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ARTHuR NORIsGA+V
CrrY MANAGER
RSMUGLLP
801BrichnUAvenue
SuibeiO5O
Miami, Florida 33131
iNa
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wmM`�omo^3323a°m8
(305)260-6400
In connection with your examination of the City's compliance with Section 218.415, Florida Statutes,
Local Government Investment Policies (the Statute) during the year ended September 3O. 2019. in
accordance with attestation standards established by the American Institute of Certified Public
Accountants, we confirm to the best of our knowledge and belief, the following representations made to
you during the course ofyour engagement:
1. We are responsible for the Chy'ocompliance with the Statute.
2. We are responsible for establishing and maintaining effective internal controlover the Ody's
compliance with the Statute.
3. We have performed an evaluation of the City's compliance with the Statute. Based on our evaluation,
the City has complied with the Statute during the year ended September 30, 2019.
4. There has been no known noncompliance with the Statute during the year ended Geptambor3O.
2O19orthrough the date ofthis letter.
5. There are no known communications from regulatory agencies, internal auditors, or other
pnsoUUonoreooncenningtheCUy'opoosib|enonoomp|ianoewiUltheSbauhenamsivedbyusduhng
the year ended September 3O.2O1Qorthrough the date ofthis letter,
G. VVehave made available to you all documentation related to the Cihy's compliance with the 8haLuha.
7. There has been no knowledge of fraud or suspected fraud affecting the entity involving:
e. Management,
b. Employees who have significant roles in the internal oontro|, or
o. Others where fraud could have a material effect on the City's compliance with the Statute.
8. We acknowledge our responsibility for the design and implementation of programs and controls to
provide reasonable assurance that fraud ioprevented and detected.
G. We have no knowledge of any allegations of fraud or suspected fraud affecting the City received in
communications from employees, former employees, ana/ysts, regulators, or others.
10. We have responded fully to all inquiries made to us by you during your engagement,
11. During the oourme of your engagement, you may have accumulated records containing data, which
should be reflected |nour books and records, All such data have been ooreflected. Accordingly,
copies o/such records inyour possession are nulonger needed byus,
1
The City of Miami, Florida
Arthur Nont
City Manag
Sandra Bridge
Chief Financi
Erica Paschal, CPA
Finance Director
er/Assistant City Manager
Munirat,9anieI, CPA
Assistant Director, Finance
Noel G. Ramos
Controller/ Assistant Director, Finance
Armando J. Blanco
Treasurer/Assistant Director, Finance
2
DocuSign Envelope ID: 10D7C8A3-4AB4-42133-8431-03D37B61700C
Citp of Eliamt, jftortba
ARTHUR NORIEGA V
CITY MANAGER
April 23, 2020
RSM US LLP
801 Brickell Avenue, Suite 1050
Miami, FL 33131
P.O. BOX 330708
MIAMI, FLORIDA 33233-0708
(305) 250-5400
FAX (305) 250-541.0
In connection with your audit of federal awards conducted in accordance with Subpart F of Title 2 U.S.
Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance) and the audit of state projects conducted in
accordance with Chapter 10.550, Rules of the Auditor General of the State of Florida (Chapter 10.550),
for the year ended September 30, 2019 for the City of Miami, Florida (the City), we confirm the following:
1. Management is responsible for complying, and has complied, with the requirements of Uniform
Guidance and Chapter 10.550.
2. Management is responsible for understanding and complying with the requirements of laws,
regulations, and the provisions of contracts and grant agreements related to each of its federal
programs and state projects.
3. Management is responsible for establishing and maintaining, and has established and maintained,
effective internal control over compliance for federal programs and state projects that provides
reasonable assurance that the auditee is managing federal awards and state projects in compliance
with laws, regulations, and the provisions of contracts or grant agreements that could have a
material effect on each federal program and state project.
4. Management has prepared the schedule of expenditures of federal awards and state financial
assistance in accordance with Uniform Guidance and Chapter 10.550, which represents and
includes all the grant activity of the reporting entity of the City and has included expenditures made
during the period being audited for all awards provided by federal and state agencies in the form of
grants, cost -reimbursement contracts, loans, loan guarantees, property (including donated surplus
property), cooperative agreements, interest subsidies, insurance, food commodities, direct
appropriations, and other assistance.
5. Management has identified and disclosed to the auditor the requirements of laws, regulations, and
the provisions of contracts and grant agreements that are considered to have a direct and material
effect on each major program or project.
6. Management has made available all federal and state awards (including amendments, if any) and
any other correspondence relevant to federal and state programs and related activities that have
taken place with federal and state agencies or pass -through entities.
7. Management has identified and disclosed to the auditor all amounts questioned and all known
noncompliance with the direct and material compliance requirements of federal and state awards,
when applicable.
1
DocuSign Envelope ID: 10D7C8A3-4AB4-42B3-8431-03D37B61700C
8. Management believes that the auditee has complied with the direct and material compliance
requirements.
9. Management has made available all documentation related to compliance with the direct and
material compliance requirements, including information related to federal and state program
financial reports and claims for advances and reimbursements.
10. Management has provided to the auditor its interpretations of any compliance requirements that are
subject to varying interpretations.
11. Has provided views on the auditor's reported findings, conclusions and recommendations, as well as
management's planned corrective actions, for the report, when applicable.
12. Management has disclosed to the auditor any communications from grantors and pass -through
entities concerning possible noncompliance with the direct and material compliance requirements,
including communications received from the end of the period covered by the compliance audit to
the date of the auditor's report, when applicable.
13. Management has disclosed to the auditor the findings received and related corrective actions taken
for previous audits, attestation engagements, and internal or external monitoring that directly relate
to the objectives of the compliance audit, including findings received and corrective actions taken
from the end of the period covered by the compliance audit to the date of the auditor's report.
14. Management has provided the auditor with all information on the status of the follow-up on prior
audit findings by federal and state awarding agencies and pass -through entities, including all
management decisions.
15. Management is responsible for taking corrective action on audit findings of the compliance audit.
16. Management has disclosed the nature of any subsequent events that provide additional evidence
with respect to conditions that existed at the end of the reporting period that affect noncompliance
during the reporting period.
17. There are no known instances of noncompliance with direct and material compliance requirements
occurring subsequent to the period covered by the auditor's report.
18. There are no changes in internal control over compliance or other factors that might significantly
affect internal control, including any corrective action taken by management with regard to significant
deficiencies and material weaknesses in internal control over compliance subsequent to the period
covered by the auditor's report.
19. Federal and state program financial reports and claims for advances and reimbursements are
supported by the books and records from which the basic financial statements have been prepared.
20. The copies of federal and state program financial reports provided to the auditor are true copies of
the reports submitted, or electronically transmitted, to the federal and state agency or pass -through
entity.
21. Management has monitored subrecipients to determine that they have expended pass -through
assistance in accordance with applicable laws and regulations and the terms and conditions of the
subaward and have met the other pass -through entity requirements, of the Uniform Guidance and
Chapter 10.550.
22. Management has issued management decisions for audit findings that relate to federal and state
awards it makes to subrecipients, and for federal awards, such management decisions are issued
within six months of acceptance of the audit report by the FAC. Additionally, management has
followed up to ensure that the subrecipient takes timely and appropriate action on all deficiencies
detected through audits, on -site reviews and other means that pertain to the federal and state award
provided to the subrecipient from the pass -through entity.
2
DocuSign Envelope ID: 10D7C8A3-4AB4-42B3-8431-03D37B61700C
23. Management has considered the results of subrecipient monitoring and audits, and has made any
necessary adjustments to the auditee's own books and records.
24. Management has charged costs to federal and state awards in accordance with applicable cost
principles, Uniform Guidance and Chapter 10.550.
25. Management will accurately complete the appropriate sections of the data collection form. We
further acknowledge our responsibility for the complete, accurate, and timely filing of the data
collection form with the Federal Audit Clearinghouse.
26. Management has disclosed all contracts or other agreements with service organizations.
Management is not aware of any communications from service organizations relating to instances of
noncompliance at those organizations.
27. During the course of your audit, you may have accumulated records containing data that should be
reflected in our books and records. All such data have been so reflected. Accordingly, copies of such
records in your possession are no longer needed by us.
City of Miami, Florida
,—.DocuSigned by:
av� Nevic y.
ISk5eeC4r¢S44.A1.
Arthur Noriega V
City Manager
DocuSigned by:
C146A, iA
21BOOACA63EA1C6.,.
Erica Paschal, CPA
Finance Director
DocuSigned
.Oby:-
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Munirah Daniel, CPA
Assistant Finance Director
rNDocuSigned by:
ati }�ouMbS
61B7nrF01D6217D...
Noel Ramos
Controller / Assistant Finance Director
r--DocuSigned by:
N. OB13201663861g ...
Armando J. Blanco
Treasurer / Assistant Finance Director
3
,- DocuSigned by:
.Sa.,d -a 6n4iae1+,.ati
npnooraan FF
Sandra Bridgeman, CPA
Assistant City Manager / CFO
i DocuSigned by:
'`- 06081BD1Eg26120...
George Mensah
Community & Economic Development Director
,—DocuSigned by:
CD6107C189r011 3...
Joseph Zahralban
Fire Chief
,--DocuSigned by:
tebtiuta P -
i f 1M1Bf6DCE2118...
Ronald Papier
Police Deputy Chief
E^—DocuSigned by:
Sxwti. C W; l 40.4 4.
�'--76BC ff1 I yME4...
Steven Williamson
Office of Capital Improvements Director
City of Miami, Florida
Report to the Honorable Mayor, Members of the City
Commission and Members of the Audit Advisory
Committee
Fiscal Year Ended September 30, 2019
THE POWER OF BEING UNDERSTOOD
AUDIT I TAX CONSULTING
RSM
April 23, 2020
To the Honorable Mayor, Members of the City Commission
and Members of the Audit Advisory Committee
City of Miami, Florida
RSM US LLP
801 E3rickcll Avenue
Suite 1050
f
' 1 �'�Igfi111, FL >„1,i r
0 +1 305.442 8801
+1 305 442 7478
WWw.ISM u;.com
Attention: Honorable Mayor, Members of the City Commission and Members of the Audit Advisory
Committee
We are pleased to present this report related to our audit of the basic financial statements of the City of
Miami, Florida (the "City") for the year ended September 30, 2019. In connection therewith, we have also
issued separate reports on internal control over financial reporting and on compliance and other matters,
a report on compliance for each major federal program and state project, a management letter in
accordance with the rules the Florida Auditor General, and an attestation report on compliance with
Chapter 10.550, Rules of the Auditor General of the State of Florida, relating to the City's compliance with
Section 218.415, Florida Statutes, Local Government Investment Policies. This report summarizes certain
matters required by professional standards to be communicated to you in your oversight responsibility for
the City's financial reporting process.
This report is intended solely for the information and use of the Mayor, Members of the City Commission,
Members of the Audit Advisory Committee and management of the City, and is not intended to be, and
should not be used by anyone other than these specified parties. It will be our pleasure to respond to any
questions you have about this report. We appreciate the opportunity to continue to be of service to the
City.
THE POWER OF BEING UNDERSTOOD
AUDIT I TAX I CONSULTING
tiS 1, the. t.: .a rrs,.. !:.,r,r.4 zd >.<s. e <i..t .. ,€a„.a.,.f s,���s.,�Ki at,&i;ri ,.:r� tauoiC?e. ,. rt sa ,.:::ii €! r{r:. 'i>.inlre •.
Contents
Required communications 1-2
Summary of accounting estimates 3-4
Exhibit A —Significant written communications between management and our firm
Representation letters
Required Communications
Generally accepted auditing standards (AU-C 260, The Auditor's Communication With Those Charged
With Governance) require the auditor to promote effective two-way communication between the auditor
and those charged with governance. Consistent with this requirement, the following summarizes our
responsibilities regarding the basic financial statement audit as well as observations arising from our audit
that are significant and relevant to your responsibility to oversee the financial reporting process.
Area
Our Responsibilities With
Regard to the Financial
Statement Audit
Overview of the Planned
Scope and Timing of the
Financial Statement Audit
Accounting Policies and
Practices
Comments
Our responsibilities under auditing standards generally accepted in
the United States of America and Government Auditing Standards,
issued by the Comptroller General of the United States, have been
described to you in our audit agreement letter dated July 29, 2019.
We have issued a separate communication regarding the planned
scope and timing of our audit and have discussed with
management our identification of and planned audit response to
significant risks of material misstatement.
Preferability of Accounting Policies and Practices
Under generally accepted accounting principles, in certain
circumstances, management may select among alternative
accounting practices. In our view, in such circumstances,
management has selected the preferable accounting practice.
Adoption of, or Change in, Accounting Policies
Management has the ultimate responsibility for the appropriateness
of the accounting policies used by the City. The City adopted the
recognition and disclosure requirements of the following
Governmental Accounting Standards Board (GASB) Statements in
the current year:
• GASB Statement No. 83, Certain Asset Retirement
Obligations
• GASB Statement No. 88, Certain Disclosures related to
Debt, including Direct Borrowings and Direct Placements
The City did not adopt any additional new significant accounting
policies, nor have there been any significant changes in existing
accounting policies during the current period.
Significant or Unusual Transactions
We did not identify any significant or unusual transactions or
significant accounting policies in controversial or emerging areas for
which there is a lack of authoritative guidance or consensus.
Management's Judgments and Accounting Estimates
Summary information about the process used by management in
formulating particularly sensitive accounting estimates and about
our conclusions regarding the reasonableness of those estimates is
in the attached Summary of Significant Accounting Estimates
section.
1
Area
Audit Adjustments
Uncorrected Misstatements
Disagreements with
Management
Significant Issues
Discussed with
Management
Significant Difficulties
Encountered in Performing
the Audit
Letter Communicating
Significant Deficiencies and
Material Weaknesses in
Internal Control over
Financial Reporting
Certain Written
Communications between
Management and Our Firm
Comments
There were no audit adjustments made to the original trial balance
presented to us to begin our audit.
There were no uncorrected misstatements other than
misstatements that are clearly trivial.
We encountered no disagreements with management over the
application of significant accounting principles, the basis for
management's judgments on any significant matters, the scope of
the audit, or significant disclosures to be included in the basic
financial statements.
There were no significant issues arising from the audit that were
discussed or were the subject of correspondence with
management.
We did not encounter any significant difficulties in dealing with
management during the audit.
We have issued, under separate cover, the following reports in
connection with our audit, as required by the Government Auditing
Standards, Uniform Guidance and Chapter 10.550, Rules of the
Auditor General of the State of Florida:
• 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 Major 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
• Management Letter Required by Chapter 10.550, Rules of the
Auditor General of the State of Florida.
• Independent Accountant's Report in Accordance with Chapter
10.550, Rules of the Auditor General of the State of Florida,
relating to the City's compliance with Section 218.415, Florida
Statutes, Local Government Investment Policies
Copies of material written communications between our firm and
the management of the City, including the Representation Letters
provided to us by management, are attached as Exhibit A.
2
Summary of Significant Accounting Estimates
Accounting estimates are an integral part of the preparation of financial statements and are based upon
management's current judgment. The process used by management encompasses their knowledge and
experience about past and current events and certain assumptions about future events. You may wish to
monitor throughout the year the process used to determine and record these accounting estimates. The
following describes the significant accounting estimates reflected in the City's September 30, 2019 basic
financial statements.
Estimate
Risk
Management
Accounting for
Pension Plans
and the Related
Net Pension
Liabilities
Accounting Policy
The City is self -insured
for general, auto liability,
workers' compensation
and employee health.
The liability for the
amount of claims
represents an estimate of
the eventual loss on
claims including claims
incurred but not yet
reported.
Annual required
contributions, net pension
liabilities and related
pension amounts are
actuarially determined in
accordance with the
parameters established
by the GASB. The
difference between total
pension liabilities and the
Plans Fiduciary Net
Positions at the Plans
measurement dates and
any associated deferred
outflows/inflows of
resources as of period
ended are recognized in
governmental activities.
Management's
Estimation Process
The City utilizes the
services of an actuary
to assist in developing
loss estimates based
on historical
experience, open
incidents and recent
trends. Management
approved the results of
the actuarial
determination.
City management
and/or the pension
Plans' management,
with input from its
actuary, developed the
actuarial assumptions
based on relevant
criteria. City
management reviewed
and approved the
financial statement
estimates derived from
the pension Plans'
actuarial reports.
3
Comments
We have audited the
underlying data supporting
the estimate and reviewed
management's
methodology which
appears properly and
consistently applied and
have deemed the resulting
estimate to be reasonable.
We have also assessed
the overall reputation and
competency of the City's
actuary in order to place
reliance on their work.
We have audited the
underlying data supporting
the estimate and reviewed
management's
methodology which
appears properly and
consistently applied and
have deemed the resulting
estimate to be reasonable.
We have also assessed
the overall reputation and
competency of the City's
actuary in order to place
reliance on their work.
The Pension Plans are
audited by other auditors.
We have placed reliance
on the other auditors for
purposes of financial
statement presentation
and disclosures.
Estimate
Allowance for
Doubtful
Accounts
Accounting for
Other Post -
Employment
Benefits
Accounting Policy
All trade and other
receivables are reported
net of an allowance for
uncollectible amounts to
arrive at the net realizable
value.
The total other post -
employment benefits
(OPEB) liabilities, related
deferred OPEB amounts
and expenses are
actuarially determined in
accordance with the
parameters established
by the GASB.
Management's
Estimation Process
Receivables are
analyzed for their
collectability based on
the terms and
conditions stated in
individual agreements.
In addition to
receivables specifically
identified as
uncollectible, a general
allowance is calculated
based on the City's
historic experience.
Management with input
from its OPEB actuary
developed the actuarial
assumptions based on
relevant criteria.
Management reviewed
and approved the
financial statement
estimates derived from
the OPEB actuarial
reports.
4
Comments
We have audited the
underlying data supporting
the estimate and the
resulting estimate appears
to be reasonable.
We have audited the
underlying data supporting
the estimate and reviewed
management's methodology
which appears properly and
consistently applied and
have deemed the resulting
estimate to be reasonable.
We have also assessed the
overall reputation and
competency of the City's
actuary in order to place
reliance on their work.
Exhibit A —Material Written Communications Between
Management and Our Firm
Q'��°
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ARTwmR NmRIseA, V
CITY MANAGER
R8MUGLLP
801 Briche|Avenue, Suite 1O5O
Miami, FL33131
puBOX 33070a
MIAMI, F-LvRV^,93233-070^
(305)260*400
This representation letter is provided in connection with your audit of the basic financial statements of City
ofMiami, Florida (the City) aoofand for the year endedSeptember 30.2O1Qfor the purpose of
expressing opinions on whether the financial statements are presented faidy, in all material nospeots, in
accordance with accounting principles generally accepted in the United States of America (U.S. GAAP).
Weconfirm, tothe best ofour knowledge and belief, that eeofthe date ofthis letter:
Financial Statements
1. VVehave fulfilled our responsibilities, aoset out inthe terms ofthe audit arrangement letter dated
July 29, 2019, for the preparation and fair presentation of the financial statements referred to above
inaccordance with U.S.QAAP.
2. We acknowledge our responsibility for the design, implementation and maintenance of internal
control relevant to the preparation and fair presentation of financial statements that are free frorn
material misstatement, whether due to fraud or error.
3, We acknowledge our responsibility for the design, implementation and maintenance of internal
control to prevent and detect fraud.
4. Significant assumptions used by us in making accounting estimates, including those measured at
fair value, are reasonable and reflect our judgment based on our knowledge and experience about
past and current events, and our assumptions about conditions weexpect to exist and courses cf
action weexpect hotake.
5. Related -party transactions, including those with component units for which the City is accountable,
other organizations fovwhiohdhenmbuveandsignificanuecftheirnekabonmhipwiththeCdyneouoh
that exclusion would cause the reporting City's financial statements to be misleading or incomplete,
and inbyrfundtranoaotionn; including interfundaccounts and advances receivable and peyab|e, ao|e
and purchase transactions, inbarfund transfers, long-term loans, leasing arrangements, and
guarantees, have been recorded in accordance with the economic substance of the transaction and
appropriately accounted for and disclosed in accordance with the requirements of U.S GAAP.
G. All events subsequent hothe date ofthe financial statements, and for which U.G.G/AJzrequires
adjustment or disclosure, have been adjusted or disclosed,
7, The effects ofall known actual o/possible litigation and claims have been accounted for inthe
City'aself-insurance program, as estimated byour actuary, maccounted for as other estimated
losses in the City's financial statements and disclosed in accordance with U.S. GAAP.
G. There are no unasserted claims or assessments that our legal advisors have advised us are
probable nfassertion and must bedisclosed inaccordance with GAGBStatement No,1Oand
No. 62.
S. We have disclosed to you all known actual orpossible litigation and claims whose effects should be
considered when preparing the financial statements.
10. VVehave properly estimated liabilities pertaining hopollution remediationactivities and reported
such amount in the financial statements,
11. Wehave nodirect mindirect legal or moral obligation for any debt of any organization, publicm
private, or to special assessment bondholders that is not disclosed in the financial statements.
Information Provided
12. Wehave provided you with:
a, Access toall information ofwhich weare aware that iorelevant tuthe preparation and fair
presentation of the financial statements such as records, documentation and other matters;
L Additional information that you have requested from uofor the purpose cf the audit;
u, Unrestricted access to persons within the entity from whom you determined it necessary to
obtain audit evidence; and
d. Minutes of the meetings of the governing boards and committees, or summaries of actions of
recent meetings for which minutes have not yet been prepared.
13. All transactions have been recorded in the accounting records and are reflected in the financial
statements.
14, VVehave assessed the risk that the financial statements may bematerially misstated aoaresult of
fraud. However, nomatters were identified that should bereported huyou.
15� VVehave noknowledge ofmUegeUonaofhaudorsuspected �audaffecting the enUty'oDnanoia}
' statements involving:
a. Management.
b. Employees who have significant roles ininternal control.
c. Others where the fraud could have amaterial effect onthe financial statements.
16, We have no knowledge of any allegations of fraud or suspected fraud affecting the entity's financial
statements received incommunications from employees, former employees, analysts, regulators,
or others.
17 We have noknowledge of noncompliance or suspected noncompliance with laws and regulations
whose effects were considered when preparing the financial statements,
18. We have disclosed to you the identity of the entity's related parties and all the related -party
relationships and transactions of which we are aware,
19. We agree with the findings of specialists in evaluating our estimated liabilities for self-insurance,
other post -employment benefit obligations (DPEB)and the net pension liability and related costs of
the City. We have adequately considered the qun||fiuoUone of the specialists in determining the
amounts and disclosures used in the financial statements and underlying accounting records. We
did not give or cause any instructions to be given to specialists with respect tothe values or
amounts derived in an attempt to bias their work, and veare not otherwise aware ofany matters
that have had an impact on the independence or objectivity of the specialists.
20VVebelieve that the actuarial assumptions and methods used homeasure the ChY'sself-insurance
liability, other benefit obligations (]PEB).and the net pension liabilities and
related costs for financial accounting purposes are appropriate in the circumstances.
21. VVeare not aware cf significant deficiencies, including material weaknesses, inthe design or
operation ofinternal controls that could adversely affect the Cdy'sability bzrecord, process,
summarize and report financial data.
22,Weare not aware of any communications from regulatory agencies concerning noncompliance
with, nrdeficiencies in, financial reporting practices.
23. We have properly implemented the recognition and disclosure requirements of GASB Statements
No. 88.Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements,
24. We have evaluated the recognition and disclosure requirements of GASB 83, Certain Asset
Retirement Obligations and concluded that there are no legally enforceable liabilities associated
with the retirement of tangible capital assets to be accrued by the City for the year ended
September 30'2019.
25. We have properly disclosed the GASB standards issued and not yet adopted, in the notes to the
financial statements, VVohave not yet determined the effect these statements will have onthe City'o
financial statements,
2G.VVehave performed anevaluation ofthe C investment policy.
Based on our evaluation, the City has complied with the established investment policy during the
year ended September 30.20iS.
27. Management has properly determined onddioclooedcreditdsk,ountodia|onadithok.00ncenUratioms
ofcredit risk, interest rate risk and foreign currency risk, mmapplicable, for the City and each ofits
individual pension plans.
28. Management has assessed the coUectabUity of the amounts submitted for reimbursements to the
Federal Emergency Management and based onthe current status cf the claims
and communication with the Florida Department of Emergency Management (FDEM), management
believes that all amounts submitted for reimbursement will be collected. Furthermore, management
represents that expenditures submitted for reimbursements to the FDEM are qualifying
expenditures ofthe FEK4Agrant program.
29. Individual fund deficits reported as of the year ended September 30, 2019 will be fundedleliminated
in future periods,
30, During the course ofyour audit, you may have accumulated records containing data that should be
reflected in our books and records. All such data have been so reflected. Accordingly, copies of
such records in your possession are no longer needed by us.
Supplementary Information
31. Wth respect to supplementary information presented inrelation tothe financial statements osm
a, We acknowledge our responsibility for the presentation ofsuch information.
t.VVe believe such information, including its form and content, is fairly presented in accordance
with US.GAAP
c. The methods of measurement or presentation have not changed from those used in the prior
period.
d. When supplementary information is not presented with the audited financial statements, we will
make the audited financial statements readily available to the intended users of the
supplementary information no later than the date of issuance of the supplementary information
and the auditor's report thereon.
32. With respect to Required Supplementary Information presented as required by the Governmental
Accounting Standards Board to supplement the basic financial statements:
a. We acknowledge our responsibility for the presentation of such required supplementary
information.
b. We believe such required supplementary information is measured and presented in
accordance with guidelines prescribed by U.S. GAAP.
c. The methods of measurement or presentation have not changed from those used in the prior
period.
Compliance Considerations
In connection with your audit, conducted in accordance with Government Auditing Standards, we confirm:
33. We are responsible for:
a. Compliance with the laws, regulations, and provisions of contracts and grant agreements
applicable to the City.
b. Establishing and maintaining effective internal control over financial reporting.
34. We have identified and disclosed to you:
1. All laws, regulations, and provisions of contracts and grant agreements that have a direct
and material effect on the determinations of financial statement amounts or other financial
data significant to audit objectives.
2. There are no violations (and possible violations) of laws, regulations, and provisions of
contracts and grant agreements whose effects should be considered for disclosure in the
auditor's report on noncompliance.
35. We are not aware of any fraud, illegal acts, violations of provisions of contracts or grant
agreements, or abuse that has been reported
36. We have a process to track the status of audit findings and recommendations.
37. We have identified for you previous audits, attestation engagements, performance audits, or other
studies related to the objectives of the audit being undertaken and the corrective action taken to
address significant findings and recommendations.
38. We have provided you with our views on your reported findings, conclusions, and
recommendations, as well as our planned corrective actions for the report.
39. Management has assessed the collectability of the amounts submitted for reimbursements to the
Federal Emergency Management Agency (FEMA) and based on the current status of the claims
and communication with the Florida Department of Emergency Management (FDEM),
management believes that all amounts submitted for reimbursement will be collected.
Furthermore, management represents that expenditures submitted for reimbursements to the
FDEM are qualifying expenditures of the FEMA grant program.
4
The City of Miami, Florida
Arthur Iariega"
City Manager
andra`Bridgeman
Chief Financial Off
f
Erica Paschal, CPA
Finance Director
Munir h Daniel, CPA
Assist nt Director, Finance
Noel G. Ramos
Controller/ Assistant Director, Finance
Armando J. Blanco
Treasurer/Assistant Director, Finance
5
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• L.-11
‘,0 (.11
VP
Draft (1) 02-28-2020
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COMPREHENSIVE ANNUAL
FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2019
Prepared By:
The Fina, i e Department
Erica T. Paschal, CPA
Director
Munirah Daniel, CPA
Assistant Director
Noel G. Ramos
Controller /
Assistant Director
Armando Blanco
Treasurer /
Assistant Director
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City of Miami, Florida
Comprehensive Annual Financial Report For
the Fiscal Year Ended September 30, 2019
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
Draft (1) 02-28-2020
Required Supplementary Information:
Budgetary Comparison Schedules of Revenues, Expenditures and Changes in Fund Balances:
General Fund 146
Notes to Required Supplementary Information 147
Pension Schedules:
Schedule of Changes in the Total OPEB Liability and Related Ratios 148
Schedule of Changes in the Net Pension Liability and Related Ratios 150
Schedule of Employer Contributions 155
Schedule of Investment Returns 160
Combining and Individual Fund Financial Statements and Schedules:
Nonmajor Governmental Funds:
Combining Balance Sheet 166
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 173
Budgetary Comparison Schedules:
Special Revenue Funds:
OMNI Community Redevelopment Agency (OMNI) Fund 180
Midtown Community Redevelopment Agency (Midtown) Fund 181
Southeast Overtown Park West Community Redevelopment Agency (SEOPW) Fund 182
Homeless Program Fund 183
Community Development Fund 184
Choice Housing Vouchers (Section 8) Fund 185
State Housing Initiatives Program (SHIP) Fund 186
Convention Center Fund 187
Economic Development & Planning Services Fund 188
Net Offices Fund 189
Parks and Recreations Fund 190
Police Services Fund 191
Law Enforcement Trust Fund 192
Public Works Services Fund 193
City Clerk Services Fund 194
Emergency Services Fund 195
Fire Rescue Special Revenue Fund 196
General Special Revenue Fund 197
Department Improvement Initiatives Fund 198
Transportation & Transit Fund 199
Miami Ballpark Parking Facilities Fund 200
Liberty City Revitalization Trust 201
Virginia Key Beach Trust 202
Solid Waste Recycling Trust 203
Debt Service Funds:
General Obligation Bonds Fund 204
Special Obligation Bonds Funds 205
ii
Draft (1) 02-28-2020
SEOPW Special Obligation Bonds Fund 206
Fiduciary Funds:
Combining Statement of Fiduciary Net Position 208
Combining Statement of Changes in Fiduciary Net Position 209
STATISTICAL SECTION
Financial Trends:
Net Position by Component 211
Changes in Net Position 212
Governmental Activities Tax Revenues by Source 213
Fund Balances - Governmental Funds 214
Changes in Fund Balances - Governmental Funds 215
Revenue Capacity:
General Government Tax Revenues by Source 217
Net Assessed Value and Estimated Actual Value of Taxable Property 218
Property Tax Rates — Direct and Overlapping Governments 219
Principal Property Taxpayers 220
Property Tax Levies and Collections 221
Debt Capacity:
Ratios of Outstanding Debt by Type 222
Ratios of General Bonded Debt Outstanding 223
Direct and Overlapping Governmental Activities Debt 224
Legal Debt Margin Information 225
Pledged Revenue Coverage 226
Demographics and Economic Information:
Demographics and Economic Statistics 227
Principal Employers 228
Operating Information:
Full -Time Equivalent City Government Employees by Function 229
Operating Indicators by Function 230
Capital Assets Statistics by Function/Program 231
iii
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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
Draft (1) 02-28-2020
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 Casamayor
Code Compliance I
Human Services
1
Innovation and
Technology
Neighborhood
Enhancement Team
i
Real Estate and Asset
Management
Solid WasteMI
Coconut Grove BID
Downtown
Development
Authority
Liberty City Trus"
Wynwood BID
Assistant City Manager
Chief Financial Officer
Sandra Bridgeman, CPA
Finance
General Services 11)
Administration
Grants Administration
Housing and Community
Development
Management and Budget
Procurement
ma
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
Nzeribe Ihekwaba, Ph.D., PE
— Building
k
Capital Improvements
Parks and Recreation
Planning
l
Resilience and
Public Works
Resilience and
Sustainability
I
Zoning
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
Civil Service
4
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March XX, 2020
To the Honorable Mayor, Members of the Commission, and Citizens of the City ol, Florida:
We are plead to present the City ofMiami, Florid, ("the City') Comprehensive Annual Financial
Report ("CAFR" as of andfor the fiscal year ended September 30,8. The financial 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 LIT, Certified Public Accountants, have issian unmodified("clean') opinion on the
City's basic financial statemei as of an for the fiscal year ended September 30, 8. The
independent auditor's report is located at the front ofthe financial section of this report.
The management's discussion and analysis (`MVV ID&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 intenhttp://www.miamigov.com/finann.
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. Now22 years old, the City is part of the natioieightl 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 approxim481,33:
residents according to tlBureau of Economic and Business Research, University of F, 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 tl4 municipalitie, that make up Miami -Dade
Count).
The City Charter was adopted by the electors ofthe 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, Floithe County'). The
County is, in effect, a municipality with governmental powers affecting thirty-five , including
the City and unincorporated arf The County has not displaced nor replaced the cities' powers but
supplements them. The County can take cactivitieof the City's operations if the services fall
below minimum standards set by the County Commission, or with the consent of the governing body
of the City. Accordingly, the County's financial statements are not included in this report.
Draft (1) 02-28-2020
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 lyears on a non -partisan baCandidates 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 Mayoited at large every
four years.
As official head of the City, the Mayor has veto authority over actions of the CommHowever,
the Commission can override a mayoral vetcfour-fifths of all Commissioners present votes in
favor ofa resolution to override a mayoral vE The Commission action in question shall be deemed
enacted or adopted and effective in accordance with its terms; otherwise, the 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 financial 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 maintenai 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 financial statements because of the nature and
significance of their relationship with the City. Additional informationall 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
anytime between one to three months preceding the beginning ofthe 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' preceding the beginning of the fiscal year on Octos'. r 1
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.
Draft Oh) 2-28-2Q20
The major phases of the budget process are detaile Notes te equire Supplementary
Information Section of this report.
Local Economic Condition and Outlook
With one of the tallest skylines in the United Stathe City of Miami is the heart of South Florida
and is a global leader in terms of multicultural growth and business developlt is the most
populous city in the Miami metropolitan a and is ranked' in the U.S. for business activity,
human capital, information exchanges, cultural experience and political engagement. With the
tropical climate and its close vicinity PortMiam and Miami International Airport, tourism is a
majo] component of the ity's economy. Furthermore, Miami is home to one of the largest
concentration of international banks, with majority of the baibeing ir the Miami Brickell area.
Local unemployment continues a steady decline from the previoi with Miami reporting a 3.3
percent unemployment rate as of September which is a decrease frc 4.6 percenreporteda
year ago.A good business climate has been created for the South Florida economy, encouraging
growth in construction, motion pictures, financial 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 percfin September 218, to $360,000. Condominiums
median sales price increased 1.3 percent to $237,000 from $2in September 20 . 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 monthl
report released by the Miami Association of Realtors. Miami has experienced nearly seven
consecutive years of price appreciation. Low mortgage continue to make purchasing a home
more affordable.
Moody's Investors Servicupgradecthe City's general obligation limited tax ratirfrom Al to Aa2
in March 2018 due to its strong finam 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 1V.Worldcente, which recently
opened its first tower to welcome new resideThe MiamiWorldcente projec located just north c
downtown Miami is a 27-acre mixed -use development covering 10 blocks. The center will
up to 450,000 square feet of retail, 2,000 residential units, 1,700 hotel rooms, 500,000 squa
exposition space and 100,000 square feet of parks and public The projeclis within walking
distance of All Aboard Florida's Central Station, a Brightline train transport riders from For
Lauderdale to Miami in 28 minus; which also spur additional developml in the City.
include
re feet of
Brightline is part of the newly built 11-acrex-useMiamiCentra development. lis in the heart of
Downtown Miam. MiamiCentra spans over six downtown City blocks afeature retail shops
rental residences and a transit hub providing both local and multi -city transit oMiamiCentra
offers a way to connect with Miami's most popular transportation systems. With Metrorail,
Metromove, 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.
Draft (1) 02-28-2020
Local Government Financial Trend
The table below summarizes and compares General Fund revenues and expenditures and transfer
over the last four fiscal years. Some of the reasons for these trends are actions taken by the City an(
discussed further in this letter under the he aol Long -Term Financial Planning.
Summary of General Fund Financial Results
by fiscal year
2019 2018 2017 2016
Revenues and Transfers In $ 788,115,640 $ 745,204,594 $ 706,823,792 $ 643,541,725
Expenditures and Transfers Out 776,059,823 717,884,461 678,201,723 659,425,088
Net Change in Fund Balance 12,055,817 27,320,133 28,622,069 15,883,363
Beginning Fund Balance 187,463,551 160,143,418 131,521,349 147,404,712
Ending Fund Balance $ 199,519,368 $ 187,463,551 $ 160,143,418 $ 131,521,349
Employment & Wealth Demographics
The following information was reported by the Bureau of Labor Statistics and the United States
Census Buren. The table provides Miami demographics compared to the State of Florida and the
United States.
Unite d
Miami Florida States
Unemployment Rate 3.3% 3.4% 3.8%
Median Household Income $ 33,999 $ 50.883 $ 57,652
Persons Below Poverty Level 25.8% 140% 12,3%
High School Graduate or Higher 75.6% 876% 87,3%
Bachelor's Degree or Higher 26.3% 28.5% 30,9%
Draft (1) 02-28-2020
Tourism
Miami is a majoitourism hub and ranks second in the nation, after New York City, for international
visitors. The City holds majornnual events that attract visitors from across the country and. world
These annual eveninclude theMiami Open,Miami MarathonArt Basel,Miami International Boat
Show, CalleOchc Festiva, Bayfront Park New Year's Eve Celebrai, 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 Airpoir IVIIA ") is operated by the Miami -Dade Aviation Department and
is property of the Miami -Dade County governmeMIA reported a total c449 million passengers
for fiscalyeai 201�, representinla 2.7% increase from the 43.7 million passengers reported in fiscal
year 201 i MIA remains the premier international gateway to Ft welcoming 60 percent of all
international visitors to Florida. In addition, MIA offersore flights to Latin America and the
Caribbean than any other 1 airport any serves as the countries number one airport for international
freight, transporting a total of2.3 million tons in fiscal year 2018.
PortMiami
PorMiami, ("the Port') known as the Cruise Capital of The Woi," is operated by the Seaport
Department of Miami -Dade County. The Port continues to be the world's busiest cru andlort
serves a a hub for Caribbean and Latin American comm. The Porlis among America's busiest
ports and recognized as a global gateMThe Port is important tdMiami Dade County and
surrounding are,, contributingmore tha $43 billion in economic activit}and generatin;334,50(
direct, indirect and induced jc.bs
The Poi includes seven cruise terminals that have been designed to quickly move passengers from
land to seaThe Poi is the closesU.S East CoasDeepwate container port to the Panama Canal,
providing shippers fast access to the entire U.S. m 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) activit:r.
Long -Term Financial Planning and Major Initiatives
To stabilize the financial 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.
Draft (1) 02-28-2020
Financing
During FY20:8, the City successfulhpartiallyrefundei the $59.3 million Special Obligation Bond,
Series 2011E The City alscpartially refunde the $16.6 million Taxable Special Obligat, Special
Obligation Boni Series2010B and $7.2 millioiTaxable Pensio:Special Obligation Bor, Series
200S. In additior, the Cityobtaineda $11.3 million Lease from Santander Bank, IN to replace
police fleet vehicle, $373.9 thousand lease from Dell Financto upgradetechnology equipment,
anc, $2.3 million loan frog the State of Florida fi the Wagner Creek Seybold Canal Pro 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 201 fThe City Commission approved a prod list of projects for
the first tranchi in the tota 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 missionhe City of Miami ensures operations are strategically aligned
across the organization by developing a Strategic Plan tls forth priorities tha the City will
accomplish with public resources.
Some of the rrjorobjective: included by priority area are:
Public Safety
The ShotSpottegunfire 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,
Overtowr and Park West. The expansion would cover Coconut Grove, Little HaAllapattal,
Model City, Upper Eastside aiDowntown. Since its inception, it has been reported that the City's
homicide rate has decreased by over 30 pe due to theimplementatio of the ShotSpotter
to chnolog;.'
Housing
As noted earlier,n November 2017, the Miami voters approved $400 million general obligation
bond to build a stronger, more resilient future for Miai$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 RenaissanceThe 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 pn to Workforce
development income levi; is
10
Draft (1) 02-28-2020
• Homeownership Preservation Strategy will provide re abilitation 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 sii-family units, townhomes and condominiums to
eligible individuals and families;
• Affordable Rental Housing Preservation Stra will provide construction and permanent
financing to assist with the rehabilitation/preservation of existing affordable multifamily
rentalprojecl; and
• Affordable New Construction Rental Strat 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 planne,, the Underline project broke ground in the 12018. The project combines green public
spaces with paths that connect to transit stations, fully separated from the adjace The-eet.
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 theMiami Trolley services to add a new
Flagam route By adding aFlagam Route, the overall efficiency of travel for all residents, tourists,
and commuters within thFlagam 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 CA) 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 bee
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.
Draft (1) 02-28-2020
Capital Improvement Plan
The six -year CIP from FY 2018-19 to FY 2023-24 includes funding of $537.863 million for 483
active
projects. During FY2018-19 new capital budget appropriations totaling $25.874 million will be used
to fund 49 projects as detailed in the Plan.
City Funds make up the largest share of funding at 68.0 percent, followed by City Debt Proceeds and
funding received from Miami -Dade County at 20.7 percent and 4.5 percent, respectively. The
remaining 6.9 percent is made up of funding from the State,Other Local Units, Private Donations and
Other, and Federal 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 Amount Percent
City Funds $ 365,941,000 68.0%
City Debt Proceeds 111,490,000 20.7%
Private Donations/Other 5,447,000 1.0%
State Grants 19,081,000 3.5%
Federal Grants 3,111,000 0.6%
Miami -Dade County Grants 24,019,000 4.5%
Other Local Units 8,774,000 1.6%
$ 537,863,000
Capital Improvement Program
Expenditures by Fund
Description Amount Percent
General Government $ 63,607,000 11.8%
Streets and Sidewalks 125,229,000 23.3%
Disaster Recovery 1,251,000 0.2%
Mass Transit 8,945,000 1.7%
Parks and Recreation 118,452,000 22.0%
Public Facilities 115,527,000 21.5%
Public Safety 44,074,000 8.2%
Sanitary Sewers 10,857,000 2.0%
Solid Waste 3,374,000 0.6%
Storm Sewers 46,547,000 8.7%
$ 537,863,000
12
Relevant Financial Policies
Draft (1) 02-28-2020
The City has adopted a comprehensive set of financial polThe policies are described below.
Debt Management Policy
The City adopted arevisedDebt Management Policy oMay 26, 201E, to provide guidance
governing the issuance, management, continuing evaluation of and reporting on all debt obligations
issued by the City. Additionally, the Policwill provide guidancefor the preparation and
implementation necessato assure complian. It is the responsibility of the Finance Committee to
review and make recommendations regarding the issuance of debt obligations and the managemen
of outstanding debt. The Finance Committee shall consist of seven voting n, 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 C.erk
The City's Finance Committeiwill 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
Management Policy: (a) the City will not issue debt obligations or use debt proceeds to
current operations, ) the City will utilize debt obligations only for acquisition, constructior
remodeling of capital improvement projects that cannot be funded from current revenue soul
such cases wherein it is more equitable to the users ofthe project to finance the project over
life, (c) the City will measure the impact of debt service requirements of outstanding and p
debt obligations on single year, five, ten and twenty-year periods. This analysis will consic
service maturities and payment patterns as well as the City's commitment to a pay as
budgetary capital allocation, (d) the City will evaluate the long-term operational impact of
projects to the City's budget and five-year financial plan. Each proposed debt issuance
accompanied by a statement from the City Manager stating the estimated operational impE
project being financed, and (e) the City may periodically refinance debt to take advantage
interest rates which will result in a Present Value Savings. The City may issue current re
bonds that result in a minimum of three percent (3%) Net Present Value savings, and
refunding bonds that result in a minimum of five percent (5%) Net Present Value savings. Rf
bonds shall not extend the final maturity ofthe bonds being refunded. If the present value s
less than the threshold, or will result in a present value loss, and/or the maturity is greater
maturity on the debt obligations to be refunded, the City may issue or enter into refundir
obligations but only after a finding by the Commission that a compelling public policy obi
the Debt
finance
i or
ces or in
its useful
roposed
ler debt
you go
capital
will be
ict of the
of lower
funding
advance
funding
avings is
than the
►g Debt
e ctive
13
Draft (1) 02-28-2020
would be achieved by the refunding, sucheliminating restrictiv and 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 refinancing existing debt obligations. Projects must be designed as public
purpose projects by the City Commission prior to funding, ar all debt obligations shall have a
maximum maturity of the earlier oli) the estimated useful life of the Capital Improvements being
financed; or, (ii) thirty years: ((iii), in the event they are being issued to refinance outstanding debt
obligations the fim 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 orequaltc 5%.
Investment Management Policy
The City adopted a detailed written investment policyebruary 26, 201, that applies to all cash
and investments held or controlled by the City and identified as "general operatin." Thes
Investment Policy does not apfto 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 fun Additionally, any future revenu which have statutory
investment requirements conflicting with the City's Investment P, and funds held by State
agencies (e.g. Department ofReven are not subject to the provisions ofthe policy.
The primary objective ofthe investment program is the safety ofthe principal of those funds within
the portfolios. Investment transactions shall seek to keep capital losses at a minimum, whether they
are from securities defaults 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 (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 directicregardin, the management ofthe 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 investmentraftittes. 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 small 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
of securities: (a) The Florida Local Government Surplus Funds Trust Fund, (b) United
Government Securities, (c) United States Government Agencies, (d) Federal Instrumenta
Interest Bearing Time Deposit or Savings Accounts, (f) Repurchase Agreements, (g) Cial
Paper, (h) Corporate Not (i)Municipal Securities, (j) Registered Investment Companies
Market Funds), (k) Intergovernmental Investment , (1) Agency Mortgage -Backed Securities,
Asset -Backed Securities, (Supranationa and (o Foreign Sovereign Governments.
types
States
lities, (e)
nmerc
Money
m)
For the year ending Septembe0, 2018, the City ha; complied with its Investmenand Debt
Management Policies
The investment policy is adopted by City Resok. The Finance Director, Treasurer, and the
Investment Committee shall review the policy annually and the City Commission shall aXnyDve a
modifications made thereto.
Financial Integrity Principles
On February 10, 2000, the City enacted Ordinance No. 11890 (`Financial Integrity Ordinance')
establishing thirteen financial 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 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 transfer:
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 any
welfare of the City's residents, businesses or visitors; anthe "designate" 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 marke `Designated'
fund balance shall be classified as either restricted, committed, or assigned based on standards ani
guidance established by the Governmental Accounting Standards Board (GASB).
Draft (1)02-280?0
For the 209 fiscal year,he City's General Fund reser�increase b a proximately 2. million
anc had ai ending fund balance capproximatel $187._` million. Of the ending fund balanc e,
approximately $93.(9 million is restricted, approximatel $3.3 million is nor-spendabl,
approximatel $33.(38.0 is assigned, and approximatf$69.] million is unassigne. The City is in
accordance with the Financial Integrity Ordinawhich 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 trans] and amounts designated as "contingency also included in
the calculatio, which equates to $64.4 million for both `Designated" and "Unassigned" for the 2018
fis c a l year.
The City's five-year forecasprojects that revenues will not grow as as anticipated expenditur. s
Revenues are forecasted to grow by a total of 16.6 percent, while expenditures are projected to grow
by a total of 17.4 percen]However, in FY 202-23 the City is currently not projected to meet the
FIP requirement due to current Collective Bargaining Agreemenhe ultimate course will be
determined by the City Commission in its review, consider, and ultimate approval of future
budgets submittf 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. Howeve can be
no assurance that the General Fu:eserves will reach or be maintained at the level required by the
Financia Integrity Ordinance. The Cit2continues to recommend balanced bus, including
recommendations 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 retiree, 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 lial The City allow for cost allocation of
pension, health insurance and worker's compensation benefits in the operating departments and a
centralized accou 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 ofMiami, Florida for its
Comprehensive Annual Financial Report (CAFR) for the fiscal year ended Septembei7. The►1
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
Draft (1) 02-28-2020
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 oiWe 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
annual budget document for the fiscal year beginning October 1, 2017. To qualify
Distinguished Budget Presentation Award, the government's budget document had to bE
proficient as a policy document, a financial plan, an operations guide, and a communications
Acknowledgements
for its
or the
judged
device.
The preparation ofthis report would not have been possible without the skill, effort, and dedication
of the entire staff of the Finance Department. The yea closin€, 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 ofthis report.
Respectfully submitted,
Emilio T. Gonzalez
City Manager
Sandra Bridgeman, CPA
Assistant City Manager/CFO
Erica T. Paschal, CPA
Finance Director
Draft (1) 02-28-2020
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, 2018
Executive Director/CEO
18
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Report
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Report
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Report
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Management's Discussion and Analys
is
As management of the City of Miami, Florida (the "City'), we offer readers of the City 's financial
statements this narrative overview and analysis ofthe financial activities ofthe City for the fiscal year ended
September 30, 2019. 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 ofthe 2019 fiscal year by approximately$734.24 nriiJ p$ition deficit)
• The City total net position increased in fiscal year 2019 by $49.3 million compared to a decrease in net
position of $344.3171.25 million during fiscal year 2018. 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 Tmt1 alFund)eported
a fund balance of approximately $199.52 million, an increase of approximately $12.06 million in
comparison with the prior year.
• The City's total outstanding long-term liabilities had a net increase of approximately $136.35 million
during the current fiscal year primarily due to an increase in claims payable and net OPEB liabilities.
Ove tvie w 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.
Govenunent--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 financial
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
activitie s.
Both of the government -wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental reveng isetnmental activitie)s 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.
Draft (1) 02-28-2020
C1TY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2019
The government -wide financial statements include not only the City itself (known aspitheary
governmer); 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 depaitiuents 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 financial
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 irfctim 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.
Draft (1) 02-28-2020
C1TY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2019
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 financial statements can be found on pages 44-45 of this report.
Notes to the FinancialStatements
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 financial 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 146-160 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 166-179 of this report.
Government nt-Wide Ovenill Financial Analysis
As noted earlier, net position over time may serve as a useful indicator of a government's financial position.
In the case of the City, the assets and deferred outflows of resources was lower than liabilities and deferred
inflows of resources by $734.2 million at the close of the most recent fiscal year, resulting in a net 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, 2019, the City's net investment in capital assets was approximately $600.06
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, 2019, the City's portion of restricted net position was approximately
$372.93 million.
The remaining portion represents an unrestricted net deficit of approximately $1.716 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.
Draft (1) 02-28-2020
C1TY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2019
At the end of the current fiscal year, the City's net position decreased (deficit) from net position deficit of
approximately $678.80 million to approximately a net position deficit of $734.17 million. The reasons for
this overall decrease are discussed in the following sections for governmental activities.
The following schedule reflects a summary ofthe statement ofnet position compared to the prior year:
Summary Statement of Net Position (Deficit) as of
September 30, 2019 and 2016
Governmental Activities
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)
2019
2018
$ 721,721,685 $
1,094,248,044
1,815,969,729
399,991,172
208,802,194
2,616,902,750
2,825,704,944
124,429,138
604,198,879
372,927,622
(1,711,300,282)
$ (734,173,181)
757,464,172
1,1 13,240,897
1,870,705,069
222,220,447
240,309,985
2,345,727,412
2,586,037,397
136,356,671
578,092,580
358,414,955
(1,565,976,087)
$ (629,468,552)
Change
Change ($) (%)
$ (35,742,487)
(18,992,853)
- 4.721%
- 1.71%
(54,735,340) -2.93%
177,770,725 80.00%
(31,507,791)-13.11%
271,175,338 11.56%
239,667,547 9.27%
(11,927,533)-8.75°fo-
26,106,299
14,512,667
(145,324,195)
$ (104,704,629)
4.52%
4.05%
9.28%
16.63%
28
Draft (1) 02-28-2020
C1TY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2019
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, 2019 and 2018:
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
Total Expenses
Change in Net Position
Net Position (Deficit) - Beg. Restated
Net Position (Deficit) - Ending
Changes in Net Position (Deficit)
Governmental Activities
2019 2018 Change ($) Change (%)
$ 328,499,947
101,694,265
2,816,007
427,204,549
51,399,079
17,254,032
37,022,921
64,160,961
17,068,757
1,047,120,518
$ 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
952,286,082
$ 53,897,741
6,170,188
(6,253,755)
29,956,675
1,657,166
873,111
1,235,924
(90,028)
7,387,414
94,834,437
19.63%
6.46%
-68.95%
7.54%
3.33%
5.33%
3.45%
-0.14%
76.30%
9.96%
232,921,799
37,420,781
30,759,396
39,659,410
130,330,017
568,566,766
21,581,323
69,896,549
20,689,106
1,151,825,147
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
902,954,420
42,096,558
14,699,446
2,388,294
4,386,626
6,812,306
180,914,819
(789,841)
3,078,894
(4,716,375)
248,870,727
22.06%
64.69%
8.42%
12.44%0
5.51%
46.67%
-3.53%
4.61 %
-18.56%
27.56%
(104,704,629) 49,331,662 (154,036,291) 312.24%
(629,468,552) (678,800,214) 49,331,662 -7.27%
$ (734,173,181) $ (629,468,552) $ (104,704,629) 16.63%
*The City implemented GASB statement 75 as ofOctober 1, 2017.
*The information was not available to implement the restatement for the prior periods presented in the MD&A.
GovernmentalActivities
As noted earlierthe City's net positioiincreasecby approximatel $77.z million compared to priofiscal
yea:. The major changes are as follows:
Totalrevenuesfor governmental activitieincreased over the pricyear ani were greate than the tota
expenses for the governmental activitSpecifically the charges foiservices ancpropertytaxes increase
1
d
29
Draft (1) 02-28-2020
C1TY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2019
over the prior year by 11.38 million and 33.80 million, respectively. The charges for services and
property tax increases reflect the economic rec4 in the Cit3. Strong gowth in the construction industry
resulted in increased permit fees and assessments, which are included in charges for services. Property taxes
increase(9.30 percent which is primarily attributed to an increase in property values.
Other significant increases in revenue are primarily attributed tcreasesin operating grants and
contributions and capital grants and contributicThe increas in operating grants and contributions of
$14.41 million is the result o:increases in funding received in the current year relative to the pric; year
primarily related to n increase irPublic Work. The increase in capital grants and contributions 7.99
million is the result oincreases in funding received in the current year relative to the prior year; primarily
related toState 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 increlover the prior yea:by $5.14 million (or 113 percen .)
primarily due to increas in the federaintereslrate from1.00 — 1.25 percent as of September 2017 to 2.00-
2.25 percent as of September 2018.
During fiscal yea12018, expenses for governmenactivitiesdecrease by $150.f7 million. Expenses for
Public Safety xperience the mos significant decreas of $191.i1 million or 33.09 percentduring the
currentfiscalyear. This decreas 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 1, related deferred outflows of
resource 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 expensalso &crease $4.6 million when compared to last fiscal year due to
defeasance of certain debt involving advance refur ding.
Planning and Development, Public Works, and Public Fac expenses increased by $6 million,
$27.52 million, and $328 million, respectively.The increase in Planning and Development expens
mainly attributed to renovation of the Building Depaitiiient at the Miami Riverside Center. The inci
expenses for Public Works is mainly due to Hurricane Irma debris rerThe increase iPublic Facilities
expenses imainlyattributed o a re concilia tion settlement agreement with Hyatt Regency.
es is
ease in
Draft (1) 02-28-2020
CITY OF MIAMI, FLORIDA
MANAGEMENT'S DIS CUS S ION AND ANALYS IS (Unaudited)
September 30, 2019
The following charts provide a visual representation ofexpenses and revenues for the governmental
activities for fiscal year ended September2018:
$450,000,000
5400,000,000
$350,000,000
5300,000,000
$250,000,000
$200,000,000
$150,000,000
$100,000,000
$50,000,000
$-
Expenses and Program Revenues - Governmental
Activities
NM ,1
�esw sec` sec` P`e�5 o+ty �1e `\ti,,e5 �`�q,Ae4"
oSe`C\ re
,e\aQ �,� '�'` 'a`Gy `Fao ate ma's.
�ece �,01 ..§' Qatt e``cc
Ae
(9
■ Expenses • 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 -
unrestricted, 1.02%
Charges for services,
28.84%
Operating grants and
contributions, 10.03%
31
Draft (1) 02-28-2020
C1TY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2019
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 ofthe 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 $199.52 million. Of this amount, the City has approximately $123.05
million retained as designated fund balance, which includes 82.88 million as restricted, approximately
$3.34 million is recorded as non -spendable for prepaid expenses, approximately $33.56 million is
designated as assigned fund balance, and approximately $69.05 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 $12.06 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 ofthe City's other major governmental funds are as follows:
The Impact Fee Fund has a fund balance of $89.70 million. The increase in fund balance of $1.25 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 $138.57 million. This represents an increase of
approximately -$2.57 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.
Draft (1) 02-28-2020
C1TY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2019
General Fund Budgetary Highlights
The F12018 Adopted Budget maintains funding for current (services, ar allows for expanded services
in some categories whillowering the overall millage rate from 290C to 8.0301. The Adopted Budget
includes a lowered overall property tax rate for seveith year in a row and funds certain strategic
enhancements without reducing services.
The FY20=8 City's Adopted General Fund Budget totaled approximat726J million. During the fiscal
year, thegeneralfund budget was amen( at mid -year and at year-e. These amendments increased the
previously adopted budget by approximatel8.9 million to a revised total of approximately735. i
million. This increase in thgeneralfund is primarily due to higher than budgeted expenditures in a few
depaitiiients and the allocation of additional resources to C. 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 challengThe Five -Year Financial Foreuprojects that revenues will not
grow as fast as anticipated expenditures over the forfperiod. Overall,generalfund revenues are
projected to grow b:16.E percent over the next five ye anc generalfund expenditures are projected to
grow by 17.4 percent over the same perioWith the projected fund balance 01195.06: 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 requireiThe 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.
Draft (1) 02-28-2020
C1TY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2019
Capital Assets and Debt Administration
Capital Assets
The City's capital assets as of September 30, 2019 is $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 1.71 percent.
Land
Construction -in -Progress
Buildings
Improvements
Machinery and Equipment
Infrastructure
Total
Capital Assets at Year End
(Net of Depreciation)
Governmental
Activities
2019
$ 120,473,843
126,641,268
208,782,224
78,474,025
64,492,823
495,383,861
$ 1,094,248,044
2018
111,388,474
104,174,459
216,395,682
92,994,564
70,659,297
517,628,422
$ 1,113,240,898
Change
Change ($) (%)
$ 9,085,369
22,466,809
(7,613,458)
(14,520,539)
(6,166,474)
(22,244,561)
$ (18,992,854)
Major capital asset events during the current fiscal year included the following:
8.16%
21.57%
- 3.52%
-15.61%
- 8.73%
- 4.30%
-1.71%
• Land increased approximately $9.1 million. The increase is attributed in large part to the City acquiring
twenty properties valued at $8.5 million and CRA SEOPW/Omni acquiring 2 properties valued at $600
thousand for fiscal year 2019.
• Construction in progress increased approximately $22.5 million. The total transfers out of construction
in progress amounted to approximately $20.7 million; however, there was an addition of approximately
$43.5 million in new expenditures offset by $300 thousand in expense items during fiscal year 2019.
• Buildings decreased by approximately $7.6 million. The decrease is in large part attributed to $700
thousand in completed construction in progress projects and building acquisitions offset by $8.3 million
in depreciation expense.
• Improvements decreased by approximately $14.6 million. The projects completed during the fiscal year
and transferred from construction in progress, included $2.2 million in building improvements and $4.5
million in land improvements. There were also additions of $374 thousand in improvements for City
parks, Public Works, Fire, Solid Waste and Police Depaitiuents. 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 $6.2 million. There was $15.1 million in
additions and transfers, primarily attributed to the acquisition of new ambulances, boats, computers,
heavy duty trucks, Police and Fire equipment these expenditures are offset by $7 million in retirements
and approximately $14.3 million in depreciation expense for the current fiscal year.
Draft (1) 02-28-2020
C1TY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2019
• Infrastructure decreased by approximately $22.2 million. There was $12.1 million in transfers primarily
attributed to roadway improvements. These transfers were offset by $3 4.3 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
financial statements.
Long -Term Debt
At the end of the current fiscal year, the City had a total debt outstanding of $601.9 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 -$63.8 mi10.73olaercent.
General Obligation Bonds
Special Obligation,
Revenue Bonds and Loans
Outstanding Debt
General Obligation Bonds, Special Obligations
and Revenue Bonds and Loans
Governmental Activities
2019 2018
S Change % Change
- $ 154,385,000 $ 154,385,000 100.00%
288,020,000
511,328,092 223,308,092 43.67%
Total $ 601,913,992 $
665,713,092 $ 63,799,100 9.58%
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
Draft (1) 02-28-2020
C1TY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2019
Economic Factors and Next Year's Budget and Rates
The budgeis developed based on needs performance, al follows the direction of policy as set by the
elected officials. Thprocess begins with the preparation of the financial ou, 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 co; 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 depaitriients for their use in preparing their budget subr Theris.
City's elected and appointed officials considered many factorn adopting the fiscal ye12018 budget.
Included among these factors were uncertainties regarding pension costs, health insurance cpost, other
employmer benefit cost, andothervarious economiindicators
The City of Miami, like many municipalities throughout the Stal slowly recovering from the economic
downturn oitheprevious year Recently approved State legisla along with a constitutional amendment
passed by Florida voters, lowered the City's taxable values while establishing controls on its mil age rate
(discussed belo`. This legislation and amendmfwaalso a clear indication by the people of the State of
Florida that not enoughas done in the previous year to provide property owners with tax -elief.
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 ofFY 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 financtcsdemonstrate the City's accountabilittuestions 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 Southwe"gtAWenue, Suite 618, Miami,
Florida 33130, or visit the City's web site at www.miamigov.com.
Draft (1) 02-28-2020
Page left intentionally blank
City of Miami, Florida
Statement of Net Position (Deficit)
September 30, 2019
Draft (1) 02-28-2020
Assets
Cash, Cash Equivalents, and Investments
Receivable - Net
Accrued Interest
Due From Other Governments
Land Held for Resale
Prepaids
Other Assets
Restricted Cash, Cash Equivalents, and Investments
Related to Bond Proceeds
Restricted Cash, Cash Equivalents, and Investments
Capital Assets:
Non -Depreciable
Depreciable - Net
Total Assets
Deferred Outflows of Resources
Deferred Loss on Refunding Bonds
Outflow Related to Pension
Outflow Related to OPEB
Total Deferred Outflows of Resources
Governmental Component
Activities Units
$ 476,253,577
31,447,964
956,799
28,391,548
90,971
3,364,234
716,147
33,757,159
146,743,286
247,115,111
847,132,933
$ 23,941,203
2,434,813
1,250,158
691,637
14,207,191
24,457,385
22,730,783
47,462,058
1,815,969,729 137,175,228
12,651,891
188,146,004
199,193,277
957,031
2,430,753
21,209
399,991,172 3,408,993
Liabilities
Accounts Payable and Accrued Liabilities 67,971,840 6,974,376
Due to Other Governments 3,046,516 3,427,200
Unearned Revenue 17,726,738 1,203,425
Deposits 15,086,569 407,145
Accrued Interest Payable 4,837,181 1,580,701
Non -Current Liabilities:
Due Within One Year:
Bonds and Loans Payable 56,825,825 1,910,000
Compensated Absences 6,074,567 14,048
Claims Payable 37,232,958
Due In More Than One Year:
Bonds and Loans Payable 554,216,393 60,230,985
Compensated Absences 58,878,430 620,726
Claims Payable 172,556,517 -
Other Post Employment Benefits 863,626,604 640,475
Net Pension Liability 967,624,806 -
Total Liabilities $ 2,825,704,944 $ 77,009,081
Deferred Inflows of Resources
Revenue Received in Advance 16,040,863 -
Inflow Related to Pension 54,066,680 992,246
Inflow Related to OPEB 54,321,595 26,278
Total Deferred Inflows of Resources $ 124,429,138 $ 1,018,524
Net Position (Deficit)
Net Investment in Capital Assets
Restricted for:
Capital Projects
Debt Service
Pension Benefits
Parking Waiver and Transportation
Parking Surcharge
Facilities Improvement
Building
Housing Assistance and Economic Development
Law Enforcement
Community Redevelopment
Choice Housing Voucher Program
E-911 and Public Safety
Other
Unrestricted (Deficit)
604,198,879
176,441,549
32,466,709
10,645,851
7,160,521
85,959,626
10,117,298
664,952
34,304,938
8,299,637
6,866,541
(1,711,300,282)
14,511,676
12,147,594
1,733,930
47,751
830,294
438,876
32,846,495
Total Net Position (Deficit)
$ (734,173,181) $ 44,687,233
38
City of Miami, Florida
Statement of Activities
For the Fiscal Year Ended September 30, 2019
Draft (1) 02-28-2020
Functions/Programs:
Primary Government:
Governmental Activities:
General Government
Planning and Development
Community Development
Community Redevelpment Areas
Public Works
Public Safety
Public Facilities
Parks and Recreation
Interest on Long -Term Debt
Total Primary Government
Component Units:
Miami Sports and Exhibition Autho
Department of Off -Street Parking
Downtown Development Authority
Bayfront Park Management Trust
Coconut Grove BID
Wynwood BID
Civilian Investigative Panel
Total Component Units
Expenses
Charges for
Services
Program Revenues
Operating
Grants and
Contributions
$ 232,921,799 $ 67,198,474 $ 23,526,007
37,420,781 48,3 57,041
30,759,396 920,736 27,612,919
39,659,410 5,638,853 2,420,963
130,330,017 57,538,163 20,250,417
568,566,766 102,248,864 26,083,027
21,581,323 38,503,061 667,048
69,896,549 8,094,755 1,133,884
20,689,106 - -
$ 1,151,825,147 $ 328,499,947 $ 101,694,265
ty $ 525,242 $
49,003,047 40,580,784
7,842,452
6,875,610 1,910,131
1,806,289 1,656,397
855,381 976,241
953,136 -
799,630
Capital
Grants and
Contributions
$ 1,820,190
458,808
344,570
192,439
Net (Expense) Revenue and Changes in
Net Position
Primary
Government
Governmental
Activities
Component
Units
$ (140,377,128) $
10,936,260
(2,225,741)
(31, 599, 594)
(52,541,437)
(439,776,067)
17,933,356
(60,475,471)
(20,689,106)
$ 2,816,007 $ (718,814,928) $
$ 67,861,157 $ 45,123,553 $ 799,630 $
General Revenues:
Taxes:
Property Taxes, levied for general purposes
Property Taxes, levied for debt service
Franchise Taxes
State Revenue Sharing - Unrestricted
Sales and Other Use Taxes
Public Service Taxes
Investment Earnings - Unrestricted
Other General Revenues
Total General Revenues
Change in Net Position
Net Position - Beg.(Deficit) as restated (Note 1)
Net Position - Ending (Deficit)
$ (525,242)
(8,422,263)
(7,842,452)
(4,965,479)
(149,892)
120,860
(153,506)
$ $ (21,937,974)
$ 404,479,302 $ 8,775,932
22,725,247
51,399,079
17,254,032
37,022,921
64,160,961
17,068,757
614,110,299
(104,704,629)
(629,468,552)
14,912
2,683,807
11,474,651
(10,463,323)
55,150,556
$ (734,173,181) $ 44,687,233
39
General
City of Miami, Florida
Balance Sheet
Governmental Funds
September 30, 2019
Major Funds
Draft (1) 02-28-2020
Special Non -Major Total
Other Capital Obligation Emergency Governmental Governmental
Projects Impact Fee Bonds Services Funds Funds
Assets
Pooled Cash, Cash Equivalents, and Investments $ 201,112,570 $ 157,233,732 $ - $ - $ 1,012,236 $ 116,895,039 $ 476,253,577
Restricted Cash, Cash Equivalents, and Investments - - 92,375,474 19,928,145 - 68,196,826 180,500,445
Receivables (Net of Allowance for Uncollectibles):
Loans Receivable - - - - - 1,794 1,794
Accounts Receivable 24,962,448 1,610 333,333 3,844,069 29,141,460
Property Tax 2,122,907 - - - 181,803 2,304,710
Due From Other Governments 6,856,127 6,682,357 3,085,669 11,767,395 28,391,548
Due From Other Funds 41,118,548 - - - 41,118,548
Accrued Interest 806,502 4,108 41,010 105,179 956,799
Prepaids 3,342,337 - - 21,897 3,364,234
Other Assets 215,639 - - - - 500,508 716,147
Total Assets $ 280,537,078 $ 163,921,807 $ 92,416,484 $ 20,261,478 $ 4,097,905 $ 201,514,510 $ 762,749,262
Liabilities and Fund Balances
Liabilities:
Accounts Payable and Accrued Liaibilities 36,751,391 11,586,076 2,716,679 1,068,962 13,528,196 65,651,304
Other Liabilities 2,316,312 - 4,224 2,320,536
Due to Other Funds - 3,790,189 17,567,616 19,760,743 41,118,548
Due to Other Governments 150 - - 3,046,366 3,046,516
Unearned Revenue 8,916,968 8,809,770 17,726,738
Deposits 14,869,119 - - - 217,450 15,086,569
Total Liabilities 62,853,940 24,186,035 2,716,679 18,636,578 36,556,979 144,950,211
Deferred Inflows of Resources
Revenue Received in Advance 16,040,863 - - - - 16,040,863
Unavailable Revenue - Other 2,122,907 1,166,300 - - 3,340,403 6,629,610
Total Deferred Inflows of Resources 18,163,770 1,166,300 - - 3,340,403 22,670,473
Fund Balances:
Non -Spendable Fund Balance
Non Spendable 3,342,337 1,111,308 8,907,290
Spendable Fund Balance
Restricted 93,564,826 64,130,169 89,699,805 20,261,478 1,663,759 135,083,498 644,941,325
Committed - 67,636,283 - - 601,103 42,586,960 154,012,409
Assigned 33,558,186 6,803,020 - - - 956,808 75,833,008
Unassigned (deficit) 69,054,019 - - - (16,803,535) (18,121,446) 86,959,037
Total Fund Balances (deficit) 199,519,368 138,569,472 89,699,805 20,261,478 (14,538,673) 161,617,128 595,128,578
Total Liabilities, Deferred Inflows of Resources and
Fund Balances $ 280,537,078 $ 163,921,807 $ 92,416,484 $ 20,261,478 $ 4,097,905 $ 201,514,510 $ 762,749,262
40
Draft (1) 02-28-2020
City of Miami, Florida
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
Forthe FiscalYearEnded September30, 2018
Fund Balances - Total Governmental Funds $ 595,128,578
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 As sets
Less: Accumulated Depreciation
2,644,692,706
(1,550,444,662)
1,094,248,044
Inventory for land held for resale are not financial
resources and therefore are not reported in the governmental fiends. 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 fiends:
Deferred outflows related to pensions
Deferred outflows related to OPEB
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 governmentalfunds.
Bonds, Notes, and Loans Payable
Compensated Absences
Claims Liability
Total OPEB Liability
Net Pension Liability
Accrued Interest Payable
188,146,004
199,193,277
(54,066,680)
(54,321,595)
(611,042,218)
(64,952,997)
(209,789,475)
(863,626,604)
(967,624,806)
(4,837,181)
278,951,006
12,651,891
4,324,300
2,304,710
(2,721,873,281)
Net Position (Deficit) of GovemmentalActivities $ (734.173.781)
41
City of Miami, Florida Draft (1) 02-2 8 -2 02 0
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For The Fiscal Year Ended September 30, 2019
General
Major Funds
Special Non -Major Total
Other Capital Obligation Emergency Governmental Governmental
Projects Impact Fee Bonds Services Funds Funds
Revenues
Property Taxes $ 359,518,170 $ - $ - $ - $ $ 67,686,379 $ 427,204,549
Franchise and Other Taxes 115,560,040 115,560,040
Licenses and Permits 75,421,804 4,588,337 80,010,141
Fines and Forfeitures 7,699,136 9,781 - 1,584,307 9,293,224
Intergovernmental Revenues 80,635,979 2,816,007 4,000,000 5,403,096 66,249,321 159,104,403
Charges for Services 122,174,203 293,789 - 12,488,295 134,956,287
Investment Earnings (Loss) 12,357,625 2,221,198 160,173 2,329,761 17,068,757
Impact Fees 17,360,958 - 17,360,958
Other 10,723,544 21,438 4,078,644 8,035,711 22,859,337
Total Revenues 784,090,501 3,141,015 19,582,156 4,160,173 9,481,740 162,962,111 983,417,696
Expenditures
Current Operating:
General Government
Planning and Development
Community Development
Community Redevelpment Areas
Public Works
Public Safety
Public Facilities
Parks and Recreation
Debt Service:
Principal
Interest and Other Charges
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses)
Transfers In
Transfers Out
Proceeds from Sale of Property
Issuance of Debt
Total Other Financing Sources (Uses)
Net Changes in Fund Balances (Deficit)
Fund Balances (Deficit) - Beginning
Fund Balances (Deficit) - Ending
126,083,826 2,839,221
24,401,793 2,013,606
1,848,391 14,509
83,058,030 3,408,109
414,680,737 1,331,118
13,097,706 397,341
47,160,052 416,184
12,986 1,367,927 85,518 18,256,440 148,645,918
- 2,427,571 28,842,970
27,415,950 29,278,850
- 38,207,865 38,207,865
58,472 77,030 17,009,126 103,610,767
358,892 4,409,999 17,186,128 437,966,874
2,776,503 16,271,550
250,592 221,911 1,623,743 49,672,482
- 140,727,687
- 18,165,665
2,668,288 27,589,631 17,651,525
2,725,720
31,428,886
6,401,600
24,430,804
172,156,573
24,567,265
75,065,968
712,998,823 38,009,719 18,332,467 160,261,279 7,520,178 187,164,616 1,124,287,082
71,091,678 (34,868,704) 1,249,689 (156,101,106) 1,961,562 (24,202,505) (140,869,386)
3,830,006
(63,061,000)
195,133
31,418,500 38,618,000 1,500,000 22,679,783 98,046,289
(526,000) (34,459,289) (98,046,289)
195,133
877,473 - 105,640,167 - 7,315,902 113,833,542
(59,035,861) 32,295,973
12,055,817 (2,572,731)
- 144,258,167 974,000 (4,463,604) 114,028,675
1,249,689 (11,842,939) 2,935,562
187,463,551 141,142,203 88,450,116 32,104,417 (17,474,235)
$ 199,519,368 $ 138,569,472 $ 89,699,805 $ 20,261,478 $ (14,538,673)
(28,666,109) (26,840,711)
172,809,002 621,969,289
$ 161,617,128 $ 595,128,578
42
Draft (1) 02-28-2020
City of Miami, Florida
Reconciliation of the Statement of Re venues, Expenditures
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the FiscalYearEnded September30, 2018
Net Changes in Fund Balance s - Total Governmental Funds $ (26,840,711)
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. 259,489
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. (576,666)
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 75,065,968
Less: current year depreciation (84,776,819) (9,710,851)
The net effect of various transactions involving capital assets (i.e. sales and disposals) (9,282,002)
is to decrease net position.
The issuance oflong-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 51,836,573
Net effect of deferring and amortizing premiums, discounts, and accretion 1,217,645
Issuance of debt -special obligation
Issuance of debt -capital lease
Issuance ofdebt -state revolving loan (877,474)
The net effect of amortizing the loss on debt refunding. 1,502,871
Issuance of debt -refunding of bonds (112,956,068)
Payment to escrow agent for refunding 120,320,000
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.
61,043,547
Compensated absences (7,344,719)
Claims payable 71,577,098
Net OPEB liability and related deferred inflows and outflows (58,225,120)
Net pension liability and related deferred inflows and outflows (126,762,337)
Accrued interest payable 1,157,643 (119,597,435)
Change in Net Position (Deficit) of Governmental Activities $ (104,704.629)
43
Draft (1) 02-28-2020
City of Miami, Florida
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2019
Assets
Cash and Cash Equivalents
Accounts Receivable
Capital Assets, Net
Investments:
U.S. Government Obligations
Corporate Bonds
Corporate Stocks
Money Market Funds and Commercial Paper
International Equity
Real Estate
Private Equity
Total Investments
Employee
Retirement
Funds
$ 43,657,404
18,562,677
3,475,606
65,695,687
158,098,066
442,250,505
1,005,491,190
28,049,284
260,649,422
189,748,114
174,027,722
2,258,314,303
Securities Lending Collateral 114,568,536
Total Assets 2,438,578,526
Liabilities
Obligations Under Security Lending Transactions 114,568,536
Accounts Payable 940,010
Accrued Liability 3,814,775
Payable for Securities Purchased 12,391,788
Total Liabilities 131,715,109
Net Position
Restricted for Pension Benefits $ 2,306,863,417
44
Draft (1) 02-28-2020
City of Miami, Florida
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Fiscal Year Ended September 30, 2019
Employee
Retirement
Funds
Additions
Contributions:
Employer $ 104,692,045
Plan Members 27,197,882
Total Contributions 131,889,927
Investment Earnings:
Net Increase in Fair Value of Investments 51,321,223
Interest 17,435,630
Dividends 10,588,378
Other 604,633
Total Investment Earnings 79,949,864
Security Lending Activities:
Security Lending Income
Security Lending Fees and Rebates
Net Income From Security Lending Activities
60,885,798
(126,273)
60,759,525
Less Investment Expenses (5,549,441)
Net Investment Earnings 135,159,948
Total Additions 267,049,875
Deductions
Benefit Payments
Refunds upon Resignation, Death, Other
Distribution to Retirees
Administrative Expenses and Other Expenses
Total Deductions
Change in Net Position
Net Position Restricted for Pension Benefits - Beginning of Year, As Restated (Note 15)
Net Position Restricted for Pension Benefits - End of Year
204,373,558
2,985,727
25,622,525
2,541,306
235,523,116
31,526,759
2,246,002,000
$ 2,277,528,759
45
City of Miami, Florida raft (1) 02-28-2020
Statement of Net Positio
Discretely Presented Component Units
September 30, 2019
Department Downtown Bayfront Park Coconut
of Off -Street Development Management Grove
Parking Authority Trust BID
Assets
Cash, Cash Equivalent and Investments $ 14,083,147 $ 7,268,993 $ 1,385,162 $ 274,184
Receivables (Net of uncollectible accounts) 525,252 120,209 47,196 605,038
Due From Other Governments 1,250,158 -
Prepaids 533,569 107,015 43,779 7,274
Other Assets 7,674,192 101,793 6,431,206
Restricted Assets:
Cash, Cash Equivalents, and Investments 24,457,385
Capital Assets:
Non -Depreciable 22,214,654 516,129
Depreciable, Net 40,776,727 208,915 5,779,814 484,012
Total Assets 111,515,084 7,705,132 7,873,873 7,801,714
Deferred Outflows of Resources
Deferred Loss on Refunding Bonds 957,031
Outflow Related to Pension 2,430,753
Outflow Related to OPEB 21,209
Total Deferred Outflows of Resources 3,408,993
Liabilities
Accounts Payable and Accrued Liabilities 5,235,164 1,585,628 18,469 49,888
Due to Other Governments 3,427,200 -
Unearned Revenue 908,270 295,155
Deposits 378,189 28,956
Accrued Interest Payable 1,580,701
Non -Current Liabilities
Due Within One Year:
Bonds and Loans Payable 1,910,000
Compensated Absences - 14,048 -
Due In More Than One Year:
Bonds and Loans Payable 60,230,985
Compensated Absences 497,645 123,081
Other Post Employment Benefits 640,475
Total Liabilities 74,808,629 1,722,757 342,580 49,888
Deferred Inflows of Resources
Inflow Related to Pension 992,246
Inflow Related to OPEB 26,278
Total Deferred Inflows of Resources 1,018,524
Net Position
Net Investment in Capital Assets 7,516,729 208,915 6,295,943 484,012
Restricted for:
Capital Projects 12,147,594
Debt Service 1,733,930
Pension Benefits 47,751
Parking Waiver and Transportation - - 743,894
Parking Surcharge - - 438,876
Unrestricted 17,650,920 5,773,460 1,235,350 6,085,044
Total Net Position $ 39,096,924 $ 5,982,375 $ 7,531,293 $ 7,751,826
46
City of Miami, Florida raft (1) 02-28-2020
Statement of Net Positio
Discretely Presented Component Units
September 30, 2019
Civilian
Wynwood Investigative
BID Panel
Total
Assets
Cash, Cash Equivalent and Investments $ 664,164 $ 265,553 $ 23,941,203
Receivables (Net of uncollectible accounts) 1,137,118 - 2,434,813
Due From Other Governments - - 1,250,158
Prepaids - - 691,637
Other Assets - - 14,207,191
Restricted Assets:
Cash, Cash Equivalents, and Investments - - 24,457,385
Capital Assets:
Non -Depreciable - - 22,730,783
Depreciable, Net 206,513 6,077 47,462,058
Total Assets 2,007,795 271,630 137,175,228
Deferred Outflows of Resources
Deferred Loss on Refunding Bonds - - 957,031
Outflow Related to Pension - - 2,430,753
Outflow Related to OPEB - - 21,209
Total Deferred Outflows of Resources - - 3,408,993
Liabilities
Accounts Payable and Accrued Liabilities 41,310 43,917 6,974,376
Due to Other Governments - - 3,427,200
Unearned Revenue - - 1,203,425
Deposits - - 407,145
Accrued Interest Payable - - 1,580,701
Non -Current Liabilities
Due Within One Year:
Bonds and Loans Payable - - 1,910,000
Compensated Absences - - 14,048
Due In More Than One Year:
Bonds and Loans Payable - - 60,230,985
Compensated Absences - - 620,726
Other Post Employment Benefits - - 640,475
Total Liabilities 41,310 43,917 77,009,081
Deferred Inflows of Resources
Inflow Related to Pension - - 992,246
Inflow Related to OPEB - - 26,278
Total Deferred Inflows of Resources - - 1,018,524
Net Position
Net Investment in Capital Assets - 6,077 14,511,676
Restricted for:
Capital Projects - - 12,147,594
Debt Service - - 1,733,930
Pension Benefits - - 47,751
Parking Waiver and Transportation 86,400 - 830,294
Parking Surcharge - - 438,876
Unrestricted 1,880,085 221,636 32,846,495
Total Net Position $ 1,966,485 $ 227,713 $ 62,556,616
47
Draft (1) 02-28-2020
City of Miami, Florida
Discretely Presented Component Units
Statement of Activities
For the Fiscal Year Ended September 30, 2019
Expenses
Program Revenues
Operating Capital Miami Sports
Charges for Grants and Grants and and Exhibition
Services Contributions Contributions Authority
Miami Sports and
Exhibition Authority
Culture and Recreation $ 525,242 $ - $ $ $ (525,242)
Total Miami Sports Exhibition Authority 525,242 - (525,242)
Department
of Off -Street Parking
Transportation 49,003,047 40,580,784
Total Department of Off -Street Parking
Downtown
Development Authority
Economic Development
49,003,047 40,580,784
7,842,452
Total Downtown Development Authority 7,842,452
Bayfront Park
Parks and Recreation
Total Bayfront Park
Coconut Grove BID
General Government
Total Coconut Grove BID
6,875,610 1,910,131
6,875,610 1,910,131
1,806,289 1,656,397
1,806,289 1,656,397
Wynwood BID
General Government 855,381 976,241
Total Wynwood BID 855,381 976,241
Civilian Investigate Panel
General Government
Total Civilian Investigate Panel
Total Component Units
953,136 - 799,630
953,136 - 799,630
$ 67,861,157 $ 45,123,553 $ 799,630 $ $ (525,242)
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
(525,242)
525,242
$
48
Draft (1) 02-28-2020
City of Miami, Florida
Discretely Presented Component Units
Statement of Activities
For the Fiscal Year Ended September 30, 2019
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
$ $ - $ $ - $ - $ - $ (525,242)
(525,242)
(8,422,263) - - - - (8,422,263)
(8,422,263) - - - - (8,422,263)
(7,842,452) - - - (7,842,452)
(7,842,452) - - - (7,842,452)
(4,965,479) - - - (4,965,479)
(4,965,479) - - - (4,965,479)
(149,892) - - (149,892)
(149,892) - - (149,892)
120,860 - 120,860
120,860 - 120,860
(153,506) (153,506)
(153,506) (153,506)
$ (8,422,263) $ (7,842,452) $ (4,965,479) $ (149,892) $ 120,860 $ (153,506) $ (21,937,974)
(8,422,263)
29,649,804
8,775,932 - - 8,775,932
14,713 199 14,912
158,626 2,525,181 2,683,807
8,949,271
1,106,819
4,875,556
2,525,380 - 11,474,651
(2,440,099)
9,971,392
(149,892)
7,901,718
120,860
1,845,625
(153,506)
381,219
(10,463,323)
55,150,556
$ 21,227,541 $ 5,982,375 $ 7,531,293 $ 7,751,826 $ 1,966,485 $ 227,713 $ 44,687,233
49
CITY OF MIAMI, FLORIaraft (1) 02-28-2020
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2019
NOTE 1. — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City, which is located in the county ofMiami-Dade, was incorporated in 1896, and has a population
of481,333. 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 ofland and 19.42 square miles ofwater.
The City's Charter was adopted by the electors ofthe City ofMiami 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 ofthe 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 financially accountable or organizations which should be included in the City's financial
statements because ofthe nature and significance oftheir 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 financially
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 ()fan(
for the year ended September 30, 2019.
50
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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 residentia
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, 2019
Draft (1) 02-28-2020
LIBERTY CITY COMMUNITY REVITALIZATION TRUST (`tiberty 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 Depaitiuent 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 N adopted by the
City Commission (as amended by City Ordinance No. 11155) and Section 213.0305 of the Florida
Statute to promote the development of sports, convention and exhibition facilities within tl, andty
attracting professional sports franchises and exhibitions to utilize the City's and/or Aut' facilities.
The City Commission must approve MSEA's board membership and operating budget. Therefore, the
MSEA is fiscally depende anc the Cit} is discretely presenting the MSEA in the accompanying
financialstatements.
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 financial
statements.
DOWNTOWN DEVELOPMENT AUTHORITY CODA') — 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, 2019
Draft (1) 02-28-2020
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 (TIP') — 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 ai
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 ofthe Coconut Grove
Business Improvement District (BID"), where the BID was deemed to be approved by a majority ofthe
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 reque
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, 2019
Draft (1) 02-28-2020
HEALTH FACILITY AUTHORITY (`FIFA') — The HFA is an agency established by the City in 1979
under the authority of Chapter 154, Florida Statutes and City Resolution No. 79-93 to serve as a conduit
to issue revenue bonds. The City Commission must approve 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 2'd Ave.
3rd Floor
Miami, Florida 33136
OMNI/MIDTOWN CRA
1401 North Miami Ave.
2'd 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 3d Street
Suite 1103
Miami, Florida 33128
Downtown Develop. Authority
200 S. Biscayne Blvd.
Suite 2929
Miami, Florida 33131
Civilian Investigative Panel
970 SW ltStreet
Suite 305
Miami, Florida 33130
B. Gove name nt-Wide Financial S tate me nts
Coconut Grove BID
3390 Mary Street
Suite 130
Miami, Florida 33133
Wynwood BID
310NW26`Street
Suite 1
Miami, Florida 33127
Liberty City Community
Revitalization Trust
4800 NW 11' 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 ari
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 1
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, 2019
Draft (1) 02-28-2020
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 it
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 fo
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 (`FIFO'), the City of Miami General Employees' and Sanitation
Employees' Retirement Trust (`SGESE') and Other Managed Trusts (Members, Excess Plan, Staff Plan,
and StaffExcess 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, 2019
Draft (1) 02-28-2020
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 an
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 item
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 taxe
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
they are both measurable and available. Revenues are considered to be available when they arc
collectible within the current period or soon enough thereafter to pay liabilities ofthe current period. For
this purpose, the City considers revenues to be available ifthey are collected within 60 days ofthe 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, insural;
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 recognize
as revenues ofthe current fiscal period when available. These include:
• Property taxes
• Intergovernmental revenue
• Sales tax, franchise and utility taxes
• Charges for services, and
• Inte re s t
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 ofthree months or less when purchased, to be a cash equivalent.
56
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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 fai
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 (` v1AV) 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 base,
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 o
the fiscal year, but represent items which are applicable to future accounting periods. Reported amounts
in governmental funds are equally offset bynon-spendablefund balance in the fund financial statements,
which indicates that these amounts do not constitute "available spendable resources" even though they
are a component of current assets.
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 inventoriablf
items are recorded as expenditures/expenses at the time of purchase since the year-end balances are r
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
limited by applicable bond indentures, contracts, agreements, and other externally imposed constraints.
57
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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 financial statements. Capital assets
are defined by the City as assets with an initial cost of $1,000 or more and an estimated useful life in
excess of one year. Such assets are recorded at historical cost if purchased or constructed. Donate
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 maintenanc
and repairs that do not add to the value ofthe 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 accumulate(
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 ofRes ounces
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows ofresources. This separate financial statement element, deferred outflows ofresources
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 t(
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 als
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, 2019
Draft (1) 02-28-2020
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 ofnet 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 -yea
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 o
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 ofthe 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 purpos
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 availably
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 MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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 unearne
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, 2019 are as follows:
Source Balance
College of Policing - Lease Income $ 8,809,770
Skyrise Miami - Lease Income 8,916,967
Total $ 17,726,737
Long -Tenn 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 financial 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 deb
issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actua
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 assessments 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 ofrecovery 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 MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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 consist;
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 componer
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 fo
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 Balanc-e 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 Balanc-e 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 Balanc-e 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 bee
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 MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
The following schedule classifies the City's fund balances as of fiscal year end September 30, 2019:
FUND BALANCES
Non Spendable:
Recycling Trust Fund
Prepaid Items
General
City of Miami, Florida
Fund Balance Classification
Major Governmental Fund%
September 30, 2019
Major Funds
Non -Major Total
Other Capital Special Emergency Governmental Guvernmentat
Projects Impact Fee ❑hlikyation Bonds Services Funds Funds
5
3,342,337
$ - 5
5 $ 1,089,411 $ 2,178,822
21,897 6,728,46&
3,342,337
1,111,308 8,907,290
Spendable:
Restricted for:
Debt Service (Required by Debt Covenants) - 20,261,478 12,205,232 64,933,42D
Water Sewer Combination - 19,530,163 19,530,163
Emergency and Disaster Relief - - - 1,663,759 3,327,51 &
Park Projects - 15,355,457 - 4,740,096 21,225,119
Capital Improvements 7,569,701 89,699,805 - 26,634,749 1.44,607,263
Transportation and Transit 7,605,200 1,531,848 27,235,222 71,212,692.
Dousing and Urban Development - 9,904,493 19,808,986
Public Safety - 3,049,357 - - - 8,299,636 19,648,629
Building 85,959,626 1,778,894 - 173,698,146
Facilities Improvement 8,336,943 7,654,021 23,151,485
Public Works 5,162,936 213,365 5,589,666
Other 1,814,870 - - 3,389,152 8,593,174
CRA - - - - - 34,304,938 68,609,876
Economic Development - - - 212,805 425,610
Duman Services 289,789 579,578•
93,564,826 64,130,169 89,699,805 20,261,478 1,663,759 135,083,498 644,941,325
Committed to:
Housing and Urban Development - 5,082,346 10,164,692-
Capitallmprovement 19,452,853 - - - 19,452,853
Public Safety - 388,644 - 297,063 982,77D
Public Works - 6,360,514 - - - 3,603,244 13,567,002
Facilities Improvement - 16,101,797 - - 16.101,797
Parks Projects 3,275,945 3,501,272 10,278,489
Water -Sewer Combination - 3,062,032 - - - 3,062,032
Emergency and Disaster Relief - - - - 601,103 102,697 1,407,600
Other - 18,510,433 - - - 29,936,640 78,383,713
Economic Development 58,043 116,086
Solid Waste 484,065 - 5,655 495,375
67,636,283 - - 601,103 42,586,960 154,012,409
Assigned to:
Parks Projects
Public Safety
Public Facilities Projects
Post -Retirement Benefits, Self -Insurance Claims
and Other
Capital Improvement
Other
Unassigned:
Other (deficit)
Total Fund Balance (deficit)
33,558,186
327,409
4,134,818
1,796,000
544,793
33,558,186 6,803,020
327,409
458,539 917,078.
4,134,818.
67,1 16,372
1.796,000
498,269 1,541,331
956,808 75,833,00&
69,054,019 - - - (16,803,535) (18,121,446) 86,959,037
S 199,519,368 $ 138,569,472 $ 89,699,8,05 $ 20,261,478 $ (14,538,673) $ 161,617,128 $ 970,653,069
62
CITY OF MIAM1, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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 fiscalyears 2016, 2017, an
2018 were approximate]$644.1 million. Based on this, the City is required to individually retain a
designated and unassigned fund balance of approxim$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, b
the Governmental Accounting Standards Board (GASB). As of September 30, 2019, 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 $69.1 million as required in accordance with the
City's Financial Integrity Ordinance for a total Fund Balance of$199.5 million.
Use ofEstimates
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 reporte
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 overAppropriations
The following funds' actual expenditures exceeded appropriations for the year ended September 30,
2019:
Fund
Exceeds Budget
Authorization
General:
Capital Improvements and Transportation $ 51,696
Film and Entertainment 1,668
Housing and Community Development 3,391
General Service Administration 93,717
Public Works and Sustainability 1,766,466
Fire - Rescue 173,455
Special Revenue:
Convention Center 73,049
Liberty City Revitalization Trust 94,792
Virginia Key Beach Park Trust 15,842
Debt Service:
CRA Other Special Obligation Bonds 7,242,783
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, 2019
Draft (1) 02-28-2020
Fund Deficits
The following funds had fiend balance deficits in the amounts indicated as of September 30, 2019:
Fund Deficit
Special Revenue:
Emergency Special Revenue Fund $14,538,673
Special Obligation Bonds Projects 8,388,116
General Obligation Bonds Projects 277,074
The fund deficit reported as of September 30, 2019, 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, 2019 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 MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
The City also implemented GASB StatementNo.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 ofresources 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 Agreementxlie 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 2017Lhe 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. 86certain 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 financial impact to the City.
GASB Statement No. 88
65
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
NOTE 2. — DEPOSITS AND INVESTMENTS
Pooled Cash
The City (excluding the Pension Trust Funds and restricted cash balances) maintains a cash managemer
pool for its cash, cash equivalents, and investments in which each fund and/or account or sub -account o
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, base
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 Chapt(Sre2iikyforPublic
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 an(
invest idle funds prudently in US Treasuries and obligations of agencies ofthe 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 investment
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 ofthe pool shares.
66
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
At September 30, 2019, 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 ofthe following:
Investment Type Balance
United States Treasury Notes $ 155,955,827
Federal Home Loan Mortgage Corporation 50,318,765
Federal Home Loan Bank 108,174,375
Corporate Notes 44,271,531
Supranational Notes 29,388,052
Commercial Paper 105,932,474
Money Market Fund 3,326,434
Total Investments 497,367,458
Bank Deposits 159,386,563
Total Pooled Cash, Cash Equivalents and Investments $ 656,754,021
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, 201929.6 nillion 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
the following:
Debt Issue Unspent Debt Proceeds
2009 Homeland Defense
2009 Streets & Sidewalks
2010B Marlins Garage Taxable
2014A-2 CRA SEOPW Tax Increment Rev
2018A CRA OMNI Tax Increment Rev
2018B CRA OMNI Tax Increment Rev
2017 Special Obligation Bond
Citywide Radio Equipment Lease
2018C Streets & Sidewalks
Total
1,531,848
24,159
493,500
4,474,911
8,883,775
7,342,508
3,610,530
3,035,261
4,360,667
33,757,159
The City also has an additional$3.3 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, 2019
Draft (1) 02-28-2020
The City's policy limits the maturity ofan investment to a maximum of five years. As of September 30,
2019, 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.
Investment Type Fair Value
United States Treasury Notes $ 155,955,827
Federal Home Loan Mortgage Corporation 50,318,765
Federal Home Loan Bank 108,174,375
Corporate Notes 44,271,531
Supranational Notes 29,388,052
Commercial Paper 105,932,474
Money Market Fund 3,326,434
Total $ 497,367,458
Weighted Average
Maturity in Years
0.76
0.30
0.34
1.32
0.87
0.22
Less than 1 year
The City's portfolio of Corporate Notes securities includes callable securities. Ifa 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, 2019, the City owned callable securities with a fair value of $2.7
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, 2019, the City recorded an unrealized gain of approximately $0.98
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 an
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, 2019:
Investment Type
Federal Home Loan Mortgage
Federal Home Loan Bank
Corporate Notes
Commercial Paper
Supranational Notes
Money Market Fund
Corp. AA+
Standard &Poor Moody's
Credit Rating Credit Rating
Aaa
AA+ Aaa
A- A3
A-1 P-1
AAA Aaa
AAAm Aa a -mf
Balance
$ 50,318,765
108,174,375
44,271,531
105,932,474
29,388,052
3,326,434
68
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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
(%)
Perlssuer
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
10%
Supranationals where U.S. is
shareholder and voting
member
a
25%
10%
Highest ST or LT Rating Category (A 1/P-1, AAA-/Aaa3, or
equivalent)
Foreign Sovereign
Governments (OECD
countries only) and Canadian
Province s
°�
�'0
°
2/O
Highest ST or Two Highest LT Rating Categories (A-1/P-1, A)
/Aa3, or equivalent)
Corporates
25%
5%
Highest ST or Two Highest LT Rating Categories (A 1/P-1, A -/A
or equivalent)
Municipals
25%
5%
Highest ST or Three Highest LT Rating Categories (SP-1/MIG
/A3, or equivalent)
Agency Mortgage -Backed
Securities (MBS)
of 0
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%
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,
the counterparty's parent) must be rated in the Highest ST Rai
Category (A 1/P-1, or equivalent) If the counterparty is a Fede
Reserve Bank, no rating is required
Money Market Funds (MMFs)
25%
25%
Highest Fund Rating by all NRSROs that rate the fund (AAAmh
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
`Florida Prime" or "SBA')mf,
°
( 25%
N/A
Highest Fund Rating by all NRSROs who rate the fund (AAAm/�
or equivalent)
69
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
As of September 30, 2019, the following issuers represent 5 percent or more of the City's investment
portfolio:
Issuer Percentage
United States Treasury Notes 32%
Federal Home Loan Bank (FHLB) 22%
Federal Home Loan Mortgage Corporation (FHLMC) 10%
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 o
the asset. Investments measured and reported at fair value are classified and disclosed in one of th(
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. Leve13 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, 2019:
Fair Value
Measurements
Using
Significant Other
Obs e rvable Inputs
Investments by Level: Fair Value (Leve12)
Debt Securities:
United States Treasury Notes $ 155,955,827 $ 155,955,82'
Federal Home Loan Mortgage Corp. 50,318,765 50,318,765
Federal Home Loan Bank 108,174,375 108,174,375
Corporate Notes 44,271,531 44,271,531
Supranational Notes 29,388,052 29,388,052
Commercial Paper 105,932,474 105,932,474
Money Market Fund 3,326,434 3,326,434
Total Investments by fair value level $ 497,367,458 $ 497,367,451
70
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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 state
and benefits, without exceeding a prudent level ofrisk. 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 30,2019. Please refer
to Pension Note 10 for additional detail regarding FIPO.
FIPO has adopted the following asset allocation policy as of September 30, 2019:
Asset Class Target Allocation
Core Fixed Income 29.2%
Domestic Equity 25.9%
International Equity 16.8%
Real Estate 11.1%
Absolute Return 13%
Cash and cash equivalents 0%
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 MIAM1, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
Information about the sensitivity of fair values ofFIPO's investments to market interest rate fluctuations
is provided by the following table that shows the distribution ofFIPO's investments by maturity at
September 30, 2019:
U.S U.S Corporate
Treasuries Agencies Bonds
Total
Fair Value $ 45,452,102 $ 115,178 $ 349,544,963 $ 395,112,243
Investment Maturities:
Less than 1 Year - - 6,407,398 6,407,398
1 to 5 year 20,257,350 36,036 84,913,227 105,206,613
6 to 10 year 21,316,844 79,142 146,474,209 167,870,195
More than 10 Years 3,877,908 - 111,750,129 115,628,037
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 controlthis risk.
The following table discloses credit ratings, at September 30, 2019:
Percentage of
Investment Type/ Rating Fair Value Portfolio
U.S. Agencies
U.S. Treasuries
U.S. Government guaranteed*
115,178
45,452,102
0.03%
11.50%
45,567,280 11.53%
Credit risk debt securities:
AAA 93,422,650 23.64%
AA+ 7,753,115 1.96%
AA 2,215,178 0.56%
AA- 5,330,170 1.35%
A+ 10,950,041 2.77%
A 12,784,680 3.24%
A- 30,341,106 7.68%
BBB+ 45,283,026 11.46%
BBB 38,072,769 9.64%
BBB- 7,695,686 1.95%
BB+ and Lower 690,188 0.17%
Not Rated 95,006,354 24.05%
Total 349,544,963 88.47%0
Grand Total
$ 395,112,243 100.00%
*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, 2019
Draft (1) 02-28-2020
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 ofFIPO 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 ofFIPO'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:
Holdings valued
in U.S. Dollars -
Currency International Equities
Swiss Franc $ 22,091,482
Australian Dollar 2,225,694
Brazilian Real 591,089
British Pound Sterling 22,830,958
Canadian Dollar 8,496,106
Danish Krone 3,806,143
Euro 62,321,249
Hong Kong Dollar 17,536,683
Indonesian Rupiah 1,580,290
Japanese Yen 38,593,676
Malaysan ringgit 289,583
Mexican Peso 245,495
Norwegian Krone 1,055,055
Polish zloty 454,842
Singapore Dollar 4,887,515
South Korean Won 7,763,811
Swedish Krona 2,759,816
Taiwan Dollar 7,563,808
Other 2,725,367
Total $ 207,818,662
73
CITY OF MIAM1, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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, 2019, is approximately 51 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 ofthe value ofthe securities plus any
accrued interest and international securities of 105 percent ofthe market value ofthe 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 an
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 of30 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 atSeptember 30, 2019:
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 $ 18,137,598 $ 18,546,575 $ 18,546,575
International Equities 2,628,998 2,774,986 2,774,986
Domestic Corporate Stocks 71,166,460 72,843,374 72,843,374
Domestic Corporate Bonds 19,866,495 20.403,601 20,403,601
Total $ 111,799,551 $ 114,568,536 $ 114,568,536
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, 2019
Draft (1) 02-28-2020
The following table details FIPO investments as of September 30, 2019:
Amount
Investments, at fair value:
Debt Securities (Domestic):
U.S. Treasuries $ 45,452,102
U.S. Agencies 115,178
U.S. Government Obligations 45,567,280
Corporate Bonds:
Corporate Bonds 127,234,292
Asset Backed Securities 6,658,617
Mortgage Backed Securities 91,435,855
Guaranteed Fixed Income 94,364,584
Debt Securities (International):
International Government Bonds 2,701,130
International. Corporate Bonds 27,150,485
Corporate Bonds 349,544,963
Corporate Stocks 494,970,660
International Equity 260,649,422
Mutual Funds -
Real Estate 189,748,114
Private Equity 174,027,722
Absolute Return Funds Total Investments $ 1,514,508,161
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 MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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, 2019:
Fair Value Measurements Using
Quoted Prices
in Actives Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
Investments by level:: Balance (Level l) (Leve12) (Leve13)
Debt Securities:
U.S. treasuries $ 45,452,102 $ - $ 45,452,102 $ -
U.S. agencies 115,178 - 115,178 -
Corporate bonds 154,384,776 - 154,384,776 -
Asset backed securities 6,658,617 - 6,658,617 -
Mortgage backed securities 91,435,855 - 91,435,855 -
International fixed income 2,701,130 2,701,130 -
Total Debt Securities 300,747,658 300,747,658
Equity Securities:
Domestic Equities 316,428,602 316,428,602 -
International Equities 234,280,865 234,280,865 - -
Total Equity Securities 550,709,467 550,709,467
Alternative hive stments:
Private Equity 7,023,033 - 7,023,033
Total Alternative Investments 7,023,033 7,023,033
Totallnvestments by fair value level 858,480,158 $ 550,709,467 $ 300,747,658 $ 7,023,033
Investments Measured at The Net Asset Value (NAV)
Commingled Domestic Fixed Income Funds 94,364,584
Commingled International Equity Funds 26,368,557
Commingled Domestic Equity Funds 178,542,059
Real estate investment funds 189,748,114
Venture capital private equity funds 167,004,689
Total hive stme nts measured at the NAV 656,028,003
Totallnvestments $ 1,514,508,161
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 no
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 ofthe investment's type.
76
CITY OF MIAM1, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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 th
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 base(
upon quoted foreign market prices and translated into U.S. dollars at the exchange rate in effect at
September 30, 2019. Securities which are not traded on a national security exchange are valued by thf
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, 2019. The estimated fair
value ofthese 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.
Investments Measured atNAV
Commingled Domestic Fixed Income Fund$
Commingled International Equity Funds
Commingled Domestic Equity Funds
Real estate investment funds
Venture capital private equity funds
Total hives intents Me as ure d at the NAV $
Investments
Measured atNAV
Unfunde d
Fair Value Commitme nts
$94,364,584
26,368,557
178,542,059
189,748,114
167,004,689
Re de mption
Frequency (if
currently
eligible)
- Daily
- Daily
- Daily
- Quarterly
66,232,030 N/A
$656,028,003
$66,232,030
Re de mptio n
Notice Period
Same day
Same day
Same day
45 Days
N/A
• Commingled domestic fixed income funds with established investment objectives to seek high
income and capital growth by investing in U.S. high yield debt securities over a long-term period.
These funds aim at hedging the foreign exchange risk resulting from the divergence between the
reference currency ofsubfunds and the currency of share classes by using derivatives instruments
• Commingled international equity funds with globally diversified private equity programs that
invest and seeks to measure the stocks representing the lowest 15% of float -adjusted market cap
in key developed countries, excluding the U.S.
• Commingled domestic equity funds which aim to pursue varying strategies in order to diversify
risks and reduce volatility. These funds have a diversified portfolio ofrelative value and event
driven hedge funds with a focus on U.S holdings.
• Real estate investment funds are established for the purpose to acquire, own, hold for investment
and ultimately dispose of investments in real estate. These funds strive to keep a diversified
portfolio of income producing institutional properties throughout the US.
77
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
• Venture capital private equity funds whose investment objective is investing primarily in private
equity investments, including primary and secondary investments in private equity,
infrastructure, and other private asset funds and co -investments in portfolio companies, although
the allocation among those types of investments may vary from time to time.
GESEPension 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 (StaffTrust), as of September 30, 2019, are as follows:
Investment Type
Balance
GESE Staff
Trust Trust
U.S.Government and Agency Securities $ 109,033,726 $ -
Corporate Stocks 507,320,337 3,200,193
Corporate Bonds 91,567,941 1,137,601
707,922,004 4,337,794
Money Market Funds and Commercial Paper 24,162,655
Total Investments $ 732,084,659 $ 4,337,794
Fair Value Measurements —The GESE Trust and StaffTrust categorizes its investments in accordance
with the fair value hierarchy established by GASB 72.
78
CITY OF MIAM1, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
The following table summarizes the valuation of the GESE Trust and Staff Trust investments
accordance with the GASB 72 fair value hierarchy levels as of September 30, 2019:
Investments by level
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
GESE Trust
Balance
Staff Plan
Balance
$ 55,497,474 $
91,567,941
53,536,252
200,601,667
287,150,571
287,150,571
487,752,238
Fair Value Measurements
Using
Quote d
Prices in
Active s
Markets for
Identical
Assets
(Level 1)
$ 24,442,163
- 21,064,529
- 11,931,177
- 57,437,869
Investments Measured at The Net Asset
Value (NAV)
International Equities Commingled 56,897,999 -
Domestic Commingled Funds SSGA 136,455,206 -
Domestic Mutual Fund T Rowe Price 26,816,561
Money Market Funds 24,162,655 -
(Staff) - 4,337,794
Total Investments measured at the NAV 244,332,421 4,337,794
Total Investments Measured at Fair Value $732,084,659 $ 4,337,794
287,150,571
287,150,571
Significant
Other
Observable
Inputs
(Level2)
$ 31,055,311
70,503,412
41,605,075
143,163,798
$344,588,440 $143,163,798
in
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 a]
commercial mortgages, TIPS and foreign debt securities. These securities can typically be valued using
close or last traded price on a specific date (quoted prices in active markets). When quoted prices are
available, fair value is determined based on valuation models that use inputs that include market observa
inputs. These inputs include recent trades, yields, price quotes, cash flows, maturity, credit ratings, a
other assumptions based upon the specifics ofthe investment's type.
Equity Securities -These include domestic and international equities. Domestic securities traded on
national securities exchange are valued at the last reported sales price on the last business day of the f
year. Securities traded in the over -the counter market and listed securities for which no sale was repor
on that date are valued at the last reported bid price. International equities are valued based upon quc
foreign market prices and translated into U.S. dollars at the exchange rate in effect at September 30, 20
Securities which are not traded on a national security exchange are valued by the respective fund mama
or other third parties based on yields currently available on comparable securities of issuers with simil
credit ratings.
79
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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 $ 56,897,999 Monthly
Domestic Commingled Funds SSGA 136,455,206 Daily
Domestic Mutual Fund T Rowe Price 26,816,561 Daily
Money Market Funds 24,162,655 Daily
Staff- (Vanguard) 4,337,794 Daily
Total Investment Measured at the NAV $ 248,670,215
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 eac
quarter. The investment objectives are to achieve rates of return that equal or exceed actuarial interes
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, 2019:
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 MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
Interest Rate Risk —The GESE Trust limits the maturities ofinvestments 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, 2019:
Weighted Avg.
Investment Type Fair Value Maturity Years
Other Government $ 394,000 12.12
Asset - Backed 4,078,000 0.80
Corporate Bonds - Bank 24,311,000 1.53
Corporate Bonds - Finance 20,175,000 3.90
Corporate Bonds - Industrial 31,729,000 5.10
Corporate Bonds - Transportation 2,234,000 5.89
Corporate Bonds - Electric Utility 2,256,000 9.42
US Treasury Bonds 12,395,000 20.12
US Treasury Notes 43,378,000 4.90
US Agency 9,874,000 0.24
Yankee - Finance 1,944,000 1.87
Yankee - Industrial 1,887,000 8.17
Mortgages 47,151,000 12.37
Cash 1,735,000 0.00
Total $ 203,541,000
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 MIAM1, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
At September 30, 2019, 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* $ 55,773,000
US Agency* 9,874,000
Other Government** 394,000
Asset -Backed** 4,078,000
Mortgages** 41,886,000
Aaa 4,124,000
Aa 8,579,000
A 55,915,000
Baa 19,457,000
Ba 441,000
Not Rated 1,285,000
Cash 1,735,000
Total $ 203,541,000
* 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 ofthe 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 of25 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, 2019, 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 of20 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, 2019, the GESE Trust did not have any foreign denominated
fixed income investments.
82
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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 StaffTrust.
The StaffTrust has adopted the following asset allocation policy as of September 30, 2019:
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 Plan limits the maturities of investments to control this risk. The Staff
Plan Investment Policy requires that the average duration of the fixed income asset class be targeted
within a range of three to ten years. In addition, each manager is expected to keep its duratiolr8at +/
months of the benchmark duration. As of September 30, 2019 and 2018, the effective duration of the
passive mutual fund was 6.2 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 managf
the assets for the Staff Trust. As of September 30, 2019, 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 -. Vanguard manages the assets in
accordance with the investment policy statement approved by the trustees.
83
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
The table below summarizes StaffTrust investments by credit rating at September 30, 2019:
Investment Type/Rating Fair Value
Government* $ 723,800
Aaa 44,500
Aa 39,900
A 127,800
Baa 205,400
Total $ 1,141,400
* 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 ar
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, 2019, the
StaffTrust 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.
ElectedOfficer's Retirement Trust (EORT)
The EORT Trust follows the City's investment policy. As September 30, 2019, the investments of
EORT are as follows:
Investment Type Fair Value
U.S. Treasuries $ 3,497,060
Federal Home Loan Mortgage Corporation 1,492,296
Federal Home Loan Bank 1,493,290
Money Market Fund 901,043
Total $ 7,383,689
84
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
The EORT has the following target asset allocation as of September 30, 2019:
AssetClass Target Allocation
U.S Fixed Income
Cash
85%
15%
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, 2019, 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 0.25
Federal Home Loan Mortgage Association 0.25
Federal Home Loan Bank 0.25
Money Market Funds Less than 1 year
The investments at September 30, 2019, were in compliance with the City's investment policy at the
time ofpurchase.
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 muse
have the highest letter and numerical rating as provided for by at least one NRSRO. At September 30,
2019, 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 at
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 maybe invested in the Local Governments Surplus Funds Trust Fund. A maximum of 100 percent
85
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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, 2019, 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, 2019:
Investments by level: Fair Value
Debt Securities:
Federal Home Loan Bank $ 1,493,290
Money Market Fund 901,043
United States Treasury Notes 3,497,060
Federal Home Loan Mortgage Corporation 1,492,296
Total Investments by fair value level $ 7,383,689
Fair Value
Measurements Using
Significant Other
Observable Inputs
(Level 2)
1,493,291
901,04:
3,497,060
1,492,296
$ 7,383,68
86
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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:
Special
Other Capital Obligation Emergency Non -Major
Receivables General Projects Impact Fee Bonds Services Govt Funds Total
Accounts 5 43,333,984 $ 2,074,077 $ 245,942 5333,333 5 - $ 5,425,785 5 51,413,121
Property Tax 2,122,907 - - 181,803 2,304,710
Due From Other Governments 6,856,127 6,682,357 - 3,085,669 11,767,395 28,391,548
Loans Receivable - 13,821,919 1,794 13,823,713
Gross Receivables 52,313,018 8,756,434 245,942 14,155,252 3,085,669 17,376,777 95,933,092
Less: Allowance for
Uncollectibles (18,371,536) (2,072,467) (245,942) (13,821,919) (1,581,716) (36,093,580)
Net Total Receivables $ 33,941,482 $ 6,683,967 5 - $ 333,333 $ 3,085,669 $ 15,795,061 $ 59,839,512
The City, the County, HUD and Parrot Jungle and Gardens ofWatson 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 refinance 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 ofWatson Island, Inc. and its various related entities (now known collectively
as "Jungle Island'), regardinigteralia, (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 PaymentsThe City and Jungle Island
are working on the deferred payment schedule. The City has recorded an allowance for the full
amount of this receivable.
2. Regular Lease Rent Paymenthegan April 1, 2013, whereby Jungle Island will pay the rent
based upon a `Gross Revenues" monthly calculation.
87
CITY OF MIAM1, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
3. Deferred Lease Rent Paymentslue 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 financial 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 ofthe 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 ofth
loan and interest. Given the nature of these loans, collection is not assured, consequently they are no
recognized in the City's financial statements.
A summary of single-family, deferred long-term loans that are not recognized in the City's financial
statements, as of September 30, 2019, are as follows:
Program Loans Outstanding Amount
CDBG 47 loans $ 2,152,712
HOME 519 loans 26,752,350
SHIP 306 loans 16,439,841
Other 37 loans 1,876,124
Total 909 loans $ 47,221,027
Multi -Family Rental Loans
As of September 30, 2019, there are 105 projects aggregating to $93.9 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 financial statements.
88
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
Economic De ve lopme nt Co mme rcial Loans
As of September 30, 2019, there are 8 loans aggregating to $9.4 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 Januarftbf each year and are due, with discounts of one to four percent allowed if paid
prior to March It 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 rat
is certified in September of each year. Taxpayers also have the option ofpaying 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 or
April 1st 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 ofproperty, as established by the Miami -Dade County Property Appraiser, at January
1, 2017, upon which the 2017-2018 levy was based, was $59.0 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 ofprincipaland interest on genera
obligation long-term debt) for the year ended September 30, 2019, 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, 2019. Property taxes that are not considered "available" have been reported as deferre,
inflows in the governmental funds balance sheet.
89
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
NOTE 5. — CAPITAL ASSETS
The following is a summary of changes in capital assets during the year ended September 30, 2019:
l'rin r► Government
Beginning
Balance
Governmental Activities:
Capital assets, not being depreciated:
Land $ 111,388,474
Constnaction in progress 104,174,459
Total Capital Assets, not being depreciated 215,562,933
Depreciable Assets:
Buildings 358,854,774
Improvements 311,585,306
Machinery and equipment 273,752,120
Infrastructure 1,426,180,656
Total capital assets being depreciated 2,370,372,856
Less Accumulated Depreciation for:
Buildings 142,459,092
Improvements 218,590,742
Machinery and Equipment 203,092,824
Infrastructure 908,552,234
Total accumulated depreciation
Total capital assets being depreciated, net
Governmental activities capital assets, net
1,472,694,892
897,677,964
$ 1,113,240,897
Additions/ Retirements/
Transfers In Transfers Out
$ 9,227,188
47,195,235
56,422,423
707,558
7,135,312
15,166,481
12.111,627
Ending
Balance
$ (141,819) $ 120,473,843
(24,728,426) 126,641,268
(24,870,245) 247,115,111
(31,258)
(838,682)
(7,046,299)
35,120,978 (7,916,239)
8,294,707
20,964,952
21,160,802
34,356,358
(4,949)
(147,783)
(6,874,147)
(170)
84,776,819 (7,027,049)
(49,655,841)
(889,190)
359,531,074
317,881,936
281,872,302
1,438.292,283
2,397,577,595
150,748,850
239,407,911
217,379,479
942,908,422
1,550,444,662
847.132,933
$ 6,766,582 $ (25,759,435) $ 1,094,248,044
Depreciation expense was charged to governmental functions as follows:
Function/Program Activities
General Government
Planning and Development
Community Development
Community Redevelpment Areas
Public Works
Public Safety
Public Facilities
Parks and Recreation
Total depreciation expense
Cons ttuctio n Commitme nts
Depreciation Expenses
5 48,016,665
985,031
161,183
1,233,166.
6,962,153
14,213,798
3,345,013
9,859,810
$ 84,776,819
As of September 30, 2019, the City had various construction projects in progress that were not
completed with remaining balances that totaled approximately $49.7 million. Funding of these projects
will be made primarily from proceeds ofthe bond issues, loans, future tax revenues and grants.
90
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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, 2019:
A summary of the changes in capital assets for Department of Off -Street Parking (DOSP) is as follows:
DOSP
Beginning Additions/ Retirements/ Ending
Balance Transfers In Transfers Out Balance
Capital assests, not being depreciated:
Land $ 5,937,211 $ 10,800 8 - $ 5,948,011
Construction in progress 6,355,277 11,210,342 (1,298,976) 16,266,643
Total capital assets, not being depreciated 12,292,488 11,221,142 (1,298,976) 22,214,654
Capital assets being depreciated
Building and structures 68,631,502 389,225 (1,082,442) 67,938,285
Leasehold improvements 11,052,625 1,397,376 (3,641,427) 8,808,574
Furniture and fixtures 874,970 19,995 (119,880) 775,085
Equipment 14,338,103 611,290 (8,903,409) 6,045,984
Total capital assests being depreciated 94,897,200 2,417,886 (13,747,158) 83,567,92E
Less accumulated depreciation for
Building and structures 29,991,698 2,060,388 (646,614) 31,405,472
Leasehold improvements 10,252,472 249,722 (3,531,581) 6,970,613
Furniture and fixtures 555,685 55,054 (121,264) 489,475
Equipment 12,165,939 608,937 (8,849,235) 3,925,641
Total accumulated depreciation 52,965,794 2,974,101 (13,148,694) 42,791,201
Total capital assets being depreciated, net 41,931,406 (556,215) (598,464) 40,776,727
DOSP capital assests,net $ 54,223,894 $ 10,664,927 8 (1,897,440) 8 62,991,381
A summary of changes in capital assets for Civilian Investigative Panel (CIP) is as follows:
Capital assets being depreciated:
Furniture and equipment
Less accumulated depreciation for:
Furniture and equipment
CIP capital assests, net
CIP
Beginning Additions/ Retirements/ Ending
Balance Transfers In Transfers Out Balance
$
$ 13,946 $ - $ 13,946
7,869 - 7,869
$ 6,077 $ $ 6,077
91
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
A summary of the changes in capital assets for Downtown Development Authority (DDA) is as follows:
DDA
Beginning
Balance
Additions/
Transfers In
Retirements/
Transfers Out
Ending
Balance
Capital assets being depreciated:
Furniture and equipment $ 728,413 $
Less accumulated depreciation for:
Furniture and equipment 504,625
DDA capital asserts, net
38,344 S
53,217
$ 766,757
557,842
$ 223,788 $ (14,873) $
- $ 208,915
A summary of changes in capital assets for Bayfront Park Management Trust (BFP) is as follows:
Capital assets, not being depreciated:
Land
Total capital assets, not being depreciated
Capital assets, being depreciated:
Buildings
Public domain and system infrastructure
Machinery and equipment
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings
Public domain and system infrastructure
Machinery and equipment
Total accumulated depreciation
Total capital assets being depreciated, net
BFP capital assets, net
BFP
Beginning Additions/ Retirements/ Ending
Balance Transfers In Transfers Out Balance
$ 516,129 $
516,129
- $ 516,129
516,129
2,637,934
8,748,917
840,083
12,226,934
1,599,308
3,885,591
584,327
6,069,226
6,157,708
57,284
34,373
91,657
52,758
369,661
47,132
469,551
(377,894)
2,637,934
- 8,806,201
- 874,456
- 12,318,591
- 1,652,066
- 4,255,252
- 631,459
- 6,538,777
- 5,779,814
$ 6,673,837 $ (377,894) $ - $ 6,295,943
92
CITY OF MIAM1, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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 $ 702,202 $
$ 702,202
Less accumulated depreciation for:
Furniture and equipment 143,170 75,020 - 218,190
CG BID capital assests, net $ 559,032 $ (75,020) $ - $ 484,012
A summary of changes in capital assets for Wynwood Business Improvement District (WBID) is as
follows:
Capital assets being depreciated:
Furniture and equipment
Less accumulated depreciation for:
Furniture and equipment
WBID capital assests, net
WBID
Beginning Additions/ Retirements/ Ending
Balance Transfers In Transfers Out Balance
217,591 $ $ 217,591
11,078 11,078
206,513 $ $ 206,513
93
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
Summary of the discretely presented component units capital assets at September 30, 2019 are a;
follows:
DOSP CIP DDA BFP CGBID WB1D Total
Capital Assets:
Non -depreciable $ 22,214,654 $ - $ - $ 516,129 $ - $ - S 22,730,783
Depreciable, net 40,776,727 6,077 208,915 5,779,814 484,012 206,513 47,249,468
Total $ 62,991,381 $ 6,077 $ 208,915 $ 6,295,943 $ 484,012 $ 206,513 $ 69,980,251
Depreciation expenses were charged to the discretely presented component units as follows:
Entity
DOSP
CIP
DDA
BFP
CGBID
WBID
Total depreciation expense
Depreciation Expense
2,974,101
7,869
53,217
469,551
75,020
11,078
3,507,947
94
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
NOTE 6. — ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable and accrued liabilities reported in the governmental funds balance sheet at Septembf
30, 2019, consisted ofthe following:
General
Other Capital
Projects
Emergency
Impact Fee Services
Non -Major
Governmental
Funds
Total
Accounts Payables
Retainage
Salaries and Benefits
Total
$16,089,565
101,964
20,559,862
$ 36,751,391
$8,959,891 $2,163,882
2,626,185 552,797
$ 11,586,076 $ 2,716,679
$823,392
203,332
42,238
$ 1,068,962
S10,658,467
2,356,174
513,555
$ 13,528,196
$38,695,197
5,840,452
21,115,655
$ 65,651,304
NOTE 7. — INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The balances reflected as due from/due to other funds reported as of September 30, 2019 are as follows:
Receivable Fund
General Fund
General Fund
General Fund
Payable Fund Amount
Other Capital Projects
Emergency Services
Non -Major Governmental Funds
3,790,189
17,567,616
19,760,743
Total $ 41,118,548
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) paymer
between funds are made. The interfund payable balance of $21,745,950 is attributed to expenditure;
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 ofinterfund transfers reported for the fiscal year ended September 30, 2019:
Transfer Out
General
Nonmajor Governmental Funds
Total
Transfer In
General
Non -Major
Other Capital Special Obligation Governmental
Projects Bonds Funds
$ 19,355,000
3,830,006 12,063,500
$ 28,267,000
10,351,000
$15,439,000
8,740,783
$ 3,830,006 $ 31,418,500 $ 38,618,000 $ 24,179,783
Total
$106,767,000
57,907,078
$ 164,674,078
95
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
Transfers are used to (a) move revenues from the fund that statute or budget requires to collect them t
the fund that statute or budget requires to expend them, (b) move receipts restricted for debt service fror
the funds collecting the receipts to the debt service fund as debt service payments become due, and (
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 $63.1 million. This total was
comprised of transfers of $19.4 million for Other Capital Projects fund, $15.4 million for other Non -
Major Governmental funds and $28.3 million for Special Obligation Bonds (SOB).
The $19.4 million transferred to Other Capital Projects were allocated to various capital improvement
projects. $3.4 million are General fund contributions for capital improvements to Public Facilities, $3.7
million for Parks Department capital improvements, $2 million for the Building Department e-Plan
project, $1 million for the Overtown Youth Center construction and expansion and $1.5 million for the
Office of Capital Improvements projects. $1.6 million are marina revenues allocated to cover Public
Facilities capital requirements. $2.4 million of Stormwater Utility Fees collected from Miami -Dade
County were transferred for Stormwater related capital improvements. $2.5 million collected as parking
surcharge were allocated to cover Streets and Sidewalks capital projects. Finally, $0.6 million of local
option gas tax was transferred for various capital improvements.
The $15.4 million transferred from the General fund to other Non -Major funds consists of several
allocations. The most relevant ones are the following: $1.8 million transferred to General Special
Revenue for one time payment to GESE and FIPO pensions, $1.5 million contributed to the Emergency
Fund for expenses related to Hurricane Dorian, $4 million transferred from General Fund to citywide
festivals, special events, Camillus House Bed and Mat and Anti -Poverty Initiative programs.
Approximately $4.4 million to Police Special Revenue fund to cover cost allocation and some deficits of
programs; such as, E-911 and COPS. Nine hundred thousand dollars contributed to Housing and
Community Development Social Services and $0.7 million for Fire Rescue Services cost allocation. $1.4
million was allocated as fund balance rollover to various Special Revenue budgets.
The $28.3 million transferred from General Fund to Special Obligation Bonds fund for the payment of
various debt services; such as, $9.9 million from Public Service Tax, $3.4 million from Parking Surcharge
and Local Option Fuel Tax to Streets Bond, $6.9 million contributed to the Vehicle Lease debt service,
$1.1 million designated to FDEP Wagner Creek loan, $2.2 million allocated to Flex Park Remediation,
and $1.9 million allocated to Citywide Radio Communication system. $2.9 million from General Fund
contribution to various SOB debt. Payments for debt service are an allowable use of these revenue
sources.
Also included in this fiscal year's transfers is $35 million from Non -Major Governmental funds. This
total was comprised of $3.8 million to the General fund, $8.7 million to Non -Major Governmental funds,
$12.1 million to Other Capital Projects and $10.4 million to Special Obligation Bonds Debt Service.
The $3.8 million to the General fund from Non -Major Governmental fund consists primarily of $3
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 $800,000 from the
SEOPW CRA to reimburse the City for the Sunshine Loan payment related to Gibson Park.
96
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
The most relevant transfers included in the $8.7 million to other Non -Major Governmental funds are: $7.2
million from the OMNI and SEOPW CRAB Special Revenue funds to the CRA Debt Service funds to
cover the CRAB bond payments and $1.5 million from the Transportation and Transit Special Revenue
fund to the Transportation and Transit Capital fund.
The $12.1 million to Other Capital Projects includes: $7.3 million contribution from Public Works
Special Revenue Fund services to Streets and Sidewalks and Storm Sewers funds, $1 million to
Downtown Development Supplemental Fee, $1.6 million from Net Offices and Code Enforcement to
replace CityView system, and $900,000 from Tree Trust funds to the Public Works projects. $500,000 are
to cover non reimbursable repairs for Public Facilities projects. $600,000 contribution from Public
Facilities Surplus Rollover project to CIP for OCI project.
Finally, in FY 2019, $10.3 million were transferred out of Non -Major Governmental funds Special
Obligation bonds as follows; $6.1 million Transportation and Transit contribution to Streets Bond
Payment and $4.2 million from CRA contribution to SOB Debt
NOTE 8. — LONG-TERM OBLIGATIONS
Changes in Long -Term Obligations
The following is a summary of changes in long-term obligations reported for the year ended September
30, 2019:
Restated
Beginning Ending Due within
Primary Government Balance Additions Reduction Balance One Year
General Obligation Bonds $ 2,460,000 $ $ (2,460,000) $ $
Notes from Direct Placements $ 343,093,092 $ 877,473 $ (30,076,573) $ 313,893,992 $ 34,460,825
Special Obligation and Revenue Bonds,
Loans and Leases 320,160,000 107,480,000 (139,620,000) _ 288,020,000 22,365,000
665,713,092 108,357,473 (172,156,573) 601,913,992 56,825,825
Bond Premium (Discounts) 4,869,802 5,476,069 (1,217,644) 9,128,227 -
Total Bonds, Loans and Leases 670,582,894 113,833,542 (173,374,217) 61 1,042,219 56,825,825
Other Liabilities:
Compensated Absences 57,608,278 25,884,398 (18,539,680) 64,952,996 6,074,567
Claims Payable and other liabilities 281,366,573 62,123,268 (133,700,365) 209,789,476 37,232,959
Other Post Employement Benefits 596,966,515 357,337,132 (90,677,043) 863,626,604 -
Net Pension Liability 860,752,460 106,872,346 967,624,806
Total Governmental Activities
Long -Term Liabilities
$ 2,467,276,720 $ 666,050,686 $ (416,291,305) $ 2,717,036,101 $ 100,133,351
97
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
The City's outstanding notes from direct placements related to governmental activities of $313,893,991
contain a provision that in an event of default, outstanding amounts become immediately due ifthe City is
unable to make payment.
Claims payables, compensated absences, net pension liability, and other post -employment benefits ar
generally liquidated by the General Fund.
Claims payable balance of $209.8 million includes an accrual of $1.4 million for pollution remediation
obligations, which are obligations to address the current or potential detrimental effects of existing
pollution and $22.7 million for potential legal claims as discussed in Note 12. Claims payables of $185.7
million reported in connection with the City's self-insurance program is discussed in Note 9.
98
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
Bonds, Loans and Leases Outstanding The following presents the City's bonds, loans and leases
outstanding at September 30, 2019:
Purpose of
DESCRIPTION Issue
General Obligation Bands:
Homeland Defense/Neighborbood CIP
Series 2009 (Limited) Homeland Defense
General Obligation Refunding Bond Series 2015 Refunding
General Obligation Refunding Bond Series 2017 Refunding
Total General Obligation Bonds
Special Obligation and Revenue Bonds, Loans and Leases:
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 201013
Special Revenue Bonds
Series 2007
Special Revenue Bonds
Series 2009
Special Obligation Refunding Bonds
Series 2018A
Taxable Special Obligation Refunding Bonds
Series2018B
Taxable Special Obligation Revenue Bonds
Series 2018C
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
Total Special Obligation Bonds, Revenue
Total Bonds, Loans and Leases
Pension
Refunding
Parking
Parking
Street & Sidewalks
Street & Sidewalks
Rebinding
Refunding
Refunding
Refunding/Port
Tunnel
Refunding
Park Improvements
Refunding
Refunding
Refunding
Rebinding
Redevelopment
Redevelopment
Redevelopment
Redevelopment
Vehicle Lease
Vehicle Lease
Vehicle Lease
Equipment Lease
Radio System Lease
Wagner Creek
Bonds. Loans and Leases
Maturity
Date
Amount
Issued
Outstanding
Balance
Interest Rate
Range
1/112019 $ 51,055,000 $ 0 5.000%
1/112028 57,240,000 51,670,000 2.640%
1/1/2029 114,380,000 83,645,000 2.1701/0
22 2,675,000 135,315,0 00
12/1/2020 72,000,000 7,550,000 7.200%
12/1/2025 37,435,000 6,095,000 7.000110
7/1/2039 84,540,000 84,540,000 5.000%-5.250%
7/1/2027 16,830,000 475,000 5.935%
I/1/2037 80,000,000 0 4.250%-5.250%
I/I/2039 65,000,000 0 4.250%-5.625%
111/2037 57,405,000 57,405,000 5.000%
1/1/2039 42,620,000 42,620,000 3,461%-4.808%
1/1/2039 7,455,000 7,455,000 3.836%4,808%
3/1/2030 44,725,000 35,675,000 5.000%
2/1/2031 70,645,000 7,595,000 4.794°A-4.966%
1/112032 27,160,000 24,120,000 2560%
7/1/2026 18,049,380 7,138,449 3.280%
2/1/2031 59,310,000 57,235,000 2.780%
12/1/2025 7,180,000 7,055,000 3.150%
7/1/2027 16,555,000 16,240,000 3.750%
3/1/2030 50,000,000 38,610,000 5.000%
911/2029 10,000,000 8,820,000 3.250%
9/1/2029 15,000,000 13,995,000 4.490%
N/A 1,708,864 1,708,864 0.000%
1/112021 10,644,628 4,295,626 1..6765%
1/1/2022 10,054,922 6,132,362 2.1856%
1/1/2023 11,270,011 9,067,913 3.1032%
6/1/2022 373,938 224,024 4.8810%
1/1/2024 12,100,000 8,801,557 2.0590%
N/A 13,745,199 13,745,199 0.000%
841,1106,942 466,598,994
$ 1.064,481,942$ 601,913,994
99
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
Annual De bt Service Requirements to Maturity
At September 30, 2019, the annual debt service requirements for all bonds, loans and leases, other the
state revolving fund loan for uncompleted Wagner Creek project, over the life ofthe debt is listed below:
Year
Ended
September 30,
2020
2021
2022
2023
2024
2025-2029
2030-2034
2035-2039
Total
Notes for Direct Placement
Principal Interest
$ 34,460,825
38,150,298
42,602,777
26,079,665
27,153,933
122,161,918
21,575,711
1,708,864
$ 7,709,673
6,876,181
5,902,249
5,020,225
4,297,868
10,406,573
591,541
$ 313,893,991 $ 40,804,310
Long -Tenn Debt Issued
Special Obligation,
Revenue Bonds,
Loans and Leases
Principal Interest
$ 22,365,000
16,660,000
9,295,000
9,745,000
10,225,000
68,730,000
72,580,000
78,420,000
$ 13,995,184
12,882,363
12,212,457
11,753,557
11,269,971
47,820,514
29,622,280
10,688,666
$ 288,020,000 $ 150,244,992
Total
Principal Interest
$ 56,825,825
54,810,298
51,897,777
35,824,665
37,378,933
190,891,918
94,155,711
80,128,864
$ 21,704,857
19,758,544
18,114,706
16,773,782
15,567,839
58,227,087
30,213,821
10,688,666
$ 601,913,991 $ 191,049,302
The following is a summary of debt issued during the fiscal year September30, 2019:
$57,405,000 Special Obligation Refunding Bonds, Series 20181Dn 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 ofth
series 2008A Bonds.
$42,620,000 Taxable Special Obligation Refunding Series 20181&i 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.
$7,455,000 Taxable Special Obligation Revenue Series 2018CFurthermore, 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 co
of issuance ofthe Series 2018C Bonds.
$13,745,199 State Revolving Loan Wagner Ctle.eOn 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.
100
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
De bt Authorize d but Unis s ue d
As of September 30, 2019, 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, 2019, the City has approximately $8,668,601 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 Welcomf
Center and Museum Complex.
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 maximun
principal amount of $18,000,000. This was done to reimburse the City from the proceeds of such specia
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 Wesi
Community Redevelopment Agency, and South Florida Regional Transportation Authority.
On November 7, 2017, a referendum election was held and the voters approved issuance of Genera
Obligation Bonds in an aggregate principal amount not exceeding $400,000,000 with interest payable ai
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 ofunderground oftransmission lines.
101
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
Defeasance of Long -Term Debt
The City defeased certain debt involving advance refunding. The proceeds of the new bonds were place
in an irrevocable trust to provide for all future debt services payments on the defeased bonds. At
September 30, 2019, the following outstanding bonds are considered defeased:
Type
GOB Refunding Bonds
SOB Refunding Bonds
SOB Taxable Pension
SOB 2007 Street &Sidewalk
SOB 2009 Street &Sidewalk
Taxable SOB Parking Bonds
Total Defeased
Date of
Series Defeasance
2009
2011A
2009
2007
2009
2010B
6/29/2017
11/28/2017
12/5/2017
11/15/2018
11/15/2018
3/22/2018
Call Date
1/1/2019
2/1/2021
12/1/2019
1/1/2019
1/1/2019
7/1/2020
Principal
Amount
Defeased
$ 32,370,000
52,975,000
6,385,000
63,595,000
56,725,000
14,745,000
Principal
Outstanding
52,975,000
6,385,000
14,745,00C
$ 226,795,000
$ 74,105,000
102
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
Capital Lease Obligations
The City has entered into three agreements as lessee for financing the acquisition of police and flee
vehicles in the amount of $31,969,560. The lease agreement qualifies as a capital lease for accountin
purposes and, therefore, have been recorded at the present value of their future minimum lease paymer
as of the inception date. At year end the cost and accumulated depreciation of assets under lease we
$32.0 million and $16.5 million respectively.
The following is a schedule showing the future minimum lease payments under capital lease by years any
the present value ofthe minimum lease payments as ofSeptember 30, 2019:
YearEnding September30,
2020 $ 6,788,736
2021 6,713,420
2022 4,480,541
2023 2,355,591
Totalminimum lease payments 20,338,287
Less: amount representing interest (842,387)
Present value ofminimum lease payments $ 19,495,900
The City has entered into an agreement as lessee for financing the acquisition of 800 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 o
$12,100,000. The lease agreement qualifies as a capital lease for accounting purposes and, therefore, ha
been recorded at the present value of their future minimum lease payments as of the inception date. A
fiscal year end, $9 million of assets were acquired to be prepared for its intended use; therefore, there i
no depreciation to report. Additionally, at year end there was $3.1 million of lease proceeds being held in
escrow.
The following is a schedule showing the future minimum lease payments under capital lease by years an,
the present value ofthe minimum lease payments as ofSeptember 30, 2019:
YearEnding September30,
2020 1,861,516
2021 1,861,516
2022 1,861,516
2023 1,861,516
2024 1,861,516
Totalminimum lease payments 9,307,581
Less: amount representing interest (506,024)
Present value ofminimum lease payments $ 8,801,557
The City has entered into an agreement as lessee for financing the acquisition of Technology Equipmen
as part of the ongoing efforts to upgrade and enhance backup data servers for the City. The lease
agreement qualifies as a capital lease for accounting purposes and, therefore, have been recorded at
103
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
present value of their future minimum lease payments as of the inception date. At year end the cost an(
accumulated depreciation of assets under lease were $373,938 and $99,717 respectively.
The following is a schedule showing the future minimum lease payments under capital lease by years an,
the present value ofthe minimum lease payments as ofSeptember 30, 2019:
YearEnding September30,
2020 82,080
2021 82,080
2022 82,080
Total minimum lease payments 246,240
Less: amount representing interest (22,216)
Present value ofminimum lease payments $ 224,024
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 nor
exempt property value. At September 30, 2019, the statutory debt limitation of assessed non-exemp
property value for the City amounted to $8.5 billion providing a debt margin of $8.4 billion after
consideration of $135.3 million of general obligation bonds outstanding at September 30, 2019 and
adjusted for the fund balance of$9.6 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 the
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, 2019, the City had approximately $20.:
million available in the sinking fund to meet this requirement. Principal and interest to be paid in
subsequent years totals $304.2 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 $57.4 million in
Special Obligation Revenue Bonds, Series 2018A and $42.6 million Special Obligation Revenue Bonds,
Series 2018B, and $7.4 million taxable special obligation revenue bonds, Series 2018C. 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. Interest pa
for the current year was $3.2 million. The current year pledged revenues were (i) $15.1 million (ii) $7.7
million and (iii) $4.8 million respectively. Principal and interest to be paid in subsequent years totals $87
million on the Series 2018A bonds, $69.5 million on the Series 2018B bonds, and $11.4 million on the
Series 2018C 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.
Series 2010B, and $16.6 Special Obligation Parking Refunding, Series 2018. The proceeds from the
104
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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 servic
payments began on January 1, 2012. Principal and interest to be paid in subsequent years totals $150
million on the Series 2010A bonds, $0.5 million on the Series 2010B bonds, and $19.4 million on the
Series 2018 bonds. Principal payments commenced in fiscal year 2016. The total pledge revenue
collected during the year was approximately $9.6 million and total principal and interest payments during
the year were $ 0.76 million and $5.07 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 exercis(
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 finance a portion of
the costs of acquiring real estate and constructing thereon an office building to be leased from the City b`
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 a
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. Leas
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 Genera
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 ofthe United States are pledordingly, the bond is not reported as liabilities in
the accompanying financial statements.
At September 30, 2019, the amount of conduit debt outstanding related to the Rental Revenue Bonc
totaled $2.95 million.
Debt Issue Beginning Balance Principal Payment Outstanding Balance
Series 1988 $ 2,950,000 $ 2,950,000 $
105
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
HEALTH FACILITY AUTHORITY (UFA') — 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. Proceeds from these bond issues were used to finance construction
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 ofthe HFA do not constitute an indebtedness, liability or pledge ofthe faith or credit of the HFA
or the City. The HFA does not issue stand-alone audited financial statements.
At September 30, 2019, the City of Miami Health Facilities Authority conduit debt activity and
outstanding balance totaled $41.8 million.
Debt Issue
Series 2017
Beginning Balance Principal Payment
$ 42,755,000
$ 920,000
Outstanding Balance
$ 41,835,000
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 2019 are as follows:
Bonds Payable
Premium (discount)
Compensated absences
Other post -employment
benefit liability (OPEB)
Loan from
primary government
Restated
Beginning
Balance Additions Reductions
$ 63,505
(624)
816
509
1,050
$ 65.256
30
779
809
$ 1,670
648
11
150
$ 2,479
Ending
Balance
$ 61,835
(594)
947
498
900
Due Within
One Year
$ 1,760
306
150
$ 63,586 $ 2,216
. The beginning OPEB balance was restated at October I, 2017 for the implementation for GASB Statement 75, See Note 1.
On September 24, 2009, the City Commission adopted ordinance 13092 authorizing DOSP to issue up tc
$70.0 million in revenue bonds for the purpose of refunding the then outstanding Series 2008 bonds. Or
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 addition
construction costs on the Courthouse Center Garage, and (4) pay fees to terminate the existing intere.
rate swap agreement in connection with the Series 2008 bonds. DOSP refunded the Series 2008 variab
106
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
rate debt with Series 2009 fixed rate debt. The Series 2009 Revenue Bonds are secured by the of
revenues ofthe parking facilities and, accordingly, are included in the accounts ofDOSP.
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, 2019 is $0.9 million.
The following summarizes the debt service to maturity of outstanding DOSP debt atSeptember 30, 2019:
Year Ending Bonds Loan
September 30, Principal Interest Total Principal
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 2,120,000 2,606,604 4,726,604 150,000
2025-2029 12,200,000 11,339,663 23,539,663 150,000
2030-2034 15,510,000 7,832,294 23,342,294 -
2035-2039 19,830,000 3,293,455 23,123,455
2040-2044 4,585,000 - 4,585,000 -
Total 5 61,835,000 $ 36,420,657 $ 98,255,657 $ 900,000
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 absent
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 liabit
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 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 occurrenc
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.
107
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
The City's master property insurance program provides fora total of $100 million in insurance limits. The
City's total insured value on covered property is $535 million. Included in this amount is $35 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
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 th(
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 $81.9 million for all
other perils. The Marlins Stadium parking garage program has a $25,000 all other perils deductible, and
deductible of5 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 budget]
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, 2019, the total estimated undiscounted liability is recorded in the government -wide
financial statements. Changes in the claims and other litigation related liability amounts for 2018 and
2018 were as follows:
Fiscal Year Beginning of
Ended Fiscal Year
September 30, Liability
2019 $ 281,366,573
2018 209,426,429
Current Year
Claims and Changes
in estimates
$ 62,123,268
160,812,867
Claim
Payments
$ (133,700,365)
(88,872,723)
Balance at
Fiscal Year End
$ 209,789,476
281,366,573
108
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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 (`FIFO'), 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
(`FORT'). Thereafter the glans."
Basis of Accounting The financial statements for the Plans are prepared using the accrual basis of
accounting. All Plans are reported as pension trust funds in the City's financial statements. Plan member
contributions are recognized in the period 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 ofthe Plans.
Method Used to Value Investmentlnvestments 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 measuremen
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 financial statements for the plan can be obtained from the FIPO Trust Fund, 1895 SW 3
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 ofthe 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 2,218
Current members 2,003
Total 4,221
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 witl
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
109
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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 5(
with ten or more years of creditable service, or rule 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 final 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 �/z percent for members who retired prior to October 1, 2010) of member's average
final 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 final
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 ITS 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, 2019
approximately $6.7 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 1*ic(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 DROF
payment is based on the member's average final compensation. The member's contribution and the Cit`
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
110
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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 ofretirement.
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 ofthe 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, 2019 amounted to $145.:
million.
Contributions and Funding Policies
Police officer members ofFIPO 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 FIPC
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) ofthe City Code. Contributions to the FIPO COLA accounts are
authorized pursuant to Section 40.204 ofthe 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.
111
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
The payroll for employees covered by FIPO for the year ended September 30, 2019 was approximately
$166.7 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, 2019, 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, 2019, are as follows:
FIPO
Total pension liability $ 2,229,656,108
Plan fiduciary net position (1,561,208,562)
Net pension liability $ 668,447,546
Actuarial Assumptions
The total pension liability was based on an October 1, 2018 actuarial valuation rolled forward to the
measurement date of September 30, 2019, 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, 2019
3.25%
Entry age cost method
3.25%-9.75%, average, including inflation
Amount varies annually with the adjustment on January
7.34% compounded annually, net ofpension 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, 2018 valuations was based on the results of an actuark
experience study for the period October 1, 2014 to September 30, 2017.
112
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
The long-term expected rate of return on pension plan
Actuarial Standard of Practice (ASOP) No.2S77lection
Pension Obligation. ASOP No.27 provides guidance
investment rate of return. Consideration was given to
returns, net of pension Plan investment expense and
historical investment data and Plan performance.
investments was determined in accordance with
of Economic Assumptions for measuring
on the selection of an appropriate assumed
expected future real rates of return (expected
inflation) for each major asset class as well as
Best estimates of real rates of return for each major asset class included in the pensions Plan's targe
asset allocation as of September 30, 2019 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
2.40%
5.40%
5.80%
4.30%
7.00%
Real rates of return are net of the long-term inflation assumption of3.25% for 2019
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 fiscal year 2019, plan provisions have been partially restored to the provisions that existed prior to
10/1/2010. Benefit accrual multiplier of 3.5% instead of3.0% for Credited Service after 15 years (Note
that the 3.5% multiplier was bargained back for membership in the years subsequent to the City's benefit
cuts under financial urgency; however, this change impacts those who left the system during the interim
period)
113
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
Changes in Net Pension Liability
The following table shows the FIPO changes in net pension liability based on the
provided to the City at September 30, 2019:
Balance at 10/01/2017, as restated*
Changes for the year:
Service Cost
Interest
Changes of benefit terms
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 09130/2018
FIPO
Increase (Decrease)
actuarial information
Total Pension
Liability
(a)
$ 2,120,924,585
30,947,329
152,192,907
55,386,337
32,027,954
(5,024,797)
(156,798,207)
108,731,523
Plan Fiduciary Net
Position
(b)
$ 1,566,682,376
62,694,851
16,309,563
74,467,958
(156,798,208)
(2,147,978)
(5,473,814)
$ 2,229,656,108 $ 1,561,208,562
"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)
$ 554,242,209
30,947,329
152,192,907
(55,386,337)
32,027,954
5,024,797
(62,694,851)
(16,309,563)
(74,467,958)
1
2,147,978
114,205,337
$ 668,447,546
The following table illustrates the impact of interest rate sensitivity on the FIPO net pension liability as
of September 30, 2019:
1% Decrease
(6.34 %)
Net Pension Liability $ 907,554,996
Current Discount
Rate
(7.34%)
$ 668,447,546
1% Increase
(8.34%)
$ 466,936,209.
114
CITY OF MIAMI, FLORIDA
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September 30, 2019
Draft (1) 02-28-2020
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pension
For the year ended September 30, 2019, the City recognized pension expense of $149 million. At
September 30, 2019 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
FIFO
Deferred Outflow of Deferred Inflows of
Resources Resources
$
57,079,628 $ 279,444
27,489,307 4,306,969
35,869,601 14,169,471
$
120,438,53E $ 18,755,884
Amounts reported as deferred outflows ofresources and deferred inflows of resources related to pension
will be recognized in pension expense as follows:
Yearended September30:
2020 $21,516,702
2021 $22,248,635
2022 $27,865,835
2023 $16,858,234
2024 $9,335,653
Thereafter $3,857,593
GENERAL EMPLOYEES AND SANITATION EMPLOYEES REI7RE VIENT TRUST (GF.S'E Mat)
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 ofthe Plan.
The audited financial statements for the GESE Plans can be obtained from the pension board at: GESI
Trust, 2901 Bridgeport Avenue, Coconut Grove, Florida 33133.
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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, 2018, the date of the most recent actuarial valuation report, membership in the GESE
consisted ofthe following:
Members
Retirees and beneficiaries currently receiving benefits 1,947
Terminated members entitled to benefits but not yet receiving benefits 262
Current members 1,959
Total 4,168
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 agf
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 o
creditable service or age 60 and 10 years of continuous creditable service or a combination of at least ter
years of creditable service plus attained age equaling 80 points (Rule of80).
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 ofaverag(
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 ofthe City Code.
Cost of Living Adjus tm dilCOLA)
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
116
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
of $200 added to the previous COLA benefit, provided the retiree's first anniversary of retirement has
been reached.
Deferred Retirement Option Plc(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, 2019 amounted to $1.2 million. The DROP balance for the year ended September 30, 2019 amounted
to $33.5 million.
BACKDROP Op tin (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, 2019
amounted to $95,154.
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 GESI
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 4C
117
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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 serve
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, 2019 was
approximately $111.1 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, 2019, the
average active employee contribution rate was 9.8 percent of annual pay, and the City's average
contribution rate was 36.8 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 ofthe net pension liability ofthe GESE Trust at September 30, 2019, are as follows:
GESE Trust
Total pension liability $ 992,241,080
Plan fiduciary net position (704,529,898)
Net pension liability $ 287,711,182
ActuarialAssumptions
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 September 30, 2018
Inflation 3.5%
Projected salary increases 4% - 8.75%, including inflation
Assumed rate ofreturn on 7.6% per year, net of pension plan investment expense and inc]
inve s tme nts inflation
The rates of mortality are according to the following tables:
Pre -Retirement Mortality
118
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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 Tenn 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 expecte(
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, 2019 are summarized in the following table:
Long -Term Expected
Asset Class Real Rate of Return
U.S. Large Cap Equity
U.S. Small Cap Equity
International Equity
Cash and Other
Core Bonds
Discount Rate
8.40%
9.25%
8.75%
2.10%
5.00%
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.
119
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
Changes in Net Pension Liability
The following table shows the GESE Trust changes
information provided to the City at September 30, 2019
Balance at 10/01/2018
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 09/30/2019
in net pension liability based
GESE Trust
Increase (Decrease)
on the
Total Pension
Liability
(a)
960,959,524
14,547,783
70,181,377
21,593,105
(75,040,709)
Plan Fiduciary
Net Position
(b)
667,854,473
40,879,285
10,847,473
60,276, 829
(75,040,709)
(287,453)
31,281,556 36,675,425
$ 992,241,080 $ 704,529,898
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
Net Pension
Liability
(a) - (b)
$ 293,105,051
14,547,783
70,181,377
21,593,105
(40,879,285)
(10, 847,473)
(60,276,829)
287,453
(5,393,869)
$ 287,711,182.
actuarial
The following table illustrates the impact of interest rate sensitivity on the GESE Trust net pension
liability as of September 30, 2019:
I % Decrease
(6.6%)
Net Pension Liability $ 395,196,676
Current Discount
Rate 1 % Increase
(7.6%) (8.06%)
$ 287,711,182
197,221,555
120
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pension
For the year ended September 30, 2019, the City recognized pension expense of $34.7 million. At
September 30, 2019 the City reported deferred inflows and outflows ofresources from the following
source:
GESE Trust
Deferred Outflows of Deferred Inflows of
Resources Resources
Differences between expected and actual
experience $ 27,976,296 $ 1,489,318
Changes of assumptions 40,686,825 166,731
Net difference between projected and actual
earnings on pension plan investments - 25,796,140
Employer contribution made subsequent to
measurement date 43,526,929 -
Total $ 112,190,050 $ 27,452,189
There is $43.5 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, 2020. Other amounts reported related to
pensions will be recognized in pension expense as follows:
Year ended September30:
2020 $14,929,462
2021 7,479,020
2022 9,253,992
2023 7,408,603
2024 2,139,855
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 ofthe GESE participate in this plan.
As of October 1, 2018, the date of the most recent actuarial report valuation, membership in the EBP
consisted of33 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
121
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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, 2019 was
approximately $111 million. The City's contribution to the plan for the year ended September 30, 2019
was $587,959 and plan benefit payments were $587,959. 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, 2019, the City's average contribution rate was 0.53% 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 ofthe net pension liability ofthe GESE EBP at September 30, 2019, are as follows:
GESE EBP
Total pension liability $ 8,020,884
Plan fiduciary net position
Net pension liability $ 8,020,884
ActuarialAss umptions
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 September 30, 2018
Inflation 3.50%
Projected salary increases 4% - 8.75%, including inflation
Investment rate of re turn 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
122
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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 ofreturn is not applicable.
Discount Rate
The discount used to measure the total pension liability was 4.09 percent. Since the Excess plan has nc
assets, there are no assets available to make projected future benefit payments of current plan member
Therefore, the applicable municipal bond index rate of 4.09 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, 2017 was applied to all periods of projected benefit payments. As
result, the Single Equivalent Interest Rate (SEIR) is also 4.09 percent. The SEIR at the beginning of the
measurement period was 3.57 percent based on the applicable municipal bond index rate of 3.57 percen
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, 2019:
GESE EBP
Increase (Decrease)
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability
(a) (b) (a) - (b)
Balance at 10/01/2017 $ 11,152,247 $ - S 11,152,247
Changes for the year:
Interest 387,640 - 387,640
Differences between expected and
actual experience (2,359,812) - (2,359,812)
Changes of assumptions (571,232) (571,232)
Contributions - employer - 587,959 (587,959)
Benefit payments, including
refunds of member contributions (587,959) (587,959)
Net Changes (3,131,363) (3,131,363)
Balances at 09/30/2018 $ 8,020,884 $ - $ 8,020,884
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
123
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
The following table illustrates the impact of interest rate sensitivity on the GESE EBP net pension
liability as of September 30, 2019:
Current Discount
1 % Decrease Rate 1 % Increase
(2.57%) (3.57%) (4.57%)
Net Pension Liability $ 9,183,497 $ 8,020,884 $ 7,089,360
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pension
For the year ended September 30, 2019, the City recognized pension expense of$442,043. At Septembe
30, 2019 the City reported deferred outflows and inflow ofresources from the following source:
GESE EBP
Deferred Outflows of Deferred Inflows of
Resources Resources
Differences between expected and actual
experience $ 588,814 $ 3,365,271
Changes of assumptions 576,630 526,293
Employer contribution made subsequent to
measurement date 477,892
-
Total $ 1,643,336 $ 3,891,564
There is $477,892 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 September30:
2020 $ (127,029)
2021 (723,451)
2022 (905,932)
2023 (679,244)
2024 (290,464)
City of Miami General Employees and Sanitation Employees Retirement Trust (S taff 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.
124
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
As of October 1, 2018, the date of the most recent actuarial report valuation, membership in the Staff
Trust consisted ofthe following:
Members
Retirees and beneficiaries currently receiving benefits 7
Terminated members entitled to benefits but not yet receiving benefits 1
Current members 5
Total 13
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 agf
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 Pk(fROP)
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. Aparticipant may defer payment until the latest date authorized by Section 401(a) (9) ofthe
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, 2019 amounted to $966,934 thousand.
Contributions and Funding Polic
Members of the Staff Trust are required to contribute 10 percent of their salary on a bi-weekly basis.
The funding policies ofthe 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 o:
125
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
increase future contributions that would otherwise be required to provide for the defined level of benefits
under the StaffPlan.
The payroll for employees covered by the Staff Trust for the year ended September 30, 2019 was
approximately $280,000. 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, 2019, the
average active employee contribution rate was 11.6 percent of annual pay, and the City's average
contribution rate was 83.2 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, 2019, are as
follows:
GESE Staff Trust
Total pension liability $ 5,228,668
Plan fiduciary net position (4,262,009)
Net pension liability $ 956,659
Actuarial Assumptions
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 September 30, 2018
Inflation 3.50%
Projected salary increases 6%, including inflation
Investment rate of return 7.6% per year, net ofpension plan investment expense and includir
inflation.
126
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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 expecte(
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, 2019 are summarized in the following table:
Asset Class
U.S. Large Cap Equity
U.S. Small Cap Equity
International Equity
Cash and Other
Core Bonds
Discount Rate
Long -Term Expected
Real Rate of Return
8.40%
9.25%
8.75%
2.10%
5.00%
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.
127
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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, 2019:
Balance at 10/01/2017
Changes for the year:
Service Cost 69,391
Interest 369,771
Changes of benefit terms
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 208,876 381,473
Balances at 09/30/2018
GESE Staff Trust
Increase (Decrease)
Total Pension
Liability
(a)
$ 5,019,792
78,475
Plan Fiduciary
Net Position
(b)
$ 3,880,536
276,246
32,621
424,371
Net Pension
Liability
(a)-(b)
$ 1,139,256
69,391
369,771
78,475
(276,246)
(32,621)
(424,371)
172,597
$ 5,228,668 $ 4,262,009 $ 966,659
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 StaffTrust Plan net
pension liability as of September 30, 2019:
Current Discount
1% Decrease Rate 1% Increase
(6.6%) (7.6%) (8.6%)
Net Pension Liability $ 1,721,519 $ 966,659 $ 366,812
128
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pension
For the year ended September 30, 2019, the City recognized pension expense of ($104,177). At
September 30, 2019 the City reported deferred inflows and outflows of resources as follows:
GESE Staff Trust
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ 57,433 -
Changes of assumptions 29,958 Net difference between projected and actual earnings on
pension plan investments - 209,943
Employer contribution made subsequent to measurement date 273,659
Total $ 361,050 209,943
There is$273,659 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:
Yearended September30:
2020 $ 21,483
2021 (62,824)
2022 (54,995)
2023 (26,216)
GESE StafExcess 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, 2018, the date of the most recent actuarial report valuation, membership in the EBP
consisted of 1 active member.
129
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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 th
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, 2019, 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 participanfs
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 ancFunding Poligy
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.
130
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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 $366,358.
For the year ended September 30, 2019, 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 ofEORT at September 30, 2019, were as follows:
EORT
Totalpension liability
Plan fiduciary net position
Net pension liability
Actuarial Assumptions
$ 10,024,697
(7,546,162)
$ 2,478,535
The total pension liability in the January 1, 2019 actuarial valuation was determined using the following
assumptions, applied to all periods in the measurement
Actuarial Assumptions
Measurement Date January 1, 2019
Assumed rate ofreturn on 2.50% for the period Jan 1, 2019 and future periods
investments ofpension plan investment expense
Inflation Rate 2.25%
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, ne
ofpension plan investment expense and inflation) are developed for each major asset class. These rang(
are combined to produce the long-term expected rate ofreturn by weighting the expected future real rates
131
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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 o
September 30, 2019, are as follows:
Asset Class
U.S. Fixed Income
Discount Rate
Long -Term Expected
Real Rate of Return
0.40%
The discount rate used to measure the total pension liability was 2.50 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 ofprojected 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, 2019:
EORT
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
Balances at 10/O1/2018 $ 8,488,936 $ 7,375,239 $ 1,113,69 i
Changes for the year.
Service Cost
Interest 311,867 - 311,86
Differences between expected and
actual experience 52,687 - 52,687
Changes of assumptions 1,489,649 - 1,489,649
Contributions - employer - 366,358 (366,358;
Net investment income - 125,407 (125,407;
Benefit payments, including
refunds of member contributions (318,442) (318,442) -
Administrative expenses and Other - (2,400) 2,40C
Net Changes 1,535,761 170,923 1,364,8M
Balances at9/30/2019 $ 10,024,697 $ 7,546,162 $ 2,478,53`
132
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following table illustrates the impact ofinterest rate sensitivity on the EORT net pension liability as
of September 30, 2019:
Current Discount
1% Decrease Rate 1% Increase
(2.75%) (3.75%) (4.75%)
Net Pension Liability $ 3,998,249 $ 2,478,535 $ 1,256,667
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pension
For the year ended September 30, 2019, the City recognized pension expense of $1,774,079. At
September 30, 2019 the City reported deferred outflows of resources from the following sources:
Deferred Outflow
of Resources
Net difference between projected and actual earnings on
pension plan investments 363,771
Employer contribution made subsequent to measurement
date 366,358
Total $ 730,129
There is $366,358 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, 2020. Other amounts reported as deferred
outflows ofresources related to pensions will be recognized in pension expense as, follows:
Yearended September30:
2020 $152,012
2021 111,392
2022 71,436
2023 28,931
133
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
The following summarizes net pension liability, deferred inflow and outflow of resources at September
30, 2019, for each Pension Plan as previously discussed in Note 10:
Plan
FIPO
GESE Tmst
GESE Excess
GESE StaffTmst
EORT
Deferred Deferred
Net Pension Inflow of Outflow of
Liability Resources Resources
$ 668,447,546 $ 18,755,884 $ 120,438,536
287,711,182 27,451,189 112,190,050
8,020,884 3,891,564 1,643,336
966,659 209,943 361,050
2,478,535 - 730,129
Total $ 967,624,806 $ 50,308,580 $ 235,363,101
Pension
Expense
$ 148,988,982
34,736,150
442,043
(104,177)
1,774,079
$ 185,837,077
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 ofthe 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 ofthe City.
As of September 30, 2019, 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
$ 355,528,052
8,837,660
836,751
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 ofFlorida, 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
134
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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 receive(
from the State of Florida and remitted to the plans was $9.0 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. — POS T-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 tha
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 healtl
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 situate)
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 approximately3,708 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.
135
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
The FOP sponsors a HIT that is partially self -insured, which provides life, heath, and accidental death am
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 ti
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-g,
basis. The City contributed $11.3 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, 2019 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
2.66%
7% for FY2017, decreasing 0.5% per year to an ultimate rate of
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 4.24% at September
30, 2018 to 2.66% at September 30, 2019
Discount Rate
The discount rate used to measure the total OPEB liability was 2.66 percent.
In accordance with GASB Statement No. 75, the discount rate should be the single rate that reflects thf
following:
a.The long-term expected rate of return 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 investe
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 of2.66% was adopted as of the September 30, 2019 measurement date.
136
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
Changes in the Total OPEB Liability
Balances at9/30/2018
Changes for the year.
Service Cost
Interest
Changes of assumptions
Retired Police Officers
Increase (Decrease)
Total OPEB
liability
(a)
$ 404,773,061
15,532,134
17,584,487
166,632,926
Benefit payments, including refunds of member contributions (11,270,47
Net Changes
Balances at9/30/2019
Sensitivity of thd'otaiOPEBLiability to Changes in the Discount Rate
188,479,071
$593,252,132
The following table illustrates the impact of interest rate sensitivity on the total OPEB Liability for fiscal
year ending September 30, 2019:
Current Discount
1%Decrease Rate 1 %Increase
(1.66%) (2.66%) (3.66%)
Total OPEB Liability $ 750,423,556 $ 593,252,132 $ 478,818,030
The following table illustrates the impact of healthcare cost trend rate sensitivity on the total OPEB
Liability for fiscal year ending September 30, 2019:
1%Decrease
(5.50%
decreasing to
4.00%)
Health care cost
Trend Rates
(6.50%
Decreasing to
5.00%)
1% Increase
(7.50%
decreasing to
6.00%)
Total OPEB Liability $ 469,779,723 $ 593,252,132 $ 765,494,52
137
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows ofReRelto OPEB
For the fiscal year ended September 30, 2019, the City recognized OPEB expense of $49,575,930. A
September 30, 2019, the City reported deferred inflows of resources related to OPEB in the amount of
$38,193,052 for changes in assumptions and deferred outflows of resources related to OPEB in the
amount of $143,229,425 for changes in assumptions.
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEI
will be recognized in OPEB expense as follows:
Year ended September30:
2020
2021
2022
2023
2024
Thereafter
City of Miami Employe es Other Than Police — OPEB Plan
$16,459,309
16,459,309
16,459,309
16,459,309
16,459,309
$22,739,828
The City's Employees Other Than Police total OPEB liability of $196,309,972 was measured as of
September 30, 2019 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
2.66% per annum
The annual trends are based on the current HCA Consulting
study and are applied on a select and ultimate basis. Select
range from 6.5%-4.5% and are reduced 0.5% each year until reE
the ultimate trend rate of4.5%.
Mortality rates were based on the RP-2014 generational table scaled using MP-2018 and applied on
gender -specific basis
Discount Rate
The discount rate used to measure the total OPEB liability was 2.66 %, which is based on the Bond Buyei
20-Bond GO index.
138
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
Changes in the Total OPEB Liability
Balances at9/30/2018
Changes for the year.
Service Cost
Interest
Changes of as sumptions
Plan change
Benefit payments, including
refunds of member contributions
Net Changes
Balances at9/30/2019
Other Than Police
Increase (Decrease)
Total OPEB
liability
(a)
$ 192,193,454
12,089,305
8,428,692
62,941,852
(74,064,500)
(5,278,83)
4,116,518
$1%,309,972
Change of assumptions and other inputs reflect a change in the discount rate from 4.24% at September
30, 2018 to 2.66% at September 30, 2019. The discount rate is usually the only applicable change in the
simplified valuation. However, there was a recent plan change effective 1/1/2019, where members of the
Fire Fighter Union (IAFF) including their retirees left the City's health plan to participate in a newly
formed Health Trust; Local 587 Health Insurance Trust. Such a change is significant and must be
reflected in the current year results. The impact on the liability due to the plan change was a decrease of
$74M for fiscal year 2019.
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following table illustrates the impact ofinterest rate sensitivity on the total OPEB Liability for fiscal
year ending September 30, 2019
1%Decrease
(1.66%)
Current Discount
Rate 1 %Increase
(2.66%) (3.66%)
Total OPEB Liability $ 232,751,000 $ 196,309,972 $ 167,548,000
The following table illustrates the impact of healthcare cost trend rate sensitivity on the total OPEB
Liability for fiscal year ending September 30, 2019
139
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
1%Decrease
Health care cost
Trend Rates 1%Increase
TotalOPEB Liability $ 160,396,000 $ 196,309,972 $ 243,164,00(
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of ReRolattralto OPEB
For the fiscal year ended September 30, 2019, the City recognized a credit to OPEB expense of
($48,866,003). At September 30, 2019, the City reported deferred inflows of resources related to OPEB in
the amount of $16,128,543 for changes in assumptions and deferred outflows of resources related tc
OPEB in the amount of $55,963,852 for changes in assumption.
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEI
will be recognized in OPEB expense as follows:
Year ended September30:
2020
2021
2022
2023
2024
Thereafter
City of Miami Fire — OPEB Plan
$ 4,680,500
4,680,500
4,680,500
4,680,500
4,680,500
$ 16,432,809
The City's Fire total OPEB liability of $74,064,500 was measured as of September 30, 2019 and
determined by an actuarial valuation as of that date. There was a recent plan change effective 1/1/201c
where members of the Fire Fighter Union (IAFF) including their retirees left the City's health plan to
participate in a newly formed Health Trust; Local 587 Health Insurance Trust. Such a change is
significant and must be reflected in the current year results. The impact on the liability due to the plan
change was a decrease of$74Mfor fiscal year 2019.
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
2.66% per annum
The annual trends are based on the current HCA Consulting
study and are applied on a select and ultimate basis. Select
range from 6.5%-4.5% and are reduced 0.5% each year until reE
the ultimate trend rate of4.5%.
140
C1TY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
Mortality rates were based on the RP-2014 generational table scaled using MP-2018 and applied on
gender -specific basis
Discount Rate
The discount rate used to measure the total OPEB liability was 2.66 %, which is based on the Bond Buyei
20-Bond GO index.
Changes in the Total OPEB Liability
Fire
Increase (Decrease)
Total OPEB
Liability
(a)
Balances at9/30/2018 $ -
Changes for the year,
Service Cost -
Interest (1,295)
Changes of assumptions -
Plan change 74,127,736
Benefit payments, including
refunds of member contributions (61,941)
Net Changes 74,064,500
Balances at9/30/2019 $74,064,500
Sensitivity of the Net 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, 2019
Current Discount
1%Decrease Rate 1 %Increase
(1.66%) (2.66%) (3.66%)
Total OPEB Liability $ 87,814,000 $ 74,064,500 $ 63,213,000
The following table illustrates the impact ofhealthcare cost trend rate sensitivity on the total OPEB
Liability for fiscal year ending September 30, 2019
141
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
1%Decrease
Health care cost
Trend Rates 1%lncrease
Total OPEB Liability $ 60,515,000 $ 74,064,500 $ 91,742,00(
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows ofReRalarreto OPEB
For the fiscal year ended September 30, 2019, the City recognized OPEB expense of $74,126,441. A
September 30, 2019, the City reported no deferred inflows or outflows of resources related to the Fire
OPEB Plan.
NOTE 12. - COMMITMENTS AND CONTINGENCIES
The City participates in a number of federal and state assisted programs. These programs are subject
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
review and audit by the grantor agencies. Such audits could result in requests for reimbursement fo:
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 tl
City, County, and CRAB would move forward with the legal process of extending the lives and expanding
the geographic boundaries of both CRAB, and utilizing the additional tax increment revenues to finance
affordable housing, infrastructure, and redevelopment projects consistent with the CRAB' redevelopment
plans. The additional OMNI CRA tax increment revenues were available to finance 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. Th(
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
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 $35.7 million.
142
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
FOP, Miami Lodge No. 20 and Alfredo Vega v. City of Miami, et alThis 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 th,
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 relies
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 furtl
alleges that during the several bargaining sessions, the City never advised the Police Union that there WE
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
August 16, 2010, the City advised the Public Employees Relations Commission (`PERC') that it had
engaged in negotiations on the impact of the financial urgency, and any action necessitated by the
financial urgency, and that a dispute existed. The Police Union then alleges that on August 31, 2010, thf
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 unnotice
"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)11 (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. Or
March 2, 2017, the Florida Supreme Court issued a decision in favor ofFOP, quashing the decision ofthf
First District and remanding the case to the First District for proceedings consistent with State law. The
PERC entered an Order on the Merits of the Unfair Labor Practice Charge and scheduled a back -pa:
hearing in June 2018. Despite the pendency of the back -pay case, the FIPO Trust voted to disburs1
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, anc
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 financia
143
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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 partie
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 c�
and the parties agreed to close the record and attempt mediation. The parties have negotiated a settlem(
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 amount
due of $33.0 million as a long-term liability at fiscal year end.
International Association of Firefighters, Local587 v. City ofMiami,The IAF Local587 (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 thi
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 Sectioi
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 se
forth in Section 447.403 and/or Section 447.4095, Florida Statutes. The City received a recommender
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 outc In dfFy v. City ofMiami.The
PERC entered an Order on the Merits of the Unfair Labor Practice Charge and scheduled a backpa:
hearing in June 2018. The Firefighters Union backpay case before the PERC began on June 5, 2018. Tl
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 21' 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 tc
receive an exemption up to 100% of the municipal portion of their real or personal property ad valorem
taxes. The Florida Statutes which enabled this exemption gave the right to all applicants to be considere
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. Ifthe 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
Plaintiffs 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
144
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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 base,
upon consultation with legal counsel, that the outcome of these matters will not have an adverse materia
effect on the financial 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 ofabout $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. Bas
upon consultation with legal counsel, the City has reported a probable loss for this matter and accrued
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 thf
third party in the trial court, which management believes is substantially overstated.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other commitments for expenditui
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 thf
appropriate fund balance classifications ofrestricted, 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 ofthese
commitments at September 30, 2019.
Governmental Funds
Major Funds:
Other Capital Projects $ 52,994,759
Impact Fee 6,823,214
Non Major Governmental Funds 29,333,569
89,151,542
145
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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 sun
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)®ofthe 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 t
City and MSEA. The City will assume all obligations and liabilities ofMSEAupon 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 Serie
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 an.
related appurtenance and (ii)paythe costs of issuance ofthe Series 2018C Bonds.
On December 12, 2018, the City ofMiami 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 ofMiamiwilluse 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 Obligationsthis 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 beer
previously reported. This Statement also will enhance the decision -usefulness ofthe 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 ofthe criteria generally is on (1) whether
a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a
146
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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. 81,eases. The objective of this Statement is to better meet the information
needs of financial statement users by improving accounting and financial reporting for leases by
governments. This Statement increases the usefulness of governments' financial statements by requirin
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 provision
of the contract. It establishes a single model for lease accounting based on the foundational principle tha
leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required
recognize a lease liability and an intangible right -to -use lease asset, and a lessor is required to recognize
lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency
information about governments' leasing activities. The requirements of this Statement are effective for
reporting periods beginning after December 15, 2019.
GASB issued Statement No. $8the 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 direc
placements. This Statement defines debt for purpose of disclosure in notes to financial statements a
liabilities that arises from a contractual obligation to pay cash (or other assets that may be used in lieu o
cash) in one or more payments to settle an amount that is fixed at the date the contractual obligation i
established. The statement requires that additional information related to debt be disclosed in notes tc
financial statements, including lines of credit; assets pledged as collateral for the debt; and terms specifie
in debt agreements related to significand events of default with financial -related consequences, significan
termination events with financial -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 effectiv
for reporting period beginning after June 15, 2018.
GASB issued Statement No. 984e 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 ofthis 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.
147
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2019
Draft (1) 02-28-2020
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 hu
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 therefor
should not be included as Trust assets. Therefore, those assets were not available to pay pension bene
as they were already paid into the DROP accounts. As a result of the correction of an error to the DROI
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
$ 1,732,531,76_`
(181,181,304)
$ 1,551,350,46]
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.
148
Required Supplementary Information
Draft (1) 02-28-2020
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual - General Fund
For The Year Ended September 30, 2019
(Unaudited)
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Property Taxes $ 359,685,000 $ 359,685,000 $ 359,518,170 $ (166,830)
Franchise and Other Taxes 115,757,000 115,757,000 115,560,040 (196,960)
Licenses and Permits 67,037,000 67,037,000 75,421,804 8,384,804
Fines and Forfeitures 5,460,000 5,460,000 7,699,136 2,239,136
Intergovernmental Revenues 77,579,000 77,579,000 80,635,979 3,056,979
Charges for Services 118,272,000 118,272,000 122,174,203 3,902,203
Investment Earnings (Loss) 3,623,000 6,760,000 12,357,625 5,597,625
Other 10,133,000 44,236,000 10,723,544 (33,512,456)
Total Revenues 757,546,000 794,786,000 784,090,501 (10,695,499)
Expenditures:
General Government
Mayor 1,454,000 1,504,000 1,460,504 (43,496)
Commissioners 3,912,000 3,912,000 3,465,265 (446,735)
City Manager 2,850,000 2,867,000 2,668,082 (198,918)
Agenda Coordination 402,000 402,000 354,735 (47,265)
City Clerk 1,845,000 1,909,000 1,887,418 (21,582)
Neighborhood Enhancement Team 7,382,000 7,922,000 7,443,553 (478,447)
Civil Service Board 445,000 455,000 453,613 (1,387)
Independent Auditor General 1,368,000 1,368,000 1,173,023 (194,977)
Communications 2,149,000 2,228,000 2,071,912 (156,088)
Human Resources 4,736,000 4,876,000 4,697,427 (178,573)
Dept Human Services 4,381,000 4,538,000 4,506,975 (31,025)
Innovation and Technology Department 13,597,000 14,146,000 13,749,403 (396,597)
City Attomey 9,356,000 9,414,000 9,157,209 (256,791)
Management and Budget 2,499,000 2,560,000 2,467,568 (92,432)
Procurement 2,572,000 2,669,000 2,538,386 (130,614)
Equal Opportunity & Diversity Programs 464,000 491,000 464,520 (26,480)
Finance 9,296,000 9,513,000 9,431,097 (81,903)
Capital Improvements and Transportation 3,658,000 3,739,000 3,790,696 51,696
Grants Administration 1,712,000 1,777,000 1,760,052 (16,948)
Non -Departmental 67,816,000 71,323,000 49,191,873 (22,131,127)
Risk Management 2,952,000 3,056,000 3,046,422 (9,578)
Resiliency and Sustainability 723,000 723,000 633,544 (89,456)
Film and Entertainment - - 1,668 1,668
Total General Government 145,569,000 151,392,000 126,414,945 (24,977,055)
Planning and Development
Building
Planning
Zoning Department
Total Planning and Development
14,285,000
5,789,000
3,089,000
16,051,000
5,935,000
3,266,000
23,163,000 25,252,000
15,922,442
5,616,539
2,896,237
(128,558)
(318,461)
(369,763)
24,435,218 (816,782)
Public Works
Solid Waste 33,884,000 33,884,000 32,463,544 (1,420,456)
General Service Administration 25,258,000 26,220,000 26,313,717 93,717
Public Works and Sustainability 22,432,000 22,880,000 24,646,466 1,766,466
Total Public Works 81,574,000 82,984,000 83,423,727 439,727
Public Safety
Code Compliance 6,934,000 7,529,000 7,336,057 (192,943)
Fire - Rescue 143,167,000 162,775,000 162,948,455 173,455
Police 245,192,000 248,755,000 246,131,555 (2,623,445)
Total Public Safety 395,293,000 419,059,000 416,416,067 (2,642,933)
Real Estate and Asset Management
Community and Economic Development
Parks and Recreation
Total other Departmnets
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers In
Transfers Out
Proceeds from Sale of Property
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance - Beginning of Year
13,090,000 13,218,000 13,109,709 (108,291)
1,689,000 1,845,000 1,848,391 3,391
47,754,000 48,935,000 47,350,766 (1,584,234)
62,533,000 63,998,000 62,308,866 (1,689,134)
708,132,000 742,685,000 712,998,823 (29,686,177)
49,414,000 52,101,000 71,091,678 18,990,678
5,348,000 5,348,000 3,830,006 (1,517,994)
(54,870,000) (57,557,000) (63,061,000) (5,504,000)
108,000 108,000 195,133 87,133
(49,414,000) (52,101,000) (59,035,861) (6,934,861)
12,055,817 12,055,817
187,463,551 187,463,551
Fund Balance - End of Year $ - $ - $ 199,519,368 $ 199,519,368
149
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Notes to Required Supplementary Information
City of 1Vfiami, Florida
Year Ended September30, 2019
(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
the Capital Project Funds. The Capital Project Funds are budgeted on a total project basis for which annual budget;
not available. For governmental funds, budgets are prepared on a basis consistent with accounting principles gene
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 financi
statements:
• Prior to August 3f, the City Manager submits to the City Commission a proposed operating budget by fund.
except for the General Fund, which is at the depaitiuental level, for the fiscal year commencing 1 cTdi%er 1
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 betweseanBuly 1
September 3"0
• Such report is prepared after consultation with the City Manager.
• Public hearings are conducted to obtain taxpayer comments.
• Prior to October the budget is legally enacted through the passage ofa resolution and adoption of the budg
report. Management may not make changes to the adopted budget without the approval ofa majority vote of
Commis s ion.
• The Commission may transfer among departments any part of an unencumbered balance of an appropriation
purpose for which an appropriation for the current year has proved insufficient. At the close of each fiscal yel
the unencumbered balance of each appropriation reverts to the fund from which it was appropriated and is sub
to future appropriations.
• Budgets are monitored at varying levels of classification detail; however, budgetary control is legally maintains
at the fund level except for the General Fund, which is maintained at the depaitiuental level.
All budget amendments require City Commission approval. During fiscal yea8, supplemental appropriations
totaling 18.9 million in the General Fundcomprised ola decrease allocations of 3.4 million to General Fund
expenditurs by depaitiiieniandan increase c$12.3 million in Transfers-Ir The Special Revenue Funds budget was
also increased in fiscal year :8 by approximatel3$12.6 million, of which 12.4 million were allocated tcPlannin€,
$1.1 million to Police Service, $391,00( to City Clerk, $1.1 million to Community Developmer$98,90( to PErks
and Re., $692,000 to General Special Revenue, $1.7 million to Public Works, $1.8 million to Transportation am
Transit, $275,000to Fire Rescu, $3.3 million to Depaitinental Irtiative, and a reduction to the Tree Trust Fund
$217,001. During fiscal year 208, the General fund had expenditures of approxim $2.6 million attributable to
capital expenditures; these expenditures are budgeted at the del level and not repoid separately on ttGeneral
Fund Budget to ActulSchedule of Revenues, Expenditures and Changes in Fund 1 presentedn page146.
150
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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.
151
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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.
152
Draft (1) 02-28-2020
Required Supplementary Information
City of Miami, Florida
Schedule of Changes in the Net Pension Liability and Related Ratios
Firefighters and Police (FIPO)
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
Plan fiduciary net position - ending
City's net position liability
Covered payroll
Net pension liability as a percentage of covered
payroll
Update for
restatement 2018
$ 27,965,925
161,257,121
(122,641,436)
21,545,185
16,618,357
(194,663,548)
(89,918,396)
2,365,283,830
2,275,365,434
Update for
restatement 2017
S 26,279,333
160,085,065
122,641,436
16,422,875
(182,692,360)
142,736,349
2,222,547,481
2,365,283,830
2016 2015
2014
$ 21,625,163 $ 19,203,823 $ 17,233,272
156,265,650 156,479,438 155,338,970
9,453,429
12,725,721 (16,970,540)
30,651,781 14,895,466
(166,203,470) (165,535,327)
55,064,845 17,526,289
2,167,482,636 2,149,956,347
2,222,547,481 2,167,482,636
(6,638,755)
(139,860,276)
26,073,211
2,123,883,136
2,149,956,347
56,999,866 53,264,009 48,672,615 48,616,677 47,654,757
14,258,763 13,206,378 12,082,805 9,317,231 9,462,569
113,891,834 150,421,653 132,946,827 35,529,492 133,609,444
(194,663,548) (182,692,360) (166,203,470) (165,535,327) (139,860,276)
(2,086,709) (2,058,797) (2,029,168) (2,222,561) (2,086,240)
191,254 292,382 (42,726) 269,771 (42,726)
(11,408,540) 32,433,265 25,426,883 (74,024,717) 48,737,528
1,732,531,765 1,700,098,500 1,674,671,617 1,748,696,334 1,699,958,806
1,721,123,225 1,732,531,765 1,700,098,500 1,674,671,617 1,748,696,334
$ 554,242,209 $ 632,752,065 $ 522,448,981 $ 492,811,019 $ 401,260,013
$ 141,497,840 $ 133,083,231 $ 106,278,378 $ 93,705,765 $ 85,222,842
391.70% 475.46% 491.59% 525.91% 470.84%
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
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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
64,220,387
10,997,320
64,620,251
(73,580,735)
79,164,076
881,795,448
960,959,524
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.
$ 10,165,542
63,603,300
8,476,546
(421,932)
(73,827,066)
7,996,390
873,799,058
881,795,448
32,881,500
9,595,465
60,237,354
(73,827,066)
(233,337)
28,653,916
2015
$ 9,234,478 $ 8,678,294
64,212,607 64,248,602
(8,035,778)
(73,029,933) (73,771,095)
(7,618,626) (844,199)
881,417,684 882,261,883
873,799,058 881,417,684
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%
154
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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)
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
City's net position liability
Covered -employee payroll
Net pension liability as a percentage of covered -employee payroll
2018 2017 2016 2015
385,137
(1,948,114)
(92,094)
$ - $ - $
469,106 392,659 427,362
(516,393) 3,177,002 763,199
1,459,230 -
(674,572) (680,534)
(653,302) (556,805)
(2,329,643) 731,409 2,916,359 633,756
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
(674,572) (680,534)
$ 11,152,247 $ 13,481,890
$ 97,373,080 $ 81,069,095
11.45% 16.63%
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.
648,302 561,805
(653,302) (556,805)
5,000 (5,000)
$ 12,750,481 $ 9,834,122
$ 71,924,747 $ 66,370,246
17.73% 14.82%
155
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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)
2018 2017 2016
2015
Total pension liability
Service cost $ 52,832 $ 45,464 $ 43,416 $ 77,022
Interest 320,492 365,280 353,121 345,755
Changes of benefit terms 460,951 - - -
Differences between expected and actual experience 10,440 (686,043) 99,869
Changes of assumptions 105,798 - - -
Benefit payments, including refunds of member contributions (295,460) (332,554) (340,299) (311,388)
Net change in total pension liability 655,053 (607,853) 156,107 111,389
Total pension liability - beginning
Total pension liability - ending
4,364,739 4,972,592 4,816,485 4,705,096
5,019,792 4,364,739 4,972,592 4,816,485
Plan fiduciary net position
Contributions - employer 247,449 269,054 291,087 291,968
Contributions - member 24,542 19,316 19,838 23,377
Netinvestmentincome 438,774 364,079 (15,614) 338,281
Benefit payments, including refunds of member contributions
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending
(295,460) (332,554) (340,299) (311,388)
415,305 319,895 (44,988) 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
City's net position liability $ 1,139,256 $ 899,508 $ 1,827,256 $ 1,626,161
Covered -employee payroll
Net pension liability as a percentage of covered -employee payroll
$ 225,148 $ 172,459 $ 164,547 $ 298,958
506.00% 521.58% 1110.48% 543.94%
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.
156
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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 8,694,583 8,642,267 8,502,039 8,153,204 8,099,529
Total pension liability - ending 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 7,102,802 6,962,265 6,324,925 5,974,974 6,258,402
Plan fiduciary net position - ending $ 7,375,239 $ 7,102,802 $ 6,962,265 $ 6,324,925 $ 5,974,974
City's net position liability $ 1,113,697 $ 1,591,781 $ 1,680,002 $ 2,177,114 $ 2,178,230
Covered -employee payroll $ $ - $ 100,788 $ 103,194 $ 298,788
Net pension liability as a percentage of covered -
employee payroll 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.
157
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
$ 53,264,009
53,264,009
$ 148,949,683 $ 141,497,840
38.27%
37.64%
FY 2016
FY 2015
FY 2014
$ 48,672,615 $ 48,616,677 $ 47,305,679
48,672,615
48,616,677 47,305,679
$ 133,083,231 $ 106,278,378 $ 93,705,765
36.57%
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
FY 2013 FY 2012
$ 45,412,248
45,412,248
$ 85,222,842
53.29%
$ 47,418,316
47,418,316
$ 82,205,838
57.68%
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:
Asset valuation method:
Actuarial Assumptions:
Interest rates
Inflation
Projected salary increases
Expense and or Contingency Loading
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%
o o -8z-Zo (i-) 14aaa
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 - GESE
September 30, 2018
(Unaudited)
2018 FY 2017
$ 40,879,285
40,879,285
$ 34,355,719
34,355,719
$ 111,127,482 $ 97,373,080
36.79%
35.28%
FY 2016
$ 32,881,500
32,881,500
$ 81,069,095
40.56%
FY 2015
FY 2014
$ 33,036,318 $ 30,710,096
33,036,318 30,710,096
$ - $
$ 71,924,747 $ 66,370,246
45.93%
46.27%
Actuarially determined contribution
Contributions made in relation to the actuarially determined
contribution
Contribution deficiency (excess)
Covered -payroll
Contributions as a percentage of
covered -payroll
FY 2013 FY 2012
$ 25,568,193
$ 25,784,849
25,568,193 25,784,849
$ 64,391,195
39.71 %
$ 65,509,421
39.36%
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%
FY 2011
FY 2010
FY 2009
$ 20,420,995 $ 24,037,093 $ 23,191,828
20,420,995 $ 24,037,093 23,191,828
$ 70,825,712
28.83%
$ 92,746,558 $ 93,703,886
25.92%
24.75%
o o -8z-Zo (i-) 14aaa
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 - GESE Excess
September 30, 2018
(Unaudited)
2018 FY 2017
FY 2016
FY 2015
FY 2014
694,643 $ 850,429 $ 914,859 $ 947,666 $ 722,999
587,959
674,572
106,684 $
111,127,482 $
0.53%
175,857
97,373,080
0.69%
680,534
648,302
$ 234,325 $ 299,364
$ 81,069,095 $ 71,924,747
0.84% 0.90%
561,805
$ 161,194
$ 66,370,246
0.85%
Actuarially determined contribution
Contributions made in relation to the actuarially determined
contribution
Contribution deficiency (excess)
Covered -payroll
Contributions as a percentage of
covered -payroll
FY 2013
$
FY 2012
665,659 $
523,398
$ 142,261
$ 64,391,195
0.81%
FY 2011 FY 2010
FY 2009
606,589 $ 585,357 $ 625,539 $ 566,046
514,908
$ 91,681
$ 65,509,421
0.79%
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%
406,243 339,602
$ 179,114 $ 285,937
$ 70,825,712 $ 92,746,558
0.57% 0.37%
464,325
$ 101,721
$ 93,703,886
0.50%
o o -8z-Zo (i-) 14aaa
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
rn 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%
o o -8z-Zo (i-) 14aaa
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 - EORT
September 30, 2018
(Unaudited)
2018 FY 2017
$ 463,386
553,471
FY 2016
FY 2015
FY 2014
$ 406,911 $ 469,450 $ 390,314 $ 570,348
406,911
$ (90,085) $
N/A N/A
860,089
$ (390,639)
$ 100,788
853.36%
551,222
$ (160,908) $ 570,348
$ 103,194
534.16%
$ 298,788
0.00%
Actuarially determined contribution
Contributions made in relation to the actuarially determined
contribution
Contribution deficiency (excess)
Covered -payroll
Contributions as a percentage of
covered -payroll
Actuarial valuation reports prior to 2010 are not available.
FY 2013 FY 2012
$ 488,713
1,054,965
FY 2011
$ 566,252 $ 431,995
432,170
$ (566,252) $
$ 335,952
314.02%
962,677
134,082 $ (530,682)
$ 209,260 $ 209,260
206.52% 460.04%
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:
Equivalent single amortization period:
Asset valuation method:
Actuarial Assumptions:
Investment rate of return
Projected salary increases
Payroll Growth
Includes inflation at
Cost of living adjustments
January 1, 2018
Entry Age Normal
Level dollar, closed
5 to 9 years
8 years
Market Value
3.75%
None
None
2.50%
None
o o -8z-Zo (i-) 14aaa
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
Firelighters
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%
o o -8z-Zo (i-) 14aaa
Draft (1) 02-28-2020
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.
164
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NON -MAJOR
GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Economic Development & Planning Services
To account for the operations of the Economic Development and Planning Services.
NET Offices
To account for the operations of the City's Neighborhood Enhancement Teams (NET Offices).
Parks & Recreation Services
To account for the operations of the Parks and Recreation Services.
Police Services
To account for the proceeds of various grants from Local, State, and Federal Agencies that
are expended for police activities.
Law Enforcement Trust
To account for confiscated m onies a warded t o t he C ity f or I aw e nforcement 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
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.
165
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NON -MAJOR
GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
General Special Revenue
To account for activities that are designated as special revenue which do not fall into one of
the previous special revenue categories.
Departmental Improvement Initiatives
To account for the funds designated for the City of Miami initiatives related to quality of life
and technology.
Transportation and Transit
To account for the operations of the City's transit and transportation projects.
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.
166
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NON -MAJOR
GOVERNMENTAL FUNDS
DE'-"F 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.
167
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NON -MAJOR
GOVERNMENTAL FUNDS
10
1
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.
168
Draft (1) 02-28-2020
City of Miami, Florida
Combining Balance Sheet
Non -Major Governmental Funds
September 30, 2019
Homeless Community
Omni CRA Midtown CRA SEOPW CRA Program Development
Assets
Pooled Cash, Cash Equivalents, and Investments $ 8,151,523 $ 68,185 $ 27,297,433 $ 905,697 $ 15,887,349
Restricted Cash, Cash Equivalents, and Investments - - -
Receivables (Net of Allowance for Uncollectibles):
Loans Receivable - - 1,794
Accounts Receivable - 13,588 34,374
Property Tax - - -
Due From Other Governments - 366,536 272,163 1,128,328
Accrued Interest 38,732 67,118 4,610
Prepaids - - -
Other Assets - 500,508 -
Total Assets $ 8,190,255 $ 68,185 $ 28,245,183 $ 1,177,860 $ 17,056,455
Liabilities, Fund Balances and Deferred Inflows of
Resources
Liabilities:
Accounts Payable and Accrued Liaibilities 641,362 2,377,907 68,815 955,470
Other Liabilities - - 4,224
Due to Other Funds - - 770,758 -
Due to Other Governments - - 3,046,366
Deposits - 14,961 89,752
Total Liabilities 641,362 2,392,868 839,573 4,095,812
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 7,548,893 68,185 25,852,315 324,718 7,910,531
Committed - - 13,569 5,050,112
Assigned - -
Unassigned (deficit)
Total Fund Balances (Deficit) 7,548,893 68,185 25,852,315 338,287 12,960,643
Total Liabilities, Deferred Inflows of Resources and
Fund Balances $ 8,190,255 $ 68,185 $ 28,245,183 $ 1,177,860 $ 17,056,455
169
Draft (1) 02-28-2020
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, 2019
Special Revenue
Funds
Housing
Choice
Vouchers
SHIP
Economic
Development
Convention & Planning
Center Services NET Offices
$ 289,285 $ 1,669,290 $ 495,740 $ 17,661,419 $ 249,386
(26)
171
2,968
$ 289,259 $ 1,669,461
$ 495,740 $ 17,661,419 $ 252,354
Liabilities:
Accounts Payable and Accrued Liaibilities 5,036 50,139 11,044 277,409 9,228
Other Liabilities - - -
Due to Other Funds - - -
Due to Other Governments - - -
Deposits - - - 324
Total Liabilities 5,036 50,139 11,044 277,409 9,552
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 284,223
Committed -
Assigned -
Unassigned (deficit)
1,619,322
212,805
17,171,205
13,405
221,024
8,373
Total Fund Balances (Deficit) 284,223 1,619,322 484,696 17,384,010 242,802
Total Liabilities, Deferred Inflows of Resources and
Fund Balances $ 289,259 $ 1,669,461 $ 495,740 $ 17,661,419 $ 252,354
170
Draft (1) 02-28-2020
City of Miami, Florida
Combining Balance Sheet
Non -Major Governmental Funds
September 30, 2019
Special Revenue
Funds
Parks & Law
Recreation Enforcement Public Works City Clerk
Services Police Services Trust Services Services
Assets
Pooled Cash, Cash Equivalents, and Investments $ 2,965,471 $ 5,910,785 $ 794,748 $ 4,579,241 $ 1,420,123
Restricted Cash, Cash Equivalents, and Investments - - -
Receivables (Net of Allowance for Uncollectibles):
Loans Receivable - - -
Accounts Receivable 228 1,328,808 92,078 47
Property Tax - - -
Due From Other Governments 51,356 1,075,926 -
Accrued Interest 1 3,504 2,719 485
Prepaids - - -
Other Assets - - -
Total Assets $ 3,017,056 $ 8,319,023 $ 797,467 $ 4,671,804 $ 1,420,170
Liabilities, Fund Balances and Deferred Inflows of
Resources
Liabilities:
Accounts Payable and Accrued Liaibilities 14,656 804,041 20,102 849,540 2,222
Other Liabilities - - -
Due to Other Funds - 694,385 -
Due to Other Governments - - -
Deposits - - 112,413 -
Total Liabilities 14,656 1,498,426 132,515 849,540 2,222
Deferred Inflows of Resources
Unavailable Revenue - Other - 358,600
Total Deferred Inflows of Resources - 358,600
Fund Balances (Deficit):
Non -Spendable Fund Balance
Non Spendable
Spendable Fund Balance
Restricted 1,129,566 5,725,146 664,952 213,365
Committed 1,872,834 278,312 3,608,899 1,417,948
Assigned - 458,539 -
Unassigned (deficit)
Total Fund Balances (Deficit) 3,002,400 6,461,997 664,952 3,822,264 1,417,948
Total Liabilities, Deferred Inflows of Resources and
Fund Balances $ 3,017,056 $ 8,319,023 $ 797,467 $ 4,671,804 $ 1,420,170
171
Draft (1) 02-28-2020
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, 2019
Special Revenue
Funds
Miami
General Departmental Ballpark
Fire Rescue Special Improvement Transportation Parking
Services Revenues Initiatives & Transit Facilities
$ 978,100 $ 3,013,823 $ 12,273,526 $ 2,670,162 $ 5,145,174
3,857,952
98
21,897
150,628
159,991 56,934
4,697,128
16,669
2,202,325
$ 4,858,047 $ 3,173,814 $ 12,481,088 $ 7,383,959 $ 7,347,499
Liabilities:
Accounts Payable and Accrued Liaibilities 1,194,996 447,799 155,763 1,543,308 186,978
Other Liabilities - - -
Due to Other Funds 1,594,548 - -
Due to Other Governments - - -
Deposits - - -
Total Liabilities 2,789,544 447,799 155,763 1,543,308 186,978
Deferred Inflows of Resources
Unavailable Revenue - Other - - 2,800,000
Total Deferred Inflows of Resources - - 2,800,000
Fund Balances (Deficit):
Non -Spendable Fund Balance
Non Spendable 21,897
Spendable Fund Balance
Restricted 1,925,158 1,033,778 3,425,527
Committed 121,448 1,687,037 8,320,283
Assigned - 5,200
Unassigned (deficit) - - 579,515
3,040,651
7,160,521
Total Fund Balances (Deficit) 2,068,503 2,726,015 12,325,325 3,040,651 7,160,521
Total Liabilities, Deferred Inflows of Resources and
Fund Balances $ 4,858,047 $ 3,173,814 $ 12,481,088 $ 7,383,959 $ 7,347,499
172
Draft (1) 02-28-2020
City of Miami, Florida
Combining Balance Sheet
Non -Major Governmental Funds
September 30, 2019
Special Revenue
Funds
Liberty City Virginia Key Bayfront Park
Revitalization Beach Park Solid Waste Land Acquisition Total Special
Trust Trust RecyclingTrust Trust Fund Revenue
Assets
Pooled Cash, Cash Equivalents, and Investments $ 625,442 $ 1,183,848 $ 1,120,289 $ 1,539,000 $ 116,895,039
Restricted Cash, Cash Equivalents, and Investments - 35,212 - 35,212
Receivables (Net of Allowance for Uncollectibles):
Loans Receivable - - - 1,794
Accounts Receivable 15,000 - - 3,840,044
Property Tax - - - -
Due From Other Governments - 101,081 - 11,767,395
Accrued Interest 71 (56) 724 - 134,820
Prepaids - - - 21,897
Other Assets - - - 500,508
Total Assets $ 640,513 $ 1,320,085 $ 1,121,013 $ 1,539,000 $ 133,196,709
Liabilities, Fund Balances and Deferred Inflows of
Resources
Liabilities:
Accounts Payable and Accrued Liaibilities 2,797 65,002 1,395 - 9,685,009
Other Liabilities - - - 4,224
Due to Other Funds - - - 3,059,691
Due to Other Governments - - - 3,046,366
Deposits - - - 217,450
Total Liabilities 2,797 65,002 1,395 - 16,012,740
Deferred Inflows of Resources
Unavailable Revenue - Other
Total Deferred Inflows of Resources
Fund Balances (Deficit):
Non -Spendable Fund Balance
3,158,600
3,158,600
Non Spendable - - 1,089,411 - 1,111,308
Spendable Fund Balance
Restricted 637,716 - - 68,790,777
Committed - 1,255,083 30,206 1,539,000 42,586,960
Assigned - - - 472,112
Unassigned (deficit) - - - 579,515
Total Fund Balances (Deficit) 637,716 1,255,083 1,119,618 1,539,000 114,025,369
Total Liabilities, Deferred Inflows of Resources and
Fund Balances $ 640,513 $ 1,320,085 $ 1,121,013 $ 1,539,000 $ 133,196,709
173
Draft (1) 02-28-2020
City of Miami, Florida
Combining Balance Sheet
Non -Major Governmental Funds
September 30, 2019
Debt Service Capital Projects
Funds Funds
General CRA Other 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 9,646,314 2,555,642 12,201,956 20,703,007 25,082,229
Receivables (Net of Allowance for Uncollectibles):
Loans Receivable -
Accounts Receivable 3,275 - 3,275 - -
Property Tax 181,803 - 181,803 - -
Due From Other Governments
Accrued Interest - - - (22,726)
Prepaids - - - -
Other Assets - - - -
Total Assets $ 9,831,392 $ 2,555,642 $ 12,387,034 $ 20,703,007 $ 25,059,503
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)
181,803 - 181,803
181,803 - 181,803
1,710,792
1,710,792
9,649,590 2,555,642 12,205,232 20,703,008 23,348,710
Total Fund Balances (Deficit) 9,649,589 2,555,642 12,205,231 20,703,007 23,348,711
Total Liabilities, Deferred Inflows of Resources and
Fund Balances $ 9,831,392 $ 2,555,642 $ 12,387,034 $ 20,703,007 $ 25,059,503
174
Draft (1) 02-28-2020
City of Miami, Florida
Combining Balance Sheet
Non -Major Governmental Funds
September 30, 2019
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 $ - $ - $ - $ 116,895,039
Restricted Cash, Cash Equivalents, and Investments 9,413,279 761,143 55,959,658 68,196,826
Receivables (Net of Allowance for Uncollectibles):
Loans Receivable - - - 1,794
Accounts Receivable 750 - 750 3,844,069
Property Tax - - - 181,803
Due From Other Governments - - - 11,767,395
Accrued Interest (21,928) 15,013 (29,641) 105,179
Prepaids - - - 21,897
Other Assets - - - 500,508
Total Assets $ 9,392,101 $ 776,156 $ 55,930,767 $ 201,514,510
Liabilities, Fund Balances and Deferred Inflows of
Resources
Liabilities:
Accounts Payable and Accrued Liaibilities 1,079,165 1,053,230 3,843,187 13,528,196
Other Liabilities - - - 4,224
Due to Other Funds 16,701,052 - 16,701,052 19,760,743
Due to Other Governments - - - 3,046,366
Deposits - - - 217,450
Total Liabilities 17,780,217 1,053,230 20,544,239 36,556,979
Deferred Inflows of Resources
Unavailable Revenue - Other
Total Deferred Inflows of Resources
3,340,403
3,340,403
Fund Balances (Deficit):
Non -Spendable Fund Balance
Non Spendable - - - 1,111,308
Spendable Fund Balance
Restricted 8,488,856 1,546,915 54,087,489 135,083,498
Committed - - - 42,586,960
Assigned 484,696 - 484,696 956,808
Unassigned (deficit) (16,876,972) (1,823,989) (18,700,961) (18,121,446)
Total Fund Balances (Deficit) (8,388,116) (277,074) 35,386,528 161,617,128
Total Liabilities, Deferred Inflows of Resources and
Fund Balances $ 9,392,101 $ 776,156 $ 55,930,767 $ 201,514,510
175
Draft (1) 02-28-2020
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, 2019
Special Revenue
Funds
Homeless Community
Omni CRA Midtown CRA SEOPW CRA Program Development
Revenues
Property Taxes $ 19,241,912 $ 6,818,458 $ 18,900,762 $ - $
Licenses and Permits - - -
Fines and Forfeitures - - -
Intergovernmental Revenues 732,391 789,572 2,916,051 24,731,734
Charges for Services - - - 521,163
Investment Earnings (Loss) 263,909 727,817 - 60,379
Other 493,951 5,112,685 14,091
Total Revenues 20,732,163 6,818,458 25,530,836 2,930,142 25,313,276
Expenditures
Current Operating:
General Government - - 2,613,318 1,790
Planning and Development - - -
Community Development - - - 24,244,959
Community Redevelpment Areas 11,984,210 6,750,273 14,711,633 -
Public Works - - -
Public Safety - - -
Public Facilities - - -
Parks and Recreation - - -
Debt Service:
Principal - - -
Interest and Other Charges - - -
Capital Outlay 539,764 626,904 - 3,144,005
Total Expenditures 12,523,974 6,750,273 15,338,537 2,613,318 27,390,754
Excess (Deficiency) of Revenues
Over (Under) Expenditures 8,208,189 68,185 10,192,299 316,824 (2,077,478)
Other Financing Sources (Uses)
Transfers In - - 54,000 1,003,000
Transfers Out (6,976,158) - (8,378,631) -
Issuance of Debt - - - -
Total Other Financing Sources (Uses) (6,976,158) - (8,378,631) 54,000 1,003,000
Net Changes in Fund Balances 1,232,031 68,185 1,813,668 370,824 (1,074,478)
Fund Balances (Deficit) - Beginning 6,316,862 24,038,647 (32,537) 14,035,121
Fund Balances (Deficit) - Ending $ 7,548,893 $ 68,185 $ 25,852,315 $ 338,287 $ 12,960,643
176
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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, 2019
Special Revenue
Funds
Housing
Choice
Vouchers
SHIP
Economic
Development
Convention & Planning
Center Services NET Offices
Revenues
Property Taxes $ - $ - $ - $ - $
Licenses and Permits - - 508,422
Fines and Forfeitures - - - 3,000
Intergovernmental Revenues 2,502,801 380,166 557,982 -
Charges for Services - - 3,168,413 53,033
Investment Earnings (Loss) - 32,379 - 1,667 5,083
Other 44,726 347,670 - 948,866
Total Revenues 2,547,527 760,215 557,982 4,627,368 61,116
Expenditures
Current Operating:
General Government - - -
Planning and Development - - 1,731,657
Community Development 2,350,017 820,974 - -
Community Redevelpment Areas - - -
Public Works - - 104,277
Public Safety - - -
Public Facilities - 73,049 -
Parks and Recreation - - -
Debt Service:
Principal - - -
Interest and Other Charges - - -
Capital Outlay - - -
Total Expenditures 2,350,017 820,974 73,049 1,835,934
Excess (Deficiency) of Revenues
Over (Under) Expenditures 197,510 (60,759) 484,933 2,791,434 61,116
Other Financing Sources (Uses)
Transfers In
Transfers Out
Issuance of Debt
Total Other Financing Sources (Uses)
- (1,936,000) (1,556,000)
- (1,936,000) (1,556,000)
Net Changes in Fund Balances 197,510 (60,759) 484,933 855,434 (1,494,884)
Fund Balances (Deficit) - Beginning 86,713 1,680,081 (237) 16,528,576 1,737,686
Fund Balances (Deficit) - Ending $ 284,223 $ 1,619,322 $ 484,696 $ 17,384,010 $ 242,802
177
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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, 2019
Special Revenue
Funds
Parks & Law
Recreation Enforcement Public Works City Clerk
Services Police Services Trust Services Services
Revenues
Property Taxes $ - $ $ - $ - $
Licenses and Permits - - 4,079,915
Fines and Forfeitures - 146,483 -
Intergovernmental Revenues 456,588 5,898,753 - -
Charges for Services 2,034 205,461 - 1,127,028 219,293
Investment Earnings (Loss) - 94,974 41,118 -
Other - 132 - -
Total Revenues 458,622 6,199,320 187,601 5,206,943 219,293
Expenditures
Current Operating:
General Government - - - 85,120
Planning and Development - - -
Community Development - - -
Community Redevelpment Areas - - -
Public Works - - 4,009,222
Public Safety - 10,252,636 499,908
Public Facilities -
Parks and Recreation 481,585
Debt Service:
Principal - - -
Interest and Other Charges - - -
Capital Outlay 28,129 1,269,608 - 1,526,120 8,073
Total Expenditures 509,714 11,522,244 499,908 5,535,342 93,193
Excess (Deficiency) of Revenues
Over (Under) Expenditures (51,092) (5,322,924) (312,307) (328,399) 126,100
Other Financing Sources (Uses)
Transfers In 31,000 4,374,000 - 50,000 88,000
Transfers Out - - (7,418,500)
Issuance of Debt - - -
Total Other Financing Sources (Uses) 31,000 4,374,000 - (7,368,500) 88,000
Net Changes in Fund Balances (20,092) (948,924) (312,307) (7,696,899) 214,100
Fund Balances (Deficit) - Beginning 3,022,492 7,410,921 977,259 11,519,163 1,203,848
Fund Balances (Deficit) - Ending $ 3,002,400 $ 6,461,997 $ 664,952 $ 3,822,264 $ 1,417,948
178
Draft (1) 02-28-2020
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, 2019
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 - 1,434,824 -
Intergovernmental Revenues 5,912,644 278,215 949,559 18,819,703
Charges for Services 17,489 - 10,793 5,643,228
Investment Earnings (Loss) 1,534 84,860 19,513
Other 65,032 499,690 - - 100,000
Total Revenues 5,996,699 777,905 2,469,243 18,850,009 5,743,228
Expenditures
Current Operating:
General Government - 54,950 5,043,238 141,429
Planning and Development - 691,015 -
Community Development - - -
Community Redevelpment Areas - - -
Public Works - 644,423 19,172 11,984,339
Public Safety 6,433,584 - -
Public Facilities - - - 2,703,454
Parks and Recreation -
Debt Service:
Principal - - -
Interest and Other Charges - - -
Capital Outlay 762,586 848 46,575
Total Expenditures 7,196,170 700,221 5,800,000 12,125,768 2,703,454
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,199,471) 77,684 (3,330,757) 6,724,241 3,039,774
Other Financing Sources (Uses)
Transfers In 686,000 1,800,000 5,615,000 167,000
Transfers Out - (627,000) (7,567,000)
Issuance of Debt - - -
Total Other Financing Sources (Uses) 686,000 1,800,000 4,988,000 (7,400,000)
Net Changes in Fund Balances (513,471) 1,877,684 1,657,243 (675,759) 3,039,774
Fund Balances (Deficit) - Beginning 2,581,974 848,331 10,668,082 3,716,410 4,120,747
Fund Balances (Deficit) - Ending $ 2,068,503 $ 2,726,015 $ 12,325,325 $ 3,040,651 $ 7,160,521
179
Draft (1) 02-28-2020
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, 2019
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 $ - $ - $ - $ - $ 44,961,132
Licenses and Permits - - - 4,588,337
Fines and Forfeitures - - - 1,584,307
Intergovernmental Revenues 899,000 424,162 - - 66,249,321
Charges for Services - 1,520,360 - - 12,488,295
Investment Earnings (Loss) - 17,663 27,562 - 1,378,458
Other 32,030 376,838 - - 8,035,711
Total Revenues 931,030 2,339,023 27,562 - 139,285,561
Expenditures
Current Operating:
General Government - - - 7,939,845
Planning and Development - - - 2,422,672
Community Development - - - 27,415,950
Community Redevelpment Areas 526,913 - - 33,973,029
Public Works - 18,750 - 16,780,183
Public Safety - - - 17,186,128
Public Facilities - - - 2,776,503
Parks and Recreation - 1,126,027 - - 1,607,612
Debt Service:
Principal - - - -
Interest and Other Charges - - - -
Capital Outlay - 32,815 - - 7,985,427
Total Expenditures 526,913 1,158,842 18,750 - 118,087,349
Excess (Deficiency) of Revenues
Over (Under) Expenditures 404,117 1,180,181 8,812 - 21,198,212
Other Financing Sources (Uses)
Transfers In - - 119,000 13,987,000
Transfers Out - - - (34,459,289)
Issuance of Debt - - - -
Total Other Financing Sources (Uses) - - 119,000 (20,472,289)
Net Changes in Fund Balances 404,117 1,180,181 8,812 119,000 725,923
Fund Balances (Deficit) - Beginning 233,599 74,902 1,110,806 1,420,000 95,825,211
Fund Balances (Deficit) - Ending $ 637,716 $ 1,255,083 $ 1,119,618 $ 1,539,000 $ 114,025,369
180
Draft (1) 02-28-2020
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, 2019
Debt Service
Funds
Capital Projects
Funds
CRA Other
General Special Community
Obligation Obligation Total Debt Redevelopment Transportation
Bonds Bonds Service Agency & Transit
Revenues
Property Taxes $ 22,725,247 $ $ 22,725,247 $ $
Licenses and Permits - - -
Fines and Forfeitures - -
Intergovernmental Revenues - - -
Charges for Services - - -
Investment Earnings (Loss) - - 133,150 661,117
Other - - -
Total Revenues 22,725,247 22,725,247 133,150 661,117
Expenditures
Current Operating:
General Government 7,678 7,678 4,325
Planning and Development - - 4,899
Community Development - -
Community Redevelpment Areas - - 4,234,836 -
Public Works - - 228,943
Public Safety - - -
Public Facilities - - -
Parks and Recreation - - -
Debt Service:
Principal 19,070,000 4,265,000 23,335,000
Interest and Other Charges 3,423,817 2,977,783 6,401,600
Capital Outlay - - 9,837,025
Total Expenditures 22,501,495 7,242,783 29,744,278 4,234,836 10,075,192
Excess (Deficiency) of Revenues
Over (Under) Expenditures 223,752 (7,242,783) (7,019,031) (4,101,686) (9,414,075)
Other Financing Sources (Uses)
Transfers In
7,242,783 7,242,783 1,450,000
Transfers Out - - -
Issuance of Debt - - -
Total Other Financing Sources (Uses) - 7,242,783 7,242,783 1,450,000
Net Changes in Fund Balances 223,752 223,752 (4,101,686) (7,964,075)
Fund Balances (Deficit) - Beginning 9,425,837 2,555,642 11,981,479 24,804,693 31,312,786
Fund Balances (Deficit) - Ending $ 9,649,589 $ 2,555,642 $ 12,205,231 $ 20,703,007 $ 23,348,711
181
Draft (1) 02-28-2020
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, 2019
Capital Projects
Funds
Total Non -
Special General Major
Obligation Obligation Total Capital Governmental
Bonds Projects Bonds Projects Projects Funds
Revenues
Property Taxes $ - $ - $ - $ 67,686,379
Licenses and Permits - - - 4,588,337
Fines and Forfeitures - - - 1,584,307
Intergovernmental Revenues - - - 66,249,321
Charges for Services - - - 12,488,295
Investment Earnings (Loss) 130,832 26,204 951,303 2,329,761
Other - - - 8,035,711
Total Revenues 130,832 26,204 951,303 162,962,111
Expenditures
Current Operating:
General Government 10,304,591 1 10,308,917 18,256,440
Planning and Development - - 4,899 2,427,571
Community Development - - - 27,415,950
Community RedevelpmentAreas - - 4,234,836 38,207,865
Public Works - - 228,943 17,009,126
Public Safety - - - 17,186,128
Public Facilities - - - 2,776,503
Parks and Recreation 16,131 - 16,131 1,623,743
Debt Service:
Principal 8,093,886 - 8,093,886 31,428,886
Interest and Other Charges - - - 6,401,600
Capital Outlay 4,784,362 1,823,990 16,445,377 24,430,804
Total Expenditures 23,198,970 1,823,991 39,332,989 187,164,616
Excess (Deficiency) of Revenues
Over (Under) Expenditures (23,068,138) (1,797,787) (38,381,686) (24,202,505)
Other Financing Sources (Uses)
Transfers In
Transfers Out
Issuance of Debt
Total Other Financing Sources (Uses)
- - 1,450,000 22,679,783
- - - (34,459,289)
7,315,902 - 7,315,902 7,315,902
7,315,902
8,765,902 (4,463,604)
Net Changes in Fund Balances (15,752,236) (1,797,787) (29,615,784) (28,666,109)
Fund Balances (Deficit) - Beginning 7,364,120 1,520,713 65,002,312 172,809,002
Fund Balances (Deficit) - Ending $ (8,388,116) $ (277,074) $ 35,386,528 $ 161,617,128
182
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, 2019
Draft (1) 02-28-2020
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Property Taxes $ 19,242,000 $ 19,242,000 $ 19,241,912 $ (88)
Intergovernmental Revenues - 732,391 732,391
Investment Earnings (Loss) - 263,909 263,909
Other 24,666,000 24,666,000 493,951 (24,172,049)
Total Revenues 43,908,000 43,908,000 20,732,163 (23,175,837)
Community Redevelpment Areas 35,092,000 35,092,000 11,984,210 23,107,790
Capital Outlay 24,000 24,000 539,764 (515,764)
Total Expenditures 35,116,000 35,116,000 12,523,974 22,592,026
Excess (Deficiency) of Revenues Over (Under) Expenditures
8,792,000 8,792,000 8,208,189 (583,811)
Other Financing Sources (Uses):
Transfers Out (8,792,000) (8,792,000) (6,976,158) 1,815,842
Total Other Financing Sources (Uses) (8,792,000) (8,792,000) (6,976,158) 1,815,842
Net Change in Fund Balance
1,232,031 1,232,031
Fund Balance (deficit) - Beginning of Year - 6,316,862 6,316,862
Fund Balance (deficit) - End of Year $ $ - $ 7,548,893 $ 7,548,893
183
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, 2019
Draft (1) 02-28-2020
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Property Taxes $ 6,919,000 $ 6,919,000 $ 6,818,458 $ (100,542)
Total Revenues 6,919,000 6,919,000 6,818,458 (100,542)
Community Redevelpment Areas 6,751,000 6,751,000 6,750,273
Total Expenditures 6,751,000 6,751,000 6,750,273
Excess (Deficiency) of Revenues Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance (deficit) - Beginning of Year
727
727
168,000 168,000 68,185 (99,815)
(68,000)
(68,000)
(68,000) - 68,000
(68,000) - 68,000
100,000 100,000 68,185 (31,815)
Fund Balance (deficit) - End of Year $ 100,000 $ 100,000 $ 68,185 $ (31,815)
184
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, 2019
Draft (1) 02-28-2020
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Property Taxes $ 18,901,000 $ 18,901,000 $ 18,900,762 $ (238)
Intergovernmental Revenues - 789,572 789,572
Investment Earnings (Loss) - 727,817 727,817
Other 36,897,000 36,897,000 5,112,685 (31,784,315)
Total Revenues 55,798,000 55,798,000 25,530,836 (30,267,164)
Community Redevelpment Areas 43,040,000 43,040,000 14,711,633 28,328,367
Capital Outlay 602,000 602,000 626,904 (24,904)
Total Expenditures 43,642,000 43,642,000 15,338,537 28,303,463
Excess (Deficiency) of Revenues Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
12,156,000 12,156,000
(12,156,000) (12,156,000)
(12,156,000) (12,156,000)
10,192,299 (1,963,701)
(8,378,631) 3,777,369
(8,378,631) 3,777,369
1,813,668 1,813,668
Fund Balance (deficit) - Beginning of Year - 24,038,647 24,038,647
Fund Balance (deficit) - End of Year $ $ - $ 25,852,315 $ 25,852,315
185
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, 2019
Draft (1) 02-28-2020
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Intergovernmental Revenues $ 2,494,000 $ 2,414,000 $ 2,916,051 $ 502,051
Other 645,000 802,000 14,091 (787,909)
Total Revenues 3,139,000 3,216,000 2,930,142 (285,858)
General Government 3,193,000 3,270,000 2,613,318
Total Expenditures 3,193,000 3,270,000 2,613,318
Excess (Deficiency) of Revenues Over (Under) Expenditures (54,000) (54,000) 316,824
Other Financing Sources (Uses):
Transfers In
Total Other Financing Sources (Uses)
Net Change in Fund Balance
54,000
54,000
54,000 54,000
54,000 54,000
656,682
656,682
370,824
370,824 370,824
Fund Balance (deficit) - Beginning of Year - - (32,537) (32,537)
Fund Balance (deficit) - End of Year $ $ - $ 338,287 $ 338,287
186
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, 2019
Draft (1) 02-28-2020
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Intergovernmental Revenues $ 23,610,000 $ 23,086,130 $ 24,731,734 $ 1,645,604
Charges for Services - 521,163 521,163
Investment Earnings (Loss) - 60,379 60,379
Other 23,629,000 23,629,000 - (23,629,000)
Total Revenues 47,239,000 46,715,130 25,313,276 (21,401,854)
General Government
Community Development
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers In
Total Other Financing Sources (Uses)
48,242,000
48,242,000
- 1,790 (1,790)
47,718,130 24,244,959 23,473,171
- 3,144,005 (3,144,005)
47,718,130 27,390,754 20,327,376
(1,003,000) (1,003,000)
1,003,000
1,003,000
(2,077,478) (1,074,478)
1,003,000 1,003,000
1,003,000 1,003,000
Net Change in Fund Balance - (1,074,478) (1,074,478)
Fund Balance (deficit) - Beginning of Year - - 14,035,121 14,035,121
Fund Balance (deficit) - End of Year $ $ - $ 12,960,643 $ 12,960,643
187
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, 2019
Draft (1) 02-28-2020
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Intergovernmental Revenues $ 2,303,000 $ 2,826,870 $ 2,502,801 $ (324,069)
Other - 44,726 44,726
Total Revenues 2,303,000 2,826,870 2,547,527 (279,343)
Community Development 2,303,000 2,826,870 2,350,017 476,853
Total Expenditures 2,303,000 2,826,870 2,350,017 476,853
Excess (Deficiency) of Revenues Over (Under) Expenditures - 197,510 197,510
Net Change in Fund Balance - 197,510 197,510
Fund Balance (deficit) - Beginning of Year - 86,713 86,713
Fund Balance (deficit) - End of Year $ $ - $ 284,223 $ 284,223
188
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - SHIP
For The Fiscal Year Ended September 30, 2019
Draft (1) 02-28-2020
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Intergovernmental Revenues $ 1,300,000 $ 1,300,000 $ 380,166 $ (919,834)
Investment Earnings (Loss) - 32,379 32,379
Other - 347,670 347,670
Total Revenues 1,300,000 1,300,000 760,215 (539,785)
Community Development
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
Net Change in Fund Balance
1,300,000 1,300,000 820,974 479,026
1,300,000 1,300,000 820,974 479,026
(60,759) (60,759)
(60,759) (60,759)
Fund Balance (deficit) - Beginning of Year - 1,680,081 1,680,081
Fund Balance (deficit) - End of Year $ $ - $ 1,619,322 $ 1,619,322
189
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, 2019
Draft (1) 02-28-2020
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Intergovernmental Revenues $ $ - $ 557,982 $ 557,982
Total Revenues - - 557,982 557,982
Public Facilities
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
Net Change in Fund Balance
73,049 (73,049)
73,049 (73,049)
484,933 484,933
484,933 484,933
Fund Balance (deficit) - Beginning of Year - (237) (237)
Fund Balance (deficit) - End of Year $ $ - $ 484,696 $ 484,696
190
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, 2019
Draft (1) 02-28-2020
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Licenses and Permits $ 740,000 $ 740,000 $ 508,422 $ (231,578)
Charges for Services - 3,168,413 3,168,413
Investment Earnings (Loss) - 1,667 1,667
Other 15,631,000 16,372,000 948,866 (15,423,134)
Total Revenues 16,371,000 17,112,000 4,627,368 (12,484,632)
Planning and Development 16,146,000 15,976,000
Public Works Capital Outlay 225,000 225,000
Total Expenditures 16,371,000 16,201,000
Excess (Deficiency) of Revenues Over (Under) Expenditures 911,000
Other Financing Sources (Uses):
Transfers Out
Total Other Financing Sources (Uses)
(911,000)
(911,000)
1,731,657
104,277
14,244,343
(104,277)
225,000
1,835,934 14,365,066
2,791,434 1,880,434
(1,936,000) (1,025,000)
(1,936,000) (1,025,000)
Net Change in Fund Balance - - 855,434 855,434
Fund Balance (deficit) - Beginning of Year - 16,528,576 16,528,576
Fund Balance (deficit) - End of Year $ $ - $ 17,384,010 $ 17,384,010
191
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, 2019
Draft (1) 02-28-2020
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Fines and Forfeitures $ $ - $ 3,000 $ 3,000
Charges for Services - 53,033 53,033
Investment Earnings (Loss) - 5,083 5,083
Other 1,667,000 1,667,000 - (1,667,000)
Total Revenues 1,667,000 1,667,000 61,116 (1,605,884)
Public Safety 717,000 717,000 - 717,000
Total Expenditures 717,000 717,000 - 717,000
Excess (Deficiency) of Revenues Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers Out
Total Other Financing Sources (Uses)
950,000 950,000 61,116 (888,884)
(950,000)
(950,000)
(950,000) (1,556,000) (606,000)
(950,000) (1,556,000) (606,000)
Net Change in Fund Balance - (1,494,884) (1,494,884)
Fund Balance (deficit) - Beginning of Year - - 1,737,686 1,737,686
Fund Balance (deficit) - End of Year $ $ - $ 242,802 $ 242,802
192
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, 2019
Draft (1) 02-28-2020
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Licenses and Permits $ 55,000 $ 55,000 $ - $ (55,000)
Intergovernmental Revenues 480,000 510,000 456,588 (53,412)
Charges for Services - 2,034 2,034
Other 550,000 950,000 - (950,000)
Total Revenues 1,085,000 1,515,000 458,622 (1,056,378)
Parks and Recreation 1,116,000 1,546,000 481,585 1,064,415
Capital Outlay - 28,129 (28,129)
Total Expenditures 1,116,000 1,546,000 509,714 1,036,286
Excess (Deficiency) of Revenues Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers In
Total Other Financing Sources (Uses)
Net Change in Fund Balance
(31,000) (31,000)
31,000
31,000
(51,092) (20,092)
31,000 31,000
31,000 31,000
(20,092) (20,092)
Fund Balance (deficit) - Beginning of Year - 3,022,492 3,022,492
Fund Balance (deficit) - End of Year $ $ - $ 3,002,400 $ 3,002,400
193
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, 2019
Draft (1) 02-28-2020
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Fines and Forfeitures $ 50,000 $ 50,000 $ - $ (50,000)
Intergovernmental Revenues 6,045,000 8,411,000 5,898,753 (2,512,247)
Charges for Services 1,129,000 1,129,000 205,461 (923,539)
Investment Earnings (Loss) - 94,974 94,974
Other 3,493,000 7,493,000 132 (7,492,868)
Total Revenues 10,717,000 17,083,000 6,199,320 (10,883,680)
Public Safety 13,970,000 19,134,000 10,252,636 8,881,364
Capital Outlay 1,896,000 2,536,000 1,269,608 1,266,392
Total Expenditures 15,866,000 21,670,000 11,522,244 10,147,756
Excess (Deficiency) of Revenues Over (Under) Expenditures (5,149,000) (4,587,000) (5,322,924) (735,924)
Other Financing Sources (Uses):
Transfers In 5,149,000 4,587,000 4,374,000 (213,000)
Total Other Financing Sources (Uses) 5,149,000 4,587,000 4,374,000 (213,000)
Net Change in Fund Balance
(948,924) (948,924)
Fund Balance (deficit) - Beginning of Year - - 7,410,921 7,410,921
Fund Balance (deficit) - End of Year $ $ - $ 6,461,997 $ 6,461,997
194
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, 2019
Draft (1) 02-28-2020
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Fines and Forfeitures $ 400,000 $ 400,000 $ 146,483 $ (253,517)
Investment Earnings (Loss) - 41,118 41,118
Other 1,511,000 977,000 - (977,000)
Total Revenues 1,911,000 1,377,000 187,601 (1,189,399)
Public Safety 1,698,000 1,164,000 499,908 664,092
Capital Outlay 213,000 213,000 - 213,000
Total Expenditures 1,911,000 1,377,000 499,908 877,092
Excess (Deficiency) of Revenues Over (Under) Expenditures
Net Change in Fund Balance
(312,307) (312,307)
(312,307) (312,307)
Fund Balance (deficit) - Beginning of Year - - 977,259 977,259
Fund Balance (deficit) - End of Year $ $ - $ 664,952 $ 664,952
195
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, 2019
Draft (1) 02-28-2020
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Licenses and Permits $ 300,000 $ 600,000 $ 4,079,915 $ 3,479,915
Charges for Services 7,171,000 7,171,000 1,127,028 (6,043,972)
Other 8,991,000 11,519,000 - (11,519,000)
Total Revenues 16,462,000 19,290,000 5,206,943 (14,083,057)
Public Works 10,792,000 11,997,000 4,009,222 7,987,778
Capital Outlay - 1,526,120 (1,526,120)
Total Expenditures 10,792,000 11,997,000 5,535,342 6,461,658
Excess (Deficiency) of Revenues Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
5,670,000 7,293,000 (328,399) (7,621,399)
50,000
(5,720,000)
50,000
(7,343,000)
(5,670,000) (7,293,000)
50,000
(7,418,500)
(75,500)
(7,368,500) (75,500)
Net Change in Fund Balance - - (7,696,899) (7,696,899)
Fund Balance (deficit) - Beginning of Year - 11,519,163 11,519,163
Fund Balance (deficit) - End of Year $ $ - $ 3,822,264 $ 3,822,264
196
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, 2019
Draft (1) 02-28-2020
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Charges for Services $ 90,000 $ 90,000 $ 219,293 $ 129,293
Other 1,002,000 1,206,000 - (1,206,000)
Total Revenues 1,092,000 1,296,000 219,293 (1,076,707)
General Government 1,180,000 1,384,000 85,120 1,298,880
Capital Outlay - 8,073 (8,073)
Total Expenditures 1,180,000 1,384,000 93,193 1,290,807
Excess (Deficiency) of Revenues Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers In
Total Other Financing Sources (Uses)
Net Change in Fund Balance
(88,000) (88,000) 126,100 214,100
88,000
88,000
88,000 88,000
88,000 88,000
214,100 214,100
Fund Balance (deficit) - Beginning of Year - - 1,203,848 1,203,848
Fund Balance (deficit) - End of Year $ $ - $ 1,417,948 $ 1,417,948
197
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - Emergency Services
For The Fiscal Year Ended September 30, 2019
Draft (1) 02-28-2020
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Intergovernmental Revenues $ $ - $ 5,403,096 $ 5,403,096
Other 100,000 100,000 4,078,644 3,978,644
Total Revenues 100,000 100,000 9,481,740 9,381,740
General Government
Public Works
Public Safety
Parks and Recreation
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
100,000
- 85,518 (85,518)
- 77,030 (77,030)
100,000 4,409,999 (4,309,999)
- 221,911 (221,911)
2,725,720 (2,725,720)
100,000 100,000
7,520,178 (7,420,178)
1,961,562 1,961,562
Other Financing Sources (Uses):
Transfers In - 1,500,000 1,500,000
Transfers Out - (526,000) (526,000)
Total Other Financing Sources (Uses) - 974,000 974,000
Net Change in Fund Balance - - 2,935,562 2,935,562
Fund Balance (deficit) - Beginning of Year - (17,474,235) (17,474,235)
Fund Balance (deficit) - End of Year $ $ - $ (14,538,673) $ (14,538,673)
198
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, 2019
Draft (1) 02-28-2020
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Intergovernmental Revenues $ 6,555,000 $ 7,480,418 $ 5,912,644 $ (1,567,774)
Charges for Services - 17,489 17,489
Investment Earnings (Loss) - 1,534 1,534
Other 7,686,000 7,686,000 65,032 (7,620,968)
Total Revenues 14,241,000 15,166,418 5,996,699 (9,169,719)
Public Safety 11,006,000 11,006,000 6,433,584 4,572,416
Capital Outlay 3,921,000 4,846,418 762,586 4,083,832
Total Expenditures 14,927,000 15,852,418 7,196,170 8,656,248
Excess (Deficiency) of Revenues Over (Under) Expenditures (686,000) (686,000) (1,199,471) (513,471)
Other Financing Sources (Uses):
Transfers In
Total Other Financing Sources (Uses)
Net Change in Fund Balance
686,000
686,000
686,000 686,000
686,000 686,000
(513,471) (513,471)
Fund Balance (deficit) - Beginning of Year - - 2,581,974 2,581,974
Fund Balance (deficit) - End of Year $ $ - $ 2,068,503 $ 2,068,503
199
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, 2019
Draft (1) 02-28-2020
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Intergovernmental Revenues $ $ 600,000 $ 278,215 $ (321,785)
Other 518,000 524,000 499,690 (24,310)
Total Revenues 518,000 1,124,000 777,905 (346,095)
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
13,000
3,056,000
21,000 54,950 (33,950)
3,654,000 644,423 3,009,577
- 848 (848)
3,069,000 3,675,000 700,221 2,974,779
(2,551,000) (2,551,000)
2,551,000 2,551,000
2,551,000 2,551,000
77,684 2,628,684
1,800,000 (751,000)
1,800,000 (751,000)
1,877,684 1,877,684
Fund Balance (deficit) - Beginning of Year - - 848,331 848,331
Fund Balance (deficit) - End of Year $ $ - $ 2,726,015 $ 2,726,015
200
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, 2019
Draft (1) 02-28-2020
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Fines and Forfeitures $ 900,000 $ 900,000 $ 1,434,824 $ 534,824
Intergovernmental Revenues 173,000 362,000 949,559 587,559
Investment Earnings (Loss) - 84,860 84,860
Other 4,602,000 7,360,000 - (7,360,000)
Total Revenues 5,675,000 8,622,000 2,469,243 (6,152,757)
General Government 6,963,000 10,320,000 5,043,238 5,276,762
Planning and Development 2,757,000 2,757,000 691,015 2,065,985
Public Works 16,000 19,172 (3,172)
Public Facilities 627,000 - 627,000
Capital Outlay 2,000 2,000 46,575 (44,575)
Total Expenditures 9,722,000 13,722,000 5,800,000 7,922,000
Excess (Deficiency) of Revenues Over (Under) Expenditures
(4,047,000) (5,100,000) (3,330,757) 1,769,243
Other Financing Sources (Uses):
Transfers In 4,047,000 5,100,000 5,615,000 515,000
Transfers Out - (627,000) (627,000)
Total Other Financing Sources (Uses) 4,047,000 5,100,000 4,988,000 (112,000)
Net Change in Fund Balance - 1,657,243 1,657,243
Fund Balance (deficit) - Beginning of Year - - 10,668,082 10,668,082
Fund Balance (deficit) - End of Year $ $ - $ 12,325,325 $ 12,325,325
201
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, 2019
Draft (1) 02-28-2020
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Intergovernmental Revenues $ 16,963,000 $ 16,963,000 $ 18,819,703 $ 1,856,703
Charges for Services - 10,793 10,793
Investment Earnings (Loss) - 19,513 19,513
Other 370,000 3,716,000 - (3,716,000)
Total Revenues 17,333,000 20,679,000 18,850,009 (1,828,991)
General Government
Public Works
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
200,000 200,000 141,429 58,571
10,766,000 14,112,000 11,984,339 2,127,661
10,966,000 14,312,000 12,125,768 2,186,232
6,367,000 6,367,000 6,724,241 357,241
167,000 167,000
(6,367,000) (6,367,000) (7,567,000) (1,200,000)
(6,367,000) (6,367,000) (7,400,000) (1,033,000)
(675,759) (675,759)
Fund Balance (deficit) - Beginning of Year - - 3,716,410 3,716,410
Fund Balance (deficit) - End of Year $ $ $ 3,040,651 $ 3,040,651
202
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, 2019
Draft (1) 02-28-2020
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Charges for Services $ 5,279,000 $ 5,279,000 $ 5,643,228 $ 364,228
Other 50,000 50,000 100,000 50,000
Total Revenues 5,329,000 5,329,000 5,743,228 414,228
Public Facilities 5,329,000 5,329,000 2,703,454 2,625,546
Total Expenditures 5,329,000 5,329,000 2,703,454 2,625,546
Excess (Deficiency) of Revenues Over (Under) Expenditures
Net Change in Fund Balance
3,039,774 3,039,774
3,039,774 3,039,774
Fund Balance (deficit) - Beginning of Year - 4,120,747 4,120,747
Fund Balance (deficit) - End of Year $ $ - $ 7,160,521 $ 7,160,521
203
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, 2019
Draft (1) 02-28-2020
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Intergovernmental Revenues $ 199,000 $ 199,000 $ 899,000 $ 700,000
Other 233,121 233,121 32,030 (201,091)
Total Revenues 432,121 432,121 931,030 498,909
Community Redevelpment Areas 432,121 432,121 526,913 (94,792)
Total Expenditures 432,121 432,121 526,913 (94,792)
Excess (Deficiency) of Revenues Over (Under) Expenditures
Net Change in Fund Balance
404,117 404,117
404,117 404,117
Fund Balance (deficit) - Beginning of Year - 233,599 233,599
Fund Balance (deficit) - End of Year $ $ - $ 637,716 $ 637,716
204
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, 2019
Draft (1) 02-28-2020
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Intergovernmental Revenues $ 65,000 $ 65,000 $ 424,162 $ 359,162
Charges for Services 700,000 700,000 1,520,360 820,360
Investment Earnings (Loss) - 17,663 17,663
Other 78,000 78,000 376,838 298,838
Total Revenues 843,000 843,000 2,339,023 1,496,023
Parks and Recreation 1,131,000 1,131,000 1,126,027 4,973
Capital Outlay 12,000 12,000 32,815 (20,815)
Total Expenditures 1,143,000 1,143,000 1,158,842 (15,842)
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) 1,180,181 1,480,181
300,000
300,000
300,000 - (300,000)
300,000 - (300,000)
1,180,181 1,180,181
Fund Balance (deficit) - Beginning of Year - - 74,902 74,902
Fund Balance (deficit) - End of Year $ $ - $ 1,255,083 $ 1,255,083
205
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, 2019
Draft (1) 02-28-2020
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Investment Earnings (Loss) $ 17,000 $ 17,000 $ 27,562 $ 10,562
Other 141,000 111,000 - (111,000)
Total Revenues 158,000 128,000 27,562 (100,438)
Public Works 158,000 128,000 18,750 109,250
Total Expenditures 158,000 128,000 18,750 109,250
Excess (Deficiency) of Revenues Over (Under) Expenditures
Net Change in Fund Balance
8,812 8,812
8,812 8,812
Fund Balance (deficit) - Beginning of Year - 1,110,806 1,110,806
Fund Balance (deficit) - End of Year $ $ - $ 1,119,618 $ 1,119,618
206
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, 2019
Draft (1) 02-28-2020
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Property Taxes $ 22,483,000 $ 22,483,000 $ 22,725,247 $ 242,247
Other 37,000 37,000 - (37,000)
Total Revenues 22,520,000 22,520,000 22,725,247 205,247
General Government 25,000 25,000 7,678 17,322
Principal 19,070,000 19,070,000 19,070,000 -
Interest and Other Charges 3,425,000 3,425,000 3,423,817 1,183
Total Expenditures 22,520,000 22,520,000 22,501,495 18,505
Excess (Deficiency) of Revenues Over (Under) Expenditures
Net Change in Fund Balance
223,752 223,752
223,752 223,752
Fund Balance (deficit) - Beginning of Year - - 9,425,837 9,425,837
Fund Balance (deficit) - End of Year $ $ - $ 9,649,589 $ 9,649,589
207
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, 2019
Draft (1) 02-28-2020
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Intergovernmental Revenues $ 4,000,000 $ 4,000,000 $ 4,000,000 $ -
InvestmentEarnings(Loss) - 160,173 160,173
Other 8,850,000 8,850,000 - (8,850,000)
Total Revenues 12,850,000 12,850,000 4,160,173 (8,689,827)
General Government 6,500 4,748,500 1,367,927 3,380,573
Principal 33,203,600 139,271,600 140,727,687 (1,456,087)
Interest and Other Charges 18,092,900 18,106,900 18,165,665 (58,765)
Total Expenditures 51,303,000 162,127,000 160,261,279 1,865,721
Excess (Deficiency) of Revenues Over (Under) Expenditures (38,453,000)
(149,277,000) (156,101,106)
Other Financing Sources (Uses):
Transfers In 38,453,000 38,618,000 38,618,000
Issuance of Debt 110,659,000 105,640,167 (5,018,833)
Total Other Financing Sources (Uses) 38,453,000 149,277,000 144,258,167 (5,018,833)
(6,824,106)
Net Change in Fund Balance - (11,842,939) (11,842,939)
Fund Balance (deficit) - Beginning of Year - - 32,104,417 32,104,417
Fund Balance (deficit) - End of Year $ $ - $ 20,261,478 $ 20,261,478
208
Revenues:
Total Revenues
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, 2019
Draft (1) 02-28-2020
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Principal - 4,265,000 (4,265,000)
Interest and Other Charges - 2,977,783 (2,977,783)
Total Expenditures - - 7,242,783 (7,242,783)
Excess (Deficiency) of Revenues Over (Under) Expenditures
(7,242,783) (7,242,783)
Other Financing Sources (Uses):
Transfers In - 7,242,783 7,242,783
Total Other Financing Sources (Uses) - 7,242,783 7,242,783
Net Change in Fund Balance
Fund Balance (deficit) - Beginning of Year - - 2,555,642 2,555,642
Fund Balance (deficit) - End of Year $ $ - $ 2,555,642 $ 2,555,642
209
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.
C W 1 I U WSW rP►r1 W L Wit P1 N I i kLU (i
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.
210
Assets
Cash and Cash Equivalents
Accounts Receivable
Capital Assets, Net
Investments:
U.S. Government Obligations
Corporate Bonds
Corporate Stocks
Money Market Funds and Commercial Paper
International Equity
Real Estate
Private Equity
Total Investments
Securities Lending Collateral
Total Assets
Liabilities
Obligations Under Security Lending Transactions
Accounts Payable
Accrued Liability
Payable for Securities Purchased
Total Liabilities
Net Position
Restricted for Pension Benefits
City of Miami, Florida
Combining Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2019
Employee Retirement Funds
General and
Sanitation
Fire Fighters and Employees
Police (FIFO) (GESE)
$ 43,221,066
14,789,771
2,095,512
$ 336,653
3,739,687
1,380,094
General and
Sanitation
Employees
(GESE Excess
Plan)
$ 29,839
28,219
General and
Sanitation
Employees Staff Elected Officers
Plan (GESE Retirement Trust
Staff Plan) (EORT)
$ 69,846 $
5,000
60,106,349
5,456,434 58,058
74,846
45,567,280
349,544,963
494,970,660
260,649,422
189,748,114
174,027,722
1,514,508,161
114,568,536
1,689,183,046
114,568,536
3,814,775
9,591,173
127,974,484
109,033,726
91,567,941
507,320,337
24,162,655
732,084,659
737,541,093 58,058
875,923
2,800,615
58,058
3,676,538 58,058
1,137,601
3,200,193
4,337,794
4,412,640
6,029
6,029
3,497,060
3,886,629
Draft (1) 02-28-2020
Total Employee
Retirement
Funds
$ 43,657,404
18,562,677
3,475,606
65,695,687
158,098,066
442,250,505
1,005,491,190
28,049,284
260,649,422
189,748,114
174,027,722
7,383,689 2,258,314,303
114,568,536
7,383,689 2,438,578,526
114,568,536
940,010
3,814,775
12,391,788
131,715,109
$ 1,561,208,562 $ 733,864,555 $ - $ 4,406,611 $ 7,383,689 $ 2,306,863,417
211
City of Miami, Florida
Combining Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Fiscal Year Ended September 30, 2019
Additions
Contributions:
Employer
Plan Members
Total Contributions
Investment Earnings:
Net Increase in Fair Value of Investments
Interest
Dividends
Other
Total Investment Earnings
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
Deductions
Benefits/Payments
Refunds upon Resignation, Death, Other
Distribution to Retirees
Administrative and Other Expenses
Total Deductions
Change in Net Position
Net Position- Beginning of Year, As Restated (Note 15)
Net Position- End of Year
Employee Retirement Funds
General and
Sanitation
Fire Fighters and Employees
Police (FIPO) (GESE)
General and
Sanitation
Employees
(GESE Excess
Plan)
General and
Sanitation
Employees Staff
Plan (GESE
Staff Plan)
Draft (1) 02-28-2020
Elected Officers
Retirement Trust
(EORT)
Total
Employee
Retirement
Funds
$ 62,694,851
16,309,563
79,004,414
51,103,043
17,435,630
10,494,862
604,633
79,63 8,16 8
$ 40,879,285
10,847,473
51,726,758
$ 477,892
477,892
$ 273,659 $ 366,358
40,846 -
314,505 366,358
83,149 135,031
93,516
176,665
135,031
505,494
(126,273)
379,221
60,276,827 103,477
60,276,827 103,477
(5,549,431)
74,467,958
60,276,827 103,477
(10)
176,655
135,031
153, 472,3 72 112,003,585
581,369
491,160
501,389
130,508,175 72,722,490
667,508 2,318,219
25,622,525
2,147,978 287,451
158,946,186 75,328,160
(5,473,814) 36,675,425
1,566,682,376 667,854,473
$ 1,561,208,562 $ 704,529,898
$ 104,692,045
27,197, 882
131,889,927
51,321,223
17,435,630
10,588,378
604,633
79,949, 864
60,885,798
(126,273)
60,759,525
(5,549,441)
13 5,159,948
267,049, 875
477,892 346,559 318,442 204,373,558
- 2,985,727
- 25,622,525
103,477 2,400 2,541,306
581,369 346,559 320,842 235,523,116
144,601 180,547 31,526,759
4,262,009 7,203,142 2,246,002,000
$ 4,406,610 $ 7,383,689 $ 2,277,528,759
212
Draft (1) 02-28-2020
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.
FNANCIAL TRENDS
These schedules contain trend information to help the reader understand how the City's
financial performance and well-being have changed over time.
RILV EINI UL CAPACITY
These schedules contain information to help the reader assess the City's most significant
local revenue source, the property tax.
!rPor r ®ACnrV
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.
ILIQM 11 i'4,0 ,, C'.CIWNWUW9144,. INFORM W W�IY
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.
213
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 S 578,092,580 S 627,800,618 S 616,752,804 S 614,080,419 S 651,485,412 S 626,017,000 S 657,452,000 S 693,247,000 S 752,507,000 S 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 (Deficit) (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 S (601,443,552) S (505,726,701) S (334,478,985) S (311,487,886) S (209,834,874) S 392,280,000 S 415,754,000 S 447,843,000 S 534,780,000 S 625,629,000
Notes:
(1) The City does not have any business -type activities for financial reporting purpose,.
o o -8z-Zo (i-) 14aaa
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 S 162,800,242 S 174,982,174 S 145,455,559 S 167,055,389 S 240,815,051 S 144,400,178 S 104,495,000 S 164,006,000 S 152,727,000 S 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 Port 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
Governmental 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
CommunityRedevelpmentAreas 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
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 73,139,000 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 Govemment 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 Government 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 Earnings(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 Government 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)
o o -8z-Zo (i-) 14aaa
Notes: (1) The City does not have any business -type activities for financial reporting purposes.
Draft (1) 02-28-2020
Fiscal
Year
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
CITY OF MIAML, FLORIDA
GENERAL GOVERNMENTAL TAX REVENUES BY S OURCE
LAST TEN FIS CAL YEARS
(ACCRUAL BAS IS 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
Franchise Taxes
$ 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
Sales and
Other Use Communication
Taxes Service 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
Total
$ 35,786,997 $ 64,250,989 $ 547,027,773
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
62,532,940 508,701,790
60,020,384 464,517,666
59,576,109 432,542,482
60,395,502 402,773,232
59,322,198 390,266,921
58,045,986 352,762,836
59,426,883 391,620,797
61,966,455 414,963,871
64,010,537 434,294,631
216
CITY OF MIAMI,FLORIDA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST EIGHT FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
2019 2018 2017 2016 2015 2014 2013
2012
Fund Balances (Deficit):
Non -Spendable Fund Balance
Non Spendable $ 8,907,290 $ 3,181,065 $ 3,123,531 $ 3,033,309 $ 3,474,396 $ 3,975,000 $ 3,554,000 $ 8,141,000
Spendable Fund Balance
Restricted 644,941,325 401,731,979 338,319,610 310,576,099 297,118,841 226,564,000 261,858,000 333,199,000
Committed 154,012,409 107,646,577 121,083,524 133,813,871 92,342,101 110,418,000 20,881,000 16,512,000
Assigned 75,833,008 62,505,392 44,647,057 44,240,127 61,350,740 56,487,000 73,642,000 52,161,000
Unassigned (deficit) 86,959,037 46,904,276 59,618,612 36,487,814 58,533,534 54,180,000 (3,399,000) (9,324,000)
Total Fund Balances (Deficit) $ 970,653,069 $ 621,969,289 $ 566,792,334 $ 528,151,220 $ 512,819,612 $ 451,624,000 $ 356,536,000 $ 400,689,000
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.
o o -8z-Zo (i-) 14aaa
Draft (1) 02-28-2020
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
2019 2018 2017 2016 2015
$ 427,204,549 $ 397,247,874 $ 363,439,702 $ 324,381,187 $ 294,152,040
115,560,040 113,992,902 111,740,819 107,436,744 107,136,243
80,010,141 73,756,786 73,030,964 71,826,609 65,136,838
9,293,224 15,63 8,528 17,727,789 17,022,156 13,606, 546
159,104,403 156,349,299 131,983,836 144,464,881 144,172,756
134,956,287 133,732,658 131,422,481 128,520,198 127,031,324
17,068,757 9,681,342 4,544,604 3,500,158 4,761,254
17,360,958 20,861,463 25,347,222 25,491,632 20,848,627
22,859,337 30,612,771 15,694,374 14,979,722 15,858,407
983,417,696 951,873,623 874,931,791 837,623,287 792,704,035
148,645,918 117,223,208 113,687,204 94,863,916 95,097,965
28,842,970 22,526,541 18,478,112 16,530,501 17,528,545
29,278,850 28,331,999 29,059,382 27,669,432 30,618,655
38,207,865 33,972,903 33,155,840 35,240,353 57,374,849
103,610,767 113,249,970 93,603,216 88,781,332 72,332,848
437,966,874 398,331,195 377,635,776 358,151,070 320,578,664
16,271, 550 18,098,100 16,095,228 14,172,514 14,182,077
49,672,482 53,971,624 50,122,922 40,252,541 34,176,174
172,156,573
24,567,265
75,065,968
1,124,287,082
53,599,962
35,299,145
80,821,666
955,426,313
42,848,297
33,376,755
80,312,188
888,374,920
31,666,421 23,134,356
37,407,853 43,562,774
88,247,094 87,743,237
832,983,027 796,330,144
(140,869,386) (3,552,690) (13,443,129) 4,640,260 (3,626,109)
98,046,289
(98,046,289)
195,133
113,833,542
114,028,675
$ (26,840,711) $
118,757,528
(118,757,527)
277,969
83,045,000
(74,105,000)
115,984,813
(115,984,813)
787,221
114,380,000
(112,330,000)
49,511,675 49,314,922
58,729,645
55,176,955 $
(67,900)
52,084,243
38,641,114 $
134,391,945
(134,391,945)
441,720
57,240,000
(57,635,000)
10,644,628
10,691,348
15,331,608 $
113,353,457
(113,353,457)
1,957,890
1,957,890
(1,668,219)
Debt Service as a Percentage
of Non -Capital Expenditures 18.75% 10.16%
9.43% 9.28% 9.41%
218
Draft (1) 02-28-2020
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
2014
2013 2012
2011
2010
$ 266,575,890 $ 258,507,816 $ 250,273,000 $ 261,325,000 $ 287,211,000
106,706,981 104,021,141 102,696,000 104,309,000 105,090,000
60,905,490 35,894,264 35,726,000 34,031,000 25,348,000
12,633,258 11,822,487 5,538,000 6,454,000 5,208,000
147,318,713 169,377,430 152,387,000 170,755,000 153,416,000
109,858,728 123,088,110 106,717,000 94,711,000 88,420,000
4,298,129 (2,653,269) 2,826,000 2,393,000 3,218,000
21,561,620 9,121,554 4,338,000 1,355,000 12,000
11,227,804 7,446,994 14,934,000 10,102,000 9,106,000
741,086,613 716,626,527 675,435,000 685,435,000 677,029,000
93,266,684
13,886,927
32,773,187
16,496,169
64,762,823
309,032,876
11,558,522
30,933,658
47,423,659
42,414,727
65,700,078
728,249,310
94,333,429
11,938,108
38,461,763
20,408,076
63,269,335
311,799,509
12,422,038
32,461,502
187,595,000 166,671,000 180,608,000
7,922,000 8,328,000 9,340,000
36,706,000 40,432,000 39,158,000
22,041,000 4,395,000 29,084,000
48,949,000 46,644,000 51,337,000
221,066,000 218,698,000 249,749,000
12,708,000 9,803,000 12,556,000
25,879,000 26,540,000 27,545,000
50,000,000
30,524,000 32,219,000
73,066,874 22,934,000 29,492,000 27,261,000
44,111,501 41,185,000 39,648,000 38,065,000
- 2,048,000
52,579,857 66,897,000 113,888,000 55,696,000
754,851,992 693,882,000 787,111,000 752,618,000
12,837,303 (38,225,465) (18,447,000) (101,676,000) (75,589,000)
130,317,671
(130,317,670)
10,607,538
4,330,862
73,934,380
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
88,872,781 50,332,986 - 54,872,000 164,978,000
$ 101,710,084 $ 12,107,521 $ (18,447,000) $ (46,804,000) $ 89,389,000
Debt Service as a Percentage
of Non -Capital Expenditures 13.56%
16.69% 10.23% 10.27% 9.37%
219
Draft (1) 02-28-2020
CITY OF MIAMI, FLORIDA
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Ad Valorem Ad Valorem Sales Communication
Fiscal Taxes Taxes Franchise and Other Service
Year General Purpose Debt Service Taxes Use Taxes Taxes Total
2019 $ 404,479,302 $ 22,725,247 $ 51,399,079 $ 37,022,921 $ 64,160,961 $ 579,787,510
2018 369,230,063 28,017,811 49,741,913 35,786,997 64,250,989 547,027,773
2017 336,475,508 26,964,194 49,207,879 33,521,269 62,532,940 508,701,790
2016 298,719,456 25,661,731 47,416,360 32,699,735 60,020,384 464,517,666
2015 269,303,313 24,848,727 47,560,134 31,254,199 59,576,109 432,542,482
2014 241,722,642 24,853,248 46,311,659 29,490,981 60,395,322 402,773,852
2013 232,082,786 26,425,030 44,698,943 27,737,964 59,322,198 390,266,921
2012 223,386,000 26,887,000 44,650,000 25,803,000 58,046,000 378,772,000
2011 233,193,000 28,132,000 44,882,000 25,988,000 59,427,000 391,622,000
2010 264,548,000 22,663,000 43,122,000 22,666,000 61,968,000 414,967,000
220
CITY OF MIAMI, FLORIDA
NET ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Net Assessed
Real Property Value as
Fiscal Year Net Total Estimated a Percentage of
Ended Residential Commercial Personal Assessed Direct Actual Estimated Actual
September 30, Property Property Property Value Tax Rate Value Value (1)
2019 $ 36,145,085,669 $ 20,300,307,800 $ 2,516,205,948 $ 58,961,599,417 8.0300 $ 76,358,400,388 77.22%
2018 32,694,764,561 18,370,692,628 2,291,647,844 53,357,105,033 8.0300 71,868,917,720 74.24%
2017 30,510,541,198 16,942,681,891 2,168,086,910 49,621,309,999 8.2900 66,582,430,165 74.53%
2016 27,319,085,749 15,141,552,949 2,141,666,844 44,602,305,542 8.3351 60,628,790,417 73.57%
2015 24,605,804,321 13,199,485,300 2,097,769,007 39,903,058,628 8.3850 54,280,943,197 73.51%
2014 21,934,172,831 11,333,504,297 2,017,164,410 35,284,841,538 8.4310 44,910,824,446 78.57%
2013 20,102,680,659 10,558,773,418 2,074,115,500 32,735,569,577 8.4710 39,674,594,000 82.51%
2012 19,106,566,634 10,336,397,326 1,890,870,077 31,333,834,037 8.5010 43,557,261,093 71.94%
2011 18,536,983,090 10,078,997,005 1,736,766,113 30,352,746,208 8.6441 42,365,151,484 71.65%
N 2010 23,341,894,079 11,921,087,043 1,686,540,244 36,949,521,366 8.3335 52,146,883,603 70.86%
Source: Miami -Dade Country Property Appraiser's Office.
Note: Property in the City is reassessed each year. State law requires the Property Appraiser to appraise property at 100% of market value.
The Florida Constitution was amended, effective January 1, 1995, to limit annual increases in assessed value of property with homestead
exemption to 3 percent per year or the amount of the Consumer Price Index, whichever is lower. The increase is not automatic since no
assessed value shall exceed market value. Tax rates are per $1,000 of assessed value.
(1) Includes tax-exempt property.
o o -8z-Zo (i-) 14aaa
Fiscal
Year
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
Tax Roll
Year
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
CITY OF MIAMI, FLORIDA
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
City of Miami, Florida
General
Operations
7.58650
7.58650
7.64650
7.64650
7.64650
7.61480
7.57100
7.57100
7.67400
7.67400
Debt
Service
0.4435
0.4435
0.6435
0.6886
0.7385
0.8162
0.9000
0.9300
0.9701
0.6595
Total
City
8.0300
8.0300
8.2900
8.3351
8.3850
8.4310
8.4710
8.5010
8.6441
8.3335
Overlapping Rates (1)
Miami -Dade
County School Miami -Dade
Board County
6.7330 5.1313
6.9940 5.0669
7.3220 5.0669
7.6120 5.1169
7.9740 5.1169
7.9770 5.1255
7.9980 4.9885
8.0050 5.0900
8.2490 5.8725
7.9950 5.1229
Miami -Dade Miami -Dade
Children's County Library
Trust System
0.4415 0.2840
0.4673 0.2840
0.5000 0.2840
0.5000 0.2840
0.5000 0.2840
0.5000 0.1725
0.5000 0.1725
0.5000 0.1795
0.5000 0.2840
0.5000 0.3822
NSources: City of Miami, Florida Finance Department and Miami -Dade County Property Appraiser's Office.
South Florida
Water
Management
District
0.2519
0.2659
0.2836
0.3045
0.3294
0.3523
0.3676
0.3739
0.5346
0.5346
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).
Total
Florida Inland Direct and
Environmental Navigation Overlapping
Projects District Rates
0.0417 0.0320 20.94540
0.0441 0.0320 21.18420
0.0471 0.0320 21.82560
0.0506 0.0320 22.23510
0.0548 0.0345 22.67860
0.0587 0.0345 22.65150
0.0613 0.0345 22.59340
0.0624 0.0345 22.74630
0.0894 0.0345 24.20810
0.0894 0.0345 22.99210
Draft (1) 02-28-2020
CITY OF MIAMI, FLORIDA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
2019
Percent of
Total
Net City Net
Assessed Assessed
Taxpayer Value Rank Value Rank
Florida Power and Light 635,217,126 1 1.08% 1
Ponte Gadea Biscayne LLC 394,801,519 2 0.67% N/A
Swire Properties 319,974,778 4 0.54% N/A
Oak Plaza Associates (DEL) LLC 338,975,857 3 0.57% N/A
CP Miami Center LLC 210,082,224 6 0.36% N/A
T C 701 Brickell LLC 214,434,000 5 0.36% 5
MCPP WFC Maami LLC 188,659,729 7 0.32% N/A
1450 Brickell LLC 182,555,875 9 0.31% N/A
Brickell Holding LLC 181,582,292 10 0.31% N/A
Resorts World Miami LLC 184,210,500 8 0.31% N/A
200 S Biscayne TIC 1 LLC N/A N/A 2
Bellsouth Telecommunications N/A N/A 4
Crescent Miami Center N/A N/A 3
1111 Brickell Office LLC N/A N/A 6
Trustees of L and B N/A N/A 7
Blue Capital US East N/A N/A 10
Estoril Incorporated N/A N/A 9
Opera Tower LLC N/A N/A 8
Total $ 2,850,493,900 4.83% $
Net Assessed Value- Citywide $ 58,961,599,417 $
Source: Miami -Dade Property Appraiser
223
Draft (1) 02-28-2020
Fiscal Year
Ended
September 30,
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
Total Taxes
Levied for
Fiscal Year
$ 449,788,561
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
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
$ 408,965,659 90.92% $ 18,238,870
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
Total Collections
To Date
Amount
$ 427,204,529
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
Percent
of Levy
94.98%
97.60%
93.00%
91.85%
93.10%
94.85%
98.42%
99.25%
101.28%
89.92%
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%.
224
CITY OF MIAMI, FLORIDA Draft (1) 02-28-2020
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities
Special
Fiscal Year General Obligation and Premium Percent of
Ended Obligation Revenue Loans Capital (Discounts) Personal Per
September 30, Bonds Bonds Payable Leases Accretions Total Income (1) Capita (1)
2019 $ - $ - $ - $ - $ 9,128,227 $ 9,128,227 0.00% 19
2018 154,385,000 461,893,102 12,867,726 36,567,264 4,869,802 670,582,894 0.00% 1,393
2017 174,640,000 455,546,327 - 30,675,053 6,436,510 667,297,890 3.25% 1,426
2016 189,735,000 451,965,127 - 10,644,628 8,547,344 660,892,099 3.14% 1,449
2015 205,038,304 468,723,244 - - 12,257,757 686,019,305 2.77% 1,561
2014 217,378,253 479,517,651 1,236,279 - 21,334,989 719,467,172 2.43% 1,723
2013 228,970,771 441,414,430 2,436,000 - 23,465,911 696,287,112 2.37% 1,682
2012 239,988,415 407,366,796 54,971,864 - 702,327,075 2.21% 1,758
2011 251,566,791 418,172,682 57,119,793 - 726,859,266 2.08% 1,820
2010 265,804,455 358,571,022 79,902,293 - 704,277,770 2.09% 1,763
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) See the Schedule of Demographic and Economic Statistics on page 226 for personal income and population data.
225
Draft (1) 02-28-2020
Fiscal Year
Ended
September 30,
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
CITY OF MIAMI, FLORIDA
RATIOS OF GENERAL BONDED DEBT OUTS TANDING
LAS T TEN FIS CAL YEARS
General
Obligation
Bonds
Less Amount;
Available in
Debt Service
Fund
$ 135,315,000 $
$ 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
9,649,590 $
$ 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)
Percentage of
Estimated
Actual Taxable
Value of
Total Property (1)
125,665,410 0.213%
$ 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
0.272%
0.341%
0.418%
0.509%
0.607%
0.688%
0.961%
0.906%
0.827%
Per Capita
(2)
261
301
361
408
462
513
545
657
693
733
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements
(1) See the Schedule ofAssessed Value and Estimated Actual Value ofTaxable Property on page 213
for property value data.
(2) See the Schedule ofDemographic and Economic Statistics on page 222 for population data.
226
CITY OF MIAMI, FLORID Draft (1) 02-28-2020
A
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF SEPTEMBER 30, 2019
Government Unit
Debt Repaid with Property Taxes:
Miami -Dade County
Miami -Dade County School Board
Subtotal, Overlapping Debt
City of Miami, Florida Direct Debt
(Includes special obligation, revenue bonds, loans, premium
(discount) accretion and capital leases)
Percentage Amount
Net Applicable to Applicable to
Debt the City of the City of
Outstanding Miami (1) Miami
$ 2,070,235,000
919,985
611,042,219
Total Direct and Overlapping Debt $ 611,042,219
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.
227
CITY OF MIAMI, FLORIDA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
Debt Limit $ 8,844,239,913 $ 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
Total Net Debt Applicable to Limit (9,649,589) 142,403,521 133,966,888 186,262,069 203,204,305 214,300,991 225,381,907 238,036,415 251,229,541 265,845,455
Legal Debt Margin $ 8,853,889,502 $ 7,557,813,543 $ 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
Total Net Debt Applicable to the
Limit as a percentage of Debt Limit -0.11% 1.85% 1.88% 2.91% 3.57% 4.29% 4.90% 5.25% 5.73% 4.95%
NetAssesed Value $ 58,961,599,417
Less Homestead Exempt Valuation 0
Total Assessed Value $ 58,961,599,417
Debt Limit for Bonds
(15% of Total Assessed Value) $ 8,844,239,913
Present Debt Application of Debt Limitation
General Obligation Debt 0
Less Amount Available in Debt Service
Fund (9,649,589)
Total Net Debt Applicable to Limit (9,649,589)
Legal Debt Margin $ 8,853,889,502
co
Draft (1) 02-28-2020
FiscalYear
Ended
September 30,
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
CITY OF MIAMI, FLORIDA
PLEDGED REVENUE COVERAGE
LAST TEN FIS CAL 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
Inte re s t
$ 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
$ 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 Coverage (2)
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
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 ofthe 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 ofthe City.
229
Draft (1) 02-28-2020
Year
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
Population(1)(2)
490,947
481,333
467,872
456,089
439,509
417,650
413,892
399,457
399,457
399,457
CITY OF MIAMI, FLORIDA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Personal Income
(Amounts Expressed Personal
in Thousands) (3) Income(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
46,338
45,440
43,278
41,883
39,880
38,860
37,834
36,896
Median Age (1)
39
39
39
39
39
39
38
38
38
38
School
Enrollment (4)
350,040
354,172
356,086
356,480
355,913
349,553
348,230
345,635
347,133
345,458
Unemployment
Rate (5)
3.1%
4.1%
4.6%
5.0%
5.5%
5.6%
9.3%
9.9%
11.5%
11.1%
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) Florida Agency for Workplace Innovation, Office of Workplace Information Services, Labor Market Statistics
* FY 2018 Personal Income Infoi,iiation not available
230
Draft (1) 02-28-2020
CITY OF MIAMI, FLORIDA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
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.
231
CITY OF MIAMI, FLORID Draft (1) 02-28-2020
A
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
Number of Employees:
General Government 638 674 642 608 519 538 540 533 505 538
Planning and Development 179 169 152 138 135 126 124 111 96 102
Community Development 35 35 35 35 38 40 43 43 60 54
Public Works 583 572 573 517 506 452 443 442 442 436
Public Safety 2,648 2,599 2,580 2,548 2,448 2,338 2,286 2,282 2,283 2,368
Public Facilities 59 63 63 54 41 41 42 41 41 41
Parks and Recreation 294 300 301 279 196 192 178 178 182 186
Total Number of Employees 4,436 4,412 4,346 4,179 3,883 3,727 3,656 3,630 3,609 3,725
Source: City of Miami, Budget Department
232
Function/Program
Community Development:
Entitlements/Grants Received
Public Safety:
Police:
Part 1 Crimes - (1)
Part 1 Arrests - (1)
Part 2 Arrests - (2)
Fire:
Number of Fire Calls
Number of EMS Calls
Number of Alarms
CITY OF MIAMI, FLORIDA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
$ 20,921 $ 19,401 N/A $ 19,287 $ 19,034 $ 19,239 $ 18,794 $ 24,364 $ 33,491 $ 37,815
20,462 20,360 23,269 23,043 23,709 25,208 25,898
2,971 3,188 2,456 3,239 3,108 3,715 3,837
18,748 17,205 17,898 21,732 22,564 27,580 26,329
15,437 15,285 19,090 14,445 13,970 12,736 13,131
81,462 82,711 86,865 87,977 86,038 83,697 79,544
96,899 97,996 105,955 102,422 100,008 96,433 92,675
28,070 27,045 26,097
4,166 4,295 4,393
25,155 22,269 26,670
15,122 16,686 14,493
79,279 81,638 76,747
94,401 98,324 91,240
Planning and Development:
Certificate of Use Permits Used 22,762 25,779 22,018 26,739 21,191 23,399 20,860 20,907 20,775 20,156
ivBusiness Tax Receipts Issued 23,368 24,144 21,592 26,661 22,566 33,877 29,686 23,117 22,478 29,548
w
w
Culture and Recreation:
Summer Food Program - Meals Served
(Lunches) N/A N/A N/A N/A N/A 123,925 119,603 98,129 92,737 59,785
Summer Food Program - Meals Served (Snacks) N/A N/A N/A N/A N/A 123,425 122,512 106,449 87,963 62,983
Solid Waste:
Refuse Collected (Tons/Day) 635 709 693 562 693 675 643 586 551 566
Recyclables Collected (Tons/Day) 54 45 56 52 39 48 52 14 14 11
Sources: Various City Departments.
Note: Indicators are not available for the general government function.
(1) Part 1 crimes and arrests include murder, rape, robbery, aggravated assault, burglary, larceny, and motor vehicle theft.
(2)Part 2 arrests include all other arrests that are not Part 1 crimes.
N/A Information not available
OZOZ-8Z-ZO
CITY OF MIAMI, FLORIDA Draft (1) 02-28-2020
CAPITAL ASSETS STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/Program 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
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 15 14 14 14 14 14
Solid Waste:
Collection Trucks 151 170 164 148 141 143 144 144 160 160
Public Works:
Streets (Miles - Paved) 661.9 661.9 661.9 663.2 663.5 663.5 663.8 662.1 662.1 662.1
Streets (Miles - Unpaved) 0.84 0.84 0.84 0.84 0.84 0.8 0.9 1.1 1.1 1.1
Transportation:
Street Resurfacing (Miles) N/A N/A 23.1 24.0 41.0 27.7 23.7 23.7 18.3 15.8
Culture and Recreation:
Parks Acreage N/A 1,316 1,316 1,497 936 897 897 897 894 894
Parks N/A 145 145 143 131 127 127 127 112 112
Swimming Pools N/A 15 15 15 15 15 15 15 15 15
Tennis Courts N/A 65 65 61 61 61 61 61 61 61
Community Centers N/A 43 43 34 43 35 34 34 34 34
Basketball Courts N/A 71 71 71 71 71 71 71 71 71
Water Playgrounds N/A 6 6 5 5 4 4 3 2 2
Soccer Fields N/A 15 15 15 15 15 15 13 13 13
Football Fields N/A 9 9 9 9 9 9 9 9 9
Baseball Fields N/A 30 30 30 30 30 30 30 30 30
Open Practice Fields N/A 29 29 2 2 2 2 2 2 2
Cricket Field N/A - - 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
234
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Draft (1) 02-28-2020
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
236
Draft (1) 02-28-2020
Draft (1) 02-28-2020
COMPREHENSIVE
A\\UAL
FINA\CIAL
REPORT
City of Miami, Florida
FISCAL YEAR ENDED
September 30, 2018
www.miamigov.com twitter.com/miamifinance305
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, 2019
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
1-2
Independent Auditor's Report on Compliance for Each Major
Federal Program and Major 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 3-5
Schedule of Expenditures of Federal Awards 6-10
Schedule of State Financial Assistance 11
Notes to Schedule of Expenditures of Federal Awards and Schedule of State Financial
Assistance 12
Schedule of Findings and Questioned Costs 13-14
R U t, .P
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, 2019, 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 20, 2020. Our report
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.
THE POWER
BEINGUNDERSTOOD
AUDIT i TAX I cNSW:MG
1
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.
72d/ PLitdot
Miami, Florida
March 20, 2020
2
RSM lt5 t,t„P
Report on Compliance for Each Major
Federal Program and Major 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
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 Major 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 major state projects for the year
ended September 30, 2019. The City's major federal programs and major 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 major 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 major 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.
THE POWER OF BEING UNli)ER$T000
AUDIT 1 TAX I CONSULTING
3
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We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program and major state project. However, our audit does not provide a legal determination of the
City's compliance.
Opinion on Each Major Federal Program and Major 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
major state projects for the year ended September 30, 2019
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 major 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 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
We have audited the financial statements of the City as of and for the year ended September 30, 2019,
and have issued our report thereon dated March 20, 2020, 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,
Rules of the Florida Auditor General, 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.
r L
hp
Miami, Florida
April 23, 2020, except for the Schedule of Expenditures of Federal Awards
and Schedule of State Financial Assistance for which the date is March 20, 2020
5
City of Miami, Florida
Schedule of Expenditures of Federal Awards
Fiscal Year Ended September 30, 2019
Federal Grantor/Pass-through Grantor/Program or Cluster Title
U.S Department of Agriculture
Pass -Through Florida Department of Health:
Child and Adult Care Food Program
Pass -Through Entity Pass -Through to
CFDA Number Grant/Contract Number Identifying Number Subrecipients Federal Expenditures
10.558 A-2384 16165FL350N1099 $ $ 73,857
S-576 16165FL350N1099/ .52,578
16165FL350N2020
126,435
Total U.S Department of Agriculture $ $ 126,435
Department of Commerce Office
Coastal Zone Management Administration Awards
11.419 NA17N0S4190059
$ 30,000
Total Department of Commerce Office $ $ 30,000
U.S Department of Housing and Urban Development
Community Development Block Grants/Entitlement Grants Cluster 14.218 B-06-MC-120013 $ - $ 248
B-07-MC-120013 56,703 137,499
B-08-MC-120013 45,486 45,486
B-10-MC-120013 42,580 109,470
B-11-MC-120013 62,633 228,932
B-12-MC-120013 2,013 20,847
B-13-MC-120013 - 17,864
B-14-MC-120013 48,883 210,951
B-15-MC-120013 14,495 734,565
B-16-MC-120013 117,120 1,092,102
B-17-MC-120013 170,735 197,406
B-18-MC-120014 960,900 4,644,746
B-19-MC-120013 - 1,700
1,521,548 7,441,816
Emergency Solutions Grant Program 14.231 E-12-MC-120002 368 384
E-13-MC-120002 1 6,656
E-14-MC-120002 337 337
E-15-MC-120002 221 221
E-16-MC-120002 14,150 14,150
E-17-MC-120002 1,782 2,569
E-18-MC-120002 117,276 406,023
134,135 430,340
(Continued)
6
City of Miami, Florida
Schedule of Expenditures of Federal Awards
Fiscal Year Ended September 30, 2019
Pass -Through Entity Pass -Through to
Federal Grantor/Pass-through Grantor/Program or Cluster Title CFDA Number Grant/Contract Number Identifying Number Subrecipients Federal Expenditures
HOME Investment Partnership Program 14.239 M-05-MC-120211 - 41,234
M-06-MC-120211 1,688
M-07-MC-120011 1,083
M-08-MC-120011 62,311
M-09-MC-120011 27,298
M-10-MC-120011 170,149
M-11-MC-120011 - 24,066
M-12-MC-120011 47,448
M-13-MC-120011 - 502,328
M-14-MC-120011 - 142,136
M-15-MC-120011 614,069
M-16-MC-120011 - 1,512,716
M-17-MC-120011 - 579,581
M-18-MC-120011 415,367
4,141,474
Housing Opportunities for Persons with AIDS 14.241 F-LH-05-F005 6,959
F-LH-10-F005 88,750
F-LH-15-F005 366,741
F-LH-16-F005 - 122,162
F-LH-17-F005 5,522,205
F-LH-18-F005 - 5,352,899
- 11,459,716
Pass -Through Miami -Dade County, Florida:
Continuum of Care Program 14.267 FL0190L4D001710 596000573 - 84,372
FL0189L4D001710 596000573 - 95,947
FL0211L4D001710 596000573 152,632
FL0189L4D001811 596000573 - 201,110
FL0190L4D001811 596000573 54,082
FL0211L4D001811 596000573 100,584
Lower Income Housing Assistance Program -Section 8 Moderate Rehabilitation 14.856 FL145MR0001
FL145MR0002
(Continued)
7
688,727
1,901,654
512,307
2,413,961
City of Miami, Florida
Schedule of Expenditures of Federal Awards
Fiscal Year Ended September 30, 2019
Federal Grantor/Pass-through Grantor/Program or Cluster Title
Section 8 Housing Choice Vouchers Cluster
Total U.S Department of Housing and Urban Development
U.S Department of Justice
CFDA Number
Pass -Through Entity Pass -Through to
Grant/Contract Number Identifying Number Subrecipients Federal Expenditures
14.871 FL-145 2,356,593
$ 1,655,683 $
28,932,627
Pass -Through Office of the Florida Attorney General:
Crime Victim Assistance 16.575 VOCA-2017-City of Miami Depa-00096 596000375 $ - $ 5,312
VOCA-2018-City of Miami Depa-00016 596000375 - 226,185
231,497
Public Safety Partnership and Community Policing Grants 16.710 2016ULWX0024 - 704,376
2017ULWX0033 - 640,002
1,344,378
Edward Byrne Memorial Justice Assistance Grant Program 16.738 2016-DJ-BX-0816 - 106,557
2018-DJ-BX-0831 - 193,699
300,256
Pass -Through Florida Department of Law Enforcement:
Edward Byrne Memorial Justice Assistance Grant Program 16.738 2017-DJ-BX-0788 2017-DJ-BX-0788 - 172,278
DNA Backlog Reduction Program 16.741 2017-AK-BX-0013 - 43,221
Edward Byrne Memorial Competitive Grant Program 16.751 2014-WY-BX-002 57,154 471,148
Comprehensive Opioid Abuse Site -Based Program 16.838 2018-AR-BX-K1019 - 2,245
Body Worn Camera Policy and Implementation 16.835 2016-BC-BX-K087 - 81,226
Equitable Sharing Program 16.922 not applicable - 534,760
Total U.S Department of Justice $ 57,154 $ 3,181,009
(Continued)
8
City of Miami, Florida
Schedule of Expenditures of Federal Awards
Fiscal Year Ended September 30, 2019
Federal Grantor/Pass-through Grantor/Program or Cluster Title
U.S. Department of Transportation
Pass -Through Florida Department of Transportation:
Highway Planning and Construction Cluster
National Priority Safety Programs - Highway Safety Cluster
Total U.S Department of Transportation
National Endowment for the Humanities
Museum Grant African American History and Culture
CFDA Number
20.205
20.616
Grant/Contract Number
Pass -Through Entity Pass -Through to
Identifying Number Subrecipients Federal Expenditures
G0R73 Not available $ - $ 903
ARJ81 Not available - 379,148
AR558/431501-1 Not available - 703
AR559/420917-1 Not available - 886
G1156
GOP50
45.309 MH-00-17-0022-17
381,640
73,084
1,485
74,569
$ $ 456,209
$ 127,842
Total National Endowment for the Humanities $ $ 127,842
U.S Department of Health and Human Services
Pass -Through Florida Agency for Persons with Disabilities:
Medical Assistance Program 93.778 Not Applicable Not available $ - $ 304,694
Total U.S Department of Health and Human Services $ $ 304,694
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 Response System
95.001 G15MI001A G15MI001A $ - $ 102,896
G19MI0001A G19MI0001A 37,568
$ 140,464
97.025 EMW-2014-CA-K00009 $ - $ 501
EMW-2015-CA-00042 - 49,113
EMW-2016-CA-00019-S01 150,103
EMW-2017-CA-00048 - 174,073
EMW-2018-CA-00008 1,121,470
EMW-95-k-4718 3,020,713
(Continued)
9
4,515,973
City of Miami, Florida
Schedule of Expenditures of Federal Awards
Fiscal Year Ended September 30, 2019
Federal Grantor/Pass-through Grantor/Program or Cluster Title
Pass -Through Entity Pass -Through to
CFDA Number Grant/Contract Number Identifying Number Subrecipients Federal Expenditures
Assistance to Firefighters Grant
Pass -Through State of Florida Division of Emergency Management:
Disaster Grants - Public Assistance (Presidentially Declared Disasters)
Pass -Through State of Florida Division of Emergency Management:
Homeland Security Grant Program
97.044 2017-F6-C111-P4310000-4101-D 126,640
2018-F7-C111-P4310000-4101-D 90,910
217,550
97.036 Z0032 4337DRFLP0000001 1,954,889
106,941
2,061,830
97.067 17-DS-V9-11-23-02-346 EMW-2016-SS-00092-S01 - 1,141,165
18-DS-X3-11-23-02-376 EMW-2017-SS-00061 2,437,477 3,254,972
19-DS-04-11-23-02-319 EMW-2018-SS-00064 134,181 588,957
18-DS-X1-11-23-02-338 EMW-2017-SS-00061 - 98,076
2,571,658 5,083,170
Preparing for Emerging Threats and Hazards 97.133 EMW-2016-GR-00097 EMW-2016-GR-00097-S01 291,748 467,951
Total U.S Department of Homeland Security $. 2,863,406 $ 12,346,474
Total Expenditures for Federal Awards $ 4,576,243 $ 45,645,754
See Notes to Schedule of Expenditures of Federal Awards and Schedule of State Financial Assistance
10
City of Miami, Florida
Schedule of State Financial Assistance
Fiscal Year Ended September 30, 2019
State Grantor/Pass-through Grantor/Program or Cluster Title
Department of Environmental Protection
Statewide Surface Water Restoration and Wastewater Projects
Total Department of Environmental Protection
CSFA Number Grant/Contract Number State Expenditures
37.039 S0774 $ 450,000
LP132OJ 1,046,635
$ 1,496,635
Department of Economic Opportunity
Division of Housing and Community Development 40.038 HL098 $ 500,000
Total Department of Economic Opportunity $ 500,000
Florida Housing Finance Corporation
State Housing Initiatives Partnership (SHIP) Program 40.901
Total Florida Housing Finance Corporation
SHIP FY2018-2019 $ 10,009
SHIP FY2017-2018 632,021
SHIP FY2016-2017 196,136
$ 838,166
Department of Financial Services
Local Government Fire Service Grants Equipment/Training Materials 43.010 2360A $ 400,000
Total Department of Financial Services $ 400,000
Florida Department of State
Historic Preservation Grants
Acquisition, Restoration of Historic Properties
Total Florida Department of State
45.031 19.H.SM.100.064 $ 23,080
45.032 M P511 259,772
$ 282,852
Department of Transportation
Public Transit Service Development Program 55.012 444353-1-84-01 $ 210,572
GE075 118,224
Total Department of Transportation $ 328,796
Department of Health
Emergency Medical Services (EMS) Matching Awards 64.003 M6026 $ 25,834
Pass -Through Miami -Dade County, Florida:
County Grant Awards 64.005 EMS County Grant #C0013 43,011
Total Department of Health $ 68,845
Total Expenditures of State Financial Assistance
See Notes to Schedule of Expenditures of Federal Awards and Schedule of State Financial Assistance
11
$ 3,915,294
City of Miami, Florida
Notes to Schedule of Expenditures of Federal Awards and Schedule of State Financial Assistance
Fiscal Year Ended September 30, 2019
Note 1. General and Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards and Schedule of State Financial
Assistance (the Schedules) present the expenditure activities of all federal programs and state awards of
the City of Miami, Florida (the City) for the year ended September 30, 2019. 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 (Chapter 10.550). 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 Chapter 10.550, 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.
12
City of Miami, Florida
Schedule of Findings and Questioned Costs
Fiscal Year Ended September 30, 2019
I — Summary of Independent Auditor's Results
Financial Statements
Type of report the auditor issued on whether the financial statements
audited were prepared in accordance with GAAP:
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?
Significant deficiency(ies) identified?
Yes X No
Yes X No
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:
CFDA Number
14.218
14.239
14.267
14.871
14.856
97.025
Name of Federal Program or Cluster
Community Development Block Grants/Entitlement Grants Cluster
HOME Investment Partnership Program
Continuum of Care Program
Section 8 Housing Choice Vouchers
Lower Income Housing Assistance Program -Section 8 Moderate Rehabilitation
National Urban Search and Rescue Response System
Dollar threshold used to distinguish between type
A and B programs: $1,369,372
Auditee qualified as low -risk auditee?
(Continued)
X Yes No
13
City of Miami, Florida
Schedule of Findings and Questioned Costs
Fiscal Year Ended September 30, 2019
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)
37.039
40.038
40.901
Dollar threshold used to distinguish between type
A and type B projects:
Yes
Yes
X No
X No
Unmodified
Yes X No
Name of State Project
Statewide Surface Water Restoration And Wastewater Projects
Division of Housing And Community Development
State Housing Initiatives Partnership (SHIP) Program
$750,000
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.
IV — Summary Schedule of Prior Audit Findings
The prior year single audit disclosed no findings in the Schedule of Findings and Questioned Costs and
no uncorrected or unresolved findings exist from the prior audit's Summary Schedule of Prior Audit
Findings.
14
City 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, 2019
Contents
Management Letter in Accordance with
Chapter 10.550, Rules of the Florida Auditor General 1-3
Appendix A — Current Year's Findings and Recommendations to Improve Financial
Management 4-5
Appendix B — Status of Prior Year's Findings and Recommendations to Improve
Financial Management 6
Independent Accountant's Report
on the Examination of the City's Compliance
with Section 218.415, Florida Statutes
7
Management Letter in Accordance with
Chapter 10.550, Rules of the
Florida Auditor General
Honorable Mayor and Members of the
City Commission
City of Miami, Florida
U P
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, 2019, and have issued our
report thereon dated March 20, 2020. Our report 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.
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; 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 Auditor
General.
THE POWER OF BEING UN ER TOO
AUDIT 1 TAX I CONSULT
1
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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 Major 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 Auditor General; 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 20, 2020, except for the report on compliance for each major federal program
and major state project and report on internal control over compliance, for which the date for those
reports are April 23, 2020. 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.
Special District Component Units
Section 10.554(1)(i)5.c., Rules of the Auditor General, requires, if appropriate, that we communicate the
failure of a special district that is a component unit of a county, municipality, or special district, to provide
the financial information necessary for proper reporting of the component unit within the audited financial
statements of the county, municipality, or special district in accordance with Section 218.39(3)(b), Florida
Statutes. In connection with our audit, we did not note any special district component units that failed to
provide the necessary information for proper reporting in accordance with Section 218.39(3)(b), Florida
Statutes.
2
Additional Matters
Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate 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.
Miami, Florida
March 20, 2020, except for the
report on compliance for each major federal program and major state
project and report on internal control over compliance, for which
the date of each report is April 23, 2020
3
City of Miami, Florida
Appendix A — Current Year Findings and Recommendations to Improve Financial Management
ML 2019-01 User Access Reviews
Criteria: Access rights to an organization's relevant financial reporting applications should be monitored
by management on an ongoing basis.
Condition: We noted that Oracle and Active Directory user access listings were provided to individual
City departments for review. However, certain departments did not respond to the request and/or did not
perform a review of the user access listings as requested by the department of innovation and
technology.
Cause: The department of innovation and technology follows up with individual departments when a
response is not received however, there is no policy in place requiring departments to respond in a timely
manner and provide documented changes that result from their reviews.
Effect: Risks include unauthorized use, disclosure of proprietary information, modification, damage or
loss of data.
Recommendation: We recommend that management implement a policy requiring each department to
perform the review of user access rights in a specified period of time from the date of the request.
Furthermore, noncompliance with the policy should be reported to the department director and city
manager, and also result in removal of system access rights due to lack of response.
Views of Responsible Officials and Planned Corrective Actions:
Oracle
The Department of Innovation and Technology agrees with the recommendation and will coordinate with
City Administration to ensure that all departments comply with the City's user access review policies and
procedures on an ongoing basis.
Active Directory
The process that was implemented last year depended on feedback from the liaisons of every
department/area, but it was not time bound. If no feedback was received, no action was taken.
Understanding that this lack of action is unacceptable, we started working on a new process and policy.
The new process sets liaison feedback to expire within 30 days and disables any reported inactive
account by default. The new policy and process were adopted in early March 2020.
4
City of Miami, Florida
Appendix A — Current Year Findings and Recommendations to Improve Financial Management
ML 2019-02 User Access De -Provisioning
Criteria: Information technology 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 termination alerts and/or Help Desk work orders are not being completed each
time user access rights are removed/disabled for terminated/separated employees.
Cause: Management represented that there was programming bug in the system which resulted in
certain employees not being identified by the system's termination alerts.
Effect: Risks include unauthorized use, disclosure of proprietary information, modification, damage or
loss of data.
Recommendation: We recommend that management implement procedures to identify and ensure that
all access de -provisioning requests are accounted for and processed in a timely manner.
Views of Responsible Officials and Planned Corrective Actions: The individuals identified during the
audit were not picked up by the alert due to a programming bug. The alert has been modified and we
successfully tested the changes against several scenarios. We will continue monitoring the alert to ensure
it picks up all cases. To ensure that we have a single source for all termination instances, the Help Desk
will be creating work orders for all termination alerts.
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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 2018-01 User Access Authorization Corrected
ML 2018-02 Data Backup and Restoration Corrected
ML 2018-03 Change Management Corrected
ML 2015-02 Accounts Receivable Corrected
ML 2014-04 User Access Reviews Corrected
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Independent Accountant's Report
The Honorable Mayor, Members of the
City Commission, and City Manager
City of Miami, Florida
ULP
We have examined the City of Miami, Florida's (the City) compliance with Section 218.415, Florida
Statutes, Local Government Investment Policies during the period October 1, 2018 to September 30,
2019. 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
period October 1, 2018 to September 30, 2019.
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.
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Miami, Florida
March 20, 2020
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