Loading...
HomeMy WebLinkAboutBack-Up DocumentsCOMPREHENSIVE ANNUAL FINANCIAL REPORT City of Miami, Florida FISCAL YEAR ENDED September 30, 2020 COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 2020 Prepared By: The Finance Department Erica T. Paschal, CPA Noel G. Ramos Director Controller Munirah Daniel, CPA Armando J. Blanco Assistant Director Treasurer Page left intentionally blank City of Miami, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended September 30, 2020 TABLE OF CONTENTS INTRODUCTORY SECTION Principal City Officials 3 City Organizational Chart 4 Letter of Transmittal 5 GFOA Certificate of Achievement 19 FINANCIAL SECTION Independent Auditor's Report 22 Management's Discussion and Analysis 26 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 Funds42 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 Required Supplementary Information: Budgetary Comparison Schedules of Revenues, Expenditures and Changes in Fund Balances: General Fund 152 Notes to Required Supplementary Information 153 Pension Schedules: Schedule of Changes in the Total OPEB Liability and Related Ratios 154 Schedule of Changes in the Net Pension Liability and Related Ratios 157 City of Miami, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended September 30, 2020 TABLE OF CONTENTS Schedule of Employer Contributions 162 Schedule of Investment Returns 167 Combining and Individual Fund Financial Statements and Schedules: Nonmajor Governmental Funds: Combining Balance Sheet 173 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 180 Budgetary Comparison Schedules: Special Revenue Funds: OMNI Community Redevelopment Agency (OMNI) Fund 187 Midtown Community Redevelopment Agency (Midtown) Fund 188 Southeast Overtown Park West Community Redevelopment Agency (SEOPW) Fund 189 Homeless Program Fund 190 Community Development Fund 191 Choice Housing Vouchers (Section 8) Fund 192 State Housing Initiatives Program (SHIP) Fund 193 Convention Center Fund 194 Economic Development & Planning Services Fund 195 Net Offices Fund 196 Parks and Recreations Fund 197 Police Services Fund 198 Law Enforcement Trust Fund 199 Public Works Services Fund 200 City Clerk Services Fund 201 Fire Rescue Special Revenue Fund 202 General Special Revenue Fund 203 Department Improvement Initiatives Fund 204 Transportation & Transit Fund 205 Miami Ballpark Parking Facilities Fund 206 Liberty City Revitalization Trust 207 Virginia Key Beach Trust 208 Solid Waste Recycling Trust 209 Bayfront Park Trust Fund 210 Debt Service Funds: General Obligation Bonds Fund 211 Special Obligation Bonds Funds 212 City of Miami, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended September 30, 2020 TABLE OF CONTENTS Fiduciary Funds: Combining Statement of Fiduciary Net Position 214 Combining Statement of Changes in Fiduciary Net Position 21 5 STATISTICAL SECTION Financial Trends: Net Position by Component 21 7 Changes in Net Position 218 Governmental Activities Tax Revenues by Source 21 9 Fund Balances - Governmental Funds 220 Changes in Fund Balances - Governmental Funds 221 Revenue Capacity: General Government Tax Revenues by Source 223 Net Assessed Value and Estimated Actual Value of Taxable Property 224 Property Tax Rates - Direct and Overlapping Governments 225 Principal Property Taxpayers 226 Property Tax Levies and Collections 227 Debt Capacity: Ratios of Outstanding Debt by Type 228 Ratios of General Bonded Debt Outstanding 229 Direct and Overlapping Governmental Activities Debt 230 Legal Debt Margin Information 231 Pledged Revenue Coverage 232 Demographics and Economic Information: Demographics and Economic Statistics 233 Principal Employers 234 Operating Information: Full -Time Equivalent City Government Employees by Function 235 Operating Indicators by Function 236 Capital Assets Statistics by Function/Program 237 Page left intentionally blank 1 TORY SECTION FRANCIS X. SUAREZ Mayor ALEX DIAZ DE LA PORTILLA Commissioner MANOLO REYES Commissioner ARTHUR NORIEGA, V City Manager KEN RUSSELL Vice -Chairman JOE CAROLLO Commissioner JEFFREY WATSON Commissioner VICTORIA MENDEZ City Attorney September 30, 2020 3 CITY ORGA CHART CITY COMMISSION Vice -Chairman: Ken Russell District 2 Commissioner: Alex Diaz de la Portilla District 1 Commissioner: Joe Carollo District 3 Commissioner: Manolo Reyes District 4 Commissioner: Jeffrey Watson District 5 City Attorney Victoria Mendez City Clerk Todd B. Hannon Independent Auditor General Theodore Guba, CPA Executive Mayor Francis X. Suarez Chief Administrator / City Manager Arthur Noriega, V Assistant City Manager Chief Financial Officer Fernando Casamayor — Finance — Grants Administration Housing and Community Development — Management and Budget — Procurement — Risk Management Real Estate and Asset Management Coconut Grove BID Downtown Development Authority Liberty City Trust Wynwood BID Little Haiti Revitalization Trust Assistant City Manager Chief of Operations Natasha Colebrook -Williams ode Compliance eneral Services dministration 1.1 uman Services nnovation and echnology arks and Recreation lid Waste 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 lhekwaba, Ph.D., PE — Building — Capital Improvement — Planning ■ Resilience and — Public Works 1 — Zoning jd Bayfront Park Management Trust Civilian Investigative Panel Miami Parking Authority Virginia Key Beach Park Trust Agenda Coordination - Communications Equal Opportunity - and Diversity Programs F—' ireRescue — Human Resources — 11 Police Civil Service 4 March 31, 2021 To the Honorable Mayor, Members of the Commission and Citizens of the City of Miami, Florida: We are pleased to present the City of Miami, Florida's ("the City") Comprehensive Annual Financial Report ("Annual Report") as of and for the fiscal year ended September 30, 2020. 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 LLP, Certified Public Accountants, have issued an unmodified opinion on the City's basic financial statements as of and for the fiscal year ended September 30, 2020. The independent auditor's report is located at the front of the financial section of this report. The management's discussion and analysis ("MD&A") immediately follows the independent auditor's report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it. This report may also be accessed via the internet athttp://www.miamigov.com/finance. City Profile & Government Structure The City is situated at the mouth of the Miami River on the western shores of Biscayne Bay. It is a main port of entry into Florida. Now 124 years old, the City is part of the nation's eighth largest metropolitan area. Incorporated in 1896, the City is the only municipality conceived and founded by a woman — Julia Tuttle. According to the U.S. Census Bureau, the City's population in 1900 was 1,700 people. Today it is a city rich in cultural and ethnic diversity of approximately 497,924 residents according to the Bureau of Economic and Business Research, University of Florida, 58.2 percent of them foreign born. In physical size, the City is not large, encompassing only 35.87 square miles. In population, the City is the largest of the 34 municipalities that make up Miami -Dade County, Florida ("the County"). The City Charter was adopted by the electors of the City 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 the County. The County is, in effect, a municipality with governmental powers affecting thirty-five cities, including the City and unincorporated areas. The County has not displaced nor replaced the cities' powers but supplements them. The County can take over activities of the City's operations if the services fall below minimum standards set by the 5 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. Since 1997, the City has been governed by a form of government known as the "mayor -city commissioner plan." There are five commissioners elected from designated districts within the City. City elections are held in November every two years on a non -partisan basis. Candidates for mayor must run as such and not for the commission in general. At each election, two or three members of the commission are elected for four-year terms. Thus, the terms are staggered so that there are always at least two experienced members of the commission. The mayor is elected at large every four years. As official head of the City, the mayor has veto authority over actions of the commission. However, the commission can override a mayoral veto if four -fifths of all commissioners present votes in favor of a resolution to override a mayoral veto. The commission action in question shall be deemed enacted or adopted and effective in accordance with its terms; otherwise, the mayoral veto shall be deemed sustained. The mayor appoints the "city manager" who functions as chief administrative officer. The city manager serves as the administrative head of the municipal government, charged with the responsibility of managing the City's financial operations and organizing and directing the administrative infrastructure. The city manager also retains full authority in the appointment and supervision of depaiIment directors, preparation of the City's annual budget and initiation of the investigative procedures. In addition, the city manager takes appropriate action on all administrative matters. The City provides a full range of services, including police and fire protection; public works activities; refuse collection; building inspections; licenses and permits; vital statistics; the construction and maintenance of streets, and other infrastructure; recreational and cultural activities; and trolley services. The accompanying financial statements include those of the City and those of its component units. Component units are legally separate organizations for which the City is financially accountable or organizations that should be included in the City's financial statements because of the nature and significance of their relationship with the City. Additional information on all these legally separate entities can be found in the notes to the financial statements. Budget Process and Control The mayor is required to prepare and deliver a budgetary address annually to the people of the City any time between one to three months preceding the beginning of the fiscal year. The city commission is required to hold public hearings on the proposed budget and to adopt the final budget no later than September 30th preceding the beginning of the fiscal year on October 1st The annual budget serves as the foundation for the City's financial planning and control. Budgets are monitored at varying levels of classification detail that include both personnel and operating as appropriation designations; however, budgetary control is legally maintained at the fund level except for the general fund, which is maintained at the departmental operating level. Budget -to -actual comparisons are provided in this report for each major individual governmental fund for which an appropriated annual budget has been adopted and all non -major governmental funds with appropriated annual budgets. 6 The major phases of the budget process are detailed in the Notes to the Required Supplementary Information Section of this report. Local Economic Condition and Outlook With one of the tallest skylines in the United States, the City is the heart of South Florida and continues to display impressive growth, as it emerges as a global city. Miami is the core of the regional U.S. construction, trade and transportation, financial activities, and tourism, leveraging the City's proximity to Latin American markets. Furthermore, Miami is a hub for international business and one of the largest concentrations of international banks in the United States. On January 30, 2020, the World Health Organization declared the coronavirus outbreak a "Public Health Emergency of International Concern" and on March 12, 2020 the City of Miami declared a State of Local Emergency due to the spread of COVID -19 in Miami -Dade County, Florida. The spread of COVID-19, a novel strain of coronavirus, has altered the behavior of business and people in a manner that is having negative effects on local, regional and global economies. The extent to which COVID-19 will continue to impact the City will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the outbreak, new information that may emerge concerning the severity of COVID-19, the actions taken to contain COVID-19 or treat its impact, and the impact of each of these items on the economies and financial markets in the United States. In response to the economic hardships caused by the COVID-19 Pandemic, Congress passed the Coronavirus Aid, Relief and Economic Security Act (CARES Act). On July 9th, 2020, the Miami - Dade Board of County Commissioners unanimously approved $10.0 million of CARES Act funds to develop a Residential Landlord and Tenant Assistance Program to support small landlords with five or fewer rental units by providing grants for rent forgiveness for tenants who are behind on rent due to the COVID-19 pandemic. On July 16th, 2020, the Miami -Dade Board of County Commissioners approved an additional $15.0 million of CARES Act funds to provide Housing and Basic Needs assistance to veterans and active duty military members. This includes support for rent, mortgage and basic needs such as groceries. With its allocation of CARES Act funds, the City of Miami launched a Business Assistance Grant program to assist qualified for -profit and not -for -profit small businesses located within City of Miami limits that suffered a loss of revenue due to the COVID-19 pandemic. The program provided eligible businesses with a one-time assistance grant equal to 20 percent of the business's annual gross revenue in 2019, capped at a maximum amount of $20,000, to cover expenses that help the business remain operational. In addition to the Business Assistance Grant program, the City also launched a Gift Card program, to assist Miami residents who experienced financial hardships due to COVID-19 and the associated economic downturn. Gift cards were distributed through the Office of the Mayor and the offices of all five Miami City Commissioners in denominations of $100 or $250 and were restricted to the purchase of groceries and pharmaceuticals. Between both programs, the City was able to distribute approximately $8.0 million of CARES Act relief funds prior to December 30, 2020. As a result of the economic challenges caused by the COVID-19 pandemic, local unemployment has increased from the previous year with Miami reporting a 8.0 percent unemployment rate as of December 2020, which is an increase from 2.2 percent reported a year ago. Over the years, a good business climate has been created for the South Florida economy, encouraging growth in construction, motion pictures, financial services, and tourism. And with growth in these sectors of the South Florida economy, employment should strengthen. However, due to the pandemic, Miami continues to progress through a phased reopening of businesses and the community to allow residents to safely get back to work, shopping, and play, but this is contingent on all persons doing their part to slow the spread of COVID-19. As with most U.S. cities, but particularly important for the Miami area given its dependence on travel - related activity, economic and revenue performance are closely aligned with the progression of the virus and widespread availability of an effective vaccine or treatment. The current deployment of the COVID-19 vaccines to the population is an indicator that points towards improvement in the local economy. According to the Miami Association of Realtors, the City's housing prices finished 2020 with a median sales price of $402,000, which is a 10.1 percent increase from the previous year. Condominiums median sales price also increased 7.8 percent to $264,000 from $245,000 in 2019. Overall, Miami registered 13,250 single-family home sales and a total of 13,095 in existing condominiums sales for 2020. Therefore, real estate has performed well but is vulnerable to near - term economic uncertainty, particularly commercial properties which account for about 35.0 percent of the City's tax base. The Miami area economy has demonstrated an ability to bounce back from past challenges, benefiting from continuous strong in -migration, resilient domestic and international tourism, and leveraging various intrinsic strengths including its deep trade and transportation infrastructure and access to Latin American markets. Local Government Financial Trend The table below summarizes over the last four fiscal years. discussed further in this letter Revenues and Transfers In Expenditures and Transfers out Net Change in Fund Balance Beginning Fund Balance Ending Fund Balance and compares General Fund revenues and expenditures and transfers Some of the reasons for these trends are actions taken by the City and under the heading of Long -Term Financial Planning. Summary of General Fund Financial Results Fiscal Years 2020 - 2017 2020 2019 2018 2017 $ 771,272,087 $ 788,115,640 $ 745,204,594 $ 706,823,792 774,651,001 775,633,819 717,884,461 678,201,723 (3,378,914) 12,481,821 27,320,133 28,622,069 199,945,372 187,463,551 160,143,418 131,521,349 $ 196,566,459 $ 199,945,372 $ 187,463,551 $ 160,143,418 8 Employment & Wealth Demographics The following information was reported by the Bureau of Labor Statistics and the United States Census Bureau. The table provides Miami demographics compared to the State of Florida and the United States. Unemployment Rate Median Household Income Persons Below Poverty Level High School Graduate or Higher Bachelor's Degree or Higher Persons Without Health Insurance Tourism United Miami Florida States 8.0% 7.9% 8.1% $ 39,049 $ 55,660 $ 62,843 23.4% 12.7% 10.5% 78.0% 88.2% 88.0% 29.6% 29.9% 32.1% 19.8% 12.8% 8.8% Miami is a major tourism hub and ranks second in the nation, after New York City, for international visitors. The City holds major annual events that attract visitors from across the country and world. These annual events include SoccerEx, Miami Marathon, Art Basel, Miami International Boat Show, Calle Ocho Festival, Bayfront Park New Year's Eve Celebration, and the Ultra Music Festival. Although the travel and leisure sector have been challenged by restrictions caused by the COVID-19 pandemic, once the public health crisis eases, these pillars of the Miami economy should continue to provide a sound basis for recovery. Miami International Airport The Miami International Airport ("MIA") is operated by the Miami -Dade Aviation Department and is property of the County government. MIA remains the premier international gateway to Florida welcoming 60 percent of all international visitors to Florida, while generating an annual revenue of $31.9 billion. Due to the COVID-19 public health crisis, MIA reported a total of 18.7 million passengers for fiscal year 2020, representing a 59.4 percent decrease from the 45.9 million passengers reported in fiscal year 2019. In addition, MIA offers more flights to Latin America and the Caribbean than any other U.S airport and serves as the countries number one airport for international freight, transporting a total of 2.3 million tons in fiscal year2020. PortMiami PortMiami, ("the Port") known as the "Cruise Capital of The World," is operated by the Seaport Department of Miami -Dade County. The Port continues to be the world's busiest cruise port and serves as a hub for Caribbean and Latin American commerce. The Port is among America's busiest ports and recognized as a global gateway. The Port is important to Miami Dade County and surrounding areas, contributing more than $43.0 billion in economic activity and generating 334,500 direct, indirect and induced jobs. The Port includes seven cruise terminals that have been designed to quickly move passengers from land to sea. The Port is the closest U.S. East Coast Deepwater container port to the Panama Canal, providing shippers fast access to the entire U.S. market. For the 2020 fiscal year, the Port 9 experienced a significant decline in cruise activity due to restrictions on cruise travel imposed as a result of the COVID-19 pandemic. During the fiscal year, there were a total of 3.5 million passengers, which is a 49 percent decrease from the 6.8 million passengers reported in 2019. In addition, 1.1 million of twenty -foot equivalent units of containerized cargo (TEUs) activity was logged for the 2020 fiscal year. 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. Financing On October 18, 2019, the City successfully issued the Series 2019 Special Obligation Parking Revenue Refunding Note for $75.5 million on a taxable basis to advance refund the Series 2010 A Marlins Stadium Project Bonds. The refunding resulted in a Net Present Value savings of $7.0 million. On July 17, 2020, the City successfully issued the Series 2020 Special Obligation Non -Ad Valorem Revenue Refunding Note for $28 million on a taxable basis to refund a portion of the Series 2012 Port of Miami Tunnel Project Bonds. The refunding resulted in a Net Present Value savings of $1.3 million. On April 15, 2020 and October 28, 2020, the City obtained a $9.3 million lease and a $16.3 million lease, respectively, from Santander Bank, N.A. under a Master Lease Purchase Agreement to purchase police and fleet vehicles and to pay financing costs. At the end of the lease, the City will own the vehicles outright; the City is not pledging any revenue as security for the lease as the vehicles themselves will collateralize the lease. In November 2017, the City of Miami voters approved the $400.0 million general obligation Miami Forever Bonds. The Bonds will fund a series of projects that will transform the future of Miami in five key categories: Sea -Level Rise and Flood Prevention ($192 million), Roadway Improvements ($23 million), Parks and Cultural Facilities ($78 million), Public Safety ($7 million) and Affordable Housing ($100 million). The bonds were validated on January 17, 2020 by the Eleventh Judicial Circuit Court. On December 12, 2018, the City of Miami Commission approved $58.0 million (of the $400.0 million Tranche 1 of Miami Forever Bond) to fund projects 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; $15.0 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. On January 28, 2021, the City of Miami Commission approved the declaration of intent to issue both taxable and tax-exempt General Obligation Bonds at an initial expected not to exceed total maximum principal amount of $40.0 million as Tranche 2 of the $400.0 million Miami Forever Bonds. Amongst other things, the intent is to reimburse the City for certain expenses incurred with respect to capital projects to be undertaken to improve affordable housing within the City's limits and associated costs. 10 Major Initiatives Miami is a modern and diverse city that is a global leader in technology, innovation and resiliency. The City is committed to elevating the quality of life of its residents by improving public safety, housing, mobility, diverse shared spaces that foster community, and efficient and transparent government. To achieve this mission, the City ensures operations are strategically aligned across the organization by developing a Strategic Plan that sets forth priorities that the City will accomplish with public resources. Some of the major objectives included by priority area are: Quality of Life o Deliver efficient and effective services. o Create and enhance shared civic spaces. o Enhance mobility and transportation options. o Transform the experience of conducting business with the City. o Protect and promote the health and well-being of all residents. Resilience o Ensure decision are data -driven and take future conditions into account. o Inform, engage and prepare residents and businesses for stresses and shocks. o Protect and enhance our waterfront. o Invest in resilient and smart public infrastructure. o Promote adaptive neighborhoods and buildings. Pathway to Prosperity o Maintain and grow diverse and inclusive economy. o Establish a supportive environment for small businesses. o Foster and promote job training and education. o Position all for success by providing access to critical services. o Increase and enhance housing options. In November 2019, the City Commission approved a resolution declaring a climate emergency, and regional collaboration on a transition plan and emergency mobilization effort to restore a safe and sustainable climate. In January 2020, the City released the Miami Forever Climate Ready climate adaptation plan, which details the adaptation actions the City will take over the next ten years to respond to flooding due to sea level rise, intensifying hurricanes and storms, and extreme heat. In addition, the City continues to encourage resident engagement as they implemented the Mayofs new Resiliency Action Forum, a monthly open forum for residents to discuss climate issues with the Mayor and City resilience staff. With these continuous efforts, the City has become one of 88 cities to earn the title of global climate leaders. For details on the City's FY 2019-2021 Strategic Plan please visit: https://www.miami gov.com/Services/Your-Government/City-of-Miami-Strategic-Plan 11 Capital Improvement Plan The six -year Capital Improvement Plan (CIP) from FY 2020 to FY 2025 includes funding of $659.6 million for 464 active projects. During FY 2020 new capital budget appropriations totaling $30.8 million will be used to fund 80 projects as detailed in the Plan. City Funds make up the largest share of funding at 59.2 percent, followed by City debt proceeds and funding received from the State at 31.0 percent and 4.0 percent, respectively. The remaining 5.8 percent is made up of funding from Miami -Dade County, 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 Program Description Capital Improvement Program Revenue by Type Amount Percent City Funds S 390.539.000 59.2°0 City Debt Proceeds 204,545.000 31.0% Private Donations/Other 5.422.000 0.8% State Grants 26.104.000 4.0% Federal Grants 4.046.000 0.6% Miami -Dade County Grants 19.791.000 3.0% Other Local Units 9.172,000 1.4010 659.619,000 Capital Improvement Program Expenditures by Fund Description 1000/0 Amount Percent General Government $ 56,228,000 8.5% Streets and Sidewalks 139,939,000 21.2% Disaster Recovery 1,013,000 0.2% Mass Transit 25,176,000 3.8% Parks and Recreation 175,340,000 26.6% Public Facilities 129,747,000 19.7% Public Safety 31,478,000 4.8% Sanitary Sewers 10,035,000 1.5% Solid Waste 980,000 0.1 % Storm Sewers 89,683,000 13.6% $ 659,619,000 12 100% Credit Rating In October of 2020, Fitch Ratings affirmed the City of Miami's 'AA' Issuer Default Rating (IDR) and the `AA-' rating on outstanding special obligation non -ad valorem revenue bonds. The rating outlook is stable. Per Fitch Ratings, the 'AA' IDR reflects the expectation that the City will continue to maintain a high level of financial flexibility through the current downturn and subsequent recovery on the strength of the City's various budgetary tools, available reserves, and ongoing careful budget management. Relevant Financial Policies The City has adopted a comprehensive set of financial policies. The policies are described below. Write -Off Policy The City adopted an accounts receivable Write -Off Policy on March 12, 2020, to set forth parameter for the management of the City to allow for the write-off of balances from certain defined types of customer accounts, whether with persons or entities, deemed uncollectible at a future date. It specifies the responsibilities over the administration of certain defined types of customer accounts receivable and the actions required to adjust those type of uncollectible accounts receivable. Further, it provides for enhanced collection efforts to ensure uniform, consistent efforts to recover receivables. Debt Management Policy The City adopted a revised Debt Management Policy on May 26, 2016, to provide guidance governing the issuance, management, continuing evaluation of and reporting on all debt obligations issued by the City. Additionally, the Policy will provide guidance for the preparation and implementation necessary to assure compliance. It is the responsibility of the Finance Committee to review and make recommendations regarding the issuance of debt obligations and the management of outstanding debt. The Finance Committee shall consist of seven voting members, consisting of five members from the local business community appointed by the City Commission, the Mayor or his designee, and the City's Finance Director as the City Manager's designee. Others who may be present at meetings of the Finance Committee to provide technical expertise and advice shall include representatives from the City Attorney's office, the Management and Budget Depailinent, the Department to which the proposed debt may relate, the City's Financial Advisor, Bond Counsel and Disclosure Counsel. Meetings will be open to all interested parties and official minutes will be taken and copies made available upon request to the City Clerk The City's Finance Committee will consider all issues related to outstanding and proposed debt obligations, and will vote on issues affecting or relating to the credit worthiness, security and repayment of such obligations, including but not limited to procurement of services, structure, repayment terms and covenants of the proposed debt obligation, and issues which may affect the security of the bonds and ongoing disclosure to bondholders and interested parties. The following policies concerning the issuance and management of debt were established in the Debt Management Policy: (a) the City will not issue debt obligations or use debt proceeds to finance current operations, (b) the City will utilize debt obligations only for acquisition, construction or remodeling of capital improvement projects that cannot be funded from current revenue sources or in such cases wherein it is more equitable to the users of the project to finance the project over itsuseful 13 life, (c) the City will measure the impact of debt service requirements of outstanding and proposed debt obligations on single year, five, ten and twenty-year periods. This analysis will consider debt service maturities and payment patterns as well as the City's commitment to a pay as you go budgetary capital allocation, (d) the City will evaluate the long-term operational impact of capital projects to the City's budget and five-year financial plan. Each proposed debt issuance will be accompanied by a statement from the City Manager stating the estimated operational impact of the project being financed, and (e) the City may periodically refinance debt to take advantage of lower interest rates which will result in a present value savings. The City may issue current refunding bonds that result in a minimum of three percent (3%) net present value savings, and advance refunding bonds that result in a minimum of five percent (5%) net present value savings. Refunding bonds shall not extend the final maturity of the bonds being refunded. If the present value savings is less than the threshold, or will result in a present value loss, and/or the maturity is greater than the maturity on the debt obligations to be refunded, the City may issue or enter into refunding Debt obligations but only after a finding by the Commission that a compelling public policy objective would be achieved by the refunding, such as eliminating restrictive bond covenants or providing additional financial flexibility. The Commission's findings may be based on a report presented with the legislation authorizing the refunding. The following other provisions shall be applicable to the City each time it considers a debt issuance: (a) the City will issue debt obligations for acquiring, constructing or renovating capital improvements or for refinancing existing debt obligations. Projects must be designed as public purpose projects by the City Commission prior to funding, and (b) all debt obligations shall have a maximum maturity of the earlier of: (i) the estimated useful life of the capital improvements being financed; or, (ii) thirty years: or, (iii), in the event they are being issued to refinance outstanding debt obligations the final maturity of the debt obligations being refinanced, unless a longer term is recommended by the Finance Committee. As the City periodically addresses its ongoing needs, the City Manager and the City Commission must ensure that the future elected officials will have the flexibility to meet the capital needs of the City. Since neither State law nor the City Charter provides any limits on the amount of debt, which may be incurred (other than the requirement to have General Obligation debt approved in advance by referendum), this policy establishes the following targets and limits which at the same time provide future flexibility: (a) debt service as a percentage of Non -Ad Valorem general fund revenues: less than or equal to 15%; (b) net debt per capita: less than or equal to $2,000; and (c) net debt to taxable assess value: less than or equal to 5%. 14 Investment Management Policy The City adopted a detailed written investment policy on February 26, 2015, that applies to all cash and investments held or controlled by the City and identified as "general operating funds." The Investment Policy does not apply to the City's Pension Funds, Deferred Compensation & Section 401(a) Plans, and funds related to the issuance of debt where there are other existing policies or indentures in effect for such funds. Additionally, any future revenues which have statutory investment requirements conflicting with the City's Investment Policy, and funds held by State agencies (e.g. Depaitinent of Revenue) are not subject to the provisions of the policy. The primary objective of the investment program is the safety of the principal of those funds within the portfolios. Investment transactions shall seek to keep capital losses at a minimum, whether they are from securities defaults or decline of market value. To attain this objective, diversification is required so that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. The portfolios are required to be managed in such a manner that funds are available to meet reasonably anticipated cash flow requirements in an orderly manner. Return on Investment is of least importance compared to the safety and liquidity objectives described in the policy. The policy stipulates that in accordance with the City's Administrative Policies, the responsibility for providing oversight and direction regarding the management of the investment program resides with the City's Finance Director, designee or investment advisor approved by the City Commission. The City Manager shall delegate to the Finance Director the responsibility for setting or adjusting policies and overseeing the City's investments and investment activities. The active management of the City's investments shall be the responsibility of the City's Finance Director, or he may delegate such responsibility, in whole or in part, to Treasurer or Assistant Finance Director or, subject to the approval of the City Commission, an investment advisor experienced in municipal finance that is registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934. The City may employ an investment advisor to assist in managing some or all of the City's portfolios. Such investment advisor must be registered with the Securities and Exchange Commission under the Investment Advisors Act of 1940. Subject to the exceptions in the City's investment policy, the City may invest in the types of securities listed in Note 2 — Deposits And Investments, under the section titled Concentration of Credit Risk. For the year ending September 30, 2020, the City has complied with its Investment and Debt Management Policies. The investment policy is adopted by City Resolution. The Finance Director, Treasurer, and the Investment Committee shall review the policy annually and the City Commission shall approve any modifications made thereto. 15 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 arise for potential expenditure overruns which cannot be offset through other sources or actions; (2) an "unassigned" fund balance reserve equal to ten percent of the prior three years average of general revenues (excluding transfers and including the contingency reserves to fund unexpected mid -year revenue shortfalls or for an emergency such as a natural or man-made disaster, which threatens the health, safety and welfare of the City's residents, businesses or visitors; and (3) the "designated" reserve equal to ten percent of the prior three years average of general revenues (excluding transfers) to fund long-term liabilities and commitments of the City, such as compensated absences, self-insurance plan deficits and anticipated adjustments in pension plan payments resulting from market losses. "Designated" fund balance shall be classified as either restricted, committed, or assigned based on standards and guidance established by the Governmental Accounting Standards Board (GASB). For the 2020 fiscal year, the City's General Fund reserves decreased by approximately $3.4 million and had an ending fund balance of approximately $196.6 million. Of the ending fund balance, approximately $96.4 million is restricted, approximately $13.8 million is non -spendable, approximately $12.5 is assigned, and approximately $73.9 million is unassigned. The City is in accordance with the Financial Integrity Ordinance which requires a minimum General Fund balance equal to 20 percent (10% Designated and 10% Unassigned) of the prior three years average of general revenues (excluding transfers), which equates to $73.9 million for both "Designated" and "Unassigned" for the 2019 fiscal year. The City's five-year forecast projects that revenues will not grow as fast as anticipated expenditures. Revenues are forecasted to grow by a total of 12.5 percent, while expenditures are projected to grow by a total of 15.9 percent. Employee salaries and wages represent the largest General Fund expenditure category. The baseline assumption used in the five -year forecast is that the cost of salaries and wages Citywide will grow from FY 2021 to FY 2025 as normal step progression is included for all collective bargaining units and similar salary increase for non -bargaining employees. Risk Management Self Insurance Program The City administers a self-insurance program for workers' compensation, tort liability, property, and group health and life insurance programs, subject to certain stop -loss provisions. The City also offers to its retirees comprehensive medical coverage and life insurance benefits through its self-insurance plan. The health and life insurance programs are administered by an independent administrator. The City funds the program on a pay as you go basis. Insurance coverage is maintained with independent carriers for property damage to City facilities. The City maintains excess coverage with independent carriers for workers' compensation and general liability. The City allows for cost allocation of pension, health insurance and worker's compensation benefits in the operating departments and a centralized account from which payments are made. 16 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 for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 2019. The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting. The attainment of this award represents a significant accomplishment by a government and its financial management team. In order to be awarded a Certificate of Achievement, the government had to publish an easily readable and efficiently organized Annual Report that satisfied both generally accepted accounting principles and applicable program requirements. A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only. We believe that our current Annual Report continues to meet the Certificate of Achievement for Excellence in Financial Reporting Program's requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. The City of Miami also received the GFOA's Distinguished Budget Presentation Award for its annual budget document for the fiscal year beginning October 1, 2019. To qualify for the Distinguished Budget Presentation Award, the government's budget document had to be judged proficient as a policy document, a financial plan, an operations guide, and a communications device. 17 Acknowledgements The preparation of this report would not have been possible without the skill, effort, and dedication of the entire staff of the Finance Department. The year-end closing, the audit, and compiling and publishing the Annual Report could not have been accomplished without hard work, commitment and personal sacrifice. We wish to thank all government depailinents for their assistance in providing the data necessary to prepare this report. The guidance and cooperation of the Mayor and City Commission in planning and conducting the financial affairs of the City is greatly appreciated. Lastly, we wish to express our appreciation to the City's General Services Administration for the reproduction of this report. Respectfully submitted, Arthur N ieg City Manager Fernando Casarnayor Assistant City Manager/CFO Erica T. Pasc al, CPA Finance Director 18 G�9 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, 2019 ��..P-7�!414a Executive Director/CEO 19 20 Page left intentionally blank 21 Independent Auditor's Report The Honorable Mayor and Members of the City Commission City of Miami, Florida RSM RSM US LLP Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Miami, Florida (the City) as of and for the year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the entities listed below: Discretely Presented Component Units: Downtown Development Authority Bayfront Park Management Trust Coconut Grove Business Improvement District Wynwood Business Improvement District Blended Component Units — Nonmajor Funds: Southeast Overtown Park Redevelopment Agency OMNI Redevelopment Agency Virginia Key Beach Park Trust Liberty City Community Revitalization District Trusts Midtown Community Redevelopment Agency Fiduciary — Pension Trust Funds: Firefighters' and Police Officers' Retirement Trust General Employees' and Sanitation Employees' Retirement Trust The discretely presented component units listed above represent 21.2 percent and 32.8 percent of the total assets and revenues, respectively, of the discretely presented component units. The blended component units listed above represent 6.4 percent and 7.5 percent of the total assets and revenues, respectively, of governmental activities, and 3.0 percent and 14.5 percent of the total assets and revenues/additions, respectively, of the aggregate remaining fund information. The fiduciary funds listed above represent 91.3 percent and 62.3 percent of the total assets and revenues/additions, respectively, of the aggregate remaining fund information. THE POWER OF BEING UNDERSTOOD AUDIT I TAXI CONSULTING RS' 1 US _ _P s the U.S. member firm of RSM Internatior.ala g.ob al,7etwo; k of independent audit, taxxa d consulting firms. Visit rsmus.cam/ aboutus inc mare &dmmat;on regard i _; iSL' ..5 LLP and RSM L. _c....risr al. The statements for the entities in the listing above were audited by other auditors whose reports have been furnished to us, and our opinions, insofar as they relate to the amounts included for the entities listed above, are based solely on the reports of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Miami, Florida as of September 30, 2020, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that management's discussion and analysis, budgetary comparison information and pension and other post -employment (OPEB) related information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We and other auditors have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The accompanying Combining and Individual Fund Financial Statements and Schedules, the Introductory Section and the Statistical Section are presented for purposes of additional analysis and are not a required part of the basic financial statements. 23 The Combining and Individual Fund Financial Statements and Schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us and other auditors. In our opinion, based on our audit, the procedures performed as described above, and the report of the other auditors, the Combining and Individual Fund Financial Statements and Schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The Introductory Section and Statistical Section information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. sw . P Miami, Florida March 31, 2021 24 Page left intentionally blank 25 Management's Discussion and Analysis As management of the City of Miami, Florida (the `City'), we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2020. 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 5-18 of this report. Financial Highlights o The liabilities and deferred inflows of resources of the City exceeded its assets and deferred outflows of re sources at the close ofthe 2020fiscal year byapproximately $786.9willicpno0itiondeficit) o The City's total net position decreased in fiscal year 2020 by $71.4 million compared to a decrease in net position of $86.0 million during fiscal year 2019. Total expenses exceeded total revenues in the current year primarily due to increases in community redevelopment areas and public safety expenses and decreases in revenues related to intergovernmental revenues and charges for services that directly resulted from the effects ofthe COVID-19 pandemic on City operations. o At the close of the current fiscal year, the City 's governmental operating G.adetal Fund) reported a fund balance of approximately $196.6 million, a decrease of approximately $3.4 million in comparison with the prior year. o The City's total outstanding long-term liabilities had a net decrease of approximately $27.9 million during the current fiscal year primarily due to a decrease in Bonds and Loan payable due to principal payments. Overview of Financial Statements This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements are comprised of three components: 1) government -wide financial statements 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -Wide Financial Statements The government -wide financial statements are designed to provide readers with a broad overview ofthe 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 fo 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 ofthe cost for the primary government and its component units' governmental activities. Both of the government -wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revergreise(nmental activities The governmental activities of the City include general government, planning and development, community development, community redevelopment areas, public works, public safety, public facilities, and parks and recreation. CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) September 30, 2020 The government -wide financial statements include not only the City itself (known asptary governme!' but also its discretely presented component units, which are other governmental units over which the City can exercise influence and/or may be obligated to provide financial subsidies . Financial information for these component units is reported separately from the financial information presented for the primary government itself. The blended component units, although legally separate, function for all practical purposes as departments of the City, and therefore have been included as an integral part of the primary government. The government -wide financial statements can be found on pages 38-39 ofthis 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 activitie s . 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 Projects Fund, Other Capital Projects Fund, Emergency Services 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 infotfm of combining statements in the combining and individual fund statements and schedules section ofthis 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. CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) September 30, 2020 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 arc 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 Financial Statements The notes provide additional information that is necessary to acquire a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 50-151 of this report. Other Infonnation 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 152-167 ofthis 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 173-186 ofthis report. Government -Wide Overall 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 $786.9 million at the close of the most recent fiscal year, resulting in a net position (deficit).The City's net position reflects its investment in capital assets (e.g. infrastructure, land, buildings, machinery and equipment); net of accumulated depreciation, less any related debt used to construct or acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must b provided from other sources, since the capital assets themselves are typically not used to liquidate these liabilities. As of September 30, 2020, the City's net investment in capital assets was approximately $665.7 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, 2020, the City's portion of restricted net position was approximately $401.3 million. The remaining portion represents an unrestricted deficit of approximately $1.9 billion, which is primarily due to outstanding liabilities for which there are no off -setting assets, which include claims payable, net pension liability, total OPEB liability, and compensated absences. At the end of the current fiscal year, the City's net position decreased from a net position (deficit) of approximately $715.5 million to a net position (deficit) of approximately $786.9 million. The reasons for this overall decrease are discussed in the following sections for governmental activities. CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) September 30, 2020 The following schedule reflects a summary ofthe statement ofnet position (deficit) compared to the prior year: Assets Current and other assets Capital Assets Total Assets Deferred Outflows of Resources Liabilities Cturrent and Other Liabilities Lone -Term Liabilities Total Liabilities Deferred Inflows of Resources Net Position (Deficit): Net Investment in Capital Assets Restricted Unrestricted (Deficit) Total Net Position (Deficit) Summary Statement of Net Position (Deficit) as of September 30, 2020 and 2019 Governmental Activities 2020 2019 S 723.854.061 S 721,665,339 1.092.258,711 1.094,248,044 1.816,112,772 566.452,576 232,669.627 2,621,648,265 2,854.317.892 315.118.144 665,680,605 401.306,194 (1.853.857.487) S (786.870,688) 1.815.913.383 447.208,269 208.420,925 2.649,502,750 2.857.923,675 120.672.038 604.198,879 372.927,622 (1.692,600.562) S (715,474,061) Change (S) S 2,188,722 (1,989,333) 199.389 119,244.307 24,248.702 (27.854,485) (3,605,783) 194.446.106 61,481.726 28,378.572 (161,256,925) S (71.396,627) Change (4) 0.30% (0.18)°c 0.01°0 26 66% 11.63° o (1..05)1i (0.13)% 161.14°o 10.18"o 7.61° o 9.53"0 9.98°0 29 CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) September 30, 2020 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, 2020 and 2019: Changes in Net Position (Deficit) as of September 30, 2020 and 2019 Governmental Activities 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 Gain (Loss) Sale of Property Investment Earnings/(Losses) - Unrestricted Total Revenues 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 (Deficit) Net Position (Deficit) - Beginning Net Position (Deficit) - Ending Governmental Activities 2020 2019 $ 236,702,616 $ 264,479,946 120,557,951 104,297,657 7,128,248 2,816,007 471,877,220 49,083,039 16,310,689 32,664,564 64,646,386 13,537,217 12.061,606 1.024.569,536 Change Change ($) (%) $ (27,777,330) 16,260,294 4,312,241 (10.50)% 15.59% 153.13% 427,204,550 44,672,670 10.46% 51,399,079 (2,316,040) (4.51)% 17,254,032 (943,343) (5.47)% 37,022,921 (4,358,357) (11.77)% 64,160,961 485,425 0.76% 13,537,217 - 17,068,757 (5,007,151) (29.33)% 985,703,910 38,865,626 3.94% 177,167,727 212,030,574 (34,862,847) 29,291,564 32,481,681 (3,190,117) 29,159,537 29,885,260 (725,723) 48,200,294 39,510,779 8,689,515 116,448,800 118,662,743 (2,213,943) 602,699,416 534,660,409 68,039,007 19,575,268 20,295,788 (720,520) 54,919,137 63,493,078 (8,573,941) 18,504,420 20,689,106 (2,184,686) 1,095,966,163 1,071,709,418 24,256,745 (71,396,628) (715,474,061) $ (786,870,688) (16.44)% (9.82)% (2.43)% 21.99% (1.87)% 12.73% (3.55)% (13.50)% (10.56)% 2.26% (86,005,509) 14,608,881 (1699)% (629,468,552) (86,005,509) 13.66% $ (715,474,061) $ (71,396,627) 9.98% As noted earlier, the City's net position decreased by approximately $71.4 million compared to prior fiscal year. The major changes are as follows: Total revenues for governmental activities increased over the prior year but were less than the total expenses for the governmental activities. Specifically, property taxes increased over the prior year by $44.7 million, an increase of 10.5 percent, which was primarily driven by new construction. During fiscal year 2020, expenses for governmental activities increased by $24.3 million, which is an increase of 2.3 percent in comparison to the 18.7 percent increase in expenses in the prior year. Expenses for Public Safety experienced the most significant increase of $68.0 million due to an increase in net pension CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) September 30, 2020 contributions or 12.7 percent during the current fiscal year. The increase in Public Safety expenses was offset by decreases of $34.9 million in General Government primary due to certain transactions related to non- departniental transactions that included reduction to health claims expenses and 8.6 million in Parks and Recreation primary due to reduction on parks other contractual services, which are decreases of 16.4 percent and 13.5 percent, respectively, from the prior year. There were also decreases in planning and development, public works, community development, public facilities and interest on long-term debt. The following charts provide a visual representation of the expenses and revenues for the governmental activities for fiscal year ended September 30, 2020: 5500,000,000 S500,000,000 5400,000,000 5300,000,000 5200,000,000 5100,000,000 5- 11 i_.I__ Expenses and Program Revenues - Governmental Activities �e tc� Pt� mat y e � � ei+�9 d 9, \a04 4 ,aQ Q0 4- o`�, Q-eL �et� be' o`co s �� e �a nor ie. k-4Q 4at�7 • Expenses ■ Revenues CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) September 30, 2020 Revenue by Source - Governmental Activities ■ Propertytaxes 46% ■ Pubic services tax 6% ■ State revenue sharng - unrestricted 2% ■ Capital grants and contributions 1% Gove rnm a ntal Funds Source 4fi Amount Property taxes 46% $ 471,877,220 Charges for services 23% 236,702,615 Operating grants and contributions 12% 120,557,951 Public services tax 6% 64,646,386 Franchise taxes 5% 49,083,039 Sales and other use taxes 3% 32,664,564 State revenue sharing - unrestricted 2v 16,310,689 Gain(Loss) Sale of Property 1X 13,537,217 Investment earnings - unrestricted 1% 12,061,606 Capital grants and contributions 1% 7,128,248 TOTAL $ 1,024,569,535 ■ Charges for services 23% ■ Franchise taxes 5% ■ Gain(Loss) Sale of Property 1; . ■ Operating grants and contributions 12% • Sales and other use taxes 3% • Investment earnings - unrestricted 1% Financial Analysis of 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 ofa government's net resources available for spending at the end of the fiscal year. The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the City's total GeneralFund balance was $196.6 million. Of this amount, the City has approximately $122.7 million retained as designated fund balance, which includes 96.4 million as restricted, approximately $13.8 million is reported as non -spendable for prepaid expenses and advances, approximately $12.5 million is designated as assignee fund balance, and approximately $73.9 million is unassigned fund balance in accordance with the City's Financial Integrity Ordinance. The General Fund's fund balance had a net decrease of approximately $3.4 million during the current fiscal year. Although expenses saw a decrease of $8.6 million, revenues also decreased by $19.0 million. COVID- 19 Pandemic negatively impacted the collection of General Fund Revenues, specifically Intergovernmental Revenues and Charges for Services. Intergovernmental Revenues includes revenues from the Miami Parking Authority, Half Cent Sales Tax and Municipal Revenue Sharing. Charges for Services are derived by charges for the use of certain city services, special events and parking surcharge. The preventive measures mandatec by the City, in addition to the State and Miami -Dade County measures, to slow the spread of coronavirus negatively impacted the ability to generate such revenues. These measures included the prohibition of on - premise food service in restaurants and retail food facilities, the closure of casinos, cardrooms, frontons, racetracks and parimutuels citywide, and a mandate that all non -essential businesses remain closed until further notice. CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) September 30, 2020 The decrease of $32.2 million that occurred in General Government, is due to the restrictive purchasing and budgeting measures implemented as a response to the COVID-19 Pandemic. The measures included a Purchasing Review Committee for all purchases greater than $50,000 and a Hiring Review Committee for the hiring of critical positions. However, the decrease was offset by the significant increase that occurred in in Public Safety at $13.4 million, primarily due to wage increases as outlined in Collective Bargaining Agreement between the City and Fraternal Order ofPolice, Walter E. Headley, Jr., Miami Lodge No. 20. Financial highlights ofthe City's other major governmental funds are as follows: The Impact Fee Fund has a fund balance of $102.1 million. The increase in fund balance of $12.4 million from the prior year resulted primarily from impact fees associated with an increase in high rise residential units being constructed. The Other Capital Project Fund has a fund balance of $117.8 million. This represents a decrease of approximately $20.7 million. The decrease can be attributed to an overall increase in capital outlay expenditures. The Emergency Services Fund has a fund balance deficit of approximately $9.2 million. This represents an increase of approximately $5.3 million. The increase is attributed to a significant increase in intergovernmental revenues received in 2020 related to FEMA grant reimbursements. The Special Obligation Bond Projects Fund has a fund balance deficit of $10.4 million. This represents a decrease of approximately $2.1 million. The decrease can be attributed to capital outlay expenditures incurred during the year. General Fund Budgetary Highlights The FY2020 Adopted Budget maintains funding for current City services and allows for a strategic number of service enhancements in some categories while reducing the overall millage rate from 8.0300 to 7.9900 for both the Operating and Debt Service Millage. This will provide more than $2.1 million of property tax relief for homeowners, business owners, and renters in the City. The General Fund budget for FY2020 of approximately $803.8 million is $3.5 million higher than last year's final amended General Fund budget of $800.2 million, a 0.44 percent increase. This is the part of the budget that funds the largest number of City functions or activities. The FY2020 budget, is guided by the City's Strategic Plan, which has three priority areas: Increasing Citywide Resilience, Creating a Pathway to Prosperity and Enhancing our Quality of Life. o The release of the Resilient 305 Plan was an important steppingstone in a long line of resilient activities. This budget contains $12.1 million of new capital projects to make our City's facilities, infrastructure, and operations able to recover quickly from shocks to society and mitigate the recurring stresses. o The commitment to expanding opportunity for every Miami resident to succeed through the creation of a pathway to prosperity is demonstrated through the City's Anti -Poverty Initiative, the Childhood Savings Accounts program, a scholarship program in partnership with Miami -Dade College, and the Mayor's Elderly Rent Subsidy Program. CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) September 30, 2020 o In an effort to improve services, this budget reflects efforts at enhancing shared spaces by providing additional funds for graffiti abatement, additional maintenance crews for parks, and an increase of 18 civilians in Police to free up sworn personnelto accomplish law enforcement duties. The City utilizes a five-year financial forecast to assist with the strategic decision -making process and to identify and prepare for future challenges. The five-year financial forecast projects that revenues will not grow as fast as anticipated expenditures. Overall, General Fund revenues are projected to grow by 16.6 percent ove the next five years. However, General Fund expenditures are projected to grow by 20.0 percent over the same period. Capital Assets and Debt Administration CapitalAssets The City's capital assets as of September 30, 2020 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 $1.9 million. Land Construction -in -Progress Buildings Improvements Machinery and Equipment Infrastructure Total Capital Assets (Net of Depreciation) As of September 30, 2020 Governmental Activities 2020 $ 121,199,691 164,334,377 201,121,853 65,991,842 75,258,399 464,352,549 2019 $ 120,473,843 126,641,268 208,782,224 78,474,025 64,492,823 495,383,861 $ 1,092,258,711 $ 1,094,248,044 Change Change ($) (%) $ 725,848 37,693,109 (7,660,371) (12,482,183) 10,765,576 (31,031,312) $ (1,989,333) 0.60% 29.76%. (3.67)% (15.91)% 16.69%® (6.26)°/ff (0.18)% Major capital asset events during the current fiscal year included the following: o Land increased approximately $0.7 million. o Construction in progress increased approximately $37.7 million. The total transfers out of construction in progress amounted to approximately $4.5 million; however, there was an addition of approximately $42.2 million in new expenditures. o Buildings decreased by approximately $7.7 million. The decrease is in large part attributed to $571 thousand in completed construction in progress projects and building acquisitions offset by $8.2 million in depreciation expense. o Improvements decreased by approximately $12.5 million. These transfers and additions are offset by depreciation expense and retirements incurred for the current fiscal year which net to $15.2 million. o Machinery and Equipment increased by approximately $10.8 million. There was $35.1 million in additions and transfers, primarily attributed to the acquisition ofnew ambulances, boats, computers, heavy duty trucks, Police and Fire equipment. These expenditures are offset by $8.9 million in retirements and approximately $23.2 million in depreciation expense for the current fiscal year. CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) September 30, 2020 o Infrastructure decreased by approximately $31.0 million. There was $2.2 million in additions of drainage improvements and the construction of mini parks. These were offset by $33.2 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 $548.4 million plus $6.5 million of unamortized bond premiums. Of this amount, $115.2 million is backed by the Limited Ad Valorem Tax Revenue; the remainder represents Special Obligation, Revenue bonds and leases secured solely by Non-Ac Valorem revenue sources. The City's net debt decreased during the current fiscal yearby$53.5 million or8.9 percent. Outstanding Debt as of September 30, 2020 and 2019 Governmental Activities 2020 2019 General Obligation Bonds - Direct Placement $ Other Direct Placements Special Obligation, Revenue Bonds and Loans Total 115,240,000 $ 135,315,000 276,905,997 178,578,991 156,260,000 288,020,000 548,405,997 $ 601,913,991 $ Change $ (20,075,000) 98,327,006 (131,760,000) $ (53,507,994) The City's current ratings for all of the various types of debt are shown below: Issue Limited General Obligation Bonds Marlins Garage Special Obligation Street and Sidewalks City of Miami, Florida Bond Ratings Moody's Aa2 Aa3 Aa3 A2 Standard &Poor's AA- AA- AA - A % Change (14.84)% 55.06% (45.75)% (8.89)% Fitch A- A+ A+ AA - Additional information on the City's long-term liabilities can be found in Note 8 in the notes to the financial statements. CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) September 30, 2020 Economic Factors and Next Year's Budget and Rates The budget is developed based on needs and performance, and follows the direction of policy as set by the elected officials. The process begins with the preparation of the financial outlook, a comprehensive review of allocation needs that are expected to be required by the City for its operations. These allocations include a review of salaries and wages (growth as dictated by negotiated union contracts); pension requirement needs, anticipated insurance premium increases, etc. These allocation needs are then compared to the Cit y'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 depaitnients for their use in preparing their budget submissions. The City's elected and appointed officials considered many factors when adopting the fiscal year 2020 budget. Included among these factors were uncertainties regarding pension costs, health insurance costs, otherpost employmen benefit costs, and other various economic indicators, including the effects ofthe COVID-19 pandemic. Between FY2021 and FY2025, General Fund revenues are forecasted to grow by a totalof12.5 percent. The largest components of General Fund revenues are Property Taxes (52.0 percent of FY 2021 General Fund revenues), Franchise Fees and Other Taxes (14.4 percent), Charges for Services (14.3 percent), Licenses an Permits (8.2 percent), and Intergovernmental Revenues (8.2 percent). Interest, Fines and Foifeitures, Other Revenues, and Transfers -In comprise the remaining three percent. In fiscal year 2020, the total adopted property tax rate is 7.9900 mills, which is a decrease from the prior year rate of 8.0300. The FY 2021 Budget for General Fund property tax revenue is $424.6 million. This budget is based on an assessed valuation of $63.0 billion and a General Fund operating millage rate of 7.5665. The millage rate is assumed to remain flat over the five-year period. Taxable property values are projected to increase by two percent in FY 2021 and five percent each remaining year of the forecast through FY 2025. This assumption is based on the expectation that the development activity in the City has leveled out and will remain flat through the end ofthe five-year period. Requests for Information This financial report is designed to provide a general overview of the City's finances for all those with an interest in the government's financtosdemonstrate the City's accountabilitQuestions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Miami's Finance Department — Director, 444 Southwe$tEenue, Suite 618, Miami, Florida 33130, or visit the City's web site at www.miamigov.com. Page left intentionally blank 37 City of Miami, Florida Statement of Net Position (Deficit) September 30, 2020 Governmental Component Activities Units Assets Cash, Cash Equivalents, and Investments $ 476,152,223 $ 20,298,913 Receivable - Net 36,382,710 2,691,757 Accrued Interest 740,482 - Due From Other Governments 33,408,870 2,689,301 Land Held for Resale 90,971 - Prepaids 7,396,803 557,514 Other Assets 640,732 12,788,193 Restricted Cash, Cash Equivalents, and Investments Related to Bond Proceeds 27,770,995 Restricted Cash, Cash Equivalents, and Investments 141,270,275 31,013,745 Capital Assets: Non -Depreciable 285,534,068 6,852,178 Depreciable - Net 806,724,643 69,159,617 Total Assets 1,816,112,772 146,051,218 Deferred Outflows of Resources Deferred Loss on Refunding Bonds 16,706,124 2,087,147 Outflow Related to Pension 244,491,593 2,140,167 Outflow Related to OPEB 305,254,859 29,940 Total Deferred Outflows of Resources 566,452,576 4,257,254 Liabilities Accounts Payable and Accrued Liabilities 72,369,186 7,485,560 Due to Other Governments 2,501,105 1,804,367 Unearned Revenue 33,582,784 1,108,792 Deposits 15,454,211 504,267 Accrued Interest Payable 4,001,666 1,164,200 Non -Current Liabilities: Due Within One Year: Bonds and Loans Payable 56,590,920 1,450,000 Compensated Absences 5,846,045 467,760 Claims Payable 42,323,710 Due In More Than One Year: Bonds and Loans Payable 498,360,149 58,326,503 Compensated Absences 68,466,784 674,215 Claims Payable 192,727,254 - Other Post Employment Benefits 867,949,431 378,491 Net Pension Liability 994,144,647 513,268 Total Liabilities 2,854,317,892 73,877,423 Deferred Inflows of Resources Inflow Related to Pension Inflow Related to OPEB Total Deferred Inflows of Resources 98,452,934 216,665,210 488,700 152,507 315,118,144 641,207 Net Position (Deficit) Net Investment in Capital Assets 665,680,605 22,495,217 Restricted for: Capital Projects 187,187,998 12,147,594 Debt Service 23,300,109 1,944,680 Parking Waiver and Transportation 15,013,278 883,674 Parking Surcharge - 438,876 Facilities Improvement 919,932 Building 88,759,071 Housing Assistance and Economic Development 9,407,506 Law Enforcement 820,489 Community Redevelopment 64,594,238 Choice Housing Voucher Program 307,637 E-911 and Public Safety 4,165,131 Other 6,830,805 Unrestricted (Deficit) (1,853,857,487) 37,879,801 Total Net Position (Deficit) $ (786,870,688) $ 75,789,842 The notes to the financial statement are an integral part of this statement. 38 City of Miami, Florida Statement of Activities For the Fiscal Year Ended September 30, 2020 Expenses Net (Expense) Revenue and Changes in Program Revenues Net Position Primary Operating Capital Government Charges for Grants and Grants and Governmental Component Services Contributions Contributions Activities Units Functions/Programs: Primary Government: Governmental Activities: General Government $ 177,167,727 $ 59,106,595 $ 17,779,282 $ 3,743,025 $ (96,538,825) $ Planning and Development 29,291,564 46,837,764 - 17,546,200 Community Development 29,159,537 369,387 26,426,977 (2,363,173) Community Redevelpment Areas 48,200,294 6,746,428 1,248,478 - (40,205,388) Public Works 116,448,800 59,206,653 42,794,684 1,261,851 (13,185,612) Public Safety 602,699,416 35,219,101 26,941,295 (540,539,020) Public Facilities 19,575,268 23,853,938 2,074,591 1,068,831 7,422,092 Parks and Recreation 54,919,137 5,362,750 3,292,644 1,054,541 (45,209,202) Interest on Long -Term Debt 18,504,420 - - - (18,504,420) Total Primary Government $ 1,095,966,163 $ 236,702,616 $ 120,557,951 $ 7,128,248 $ (731,577,348) $ Component Units: Department of Off -Street Parking $ 29,522,467 $ 38,231,097 $ $ $ $ 8,708,630 Downtown Development Authority 8,866,874 - (8,866,874) Bayfront Park Management Trust 2,891,803 1,024,652 3,729,816 1,862,665 Coconut Grove BID 1,965,179 1,414,395 - (550,784) Wynwood BID 1,049,691 936,295 - (113,396) Civilian Investigative Panel 743,253 - 953,047 209,794 Total Component Units $ 45,039,267 $ 41,606,439 $ 953,047 $ 3,729,816 $ $ 1,250,035 General Revenues: Taxes: Property Taxes, levied for general purposes Property Taxes, levied for debt service Franchise Taxes Sales and Other Use Taxes Public Service Taxes Investment Earnings - Unrestricted State Revenue Sharing - Unrestricted Other General Revenues Gain on Sale of Capital Assets Total General Revenues Change in Net Position (Deficit) Net Position - Beginning (Deficit) Net Position - Ending (Deficit) $ 448,028,007 $ 9,427,283 23,849,213 - 49,083,039 32,664,564 64,646,386 12,061,606 516,977 16,310,689 2,038,931 13,537,217 - 660,180,721 11,983,191 (71,396,627) (715,474,061) 13,233,226 62,556,616 $ (786,870,688) $ 75,789,842 The notes to the financial statement are an integral part of this statement. 39 General City of Miami, Florida Balance Sheet Governmental Funds September 30, 2020 Major Funds Special Non -Major Total Other Capital Emergency Obligation Governmental Governmental Projects Impact Fee Services Bonds Projects Funds Funds Assets Pooled Cash, Cash Equivalents, and Investments $ 175,261,394 $ 148,254,753 $ - $ 775,533 $ - $ 151,860,543 $ 476,152,223 Restricted Cash, Cash Equivalents, and Investments - - 103,966,158 - 8,149,516 56,925,596 169,041,270 Receivables (Net of Allowance for Uncollectibles): Loans Receivable - - - - - 1,794 1,794 Accounts Receivable 29,479,508 1,781 - - 1,783,279 31,264,568 Property Tax 4,799,668 - - 316,680 5,116,348 Due From Other Governments 6,421,986 4,671,049 13,499,519 8,816,316 33,408,870 Due From Other Funds 51,829,462 - - - 51,829,462 Advance to Other Funds 10,765,450 - - - 10,765,450 Accrued Interest 430,984 4,108 110,589 194,801 740,482 Prepaids 3,056,441 4,318,464 - - - 21,898 7,396,803 Other Assets 72,806 - - - - 567,926 640,732 Total Assets 282,117,699 157,250,155 104,076,747 14,275,052 8,149,516 220,488,833 786,358,002 Liabilities and Fund Balances Liabilities: Accounts Payable and Accrued Liaibilities $ 36,285,271 $ 13,215,581 $ 1,970,637 $ 3,638,289 $ 785,900 $ 12,248,548 $ 68,144,226 Other Liabilities 4,220,736 - 4,224 4,224,960 Due to Other Funds 16,510,111 19,880,104 14,050,000 1,389,247 51,829,462 Advances From Other Funds - - - - 3,766,084 6,999,366 10,765,450 Due to Other Governments 3,968 - - - - 2,497,137 2,501,105 Unearned Revenue 25,011,799 8,515,983 55,002 33,582,784 Deposits 15,229,798 - - - 224,413 15,454,211 Total Liabilities 80,751,572 38,241,675 1,970,637 23,518,393 18,601,984 23,417,937 186,502,198 Deferred Inflows of Resources Unavailable Revenue 4,799,668 1,166,300 1,975,281 7,941,249 Total Deferred Inflows of Resources 4,799,668 1,166,300 1,975,281 7,941,249 Fund Balances (Deficit): Non -Spendable Fund Balance Non Spendable 13,821,891 4,318,464 1,021,897 19,162,252 Spendable Fund Balance Restricted 96,364,271 67,283,150 102,106,110 7,525,542 151,245,616 424,524,689 Committed 61,141,172 - - 47,656,162 108,797,334 Assigned 12,516,335 6,331,402 - - 3,837,438 22,685,175 Unassigned (deficit) 73,863,962 (21,232,008) - (9,243,341) (17,978,010) (8,665,498) 16,745,105 Total Fund Balances (deficit) 196,566,459 117,842,180 102,106,110 (9,243,341) (10,452,468) 195,095,615 591,914,555 Total Fund Balances (Deficit) $ 282,117,699 $ 157,250,155 $ 104,076,747 $ 14,275,052 $ 8,149,516 $ 220,488,833 $ 786,358,002 The notes to the financial statement are an integral part of this statement. 40 City of Mla mi, Florida Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position (Deficit) September30, 2020 Fund Balances - Total Governmental Funds $ 591,914,555 Amounts reported for governmental activities in the Statement of Net Position (Deficit) are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds. Governmental Capital Assets Less: Accumulated Depreciation 2,714,892,643 (1,622,633,932) 1,092,258,711 Inventory for land held for resale are not financial resources and therefore are not reported in the governmental funds. 90,971 Deferred inflow and outflow related to the City's Pension Plans and Other Post Employment Benefit Plans (OPEB) are not sources/uses of current fmancial re source s and are therefore not reported in the governmental funds: Deferred outflows related to pensions 244,491,593 Deferred outflows related to OPEB 305,254,859 Deferred inflow related to pensions (98,452,934) Deferred inflow related to OPEB plan (216,665,210) 234,628,308 Loss on refunding of debt is recognized in the Statement of Net Position (Deficit) and amortized over the term of the bond 16,706,124 Grant receivables are reported as deferred inflows in the fund financial statements due to amounts being unavailable; under full accrual accounting they are reported as revenues. Tax receivables are reported as deferred inflows in the fund financial statements due to amounts being unavailable; under full accrual accounting they are reported as revenues. Long-term liabilities are not due and payable in the current period and therefore are not reported in the governmental funds_ Bonds, Notes, and Loans Payable Compensated Absences Claims Liability Total OPEB Liability Net Pension Liability Accrued Interest Payable (554,951,069) (74,312,829) (235,050,964) (867,949,431) (994,144,647) (4,001,666) 2,824,901 5,116,348 (2,730,410,606) Net Position (Deficit) of Governmental Activities $ (786,870,688) The notes to the financial statement are an integral part of this statement. 41 City of Miami, Florida Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For The Fiscal Year Ended September 30, 2020 General Major Funds Special Non -Major Total Other Capital Emergency Obligation Governmental Governmental Projects Impact Fee Services Bonds Projects Funds Funds Revenues Property Taxes $ 389,606,919 $ - $ - $ Franchise and Other Taxes 113,729,425 Licenses and Permits 71,893,886 Fines and Forfeitures 7,487,994 Intergovernmental Revenues 63,866,915 7,128,248 Charges for Services 103,856,883 293,789 Investment Earnings (Loss) 10,684,319 601,162 Impact Fees 2,670 24,680,663 Other 3,957,298 507,510 Total Revenues 765,083,639 7,932,217 25,281,825 30,072,827 6,167 30,078,994 $ 82,270,301 $ 471,877,220 113,729,425 7,406,726 79,300,612 1,533,948 9,021,942 67,652,213 168,720,203 3,970,144 108,120,816 3,401 772,724 12, 061,606 24,683,333 11,104,938 15, 575,913 3,401 174,710,994 1,003,091,070 Expenditures Current Operating: General Government 92,293,899 3,238,689 97,757 1,356,953 12,926 6,254,441 103,254,665 Planning and Development 26,215,179 1,403,441 13,220 - 1,249,929 28,881,769 Community Development 2,025,485 6,453 58,790 27,461,930 29,552,658 Community Redevelpment Areas 46,923,582 46,923,582 Public Works 91,336,077 2,156,541 3,756 145,974 - 16,185,169 109,827,517 Public Safety 429,253,465 2,078,780 459,693 20,875,623 1,159 16,747,856 469,416,576 Public Facilities 13,228,635 626,662 11,950 4,304 - 2,219,188 16,090,739 Parks and Recreation 46,346,507 106,331 3,383,800 174,677 1,389,117 51,400,432 Debt Service: Principal 62,764,274 62,764,274 Interest and Other Charges - 25,977,322 25,977,322 Capital Outlay 3,232,375 50,661,020 8,918,564 7,154,121 2,053,668 14,226,085 86,245,833 Total Expenditures 703,931,622 60,277,917 12,875,520 29,783,662 2,067,753 221,398,893 1,030,335,367 Excess (Deficiency) of Revenues Over (Under) Expenditures 61,152,017 (52,345,700) 12,406,305 295,332 (2,064,352) (46,687,899) (27,244,297) Other Financing Sources (Uses) Transfers In Transfers Out Proceeds from Sale of Property Payment To Escrow Agent For Refunding Issuance of Debt Total Other Financing Sources (Uses) Net Changes in Fund Balances (Deficit) Fund Balances (Deficit) - Beginning Fund Balances (Deficit) - Ending 5,291,193 23,510,379 (70,719,379) (1,083,000) 897,255 9,191,029 5,000,000 67,640,181 101,441,753 (29,639,374) (101,441,753) 13,551,817 14,449,072 (103,575,001) (103,575,001) 103,640,250 112,831,279 (64,530,931) 31,618,408 5,000,000 (3,378,914) (20,727,292) 12,406,305 5,295,332 (2,064,352) 199,945,372 138,569,472 89,699,805 (14,538,673) (8,388,116) $ 196,566,459 $ 117,842,180 $ 102,106,110 $ (9,243,341) $ (10,452,468) 51,617,873 23,705,350 4,929,974 (3,538,947) 190,165,641 595,453,501 $ 195,095,615 $ 591,914,555 The notes to the financial statement are an integral part of this statement. 42 City of Nliami, Florida Reconciiation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the S fate me nt of Activities Forthe Fiscal Ye arEnded September30, 2020 Net Changes in Fund Balances - Total Governmental Funds $ (3,538,947) 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. (1,499,999) 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. 2,811,638 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 86,245,833 Less: current year depreciation (79,897,651) 6,348,182 The net effect of various transactions involving capital assets (i.e. sales and disposals) (8,357,516) is to decrease net position. The issuance of long -tern 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 Net effect of deferring and amortizing premiums, discounts, and accretion Issuance of debt -capital lease The net effect of amortizing the loss on debt refunding Issuance of debt -refunding bonds Payment to escrow agent for refunding Some items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Compensated absences Claims payable Net OPEB liability and related deferred inflows and outflows Net pension liability and related deferred inflows and outflows Accrued interest payable 62,784,274 2,583,154 (9,256,279) 4,054,233 (103,575,000) 103,575,001 (9,359,832) 7,338,512 (60,604,860) (65,534,703) 835,515 60,165,383 (127,325,368) Change in Net Position (Deficit) of Governmental Activitie s $ (71.396.627) The notes to the financial statement are an integral part of this statement. 43 City of Miami, Florida Statement of Fiduciary Net Position Fiduciary Funds September 30, 2020 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 Pension Trust Funds $ 30,840,660 17,172,703 3,904,693 51,918,056 118,274,592 487,362,129 1,046,894,503 37,983,492 318,907,243 126,274,230 183,008,108 2,318,704,297 Securities Lending Collateral 42,231,553 Total Assets 2,412,853,906 Liabilities Obligations Under Security Lending Transactions 42,231,553 Accounts Payable 759,830 Accrued Liability 1,004,337 Payable for Securities Purchased 15,863,032 Total Liabilities 59,858,752 Net Position Restricted for Pension Benefits $ 2,352,995,154 The notes to the financial statement are an integral part of this statement. 44 City of Miami, Florida Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Fiscal Year Ended September 30, 2020 Pension Trust Funds Additions Contributions: Employer $ 118,695,841 Plan Members 30,323,322 Total Contributions 149,019,163 Investment Earnings: Net Increase in Fair Value of Investments 109,913,415 Interest 22,354,090 Dividends 15,630,394 Other 297,027 Total Investment Earnings 148,194,926 Security Lending Activities: Security Lending Income Security Lending Fees and Rebates Net Income From Security Lending Activities 475,400 (118,767) 356,633 Less Investment Expenses (8,912,264) Net Investment Earnings 139,639,295 Reimbursement from City for Administrative Costs 2,730,294 Total Additions 291,388,752 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 Net Position Restricted for Pension Benefits - End of Year 212,382,626 1,776,906 26,230,313 4,867,170 245,257,015 46,131,737 2,306,863,417 $ 2,352,995,154 The notes to the financial statement are an integral part of this statement. 45 City of Miami, Florida Statement of Net Position Discretely Presented Component Units September 30, 2020 Department Downtown Bayfront Park Coconut of Off -Street Development Management Grove Parking Authority Trust BID Assets Cash, Cash Equivalent and Investments $ 5,885,537 $ 9,399,041 $ 3,536,398 $ 603,641 Receivables (Net of uncollectible accounts) 546,256 92,836 3,762 757,181 Due From Other Governments 689,301 2,000,000 Prepaids 407,569 109,370 40,575 Other Assets 6,924,691 - 5,863,502 Restricted Assets: Cash, Cash Equivalents, and Investments 31,013,745 - Capital Assets: Non -Depreciable 6,336,049 516,129 Depreciable, Net 62,864,541 170,616 5,481,742 458,176 Total Assets 114,667,689 9,771,863 11,578,606 7,682,500 Deferred Outflows of Resources Deferred Loss on Refunding Bonds 2,087,147 - Outllow Related to Pension 2,140,167 - Outflow Related to OPEB 29,940 - Total Deferred Outflows of Resources 4,257,254 - Liabilities Accounts Payable and Accrued Liabilities 4,563,995 2,769,829 71,272 20,500 Due to Other Governments 1,804,367 - Unearned Revenue 864,912 243,880 Deposits 433,594 70,673 Accrued Interest Payable 1,164,200 - Non -Current Liabilities Due Within One Year: Bonds and Loans Payable 1,450,000 - Compensated Absences 464,880 2,880 - Due In More Than One Year: Bonds and Loans Payable 58,326,503 - Compensated Absences 513,972 160,243 - Other Post Employment Benefits 378,491 - Net Pension Liability 513,268 - Total Liabilities 70,478,182 2,932,952 385,825 20,500 Deferred Inflows of Resources Inflow Related to Pension 488,700 - Inllow Related to OPEB 152,507 - Total Deferred Inflows of Resources 641,207 - Net Position Net Investment in Capital Assets 15,684,012 170,616 5,997,871 458,176 Restricted for: Capital Projects 12,147,594 - Debt Service 1,944,680 - Parking Waiver and Transportation - - 785,274 Parking Surcharge - - 438,876 Unrestricted 18,029,268 6,668,295 5,194,910 5,979,674 Total Net Position $ 47,805,554 $ 6,838,911 $ 11,192,781 $ 7,662,000 (continued) The notes to the financial statement are an integral part of this statement. 46 City of Miami, Florida Statement of Net Position Discretely Presented Component Units September 30, 2020 Civilian Wynwood Investigative BID Panel Total Assets Cash, Cash Equivalent and Investments $ 397,144 $ 477,152 $ 20,298,913 Receivables (Net of uncollectible accounts) 1,291,722 2,691,757 Due From Other Governments - 2,689,301 Prepaids - 557,514 Other Assets - 12,788,193 Restricted Assets: Cash, Cash Equivalents, and Investments - 31,013,745 Capital Assets: Non -Depreciable - 6,852,178 Depreciable, Net 173,723 10,819 69,159,617 Total Assets 1,862,589 487,971 146,051,218 Deferred Outflows of Resources Deferred Loss on Refunding Bonds - 2,087,147 Outflow Related to Pension - 2,140,167 Outflow Related to OPEB - 29,940 Total Deferred Outflows of Resources - 4,257,254 Liabilities Accounts Payable and Accrued Liabilities 9,500 50,464 7,485,560 Due to Other Governments - 1,804,367 Unearned Revenue - 1,108,792 Deposits - 504,267 Accrued Interest Payable - 1,164,200 Non -Current Liabilities Due Within One Year: Bonds and Loans Payable - 1,450,000 Compensated Absences - 467,760 Due In More Than One Year: Bonds and Loans Payable - 58,326,503 Compensated Absences - 674,215 Other Post Employment Benefits - 378,491 Net Pension Liability - 513,268 Total Liabilities 9,500 50,464 73,877,423 Deferred Inflows of Resources Inflow Related to Pension - 488,700 Inflow Related to OPEB - 152,507 Total Deferred Inflows of Resources - 641,207 Net Position Net Investment in Capital Assets 173,723 10,819 22,495,217 Restricted for: Capital Projects - 12,147,594 Debt Service - 1,944,680 Parking Waiver and Transportation 98,400 883,674 Parking Surcharge - 438,876 Unrestricted 1,580,966 426,688 37,879,801 Total Net Position $ 1,853,089 $ 437,507 $ 75,789,842 The notes to the financial statement are an integral part of this statement. 47 City of Miami, Florida Discretely Presented Component Units Statement of Activities For the Fiscal Year Ended September 30, 2020 Expenses Program Revenues Operating Capital Charges for Grants and Grants and Services Contributions Contributions Department of Off -Street Parking Transportation 29,522,467 38,231,097 Total Department of Off -Street Parking 29,522,467 38,231,097 Downtown Development Authority Economic Development Total Downtown Development Authority Bayfront Park Parks and Recreation Total Bayfront Park Coconut Grove BID General Government Total Coconut Grove BID 8,866,874 8,866,874 2,891,803 1,024,652 - 3,729,816 2,891,803 1,024,652 - 3,729,816 1,965,179 1,414,395 1,965,179 1,414,395 Wynwood BID General Government 1,049,691 936,295 Total Wynwood BID 1,049,691 936,295 Civilian Investigate Panel General Government Total Civilian Investigate Panel Total Component Units 743,253 - 953,047 743,253 - 953,047 $ 45,039,267 $ 41,606,439 $ 953,047 $ 3,729,816 General Revenues: Taxes: Property Taxes Investment Earnings (Loss) Other General Revenues Total General Revenue Change in Net Position Net position - Beg. Net position - Ending (continued) The notes to the financial statement are an integral part of this statement. 48 City of Miami, Florida Discretely Presented Component Units Statement of Activities For the Fiscal Year Ended September 30, 2020 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 8,708,630 - - 8,708,630 8,708,630 - - 8,708,630 (8,866,874) - - (8,866,874) (8,866,874) - - (8,866,874) 1,862,665 - 1,862,665 1,862,665 - 1,862,665 - - (550,784) - (550,784) - - (550,784) - (550,784) - - (113,396) (113,396) - - (113,396) (113,396) - - 209,794 209,794 - - 209,794 209,794 $ 8,708,630 $ (8,866,874) $ 1,862,665 $ (550,784) $ (113,396) $ 209,794 $ 1,250,035 9,427,283 - - - 9,427,283 49,966 6,053 460,958 516,977 246,161 1,792,770 2,03 8,931 9,723,410 1,798,823 460,958 - 11,983,191 8,708,630 856,536 3,661,488 (89,826) (113,396) 209,794 13,233,226 39,096,924 5,982,375 7,531,293 7,751,826 1,966,485 227,713 62,556,616 $ 47,805,554 $ 6,838,911 $ 11,192,781 $ 7,662,000 $ 1,853,089 $ 437,507 $ 75,789,842 The notes to the financial statement are an integral part of this statement. 49 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2020 NOTE 1. — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The City of Miami, Florida (the "City') is located in Miami -Dade County, Florida (the "County"), was incorporated in 1896, and has a population of 497,924. 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 seatofthe County. The City comprises 35.87 square miles of land and 19.42 square miles of water. The City's Charter was adopted by the electors of the City of Miami at an election held on May 17, 1921 and was legalized and validated by Chapter 9024 of the laws of the State of Florida of 1921. During fiscal year 1997, the residents of the City voted on a referendum that created single -member districts and an Executive Mayor form of government. The City continues to operate under the Commission/City Manager form of government and provides the following services: police and fire City 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 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 ofthe governing body ofthe City. The accompanying financial statements include those of the City (the primary government) and those of its component units. Component units are legally separate organizations for which the primary government is financially accountable or organizations which should be included in the City's financial statements because of the nature and significance of their relationship with the primary government. Governmental Accounting Standards Board ("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 of an( for the year ended September 30, 2020. 50 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 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 (OMNICRA). 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, 2020 LIBERTY CITY COMMUNITY REVITALIZATION TRUST (Liberty City") — On July 10, 2001, via section 2-892 of Chapter 2 of the Code of the City of Miami Ordinance 12082, Liberty City was established and acts as a limited agency and instrumentality of the City and provides services entirely or almost entirely to the primary government. Liberty City, in cooperation with the Depailment 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). LITTLE HAITI REVITALIZATION TRUST (Little Haiti") — On April 25, 2019, via section 2-892 of Chapter 2 of the Code of the City of Miami Ordinance 13834, Little Haiti was established and acts as a limited agency and instrumentality of the City and provides services entirely or almost entirely to the primary government. Little Haiti, in cooperation with the Depaitment of Housing and Community Development and other City departments shall be responsible for oversight and facilitating the City's revitalization efforts for the redevelopment of the Little Haiti Community Revitalization District in a manner consistent with the strategy identified in the Five Year Consolidated Plan, adopted by the City Commission in February 2014. Little Haiti's specific purpose is to create jobs, attract industry and facilitate the production of goods and services in the area for residents and non-residents. The City Commission must approve Little Haiti's board membership and operating budget. The City considers itself the exclusive recipient of the services provided by Little Haiti and therefore its operations are blended in the reporting entity as a special revenue fund. There are no assets, liabilities, deferred inflows/outflows of resources or results of operations to report for the year ended September 30, 2020 and standalone audited financial statements were not issued. Discretely Presented Co mpo ne nt Units 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 (`DDA') — The DDA was created by the City in 1965 pursuant to Chapter 65-1090 of the General Laws of Florida and City Code Section 14-25. The DDA is governed by a board appointed by the City Commission and was established for the purpose of furthering the development of the Downtown Miami area by promoting economic growth in the region and strengthening downtown's appeal as a livable City as well as a regional, national and international center for commerce and culture. The City Commission must approve the DDA's operating budget and the millage levied on the special taxing district established to fund the DDA. Therefore, the DDA is fiscally dependent and the City is discretely presenting the DDA in the accompanying financial statements. 52 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 BAYFRONT PARK MANAGEMENT TRUST (`BFP')— The BFP was established by the City in 1987 under the authority of City of Miami Resolution No. 10348. The BFP was created for the purpose of managing and operating the events held at Bayfront and Bicentennial Park and the daily maintenance and upkeep of the grounds, its various amenities including the amphitheater and the Mildred and Claude Pepper Fountain. The governing body of the BFP consists of nine appointed members serving initial terms of one to three years. Upon expiration of an initial term, each successor member may be appointed by the City Commission for terms of one to three years. The BFP has appointed an executive director to act as the chief executive officer, subject to policy directives. The BFP prepares and submits an annual budget request and master plan to the City Commission for its approval for each fiscal year. Therefore, the 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 depaituient 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 of the Coconut Grove Business Improvement District ("CGBID'), where the CGBID was deemed to be approved by a majority of the affected property owners. During March 2009, under City Ordinance No. 13059, the City approved to repeal the BIC and establish a new Coconut Grove Business Improvement District Board ("CGBID Board') to stabilize and improve retail and other businesses in the CGBID 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 CGBID assessment proceeds and other funds identified. The CGBID prepares and submits an annual budget request and master plan to the City Commission for its approval for each fiscal year. Therefore, the CGBID is fiscally dependent and the City is discretely presenting the CGBID 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 (`WBID'), where the WBID 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 (`WBID Board") to manage the WBID in stabilizing and improving retail and other businesses in the WBID 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 WBID assessment proceeds and other funds identified. The WBID prepares and 53 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 submits an annual budget request to the City Commission for its approval for each fiscal year. Therefore, the WBID is fiscally dependent and the City is discretely presenting the WBID in the accompanying financial statements. HEALTH FACILITY AUTHORITY ("HFA') — The HFA is an agency established by the City in 1979 under the authority of Chapter 154, Florida Statutes and City Resolution No. 79-93 to serve as a conduit to issue revenue bonds. The City Commission must approve the HFA's board membership and operating budget. Therefore, the HFA is fiscally dependent and the City is discretely presenting the HFA in the accompanying financial statements. There are no assets, liabilities, deferred inflows/outflows of resources or results of operations to report as of and for the year ended September 30,2020. 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 Avenue 3rd Floor Miami, Florida 33136 OMNI/MIDTOWN CRA 1401 North Miami Avenue 2nd Floor Miami, Florida 33136 Virginia Key Beach Park Trust 4020 Virginia Beach Drive Miami, Florida 33149 Health Facility Authority c/o Department of Finance 444 S.W. 2dAvenue Miami, Florida 33130 Dept. of Off Street Parking 40 NW 3d Street Suite 1103 Miami, Florida 33128 Coconut Grove BID 3390 Mary Street Suite 130 Miami, Florida 33133 Downtown Development Authority Wynwood BID 200 S. Biscayne Boulevard 310 NW 26h Street Suite 2929 Suite 1 Miami, Florida 33131 Civilian Investigative Panel 970 SW It Street Suite 305 Miami, Florida 33130 Bayfront Park Mgmt. Trust 301 N. Biscayne Boulevard Miami, Florida 33132-2226 B. Government -Wide Fina nc ial S ta te me nts Miami, Florida 33127 Liberty City Community Revitalization Trust 4800 NW 1 ' Avenue Miami, Florida 33127-2218 Little Haiti Revitalization Trust 444 S.W. 2dAvenue Miami, Florida 33130 The accompanying financial statements of the City have been prepared in conformity with Generally Accepted Accounting Principles in the United States (GAAP). The 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, 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 (Deficit) 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 (Deficit) presents the financial position of the City and its discretely presented component units at the end of its fiscal year. The Statement of Activities 54 CITY OF MIANII, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment and indirect expenses (claims payable, compensated absences, pension benefits, and other pc employment benefits) are allocated to activities based on each activities pro-rata share of the cost incurred. Program revenues include 1) charges to customers or applicants who purchase, use, or directf 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 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: o 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 funds are accountei for in this fund. General operating expenditures, and capital improvement costs not paid through other funds are paid from this fund. o Other Capital Projects — This capital projects 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. olmpact Fee— This capital projects fund is used to account for the collection of impact fees and the cost of capital improvement projects for the types of improvements for which the impact fee was imposed. oEmergency Services 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. oSpecial Obligations Bonds Projects -This capital projects fund is used to account for the receipt and disbursement of bond proceeds from special obligation debt and loan agreements to be used for construction and/or acquisition activities for the City. This fund is designated by management as a major fund for public interest purposes. 55 CITY OF MIANII, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 Additionally, the City reports the following fiduciary fund type: oPension Trust Funds —The Employee Retirement Funds account for the City of Miami Fire Fighters' and Police Officers' Retirement Trust ("FIPO'), the City of Miami General Employees' and Sanitation Employees' Retirement Trust ("GESE') and Other Managed Trusts (GESE Excess Plan and GESE Staff Plan), and the Elected Officers' Retirement Trust (`FORT'). The Pension Trust Funds accumulate resources for pension benefit payments to qualified employees. D. Measurement Focus and the Financial Statement Pres entation 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. Likewise, general revenues include all taxes. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon they are both measurable and available. Revenues are considered to be available when they an collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days 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, insurab claims, pollution remediation obligations, pension benefits and other post -employment benefits are recorded only when payment is due or when the City has made a decision to fund these obligations with current available resources. Certain revenues associated with the current fiscal period are considered measurable, subject to accrua and are recognized as revenues ofthe current fiscal period when available. These include: o Property taxes o Intergovernmental revenue o Sales tax, franchise and utility taxes o Charges for services o Interest o Impact Fees All other revenue items are considered to be measurable only when cash is received by the City. 56 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 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 deposit: money market funds, debt securities, and cash with fiscal agents. Each fund's equity in the City's investment pool is considered to be a cash equivalent since funds can be deposited or effectively withdrawn at any time without prior notice or penalty. In addition, the City considers all highly liquid investments with a maturity of three months or less when purchased, to be a cash equivalent. 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 - Fair Value Measurement and Application. 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 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. In addition, certain investments are measured at the net asset value (`NAV) per share (or its equivalent) or amortized cost. 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" and advances to/from other funds and advances 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. Property taxes receivable: are adjusted to reflect the balance of delinquent taxes provided by Miami -Dade County at fiscal year end. 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 by non -spendable fund balance in the fund financial statements, which indicates that these amounts do not constitute "available spendable resources" even though they are a component of current assets. 57 CITY OF MIAN I, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 Assets Held for Resale The government -wide financial statements present as inventory 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. Capital As s e is 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 of the asset or materially extend asset lives are not capitalized. Property, plant, equipment, and infrastructure are depreciated using the straight-line method over the following estimated useful lives: Asset Years Buildings 20 - 50 Infrastructure 15 - 75 Improvements 10 - 30 Machinery and equipment 3 - 15 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. 58 CITY OF MIAN I, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 Deferred Outflows and Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources represents a consumption of net position that applies to a future period(s). The City has three items that qualifies for reporting in this category. The first two items are deferred outflow of resource related to pension benefits and other post -employment benefits (OPEB). Deferred outflows on pensions arise from differences between projected and actual earnings on pension plan investments and are amortized ti 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 the 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 debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. Amounts related to governmental fund receivables that are measurable, 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. 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 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 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 Liability -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 (`IRC") Section 401(a) primarily for directors and other unclassified administrator employees. The City also offers an optional deferred compensation plan created in accordance withIRC Section 457. For the purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City's defined benefit pension plans and additions to/deductions from the plans' fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpos benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. 59 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 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 (firefighters, 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 OPEB 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 accordance with the requirements of GASB 754ccounting and Financial Reporting for Post -employment Benefits Other than Pensions Unearned Revenue s 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 year end are as follows: Source Balance College of Policing - Lease Income $ 8,515,983 Skyrise Miami - Lease Income 8,700,361 Revenue Received in Advance 16,366,440 Total $ 33,582,784 Long -Term Obligations In the government -wide financial statements long-term debt and other long-term obligations are reported as liabilities on the statement of net position (deficit). 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. Pursuant to GASB 494ccounting and Financial Reporting for Pollution Remediation Obligalithz City has accrued for known pollution remediation obligations to address pollution remediation activities such as assessments and clean-ups. 60 CITY OF MIAN I, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 Risk Management Under the protection of the sovereign immunity limit, Florida Statutes 768.28 and Chapter 440, Florida Statutes covering Workers' Compensation, the City has established a self -insured program to provide coverage for almost all areas of liability including Workers' Compensation, General Liability, Automotive Liability, Police Professional Liability, Public Officials' Liability, and Employment Practices Liability. Section 768.28, Florida Statutes, provides for waiver of sovereign immunity in tort actions or claims against the state and its agencies and subdivisions. The present limit of recovery in the absence of special relief granted by the Florida legislature is $200,000 per person per claim or judgment. The limit of recovery for all claims or judgments arising out of the same incident or occurrence is $300,000. The City also provides group health benefits for its active employees, retirees, and their dependents through a fully self -funded health insurance program and uses a commercial carrier as the administrator. The City records a liability for Workers' Compensation, General Liability, Employee Health Programs, Automotive Liability, Police Professional Liability, Public Officials' Liability, and Employment Practices Liability. Net Position Equity in the government -wide statement of net position (deficit) 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 enabling legislation from State Statutes, City legislation or external restrictions by other governments, creditors, or grantors. Unrestricted net position (deficit) consists of all items that do not meet the definition of either of the other two components. 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. 61 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 Fund Balance GASB 54, Fund Balance Reporting and Governmental FuW pe 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. o Nonspendable Fund Balance This amount includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Examples of this would be inventory, prepaid assets, and permanent endowments. o 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. o Committed Fund Balance— This amount includes amounts that can only be used for specific purposes pursuant to constraints imposed by the City's highest level of decision making authority which is the City Commission. The commitment can only be revised or removed by adoption of a new resolution. o Assigned Fund Balance- This amount includes amounts that are constrained by the City's intent to be used for specific purposes, but are neither restricted nor committed. Assignments are made directly by formal action of the City Commission. o 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 no been restricted, committed, or assigned to specific purposes within the General Fund. An assigned fund balance cannot result in an unassigned fund balance deficit. 62 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 The following schedule classifies the City's fund balances as of fiscal year end September 30, 2020: City of Miami, Florida Fund Balance (Deficit) Classification Major Governmental Funds September 30, 2020 Major Funds General Other Capital Projects Impact Fee Special Non -Major 'Dotal Emergency Obligation Bonds Governmental Governmental Services Projects Funds Funds FUND BALANCES (DEFICIT) Non Spendable: Recycling Trust Fund $ - $ $ - S - S - $ 1,000,000 $ 1,000,000 Prepaid Items 3,056,440 4,318,464 - 21,897 7,396,801 Long Term Due from Other Funds 10,765,451 - - - - 10,765,451 13,821,891 4,318,464 1,021,897 I9,162,252 Spendable: Restricted for: Debt Service (Required by Debt Covenants) - - - - 20,788,196 20,788,196 Water Sewer Combination 17,226,638 - 17,226,638 Park Projects 14,226,659 - - - 1,312,436 15,539,095 Capital Improvements - 7,506.660 102,106,110 3,957,495 1,546,914 115,117,179 Transportation and Transit 7,605,200 1,615,451 - - 28,406,507 37,627,158 Computer and Software Upgrade - 150,000 - - - 150,000 Housing and Urban Development - - 9,715,242 9,715,242 Public Safety - 2,203,908 - - - 6,348,422 8,552,330 Building 88,759,071 - - - 88,759,071 Facilities Improvement - 10,945,535 - 482,843 919,931 I2,348,309 Public Works 10.982,737 2,804,586 13,787,323 Other 2,425,562 3,085,204 3,773,354 9,284,120 CRA - - 75,240,657 75,240,657 Economic Development 178,773 178,773 Human Services - - - - 210,598 210,598 96,364,271 67,283,150 102,106.110 7,525,542 151,245,616 424,524,689 Committed to: Housing and Urban Development - 6,199,441 6,199,441 Capital Improvement I7,542,102 - - I7,542,102 Transportation Projects - - 339,200 339,200 Public Safety - 503,123 - - - 505,128 1,008,251 Public Works 1,307,566 1,307,566 Physical Environment 47,015 - - - 47,015 Facilities Improvement 18,057,932 18,057,932 Parks Projects - 6,109,034 - - 2,622,168 8,731,202 Water -Sewer Combination 3,060,673 - 3,060,673 Other 12,940,638 37,984,570 50,925,208 Solid Waste - 561,770 - - - 5,655 567,425 Computer and Software Upgrade 513.000 513,000 Building - 498,319 - - - 498,319 61,141,172 - - - 47,656,162 108,797,334 Assigned to: Parks Projects 327,409 Public Safety Public Facilities Projects - 4,224,862 Post -Retirement Benefits, Self -Insurance Claims and Other 12,516,335 Capital lmprovement - 1,779,131 Other Human Services Unassigned: Other (deficit) 12,516,335 6,331,402 73,863,962 (21,232,008) (9,243,341) (17,978,010) 327,409 367,844 367,844 4,224,862 12,516,335 1,779,131 3,461,221 3,461,221 8,373 8,373 3,837,438 22,685,175 (8,665,498) 16,745,105 Total Fund Balance (Deficit) $ 196,566,459 $ 117,842.180 $ 102,106.110 $ (9,243,341) $ (I0,452,468) $ 195,095,615 $ 591,914,555 63 CITY OF MIAN I, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 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 fiscal years 2017, 2018, an 2019 were approximately $738.9 million. Based on this, the City is required to individually retain a designated and unassigned fund balance of approximately $73.9 million each. The designated fund balance consists of amounts classified as either restricted, committed, or assigned and such designatio shall be based on the standard and guidance established, and amended from time to time by the GASE As of September 30, 2020, the City has $108.9 million of fund balance which meets the above designated fund balance criteria, and has reported an unassigned fund balance of $73.9 million as required in accordance with the City's Financial Integrity Ordinance. These amounts combined with the non -spendable fund balance of $13.8 million equal the total General Fund Balance of$196.6 million. Use of estimates -The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities deferred inflow/outflow of resources and disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenues and expenditures/expense during the reporting period. Actual results could differ from estimates. Excess of Expe nditure s ove r Appropriations The following funds' actual expenditures exceeded appropriations for the year ended September 30, 2020: Fund General: City Manager Agenda Coordination Neighborhood Enhancement Team Human Resources Innovation and Technology Department Finance Building Planning Solid Waste Public Works and Sustainability Code Compliance Police Special Revenue: Debt Service: CRA Other Special Obligation Bonds Special Obligation Bonds Exceeds Budget Authorization 14,075 13,344 5,652 133,010 215,650 211,161 1,178,226 169,425 799,947 1,647,156 71,746 1,054,463 7,329,659 4,624,903 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. 64 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 Fund Balance (Deficits) The following funds had fund balance (deficits) in the amounts indicated as of September 30, 2020: Fund Emergency Special Revenue Fund Special Obligation Bonds Projects General Obligation Bonds Projects Deficit $ 9,243,341 10,452,468 7,118,584 The fund balance (deficit) reported as of year end, for the Emergency Services Special Revenue Fund is attributed to expenditures exceeding grant reimbursement in the current fiscal year related to Hurricane Irma and COVID-19 response activities. The City expects to receive grant reimbursements in the ensuing fiscal year to eliminate the deficit fund balance. For the Special Obligation and General Obligation Bonds Projects, the City Commission approved a Declaration of Intent, which declares the City's intent to issue bonds and reimburse the General Fund for monies advanced for capital expenditures incurred in these funds. New Accounting Pronouncements The City adopted the following pronouncement for the year ended September 30, 2020: GASB Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance The primary objective of this Statement was to provide temporary relief to governments and other stakeholders in light of the COVID-19 pandemic. That objective was accomplished by postponing the effective dates of certain provisions in Statements and Implementation Guides that first became effective or are scheduled to become effective for periods beginning after June 15, 2018, and later. The effective dates of certain provisions contained in the following pronouncements were postponed by one year: Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period Statement No. 91, Conduit Debt Obligations Statement No. 92, Omnibus 2020, Statement No. 93, Replacement of Interbank Offered Rates. The effective dates of the following pronouncements were postponed by 18 months: Statement No. 87, Leases. 65 CITY OF MIANII, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 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 of a fund participates on a dollar equivalent and daily transaction basis. Interest income (which includes unrealized gains and losses) is distributed monthly to all eligible funds, accounts and/or sub -account, based on the available cash balance at month end. The yield is determined for these eligible funds, 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 (FDIC), 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 ChaptcSrageijy for Public Deposits, which requires all Florida qualified public depositories to deposit with the Treasurer or other banking institution eligible collateral. In the event of failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses. Investments As required by Florida Statutes, the City has adopted a written investment policy, which may, from time to time, be amended by the City Commission. The purpose of the policy is to set forth the investment objectives and parameters for the management of public funds of the City and is designed to safeguard the City's funds, the availability of operating and capital funds when needed, and an investment return competitive with comparable funds and financial market indices. Investments should be made subject to the cash flow needs and such cash flows are subject to revision as market conditions and the City's needs change. However, when the invested funds are needed in whole or in part for the purpose originally intended or for more optimal investments, the Finance Director, designee, or investment advisor may sell the investment at the then -prevailing market price and place the proceeds into the proper account at the City's custodian. Diversification strategies within the established guidelines shall be reviewed and revised periodically as necessary by the Investment Committee. The Investment Committee, Finance Director, designee, or investment advisor shall have the option to further restrict investment percentages from time to time based on market conditions, risk and diversification investment strategies. The percentage allocations requirements for investment types and issuers shall be calculated based on tI original cost, at the time ofpurchase, of each investrtxtments not listed in this policy are prohibited. 66 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 The City Code authorizes the Director of Finance and/or a designee in his/her absence to purchase an( invest idle funds prudently 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 /o 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 Provinces 5% 2% Highest ST or Two Highest LT Rating Categories (A-1/P-1, AA-/Aa3, or equivalent) Corporates 25% 5% Highest ST or Two Highest LT Rating Categories (A-1/P-1, A-/Aa3, or equivalent) Municipals 25% 5% Highest ST or Three Highest LT Rating Categories (SP-1/MIG 1, A-/A3, or equivalent) Agency Mortgage -Backed Securities (MBS) 5% 40% Not Applicable Asset -Backed Securities (ABS) 5% 5% HighestSTorLTRating (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 (MNff's) 25% 25% Highest Fund Rating by all NRSROs that rate the fund (AAAm/' mf, or equivalent) Intergovernmental Pools (LGIPs) ° 25% ° 25% Highest Fund Quality and Volatility Rating Categories by all NRSROs that rate the LGIP (AAAm/AAAf, S 1, or equivalent) Florida Local Government Surplus Funds Trust Funds (`Florida Prime" or "SBA') 25% Not Applicable Highest Fund Rating by all NRSROs who rate the fund (AAAm/E mf, or equivalent) 67 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 At September 30, 2020, pooled cash, cash equivalents and investments including restricted amounts of the primary government, exclusive of the Pension Trust Funds and discrete component units balances, consisted of the following: Investment Type Balance United States Treasury Notes Federal National Mortgage Association Federal Home Loan Mortgage Corporation Federal Home Loan Bank Corporate Notes Supranational Notes Commercial Paper Money Market Fund Total Investments Bank Deposits Total Pooled Cash, Cash Equivalents and Investments 169,602,749 14,646,315 17,795,815 41,201,496 44,878,661 19,895,758 99,965,300 3,473,608 411,459,702 233,733,791 $ 645,193,493 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, 202827.8 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 Revenue 2018A CRA OMNI Tax Increment Revenue 2018B CRA OMNI Tax Increment Revenue 2017 Special Obligation Bond Citywide Radio Equipment Lease 2018C Streets & Sidewalks Total 1,546,915 24,159 495,639 2,135 8,977,363 7,342,508 3,178,056 2,189,810 4,014,410 27,770,995 The City also has an additional $3.5 million of cash, cash equivalents, and investments restricted for debt service payments which is included as a component of restricted cash, cash equivalent and investment it the statement of net position. 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. 68 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 The City's policy limits the maturity of an investment to a maximum of five years. As of September 30, 2020, 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 $ 169,602,749 Federal National Mortgage Association 14,646,315 Federal Home Loan Mortgage Corporation 17,795,815 Federal Home Loan Bank 41,201,496 Corporate Notes 44,878,661 Supranational Notes 19,895,758 Commercial Paper 99,965,300 Money Market Fund 3,473,608 Total $ 411,459,702 Weighted Average Maturity in Years 0.74 2.54 2.79 0.93 1.33 1.53 0.25 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, 2020, the City owned callable securities with a fair value of $1.34 million. The portfolio's overall weighted average duration was 0.8 years. The City's investment policy dictates that 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, 2020, the City recorded an unrealized gain of approximately $2.31 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) at the date of purchase. Commercial paper and banker's acceptances must hav the highest letter and numerical rating as provided for by at least one NRSRO. The credit ratings below were consistent among the two major rating agencies (Standard & Poor's and Moody's). The table that follows summarizes the investments by credit rating at September 30, 2020: Investment Type United States Treasury Notes Federal National Mortgage Association Federal Horne Loan Mortgage Corporation Federal Horne Loan Bank Corporate Notes Supranational Notes Comsuercial Paper Money Market Funds Standard & Poor Credit Rating AA+ AA+ AA+ AA+ A - AAA A-1 AAArn _Moody's Credit Rating Aaa Aaa Aaa Aaa A3 Aaa P-1 Aaa-inf Total Balance $ 169,602,749 14,646,315 17,795,815 41,201,496 44, 878,661 19,895,758 99,965,300 3,473,608 $ 411,459,702 69 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 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 as previously disclosed in the in the notes. As of September 30, 2020, the following issuers represent 5 percent or more of the City's investment portfolio: Issuer Percentage Federal Home Loan Bank (FHLB) 1 n%o Fair Value Measurements — The City categorizes its investments within the fair value hierarchy levels established by GASB 72. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Investments measured and reported at fair value are classified and disclosed in one of the following categories. Level 1 inputs are investments traded in an active market with available quoted prices for identical assets as of the reporting date. Level 2 inputs are inputs other than quoted prices included in level 1 that are observable for an asset or liability, either directly or indirectly, as of the reporting date. Level 3 inputs are investments not traded in an active market and for which no significant observable market inputs are available as of the reporting date. All of the City's investments are categorized as Level 2. The following table summarizes the valuation of the City's investments in accordance with the above mentioned fair value hierarchy levels as of September 30, 2020: Investments by Level: Debt Securities: United States Treasury Notes Federal National Mortgage Association Federal Home Loan Mortgage Corporation Federal Home Loan Bank Corporate Notes Supranational Notes Commercial Paper Balance Total Investments by fair value level Measured at Amortized Cost: Money Market Fund Total Rive stine nts 169,602,749.00 14,646,315 17,795,815 41,201,496 44,878,661 19,895,758 99,965,300 Fair Value Measurements Using Significant Other Observable Inputs (Level 2) $ 169,602,749 14,646,315 17,795,815 41,201,496 44,878,661 19,895,758 99,965,300 407,986,094 $ 407,986,094 3,473,608 $ $411,459,702 70 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 City of Miami Firefighters and Police Officers Retirement Trust (FIFO) FIPO's investment policy is determined by its Board of Trustees (Board) and has engaged outside investment professionals to manage the assets of the Trust The policy has been identified by the Board as having the greatest expected investment return, and the resulting positive impact on asset values funded status and benefits, without exceeding a prudent level of risk. The Trustees are authorized to acquire and retain property, real, personal or mixed and investments specifically including, bonds, debentures and other corporate obligations, and stocks, preferred or common. Alternative investments of FIPO include private equity, private debt, venture capital and equity real estate investments where no readily ascertainable market value exists. Management, in consultation with the general partner and investment advisors, have determined the fair values for the individual investments based upon net asset value per the partnership's or limited liability company's most recent available financial information adjusted for cash flow activities through September 30,2020. Please refer to Pension Note 10 for additional detail regarding FIPO. FIPO has adopted the following asset allocation policy as of September 30, 2020: AssetClass Cash and cash equivalents Domestic equities Core domestic fixed income International equities Global real estate Private equity Target Allocation 0.00% 32.00% 31.00% 22.00% 9.00% 6.00% Actual Allocation 1.93% 32.87% 25.06% 20.38% 8.07% 11.70% 100.00% 100.00% Interest Rate Risk— Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market interest rates. As a means of limiting its exposure to interest rate risk, FIPO diversifies its investments by security type and institution, and limits holdings in any one type of investment with any one issuer with various durations of maturities. 71 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 Information about the sensitivity of fair values of FIPO's investments to market interest rate fluctuations is provided by the following table that shows the distribution of FIPO's debt security investments by maturity at September 30, 2020: Fair Value Investrnent Maturities: Less than I Year 1 to 5 year 6 to 10 year Mare than 10 Years Mortgage Asset Backed Backed International U.S. Treasuries U.S. Agencies Corporate Rands Securities Securities High Yield Bond Government Bonds Total 9 4.853,052 5 85,317 9 19,270,306 $ 4,532,101 $ 24,924,507 $ 321,608,537 $ 16,845,004 $ 392,118,824 3,199,193 1,653,859 - 963,035 11,250 - 25,091 5,093.103 33,017 220,104 60.226 4,850.430 332,405 8,363,738 4,487.834 24,371,998 321,608.537 896,099 1,870,384 6.646,468 15,216,976 3.515,614 330.367,212 5,786,823 44,664,252 Credit Risk— Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. This risk is generally measured by the assignment of a rating by a nationally recognized statistical rating organization. FIPO's investment policy utilizes portfolio diversification in order to control this risk. The following table discloses credit ratings at September 30, 2020: Percentage of Investment Type/ Rating Fair Value Portfolio U.S. Agencies U.S. Treasuries U.S. Government guaranteed* 85,317 4,853,052 0.02% 1.24% 4,938,369 1.26% Credit risk debt securities: AAA 316,797,597 80.79% AA+ 4,103,510 1.05% AA 595,981 0.15% AA- 80,039 0.02% A+ 607,137 0.15% A 976,530 0.25% A- 3,093,656 0.79% BBB+ 8,439,547 2.15% BBB 9,333,772 2.38% BBB- 5,103,583 1.30% BB+ and Lower 7,653,342 1.95% Not Rated 30,395,761 7.75% Total 387,180,455 98.74% Grand Total $ 392,118.824 100.00% *Obligations of the U.S. government or obligations explicitly or implicitly guaranteed by the U.S. government do not have purchase limitations. 72 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 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 of FIPO contains limitations on the amount that can be invested in any one issuer as well as maximum portfolio allocation percentages. There were no individual investments that represent 5 percent or more ofFIPO's fiduciary net position at year end. 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's investments held in foreign currency follows: Currency Swiss Franc Australian Dollar Brazilian Real British Pound Sterling Canadian Dollar Danish Krone Euro Hong Kong Dollar Indonesian Rupiah Japanese Yen Malaysan Ringgit Mexican Peso Norwegian Krone Singapore Dollar South Korean Won Swedish Krona Taiwan Dollar Other Total Holdings valued in U.S. Dollars - International Equities 18,565,405 2,841,533 172,169 12,942,708 7,171,282 4,840,326 49,601,444 17,630,886 226,662 31,169,506 463,308 729,306 1,217,259 2,386,334 4,904,573 7,873,941 9,107,086 3,978,907 175,822,635 73 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 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, 2020, is approximately 57 days. The custodial bank and its affiliates are prohibited from borrowing FIPO's securities. The agent lends FIPO's U.S. government and agency securities and domestic corporate fixed -income and equity securities for securities or cash collateral of 102 percent of the value of the securities plus any accrued interest and international securities of 105 percent of the market value of the securities plus any accrued interest. The securities lending contracts do not allow FIPO to pledge or sell any collateral securities unless the borrower defaults. Cash collateral is invested in the agent's collateral investment pool, whose share values are based on the amortized cost of the pool's investments. Investments 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, 2020: 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 $ 2,595,900 $ 2,663,528 $ 2,663,528 International Equities 104,981 114,636 114,636 Domestic Corporate Stocks 35,764,236 36,562,659 36,562,659 Domestic Corporate Bonds 2,814,146 2,890,730 2,890,730 Total $ 41,279,263 $ 42,231,553 $ 42,231,553 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, 2020 The following table details FIPO investments as of September 30, 2020: Amount Investments, at fair value: Debt Securities (Domestic): U.S. Treasuries $ 4,853,052 U.S. Agencies 85,317 U.S. Government Obligations 4,938,369 Corporate Bonds: Corporate Bonds 19,270,306 Asset Backed Securities 4,532,101 Mortgage Backed Securities 24,924,507 Guaranteed Fixed Income 321,608,537 Debt Securities (International): International Government Bonds 3,601,538 International Corporate Bonds 13,243,466 Corporate Bonds 387,180,455 Corporate Stocks 514,274,744 International Equity 318,907,243 Real Estate 126,274,230 Private Equity 183,008,108 Total Investments $ 1,534,583,149 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, 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, 2020: FairValue Measurements Using Quoted Prices in Actives Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Investments by level: Balance (Leven) (Leve12) (Leve13) Debt Securities: U.S. treasuries $ 4,853,052 $ - $ 4,853,052 $ U.S. agencies 85,317 - 85,317 Corporate bonds 32,513,772 - 32,513,772 Asset backed securities 4,532,101 - 4,532,101 Mortgage -backed securities 24,924,507 - 24,928,157 International fixed income 3,601,538 3,601,538 Total Debt Securities 70,513,937 70,513,937 Equity Securities: Domestic Equities International Equities Total Equity Securities Alternative Investments: Private Equity Totallnvestments by fairvalue level Investments Measured atNAV Commingled Domestic Fixed Income Funds Commingled International Equity Funds Commingled Domestic Equity Funds Real Estate Investment Funds Private Equity Funds Totallnvestments measured atNAV Totallnvestments 147,483,754 147,483,754 - - 205,257,965 205,257,965 - - 352,741,719 352,741,719 6,721,837 - 6,721,837 429,977,493 S 352,741,719 321,608,537 113,649,278 366,787,339 126,274,230 176,286,272 1,104,605,656 $ 1,534,583,149 S 70,513,937 $ 6,721,837 Debt S ecurities -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 of the investment's type. 76 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 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 bases upon quoted foreign market prices and translated into U.S. dollars at the exchange rate in effect atyear end. Securities which are not traded on a national security exchange are valued by the respective fund manager or other third parties based on yields currently available on comparable securities of issuers with similar credit ratings. Alternative Investments -These investments include private equity and real estate equity investments where no readily ascertainable market value exists. To value these investments, management, in consultation with the general partner and investment advisors, determines the fair values for the individual investments based upon the partnership's or limited liability company's most recent available financial information adjusted for cash flow activities through year end. The estimated fair value of these investments may differ from values that would have been used had a ready market existed. The following table displays information regarding the FIPO Trust's investments that use NAV per share (or equivalent) to value investments. Investments Measured at NAV Commingled Domestic Fixed Income Fund$ Commingled lntemationalEquity Funds Commingled Domestic Equity Funds Real Estate Investment Funds Private Equity Funds Totallnvestments Measured at NAV Investments Measured at NAV Unfunded Fair Value Commitments $321,608,537 113,649,278 366,787,339 126,274,230 176,286,272 Redemption Frequency (if currently eligible) Daily Daily Daily - Quarterly 70,413,409 Not Applicable $ $1,104,605,656 $70,413,409 Redemption Notice Period Same day Same day Same day 45 Days Not applicable o 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 of subfunds and the currency of share classes by using derivatives instruments. o 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. o Commingled domestic equity funds which aim to pursue varying strategies in order to diversify risks and reduce volatility. These funds have a diversified portfolio of relative value and event driven hedge funds with a focus on U.S holdings. 77 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 o 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 U.S. o 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 (StaffPlan), as of September 30, 2020, are as follows: Investment Type Balance GESE Staff Trust Plan U.S.Government and Agency Securities $ 106,776,095 $ Corporate Stocks and Mutual Funds 527,845,417 4,774,342 Corporate Bonds 100,181,674 734,803,186 4,774,342 Money Market Funds and Commercial Paper 36,911,071 Total Investments $ 771,714,257 $ 4,774,342 Fair Value Measurements —The GESE Trust and Staff Flan categorizes its investments in accordance with the fair value hierarchy established by GASB 72. 78 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 The following table summarizes the valuation of the GESE Trust and Staff Plan investments accordance with the GASB 72 fair value hierarchy levels as of September 30, 2020: Investments by level Debt Securities: US Government and Agency Securities Corporate Bonds Mortgage Bonds Total Debt Securities Equity Securities: Corporate Stocks Total Equity Securities Total Investments by fairvalue level Investments Measured atNAV GESE Trust Balance S ta if Plan Balance $ 45,536,323 $ 100,181,674 61,239,771 206,957,768 FairValue Measurements Using Quoted Prices in Actives Significant Markets for Other Identical Observable Assets Inputs (Level1) (Level2) $ 31,547,565 21,949,805 3,833,610 - 57,330,980 284,501,972 - 284,501,972 - $491,459,740 - 284,501,972 284,501,972 $341,832,952 $ 13,988,758 78,231,868 57,406,161 149,626,787 S149,626,787 International Equitie s Commingle d 60,395,271 Domestic Commingled Funds SSGA 146,675,557 Domestic Mutual Fund T Rowe Price 36,272,618 Money Market Funds 36,911,071 - Vanguard - 4,774,342 Total Investments measured at NAV 280,254,517 4,774,342 Totallnvestments Measured at Fair Value $771,714,257 $ 4,774,342 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 and commercial mortgages, Treasury Inflation -Protected Securities (TIPS) and foreign debt securities. These securities can typically be valued using the close or last traded price on a specific date (quoted prices in active markets). When quoted prices are not available, fair value is determined based on valuation models that use inputs that include market observable inputs. These inputs include recent trades, yields price quotes, cash flows, maturity, credit ratings, and other assumptions based upon the specifics of the investments 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 simit credit ratings. 79 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 The following table displays information regarding the GESE Trust and Staff Plan investments that use NAV per share (or equivalent) as their fair value measurement: Investment Type Balance International Equities Commingled $ 60,395,271 Domestic Commingled Funds SSGA 146,675,557 Domestic Mutual Fund T Rowe Price 36,272,618 Money Market Funds 36,911,071 Vanguard 4,774,342 Total lnvestmentMeasured at NAV $ 285,028,859 There are no unfunded commitments or redemption notice period. Redemption Frequency Monthly Daily Daily Daily Daily 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 an 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, 2020: Asset Class U.S Large Cap Equity U.S Small Cap Equity International Equity U.S Fixed Income Real Estate Cash and Other Target Allocation 48.0% 9.0% 10.0% 30.0% 0.0% 3.0% Actual Allocation 56.0% 5.1% 7.8% 26.7% 0.0% 4.4% 100% 100% 80 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 Interest Rate Risk— The GESE Trust limits the maturities of investments to control this risk. The GESE Trust investment policy requires that the average maturity of the fixed -income asset class be targeted within a range of three to ten years. In addition, each manager is expected to keep its maturity at +/- one year of the benchmark duration. The GESE Trust utilizes duration to manage its risk to changes in interest rates. The following represents investment value and weighted average maturity of the GESE Trust investments at September 30, 2020: Weighted Avg. Investment Type Fair Value Maturity Years Other Government $ 415,000 12.01 Asset - Backed 3,020,000 2.14 Corporate Bonds - Bank 28,645,000 3.46 Corporate Bonds - Finance 13,004,000 6.71 Corporate Bonds - Industrial 39,233,000 8.08 Corporate Bonds - Transportation 2,893,000 11.09 Corporate Bonds - Electric Utility 4,723,000 9.42 US Treasury Bonds 10,379,000 22.98 US Treasury Notes 28,372,000 4.69 US Treasury Bills 6,926,000 0.40 US Agency 21,799,000 0.36 Yankee - Finance 3,260,000 4.30 Yankee - Industrial 2,861,000 8.01 Mortgages 43,493,000 9.06 Cash - Money Market Funds 3,255,000 0.00 Total $ 212,278,000 Credit Risk — The GESE Trust utilizes portfolio diversification as well as limiting investments to the highest rated securities as rated by nationally recognized rating agencies. The GESE Trust's Investment Policy limits credit risk by requiring fixed -income securities to be rated by Moody's as a Baa3/BBB- or better. However, a maximum of 20 percent of each manager's portfolio may be invested in high yield securities rated by Moody's/S&P as Caa/CCC or better. 81 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 At September 30, 2020, 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* $ 45,677,000 US Agency* 21,799,000 Other Government** 415,000 Asset -Backed * * 3,020,000 Mortgages** 39,289,000 Aaa 3,259,000 Aa 8,178,000 A 58,177,000 Baa 26,373,000 Ba 1,497,000 Not Rated 1,339,000 Cash 3,255,000 Total $ 212,278,000 * Implied AAA rating ** There is no rating classification for these investments Custodial Credit Risk —This is the risk that in the event of the failure of the counterparty, the GESE Trust will not be able to recover the value of its investments that are in the possession of an outside party. The GESE Trust utilizes an independent custodial safekeeping agent for its investments. The GESE Trust's custodial credit is limited because its investments are registered in the name of the plan. Concentration of Credit Risk —The GESE Trust utilizes limitations on securities of a single issuer or industry to manage this risk. The GESE Trust investment policy requires that corporate bond issues must be diversified by industry and in number so that no investment in the securities of a single issue shall exceed 7 percent (at market) of the value of the portfolio. Single industry weightings will be a maximum of 25 percent, except U.S. government and agency securities. Investments issued or explicitly guaranteed by the U.S. Government and investments in mutual funds, external investment pools and other pooled investments are not subject to concentration of credit risk. At September 30, 2020, 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, 2020, the GESE Trust did not have any foreign denominated fixed income investments. 82 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 StaffPlan The investment policy for the StaffPlan was determined by the Board of Trustees and is monitored by the Staff Plan'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 the actuarial interest assumptioi rate, and performance results that rank in the top half of the investment consultant 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 StaffPlan. The StaffPlan has adopted the following asset allocation policy as of September 30, 2020: Target Actual AssetClass Allocation Allocation U.S Large Cap Equity 48.0% 54.8% U.S Small Cap Equity 9.0% 12.2% International Equity 10.0% 7.0% CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 The table below summarizes StaffPlan investments by credit rating at September 30, 2020: Investment Type/Rating Fair Value Government* $ 812,600 Aaa 39,800 Aa 39,800 A 134,200 Baa 216,200 Total $ 1,242,600 * 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 Plan 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 that 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 Plan 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 Plan 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, 2020, the StaffPlan did not have any positions with issuers greater than 5 percent. Foreign Currency Risk — The Staff Plan Investment policy prohibits investments in foreign currency denominated securities and is therefore not exposed to foreign currency risk. ElectedO(ficer's Retirement Trust (FORT) The EORT Trust follows the City's investment policy. As September 30, 2020, the investments of EORT are as follows: Investment Type Fair Value U.S. Treasuries Federal Home Loan Bank Money Market Fund Total 5,061,797 1,498,331 1,072,421 S 7,632,549 84 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 The EORT has the following target asset allocation as of September 30, 2020: Asset Class Target Allocation U.S Fixed Income 85% Cash 15% 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 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, 2020, 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 0.92 Federal Home Loan Bank 1.00 Money Market Funds Less than 1 year The investments at September 30, 2020, were in compliance with the City's investment policy at the time of purchase. Credit Risk— The Plan's investment policy minimizes credit risk by restricting authorized investments to the highest ratings of at least one of the nationally recognized statistical rating organizations (NRSROs). At September 30, 2020, 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 a major rating agency. FHLB debt securities (also known as consolidated obligations, or "COs') are rated by both Moody's and Standard &Poor's. All long-term debt issued by the FHLBanks is rated Aaa by Moody's and AA+ by Standard & Poor's. All short-term debt is rated P-1 by Moody's and A-1+ by Standard &Poor's. 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 al 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. 85 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 Concentration of Credit Risk — The Plan's policy establishes limitations on portfolio composition by investment type and by issuer to limit its exposure to concentration of credit risk. The policy provides that a maximum of 20 percent of the portfolio may be invested in SEC registered money market funds with no more than 10 percent to any single money market fund. A maximum of 100 percent of available funds may be invested in the Local Governments Surplus Funds Trust Fund. A maximum of 100 percent 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, 2020, 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 values of the EORT's investments in accordance with GASB 72 fair value hierarchy levels as of September 30, 2020: Investments by level: Fair Value Debt Securities: Federal Home Loan Bank $ United States Treasury Notes 5,061,797 Total Investments by fair value level 6,560,128 Measured at Amortized Cost: Money Market Fund 1,072,421 Total Investments $ 7,632,549 Fair Va lue Measurements Using Significant Other Observable Inputs (Leve12) 1,498,331 $ 1,498,33 5,061,797 6,560,121 Debt Securities —Debt Securities consist primarily of U.S. Treasury Notes and Federal Home Loan Bank investment. These securities can typically be valued using the close or last traded price on specific date (quoted prices in active markets). 86 CITY OF MIANII, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 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 foruncollectible accounts are as follows: Other Capital Emergency' Non -Major Receivables General Projects Impact Fee Services Funds l'otal Accounts $ 50,991,315 $ 2,065,581 5 245,942 5 $ 3,952,542 $ 57,255,380 Property Tax 4,799,668 - 316,680 5,116,348 Due From Other Governments 6,421,986 4,671,049 - 13,499,519 8,816,316 33,408,870 Loans Receivable - - 13,823,713 13,823,713 Gross Receivables 62,212,969 6,736,630 245,942 13,499,519 26,909,251 109,604,311 Less: Allowance for Uncollectibles (21,511,807) (2,063,800) (245,942) _ (15,991,182) (39,812,731) Total Receivables, net $ 40,701,162 $ 4,672,830 $ - $ 13,499,519 $ 10,918,069 $ 69,791,580 The City, the County, U.S. Department of Housing and Urban Development (HUD) and Parrot Jungle and Gardens of Watson Island Inc. (Jungle Island) entered into various agreements that allowed Jungle Island to obtain a $13.8 million loan as presented above as loan receivable for the City, to fund construction of the Parrot Jungle Island project. On November 17, 2011, the City, Miami -Dade County, and HUD amended their May 13, 2001 Assumption of Loan Guarantee Assistance Liability and Pledge Agreement in order to refinance the Parrot Jungle Island project HUD Section 108 Loan under a new note at a lesser interest rate for the they 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 Island 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 Jungle Island, regarding ter alia, (1) the borrowing by Jungle Island of the Parrot Jungle Project HUD Section 108 Loan proceeds from the County and the City, (2) the leasing by Jungle Island of City -owned property for the construction of the Project, (3) City and County payments to HUD for the Parrot Jungle Island 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 Island Project HUD Section 108 Loan Deferred PaymentsThe City and Jungle Island are working on a the deferred payment schedule. The City has recorded an allowance for the full amount of this receivable. 2.Regular Lease Rent PaymentsBegan April 1, 2013, whereby Jungle Island will pay the rent based upon a "Gross Revenues"monthly calculation. 87 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 3.Deferred Lease Rent PaymentsPayments1ue 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. 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 of the loan period, the proceeds from the repayment including interest, if any, are then returned to the program to assist additional low-income families. If the homeowners remain in their homes for the full term of the deferred loan, the loan is forgiven and becomes a grant. A mortgage or a covenant is placed against the property to ensure the repayment of th loan and interest. Given the nature of these loans and historical experience, collection is not assured, consequently they are not 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, 2020, are as follows: Program Loans Outstanding Amount CDBG 47 loans $ 2,152,712 HOME 524 loans 27,610,420 SHIP 266 loans 15,017,289 Other 37 loans 1,876,124 Total 874 loans $ 46,656,545 Multi -Family Re nta l Lo a ns Multi -family rental loan programs are funded by the Community Development Block Grant (CDBG) and HOME Investment Partnership Loan Program (HOME). As of September 30, 2020, there are 105 projects aggregating to $95.2 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 ban. Given the nature of these loans and historical experience, collections are not assured, consequently thel are not recognized in the City's financial statements. 88 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 Economic Development Commercial Loans As of September 30, 2020, there are 5 loans aggregating to $6.8 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 and historical experience, collection is not assured, consequently they are not recognized in the City's financial statements. NOTE 4. — PROPERTY TAXES Property taxes are assessed according to the value determined by the Miami -Dade County Property Appraiser on January`bf each year and are due, with discounts of one to four percent allowed if paid prior to March 1' of the following calendar year. In accordance with Florida Statute 197.122, taxes become an enforceable lien on the assessed property on November 1 each year based upon the asses: value established by the County property appraise as of the prior January 1. Taxes are levied after the millage rate is certified in September of each year. Taxpayers also have the option of paying their taxes in advance in equal quarterly payments based on the prior year's tax assessment with quarterly dscount; varying between 2 percent and 4 percent. All unpaid taxes on real and personal property become delinquent on April 1t and bear interest at 18 percent until a tax sale certificate is sold at auction. The County bills and collects allproperty taxes for the City and sells tax certificates for delinquent taxes. The assessed value of property, as established by the Miami -Dade County Property Appraiser, at Januar` 1, 2019, upon which the 2019-2020 levy was based, was $63.0 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 paymentofprincipal and interest on genera obligation long-term debt) for the year ended September 30, 2020, was $7.5665 per $1,000. The debt service tax rate for the same period was $0.4235 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, 2020. Property taxes that are not considered "available" have been reported as deferre inflows on the governmental funds balance sheet. 89 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 NOTE 5. — CAPITAL ASSETS The following is a summary of changes in capital assets during the year ended September 30, 2020: Primary Government Beginning Balance Governmental Activities: Capital assets, not being depreciated: Land $ 120,473,843 Constnaction in progress 126,641,268 Total Capital Assets, not being depreciated 247,115,111 Depreciable Assets: Buildings 359,531,074 Improvements 317,881,936 Machinery and equipment 281.872,302 Infrastructure 1,438,292,283 Total capital assets being depreciated 2,397,577,595 Less Accumulated Depreciation for: Buildings 150,748,850 Improvements 239,407,911 Machinery and Equipment 217,379,479 Infrastructure 942,908,422 Total accumulated depreciation 1,550,444,662 Total capital assets being depreciated, net 847,132,933 Governmental activities capital assets, net $ 1,094,248,044 Additions/ Retirements/ Transfers In Transfers Out $ 2,826,907 42,200,973 45,027,880 571,420 2,770,233 35,130,950 2,227,474 Ending Balance $ (2,101,059) $ 121,199,691 (4,507,864) 164,334,377 (6,608,923) 285,534,068 (8,688) (8,910,409) 40,700,077 (8,919,097) 8,231,791 15,250,534 23,156,540 33,258,786 (6,806) (7,701,575) 79,897,651 (7,708,381) (39,197,574) (1,210,716) 360,102,494 320,643,481 308,092,843 1,440.519,757 2,429,358,575 158,980,641 254,651,639 232,834,444 976,167,208 1,622,633,932 806,724,643 5,830,306 $ (7,819,639) $ 1,092,258,711 Depreciation expense was charged to governmental functions as follows: Function/Program Activities General Government Planning and Development Community Development Community Redevelpmcnt Areas Public Works Public Safety Public Facilities Parks and Recreation Total depreciation expense Cons truc do n Co mmitme nts Depreciation Expenses s 44,270,901 1,122,795 164,403 1,269,594 7,297,177 15,343,439 3,298,046 7,131,296 79,897,651 As of September 30, 2020, the City had various construction projects in progress that were not completed with remaining balances that totaled approximately $53.1 million. Funding of these projects will be made primarily from proceeds of the bond issues, loans, future tax revenues and grants. 90 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 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, 2020: A summary of the changes in capital assets for DOSP is as follows: Capital assests, not being depreciated: Land Construction in progress Total capital assets, not being depreciated Capital assets being depreciated Building and structures Leasehold improvements Furniture and fixtures Equipment Total capital assests being depreciated Less accumulated depreciation for: Building and structures Leasehold improvements Furniture and fixtures Equipment Total accumulated depreciation Total capital assets being depreciated, net Beginning Balance $ 5,948,011 16,266,643 22,214,654 67,938,285 8,808,574 775,085 6,045,984 83,567,928. 31,405,472 6,970,613 489,475 3,925,641 42,791,201 40, 776,727 Additions/ Transfers In 7,156,771 7,156,771 22,819,190 2,601,837 105,720 2,035,459 27,562,206 1,966,914 2,471,072 64,370 966,990 5,469,346 22,092,860 Retirements/ Transfers Out Ending Balance (10,800) $ (23,024,576) (23,035,376) (17,664) (17,664) (12,618) (12,618) (5,046) 5,937,211 398,838 6,336,049 90,757,475 11,410,411 880,805 8,063,779 11 1,112,470 33,372,386 9,441,685 553,845 4,880,013 48,247,929 62,864,541 DOSP capital assests,net $ 62,991,381 $ 29,249,631 $ (23,040,422) $ 69,200,590 A summary of changes in capital assets for CIP is as follows: Capital assets being depreciated: Furniture and equipment Less accumulated depreciation for: Furniture and equipment CIP capital assests, net Beginning Balance Additions) Transfers In Retirements/ Transfers Out Ending Balance 13,946 $ 7,869 7,525 $ 2,783 - $ 21,471 10,652 6,077 $ 4,742 $ - $ 10,819 91 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 A summary of the changes in capital assets for DDA is as follows: Capital assets being depreciated: Furniture and equipment Less accumulated depreciation for: Furniture and equipment DDA capital assests, net Beginning Additions/ Retirements/ Ending Balance Transfers In Transfers Out Balance $ 766,758 S 25,247 S 13,401 $ 805,406 557,843 63,546 13,401 634,790 208,915 $ (38,299) $ - $ 170,616 A summary of changes in capital assets for BFP is as follows: Beginning Additions/ Retirements/ Ending Balance Transfers In Transfers Out Balance Capital assets, not being depreciated: Land $ 516,129 $ - $ - $ 516,129 Total capital assets, not being depreciated 516,129 - - 516,129 Capital assets, being depreciated: Buildings 2,637,934 - - 2,637,934 Public domain and system infrastructure 8,806,201 169,345 8,975,546 Machinery and equipment 874,456 6,978 - 881,434 Total capital assets being depreciated 12,318,591 176,323 - 12,494,914 Less accumulated depreciation for: Buildings 1,652,066 52,759 - 1,704,825 Public domain and system infrastructure 4,255,252 375,091 - 4,630,343 Machinery and equipment 631,459 46,545 - 678,004 Total accumulated depreciation 6,538,777 474,395 - 7,013,172 Total capital assets being depreciated, net 5,779,814 (298,072) - 5,481,742 BFP capital assets, net $ 6,295,943 $ (298,072) $ - $ 5,997,871 92 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 A summary of changes in capital assets for CGBID is as follows: Beginning Additions/ Retirements/ Ending Balance Transfers In Transfers Out Balance Capital assets being depreciated: Furniture and equipment $ 702,202 43,743 $ 745,945 Less accumulated depreciation for: Furniture and equipment 218,190 69,579 - 287,769 CGBID capital assests, net $ 484,012 $ (25,836) $ 458,176 A summary of changes in capital assets for WBID is as follows: Capital assets being depreciated: Furniture and equipment Less accumulated depreciation for: Furniture and equipment WBID capital assests, net Beginning Additions/ Retirements/ Ending Balance Transfers In Transfers Out Balance $ 217,591 $ 11,400 S 11,078 44,190 $ 228,991 55,268 $ 206,513 $ (32,790) $ $ 173,723 Summary of the discretely presented component units capital assets at September 30, 2020 are a follows: DOSP CIP DDA BFP CGBID IN R1 ❑ Total Capital Assets: Non -depreciable $ 6,336,049 $ - $ - $ 516,129 $ - S - $ 6,852,178 Depreciable, net 62,864,541 10,819 170,616 5,481,742 458,176 173,723 _ 69,159,617 Total $ 69,200,590 $ 10,819 $ 170,616 $ 5,997,871 $ 458,176 $ 173,723 $ 76,011,795 Depreciation expenses were charged to the discretely presented component units as follows: Entity Depreciation Expense DOSP $ 5,469,346 CIP 2,783 DDA 63,546 BFP 474,395 CGBID 69,579 WBID 44,190 Total depreciation expense $ 6,123,839 93 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 NOTE 6. — ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities reported in the governmental funds balance sheet at SeptembE 30, 2020, consisted of the following: Special Obligation Non -Major Other Capital Emergency Bonds Governmental General Projects Impact Fee Services Projects Funds Total Accounts Payables $11,700,093 $10,176,468 $1,308,636 S2,765,996 $463,570 S9,855,924 $36,270,687 Retainage 271,485 3,039,113 662,001 872,293 322,330 1,858,304 7,025,526 Salaries and Benefits 24,313,693 - - - 534,320 24,848,013 Total $ 36,285,271 $ 13,215,581 $ 1,970,637 $ 3,638,289 $ 785,900 $ 12,248,548 $ 68,144,226 NOTE 7. — INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS The balances reflected as due from/due to other funds reported as of September 30,2020 are as follows: Receivable Fund General Fund General Fund General Fund General Fund Payable Fund Amount Other Capital Projects Emergency Services Special Obligation Bonds Projects Non -Major Governmental Funds 16,510,111 19,880,104 14,050,000 1,389,247 Total $ 51,829,462 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 $16,510,112 will be paid with the issuance o debt for the Vehicle Lease to Own Program. The $19,880,104 is mainly attributed to expenditures related to Hurricane Irma and COVID-19 expenditures to be reimbursed through the Public Assistance Grant Program . 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 remaining interfund payable balance of $15,439,247 is mainly attributed to expenditures related to several declaration of intent to issue debt authorized by City Commission. 94 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 Advances From/to Other funds Receivable Fund Payable Fund Amount General Fund 6,999,365 Non -Major General Obligation Bonds Projects $ General Fund Special Obligation Bond Projects 3,766,08 Total $ 10,765,45 The amounts payable to the general fund relate to the City's Declaration of Intent to issue bonds and reimburse the amount advanced for capital expenditures incurred in the Special Obligation and Genera Obligations Bonds Projects funds. None of the balance is scheduled to be collected in the subsequen year. The following is a summary ofinterfund transfers reported for the fiscal year ended September 30, 2020: Transfer In Non -Major Other Capital Emergency Governmental Transfer Out General Projects Services Funds Total General $ $ 15,161,379 $ 5,000,000 $50,558,000 $70,719,379 Other Capital Projects 1,083,000 - 1,083,000 Nonrnajor Governmental Funds 4,208,193 8,349,000 17,082,181 29,639,374 Total $ 5,291,193 $ 23,510,379 $ 5,000,000 $ 67,640,181 $ 101,441,753 Transfers are used to (a) move revenues from the fund that statute or budget requires to collect them 1 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 $70.7 million. This total was comprised of transfers of $15.2 million to the Other Capital Projects fund, $5 million to the Emergency Services fund and $50.6 million to the other Non -Major Governmental funds. The $15.2 million transferred to Other Capital Projects were allocated to various capital improvement projects as follows: $2.4 million of Stormwater Utility Fees collected from Miami -Dade County were transferred for stormwater related capital improvements, $1.2 million from the Building fund to the E- Plan project phase 2, $1 million as a match to FIND grants for Resiliency and Public Works projects, $1 million to contribute to various public facilities' capital projects, $2.2 million are contributions for capital projects for the Fire and Police departments, $2.6 million for Parks department capital improvements, $2 million for capital projects for other departments such as Solid Waste and IT, $1.4 million are marina revenues allocated to cover public facilities capital requirements, $0.7 million for the 40/50 Year recertification citywide and $0.7 million of local option gas tax was transferred for various capital improvements. 95 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 The $5 million transferred from the General fund to the Emergency fund are meant to cover non budgeted expenses related to COVID 19 and other disasters. Finally, the $50.6 million transferred from the General fund to other Non -Major funds consists of several allocations to different programs and to cover the debt service payments of the Special Obligation Bonds ("SOB") fund. The most relevant ones are the following: $2 million for Housing and Community Development programs such as Social Services Gap and Mayor's Elderly Rent Credit, $2.6 million fund balance rollovers for depailuients as described in the City of Miami's Anti Deficiency Act, $1 million for the FIPO stabilization Fund per Miami Code Section 40-301, $3.2 million transferred to citywide festivals and special events and Anti -Poverty Initiative programs, $1.6 million to Police Special Revenue fund as grant match and to cover budget deficits for some programs such as E-911 and COPS. $15.5 million from the Public Service tax proceeds was allocated to various SOB funds, $5.3 is General fund contribution tc applicable SOB debt, $3.5 million from Parking Surcharge and Local Option Fuel tax to Streets' bond, $9.6 million transferred for Vehicle Lease debt service payments, $1.1 million was designated to FDEP Wagner Creek loan payment, $2.2 million allocated to Flex Park Remediation, and $1.9 million allocated to Citywide Radio Communication system. Payments for debt service are an allowable use of these revenue sources. Also included in this fiscal year's transfers are $29.6 million from Non -Major Governmental funds. This total was comprised of $4.2 million to the General fund, $8.3 million to Other Capital Projects and $17 million to Non -Major Governmental funds. The $8.3 million to Other Capital Projects includes: $4.1 million contribution from the Marlins Parking to capital projects for Public Facilities, $2.4 million from Lane Closure to city-wide capital projects, $1 million is a Special Revenue contribution to Parks capital improvements. The $4.2 million to the General fund from Non -Major Governmental fund consists primarily of $3.3 million of Tax Increment Revenues from SEOPW CRA pursuant to Section 5(e) of the Global Agreement and $0.8 million from the SEOPW CRA to reimburse the City for the Sunshine Loan payment related to Gibson Park. The most relevant transactions within the $17 million transferred to other Non -Major Governmental funds are: $7.3 million from the OMNI and SEOPW CRAB Special Revenue funds to the CRA Debt Service funds to cover the CRAB debt service payments, $3.5 million from the Transportation and Transit Special Revenue fund to the Transportation and Transit Capital fund, $970,000 Transportation and Transit transfers: for Streets Bond debt service and $4.2 million of OMNI CRA contribution to the SOB Debt Service Fund to be used for debt service payments on the Port of Miami Tunnel Series 2012. Finally, there were transfers from the Other Capital Projects fund to the General fund of $1 million which was de -appropriated and transferred to the General fund to fund Covid-19 related expenditures. 96 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 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, 2020: Primary Government General Obligation Bonds - Direct Placement Other Direct Placements Special Obligation Revenue Bonds, Loans and Leases Bond Premium (Discounts) Total Bonds, Loans and Leases Other Liabilities: Compensated Absences Claims Payable and other liabilities Other Post Employement Benefits Net Pension Liability Total Other Liabilities Total Governmental Activities Long -Term Liabilities Beginning Balance $ 135,315,000 178,578,991 288,020,000 601,913,991 9,128,227 611,042,218 64,952,997 242,389,475 863,626,604 967,624,806 2,138,593,882 Additions 112,831,279 112,831,279 112,831,279 29,990,442 64,097,568 4,322,827 26,519,841 124,930,678 Reduction $ (20,075,000) (14,504,273) (131,760,000) (166,339,273) (2,583,154) (168,922,427) (20,630,610) (71,436,078) (92,066,688) Ending Balance $ 115,240,000 276,905,997 156,260,000 548,405,997 6,545,073 554,951,070 74,312,829 235,050,965 867,949,431 994,144,647 2,171,457,872 Due within One Year $ 20,895,000 19,035,920 16,660,000 56,590,920 56,590,920 5,846,045 42,323,710 48,169,755 $ 2,749,636,100 $ 237,761,957 $ (260,989,115) $ 2,726,408,942 $ 104,760,675 Claims payables, compensated absences, net pension liability, and other post -employment benefits at generally liquidated by the General Fund. Claims payable balance of $235.1 million includes an accrual of $2.0 million for pollution remediation obligations, which are obligations to address the current or potential detrimental effects of existing pollution and $49.9 million for potential legal claims as discussed in Note 12. Claims payables of $183.2 million reported in connection with the City's self-insurance program is discussed in Note 9. 97 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 Bonds, Loans and Leases Outstanding The following presents the City's bonds, loans and leases outstanding at September 30, 2020: DESCRIPTION General Obligation Bonds: General Obligation Refunding Bond Series 2015 General Obligation Refunding Bond Series 2017 Total General Obligation Bonds Special Obligation and Revenue Bonds, Loans and L Special Obligation Non -Ad Valorem Revenue Series 1995 CRA SEOPW Tax Increment Revenue Bonds Series 2014A-1 Special Obligation Refunding Bonds Series 201 1-A Special Obligation Refunding Bonds Series 2018A Taxable Special Obligation Refunding Bonds Series 2018B Taxable Special Obligation Revenue Bonds Series 2018C Special Obligation Non -Ad Valorem Refunding 2012 Total Special Obligation Bonds, Revenue Bonds, Loans and Leases Other Driect Placements: Special Obligation Non -Ad Valorem Revenue Refunding Note, Taxable Series 2020 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 OMNI Tax Increment Revenue Bonds Series 2018A Taxable Special Obligation Parking Revenue Refunding Note Series 2019 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 Vehicle Replacement Program Series 2020 Dell Financial Services Lease 2018 P25 Citywide Radio Equipment Lease State Revolving Fund Loan Total Other Direct Placements Total Bonds, Loans and Leases Purpose of Issue Maturity Date Amount Issued Outstanding Balance Interest Rate Range Refunding Refunding eases: Pension Redevelopment Refunding Refunding Refunding Refunding Refunding/Port Tunnel Refunding/Port Tunnel 1/1/2028 $ 57,240,000 $ 50,080,000 1/1/2029 114,380,000 65,160,000 171,620,000 115,240,000 12/1/2020 72,000,000 3,910,000 3/1/2030 50,000,000 35,960,000 2/1/2031 70,645,000 3,890,000 1/1/2037 57,405,000 55,385,000 1/1/2039 42,620,000 41,590,000 1/1/2039 7,455,000 7,215,000 3/1/2030 44,725,000 8,310,000 344,850,000 156,260,000 2.640% 2.170% 7.200% 5.000% 4.794% 5.000% 3.558%-4.808% 3.836%-4.808% 5.000% 3/1/2030 28,035,000 28,035,000 2.11% Park Improvements 1/1/2032 Refunding Refunding Refunding Refunding Redevelopment Refunding Redevelopment Redevelopment Vehicle Lease Vehicle Lease Vehicle Lease Vehicle Lease Equipment Lease Radio System Lease Wagner Creek 27,160,000 22,535,000 2.560% 7/1/2026 18,049,380 6,204,947 3.280% 2/1/2031 59,310,000 56,430,000 2.780% 12/1/2025 7,180,000 6,925,000 3.150% 7/1/2027 16,555,000 15,915,000 3.750% 9/1/2029 10,000,000 8,060,000 3.250% 1/1/2039 75,540,000 74,850,000 4.20% 9/ 1 /2029 15,000,000 12,855,000 4.490% None 1,708,864 1,708,864 0.000% 1/1/2021 10,644,628 2,156,777 1.6765% 1/1/2022 10,054,922 4,110,417 2.1856% 1/1/2023 11,270,011 6,853,019 3.1032% 1/1/2025 9,256,279 9,256,279 1.167% 6/1/2022 373,938 152,878 4.8810% 1/1/2024 12,100,000 7,112,616 2.0590% TBD 13,745, I99 13,745,199 0.000% 325,983,221 276,905,996 $ 842,453,221 $ 548,405,997 98 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 Annual Debt Service Requirements to Maturity At September 30, 2020, the annual debt service requirements of the debt is listed below: Year Ended September 30, 2021 2022 2023 2024 2025 2026-2030 2031-2035 2036-2040 Total Bonds and Notes - Direct Placement Principal Interest $ 39,925,921 $ 10,684,301 44,951,627 9,707,721 28,459,799 8,793,230 32,580,601 8,006,139 31,518,714 7,181,965 137,319,760 23,383,856 48,530,711 10, 470, 544 28,858,864 2,444,190 for all bonds, loans and leases, Special Obligation, Revenue Bonds, Loans and Leases Principal Interest $ 16,660,000 9,295,000 9,745,000 7,170,000 7,525,000 44,405,000 30,375,000 31,085,000 $ 7,236,251 6,566,345 6,107,444 5,700,234 5,347,044 20,717,141 11,431,138 3,135,036 $ 392,145,997 $ 80,671,946 $ 156,260,000 $ 66,240,633 Long -Term Debt Issued Total over the lii Principal Interest $ 56,585,921 54,246,627 38,204,799 39,750,601 39,043,714 181,724,760 78,905,711 59,943,864 $ 17,920,552 16,274,066 14,900,674 13,706,373 12,529,009 44,100,997 21,901,682 5,579,226 $ 548,405,997 $ 146,912,579 The following is a summary of debt issued during the fiscal year September30, 2020: o $75,540,000 Taxable Special Obligation Parking Refunding Revenue Note Series 2019 (Marlins Project) — On October 18, 2019, the City issued $75,540,000 Taxable Special Obligation Parking Revenue Refunding Note Series 2019 (Marlins Stadium Parking Facilities Project) with an interest rate of 4.20%. The proceeds along with available City cash of $12,589,099, were used to (i) redeem the outstanding principal amount of Special Obligation Tax - Exempt Revenue Bonds 2010A of $84,540,000, which had interest rates ranging from 5.00% to 5.250% and (ii) pay the cost of issuance of the Series 2019 Bonds. The reacquisition price exceeded the net carrying amount of the old debt by $3,778,431. This amount is reported as a deferred outflow of resources and amortized over the remaining life of the refunding debt, which is the same remaining life of the refunded debt. The refunding reduced the total debt service payments by $29,305,903 and to obtain an economic gain (difference between the present value, of the debt service payments on the old and new debt minus the cash contributed) of $6,984,373. o $28,035,000 Special Obligation Non -Ad Valorem Revenue Refunding Note, Taxable Series 2020 (Port of Nfiami Tunnel Project) —On July 17, 2020, the City issued $28,035,000 Special Obligation Non -Ad Valorem Revenue Refunding Note, Taxable Series 2020 (Port of Miami Tunnel Project) with an interest rate of 2.11%. The proceeds along with available City cash of $546,375 were used to (i) advance refund a portion of the Special Obligation Non -Ad Valorem Series 2012 Bonds of $24,855,000, which had an interest rate of 5% and (ii) pay the cost of issuance of the Series 2020 Bonds. As a result, a portion of Series 2012 Bonds are considerec defeased and the liability has been removed from the statement of net position. The reacquisition price exceeded the net carrying amount of the old debt by $1,452,804. This amount is reported as a deferred outflow of resources and amortized over the remaining life of the refunding debt, which is the same remaining life of the refunded debt. The refunding reduced its total debts service payments by $1,964,881 and to obtain an economic gain (difference between the present values a the debt service payments on the old and new debt minus the cash contributed) of$1,254,652. 99 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 o 9,256,279 Vehicle Replacement Program Series 202mn April 15, 2020, the City obtained a $9,256,279 Lease from Santander Bank, N.A. under a Master Lease Purchase Agreement. Thf lease was issued with an interest rate of 1.167% and maturity date of January 1, 2025. The purpose of the lease is to purchase police and fleet vehicles and to pay financing costs. At the en( of the lease, the City will own the vehicles outright; the City is not pledging any revenue as security for the lease. The vehicles themselves will collateralize the lease Terms Specified in Debt Agreements The City's total outstanding bonds related to public offerings are $156,260,000. An event of default is a failure to make a payment of principal or interest due on the bond. The following bonds have insurance to cover their respective payments, in an event of default o Special Obligation Non Ad Valorem Revenue Series 1995 o Special Obligation Refunding Bonds Series 2018A o Taxable Special Obligation Refunding Bonds Series 2018E o Taxable Special Obligation Revenue Bonds Series 2018C o Special Obligation Refunding Bonds Series 2011-A The following bonds do not have insurance. In the event of default, the owners of not less than 25% of the aggregate principal amount of the bonds outstanding will appoint a default trustee for the benefit of the holders of all the bonds then outstanding. The default trustee will protect and enforce the rights of the bondholders under the laws of the State of Florida. o Special Obligation Non Ad Valorem Refunding Series 2012 o CRA SEOPW Tax Increment Revenue Bonds Series 2014A-1 The City's total outstanding notes from direct placements related to governmental activities are $392,145,997. They are listed below with their events of default information. o General Obligation Refunding Bond Series 20Afi-event of default is a failure to make a payment of principal, premium if any, or interest due on the bond. In the event of default, the bond shall automatically bear interest at the default rate of 5% per annum or, after the occurrence of a determination of taxability, a rate of 6% per annum. o General Obligation Refunding Bonds Series 20A 1-event of default is a failure to make a payment of principal or interest due on the bond. In the event of default, DNT Asset Trust may declare the bond to be immediately due and payable. In addition, any amounts due on the bond which shall remain unpaid past the scheduled payment dates shall bear interest at the lesser of the default rate, calculated as the base rate of 2.17% plus 4% or the maximum rate permitted by law of 18% per annum simple interest (Florida Statutes 687.02(1), until all amounts then due under the bonds are paid in full. o Taxable Special Obligation Parking Revenue Refunding Note Series 2019 - (Marlins Stadium Parking Facilities Project)An event of default is a failure to make a payment of principal or interest due on the note within five (5) days after the due date. Upon the occurrence and continuation of an event of default any interest on the note which shall remain unpaid past the 100 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 scheduled payment dates, shall bear interest at the default rate equal to the interest rate plus 2.00° per annum. o Special Obligation Non Ad Valorem Revenue Refunding Note, Taxable Series 2020 (Port of Miami Tunnel Project) - An event of default is a failure to make a payment of principal or interest due on the bondUpon the occurrence and continuation of an event of default, interest on the Note shall automatically bear interest at the default rate of the lesser ofthe fixed rate plus 4% per annum or the maximum rate permitted by law of 18% per annum simple interest (Florida Statutes 687.02(01). o Special Obligation Refunding Bonds Series 20i1 event of default is a failure to make a payment of principal or interest due on the bonds. In the event of default, the interest on the bonds shall automatically bear the interest at the default rate, which is the lesser ofthe prime rate plus 3% per annum or the maximum rate permitted by law of 18% per annum simple interest (Florida Statutes 687.01(1). o Vehicle Replacement Program (2016-202Ih-event of default is a failure to pay any rental payment for 15 days after such payment is due. In the event of default, Santander Bank (the Bank) may declare all rental payments and other amounts payable by the City thereunder to the end of the then current budget year to be immediately due and payable. In addition, the Bank may require that the City, at the City's expense, redeliver, any or all the equipment to a location specified by the Bank. o Special Obligation Bonds Series 20-11in event of default is a failure to pay any payment of principal or interest on the bond within 3 days of the date due. In the event of default, the interest rate shall immediately and automatically become the default rate of 7% per annum. o Special Obligation Refunding Notes Series 20ld event of default is a failure to make payment of principal or interest due on the Note. In the event of default, interest on the Note shall automatically bear the interest at the default rate, which is the lesser of the prime rate plus 4% per annum or the maximum rate permitted by law of 18% per annum simple interest (Florida Statutes 687.02(1). o Special Obligation Refunding Note Pension Series 20417e-vent of default is a failure to make payment of principal or interest due on the note. In the event of default, any interest past due on the note which shall remain unpaid past the scheduled payment date, shall bear interest at the default rate of the lesser of the prime rate of 3.25% as of Septentba020, plus 3% per annum or the maximum permitted by law of 18% per annum simple interest (Florida Statutes 687.02(1), until all amounts then due under the note are paid in full. o Special Obligation Refunding Note Garage Series 20Vevent of default is a failure to make payment of principal or interest due on the Note after 5 days after the due date. In the event of default, any interest on the note which shall remain unpaid past the scheduled payment dates, sha bear the interest at the default rate, calculated as the interest rate plus 2%, until all amounts the du under the Note are paid in full. o CRA Omni Tax Increment Revenue Bonds Series 2018A & 201114Bvent of default is a failure to make payment of principal or interest due on the due date. In the event of default, the default rate shall be calculated at 6.75% per annum. 101 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 o Dell Financial Services Lease 201 An event of default is a failure to pay any rent or other amounts payable within 30 days after the date that such payment is due. In the event of default, the City will return any and all such products in accordance with the agreement and pay costs and expenses arising or incurred by Dell with or related to the repossession, transportation, refurbishing, storage, and disposition of any or all products. o P25 Citywide Radio Equipment Lease - An event of default is a failure to pay, within 10 days following the due date thereof, any rental payments or other amount required to be paid to Signature Public Funding. In the event of default, Signature Public Funding may accelerate all payments or the prepayment price under the lease, but solely with respect to legally available non - ad valorem revenues budgeted and appropriated for any lease. Also, Signature Public Funding shall have the right to resume interest thereof at the default rate of the lesser of 12% per annum, o the maximum rate permitted by law of 18% per annum simple interest (Florida Statutes 687.02(1). o State Revolving Loan Wagner CreeAh -event of default is a failure to make any monthly loan deposit or to make an installment of the semiannual loan payment when it is due and such failure shall continue for a period of 30 days. In the event of default, the Depaitrnent of Environmental Protection (the Department) may impose a penalty in an amount not to exceed an interest rate of 18% per annum on the amount due in addition to changing the cost to handle and process the deb Also, the Depatttuent may accelerate the repayment schedule or increase the financing rate on the unpaid principal balance of the loan to as much as 1.667 times the financing rate. De bt Autho riz e d but Unis s ue d As of September 30, 2020, the City has authorized but not issued the following debt: On July 9, 2015, the City adopted resolution #15-0304 approving a design and construction loan to the City for an amount not to exceed $22,413,800 from the State of Florida Depaittuent of Environmental Protection Clean Water State Revolving Fund Program for the Wagner Creek Seybold Canal Project. As of September 30, 2020, the City has $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 General Fund from the proceeds of such special purpose improvement bonds for funds advanced by the General Fund 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 SEOPW CRA and the South Florida Regional Transportation Authority. On December 12, 2018, the City of Miami Commission approved $58 million of the $400 million Miami Forever Bond voted by residents in November 2017. The $58 million will fund the first set of Miami Forever Bond projects. The City of Miami will use the proceeds as follows: $10.3 million toward fighting sea level rise, including a redesign of Brickell Bay Drive and the installation of 50 new one-way valves; 102 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 $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. On July 26, 2018, the 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 portion of the tax-exempt Special Obligation Bond proceeds to reimburse the City for funds advanced by the City for original expenditures incurred and to be incurred with respect to the installation of underground transmission lines. On June 27, 2019, the City adopted resolution #19-0256 approving the issuance of its tax-exempt an( taxable special obligation bonds or any other financing mechanism advantageous to the City in a total maximum aggregate principal amount not to exceed $150 million including costs of issuance. The proceeds are for the purposes of financing the costs of the acquisition of real property at 230 Southwes 3rd Street, Miami, Florida (New Site), the development, construction, and installations for the Project, and for certain capital improvements infrastructure projects related thereto to be located at the New Site. Defeasance of Long -Term Debt The City has defeased certain debt with advance refundings. The proceeds of the new bonds were place in an irrevocable trust to provide for all future debt services payments on the defeased debt series. A September 30, 2020, the following outstanding debt are considered defeased: Type SOB Refunding Bonds SOB Refunding Bonds Total Defeased Capital Lease Obligations Date of Series Defeasance Call Date 2011A 2012 11/28/2017 2/1/2021 7/17/2020 3/1/2023 Principal Amount Principal Defeased Outstanding $ 52,975,000 $ 52,975,000 24,855,000 24,855,000 $ 77,830,000 $ 77,830,000 The City has entered into four agreements as lessee for financing the acquisition of police and fleet vehicles in the amount of $41,225,840. 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 $41.2 million and $18.7 million respectively. The City 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 Departmentin 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, $9.8 million of assets were acquired to be prepared for its intended use; therefore, there i 103 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 no depreciation to report. Additionally, at year end there was $2.2 million of lease proceeds being held in escrow. The City has entered into an agreement as lessee for financing the acquisition of Technology Equipmen in the amount of $373,938 as part of the ongoing efforts to upgrade and enhance backup data servers fi the City. 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 year end the cost and accumulated depreciation of assets under lease were $373,938 and $174,51 respectively. The following is a schedule showing the future minimum lease payments due under capital lease by year; and the present value of the minimum lease payments due as of September 30, 2020: YearEnding September30, 2021 2022 2023 2024 2025 Total minimum lease payments Less: amount representing interest Present value of minimum lease payments Synopsis of Bond Covenants Technology Equipment $ 82,080 82,080 Police and Fleet Vehicles $ 8,623,909 6,391,030 4,266,081 1,910,490 1,910,490 Network System $ 1,861,516 $ 1,861,516 1,861,516 1,861,516 Total 10,567,50f 8,334,627 6,127,597 3,772,006 1,910,490 164,160 (11,282) $ 152,878 23,102,000 (725,507) $ 22,376,493 7,446,064 (333,448) $ 7,112,616 30,712,225 (1,070,238) $ 29,641,98i 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, 2020, the statutory debt limitation of assessed non-exemp property value for the City amounted to $9.2 billion providing a debt margin of $9.1 billion after consideration of $115.2 million of general obligation bonds outstanding at September 30, 2020 and adjusted for the fund balance of$10.5 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, 2020, the City had approximately $10.: million available in the sinking fund to meet this requirement. Principal and interest to be paid in subsequent years totals $273.1 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 proceed, from the bonds were used for the improvement of streets, sidewalks and drainage within the City. Those bonds are payable solely from the pledged revenues listed above through January 1, 2039. Principal an 104 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 Interest paid for the current year were $3.29 and 5.07 million respectively. The current year pledged revenues were (i) $15.5 million (ii) $6.7 million and (iii) $3.6 million respectively for the 2018 A, B, and C Bonds. Principal and interest to be paid in subsequent years totals $82.2 million on the Series 201V bonds, $66.5 million on the Series 2018B bonds, and $10.9 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 Major League Baseball Home Games at the Miami Marlins Baseball Stadium, along with related parking surcharge revenues to repay $75.54 million Taxable Specia Parking Revenue Refunding Note Series 2019, and $16.6 Special Obligation Parking Refunding, Series 2018. The proceeds from the bonds were used for the construction of the parking facilities for the Miami Marlins Baseball Stadium. The bonds are payable solely from the pledged revenues listed above throug the year 2039. Principal and interest to be paid in subsequent years totals $118.4 million on the Serie 2019 bonds and $18.4 million on the Series 2018 bonds. The total pledge revenue collected during thf year was approximately $4.8 million and total principal and interest payments during the year were $ 1.01 million and $2.83 million. 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 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, i exchange for the City's irrevocable agreement not to exercise its option of redemption with respect to the 2015 and 2020 maturities. HEALTH FACILITY AUTHORITY — 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 considers HFA to be a discretely presented component unit however HFA had no asset, liabilities, net position or activities to report during fiscal year 2020. Proceeds from these bond issues were used to finance construction of buildings and parkin facilities; land acquisitions; equipment purchases including beds and other medical apparatus; renovatioi of existing facilities; and engineering costs for various not for profit entities. Debt obligations issued under the purview of the HFA do not constitute an indebtedness, liability or pledge of the faith or credit of the HFA or the City. The HFA does not issue stand-alone audited financial statements. At September 30, 2020, the HFA conduit debt activity and outstanding balance totaled $40.9 million. Debt Issue Beginning Balance Series 2017 Principal Payment Outstanding Balance $ 41,835,000 $ 940,000 $ 40,895,000 The scheduled debt service payments were made by Miami Jewish Home and the payments are current. 105 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 Discretely Presented Component Units Long -Term Debt Department of Off -Street Parking (DOSP) The changes in DOSP's long-term debtfor2020 are as follows (in thousands): Beginning Ending Due Within Balance Additions Reductions Balance One Year Bonds Payable S 61,835 $ 52,180 $ 61,835 5 52,180 5 1,300 Premium (discount) (594) 8,154 713 6,847 - Compensated absences 947 32 - 979 465 Net Pension Liability - 513 513 - Other post -employment benefit liability (OPEB) 498 - 120 378 Loan from primary government 900 150 750 150 $ 63,586 $ 60,879 $ 62,818 S 61,647 $ 1,915 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, 2020 is $0.8 million. On October 24, 2019, the City Commission adopted ordinance 13866 authorizing DOSP to issue up to $60.0 million in revenue bonds for the purpose of refunding then outstanding Series 2009 bonds. On December 12, 2019, the Authority issued $52.2 million of tax-exempt, fixed-rate revenue refunding bonds ("Series 2019 Refunding Bonds'). The proceeds of these bonds were used to: (1) refund on current basis the Series 2009 bonds (2) pay for costs of issuance on the Series 2019 Refunding bond including the payment of the premium for a municipal bond insurance policy securing the Series 2019 Refunding Bonds maturing on October 1 of the years 2027 through 2039. The Series 2019 Refunding Bonds are secured by the net revenues of the parking facilities and, accordingly, are included in the accounts of DOSP. The advance refunding reduced total debt service payments by $17.0 million and resulted in an economic gain of $11.9 million (difference between present values of the debt service payments on the old versus the new debt). The outstanding balance at year end is $52.2 million. The following summarizes the debt service to maturity of outstanding DOSP debtat September 30, 2020: Year Ending Bonds Loan September 30, Principal Interest Total Principal 2021 $ 1,300,000 $ 2,302,400 $ 3,602,400 $ 150,000 2022 1,695,000 2,234,025 3,929,025 150,000 2023 1,785,000 2,147,025 3,932,025 150,000 2024 1,870,000 2,055,650 3,925,650 150,000 2025 1,970,000 1,959,650 3,929,650 150,000 2026-2030 11,405,000 8,181,375 19,586,375 - 2031-2035 14,460,000 5,090,625 19,550,625 2036-2040 17,695,000 1,824,700 19,519,700 - 2041-2045 - Total $ 52,180,000 S 25.795.450 $ 77.975.450 $ 750.000 Range of Rates 4.25%-5.66% 106 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 NOTE 9. — RIS K 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 abseil( 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 on all areas of liability including workers' compensation, general liability (GL), automotive liability (AL), police professional liability, public officials' liability, and employment practices liability. The City also purchases excess insurance coverage to limit catastrophic losses associated with its liabilit exposures. The excess liability insurance program provides for $10 million in total limits for GL and AL lines. The excess insurance program currently has a self -insured retention of $1,000,000 per occurrenc for workers' compensation and $1,000,000 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 carry a $1 million limit per occurrence on an aggregate basis. 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 approximately $558 million. Included in this amount is $25 million for named windstorm and $30 million on flood coverage. With the exception of earthquake, flood and named windstorm, the all -other -perils deductible is $50,000 per occurrence. In regard to the named windstorm, flood, and earthquake exposures, the deductible is 5 percent of the value of the affected location subject to a minimum of $250,000 for any one occurrence and $10 million aggregate loss. The City also maintains standalone property policy on the Marlins Stadium Parking Garages providing for $25 million in total limits for windstorm, flood and earthquake, and $81.9 million for all other perils. The Marlins Stadium Parking Garages have a $25,000 all other perils deductible, and a deductible of 5 percent of total insured values at time of loss, with a $100,000 minimum per location for named windstorm and flood perils. The payment of losses within the self -insured retention level are made from the General Fund. Claims an adjusted by a third party administrator. Claims expenditures and liabilities are reported in the statement of net position when it is probable that a loss has occurred and the amount of that loss can be reasonab estimated. The City provides group health plan for its active employees, retirees, and their dependents through fully self -funded health insurance program. The City is currently contributing approximately 87 percent, while the employees/retirees are contributing 13 percent of the calculated health insurance premium. Thf 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 purchases specific stop loss coverage for claims in excess of $250,000. There is significant uncertainty regarding the impact of COVID-19 and any potential legislation, executive orders, or stay -at home orders on claims. As such, no adjustments were made to the curre; year estimates for COVID-19. The actual emerged experience may differ significantly from estimates projected for the year ended. 107 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 At September 30, 2020, the total estimated undiscounted liability is recorded in the government -wide financial statements. Changes in the claims and other litigation related liability amounts for 2020 and 2019 were as follows: Fiscal Year Beginning of Ended Fiscal Year September 30, Liability 2020 $ 242,389,475 2019 281,366,573 Current Year Claims and Changes in estimates $ 64,097,568 62,123,268 Claim Payments $ (71,436,078) (101,100,366) Balance at Fiscal Year End $ 235,050,965 242,389,475 Settled claims have not exceeded the City's aggregate excess coverage in force for the last three years. NOTE 10. — PENSIONS The City sponsors separate single -employer, defined benefit pension plans under the administration an management of separate Boards of Trustees: the City of Miami Fire Fighters and Police Officers Retirement Trust (FIPO), the City of Miami General Employees and Sanitation Employees Retirement Trust (GESE) and Other Managed Trusts, and the City of Miami Elected Officers' Retirement Trust (EORT). Thereafter the Plans. 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 membe contributions are recognized in the period in which the contributions are due. Employer contributions are recognized when due. Benefits and refunds are recognized when due and payable in accordance with tl terms of the Plans. FIREFIGHTERS 'AND POLICE OFFICERS ' RETIREMENT TRUST The audited financial statements for the plan can be obtained from the FIPO Trust Fund, 18' 5 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. 108 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 As of September 30, 2020, membership in the FIPO consisted of the following: Members Retirees and beneficiaries currently receiving benefits 2,195 Inactive plan members entitled but not yet receiving benefits 23 Active plan members- vested 900 Active plan members- non -vested 1,103 Total 4,221 Pension Benefits The City Code establishes the FIPO benefit terms and contribution requirements, and any amendments there to would require approval by 3/5th of the City commission. 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 code shall be determined as follows: Plan A - For members employed on September 30, 2010, who as of that date have attained age 50 witi 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 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 members hired on or after October 1, 2010 shall have to meet the 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 '/2 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 P') and a new COLA account ("COLA If') 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 109 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 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, 2020 approximately $6.9 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 Code. Deferred Retirement Option I c(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 DROI 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 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. 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, 2020 amounted to $151.4 million and is recorded with the plan investments on the Statements of Fiduciary Net Position. An individual account is created for each participant. A series of investment vehicles, as established by FIPO's Board of Trustees, are made available to DROP participants to choose from. Any losses incurred on account of the option selected by the participant will not be made up by the City or the FIPO Trust, and will be borne by the participant only. All interest will be credited to the member's account. Upon termination of employment, a participant may receive payment from the DROP account in a lump sum distribution; or periodic payments. A participant may elect to rollover the balance to another qualified retirement plan, individual retirement account, an IRC Section 457 Plan, or an annuity. A participant may defer payment until the latest date authorized by Section 401(a) (9) of the IRC. 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. DROP pension payments for the year ended September 30, 2020 amounted to $12.9 million. 110 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 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). BACDROP pension payments for the year ended September 30, 2020 amounted to $2.8 million. Contributions and Funding Policies Police officer members of FIPO are required to contribute 10 percent of their salary on a bi-weekly basis (7 percent prior to October 1, 2012). Firefighter members are also required to contribute 10 percent (9 percent prior to October 1, 2009) of their salary on a bi-weekly basis. The City is required to contribute such amounts annually as necessary to maintain the actuarial soundness of FIPO and to provide 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) of the City Code. Contributions to the FIPO COLA accounts are authorized pursuant to Section 40.204 of the City Code. The City's contributions to FIPO provide for non - investment expenses and normal costs. The yield on investments on FIPO serves to reduce future contributions that would otherwise be required to provide for the defined level of benefits under the F IP O Trust. The payroll for employees covered by FIPO for the year ended September 30, 2020 was approximately $168.1 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, 2020, the average active employee contribution rate was 10 percent of annual pay, and the City's average contribution rate was 40 percent of annual covered payroll. Employer contributions for the fiscal year 2020 totaled $67.6 million. Net Pension Liability The components of the net pension liability for FIPO at September 30, 2020, are as follows: FIPO Total pension liability $ 2,227,232,505 Plan fiduciary net position (1,566,130,574) Net pension liability $ 661,101,931 Plan feduciary net position as a percentage of total pension liability 70.3% Actuarial Assumptions The total pension liability was based on an October 1, 2019 actuarial valuation rolled forward to the measurement date of September 30, 2020, using the following assumptions, applied to all periods included in the measurement: 111 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 Actuarial Assumptions Measurement Date Inflation Actuarial cost method Projected salary increases Cost -of -living adjustments Assumed rate of return on investments September 30, 2020 2.60% Entry age cost method 3.25% - 9.75%, average, including inflation Amount varies annually with the adjustment on January 7.34% compounded annually, net of pension plan investment expense including inflation. The actuarial assumptions used in the October 1, 2019 valuations were based on the results of an actuarial experience study for the period October 1, 2014 to September 30, 2017. The inflation rate assumption changed from the assumption of 3.25% used in the prior actuarial valuation. The mortality rate assumption were changed in accordance with the Florida Retirement System Valuation report dated December 2019, which used the Florida Retirement System special risk mortality scale BB generational for allhealthy retirees. Mortality rates are calculated with the Florida Retirement System Pub-2010 Generational scale MP-2018 generationally for allhealthy retirees. The long-term expected rate of return on pension plan investments was determined in accordance with Actuarial Standard of Practice (ASOP) No.257glection of Economic Assumptions for measuring Pension Obligation. ASOP No.27 provides guidance on the selection of an appropriate assumed investment rate of return. Consideration was given to expected future real rates of return (expected returns, net of pension Plan investment expense and inflation) for each major asset class as well as historical investment data and Plan performance. Best estimates of real rates of return for each major asset class included in the pensions Plan's targe asset allocation as of September 30, 2020 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%4 7.00% Real rates of return are net of the long-term inflation assumption of 2.60% for 2020. 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 112 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 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 There have been no changes to plan provisions since the last valuation. Changes in Net Pension Liability The following table shows the FIPO changes in net pension liability based on the actuarial information provided to the City at September 30, 2020: Balance at 10/01/2019 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 09/30/2020 FIPO Increase (Decrease) Total Pension Liability (a) $ 2,229,656,108 33,703,733 160,096,512 4,270,406 46,795,554 (82,872,814) (164,416,994) (2,423,603) Plan Fiduciary Net Position (b) $ 1,561,208,562 67,564,414 15,820,796 88,184,264 (164,416,994) (2,230,468) 4,922,012 $ 2,227,232,505 $ 1,566,130,574 Net Pension Liability (a) - (b) 668,447,546 33,703,733 160,096,512 4,270,406 46,795,554 (82,872,814) (67,564,414) (15,820,796) (88,184,264) 2,230,468 7,345,615 $ 661,101,931 113 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following table illustrates the impact of interest rate sensitivity on the FIPO net pension liability as of September 30, 2020: Net Pension Liability Current Discount 1% Decrease Rate 1% Increase (6.34%) (7.34%) (8.34%) $ 891,027,538 $ 661,101,931 $ 466,079,685 Pension Expense and Deferred Outflows/Inflows of Resources Related to Pension For the year ended September 30, 2020, the City recognized pension expense of $94 million. At September 30, 2020 the City reported deferred outflows of resources and deferred inflows of resources from the following sources: Differences between expected and actual experience Changes of assumptions Net difference between projected and actual earnings on pension plan investments Total FIPO Deferred Outflow of Deferred Inflows of Resources Resources 84,808,321 $ 18,253,854 39,502,464 74,622,982 142,564,639 $ 74,622,982 Amounts reported as deferred outflows of resources and deferred inflows of resources related to pension: will be recognized in pension expense as follows: Yearanding September3�1: 2021 $21,769,509 2022 27,386,709 2023 16,379,108 2024 8,856,528 2025 (1,296,301) Thereafter (5,153,896) $ 67,941,657 114 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 GENERALEMPLOYEES AND SANITATION EMPLOYEES RETIREMENT TRUST (GESE Tnist) The Board of Trustees of the GESE Trust administers four defined benefit pension plans: (a) GESE Trust; (b) an Excess Benefit Plan for the City of Miami (the "EBP"); (c) General Employees and Sanitation Employees Retirement Trust Staff Pension Plan (the "Staff Trust"), and (d) General Employees and Sanitation Employees Retirement Trust Staff Excess Benefit Plan (the "Staff Excess Benefit Plan"). Each Plan's assets may be used only for the payment of benefits to the members of that Plan, in accordance with the terms of the Plan. The City code stablishes the GESE Plans benefits terms and contribution requirements, and any amendments thereto would require approvMdfyth3d5City commission. 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. 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 firefighters, police officers and executive level employees hired after October 1, 2009. As of September 30, 2019, membership in the GESE consisted ofthe following: Members Retirees and beneficiaries currently receiving benefits 1,920 Terminated members entitled to benefits but not yet receiving benefits 277 Active employees 1,972 Total 4,169 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 agi 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 of 80). Retirement benefits are generally based on 3 percent of the average final compensation multiplied by years of creditable service, which is paid annually in monthly installments. For service after September 30, 2010, for members not eligible to retire as of that date, benefits are based on 2.25 percent of averag( 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 115 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 not exceed $80,000. Any member who has accrued a benefit in excess of the maximum benefit as of September 30, 2012 will retain that benefit but will not accrue any additional benefit. Members eligible to receive accumulated sick and vacation leave from the City are able to transfer the amount to an eligible retirement plan. The GESE Trust facilitates the transfer of accumulated sick and vacation leave to any eligible retirement plan and is pursuant to Section 40-266 of the City Code. Effective October 1, 2018 the following positions shall be eligible for participation in the Plan or the Trust Fund: City Attorney, Chief Deputy City Attorney, Deputy City Attorney, and Assistant City Attorney; and persons employed in these positions on or after June 1, 2019 may elect to participate in either plan. For members who retire on or after October 1, 2018, except members of AFSCME Local 871 bargaining unit, compensation shall include a retroactive 5% salary increase for the member's highest one year salary. For non -bargaining members hired before October 1, 2010 who retire on or after September 30, 2020, retirement eligibility at age 55 with 10 years of service or Rule of 70 is restored. The benefit multiplier is restored to 3% per year of service effective October 1, 2018. For members who retire on or after October 1, 2018, the average final compensation is the highest 1 year of salary. Cost of Living Adjustmdi(COLA) Effective October 1, 1998, the GESE Trust was amended to provide for an increase in the COLA paid to retirees to 4 percent with a $400 annual maximum increase, provided the retiree's first anniversary of retirement has been reached. The amendment also provided for retirees electing the return of their contribution option to receive a minimum COLA benefit of $27 per year and a maximum COLA benefit 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, 2020 amounted to $1.5 million. The DROP balance for the year ended September 30, 2020 amounted to $33.2 million and is recorded with the plans investments on the statements of Fiduciary Net Position. 116 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 BACKDROP Optin (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, 2020 amounted to $245,419. 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 GESE an( 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 GESE are authorized pursuant to Sections 40-246(a) and (b) o the City Code. Contributions from the City are designed to fund 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 GESE serves to reduce or increase futur( 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, 2020 was approximately $111 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, 2020, the average active employee contribution rate was 11.8 percent of annual pay, and the City's average contribution rate was 40.71 percent of annual payroll. Employer contributions for fiscal year 2020 totaled $49.9 million. 117 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 Net Pension Liability The components ofthe net pension liability ofthe GESE Trust at September 30, 2020, are as follows: GESE Trust Total pension liability $ 1,054,074,679 Plan fiduciary net position (733,864,555) Net pension liability $ 320,210,124 Plan feduciary net position as a percentage of total pension liability 69.6% ActuarialAssumptions 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 included in the measurement: Actuarial Assumptions Measurement Date Inflation Projected salary increases Assumed rate of return on investments September 30, 2019 3.5% 4% - 8.75%, including inflation 7.6% per year, net of pension plan investment expense and incl inflation 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 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 pension plan investment expense and inflation) are developed for each major asset class These ranges are combined to produce the long-term expected rate of return by weighting the expecte( future real rates of return by the target asset allocation percentage and by adding expected inflation. Best 118 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 estimates of real rates of return for each major asset class included in the pensions Plan's target asse allocation as of September 30, 2020 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. Changes in Net Pension Liability The following table shows the GESE Trust changes in net pension liability based on the actuarial information provided to the City at September 30, 2020 Balance at 10/01/2019 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 09/30/2020 GESE Trust Increase (Decrease) Total Pension Liability (a) $ 992,241,080 14,701,646 72,575,197 51,240,022 (2,153,338) 78,636 (74,608,564) 61,833,599 $ 1,054,074,679 Plan Fiduciary Net Position (h) $ 704,529,898 43,526,929 13,094,948 47,381,929 (74,608,564) (60,585) 29,334,657 $ 733,864,555 Net Pension Liability (al- (h) $ 287,711,182 14,701,646 72,575,197 51,240,022 (2,153,338) 78,636 (43,526,929) (13,094,948) (47,381,929) 60,585 (32,498,942) $ 320,210,124 119 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following table illustrates the impact of interest rate sensitivity on GESE Trust net pension liability as of September 30, 2020: Current Discount 1 % Decrease Rate 1 % Increase (6.6%) (7.6%) (8.6%) Net Pension Liability $ 432,474,070 $ 320,210,124 $ 225,594,937 Pension Expense and Deferred Outflows/Inflows of Resources Related to Pension For the year ended September 30, 2020, the City recognized pension expense of $88.3 million. At September 30, 2020 the City reported deferred inflows and outflows of resources from the following source: GESE Trust Deferred Outflows of Deferred Inflows of Resources Resources Differences between expected and actual experience $ 20,340,124 $ 1,740,821 Changes of assumptions 28,783,684 81,664 Net difference between projected and actual earnings on pension plan investments - 18,315,865 Employer contribution made subsequent to measurement date 49,923,146 - Total $ 99,046,954 $ 20,138,350 There is $49.9 million reported as deferred outflows of resources related to pensions resulting from City contributions made subsequent to the measurement date. This amount will be recognized as a reduction of the net pension liability for year ending September 30, 2021. Other amounts reported related to pensions will be recognized in pension expense as follows: Ye a r ending September 3tb: 2021 $ 8,176,876 2022 9,951,848 2023 8,106,459 2024 2,837,712 2025 (87,437) $ 28,985,458 120 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 GESE Excess Benefit Plan (EBP) Plan Description In July 2000, the City, pursuant to applicable IRC 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 IRC. The GESE Board of Trustees administers the excess benefit plan. GESE members are not require( to contribute to the EBP. Members of the GESE participate in this plan. As of October 1, 2019, the date of the most recent actuarial report valuation, membership in the EBP consisted of 28 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 IRC is: (a) funded from the City's General Fund; (b) paid annually concurrently with the City's annual contribution to normal pension costs which causes the City to realize a reduction in normal pension costs in the same amount; and (c) deposited in a separate account established specifically for the GESE 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, 2020 was approximately $111 million. The City's contribution to the plan for the year ended September 30, 2020 was $417,755 and plan benefit payments were $417,755. Net Pension Liability The components of the net pension liability of the GESE EBP at September 30, 2020, are as follows: GESE EBP Total pension liability $ 8,225,157 Plan fiduciary net position Net pension liability $ 8,225,157 Plan fiduciary net position as a percentage of total pension liability 013/0 121 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 ActuarialAss umptions 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 included in the measurement: Actuarial Assumptions Measurement Date September 30, 2019 Inflation 3.50% Projected salary increases 4% - 8.75%, including inflation Investment rate of return Not applicable, the plan has no assets for investments Discount rate 2.81% 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 Excess Plan has no assets therefore there is no long term rate of return. Discount Rate The discount used to measure the total pension liability was 2.81 percent (a decrease of 1.28 from the prior year rate of 4.09 percent). Since the Excess plan has no assets, there are no assets available to ma projected future benefit payments of current plan members. Therefore, the applicable municipal bond index rate of 2.81 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, 2020 was applied to all periods of projected benefit payments. As a result, the Single Equivalent Interest Rate (SEIR) is also 2.81 percent. 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. 122 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 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, 2020: GESE EBP Increase (Decrease) Total Pension Plan Fiduciary Net Net Pension Liability Position Liability (a) (b) (a) - (b) Balance at 10/01/2019 $ 8,020,884 $ - $ 8,020,884 Changes for the year: Interest 318,281 - 318,281 Differences between expected and actual experience (930,692) (930,692) Changes of assumptions 1,294,576 - 1,294,576 Contributions - employer - 477,892 (477,892) Benefit payments, including refunds of member contributions (477,892) (477,892) - Net Changes 204,273 - 204,273 Balances at 09/30/2020 $ 8,225,157 $ $ 8,225,157 Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following table illustrates the impact of interest rate sensitivity on GESE EBP net pension liability as of September 30, 2020: Current Discount 1 % Decrease Rate 1 % Increase (1.81 %) (2.81 %0) (3.81%) Net Pension Liability $ 9,548,228 $ 8,225,157 $ 7,182,775 Pension Expense and Deferred Outflows/Inflows of Resources Related to Pension For the year ended September 30, 2020, the City recognized pension expense of$260,962. At Septembe 30, 2020 the City reported deferred outflows and inflow of resources from the following source: Differences between expected and actual experience Changes of assumptions Employer contribution made subsequent to measurement date Total GESE EBP Deferred Outflows of Deferred Inflows of Resources Resources 1,329,003 $ 3,227,606 406,314 417,755 - 1,746,758 $ 3,633,920 123 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 There is $417,755 reported as deferred outflows of resources related to pensions resulting from City contributions made subsequent to the measurement date. This amount will be recognized as a reduction of the net pension liability in the year ending September 30, 2021. Other amounts reported related to pensions will be recognized in pension expense as follows: Ye ar ending September 3b: 2021 $ (653,741) 2022 (836,222) 2023 (609,534) 2024 (220,754) 2025 15,334 $ (2,304,917) City ofMiami General Employees and Sanitation Employees Retirement Trust (Staff Trust) Plan Description The Staff Trust is a single -employer, defined benefit plan. The Staff Trust was established by the rule - making authority of the GESE, pursuant to Chapter 40 of the City Code. The Staff Trust covers all administrative full-time employees and other positions as may be named by the Board of Trustees. Participation in the Staff Trust is a mandatory condition of employment for all full-time employees, other than those eligible to decline membership As of September 30, 2019, membership in the Staff Trust consisted of the following: Members Retirees and beneficiaries currently receiving benefits 7 Terminated members entitled to benefits but not yet receiving benefits 1 Active employees 6 Total 14 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 ag( 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 Plc(DROP) The Staff Trust implemented a DROP for employees eligible for Rule of 70 Retirement on March 26, 2010. Any employee who is eligible for a Rule of 70 Retirement is eligible to participate in the DROP. Upon election of participation, a member's creditable service, accrued benefits, and compensation calculation are frozen and the DROP payment is based on the member's average final compensation. 124 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 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 IRC Section 457 Plan, or an annuity. A participant may defer payment until the latest date authorized by Section 401(a) (9) of the IRC. 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, 2020 amounted to $997,559 thousand and is recorded with the Plan's Investments on the Statement o Fiduciary Net Position. Contributions and Funding Pojic Members of the Staff Trust are required to contribute 10 percent of their salary on a bi-weekly basis. The funding policies of the Staff Trust provide for periodic contributions at actuarially determined rates that, expressed as percentages of annual covered payroll, are sufficient to maintain the actuarial soundness of the Staff Trust and to accumulate sufficient assets to pay benefits when due. The City is required to contribute an actuarially determined amount that, when combined with member contributions, will fully provide all benefits as they become payable. The yield (interest, dividends and net realized and unrealized gains and losses) on investments of the Staff Trust serves to reduce o1 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, 2020 was approximately $388,000. 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, 2020, the average active employee contribution rate was 12.7 percent of annual covered pay, and the City's average contribution rate was 57.2 percent of annual covered payroll. Employer contributions for fiscal year 2020 totaled $0.2 million. 125 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 Net Pension Liability The components of the net pension liability of the follows: Total pension liability Plan fiduciary net position Net pension liability Plan feduciary net position as a percentage of total pension liability Actuarial Assumptions GESE Staff Trust at September 30, 2020, GESE Staff Trust 5,418,674 (4,406,610) $ 1,012,064 81.3% are as 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 included in the measurement: Actuarial Assumptions Measurement Date September 30, 2019 Inflation 3.50% Projected salary increases 6%, including inflation Investment rate of return 7.6% per year, net of pension plan investment expense and includir inflation. 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, setback four years, no projection 126 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 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 pension plan investment expense and inflation) are developed for each major asset class These ranges are combined to produce the long-term expected rate of return by weighting the expecte( future real rates of return by the target asset allocation percentage and by adding expected inflation. Bes estimates of real rates of return for each major asset class included in the pension plan's target asse allocation as of September 30, 2020 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, 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, 2020: Balance at 10/01/2019 Changes for the year: Service Cost Interest Differences between expected and actual experience Contributions - employer Contributions - member Net investment income Benefit payments, including refunds of member contributions Net Changes Balances at 09/30/2020 Total Pension Liability (a) $ 5,228,668 82,784 385,782 26,620 GESE Staff Trust Increase (Decrease) Plan Fiduciary Net Position (b) $ 4,262,009 232,280 - 40,846 176,655 Net Pension Liability (a) - (b) 966,659 82,784 385,782 26,620 (232,280) (40,846) (176,655) (305,180) (305,180) - 190,006 144,601 45,405 $ 5,418,674 $ 4,406,610 $ 1,012,064 Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following table illustrates the impact of interest rate sensitivity on the GESE Staff Trust Plan net pension liability as of September 30, 2020: Current Discount 1% Decrease Rate 1% Increase (6.6%) (7.6%) (8.6%) Net Pension Liability $ 1,788,447 $ 1,012,064 $ 393,660 128 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 Pension Expense and Deferred Outflows/Inflows of Resources Related to Pension For the year ended September 30, 2020, the City recognized pension expense of $162,950. At Septembe 30, 2020 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 $ 49,865 $ Net difference between projected and actual earnings on pension plan investments - 57,682 Employer contribution made subsequent to measurement date 261,237 Total $ 311,102 $ 57,682 There is $261,237 reported as deferred outflow of resources related to pension resulting from City's contributions made subsequent to the measurement date. Amount will be recognized as a reduction of the net pension liability in year ending September 30, 2021. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year ended September3'b: 2021 $ (26,382) 2022 (18,553) 2023 7,910 2024 29,208 $ (7,817) GESE StaffExcess 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 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, 2019, 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, 2020 As of September 30, 2020, there are no pension liabilities related to this plan that requires recognition or disclosure by the City. Elected Officers ' Re tire me nt Trust (FORT) 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 IRC 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 RC. As ofJanuary 1, 2020, 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 1 Total 9 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 entrant 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 Policy The City's 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, 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, 2020 was $568,910. For the year ended September 30, 2020, EORT had $100,585 in covered payroll for employees. Net Pens ion Liability The components of the net pension liability ofEORT at September 30, 2020, were as follows: Actuarial Assumptions The total pension liability was determined based on a January 1, 2020 actuarial valuation date and measurement date using the following assumptions, applied to all periods included in the measurement. Actuarial Assumptions Assumed rate of return on 2.50% for the period Jan 1, 2020 and future periods investments of pension plan investment expense Inflation Rate 2.25% Actuarial cost method Entry age normal Projected salary increases None CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 arithmetic real rates of return by asset class included in the pensions plan's target asset allocation as o- September 30, 2020, 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 of projected benefit payments to determine the total pension liability. Changes in Net Pension Liability The following table shows the EORT changes in net pension liability based on the actuarial information provided to the City at September 30, 2020: EORT Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (a) (b) (a) - (b) Balances at 10/O1/2019 $ 10,024,697 $ 7,546,162 $ 2,478,53f Changes for the year: Interest 246,287 - 246,28 i Differences between expected and actual experience 906,733 - 906,733 Changes of assumptions 93,871 - 93,871 Contributions - employer - 0* 0 Net investment income - 132,455 (132,455; Benefit payments, including refunds of member contributions (319,771) (319,771) Administrative expenses and Other - (2,400) 2,40( Net Changes 927,120 (189,716) 1,116,83E Balances at9/30/2020 $ 10,951,817 $ 7,356,446 $ 3,595,371 *Contribution of $568,910 for 2019 plan year was made on January 31, 2020. 132 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following table illustrates the impact of interest rate sensitivity on the EORT net pension liability as of September 30, 2020: Current Discount 1% Decrease Rate 1% Increase (1.5%) (2.5%) (3.5%) Net Pension Liability $ 5,110,501 $ 3,595,371 $ 2,364,888 Pension Expense and Deferred Outflows/Inflows of Resources Related to Pension For the year ended September 30, 2020, the City recognized pension expense of$1,227,377. At September 30, 2020 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 $ 253,230 Employer contribution made subsequent to measurement date 568,910 Total $ 822,140 There is $568,910 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 ending September 30, 2021. Other amounts reported as deferred outflows of resources related to pensions will be recognized in pension expense as, follows: Year ended September 2021 $ 121,760 2022 81,804 2023 39,299 2024 10,367 $ 253,230 133 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 Separate stand-alone financial statements are not issued for EORT and are therefore presented below an as: City of Miami, Florida Statement of Changes in Fiduciary Net Position Fiduciary Fund For the Fiscal Year Ended September 30, 2020 Additions Contributions: Employer Total Contributions Investment Earnings: Net Increase in Fair Value of Investments Total Investment Earnings Security Lending Activities: Elected Officers Retirement Trust (EORT) $ 568,910 568,910 116,618 116,618 Net Investment Earnings 116,618 Total Additions 685,528 Deductions Benefits/Payments 450,763 Administrative and Other Expenses 2,400 Total Deductions 453,163 Change in Net Position 232,365 Net Position- Beginning of Year 7,383,689 Net Position- End of Year $ 7,616,054 134 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 City of Miami, Florida Statement of Fiduciary Net Position Fiduciary Fund September 30, 2020 Assets Investments: U.S. Government Obligations Money Market Funds and Commercial Paper Total Investments Total Assets Liabilities Accrued Liability Total Liabilities Net Position Restricted for Pension Benefits Elected Officers Retirement Trust (FORT) 6,560,128 1,072,421 7,632,549 7,632,549 16,495 16,495 $ 7,616,054 135 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 The following summarizes net pension liability, deferred inflow and outflow of resources at September 30, 2020, for each Pension Plan as previously disclosed in Note 10: Deferred Deferred Net Pension Inflow of Outflow of Plan Liability Resources Resources FIPO $ 661,101,931 $ 74,622,982 $ 142,564,639 GESE Trust 320,210,124 20,138,350 99,046,954 GESE Excess 8,225,157 3,633,920 1,746,758 GESE Staff Trust 1,012,064 57,682 311,102 EORT 3,595,371 822,140 Total $ 994,144,647 $ 98,452,934 $ 244,491,593 Pension Expense $ 93,959,793 88,251,345 260,962 162,950 1,227,377 $ 183,862,427 The schedules of changes in the net pension liability and related ratios and the schedules of contributions, presented as Required Supplementary Information (RSI) following the notes to the financial statements, provides additional information about the net pension liability, plan assets and contributions for each of the City's defined benefit pension plan. Special Benefit Plans (SBP) Certain executive employees of the City are allowed to join the International City/County Management Association (ICMA) Retirement Trust's 401(a) plan (the "SBP'). This defined contribution deferred compensation plan, which covers governmental employees throughout the country, is governed by a Board of Directors responsible for carrying out the overall management of the organization, including investment administration and regulatory compliance. Membership for the City employees is limited by the City Code to specific members of the City Clerk, City Manager, City Attorney's offices, Department Directors, Assistant Directors, and other executives. To participate in the plan a written trust agreement must be executed, which requires the City to contribute 8 percent of the individual's earnable compensation, and the employee to contribute 10 percent of their salary. Participants may withdraw funds at retirement or upon separation based on a variety of payout options. The City does not have any fiduciary responsibility relating to the plan, consequently the plan assets are not recorded in the fiduciary funds of the City. As of September 30, 2020, 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 $ 379,273,234 9,514,572 841,847 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 imposed upon property and casualty insurance coverage within the City limits. This tax, which is collected from insurers by the State of Florida, is remitted directly to the Plans' Boards of Trustees. The City is entitled to levy such excise taxes solely for the use of the money purchase benefit plans as long as the minimum benefit provisions of Chapter 175 and 185, Florida Statutes, are met by the FIPO. The City does not have any fiduciary responsibility relating to the SBP, consequently plan assets are not recorded 136 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 in the City's fiduciary funds. The total of such excise taxes received from the State of Florida and remitted to the plans was $9.6 million for the year ended September 30, 2020. Accordingly, these monies are recorded as pass through funds in the City's financial statements. Benefits are allocated to the participants based upon their service during the year and the level of funding received during said year. Participants are fully vested after nine years of service. Upon termination of service, a participant may elect to receive one of the three options (1) a lump sum payment; (2) five substantially equal payments, or (3) 10 percent or more in the first year and the remainder in any way over the next four years. The total must be paid out within five years. NOTE 11. — POST -EMPLOYMENT HEALTH CARE BENEFITS Pursuant to Section 112.0801, Florida Statutes, the City is required to permit participation to the health insurance program by retirees and their eligible dependents at a cost to the retiree that is no greater 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. 754ccounting and Financial Reporting for Post -employment Benefits Other than Pensions (OPER* financial reporting and disclosure of its OPEB plans. Plan Description The City has three separate single -employer OPEB plans for its police, firefighter and general employees retirees. The benefits afforded to all retirees include lifetime medical, prescription, vision, dental and certain life insurance coverage for retiree and dependents. 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. Retired Police Officers receive the same benefits as provided through the FOP Health Trust. As of September 30, 2019, there are approximately 5,789 covered participants of whom approximately 3,592 are active employees and 2,197 are retirees. The City, as authorized by Florida Statutes, establishes the OPEB benefit terms and contribution requirements, any amendments thereto would require approval by the City commission. 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 the premium costs each month. Spouses and other dependents are also eligible for coverage, although the retiree pays the premium cost. 137 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 Currently, the City's OPEB Plans are unfunded. There are no separate trust funds or equivalent arrangements into which the City makes contributions to advance -fund the OPEB obligations, as it does for its retiree pension plans. The City's cost of the OPEB benefits is funded on a pay-as-you-go basis. Th City contributed $12.3 million to these OPEB Plans for the fiscal year ended September 30, 2020. In addition to three plans administered by the City, the FOP sponsors a HIT that is partially self -insured, which provides life, heath, and accidental death and dismemberment insurance to substantially all full time sworn members of the City's Police department, eligible retirees, their families and beneficiaries. The HIT receives a significant source of its funding from the City, pursuant to the terms of a collective bargaining agreement. The agreement requires the City to reimburse the HIT an amount that is required t bring the HIT's minimum fund balance to $2.35 million annually. City ofMiami Police - OPEB Plan The City's total OPEB liability for its Police Officers was determined by an actuarial valuation as of October 1, 2019 and rolled forward to September 30, 2020 using the following assumptions applied to all periods included in the measurement date, unless otherwise specified: Actuarial Assumptions Projected salary increases Discount rate Healthcare cost trend rates Not applicable 2.21% 6.5% decreasing 0.5% per year to an ultimate rate of 5.0% Mortality rates were based on the Pub-2010 Total Dataset mortality table with mortality improvements Projected by Scale MP-2020 on a generational basis. Changes of assumptions and other inputs reflect a change in the discount rate from 2.66% at September 30, 2019 to 2.21% at September 30, 2020. High -Cost Plan Excise Tax: Repealed 12/31/2019 Discount Rate For plans that do not have assets, the discount rate is based on the tax-exempt municipal bond rate on index of 20-year general obligation bonds with an average AA rating as of the measurement date. Therefore, a discount rate of 2.21% was adopted as of the September 30, 2020 measurement date 138 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 Changes in the Total OPEB Liability Police Plan Total OPEB liability Balances at9/30/2019 $ 593,252,132 Changes for the year. Service Cost 23,424,653 Interest 12,875,493 Difference between expected and actual experience (150,693,611) Changes of assumptions 80,970,635 Benefit payments, including refunds of member contributions (9,114,857) Net Changes (42,537,687) Balances at9/30/2020 $ 550,714,445 Sensitivity of the otaiOPEBLiability to Changes in the Discount Rate The following table illustrates the impact of interest rate sensitivity on the total OPEB Liability for the year ended September 30, 2020: 1% Decrease (1.21 %) Police Plan Current Dis count Rate 1 %Increase (2.21%) (3.21%) Total OPEB Liability $ 620,261,482 $ 550,714,445 $ 398,918,989 The following table illustrates the impact of healthcare cost trend rate sensitivity on the total OPEB Liability for fiscal year ended September 30, 2020: 1%Decrease Police Plan Health Care Cost Trend Rates 1%Increase Total OPEB Liability $ 438,709,779 $ 550,714,445 $ 706,278,07 139 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of ReRolatE6ukto OPEB For the fiscal year ended September 30, 2020, the City recognized OPEB expense of $43,585,379. A September 30, 2020, the City reported deferred inflows of resources related to OPEB in the amount of $162,114,364 for changes in assumptions and deferred outflows of resources related to OPEB in the amount of $190,142,528 for changes in assumptions. Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEF will be recognized in OPEB expense as follows: Year ended September 2021 $ 7,285,232 2022 7,285,233 2023 7,285,233 2024 7,285,233 2025 10,757,333 Thereafter (11,870,101) $ 28,028,16, City ofMiami General Employees — OPEB Plan The City's General Employees total OPEB liability was measured as of September 30, 2020 and determined by an actuarial valuation as of that date. The General Employees Plan is inclusive of all City employees, excluding Police and Firefighter employees. 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 3.5% per annum Discount rate 2.21% per annum Healthcare cost trend rates The annual trends are based on the current HCA Consulting study and are applied on a select and ultimate basis. Select range from 6.0%-4.5% and are reduced 0.5% each year until reE the ultimate trend rate of 4.5%. Mortality rates were based on the Pub-2010 generational table scaled using MP-2020 and applied on gender -specific basis. Change of assumptions and other inputs reflect a change in the discount rate from 2.66% at September 30, 2019 to 2.21% at September 30, 2020. In addition, the mortality assumption was updated from RP- 2014 mortality table with generational scale MP-2018 to Pub-2010 mortality table with generational scale MP-2020 to reflect the Society of Actuaries' recent mortality study. Lastly, the Excise Tax assumption was removed from the valuation, due to its repeal in December 2019. 140 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 Discount Rate For plans that do not have assets, the discount rate is based on the tax-exempt municipal bond rate on index of 20-year general obligation bonds with an average AA rating as of the measurement date. Therefore, the discount rate used to measure the total OPEB liability was 2.21 %, which is based on the Bond Buyer 20-Bond GO index. Changes in the Total OPEB Liability Balances at9/30/2019 Changes for the year. Service Cost Inte re s t Differences between expected and actual experience Changes of assumptions Benefit payments, including refunds of member contributions Net Changes Balances at9/30/2020 General Employees Total OP EB liability $ 196,309,97 9,770,177 5,440,2 84 (46,944,745) 12,599,295 (3,116,358) (22,251,347) $ 174,058,62 Sensitivity of theTotaiOPEB 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 ended September 30, 2020: 1% Decrease (1.21%) General Employees Current Dis count Rate (2.21 %) 1 %Increase (3.21%) Total OPEB Liability $ 215,234,000 $ 174,058,625 $ 142,850,000 The following table illustrates the impact of healthcare cost trend rate sensitivity on the total OPEB Liability for fiscal year ended September 30, 2020: Health Care Cost 1%Decrease Trend Rates 1%Increase Total OPEB Liability $ 146,001,000 $ 174,058,625 $ 210,111,00( 141 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of ReRolatEato OPEB For the fiscal year ended September 30, 2020, the City recognized OPEB expense of $15,336,703. A September 30, 2020, the City reported deferred inflows of resources related to OPEB in the amount of $40,719,803 for differences between expected and actual experience, and $13,831,044 for changes i assumptions and deferred outflows of resources related to OPEB in the amount of $59,914,462 for changes in assumption. Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEF will be recognized in OPEB expense as follows: Ye ar a nding September 3b: 2021 $ 126,24 2022 126,242 2023 126,242 2024 126,242 2025 126,242 Thereafter 4,732,405 $ 5,363,61 City of Miami Fire — OPEB Plan The City's Fire OPEB Plan total OPEB liability for its firefighter's plan was measured as of September 30, 2020 and determined by an actuarial valuation as of that date using the following assumptions applies to all periods included in the measurement, unless otherwise specified. Effective January 1, 2019, members of the Fire Fighter Union (IAFF) and their retirees formed the Local 587 Health Insurance Trust. Actuarial Assumptions Projected salary increases Discount rate Healthcare cost trend rates 4.75% per annum 2.41% per annum The current health care trend rate starts at an initial rate of 8.00% decreasing to an ultimate rate of 4.50%. Mortality rates were based on the Pub-2010 generational table scaled using MP-2018 and applied on gender -specific basis. The prior valuation used a discount rate of 2.66% as of October 1, 2019. The current full valuation uses discount rate of 2.41% as of September 30, 2020. This change has caused a slight increase in liabilities. The health care coverage election rate assumption at retirement was updated from 70% to 90%. The resi of this change was a significant increase in liabilities. 142 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 The retirement rates, mortality rates, withdrawal rates, and payroll growth rate assumptions have beer updated to follow the City of Miami firefighters' and Police Officers' Retirement Trust Pension Actuarial valuation report as of October 1, 2019. In aggregate, the impact of these changes resulted in a significar decrease in liabilities. The lapse rate assumption was updated from being 2% per year after age 65 to no lapse rates. The res of this change was a significant increase in liabilities. Health care trend rates have been reset to an initial rate of 8.0% decreasing by 0.5% annually to a; ultimate rate of 4.5%. Dental/Vision trend rates have been reset to an initial rate of 4.0% decreasing by 0.25% annually to an ultimate rate of 3.0%. The result of this change was an increase in liabilities. Discount Rate The discount rate used to measure the total OPEB liability was 2.41%, which is based on a yield for 20 year tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher (or equivalent quality on another rating scale). Changes in the Total OPEB Liability Fire Plan Total OPEB Liability Balances at 9/30/2019 $ 74,064,501 Changes for the year: Service Cost 5,753,979 Interest 2,121,916 Changes in assumption 18,637,678 Differences between expected and actual experience 42,693,288 Benefit payments, including refunds of member contributions (95,000) Net Changes 69,111,861 Balances at 9/30/2020 $ 143,176,36 Sensitivity of thd'otaiOPEB 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 ended September 30, 2020: Current Discount 1%Decrease Rate 1 %Increase (1.41%) (2.41%) (3.41%) Total OPEB Liability $ 168,896,964 $ 143,176,361 $ 122,807,625 143 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 The following table illustrates the impact of healthcare cost trend rate sensitivity on the total OPEB Liability for fiscal year ended September 30, 2020: 1%Decrease Health care cost Trend Rates 1%Increase Total OPEB Liability $ 118,265,276 $ 143,176,361 $ 176,267,87: OPEB Expense and Deferred Outflows ofResources and Deferred Inflows of ReRolatackto OPEB For the fiscal year ended September 30, 2020, the City recognized OPEB expense of $14,008,992. A September 30, 2020, the City reported deferred outflows of resources related to the Fire OPEB plan in till amount of $38,423,959 for differences between expected and actual experience and $16,773,910 fo changes in assumptions. Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEF will be recognized in OPEB expense as follows: Year ending September3V: 2021 $ 2022 2023 2024 2025 Thereafter 6.133,09' 6.133,097 6.133,097 6.133,097 6.133,097 24,532,384 $ 55,197,86' The following summarizes total OPEB liability, deferred inflow and outflow of resources and OPEB expense at September 30, 2020 for each OPEB plan. Plan Police Fire General Employee Total Total OPEB Liability $ 550,714,445 143,176,361 174,058,625 $ 867,949,431 Deferred Inflow of Resources $ 162,114,364 54,550,846 $ 216,665,210 Deferred Outflow of Resources $ 190,142,528 55,197,869 59,914,462 $ 305,254,859 OPEB Expense $ 43,585,379 14,008,992 15,336,703 $ 72,931,074 144 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 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. These grants are for specific purposes and are subject to review and audit by the grantor agencies. Such audits could result in requests for reimbursement for expenditure being disallowed under the grant terms. Based upon prior experience, the City's management believe: 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 tr City, County, and CRAs 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 CRAs' 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 funding required to make annual debt service payments. 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. On July 17, 2020, the City issued $28,035,000 Special Obligation Non -Ad Valorem Revenue Refunding Note, Taxable Series 2020 (Port of Miami Tunnel Project) for the purpose of providing funds, together with all available moneys to (i) refund a portion of the Special Obligation Non -Ad Valorem Series 2012 Bonds and (ii) pay the cost of issuance of the Series 2020 Bonds. As of September 30, 2020, 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 $8.3 million, and the total outstanding related debt for the Special Obligation Non -Ad Valorem Revenue Refunding Note, Taxable Series 2020 was approximately $28.0 million. 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. The City commission, at its discretion, may grant, by ordinance, ad -valorem tax exemptions to new and expanding businesse; located within enterprise zones. Qualifying new or expanding businesses were eligible to receive an exemption up to 100% of the municipal portion of their real or personal property ad -valorem taxes. The Florida Statutes which enabled this exemption gave the right to all applicants to be considered by the City Commission. If they were approved as qualified by the administration, they were entitled to an up or down vote by the Commission. If the administration did not approve their application, they had a right to appeal to the Commission. Unfortunately, approved applicants were not submitted and rejected applicant 145 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 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 Commission approved Resolution #18-0033 authorizing to pay an amount not to exceed $12,000,000 in full settlement of any and all claims alleged against the City in the class action. $4.1 million in attorney fees and settlement claims of approximately $2.5 million have been paid, leaving the remaining balance of approximately $5.4 million for distribution to the class on an annual basis every October 1 Fraternal Order of Police, Walter E. Headley, Jr., Miami Lodge No. 20 v. City of 1Vfiami,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, the City unilaterally took action to alter the terms and conditions of employment before reaching impasse with the Police Union, in violation of Section 447.501(1)(a) and (1)(c). Further, the Police Union alleges that, although the changes were not discussed with them, they were discussed in a closed door 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) II (a), Florida Statutes. It also asserts that by unilaterally altering terms and conditions of employment before completion of the impasse procedure set forth in Section 447.403, Florida Statutes and by not responding to a request for records, the City violated Section 447.501(1)(a) and (1)(c), Florida Statutes. The City received a recommended order from the Hearing Officer in its favor, which was ultimately adopted by the City Commission. The FOP appealed to the Florida District Court of Appeals, First District. The First District affirmed. The FOP sought review by the Florida Supreme Court. The Florida Supreme Court accepted review. The Supreme Court heard oral arguments on April 7, 2015. Or March 2, 2017, the Florida Supreme Court issued a decision in favor of FOP, quashing the decision of thf 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-pai 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, an( 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 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 required the City to pay $33 million, including backpay claims and increases to future pay and 146 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 pension benefits by the Police Union. The remaining unpaid balance due on the settlement at Septembi 30, 2020 is $17.5 million. International Association of Firefighters, Loca1587 v. City of Miami,The IAF Loca1587 (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 thl 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 Sectio] 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 M cdiuy v. City ofMiami.The PERC entered an Order on the Merits of the Unfair Labor Practice Charge and scheduled a backpal 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 remaining unpaid balance due on the settlement a September 30,2020 is $12.t million. AFSCME Local 1907 v. City of Nfiami, The City's IT employees grieved the City's failure to pay restoration increases on top of their salary adjustments that were given on January 7, 2018. The issu before the arbitrator was: Whether the City has violated Article 24 of the Collective Bargaining Agreement (CBA) by failing to apply the `restoration increases' to IT employees' adjusted January 2018 salary rates, and if so, what remedy is available. After hearing arguments and evidence of the parties, th arbitrator found that the City violated Article 24.1 of the CBA. The arbitrator ruled that the restoration percentage must be applied to the IT restoration wages beginning October 1, 2017 forward, even on toi of the new pay structure imposed on January 7, 2018. After the award, the Union challenged the City's calculation of the remedy and further petitioned the arbitrator to increase the number of employees to be paid under the award. After an evidentiary hearing, the arbitrator found that the City's calculations were correct and increased the number of payees from 33 to include all IT employees that suffered the wag( reduction as a result of the City's 2010 declaration of financial urgency. The City's financial obligation under this award is approximately $1.1 million in backpay. Litig atio n 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 147 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 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 sought damages. 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 sought by the third party included actual damages to date and future consequential damages, as a result the breach of contract. On May 10, 2019, the City entered into a settlement agreement, under which the City agreed to pay upfront settlement payments totaling $10 million dollars. The first such payment of $5 million was due and paid within ten business days of the execution date of the agreement. An additional payment of $2.5 million was due and paid on October 4, 2019 and the final remaining upfront settlement payment of $2.5 million is due on October 4, 2020. In addition, the third party is entitled to $10 million dollars of credits to offset amounts owed to the City to be applied as provided in the agreements. An accrual for the remaining amount due of $12.6 million is recorded as a long-term liability at fiscalyear end. Encumbrance s Encumbrance accounting, under which purchase orders, contracts and other commitments for expenditu: 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 of restricted, committed or assigned in accordance with the City's fund balance policy. The City has outstanding encumbrances in the governmental funds. The following is a summary of these commitments at September 30, 2020. Governmental Funds Major Funds: Other Capital Projects Impact Fee Emergency Services Non Major Governmental Funds Total $ 24,787,816 6,249,430 2,241,833 16,184,900 $ 49,463,979 148 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 NOTE 13. — SUBSEQUENT EVENTS On October 28, 2020, the City obtained a $16.3 million dollar Lease from Santander Bank, N.A. under a Master Lease Purchase Agreement. The lease was issued with an interest rate of 1.8076% and maturi date of January 1, 2025. The purpose of the lease is to purchase police and fleet vehicles and to pa financing costs. At the end of the lease, the City will own the vehicles outright; the City is not pledging any revenue as security for the lease. The vehicles themselves will collateralize the lease. On December 10, 2020, pursuant to Resolution No. R-20-0409, the City Commission amended the fiscal year 2020-2021 adopted operating budget by authorizing a $45 million transfer out from the Building Reserve Fund in the General Fund ("Amendment #1 to the Adopted Operating Budget') and amended the Adopted Capital Plan for the Capital Project Fund to create a new project number for a new future building facility for the City's Building Department by making the corresponding transfer of $45 million into the City's Capital Plan. The funds were subsequently appropriated on January 28, 2021 pursuant t( Resolution No. R-21-0043. On January 28, 2021, the City of Miami Commission approved the declaration of intent to issue both taxable and tax-exempt General Obligation Bonds at an initial expected not to exceed total maximum principal amount of $40 million as Tranche 2 of the $400 million Miami Forever Bond voted by residents in November 2017. Amongst other things, the intent is to reimburse the City for funds advanced for certain expenses incurred with respect to capital projects to be undertaken by the City to improve affordable housing within the City's limits and associated costs. NOTE 14. — PRONOUNCEMENTS ISSUED, BUT NOT YET ADOPTED GASB Statement No. 84, Fiduciary Activities,this Statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a 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 provisions of this Statement will be effective for the City beginning with its year ending September 30, 2021. GASB issued Statement No. 87jeases 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 b requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payme provisions of the contract. It establishes a single model for lease accounting based on the foundations principle that leases are financings of the right to use an underlying asset. Under this Statement, a less( is required to recognize a lease liability and an intangible right -to -use lease asset, and a lessor is require to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance ai consistency of information about governments' leasing activities. The provisions of this Statement will be effective for the City beginning with its year ending September 30, 2022. 149 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 GASB issued Statement No. 90, Majority Equity Interests —an amendment of GASB Statements No. 14 and No. 61.The primary objectives of this Statement are to improve the consistency and comparability of reporting a government's majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain componentunits. The provisions of this Statement will be effective for the City beginning with its year ending September30, 2021. GASB issued Statement No. 91, Conduit Debt Obligationihe primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with condo debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with condo debt obligations; and improving required note disclosuT. provisions of this Statement will be effective for the City over a 3 year period beginning with its year ending September 30, 2023. GASB issued Statement No. 92, OmnibusThe objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application o certain GASB Statements. Certain requirements of this pronouncement were applicable during fiscal yea 2020 but did not have an impact on the City's financial statements. The remaining requirements of this Statement are effective for the City beginning with its year ending September 30, 2022. GASB Statement No. 93, Replacement of Interbank Offered RatesSome governments have entered into agreements in which variable payments made or received depend on an interbank offered rate (IBOR)—most notably, the London Interbank Offered Rate (LIBOR). As a result of global reference rate reform, LIBOR is expected to cease to exist in its current form at the end of 2021, prompting governments to amend or replace financial instruments for the purpose of replacing LIBOR with other reference rates, by either changing the reference rate or adding or changing fallback provisions related t the reference rate. The objective of this Statement is to address those and other accounting and financi reporting implications that result from the replacement of a LIB li .requirements of portions of this Statement are effective for the City over a 3-year period, beginning with its year ending September 30, 2021. GASB Statement No. 94, Public -Private and Public -Public Partnerships and Availability Payment Arrangements. The primary objective of this Statement is to improve financial reporting by addressing issues related to public -private and public -public partnership arrangements (PPPs). The requirements o this Statement are effective for the City beginning with its year ending September 30, 2023. 150 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2020 GASB Statement No. 96, Subscription -Based Information Technology Arrangements. This Statement provides guidance on the accounting and financial reporting for subscription -based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right -to -use subscription asset —an intangible asset —and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87,Leases, as am.elil edequirements of this Statement are effective for the City beginning with its year ending September 30, 2023. GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans —an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement NoThf2primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting o fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. The requirements of this Statement are effective for the City beginning with its year ending September 30, 2022. Except for the requirement of this Statement that: (1) exempt primary governments that perform the duties that a governing board typically performs from treating the absence of a governing board the same as the appointment of a voting majority of a governing board in determining whether they are financially accountable for defined contribution pension plans, defined contribution OPEB plans, or other employee benefit plans, and (2) limit the applicability of the financial burden criterion in paragraph 7 of Statement 84 to defined benefit pension plans and defined benefit OPEB plans that are administere( through trust that meet the criteria in paragraph 30 of Statement 67 or paragraph 30 of Statement74 respectively, are effective immediately. The City's management has not yet determined the effect these statements will have on the City's financial statements. However, management expects that GASB 87 will have a significant impact once implemented. NOTE 15. — Coronavirus (COVID-19) On January 30, 2020, the World Health Organization declared the Coronavirus (COVID-19) outbreak a Public Health Emergency of International Concern. The spread of COVID-19, a novel strain of coronavirus, appears to be altering the behavior of business and people in a manner that is havinl negative effects on local, regional and global economies. The extent to which COVID-19 will continue to impact the operations of entities in the future will depend on future developments, which are uncertain and cannot be predicted with confidence. The continued spread of COVID-19 could adversely impact the City's operations. 151 Required Supplementary Information City of Miami, Florida Schedule of Revenues, Expenditures and Changes In Fund Balance Budget and Actual - General Fund (Budgetary Basis) For The Year Ended September 30, 2020 (Unaudited) Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Property Taxes $ 396,441,000 $ 396,441,000 $ 389,606,919 $ (6,834,081) Franchise and Other Taxes 115,481,000 115,481,000 113,729,425 (1,751,575) Licenses and Permits 67,905,000 67,905,000 71,893,886 3,988,886 Fines and Forfeitures 5,904,000 5,904,000 7,487,994 1,583,994 Intergovernmental Revenues 81,856,000 84,200,000 63,866,915 (20,333,085) Charges for Services 122,669,000 122,669,000 103,856,883 (18,812,117) Investment Earnings (Loss) 7,150,000 7,150,000 10,684,319 3,534,319 Other 6,891,000 (1,393,000) 3,957,298 5,350,298 Total Revenues 804,297,000 798,357,000 765,083,639 (33,273,361) Expenditures: General Government Mayor 1,687,000 1,627,000 1,365,412 261,588 Commissioners 4,086,000 3,906,000 3,596,026 309,974 City Manager 3,072,000 2,822,000 2,836,075 (14,075) Agenda Coordination 379,000 379,000 392,344 (13,344) City Clerk 2,059,000 2,039,000 1,963,543 75,457 Neighborhood Enhancement Team 8,637,000 8,397,000 8,402,652 (5,652) Civil Service Board 559,000 558,000 546,128 11,872 Independent Auditor General 1,530,000 1,400,000 1,323,274 76,726 Communications 2,329,000 2,309,000 2,245,325 63,675 Human Resources 5,291,000 5,129,000 5,262,010 (133,010) Dept Human Services 5,962,000 5,722,000 5,213,632 508,368 Innovation and Technology Department 14,454,000 14,004,000 14,219,650 (215,650) City Attomey 9,994,000 9,919,000 9,909,611 9,389 Management and Budget 2,779,000 2,719,000 2,711,575 7,425 Procurement 2,928,000 2,888,000 2,841,278 46,722 Equal Opportunity & Diversity Programs 508,000 573,000 536,252 36,748 Finance 10,330,000 10,320,000 10,531,161 (211,161) Capital Improvements and Transportation 4,603,000 4,553,000 4,334,756 218,244 Grants Administration 1,708,000 1,446,000 1,386,669 59,331 Non -Departmental 38,944,000 38,105,000 9,353,555 28,751,445 Risk Management 3,663,000 3,543,000 3,283,269 259,731 Resiliency and Sustainability 831,000 721,000 646,770 74,230 Veterans Affairs and Homeless Services - - (1,082) 1,082 Total General Government 126,333,000 123,079,000 92,899,885 30,179,115 Planning and Development Building 16,625,000 15,092,000 16,270,226 (1,178,226) Planning 5,927,000 5,787,000 5,956,425 (169,425) Zoning Department 3,825,000 4,369,000 4,197,921 171,079 Total Planning and Development 26,377,000 25,248,000 26,424,572 (1,176,572) Public Works Solid Waste General Service Administration Public Works and Sustainability Total Public Works 35,915,000 27,865,000 26,298,000 35,515,000 27,465,000 27,187,000 90,078,000 90,167,000 36,314,947 26,441,018 28,834,156 (799,947) 1,023,982 (1,647,156) 91,590,121 (1,423,121) Public Safety Code Compliance 8,437,000 8,416,999 8,488,745 (71,746) Fire - Rescue 161,407,000 162,867,000 161,120,892 1,746,108 Police 265,621,000 260,621,000 261,675,463 (1,054,463) Total Public Safety 435,465,000 431,905,000 431,285,100 619,900 Real Estate and Asset Management Housing and Community 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 13,796,000 13,346,000 13,241,005 104,995 2,437,000 2,027,000 2,025,485 1,515 51,777,000 49,777,000 46,465,454 3,311,546 68,010,000 65,150,000 61,731,944 3,418,056 746,263,000 735,549,000 703,931,622 31,618,378 58,034,000 62,808,000 61,152,017 (1,655,983) 3,862,000 (62,370,000) 474,000 4,945,000 (68,227,000) 474,000 (58,034,000) (62,80R 000) 5,291,193 346,193 (70,719,379) (2,492,379) 897,255 423,255 (64,530,931) (1,722,931) (3,378,914) (3,378,914) 199,945,373 199,945,373 Fund Balance - End of Year $ - $ - $ 196,566,459 $ 196,566,459 152 Notes to Required Supplementary Information City of Miami, Florida YearEnded September30, 2020 (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 Projects Funds and the Emergency Service Special Revenue Fund. The Capital Projects Funds are bud on a total project basis for which annual budgets are not available. For governmental funds, budgets are prepared basis consistent with accounting principles generally accepted in the United States of America. B. Budget -Legal Compliance The City follows these procedures in establishing the budgetary data reflected in the accompanying financi statements: o Prior to August 31, the City Manager submits to the City Commission a proposed operating budget by fund except for the General Fund, which is at the departmental level, for the fiscal year commencing October l The operating budget includes proposed expenditures and the means of financing them. o The Mayor prepares and delivers a budgetary address annually to the people of the City betwdezonituly 1 September 311) o Such report is prepared after consultation with the City Manager. o Public hearings are conducted to obtain taxpayer comments. o Prior to Octobersl, 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 the Commission. o 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 e ach fiscal ye the unencumbered balance of each appropriation reverts to the fund from which it was appropriated and subject to future appropriations. o 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 departmental level. All budget amendments require City Commission approval. During fiscal ?On, supplemental appropriations totaling $5.9 million decrease in the General Fund. The Special Revenue Funds budget was increased in fiscal 2020 as follows: $9.4 million was allocated to Departmental Improvement Initiatives, $4.3 million to Police Service: $3.0 million to Transportation & Transit, $3.0 million to Miami Ballpark Parking Facilities, $2.8 million to General Special Revenue, $2.5 million to Parks and Recreation, 1.6 million to Community and Economic Developmen $416,000 to City Clerk Services, $499,250 to Homeless Programs, $119,000 to Bayfront Land Acquisition Trust, a reductions of $2.8 million to UASI-Fire Rescue, $525,000 to Public Works Services, and $162,000 to the La Enforcement Trust Fund. The CRA budgets for transfers in their Special Revenue Fund Operating Budget to pay their Special Obligation Bonds, therefore the schedule of budget to actuals is not reflected in the Requin Supplementary Information. During fiscal year 2020, the General Fund had expenditures of approximately $3.2 milli( attributable to capital expenditures; these expenditures are budgeted at the department level and not reported sepa on the General Fund Budget to Actual Schedule of Revenues, Expenditures and Changes in Fund Balance present previous page. 153 Required Supplementary Information City of Miami, Florida Schedule of Changes in the Total OPEB Liability and Related Ratios Police Officers Other Post Employment Benefit Plan Last Three Years (Unaudited) 2020 2019 Total OPEB liability Service cost $ 23,424,653 Interest 12,875,493 Changes of benefit terms Differences between expected and actual experience Changes of assumptions Benefit payments Net Change in total OPEB liability Total OPEB liability - beginning Total OPEB liability - ending (150,693,611) 80,970,635 (9,114,857) 2018 $ 15,532,134 $ 18,643,389 17,584,487 16,174,180 166,632,926 (11,270,476) (42,537,687) 188,479,071 593,252,132 404,773,061 $ 550,714,445 $ 593,252,132 Covered payroll Not Available City's Total OPEB liability as a percentage of covered payroll Not Available Not Available Not Available (52,081,436) (9,692,349) (26,956,216) 431,729,277 $ 404,773,061 Not Available Not Available Notes to Schedule: (1) 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. (2) Changes in assumption: The discount rate changed from 2.66% to 2.21%. Updates to the mortality rates based on Pub-2010 Total Dataset mortality table with mortality imporovements projected by Scale MP-2020 on a generational basis. 154 Required Supplementary Information City of Miami, Florida Schedule of Changes in the Total OPEB Liability and Related Ratios General Employees Other Post Employment Benefit Plan Last Three Years (Unaudited) Total OPEB liability Service cost Interest Changes of benefit terms Differences between expected and actual experience Changes of assumptions Plan change Benefit payments Net Change in total OPEB liability Total OPEB liability - beginning Total OPEB liability - ending Covered payroll 2020 2019 $ 9,770,177 5,440,284 (46,944,745) 12,599,295 (3,116,358) (22,251,347) 196,309,972 $ 174,058,625 $ 100,990,997 2018 $ 12,089,305 $ 11,604,247 8,428,692 7,543,984 62,941,852 (74,064,500) (5,278,831) 4,116,518 192,193,454 (20,723,542) (4,900,471) (6,475,782) 198,669,236 $ 196,309,972 $ 192,193,454 $ 104,744,000 $ 154,355,815 City's Total OPEB liability as a percentage of covered payroll 172% 187% Notes to Schedule: (1) This Schedule is presented to illustrate the requirements 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. (2) Plan change: Effective January 1, 2019, members of the Fire Fighter Union (IAFF) including their retirees moved from the City's health plan to participate in a newly formed Health Trust. (3) Changes in assumption:The discount rate from 2.66% to 2.21%. 125% Required Supplementary Information City of Miami, Florida Schedule of Changes in the Total OPEB Liability and Related Ratios Firefighters Other Post Employment Benefit Plan Last Two Years (Unaudited) 2020 2019 Total OPEB liability Service cost $ 5,753,979 $ - Interest 2,121,916 (1,295) Changes of benefit terms - 74,127,736 Changes in assumptions 18,637,678 - Differences between expected and actual experience 42,693,288 Benefit payments (95,000) (61,941) Net Change in total OPEB liability 69,111,861 74,064,500 Total OPEB liability - beginning 74,064,500 Total OPEB liability - ending $ 143,176,361 $ 74,064,500 Covered payroll City's Total OPEB liability as a percentage of covered payroll $ 56,818,495 $ 54,242,000 130% 137% Notes to Schedule: (1) 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. (2) The benefit payments are based on the prior actuary's report (3) The Covered Employee Payroll for FY 2019/20 is based on the Payroll for FY 2018/19 increased by the wage inflation rate (4.75%) (4) Plan change: Effective January 1, 2019, members of the Fire Fighter Union (IAFF) including their retirees moved from the City's health plan to participate in a newly formed Health Trust. Required Supplementary Information City of Miami, Florida Schedule of Changes in the Net Pension Liability and Related Ratios Firefighters and Police (FIPO) Last Seven Fiscal Years (Unaudited) 2020 2019 2018 2017 (Restated) 2016 2015 2014 Total pension liability Service cost $ 33,703,733 $ 30,947,329 $ 27,965,925 $ 26,279,333 $ 21,625,163 $ 19,203,823 $ 17,233,272 Interest 160,096,512 152,192,907 149,244,425 146,548,433 156,265,650 156,479,438 155,338,970 Changes of benefit terms 4,270,406 55,386,337 122,641,436 - 9,453,429 Differences between expected and actual experience 46,795,554 32,027,954 21,728,074 15,553,948 12,725,721 (16,970,540) (6,638,755) Changes of assumptions (82,872,814) (5,024,797) 16,618,357 30,651,781 14,895,466 Benefit payments, including refunds of member contributions (164,416,994) (156,798,207) (156,093,286) (151,375,376) (166,203,470) (165,535,327) (139,860,276) Net change in total pension liability (2,423,603) 108,731,523 59,463,495 159,647,774 55,064,845 17,526,289 26,073,211 Total pension liability - beginning 2,229,656,108 2,120,924,585 2,184,102,526 2,222,547,481 2,167,482,636 2,149,956,347 2,123,883,136 Changes in Benefit Terms - (122,641,436) - - - - Restatement - - (198,092,739) - - - Totalpensionliability- ending 2,227,232,505 2,229,656,108 2,120,924,585 2,184,102,516 2,222,547,481 2,167,482,636 2,149,956,347 Plan fiduciary net position Contributions - employer 67,564,414 62,694,851 56,999,866 53,264,009 48,672,615 48,616,677 47,654,757 Contributions - member 15,820,796 16,309,563 14,258,763 13,206,378 12,082,805 9,317,231 9,462,569 Net investment income 88,184,264 73,863,324 102,296,007 136,351,212 132,946,827 35,529,492 133,609,444 Benefit payments, including refunds of member contributions (164,416,994) (156,798,207) (156,093,286) (151,375,376) (166,203,470) (165,535,327) (139,860,276) Administrative expenses (2,230,468) (2,128,469) (2,086,709) (2,058,797) (2,029,168) (2,222,561) (2,086,240) Other - 585,124 (42,726) (42,726) (42,726) 269,771 (42,726) Net change in plan fiduciary net position 4,922,012 (5,473,814) 15,331,915 49,344,700 25,426,883 (74,024,717) 48,737,528 Plan fiduciary net position - beginning 1,561,208,562 1,566,682,376 1,551,350,461 1,700,098,500 1,674,671,617 1,748,696,334 1,699,958,806 Restatement - - - (198,092,739) - - - Plan fiduciary net position - ending 1,566,130,574 1,561,208,562 1,566,682,376 1,551,350,461 1,700,098,500 1,674,671,617 1,748,696,334 City's net position liability $ 661,101,931 $ 668,447,546 $ 554,242,209 $ 632,752,055 $ 522,448,981 $ 492,811,019 $ 401,260,013 Plan fiduciary net position as a percentage of the total pension liability Covered payroll Net pension liability as a percentage of covered payroll Notes to Schedule: This Schedule is presented to illustrate the requirements 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. 70.24% 73.61% 71.73% 69.80% 78.44% 77.89% 82.33% $ 176,635,566 $ 168,059,448 $ 166,670,939 $ 141,497,840 $ 133,083,231 $ 106,278,378 $ 93,705,765 374.27% 397.74% 332.54% 447.18% 392.57% 463.70% 428.21% 157 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 Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending Required Supplementary Information City of Miami, Florida Schedule of Changes in the Net Pension Liability and Related Ratios General and Sanitation Employees (GESE) Last Six Fiscal Years (Unaudited) 2020 2019 2018 2017 2016 2015 $ 14,701,646 $ 14,547,783 $ 12,906,853 $ 10,165,542 $ 9,234,478 $ 8,678,294 72,575,197 70,181,377 64,220,387 63,603,300 64,212,607 64,248,602 51,240,022 - - - - - (2,153,338) 21,593,105 10,997,320 8,476,546 (8,035,778) - 78,636 - 64,620,251 (421,932) - - (74,608,564) (75,040,709) (73,580,735) (73,827,066) (73,029,933) (73,771,095) 61,833,599 31,281,556 79,164,076 7,996,390 (7,618,626) (844,199) 992,241,080 960,959,524 881,795,448 873,799,058 881,417,684 882,261,883 1,054,074,679 992,241,080 960,959,524 881,795,448 873,799,058 881,417,684 43,526,929 40,879,285 34,355,719 13,094,948 10,847,473 11,081,234 47,381,929 60,276,827 78,645,544 (74,608,564) (75,040,709) (73,580,735) (60,585) (287,451) (352,230) 29,334,657 36,675,425 50,149,532 704,529,898 667,854,473 617,704,941 733,864,555 704,529,898 667,854,473 32,881,500 9,595,465 60,237,354 (73,827,066) (233,337) 28,653,916 589,051,025 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) 29,177,125 619,561,295 590,384,170 617,704,941 589,051,025 619,561,295 City's net position liability $ 320,210,124 $ 287,711,182 $ 293,105,051 $ 264,090.507 $ 284.748,033 $ 261,856,389 Plan fiduciary net position as a percentage of the total pension liability 69.62% 71.00% 69.50% 70.05% 67.41% 70.29% Covered payroll $ 111,004,019 $ 111,127,482 $ 97,373,080 $ 81,069,095 $ 71,924,747 $ 66,370,246 Net pension liability as a percentage of covered payroll 288.47% 258.90% 301.01% 325.76% 395.90% 394.54% Notes 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. 158 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 Net change in plan fiduciary net position 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 Benefit) Last Six Fiscal Years (Unaudited) 2020 2019 2018 2017 2016 2015 318,281 (930,692) 1,294,576 (477,892) 387,640 (2,359,812) (571,232) (587,959) 204,273 (3,131,363) 8,020,884 11,152,247 8,225,157 8,020,884 477,892 587,959 (477,892) (587,959) 385,137 (1,948,114) (92,094) (674,572) $ - $ - $ 469,106 392,659 (516,393) 3,177,002 1,459,230 - (680,534) (653,302) (2,329,643) 731,409 13,481,890 12,750,481 11,152,247 13,481,890 674,572 680,534 (674,572) (680,534) 427,362 763,199 (556,805) 2,916,359 633,756 9,834,122 9,200,366 12,750,481 9,834,122 648,302 561,805 (653,302) (556,805) 5,000 (5,000) Plan fiduciary net position - beginning - - - - - - Plan fiduciary net position - ending - - - - - - City's net position liability $ 8,225,157 $ 8,020,884 $ 11,152,247 $ 13,481,890 $ 12,750,481 $ 9,834,122 Plan fiduciary net position as a percentage of the total pension liability 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Covered payroll $ 111,004,019 $ 111,127,482 $ 97,373,080 $ 81,069,095 $ 71,924,747 $ 66,370,246 Net pension liability as a percentage of covered -employee payroll Notes to Schedule: This Schedule is presented to illustrate the requirements 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. 7.41% 7.22% 11.45% 16.63% 17.73% 14.82% 159 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 Six Fiscal Years (Unaudited) 2020 2019 2018 2017 2016 2015 Total pension liability Service cost $ 82,784 $ 69,391 $ 52,832 $ 45,464 $ 43,416 $ 77,022 Interest 385,782 369,771 320,492 365,280 353,121 345,755 Changes of benefit terms - - 460,951 - - Differences between expected and actual experience 26,620 78,475 10,440 (686,043) 99,869 - Changes of assumptions - 105,798 - Benefit payments, including refunds of member contributions (305,180) (308,761) (295,460) (332,554) (340,299) (311,388) Net change in total pension liability 190,006 208,876 655,053 (607,853) 156,107 111,389 Total pension liability - beginning 5,228,668 Total pension liability - ending 5,418,674 Plan fiduciary net position Contributions - employer Contributions - member Net investment income Benefit payments, including refunds of member contributions Net change in plan fiduciary net position 232,280 40,846 176,655 (305,180) 144,601 5,019,792 4,364,739 5,228,668 5,019,792 233,242 247,449 32,621 24,542 424,371 438,774 (308,761) (295,460) 381,473 415,305 4,972,592 4,816,485 4,705,096 4,364,739 4,972,592 4,816,485 269,054 291,087 291,968 19,316 19,838 23,377 364,079 (15,614) 338,281 (332,554) (340,299) (311,388) 319,895 (44,988) 342,238 Plan fiduciary net position - beginning 4,262,009 3,880,536 3,465,231 3,145,336 3,190,324 2,848,086 Plan fiduciary net position - ending 4,406,610 4,262,009 3,880,536 3,465,231 3,145,336 3,190,324 City's net position liability $ 1,012,064 $ 966,659 $ 1,139,256 $ 899,508 $ 1,827,256 $ 1,626,161 Plan fiduciary net position as a percentage of the total pension liability 81.32% 81.51% 77.30% 79.39% 63.25% 66.24% Covered payroll $ 320,720 $ 280,425 $ 225,148 $ 172,459 $ 164,547 $ 298,958 Net pension liability as a percentage of covered -employee payroll Notes to Schedule: This Schedule is presented to illustrate the requirements 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. 315.56% 344.71% 506.00% 521.58% 1110.48% 543.94% 160 Required Supplementary Information City of Miami, Florida Schedule of Changes in the Net Pension Liability and Related Ratios Elected Officers Retirement Trust (EORT) Last Seven Fiscal Years (Unaudited) 2020 2019 2018 2017 2016 2015 2014 Total pension liability Service cost $ - $ - $ - $ - $ 88,956 $ 98,028 $ 257,052 Interest 246,287 311,867 319,429 317,610 316,813 304,126 308,476 Differences between expected and actual experience 906,733 52,687 (199,276) 53,460 (2,221) (20,969) (250,718) Changes of assumptions 93,871 1,489,649 - - - 228,310 Benefit payments, including refunds of member contributions (319,771) (318,442) (325,800) (318,754) (263,320) (260,660) (261,135) Net change in total pension liability 927,120 1,535,761 (205,647) 52,316 140,228 348,835 53,675 Total pension liability - beginning 10,024,697 8,488,936 8,694,583 8,642,267 Total pension liability - ending 10,951,817 10,024,697 8,488,936 8,694,583 8,502,039 8,642,267 8,153,204 8,099,529 8,502,039 8,153,204 Plan fiduciary net position Contributions - employer 0* 366,358 553,471 406,911 860,089 551,222 Net investment income 132,455 125,407 47,166 54,780 42,971 61,789 (19,893) Benefit payments, including refunds of member contributions (319,771) (318,442) (325,800) (318,754) (263,320) (260,660) (261,135) Administrative expenses (2,400) (2,400) (2,400) (2,400) (2,400) (2,400) (2,400) Net change in plan fiduciary net position (189,716) 170,923 272,437 140,537 637,340 349,951 (283,428) Plan fiduciary net position - beginning Plan fiduciary net position - ending 7,546,162 7,375,239 7,102,802 6,962,265 6,324,925 5,974,974 6,258,402 $ 7,356,446 $ 7,546,162 $ 7,375,239 $ 7,102,802 $ 6,962,265 $ 6,324,925 $ 5,974,974 City's net position liability $ 3,595,371 S 2,478,535 $ 1,113,697 $ 1,591,781 $ 1,680,002 $ 2,177,114 $ 2,178,230 Plan fiduciary net position as a percentage of the total pension liability 67.17% 75.28% 86.88% 81.69% 80.56% 74.39% 73.28% Covered payroll $ - $ - $ - $ - $ 100,788 $ 103,194 $ 298,788 Net pension liability as a percentage of covered -employee payroll N/A N/A N/A N/A 1666.87% 2109.73% 729.02% Notes to Schedule: This Schedule is presented to illustrate the requirements 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. * Contribution of $568,910 for 2019 plan year was made on January 31, 2020. 161 City of Miami, Florida Schedule of Contributions - FIPO September 30, 2020 Last 10 Fiscal Years (Unaudited) FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 Actuarially determined contribution $ 67,564,414 $ 62,694,851 $ 56,999,866 $ 53,264,009 $ 48,672,615 Contributions made in relation to the actuarially determined contribution 67,564,414 62,694,851 56,999,866 53,264,009 48,672,615 Contribution deficiency (excess) $ - $ - $ $ $ Covered payroll $ 176,635,568 $ 168,059,448 $ 166,670,939 $ 141,497,840 $ 133,083,231 Contributions as a percentage of covered payroll 38.25% 37.31% 34.20% 37.64% 36.57% FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 Actuarially determined contribution $ 48,616,677 $ 47,305,679 $ 45,412,248 $ 47,418,316 $ 47,156,797 Contributions made in relation to the actuarially determined contribution 48,616,677 47,305,679 45,412,248 47,418,316 47,156,797 Contribution deficiency (excess) $ - $ - $ $ $ Covered -payroll $ 106,278,378 $ 93,705,765 $ 85,222,842 $ 82,205,838 $ 82,164,617 Contributions as a percentage of covered -payroll 45.74% 50.48% 53.29% 57.68% 57.39% The following actuarial methods and assumptions were used to determine contribution rates for Fiscal Year 2020, 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, 2019 Aggregate Cost 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 2.60% 1.5% for promotions and other increase plus salary merit $2,181,634 City of Miami, Florida Schedule of Contributions - GESE September 30, 2020 Last 10 Fiscal Years (Unaudited) 2020 FY 2019 FY 2018 FY 2017 FY 2016 Actuarially determined contribution $ 49,923,146 $ 43,526,929 $ 40,879,285 $ 34,355,719 $ 32,881,500 Contributions made in relation to the actuarially determined contribution 49,923,146 43,526,929 40,879,285 34,355,719 32,881,500 Contribution deficiency (excess) $ - $ - $ - $ - $ Covered payroll $ 122,643,648 $ 111,004,019 $ 111,127,482 $ 97,373,080 $ 81,069,095 Contributions as a percentage of covered payroll 40.71% 39.21% 36.79% 35.28% 40.56% FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 Actuarially determined contribution $ 33,036,318 $ 30,710,096 $ 25,568,193 $ 25,784,849 $ 20,420,995 Contributions made in relation to the actuarially determined contribution 33,036,318 30,710,096 25,568,193 25,784,849 20,420,995 Contribution deficiency (excess) $ - $ - $ - $ - $ Covered -payroll $ 71,924,747 $ 66,370,246 $ 64,391,195 $ 65,509,421 $ 70,825,712 Contributions as a percentage of covered -payroll 45.93% 46.27% 39.71% 39.36% 28.83% The following actuarial methods and assumptions were used to determine contribution rates for Fiscal Year 2020, as 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 Cost of living adjustments October 1, 2019 Entry Age Normal Level percent, closed 3 to 20 years 5-Year Smoothed Market 7.6% 4% to 8.75% 3.0% 3.5% 4% per year, with $54 per year minimum and $400 per year maximum 163 City of Miami, Florida Schedule of Contributions - GESE Excess Benefit September 30, 2020 Last 10 Fiscal Years (Unaudited) 2020 FY 2019 FY 2018 FY 2017 FY 2016 Actuarially determined contribution $ 572,194 $ 631,547 $ 694,643 $ 850,429 $ 914,859 Contributions made in relation to the actuarially determined contribution 417,755 477,892 587,959 674,572 680,534 Contribution deficiency (excess) $ 154,439 $ 153,655 $ 106,684 $ 175,857 $ 234,325 Covered payroll $ 122,643,648 $ 111,004,019 $ 111,127,482 $ 97,373,080 $ 81,069,095 Contributions as a percentage of covered payroll 0.34% 0.43% 0.53% 0.69% 0.84% FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 Actuarially determined contribution $ 947,666 $ 722,999 $ 665,659 $ 606,589 $ 585,357 Contributions made in relation to the actuarially determined contribution 648,302 561,805 523,398 514,908 406,243 Contribution deficiency (excess) $ 299,364 $ 161,194 $ 142,261 $ 91,681 $ 179,114 Covered -payroll $ 71,924,747 $ 66,370,246 $ 64,391,195 $ 65,509,421 $ 70,825,712 Contributions as a percentage of covered -payroll 0.90% 0.85% 0.81% 0.79% 0.57% The following actuarial methods and assumptions were used to determine contribution rates for Fiscal Year 2020, 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, 2019 Entry Age Normal Level dollar amounts, closed 11 years Not Applicable, the plan has no assets for investment 7.60% Variable By Years of Service 3.5% 164 City of Miami, Florida Schedule of Contributions - GESE Staff September 30, 2020 Last 10 Fiscal Years (Unaudited) 2020 FY 2019 FY 2018 FY 2017 FY 2016 Actuarially determined contribution $ 221,616 $ 232,280 $ 233,242 $ 247,449 $ 269,054 Contributions made in relation to the actuarially determined contribution 221,616 232,280 233,242 247,449 269,054 Contribution deficiency (excess) $ - $ - $ - $ - $ - Covered payroll $ 387,761 $ 320,720 $ 280,425 $ 225,148 $ 172,459 Contributions as a percentage of covered payroll 57.15% 72.42% 83.17% 109.91% 156.01% FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 Actuarially determined contribution $ 291,087 $ 291,968 $ 219,774 $ 226,793 $ 164,490 Contributions made in relation to the actuarially determined contribution 291,087 291,968 219,774 226,793 164,490 Contribution deficiency (excess) $ $ - $ - $ - $ - Covered -payroll $ 164,547 $ 298,958 $ 354,937 $ 735,056 $ 842,955 Contributions as a percentage of covered -payroll 176.90% 97.66% 61.92% 30.85% 19.51% The following actuarial methods and assumptions were used to determine contribution rates for Fiscal Year 2020, 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 Cost of living adjustments October 1, 2019 Entry Age Normal Level dollar amounts, closed Ito 17years 3 year smoothed market 7.60% 6.00% 3.50% 4% per year, with $54 per year minimum and $400 per year maximum 165 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, 2020 Last 10 Fiscal Years (Unaudited) 2020 FY 2019 $ 567,727 $ 366,358 568,910 366,358 (1,183) $ Not Applicable Not Applicable FY 2018 $ 463,386 553,471 FY 2017 $ 406,911 406,911 $ (90,085) $ Not Applicable FY 2016 $ 469,450 860,089 $ (390,639) $ 100,788 Not Applicable 853.36% 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 2015 $ 390,314 551,222 $ (160,908) $ 103,194 534.16% FY 2014 $ 570,348 $ 570,348 $ 298,788 0.00% The following actuarial methods and assumptions were used to determine contribution rates for Fiscal Year 2020, 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, 2019 Projected Unit Credit Cost Method Level dollar, closed 5 to 10 years 10 years Market Value 2.50% None None 2.25% None FY 2013 $ 488,713 1,054,965 $ (566,252) $ 335,952 314.02% FY 2012 FY 2011 $ 566,252 $ 431,995 432,170 $ 134,082 $ 209,260 206.52% 962,677 $ (530,682) $ 209,260 460.04% 166 Year Ended September 30, 2020 2019 2018 2017 2016 2015 City of Miami, Florida Schedule of Investment Returns September 30, 2020 Last Six Fiscal Years (Unaudited) Annual money -weighted rate of return, net of investment expense Firefighters and Police (FIPO) 6.17% 5.39% 7.48% 9.22% 9.70% 1.84% General and Sanitation Employees (GESE) 7.10% 9.30% 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) 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) 4.20% 11.20% 12.90% 11.80% -0.40% 12.10% Elected Officers Retirement Trust (EORT) 1.80% 1.74% 0.68% 0.81% 0.65% 0.93% NON-MAJ FUNDS R GOVERNMENTAL 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. 168 NON -MAJOR GOVERNMENTAL FUNDS 41 . • • SPECIAL REVENUE FUNDS Economic Development & Planning Services To account for the operations of the Economic Development and Planning Services. NET Offices To account for the operations of the City's Neighborhood Enhancement Teams (NET Offices). Parks & Recreation Services To account for the operations of the Parks and Recreation Services. Police Services To account for the proceeds of various grants from Local, State, and Federal Agencies that are expended for police activities. Law Enforcement Trust To account for confiscated monies awarded to the City for law enforcement related expenditures as stipulated by State Statutes. Public Works Services To account for the proceeds granted from Local and State Agencies to be used for maintenance of streets, highways, sidewalks and infrastructure. City Clerk Services To account for the operations of the Passport Facility, Municipal Archives and Records, and related programs. Fire Rescue Services To account for the grants revenues and expenditures which supplement the City's emergency Fire Rescue operations 169 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. 170 NON-MAJO GOVERNME DEBT SERVICE FUNDS Debt Service Funds are used to account for the accumulation of resources, payments of general obligation bond principal, interest from government resources, special obligation bond principal and interest from pledged revenues when the government is obligated in some manner for the payment. General Obligation Bonds To account for monies for payment of principal, interest, and other costs related to various issues of long-term general obligation bonds. Debt Service is financed primarily by an ad valorem tax. 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 Bond To account for monies used for the payment of principal,interest, and other costs related to various special obligation and revenue bonds and loans. 171 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. 172 City of Miami, Florida Combining Balance Sheet Non -Major Governmental Funds September 30, 2020 Homeless Community Omni CRA Midtown CRA SEOPW CRA Program Development Assets Pooled Cash, Cash Equivalents, and Investments $ 17,327,871 $ 4,118,048 $ 40,415,716 $ 269,984 $ 17,231,447 Restricted Cash, Cash Equivalents, and Investments - - - Receivables (Net of Allowance for Uncollectibles): Loans Receivable - - 1,794 Accounts Receivable - - 606 Property Tax - - - Due From Other Governments - 326,792 4,682 1,953,563 Accrued Interest 50,692 87,977 7,388 Prepaids - - - Other Assets - 567,926 - Total Assets $ 17,378,563 $ 4,118,048 $ 41,398,411 $ 274,666 $ 19,194,798 Liabilities, Fund Balances and Deferred Inflows of Resources Liabilities: Accounts Payable and Accrued Liaibilities Other Liabilities Due to Other Funds Advances From Other Funds Due to Other Governments Unearned Revenue Deposits Total Liabilities Deferred Inflows of Resources Unavailable Revenue Total Deferred Inflows of Resources Fund Balances (Deficit): Non -Spendable Fund Balance Non -Spendable Spendable Fund Balance Restricted Committed Assigned Unassigned (deficit) Total Fund Balances (Deficit) Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficit) $ 95,955 $ - $ 2,658,627 $ 64,068 $ 2,516,120 4,224 - - 2,497,137 14,961 96,715 95,955 2,673,588 64,068 5,114,196 17,282,608 4,118,048 38,724,823 210,598 7,881,161 6,199,441 17,282,608 4,118,048 38,724,823 210,598 14,080,602 $ 17,378,563 $ 4,118,048 $ 41,398,411 $ 274,666 $ 19,194,798 173 City of Miami, Florida Combining Balance Sheet Non -Major Governmental Funds September 30, 2020 Special Revenue Funds Housing Choice Vouchers SHIP Economic Development Convention & Planning Center Services NET Offices Assets Pooled Cash, Cash Equivalents, and Investments $ 321,678 $ 1,543,939 $ 14,301 $ 23,469,740 $ 20,354 Restricted Cash, Cash Equivalents, and Investments - - - Receivables (Net of Allowance for Uncollectibles): Loans Receivable - Accounts Receivable 27 - 1,000 Property Tax - - - Due From Other Governments - - - Accrued Interest - 1,478 - Prepaids - - - Other Assets - - - Total Assets $ 321,705 $ 1,545,417 $ 14,301 $ 23,470,740 $ 20,354 Liabilities, Fund Balances and Deferred Inflows of Resources Liabilities: Accounts Payable and Accrued Liaibilities $ 14,068 $ 18,973 $ 605 $ 160,341 $ 9,228 Other Liabilities - - - Due to Other Funds - - - Advances From Other Funds Due to Other Governments Unearned Revenue Deposits - - - 324 Total Liabilities 14,068 18,973 605 160,341 9,552 Deferred Inflows of Resources Unavailable Revenue Total Deferred Inflows of Resources Fund Balances (Deficit): Non -Spendable Fund Balance Non -Spendable Spendable Fund Balance Restricted Committed Assigned Unassigned (deficit) 307,637 1,526,444 13,696 178,773 2,429 21,353,840 1,777,786 8,373 Total Fund Balances (Deficit) 307,637 1,526,444 13,696 23,310,399 10,802 Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficit) $ 321,705 $ 1,545,417 $ 14,301 $ 23,470,740 $ 20,354 174 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, 2020 Special Revenue Funds Parks & Law Recreation Enforcement Public Works City Clerk Services Police Services Trust Services Services $ 3,246,909 $ 4,684,948 $ 930,077 $ 3,243,900 $ 1,491,626 255 878,306 36,310 587,888 5,825 3,418 286,597 485 $ 3,283,474 $ 6,156,967 $ 933,495 $ 3,530,982 $ 1,491,626 Liabilities: Accounts Payable and Accrued Liaibilities $ 5,862 $ 331,600 $ 594 $ 665,739 $ 2,813 Other Liabilities - - - Due to Other Funds - 694,385 - Advances From Other Funds - - - Due to Other Governments - - - Unearned Revenue - - 55,002 Deposits - - 112,413 - Total Liabilities 5,862 1,025,985 113,007 720,741 2,813 Deferred Inflows of Resources Unavailable Revenue - 358,601 Total Deferred Inflows of Resources - 358,601 Fund Balances (Deficit): Non -Spendable Fund Balance Non -Spendable Spendable Fund Balance Restricted 1,312,436 4,165,131 820,488 2,804,586 Committed 1,965,176 239,406 5,655 1,488,813 Assigned - 367,844 - Unassigned (deficit) Total Fund Balances (Deficit) 3,277,612 4,772,381 820,488 2,810,241 1,488,813 Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficit) $ 3,283,474 $ 6,156,967 $ 933,495 $ 3,530,982 $ 1,491,626 175 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, 2020 Special Revenue Funds Miami General Departmental Ballpark Fire Rescue Special Improvement Transportation Parking Services Revenues Initiatives & Transit Facilities $ 1,106,611 $ 4,282,451 $ 16,044,065 $ 6,812,859 $ 1,251,621 2,044,821 105 21,898 167,968 90,901 93,807 3,600,485 20,802 $ 3,173,435 $ 4,450,419 $ 16,228,773 $ 10,434,146 $ 1,251,621 Liabilities: Accounts Payable and Accrued Liaibilities $ 812,531 $ 195,853 $ 313,301 $ 1,726,068 $ 331,690 Other Liabilities - - - Due to Other Funds 694,862 - - Advances From Other Funds Due to Other Governments Unearned Revenue Deposits Total Liabilities 1,507,393 195,853 313,301 1,726,068 331,690 Deferred Inflows of Resources Unavailable Revenue Total Deferred Inflows of Resources 1,300,000 1,300,000 Fund Balances (Deficit): Non -Spendable Fund Balance Non -Spendable 21,897 Spendable Fund Balance Restricted 1,378,423 1,040,368 3,636,814 7,408,078 919,931 Committed 265,722 3,202,459 12,278,658 - Assigned - 11,739 - Unassigned (deficit) - - - Total Fund Balances (Deficit) 1,666,042 4,254,566 15,915,472 7,408,078 919,931 Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficit) $ 3,173,435 $ 4,450,419 $ 16,228,773 $ 10,434,146 $ 1,251,621 176 Assets Pooled Cash, Cash Equivalents, and Investments Restricted Cash, Cash Equivalents, and Investments Receivables (Net of Allowance for Uncollectibles): Loans Receivable Accounts Receivable Property Tax Due From Other Governments Accrued Interest Prepaids Other Assets Total Assets Liabilities, Fund Balances and Deferred Inflows of Resources Liabilities: Accounts Payable and Accrued Liaibilities Other Liabilities Due to Other Funds Advances From Other Funds Due to Other Governments Unearned Revenue Deposits Total Liabilities Deferred Inflows of Resources Unavailable Revenue Total Deferred Inflows of Resources Fund Balances (Deficit): Non -Spendable Fund Balance Non -Spendable Spendable Fund Balance Restricted Committed Assigned Unassigned (deficit) Total Fund Balances (Deficit) Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficit) City of Miami, Florida Combining Balance Sheet Non -Major Governmental Funds September 30, 2020 Special Revenue Funds Liberty City Revitalization Trust $ 635,899 71 Virginia Key Bayfront Park Beach Park Solid Waste Land Acquisition Total Special Trust RecyclingTrust Trust Fund Revenue $ 639,123 $ 1,099,376 $ 1,658,000 $ 151,860,543 35,212 - 35,212 1,794 1,257,692 8,816,316 1,547 - 179,788 $ 635,970 $ 674,335 21,898 567,926 $ 1,100,923 $ 1,658,000 $ 162,741,169 $ 1,853 $ 17,343 $ 1,853 17,343 634,117 656,992 1,000,000 100,923 1,658,000 634,117 $ 635,970 656,992 $ 674,335 1,100,923 1,658,000 $ 9,943,232 4,224 1,389,247 2,497,137 55,002 224,413 14,113,255 1,658,601 1,658,601 1,021,897 94,453,816 47,656,162 3,837,438 146,969,313 $ 1,100,923 $ 1,658,000 $ 162,741,169 177 City of Miami, Florida Combining Balance Sheet Non -Major Governmental Funds September 30, 2020 Capital Debt Service Projects Funds Funds CRA Other General Special Community Obligation Obligation Special Obligation Total Debt Redevelopment Bonds Bonds Bonds Service Agency Assets Pooled Cash, Cash Equivalents, and Investments $ - $ - $ $ - $ - Restricted Cash, Cash Equivalents, and Investments 10,360,046 2,511,913 9,930,063 22,802,022 11,771,319 Receivables (Net of Allowance for Uncollectibles): Loans Receivable - - - - Accounts Receivable 98,524 - 427,063 525,587 - Property Tax 316,680 - 316,680 - Due From Other Governments - - - - Accrued Interest - - - - Prepaids Other Assets Total Assets $ 10,775,250 $ 2,511,913 $ 10,357,126 $ 23,644,289 $ 11,771,319 Liabilities, Fund Balances and Deferred lntlows of Resources Liabilities: Accounts Payable and Accrued Liaibilities $ - $ - $ 27,500 $ 27,500 $ Other Liabilities - - - Due to Other Funds - - - Advances From Other Funds - - Due to Other Governments - - Unearned Revenue - - Deposits - - Total Liabilities - - 27,500 27,500 Deferred Inflows of Resources Unavailable Revenue Total Deferred lntlows of Resources Fund Balances (Deficit): Non -Spendable Fund Balance Non -Spendable Spendable Fund Balance Restricted Committed Assigned Unassigned (deficit) Total Fund Balances (Deficit) Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficit) 316,680 - 316,680 316,680 - 316,680 10,458,570 2,511,913 10,329,626 23,300,109 11,771,319 10,458,570 2,511,913 10,329,626 23,300,109 11,771,319 $ 10,775,250 $ 2,511,913 $ 10,357,126 $ 23,644,289 $ 11,771,319 178 City of Miami, Florida Combining Balance Sheet Non -Major Governmental Funds September 30, 2020 Capital Projects Funds Total Non - General Major TransportationObligation Bonds Total Capital Governmental & Transit Projects Projects Funds Assets Pooled Cash, Cash Equivalents, and Investments $ - $ - $ - $ 151,860,543 Restricted Cash, Cash Equivalents, and Investments 20,785,142 1,531,901 34,088,362 56,925,596 Receivables (Net of Allowance for Uncollectibles): Loans Receivable - - - 1,794 Accounts Receivable - - - 1,783,279 Property Tax - - - 316,680 Due From Other Governments - - - 8,816,316 Accrued Interest - 15,013 15,013 194,801 Prepaids - - - 21,898 Other Assets - - - 567,926 Total Assets $ 20,785,142 $ 1,546,914 $ 34,103,375 $ 220,488,833 Liabilities, Fund Balances and Deferred Inflows of Resources Liabilities: Accounts Payable and Accrued Liaibilities $ 611,684 $ 1,666,132 $ 2,277,816 $ 12,248,548 Other Liabilities - - - 4,224 Due to Other Funds - - - 1,389,247 Advances From Other Funds - 6,999,366 6,999,366 6,999,366 Due to Other Governments - - - 2,497,137 Unearned Revenue - - - 55,002 Deposits - - - 224,413 Total Liabilities 611,684 8,665,498 9,277,182 23,417,937 Deferred Inflows of Resources Unavailable Revenue Total Deferred Inflows of Resources 1,975,281 1,975,281 Fund Balances (Deficit): Non -Spendable Fund Balance Non -Spendable - - - 1,021,897 Spendable Fund Balance Restricted 20,173,458 1,546,914 33,491,691 151,245,616 Committed - - - 47,656,162 Assigned - - - 3,837,438 Unassigned (deficit) - (8,665,498) (8,665,498) (8,665,498) Total Fund Balances (Deficit) 20,173,458 (7,118,584) 24,826,193 195,095,615 Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficit) $ 20,785,142 $ 1,546,914 $ 34,103,375 $ 220,488,833 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, 2020 Special Revenue Funds Homeless Community Omni CRA Midtown CRA SEOPW CRA Program Development Revenues Property Taxes $ 29,406,715 $ 8,883,704 $ 20,130,669 $ - $ Licenses and Permits - - - 40 Fines and Forfeitures - - - Intergovernmental Revenues - 849,478 1,779,635 23,467,799 Charges for Services - - - 110,786 Investment Earnings (Loss) 112,830 215,567 - 20,995 Other 4,665,821 2,066,556 29,788 89,878 Total Revenues 34,185,366 8,883,704 23,262,270 1,809,423 23,689,498 Expenditures Current Operating: General Government - - 1,972,112 Planning and Development - - - Community Development - - - 24,254,854 Community Redevelpment Areas 17,548,117 4,676,819 15,182,896 Public Works - - - Public Safety - - - Public Facilities Parks and Recreation Debt Service: Principal Interest and Other Charges - Capital Outlay 1,147 6,240 - 192,685 Total Expenditures 17,549,264 4,676,819 15,189,136 1,972,112 24,447,539 Excess (Deficiency) of Revenues Over (Under) Expenditures 16,636,102 4,206,885 8,073,134 (162,689) (758,041) Other Financing Sources (Uses) Transfers In 162,022 - 35,000 1,878,000 Transfers Out (7,064,409) (157,022) (8,752,443) Proceeds from Sale of Property - - 13,551,817 - Payment To Escrow Agent For Refunding - - - Issuance of Debt Total Other Financing Sources (Uses) (6,902,387) (157,022) 4,799,374 35,000 1,878,000 Net Changes in Fund Balances (Deficit) 9,733,715 4,049,863 12,872,508 (127,689) 1,119,959 Fund Balances (Deficit) - Beginning 7,548,893 68,185 25,852,315 338,287 12,960,643 Fund Balances (Deficit) - Ending $ 17,282,608 $ 4,118,048 $ 38,724,823 $ 210,598 $ 14,080,602 180 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, 2020 Special Revenue Funds Housing Choice Vouchers SHIP Economic Development Convention & Planning Center Services NET Offices Revenues Property Taxes $ - $ - $ - $ - $ Licenses and Permits - - 1,748,488 Fines and Forfeitures - - - Intergovernmental Revenues 2,446,363 512,815 - - Charges for Services - - 2,546,353 Investment Earnings (Loss) 138 9,573 - 1,105 Other 59,991 108,732 - 2,980,692 Total Revenues 2,506,492 631,120 - 7,276,638 Expenditures Current Operating: General Government - - 79,370 Planning and Development - - 720,311 Community Development 2,483,078 723,998 - - Community Redevelpment Areas - - 187 Public Works - - 243,232 Public Safety - - - Public Facilities - - - Parks and Recreation - - - Debt Service: Principal - - - Interest and Other Charges - - - Capital Outlay - - 46,149 Total Expenditures 2,483,078 723,998 - 1,089,249 Excess (Deficiency) of Revenues Over (Under) Expenditures 23,414 (92,878) - 6,187,389 Other Financing Sources (Uses) Transfers In - - - Transfers Out - (471,000) (261,000) (232,000) Proceeds from Sale of Property - - - Payment To Escrow Agent For Refunding - - - Issuance of Debt - - - Total Other Financing Sources (Uses) - (471,000) (261,000) (232,000) Net Changes in Fund Balances (Deficit) 23,414 (92,878) (471,000) 5,926,389 (232,000) Fund Balances (Deficit) - Beginning 284,223 1,619,322 484,696 17,384,010 242,802 Fund Balances (Deficit) - Ending $ 307,637 $ 1,526,444 $ 13,696 $ 23,310,399 $ 10,802 181 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, 2020 Special Revenue Funds Parks & Law Recreation Enforcement Public Works City Clerk Services Police Services Trust Services Services Revenues Property Taxes $ - $ $ - $ - $ Licenses and Permits 96,224 - 5,561,974 Fines and Forfeitures - 316,228 - Intergovernmental Revenues 418,078 5,859,604 - - Charges for Services - 256,326 - 4,352 163,425 Investment Earnings (Loss) - 16,889 5,811 - Other 1,029 49,306 - 37,631 Total Revenues 515,331 6,182,125 322,039 5,603,957 163,425 Expenditures Current Operating: General Government - - - 139,096 Planning and Development - - - Community Development - - - Community Redevelpment Areas - - - Public Works - - 4,201,533 Public Safety - 9,034,132 166,503 Public Facilities - Parks and Recreation 275,061 Debt Service: Principal - - - Interest and Other Charges - - - Capital Outlay 1,058 471,609 - 31,447 1,464 Total Expenditures 276,119 9,505,741 166,503 4,232,980 140,560 Excess (Deficiency) of Revenues Over (Under) Expenditures 239,212 (3,323,616) 155,536 1,370,977 22,865 Other Financing Sources (Uses) Transfers In 36,000 1,634,000 - - 48,000 Transfers Out - - (2,383,000) Proceeds from Sale of Property - - - Payment To Escrow Agent For Refunding - - - Issuance of Debt - - - Total Other Financing Sources (Uses) 36,000 1,634,000 - (2,383,000) 48,000 Net Changes in Fund Balances (Deficit) 275,212 (1,689,616) 155,536 (1,012,023) 70,865 Fund Balances (Deficit) - Beginning 3,002,400 6,461,997 664,952 3,822,264 1,417,948 Fund Balances (Deficit) - Ending $ 3,277,612 $ 4,772,381 $ 820,488 $ 2,810,241 $ 1,488,813 182 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, 2020 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 - 1,217,720 - Intergovernmental Revenues 6,406,057 523,645 1,065,598 19,412,965 Charges for Services 2,450 - - 721,608 Investment Earnings (Loss) - 7,154 82,087 23,709 Other 824 648,182 - - 86,990 Total Revenues 6,409,331 1,178,981 2,365,405 19,436,674 808,598 Expenditures Current Operating: General Government - 20,257 3,510,126 149,282 Planning and Development - 529,421 - Community Development - - - Community Redevelpment Areas - - - Public Works - 665,173 26,441 10,448,044 Public Safety 7,547,221 - - Public Facilities - - - 2,219,188 Parks and Recreation - - - Debt Service: Principal - - - Interest and Other Charges - - - Capital Outlay 146,571 29,270 2,921 Total Expenditures 7,693,792 685,430 4,095,258 10,600,247 2,219,188 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,284,461) 493,551 (1,729,853) 8,836,427 (1,410,590) Other Financing Sources (Uses) Transfers In 882,000 1,035,000 6,282,000 Transfers Out - (962,000) (4,469,000) (4,830,000) Proceeds from Sale of Property - - - Payment To Escrow Agent For Refunding - - - Issuance of Debt - - - Total Other Financing Sources (Uses) 882,000 1,035,000 5,320,000 (4,469,000) (4,830,000) Net Changes in Fund Balances (Deficit) (402,461) 1,528,551 3,590,147 4,367,427 (6,240,590) Fund Balances (Deficit) - Beginning 2,068,503 2,726,015 12,325,325 3,040,651 7,160,521 Fund Balances (Deficit) - Ending $ 1,666,042 $ 4,254,566 $ 15,915,472 $ 7,408,078 $ 919,931 183 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, 2020 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 $ - $ - $ - $ - $ 58,421,088 Licenses and Permits - - - 7,406,726 Fines and Forfeitures - - - 1,533,948 Intergovernmental Revenues 399,000 427,842 - - 63,568,879 Charges for Services - 164,844 - - 3,970,144 Investment Earnings (Loss) - (1,718) 6,802 - 500,942 Other 14,238 254,784 - - 11,094,442 Total Revenues 413,238 845,752 6,802 - 146,496,169 Expenditures Current Operating: General Government - - - 5,870,243 Planning and Development - - - 1,249,732 Community Development - - - 27,461,930 Community RedevelpmentAreas 416,837 - - 37,824,856 Public Works - 25,497 - 15,609,920 Public Safety - - - 16,747,856 Public Facilities - - - 2,219,188 Parks and Recreation - 1,114,056 - - 1,389,117 Debt Service: Principal - - - - Interest and Other Charges - - - - Capital Outlay - 228,706 - - 1,159,267 Total Expenditures 416,837 1,342,762 25,497 - 109,532,109 Excess (Deficiency) of Revenues Over (Under) Expenditures (3,599) (497,010) (18,695) - 36,964,060 Other Financing Sources (Uses) Transfers In - - 119,000 12,111,022 Transfers Out - - - (29,581,874) Proceeds from Sale of Property - - - 13,551,817 Payment To Escrow Agent For Refunding - - - - Issuance of Debt - - - - Total Other Financing Sources (Uses) - - 119,000 (3,919,035) Net Changes in Fund Balances (Deficit) (3,599) (497,010) (18,695) 119,000 33,045,025 Fund Balances (Deficit) - Beginning 637,716 1,154,002 1,119,618 1,539,000 113,924,288 Fund Balances (Deficit) - Ending $ 634,117 $ 656,992 $ 1,100,923 $ 1,658,000 $ 146,969,313 184 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, 2020 Debt Service Funds Capital Projects Funds CRA Other General Special Special Community Obligation Obligation Obligation Total Debt Redevelopment Bonds Bonds Bonds Service Agency Revenues Property Taxes $ 23,849,213 $ - $ - $ 23,849,213 $ - Licenses and Permits - - - - Fines and Forfeitures - - - - Intergovernmental Revenues - 4,083,334 4,083,334 - Charges for Services - - - - Investment Earnings (Loss) - 8,771 17,067 25,838 119,538 Other - 10,401 10,401 - Total Revenues 23,849,213 8,771 4,110,802 27,968,786 119,538 Expenditures Current Operating: General Government 7,598 376,600 384,198 Planning and Development - - - Community Development - - - - Community Redevelpment Areas - - - 9,098,726 Public Works - - - - Public Safety - - - - Public Facilities - - - - Parks and Recreation - - - - Debt Service: Principal 20,075,000 4,550,000 38,139,274 62,764,274 Interest and Other Charges 2,957,634 2,779,659 20,240,029 25,977,322 Capital Outlay - - - - Total Expenditures 23,040,232 7,329,659 58,755,903 89,125,794 9,098,726 Excess (Deficiency) of Revenues Over (Under) Expenditures 808,981 (7,320,888) (54,645,101) (61,157,008) (8,979,188) Other Financing Sources (Uses) Transfers In - 7,329,659 44,648,000 51,977,659 52,500 Transfers Out - (52,500) - (52,500) (5,000) Proceeds from Sale of Property - - - - Payment To Escrow Agent For Refunding - - (103,575,001) (103,575,001) - Issuance of Debt - - 103,640,250 103,640,250 - Total Other Financing Sources (Uses) - 7,277,159 44,713,249 51,990,408 47,500 Net Changes in Fund Balances (Deficit) 808,981 (43,729) (9,931,852) (9,166,600) (8,931,688) Fund Balances (Deficit) - Beginning 9,649,589 2,555,642 20,261,478 32,466,709 20,703,007 Fund Balances (Deficit) - Ending $ 10,458,570 $ 2,511,913 $ 10,329,626 $ 23,300,109 $ 11,771,319 185 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, 2020 Capital Projects Funds Total Non - General Major Transportation Obligation Total Capital Governmental & Transit Bonds Projects Projects Funds Revenues Property Taxes $ - $ - $ - $ 82,270,301 Licenses and Permits - - - 7,406,726 Fines and Forfeitures - - - 1,533,948 Intergovernmental Revenues - - - 67,652,213 Charges for Services - - - 3,970,144 Investment Earnings (Loss) 126,406 - 245,944 772,724 Other 96 (1) 95 11,104,938 Total Revenues 126,502 (1) 246,039 174,710,994 Expenditures Current Operating: General Government - - - 6,254,441 Planning and Development 197 - 197 1,249,929 Community Development - - - 27,461,930 Community RedevelpmentAreas - - 9,098,726 46,923,582 Public Works 575,249 - 575,249 16,185,169 Public Safety - - - 16,747,856 Public Facilities - - - 2,219,188 Parks and Recreation - - - 1,389,117 Debt Service: Principal - - - 62,764,274 Interest and Other Charges - - - 25,977,322 Capital Outlay 6,225,309 6,841,509 13,066,818 14,226,085 Total Expenditures 6,800,755 6,841,509 22,740,990 221,398,893 Excess (Deficiency) of Revenues Over (Under) Expenditures (6,674,253) (6,841,510) (22,494,951) (46,687,899) Other Financing Sources (Uses) Transfers In 3,499,000 - 3,551,500 67,640,181 Transfers Out - - (5,000) (29,639,374) Proceeds from Sale of Property - - - 13,551,817 Payment To Escrow Agent For Refunding - - - (103,575,001) Issuance of Debt - - - 103,640,250 Total Other Financing Sources (Uses) 3,499,000 - 3,546,500 51,617,873 Net Changes in Fund Balances (Deficit) (3,175,253) (6,841,510) (18,948,451) 4,929,974 Fund Balances (Deficit) - Beginning 23,348,711 (277,074) 43,774,644 190,165,641 Fund Balances (Deficit) - Ending $ 20,173,458 $ (7,118,584) $ 24,826,193 $ 195,095,615 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, 2020 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Property Taxes $ 28,300,014 $ 28,300,014 $ 29,406,715 $ 1,106,701 Intergovernmental Revenues 1,132,001 1,132,001 - (1,132,001) Investment Earnings (Loss) - 112,830 112,830 Other 12,768,787 12,768,787 4,665,821 (8,102,966) Total Revenues 42,200,802 42,200,802 34,185,366 (8,015,436) Expenditures: Community Redevelpment Areas 44,455,641 44,455,641 17,548,117 26,907,524 Capital Outlay 24,000 24,000 1,147 22,853 Total Expenditures 44,479,641 44,479,641 17,549,264 26,930,377 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 (2,278,839) (2,278,839) 11,844,589 (9,565,750) 11,844,589 (9,565,750) 2,278,839 2,278,839 16,636,102 18,914,941 162,022 (7,064,409) (11,682,567) 2,501,341 (6,902,387) (9,181,226) 9,733,715 9,733,715 Fund Balance - Beginning of Year - - 7,548,893 7,548,893 Fund Balance - End of Year $ $ - $ 17,282,608 $ 17,282,608 187 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, 2020 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Property Taxes $ 8,883,704 $ 8,883,704 $ 8,883,704 $ Total Revenues 8,883,704 8,883,704 8,883,704 Expenditures: Community Redevelpment Areas 8,794,867 8,794,867 Total Expenditures 8,794,867 8,794,867 Excess (Deficiency) of Revenues Over (Under) Expenditures 88,837 88,837 4,676,819 4,118,048 4,676,819 4,118,048 4,206,885 4,118,048 Other Financing Sources (Uses): Transfers Out (88,837) (88,837) (157,022) (68,185) Total Other Financing Sources (Uses) (88,837) (88,837) (157,022) (68,185) Net Change in Fund Balance 4,049,863 4,049,863 Fund Balance - Beginning of Year - - 68,185 68,185 Fund Balance - End of Year $ $ - $ 4,118,048 $ 4,118,048 188 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, 2020 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Property Taxes $ 20,130,884 $ 20,130,884 $ 20,130,669 $ (215) Intergovernmental Revenues 774,857 774,857 849,478 74,621 Investment Earnings (Loss) - 215,567 215,567 Other 45,367,500 45,367,500 2,066,556 (43,300,944) Total Revenues 66,273,241 66,273,241 23,262,270 (43,010,971) Expenditures: Community Redevelpment Areas 44,863,353 44,863,353 15,182,896 29,680,457 Capital Outlay 2,453,794 2,453,794 6,240 2,447,554 Total Expenditures 47,317,147 47,317,147 15,189,136 32,128,011 Excess (Deficiency) of Revenues Over (Under) Expenditures 18,956,094 18,956,094 8,073,134 (10,882,960) Other Financing Sources (Uses): Transfers Out Proceeds from Sale of Property Total Other Financing Sources (Uses) Net Change in Fund Balance (18,956,094) (18,956,094) (18,956,094) (8,752,443) 10,203,651 13,551,817 13,551,817 (18,956,094) 4,799,374 23,755,468 12,872,508 12,872,508 Fund Balance - Beginning of Year - 25,852,315 25,852,315 Fund Balance - End of Year $ $ - $ 38,724,823 $ 38,724,823 189 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, 2020 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 2,535,000 $ 2,535,000 $ 1,779,635 $ (755,365) Other 155,000 654,250 29,788 (624,462) Total Revenues 2,690,000 3,189,250 1,809,423 (1,379,827) Expenditures: General Government 2,725,000 3,224,250 1,972,112 1,252,138 Total Expenditures 2,725,000 3,224,250 1,972,112 1,252,138 Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers In Total Other Financing Sources (Uses) Net Change in Fund Balance (35,000) (35,000) (162,689) (127,689) 35,000 35,000 35,000 35,000 35,000 35,000 (127,689) (127,689) Fund Balance - Beginning of Year - 338,287 338,287 Fund Balance - End of Year $ $ - $ 210,598 $ 210,598 190 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, 2020 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Licenses and Permits $ $ - $ 40 $ 40 Intergovernmental Revenues 24,508,000 26,087,659 23,467,799 (2,619,860) Charges for Services - 110,786 110,786 Investment Earnings (Loss) - 20,995 20,995 Other 21,987,000 21,987,000 89,878 (21,897,122) Total Revenues 46,495,000 48,074,659 23,689,498 (24,385,161) Expenditures: Community Development 48,373,000 49,406,659 24,254,854 25,151,805 Capital Outlay 546,000 192,685 353,315 Total Expenditures 48,373,000 49,952,659 24,447,539 25,505,120 Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers In Total Other Financing Sources (Uses) (1,878,000) (1,878,000) (758,041) 1,119,959 1,878,000 1,878,000 1,878,000 1,878,000 1,878,000 1,878,000 Net Change in Fund Balance - 1,119,959 1,119,959 Fund Balance - Beginning of Year - - 12,960,643 12,960,643 Fund Balance - End of Year $ $ - $ 14,080,602 $ 14,080,602 191 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, 2020 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 2,336,000 $ 2,501,000 $ 2,446,363 $ (54,637) Investment Earnings (Loss) - - 138 138 Other - 59,991 59,991 Total Revenues 2,336,000 2,501,000 2,506,492 5,492 Expenditures: Community Development 2,336,000 2,501,000 2,483,078 17,922 Total Expenditures 2,336,000 2,501,000 2,483,078 17,922 Excess (Deficiency) of Revenues Over (Under) Expenditures Net Change in Fund Balance 23,414 23,414 23,414 23,414 Fund Balance - Beginning of Year - - 284,223 284,223 Fund Balance - End of Year S $ - $ 307,637 $ 307,637 192 City of Miami, Florida Schedule of Revenue, Expenditures and Changes In Fund Balance Budget and Actual - SHIP For The Fiscal Year Ended September 30, 2020 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 1,300,000 $ 1,300,000 $ 512,815 $ (787,185) Investment Earnings (Loss) - 9,573 9,573 Other - 108,732 108,732 Total Revenues 1,300,000 1,300,000 631,120 (668,880) Expenditures: Community Development 1,300,000 1,300,000 723,998 576,002 Total Expenditures 1,300,000 1,300,000 723,998 576,002 Excess (Deficiency) of Revenues Over (Under) Expenditures Net Change in Fund Balance (92,878) (92,878) (92,878) (92,878) Fund Balance - Beginning of Year - - 1,619,322 1,619,322 Fund Balance - End of Year S $ - $ 1,526,444 $ 1,526,444 193 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, 2020 Revenues: Other Total Revenues Expenditures: Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balance Budgeted Amounts Variance with Original Final Actual Amounts Final Budget $ 471,000 $ - $ (471,000) 471,000 - (471,000) 471,000 - (471,000) (471,000) (471,000) (471,000) (471,000) (471,000) (471,000) Fund Balance - Beginning of Year - - 484,696 484,696 Fund Balance - End of Year $ $ - $ 13,696 $ 13,696 194 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, 2020 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Licenses and Permits $ 800,000 $ 800,000 $ 1,748,488 $ 948,488 Charges for Services 14,502,000 2,546,353 (11,955,647) Investment Earnings (Loss) - 1,105 1,105 Other 19,110,000 4,534,000 2,980,692 (1,553,308) Total Revenues 19,910,000 19,836,000 7,276,638 (12,559,362) Expenditures: General Government - 79,370 (79,370) Planning and Development 19,081,000 19,007,000 720,311 18,286,689 Community Redevelpment Areas - 187 (187) Public Works - 243,232 (243,232) Capital Outlay 604,000 604,000 46,149 557,851 Total Expenditures 19,685,000 19,611,000 1,089,249 18,521,751 Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers Out Total Other Financing Sources (Uses) 225,000 225,000 (225,000) (225,000) (225,000) (225,000) 6,187,389 5,962,389 (261,000) (36,000) (261,000) (36,000) Net Change in Fund Balance - - 5,926,389 5,926,389 Fund Balance - Beginning of Year - 17,384,010 17,384,010 Fund Balance - End of Year $ $ - $ 23,310,399 $ 23,310,399 195 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, 2020 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Other $ 232,000 $ 2,329,000 $ - $ (2,329,000) Total Revenues 232,000 2,329,000 - (2,329,000) Expenditures: Public Safety 11,000 - 11,000 Total Expenditures - 11,000 - 11,000 Excess (Deficiency) of Revenues Over (Under) Expenditures 232,000 2,318,000 - (2,318,000) Other Financing Sources (Uses): Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balance - Beginning of Year Fund Balance - End of Year (232,000) (232,000) $ (232,000) (232,000) (232,000) (232,000) 2,086,000 (232,000) (2,318,000) 242,802 242,802 $ 2,086,000 $ 10,802 $ (2,075,198) 196 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, 2020 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Licenses and Permits $ 83,000 $ 83,000 $ 96,224 $ 13,224 Intergovernmental Revenues 380,000 380,000 418,078 38,078 Other 548,000 984,000 1,029 (982,971) Total Revenues 1,011,000 1,447,000 515,331 (931,669) Expenditures: Parks and Recreation 1,047,000 3,569,000 275,061 3,293,939 Capital Outlay - 1,058 (1,058) Total Expenditures 1,047,000 3,569,000 276,119 3,292,881 Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers In Total Other Financing Sources (Uses) (36,000) (2,122,000) 239,212 2,361,212 36,000 36,000 36,000 36,000 36,000 36,000 Net Change in Fund Balance (2,086,000) 275,212 2,361,212 Fund Balance - Beginning of Year Fund Balance - End of Year 3,002,400 3,002,400 $ (2,086,000) $ 3,277,612 $ 5,363,612 197 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, 2020 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 5,317,000 $ 6,654,000 $ 5,859,604 $ (794,396) Charges for Services 303,000 303,000 256,326 (46,674) Investment Earnings (Loss) - 16,889 16,889 Other 3,507,000 6,450,000 49,306 (6,400,694) Total Revenues 9,127,000 13,407,000 6,182,125 (7,224,875) Expenditures: Public Safety 10,069,000 14,071,000 9,034,132 5,036,868 Capital Outlay 692,000 970,000 471,609 498,391 Total Expenditures 10,761,000 15,041,000 9,505,741 5,535,259 Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers In Total Other Financing Sources (Uses) (1,634,000) (1,634,000) 1,634,000 1,634,000 (3,323,616) (1,689,616) 1,634,000 1,634,000 1,634,000 1,634,000 Net Change in Fund Balance - (1,689,616) (1,689,616) Fund Balance - Beginning of Year - 6,461,997 6,461,997 Fund Balance - End of Year $ $ - $ 4,772,381 $ 4,772,381 198 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, 2020 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Fines and Forfeitures $ 150,000 $ 150,000 $ 316,228 $ 166,228 Investment Earnings (Loss) - 5,811 5,811 Other 827,000 665,000 - (665,000) Total Revenues 977,000 815,000 322,039 (492,961) Expenditures: Public Safety 928,000 766,000 166,503 599,497 Capital Outlay 49,000 49,000 - 49,000 Total Expenditures 977,000 815,000 166,503 648,497 Excess (Deficiency) of Revenues Over (Under) Expenditures - 155,536 155,536 Net Change in Fund Balance 155,536 155,536 Fund Balance - Beginning of Year - 664,952 664,952 Fund Balance - End of Year $ $ - $ 820,488 $ 820,488 199 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, 2020 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Licenses and Permits $ 250,000 $ 250,000 $ 5,561,974 $ 5,311,974 Charges for Services 5,000,000 5,000,000 4,352 (4,995,648) Other 4,347,000 3,822,000 37,631 (3,784,369) Total Revenues 9,597,000 9,072,000 5,603,957 (3,468,043) Expenditures: Public Works 7,514,000 6,989,000 4,201,533 2,787,467 Capital Outlay - 31,447 (31,447) Total Expenditures 7,514,000 6,989,000 4,232,980 2,756,020 Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers Out Total Other Financing Sources (Uses) 2,083,000 2,083,000 (2,083,000) (2,083,000) 1,370,977 (712,023) (2,083,000) (2,383,000) (300,000) (2,083,000) (2,383,000) (300,000) Net Change in Fund Balance - (1,012,023) (1,012,023) Fund Balance - Beginning of Year - 3,822,264 3,822,264 Fund Balance - End of Year $ $ - $ 2,810,241 $ 2,810,241 200 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, 2020 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Charges for Services $ 90,000 $ 90,000 $ 163,425 $ 73,425 Other 1,002,000 1,418,000 - (1,418,000) Total Revenues 1,092,000 1,508,000 163,425 (1,344,575) Expenditures: General Government 1,140,000 1,556,000 139,096 1,416,904 Capital Outlay - 1,464 (1,464) Total Expenditures 1,140,000 1,556,000 140,560 1,415,440 Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers In Total Other Financing Sources (Uses) Net Change in Fund Balance (48,000) (48,000) 22,865 70,865 48,000 48,000 48,000 48,000 48,000 48,000 70,865 70,865 Fund Balance - Beginning of Year - 1,417,948 1,417,948 Fund Balance - End of Year $ $ - $ 1,488,813 $ 1,488,813 201 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, 2020 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 13,630,000 $ 13,927,000 $ 6,406,057 $ (7,520,943) Charges for Services - 2,450 2,450 Other 5,354,000 2,188,000 824 (2,187,176) Total Revenues 18,984,000 16,115,000 6,409,331 (9,705,669) Expenditures: Public Safety 16,468,000 13,283,000 7,547,221 5,735,779 Capital Outlay 3,360,000 3,713,000 146,571 3,566,429 Total Expenditures 19,828,000 16,996,000 7,693,792 9,302,208 Excess (Deficiency) of Revenues Over (Under) Expenditures (844,000) (881,000) (1,284,461) (403,461) Other Financing Sources (Uses): Transfers In Total Other Financing Sources (Uses) Net Change in Fund Balance 844,000 881,000 882,000 1,000 844,000 881,000 882,000 1,000 (402,461) (402,461) Fund Balance - Beginning of Year - - 2,068,503 2,068,503 Fund Balance - End of Year $ $ $ 1,666,042 $ 1,666,042 202 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, 2020 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 600,000 $ 620,000 $ 523,645 $ (96,355) Investment Earnings (Loss) - 7,154 7,154 Other 669,000 3,474,000 648,182 (2,825,818) Total Revenues 1,269,000 4,094,000 1,178,981 (2,915,019) Expenditures: General Government 44,000 2,014,000 20,257 1,993,743 Public Works 1,225,000 2,080,000 665,173 1,414,827 Total Expenditures 1,269,000 4,094,000 685,430 3,408,570 Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers In Total Other Financing Sources (Uses) Net Change in Fund Balance 493,551 493,551 1,035,000 1,035,000 1,035,000 1,035,000 1,528,551 1,528,551 Fund Balance - Beginning of Year - 2,726,015 2,726,015 Fund Balance - End of Year $ $ - $ 4,254,566 $ 4,254,566 203 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, 2020 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Fines and Forfeitures $ 900,000 $ 900,000 $ 1,217,720 $ 317,720 Intergovernmental Revenues 185,000 201,000 1,065,598 864,598 Investment Earnings (Loss) - 82,087 82,087 Other 5,733,000 12,538,000 - (12,538,000) Total Revenues 6,818,000 13,639,000 2,365,405 (11,273,595) Expenditures: General Government 6,025,000 13,716,000 3,510,126 10,205,874 Planning and Development 4,494,000 4,494,000 529,421 3,964,579 Public Works 16,000 26,441 (10,441) Public Facilities 108,000 - 108,000 Parks and Recreation 1,584,000 - 1,584,000 Capital Outlay 2,000 2,000 29,270 (27,270) Total Expenditures 10,521,000 19,920,000 4,095,258 15,824,742 Excess (Deficiency) of Revenues Over (Under) Expenditures (3,703,000) (6,281,000) (1,729,853) 4,551,147 Other Financing Sources (Uses): Transfers In 3,703,000 6,343,000 6,282,000 (61,000) Transfers Out (62,000) (962,000) (900,000) Total Other Financing Sources (Uses) 3,703,000 6,281,000 5,320,000 (961,000) Net Change in Fund Balance - 3,590,147 3,590,147 Fund Balance - Beginning of Year - 12,325,325 12,325,325 Fund Balance - End of Year $ $ - $ 15,915,472 $ 15,915,472 204 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, 2020 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 19,169,000 $ 19,169,000 $ 19,412,965 $ 243,965 Investment Earnings (Loss) - 23,709 23,709 Other 3,041,000 - (3,041,000) Total Revenues 19,169,000 22,210,000 19,436,674 (2,773,326) Expenditures: General Government 153,000 153,000 149,282 3,718 Public Works 14,547,000 17,588,000 10,448,044 7,139,956 Capital Outlay - 2,921 (2,921) Total Expenditures 14,700,000 17,741,000 10,600,247 7,140,753 Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balance 4,469,000 4,469,000 8,836,427 4,367,427 (4,469,000) (4,469,000) (4,469,000) (4,469,000) (4,469,000) (4,469,000) 4,367,427 4,367,427 Fund Balance - Beginning of Year - 3,040,651 3,040,651 Fund Balance - End of Year $ $ - $ 7,408,078 $ 7,408,078 205 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, 2020 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Charges for Services $ 5,558,000 $ 5,558,000 $ 721,608 $ (4,836,392) Other 4,220,000 7,261,000 86,990 (7,174,010) Total Revenues 9,778,000 12,819,000 808,598 (12,010,402) Expenditures: Public Facilities 4,948,000 7,989,000 2,219,188 5,769,812 Total Expenditures 4,948,000 7,989,000 2,219,188 5,769,812 Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers Out Total Other Financing Sources (Uses) 4,830,000 4,830,000 (4,830,000) (4,830,000) (1,410,590) (6,240,590) (4,830,000) (4,830,000) (4,830,000) (4,830,000) Net Change in Fund Balance - (6,240,590) (6,240,590) Fund Balance - Beginning of Year - - 7,160,521 7,160,521 Fund Balance - End of Year $ $ - $ 919,931 $ 919,931 206 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, 2020 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 199,000 $ 199,000 $ 399,000 $ 200,000 Other 586,525 586,525 14,238 (572,287) Total Revenues 785,525 785,525 413,238 (372,287) Expenditures: Community Redevelpment Areas 785,525 785,525 416,837 368,688 Total Expenditures 785,525 785,525 416,837 368,688 Excess (Deficiency) of Revenues Over (Under) Expenditures Net Change in Fund Balance (3,599) (3,599) (3,599) (3,599) Fund Balance - Beginning of Year - 637,716 637,716 Fund Balance - End of Year S $ - $ 634,117 $ 634,117 207 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, 2020 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 350,000 $ 350,000 $ 427,842 $ 77,842 Charges for Services 1,770,000 1,770,000 164,844 (1,605,156) Investment Earnings (Loss) - - (1,718) (1,718) Other 1,127,000 1,127,000 254,784 (872,216) Total Revenues 3,247,000 3,247,000 845,752 (2,401,248) Expenditures: Parks and Recreation 3,247,000 3,247,000 1,114,056 2,132,944 Capital Outlay - - 228,706 (228,706) Total Expenditures 3,247,000 3,247,000 1,342,762 1,904,238 Excess (Deficiency) of Revenues Over (Under) Expenditures Net Change in Fund Balance (497,010) (497,010) (497,010) (497,010) Fund Balance - Beginning of Year - - 1,154,002 1,154,002 Fund Balance - End of Year $ $ - $ 656,992 $ 656,992 208 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, 2020 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Investment Earnings (Loss) $ 26,000 $ 26,000 $ 6,802 $ (19,198) Other 87,000 120,000 - (120,000) Total Revenues 113,000 146,000 6,802 (139,198) Expenditures: Public Works 113,000 146,000 25,497 120,503 Total Expenditures 113,000 146,000 25,497 120,503 Excess (Deficiency) of Revenues Over (Under) Expenditures Net Change in Fund Balance (18,695) (18,695) (18,695) (18,695) Fund Balance - Beginning of Year - - 1,119,618 1,119,618 Fund Balance - End of Year S $ - $ 1,100,923 $ 1,100,923 209 City of Miami, Florida Schedule of Revenue, Expenditures and Changes In Fund Balance Budget and Actual - Bayfront Park Land Acquisition Trust Fund For The Fiscal Year Ended September 30, 2020 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Other $ 1,420,000 $ 1,539,000 $ - $ (1,539,000) Total Revenues 1,420,000 1,539,000 - (1,539,000) Expenditures: Public Facilities 1,539,000 1,658,000 - 1,658,000 Total Expenditures 1,539,000 1,658,000 - 1,658,000 Excess (Deficiency) of Revenues Over (Under) Expenditures (119,000) (119,000) - 119,000 Other Financing Sources (Uses): Transfers In Total Other Financing Sources (Uses) Net Change in Fund Balance 119,000 119,000 119,000 119,000 119,000 119,000 119,000 119,000 Fund Balance - Beginning of Year - - 1,539,000 1,539,000 Fund Balance - End of Year $ $ - $ 1,658,000 $ 1,658,000 210 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, 2020 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Property Taxes $ 23,725,000 $ 23,725,000 $ 23,849,213 $ 124,213 Other 330,000 330,000 - (330,000) Total Revenues 24,055,000 24,055,000 23,849,213 (205,787) Expenditures: General Government 1,022,000 1,022,000 7,598 1,014,402 Principal 20,075,000 20,075,000 20,075,000 - Interest and Other Charges 2,958,000 2,958,000 2,957,634 366 Total Expenditures 24,055,000 24,055,000 23,040,232 1,014,768 Excess (Deficiency) of Revenues Over (Under) Expenditures Net Change in Fund Balance 808,981 808,981 808,981 808,981 Fund Balance - Beginning of Year - 9,649,589 9,649,589 Fund Balance - End of Year $ $ - $ 10,458,570 $ 10,458,570 211 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, 2020 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 3,495,000 $ 3,495,000 $ 4,083,334 $ 588,334 Investment Earnings (Loss) - 17,067 17,067 Other 2,029,000 2,029,000 10,401 (2,018,599) Total Revenues 5,524,000 5,524,000 4,110,802 (1,413,198) Expenditures: General Government 2,479,400 5,308,400 376,600 4,931,800 Principal 32,748,500 32,748,500 38,139,274 (5,390,774) Interest and Other Charges 16,001,100 16,074,100 20,240,029 (4,165,929) Total Expenditures 51,229,000 54,131,000 58,755,903 (4,624,903) Excess (Deficiency) of Revenues Over (Under) Expenditures (45,705,000) (48,607,000) (54,645,101) (6,038,101) Other Financing Sources (Uses): Transfers In Transfers Out Payment To Escrow Agent For Refunding Issuance of Debt Total Other Financing Sources (Uses) 45,705,000 45,705,000 48,534,000 44,648,000 (3,886,000) 73,000 - (73,000) (103,575,001) (103,575,001) 103, 640, 25 0 103, 640,2 50 48,607,000 44,713,249 (3,893,751) Net Change in Fund Balance - - (9,931,852) (9,931,852) Fund Balance - Beginning of Year - 20,261,478 20,261,478 Fund Balance - End of Year $ $ - $ 10,329,626 $ 10,329,626 212 Fiduciary Funds are used to account for assets held by the City in a trustee capacity. FIREFIGHTERS AND POLICE OFFICERS (FIPO) This Pension Trust Fund is used to account for the accumulation of resources to be used for the payment of retirement benefits to Police and Firefighters. Resources are contributed by employees at rates fixed by law and by the City at amounts determined by annual actuarial valuations. GENERAL EMPLOYEES AND SANITATION EMPLOYEES (GESE) These Pension Trust Funds are used to account for the three separate GESE Plans (GESE Members, Excess Plan and Staff Plan). The funds are used to account for the accumulation of resources to be used for the payment of retirement benefits to City employees, other than police and firefighters. Resources are contributed by employees at rates fixed by law and by the City at amounts determined by annual actuarial valuations. CITY OF MIAMI ELECTED OFFICERS' RETIREMENT TRUST (EORT) This Fund is used to account for the accumulation of resources to be used for the payment of retirement benefits to elected officials. Resources are contributed by the City in amounts determined by annual actuarial valuations. 213 City of Miami, Florida Combining Statement of Fiduciary Net Position Fiduciary Funds September 30, 2020 Pension Trust Funds General and General and Sanitation General and Sanitation Employees Staff Elected Officers Fire Fighters and Sanitation Employees (GESE Plan (GESE Staff Retirement Trust Total Pension Police (FIPO) Employees (GESE) Excess Plan) Plan) (EORT) Trust Funds Assets Cash and Cash Equivalents $ 30,136,986 $ 632,545 $ 29,839 $ 41,290 $ $ 30,840,660 Accounts Receivable 13,472,846 3,641,400 53,456 5,001 17,172,703 Capital Assets, Net 2,075,138 1,829,555 - - 3,904,693 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 45,684,970 6,103,500 83,295 46,291 51,918,056 4,93 8,369 387,180,455 514,274,744 106,776,095 100,181,674 527,845,417 36,911,071 318,907,243 126,274,230 183,00 8,108 1,534,583,149 771,714,257 6,560,128 118,274, 592 487,362,129 4,774,342 - 1,046,894,503 1,072,421 37,983,492 318,907,243 126,274,230 183,008,108 4,774,342 7,632,549 2,318,704,297 42,231,553 - 1,622,499,672 777,817,757 42,231,553 83,295 4,820,633 7,632,549 2,412,853,906 Liabilities Obligations Under Security Lending Transactions 42,231,553 - 42,231,553 Accounts Payable 759,830 - 759,830 Accrued Liability - 898,518 83,295 6,029 16,495 1,004,337 Payable for Securities Purchased 13,377,715 2,485,317 - 15,863,032 Total Liabilities 56,369,098 3,383,835 83,295 6,029 16,495 59,858,752 Net Position Restricted for Pension Benefits $ 1,566,130,574 $ 774,433,922 $ $ 4,814,604 $ 7,616,054 $ 2,352,995,154 214 City of Miami, Florida Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Fiscal Year Ended September 30, 2020 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 Net Position- End of Year Pension Trust Funds General and Sanitation Fire Fighters and Employees Police (FIPO) (GESE) General and Sanitation Employees (GESE Excess Plan) General and Sanitation Employees Staff Elected Officers Plan (GESE Retirement Trust Staff Plan) (EORT) Total Pension Trust Funds $ 67,564,414 15,820,796 83,385,210 68,305,516 15,962,191 9,882,345 271,655 94,421,707 $ 49,923,146 14,457,555 64,380,701 41,130,102 6,391,899 5,657,651 25,372 53,205,024 $ 417,755 417,755 $ 221,616 $ 568,910 44,971 - 266,587 568,910 361,179 116,618 90,398 451,577 116,618 475,400 (118,767) 356,633 (6,594,076) 88,184,264 (2,318,188) 50,886,836 2,623,582 106,712 451,577 116,618 171,569,474 137,866,491 320,190 26,230,313 2,230,468 166,647,462 4,922,012 1,561,208,562 $ 1,566,130,574 117,891,119 524,467 73,337,446 417,755 1,456,716 2,527,590 77,321,752 40,569,367 733,864,555 $ 774,433,922 718,164 685,528 $ 118,695,841 30,323,322 149,019,163 109,913,415 22,354,090 15,630,394 297,027 148,194, 926 475,400 (118,767) 356,633 (8,912,264) 139,639,295 2,730,294 291,388,752 310,171 450,763 212,382,626 - 1,776,906 - 26,230,313 106,712 2,400 4,867,170 524,467 310,171 453,163 245,257,015 407,993 232,365 46,131,737 4,406,611 7,383,689 2,306,863,417 $ 4,814,604 $ 7,616,054 $ 2,352,995,154 215 This part of the City's comprehensive annual financial report presents detailed information as a context for understanding what the information contained in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. FINANCIAL TRENDS These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. REVENUE CAPACITY These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax. DEBT CAPACITY These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. DEMOGRAPHIC AND ECONOMIC INFORMATION These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. OPERATING INFORMATION These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. 216 CITY OF MIAMI, FLORIDA NET POSITION (DEFICIT) BY COMPONENT LAST TEN FISCAL YEARS (ACCURAL BASIS OF ACCOUNTING) 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Primary Government Net Investment in Capital Assets $ 665,680,605 604,198,879 578,092,580 $ 627,800,618 $ 616,752,804 $ 614,080,419 $ 651,485,412 $ 626,017,000 $ 657,452,000 $ 693,247,000 $ Restricted 401,306,194 372,927,622 358,414,955 297,600,108 273,730,365 237,584,556 86,209,162 93,376,000 90,078,000 95,873,000 Unrestricted (Deficit) (1,853,857,497) (1,692,600,562) (1,565,976,087) (1,431,127,427) (1,224,962,154) (1,163,152,861) (947,529,448) (327,113,000) (331,776,000) (341,277,000) Total Primary Government Net Position (Deficit) $ (786,870,698) (715,474,061) (629,468,552) $ (505,726,701) 0 (334,478,985) $ (311,487,886) 0 (209,834,874) $ 392280,000 S 415,754,000 S 447,843,000 $ Notes: (1) The City does not have any business -type activities for financial reporting purposes. 217 CITY OF MIAMI CHANGES IN NET POSITION (DEFICIT) LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Expenses Governmental Activities: General Government $ 177,167,727 $ 212,030,574 $ 190,825,241 $ 174,982,174 $ 145,455,559 $ 167,055,389 $ 240,815,051 $ 144,400,178 $ 104,495,000 $ 164,006,000 Planning and Development 29,291,564 32,481,681 22,721,335 19,462,678 15,513,166 15,479,449 50,647,846 11,688,186 16,397,000 10,801,000 Community Development 29,159,537 29,885,260 28,371,102 29,443,452 27,937,279 30,519,798 45,476,324 38,926,526 38,100,000 40,852,000 Community Redevelpment Areas 48,200,294 39,510,779 35,272,784 34,616,272 36,149,769 58,062,764 18,087,177 20,836,076 17,041,000 4,696,000 Public Works 116,448,800 118,662,743 123,517,711 95,595,175 91,985,468 76,035,122 156,036,690 69,241,668 83,062,000 65,604,000 Public Safety 602,699,415 534,660,409 387,651,947 579,366,645 446,865,144 385,120,293 776,125,991 337,347,418 352,869,000 333,431,000 Public Facilities 19,575,268 20,295,788 22,371,164 19,086,773 16,758,483 16,560,573 23,126,368 15,403,258 16,330,000 11,242,000 Parks and Recreation 54,919,137 63,493,078 66,817,655 63,380,712 50,207,864 42,585,419 78,558,325 43,340,882 44,977,000 39,223,000 Interest on Long -Term Debt 18,504,421 20,689,106 25,405,481 29,663,407 32,606,891 33,747,629 31,932,034 43,544,000 37,426,000 43,336,000 Contribution to Port Tunnel 50,000,000 Total Primary Government Expenses 1,095,966,163 1,071,709,418 902,954,420 1,045,597,288 863,479,623 825,166,436 1,420,805,808 724,728,191 710,697,000 763,191,000 Program Revenues Governmental Activities: Charges for Services General Government 59,106,594 67,198,474 79,797,772 80,722,098 78,089,981 66,307,491 65,821,177 50,684,922 51,265,000 48,814,000 Planning and Development 46,837,764 48,357,041 45,574,467 46,837,017 47,586,059 45,385,722 36,879,821 18,848,000 15,328,000 13,125,000 Community Development 369,387 920,736 538,541 1,766,173 5,009,547 824,248 1,555,000 709,000 1,585,000 Community Redevelpment Areas 6,746,428 5,638,853 4,332,416 1,998,138 2,157,456 1,138,695 416,337 62,000 39,000 224,000 Public Works 59,206,653 57,538,163 61,719,832 58,727,450 56,594,045 54,021,469 50,279,793 47,178,270 41,533,000 49,349,000 Public Safety 35,219,101 38,228,864 39,758,748 29,475,920 28,477,126 24,708,571 25,426,372 26,207,867 23,321,000 15,997,000 Public Facilities 23,853,938 38,503,061 35,922,412 37,720,512 35,324,297 37,455,509 30,925,509 29,219,001 27,353,000 18,244,000 Parks and Recreation 5,362,750 8,094,754 6,958,019 7,741,695 7,845,180 8,454,738 5,613,643 7,111,007 7,184,000 6,224,000 Operating Grants and Contributions 120,557,951 104,297,657 95,524,077 81,114,292 88,478,479 84,631,766 105,483,092 103,176,700 88,608,000 94,339,000 Capital Grants and Contributions 7,128,248 2,816,007 9,069,762 1,078,796 11,315,519 9,253,860 2,598,400 17,042,000 29,303,000 21,824,000 Total Primary Government Program Revenue 364,388,814 371,593,610 379,196,046 345,415,918 357,634,315 336,367,368 324,268,392 301,084,767 284,643,000 269,725,000 Net(Expense)Revenue Total Primary Government Net Expense General Revenues and Other Changes in Net Assets Governmental Activities: Taxes Property Taxes, Levied for General Purposes Property Taxes, Levied for Debt Service Franchise Taxes Sales and Other Use Taxes Public Service Taxes Investment Eamings (Losses) - Unrestricted State Revenue Sharing - Unrestricted Gain (Loss) on Disposal of Capital Assets Total Primary Government Change in Net Position (Deficit) Total Primary Government (731,577,349) (700,115,808) (523,758,374) (700,181,370) (505,845,308) (488,799,068) (1,096,537,416) (423,643,424) (426,054,000) (493,466,000) 448,028,007 404,479,302 369,230,063 336,475,508 298,719,456 269,303,313 241,721,842 232,082,786 223,386,000 233,193,000 23,849,213 22,725,247 28,017,811 26,964,194 25,661,731 24,848,727 24,853,248 26,425,030 26,887,000 28,132,000 49,083,039 51,399,079 49,741,913 49,207,879 47,416,360 47,560,134 46,311,659 44,698,943 44,650,000 44,882,000 32,664,564 37,022,921 35,786,997 33,521,269 32,699,735 31,254,199 29,490,981 27,737,964 25,803,000 25,988,000 64,646,386 64,160,961 64,250,989 62,532,940 60,020,384 59,576,109 60,395,502 59,322,198 58,046,000 59,427,000 12,061,606 17,068,757 9,681,343 4,544,604 3,500,158 4,761,254 4,298,129 (2,653,269) 2,826,000 2,393,000 16,310,689 17,254,032 16,380,921 15,687,260 14,836,385 14,389,530 13,389,054 12,673,362 12,367,000 11,430,000 13,537,217 (546,835) 9,960,348 (115,656) 1,087,000 660,180,721 614,110,299 573,090,037 528,933,654 482,854,209 451,146,431 430,420,763 400,171,358 393,965,000 406,532,000 (71,396,628) (86,005,509) 49,331,663 (171,247,716) (22,991,099) (37,652,637) (666,116,653) (22 ,472,066) (32 089,000) (86 934,000) Notes: (1) The City does not have any business -type activities for financial reporting purposes. 218 Fiscal Year 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 CITY OF MIAMI, FLORIDA GENERAL GOVERNMENTAL TAX REVENUES BY S OURCE LAST TEN FISCAL YEARS (ACCRUAL BAS IS OF ACCOUNTING) Ad Valorem Taxes General Purpose $ 448,028,007 404,479,302 369,230,063 336,475,508 298,719,456 269,303,313 241,721,842 232,082,786 223,386,064 233,193,302 Ad Valorem Taxes Debt Service Franchise Taxes $ 23,849,213 22,725,247 28,017,811 26,964,194 25,661,731 24,848,727 24,853,248 26,425,030 26,887,032 28,131,853 $ 49,083,039 Sales and Other Use Communicatiox Taxes Service Taxes Total $ 32,664,564 $ 64,646,386 $ 618,271,209 51,399,079 37,022,921 49,741,913 35,786,997 49,207,879 33,521,269 47,416,360 32,699,735 47,560,134 31,254,199 46,311,659 29,490,981 44,698,943 27,737,964 26,649,826 17,793,928 44,881,126 25,987,633 64,160,961 579,787,510 64,250,989 547,027,773 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 59,426,883 391,620,797 219 General Fund Balances: Non -Spendable Fund Balance Non Spendable Spendable Fund Balance Restricted Committed Assigned Unassigned (deficit) Total Genereal Fund Balances Total All Other Fund Balances: Non -Spendable Fund Balance Non Spendable Spendable Fund Balance Restricted Committed Assigned Unassigned (deficit) TotalAll Other Fund Balances 2020 $ 13,821,891 $ 96,364,271 12,516,335 73,863,962 $ 196,566,459 $ CITY OF MIAMI,FLORIDA FUND BALANCES OF GOVERNMENTAL FUNDS LAST EIGHT FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) 2019 2018 2017 2016 3,342,337 $ 2,154,528 $ 2,101,634 $ 2,009,736 $ 93,564,826 82,882,117 33,984,190 38,015,621 69,054,019 64,411,285 199,945,372 $ 187,463,551 $ 72,818,263 25,386,647 59,836,874 160,143,418 $ 51,908,663 21,116,250 56,486,700 131,521,349 $ 2015 2014 2013 2,450,193 $ 2,950,000 $ 2,554,000 31,257,219 53,619,428 60,077,872 147,404,712 $ 112,422,000 $ 75,462,000 51,813,000 72,908,000 57,659,000 $ 5,340,361 $ 328,160,418 108,797,334 10,168,840 (57,118,857) $ 395,348,096 1,111,308 $ 1,026,537 $ 310,838,708 110,723,266 7,759,828 (34,924,981) $ 395,508,129 318,849,862 107,646,577 24,489,771 (17,507,009) $ 434,505,738 $ 1,021,897 $ 1,023,573 $ 265,501,347 258,667,436 121,083,524 133,813,871 19,260,410 23,123,877 (218,262) (19,998,886) 406,648,916 $ 396,629,871 $ 1,024,203 $ 1,025,000 $ 1,000,000 265,861,622 226,564,000 92,342,101 110,418,000 7,731,312 4,674,000 (1,544,338) (3,479,000) 365,414,900 $ 339,202,000 261,858,000 20,881,000 734,000 (3,399,000) $ 281,074,000 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. 220 CITY OF MIAMI, FLORIDA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) 2020 2019 2018 2017 2016 Revenues Property Taxes $ 471,877,220 $ 427,204,549 $ Franchise and Other Taxes 113,729,425 115,560,040 Licenses and Permits 79,300,612 80,010,141 Fines and Forfeitures 9,021,942 9,293,224 Intergovernmental Revenues 168,720,203 159,010,672 Charges for Services 108,120,816 134,956,287 Investment Earnings (Loss) 12,061,606 17,068,757 Impact Fees 24,683,333 17,360,958 Other 15,575,913 22,859,336 Total Revenues 1,003,091,070 983,323,964 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 Payment To Escrow Agent For Refunding Proceeds Received From Long -Term Debt Premium from Issuance of Debt Issuance of Debt Discount from Issuance of Debt Total Other Financing Sources (Uses) Net Changes in Fund Balances 397,247,874 $ 363,439,702 $ 324,381,187 113,992,902 111,740,819 107,436,744 73,756,786 73,030,964 71,826,609 15,638,528 17,727,789 17,022,156 156,349,299 131,983,836 144,464,881 133,732,658 131,422,481 128,520,198 9,681,342 4,544,604 3,500,158 20,861,463 25,347,222 25,491,632 30,612,771 15,694,374 14,979,722 951,873,623 874,931,791 837,623,287 103,254,665 28,881,769 29,552,658 46,923,582 109,827,517 469,416,576 16,090,739 51,400,432 62,764,274 25,977,322 86,245,833 1,030,335,367 147,073,267 28,842,970 29,278,850 38,207,865 103,610,767 439,120,870 16,271,550 49,672,482 51,836,573 24,567,265 75,065,968 1,003,548,427 117,223,208 113,687,204 94,863,916 22,526,541 18,478,112 16,530,501 28,331,999 29,059,382 27,669,432 33,972,903 33,155,840 35,240,353 113,249,970 93,603,216 88,781,332 398,331,195 377,635,776 358,151,070 18,098,100 16,095,228 14,172,514 53,971,624 50,122,922 40,252,541 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 37,407,853 88,247,094 832,983,027 (27,244,297) 101,441,753 (101,441,753) 14,449,072 (103,575,001) 112,831,279 23,705,350 $ (3,538,947) $ (14,748,394) 98,046,289 (98,046,289) 195,133 (120,320,000) 113,833,541 (6,291,325) (26,515,788) $ (3,552,690) (13,443,129) 4,640,260 118,757,528 (118,757,527) 277,969 (74,105,000) 132,556,675 58,729,645 55,176,955 $ 115,984,813 (115,984,813) 787,221 (112,330,000) 163,694,922 (67,900) 52,084,243 38,641,114 $ 134,391,945 (134,391,945) 441,720 (57,635,000) 67,884,628 10,691,348 15,331,608 Debt Service as a Percentage of Non -Capital Expenditures 9.40% 8.23% 10.16% 9.43% 9.28% (continued) 221 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 Payment To Escrow Agent For Refunding Proceeds Received From Long -Term Debt Premium from Issuance of Debt Issuance of Debt Discount from Issuance of Debt Total Other Financing Sources (Uses) Net Changes in Fund Balances 2015 2014 2013 2012 2011 $ 294,152,040 $ 107,136,243 65,136,838 13,606,546 144,172,756 127,031,324 4,761,254 20,848,627 15,858,407 792,704,035 266,575,890 $ 106,706,981 60,905,490 12,633,258 147,318,713 109,858,728 4,298,129 21,561,620 11,227,804 741,086,613 258,507,816 $ 104,021,141 35,894,264 11,822,487 169,377,430 123,088,110 (2,653,269) 9,121,554 7,446,994 716,626,527 250,273,000 $ 102,696,000 35,726,000 5,538,000 152,3 87,000 106,717,000 2,826,000 4,338,000 14,934,000 675,435,000 261,325,000 104,309,000 34,031,000 6,454,000 170,755,000 94,711,000 2,393,000 1,355,000 10,102,000 685,435,000 95,097,965 93,266,684 94,333,429 187,595,000 17,528,545 13,886,927 11,938,108 7,922,000 30,618,655 32,773,187 38,461,763 36,706,000 57,374,849 16,496,169 20,408,076 22,041,000 72,332,848 64,762,823 63,269,335 48,949,000 320,578,664 309,032,876 311,799,509 221,066,000 14,182,077 11,558,522 12,422,038 12,708,000 34,176,174 30,933,658 32,461,502 25,879,000 23,134,356 43,562,774 87,743,237 796,330,144 47,423,659 42,414,727 65,700,078 728,249,310 73,066,874 44,111,501 52,579,857 754,851,992 22,934,000 41,185,000 66,897,000 693,882,000 166,671,000 8,328,000 40,432,000 4,395,000 46,644,000 218,698,000 9,803,000 26,540,000 50,000,000 30,524,000 29,492,000 39,648,000 2,048,000 113,888,000 787,111,000 (3,626,109) 113,353,457 (113,3 53,457) 1,957,890 12,837,303 130,317,671 (130,317,670) 10,607,538 4,330,862 73,934,380 (38,225,465) (18,447,000) 79,854,462 (79,854,460) 304,345 50,028,639 114,263,000 (114,263,000) (101,676,000) 100,560,000 (100,560,000) 1,087,000 (68,572,000) 1,712,000 120,645,000 1,957,890 88,872,781 $ (1,668,219) $ 101,710,084 $ 50,332,986 - 54,872,000 12,107,521 $ (18,447,000) $ (46,804,000) Debt Service as a Percentage of Non -Capital Expenditures 9.41% 13.56% 16.69% 10.23% 10.27% 222 C1TY OF MIAMI, FLORIDA GENERAL GOVERNMENTAL TAX REVENUES BY S OURCE LAST TEN FIS CAL YEARS (MODIFIED ACCRUAL BAS IS OF ACCOUNTING) Ad Ad ValoremTaxes Ge ValoremTaxesDe Sales and CommunicationSe FiscalYear neralPurpose bt Service FranchiseTaxes OtherUse Taxes rviceTaxes Total 2020 $ 448,028,007 $ 23,849,213 $ 49,083,039 $ 32,664,564 $ 64,646,386 $ 618,271,209 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 59,427,000 391,622,000 223 Fiscal Year Ended September 30, 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 CITY OF MIAMI, FLORIDA NET ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Real Property Residential Property $ 39,059,892,406 36,145,085,669 32,694,764,561 30,510,541,198 27,319,085,749 24,605,804,321 21,934,172,831 20,102,680,659 19,106,566,634 18,536,983,090 Commercial Property $ 21,350,788,617 20,300,307,800 18,370,692,628 16,942,681,891 15,141,552,949 13,199,485,300 11,333,504,297 10,558,773,418 10,336,397,326 10,078,997,005 Source: Miami -Dade Country Property Appraiser's Office. Personal Property $ 2,596,961,699 2,516,205,948 2,291,647,844 2,168,086,910 2,141,666,844 2,097,769,007 2,017,164,410 2,074,115,500 1, 890, 870,077 1,736,766,113 Net Assessed Value Total Direct Tax Rate $ 63,007,642,722 58,961,599,417 53,357,105,033 49,621,309,999 44,602,305,542 39,903,058,628 35,284,841,538 32,735,569,577 31,333,834,037 30,352,746,208 7.9900 8.0300 8.0300 8.2900 8.3351 8.3850 8.4310 8.4710 8.5010 8.6441 Estimated Actual Value $ 78,950,963,476 76,358,400,388 71, 868, 917,720 66,582,430,165 60,628,790,417 54,280,943,197 44,910,824,446 39,674,594,000 43,557,261,093 42,365,151,484 Note: Property in the City is reassessed each year. State law requires the Property Appraiser to appraise property at 100% of market value. The Florida Constitution was amended, effective January 1, 1995, to limit annual increases in assessed value of property with homestead exemption to 3 percent per year or the amount of the Consumer Price Index, whichever is lower. The increase is not automatic since no assessed value shall exceed market value. Tax rates are per $1,000 of assessed value. (1) Includes tax-exempt property. Net Assessed Value as a Percentage of Estimated Actual Value (1) 79.81% 77.22% 74.24% 74.53% 73.57% 73.51% 78.57% 82.51% 71.94% 71.65% Fiscal Year 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Tax Roll Year 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 CITY OF MIAMI, FLORIDA PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS City of Miami, Florida General Operations 7.56650 7.58650 7.43650 7.64650 7.64650 7.64650 7.61480 7.57100 7.57100 7.67400 Debt Total Service City 0.4235 7.9900 0.4435 8.0300 0.5935 8.0300 0.6435 8.2900 0.6886 8.3351 0.7385 8.3850 0.8162 8.4310 0.9000 8.4710 0.9300 8.5010 0.9701 8.6441 Overlapping Rates (1) Miami -Dade County School Miami -Dade Board County 7.1480 5.1449 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 Miami -Dade Miami -Dade Children's County Library Trust System 0.4680 0.2840 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 Sources: City of Miami, Florida Finance Department and Miami -Dade County Property Appraiser's Office. South Florida Water Management District 0.2398 0.2519 0.2659 0.2836 0.3045 0.3294 0.3523 0.3676 0.3739 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 0.0397 0.0320 21.34640 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 225 Taxpayer Florida Power and Light Ponte Gadea Biscayne LLC TWJ 1101 LLC Brickell City Centre Retail LLC T C 701 Brickell LLC CP Miami Center LLC MCPP WFC Maami LLC Brickell Holdings LLC 1450 Brickell LLC Brickell Owner LLC 200 S Biscayne TIC 1 LLC Crescent Miami Center Bellsouth Telecommunications 1111 Brickell Office LLC Trustees of L and B Opera Tower LLC Estoril Incorporated Teachers Ins and Annuity Assoc of America Total Net Assessed Value- Citywide *N/A = Not Aplicable Source: Miami -Dade Property Appraiser CITY OF MIAMI, FLORIDA PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO 2020 2011 Net Assessed Value 651,645,250 396,000,000 379,496,028 264,159,418 212,242,675 210,000,000 207,076,804 200,639,216 199,296,000 193,700,000 2,914,255,391 $ 63,007,642,722 Percent of Total City Net Assessed Rank* Value 1 1.03% 2 0.63% 3 0.60% 4 0.42% 5 0.34% 6 0.33% 7 0.33% 8 0.32% 9 0.32% 10 0.31% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Net Assessed Value Percent of Total City Net Assessed Rank* Value 437,878,458 172,000,000 270,000,000 178,400,000 158,961,503 138,500,000 124,100,000 112,499,679 107,436,935 91,260,906 4.63% $ 1,791,037,481 $ 30,352,746,208 1 1.44% N/A N/A N/A N/A N/A N/A 4 0.57% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 2 0.89% 3 0.59% 5 0.52% 6 0.46% 7 0.41% 8 0.37% 9 0.35% 10 0.30% 5.90% 226 Fiscal Year Ended September 30, 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Total Taxes Levied for Fiscal Year $ 478,259,512 449,788,561 407,034,676 390,792,627 353,176,443 315,966,185 281,070,226 262,193,908 252,157,463 258,028,695 CITY 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 $ 446,908,467 93.44% $ 24,968,743 408,965,659 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 Total Collections To Date Amount $ 471,877,210 427,204,529 397,247,874 363,439,702 324,381,187 294,152,032 266,596,467 258,062,884 250,273,095 261,325,157 Percent of Levy 98.67% 94.98% 97.60% 93.00% 91.85% 93.10% 94.85% 98.42% 99.25% 101.28% 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%. 227 Fiscal Year Ended September 30, 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 CITY OF MIAMI, FLORIDA RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Governmental Activities General Obligation Bonds $ 115,240,000 135,315,000 154,385,000 174,640,000 189,735,000 205,038,304 217,378,253 228,970,771 239,988,415 251,566,791 Revenue Bonds $ 389,778,811 424,332,312 461,893,102 455,546,326 451,965,126 468,723,244 479,517,651 441,414,431 407,366,796 418,172,682 Loans Payable $ 13,745,199 13,745,199 12,867,726 1,236,279 2,435,917 54,971,864 57,119,793 Premium Percent of Capital (Discounts) Personal Per Leases Accretions Total Income (1) Capita (1) $ 29,641,986 $ 6,545,073 $ 554,951,070 2.89% 1,115 28,521,480 9,128,227 611,042,218 2.59% 1,245 36,567,263 4,869,802 670,582,893 3.09% 1,393 30,675,052 6,436,510 667,297,889 3.22% 1,426 10,644,628 8,547,344 660,892,098 3.47% 1,449 - 12,257,756 686,019,304 3.92% 1,561 - 21,334,989 719,467,172 2.43% 1,723 23,465,911 696,287,030 2.37% 1,682 - 702,327,075 2.21% 1,758 726,859,266 2.08% 1,820 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 for personal income and population data. N/A: Information not available 228 Fiscal Year Ended September 30, 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 CITY OF MIAMI, FLORIDA RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS General Obligation Bonds $ 115,240,000 135,315,000 154,385,000 174,640,000 189,735,000 205,038,304 217,378,253 228,970,771 239,988,415 251,566,791 Less Amounts Available in Debt Service Fund $ 10,458,570 9,649,590 9,425,837 5,580,816 3,449,542 1,810,611 3,054,873 3,588,864 1,951,991 336,520 Total $ 104,781,430 125,665,410 144,959,163 169,059,184 186,285,458 203,227,693 214,323,380 225,381,907 238,036,424 251,230,271 Percentage of Estimated Actual Taxable Value of Property (1) 0.166% 0.213% 0.272% 0.341% 0.418% 0.509% 0.607% 0.688% 0.961% 0.906% Per Capita (2) 210 256 301 361 408 462 513 545 657 693 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements (1) See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property on page 224 for property value data. (2) See the Schedule of Demographic and Economic Statistics on page 233 for population data. 229 CITY OF MIAMI, FLORIDA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT AS OF SEPTEMBER 30, 2020 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 $ 2,282,020,000 915,518,000 19.00% $ 433,583,800 19.00% 173,948,420 607,532,220 554,951,070 Total Direct and Overlapping Debt $ 1,162,483,290 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. 230 Debt Limit Total Net Debt Applicable to Limit Legal Debt Margin Total Net Debt Applicable to the Limit as a percentage of Debt Limit Net Assesed Value Less Homestead Exempt Valuation Total Assessed Value Debt Limit for Bonds (15% of Total Assessed Value) Present Debt Application of Debt Limitation General Obligation Debt Less Amount Available in Debt Service Fund Total Net Debt Applicable to Limit Legal Debt Margin CITY OF MIAMI, FLORIDA LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 $ 9,219,517,382 $ 8,539,422,902 $ 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 $ 4,383,368,881 104,781,430 125,665,411 142,403,521 169,059,184 186,262,069 203,204,305 214,300,991 225,381,907 238,036,415 251,229,541 $ 9,114,735,952 $ 8,413,757,491 $ 7,557,813,543 $ 6,975,324,418 $ 6,205,256,148 $ 5,485,463,889 $ 4,775,850,640 $ 4,374,554,780 $ 4,295,724,991 $ 4,132,139,340 1.14% 1.47% $ 63,007,642,722 (1,544,193,509) $ 61,463,449,213 $ 9,219,517,382 115,240,000 (10,458,570) 104,781,430 $ 9,114,735,952 1.85% 2.37% 2.91% 3.57% 4.29% 4.90% 5.25% 5.73% 231 Fiscal Year Ended September 30, 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Ad -Valorem Revenues (1) $ 446,908,467 408,965,659 384,282,266 363,439,702 324,381,189 294,152,040 266,575,890 258,507,816 250,273,095 261,325,154 CITY OF MIAMI, FLORIDA PLEDGED REVENUE COVERAGE LAST TEN FISCAL YEARS Debt Service Principal Interest $ 20,075,000 19,070,000 20,255,000 17,145,000 14,908,304 12,339,949 11,592,499 11,017,644 11,578,375 14,237,664 $ 2,957,634 3,423,817 3,941,109 9,490,770 9,123,918 13,741,375 13,780,696 13,732,200 13,673,035 13,782,766 2x Annual Debt Service $ 46,065,269 44,987,634 48,392,218 53,271,540 48,064,444 52,162,647 50,746,390 49,499,688 50,502,820 56,040,860 Note: (1) Ad valorem revenues shall mean all legally available revenues and taxes of the governmental unit in the Funds (defined as the general fund, special revenue funds, the capital project funds, the special assessment funds, and the expandable trust fund(s)) derived from any source whatever other than ad valorem taxation on real and personal property, including appropriated fund balances in the funds and applicable operating transfers (in). Non -Ad Valorem Revenues are required to be two times greater than projected debt service. Coverage (2) 9.70 9.09 7.94 6.82 6.75 5.64 5.25 5.22 4.96 4.66 (2) The Sunshine State Government Financing Loans require that available non -ad valorem revenues be two times the annual projected debt service for all debt other than general obligation debt of the City. 232 CITY OF MIAMI, FLORIDA DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS Personal Income (Amounts Expressed Personal School Unemployment Year Population(1)(2) in Thousands) (3) Income(3) Median Age (1) Enrollment (4) Rate (5)(6) 2020 497,924 $ $ 39 347,069 8.0% 2019 490,947 19,170,989 39,049 39 350,040 3.1% 2018 481,333 23,576,653 48,982 39 354,172 4.1% 2017 467,872 21,680,253 46,338 39 356,086 4.6% 2016 456,089 20,724,684 45,440 39 356,480 5.0% 2015 439,509 19,021,071 43,278 39 355,913 5.5% 2014 417,650 17,492,435 41,883 39 349,553 5.6% 2013 413,892 16,506,013 39,880 38 348,230 9.3% 2012 399,457 15,522,899 38,860 38 345,635 9.9% 2011 399,457 15,113,056 37,834 38 347,133 11.5% Sources: (1) United States Census Bureau (From FY11 and FY12) (2) Bureau of Economic Analysis, U.S. Department Commerce (From FY13 to FY20) (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 Infoi,iiation Services, Labor Market Statistics (From FY11 to FY19) (6) U.S. Bureau of Labor Statistics (FY20) * FY 2020 Personal Income Infoiivation not available 233 Employer Miami -Dade County Public Schools Miami -Dade County Employer Federal Government Florida State Government University of Miami Baptist Health South Florida American Airlines Jackson Health System Publix Supermarkets City of Miami City of Miami Beach World Fuel Services Corporation Ryder Truck Rental Burger King Total CITY OF MIAMI, FLORIDA PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO 2020 2011 Percentage of Percentage of Total County Total County Employees Rank Employment Employees Rank Employment 37,696 1 3.3% 54,861 1 4.8% 25,502 2 2.3% 30,000 2 2.6% 19,200 3 1.7% 19,400 4 1.7% 17,100 4 1.5% 17,600 5 1.5% 12,818 5 1.1% 13,233 9 1.3% 11,353 6 1.0% 14,865 8 1.2% 11,031 7 1.0% 9,797 8 0.9% 4,604 9 0.4% 3,997 10 0.4% 153,098 13.6% 17,000 6 1.5% 14,999 7 1.3% 12,500 10 1.1% 28,700 3 2.5% 223,158 19.5% Sources: The Becon Council, Miami Florida. Most recent available. The School Board Of Miami -Dade County, Florida Comprehensive Annual Financial Report 2020 234 CITY OF MIAMI, FLORIDA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Number of Employees: General Government 658 638 674 642 608 519 538 540 533 505 Planning and Development 185 179 169 152 138 135 126 124 111 96 Community Development 35 35 35 35 35 38 40 43 43 60 Public Works 591 583 572 573 517 506 452 443 442 442 Public Safety 2,692 2,648 2,599 2,580 2,548 2,448 2,338 2,286 2,282 2,283 Public Facilities 57 59 63 63 54 41 41 42 41 41 Parks and Recreation 299 294 300 301 279 196 192 178 178 182 Total Number of Employees 4,517 4,436 4,412 4,346 4,179 3,883 3,727 3,656 3,630 3,609 Source: City of Miami, Budget Department 235 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 Planning and Development: Certificate of Use Permits Used Business Tax Receipts Issued CITY OF MIAMI, FLORIDA OPERATING INDICATORS BY FUNCTION LAST TEN FISCAL YEARS 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 $ 11,629 $ 20,921 $ 19,401 N/A $ 19,287 $ 19,034 $ 19,239 $ 18,794 $ 24,364 $ 33,491 17,275 20,462 20,360 23,269 23,043 2,687 2,971 3,188 2,456 3,239 9,310 18,748 17,205 17,898 21,732 15,889 15,437 15,285 19,090 14,445 93,107 81,462 82,711 86,865 87,977 108,996 96,899 97,996 105,955 102,422 22,810 22,762 25,779 22,018 26,739 21,411 23,368 24,144 21,592 26,661 23,709 3,108 22,564 13,970 86,038 100,008 21,191 22,566 25,208 3,715 27,580 12,736 83,697 96,433 25,898 3,837 26,329 13,131 79,544 92,675 23,399 20,860 33,877 29,686 28,070 27,045 4,166 4,295 25,155 22,269 15,122 16,686 79,279 81,638 94,401 98,324 20,907 20,775 23,117 22,478 Culture and Recreation: Summer Food Program - Meals Served (Lunches) N/A N/A N/A N/A N/A N/A 123,925 119,603 98,129 92,737 Summer Food Program - Meals Served (Snacks) N/A N/A N/A N/A N/A N/A 123,425 122,512 106,449 87,963 Solid Waste: Refuse Collected (Tons/Day) 383 635 709 693 562 693 675 643 586 551 Recyclables Collected (Tons/Day) 48 54 45 56 52 39 48 52 14 14 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 236 CITY OF MIAMI, FLORIDA CAPITAL ASSETS STATISTICS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS Function/Program 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 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 15 14 14 14 14 Solid Waste: Collection Trucks Public Works: Streets (Miles - Paved) Streets (Miles - Unpaved) Transportation: Street Resurfacing (Miles) 160 151 170 164 148 141 143 144 144 160 661.6 661.6 661.9 661.9 663.2 663.5 663.5 663.8 662.1 662.1 0.82 0.84 0.84 0.84 0.84 0.8 0.8 0.9 1.1 1.1 N/A N/A N/A 23.1 24.0 41.0 27.7 23.7 23.7 18.3 Culture and Recreation: Parks Acreage 1,444 1,316 1,316 1,316 1,497 936 897 897 897 894 Parks 147 145 145 145 143 131 127 127 127 112 Swimming Pools 18 15 15 15 15 15 15 15 15 15 Tennis Courts 48 65 65 65 61 61 61 61 61 61 Community Centers 43 43 43 43 34 43 35 34 34 34 Basketball Courts 91 71 71 71 71 71 71 71 71 71 Water Playgrounds 6 6 6 6 5 5 4 4 3 2 Soccer Fields 15 15 15 15 15 15 15 15 13 13 Football Fields 9 9 9 9 9 9 9 9 9 9 Baseball Fields 29 30 30 30 30 30 30 30 30 30 Open Practice Fields 29 29 29 29 2 2 2 2 2 2 Cricket Field - - - 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 Page left intentionally blank 238 About the Cover View of Downtown Miami The Finance Department would like to extend a special recognition 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 239 COMPREHENSIVE ANNUAL FINANCIAL REPORT City Of Miami,Florida FISCAL YEAR ENDED September 30, 2020 www.miamigov.com © twitter.com/miamifinance305 POPULAR ANNUAL FINANCIAL REPORT CITY OF MIAMI, FLORIDA FISCAL YEAR ENDED September 30, 2020 Prepared By: THE FINANCE DEPARTMENT Erica T. Paschal, CPA Director Munirah Daniel, CPA Assistant Director Noel Ramos Controller Armando J. Blanco Treasurer POPULAR ANNUAL FINANCIAL REPORT City of Miami, Florida FISCAL YEAR ENDED September 30, 2020 TABLE OF CONTENTS INTRODUCTION About our City 1 Principal City Officials 2 City Organizational Chart 3 Geographic Location and Population 4 Miami by the Numbers 5 Economic Outlook 6 Achievements 7 Budget Process 8 FINANCIAL INFORMATION Financial Highlights 9 Net Position 10 Expenses 11 Revenues 12 Capital Assets 13 Long -Term Obligations 14 Cash and Investments 16 Fund Balance 17 POPULAR ANNUAL FINANCIAL REPORT CITY OF MIAMI, FLORIDA FISCAL YEAR ENDED September 30, 2020 COVER PHOTOS Various stock photos of Miami locations: Maimi Design District Downtown skyline Carribean Marketplace, Little Haiti The Finance Department would like to extend a special recognition to Richard Rios, GSA -Graphics Reproduction Division, for his creativity and support with the production of the Popular Annual Financial Report City of Miami, Florida Finance Department 444 SW 2 Avenue, 6th Floor, Miami, Florida 33130 ABOUT the POPULAR ANNUAL FINANCIAL REPORT (PAFR) The Popular Annual Financial Report (PAFR) is an unaudited summary report of the financial activities of the City, and is prepared primarily from detailed information contained in the City's 2020 Comprehensive Annual Financial Report, with selected information from Comprehensive Annual Financial Report's prepared for earlier years. The Comprehensive Annual Financial Report is prepared in accordance with generally accepted accounting principles (GAAP) and includes audited financial statements. As such, it provides much more detail as well as full disclosure of all material events, both financial and non -financial. The GAAP presentation also includes the City's component units (related organizations) and information on individual funds. The information in the Comprehensive Annual Financial Report by its nature can be technical and complex and as such not as useful to citizens wishing to gain an overview of the City's finances. The PAFR has been prepared to simplify the information in the Comprehensive Annual Financial Report and better inform the public about the overall financial condition of the City, without the heavy use of technical accounting terms or excessive detail. The PAFR is not intended to provide a complete financial picture of the City in accordance with GAAP. Questions or feedback concerning any of the information provided in this report or requests for additional financial information may be directed to the City's Finance Department via mail to 444 SW 2nd Avenue, 6th Floor, Miami, Florida 33130. TO VIEW THE CITY'S COMPREHENSIVE ANNUAL FINANCIAL REPORT AND POPULAR ANNUAL FINANCIAL REPORT (PAFR) PLEASE VISIT: http://archive.miamigov.com/Finance/ financiallnfo.html The City of Miami was incorporated in 1896. The City is situated at the mouth of the Miami River on the western shores of Biscayne Bay. It is a main port of entry into Florida. Now 124 years old, the City is part of the nation's eighth largest metropolitan area. Incorporated in 1896, the City is the only municipality conceived and founded by a woman - Julia Tuttle. The City Charter was adopted by the electors of the City of Miami at an election held May 17, 1921 and legalized and validated by Chapter 9024 of the laws of the State of Florida of 1921. The Florida Legislature, in 1955, approved and submitted to a general election, a constitutional amendment designed to give a new form of government to Miami -Dade County, Florida ("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 cities' powers, but supplements them. The County can assume activities of the City's operations if the services fall below minimum standards set by the County Commission, or with the consent of the governing body of the City. Accordingly, the County's financial statements are not included in this report. Since 1997, the City has been governed by a form of government known as the "mayor -city commissioner plan." There are five commissioners elected from designated districts within the City. City elections are held in November every two years on a non -partisan basis. Candidates for mayor must run as such, and not for the commission in general. At each election, two or three members of the commission are elected for four-year terms. Thus, the terms are staggered so that there are always at least two experienced members of the commission. The mayor is elected at large every four years. As official head of the City, the mayor has veto authority over actions of the commission. 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. CITY SERVICES The City provides a full range of services, including police and fire protection, public works projects, solid waste collection, building inspections, licenses and permits, code compliance, the construction and maintenance of streets, housing and community development, recreational and cultural activities, human services, trolley services, and resilience and sustainability initiatives. CITY OF MIAMI 1 MISSION STATEMENT Miami is a modern and diverse city that is a global leader in technology, innovation, and resiliency. VISION 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. Alex Diaz de la Portilla Commissioner - District 1 Francis X. Suarez Mayor Ken Russell Commissioner - District 2 Vice -Chairman Manolo Reyes Joe Carollo Commissioner - District 3 Jeffrey Watson Commissioner - District 4 Commissioner - District 5 Arthur Noriega V Todd B. Hannon City Manager City Clerk Victoria Mendez City Attorney CITY OF MIAMI 2 CITY ORGA CHART CITY COMMISSION Vice -Chairman: Ken Russell District 2 Commissioner: Alex Diaz de la Portilla District 1 Commissioner: Joe Carollo District 3 Commissioner: Manolo Reyes District 4 Commissioner: Jeffrey Watson District 5 City Attorney Victoria Mendez City Clerk Todd B. Hannon Independent Auditor General Theodore Guba, CPA Executive Mayor Francis X. Suarez Chief Administrator / City Manager Arthur Noriega, V Assistant City Manager Chief Financial Officer Fernando Casamayor — Finance — Grants Administration Housing and Community Development — Management and Budget — Procurement — Risk Management _ Real Estate and Asset Management Coconut Grove BID Downtown Development Authority Liberty City Trust Wynwood BID Little Haiti Revitalizaton Trust Assistant City Manager Chief of Operations Natasha Colebrook -Williams ode Compliance eneral Services dministration — IHuman Services iennovation and chnology - arks and Recreation lid Waste Fire Fighters' and Police Officers' Retirement Trust General Employees' and Sanitation Employees' Retirement Trust Midtown CRA Omni CRA 1 Southeast Overtown Park West CRA Assistant City Manager Chief of Infrastructure Nzeribe lhekwaba, Ph.D., PE — Building — Capital Improvement — Planning ■ Resilience and — Public Works 1 — Zoning jd Bayfront Park Management Trust 1 Civilian Investigative Panel Miami Parking Authority Virginia Key Beach Park Trust Agenda Coordination - Communications Equal Opportunity - and Diversity Programs F—' ireRescue — Human Resources — 1 Police Civil Service CITY OF MIAMI 3 GEOGRAP AND P 4 IC LOCATION PULATION According to the U.S. Census Bureau, the City's population in 1900 was 1,700 people. Today it is a city rich in cultural and ethnic diversity of approximately 497,924 residents according to the Bureau of Economic and Business research, University of Florida. In physical size, the City is not large, encompassing only 35.87 square miles. In population, the City is the largest of the 34 municipalities that make up Miami -Dade County. COMMISSION DISTRICTS DISTRICT 1: Commissioner Alex Diaz de la Portilla DISTRICT 2: Vice -Chairman Ken Russell Commissioner Joe Carollo Commissioner Manolo Reyes lil DISTRICT 5: Commissioner Jeffrey Watson District z Miles WEST FLAG ER SOUTH COCON i GROVE CORAL WAY MODEL District LITTLE HAITI WYNWOOD/EDGEWATER OVERTOWN LITTLE HAVANA ORTH/EAST COCONUT GROVE BRICKELL WNTOW CITY OF MIAMI 4 CITY EMPLOYEES 4,517 PUBLIC WORKS 661.6 Streets (miles FIRE Stations POPULATION 497,924 The City of Miami is the largest of 34 municipalities that make up Miami - Dade County Sq. Miles POLICE 1 Station 3 Sub -stations ARK & ECREATION 1d7 Parks Community Centers CITY OF MIAMI 5 With one of the tallest skylines in the United States, the City is the heart of South Florida and continues to display impressive growth, as it emerges as a global city. Miami is the core of the regional U.S. Construction, trade and transportation, financial activities, and tourism, leveraging the City's proximity to Latin American markets. Furthermore, Miami is a hub for international business and one of the largest concentrations of international banks in the United States On January 30, 2020, the World Health Organization declared the coronavirus outbreak a "Public Health Emergency of International Concern" and on March 12, 2020 the City of Miami declared a State of Local Emergency due to the spread of COVID -19 in Miami -Dade County, Florida. The spread of COVID-19, a novel strain of coronavirus, has altered the behavior of business and people in a manner that is having negative effects on local, regional and global economies. The extent to which COVID-19 will continue to impact the City will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the outbreak, new information that may emerge concerning the severity of COVID-19, the actions taken to contain COVID-19 or treat its impact, and the impact of each of these items on the economies and financial markets in the United States. In response to the economic hardships caused by the COVID-19 Pandemic, Congress passed the Coronavirus Aid, Relief and Economic Security Act (CARES Act). On July 9th, 2020, the Miami -Dade Board of County Commissioners unanimously approved $10.0 million of CARES Act funds to develop a Residential Landlord and Tenant Assistance Program to support small landlords with five or fewer rental units by providing grants for rent forgiveness for tenants who are behind on rent due to the COVID-19 pandemic. On July 16th, 2020, the Miami -Dade Board of County Commissioners approved an additional $15.0 million of CARES Act funds to provide Housing and Basic Needs assistance to veterans and active duty military members. This includes support for rent, mortgage and basic needs such as groceries. As with most U.S. cities, but particularly important for the Miami area given its dependence on travel -related activity, economic and revenue performance are closely aligned with the progression of the virus and widespread availability of an effective vaccine or treatment. The current deployment of the COVID-19 vaccines to the population is an indicator that points towards improvement in the local economy. imilt 01 OAT in vm Li -ice [1 i - >r . _31 * -I t Ii rr� _ lid t :. . rr. u h ,1 Ear CITY OF MIAMI 6 GD Government Finance Officers Association Award for Outstanding Achievement in Popular Annual Financial Reporting Presented to City of Miami Florida For its Annual Financial Report for the Fiscal Year Ended September 30, 2019 Executive Director/CEO The Government Finance Officers Association of The United States and Canada (GFOA) has given an award for Outstanding Achievement in Popular Annual Financial Reporting to the City of Miami, Florida for its Popular Annual Financial Report for the fiscal year ended September 30, 2019. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creativity, presentation, understandability and reader appeal. AGFOAaward in Popular Annual Financial Reporting is valid for a period of one year only. We believe our current report continues to conform to the Popular Annual Financial Reporting requirements, and we are submitting it to the GFOA. The City of Miami, Florida was also awarded the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association of the United States and Canada for its Comprehensive Annual Financial Report for year ended September 30, 2019. The Certificate of Achievement is the highest form of recognition for excellence in state and local government financial reporting. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. The report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is also valid for a period of one year. We believe our Comprehensive Annual Financial Report continues to conform to the Certificate of Achievement program requirements, and we have also submitted our Comprehensive Annual Financial Report for the current year to the GFOA. CITY OF MIAMI 7 e- END OF IFEBRUARY Department Budget Submittals MARCH Mayor delivers "State of the City" address to City residents 4 APRIL THROUGH MAY Budget workshops are conducted with the department and budget analysts. Public Hearings are held for citizen's comments. JULY Proposed Budget is finalized and introduction of Budget Ordinance to the City Commission. Commission also votes on the proposed millage rate. SEPTEMBER Review of Budget Ordinance and Public Hearings with City Manager and department directors P9 0 LATE SEPTEMBER Adoption of Budget Ordinance J The annual budget serves as the foundation for the City's financial planning and control. The City's fiscal year is from October 1st to September 30th. The Mayor is required to prepare and deliver a budgetary address annually to the residents of the City. The City Commission is required to hold public hearings on the proposed budget and to adopt the final budget no later than September 30th preceding the beginning of the fiscal year on October lst. 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. oftz. 4714.1j CITY OF MIAMI 8 The information provided is summarized and represents only selected funds; therefore, it is not in accordance with generally accepted accounting principles (GAAP) and is not intended to represent all of the City's component units. The following table is a summary of select financial data for the past two fiscal years: FINANCIAL SUMMARY GOVERNMENTAL ACTIVITIES NET POSITIONS 2020 2019 Assets $ 1,816,112,772 $ 1,815,913,383 Deferred Outflows 566,452,576 447,208,269 Liabilities 2,854,317,892 2,857,923,675 Deferred Inflows 315,118,144 120,672,038 Total Net Position (Deficit) (786,870,688) (715,474,061) REVENUES Governmental Activities 1,024,569,536 985,703,909 Total Revenues 1,024,569,536 985,703,909 EXPENSES Governmental Activities 1,095,966,163 1,071,709,418 Total Expenditures 1,095,966,163 1,071,709,418 CAPITAL ASSETS Governmental Activities 1,092,258,711 1,094,248,044 Total Capital Assets 1,092,258,711 1,094,248,044 LONG-TERM OBLIGATIONS Governmental Activities Total Long -Term Obligations 548,405,997 $ 548,405,997 601,913,991 $ 601,913,991 Governmental activities of the City - general government, planning, and development, community development, community redevelopment areas, public works, public safety, public facilities, parks and recreation, interest on long- term debt. CITY OF MIAMI 9 The Government -wide Balance Sheet, known as the Statement of Net Position, presents information on all of the City's assets and liabilities, with the difference between the two reported as net position. Increases and decreases in net position serve as an indicator of the City's financial position and of the results of the City's operations. The liabilities and deferred inflows of resources of the City exceeded its assets and deferred outflows of resources at the close of the 2020 fiscal year by approximately $786.9 million (net position deficit). One portion of the City's net position is its investment in capital assets (e.g. infrastructure, land, buildings, machinery and equipment), which is reported 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 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, 2020, the City's net investment in capital assets was approximately $650.0 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, 2020, the City's portion of restricted net position was approximately $394.9 million. The remaining portion of the City's net position represents an unrestricted net deficit of approximately $1.83 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 other post -employment benefits (OPEB) liability. At the end of the current fiscal year, the City's overall net position decreased by approximately $71.4 million compared to the prior fiscal year. STATEMENT OF NET POSITION GOVERNMENT ACTIVITIES ASSETS Current and Other Assets Capital Assets Total Assets 2020 $ 723,854,061 1,092,258,711 1,816,112,772 2019 $ 721,665,339 1,094,248,044 1,815,913,383 CHANGE ($) $ 2,188,722 $ (1,989,333) 199,389 CHANGE (%) 0.30% - 0.18% 0.01% DEFERRED OUTFLOWS OF RESOURCES 566,452,576 447,208,269 119,244,307 26.66% LIABILITIES Other Liabilities Long -Term Liabilities Total Liabilities 232,669,627 2,621,648,265 2,854,317,892 208,420,925 2,649,502,750 2,857,923,675 24,248,702 (27,854,485) (3,605,783) 11.63% - 1.05% -0.13% DEFERRED INFLOWS OF RESOURCES 315,118,144 120,672,038 194,446,106 161.14% NET POSITION (Deficit) Net Investment in Capital Assets Restricted Unrestricted (Deficit) Total Net Position (Deficit) 665,680,605 401 ,306,194 (1,853,857,487) $ (786,870,688) 604,198,879 372,927,622 (1,692,600,562) $ (715,474,061) 45,834,974 21,992,659 (139,224,260) $ (71,396,627) 7.59% 5.90% 8.23% 9.98% WHERE DOES THE MONEY GO? During fiscal year 2020, expenses for governmental activities increased by $24.3 million primarily due to Public Safety expenses increasing by $68.0 million or 12.73 percent during the current fiscal year. The increase in Public Safety expenses was offset by decreases of $34.9 million in General Government. The following schedule reflects a summary of expenses compared to the prior year: TOTAL EXPENSES GOVERNMENTAL ACTIVITIES 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 Public Safety 55% 2020 $ 177,167,727 29,291,564 29,159,537 48,200,294 116,448,800 602,699,416 19,575,268 54,919,137 18,504,420 $ 1,095,966,163 Parks and Recreation Public Facilities! 2% 2019 $ 212,030,574 32,481,681 29,885,260 39,510,779 118, 662, 743 534,660,409 20,295,788 63,493,078 20,689,106 $ 1,071,709,418 Interest on Long -Term Debt 2018 $ 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 General Government 16 Planning and Development Community Development 3% Community Redevelopment Areas 3% Public Works 10% CITY OF MIAMI 11 WHERE DOES THE MONEY COME FROM? During fiscal year 2020, total revenues for governmental activities increased over the prior year but were less than the total expenses for the governmental activities. Specifically, property taxes increased over the prior year by $44.7 million, an increase of 10.5 percent, which was primarily driven by new construction. The following schedule reflects a summary of revenue compared to the prior year: TOTAL REVENUES GOVERNMENTAL ACTIVITIES PROGRAM REVENUES Charges for Services Operating Grants and Contributions Capital Grants and Contributions GENERAL REVENUE Property Taxes Franchise Taxes State Revenue Sharing - Unrestricted Sales and Other Use Taxes Public Service Taxes Gain (loss) Sale of Property Investment earnings/(losses) - unrestricted Total Revenues 2020 $ 236,702,616 120,557,951 7,128,248 471,877,220 49,083,039 16, 310, 689 32,664,564 64,646,386 13,537,217 12,061,606 $ 1,024,569,536 Public Service Taxes Sales and other use taxes 6.31% Franchise Taxes 3.19% Property Taxes 46.06% 2019 2018 $ 264,479,946 $ 274,602,207 104,297,657 95,524,077 2,816,007 9,069,762 427,204,549 397,247,874 51,399,079 49,741,913 17,254,032 16,380,921 37,022,921 35,786,997 64,160,961 64,250,989 17,068,757 $ 985,703,909 9,681,342 $ 952,286,082 Investment Earnings - Unrestricted sc Gain (Loss) Sale of Land 1.32% Charges for Services 23 .11. Operating Grant and Contributions 11.77% Capital Grants and Contributions 0.70% State Revenue Sharing - Unristricted 1.75% CITY OF MIAMI 12 INVESTING IN OUR COMMUNITY The City's investment in capital assets as of September 30, 2020, is $1.1 billion. This investment in capital assets includes land, buildings, improvements, machinery, equipment and infrastructure. The total decrease in capital assets from the end of the prior fiscal year is approximately 2.0 million. Major capital asset events during the current fiscal year included the following: • Land increased approximately $0.7 million. • Construction in progress increased approximately $37.7 million. The total transfers out of construction in progress amounted to approximately $4.5 million; however, there was an addition of approximately $42.2 million in new expenditures. • Buildings decreased by approximately $7.7 million. The decrease is in large part attributed to $571 thousand in completed construction in progress projects and building acquisitions offset by $8.2 million in depreciation expense. • Improvements decreased by approximately $12.5 million. These transfers and additions are offset by depreciation expense and retirements incurred for the current fiscal year which net to $15.2 million. • Machinery and Equipment increased by approximately $10.8 million. There was $35.1 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 $8.9 million in retirements and approximately $23.2 million in depreciation expense for the current fiscal year. • Infrastructure decreased by approximately $31.0 million. There was $2.2 million in additions of drainage improvements and the construction of mini parks. These were offset by $33.2 million in depreciation expense for the current fiscal year. CAPITAL ASSETS (NET OF DEPRECIATION) GOVERNMENTAL ACTIVITIES Land Construction-i n-Progress Buildings Improvements Machinery and Equipment Infrastructure Total Capital Assets 2020 $ 121,199,691 164,334,377 201,121,853 65,991,842 75,258,399 464,352,548 $ 1,092,258,711 2019 $ 120,473,843 126,641,268 208,782,224 78,474,025 64,492,823 495,383,861 $ 1,094,248,044 As of September 30, 2020, the City's long-term obligations totaled $2.7 billion. Of this amount, $104.8 million is due within one year. The long-term obligations for the City include claims payable, debt, compensated absences, net pension liability, and other post -employment benefit (OPEB) obligations. The claims payable balance of $235.1 million includes an accrual of $2.0 million for pollution remediation obligations, which are obligations to address the current or potential detrimental effects of existing pollution, $49.9 million for potential legal claims and $183.2 million in connection with the City's self-insurance program. GOVERNMENTAL ACTIVITIES LONG-TERM OBLIGATIONS Ending Balance as of Amount Due September 30, 2020 Within One Year General Obligation Bonds - Direct Placement Other Direct Placements Special Obligation and Revenue Bonds, Loans and Leases Total Debt Outstanding Bond Premium (Discounts) Compensated Absences Claims Payable Other Post Employment Benefits Net Pension Liability Total Long -Term Obligations $ 115,240,000 276,905,997 156,260,000 548,405,997 6,545,073 74, 312, 829 235,050,965 867,949,431 994,144,647 $ 2,726,408,942 $ 20,895,000 19,035,920 16,660,000 56,590,920 5,846,045 42,323,710 $ 104,760,675 The City had total debt outstanding of $548.4 million plus $6.5 million of unamortized bond premiums as of September 30, 2020. Of this amount, $115.2 million is backed by Limited Ad Valorem Tax Revenue; the remainder represents Special Obligation, Revenue bonds, loans and leases which are secured solely by Non -Ad Valorem Revenue sources. LONG TERM DEBT Special Obligation and Revenue Bonds, Loans and Leases General Obligation Bonds: Direct Payment Placement 21% Other Direct Placements 50% CITY OF MIAMI 14 During Fiscal Year 2020 the City issued $75.5 million in Taxable Special Obligation Parking Refunding Revenue Note Series 2019 (Marlins Project), $28.0 million Special Obligation Non -Ad Valorem Revenue Refunding Note, Taxable Series 2020 (Port of Miami Tunnel Project) and $9.3 million Vehicle Replacement Program Series 2020. CREDIT RATINGS There are three major rating agencies that evaluate thousands of issuers and their municipal bonds. The agencies are Moody's, Standard and Poor's (S&P), and Fitch Ratings. The ratings agencies assign ratings such as AAA and other ratings. The objective of the rating agency is to assign a municipal bond credit rating to make it faster for market participants to evaluate risk. A bond's credit rating is the rating agency's opinion as to the creditworthiness of the bond's issuer. Each rating agency produces a ratings scale. The table below shows the City's latest ratings as determined by the three national rating agencies (Moody's, Standard & Poor's, and Fitch Ratings) as of September 30, 2020: City of Miami Bond Ratings ISSUE Limited General Obligation Marlins Garage Special Obligation (NAV) Street and Sidewalks WIKIPEDIA The Free Encyclopedia BOND CREDIT RATING In investment, the bond credit rating represents the credit worthiness of corporate or government bonds. It is not the same as individual's credit score. The ratings are published by credit rating agencies and used by investment professionals to assess the likelihood the debt will be repaid. Credit rating is a highly concentrated industry with the two largest rating agencies - Moody's Investors Service, Standard & Poor's - having roughly 80% market share globally, and the "Big Three" credit rating agencies - Moody's, S&P and Fitch Ratings - controlling approximately 95% of the ratings business." MOODY'S Aa2 Aa3 Aa3 A2 STANDARD &POOR'S AA- AA- AA - A FitchRatings A- A+ A+ AA- Iulaody s S&P Fitch Rating description Long-term Short-term Long-term Short -tens Long-term Short-term Asa P-1 AAA A-1+ AAA F1+ Prime Investment -grade Aa1 AA+ AA+ High grade Aa2 AA AA Aa3 AA- AA - Al A+ A-1 A+ F1 Upper medium grade A2 A A A3 P-2 A- A-2 A- F2 Baa1 BBB+ BBB+ - Lcwer medium grade Baal — Baa3 P-3 BBB A-3 BBB F3 BBB- BBB - Bel BB+ B BB+ Non -investment grade speculative Ba2 Ba3 B1 BB BB BB- BB- B+ B+ Highly speculative B2 B B B3 B- B- CITY OF MIAMI 15 TYPES OF RISK Interest Rate Risk - the risk that the fair value of the City's investments will decrease as a result of an increase in interest rates. Credit Rate Risk - the risk that the City will not recover its investments due to the inability of the issuer to fulfill its obligation. Custodial Credit Risk - the risk that, in the event of failure of the issuer, the City will not be able to recover the value of its deposits, investments, or collateral securities that are in possession of an outside party. WAYS THE CITY MITIGATES RISK Interest Rate Risk - to limit its exposure to fair value losses arising from rising interest rates, the City's Investment Policy limits the maturity of an investment to a maximum of five years. Credit Rate Risk - in order to prevent over concentration by investment type, the City's Investment Policy provides for diversification of its portfolio which establishes limitations on portfolio composition by investment type and by issuer. Custodial Credit Risk - the City's Investment Policy requires that all securities be registered in the name of the City and be held with a third party custodian. The policy also requires that all securities purchased and all collateral obtained by the City should be properly designated as an asset of the City. As of September 30, 2020, pooled cash, cash equivalents and investments including restricted amounts of the primary government, exclusive of the Pension Trust Funds and discrete component units balances, consisted of the following: Investment Type Balance Standard & Moody's Poor's Rating Rating United States Treasury Notes Federal National Mortgage Association Federal Home Loan Mortgage Corp. Federal Home Loan Bank Corporate Notes Commercial Paper Supranational Notes Money Market Fund Total Investments Bank Deposits Total Pooled Cash, Cash Equivalents and Investments $169,602,749 14,646,315 17,795,815 41,201,496 44,878,661 99,965,300 19,895,758 3,473,608 411,459,702 233,733,791 $645,193,493 AA+ AA+ AA+ AA+ A- A-1 AAA AAAm Aaa Aaa Aaa Aaa A3 P-1 Aaa Aaa-mf CITY OF MIAMI 16 The following is a description of the City's fund balance classifications: Non Spendable Fund Balance - This amount includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Examples of this would be inventory, prepaid assets, and permanent endowments. Restricted Fund Balance - This amount includes amounts that are restricted to specific purposes stipulated by (a) external creditors, grantors, contributors, or laws or regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation. Committed Fund Balance - This amount includes amounts that can only be used for specific purposes pursuant to constraints imposed by resolution of the City's highest level of decision making authority, which is the City Commission. Once adopted by resolution, a resolution can only be revised or removed by adoption of a new resolution. Assigned Fund Balance - This amount includes amounts that are constrained by the City's intent to be used for specific purposes, but are neither restricted nor committed. Assignments are made directly by formal action of the City Commission. Unassigned Fund Balance - This amount is the residual classification for the General Fund. This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. An assigned fund balance cannot result in an unassigned fund balance deficit. 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 $196.6 million. Of this amount, the City has approximately $122.7 million retained as designated fund balance, which includes 96.4 million as restricted, approximately $13.8 million is reported as non -spendable for prepaid expenses and advances, approximately $12.5 million is designated as assigned fund balance, and approximately $73.9 million is unassigned fund balance in accordance with the City's Financial Integrity Ordinance. The General Fund's fund balance had a net decrease of approximately $3.4 million during the current fiscal year. Although expenses saw a decrease of $8.6 million, revenues also decreased by $19.0 million. COVID-19 Pandemic negatively impacted the collection of General Fund Revenues, specifically Intergovernmental Revenues and Charges for Services. Intergovernmental Revenues includes revenues from the Miami Parking Authority, Half Cent Sales Tax and Municipal Revenue Sharing. Charges for Services are derived by charges for the use of certain city services, special events and parking surcharge. The preventive measures mandated by the City, in addition to the State and Miami -Dade County measures, to slow the spread of coronavirus negatively impacted the ability to generate such revenues. These measures included the prohibition of on -premise food service in restaurants and retail food facilities, the closure of casinos, cardrooms, frontons, racetracks and parimutuels citywide, and a mandate that all non -essential businesses remain closed until further notice. FUND BALANCE - GENERAL FUND 2020 2019 Non Spendable $ 13,821,891 $ 3,342,337 Restricted 96,364,271 93,564,826 Committed - Assigned 12,516,335 33,984,190 Unassigned 73,863,962 69,054,019 Total Fund Balances $ 196,566,459 $ 199,945,372 POPULAR ANNUAL FINANCIAL REPORT CITY OF MIAMI, FLORIDA FISCAL YEAR ENDED September 30, 2020 www.miamigov.com © twitter.com/miamifinance305 CONTACT INFORMATION City Mayor's Office (305) 250-5300 City Manager's Office (305) 250-5400 Finance (305) 416-1570 Fraud Hot Line (305) 416-2003 Office of Management and Budget (305) 416-1502 General Services Administration (305) 329-4870 Code Compliance (305) 416-2087 Housing and Community Development (305) 416-2080 Employment Office (305) 416-2170 Loan Servicing (305) 416 1975 Occupational Licenses (BTR) (305) 416-1918 Division of Emergency Management (305) 468-5900 Public Facilities (305) 416-1450 Sanitation Code Enforcement (305) 960-2830 Building Inspections and Permits (305) 416-1100