HomeMy WebLinkAboutBack-Up DocumentsCity of Miami, Florida
Management Letter in Accordance
With Chapter 10.550, Rules of the
Florida Auditor General and
Independent Accountant's Report
on the Examination of the City's Compliance
with Section 218.415, Florida Statutes
Fiscal Year Ended September 30, 2018
Contents
Management Letter in Accordance with
Chapter 10.550 of the Rules of the
Florida Auditor General
Appendix A —Current Year's Findings and Recommendations to Improve Financial
Management
Appendix B — Status of Prior Years' Findings and Recommendations to Improve Financial
Management
Independent Accountant's Report
on the Examination of the City's Compliance
with Section 218.415, Florida Statutes
1-3
4-6
7-10
11
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Management Letter in Accordance with
Chapter 10.550 of the Rules of the
Florida Auditor General
Honorable Mayor and Members of the
City Commission
City of Miami, Florida
Report on the Financial Statements
We have audited the financial statements of the governmental activities, the aggregate discretely
presented component units, each major fund, and the aggregate remaining fund information of the City of
Miami, Florida (the City), as of and for the fiscal year ended September 30, 2018, and have issued our
report thereon dated March 29, 2019. Our report includes an emphasis of matter paragraph for the
adoption of Governmental Accounting Standards Board Statement 75, Accounting and Financial
Reporting for Postemployment Benefits Other Than Pensions. Our report also includes a reference to
other auditors who audited the financial statements of the following component units and funds:
Component Units / Funds Classification
• Southeast Overtown Park West Redevelopment Agency
• Omni Community Redevelopment Agency
• Midtown Community Redevelopment Agency
• 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 Management Trust
• Coconut Grove Business Improvement District
• Wynwood Business Improvement District
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
discretely presented component unit
This management letter does not include the results of the other auditors' testing of compliance and other
matters that are reported on separately by those auditors.
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Auditor's Responsibility
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.
Other Reports and Schedule
We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance
with Government Auditing Standards; Independent Auditor's Report on Compliance for Each Major
Federal Program and State Project and Report on Internal Control over Compliance; Schedule of
Findings and Questioned Costs (the schedule); and Independent Accountant's Report on an
examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding
compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Those
reports and schedule are dated March 29, 2019, except for the examination report on the City's
compliance with Section 218.415, Florida Statutes, Local Government Investment Policies, the report on
compliance for each major federal program and state project and report on internal control over
compliance, for which the date for those reports are April 30, 2019. Disclosures in those reports and
schedule should be considered in conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective
actions have been taken to address findings and recommendations made in the preceding annual
financial audit report. Corrective actions taken to address the findings and recommendations made in the
preceding annual financial audit report are disclosed in Appendix B — Status of Prior Years' Findings and
Recommendations to Improve Financial Management.
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in this
management letter, unless disclosed in the notes to the financial statements. This is disclosed in Note 1
of the financial statements.
Financial Condition and Management
Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate
procedures and communicate the results of our determination as to whether or not the City has met one
or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific
condition(s) met. In connection with our audit, we determined that the City did not meet any of the
conditions described in Section 218.503(1), Florida Statutes.
Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial
condition assessment procedures for the City. It is management's responsibility to monitor the City's
financial condition, and our financial condition assessment was based in part on representations made by
management and review of financial information provided by same.
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any
recommendations to improve financial management. In connection with our audit, we did not have any
such recommendations.
2
Additional Matters
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with
provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred,
that have an effect on the financial statements that is less than material but which warrants the attention
of those charged with governance. Such recommendations are included in Appendix A — Current Year's
Findings and Recommendations to Improve Financial Management.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor
General, Federal and other granting agencies, the Mayor, City Commissioners, and applicable
management, and is not intended to be and should not be used by anyone other than these specified
parties.
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Miami, Florida
March 29, 2019, except for the
examination report on the City's compliance with Section 218.415,
Florida Statutes, Local Government Investment Policies, the
report on compliance for each major federal program and state
project and report on internal control over compliance, for which
the date of each report is April 30, 2019
3
City of Miami, Florida
Appendix A — Current Year Findings and Recommendations to Improve
Financial Management
ML 2018-01 User Access Authorization
Criteria: Information technology (IT) general controls require that user accounts be added, modified and
deleted in a timely manner, in order to reduce the risk of unauthorized and inappropriate access to an
organization's relevant reporting applications or data.
Condition: We noted that IT system user access rights for employees are not being updated in a timely
manner when employees transfer between departments/functions or separate from the City.
Cause: Modifications are not timely performed and are not being tracked in a single system to allow for
proper management of user access changes on an ongoing basis. Currently, email exchanges are
ineffectively being used to authorize and track changes to user access rights.
Effect: Risks include damage, improper modification, and/or loss of data, and unauthorized use and
disclosure of proprietary information.
Recommendation: We recommend that management use a ticket tracking system to manage user
access rights on an ongoing basis. This will allow for the formal documentation and timely execution of
provisioning, modification and de -provisioning of user access rights, when employees transfer between
departments/functions or separate from the City.
Views of Responsible Officials and Planned Corrective Actions: We agree with the recommendation
and will work on improving the process. Starting in May 2019, all access modifications will be tracked in
Remedy Force, our ticket tracking system. We have also initiated discussions to automate the de -
provisioning process so it does not require human intervention. This will be completed by the end of June
2019. Ownership of this initiative has been assigned to the Manager of the Applications Support &
Integration Division.
4
City of Miami, Florida
Appendix A — Current Year Findings and Recommendations to Improve
Financial Management
ML 2018-02 Data Backup and Restoration
Criteria: Information technology general controls require that financial data be stored (backup) and
tested/restored on a periodic basis for propriety.
Condition: We noted the following two exceptions in a sample of fourteen backup Togs selected for
testing the City's management of stored (backup) data:
• An Oracle backup log selected for testing was not available. Management did not provide
evidence to support that that backup occurred.
• A Windows Active Directory restoration was performed however, there was no documentation to
support the result of the restoration or the individuals in charge of testing and reviewing the
ultimate results of the restoration.
Cause: Supervisory reviews are not being properly performed to ensure that backup logs are available,
restorations are being performed with or by vendors and the results of restorations are being
documented.
Effect: Risks include modification, damage, and/or loss of data. The lack of a strategy for cyclical testing
of the stored (backup) data exposes the City to operational disruption.
Recommendation: We recommend that management establish policies and procedures requiring
supervisory review of backup logs, verification that restorations are being performed with or by vendors
on a periodic basis and that the results of the restorations are properly documented. The documentation
should include the results of the restoration and the individuals in charge of testing and reviewing the
ultimate results.
Views of Responsible Officials and Planned Corrective Actions: The City concurs with the
recommendation and has assigned ownership of this initiative to the Applications Support & Integration
Manager. A process will be implemented to ensure that all the documentation associated with Oracle
patches and enhancements including CAB approvals are saved as part of the Remedy Force ticket.
Development of a new ticket template to record all the activities that take place during Oracle patching
and software enhancements will be developed during the month of April 2019. This process enhancement
will be completed by the end of May 2019.
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City of Miami, Florida
Appendix A — Current Year Findings and Recommendations to Improve
Financial Management
ML 2018-03 Change Management
Criteria: General Information Technology (IT) controls should provide reasonable assurance that
program changes, application configuration changes, system changes and maintenance (including
changes to system software and data structures), production processing changes (including new jobs,
schedule changes), and emergency changes are standardized, documented, approved, and subject to
formal change management procedures.
Condition: We noted the following two exceptions in a sample of fourteen system and program changes
selected for testing:
• There was no evidence of approval by the Change Advisory Board for three program changes
selected for testing.
• There was no documentation available to support three program changes selected for testing
were properly tested, validated, and approved before being placed into production.
Cause: Supervisory review is not performed to ensure that the Change Advisory Board agendas contain
all the information required to evidence actions taken on system and program changes. Additionally,
Change Advisory Board actions are not formally documented and stored in a central document repository
to support actions taken on an ongoing basis.
Effect: Unauthorized changes may be moved to the production environment without management's
approval and knowledge.
Recommendation: Management should consider implementing a formal mechanism whereby the
documentation related to program changes is stored and associated with a single ticket, to provide a
single source of information related to the Change Advisory Board's discussions and approvals/actions
and the test results of system and program changes.
Views of Responsible Officials and Planned Corrective Actions: The City concurs with the
recommendation and has assigned ownership of this initiative to the Applications Support & Integration
Manager. A process will be implemented to ensure that all the documentation associated with Oracle
patches and enhancements including CAB approvals are saved as part of the Remedy Force ticket.
Development of a new ticket template to record all the activities that take place during Oracle patching
and software enhancements will be developed during the month of April 2019. This process enhancement
will be completed by the end of May 2019.
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City of Miami, Florida
Appendix B — Status of Prior Years' Findings and Recommendations to Improve Financial
Management
Finding No Finding Title Current Year Status
ML 2016-01
ML 2015-01
Financial Integrity Ordinance
Use of Restricted Resources
ML 2015-02 Accounts Receivable
ML 2014-04 User Access Reviews
7
Corrected
Corrected
Repeated
Repeated
City of Miami, Florida
Appendix B — Status of Prior Years' Findings and Recommendations to Improve Financial
Management (Continued)
ML 2015-02 — Accounts Receivable
Criteria: Allowances for uncollectible receivables should be based upon historical trends and the periodic
aging of receivables. Additionally, management should assess the collectability of receivables on a
periodic basis and write-off balances not deemed to be collectible at a future date.
Prior Year's Condition: The City's allowance for uncollectible receivables was $35.1 million as of
September 30, 2017. Management should assess the collectability of the allowed receivable balances
and write-off amounts not deemed to be collectible at a future date, after all reasonable collection efforts
have been exhausted.
Current Year's Condition: The City's allowance for uncollectible receivables was $36.6 million as of
September 30, 2018. Management should assess the collectability of the allowed receivable balances
and write-off amounts not deemed to be collectible at a future date, after all reasonable collection efforts
have been exhausted.
Cause: Management has been assessing the collectability of the outstanding receivable balances over
time however, formal action has not been taken to write-off amounts not deemed to be collectible at a
future date.
Effect: Gross receivable balances reported in the financial statements may not be collectible at a future
date.
Recommendation: We recommend that management take formal action to write-off balances for financial
statement reporting purposes, which are not deemed to be collectible at a future date.
Prior Year's Views of Responsible Officials and Planned Corrective Actions: The City concurs with the
recommendation and drafted legislation, via an update to the City's Financial Integrity Principles (FIP)
Ordinance, to provide for write-offs of uncollectible accounts as part of the City's basic financial policies.
The proposed FIP revisions have been presented to the City's Finance Committee and are currently
being sponsored by a Commissioner for approval.
Current Year Views of Responsible Officials and Planned Corrective Actions: The City concurs with the
recommendation. On May 10, 2018, the City Commission adopted Ordinance 13767 which revised the
Financial Integrity Ordinance to include language that the City shall endeavor to maintain formal policies,
which reflect "best practices" in the area of revenue collection, to include write-offs of uncollectible
accounts. The Finance staff is currently working to develop a write-off policy that is aligned with current
accounting standards and current best practices.
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City of Miami, Florida
Appendix B — Status of Prior Years' Findings and Recommendations to Improve Financial
Management (Continued)
ML 2014-04 — User Access Reviews
Criteria: User access rights to an organization's relevant financial reporting applications or data should be
reviewed periodically by management.
Prior Year's Condition: We noted periodic user access reviews are not being performed for the network
(active directory) to validate that employee system access rights are appropriate based on the
employee's roles and responsibilities. Additionally, we noted in fiscal year 2017, management
implemented a process to review Oracle user access rights however, such reviews were not completed
as of the fiscal year ended.
Current Year's Condition: We noted periodic user access reviews are not being performed for the network
(active directory) to validate that employee system access rights are appropriate based on the
employee's roles and responsibilities. Additionally, we noted an Oracle user access rights review was not
completed for the Office of Planning and Office of Management and Budget.
We noted periodic user access reviews are not being performed for the network (active directory) to
validate that employee system access rights are appropriate based on the employee's roles and
responsibilities. Additionally, we noted in fiscal year 2017, management implemented a process to review
Oracle user access rights however, such reviews were not completed as of the fiscal year ended.
Cause: The City does not have established policies and procedures in place requiring the review of user
access rights on a periodic basis.
Effect: Risks include unauthorized use, disclosure of proprietary information, modification, damage or loss
of data.
Recommendation: We recommend that management establish formal policies and procedures to allow for
the proper administration of user access rights on an ongoing basis. Such policies and procedures should
address the proper provisioning, modifying, removing, and periodic review of access rights assigned to
employees. Management should determine as part of the user access review that configured access
rights are appropriate based on the employee's roles and responsibilities. This review should indicate
who performed the review, when the review was performed, and if any access changes are required.
Prior Year's Views of Responsible Officials and Planned Corrective Actions: We have processes in place
to ensure that access to Oracle Financial Data is granted only authorized employees. We have a formal
process in place to determine who can request access to Financial Data. Oracle Responsibilities
associated with data access are only assigned after the requestor's department and Process Owners
approve. We are also generating a Responsibility Matrix Report that is sent to the Directors of
departments that manage core functionality to validate user access. Regarding conducting network
access reviews to control access to financial information, having access to the network or the windows
domain does not automatically grant access to Oracle EBS. There is no integration between the
environments to transparently login to one from the other. A second account from Oracle EBS is required
to access the financial reporting applications. Moreover, the Oracle EBS system is installed on a separate
Linux platform that also requires a different, non -Windows, account to have system level access. We
currently do not have an automated process that would allow us to conduct network user access reviews.
We have requested funding to implement an Identity Management System for FY 18/19.
9
City of Miami, Florida
Appendix B — Status of Prior Years' Findings and Recommendations to Improve Financial
Management (Continued)
Current Year Views of Responsible Officials and Planned Corrective Actions:
Active Directory User Access Reviews
The City concurs with the recommendation and has assigned ownership of this initiative to the
Information Security Team. We will initiate conversations to address this recommendation during the
month of April 2019 and expect to have a plan by June 30, 2019. However, implementing a policy and a
process to review Active Directory user access for over five thousand employees will require adequate
funding. Funding requirements will be discussed with the Office of Management and Budget (OMB) as we
progress with the elaboration of the plan. A full implementation of this initiative will most likely occur
during fiscal year 2020 but implementation progress will be monitored and recorded monthly.
Oracle Access Reviews
The City concurs with the recommendation and has assigned ownership of this initiative to the Oracle
System Administrator. During the fiscal year subject of this audit, Oracle responsibility matrixes were sent
to all departments including the Office of Planning and OMB. We will write a policy that clearly outlines
the timeline for department directors to respond. Our plan is to have this completed June 30, 2019.
10
Independent Accountant's Report
The Honorable Mayor, Members of the
City Commission, and City Manager
City of Miami, Florida
We have examined the City of Miami, Florida's (the City) compliance with Section 218.415, Florida
Statutes, Local Government Investment Policies during the fiscal year ended September 30, 2018.
Management is responsible for the City's compliance with those requirements. Our responsibility is to
express an opinion on the City's compliance with the specified requirements based on our examination.
Our examination was conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants. Those standards require that we plan and perform the
examination to obtain reasonable assurance about whether the City complied, in all material respects,
with the specified requirements referenced above. An examination involves performing procedures to
obtain evidence about whether the City complied with the specified requirements. The nature, timing, and
extent of the procedures selected depend on our judgment, including an assessment of the risk of
material noncompliance, whether due to fraud or error. We believe that our examination provides a
reasonable basis for our opinion.
Our examination does not provide a legal determination on the City's compliance with specified
requirements.
In our opinion, the City complied, in all material respects, with the aforementioned requirements for the
fiscal year ended September 30, 2018.
This report is intended solely for the information and use of the Florida Auditor General, the Honorable
Mayor, Members of the City Commission, the City Manager, and applicable management, and is not
intended to be and should not be used by anyone other than these specified parties.
Miami, Florida
April 30, 2019
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City of Miami, Florida
Single Audit Reports in Accordance with
Uniform Guidance and Chapter 10.550, Rules
of the Florida Auditor General
Fiscal Year Ended September 30, 2018
Table of Contents
Independent Auditor's Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance With
Government Auditing Standards
Independent Auditor's Report on Compliance for Each Major
Federal Program and State Project; Report on Internal Control
Over Compliance; and Report on the Schedule of Expenditures of
Federal Awards and Schedule of State Financial Assistance Required by the
Uniform Guidance and Chapter 10.550, Rules of the Florida Auditor General
1-2
3-5
Schedule of Expenditures of Federal Awards 6 — 9
Schedule of State Financial Assistance 10
Notes to Schedule of Expenditures of Federal Awards and Schedule of State Financial
Assistance 11
Schedule of Findings and Questioned Costs 12 —13
Summary Schedule of Prior Years' Audit Findings 14
Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance With
Government Auditing Standards
Independent Auditor's Report
To the Honorable Mayor
and Members of the City Commission
City of Miami, Florida
We have audited, in accordance with the 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, the 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, 2018, and the related notes to the financial statements, which collectively comprise the
City's basic financial statements, and have issued our report thereon dated March 29, 2019. Our report
includes an emphasis of matter paragraph for the adoption of Governmental Accounting Standards
Board Statement 75, Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions. Our report also includes a reference to other auditors who audited the financial statements of
the following component units and funds, as described in our report on the City's financial statements:
Component Units / Funds Classification
• Southeast Overtown Park West Redevelopment Agency
• Omni Community Redevelopment Agency
• Midtown Community Redevelopment Agency
• 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 Management Trust
• Coconut Grove Business Improvement District
• Wynwood Business Improvement District
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
discretely presented component unit
This report does not include the results of the other auditors' testing of internal control over financial
reporting or compliance and other matters that are reported on separately by those auditors.
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Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of City's internal control. Accordingly, we do not
express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the entity's financial statements will not be prevented, or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity's internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Miami, Florida
March 29, 2019
2
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Report on Compliance for Each Major
Federal Program and State Project;
Report on Internal Control Over Compliance; and
Report on Schedule of the Expenditures of
Federal Awards and Schedule of State Financial
Assistance Required by the Uniform Guidance and
Chapter 10.550, Rules of the Florida Auditor General
Independent Auditor's Report
To the Honorable Mayor
and Members of the City Commission
City of Miami, Florida
Report on Compliance for Each Major Federal Program and State Project
We have audited the City of Miami, Florida's (the City) compliance with the types of compliance
requirements described in the OMB Compliance Supplement and the requirements described in the
Florida Department of Financial Services State Projects Compliance Supplement, that could have a direct
and material effect on each of the City's major federal programs and state projects for the year ended
September 30, 2018. The City's major federal programs and state projects are identified in the summary
of auditor's results section of the accompanying schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with federal and state statutes, regulations, and the terms and
conditions of its federal and state awards applicable to its federal programs and state projects.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of the City's major federal programs
and state projects based on our audit of the types of compliance requirements referred to above. We
conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2
U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance) and Chapter 10.550, Rules of the Florida
Auditor General (Chapter 10.550). Those standards, the Uniform Guidance and Chapter 10.550 require
that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the
types of compliance requirements referred to above that could have a direct and material effect on a
major federal program or state project occurred. An audit includes examining, on a test basis, evidence
about the City's compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances.
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We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program and state project. However, our audit does not provide a legal determination of the City's
compliance.
Opinion on Each Major Federal Program and State Project
In our opinion, the City complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on each of its major federal programs and
state projects for the year ended September 30, 2018.
Report on Internal Control Over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In planning and performing our
audit of compliance, we considered the City's internal control over compliance with the types of
requirements that could have a direct and material effect on each major federal program and state project
to determine the auditing procedures that are appropriate in the circumstances for the purpose of
expressing an opinion on compliance for each major federal program and state project, and to test and
report on internal control over compliance in accordance with Uniform Guidance and Chapter 10.550, but
not for the purpose of expressing an opinion on the effectiveness of internal control over compliance.
Accordingly, we do not express an opinion on the effectiveness of the City's internal control over
compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program or state project on a timely basis. A material weakness in internal control over
compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that
there is a reasonable possibility that material noncompliance with a type of compliance requirement of a
federal program or state project will not be prevented, or detected and corrected, on a timely basis. A
significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies,
in internal control over compliance with a type of compliance requirement of a federal program or state
project that is less severe than a material weakness in internal control over compliance, yet important
enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
Uniform Guidance and Chapter 10.550. Accordingly, this report is not suitable for any other purpose.
4
Report on Schedule of Expenditures of Federal Awards and Schedule of State Financial
Assistance Required by the Uniform Guidance and Chapter 10.550, Rules of the Florida Auditor
General
We have audited the financial statements of the City as of and for the year ended September 30, 2018,
and have issued our report thereon dated March 29, 2019, which contained unmodified opinions on those
financial statements, and included a reference to other auditors. Our audit was conducted for the purpose
of forming opinions on the financial statements that collectively comprise the basic financial statements.
The accompanying schedule of expenditures of federal awards and schedule of state financial assistance
are presented for purposes of additional analysis as required by Uniform Guidance and Chapter 10.550,
and is not a required part of the basic financial statements. Such information is the responsibility of
management and was derived from and relates directly to the underlying accounting and other records
used to prepare the basic financial statements. The information has been subjected to the auditing
procedures applied in the audit of the financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used
to prepare the basic financial statements or to the basic financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the schedule of expenditures of federal awards and schedule of state financial
assistance are fairly stated in all material respects in relation to the basic financial statements as a whole.
�s,-f vs .c,cP
Miami, Florida
April 30, 2019, except for the Schedule of Expenditures of Federal Awards
and Schedule of State Financial Assistance for which the date is March 29, 2019
5
City of Miami, Florida
Schedule of Expenditures of Federal Awards
Fiscal Year Ended September 30, 2018
City of Miami, Florida
Schedule of Expenditures of Federal Awards and State Financial Assistance
For the Fiscal Year Ended September 30, 2018
Federal Grantor/Pass-through Grantor/Program or Cluster Title
CFDA
Number
Grant/Contract Number
Pass -Through Entity Identifying
Number
Passed Through to
Subreciplents
U.S Department of Agriculture
Pass -Through Florida Department of Health
Child and Adult Care Food Program
Pass -Through Miami -Dade County, Florida
Supplemental Nutrition Assistance Program
Pass -Through Miami -Dade County, Florida
State Administrative Matching Grants for the Supplemental Nutrition Assistance Program
Total U.S Department of Agriculture
U.S Department of Housing and Urban Development
Federal Expenditures
10.558 A-2384 16165FL350N1099 $ $ 65,128
5-576 16165EL350N1099/16165FL350N2020 - 64,789
129,917
10.551 WS-CC-PY'17-13-00 175FL41152520 - 13,417
10.561 WS-CC-PY'17-13-00 175FL41152520 - 40,241
WS-SP-PY'17-14-00 175FL41152520 - 17,654
57,895
$ - $ 201,229
Community Development Block Grants/Entitlement Grants Cluster 14.218 B-05-MC-120013
B-06-MC-120013
B-07-MC-120013
B-08-MC-120013
B-08-MN-120016
B-09-MC-120013
B-10-MC-120013
B-11-MC-120013
B-12-MC-120013
B-13-MC-120013
B-14-MC-120013
B-15-MC-120013
B-16-MC-120013
B-17-MC-120013
$ 87,171
123
226,130
110,422
5,804
166,255
14,506 393,623
75,262
191,021
92,512
769,504
15,362 419,443
122,572 595,295
1,454,314 3,302,791
1,606,754 6,435,356
Emergency Solutions Grant Program 14.231 E-17-MC-120002 - 421,674
(continued)
6
City of Miami, Florida
Schedule of Expenditures of Federal Awards
Fiscal Year Ended September 30, 2018
Federal Grantor/Pass-through Grantor/Program or Cluster Title
CFDA
Number
Grant/Contract Number
Pass -Through Entity Identifying
Number
Passed Through to
Subrecipients
Federal Expenditures
Pass -Through Miami -Dade County, Florida
Supportive Housing Program 14.235 FL0189L4D001609 596000573 - 87,996
FL0189L40001710 596000573 - 192,531
FL0190L4D001609 596000573 - 86,653
FL0190L4D001710 596000573 - 52,434
FL0211L4D001609 596000573 152,108
F10211L4D001710 596000573 94,852
666,574
Home Investment Partnership Program
Housing Opportunities for Persons with AIDS
14.239
14.241
M-05-MC-120211
M-06-MC-120211
M-07-MC-120011
M-09-MC-120011
M-10-MC-120011
M-12-MC-120011
M-13-MC-120011
M-14-MC-120011
M-15-MC-120011
M-16-MC-120011
M-17-MC-120011
F-LH-05-F005
F-LH-06-F005
F-LH-08-F005
F-LH-09-F005
F-LH-11-F005
F-LH-12-F005
F-LH-15-F005
F-LH-16-F005
F-LH-17-F005
2,173
39,609
9,413
221,384
44,000
262,740
179,871
57,619
642,706
1,010,822
631,552
753,505
3,853,221
620,758
342,186
172,077
207,500
212,548
22
2,723,991
1,050,142
5,711,392
2,173 11,040,616
Lower Income Housing Assistance Program -Section 8 Moderate Project -Based Cluster 14.856 FL145MR0001 8,863
FL145MR0001 1,819,062
FL145MR002 546,640
2,374,565
Section 8 Housing Choice Vouchers Cluster 14.871 FL145 2,344,358
Total U.S Department of Housing and Urban Development $ 5 27,136,364
(continued)
7
City of Miami, Florida
Schedule of Expenditures of Federal Awards
Fiscal Year Ended September 30, 2018
Federal Grantor/Pass-through Grantor/Program or Cluster Title
CFDA Pass -Through Entity Identifying Passed Through to
Number Grant/Contract Number Number Subrecipients Federal Expenditures
U.S Department of Justice
Pass -Through Office of the Florida Attorney General
Crime Victim Assistance
Public Safety Partnership and Community Policing Grants
Edward Byrne Memorial Justice Assistance Grant Program
16.575 VOCA-2016-City of Miami Police 596000375 $ $ 69,697
VOCA-2017-City of Miami Police Depa-00096 596000375 - 12,413
82,110
16.710 2014ULWX0043 - 35,820
2016ULWX0024 730,196
2017ULWX0033 183,961
949,977
16.738 2016-CD-BX-0055 - 7,858
2016-DJ-BX-0816 - 90,160
98,018
Pass -Through Florida Department of Law Enforcement
Edward Byrne Memorial Justice Assistance Grant Program 16.738 2017-JAGC DADE-6-F9.056 2016-MU-BX0073 114
2017-JAGC DADE-7-F9-038 2016-MU-BX0073 1,077
1,191
DNA Backlog Reduction Program 16.741 2017-AK-BX-0013 107,114
Edward Byrne Memorial Competitive Grant Program 16.751 2014-WY-BX-002 39,014 66,226
Body Worn Camera Policy and Implementation 16.835 2016-BC-BX-K087 612,862
Equitable Sharing Program 16.922 not applicable 633,437
Total U.S Department of Justice $ 39,014 $ 2,550,935
U.S Department of Labor
Pass -Through Miami Dade County, Florida
Unemployment Insurance 17.225 WS-CC-PY'17-13-00 UI-29835-17-55-A-12 $ $ 32,335
WS-CC-PY'17-13-00 UI-29835-17-55-A-12 6,260
WS-CC-PY'16-13-00 UI.28125.16-60-A-12 9,748
48,343
WIOA Cluster
Pass -Through Miami Dade County, Florida
WIA/WIOA Adult Program Cluster 17.258 WS-CC-PY'17-13-00 AA-28310-16-55-A-12 162,423
WS-SP-PY" 17-14-00 AA-28310-16-55-A-12 - 65,604
228,027
Pass -Through Miami Dade County, Florida
WIA/WIOA Dislocated Worker Formula Grants Cluster 17.278 WS-CC-PY'17-13-00 AA-28310-16-55-A-13 203,452
203,452
Pass -Through Miami Dade County, Florida
WIA/WIOA Rapid Response Cluster 17.278 WS-CC-PY'16-13-00 AA-28310-16-55-A-14 - 2,612
WS-CC-PY'17-13-00 AA-28310-16-55-A-14 - 46,634
49,246
Total WIOA Cluster - 480,725
Total U.S Department of Labor $ - $ 529,068
U.S. Department of Transportation
Pass -Through Florida Department of Transportation
Highway Planning and Construction Cluster 20.205 G0023 Not available $ - $ 15,052
National Priority Safety Programs 20.616 GOF17 6,362
GOP50 78,515
84,877
Total U.S Department of Transportation $ - $ 99,929
8 (continued)
City of Miami, Florida
Schedule of Expenditures of Federal Awards
Fiscal Year Ended September 30, 2018
Federal Grantor/Pass-through Grantor/Program or Cluster Title
CFDA
Number
Pass -Through Entity Identifying Passed Through to
Grant/Contract Number Number Subrecipients
U.S Department of Health and Human Services
Pass -Through Miami Dade County, Florida
Temporary Assistance for Needy Families 93.558 WS-CC-PY'17-13-00 G-17001FLTANF
WS-SP-PY'17-14-00 G-17001FLTANF
Pass -Through Florida Agency for Persons with Disabilities
Medical Assistance Program 93.778 Not Applicable Not available
Total U.S Department of Health and Human Services
Executive Office of the President
Pass -Through South Florida HIDTA/Monroe County Sheriffs
High Intensity Drug Trafficking Areas Program
Total Executive Office of the President
U.S Department of Homeland Security
National Urban Search and Rescue (US&R) Response System
$
Federal Expenditures
307,561
130,203
437,764
309,422
$ 747,186
95.001 015M10001A 015M10001A $ - $ 4,043
016M100001A G16MI0001A - 57,009
G17MI0001A G17MI0001A - 24,853
$ - $ 85,905
97.025 EMW2015CA00042 $ $ 55,312
EMW-2016-CA-00019-S01 - 251,682
EMW2017CA00048 - 917,074
EMW-95-k-4718 - 1,367,665
2,591,733
Assistance to Firefighters Grant 97.044 2017-F6-C111-P4310000-4101-D - 528,492
Pass Through State of Florida Division of Emergency Management
Homeland Security Grant Program 97.067 16-DS-U7-11-23-02-368
17-D5-V4-11-23-02-340
17-05-V 9-11-23-02-346
18-DS-X3-11-23-02-376
18-DS-X1-11-23-02-338
Pass -Through Florida Emergency Management Agency
Disaster Assistance Projects 97.036 4337DR-FL(086-45000-00)
4337D8-FL(086-45000-00 )
Total U.S Department of Homeland Security
Total Expenditures for Federal Awards
See Notes to Schedule of Expenditures of Federal Awards and Schedule of State Financial Assistance
9
EMW -2015-S S-00083 -501
E M W-2016-SS-00092-S01
E M W-2016-SS-00092-501
EMW-2017-SS-00061
EMW-2017-SS-00061
216,506
2,907,940
336,507
20,711
4,099,866
420,822
1,909
3,124,446 4,879,815
6,647,461
4,142
6,651,603
$ 3,124,446 $ 14,651,643
$ 4,772,387 $ 46,002,259
City of Miami, Florida
Schedule of State Financial Assistance
Fiscal Year Ended September 30, 2018
State Grantor/Pass-through Grantor/Program or Cluster Title CSFA Number Grant/Contract Number State Expenditures
Department of Environmental Protection
Wastewater Treatment Facility Construction
Total Department of Environmental Protection
37.077 SW 132000 $ 2,346,680
Florida Housing Finance Corporation
State Housing Initiatives Partnership (SHIP) Program 40.901 Not applicable $ 30,488
SHIP FY2016-2017 718,459
SHIP FY2017-2018 338,675
Total Florida Housing Finance Corporation $ 1,087,622
Florida Department of State
Cultural Facilities Grant Program 45.014 18.9.200.095 $ 38,903
Acquisition, Restoration of Historic Properties 45.032 MP511 1,000,000
18.h.sm.300.070 7,350
1,007,350
Total Florida Department of State $ 1,046,253
Department of Transportation
Florida Highway Beautification Grant Program Keep Florida Beautiful
Public Transit Service Development Program
Total Department of Transportation
Department of Health
Pass -Through Miami -Dade County, Florida
County Grant Awards
Total Department of Health
Florida Department of Law Enforcement
Crime Reporting and Analytics
Total Department of Law Enforcement
Total Expenditures of State Financial Assistance
See Notes to Schedule of Expenditures of Federal Awards and Schedule of State Financial Assistance
55.003 G0545 $ 16,000
55.012 GE075 205,363
$ 221,363
64.005 EMS County Grant #C0013 $ 25,834
$ 25,834
71.021 G1612 $ 655,903
10
655,903
5,383,655
City of Miami, Florida
Notes to Schedule of Expenditures of Federal Awards and Schedule of State Financial Assistance
Fiscal Year Ended September 30, 2018
Note 1. General and Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards and Schedule of State Financial
Assistance (the Schedules) presents the expenditure activities of all federal programs and state awards of
the City of Miami, Florida (the City) for the year ended September 30, 2018. All expenditures related to
federal awards and state financial assistance received directly from federal and state agencies, as well as
federal and state awards passed through other government agencies are included in the accompanying
Schedules. The information in the Schedules is presented in accordance with the requirements of the
Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards (Uniform Guidance) and Chapter 10.550, Rules of the
Florida Auditor General. Because the Schedules present only a selected portion of the operations of the
City, it is not intended to and does not present the financial position, changes in fund balance/net position
or cash flows, where applicable, of the City. The City's reporting entity is defined in Note 1 of the City's
basic financial statements.
Note 2. Basis of Accounting
The accompanying Schedules are presented using the modified accrual basis of accounting since grants
are accounted for in the governmental fund types of the City. Such expenditures are reported following
the cost principles contained in the Uniform Guidance and the Rules of the Department of Financial
Services of the State of Florida, wherein certain types of expenditures are not allowable or are limited as
to reimbursement.
Note 3. Indirect Cost Recovery
The City did not recover its indirect costs using the 10% de minimis indirect cost rate provided under
Section 200.414 of the Uniform Guidance.
11
City of Miami, Florida
Schedule of Findings and Questioned Costs
Fiscal Year Ended September 30, 2018
I — Summary of Independent Auditor's Results
Financial Statements
Type of auditor's report issued:
Unmodified
Internal control over financial reporting:
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified? Yes X None Reported
Noncompliance material to financial statements noted? Yes X No
Federal Awards
Internal control over major programs:
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified? Yes X None Reported
Type of auditor's report issued on compliance for
major programs: Unmodified
Any audit findings disclosed that are required
to be reported in accordance with Section
2 CFR 200.516(a)? Yes X No
Identification of major programs:
The programs tested as major were as follows:
CFDA Number(s)
97.067
97.036
Name of Federal Program or Cluster
Homeland Security Grant Program
Disaster Assistance Projects
Dollar threshold used to distinguish between type
A and type B programs: $ 1,380,068
Auditee qualified as low -risk auditee? X Yes
(Continued)
City of Miami, Florida
Schedule of Findings and Questioned Costs (Continued)
Fiscal Year Ended September 30, 2018
Section I — Summary of Auditor's Results (Continued)
State Financial Assistance
Internal control over major projects:
Material weakness(es) identified?
Significant deficiency(ies) identified?
Type of auditor's report issued on compliance for
major projects:
Any audit findings disclosed that are required
to be reported in accordance with Chapter 10.550,
Rules of the Florida Auditor General?
Identification of major projects:
The projects tested as major were as follows:
CSFA Number(s)
37.077
40.901
45.032
71.021
Yes X No
Yes X None Reported
Unmodified
Yes X No
Name of State Project
Wastewater Treatment Facility Construction
State Housing Initiatives Partnership (SHIP) Program
Acquisition, Restoration of Historic Properties
Crime Reporting and Analytics
Dollar threshold used to distinguish between type
A and type B projects: $300,000
Section II — Financial Statements Findings
No matters to report.
Section III — Federal Awards Findings and Questioned Costs
No matters to report.
Section IV — State Financial Assistance Findings and Questioned Costs
No matters to report.
13
City of Miami, Florida
Summary Schedule of Prior Years' Audit Findings
Fiscal Year Ended September 30, 2018
Finding No.
Finding Title Current Year Status
State Financial Assistance and Questioned Costs
Internal Control over Compliance Findings
IC 2017-01 Reporting — CFDA #40.012 Corrected
Compliance Findings
CF 2017-01 Reporting — CFDA #40.012 Corrected
14
City of iviiarni, Horida
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PR FlEt UAL
F1ANCiAF�QRT
F SC YEA NDE EPTEM ,ER 3O2018,
Prepared By:
The Finance Department
Erica T. Paschal, CPA Eugene Codner
Director Controller
Munirah Daniel, CPA Noel G. Ramos
Assistant Director Finance Manager
Page left intentionally blank
Ci T of pq o �
Comprehensive Annual Financial Report For
the Fiscal Year Ended September 30, 2018
Table of Contents
INTRODUCTORY SECTION
Principal City Officials 3
City Organizational Chart 4
Letter of Transmittal 5
GFOA Certificate of Achievement 18
FINANCIAL SECTION
Independent Auditor's Report 21
Management's Discussion and Analysis 25
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Position 38
Statement of Activities 39
Fund Financial Statements:
Governmental Funds:
Balance Sheet 40
Reconciliation of the Balance Sheet - Governmental Funds to Government -wide Statement
of Net Position 41
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 42
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds to the Statement of Activities 43
Fiduciary Funds:
Statement of Fiduciary Net Position 44
Statement of Changes in Fiduciary Net Position 45
Discretely Presented Component Units:
Statement of Net Position 46
Statement of Activities 48
Notes to the Financial Statements 50
i
Required Supplementary Information:
Budgetary Comparison Schedules of Revenues, Expenditures and Changes in Fund Balances:
General Fund 145
Notes to Required Supplementary Information 146
Pension Schedules:
Schedule of Changes in the Total OPEB Liability and Related Ratios 147
Schedule of Changes in the Net Pension Liability and Related Ratios 148
Schedule of Employer Contributions 154
Schedule of Investment Returns 159
Combining and Individual Fund Financial Statements and Schedules:
Nomnajor Governmental Funds:
Combining Balance Sheet 165
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 172
Budgetary Comparison Schedules:
Special Revenue Funds:
OMNI Community Redevelopment Agency (OMNI) Fund 179
Midtown Community Redevelopment Agency (Midtown) Fund 180
Southeast Overtown Park West Community Redevelopment Agency (SEOPW) Fund 181
Homeless Program Fund 182
Community Development Fund 183
Choice Housing Vouchers (Section 8) Fund 184
State Housing Initiatives Program (SHIP) Fund 185
Convention Center Fund 186
Economic Development & Planning Services Fund 187
Net Offices Fund 188
Parks and Recreations Fund 189
Police Services Fund 190
Law Enforcement Trust Fund 191
Public Works Services Fund 192
City Clerk Services Fund 193
Fire Rescue Special Revenue Fund 194
General Special Revenue Fund 195
Department Improvement Initiatives Fund 196
Transportation & Transit Fund 197
Miami Ballpark Parking Facilities Fund 198
Liberty City Revitalization Trust 199
Virginia Key Beach Trust 200
Solid Waste Recycling Trust 201
Bayfront Park Land Acquisition Trust Fund 202
Debt Service Funds:
General Obligation Bonds Fund 203
Special Obligation Bonds Funds 204
ii
CRA Other Special Obligation Bonds Fund 206
Fiduciary Funds:
Combining Statement of Fiduciary Net Position 207
Combining Statement of Changes in Fiduciary Net Position 208
STATISTICAL SECTION
Financial Trends:
Net Position by Component 210
Changes in Net Position 211
Governmental Activities Tax Revenues by Source 212
Fund Balances - Governmental Funds 213
Changes in Fund Balances - Governmental Funds 214
Revenue Capacity:
General Government Tax Revenues by Source 216
Net Assessed Value and Estimated Actual Value of Taxable Property 217
Property Tax Rates — Direct and Overlapping Governments 218
Principal Property Taxpayers 219
Property Tax Levies and Collections 220
Debt Capacity:
Ratios of Outstanding Debt by Type 221
Ratios of General Bonded Debt Outstanding 222
Direct and Overlapping Governmental Activities Debt .223
Legal Debt Margin Information 224
Pledged Revenue Coverage 225
Demographics and Economic Information:
Demographics and Economic Statistics 226
Principal Employers 227
Operating Information:
Full -Time Equivalent City Government Employees by Function 228
Operating Indicators by Function 229
Capital Assets Statistics by Function/Program 230
iii
Page left intentionally blank
1
2
FRANCIS X.
SUAREZ
Mayor
WIFREDO
"WILLY"
GORT
Vice -Chairman
MANOLO
REYES
Commissioner
EMILIO T.
GONZALEZ,
Ph.D.
City Manager
KEN
RUSSELL
Chairman
JOE
CAROLLO
Commissioner
KEON
HARDEMON
Commissioner
VICTORIA
MENDEZ
City Attorney
September 30, 2018
3
CITY COMMISSION
Chairman: Ken Russell
District 2
Vice -Chairman:
Wifredo "Willy" Gort
District 1
Commissioner: Joe Carollo
District 3
Commissioner: Manolo Reyes
District 4
Commissioner: Keon Hardemon
District 5
City Attorney
Victoria Mendez
City Clerk
Todd B. Hannon
Independent
Auditor General
Theodore Guba. CPA
Francis X. Suarez
Executive Mayor
Emilio T. Gonzalez, Ph.D.
Chief Administrator / City Manager
Deputy City Manager
Joseph F. Napoli
Assistant City Manager
Chief of Operations
Fernando Casarnayor
Code Compliance
Human Services
Innovation and
Technology
Neighborhood
Enhancement Team
Real Estate and Asset
Management
— Solid Waste
Coconut Grove BID
Downtown
Development
Authority
Liberty City Trust
Wynwood BID
Assistant City Manager
Chief Financial Officer
Sandra Bridgernan. CPA
-- Finance
General Services
Administration
Grants Administration
Housing and Community
Development
Management and Budget
Procurement
Risk Management
Fire Fighters' and Police
Officers' Retirement Trust
General Employees' and
Sanitation Employees'
Retirement Trust
Midtown CRA
Omni CRA
Southeast Overtown
Park West CRA
Assistant City Manager
Chief of Infrastructure
Nzerile Ihekwaba, PhD., PE
— Building
— Capital Improvements
— Parks and Recreation
Planning
Resilience and
Public Works
Resilience and
Sustainabitity
Bayfront Park
Management Trust
Civilian
Investigative Panel
Miami Parking
Authority
Virginia Key Beach
Park Trust
Agenda
Coordination
Communications
Equal Opportunity
and Diversity
Programs
Fire -Rescue
Human Resources
Police
Civic Service
4
March 29, 2019
To the Honorable Mayor, Members of the Commission, and Citizens of the City of Miami, Florida:
We are pleased to present the City of Miami, Florida's ("the City") Comprehensive Annual Financial
Report ("CAFR") as of and for the fiscal year ended September 30, 2018. The fmancial statements
were prepared in accordance with accounting principles generally accepted in the United States of
America (GAAP) as promulgated by the Governmental Accounting Standards Board (GASB).
Management assumes full responsibility for the completeness and reliability of the information
contained in this report, based upon a comprehensive framework of internal control that it has
established for this purpose. Because the cost of internal control should not exceed anticipated
benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial
statements are free of any material misstatements.
RSM US LLP, Certified Public Accountants, have issued an unmodified ("clean") opinion on the
City's basic financial statements as of and for the fiscal year ended September 30, 2018. The
independent auditor's report is located at the front of the fmancial section of this report.
The management's discussion and analysis ("MD&A") immediately follows the independent
auditor's report and provides a narrative introduction, overview, and analysis of the basic financial
statements. MD&A complements this letter of transmittal and should be read in conjunction with it.
This report may also be accessed via the internet at http://www.miamigov.com/fmance.
City Profile & Government Structure
The City is situated at the mouth of the Miami River on the western shores of Biscayne Bay. It is a
main port of entry into Florida. Now 122 years old, the City is part of the nation's eighth largest
metropolitan area. Incorporated in 1896, the City is the only municipality conceived and founded by
a woman — Julia Tuttle. According to the U.S. Census Bureau, the City's population in 1900 was
1,700 people. Today it is a city rich in cultural and ethnic diversity of approximately 481,333
residents according to the Bureau of Economic and Business Research, University of Florida, 58.0
percent of them foreign born. In physical size, the City is not large, encompassing only 35.87 square
miles. In population, the City is the largest of the 34 municipalities that make up Miami -Dade
County.
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. 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-five cities, including
the City and unincorporated areas. The County has not displaced nor replaced the cities' powers but
supplements them. The County can take over 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 fmancial statements are not included in this report.
5
Since 1997, the City has been governed by a form of government known as the "Mayor -City
Commissioner plan." There are five Commissioners elected from designated districts within the City.
City elections are held in November every two years on a non -partisan basis. Candidates for Mayor
must run as such and not for the Commission in general. At each election, two or three members of
the Commission are elected for four-year terms. Thus, the terms are staggered so that there are
always at least two experienced members of the Commission. The Mayor is elected at large every
four years.
As official head of the City, the Mayor has veto authority over actions of the Commission. However,
the Commission can override a mayoral veto if four -fifths of all Commissioners present votes in
favor of a resolution to override a mayoral veto. The Commission action in question shall be deemed
enacted or adopted and effective in accordance with its terms; otherwise, the mayoral veto shall be
deemed sustained.
The Mayor appoints the City Manager who functions as chief administrative officer. The City
Manager serves as the administrative head of the municipal government, charged with the
responsibility of managing the City's fmancial operations and organizing and directing the
administrative infrastructure. The City Manager also retains full authority in the appointment and
supervision of department directors, preparation of the City's annual budget and initiation of the
investigative procedures. In addition, the City Manager takes appropriate action on all administrative
matters.
The City provides a full range of services, including police and fire protection; public works
activities; refuse collection; building inspections; licenses and permits; vital statistics; the
construction and maintenance of streets, and other infrastructure; recreational and cultural activities;
and trolley services.
The accompanying financial statements include those of the City and those of its component units.
Component units are legally separate organizations for which the City is financially accountable or
organizations that should be included in the City's fmancial statements because of the nature and
significance of their relationship with the City. Additional information on all these legally separate
entities can be found in the notes to the financial statements.
Budget Process and Control
The Mayor is required to prepare and deliver a budgetary address annually to the people of the City
any time between one to three months preceding the beginning of the fiscal year.
The City Commission is required to hold public hearings on the proposed budget and to adopt the
final budget no later than September 30th preceding the beginning of the fiscal year on October 1s`
The annual budget serves as the foundation for the City's financial planning and control.
Budgets are monitored at varying levels of classification detail that include both personnel and
operating as appropriation designations; however, budgetary control is legally maintained at the fund
level except for the general fund, which is maintained at the departmental operating 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 and all non -major governmental
funds with appropriated annual budgets.
6
The major phases of the budget process are detailed in the Notes to the Required Supplementary
Information Section of this report.
Local Economic Condition and Outlook
With one of the tallest skylines in the United States, the City of Miami is the heart of South Florida
and is a global leader in terms of multicultural growth and business development. It is the most
populous city in the Miami metropolitan area and is ranked 9th in the U.S. for business activity,
human capital, information exchanges, cultural experience and political engagement. With the
tropical climate and its close vicinity to PortMiami and Miami International Airport, tourism is a
major component of the City's economy. Furthermore, Miami is home to one of the largest
concentrations of international banks, with majority of the banks being in the Miami Brickell area.
Local unemployment continues a steady decline from the previous year with Miami reporting a 3.3
percent unemployment rate as of September 2018, which is a decrease from 4.6 percent reported a
year ago. A good business climate has been created for the South Florida economy, encouraging
growth in construction, motion pictures, fmancial services, and tourism. With growth in these sectors
of the South Florida economy, employment should strengthen, as all indicators point towards steady
improvement in the local economy.
The City's housing prices continued its upward trend in 2018. The median sales price for single-
family homes in Miami increased 7.5 percent in September 2018, to $360,000. Condominiums
median sales price increased 1.3 percent to $237,000 from $234,500 in September 2018. Overall, the
number of single-family home sales in Miami -Dade County increased 43 percent compared with
September 2017 and condo sales also increased 29.5 percent year -over year, according to a monthly
report released by the Miami Association of Realtors. Miami has experienced nearly seven
consecutive years of price appreciation. Low mortgage rates continue to make purchasing a home
more affordable.
Moody's Investors Service upgraded the City's general obligation limited tax rating from Al to Aa2
in March 2018 due to its strong financial position. Moody's noted that the outlook reflects the
likelihood that the City's credit profile will remain stable over the next several years, because of tax
base growth, satisfactory reserve and cash balances which will keep pace with budget growth and the
maintenance of a manageable debt burden despite plans for additional borrowing.
The tax base growth is driven by large projects including the Miami Worldcenter, which recently
opened its first tower to welcome new residents. The Miami Worldcenter project located just north of
downtown Miami is a 27-acre mixed -use development covering 10 blocks. The center will include
up to 450,000 square feet of retail, 2,000 residential units, 1,700 hotel rooms, 500,000 square feet of
exposition space and 100,000 square feet of parks and public spaces. The project is within walking
distance of All Aboard Florida's Central Station, a Brightline train that transports riders from Fort
Lauderdale to Miami in 28 minutes; which will also spur additional development in the City.
Brightline is part of the newly built 11-acre mix -use MiamiCentral development. It is in the heart of
Downtown Miami. MiamiCentral spans over six downtown City blocks and features retail shops,
rental residences and a transit hub providing both local and multi -city transit options. MiamiCentral
offers a way to connect with Miami's most popular transportation systems. With Metrorail,
Metromover, Tri-Rail and Brightline all converging in the heart of Downtown Miami, locals and
visitors will experience a variety of transit options. Within the Miami Central station complex, All
Aboard Florida's Brightline passenger train will connect Orlando to downtown Miami.
Local Government Financial
Trend
The table below summarizes
over the last four fiscal years.
discussed further in this letter
Revenues and Transfers in
Expenditures and Transfers Out
Net Change in Fund Balance 27,320,133
Beginning Fund Balance 160,143,418
Ending Fund Balance $ 187,463,551
and compares General Fund revenues and expenditures and transfers
Some of the reasons for these trends are actions taken by the City and
under the heading of Long -Term Financial Planning.
Summary of General Fund Financial Results
by fiscal year
2018 2017
$ 745,204,594
717,884,461
$ 706,823,792
678,201,723
2016 2015
$ 643,541,725 $ 604,639,526
659,425,088 569,657,401
28,622,069 -15,883,363 34,982,125
131, 521, 3 49 147,404, 712 112,422,587
$ 160,143,418 $ 131,521,349 $ 147,404,712
Employment & Wealth Demographics
The following information was reported by the Bureau of Labor Statistics and the United States
Census Bureau. The table provides Miami demographics compared to the State of Florida and the
United States.
Unemployment Rate
Median Household Income
Persons Below Poverty Level
High School Graduate or Higher
Bachelor's Degree or Higher
United
Miami Florida States
3.3% 3.4%
$ 33,999 $ 50,883
25.8% 14.0%
75.6% 87.6%
26.3% 28.5%
3.8%
$ 57,652
12.3%
87.3%
30.9%
8
Tourism
Miami is a major tourism hub and ranks second in the nation, after New York City, for international
visitors. The City holds major annual events that attract visitors from across the country and world.
These annual events include the Miami Open, Miami Marathon, Art Basel, Miami International Boat
Show, Calle Ocho Festival, Bayfront Park New Year's Eve Celebration, and the Ultra Music
Festival.
In 2020, Miami -Dade County will host the Super Bowl and the event is expected to have a profound
effect on the local economy pouring in money into restaurants, hotels, transportation and local
vendors.
Miami International Airport
The Miami International Airport ("MIA") is operated by the Miami -Dade Aviation Department and
is property of the Miami -Dade County government. MIA reported a total of 44.9 million passengers
for fiscal year 2018, representing a 2.7% increase from the 43.7 million passengers reported in fiscal
year 2017. MIA remains the premier international gateway to Florida welcoming 60 percent of all
international visitors to Florida. In addition, MIA offers more flights to Latin America and the
Caribbean than any other U.S airport and serves as the countries number one airport for international
freight, transporting a total of 2.3 million tons in fiscal year 2018.
PortMiami
PortMiami, ("the Port") known as the "Cruise Capital of The World," is operated by the Seaport
Department of Miami -Dade County. The Port continues to be the world's busiest cruise port and
serves as a hub for Caribbean and Latin American commerce. The Port is among America's busiest
ports and recognized as a global gateway. The Port is important to Miami Dade County and
surrounding areas, contributing more than $43 billion in economic activity and generating 334,500
direct, indirect and induced jobs.
The Port includes seven cruise terminals that have been designed to quickly move passengers from
land to sea. The Port is the closest U.S. East Coast Deepwater container port to the Panama Canal,
providing shippers fast access to the entire U.S. market. For the 2018 calendar year, the Port
reported 5.6 million passengers and 1.0 million of twenty -foot equivalent units of containerized
cargo (TEUs) activity.
Long -Tern: Financial Planning and Major Initiatives
To stabilize the fmancial management of the City's resources and focus on the long-term
sustainability, while addressing immediate issues and concerns raised by the changing economic
climate and drivers within the community, challenging but necessary decisions were required to be
made.
9
Financing
During FY2018, the City successfully partially refunded the $59.3 million Special Obligation Bond,
Series 2011A. The City also partially refunded the $16.6 million Taxable Special Obligation, Special
Obligation Bond Series 2010B and $7.2 million Taxable Pension Special Obligation Bond, Series
2009. In addition, the City obtained a $11.3 million Lease from Santander Bank, N.A. to replace
police fleet vehicles, $373.9 thousand lease from Dell Financial to upgrade technology equipment,
and, $2.3 million loan from the State of Florida for the Wagner Creek Seybold Canal Project. See
Note 8 Long -Term Debt.
Forthcoming, the City of Miami voters approved the $400 million general obligation Miami Forever
Bond in November 2017. The Bond will fund a series of projects that will transform the future of
Miami in five key categories: Sea -Level Rise and Flood Prevention ($192M), Roadway
Improvements ($23M), Parks and Cultural Facilities ($78M), Public Safety ($7M) and Affordable
Housing ($100M). In December 2018, The City Commission approved a proposed list of projects for
the first tranche in the total maximum principal amount of $58.6 million.
Major Initiatives
Miami is a modern and diverse city that is a global leader in technology, innovation and resiliency.
The City of Miami is committed to elevating the quality of life of its residents by improving public
safety, housing, mobility, diverse shared spaces that foster community, and efficient and transparent
government. To achieve this mission, the City of Miami ensures operations are strategically aligned
across the organization by developing a Strategic Plan that sets forth priorities that the City will
accomplish with public resources.
Some of the major objectives included by priority area are:
Public Safety
The ShotSpotter gunfire detection system, which utilizes sensors across deployment areas to identify
outdoor firearms discharge was approved by City Commission to expand an additional 10 miles
since first installed in 2014. The technology is currently installed in Liberty City, Little Haiti,
Overtown and Park West. The expansion would cover Coconut Grove, Little Havana, Allapattah,
Model City, Upper Eastside and Downtown. Since its inception, it has been reported that the City's
homicide rate has decreased by over 30 percent due to the implementation of the ShotSpotter
technology.
Housing
As noted earlier, in November 2017, the Miami voters approved $400 million general obligation
bond to build a stronger, more resilient future for Miami. $100 million of the bonds is allocated to
affordable housing programs. $15 million was recently approved in the first tranche to include
funding for the construction and permanent financing for the development of MLK Residences and
Liberty Renaissance. The affordable housing program types include:
• Affordable Workforce New Rental Strategy which will provide construction and permanent
financing to assist with development of affordable multifamily rental projects to Workforce
development income levels;
10
• Homeownership Preservation Strategy will provide rehabilitation assistance to the City
homeowners, with repairs necessary in bringing the home to decent, safe and sanitary
conditions;
• City Acquisition of Land will provide funding for the City to acquire buildable vacant parcels
of land suitable for mixed use/mixed income affordable rental or homeownership
developments;
• Affordable Homeownership Strategy will provide construction and permanent finance to
assist with development of affordable single-family units, townhomes and condominiums to
eligible individuals and families;
• Affordable Rental Housing Preservation Strategy will provide construction and permanent
fmancing to assist with the rehabilitation/preservation of existing affordable multifamily
rental projects; and
• Affordable New Construction Rental Strategy will provide construction and permanent
financing to assist with the development of affordable multifamily rental projects containing
units affordable to Extremely Low Income, Very Low Income, Low Income and Workforce
Development income level individuals and families.
Mobility
As planned, the Underline project broke ground in the Fa112018. The project combines green public
spaces with paths that connect to transit stations, fully separated from the adjacent street. The
Underline will transform the land below Miami's Metrorail into a 10-mile linear park, urban trail and
living art destination. The City of Miami has pledged $50 million of impact fees collected in the
respective districts for the park, which will benefit residents living both in the City and the
surrounding areas.
In May 2018, the City Commission approved to expand the free Miami Trolley services to add a new
Flagami route. By adding a Flagami Route, the overall efficiency of travel for all residents, tourists,
and commuters within the Flagami area will increase the overall efficiency of travel. The route
operates six (6) days a week at an estimated cost of $1.2 million a year.
Efficient and Transparent Government
The City officially launched its Safe City Initiative in March 2018. The goal of this collaborative
effort is to create green, safe and clean neighborhoods. Unsafe and abandoned structures have been
demolished or cleared, ridding these locations of illicit activities and allowing for housing
redevelopment in the respective areas. Through task force inspections, landlords are being held
accountable to ensure safe and sanitary living conditions within the City's residential areas.
11
Capital Improvement Plan
The City's six -year Capital Improvement Plan has earmarked funding estimated at approximately
$622.3 million for 876 projects, 548 active and 328 future projects.
City Funds represent the largest share of funding in the Capital Plan, accounting for 65.9 percent of
overall Plan funds. City Bonds represent the second largest funding source, accounting for 22.7
percent of the Plan's funding. Sources derived from State Grants represent 4.4 percent of the Plan.
The remaining 7.0 percent of funding are from Federal, Local Units and Private Donations sources.
The tables below summarize the revenues by type and the expenditures by fund within the Capital
Improvement Plan:
Capital Improvement Program
Revenue by Type
Description
City Funds
City Bonds
Private Donations/Other
State Grants
Federal Grants
Miami -Dade County Grants
Other Local Units
Total
Amount Percent
$ 410,304,000 65.9%
140,992,000 22.7%
4,802,000 0.8%
27,207,000 4.4%
4,365,000 0.7%
25,302,000 4.1%
9,296,000 1.5%
$ 622,268,000
Capital Improvement Program
Expenditures by Fund
Description
Streets and Sidewalks
Disaster Recovery
General Government
Mass Transit
Parks and Recreation
Public Facilities
Public Safety
Sanitary Sewers
Solid Waste
Storm Sewers
Total
Amount Percent
$ 133,568,000 21.5%
1,567,000 0.3%
60,988,000 9.8%
1,219,000 0.2%
201,786,000 32.4%
97,614,000 15.7%
44,064,000 7.1%
10,591,000 1.7%
3,049,000 0.5%
67,822,000 10.9%
$ 622,268,000.
12
Relevant Financial Policies
The City has adopted a comprehensive set of financial policies. The policies are described below.
Debt Management Policy
The City adopted a revised Debt Management Policy on May 26, 2016, to provide guidance
governing the issuance, management, continuing evaluation of and reporting on all debt obligations
issued by the City. Additionally, the Policy will provide guidance for the preparation and
implementation necessary to assure compliance. It is the responsibility of the Finance Committee to
review and make recommendations regarding the issuance of debt obligations and the management
of outstanding debt. The Finance Committee shall consist of seven voting members, consisting of
five members from the local business community appointed by the City Commission, the Mayor or
his designee, and the City's Finance Director as the City Manager's designee. Others who may be
present at meetings of the Finance Committee to provide technical expertise and advice shall include
representatives from the City Attorney's office, the Budget Department, the Department to which the
proposed debt may relate, the City's Financial Advisor, Bond Counsel and Disclosure Counsel.
Meetings will be open to all interested parties and official minutes will be taken and copies made
available upon request to the City Clerk
The City's Finance Committee will consider all issues related to outstanding and proposed debt
obligations, and will vote on issues affecting or relating to the credit worthiness, security and
repayment of such obligations, including but not limited to procurement of services, structure,
repayment terms and covenants of the proposed debt obligation, and issues which may affect the
security of the bonds and ongoing disclosure to bondholders and interested parties.
The following policies concerning the issuance and management of debt were established in the Debt
Management Policy: (a) the City will not issue debt obligations or use debt proceeds to finance
current operations, (b) the City will utilize debt obligations only for acquisition, construction or
remodeling of capital improvement projects that cannot be funded from current revenue sources or in
such cases wherein it is more equitable to the users of the project to finance the project over its useful
life, (c) the City will measure the impact of debt service requirements of outstanding and proposed
debt obligations on single year, five, ten and twenty-year periods. This analysis will consider debt
service maturities and payment patterns as well as the City's commitment to a pay as you go
budgetary capital allocation, (d) the City will evaluate the long-term operational impact of capital
projects to the City's budget and five-year financial plan. Each proposed debt issuance will be
accompanied by a statement from the City Manager stating the estimated operational impact of the
project being financed, and (e) the City may periodically refinance debt to take advantage of lower
interest rates which will result in a Present Value Savings. The City may issue current refunding
bonds that result in a minimum of three percent (3%) Net Present Value savings, and advance
refunding bonds that result in a minimum of five percent (5%) Net Present Value savings. Refunding
bonds shall not extend the final maturity of the bonds being refunded. If the present value savings is
less than the threshold, or will result in a present value loss, and/or the maturity is greater than the
maturity on the debt obligations to be refunded, the City may issue or enter into refunding Debt
obligations but only after a finding by the Commission that a compelling public policy objective
13
would be achieved by the refunding, such as eliminating restrictive bond covenants or providing
additional financial flexibility. The Commission's findings may be based on a report presented with
the legislation authorizing the refunding.
The following other provisions shall be applicable to the City each time it considers a debt issuance:
(a) the City will issue debt obligations for acquiring, constructing or renovating Capital
Improvements or for refmancing existing debt obligations. Projects must be designed as public
purpose projects by the City Commission prior to funding, and (b) all debt obligations shall have a
maximum maturity of the earlier of: (i) the estimated useful life of the Capital Improvements being
financed; or, (ii) thirty years: or, (iii), in the event they are being issued to refmance outstanding debt
obligations the final maturity of the debt obligations being refinanced, unless a longer term is
recommended by the Finance Committee.
As the City periodically addresses its ongoing needs, the City Manager and the City Commission
must ensure that the future elected officials will have the flexibility to meet the capital needs of the
City. Since neither State law nor the City Charter provides any limits on the amount of debt, which
may be incurred (other than the requirement to have General Obligation debt approved in advance by
referendum), this policy establishes the following targets and limits which at the same time provide
future flexibility: (a) debt service as a percentage of Non -Ad Valorem general fund revenues: less
than or equal to 15%; (b) net debt per capita: less than or equal to $2,000; and (c) net debt to taxable
assess value: less than or equal to 5%.
Investment Management Policy
The City adopted a detailed written investment policy on February 26, 2015, that applies to all cash
and investments held or controlled by the City and identified as "general operating funds." The
Investment Policy does not apply to the City's Pension Funds, Deferred Compensation & Section
401(a) Plans, and funds related to the issuance of debt where there are other existing policies or
indentures in effect for such funds. Additionally, any future revenues which have statutory
investment requirements conflicting with the City's Investment Policy, and funds held by State
agencies (e.g. Department of Revenue) are not subject to the provisions of the policy.
The primary objective of the investment program is the safety of the principal of those funds within
the portfolios. Investment transactions shall seek to keep capital losses at a minimum, whether they
are from securities defaults or decline of market value. To attain this objective, diversification is
required so that potential losses on individual securities do not exceed the income generated from the
remainder of the portfolio. The portfolios are required to be managed in such a manner that funds are
available to meet reasonably anticipated cash flow requirements in an orderly manner. Return on
Investment is of least importance compared to the safety and liquidity objectives described in the
policy.
The policy stipulates that in accordance with the City's Administrative Policies, the responsibility for
providing oversight and direction regarding the management of the investment program resides with
the City's Finance Director, designee or investment advisor approved by the City Commission. The
City Manager shall delegate to the Finance Director the responsibility for setting or adjusting policies
14
and overseeing the City's investments and investment activities. The active management of the
City's investments shall be the responsibility of the City's Finance Director, or he may delegate such
responsibility, in whole or in part, to Treasurer or Assistant Finance Director or, subject to the
approval of the City Commission, an investment advisor experienced in municipal finance that is
registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934.
The City may employ an investment advisor to assist in managing some or all of the City's
portfolios. Such investment advisor must be registered with the Securities and Exchange
Commission under the Investment Advisors Act of 1940.
Subject to the exceptions in the City's investment policy, the City may invest in the following types
of securities: (a) The Florida Local Government Surplus Funds Trust Fund, (b) United States
Government Securities, (c) United States Government Agencies, (d) Federal Instrumentalities, (e)
Interest Bearing Time Deposit or Savings Accounts, (f) Repurchase Agreements, (g) Commercial
Paper, (h) Corporate Notes, (i)Municipal Securities, (j) Registered Investment Companies (Money
Market Funds), (k) Intergovernmental Investment Pool, (1) Agency Mortgage -Backed Securities, (m)
Asset -Backed Securities, (n) Supranationals and (o) Foreign Sovereign Governments.
For the year ending September 30, 2018, the City has complied with its Investment and Debt
Management Policies.
The investment policy is adopted by City Resolution. The Finance Director, Treasurer, and the
Investment Committee shall review the policy annually and the City Commission shall approve any
modifications made thereto.
Financial Integrity Principles
On February 10, 2000, the City enacted Ordinance No. 11890 ("Financial Integrity Ordinance")
establishing thirteen fmancial integrity principles. The Financial Integrity Ordinance was enacted as
a preventative measure setting forth financial practices that would prevent the recurrence of a
financial emergency.
The Financial Integrity Ordinance requires the City to establish three reserves: (1) a "contingency"
reserve of $5 million to fund unanticipated budget issues which arise for potential expenditure
overruns which cannot be offset through other sources or actions; (2) an "unassigned" fund balance
reserve equal to ten percent of the prior three years average of general revenues (excluding transfers
and including the contingency reserves in (1) above) to fund unexpected mid -year revenue shortfalls
or for an emergency such as a natural or man-made disaster, which threatens the health, safety and
welfare of the City's residents, businesses or visitors; and (3) the "designated" reserve equal to ten
percent of the prior three years average of general revenues (excluding transfers) to fund long-term
liabilities and commitments of the City, such as compensated absences, self-insurance plan deficits
and anticipated adjustments in pension plan payments resulting from market losses. "Designated"
fund balance shall be classified as either restricted, committed, or assigned based on standards and
guidance established by the Governmental Accounting Standards Board (GASB).
15
For the 2018 fiscal year, the City's General Fund reserves increased by approximately $27.5 million
and had an ending fund balance of approximately $187.5 million. Of the ending fund balance,
approximately $82.9 million is restricted, approximately $2.1 million is non -spendable,
approximately $38.0 is assigned, which includes the $5.0 million Required Contingency Reserve,
and approximately $64.4 million is unassigned. The City is in accordance with the Financial Integrity
Ordinance which requires a minimum General Fund balance equal to 20 percent (10% Designated
and 10% Unassigned) of the prior three years average of general revenues (excluding transfers),
which equates to $64.4 million for both "Designated" and "Unassigned" for the 2018 fiscal year.
The City's five-year forecast projects that revenues will not grow as fast as anticipated expenditures.
Revenues are forecasted to grow by a total of 16.6 percent, while expenditures are projected to grow
by a total of 17.4 percent. However, in FY 2022-23 the City is currently not projected to meet the
FIP requirement due to current Collective Bargaining Agreements. The ultimate course will be
determined by the City Commission in its review, consideration, and ultimate approval of future
budgets submitted by the Administration.
Failure to comply with the Financial Integrity Ordinance is not an event of default under the
Ordinance. The City will strive to come into compliance with the Ordinance. However, there can be
no assurance that the General Fund Reserves will reach or be maintained at the level required by the
Financial Integrity Ordinance. The City continues to recommend balanced budgets, including
recommendations to restore General Fund Reserves to required levels as quickly and as reasonably
as possible.
Risk Management — Self Insurance Program
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 City also offers
to its retirees comprehensive medical coverage and life insurance benefits through its self-insurance
plan.
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. The City allows for cost allocation of
pension, health insurance and worker's compensation benefits in the operating departments and a
centralized account from which payments are made.
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, 2017. 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 team.
16
In order to be awarded a Certificate of Achievement, the government had to publish an easily
readable and efficiently organized CAFR that satisfied both generally accepted accounting principles
and applicable program requirements. A Certificate of Achievement for Excellence in Financial
Reporting is valid for a period of one year only. We believe that our current CAFR continues to meet
the Certificate of Achievement for Excellence in Financial Reporting Program's requirements, and
we are submitting it to the GFOA to determine its eligibility for another certificate.
The City of Miami also received the GFOA's Distinguished Budget Presentation Award for its
annual budget document for the fiscal year beginning October 1, 2017. To qualify for the
Distinguished Budget Presentation Award, the government's budget document had to be judged
proficient as a policy document, a fmancial plan, an operations guide, and a communications device.
Acknowledgements
The preparation of this report would not have been possible without the skill, effort, and dedication
of the entire staff of the Finance Department. The year-end closing, the audit, and compiling and
publishing the CAFR could not have been accomplished without hard work, commitment and
personal sacrifice.
We wish to thank all government departments for their assistance in providing the data necessary to
prepare 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. Lastly, we wish to express our
appreciation to the City's General Services Administration for the reproduction of this report.
Respectfully submitted,
Emilio T. Gonzalez
City Manager
Sandra Bridgeman, CPA
Assistant City Manager/CFO
Erica T. Paschal, CPA
Finance Director
17
Government Finance Officers Association
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, 2017
Executive Director/CEO
18
19
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20
II Ell
Independent Auditor's Report
The Honorable Mayor and Members of the City Commission
City of Miami, Florida
RSM
RSMUSLLP
Report on the Financial Statements
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, 2018, and the related
notes to the financial statements, which collectively comprise the City's basic financial statements as
listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not
audit the financial statements of the following component units and funds:
Component Units / Funds
Classification
• Southeast Overtown Park West Redevelopment Agency
• Omni Redevelopment Agency
• Midtown Community Redevelopment Agency
• 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
• Coconut Grove Business Improvement District
• Wynwood Business Improvement District
THE POWER OF BEING UNDERSTOOD
AUDIT I TAX I CONSULTING
21
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
discretely presented component unit
RN USLLPIsthe U.S.mnYerfirm clIZR,46nterr Toni e> d)..InetvrofE of IndepextentavStzx,end certatttZr
tt93 hbensA 21
..-avltratnutuet rraretVormabal ivEssing RStitUSLtPaW
The component units and funds represent the percentage of assets/deferred outflow of resources and
revenue/additions, where applicable, of the respective opinion units listed below:
Percentage of,
Total Assets/Deferred Total
Reporting Classification Outflow of Resources Revenues/Additions
• Governmental Activities 5% 5%
• Discretely Presented Component Units 21% 34%
• Aggregate Remaining Fund Information 88% 75%
Those statements were audited by other auditors whose reports have been furnished to us, and our
opinion, insofar as it relates to the amounts included for the funds and component units referred to above,
are based solely 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 from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
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, 2018, and the respective
changes in financial position for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Emphasis of Matter
As discussed in Note 1 to the accompanying financial statements, the City adopted the recognition and
disclosure requirements of Governmental Accounting Standards Board Statement No. 75, Accounting
and Financial Reporting for Postemployment Benefits Other Than Pensions effective October 1, 2017.
The net position of the governmental activities as of October 1, 2017 has been restated. Our opinion is
not modified with respect to this matter.
As discussed in Note 15 to the accompanying financial statements, the net position of the aggregate
remaining fund information for the employee retirement funds as of October 1, 2017 has been restated.
Our opinion is not modified with respect to this matter.
22
22
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, budgetary comparison schedules, and other postemployment benefits and
pension related schedules as listed in the table of contents be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is required
by the Governmental Accounting Standards Board who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or historical
context. We and other auditors have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of America,
which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
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 are the responsibility of
management and was derived from and relates directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United
States of America by us and other auditors. In our opinion, based on our audit, the procedures performed
as described above, and the reports of the other auditors, the combining and individual fund statements
and schedules is fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements, and accordingly, we do not express an opinion or provide any
assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
March 29, 2019, under separate cover, on our consideration of the City's internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements and other matters. The purpose of that report is solely 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 effectiveness of the City's internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the City's internal control over financial reporting and compliance.
s,1( vs -UP
Miami, Florida
March 29, 2019
23
23
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24
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, 2018. 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 5 —
17 of this report.
Financial Highlights
• The liabilities and deferred inflows of resources of the City exceeded its assets and deferred outflows of
resources at the close of the 2018 fiscal year by approximately $629.47 million (net position deficit).
• The City total net position increased in fiscal year 2018 by $49.33 million compared to a decrease in net
position of $171.25 million during fiscal year 2017. Total revenues exceeded total expenses in the
current year primarily due to increases in capital grants and contributions and investment earnings and
decreases in expenses related to general government, public safety and interest on long-term debt
• At the close of the current fiscal year, the City's governmental operating fund (General Fund) reported
a fund balance of approximately $187.46 million, an increase of approximately $27.32 million in
comparison with the prior year.
• The City's total outstanding long-term liabilities had a net increase of approximately $143.78 million
during the current fiscal year primarily due to an increase in claims payable and net OPEB liabilities.
Overview of Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements.
The City's basic financial statements are comprised of three components: 1) government -wide financial
statements 2) fund financial statements, and 3) notes to the financial statements. This report also contains
other supplementary information in addition to the basic financial statements themselves.
Government -Wide Financial Statements
The government -wide financial statements are designed to provide readers with a broad overview of the
City's finances, in a manner similar to private -sector business.
The focus of the statement of net position presents financial information on all of the City's assets and
liabilities, and deferred inflows/outflows of resources with the difference reported as net position (deficit).
Over time, increases or decreases in net position may serve as a useful indicator of whether the fmancial
position of the City is improving or deteriorating.
The statement of activities presents information showing how the City's net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise
to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are
reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes
and earned but unused vacation leave). The information is presented with the intent to summarize and
simplify the user's analysis of the cost for the primary government and its component units' governmental
activities.
Both of the government -wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities). The governmental activities
of the City include general government, planning and development, community development, community
redevelopment areas, public works, public safety, public facilities, and parks and recreation.
25
CITY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2018
The government -wide fmancial statements include not only the City itself (known as the primary
government), but also its discretely presented component units, which are other governmental units over
which the City can exercise influence and/or may be obligated to provide financial subsidies . Financial
information for these component units is reported separately from the financial information presented for
the primary government itself. The blended component units, although legally separate, function for all
practical purposes as departments of the City, and therefore have been included as an integral part of the
primary government.
The government -wide financial statements can be found on pages 38-39 of this report.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds
of the City can be divided into two categories: governmental funds and fiduciary funds.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government -wide financial statements. However, unlike the government -wide fmancial
statements, governmental fund financial statements focus on near -term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal year. Such
information may be useful in assessing a government's near -term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements,
it is useful to compare the information presented for governmental funds with similar information presented
for governmental activities in the government -wide financial statements. By doing so, readers may better
understand the long-term impact of the government's near -term financing decisions. Both the governmental
fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund
balances provide a reconciliation to facilitate this comparison between governmental funds and
governmental activities.
The City maintains thirty-five individual governmental funds. Information is presented separately in the
governmental fund balance sheets and in the governmental fund statements of revenues, expenditures and
changes in fund balances for the general fund, special obligation bonds debt service fund, other capital
projects fund, and impact fee fund, which are considered major funds. Data from the other thirty
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 in the combining and
individual fund statements and schedules section of 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, special revenue funds and
debt service funds.
The basic governmental fund financial statements can be found on pages 40-43 of this report.
26
CITY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2018
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary
funds are not reported in the government -wide financial statements because the resources of those funds are
not available to support the City's own programs and operations.
The basic fiduciary fund fmancial statements can be found on pages 44-45 of this report.
Notes to the Financial Statements
The notes provide additional information that is necessary to acquire a full understanding of the data
provided in the government -wide and fund financial statements. The notes to the fmancial statements can
be found on pages 50-145 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 145-159 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 165-178 of this report.
Government -Wide Overall Financial Analysis
As noted earlier, net position over time may serve as a useful indicator of a government's fmancial position.
In the case of the City, the assets and deferred outflows of resources was lower than liabilities and deferred
inflows of resources by $629.47 million at the close of the most recent fiscal year, resulting in a net position
deficit. The City's net position reflects its investment in capital assets (e.g. infrastructure, land, buildings,
machinery and equipment); net of accumulated depreciation, less any related debt used to construct or
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 are typically not used to liquidate these
liabilities. As of September 30, 2018, the City's net investment in capital assets was approximately $578.09
million.
An additional portion of the City's net position represents resources that are subject to restrictions on how
they may be used. As of September 30, 2018, the City's portion of restricted net position was approximately
$358.41 million.
The remaining portion represents an unrestricted net deficit of approximately $1.57 billion, which is
primarily due to outstanding borrowings for which there are no off -setting assets, along with an increase in
claims payable, net pension liability, and OPEB liability.
27
CITY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2018
At the end of the current fiscal year, the City's net position (deficit) decreased from net position deficit of
approximately $678.80 million to approximately a net position deficit of $629.47 million. The reasons for
this overall decrease are discussed in the following sections for governmental activities.
The following schedule reflects a summary of the statement of net position compared to the prior year:
Assets
Current and other assets
Capital Assets
Total Assets
Deferred Outflows of
Resources
Other Liabilities
Long -Term Liabilities
Total Liabilities
Deferred Inflows of
Resources
Net Position (Deficit):
Net Investment in
Capital Assets
Restricted
Unrestricted (Deficit)
Total Net Position
(Deficit)
Summary Statement of Net Position (Deficit) as of
September 30, 2018 and 2017
Governmental Activities
2018 2017
$ 757,464,172
1,113,240,897
1,870,705,069
222,220,447
240,309,985
2,345,727,412
2,586,037,397
136,356,671
$ 704,559,791
1,129,305,020
1,833,864,811
111,190,591
215,550,534
2,201,951,781
2,417,502,315
33,279,788
Change
Change ($) (%)
$ 52,904,381
(16,064,123)
36,840,258
111,029,856
24,759,451
143,775,631
168,535,082
103,076,883
7.51%
-1.42%
2.01%
99.86%
11.49%
6.53%
6.97%
309.73%
578,092,580
358,414,955
(1,565,976,087)
$ (629,468,552)
627,800,618
297,600,108
(1,431,127,427)
$ (505,726,701)
(49,708,038)
60,814,847
(134,848,660)
-7.92%
20.44%
9.42%
$ (123,741,851) 24.47%
28
CITY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2018
The following table provides a summary of the City's changes in the statement of net position (deficit) for
the fiscal years ended September 30, 2018 and 2017:
Revenues:
Program revenues
Charges for Services
Operating Grants and Contributions
Capital Grants and Contributions
General revenues:
Property Taxes
Franchise Taxes
State Revenue Sharing - Unrestricted
Sales and Other Use Taxes
Public Service Taxes
Investment Earnings/(Losses) -
Unrestricted
Total Revenues
Expenses:
General Government
Planning and Development
Community Development
Community Redevelpment Areas
Public Works
Public Safety
Public Facilities
Parks and Recreation
Interest on Long -Term Debt
Changes in Net Position (Deficit)
Governmental Activities
2018 2017 Change (S) Change (%)
$ 274,602,207 $
95,524,077
9,069,762
397,247,874
49,741,913
16,380,921
35,786,997
64,250,989
9,681,342
263,222,830 $
81,114,292
1,078,796
363,439,702
49,207,879
15,687,260
33,521,269
62,532,940
11,379,377 4.32%
14,409,785 17.76%
7,990,966 740.73%
33,808,172 9.30%
534,034 1.09%
693,661 4.42%
2,265,728 6.76%
1,718,049 2.75%
4,544,604 5,136,738 113.03%
952,286,082
190,825,241
22,721,335
28,371,102
35,272,784
123,517,711
387,651,947
22,371,164
66,817,655
25,405,481
874,349,572
77,936,510 8.91%
174,982,174 15,843,067 9.05%
19,462,678 3,258,657 16.74%
29,443,452 (1,072,350) -3.64%
34,616,272 656,512 1.90%
95,595,175 27,922,536 29.21%
579,366,645 (191,714,698) -33.09%
19,086,773 3,284,391 17.21%
63,380,712 3,436,943 5.42%
29,663,407 (4,257,926) -14.35%
Total Expenses 902,954,420 1,045,597,288 (142,642,868) -13.64%
Change in Net Position 49,331,662 (171,247,716) 220,579,378 -128.81%
Net Position (Deficit) - Beginning (678,800,214) (334,478,985) (344,321,229) 102.94%
Net Position (Deficit) - Ending $ (629,468,552) $ (505,726,701) $ (123,741,851) 24.47%
*The City implemented GASB statement 75 as of October 1, 2017.
*The information was not available to implement the restatement for the prior periods presented in the MD&A.
Governmental Activities
As noted earlier, the City's net position increased by approximately 49.33 million compared to prior fiscal
year. The major changes are as follows:
Total revenues for governmental activities increased over the prior year and were greater than the total
expenses for the governmental activities. Specifically, the charges for services and property taxes increased
29
CITY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2018
over the prior year by $ 11.38 million and $33.80 million, respectively. The charges for services and
property tax increases reflect the economic recovery in the City. Strong growth in the construction industry
resulted in increased permit fees and assessments, which are included in charges for services. Property taxes
increased 9.30 percent, which is primarily attributed to an increase in property values.
Other significant increases in revenue are primarily attributed to increases in operating grants and
contributions and capital grants and contributions. The increase in operating grants and contributions of
$14.41 million is the result of increases in funding received in the current year relative to the prior year;
primarily related to an increase in Public Works. The increase in capital grants and contributions of $7.99
million is the result of increases in funding received in the current year relative to the prior year; primarily
related to State funding for Wagner Creek and Seybold Canal projects and funding from Miami -Dade
County for capital improvements citywide including Coconut Grove BID and streets and sidewalks related
projects.
Revenues from investment earning also increased over the prior year by $5.14 million (or 113 percent)
primarily due to increases in the federal interest rate from 1.00 — 1.25 percent as of September 2017 to 2.00-
2.25 percent as of September 2018.
During fiscal year 2018, expenses for governmental activities decreased by $142.64 million. Expenses for
Public Safety experienced the most significant decrease of $191.71 million or 33.09 percent during the
current fiscal year. This decrease is primarily due to implementation of GASB Statement No. 75 which
required the City to restate the net position and to report a total OPEB liability, related deferred outflows of
resources and OPEB expenses for the OPEB plan and a change in benefits that resulted in a $122 million
reduction in expenses. The change resulted from settlements entered into between the City and the
Firefighters and Police Officers Retirement Trust (FIPO).
The City's interest expense also decreased $4.26 million when compared to last fiscal year due to
defeasance of certain debt involving advance refunding.
Planning and Development, Public Works, and Public Facilities expenses increased by $3.26 million,
$27.92 million, and $3.28 million, respectively. The increase in Planning and Development expenses is
mainly attributed to renovation of the Building Department at the Miami Riverside Center. The increase in
expenses for Public Works is mainly due to Hurricane Irma debris removal. The increase in Public Facilities
expenses is mainly attributed to a reconciliation settlement agreement with Hyatt Regency.
30
CITY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2018
The following charts provide a visual representation of the expenses and revenues for the governmental
activities for fiscal year ended September 30, 2018:
$450,000,000
5400,000,000
$350,000,000
Expenses and Program Revenues- Governmental
Activities
5300,030,000 .....,.._
$250,000,000
$200,000,000
$150,000,000
$ ioo,000,000
$50,000,000
$ ... _I■��_....._�� __..._.� _ ■�. �� ■1 __.._�_ ■ .._...
Fe�� Feces F�cL P`¢a� ° `� a``e ``•`�ey a�°t` ¢�e�
o°ems ,¢\°Q �\°Q ¢c� �`yV�``� L<Ca° eC. �`c�
e`a•0 it
ode ae° QJ QJ e�4` 2fy�� ci\�\
p �� .) e a `
C,e Q\af• �� *t' Q
G° c
cs"J
(,0
IN Expenses It Revenues
REVENUE BY SOURCE - GOVERNMENTAL ACTIVITIES
Sales and other use_
taxes, 3.76%
Franchise taxes, 5.22%
Property taxes, 41.72%
State revenue sharing -
unrestricted, 1.72% -
Public services tax,
6.75%
Capital grants and
contributions, 0.95%
Investment earnings -
unrestrkted, 1.02%
Charges for services,
28.84%
__ Operating grants and
contributions, 10.03%
31
CITY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2018
Financial Analysis of Governmental Funds
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, unassigned 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, the City's
total General Fund balance was $187.46 million. Of this amount, the City has approximately $123.05
million retained as designated fund balance, which includes 82.88 million as restricted, approximately
$2.15 million is recorded as non -spendable for prepaid expenses, approximately $38.02 million is
designated as assigned fund balance, and approximately $64.41 million is unassigned fund balance in
accordance with the City's Financial Integrity Ordinance.
The General Fund's fund balance had a net increase of approximately $27.32 million during the current
fiscal year. Although revenues saw an increase of $44.79 million, expenditures also increased by $27.68
million and transfers in decreased by $5.90 million. Significant revenue increases included property taxes
(10.3 percent) and intergovernmental revenues (4.53 percent). These revenue increases reflect an
improvement in the local economy which appears to have now fully recovered. Investment earnings also
increased significantly (94.5 percent) reflecting an improvement in market conditions and higher federal
interest rates. Expenditure increases are seen in the general fund functions, General Government, Planning
and Development, Public Works, and Public Safety. In each of these areas the increased expenditures are
primarily attributed to increases in retirement contributions and payroll related expenditures.
Financial highlights of the City's other major governmental funds are as follows:
The Impact Fee Fund has a fund balance of $88.45 million. The increase in fund balance of $7.61 million
from the prior year resulted primarily from impact fees associated with an increase in High Rise Residential
Units.
The Other Capital Project Fund has a fund balance of $141.14 million. This represents an increase of
approximately $25.30 million. The increase can be attributed to issuance of debt to fund the vehicle lease
program and transfers from the General Fund to fund capital projects.
The Emergency Services Fund has a fund balance of approximately $17.47 million deficit. This represents a
decrease of approximately $17.25 million. The decrease is attributed to expenditures related to Hurricane
Irma.
32
CITY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2018
General Fund Budgetary Highlights
The FY2018 Adopted Budget maintains funding for current City services, and allows for expanded services
in some categories while lowering the overall millage rate from 8.2900 to 8.0300. The Adopted Budget
includes a lowered overall property tax rate for the seventh year in a row and funds certain strategic
enhancements without reducing services.
The FY2018 City's Adopted General Fund Budget totaled approximately $726.8 million. During the fiscal
year, the general fund budget was amended at mid -year and at year-end. These amendments increased the
previously adopted budget by approximately $ 8.9 million to a revised total of approximately $ 735.7
million. This increase in the general fund is primarily due to higher than budgeted expenditures in a few
departments and the allocation of additional resources to Capital. Capital highlights from the FY2018
Adopted Budget included $24 million of new funding for parks including : the Underline, Virginia Key
Northpoint Park, and Little Haiti Cultural Complex, among others, Citywide repairs, replacements, and
remodeling; $15 million of Technology Projects including $12 million for the First Responder Radio
System and $2 million to modernize and make safe the City's data servers; and funding to purchase new
vehicles and heavy equipment for the Fire -Rescue, Police, Solid Waste, and Public Works Departments.
The City of Miami utilizes a five-year financial forecast to assist with the strategic decision process and to
identify and prepare for future challenges. The Five -Year Financial Forecast projects that revenues will not
grow as fast as anticipated expenditures over the forecast period. Overall, general fund revenues are
projected to grow by 16.6 percent over the next five years and general fund expenditures are projected to
grow by 17.4 percent over the same period. With the projected fund balance of $195.063 million for
FY2018-19, the City will meet the Financial Integrity Principle (FIP) requirement estimated for that year.
However, in FY2021-22 the City is currently not projected to meet the FIP requirement. The City's
Administration is committed to continuing to restore fund balance levels over time to achieve compliance
with the reserve policies outlined in the Financial Integrity Ordinance.
33
CITY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2018
Capital Assets and Debt Administration
Capital Assets
The City's capital assets as of September 30, 2018 were $1.1 billion. Capital assets include land, buildings,
improvements, machinery, equipment and infrastructure. The total decrease in capital assets from the end of
prior year is approximately 1.42 percent.
Land
Construction -in -Progress
Buildings
Improvements
Machinery and Equipment
Infrastructure
Total
Capital Assets at Year End
(Net of Depreciation)
Governmental
Activities
2018 2017
$ 111,388,474
104,174,459
216,395,682
92,994,564
70,659,296
517,628,422
$ 1,113,240,897
103,511,914
83,996,468
220,697,166
106,568,892
71,495,826
543,034,754
Change
Change ($) (%)
$ 7,876,560
20,177,991
(4,301,484)
(13,574,328)
(836,530)
(25,406,332)
7.61%
24.02%
-1.95%
-12.74%
-1.17%
-4.68%
$ 1,129,305,020 $ (16,064,123) -1.42%
Major capital asset events during the current fiscal year included the following:
• Land increased approximately $7.9 million. The increase is attributed in large part to the City acquiring
four properties valued at $2.1 million and CRA Omni acquiring 3 properties valued at $5.8 for fiscal
year 2018.
• Construction in progress increased approximately $20.2 million. The total transfers out of construction
in progress amounted to approximately $28.1 million; however, there was an addition of approximately
$48.3 million in new expenditures during fiscal year 2018.
• Buildings decreased by approximately $4.3 million. The decrease is in large part attributed to $4.0
million in completed construction in progress projects and building acquisitions which includes a new
community building at Antonio Maceo Park offset by $8.3 million in depreciation expense.
• Improvements decreased by approximately $13.6 million. The projects completed during the fiscal year
and transferred from construction in progress, included $3.2 million in building improvements and $4.1
million in land improvements. There was also an addition of $852 thousand in improvements for City
parks and Public Facilities. These transfers and additions are offset by depreciation expense and
retirements incurred for the current fiscal year which net to $21.7 million.
• Machinery and Equipment decreased by approximately $0.8 million. There was $23.0 million in
additions and transfers, primarily attributed to the acquisition of computers , and communication
equipment for several departments, New Computer Software, Audiovisual and Surveillance Equipment
for the Police Depart and operating equipment including heavy duty vehicles for the Fire and Solid
Waste Departments, Cars and Weapons for the Police Department, Medical Equipment for the Fire
34
CITY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2018
Department these expenditures are offset by $7.2 million in retirements and approximately $16.6
million in depreciation expense for the current fiscal year.
• Infrastructure decreased by approximately $25.4 million. There was $9.2 million in transfers primarily
attributed to roadway improvements. These transfers were offset by $3 4.6 million in depreciation
expense for the current fiscal year.
Additional information on the City's capital assets can be found in Note 1 and Note 5 in the notes to the
fmancial statements.
Long -Tern: Debt
At the end of the current fiscal year, the City had a total debt outstanding of $665.7 million. Of this amount,
$154.4 million is backed by the Limited Ad Valorem Tax Revenue; the remainder represents Special
Obligation, Revenue bonds and loans secured solely by Non -Ad Valorem revenue sources.
The City's net debt decreased during the current fiscal year by $4.9 million or 0.73 percent.
General Obligation Bonds
Special Obligation,
Revenue Bonds and Loans
Outstanding Debt
General Obligation Bonds, Special Obligations
and Revenue Bonds and Loans
Governmental Activities
2018 2017 $ Change % Change
$ 154,385,000 $ 174,640,000 $ 20,255,000 11.60%
511,328,092
Total $ 665,713,092
486,221,380
25,106,712 5.16%
660,861,380 $ 4,851,712 0.73%
The City's current ratings for all of the various types of debt are shown below:
Issue
City of Miami
Bond Ratings
Moodv's
Standard & Poor's
Fitch
Limited General Obligation Bonds
Aa2
AA-
A -
Marlins Garage
Aa3
AA-
A+
Special Obligation (NAV)
Aa3
AA-
A+
Street and Sidewalks
A2
A
AA -
On February 5, 2019, Moody's Investors Service upgraded the Marlins Garage rating from A2 to Aa3. The
rating upgrade is a correction of prior years.
Additional information on the City's long-term liabilities can be found in Note 8 in the notes to the financial
statements.
35
CITY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2018
Economic Factors and Next Year's Budget and Rates
The budget is developed based on needs and performance, and follows the direction of policy as set by the
elected officials. The 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 2018 budget.
Included among these factors were uncertainties regarding pension costs, health insurance costs, other post
employment benefit costs, and other various economic indicators.
The City of Miami, like many municipalities throughout the State, is slowly recovering from the economic
downturn of the previous years. 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.
Between FY 2018-19 and FY 2022-23, General Fund revenues are forecasted to grow by a total of 16.6
percent. The largest components of General Fund revenues are Property Taxes (47.1 percent of FY 2018-19
General Fund revenues), Franchise Fees and Other Taxes (15.2 percent), Charges for Services (15.5
percent), Licenses and Permits (8.8 percent), and Intergovernmental Revenues (10.2 percent). Interest, Fines
and Forfeitures, Other Revenues, and Transfers -In comprise the remaining 3.2 percent.
In fiscal year 2019, the total adopted property tax rate is 8.0300 mills, which remained the same as last
year's total tax rate. The FY 2018-19 Budget for General Fund property tax revenue is $359.68 million.
This budget is based on an assessed valuation of $53.07 billion and a General Fund millage rate of 7.5865.
The millage rate is assumed to remain flat over the five-year period. Taxable property values are projected
to increase by 7.0 percent each year of the forecast through FY 2022-23. This assumption is based on the
expectation that the development activity in the City has leveled out and will remain flat through the end of
the five-year period.
Requests for Information
This financial report is designed to provide a general overview of the City's finances for all those with an
interest in the government's finances to demonstrate the City's accountability. Questions concerning any of
the information provided in this report or requests for additional financial information should be addressed
to the City of Miami's Finance Department — Director, 444 Southwest 2' Avenue, Suite 618, Miami,
Florida 33130, or visit the City's web site at www.miamigov.com.
36
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37
City of Miami, Florida
Statement of Net Position (Deficit)
September 30, 2018
Governmental Component
Activities Units
Assets
Cash, Cash Equivalents, and Investments $ 464,242,616 $ 24,937,391
Receivable - Net 37,482,298 2,743,332
Accrued Interest 1,305,079 -
Due From Other Governments 43,317,528 555,342
Land Held for Resale 90,971 -
Prepaids 2,181,065 779,862
Other Assets 512,453 9,487,728
Restricted Cash, Cash Equivalents, and Investments
Related to Bond Proceeds 49,840,841
Restricted Cash, Cash Equivalents, and Investments 158,491,321 28,972,592
Capital Assets:
Non -Depreciable 215,562,933 12,808,617
Depreciable - Net 897,677,964 48,871,934
Total Assets 1,870,705,069 129,156,798
Deferred Outflows of Resources
Deferred Loss on Refunding Bonds 11,149,020 1,004,684
Outflow Related to Pension 211,071,427 1,084,399
Outflow Related to OPEB - 28,304
Total Deferred Outflows of Resources 222,220,447 2,117,387
Liabilities
Accounts Payable and Accrued Liabilities 78,942,756
Due to Other Governments 1,905,582
Unearned Revenue 18,209,284
Deposits 13,708,231
Accrued Interest Payable 5,994,824
Non -Current Liabilities:
Due Within One Year:
Bonds and Loans Payable 55,718,125
Compensated Absences 10,845,920
Claims Payable 54,985,263
Due In More Than One Year:
Bonds and Loans Payable 614,864,769
Compensated Absences 46,762,358
Claims Payable 226,381,310
Other Post Employment Benefits 596,966,515
Net Pension Liability 860,752,460
Total Liabilities $ 2,586,037,397
6,157,193
1,280,431
682,505
726,562
1,578,727
1,820,000
15.511
62,111,407
445,152
509,433
$ 75,326,921
Deferred Inflows of Resources
Revenue Received in Advance 15,691,272 -
Inflow Related to Pension 57,102,112 780,309
Inflow Related to OPEB 63,563,287 16,399
Total Deferred Inflows of Resources $ 136,356,671 $ 796,708
Net Position (Deficit)
Net Investment in Capital Assets
Restricted for:
Capital Projects
Debt Service
Pension Benefits
Parking Waiver and Transportation
Parking Surcharge
Building
Housing Assistance and Economic Development
Law Enforcement
Community Redevelopment
Choice Housing Voucher Program
E-911
Unrestricted (Deficit)
578,092,580
158,640,310
44,085,896
9,511,610
77,086,917
33,169,094
977,259
30,355,509
86,713
4,501,647
(1,565,976,087)
Total Net Position (Deficit) $ (629,468,552)
The notes to the financialstatements are an integral part of this statement.
4,439,409
12,147,594
1,682,936
1,152,952
773,947
438,876
34,514,842
$ 55,150,556
38
Expenses
City of Miami, Florida
Statement of Activities
For the Fiscal Year Ended September 30, 2018
Net (Expense) Revenue and Changes in
Program Revenues Net Position
Primary
Operating Capital Government
Charges for Grants and Grants and Governmental Component
Services Contributions Contributions Activities Units
Functions/Programs:
Primary Government:
Governmental Activities:
General Government $ 190,825,241 $ 79,797,773 $ 15,466,760 $ 7,295,726 $ (88,264,982) $
Planning and Development 22,721,335 45,574,467 - 22,853,132
Community Development 28,371,102 538,541 28,981,482 1,148,921
Community Redevelpment Areas 35,272,784 4,332,416 1,262,562 (29,677,806)
Public Works 123,517,711 61,719,832 18,092,478 (43,705,401)
Public Safety 387,651,947 39,758,747 30,492,751 - (317,400,449)
Public Facilities 22,371,164 35,922,411 93,730 1,189,708 14,834,685
Parks and Recreation 66,817,655 6,958,019 1,134,314 584,328 (58,140,994)
Interest on Long -Term Debt 25,40.5,481 - - - (25,405,481)
Total Primary Government $ 902,954,420 $ 274,602,206 S 95.524.077 S 9,069.762 $ (523,758,375)
Component Units:
Miami Sports and Exhibition Authority $ 142,217 $ 144,765 $ $ $ $ 2,548
Department of Off -Street Parking 31,816,774 34,244,848 2,428,074
Downtown Development Authority 7,547,112 (7,547,112)
Bayfront Park Management Trust 6,201,049 6,136,831 (64,218)
Coconut Grove BID 1,672,919 1,706,582 33,663
Wynwood BID 787,042 1,464,153 - - 677,111
Civilian Investigative Panel 785,685 - 1,124,000 338,315
Total Component Units $ 48,952,798 $ 43,697,179 $ 1,124,000 $ $ $ (4,131,619)
General Revenues:
Taxes:
Property Taxes, levied for general purposes $ 369,230,063 $ 8,223,153
Property Taxes, levied for debt service 28,017,811 -
Franchise Taxes 49,741,913
State Revenue Sharing - Unrestricted 16,380,921
Sales and Other Use Taxes 35,786,997
Public Service Taxes 64,250,989 -
Investment Earnings - Unrestricted 9,681,343 12,842
Other General Revenues - 148,984
Total General Revenues 573,090,037 8,384,979
Change in Net Position 49,331,662 4,253,360
Net Position - Beg.(Deficit) as restated (Note 1) (678,800,214) 50,897,196
Net Position - Ending (Deficit) $ (629,468,552) S 55,150,556
The notes to the financialstatements are an integral part of this statement.
39
Assets
Pooled Cash, Cash Equivalents, and Investments
Restricted Cash, Cash Equivalents, and Investments
Receivables (Net of Allowance for Uncollectibles):
Loans Receivable
Accounts Receivable
Property Tax
Due From Other Govemments
Due From Other Funds
Accrued Interest
Prepaids
Other Assets
Total Assets
Liabilities and Fund Balances
Liabilities:
Accounts Payable and Accrued Liaibilities
Other Liabilities
Due to Other Funds
Due to Other Govemments
Unearned Revenue
Deposits
Total Liabilities
Deferred Inflows of Resources
Revenue Received in Advance
Unavailable Revenue- Other
Total Deferred Inflows of Resources
Fund Balances:
Non -Spendable Fund Balance
Non Spendable
Spendable Fund Balance
Restricted
Committed
Assigned
Unassigned (deficit)
Total Fund Balances (deficit)
Total Liabilities, Deferred Inflows of Resources and
Fund Balances
City of Miami, Florida
Balance Sheet
Governmental Funds
September 30, 2018
Major Funds
Other Capital
General Projects Impact Fee
Emergency
Services
$ 194,342,429 $ 157,741,752 $ - $
- 92,689,507
30,702,858
2,664,532
6,912,043
33,389,474
979,382
2,154,528
195,024
1,600
16,103,469
4,109
108,618
Non -Major Total
Governmental Governmental
Funds Funds
- $ 112,158,435 $464,242,616
115,642,655 208,332,162
6,444,780
1,794
3,894,670
216,844
13,857,236
212,970
26,537
317,429
1,794
34,599,128
2,881,376
43,317,528
33,389,474
1,305,079
2,181,065
512,453
$ 271,340,270 $ 173,850,930 $ 92,798,125 $ 6,444,780 $ 246,328,570 $ 790,762,675
40,960,966 14,632,375
1,676,475 -
7,823,188
286,092 -
9,104,531 9,104,753
13,492,851 -
65,520,915 31,560,316
15,691,272 -
2,664,532 1,148,411
18,355,804 1,148,411
2,154,528
82,882,117
38,015,621
64,411,285
187,463,551
47,939,319
71,028,576
22,174,308
141,142,203
$ 271.340,270 $ 173,850.930
4,348,009 2,173,065 15,147,642 77,262,057
4,224 1,680,699
21,745,950 3,820,336 33,389,474
1,619,490 1,905,582
18,209,284
215,380 13,708,231
4,348,009 23,919,015 20,807,072 146,155,327
3,133,844
15,691,272
6,946,787
3,133,844 22,638,059
1,026,537 3,181,065
88,450,116 182,460,427 401,731,979
- 36,618,001 107,646,577
- 2,315,463 62,505,392
(17,474,235) (32,774) 46,904,276
88,450,116 (17,474,235) 222,387,654 621,969,289
$ 92.798,125 $ 6,444,780 $ 246,328,570 $ 790,762,675
The notes to the financialstatements are an integral part of this statement.
40
City of Miami, Florida
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
For the Fiscal Year Ended September 30, 2018
Fund Balances - Total Governmental Funds $ 621,969,289
Amounts reported for governmental activities in the Statement of
Net Position 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
Less: Accumulated Depreciation
2,585,935,790
(1,472,694,893) 1,113,240,897
Inventory for land held for resale are not financial
resources and therefore are not reported in the governmental funds. 90,971
Deferred inflow and outflow related to the City's Pension Plans and
Other Post Employment Benefit Plans (OPEB) are amortized in future periods
and are therefore not reported in the governmental funds:
Deferred outflows related to pensions
Deferred inflow related to pensions
Deferred inflow related to OPEB plan
Loss on refunding of debt is recognized in the statement of Net Position and
amortized over the term of the bond
Grant receivables are reported as deferred inflows in the fund financial
statements due to amounts being unavailable; under full accrual accounting
they are reported as revenues.
Tax receivables are reported as deferred inflows in the fund financial
statements due to amounts being unavailable; under full accrual accounting
they are reported as revenues.
Long-term liabilities are not due and payable in the current period
and therefore are not reported in the governmental funds.
211,071,427
(57,102,112)
(63,563,287) 90,406,028
11,149,020
4,065,411
2,881,376
Bonds, Notes, and Loans Payable (670,582,894)
Compensated Absences (57,608,278)
Claims Liability (281,366,573)
Total OPEB Liability (596,966,515)
Net Pension Liability (860,752,460)
Accrued Interest Payable (5,994,824) (2,473,271,544)
Net Position (Deficit) of Governmental Activities $ (629,468,5521
The notes to the financialstatements are an integral part of this statement.
41
City of Miami, Florida
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For The Fiscal Year Ended September 30, 2018
Major Funds
Non -Major Total
Other Capital Emergency Governmental Governmental
General Projects Impact Fee Services Funds Funds
Revenues
Property Taxes $ 325,267,816 $ - $ - $ $ 71,980,058 $ 397,247,874
Franchise and Other Taxes 113,992,902 113,992,902
Licenses and Permits 73,313,619 443,167 73,756,786
Fines and Forfeitures 13,887,391 1,751,137 15,638,528
Intergovernmental Revenues 69,954,774 9,069,762 7,871,353 69,453,410 156,349,299
Charges for Services 117,481,066 293,789 - 15,957,803 133,732,658
Investment Earnings (Loss) 5,808,378 1,343,045 2,529,919 9,681,342
Impact Fees - 20,861,463 - 20,861,463
Other 19,057,070 7,840 - 6,026,328 5,521,533 30,612,771
Total Revenues 738,763,016 9,371,391 22,204,508 13,897,681 167,637,027 951,873,623
Expenditures
Current Operating:
General Government 104,803,715 1,472,090 5,355 94,791 10,847,257 117,223,208
Planning and Development 20,566,954 910,416 242 1,048,929 22,526,541
Community Development 1,566,902 76,967 2,286 26,685,844 28,331,999
Community Redevelpment Areas - - 33,972,903 33,972,903
Public Works 77,187,997 1,359,266 79,526 20,471,907 14,151,274 113,249,970
Public Safety 370,435,719 703,198 948,037 8,136,092 18,108,149 398,331,195
Public Facilities 11,690,124 979,204 - 940,713 4,488,059 18,098,100
Parks and Recreation 46,354,888 2,173,032 2,484,720 1,060,619 1,898,365 53,971,624
Debt Service:
Principal 53,599,962 53,599,962
Interest and Other Charges - - - 35,299,145 35,299,145
Capital Outlay 2,625,162 43,144,617 11,077,252 447,004 23,527,631 80,821,666
Total Expenditures 635,231,461 50,818,790 14,594,890 31,153,654 223,627,518 955,426,313
Excess (Deficiency) of Revenues
Over (Under) Expenditures 103,531,555 (41,447,399) 7,609,618 (17,255,973) (55,990,491) (3,552,690)
Other Financing Sources (Uses)
Transfers In 6,163,609 42,706,976 69,886,943 118,757,528
Transfers Out (82,653,000) (476,000) (35,628,527) (118,757,527)
Proceeds from Sale of Property 277,969 277,969
Proceeds Received from Refunding - 83,045,000 83,045,000
Payment To Escrow Agent For Refunding (74,105,000) (74,105,000)
Issuance of Debt 24,511,675 25,000,000 49,511,675
Total Other Financing Sources (Uses) (76,211,422) 66,742,651 68,198,416 58,729,645
Net Changes in Fund Balances (Deficit) 27,320,133 25,295,252 7,609,618 (17,255,973) 12,207,925 55,176,955
Fund Balances (Deficit) - Beginning 160,143,418 115,846,951 80,840,498 (218,262) 210,179,729 566,792,334
Fund Balances (Deficit) - Ending $ 187,463,551 $ 141,142,203 $ 88,450,116 $ (17,474,235) $ 222,387,654 $ 621,969,289
The notes to the financialstatements are an integral part of this statement.
42
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 Fiscal Year Ended September 30, 2018
Net Changes in Fund Balances - Total Governmental Funds $ 55,176,956
Amounts reported for governmental activities in the Statement of Activities are different because:
Grant revenues are reported as deferred inflows in the fund financial statements due to amounts being
unavailable, under full accrual accounting they are reported as revenues. 106,640
Tax revenues are reported as deferred inflows in the fund financial statements due to amounts being
unavailable, under full accrual accounting they are reported as revenues. 305,818
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 80,821,666
Less: current year depreciation (88,054,565) (7,232,899)
The net effect of various transactions involving capital assets (i.e. sales and disposals)
is to decrease net position. (8,831,224)
The issuance of long-term debt provides current financial resources and the payment of the
principal on long-term debt consumes the resources of the governmental funds.
Principal paid on bonds and loans 53,599,962
Net effect of deferring and amortizing premiums, discounts, and accretion 1,566,708
Issuance of debt -special obligation (25,000,000)
Issuance of debt -capital lease (11,643,949)
Issuance of debt -state revolving loan (12,867,726)
The net increase in the loss on debt refunding 8,229,399
Issuance of debt -refunding of bonds (83,045,000)
Payment to escrow agent for refunding 74,105,000
Some items reported in the Statement of Activities do not require the use of current financial
resources and therefore are not reported as expenditures in governmental funds.
4,944,394
Compensated absences (7,593,030)
Claims payable (71,940,144)
Total OPEB liability and related deferred inflows and outflows (30,131,289)
Net pension liability and related deferred inflows and outflows 114,428,883
Accrued interest payable 97,557 4,861,977
Change in Net Position (Deficit) of Governmental Activities $ 49,331,662
The notes to the financialstatements are an integral part of this statement.
43
City of Miami, Florida
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2018
Employee
Retirement
Funds
Assets
Cash and Cash Equivalents $ 52,502,864
Accounts Receivable 8,226,492
Capital Assets, Net 3,182,267
63,911,623
Investments:
U.S. Government Obligations 230,621,355
Corporate Bonds 318,037,236
Corporate Stocks 980,830,387
Money Market Funds and Commercial Paper 30,032,445
International Equity 258,016,522
Real Estate 179,279,484
Private Equity 156,839,046
Absolute Return Funds 75,013,697
Total Investments 2,228,670,172
Securities Lending Collateral 143,720,934
Total Assets 2,436,302,729
Liabilities
Obligations Under Security Lending Transactions 143,720,934
Accounts Payable 899,053
Accrued Liability 1,250,601
Payable for Securities Purchased 7,754,716
Total Liabilities 153,625,304
Net Position
Restricted for Pension Benefits $ 2,282,677,425
The notes to the financialstatements are an integral part of this statement.
44
City of Miami, Florida
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Fiscal Year Ended September 30, 2018
Employee
Retirement
Funds
Additions
Contributions:
Employer $ 99,296,827
Plan Members 25,138,857
Total Contributions 124,435,684
Investment Earnings:
Net Increase in Fair Value of Investments 135,153,848
Interest 22,598,381
Dividends 14,149,756
Other 268,270
Total Investment Earnings 172,170,255
Security Lending Activities:
Security Lending Income 646,466
Security Lending Fees and Rebates (161,508)
Net Income From Security Lending Activities 484,958
Less Investment Expenses (9,564,800)
Net Investment Earnings 163,090,413
Reimbursement from City for Administrative Costs 3,176,005
Total Additions 290,702,102
Deductions
Benefit Payments 204,579,055
Refunds upon Resignation, Death, Other 2,540,479
Distribution to Retirees 25,279,985
Administrative Expenses and Other Expenses 5,595,292
Total Deductions 237,994,811
Change in Net Position 52,707,291
Net Position Restricted for Pension Benefits - Beginning of Year, As Restated (Note 15) 2,229,970,134
Net Position Restricted for Pension Benefits - End of Year $ 2,282,677,425
The notes to the financialstatements are an integral part of this statement.
45
City of Miami, Florida
Statement of Net Position
Discretely Presented Component Units
September 30, 2018
Miami Sports Department Downtown Bayfront Park
and Exhibition of Off -Street Development Management
Authority Parking Authority Trust
Assets
Cash, Cash Equivalent and Investments $ 775,880 $ 7,596,900 $ 5,261,950 $ 3,150,855
Receivables (Net of uncollectible accounts) - 677,882 435,901 7,972
Due From Other Governments 555,342 -
Prepaids 8,821 604,119 117,451 42,537
Other Assets 8,985,935 - 501,793
Restricted Assets:
Cash, Cash Equivalents, and Investments 28,972,592
Capital Assets:
Non -Depreciable 12,292,488 - 516,129
Depreciable, Net 41,931,406 223,788 6,157,708
Total Assets 784.701 101,616,664 6,039,090 10,376,994
Deferred Outflows of Resources
Deferred Loss on Refunding Bonds 1,004,684 -
Outflow Related to Pension 1,084,399
Outflow Related to OPEB 28,304
Total Deferred Outflows of Resources 2,117,387
Liabilities
Accounts Payable and Accrued Liabilities 9,459 4,815,697 1,044,341 76,909
Due to Other Governments 1,280,431
Unearned Revenue - 465,527 216,978
Deposits 250,000 364,847 111,715
Accrued Interest Payable 1,578,727
Non -Current Liabilities
Due Within One Year:
Bonds and Loans Payable 1,820,000 -
Compensated Absences 15,511
Due In More Than One Year:
Bonds and Loans Payable 62,111,407 -
Compensated Absences 341,470 103,682
Other Post Employment Benefits 509,433
Total Liabilities 259,459 73,287,539 1,163,534 405,602
Deferred Inflows of Resources
Inflow Related to Pension 780,309
Inflow Related to OPEB 16,399
Total Deferred Inflows of Resources 796,708
Net Position
Net Investment in Capital Assets (3,017,248) 223.788 6.673.837
Restricted for:
Capital Projects 12,147,594
Debt Service 1,682,936
Pension Benefits 1,152,952
Parking Waiver and Transportation -
Parking Surcharge - -
Unrestricted 525,242 17,683,570 4,651,768 3,297,555
Total Net Position $ 525,242 $ 29,649,804 $ 4,875,556 $ 9,971,392
The notes to the fnancialstatements are an integral part of this statement.
46
City of Miami, Florida
Statement of Net Position
Discretely Presented Component Units
September 30, 2018
Coconut Civilian
Grove Wynwood Investigative
BID BID Panel
Total
Assets
Cash, Cash Equivalent and Investments $ 6,924,080 $ 810,934 $ 416,792 $ 24,937,391
Receivables (Net of uncollectible accounts) 576,886 1,044,691 2,743,332
Due From Other Governments - - 555,342
Prepaids 6,658 276 779,862
Other Assets - 9,487,728
Restricted Assets:
Cash, Cash Equivalents, and Investments 28,972,592
Capital Assets:
Non -Depreciable - - 12,808,617
Depreciable, Net 559,032 48,871,934
Total Assets 8,066,656 1,855,625 417,068 129,156,798
Deferred Outflows of Resources
Deferred Loss on Refunding Bonds - 1,004,684
Outflow Related to Pension 1,084,399
Outflow Related to OPEB 28,304
Total Deferred Outflows of Resources 2,117,387
Liabilities
Accounts Payable and Accrued Liabilities 164,938 10,000 35,849 6,157,193
Due to Other Governments 1,280,431
Unearned Revenue 682,505
Deposits 726,562
Accrued Interest Payable 1,578,727
Non -Current Liabilities
Due Within One Year:
Bonds and Loans Payable 1,820,000
Compensated Absences 15,511
Due In More Than One Year:
Bonds and Loans Payable 62,111,407
Compensated Absences 445,152
Other Post Employment Benefits 509,433
Total Liabilities 164,938 10,000 35,849 75,326,921
Deferred Inflows of Resources
Inflow Related to Pension 780,309
Inflow Related to OPEB 16,399
Total Deferred Inflows of Resources 796,708
Net Position
Net Investment in Capital Assets 559,032 4,439,409
Restricted for:
Capital Projects 12,147,594
Debt Service 1,682,936
Pension Benefits 1,152,952
Parking Waiver and Transportation 703,147 70.800 773,947
Parking Surcharge 438,876 - 438,876
Unrestricted 6,200,663 1,774,825 381,219 34,514,842
Total Net Position $ 7,901,718 $ 1,845,625 $ 381,219 $ 55,150,556
The notes to the financialstatements are an integral part of this statement.
47
Miami Sports and
Exhibition Authority
Culture and Recreation
Total Miami Sports Exhibition Authority
City of Miami, Florida
Discretely Presented Component Units
Statement of Activities
For the Fiscal Year Ended September 30, 2018
Expenses
Program Revenues
Operating Capital Miami Sports
Charges for Grants and Grants and and Exhibition
Services Contributions Contributions Authority
$ 142,217 $ 144,765 $
$ 2,548
142,217 144,765 2,548
Department
of Off -Street Parking
Transportation 31,816,774 34,244,848
Total Department of Off -Street Parking
Downtown
Development Authority
Economic Development
31,816,774 34,244,848
7,547,112
Total Downtown Development Authority 7,547,112
Bayfront Park
Parks and Recreation
Total Bayfront Park
Coconut Grove BID
General Government
Total Coconut Grove BID
6,201,049 6,136,831
6,201,049 6,136.831
1,672 919 1,706,582
1,672,919 1,706,582
Wynwood BID
General Government 787,042 1,464,153
Total Wynwood BID 787,042 1,464,153
Civilian Investigate Panel
General Government
Total Civilian Investigate Panel
Total Component Units
785,685 1,124,000
785,685 1,124,000
$ 48.952,798 $ 43,697,179 $ 1,124,000 $ $ 2,548
General Revenues:
Taxes:
Property Taxes
Investment Earnings (Loss)
Other General Revenues
Total General Revenue
Change in Net Position
Net position - Beg. as restated (Note 1)
Net position - Ending
611
611
3,159
522,083
525,242
The notes to the financialstatements are an integral part of this statement.
48
City of Miami, Florida
Discretely Presented Component Units
Statement of Activities
For the Fiscal Year Ended September 30, 2018
Net (Expense) Revenue and
Changes in Net Position
Bayfront
Department Downtown Park Civilian
of Off -Street Development Management Coconut Wynwood Investigative
Parking Authority Trust Grove BID BID Panel
Totals
$ $ $ $ $ $ $ 2,548
2,548
2,428,074 2.428.074
2,428,074 - - 2.428.074
(7,547,112) (7,547,112)
(7,547,112) (7,547,112)
(64,218) (64,218)
(64,218) (64,218)
33,663 33,663
33,663 - 33,663
677,111 677,111
677,111 677,111
338.315 338,315
338,315 338,315
$ 2,428,074 $ (7,547,112) $ (64,218) $ 33,663 $ 677,111 $ 338,315 $ (4,131,619)
8,223,153
9,057
148,984
3,174
8,223,153
12,842
148,984
8,381,194 3,174 - 8,384,979
2,428,074 834,082 (61,044) 33,663 677,111 338,315 4,253,360
27,221,730 4,041,474 10,032,436 7,868,055 1,168,514 42,904 50,897,196
$ 29,649,804 $ 4,875,556 $ 9,971,392 $ 7,901,718 $ 1,845,625 $ 381,219 $ 55,150,556
The notes to the financialstatements are an integral part of this statement.
49
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2018
NOTE 1. — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City, which is located in the county of Miami -Dade, was incorporated in 1896, and has a population
of 481,333. 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 35.87 square miles of land and 19.42 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, refuse 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-five 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 fmancially 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.
GASB Codification of Governmental Accounting and Financial Reporting Standards Section 2100
provides guidance for the inclusion of a legally separate entity as a component unit of an entity. The
application of this guidance provides for identification of any entities for which the City is fmancially
accountable or organizations that the nature and significance of their relationship with the City are such
that exclusions would cause the City's basic financial statements to be misleading or incomplete. Based
upon the application of GASB Codification Section 2100, the financial statements of the component
units listed on the following pages have been included in the City's reporting entity as either blended or
discretely presented component units.
Blended component units, although legally separate entities, are in substance part of the City's
operations. Accordingly, data from these component units are included with data of the primary
government. Each discretely presented component unit, on the other hand, is reported in a separate
column in the financial statements to emphasize that they are legally separate from the City. The
financial balances and activities for each blended and discretely presented component unit are as of and
for the year ended September 30, 2018.
50
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Blended Component Units
SOUTHEAST OVERTOWN PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("SEOPW
CRA") — SEOPW CRA 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 separate SEOPW CRA accounts. The members of the City Commission are
also the Board of Directors of the SEOPW CRA. Additionally, under the interlocal agreement the City
handles the disbursement, accountability, management, and proper application of all monies in the
SEOPW accounts. The funds of the SEOPW CRA are included within the reporting entity as a special
revenue fund (SEOPW CRA), a debt service fund (SEOPW CRA - Other Special Obligation Bonds),
and a capital projects fund (SEOPW Community Redevelopment Agency).
OMNI COMMUNITY REDEVELOPMENT AGENCY ("OMNI CRA") — OMNI CRA 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 separate OMNI CRA accounts. The
members of the City Commission are the Board of Directors of the OMNI CRA. Additionally, under the
interlocal agreement the City handles the disbursement, accountability, management, and proper
application of all monies in the OMNI CRA accounts. The OMNI CRA is included within the reporting
entity as a special revenue fund (OMNI CRA).
MIDTOWN COMMUNITY REDEVELOPMENT AGENCY ("MIDTOWN CRA") — MIDTOWN CRA
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 MIDTOWN CRA 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 separate MIDTOWN CRA accounts. The
members of the City Commission are the Board of Directors of the MIDTOWN CRA. Additionally,
under the interlocal agreement the City handles the disbursement, accountability, management, and
proper application of all monies in the MIDTOWN CRA accounts. The MIDTOWN CRA 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, the historical
importance of the Park and the aspirations of the African American Community, make it accessible to
the general public, propose policy, planning, and design to ensure maximum community utilization and
enjoyment. The City Commission must approve VKBPT's board membership and operating budget. The
City considers itself the exclusive recipient of the services provided by VKBPT and therefore its
operations are blended in the reporting entity as a special revenue fund (Virginia Key Beach Park Trust).
51
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
LIBERTY CITY COMMUNITY REVITALIZATION 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 Housing
and Community Development and other City departments, is responsible for oversight of 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 within the Liberty City area. 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 (Liberty City Revitalization Trust).
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
MSEA is fiscally dependent and the City 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 DOSP is
fiscally dependent and the City is discretely presenting the DOSP in the accompanying fmancial
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 DDA is
fiscally dependent and the City is discretely presenting the DDA in the accompanying financial
statements.
BAYFRONT PARK MANAGEMENT TRUST ("BFP") — The BFP was established by the City in 1987
under the authority of City of Miami Resolution No. 10348. The BFP was created for the purpose of
managing and operating the events held at Bayfront and Bicentennial Park and the daily maintenance
and upkeep of the grounds, its various amenities including the amphitheater and the Mildred and Claude
Pepper Fountain. The governing body of the BFP consists of nine appointed members serving initial
52
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
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 BFP is fiscally dependent and the City is discretely presenting the BFP in the
accompanying financial statements.
CIVILIAN INVESTIGATIVE PANEL ("CIP") — The CIP was established by the City of Miami
Commission Ordinance Number 12188 on February 14, 2002 for the purpose of creating an independent
citizen's oversight panel to conduct investigations related to allegations of police misconduct, review
policies, 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 CIP is fiscally dependent and the City is discretely presenting the CIP in the
accompanying financial statements.
COCONUT GROVE BUSINESS IMPROVEMENT DISTRICT ("CGBID") — In July 2004, pursuant to
Resolution No. 12564, the City of Miami approved the establishment of the Coconut Grove Business
Improvement Committee ("BIC"). The BIC was formed as an advisory committee to the City. During
November 2008, the City tabulated the results of a special election for the creation of the Coconut Grove
Business Improvement District ("BID"), where the BID was deemed to be approved by a majority of the
affected property owners. During March 2009, under City Ordinance No. 13059, the City approved to
repeal the BIC and establish a new Coconut Grove Business Improvement District Board ("BID Board")
to stabilize and improve retail and other businesses in the BID area through promotion, management,
marketing and other similar services, including, but not limited to, coordination, funding,
implementation and maintenance of all infrastructure improvement, and other projects, utilizing BID
assessment proceeds and other funds identified. The BID prepares and submits an annual budget request
and master plan to the City Commission for its approval for each fiscal year. Therefore, the BID is
fiscally dependent and the City is discretely presenting the BID in the accompanying financial
statements.
WYNWOOD BUSINESS IMPROVEMENT DISTRICT ("WBID") — On June 4, 2013, the City
through its Office of the City Clerk tabulated the results of a special election for the creation of the
Wynwood Business Improvement District ("BID"), where the BID was deemed to be approved by a
majority of the affected property owners. During July 2013, under City Ordinance No. 13-00831, the
City approved to establish a new Wynwood Business Improvement District Board ("BID Board") to
manage the BID in stabilizing and improving retail and other businesses in the BID area through
promotion, management, marketing and other similar services, including, but not limited to,
coordination, funding, implementation and maintenance of all infrastructure improvement, and other
projects, utilizing BID assessment proceeds and other funds identified. The BID prepares and submits an
annual budget request to the City Commission for its approval for each fiscal year. Therefore, the BID is
fiscally dependent and the City is discretely presenting the BID in the accompanying financial
statements.
53
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
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 HFA is fiscally dependent and the City is discretely presenting the HFA in the
accompanying financial statements. The HFA does not issue stand-alone audited financial statements.
Complete financial information of the individual component units may be obtained at the entity's
respective administrative offices as follows:
SEOPW CRA
819 NW 2nd Ave.
3rd Floor
Miami, Florida 33136
OMNI/MIDTOWN CRA
1401 North Miami Ave.
2nd Floor
Miami, Florida 33136
Virginia Key Beach Park Trust
4020 Virginia Beach Drive
Miami, Florida 33149
Miami Sports & Exhibition
Authority
3500 Pan American Drive
Miami, Florida 33133
Dept. Off Street Parking
40 NW 3rd Street
Suite 1103
Miami, Florida 33128
Downtown Develop. Authority
200 S. Biscayne Blvd.
Suite 2929
Miami, Florida 33131
Civilian Investigative Panel
970 SW 1' Street
Suite 305
Miami, Florida 33130
B. Government -Wide Financial Statements
Coconut Grove BID
3390 Mary Street
Suite 130
Miami, Florida 33133
Wynwood BID
310 NW 26t Street
Suite 1
Miami, Florida 33127
Liberty City Community
Revitalization Trust
4800 NW 12th Avenue
Miami, Florida 33127-2218
Bayfront Park Mgmt. Trust
301 N. Biscayne Blvd.
Miami, Florida 33132-2226
The accompanying financial statements of the City of Miami, Florida (the "City") have been prepared in
conformity with U.S. Generally Accepted Accounting Principles (GAAP). 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.
The government -wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the non -fiduciary activities of the City and its component units.
The primary government is reported separately from the legally separate discrete component units. The
statement of net position presents the financial position of the City and its discretely presented
component units at the end of its fiscal year. The statement of activities demonstrates the degree to which
the direct expenses of a given function or segment are offset by program revenues. Direct expenses are
those that are clearly identifiable with a specific function or segment and indirect expenses (claims
payable, compensated absences, pension benefits, and other post -employment benefits) are allocated to
activities based on each activities pro-rata share of the cost incurred. Program revenues include 1)
54
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
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
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,
deferred outflows/inflows of resources, fund balances/net position, 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, and non -major funds are
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 -level financial statements into the governmental activities
column of the government -wide presentation. The City reports the following major governmental funds:
General Fund — The General Fund is the general operating fund of the City. General tax revenues and
other receipts that are not allocated by law or contractual agreement to some other fund are accounted for
in this fund. General operating expenditures, and capital improvement costs not paid through other funds
are paid from this fund.
Other Capital Projects — This capital fund is used to account for and report on funds received from
various resources (primarily from current revenues, Federal and State Grants) designated for
construction projects.
Impact Fee — This capital fund is used to account for the collection of impact fees and the cost of capital
improvement projects for the type of improvement for which the impact fee was imposed.
Emergency Fund — This special revenue fund is used to account for grant expenditures and FEMA
reimbursements related to disasters. Additionally, this fund accounts for non -disaster related
reimbursable expenditures.
Additionally, the City reports the following fiduciary fund type:
Pension Trust Funds — The Pension Trust Funds account for the City of Miami Fire Fighters' and
Police Officers' Retirement Trust ("FIPO"), the City of Miami General Employees' and Sanitation
Employees' Retirement Trust ("GESE") and Other Managed Trusts (Members, Excess Plan, Staff Plan,
and Staff Excess Plan), and the Elected Officers' Retirement Trust (`SORT"). The Pension Trust Funds
accumulate resources for pension benefit payments to qualified employees.
55
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
D. Measurement Focus and the Financial Statement Presentation
The government -wide and fiduciary fund financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. 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.
As a general rule, the effect of interfund activity has been eliminated from the government -wide
financial statements. Amounts reported as program revenues include 1) charges to customers or
applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3)
capital grants and contributions, including special assessments. Internally dedicated resources are
reported as general revenues rather than program revenues. Likewise, general revenues include all taxes.
The 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, except for grant revenues which are considered to be available if collected within one
year.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However,
debt service expenditures, as well as expenditures related to legal fees, compensated absences, insurable
claims, pollution remediation obligations, pension benefits and other post -employment benefits are
recorded only when payment is due or when City has made a decision to fund these obligations with
current available resources.
Certain revenues associated with the current fiscal period are considered measurable and are recognized
as revenues of the current fiscal period when available. These include:
• Property taxes
• Intergovernmental revenue
• Sales tax, franchise and utility taxes
• Charges for services, and
• Interest
All other revenue items are considered to be measurable only when cash is received by the City.
E. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance
Deposits and Investments
The City has defined "cash, cash equivalents and investments" to include cash on hand, demand
deposits, money market funds, debt securities, and cash with fiscal agents. Each fund's equity in the
City's investment pool is considered to be a cash equivalent since 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.
56
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
All investments, including those of the Pension Trust Funds, are recorded at fair value, which is the price
that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The City and the Pension Trust Funds categorizes its fair
value measurements within the fair value hierarchy established by GASB 72. The hierarchy is based on
the valuation inputs to measure the fair value of the asset. Level 1 inputs are quoted prices in active
markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are
significant unobservable inputs. In addition, certain investments of the Pension Trust Funds are
measured at the net asset value ("NAV") per share (or its equivalent). See Note 2 for more detail
regarding methods used to measure the fair value of investments.
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, which are based on historical collection experience and other factors.
Prepaids
Prepaid items of both government -wide and governmental fund statements are recorded under the
consumption method. Prepaid expenses 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 non -spendable fund balance in the fund fmancial statements,
which indicates that these amounts do not constitute "available spendable resources" even though they
are a component of current assets.
Long term service agreements, other than insurance policies, are expensed in the year of renewal. The
City uses the "Alternate Expense Recognition" method for long term service agreements covering one or
more fiscal period.
Inventory and Assets Held for Resale
There are no inventory values presented in the governmental funds. Purchases considered inventoriable
items are recorded as expenditures/expenses at the time of purchase since the year-end balances are not
material. The government -wide financial statements present inventory values of the City, which are
properties held by the Housing and Community Development Department for resale. Such balances are
recorded at lower of cost or net realizable value.
Restricted Assets
Certain proceeds from bonds, loans and deposits are classified as restricted assets because their use is
limited by applicable bond indentures, contracts, agreements, and other externally imposed constraints.
57
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
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 and discrete component unit fmancial 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 acquisition 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 are depreciated using the straight-line method over the
following estimated useful lives:
Asset Years
Buildings 20 - 50
Improvements 10 - 30
Machinery and equipment 3 - 15
Infrastructure 15 - 75
Compensated Absences
Under terms of Civil Service regulations, labor contracts and administrative policy, City employees are
granted vacation and sick leave in varying amounts. Additionally, certain overtime hours can be accrued
and carried forward as earned time off. Unused vacation and sick time is payable upon separation from
service, subject to various limitations depending upon the employee's seniority and civil service
classification. 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 fund -level liability for compensated absences
includes salary -related payments, paid sixty days subsequent to year end.
Deferred Outflows and Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate fmancial statement element, deferred outflows of resources,
represents a consumption of net position that applies to a future period(s). The City has three items that
qualifies for reporting in this category. The first two items are deferred outflow of resource related to
pension benefits and other post -employment benefits (OPEB). Deferred outflows on pensions arise from
differences between projected and actual earnings on pension plan investments and are amortized to
pension expense using a systematic and rational method over a closed five-year period. Deferred
outflows on pensions and OPEB also include the difference between expected and actual experience
with regard to economic, or demographic factors. These are amortized over the average expected
remaining service lives of all employees that are provided with pensions and OPEB through each plan.
Employer contributions to pension and OPEB plans made subsequent to the measurement date are also
deferred and reduce net pension liability and total OPEB liability in the subsequent year. The third item
is a deferred charge on refunding, which is the difference between the carrying value of the refunded
58
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the
refunded or refunding debt.
In addition to liabilities, the statement of financial position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of resources,
represents an acquisition of net position that applies to a future period(s) and so will not be recognized as
an inflow of resources (revenue) until that time.
Amounts related to governmental fund receivables that are measureable, but not available (not received
within 60 days from fiscal year end), are recorded as unavailable (a deferred inflow of resources) in the
governmental fund financial statements. In addition, amounts received in advance, for which time
requirements are not met for revenue recognition are reported as a deferred inflow at both the fund level
and the government -wide level.
Deferred inflows on pensions are recorded when investment return on pension plan assets exceeds
actuarial assumptions and are amortized using a systematic and rational method over a closed five-year
period. Deferred inflows on pensions also include the difference between expected and actual experience
with regard to economic, or demographic factors; changes of assumptions about future economic,
demographic, or other factors. These are amortized over the average expected remaining service lives of
all employees that are provided with pensions through each pension plan. Deferred Inflow of Resources
related to OPEB arise from changes in actuarial assumptions. This amount is amortized over a period
equal to the average of the expected remaining service lives (in years) of all employees that are provided
with benefits through the OPEB plan.
Employee Benefit Plans and Net Pension Obligation - The City provides separate defined benefit
pension plans for general employees, sanitation employees and for uniformed police and fire department
personnel, as well as a defined contribution pension plan created in accordance with Internal Revenue
Code Section 401(a) primarily for directors and other unclassified administrator employees. The City
also offers an optional deferred compensation plan created in accordance with Internal Revenue Code
Section 457.
For the purposes of measuring the net pension liability, deferred outflows of resources and deferred
inflows of resources related to pensions, and pension expense, information about the fiduciary net
position of the City's defined benefit pension plans and additions to/deductions from the plans' fiduciary
net position have been determined on the same basis as they are reported by the plans. For this purpose,
benefit payments (including refunds of employee contributions) are recognized when due and payable in
accordance with the benefit terms and investments are reported at fair value.
Post -Employment Benefits Other Than Pensions (OPEB) - Pursuant to Section 112.0801, 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 under the
FOP Health Trust that is administered separately from the City's health care plan. For non -police retirees
(fire fighters, general employees, sanitation employees and elected officials) and their dependents, the
City subsidizes health care coverage and life insurance at a premium equal to the blended group rate.
The City is financing the post employee benefits on a pay -as -you go basis. As determined by an
actuarial valuation, the City recorded the total OPEB liability in its government -wide financial
statements related to the implicit subsidy. The total OPEB liability is measured and reported in
59
CITY OF NIIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
accordance with the requirements of GASB 75, Accounting and Financial Reporting for Post -
employment Benefits Other than Pensions.
Unearned Revenues
Resources that do not meet revenue recognition requirements (not earned) are recorded as unearned
revenue in the government -wide and the governmental fund financial statements.
Unearned revenues in the government -wide and governmental funds financial statements at September
30, 2018 are as follows:
Source Balance
College of Policing - Lease Income $ 9,104,753
Skyrise Miami - Lease Income 9,104,531
Total $ 18,209,284
Long -Term Obligations
In the government -wide financial statements long-term debt and other long-term obligations are reported
as liabilities on the statement of net position. Bonds payable as reported includes, bond premiums or
discounts. Bond premiums, discounts and prepaid insurance cost are amortized over the life of the bonds
using the effective interest method.
In the fund fmancial statements, governmental fund types recognize bond premiums and discounts
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 payment of debt principal, are reported as debt service expenditures.
Under GASB 49, Accounting and Financial Reporting for Pollution Remediation Obligations, a
pollution remediation is an obligation to address the current or potential detrimental effects of existing
pollution by participating in pollution remediation activities such as assesments and clean-ups.
Risk Management
Under the protection of the sovereign immunity limit, Florida Statutes 768.28 and Chapter 440, Florida
Statutes covering Workers' Compensation, the City has established a self -insured program to provide
coverage for almost all areas of liability including Workers' Compensation, General Liability,
Automotive Liability, Police Professional Liability, Public Officials' Liability, and Employment
Practices Liability. Section 768.28, Florida Statutes, provides for waiver of sovereign immunity in tort
actions or claims against the state and its agencies and subdivisions. The present limit of recovery in the
absence of special relief granted by the Florida legislature is $200,000 per person per claim or judgment.
The limit of recovery for all claims or judgments arising out of the same incident or occurrence is
$300,000. The City also provides group health benefits for its active employees, retirees, and their
dependents through a fully self -funded health insurance program and uses a commercial carrier as the
administrator. The City records a liability for Workers' Compensation, General Liability, Employee
Health Programs, Automotive Liability, Police Professional Liability, Public Officials' Liability, and
Employment Practices Liability.
60
CITY OF NIIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Net Position
Equity in the government -wide statement of net position is displayed in three categories: 1) net
investment in capital assets, 2) restricted, and 3) unrestricted. Net investments in capital assets consists
of capital assets reduced by accumulated depreciation and by any outstanding debt incurred to acquire,
construct, or improve those assets, excluding unexpended proceeds. Deferred outflow and inflow of
resources that are attributable to acquisition of those assets or related debt are included in this component
of net position. Net position is reported as restricted when there are legal limitations imposed on its use
by State Statutes, City legislation or external restrictions by other governments, creditors, or grantors.
Unrestricted net position consists of all items that do not meet the definition of either of the other two
components. As of fiscal year end the City reported an unrestricted net deficit, which will require future
funding to eliminate this deficit amount.
When restricted resources are available for use, it is the City's policy to use restricted resources first as
they are needed. Similarly, within fund balance categories committed amounts are reduced first,
followed by assigned, and then by unassigned amounts when expenditures are incurred for purposes for
which amounts in any of these fund balance classifications could be used.
Fund Balance
Governmental Accounting Standards Board Statement No. 54, Fund Balance Reporting and
Governmental Fund Type Definitions, established the accounting and financial reporting standards for
government entities to report fund balance in classifications that comprise a hierarchy based primarily on
the extent to which the government is bound to honor constraints on the specific purposes for which
amounts in those funds can be spent. The following is a description of the classifications used by the
City.
Nonspendable Fund Balance — This amount includes amounts that cannot be spent because they are
either (a) not in spendable form or (b) legally or contractually required to be maintained intact.
Examples of this would be inventory, prepaid assets, and permanent endowments.
Restricted Fund Balance — This amount includes amounts that are restricted to specific purposes as
stipulated by (a) external creditors, grantors, contributors, or laws or regulations of other governments or
(b) imposed by law through constitutional provisions or enabling legislation.
Committed Fund Balance — This amount includes amounts that can only be used for specific purposes
pursuant to constraints imposed by the City's highest level of decision making authority which is the
City Commission. The commitment can only be revised or removed by adoption of a new resolution.
Assigned Fund Balance — This amount includes amounts that are constrained by the City's intent to be
used for specific purposes, but are neither restricted nor committed. Assignments are made directly by
formal action of the City Commission.
Unassigned Fund Balance — This amount is the residual classification for the general fund. This
classification represents fund balance that has not been assigned to other funds and that has not been
restricted, committed, or assigned to specific purposes within the general fund. An assigned fund balance
cannot result in an unassigned fund balance deficit.
61
CITY OF NIIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The following schedule classifies the City's fund balances as of fiscal year end September 30, 2018:
General
City of Miami, Florida
Fund Balance Classification
Major Governmental Funds
September 30, 2018
Major Funds
Non -Major Total
Other Capital Emergency Governmental Governmental
Projects Impact Fee Services Funds Funds
FUND BALANCES
Non Spendable:
Recycling Trust Fund $ - $ $ $ $ 1,000,000 $ 1,000.000
Prepaid Items 2,154,528 26,537 2,181,065
2,154,528 - 1,026,537 3,181,065
Spendable:
Restricted for:
Debt Service (Required by Debt Covenants) - - 44,085,896 44,085,896
Physical Environment - - - - 84,472 84,472
Water Sewer Combination 6,293,364 - 6,293,364
Park Projects 10,057,062 - 4,153,218 14,210,280
Capital Improvements 9,819,081 88,450,116 1,520,713 99,789,910
Transportation and Transit 5,795,200 14,517.478 - 40,800,295 61,112,973
Housing and Urban Development - 18,622,080 18,622,080
Public Safety - 1,999,251 7.344,853 9,344,104
Building 77.086,917 77,086,917
Other Facilities Improvement 5,253,083 4,610,058 9,863,141
Community Redevelopment Agencies - 55,393,801 55,393,801
Other - 5.845,041 5,845.041
82,882,117 47,939,319 88,450,116 - 182,460,427 401,731,979
Committed to:
Housing and Urban Development - - - 5,511,377 5,511,377
Capital Improvement 5.3I7,984 3,899.363 9,217,347
Transportation Projects - 14,931,101 14.920,989 29,852,090
Public Safety 570,790 3,602 985 4,173,775
Public Works 3,338,969 - 3,338,969
Physical Environment 3,188,600 3,188,600
Facilities improvement 7,141,893 - 7,141,893
Parks Projects - 11,696,294 - - 1,123,741 12,820,035
Emergency and Disaster Relief 14,350,885 - 14,350,885
Other 10.492.060 7,559.546 18,051,606
71,028.576 - 36,618,001 107,646,577
Assigned to:
Parks Projects 2,000,069 438,907 2,438.976
Planning Projects - - - - 59,938 59,938
Public Facilities Projects 12,010,154 - 12,010,154-
Transportation Projects 7,618,855 7.618,855
Post -Retirement Benefits, Self -Insurance Claims
and Other 38.015,621 - - 38,015,621
Other 545,230 1.816,618 2,361,848
38,015,621 22,174,308 - 2,315,463 62,505.392
Unassigned:
Other ((fetich)
64,411,285
- (17.474,235j (32,774) 46.904,276,
Total Fund Balance (deficit) 8 187,463,551 $ 141,142,203 $ 88,450.116 $ (17.474,235) $ 222,387.654 $ 621,969,289
62
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The City's Financial Integrity Principles require the City to maintain a minimum General Fund balance
equal to twenty percent, (10% Designated and 10% Unassigned) of the prior three years average of
general revenues (excluding transfers). The average three years revenues for fiscal years 2015, 2016, and
2017 were approximately $644.1 million. Based on this, the City is required to individually retain a
designated and unassigned fund balance of approximately $64.4 million each. The designated Fund
Balance may consists of amounts classified as either restricted, committed, or assigned and such
designation shall be based on the standard and guidance established, and amended from time to time, by
the Governmental Accounting Standards Board (GASB). As of September 30, 2018, the City has
approximately $123.0 million of fund balance which meets the above designated fund balance criteria,
and has reported also, an unassigned fund balance of $64.4 million as required in accordance with the
City's Financial Integrity Ordinance for a total Fund Balance of $187.5 million.
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, liabilities, deferred inflow/outflow of resources and disclosure of contingent assets
and liabilities at the date of the financial statements. Estimates also affect the reported amounts of
revenues and expenditures/expenses during the reporting period. Actual results could differ from
estimates.
Excess of Expenditures over Appropriations
The following funds' actual expenditures exceeded appropriations for the year ended September 30,
2018:
Fund
General:
City Clerk
Innovation and Technology Department
Capital Improvements and Transportation
Risk Management
Building
Planning
General Service Administration
Public Works and Sustainability
Parks Department
Special Revenue:
Midtown CRA
Debt Service:
CRA Other Special Obligation Bonds
$
Exceeds Budget
Authorization
28,705
169,794
75,043
6,977
245,097
49,945
510,396
534,624
509,057
1,800
5,432,176
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.
City departments will work closely with the Budget Department to minimize these instances in the
ensuing fiscal year.
63
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Fund Deficits
The following funds had fund balance deficits in the amounts indicated as of September 30, 2018:
Fund Deficit
Special Revenue:
Emergency Special Revenue Fund $17,474,235
Homeless Services Special Revenue Fund 32,537
Public Facilities Special Revenue Fund 237
The fund deficit reported as of September 30, 2018, for the Emergency Services Special Revenue Fund
is attributed to expenditures exceeding grant reimbursement in the current fiscal year related to
Hurricane Irma. The City expects to receive grant reimbursements in the ensuing fiscal year to eliminate
the deficit fund balance.
New Accounting Pronouncements
The following new pronouncements effective for the year ending September 30, 2018 were adopted by
the City:
GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other
Than Pension (OPEB), the scope of this Statement addresses accounting and financial reporting for
OPEB that is provided to the employees of state and local governmental employers.
The Department of Off -Street Parking (the Authority) implemented GASB Statement No.75 effective
October 1, 2017. The Authority has a single -employer OPEB plan that offers post -retirement benefits to
eligible employees. GASB Statement No. 75 requires the employer to report the employer's total OPEB
liability and OPEB expense, along with the related deferred outflows and inflows of resources of the
OPEB plan.
The implementation of GASB Statement No.75 required the Authority to restate the net position and to
report the Authority's total OPEB liability and related deferred outflows of resources for the OPEB plan.
Beginning net position has been restated as follows:
Total net position - October 1, 2017, as reported $27,597,295
Restatement - GASB Statement No.75 Implementation (375,565)
Total net position - October 1, 2017, as restated $27,221,730
The implementation of GASB Statement No.75 resulted in the Authority recording deferred outflows of
resources of $27,754 and increasing the total OPEB liability from$122,928 to $526,247 as of October 1,
2017 due to the transitioning in the valuation methods under GASB Statement No.45 to GASB
Statement No. 75.
64
CITY OF NIIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The City also implemented GASB Statement No.75 effective October 1, 2017. The City has two separate
single -employer OPEB plans that offers post -retirement benefits to eligible retirees.
The implementation of GASB Statement No.75 required the City to restate the net position and to report
a total OPEB liability and related deferred outflows of resources for the OPEB plan.
Beginning net position has been restated as follows:
Total net position (deficit) - October 1, 2017, as reported $(505,726,701)
Restatement - GASB Statement No.75 Implementation (173,073,513)
Total net position (deficit) - October 1, 2017, as restated $(678,800,214)
GASB Statement No. 81, Irrevocable Split -Interest Agreements, the objective of this Statement is to
improve accounting and financial reporting for irrevocable split -interest agreements by providing
recognition and measurement guidance for situations in which a government is a beneficiary of the
agreement. The adoption resulted in no financial impact to the City.
GASB Statement No. 82, Pension Issues an amendment of GASB Statements No. 67, No. 68, and
No. 73, this Statement addresses issues regarding (1) the presentation of payroll -related measures in
required supplementary information, (2) the selection of assumptions and the treatment of deviations
from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the
classification of payments made by employers to satisfy employee (plan member) contribution
requirements. The adoption resulted in no financial impact to the City.
GASB Statement No. 85, Omnibus 2017. The objective of this Statement is to address practice issues
that have been identified during implementation and application of certain GASB Statements. This
Statement addresses a variety of topics including issues related to blending component units, goodwill,
fair value measurement and application, and postemployment benefits (pensions and other
postemployment benefits [OPEB]). The adoption resulted in no financial impact to the City.
GASB issued Statement No. 86, Certain Debt Extinguishment Issues. The primary objective of this
Statement is to improve consistency in accounting and financial reporting for in -substance defeasance of
debt by providing guidance for transactions in which cash and other monetary assets acquired with only
existing resources; that is, resources other than the proceeds of refunding debt -are placed in an
irrevocable trust for the sole purpose of extinguishing debt. This Statement also improves accounting and
financial reporting for prepaid insurance on debt that is extinguished and notes to financial statements for
debt that is defeased in substance. The adoption resulted in no fmancial impact to the City.
65
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
NOTE 2. — DEPOSITS AND INVESTMENTS
Pooled Cash
The City (excluding the Pension Trust Funds and restricted cash balances) 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 to all eligible funds, accounts and/or sub -account,
based on the available cash balance at month end. The yield is determined for these eligible funds, based
on the amount of time they are available for investing. A cash balance that is needed within a three
month period will receive the yield on a 3 month treasury bill as determined by the current bond market.
Deposits
Custodial Credit Risk — This is the risk in the event of a financial institution 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, Security for Public
Deposits, which requires all Florida qualified public depositories to deposit with the Treasurer or other
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
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 and/or a designee in his/her absence to purchase and
invest idle funds prudently in US 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 have 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 administers the Local Government Surplus Funds Trust Fund which
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 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 cost. The value of the position in
the external investment pool is the same as the value of the pool shares.
66
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
At September 30, 2018, pooled cash, cash equivalents and investments including restricted amounts of
the primary government, exclusive of the Pension Trust Funds and discrete component units balances,
consisted of the following:
Investment Type Balance
United States Treasury Notes $ 168,093,083
Federal Home Loan Mortgage Corporation 22,286,455
Federal Home Loan Bank 87,708,060
Corporate Notes 45,597,823
Supranational Notes 18,489,562
Commercial Paper 86,827,913
Money Market Fund 7,236,034
Total Investments 436,238,930
Bank Deposits 236,335,848
Total Pooled Cash, Cash Equivalents and Investments $ 672,574,778
Custodial Credit Risk — This is the risk 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 in the possession of an outside
party. The City's investment policy requires securities be registered in the name of the City. All
safekeeping receipts for investment instruments are held in accounts in the City's name.
As of September 30, 2018, $49.8 million of the total balance listed above relates to unspent bond and
lease proceeds restricted for capital projects. Unspent bond and lease proceeds by debt issue consisted of
the following:
Debt Issue Unspent Debt Proceeds
2009 Homeland Defense $ 1,499,776
2009 Streets & Sidewalks 8,491,411
2010B Marlins Garage Taxable 489,314
2014A-1 CRA SEOPW Tax Increment Rev 2,617,048
2014A-2 CRA SEOPW Tax Increment Rev 5,959,549
2018A CRA OMNI Tax Increment Rev 8,883,775
2018B CRA. OMNI Tax increment Rev 7,342,508
2017 Special Obligation Bond 4,146,880
Citywide Radio Equipment Lease 10,410,580
Total $ 49,840,841
The City also has an additional $7.2 million of cash, cash equivalents, and investments restricted for debt
service payments.
Interest Rate Risk — Interest rate risk is the risk that changes in market 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 the market interest rates.
67
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The City's policy limits the maturity of an investment to a maximum of five years. As of September 30,
2018, the City had the following investments with the respective weighted average maturity in years.
The respective weighted average maturities were based on the securities' maturity date.
Weighted Average
Investment Type Fair Value Maturity in Years
United States Treasury Notes $ 168,093,083 0.54
Federal Home Loan Mortgage Corporation 22,286,455 0.97
Federal Home Loan Bank.. 87,708,060 0.44
Corporate Notes 45,597,823 1.00
Supranational Notes 18,489,562 1.44
Commercial Paper 86,827,913 0.19
Money Market Fund 7,236,034 Less than 1 year
Total $ 436,238,930
The City's portfolio of Corporate Notes securities includes callable securities. If a callable investment is
purchased at a discount or premium, the maturity date is assumed to be the maturity date of the
investment. As of September 30, 2018, the City owned callable securities with a fair value of $6.7
million.
The portfolio's overall weighted average duration was 0.56 years. The City's investment policy dictates
the overall weighted average duration of the City's portfolio shall be three (3) years or less at the time of
purchase. As of September 30, 2018, the City recorded an unrealized loss of approximately $0.72
million.
Credit Risk — Credit Risk is the risk that an issuer or other counterparty to an investment will not fulfill
its obligations. 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). 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 two major rating agencies (Standard & Poor's and Moody's). The table that follows
summarizes the investments by credit rating at September 30, 2018:
Standard & Poor Moody's
Investment Type Credit Rating Credit Rating Balance
Federal Home Loan Mortgage Corp. AA+ Aaa $ 22,286,455
Federal Home Loan Bank AA+ Aaa 87,708,060
Corporate Notes A- A3 45,597,823
Commercial Paper A-1 P-1 86,827,913
Supranational Notes AAA Aaa 18,489,562
Money Market Fund AAAm Aaa-mf 7,236,034
68
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
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 City's investment policy allows investment in the following instruments:
Sector
Sector
Maximum
(%)
Per Issuer
Maximum
(%)
Minimum Ratings Requirement
U.S. Treasury
100%
100%
Not Applicable
GNMA
40%
Other U.S. Government
Guaranteed (e.g. AID, GTC)
10%
Federal Agency/GSE: FNMA,
FHLMC, FHLB, FFCB
75%
°
40 /°
Not Applicable
Federal Agency/GSE other
than those above
] 0%
Supranationals where U.S. is a
shareholder and voting
member
°
25%
°
10 /o
Highest ST or LT Rating Category (A-1/P-1, AAA-/Aaa3, or
equivalent)
Foreign Sovereign
Governments (OECD
countries only) and Canadian
Provinces
5%
2%
Highest ST or Two Highest LT Rating Categories (A-1/P-1, AA -
/Aa3, or equivalent)
Corporates
25%
5%
Highest ST or Two Highest LT Rating Categories (A-1/P-1, A-/Aa3,
or equivalent)
Municipals
25%
5%
Highest ST or Three Highest LT Rating Categories (SP-1/MIG 1, A-
/A3, or equivalent)
Agency Mortgage -Backed
Securities (MBS)
5%
40%
Not Applicable
Asset -Backed Securities
(ABS)
5%
5%
Highest ST or LT Rating (A-1+/P-1, AAA/Aaa, or equivalent)
Non -Negotiable Collateralized
Bank Deposits or Savings
Accounts
°
10 /o
None, if fully
collateralized
None, if fully collateralized.
Commercial Paper (CP)
35%
5%
Highest ST Rating Category (A-1/P-1, or equivalent)
Repurchase Agreements
(Repo or RP)
20%
20%
Counterparty (or if the counterparty is not rated by an NRSRO, then
the counterparty's parent) must be rated in the Highest ST Rating
Category (A-1/P-1, or equivalent) If the counterparty is a Federal
Reserve Bank, no rating is required
Money Market Funds (MMFs)
25%
25%
Highest Fund Rating by all NRSROs that rate the fund (AAAm/Aaa-
mf, or equivalent)
Intergovernmental Pools
(LGIPs)
°
25%
25%
Highest Fund Quality and Volatility Rating Categories by all
NRSROs that rate the LGIP, (AAAm/AAAf, SI, or equivalent)
Florida Local Government
Surplus Funds Trust Funds (
Funs°
"Florida Prime" or "SBA")
25%
N/A
Highest Fund Rating by all NRSROs who rate the fund (AAAm/Aaa-
mf, or equivalent)
69
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
As of September 30, 2018, the following issuers represent 5 percent or more of the City's investment
portfolio:
Issuer Percentage
United States Treasury Notes 39%
Federal Horne Loan Bank (FHLB) 20%
Federal Home Loan Mortgage Corporation (FHLMC) 5%
Fair Value Measurements — The City categorizes its investments within the fair value hierarchy levels
established by GASB 72. The hierarchy is based on the valuation inputs used to measure the fair value of
the asset. Investments measured and reported at fair value are classified and disclosed in one of the
following categories. Level 1 inputs are investments traded in an active market with available quoted
prices for identical assets as of the reporting date. Level 2 inputs are inputs other than quoted prices
included in level 1 that are observable for an asset or liability, either directly or indirectly, as of the
reporting date. Level 3 inputs are investments not traded in an active market and for which no significant
observable market inputs are available as of the reporting date. All of the City's investments are
categorized as Level 2.
The following table summarizes the valuation of the City's investments in accordance with the above
mentioned fair value hierarchy levels as of September 30, 2018:
Fair Value
Measurements
Using
Significant Other
Observable Inputs
Investments by Level: Fair Value (Level 2)
Debt Securities:
United States Treasury Notes $ 168,093,083 $ 168,093,083
Federal Home Loan Mortgage Corp. 22,286,455 22,286,455
Federal Home Loan Bank 87,708,060 87,708,060
Corporate Notes 45,597,823 45,597,823
Supranational Notes 18,489,562 18,489,562
Commercial Paper 86,827,913 86,827,913
Money Market Fund 7,236,034 7,236,034
Total Investments by fair value level _ $ 436,238,930 $ 436,238,930
70
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
City of Miami Firefighters and Police Officers Retirement Trust (FIPO)
FIPO's investment policy is determined by its Board of Trustees and has engaged outside investment
professionals to manage the assets of the Trust 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.
Alternative investments of FIPO 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, have determined the fair values for the individual
investments based upon net asset value per the partnership's or limited liability company's most recent
available financial information adjusted for cash flow activities through September 30,2018. Please refer
to Pension Note 10 for additional detail regarding FIPO.
FIPO has adopted the following asset allocation policy as of September 30, 2018:
Asset Class Target Allocation
Core Fixed Income 29%
Domestic Equity 26%
International Equity 17%
Real Estate 11 %
Absolute Return 11 %
Infrastructure 2%
Private Equity 4%
100%
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, FIPO diversifies its investments by security type and institution, and limits holdings in
any one type of investment with any one issuer with various durations of maturities.
71
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Information about the sensitivity of fair values of FIPO's investments to market interest rate fluctuations
is provided by the following table that shows the distribution of FIPO's investments by maturity at
September 30, 2018:
U.S U.S Corporate
Treasuries Agencies Bonds
Total
Fair Value $ 42,785,559 $ 77,387,186 $ 248,446,185 $ 368,618,930
Investment Maturities:
Less than 1 Year 482,519 10 9,671,718 10,154,247
1 to 5 year 30,687,534 548,964 69,410,745 100,647,243
6 to 10 year 4,857,405 4,108,634 143,105,676 152,071,715
More than 10 Years 6,758,101 72,729,578 26,258,046 105,745,725
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. FIPO's investment
policy utilizes portfolio diversification in order to control this risk.
The following table discloses credit ratings, at September 30, 2018:
Percentage of
Investment Type/ Rating Fair Value Portfolio
U.S. Agencies $ 77,387,186 20.99%
U.S. Treasuries 42,785,559 11.61%
U.S. Government guaranteed* 120,172,745 32.60%
Credit risk debt securities:
AAA 2,472,840 0.67%
AA+ 7,366,395 2.00%
AA 2,579,625 0.70%
AA- 6,032,533 1.64%
A+ 10,643,930 2.89%
A 14,109,867 3.83%
A- 26,509,745 7.19%
BBB+ 40,500,746 10.99%
BBB 27,934,652 7.58%
BBB- 13,123,756 3.56%
BB+ and Lower 712,250 0.19%
Not Rated 96,459,846 26.17%
Total 248,446,185 67.40%
Grand Total
$ 368,618,930 100.00%
*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.
72
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Custodial Credit Risk — This is the risk that in the event of the failure of the counterparty to a
transaction, 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. Consistent with the Plan's investment policy, the investments
are held by the Plan's custodial bank and registered in the Plan's name. All of the FIPO deposits are
insured or collateralized by a financial institution separate from FIPO' s depository financial institution.
Concentration of Credit Risk — The investment policy of FIPO 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 percent or more of FIPO's fiduciary net position at September 30,
2018.
Foreign Currency Risk — Foreign currency risk is the risk that changes in exchange rates will adversely
affect the fair value of the investment or a deposit. FIPO may have exposure to foreign currency risk to
the extent its investments contain non-U.S. dollar denominated holdings in foreign countries. All asset
classes may hold non-U.S. securities, depending on portfolio guidelines. There is no requirement that
this exposure to foreign currency be hedged through forward currency contracts, although the investment
manager uses them in many cases
FIPO has an indirect exposure to foreign currency fluctuation as follows:
Currency
Swiss Franc
Australian Dollar
Brazilian Real
British Pound Sterling
Canadian Dollar
Danish Krone
Euro
Hong Kong Dollar
Indonesian Rupiah
Japanese Yen
Mexican Peso
Norwegian Krone
Singapore Dollar
South Korean Won
Swedish Krona
Taiwan Dollar
Other
Total
Holdings valued
in U.S. Dollars -
International Equities
14,763,777
5,296,435
882,454
32,251,918
6,278,645
629,421
57,629,121
18,423,125
221,885
31,708,430
1,387,007
837,806
4,717,967
4,237,706
5,631,487
4,970,142
3,717,660
$ 193,584,986
73
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
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 FIPO's custodial bank.
All loans can be terminated on demand by either FIPO or the borrowers. The average term of loans
outstanding at September 30, 2018, is approximately 67 days. The custodial bank and its affiliates are
prohibited from borrowing FIPO's securities.
The agent lends FIPO's U.S. government and agency securities and domestic corporate fixed -income
and equity securities for securities or cash collateral of 102 percent of the value of the securities plus any
accrued interest and international securities of 105 percent of the market value of the securities plus any
accrued interest. The securities lending contracts do not allow FIPO 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 30 days, respectively. The relationship between
the maturities of the investment pool and FIPO's loans is affected by the maturities of the securities'
loans made by other entities that use the agent's pool, which FIPO 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, 2018:
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 $ 28,963,383 $ 29,586,357 $ 29,586,358
International Equities 1,589,186 1,677,025 1,677,025
Domestic Corporate Stocks 85,440,031 87,610,361 87,610,361
Domestic Corporate Bonds 24,212,495 24,847,191 24,847,191
Total $ 140,205,095 $ 143,720,934 $ 143,720,935
The contract with FIPO's custodian requires the custodian to indemnify FIPO 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, FIPO has no credit
risk exposure to borrowers because the amounts of collateral held by FIPO exceed the amounts the
borrowers owe FIPO. 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.
74
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The following table details FIPO investments as of September 30, 2018:
Investments, at fair value:
Debt Securities (Domestic):
U.S. Treasuries
U.S. Agencies
U.S. Government Obligations
Amount
42,785,559
77,387,186
120,172,745
Corporate Bonds:
Corporate Bonds 115,780,448
Asset Backed Securities 8,375,154
Mortgage Backed Securities 2,046,115
Guaranteed Fixed Income 91,830,963
Debt Securities (International):
International Government Bonds 2,913,325
International Corporate Bonds 27,500,180
Corporate Bonds 248,446,185
Corporate Stocks 478,187,607
International Equity 258,016,522
Mutual Funds
Real Estate 179,279,484
Private Equity 156,839,046
Absolute Return Funds 75,013,697
Total Investments $ 1,515,955,286
Fair Value Measurements — The FIPO Trust categorizes its investments within the fair value hierarchy
established by GASB 72.
The Trust has established a framework to consistently measure the fair value of the Trust's assets and
liabilities in accordance with applicable accounting, legal, and regulatory guidance. This framework has
been provided by establishing valuation policy and procedures that will provide reasonable assurance
that assets and liabilities are carried at fair value. In certain cases, the inputs used to measure fair value
may fall into different levels of the fair value hierarchy. In such cases, an investment's level within the
fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.
The Trust's assessment of the significance of a particular input to the fair value measurement requires
judgment and considers factors specific to the investment.
75
CITY OF NIIANII, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The following table summarizes the valuation of the FIPO Trust's investments in accordance with the
GASB 72 fair value hierarchy levels as of September 30, 2018:
Investments by level:
Debt Securities:
Government and Agency Obligations
Municipal/Provincial Obligations
Asset Backed Securities
Mortgage Backed Securities
Corporate Bonds
Mutual Fund Investment
Total Debt Securities
Equity Securities:
Domestic Equities
International Equities
Total Equity Securities
Alternative Investments:
Private Equity
Real Estate Equity
Total Alternative Investments
Total Investments by fair value level
Investments Measured at The Net Asset Value (NAV)
Commingled Domestic Fixed Income Funds
Commingled International Equity Funds
Commingled Domestic Equity Funds
Absolute Return Funds
DROP Trust Investment, at contract value
Total Investments measured at the NAV
Total Investments
Balance
$ 44,979,035
78,107,035
8,375,154
2,046,115
143,280,628
128,176,441
13,428,111
418,392,519
306,328,977
229,255,954
535,584,931
156,839,046
179,279484
336,118,530
1,290,095,980
78,402,852
28,761,868
171,857,331
75,013,697
26,264,409
380,300,157
$ 1,670,396,137
Fair Value Measurements Using
Quoted Prices
in Actives
Markets for
Identical
Assets
(Level 1)
128,176,441
Significant
Other
Observable
Inputs
(Level 2)
$ 44,979,035
$78,107,035
$8,375,154
$2,046,115
$143,280,628
13,428,111
128,176,441 290,216,078
306,328,977
229,255,954
535,584,931
$ 663,761,372
Significant
Unobservable
Inputs
(Level 3)
156,839,046
179,279,484
336,118,530
$ 290,216,078 $ 336,118,530
Debt Securities - Debt securities consist primarily of negotiable obligations of the U.S. government and
U.S. government -sponsored agencies, corporations, securitized offerings backed by residential and
commercial mortgages, and foreign debt securities. These securities can typically be valued using the
close or last traded price on a specific date (quoted prices in active markets). When quoted prices are not
available, fair value is determined based on valuation models that use inputs that include market
observable inputs. These inputs included recent trades, yields, price quotes, cash flows, maturity, credit
ratings, and other assumptions based upon the specifics of the investment's type.
76
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Equity Securities - These include domestic and international equities. Domestic securities traded on a
national securities 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. International equities are valued based
upon quoted foreign market prices and translated into U.S. dollars at the exchange rate in effect at
September 30, 2018. Securities which are not traded on a national security exchange are valued by the
respective fund manager or other third parties based on yields currently available on comparable
securities of issuers with similar credit ratings.
Alternative Investments - These investments include private equity and real estate equity investments
where no readily ascertainable market value exists. To value these investments, management, in
consultation with the general partner and investment advisors, determines the fair values for the
individual investments based upon the partnership's or limited liability company's most recent available
financial information adjusted for cash flow activities through September 30, 2018. The estimated fair
value of these investments may differ from values that would been used had a ready market existed.
The following table displays information regarding the FIPO Trust's investments that use net asset value
(NAV) per share (or equivalent) to value investments.
Redemption Redemption
Investment Type Balance Frequency Notice Period
Commingled Domestic Fixed Income Funds $ 78,402,852 Daily Same day
Absolute Return Funds 75,013,697 Quarterly 30 Days
Commingled International Equity Funds 28,761,868 Daily Same day
Commingled Domestic Equity Funds 171,857,894 Daily Same day
Mutual Funds 26,264,409 Daily Same day
Total Investments Measured at the NAV $ 380,300,720
• Commingled domestic fixed income funds consist of two commingled investment vehicle which
primarily invests in publicly traded domestic commercial mortgage backed securities. The
investment is valued at the net asset value of units held at the end of the period based upon the
fair value of the underlying investments.
• Absolute return funds aim to provide positive investment returns in all market conditions over the
medium to long-term. The funds are actively managed, with a wide investment remit to target a
level of return over rolling three-year periods equivalent to cash plus five percent a year, gross of
fees. They exploit market inefficiencies through active allocation to a diverse range of market
positions. The funds use a combination of traditional assets (such as equities and bonds) and
investment strategies based on advanced derivative techniques, resulting in a highly diversified
portfolio. The funds can take long and short positions in markets, securities and groups of
securities through derivative contracts.
• Commingled international equity funds consist of a commingled investment vehicles which invest
primarily in publicly traded global equity securities. The funds are valued at the net asset value
of units held at the end of the period based upon the fair value of the underlying investments.
77
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
• Commingled domestic equity funds consist of three comingled investment vehicle which invests
primarily in publicly traded equity securities. The funds are valued at the net asset value of units
held at the end of the period based upon the fair value of the underlying investments.
• Mutual funds are open-end mutual funds that are registered with the Securities and Exchange
Commission. These funds are required to publish their daily NAV and to transact at that price.
They are determined to be actively traded.
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, 2018, are as follows:
Investment Type
Balance
GESE Staff
Trust Trust
U.S.Government and Agency Securities $ 107,958,385 $
Corporate Stocks 499,478,556 3,164,224
Corporate Bonds 68,574,982 1,016,069
Money Market Funds and Commercial Paper
676,011,923 4,180,293
25,319,528
Total Investments $ 701,331,451 $ 4,180,293
Fair Value Measurements — The GESE Trust and Staff Trust categorizes its investments in accordance
with the fair value hierarchy established by GASB 72.
78
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The following table summarizes the valuation of the GESE Trust and Staff Trust investments in
accordance with the GASB 72 fair value hierarchy levels as of September 30, 2018:
GESE Trust
Investments by level Balance
Debt Securities:
US Government and Agency Securities
Corporate Bonds
Mortgage Bonds
Total Debt Securities
Equity Securities:
Corporate Stocks
Real Estate Equity
Total Equity Securities
Total Investments by fair value level
Staff Plan
Balance
$ 68,975,995 $
68,574,982
38,982,389
176,533,366
293,225,758
293,225,758
469,759,124
Investments Measured at The Net Asset
Value (NAV)
International Equities Commingled 59,582,376
Domestic Commingled Funds 146,670,422
Money Market Funds 25,319,528
(Staff) _ - 4,180,293
Total Investments measured at the NAV 231,572,326 4,180,293
Total Investments Measured at Fair Value $701,331,450 $ 4,180,293
Fair Value Measurements
Using
Quoted
Prices in
Actives
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
$ 38,099,245 $ 30,876,750
8,231,522 60,343,460
6,173,347 32,809,042
52,504,114 124,029,252
293,225,758
293,225,758
$345,729,872 $124,029,252
Debt Securities - Debt securities consist primarily of negotiable obligations of the U.S. government and
U.S. government -sponsored agencies, corporations, securitized offerings backed by residential and
commercial mortgages, TIPS and foreign debt securities. These securities can typically be valued using the
close or last traded price on a specific date (quoted prices in active markets). When quoted prices are not
available, fair value is determined based on valuation models that use inputs that include market observable
inputs. These inputs include recent trades, yields, price quotes, cash flows, maturity, credit ratings, and
other assumptions based upon the specifics of the investment's type.
Equity Securities - These include domestic and international equities. Domestic securities traded on a
national securities 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. International equities are valued based upon quoted
foreign market prices and translated into U.S. dollars at the exchange rate in effect at September 30, 2018.
Securities which are not traded on a national security exchange are valued by the respective fund manager
or other third parties based on yields currently available on comparable securities of issuers with similar
credit ratings.
79
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The following table displays information regarding the GESE Trust and Staff Trust investments that use
Net Asset Value (NAV) per share (or equivalent) as their fair value measurement:
Balance Redemption
Investment Type Frequency
International Equities Commingled $ 59,582,376 Monthly
Domestic Commingled Funds SSGA 146,670,422 Daily
Money Market Funds 25,319,528 Daily
Staff- (Vanguard) 4,180,293 Daily
Total Investment Measured at the NAV $ 235,752,619
GESE Trust
The investment policy, approved by the Board of Trustees for the GESE Trust, stipulates the permissible
investments and the allowable long-range asset allocation, measured at market value at the end of each
quarter. The investment objectives are to achieve rates of return that equal or exceed actuarial interest
rate, and performance results that rank in the top half of the investment consultants universal 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 GESE Trust. The GESE 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. Please refer to Pension Note 10
for additional detail regarding GESE Trust.
The GESE Trust has adopted the following asset allocation policy as of September 30, 2018:
Asset Class Target Allocation
U.S Large Cap Equity 48%
U.S Small Cap Equity 9%
International Equity 10%
U.S Fixed Income 30%
Real Estate 0%
Cash and Other 3%
100%
80
CITY OF NIIANII, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Interest Rate Risk — The GESE Trust limits the maturities of investments to control this risk. The GESE
Trust investment policy requires that the average maturity of the fixed -income asset class be targeted
within a range of three to ten years. In addition, each manager is expected to keep its maturity at +/- one
year of the benchmark duration. The GESE Trust utilizes duration to manage its risk to changes in
interest rates.
The following represents investment value and weighted average maturity of the GESE Trust
investments at September 30, 2018:
Weighted Avg.
Investment Type Fair Value Maturity Years
Other Government $ 351,000 11.94
Asset - Backed 2,503,000 1.32
Corporate Bonds - Bank 15,350,000 1.84
Corporate Bonds - Finance 14,996,000 3.68
Corporate Bonds - Industrial 26,974,000 5.86
Corporate Bonds - Transportation 1,515,000 5.90
Corporate Bonds - Electric Utility 1,747,000 8.95
US Treasury Bonds 11,738,000 17.11
US Treasury Notes 57,639,000 4.96
US Agency 4,260,000 0.14
Yankee - Finance 1,021,000 3.12
Yankee - Industrial 1,906,000 6.89
Mortgages 37,963,000 20.96
Foreign Bonds 810,000
Total $ 178,773,000
Credit Risk — The GESE Trust utilizes portfolio diversification as well as limiting investments to the
highest rated securities as rated by nationally recognized rating agencies. The GESE Trust's Investment
Policy limits credit risk by requiring fixed -income securities to be rated by Moody's as a Baa3/BBB- or
better. However, a maximum of 20 percent of each manager's portfolio may be invested in high yield
securities rated by Moody's/S&P as Caa/CCC or better.
81
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
At September 30, 2018, the following table displays Moody's ratings and the fair value of GESE Trust's
fixed -income portfolio investments:
Investment Type/Rating Fair Value
US Treasury* $ 69,379,000
US Agency* 4,260,000
Other Government** 351,000
Asset -Backed** 2,503,000
Mortgages** 37,962,000
Aaa 496,000
Aa 3,318,000
A 36,813,000
Baa 21,447,000
Ba 976,000
B 325,000
Not Rated 133,000
Cash 810,000
Total $ 178,773,000
* 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 GESE
Trust will not be able to recover the value of its investments that are in the possession of an outside
party. The GESE Trust utilizes an independent custodial safekeeping agent for its investments. The
GESE Trust's custodial credit is limited because its investments are registered in the name of the plan.
Concentration of Credit Risk — The GESE Trust utilizes limitations on securities of a single issuer or
industry to manage this 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 7 percent (at market) of the value of the portfolio. Single industry weightings will be a
maximum of 25 percent, except U.S. government and agency securities. 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 concentration of credit risk. At September 30, 2018, the
GESE Trust did not have any corporate bond investments with issuers greater than 5 percent.
Foreign Currency Risk — The GESE Trust Investment policy allows a maximum of 20 percent of each
manager's portfolio to be invested in aggregate to Yankee bonds, foreign credits, Eurodollar bonds, and
Rule 144A securities. At September 30, 2018, the GESE Trust did not have any foreign denominated
fixed income investments.
82
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
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.
The Staff Trust has adopted the following asset allocation policy as of September 30, 2018:
Asset Class Target Allocation
U.S Large Cap Equity 48%
U.S Small Cap Equity 9%
International Equity 10%
U.S Fixed Income 30%
Cash and Other 3%
100%
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 held passive mutual funds is 6.1 years.
Credit Risk — The Staff Plan utilizes portfolio diversification in order to limit this risk as well as
limiting investments to the highest rated securities as rated by nationally recognized rating agencies. The
Staff Plan Investment Policy limits credit risk by requiring all fixed income securities to be rated by
Moody's/S&P as a Baa3/BBB- or better.
The Board of Trustees for the GESE Trust has elected to hire outside investment professionals to manage
the assets for the Staff Trust. As of September 30, 2018, the fixed income assets of the Staff Trust were
invested in a mutual fund managed passively by Vanguard.
The value of the fixed income portfolio was approximately $1,019,800. Vanguard manages the assets in
accordance with the investment policy statement approved by the trustees.
83
CITY OF NIIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The table below summarizes Staff Trust investments by credit rating at September 30, 2018:
Investment Type/Rating Fair Value
Government* $ 678,200
Aaa 18,400
Aa 46,900
A 120,300
Baa 156,000
Total $ 1,019,800
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 investments.
Custodial credit risk is limited since its investments are held in independent custodial safekeeping
accounts, external investment pools, and/or open-end mutual funds are registered in the Plan's name. All
cash in each money manager's portfolio is swept into a money market mutual fund on a daily basis.
Concentration of Credit Risk — The Staff Trust utilizes limitations on securities of a single issuer or
industry to manage this risk. Investments issued or explicitly guaranteed by the U.S. government and
investments in mutual funds, external investment pools and other pooled investments are excluded from
this requirement. The Staff Trust investment policy requires that corporate bond issues must be
diversified by industry and in number so that no investment in the securities of a single issue shall
exceed 20 percent (at market) of the value of the portfolio. Single industry weightings will be a
maximum of 20 percent, except U.S. government and agency securities. As of September 30, 2018, the
Staff Trust did not have any positions with issuers greater than 5 percent.
Foreign Currency Risk — The Staff Trust Investment policy prohibits investments in foreign currency
denominated securities and is therefore not exposed to foreign currency risk.
Elected Officer's Retirement Trust (EORT)
The EORT Trust follows the City's investment policy. As September 30, 2018, the investments of
EORT are as follows:
Investment Type Fair Value
U.S. Treasuries $ 2,490,225
Federal National Mortgage Association 1,993,940
Federal Home Loan Bank 1,997,340
Money Market Fund 721,637
Total $ 7,203,142
84
CITY OF NIIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The EORT has the following target asset allocation as of September 30, 2018:
Asset Class Target Allocation
U.S Fixed Income 80%
Cash 20%
100%
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, 2018, 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.
Weighted Average
Investment Type Maturity In Years
United States Treasury Notes 0.33
Federal National Mortgage Association 0.33
Federal Home Loan Bank 0.33
Money Market Funds Less than 1 year
The investments at September 30, 2018, were in compliance with the City's investment policy at the
time of purchase.
Credit Risk — The Plan's investment policy minimizes credit risk by restricting authorized investments
to the highest ratings of at least one of the nationally recognized statistical rating organizations
(NRSROs). Investments in the State Board of Administration, The Local Government Surplus Funds
Trust Fund, do not have a rating from the NRSRO. Commercial paper and bankers acceptances must
have the highest letter and numerical rating as provided for by at least one NRSRO. At September 30,
2018, all of the Plan's investments were held in Government Agencies and Money Market Funds.
Money Market Funds are authorized by the City's investment policy, but are not rated by the major
rating agencies.
Custodial Credit Risk — This is the risk that in the event of the failure of the counterparty, the Plan will
not be able to recover the value of its investments or collateral securities that are in the possession of an
outside party. The EORT Plan utilizes an independent custodial safekeeping agent for its investments.
All investments are held by the plans custodial bank and registered in the plan's name.
Concentration of Credit Risk — The Plan's policy establishes limitations on portfolio composition by
investment type and by issuer to limit its exposure to concentration of credit risk. The policy provides
that a maximum of 20 percent of the portfolio may be invested in SEC registered money market funds
with no more than 10 percent to any single money market fund. A maximum of 100 percent of available
funds may be invested in the Local Governments Surplus Funds Trust Fund. A maximum of 100 percent
85
CITY OF MIANII, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
of the total portfolio may be invested in U.S. Government securities and federal instruments, with a limit
of 25 percent invested in any one issuer of federal instruments. A maximum of 35 percent of the
portfolio may be invested in prime commercial paper with a maximum of 5 percent with any one issuer.
A maximum of 10 percent of the portfolio may be invested in banker's acceptances with a maximum of
5 percent with any one issuer. At September 30, 2018, the EORT Trust did not have any positions with
issuers greater than 5 percent.
Fair Value Measurements — The EORT categorizes its investments within the fair value hierarchy
established by GASB 72.
The following table summarizes the valuation of the EORT's investments in accordance with GASB 72
fair value hierarchy levels as of September 30, 2018:
Investments by level:
Debt Securities:
Federal Home Loan Bank
Money Market Fund
United States Treasury Notes
Federal National Mortgage Association
Total Investments by fair value level
Fair Value
$
1,997,340
721,637
2,490,225
1,993,940
$ 7,203,142
Fair Value
Measurements Using
Significant Other
Observable Inputs
(Level 2)
$ 1,997,340
721,637
2,490,225
1,993,940
$ 7,203,142
86
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
NOTE 3. — RECEIVABLES
Receivables at year-end for the City in individual major and non -major funds in the aggregate, including
the applicable allowance for uncollectible accounts are as follows:
Receivables
Accounts
Property Tax
Due From Other Governments
Loans Receivable
Gross Receivables
Less: Allowance for
Uncollectibles
Net Total Receivables
Other Capital Emergency
General Projects impact Fee Services
$ 49,357.692 $ 2,099,650 $ 252,033 $
2,664,532 -
6,912,043 16,103,469 6,444,780
Non -Major
Govt Funds
$ 5,633,928
216,844
13,857,236
13,823,713
Total
$ 57,343,303
2,881,376
43,317,528
13,823,713
58,934,267 18,203,119
(18,654,834) (2,098,050)
$ 40,279,433 $ 16,105,069
252,033 6,444,780 33,531.721 117,365,920
(252,033)
$
(15,561,177) (36,566,094)
$ 6,444,780 $ 17,970,544 $ 80,799.826
The City, the County, HUD and Parrot Jungle and Gardens of Watson Island Inc. (Jungle Island) entered
into various agreements that allowed Jungle Island to obtain a $13.8 million loan as presented above as
loan receivable for the City, to fund construction of the Parrot Jungle Project.
On November 17, 2011, the City, Miami -Dade County, and the U.S. Department of Housing and Urban
Development ("HUD") amended their May 13, 2001 Assumption of Loan Guarantee Assistance
Liability and Pledge Agreement in order to refmance the Parrot Jungle Project HUD Section 108 Loan
under a new note at a lesser interest rate for the then outstanding principal amount of $15.6 million. The
refinancing under the new note remained in accordance with the pro-rata payment obligations under a
continuing agreement for the Parrot Jungle Project HUD Section 108 Loan, whereby the City's pro-rata
payment obligations remain 80 percent and the County's pro-rata payment obligations remain 20
percent.
The City and the County have multiple continuing agreements, which have been amended over time with
Parrot Jungle and Gardens of Watson Island, Inc. and its various related entities (now known collectively
as "Jungle Island"), regarding, inter alia, (1) the borrowing by Jungle Island of the Parrot Jungle Project
HUD Section 108 Loan proceeds from the County and the City, (2) the leasing by Jungle Island of City -
owned property for the construction of the Project, (3) City and County payments to HUD for the Parrot
Jungle Project HUD Section 108 Loan due to Jungle Island's inability to pay during construction and
start-up of the Project, and (4) another loan from the City to Jungle Island of $800,000 for the payment
of ad valorem taxes on the Jungle Island property to the County. At this time, Parrot Jungle's payment
obligations to the City are as follows:
1. Parrot Jungle Project HUD Section 108 Loan Deferred Payments will begin August 1, 2019 to
repay the City's approximately $13.8 million. The City has recorded an allowance for the full
amount of this receivable.
2. Regular Lease Rent Payments began April 1, 2013, whereby Jungle Island will pay the rent
based upon a "Gross Revenues" monthly calculation. As of September 30, 2018, rental payment
to the City are current.
87
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
3. Deferred Lease Rent Payments due from Jungle Island to the City based upon a minimum
rent/percentage rent calculation formula. The deferred rent amounts to $1.6 million and any
percentage rent due. Jungle Island shall pay to the City the deferred rent on or before December
31, 2020. Given the uncertainty of the collections related to this amount, it is not recognized in
the City's fmancial statements.
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, generally are repaid when the related properties are transferred or sold.
If the property is transferred or sold before the end of the loan period, the proceeds from the repayment
including interest, if any, are then returned to the program to assist additional low-income families. If the
homeowners remain in their homes for the full term of the deferred loan, the loan is forgiven and
becomes a grant. A mortgage or a covenant is placed against the property to ensure the repayment of the
loan and interest. Given the nature of these loans, collection is not assured, consequently they are not
recognized in the City's fmancial statements.
A summary of single-family, deferred long-term loans that are not recognized in the City's fmancial
statements, as of September 30, 2018, are as follows:
Program Loans Outstanding Amount
CDBG 52 loans S 2,092,224
HOME 552 loans 25,335,813
SHIP 309 loans 15,610,723
Other 35 loans 1,793,602
Total 948 loans $ 44,832,362
Multi -Family Rental Loans
As of September 30, 2018, there are 103 projects aggregating to $82.3 million 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 unit 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, collections are not assured,
consequently they are not recognized in the City's fmancial statements.
88
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Economic Development Commercial Loans
As of September 30, 2018, there are 9 loans aggregating to $7.5 million for special economic
development projects under the CDBG program. Those projects are collateralized by placing a mortgage
against the property of the business or non-profit entity's assets to ensure repayment of the loan and
interest to the City. Some of these loans are written with no interest payment or deferred payments and
are forgivable, if all program conditions are met. Given the nature of these loans, collection is not
assured, consequently they are not recognized in the City's financial statements.
NOTE 4. — PROPERTY TAXES
Property taxes are assessed according to the value determined by the Miami -Dade County Property
Appraiser on January 1 st of each year and are due, with discounts of one to four percent allowed if paid
prior to March 1" of the following calendar year. In accordance with Florida Statute 197.122, taxes
become an enforceable lien on the assessed property at this time. Taxes are levied after the millage rate
is certified in September of each 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 percent and 4 percent. All unpaid taxes on real and personal property become delinquent on
April 1" and bear interest at 18 percent 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, 2017, upon which the 2017-2018 levy was based, was $53.4 billion. The City is permitted by Article
7, Section 8 of the Florida Constitution to levy taxes up to ten dollars per $1,000 of assessed valuation
for general governmental services other than the payment of principal and interest on general obligation
long-term debt. In addition, unlimited amounts may be levied for the payment of principal and interest
on general obligation long-term debt, subject to a limitation on the amount of debt outstanding. The tax
rate to finance general governmental services (other than the payment of principal and interest on general
obligation long-term debt) for the year ended September 30, 2018, was $7.58650 per $1,000. The debt
service tax rate for the same period was $0.4435 per $1,000.
Property taxes receivable reported in the government -wide statement of net position and the
governmental funds balance sheet represent amounts due for unpaid delinquent property taxes at
September 30, 2018. Property taxes that are not considered "available" have been reported as deferred
inflows in the governmental funds balance sheet.
89
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
NOTE 5. — CAPITAL ASSETS
The following is a summary of changes in capital assets during the year ended September 30, 2018:
Primary Government
Beginning Additions/ Retirements/ Ending
Balance Transfers In Transfers Out Balance
Governmental Activities:
Capital assets, not being depreciated:
Land $ 103,511,914 $ 7,961,130 $ (84,570) $ 111,388,474
Construction in progress 83,996,468 48,253,853 (28,075.862) 104,174,459
Total Capital Assets, not being depreciated 187,508,382 56,214,983 (28,160,432) 215,562,933
Depreciable Assets:
Buildings 354,840,090 4,014,684 358.854,774
Improvements 303,419,073 8,166,233 311,585,306
Machinery and equipment 257,924,474 23,028,374 (7,200,728) 273,752,120
Infrastructure 1,417,084,546 9,180,214 (84,103) 1,426,180,657
Total capital assets being depreciated 2,333,268,183 44,389,505 (7,284,831) 2.370.372,857
Less Accumulated Depreciation for:
Buildings 134,142,924 8,316,168 142,459,092
Improvements 196,850,181 21,740,561 218,590,742
Machinery and Equipment 186,428,648 23,417,772 (6,753,596) 203,092,824
Infrastructure 874.049,792 34,580,064 (77.621) 908,552,235
Total accumulated depreciation 1,391,471,545 88,054,565 (6,831,217) 1,472,694,893
Total capital assets being depreciated, net 941,796,638 (43,665,060) (453,614) 897,677,964
Governmental activities capital assets, net $ 1,129,305,020 $ 12,549,923 $ (28,614,046) S 1,113,240.897
Depreciation expense was charged to governmental functions as follows:
Function/Program Activities Depreciation Expenses
General Government $ 49,226,310
Planning and Development 491,583
Community Development 170,446
Community Redevelpment Areas 1,280,280
Public Works 7,069,728
Public Safety 15,934,052
Public Facilities 3,426,717
Parks and Recreation 10,455,449'
Total depreciation expense $ 88,054,565
Construction Commitments
As of September 30, 2018, the City had various construction projects in progress that were not
completed with remaining balances that totaled approximately $49.5 million. Funding of these projects
will be made primarily from proceeds of the bond issues, loans, future tax revenues and grants.
90
CITY OF NIIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Discretely Presented Component Units Capital Assets
The following is a summary of changes in capital assets of the City's component units during the year
ended September 30, 2018:
MSEA, CIP, and WBID did not have any capital asset balances at September 30, 2018.
A summary of the changes in capital assets for Department of Off -Street Parking (DOSP) is as follows:
DOSP
Capital assests, not being depreciated:
Land
Construction in progress
Total capital assets, not being depreciated
Capital assets being depreciated
Building and structures
Leasehold improvements
Furniture and fixtures
Equipment
Total capital assests being depreciated
Less accumulated depreciation for:
Building and structures
Leasehold improvements
Furniture and fixtures
Equipment
Total accumulated depreciation
Total capital assets being depreciated, net
DOSP capital assests,net
Beginning
Balance
$ 5,937,211
2.294,467
8,231,678
68,291,487
10,936,777
874,970
13,341,018
93,444,252
28,054,517
10,106,396
501,964
11,748,604
50,411,481
43,032,771
51.264,449
Additions/ Retirements/
Transfers In Transfers Out
4,060,810
4,060,810
340,015
115,848
Ending
Balance
8
1,118,825 (121,740)
1,574,688 (121,740)
1,937,181
146,076
53,721
516,986
2,653,964
(1,079,276)
(99,651)
(99,651)
(22,089)
2,981,534 $ (22,089)
$ 5,937,211
6,355,277
12,292,488
68,631,502
11,052,625
874,970
14,338,103
94,897,200
29,991,698
10,252,472
555,685
12,165,939
52.965,794
41,931,406
$ 54,223,894
91
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
A summary of the changes in capital assets for Downtown Development Authority (DDA) is as follows:
Capital assets being depreciated:
Furniture and equipment
DDA
Beginning Additions/ Retirements/ Ending
Balance Transfers In Transfers Out Balance
$ 695,633 $ 32,780 S - $ 728,413
Less accumulated depreciation for:
Furniture and equipment 440,556 64,069 504,625
DDA capital assests, net
$ 255,077 $ (31,289) $ $ 223,788
A summary of changes in capital assets for Bayfront Park Management Trust (BFP) is as follows:
BFP
Beginning Additions/ Retirements/ Ending
Balance Transfers In Transfers Out Balance
Capital assets, not being depreciated:
Land $ 516,129 $ - $ - $ 516,129
Total capital assets, not being depreciated 516,129 516,129
Capital assets, being depreciated:
Buildings 2,637,934 2,637,934
Public domain and system infrastructure 8,085,306 663,611 8,748,917
Machinery and equipment 817,629 22,454 - 840,083
Total capital assets being depreciated 11,540,869 686,065 - 12,226,934
Less accumulated depreciation for:
Buildings 1,546,549 52,759 - 1,599,308
Public domain and system infrastructure 3,517,080 368,511 3,885,591
Machinery and equipment 536,576 47,751 584,327
Total accumulated depreciation 5,600,205 469,021 - 6,069,226
Total capital assets being depreciated, net 5,940,664 217,044 6,157,708
BFP capital assets, net
$ 6,456,793 $ 217,044 $ - $ 6,673,837
92
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
A summary of changes in capital assets for Coconut Grove Business Improvement District (CGBID) is
as follows:
CGBID
Beginning Additions/ Retirements/ Ending
Balance Transfers In Transfers Out Balance
Capital assets being depreciated:
Furniture and equipment $ 647,774 $ 54,428 $ $ 702,202
Less accumulated depreciation for:
Furniture and equipment 68,626 74,544 143,170
CGBID capital assests, net
$ 579,148 $ (20,116) $ $ 559,032
Summary of the discretely presented component units capital assets at September 30, 2018 are as
follows:
DOSP DDA BFP CGBID Total
Capital Assets:
Non -depreciable $ 12,292,488 $ - $ 516,129 $ - $ 12,808,617
Depreciable, net 41,931,406 223,788 6,157,708 559,032 48,871,934
Total $ 54,223,894 $ 223,788 $ 6,673,837 $ 559,032 $ 61,680,551
Depreciation expenses were charged to the discretely presented component units as follows:
Entity Depreciation Expense
DOSP $ 2,653,964
DDA 64,069
BFP 469,021
CGBID 74,544
Total depreciation expense S 3,261,598
93
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
NOTE 6. — ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable and accrued liabilities reported in the governmental funds balance sheet at September
30, 2018, consisted of the following:
Other Capital
General Projects
Impact Fee
Emergency
Services
Non -Major
Governmental
Funds
Total
Accounts Payables
Retainage
Salaries and Benefits
Total
$12,961,601 $9,821,425
54,280 4,810,950
27,945,085
$ 40,960,966 $ 14,632,375
$3,887,581.
460,428
$ 4,348,009
$545,585 $12,227,808
1,615,777 2,023,200
11,703 896,634
$ 2,173,065 $ 15,147,642
$39,444,000
8,964,635
28,853,422
$ 77,262,057
NOTE 7. — INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The balances reflected as due from/due to other funds reported as of September 30, 2018 are as follows:
Receivable Fund
General Fund
General Fund
General Fund
Payable Fund Amount
Other Capital Projects
Emergency Services
Non -Major Governmental Funds
7,823,188
21,745,950
3,820,336
Total $ 33,389,474
These outstanding balances between funds result mainly from the time lag between the dates that (a)
reimbursable expenditures occur, (b) transactions are recorded in the accounting system, and (c) payments
between funds are made. The interfund payable balance of $21,745,950 is attributed to expenditures
related to Hurricane Irma. The City expects to receive grant reimbursement in the ensuing fiscal year
which will be used to liquidate the amounts owed to the general fund.
The following is a summary of interfund transfers reported for the fiscal year ended September 30, 2018:
Transfer Out
General
Other Capital Projects
Nonmajor Governmental Funds
Total
Transfer In
General
Other Capital
Projects
Non -Major
Governmental
Funds
Total
476,000
5,687,609
$ 35,500,000 $47,153,000
7,206,976 22,733,943
$82,653,000
476,000
35,628,528
$ 6,163,609 $ 42,706,976 $ 69,886,943 $ 118,757,528
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 for debt service from
94
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
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.
During the fiscal year, transfers from the General fund to other funds totaled $82.7 million. This total was
comprised of transfers of $35.5 million for Other Capital Projects fund and $47.2 million for other Non -
Major Governmental funds including Special Obligation Bonds (SOB).
The $35.5 million transferred to Other Capital Projects were allocated to various capital improvement
projects, including $4.4 million for Police and Fire, $3.8 million for Parks' projects, $4.6 million for
general government functions such as IT and Communications, $5.0 million for capital improvements to
Public Facilities, $11.8 million for public works functions such as Solid Waste and General Services
Administration (GSA), and $5.9 million for the Building Department.
The $47.2 million transferred from the General fund to other Non -Major funds consists of several
allocations. The most relevant ones are the following: $25.1 million for the payment of debt services from
the Public Service Tax, Parking Surcharge and Local Option Fuel Tax. Payments for debt service are an
allowable use of these revenue sources. $6 million to Police Special Revenue fund to cover cost
allocation, and some deficits of programs such as E-911, VOCA and COPS, $4.4 million contribution to
pay for Vehicle Lease debt service, $6.5 million to Departmental Improvement Initiatives Special
Revenue fund to fund programs such as Citywide anti -Poverty Initiative Program, Workforce, Live
Healthy Little Havana, Citywide festivals and special events, and Camillus House BED program, $1.3
million to cover the cost of a property intended to be the Public Works maintenance yard and $1.8 million
for citywide Radio Communication System.
Also included in this fiscal year's transfers is $35.6 million from Non -Major Governmental funds. This
total was comprised of $5.7 million to the General fund, $7.2 million to Other Capital Projects and $22.7
million to other Non -Major Governmental funds.
The $5.7 million to the General fund consists primarily of $1.1 million contribution to the James L
Knight Center operations from a Special Revenue Fund to the General Fund, $3.2 million transfer of
Increment Revenues from South East Park West (SEOPW) Community Redevelopment Agency (CRA)
pursuant to Section 5(e) of the Global Agreement and $0.8 million from the SEOPW CRA to reimburse
the City for the Sunshine Loan payment related to Gibson Park.
The $7.2 million to Other Capital Projects include amongst other: $3 million contribution from the Lane
closure fund to Public Works projects and $1.8 million from Tree Trust funds to the Public Works
projects.
The most relevant transfers included in the $22.7 million to other Non -Major Governmental funds are:
$1.3 million from Planning Special Revenue fund to Bayfront Park Land Acquisition Trust fund, $5.2
million from the OMNI and SEOPW CRAs Special Revenue funds to the CRA Debt Service funds to
cover the CRAs bond payments, $3.7 million from the Transportation and Transit Special Revenue fund
to the Transportation and Transit Capital fund, $4.2 million contribution from the OMNI CRA Special
Revenue fund to applicable Special Obligation Bond debt, $6.1 million contribution from Transportation
and Transit to Streets and Sidewalks' bonds payments and $2 million from the Marlins Garage to SOB
debt.
95
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Finally, in FY 2018, $476,000 were transferred out of Other Capital Projects funds to the General fund to
re -allocate prior year revenues from the Miami Rowing Club that were previously deposited in the Parks
Capital Fund.
NOTE 8. — LONGTERM OBLIGATIONS
Changes in Long -Term Obligations
The following is a summary of changes in long-term obligations reported for the year ended September
30, 2018:
Primary Government
General Obligation Bonds
Special Obligation and Revenue Bonds,
Loans and Leases
Bond Premium (Discounts)
Total Bonds, Loans and Leases
Other Liabilities:
Compensated Absences
Claims Payable and other liabilities
Other Post Employement Benefits
Net Pension Liability
Total Governmental Activities
Long -Term Liabilities
Restated
Beginning
Balance
$ 174,640,000 $
486,221,380
660,861,380
Additions Reduction
- $ (20,255,000)
132,556,675 (107,449,963)
132,556,675 (127,704.963)
Ending Due within
Balance One Year
$ 154,385,000 $ 19,070,000
511,328,092 36,648.125
665,713,092 55.718,125
6.436,510
667,297,890
50,015,248
209,426,429
630,398,513
912,815,751
(1,566,708)
132,556,675 (129,271,671)
23,838,902
160,812,867
(16,245,872)
(88,872,723)
(33,431,998)
(52,063,291)
4,869,802 -
670,582,894 55,718,125
57,608,278
281,366,573
596,966,515
860,752,460
10,845,920
54,985,263
$ 2,469,953,831 $ 317,208,444
$ (319,885,555)
$ 2,467,276,720 $ 121,549,308
Claims payables, compensated absences, net pension liability, and other post -employment benefits are
generally liquidated by the General Fund.
Claims payable balance of $281.4 million includes an accrual of $1.6 million for pollution remediation
obligations, which are obligations to address the current or potential detrimental effects of existing
pollution and $86.7 million for potential legal claims as discussed in Note 12. Claims payables of $193.1
million reported in connection with the City's self-insurance program is discussed in Note 9.
The other postemployment benefits liability balance was restated at October 1, 2017 for the
implementation of GASB Statement No. 75 in the amount of $173 million. See Note 1.
96
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Bonds, Loans and Leases Outstanding — The following presents the City's bonds, loans and leases
outstanding at September 30, 2018:
DESCRIPTION
General Obligation Bonds:
Homeland Defense/Neighborhood CIP
Series 2009 (Limited)
General Obligation Refunding Bond Series 2015
General Obligation Refunding Bond Series 2017
Total General Obligation Bonds
Special Obligation and Revenne Bonds, Loans and
Special Obligation Non -Ad Valorem Revenue
Series 1995
Special Obligation Non -Ad Valorem Refunding
Bonds Series 2009
Special Obligation Tax -Exempt Revenue Bonds
Series 2010A
Special Obligation Tax Revenue Bonds, Garages
Series 2010B
Special Revenue Bonds
Series 2007
Special Revenue Bonds
Series 2009
Special Obligation Non -Ad Valorem
Refunding 2012
Special Obligation Refunding Bonds
Series 2011-A
Special Obligation Bonds
Series 2017
Special Obligation Refunding Bonds
Series 2014
Special Obligation Refunding Notes
Series 2017
Special Obligation Refunding Note Pension
Series 2017
Special Obligation Refunding Note Garage
Series 2018
CRA SEOPW Tax Increment Revenue Bonds
Series 2014A-1
CRA OMNI Tax Increment Revenue Bonds
Series 2018A
CRA OMNI Tax Increment Revenue Bonds
Series 2018B
Gran Central Corporation Loan
Vehicle Replacement Program Series 2016
Vehicle Replacement Program Series 2017
Vehicle Replacement Program Series 2018
Dell Financial Services Lease 2018
P25 Citywide Radio Equip. Lease
State Revolving Fund Loan
Purpose of
Issue
Homeland Defense
Refunding
Refunding
Leases:
Pension
Refunding
Parking
Parking
Street & Sidewalks
Street & Sidewalks
Refunding/Port
Tunnel
Refunding
Park Improvements
Refunding
Refunding
Refunding
Refunding
Redevelopment
Redevelopment
Redevelopment
Redevelopment
Vehicle Lease
Vehicle Lease
Vehicle Lease
Equipment Lease
Radio System Lease
Wagner Creek
Total Special Obligation Bonds, Revenue Bonds, Loans and Leases
Total Bonds, Loans and Leases
Maturity
Date
I/1/2019
I/1/2028
1/1/2029
Amount Outstanding
Issued Balance
$ 51,055,000 S 2.460,000
57,240,000 52.910,000
114,380,000 99,015,000
222,675,000 154,385,000
12/1/2020 72,000,000 10,935,000
12/1/2025 37.435,000 13.120,000
7/1/2039 84,540.000 84,540,000
7/1/2027 16,830,000 925,000
1/1/2037 80,000,000 63,595,000
1/1/2039 65,000.000 56,725,000
3/1/2030 44,725,000 38,065,000
2/1/2031 70,645,000 11,120,000
1/1/2032 27,160,000 25,665.000
7/1/2026 18,049,380 8,049_239
2/1/2031 59,310,000 58,020,000
12/1/2025 7,180,000 7,180,000
7/1/2027 16,555,000 16,555,000
3/1/2030 50,000,000 41,135.000
9/1/2029 10,000.000 9,555,000
Interest Rate
Range
5.000° o
2.640%
2.170%
7.200%
6.750%- 7.000%
5.000%-5.250%
5.9375%
4.250%-5.250%
4 25%-5.625%
5.000%
4.794%-4.973%
2.560%
3.280%
2.7803%
3.15014,
3.750%
5.000%
3.250%
9/1/2029 15,000,000 15.000,000 4.490%
N/A 1,708.864 1,708,864 0.000%
1/1/2021 10,644,628 6,416,694 1.6765%
1/1/2022 10,054,922 8,132,449 2.1856%
1/1/2023 11,270,011 11,270,011 3.1032%
6/1/2022 373,938 291,858 4.8810%
1 / 1 /2024 12,100,000 10,456, 251 2.0590%
N/A 12,867,726 12,867,726 0.000%
733,449,469 511,328,092
$ 956,124,469 $ 665,713,092
97
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Annual Debt Service Requirements to Maturity
At September 30, 2018, the annual debt service requirements for all bonds, loans and leases, other than
state revolving fund loan for uncompleted Wagner Creek project, over the life of the debt is listed below:
Year
Ended
September 30,
2019
2020
2021
2022
2023
2024-2028
2029-2033
2034-2038
2039-2043
Total
General
Obiligation Bonds
Principal Interest
$ 19,070,000 $ 3,423,817
20,075,000 2,957,634
20,895,000 2,506,753
23,065,000 2,026,603
8,255,000 1,668,416
59,165,000 4,189,496
3,860,000 41,881
$ 154,385,000 $ 16,814,600
Long -Term Debt Issued
Special Obligation,
Revenue Bonds,
Loans and Leases
Principal Interest
$ 36,648,125
37,487,377
34,085,298
29,012,777
27,774,665
137,787,747
109,388,238
85,300,000
13,843,865
$ 21,464,214
19,724,868
18,221,579
17,047,859
16,042,978
64,805,489
37,542,253
16,414,719
411,741
$ 511,328,092 $ 211,675,700
Total
Principal Interest
$ 55,718,125
57,562,377
54,980,298
52,077,777
36,029,665
196,952,747
113,248,238
85,300,000
13,843,865
$ 24,888,031
22,682,502
20,728,332
19,074,462
17,711,394
68,994,985
37,584,134
16,414,719
411,741
$ 665,713,092 $ 228,490,300
The following is a summary of debt issued during the fiscal year September 30, 2018:
$59,310,000 Special Obligation Non -Ad Valorem Bonds Series 2017 - On November 28, 2017, the
City issued $59,310,000 in Non -Ad Valorem Bond, Series 2017 and the cost of issuance thereof. The
proceeds from the Series 2017 Bond were used to refund a portion of the City's outstanding Special
Obligation Non -Ad Valorem Revenue Refunding Bonds Series 2011A and pay cost of issuances. The
refunding resulted in an aggregate difference in debt service payments of $8.86 million and an economic
gain of $6.3 million.
$16,555,000 Taxable Special Obligation Parking Revenue Refunding Note Series 2018 - On March
22, 2018, the City issued $16,555,000 in Taxable Special Obligation Revenue Refunding Note, Series
2018 and the cost of issuance thereof. The proceeds from the Series 2017 Note were used to refund a
portion of the City of Miami Special Obligation Taxable Parking Revenue Bonds, Series 2010B. The
refunding resulted in an aggregate difference in debt service payments of $1.8 million and an economic
gain of $1.4 million.
$7,180,000 Special Obligation Non -Ad Valorem Revenue Refunding Bonds Taxable Pension Series
2017 - On December 5, 2017, the City issued $7,180,000 Special Obligation Non -Ad Valorem Revenue
Refunding Bonds, Taxable Pension Series 2017 for the purpose to advance refund a portion of the Special
Obligation Non -Ad Valorem Revenue Refunding Bonds Taxable Pension Series 2009 and related closing
costs. The refunding resulted in an aggregate difference in debt service payments of $0.96 million and an
economic gain of $0.85 million.
98
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
$11,270,011 Vehicle Replacement Program - On July 27, 2018, The City obtained a $11,270,011 Lease
from Santander Bank, N.A. under a Master Lease Purchase Agreement. The lease was issued with an
interest rate of 3.1032% and a maturity date of January 1, 2023. The purpose of the lease is to purchase
police and fleet vehicles and to pay financing costs. At the end of the lease, the City will own the vehicles
outright; the City is not pledging any revenue as security for the lease. The vehicles themselves will
collateralize the lease.
$373,938 Dell Financial Services Equipment Lease - On June 1, 2018, The City obtained a $373,938
Lease from Dell Financial Services LLC under a Master Lease Purchase Agreement. The lease was issued
with an interest rate of 4.8810% and a maturity date of June 1, 2022. The purpose of the lease is to
purchase technology equipment and to pay fmancing costs. At the end of the lease, the City will own the
technology equipment; the City is not pledging any revenue as security for the lease. The vehicles
themselves will collateralize the lease.
$15,000,000 OMNI Tax Increment Revenue Note, Taxable Series 2018B - On July 13, 2018, OMNI
Community Redevelopment Agency Issued $15,000,000 OMNI Tax Increment Revenue Note, Taxable
Series 2018B to fmance the costs of the Agency's Redevelopment Plan and pay costs of issuing the
2018B Notes as more particularly described in the Loan Agreement. The 2018B Note will be secured by
Increment Revenues and other pledged amounts, all as more particularly described in Resolution No.
CRA-17-0034 adopted by the Board of Commissioners of the Agency on June 21, 2017.
$10,000,000 OMNI Tax Increment Revenue Note, Tax -Exempt Series 2018A— On March 6, 2018, the
OMNI Community Redevelopment Agency issued $10,000,000 OMNI Tax Increment Revenue Note,
Series 2018A to finance the costs of the Agency's Redevelopment Plan and pay costs of issuing the
2018A Notes as more particularly described in the Loan Agreement. The 2018A Note will be secured by
Increment Revenues and other pledged amounts, all as more particularly described in Resolution No.
CRA-17-0034 adopted by the Board of Commissioners of the Agency on June 21, 2017.
$12,867,726 State Revolving Loan Wagner Creek- On July 9, 2015, the City adopted resolution #15-
0304 approving a design and construction loan to the City for an amount not to exceed $22,413,800 from
the State of Florida Department of Environmental Protection Clean Water State Revolving Fund Program
for the Wagner Creek Seybold Canal Project.
Debt Authorized but Unissued
As of September 30, 2018, the City has authorized but not issued the following:
On July 9, 2015, the City adopted resolution #15-0304 approving a design and construction loan to the
City of Miami for an amount not to exceed $22,413,800 from the State of Florida Department of
Environmental Protection Clean Water State Revolving Fund Program for the Wagner Creek Seybold
Canal Project. As of September 30, 2018, the City has approximately $20,067,120 available for draw
down from the State.
On November 17, 2016, the Miami City Commission approved resolution #16-0563 for a declaration of
intent to issue tax-exempt and/or taxable special obligation bonds in the expected total maximum
principal amount of $45,000,000. This was done to reimburse the City for eligible expenses incurred with
respect to certain capital improvement projects at the Miami Marine Stadium and the associated Welcome
Center and Museum Complex.
99
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
On January 2, 2017, the Miami City Commission approved resolution #17-0020 for a declaration of intent
to issue tax-exempt and/or taxable special purpose improvement bonds in the expected total maximum
principal amount of $18,000,000. This was done to reimburse the City from the proceeds of such special
purpose improvement bonds for funds advanced by the City to pay eligible expenses incurred with
respect to certain public governmental capital improvement portions of the Miami Central Station Project
pursuant to the interlocal agency agreement among the City, the Southeast Overtown/Park West
Community Redevelopment Agency, and South Florida Regional Transportation Authority.
On November 7, 2017, a referendum election was held and the voters approved issuance of General
Obligation Bonds in an aggregate principal amount not exceeding $400,000,000 with interest payable at
or below the Maximum rate allowed by law, payable from Limited Ad -Valorem taxes levied on all
taxable property in the City, provided that the capital projects debt millage not exceed the current rate of
0.5935.
On July 26, 2018, the Miami City Commission approved resolution #18-0334 for a declaration of intent
to issue tax-exempt special obligation bonds in the expected total maximum principal amount of
$27,000,000 and to the extent permissible under the IRS Code regarding the tax-exempt Special
Obligation Bonds, use a portion of the tax-exempt Special Obligation Bond proceeds to reimburse the
City for funds advanced by the City for original expenditures incurred and to be incurred with respect to
the installation of underground of transmission lines..
Defeasance of Long -Term Debt
The City defeased certain debt involving advance refunding. The proceeds of the new bonds were placed
in an irrevocable trust to provide for all future debt services payments on the defeased bonds. At
September 30, 2018, the following outstanding bonds are considered defeased:
Type
GOB Refunding Bonds
SOB Refunding Bonds
SOB Taxable Pension
Taxable SOB Parking Bonds
Total Defeased
Date of
Series Defeasance Call Date
2009
2011A
2009
2010B
6/29/2017
11/28/2017
12/5/2017
3/22/2018
1/1/2019
2/1/2021
12/1/2019
7/1/2020
Principal
Amount
Defeased
$ 32,370,000
52,975,000
6,385,000
14,745,000
Principal
Outstanding
$ 32,370,000
52,975,000
6,385,000
14,745,000
$ 106,475,000
$ 106,475,000
100
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Capital Lease Obligations
The City has entered into three agreements as lessee for financing the acquisition of police and fleet
vehicles in the amount of $31,969,560. The lease agreement qualifies as a capital lease for accounting
purposes and, therefore, have been recorded at the present value of their future minimum lease payments
as of the inception date. At year end the cost and accumulated depreciation of assets under lease were
$32.0 million and $10.9 million respectively.
The following is a schedule showing the future minimum lease payments under capital lease by years and
the present value of the minimum lease payments as of September 30, 2018:
Year Ending September 30,
2019 $ 6,863,126
2020 6,788,736
2021 6,713,420
2022 4,480,541
2023 2,355,591
Total minimum lease payments 27,201,414
Less: amount representing interest (1,382,260)
Present value of minimum lease payments $ 25,819,154
The City has entered into an agreement as lessee for fmancing the acquisition of800 Megahertz ("MHZ")
Digital Trunked Simulcast Network System ("System") as part of the ongoing efforts to upgrade and
enhance two (2) way radio communications throughout the City, specifically for the Miami Police
Department, Fire -Rescue Department, and General Services Administration Department in the amount of
$12,100,000. The lease agreement qualifies as a capital lease for accounting purposes and, therefore, have
been recorded at the present value of their future minimum lease payments as of the inception date. At
fiscal year end, $1.6 million of assets were acquired to be prepared for its intended use; therefore, there is
no depreciation to report. Additionally, at year end there was $10.4 million of lease proceeds being held
in escrow.
The following is a schedule showing the future minimum lease payments under capital lease by years and
the present value of the minimum lease payments as of September 30, 2018:
Year Ending September 30,
2019 $ 1,861,516
2020 1,861,516
2021 1,861,516
2022 1,861,516
2023 1,861,516
2024 1,861,516
Total minimum lease payments 11,169,096
Less: amount representing interest (712,845)
Present value of minimum lease payments $ 10,456,251
The City has entered into an agreement as lessee for financing the acquisition of Technology Equipment
as part of the ongoing efforts to upgrade and enhance backup data servers for the City. The lease
101
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
agreement qualifies as a capital lease for accounting purposes and, therefore, have been recorded at the
present value of their future minimum lease payments as of the inception date. At year end the cost and
accumulated depreciation of assets under lease were $373,938 and $24,929 respectively.
The following is a schedule showing the future minimum lease payments under capital lease by years and
the present value of the minimum lease payments as of September 30, 2018:
Year Ending September 30,
2019 $ 82,080
2020 82,080
2021 82,080
2022 82,080
Total minimum lease payments 328,320
Less: amount representing interest (36,462)
Present value of minimum lease payments $ 291,858
Synopsis of Bond Covenants
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 percent of the assessed non-
exempt property value. At September 30, 2018, the statutory debt limitation of assessed non-exempt
property value for the City amounted to $7.7 billion providing a debt margin of $7.5 billion after
consideration of $154.3 million of general obligation bonds outstanding at September 30, 2018 and
adjusted for the fund balance of $9.4 million in the related Debt Service Fund.
Special Obligation debt of the City for which no revenue is pledged is collateralized by covenants to
budget and appropriate non -ad -valorem revenues, and tax increment revenue in accordance with their
bond indentures. The bond indentures require that sufficient funds be available in the sinking fund to
meet the annual debt service requirements. At September 30, 2018, the City had approximately $32.1
million available in the sinking fund to meet this requirement. Principal and interest to be paid in
subsequent years totals $336.5 million on all other Special Obligation debt of the City.
Pledged Revenue
The City pledged future revenue proceeds of (i) 80 percent Transportation Taxes, (ii) 100 percent new
Local Option Gas Taxes, and (iii) 20 percent of the City's Parking Surcharge to repay $80 million in
Special Obligation Revenue Bonds, Series 2007 and $65 million Special Obligation Revenue Bonds,
Series 2009. The proceeds from the bonds were used for the improvement of streets, sidewalks and
drainage within the City. Those bonds are payable solely from the pledged revenues listed above through
January 1, 2039. Principal and interest paid for the current year were $3.2 million and $6.3 million
respectively. The current year pledged revenues were (i) $14.2 million (ii) $7.3 million and (iii) $4.4
million respectively. Principal and interest to be paid in subsequent years totals $99.2 million on the
Series 2007 bonds and $100.3 million on the Series 2009 bonds.
The City further pledged future revenue proceeds of (i) 100 percent Convention Development Taxes and
(ii) Parking Revenues in connection with MLB Home Games at the Miami Marlins Baseball Stadium,
along with related parking surcharge revenues to repay $84.5 million Tax -Exempt Special Obligation
Parking Revenue Bonds, Series 2010A, $0.9 million Taxable Special Obligation Parking Revenue Bonds,
102
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Series 2010B, and $16.6 Special Obligation Parking Refunding, Series 2018. The proceeds from the
bonds were used for the construction of the parking facilities for the Miami Marlins Baseball Stadium.
The bonds are payable solely from the pledged revenues listed above through July 1, 2039. Debt service
payments began on January 1, 2012. Principal and interest to be paid in subsequent years totals $155
million on the Series 2010A bonds, $1 million on the Series 2010B bonds, and $20.3 million on the
Series 2018 bonds. Principal payments commenced in fiscal year 2016. The total pledge revenue
collected during the year was approximately $9.2 million and total principal and interest payments during
the year were $ 0.42 million and $5.2 million.
Escrow Agreement
On March 22, 2018, the City certified that the obligations under the said agreement have been satisfied.
The escrow accounts have been closed.
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.
Conduit Debt Obligations
On July 1, 1989, the City issued $30 million in Rental Revenue Bonds Series 1988 to fmance a portion of
the costs of acquiring real estate and constructing thereon an office building to be leased from the City by
the General Service Administration, an agency of the United States of America (the Government),
pursuant to a Lease Agreement between the City and the Government. The bond was issued with an
interest rate of 8.650%, to mature on July 1, 2019. The bond is payable solely from and secured by a
pledge of rentals to be received from the lease agreement between the City and the Government. Lease
Annual Rent payments are made directly by the General Services Administration as an agency of the
United States to the Bond Trustee and Paying Agent. Annual Rental has been calculated to provide
sufficient funds to pay, when due, principal of and interest on the Bond. The Bond is not a general debt,
liability or obligation of the City or a pledge of the faith and credit of the City, but will be payable solely
from the Pledged Revenues. The obligation of the United States Government acting through General
Service Administration is stated in the Official Statement for the bonds to make payments of Annual Rent
under the Lease is an absolute and unconditional general obligation of the United States, for which the
full faith and credit of the United States are pledged. Accordingly, the bond is not reported as liabilities in
the accompanying fmancial statements.
At September 30, 2018, the amount of conduit debt outstanding related to the Rental Revenue Bond
totaled $2.95 million.
Debt Issue Beginning Balance Principal Payment Outstanding Balance
Series 1988 $ 5,665,000 S 2,715,000 $ 2,950,000
103
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
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 HFA is fiscally dependent and the City is discretely presenting the HFA in the
accompanying fmancial statements. Proceeds from these bond issues were used to finance construction of
buildings and parking facilities; land acquisitions; equipment purchases including beds and other medical
apparatus; renovation of existing facilities; and engineering costs. 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 HFA does not issue stand-alone audited financial statements.
At September 30, 2018, the City of Miami Health Facilities Authority conduit debt activity and
outstanding balance totaled $42.8 million.
Debt Issue Beginning Balance
Series 2017
$ 43,650,000
Principal Payment Outstanding Balance
$ 895,000 $ 42,755,000
The scheduled debt service payments were made by Miami Jewish Home and the payments are current.
Discretely Presented Component Units Long -Term Debt
Department of Off -Street Parking (DOSP)
The changes in DOSP's long-term debt for 2018 are as follows:
Bonds Payable
Premium (discount)
Compensated absences
Other post -employment
benefit liability (OPEB)
Loan from
primary government
Restated
Beginning
Balance
$ 65,090
(653)
752
526
1,200
$ 66,915
Additions
29
539
Reductions
$ 1,585
475
17
Ending
Balance
$ 63,505
(624)
816
509
Due Within
One Year
$ 1,670
475
150 1,050 150
$ 568 $ 2,2227
$ 65.256 $ 2.295
• The beginning OMB balance was restated at October 1, 2017 for the implementation for GASH Statement 75. See Note 1.
On September 24, 2009, the City Commission adopted ordinance 13092 authorizing DOSP to issue up to
$70.0 million in revenue bonds for the purpose of refunding the then outstanding Series 2008 bonds. On
November 5, 2009, DOSP issued $60.1 million of tax-exempt, fixed-rate revenue refunding bonds and
$6.5 million in taxable, fixed-rate revenue refunding bonds (collectively, the Series 2009 Revenue
Bonds). The proceeds of these bonds were used to: (1) fully redeem and refund the then outstanding
Series 2008 bonds, (2) pay for costs of issuance on the Series 2009 revenue bonds, (3) pay for additional
construction costs on the Courthouse Center Garage, and (4) pay fees to terminate the existing interest
rate swap agreement in connection with the Series 2008 bonds. DOSP refunded the Series 2008 variable
104
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
rate debt with Series 2009 fixed rate debt. The Series 2009 Revenue Bonds are secured by the net
revenues of the parking facilities and, accordingly, are included in the accounts of DOSP.
On July 21, 2005, DOSP entered into a loan agreement with the City of Miami. The loan was obtained
through CDBG program in the amount of $3 million to be used for the construction of a parking garage
facility. The loan bears no interest and is payable in 40 semi-annual installments of $75,000 which started
December 1, 2005. The outstanding balance as of September 30, 2018 is $1.1 million.
The following summarizes the debt service to maturity of outstanding DOSP debt at September 30, 2018:
Year Ending Bonds Loan
September 30, Principal Interest Total Principal
2019 $ 1,670,000 $ 3,063,784 $ 4,733,784 $ 150,000
2020 1,760,000 2,964,679 4,724,679 150,000
2021 1,860,000 2,883,304 4,743,304 150,000
2022 1,940,000 2,796,004 4,736,004 150,000
2023 2,030,000 2,704,654 4,734,654 150,000
2024-2028 11,645,000 11,927,982 23,572,982 300,000
2029-2033 14,770,000 8,612,850 23,382,850
2034-2038 18,880,000 4,293,919 23,173,919
2039-2043 8,950,000 237,265 9,187,265
Total $ 63,505,000 $ 39,484,441 $ 102,989,441. $ 1,050,000
Range of Rates 4.25%-5.66%
NOTE 9. — RISK MANAGEMENT SELF-INSURANCE AND OTHER LIABILITIES
Section 768.28, Florida Statute, provides for waiver of sovereign immunity in tort actions or claims
against the state and its agencies and subdivisions. The present statutory limit of recovery in the absence
of special relief granted by the Florida legislature is $200,000 per person and $300,000 per incident.
Under the protection of this sovereign immunity limit, Florida Statutes 768.28 and Chapter 440, Florida
Statutes covering Workers' Compensation, the City has established a self -insured program to provide
coverage for almost all areas of liability including workers' compensation, general liability, automotive
liability, police professional liability, public officials' liability, and employment practices liability. The
City also purchases excess insurance coverage to limit catastrophic losses associated with its liability
exposures. The excess liability insurance program provides for $10 million in total limits for GL and AL
lines. In addition, the program provides for excess auto physical damage coverage with a $1 million
primary limit and $4 million excess subject to $100,000 retention, along with a $250,000 workers'
compensation coverage buffer. The excess insurance program currently has a self -insured retention of
$750,000 per occurrence for workers' compensation, and $500,000 for all other liability coverage. In
addition, the City has in place standalone polices providing coverage for Law Enforcement Liability and
Public Officials Liability with a $5 million limit per line of coverage subject to a $500,000 retention. The
City also purchases dedicated commercial general liability policies for the Grapeland Waterpark,
Bayfront Park, and the various marinas that it operates. These policies typically carry a $1 million limit
per occurrence on an aggregate basis.
105
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The City's master property insurance program provides for a total of $150 million in insurance limits. The
City's total insured value on covered property is $511 million. Included in this amount is $40 million for
named windstorm and flood coverage. With the exception of earthquake, flood and named windstorm, the
all -other -perils deductible is $50,000 per occurrence. In regard to the named windstorm, flood, and
earthquake exposures, the deductible is 5 percent of the value of the affected location subject to a
minimum of $250,000 for any one occurrence, and $7.5 million aggregate loss.
The City also maintains separate property insurance programs for the James L. Knight Center and the
Marlins Stadium parking garages. The James L. Knight Center property program provides $46.4 million
in limits for all perils including windstorm and flood. The James L. Knight Center property program has a
$50,000 all other perils deductible, and a deductible of 3 percent of total insured values at time of loss,
with a $1 million minimum for named windstorm and flood perils. The Marlins Stadium parking garage
program provides for $25 million in total limits for windstorm and flood, and for $81.2 million for all
other perils. The Marlins Stadium parking garage program has a $25,000 all other perils deductible, and a
deductible of 5 percent of total insured values at time of loss, with a $100,000 minimum per location for
named windstorm and flood perils.
The payment of losses within the self -insured retention level are made from the General Fund. Claims are
adjusted by a third party administrator. 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. The budgeting
process utilizes information developed in the previous year's actuarial report.
The City provides group health plan for its active employees, retirees, and their dependents through a
fully self -funded health insurance program. The City is currently contributing approximately 87 percent,
while the employees are contributing 13 percent of the calculated health insurance premium. The City is
currently contributing approximately 8 percent of the calculated health insurance premium cost for non -
Medicare eligible retirees and approximately 38 percent for Medicare eligible retirees. The City is
currently purchasing specific stop loss coverage for claims in excess of $250,000.
At September 30, 2018, the total estimated undiscounted liability is recorded in the government -wide
financial statements. Changes in the claims and other litigation related liability amounts for 2017 and
2018 were as follows:
Fiscal Year
Ended
September 30,
2018
2017
Beginning of
Fiscal Year
Liability
$ 209,426,429
209,618,213
Current Year
Claims and Changes
in estimates
$ 160,812,867
84,573,859
Claim
Payments
$ (88,872,723)
(84,765,643)
Balance at
Fiscal Year End
$ 281,366,573
209,426,429
106
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
NOTE 10. — PENSIONS
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
(`SORT"). Thereafter the "Plans."
Basis of Accounting. The fmancial statements for the Plans are prepared using the accrual basis of
accounting. All Plans are reported as pension trust funds in the City's fmancial statements. Plan member
contributions are recognized in the period in 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 value, which is the
price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The Plans categorizes its fair value measurements
within the fair value hierarchy established by GASB 72. The hierarchy is based on the valuation inputs
to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical
assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable
inputs. In addition, certain investments of the Pension Trust Funds are measured at the net asset value (
"NAV") per share (or its equivalent).
FIREFIGHTERS' AND POLICE OFFICERS' RETIREMENT TRUST (FIPO)
The audited fmancial statements for the plan can be obtained from the FIPO Trust Fund, 1895 SW 3`d
Avenue, Miami Florida, 33129.
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 fire
fighters with full-time employment status in the Police or Fire Department of the City.
As of October 1, 2017, the date of the most recent actuarial report valuation, membership in the FIPO
consisted of the following:
Retirees and beneficiaries currently receiving benefits and terminated members Members
entitled to benefits but not yet receiving benefits 2,204
Current members 1.943
Total 4,147
Pension Benefits
Members may elect to retire after 10 or more years of creditable service upon attainment of normal
retirement age. Normal retirement pursuant to Section 40-203 of the City of Miami code shall be
determined as follows:
Plan A - For members employed on September 30, 2010, who as of that date have attained age 50 with
ten or more years of creditable service or eligibility for rule of 64 retirement for police officer members,
or eligibility for rule of 68 for firefighter members, the normal retirement age shall be 50 years of age
107
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
with ten or more years of creditable service, or rule of 64 retirement for police officer members, or rule
of 68 for firefighter members.
Plan B - For members employed on September 30, 2010, who as of that date have not attained age 50
with ten or more years of creditable service, or mle of 64 retirement for police officer members, or rule
of 68 retirement for firefighter members, and member hired on or after October 1, 2010 shall have to
meet the be rule of 70 for retirement with a minimum age of 50 and ten or more years of creditable
service.
Rule of 64, 68 and 70 is a computation consisting of the sum of a member's age and length of creditable
service, which sum shall permit normal service retirement upon the member's combined age and
creditable service equaling at least 64, 68 and 70, respectively.
A member entitled to a normal retirement benefit shall receive a retirement allowance equal to 3 percent
of the member's average fmal compensation (as defined in City Code section 40-191), multiplied by
years of creditable service for the first 15 years of such creditable service, plus a retirement allowance
equal to 3 percent (3 %2 percent for members who retired prior to October 1, 2010) of member's average
fmal compensation multiplied by the years of creditable service in excess of 15 years, paid in monthly
installments.
The maximum benefit for members who retire after September 30, 2010 is 100 percent of average fmal
compensation or $100,000 per year, whichever is less, as of retirement or DROP entry date. Early
retirement, disability, death and other benefits are also provided
Cost of Living Adjustment
Effective January 9, 1994, the FIPO Trust entered into an agreement with the City with regards to the
funding methods, employee benefits, employee contributions and retiree cost of living adjustment (
"COLA"). Pursuant to the agreement, members no longer contribute to the original COLA account (
"COLA I") and a new COLA account ("COLA II") was established. The agreement included the
following: (a) the funding method was changed to an aggregate cost method; (b) all accounts were
combined for investment purposes (membership and benefits, COLA I, and COLA II); (c) retirees
receive additional COLA benefits; and (d) active members no longer contribute 2 percent of pretax
earnings to fund the original retiree COLA I account.
The COLA II account is funded annually by a percentage of the excess investment return from the
COLA I account assets. The excess earnings contributed to the COLA II account are used to fund a
minimum annual payment of $2.5 million, increasing by 4 percent 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. For the year ended September 30, 2018,
approximately $6.4 million was funded by the City. 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.
Deferred Retirement Option Plan (DROP)
Members who are eligible for service retirement or Rule of 64 Retirement after September 1998 may
elect to enter the deferred retirement option plan (the "DROP"). Upon election of participation, a
member's creditable service, accrued benefits, and compensation calculation are frozen and the DROP
payment is based on the member's average final compensation. The member's contribution and the City
contribution to the retirement plan for that member ceases as no further service credit is earned. The
member does not acquire additional pension credit for the purposes of the pension plan, but may
108
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
continue City employment 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.
Effective July 24, 2008, firefighter DROP participants may continue City employment for up to 54 full
months (48 full months prior to July 24, 2008 and 36 full months prior to October 1, 2001). Police
officers who elect the DROP on or after May 8, 2008, may continue City employment for up to 84 full
months (48 full months prior to May 8, 2008 and 36 full months prior to October 1, 2003). Once the
maximum participation has been achieved, the participant must terminate employment.
The DROP of the FIPO Trust also consists of a Benefit Actuarially Calculated DROP ("BACDROP").
The BACDROP is a DROP benefit actuarially calculated. A member may elect to BACDROP to a date,
no further back than the date of the member's requirement eligibility date. The BACDROP period must
be in 12 month 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 BACDROP on
October 1, 2003 (36 months prior to October 1, 2003). The benefits of the BACDROP will then be
actuarially calculated to be the equivalent to the benefit earned at the date of retirement.
An individual account is created for each participant. A series of investment vehicles, as established by
FIPO's Board of Trustees, are made available to DROP participants to choose from. Any losses incurred
on account of the option selected by the participant will not be made up by the City or the FIPO Trust,
and will be borne by the participant only. All interest will be credited to the member's account. Upon
termination of employment, a participant may receive payment from the DROP account in a lump sum
distribution; or periodic payments. A participant may elect to rollover the balance to another qualified
retirement plan, individual retirement account, an Internal Revenue Code Section 457 Plan, or an
annuity. A participant may defer payment until the latest date authorized by Section 401(a) (9) of the
Internal Revenue Code. DROP participation will not affect any other death or disability benefit provided
under law or applicable collective bargaining agreement. If a participant dies before the account
balances are paid out in full, the beneficiary will receive the remaining balance.
Participants in the DROP 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.
Participation in the DROP does not affect any other death or disability benefit provided to a member
under federal law, state law, City ordinance, or any rights or benefits under any applicable collective
bargaining agreement. The DROP balance for the year ended September 30, 2018 amounted to $154.4
million.
Contributions and Funding Policies
Police officer members of FIPO are required to contribute 10 percent of their salary on a bi-weekly basis
(7 percent prior to October 1, 2012). Firefighter members are also required to contribute 10 percent (9
percent prior to October 1, 2009) 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 FIPO and to provide FIPO
with assets sufficient to meet the benefits to be paid to participants. Contributions to FIPO are authorized
pursuant to Sections 40.196(a) and (b) of the City Code. Contributions to the FIPO COLA accounts are
authorized pursuant to Section 40.204 of the City 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
FIPO Trust.
109
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The payroll for employees covered by FIPO for the year ended September 30, 2018 was approximately
$141.5 million. The City is required to contribute the difference between the actuarially determined rate
and the contribution rate of employees. For the year ended September 30, 2018, the average active
employee contribution rate was 10 percent of annual pay, and the City's average contribution rate was 40
percent of annual payroll.
Summary of Significant Accounting Policies
For the purposes of measuring the net pension liability and deferred outflows/inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of FIPO and
additions to/deductions from the Plan fiduciary net position have been determined on the same basis as
they are reported by FIPO. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the Pension Plan.
Net Pension Liability
The components of the net pension liability for FIPO at September 30, 2018, are as follows:
FIPO
Total pension liability
Plan fiduciary net position
Net pension liability
Actuarial Assumptions
$ 2,120,924,585
(1,566,682,376)
$ 554,242,209
The total pension liability was based on an October 1, 2017 actuarial valuation rolled forward to the
measurement date of September 30, 2018, using the following assumptions, applied to all periods in the
measurement:
Actuarial Assumptions
Measurement Date
Inflation
Actuarial cost method
Projected salary increases
Cost -of -living adjustments
Assumed rate of return
on investments
September 30, 2018
3.25%
Entry age cost method
3.25%-9.75%, average, including inflation
Amount varies annually with the adjustment on January 1st
7.34% compounded annually, net of pension plan
investment expense including inflation.
Mortality rates are calculated with the Florida Retirement System special risk mortality projected scale
BB generationally for all healthy retirees. Disabled Mortality rates are calculated based on Florida
Retirement System (no projection scale).
The actuarial assumptions used in the October 1, 2017 valuations was based on the results of an actuarial
experience study for the period October 1, 2014 to September 30, 2017.
110
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The long-term expected rate of return on pension plan investments was determined in accordance with
Actuarial Standard of Practice (ASOP) No.27, Selection of Economic Assumptions for measuring
Pension Obligation. ASOP No.27 provides guidance on the selection of an appropriate assumed
investment rate of return. Consideration was given to expected future real rates of return (expected
returns, net of pension Plan investment expense and inflation) for each major asset class as well as
historical investment data and Plan performance.
Best estimates of real rates of return for each major asset class included in the pensions Plan's target
asset allocation as of September 30, 2018 are summarized in the following table:
Asset Class
Domestic Fixed Income
Domestic Equity
International Equity
Real Estate
Private Equity
Long -Term Expected
Real Rate of Return
2.99%
7.08%
6.35%
5.57%
6.65%
Real rates of return are net of the long-term inflation assumption of 3.25% for 2018
Discount Rate
The discount rate used to measure the total pension liability was 7.34 percent. The projection of cash
flows used to determine the discount rate assumed that Plan member contributions will be made at the
current contribution rates and that contributions from the City will be made at statutorily required rates,
actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be
available to make all projected future benefit payments of current Plan members. Therefore, the long-
term expected rate of return on pension Plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
Changes in Benefit Terms
In the prior year there was a full restoration of benefits due to the Supreme Court Ruling in favor of
FIPO, which increased both the total pension liability and pension expense by $122.6 million. In fiscal
year 2018, the City and FIPO entered into settlement agreements which resulted in the benefits not being
restored and canceled as of fiscal year end September 30, 2018. The change in benefits resulted in a
reduction of the total pension liability and pension expense of $122.6 million for the fiscal year ended
September 30, 2018 (see Note 12). The change in benefits resulted in a reduction of the total pension
liability and pension expense of $122.6 million for the fiscal year ended September 30, 2018.
111
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Changes in Net Pension Liability
The following table shows the FIPO changes in net pension liability based on the actuarial information
provided to the City at September 30, 2018:
Balance at 10/01/2017, as restated*
Changes for the year:
Service Cost 27,965,925
Interest 149,244,425
Changes of benefit terms (122,641,436)
Differences between expected and
actual experience 21,728,074
Changes of assumptions 16,618,357
Contributions - employer -
Contributions - member
Net investment income -
Benefit payments, including refunds of
member contributions (156,093,286)
Administrative expenses and other Net Changes (63,177,941)
Balances at 09/30/2018
FIPO
Increase (Decrease)
Total Pension
Liability
(a)
$ 2,184,102,526
Plan Fiduciary Net
Position
(b)
$ 1,551,350,461
56,999,866
14,258,763
102,296,006
(156,093,286)
(2,129,434)
15,331,915
$ 2,120,924,585 $ 1,566,682,376
*Balances were restated as of September 30, 2017, See Note 15.
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
Net Pension
Liability
(a) - (b)
$ 632,752,065
27,965,925
149,244,425
(122,641,436)
21,728,074
16,618,357
(56,999,866)
(14,258,763)
(102,296,006)
2,129,434
78,509,856
554,242,209
The following table illustrates the impact of interest rate sensitivity on the FIPO net pension liability as
of September 30, 2018:
1% Decrease
(6.34%)
Net Pension Liability $ 782,938,042
Current Discount
Rate
(7.34%)
$ 554,242,209
1% Increase
(8.34%)
$ 361,854,373
112
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pension
For the year ended September 30, 2018, the City recognized pension expense of $ 47.3 million. At
September 30, 2018 the City reported deferred outflows of resources and deferred inflows of resources
from the following sources:
Differences between expected and actual
experience
Changes of assumptions
Net difference between projected and actual
earnings on pension plan investments
Total
FIPO
Deferred Outflow of Deferred Inflows of
Resources Resources
37,433,456 $
36,724,762
22,893,853
558,888
22,721,737
97,052,071 $
23,280,625
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions
will be recognized in pension expense as follows:
Year ended September 30:
2019 $25,324,672
2020 $10,136,529
2021 $10,868,462
2022 $16,485,662
2023 $5,478,062
Thereafter $5,478,059
GENERAL EMPLOYEES' AND SANITATION EMPLOYEESRET/RF.MF_NT TRUST (GESE Trust)
The Board of Trustees of the GESE Trust administers four defined benefit pension plans: (a) GESE; (b)
an Excess Benefit Plan for the City of Miami (the "EBP"); (c) General Employees and Sanitation
Employees Retirement Trust Staff Pension Plan (the "Staff Trust"), and (d) General Employees and
Sanitation Employees Retirement Trust Staff Excess Benefit Plan (the "Staff Excess Benefit Plan").
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.
The audited financial statements for the GESE Plans can be obtained from the pension board at: GESE
Trust, 2901 Bridgeport Avenue, Coconut Grove, Florida 33133.
113
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
GESE Trust
Plan Description
The GESE Trust is a single -employer defined benefit plan. The GESE Trust was established pursuant to
the City Ordinance No. 10002 and subsequently revised under City Ordinance No. 12111. The GESE
Trust covers all City 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 executive level employees hired after
October 1, 2009.
As of October 1, 2017, the date of the most recent actuarial valuation report, membership in the GESE
consisted of the following:
Members
Retirees and beneficiaries currently receiving benefits 1,979
Terminated members entitled to benefits but not yet receiving benefits 236
Current members 1.943
Total 4,158
Pension Benefits
The minimum normal retirement age is 55. Any member in service who has 10 or more years of
continuous creditable service may elect to retire upon attainment of normal retirement age. A member
who has completed a combination of at least 10 or more years of creditable service plus attained an age
equaling 70 points may elect a Rule of 70 Retirement. Subsequent to September 30, 2010 for members
not eligible to retire as of that date, the retirement age and service changed to age 55 and 30 years of
creditable service or age 60 and 10 years of continuous creditable service or a combination of at least ten
years of creditable service plus attained age equaling 80 points (Rule of 80).
Retirement benefits are generally based on 3 percent of the average final compensation multiplied by
years of creditable service, which is paid annually in monthly installments. For service after September
30, 2010, for members not eligible to retire as of that date, benefits are based on 2.25 percent of average
final compensation multiplied by creditable service up to 15 years, 2.5 percent of average final
compensation for 15 to 20 years of service and 2.75 percent for service over 20 years. Effective
September 30, 2012, for members not eligible to retire on that date, member retirement allowances shall
not exceed $80,000. Any member who has accrued a benefit in excess of the maximum benefit as of
September 30, 2012 will retain that benefit but will not accrue any additional benefit.
Members eligible to receive accumulated sick and vacation leave from the City are able to transfer the
amount to an eligible retirement plan. The GESE Trust facilitates the transfer of accumulated sick and
vacation leave to any eligible retirement plan and is pursuant to Section 40-266 of the City Code.
Cost of Living Adjustment (COLA)
Effective October 1, 1998, the GESE Trust was amended to provide for an increase in the COLA paid to
retirees to 4 percent 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 their
contribution option to receive a minimum COLA benefit of $27 per year and a maximum COLA benefit
114
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
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 DROP is available to GESE Trust members for normal retirement as of January 1, 2013 or vested as
of October 1, 2010. The DROP is not available to any other GESE Trust member. The DROP is an
enhancement to the GESE Trust that can provide a member with another way to save for retirement. It
allows a participant to receive pension payments by depositing in the DROP program while continuing
to work and receive pay and benefits as an active employee. At the end of the DROP period, when the
participant is officially required to retire, the participant receives monthly pension payments based on the
years of service and salary at the time that the participant enrolled in the DROP. The participant may
elect to receive the accumulated DROP account balance or can be rolled over into a separate tax -
qualified plan after withdrawing from the DROP. DROP pension payment for the year ended September
30, 2018 amounted to $1.1 million. The DROP balance for the year ended September 30, 2018 amounted
to $35.5 million.
BACKDROP Option (BACKDROP)
The Backdrop is available to all GESE Trust members effective January 1, 2013. Under the
BACKDROP option a member can receive a lump sum payment in addition to a monthly pension
annuity. The employee chooses to take a BACKDROP at the end of his or her employment with the
City as long as he or she BACKDROPs to any date after he or she reaches the Normal Retirement date.
If the member elects the BACKDROP option, the monthly benefit payable on the member's actual
retirement date (when the member leaves City employment) is based on the benefit the member would
have received had he or she left employment and retired on an earlier Normal Retirement date, referred
to as the BACKDROP date. In addition, the member will receive a lump sum payment equal to the
accumulation of annuity payments he or she would have received during the Backdrop period had he or
she elected to receive immediate pension annuity payments equal to the accumulation of annuity
payments he or she would have received during the BACKDROP period had he or she elected to receive
immediate pension annuity payments starting as of the BACKDROP date. Annuity payments would be
accumulated at the rate of 3 percent per year, compounded annually. The member's BACKDROP date
can be any date after his or her Normal Retirement Date and the BACKDROP period can be any date
after his or her Normal Retirement Date and the BACKDROP period can be as little as one year and as
long as seven years. If the member does not elect a BACKDROP benefit option, his or her monthly
retirement benefit will be calculated using his or her final average final compensation and creditable
service as of the member's actual employment termination date. The participant may receive the
accumulated BACKDROP account balance upon electing the BACKDROP and at the end of his or her
employment. The BACKDROP monies can be rolled over into a separate tax -qualified plan after
withdrawing from the DROP. BACKDROP pension payment for the year ended September 30, 2018
amounted to $70,430.
Contributions and Funding Policies
Members of the GESE are required to contribute 10 percent of their salary on a bi-weekly basis. The
GESE's 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 GESE
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 are authorized pursuant to Sections 40-
115
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
246(a) and (b) of the City Code. Contributions from the City are designed to fund the GESE'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 investment of the GESE serves
to reduce or increase future contributions that would otherwise be required to provide for the defined
level of benefits under the GESE Plan.
The payroll for employees covered by the GESE Trust for the year ended September 30, 2018 was
approximately $97.4 million. The City is required to contribute the difference between the actuarially
determined rate and the contribution rate of employees. For the year ended September 30, 2018, the
average active employee contribution rate was 11.4 percent of annual pay, and the City's average
contribution rate was 35.3 percent of annual payroll.
Summary of Significant Accounting Policies
For the purposes of measuring the net pension liability and deferred outflows/inflows of resources
related to pensions, and pension expense, information about the fiduciary net position ofGESE Trust and
additions to/deductions from the GESE Trust fiduciary net position have been determined on the same
basis as they are reported by GESE Trust. For this purpose, benefit payments (including refunds of
employee contributions) are recognized when due and payable in accordance with the Pension Plan.
Net Pension Liability
The components of the net pension liability of the GESE Trust at September 30, 2018, are as follows:
GESE Trust
Total pension liability $ 960,959,524
Plan fiduciary net position (667,854,473)
Net pension liability $ 293,105,051
Actuarial Assumptions
The total pension liability was based on an October 1, 2016 actuarial valuation rolled forward to the
measurement date of September 30, 2017, using the following assumptions, applied to all periods in the
measurement:
Actuarial Assumptions
Measurement Date
Inflation
Projected salary increases
Assumed rate of return on
investments
September 30, 2017
3.5%
4% - 8.75%, including inflation
7.6% per year, net of pension plan investment expense and including
inflation
The rates of mortality are according to the following tables:
Pre -Retirement Mortality
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CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Female: RP2000 Generational, 100% Combined Healthy White Collar, Scale BB
Male: RP2000 Generational, 50% Combined Healthy White Collar / 50% Combined Healthy Blue
Collar, Scale BB
Post -Retirement Healthy Mortality
Female: RP2000 Generational, 100% Annuitant White Collar, Scale BB
Male: RP2000 Generational, 50% Annuitant White Collar / 50% Annuitant Blue Collar, Scale BB
Post -Retirement Disabled Mortality
Female: RP2000, 100% Disabled Female set forward two years, no projection scale
Male: RP2000, 100% Disabled Male, set back four years, no projection
Long Term Rate of Return
The long term expected rate of return on pension plan investments was determined using a long -normal
distribution analysis in which best -estimate ranges of expected future real rates of return (expected
returns, net of retirement Plan investment expense and inflation) are developed for each major asset
class. These ranges are combined to produce the long-term expected rate of return by weighting the
expected future real rates of return by the target asset allocation percentage and by adding expected
inflation. Best estimates of real rates of return for each major asset class included in the pensions Plan's
target asset allocation as of September 30, 2018 are summarized in the following table:
Asset Class
U.S. Large Cap Equity
U.S. Small Cap Equity
International Equity
Real. Estate
Cash and Other
Core Bonds
Discount Rate
Long -Term Expected
Real Rate of Return
4.90%
5.75%
5.25%
5.50%
2.10%
1.50%
The discount rate used to measure the total pension liability was 7.6 percent. The projection of cash
flows used to determine the discount rate assumed that Plan member contributions will be made at the
current contribution rates and that contributions from the City will be made at statutorily required rates,
actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be
available to make all projected future benefit payments of current plan members. Therefore, the long-
term expected rate of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
117
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Changes in Net Pension Liability
The following table shows the GESE Trust changes in net pension liability based on the
information provided to the City at September 30, 2018:
Balance at 10/01/2017
Changes for the year:
Service Cost
Interest
Differences between expected and actual
experience
Changes of assumptions
Contributions - employer
Contributions - member
Net investment income
Benefit payments, including refunds of
member contributions
Administrative expenses and other
Net Changes
Balances at 09/30/2018
Total Pension
Liability
(a)
881,795,448
12,906,853
64,220,387
10,997,320
64,620,251
GESE Trust
Increase (Decrease)
Plan Feduciary
Net Position
(b)
$ 617,704,941
34,355,719
11,081,234
78,645,544
(73,580,735) (73,580,735)
(352,230)
79,164,076 50,149,532
960,959,524 $ 667,854.473
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
actuarial
Net Pension
Liability
(a) - (b)
$ 264,090,507
12,906,853
64,220,387
10,997,320
64,620,251
(34,355,719)
(11,081,234}
(78,645,544)
352,230
29,014,544
$ 293,105,051
The following table illustrates the impact of interest rate sensitivity on the GESE Trust net pension
liability as of September 30, 2018:
1 % Decreas
(6.6%)
Current Discount
Rate 1% Increase
(7.6%) (8.06%)
Net Pension Liability $ 397,072,730 $ 293,105,051 $ 205,608,756
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CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pension
For the year ended September 30, 2018, the City recognized pension expense of $29.2 million. At
September 30, 2018 the City reported deferred inflows and outflows of resources from the following
source:
GESE Trust
Deferred Outflows of Deferred Inflows of
Resources Resources
Differences between expected and actual
experience $ 14,019,363 $ 3,125,933
Changes of assumptions 52,653,538 251,798
Net difference between projected and actual
earnings on pension plan investments - 22,833,504
Employer contribution made subsequent to
measurement date 40,879,285
Total $ 107,552,186 $ 26,211,235
There is $40.9 million reported as deferred outflows of resources related to pension resulting from City
contributions made subsequent to the measurement date. Amount will be recognized as a reduction of
the net pension liability in the year ended September 30, 2019. Other amounts reported related to
pensions will be recognized in pension expense as follows:
Year ended September 30:
2019 $8,619,797
2020 13,122,160
2021 5,671,718
2022 7,446,690
2023 5,601,301
GESE Excess Benefit Plan (EBP)
Plan Description
In July 2000, the City, 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 GESE Board of Trustees administers the excess benefit plan.
GESE members are not required to contribute to the EBP. Members of the GESE participate in this plan.
As of October 1, 2017, the date of the most recent actuarial report valuation, membership in the EBP
consisted of 36 retirees currently receiving benefits.
Contributions and Funding Policies
The payment of the City's contribution of excess retirement benefits for eligible members of GESE
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
119
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
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 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. The EBP is an unfunded plan and the City is required to
contribute as benefits become payable.
The payroll for employees covered by the EBP for the year ended September 30, 2018 was
approximately $97.4 million. The City's contribution to the plan for the year ended September 30, 2018
was $674,572 and plan benefit payments were $674,572. The City is required to contribute the
difference between the actuarially determined rate and the contribution rate of employees. For the year
ended September 30, 2018, the City's average contribution rate was 0.69% percent of annual payroll.
Summary of Significant Accounting Policies
For the purposes of measuring the net pension liability and deferred outflows/inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of GESE EBP and
additions to/deductions from the GESE EBP fiduciary net position have been determined on the same
basis as they are reported by GESE EBP. For this purpose, benefit payments (including refunds of
employee contributions) are recognized when due and payable in accordance with the Pension Plan.
Net Pension Liability
The components of the net pension liability of the GESE EBP at September 30, 2018, are as follows:
GESE EBP
Total pension liability $ 11,152,247
Plan fiduciary net position
Net pension liability $ 11,152,247
Actuarial Assumptions
The total pension liability was based on an October 1, 2016 actuarial valuation rolled forward to the
measurement date of September 30, 2017 using the following assumptions, applied to all periods in the
measurement:
Actuarial Assumptions
Measurement Date September 30, 2017
Inflation 3.50%
Projected salary increases 4% - 8.75%, including inflation
Investment rate of return Not applicable, the plan has no assets for investments
The rates of mortality are according to the following tables:
Pre -Retirement Mortality
Female: RP2000 Generational, 100% Combined Healthy White Collar, Scale BB
Male: RP2000 Generational, 50% Combined Healthy White Collar / 50% Combined Healthy Blue
Collar, Scale BB
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CITY OF MAW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Post -Retirement Healthy Mortality
Female: RP2000 Generational, 100% Annuitant White Collar, Scale BB
Male: RP2000 Generational, 50% Annuitant White Collar / 50% Annuitant Blue Collar, Scale BB
Post -Retirement Disabled Mortality
Female: RP2000, 100% Disabled Female set forward two years, no projection scale
Male: RP2000, 100% Disabled Male, set back four years, no projection
Long Term Rate of Return
The Excess Plan has no assets therefore long term rate of return is not applicable.
Discount Rate
The discount used to measure the total pension liability was 3.57 percent. Since the Excess plan has no
assets, there are no assets available to make projected future benefit payments of current plan members.
Therefore, the applicable municipal bond index rate of 3.57 percent, based on the Bond Buyer General
Obligation 20-year Municipal Bond Index published monthly by the Board of Governors of the Federal
Reserve System as of September 30, 2016 was applied to all periods of projected benefit payments. As a
result, the Single Equivalent Interest Rate (SEIR) is also 3.57 percent. The SEIR at the beginning of the
measurement period was 2.93 percent based on the applicable municipal bond index rate of 2.93 percent
as of September 30, 2017 applied to all periods of projected benefit payments. The projection of cash
flows used to determine the discount rate assumed that employer contributions will be made in
accordance with the City Ordinance and Florida Statutes.
Changes in Net Pension Liability
The following table shows the GESE EBP changes in net pension liability based on the actuarial
information provided to the City at September 30, 2018:
GESE EBP
Increase (Decrease)
Total Pension Plan Feduciary Net Net Pension
Liability Position Liability
(a) (b) (a) - (b)
Balance at 10/01/2017 $ 13,481,890 $ $ 13,481,890
Changes for the year:
Interest 385,137 - 385,137
Differences between expected and
actual experience (1,948,1 14) (1,948,114)
Changes of assumptions (92,094) (92,094)
Contributions - employer 674,572 (674,572)
Benefit payments, including
refunds of member contributions (674,572) (674,572)
Net Changes (2,329,643) (2,329,643)
Balances at 09/30/2018 $ 11,152,247 $ $ 11,152,247
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
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CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The following table illustrates the impact of interest rate sensitivity on the GESE EBP net pension
liability as of September 30, 2018:
Net Pension Liability
Current Discount
1% Decrease Rate 1 % Increase
(2.57%) (3.57%) (4.57%)
12,886,030 $ 11,152,247 $ 9,782,659
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pension
For the year ended September 30, 2018, the City recognized pension expense of $1 million. At
September 30, 2018 the City reported deferred outflows and inflow of resources from the following
source:
GESE EBP
Deferred Outflows of Deferred Inflows of
Resources Resources
Differences between expected and actual
experience $ 1,359,060 $ 1,895,523
Changes of assumptions 870,830 75,040
Employer contribution made subsequent to
measurement date 587,959
Total $ 2,817,849 $ 1,970,563
There is $587,959 reported as deferred outflows of resources related to pension resulting from City
contributions made subsequent to the measurement date. Amount will be recognized as a reduction of
the net pension liability in the year ended September 30, 2019. Other amounts reported related to
pensions will be recognized in pension expense as follows:
Year ended September 30:
2019 $582,519
2020 401,087
2021 (195,335)
2022 (377,816)
2023 (151,128)
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, pursuant to Chapter 40 of the 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.
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CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
As of October 1, 2017, the date of the most recent actuarial report valuation, membership in the Staff
Trust consisted of the following:
Members
Retirees and beneficiaries currently receiving benefits 4
Terminated members entitled to benefits but not yet receiving benefits 1
Current members 7
Total 12
Pension Benefits
The minimum normal retirement age is 55. Any member in service who has 10 or more years of
continuous creditable service may elect to retire upon attainment of normal retirement age. A member
who has completed a combination of at least 10 or more years of creditable service plus attained an age
equaling 70 points may elect a Rule of 70 Retirement. However, a member is entitled to early retirement
at any age with at least 10 years of creditable service. Retirement benefits are generally based on 3
percent of the average final compensation during the highest two years of membership service multiplied
by years of creditable service, which is paid annually in monthly installments. A retired member who
dies prior to having received 12 monthly retirement payments and prior to having an optional allowance
becoming effective will have a lump sum equal to the excess, if any, of 12 times the monthly payments
over the actual payments received paid to his designated beneficiary.
Deferred Retirement Option Plan (DROP)
The Staff Trust implemented a DROP for employees eligible for Rule of 70 Retirement on March 26,
2010. Any employee who is eligible for a Rule of 70 Retirement is eligible to participate in the DROP.
Upon election of participation, a member's creditable service, accrued benefits, and compensation
calculation are frozen and the DROP payment is based on the member's average final compensation.
The member's contribution and the City contribution to the retirement plan for that member ceases as no
further service credit is earned. The member does not acquire additional pension credit for the purposes
of the pension plan, but may continue City employment for up to a maximum of 48 months. Once the
maximum participation has been achieved, the participant must terminate employment.
Upon termination of employment, a participant may receive payment from the DROP account in a lump
sum distribution; or periodic payments. A participant may elect to rollover the balance to another
qualified retirement plan, individual retirement account, an Internal Revenue Code Section 457 Plan, or
an annuity. A participant may defer payment until the latest date authorized by Section 401(a) (9) of the
Internal Revenue Code. DROP participation will not affect any other death or disability benefit provided
under law or applicable collective bargaining agreement. If a participant dies before the account
balances are paid out in full, the beneficiary will receive the remaining balance. The DROP balance for
the year ended September 30, 2018 amounted to $970,072 thousand.
Contributions and Funding Policy
Members of the Staff Trust are required to contribute 10 percent of their salary on a bi-weekly basis.
The funding policies of the Staff Trust 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 Staff 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 member
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
123
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
increase future contributions that would otherwise be required to provide for the defined level of benefits
under the Staff Plan.
The payroll for employees covered by the Staff Trust for the year ended September 30, 2018 was
approximately $225,000. The City is required to contribute the difference between the actuarially
determined rate and the contribution rate of employees. For the year ended September 30, 2018, the
average active employee contribution rate was 9.9 percent of annual pay, and the City's average
contribution rate was 109.9 percent of annual payroll.
Summary of Significant Accounting Policies
For the purposes of measuring the net pension liability and deferred outflows/inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of GESE Staff
Trust and additions to/deductions from the GESE Staff Trust fiduciary net position have been
determined on the same basis as they are reported by GESE Staff Trust. For this purpose, benefit
payments (including refunds of employee contributions) are recognized when due and payable in
accordance with the Pension Plan.
Net Pension Liability
The components of the net pension liability of the GESE Staff Trust at September 30, 2018, are as
follows:
GESE Staff Trust
Total pension liability $ 5,019,792.
Plan fiduciary net position (3,831,837)
Net pension liability $ 1,187,955
Actuarial Assumptions
The total pension liability was based on an October 1, 2016 actuarial valuation rolled forward to the
measurement date of September 30, 2017, using the following assumptions, applied to all periods in the
measurement:
Actuarial Assumptions
Measurement Date September 30, 2017
Inflation 3.50%
Projected salary increases 6%, including inflation
Investment rate of return 7.6% per year, net of pension plan investment expense and including
inflation.
124
CITY OF NIIANII, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The rates of mortality are according to the following tables:
Pre -Retirement Mortality
Female: RP2000 Generational, 100% Combined Healthy White Collar, Scale BB Male: RP2000
Generational, 50% Combined Healthy White Collar / 50% Combined Healthy Blue Collar, Scale BB
Post -Retirement Healthy Mortality
Female: RP2000 Generational, 100% Annuitant White Collar, Scale BB
Male: RP2000 Generational, 50% Annuitant White Collar / 50% Annuitant Blue Collar, Scale BB
Post -Retirement Disabled Mortality
Female: RP2000, 100% Disabled Female set forward two years, no projection scale
Male: RP2000, 100% Disabled Male, set back four years, no projection
Long Term Rate of Return
The long term expected rate of return on pension plan investments was determined using a long -normal
distribution analysis in which best -estimate ranges of expected future real rates of return (expected
returns, net of retirement Plan investment expense and inflation) are developed for each major asset
class. These ranges are combined to produce the long-term expected rate of return by weighting the
expected future real rates of return by the target asset allocation percentage and by adding expected
inflation. Best estimates of real rates of return for each major asset class included in the pension plan's
target asset allocation as of September 30, 2018 are summarized in the following table:
Asset Class
U.S. Large Cap Equity
U.S. Small Cap Equity
International Equity
Core Bonds
Discount Rate
Long -Term Expected
Real Rate of Return
4.90%
5.75%
5.25%
1.50%
The discount rate used to measure the total pension liability was 7.6 percent. The projection of cash
flows used to determine the discount rate assumed that Plan member contributions will be made at the
current contribution rates and that contributions from the City will be made at statutorily required rates,
actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be
available to make all projected future benefit payments of current plan members. Therefore, the long-
term expected rate of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
125
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Changes in Net Pension Liability
The following table shows the GESE Staff Trust changes in net pension liability based on the actuarial
information provided to the City at September 30, 2018:
Balance at 10/01/2017
Changes for the year:
Service Cost
Interest
Changes of benefit terns
Differences between expected and
actual experience
Changes of assumptions
Contributions - employer
Contributions - member
Net investment income
Benefit payments, including refunds
of member contributions
Net Changes
Balances at 09/30/2018
GESE Staff Trust
Increase (Decrease)
Total Pension
Liability
(a)
$ 4,364,739
52,832
320,492
460,951
10,440
105,798
Plan Feduciary
Net Position
(b)
$ 3,465,231
247,449
24,542
438,774
(295,460) (295,460)
655,053
Net Pension
Liability
(a) - (b)
$ 899,508
52,832.
320,492
460,951
10,440
105,798
(247,449)
(24,542)
(438,774),
366,606 288,447
5,019,792 $ 3,831,837 $ 1,187,955
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following table illustrates the impact of interest rate sensitivity on the GESE Staff Trust Plan net
pension liability as of September 30, 2018:
Current Discount
1% Decrease Rate I% Increase
(6.6%) (7.6%) (8.6%)
Net Pension Liability $ 1,866,907 $ 1,139,256 $ 562,557
126
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pension
For the year ended September 30, 2018, the City recognized pension expense of $358,206. At September
30, 2018 the City reported deferred inflows and outflows of resources as follows:
Differences between expected and actual experience
Changes of assumptions
Net difference between projected and actual earnings on
pension plan investments
Employer contribution made subsequent to measurement date
Total
GESE Staff Trust
Deferred Deferred
Outflows of Inflows of
Resources Resources
12,055 228,681
67,878 -
43,004
122,937
138,626
367,307
There is $43,004 reported as deferred outflow of resources related to pension resulting from City's
contributions made subsequent to the measurement date. Amount will recognized as a reduction of the
net pension liability in year ended September 30, 2019. Other amounts reported as deferred outflows of
resources related to pensions will be recognized in pension expense as follows:
Year ended September 30:
2019 $ (215,209)
2020 23,701
2021 (60,606)
2022 (35,260)
GESE Staff Excess Benefit Plan
Plan Description
The original effective date is May 25, 2001. The plan was established to fund the excess, if any, of the
benefit earned under the GESE Staff Plan without taking into account the Internal Revenue Code (IRC)
Section 415 limits. Membership consists of members of the GESE Trust Staff Plan who exceed the
maximum benefit. There are no member contributions or plan assets.
Effective October 1, 2016, the plan document 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 fifth 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 twenty-seven dollars per year and a
maximum COLA benefit of two hundred dollars added to the previous COLA benefit, provided the
retiree's fifth year anniversary of retirement has been reached.
As of October 1, 2017, the date of the most recent actuarial report valuation, membership in the EBP
consisted of 1 active member.
127
CITY OF NIIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Elected Officers' Retirement Trust (EORT)
Plan Description
Prior to October 22, 2009, the City's elected officials participated in a single -employer, non-contributory
defined benefit pension plan under the administration and management of a separate Board of Trustees.
Under the EORT, eligibility requires 7 years of total service if elected between October 1, 2001 and
October 22, 2009, or 10 years of total service if elected prior to October 1, 2001 as an elected official of
the City to be vested without requiring that such service be continuous. Any official elected after
October 22, 2009 is not eligible to participate in the plan.
The City, pursuant to applicable Internal Revenue Code provisions, also 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 that the benefits for eligible members are not
diminished by changes in the Internal Revenue Code.
Separate stand-alone financial statements are not issued for EORT and are presented as part of the
Combining Statement of Fiduciary Net Position and Combining Statement of Changes in Fiduciary Net
Position located in the Fiduciary Funds section of the City's CAFR.
As of January 1, 2018, the date of the most recent actuarial valuation, membership in the EORT
consisted of the following:
Members
Retirees and beneficiaries currently receiving benefits 6
Terminated members entitled to benefits but not yet receiving benefits 2
Active officers with future range of service from 1 to 3 years 2
Total 10
Pension Benefits
Benefits accrue for elected officers at the rate of 50 percent 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 percent for
each additional year up to 100 percent at 7 or more years of service. The Plan benefit is payable
beginning on the date the participant ceases to be an elected officer, but no earlier than the participants
55th birthday. The benefit is payable monthly, for the participant's lifetime. An active participant will be
fully vested upon death and a single sum death benefit is payable. The EORT was frozen to new entrants
effective October 22, 2009. Only participants who were accruing benefits and had not yet become vested
in their benefits as of that date continue to accrue benefits under the EORT. Benefit accruals for all other
participants were frozen.
Contributions and Funding Policy
The annual contribution is determined using the Projected Unit Credit (PUC) Cost Method, which was
adopted effective with the January 1, 2012 actuarial valuation report. The PUC Cost Method separates
and develops funding components for annual contributions into 1) normal costs and 2) an amortization
payment toward the unfunded accrued liability for past service benefits. Revising the actuarial funding
method allows the City to fund the payment liability over a longer period of time. Contributions made to
EORT are in accordance with actuarially determined contribution requirements, based on the actuarial
valuation performed for each respective year.
128
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
EORT is a non-contributory defined benefit plan; therefore, all funding is provided by the City. The City
is required to contribute the actuarially determined rate. The City's contribution to the plan for the year
ended September 30, 2018 was $553,471.
For the year ended September 30, 2018, EORT had no covered payroll for employees.
Summary of Significant Accounting Policies
For the purposes of measuring the net pension liability and deferred outflows/inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of EORT and
additions to/deductions from the EORT fiduciary net position have been determined on the same basis as
they are reported by EORT. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the Pension Plan.
Net Pension Liability
The components of the net pension liability of EORT at September 30, 2018, were as follows:
EORT
Total pension liability $ 8,488,936
Plan fiduciary net position (7,375,239)
Net pension liability $ 1,113,697
Actuarial Assumptions
The total pension liability in the January 1, 2018 actuarial valuation was determined using the following
assumptions, applied to all periods in the measurement
Actuarial Assumptions
Measurement Date January 1, 2018
Assumed rate of return on 3.75% for the period Jan 1, 2018 and future periods, net
investments of pension plan investment expense
Inflation Rate 2.5%
Mortality rates after commencement of monthly benefits are calculated with RP -2000 Mortality Table,
sex -distinct, rates for annuitants, adjusted for white-collar employees, and with fully -generational
mortality improvement projected under Scale BB2D. No mortality is assumed for years prior to the
expected commencement date for monthly benefits.
Long - Term Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-
block method in which best -estimate ranges of expected future real rates of return (expected returns, net
of pension plan investment expense and inflation) are developed for each major asset class. These ranges
are combined to produce the long-term expected rate of return by weighting the expected future real rates
129
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
of return by the target allocation percentage and by adding expected inflation. Best estimates of
arithmetic real rates of return by asset class included in the pensions plan's target asset allocation as of
September 30, 2018, are as follows:
Asset Class
U.S. Fixed Income
Discount Rate
Long -Term Expected
Real Rate of Return
1.50%
The discount rate used to measure the total pension liability was 3.75 percent (includes inflation). The
projection of cash flows used to determine the discount rate assumed that Plan member contributions
will be made at the current contribution rates and that contributions from the City will be made at
statutorily required rates, actuarially determined. Based on those assumptions, the Plan's fiduciary net
position was projected to be available to make all projected future benefit payments of current plan
members. Therefore, the long-term expected rate of return on pension plan investments was applied to
all periods of projected benefit payments to determine the total pension liability.
Changes in Net Pension Liability
The following table shows the EORT changes in net pension liability based on the actuarial information
provided to the City at September 30, 2018:
Balances at 10/01/2017
Changes for the year:
Service Cost
Interest
Differences between expected and
actual experience
Contributions - employer
Net investment income
Benefit payments, including
refunds of member contributions
Administrative expenses and Other
Net Changes
Balances at 9/30/2018
Total Pension
Liability
(a)
EORT
Increase (Decrease)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability
(a) - (b)
$ 8,694,583 $ 7,102,802 $ 1,591,781
319,429
(199,276)
(325,800)
(205,647)
$ 8,488,936
553,471
47,166
(325,800)
(2,400)
272,437
$ 7,375,239
319,429
(199,276)
(553,471)
(47,166)
2,400
(478,084)
$ 1,113,697
130
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following table illustrates the impact of interest rate sensitivity on the EORT net pension liability as
of September 30, 2018:
Current Discount
1% Decrease Rate 1% Increase
(2.75%) (3.75%) (4.75%)
Net Pension Liability $ 2,318,913 $
1,113,697 $ 133,211
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pension
For the year ended September 30, 2018, the City recognized pension expense of $21,466. At September
30, 2018 the City reported deferred outflows of resources from the following sources:
Net difference between projected and actual earnings on
pension plan investments
Employer contribution made subsequent to measurement
date
Total
Deferred Outflow
of Resources
406,654
553,471
$ 960,125
There is $553,471 reported as deferred outflows of resources related to pensions resulting from City
contributions made subsequent to the measurement date. Amounts will be recognized as a reduction of
the net pension liability in the year ended September 30, 2019. Other amounts reported as deferred
outflows of resources related to pensions will be recognized in pension expense as, follows:
Year ended September 30:
2019 $158,604
2020 123,082
2021 82,462
2022 42,506
131
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The following summarizes net pension liability, deferred inflow and outflow of resources at September
30, 2018, for each Pension Plan as previously discussed in Note 10:
Deferred Deferred
Net Pension Inflow of Outflow of
Plan Liability Resources Resources
FIPO $ 554,242,209 $ 23,280,625 $ 97,052,071
GESE Trust 293,105,051 26,211,235 107,546,186
GESE Excess 11,152,247 1,970,563 2,817,849
GESE Staff Trust 1,139,256 367,307 122,937
EORT 1,113,697 960,125
Total $ 860,752,460 $ 57,102,112 $ 211,071,427
Pension
Expense
49,851,064
29,155,306
1,004,457
358,206
21,466
$ 107,390,499
The schedules of changes in the net pension liability and related ratios and the schedules of
contributions, presented as Required Supplementary Information (RSI) following the notes to the
financial statements, provides additional information about the net pension liability, plan assets and
contributions for each of the City's defined benefit pension plan.
Special Benefit Plans (SBP)
Certain executive employees of the City are allowed to join the ICMA Retirement Trust's 401(a) plan
(the "SBP"). 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 the City employees is limited by the City Code to specific members of the City Clerk,
City Manager, City Attorney's offices, Department Directors, Assistant Directors, and other executives.
To participate in the plan a written trust agreement must be executed, which requires the City to
contribute 8 percent of the individual's earnable compensation, and the employee to contribute 10
percent of their salary. Participants may withdraw funds at retirement or upon separation based on a
variety of payout options. The City does not have any fiduciary responsibility relating to the plan,
consequently the plan assets are not recorded in the fiduciary funds of the City.
As of September 30, 2018, the City's participation in this plan was as follows:
Total current year's payroll for all employees
Current year's payroll for participating employees
Current year employer contributions
$ 334,349,316
8,140,076
747,695
In addition to coverage under the FIPO, the firefighters and police officers are members of two separate
non-contributory money purchase benefit plans established under the provisions of Chapters 175 and
185, Florida Statutes, respectively. These two plans are funded solely from 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 Chapter 175 and 185, Florida
132
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Statutes, are met by the FIPO. The City does not have any fiduciary responsibility relating to the SBP,
consequently plan assets are not recorded in the fiduciary funds. The total of such excise taxes received
from the State of Florida and remitted to the plans was $9.6 million for the year ended September 30,
2018. 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 the three options (1) a lump sum payment; (2) five
substantially equal payments, or (3) 10 percent 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, Florida Statutes, the City is required to permit participation to 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 under the Fraternal Order of Police (FOP) Health Insurance Trust (HIT) that is
administered separately from the City's health care plan. For non -police retirees (fire fighters, general
employees, sanitation employees and elected officials) and their dependents, the City subsidizes health
care coverage and life insurance at a discounted premium equal to the blended group rate. The City
follows GASB Statement No. 75 Accounting and Financial Reporting for Post -employment Benefits
Other than Pensions (OPEB) for financial reporting and disclosure of its OPEB plan.
Plan Description
The City 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 (the "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 FOP Health Trust.
The City offers to its retiree's comprehensive medical coverage and life insurance benefits through its
self-insurance plan. This plan was established in accordance with Section 112.0801, Florida Statutes.
Substantially all of the City's general employees, sanitation employees and firefighters may become
eligible for these benefits when they reach normal retirement age while working for the City.
As of October 1, 2017, the most recent actuarial valuation date, there are approximately 5,546 covered
participants of whom approximately 3,708 are active employees and 1,838 are retirees.
Contributions and Funding Policy
The City is authorized to establish benefit levels and approve the actuarial assumptions used in the
determination of contributions levels. Retirees are contributing the majority of their premium costs each
month. Spouses and other dependents are also eligible for coverage, although the retiree pays the
premium cost.
133
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The FOP sponsors a HIT that is partially self -insured, which provides life, heath, and accidental death and
dismemberment insurance to substantially all full-time sworn members of the City's Police department,
eligible retirees, their families and beneficiaries. The HIT 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 HIT an amount that is required to bring the HIT's minimum fund balance to $2.35 million
annually.
Currently, the City's subsidy to OPEB benefits is unfunded. There are no separate trust funds or
equivalent arrangements into which the City makes contributions to advance -fund the OPEB obligations,
as it does for its retiree pension plans. The City's cost of the OPEB benefits is funded on a pay-as-you-go
basis. The City contributed $9.7 million for the fiscal year ended September 30, 2018.
Retired Police Officers - OPEB Plan
The City's total OPEB liability for its Police Officers was determined by an actuarial valuation as of
October 1, 2017 and rolled forward to September 30, 2018 using the following assumptions applied to all
periods included in the measurement, unless otherwise specified:
Actuarial Assumptions
Projected salary increases
Discount rate
Healthcare cost trend rates
Not applicable
4.24%
9.5% for FY2017, decreasing 0.5% per year to an ultimate rate of
5.0% for FY2021
Mortality rates were based on the RPH-2014 Total Dataset mortality table with mortality improvements
Projected by Scale MP-2017 on a generational basis.
Changes of assumptions and other inputs reflect a change in the discount rate from 3.63% at September
30, 2017 to 4.24% at September 30, 2018
Discount Rate
The discount rate used to measure the total OPEB liability was 4.24 percent.
In accordance with GASB Statement No. 75, the discount rate should be the single rate that reflects the
following:
a. The long-term expected rate of return on OPEB plan investments that are expected to be used to
finance the payment of benefits, to the extent that (1) the plan's fiduciary net position is projected to
be sufficient to make projected benefit payments and (2) OPEB assets are expected to be invested
using a strategy to achieve that return.
b. A yield or index rate for 20-year, tax-exempt, general obligation municipal bonds with an average
rating of AA/Aa or higher. To the extent that the conditions in (a.) are not met.
A Trust for the OPEB plan was not opened, the plan meets the requirements of (b.) above. Thus, a
discount rate of 4.24% was adopted as of the September 30, 2018 measurement date.
134
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Changes in the Total OPEB Liability
Retired Police Officers
Increase (Decrease)
Total OPEB
Liability
(a)
Balances at 9/30/2017 S 431,729,277
Changes for the year:
Service Cost 18,643,389
Interest 16,174,180
Changes of assumptions (52,081,436)
Benefit payments, including refunds of member contributions (9,692,349)
Net Changes (26,956,216)
Balances at 9/30/2018 $404.773.061
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following table illustrates the impact of interest rate sensitivity on the total OPEB Liability for fiscal
year ending September 30, 2018:
Current Discount
1% Decrease Rate 1 % Increase
(3.24%) (4.24%) (5.24%)
Total OPEB Liability $ 565,888,266 $ 404,773,061 $ 375,967,745
The following table illustrates the impact of healthcare cost trendrate sensitivity on the total OPEB
Liability for fiscal year ending September 30, 2018:
1% Decrease
(6.00%
decreasing to
4.00%)
Health care cost
Trend Rates 1% Increase
(7.00% (8.00%
Decreasing to decreasing to
5.00%) 6.00%)
Total OPEB Liability $ 334,041,995 $ 404,773,061 $ 499,757,329
135
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the fiscal year ended September 30, 2018, the City recognized OPEB expense of $27,873,377. At
September 30, 2018, the City reported deferred inflows of resources related to OPEB in the amount of
$45,137,244 for changes in assumptions.
Amounts reported as deferred inflows of resources related to OPEB will be recognized in OPEB expense
as follows:
Year ended September 30:
2019
2020
2021
2022
2023
Thereafter
Other Than Police — OPEB Plan
$6,944,192
6,944,192
6,944,192
6,944,192
6,944,192
$10,416,284
The City's Other Than Police total OPEB liability of $192,193,000 was measured as of September 30,
2018 and determined by an actuarial valuation as of that date.
Actuarial Assumptions
The following actuarial assumptions were used and applied to all periods included in the measurement,
unless otherwise specified:
Actuarial Assumptions
Projected salary increases
Discount rate
Healthcare cost trend rates
3.5% per annum
4.24% per annum
The annual trends are based on the current HCA Consulting trend
study and are applied on a select and ultimate basis. Select trends
range from 7%-4.5% and are reduced 0.5% each year until reaching
the ultimate trend rate of 4.5%.
Mortality rates were based on the RP-2014 generational table scaled using MP-2018 and applied on a
gender -specific basis
Discount Rate
The discount rate used to measure the total OPEB liability was 4.24 %, which is based on the Bond Buyer
20-Bond GO index.
136
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Changes in the Total OPEB Liability
Other Than Police
Increase (Decrease)
Total OPEB
Liability
(a)
Balances at 9/30/2017 $ 198,669,236
Changes for the year:
Service Cost 11,604,247
Interest 7,543,984
Changes of assumptions (20,723,542)
Benefit payments, including
refunds of member contributions (4,900,471)
Net Changes (6,475,782)
Balances at 9/30/2018 S192,193,454
Change of assumptions and other inputs reflect a change in the discount rate from 3.63% at September
30, 2017 to 4.24% at September 30, 2018.
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following table illustrates the impact of interest rate sensitivity on thetotal OPEB Liability for fiscal
year ending September 30, 2018
Total OPEB Liability
Current Discount
1% Decrease Rate 1 % Increase
(3.24%) (4.24%) (5.24%)
$ 164,034,000 $ 192,193,000 $ 227,870,000
The following table illustrates the impact of healthcare cost trend rate sensitivity on the total OPEB
Liability for fiscal year ending September 30, 2018
1% Decrease
Health care cost
Trend Rates 1% Increase
Total OPEB Liability $ 157,032,000 $ 192,193,000 $ 238,064,000
137
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the fiscal year ended September 30, 2018, the City recognized OPEB expense of $16,850,732. At
September 30, 2018, the City reported deferred inflows of resources related to OPEB in the amount of
$18,426,043 for changes in assumptions.
Amounts reported as deferred inflows of resources related to OPEB will be recognized in OPEB expense
as follows:
Year ended September 30:
2019 $ 2,297,499
2020 2,297,499
2021 2,297,499
2022 2,297,499
2023 2,297,499
Thereafter $ 6,938,548
NOTE 12. — COMMITMENTS AND CONTINGENCIES
The City participates in a number of federal and state assisted programs. These programs are subject to
audit under the requirements of the Florida Single Audit Act and Chapter 10.550, Rules of the Auditor
General and OMB Uniform Guidance. The City received revenues and contributions related to grants
from Federal agencies and the State of Florida. These grants are for specific purposes and are subject to
review and audit by the grantor agencies. Such audits could result in requests for reimbursement for
expenditures being disallowed under the grant terms. Based upon prior experience, the City's
management believes any requests for reimbursement, if any, will not be significant.
Global Agreement: In December 2007, the City, the County, the OMNI CRA, and the Southeast
Overtown Park West CRA, entered into an inter -local agreement that establishes the funding framework
for several major facilities and infrastructure improvement projects. Those projects include the Arsht
Performing Arts Center ("Arsht Center"), Miami Port Tunnel, Museum Park improvements, and the
Miami Marlins Baseball Stadium and parking facilities.
The agreement specifically calls for the OMNI CRA to increase its contribution to the County to service
debt and other loans on the Arsht Center. Further, the agreement established parameters by which the
City, County, and CRAs would move forward with the legal process of extending the lives and expanding
the geographic boundaries of both CRAs, and utilizing the additional tax increment revenues to fmance
affordable housing, infrastructure, and redevelopment projects consistent with the CRAs' redevelopment
plans. The additional OMNI CRA tax increment revenues were available to fmance the City's
contributions to the Miami Port Tunnel project and the Museum Park improvements. Finally, the
agreement addressed the City's and County's Miami Marlins Major League Baseball project stadium and
related parking facilities built on the former Orange Bowl location site. To date, the total contributions
required to be made by the City for the Museum Park Improvement projects has not been determined. The
OMNI CRA has voted to provide an annual grant of tax increment revenues to the City in connection
with repayment of the City's Special Obligation Non -Ad Valorem Revenue Refunding Bonds, Series
(Port of Miami Tunnel Project) issued December 13, 2012. The Special Obligation Non -Ad Valorem
138
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Revenue Refunding Bonds is City debt. As such the City is responsible for all debt service. However, the
OMNI CRA has agreed to provide the City with the required annual debt service. In the event the CRA
defaults on its commitment to the City, the City would be responsible to pay the debt service from legally
available funds. As of September 30, 2018, the total outstanding related debt for the Non -Ad Valorem
Revenue Refunding Bonds, Series (Port of Miami Tunnel Project) issued December 13, 2012 was
approximately $38.1 million.
FOP, Miami Lodge No. 20 and Alfredo Vega v. City of Miami, et al. This is an action by the Fraternal
Order of Police ("FOP") and individual law enforcement officers challenging the 1994 police sergeant's
examination seeking promotions retroactive to 1994, with back pay and emoluments. The testing
company was joined as a party but severed from the present proceedings. The trial court bifurcated the
action to address liability separate from damages. The liability portion of this case was tried in 2007, and
the trial court ruled that the exam did not comply with the Civil Service Rules. The parties are now in the
damages portion. The trial court has ruled that FOP did not have standing to recover any monetary relief,
thereby leaving the seven individual Plaintiffs and an additional individual who was permitted to
intervene. Additional union members intervened. The Third District Court of Appeal affirmed the trial
court's order denying the FOP monetary relief. The City's potential exposure may exceed $1,000,000.
The first trial of an intervenor resulted in a verdict for the intervenor in the amount of $100,000.
Additional trials of intervenors will continue, subject to the City's ability to appeal and challenge the right
of intervention.
Fraternal Order of Police, Walter E. Headley, Jr., Miami Lodge No. 20 v. City of Miami, The FOP
Miami Lodge 20 (hereinafter the "Police Union") alleges that it has a Collective Bargaining Agreement
with the City, effective through September 30, 2010, that the parties exchanged initial proposals for a
successor agreement, and that the parties have held several bargaining sessions. The Police Union further
alleges that during the several bargaining sessions, the City never advised the Police Union that there was
a need to reach settlement on economic items expeditiously, or that the City intended to declare a
"financial urgency" and invoke the process set forth in Section 447.4095, Florida Statutes. The Police
Union contends that Section 447.4095 may only be invoked to modify the terms of an existing agreement.
The Police Union further alleges that although the parties continued to bargain for a successor collective
bargaining agreement on August 9 and 12, 2010, the parties never discussed wages or pensions, but on
August 16, 2010, the City advised the Public Employees Relations Commission ("PERC") that it had
engaged in negotiations on the impact of the fmancial urgency, and any action necessitated by the
fmancial urgency, and that a dispute existed. The Police Union then alleges that on August 31, 2010, the
City unilaterally took action to alter the terms and conditions of employment before reaching impasse
with the Police Union, in violation of Section 447.501(1)(a) and (1)(c). Further, the Police Union alleges
that, although the changes were not discussed with them, they were discussed in a closed door unnoticed
"shade" meeting conducted in violation of Section 447.605, Florida Statutes (an exemption to the
Sunshine Law). The Police Union contends that the failure of the City to have any discussions with the
Police Union on these matters constitutes bad faith or surface bargaining in violation of Section
447.501(1)II (a), Florida Statutes. It also asserts that by unilaterally altering terms and conditions of
employment before completion of the impasse procedure set forth in Section 447.403, Florida Statutes,
and by not responding to a request for records, the City violated Section 447.501(1)(a) and (1)(c), Florida
Statutes. The City received a recommended order from the Hearing Officer in its favor, which was
ultimately adopted by the City Commission. The FOP appealed to the Florida District Court of Appeals,
First District. The First District affirmed. The FOP sought review by the Florida Supreme Court. The
Florida Supreme Court accepted review. The Supreme Court heard oral arguments on April 7, 2015. On
March 2, 2017, the Florida Supreme Court issued a decision in favor of FOP, quashing the decision of the
First District and remanding the case to the First District for proceedings consistent with State law. The
139
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
PERC entered an Order on the Merits of the Unfair Labor Practice Charge and scheduled a back -pay
hearing in June 2018. Despite the pendency of the back -pay case, the FIPO Trust voted to disburse
adjusted pension payments to its members. The City filed an injunction and the Third District Court of
Appeal held that the FIPO Trust had no authority to make adjusted pension payments at that time, and
that neither the Florida Supreme Court decision in Headley, nor the October 18, 2017 PERC Order
rescinded the City's current pension code. The Third District Court of Appeal emphasized that only the
City has the authority to change its pension code, as appropriate, and, at the conclusion of the fmancial
urgency litigation proceedings. The Third District also affirmed the trial court's ruling abating the
proceedings pursuant to Chapter 164 of the Florida Statutes. Pursuant to the Court's opinion, the parties
should commence formal intergovernmental dispute resolution proceedings under Florida Statutes
Chapter 164. The FOP backpay case before the PERC began on June 18, 2018. FOP presented its case
and the parties agreed to close the record and attempt mediation. The parties have negotiated a settlement
agreement, which was approved by the City Commission on October 25, 2018. The settlement with the
FOP requires the City to pay $33 million, including backpay claims and increases to future pay and
pension benefits by the Police Union. The administration has settled this matter and accrued the amounts
due of $33.0 million as a long-term liability at fiscal year end.
International Association of Firefighters, Local 587 v. City of Miami, The IAF Local 587 (hereinafter
"Firefighters Union") alleges that it has a Collective Bargaining Agreement ("CBA") with the City,
effective through October 1, 2010, that, in exchange for concessions by the Firefighters Union, the CBA
was extended through September 30, 2011, and that the City expressly waived its right not to fund any
year of the CBA except in the case of "true fiscal emergency", defined in the CBA as, "the City must
demonstrate that there is no other reasonable alternative means of appropriating monies to fund the
agreement for that year or years". The Firefighters Union further alleges that less than six (6) months
after agreeing to the extension, on April 30, 2010, the City invoked the process under Section 447.4095,
Florida Statutes, claiming "financial urgency," and on August 31, 2010, unilaterally took action to modify
wages, insurance and pension benefits. The Firefighters Union asserts that the invocation of Section
447.4095, Florida Statutes was improper and was waived by the City in the CBA. Further, the
Firefighters Union alleges that, prior to their enactment, the modifications to the CBA were discussed in a
closed door, unnoticed "shade" meeting in violation of Section 447.605, Florida Statutes (an exemption to
the Sunshine Law). Finally, the Firefighters Union asserts that the City failed to bargain collectively and
in good faith by enacting the changes of August 31, 2010, by not providing the Firefighters Union with
notice in advance, and by failing to discuss, bargain over, impact bargain, or complete the process set
forth in Section 447.403 and/or Section 447.4095, Florida Statutes. The City received a recommended
order from the Hearing Officer in its favor, which was adopted by the City Commission. The Third
District remanded the case back to PERC, consistent with the outcome in Headley v. City of Miami. The
PERC entered an Order on the Merits of the Unfair Labor Practice Charge and scheduled a backpay
hearing in June 2018. The Firefighters Union backpay case before the PERC began on June 5, 2018. The
record was recessed so that the parties could attempt mediation. On October 11, 2018, the City
Commission approved a new labor contract and a settlement agreement with the Firefighters Union for
$20.5 million, including backpay claims and increases to future pay and pension benefits by the
Firefighters Union. The City has settled this matter and accrued payments due of $20.5 million as a long-
term liability at fiscal year end.
346 NW 29t' Street, LLC, et al. v. City of Miami, This is a class action for declaratory relief regarding
the City's obligations pursuant to Chapter 56, Article V, of the Code of the City of Miami. The city
commission, at its discretion, may grant, by ordinance, ad valorem tax exemptions to new and expanding
businesses located within enterprise zones. Qualifying new or expanding businesses were eligible to
receive an exemption up to 100% of the municipal portion of their real or personal property ad valorem
140
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
taxes. The Florida Statutes which enabled this exemption gave the right to all applicants to be considered
by the City Commission. If they were approved as qualified by the administration, they were entitled to
an up or down vote by the Commission. If the administration did not approve their application, they had a
right to appeal to the Commission. Unfortunately, approved applicants were not submitted and rejected
applicants were not advised of their right to appeal. The trial court certified the class and granted the
Plaintiff's motion for summary judgment on liability. On January 25, 2018, the City of Miami
Commission approved Resolution #18-0033 authorizing to pay an amount not to exceed $12,000,000 in
full settlement of any and all claims alleged against the City in the class action. $2.0 million has been
accrued for the payment of attorney fees, additional claims will not be processed until plaintiffs present
their case before a magistrate.
Litigation
The City is involved in various lawsuits arising from the ordinary course of operations. Although the
outcome of these matters is not presently determinable, it is the opinion of management of the City based
upon consultation with legal counsel, that the outcome of these matters will not have an adverse material
effect on the fmancial position of the City beyond the amount accrued for its self -insured liability and the
amount accrued for estimated probable losses to date.
A third party sued the City for breach of contract and is seeking damages of about $200 million. The trial
court bifurcated the case, conducted a non jury trial on liability, and found in favor of the third party on
liability. The damages trial is scheduled for April 2019. The damages sought by the third party include
actual damages to date and future consequential damages, as a result of the breach of contract. Based
upon consultation with legal counsel, the City has reported a probable loss for this matter and accrued a
liability. Management is unable to reasonably estimate additional losses, if any, but they could be
significant. The City continues to believe that it has meritorious defenses to the damages sought by the
third party in the trial court, which management believes is substantially overstated.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other commitments for expenditure
of funds are recorded in order to reserve that portion of the applicable appropriation, is utilized in the
governmental funds. Encumbrances do not constitute expenditures or liabilities and are recorded in the
appropriate fund balance classifications of restricted, committed or assigned in accordance with the City's
fund balance policy.
The City has outstanding encumbrances in the governmental funds. The following is a summary of these
commitments at September 30, 2018.
Governmental Funds
Major Funds:
Other Capital Projects
Impact Fee
Non Major Governmental Funds
$ 28,696,830
7,816,499
19,791,563
56,304,892
141
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
NOTE 13. — SUBSEQUENT EVENTS
On October 15, 2018 The City of Miami entered in to a Settlement Agreement between FRATERNAL
ORDER OF POLICE, INC (FOP) and the CITY OF MIAMI in regard to September 21, 2010, charge,
Case No. CA-2010-119. In settlement of the FOP's damages claims, the City agreed to pay the total sum
of $33 million in damages to the affected bargaining unit members as follows; $15,500,000 in 2019, and
$2, 917,000 each year beginning October 1, 2020 through October 1, 2025.
On October 25, 2018 the City Commission adopted an ordinance to abolish The Miami Sports and
Exhibition Authority (MSEA) by amending section 18-72(A)(2) and 18-74(C)® of the procurement code
and transferring all asset and liabilities to the City; establishing a special revenue fund. MSEA's revenues
are solely garnered from rent collected from the lease of property to the Miami Children's Museum, a
seaplane base, and a heliport on Watson Island in accordance with an intermodal agreement between the
City and MSEA. The City will assume all obligations and liabilities of MSEA upon its abolishment.
On November 15, 2018, the City issued $57,405,000 Special Obligation Refunding Bonds, Series 2018A
for the purpose of providing funds, together with other available moneys to (i) refund all of the City's
outstanding Special Obligation Bonds, Series 2007 (Street and Sidewalk Improvement Program) and (ii)
pay the costs of issuance of the series 2008A Bonds. In addition, the City also issued $42,620,000
Taxable Special Obligation Refunding Series 2018B Bonds for the purpose of providing funds, together
with other available moneys to (i) current refund all of the City's outstanding Special Obligation Bonds,
Series 2009 (Street and Sidewalk improvement program) and (ii) pay the costs of issuance of the Series
2018B Bonds. Furthermore, the City issued $7,455,000 Taxable Special Obligation Revenue Series
2018C Bonds for the purpose of providing funds together with other available moneys to (i) finance the
cost of acquisition, construction, and improvements to certain roadways, drainage, Streetscapes and
related appurtenance and (ii) pay the costs of issuance of the Series 2018C Bonds.
On December 12, 2018, the City of Miami Commission approved $58 million of the $400 million Miami
Forever Bond voted by residents in November 2017. The $58 million will fund the first set of Miami
Forever Bond projects. The City of Miami will use the proceeds as follows: $10.3 million toward fighting
sea level rise, including a redesign of Brickell Bay Drive and the installation of 50 new one-way valves;
$15 million for new affordable housing projects and a single-family home rehabilitation program;
$420,000 for upgrades to Fire Station No. 10, $7.6 million to improve nearly 4 miles of roadways; and
$25.8 million to enhance the City's public parks, including upgrading playgrounds, repairing sidewalks,
and enhancing accessibility.
NOTE 14. — PRONOUNCEMENTS ISSUED, BUT NOT YET ADOPTED
GASB Statement No. 83, Certain Asset Retirement Obligations, this Statement will enhance
comparability of financial statements among governments by establishing uniform criteria for
governments to recognize and measure certain AROs, including obligations that may not have been
previously reported. This Statement also will enhance the decision -usefulness of the information provided
to financial statement users by requiring disclosures related to those AROs. The requirement of this
statement are effective for reporting periods beginning after September 30, 2018.
GASB Statement No. 84, Fiduciary Activities, this Statement establishes criteria for identifying
fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether
a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a
142
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and
postemployment benefit arrangements that are fiduciary activities. This Statement describes four fiduciary
funds that' should be reported, if applicable: (1) pension (and other employee benefit) trust funds, (2)
investment trust funds, (3) private -purpose trust funds, and (4) custodial funds. Custodial funds generally
should report fiduciary activities that are not held in a trust or equivalent arrangement that meets specific
criteria. The requirements of this Statement are effective for reporting periods beginning after December
15, 2018.
GASB issued Statement No. 87, Leases. The objective of this Statement is to better meet the information
needs of financial statement users by improving accounting and fmancial reporting for leases by
governments. This Statement increases the usefulness of governments' financial statements by requiring
recognition of certain lease assets and liabilities for leases that previously were classified as operating
leases and recognized as inflows of resources or outflows of resources based on the payment provisions
of the contract. It establishes a single model for lease accounting based on the foundational principle that
leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to
recognize a lease liability and an intangible right -to -use lease asset, and a lessor is required to recognize a
lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of
information about governments' leasing activities. The requirements of this Statement are effective for
reporting periods beginning after December 15, 2019.
GASB issued Statement No. 88, the objective of this Statement is to improve the information that is
disclosed in noes to government financial statements related to debt, including direct borrowing and direct
placements. This Statement defines debt for purpose of disclosure in notes to financial statements as
liabilities that arises from a contractual obligation to pay cash (or other assets that may be used in lieu of
cash) in one or more payments to settle an amount that is fixed at the date the contractual obligation is
established. The statement requires that additional information related to debt be disclosed in notes to
fmancial statements, including lines of credit; assets pledged as collateral for the debt; and terms specified
in debt agreements related to significand events of default with financial -related consequences, significant
termination events with fmancial-related consequences, and significant subjective acceleration clauses
This statement also requires that existing and additional information be provided for direct borrowings
and direct placements of debt separately from other debt. The requirements of this statement are effective
for reporting period beginning after June 15, 2018.
GASB issued Statement No. 90, the primary objectives of this Statement are to improve the consistency
and comparability of reporting a government's majority equity interest in a legally separate organization
and to improve the relevance of financial statement information for certain component units. The
requirements of this statement effective for reporting period beginning after December 15, 2018.
The City's management has not yet determined the effect these statements will have on the City's
financial statements.
143
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
NOTE 15. — RESTATEMENT OF FIDUCIARY NET POSITION
The October 1, 2017 City of Miami Fire Fighters' and Police Officers' Retirement Trust beginning net
position restricted for pension benefits was restated because it was determined that, although the Trust has
fiduciary oversight over the Deferred Retirement Option Program (DROP), DROP investments that were
previously reported as part of the Trust's assets are titled and held outside of the Trust and therefore
should not be included as Trust assets. Therefore, those assets were not available to pay pension benefits
as they were already paid into the DROP accounts. As a result of the correction of an error to the DROP
assets, the beginning net position restricted for pension benefits was restated to remove DROP
investments and the addition and deduction transactions related to the DROP Program.
The restatement of net position restricted for pension benefit is as follows:
Net position restricted for pension benefits - October 1, 2017
Restatement
Net position restricted for pension benefits - Octoberl, 2017
$ 1,732,531,765
(181,181,304)
$ 1,551,350,461
The restatement does not impact the City's net pension liability or the actuarially determined contribution,
nor does it have any effect on the calculation of the actuarial obligation for the Plan, nor does it impact
the benefits paid to the members of the Plan.
144
Required SupplenlcntarInformation
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - General Fund
For The Year Ended September 30, 2018
(Unaudited)
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Property Taxes $ 325,976,000 $ 325,976,000 $ 325,267,816 $ (708,184)
Franchise and Other Taxes 110,344,000 110,344,000 113,992,902 3,648,902
Licenses and Permits 65,738,000 65,738,000 73,313,619 7,575,619
Fines and Forfeitures 15,743,000 15,743,000 13,887,391 (1,855,609)
Intergovernmental Revenues 67,662,000 67,662,000 69,954,774 2,292,774
Charges for Services 109,673,000 109,673,000 117,481,066 7,808,066
Investment Earnings (Loss) 2,500,000 2,500,000 5,808,378 3,308,378
Other 22,620,000 30,929,000 I9,057,070 (11,871,930)
Total Revenues 720,256,000 728,565,000 738,763,016 10,198,016
Expenditures:
General Government
Mayor 1,333,000 1,415,000 1,303,929 (111,071)
Commissioners 3,602,000 3,602,000 3,287,269 (314,731)
City Manager 3,916,000 3,916,000 3,520,745 (395,255)
Agenda Coordination 397,000 397,000 370,961 (26,039)
City Clerk 1,753,000 1,753,000 1,781,705 28,705
Neighborhood Enhancement Team 6,514,000 6,542,000 6,387,763 (154,237)
Civil Service Board 428,000 428,000 379,525 (48,475)
Independent Auditor General 1,126,000 1,126,000 870,715 (255,285)
Communications 1,592,000 1,701,000 1,547,783 (153,217)
Human Resources 4,603,000 4,753,000 4,593,259 (159,741)
Innovation and Technology Department 10,956,000 11,024,000 11,193,794 169,794
City Attorney 8,418,000 8,678,000 8,555,927 (122,073)
Management and Budget 2,843,000 2,843,000 2,488,907 (354,093)
Procurement 2,701,000 2,701,000 2,528,273 (172,727)
Equal Opportunity & Diversity Programs 438,000 438,000 410,397 (27,603)
Finance 8,873,000 8,873,000 8,709,603 (163,397)
Capital Improvements and Transportation 3,252,000 3,361,000 3,436,043 75,043
Grants Administration 1,741,000 1,741,000 1,666,781 (74,219)
Non -Departmental 55,051,000 45,252,000 36,266,112 (8,985,888)
Risk Management 2,920,000 2,920,000 2,926,977 6,977
Resiliency and Sustainability 785,000 785,000 499,186 (285,814)
Film and Entertainment 424,000 424,000 413,111 (10,889)
Veterans Affairs and Homeless Services 1,722,000 1,972,000 1,894,289 (77,711)
Total General Govemment _125,388,000 116,645,000 105,033,054 (11,611,946)
Planning and Development
Building 12,533,000 13,013,000 13,258,097 245,097
Planning 4,763,000 4,929,000 4,978,945 49,945
Zoning Department 2,305,000 2 526,000 2,376,439 (149,561)
Total Planning and Development 19,601,000 20,468,000 20,613,481 145,481
Public Works
Solid Waste 33,291,000 33,301,000 31,702,600 (1,598,400)
General Service Administration 23,067,000 23,067,000 23,577,396 510,396
Public Works and Sustainability 21,111,000 21,588,000 22,122,624 534,624
Total Public Works 77,469,000 77,956,000 77,402,620 (553,380)
Public Safety
Code Compliance 6,728,000 6,892,000 6,795,883 (96,117)
Fire -Rescue 130,864,000 133,011,000 132,215,386 (795,614)
Police 235,486,000 236,385,000 233,431,327 (2,953 673)
Total Public Safety 373,078,000 376,288,000 372,442,596 (3,845,404)
Real Estate and Asset Management 12,052,000 12,344,000 11,716,751 (627,249)
Community and Economic Development 2,411,000 1,668,000 1,566,902 (101,098)
Parks and Recreation 44,752,000 45,947,000 46,456,057 509,057
Total other Departmnets 59,215,000 59,959,000 59,739,710 (219,290)
Total Expenditures 654,751,000 651,316,000 635,231,461 (16,084,539)
Excess (Deficiency) of Revenues Over (Under) Expenditures
65,505,000 77,249,000 103,531,555 26,282,555
Other Financing Sources (Uses):
Transfers In 6,464,000 7,022,000 6,163,609 (858,391)
Transfers Out (72,077,000) (84,379,000) (82,653,000) 1,726,000
Proceeds from Sale of Property 108,000 108,000 277,969 169,969
Total Other Financing Sources (Uses) (65,505,000) (77,249,000) (76,211,422) 1,037,578
Net Change in Fund Balance 27,320,133 27,320,133
Fund Balance - Beginning of Year 160,143,418 160,143,418
Fund Balance - End of Year $ $ 8 187,463,551 $ 187,463.551
145
Notes to Required Supplementary Information
City of Miami, Florida
Year Ended September 30, 2018
(Unaudited)
NOTE 1. - BUDGETARY POLICY
A. Budget Policy
The City Commission annually adopts an operating budget ordinance for all governmental funds of the City, except for
the Capital Project Funds. The Capital Project Funds are budgeted on a total project basis for which annual budgets are
not available. For governmental funds, budgets are prepared on a basis consistent with accounting principles generally
accepted in the United States of America.
B. Budget -Legal Compliance
The City follows these procedures in establishing the budgetary data reflected in the accompanying financial
statements:
• Prior to August 31s1, 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 October ls`. The
operating budget includes proposed expenditures and the means of financing them.
• The Mayor prepares and delivers a budgetary address annually to the people of the City between July 151 and
September 30th.
• Such report is prepared after consultation with the City Manager.
• Public hearings are conducted to obtain taxpayer comments.
• Prior to October 1S`, the budget is legally enacted through the passage of a resolution and adoption of the budget
report. Management may not make changes to the adopted budget without the approval of a majority vote of the
Commission.
• The Commission may transfer among departments any part of an unencumbered balance of an appropriation to a
purpose for which an appropriation for the current year has proved insufficient. At the close of each fiscal year,
the unencumbered balance of each appropriation reverts to the fund from which it was appropriated and is subject
to future appropriations.
• Budgets are monitored at varying levels of classification detail; however, budgetary control is legally maintained
at the fund level except for the General Fund, which is maintained at the departmental level.
All budget amendments require City Commission approval. During fiscal year 2018, supplemental appropriations
totaling $8.9 million in the General Fund, comprised of a decrease in allocations of $3.4 million to General Fund
expenditures by departments and an increase of $12.3 million in Transfers -In. The Special Revenue Funds budget was
also increased in fiscal year 2018 by approximately $12.6 million, of which $2.4 million were allocated to Planning,
$1.1 million to Police Services, $391,000 to City Clerk, $1.1 million to Community Development, $98,900 to Parks
and Rec., $692,000 to General Special Revenue, $1.7 million to Public Works, $1.8 million to Transportation and
Transit, $275,000 to Fire Rescue, $3.3 million to Departmental Initiative, and a reduction to the Tree Trust Fund
$217,000. During fiscal year 2018, the General fund had expenditures of approximately $2.6 million attributable to
capital expenditures; these expenditures are budgeted at the department level and not reported separately on the General
Fund Budget to Actual Schedule of Revenues, Expenditures and Changes in Fund Balance presented on page 146.
146
Required Supplementary Information
City of Miami, Florida
Schedule of Changes in the Total OPEB Liability and Related Ratios
Retired Police Officers Other Post Employment Benefit
September 30, 2018
(Unaudited)
2018
Total OPEB liability
Service cost $ 18,643,389
Interest 16,174,180
Changes of benefit terms
Changes of assumptions (52,081,436)
Benefit payments (9,692,349)
Net Change in total OPEB liability (26,956,216)
Total OPEB liability - beginning 431,729,277
Total OPEB liability - ending $ 404,773,061
Covered payroll
City's Total OPEB liability as a percentage of
covered payroll
Not Available
Not Available
Note to Schedule:
This Schedule is presented to illustrate the requirement of GASB 75.
The City implemented GASB No.75 for the fiscal year ended September 30, 2018.
This Schedule will present 10 years as information becomes available.
Required Supplementary Information
City of Miami, Florida
Schedule of Changes in the Total OPEB Liability and Related Ratios
Other Than Police Officers Other Post Employment Benefit
September 30, 2018
(Unaudited)
2018
Total OPEB liability
Service cost $ 11,604,247
Interest 7,543,984
Changes of benefit terms
Differences between expected and actual
experience
Changes of assumptions (20,723,542)
Benefit payments (4,900,471)
Net Change in total OPEB liability (6,475,782)
Total OPEB liability - beginning 198,669,236
Total OPEB liability - ending $ 192,193,454
Covered payroll $ 154,355,815
City's Total OPEB liability as a percentage of
covered payroll 125.00%
Note to Schedule:
This Schedule is presented to illustrate the requirement of GASB 75.
The City implemented GASB No.75 for the fiscal year ended September 30, 2018.
This Schedule will present 10 years as information becomes available.
Required Supplementary Information
City of Miami, Florida
Schedule of Changes in the Net Pension Liability and Related Ratios
Firefighters and Police (FIFO)
Last Five Fiscal Years
(Unaudited)
Total pension liability
Service cost
Interest
Changes of benefit terms
Differences between expected and actual
experience
Changes of assumptions
Benefit payments, including refunds of member
contributions
Net change in total pension liability
Total pension liability - beginning
Total pension liability - ending
Plan fiduciary net position
Contributions - employer
Contributions - member
Net investment income
Benefit payments, including refunds of member
contributions
Administrative expenses
Other
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Update for Update for
restatement 2018 restatement 2017
$ 27,965,925
161,257,121
(122,641,436)
21,545,185
16,618,357
$ 26,279,333
160,085,065
122,641,436
2016
$ 21,625,163
156,265,650
16,422,875 12,725,721
30,651,781
(194,663,548) (182,692,360) (166,203,470)
(89,918,396) 142,736,349 55,064,845
2,365,283,830 2,222,547,481 2,167,482,636
2,275,365,434 2,365,283,830 2,222,547,481
56,999,866
14,258,763
113,891,834
(194,663,548)
(2,086,709)
191,254
53,264,009
13,206,378
150,421,653
(182,692,360)
(2,058,797)
292,382
(11,408,540) 32,433,265
1,732,531,765
Plan fiduciary net position - ending 1,721,123,225
City's net position liability $ 554,242,209
Covered payroll $ 141,497,840
Net pension liability as a percentage of covered
payroll 391.70%
1,700,098,500
1,732,531,765
48,672,615
12,082,805
132,946,827
(166,203,470)
(2,029,168)
(42,726)
25,426,883
1,674,671,617
2015
$ 19,203,823
156,479,438
9,453,429
(16,970,540)
14,895,466
2014
$ 17,233,272
155,338,970
(6,638,755)
(165,535,327) (139,860,276)
17,526,289
26,073,211
2,149,956,347 2,123,883,136
2,167,482,636 2,149,956,347
48,616,677
9,317,231
35,529,492
(165,535,327)
(2,222,561)
269,771
(74,024,717)
47,654,757
9,462,569
133,609,444
(139,860,276)
(2,086,240)
(42,726)
48,737,528
1,748,696,334 1,699,958,806
1,700,098,500 1,674,671,617 1,748,696,334
5 632,752,065 5 522,448,981
$ 133,083,231 $ 106,278,378
475.46%
Note to Schedule:
This Schedule is presented to illustrate the requirement of GASB 68.
The City implemented GASB No.68 for the fiscal year ended September 30, 2015.
This Schedule will present 10 years as information becomes available.
491.59%
$ 492,811,019 $ 401,260,013
$ 93,705,765 $ 85,222,842
525.91%
470.84%
149
Required Supplementary Information
City of Miami, Florida
Schedule of Changes in the Net Pension Liability and Related Ratios
General and Sanitation Employees (GESE)
Last Four Fiscal Years
(Unaudited)
Total pension liability
Service cost
Interest
Changes of benefit terms
Differences between expected and actual experience
Changes of assumptions
Benefit payments, including refunds of member
contributions
Net change in total pension liability
Total pension liability - beginning
Total pension liability- ending
Plan fiduciary net position
Contributions - employer
Contributions - member
Net investment income
Benefit payments, including refunds of member contributions
Administrative expenses
Other
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending
2018
2017
2016
$ 12,906,853 $ 10,165,542 $ 9,234,478
64,220,387 63,603,300 64,212,607
10,997,320 8,476,546 (8,035,778)
64,620,251 (421,932) -
(73,580,735) (73,827,066) (73,029,933)
79,164,076 7,996,390 (7,618,626)
881,795,448 873,799,058 881,417,684
960,959,524 881,795,448 873,799,058
34,355,719
11,081,234
78,645,544
(73,580,735)
(352,230)
50,149,532
617,704,941
667,854,473
City's net position liability $ 293,105,051
Covered payroll $ 97,373,080
Net pension liability as a percentage of covered payroll 301.01%
Note to Schedule:
This Schedule is presented to illustrate the requirement of GASB 68.
The City implemented GASB No.68 for the fiscal year ended September 30, 2016.
This Schedule will present 10 years as information becomes available.
32,881,500
9,595,465
60,237,354
(73,827,066)
(233,337)
28,653,916
2015
$ 8,678,294
64,248,602
(73,771,095)
(844,199)
882,261,883
881,417,684
33,036,318 30,710,096
8,163,643 7,231,235
1,496,395 65,272,884
(73,029,933) (73,771,095)
(176,693) (265,995)
(30,510,270) 29,177,125
589,051,025 619,561,295 _ 590,384,170
617,704,941 589,051,025 619,561,295
$ 264,090,507 $ 284,748,033 $ 261,856,389
$ 81,069,095 $ 71,924,747 $ 66,370,246
325.76%
395.90%
394.54%
150
Required Supplementary Information
City of Miami, Florida
Schedule of Changes in the Net Pension Liability and Related Ratios
General and Sanitation Employees Excess Benefit Plan (GESE Excess)
Last Four Fiscal Years
(Unaudited)
2018 2017 2016 2015
Total pension liability
Service cost $ - $ - $ - $ -
Interest 385,137 469,106 392,659 427,362
Changes of benefit terms - - - -
Differences between expected and actual experience (1,948,114) (516,393) 3,177,002 763,199
Changes of assumptions (92,094) 1,459,230 - -
Benefit payments, including refunds of member
contributions (674,572) (680,534) (653,302) (556,805)
Net change in total pension liability (2,329,643) 731,409 2,916,359 633,756
Total pension liability - beginning
Total pension liability - ending
Plan fiduciary net position
Contributions - employer
Contributions - member
Net investment income
13,481,890 12,750,481 9,834,122 9,200,366
11,152,247 13,481,890 12,750,481 9,834,122
674,572 680,534 648,302 561,805
Benefit payments, including refunds of member contributions (674,572) (680,534) (653,302) (556,805)
Administrative expenses 5,000 (5,000)
Other -
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending
City's net position liability
$ 11,152,247 S 13.481,890 $ 12,750,481 $ 9,834,122
Covered -employee payroll $ 97,373,080 $ 81,069,095 $ 71,924,747 $ 66,370,246
Net pension liability as a percentage of covered -employee payroll 11.45% 16.63% 17.73% 14.82%
Note to Schedule:
This Schedule is presented to illustrate the requirement of GASB 68.
The City implemented GASB No.68 for the fiscal year ended September 30, 2016.
This Schedule will present 10 years as information becomes available.
151
Required Supplementary Information
City of Miami, Florida
Schedule of Changes in the Net Pension Liability and Related Ratios
General and Sanitation Employees Staff Trust Plan (GESE Staff)
Last Four Fiscal Years
(Unaudited)
Total pension liability
Service cost
Interest
Changes of benefit terms
Differences between expected and actual experience
Changes of assumptions
Benefit payments, including refunds of member contributions
Net change in total pension liability
Total pension liability - beginning
Total pension liability - ending
Plan fiduciary net position
Contributions - employer
Contributions - member
Net investment income
Benefit payments, including refunds of member contributions
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending
City's net position liability
Covered -employee payroll
Net pension liability as a percentage of covered -employee payroll
2018
2017 2016
2015
$ 52,832 $ 45,464 S 43,416 $ 77,022
320,492 365,280 353,121 345,755
460,951 -
10,440 (686,043) 99,869
105,798
(295,460) (332,554) (340,299) (311,388)
655,053 (607,853) 156,107 111,389
4,364,739 4,972,592 4,816,485 4,705,096
5,019,792 4,364,739 4,972,592 4,816,485
247,449 269,054 291,087
24,542 19,316 19,838
438,774 364,079 (15,614)
(295,460) (332,554)
415,305 319,895 (44,988)
291,968
23,377
338,281
(340,299) (311,388)
342,238
3,465,231 3,145,336 3,190,324 2,848,086
3,880,536 3,465,231 3,145,336 3,190,324
$ 1,139,256 $ 899,508 S 1,827,256 $ 1.626,161
S 225.148 S 172,459 $ 164,547
506.00% 521.58%
Note to Schedule:
This Schedule is presented to illustrate the requirement of GASB 68.
The City implemented GASB No.68 for the fiscal year ended September 30, 2016.
This Schedule will present 10 years as information becomes available.
$ 298,958
1110.48% 543.94%
152
Required Supplementary Information
City of Miami, Florida
Schedule of Changes in the Net Pension Liability and Related Ratios
Elected Officers Retirement Trust (EORT)
Last Five Fiscal Years
(Unaudited)
2018 2017 2016 2015 2014
Total pension liability
Service cost $ - $ - $ 88,956 $ 98,028 $ 257,052
Interest 319,429 317,610 316,813 304,126 308,476
Changes of benefit terms
Differences between expected and actual
experience (199,276) 53,460 (2,221) (20,969) (250,718)
Changes of assumptions - 228,310
Benefit payments, including refunds of member
contributions (325,800) (318,754) (263,320) (260,660) (261,135)
Net change in total pension liability (205,647) 52,316 140,228 348,835 53,675
Total pension liability - beginning
Total pension liability - ending
8,694,583 8,642,267 8,502,039 8,153,204 8,099,529
8,488,936 8,694,583 8,642,267 8,502,039 8,153,204
Plan fiduciary net position
Contributions - employer 553,471 406,911 860,089 551,222
Contributions - member
Net investment income 47,166 54,780 42,971 61,789 (19,893)
Benefit payments, including refunds of member
contributions (325,800) (318,754) (263,320) (260,660) (261,135)
Administrative expenses (2,400) (2,400) (2,400) (2,400) (2,400)
Other
Net change in plan fiduciary net position 272,437 140,537 637,340 349,951 (283,428)
Plan fiduciary net position - beginning
Plan fiduciary net position - ending
City's net position liability
Covered -employee payroll
Net pension liability as a percentage of covered -
employee payroll
7,102,802 6,962,265 6,324,925 5,974,974 6,258,402
$ 7,375,239 $ 7,102,802 $ 6,962,265 $ 6,324,925 $ 5,974,974
$ 1,113,697 $ 1,591,781 $ 1,680,002 $ 2,177,114 $ 2,178,230
$ $ 100,788 $ 103,194 $ 298,788
N/A N/A 1666.87% 2109.73% 729.02%
Note to Schedule:
This Schedule is presented to illustrate the requirement of GASB 68.
The City implemented GASB No.68 for the fiscal year ended September 30, 2015.
This Schedule will present 10 years as information becomes available.
153
Actuarially determined contribution
Contributions made in relation to the actuarially determined
contribution
Contribution deficiency (excess)
Covered -payroll
Contributions as a percentage of
covered -payroll
City of Miami, Florida
Schedule of Contributions - FIPO
September 30, 2018
(Unaudited)
FY 2018 FY 2017
$ 56,999,866
56,999,866
$ 148,949,683
38.27%
$ 53,264,009
53,264,009
$ 141,497,840
37.64%
FY 2016
$ 48,672,615
48,672,615
$
$ 133,083,231
36.57%
FY 2015
FY 2014
48,616,677 $ 47,305,679
48,616,677 47.305,679
$
$ -
$ 106.278.378 $ 93,705,765
45.74%
50.48%
Actuarially determined contribution
Contributions made in relation to the actuarially determined
contribution
Contribution deficiency (excess)
Covered -payroll
Contributions as a percentage of
covered -payroll
The following actuarial methods and assumptions were used to determine
in the Schedule of Contributions above:
Valuation date:
Actuarial cost method:
Asset valuation method:
Actuarial Assumptions:
Interest rates
Inflation
Projected salary increases
Expense and or Contingency Loading
FY 2013 FY 2012
$ 45,412,248
$ 47,418,316
45,412,248 47,418,316
$ 85,222,842
53.29%
$ 82,205,838
57.68%
contribution rates for Fiscal Year 2018, as reported
October 1, 2017
Entry Age Method
20% Write -Up Method: Expected actuarial value of
assets, adjusted by 20% of the difference between
expected actuarial value and actual market value
(net of pending transfers to the COLA Fund)
7.34% net of investment expenses
3.25%
1.5% for promotions and other increase plus salary
merit
$2,128,469
FY 2011
FY 2010
FY 2009
$ 47,156,797 $ 59,025,379 $ 36,993,395
47,156,797
$ -
$ 82,164,617
57.39%
59,025,379 36,993,395
$ -
$ 80,152,355 $ 122,212,346
73.64%
30.27%
City of Miami, Florida
Schedule of Contributions - GESE
September 30, 2018
(Unaudited)
2018 FY 2017 FY 2016 FY 2015 FY 2014
Actuarially determined contribution $ 40,879,285 $ 34,355,719 $ 32,881,500 $ 33,036,318 $ 30,710,096
Contributions made in relation to the actuarially determined
contribution 40,879,285 34,355,719 32,881,500 33,036,318 30,710,096
Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered -payroll $ 111,127,482 $ 97,373,080 $ 81,069,095 $ 71,924,747 $ 66,370,246
Contributions as a percentage of
covered -payroll 36.79% 35.28% 40.56% 45.93% 46.27%
FY 2013 FY 2012 FY 2011 FY 2010 FY 2009
Actuarially determined contribution $ 25,568,193 $ 25,784,849 $ 20,420,995 $ 24,037,093 $ 23,191,828
Contributions made in relation to the actuarially determined
contribution 25,568,193 25,784,849 20,420,995 $ 24,037,093 23,191,828
Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered -payroll $ 64,391,195 $ 65,509,421 $ 70,825,712 $ 92,746,558 $ 93,703,886
Contributions as a percentage of
covered -payroll 39.71% 39.36% 28.83% 25.92% 24.75%
The following actuarial methods and assumptions were used to determine contribution rates for Fiscal Year 2018, as reported
in the Schedule of Contributions above:
Valuation date:
Actuarial cost method:
Amortization method:
Remaining amortization period:
Asset valuation method:
Actuarial Assumptions:
Investment rate of return
Projected salary increases
Payroll Growth
Includes inflation at
October 1, 2016
Entry Age Normal
Level percent, closed
6 to 20 years
5-Year Smoothed Market
7.6%
4% to 8.75%
3.0%
3.5%
City of Miami, Florida
Schedule of Contributions - GESE Excess
September 30, 2018
(Unaudited)
2018 FY 2017 FY 2016 FY 2015 FY 2014
Actuarially determined contribution $ 694,643 $ 850,429 $ 914,859 $ 947,666 $ 722,999
Contributions made in relation to the actuarially determined
contribution 587,959 674,572 680,534 648,302 561,805
Contribution deficiency (excess) $ 106,684 $ 175,857 $ 234,325 $ 299,364 $ 161,194
Covered -payroll $ 111,127,482 $ 97,373,080 $ 81,069,095 $ 71,924,747 $ 66,370,246
Contributions as a percentage of
covered -payroll 0.53% 0.69% 0.84% 0.90% 0.85%
FY 2013 FY 2012 FY 2011 FY 2010 FY 2009
Actuarially determined contribution $ 665,659 $ 606,589 $ 585,357 $ 625,539 $ 566,046
Contributions made in relation to the actuarially determined
contribution 523,398 514,908 406,243 339,602 464,325
rn Contribution deficiency (excess) $ 142,261 $ 91,681 $ 179,114 $ 285,937 $ 101,721
Covered -payroll $ 64,391,195 $ 65,509,421 $ 70,825,712 $ 92,746,558 $ 93,703,886
Contributions as a percentage of
covered -payroll 0.81% 0.79% 0.57% 0.37% 0.50%
The following actuarial methods and assumptions were used to determine contribution rates for Fiscal Year 2018, as
reported in the Schedule of Contributions above:
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
October 1, 2016
Entry Age Normal
Level dollar amounts, closed
14 years
Not Applicable, the plan has no assets for investment
7.60%
4% to 8.75%
3.5%
City of Miami, Florida
Schedule of Contributions - GESE Staff
September 30, 2018
(Unaudited)
2018 FY 2017 FY 2016 FY 2015 FY 2014
Actuarially determined contribution $ 233,242 $ 247,449 $ 269,054 $ 291,087 $ 291,968
Contributions made in relation to the actuarially determined
contribution 233,242 247,449 269,054 291,087 291,968
Contribution deficiency (excess) $ $ - $ $ $ -
Covered -payroll $ 280,425 $ 225,148 $ 172,459 $ 164,547 $ 298,958
Contributions as a percentage of
covered -payroll 83.17% 109.91% 156.01% 176.90% 97.66%
FY 2013 FY 2012 FY 2011 FY 2010 FY 2009
Actuarially determined contribution $ 219,774 $ 226,793 $ 164,490 $ 132,542 $ 159,837
Contributions made in relation to the actuarially determined
contribution 219,774 226,793 164,490 133,487 159,837
Contribution deficiency (excess) $ - $ - $ - $ (945) $
Covered -payroll $ 354,937 $ 735,056 $ 842,955 $ 738,898 $ 632,259
Contributions as a percentage of
covered -payroll 61.92% 30.85% 19.51% 18.07% 25.28%
The following actuarial methods and assumptions were used to determine contribution rates for Fiscal Year 2018, as
reported in the Schedule of Contributions above:
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
October 1, 2016
Entry Age Normal
Level dollar amounts, closed
1 to 20 years
3 year smoothed market
7.60%
6.00%
3.50%
('ity of Miami, Florida
Schedule of Contributions - EORT
September 30, 2018
(Unaudited)
2018 FY 2017 FY 2016 FY 2015 FY 2014
Actuarially determined contribution $ 463,386 $ 406,911 $ 469,450 $ 390,314 $ 570,348
Contributions made in relation to the actuarially determined
contribution 553,471 406,911 860,089 551,222
Contribution deficiency (excess) $ (90,085) $ - $ (390,639) $ (160,908) $ 570,348
Covered -payroll $ $ - $ 100,788 $ 103,194 $ 298,788
Contributions as a percentage of
covered -payroll N/A N/A 853.36% 534.16% 0.00%
FY 2013
FY 2012 FY 2011
Actuarially determined contribution $ 488,713 $ 566,252 $ 431,995
Contributions made in relation to the actuarially determined
contribution 1,054,965 432,170 962,677
Contribution deficiency (excess) $ (566,252) $ 134,082 $ (530,682)
Covered -payroll $ 335,952 $ 209,260 $ 209,260
OD
Contributions as a percentage of
covered -payroll 314.02% 206.52% 460.04%
Actuarial valuation reports prior to 2010 are not available.
The following actuarial methods and assumptions were used to determine contribution rates for Fiscal Year 2018, as
reported in the Schedule of Contributions above:
Valuation date: January 1, 2018
Actuarial cost method: Entry Age Normal
Amortization method: Level dollar, closed
Remaining amortization period: 5 to 9 years
Equivalent single amortization period: 8 years
Asset valuation method: Market Value
Actuarial Assumptions:
Investment rate of return 3.75%
Projected salary increases None
Payroll Growth None
Includes inflation at 2.50%
Cost of living adjustments None
Year Ended
September 30,
2018
2017
2016
2015
City of Miami, Florida
Schedule of Investment Returns
September 30, 2018
(Unaudited)
Annual money -weighted rate of return, net of investment expense
Firefighters
and
Police
(FIPO)
9.58%
9.22%
9.70%
1.84%
General and
Sanitation
Employees
(GESE)
13.20%
10.60%
0.23%
11.20%
General and
Sanitation
Employees
Excess Benefit
(GESE Excess Plan)
Not applicable (a)
Not applicable (a)
Not applicable (a)
Not applicable (a)
Note to Schedule:
(a) The GESE Excess Plan has no assets.
This Schedule is presented to illustrate the requirement of GASB 68.
This Schedule will present 10 years as information becomes available.
General and
Sanitation
Employees
Staff Trust Plan
(GESE Staff Plan)
12.90%
11.80%
-0.40%
12.10%
Elected
Officers
Retirement
Trust
(EORT)
0.68%
0.81%
0.65%
0.93%
NON -MAJOR
GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for special revenues that are legally restricted
to expenditures for specified purposes.
Community Redevelopment Agency (OMNI CRA)
To account for revenues and expenditures to be used for general operations in the defined
OMNI Community Redevelopment Area.
Community Redevelopment Agency (Midtown CRA)
To account for revenues and expenditures to be used for special operations in the defined
Midtown Community Redevelopment Area.
Community Redevelopment Agency (SEOPW)
To account for revenues and expenditures to be used for special operations in the defined
Southeast" Overtown Park West Community Redevelopment Area.
Homeless Program
To account for the activities of the City's homeless program.
Community Development
To account for the proceeds from the Federal government under the U.S. Department of
Housing and Urban Development.
Housing Choice 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.
160
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.
Fire Rescue Services
To account for the grants revenues and expenditures which supplement the City's emergency
Fire Rescue operations
161
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.
Miami Ballpark Parking Facility
To account for the operations of the Miami Ballpark Parking Facility.
Liberty City Revitalization Trust
To account for the revitalization efforts for the redevelopment of the Liberty City Community
Revitalization District.
Virginia Key Beach Park Trust
To account for the activities to preserve, restore, and maintain the Historic Virginia Key
Beach Park.
Solid Waste Recycling Trust
To account for funds received through the recycling program that are utilized to pay for
scholarships annually to educational institutions for Solid Waste employees and for the
children or legal dependents of Solid Waste employees.
Bayront/Riverfront Land Acquisition Rouse Trust
To account for the acquisitiion of real property adjacent to the Miami River and Biscayne
Bay in order to provide public access and public enjoyment of those waterbodies.
162
DEFT 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.
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.
Special Obligations Bonds
To account for monies used for the payment of principal, interest, and other costs related to
various special obligation and revenue bonds and loans.
163
CAPITAL PROJECTS FUNDS
Capital Projects Funds are used to account for the acquisition and construction of major
capital facilities.
SEOPW Community Redevelopment Agency
To account for the acquisition or construction of major capital facilities for community
redevelopment in the defined Community Redevelopment Area.
Transportation and Transit
To account for expenditures for the improvement to infrastructure that enhances
transportation options, improves safety, and increases mobility within city limits.
General Obligation Bond Projects (G.O.B.)
To account for the receipt and disbursement of bond proceeds from general obligation
debt to be used for constructions and/or acquisition activities for the City.
Special Obligation Bond Projects (S.O.B.)
To account for the receipt and disbursement of bond proceeds from special obligation debt
and loan agreements to be used for constructions and/or acquisition activities for the City.
164
Assets
Pooled Cash, Cash Equivalents, and Investments
Restricted Cash, Cash Equivalents, and Investments
Receivables (Net of Allowance for Uncollectibles):
Loans Receivable
Accounts Receivable
Property Tax
Due From Other Governments
Accrued Interest
Prepaids
Other Assets
Total Assets
Liabilities, Fund Balances and Deferred Inflows of
Resources
City of Miami, Florida
Combining Balance Sheet
Non -Major Governmental Funds
September 30, 2018
Housing
Homeless Community Choice
Omni CRA SEOPW CRA Program Development Vouchers
$ 6,479,869 $ 25,043,157 $
- $ 15,376,083 $ 90.239
1,794
270,000 655
405,383 145,934 2,040,171
39,829 81,220 - 7,511
5,020 312,409 -
$ 6,524,718 $ 26,112,169
(26)
4,221
$ 145,934 $ 17,426,214 $ 94,434
Liabilities:
Accounts Payable and Accrued Liaibilities 207,856 2,058,561 106,889 1,679,697 7,721
Other Liabilities - 4,224
Due to Other Funds 71.582
Due to Other Governments - - 1,619,490
Deposits - 14,961 - 87,682 _
Total Liabilities 207,856 2,073,522 178,471 3,391,093 7,721
Deferred Inflows of Resources
Unavailable Revenue - Other
Total Deferred Inflows of Resources
Fund Balances (Deficit):
Non -Spendable Fund Balance
Non Spendable
Spendable Fund Balance
Restricted
Committed
Assigned
Unassigned (deficit)
6,316,862 24,038,647
(32,537)
4,221
14,035,021 82,492
Total Fund Balances (Deficit) 6,316,862 24,038,647 (32,537) 14,035,121 86,713
Total Liabilities, Deferred Inflows of Resources and
Fund Balances $ 6,524,718 $ 26,112,169 $ 145,934 $ 17,426,214 $ 94,434
165
City of Miami, Florida
Combining Balance Sheet
Non -Major Governmental Funds
September 30, 2018
Special Revenue
Funds
SHIP
Economic
Development Parks &
Convention & Planning Recreation
Center Services NET Offices Services
Assets
Pooled Cash, Cash Equivalents, and Investments $ 1,696,937 $ 368 $ 16,626,848 $ 1,726,786 $ 3,062,056
Restricted Cash, Cash Equivalents, and Investments
Receivables (Net of Allowance for Uncollectibles):
Loans Receivable - -
Accounts Receivable 13,000 20,452 228
Property Tax -
Due From Other Governments 8,464
Accrued Interest 1,429
Prepaids
Other Assets
Total Assets $ 1,698,366 $ 368 $ 16,639,848 $ 1,747,238 $ 3,070,748
Liabilities, Fund Balances and Deferred Inflows of
Resources
Liabilities:
Accounts Payable and Accrued Liaibilities
Other Liabilities
Due to Other Funds
Due to Other Governments
Deposits
Total Liabilities
Deferred Inflows of Resources
Unavailable Revenue - Other
Total Deferred Inflows of Resources
Fund Balances (Deficit):
Non -Spendable Fund Balance
Non Spendable
Spendable Fund Balance
Restricted
Committed
Assigned
Unassigned (deficit)
Total Fund Balances (Deficit)
Total Liabilities, Deferred Inflows of Resources and
Fund Balances
18,285 605 111,272 9,228 48,256
324
18.285 605 111,272 9,552 48,256
1.680,081
(237)
2,824,486 84.472 1,538,772
11,839,690 1,641,058 1,044,813
1,864,400 12,156 438,907
1,680,081
$ 1,698,366
(237) 16,528,576 1,737,686 3,022,492
$ 368 $ 16,639,848 $ 1,747,238 $ 3,070,748
166
City of Miami, Florida
Combining Balance Sheet
Non -Major Governmental Funds
September 30, 2018
Special Revenue
Funds
Law
Enforcement Public Works City Clerk Fire Rescue
Police Services Trust Services Services Services
Assets
Pooled Cash, Cash Equivalents, and Investments $ 6,921,528 $ 1,126,118 $ 12,574,869 $ 1,204,976 $ 1,720,060
Restricted Cash, Cash Equivalents, and Investments - - - - -
Receivables (Net of Allowance for Uncollectibles):
Loans Receivable - - -
Accounts Receivable 861,518 13,680 80
Property Tax -
Due From Other Govemments 1,252,368 - - 4,056,134
Accrued Interest 6,688 3,119 485 143
Prepaids 419 21,897
Other Assets -
Total Assets $ 9,042,521 $ 1,129,237 $ 12,589,034 $ 1,204,976 $ 5,798,314
Liabilities, Fund Balances and Deferred Inflows of
Resources
Liabilities:
Accounts Payable and Accrued Liaibilities 620,215 39.565 1,069,871 1,128 1,132,110
Other Liabilities - -
Due to Other Funds 694,385 2,084,230
Due to Other Governments -
Deposits 112,413
Total Liabilities 1,314,600 151,978 1.069.871 1.128 3,216,340
Deferred Inflows of Resources
Unavailable Revenue - Other
Total Deferred Inflows of Resources
317,000
317,000
Fund Balances (Deficit):
Non -Spendable Fund Balance
Non Spendable 419 21,897
Spendable Fund Balance
Restricted 3,807,517 977,259 589,254 - 2,560,077
Committed 3,602,985 - 10,929,909 1,203,848 -
Assigned
Unassigned (deficit)
Total Fund Balances (Deficit) 7,410,921 977,259 11,519,163 1,203,848 2,581,974
Total Liabilities, Deferred Inflows of Resources and
Fund Balances $ 9,042,521 $ 1,129,237 $ 12,589,034 $ 1,204,976 $ 5,798,314
167
City of Miami, Florida
Combining Balance Sheet
Non -Major Governmental Funds
September 30, 2018
Special Revenue
Funds
Miami
General Departmental Ballpark Liberty City
Special Improvement Transportation Parking Revitalization
Revenues Initiatives & Transit Facilities Trust
Assets
Pooled Cash, Cash Equivalents, and Investments $ 1,040,663 $ 10,507,349 $ 1,669,503 $ 2,402,084 $ 235,075
Restricted Cash, Cash Equivalents, and Investments -
Receivables (Net of Allowance for Uncollectibles):
Loans Receivable -
Accounts Receivable 298,564 2,021,798
Property Tax -
Due From Other Governments 62,316 189,200 5,689,916 -
Accrued Interest 19,494 71
Prepaids
Other Assets
Total Assets $ 1,102,979 $ 10,995,113 $ 7,378,913 $ 4,423,882 $ 235,146
Liabilities, Fund Balances and Deferred Inflows of
Resources
Liabilities:
Accounts Payable and Accrued Liaibilities 254,648 327,031 1,062,503 303,135 1,547
Other Liabilities
Due to Other Funds
Due to Other Governments
Deposits
Total Liabilities 254,648 327,031 1,062,503 303,135 1,547
Deferred Inflows of Resources
Unavailable Revenue - Other
Total Deferred Inflows of Resources
2,600,000
2,600,000
Fund Balances (Deficit):
Non -Spendable Fund Balance
Non Spendable
Spendable Fund Balance
Restricted 848.431 5,843,190 3,716.410 4.120,747 233,599
Committed 4,824,892
Assigned
Unassigned (deficit)
Total Fund Balances (Deficit) 848,331 10,668,082 3,716,410 4,120,747 233,599
Total Liabilities, Deferred Inflows of Resources and
Fund Balances $ 1,102,979 $ 10,995,113 $ 7,378,913 $ 4,423,882 $ 235,146
168
Assets
Pooled Cash, Cash Equivalents, and Investments
Restricted Cash, Cash Equivalents, and Investments
Receivables (Net of Allowance for Uncollectibles):
Loans Receivable
Accounts Receivable
Property Tax
Due From Other Governments
Accrued Interest
Prepaids
Other Assets
Total Assets
Liabilities, Fund Balances and Deferred Inflows of
Resources
Liabilities:
Accounts Payable and Accrued Liaibilities
Other Liabilities
Due to Other Funds
Due to Other Governments
Deposits
Total Liabilities
Deferred Inflows of Resources
Unavailable Revenue - Other
Total Deferred Inflows of Resources
Fund Balances (Deficit):
Non -Spendable Fund Balance
Non Spendable
Spendable Fund Balance
Restricted
Committed
Assigned
Unassigned (deficit)
Total Fund Balances (Deficit)
Total Liabilities, Deferred Inflows of Resources and
Fund Balances
City of Miami, Florida
Combining Balance Sheet
Non -Major Governmental Funds
September 30, 2018
Special Revenue
Funds
Virginia Key Bayfront Park
Beach Park Solid Waste Land Acquisition Total Special
Trust RecyclingTrust Trust Fund Revenue
$ 124,619 $ 1,109,248 $ 1,420,000
26,127
7.350
114 1,558
$ 158,210 $ 1,110,806 $ 1,420,000
83,308
83.308
74,902
1,000,000
110,806 1,420,000
74,902 1,110,806 1,420,000
$ 158,210 $ 1,110,806 $ 1,420,000
Debt Service
Funds
General
Obligation
Bonds
$ 112,158,435 $
26,127 9,364,475
1,794
3,499,975
13,857,236
161,635
26,537
317,429
61,362
216,844
$ 130,049,168 $ 9,642,681
9,143,431
4,224
2,850,197
1,619,490
215,380
13,832,722
2,917,000
2,917,000
1,026,537
73,372,219
36,618,001
2,315,463
(32,774)
113,299,446
216,844
216,844
9,425,837
9,425,837
$ 130,049,168 $ 9,642,681
169
City of Miami, Florida
Combining Balance Sheet
Non -Major Governmental Funds
September 30, 2018
Debt Service Capital Projects
Funds Funds
CRA Other
Special Community
Obligation Special Obligation Total Debt Redevelopment Transportation
Bonds Bonds Service Agency & Transit
Assets
Pooled Cash, Cash Equivalents, and Investments $ - $ - $ - $ - $ -
Restricted Cash, Cash Equivalents, and Investments 2,555,642 31,809,983 43,730,100 24,804,693 32,463,411
Receivables (Net of Allowance for Uncollectibles):
Loans Receivable
Accounts Receivable 333,333 394,695
Property Tax 216,844
Due From Other Governments
Accrued Interest
Prepaids
Other Assets
Total Assets $ 2,555,642 $ 32,143,316 $ 44,341,639 $ 24,804,693 $ 32,463,411
Liabilities, Fund Balances and Deferred Inflows of
Resources
Liabilities:
Accounts Payable and Accrued Liaibilities
Other Liabilities
Due to Other Funds
Due to Other Governments
Deposits
Total Liabilities
Deferred Inflows of Resources
Unavailable Revenue - Other
Total Deferred Inflows of Resources
Fund Balances (Deficit):
Non -Spendable Fund Balance
Non Spendable
Spendable Fund Balance
Restricted
Committed
Assigned
Unassigned (deficit)
Total Fund Balances (Deficit)
Total Liabilities, Deferred Inflows of Resources and
Fund Balances
38,899 38,899 1,150,625
38,899 38,899 1,150,625
2,555,642
216,844
216,844
32,104,417 44,085,896
24,804,693
31,312,786
2,555,642 32,104,417 44,085,896 24,804,693 31,312,786
$ 2,555,642 $ 32,143,316 $ 44,341,639 $ 24,804,693 $ 32,463,411
170
City of Miami, Florida
Combining Balance Sheet
Non -Major Governmental Funds
September 30, 2018
Capital Projects
Funds
Total Non -
Special General Major
Obligation Obligation Bonds Total Capital Governmental
Bonds Projects Projects Projects Funds
Assets
Pooled Cash, Cash Equivalents, and Investments $ - $ $ - $ 112,158,435
Restricted Cash, Cash Equivalents, and Investments 13,118,842 1,499,482 71,886,428 115,642,655
Receivables (Net of Allowance for Uncollectibles):
Loans Receivable 1,794
Accounts Receivable 3,894,670
Property Tax 216,844
Due From Other Governments 13,857,236
Accrued Interest 30,104 21,231 51,335 212,970
Prepaids 26,537
Other Assets 317,429
Total Assets $ 13,148,946 $ 1,520,713 $ 71,937,763 $ 246,328,570
Liabilities, Fund Balances and Deferred Inflows of
Resources
Liabilities:
Accounts Payable and Accrued Liaibilities
Other Liabilities
Due to Other Funds
Due to Other Governments
Deposits
Total Liabilities
Deferred Inflows of Resources
Unavailable Revenue - Other
Total Deferred Inflows of Resources
4,814,687 5,965,312
970,139 970,139
5,784,826
15,147,642
4,224
3,820,336
1,619,490
215,380
6,935,451 20,807,072
3,133,844
3,133,844
Fund Balances (Deficit):
Non -Spendable Fund Balance
Non Spendable 1,026,537
Spendable Fund Balance
Restricted 7,364,120 1,520,713 65,002,312 182,460,427
Committed 36,618,001
Assigned 2,315,463
Unassigned (deficit) (32,774)
Total Fund Balances (Deficit) 7,364,120 1,520,713 65,002,312 222,387,654
Total Liabilities, Deferred Inflows of Resources and
Fund Balances $ 13,148,946 $ 1,520,713 $ 71,937,763 $ 246,328,570
City of Miami, Florida
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non -Major Governmental Funds
For The Fiscal Year Ended September 30, 2018
Special Revenue
Funds
Homeless Community
Omni CRA Midtown CRA SEOPW CRA Program Development
Revenues
Property Taxes $ 18,721,974 $ 6,628,202 $ 18,612,071 $ - $ -
Licenses and Permits - 300
Fines and Forfeitures - - - -
Intergovernmental Revenues 8,333 771,462 1,756,013 25,342,832
Charges for Services - - - 439,474
Investment Earnings (Loss) 248,783 735,712 20,638
Other 2,091,811 2,094,372 -
Total Revenues 21,070,901 6,628,202 22,213,617 1,756,013 25,803,244
Expenditures
Current Operating:
General Government 2,201,368 69,286
Planning and Development -
Community Development 23,255,018
Community Redevelpment Areas 12,912,701 6,563,920 13,552,042
Public Works
Public Safety
Public Facilities
Parks and Recreation
Debt Service:
Principal
Interest and Other Charges - -
Capital Outlay - 677,649 - 2,844 564
Total Expenditures 12,912,701 6,563,920 14,229,691 2,201,368 26,168,868
Excess (Deficiency) of Revenues
Over (Under) Expenditures 8,158,200 64,282 7,983,926 (445,355) (365,624)
Other Financing Sources (Uses)
Transfers In 64,282 894,000
Transfers Out (5,460,786) (64,282) (8,538,484)
Proceeds Received from Refunding
Payment To Escrow Agent For Refunding
Issuance of Debt
Total Other Financing Sources (Uses) (5,396,504) (64,282) (8,538.484) 894,000
Net Changes in Fund Balances 2,761,696 (554,558) (445,355) 528,376
Fund Balances (Deficit) - Beginning 3,555,166 24,593,205 412,818 13,506,745
Fund Balances (Deficit) - Ending $ 6,316,862 $ - $ 24,038,647 $ (32,537) $ 14,035,121
City of Miami, Florida
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non -Major Governmental Funds
For The Fiscal Year Ended September 30, 2018
Special Revenue
Funds
Economic
Housing Development
Choice Convention & Planning
Vouchers SHIP Center Services NET Offices
Revenues
Property Taxes $ $ - $ - $ - $ -
Licenses and Permits - 211.478 30
Fines and Forfeitures - 2,800
Intergovernmental Revenues 2,194,827 1,396,873 -
Charges for Services 2,641,764 83,532
Investment Earnings (Loss) 56 5,640 (2,796) (15,294)
Other 11,035 283,420
Total Revenues 2,205,918 1,685,933 2,850,446 71,068
Expenditures
Current Operating:
General Government
Planning and Development - 418,619
Community Development 2,336,028 1,094,798
Community Redevelpment Areas -
Public Works 49,226
Public Safety
Public Facilities
Parks and Recreation
Debt Service:
Principal
Interest and Other Charges -
Capital Outlay
Total Expenditures 2,336,028 1,094,798 467,845
Excess (Deficiency) of Revenues
Over (Under) Expenditures (130,110) 591,135 2,382,601 71,068
Other Financing Sources (Uses)
Transfers In
Transfers Out
Proceeds Received from Refunding
Payment To Escrow Agent For Refunding
Issuance of Debt
Total Other Financing Sources (Uses)
- (1,118,999) (3,154,000)
- (1,118,999) (3,154,000)
Net Changes in Fund Balances (130,110) 591,135 (1,118,999) (771,399) 71.068
Fund Balances (Deficit) - Beginning 216,823 1,088,946 1,118,762 17,299,975 1,666,618
Fund Balances (Deficit) - Ending $ 86,713 $ 1,680,081 $ (237) $ 16,528,576 $ 1,737,686
City of Miami, Florida
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non -Major Governmental Funds
For The Fiscal Year Ended September 30, 2018
Special Revenue
Funds
Parks & Law
Recreation Enforcement Public Works City Clerk
Services Police Services Trust Services Services
Revenues
Property Taxes $ - $ - $ - $ - $
Licenses and Permits - 231.359
Fines and Forfeitures - 184,002
Intergovernmental Revenues 555,695 5,850,771 -
Charges for Services 1,977 128,462 6,718,247 238,441
Investment Earnings (Loss) - 51,903 23,163
Other 8,513 158,447
Total Revenues 566,185 6,189,583 207,165 6,949,606 238,441
Expenditures
Current Operating:
General Government 83,303
Planning and Development
Community Development
Community Redevelpment Areas
Public Works - 3,105,517
Public Safety 10,325,785 596,058
Public Facilities - -
Parks and Recreation 820,741
Debt Service:
Principal
Interest and Other Charges - - Capital Outlay 15,788 177,674 27,639 45,833 1,500
Total Expenditures 836,529 10,503,459 623,697 3,151,350 84,803
Excess (Deficiency) of Revenues
Over (Under) Expenditures (270,344) (4,313,876) (416,532) 3,798,256 153,638
Other Financing Sources (Uses)
Transfers In
Transfers Out
Proceeds Received from Refunding
Payment To Escrow Agent For Refunding
Issuance of Debt
Total Other Financing Sources (Uses)
Net Changes in Fund Balances
Fund Balances (Deficit) - Beginning
Fund Balances (Deficit) - Ending
60,000 6,007,000
(53,800)
- 1,465,000 48,000
- (5,030,155)
6,200 6,007,000
- (3,565,155) 48,000
(264,144) 1,693,124 (416,532) 233,101 201,638
3,286,636 5,717,797 1,393,791 11,286,062 1,002,210
$ 3,022,492 $ 7,410,921 $ 977,259 $ 11,519,163 $ 1,203.848
City of Miami, Florida
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non -Major Governmental Funds
For The Fiscal Year Ended September 30, 2018
Special Revenue
Funds
Miami
General Departmental Ballpark
Fire Rescue Special Improvement Transportation Parking
Services Revenues Initiatives & Transit Facilities
Revenues
Property Taxes $ - $ - $ - $ - $
Licenses and Permits -
Fines and Forfeitures - 1,564,335 -
Intergovernmental Revenues 6,816,770 305,360 1,647,505 17,844,619 50,000
Charges for Services 13,045 - 5,250,880
Investment Earnings (Loss) 1,314 80,633 13,206
Other 57,665 584,246 10,000
Total Revenues 6,888,794 889,606 3,302,473 17,857,825 5,300,880
Expenditures
Current Operating:
General Government 336,224 5,161,142 19,528
Planning and Development 627,869
Community Development
Community Redevelpment Areas - -
Public Works - 412,903 21,915 10,157,593
Public Safety 7,180,851 4,450
Public Facilities 2,143,279 2,342,550
Parks and Recreation 187,833
Debt Service:
Principal
Interest and Other Charges - Capital Outlay 407,319 20,965 264,620
Total Expenditures 7,588,170 770,092 8,411,108 10,177,121 2,342,550
Excess (Deficiency) of Revenues
Over (Under) Expenditures (699,376) 119,514 (5,108,635) 7,680,704 2,958,330
Other Financing Sources (Uses)
Transfers In 607.000 31,000 6,561,000
Transfers Out (355,021) (9,846,000) (2,007,000)
Proceeds Received from Refunding
Payment To Escrow Agent For Refunding
Issuance of Debt
Total Other Financing Sources (Uses) 607,000 31,000 6,205,979 (9,846,000) (2,007,000)
Net Changes in Fund Balances (92,376) 150,514 1,097,344 (2,165,296) 951,330
Fund Balances (Deficit) - Beginning 2,674,350 697,817 9,570,738 5,881,706 3,169,417
Fund Balances (Deficit) - Ending $ 2,581,974 $ 848,331 $ 10,668,082 $ 3,716,410 $ 4,120,747
City of Miami, Florida
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non -Major Governmental Funds
For The Fiscal Year Ended September 30, 2018
Special Revenue
Funds
Bayfront Park
Liberty City Virginia Key Land
Revitalization Beach Park Solid Waste Acquisition Total Special
Trust Trust RecyclingTrust Trust Fund Revenue
Revenues
Property Taxes $ - $ - $ - $ $ 43,962,247
Licenses and Permits 443,167
Fines and Forfeitures - 1,751,137
Intergovernmental Revenues 599,000 313,350 65,453,410
Charges for Services - 441,981 - 15,957,803
Investment Earnings (Loss) - 4,303 17,184 1,184,445
Other 30,000 192,024 5,521,533
Total Revenues 629,000 951,658 17,184 134,273,742
Expenditures
Current Operating:
General Government 7,870,851
Planning and Development 1,046,488
Community Development - 26,685,844
Community Redevelpment Areas 726,725 - 33,755,388
Public Works 39,284 13,786,438
Public Safety 18,107,144
Public Facilities - 4,485,829
Parks and Recreation 889,791 1,898,365
Debt Service:
Principal
Interest and Other Charges Capital Outlay - 10,078 - 4,493,629
Total Expenditures 726,725 899,869 39,284 112,129,976
Excess (Deficiency) of Revenues
Over (Under) Expenditures (97,725) 51,789 (22,100) 22,143,766
Other Financing Sources (Uses)
Transfers In 1,420,000 17,157,282
Transfers Out (35,628,527)
Proceeds Received from Refunding
Payment To Escrow Agent For Refunding -
Issuance of Debt -
Total Other Financing Sources (Uses) 1,420,000 (18,471,245)
Net Changes in Fund Balances (97,725) 51,789 (22,100) 1,420,000 3,672,521
Fund Balances (Deficit) - Beginning 331,324 23,113 1,132,906 109,626,925
Fund Balances (Deficit) - Ending $ 233,599 $ 74,902 $ 1,110,806 $ 1,420,000 $ 113,299,446
176
City of Miami, Florida
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non -Major Governmental Funds
For The Fiscal Year Ended September 30, 2018
Debt Service Capital Projects
Funds Funds
CRA Other
General Special Special Community
Obligation Obligation Obligation Total Debt Redevelopment
Bonds Bonds Bonds Service Agency
Revenues
Property Taxes $ 28,017.811 $ - $ $ 28,017,811 $
Licenses and Permits -
Fines and Forfeitures - -
Intergovernmental Revenues 4,000,000 4,000,000
Charges for Services -
Investment Earnings (Loss) 32,876 3,157 130,351 166,384 127,846
Other - - -
Total Revenues 28,050,687 3,157 4,130,351 32,184,195 127,846
Expenditures
Current Operating:
General Government 9,557 374,893 384.450
Planning and Development -
Community Development
Community Redevelpment Areas 217,515 217,515
Public Works
Public Safety
Public Facilities
Parks and Recreation
Debt Service:
Principal 20,255,000 2,850,000 30,494,962 53,599,962
Interest and Other Charges 3,941,109 2,364,661 28,993,375 35,299,145
Capital Outlay - - - 9,378,381
Total Expenditures 24,205,666 5,432,176 59,863,230 89,501,072 9,378,381
Excess (Deficiency) of Revenues
Over (Under) Expenditures 3,845,021 (5,429,019) (55,732,879) (57,316,877) (9,250,535)
Other Financing Sources (Uses)
Transfers In 5,214,661 43,805,000 49,019,661
Transfers Out
Proceeds Received from Refunding - 83,045,000 83,045,000
Payment To Escrow Agent For Refunding - (74,105,000) (74,105,000)
Issuance of Debt 2,770,000 2,770,000 22,230,000
Total Other Financing Sources (Uses) 7,984,661 52,745,000 60,729,661 22,230,000
Net Changes in Fund Balances 3,845,021 2,555,642 (2,987,879) 3,412,784 12,979,465
Fund Balances (Deficit) - Beginning 5,580,816 35,092,296 40,673,112 11,825,228
Fund Balances (Deficit) - Ending $ 9,425,837 $ 2,555,642 $ 32,104,417 $ 44,085,896 $ 24,804,693
177
City of Miami, Florida
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non -Major Governmental Funds
For The Fiscal Year Ended September 30, 2018
Capital Projects
Funds
Total Non -
Special General Major
Transportation Obligation Obligation Total Capital Governmental
& Transit Bonds Projects Bonds Projects Projects Funds
Revenues
Property Taxes $ $ - $ $ $ 71,980,058
Licenses and Permits 443,167
Fines and Forfeitures 1,751,137
Intergovernmental Revenues 69,453,410
Charges for Services - - 15,957,803
Investment Earnings (Loss) 862,850 165,895 22,499 1,179,090 2,529,919
Other - - 5,521,533
Total Revenues 862,850 165,895 22,499 1,179,090 167,637,027
Expenditures
Current Operating:
General Government 23,649 2.568.307 2,591,956 10,847,257
Planning and Development 2,441 - 2,441 1,048,929
Community Development - 26,685,844
Community Redevelpment Areas 33,972,903
Public Works 364,836 - 364,836 14,151,274
Public Safety 1,005 1,005 18,108,149
Public Facilities 2,230 2,230 4,488,059
Parks and Recreation 1,898,365
Debt Service:
Principal 53,599,962
Interest and Other Charges - - 35,299,145
Capital Outlay 3,681,246 5,974,375 19,034,002 23,527,631
Total Expenditures 4,072,172 8,545,917 21,996,470 223,627,518
Excess (Deficiency) of Revenues
Over (Under) Expenditures (3,209,322) (8,380,022) 22,499 (20,817,380) (55,990,491)
Other Financing Sources (Uses)
Transfers In
Transfers Out
Proceeds Received from Refunding
Payment To Escrow Agent For Refunding
Issuance of Debt
Total Other Financing Sources (Uses)
3,710,000
3,710,000
3,710,000 69,886,943
(35,628,527)
83,045,000
(74,105,000)
22,230,000 25,000,000
25,940,000 68,198,416
Net Changes in Fund Balances 500,678 (8,380,022) 22,499 5,122,620 12,207,925
Fund Balances (Deficit) - Beginning 30,812.108 15,744,142 1,498,214 59,879,692 210,179,729
Fund Balances (Deficit) - Ending $ 31,312,786 $ 7,364,120 $ 1,520,713 $ 65,002,312 $ 222,387,654
178
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - Omni CRA
For The Fiscal Year Ended September 30, 2018
Budgeted Amounts
Original
Revenues:
Variance with
Final Actual Amounts Final Budget
Property Taxes $ 18,325,101 $ 18,325,101 $ 18,721,974 $ 396,873
Intergovernmental Revenues 8,333 8,333
Investment Earnings (Loss) 248,783 248,783
Other
Total Revenues
35,062,771
53,387,872
35,062,771 2,091,811 (32,970,960)
53,387,872 21,070,901 (32,316,971)
Community Redevelpment Areas 37,702,835 37,702,835 12,912,701 24,790,134
Capital Outlay 7,403,363 7,403,363 - 7,403,363
Total Expenditures 45,106,198 45,106,198 12,912,701 32,193,497
Excess (Deficiency) of Revenues Over (Under) Expenditures 8,281,674 8,281,674 8,158,200 (123,474)
Other Financing Sources (Uses):
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
(8,281,674)
(8,281,674)
64,282 64,282
(8,281,674) (5,460,786) 2,820,888
(8,281,674) (5,396,504) 2,885,170
2,761,696 2,761,696
Fund Balance (deficit) - Beginning of Year 3,555,166 3,555,166
Fund Balance (deficit) - End of Year $ $ $ 6316,862 $ 6,316,862
179
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - Midtown CRA
For The Fiscal Year Ended September 30, 2018
Budgeted Amounts
Original
Revenues:
Variance with
Final Actual Amounts Final Budget
Property Taxes $ 6,628,404 $ 6,628,404 $ 6,628,202 $ (202)
Total Revenues 6,628,404 6,628,404 6,628,202 (202)
Community Redevelpment Areas
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
6,562,120 6,562,120 6,563,920
6,562,120 6,562,120 6,563,920
66,284 66,284 64,282
(1,800)
(1,800)
(2,002)
Other Financing Sources (Uses):
Transfers Out (66,284) (66,284) _ (64,282) 2,002
Total Other Financing Sources (Uses) (66,284) (66,284) (64,282) 2,002
Net Change in Fund Balance
Fund Balance (deficit) - Beginning of Year
Fund Balance (deficit) - End of Year $ $ $ - $
180
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - SEOPW CRA
For The Fiscal Year Ended September 30, 2018
Budgeted Amounts
Original
Revenues:
Variance with
Final Actual Amounts Final Budget
Property Taxes $ 18,616,471 $ 18,616,471 $ 18,612,071 $ (4,400)
Intergovernmental Revenues - - 771,462 771,462
Investment Earnings (Loss) 735,712 735,712
Other 27,673,603 27,673,603 2,094,372 (25,579,231)
Total Revenues 46,290,074 46,290,074 22,213,617 (24,076,457)
Community Redevelpment Areas 34,593,584 34,593,584 13,552,042 21,041,542
Capital Outlay 591,406 591,406 677,649 (86,243)
Total Expenditures 35,184,990 35,184,990 14,229,691 20,955,299
Excess (Deficiency) of Revenues Over (Under) Expenditures 11,105,084 11,105,084 7,983,926 (3,121,158)
Other Financing Sources (Uses):
Transfers Out (11,105,084) (11,105,084) (8,538,484) 2,566,600
Total Other Financing Sources (Uses) (11,105,084) (11,105,084) (8,538,484) 2,566,600
Net Change in Fund Balance (554,558) (554,558)
Fund Balance (deficit) - Beginning of Year 24,593,205 24,593,205
Fund Balance (deficit) - End of Year $ $ $ 24,038,647 $ 24,038,647
181
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - Homeless Program
For The Fiscal Year Ended September 30, 2018
Budgeted Amounts
Original
Variance with
Final Actual Amounts Final Budget
Revenues:
Intergovernmental Revenues $ 2,183,000 $ 2,183,000 $ 1,756,013 $ (426,987)
Other 352,000 352,000 (352,000)
Total Revenues 2,535,000 2,535,000 1,756,013 (778,987)
General Government 2,535,000 2,535,000 2,201,368 333,632
Total Expenditures 2,535,000 2,535,000 2,201,368 333,632
Excess (Deficiency) of Revenues Over (Under) Expenditures (445,355) (445,355)
Net Change in Fund Balance (445,355) (445,355)
Fund Balance (deficit) - Beginning of Year 412,818 412,818
Fund Balance (deficit) - End of Year $ $ $ (32,537) $ (32,537)
182
Revenues:
Licenses and Permits
Intergovernmental Revenues
Charges for Services
Investment Eamings (Loss)
Other
Total Revenues
General Government
Community Development
Capital Outlay
Total Expenditures
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - Community Development
For The Fiscal Year Ended September 30, 2018
Budgeted Amounts
Original
22,412,000
24,088,000
46,500,000
46,500,000
46,500,000
Variance with
Final Actual Amounts Final Budget
$ $ 300 $ 300
22,400,000 25,342,832 2,942,832
439,474 439,474
20,638 20,638
24,288,000 (24,288,000)
46,688,000 25,803,244 (20,884,756)
69,286 (69,286)
47,582,000 23,255,018 24,326,982
2,844,564 (2,844,564)
47,582,000 26,168,868 21,413,132
Excess (Deficiency) of Revenues Over (Under) Expenditures (894.000) (365,624) 528,376
Other Financing Sources (Uses):
Transfers In 894,000 894,000
Total Other Financing Sources (Uses) 894,000 894,000
Net Change in Fund Balance
Fund Balance (deficit) - Beginning of Year
Fund Balance (deficit) - End of Year
528,376 528,376
13,506,745 13,506,745
$ $ 14,035,121 $ 14,035,121
183
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - Housing Choice Vouchers
For The Fiscal Year Ended September 30, 2018
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Intergovernmental Revenues $ 2,416,000 $ 2,416,000 $ 2,194,827 $ (221,173)
Investment Earnings (Loss) 56 56
Other
Total Revenues
2,416,000
12,000 11,035
2,428,000 2,205,918
Community Development 2,416,000 2,428,000 2,336,028
Total Expenditures 2,416,000 2,428,000 2,336,028
Excess (Deficiency) of Revenues Over (Under) Expenditures
Net Change in Fund Balance
Fund Balance (deficit) - Beginning of Year
Fund Balance (deficit) - End of Year
(965)
(222,082)
91,972
91,972
(130,110) (130,110)
(130,110) (130,110)
216,823 216,823
$ 86,713 $ 86,713
184
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - SHIP
For The Fiscal Year Ended September 30, 2018
Budgeted Amounts
Original
Revenues:
Intergovernmental Revenues
Investment Earnings (Loss)
Variance with
Final Actual Amounts Final Budget
$ - $ 1,396,873 $ 1,396,873
5,640 5,640
Other 1,315,000 1,315,000 283,420 (1,031,580)
Total Revenues 1,315,000 1,315,000 1,685,933 370,933
Community Development 1,315,000 1,315,000 1,094,798 220,202
Total Expenditures 1,315,000 1,315,000 1,094,798 220,202
Excess (Deficiency) of Revenues Over (Under) Expenditures
Net Change in Fund Balance
Fund Balance (deficit) - Beginning of Year
Fund Balance (deficit) - End of Year
591,135 591,135
591,135 591,135
1,088,946 1,088,946
$ 1,680,081 $ 1,680,081
185
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - Convention Center
For The Fiscal Year Ended September 30, 2018
Budgeted Amounts
Original
Revenues:
Variance with
Final Actual Amounts Final Budget
Other $ 1,119,000 $ 1,119,000 $ $ (1,119,000)
Total Revenues 1,119,000 1,119,000 (1,119,000)
Excess (Deficiency) of Revenues Over (Under) Expenditures 1,119,000
Other Financing Sources (Uses):
Transfers Out
Total Other Financing Sources (Uses)
(1,119,000)
(1,119,000)
1,119,000 (1,119,000)
(1,119,000) (1,118,999) 1
(1,119,000) (1,118,999) 1
Net Change in Fund Balance - (1,118,999) (1,118,999)
Fund Balance (deficit) - Beginning of Year - 1,118,762 1,118,762
Fund Balance (deficit) - End of Year $ $ - $ (237) $ (237)
186
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - Economic Development & Planning Services
For The Fiscal Year Ended September 30, 2018
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Licenses and Permits $ 114,000 $ 114,000 $ 211,478 $ 97,478
Charges for Services 600,000 600,000 2,641,764 2,041,764
Investment Earnings (Loss) - - (2,796) (2,796)
Other 16,586,000 19,214,000 (19,214,000)
Total Revenues 17,300,000 19,928,000 2,850,446 (17,077,554)
Planning and Development 14,921,000 17,549,000 418,619 17,130,381
Public Works 49,226 (49,226)
Capital Outlay 225,000 225,000 - 225,000
Total Expenditures 15,146,000 17,774,000 467,845 17,306,155
Excess (Deficiency) of Revenues Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
2,154,000 2,154,000 2,382,601 228,601
(2,154,000) (2,154,000)
(2,154,000) (2,154,000)
(3,154,000) (1,000,000)
(3,154,000) (1,000,000)
(771,399) (771,399)
Fund Balance (deficit) - Beginning of Year 17,299,975 17,299,975
Fund Balance (deficit) - End of Year $ $ $ 16.528,576 $ 16,528,576
187
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - NET Offices
For The Fiscal Year Ended September 30, 2018
Budgeted Amounts
Original
Revenues:
Variance with
Final Actual Amounts Final Budget
Licenses and Permits $ $ $ 30 $ 30
Fines and Forfeitures 2,800 2,800
Charges for Services 83,532 83,532
Investment Earnings (Loss) (15,294) (15,294)
Total Revenues 71,068 71,068
Excess (Deficiency) of Revenues Over (Under) Expenditures
Net Change in Fund Balance
71,068 71,068
71,068 71,068
Fund Balance (deficit) - Beginning of Year 1,666,618 1,666,618
Fund Balance (deficit) - End of Year $ $ $ 1,737,686 $ 1,737,686
188
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - Parks & Recreation Services
For The Fiscal Year Ended September 30, 2018
Budgeted Amounts
Original
Variance with
Final Actual Amounts Final Budget
Revenues:
Intergovernmental Revenues $ 275,000 $ 276,405 $ 555,695 $ 279,290
Charges for Services 1,977 1,977
Other 1,841,000 1,938,500 8,513 (1,929,987)
Total Revenues 2,116,000 2,214,905 566,185 (1,648,720)
Parks and Recreation 2,176,000 2,256,905 820,741 1,436,164
Capital Outlay - 18,000 15,788 2,212
Total Expenditures 2,176,000 2,274,905 836,529 1,438,376
Excess (Deficiency) of Revenues Over (Under) Expenditures
(60,000) (60,000) (270,344) (210,344)
Other Financing Sources (Uses):
Transfers In 60.000 60,000 60,000
Transfers Out (53,800) (53,800)
Total Other Financing Sources (Uses) 60.000 60,000 6,200 (53,800)
Net Change in Fund Balance
(264,144) (264,144)
Fund Balance (deficit) - Beginning of Year 3,286,636 3,286,636
Fund Balance (deficit) - End of Year $ $ 3,022,492 $ 3.022,492
189
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - Police Services
For The Fiscal Year Ended September 30, 2018
Budgeted Amounts
Original
Variance with
Final Actual Amounts Final Budget
Revenues:
Fines and Forfeitures $ 50,000 $ 50,000 $ $ (50,000)
Intergovernmental Revenues 4,357,000 5,383,000 5,850,771 467,771
Charges for Services 871,000 871,000 128,462 (742,538)
Investment Earnings (Loss) 51,903 51,903
Other 1,884,000 1,984,000 158,447 (1,825,553)
Total Revenues 7,162,000 8,288,000 6,189,583 (2,098,417)
Public Safety
Capital Outlay
Total Expenditures
11,836,000
1,333,000
13,169,000
12,757,000 10,325,785 2,431,215
1,538,000 177,674 1,360,326
14,295,000 10,503,459 3,791,541
Excess (Deficiency) of Revenues Over (Under) Expenditures (6,007,000) (6,007,000) (4,313,876) 1,693,124
Other Financing Sources (Uses):
Transfers In
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance (deficit) - Beginning of Year
Fund Balance (deficit) - End of Year
6,007,000 6,007,000 6,007,000
6,007,000 6,007,000 6,007,000
1,693,124 1,693,124
5.717,797 5,717,797
$ $ 7,410,921 $ 7,410,921
190
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - Law Enforcement Trust
For The Fiscal Year Ended September 30, 2018
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Fines and Forfeitures $ 600,000 $ 600,000 $ 184,002 $ (415,998)
Investment Earnings (Loss) - - 23,163 23,163
Other 1,842,000 1,394,000 (1,394,000)
Total Revenues 2,442,000 1,994,000 207,165 (1,786,835)
Public Safety 2,064,000 1,616,000 596,058 1,019,942
Capital Outlay 378,000 378,000 27,639 350,361
Total Expenditures 2,442,000 1,994,000 623,697 1,370,303
Excess (Deficiency) of Revenues Over (Under) Expenditures
Net Change in Fund Balance
(416,532) (416,532)
(416,532) (416,532)
Fund Balance (deficit) - Beginning of Year 1,393,791 1,393,791
Fund Balance (deficit) - End of Year $ $ $ 977,259 $ 977,259
191
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - Public Works Services
For The Fiscal Year Ended September 30, 2018
Budgeted Amounts
Original
Revenues:
Variance with
Final Actual Amounts Final Budget
Licenses and Permits $ 300,000 $ 300,000 $ 231,359 $ (68,641)
Charges for Services 6,914,000 6,914,000 6,718,247 (195,753)
Other 9,813,000 11,286,000 (11,286,000)
Total Revenues 17,027,000 18,500,000 6,949,606 (11,550,394)
Public Works 14,449,000 16,118,000 3,105,517
Capital Outlay 45,833
Total Expenditures 14,449,000 16,118,000 3,151,350
Excess (Deficiency) of Revenues Over (Under) Expenditures
2,578,000 2,382,000 3,798,256
13,012,483
(45,833)
12,966,650
1,416,256
Other Financing Sources (Uses):
Transfers In 196,000 1,465,000 1,269,000
Transfers Out (2,578,000) (2,578,000) (5,030,155) (2,452,155)
Total Other Financing Sources (Uses) (2,578,000) (2,382,000) (3,565,155) (1,183,155)
Net Change in Fund Balance
233,101 233,101
Fund Balance (deficit) - Beginning of Year 11,286,062 11,286,062
Fund Balance (deficit) - End of Year $ $ $ 11,519,163 $ 11,519,163
192
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - City Clerk Services
For The Fiscal Year Ended September 30, 2018
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Charges for Services $ 90,000 $ 90,000 $ 238,441 $ 148,441
Other 611,000 1,002,000 (1,002,000)
Total Revenues 701,000 1,092,000 238,441 (853,559)
General Government
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers In
Total Other Financing Sources (Uses)
Net Change in Fund Balance
749,000 1,140,000 83,303 1,056,697
1,500 (1,500)
749,000 1,140,000 84,803 1,055,197
(48,000) (48,000)
48,000
48,000
153,638 201,638
48,000 48,000
48,000 48,000
201,638 201,638
Fund Balance (deficit) - Beginning of Year 1,002,210 1,002,210
Fund Balance (deficit) - End of Year $ $ - $ 1,203,848 $ 1,203,848
193
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - Fire Rescue Services
For The Fiscal Year Ended September 30, 2018
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Intergovernmental Revenues $ 6,433,000 $ 7,868,600 $ 6,816,770 $ (1,051,830)
Charges for Services 13,045 13,045
Investment Earnings (Loss) 1,314 1,314
Other 10,739,000 9,516,000 57,665 (9,458,335)
Total Revenues 17,172,000 17,384,600 6,888,794 (10,495,806)
Public Safety 12,619,000 12,076,100 7,180,851 4,895,249
Capital Outlay 5,097,000 5,915,500 407,319 5,508,181
Total Expenditures 17,716,000 17,991,600 7,588,170 10,403,430
Excess (Deficiency) of Revenues Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers In
Total Other Financing Sources (Uses)
Net Change in Fund Balance
(544,0.00) (607,000) (699,376) (92,376)
544,000
544,000
607,000 607,000
607,000 607,000
(92,376) (92,376)
Fund Balance (deficit) - Beginning of Year 2,674,350 2,674,350
Fund Balance (deficit) - End of Year $ $ $ 2,581,974 $ 2,581,974
194
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - General Special Revenues
For The Fiscal Year Ended September 30, 2018
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Intergovernmental Revenues $ 400,000 $ 400,000 $ 305,360 $ (94,640)
Other 475,000 1,136,000 584,246 (551,754)
Total Revenues 875,000 1,536,000 889,606 (646,394)
General Government
Public Works
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers In
Total Other Financing Sources (Uses)
Net Change in Fund Balance
875,000
1,000 336,224 (335,224)
1,566,000 412,903 1,153,097
20,965 (20,965)
875,000 1,567,000 770,092 796,908
(31,000) 119,514 150,514
31,000 31,000
31,000 31,000
150,514 150,514
Fund Balance (deficit) - Beginning of Year 697,817 697,817
Fund Balance (deficit) - End of Year $ $ $ 848.331 $ 848,331
195
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - Departmental Improvement Initiatives
For The Fiscal Year Ended September 30, 2018
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Fines and Forfeitures $ 600,000 $ 600,000 $ 1,564,335 $ 964,335
Intergovernmental Revenues 1,935,000 1,935,000 1,647,505 (287,495)
Investment Earnings (Loss) 80,633 80,633
Other 4,005,000 6,117,500 10,000 (6,107,500)
Total Revenues 6,540,000 8,652,500 3,302,473 (5,350,027)
General Government 8,877,000 11,656,000 5,161,142 6,494,858
Planning and Development 2,266,000 2,641,000 627,869 2,013,131
Public Works 2,500 21,915 (19,415)
Public Safety 4,450 (4,450)
Public Facilities 148,000 2,143,279 (1,995,279)
Parks and Recreation 200,000 216,000 187,833 28,167
Capital Outlay - 264,620 (264,620)
Total Expenditures 11,343,000 14,663,500 8,411,108 6,252,392
Excess (Deficiency) of Revenues Over (Under) Expenditures (4,803,000) (6,011,000) (5,108,635) 902,365
Other Financing Sources (Uses):
Transfers In 4,803,000 6,011,000 6,561,000 550,000
Transfers Out - (355,021) (355,021)
Total Other Financing Sources (Uses) 4,803,000 6,011,000 6,205,979 194,979
Net Change in Fund Balance
1,097,344 1,097,344
Fund Balance (deficit) - Beginning of Year 9,570,738 9,570,738
Fund Balance (deficit) - End of Year $ $ $ 10,668,082 $ 10,668.082
196
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - Transportation & Transit
For The Fiscal Year Ended September 30, 2018
Budgeted Amounts
Original
Variance with
Final Actual Amounts Final Budget
Revenues:
Intergovernmental Revenues $ 16,556,000 $ 16,556,000 $ 17,844,619 $ 1,288,619
Investment Earnings (Loss) - 13,206 13,206
Other 4,075,000 5,882,000 (5,882,000)
Total Revenues 20,631,000 22,438,000 17,857,825 (4,580,175)
General Government - - 19,528 (19,528)
Public Works 14,245,000 16,052,000 10,157,593 5,894,407
Total Expenditures 14,245,000 16,052,000 10,177,121 5,874,879
Excess (Deficiency) of Revenues Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers Out
Total Other Financing Sources (Uses)
6,386,000 6,386,000 7,680,704 1,294,704
(6,386,000)
(6,386,000)
(6,386,000) (9,846,000) (3,460,000)
(6,386,000) (9,846,000) (3,460,000)
Net Change in Fund Balance (2,165,296) (2,165,296)
Fund Balance (deficit) - Beginning of Year 5,881,706 5,881,706
Fund Balance (deficit) - End of Year $ $ $ 3,716,410 $ 3.716,410
197
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - Miami Ballpark Parking Facilities
For The Fiscal Year Ended September 30, 2018
Budgeted Amounts
Original
Variance with
Final Actual Amounts Final Budget
Revenues:
Intergovernmental Revenues $ $ - $ 50,000 $ 50,000
Charges for Services 5,127,000 5,127,000 5,250,880 123,880
Total Revenues 5,127,000 5,127,000 5,300,880 173,880
Public Facilities
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
3,120,000 3,120,000 2,342,550 777,450
3,120,000 3,120,000 2,342,550 777,450
2,007,000 2,007,000 2,958,330 951,330
(2,007,000)
(2,007,000)
(2,007,000) (2,007,000)
(2,007,000) (2,007,000)
951,330 951,330
Fund Balance (deficit) - Beginning of Year 3,169,417 3,169,417
Fund Balance (deficit) - End of Year $ $ $ 4,120,747 $ 4,120,747
198
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - Liberty City Revitalization Trust
For The Fiscal Year Ended September 30, 2018
Budgeted Amounts
Original
Variance with
Final Actual Amounts Final Budget
Revenues:
Intergovernmental Revenues $ 289,000 $ 689,000 $ 599,000 $ (90,000)
Other 225,000 240,000 30,000 (210,000)
Total Revenues 514,000 929,000 629,000 (300,000)
Community Redevelpment Areas 514,000 929,000 726,725 202,275
Total Expenditures 514,000 929,000 726,725 202,275
Excess (Deficiency) of Revenues Over (Under) Expenditures (97,725) (97,725)
Net Change in Fund Balance
(97,725) (97,725)
Fund Balance (deficit) - Beginning of Year 331,324 331,324
Fund Balance (deficit) - End of Year $ $ $ 233,599 $ 233,599
199
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - Virginia Key Beach Park Trust
For The Fiscal Year Ended September 30, 2018
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Intergovernmental Revenues $ $ - $ 313,350 $ 313,350
Charges for Services 716,800 716,800 441,981 (274,819)
Investment Earnings (Loss) - 4,303 4,303
Other 50,000 50,000 192,024 142,024
Total Revenues 766,800 766,800 951,658 184,858
Parks and Recreation 1,054,800 1,054,800 889,791 165,009
Capital Outlay 12,000 12,000 10,078 1,922
Total Expenditures 1,066,800 1,066,800 899,869 166,931
Excess (Deficiency) of Revenues Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers In
Total Other Financing Sources (Uses)
Net Change in Fund Balance
(300,000) (300,000) 51,789 351,789
300,000
300,000
300,000 (300,000)
300,000 (300,000)
51,789 51,789
Fund Balance (deficit) - Beginning of Year 23,113 23,113
Fund Balance (deficit) - End of Year $ $ $ 74,902 $ 74,902
200
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - Solid Waste RecyclingTrust
For The Fiscal Year Ended September 30, 2018
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Investment Earnings (Loss) $ 10,000 $ 10,000 $ 17,184 $ 7,184
Other _ 141,000 133,000 (133,000)
Total Revenues 151,000 143,000 17,184 (125,816)
Public Works
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
Net Change in Fund Balance
151,000 143,000
151,000 143,000
39,284
39,284
103,716
103,716
(22,100) (22,100)
(22,100) (22,100)
Fund Balance (deficit) - Beginning of Year 1,132,906 1,132,906
Fund Balance (deficit) - End of Year $ $ $ 1,110,806 $ 1,110,806
201
Revenues:
Total Revenues
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - Bayfront Park Land Acquisition Trust Fund
For The Fiscal Year Ended September 30, 2018
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Public Facilities 1,420,000 1,420,000 1,420,000
Total Expenditures 1,420,000
Excess (Deficiency) of Revenues Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers In
Total Other Financing Sources (Uses)
1,420,000 1,420,000
(1,420,000) (1,420,000) 1,420,000
1,420,000 1,420, 000 1,420, 000
1,420,000
1,420,000 1,420,000
Net Change in Fund Balance 1.420,000 1,420,000
Fund Balance (deficit) - Beginning of Year
Fund Balance (deficit) - End of Year $ $ $ 1.420.000 $ 1,420,000
202
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - General Obligation Bonds
For The Fiscal Year Ended September 30, 2018
Budgeted Amounts
Original
Revenues:
Variance with
Final Actual Amounts Final Budget
Property Taxes $ 27,978,000 $ 27,978,000 $ 28,017,811 $ 39,811
Investment Earnings (Loss) 32,876 32,876
Total Revenues 27,978,000 27,978,000 28,050,687 72,687
General Government 3,660,000 3,660,000 9,557 3,650,443
Principal 18,097,000 18,097,000 20,255,000 (2,158,000)
Interest and Other Charges 6,221,000 6,221,000 3,941,109 2,279,891
Total Expenditures 27,978,000 27,978,000 24,205,666 3,772,334
Excess (Deficiency) of Revenues Over (Under) Expenditures 3,845,021 3,845,021
Net Change in Fund Balance
3,845,021 3,845,021
Fund Balance (deficit) - Beginning of Year 5,580,816 5,580,816
Fund Balance (deficit) - End of Year $ $ 9,425.837 $ 9,425.837
203
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - Special Obligation Bonds
For The Fiscal Year Ended September 30, 2018
Budgeted Amounts
Original
Variance with
Final Actual Amounts Final Budget
Revenues:
Intergovernmental Revenues $ 4,000,000 $ 4,000,000 $ 4,000,000 $
Investment Earnings (Loss) 130,351 130,351
Other 4,179,000 4,679,000 (4,679,000)
Total Revenues 8,179,000 8,679,000 4,130,351 (4,548,649)
General Government 2,006,000 2,006,000 374,893 1,631,107
Principal 29,252,300 116,252,300 30,494,962 85,757,338
Interest and Other Charges 20,725,700 21,225,700 28,993,375 (7,767,675)
Total Expenditures 51,984,000 139,484,000 59,863,230 79,620,770
Excess (Deficiency) of Revenues Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers In
Proceeds Received from Refunding
Payment To Escrow Agent For Refunding
Issuance of Debt
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance (deficit) - Beginning of Year
Fund Balance (deficit) - End of Year
(43,805,000) (130,805,000) (55,732,879) 75,072,121
43,805,000
43,805,000
43,805,000 43,805,000
83,045,000 83,045,000
(74,105,000) (74,105,000)
87,000,000 (87,000,000)
130,805,000 52,745,000 (78,060,000)
(2,987,879)
35,092,296
(2,987,879)
35,092,296
$ $ 32,104,417 $ 32,104.417
204
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - CRA Other Special Obligation Bonds
For The Fiscal Year Ended September 30, 2018
Budgeted Amounts
Original
Variance with
Final Actual Amounts Final Budget
Revenues:
Investment Earnings (Loss) $ $ $ 3,157 $ 3,157
Total Revenues 3,157 3,157
Community Redevelpment Areas 217,515 (217,515)
Principal 2,850,000 (2,850,000)
Interest and Other Charges 2,364,661 (2,364,661)
Total Expenditures 5,432,176 (5,432,176)
Excess (Deficiency) of Revenues Over (Under) Expenditures
(5,429,019) (5,429,019)
Other Financing Sources (Uses):
Transfers In 5,214,661 5,214,661
Issuance of Debt 2,770,000 2,770,000
Total Other Financing Sources (Uses) 7,984,661 7,984,661
Net Change in Fund Balance 2,555,642 2,555,642
Fund Balance (deficit) - Beginning of Year
Fund Balance (deficit) - End of Year $ $ $ 2.555.642 $ 2,555,642
205
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
the payment of 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 the payment of 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)
This Fund is used to account for the accumulation of resources to be used for the payment
of retirement benefits to elected officials. Resources are contributed by the City in amounts
determined by annual actuarial valuations.
206
City of Miami, Florida
Combining Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2018
Employee Retirement Funds
General and General and
General and Sanitation Sanitation
Sanitation Employees Employees Staff Elected Officers Total Employee
Fire Fighters and Employees (GESE Excess Plan (GESE Retirement Trust Retirement
Police (FIPO) (GESE) Plan) Staff Plan) (EORT) Funds
Assets
Cash and Cash Equivalents $ 51,915,921 $ 474,359 $ 29,839 $ 82,745 $ $ 52,502,864
Accounts Receivable 4,446,032 3,757,283 18,177 5,000 8,226,492
Capital Assets, Net 1,743,557 1,438,710 - - 3,182,267
58,105,510 5,670,352 48,016 87,745 63,911,623
Investments:
U.S. Government Obligations 120,172,745 107,958,385 2,490,225 230,621,355
Corporate Bonds 248,446,185 68,574,982 1,016,069 318,037,236
Corporate Stocks 478,187,607 499,478,556 3,164,224 980,830,387
Money Market Funds and Commercial Paper 25,319,528 4,712,917 30,032,445
International Equity 258,016,522 - 258,016,522
Real Estate 179,279,484 179,279,484
Private Equity 156,839,046 156,839,046
Absolute Return Funds 75,013,697 - 75,013,697
Total Investments 1,515,955,286 701,331,451 4,180,293 7,203,142 2,228,670,172
Securities Lending Collateral 143,720,934 - 143,720,934
Total Assets 1,717,781,730 707,001,803 48,016 4,268,038 7,203,142 2,436,302,729
Liabilities
Obligations Under Security Lending Transactions 143,720,934 - 143,720,934
Accounts Payable 845,008 48,016 6,029 899,053
Accrued Liability 1,250,601 - 1,250,601
Payable for Securities Purchased 6,127,819 1,626,897 7,754,716
Total Liabilities 151,099,354 2,471,905 48,016 6,029 153,625,304
Net Position
Restricted for Pension Benefits $ 1,566,682,376 $ 704,529,898 $ $ 4,262,009 $ 7,203,142 $ 2,282,677,425
207
City of Miami, Florida
Combining Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Fiscal Year Ended September 30, 2018
Employee Retirement Funds
General and General and
General and Sanitation Sanitation Total
Sanitation Employees Employees Staff Elected Officers Employee
Fire Fighters and Employees (GESE Excess Plan (GESE Retirement Trust Retirement
Police (FIPO) (GESE) Plan) Staff Plan) (EORT) Funds
Additions
Contributions:
Employer $ 56,999,866 $ 40,879,285 $ 587,959 $ 276,246 $ 553,471 $ 99,296,827
Plan Members 14,258,763 10,847,473 32 621 25,138,857
Total Contributions 71,258,629 51,726,758 587,959 308,867 553,471 124,435,684
Investment Earnings:
Net Increase in Fair Value of Investments 82,691,975 52,028,523 340,143 93,207 135,153,848
Interest 16,685,484 5,912,897 - - 22,598,381
Dividends 9,584,728 4,480,800 84,228 14,149,756
Other 233,980 34,290 - - 268,270
Total Investment Earnings 109,196,167 62,456,510 - 424,371 93,207 172,170,255
Security Lending Activities:
Security Lending Income
Security Lending Fees and Rebates
Net Income From Security Lending Activities
Less Investment Expenses
Net Investment Earnings
Reimbursement From City for Administrative Costs
Total Additions
646,466
(161,508)
484,958
(7,385,119)
102,296,006
646,466
(161,508)
484,958
(2,179,681) - (9,564,800)
60,276,829 424,371 93,207 163,090,413
3,075,182 100,823 - - 3,176,005
173,554,635 115,078,769 688,782 733,238 646,678 290,702,102
Deductions
Benefits/Payments 130,598,647 72,722,490
Refunds upon Resignation, Death, Other 214,654 2,318,219
Distribution to Retirees 25,279,985
Administrative and Other Expenses 2,129,434 3,362,635
Total Deductions 158,222,720 78,403,344
Change in Net Position 15,331,915 36,675,425
Net Position- Beginning of Year, As Restated (Note 15) 1,551,350,461 667,854,473
Net Position- End of Year $ 1,566,682,376 $ 704,529,898
587,959 344,159 325,800 204,579,055
- 7,606 2,540,479
- - - 25,279,985
100,823 2 400 5,595,292
688,782 351,765 328,200 237,994,811
- 381,473 318,478 52,707,291
3,880,536 6,884,664 2,229,970,134
$ 4,262,009 $ 7,203,142 $ 2,282,677,425
208
This part of the City's comprehensive annual financial report presents detailed information
as a context for understanding what the information contained in the financial statements,
note disclosures, and required supplementary information says about the City's overall
financial health.
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.
DEMOGRAPI-IIC 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.
209
CITY OF MIAMI, FLORIDA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCURAL BASIS OF ACCOUNTING)
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Primary Government
Net Investment in Capital Assets $ 578,092,580 $ 627,800,618 $ 616,752,804 $ 614,080,419 $ 651,485,412 $ 626,017,000 $ 657.452,000 $ 693,247,000 $ 752,507,000 $ 791,006,000
Restricted 401,755,649 297,600.108 273,730,365 237.584,556 86,209,162 93,376.000 90.078,000 95,873,000 88,297,000 77,577,000
Unrestricted (Deficil) (1,581,291,781) (1,431,127,427) (1,224.962,154) (1,163.152,861) (947,529,448) (327,113,000) (331.776,000) (341,277,000) (306,024,000) (242,954,000)
Total Primary Government Net Position $ (601,443,552) $ (505,726,701) $ (3 34.17N 985) $ (311 407,880) $ (209,834.8741 $ 392,280,000 $ 415.754.000 0 447,843,000 $ 534,780,000 $ 625,629,000
Note
(1) The City dews not have any business -type activities for financial reporting purposes.
CITY OF MIAMI
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2018 2017 2016 2015 2014
2013 2012 2011 2010 2009
Expenses
Governmental Activities:
General Government $ 162,800,242 $ 174,982,174 $ 145.455,559 $ 167,055,389 $ 240,815,051 $ 144,400,178 $ 104,495,000 $ 164,006,000 $ 152.727,000 $ 155,198,000
Planning and Development 22,721,335 19,462,678 15,513,166 15,479,449 50,647,846 11,688,186 16,397,000 10,801,000 12,019,000 15,465,000
Community Development 28,371,102 29,443,452 27,937,279 30,519,798 45,476,324 38,926,526 38,100,000 40,852,000 39,655,000 37,126,000
Community Redevelpment Areas 35,272.784 34.616.272 36.149.769 58,062.764 18,087,177 20,836,076 17,041,000 4,696,000 29.288,000 20,566,000
Public Works 123,517,711 95,595.175 91,985,468 76.035,122 156,036,690 69,241,668 83,062,000 65,604,000 69,970,000 72,003,000
Public Safety 387,651,946 579,366,645 446,865,144 385,120,293 776,125,991 337.347,418 352,869.000 333,431,000 371,351,000 375,402,000
Public Facilities 22.371,164 19,086,773 16,758,483 16,560,573 23,126,368 15,403.258 16,330,000 11,242,000 16,848,000 13,179,000
Parks and Recreation 66,817,655 63,380,712 50,207,864 42,585,419 78,558,325 43.340,882 44,977,000 39,223,000 39,776,000 43,441,000
Interest on Long -Term Debt 25,405,481 29,663,407 32,606,891 33,747,629 31,932,034 43,544 000 37,426.000 43,336,000 27.533,000 36,091,000
Contribution to Pon Tunnel - - - - 50,000,000
Total Primary Government Expenses 874,929.420 1,045,597,288 863,479,623 825,166,436 1,420,805;808 724,728,191 710,697,000 763,191,000 759,167,000 768,471,000
Program Revenues
Govemmental Activities:
Charges for Services
General Govemment 79,797,772 80,722,098 78,089,981 66,307,491 65,821,177 50,684,922 51,265,000 48,814,000 38,703,000 35,587,000
Planning and Development 45.574,467 46,837,017 47,586.059 45.385,722 36,879,821 18,848,000 15,328,000 13.125,000 9.719.000 9.611.000
Community Development 538,541 - 1.766,173 5,009.547 824.248 1,555,000 709,000 1,585.000 155,000
Community Redevelpment Areas 4,332,416 1,998.138 2,157,456 1.138,695 416.337 62,000 39,000 224,000 1.275,000 1,065,000
IV
Public Works 61,719.832 58,727,450 56.594,045 54.021.469 50,279.793 47.178,270 41,533,000 49,349,000 46,480,000 47,792.000
Public Safety 39,758,748 29,475,920 28,477,126 24,708,571 25,426,372 26,207,867 23,321,000 15,997,000 22,152,000 17,785,000
Public Facilities 35,922,412 37,720,512 35,324,297 37.455,509 30,925,509 29.219,001 27,353,000 18,244,000 14.636,000 15,459,000
Parks and Recreation 6,958,019 7,741,695 7,845,180 8,454,738 5,613,643 7.111,007 7,184,000 6,224,000 6.247,000 4,827,000
Operating Grants and Contributions 95,524,077 81,114,292 88,478,479 84,631,766 105,483,092 103,176,700 88,608,000 94,339,000 73.139,00(1 64,646,000
Capital Grants and Contributions 9,069,762 1,078.796 11,315,519 9,253,860 2,598,400 17.042,000 29,303,000 21,824,000 27,113,000 33,964.000
Total Primary Government Program Revenue 379,196,046 345,415,918 357,634,315 336,367,368 324,268,392 301,084,767 284,643,000 269,725,000 239,619,000 230,736,000
Net(Expense)/Revenue
Total Primary Govemmenl Net Expense (495.733.374) (700.181.370) (505,845.308) (488,799,068) (1.096,537.416) (423,643.424) (426.054,000) (493.466,000) (519.548.000) (537.735,000)
General Revenues and Other Changes in Net Assets
Governmental Activities:
Taxes
Property Taxes. Levied for General Purposes 369,230,063 336,475,508 298,719,456 269,303,313 241,721,842 232,082,786 223,386,000 233,193,000 264,548,000 283,516,000
Property Taxes. Levied for Debt Service 28,017,811 26,964,194 25,661,731 24,848,727 24,853,248 26,425,030 26,887,000 28,132,000 22,663,000 21,378.000
Franchise Taxes 49,741,913 49,207,879 47,416,360 47,560,134 46,311,659 44,698,943 44,650,000 44,882,000 43,121,000 42,824.000
State Revenue Sharing -Unrestricted 16,380,921 15,687,260 14,836,385 14,389,530 13,389,054 12,673,362 12,367,000 11,430,000 10,515,000 22,567,000
Sales and Other Use Taxes 35,786,997 33,521,269 32,699,735 31,254,199 29,490,981 27,737,964 25,803,000 25,988,000 22,666,000 22,567,000
Public Service Taxes 64,250,989 62,532,940 60,020,384 59,576,109 60,395,502 59,322,198 58,046,000 59,427,000 61,967,000 64,010,000
Investment Eamings(Losses)-Unrestricted 9,681,342 4,544,604 3,500,158 4,761,254 4,298,129 (2,653,269) 2,826,000 2,393,000 3,218,000 7,718,000
Gain (Loss) on Disposal of Capital Assets - (546,835) 9,960,348 (115,656) 1,087,000
Other General Revenues - 378,000
Total Primary Government 573,090.036 528,933,654 482,854,209 451,146,431 430,420,763 400.171,358 393,965.000 406.532,000 428,698.000 464.958.000
Change in Net Position
Total Primary Govemment 77,356,662 (171,247,716) (22,991,099) (37,652,637) (666,116,653) (23.472,066) (32,089,000) (86,934,000) (90,850,000) (72,777,000)
Notes: (1) The City does not have any business -type activities for financial reporting purposes.
Fiscal
Year
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
CITY OF MIAIVII, FLORIDA
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Ad Valorem
Taxes General
Purpose
$ 369,230,063
336,475,508
298,719,456
269,303,313
241,721,842
232,082,786
223,386,064
233,193,302
264,548,387
283,516,182
Ad Valorem
Taxes Debt
Service
$ 28,017,811
26,964,194
25,661,731
24,848,727
24,853,248
26,425,030
26,887,032
28,131,853
22,662,573
21,377,549
Franchise Taxes
$ 49,741,913
49,207,879
47,416,360
47,560,134
46,311,659
44,698,943
26,649,826
44,881,126
43,120,713
42,823,572
Sales and
Other Use
Taxes
$ 35,786,997
33,521,269
32,699,735
31,254,199
29,490,981
27,737,964
17,793,928
25,987,633
22,665,743
22,566,791
Communication
Service Taxes
$ 64,250,989
62,532,940
60,020,384
59,576,109
60,395,502
59,322,198
58,045,986
59,426,883
61,966,455
64,010,537
Total
$ 547,027,773
508,701,790
464,517,666
432,542,482
402,773,232
390,266,921
352,762,836
391,620,797
414,963,871
434,294,631
212
Fund Balances (Deficit):
Non -Spendable Fund Balance
Non Spendable
Spendable Fund Balance
Restricted
Committed
Assigned
Unassigned (deficit)
Total Fund Balances (Deficit)
CITY OF MIAMI,FLORIDA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST EIGHT FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
2018
2017 2016
2015 2014
2013
2012
2011
$ 3,181,065 $ 3,123,531 $ 3,033,309 $ 3,474,396 $
3,975,000 $
3,554,000 $ 8,141,000 $ 4,897,000
401,731,979 338,319,610 310,576,099 297,118,841 226,564,000 261,858,000 333,199,000 382,134,000
107,646,577 121,083,524 133,813,871 92,342,101 110,418,000 20,881,000 16,512,000 18,349,000
62,505,392 44,647,057 44,240,127 61,350,740 56,487,000 73,642,000 52,161,000 18,908,000
46,904,276 59,618,612 36,487.814 58,533,534 54,180,000 (3,399,000) (9,324,000) (4,978,000)
$ 621,969,289 $ 566,792,334 $ 528,151,220 $ 512,819,612 $ 451,624,000 $ 356,536,000 $ 400,689,000 $ 419,310,000
Note: Years prior to fiscal year 2010 have not been presented due to the implementation of GASB Statement No. 54, which provided
for new categories for classifying governmental fund balances. Changes to the fund balance is being presented prospectively.
CITY OF MIAMI, FLORIDA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Revenues
Property Taxes
Franchise and Other Taxes
Licenses and Permits
Fines and Forfeitures
Intergovernmental Revenues
Charges for Services
Investment Earnings (Loss)
Impact Fees
Other
Total Revenues
Expenditures
General Government
Planning and Development
Community Development
Community Redevelpment Areas
Public Works
Public Safety
Public Facilities
Parks and Recreation
Contribution to Port Tunnel
Organizational Support
Debt Service:
Principal
Interest and Other Charges
Debt Issuance Costs
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses)
Transfers In
Transfers Out
Proceeds from Sale of Property
Proceeds Received from Refunding
Payment To Escrow Agent For Refunding
Proceeds Received From Long -Term Debt
Premium from Issuance of Debt
Issuance of Debt
Capital Leases
Sale of Capital Assets
Discount from Issuance of Debt
Total Other Financing Sources (Uses)
Net Changes in Fund Balances
Debt Service as a Percentage
of Non -Capital Expenditures
2018 2017
2016
2015
2014
$ 397,247,874 $
113,992,902
73,756,786
15,638,528
156,349,299
133,732,658
9,681,342
20,861,463
30,612,771
951,873,623
363,439,702 $ 324,381,187 $
111,740,819 107,436,744
73,030,964 71,826,609
17,727,789 17,022,156
131,983,836 144,464,881
131,422,481 128,520,198
4,544,604 3,500,158
25,347,222 25,491,632
15,694,374 14,979,722
874,931,791 837,623,287
294,152,040 $ 266,575,890
107,136,243 106,706,981
65,136,838 60,905,490
13,606,546 12,633,258
144,172,756 147,318,713
127,031,324 109,858,728
4,761,254 4,298,129
20,848,627 21,561,620
15, 858,407 11,227,804
792,704,035 741,086,613
117,223,208
22,526,541
28,331,999
33,972,903
113,249,970
398,331,195
18,098,100
53,971,624
113,687,204
18,478,112
29,059,382
33,155,840
93,603,216
377,635,776
16,095,228
50,122,922
53,599,962 42.848,297
35,299,145 33.376,755
80,821,666 80,312,188
955,426,313 888,374,920
94,863,916
16,530,501
27,669,432
35,240,353
88,781,332
358,151,070
14,172,514
40,252,541
95,097,965
17,528,545
30,618,655
57,374,849
72,332,848
320,578,664
14,182,077
34,176,174
93,266,684
13,886,927
32,773,187
16,496,169
64,762,823
309,032,876
11,558,522
30,933,658
31,666,421 23,134,356 47,423,659
37,407,853 43,562,774 42,414,727
88,247,094 87,743,237 65,700,078
832,983,027 796,330,144 728,249,310
(3,552,690) (13,443,129)
118,757, 528 115,984,813
(118,757,527) (115,984,813)
277,969 787,221
83,045,000 114,380,000
(74,105,000) (112,330,000)
49,511,675 49,314,922
4,640,260 (3,626,109) 12,837,303
134,391,945
(134,391,945)
441,720
57,240,000
(57,635,000)
10,644,628
113,353,457
(113,353,457)
1,957,890
130,317,671
(130,317,670)
10,607,538
4,330,862
73,934,380
(67,900) - -
58,729,645 52,084,243 10,691,348 1,957,890 88,872,781
$ 55,176,955 $ 38.641,114 $ 15,331,608 $ (1,668,219) $ 101,710,084
10.16% 9.43%
9.28% 9.41% 13.56%
(continued)
214
CITY OF MIAMI, FLORIDA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Revenues
Property Taxes
Franchise and Other Taxes
Licenses and Permits
Fines and Forfeitures
Intergovernmental Revenues
Charges for Services
Investment Earnings (Loss)
Impact Fees
Other
Total Revenues
Expenditures
General Government
Planning and Development
Community Development
Community Redevelpment Areas
Public Works
Public Safety
Public Facilities
Parks and Recreation
Contribution to Port Tunnel
Organizational Support
Debt Service:
Principal
Interest and Other Charges
Debt Issuance Costs
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses)
Transfers In
Transfers Out
Proceeds from Sale of Property
Proceeds Received from Refunding
Payment To Escrow Agent For Refunding
Proceeds Received From Long -Term Debt
Premium from Issuance of Debt
Issuance of Debt
Capital Leases
Sale of Capital Assets
Discount from Issuance of Debt
Total Other Financing Sources (Uses)
Net Changes in Fund Balances
2013 2012
$ 258,507,816 $ 250,273,000
104,021,141 102,696,000
35,894,264 35,726,000
11,822,487 5,538,000
169,377,430 152,3 87,000
123,088,110 106,717,000
(2,653,269) 2,826,000
9,121,554 4,338,000
7,446,994 14,934,000
716,626,527 675,435,000
94,333,429
11,938,108
38,461,763
20,408,076
63,269,335
311,799,509
12,422,038
32,461,502
73,066,874
44,111,501
52,579,857
754,851,992
187,595,000
7,922,000
36,706,000
22,041,000
48,949,000
221,066,000
12,708,000
25,879,000
22,934,000
41,185,000
66,897,000
693,882,000
2011
$ 261,325,000 $
104,309,000
34,031,000
6,454,000
170,755,000
94,711,000
2,393,000
1,355,000
10,102,000
685,435,000
166,671,000
8,328,000
40,432,000
4,395,000
46,644,000
218,698,000
9,803,000
26,540,000
50,000,000
30,524,000
29,492,000
39,648,000
2,048,000
113,888,000
787,111,000
2010
287,211,000 $
105,090,000
25,348,000
5,208,000
153,416,000
88,420,000
3,218,000
12,000
9,106,000
677,029,000
180,608,000
9,340,000
39,158,000
29,084,000
51,337,000
249,749,000
12,556,000
27,545,000
32,219,000
27,261,000
38,065,000
55,696,000
752,618,000
2009
304,894,000
106,834,000
26,105,000
7,441,000
141,254,000
85,927,000
7,718,000
332,000
10 757>000
691,262,000
158,902,000
11,350,000
36,413,000
20,144,000
55,173,000
266,285,000
11,660,000
33,211,000
41,315,000
23,566,000
31,928,000
106,863,000
796,810,000
196,099,000
(196,099,000)
(32,366,000)
108,490,000
(794,000)
(38,225,465) (18,447,000) (101,676,000) (75,589,000) (105,548,000)
79,854,462
(79,854,460)
304,345
50,028,639
114,263,000
(114,263,000)
100,560,000
(100,560,000)
1,087,000
68,894,000
(68,572,000)
1,712,000
51,751,000
146,557,000
(146,557,000)
(1,392,000)
166,370,000
50,332,986 - 54,872,000 164,978,000 75,330,000
$ 12,107,521 $ (18,447,000) $ (46,804,000) $ 89,389.000 $ (30,218,000)
Debt Service as a Percentage
of Non -Capital Expenditures 16.69%
10.23%
10.27%
9.37% 8.04%
215
Fiscal
Year
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
CITY OF MIAMI, FLORIDA
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Ad Valorem
Taxes
General Purpose
$ 369,230,063
336,475,508
298,719,456
269,303,313
241,722,642
232,082,786
223,386,000
233,193,000
264,548,000
283,516,000
Ad Valorem
Taxes
Debt Service
$ 28,017,811
26,964,194
25,661,731
24,848,727
24,853,248
26,425,030
26,887,000
28,132,000
22,663,000
21,378,000
Sales Communication
Franchise and Other Service
Taxes Use Taxes Taxes Total
$ 49,741,913 $ 35,786,997 $ 64,250,989 $ 547,027,773
49,207,879 33,521,269 62,532,940 508,701,790
47,416,360 32,699,735 60,020,384 464,517,666
47,560,134 31,254,199 59,576,109 432,542,482
46,311,659 29,490,981 60,395,322 402,773,852
44,698,943 27,737,964 59,322,198 390,266,921
44,650,000 25,803,000 58,046,000 378,772,000
44,882,000 25,988,000 59,427,000 391,622,000
43,122,000 22,666,000 61,968,000 414,967,000
42,824,000 22,567,000 64,010,000 434,295,000
216
Fiscal Year
Ended
September 30,
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
CITY OF MIAMI, FLORIDA
NET ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Real Property
Residential
Property
$ 32,694,764,561
30,510,541,198
27,319,085,749
24,605,804,321
21,934,172,831
20,102,680,659
19,106,566,634
18,536,983,090
23,341,894,079
23,572,178,928
Commercial
Property
$ 18,370,692,628
16,942,681,891
15,141,552,949
13,199,485,300
11,333,504,297
10,558,773,418
10,336,397,326
10,078,997,005
11,921,087,043
11,890,691,413
Source: Miami -Dade Country Property Appraiser's Office.
Personal
Property
$ 2,291,647,844
2,168,086,910
2,141,666,844
2,097,769,007
2,017,164,410
2,074,115,500
1,890,870,077
1,736,766,113
1,686,540,244
1,686,320,651
Net
Assessed
Value
Total
Direct
Tax Rate
$ 53,357,105,033
49,621,309,999
44,602,305,542
39,903,058,628
35,284,841,538
32,735,569,577
31,333,834,037
30,352,746,208
36,949,521,366
37,149,190,992
8.0300
8.2900
8.3351
8.3850
8.4310
8.4710
8.5010
8.6441
8.3335
8.2543
Estimated
Actual
Value
$ 71,868,917,720
66,582,430,165
60,628,790,417
54,280,943,197
44,910,824,446
39,674,594,000
43,557,261,093
42,365,151,484
52,146,883,603
52,185,972,858
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.
Net Assessed
Value as
a Percentage of
Estimated Actual
Value (1)
74.24%
74.53%
73.57%
73.51%
78.57%
82.51%
71.94%
71.65%
70.86%
71.19%
CITY OF MIAMI, FLORIDA
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
City of Miami, Florida Overlapping Rates (1)
South Florida Total
Miami -Dade Miami -Dade Miami -Dade Water Florida Inland Direct and
Fiscal Tax Roll General Debt Total County School Miami -Dade Children's County Library Management Environmental Navigation Overlapping
Year Year Operations Service City Board County Trust System District Projects District Rates
2018 2017 7.58650 0.4435 8.0300 6.9940 5.0669 0.4673 0.2840 0.2659 0.0441 0.0320 21.18420
2017 2016 7.64650 0.6435 8.2900 7.3220 5.0669 0.5000 0.2840 0.2836 0.0471 0.0320 21.82560
2016 2015 7.64650 0.6886 8.3351 7.6120 5.1169 0.5000 0.2840 0.3045 0.0506 0.0320 22.23510
2015 2014 7.64650 0.7385 8.3850 7.9740 5.1169 0.5000 0.2840 0.3294 0.0548 0.0345 22.67860
2014 2013 7.61480 0.8162 8.4310 7.9770 5.1255 0.5000 0.1725 0.3523 0.0587 0.0345 22.65150
2013 2012 7.57100 0.9000 8.4710 7.9980 4.9885 0.5000 0.1725 0.3676 0.0613 0.0345 22.59340
2012 2011 7.57100 0.9300 8.5010 8.0050 5.0900 0.5000 0.1795 0.3739 0.0624 0.0345 22.74630
2011 2010 7.67400 0.9701 8.6441 8.2490 5.8725 0.5000 0.2840 0.5346 0.0894 0.0345 24.20810
2010 2009 7.67400 0.6595 8.3335 7.9950 5.1229 0.5000 0.3822 0.5346 0.0894 0.0345 22.99210
2009 2008 7.67400 0.5803 8.2543 7.7970 5.1229 0.4212 0.3822 0.5346 0.0894 0.0345 22.63610
00
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 government's property owners whose property is located within the geographic boundaries of the special district).
CITY OF MIAMI, FLORIDA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
2018 2009
Percent of Percent of
Total Total
Net City Net Net City Net
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Florida Power and Light 504,536,929 1 0.95% 334,097,704 1 0.90%
Ponte Gadea Biscayne LLC 400,008,202 2 0.75% N/A N/A
Swire Properties 273,900,000 3 0.51% N/A N/A
Oak Plaza Associates (DEL) LLC 248,104,884 4 0.46% N/A N/A
CP Miami Center LLC 210,084,270 5 0.39% N/A N/A
T C 701 Brickell LLC 197,970,911 6 0.37% N/A N/A
MCPP WFC Maami LLC 169,191,000 7 0.32% - N/A N/A
1450 Brickell LLC 165,968,292 8 0.31% 115,064,000 8 0.31%
Brickell Holding LLC 161,590,000 9 0.30% - N/A N/A
Plantation General Hospital 158,737,321 10 0.30% - N/A N/A
Teachers Ins and Annuity Assoc of America - N/A N/A 293,600,000 3 0.79%
200 S Biscayne TIC 1 LLC N/A N/A 304,500,000 2 0.82%
Bellsouth Telecommunications N/A N/A 223,413,742 4 0.60%
Crescent Miami Center N/A N/A 186,100,000 5 0.50%
1111 Brickell Office LLC N/A N/A 154,700,000 6 0.42%
Trustees of L and B N/A N/A 123,900,000 7 0.33%
SHC Chopin Plaza LLC N/A N/A 110,000,000 9 0.30%
Estoril Incorporated N/A N/A 107,400,000 10 0.29%
Total S 2,490,091,809 4.67% 8 1,952,775,446 5.26%
Net Assessed Value- Citywide
Source: Miami -Dade Property Appraiser
$ 53,357,105,033 $ 37,149,190,992
219
Fiscal Year
Ended
S ptember 30,
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
Total Taxes
Levied for
Fiscal Year
$ 407,034,676
390,792,627
353,176,443
315,966,185
281,070,226
262,193,908
252,157,463
258,028,695
319,395,358
309,582,783
ITY OF MIAMI, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Collected within
the Fiscal Year
of Levy
Collections of
Percent Delinquent
Amount of Levy Taxes
$ 384,282,266 94.41% $ 12,965,608
350,970,845 89.81% 12,468,857
320,048,201 90.62% 4,332,986
286,106,822 90.55% 8,045,210
260,389,830 92.64% 6,206,637
251,210,062 95.81% 6,852,822
238,225,003 94.47% 12,048,092
240,648,308 93.26% 20,676,849
275,812,810 86.35% 11,398,150
298,355,830 96.37% 7,537,901
Total Collections
To Date
Amount
$ 397,247,874
363,439,702
324,381,187
294,152,032
266,596,467
258,062,884
250,273,095
261,325,157
287,210,960
305,893,731
Percent
of Levy
97.60%
93.00%
91.85%
93.10%
94.85%
98.42%
99.25%
101.28%
89.92%
98.81%
Note 1: The County Tax Collector does not allocate delinquent taxes collected by the original tax year levied. Consequently,
all collections of delinquent taxes are applied to the immediately prior tax year and, as a result, the percentage for collections
to date may exceed 100%.
220
Fiscal Year
Ended
September 30,
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
CITY OF MIAMI, FLORIDA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities
General
Obligation
Bonds
$ 154,385,000
174,640,000
189,735,000
205,038,304
217,378,253
228,970,771
239,988,415
251,566,791
265,804,455
276,113,503
Special
Obligation and
Revenue
Bonds
$ 461,893,102
455,546,327
451,965,127
468,723,244
479,517,651
441,414,430
407,366,796
418,172,682
358,571,022
199,629,250
Loans
Payable
$ 12,867,726
1,236,279
2,436,000
54,971,864
57,119,793
79,902,293
89,426,363
Premium
Capital (Discounts)
Leases Accretions
$ 36,567,264 $ 4,869,802
30,675,053 6,436,510
10,644,628 8,547,344
12,257,757
21,334,989
23,465,911
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Percent of
Personal Per
Total Income (1) Capita (1)
$ 670,582,894 0.00% 1,393
667,297,890 3.25% 1,426
660,892,099 3.14% 1,449
686,019,305 2.77% 1,561
719,467,172 2.43% 1,723
696,287,112 2.37% 1,682
702,327,075 2.21% 1,758
726,859,266 2.08% 1,820
704,277,770 2.09% 1,763
565,169,116 2.33% 1,559
(1) See the Schedule of Demographic and Economic Statistics on page 226 for personal income and population data.
221
Fiscal Year
Ended
September 30,
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
CITY OF MIAMI, FLORIDA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
General
Obligation
Bonds
$ 154,385,000
174,640,000
189,735,000
205,038,305
217,378,253
228,970,000
239,988,415
251,566,791
265,804,455
276,113,503
Less Amounts
Available in
Debt Service
Fund
$ 9,425,837
5,580,816
3,449,542
1,810,610
3,053,873
3,588,864
1,951,991
336,520
(41,370)
1,496,363
Total
$ 144,959,163
169,059,184
186,285,458
203,227,695
214,324,380
225,381,136
238,036,424
251,230,271
265,845,825
274,617,140
Percentage of
Estimated
Actual Taxable
Value of
Property (1)
0.272%
0.341%
0.418%
0.509%
0.607%
0.688%
0.961 %
0.906%
0.827%
0.702%
Per Capita
(2)
301
361
408
462
513
545
657
693
733
758
Note: Details regarding the City's outstanding debt can be found in the notes to the fmancial statements
(1) See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property on page 213
for property value data.
(2) See the Schedule of Demographic and Economic Statistics on page 222 for population data.
222
CITY OF MIAMI, FLORIDA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF SEPTEMBER 30, 2018
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 $ 1,837,515,000 19.00% $ 349,127,850
Miami -Dade County School Board 954,152,000 19.00% 181,288,880
Subtotal, Overlapping Debt 530,416,730
City of Miami, Florida Direct Debt
(Includes special obligation, revenue bonds, loans, premium
(discount) accretion and capital leases)
670,582,894
Total Direct and Overlapping Debt $ 1200.999,624
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.
223
CITY OF MIAMI, FLORIDA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Debt Limit $ 7,700,217,064 $ 7,144,383,602 $ 6,391,518,217 $ 5,688,668,194 $ 4,990,151,631 $ 4,599,936,687 $ 4,533,761,406 $ 4,383,368,881 $ 5,370,834,055 $ 5,372,349,749
Total Net Debt Applicable to Limit 144,959,163 133,966,888 186,262,069 203,204,305 214,300,991 225,381,907 238,036,415 251,229,541 265,845,455 274,617,503
Legal Debt Margin $ 7,555,257,901 $ 7,010,416,714 $ 6,205,256,148 $ 5,485,463,889 $ 4,775,850,640 $ 4,374,554,780 $ 4,295,724,991 $ 4,132,139,340 $ 5,104,988,600 $ 5,097,732,246
Total Net Debt Applicable to the
Limit as a percentage of Debt Limit
1.88% I.88% 2.91% 3.57% 4.29% 4.90% 5.25% 5 73% 4.95% 5.II%
Net Assesed Value $ 53,357,105,033
Less Homestead Exempt Valuation (2,022,324,607)
Total Assessed Value $ 51,334,780,426
Debt Limit for Bonds
(15% of Total Assessed Value) $ 7,700,217,064
Present Debt Application of Debt Limitation
General Obligation Debt 154,385,000
Less Amount Available in Debt Service
Fund (9,425,837)
Total Net Debt Applicable to Limit 144,959,163
Legal Debt Margin $ 7,555,257,901
FiscalYear
Ended
September 30,
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
CITY OF MIAMI, FLORIDA
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
Ad Valorem
Revenues (1)
$ 397,247,874
363,439,702
324,381,187
294,152,040
266,575,890
258,507,816
250,273,095
261,325,154
287,210,960
304,893,731
Debt Service
Principal
$ 20,255,000
17,145,000
14,908,304
12,339,949
11,592,499
11,017,644
11,578,375
14,237,664
10,309,047
10,335,262
Interest
$ 3,941,109
9,490,770
9,123,918
13,741,375
13,780,696
13,732,200
13,673,035
13,782,766
13,865,476
12,228,340
2x Annual
Debt Service
48,392,218
53,271,540
48,064,444
52,162,648
50,746,390
49,499,688
50,502,820
56,040,860
48,349,046
45,127,204
Coverage (2)
8.21
6.82
6.75
5.64
5.25
5.22
4.96
4.66
5.94
6.76
Note:
(1) 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.
225
Year
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
CITY OF MIAMI, FLORIDA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Population(1)(2)
481,333 $
467,872
456,089
439,509
417,650
413,892
399,457
399,457
399,457
362,470
Personal Income
(Amounts Expressed
in Thousands) (3)
21,680,253
20,724,684
19,021,071
17,492,435
16,506,013
15,522,899
15,113,056
14,738,365
13,178,322
Personal
Income(3)
46,338
45,440
43,278
41,883
39,880
38,860
37,834
36,896
36,357
Median Age (1)
39
39
39
39
39
38
38
38
38
38
Sources:
(1) United States Census Bureau (From FY08 to FY12)
(2) Bureau of Economic Analysis, U.S. Department Commerce (From FY13 to FY18)
(3) Bureau of Economic Analysis, U.S. Department Commerce
(4) Miami -Dade County School Board Budget Office
(5)
School
Enrollment (4)
354,172
356,086
356,480
355,913
349,553
348,230
345,635
347,133
345,458
345,570
Unemployment
Rate (5)
4.1%
4.6%
5.0%
5.5%
5.6%
9.3%
9.9%
11.5%
11.1%
11.1%
Florida Agency for Workplace Innovation, Office of Workplace Information Services, Labor Market Statistics
* FY 2018 Personal Income Information not available
226
Employer
Miami -Dade County Public Schools
Miami -Dade County Employer
Federal Government
Florida State Government
University of Miami
Baptist Health South Florida
American Airlines
Jackson Health System
City of Miami
Florida International University
Publix Super Markets
Miami -Dade College
Total
CITY OF MIAMI, FLORIDA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
2017(1) 2009
Percentage of Percentage of
Total County Total County
Employees Rank Employment Employees Rank Employment
33,477 1 1.3% 50,000 1 2.1%
25,502 2 1.0% 32,000 2 1.4%
19,200 3 0.7% 20,400 3 0.9%
17,100 4 0.6% 17,000 4 0.7%
12,818 5 0.5% 9,874 8 0.4%
11,353 6 0.4% 10,826 6 0.5%
11,031 7 0.4% 9,000 9 0.4%
9,797 8 0.4% 10,500 7 0.4%
4,392 9 0.2%
3,534 10 0.1%
11,000 5 0.5%
6,500 10 0.3%
148,204 5.5% 177,100 7.5%
Sources: The Beacon Council/U.S. Department of Labor -Bureau of Labor Statistics
City of Miami Budget Office
(1) Information is based on data from year 2017. The data for 2018 is not available
as of the date of this report.
227
CITY OF MIAMI, FLORIDA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Number of Employees:
General Government 674 642 608 519 538 540 533 505 538 511
Planning and Development 169 152 138 135 126 124 111 96 102 123
Community Development 35 35 35 38 40 43 43 60 54 55
Public Works 572 573 517 506 452 443 442 442 436 521
Public Safety 2,599 2,580 2,548 2,448 2,338 2,286 2,282 2,283 2,368 2,390
Public Facilities 63 63 54 41 41 42 41 41 41 41
Parks and Recreation 300 301 279 196 192 178 178 182 186 265
Total Number of Employees 4,412 4.346 4,179 3,883 3,727 3,656 3,630 3,609 3,725 3,906
Source: City of Miami, Budget Department
228
Function/Program
Community Development:
Entitlements/Grants Received
CITY OF MIAMI, FLORIDA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
$ 19,401 N/A $ 19.287 $ 19,034 $ 19,239 $ 18,794 $ 24,364 $ 33,491 $ 37,815 $ 26,275
Public Safety:
Police:
Part 1 Crimes - (1) 20,360 23,269 23,043 23,709 25,208 25,898 28,070 27,045 26,097 25,761
Part 1 Arrests - (1) 3,188 2,456 3,239 3,108 3,715 3,837 4,166 4,295 4,393 4,536
Part 2 Arrests - (2) 17,205 17,898 21,732 22,564 27,580 26,329 25,155 22,269 26,670 32,826
Fire:
Number of Fire Calls 15,285 19,090 14,445 13,970 12,736 13,131 15,122 16,686 14,493 10,411
Number of EMS Calls 82,711 86,865 87,977 86,038 83,697 79,544 79,279 81,638 76,747 73,017
Number of Alarms 97,996 105,955 102,422 100,008 96,433 92,675 94,401 98,324 91,240 83,428
Planning and Development:
Certificate of Use Permits Used 25,779 22,018 26,739 21,191 23,399 20,860 20,907 20,775 20,156 22,724
Business Tax Receipts Issued 24,144 21,592 26,661 22,566 33,877 29,686 23,117 22,478 29,548 22,092
Culture and Recreation:
Summer Food Program - Meals Served
(Lunches) N/A N/A N/A N/A 123,925 119,603 98,129 92,737 59,785 N/A
Summer Food Program - Meals Served (Snacks) N/A N/A N/A N/A 123,425 122,512 106,449 87,963 62,983 N/A
Solid Waste:
Refuse Collected (Tons/Day) 709 693 562 693 675 643 586 551 566 N/A
Recyclables Collected (Tons/Day) 45 56 52 39 48 52 14 14 11 N/A
Sources: Various City Departments.
Note: Indicators are not available for the general govemment 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
CITY OF MIAMI, FLORIDA
CAPITAL ASSETS STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/Program 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Public Safety:
Police:
Police Stations 1 1 1 1 1 1 1 1 1 1
Police Sub -Stations 3 3 3 3 3 3 3 3 3 3
Fire:
Fire Stations 15 15 15 15 14 14 14 14 14 14
Solid Waste:
Collection Trucks 170 164 148 141 143 144 144 160 160 N/A
Public Works:
Streets (Miles - Paved) 661.9 661.9 663.2 663.5 663.5 663.8 662.1 662.1 662.1 662.1
Streets (Miles - Unpaved) 0.84 0.84 0.84 0.84 0.84 0.9 1.1 1.1 1.1 1.1
Transportation:
Street Resurfacing (Miles) N/A 23.07 24.0 41.0 27.7 23.7 23.7 18.3 15.8 N/A
Culture and Recreation:
Parks Acreage 1,316 1,316 1,497 936 897 897 897 894 894 894
Parks 145 145 143 131 127 127 127 112 112 112
Swimming Pools 15 15 15 15 15 15 15 15 15 15
Tennis Courts 65 65 61 61 61 61 61 61 61 61
Community Centers 43 43 34 43 35 34 34 34 34 34
Basketball Courts 71 71 71 71 71 71 71 71 71 71
Water Playgrounds 6 6 5 5 4 4 3 2 2 2
Soccer Fields 15 15 15 15 15 15 13 13 13 13
Football Fields 9 9 9 9 9 9 9 9 9 9
Baseball Fields 30 30 30 30 30 30 30 30 30 30
Open Practice Fields 29 29 2 2 2 2 2 2 2 2
Cricket Field - 1 1 1 1 1 1 1
Sources: Various City Departments.
Note: No Capital asset Indicators are available for the general government function.
N/A Information not available
230
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231
About the Cover
View of Downtown Miami
The Finance Department would like to extend a special regognition to
Richard Rios, GSA -Graphics Reproduction Section, for his creativity
with the production of the Comprehensive Annual Financial Report.
City of Miami, Florida Finance Department
444 SW 2 Avenue, 6th Floor Miami, Florida 33130
232
COMPREF- E
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September 30, 2018
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