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Home My WebLink AboutBack-Up Documentsk I. * IRCORP ARATER ANNUAL COMPREHENSIVE FINANCIAL REPORT Fiscal Year Ended September 30, 2021 ANNUAL COMPREHENSIV► FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 2021 Prepared By: The Finance Departmen Erica T. Paschal, CPA Director Munirah Daniel, CPA Assistant Director Noel G. Ramos Controller Armando J. Blanco Treasurer Page left intentionally blank City of Miami, Florida ANNUAL COMPREHENSVE FINANCIAL REPORT For the Fiscal Year Ended September 30, TABLE OF CONTENTS INTRODUCTORY SECTION Principal City Officials 3 City Organizational Chart 4 Letter of Transmittal 5 GFOA Certificate of Achievement 18 FINANCIAL SECTION Independent Auditor's Report 21 Management's Discussion and Analysis 25 Basic Financial Statements: Government -wide Financial Statements: Statement of Net Position 37 Statement of Activities 38 Fund Financial Statements: Governmental Funds: Balance Sheet 39 Reconciliation of the Balance Sheet - Governmental Funds to Government -wide Statement of Net Position 40 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds41 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds to the Statement of Activities 42 Fiduciary Funds: Statement of Fiduciary Net Position 43 Statement of Changes in Fiduciary Net Position 44 Discretely Presented Component Units: Statement of Net Position 45 Statement of Activities 47 Notes to the Financial Statements 49 Required Supplementary Information: Budgetary Comparison Schedules of Revenues, Expenditures and Changes in Fund Balances: General Fund 138 Notes to Required Supplementary Information 139 Pension Schedules: Schedule of Changes in the Total OPEB Liability and Related Ratios 140 Schedule of Changes in the Net Pension Liability and Related Ratios 143 City of Miami, Florida ANNUAL COMPREHENSVE FINANCIAL REPORT For the Fiscal Year Ended September 30, TABLE OF CONTENTS Schedule of Employer Contributions 148 Schedule of Investment Returns 153 Combining and Individual Fund Financial Statements and Schedules: Nonmajor Governmental Funds: Combining Balance Sheet 159 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 165 Budgetary Comparison Schedules: Special Revenue Funds: OMNI Community Redevelopment Agency (OMNI) Fund 174 Midtown Community Redevelopment Agency (Midtown) Fund 175 Southeast Overtown Park West Community Redevelopment Agency (SEOPW) Fund 176 Homeless Program Fund 177 Community Development Fund 178 Choice Housing Vouchers (Section 8) Fund 179 Mainstream Vouchers Program Fund 180 State Housing Initiatives Program (SHIP) Fund 181 Convention Center Fund 182 Economic Development & Planning Services Fund 183 Net Offices Fund 184 Parks and Recreations Fund 185 Police Services Fund 186 Law Enforcement Trust Fund 187 Public Works Services Fund 188 City Clerk Services Fund 189 Fire Rescue Special Revenue Fund 190 General Special Revenue Fund 191 Department Improvement Initiatives Fund 192 Transportation & Transit Fund 193 Miami Ballpark Parking Facilities Fund 194 Liberty City Revitalization Trust 195 Virginia Key Beach Trust 196 Solid Waste Recycling Trust 197 Little Haiti Revitalization Trust 198 Bayfront Park Trust Fund 199 City of Miami, Florida ANNUAL COMPREHENSVE FINANCIAL REPORT For the Fiscal Year Ended September 30, TABLE OF CONTENTS Debt Service Funds: General Obligation Bonds Fund 200 Special Obligation Bonds Funds 201 Fiduciary Funds: Combining Statement of Fiduciary Net Positio 203 Combining Statement of Changes in Fiduciary Net Position 204 STATISTICAL SECTION Financial Trends: Net Position by Component 206 Changes in Net Position 207 Governmental Activities Tax Revenues by Source 208 Fund Balances - Governmental Funds 209 Changes in Fund Balances - Governmental Funds 210 Revenue Capacity: General Government Tax Revenues by Source 212 Net Assessed Value and Estimated Actual Value of Taxable Property 213 Property Tax Rates - Direct and Overlapping Governments 214 Principal Property Taxpayers 215 Property Tax Levies and Collections 216 Debt Capacity: Ratios of Outstanding Debt by Type 217 Ratios of General Bonded Debt Outstanding 218 Direct and Overlapping Governmental Activities Debt 219 Legal Debt Margin Information 220 Pledged Revenue Coverage 221 Demographics and Economic Information: Demographics and Economic Statistics 222 Principal Employers 223 Operating Information: Full -Time Equivalent City Government Employees by Function 224 Operating Indicators by Function 225 Capital Assets Statistics by Function/Program 226 Page left intentionally blank 1 INTRODUCT SECTION dE. FRANCIS X. SUAREZ Mayor ALEX DIAZ DE LA PORTILLA Commissioner MANOLO REYES Commissioner ARTHUR NORIEGA, V City Manager KEN RUSSELL Commissioner JOE CAROLLO Vice -Chairman CHRISTINE KING Chairwoman VICTORIA MENDEZ City Attorney September 30, 2021 3 CITY COMMISSION Chairwoman: Christine King District 5 Vice -Chairman: Joe Carollo District 3 Commissioner: Ken Russell District 2 Commissioner: Alex Diaz de la Portilla District 1 Commissioner: Manolo Reyes District 4 City Attorney Victoria Mendez City Clerk Todd B. Hannon Independent Auditor General Theodore Guba, CPA Executive Mayor Francis X. Suarez Assistant City Manager Chief Financial Officer Fernando Casamayor Finance 1 Grants Administration Housing and Community I Development di Management and Budget Procurement Risk Managemen"I 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 Code Compliance General Services Administration Human Services Innovation and Technology Parks and Recreation 1 Solid 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 Chief Administrator / City Manager Arthur Noriega, V Deputy City Manager Chief of Infrastructure Nzeribe Ihekwaba, Ph.D., PE Building Capital Improvements Planning Resilience and Public Works Zoning Bayfront Park Management Trust Civilian Investigative Panel Miami Parking Authority Virginia Key Beach Park Trust Agenda Coordination Communications Equal Opportunity and Diversity Programs Fire Rescue Human Resources Police Civil Service 4 March 31, 2022 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") Annual Comprehensive Financial Report ("Annual Report") as of and for the fiscal year ended September 30, 2021. 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, 2021. 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 125 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 449,747 residents according to the Bureau of Economic and Business Research, University of Florida, 58.3 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 the third -largest skyline 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 continues to be 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". Subsequently, the City of Miami declared a State of Local Emergency on March 12, 2020, due to the spread of COVID -19 in Miami -Dade County, Florida. The City's declaration occurred one day prior to the declaration of a national emergency by the United States President. Despite the uncertainties of the long-term impact of the pandemic, the City was able to demonstrate stability in the City's operating budget with governance and federal support. In response to the economic hardships caused by the COVID-19 Pandemic, Congress passed the Coronavirus Aid, Relief and Economic Security Act (CARES Act). 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 128 eligible businesses with a one- time assistance grant equal to 20 percent of the business's annual gross revenue in 2019. The program was capped at a maximum amount of $20,000, to cover expenses that help the business remain operational, which totaled approximately $1.9 million. In addition to the Business Assistance Grant program, the CARES Act dollars also allowed the City to execute a Gift Card program that assisted 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 ranging from $100 to $250 that were restricted to the purchase of groceries and pharmaceuticals. The City expensed approximately $6.4 million in the execution of this program distributing over 30,000 gift cards. On March 11, 2021, the United States Congress enacted the American Rescue Plan, which was a $1.9 trillion economic stimulus bill to provide economic relief in response to the COVID-19 pandemic. The City was approved for an allocation of $137.6 million. In June 2021, the City received $68.8 million of the allocation to be appropriated for programs that respond to the negative impacts of the pandemic, provide premium pay for essential workers, and invest in water, sewer, and broadband infrastructure. The economic challenges caused by the COVID-19 pandemic proved to be temporary. The local unemployment rate in the Miami area decreased from the previous year with Miami reporting a 2.6 percent unemployment rate as of December 2021, a 3 percent decrease from Dec 2020. This trend is in line with most major cities, who have experienced a sharp decrease in unemployment as well. With Miami having a large leisure and hospitality sector, growth should be expected as events such as Art Basel and Miami Boat Show have returned to the City. According to the Miami Association of Realtors (MIAMI), the City's single family home median sale price has increased by 10.8 percent to $520,000 in January 2022 from $469,500 in January 2021. Condominium median sales prices increased by 28.4 percent to $360,000 from $280,000 for the same period. Overall, Miami's total home sales increased by 14.7 percent in 2021. Though single-family home sales decreased by 1.2 percent in 2021, transactions for condominiums increased by 28.4 percent. Miami registered 13,250 single-family home sales and a total of 13,095 in existing condominiums sales for 2020. Per MIAMI, real estate posted its best December sales month in history in 2021. The demand for real estate is increasing due to demand and low mortgage rates, and more people and businesses are relocating to South Florida from high -tax, high density areas. The Miami area economy has demonstrated an ability to bounce back from past challenges, benefiting from continuous strong immigration, 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 2018 - 2021 2021 2020 2019 2018 $ 806,565,574 $ 771,272,087 $ 788,115,640 $ 745,204,594 845,618,928 774,651,001 775,633,819 717,884,461 (39,053,354) (3,378,914) 12,481,821 27,320,133 196,566,459 199,945,372 187,463,551 160,143,418 $ 157,513,105 $ 196,566,459 $ 199,945,372 $ 187,463,551 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 2.6% 4.4% 3.7% $ 39,049 $ 55,660 $ 62,843 23.4% 12.4% 11.4% 78.0% 88.2% 88.0% 29.6% 29.9% 32.1% 23.2% 16.3% 10.2% 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 Art Basel, Miami International Boat Show, Coconut Grove Arts Festival, Art Wynwood, Bayfront Park New Year's Eve Celebration, and the Ultra Music Festival. In addition to the annual events, visitors to Miami can explore attractions such as Vizcaya Museum and Gardens, Perez Art Museum Miami (PAMM) and the Phillip and Patricia Frost Museum of Science. Miami International Airport The Miami International Airport ("MIA") is operated by the Miami -Dade Aviation Depailiuent and is property of the County government. MIA remains the premier international gateway to Florida welcoming 60 percent of all international visitors to Florida, resulting in a $31.9 billion financial impact on local tourism, cruise operations, international banking, trade and commerce per a recent economic study. Due to the COVID-19 public health crisis, MIA reported a total of 18.7 million passengers for fiscal year 2020. However, at the close of 2021 MIA reported a total of 37.3 million passengers, which represents a 99.9 percent increase. 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 2.8 million tons in 2021. 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 Fiscal Year 2021, the Port logged 1.3 9 million in of twenty -foot equivalent units of containerized cargo (TEUs), which is a 17.6 percent increase from the previous year. This resulting in 2021 being the busiest year in the Port's history. Despite the COVID-19 pandemic and ongoing supply chain disruption, the Port kept the critical movement of cargo flowing. 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 June 17, 2021, the City successfully issued the Series 2021 Special Obligation Tax -Exempt Revenue Bonds for $24.4 million on a tax-exempt basis for the FP&L Undergrounding Project. On July 28, 2021, the City obtained a $9.8 million lease a 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 13, 2018, the City of Miami Commission approved a declaration of intent to issue both taxable and tax-exempt General Obligation Bonds in an expected not to exceed total maximum principal amount of $58.0 million for Tranche 1 of the $400.0 million Miami Forever Bonds 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 June 27, 2019, the City of Miami Commission approved a declaration of intent to issue taxable and tax-exempt Special Obligation Bonds in an amount expected not to exceed $150.0 million for the acquisition of real property, the development, construction and installations for a new City administration building and related parking facilities. 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 for Tranche 2 of the $400.0 million Miami Forever Bonds to fund Strategies for Affordable Housing projects. On December 9, 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 $25.0 million for Tranche 2 of the $400 million Miami Forever Bonds to fund Flood Mitigation projects. 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. On January 23, 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. The Miami Forever Climate Ready Adaptation Plan, in conjunction with the Resilient305 Strategy, guides the climate action in the City. In 2021, the City has made significant progress on two additional plans: an updated Stormwater Master Plan and a Miami Forever Carbon Neutral Plan. The Stormwater Master Plan now has defined priority projects that better guide the City on how to strategically use Miami Forever Bond dollars and apply for additional federal funds to support building of infrastructure projects. The Miami Forever Carbon Neutral Plan is a greenhouse reduction plan that supports the City's goal of net zero greenhouse gas emissions by 2050. The plans will be finalized and presented to City Commission for adoption. 11 The City continues to encourage resident engagement as they maintain the Mayor's 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.miamigov.com/Services/Your-Government/City-of-Miami-Strategic-Plan Capital Improvement Plan The six -year Capital Improvement Plan (CIP) from FY 2022 to FY 2027 includes funding of $888.7 million for 775 active projects. During FY 2022 new capital budget appropriations totaling $45.9 million will be used to fund 68 projects as detailed in the Plan. City Funds make up the largest share of funding at 71.9 percent, followed by City Debt Proceeds at 20.6 percent. The remaining 10.3 percent is made up of funding from the State, Miami -Dade County, Federal sources, donations, other local units, and private/other sources. The tables below summarize the revenues by type and the expenditures by fund within the Capital Improvement Program Capital Improvement Program Revenue by Type Description Amount Percent City Funds $ 638,909,000 71.89% City Debt Proceeds 166,770,000 18.76% Private Donations/Other 6,385,000 0,72% State Grants 27,993,000 3,15% Federal Grants 17,309,000 1.95% Miami -Dade County Grants 24,870,000 2.80% Other Grants 396,000 0.04% Other Local Units 6,137,000 0.69% $ 888,769,000 100.00% 12 Capital Improvement Program Expenditures by Fund Description Amount Percent General Government $ 80,303,000 9.0% Streets and Sidewalks 192,654,000 21.7% Disaster Recovery 1,444,000 0.2% Mass Transit 16,579,000 1.9% Parks and Recreation 210,188,000 23.6%0 Public Facilities 167,963,000 18.9% Public Safety 95,539,000 10.7% Sanitary Sewers 8,084,000 0.9% Solid Waste 7,688,000 0.9% Storm Sewers 108,327,000 12.2% $ 888,769,000 100% The City has adopted a comprehensive set of financial policies. The policies are described below. Write-O frPolicy 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 Department, the Depait,uient 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. 13 The following policies concerning the issuance and management of debt were established in the Debt Management Policy: (a) the City will not issue debt obligations or use debt proceeds to finance current operations, (b) the City will utilize debt obligations only for acquisition, construction or remodeling of capital improvement projects that cannot be funded from current revenue sources or in such cases wherein it is more equitable to the users of the project to finance the project over its useful life, (c) the City will measure the impact of debt service requirements of outstanding and proposed debt obligations on single year, five, ten and twenty-year periods. This analysis will consider debt service maturities and payment patterns as well as the City's commitment to a pay as you go budgetary capital allocation, (d) the City will evaluate the long-term operational impact of capital projects to the City's budget and five-year financial plan. Each proposed debt issuance will be accompanied by a statement from the City Manager stating the estimated operational impact of the project being financed, and (e) the City may periodically refinance debt to take advantage of lower interest rates which will result in a present value savings. The City may issue current refunding bonds that result in a minimum of three percent (3%) net present value savings, and advance refunding bonds that result in a minimum of five percent (5%) net present value savings. Refunding bonds shall not extend the final maturity of the bonds being refunded. If the present value savings is less than the threshold, or will result in a present value loss, and/or the maturity is greater than the maturity on the debt obligations to be refunded, the City may issue or enter into refunding Debt obligations but only after a finding by the Commission that a compelling public policy objective 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%. Investment Management Policy The City adopted a detailed written investment policy on February 26, 2015, that applies to all cash and investments held or controlled by the City and identified as "general operating funds." The Investment Policy does not apply to the City's Pension Funds, Deferred Compensation & Section 401(a) Plans, and funds related to the issuance of debt where there are other existing policies or indentures in effect for such funds. Additionally, any future revenues which have statutory investment requirements conflicting with the City's Investment Policy, and funds held by State agencies (e.g., Department of Revenue) are not subject to the provisions of the policy. 14 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, 2021, the City has complied with its Investment and Debt Management Policies. The investment policy is adopted by City Resolution. The Finance Director, Treasurer, and the Investment Committee shall review the policy annually and the City Commission shall approve any modifications made thereto. Financial Integrity Principles On February 10, 2000, the City enacted Ordinance No. 11890 ("Financial Integrity Ordinance") establishing thirteen 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 15 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 2021 fiscal year, the City's General Fund reserves decreased by approximately $39.1 million and had an ending fund balance of approximately $157.5 million. Of the ending fund balance, approximately $51.3 million is restricted, approximately $27.1 million is non -spendable, approximately $2.8 is assigned, and approximately $76.3 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 $76.3 million for both "Designated" and "Unassigned" for the 2021 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 11.3 percent, while expenditures are projected to grow by a total of 13.4 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 2022 to FY 2026 as normal step progression is included for all collective bargaining units and similar salary increase for non -bargaining employees. Risk Management Selflnsurance 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 depail.uients and a centralized account from which payments are made. Certificate of Achievement The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 2020. 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, 2020. 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. 16 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 eg City Manager Fernando Casamayor Assistant City Manager/CFO Erica T. Paschal, CPA Finance Director 17 G�9 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Miami Florida For its Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2020 Executive Director/CEO 18 19 Page left intentionally blank 20 RSM RSM US LLP Independent Auditor's Report The Honorable Mayor and Members of the City Commission City of Miami, Florida 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, 2021, 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 West Redevelopment Agency OMNI Redevelopment Agency Virginia Key Beach Park Trust Liberty City Community Revitalization District Trusts Midtown Community Redevelopment Agency Fiduciary Component Units — Pension Trust Funds: Firefighters' and Police Officers' Retirement Trust General Employees' and Sanitation Employees' Retirement Trust The discretely presented component units listed above represent 21.5 percent, 33.8 percent and 26.2 percent of the total assets, net position and revenues, respectively, of the discretely presented component units. The blended component units listed above represent 6.8 percent, 8.3 percent and 7.2 percent of the total assets, net position and revenues, respectively, of governmental activities. The aggregate of the fiduciary component units and blended component units listed above represent 94.3 percent, 95.4 percent and 85.8 percent of the total assets, net position/fund balance and revenues/additions, respectively, of the aggregate remaining fund information. THE POWER Li, BEING UNDERSTOOD AUDIT 1 TAX I CONSULTING R5'1 LJS _ _P s the U.S. member firm of RSM Internationala e oLal etwork of independent audit, tax. d consulting firms. Visit rsmus.com/aboutus for ore information regard i_; ESL' -5 LLP and P.S'.4 I.._c....rfor al. The statements for the entities listed above were audited by other auditors whose reports have been furnished to us, and our opinions, insofar as it relates 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 report 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, 2021, 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. 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 reports 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. 22 The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. S,r! Us .L4P Miami, Florida March 31, 2022 23 Page left intentionally blank 24 The 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, 202 We encourage readers to consider the information presented here in conjunction with additional information ti we have furnished in our letter of transmittal, which can be found on pages 5-17 ofthis report. Financial I�ighlights o The liabilities and deferred inflows of resources of the City exceeded its assets and deferred outflows resources at the close of the 2021 fiscal year by approximately $909.0rwi&lgw*itiondeficit) o The City's total net position decreased in fiscal year 2021 by $122.1 million compared to a decrease in n position of$71.4 million during fiscal year 2020. Total expenses exceeded total revenues in the current year primarily due to significant increases in public safety and community development expenses; increases in expenses related to general government, planning and development, public works, parks ai recreation, and interest on long term debt; tempered increases in revenues whereby charges for service and franchise taxes had not fully rebounded from the effects of the COVID-19 pandemic on City operations; and, investment earnings experienced a significant decline. o At the close of the current fiscal year, the City's governmental operating fund (General Fund) reported fund balance of approximately $157.5 million, a decrease of approximately $39.1 million in comparison with the prior year. o The City's total outstanding long-term liabilities had a net increase of approximately $122.9 million during the current fiscal year primarily due to increases in Other Post -Employment Benefits and Ne Pension Liability. Overview of Financial Statements This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. City's basic financial statements are comprised of three components: 1) government -wide financial statements fund financial statements, and 3) notes to the financial statements. This report also contains other supplemen information in addition to the basic financial statements themselves. Government -Wide Financial Statements The government -wide financial statements are designed to provide readers with a broad overview of the City 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 liabilitie 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 is improving or deteriorating. The statement of activities presents information showing how the City's net position changed during the mo recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to ti change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unusi vacation leave). The information is presented with the intent to summarize and simplify the user's analysis oft 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 supporte by taxes and intergovernmental revenuge*rnmental activities The governmental activities of the City include general government, planning and development, community development, community redevelopme areas, public works, public safety, public facilities, and parks and recreation. CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) September 30, 2021 The government -wide financial statements include not only the City itself (known rithey govemmeNbut also its discretely presented component units, which are other governmental units over which the City can exer( influence and/or may be obligated to provide financial subsidies. Financial information for these component un is reported separately from the financial information presented for the primary government itself The blende component units, although legally separate, function for all practical purposes as departments of the City, a therefore have been included as an integral part of the primary government. The government -wide financial statements can be found on pages 37-38 ofthis report. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segreg for specific activities or objectives. The City, like other state and local governments, uses fund accounting ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City can 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 activitie 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 v as on balances of spendable resources available at the end of the fiscal year. Such information may be usefi assessing a government's near -term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, i useful to compare the information presented for governmental funds with similar information presented fo governmental activities in the government -wide financial statements. By doing so, readers may better underst the long-term impact of the government's near -term financing decisions. Both the governmental fund balanc sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provi reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains thirty-seven individual governmental funds. Information is presented separately in thf governmental fund balance sheets and in the governmental fund statements of revenues, expenditures and chz in fund balances for the General Fund, Special Obligation Bonds Projects Fund, Other Capital Projects Fur Emergency Services Fund and Impact Fee Fund, which are considered major funds. Data from the other thirty-1 governmental funds are combined into a single aggregated presentation. Individual fund data for each ofthf non -major governmental funds is provided in man 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, and most special revenue funds and c service funds. Budgetary comparison schedules have been provided for the general fund, special revenue fu and debt service funds. The basic governmental fund financial statements can be found on pages 39-42 ofthis report. CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) September 30, 2021 Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit ofparties outside the City. Fiduciary fun are not reported in the government -wide financial statements because the resources of th ose funds are available to support the City's own programs and operations. The basic fiduciary fund financial statements can be found on pages 43-44 ofthis report. Notes to the Financial Statements The notes provide additional information that is necessary to acquire a full understanding of the data provided the government -wide and fund financial statements. The notes to the financial statements can be found on pa 49-137 ofthis report. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain requi supplementary information concerning budgetary comparisons and the City's progress in funding its obligations provide pension benefits to its employees. Required supplementary information can be found on pages 138-15: this report. The combining statements referred to earlier in connection with non -major governmental funds are present immediately following the required supplementary information. Combining and individual fund statements am schedules can be found on pages 159-173 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 tl case of the City, the assets and deferred outflows of resources was lower than liabilities and deferred inflows resources by $909.0 million at the close of the most recent fiscal year, resulting in a net position (deficit).T] City's net position reflects its investment in capital assets (e.g. infrastructure, land, buildings, machinery an equipment); net of accumulated depreciation, less any related debt used to construct or acquire those assets tl still outstanding. The City uses these capital assets to provide services to citizens; consequently, these asset not available for future spending. Although the City's investment in capital assets is reported net ofrelated debt should be noted that the resources needed to repay this debt must be provided from other sources, since the c; assets themselves are typically not used to liquidate these liabilities. As of September 30, 2021, the City's investment in capital assets was approximately $630.0 million. An additional portion of the City's net position represents resources that are subject to restrictions on how th may be used. As of September 30, 2021, the City's portion of restricted net position was approximately $42( million. The remaining portion represents an unrestricted deficit of approximately $2.0 billion, which is primarily due tc outstanding liabilities for which there are no off -setting assets, which include claims payable, net pension liabilit 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) o approximately $786.9 million to a net position (deficit) of approximately $909.0 million. The reasons for this overall decrease are discussed in the following sections for governmental activities. CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSS ION AND ANALYSIS (Unaudited) September 30, 2021 The following schedule reflects a summary ofthe statement of net position (deficit) compared to the prior year: Summary Statement of Net Position (Deficit) as of September 30, 2021 and 2020 Governmental Activities Assets Current and other assets Capital Assets Total Assets Deferred Outflows of Resources Liabilities Currrent and Other Liabilities Long -Term Liabilities Total Liabilities Deferred Inflows of Resources Net Position (Deficit): Net Investment in Capital Assets Restricted Unrestricted (Deficit) Total Net Position (Deficit) 2021 $ 888,936,858 1,076,256,328 1,965,193,186 573,825,255 328,328,727 2,744,554,640 3,072,883,367 375,123,936 629,956,484 426,214,523 (1,965,159,870) $ (908,988,863) 2020 $ 723,854,061 1,092,258,711 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) $ (786,870,688) Change Change ($) (%) $ 165,082,797 (16,002,383) 149,080,414 22.81 %u (1.47)% 8.21% 7,372,679 1.30% 95,659,100 122,906,375 218,565,475 41.11% 4.69% 7.66% 60,005,792 19.04% (35,724,121) 24,908,329 (1.11,302,383) $ (122,118,175) (5.37)% 6.21% 6.00% 15.52% 28 CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSS ION AND ANALYSIS (Unaudited) September 30, 2021 The following table provides a summary of the City's changes in the statement of net position (deficit) for th fiscal years ended September 30, 2021 and 2020: Changes in Net Position (Deficit) as of September 30, 2021 and 2020 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) - Total Revenues General Government Planning and Development Community Development Community Redevelopment Areas Public Works Public Safety Public Facilities Parks and Recreation Interest on Long -Term. Debt Total Expenses Change in Net Position (Deficit) Net Position (Deficit) - Beginning Net Position (Deficit) - Ending Governmental Activities 2021 $ 242,502,030 162,278,864 19,238,489 505,088,763 50,339,450 18,716,613 40,024,004 65,846,228 1,056,799 1,105,091,240 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 1,024,569,536 181,802,024 177,167,727 32,322,698 29,291,564 49,845,139 29,159,537 41,687,355 48,200,294 128,492,915 116,448,800 693,848,367 602,699,416 20,286,822 19.575.268 60,233,253 54,919,137 18,690,842 18,504,420 1,22 7, 209,415 1,09 5, 966,163 Change Change (S) (° 0) 5,799,414 2.45% 41,720,913 34.61% 12,110,241 169.89% 33,211,543 1,256,411 2,405,924 7,3 59,440 1,199,842 (13,537,217) (11,004,807) 80,521,703 5,440.840 3,031,134 20,685,602 (6,512,939) 11,237,572 91,148,951 711.554 5,314,116 186,422 131,243,252 7.04% 2.56% 14.75% 22.53% 1.86% (100.00)% (91.24)% 7.86% 2.62% 10.35% 70.94% (13.51)% 9.65% 15.12% 3.64% 9.68% 1.01% 11.98% (122,118,175) (71,396..628) (50,721,547) 71.04% (786,870,688) (715,474,061) (71,396,627) 9.98% $ (908.988.863) $ (786.870.688) $ (122,118,175) 15.52% As noted earlier, the City's net position decreased by approximately $122.1 million compared to The major changes are as follows: Total revenues for governmental activities increased over the prior year but were less than the the governmental activities. Specifically, property taxes increased over the prior year by $33.2 m of seven percent, which was primarily driven by new construction. prior fiscal yea total expenses illion, an incre a CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) September 30, 2021 During fiscal year 2021, expenses for governmental activities increased by $131.2 million, which is an increase 11.9 percent in comparison to the 2.3 percent increase in expenses in the prior year. Expenses for Public Sa experienced the most significant increase of $91.1 million due to an increase in pension expense or 15.1 pert during the current fiscal year. Expenses for Community Development also experienced a significant increase $20.7 million due or 70.9 percent during the current fiscal year. There was also a decrease in Communi Redevelopment Areas of$6.5 million or 13.5 percent during the current fiscal year. The following charts provide a visual representation of the expenses and revenues for the governmental activi for fiscal year ended September 30, 2021: S700,000,000 5600,000,000 S500.000,000 5400,000,000 5300,000,003 S200,000,000 5100,000,GOO I .. .. ■ _ I I . • . i _ J J • t� 4 4�`▪ a LC' c ...Ss"- Expenses and Program Revenues - Governmental Activities ca • Expenses • Revenues Revenue by Source - Governmental Activities Sounee Sfi mount Property taxes 46/. $ 505.088.763 Charges for services 22% 242,502,030 Operating grants and contributions 15% 162,278,864 Public services tax 6% 65,846,228 Franchise taxes 5Z 50,339,450 Sales and other use taxes 4% 40,024,004 State revenue sharing - unrestricted 2'/, 18,716,613 Gain(Loss) Sale of Property 0% Investment earnings • unrestricted 0% 1,056,798 Capital grants and contributions 2i: 19,238,489 TOTAL $ 1,105.091239 O f Prapeuytaxes 46% I ICharges far services 22% Operating grants and contributions 15% II Pubic services tax 6% ■Franchise taxes 5% lit Sales and other use taxes 4% MI State revenue sharing - unrestricted 2% ■Gain{Loss) Sale of Property 0% IN Investment earnings - unrestricted 0% ■ Cato ital grants and cmtributiarx 2% CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) September 30, 2021 Financial Analysis of Governmental Funds Governmental Funds The focus of the City's governmental funds is to provide information on near -term inflows, outflows , and balances of spendable resources. Such information is useful in assessing the City's financing requirements. particular, unassigned fund balance may serve as a useful measure of a government's net resources availabl spending at the end ofthe fiscal year. The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the City's tot General Fund balance was $157.5 million. Of this amount, the City has approximately $81.2 million retained designated fund balance, which includes $51.3 million as restricted, approximately $27.1 million is reported non -spendable for prepaid expenses and advances, approximately $2.8 million is designated as assigned balance, and approximately $76.3 million is unassigned fund balance in accordance with the City's Financi Integrity Ordinance. The GeneralFund's fund balance had a net decrease of approximately $39.1 million during the current fiscal ye Although revenues increased by $35.6 million, the increase was offset by an increase in expenses of$36.5 mil and an increase in other financing uses totaling $34.8 million, which resulted in the net decrease of the Gene Fund balance. The primary change that contributed to the increase in other financing sources, was transfer; $105.2 million from the General fund to other funds, which increased by $34.5 million from the prior year, an( includes $45 million transferred to Other Capital Projects for a new administration building. Significant revenue increases included property taxes (5.3 percent), intergovernmental revenues (13 percent), charges for services (10.3 percent). Intergovernmental Revenues includes revenues from the Miami Parki Authority, Half Cent Sales Tax and Municipal Revenue Sharing. Charges for Services are derived by charges the use of certain city services, special events and parking surcharge. These revenue increases reflect improvement in the local economy which is recovering from the downturn in 2020 as a result of the COVID-1! Pandemic. Notably, investment earnings decreased significantly (92.43 percent) reflecting a decline in marl conditions and lower federal interest rates. Increased expenditures are prima rily attributed to increases retirement contributions and payroll related expenditures. Financial highlights ofthe City's other major governmental funds are as follows: The Impact Fee Fund has a fund balance of$103.6 million. The increase in fund balance of$1.5 million from tl prior year resulted primarily from impact fees associated with an increase in high rise residential units beir constructed. The Other Capital Project Fund has a fund balance of $192.6 million. This represents an increase of approxima $74.7 million. The increase can be attributed to transfers in for capital projects and also an increase c intergovernmental revenue s. The Emergency Services Fund has a fund balance deficit of approximately $1.4 million. This represents increase of approximately $7.9 million. The increase is attributed to a significant increase in intergovernment revenues received in 2021 related to FEMA public assistance grant reimbursements for Hurricane Irma, FEN public assistance for COVID-19, and Coronavirus Aid, Relic fand Economic Security Act (CARES Act) funding. The Special Obligation Bond Projects Fund has a fund balance of $2.1 million. This represents an increase approximately $12.5 million. The increase can be attributed to the $24.4 million issuance of debt for the FP& Undergrounding Project. CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) September 30, 2021 General Fund Budgetary Highlights The FY2021 Adopted Budget was developed in the midst of diminished revenues and economic uncertain caused by the COVID-19 pandemic. However, the budget was balanced with no tax rate increases, no fee raise residents and businesses, no reduction in the City's reserves for the new year, and no large-scale reductions in services. A significant policy change in the Adopted Budget was the elimination of the Neighborhood Enhancement Team (NET) from the City's Budget. However, there were no layoffs of city employees and no IN cuts to employees. Additionally, there were also no wage or step increases for city employees. The overall mina rate remained at 7.9900 for both the Operating and Debt Service Millage. The General Fund budget for FY2021 of approximately $873.3 million is $69.5 million higher than last year' final amended General Fund budget of $803.8 million, an 8.65% increase. This is the part of the budget that fui the largest number of City functions or activities including police, fire, public works, building, and parks and recreation services. The FY2021 budget, is guided by the City's Strategic Plan, which has three priority are Quality of Life, Resilience, and Pathway to Prosperity. For example, resilient activities aligned with the Resler 305 Plan to make our City's facilities, infrastructure, and operations able to recover quickly from shocks to socie and mitigate the recurring stresses, are ongoing. And the commitment to expanding opportunity for every Miai resident to succeed through the creation of a pathway to prosperity is demonstrated through the City 's A Poverty Initiative, the Downtown Employment Program, the Miami Connect Summer Jobs Program which fund approximately 200 disadvantaged Miami youth for 20 hours per week for five weeks, among other programs a initiative s. During the year, there was a total budget amendment of $56.3 million to increase the original budget of $8] million to $873.3 million. The is mostly due to an increase of Revenues — Other of $45.8 million pursuant tr Resolution 20-0409, approved on December 10, 2020, by the City Commission authorizing a $45.0 minim transfer from the Building Reserve Fund into the General Fund to fund a capital project for a new future buildir facility for the City's Building Department. The City utilizes a five-year financial forecast to assist with the strategic decision -making process and to identi and prepare for future challenges. The five-year financial forecast projects that revenues will not grow as fast anticipated expenditures. Overall, General Fund revenues are projected to grow by 12.5 percent over the next years. However, General Fund expenditures are projected to grow by 15.9 percent over the same period. CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) September 30, 2021 Capital Assets and Debt Administration Capital Assets The City's capital assets as of September 30, 2021 is $1.1 billion. Capital assets include land, building improvements, machinery, equipment, and infrastructure. The total decrease in capital assets from the end off year is approximately $16 million. Land Construction -in -Progress Buildings Improvements Machinery and Equipment Infrastructure Total Capital Assets (Net of Depreciation) As of September 30, 2021 Governmental Activities 2021 122,601,250 202,008,071. 193,053,271 53,513,745 60,381,452 444,698,539 2020 $ 121,199,691 164,334,377 201,121,853 65,991,842 75,258,399 464,352,549 $ 1,076,256,328 $ 1,092,258,711 Change Change ($) (%) $ 1,401,559 37,673,694 (8,068,582) (12,478,097) (14,876,947) (19,654,010) $ (16,002,383) 1.16% 22.93% (4.01)% (18.91)% (19.77)% (4.23)% (1.47)% Major capital asset events during the current fiscal year included the following: o Land increased approximately $1.4 million. o Construction in progress increased approximately $37.7 million. The total transfers out and deletions c construction in progress amounted to approximately $24.1 million; however, there was an addition o: approximately $61.8 million in new expenditures. o Buildings decreased by approximately $8.1 million. The decrease is primarily attributed to $8.1 million in depreciation expense. o Improvements decreased by approximately $12.5 million. The projects completed during the fiscal year at transferred from construction in progress totaled $0.8 million. There was also an addition of $0.5 million These transfers and additions are offset by depreciation expense and retirements incurred for the current fi year which net to $13.7 million. o Machinery and Equipment decreased by approximately $14.9 million. There was $7.6 million in additions primarily attributed to the acquisition of Fire vehicles, new trolleys for Transportation, Police and Fire equipment. These expenditures are offset by $6.4 million in retirements and approximately $15.4 million i depreciation expense for the current fiscal year. o Infrastructure decreased by approximately $19.7 million. The projects completed during the fiscal year ar transferred from construction in progress totaled $15.1 million and were primarily for seawall and storm drai projects. This was offset by $34.8 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 financi statements. CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) September 30, 2021 Long -Term Debt At the end of the current fiscal year, the City had a total debt outstanding of $539.6 million plus $5.7 million o unamortized bond premiums. Of this amount, $94.3 million is backed by the Limited Ad Valorem Tax Revenue the remainder represents Special Obligation, Revenue bonds and leases secured solely by Non -Ad Valor revenue sources. The City's net debt decreased during the current fiscal year by $8.8 million or 1.6 percent. Outstanding Debt as of September 30, 2021 and 2020 Governmental Activities 2021 General Obligation Bonds $ General Obligation Bonds - Direct Placement Other Direct Placements Special Obligation, Revenue Bonds and Loans 2020 - $ 94, 34 5,000 115 ,240, 000 305,622,520 276,905,997 139,600,000 156,260,000 Total $ 539,567,520 $ 548,405,997 $ Change $ (20,895,000) 28,716,523 (16,660,000) $ (8,838,477) 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 % Change (18.13)% 10.37% (10.66)% (1.61)% Moody's Standard &Poor's Fitch Aa2 Aa3 Aa3 A2 AA- AA- AA - A 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, 2021 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 ele officials. The process begins with the preparation of the financial outlook, a comprehensive review of allocatic needs that are expected to be required by the City for its operations. These allocations include a review ofsala and wages (growth as dictated by negotiated union contracts); pension requirement needs, anticipated insure premium increases, etc. These allocation needs are then compared to the City's anticipated revenue inflow: determine whether these needs can be satisfied. It is with this analysis, along with the Mayor and Cit: Commissioners' feedback, and the City's comprehensive strategic plan, that the guidelines for preparing tl budget toolkit are determined and compiled into an all-inclusive instructional booklet that is then distributed t departments for their use in preparing their budget submissions. The City's elected and appointed offcia considered many factors when adopting the fiscal year 2021 budget. Included among these factors we uncertainties regarding pension costs, health insurance costs, other post -employment benefit costs, and o various economic indicators, including the effects of the COVID-19 pandemic. Between FY 2022 and FY 2026, General Fund revenues are forecasted to grow by a total of 11.3 percent. 1 largest components of General Fund revenues are Property Taxes (51.7 percent of FY 2022 General Fu revenues), Franchise Fees and Other Taxes (13.4 percent), Charges for Services (13.2 percent), Licenses Permits (7.5 percent), and Intergovernmental Revenues (8.6 percent). Interest, Fines and Forfeitures, Otl Revenues, and Transfers -In comprise the remaining 5.6 percent. In fiscal year 2021, the total adopted property tax rate is 7.9900 mills, which is consistent with the prior yea millage rate. The FY 2022 Budget for General Fund property tax revenue is $453.8 million. This budget is bas on an assessed valuation of$65.8 billion and a General Fund operating millage rate of7.6665. The millage rat assumed to remain flat over the five-year period. Taxable property values are projected to increase by thr percent in FY 2022 and by five percent each remaining year of the forecast through FY 2026. This assumption based on the expectation that the development activity in the City has leveled out and will remain flat through t end of the five-year period. Requests for Information This financial report is designed to provide a general overview of the City's finances for all those with an intere in the government's financeto demonstrate the City's accountabilityQuestions concerning any of the information provided in this report or requests for additional financial information should be address£dittio the of Miami's Finance Department — Director, 444 Southwecklienue, Suite 618, Miami, Florida 33130, or visit the City's web site at www.miamigov.com. Page left intentionally blank 36 City of Miami, Florida Statement of Net Position (Deficit) September 30, 2021 Governmental Component Activities Units Assets Cash, Cash Equivalents, and Investments $ 627,509,386 $ 44,040,852 Receivable - Net 32,812,509 3,186,095 Accrued Interest 453,742 - Due From Other Governments 53,366,927 3,097,419 Land Held for Resale 90,971 - Prepaids 11,537,362 766,599 Other Assets 882,508 13,549,306 Restricted Cash, Cash Equivalents, and Investments Related to Bond Proceeds 20,829,552 Restricted Cash, Cash Equivalents, and Investments 141,453,901 31,332,213 Capital Assets: Non -Depreciable 324,609,321 7,221,956 Depreciable - Net 751,647,007 65,007,023 Total Assets 1,965,193,186 168,201,463 Deferred Outflows of Resources Deferred Loss on Refunding Bonds Outflow Related to Pension Outflow Related to OPEB Total Deferred Outflows of Resources 15,184,977 265,961,932 292,678,346 1,826,254 1,791,236 35,771 573,825,255 3,653,261 Liabilities Accounts Payable and Accrued Liabilities 84,035,613 7,044,457 Due to Other Governments 2,947,802 7,554,482 Unearned Revenue 113,612,305 1,133,325 Deposits 16,048,556 1,073,992 Accrued Interest Payable 3,991,553 1,138,200 Non -Current Liabilities: Due Within One Year: Bonds, Loans and Leases Payable 59,724,832 1,845,000 Compensated Absences 7,020,597 433,449 Claims Payable 40,947,469 Due In More Than One Year: Bonds, Loans and Leases Payable 485,531,915 55,625,690 Compensated Absences 75,639,019 754,848 Claims Payable 190,222,712 - Total Other Post Employment Benefits 958,411,935 393,182 Net Pension Liability 1,034,749,059 55,969 Total Liabilities 3,072,883,367 77,052,594 Deferred Inflows of Resources Inflow Related to Pension Inflow Related to OPEB Total Deferred Inflows of Resources 193,199,053 181,924,883 729,461 127,406 375,123,936 856,867 Net Position (Deficit) Net Investment in Capital Assets 629,956,484 20,734,233 Restricted for: Capital Projects 230,749,257 12,147,594 Debt Service 14,850,699 2,252,768 Parking Waiver and Transportation 21,043,832 973,890 Parking Surcharge - 438,876 Facilities Improvement 1,245,277 Building 43,723,669 Housing Assistance and Economic Development 10,169,297 Law Enforcement 1,047,319 Community Redevelopment 89,923,593 Choice Housing Voucher Program 361,469 E-911 and Public Safety 9,116,506 Other 3,983,605 18,000 Unrestricted (Deficit) (1,965,159,870) 57,379,902 Total Net Position (Deficit) $ (908,988,863) $ 93,945,263 The notes to the financial statement are an integral part of this statement. 37 City of Miami, Florida Statement of Activities For the Fiscal Year Ended September 30, 2021 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 $ 181,802,024 $ 55,236,442 $ 47,719,343 $ 11,879,069 $ (66,967,170) $ Planning and Development 32,322,698 47,719,297 - 15,396,599 Community Development 49,845,139 786,476 52,062,450 3,003,787 Community Redevelopment Areas 41,687,355 7,550,071 1,566,457 - (32,570,827) Public Works 128,492,915 59,921,470 22,487,221 460,912 (45,623,312) Public Safety 693,848,367 33,489,824 33,489,264 18,750 (626,850,529) Public Facilities 20,286,822 30,734,347 4,954,129 4,380,154 19,781,808 Parks and Recreation 60,233,253 7,064,103 - 2,499,604 (50,669,546) Interest on Long -Term Debt 18,690,842 - - (18,690,842) Total Primary Government $ 1,227,209,415 $ 242,502,030 $ 162,278,864 $ 19,238,489 $ (803,190,032) $ Component Units: Department of Off -Street Parking Downtown Development Authority Bayfront Park Management Trust Coconut Grove BID Wynwood BID Civilian Investigative Panel Miami Sports and Exhibition Authority Total Component Units $ 36,681,002 $ 47,282,406 $ $ 1,581,667 $ $ 12,183,071 9,227,988 (9,227,988) 2,347,698 2,778,328 3,713,052 4,143,682 1,692,077 1,253,831 - (438,246) 1,139,378 1,459,849 - 320,471 1,034,555 - 748,000 (286,555) $ 52,122,698 $ 52,774,414 $ 748,000 $ 5,294,719 $ $ 6,694,435 General Revenues: Taxes: Property Taxes, levied for general purposes $ 485,723,309 $ 9,904,090 Property Taxes, levied for debt service 19,365,454 - Franchise Taxes 50,339,450 State Revenue Sharing - Unrestricted 18,716,613 Sales and Other Use Taxes 40,024,004 Public Service Taxes 65,846,228 - Investment Earnings - Unrestricted 1,056,799 813,605 Gain on Sale of Capital Assets - 52,967 Other General Revenues 690,324 Total General Revenues 681,071,857 11,460,986 Change in Net Position (Deficit) (122,118,175) 18,155,421 Net Position - Beginning (Deficit) (786,870,688) 75,789,842 Net Position - Ending (Deficit) $ (908,988,863) $ 93,945,263 The notes to the financial statement are an integral part of this statement. 38 General City of Miami, Florida Balance Sheet Governmental Funds September 30, 2021 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 $ 172,753,732 $ 191,571,942 $ - $ 80,955,327 $ $ 182,228,385 $ 627,509,386 Restricted Cash, Cash Equivalents, and Investments - - 105,946,446 - 6,842,344 49,494,663 162,283,453 Receivables (Net of Allowance for Uncollectibles): Loans Receivable 1,794 1,794 Accounts Receivable 24,887,297 1,621 2,447,485 27,336,403 Property Tax 5,205,995 268,317 5,474,312 Due From Other Governments 7,536,811 18,123,338 15,250,158 12,456,620 53,366,927 Due From Other Funds 17,771,755 - 17,771,755 Advance to Other Funds 23,900,113 - - 23,900,113 Accrued Interest 162,955 4,109 101,923 184,755 453,742 Prepaids 3,208,504 8,311,685 17,173 - 11,537,362 Other Assets 101,408 - - 781,100 882,508 Total Assets 255,528,570 218,012,695 106,065,542 96,205,485 6,842,344 247,863,119 930,517,755 Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts Payable and Accrued Liaibilities $ 41,018,672 $ 14,656,098 $ 2,487,340 $ 2,977,181 $ 385,996 $ 11,882,826 $ 73,408,113 Other Liabilities 10,623,276 - - - 4,224 10,627,500 Due to Other Funds 1,377,401 14,583,924 - 1,810,430 17,771,755 Advances From Other Funds 4,363,065 19,537,048 23,900,113 Due to Other Governments 17,748 2,930,054 2,947,802 Unearned Revenue 25,314,544 8,222,192 80,000,120 75,449 113,612,305 Deposits 15,835,230 - - 213,326 16,048,556 Total Liabilities 92,809,470 24,255,691 2,487,340 97,561,225 4,749,061 36,453,357 258,316,144 Deferred Inflows of Resources Unavailable Revenue - Other 5,205,995 1,171,421 3,356,962 9,734,378 Total Deferred Inflows of Resources 5,205,995 1,171,421 3,356,962 9,734,378 Fund Balances (Deficit): Non -Spendable Fund Balance Non Spendable 27,108,617 8,311,685 17,173 1,000,000 36,437,475 Spendable Fund Balance Restricted 51,328,869 115,678,471 103,561,029 2,951,512 177,515,747 451,035,628 Committed - 66,582,833 - - 48,873,020 115,455,853 Assigned 2,811,048 2,012,594 - 4,270,572 9,094,214 Unassigned (deficit) 76,264,571 - (1,355,740) (858,229) (23,606,539) 50,444,063 Total Fund Balances (deficit) 157,513,105 192,585,583 103,578,202 (1,355,740) 2,093,283 208,052,800 662,467,233 Total Fund Balances (Deficit) $ 255,528,570 $ 218,012,695 $ 106,065,542 $ 96,205,485 $ 6,842,344 $ 247,863,119 $ 930,517,755 The notes to the financial statement are an integral part of this statement. 39 City ofMlami, Florida Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position (Deficit) September30, 2021 Fund Balances - Total Governmental Funds $ 662,467,233 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 2,771,291,586 (1,695,035,258) 1,076,256,328 Inventory for land held for resale are not financial resources and therefore are not reported in the governmental funds. 90,971 Deferred inflow and outflow related to the City's Pension Plans and Other Post Employment Benefit Plans (OPEB) are amortized in future periods and are therefore not reported in the governmental funds: Deferred outflows related to pensions 265,961,932 Deferred outflows related to OPEB 292,678,346 Deferred inflow related to pensions (193,199,053) Deferred inflow related to OPEB plan (181,924,883) 183,516,342 Loss on refunding of debt is recognized in the Statement of Net Position (Deficit) and amortized over the term of the bond 15,184,977 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 (545,256,747) (82,659,616) (231,170,181) (958,411,935) (1,034,749,059) (3,991,553) 4,260,066 5,474,311 (2,856,239,091) Net Position (Deficit) of Governmental Activities $ (908,988,863) The notes to the financial statement are an integral part of this statement. 40 City of Miami, Florida Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For The Fiscal Year Ended September 30, 2021 Major Funds Special Non -Major Total Other Capital Emergency Obligation Governmental Governmental General Projects Impact Fee Services Bonds Projects Funds Funds Revenues Property Taxes $ 410,291,273 $ - $ - $ - $ $ 94,797,490 $ 505,088,763 Franchise and Other Taxes 116,185,678 116,185,678 Licenses and Permits 72,250,314 6,204,074 78,454,388 Fines and Forfeitures 7,982,232 1,842,963 9,825,195 Intergovernmental Revenues 72,175,296 19,516,433 63,207,413 75,624,450 230,523,592 Charges for Services 114,560,700 293,789 - 8,022,027 122,876,516 Investment Earnings (Loss) 808,854 40,774 346 206,825 1,056,799 Impact Fees 14,209,808 - 14,209,808 Other 6,478,363 387,951 114,922 - 9,437,888 16,419,124 Total Revenues 800,732,710 20,198,173 14,365,504 63,207,413 346 196,135,717 1,094,639,863 Expenditures Current Operating: General Government 111,051,681 1,832,514 173,448 5,936,856 10,417,327 5,749,155 135,160,981 Planning and Development 28,715,101 1,314,360 10,647 - 643,200 30,683,308 Community Development 1,094,860 14,676,985 33,647,138 49,418,983 Community Redevelopment Areas 39,714,941 39,714,941 Public Works 95,021,923 2,488,884 113,413 171,325 17,372,112 115,167,657 Public Safety 439,976,729 479,215 477,598 25,050,606 14,686,901 480,671,049 Public Facilities 13,833,093 1,375,100 56,000 3,211 - 1,833,008 17,100,412 Parks and Recreation 49,423,046 300,057 216,383 810,672 1,276,823 52,026,981 Debt Service: Principal 59,358,896 59,358,896 Interest and Other Charges - 18,035,653 18,035,653 Capital Outlay 1,289,020 38,162,193 14,122,628 8,659,510 1,387,268 13,875,289 77,495,908 Total Expenditures 740,405,453 45,952,323 15,159,470 55,319,812 11,804,595 206,193,116 1,074,834,769 Excess (Deficiency) of Revenues Over (Under) Expenditures 60,327,257 (25,754,150) (793,966) 7,887,601 (11,804,249) (10,057,399) 19,805,094 Other Financing Sources (Uses) Transfers In 5,605,699 74,412,134 2,266,058 - - 57,544,930 139,828,821 Transfers Out (105,213,475) (85,000) (34,530,346) (139,828,821) Proceeds from Sale of Property 227,165 - - - - 227,165 Issuance of Debt 26,085,419 24,435,000 50,520,419 Total Other Financing Sources (Uses) (99,380,611) 100,497,553 2,266,058 24,350,000 23,014,584 50,747,584 Net Changes in Fund Balances (Deficit) (39,053,354) 74,743,403 1,472,092 7,887,601 12,545,751 12,957,185 70,552,678 Fund Balances (Deficit) - Beginning 196,566,459 117,842,180 102,106,110 (9,243,341) (10,452,468) 195,095,615 591,914,555 Fund Balances (Deficit) - Ending $ 157,513,105 $ 192,585,583 $ 103,578,202 $ (1,355,740) $ 2,093,283 $ 208,052,800 $ 662,467,233 The notes to the financial statement are an integral part of this statement. 41 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, 2021 Net Changes in Fund Balances - Total Governmental Funds $ 70,552,678 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. 1,435,165 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. 357,963 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 71,755,731 Less: current year depreciation (78,794,146) (7,038,415) The net effect of various transactions involving capital assets (i.e. sales and disposals) 864,529 is to decrease net position. Loss on disposal of capital asset (9,828,498) 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 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 59,358,896 855,845 (26,085,419) (1,521,147) (24,43 5,000) (8,346,787) 3,880,784 (113,880,195) (68,298,687) 10,113 8,173,175 (186,634,772) Change in Net Position (Deficit) of Governmental Activitie s $ (122.118.175) The notes to the financial statement are an integral part of this statement. 42 City of Miami, Florida Statement of Fiduciary Net Position Fiduciary Funds September 30, 2021 Assets Cash and Cash Equivalents Accounts Receivable Capital Assets, Net Investments: U.S. Government Obligations Corporate Bonds Corporate Stocks Money Market Funds International Equity Real Estate Private Equity Total Investments Pension Trust Funds $ 33,438,961 22,804,294 3,837,171 60,080,426 137,450,692 452,003,205 1,317,733,286 47,360,120 389,196,931 141,041,052 216,712,532 2,701,497,818 Securities Lending Collateral 59,263,304 Total Assets 2,820,841,548 Liabilities Obligations Under Security Lending Transactions 59,263,304 Accounts Payable 1,174,295 Accrued Liability 16,495 Payable for Securities Purchased 29,315,213 Total Liabilities 89,769,307 Net Position Restricted for Pension Benefits $ 2,731,072,241 The notes to the financial statement are an integral part of this statement. 43 City of Miami, Florida Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Fiscal Year Ended September 30, 2021 Pension Trust Funds Additions Contributions: Contributions - Employer $ 125,515,191 Plan Members 29,802,989 Total Contributions 155,318,180 Investment Earnings: Net Increase in Fair Value of Investments 455,409,368 Interest 13,327,911 Dividends 10,964,576 Other 227,551 Total Investment Earnings 479,929,406 Security Lending Activities: Security Lending Income Security Lending Fees and Rebates Net Income From Security Lending Activities 153,771 (38,411) 115,360 Less Investment Expenses (6,978,346) Net Investment Earnings 473,066,420 Reimbursement from City for Administrative Costs 2,780,693 Total Additions 631,165,293 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 218,249,517 3,072,347 26,463,257 5,303,085 253,088,206 378,077,087 2,352,995,154 $ 2,731,072,241 The notes to the financial statement are an integral part of this statement. 44 City of Miami, Florida Statement of Net Position Discretely Presented Component Units September 30, 2021 Department Downtown Bayfront Park Coconut of Off -Street Development Management Grove Parking Authority Trust BID Assets Cash, Cash Equivalent and Investments $ 24,625,034 $ 11,055,630 $ 7,015,657 $ 358,290 Receivables (Net of uncollectible accounts) 259,836 676,191 87,752 723,074 Due From Other Governments 97,419 - 3,000,000 - Prepaids 634,315 118,840 13,444 - Other Assets 6,860,887 - - 6,688,419 Restricted Assets: Cash, Cash Equivalents, and Investments 31,332,213 - - - Capital Assets: Non -Depreciable 6,476,427 - 745,529 - Depreciable, Net 59,100,391 115,027 5,115,493 443,266 Total Assets 129,386,522 11,965,688 15,977,875 8,213,049 Deferred Outflows of Resources Deferred Loss on Refunding Bonds 1,826,254 - - - Outllow Related to Pension 1,791,236 - - - Outflow Related to OPEB 35,771 - - - Total Deferred Outflows of Resources 3,653,261 - - - Liabilities Accounts Payable and Accrued Liabilities 2,891,905 3,788,182 180,342 115,117 Due to Other Governments 7,289,576 - - - Unearned Revenue 890,550 - 242,775 - Deposits 997,800 - 76,192 - Accrued Interest Payable 1,138,200 - - - Non -Current Liabilities Due Within One Year: Bonds and Loans Payable 1,845,000 - Compensated Absences 430,540 2,909 Due In More Than One Year: Bonds and Loans Payable, Net 55,625,690 - Compensated Absences 581,483 173,365 Other Post Employment Benefits 393,182 - Net Pension Liability 55,969 - Total Liabilities 72,139,895 3,964,456 499,309 115,117 Deferred Inflows of Resources Inflow Related to Pension 729,461 - - - Inllow Related to OPEB 127,406 - - - Total Deferred Inflows of Resources 856,867 - - - Net Position Net Investment in Capital Assets 14,082,072 115,027 5,861,022 443,266 Restricted for: Capital Projects 12,147,594 - - - Debt Service 2,252,768 - - - Parking Waiver and Transportation - - - 828,690 Parking Surcharge - - - 438,876 Other - - - - Unrestricted 31,560,587 7,886,205 9,617,544 6,387,100 Total Net Position $ 60,043,021 $ 8,001,232 $ 15,478,566 $ 8,097,932 (continued) 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, 2021 Civilian Wynwood Investigative BID Panel Total Assets Cash, Cash Equivalent and Investments $ 782,339 $ 203,902 $ 44,040,852 Receivables (Net of uncollectible accounts) 1,439,242 - 3,186,095 Due From Other Governments - 3,097,419 Prepaids - 766,599 Other Assets - 13,549,306 Restricted Assets: Cash, Cash Equivalents, and Investments - 31,332,213 Capital Assets: Non -Depreciable - 7,221,956 Depreciable, Net 226,385 6,461 65,007,023 Total Assets 2,447,966 210,363 168,201,463 Deferred Outflows of Resources Deferred Loss on Refunding Bonds - 1,826,254 Outflow Related to Pension - 1,791,236 Outflow Related to OPEB - 35,771 Total Deferred Outflows of Resources - 3,653,261 Liabilities Accounts Payable and Accrued Liabilities 9,500 59,411 7,044,457 Due to Other Governments 264,906 - 7,554,482 Unearned Revenue - 1,133,325 Deposits - 1,073,992 Accrued Interest Payable - 1,138,200 Non -Current Liabilities Due Within One Year: Bonds and Loans Payable - 1,845,000 Compensated Absences - 433,449 Due In More Than One Year: Bonds and Loans Payable, Net - 55,625,690 Compensated Absences - 754,848 Other Post Employment Benefits - 393,182 Net Pension Liability - 55,969 Total Liabilities 274,406 59,411 77,052,594 Deferred Inflows of Resources Inflow Related to Pension - 729,461 Inflow Related to OPEB - 127,406 Total Deferred Inflows of Resources - 856,867 Net Position Net Investment in Capital Assets 226,385 6,461 20,734,233 Restricted for: Capital Projects - 12,147,594 Debt Service - 2,252,768 Parking Waiver and Transportation 145,200 - 973,890 Parking Surcharge - 438,876 Other 18,000 - 18,000 Unrestricted 1,783,975 144,491 57,379,902 Total Net Position $ 2,173,560 $ 150,952 $ 93,945,263 The notes to the financial statement are an integral part of this statement. 46 City of Miami, Florida Discretely Presented Component Units Statement of Activities For the Fiscal Year Ended September 30, 2021 Expenses Program Revenues Operating Capital Charges for Grants and Grants and Services Contributions Contributions Department of Oft -Street Parking Transportation 36,681,002 47,282,406 1,581,667 Total Department of Off -Street Parking Downtown Development Authority Economic Development 36,681,002 47,282,406 1,581,667 9,227,988 Total Downtown Development Authority 9,227,988 Bayfront Park Parks and Recreation Total Bayfront Park Coconut Grove BID General Government Total Coconut Grove BID Wynwood BID General Government Total Wynwood BID 2,347,698 2,347,698 1,692,077 2,778,328 3,713,052 2,778,328 3,713,052 1,253,831 - 1,692,077 1,253,831 - 1,139,378 1,459,849 - 1,139,378 1,459,849 - Civilian Investigate Panel General Government 1,034,555 - 748,000 Total Civilian Investigate Panel 1,034,555 - 748,000 - Total Component Units $ 52,122,698 $ 52,774,414 $ 748,000 $ 5,294,719 General Revenues: Taxes: Property Taxes Investment Earnings (Loss) Gain of Sale of Capital Assets 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. 47 City of Miami, Florida Discretely Presented Component Units Statement of Activities For the Fiscal Year Ended September 30, 2021 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 12,183,071 - - - 13,764,738 12,183,071 - - - 13,764,738 (9,227,988) - - (9,227,988) (9,227,988) - - (9,227,988) 430,630 - - 4,143,682 430,630 - - 4,143,682 (438,246) - (438,246) (438,246) - (438,246) 320,471 - 320,471 (438,246) 320,471 - (438,246) (286,555) (286,555) (286,555) (286,555) $ 12,183,071 $ (9,227,988) $ 430,630 $ (438,246) $ 320,471 $ (286,555) $ 8,276,102 9,904,090 1,429 31,589 330 780,257 52,967 454,630 141,773 93,921 9,904,090 813,605 52,967 690,324 54,396 10,390,309 142,103 874,178 - 11,460,986 12,237,467 1,162,321 4,285,785 435,932 320,471 (286,555) 18,155,421 47,805,554 6,838,911 11,192,781 7,662,000 1,853,089 437,507 75,789,842 $ 60,043,021 $ 8,001,232 $ 15,478,566 $ 8,097,932 $ 2,173,560 $ 150,952 $ 93,945,263 The notes to the financial statement are an integral part of this statement. 48 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2021 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, 2021. 49 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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). 50 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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 Depailiuent 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 Depattiuent 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 (Little Haiti Revitalization Trust). The City also reports the Firefighters and Police Officers Retirement Trust (FIPO), General Employees and Sanitation Employees Retirement Trust (GESE) and the Elected Officials Retirement Trust (EORT) as fiduciary component units. These pension trust funds are further discussed in Note 10. Discretely Presented Component 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 51 CITY OF MIAN I, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 fiscally dependent and the City is discretely presenting the DDA in the accompanying financial statements. BAYFRONT PARK MANAGEMENT TRUST (`BFP') — The BFP was established by the City in 1987 under the authority of City of Miami Resolution No. 10348. The BFP was created for the purpose of managing and operating the events held at Bayfront and Bicentennial Park and the daily maintenance and upkeep of the grounds, its various amenities including the amphitheater and the Mildred and Claude Pepper Fountain. The governing body of the BFP consists of nine appointed members serving initial terms of one to three years. Upon expiration of an initial term, each successor member may be appointed by the City Commission for terms of one to three years. The BFP has appointed an executive director to act as the chief executive officer, subject to policy directives. The BFP prepares and submits an annual budget request and master plan to the City Commission for its approval for each fiscal year. Therefore, the BFP is fiscally dependent and the City is discretely presenting the BFP in the accompanying financial statements. CIVILIAN INVESTIGATIVE PANEL ("CIP') — The CIP was established by the City of Miami Commission Ordinance Number 12188 on February 14, 2002 for the purpose of creating an independent citizen's oversight panel to conduct investigations related to allegations of police misconduct, review policies, practices and procedures of the police department and perform community outreach programs. The CIP consists of thirteen members who were originally appointed as follows: a) the Miami City Commission selects and appoints nine members, b) the Mayor selects three members whose names 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, 52 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 coordination, funding, implementation and maintenance of all infrastructure improvement, and other projects, utilizing WBID assessment proceeds and other funds identified. The WBID prepares and 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 30,2021. 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 City of Miami Fire Fighters' and Police Officers' Retirement Trust 1895 SW 3' Avenue Miami, Florida 33129 Dept. of Off Street Parking 40 NW 3d Street Suite 1103 Miami, Florida 33128 Downtown Development Authority 200 S. Biscayne Boulevard Suite 2929 Miami, Florida 33131 Civilian Investigative Panel 970 SW 1' Street Suite 305 Miami, Florida 33130 Bayfront Park Mgmt. Trust 301 N. Biscayne Boulevard Miami, Florida 33132-2226 Coconut Grove BID 3390 Mary Street Suite 130 Miami, Florida 33133 Wynwood BID 310 NW 26'' Street Suite 1 Miami, Florida 33127 Liberty City Community Revitalization Trust 4800 NW 11' Avenue Miami, Florida 33127-2218 Little Haiti Revitalization Trust 444 S.W. 2dAvenue Miami, Florida 33130 City of Miami General Employees'Elected Officer's &Sanitation Employees' Retirement Trust 2901 Bridgeport Avenue Miami, Florida 33133 Retirement Trust 444 S.W. 2dAvenue Miami, Florida 33130 53 CITY OF MIANII, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 B. Government -Wide Financial State me nts 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 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 directl: 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 accountec for in this fund. General operating expenditures and capital improvement costs not paid through other funds are paid from this fund. 54 CITY OF MIANII, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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. oEmerge ncy Services Fund- This special revenue fund is used to account for grant expenditures and FEMA reimbursements related to disasters and certain Covid-19 related grant receipts and disbursements. 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 of the City. This fund is designated by management as a major fund for public interest purposes. Additionally, the City reports the following fiduciary funds: oPension Trust Funds —The pension trust funds account for the City of Miami Fire Fighters' and Police Officers' Retirement Trust ("FIPO'), the City of Miami General Employees' and Sanitation Employees' Retirement Trust ("GESE") and Other Managed Trusts (GESE Excess Plan and GESE Staff Plan), and the Elected Officers' Retirement Trust (`FORT'). These funds accumulate resources for pension benefit payments to qualified employees. D. Measurement Focus and the Financial Statement Presentation The government -wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned an expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar item; are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. As a general rule, the effect of interfund activity has been eliminated from the government -wide financial statements. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. 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 arc collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the fiscal period, except for grant revenues which are considered to be available if collected within one year. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to legal fees, compensated absences, insurab claims, pollution remediation obligations, pension benefits and other post -employment benefits are 55 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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 of the 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. 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 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, Payables and Advances 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. 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. 56 CITY OF MIAN I, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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. 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, fiduciary funds and discrete component unit financial statements. Capital assets are defined by the City as assets with an initial cost of $5,000 or more and an estimated useful life in excess of one year. Such assets are recorded at historical cost if purchased or constructed. Donated capita assets are recorded at acquisition value on the date of the donation. Major outlays for capital assets an( improvements are capitalized as projects are constructed. The cost of normal maintenance and repair; 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 57 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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. 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 tc 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. 58 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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. Investments are reported at fair value. Post Employment Benefits Other Than Pensions (OPEB) Pursuant to Section 112.0801, Florida Statutes, the City is required to permit participation in the health insurance program by retirees and their eligible dependents at a cost to the retiree that is no greater than the cost at which coverage is availably for active employees. Retired police officers are offered coverage at a discounted premium under the FOP Health Trust that is administered separately from the City's health care plan. For non -police retirees (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 $ 8,222,192 Revenue Received in Advance - Other 16,905,150 Revenue Received in Advance - Grants 80,001,208 Skyrise Miami - Lease Income 8,483,755 Total $ 113,612,305 59 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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 Obliga/ithes City has accrued for known pollution remediation obligations to address pollution remediation activities such as assessments and clean-ups. Risk Management Under the protection of the sovereign immunity limit, Florida Statutes 768.28 and Chapter 440, Florida Statutes covering Workers' Compensation, the City has established a self -insured program to provide coverage for almost all areas of liability including Workers' Compensation, General Liability, Automotive Liability, Police Professional Liability, Public Officials' Liability, and Employment Practices Liability. Section 768.28, Florida Statutes, provides for waiver of sovereign immunity in tort actions or claims against the state and its agencies and subdivisions. The present limit 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. 60 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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 advances, 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 restricted, committed, or assigned to specific purposes within the General Fund. An assigned fund balance cannot result in an unassigned fund balance deficit. 61 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 The following schedule classifies the City's fund balances as of fiscal year end September 30, 2021: City of Miami, Florida Fund Balance (Deficit) Classification Governmental Funds September 30, 2021 Major Funds General Other Capital Projects Impact Fee Special Von -]Major Total Emergency Obligation Bonds Governmental Governmental Services Projects Funds Funds FUND BALANCES (DEFICIT) Non Spendable: Recycling Trust Fund $ - $ S $ - 8 - $ 1,000,000 $ 1,000,000 Prepaid Items 3,208,504 8.31 1,685 17.173 - - - 11,537,362 Long Term Due from Other Funds 23,900,113 - - 23,900,113 27,108,617 8,311,685 17,173 1,000,000 36,437,475 Spendable: Restricted for: Debt Service (Required by Debt Covenants) - Water Sewer Combination 16,251,275 Park Projects 13,807,900 Capital improvements - 6,790,825 Transportation and Transit 7,605,200 2,564,297 Housing and Urban Development - - Public Safety - 1,921.045 Building 43,723,669 45,000,000 Facilities Improvement - 18,301,152 Public Works 9,643,683 Other 1,398,294 CRA Economic Development - - Human Services 103,561,029 24,159 2,927,353 51,328,869 115,678,471 I03,56 L029 - 2,951,512 18, 842,252 18,842,252 16,251,275 1,341,223 15,149,123 1,550,863 111,902,717 30,444,380 40,638,036 9,942,826 9,942,826 10,144,587 12,065,632 88,723,669 1,245,277 19,546,429 2,402,118 12,045,801 3,365,730 7,691,377 97,600,653 97,600,653 47,898 47,898 587,940 587,940 177,515,747 451,035,628 Committed to: Housing and Urban Development - - - 7,356,539 7,356,539 Capital Improvement 16,315,517 - - 16,315,517 Transportation Projects - 5,251,563 - - - 1,528,484 6,780,047 Public Safety 9,654,495 80,706 9,735,201 Public Works 2,394,635 - - - 750,886 3,145,521 Physical Environment 35,365 35,365 Facilities Improvement - 14,715,564 14,715,564 Parks Projects 4,403,251 - - 2,509,753 6,913,004 Water -Sewer Combination 3,063, 187 - - 3,063, 187 Other - 9,435,871 - - - 36,435,116 45,870,987 Economic Development - 205,881 205,881 Solid Waste - 899,422 - - - 5,655 905,077 Building 413,963 - 413,963 66,582.833 - 48,873,020 115.455,853 Assigned to: Parks Projects 327,409 - 327,409 Post -Retirement Benefits, Self -Insurance Claims and Other 2,811,048 - 2,811,048 Capital Improvement - 1,685,185 - - - 1,685,185 Other - - 4,270,572 4,270,572 2,811,048 2,012,594 - - - 4,270,572 9,094,214 U nassigned: Other (deficit) 76,264,571 (1,355.740) (858,229) (23,606,539) 50,444,063 Total Fund Balance (Deficit) $ 157,513,105 $ 192,585,583 8 103,578.202 $ (1,355,740) $ 2,093,283 $ 208,052,800 $ 662,467,233 62 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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 2018, 2019, an 2020 were approximately $762.6 million. Based on this, the City is required to individually retain a designated and unassigned fund balance of approximately $76.3 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, 2021, the City has $81.2 million of fund balance which meets the above designated fund balance criteria, and has reported an unassigned fund balance of $76.3 million as required in accordance with the City's Financial Integrity Ordinance. These amounts combined equal the total General Fund Balance of $157.5 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, 2021: Fund General: City Clerk Human Resources Equal Opportunity & Diversity Programs Risk Management Building Public Works and Sustainability Resiliency and Sustainability Special Revenue: SHIP Exceeds Budget Authorization 5,915 566 550 37,796 98,795 857,576 16,405 83,495 Budgets are monitored at varying levels of classification detail; however, budgetary control is legally maintained at the fund level except for the General Fund, which is maintained at the departmental level. City departments will work closely with the Budget Department to minimize these instances in the ensuing fiscal year. 63 CITY OF MIAN I, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 Fund Balance (Deficits) The following funds had fund balance deficits in the amounts indicated as of September 30, 2021: Fund Emergency Services Fund General Obligation Bonds Projects Deficit $ 1,355,740 19,860,838 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, however, if not received the General Fund will make a transfer in to this fund to eliminate the deficit For the General Obligation Bonds Projects, the City Commission approved Declarations of Intent, which declares the City's intent to issue bonds and reimburse the Capital Funds. New Accounting Pronouncements The City adopted the following pronouncements for the year ended September 30, 2021: GASB Statement No. 84, Fiduciary Activities. In January 2017, the GASB issued statement No. 84, Fiduciary Activities. The statement improves guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. Effective October 1, 2020, the City of Miami adopted this Statement with no material effect. GASB Statement No. 90, Majority Equity Interests —an amendment of GASB Statements No. 14 and No. 61.The primary objectiveof this Statement are to improve the consistency and compatibility of reporting a government's majority equity interest in a legally separate organization and to improve the relevance of financials statement information for certain component units. Effective October 1, 2020, the City of Miami adopted this Statement with no material effect. GASB Statement No. 93, Replacement of Interbank Offered Rate Some 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 tc the reference rate. The objective of this Statement is to address those and other accounting and financia reporting implications that result from the replacement of a LIBOR. Effective October 1, 2020, the City of Miami adopted this Statement with no material effect. GASB Statement No. 98fhe Annual Comprehensive Financial Report.This Statement establishes the term annual comprehensive financial report and its acronym ACFR. That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. 64 CITY OF MIANII, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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. 65 CITY OF MIAN I, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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 with limits: 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) 66 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 At September 30, 2021, 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 $ 230,293,647 Federal National Mortgage Association 21,490,663 Federal Home Loan Mortgage Corporation 21,057,425 Federal Home Loan Bank 96,263,613 Corporate Notes 44,602,450 Supranational Notes 10,187,577 Commercial Paper 159,911,300 Money Market Fund 35,212 Total Investments 583,841,887 Bank Deposits 205,950,952 Total Pooled Cash, Cash Equivalents and Investments $ 789,792,839 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, 202$20.8 million of the total balance listed above relates to unspent bond and lease proceeds restricted for capital projects. Unspent bond and lease proceeds by debt issue consisted 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 2017 Citywide Radio Equipment Lease 2018C Streets & Sidewalks Total 1,531,901 24,159 446,648 2,135 3,488,678 7,342,508 2,927,353 1,906,948 3,159,222 20,829,552 Interest Rate Risk— Interest rate risk is the risk that changes in market rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in the market interest rates. 67 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 The City's policy limits the maturity of an investment to a maximum of five years. As of September 30, 2021, 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 $ 230,293,647 Federal National Mortgage Association 21,490,663 Federal Home Loan Mortgage Corporation 21,057,425 Federal Home Loan Bank 96,263,613 Corporate Notes 44,602,450 Supranational Notes 10,187,577 Commercial Paper 159,911,300 Money Market Fund 35,212 Total $ 583,841,887 Weighted Average Maturity in Years 0.65 1.74 1.83 0.33 1.98 1.49 0.43 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, 2021, the City owned callable securities with a fair value of $13.03 million. The portfolio's overall weighted average duration was 0.74 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. 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, 2021: Investment Type United States Treasury Notes Federal National Mortgage Association Federal Home Loan Mortgage Corp. Federal Home Loan Bank Corporate Notes Supranational Notes Commercial Paper Money Market Fund Standard &Poor's Credit Rating AA+ AA+ AA+ AA+ A - AAA A-1 AAAm Moody's Credit Rating Balance Aaa $ 230,293,647 Aaa 21,490,663 Aaa 21,057,425 Aaa 96,263,613 A3 44,602,450 Aaa 10,187,577 P-1 159,911,300 Aaa-mf 35,212 Total $ 583,841,887 68 CITY OF MIANII, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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, 2021, the following issuers represent 5 percent or more of the City's investment portfolio: Issuer Percentage Federal Home Loan Bank 16% 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. Governmental bonds/notes, corporate notes, and other fixed income instruments classified in Level 2 of the fair value hierarchy are valued based on significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities or other market corroborated inputs. 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, 2021: Fair Value Measurements Significant Other Observable Inputs Investments by Level: Balance Level2 Debt Securities: United States Treasury Notes $ 230,293,647 $ 230,293,467 FederalNationalMortgage Association 21,490,663 21,490,663 Federal Home Loan Mortgage Corporation 21,057,425 21,057,425 Federal Home Loan Bank 96,263,613 96,263,613 Corporate Notes 44,602,450 44,602450 SupranationalNotes 10,187,577 10,187,577 CommercialPaper 159,911,300 159,911,300 Total Investments by fairvalue level 583,806,675 $ 583,806,675 Measured at Amortized Cost: Money Market Fund 35,212 Total Investments $ $583,841,887 69 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 ElectedOfcer's Retirement Trust (EORT) The EORT Trust follows the City's investment policy. As September 30, 2021, the investments of EORT are as follows: Investment Type Fair Value Money Market Fund $ 7,940,848 The EORT has the following asset allocation as of September 30, 2021: AssetClass Allocation Money Market Fund 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. EORT's investment policy limits the maturity of an investment to a maximum of 5 years. As of September 30, 2021, 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 Money Market Funds Less than 1 year EORT's investments at September 30, 2021, were in compliance with its investment policy at the time of purchase. 70 CITY OF MIANII, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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, 2021, all of the Plan's investments were held in Money Market Funds during the fiscal year. Money Market Funds are authorized by the City's investment policy but are not rated by a major rating agency. Custodial Credit Risk— This is the risk that in the event of the failure of the counterparty, the Plan will not be able to recover the value of its investments or collateral securities that are in the possession of at outside party. The EORT Plan utilizes an independent custodial safekeeping agent for its investments. All investments are held by the plans custodial bank and registered in the plan's name. Concentration of Credit Risk — The Plan's policy establishes limitations on portfolio composition by investment type and by issuer to limit its exposure to concentration of credit risk. The policy provides that a maximum of 20 percent of the portfolio may be invested in SEC registered money market funds with no more than 10 percent to any single money market fund. A maximum of 100 percent of available funds 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 maybe 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, 2021, the EORT 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. At September 30, 2021, EORT's investments were $7,940,848 measured at amortized cost. City of Miami Firefighters and Police Officers Retirement Trust (FIPO) andMiami General Employees and Sanitation Employees Retirement Trust (GESE Trust). The FIPO and GESE Plans each issue stand-alone financial statements. Investment disclosures relating to each Plans' interest rate risk, credit risk, custodial credit risk, concentration of credit risk and related fair value measurement disclosures required by GASB are included in the separate stand-alone plan financial statements. Such disclosures are not required to be included in the City's financial statements herein. The Information can be found or requested to The Board of Trustees and Plan Administrators as follows: City of Miami Fire Fighters' and Police Officers' Retirement Trust 1895 SW 3 Avenue Miami, Florida 33129 (305) 858-6006 https ://www.miamifipo.org/ City of Miami General Employees' & Sanitation Employees' Retirement Trust 2901 Bridgeport Avenue Miami, Florida 33133 (305) 441-2300 https://www.gese.org/ 71 CITY OF MIANII, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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: Special Other Capital Emergency Obligation Non -Major Receivables General Projects Impact Fee Services Bonds Projects Funds Total Accounts 846,714,683 $ 2,145,508 $ 249,784 $ 231 $ 3,774 $ 8,266,010 857,379,990 Property Tax 5,205,995 - - 268,317 5,474,312 Due From Other Governments 7,536,811 18,123,338 15,250,158 12,456,620 53,366,927 Loans Receivable - - 13,823,713 13,823,713 Gross Receivables 59,457,489 20,268,846 249,784 15,250,389 3.774 34,814,660 130,044,942 Less: Allowance for Uncollectibles (21,827,386) (2,143,887) (249,784) (231) (3,774) (19,640,444) (43,865,506) Net Total Receivables $ 37,630,103 $ 18,124,959 S - 5 15,250,158 $ - $ 15,174,216 $ 86,179,436 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 currently working on a deferred payment schedule. The City has recorded an allowance for the full amount of this receivable. On July 22, 2021, the City Commission approved Resolution 21- 0319, which allowed for changes to the payment terms, upon execution of a Second Amendment to the Development Agreement, in a form acceptable to the City Attorney, and further subject to review, approval, and execution by the County. This agreement has not been executed as of the end of the fiscal year. 2.Regular Lease Rent PaymentsBeginning April 1, 2013, Jungle Island is required to pay the rent based upon a "Gross Revenues" monthly calculation. 72 CITY OF MIAN I, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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, 2021, are as follows: Program Loans Outstanding Amount CDBG 49 loans $ 1,955,075 HOME 502 loans 24,981,543 SHIP 279 loans 15,119,226 Other 40 loans 1,917,898 Total 870 loans $ 43,973,742 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, 2021, there are 109 projects aggregating to $92.7 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. 73 CITY OF MIANII, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 Economic Development Commercial Loans As of September 30, 2021, there are 6 loans aggregating to $5.3 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, 2020, upon which the 2020-2021 levy was based, was $65.8 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, 2021, was $7.6665 per $1,000. The debt service tax rate for the same period was $0.3235 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 al September 30, 2021. Property taxes that are not considered "available"have been reported as deferre inflows on the governmental funds balance sheet. 74 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 NOTE 5. — CAPITAL ASSETS The following is a summary of changes in capital assets during the year ended September 30, 2021: Primary Government Beginning Balance Governmental Activities: Capital assets, not being depreciated: Land $ 121,199,691 Constnaction in progress 164,334,377 Total Capital Assets, not being depreciated 285,534,068 Depreciable Assets: Buildings 360,102,494 Improvements 320,643,481 Machinery and equipment 308,092,843 Infrastructure 1,440,519,757 Total capital assets being depreciated 2,429,358,575 Less Accumulated Depreciation for: Buildings 158,980,641 Improvements 254,651,639 Machinery and Equipment 232,834,444 Infrastructure 976,167,208 Total accumulated depreciation 1,622,633,932 Total capital assets being depreciated, net 806,724,643 Governmental activities capital assets, net $ 1.092,258,711 Additions/ Retirements/ Transfers In Transfers Out $ 2,981,357 61,797,118 64,778,475 43,900 1,225,502 7,591,927 15.107,966 $ (1,579,798) (24,123,424) (25,703,222) (203,519) (6,442,086) 23,969,295 (6,645,605) 8,112,482 13,501,280 22,374,066 34,806,318 (1,200) (6,347,278) (44,342) 78,794,146 (6,392,820) (54,824,851) (252,785) $ 9,953,624 $ (25,956,007) Depreciation expense was charged to governmental functions as follows: Function/Program Activities General Government Planning and Development Community Development Community Redevelopment Areas Public Works Public Safety Public Facilities Parks and Recreation Total depreciation expense Cons truc do n Co mmitme nts Depreciation Expenses s 45,414,255 831,758 167,284 1,268,964 6,901,211 14,250,831 3,171,126 6,788,717 $ 78,794,146 Ending Balance $ 122,601,250 202,008,071 324,609,321 360,146,394 321,665,464 309,242,684 1.455.627,723 2,446,682,265 167,093,123 268,151,719 248,861,232 1,010,929,184 1,695,035,258 751.647,007 $ 1,076,256,328 As of September 30, 2021, the City had various construction projects in progress that were not completed with remaining balances that totaled approximately $82.9 million. Funding of these projects will be made primarily from proceeds of the bond issues, loans, future tax revenues and grants. 75 CITY OF MIAN I(, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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, 2021: A summary of the changes in capital assets for DOSP is as follows: Beginning Additions/ Retirements/ Ending Balance Transfers In Transfers Out Balance Capital assests, not being depreciated: Land $ 5,937,211 $ - $ - $ 5,937,211 Construction in progress 398,838 140,378 - 539,216 Total capital assets, not being depreciated 6,336,049 140,378 6,476,427 Capital assets being depreciated Building and structures 90,757,475 (59,658) 90,697,817 Leasehold improvements 11,410,411 11,410,411 Furniture and fixtures 880,805 39,856 920,661 Equipment 8,063,779 199,673 (326,346) 7,937,106 Total capital assests being depreciated 111,112,470 239,529 (386,004) 110,965,995 Less accumulated depreciation for: Building and structures 33,372,386 2,639,835 36,012,221 Leasehold improvements 9,441,685 246,726 9,688,411 Furniture and fixtures 553,845 66,311 620,156 Equipment 4,880,013 987,240 (322,437) 5,544,816 Total accumulated depreciation 48,247,929 3,940,112 (322,437) 51,865,604 Total capital assets being depreciated, net 62,864,541 (3,700,583) (63,567) 59,100,391 DOSP capital assests, net $ 69,200,590 $ (3,560,205) $ (63,567) $ 65,576,818 A summary of changes in capital assets for CIP is as follows: Beginning Additions) Retirements/ Ending Balance Transfers In Transfers Out Balance Capital assets being depreciated: Furniture and equipment $ 21,471 $ - $ - $ 21,471 Less accumulated depreciation for: Furniture and equipment 10,652 4,358 15,010 CIP capital assests, net $ 10,819 $ (4,358) $ $ 6,461 76 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 A summary of the changes in capital assets for DDA is as follows: Capital assets being depreciated: Furniture and equipment Beginning Balance Additions/ Transfers In Retirements/ Transfers Out Ending Balance 778,604 Less accumulated depreciation for: Furniture and equipment 607,988 DDA capital assests, net 61,232 $ 170,616 $ (55,589) $ (10,464) $ 773,783 (10,464) 658,756 - $ 115,027 A summary of changes in capital assets for BFP is as follows: Capital assets, not being depreciated: Land Total capital assets, not being depreciated Capital assets, being depreciated: Buildings Public domain and system infrastructure Machinery and equipment Total capital assets being depreciated Less accumulated depreciation for: Buildings Public domain and system infrastructure Machinery and equipment Total accumulated depreciation Total capital assets being depreciated, net BFP capital assets, net Beginning Additions/ Retirements/ Ending Balance Transfers In Transfers Out Balance $ 516,129 $ 516,129 - $ 516,129 - 516,129 2,637,934 8,975,546 881,434 12,494,914 - - 2,637,934 8,975,546 - (136,850) 744,584 - (136,850) 12,358,064 1,704,825 4,630,343 678,004 7,013,172 5,481,742 - - 1,704,825 - - 4,630,343 - - 678,004 - - 7,013,172 - (136,850) 5,344,892 $ 5,997,871 $ - $ (136,850) $ 5,861,021 77 CITY OF MIANII, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 A summary of changes in capital assets for CGBID is as follows: Capital assets being depreciated: Furniture and equipment Beginning Additions/ Retirements/ Ending Balance Transfers In Transfers Out Balance 745,945 $ 60,112 $ 806,057 Less accumulated depreciation for: Furniture and equipment 287,769 75,022 - 362,791 CGBID capital assests, net $ 458,176 $ (14,910) $ $ 443,266 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 $ 228,991 $ 101,364 S 55,268 48,702 330,355 103,970 $ 173,723 $ 52,662 $ 226,385 Summary of the discretely presented component units capital assets at September 30, 2021 are a follows: DOSP CIP DDA BFP CGBID WBID Total Capital Assets: Non -depreciable $ 6,476,427 $ - $ - $ 516,129 $ - $ - $ 6,992,556 Depreciable, net 59,100,391 6,461 115,027 5,344,892 443,266 226,385 65,236,422 Total $ 65,576,818 $ 6,461 $ 115,027 $ 5,861,021 $ 443,266 $ 226,385 $ 72,228,978 Depreciation expenses were charged to the discretely presented component units as follows: Entity Depreciation Expense DOSP $ 3,940,112 CIP 4,358 DDA 61,232 BFP - CGBID 75,022 WBID 48,702 Total depreciation expense $ 4,129,426 78 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 NOTE 6. — ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities reported in the governmental funds balance sheet at Septembc 30, 2021, consisted of the following: Special Obligation Non -Major Other Capital Emergency Bonds Governmental General Projects Impact Fee Services Projects Funds Total Accounts Payables $10,921,647 $10,587,333 $1,596,036 S2,092,151 $227,362 $9,638,975 $35,063,504 Retainage 116,792 4,068,765 891,304 885,030 158,634 1,451,597 7,572,122 Salaries and Benefits 29,980,233 _ - - - 792,254 _ 30,772,487 Total $ 41,018,672 $ 14,656,098 $ 2,487,340 $ 2,977,181 $ 385,996 $ 11,882,826 $ 73,408,113 NOTE 7. — INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS The balances reflected as due from/due to other funds reported as of September 30,2021 are as follows: Receivable Fund General Fund General Fund General Fund Payable Fund Amount Other Capital Projects Emergency Services Non -Major Governmental Funds $ 1,377,401 14,583,924 1,810,430 Total $ 17,771,755 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) paymen between funds are made. The $14,583,924 balance is mainly attributed to expenditures related tc Hurricane Irma and COVID-19 expenditures to be reimbursed through the Public Assistance Grant Program and CARES Act 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. 79 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 Advance s From/to Othe r funds Receivable Fund Payable Fund Amount General Fund General Fund Non -Major Fund - General Obligation Bonds Projects Special Obligation Bonds Projects $ 19,537,048 4,363,065 Total $ 23,900,113 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. Balances are not scheduled to be collected in the subsequent year ar therefore have been reported as advances. The following is a summary ofinterfund transfers reported for the fiscal year ended September 30, 2021: Transfer In Non -Major Other Capital Governmental Transfer Out General Projects Impact Fee Funds Total General Fund $ $ 64,622,967 - $40,590,508 $ 105,213,475 Special Obligation Bonds Project - 85,000 85,000 Nonmajor Governmental Funds 5,605,699 9,789,167 2,266,058 16,869,422 34,530,346 Total $ 5,605,699 $ 74,412,134 $ 2,266,058 $ 57,544,930 $ 139,828,821 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 (i 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 $105.2 million. This total was comprised of transfers of $64.6 million to the Other Capital Projects fund and $40.6 million to Non - Major Governmental funds. The $64.6 million transferred to Other Capital Projects were allocated to various capital improvement projects as follows: $48.9 million to building projects including a new administration building. $1.3 million of Stormwater Utility Fees collected from Miami -Dade County were transferred for stormwater related capital improvements, $1.3 million for Resilience and Public Works fleet vehicle replacements, $2.7 million to contribute to various public facilities' capital projects, $3.7 million are contributions for capital projects for the Fire depailiuent, $3 million to IT department for Oracle Cloud Startup, $0.6 million for Parks depaitruent capital improvements, $1.2 million for capital projects for other departments such as Solid Waste, Risk Management and Communications, $1.3 million are marina revenues allocate, to cover public facilities capital requirements and $0.6 million of local option gas tax was transferred for various capital improvements. 80 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 The $40.6 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: $3.3 million transferred to fund citywide festivals and special events and Anti -Poverty Initiative programs, $3.0 million to Police Special Revenue fund as a grant match. $9.2 million from the Public Service tax proceeds was allocated to various SOB funds, $3.3 is General fund contribution to applicable SOB debt, $5.0 million from Parking Surcharge and Local Option Fuel tax to Streets' bond, $11.2 million transferred for Vehicle Lease debt service payments, $0.5 million was designated to FDEP Wagner Creek loan payment, $2.2 million allocated to Flex Park Remediation, $1.9 million allocated to Citywide Radio Communication system and $0.7 million for Fire Rescue UASI. Payments for debt service are an allowable use of these revenue sources. Also included in this fiscal year's transfers are $34.5 million from Non -Major Governmental funds. This total was comprised of $5.6 million to the General fund, $9.8 million to Other Capital Projects, $16.8 million to Non -Major Governmental funds and $2.3 million to Impact Fee. The $5.6 million to the General fund from Non -Major Governmental fund consists primarily of $4.8 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 payments related to Gibson Park. The $9.8 million to Other Capital Projects includes: $5.6 million contribution from Planning Development of Regional Impact to capital projects for Brickell Key bridge repairs, $2.0 million from OMNI CRA for improvements at Museum Park, $1.0 million to fund the new CAD System for police services, $1.0 million from Public Works micro mobility fees to fund capital projects, and $0.2 million from Planning Tree Trust Fund contributions to city-wide capital projects. The most relevant transactions within the $16.8 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, $3.3 million from the Transportation and Transit Special Revenue fund for Streets Bond debt service, and $0.7 million to Transit Capital fund, for capital projects. $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, and $1.0 million contribution for Mayor's Elderly Rent Credit Program. Finally, there was $2.3 million transferred from General Obligation Bonds to Impact Fee for District 3 Land Acquisition. 81 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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, 2021: Primary Government General Obligation Bonds - Direct Placement Other Direct Placements Special Obligation and Revenue Bonds 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 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 Additions 50,520,419 50,520,419 50,520,419 29,999,975 71,925,351 90,462,504 40,604,412 232,992,242 Reduction (20,895,000) (21,803,896) (16,660,000) (59,358,896) (855,846) (60,214,742) (21,653,188) (75,806,135) (97,459,323) Ending Balance 94,345,000 305,622,520 139,600,000 539,567,520 5,689,227 545,256,747 82,659,616 231,170,181 95 8,411,935 1,034,749,059 2,306,990,791 Due within One Year 23,065,000 27,364,832 9,295,000 59,724,832 59,724,832 7,020,597 40,947,469 47,968,066 $ 2,726,408,942 $ 283,512,661 $ (157,674,065) $ 2,852,247,538 $ 107,692,898 Claims payables, compensated absences, net pension liability, and other post -employment benefits at generally liquidated by the General Fund. Claims payable balance of $231.2 million includes an accrual of $1.6 million for pollution remediation obligations, which are obligations to address the current or potential detrimental effects of existing pollution and $49.2 million for potential legal claims as discussed in Note 12. Claims payables of $180.4 million reported in connection with the City's self-insurance program is discussed in Note 9. 82 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 Bonds, Loans and Leases Outstanding The following presents the City's bonds, loans and leases outstanding at September 30, 2021: 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 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 CRA SEOPW Tax Increment Revenue Bonds Series 2014A-1 Total Special Obligation and Revenue Bonds, Loans and Leases Other Direct Placements: 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 Special Obligation Non -Ad Valorem Revenue Refunding Note Taxable Series 2020 Taxable Special Obligation Parking Revenue Refunding Note Series 2019 Special Obligation Non -Ad Valorem Tax -Exempt Revenue Bonds Series 2021 CRA OMNI Tax Increment Revenue Bonds Series 2018A CRA OMNI Tax Increment. Revenue Bonds Series 2018B Gran Central Corporation Loan Vehicle Replacement Program Series 2017 Vehicle Replacement Program Series 2018 Vehicle Replacement Program Series 2020 #1 Vehicle Replacement Program Series 2020 #2 Vehicle Replacement Program Series 2021 Dell Financial Services Lease 2018 P25 Citywide Radio Equip. Lease State Revolving Fund Loan Total Other Direct Placements Total Bonds, Loans and Leases Purpose of Issue Refunding Refunding Maturity Date Amount Outstanding Interest Rate Issued Balance Range 1/1/2028 57,240,000 48,965,000 2.640% 1/1/2029 114,380,000 45,380,000 2.170% 171,620,000 94,345,000 eases: Refunding 1/1/2037 Refunding 1/1/2039 Refunding 1/1/2039 Refunding/Port Tunnel 3/1/2030 Redevelopment 3/1/2030 Park Improvements Refunding Refunding Refunding Refunding Refunding/Port Tunnel Refunding FP&L Underground Redevelopment Redevelopment Redevelopment Vehicle Lease Vehicle Lease Vehicle Lease Vehicle Lease Vehicle Lease Equipment Lease Radio System Lease Wagner Creek 57,405,000 42,620,000 7,455,000 44,725,000 50,000,000 53,265,000 40,520,000 6,965,000 5,675,000 33,175,000 202,205,000 139,600,000 5.000% 3.686%-4.808% 3.836%-4.808% 5.000% 5.000% 1/1/2032 27,160,000 20,910,000 2.560% 7/1/2026 18,049,380 5,241,343 3.280% 2/1/2031 59,310,000 55,600,000 2.780% '2/1/2025 7,180,000 6,295,000 3.150% 7/1/2027 16,555,000 14,070,000 3.750% 3/1/2030 28,035,000 27,520,000 2.110% 1/1/2039 75,540,000 74,850,000 4.200% 1/1/2041 24,435,000 24,435,000 2.4600% 9/1/2029 10,000,000 7,275,000 3.250% 9/1/2029 15,000,000 11,665,000 4.490% N/A 1,708,864 1,708,864 0.000% 1/1/2022 10,054,922 2,066,377 2.1856% 1/1/2023 11,270,011 4,603,760 3.1032% 1/1/2025 9,256,279 7,424,104 1.1670% 1/1/2025 16,318,888 12,979,3 61 1.8076% 1/1/2026 9,766,531 9,766,531 1.5750% 6/1/2022 373,938 78,260 4.8810% 1/1/2024 12,100,000 5,388,721 2.0590%© N/A 13,745,199 13,745,199 0.000% 365,859,012 305,622,520 $ 739,684,012 $ 539,567,520 83 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 Annual Debt Service Requirements to Maturity At September 30, 2021, the annual debt service requirements of the debt is listed below: Year Ended September 30, 2022 2023 2024 2025 2026 2027-2031 2032-2036 2037-2041 Total Bonds and Notes for Direct Placement Principal Interest $ 50,429,830 $ 10,622,397 34,565,799 9,659,670 38,794,735 8,759,967 37,847,506 7,821,106 36,764,555 6,837,071 125,030,520 21,898,453 48,395,711 10,126,387 28,138,864 1,760,466 $ 399,967,520 $ 77,485,517 Long -Term Debt Issued for all bonds, loans and leases, over the Special Obligation, Revenue Bonds, Loans and Leases Principal Interest $ 9,295,000 9,745,000 7,170,000 7,525,000 7,890,000 42,010,000 31,905,000 24,060,000 $ 6,566,345 6,107,444 5,700,234 5,347,044 4,974,739 18,605,362 9,907,227 1,795,987 $ 139,600,000 Total Principal Interest $ 59,724,830 44,310,799 45,964,735 45,372,506 44,654,555 167,040,520 80,300,711 52,198,864 $ 17,188,742 15,767,114 14,460,201 13,168,150 1 1,81 1,810 40,503,815 20,033,614 3,556,453 $ 59,004,382 $ 539,567,520 $ 136,489,899 The following is a summary of debt issued during the fiscal year September30, 2021: o $16,318,888 Vehicle Replacement Program Series 2020 #2 n- October 28, 2020, the City obtained a $16,318,888 Lease from Santander Bank, N.A. under a Master Lease Purchase Agreement. The lease was issued with an interest rate of 1.8076% and maturity date ofJanuary 1 2025. The purpose of the lease is to purchase police and fleet vehicles and to pay financing costs At the end of the lease, the City will own the vehicles outright; the City is not pledging any revenue as security for the lease. The vehicles themselves will collateralize the lease o $24,435,000 Special Obligation Tax -Exempt Revenue Bonds Series 2021 (FP&L Undergrounding Project) —On June 17, 2021, the City issued $24,435,000 Special Obligation Non -Ad Valorem Tax -Exempt Series 2021 (FP&L Undergrounding Project) with an interest rate of 2.46% and a maturity date ofJanuary 1, 2041. The Bond is being issued to (i) pay for capital improvements to be undertaken on behalf of the City by Florida Power and Light, Inc. to install underground transmission facilities within the City's limits which represents the City's contribution to the cost of the project; and (ii) pay for the related cost of issuance of the Series 2020 Bonds. o $9,766,531 Vehicle Replacement Program Series 2020n July 28, 2021, the City obtained a $9,766,531 Lease from Santander Bank, N.A. under a Master Lease Purchase Agreement. Thf lease was issued with an interest rate of 1.575% and maturity date of January 1, 2026. 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. 84 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 Terms Specified in Debt Agreements The City's total outstanding bonds related to public offerings are $139,600,000. 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 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 $399,967,520. They are listed below with their events of default information. o General Obligation Refunding Bond Series 20Af -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 20AR 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 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 of the fixed rate plus 4% per annum or the maximum rate permitted by law of 18% per annum simple interest (Florida Statutes 687.02(01). 85 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 o Special Obligation Refunding Bonds Series 20101 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 of the 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 (2017-202l-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 2010 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 2Ah7e-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 Septeni' a020, 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 due under the Note are paid in full. o Special Obligation Non -Ad Valorem Tax -Exempt Revenue Bonds Series 2021 (FP&L Undergrounding Project) An event of default is a failure to make payment of principal on the Bonds when due, or any other required payment. In the event of default, the lender may sue to protect and enforce any and all rights. o CRA Omni Tax Increment Revenue Bonds Series 2018A & 201k18Bvent 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. 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 86 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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 Cree r-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 Depailiuent 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 Authorize d but Unis s ue d As of September 30, 2021, the City has authorized but not issued the following debt: On July 9, 2015, the City commission adopted resolution #15-0304 approving a design and construction loan to the City for an amount not to exceed $22,413,800 from the State of Florida Department of Environmental Protection Clean Water State Revolving Fund Program for the Wagner Creek Seybold Canal Project. As of September 30, 2021, the City has $8,668,601 available for draw down from the State. On November 17, 2016, the City Commission approved resolution #16-0563 for a declaration of intent to issue tax-exempt and/or taxable special obligation bonds in the expected total maximum principal amount of $45,000,000. This was done to reimburse the City for eligible expenses incurred with respect to certain capital improvement projects at the Miami Marine Stadium and the associated Welcome Center and Museum Complex. On January 2, 2017, the City Commission approved resolution #17-0020 for a declaration of intent to issue tax-exempt and/or taxable special purpose improvement bonds in the expected total maximum principal amount of $18,000,000. This was done to reimburse the 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 improvementportions 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 Commission approved $58 million of the $400 million Miami Forever Bond voted by residents in November 2017. The $58 million will fund the first set of Miami Forever Bond projects. The City of Miami will use the proceeds as follows: $10.3 million toward fighting sea level rise, including a redesign of Brickell Bay Drive and the installation of 50 new one-way valves; $15 87 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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 approximately 4 miles of roadways; and $25.8 million to enhance the City's public parks, including upgrading playgrounds, repairing sidewalks, and enhancing accessibility. On June 27, 2019, the City commission adopted resolution #19-0256 approving the issuance of its tag exempt and taxable special obligation bonds or any other financing mechanism advantageous to the Cit 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 Southwest 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. On January 28, 2021, the City Commission approved the declaration of intent to issue both taxable am 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. The proceeds will 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. Defeasance of Long -Term Debt The City has defeased certain debt with advance refundings. The proceeds of the new bonds were placf in an irrevocable trust to provide for all future debt services payments on the defeased debt series. At September 30, 2021, the following outstanding debt is considered defeased: Type SOB Refunding Bonds Capital Lease Obligations Principal Date of Amount Principal Series Defeasance Call Date Defeased Outstanding 2012 7/17/2020 3/1/2023 $24,855,000 $24,855,000 The City has entered into agreements as lessee for financing the acquisition of police and fleet vehicles it the amount of $56,666,631. The lease agreements qualify as capital leases for accounting purposes an therefore, have been recorded at the present value of their future minimum lease payments as of th inception date. At year end the cost and accumulated depreciation of assets under lease were $67. million and $27.4 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 Depailiuent, and General Services Administration Depaituientin the amount o $12,100,000. The lease agreement qualifies as a capital lease for accounting purposes and, therefore, 1 been recorded at the present value of their future minimum lease payments as of the inception date. A fiscal year end, $10.2 million of assets were acquired to be prepared for its intended use; therefore, they 88 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 is no depreciation to report. Additionally, at year end there was $1.9 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, hal 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 $249,29 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, 2021: YearEnding September30, 2022 2023 2024 2025 2026 Total minimum lease payments Less: amount representing interest Present value of minimum lease payments Synopsis of Bond Covenants Technology Police and Fleet Equipment Vehicles $ 82,080 $ 11,812,485 9,687,536 7,331,944 - 7,331,944 - 2,028,667 Network System $ 1,861,516 1,861,516 1,861,516 Total $ 13,756,081 11,549,052 9,193,460 7,331,944 2,028,667 82,080 (3,820) 38,192,577 (1,352,444) 5,584,548 (195,827) 43,859,204 (1,552,092) $ 78,260 $ 36,840,133 $ 5,388,721 $ 42,307,112 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, 2021, the statutory debt limitation of assessed non-exemp property value for the City amounted to $9.64 billion providing a debt margin of $9.55 billion after consideration of $94.35 million of general obligation bonds outstanding at September 30, 2021 and adjusted for the fund balance of$6.58 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, 2021, the City had approximately $9. i million available in the sinking fund to meet this requirement. Principal and interest to be paid in subsequent years totals $291.2 million on all other Special Obligation debt of the City. 89 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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 Interest paid for the current year were $3.44 and $4.92 million, respectively. The current year pledged revenues were (i) $17.25 million (ii) $7.04 million and (iii) $3.74 million, respectively for the 2018 A, B, and C Bonds. Principal and interest to be paid in subsequent years totals $77.37 million on the Serie! 2018Abonds, $63.62 million on the Series 2018B bonds, and $10.31 million on the Series 2018C bonds. The City further pledged future revenue proceeds of (i) 100 percent Convention Development Taxes anc (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 $115.26 million on the Serie 2019 bonds and $16.03 million on the Series 2018 bonds. The total pledge revenue collected during th( year was approximately $5.29 million and total principal and interest payments during the year were $1.84 million and $3.74 million, respectively. 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. HFA had no asset, liabilities, net position or activities to report as of and for the fiscal year ended 2021. Proceeds from these bond issues were used to finance construction of buildings an parking facilities; land acquisitions; equipment purchases including beds and other medical apparatus renovation 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, 2021, the HFA conduit debt activity and outstanding balance totaled $39.9 million. Debt Issue Beginning Balance Principal Payment Outstanding Balance Series 2017 $ 40,895,000 $ 990,000 $ 39,905,000 The scheduled debt service payments were made by Miami Jewish Home and the payments are current. 90 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 Discretely Presented Component Units Long -Term Debt Department of Off -Street Parking (DOSP) The changes in DOSP's long-term debtfor2021 are as follows Bonds Payable Premium (discount) Compensated absences Net Pension Liability Other post -employment benefit liability (OPEB) Loan from primary government Beginning Balance Additions Reductions $ 52,180 $ 6,847 979 513 660 378 15 750 $ 61,647 S 1,300 856 627 457 150 $ 675 $ 3,390 (in thousands): Ending Balance Due Within One Year $ 50,880 $ 1,695 5,991 - 1,012 431 56 393 600 150 $ 58,932 $ 2,276 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, 2021 is $0.6 million. The following summarizes the debt service to maturity of outstanding DOSP debt atSeptember 30, 2021: Year Ending September 30, Principal 2022 $ 1,695,000 2023 1,785,000 2024 1,870,000 2025 1,970,000 2026 2,065,000 2027-2031 11,970,000 2032-2036 15,100,000 2037-2041 14,425,000 2042-2046 - Total S 50,880,000 Bonds Loan Interest Total Principal $ 2,234,025 $ 3,929,025 2,147,025 3,932,025 2,055,650 3,925,650 1,959,650 3,929,650 1,858,775 3,923,775 7,597,000 19,567,000 4,458,625 19,558,625 1,182,300 15,607,300 $ 150,000 150,000 150,000 150,000 S 23.493.050 S 74,373,050 $ 600.000 Range of Rates 4.25%-5.66% 91 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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, automotive liability, police professional liability, public officials' liability, and employment practices liability. The City also purchases excess insurance coverage to limit catastrophic losses associated with its liability exposure, The excess liability insurance program provides for $10 million in total limits on the general liability and auto liability lines of coverage with a self insured retention limit of $1,000,000. The excess insurance program also provides excess statutory workers' compensation coverage subject to a self-insurec retention limit of $1,750,000 for Police and Fire, with $1,000,000 self insured retention limit on all other employees or class codes. The program also provides 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 and aggregate basis. The City's master property insurance program provides an insured limit of $100 million. The City's total insured value on covered property is approximately $589 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 $100,000 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 $350,000. 92 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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. At September 30, 2021, the total estimated undiscounted liability is recorded in the government -wide financial statements. Changes in the claims and other litigation related liability amounts for 2021 and 2020 were as follows: Fiscal Year Ended September 30, 2021 2020 Beginning of Fiscal Year Liability $ 235,050,965 242,389,475 Current Year Claims and Changes in estimates Claim Payments $ 71,925,351 $ (75,806,135) 64,097,568 (71,436,078) Balance at Fiscal Year End $ 231,170,181 235,050,965 Settled claims have not exceeded the City's aggregate excess coverage in force for the last three years. 93 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 NOTE 10. — PENSIONS The City sponsors separate single -employer, defined benefit pension plans under the administration and management of separate Boards of Trustees: the City of Miami Fire Fighters and Police Officers Retirement Trust (FIPO), the City of Miami General Employees and Sanitation Employees Retirement Trust and Other Managed Trusts (GESE), and the City of Miami Elected Officers' Retirement Trust (EORT). Thereafter the Plans. Investments are reported at fair value. Basis of Accounting The financial statements for the Plans are prepared using the accrual basis of accounting. All Plans are reported as pension trust funds in the City's financial statements. Plan member contributions are recognized in the period in which the contributions are due. Employer contributions are recognized when due. Benefits and refunds are recognized when due and payable in accordance with tht 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, 1895 SW 3 Avenue, Miami Florida, 331211,ttps://www.miamifipo.org/. Plan Description FIPO is a single -employer, defined benefit plan established by the City pursuant to the provisions and requirements of Ordinance No. 10002 as amended. Participants are contributing police officers and fire fighters with full-time employment status in the Police or Fire Department of the City. As of September 30, 2021, membership in the FIPO consisted of the following: Members Retirees and beneficiaries currently receiving benefits 2,341 Inactive plan members entitled but not yet receiving benefits 27 Active plan members- vested 842 Active plan members- non -vested 1,089 Total 4.299 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 witl ten or more years of creditable service or eligibility for rule of 64 retirement for police officer members, or eligibility for rule of 68 for firefighter members, the normal retirement age shall be 50 years of age with ten or more years of creditable service, or rule of 64 retirement for police officer members, or rule of 68 for firefighter members. 94 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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 1/2 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 IPA was established. The agreement included the following: (a) the funding method was changed to an aggregate cost method; (b) all accounts were combined for investment purposes (membership and benefits, COLA I, and COLA II); (c) retirees receive additional COLA benefits; and (d) active members no longer contribute 2 percent of pretax earnings to fund the original retiree COLA I account. The COLA II account is funded annually by a percentage of the excess investment return from the COLA I account assets. The excess earnings contributed to the COLA II account are used to fund a minimum annual payment of $2.5 million, increasing by 4 percent compounded annually. To the extent necessary, the City will fund the portion of the minimum annual payment not funded by the annual excess earnings no later than January 1 of the following year. For the year ended September 30, 2021 approximately $7.2 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 Ihlc(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. 95 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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, 2021 amounted to $178.1 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, 2021 amounted to $17.8 million. 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, 2021 amounted to $0.9 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. 96 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 The payroll for employees covered by FIPO for the year ended September 30, 2021 was approximately $178.5 million. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the year ended September 30, 2021, the average active employee contribution rate was 10 percent of annual pay, and the City's average contribution rate was 39.2 percent of annual covered payroll. Employer contributions for the fiscal year 2021 totaled approximately $70.0 million. Net Pension Liability The components of the net pension liability for FIPO at September 30, 2021, are as follows: FIPO Total pension liability Plan fiduciary net position Net pension liability $ 2,477,962,324 (1,783,768,581) $ 694,193,743 Plan fiduciary net position as a percentage of total pension liability 71.99% Actuarial Assumptions The total pension liability was based on an October 1, 2020 actuarial valuation rolled forward to the measurement date of September 30, 2021, using the following assumptions, applied to all periods included in the measurement: Actuarial Assumptions Measurement Date September 30, 2021 Inflation 2.60% Actuarial cost method Entry age cost method Projected salary increases 3.25% - 9.75%, average, including inflation Cost -of -living adjustments Amount varies annually with the adjustment on January Assumed rate of return 7.00% compounded annually, net of pens ion plan on investments investment expense including inflation. The actuarial assumptions used in the October 1, 2020 valuations were based on the results of an actuarial experience study for the period October 1, 2017 to September 30, 2020. Mortality rates are calculated with the Florida Retirement System Pub-2010 Generational scale MP-2018 generationally for allhealthy retirees. 97 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 Changes in Benefit Ten isidActuarialAssumptions The interest rate assumption changed from the assumption of7.34% used in the prior actuarial valuation. The retirement rates were changed for all active participants since they are now eligible for the Forward DROP. The retirement rates change is in accordance with the experience study completed January 2021 The withdrawal and disability rates were also changed in accordance with this experience study. The long-term expected rate of return on pension plan investments was determined in accordance with Actuarial Standard of Practice (ASOP) No. 2S77lection 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, 2021 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 1.78% 5.50% 5.90% 4.73% 6.30% Real rates of return are net of the long-term inflation assumption of 2.60% for 2021. Discount Rate The discount rate used to measure the total pension liability was 7.00 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. 98 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 Changes in Net Pension Liability The following table shows the FIPO changes in net pension liability based on the provided to the City at September 30, 2021: Balance at 10/01/2020 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 09/30/2021 Total Pension Liability (a) $ 2,227,232,505 33,080,765 159,732,358 119,271,883 29,131,987 77,759,117 (168,246,291) 250,729,819 FIPO Increase (Decrease) Plan Fiduciary Net Position (b) $ 1,566,130,574 69,982,149 15,892,461 302,211,711 (168,246,291) (2,202,023) 217,638,007 $ 2,477,962,324 $ 1,783,768,581 Sensitivity of the Net Pension Liability to Changes in the Discount Rate actuarial information Net Pension Liability (a) - (b) $ 661,101,931 33,080,765 159,732,358 119,271,883 29,131,987 77,759,117 (69,982,149) (15,892,461) (302,211,711) 2,202,023 33,091,812 694,193,743 The following table illustrates the impact of interest rate sensitivity on the FIPO net pension liability as of September 30, 2021: Net Pension Liability 1% Decrease (6.00%) $ 969,793,261 Current Discount Rate (7.00%) $ 694,193,743 1% Increase (8.00%) $ 463,132,987 99 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 Pension Expense and Deferred Oufasllnflows of Resources Related to Pension For the year ended September 30, 2021, the City recognized pension expense of $188 million. At September 30, 2021 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 90,018,116 $ - 76,300,241 62,066,181 - 121,276,460 $ 166,318,357 $ 183,342,641 Amounts reported as deferred outflows ofresources and deferred inflows ofresources related to pension; will be recognized in pension expense as follows: Year ending September3V: 2022 $7,133,805 2023 (3,873,796) 2024 (11,396,376) 2025 (21,549,205) 2026 12,661,288 Thereafter $ (17,024,284) GENERAL EMPLOYEES' 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 approv ldfytlf(5City commission. The audited financial statements for the GESE Plans can be obtained from the pension board at: GESE Trust, 2901 Bridgeport Avenue, Coconut Grove, Florida 33133, https://www.gese.org/. 100 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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, 2020, membership in the GESE consisted ofthe following: Members Retirees and beneficiaries currently receiving benefits 1,891 Terminated members entitled to benefits but not yet receiving benefits 271 Active employees 1,967 Total 4.129 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 16 to 20 years of service and 2.75 percent for service over 20 years. Effective September 30, 2012, for members not eligible to retire on that date, member retirement allowances shall not exceed $80,000. Any member who has accrued a benefit in excess of the maximum benefit as of September 30, 2012 will retain that benefit but will not accrue any additional benefit. Members eligible to receive accumulated sick and vacation leave from the City are able to transfer the amount to an eligible retirement plan. The GESE Trust facilitates the transfer of accumulated sick and vacation leave to any eligible retirement plan and is pursuant to Section 40-266 of the City Code. 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. 101 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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 AdjustmdifCOLA) 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 Pk(i&ROP) 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, 2021 amounted to $3.7 million. The DROP balance for the year ended September 30, 2021 amounted to $33.5 million and is recorded with the plans investments on the statements of Fiduciary Net Position. 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 102 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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, 2021 amounted to $652,352. 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, 2021 was approximately $129.9 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, 2021, the average active employee contribution rate was 11.16 percent of annual pay, and the City's average contribution rate was 41.66 percent of annual payroll. Employer contributions for fiscal year 2021 totaled $54.1 million. Net Pens ion Liability The components ofthe net pension liability ofthe GESE Trust at September 30, 2021, are as follows: GESE Trust Total pension liability $ 1,104,035,020 Plan fiduciary net position (774,433,922) Net pension liability Plan fiduciary net position as a percentage of total pension liability 29,601,098 70.15% 103 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 ActuarialAss umptions 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: Actuarial Assumptions Measurement Date Inflation Projected salary increases Assumed rate of return on investments September 30, 2020 2.5% 4% - 8.75%, including inflation 7.45% per year, net of pension plan investment expense and inc inflation The rates of mortality are according to the following tables: Pre -Retirement Mortality Female: PUB-2010 Headcount Weighted General Below Median Employee Female Table Male: PUB-2010 Headcount Weighted General Below Median Employee Male Table, set back 1 year Projection Scale:MP-2018 Post -Retirement Healthy Mortality Female: PUB-2010 Headcount Weighted General Below Median Healthy Retiree Female Table Male: PUB-2010 Headcount Weighted General Below Median Healthy Retiree Male Table, set back 1 year Projection Scale:MP-2018 Post -Retirement Disabled Mortality Female: PUB-2010 Headcount Weighted General Disabled Retiree Female Table, set forward 3 years Male: PUB-2010 Headcount Weighted General Disabled Retiree Male Table, set forward 3 years Projection Scale: MP-2018 Changes of Assumption The discount rate used to measure the total pension liability decreased from 7.60% to 7.45% and the inflation rate decreased from 3.5% to 2.5%, and the assumed rate of return on investments decreased from 7.6% to 7.45%. The mortality tables used were changed from the prior year which used the RP2000 Generational tables. 104 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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 estimates of real rates of return for each major asset class included in the pensions Plan's target asse allocation as of September 30, 2021 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 7.45 percent. The projection of cash flows used to determine the discount rate assumed thatPlan member contributions willbe made atthe current contribution rates and that contributions from the City willbe 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, 2021 GESE Trust Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (a) (6) (a) - (b) Balance at 10/01/2020 $ 1,054,074,679 $ 733,864,555 $ 320,210,124 Changes for the year: Service Cost 18,328,598 18,328,598 Interest 77,267,497 77,267,497 Changes of benefit terms 13,656,820 13,656,820 Differences between expected and actual experience 17,095,189 17,095,189 Changes of assumptions (1,593,601) (1,593,601) Contributions - employer - 49,923,146 (49,923,146) Contributions - member 14,457,555 (14,457,555) Net investment income 50,886,836 (50,886,836) Benefit payments. including refunds of member contributions (74,794,162) (74,794,162) - Administrative expenses and other - (95,992) (95,992) Net Changes 49,960,341 40,569,367 9,390,974 Balances at 09/30/2021 $ 1,104,035,020 $ 774,433,922 $ 329,601,098 105 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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 Trust net pension liability as of September 30, 2021: Current Discount 1 % Decrease Rate 1 % Increase (6.45%) (7.45%) (8.45%) Net Pension Liability $ 445,344,570 $ 329,601,098 $ 231,788,922 Pension Expense and Deferred OufirlInflows of Resources Related to Pension For the year ended September 30, 2021, the City recognized pension expense of $51.4 million. At September 30, 2021 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 $ 26,567,270 $ 1,328,304 Changes of assumptions 16,801,907 1,285,956 Net difference between projected and actual earnings on pension plan investments - 3,841,487 Employer contribution made subsequent to measurement date 54,121,724 - Total $ 97,490,901 $ 6,455,747 There is $54.1 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, 2022. Other amounts reported will be recognized in pension expense as follows: Ye a r ending September 3tb: 2022 $ 13,843,394 2023 11,998,005 2024 6,729,258 2025 3,804,110 2026 538,663 $ 36,913,430 106 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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, 2020, the date of the most recent actuarial report valuation, membership in the EBP consisted of 30 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, 2021 was approximately $129.9 million. The City's contribution to the plan for the year ended September 30, 2021 was $364,502 and plan benefit payments were $364,502. Net Pension Liability The components of the net pension liability of the GESE EBP at September 30, 2021, are as follows: GESE EBP Total pension liability $ 7,407,128 Plan fiduciary net position Net pension liability $ 7,407,128 Plan fiduciary net position as a percentage of total pension liability 0% 107 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 ActuarialAss umptions 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: Actuarial Assumptions Measurement Date September 30, 2020 Inflation 2.50% Projected salary increases 4% - 8.75%, including inflation Investment rate of return Not applicable, the plan has no assets for investments Discount rate 2.21% The rates of mortality are according to the following tables: Pre -Retirement Mortality Female: PUB-2010 Headcount Weighted General Below Median Employee Female Table Male: PUB-2010 Headcount Weighted General Below Median Employee Male Table, set back 1 year Projection Scale:MP-2018 Post -Retirement Healthy Mortality Female: PUB-2010 Headcount Weighted General Below Median Healthy Retiree Female Table Male: PUB-2010 Headcount Weighted General Below Median Healthy Retiree Male Table, set back 1 year Projection Scale:MP-2018 Post -Retirement Disabled Mortality Female: PUB-2010 Headcount Weighted General Disabled Retiree Female Table, set forward 3 years Male: PUB-2010 Headcount Weighted General Disabled Retiree Male Table, set forward 3 years Projection Scale: MP-2018 Changes of Assumption The discount rate used to measure the total pension liability decreased from 2.81% to 2.21% and the inflation rate decreased from 3.50% to 2.50%. Additionally, the mortality tables were changed from the prior year which used the RP2000 Generational tables. Long Term Rate of Return The Excess Plan has no assets therefore there is no long term rate of return. 108 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 Discount Rate The discount used to measure the total pension liability was 2.21 percent (a decrease of 0.6 from the prior year rate of 2.81 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, 2021 was applied to all periods of projected benefit payments. As a result, the Single Equivalent Interest Rate (SEIR) is also 2.21 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. 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, 2021: GESE EBP Increase (Decrease) Total Pension Plan Fiduciary Net Net Pension Liability Position Liability (a) (b) (a) - (b) Balance at 10/01/2020 $ 8,225,157 $ - $ 8,225,157 Changes for the year: Interest 225,257 - 225,257 Differences between expected and actual experience (1,061,015) - (1,061,015) Changes of assumptions 435,484 - 435,484 Contributions - employer - 417,755 (417,755) Benefit payments, including refunds of member contributions (417,755) (417,755) - Net Changes (818,029) - (818,029) Balances at 09/3012021 $ 7,407,128 $ $ 7,407,128 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, 2021: Current Discount 1% Decrease Rate 1% Increase (1.21%) (2.21%) (3.21%0) Net Pension Liability $ 8,619,039 $ 7,407,128 $ 6,453,982 109 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 Pension Expense and Deferred Outfit ilnflows of Resources Related to Pension For the year ended September 30, 2021, the City recognized a credit to pension expense of $549,243. A September 30, 2021 the City reported deferred outflows and inflow of resources from the following source: GESE EBP Deferred Outflows of Deferred Inflows of Resources Resources Differences between expected and actual experience $ $ 3,019,597 Changes of assumptions 1,149,984 286,335 Employer contribution made subsequent to measurement date 364,502 - Total $ 1,514,486 $ 3,305,932 There is $364,502 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, 2022. Other amounts reported will be recognized in pension expense as follows: Year ending September3V: 2022 $ (956,981) 2023 (730,293) 2024 (341,513) 2025 (105,425) 2026 (21,736) $ (2,155,948) 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 StaffTrust is a mandatory condition of employment for all full-time employees, other than those eligible to decline membership. As of September 30, 2020, membership in the StaffTrust 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 14 110 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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(lROP) The Staff Trust implemented a DROP for employees eligible for Rule of 70 Retirement on March 26, 2010. Any employee who is eligible for a Rule of 70 Retirement is eligible to participate in the DROP. Upon election of participation, a member's creditable service, accrued benefits, and compensation calculation are frozen and the DROP payment is based on the member's average final compensation. The member's contribution and the City contribution to the retirement plan for that member ceases as no further service credit is earned. The member does not acquire additional pension credit for the purposes of the pension plan, but may continue City employment for up to a maximum of 48 months. Once the maximum participation has been achieved, the participant must terminate employment. Upon termination of employment, a participant may receive payment from the DROP account in a lump sum distribution; or periodic payments. A participant may elect to rollover the balance to another qualified retirement plan, individual retirement account, an 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, 2021 amounted to $1.15 million and is recorded with the Plan's Investments on the Statement of Fiduciary Net Position. Contributions and Funding Po4ic 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. 111 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 The payroll for employees covered by the Staff Trust for the year ended September 30, 2021 was approximately $418,000. 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, 2021, the average active employee contribution rate was 11.2 percent of annual covered pay, and the City's average contribution rate was 60.83 percent of annual covered payroll. Employer contributions for fiscal year 2021 totaled approximately $254,000. Net Pension Liability The components of the net pension liability of the GESE Staff Trust at September 30, 2021, are as follows: Total pension liability Plan fiduciary net position Net pension liability GESE Staff Trust 5,735,707 (4,814,604) 921.103 Plan fiduciary net position as a percentage of total pension liability 83.94% 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: Actuarial Assumptions Measurement Date September 30, 2020 Inflation 2.50% Projected salary increases 6%, including inflation Investment rate of return 7.45% per year, net of pension plan investment expense and includ inflation. The rates of mortality are according to the following tables: Pre -Retirement Mortality Female: PUB-2010 Headcount Weighted General Below Median Employee Female Table Male: PUB-2010 Headcount Weighted General Below Median Employee Male Table, set back 1 year Projection Scale:MP-2018 Post -Retirement Healthy Mortality Female: PUB-2010 Headcount Weighted General Below Median Healthy Retiree Female Table Male: PUB-2010 Headcount Weighted General Below Median Healthy Retiree Male Table, set back 1 year Projection Scale:MP-2018 Post -Retirement Disabled Mortality Female: PUB-2010 Headcount Weighted General Disabled Retiree Female Table, set forward 3 years 112 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 Male: PUB-2010 Headcount Weighted General Disabled Retiree Male Table, set forward 3 years Projection Scale: MP-2018 Changes of Assumption The discount rate used to measure the total pension liability decreased from 7.60% to 7.45% and the inflation rate decreased from 3.50% to 2.50%. Additionally, the mortality tables were changed from the prior year which used the RP2000 Generational tables. 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 expectec 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, 2021 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 7.45 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. 113 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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, 2021: Balance at 10/01/2020 Changes for the year: Service Cost Interest Differences between expected and actual experience Changes of assumptions Contributions - employer Contributions - member Net investment income Benefit payments, including refunds of member contributions Net Changes Balances at 09/30/2021 GESE Staff Trust Increase (Decrease) Total Pension Liability (a) $ 5,418,674 102,120 400,033 65,909 59,142 (310,171) 317,033 Plan Fiduciary Net Position (b) $ 4,406,611 221,616 44,971 451,577 (310,171) Net Pension Liability (a) - (b) $ 1,012,063 102,120 400,033 65,909 59,142 (221,616) (44,971) (451,577) 407,993 (90,960) $ 5,735,707 $ 4,814,604 $ 921,103 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, 2021: Current Discount 1% Decrease Rate 1% Increase (6.45%) (7.45%) (8.45%) Net Pension Liability $ 1,744,083 $ 921,103 $ 264,403 114 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 Pension Expense and Deferred Outfitan llnflows of Resources Related to Pension For the year ended September 30, 2021, the City recognized pension expense of $102,835. At Septembe 30, 2021 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 $ 69,285 $ - Changes of assumptions 45,452 Net difference between projected and actual earnings on pension plan investments - 94,733 Employer contribution made subsequent to measurement date 294,083 Total $ 408,820 $ 94,733 There is $294,083 reported as deferred outflow of resources related to pension resulting from City's contributions made subsequent to the measurement date. This amount will be recognized as a reduction of the net pension liability in year ending September 30, 2022. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year ended September 2022 $ (13,272) 2023 13,191 2024 34,489 2025 (14,404) $ 20,004 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, 2020, the date of the most recent actuarial report valuation, membership in the EBP consisted of 1 active member. 115 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 As of September 30, 2021, 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 IRC. As ofJanuary 1, 2021, 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. 116 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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, 2021 was $792,760. For the year ended September 30, 2021, EORT had $100,614 in covered payroll for employees. Net Pens ion Liability The components of the net pension liability ofEORT at September 30, 2021, were as follows: EORT $ 10,933,048 (8,307,061) Total pension liability Plan fiduciary net position Net pension liability $ 2,625,987 Plan fiduciary net position as a percentage of total pension liability 75.98% Actuarial Assumptions The total pension liability was determined based on a January 1, 2021 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, 2021 and future periods investments of pension plan investment expense Inflation Rate 2.25% Actuarial cost method Entry age normal Projected salary increases None Mortality rates after commencement of monthly benefits are calculated with P2i®a(A) Retiree Table (general employees, benefits weighted, abowedian income, sexdistinct), with fully - generational mortality improvement projected under Scale- MP18. No mortality is assumed for years prior to the expected commencement date for monthly benefits. Effective January 1, 2020, the mortality assumption was revised to conform to new tables adopted by the Florida Retirement System (FRS). Additionally, a clarifying interpretation of plan provisions, as provided by the City Law Depaitiuent, related to plan members who were in payment status prior to October 2009 and then reelected to office after October 2009 was reflected. Long- Term Rate of Return The long-term expected rate of return on pension plan investments was determined using a building- block method in which best -estimate ranges of expected future real rates of return (expected returns, ne of pension plan investment expense and inflation) are developed for each major asset class. These rang( are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target allocation percentage and by adding expected inflation. Best estimates of 117 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 arithmetic real rates of return by asset class included in the pensions plan's target asset allocation as o- September 30, 2021, 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, 2021: EORT Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (a) (b) (a) - (b) Balances at 10/01/2020 $ 10,951,817 $ 7,356,446 $ 3,595,371 Changes for the year: Service Cost 73,209 - 73,209 Interest 269,170 - 269,17( Differences between expected and actual experience 115,597 - 115,597 Changes of assumptions - - - Contributions - employer - 1,361,670 (1,361,670; Net investment income - 68,090 (68,090) Benefit payments, including refunds of member contributions (476,745) (476,745) - Administrative expenses and Other - (2,400) 2,40( Net Changes (18,769) 950,615 (969,384; Balances at9/30/2021 $ 10,933,048 $ 8,307,061 $ 2,625,98i 118 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following table illustrates the impact of interest rate sensitivity on EORT's net pension liability as of September 30, 2021: Current Discount 1% Decrease Rate 1% Increase (1.5O%) (2.50%) (3.50%) Net Pension Liability $ 4,078,623 $ 2,625,987 $ 1,441,295 Pension Expense and Deferred OutfloanylInflows of Resources Related to Pension For the year ended September 30, 2021, the City recognized pension expense of $416,148. At Septembe 30, 2021 the City reported deferred outflows of resources from the following sources: Net difference between projected and actual earnings on pension plan investments Deferred Outflow of Resources $ 229,368 Deferred outflows of resources will be recognized in pension expense as follows: Year ended September3'b: 2022 $ 106,279 2023 63,774 2024 34,842 2025 24,473 $ 229,368 119 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 Separate stand-alone financial statements are not issued for EORT and are therefore presented below. City of Miami, Florida Statement of Changes in Fiduciary Net Position Fiduciary Fund For the Fiscal Year Ended September 30, 2021 Elected Officers Retirement Trust (EORT) Additions Contributions - Employer $ 792,760 Investment Earnings: Net Increase in Fair Value of Investments 9,720 Total Additions 802,480 Deductions Benefits Payments 491,781 Administrative and Other Expenses 2,400 Total Deductions 494,181 Change in Net Position 308,299 Net Position- Beginning of Year 7,616,054 Net Position- End of Year $ 7,924,353 120 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 City of Miami, Florida Statement of Fiduciary Net Position Fiduciary Fund September 30, 2021 Elected Officers Retirement Trust (EORT) Assets Investments: Money Market Funds 7,940,848 Liabilities Accrued Liability 16,495 Net Position Restricted for Pension Benefits $ 7,924,353 121 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 The following summarizes net pension liability, deferred inflow and outflow of resources at September 30, 2021, for each Pension Plan as previously disclosed in Note 10: Plan FIPO GESE Trust GESE Excess GESE StafTrust EORT Total Net Pension Liability $ 694,193,743 329,601,098 7,407,128 921,103 2,625,987 $1,034,749,059 Deferred Inflow of Resources $ 183,342,641 6,455,747 3,305,932 94,733 $ 193,199,053 Deferred Outflow of Resources $ 166,318,357 97,490,901 1,514,486 408,820 229,368 $ 265,961,932 Pension Expense (Credit) $ 188,039,905 51,386,148 (549,243) 102,835 416,148 $ 239,395,793 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, Depaitinent 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, 2021, 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 $ 389,902,438 8,488,081 741,894 In addition to coverage under the FIPO, the firefighters and police officers are members of two separate defined contribution 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 122 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 does not have any fiduciary responsibility relating to the SBP, consequently plan assets are not recorded in the City's fiduciary funds. The total of such excise taxes received from the State of Florida and remitted to the plans was $9.8 million for the year ended September 30, 2021. 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 in 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. 754,ccounting and Financial Reporting for Post -employment Benefits Other than Pensions (OPEi r 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, 2020, 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. 123 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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 $17.1 million to these OPEB Plans for the fiscal year ended September 30, 2021. 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, 2021 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 2.15% 6.0% 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. The mortality table has been updated to reflect the same mortality tables describes in the FIPO Retireme: Trust Annual Report. The disability rates have also been updated to reflect the same report. Changes of assumptions and other inputs reflect a change in the discount rate from 2.21% at September 30, 2020 to 2.15% at September 30, 2021. 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 2.15% was adopted as of the September 30, 2021 measurement date. 124 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 Changes in the Total OPEB Liability Police Plan Total OPEB Liability Balances at 10/1/2020 $ 550,714,445 Changes forthe year. Service Cost 27,620,413 Interest 12,673,651 Changes of assumptions 7,939,551 Benefit payments, including refunds of member contributions (9,786,494) Net Changes 38,447,121 Balances at 9/30/2021 $ 589,161,566 Sensitivity of theTotaiOPEBLiability 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, 2021: Police Plan Current Discount 1%Decrease Rate 1 %Increase (1.15%) (2.15%) (3.15 %) Total OPEB Liability $ 746,704,224 $ 589,161,566 $ 474,264,308 The following table illustrates the impact of healthcare cost trend rate sensitivity on the total OPEB Liability for fiscal year ended September 30, 2021: 1%Decrease Police Plan Health Care Cost Trend Rates 1%Increase Total OPEB Liability $ 463,780,895 $ 589,161,566 $ 764,780,52( 125 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 OPEB Expense and Deferred Outflows ofResources and Deferred Inflows ofReRalatE6ukto OPEB For the fiscal year ended September 30, 2021, the City recognized OPEB expense of $48,682,013. A September 30, 2021, the City reported deferred inflows of resources related to OPEB in the amount of $24,304,668 for changes in assumptions, and $111,037,397 for differences between expected and actu experience and deferred outflows of resources related to OPEB in the amount of $162,921,831 for changes in assumptions. Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEI will be recognized in OPEB expense as follows: Year ended September3'b: 2022 $ 8,387,94c 2023 8,387,949 2024 8,387,949 2025 11,860,049 2026 (5,262,941) Thereafter (4,181,189) $ 27,579,761 City ofMiami General Employe es — OPEB Plan The City's General Employees total OPEB liability was measured as of September 30, 2021 and determined by an actuarial valuation as of September 30, 2020, rolled -forward to the measurement 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 Discount rate Healthcare cost trend rates 3.5% per annum 2.15% per annum The annual trends are based on the current HCA Consulting study and are applied on a select and ultimate basis. Select range from 5.5%-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 221% at September 30, 2020 to 2.15% at September 30, 2021. 126 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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 2.15 %, which is based on the Bond Buyer 20-Bond GO index. Changes in the Total OPEB Liability General Employees Total OPEB Liability Balances at 10/1/2020 $ 174,058,62 Changes for the year. Service Cost 11,228,830 Interest 4,056,735 Differences between expected and actual experience Changes of assumptions 2,028,674 Benefit payments, including refunds of member contributions (3,449,534) Net Changes 13,864,705 Balances at9/30/2021 $ 187,923,33 Sensitivity of the 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, 2021: General Employees Current Discount 1%Decrease Rate 1 %Increase (1.15%) (2.15 %) (3.15%) Total OPEB Liability $ 226,847,000 $ 187,923,330 $ 157,630,000 The following table illustrates the impact of healthcare cost trend rate sensitivity on the total OPEB Liability for fiscal year ended September 30, 2021: 1%Decrease Health Care Cost Trend Rates 1%Increase Total OPEB Liability $ 154,228,000 $ 187,923,330 $ 232,378,000 127 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 OPEB Expense and Deferred Outflows ofResources and Deferred Inflows ofReRalatEato OPEB For the fiscal year ended September 30, 2021, the City recognized OPEB expense of $15,680,813. A September 30, 2021, the City reported deferred inflows of resources related to OPEB in the amount of $34,494,859 for differences between expected and actual experience, and $11,533,544 for changes i assumptions and deferred outflows of resources related to OPEB in the amount of $53,025,446 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: Ye ar a nding September 3b: 2022 $ 395,24 2023 395,248 2024 395,248 2025 395,248 2026 395,248 Thereafter 5,020,803 $ 6,997,04; City ofMiami Fire — OPEB Plan Effective January 1, 2019, members of the Fire Fighter Union (IAFF) and their retirees formed the Local 587 Health Insurance Trust (Firefighter's Plan). The City's total OPEB liability for its firefighter's plan was measured as of September 30, 2021 and determined by an actuarial valuation as of September 3 2020, rolled -forward to the measurement date using the following assumptions applied to all periods included in the measurement, unless otherwise specified. Actuarial Assumptions Projected salary increases Discount rate Healthcare cost trend rates 4.75% per annum 2.43% per annum The current health care trend rate starts at an initial rate of7.50% 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 2.41% as of September 30, 2020. The current full valuation uses a discount rate of 2.43% as of September 30, 2021. 128 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 Health care trend rates have been reset to an initial rate of 7.50% decreasing by 0.5% annually to a1 ultimate rate of 4.5%. Dental/Vision trend rates have been reset to an initial rate of 3.75% decreasing by 0.25% annually to an ultimate rate of 3.0%. 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. The discount rate used to measure the total OPEB liability was 2.43%, 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 at10/1/2020 $ 143,176,36 Changes for the year: Service Cost 8,325,799 Interest 3,604,440 Changes in assumption (616,017) Differences between expected and actual experience 30,740,330 Benefit payments, including refunds of member contributions (3,903,874) Net Changes 38,150,678 Balances at9/30/2021 $ 181,327,03! Sensitivity of theTotalOPEB 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, 2021: Current Dis count 1%Decrease Rate 1 %Increase (1.43%) (2.43%) (3.43%) Total OPEB Liability $ 216,161,756 $ 181,327,039 $ 153,972,891 129 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 The following table illustrates the impact of healthcare cost trend rate sensitivity on the total OPEB Liability for fiscal year ended September 30, 2021: 1%Decrease Health care cost Trend Rates 1%Increase Total OPEB Liability $ 147,288,267 $ 181,327,039 $ 227,043,62E OPEB Expense and Deferred Outflows ofResources and Deferred Inflows ofReR©latcokto OPEB For the fiscal year ended September 30, 2021, the City recognized OPEB expense of $21,075,767. A September 30, 2021, the City reported deferred outflows of resources related to the Fire OPEB plan in thf amount of $61,820,927 for differences between expected and actual experience and $14,910,142 fo changes in assumptions and deferred inflows of resources related to OPEB in the amount of $554,415 fb changes in assumptions. Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEI will be recognized in OPEB expense as follows: Year ending September311: 2022 2023 2024 2025 2026 Thereafter $ 9,145,52 9,145,528 9,145,528 9,145,528 9,145,528 30,449,014 $ 76,176,65, The following summarizes total OPEB liability, deferred inflow and outflow of resources and OPEB expense at September 30, 2021 for each OPEB plan. Plan Police F ire General Employee Total Total OPEB Liability $ 589,161,566 181,327,039 187,923,330 $ 958,411,935 Deferred Inflow of Resources $ 135,342,065 554,415 46,028,403 $ 181,924,883 Deferred Outflow of Resources $ 162,921,831 76,731,069 53,025,446 $ 292,678,346 OPEB Expense $ 48,682,013 21,075,767 15,680,813 $ 85,438,593 130 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 NOTE 12. — COMMITMENTS AND CONTINGENCIES The City participates in a number of federal and state grant programs. These programs are subject to and 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 audi by the grantor agencies. Such audits could result in requests for reimbursement for expenditures bein; disallowed under the grant terms. Based upon prior experience, the City's management believes an, 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 interlocal 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 ti 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, 2021, 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 $7.0 million, and the total outstanding related debt for the Special Obligation Non -Ad Valorem Revenue Refunding Note, Taxable Series 2020 was approximately $27.5 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 131 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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 Oct .bdih4 balance is recorded as a Claims Payable under Non -Current Liabilities in the Statement of Net Position. The City has not presented any tax abatement applications to City Commission for final approval. Fraternal Order of Police, Walter E. Headley, Jr., Nfiami Lodge No. 20 v. City of Miami,The FOP Miami Lodge 20 (hereinafter the `Police Union") alleges that it has a Collective Bargaining Agreement with the City, effective through September 30, 2010, that the parties exchanged initial proposals for a successor agreement, and that the parties have held several bargaining sessions. The Police Union furtl alleges that during the several bargaining sessions, the City never advised the Police Union that there WE a need to reach settlement on economic items expeditiously, or that the City intended to declare a "financial urgency" and invoke the process set forth in Section 447.4095, Florida Statutes. The Police Union contends that Section 447.4095 may only be invoked to modify the terms of an existing agreement The Police Union further alleges that although the parties continued to bargain for a successor collective bargaining agreement on August 9 and 12, 2010, the parties never discussed wages or pensions, but August 16, 2010, the City advised the Public Employees Relations Commission (`PERC") that it had engaged in negotiations on the impact of the financial urgency, and any action necessitated by the financial urgency, and that a dispute existed. The Police Union then alleges that on August 31, 2010, 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 Courts 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( 132 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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 pension benefits by the Police Union. The remaining unpaid balance due on the settlement at Septembe 30, 2021 is $14.6 million. The balance is recorded as a Claims Payable under Non -Current Liabilities in the Statement of Net Position. International Association of Firefighters, Loca1587 v. City of Miami,The IAF Local 587 (hereinafter "Firefighters Union") alleges that it has a Collective Bargaining Agreement ("CBA") with the City, effective through October 1, 2010, that, in exchange for concessions by the Firefighters Union, the CBA was extended through September 30, 2011, and that the City expressly waived its right not to fund any year of the CBA except in the case of "true fiscal emergency", defined in the CBA as, "the City must demonstrate that there is no other reasonable alternative means of appropriating monies to fund the agreement for that year or years". The Firefighters Union further alleges that less than six (6) months after agreeing to the extension, on April 30, 2010, the City invoked the process under Section 447.4095 Florida Statutes, claiming `Financial urgency," and on August 31, 2010, unilaterally took action to modify wages, insurance and pension benefits. The Firefighters Union asserts that the invocation of Section 447.4095, Florida Statutes was improper and was waived by the City in the CBA. Further, the Firefighters Union alleges that, prior to their enactment, the modifications to the CBA were discussed in a closed door, unnoticed "shade"meeting in violation of Section 447.605, Florida Statutes (an exemption to the Sunshine Law). Finally, the Firefighters Union asserts that the City failed to bargain collectively and in good faith by enacting the changes of August 31, 2010, by not providing the Firefighters Union with notice in advance, and by failing to discuss, bargain over, impact bargain, or complete the process 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 outainadiuy v. City ofMiiami.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 foi $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 at September 30, 2021 is $10. million. The balance is recorded as a Claims Payable under Non -Current Liabilities in the Statement of Net Position. AFSCME Local 1907 v. City of Miami, 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 had 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 was approximately $1.1 million in backpay and was issued on March 5, 2021. 133 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 Public Benefit Agreement Regarding Construction of Fire Station No.49n April 13, 2020 the City entered into a Public Benefit Agreement with 1919 SW 12 Owner LLC (Developer"). The City is the owner of Fire Station No. 4, located at 1105, 1115, 1131, and 11331dS6We2iue. The Developer is the owner of the adjacent property, located at 191 SWS1deet. The Developer has offered to consolidate the City's property and their own property for no compensation, in order to create two separate parcels one of which would be an Air Rights parcel to be owned by Developer, and the other which would be a Fee Parcel to be owned by the City. The Developer has offered to construct a new, state of the art, large and modern Fire Station for the City on the Developer Property and part of the City Property at a cost of $8.0 million at Developer's expense. The Developer also intends to develop a mixed -use tower with first floor retail and a parking garage on the Air Rights parcel. In furtherance of Developer's construction of the project, Developer, at its sole cost and expense, has agreed to provide certain Public Benefits including: (1) the construction of the Fire Station on behalf and for the benefit of the City; (2) the conveyances of the Developer Property to the City; (3) the conveyance of fifty parking spaces to the City; (4) an annual Profit Participation Payment equal to five percent of the available cash, (5) additional cash contribution anticipated to be expended for the purchase of one ladder truck, one engine truck, two fire rescue trucks, and two Ford trucks in connection with the operation of New Fire Station and other Fire Department related expenses, (6) one-time Transfer of Development Rights (TDR) Payment in the amount of $9.0 million for the exclusive and restricted use of promoting and developing affordable housing and park projects within District 3, (7) pay City's Parks and Recreation Impact Fee in the amount of $4.1 million, (8) contribute a Public Benefit Contribution that when added to the TDR Payment Amount and the Park Impact Fee that equals $13.0 million, (9) contribute funds for exclusive and restricted use of promoting arts, culture and entertainment throughout District 3 in an amount equal to $250k, (10) contribute funds in the amount of $200k for streetscape improvements, (11) contribute $3.0 million for improvements to Southside Park and other Public Benefits as outlined in the agreement. Of the cash contributions outlined in the agreement the City received $9.0 million. This amount is recorded in a special revenue fund for the exclusive use of promoting and developing affordable housing. Litigation The City is involved in various lawsuits arising from the ordinary course of operations. Although the outcome of these matters is not presently determinable, it is the opinion of management of the City base, upon consultation with legal counsel, that the outcome of these matters will not have an adverse materia effect on the financial position of the City beyond the amount accrued for its self -insured liability and the amount accrued for estimated probable losses to date. Encumbrances 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. 134 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 The City has outstanding encumbrances in the governmental funds. The following is a summary of these commitments at September 30, 2021. Governmental Funds Major Funds: Special Obligations Bonds Projects $ 1,461,073 Other Capital Projects 48,983,250 Impact Fee 16,593,144 Non Major Governmental Funds 18,608,319 $ NOTE 13. — SUBSEQUENT EVENTS 85,645,786 On December 9, 2021 the City Commission approved the declaration of intent to issue both taxable anc tax-exempt General Obligation Bonds at an initial expected not to exceed total maximum principal amount of $25.0 million for Tranche 2 of the $400 million Miami Forever Bonds to fund Flood Mitigation projects. On January 28, 2022 the City Commission approved a Municipal Payment Plan Agreement with Oracle Credit Corporation to provide payment in a not -to -exceed total aggregate amount of$18.8 million for the acquisition and implementation of Oracle Cloud applications, modules and processes. On February 2, 2022 the City received a $5.2 million donation pursuant to a Gift Agreement with a non- profit organization, Citycoins, Inc. Citycoins offers people a way to support their city and grow a cryptotreasury while earning Bitcoins (BTC) and Stacks (STX) for themselves. Per the agreement, the MiamiCoin is cryptocurrency powered by the STX Protocol. Thirty percent of the STX that miners forward to the STX protocol is sent directly to an electronic wallet that is reserved for the City, which is distributed to the City in US dollars, and the City may use for any valid governmental, municipal and/or public purpose. NOTE 14. — PRONOUNCEMENTS ISSUED, BUT NOT YET ADOPTED 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. 135 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 GASB issued Statement No. 91, Conduit Debt ObligationTe 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 disclosuThr. 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. 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. 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 StatementNo. 87,Leases, as am.e'hl ectequirements 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 N6Tlfr2primary 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. 136 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2021 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 GASBs 87 and 96 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. 137 Required Supplementary Information City of Miami, Florida Schedule of Revenues, Expenditures and Changes In Fund Balance Budget and Actual - General Fund For The Fiscal Year Ended September 30, 2021 (Unaudited) Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Property Taxes $ 424,609,000 $ 424,609,000 $ 410,291,273 $ (14,317,727) Franchise and Other Taxes 117,566,000 117,566,000 116,185,678 (1,380,322) Licenses and Permits 66,587,000 72,187,000 72,250,314 63,314 Fines and Forfeitures 7,644,000 7,644,000 7,982,232 338,232 Intergovernmental Revenues 67,210,000 72,110,000 72,175,296 65,296 Charges for Services 116,799,000 116,934,000 114,560,700 (2,373,300) Investment Earnings (Loss) 4,814,000 4,814,000 808,854 (4,005,146) Other 7,349,000 53,086,000 6,478,363 (46,607,637) Total Revenues 812,578,000 868,950,000 800,732,710 (68,217,290) Expenditures: General Government Mayor 2,309,000 2,355,000 2,034,767 320,233 Commissioners 7,042,000 7,347,000 5,471,039 1,875,961 City Manager 2,781,000 2,857,000 2,674,399 182,601 Agenda Coordination 379,000 388,000 385,759 2,241 City Clerk 2,009,000 2,060,000 2,065,915 (5,915) Neighborhood Enhancement Team 399,000 620,000 599,649 20,351 Civil Service Board 547,000 561,000 552,717 8,283 Independent Auditor General 1,334,000 1,371,000 1,367,676 3,324 Communications 1,702,000 1,746,000 1,710,610 35,390 Human Resources 5,075,000 5,212,000 5,212,566 (566) Dept Human Services 6,744,000 6,878,000 5,957,633 920,367 Innovation and. Technology Department. 13,936,000 15,432,000 15,297,596 134,404 City Attorney 10,366,000 10,652,000 10,473,045 178,955 Management and Budget 3,321,000 3,409,000 3,043,880 365,120 Procurement 2,949,000 3,028,000 2,930,170 97,830 Equal Opportunity & Diversity Programs 537,000 551,000 551,550 (550) Finance 11,000,000 11,256,000 10,927,644 328,356 Capital Improvements and Transportation 4,410,000 4,593,000 4,307,181 285,819 Grants Administration 1,634,000 1,666,000 1,522,876 143,124 Non -Departmental 58,236,000 33,768,033 30,665,544 3,102,489 Risk Management 3,270,000 3,414,000 3,451,796 (37,796) Total General Government 139,980,000 119,164,033 111,204,012 7,960,021 Planning and Development Building Planning Zoning Department Total Planning and Development 17,497,000 5,281,000 4,459,000 27,237,000 19,077,000 5,404,000 4,567,000 19,175,795 5,204,783 4,349,454 29,048,000 28,730,032 (98,795) 199,217 217,546 317,968 Public Works Solid Waste 37,139,000 38,383,000 37,754,791 628,209 General Service Administration 27,735,000 28,172,000 27,506,064 665,936 Public Works and Sustainability 28,473,000 28,938,000 29,795,576 (857,576) Resiliency and Sustainability - - 16,405 (16,405) Total Public Works 93,347,000 95,493,000 95,072,836 420,164 Public Safety Code Compliance 8,716,000 8,941,000 8,650,117 290,883 Fire -Rescue 173,861,000 175,857,000 166,707,803 9,149,197 Police 266,173,000 271,321,000 265,626,231 5,694,769 Total Public Safety 448,750,000 456,119,000 440,984,151 15,134,849 Real Estate and Asset Management Housing and Community Development Parks and Recreation Total other Departmnets Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures 13,617,000 14,683,000 13,833,093 849,907 960,000 1,096,000 1,094,860 1,140 51,406,000 52,516,000 49,486,469 3,029,531 65,983,000 68,295,000 64,414,422 3,880,578 775,297,000 768,119,033 740,405,453 27,713,580 37,281,000 100,830,967 60,327,257 (40,503,710) Other Financing Sources (Uses): Transfers In 4,211,000 4,211,000 5,605,699 1,394,699 Transfers Out (41,664,000) (105,213,967) (105,213,475) 492 Proceeds from Sale of Property 172,000 172,000 227,165 55,165 Total Other Financing Sources (Uses) (37,281,000) (100,830,967) (99,380,611) 1,450,356 Net Change in Fund Balance Fund Balance - Beginning of Year (39,053,354) (39,053,354) 196,566, 459 196, 566,459 Fund Balance - End of Year $ - $ - $ 157,513,105 $ 157,513,105 138 Notes to Required Supplementary Information City of Nfiami, Florida YearEnded September30, 2021 (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, the Emergency Service Special Revenue Fund and the CRA Special Obligation Bonds . Capital Projects Funds are budgeted on a total project basis for which annual budgets are not available. The C budgets in their Special Revenue Fund Operating Budget to pay for their Special Obligation Bonds, therefore, ann budgets are not available. For governmental funds, budgets are prepared on a basis consistent with accour 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 1 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 betwObainfuly 1 September 3`hl o Such report is prepared after consultation with the City Manager. o Public hearings are conducted to obtain taxpayer comments. o Prior to Octobers); 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 year 2021, supplemental appropriatioi totaling $56.4 million increase in the General Fund. The Special Revenue Funds budget was increased in fiscal ) 2021 as follows: $2.95 million was allocated to Police Services, $215,000 to Departmental Improvement Initiative $63,000 to Fire Rescue Services, and a reduction of$35,000 to Human Services. The CRA budgets for transfers in i Special Revenue Fund Operating Budget to pay for their Special Obligation Bonds, therefore the schedule of budge actuals is not reflected in the Required Supplementary Information. During fiscal year 2021, the General Fund h expenditures of approximately $1.3 million attributable to capital expenditures; these expenditures are budgeted at department level and not reported separately on the General Fund Budget to Actual Schedule of Reveni; Expenditures and Changes in Fund Balance presented on previous page. 139 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 Four Years (Unaudited) Total OPEB liability Service cost Interest 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 Covered payroll 2021 $ 27,620,413 12,673,651 7,939,551 (9,786,494) 38,447,121 550,714,445 $ 589,161,566 $ 154,307,948 City's Total OPEB liability as a percentage of covered payroll 382% 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 2.21% to 2.15%. 2020 $ 23,424,653 12,875,493 (150,693,611) 80,970,635 (9,114,857) (42,537,687) 2019 2018 $ 15,532,134 $ 18,643,389 17,584,487 16,174,180 166,632,926 (52,081,436) (11,270,476) (9,692,349) 188,479,071 (26,956,216) 593,252,132 404,773,061 431,729,277 $ 550,714,445 $ 593,252,132 $ 404,773,061 $ 126,533,994 $ 116,997,315 $ 117,554,673 435% 507% 344% 140 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 Four Years (Unaudited) 2021 2020 2019 2018 Total OPEB liability Service cost $ 11,228,830 $ 9,770,177 $ 12,089,305 $ 11,604,247 Interest 4,056,735 5,440,284 8,428,692 7,543,984 Differences between expected and actual experience - (46,944,745) Changes of assumptions 2,028,674 12,599,295 62,941,852 (20,723,542) Plan change - (74,064,500) Benefit payments (3,449,534) (3,116,358) (5,278,831) (4,900,471) Net Change in total OPEB liability 13,864,705 (22,251,347) 4,116,518 (6,475,782) Total OPEB liability - beginning Total OPEB liability - ending 174,058,625 196,309,972 192,193,454 198,669,236 $ 187,923,330 $ 174,058,625 $ 196,309,972 $ 192,193,454 Covered payroll $ 104,021,000 $ 100,990,997 $ 104,744,000 $ 154,355,815 City's Total OPEB liability as a percentage of covered payroll 181% 172% 187% 125% 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 was updated from 2.21% to 2.15%. The mortality assuption was updated from RP-2014 mortality table with generational scale MP-2018 to Pub-2010 mortality table with generational scale MP-2020. The Excise Tax on high cost employer sponsored health plans was repealed in December 2019. 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 Three Years (Unaudited) 2021 2020 2019 Total OPEB liability Service cost $ 8,325,799 $ 5,753,979 $ - Interest 3,604,440 2,121,916 (1,295) Changes of benefit terms - - 74,127,736 Changes in assumptions (616,017) 18,637,678 - Differences between expected and actual experience 30,740,330 42,693,288 Benefit payments (3,903,874) (95,000) (61,941) Net Change in total OPEB liability 38,150,678 69,111,861 74,064,500 Total OPEB liability - beginning Total OPEB liability - ending 143,176,361 74,064,500 $ 181,327,039 $ 143,176,361 $ 74,064,500 Covered payroll $ 59,517,374 $ 56,818,495 $ 54,242,000 City's Total OPEB liability as a percentage of covered payroll 305% 252% 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 Covered Employee Payroll for FY 2021 is based on the Payroll for FY 2020 increased by the wage inflation rate (4.75%) (3) 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. (4) The discount rate changed from 2.41% to 2.43%. Required Supplementary Information City of Miami, Florida Schedule of Changes in the Net Pension Liability and Related Ratios Firefighters and Police (FIPO) Last Eight Fiscal Years (Unaudited) 2021 2020 2019 2018 2017 (Restated) 2016 2015 2014 Total pension liability Service cost $ 33,080,765 $ 33,703,733 $ 30,947,329 $ 27,965,925 $ 26,279,333 $ 21,625,163 $ 19,203,823 $ 17,233,272 Interest 159,732,358 160,096,512 152,192,907 149,244,425 146,548,443 156,265,650 156,479,438 155,338,970 Changes of benefit terns 119,271,883 4,270,406 55,386,337 122,641,436 9,453,429 Differences between expected and actual experience 29,131,987 46,795,554 32,027,954 21,728,074 15,553,948 12,725,721 (16,970,540) (6,638,755) Changes of assumptions 77,759,117 (82,872,814) (5,024,797) 16,618,357 30,651,781 14,895,466 Benefit payments, including refunds of member contributions (168,246,291) (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 250,729,819 (2,423,603) 108,731,523 59,463,495 159,647,784 55,064,845 17,526,289 26,073,211 Total pension liability - beginning 2,227,232,505 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) Total pension liability - ending 2,477,962,324 2,227,232,505 2,229,656,108 2,120,924,585 2,184,102,526 2,222,547,481 2,167,482,636 2,149,956,347 Plan fiduciary net position Contributions -employer 69,982,149 67,564,414 62,694,851 56,999,866 53,264,009 48,672,615 48,616,677 47,654,757 Contributions - member 15,892,461 15,820,796 16,309,563 14,258,763 13,206,378 12,082,805 9,317,231 9,462,569 Net investment income 302,211,711 88,184,264 73,863,324 102,296,007 136,351,212 132,946,827 35,529,492 133,609,444 Benefit payments, mcludmg refunds of member contributions (168,246,291) (164,416,994) (156,798,207) (156,093,286) (151,375,376) (166,203,470) (165,535,327) (139,860,276) Administrative expenses (2,202,023) (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 217,638,007 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 1,566,130,574 1,561,208,562 1,566,682,376 1,551,350,461 1,700,098,500 1,674,671,617 1,748,696,334 1,699,958,806 Restatement - - - - (198,092,739) - - - Plan fiduciary net position - ending 1,783,768,581 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 $ 694,193,743 $ 661,101,931 $ 668,447,546 $ 554,242,209 $ 632,752,065 $ 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 80.09% 70.24% 73.61% 71.73% 69.80% 78.44% 77.89% 82.33% $ 178,532,455 $ 176,635,566 $ 168,059,448 $ 166,670,939 $ 141,497,840 $ 133,083,231 $ 106,278,378 $ 93,705,765 388.83% 374.27% 397.74% 332.54% 447.18% 392.57% 463.70% 428.21% 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. The interest rate changed from 7.34% to 7.00%. The retirement rates were changed for all acrive participants since they are now eligible for the Forward DROP. 143 Total pension liability Service cost Interest Changes of benefit teims 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 City's net position liability 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 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. The discount rate changed from 7.60% to 7.45%. Updated mortality to comply with Florida Statute 112.63(1)(0. Required Supplementary Information City of Miami, Florida Schedule of Changes in the Net Pension Liability and Related Ratios General and Sanitation Employees (GESE) Last Seven Fiscal Years (Unaudited) 2021 $ 18,328,598 77,267,497 13,656,820 17,095,189 (1,593,601) (74,794,162) 49,960,341 1,054,074,679 1,104,035,020 2020 2019 $ 14,701,646 $ 72,575,197 51,240,022 (2,153,338) 78,636 (74,608,564) 61,833,599 992,241,080 1,054,074,679 2018 14,547,783 $ 70,181,377 21,593,105 (75,040,709) 31,281,556 960,959,524 992,241,080 49,923,146 43,526,929 40,879,285 14,457,555 13,094,948 10,847,473 50,886,836 47,381,929 60,276,827 (74,794,162) (74,608,564) (75,040,709) 95,992 (60,585) (287,451) 40,569,367 29,334,657 36,675,425 733,864,555 704,529,898 667,854,473 774,433,922 733,864,555 704,529,898 2017 12,906,853 $ 10,165,542 64,220,387 63,603,300 10,997,320 64,620,251 (73,580,735) 79,164,076 881,795,448 960,959,524 34,355,719 11,081,234 78,645,544 (73,580,735) (352,230) 50,149,532 617,704,941 667,854,473 8,476,546 (421,932) (73,827,066) 7,996,390 873,799,058 881,795,448 32,881,500 9,595,465 60,237,354 (73,827,066) (233,337) 28,653,916 589,051,025 2016 $ 9,234,478 64,212,607 (8,035,778) (73,029,933) (7,618,626) 881,417,684 873,799,058 33,036,318 8,163,643 1,496,395 (73,029,933) (176,693) (30,510,270) 619,561,295 2015 $ 8,678,294 64,248,602 (73,771,095) (844,199) 882,261,883 881,417,684 30,710,096 7,231,235 65,272,884 (73,771,095) (265,995) 29,177,125 590,384,170 617,704,941 589,051,025 619,561,295 $ 329,601,098 $ 320,210,124 $ 287,711,182 $ 293,105,051 $ 264,090,507 $ 284,748,033 $ 261,856,389 70.15% 69.62% 71.00% $ 122,643,648 $ 111,004,019 $ 111,127,482 268.75% 288.47% 258.90% 69.50% 70.05% $ 97,373,080 $ 81,069,095 301.01% 325.76% 67.41% 70.29% $ 71,924,747 $ 66,370,246 395.90% 394.54% 144 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 Seven Fiscal Years (Unaudited) 2021 2020 2019 2018 2017 2016 2015 Total pension liability Service cost $ - $ - $ - $ - $ - $ - $ - Interest 225,257 318,281 387,640 385,137 469,106 392,659 427,362 Differences between expected and actual experience (1,061,015) (930,692) (2,359,812) (1,948,114) (516,393) 3,177,002 763,199 Changes of assumptions 435,484 1,294,576 (571,232) (92,094) 1,459,230 - Benefit payments, including refunds of member contributions (417,755) (477,892) (587,959) (674,572) (680,534) (653,302) (556,805) Net change in total pension liability (818,029) 204,273 (3,131,363) (2,329,643) 731,409 2,916,359 633,756 Total pension liability -beginning 8,225,157 8,020,884 11,152,247 13,481,890 12,750,481 9,834,122 9,200,366 Total pension liability -ending 7,407,128 8,225,157 8,020,884 11,152,247 13,481,890 12,750,481 9,834,122 Plan fiduciary net position Contributions - employer 417,755 477,892 587,959 674,572 680,534 648,302 561,805 Contributions - member Net investment income Benefit payments, including refunds of member contributions (417,755) (477,892) (587,959) (674,572) (680,534) (653,302) (556,805) Administrative expenses - 5,000 (5,000) Net change in plan fiduciary net position - - - Plan fiduciary net position - beginning Plan fiduciary net position - ending City's net position liability $ 7,407,128 S 8,225,157 $ 8,020,884 $ 11.152.247 S 13,481,890 S 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% 0.00% Covered payroll $ 122,643,648 $ 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. The discount rate changed from 2.81 % to 2.21 %. Updated mortality to comply with Florida Statute 112.63(1)(f). 6.04% 7.41% 7.22% 11.45% 16.63% 17.73% 14.82% 145 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 Seven Fiscal Years (Unaudited) 2021 2020 2019 2018 2017 2016 2015 Total pension liability Service cost $ 102,120 $ 82,784 $ 69,391 $ 52,832 $ 45,464 $ 43,416 $ 77,022 Interest 400,033 385,782 369,771 320,492 365,280 353,121 345,755 Changes of benefit terms - - - 460,951 - - Differences between expected and actual experience 65,909 26,620 78,475 10,440 (686,043) 99,869 - Changes of assumptions 59,142 - - 105,798 - - - Benefit payments, including refunds of member contributions (310,171) (305,180) (308,761) (295,460) (332,554) (340,299) (311,388) Net change in total pension liability 317,033 190,006 208,876 655,053 (607,853) 156,107 111,389 Total pension liability - beginning Total pension liability - ending Plan fiduciary net position Contributions - employer Contributions - member Net investment income Benefit payments, including refunds of member contributions Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending City's net position liability Plan fiduciary net position as a percentage of the total pension liability Covered payroll 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. The discount rate changed from 7.60% to 7.45%. Updated mortality to comply with Florida Statute 112.63(1)(f). 5,418,674 5,228,668 5,019,792 4,364,739 4,972,592 4,816,485 4,705,096 5,735,707 5,418,674 5,228,668 5,019,792 4,364,739 4,972,592 4,816,485 221,616 232,280 233,242 247,449 269,054 291,087 291,968 44,971 40,846 32,621 24,542 19,316 19,838 23,377 451,577 176,655 424,371 438,774 364,079 (15,614) 338,281 (310,171) (305,180) (308,761) (295,460) (332,554) (340,299) (311,388) 407,993 144,601 381,473 415,305 319,895 (44,988) 342,238 4,406,611 4,262,010 3,880,536 3,465,231 3,145,336 3,190,324 2,848,086 4,814,604 4,406,611 4,262,009 3,880,536 3,465,231 3,145,336 3,190,324 $ 921,103 $ 1,012,063 $ 966,659 $ 1,139,256 $ 899,508 $ 1,827,256 $ 1,626,161 83.94% 81.32% 81.51% 77.30% 79.39% 63.25% 66.24% $ 387,761 $ 320,720 $ 280,425 $ 225,148 $ 172,459 $ 164,547 $ 298,958 237.54% 315.56% 344.71% 506.00% 521.58% 1110.48% 543.94% 146 Required Supplementary Information City of Miami, Florida Schedule of Changes in the Net Pension Liability and Related Ratios Elected Officers Retirement Trust (EORT) Last Eight Fiscal Years (Unaudited) 2021 2020 2019 2018 2017 2016 2015 2014 Total pension liability Service cost $ 73,209 $ - $ $ - $ $ 88,956 $ 98,028 $ 257,052 Interest 269,170 246,287 311,867 319,429 317,610 316,813 304,126 308,476 Differences between expected and actual experience 115,597 906,733 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 (476,745) (319,771) (318,442) (325,800) (318,754) (263,320) (260,660) (261,135) Net change in total pension liability (18,769) 927,120 1,535,761 (205,647) 52,316 140,228 348,835 53,675 Total pension liability - beginning Total pension liability - ending 10,951,817 10,024,697 8,488,936 8,694,583 8,642,267 8,502,039 8,153,204 8,099,529 10,933,048 10,951,817 10,024,697 8,488,936 8,694,583 8,642,267 8,502,039 8,153,204 Plan fiduciary net position Contributions - employer 1,361,670 0* 366,358 553,471 406,911 860,089 551,222 Net investment income 68,090 132,455 125,407 47,166 54,780 42,971 61,789 (19,893) Benefit payments, including refunds of member contributions (476,745) (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) (2,400) Net change in plan fiduciary net position 950,615 (189,716) 170,923 272,437 140,537 637,340 349,951 (283,428) Plan fiduciary net position - beginning Plan fiduciary net position - ending 7,356,446 7,546,162 7,375,239 7,102,802 6,962,265 6,324,925 5,974,974 6,258,402 $ 8,307,061 $ 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 $ 2,625,987 $ 3,595,371 $ 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 75.98% 67.17% 75.28% 86.88% 81.69% 80.56% 74.39% 73.28% Covered payroll $ 100,614 $ 100,585 $ $ $ $ 100,788 $ 103,194 $ 298,788 Net pension liability as a percentage of covered -employee payroll 2609.96% 3574.46% N/A N/A N/A 1666.87% 2109.73% 729.02% Notes to Schedule: (1) 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. 147 City of Miami, Florida Schedule of Contributions - FIPO September 30, 2021 Last 10 Fiscal Years (Unaudited) FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 Actuarially determined contribution $ 69,982,149 $ 67,564,414 $ 62,694,851 $ 56,999,866 $ 53,264,009 Contributions made in relation to the actuarially determined contribution 69,982,149 67,564,414 62,694,851 56,999,866 53,264,009 Contribution deficiency (excess) $ - $ - $ $ $ Covered payroll $ 178,532,455 $ 176,635,568 $ 168,059,448 $ 166,670,939 $ 141,497,840 Contributions as a percentage of covered payroll 39.20% 38.25% 37.31% 34.20% 37.64% FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 Actuarially determined contribution $ 48,672,615 $ 48,616,677 $ 47,305,679 $ 45,412,248 $ 47,418,316 Contributions made in relation to the actuarially determined contribution 48,672,615 48,616,677 47,305,679 45,412,248 47,418,316 Contribution deficiency (excess) $ - $ - $ $ $ Covered -payroll $ 133,083,231 $ 106,278,378 $ 93,705,765 $ 85,222,842 $ 82,205,838 Contributions as a percentage of covered -payroll 36.57% 45.74% 50.48% 53.29% 57.68% The following actuarial methods and assumptions were used to determine contribution rates for Fiscal Year 2021, 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, 2020 Aggregate Cost Method 20% Phase -In Method: fair market value of assets on the valuation date adjusted for a 5-year phase -in of gains and losses on the fair market value of assets. 7.00% net of investment expenses 3.25% 1.5% for promotions and other increase plus salary merit $2,137,199 Actuarially determined contribution Contributions made in relation to the actuarially determined contribution Contribution deficiency (excess) Covered payroll Contributions as a percentage of covered payroll City of Miami, Florida Schedule of Contributions - GESE September 30, 2021 Last 10 Fiscal Years (Unaudited) FY 2021 FY 2020 $ 54,121,724 54,121,724 $ 129,902,012 41.66% $ 49,923,146 49,923,146 $ 122,643,648 40.71% FY 2019 FY 2018 FY 2017 $ 43,526,929 $ 40,879,285 $ 34,355,719 43,526,929 40,879,285 34,355,719 $ - $ $ 111,004,019 $ 111,127,482 $ 97,373,080 39.21% 36.79% 35.28% 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 2016 FY 2015 $ 32,881,500 $ 33,036,318 32,881,500 33,036,318 $ 81,069,095 40.56% $ 71,924,747 45.93% FY 2014 FY 2013 FY 2012 $ 30,710,096 $ 25,568,193 $ 25,784,849 30,710,096 25,568,193 25,784,849 $ - $ $ 66,370,246 46.27% $ 64,391,195 $ 65,509,421 39.71% The following actuarial methods and assumptions were used to determine contribution rates for Fiscal Year 2021, as reported in the Schedule of Contributions above: Valuation date: Actuarial cost method: Amortization method: Remaining amortization period: Asset valuation method: Actuarial Assumptions: Investment rate of return* Projected salary increases Payroll Growth Includes inflation at* Cost of living adjustments October 1, 2020 Entry Age Normal Level Percent, Closed 3 to 20 years 5-Year Smoothed Market 7.45% 4% to 8.75%, including 3.5% wage inflation 3.0% 2.50% 4% per year, with $54 per year minimum and $400 per year maximum 39.36% 149 Actuarially determined contribution Contributions made in relation to the actuarially determined contribution Contribution deficiency (excess) Covered payroll Contributions as a percentage of covered payroll City of Miami, Florida Schedule of Contributions - GESE Excess Benefit September 30, 2021 Last 10 Fiscal Years (Unaudited) FY 2021 FY 2020 616,889 $ 364,502 $ 252,387 $ 129,902,012 0.28% FY 2019 572,194 $ 631,547 417,755 477,892 $ 154,439 $ 153,655 $ 122,643,648 $ 111,004,019 0.34% 0.43% FY 2018 FY 2017 $ 694,643 $ 850,429 587,959 674,572 $ 106,684 $ 175,857 $ 111,127,482 $ 97,373,080 0.53% 0.69% 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 2016 FY 2015 914,859 $ 680,534 $ 234,325 $ 81,069,095 0.84% FY 2014 947,666 $ 722,999 648,302 561,805 $ 299,364 $ 161,194 $ 71,924,747 $ 66,370,246 0.90% The following actuarial methods and assumptions were used to determine contribution rates for Fiscal Year 2021, 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, 2020 Entry Age Normal Level Dollar, Closed 10 years Not Applicable, the plan has no assets for investment Not Applicable, the plan has no assets for investment 4% to 8.75%, including 3.5% wage inflation 2.50% 0.85% FY 2013 FY 2012 $ 665,659 $ 606,589 523,398 514,908 $ 142,261 $ 91,681 $ 64,391,195 $ 65,509,421 0.81% 0.79% 150 City of Miami, Florida Schedule of Contributions - GESE Staff September 30, 2021 Last 10 Fiscal Years (Unaudited) FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 Actuarially determined contribution $ 254,056 $ 221,616 $ 232,280 $ 233,242 $ 247,449 Contributions made in relation to the actuarially determined contribution 254,056 221,616 232,280 233,242 247,449 Contribution deficiency (excess) $ $ - $ - $ - $ - Covered payroll $ 417,671 $ 387,761 $ 320,720 $ 280,425 $ 225,148 Contributions as a percentage of covered payroll 60.83% 57.15% 72.42% 83.17% 109.91% FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 Actuarially determined contribution $ 269,054 $ 291,087 $ 291,968 $ 219,774 $ 226,793 Contributions made in relation to the actuarially determined contribution 269,054 291,087 291,968 219,774 226,793 Contribution deficiency (excess) $ $ - $ - $ - $ - Covered -payroll $ 172,459 $ 164,547 $ 298,958 $ 354,937 $ 735,056 Contributions as a percentage of covered -payroll 156.01% 176.90% 97.66% 61.92% 30.85% The following actuarial methods and assumptions were used to determine contribution rates for Fiscal Year 2021, 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, 2020 Entry Age Normal Level Dollar, Closed 1 to 17 years 3-Year Smoothed Market 7.45% 6.00%, including 3.5% wage inflation 2.50% 4% per year, with $54 per year minimum and $400 per year maximum 151 City of Miami, Florida Schedule of Contributions - EORT September 30, 2021 Last 10 Fiscal Years (Unaudited) 2021 FY 2020 FY 2019 FY 2018 FY 2017 Actuarially determined contribution $ 792,760 $ 567,727 $ 366,358 $ 463,386 $ 406,911 Contributions made in relation to the actuarially determined contribution 792,760 - 366,358 553,471 406,911 Contribution deficiency (excess) $ $ 567,727 $ $ (90,085) $ Covered payroll $ 100,614 $ 100,585 $ $ - $ - Contributions as a percentage of covered payroll 787.92% 0.00% Not Applicable Not Applicable Not Applicable FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 Actuarially determined contribution $ 469,450 $ 390,314 $ 570,348 $ 488,713 $ 566,252 Contributions made in relation to the actuarially determined contribution 860,089 551,222 1,054,965 432,170 Contribution deficiency (excess) $ (390,639) $ (160,908) $ 570,348 $ (566,252) $ 134,082 Covered -payroll $ 100,788 $ 103,194 $ 298,788 $ 335,952 $ 209,260 Contributions as a percentage of covered -payroll 853.36% 534.16% 0.00% 314.02% 206.52% The following actuarial methods and assumptions were used to determine contribution rates for Fiscal Year 2021, as reported in the Schedule of Contributions above: Valuation date: January 1, 2021 Actuarial cost method: Projected Unit Credit Cost Method Amortization method: Level dollar, closed Remaining amortization period: 5 to 10 years Equivalent single amortization period: 10 years Asset valuation method: Market Value Actuarial Assumptions: Investment rate of return 2.50% Projected salary increases None Payroll Growth None Includes inflation at 2.25% Cost of living adjustments None 152 Year Ended September 30, 2021 2020 2019 2018 2017 2016 2015 City of Miami, Florida Schedule of Investment Returns September 30, 2021 Last Seven Fiscal Years (Unaudited) Annual money -weighted rate of return, net of investment expense Firefighters and Police (FIPO) 19.71% 6.17% 5.39% 7.48% 9.22% 9.70% 1.84% General and Sanitation Employees (GESE) 7.30% 7.10% 9.30% 13.20% 10.60% 0.23% 11.20% (a) General and Sanitation Employees Excess Benefit (GESE Excess Plan) Note to Schedule: (a) The GESE Excess Plan has no assets. This Schedule is presented to illustrate the requirement of GASB 67 and 68. This Schedule will present 10 years as information becomes available. General and Sanitation Employees Staff Trust Plan (GESE Staff Plan) 10.40% 4.20% 11.20% 12.90% 11.80% -0.40% 12.10% Elected Officers Retirement Trust (EORT) 0.89% 1.80% 1.74% 0.68% 0.81% 0.65% 0.93% NON-MAJQ FUNDS SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for special revenues that are legally restricted to expenditures for specified purposes. Community Redevelopment Agency (OMNI CRA) To account for revenues and expenditures to be used for general operations in the defined OMNI Community Redevelopment Area. Community Redevelopment Agency (Midtown CRA) To account for revenues and expenditures to be used for special operations in the defined Midtown Community Redevelopment Area. Community Redevelopment Agency (SEOPW) To account for revenues and expenditures to be used for special operations in the defined Southeast Overtown Park West Community Redevelopment Area. Homeless Program To account for the activities of the City's homeless program. Community Development To account for the proceeds from the Federal government under the U.S. Department of Housing and Urban Development. Housing Choice Vouchers To account for the monies received for administration and assistance to be provided in accordance with Section 8 of the U.S. Housing Act of 1937, as amended under the Choice Housing Voucher Program. Mainstream Vouchers To account for the monies received from the Federal government under the U.S. Department of Housing and Urban Development. 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. 154 NON-MAJQ FUNDS SPECIAL REVENUE r" 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 155 NON-MAJQ FUNDS SPECIAL REVENUE FUNDS General Special Revenue To account for activities that are designated as special revenue which do not fall into one of the previous special revenue categories. Departmental Improvement Initiatives To account for the funds designated for the City of Miami initiatives related to quality of life and technology. Transportation and Transit To account for the operations of the City's transit and transportation projects. Miami Ballpark Parking Facility To account for the operations of the Miami Ballpark Parking Facility. Liberty City Revitalization Trust To account for the revitalization efforts for the redevelopment of the Liberty City Community Revitalization District. Virginia Key Beach Park Trust To account for the activities to preserve, restore, and maintain the Historic Virginia Key Beach Park. Solid Waste Recycling Trust To account for funds received through the recycling program that are utilized to pay for scholarships annually to educational institutions for Solid Waste employees and for the children or legal dependents of Solid Waste employees. Little Haiti Revitalization Trust To account for the revitalization efforts for the redevelopment of the Little Haiti Community Revitalization District Bayfront Park Land Acquisition 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. 156 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. 157 NON-MAJQ FUNDS CAPITAL PROJECTS FUNDS Capital Projects Funds are used to account for the acquisition and construction of major capital facilities. SEOPW Community Redevelopment Agency To account for the acquisition or construction of major capital facilities for community redevelopment in the defined Community Redevelopment Area. 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. 158 City of Miami, Florida Combining Balance Sheet Non -Major Governmental Funds September 30, 2021 Special Revenue Funds Housing Homeless Community Choice Omni CRA Midtown CRA SEOPW CRA Program Development Vouchers Assets Pooled Cash, Cash Equivalents, and Investments $ 22,882,040 $ 9,173,165 $ 47,887,363 $ 94,475 $ 18,053,329 $ 366,181 Restricted Cash, Cash Equivalents, and Investments Receivables (Net of Allowance for Uncollectibles): Loans Receivable - - 1,794 - Accounts Receivable - - 3,600 - Property Tax - - - Due From Other Governments - 285,964 324,803 2,036,629 - Accrued Interest 47,042 81,865 7,244 Other Assets - - 781,100 - - Total Assets $ 22,929,082 $ 9,173,165 $ 49,036,292 $ 419,278 $ 20,102,596 $ 366,181 Liabilities, Fund Balances and Deferred Inflows of Resources Liabilities: Accounts Payable and Accrued Liaibilities $ 188,725 $ $ 901,336 $ 130,136 $ 1,784,854 $ 4,713 Other Liabilities - - 4,224 - Due to Other Funds - - - - Advances From Other Funds - - - - Due to Other Governments - - 2,930,054 Unearned Revenue - - 1,088 - - Deposits - 14,961 85,628 - Total Liabilities 188,725 916,297 131,224 4,804,760 4,713 Deferred Inflows of Resources Unavailable Revenue - Other Total Deferred Inflows of Resources Fund Balances (Deficit): Non -Spendable Fund Balance Non -Spendable Spendable Fund Balance Restricted Committed Assigned Unassigned (deficit) Total Fund Balances (Deficit) Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficit) 22,740,357 9,173,165 48,119,995 587,940 7,941,297 7,356,539 (299,886) 22,740,357 9,173,165 48,119,995 288,054 15,297,836 $ 22,929,082 $ 9,173,165 $ 49,036,292 $ 419,278 $ 20,102,596 361,468 361,468 $ 366,181 159 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 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 - Other Total Deferred Inflows of Resources Fund Balances (Deficit): Non -Spendable Fund Balance Non -Spendable Spendable Fund Balance Restricted Committed Assigned Unassigned (deficit) City of Miami, Florida Combining Balance Sheet Non -Major Governmental Funds September 30, 2021 Special Revenue Funds Mainstream Vouchers Program SHIP $ 17,906 $ 1,353,891 Economic Development Parks & Convention & Planning Recreation Center Services NET Offices Services $ 17,590 $ 22,497,469 $ 20,354 $ 3,366,231 - - - 228 - 482,384 - - 4,714 1,430 $ 17,906 $ 1,837,705 $ 17,590 $ 22,497,469 $ 20,354 $ 3,371,173 - $ 215,550 $ 605 $ 61,463 $ 9,228 $ 16,591 324 - 215,550 605 61,463 9,552 16,591 17,906 1,622,155 16,985 47,898 20,634,386 1,753,722 10,802 1,341,223 - 2,013,359 Total Fund Balances (Deficit) 17,906 1,622,155 16,985 22,436,006 10,802 3,354,582 Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficit) $ 17,906 $ 1,837,705 $ 17,590 $ 22,497,469 $ 20,354 $ 3,371,173 160 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 Other Assets Total Assets City of Miami, Florida Combining Balance Sheet Non -Major Governmental Funds September 30, 2021 Special Revenue Funds Law General Enforcement Public Works City Clerk Fire Rescue Special Police Services Trust Services Services Services Revenues $ 3,701,504 $ 1,179,374 $ 3,549,366 $ 1,581,619 $ 2,115,184 $ 4,486,439 1,713,557 167,721 - - 751,782 - 2,407,504 301,834 5,657 3,387 485 100 - $ 6,172,500 $ 1,182,761 $ 3,717,572 $ 1,581,619 $ 4,522,788 $ 4,788,273 Liabilities, Fund Balances and Deferred Inflows of Resources Liabilities: Accounts Payable and Accrued Liaibilities $ 318,258 $ 23,028 $ 484,552 $ 14,455 $ 616,082 $ 273,398 Other Liabilities - - - - Due to Other Funds 694,385 - 1,116,045 - Advances From Other Funds - - - - Due to Other Governments - - - - Unearned Revenue - 74,361 - - Deposits - 112,413 - - - Total Liabilities 1,012,643 135,441 558,913 14,455 1,732,127 273,398 Deferred Inflows of Resources Unavailable Revenue - Other Total Deferred Inflows of Resources Fund Balances (Deficit): Non -Spendable Fund Balance Non -Spendable Spendable Fund Balance Restricted Committed Assigned Unassigned (deficit) Total Fund Balances (Deficit) Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficit) 651,499 651,499 6,406,550 (1,898,192) 4,508,358 $ 6,172,500 1,047,320 1,047,320 $ 1,182,761 2,402,118 756,541 3,158,659 $ 3,717,572 1,567,164 1,567,164 $ 1,581,619 2,709,955 109,558 80,706 4,393,580 11,737 2,790,661 4,514,875 $ 4,522,788 $ 4,788,273 161 City of Miami, Florida Combining Balance Sheet Non -Major Governmental Funds September 30, 2021 Special Revenue Funds Miami Departmental Ballpark Liberty City Virginia Key Improvement Transportation Parking Revitalization Beach Park Solid Waste Initiatives & Transit Facilities Trust Trust RecyclingTrust Assets Pooled Cash, Cash Equivalents, and Investments $ 16,373,998 $ 12,018,608 $ 1,564,370 $ 607,583 $ 464,258 $ 1,078,965 Restricted Cash, Cash Equivalents, and Investments - - 35,212 - Receivables (Net of Allowance for Uncollectibles): Loans Receivable - - - - Accounts Receivable 73,169 Property Tax - - - - Due From Other Governments 30,735 5,830,271 - - - Accrued Interest - 21,019 - 71 - 1,442 Other Assets - - - - Total Assets $ 16,477,902 $ 17,869,898 $ 1,564,370 $ 607,654 $ 499,470 $ 1,080,407 Liabilities, Fund Balances and Deferred Inflows of Resources Liabilities: Accounts Payable and Accrued Liaibilities $ 836,851 $ 1,994,828 $ 319,093 $ 72,749 $ 3,076 $ 8,400 Other Liabilities - - - - Due to Other Funds - - - - Advances From Other Funds - - - - Due to Other Governments - - - - Unearned Revenue - - - - Deposits - - - - Total Liabilities 836,851 1,994,828 319,093 72,749 3,076 8,400 Deferred Inflows of Resources Unavailable Revenue - Other Total Deferred Inflows of Resources Fund Balances (Deficit): Non -Spendable Fund Balance Non -Spendable Spendable Fund Balance - 2,437,146 - 2,437,146 Restricted 3,355,572 13,438,632 1,245,277 534,905 Committed 11,574,351 - Assigned 711,128 - Unassigned (deficit) - (708) - Total Fund Balances (Deficit) Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficit) 15,641,051 13,437,924 1,245,277 $ 16,477,902 $ 17,869,898 $ 1,564,370 534,905 - 1,000,000 72,007 496,394 496,394 1,072,007 $ 607,654 $ 499,470 $ 1,080,407 162 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 Other Assets Total Assets City of Miami, Florida Combining Balance Sheet Non -Major Governmental Funds September 30, 2021 Special Revenue Funds Debt Service Funds CRA Other Little Haiti Bayfront Park General Special Special Revitalization Land Acquisition Total Special Obligation Obligation Obligation Trust Trust Fund Revenue Bonds Bonds Bonds $ 6,000,123 $ 1,777,000 $ 182,228,385 $ 35,212 6,505,348 2,524,284 9,360,249 1,794 - 1,958,275 72,543 - 416,667 268,317 12,456,620 169,742 781,100 $ 6,000,123 $ 1,777,000 $ 197,631,128 $ 6,846,208 $ 2,524,284 $ 9,776,916 Liabilities, Fund Balances and Deferred Inflows of Resources Liabilities: Accounts Payable and Accrued $ $ Liaibilities $ 525 $ $ 8,278,496 - - $ 36,839 Other Liabilities - 4,224 - - Due to Other Funds - 1,810,430 - - Advances From Other Funds - - - Due to Other Governments - 2,930,054 - - Unearned Revenue - 75,449 - - Deposits - 213,326 - - Total Liabilities 525 13,311,979 - - 36,839 Deferred Inflows of Resources Unavailable Revenue - Other Total Deferred Inflows of Resources Fund Balances (Deficit): Non -Spendable Fund Balance Non -Spendable Spendable Fund Balance Restricted Committed Assigned Unassigned (deficit) Total Fund Balances (Deficit) Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficit) 5,999,598 1,777,000 3,088,645 268,317 3,088,645 268,317 1,000,000 129,285,698 6,577,891 2,524,284 9,740,077 48,873,020 4,270,572 (2,198,786) 5,999,598 1,777,000 181,230,504 6,577,891 2,524,284 9,740,077 $ 6,000,123 $ 1,777,000 $ 197,631,128 $ 6,846,208 $ 2,524,284 $ 9,776,916 163 City of Miami, Florida Combining Balance Sheet Non -Major Governmental Funds September 30, 2021 Debt Service Capital Projects Funds Funds Total Non - Community General Major Total Debt Redevelopment Transportation Obligation Total Capital Governmental Service Agency & Transit Bonds Projects Projects Funds Assets Pooled Cash, Cash Equivalents, and Investments $ - $ - $ - $ $ - $ 182,228,385 Restricted Cash, Cash Equivalents, and Investments 18,389,881 10,835,134 18,702,534 1,531,902 31,069,570 49,494,663 Receivables (Net of Allowance for Uncollectibles): Loans Receivable - - - 1,794 Accounts Receivable 489,210 - - 2,447,485 Property Tax 268,317 - - 268,317 Due From Other Governments - - - 12,456,620 Accrued Interest - - - 15,013 15,013 184,755 Other Assets - - - 781,100 Total Assets $ 19,147,408 $ 10,835,134 $ 18,702,534 $ 1,546,915 $ 31,084,583 $ 247,863,119 Liabilities, Fund Balances and Deferred Inflows of Resources Liabilities: Accounts Payable and Accrued Liaibilities $ 36,839 $ - $ 1,696,786 $ 1,870,705 $ 3,567,491 $ 11,882,826 Other Liabilities - - - 4,224 Due to Other Funds - - - 1,810,430 Advances From Other Funds - - - 19,537,048 19,537,048 19,537,048 Due to Other Governments - - - 2,930,054 Unearned Revenue - - - 75,449 Deposits - - - 213,326 Total Liabilities 36,839 - 1,696,786 21,407,753 23,104,539 36,453,357 Deferred Inflows of Resources Unavailable Revenue - Other Total Deferred Inflows of Resources 268,317 - - 3,356,962 268,317 - - 3,356,962 Fund Balances (Deficit): Non -Spendable Fund Balance Non -Spendable - - - 1,000,000 Spendable Fund Balance Restricted 18,842,252 10,835,134 17,005,748 1,546,915 29,387,797 177,515,747 Committed - - - 48,873,020 Assigned - - - 4,270,572 Unassigned (deficit) - - - (21,407,753) (21,407,753) (23,606,539) Total Fund Balances (Deficit) 18,842,252 10,835,134 17,005,748 (19,860,838) 7,980,044 208,052,800 Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficit) $ 19,147,408 $ 10,835,134 $ 18,702,534 $ 1,546,915 $ 31,084,583 $ 247,863,119 164 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, 2021 Special Revenue Funds Homeless Omni CRA Midtown CRA SEOPW CRA Program Revenues Property Taxes $ 32,305,880 $ 9,845,407 $ 33,280,749 $ Licenses and Permits - - Fines and Forfeitures - - Intergovernmental Revenues - 1,242,457 1,555,639 Charges for Services - - Investment Earnings (Loss) 27,035 7,070 48,827 - Other 393,461 1,116,010 16,421 Total Revenues 32,726,376 9,852,477 35,688,043 1,572,060 Expenditures Current Operating: General Government - 1,494,604 Planning and Development - - Community Development - - Community Redevelopment Areas 18,306,603 4,698,906 16,244,135 Public Works - Public Safety - Public Facilities Parks and Recreation Debt Service: Principal Interest and Other Charges Capital Outlay Total Expenditures 18,306,603 4,698,906 16,244,135 1,494,604 Excess (Deficiency) of Revenues Over (Under) Expenditures 14,419,773 5,153,571 19,443,908 77,456 Other Financing Sources (Uses) Transfers In Transfers Out Total Other Financing Sources (Uses) 98,454 (9,060,478) (98,454) 100,339 (10,149,075) (8,962,024) (98,454) (10,048,736) Net Changes in Fund Balances (Deficit) 5,457,749 5,055,117 9,395,172 77,456 Fund Balances (Deficit) - Beginning 17,282,608 4,118,048 38,724,823 210,598 Fund Balances (Deficit) - Ending $ 22,740,357 $ 9,173,165 $ 48,119,995 $ 288,054 165 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, 2021 Revenues Property Taxes Licenses and Permits Fines and Forfeitures Intergovernmental Revenues Charges for Services Investment Earnings (Loss) Other Total Revenues Special Revenue Funds Mainstream Community Housing Choice Vouchers Development Vouchers Program $ $ 27,794,041 397,319 1,857 SHIP $ $ 2,547,081 91,500 13 - 69,214 482,384 347 331,475 28,193,217 2,616,308 91,500 814,206 Expenditures Current Operating: General Government - - Planning and Development - - Community Development 27,902,102 2,562,477 128,708 718,495 Community Redevelopment Areas Public Works Public Safety Public Facilities Parks and Recreation Debt Service: Principal Interest and Other Charges Capital Outlay 18,767 Total Expenditures 27,920,869 2,562,477 128,708 718,495 Excess (Deficiency) of Revenues Over (Under) Expenditures 272,348 53,831 (37,208) 95,711 Other Financing Sources (Uses) Transfers In 1,000,000 55,114 Transfers Out (55,114) Total Other Financing Sources (Uses) 944,886 55,114 Net Changes in Fund Balances (Deficit) 1,217,234 53,831 17,906 95,711 Fund Balances (Deficit) - Beginning 14,025,488 307,637 55,114 1,526,444 Fund Balances (Deficit) - Ending $ 15,297,836 $ 361,468 $ 17,906 $ 1,622,155 166 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, 2021 Special Revenue Funds Economic Development & Parks & Convention Planning Recreation Center Services NET Offices Services Revenues Property Taxes $ - $ $ $ - Licenses and Permits - 247,802 99,284 Fines and Forfeitures - - Intergovernmental Revenues 3,289 155,061 Charges for Services - 4,407,593 1,533 Investment Earnings (Loss) - 289 - Other - 709,490 13,145 Total Revenues 3,289 5,365,174 269,023 Expenditures Current Operating: General Government - 25,756 - Planning and Development - 363,268 - Community Development Community Redevelopment Areas Public Works - 168,442 - Public Safety - 1,225 - Public Facilities Parks and Recreation - 192,053 Debt Service: Principal Interest and Other Charges Capital Outlay Total Expenditures - 558,691 192,053 Excess (Deficiency) of Revenues Over (Under) Expenditures 3,289 4,806,483 76,970 Other Financing Sources (Uses) Transfers In Transfers Out Total Other Financing Sources (Uses) - (5,680,876) - (5,680,876) Net Changes in Fund Balances (Deficit) 3,289 (874,393) 76,970 Fund Balances (Deficit) - Beginning 13,696 23,310,399 10,802 3,277,612 Fund Balances (Deficit) - Ending $ 16,985 $ 22,436,006 $ 10,802 $ 3,354,582 167 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, 2021 Special Revenue Funds Police Services Law Enforcement Public Works City Clerk Trust Services Services Revenues Property Taxes $ - $ $ $ - Licenses and Permits - 5,856,988 - Fines and Forfeitures - 347,116 - Intergovernmental Revenues 6,165,895 - Charges for Services 297,385 177,222 Investment Earnings (Loss) 801 (628) Other 25,184 Total Revenues 6,489,265 346,488 5,856,988 177,222 Expenditures Current Operating: General Government - 146,871 Planning and Development - - Community Development - - Community Redevelopment Areas Public Works - 4,508,570 - Public Safety 8,618,084 119,656 Public Facilities Parks and Recreation Debt Service: Principal Interest and Other Charges Capital Outlay 154,712 Total Expenditures 8,772,796 119,656 4,508,570 146,871 Excess (Deficiency) of Revenues Over (Under) Expenditures (2,283,531) 226,832 1,348,418 30,351 Other Financing Sources (Uses) Transfers In 3,019,508 Transfers Out (1,000,000) Total Other Financing Sources (Uses) 2,019,508 (1,000,000) (1,000,000) 48,000 48,000 Net Changes in Fund Balances (Deficit) (264,023) 226,832 348,418 78,351 Fund Balances (Deficit) - Beginning 4,772,381 820,488 2,810,241 1,488,813 Fund Balances (Deficit) - Ending $ 4,508,358 $ 1,047,320 $ 3,158,659 $ 1,567,164 168 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, 2021 Revenues Property Taxes Licenses and Permits Fines and Forfeitures Intergovernmental Revenues Charges for Services Investment Earnings (Loss) Other Total Revenues Special Revenue Funds Departmental Fire Rescue General Special Improvement Transportation Services Revenues Initiatives & Transit $ - $ $ 1,495,847 7,070,738 652,113 563,430 4,819 38 969 64,232 379,066 63,387 21,676,822 2,763 225 7,075,595 1,032,148 2,186,896 21,679,810 Expenditures Current Operating: General Government - 4,065,049 161 Planning and Development - 279,932 - Community Development - - Community Redevelopment Areas - - Public Works - 771,839 118,690 11,637,803 Public Safety 5,947,936 Public Facilities Parks and Recreation - 37,556 - Debt Service: Principal Interest and Other Charges Capital Outlay 733,040 1,799 Total Expenditures 6,680,976 771,839 4,503,026 11,637,964 Excess (Deficiency) of Revenues Over (Under) Expenditures 394,619 260,309 (2,316,130) 10,041,846 Other Financing Sources (Uses) Transfers In Transfers Out Total Other Financing Sources (Uses) 730,000 730,000 3,250,000 (1,208,291) (4,012,000) 2,041,709 (4,012,000) Net Changes in Fund Balances (Deficit) 1,124,619 260,309 (274,421) 6,029,846 Fund Balances (Deficit) - Beginning 1,666,042 4,254,566 15,915,472 7,408,078 Fund Balances (Deficit) - Ending $ 2,790,661 $ 4,514,875 $ 15,641,051 $ 13,437,924 169 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, 2021 Special Revenue Funds Liberty City Virginia Key Miami Ballpark Revitalization Beach Park Solid Waste Parking Facilities Trust Trust RecyclingTrust Revenues Property Taxes $ - $ $ $ - Licenses and Permits - Fines and Forfeitures - - Intergovernmental Revenues - 324,000 300,000 - Charges for Services 2,158,354 577,802 - Investment Earnings (Loss) - 482 308 485 Other - 40,600 113,014 - Total Revenues 2,158,354 365,082 991,124 485 Expenditures Current Operating: General Government Planning and Development - - Community Development - - Community Redevelopment Areas - 464,294 - Public Works - 29,401 Public Safety - - Public Facilities 1,833,008 Parks and Recreation - 1,003,739 - Debt Service: Principal Interest and Other Charges Capital Outlay - 147,983 - Total Expenditures 1,833,008 464,294 1,151,722 29,401 Excess (Deficiency) of Revenues Over (Under) Expenditures 325,346 (99,212) (160,598) (28,916) Other Financing Sources (Uses) Transfers In Transfers Out Total Other Financing Sources (Uses) Net Changes in Fund Balances (Deficit) 325,346 (99,212) (160,598) (28,916) Fund Balances (Deficit) - Beginning 919,931 634,117 656,992 1,100,923 Fund Balances (Deficit) - Ending $ 1,245,277 $ 534,905 $ 496,394 $ 1,072,007 170 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, 2021 Special Revenue Funds Debt Service Funds Little Haiti Bayfront Park General Revitalization Land Acquisition Total Special Obligation Trust Trust Fund Revenue Bonds Revenues Property Taxes $ - $ $ 75,432,036 $ 19,365,454 Licenses and Permits - 6,204,074 - Fines and Forfeitures - 1,842,963 - Intergovernmental Revenues - 70,624,450 Charges for Services - 8,022,027 Investment Earnings (Loss) 512 155,400 - Other 6,000,000 9,270,692 158,121 Total Revenues 6,000,512 171,551,642 19,523,575 Expenditures Current Operating: General Government Planning and Development Community Development Community Redevelopment Areas Public Works Public Safety Public Facilities Parks and Recreation Debt Service: Principal Interest and Other Charges Capital Outlay Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures - 5,732,441 - 643,200 - 31,311,782 914 39,714,852 - 17,234,745 - 14,686,901 - 1,833,008 - 1,233,348 - 1,056,301 914 5,999,598 2,501 20,895,000 2,506,753 113,446,578 23,404,254 58,105,064 (3,880,679) Other Financing Sources (Uses) Transfers In - 119,000 8,420,415 Transfers Out - (32,264,288) Total Other Financing Sources (Uses) - 119,000 (23,843,873) Net Changes in Fund Balances (Deficit) 5,999,598 119,000 34,261,191 (3,880,679) Fund Balances (Deficit) - Beginning - 1,658,000 146,969,313 10,458,570 Fund Balances (Deficit) - Ending $ 5,999,598 $ 1,777,000 $ 181,230,504 $ 6,577,891 171 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, 2021 Debt Service Capital Projects Funds Funds CRA Other Special Special Community Obligation Obligation Total Debt Redevelopment Bonds Bonds Service Agency Revenues Property Taxes $ - $ $ 19,365,454 $ - Licenses and Permits - - Fines and Forfeitures - - Intergovernmental Revenues - 5,000,000 5,000,000 Charges for Services - Investment Earnings (Loss) 11,682 57 11,739 31,052 Other 689 158,810 Total Revenues 12,371 5,000,057 24,536,003 31,052 Expenditures Current Operating: General Government - 13,325 15,826 Planning and Development Community Development Community Redevelopment Areas - Public Works Public Safety Public Facilities Parks and Recreation Debt Service: Principal 4,760,000 33,703,896 59,358,896 Interest and Other Charges 2,567,515 12,961,385 18,035,653 Capital Outlay - Total Expenditures 7,327,515 46,678,606 77,410,375 Excess (Deficiency) of Revenues Over (Under) Expenditures (7,315,144) (41,678,549) (52,874,372) Other Financing Sources (Uses) Transfers In 7,327,515 41,089,000 48,416,515 Transfers Out - - Total Other Financing Sources (Uses) 7,327,515 41,089,000 48,416,515 Net Changes in Fund Balances (Deficit) 12,371 (589,549) (4,457,857) (936,185) Fund Balances (Deficit) - Beginning 2,511,913 10,329,626 23,300,109 11,771,319 Fund Balances (Deficit) - Ending $ 2,524,284 $ 9,740,077 $ 18,842,252 $ 10,835,134 89 967,148 967,237 (936,185) 172 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, 2021 Capital Projects Funds Total Non - General Major Transportation &Obligation Bonds Total Capital Governmental Transit Projects Projects Funds Revenues Property Taxes $ - $ $ - $ 94,797,490 Licenses and Permits - - 6,204,074 Fines and Forfeitures - - 1,842,963 Intergovernmental Revenues - - 75,624,450 Charges for Services - - 8,022,027 Investment Earnings (Loss) 8,634 39,686 206,825 Other - 8,386 8,386 9,437,888 Total Revenues 8,634 8,386 48,072 196,135,717 Expenditures Current Operating: General Government 888 888 5,749,155 Planning and Development - - 643,200 Community Development - 2,335,356 2,335,356 33,647,138 Community Redevelopment Areas - 89 39,714,941 Public Works 137,367 137,367 17,372,112 Public Safety - - 14,686,901 Public Facilities - - 1,833,008 Parks and Recreation - 43,475 43,475 1,276,823 Debt Service: Principal - - 59,358,896 Interest and Other Charges - - 18,035,653 Capital Outlay 3,746,089 8,105,751 12,818,988 13,875,289 Total Expenditures 3,884,344 10,484,582 15,336,163 206,193,116 Excess (Deficiency) of Revenues Over (Under) Expenditures (3,875,710) (10,476,196) (15,288,091) (10,057,399) Other Financing Sources (Uses) Transfers In 708,000 708,000 57,544,930 Transfers Out - (2,266,058) (2,266,058) (34,530,346) Total Other Financing Sources (Uses) 708,000 (2,266,058) (1,558,058) 23,014,584 Net Changes in Fund Balances (Deficit) (3,167,710) (12,742,254) (16,846,149) 12,957,185 Fund Balances (Deficit) - Beginning 20,173,458 (7,118,584) 24,826,193 195,095,615 Fund Balances (Deficit) - Ending $ 17,005,748 $ (19,860,838) $ 7,980,044 $ 208,052,800 173 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, 2021 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Property Taxes $ 31,172,641 $ 31,172,641 $ 32,305,880 $ 1,133,239 Intergovernmental Revenues 1,246,906 1,246,906 - (1,246,906) Investment Earnings (Loss) - 27,035 27,035 Other 30,338,982 30,338,982 393,461 (29,945,521) Total Revenues 62,758,529 62,758,529 32,726,376 (30,032,153) Expenditures: Community Redevelopment Areas 59,206,356 59,206,356 18,306,603 40,899,753 Capital Outlay 6,000 6,000 - 6,000 Total Expenditures 59,212,356 59,212,356 18,306,603 40,905,753 Excess (Deficiency) of Revenues Over (Under) Expenditures 3,546,173 3,546,173 14,419,773 10,873,600 Other Financing Sources (Uses): Transfers In 98,467 98,467 98,454 (13) Transfers Out (3,644,640) (3,644,640) (9,060,478) (5,415,838) Total Other Financing Sources (Uses) (3,546,173) (3,546,173) (8,962,024) (5,415,851) Net Change in Fund Balance - 5,457,749 5,457,749 Fund Balance - Beginning of Year - - 17,282,608 17,282,608 Fund Balance - End of Year $ $ - $ 22,740,357 $ 22,740,357 174 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, 2021 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Property Taxes $ 9,846,673 $ 9,846,673 $ 9,845,407 $ (1,266) Investment Earnings (Loss) - 7,070 7,070 Other 5,432,473 5,432,473 - (5,432,473) Total Revenues 15,279,146 15,279,146 9,852,477 (5,426,669) Expenditures: Community Redevelopment Areas 15,279,146 15,279,146 4,698,906 10,580,240 Total Expenditures 15,279,146 15,279,146 4,698,906 10,580,240 Excess (Deficiency) of Revenues Over (Under) Expenditures 5,153,571 5,153,571 Other Financing Sources (Uses): Transfers Out - - (98,454) (98,454) Total Other Financing Sources (Uses) - - (98,454) (98,454) Net Change in Fund Balance 5,055,117 5,055,117 Fund Balance - Beginning of Year - 4,118,048 4,118,048 Fund Balance - End of Year $ $ - $ 9,173,165 $ 9,173,165 175 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, 2021 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Property Taxes $ 33,288,853 $ 33,288,853 $ 33,280,749 $ (8,104) Intergovernmental Revenues 998,666 998,666 1,242,457 243,791 Investment Earnings (Loss) - 48,827 48,827 Other 46,370,693 46,370,693 1,116,010 (45,254,683) Total Revenues 80,658,212 80,658,212 35,688,043 (44,970,169) Expenditures: Community Redevelopment Areas 57,107,191 57,107,191 16,244,135 40,863,056 Capital Outlay 1,969,224 1,969,224 - 1,969,224 Total Expenditures 59,076,415 59,076,415 16,244,135 42,832,280 Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers In Transfers Out Total Other Financing Sources (Uses) 21,581,797 21,581,797 (21,581,797) (21,581,797) (21,581,797) (21,581,797) 19,443,908 (2,137,889) 100,339 (10,149,075) 100,339 11,432,722 (10,048,736) 11,533,061 Net Change in Fund Balance - 9,395,172 9,395,172 Fund Balance - Beginning of Year - - 38,724,823 38,724,823 Fund Balance - End of Year $ $ - $ 48,119,995 $ 48,119,995 176 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, 2021 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 2,610,000 $ 2,610,000 $ 1,555,639 $ (1,054,361) Other 567,000 597,000 16,421 (580,579) Total Revenues 3,177,000 3,207,000 1,572,060 (1,634,940) Expenditures: General Government 3,212,000 3,207,000 1,494,604 1,712,396 Total Expenditures 3,212,000 3,207,000 1,494,604 1,712,396 Excess (Deficiency) of Revenues Over (Under) Expenditures (35,000) - 77,456 77,456 Other Financing Sources (Uses): Transfers In Total Other Financing Sources (Uses) Net Change in Fund Balance 35,000 35,000 77,456 77,456 Fund Balance - Beginning of Year - 210,598 210,598 Fund Balance - End of Year $ $ - $ 288,054 $ 288,054 177 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, 2021 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 30,407,000 $ 30,147,000 $ 27,794,041 $ (2,352,959) Charges for Services - 397,319 397,319 Investment Earnings (Loss) - 1,857 1,857 Other 37,906,000 37,906,000 - (37,906,000) Total Revenues 68,313,000 68,053,000 28,193,217 (39,859,783) Expenditures: Community Development 69,313,000 69,053,000 27,902,102 41,150,898 Capital Outlay - 18,767 (18,767) Total Expenditures 69,313,000 69,053,000 27,920,869 41,132,131 Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers In Transfers Out Total Other Financing Sources (Uses) (1,000,000) (1,000,000) 1,000,000 272,348 1,272,348 1,000,000 1,000,000 1,000,000 1,000,000 (55,114) (55,114) 944,886 (55,114) Net Change in Fund Balance - - 1,217,234 1,217,234 Fund Balance - Beginning of Year - 14,025,488 14,025,488 Fund Balance - End of Year $ $ - $ 15,297,836 $ 15,297,836 178 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, 2021 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 2,352,000 $ 2,612,000 $ 2,547,081 $ (64,919) Investment Earnings (Loss) - - 13 13 Other - 69,214 69,214 Total Revenues 2,352,000 2,612,000 2,616,308 4,308 Expenditures: Community Development 2,352,000 2,612,000 2,562,477 49,523 Total Expenditures 2,352,000 2,612,000 2,562,477 49,523 Excess (Deficiency) of Revenues Over (Under) Expenditures Net Change in Fund Balance 53,831 53,831 53,831 53,831 Fund Balance - Beginning of Year - - 307,637 307,637 Fund Balance - End of Year $ $ - $ 361,468 $ 361,468 179 City of Miami, Florida Schedule of Revenue, Expenditures and Changes In Fund Balance Budget and Actual - Mainstream Vouchers Program For The Fiscal Year Ended September 30, 2021 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 1,006,000 $ 1,006,000 $ 91,500 $ (914,500) Total Revenues 1,006,000 1,006,000 91,500 (914,500) Expenditures: Community Development 1,006,000 1,006,000 128,708 877,292 Total Expenditures 1,006,000 1,006,000 128,708 877,292 Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers In Total Other Financing Sources (Uses) Net Change in Fund Balance (37,208) (37,208) 55,114 55,114 55,114 55,114 17,906 17,906 Fund Balance - Beginning of Year - 55,114 55,114 Fund Balance - End of Year $ $ - $ 17,906 $ 17,906 180 City of Miami, Florida Schedule of Revenue, Expenditures and Changes In Fund Balance Budget and Actual - SHIP For The Fiscal Year Ended September 30, 2021 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 635,000 $ 635,000 $ 482,384 $ (152,616) Investment Earnings (Loss) - 347 347 Other - 331,475 331,475 Total Revenues 635,000 635,000 814,206 179,206 Expenditures: Community Development 635,000 635,000 718,495 (83,495) Total Expenditures 635,000 635,000 718,495 (83,495) Excess (Deficiency) of Revenues Over (Under) Expenditures Net Change in Fund Balance 95,711 95,711 95,711 95,711 Fund Balance - Beginning of Year - - 1,526,444 1,526,444 Fund Balance - End of Year $ $ - $ 1,622,155 $ 1,622,155 181 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, 2021 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ $ - $ 3,289 $ 3,289 Other 13,000 13,000 - (13,000) Total Revenues 13,000 13,000 3,289 (9,711) Expenditures: Public Facilities 13,000 13,000 - 13,000 Total Expenditures 13,000 13,000 - 13,000 Excess (Deficiency) of Revenues Over (Under) Expenditures - - 3,289 Net Change in Fund Balance - - 3,289 Fund Balance - Beginning of Year - 13,696 3,289 3,289 13,696 Fund Balance - End of Year $ $ - $ 16,985 $ 16,985 182 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, 2021 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Licenses and Permits $ 338,000 $ 338,000 $ 247,802 $ (90,198) Charges for Services 1,557,000 1,557,000 4,407,593 2,850,593 Investment Earnings (Loss) - 289 289 Other 22,152,000 24,862,000 709,490 (24,152,510) Total Revenues 24,047,000 26,757,000 5,365,174 (21,391,826) Expenditures: General Government 133,000 156,000 25,756 130,244 Planning and Development 19,294,000 20,670,000 363,268 20,306,732 Public Works - 168,442 (168,442) Public Safety - 1,225 (1,225) Total Expenditures 19,427,000 20,826,000 558,691 20,267,309 Excess (Deficiency) of Revenues Over (Under) Expenditures 4,620,000 5,931,000 4,806,483 (1,124,517) Other Financing Sources (Uses): Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balance (4,620,000) (5,931,000) (5,680,876) 250,124 (4,620,000) (5,931,000) (5,680,876) 250,124 (874,393) (874,393) Fund Balance - Beginning of Year - 23,310,399 23,310,399 Fund Balance - End of Year $ $ - $ 22,436,006 $ 22,436,006 183 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, 2021 Revenues: Other Total Revenues Expenditures: Public Safety Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Net Change in Fund Balance Budgeted Amounts Variance with Original Final Actual Amounts Final Budget $ $ 11,000 $ - $ (11,000) 11,000 - (11,000) 11,000 - 11,000 11,000 - 11,000 Fund Balance - Beginning of Year - 10,802 10,802 Fund Balance - End of Year $ $ - $ 10,802 $ 10,802 184 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, 2021 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Licenses and Permits $ 83,000 $ 83,000 $ 99,284 $ 16,284 Intergovernmental Revenues 400,000 400,000 155,061 (244,939) Charges for Services - 1,533 1,533 Other 548,000 3,278,000 13,145 (3,264,855) Total Revenues 1,031,000 3,761,000 269,023 (3,491,977) Expenditures: Parks and Recreation 1,031,000 3,761,000 192,053 3,568,947 Total Expenditures 1,031,000 3,761,000 192,053 3,568,947 Excess (Deficiency) of Revenues Over (Under) Expenditures Net Change in Fund Balance 76,970 76,970 76,970 76,970 Fund Balance - Beginning of Year - 3,277,612 3,277,612 Fund Balance - End of Year $ $ - $ 3,354,582 $ 3,354,582 185 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, 2021 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 5,718,000 $ 6,877,000 $ 6,165,895 $ (711,105) Charges for Services 150,000 150,000 297,385 147,385 Investment Earnings (Loss) - 801 801 Other 3,480,000 5,559,000 25,184 (5,533,816) Total Revenues 9,348,000 12,586,000 6,489,265 (6,096,735) Expenditures: Public Safety 8,265,000 13,090,000 8,618,084 4,471,916 Capital Outlay 1,153,000 1,516,000 154,712 1,361,288 Total Expenditures 9,418,000 14,606,000 8,772,796 5,833,204 Excess (Deficiency) of Revenues Over (Under) Expenditures (70,000) (2,020,000) (2,283,531) (263,531) Other Financing Sources (Uses): Transfers In 70,000 3,020,000 3,019,508 (492) Transfers Out (1,000,000) (1,000,000) Total Other Financing Sources (Uses) 70,000 2,020,000 2,019,508 (492) Net Change in Fund Balance (264,023) (264,023) Fund Balance - Beginning of Year - 4,772,381 4,772,381 Fund Balance - End of Year $ $ - $ 4,508,358 $ 4,508,358 186 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, 2021 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Fines and Forfeitures $ 150,000 $ 150,000 $ 347,116 $ 197,116 Investment Earnings (Loss) - (628) (628) Other Total Revenues Expenditures: Public Safety Capital Outlay Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Net Change in Fund Balance 672,000 822,000 732,000 90,000 822,000 820,000 970,000 346,488 880,000 119,656 90,000 - 970,000 119,656 226,832 226,832 (820,000) (623, 512) 760,344 90,000 850,344 226,832 226,832 Fund Balance - Beginning of Year - 820,488 820,488 Fund Balance - End of Year $ $ - $ 1,047,320 $ 1,047,320 187 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, 2021 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Licenses and Permits $ 4,300,000 $ 4,300,000 $ 5,856,988 $ 1,556,988 Other 2,535,000 2,810,000 - (2,810,000) Total Revenues 6,835,000 7,110,000 5,856,988 (1,253,012) Expenditures: Public Works 6,765,000 6,040,000 4,508,570 1,531,430 Capital Outlay 70,000 70,000 - 70,000 Total Expenditures 6,835,000 6,110,000 4,508,570 1,601,430 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,000,000 Other Financing Sources (Uses): Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balance 1,348,418 348,418 (1,000,000) (1,000,000) (1,000,000) (1,000,000) 348,418 348,418 Fund Balance - Beginning of Year - 2,810,241 2,810,241 Fund Balance - End of Year $ $ - $ 3,158,659 $ 3,158,659 188 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, 2021 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Charges for Services $ 90,000 $ 90,000 $ 177,222 $ 87,222 Other 1,440,000 1,489,000 - (1,489,000) Total Revenues 1,530,000 1,579,000 177,222 (1,401,778) Expenditures: General Government 1,578,000 1,627,000 146,871 1,480,129 Total Expenditures 1,578,000 1,627,000 146,871 1,480,129 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) 30,351 78,351 48,000 48,000 48,000 48,000 48,000 48,000 78,351 78,351 Fund Balance - Beginning of Year - 1,488,813 1,488,813 Fund Balance - End of Year $ $ - $ 1,567,164 $ 1,567,164 189 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, 2021 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 18,042,000 $ 20,966,000 $ 7,070,738 $ (13,895,262) Charges for Services - 4,819 4,819 Investment Earnings (Loss) - 38 38 Other 12,485,000 2,722,000 - (2,722,000) Total Revenues 30,527,000 23,688,000 7,075,595 (16,612,405) Expenditures: Public Safety 27,404,000 20,552,000 5,947,936 14,604,064 Capital Outlay 3,853,000 3,866,000 733,040 3,132,960 Total Expenditures 31,257,000 24,418,000 6,680,976 17,737,024 Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers In Total Other Financing Sources (Uses) Net Change in Fund Balance (730,000) (730,000) 394,619 1,124,619 730,000 730,000 730,000 730,000 730,000 730,000 1,124,619 1,124,619 Fund Balance - Beginning of Year - 1,666,042 1,666,042 Fund Balance - End of Year $ $ - $ 2,790,661 $ 2,790,661 190 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, 2021 Revenues: Intergovernmental Revenues Investment Earnings (Loss) Other Total Revenues Expenditures: General Government Public Works Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Net Change in Fund Balance Budgeted Amounts Variance with Original Final Actual Amounts Final Budget $ 1,600,000 593,000 2,193,000 $ 1,600,000 $ 652,113 $ (947,887) 969 969 3,735,000 379,066 (3,355,934) 5,335,000 1,032,148 (4,302,852) 44,000 1,844,000 - 1,844,000 2,149,000 3,491,000 2,193,000 5,335,000 771,839 2,719,161 771,839 4,563,161 260,309 260,309 260,309 260,309 Fund Balance - Beginning of Year - - 4,254,566 4,254,566 Fund Balance - End of Year S $ - $ 4,514,875 $ 4,514,875 191 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, 2021 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Fines and Forfeitures $ 600,000 $ 600,000 $ 1,495,847 $ 895,847 Intergovernmental Revenues 460,000 525,000 563,430 38,430 Investment Earnings (Loss) - 64,232 64,232 Other 5,151,000 16,116,000 63,387 (16,052,613) Total Revenues 6,211,000 17,241,000 2,186,896 (15,054,104) Expenditures: General Government 4,211,000 12,996,000 4,065,049 8,930,951 Planning and Development 4,068,000 5,014,000 279,932 4,734,068 Public Works 80,000 38,000 118,690 (80,690) Parks and Recreation 1,333,000 37,556 1,295,444 Capital Outlay 2,000 2,000 1,799 201 Total Expenditures 8,361,000 19,383,000 4,503,026 14,879,974 Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers In Transfers Out Total Other Financing Sources (Uses) (2,150,000) (2,142,000) 3,150,000 (1,000,000) 3,250,000 (1,108,000) 2,150,000 2,142,000 (2,316,130) (174,130) 3,250,000 (1,208,291) (100,291) 2,041,709 (100,291) Net Change in Fund Balance - (274,421) (274,421) Fund Balance - Beginning of Year - 15,915,472 15,915,472 Fund Balance - End of Year $ $ - $ 15,641,051 $ 15,641,051 192 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, 2021 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 17,879,000 $ 17,879,000 $ 21,676,822 $ 3,797,822 Investment Earnings (Loss) - 2,763 2,763 Other 1,000,000 7,409,000 225 (7,408,775) Total Revenues 18,879,000 25,288,000 21,679,810 (3,608,190) Expenditures: General Government - 161 (161) Public Works 14,867,000 21,276,000 11,637,803 9,638,197 Total Expenditures 14,867,000 21,276,000 11,637,964 9,638,036 Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balance 4,012,000 4,012,000 10,041,846 6,029,846 (4,012,000) (4,012,000) (4,012,000) (4,012,000) (4,012,000) (4,012,000) 6,029,846 6,029,846 Fund Balance - Beginning of Year - 7,408,078 7,408,078 Fund Balance - End of Year $ $ - $ 13,437,924 $ 13,437,924 193 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, 2021 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Charges for Services $ 5,695,000 $ 5,695,000 $ 2,158,354 $ (3,536,646) Other 7,400,000 1,226,000 - (1,226,000) Total Revenues 13,095,000 6,921,000 2,158,354 (4,762,646) Expenditures: Public Facilities 8,314,000 2,140,000 1,833,008 306,992 Total Expenditures 8,314,000 2,140,000 1,833,008 306,992 Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balance 4,781,000 4,781,000 (4,781,000) (4,781,000) 325,346 (4,455,654) (4,781,000) - 4,781,000 (4,781,000) - 4,781,000 325,346 325,346 Fund Balance - Beginning of Year - - 919,931 919,931 Fund Balance - End of Year $ $ - $ 1,245,277 $ 1,245,277 194 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, 2021 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 299,950 $ 424,950 $ 324,000 $ (100,950) Investment Earnings (Loss) - - 482 482 Other 509,761 544,761 40,600 (504,161) Total Revenues 809,711 969,711 365,082 (604,629) Expenditures: Community Redevelopment Areas 809,711 969,711 464,294 505,417 Total Expenditures 809,711 969,711 464,294 505,417 Excess (Deficiency) of Revenues Over (Under) Expenditures Net Change in Fund Balance (99,212) (99,212) (99,212) (99,212) Fund Balance - Beginning of Year - - 634,117 634,117 Fund Balance - End of Year S $ - $ 534,905 $ 534,905 195 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, 2021 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 300,000 $ 300,000 $ 300,000 $ - ChargesforServices 1,188,000 1,188,000 577,802 (610,198) Investment Earnings (Loss) - - 308 308 Other 52,000 52,000 113,014 61,014 Total Revenues 1,540,000 1,540,000 991,124 (548,876) Expenditures: Parks and Recreation 1,253,500 1,253,500 1,003,739 249,761 Capital Outlay 286,500 286,500 147,983 138,517 Total Expenditures 1,540,000 1,540,000 1,151,722 388,278 Excess (Deficiency) of Revenues Over (Under) Expenditures Net Change in Fund Balance (160,598) (160,598) (160,598) (160,598) Fund Balance - Beginning of Year - - 656,992 656,992 Fund Balance - End of Year $ $ - $ 496,394 $ 496,394 196 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, 2021 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Investment Earnings (Loss) $ 13,000 $ 13,000 $ 485 $ (12,515) Other 150,000 101,000 - (101,000) Total Revenues 163,000 114,000 485 (113,515) Expenditures: Public Works 163,000 114,000 29,401 84,599 Total Expenditures 163,000 114,000 29,401 84,599 Excess (Deficiency) of Revenues Over (Under) Expenditures Net Change in Fund Balance (28,916) (28,916) (28,916) (28,916) Fund Balance - Beginning of Year - - 1,100,923 1,100,923 Fund Balance - End of Year S $ - $ 1,072,007 $ 1,072,007 197 City of Miami, Florida Schedule of Revenue, Expenditures and Changes In Fund Balance Budget and Actual - Little Haiti Revitalization Trust For The Fiscal Year Ended September 30, 2021 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Investment Earnings (Loss) $ $ - $ 512 $ 512 Other 56,000 6,000,000 5,944,000 Total Revenues - 56,000 6,000,512 5,944,512 Expenditures: Community Redevelopment Areas 45,000 914 44,086 Capital Outlay - 11,000 - 11,000 Total Expenditures - 56,000 914 55,086 Excess (Deficiency) of Revenues Over (Under) Expenditures Net Change in Fund Balance Fund Balance - Beginning of Year - 5,999,598 - 5,999,598 5,999,598 5,999,598 Fund Balance - End of Year $ $ - $ 5,999,598 $ 5,999,598 198 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, 2021 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Other $ 1,658,000 $ 1,777,000 $ - $ (1,777,000) Total Revenues 1,658,000 1,777,000 - (1,777,000) Expenditures: Public Facilities 1,777,000 1,896,000 - 1,896,000 Total Expenditures 1,777,000 1,896,000 - 1,896,000 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 - - 1,658,000 1,658,000 Fund Balance - End of Year $ $ - $ 1,777,000 $ 1,777,000 199 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, 2021 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Property Taxes $ 19,367,000 $ 19,367,000 $ 19,365,454 $ (1,546) Other 4,061,000 4,061,000 158,121 (3,902,879) Total Revenues 23,428,000 23,428,000 19,523,575 (3,904,425) Expenditures: General Government 25,000 25,000 2,501 22,499 Principal 20,895,000 20,895,000 20,895,000 - Interest and Other Charges 2,508,000 2,508,000 2,506,753 1,247 Total Expenditures 23,428,000 23,428,000 23,404,254 23,746 Excess (Deficiency) of Revenues Over (Under) Expenditures (3,880,679) (3,880,679) Net Change in Fund Balance - - (3,880,679) (3,880,679) Fund Balance - Beginning of Year - 10,458,570 10,458,570 Fund Balance - End of Year $ $ - $ 6,577,891 $ 6,577,891 200 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, 2021 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 4,000,000 $ 4,000,000 $ 5,000,000 $ 1,000,000 Investment Earnings (Loss) - 57 57 Other 742,000 3,546,000 - (3,546,000) Total Revenues 4,742,000 7,546,000 5,000,057 (2,545,943) Expenditures: General Government 917,000 917,000 13,325 903,675 Principal 28,557,700 35,891,700 33,703,896 2,187,804 Interest and Other Charges 13,327,300 13,327,300 12,961,385 365,915 Total Expenditures 42,802,000 50,136,000 46,678,606 3,457,394 Excess (Deficiency) of Revenues Over (Under) Expenditures (38,060,000) (42,590,000) (41,678,549) 911,451 Other Financing Sources (Uses): Transfers In Total Other Financing Sources (Uses) Net Change in Fund Balance 38,060,000 42,590,000 41,089,000 (1,501,000) 38,060,000 42,590,000 41,089,000 (1,501,000) (589,549) (589,549) Fund Balance - Beginning of Year - 10,329,626 10,329,626 Fund Balance - End of Year $ $ - $ 9,740,077 $ 9,740,077 201 202 City of Miami, Florida Combining Statement of Fiduciary Net Position Fiduciary Funds September 30, 2021 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 $ 32,489,074 $ 832,645 $ 34,460 $ 82,782 $ $ 33,438,961 Accounts Receivable 19,500,983 3,272,235 26,076 5,000 22,804,294 Capital Assets, Net 2,054,745 1,782,426 - 3,837,171 54,044,802 5,887,306 60,536 87,782 60,080,426 Investments: U.S. Government Obligations 11,515,452 125,935,240 Corporate Bonds 374,512,000 76,216,354 Corporate Stocks 621,660,334 691,518,164 Money Market Funds - 39,419,272 International Equity 389,196,931 - Real Estate 141,041,052 Private Equity 216,712,532 - Total Investments 1,754,638,301 933,089,030 Securities Lending Collateral Total Assets 1,274,851 4,554,788 7,940,848 137,450,692 452,003,205 1,317,733,286 47,360,120 389,196,931 141,041,052 216,712,532 5,829,639 7,940,848 2,701,497,818 59,263,304 - 1,867,946,407 938,976,336 60,536 59,263,304 5,917,421 7,940,848 2,820,841,548 Liabilities Obligations Under Security Lending Transactions 59,263,304 - Accounts Payable 253,732 853,997 Accrued Liability - - Payable for Securities Purchased 24,660,790 4,654,423 Total Liabilities 84,177,826 5,508,420 60,536 60,536 59,263,304 6,030 1,174,295 16,495 16,495 29,315,213 6,030 16,495 89,769,307 Net Position Restricted for Pension Benefits $ 1,783,768,581 $ 933,467,916 $ $ 5,911,391 $ 7,924,353 $ 2,731,072,241 203 City of Miami, Florida Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Fiscal Year Ended September 30, 2021 Additions Contributions: 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 $ 69,982,149 15,892,461 85,874,610 292,499,371 7,849,960 5,940,779 196,497 306,486,607 $ 54,121,724 13,863,911 67,985,635 161,882,629 5,477,951 4,932,766 31,054 172,324,400 $ 364,502 364,502 $ 254,056 $ 792,760 46,617 - 300,673 792,760 1,017,648 9,720 91,031 1,108,679 9,720 153,771 (38,411) 115,360 (4,390,256) 302,211,711 (2,588,090) 169,736,310 2,676,790 103,903 1,108,679 9,720 388,086,321 141,281,882 501,152 26,463,257 2,202,023 170,448,314 217,638,007 1,566,130,574 $ 1,783,768,581 240,398,735 468,405 75,798,787 364,502 2,571,195 2,994,759 81,364,741 159,033,994 774,433,922 $ 933,467,916 1,409,352 802,480 $ 125,515,191 29,802,989 15 5,318,180 455,409,368 13,327,911 10,964,576 227,551 479,929,406 153,771 (38,411) 115,360 (6,978,346) 473,066,420 2,780,693 631,165, 293 312,565 491,781 218,249,517 - 3,072,347 - 26,463,257 103,903 2,400 5,303,085 468,405 312,565 494,181 253,088,206 1,096,787 308,299 378,077,087 4,814,604 7,616,054 2,352,995,154 $ 5,911,391 $ 7,924,353 $ 2,731,072,241 204 205 CITY OF MIAMI, FLORIDA NET POSITION (DEFICIT) BY COMPONENT LAST TEN FISCAL YEARS (ACCURAL BASIS OF ACCOUNTING) 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Primary Government Net Investment in Capital Assets $ 629,956,484 665,680,605 604,198,879 578,092,580 $ 627,800,618 $ 616,752,804 $ 614,080,419 $ 651,485,412 $ 626,017,000 $ 657,452,000 Restricted 426,214,523 401,306,194 372,927,622 358,414,955 297,600,108 273,730,365 237,584,556 86,209,162 93,376,000 90,078,000 Unrestricted (Deficit) (1,965,159,870) (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) Total Primary Government Net Position (Deficit) $ (908,988,863) (786,870,698) (715,474.061) (629.468,552) S (505,726,701) 5 (334.478.985) $ (311.487.886) 5 (209,834,874) $ 392,280,000 5 415,754,000 Notes: (1) The City does not have any business -type activities for financial reporting purposes. CITY OF MIAMI CHANGES IN NET POSITION (DEFICIT) LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Expenses Governmental Activities: General Government $ 181,802,024 $ 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 Planning and Development 32,322,698 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 Community Development 49,845,139 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 Community Redevelpment Areas 41,687,355 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 Public Works 128,492,915 116,448,800 118,662,743 123,517,711 95,595,175 91,985,468 76,035,122 156,036,690 69,241,668 83,062,000 Public Safety 693,848,367 602,699,415 534,660,409 387,651,947 579,366,645 446,865,144 385,120,293 776,125,991 337,347,418 352,869,000 Public Facilities 20,286,822 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 Parks and Recreation 60,233,253 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 Interest on Long -Term Debt 18,690,842 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 Contribution to Port Tunnel Total Primary Government Expenses 1,227,209,415 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 Program Revenues Governmental Activities: Charges for Services General Government 55,236,442 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 Planning and Development 47,719,297 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 Community Development 786,476 369,387 920,736 538,541 1,766,173 5,009,547 824,248 1,555,000 709,000 Community Redevelpment Areas 7,550,071 6,746,428 5,638,853 4,332,416 1,998,138 2,157,456 1,138,695 416,337 62,000 39,000 Public Works 59,921,470 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 Public Safety 33,489,824 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 Public Facilities 30,734,347 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 Parks and Recreation 7,064,103 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 Operating Grants and Contributions 162,278,864 120,557,951 104,297,657 95,524,077 81,114,292 88,478,479 84,631,766 105,483,092 103,176,700 88,608,000 Capital Grants and Contributions 19,238,489 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 Total Primary Government Program Revenue 424,019,383 364,388,814 371,593,610 379,196,046 345,415,918 357,634,315 336,367,368 324,268,392 301,084,767 284,643,000 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 (803,190,032) (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) 485,723,309 448,028,007 404,479,302 369,230,063 336,475,508 298,719,456 269,303,313 241,721,842 232,082,786 223,386,000 19,365,454 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 50,339,450 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 40,024,004 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 65,846,228 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 1,056,799 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 18,716,613 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 13,537,217 (546,835) 9,960,348 (115,656) 681,071,857 660,180,721 614,110,299 573,090,037 528,933,654 482,854,209 451,146,431 430,420,763 400,171,358 393,965,000 (122,118,175) (71,396,628) (86,005,509) 49,331,663 (171,247,716) (22,991 099) (37,652 637) (666,116,653) (23,472,066) (32,089,000) Notes: (1) The City does not have any business -type activities for financial reporting purposes. 207 Fiscal Year 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 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 $ 485,723,309 $ 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 Ad Valorem Taxes Debt Service Franchise Taxes $ 19,365,454 $ 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 Sales and Other Use Communicatiox Taxes Service Taxes $ 50,339,450 $ 49,083,039 51,399,079 49,741,913 49,207,879 47,416,360 47,560,134 46,311,659 44,698,943 26,649,826 Total $ 40,024,004 $ 65,846,228 $ 661,298,445 $ 32,664,564 $ 64,646,386 37,022,921 35,786,997 33,521,269 32,699,735 31,254,199 29,490,981 27,737,964 17,793,928 $ 618,271,209 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 58,045,986 352,762,836 208 CITY OF MIAMI,FLORIDA FUND BALANCES OF GOVERNMENTAL FUNDS LAST EIGHT FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) 2021 2020 2019 2018 2017 2016 2015 2014 Fund Balances: Non -Spendable Fund Balance Non Spendable $ 36,437,475 $ 19,162,252 $ 4,453,645 $ 3,181,065 $ 3,123,531 $ 3,033,309 $ 3,474,396 $ 3,975,000 Spendable Fund Balance Restricted 451,035,628 424,524,689 404,403,534 401,731,979 338,319,610 310,576,099 297,118,841 226,564,000 Committed 115,455,853 108,797,334 110,723,266 107,646,577 121,083,524 133,813,871 92,342,101 110,418,000 Assigned 9,094,214 22,685,175 41,744,018 62,505,392 44,647,057 44,240,127 61,350,740 56,487,000 Unassigned (deficit) 50,444,063 16,745,105 34,129,038 46,904,276 59,618,612 36,487,814 58,533,534 54,180,000 Total Fund Balances $ 662,467,233 $ 591,914,555 $ 595,453,501 $ 621,969,289 $ 566,792,334 $ 528,151,220 $ 512,819,612 $ 451,624,000 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. 209 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 Redevelopment Areas Public Works Public Safety Public Facilities Parks and Recreation Debt Service: Principal Interest and Other Charges Capital Outlay Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers In Transfers Out Proceeds from Sale of Property Payment To Escrow Agent For Refunding Premium from Issuance of Debt Issuance of Debt Discount from Issuance of Debt Total Other Financing Sources (Uses) Net Changes in Fund Balances 2021 2020 2019 2018 2017 $ 505,088,763 $ 471,877,220 $ 432,680,618 $ 397,247,874 $ 363,439,702 116,185,678 113,729,425 115,560,040 113,992,902 111,740,819 78,454,388 79,300,612 80,010,141 73,756,786 73,030,964 9,825,195 9,021,942 9,293,224 15,638,528 17,727,789 230,523,592 168,720,203 159,010,672 156,349,299 131,983,836 122,876,516 108,120,816 134,956,287 133,732,658 131,422,481 1,056,799 12,061,606 17,068,757 9,681,342 4,544,604 14,209,808 24,683,333 17,360,958 20,861,463 25,347,222 16,419,124 15,575,913 22,859,336 30,612,771 15,694,374 1,094,639,863 1,003,091,070 988,800,033 951,873,623 874,931,791 135,160,981 102,450,375 146,416,786 116,727,619 113,445,352 30,683,308 28,881,769 28,842,970 22,526,541 18,478,112 49,418,983 29,552,658 29,278,850 28,331,999 29,059,382 39,714,941 46,923,582 38,207,865 33,972,903 33,155,840 115,167,657 110,631,807 104,267,248 113,745,559 93,845,068 480,671,049 469,416,576 439,120,870 398,331,195 377,635,776 17,100,412 16,090,739 16,271,550 18,098,100 16,095,228 52,026,981 51,400,432 49,672,482 53,971,624 50,122,922 59,358,896 62,764,274 51,836,573 53,599,962 42,848,297 18,035,653 25,977,322 24,567,265 35,299,145 33,376,755 77,495,908 86,245,833 75,065,968 80,821,666 80,312,188 1,074,834,769 1,030,335,367 1,003,548,427 955,426,313 888,374,920 19,805,094 (27,244,297) 139,828,821 (139, 828, 821) 227,165 50,520,419 101,441,753 (101,441,753) 14,449,072 (103,575,001) 112,831,279 (14,748,394) 98,046,289 (98,046,289) 195,133 (120,320,000) 108,357,473 (3,552,690) 118,757,528 (118,757,527) 277,969 (74,105,000) 132,556,675 (13,443,129) 115,984,813 (115,984,813) 787,221 (112,330,000) 163,694,922 (67,900) 50,747,584 $ 70,552,678 $ 23,705,350 (3,538,947) $ (11,767,394) (26,515,788) $ 58,729,645 55,176,955 $ 52,084,243 38,641,114 Debt Service as a Percentage of Non -Capital Expenditures 7.76% 9.40% 8.23% 10.16% 9.43% (continued) 210 CITY OF MIAMI, FLORIDA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) 2016 2015 2014 2013 2012 Revenues Property Taxes $ 324,381,187 $ 294,152,040 $ 266,575,890 $ 258,507,816$ 250,273,000 Franchise and Other Taxes 107,436,744 107,136,243 106,706,981 104,021,141 102,696,000 Licenses and Permits 71,826,609 65,136,838 60,905,490 35,894,264 35,726,000 Fines and Forfeitures 17,022,156 13,606,546 12,633,258 11,822,487 5,538,000 Intergovernmental Revenues 144,464,881 144,172,756 147,318,713 169,377,430 152,387,000 Charges for Services 128,520,198 127,031,324 109,858,728 123,088,110 106,717,000 Investment Earnings (Loss) 3,500,158 4,761,254 4,298,129 (2,653,269) 2,826,000 Impact Fees 25,491,632 20,848,627 21,561,620 9,121,554 4,338,000 Other 14,979,722 15,858,407 11,227,804 7,446,994 14,934,000 Total Revenues 837,623,287 792,704,035 741,086,613 716,626,527 675,435,000 Expenditures General Government Planning and Development Community Development Community Redevelopment Areas Public Works Public Safety Public Facilities Parks and Recreation Debt Service: Principal Interest and Other Charges Capital Outlay Total Expenditures 94,863,916 95,097,965 93,266,684 94,333,429 187,595,000 16,530,501 17,528,545 13,886,927 11,938,108 7,922,000 27,669,432 30,618,655 32,773,187 38,461,763 36,706,000 35,240,353 57,374,849 16,496,169 20,408,076 22,041,000 88,781,332 72,332,848 64,762,823 63,269,335 48,949,000 358,151,070 320,578,664 309,032,876 311,799,509 221,066,000 14,172,514 14,182,077 11,558,522 12,422,038 12,708,000 40,252,541 34,176,174 30,933,658 32,461,502 25,879,000 31,666,421 23,134,356 47,423,659 73,066,874 22,934,000 37,407,853 43,562,774 42,414,727 44,111,501 41,185,000 88,247,094 87,743,237 65,700,078 52,579,857 66,897,000 832,983,027 796,330,144 728,249,310 754,851,992 693,882,000 Excess (Deficiency) of Revenues Over (Under) Expenditures 4,640,260 (3,626,109) Other Financing Sources (Uses) Transfers In Transfers Out Proceeds from Sale of Property Payment To Escrow Agent For Refunding Premium from Issuance of Debt Issuance of Debt Discount from Issuance of Debt Total Other Financing Sources (Uses) Net Changes in Fund Balances 134,391,945 (134,391,945) 441,720 (57,635,000) 67,884,628 113,353,457 (113,353,457) 1,957,890 12,837,303 (38,225,465) (18,447,000) 130,317,671 (130, 317,670) 10,607,538 4,330,862 73,934,380 79, 854,462 114,263,000 (79,854,460) (114,263,000) 304,345 50,028,639 10,691,348 1,957,890 88,872,781 50,332,986 $ 15,331,608 $ (1,668,219) $ 101,710,084 $ 12,107,521$ (18,447,000) Debt Service as a Percentage of Non -Capital Expenditures 9.28% 9.41% 13.56% 16.69% 10.23% 211 CITY OF MIAMI, FLORIDA GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) Ad Valorem Ad Valorem Sales Communication Fiscal Taxes Taxes Franchise and Other Service Year General Purpose Debt Service Taxes Use Taxes Taxes Total 2021 $ 485,723,309 $ 19,365,454 $ 50,339,450 $ 40,024,004 $ 65,846,228 $ 661,298,445 2020 448,028,007 23,849,213 49,083,039 32,664,564 64,646,386 618,271,209 2019 404,479,302 28,201,316 51,399,079 37,022,921 64,160,961 585,263,579 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 58,046,000 378,772,000 212 Fiscal Year Ended September 30, 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 CITY OF MIAMI, FLORIDA NET ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Real Property Residential Property $ 40,749,289,342 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 Commercial Property $ 22,410,214,056 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 Source: Miami -Dade Country Property Appraiser's Office. Personal Property $ 2,675,736,253 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 Net Assessed Value Total Direct Tax Rate $ 65,835,239,651 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 7.9900 7.9900 8.0300 8.0300 8.2900 8.3351 8.3850 8.4310 8.4710 8.5010 Estimated Actual Value $ 81,693,987,652 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 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) 80.59% 79.81% 77.22% 74.24% 74.53% 73.57% 73.51% 78.57% 82.51% 71.94% 213 Fiscal Year 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Tax Roll Year 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 CITY OF MIAMI, FLORIDA PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS City of Miami, Florida General Operations 7.66650 7.56650 7.58650 7.43650 7.64650 7.64650 7.64650 7.61480 7.57100 7.57100 Debt Service 0.3235 0.4235 0.4435 0.5935 0.6435 0.6886 0.7385 0.8162 0.9000 0.9300 Total City 7.9900 7.9900 8.0300 8.0300 8.2900 8.3351 8.3850 8.4310 8.4710 8.5010 Overlapping Rates (1) Miami -Dade County School Miami -Dade Board County 7.1290 5.1449 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 Miami -Dade Miami -Dade Children's County Library Trust System 0.4507 0.2840 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 Sources: City of Miami, Florida Finance Department and Miami -Dade County Property Appraiser's Office. South Florida Water Management District 0.2295 0.2398 0.2519 0.2659 0.2836 0.3045 0.3294 0.3523 0.3676 0.3739 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 0.0380 0.0320 21.29810 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 214 CITY OF MIAMI, FLORIDA PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO 2021 2012 Percent of Percent of Total Total Net City Net Net City Net Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value Ponte Gadea Biscayne LLC 402,200,000 1 0.61% - TWJ 1101 LLC 340,383,630 2 0.52% - Oak Plaza Associates (DEL) LLC 334,752,910 3 0.51% - T C 701 Brickell LLC 222,829,080 4 0.34% 170,400,000 4 0.54% MCPP WFC Maami LLC 214,550,000 5 0.33% - Brickell Holdings LLC 210,350,000 6 0.32% - CP Miami Center LLC 210,000,000 7 0.32% - 1450 Brickell LLC 198,000,000 8 0.30% 167,693,016 8 0.54% Brickell Owner LLC 192,962,160 9 0.29% - Resorts World Miami LLC 186,243,993 10 0.28% - Florida Power and Light - 424,296,740 1 1.35% 200 S Biscayne TIC 1 LLC - 263,300,000 2 0.84% Crescent Miami Center - 170,500,000 3 0.54% Bellsouth Telecommunications - 149,545,210 5 0.48% 1111 Brickell Office LLC - 136,368,168 6 0.44% Trustees of L and B - 122,700,000 7 0.39% RW 244 Biscayne Res LLC - 140,443,750 9 0.45% Met II Office LLC - 137,700,000 10 0.44% Total $ 2,512,271,773 3.82% $ 1,882,946,884 6.01% Net Assessed Value- Citywide $ 65,835,239,651 $ 31,333,834,037 Source: Miami -Dade Property Appraiser 215 Fiscal Year Ended September 30, 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Total Taxes Levied for Fiscal Year $ 499,722,387 478,259,512 449,788,561 407,034,676 390,792,627 353,176,443 315,966,185 281,070,226 262,193,908 252,157,463 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 $ 486,873,568 97.43% $ 18,215,189 446,908,467 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 Total Collections To Date Amount $ 505,088,757 471, 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 Percent of Levy 101.07% 98.67% 94.98% 97.60% 93.00% 91.85% 93.10% 94.85% 98.42% 99.25% 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%. 216 Fiscal Year Ended September 30, 2021 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 $ 94,345,000 115,240,000 135,315,000 154,385,000 174,640,000 189,735,000 205,038,304 217,378,253 228,970,771 239,988,415 251,566,791 Revenue Bonds $ 389,170,207 389,778,811 424,332,312 461,893,102 455,546,326 451,965,126 468,723,244 479,517,651 441,414,431 407,366,796 418,172,682 Loans Payable $ 13,745,199 13,745,199 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) $ 42,307,114 $ 5,689,227 $ 545,256,746 2.31% 1,212 29,641,987 6,545,073 554,951,069 2.35% 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 217 CITY OF MIAMI, FLORIDA RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAS T TEN FIS CAL YEARS FiscalYear General Ended Obligation September30, Bonds 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 $ 94,345,000 115,240,000 135,315,000 154,385,000 174,640,000 189,735,000 205,038,304 217,378,253 228,970,771 239,988,415 Less Amounts Available in Debt Service Fund $ 6,577,891 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 Percentage of Estimated Actual Taxable Value of Per Total 'roperty (: Capita (2) $ 87,767,109 0.133% 195 104,781,430 0.166% 210 125,665,410 0.213% 256 144,959,163 0.272% 301 169,059,184 0.341% 361 186,285,458 0.418% 408 203,227,693 0.509% 462 214,323,380 0.607% 513 225,381,907 0.688% 545 238,036,424 0.961% 657 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 213 for property value data. (2) See the Schedule of Demographic and Economic Statistics on page 222 for population data. 218 CITY OF MIAMI, FLORIDA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT AS OF SEPTEMBER 30, 2021 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 $ 2,350,765,000 885,856 19.00% $ 446,645,350 19.00% 168,313 446,813,663 545,256,747 Total Direct and Overlapping Debt $ 992,070,410 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. 219 Debt Limit Total Net Debt Applicable to Limit Legal Debt Margin Total Net Debt Applicable to the Limit as a Percentage of Debt Limit CITY OF MIAMI, FLORIDA LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 $ 9,642,536,477 $ 9,219,517,382 $ 8,539,422,902 $ 7,700,217,064 $ 7,144,383,601 $ 6,391,518,217 $ 5,688,668,194 $ 4,990,151,631 $ 4,599,936,687 $ 4,533,761,406 87,767,109 104, 781,430 125, 665,410 144,959,163 169,059,184 186,285,458 203,227,694 214,300,991 225,381,907 238,036,415 $ 9,554,769,368 $ 9,114,735,952 $ 8,413,757,492 $ 7,555,257,901 $ 6,975,324,417 $ 6,205,232,759 $ 5,485,440,500 $ 4,775,850,640 $ 4,374,554,780 $ 4,295,724,991 0.91% 1.14% Assessed Value $ 65,835,239,651 Less Homestead Exempt Valuation (1,551,663,141) Total Assessed Value 64,283,576,510 Debt Limit for Bonds (15% of Total Assessed Value) 9,642,536,477 Present Debt Application to Debt Limitation General Obligation Debt 94,345,000 Less Amount Available in Debt Service Fund (6,577,891) Total Net Debt Applicable to Limit 87,767,109 Legal Debt Margin $ 9,554,769,368 1.47% 1.88% 2.37% 2.91% 3.57% 4.29% 4.90% 5.25% 220 Fiscal Year Ended September 30, 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Ad -Valorem Revenues (1) $ 486,873,568 446,908,467 408,965,659 384,282,266 363,439,702 324,381,189 294,152,040 266,575,890 258,507,816 250,273,095 CITY OF MIAMI, FLORIDA PLEDGED REVENUE COVERAGE LAST TEN FISCAL YEARS Debt Service 2x Annual Principal Interest Debt Service Coverage (2) $ 20,895,000 $ 2,506,753 $ 46,803,506 10.40 20,075,000 2,957,634 $ 46,065,269 9.70 19,070,000 3,423,817 44,987,634 9.09 20,255,000 3,941,109 48,392,218 7.94 17,145,000 9,490,770 53,271,540 6.82 14,908,304 9,123,918 48,064,444 6.75 12,339,949 13,741,375 52,162,647 5.64 11,592,499 13,780,696 50,746,390 5.25 11,017,644 13,732,200 49,499,688 5.22 11,578,375 13,673,035 50,502,820 4.96 Note: (1) Ad valorem revenues shall mean all legally available revenues and taxes of the governmental unit in the Funds (defined as the general fund, special revenue funds, the capital project funds, the special assessment funds, and the expandable trust fund(s)) derived from any source whatever other than ad valorem taxation on real and personal property, including appropriated fund balances in the funds and applicable operating transfers (in). Non -Ad Valorem Revenues are required to be two times greater than projected debt service. (2) The Sunshine State Government Financing Loans require that available non -ad valorem revenues be two times the annual projected debt service for all debt other than general obligation debt of the City. 221 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) 2021 449,747 $ $ 40 332,776 5.2% 2020 497,924 22,042,100 44,268 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% Sources: (1) United States Census Bureau (From FY08 to FY12) (2) Bureau of Economic Analysis, U.S. Department Commerce (From FY13 to FY21) (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 FY11to FY19) (6) U.S. Bureau of Labor Statistics (FY20- FY21) * FY 2021 Personal Income Infoi,iiation not available 222 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 Florida International University Total CITY OF MIAMI, FLORIDA PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO 2021 2012 Percentage of Percentage of Total County Total County Employees Rank Employment Employees Rank Employment 36,279 1 2.7% 44,132 1 3.4% 25,502 2 1.9% 26,351 2 2.0% 19,200 3 1.4% 19,400 3 1.5% 17,100 4 1.3% 17,600 4 1.4% 12,818 5 1.0% 13,233 6 1.0% 11,353 6 0.9% 14,865 5 1.1% 11,031 7 0.8% 9,000 9 0.7% 9,797 8 0.7% 10,809 7 0.8% 4,604 9 0.4% 10,800 8 0.8% 3,997 10 0.3% 8,000 10 0.6% 151,681 11.4% 174,190 13.3% Sources: The School Board of Miami -Dade County, Florida Annual Comprehensive Financial Report 2021. 223 CITY OF MIAMI, FLORIDA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Number of Employees: General Government 647 658 638 674 642 608 519 538 540 533 Planning and Development 196 185 179 169 152 138 135 126 124 111 Community Development 35 35 35 35 35 35 38 40 43 43 Public Works 609 591 583 572 573 517 506 452 443 442 Public Safety 2,556 2,692 2,648 2,599 2,580 2,548 2,448 2,338 2,286 2,282 Public Facilities 50 57 59 63 63 54 41 41 42 41 Parks and Recreation 288 299 294 300 301 279 196 192 178 178 Total Number of Employees 4,381 4,517 4,436 4,412 4,346 4,179 3,883 3,727 3,656 3,630 Source: City of Miami, Budget Department 224 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 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 $ 21,168 $ 20,763 $ 20,921 $ 19,401 N/A $ 19,287 $ 19,034 $ 19,239 $ 18,794 $ 24,364 15,319 17,275 20,462 20,360 23,269 23,043 23,709 25,208 2,380 2,687 2,971 3,188 2,456 3,239 3,108 3,715 10,963 9,310 18,748 17,205 17,898 21,732 22,564 27,580 17,882 15,889 15,437 15,285 19,090 14,445 13,970 12,736 91,534 93,107 81,462 82,711 86,865 87,977 86,038 83,697 109,416 108,996 96,899 97,996 105,955 102,422 100,008 96,433 22,482 22,810 22,762 25,779 22,018 26,739 21,191 23,399 22,426 21,411 23,368 24,144 21,592 26,661 22,566 33,877 25,898 28,070 3,837 4,166 26,329 25,155 13,131 15,122 79,544 79,279 92,675 94,401 20,860 20,907 29,686 23,117 Culture and Recreation: Summer Food Program - Meals Served (Lunches) N/A N/A N/A N/A N/A N/A N/A 123,925 119,603 98,129 Summer Food Program - Meals Served (Snacks) N/A N/A N/A N/A N/A N/A N/A 123,425 122,512 106,449 Solid Waste: Refuse Collected (Tons/Day) 381 383 635 709 693 562 693 675 643 586 Recyclables Collected (Tons/Day) 40 48 54 45 56 52 39 48 52 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 225 CITY OF MIAMI, FLORIDA CAPITAL ASSETS STATISTICS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS Function/Program 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 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 15 14 14 14 Solid Waste: Collection Trucks Public Works: Streets (Miles - Paved) Streets (Miles - Unpaved) Transportation: Street Resurfacing (Miles) 160 160 151 170 164 148 141 143 144 144 661.6 661.6 661.6 661.9 661.9 663.2 663.5 663.5 663.8 662.1 0.80 0.82 0.84 0.84 0.84 0.8 0.8 0.8 0.9 1.1 N/A N/A N/A N/A 23.1 24.0 41.0 27.7 23.7 23.7 Culture and Recreation: Parks Acreage 1,345 1,444 1,316 1,316 1,316 1,497 936 897 897 897 Parks 149 147 145 145 145 143 131 127 127 127 Swimming Pools 18 18 15 15 15 15 15 15 15 15 Tennis Courts 51 48 65 65 65 61 61 61 61 61 Community Centers 43 43 43 43 43 34 43 35 34 34 Basketball Courts 96 91 71 71 71 71 71 71 71 71 Water Playgrounds 6 6 6 6 6 5 5 4 4 3 Soccer Fields 24 15 15 15 15 15 15 15 15 13 Football Fields 9 9 9 9 9 9 9 9 9 9 Baseball Fields 28 29 30 30 30 30 30 30 30 30 Open Practice Fields 29 29 29 29 2 2 2 2 2 Cricket Field - - - - 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 227 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 228 In CO 188E nTEo *I ANNUAL COMPREHENSIVE FINANCIAL REPORT Fiscal Year Ended September 30, 2021 www.miamigov.com twitter.com/miamifinance305 City of Miami, Florida Single Audit Report in Accordance with Uniform Guidance and Chapter 10.550, Rules of the Florida Auditor General Fiscal Year Ended September 30, 2021 Table of Contents Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 1-2 Independent Auditor's Report on Compliance for Each Major Federal Program and Major State Project; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance and Schedule of State Financial Assistance Required by Chapter 10.550, Rules of the Florida Auditor General 3-4 Schedule of Expenditures of Federal Awards 5-9 Schedule of State Financial Assistance 10 Notes to Schedule of Expenditures of Federal Awards and Schedule of State Financial Assistance 11 Schedule of Findings and Questioned Costs 12-13 Summary Schedule of Prior Audit Findings 14 RSM RSM US LLP Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards Independent Auditor's Report The Honorable Mayor and Members of the City Commission City of Miami, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Miami, Florida (the City) as of and for the year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated March 31, 2022. Our report includes a reference to other auditors who audited the financial statements of Downtown Development Authority, Bayfront Park Management Trust, Coconut Grove Business Improvement District, Wynwood Business Improvement District, OMNI Redevelopment Agency, Midtown Community Redevelopment Agency, Southeast Overtown Park West Redevelopment Agency, Liberty City Community Revitalization District Trusts, Virginia Key Beach Park Trust, Firefighters' and Police Officers' Retirement trust, and General Employees' and Sanitation Employees' Retirement Trust, as described in our report on the City's financial statements. This report does not include the results of the other auditors' testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. THE POWER OF BEING uh4DERSTOO AUDIT I TAXI CONSULTING 1 RSM US _ _P s the U.S. member firm of R5.L1 Internationala e nL_I etwork of independent audit, tax. and consulting firms. Visit rsmus.cam/ aboutus Far more information regard i_; .r M -5 LLP and RSM I..:c....risr al. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. sitt vs ..4P Miami, Florida March 31, 2022 2 Report on Compliance for Each Major Federal Program and Major State Project; Report on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance and Schedule of State Financial Assistance Required by Chapter 10.550, Rules of the Florida Auditor General Independent Auditor's Report Honorable Mayor and Members of the City Commission City of Miami, Florida RSM RSM US LLP Report on Compliance for Each Major Federal Program and Major State Project We have audited the City of Miami, Florida's (the City) compliance with the types of compliance requirements described in the OMB Compliance Supplement and the requirements described in the Florida Department of Financial Services State Projects Compliance Supplement that could have a direct and material effect on each of the City's major federal programs and major state projects, respectively, for the year ended September 30, 2021. The City's major federal programs and major state projects are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with federal and state statutes, regulations and the terms and conditions of its federal and state awards applicable to its federal programs and state projects. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of City's major federal programs and major state projects based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and Chapter 10.550, Rules of the Florida Auditor General (Chapter 10.550). Those standards, the Uniform Guidance and Chapter 10.550 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major federal program or major state project occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program and major state project. However, our audit does not provide a legal determination of the City's compliance. Opinion on Each Major Federal Program and Major State Project In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs and major state projects for the year ended September 30, 2021. THE POWER OF BEING UNDERSTOOD AUDIT I TAXI CONSULTING 3 42SM US _ _P s the U.S. member firm of R5.L1 Internationala e oLal etwork of independent audit, tax. and consulting firms. Visit rsmus.com/aboutus Far mare information regard i_; .YSM -5 LLP and P. S'.4 I..:c....r i sr al. Report on Internal Control Over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program and major state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and major state project and to test and report on internal control over compliance in accordance with the Uniform Guidance and Chapter 10.550, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program or state project on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state project will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program or state project that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance and Chapter 10.550. Accordingly, this report is not suitable for any other purpose. Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance and Schedule of State Financial Assistance Required by Chapter 10.550, Rules of the Florida Auditor General We have audited the financial statements of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City as of and for the year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the City's basic financial statements. We issued our report thereon dated March 31, 2022, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards and schedule of state financial assistance is presented for purposes of additional analysis as required by the Uniform Guidance and Chapter 10.550, and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards and schedule of state financial assistance are fairly stated in all material respects in relation to the basic financial statements as a whole. s,tt PS ..4P Miami, Florida April 29, 2022 4 City of Miami, Florida Schedule of Expenditures of Federal Awards Fiscal Year Ended September 30, 2021 Federal Grantor/Pass-through Grantor/Program or Cluster Title Assistance Pass -Through Entity Identifying Provided to Federal Listing Number Grant/Contract Number Number Subrecipients Expenditures U.S Department of Agriculture Pass -Through Florida Department of Health Child and Adult Care Food Program 10.558 S-576 16165FL350N2020 $ $ 42,750 Total U.S Department of Agriculture 42,750 U.S Department of Commerce Pass -Through University of Florida Sea Grant Support 11.417 Not applicable NA180AR4170085 7,079 Total U.S Department of Commerce 7,079 U.S Department of Housing and Urban Development CDBG - Entitlement Grants Cluster: Community Development Block Grants/Entitlement Grants 14.218 B-08-MN-120013 7,600 B-16-MC-120013 19,999 19,999 B-17-MC-120013 3,000 28,382 B-18-MC-120013 9,723 101,748 B-19-MC-120013 477,591 954,062 B-20-MC-120013 1,289,325 2,910,458 B-21-MC-120013 - 105 1,799,638 4,022,354 COVID-19 - Community Development Block Grants/Entitlement Grants 14.218 B-20-MC120013-CV 13,131 999,934 Total CDBG - Entitlement Grant Cluster 1,812,769 5,022,288 Emergency Solutions Grant Program 14.231 E-19-MC-120002 1,673 1,744 E-20-MC-120002 537,546 2,189,488 HOME Investment Partnership Program 14.239 M-15-MC-120011 M-17-MC-120011 M-18-MC-120011 M-19-MC-120011 M-20-MC-120011 (Continued) 5 539,219 2,191,232 87,100 2,086,002 512,833 243,468 629,026 3,558,429 City of Miami, Florida Schedule of Expenditures of Federal Awards (Continued) Fiscal Year Ended September 30, 2021 Federal Grantor/Pass-through Grantor/Program or Cluster Title Assistance Pass -Through Entity Identifying Provided to Federal Listing Number Contract Number Number Subrecipients Expenditures U.S Department of Housing and Urban Development (continued) Housing Opportunities for Persons with AIDS 14.241 F-LH-14-F005 4,605 F-LH-15-F005 540 12,948 F-LH-17-F005 240,655 F-LH-18-F005 3,795 952,453 F-LH-19-F005 25,844 5,250,867 F-LH-20-F005 4,319 5,359,039 34,498 11,820,567 COVID-19 - Housing Opportunities for Persons with AIDS Pass -Through Florida Department of Health Housing Opportunities for Persons with AIDS Total Housing Opportunities for Persons with AIDS Pass -Through Miami Dade County Homeless Trust Continuum of Care Program Section 8 Project - Based Cluster: Lower Income Housing Assistance Program -Section 8 Moderate Rehabilitation 14.241 14.241 F-LH-20-F005-CV FLH19F999 63,058 795,287 CODRX 912,825 97,556 13,528,679 14.267 FLO211L4D001912 596000573 672,769 14.856 FL145M R0001 1,898,058 FL145MR0002 562,224 Total Section 8 Project - Based Cluster 2,460,282 Housing Voucher Cluster: Section 8 Housing Choice Vouchers Mainstream Vouchers Total Housing Voucher Cluster 14.871 FL145 2,548,185 14.879 FL145 128,708 2,676,893 Total U.S Department of Housing and Urban Development 2,449,544 30,110,572 U.S Department of Justice COVID-19 - Coronavirus Emergency Supplemental Funding Program 16.034 2020-VD-BX-1259 83,971 Pass -Through Office of the Florida Attorney General Crime Victim Assistance 16.575 VOCA-2020-City of Miami Depa-00640 596000375 420,568 Public Safety Partnership and Community Policing Grants 16.710 2017ULWX0033 649,558 (Continued) 6 City of Miami, Florida Schedule of Expenditures of Federal Awards (Continued) Fiscal Year Ended September 30, 2021 Federal Grantor/Pass-through Grantor/Program or Cluster Title Assistance Pass -Through Entity Identifying Provided to Federal Listing Number Contract Number Number Subrecipients Expenditures U.S Department of Justice (continued) Edward Byrne Memorial Justice Assistance Grant Program 16.738 Pass -Through Florida Department of Law Enforcement Edward Byrne Memorial Justice Assistance Grant Program 16.738 2018-DJ-BX-0831 2019-DJ-BX-0396 2019-WY-BX-005 2020-DG-BX-0011 2017- M U-BX-0187 2018-MU-BX-0292 2019-MU-BX-0036 2017-MU-BX-0187 2020-J AGC- DA D E-9-Y5-163 2021-JAGC-DADE-1-5R-077 242,837 18,464 3,000 135,826 261,068 19,918 261,301 419,812 28,231 21,820 19,337 69,388 Total Edward Byrne Memorial Justice Assistance Grant Program 261,301 489,200 DNA Backlog Reduction Program 16.741 2017-AK-BX-0013 75,584 Criminal and Juvenile Justice and Mental Health Collaboration Program 16.745 2018-MO-BX-0014 101,651 101,651 Body Worn Camera Policy and Implementation 16.835 2020-BC-BX-0024 2,107 Comprehensive Opioid, Stimulant, and Substance Abuse Program 16.838 2018-AR-BX-K109 51,195 71,744 Equitable Sharing Program 16.922 Not Applicable 119,686 Total U.S Department of Justice 414,147 2,014,069 U.S. Department of Transportation Highway Planning and Construction Cluster: Pass -Through Florida Department of Transportation Highway Planning and Construction Cluster 20.205 G0R73 Not Available G1 G02 Not Available 185,912 622,256 Total Highway Planning and Construction Cluster 808,168 Highway Safety Cluster: Pass -Through Florida Department of Transportation State and Community Highway Safety 20.600 G1S22 69A37519300004020FLO 184,497 G1S29 69A37519300004020FLO 75,043 Total Highway Safety Cluster 259,540 Total U.S Department of Transportation 1,067,708 (Continued) 7 City of Miami, Florida Schedule of Expenditures of Federal Awards (Continued) Fiscal Year Ended September 30, 2021 Federal Grantor/Pass-through Grantor/Program or Cluster Title Assistance Pass -Through Entity Identifying Provided to Federal Listing Number Contract Number Number Subrecipients Expenditures U.S. Department of the Treasury Pass -Through Florida Housing Finance Corporation COVID-19 - Coronavirus Relief Fund 21.019 SLT0050 Not Available 767,053 Pass -Through Miami Dade County Department of the Treasury COVID-19 - Coronavirus Relief Fund 21.019 Not Applicable Not Available 11,066,166 Total COVID-19 - Coronavirus Relief Fund 11,833,219 COVID-19 - Emergency Rental Assistance Program 21.023 Not Applicable 12,727,183 Total U.S Department of the Treasury 24,560,402 U.S Department of Health and Human Services COVID 19 - CARES Act Provider Relief Fund 93.498 Not Applicable 168,195 Pass -Through Florida Agency for Persons with Disabilities Medicaid Cluster: Medical Assistance Program Cluster 93.778 Not Applicable Not Available 76,015 Total U.S Department of Health and Human Services 244,210 Executive Office of the President of the United States Pass -Through South Florida HIDTA/Monroe County Sheriffs High Intensity Drug Trafficking Areas Program 95.001 G19MI0001A G19MI0001A 101,703 G20 M 10001 A G20 M 10001 A 59,650 Total Executive Office of the President 161,353 U.S Department of Homeland Security National Urban Search and Rescue (US&R) Response System 97.025 EMW-95-k-4718 3,677,944 EMW-2017-CA-00048 24,216 E M W2018CA00008 125,456 EMW-2019-CA-00072 285,321 E M W-2020-CA-00056 667,344 4,780,281 (Continued) 8 City of Miami, Florida Schedule of Expenditures of Federal Awards (Continued) Fiscal Year Ended September 30, 2021 Federal Grantor/Pass-through Grantor/Program or Cluster Title Assistance Pass -Through Entity Identifying Provided to Federal Listing Number Contract Number Number Subrecipients Expenditures U.S Department of Homeland Security (continued) Pass -Through State of Florida Division of Emergency Management Disaster Grants - Public Assistance (Presidentially Declared Disasters) Assistance to Firefighters Grant Pass -Through State of Florida Division of Emergency Management Agency Building Resilient Infrastructure and Communities Pass Through State of Florida Division of Emergency Management Homeland Security Grant Program 97.036 Z0032 4337DRFLP0000001 9,044,922 Z2489 4337DRFLP0000001 125,366 Z2070 4337DRFLP0000001 32, 894, 620 42,064,908 97.044 EMW-2020-FG-00527 1,719,793 97.047 18-DM-AX-11-23-02-365 EMA-2017-PC-0001 860 97.067 19-DS-04-11-23-02-319 EMW-2018-SS-00064 1,749,642 2,181,269 R0075 EMW-2019-SS-00049 1,282,601 1,857,394 R0232 EMW-2020-SS-00035-S01 20,022 432,748 R0280 EMW-2020-SS-00035-S01 - 51,535 3,052,265 4,522,946 Securing the Cities Program 97.106 20CWDSTC00007-01-00 2,536 Preparing for Emerging Threats and Hazards 97.133 EMW-2016-GR-00097-S01 22,749 Total U.S Department of Homeland Security 3,052,265 53,114,073 Total Expenditures for Federal Awards $ 5,915,956 $ 111,322,216 See notes to the schedule of expenditures of federal awards. 9 City of Miami, Florida Schedule of State Financial Assistance Fiscal Year Ended September 30, 2021 State State State Grantor/Pass-through Grantor/Program or Cluster Title CSFA Number Grant/Contract Number Expenditures Department of Environmental Protection Statewide Surface Water Restoration and Wastewater Projects 37.039 LPA0024 $ 28,431 Total Department of Environmental Protection 28,431 Florida Housing Finance Corporation State Housing Initiatives Partnership (SHIP) Program 40.901 SHIP FY2018-2019 325,578 SHIP FY2019-2020 391,164 Total Florida Housing Finance Corporation 716,742 Department of Financial Services Fire Decontamination Equipment Grant Project Total Department of Financial Services 43.013 FM588 18,750 Department of State and Secretary of State Cultural Facilities Grant Program 45.014 General Program Support (Cultural and Museum Grants) Total Florida Department of State Department of Transportation Public Transit Service Development Program Transit Corridor Development Program Local Transportation Project 18,750 20.9.200.574 78,250 45.061 CA2 E 142 7,591 85,841 55.012 446651-1-84-01 51,200 55.013 436695-1-94-01 294,499 55.039 G1R84 14,973 Total Department of Transportation 360,672 Department of Health Emergency Medical Services (EMS) Matching Awards 64.003 M8052 172,268 Pass -Through Miami -Dade County, Florida County Grant Awards Total Department of Health Fish and Wildlife Conservation Commission Florida Boating Improvement Program Total Fish and Wildlife Conservation Commission Total Expenditures of State Financial Assistance See notes to schedule of state financial assistance. 64.005 EMS County Grant #C0013 3,979 176,247 77.006 19024 2,450 2,450 $ 1,389,133 10 City of Miami, Florida Notes to Schedule of Expenditures of Federal Awards and Schedule of State Financial Assistance Fiscal Year Ended September 30, 2021 Note 1. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards and Schedule of State Financial Assistance (the Schedules) includes the federal and state award activity of the City of Miami, Florida (the City) under programs of the federal and state government for the year ended September 30, 2021. The information in the Schedules are presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and Chapter 10.550, Rules of the Florida Auditor General (Chapter 10.550). Because the Schedules present only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in fund balance/net position or cash flows of the City. Note 2. Summary of Significant Accounting Policies Expenditures reported on the Schedules are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and Chapter 10.550 wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedules represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Note 3. Indirect Cost Rate The City elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. 11 City of Miami, Florida Schedule of Findings and Questioned Costs Fiscal Year Ended September 30, 2021 Section I — Summary of Independent Auditor's Results Financial Statements Type of report the auditor issued on whether the financial statements audited were prepared in accordance with GAAP: Unmodified Internal control over financial reporting: Material weakness(es) identified? Yes X No Significant deficiency(ies) identified? Yes X None Reported Noncompliance material to financial statements noted? Yes X No Federal Awards Internal control over major programs: Material weakness(es) identified? Yes X No Significant deficiency(ies) identified? Yes X None Reported Type of auditor's report issued on compliance for major federal programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? Yes X No Identification of major federal programs: Assistance Listing Numbers 21.019 Name of Federal Program or Cluster COVI D-19 - Coronavirus Relief Fund 21.023 COVID-19 - Emergency Rental Assistance Program 97.067 Homeland Security Grant Program Dollar threshold used to distinguish between type A and B programs: $3,000,000 Auditee qualified as low -risk auditee? X Yes No (Continued) 12 City of Miami, Florida Schedule of Findings and Questioned Costs (Continued) Fiscal Year Ended September 30, 2021 Section I — Summary of Auditor's Results (Continued) State Financial Assistance Internal control over major projects: Material weakness(es) identified? Yes Significant deficiency(ies) identified? Yes Type of auditor's report issued on compliance for major projects: Unmodified X No X None Reported Any audit findings disclosed that are required to be reported in accordance with Chapter 10.550, Rules of the Florida Auditor General? Yes X No Identification of major state projects: CSFA Number(s) 40.901 Name of State Protect State Housing Initiatives Partnership (SHIP) Program Dollar threshold used to distinguish between type A and type B projects: $416,740 Section II — Financial Statements Findings No matters to report. Section III — Federal Awards Findings and Questioned Costs No matters to report. Section IV — State Financial Assistance Findings and Questioned Costs No matters to report. 13 City of Miami, Florida Summary Schedule of Prior Audit Findings Fiscal Year Ended September 30, 2021 No matters were reported in the prior year. 14 City of Miami, Florida Management Letter in Accordance With Chapter 10.550, Rules of the Florida Auditor General and Independent Accountant's Report on the Examination of the City's Compliance with Section 218.415, Florida Statutes Fiscal Year Ended September 30, 2021 Contents Management Letter in Accordance With Chapter 10.550, Rules of the Florida Auditor General 1-3 Independent Accountant's Report on the Examination of the City's Compliance with Section 218.415, Florida Statutes 4 RSM RSM US LLP Management Letter in Accordance With Chapter 10.550, Rules of the Florida Auditor General Honorable Mayor, Members of the City Commission and City Manager City of Miami, Florida Report on the Financial Statements We have audited the financial statements of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Miami, Florida (the City), as of and for the year ended September 30, 2021, and have issued our report thereon dated March 31, 2022. Our report includes a reference to other auditors who audited the financial statements of the following entities: 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: OMNI Redevelopment Agency Midtown Community Redevelopment Agency Southeast Overtown Park Redevelopment Agency Liberty City Community Revitalization District Trusts Virginia Key Beach Park Trust Fiduciary Component Units— Pension Trust Funds: Firefighters' and Police Officers' Retirement Trust General Employees' and Sanitation Employees' Retirement Trust This management letter does not include the results of the other auditors' testing of compliance and other matters that are reported on separately by those auditors. Auditor's Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance); and Chapter 10.550, Rules of the Florida Auditor General. THE POWER OF BEING UNDERSTOOD AUDIT I TAXI CONSULTING 1 42SM US _ _P s the U.S. member firm of R5.L1 Internationala e oLal etwork of independent audit, tax. and consulting firms. Visit rsmus.com/aboutus Far mare information regard i_; .YSM -5 LLP and P.S'.4 I:c....r isr al. Other Reporting Requirements We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; Independent Auditor's Report on Compliance for Each Major Federal Program and Major State Project; Report on Internal Control over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance and Schedule of State Financial Assistance Required by Chapter 10.550, Rules of the Florida Auditor General and Independent Accountant's Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Florida Auditor General. Disclosures in those reports and schedules should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Florida Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding financial audit report. In connection with our audit, there were no findings and recommendations made in the preceding financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Florida Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. This is disclosed in Note 1 of the financial statements. Financial Condition and Management Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Florida Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether or not the City met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific condition(s) met. In connection with our audit, we determined that the City did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Florida Auditor General, we applied financial condition assessment procedures for the City. It is management's responsibility to monitor the City's financial condition, and our financial condition assessment was based in part on representations made by management and review of financial information provided by same. Section 10.554(1)(i)2., Rules of the Florida Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Special District Component Units Section 10.554(1)(i)5.c., Rules of the Florida Auditor General, requires, if appropriate, that we communicate the failure of a special district that is a component unit of a county, municipality, or special district, to provide the financial information necessary for proper reporting of the component unit within the audited financial statements of the county, municipality, or special district in accordance with Section 218.39(3)(b), Florida Statutes. In connection with our audit, we did not note any special district component units that failed to provide the necessary information for proper reporting in accordance with Section 218.39(3)(b), Florida Statutes. Additional Matters Section 10.554(1)(i)3., Rules of the Florida Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. 2 Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Mayor, City Commissioners, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. s,f PS ..4P Miami, Florida April 29, 2022 3 RSM RSM US LLP Independent Accountant's Report on the Examination of the City's Compliance with Section 218.415, Florida Statutes The Honorable Mayor, Members of the City Commission, and City Manager City of Miami, Florida We have examined the City of Miami, Florida's (the City) compliance with the specified requirements of Section 218.415, Florida Statutes, Local Government Investment Policies during the period October 1, 2020 to September 30, 2021. Management of the City is responsible for the City's compliance with the specified requirements. Our responsibility is to express an opinion on the City's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the City complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the City complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the City's compliance with the specified requirements. In our opinion, the City complied, in all material respects, with the specified requirements of Section 218.415, Florida Statutes, Local Government Investment Policies during the year ended September 30, 2021. This report is intended solely for the information and use of the Florida Auditor General, the Honorable Mayor and Members of the City Commission and applicable management of the City, and is not intended to be and should not be used by anyone other than these specified parties. LbP Miami, Florida April 29, 2022 THE POWER OF BEING UNDERSTOOD AUDIT I TAXI CONSULTING 4 RSM US _ _P s the U.S. member firm of RSM International. a e oLal etwork of independent aocit, tax. a c ,i.:irg firms. Visit rsmus.com/aboutus for more deformation regard lig.r SM ..5 LLP and P5I L.:c....r sr al.