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HomeMy WebLinkAboutBack-Up DocumentsCITY OF MIAMI, FLORIDA Fiscal Year Ended September 30, 2023 POPULAR ANNUAL FINANCIAL REPORT Prepared By: The Finance Department Erica T. Paschal Darling, CPA )irector Munirah Daniel, CPA Assistant Director Noel G. Ramos Controller Armando J. Blanco Treasurer FISCAL YEAR ENDED SEPTEMBER 30, 2023 TABLE OF CONTENTS INTRODUCTION About our City 1 Principal City Officials 2 City Organizational Chart 3 Geographic Location and Population 4 Miami by the Numbers 5 Economic Outlook 6 Achievements 7 Budget Process 8 FINANCIAL INFORMATION Financial Highlights 9 Net Position 10 Expenses 11 Revenues 12 Capital Assets 13 Long -Term Obligations 14 Cash and Investments 15 Fund Balance 16 Glossary 17 1 CITY OF MIAMI, FLORIDA POPULAR ANNUAL FINANCIAL REPORT Fiscal Year Ended September 30, 2023 • a , ' ,Or COVER PHOTO Miami Skyline Stock photos by: ESB Professiona and cvrestan The Finance Department would like to extend a special recognition to GSA -Graphics Division, for their creativity and support with the production of the Popular Annual Financial Report ABOUT the POPULAR ANNUAL FINANCIAL REPORT (PAFR) The Popular Annual Financial Report (PAFR) is an unaudited summary report of the financial activities of the City and is prepared primarily from detailed information contained in the City's 2023 Annual Comprehensive Financial Report, with selected information from Annual Comprehensive Financial Report's prepared for earlier years. The Annual Comprehensive Financial Report is prepared in accordance with generally accepted accounting principles (GAAP) and includes audited financial statements. As such, it provides much more detail as well as full disclosure of all material events, both financial and non -financial. The GAAP presentation also includes the City's component units (related organizations) and information on individual funds. The information in the Annual Comprehensive Financial Report by its nature can be technical and complex and as such not as useful to citizens wishing to gain an overview of the City's finances. The PAFR has been prepared to simplify the information in the Annual Comprehensive Financial Report and better inform the public about the overall financial condition of the City, without the heavy use of technical accounting terms or excessive detail. The PAFR is not intended to provide a complete financial picture of the City in accordance with GAAP. Questions or feedback concerning any of the information provided in this report or requests for additional financial information may be directed to the City's Finance Department via mail to 444 SW 2nd Avenue, 6th Floor, Miami, Florida 33130. TO VIEW THE CITY'S ANNUAL COMPREHENSIVE FINANCIAL REPORT AND POPULAR ANNUAL FINANCIAL REPORT (PAFR) PLEASE VISIT: City of Miami, Florida Finance Department 444 SW 2 Avenue, 6th Floor, Miami, Florida 33130 http://archive.miamigov.com/Finance/financialInfo.html POPULAR ANNUAL FINANCIAL REPORT 2023 The City of Miami was incorporated in 1896. The City is situated at the mouth of the Miami River on the western shores of Biscayne Bay. It is a main port of entry into Florida. Now 127 years old, the City is part of the nation's eighth largest metropolitan area. Incorporated in 1896, the City is the only municipality conceived and founded by a woman — Julia Tuttle. The City Charter was adopted by the electors of the City of Miami at an election held May 17, 1921 and legalized and validated by Chapter 9024 of the laws of the State of Florida of 1921. The Florida Legislature, in 1955, approved and submitted to a general election, a constitutional amendment designed to give a new form of government to Miami -Dade County, Florida ("County"). The County is, in effect, a municipality with governmental powers affecting thirty-five cities and unincorporated areas, including the City. The County has not displaced nor replaced the cities' powers but supplements them. The County can assume activities of the City's operations if the services fall below minimum standards set by the County Commission, or with the consent of the governing body of the City. Accordingly, the County's financial statements are not included in this report. Since 1997, the City has been governed by a form of government known as the "Mayor -City Commissioner plan." There are five Commissioners elected from designated districts within the City. City elections are held in November every two years on a non -partisan basis. Candidates for mayor must run as such and not for the commission in general. At each election, two or three members of the Commission are elected for four-year terms. The Mayor is elected at large every four years. As official head of the City, the Mayor has veto authority over actions of the Commission. The Mayor appoints the City Manager who functions as chief administrative officer. The City Manager serves as the administrative head of the municipal government, charged with the responsibility of managing the City's financial operations and organizing and directing the administrative infrastructure. The City Manager also retains full authority in the appointment and supervision of department directors, preparation of the City's annual budget and initiation of the investigative procedures. In addition, the City Manager takes appropriate action on all administrative matters. CITY SERVICES The City provides a full range of services, including police and fire protection, public works activities; refuse collections; building inspections; licenses and permits; vital statistics; the construction and maintenance of streets, and other infrastructure; recreational and cultural activities; and trolley services. CITY OF MIAMI 1 4111 CITYOaIIA I FLORID ►!7,. — • POPULAR ANNUAL FINANCIAL REPORT 2023 MISSION STATEMENT Miami is a modern and diverse city that is a global leader in technology, innovation, and resiliency. VISION The City of Miami is committed to elevating the quality of life of its residents by improving public safety, housing, mobility, diverse shared spaces that foster community, and efficient and transparent government. Miguel Angel Gabela Commissioner - District 1 Francis X. Suarez Mayor Damian Pardo Commissioner - District 2 Manolo Reyes Commissioner - District 4 Arthur Noriega V City Manager Joe Carollo Commissioner - District 3 Vice -Chairman Christine King Commissioner - District 5 Chairwoman Todd B. Hannon City Clerk Victoria Mendez City Attorney CITY OF MIAMI 2 CITY, -rl ORG(NIAT CHART, POPULAR ANNUAL FINANCIAL REPORT 2023 CITY COMMISSION Commissioner: Miguel Angel Gabela District 1 Commissioner: Damian Pardo District 2 Vice -Chairman: Joe CaroIto District 3 Commissioner: Manolo Reyes District 4 Chairwoman: Christine King District 5 ih City Attorney — Victoria Mendez City Clerk Todd B. Hannon Independent _ Auditor General Theodore Guba, CPA Executive Mayor I Francis X. Sua Chief Administrator / City Manager Arthur Noriega, V 1 Assistant City Manager Chief Financial Officer Larry M. Spring, Jr., CPA Finance Grants Administration Housing and Community Development Management and Budget Procurement Risk Management Real Estate and Asset Management Coconut Grove BID Downtown Development Authority Liberty City Trust Wynwood BID Little Haiti Revitalization Trust Assistant City Manager Chief of Operations Natasha Colebrook - Williams Code Compliance General Services Administration Human Services Innovation and Technology Parks and Recreation Solid Waste Fire Fighters' and Police Officers' Retirement Trust General Employees' and Sanitation Employees' Retirement Trust Midtown CRA Omni CRA Southeast Overtown Park West CRA Assistant City Manager Chief of Infrastructure Vacant 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 qual Opportuni and Diversity Programs MEM Human Resources Civil Service CITY OF MIAMI 3 GEOGRAPHIC -Y itATION _. ' AND;POPJJLATION-- POPULAR ANNUAL FINANCIAL REPORT 2023 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 464,225 residents according to the Bureau of Economic and Business research, University of Florida. In physical size, the City is not large, encompassing only 35.87 square miles. In population, the City is the largest of the 34 municipalities that make up Miami -Dade County. COMMISSION DISTRICTS Commissioner Miguel Angel Gabela Commissioner Damian Pardo Vice -Chairman Joe Carollo Commissioner Manolo Reyes Chairwoman Christine King I J SOUTH/WEST COCONUT GROVE LITTLE HAITI UPPER EASTSIDE I WYNWOOD/EDGEWATER District 2 Lr (� I DOWNTOWN.. District 3 i l CORAL • WAY BRICKELL NORTH/EAST COCONUT GROVE CITY OF MIAMI 4 CITY EMPLOYEES 4,643 POLICE 1 Station 3 Sub -stations PUBLIC WORKS411 661.E Streets (miles paved) PARK & RECREATION 164 Parks 43 Community Centers 1 POPULAR ANNUAL FINANCIAL REPORT 2023 FIRE 15 Stations MIAMI AREA 35.87 Sq. Miles POPULATION 464,225 The City of Miami is the largest of 34 municipalities that make up Miami -Dade County CITY OF MIAMI 5 b t 0 N-i.mil-az ing POPULAR ANNUAL FINANCIAL REPORT 2023 The Magic City, a moniker earned for the City's rapid growth after incorporation, continues to experience growth and development. With the third -largest skyline in the United States, the City is the heart of South Florida and continues to display impressive growth, emerging as a global city. Miami is a major center of commerce, culture, entertainment, the arts, and international trade, 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. In January of 2024, the Florida Commerce announced that the Miami metro area gained the highest number of private sector jobs over the year among all metro areas, increasing by 3.8 percent. The unemployment rate was reported at 1.4 percent, which is 0.5 percentage point decrease from the January 2023 rate of 1.9 percent. The Miami metro area led all metro areas in job gains over the year in five industry sectors leisure and hospitality, increasing by 12,200 jobs; construction, increasing by 4,500 jobs; professional and business services, increasing by 4,500 jobs; financial activities, increasing by 3,600 jobs; and manufacturing, increasing by 2,300 jobs. The industries gaining the most jobs over the year were leisure and hospitality and education and health services, increasing by 10,100 jobs. 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. ASH EVEME kl POPULAR ANNUAL FINANCIAL REPORT 2023 ([5 Government Finance Officers Association Award for Outstanding Achievement in Popular Annual Financial Reporting Presented to City of Miami Florida For its Annual Financial Report For the Fiscal Year Ended September 30, 2022 Executive Director/CEO The Government Finance Officers Association of The United States and Canada (GFOA) has given an award for Outstanding Achievement in Popular Annual Financial Reporting to the City of Miami, Florida for its Popular Annual Financial Report for the fiscal year ended September 30, 2022. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creativity, presentation, understandability and reader appeal. A GFOA award in Popular Annual Financial Reporting is valid for a period of one year only. We believe our current report continues to conform to the Popular Annual Financial Reporting requirements, and we are submitting it to the GFOA. The City of Miami, Florida was also awarded the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association of the United States and Canada for its Annual Comprehensive Financial Report for year ended September 30, 2022. The Certificate of Achievement is the highest form of recognition for excellence in state and local government financial reporting. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Annual Comprehensive Financial Report, whose contents conform to program standards. The report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is also valid for a period of one year. We believe our Annual Comprehensive Financial Report continues to conform to the Certificate of Achievement program requirements, and we have also submitted our Annual Comprehensive Financial Report for the current year to the GFOA. CITY OF MIAMI 7 e- T riROCESS END OF FEBRUARY Department Budget Submittals MARCH Mayor delivers "State of the City" address to City residents APRILTHROUGH MA Budget workshops are conducted with the department and budget analysts. Public Hearings are held for citizen's comments. d JULY Proposed Budget is finalized and introduction of Budget Ordinance to the City Commission. Commission also votes on the proposed millage rate. SEPTEMBER Review of Budget Ordinance and Public Hearings with City Manager and department directors LATE SEPTEMBER Adoption of Budget Ordinance J POPULAR ANNUAL FINANCIAL REPORT 2023 The annual budget serves as the foundation for the City's financial planning and control. The City's fiscal year is from October 1st to September 30th. The Mayor is required to prepare and deliver a budgetary address annually to the residents of the City. The City Commission is required to hold public hearings on the proposed budget and to adopt the final budget no later than September 30th preceding the beginning of the fiscal year on October lst. Budgets are monitored at varying levels of classification detail that include both personnel and operating as appropriation designations; however, budgetary control is legally maintained at the fund level, except for the general fund, which is maintained at the departmental operating level. CITY OF MIAMI 8 POPULAR ANNUAL FINANCIAL REPORT 2023 The information provided is summarized and represents only selected funds; therefore, it is not in accordance with generally accepted accounting principles (GAAP) and is not intended to represent all of the City's component units. The following table is a summary of select financial data for the past two fiscal years: FINANCIAL SUMMARY GOVERNMENTAL ACTIVITIES NET POSITIONS 2023 2022 Assets $ 2,464,061,735 $ 2,299,105,624 Deferred Outflows 679,623,620 712,257,594 Liabilities 3,304,991,327 3,111,775,783 Deferred Inflows 705,994,135 794,384,888 Total Net Position (Deficit) (867,300,107) (894,797,454) REVENUES Governmental Activities Total Revenues EXPENSES Governmental Activities Total Expenditures 1,373,983,040 1,373,983,040 1,346,485,693 1,346,485,693 1,227,856,410 1,227,856,410 1,213,665,001 1,213,665,001 CAPITAL ASSETS Governmental Activities 1,151,953,839 1,110,009,806 Total Capital Assets 1,151,953,839 1,110,009,806 LONG-TERM OBLIGATIONS Governmental Activities 442,964,442 479,842,688 Total Long -Term Obligations $ 442,964,442 $ 479,842,688 Governmental activities of the City — general government, planning, and development, community development, community redevelopment areas, public works, public safety, public facilities, parks and recreation, interest on long- term debt, lease financing. CITY OF MIAMI 9 POPULAR ANNUAL FINANCIAL REPORT 2023 The Government -wide Balance Sheet, known as the Statement of Net Position, presents information on all of the City's assets and liabilities, with the difference between the two reported as net position. Increases and decreases in net position serve as an indicator of the City's financial position and of the results of the City's operations. The liabilities and deferred inflows of resources of the City exceeded its assets and deferred outflows of resources at the close of the 2023 fiscal year by approximately $867.3 million (net position deficit). One portion of the City's net position is its investment in capital assets (e.g., infrastructure, land, buildings, machinery, and equipment), which is reported net of accumulated depreciation, less any related debt used to construct or acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in capital assets is reported net of related debt, it should be noted the resources needed to repay this debt must be provided from other sources, since the capital assets themselves are typically not used to liquidate these liabilities. As of September 30, 2023, the City's net investment in capital assets was approximately $780.8 million. An additional portion of the City's net position represents resources that are subject to restrictions on how they may be used. As of September 30, 2023, the City's portion of restricted net position was approximately $448.6 million. The remaining portion of the City's net position represents an unrestricted net deficit of approximately $2.1 billion, which is primarily due to outstanding liabilities for which there are no off -setting assets, which include claims payable, net pension liability, total OPEB liability, and compensated absences. At the end of the current fiscal year, the City's overall net position increased by approximately $27.5 million compared to the prior fiscal year. STATEMENT OF NET POSITION GOVERNMENT ACTIVITIES ASSETS Current and Other Assets Capital Assets Total Assets 2023 $ 1,312,107,896 1,151,953,839 2,464,061,735 2022 $1,189,095,818 1,110,009,806 2,299,105,624 CHANGE ($) $ 123,175,613 41,944,033 165,119,646 CHANGE (%) 10.36% 3.78% 7.18% DEFERRED OUTFLOWS OF RESOURCES 679,623,620 712,257,594 (32,633,974) -4.58% LIABILITIES Other Liabilities Long -Term Liabilities Total Liabilities 301,655,281 3,003,336,046 3,304,991,327 326,933,135 2,784,842,648 3,111,775,783 (11,880,208) 200,966,488 189,086,280 -3.63% 7.22% 6.08% DEFERRED INFLOWS OF RESOURCES 705,994,135 794,384,888 (88,390,753)-11.13% NET POSITION (Deficit) Net Investment in Capital Assets Restricted Unrestricted (Deficit) Total Net Position (Deficit) 780,830,574 448,588,697 (2,096,719,378) $ (867,300,107) 715,473,122 397,310,704 (2,007,581,280) $ (894,797,454) 50,963, 573 51,277,993 (70,451,420) $ 31,790,146 7.12% 12.91% 3.51% -3.55% POPULAR ANNUAL FINANCIAL REPORT 2023 WHERE DOES THE MONEY GO? During fiscal year 2023, expenses for governmental activities increased by $132.8 million, which is an increase of 10.9 percent in comparison to the 11 percent increase in expenses in the prior year. Expenses for General Government experienced the most significant increase of $96.8 million or 69.2 percent during the current fiscal year primarily due to a $27 million debt payment to the Port of Miami, $12 million of Public Official insurance, and overall increases in personnel and payroll related expenses. There were also noteworthy increases in Planning and Development of $24 million of 90.9 percent, Community Redevelopment Areas of $35.2 million or 75.6 percent, Parks and Recreation of $37.7 million or 90.1 percent, Public Works of $12.3 million or 10.1 percent, and Public Facilities of $7.8 million or 42.9 percent during the current fiscal year. All other areas (Community Development, Public Safety, and Interest on Long -Term Debt) experienced decreases. The following schedule reflects a summary of expenses compared to the prior year: TOTAL EXPENSES GOVERNMENTAL ACTIVITIES EXPENSES 2023 2022 2021 General Government $ 236,646,089 $ $ 139,895,526 $181,802,024 Planning and Development 50,292,697 26,342,054 32,322,698 Community Development 45,708,781 64,951,670 49,845,139 Community Redevelopment Areas 81,701,184 46,524,287 41,687,355 Public Works 134,553,426 122,261,123 128,492,915 Public Safety 675,352,316 736,037,131 693,848,367 Public Facilities 26,006,068 18,193,540 20,286,822 Parks and Recreation 79,559,292 41,850,258 60,233,253 Interest on Long -Term Debt 16,212,390 17,603,609 18,690,842 Lease Financing Interest 453,450 5,803 Total Expenses $1,346,485,693 $1,213,665,001 $1,227,209,415 Public Safety 50% Parks and Recreation Public Facilities Interest on Long -Term Debt 2% 1% Lease Financing Interest 0% Public Works 10% General Government 18% Planning and Development 4% Community Development 3% Community Redevelopment Areas 6% WHERE DOES THE MONEY COME FROM? During fiscal year 2023, total revenues for governmental activities increased over the prior year by $146.1 million and were more than the total expenses for the governmental activities. Specifically, property taxes increased over the prior year by $58.9 million, an increase of 11.1 percent, which was primarily driven by new construction Also, Charges for Services increased by 8.4 percent over the prior year primarily driven by the economy's continued recovery from the effects of the COVID 19 pandemic. Investment Earnings also increased significantly over the prior year by $45.2 million, an increase of 1,775 percent, which was primarily driven by improvement in market conditions from the economy's post pandemic rebounding and higher interest rates. The following schedule reflects a summary of revenue compared to the prior year: TOTAL REVENUES GOVERNMENTAL ACTIVITIES PROGRAM REVENUES 2023 2022 2021 Charges for Services $ 328,507,751 $ 302,932,638 $ 242,502,030 Operating Grants and Contributions 192,529,223 190,492,332 162,278,864 Capital Grants and Contributions 8,554,132 8,060,969 19,238,489 GENERAL REVENUE Property Taxes Franchise Taxes State Revenue Sharing - Unrestricted Sales and Other Use Taxes Public Service Taxes Investment earnings/(losses) - unrestricted Total Revenues Property Taxes 42.88% 589,219,768 530,270,191 505,088,763 61,217,502 57,001,420 50,339,450 23,010,534 22,494,052 18,716,613 47,769,337 49,108,943 40,024,004 80,527,456 70,042,172 65,846,228 42,647,337 (2,546,307) 1,056,799 $ 1,373,983,040 $ 1,227,856,410 $ 1,105,091,240 Sales and other use taxes Franchise Taxes 4.46% Public Service Taxes Investment Earnings - Unrestricted Charges for Services 23.91 Operating Grant and Contributions 14.01% State Revenue Sharing - Unristricted 1.67% Capital Grants and Contributions 0.62% CITY OF MIAMI 12 1 UMMA Y O _ COITAL A `~SSETS .� POPULAR ANNUAL FINANCIAL REPORT 2023 INVESTING IN OUR COMMUNITY The City's capital assets as of September 30, 2023, is $1.2 billion. Capital assets include land, buildings, improvements, machinery, equipment, and infrastructure. The total increase in capital assets from the end of the prior fiscal year is approximately $41.9 million. Major capital asset events during the current fiscal year included the following: Land increased approximately $6.2 million. Construction in progress increased approximately $42.9 million. The total transfers out and deletions of construction in progress amounted to approximately $48.9 million; however, there were additions of approximately $91.8 million in new expenditures. Buildings decreased by approximately $6.7 million. The decrease is primarily attributed to $7.6 million in depreciation expense. Improvements increased by approximately $3.4 million. The projects completed during the fiscal year and transferred from construction in progress totaled $9.1 million. There was also an addition of $0.2 million. These transfers and additions are offset by approximately $5.9 million of depreciation expense incurred for the current fiscal year. Machinery and Equipment decreased by approximately $4.7 million. There was $11.5 million in additions, primarily attributed to the acquisition of Fire, Police, Public Works, GSA, and Solid Waste light and heavy fleet vehicles and Police and Fire equipment. These expenditures are offset by $7.3 million in retirements and approximately $9.0 million in depreciation expense for the current fiscal year. Infrastructure increased by approximately $0.8 million. The projects completed during the fiscal year and transferred from construction in progress totaled $33.1 million and were primarily for roadway improvements and water control projects. This was offset by $32.3 million in net depreciation expense for the current fiscal year. The City also reported right of use lease and SBITA assets at year end of $13.4 million. CAPITAL ASSETS (NET OF DEPRECIATION) GOVERNMENTAL ACTIVITIES 2023 2022 Land $ 135,987,655 $ 129,779,204 Construction -in -Progress 304,849,813 261,904,470 Buildings 178,612,324 185,280,904 Improvements 49,669,481 46,266,327 Machinery and Equipment 53,274,971 57,989,784 Infrastructure 429,559,595 428,789,117 Total Capital Assets $1,151,953,839 $1,110,009,806 CITY OF MIAMI 13 LO 0 G TEkM IGATIONS-= POPULAR ANNUAL FINANCIAL REPORT 2023 As of September 30, 2023, the City's long-term obligations totaled $3.1 billion. Of this amount, $109.1 million is due within one year. The long-term obligations for the City include claims payable, debt, compensated absences, net pension liability, other post - employment benefit (OPEB) obligations, and leases and SBITA. The claims payable balance of $241.6 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, $37.2 million for potential legal claims and $202.8 million in connection with the City's self-insurance program. GOVERNMENTAL ACTIVITIES LONG-TERM OBLIGATIONS Ending Balance as of Amount Due September 30, 2023 Within One Year General Obligation Bonds — Direct Placement $ 63,025,000 $ 11,255,000 Special Obligation Bonds — Direct Placement 220,114,069 17,517,670 Loans — Direct Placement 39,265,373 10,052,065 Special Obligation Bonds 120,560,000 7,170,000 Total Debt Outstanding 442,964,442 45,964,735 Bond Premium (Discounts) 4,207,668 Compensated Absences 98,935,008 11,011,161 Claims Payable and other liabilities 241,620,610 50,186,915 Other Post -Employment Benefits 846,025,511 Net Pension Liability 1,465,095,098 Lease and SBITA Liability 13,625,178 1,998,268 Arbitrage Rebate Liability 23,610 Total Long -Term Obligations $ 3,112,497,125 $109,161,079 The City had total debt outstanding of $443.0 million plus $4.2 million of unamortized bond premiums as of September 30, 2023. Of this amount, $63 million is backed by the Limited Ad Valorem Tax Revenue; the remainder represents Special Obligation Bonds and loans secured solely by Non -Ad Valorem Revenue sources. LONG TERM DEBT General Obligation Bonds: Direct Payment Placement 14% Special Obligation Bonds 27% Loans Direct Placements Special Obligation Bonds - Direct Placements 50% CITY OF MIAMI 14 TYPES OF RISK Interest Rate Risk - the risk that the fair value of the City's investments will decrease as a result of an increase in interest rates. Credit Rate Risk — the risk that the City will not recover its investments due to the inability of the issuer to fulfill its obligation. Custodial Credit Risk — the risk that, in the event of failure of the issuer, the City will not be able to recover the value of its deposits, investments, or collateral securities that are in possession of an outside party. WAYS THE CITY MITIGATES RISK Interest Rate Risk - to limit its exposure to fair value losses arising from rising interest rates, the City's Investment Policy limits the maturity of an investment to a maximum of five years. Credit Rate Risk— in order to prevent over concentration by investment type, the City's Investment Policy provides for diversification of its portfolio which establishes limitations on portfolio composition by investment type and by issuer. Custodial Credit Risk — the City's Investment Policy requires that all securities be registered in the name of the City and be held with a third party custodian. The policy also requires that all securities purchased and all collateral obtained by the City should be properly designated as an asset of the City. As of September 30, 2023, pooled cash, cash equivalents and investments including restricted amounts of the primary government, exclusive of the Pension Trust Funds and discrete component units balances, consisted of the following: Investment Type Balance Standard & Moody's Poor's Rating Rating United States Treasury Notes $ 366,738,506 AA+ Aaa Federal National Mortgage Association 6,846,387 AA+ Aaa Federal Home Loan Mortgage Corporation 1,995,880 AA+ Aaa Federal Farm Credit Bank 10,402,283 AA+ Aaa Federal Home Loan Bank 129,318,945 AA+ Aaa Corporate Notes 44,181,366 A- A3 Commercial Paper 171,565,900 A-1 P-1 Money Market Fund 35,212 AAAm Aaa-mf Total Investments 731,084,479 Bank Deposits 195,894,177 Total Pooled Cash, Cash Equivalents and Investments $ 926,978,656 POPULAR ANNUAL FINANCIAL REPORT 2023 The following is a description of the City's fund balance classifications: Non Spendable Fund Balance — This amount includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Examples of this would be inventory, prepaid assets, and permanent endowments. Restricted Fund Balance — This amount includes amounts that are restricted to specific purposes stipulated by (a) external creditors, grantors, contributors, or laws or regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation. Committed Fund Balance — This amount includes amounts that can only be used for specific purposes pursuant to constraints imposed by resolution of the City's highest level of decision making authority, which is the City Commission. Once adopted by resolution, a resolution can only be revised or removed by adoption of a new resolution. Assigned Fund Balance — This amount includes amounts that are constrained by the City's intent to be used for specific purposes, but are neither restricted nor committed. Assignments are made directly by formal action of the City Commission. Unassigned Fund Balance — This amount is the residual classification for the General Fund. This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. An assigned fund balance cannot result in an unassigned fund balance deficit. The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the City's total General Fund balance was $216.0 million. Of this amount, the City has approximately $133.4 million retained as designated fund balance, which includes $43.2 million as restricted, approximately $51.9 million is reported as non -spendable for prepaid expenses and advances, approximately $38.3 million is designated as assigned fund balance, and approximately $82.6 million is unassigned fund balance in accordance with the City's Financial Integrity Ordinance. The General Fund's fund balance had a net increase of approximately $27.8 million during the current fiscal year. Although expenditures increased by $54.8 million, the increase was offset by an increase in revenues of $109.9 million and an increase in other financing sources totaling $58.1 million, which resulted in the net increase of the General Fund balance. FUND BALANCE - GENERAL FUND 2023 2022 Non Spendable $ 51,871,577 $ 37,893,799 Restricted 43,250,983 61,238,332 Committed - - Assigned 38,275,173 10,779,271 Unassigned 82,598,671 78,330,228 Total Fund Balances $ 215,996,404 $ 188,241,630 • r. . POPULAR ANNUAL FINANCIAL REPORT 2023 Current and Other Assets: Assets such as cash, investments, receivables and inventory that can be converted to cash within one year. Current Liabilities: Debts that can be paid off in one year or less, such as accounts payable and accrued payroll. Deferred Inflows of Resources: An acquisition of net position by the government that is applicable to a future reporting period. Deferred Outflows of Resources: A consumption of net position by the government that is applicable to a future reporting period. Expenses/Expenditures: Money spent or costs incurred through the city's operations. Fund: A self -balancing set of accounts which are segregated for specific activities or objectives. Funds are often referred to as "buckets." Fund Balance: The difference between assets and deferred outflow of resources and liabilities and deferred inflow of resources of a fund. General Fund: The chief operating fund of the city. Government Finance Officers Association (GFOA): Organization which represents public finance officials and promotes excellence in public finance by providing best practice guidance, recognition programs, research, and training. Long -Term Liabilities: Represents mainly debt obligations of the city. Millage Rate: Dollars of tax per $1,000 of taxable value. Net Position: The difference between assets and deferred outflow of resources and liabilities and deferred inflow of resources for the city as a whole. Prior Period Adjustment: The correction of an error or retroactive application of a new accounting rule. Revenues: Income from taxes and charges to individuals who purchase, use, or benefit from goods or services. CITY OF MIAMI _17 ■ 1. . . ifflkil . ~'MaiI• 4 _ . •• r7 0- *,7 .:op, _ } CITY OF MIAMI, FLORIDA Fiscal Year Ended September 30, 2023 X twitter.com/ miamifinance305 www.miami.gov Fiscal Year Ended September 30, 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 2023 Prepared By. The Finance Department Erica T. Paschal Darling, CPA Director Noel G. Ramos Controller Munirah Daniel, CPA Armando J. Blanco Assistant Director Treasurer Page left intentionally blank ANNUAL COMPREHENSIVE FINANCIAL REPORT 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT 2023 TABLE OF CONTENTS INTRODUCTORY SECTION (unaudited) Letter of Transmittal 1 City Organizational Chart 13 Principal City Officials 14 GFOA Certificate of Achievement 15 FINANCIAL SECTION Independent Auditor's Report 17 Management's Discussion and Analysis (unaudited) 21 Basic Financial Statements: Government -wide Financial Statements: Statement of Net Position 33 Statement of Activities 34 Fund Financial Statements: Governmental Funds: Balance Sheet 35 Reconciliation of the Balance Sheet - Governmental Funds to Government -wide Statement of Net Position 36 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 37 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds to the Statement of Activities 38 Fiduciary Funds: Statement of Fiduciary Net Position 39 Statement of Changes in Fiduciary Net Position 40 Discretely Presented Component Units: Statement of Net Position 41 Statement of Activities 43 Notes to the Financial Statements 45 Required Supplementary Information (unaudited): 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 ANNUAL COMPREHENSIVE FINANCIAL REPORT 2023 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 167 Budgetary Comparison Schedules: Special Revenue Funds: OMNI Community Redevelopment Agency (OMNI) Fund 177 Midtown Community Redevelopment Agency (Midtown) Fund 178 Southeast Overtown Park West Community Redevelopment Agency (SEOPW) Fund 179 Homeless Program Fund 180 Community Development Fund 181 Choice Housing Vouchers (Section 8) Fund 182 Mainstream Vouchers Program Fund 183 State Housing Initiatives Program (SHIP) Fund 184 Convention Center Fund 185 Economic Development & Planning Services Fund 186 Net Offices Fund 187 Parks and Recreations Fund 188 Police Services Fund 189 Law Enforcement Trust Fund 190 Public Works Services Fund 191 City Clerk Services Fund 192 Fire Rescue Special Revenue Fund 193 General Special Revenue Fund 194 Department Improvement Initiatives Fund 195 Transportation & Transit Fund 196 Miami Ballpark Parking Facilities Fund 197 Liberty City Revitalization Trust 198 Virginia Key Beach Trust 199 Solid Waste Recycling Trust 200 Little Haiti Revitalization Trust 201 Bayfront Park Trust Fund 202 ANNUAL COMPREHENSIVE FINANCIAL REPORT 2023 TABLE OF CONTENTS Debt Service Funds: General Obligation Bonds Fund 203 Special Obligation Bonds Funds 204 Fiduciary Funds: Combining Statement of Fiduciary Net Position 206 Combining Statement of Changes in Fiduciary Net Position 207 STATISTICAL SECTION (unaudited) Financial Trends: Net Position by Component 209 Changes in Net Position 210 Governmental Activities Tax Revenues by Source 211 Fund Balances - Governmental Funds 212 Changes in Fund Balances - Governmental Funds 213 Revenue Capacity: General Government Tax Revenues by Source 215 Net Assessed Value and Estimated Actual Value of Taxable Property 216 Property Tax Rates — Direct and Overlapping Governments 217 Principal Property Taxpayers 218 Property Tax Levies and Collections 219 Debt Capacity: Ratios of Outstanding Debt by Type 220 Ratios of General Bonded Debt Outstanding 221 Direct and Overlapping Governmental Activities Debt 222 Legal Debt Margin Information 223 Pledged Revenue Coverage 224 Demographics and Economic Information: Demographics and Economic Statistics 225 Principal Employers 226 Operating Information: Full -Time Equivalent City Government Employees by Function 227 Operating Indicators by Function 228 Capital Assets Statistics by Function/Program 229 Page left intentionally blank March 29, 2024 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, 2023. The financial statements were prepared in accordance with generally accepted accounting principles 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, 2023. 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 127 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 464,225 residents according to the Bureau of Economic and Business Research, University of Florida, 57.9 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 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. 1 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 department directors, preparation of the City's annual budget and initiation of the investigative procedures. In addition, the city manager takes appropriate action on all administrative matters. The City provides a full range of services, including police and fire protection; public works activities; refuse collection; building inspections; licenses and permits; vital statistics; the construction and maintenance of streets, and other infrastructure; recreational and cultural activities; and trolley services. The accompanying financial statements include those of the City and those of its component units. Component units are legally separate organizations for which the City is financially accountable or organizations that should be included in the City's 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. The major phases of the budget process are detailed in the Notes to the Required Supplementary Information Section of this report. 2 Local Economic Condition and Outlook The Magic City, a moniker earned for the City's rapid growth after incorporation, continues to experience growth and development. With the third -largest skyline in the United States, the City is the heart of South Florida and continues to display impressive growth, emerging as a global city. Miami is a major center of commerce, culture, entertainment, the arts, and international trade, 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. In January of 2024, the Florida Commerce announced that the Miami metro area gained the highest number of private sector jobs over the year among all metro areas, increasing by 3.8 percent. The unemployment rate was reported at 1.4 percent, which is 0.5 percentage point decrease from the January 2023 rate of 1.9 percent. The Miami metro area led all metro areas in job gains over the year in five industry sectors— leisure and hospitality, increasing by 12,200 jobs; construction, increasing by 4,500 jobs; professional and business services, increasing by 4,500 jobs; financial activities, increasing by 3,600 jobs; and manufacturing, increasing by 2,300 jobs. The industries gaining the most jobs over the year were leisure and hospitality and education and health services, increasing by 10,100 jobs. 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 and compares General Fund revenues and expenditures and transfers over the last four fiscal years. Some of the reasons for these trends are actions taken by the City and discussed further in this letter under the heading of Long -Term Financial Planning. Summary of General Fund Financial Results Fiscal Years 2020 - 2023 2023 2022 2021 2020 Revenues and Transfers In $ 1,046,645,479 $ 919,390,732 $ 806,565,574 $ 771,272,087 Expenditures and Transfers Out 1,018,890,705 888,662,207 845,618,928 774,651,001 Net Change in Fund Balance 27,754,774 30,728,525 (39,053,354) 3,378,914- Beginning Fund Balance 188,241,630 157,513,105 196,566,459 199,945,372 Ending Fund Balance $ 215,996,404 $ 188,241,630 $ 157,513,105 $ 196,566,459 3 Employment & Wealth Demographics The following information was reported by 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 1.8% 2.8% 3.8% $ 54,858 $ 67,917 $ 75,149 20.0% 12.7% 11.5% 78.8% 89.3% 89.1% 34.2% 32.3% 34.3% 22.1% 13.9% 9.3% Miami continues to maintain its seat as a major tourism hub, recently being ranked by MapQuest Travel as the second most visited city in the United States by foreign travelers. The City will continue to see an increase in international travelers with major annual events that attract visitors from across the country and world. These annual events include, but are not limited to, Formula 1 Grand Prix, Art Basel, Miami International Boat Show, Coconut Grove Arts Festival, Art Wynwood, Bayfront Park New Year's Eve Celebration, the Ultra Music Festival, and within a few years the World Cup. 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, being ranked by the Airport Council International (ACI) as the eighth business airport for global travel. At the close of 2023 MIA reported a total of 52.3 million passengers, which includes 29.1 million domestic travelers and 23.2 million international travelers. In addition, MIA offers more flights to Latin America, Caribbean and South America and serves as the nation's number one airport for international freight, transporting a total of 2.8 million tons in 2023. The overall financial impact to the local economy is $32 billion annually. PortMiami PortMiami, ("the Port") known as the "Cruise Capital of The World," is operated by the Seaport Depailiuent 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 and was recently named Best Cruise Port in North America by Cruise Critic. 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 FY 2023, the Port logged its record year 4 with 7.3 million cruise passengers and 1.1 million in twenty -foot equivalent units of containerized cargo (TEUs). The Port also welcomed Royal Caribbean Group's Icon of the Seas, the largest cruise ship in the world. Icon of the Seas will be homeported year-round from PortMiami. Long -Term Financial Planning and Major Initiatives To stabilize the fiscal 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 had to be made. Financing 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. The City is in the process of issuing an amount not to exceed $300.0 million of general obligation bonds. On November 20, 2023, the City of Miami closed on the Special Obligation Non -Ad Valorem Revenues Bonds for the purpose of the development, construction and equipping of the City's new administrative building and the acquisition and implementation of the Oracle Enterprise Resource Planning Cloud System. The total amount issued was $241.2 million. 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. 5 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 plan was finalized and adopted by City Commission in November 2021. For details on the City's FY 2022-2025 Strategic Plan please visit: https://www.miami gov.com/Services/Your-Government/City-of-Miami-Strategic-Plan Capital Improvement Plan The six -year Capital Improvement Plan (CIP) from FY 2024 to FY 2029 includes funding of $1.124 billion for 864 capital projects. During FY 2024 new capital budget appropriations totaling $39.9 million will be used to fund 49 projects as detailed in the Plan. City Funds make up the largest share of funding at 72.2 percent, followed by City Debt Proceeds at 15.9 percent. The remaining 11.9 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 $ 812,445,000 72.2% City Debt Proceeds 178,477,000 15.9% Private Donations/Other 16,197,000 1.4% State Grants 31,110,000 2.8% Federal Grants 40,555,000 3.6% Miami -Dade County Grants 40,412,000 3.6% Other Local Units 5,753,000 0.5% $ 1,124,949,000 6 100.0% Capital improvement Program Expenditures by Functions Description Amount Percent General Government $ 155,780,000 13.8% Streets and Sidewalks 209,178,000 18.6% Disaster Recovery 580,000 0.1% Mass Transit 14,661,000 1.3% Parks and Recreation 289,086,000 25.7% Public Facilities 196,001,000 17.4% Public Safety 109,676,000 9.7% Sanitary Sewers 6,543,000 0.6% Solid Waste 9,188,000 0.8% Storm Sewers 134,256,000 11.9% $ 1,124,949,000 100% The City has adopted a comprehensive set of financial policies. The policies are described below. Write-Ocf Policy The City adopted an accounts receivable Write -Off Policy on March 12, 2020, to set forth parameter for the management of the City to allow for the write-off of balances from certain defined types of customer accounts, whether with persons or entities, deemed uncollectible at a future date. It specifies the responsibilities over the administration of certain defined types of customer accounts receivable and the actions required to adjust those type of uncollectible accounts receivable. Further, it provides for enhanced collection efforts to ensure uniform, consistent efforts to recover receivables. Debt Management Policy The City adopted a revised Debt Management Policy on May 26, 2016, to provide guidance governing the issuance, management, continuing evaluation of and reporting on all debt obligations issued by the City. Additionally, the Policy will provide guidance for the preparation and implementation necessary to assure compliance. It is the responsibility of the Finance Committee to review and make recommendations regarding the issuance of debt obligations and the management of outstanding debt. The Finance Committee shall consist of seven voting members, consisting of five members from the local business community appointed by the City Commission, the Mayor or his designee, and the City's Finance Director as the City Manager's designee. Others who may be present at meetings of the Finance Committee to provide technical expertise and advice shall include representatives from the City Attorney's office, the Management and Budget Department, the Department to which the proposed debt may relate, the City's Financial Advisor, Bond Counsel and Disclosure Counsel. Meetings will be open to all interested parties and official minutes will be taken and copies made available upon request to the City Clerk. The City's Finance Committee will consider all issues related to outstanding and proposed debt obligations and will vote on issues affecting or relating to the credit worthiness, security and repayment of such obligations, including but not limited to procurement of services, structure, repayment terms and covenants of the proposed debt obligation, and issues which may affect the security of the bonds and ongoing disclosure to bondholders and interested parties. The following policies concerning the issuance and management of debt were established in the Debt Management Policy: (a) the City will not issue debt obligations or use debt proceeds to finance current operations, (b) the City will utilize debt obligations only for acquisition, construction or remodeling of capital improvement projects that cannot be funded from current revenue sources or in such cases wherein it is more equitable to the users of the project to finance the project over its useful life, (c) the City will measure the impact of debt service requirements of outstanding and proposed debt obligations on single year, five, ten and twenty-year periods. This analysis will consider debt service maturities and payment patterns as well as the City's commitment to a pay as you go budgetary capital allocation, (d) the City will evaluate the long-term operational impact of capital projects to the City's budget and five-year financial plan. Each proposed debt issuance will be accompanied by a statement from the City Manager stating the estimated operational impact of the project being financed, and (e) the City may periodically refinance debt to take advantage of lower interest rates which will result in a present value savings. The City may issue current refunding bonds that result in a minimum of three percent (3%) net present value savings, and advance refunding bonds that result in a minimum of five percent (5%) net present value savings. Refunding bonds shall not extend the final maturity of the bonds being refunded. If the present value savings is less than the threshold, or will result in a present value loss, and/or the maturity is greater than the maturity on the debt obligations to be refunded, the City may issue or enter into refunding Debt obligations but only after a finding by the Commission that a compelling public policy objective 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. 8 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, 2023, 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 balance shall be classified as either non -spendable, restricted, committed, or assigned based on standards and guidance established by the Governmental Accounting Standards Board (GASB). 9 For the 2023 fiscal year, the City's General Fund reserves increased by approximately $27.8 million and had an ending fund balance of approximately $216.0 million. Of the ending fund balance, approximately $43.2 million is restricted, approximately $51.9 million is non -spendable, approximately $38.3 million is assigned, and approximately $82.6 million is unassigned. The City complied 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 $82.6 million for both "Designated" and "Unassigned" for the 2023 fiscal year. The City's five-year forecast projects that revenues will grow faster than expenditures. Overall, General Fund revenues are projected to grow by 17.85 percent over the next five years and General Fund expenditures are projected to grow by 12.47 percent over the same period. 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 2024 to FY 2028 as normal step progression is included for all collective bargaining units and similar salary increases for non -bargaining employees. Risk Management — Self Insurance Program The City administers a self-insurance program for workers' compensation, tort liability, property, and group health and life insurance programs, subject to certain stop -loss provisions. The City also offers to its retirees' comprehensive medical coverage and life insurance benefits through its self-insurance plan. The health and life insurance programs are administered by an independent administrator. The City funds the program on a pay as you go basis. Insurance coverage is maintained with independent carriers for property damage to City facilities. The City maintains excess coverage with independent carriers for workers' compensation and general liability. The City allows for cost allocation of pension, health insurance and worker's compensation benefits in the operating departments and a centralized account from which payments are made. Certificate of Achievement The Government Finance Officers Association (GFOA) named the City of Miami a 2022 Triple Crown Winner. GFOA's Triple Crown designation recognizes governments who have received GFOA's Certificate of Achievement for Excellence in Financial Reporting, Popular Annual Financial Reporting Award and Distinguished Budget Presentation Award for a fiscal year. GFOA awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Annual Comprehensive Financial Report and Popular Annual Financial Report for the fiscal year ended September 30, 2022. 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. 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 and Popular Annual Financial 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. 10 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, 2022. 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. 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 depailments 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 Larry M Spring, CPA Assistant City Manager/ CFO Erica T. Paschal Darling CPA Finance Director 11 Page left intentionally blank 12 CITY COMMISSION Commissioner: Miguel Angel Gabela District 1 Commissioner: Damian Pardo District 2 Vice -Chairman: Joe Carollo District 3 Commissioner: Manolo Reyes District 4 Chairwoman: Christine King District 5 City Attorney Victoria Mendez City Clerk Todd B. Hannon Independent Auditor General Theodore Guba, CPA Executive Mayor Francis X. Suarez ANNUAL COMPREHENSIVE FINANCIAL REPORT 2023 Chief Administrator / City Manager Arthur Noriega, V Assistant City Manager Chief Financial Officer Larry M. Spring, Jr., CPA Finance Grants Administration Housing and Community Development Management and Budget Procurement Risk Management Real Estate and Asset Management Coconut Grove BID Downtown Development Authority Liberty City Trust Wynwood BID Little Haiti Revitalization Trust Assistant City Manager Chief of Operations Natasha Colebrook -Williams Code Compliance General Services Administration Human Services Innovation and Technology Parks and Recreation Solid Waste Fire Fighters' and Police Officers' Retirement Trust General Employees' and Sanitation Employees' Retirement Trust Midtown CRA Omni CRA Southeast Overtown Park West CRA Deputy City Manager Chief of Infrastructure Vacant 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 11= Civil Service 13 FRANCIS X. SUAREZ Mayor DAMIAN PARDO Commissioner MANOLO REYES Commissioner ARTHUR NORIEGA, V City Manager ANNUAL COMPREHENSIVE FINANCIAL REPORT 2023 MIGUEL ANGEL GABELA Commissioner JOE CAROLLO Vice -Chairman CHRISTINE KING Chairwoman VICTORIA MENDEZ City Attorney September 30, 2023 14 GD 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, 2022 04 44424\G P 7 .u-:'-C Executive Director/CEO 15 ANNUAL COMPREHENSIVE FINANCIAL REPORT 2023 Independent Auditor's Report Honorable Mayor and Members of the City Commission City of Miami, Florida Report on the Audit of the Financial Statements RSM RSM US LLP Opinions 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, 2023, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. In our opinion, based on our audit and the reports of the other auditors, the accompanying 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, 2023, 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. We did not audit the financial statements of the entities listed below: • Discretely Presented Component Units: Downtown Development Authority Bayfront Park Management Trust Wynwood Business Improvement District Coconut Grove Business Improvement District • Blended Component Units—Nonmajor Funds: OMNI Redevelopment Agency Virginia Key Beach Park Trust Little Haiti Revitalization Trust Midtown Community Redevelopment Agency Liberty City Community Revitalization District Trust Southeast Overtown Park West 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 31.2%, 37.5% and 39.8% of the total assets, net position and revenues, respectively, of the aggregate discretely presented component units. The blended component units listed above represent 6.6%, 10.5% and 9.0% 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 88.0%, 90.5% and 79.2% of the total assets, net position/fund balance and revenues/additions, respectively, of the aggregate remaining fund information. THE POWER OF BEING UNDERSTOOD AUDIT I TAX I CONSULTING RSM US LLP Is the U.S. member firm of RSM International, a global network of independent audit. tax. and d consulting firms. Visit rsmus.com/aboutus for more information regarding RSM US LLP and RSM International. The financial 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 those entities listed above, are based solely on the reports of the other auditors. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter As further discussed in Note 1, the City adopted the provision of GASB Statement No. 96, Subscription - Based Information Technology Arrangements. The impact of the adoption resulted in a restatement as of October 1, 2022 balances for right to use assets and subscription liabilities recorded in the financial statements. Our opinions are not modified with respect to this matter. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for 12 months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit 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 City's internal control. Accordingly, no such opinion is expressed. 18 • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. 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 benefits (OPEB) related information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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. Supplementary 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, as listed in the table of contents, are presented for purposes of additional analysis and are 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 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, 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. Other Information Management is responsible for the other information included in the Annual Comprehensive Financial Report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 19 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 29, 2024, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City's internal control over financial reporting and compliance. s,ti PS ..4P Coral Gables, Florida March 29, 2024 20 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, 2023. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 1-11 ofthis report. Financial Highlights o The liabilities and deferred inflows of resources of the City exceeded its assets and deferred outflows of resources at the close of the 2023 fiscal year by approximately $867.3 xwi&llcploOition deficit) o The City's total net position increased in fiscal year 2023 by $27.5 million compared to an increase in net position of$14.2 million during fiscal year2022. Total revenues exceeded total expenses in the current year primarily due to increases in revenues for charges for services, property taxes, and investment earnings (all continuing to rebound and strengthen from the effects of the COVID-19 pandemic on City operations); tempered by increases in expenses for general government, planning and development, community redevelopment areas, public works, public facilities, and parks and recreation; and overall decreases in expenses related to community development, public safety, and interest on long-term debt. o At the close of the current fiscal year, the City's governmental operating fund (General Fund) reported a fund balance of approximately $216.0 million, an increase of approximately $27.8 million in comparison with the prior year. o The City's total outstanding long-term liabilities had a net increase of approximately $ 218.5 million during the current fiscal year primarily due to increases in Other Post -Employment Benefit (OPEB) Liability and Net Pension Liability. Overview of Financial Statements This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements are comprised of three components: 1) government -wide financial statements 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -Wide Financial Statements The government -wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to private -sector business. The focus of the statement of net position presents financial information on all of the City's assets and liabilities, and deferred inflows/outflows of resources with the difference reported as net position (deficit). Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for som items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). The information is presented with the intent to summarize and simplify the user's analysis of the cost for the primary government and its component units' governmental activities. Both of the government -wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenugevOnmental activities The governmental activities of the City include general government, planning and development, community development, community redevelopment areas, public works, public safety, public facilities, and parks and recreation. 21 CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) September 30, 2023 The government -wide financial statements include not only the City itself (known rthrey governmer},tbut also its discretely presented component units, which are other governmental units over which the City can exercise influence and/or may be obligated to provide financial subsidies. Financial information for these component units is reported separately from the financial information presented for the primary government itself. The blended component units, although legally separate, function for all practical purposes as depaitinents of the City, and therefore have been included as an integral part of the primary government. The government -wide financial statements can be found on pages 33-34 ofthis report. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregate( for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and fiduciary funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in assessing a government's near -term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the government's near -term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains thirty-seven individual governmental funds. Information is presented separately in the governmental fund balance sheets and in the governmental fund statements of revenues, expenditures and Chang( in fund balances for the General Fund, General Obligation Bonds Projects Fund, Other Capital Projects Fund, Emergency Services Fund and Impact Fee Fund, which are considered major funds. Data from the other thirty-two governmental funds are combined into a single aggregated presentation. Individual fund data for each of these 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 debt service funds. Budgetary comparison schedules have been provided for the general fund, special revenue funds and debt service funds. The basic governmental fund financial statements can be found on pages 35-38 ofthis report. 22 CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSS ION AND ANALYSIS (Unaudited) September 30, 2023 Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not reported in the government -wide financial statements because the resources of those funds are not available to support the City's own programs and operations. The basic fiduciary fund financial statements can be found on pages 39-40 ofthis report. Notes to the FinancialStatements The notes provide additional information that is necessary to acquire a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on page 45-137 ofthis report. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning budgetary comparisons and the City's progress in funding its obligations to provide pension benefits to its employees. Required supplementary information can be found on pages 138-153 of this report. The combining statements referred to earlier in connection with non -major governmental funds are presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on pages 159-176 ofthis report. Government -Wide Overall Financial Analysis As noted earlier, net position over time may serve as a useful indicator of a government's financial position. In the case of the City, the assets and deferred outflows of resources was lower than liabilities and deferred inflows of resources by $867.3 million at the close of the most recent fiscal year, resulting in a net position (deficit).The City's net position reflects its investment in capital assets (e.g. infrastructure, land, buildings, machinery and equipment); net of accumulated depreciation, less any related debt used to construct or acquire those assets that still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets al not available for future spending. Although the City's investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capita assets themselves are typically not used to liquidate these liabilities. As of September 30, 2023, the City's net investment in capital assets was approximately $780.8 million. An additional portion of the City's net position represents resources that are subject to restrictions on how they may be used. As of September 30, 2023, the City's portion of restricted net position was approximately $448.6 million. The remaining portion represents an unrestricted deficit of approximately $2.1 billion, which is primarily due to outstanding liabilities for which there are no off -setting assets, which include claims payable, net pension liability, total OPEB liability, and compensated absences. At the end of the current fiscal year, the City 's net position increased from a net position (deficit) of approximately $894.8 million to a net position (deficit) of approximately $867.3 million. The reasons for this overall change are discussed in the following sections for governmental activities. 23 CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) September 30, 2023 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, 2023 and 2022 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) 2023 $ 1,312,194,415 1,151,953,839 2,464,148,254 679,623,620 301,655,281 3,003,336,046 3,304,991,327 705,994,135 780,830,574 448,588,697 (2,096,719,378) $ (867,300,107) 2022 $ 1,189,095,818 1,110,009,806 2,299,105,624 712,257,594 326,902,547 2,784,873,236 3,111,775,783 794,384,888 715,473,122 397,310,704 (2,007,581,280) $ (894,797,454) Change Change ($) (%) $ 123,098,597 41,944,033 165,042,630 10.35% 3.78% 7.18% (32,633,974) (4.58)% (25,247,266) 218,462,810 193,215,544 (7.72)% 7.84% 6.21% (88,390,753) (11.13)% 65,357,452 51,277,993 (89,138,098) $ 27,497,347 9.13% 12.91 % 4.44% (3.07)% 24 CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) September 30, 2023 The following table provides a summary of the City's changes in the statement of net position (deficit) for the fiscal years ended September 30, 2023, and 2022: Changes in Net Position (Deficit) as of September 30, 2023 and 2022 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 Investment Earnings/(Losses) - Unrestricted 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 Lease Interest Total Expenses Net Position (Deficit) - Beginning Net Position (Deficit) - Ending Go ve rnme ntal Activities 2023 Change 2022 Change (SI (%) 3 328,507,752 $ 302,932,638 $ 25,575,114 192,529,222 190,492,332 2,036,890 8,554,132 8,060,969 493,163 589,219,767 61.217,502 23,010,534 47,769,337 80,527,456 42,647,338 530,270, 191 57,001,420 22,494,052 49,108,943 70,042,172 (2,546,307) 58,949,576 4,216,082 516,482 (1,339,606) 10,485,284 45,193,645 8,44% 1.07%0 6.12% 11.12% 7.40% 2.29% (2.73)%0 14.97%© 1,775% 1,373,983,040 1,227, 856,410 146,126,630 11.90% 236,689,348 96,793,822 50,292,697 23,950,643 45,708,781 (19,242,889) 81,701,184 35,176,897 134,553,426 12,292,303 675,352,316 (60,684,815) 26,006,068 7,812,528 79,516,033 37,665,775 16,212,390 (1,391,219) 453,450 447,647 1,346,485,693 I ,213,665,001 132,820,692 139,895,526 26,342,054 64,951,670 46,524,287 122,261,123 736,037,131 18,193,540 41,850,258 17,603,609 5,803 27,497,347 14,191,409 69.19% 90.92% (29.63)%0 75.61% 10.05% (8.24)% 42.94% 90,00% (7.90)% 7,466.67% 10.94%© 13,305,938 93.76% (894,797,454) (908,988,863) 14,191,409 (1.56)% $(867,300,107) $ (894,797,454) $ 27,497,347 (3,07)% As noted earlier, the City's net position increased by approximately $27.5 million compared to prior fiscal year. The major changes are as follows: Total revenues for governmental activities increased over the prior year by $146.1 million and were more than the total expenses for the governmental activities. Specifically, property taxes increased over the prior year by $58.9 million, an increase of 11.1 percent, which was primarily driven by new construction. Also, Charges for Services increased by 8.4 percent over the prior year primarily driven by the economy's continued recovery from the effects of the COVID 19 pandemic. Investment Earnings also increased significantly over the prior year by $45.2 million, an increase of 1,775 percent, which was primarily driven by improvement in market conditions from the economy's post pandemic rebounding and higher interest rates. During fiscal year 2023, expenses for governmental activities increased by $132.8 million, which is an increase of 10.9 percent in comparison to the 1.1 percent increase in expenses in the prior year. Expenses for General Government experienced the most significant increase of $96.8 million or 69.2 percent during the current fiscal year primarily due to a $27 million debt payment to the Port of Miami, $12 million of Public Official insurance, 25 CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) September 30, 2023 and overall increases in personnel and payroll related expenses. There were also noteworthy increases in Planning and Development of $24 million of 90.9 percent, Community Redevelopment Areas of $35.2 million or 75.6 percent, Parks and Recreation of$37.7 million or 90.1 percent, Public Works of$12.3 million or 10.1 percent, and Public Facilities of $7.8 million or 42.9 percent during the current fiscal year. All other areas (Community Development, Public Safety, and Interest on Long -Term Debt) experienced decreases. The following charts provide a visual representation of the expenses and revenues for the governmental activities for fiscal year ended September 30, 2023: $800,00 0,000 $700,00 0,000 $600,000,000 $500,00 0,000 $400,00 0,000 $ 300.,00 0,000 $ 200,00 0,000 $ 100,00 0,000 $ Expenses and Program Revenues - Governmental Activities 1 • I • �■ _ ti ti y h e N. `��e� c ec of eo ��sea o `'a`'e 4\�se ceaN. c Quo r 're,�� Hoye eye\ eae! sec ��';L o��•G •�� <a met des `' o ¢`�� t7 `��a yQ�o4 Q Q Qo� 4t eo° c`ece fee % ' ebe' Q`e co."`'o( Q\ae 40 �`�� tis �o� •Q ■ Expenses ■ Revenues Revenue by Source - Governmental Activities ■ Property taxes 43% • Public services tax 6% • State revenue sharing - unrestricted 2% Source +h Amount Property taxes 43% S 589,219,76E Charges for services 24% 328,507,75I Operating grants and contributions 14% 192,529,223 Public services tax 6% 80,527,456 Franchise taxes 4% 61,217,502 Saks and other use cocci 3% 47,769,337 State revenue sharing - unrestricted 21'6 23,010,534 Investment earnings - unrestricted 3°o 42,647,337 Capital grants and contributions 1°4, 8,554,132 TOTAL 100"o S 1,373,983,04) • Charges for services 24% Operating grants and contributions 14% • Franchise taxes 4% Sales and other use taxes 3% • Investment earnings - unrestricted 3% • Capital grants and contributions 1% 26 CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSS ION AND ANALYSIS (Unaudited) September 30, 2023 Financial Analysis of Governmental Funds Gove rnme ntal Funds The focus of the City's governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available fo spending at the end ofthe fiscal year. The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the City's total General Fund balance was $216.0 million. Of this amount, the City has approximately $133.4 million retained as designated fund balance, which includes $43.2 million as restricted, approximately $51.9 million is reported as non -spendable for prepaid expenses and advances, approximately $38.3 million is designated as assigned fun( balance, and approximately $82.6 million is unassigned fund balance in accordance with the City's Financial Integrity Ordinance. The GeneralFund's fund balance had a net increase of approximately $27.8 million during the current fiscal year. Although expenditures increased by $54.8 million, the increase was offset by an increase in revenues of $109.9 million and an increase in other financing sources totaling $58.1 million which resulted in the net increase of the General Fund balance. Significant revenue increases included property taxes (11 percent), franchise and other taxes (11.6 percent), and licenses and permits (8.5 percent). Franchise fees and other taxes consist primarily of fees collected from various franchise licenses awarded to businesses or individuals granted permission to construct, maintain, or operate within the City of Miami, and accounts for 12.9 percent of the General Fund resources. This category includes fees such as Gas Franchise Fees, Electrical Franchise Fees, Utility Service Fees, Public Service Taxes (PST), an the Local Option Gas Tax (LOGT). Licenses and permits consist ofrevenues generated from the issuance oflocal professional and occupational licenses, building permits, and other licenses and permits such as fireworks/bench permits. These revenue increases reflect an improvement in the local economy which has continued recovering and strengthening from the downturn in 2020 as a result of the COVID-19 Pandemic . Notably, investment earnings increased significantly (1,801 percent) reflecting an improvement in market conditions and higher interest rates. Increased expenditures are primarily attributed to increases in retirement contributions and payroll related expenditures. Financial highlights ofthe City's other major governmental funds are as follows: The Other Capital Project Fund has a fund balance of$213.1 million. This represents an increase of approximately $18.7 million. The increase can be attributed to transfers in for capital projects and intergovernmental revenue s. The Emergency Services Fund has a fund balance of approximately $25.1 million. This represents an increase of approximately $5.3 million. Intergovernmental revenues received in 2023 are primarily related to American Rescue Plan Act (ARPA) and Emergency Rental Assistance funds from the Depaitinent of Treasury, and FEMA public assistance grant reimbursements for Hurricanes Ian and Irma, COVID-19, and the 2021 Surfside building incident funding. 27 CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) September 30, 2023 General Fund Budgetary Highlights The FY2023 Adopted Budget emphasizes economic recovery, infrastructure development, public safety, and employee well-being as the City continues rebounding and strengthening from the impact of the COVID-19 pandemic on the City's residents and on our government's bottom line. The budget maintains current service levels for waste collection without fee increases and allocates funding for initiatives like the Solid Waste's Homeless Empowerment Assistance Team Program. Infrastructure investments are prioritized through funding from the American Rescue Plan Act and the Miami Forever Bond, with a focus on Venture Miami, the City's tech ecosystem development program. The budget supports various anti -poverty, anti -litter, and workforce development programs, totaling $2.9 million. Public safety enhancements include $4.6 million for law enforcement equipment and a school crossing guard contract, along with funding for capital improvement projects such as storm sewer repairs and vehicle fleet replacement. The budget reinstates an independent Office of Resilience and Sustainability to address resilience challenges. Labor agreements with AFSCME and FOP are honored, with wage increases and absorption of increased insurance and workers' compensation costs, largely due to COVID-19 exposure claims. Additional funding supports part-time and seasonal employees, particularly in the Parks and Recreation Depaitnient, following a living wage policy of $15 per hour. The annual required contribution to the pension for Police and Fire increased due to a settlement agreement with the Fire Fighters' and Police Officers' Retirement Trust Fund. Notably, the overall millage rate decreased from 7.9900 in the prior year to 7.8774 for both the Operating (7.55390 mills) and Debt Service (0.3235 mills) Millage. The General Fund budget for FY2023 of approximately $1.0 billion is $71.6 million higher than last year's final amended General Fund budget of $928.4 million, a 7.7 percent increase. This is the part of the budget that funds the largest number of City functions or activities including police, fire, public works, building, and parks and recreation services. The FY2023 budget, is guided by the City's Strategic Plan, which has three priority areas: Quality of Life, Resilience, and Pathway to Prosperity. Goals within each of these areas include such things as: creating and enhancing shared civic spaces; enhancing mobility and transportation options; protecting and enhancing our waterfront; investing in resilient and smart public infrastructure; establishing a supporting environment for small businesses; and increasing and enhancing housing options. During the year, there was a total budget amendment of $50.5 million to increase the original budget of $965.3 million to $1.0 billion. This is mostly due to increases in intergovernmental revenues, franchise fees and other taxes, and interest. The City utilizes a five-year financial forecast to assist with the strategic decision -making process and to identify and prepare for future challenges. The five-year financial forecast projects that revenues will grow faster than anticipated expenditures. Overall, General Fund revenues are projected to grow by 17.9 percent over the next five years. However, General Fund expenditures are projected to grow by 12.5 percent over the same period. 28 CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) September 30, 2023 Capital Assets and Debt Administration Capital Assets The City's capital assets as of September 30, 2023, is $1.2 billion. Capital assets include land, buildings, improvements, machinery, equipment, and infrastructure. The total increase in capital assets from the end of prior year is approximately $41.9 million. Land Construction -in -Progress Buildings Improvements Machinery and Equipment Infrastructure Total Capital Assets (Net of Depreciation) As of September 30, 2023 Governmental Activities 2023 $ 135,987,655 304,849,813 178,612,324 49,669,481 53,274,971 429,559,595 $ 1,151,953,839 2022 $ 129,779,204 261,904,470 185,280,904 46,266,327 57,989,784 428,789,117 $ 1,110,009,806 Change Change ($) (%) $ 6,208,451 42,945,343 (6,668,580) 3,403,154 (4,714,813) 770,478 $ 41,944,033 4.78% 16.40% (3.60)% 7.36% (8.13)% 0.18% 3.78°/a Major capital asset events during the current fiscal year included the following: o Land increased approximately $6.2 million. o Construction in progress increased approximately $42.9 million. The total transfers out and deletions of construction in progress amounted to approximately $ 48.9 million; however, there were additions of approximately $91.8 million in new expenditures. o Buildings decreased by approximately $6.7 million. The decrease is primarily attributed to $7.6 million in depreciation expense. o Improvements increased by approximately $3.4 million. The projects completed during the fiscal year and transferred from construction in progress totaled $9.1 million. There was also an addition of $0.2 million. These transfers and additions are offset by approximately $5.9 million of depreciation expense incurred for the current fiscal year. o Machinery and Equipment decreased by approximately $4.7 million. There was $11.5 million in additions, primarily attributed to the acquisition of Fire, Police, Public Works, GSA and Solid Waste light and heavy fleet vehicles and Police and Fire equipment. These expenditures are offset by $7.3 million in retirements and approximately $9.0 million in depreciation expense for the current fiscal year. o Infrastructure increased by approximately $0.8 million. The projects completed during the fiscal year and transferred from construction in progress totaled $33.1 million and were primarily for roadway improvements and water control projects. This was offset by $32.3 million in net depreciation expense for the current fiscal ye ar. o The City also reported right of use lease and SBITA assets at year end of$13.4 million. Additional information on the City's right of use and capital assets can be found in Note 1 and Note 5 in the notes to the financial statements. 29 CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) September 30, 2023 Long -Tenn Debt At the end of the current fiscal year, the City had a total debt outstanding of $443.0 million plus $4.2 million of unamortized bond premiums. Of this amount, $63 million is backed by the Limited Ad Valorem Tax Revenue; the remainder represents Special Obligation Bonds and loans secured solely by Non -Ad Valorem revenue sources. The City's net debt decreased during the current fiscal yearby$36.9 million or7.7 percent. Outstanding Debt as of September 30, 2023 and 2022 Governmental Activities 2023 2022 $ Change % Change General Obligation Bonds - Direct Placements $ 63,025,000 $ 71,280,000 $ (8,255,000) (11.58)% Special Obligation Bonds - Direct Placements 220,114,069 234,200,040 (14,085,971) (6.01)% Loans - Direct Payments 39,265,373 44 057,648 (4,792,275) (10.88)% Special Obligation, Revenue Bonds and Loans 120,560,000 130,305,000 (9,745,000) (7.48)% Total $ 442,964,442 $ 479,842,688 $ (36,878,246) (7.69)% The City's current ratings for all of the various types of debt are shown below: City of Miami, Florida Bond Ratings Issue Moody's Standard &Poor's Fitch Limited General Obligation Bonds Aa2 AA A - Marlins Garage Bonds Aa3 AA- A+ Special Obligation Bonds Aa3 AA- A+ Street and Sidewalks Bonds A3 A AA - Additional information on the City's long-term liabilities can be found in Note 8 in the notes to the financial statements. 30 CITY OF MIAMI, FLORIDA MANAGEMENT'S DISCUSS ION AND ANALYSIS (Unaudited) September 30, 2023 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 electec officials. The process begins with the preparation of the financial outlook, a comprehensive review of allocation needs that are expected to be required by the City for its operations. These allocations include a review of salaries and wages (growth as dictated by negotiated union contracts); pension requirement needs, anticipated insurance premium increases, etc. These allocation needs are then compared to the City's anticipated revenue inflows to determine whether these needs can be satisfied. It is with this analysis, along with the Mayor and City Commissioners' feedback, and the City's comprehensive strategic plan, that the guidelines for preparing the budget toolkit are determined and compiled into an all-inclusive instructional booklet that is then distributed to departments for their use in preparing their budget submissions. The City's elected and appointed officials considered many factors when adopting the fiscal year 2023 budget. Included among these factors were uncertainties regarding pension costs, health insurance costs, other post -employment benefit costs, and other various economic indicators. Between FY 2024 and FY 2028, General Fund revenues are forecasted to grow by a total of 17.8 percent. The largest components of General Fund revenues are Property Taxes (5 0.8 percent of FY 2024 General Fund revenues), Franchise Fees and Other Taxes (12.6 percent), Charges for Services (12.7 percent), Licenses an Permits (8.4 percent), and Intergovernmental Revenues (10.7 percent). Interest, Fines and Forfeitures, Other Revenues, and Transfers -In comprise the remaining 4.8 percent. In fiscal year 2023, the total adopted property tax rate is 7.8774 mills, which represents a decrease from the prior year millage rate of 7.9900 mills. The FY 2024 Budget for General Fund property tax revenue is $529.7 million. This budget is based on an assessed valuation of $ 84.5 billion and a General Fund operating millage rate of 7.1364. The millage rate is assumed to remain flat over the five-year period. Taxable property values are projected to increase by 10 percent in FY 2025, eight percent in FY2026, and by five percent each remaining year of the forecast through FY 2028. This assumption is based on the expectation that the development activity in the City has leveled out and will remain flat through the end ofthe five-year period. Requests forinformation This financial report is designed to provide a general overview of the City's finances for all those with an interest in the government's finance demonstrate the City's accountabilityQuestions concerning any of the information provided in this report or requests for additional financial information should be addressd Itto the of Miami's Finance Department — Director, 444 Southwe$ ienue, Suite 618, Miami, Florida 33130, or visit the City's web site at www.miamigov.com. 31 Page left intentionally blank 32 City of Miami, Florida Statement of Net Position (Deficit) September 30, 2023 Governmental Component Activities Units Assets Cash, Cash Equivalents, and Investments $ 750,366,522 $ 81,925,379 Receivable - Net 42,723,499 3,598,721 Lease Receivable Current 3,167,795 576,465 Accrued Interest 4,237,012 - Due From Other Govemments 28,702,942 608,586 Land Held for Resale 90,971 - Prepaids 5,041,004 5,364,600 Other Assets 1,105,628 5,962,490 Lease Receivable Non -Current 286,666,512 1,465,084 Restricted Cash, Cash Equivalents, and Investments Related to Debt Proceeds 7,608,065 Restricted Cash, Cash Equivalents, and Investments 169,004,069 31,743,848 Capital Assets: Non -Depreciable 440,837,468 9,708,133 Depreciable - Net 711,116,371 74,790,475 Right to use leased and SBITA asset, net of accumulated amortization 13,480,396 - Total Assets 2,464,148,254 215,743,781 Deferred Outflows of Resources Deferred Loss on Refunding Bonds 12,142,683 1,304,467 Outflows Related to Pension 393,847,865 6,154,005 Outflows Related to OPEB 273,633,072 36,639 Total Deferred Outflows of Resources 679,623,620 7,495,111 Liabilities Accounts Payable and Accrued Liabilities 69,747,564 10,427,787 Due to Other Governments 28,913,925 3,190,844 Unearned Revenue 73,072,266 1,618,195 Deposits 17,417, 843 1,335,414 Accrued Interest Payable 3,342,604 1,051,200 Non -Current Liabilities: Due Within One Year: Bonds, Loans and Arbitrage 45,964,735 2,020,000 Compensated Absences 11,011,161 556,918 Claims Payable 50,186,915 Lease and SBITA Liability 1,998,268 142,718 Due In More Than One Year: Bonds, Loans and Arbitrage 401,230,985 49,959,065 Compensated Absences 87,923,847 757,817 Claims Payable 191,433,695 - Total Other Post Employment Benefits 846,025,511 227,081 Net Pension Liability 1,465,095,098 4,256,208 Lease and SBITA Liability 11,626,910 606,697 Total Liabilities 3,304,991,327 76,149,944 Deferred Inflows of Resources Inflows Related to Pension 54,808,232 69,306 Inflows Related to OPEB 352,500,101 207,033 Deferred Lease Revenue 298,685, 802 1,979,160 Total Deferred Inflows of Resources 705,994,135 2,255,499 Net Position (Deficit) Net Investment in Capital Assets 780,830,574 37,460,986 Restricted for: Capital Projects 231,977,832 12,147,594 Debt Service 18,492,870 2,465,572 Pension Benefits - 1,828,491 Parking Waiver and Transportation 5,200 1,784,116 Parking Surcharge - 535,521 Facilities Improvement 10,449,614 Building 43,245,783 - Housing Assistance and Economic Development 14,113,913 - Law Enforcement 1,437,988 - Community Redevelopment 89,591,630 - Choice Housing Voucher Program 77,534 - E-911 and Public Safety 9,043,088 Other 30,153, 245 111,000 Unrestricted (Deficit) (2,096,719,378) 88,500,169 Total Net Position (Deficit) $ (867,300,107) $ 144, 833,449 The notes to the financial statement are an integral part of this statement. 33 City of Miami, Florida Statement of Activities For the Fiscal Year Ended September 30, 2023 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 $ 236,689,348 $ 89,864,924 $ 96,230,439 $ 5,216,102 $ (45,377,883) $ Planning and Development 50,292,697 74,685,096 - 24,392,399 Community Development 45,708,781 1,424,687 41,451,888 (2,832,206) Community Redevelopment Areas 81,701,184 2,560,629 2,811,277 - (76,329,278) Public Works 134,553,426 72,264,863 339,493 6,554 (61,942,516) Public Safety 675,352,316 35,303,002 50,388,908 70,969 (589,589,437) Public Facilities 26,006,068 47,005,340 366,716 2,773,121 24,139,109 Parks and Recreation 79,516,033 5,399,211 940,501 487,386 (72,688,935) Interest on Long -Term Debt 16,212,390 - - - (16,212,390) Interest on Lease 453,450 (453,450) Total Primary Government $ 1,346,485,693 $ 328,507,752 $ 192,529,222 $ 8,554,132 $ (816,894,587) $ Component Units: Department of Off -Street Parking $ 52,909,560 $ 58,189,172 $ $ $ $ 5,279,612 Downtown Development Authority 10,190,819 - (10,190,819) Bayfront Park Management Trust 4,467,960 7,786,327 3,439,210 6,757,577 Coconut Grove BID 2,053,797 1,673,236 - (380,561) WynwoodBID 1,038,383 7,515,135 - 6,476,752 Civilian Investigative Panel 1,155,502 - 1,390,000 234,498 Total Component Units $ 71,816,021 $ 75,163,870 $ 1,390,000 $ 3,439,210 $ $ 8,177,059 General Revenues: Taxes: Property Taxes, levied for general purposes $ 566,428,649 $ 10,924,767 Property Taxes, levied for debt service 22,791,118 - Franchise Taxes 61,217,502 State Revenue Sharing 23,010,534 Sales and Other Use Taxes 47,769,337 Public Service Taxes 80,527,456 - Investment Earnings 42,647,338 1,936,655 Other General Revenues - 638,862 Total General Revenues 844,391,934 13,500,284 Change in Net Position 27,497,347 21,677,343 Net Position - Beginning (Deficit) (894,797,454) 123,156,106 Net Position - Ending (Deficit) $ (867,300,107) $ 144,833,449 The notes to the financial statement are an integral part of this statement. 34 General City of Miami, Florida Balance Sheet Governmental Funds September 30, 2023 Major Funds Non -Major Total Other Capital Emergency Governmental Governmental Projects Services Funds Funds Assets Pooled Cash, Cash Equivalents, and Investments $ 198,611,254 $ 229,104,135 $ 82,446,991 $ 247,812,207 $ 757,974,587 Restricted Cash, Cash Equivalents, and Investments - - 169,004,069 169,004,069 Receivables (Net of Allowance for Uncollectibles): Loans Receivable - 1,794 1,794 Accounts Receivable 31,638,775 1,627 4,669,233 36,309,635 Property Tax 6,134,881 277,189 6,412,070 Due From Other Governments 8,435,873 7,584,148 326,598 12,356,323 28,702,942 Lease Receivable 289,579,071 255,236 289,834,307 Due From Other Funds 8,711,004 8,711,004 Advance to Other Funds 46,830,573 46,830,573 Accrued Interest 2,979,525 4,109 1,253,378 4,237,012 Prepaids 5,041,004 5,041,004 Other Assets 29,157 1,076,471 1,105,628 Total Assets $ 597,991,117 $ 236,694,019 $ 82,773,589 $ 436,705,900 $ 1,354,164,625 Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts Payable and Accrued Liaibilities 27,032,702 14,770,980 864,705 26,541,265 69,209,652 Other Liabilities 533,688 4,224 537,912 Due to Other Funds 8,711,004 8,711,004 Advances From Other Funds 46,830,573 46,830,573 Due to Other Governments 24,448,599 4,465,326 28,913,925 Unearned Revenue 15,924,198 116,472 56,778,079 253,517 73,072,266 Deposits 17,109,755 308,088 17,417,843 Total Liabilities 85,048,942 14,887,452 57,642,784 87,113,997 244,693,175 Deferred Inflows of Resources Unavailable Revenue - Other Deferred Lease Revenue Total Deferred Inflows of Resources 6,134,881 1,071,853 290, 810, 891 7,634,613 296,945,772 8,706,466 759,189 240,298 999,487 7,965,923 298,685,802 306,651,725 Fund Balances (Deficit): Non -Spendable Fund Balance Non Spendable 51,871,577 1,000,000 52,871,577 Spendable Fund Balance Restricted 43,250,983 109,540,104 25,130,805 321,052,466 498,974,358 Committed 97,646,049 67,624,672 165,270,721 Assigned 38,275,173 5,913,948 2,086,832 46,275,953 Unassigned (deficit) 82,598,671 (43,171,554) 39,427,117 Total Fund Balances 215,996,404 213,100,101 25,130,805 348,592,416 802,819,726 Total Liabilities, Deferred Inflows and Fund Balance $ 597,991,118 $ 236,694,019 $ 82,773,589 $ 436,705,900 $ 1,354,164,626 The notes to the financial statement are an integral part of this statement. 35 City of1Vfiami, Florida Reconciliation of the GovemmentalFunds Balance Sheet to the Statement ofNet Position (Deficit) September30, 2023 Fund Balances - TotalGovernmentalFunds $ 802,819,726 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 2,960,783,791 (1,808,829,952) 1,151,953,839 Inventory for land held for resale are not financial resources and therefore are not reported in the governmental funds. 90,971 Deferred outflows related to pensions 393,847,865 Deferred outflows related to OPEB 273,633,072 Deferred inflow related to pensions (54,808,232) Deferred inflow related to OPEB plan (352,500,101) 260,172,604 Loss on refunding of debt is recognized in the Statement of Net Position (Deficit) and amortized over the term of the bond 12,142,683 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. 7,965,922 Right to use leased and SBITA asset used in governmental activities are notfinancial resources and, therefore, are not reported in the governmental funds. 13,393,877 Bonds, Notes, and Loans Payable Arbitrage Rebate Liability Compensated Absences Claims Liability Total OPEB Liability Net Pension Liability Lease and SBTTALiability Accrued Interest Payable (447,172,110) (23,611) (98,935,008) (241,620,609) (846,025,511) (1,465,095,098) (13,625,178) (3,342,604) (3,115,839,729) Net Position (Deficit) of Governmental Activities $ (867,300,107) The notes to the financial statement are an integral part of this statement. 36 City of Miami, Florida Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For The Fiscal Year Ended September 30, 2023 Revenues Property Taxes Franchise and Other Taxes Licenses and Permits Fines and Forfeitures Intergovernmental Revenues Charges for Services Investment Earnings Impact Fees Other Total Revenues Expenditures Current Operating: General Government Planning and Development Community Development Community Redevelopment Areas Public Works Public Safety Public Facilities Parks and Recreation Debt Service: Principal Lease Principal Lease Interest Interest and Other Charges Capital Outlay Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers In Transfers Out Proceeds from Sale of Property Issuance of Debt Issuance of Lease Total Other Financing Sources (Uses) Net Changes in Fund Balances Fund Balances - Beginning Fund Balances- Ending General Major Funds Other Capital Emergency Projects Services $ 477,979,040 $ - $ 141,744,958 102,132,204 7,131, 590 104,634,287 149,076,204 32,296,248 7,096,221 8,554,108 293,789 147,650 82,062,404 8,925 1,022,090,752 8,995,547 82,071,329 130,684,888 40,163,462 1,831,954 103,777,127 489, 874, 810 18,236,640 58,673,252 1,664,094 437,892 9,566,122 1,067,746 11,924,067 1,363,662 7,137,776 30,833 1,932,489 53,253,203 746,140 256,251 57,087,911 3,533,765 854,910,241 62,454,199 75,879,644 167,180,511 (53,458,652) 21, 593,167 (163,980,464) 912,162 2,049,398 68,379,568 (3,700,964) 7,432,552 6,191,685 Non -Major Governmental Funds Total Governmental Funds $ 111,240,727 $ 589,219,767 141,744,958 6,541,275 108,673,479 2,088,374 9,219,964 68,646,503 263,897,302 13, 506,297 162, 876,290 10,351,090 42,647,338 26, 752,331 26, 752,331 7,294,634 14,547,430 246,421,231 1,359,578,859 9,762,991 153,439,692 7,530,556 49,057,680 36,468,246 45,437,976 80,289,644 80,289,644 22,320,157 126,128,117 22,218,826 567,279,328 2,647,665 21,630,445 13,487,868 72,417,371 70,770,798 70,770,798 311,362 1,975,456 15,558 453,450 15,715,513 15,715,513 45,675,642 115, 863,440 327,214, 826 1,320,458,910 (80,793,595) 39,119,949 1,006 134,995,943 224,969,684 (844,956) (56,443,300) (224,969,684) 912,162 26,460,000 33,892,552 2,458,138 4,507,536 (139,425,737) 27,754,774 72,111,156 (843,950) 18,652,504 5,347,735 188,241,630 194,447, 597 19,783,070 $ 215,996,404 $ 213,100,101 $ 25,130,805 107,470,781 39,312,250 26,677,186 78,432,199 321,915,230 724,387,527 $ 348,592,416 $ 802,819,726 The notes to the financial statement are an integral part of this statement. 37 City of IVliami, Florida Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the FiscalYearEnded September30, 2023 Net Changes in Fund Balances - Total Governmental Funds $ 78,432,199 Amounts reported for governmental activities in the Statement of Activities are different because: The governmental funds reported right to use asset as expenditures, however, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as amortization expense Expenditures for right to use asset 4,773,913 Less Current year amortization expense (2,470,992) 2,302,921 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. (272,034) 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. 1,972,704 Expenditures for capital assets 111,089,527 Less: current year depreciation (62,055,110) 49,034,417 The net effect of various transactions involving capital assets (i.e. sales and disposals) is to decrease net position. Loss on disposal of capital asset The issuance of long -tern debt provides current financial resources and the payment of the principal on long -teen 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 -state revolving loan Issuance of Lease Principal payments on lease liability The net effect of amortizing the loss on debt refunding Arbitrage Liability Issuance of debt Refunding Bond 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 Total OPEB liability and related deferred inflows and outflows Net pension liability and related deferred inflows and outflows Accrued interest payable 70,770,798 702,176 (7,432,552) (4,507,536) 1,975,456 (1,521,147) (23,611) (26,460,000) (5,288,025) (15,499,367) (37,084,730) (72,836,034) 322,094 (3,005) (7,087,377) 33,503,584 (130,386,062) Change in Net Position (Deficit) of Governmental Activities $ 27,497.347 The notes to the financial statement are an integral part of this statement. 38 City of Miami, Florida Statement of Fiduciary Net Position Fiduciary Funds September 30, 2023 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 $ 17,190,875 7,040,788 3,673,969 27,905,632 157,406,129 391,072,354 1,173,048,423 38,579,876 353,384,590 137,152,163 184,843,300 2,435,486,835 Securities Lending Collateral 42,512,197 Total Assets 2,505,904,664 Liabilities Obligations Under Security Lending Transactions 42,512,197 Accounts Payable 1,216,834 Accrued Liability 16,495 Payable for Securities Purchased 4,987,726 Total Liabilities 48,733,252 Net Position Restricted for Pension Benefits $ 2,457,171,412 The notes to the financial statement are an integral part of this statement. 39 City of Miami, Florida Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Fiscal Year Ended September 30, 2023 Pension Trust Funds Additions Contributions: Contributions - Employer $ 163,416,523 Plan Members 32,273,371 Total Contributions 195,689,894 Investment Earnings: Net Increase in Fair Value of Investments 229,143,324 Interest 12,059,856 Dividends 22,036,823 Other 902,521 Total Investment Earnings 264,142,524 Security Lending Activities: Security Lending Income Security Lending Fees and Rebates Net Income From Security Lending Activities 163,232 (40,975) 122,257 Less Investment Expenses (6,170,413) Net Investment Expenses 258,094,368 Reimbursement from City for Administrative Costs 2,774,672 Total Additions 456,558,934 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 232,659,180 3,229,147 30,538,480 5,188,744 271,615,551 184,943,383 2,272,228,029 $ 2,457,171,412 The notes to the financial statement are an integral part of this statement. 40 Assets Cash, Cash Equivalent and Investments Receivables (Net of uncollectible accounts) Due From Other Governments Lease Receivable - Current Lease Receivable - Non -Current Prepaids Net pension assets and other assets Restricted Assets: Cash, Cash Equivalents, and Investments Capital Assets: Non -Depreciable Depreciable, Net Total Assets Deferred Outflows of Resources Deferred Loss on Refunding Bonds Outflows Related to Pension Outflows Related to OPEB Total Deferred Outflows of Resources Liabilities Accounts Payable and Accrued Liabilities Due to Other Governments Unearned Revenue Deposits Accrued Interest Payable Non -Current Liabilities Due Within One Year: Bonds and Loans Payable Compensated Absences Lease Liability Due In More Than One Year: Bonds and Loans Payable, Net Compensated Absences Other Post Employment Benefits Net Pension Liability Lease Liability Total Liabilities Deferred Inflows of Resources Inflows Related to Pension Inflows Related to OPEB Deferred Lease Revenue Total Deferred Inflows of Resources Net Position Net Investment in Capital Assets Restricted for: Capital Projects Debt Service Pension Benefits Parking Waiver and Transportation Parking Surcharge Other Unrestricted Total Net Position City of Miami, Florida Statement of Net Position Discretely Presented Component Units September 30, 2023 Department of Off -Street Parking $ 40,368,062 $ 394,877 608,586 576,465 1,465,084 5,289,062 411,847 31,743,848 9,078,604 66,319,828 Downtown Development Authority Bayfront Park Management Trust 15,886,496 $ 70,404 74,552 156,256,263 16,031,452 1,304,467 6,154,005 36,639 7,495,111 3,695,923 3,190,844 1,321,899 1,036,940 1,051,200 2,020,000 554,356 142,718 49,959,065 600,528 227,081 4,256,208 606,697 5,883,989 2,562 157,289 68,663,459 6,043,840 69,306 207,033 1,979,160 2,255,499 28,360,810 74,552 12,147,594 2,465,572 1,828,491 48,029,949 9,913,060 Coconut Grove BID 17,676,799 $ 138,993 43,154 629,529 7,907,728 26,396,203 652,960 296,296 298,474 1,247,730 8,537,257 16,611,216 446,396 897,486 2,474 5,535,643 380,567 7,262,566 154,467 154,467 380,567 942,316 535,521 5,249,695 $ 92,832,416 $ 9,987,612 $ 25,148,473 $ 7,108,099 The notes to the financial statement are an integral part of this statement. (continued) 41 City of Miami, Florida Statement of Net Position Discretely Presented Component Units September 30, 2023 Civilian Wynwood Investigative BID Panel Total Assets Cash, Cash Equivalent and Investments $ 7,199,944 $ 347,682 $ 81,925,379 Receivables (Net of uncollectible accounts) 2,096,961 - 3,598,721 Due From Other Governments - 608,586 Lease Receivable - Current - 576,465 Lease Receivable - Non -Current - 1,465,084 Prepaids 29,910 - 5,364,600 Net pension assets and other assets 15,000 - 5,962,490 Restricted Assets: Cash, Cash Equivalents, and Investments - 31,743,848 Capital Assets: Non -Depreciable - 9,708,133 Depreciable, Net 107,800 - 74,790,475 Total Assets 9,449,615 347,682 215,743,781 Deferred Outflows of Resources Deferred Loss on Refunding Bonds - 1,304,467 Outflows Related to Pension - 6,154,005 Outflows Related to OPEB - 36,639 Total Deferred Outflows of Resources - 7,495,111 Liabilities Accounts Payable and Accrued Liabilities 9,500 30,948 10,427,787 Due to Other Governments - 3,190,844 Unearned Revenue - 1,618,195 Deposits - 1,335,414 Accrued Interest Payable - 1,051,200 Non -Current Liabilities Due Within One Year: Bonds and Loans Payable - 2,020,000 Compensated Absences - 556,918 Lease Liability - 142,718 Due In More Than One Year: Bonds and Loans Payable, Net - 49,959,065 Compensated Absences - 757,817 Other Post Employment Benefits - 227,081 Net Pension Liability - 4,256,208 Lease Liability - 606,697 Total Liabilities 9,500 30,948 76,149,944 Deferred Inflows of Resources Inflows Related to Pension - 69,306 Inflows Related to OPEB - 207,033 Deferred Lease Revenue - 1,979,160 Total Deferred Inflows of Resources - 2,255,499 Net Position Net Investment in Capital Assets 107,800 - 37,460,986 Restricted for: Capital Projects - 12,147,594 Debt Service - 2,465,572 Pension Benefits - 1,828,491 Parking Waiver and Transportation 841,800 - 1,784,116 Parking Surcharge - - 535,521 Other 111,000 - 111,000 Unrestricted 8,379,515 316,734 88,500,169 Total Net Position $ 9,440,115 $ 316,734 $ 144,833,449 The notes to the financial statement are an integral part of this statement. 42 City of Miami, Florida Discretely Presented Component Units Statement of Activities For the Fiscal Year Ended September 30, 2023 Program Revenues Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions Department of Oft -Street Parking Transportation $ 52,909,560 $ 58,189,172 $ $ - Total Department of Off -Street Parking 52,909,560 58,189,172 - Downtown Development Authority Economic Development 10,190,819 Total Downtown Development Authority 10,190,819 Bayfront Park Parks and Recreation 4,467,960 7,786,327 3,439,210 Total Bayfront Park 4,467,960 7,786,327 3,439,210 Coconut Grove BID General Government Total Coconut Grove BID Wynwood BID General Government Total Wynwood BID 2,053,797 2,053,797 1,038,383 1,673,236 - 1,673,236 - 7,515,135 - 1,038,383 7,515,135 - Civilian Investigate Panel General Government 1,155,502 - 1,390,000 Total Civilian Investigate Panel 1,155,502 - 1,390,000 - Total Component Units $ 71,816,021 $ 75,163,870 $ 1,390,000 $ 3,439,210 General Revenues: Taxes: Property Taxes Investment Earnings 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. 43 City of Miami, Florida Discretely Presented Component Units Statement of Activities For the Fiscal Year Ended September 30, 2023 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 $ 5,279,612 $ Totals $ $ - $ $ - $ 5,279,612 5,279,612 - - - 5,279,612 (10,190,819) - - (10,190,819) (10,190,819) - - (10,190,819) 3,318,367 - - 6,757,577 3,318,367 - - 6,757,577 (380,561) - (380,561) (380,561) - (380,561) 6,476,752 - 6,476,752 6,476,752 - 6,476,752 234,498 234,498 234,498 234,498 $ 5,279,612 $ (10,190,819) $ 3,318,367 $ (380,561) $ 6,476,752 $ 234,498 $ 4,737,849 10, 924,767 767,273 409,620 286,044 473,718 322,271 88,000 228,591 10, 924,767 1,936,655 638,862 767,273 11,656,658 374,044 702,309 - 13,500,284 6,046,885 1,465,839 7,131,621 321,748 6,476,752 234,498 21,677,343 86,785,531 8,521,773 18,016,852 6,786,351 2,963,363 82,236 123,156,106 $ 92,832,416 $ 9,987,612 $ 25,148,473 $ 7,108,099 $ 9,440,115 $ 316,734 $ 144,833,449 The notes to the financial statement are an integral part of this statement. 44 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 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 464,225. 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 36.07 square miles ofland and 19.87 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 of the governing body of the 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, 2023. 45 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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). 46 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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 Depaittnent 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 47 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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 appointee 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, 48 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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, 2023. 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 Department 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 1t 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 Coconut Grove, Florida 33133 Wynwood BID 2751 North Miami Ave Suite 3 Miami, Florida 33127 Liberty City Community Revitalization Trust 4800 NW 1 ' Avenue Miami, Florida 33127-2218 Little Haiti Revitalization Trust 212 NE 50 Terrace Miami, Florida 33138 City of Miami General Employees'Elected Officer's & Sanitation Employees' Retirement Trust 2901 Bridgeport Avenue Coconut Grove, Florida 33133 Retirement Trust 444 S.W. 2dAvenue Miami, Florida 33130 49 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 B. Government -Wide Financial Statements 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, other po employment benefits, and leases) are allocated to activities based on each activities pro-rata share of th, cost incurred. Program revenues include 1) charges to customers or applicants who purchase, use, o directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items that are not deemed to be program revenues an reported instead as general revenues. C. Fund Financial Statements The accounts of the City are organized and operated on the basis of funds. A fund is an independent fiscal and accounting entity with a self -balancing set of accounts which comprise its assets, liabilities, deferred outflows/inflows of resources, fund balances/net position, revenues, and expenditures. Fund accounting segregates funds according to their intended purpose and it is used to aid management it demonstrating compliance with finance -related legal and contractual provisions. The City maintains the minimum number of funds consistent with legal and managerial requirements. The focus of governmental fund financial statements is on major funds as that term is defined in professional pronouncements. Each major fund is to be presented in a separate column, and non -major funds are aggregated and presented in a single column. The City maintains fiduciary funds which are used to account for assets held by the City in a trustee capacity. Since the governmental fund statements are presented on a different measurement focus and basis of accounting than the government -wide statements' governmental activities column, a reconciliation is presented which briefly explains the adjustments necessary to transform the fund level financial statements into the governmental activities column of the government -wide presentation. The City reports the following major governmental funds: 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. 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. 50 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 oEmergency 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. Additionally, the City reports the following fiduciary funds: o Pension Trust Funds —The pension trust funds account for the City of Miami Fire Fighters' and Police Officers' Retirement Trust ("FIPO'), the City of Miami General Employees' and Sanitation Employees' Retirement Trust ("GESE') and Other Managed Trusts (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 a 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 ofthe end of the fiscal period, except for grant revenues which are considered to be available if collected within one year. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to lease and SBITA obligations, legal fees, compensated absences, insurable claims, pollution remediation obligations, pension benefits, and other post -employment benefits are recorded only when payment is due or when the City has made a decision to fund these obligations with current available resources. Certain revenues associated with the current fiscal period are considered measurable, subject to accrua and are recognized as revenues ofthe current fiscal period when available. These include: o Property taxes o Intergovernmental revenue o Sales tax, franchise and utility taxes o Charges for services o Interest o Impact Fees All other revenue items are considered to be measurable only when cash is received by the City. 51 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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 ofthree months or less when purchased, to be a cash equivalent. Investments, including those of the Pension Trust Funds, are recorded at fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City and the Pension Trust Funds categorizes its fai value measurements within the fair value hierarchy established by GASB 72 - Fair Value Measurement and Application. The hierarchy is based on the valuation inputs to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. In addition, certain investments are measured at the net asset value (NAV) per share (or its equivalent) or amortized cost. See Note 2 for more detail regarding methods used to measure the fair value of investments. Interfund Receivables, 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 fiscalyear- end. Leases and Subscription Based Information Technology Arrangements (SBITAs) A lease is defined as a contractual agreement that conveys control of the right to use another entity's nonfinancial asset as specified in the contract for a period of time in an exchange or exchange -like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment. The City of Miami is a lessor for noncancellable leases of buildings. The City recognizes a lease receivable and a deferred inflow of resources in the government -wide and governmental fund financial statements. At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the leas( receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payment received at or before the lease commencement date. Subsequently, the deferred inflow of resources i; recognized as revenue over the life of the lease term. 52 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. o The City of Miami uses its estimated incremental borrowing rate as the discount rate for leases. o The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee. The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that arc expected to significantly affect the amount of the lease receivable and related amounts. The City's lease receivable is measured at the present value of lease payments expected to be receive during the lease term. A deferred inflow of resources is recorded for the lease at the initiation of the lease in an amount equal to the initial recording of the lease receivable. The deferred inflow of resources is amortized on a straight-line basis over the term of the lease. The lease receivable is liquidated and interest is recognized over the lease term as payments are received from the lessee. A SBITAs is defined as a contract that conveys control of the right to use another party's (a SBITA vendor's) information technology (IT) software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange -like transaction. At the commencement of each subscription, the liability is measured at the present value of payments expected to be made during the term. Subsequently, the subscription liability is reduced by the principal portions of payments made. The Right -to -use subscription assets are measured as the initial amount o the individual liabilities, adjusted for payments made at or before the subscription commencement dates, plus certain initial direct costs. Subsequently, the right -to -use subscription assets are amortized on a straight-line basis over their useful lives. Key estimates and judgments related to subscriptions include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments. o The City of Miami uses its estimated incremental borrowing rate as the discount rate for subscriptions. o The subscription terms include the noncancelable period of the subscriptions. Subscription payments included in the measurement of the subscription liability is composed of fixed payments. Leases and SBITAs are included in capital assets and long-term liabilities on the Statement of Net Position. 53 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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 historicalcost if purchased or constructed. Donated capital asse are recorded at acquisition value on the date of the donation. Major outlays for capital assets and improvements are capitalized as projects are constructed. The cost of normal maintenance and repair; that do not add to the value of the asset or materially extend asset lives are not capitalized. Property, plant, equipment, leased and SBITA assets and infrastructure are depreciated/amortized 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 Right ofUse Leased and SBITA Assets 5 -20 Right of Use Leased and SB1TAAssets The leased and SBITA assets are amortized on a straight-line basis over the shorter of the life of the assets or the related lease and SBITA term. 54 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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 are 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 assets that applies to future periods. The City has three items that qualifies for reporting in this category. The first two items are deferred outflow of resource related to pension benefits and other post -employment benefits (OPEB). Deferred outflows on pensions arise from differences between projected and actual earnings on pension plan investments and are amortized t( pension expense using a systematic and rational method over a closed five-year period. Deferred outflows on pensions and OPEB also include the difference between expected and actual experience with regard to economic or demographic factors, and changes in actuarial assumptions. These are amortized over the average expected remaining service lives of all employees that are provided with pensions and OPEB through each plan. Employer contributions to pension and OPEB plans made subsequent to the measurement date are also deferred and reduce the net pension liability and tota 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 assets that applies to future period and so will not be recognized as ar 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. A deferred inflow of resources for leases is recorded at lease initiation and amortized on a straight-line basis over the applicable lease term. 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 pensions and OPEB arise from changes in actuarial 55 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 assumptions. This amount is amortized over a period equal to the average of the expected remaining service lives (in years) of all employees that are provided with benefits through the OPEB plan. Employee Benefit Plans and Net Pension Liability -The City provides separate defined benefit pension plans for general employees, sanitation employees and for uniformed police and fire department personnel, as well as a defined contribution pension plan created in accordance with Internal Revenue Code (IRC") Section 401(a) primarily for directors and other unclassified administrator employees. The City also offers an optional deferred compensation plan created in accordance withIRC Section 457. For the purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, the City's defined benefit pension plans and additions to/deductions from the plans' fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. 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 Revenue Received in Advance - Other 16,177,714 Revenue Received in Advance - Grants 56,894,552 Total $ 73,072,266 56 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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, SBITA and leased assets reduced by accumulated depreciation and by any outstanding deb incurred to acquire, construct, or improve those assets, excluding unexpended proceeds. Deferred outflow and inflow of resources that are attributable to acquisition of those assets or related debt are included in this component of net position. Net position is reported as restricted when there are legal limitations imposed on its use by enabling legislation from State Statutes, City legislation or external restrictions by other governments, creditors, or grantors. Unrestricted netposition (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. 57 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 Fund Balance GASB 54, Fund Balance Reporting and Governmental Fuhpe Definition 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 City Commission or management. 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. 58 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 The following schedule classifies the City's fund balances as of fiscal year-end September 30, 2023: City of Miami, Florida Fund Balance (Deficit) Classification Governmental Funds September 30, 2023 Major Funds General Non -Major Total Other Capital Emergency Governmental Governmental Projects Services Fonds Funds FUND BALANCES (DEFICIT) Non Spendable: Recycling Funds $ - $ - $ - $ 1,000,000 $ 1,000,000 Prepaid Items 5,041,004 5,041,004 Long Term Due from Other Funds 46,830,573 46,830,573 51,871,577 1.000,000 52,871,577 Spendable: Restricted for: Debt Service (Required by Debt Covenants) - 19,314,378 19,314,378 Water Sewer Combination - 9,938,177 - - 9,938,177 Emergency and Disaster Relief 25,130,805 364,717 25,495,522 Park Projects 10,832,788 - 1,129,990 11,962,778 Capital Improvements 51,967,063 104,910,850 156,877,913 Transportation and Transit 5,200 3,697,625 20,631,970 24,334,795 Housing and Urban Development - 13,582,980 13.582,980 Public Safety 2,051,831 9,582,291 11,634,122 Building 43,245,783 - 43,245,783 Facilities Improvement 18,175,062 10,449,614 28,624,676 Public Works 12,011,352 2,242,600 14,253,952 Other 866,206 1,885,171 2,751,377 CRA - 90,875,043 90,875,043 Economic Development 45,587,400 45,587,400 Solid Waste - 86,641 86,641 Human Services 408,821 408,821 43,250,983 109,540,104 25,130,805 321,052,466 498,974,358 Committed to: Housing and Urban Development - 15,991,763 15,991,763 Capital lmprovement 16,316,939 - 16,316,939 Transportation Projects 1,500,000 - 1,500,000 Public Safety - 3,940,416 - 279,107 4,219,523 Public Works - 3,771,457 1,648,563 5,420,020 Facilities Improvement 18,592,893 18,592,893 Parks Projects 9,129,477 3,249,424 12,378,901 Water -Sewer Combination - 3,121,998 - - 3,121,998 Other 39,959,390 46,394,895 86,354,285 Solid Waste 1,213,479 5,655 1,219,134 Human Services - 55,265 55,265 Building 100,000 - 100,000 97,646,049 67,624,672 165,270,721 Assigned to: Public Safety - - 100,324 100,324 Public Facilities Projects 4,134,818 - 4,134,818 Post -Retirement Benefits, Self -Insurance Claims and Other 38,275,173 - 38,275,173 Capital improvement 1,779,130 - 1,779,130 Other - - 1,986,508 1,986,508 Unassigned: Other (deficit) 38,275,173 5,913,948 2,086,832 46,275,953 82,598,671 (43,171,554) 39,427,117 Total Fund Balance (Deficit) $ 215,996,404 $ 213,100,101 $ 25,130,805 $ 348,592,416 $ 802,819,726 59 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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 2020, 2021, an 2022 were approximately $825.9 million. Based on this, the City is required to individually retain a designated and unassigned fund balance of approximately $82.6 million each. The designated fund balance consists of amounts classified as either nonspendable, restricted, committed, or assigned an( such designation shall be based on the standard and guidance established, and amended from time 1 time by the GASB. As of September 30, 2023, the City has $133.4 million of fund balance which meets the above designated fund balance criteria, and has reported an unassigned fund balance of $82.6 minim as required in accordance with the City's Financial Integrity Ordinance. These amounts combined equal the total General Fund Balance of $216.0 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 Expenditures overAppropriations The following funds' actual expenditures exceeded appropriations for the year -ended September 30, 2023 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. Fund Balance (Deficits) Exceeds Budget Fund Authorization General: Dept Human Services $ 14,714 Finance 1,658,860 Non -Departmental 1,627,674 Building 117,767 Solid Waste 21,556 Fire - Rescue 208,290 Real Estate and Asset Management 275,640 Special Revenue: Homeless Program 160,678 Transportation & Transit 1,560,607 60 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 The following fund had a fund balance deficit in the amount indicated as of September 30, 2023: Fund Deficit Capital Projects: General Obligation Bonds Projects $ 43.198,607 The fund balance deficit reported as of year-end for the General Obligation Bonds Projects will be eliminated when the fund issues debt at a future date. The City Commission approved Declarations of Intent, which declares the City's intent to issue bonds to eliminate the deficit and reimburse the general fund for amounts owed. New Accounting Pronouncements The City adopted the following pronouncements for the year ended September 30, 2023: 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 condui 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 condui debt obligations; and improving required note disclosures. The City adopted this Statement with no material effect. 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 City adopted this Statement with no material effect. GASB Statement No. 96, Subscription -Based Information Technology ArrangementsThis Statement provides guidance on the accounting and financial reporting for subscription -based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right -to -use subscription asset —an intangible asset —and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as .aTikenihalact of the adoption resulted in a restatement of the October 1, 2022 balances for right to use assets and subscription liability in the amount of $11.1 million. GASB Statement No. 99, Omnibus 2022The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and accounting and financial reporting for financialguarantees. Certain requirements of this pronouncement were applicable during fiscal year 2022 but did not have an impact on the City's financial statements. The remaining requirements of this Statement were effective for the City beginning with its year ending September 30, 2023. The City adopted this Statement with no material effect. 61 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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 three-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 ChaptSreZ8/@ijy 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 tl original cost, at the time ofpurchase, of each investrIna'nttments not listed in this policy are prohibited. 62 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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 (NIIVff'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 (AAAr/E mf, or equivalent) 63 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 At September 30, 2023, the City's bank balance was $286.2 million. This included cash invested by the bank as part of a sweep account. Pooled cash, cash equivalents and investments including restricted amounts of the primary government, exclusive of the Pension Trust Funds and discrete componentunits balances, consisted of the following: Investment Type Balance United States Treasury Notes $ 366,738,506 Federal National Mortgage Association 6,846,387 Federal Home Loan Mortgage Corporation 1,995,880 Federal Farm Credit Bank 10,402,283 Federal Home Loan Bank 129,318,945 Corporate Notes 44,181,366 Commercial Paper 171,565,900 Money Market Fund 35,212 Total Investments 731,084,479 Bank Deposits 195,894,177 Total Pooled Cash, Cash Equivalents and Investments $ 926,978,656 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, 2023, the unrestricted cash was $750.4 million. The total restricted cash was $176.6 million, of which $7.6 million relates to unspent bond and loan proceeds restricted for capital projects. Unspent proceeds by debt issue consisted of the following: Debt Issue Unspent Debt Proceeds 2009 Homeland Defense $ 1,531,901 2009 Streets & Sidewalks 24,523 2010B Marlins Garage Taxable 197,956 2017 Special Obligation Bond 2,956,433 2017 Citywide Radio Equipment Loan 1,228,285 2018C Streets & Sidewalks 1,668,967 Total $ 7,608,065 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. 64 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 The City's policy limits the maturity of an investment to a maximum of five years. As of September 30, 2023, the City had the following investments with the respective weighted average maturity in years. The respective weighted average maturities were based on the securities' maturity date. Weighted Average investment Type Fair Value Maturity in Years United States Treasury Notes $ 366,738,506 0.75 Federal National Mortgage Association 6,846,387 0.17 Federal Home Loan Mortgage Corporation 1,995,880 0.08 Federal Farm Credit Bank 10,402,283 1.10 Federal Horne Loan Bank 129,318,945 0.42 Corporate Notes 44,181,366 1.41 Commercial Paper 171,565,900 0.38 Money Market Fund 35,212 Less than 1 year Total $ 731,084,479 The City's portfolio of Corporate Notes securities includes callable securities. If a callable investment is purchased at a discount or premium, the maturity date is assumed to be the maturity date of the investment. As of September 30, 2023, the City owned callable securities with a fair value of $19.3 million. The portfolio's overall weighted average duration was 0.64 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. All ratings requirements set forth in the City's Investment Policy apply at time of purchase. The City was compliant throughout the fiscal year. The table that follows summarizes the investments by credit rating at September 30, 2023: Investment Type Federal Federal Home National Loan SAP United States Mortgage Federal Farm Mortgage Federal Home Corporate Commercial Money Rating Treasury Notes Association Credit Bank Corporation Loan Hank Notes Paper Market Fund Total AAAm 5 5 S $ 5 S S S 35,212 35,212 A-1 134,473, 340 74,840,550 77,757, 700 287, 071, 590 AAA 2,803,143 2,803,143 AA— 202,734,966 6,846,387 10,402,283 1,995,880 54,478,395 1,449,795 74,568,600 352,476,306 AA 1,744,218 1,744,218 AA- 2,865,673 2,865,673 A+ 3,474,790 3,474,790 A 15,772,287 15,772,287 A- 11,585,962 11,585,962 BBB+ 4,485,498 4,485,498 NR 29,530,200 19,239,600 48,769,800 $ 366,738,506 S 6846,387 $ 10402283 $ 1 995 880 S 129318945 $ 44181 366 $ 171,565,900 5 35212 S 731,084479 65 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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 riskas previously disclosed in the notes. As of September 30, 2023, the following issuers represent 5 percent or more of the City's investment portfolio: Issuer Percentage Federal Home Loan Bank 17% United States Treasury Notes 50% 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 instrument 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, 2023: Fair Value Measurements Significant Other Observable inputs Investments by Level: Balance Level2 Debt Securities: United States Treasury Notes $ 366,738,506 $ 366,738,506 FederalNationalMortgage Association 6,846,387 6,846,387 Federal Farm Credit Bank 10,402,283 10,402,283 FederalHome Loan Mortgage Corporation 1,995,880 1,995,880 Federal Home Loan Bank 129,318,945 129,318,945 Corporate Notes 44,181,366 44,181,366 Commercial Paper 171,565,900 171,565,900 Total Investments by fair value level 731,049,267 $ 731,049,267 Measured at Amortized Cost: Money Market Fund 35,212 Total Investments $ 731,084,479 66 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 ElectedOfcer's Retirement Trust (EORT) The EORT Trust follows the City's investment policy. At September 30, 2023, the investments of EORT are as follows: Investment Type Fair Value United States Treasuries Notes $ 6,775,781 Money Market Fund 1,389,520 Total $ 8,165,301 The EORT has the following asset allocation as of September 30, 2023: AssetClass Target Allocation U.S Fixed Income 83% Money Market Fund* 17% 100% *These are cash deposits that are invested in a sweep account by the bank. 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. At September 30, 2023, EORT had the following investments with the respective weighted average maturity in years. The respective weighted average maturities were based on the securities call date, not the maturity date. Weighted Average Investment Type Maturity In Years United States Treasury Notes Money Market Funds Less than 1 year Less than 1 year EORT's investments at September 30, 2023, were in compliance with its investment policy at the time of purchase. 67 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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, 2023, all of the Plan's investments were held in United States Treasury Notes and 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 may be invested in prime commercial paper with a maximum of 5 percent with any one issuer. A maximum of 10 percent of the portfolio may be invested in banker's acceptances with a maximum of 5 percent with any one issuer. At September 30, 2023, the EORT did not have any investment with individual issuers greater than 5 percent, except for investments with the U.S. government. Fair Value Measurements —The EORT categorizes its investments within the fair value hierarchy established by GASB 72 as previously discussed in the footnotes. Debt Securities consist primarily of U.S. Treasury Notes. These securities can typically be valued using the close or last traded price on specific date (quoted prices in active markets). Investments in money market funds are measured at amortized cost. The following table summarizes the values of the EORT's investments in accordance with GASB 72 fair value hierarchy levels as of September 30, 2023: Investments by level: Fair Value Debt Securities: United States Tre a s ury Note s $ 6,775,781 Total Investments by fair value level 6,775,781 Measured at Amortized Cost: Money Market Fund 1,389,520 Total Investments $ 8,165,301 Fair Value Measurements Using Significant Other Observable Inputs (Level2) $ 6,775,781 $ 6,775,78 68 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 City of Miami Firefighters and Police Officers RetirementTrust(FIPO) and General Employees and S anitation Employees Retirement Trus t (GESE Trus t). The FPO and GESE Plans each issue stand-alone financial statements. Investment disclosures relatin 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 plans 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/ 69 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 NOTE 3. — ACCOUNTS RECEIVABLE, LEASES RECEIVABLE AND DUE FROM OTHER GOVERNMENTS Receivables at year-end for the City in individual major and non -major funds in the aggregate, including the applicable allowance foruncollectible accounts are as follows: Other Capital Emergency Non -Major Receivables General Projects Services Funds Total Accounts $ 59,210,202 $ 2,059,676 $ - $ 5,931,336 $ 67,201,214 Property Tax 6,134,881 277,189 6,412,070 Due From Other Governments 8,435,873 7,584,148 326,598 12,356,323 28,702,942 Loans Receivable - - 13,823,713 13,823,713 Gross Receivables 73,780,956 9,643,824 326,598 32,388,561 116,139,939 Less: Allowance for Uncollectibles (27,571,427) (2,058,049) (15,084,022) (44,713,498) Net Total Receivables $ 46,209,529 $ 7,585,775 $ 326,598 $ 17,304,539 $ 71,426,441 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 then outstanding principal amount of $15.6 million. The refinancing under the new note remained in accordance with the pro-rata payment obligations under a continuing agreement for the Parrot Jungle 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, regardinggteralia, (1) the borrowing by Jungle Island of the Parrot Jungle Project HUD Section 108 Loan proceeds from the County and the City, (2) the use 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 has 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. 70 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 2.Regular Rent Payments:Beginning April 1, 2013, Jungle Island is required to pay the rent based upon a "Gross Revenues"monthly calculation. 3.Deferred Rent Payments:Paymentsdue 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. All amounts due from Jungle Island at year end are fully reserved since collection is not certain. Single -Family Homeowners hip 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. Ifthe 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, at September 30, 2023, are as follows: Program Loans Outstanding Amount CDBG 47 loans $ 1,855,078 HOME 544 loans 24,526,389 SHIP 300 loans 15,719,087 Other 66 loans 2,809,934 Total 957 loans $ 44,910,488 Multi -Family Rental Loans Multi -family rental loan programs are funded by the Community Development Block Grant (CDBG) and HOME Investment Partnership Loan Program (HOME). At September 30, 2023, there are 123 projects aggregating to $107.1 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 they are no recognized in the City's financial statements. 71 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 Economic Development Commercial Loans At September 30, 2023, there are 5 loans aggregating to $4.9 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. Leases The City is a lessor for non -cancellable leases of buildings and other facilities owned by the City. The future minimum Lease receivable payments and interest for its leasing activities follows: Fiscal Year(s) Future Minimum Lease Receipts Principal Interest Total 2024 $ 3,167,795 $ 8,287,935 $ 11,455,730 2025 3,244,365 8,232,611 11,476,976 2026 3,289,449 8,179,094 11,468,543 2027 4,167,151 8,119,456 12,286,607 2028 6,239,704 7,971,482 14,211,186 2029-2033 30,069,192 37,289,137 67,358,329 2034-2038 34,308,807 32,791,084 67,099,891 2039-2043 39,412,639 27,541,536 66,954,175 2044-2048 38,450,836 21,864,142 60,314,978 2049-2053 40,959,614 15,956,097 56,915,711 2054-2058 44,036,804 9,613,606 53,650,410 2059-2063 36,493,002 2,970,695 39,463,697 2064-2068 5,905,617 264,882 6,170,499 2069-2073 10,109 10,389 20,498 2074-2078 11,431 9,068 20,499 2079-2083 12,925 7,573 20,498 2084-2088 14,615 5,883 20,498 2089-2093 16,526 3,973 20,499 2094-2098 18,686 1,812 20,498 2099-2103 5,040 82 5,122 $ 289,834,307 $ 189,120,537 $ 478,954,844 In fiscal year 2023, the City recognized $8,041,565 of lease revenue and $6,366,585 of interest revenue under the lease agreements. At year end, the City has $15.7 million of deferred inflows — deferred lease revenues related to lease payments received in advance for two leases. The deferred inflows — deferred lease revenues will be recognized as revenue over the life of the lease term. 72 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 NOTE 4. — PROPERTY TAXES Property taxes are assessed according to the value determined by the Miami -Dade County Property Appraiser on Januar?tbf each year and are due, with discounts of one to four percent allowed if paid prior to March It of the following calendar year. In accordance with Florida Statute 197.122, taxes become an enforceable lien on the assessed property 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 January 1, 2022, upon which the 2023 levy was based, was $84.5 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, 2023, was $7.55390 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 a1 September 30, 2023. Property taxes that are not considered "available" have been reported as deferrer inflows on the governmental funds balance sheet. 73 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 NOTE 5. — CAPITAL ASSETS The following is a summary of changes in capital assets during the year ended September 30, 2023: Primary Government Beginning Additions/ Retirements/ Ending Balance Transfers In Transfers Out Balance Governmental Activities: Capital assets, not being depreciated: Land $ 129,779,204 $ 6,584,715 $ (376,264) $ 135,987,655 Construction in progress 261,904,470 91,851,998 (48,906,655) 304,849,813 Total Capital Assets, riot being depreciated 391,683,674 98,436,713 (49,282,919) 440,837,468 Depreciable Assets: Buildings 360,211,931 888,145 361,100,076 Improvements 322,520,124 9,354,052 331,874,176 Machinery and equipment 317,916,476 11,585,922 (7,257,971) 322,244,427 Infrastructure 1,471,664,736 33.062,908 1,504.727,644 Total capital assets being depreciated 2,472,313,267 54,891,027 (7,257,971) 2,519,946,323 Less Accumulated Depreciation for: Buildings 174,931,027 7,556,725 182,487,752 Improvements 276,253,797 5,950,898 282,204,695 Machinery and Equipment 259,926,692 16,255,057 (7,212,293) 268,969,456 Infrastructure 1,042,875,619 32,292,430 1,075,168,049 Total accumulated depreciation 1,753,987,135 62,055,110 (7,212,293) 1,808,829,952 Total capital assets being depreciated, net 718,326,132 (7,164,083) (45,678) 71 1,116,371 Governmental activities capital assets, net $ 1,110,009,806 $ 91,272,630 $ (49,328,597) $ 1,151,953,839 The City has right of use assets under lease and SBITA in the amount of $15.91 million with accumulated amortization of $2.51 million at September 30, 2023. Balance 10/1/2022 as Additions Reductions restated* Right to use asset Lease and SBITA asset Less accumulated amortization Total right to use asset (net of accumulated amortization) Balance 9/30/2023 $ 11,134,215 $ 4,773,913 $ $ 15,908,128 43,259 2,470,992 - 2,514,251 $ 11,090,956 $ 2,302,921 $ $ 13,393,877 The leased and SBITA assets have net book values of $2.2 million and $11.2 million, respectively, at Year end. *Beginning balances were restated with the implementation of GASB 96, SBITAS. 74 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 Depreciation and amortization 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 and amortization expense Construction Commitments Depreciation Expenses Lease and SBITA Amortization 35,187,619 376,137 153,645 1,273,916 6,510,181 10,538,705 3,215,268 4,799,639 $ 2,427,732 43,260 $ 62,055,110 $ 2,470,992 As of September 30, 2023, the City had various construction projects in progress that were not completed with remaining balances that totaled approximately $67.5 million. Funding of these projects will be made primarily from proceeds of the bond issues, loans, future tax revenues and grants. Discretely Presented Component Units Capital Assets The following is a summary of changes in capital assets of the City's discretely component units during the year ended September 30, 2023: A summary of the changes in capital assets for DOSP is as follows: Capital assests, not being depreciated: Land Construction in progress Total capital assets, not being depreciated Capital assets being depreciated Building and structures Leasehold improvements Furniture and fixtures Equipment Right to use leased vehicles Total capital assests being depreciated Less accumulated depreciation for: Building and structures Leasehold improvements Furniture and fixtures Equipment Right to use leased vehicles Total accumulated depreciation Total capital assets being depreciated, net Beginning Balance Additions/ Retirements/ Transfers In Transfers Out $ 5,937,211 $ 662,707 2,889,095 Ending Balance $ - $ 5,937,211 (410,409) 3,141,393 6,599,918 2,889,095 (410,409) 9,078,604 104,035,193 11,410,41 l 920,661 8,227,840 129,888 (2,726,402) 101,308,791 358,467 11,768,878 76,706 997,367 162,884 (19,809) 8,370,915 678,514 808,402 124,723,993 38,641,197 9,928,352 679,911 6,387,891 2,165 1,276,571 2,716,263 273,336 59,511 794,143 78,324 (2,746,211) (2,606,759) (19,809) 123,254,353 38,750,701 10,201,688 739,422 7,162,225 80,489 55,639,5 16 69,084,477 3,921,5 77 (2,645,006) (2,626,568) (119,643) 56,934,525 66,319,82E DOSP capital assests, net $ 75,684,395 $ 244,089 $ (530,052) $ 75,398,432 75 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 A summary of changes in capital assets for CIP is as follows: Capital assets being depreciated: Furniture and equipment Less accumulated depreciation for: Furniture and equipment CIP capital assests, net Beginning Balance Additions) Retirements/ Transfers In Transfers Out Ending Balance 22,972 $ 20,299 - $ 2,673 (2,965) $ 20,007 (2,965) 20,007 2,673 $ (2,673) $ A summary of the changes in capital assets for DDA is as follows: Beginning Balance Additions/ Retirements( Transfers In Transfers Out Ending Balance Capital assets being depreciated: Furniture and equipment $ 781,585 $ Less accumulated depreciation for: Furniture and equipment 691,515 DDA capital assests, net 90,070 $ 13,295 $ (14,036) $ 780.844 17,586 (2,809) (4,291) $ (11,227) $ 706,292 74,552 A summary of changes in capital assets for BFP is as follows: Capital assets, not being depreciated: Land Construction in Progress 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 $ - $ 42,400 71,000 558,529 71,000 $ 516,129 113,400 629,529 2,595,374 9,850,911 950,480 13.396.765 2,706,993 225,796 2.932,789 2,595,374 12,557,904 1.176,276 16,329,554 1,810,342 5,369,666 772,268 7,952,276 5,444,489 52,758 369,661 47,131 469,550 2,463,239 $ 6,003,018 $ 2,534,239 $ 1,863,100 5,739,327 819,399 8,421,826 - 7,907,728 - $ 8,537,257 76 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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 $ 870,691 $ 47,651 $ $ 918,342 Less accumulated depreciation for: Furniture and equipment 444,372 93,403 - 537,775 CGBID capital assests, net $ 426,319 $ (45,752) $ - $ 380,567 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 $ 328,709 $ 2,467 S 159,468 63,908 $ 169,241 S (61,441) S $ 331,176 223,376 107,800 Summary of the discretely presented component units capital assets at September 30, 2023 are a! follows: DOSP DDA BFP CGBID WBID Total Capital Assets: Non -depreciable $ 9,078,604 $ $ - $ 629,529 $ - $ - $ 9,708,133 Depreciable, net 66,319,828 74,552 7,907,728 380,567 107,800 74,790,475 Total $ 75,398,432 $ $ 74,552 $ 8,537,257 $ 380,567 $ 107,800 $ 84,498,608 Depreciation expenses were charged to the discretely presented component units as follows: Entity Depreciation Expense DOSP $ 3,921,577 CIP 2,673 DDA 17,586 BFP 469,550 CGBID 93,403 WBID 63,908 Total depreciation expense $ 4,568,697 77 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 NOTE 6. — ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities reported in the governmental funds balance sheet at SeptembE 30, 2023, consisted of the following: Non -Major Other Capital Emergency Governmental General Projects Services Funds Accounts Payables $12,472,871 Retainage 44,386 Salaries and Benefits 14,515,445 Accounts Payable and Accrued Liabilities Other Liabilities Total 27,032,702 533,688 $10,462,964 4,308,016 $756,554 108,151 $22,551,612 3,733,011 256,642 Total $46,244,001 8,193,564 14,772,087 14,770,980 864,705 26,541,265 69,209,652 4,224 537,912 $ 27,566,390 $ 14,770,980 $ 864,705 $ 26,545,489 $ 69,747,564 NOTE 7. — INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS The balances reflected as due from/due to other funds reported as of September 30, 2023, are as follows: 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. Receivable Fund Payable Fund Amount General Fund Non -Major Governmental Funds S 8,711,004 Advances From/to Other funds Receivable Fund Payable Fund Total $ 8,711,004 Amount General Fund General Fund Non Major Fund - General Obligation Bonds Projects Non Major Fund -Special Obligation Bonds Projects Total $ 46,830,573 $ 42,343,463 4,487,110 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 ai therefore have been reported as advances. 78 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 The following is a summary ofinterfund transfers reported for the fiscal year ended September 30, 2023: Transfer In Non -Major Other Capital Emergency Governmental Transfer Out General Projects Services Funds Total General Fund S $ 52,834,109 $ 1,006 $111,145,349 $163,980,464 Other Capital Projects 88 - 3,700,876 3,700,964 Emergency Services 844,956 844,956 Nonmajor Governmental Funds 20,748,123 15,545,459 - 20,149,718 56,443,300 Total $ 21,593,167 $ 68,379,568 $ I,006 $ 134,995,943 $ 224,969,684 Transfers are used to (a) move revenues from the fund that statute or budget requires to collect them t the fund that statute or budget requires to expend them, (b) move receipts restricted for debt service frog 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 $164.0 million. This total was comprised of transfers of $111.2 million to Non -Major Governmental funds and $52.8 million to Other Capital Projects funds. The $52.8 million transferred to Other Capital Projects were allocated to various capital improvement projects as follows: $1.8 million of Stormwater Utility Fees collected from Miami -Dade County and an additional $1.4 million were transferred for stormwater related capital improvements, $5.0 million contribution for new City Administration building, $4.5 million for Marine Stadium Welcome Center and Museum Complex Financing, $3.2 million of Parking Surcharge fees collected were transferred to capital projects such as Flagler Street Beautification. $7.3 million contribution for Police vehicle replacement and $2.9 million for city-wide fleet and vehicle acquisitions, $6.4 million for various city-wide capital improvement projects such as building recertifications and repairs, $1.3 million for city-wide marina repairs, $2.4 million for Parks environmental control and improvements, $14.3 million to IT department for Oracle Cloud Startup and Enterprise Permitting Solution, $1.5 million for capital projects for other departments such as Police, and Real Estate and Asset Management and $0.8 million of local option go tax was transferred for various capital improvements. The $111.2 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: $46 million transferred to establish the Miami For Everyone program, $15.2 million to fund Transportation and Transit capital projects, $10.9 million to fund city-wide trolley operations, $7.8 million transferred to fund city-wide festivals, special events, and Anti -Poverty Initiative programs. $3.7 million to Police Special Revenue fund as grant match and to cover budget deficits for the E-911 Fund and $1.1 million Cost Allocation contribution to Fire Rescue Special Revenue and UASI fund. $8.3 million from the Public Service tax proceeds was allocated to various SOB funds, $2.0 million is General Fund contribution to applicable SOB debt, $5.1 million from Parking Surcharge, State Shared Revenue and Local Option Fuel tax to Streets' bond debt service, $9. million transferred for vehicle financing debt service payments and $1.9 million allocated to Citywide Radio Communication system. Payments for debt service are an allowable use of these revenue sources. 79 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 Also included in this fiscal year's transfers are $56.4 million from Non -Major Governmental funds. This total was comprised of $20.7 million to the General fund, $15.5 million to Other Capital Projects and $20.2 million to Non -Major Governmental funds. The $20.7 million to the General fund from Non -Major Governmental fund consists primarily of $12.5 million of Tax Increment Revenues surplus withheld from Midtown Miami CRA, $6.0 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. An additional $1.4 million was transferred from Departmental Improvement Initiative Special Revenue Fund to cover Police department services. The $15.5 million to Other Capital Projects includes: $4.0 million from OMNI CRA for improvements at Museum Park, $3.5 million to Transit and Transportation, $2.0 million for garage repairs at Marlins Garage, $1.2 million from Lane Closure Fund to various capital projects, $4.5 million from Planning Tree Trust Fund contributions to city-wide capital projects and $0.3 million contribution from Departmental Improvement Initiative to various parks and public facilities projects. The most relevant transactions within the $20.2 million transferred to 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, $5.5 million from the Transportation and Transit Special Revenue fund for Streets Bond debt service payments, $3.0 million from Transportation Capital Projects to Transit Special Revenue to cover trolley expenditures, $0.3 million from CRA's for other programs and $4.1 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. Included in this fiscal year's transfers are $3.7 million from Other Capital Projects fund to Non -Major governmental funds. The transfer was from Mass Transit Capital Fund to Special Revenue Transportation and Transit Special Revenue Fund to provide funding for various city-wide trolley routes. Finally, there was a $0.8 million transfer from Emergency Services Fund to the General Fund for eligible Coronavirus expenditures that were reimbursed. 80 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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, 2023: Primary Government General Obligation Bonds - Direct Placements Special Obligation Bonds - Direct Placements Loans - Direct Payments Special Obligation Bonds Bond Premium (Discounts) Total Bonds and Loans Other Liabilities: Compensated Absences Claims Payable and other liabilities Other Post Empioyement Benefits Net Pension Liability Arbitrage Rebate Liability Lease and SBITA Liability Total Other Liabilities Total Governmental Activities Long -Term Liabilities Beginning * Balance $ 71,280,000 234,200,040 44,057,648 130,305,000 479,842,688 4.909,844 484.752.532 93,646,983 226,121,242 777,314,329 1,301,418,710 11,093,098 2,409,594,362 $ 2,894,346,894 Additions Reduction $ (8,255,000) 26,460,000 (40,545,971) 7,432,552 (12,224,827) (9,745,000) 33,892,552 (70,770,798) (702,176) 33,892,552 (71,472,974) 24,689,926 (19,401,901) 106,917,610 (91,418,242) 68,711,182 - 163,676,388 - 23,610 - 4,507,536 (1,975,456) 368,526,252 (112,795,599) $ 402,418,804 $ (184,268,573) Ending Balance $ 63,025,000 220,114,069 39,265,373 120,560,000 442,964,442 4,207,668 447.172,1 1 L1 Due within One Year $ 11,225,0001 17,517,6701 10,052,065 7,170,0001 45,964,735 45,964.735 11,011.161 50,186,915 1,998,26& 63,196,344 $ 3,112,497, 125 $ 109,I61,079 98,935,008 241,620,610 846,025,511 1,465,095,098 23,610 13,625,178 2,665,325,015 *Beginning balances were restated with the implementation of GASB 96, SBITAs. Claims payables, compensated absences, net pension liability, lease and SBITA liability, and otherpos employment benefits are generally liquidated by the General Fund. Claims payable balance of $241.6 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 $37.2 million for potential legal claims as discussed in Note 12. Claims payables of $202.8 million reported in connection with the City's self-insurance program is discussed in Note 9. 81 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 Bonds, Loans and Leases Outstanding The following presents the City's bonds and loans outstanding at September 30, 2023: 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: Special obligation Refunding Bonds Series 2018A Taxable Special Obligation Refunding Bonds Series 20I8B Taxable Special Obligation Revenue Bonds Series 2018C CRA SEOPW Tax Increment Revenue Bonds Series 2014A-1 Total Special Obligation and Revenue Bonds 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 Refunding Note, Tax -Exempt Series 2023 Port Tunnel 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 2020 #1 Vehicle Replacement Program Series 2020 #2 Vehicle Replacement Program Series 2021 P25 Citywide Radio Equip. Loan State Revolving Fund Loan Total Other Direct Placements Total Bonds and Loans Purpose of Maturity Amount Outstanding Interest Rate Issue Date Issued Balance Range Refunding 1/1/2028 57,240,000 41,150,000 2.640% Refunding 1/1/2029 114,380,000 21,875,000 2.170% 171,620,000 63,025,000 Refunding Refunding Refunding Redevelopment Park Improvements Refunding Refunding Refunding Refunding Refunding/Port Tunnel Refunding FP&L Underground Redevelopment Redevelopment Redevelopment Bank Loan Bank Loan Bank Loan Radio System Loan Wagner Creek 1/1/2037 1/1/2039 1/1/2039 3/1/2030 57,405,000 42,620,000 7,455,000 50,000,000 48,695,000 38,255,000 6,435,000 27. 175,000 157,480,000 120,560,000 5.000% 3.925%4.808% 4.342%-4.808% 5.000% 1/1/2032 27,160,000 17,535,000 2.560% 7/1/2026 18,049,380 3,234,068 3.280% 2/1/2031 59,310,000 45,685,000 2.780% 12/1/2025 7,180,000 5,040,000 3.150% 7/1/2027 16,555,000 10,050,000 3.750% 3/1/2030 26,460,000 26,460,000 1.720% 1/1/2039 75,540,000 74,850,000 4.200% 1/1/2041 24,435,000 22,515,000 2.4600% 9/1/2029 10,000,000 5,630,000 3.250% 9/1/2029 15,000,000 9,115,000 4.490% N/A 1,708,864 1,708,864 0.000% 1/1/2025 9,256,279 3,755,119 1.1670% 1/1/2025 16,318,888 6,605,928 1.8076%© 1/1/2026 9,766,531 5,899,209 1.5750% 7/15/2024 12,100,000 1,833,159 2.0590% N/A 21,177,751 19,463,095 0.000% 350,017,693 259,379,442 $ 679,117,693 $ 442,964,442 82 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 Annual Debt Service Requirements to Maturity At September 30, 2023, the annual debt service requirements for all bonds and loans debt is listed below: Year Ended September 30, 2024 2025 2026 2027 2028 2029-2033 2034-2038 2039-2043 Total Bonds and Notes for Direct Placement Principal Interest $ 38,794,734 $ 8,663,715 37,847,506 7,738,874 36,764,555 6,769,133 32,418,104 5,830,335 32,603,104 4,989,876 80,795,520 16,021,369 53,255,520 6,593,955 9,925,399 226,824 $ 322,404,442 $ 56,834,081 Long -Term Debt Issued Special Obligation, Revenue Bonds, Loans and Leases Principal Interest $ 7,170,000 7,525,000 7,890,000 8,270,000 8,680,000 36,890,000 35,590,000 8,545,000 $ 5,700,234 5,347,044 4,974,739 4,582,844 4,170,595 14,744,303 6,605,413 205,421 $ 120,560,000 $ 46,330,593 Total over the life of the Principal Interest $ 45,964,734 45,372,506 44,654,555 40,688,104 41,283,104 117,685,520 88,845,520 18,470,399 $ 14,363,949 13,085,918 11,743,872 10,413,179 9,160,471 30,765,672 13,199,368 432,245 $ 442,964,442 $ 103,164,674 On March 1, 2023, the City closed a Special Obligation Non- Ad Valorem Revenue Refunding Note transaction in the principal amount of $26,460,000, the proceeds of which were used to prepay, on a current basis, all of the City's outstanding Special Obligation Non -Ad Valorem Revenue Refunding Note, Taxable Series 2020 (Port of Miami Tunnel Project) (the `Refunding Loan'). The Refunding note is amortized over approximately 7 years with a final maturity date of March 1, 2030. Interest is payable semi-annually at a fixed taxable rate of 1.72% per annum. The refunding was entered into to lower the City's interest rate from 2.11% to the new rate of 1.72%, and no additional debt was obtained by the City as a result of the refunding transaction. Therefore, the refunding did not result in an accounting gain/losE but resulted in net present value saving to the City of $401,577. In July of 2023, the City of Miami increased its loan amount by $7,432,552 from the State Revolving Loan program for Wagner Creek at a 0% interest rate. Terms Specified in Debt Agreements The City's total outstanding bonds related to public offerings are $ 120,560,000. 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 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. 83 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 o CRA SEOPW Tax Increment Revenue Bonds Series 2014A-1 The City's total outstanding notes from direct placements related to governmental activities are $322,404,442. They are listed below with their events of default information. o General Obligation Refunding Bond Series 2015 - An event ofdefault is a failure to make a payment ofprincipal, premium ifany, or interest due on the bond. In the event ofdefault, 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 2017 - An event ofdefault is a failure to make a payment ofprincipal or interest due on the bond. In the event ofdefault, 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 of2.17% 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 ofdefault is a failure to make a payment ofprincipal or interest due on the note within five (5) days after the due date. Upon the occurrence and continuation of an event ofdefault 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, Tax -Exempt Series 2023 (Port of Miami Tunnel Project) - An event ofdefault is a failure to make a payment ofprincipal or interest due on the bond. Upon the occurrence and continuation of an event ofdefault, interest on the Note shall automatically bear interest at the default rate of the lesser of the fxed rate plus 4% per annum or the maximum rate permitted by law of 18% per annum simple interest (Florida Statutes 687.02(01). o Special Obligation Refunding Bonds Series 2014 - An event ofdefault is a failure to make a payment ofprincipal or interest due on the bonds. In the event ofdefault, 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 (2020-2021) - An event ofdefault is a failure to pay any rental payment for 15days after such payment is due. In the event of default, Santander Bank (the Bank) may declare all 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 2017 - An event ofdefault is a failure to pay any payment of principal or interest on the bond within 3 days of the date due. In the event ofdefault, the interest rate shall immediately and automatically become the default rate of 7% per annum. 84 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 o Special Obligation Refunding Notes Series 2017 - An event of default is a failure to make payment ofprincipal 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'1 f 20, 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&T, 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 & 2QAkr?Bvent 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 P25 Citywide Radio Equipment Loan - An event of default is a failure to pay, within 10 days following the due date thereof, any 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 loan, but solely with respect to legally available non -ad valorem revenues budgeted and appropriated for any loan. Also, Signature Public Funding shall have the right to resume interest thereof at the default rate of the lesser of 12% per annum, or the maximum rate permitted by law of 18% per annum simple interest (Florida Statutes 687.02(1)). o State Revolving Loan Wagner Cree n-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 Department 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 Depaitiuent 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. o Gran Central Corporation Loan (1998 N/A)An event of default is a failure to make a payment on the scheduled payment date. In the event of any such default, the defaulted amount will become payable to the Registered Owner at the close of business on a special record date for the payment of such defaulted amount. 85 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 Debt Autho riz e d but Unis s ue d As of September 30, 2023, the City has authorized but not issued the following debt: 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 ofintentto 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 improvement portions of the Miami Central Station Project pursuant to the interlocal agency agreement among the City, the SEOPW CRA and the South Florida Regional Transportation Authority. On December 12, 2018, the City Commission approved $58 million of the $400 million Miami Forever Bond voted by residents in November 2017. The $58 million will fund the first set of Miami Forever Bond projects. The City of Miami will use the proceeds as follows: $10.3 million toward fighting sea level rise, including a redesign of Brickell Bay Drive and the installation of 50 new one-way valves; $15 million for new affordable housing projects and a single-family home rehabilitation program; $420,000 for upgrades to Fire Station No. 10, $7.6 million to improve 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 tax- exempt and taxable special obligation bonds or any other financing mechanism advantageous to the City in a total maximum aggregate principal amount not to exceed $150 million including costs of issuance. The proceeds are for the purposes of financing the costs of the acquisition of real property at 230 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 and tax-exempt General Obligation Bonds at an initial expected not to exceed total maximum principal amount of $40 million as Tranche 2 of the $400 million Miami Forever Bond voted by residents in November 2017. 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. On December 9, 2021, the City 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 $25,000,000 for Tranche 2 of the $400 million Miami Forever Bonds to fund Flood Mitigation projects. 86 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 On October 13, 2022, the City Commission approved resolution #22-00398 for a declaration of intent to issue tax-exempt and/or taxable special obligation bonds for $12,175,000 to reimburse the City for funds advanced by the City for certain expenses incurred with respect to capital projects to be undertaken by th, City to reduce flooding risks and improve parks, cultural facilities, streets, and infrastructure within the City's limits. Primarily the West End Park and pools enhancements, On October 27, 2022, the City Commission approved resolution #22-0422 for a declaration of intent to issue tax-exempt and/or taxable special obligation bonds for $175,000 to reimburse the City for funds advanced by the City for certain expenses incurred with respect to capital projects to be undertaken by th, City to improve parks, cultural facilities, and infrastructure within the City's limits. Primarily the Bay of Pigs Memorial Park Improvements. On November 17, 2022 the City Commission approved resolution #22-0466 for a declaration of intent to issue tax-exempt and/or taxable special obligation bonds for $4,550,000 to reimburse the City for funds advanced by the City for certain expenses incurred with respect to capital projects to be undertaken by th, City to minimize flooding frequency, severity, duration, and impacts; protect critical infrastructure and high -use areas; and reduce financial and economic vulnerability within the City's limits. On April 13, 2023, the City Commission approved resolution #23-0177 for a declaration of intent to issue both taxable and tax-exempt General Obligation Bonds in the expected total maximum principal amount of $1,416,880. This was done to reimburse the City for eligible expenses incurred with respect to certain capital improvement projects at Grape land Heights Park. On May 25, 2023, the City Commission approved resolution #23-0243 for a declaration of intent to issue both taxable and tax-exempt General Obligation Bonds in the expected total maximum principal amount of $2,833,760. This was done to reimburse the City for eligible expenses incurred with respect to the Bayfront Park Fountain Project. On September 14, 2023, the City Commission approved resolution #23-0399 for a declaration of intent to issue both taxable and tax-exempt General Obligation Bonds in the expected total maximum principal amount of $91,179,000. This was done to reimburse the City for eligible expenses incurred with respect to certain capital improvement projects pertaining to Sea Level Rise and Flood Prevention. On September 14, 2023, the City Commission approved resolution #23-0411 for a declaration of intent to issue both taxable and tax-exempt Special Obligation Bonds or any other financing mechanism advantageous to the City in the expected total maximum principal amount of$250,000,000. This was done to reimburse the City for eligible expenses incurred with respect to the development, construction, and equipping of a New City Administration Building and related parking facilities, and for certain other capital improvement projects related to the location at approximately 1802 NW 37 Ave, Miami, Florida. This resolution updated resolution number 19-0256. On September 28, 2023, the City Commission approved resolution #23-0439 to issue one or more series of Special Obligation Non -Ad Valorem Revenue Bonds, in an aggregate principal amount not exceeding $285,000,000 for the New City Administration Center Project and the Oracle Project. 87 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 Equipment Financing Obligations The City has entered into agreements to finance the acquisition of police and fleet vehicles in the amount of $56,666,631. At year end the cost and accumulated depreciation of the assets acquired were $65.3 million and $43.5 million, respectively. The City entered into an agreement to finance the acquisition of800 Megahertz ("MHZ") Digital Trunked Simulcast Network System ("System") as part of the ongoing efforts to upgrade and enhance two (2) way radio communications throughout the City, specifically for the Miami Police Department, Fire -Rescue Department, and General Services Administration Department in the amount of $12,100,000. Atfiscal year end, $10.8 million of assets were acquired to be prepared for its intended use; therefore, there is no depreciation to report. Additionally, at year end there was $1.2 million of loan proceeds being held in escrow. The following is a schedule showing the payments due under the various financing agreements by year! as of September 30, 2023: Police &FleetVehicles Network System Santander P25 Loan Year Ending September 30, Principal Interest Principal Interest Total 2024 $ 7,075,801 $ 256,144 $ 1,833,159 $ 28,357 $ 9,193,461 2025 7,187,243 144,702 - - 7,331,945 2026 1,997,212 31,456 - - 2,028,668 Total $ 16,260,256 $ 432,302 $ 1,833,159 $ 28,357 $ 18,554,074 The following is a schedule showing the payments due under various lease and SBITA agreements: Principal and Interest Requirements for Subscription and Lease Liability Year Ending September 30, Principal Interest Total 2024 $ 1,998,268 $ 393,521 $ 2,391,78c 2025 1,858,122 334,746 2,192,868 2026 1,870,616 281,508 2,152,124 2027 1,857,150 226,352 2,083,502 2028 1,466,589 171,682 1,638,271 2029-2031 4,574,433 267,458 4,841,891 $ 13,625,178 $ 1,675,267 $ 15,300,445 Synopsis of Bond Covenants Debt service for general obligation bonds is provided for by a tax levy on non-exempt property value. The total general obligation debt outstanding is limited by the City Charter to 15 percent of the assessed not exempt property value. At September 30, 2023, the statutory debt limitation of assessed non-exemp property value for the City amounted to $12.42 billion providing a debt margin of $12.38 billion after 88 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 consideration of $63.03 million of general obligation bonds outstanding at September 30, 2023 and adjusted for the fund balance of $14.6 million in the related Debt Service Fund Special Obligation debt of the City for which no revenue is pledged is collateralized by covenants to budget and appropriate non -ad -valorem revenues, and tax increment revenue in accordance with the bond indentures. The bond indentures require that sufficient funds be available in the sinking fund to meet the annual debt service requirements. At September 30, 2023, the City had approximately $4. i million available in the sinking fund to meet this requirement. Principal and interest to be paid in subsequent years totals $ 224.3 million on all other Special Obligation debt of the City. Pledged Revenue The City pledged future revenue proceeds of (i) 80 percent Transportation Taxes, (ii) 100 percent new Local Option Gas Taxes, and (iii) 20 percent ofthe City's Parking Surcharge*to repay $57.4 million in Special Obligation Revenue Bonds, Series 2018A and $42.6 million special obligation revenue bonds, Series 2018B, and $7.4 million taxable special obligation revenue bonds, Series 2018C. The proceeds from the bonds were used for the improvement of streets, sidewalks and drainage within the City. Those bonds are payable solely from the pledged revenues listed above through January 1, 2039. Principal and Interest paid for the current year were $ 3.77 and $ 4.60 million, respectively. The current year pledged revenues were (i) $0 million* (ii) $7.45 million and (iii) $5.97 million, respectively for the 2018 A, B, and C Bonds. Principal and interest to be paid in subsequent years totals $67.70 million on the Series 2018Abonds, $57.71 million on the Series 2018B bonds, and $9.16 million on the Series 2018C bonds. On April 5, 2022, the City was notified that the Office of the Citizens' Independent Transportation Trust ( "OCITT') has begun withholding surtax payments to the City at the direction of the OCITT as a result of ongoing unresolved audit findings by the County's Auditing and Management Services Depailment ( "AMS'). The audit findings relate to the City's use of surtax moneys and the determination by AMS that certain expenditures of the City were not eligible for surtax funding. OCITT will withhold surtax payments to the City until the unresolved AMS audit findings are addressed to the satisfaction of Citizens' Independent Transportation Trust. The City is in the process of responding to this notification, however, the City is uncertain at this time as to whether its continued objections to the AMS audit findings willbe resolved. The Transportation Surtax represents a significant portion ofthe Designated Revenues for the Series 2018 Bonds. Suspension of the payments to the City may have a material adven effect on the debt service coverage but is not expected to have a material adverse effect on the City's ability to repay the Series 2018 Bonds. The City further pledged future revenue proceeds of (i) 100 percent Convention Development Taxes and (ii) Parking Revenues in connection with Major League Baseball Home Games at the Miami Marlins Baseball Stadium, along with related parking surcharge revenues*to repay $75.54 million Taxable Special 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 through the year 2039. Principal and interest to be paid in subsequent years totals $108.98 million on the Series 2019 bonds and $11.03 million on the Series 2018 bonds. The total pledge revenue collected during the year was approximately $10.26 million and total principal and interest payments during the year were $2.05 million and $3.60 million, respectively *Refer to NOTE 12. — COMMITMENTS AND CONTINGENCIES, for more information related to the City's Parking Surcharge litigation. 89 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 Arbitrage Under U.S. Treasury Depailinent regulations, all governmental tax-exempt debt issued after August 31 1986, is subject to arbitrage rebate requirements. The requirements stipulate, in general, that the actu, earnings from the investment of tax-exempt bond proceeds, which exceed related interest earnings if suc investments were invested at a rate equal to the yield of the bonds, must be remitted to the Federa government on every fifth anniversary of each bond issuance. The City has evaluated each series ofta exempt obligations issued by the City. The City has recognized an arbitrage liability of $23,611. 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 condui 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 2023. 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, 2023, the HFA conduit debt activity and outstanding balance totaled $37.78 million. Debt Issue Series 2017 Beginning Balance Principal Payment Outstanding Balance 38,870,000 5 1,090,000 $ 37,780,000 The scheduled debt service payments were made by Miami Jewish Horne and the payments are current. Discretely Presented Co mpo ne nt Units Long -Term De bt Department of Off -Street Parking (DOSP) The changes in DOSP's long-term debtfor2023 are as follows (in thousands): Beginning Ending Due Within Balance Additions Reductions Balance One Year Bonds Payable $ 49,185 5 - $ 1,785 $ 47,400 $ 1,870 Premium (discount) 5,135 856 4,279 - Compensated absences 1,075 848 768 1,155 554 Net Pension Liability - 4,256 4,256 Other post -employment benefit liability (OPEB) 271 44 227 Loan from primary government 450 150 300 150 Lease Payable 128 679 58 749 143 $ 56,244 $ 5,783 $ 3,661 $ 58,366 $ 2,717 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 starter December 1, 2005. The outstanding balance as of September 30, 2023, is $0.3 million. 90 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 The following summarizes the debt service to maturity of outstanding DOSP debtat September 30, 2023: Year Ending Bonds Loan September 30, Principal Interest Total Principal 2024 $ 1,870,000 $ 2,055,650 $ 3,925,650 $ 150,000 2025 1,970,000 1,959,650 3,929,650 150,0001 2026 2,065,000 1,858,775 3,923,775 - 2027 2,170,000 1,752,900 3,922,900 - 2028 2,275,000 1,641,775 3,916,775 - 2029-2033 13,195,000 6,354,150 19,549,150 - 2034-2038 16,360,000 3,186,400 19,546,400 - 2039-2043 7,495,000 302,700 7,797,700 - Total S 47-400,000 5 19. I 11000 S 66 51.2 OM $ 300,000 Range of Rates 4.25%-5.66% 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 -insures retention limit of $2,000,000 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 $1,000,000 retention. The City carries an excess layer Buffer policy bringing the total self insured retention limit on the workers' compensation exposure to $1,000,000. In addition, the City also purchases dedicated commercial generl liability policies for the Grapeland Waterpark and the various marinas that it operates. These policies carry a $1 million limit per occurrence. The City's master property insurance program provides an insured All Other Perils (AOP) limit of $100 million. The City's total insured value on covered property is approximately $628 million. Included in this amount is $25 million for named windstorm and $30 million of wind, earthquake and flood coverage. With the exception of earthquakes, floods and named windstorms, the all -other -perils deductible is $100,000 per occurrence. In regard to the named windstorm, the deductible is five percent of the value o the affected location subject to a minimum of $250,000 for any one occurrence. The City also maintains a standalone property policy on the Marlins Stadium Parking Garages providing $25 million in total limits for flood and earthquake, and full TIV limits of $97 million on Wind and AOP perils. The Marlins Stadium Parking Garages have a $25,000 all other perils deductible, and a deductible of five percent of total insured values at time of loss, with a $100,000 minimum per location for named windstorm and flood perils. 91 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 The payment of losses within the self -insured retention level are made from the General Fund. Claims ari adjusted by a third -party administrator. Claims expenditures and liabilities are reported in the Statement ofNet 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 a 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. Th( City is currently contributing approximately eight 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. At September 30, 2023, the total estimated undiscounted liability is recorded in the government -wide financial statements. Changes in the claims and other litigation related liability amounts for 2023 and 2022 were as follows: Fiscal Year Ended September 30, 2023 2022 Beginning of Fiscal Year Liability $ 226,121,242 231,170,181 Current Year Claims and Changes in estimates $ 106,917,610 75,267,703 Claim Payments $ (91,418,242) (80,316,642) Balance at Fiscal Year End $ 241,620,610 226,121,242 Claims payable balance of $241.6 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 $31.2 million for potential legal claims as discussed in Note 12. Claims payables of $202.8 million reported in connection with the City's self-insurance program. Settled claims have not exceeded the City's aggregate excess coverage in force for the last three years. 92 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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 `Flans". 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 and Fire Department of the City. As of September 30, 2023, membership in the FIPO consisted of the following: Members Retirees and beneficiaries currently receiving benefits 2,236 Inactive plan members entitled but not yet receiving benefits 133 Active plan members- vested 831 Active plan members- non -vested 1,095 Total 4.295 Pension Benefits The City Code establishes the FIPO benefit terms and contribution requirements, and any amendments thereto would require approval by 3/5th of the City commission. Members may elect to retire after 10 or more years of creditable service upon attainment of normal retirement age. Normal retirement pursuant to Section 40-203 of the City code shall be determined as follows: Plan A - For members employed on September 30, 2010, who as of that date have attained age 50 witi ten or more years of creditable service or eligibility for rule of 64 retirement for police officer members, or eligibility for rule of 68 for firefighter members, the normal retirement age shall be 50 years of age with ten or more years of creditable service, or rule of 64 retirement for police officer members, or rule of 68 for firefighter members. 93 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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 40-351), multiplied by years of creditable service for the first 15 years of such creditable service, and 3 Y/2 percent of the member's average final compensation multiplied by years of creditable service exceeding 15 years, which shallbe paid in monthly installments. For members who retire under normal service retirement or Rule of 64 for Police Officers and Rule 68 for Firefighters the retirement allowance shall not exceed the lesser of 100% of the member's average final compensation. For members who were not vested as of September 30, 2010, the annual retiremen allowance shall not exceed $120,000. Early retirement, disability, death and other benefits are also provided. Cost of Living Adjustment Effective January 9, 1994, the FIPO Trust entered into an agreement with the City with regards to the funding methods, employee benefits, employee contributions and retiree cost of living adjustment ( "COLA'). Pursuant to the agreement, members no longer contribute to the original COLA account( "COLA I') and a new COLA account ("COLA If) was established. The agreement included the following: (a) the funding method was changed to an aggregate method; (b) all accounts were combined for investment purposes (membership and benefit, COLA I, and COLA II); (c) retirees receive additional COLA benefits; and (d) active members no longer contribute 2 percent of pretax earnings to fund the original retiree COLA I account. The COLA II account is funded annually by either a percentage of the excess investment returns from other than COLA I account assets or minimum Trust sponsor contribution. 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, 2023, approximately $7.8 million was funded by the City. Benefits payable from the COLA accounts are computed in accordance with an actuarially based formula as defined in Section 40.204 of the City Code. Deferred Retirement Option I c(DROP) Effective October 1, 2021, all members may participate in the Deferred Retirement Option Program (DROP). Members who are eligible for service retirement or Rule of 64 for Police Officers or Rule of 68 for Fire Fighters may elect to participation in either a Forward DROP or a Back DROP. Maximum participation in the Forward DROP for firefighters shall be 54 full months and for police officers shall be 84 full months. Once the maximum participation has been achieved, the participant must terminate employment. A member's creditable service, accrued benefit and compensation calculation shall be frozen. 94 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 Upon commencement of participation in the Forward DROP, the participant's contribution and the City's contribution to the Trust for that participant cease as the participant will not earn further creditable service for pension purposes. Effective January 1, 2013, a Back DROP benefit option was implemented. An eligible employee who elects the Back DROP option shall receive a monthly benefit payable on the employee's actual retirement date based on the benefit the employee would have received if the employee had severed employment and retired on an earlier date after attaining normal retirement eligibility. Employees are eligible to elect the Backdrop option after completing one year of creditable service following the normal retirement date. An employee can elect a Back DROP period of 1 to 7 full ye ars. 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, 2023, amounted to $175.: 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, 2023, amounted to $24.2 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, 2023, amounted to $617,556. 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 if hired prior to October 1, 2012). Firefighter members are also required to contribute 10 percent (9 percent if hired 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 FIPC and to provide FIPO with assets sufficient to meet the benefits to be paid to participants. Contributions to FIPO are authorized pursuant to Sections 40.196(a) and (b) of the City Code. Contributions to the FIPO COLA accounts are authorized pursuant to Section 40.204 of the City Code. The City's contributions to FIPO provide for non -investment expenses and normal costs. The yield on investments on FIPO serves to reduce/increase future contributions that would otherwise be required to provide for the defined level of benefits under the FIPO Trust. 95 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 The payroll for employees covered by FIPO for the year ended September 30, 2023, was approximately $187.9 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, 2023, the average active employee contribution rate was 10 percent of annual pay, and the City's average contribution rate was 57 percent of annual covered payroll. Employer contributions for the fiscal year 2023 totaled approximately $107.2 million. Net Pension Liability The components of the net pension liability for FIPO at September 30, 2023, are as follows: FIPO Total pension liability Plan fiduciary net position Net pension liability $ 2,650,238,384 (1,567,695,124) $ 1,082, 543.260 Plan fiduciary net position as a percentage of total pension liability 59.15% Actuarial Assumptions The total pension liability was based on an October 1, 2022 actuarial valuation rolled forward to the measurement date of September 30, 2023, using the following assumptions, applied to all periods included in the measurement: Actuarial Assumptions Measurement Date September 30, 2023 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 pension plan on investments investment expense including inflation. The actuarial assumptions used in the October 1, 2022 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 all healthy retirees. 96 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 Changes in Benefit Tel7M2d Actuarial Assumptions All members are now eligible for Forward DROP, thus the retirement rates previously exclusive for those eligible for Forward DROP only now apply to all members. All members are now assumed to enter Forward DROP upon eligibility, instead of entering Back DROP. The long-term expected rate of return on pension plan investments was determined in accordance with Actuarial Standard of Practice (ASOP) No. 2S70ection 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, 2023, are summarized in the following table: Asset Class Domestic Fixed Income Domestic Equity International Equity U.S. Fixed Income Real Estate Private Equity Long -Term Expected Real Rate of Return 2.80% 6.10%a 7.20% 2.10% 5.20% 7.10% Real rates of return are net of the long-term inflation assumption of 2.60% for 2023. Discount Rate The discount rate used to measure the total pension liability was 7.00 percent and did not change in comparison to 2022. 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 wa: applied to all periods of projected benefit payments to determine the total pension liability. 97 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 Changes in Net Pension Liability The following table shows the FIPO changes in net pension liability based on the actuarial information provided to the City at September 30, 2023: Balance at 10/01/2022 Changes for the year: Service Cost Interest Changes of benefit terms Differences between expected and actual experience Contributions - employer Contributions - member Net investment income Benefit payments, including refunds of member contributions Administrative expenses and other Net Changes Balances at 09/30/2023 FIFO Increase (Decrease) Total Pension Liability (a) $ 2,577,971,693 48,985,511 177,545,797 26,912,741 Plan Fiduciary Net Net Pension Position Liability (b) (a) - (b) $ 1,477,141,473 $ 1,100,830,220 107,166,543 16,887,735 149,770,178 (181,177,358) (181,177,358) - (2,093,447) 72,266,691 48,985,511 177,545,797 26,912,741 (107,166,543) (16,887,735) (149,770,178) 2,093,447 90,553,651 (18,286,960) $ 2,650,238,384 $ 1,567,695,124 $ 1,082,543,260 Sensitivity of'the Net Pension Liability to Changes in the Discount Rate The following table illustrates the impact of interest rate sensitivity on the FIPO net pension liability as of September 30, 2023: 1% Decrease (6.00%) Current Discount Rate 1% Increase (7.00%) (8.00%) Net Pension Liability $ 1,378,513,116 $ 1,082,543,260 $ 834,468,651 98 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 Pension Expense and Deferred Oua.rlInflows of Resources Related to Pension For the year ended September 30, 2023, the City recognized pension expense of $171.8 million. At September 30, 2023 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 76,980,706 $ 41,253,609 95,445,162 $ 36,952,579 213,679,477 $ 36,952,579 Amounts reported as deferred outflows of resources and deferred inflows of resources related to pension; will be recognized in pension expense as follows: Year ending September3V: 2024 $ 53,871,426 2025 43,718,597 2026 77,929,088 2027 (3,277,669) 2028 4,485,456 Thereafter $ 176,726,898 GENERAL EMPLOYEES AND SANITATION EMPLOYEES RET 1REMENT 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 ldfytlid5City 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/. 99 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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, 2022, membership in the GESE consisted ofthe following: Members Retirees and beneficiaries currently receiving benefits 1,889 Terminated members entitled to benefits but not yet receiving benefits 315 Active employees 1,942 Total 4.146 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). For members eligible for retirement on September 30, 2010, and members hired prior to October 1, 2010, who retire on or after September 30, 2020, retirement benefits are based on 3 percent of the average final compensation multiplied by all years of creditable service. For members hired after or on October 1, 2010, retirement benefits are based 2.25 percent (2.5% for members of the AFSCME Local 871) of average 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. 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, Assistant City Attorney, and persons employed in these positions on or after June 1, 2019, may elect to participate in either plan. Effective October 1, 2021, the following positions shall be eligible for participation in the Plan or the trust fund: City Manager, Deputy City Manager, Assistant City Managers, City Clerk, Assistant City Clerk, Department Directors, Assistant Directors and those employees identified by the City's administration as employed in the executive service of the City on or after October 1, 2021, may elect to participate in either plan. 100 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 For members who retire on or after October 1, 2018, for AFSCME 1907 bargaining unit and October 1, 2020, for AFSCME 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. The following applies to members of the AFSCME Local 1907 bargaining unit effective October 1, 2020, and to non -bargaining members effective October 1, 2021: For members who are eligible to retire or enter the DROP on October 1, 2012, member retirement allowances shall not exceed $120,000. For members who are not eligible to retire or enter the DROP as of October 1, 2012, member retirement allowances shall not exceed $100,000. Effective October 1, 2022, the maximum retirement benefit will reduce to $100,000. Maximum Lim itation Effective on or after October 1,2021, for members retiring or entering DROP from that date on, member retirement allowance shall not exceed the lesser of 100 percent of the member's average final compensation or an annual allowance of $120,000 as of retirement of DROP entry based on the normal form of benefit in effect on the date of retirement for members eligible to retire as of October 1, 2012. Effective October 1, 2022, for members retiring or entering DROP from that date on, member retirement allowance shall not exceed the lesser of 100 percent of the member's average final compensation or $100,000 as of retirement or DROP entry based on the normal form of benefit in effect on the date of retirement for members who were not eligible to retire as of October 1, 2012. However, any member who has an accrued benefit in excess of these annual allowance caps shall retain that benefit but not accrue any additional benefits after that date and other benefits as defined in City of Miami Ordinance No. 12111. Pension benefits are paid annually in monthly installments. Cost ofLiving Adjustmdi(COLA) Effective October 1, 1998, the GESE Trust was amended to provide for an increase in the COLA paid to retirees to 4 percent with a $400 annual maximum increase, provided the retiree's first anniversary of retirement has been reached. The amendment also provided for retirees electing the return of contribution option to receive a minimum COLA benefit of $27 per year and a maximum COLA benefit of $200 added to the previous COLA benefit, provided the retiree's first anniversary of retirement has been reached. Deferred Retirement Option Plc(i9ROP) The DROP is available to all GESE Trust members eligible for normal retirement. 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 receive the accumulated DROP account balance after withdrawing from the DROP. The DROP monies 101 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 can be rolled over into a separate tax -qualified plan such as an Individual Retirement Account (IRA) OR 457(b) government sponsored deferred compensation plan. DROP pension payment for the year ended September 30, 2023, amounted to $6.7 million. The DROP balance for the year ended September 30, 2023, amounted to $38.7 million and is recorded with the plan's investments on the statements of Fiduciary Net Position. Effective September 19, 2022, for all members of the GESE Trust, the maximum period of participation in the DROP shall be 84 months. The BACKDROP shall not replace the DROP program. 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/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 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 as little as one year and as long as seven years. If the member does not elec 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 such as Individual Retirement Account (IRA) or 457(b) government sponsored deferred compensation plan. BACKDROP pension payment for the year ended September 30, 2023, amounted to $1.8 million. Contributions and Funding Policies Members of the GESE contribute 10 percent of their base salaries or wages to the Plan. The GESE's funding policies provide for periodic contributions at actuarially determined rates that are sufficient to maintain the actuarial soundness of GESE and to accumulate sufficient assets to pay benefits when due Contributions are determined using the individual entry age normal cost method. 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) of 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 return (interest, dividends and net realized and unrealized gains and losses) on investment of GESE serves to reduce or increase future contributions that would otherwise be required to provide for the defined level of benefits under the GESE Plan. The payroll for employees covered by the GESE Trust for the year ended September 30, 2023, was approximately $142.3 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, 2023, the 102 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 average active employee contribution rate was 10.76 percent of annual pay, and the City's average contribution rate was 38.89 percent of annual payroll. Employer contributions for fiscal year 2023 totaled $55.3 million. Net Pension Liability The components of the net pension liability of the GESE Trust at September 30, 2023, are as follows: Total pension liability Plan fiduciary net position Net pension liability Plan fiduciary net position as a percentage of total pension liability ActuarialAs s umptions GESE Trust $ 1,157,715,610 (781,908,949) 375,806,661 67.54% The total pension liability was based on an October 1, 2021, actuarial valuation rolled forward to the measurement date of September 30, 2022, 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, 2022 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 S cale :MP-2018 103 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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 assumptions stated above are consistent with the prior year 2022. Long Term Rate of Return The long term expected rate of return on pension plan investments was determined using a long -normal distribution analysis in which best -estimate ranges of expected future real rates of return (expected returns, net of 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, 2023, 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 6.20% 7.25% 6.91% 0.76% 2.46% The discount rate used to measure the total pension liability was 7.45 percent and did not change in comparison to 2022. The projection of cash flows used to determine the discount rate assumed thatplan member contributions will be made, and the City contributions will be made in accordance with the City Ordinance and Florida Statutes. 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. 104 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 Changes in Net Pension Liability The following table shows the GESE Trust changes information provided to the City at September 30, 2023 Balance at 10/01/2022 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 09/30/2023 in net pension GESE Trust liability based on the Increase (Decrease) Total Pension Liability (a) $ 1,124,110,409 19,630,537 80,783,849 18,659,207 9,374,988 (15,316,483) (79,526,897) 33,605,201 $ 1,157,715,610 Plan Fiduciary Net Position (b) $ 933,467,916 55,807,861 15,679,905 (143,357,054) (79,526,897) (162,782) (151,558,967) $ 781,908,949 Sensitivity of'the Net Pension Liability to Changes in the Discount Rate Net Pension Liability (a) - (b) S 190,642,493 19,630,537 80,783,849 18,659,207 9,3 74,988 (15,316,483) (55,807,861) (15,679,905) 143,3 5 7,054 162,782 185,164,168 $ 375,806,661 actuarial The following table illustrates the impact of interest rate sensitivity on the GESE Trust net pension liability as of September 30, 2023: 1% Decrease (6.45%) Net Pension Liability $ 497,522,654 Current Discount Rate 1% Increase (7.45%) (8.45%) $ 375,806,661 $ 272,836,649 105 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 Pension Expense and Deferred OuJiw tdInflows of Resources Related to Pension For the year ended September 30, 2023, the City recognized pension expense of $65 million. At September 30, 2023 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 $ 16,888,956 $ 969,257 Changes of assumptions 18,380 13,013,075 Net difference between projected and actual earnings on pension plan investments 105,505,361 Employer contribution made subsequent to measurement date 55,325,610 Total $ 177,738,307 $ 13,982,332 There is $55.3 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, 2024. Other amounts reported will be recognized in pension expense as follows: Ye ar a nding S e pte mbe r 56 2024 $ 25,461,904 2025 22,536,756 2026 19,271,310 2027 41,333,450 2028 (173,055) $ 108,430,365 GESE Excess Benefit Pkmn (EBP) Plan Description In July 2000, the City, pursuant to applicable IRC provisions, established a single -employer 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 member; are not required to contribute to the EBP. Members of the GESE participate in this plan. As of October 1, 2022, the date of the most recent actuarial valuation report, membership in the EBP consisted of 12 retirees currently receiving benefits. 106 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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; and (c) deposited in a separate account established specifically foi the GESE to receive the City's excess retirement benefit contributions. This account is separate and apa: from the accounts established to receive the City's normal pension contributions for the GESE Trust. The EBP is an unfunded plan and the City is required to contribute amounts as benefits become payable. The payroll for employees covered by the EBP for the year ended September 30, 2023, was approximately $142.3 million. The City's contribution to the plan for the year ended September 30, 2023, was $237,284 and plan benefit payments were $237,284. Net Pens ion Liability The components ofthe net pension liability ofthe GESE EBP at September 30, 2023, are as follows: GESE EBP Net pension liability $ 3,691,890 Plan fiduciary net position as a percentage of total pension liability 0% The Excess Benefit Plan was established so that the amount of the defined benefits for eligible members is not diminished by changes in the IRS Tax code. The Plan pays GESE Trusts' participants whose benefits exceeded the amounts permitted by section 415 and 401(a)(17) of Internal Revenue Code. Accordingly, the Plan does not have a plan net position. Ac tuarialAs s ump do ns The total pension liability was based on an October 1, 2021, actuarial valuation rolled forward to the measurement date of September 30, 2022, using the following assumptions, applied to all periods included in the measurement: Actuarial Assumptions Measurement Date September 30, 2022 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 4.02% 107 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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 S cale :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 increased from 2.26% to 4.02%. Discount Rate The discount used to measure the total pension liability was 4.02 percent (an increase of 1.76 percent from the prior year rate of 2.26 percent). Since the Excess plan has no assets, there are no asset available to make projected future benefit payments of current plan members. Therefore, the applicable municipal bond index rate of 4.02 percent, based on the Bond Buyer General Obligation 20-year Municipal Bond Index as of September 30, 2023, was applied to all periods of projected benefit payments. As a result, the Single Equivalent Interest Rate (SEIR) is also 4.02 percent. The projection of cash flows used to determine the discount rate assumed that member contributions will be made, and the employer contributions will be made in accordance with the City Ordinance and Florida Statutes. 108 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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, 2023: GESE EBP Increase (Decrease) Total Pension Plan Fiduciary Net Net Pension Liability Position Liability (a) (b) (a) - (b) Balance at 19/91/2022 $ 7,474,627 $ - $ 7,474,627 Changes for the year: Interest 164,795 - 164,795 Differences between expected and actual experience (2,630,978) - (2,630,978) Changes of assumptions (950,935) - (950,935) Contributions - employer - 365,619 (365,619) Benefit payments, including refunds of member contributions (365,619) (365,619) - Net Changes (3,782,737) (3,782,737) Balances at 99/30/2023 $ 3,691,890 $ $ 3,691,890 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 EBP net pension liability as of September 30, 2023: Current Discount 1% Decrease Rate 1% Increase (3.02%) (4.02%) (5.02%) Net Pension Liability $ 4,187,778 $ 3,691,890 $ 3,286,838 109 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 Pension Expense and Deferred OuJiw tdInflows of Resources Related to Pension For the year ended September 30, 2023, the City recognized a credit to pension expense of $1,208,846 At September 30, 2023 the City reported deferred outflows and inflow of resources from the following source: Differences between expected and actual experience Changes of assumptions Employer contribution made subsequent to measurement date Total GESE EBP Deferred Outflows of Deferred Inflows of Resources Resources 200,405 $ 3,018,013 485,838 855,308 237,284 - 923,527 $ 3,873,321 There is $237,284 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, 2024. Other amounts reported will be recognized in pension expense as follows: Ye ar a nding September 3�b: 2024 $ (984,861) 2025 (748,773) 2026 (665,084) 2027 (684,037) 2028 (104,323) $ (3,187,078) City ofMiami General Employees and Sanitation Employees Retirement Trust (Staff Trust) Plan Description The Staff Trust is a single employer defined benefit plan to which member employees of the plan contribute 10% of their base salaries or wages. The Staff Trust was established by the rule -making authority of the GESE Trust, pursuant to Chapter 40 of the City Code. The Staff Trust covers all administrative full-time employees and other positions as may be named by the Board of Trustees. Participation in the Staff Trust is a mandatory condition of employment for all full-time employees, other than those eligible to decline membership. As of September 30, 2022, 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 2 Active employees 8 Total 17 110 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 Pension Benefits The minimum normal retirement age is 55. Any member who has 10 or more years of continuous creditable service may elect to retire, regardless of age. A member who has completed a combination of at least 10 or more years of creditable service plus attained an age equaling 70 points may elect a Rule a 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. Effective October 1, 2016, the Staff Trust approved a cost -of -living adjustment equal to 4% of the total benefit with minimum increases of $54 per year and maximum increases of $400 per year deferred five years from date of retirement of DROP entry date. Deferred Retirement Option Plq]iROP) 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 roll over 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, 2023, amounted to $1.1 million and is recorded with the Plan's Investments on the Statement of Fiduciary Net Position. Contributions and Funding Po* Members of the Staff Trust contribute 10 percent of compensation to the plan. 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 Staff Trust administrative and other expenses are funded througl reimbursements from the GESE Trust. The yield (interest, dividends and net realized and unrealized gains and losses) on investments of the Staff Trust serves to reduce or increase future contributions tha would otherwise be required to provide for the defined level of benefits under the Staff Plan. 111 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 The payroll for employees covered by the Staff Trust for the year ended September 30, 2023, was approximately $567,000. 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, 2023, the average active employee contribution rate was 12.80 percent of annual covered pay, and the City's average contribution rate was 45.30 percent of annual covered payroll. Employer contributions for fiscal year 2023 totaled approximately $257,000. Net Pension Liability The components of the net pension liability of the GESE Staff Trust at September 30, 2023, are as follows: GESE Staff Trust Total pension liability $ 6,306,198 Plan fiduciary net position (4,933,554) Net pension liability S 1.372.644 Plan fiduciary net position as a percentage of total pension liability 78.23% Actuarial Assumptions The total pension liability was based on an October 1, 2021, actuarial valuation rolled forward to the measurement date of September 30, 2022, using the following assumptions, applied to all periods included in the measurement: Actuarial Assumptions Measurement Date September 30, 2022 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 S cale :MP-2018 112 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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 assumptions stated above are consistent with the prior year 2022. Long Tenn Rate ofReturn 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 pension plan's target asse allocation as of September 30, 2023, 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 6.20% 7.25% 6.91% 0.76% 2.46% The discount rate used to measure the total pension liability was 7.45 percent and did not change in comparison to 2022. The projection of cash flows used to determine the discount rate assumed that member contributions will be made, and the employer contributions will be made in accordance with the City Ordinance and Florida Statutes. 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, 2023 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, 2023: Balance at 10/01/2022 Changes for the year: Service Cost Interest Differences between expected and actual experience Contributions - employer Contributions - member Net investment income Benefit payments, including refunds of member contributions Net Changes Balances at 09/30/2023 GESE Staff Trust Increase (Decrease) Total Pension Liability (a) $ 5,999,309 118,812 434,484 88,222 Plan Fiduciary Net Position (b) S 5,911,391 277,952 53,513 (974,673) Net Pension Liability (a) - (b) $ 87,918 118,812 434,484 88,222 (277,952) (53,513) 974,673 (334,629) (334,629) - 306,889 (977,837) 1,284,726 $ 6,306,198 $ 4,933,554 $ 1,372,644 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, 2023: Current Discount 1% Decrease Rate 1% Increase (6.45%) (7.45%) (8.45%) Net Pension Liability $ 2,265,171 $ 1,372,644 $ 656,830 114 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 Pension Expense and Deferred OuJiw tdInflows of Resources Related to Pension For the year ended September 30, 2023, the City recognized pension expense of $238,935. At Septembe 30, 2023 the City reported deferred outflows of resources as follows: Differences between expected and actual experience Changes of assumptions Net difference between projected and actual earnings on pension plan investments Employer contribution made subsequent to measurement date Total GESE Staff Trust Deferred Outflows of Resources $ 110,703 18,072 663,577 284,993 1,077,345 There is $284,993 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, 2024. Other amounts reported as deferred outflows of resources related to pensions will be recognized in pension expense as follows: Year ended September 30 2024 2025 2026 2027 GESE StaffExcess Benefit Plan Plan Description $ 200,731 151,838 156,793 282,990 $ 792,352 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 StaffTrust Plan who exceed the maximum benefit. There are no member contributions or plan assets. Effective October 1, 2017, 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 115 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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, 2022, the date of the most recent actuarial report valuation, membership in the EBP consisted of 1 retired member currently receiving benefits. As of September 30, 2023, there are no pension liabilities related to this plan that requires recognition or disclosure by the City. Elected Officers 'Retirement Trust (EORT) Plan Description Prior to October 22, 2009, the City's elected officials participated in a single -employer, non-contributory defined benefit pension plan under the administration and management of a separate Board of Trustees Under the EORT, eligibility requires 7 years of total service if elected between October 1, 2001, and October 22, 2009, or 10 years of total service if elected prior to October 1, 2001, as an elected official of the City to be vested without requiring that such service be continuous. Any official elected after October 22, 2009, is not eligible to participate in the plan. The City, pursuant to applicable IRC provisions, also established qualified governmental excess benefit plans to continue to cover the difference between the allowable pension to be paid, and the amount of the defined benefit, so that the benefits for eligible members are not diminished by changes in the RC. As of January 1, 2023, membership in the EORT consisted of the following: Members Retirees and beneficiaries currently receiving benefits 7 Terminated members entitled to benefits but not yet receiving benefits 0 Active officers 1 Total 8 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. 116 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 Contributions made to EORT are in accordance with actuarially determined contribution requirements, based on the actuarial valuation performed for each respective year. 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, 2023, was $430,025. For the year ended September 30, 2023, EORT had $101,919 in covered payroll for employees. Net Pension Liability The components of the net pension liability ofEORT at September 30, 2023, were as follows: EORT Total pension liability $ 10,099,585 Plan fiduciary net position (8,418,942) Net pension liability $ 1,680,643 Plan fiduciary net position as a percentage of total pension liability 83.36% Actuarial Assumptions The total pension liability was determined based on a January 1, 2023 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, 2023, and future period: investments net of pens ion 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 P2 12D(A) Retiree Table (general employees, benefits weighted, abcniedian income, sexdistinct), with fully generational mortality improvement projected under Scale MPH. No mortality is assumed for years prior to the expected commencement date for monthly benefits. 117 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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 Department, related to plan members who were in payment status prior to October 2009 and then reelected to office after October 2009 was reflected. Changes of Assumption The assumptions stated above are consistent with the prior year 2022. Long- Term Rate ofReturn 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 arithmetic real rates of return by asset class included in the pensions plan's target asset allocation as o September 30, 2023, are as follows: Asset Class U.S. Fixed Income Discount Rate Long -Term Expected Real Rate of Return O.40%/a The discount rate used to measure the total pension liability was 2.50 percent (includes inflation) and did not change in comparison to 2022. 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. 118 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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, 2023: EORT Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (a) (b) (a) - (b) Balances at 10/01/2022 $ 10,176,224 $ 7,792,772 $ 2,383,45' Changes for the year: Service Cost 48,919 - 48,919 Interest 248,761 248,761 Differences between expected and actual experience 132,848 132,848 Changes of assumptions - - - Contributions - employer - 1,226,119 (1,226,119) Net investment income - (90,382) 90,382 Benefit payments, including refunds of member contributions (507,167) (507,167) - Administrative expenses and Other - (2,400) 2,40( Net Changes (76,639) 626,170 (702,809; Balances at9/30/2023 $ 10,099,585 $ 8,418,942 $ 1,680,643 Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following table illustrates the impact of interest rate sensitivity on the EORT's net pension liability as of September 30, 2023: Current Discount 1% Decrease Rate 1% Increase (1.50%) (2.50%) (3.50%) Net Pension Liability $ 2,958,683 $ 1,680,643 $ 630,609 119 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 Pension Expense and Deferred OuJiw tdInflows of Resources Related to Pension For the year ended September 30, 2023, the City recognized pension expense of $394,065. At Septembe 30, 2023 the City reported deferred outflows of resources from the following sources: Deferred Outflow of Resources Net difference between projected and actual earnings on pension plan investments $ 429,209 Total $ 429,209 Deferred outflows of resources will be recognized in pension expense as follows: Year ended September3th 2024 $ 138,370 2025 128,001 2026 103,527 2027 59,311 $ 429,209 120 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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, 2023 Elected Officers Retirement Trust (EORT) Additions Contributions - Employer $ 430,025 Investment Earnings: Net Increase in Fair Value of Investments 66,639 Total Additions 496,664 Deductions Benefits Payments Administrative and Other Expenses Total Deductions Change in Net Position Net Position- Beginning of Year Net Position- End of Year 589,511 2,400 591,911 (95,247) 8,244,053 $ 8,148,806 121 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 City of Miami, Florida Statement of Fiduciary Net Position Fiduciary Fund September 30, 2023 Assets Investments: U.S. Government Obligations Money Market Funds Total Assets Liabilities Accrued Liability Net Position Restricted for Pension Benefits Elected Officers Retirement Trust (EORT) $ 6,775,781 1,389,520 8,165,301 16,495 $ 8,148,806 122 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 The following summarizes net pension liability, deferred inflow and outflow of resources at September 30, 2023, for each Pension Plan as previously disclosed in Note 10: Plan FIPO GESE Trust GESE EBP GESE Staff Trust EORT Total Net Pension Liability $1,082,543,260 375,806,661 3,691,890 1,372,644 1,680,643 $1,465,095,098 Deferred Inflow of Resources $ 36,952,579 13,982,332 3,873,321 Deferred Outflow of Resources $ 213,679,477 177,738,307 923,527 1,077,345 429,209 $ 54,808,232 $ 393,847,865 Pension Expense (Credit) $ 171,773,15C 65,049,282 (1,208,846) 238,935 394,065 $ 236,246,586 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 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, 2023, 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 $ 429,335,045 551,956 6,521,277 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 123 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 the minimum benefit provisions of Chapter 175 and 185, Florida Statutes, are met by the FIPO. The City does not have any fiduciary responsibility relating to the SBP, consequently plan assets are not recorded in the City's fiduciary funds. The total of such excise taxes received from the State of Florida and remitted to the plans was $14.0 million for the year ended September 30, 2023. Accordingly, these monies are recorded as pass through funds in the City's financial statements. Benefits are allocated to th 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. 754ccounting and Financial Reporting for Post -employment Benefits Other than Pensions (OPER* financial reporting and disclosure of its OPEB plans. Plan Description The City has three separate single -employer OPEB plans for its police, firefighter and general employees retirees. The benefits afforded to all retirees include lifetime medical, prescription, vision, dental and certain life insurance coverage for retiree and dependents. The City offers to its retiree's comprehensive medical coverage and life insurance benefits through its self-insurance plan. This plan was established in accordance with Section 112.0801, Florida Statutes. Substantially all of the City's general employees and sanitation employees 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 and Retired Firefighters receive the same benefits as provided through the IAFF Health Trust. As of September 30, 2023, there are approximately 5,745 covered participants of whom approximately 3,638 are active employees and 2,107 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. 124 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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. Thf City contributed $19.2 million to these OPEB Plans for the fiscal year ended September 30, 2023. 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 of Miami Police - OPEB Plan The City's total OPEB liability for its Police Officers was determined by an actuarial valuation as of October 1, 2021 and rolled forward to the measurement date September 30, 2023, using the following assumptions applied to allperiods included in the measurement date, unless otherwise specified: Actuarial Assumptions Projected salary increases Discount rate Healthcare cost trend rates Not applicable 4.09% 6.50% 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-2021 on a generational basis. The mortality table has been updated to reflect the same mortality tables described in the FIPO Retirement 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 4.02% at September 30, 2022 to 4.09% at September 30, 2023. The mortality table has been updated to reflect the MP-2021 projection scale. The medical trend rates have been reset to 6.50% in 2023, trending down by 0.5% per annum to an ultimate rate of 5.0% in 2026. 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 rating of AA/Aa or higher as of the measurement date. Therefore, a discount rate of 4.09% was adopted as of the September 30, 202 measurement date. 125 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 Changes in the Total OPEB Liability Police Plan Total OPEB Liability Balances at 10/1/2022 $ 415,792,728 Changes forthe year. Service Cost 15,262,518 Interest 17,131,202 Changes of assumptions (5,977,896) Benefit payments, including refunds of member contributions (9,909,529) Net Changes 16,506,295 Balances at9/30/2023 $ 432,299,023 Sensitivity of thd'otaiOPEB Liability to Changes in the Discount Rate The following table illustrates the impact of interest rate sensitivity on the total OPEB Liability for the year ended September 30, 2023: Police Plan Current Discount 1%Decrease Rate 1 %Increase (3.09%) (4.09%) (5.09%) Total OPEB Liability $ 530,433,456 $ 432,299,023 $ 358,533,268 The following table illustrates the impact of healthcare cost trend rate sensitivity on the total OPEB Liability for fiscal year ended September 30, 2023: 1%Decrease Police Plan Health Care Cost Trend Rates 1%Increase Total OPEB Liability $ 351,033,285 $ 432,299,023 $ 542,557,58 126 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 OPEB Expense and Deferred Outflows ofResources and Deferred Inflows of Resources Related to OPE. For the fiscal year ended September 30, 2023, the City recognized OPEB expense of $10,884,193. A September 30, 2023, the City reported deferred inflows of resources related to OPEB in the amount of $144,908,166 for changes in assumptions, and $89,901,756 for differences between expected and actu experience and deferred outflows of resources related to OPEB in the amount of $92,601,335 for change 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 September At 2024 $ (21,509,527 2025 (18,037,427 2026 (35,160,417 2027 (34,299,204) 2028 (29,676,937 Thereafter (3,525,075) $ (142,208,587 City ofMiami General Employe es — OPEB Plan The City's General Employees total OPEB liability was determined by an actuarial valuation as of September 30, 2022 and rolled -forward to the measurement date September 30, 2023. The Genera Employees Plan is inclusive of all City employees, excluding Police Officers and Firefighters. Actuarial Assumptions The following actuarial assumptions were used and applied to all periods included in the measurement unless otherwise specified: Actuarial Assumptions Projected salary increases Discount rate Healthcare cost trend rates 3.5% per annum 4.09% 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 7%-4% and are reduced 0.25% each year until rea the ultimate trend rate of 4%. The mortality assumption was updated from RP-2014 mortality table with generational scale MP-2018 to Pub-2010 mortality table with generational scale MP-2021 in the prior year. Change of assumptions and other inputs reflect a change in the discount rate from 4.02% at September 30, 2022 to 4.09% at September 30, 2023. 127 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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 4.09 %, which is based on the Bond Buyer 20-Bond GO index. Changes in the Total OPEB Liability General Employees Total OPEB Liability Balances at 10/1/2022 $ 160,036,91 Changes for the year: Service Cost 9,711,782 Interest 6,740,260 Changes of assumptions (1,803,562) Benefit payments, including refunds of member contributions (4,161,058) Net Changes 10,487,422 Balances at 9/30/2023 $ 170,524,33 Sensitivity of thd'otaiOPEB Liability to Changes in the Discount Rate The following table illustrates the impact of interest rate sensitivity on the total OPEB liability for fiscal year ended September 30, 2023: General Employees Current Dis count 1%Decrease Rate 1 %Increase (3.09%) (4.09 %) (5.09 %) Total OPEB Liability $ 199,527,000 $ 170,524,335 $ 147,243,000 The following table illustrates the impact of healthcare cost trend rate sensitivity on the total OPEB liability for fiscal year ended September 30, 2023: 1% Decrease General Employees Health Care Cost Trend Rates 1%Increase Total OPEB Liability $ 142,286,000 $ 170,524,335 $ 206,806,000 128 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 OPEB Expense and Deferred Outflows ofResources and Deferred Inflows of Resources Related to OPE. For the fiscal year ended September 30, 2023, the City recognized OPEB expense of $11,632,470. A September 30, 2023, the City reported deferred inflows of resources related to OPEB in the amount of $22,044,973 for differences between expected and actual experience and $49,954,025 for changes i assumptions and deferred outflows of resources related to OPEB in the amount of $11,261,895 for differences between expected and actual experience and $35,190,066 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: Ye ar a nding September 3b: 2024 $ (4,819,572 2025 (4,819,572) 2026 (4,819,572) 2027 (479,507) 2028 (4,929,327) Thereafter (5,679,487', $ (25,547,037 City of Miami 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, 2023, and determined by an actuarial valuation as of September 3 2022, 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 4.87% per annum The current health care trend rate starts at an initial rate of7.00% decreasing to an ultimate rate of 4.50%. Mortality rates were based on the Pub-2010 generational table scaled using MP-2021 and applied on gender -specific basis The prior valuation used a discount rate of 4.77% as of September 30, 2022. The current full valuation uses a discount rate of4.87% as of September 30, 2023. 129 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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 4.87%, 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 Balances at10/1/2022 Changes for the year. Service Cost Inte re s t Changes in assumption Differences between expected and actual experience Benefit payments, including refunds of member contributions Net Changes Balances at9/30/2023 Fire Plan Total OPEB liability $ 201,484,681 10,366,142 9,983,967 (3,738,132) 30,252,128 (5,146,640) 41,717,465 $ 243,202,15. Sensitivity ofthd'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, 2023: 1%Decrease (3.87%) Fire Plan Current Discount Rate 1 %Increase (4.87%) (5.87%) Total OPEB Liability $ 284,754,206 $ 243,202,153 $ 210,043,753 130 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 The following table illustrates the impact of healthcare cost trend rate sensitivity on the total OPEB Liability for fiscal year ended September 30, 2023: 1% Decrease Fire Plan Health care cost Trend Rates 1%Increase Total OPEB Liability $ 203,022,296 $ 243,202,153 $ 295,381,36] OPEB Expense and Deferred Outflows ofResources and Deferred Inflows ofResources Related to OPE. For the fiscal year ended September 30, 2023, the City recognized OPEB expense of $33,785,293. A September 30, 2023, the City reported deferred outflows ofresources related to the Fire OPEB plan in thf amount of $123,397,170 for differences between expected and actual experience and $11,182,606 fo changes in assumptions and deferred inflows of resources related to OPEB in the amount of $45,691,18 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 ending September 3'b: 2024 2025 2026 2027 2028 Thereafter $ 13,435,18, 13,435,184 13,435,184 13,435,184 13,435,184 21,712,675 $ 88,888,59: The following summarizes total OPEB liability, deferred inflow and outflow of resources and OPEB expense at September 30, 2023 for each OPEB plan. Plan Police Fire General Employee Total Total OPEB Liability $ 432,299,023 243,202,153 170,524,335 $ 846,025,511 Deferred Inflow of Resources $ 234,809,922 45,691,181 71,998,998 $ 352,500,101 Deferred Outflow of Resources $ 92,601,335 134,579,776 46,451,961 $ 273,633,072 OPEB Expense $ 10,884,193 33,785,293 11,632,470 $ 56,301,956 131 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 NOTE 12. — COMMITMENTS AND CONTINGENCIES The City participates in a number of federal and state grant programs. These programs are subject to auw under the requirements of the Florida Single Audit Act, Chapter 10.550, Rules of the Florida Auditor General and OMB Uniform Guidance. These grants are for specific purposes and are subject to reviev and audit by the grantor agencies. Such audits could result in requests for reimbursement for expenditure being disallowed under the grant terms. Based upon prior experience, the City's management believe: any requests for reimbursement, if any, will not be significant. Global Agreement: In December 2007, the City, the County, the OMNI CRA, and the Southeast Overtown Park West CRA, entered into an interlocal agreement that establishes the funding framework for several major facilities and infrastructure improvement projects. Those projects included the Arsht Performing Arts Center ("Arsht Center"), Miami Port Tunnel, Museum Park improvements, and the Miami Marlins Baseball Stadium and parking facilities. The agreement specifically calls for the OMNI CRA to increase its contribution to the County to service debt and other loans on the Arsht Center. Further, the agreement established parameters by which tl City, County, and 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. On March 1, 2023, the City closed a tax-exempt loan transaction in the principal amount of $26,460,000, the proceeds of which were used to prepay, on a current basis, all of the City's outstanding Special Obligation Non -Ad Valorem Revenue Refunding Note, Taxable Series 2020 (Port of Miami Tunnel Project). As of September 30, 2023, the total outstanding related debt was paid for the Non -Ad Valorem Revenue Refunding Bonds, Series (Port of Miami Tunnel Project) issued December 13, 2012, and the total outstanding related debt for the Special Obligation Non -Ad Valorem Revenue Refunding Note, Tax -Exempt Series 2023 (Port of Miami Tunnel Project) was approximately $26.4 million. 346 NW 21' Street, LLC, et aL v. City of Nfiami, 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 132 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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 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 $4.7 million have been paid, leaving the remaining balance of approximately $3.2 million for distribution to the class on an annual basis every OcfobTelbalance is recorded as a Claims Payable under Non -Current Liabilities in the Statement of Net Position. Fraternal Order of Police, Walter E. Headley, Jr., Miami Lodge No. 20 v. City of Miami,The FOP Miami Lodge 20 (hereinafter the `Police Union") alleges that it had 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. On March 2 2017, the Florida Supreme Court issued a decision in favor of FOP, quashing the decision of the First District and remanding the case to the First District for proceedings consistent with State law. The PERC entered an Order on the Merits of the Unfair Labor Practice Charge and scheduled a back -pay hearing i June 2018. Despite the pendency of the back -pay case, the FIPO Trust voted to disburse adjusted pensi payments to its members. The City filed an injunction and the Third District Court of Appeal held that the FIPO Trust had no authority to make adjusted pension payments at that time, and that neither the Florid, 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 financial urgency litigation proceedings. The Third District also affirmed the trial court's ruling abating the proceedings pursuant to 133 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 Chapter 164 of the Florida Statutes. Pursuant to the Court's opinion, the parties should commence forma intergovernmental dispute resolution proceedings under Florida Statutes Chapter 164. The FOP backpa case before the PERC began on June 18, 2018. FOP presented its case and the parties agreed to close record and attempt mediation. The parties negotiated a settlement agreement, which was approved by tl 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 September 30, 2023 is $8.7 million. The balance i; recorded as a Claims Payable under Non -Current Liabilities in the StatementofNetPosition. International Association of Firefighters, Local 587 v. City of Miami,The IAF Local 587 (hereinafter "Firefighters Union") alleges that it had 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 an3 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 till 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 outccifutycliry v. City ofMiamTThe 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. TI 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 on September 30, 2023 is $5.( million. The balance is recorded as a Claims Payable under Non -Current Liabilities in the Statement of Net Position. Public Benefit Agreement Regarding Construction of Fire Station NoAQn April 13, 2020, the City entered into a Public Benefit Agreement with 191 SW 12 Owner LLC (Developer"). The City is the owner of Fire Station No. 4, located at 1105, 1115, 1131, and 1133"S'We2ue. The Developer is the owner of the adjacent property, located at 191 SWS1t2eet. 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 the 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 134 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 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 $250 thousand, (10) contribute funds in the amount of $200 thousand 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 has received the $9.0 million TDR payment for the exclusive use of promoting and developing affordable housing, and a total amount of $500 thousand for the purpose of promoting arts, culture, and entertainment throughout District3. All monies received to date have been recorded in a special revenue fund. Richard Klugh et al v. City of 1Viami, is a class action alleging a constitutional challenge to a City of Miami ordinance and the related City regulations that impose a parking surcharge. Under Fla. Stat. § 166.271(1), a municipality may impose and collect a parking surcharge if it satisfies the following preconditions: (1) the municipality is located in county with a population of more than 500,000, (2) the municipality has a resident population of 200,000 or more, and (3) "more than 20 percent of the real property" in the municipality is exempt from ad valorem taxes. Plaintiffs allege that since as early as 2017, more than 20 percent of the real property in the Cityiwtxempt from ad valorem taxes. Thus, according to Plaintiffs, the City no longer satisfied a precondition for imposing and collecting the parking surcharge. Plaintiffs define the class as allpeople who paid the City's parking surcharge from October 24 2019, to date. Plaintiffs seekl¢keralia, a refund of the parking surcharge paid by the class members. The case is pending a hearing for class certification. The average annual collection of the parking surcharge since fiscal year 2017 is $23.2 million. Litig a do n The City is involved in various lawsuits arising from the ordinary course of operations. Although the outcome of these matters is not presently determinable, it is the opinion of management of the City base, upon consultation with legal counsel, that the outcome of these matters will not have an adverse materia 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 expenditure of funds are recorded in order to reserve that portion of the applicable appropriation, is utilized in the governmental funds. Encumbrances do not constitute expenditures or liabilities and are recorded in the appropriate fund balance classifications of restricted, committed or assigned in accordanc with the City's fund balance policy. 135 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 The City has outstanding encumbrances commitments on September 30, 2023. The City has outstanding encumbrances commitments on September 30, 2023. Governmental Funds in the governmental funds. The in the governmental funds. The Major Funds: Other Capital Projects Emergency Services Non Major Governmental Funds NOTE 13. — SUBSEQUENT EVENTS following is a summary of these following is a summary of these Totals $ 45,902,704 2,411,069 31,345,756 79,659,529 On November 20, 2023, the City closed on its $241.22 million tax-exempt Special Obligation Non -Ad Valorem Revenue Bonds, Series 2023A and $30.175 million Taxable Special Obligation Non -Ad Valorem Revenue Bonds, Series 2023B. The proceeds of the 2023A Bonds will fund a portion of the cost of the development, construction and equipping of the City's new administrative building and the 2023B Bonds will fund the acquisition and implementation of the Oracle Enterprise Resource Planning Cloud System. The combined all -in true interest cost was 4.79%. On March 13, 2024, the City received notification of award of the Reconnecting Communities and Neighborhoods Grant from the U.S. Department of Transportation in the amount of $60.3 million. The funds will be applied to the Connecting Miami: I-395 Underdeck and Heritage Trail Project. The project is a planned public landscape that weaves below the elevated I-395 highway viaducts, creating a 33-acr urban open space and streetscapes that will reunite the urban fabric of Overtown, a historically Black neighborhood that was disconnected during highway construction in the 1960s. The Underdeck will provide a safe place for walking, jogging, biking, and scooting, encouraging non -vehicular transportation options, while improving quality of life, economic vitality, and social equity for all through the creation of an environmentally sustainable and resilient urban landscape. 136 CITY OF MIAMI, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2023 NOTE 14. — PRONOUNCEMENTS ISSUED, BUT NOT YET ADOPTED GASB Statement No. 100, Accounting Changes and Error Corrections — an amendment of GASB Statement No. 62.The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The requirements of this Statement are effective for the City beginning with its year ending September 30, 2024. GASB StatementNo. 101, Compensated Abs enci'lie objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance fc compensated absences. That objective is achieved by aligning the recognition and measurement guidam under a unified model and by amending certain previously required disclosures. The requirements of this Statement are effective for the City beginning with its year ending September 30, 2025. GASB StatementNo. 102, Certain Risk Disclosure The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government's vulnerabilities due to certain concentrations or constraints. The requirements of this Statement will improve financial reporting by providing users of financial statements with essential information that currently is not often provided. The disclosures will provide users with timely information regarding certain concentrations or constraints and related events that have occurred or have begun to occur th make a government vulnerable to a substantial impact. As a result, users will have better information with which to understand and anticipate certain risks to a government's financial condition. The requirements of this Statement are effective for fiscal years beginning after June 15, 2024, and all reporting periods thereafter. Earlier application is encouraged. The City's management has not yet determined the effect these statements will have on the City's financial statements. 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, 2023 (Unaudited) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Revenues: Property Taxes $ 490,546,000 $ 490,546,000 $ 477,979,040 $ (12,566,960) Franchise and Other Taxes 124,167,000 124,167,000 141,744,958 17,577,958 Licenses and Permits 78,451,000 85,063,000 102,132,204 17,069,204 Fines and Forfeitures 6,208,000 6,208,000 7,131,590 923,590 Intergovernmental Revenues 96,229,000 108,492,000 104,634,287 (3,857,713) Charges for Services 126,662,000 126,662,000 149,076,204 22,414,204 Investment Earnings 2,537,000 31,526,000 32,296,248 770,248 Other 25,431,000 28,109,000 7,096,221 (21,012,779) Total Revenues 950,231,000 1,000,773,000 1,022,090,752 21,317,752 Expenditures: General Government Mayor 3,132,000 3,132,000 2,754,639 377,361 Commissioners 10,616,000 10,616,000 8,126,814 2,489,186 City Manager 6,236,000 6,236,000 3,335,675 2,900,325 Agenda Coordination 386,000 386,000 364,488 21,512 City Clerk 2,152,000 2,152,000 2,124,448 27,552 Civil Service Board 622,000 622,000 617,871 4,129 Independent Auditor General 1,776,000 1,776,000 1,567,836 208,164 Communications 1,571,000 1,571,000 1,482,099 88,901 Human Resources 6,033,000 6,033,000 5,939,500 93,500 Dept Human Services 6,624,000 7,582,000 7,596,714 (14,714) Innovation and Technology Department 15,710,000 15,710,000 14,700,018 1,009,982 City Attomey 12,279,000 12,279,000 11,739,771 539,229 Management and Budget 3,174,000 3,174,000 3,165,569 8,431 Procurement 3,451,000 3,451,000 3,173,793 277,207 Equal Opportunity & Diversity Programs 619,000 619,000 596,253 22,747 Finance 12,358,000 12,358,000 14,016,860 (1,658,860) Capital Improvements and Transportation 3,925,000 3,925,000 3,386,129 538,871 Grants Administration 2,025,000 2,025,000 1,659,903 365,097 Non -Departmental 43,890,000 43,684,000 45,311,674 (1,627,674) Risk Management 4,135,000 4,135,000 3,327,092 807,908 Total General Government 140,714,000 141,466,000 134,987,146 6,478,854 Planning and Development Building 27,266,000 28,944,000 29,061,767 (117,767) Planning 6,461,000 6,461,000 5,817,679 643,321 Zoning Department 5,849,000 5,849,000 5,284,016 564,984 Total Planning and Development 39,576,000 41,254,000 40,163,462 1,090,538 Public Works Solid Waste 44,373,000 45,985,000 46,006,556 (21,556) General Service Administration 32,638,000 33,542,000 33,382,178 159,822 Public Works and Sustainability 30,910,000 31,910,000 30,582,044 1,327,956 Resiliency and Sustainability 1,062,000 1,062,000 932,777 129,223 Total Public Works 108,983,000 112,499,000 110,903,555 1,595,445 Public Safety Code Compliance 10,713,000 10,713,000 10,457,454 255,546 Fire - Rescue 194,681,000 193,064,000 193,272,290 (208,290) Police 321,972,000 287,527,000 286,365,569 1,161,431 Total Public Safety 527,366,000 491,304,000 490,095,313 1,208,687 Real Estate and Asset Management Housing and Community Development Parks and Recreation Total other Departmnets Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures 17,480,000 17,961,000 18,236,640 (275,640) 1,833,000 1,833,000 1,831,954 1,046 61,766,000 60,421,000 58,692,171 1,728,829 81,079,000 80,215,000 78,760,765 1,454,235 897,718,000 866,738,000 854,910,241 11,827,759 52,513,000 134,035,000 167,180,511 33,145,511 Other Financing Sources (Uses): Transfers In 14,898,000 14,898,000 21,593,167 6,695,167 Transfers Out (67,563,000) (149,085,000) (163,980,464) (14,895,464) Proceeds from Sale of Property 152,000 152,000 912,162 760,162 Issuance of Lease - - 2,049,398 2,049,398 Total Other Financing Sources (Uses) (52,513,000) (134,035,000) (139,425,737) (5,390,737) Net Change in Fund Balance Fund Balance - Beginning of Year 27,754,774 27,754,774 188,241,630 188,241,630 Fund Balance - End of Year $ - $ - $ 215,996,404 $ 215,996,404 See Notes to Required Supplementary Information. 138 Notes to Required Supplementary Information City of Miami, Florida Year Ended September30, 2023 (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 accoun 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 betwdban.$u1y 1 September 3`�Q o Such report is prepared after consultation with the City Manager. o Public hearings are conducted to obtain taxpayer comments. o Prior to Octobersl, the budget is legally enacted through the passage ofa resolution and adoption of the budg report. Management may not make changes to the adopted budget without the approval ofa majority vote the Commission. o The Commission may transfer among depaitnients 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 'cycle xcept for the General Fund, which is maintained at the departmental level. All budget amendments require City Commission approval. During fiscal year 2023, supplemental appropriation totaling $50.5 million increase in the General Fund. The Special Revenue Funds budget was increased in fiscal 5 2023 as follows: $55.9 million was allocated to Departmental Improvement Initiatives, $4.2 million was allocated t Fire Rescue Services, $3.6 million to Miami Ballpark Parking Facilities, $3.4 million to Police Services, $3.0 million tc Parks and Recreation Services, $1.4 million to Planning Services, $1.4 million to Public Art Fund, $1.2 million tl General Special Revenues, $1.1 million to Public Works Services, $400,000 to Public Facilities, $376,000 to Plann: and Zoning Tree Trust Fund, $329,000 to Law Enforcement Trust Fund, $243,000 to Historic Preservation Trust Fu: $192,000 to Human Services, and a reduction of$11.5 million to UASI-Fire Rescue, $464,000 to Transportation a Transit, $102,000 to Solid Waste Recycling Trust, and $46,000 to City Clerk Services. The CRA budgets for transff in their Special Revenue Fund Operating Budget to pay for their Special Obligation Bonds, therefore the schedule budget to actuals is not reflected in the Required Supplementary Information. 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 Six Years (Unaudited) 2023 2022 2021 2020 2019 2018 Total OPEB liability Service cost $ 15,262,518 $ 28,439,539 $ 27,620,413 $ 23,424,653 $ 15,532,134 $ 18,643,389 Interest 17,131,202 13,166,306 12,673,651 12,875,493 17,584,487 16,174,180 Differences between expected and actual experience - (25,783,543) - (150,693,611) - Changes of assumptions (5,977,896) (180,153,744) 7,939,551 80,970,635 166,632,926 (52,081,436) Benefit payments (9,909,529) (9,037,396) (9,786,494) (9,114,857) (11,270,476) (9,692,349) Net Change in total OPEB liability 16,506,295 (173,368,838) 38,447,121 (42,537,687) 188,479,071 (26,956,216) Total OPEB liability - beginning Total OPEB liability - ending Covered -employee payroll City's Total OPEB liability as a percentage of covered -employee payroll 415,792,728 589,161,566 550,714,445 593,252,132 404,773,061 431,729,277 $ 432,299,023 $ 415,792,728 $ 589,161,566 $ 550,714,445 $ 593,252,132 $ 404,773,061 $ 151,908,517 $ 146,409,507 $ 154,307,948 $ 126,533,994 $ 116,997,315 $ 117,554,673 285% 284% 382% 435% 507% 344% 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 4.02% to 4.09%. (3) There are no assets accumulated in a trust to pay related benefits for the OPEB plan. 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 Six Years (Unaudited) 2023 2022 2021 2020 2019 2018 Total OPEB liability Service cost $ 9,711,782 $ 11,463,516 $ 11,228,830 $ 9,770,177 $ 12,089,305 $ 11,604,247 Interest 6,740,260 4,249,792 4,056,735 5,440,284 8,428,692 7,543,984 Differences between expected and actual experience - 14,987,224 - (46,944,745) Changes of assumptions (1,803,562) (55,142,732) 2,028,674 12,599,295 62,941,852 (20,723,542) Plan change - - - (74,064,500) - Benefit payments (4,161,058) (3,444,217) (3,449,534) (3,116,358) (5,278,831) (4,900,471) Net Change in total OPEB liability 10,487,422 (27,886,417) 13,864,705 (22,251,347) 4,116,518 (6,475,782) Total OPEB liability - beginning 160,036,913 187,923,330 174,058,625 196,309,972 192,193,454 198,669,236 Total OPEB liability - ending $ 170,524,335 $ 160,036,913 $ 187,923,330 $ 174,058,625 $ 196,309,972 $ 192,193,454 Covered -employee payroll $ 132,920,183 $ 126,590,650 $ 104,021,000 $ 100,990,997 $ 104,744,000 $ 154,355,815 City's Total OPEB liability as a percentage of covered -employee payroll 128% 126% 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 4.02% to 4.09%. (4) There are no assets accumulated in a trust to pay related benefits for the OPEB plan. 141 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 Five Years (Unaudited) 2023 2022 2021 2020 2019 Total OPEB liability Service cost $ 10,366,142 $ 10,109,849 $ 8,325,799 $ 5,753,979 $ - Interest 9,983,967 4,599,910 3,604,440 2,121,916 (1,295) Changes of benefit terms - - - - 74,127,736 Changes in assumptions (3,738,132) (52,486,381) (616,017) 18,637,678 - Differences between expected and actual experience 30,252,128 62,240,445 30,740,330 42,693,288 - Benefit payments (5,146,640) (4,306,174) (3,903,874) (95,000) (61,941) Net Change in total OPEB liability 41,717,465 20,157,649 38,150,678 69,111,861 74,064,500 Total OPEB liability - beginning 201,484,688 181,327,039 143,176,361 74,064,500 Total OPEB liability - ending $ 243,202,153 $ 201,484,688 $ 181,327,039 $ 143,176,361 $ 74,064,500 Covered -employee payroll City's Total OPEB liability as a percentage of covered -employee payroll $ 65,305,811 $ 62,344,449 $ 59,517,374 $ 56,818,495 $ 54,242,000 372% 323% 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) 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) The Covered Employee Payroll for fiscal year 2023 is based on the Payroll for fiscal year 2022 increased by the wage inflation rate (4.75%) (4) The discount rate changed from 4.77% to 4.87% for the year ended September 30, 2023. (5) There are no assets accumulated in a trust to pay related benefits for the OPEB plan. Required Supplementary Information City of Miami, Florida Schedule of Changes in the Net Pension Liability and Related Ratios Firefighters and Police (FIPO) Last Ten Fiscal Years (Unaudited) 2023 2022 2021 2020 2019 2018 2017 (Restated) 2016 2015 2014 Total pension liability Service cost $ 48,985,511 $ 46,664,662 $ 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 177,545,797 170,619,991 159,732,358 160,096,512 152,192,907 149,244,425 146,548,443 156,265,650 156,479,438 155,338,970 Changes of benefitterms - 45,605,790 119,271,883 4,270,406 55,386,337 122,641,436 - 9,453,429 - Differences between expected and actual experience 26,912,741 11,516,006 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 (181,177,358) (174,397,080) (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 72,266,691 100,009,369 250,729,819 (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 2,577,971,693 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 2,123,883,136 Changes in Benefit Terms - - - - - (122,641,436) - - - - Restatement - - - - (198,092,739) - - - Total pension liability - ending 2,650,238,384 2,577,971,693 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 107,166,543 73,386,674 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 16,887,735 17,385,719 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 149,770,178 (220,842,878) 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, including refunds of member contributions (181,177,358) (174,397,080) (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 (2,093,447) (2,159,543) (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 90,553,651 (306,627,108) 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 1,477,141,473 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 1,699,958,806 Restatement - - - - - - - - - (198,092,739) Plan fiduciary net position - ending 1,567,695,124 1,477,141,473 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 pension liability $ 1,082,543,260 $ 1,100,830,220 $ 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 59.15% 57.30% 71.99% 70.32% 70.02% 73.87% 71.03% 76.49% 77.26% 81.34% $ 187,880,152 $ 189,755,997 $ 178,532,455 $ 176,635,566 $ 168,059,448 $ 166,670,939 $ 141,497,840 $ 133,083,231 $ 106,278,378 $ 93,705,765 576.19% 580.13% 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, 2014. The retirement rates were changed for all active participants since they are now eligible for the Forward DROP beginning in October 1, 2021. 143 Required Supplementary Information City of Miami, Florida Schedule of Changes in the Net Pension Liability and Related Ratios General and Sanitation Employees (GESE) Last Nine Fiscal Years (Unaudited) 2023 2022 2021 2020 2019 2018 2017 2016 2015 Total pension liability Service cost $ 19,630,537 $ 19,869,463 $ 18,328,598 $ 14,701,646 $ 14,547,783 $ 12,906,853 $ 10,165,542 $ 9,234,478 $ 8,678,294 Interest 80,783,849 79,331,327 77,267,497 72,575,197 70,181,377 64,220,387 63,603,300 64,212,607 64,248,602 Changes of benefit terms 18,659,207 13,656,820 51,240,022 - - - - Differences between expected and actual experience 9,374,988 (755,419) 17,095,189 (2,153,338) 21,593,105 10,997,320 8,476,546 (8,035,778) - Changes of assumptions (15,316,483) (1,593,601) 78,636 64,620,251 (421,932) Benefit payments, including refunds of member contributions (79,526,897) (78,369,982) (74,794,162) (74,608,564) (75,040,709) (73,580,735) (73,827,066) (73,029,933) (73,771,095) Net change in total pension liability 33,605,201 20,075,389 49,960,341 61,833,599 31,281,556 79,164,076 7,996,390 (7,618,626) (844,199) 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 pension liability 1,124,110,409 1,104,035,020 1,054,074,679 992,241,080 960,959,524 881,795,448 873,799,058 881,417,684 882,261,883 1,157,715,610 1,124,110,409 1,104,035,020 1,054,074,679 992,241,080 960,959,524 881,795,448 873,799,058 881,417,684 55,807,861 54,121,724 49,923,146 15,679,905 13,863,911 14,457,555 (143,357,054) 169,736,310 50,886,836 (79,526,897) (78,369,982) (74,794,162) (162,782) (317,969) 95,992 (151,558,967) 159,033,994 40,569,367 933,467,916 774,433,922 733,864,555 781,908,949 933,467,916 774,433,922 43,526,929 40,879,285 34,355,719 32,881,500 33,036,318 13,094,948 10,847,473 11,081,234 9,595,465 8,163,643 47,381,929 60,276,827 78,645,544 60,237,354 1,496,395 (74,608,564) (75,040,709) (73,580,735) (73,827,066) (73,029,933) (60,585) (287,451) (352,230) (233,337) (176,693) 29,334,657 36,675,425 50,149,532 28,653,916 (30,510,270) 704,529,898 667,854,473 617,704,941 589,051,025 619,561,295 30,710,096 7,231,235 65,272,884 (73,771,095) (265,995) 29,177,125 590,384,170 733,864,555 704,529,898 667,854,473 617,704,941 589,051,025 619,561,295 S 375.806,661 $ 190,642,493 $ 329,601,098 $ 320.210,124 5 287.711.182 $ 293.105,051 $ 264.090.507 $ 284,748.033 $ 261,856,389 Plan fiduciary net position as a percentage of the total pension liability 67.54% 83.04% 70.15% 69.62% 71.00% 69.50% 70.05% 67.41% 70.29% Covered payroll $ 131,715,858 $ 129,902,012 $ 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 payroll 285.32% 146.76% 268.75% 288.47% 258.90% 301.01% 325.76% 395.90% 394.54% Notes to Schedule: This Schedule is presented to illustrate the requirement of GASB 68. The City implemented GASB No.68 for the fiscal year ended September 30, 2015. This Schedule will present 10 years as information becomes available. Updated mortality to comply with Florida Statute 112.63(1)(f). 144 Total pension liability Service cost Interest Differences between expected and actual experience Changes of assumptions Benefit payments, including refunds of member contributions Net change in total pension liability 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 Nine Fiscal Years (Unaudited) 2023 2022 2021 2020 2019 2018 2017 2016 2015 164,795 (2,630,978) (950,935) (365,619) (3,782,737) Total pension liability - beginning 7,474,627 Total pension liability - ending 3,691,890 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 pension liability $ - $ $ - $ - $ - $ $ - $ - 159,670 225,257 318,281 387,640 385,137 469,106 392,659 427,362 324,879 (1,061,015) (930,692) (2,359,812) (1,948,114) (516,393) 3,177,002 763,199 (52,548) 435,484 1,294,576 (571,232) (92,094) 1,459,230 - - (364,502) (417,755) (477,892) (587,959) (674,572) (680,534) (653,302) (556,805) 67,499 (818,029) 204,273 (3,131,363) (2,329,643) 731,409 2,916,359 633,756 7,407,128 8,225,157 8,020,884 11,152,247 13,481,890 12,750,481 9,834,122 9,200,366 7,474,627 7,407,128 8,225,157 8,020,884 11,152,247 13,481,890 12,750,481 9,834,122 365,619 364,502 417,755 477,892 587,959 674,572 680,534 648,302 561,805 (365,619) (364,502) (417,755) (477,892) (587,959) (674,572) (680,534) (653,302) (556,805) - - - - 5,000 (5,000) $ 3.691,890 $ 7.474.627 $ 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 as a percentage of the total pension liability 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Covered payroll $ 131,715,858 $ 129,902,012 $ 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 payroll 2.80% 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 2.26% to 4.02% for the year ended September 30, 2023. Updated mortality to comply with Florida Statute 112.63(1)(0. 5.75% 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 Trust) Last Nine Fiscal Years (Unaudited) 2023 2022 2021 2020 2019 2018 2017 2016 2015 Total pension liability Service cost $ 118,812 $ 113,703 $ 102,120 $ 82,784 $ 69,391 $ 52,832 $ 45,464 $ 43,416 $ 77,022 Interest 434,484 415,667 400,033 385,782 369,771 320,492 365,280 353,121 345,755 Changes of benefit terms - - 460,951 - - Differences between expected and actual experience 88,222 46,797 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 (334,629) (312,565) (310,171) (305,180) (308,761) (295,460) (332,554) (340,299) (311,388) Net change in total pension liability 306,889 263,602 317,033 190,006 208,876 655,053 (607,853) 156,107 111,389 Total pension liability - beginning Total pension liability - ending 5,999,309 5,735,707 5,418,674 5,228,668 5,019,792 4,364,739 4,972,592 4,816,485 4,705,096 6,306,198 5,999,309 5,735,707 5,418,674 5,228,668 5,019,792 4,364,739 4,972,592 4,816,485 Plan fiduciary net position Contributions - employer 277,952 254,056 221,616 232,280 233,242 247,449 269,054 291,087 291,968 Contributions - member 53,513 46,617 44,971 40,846 32,621 24,542 19,316 19,838 23,377 Net investment income (974,673) 1,108,679 451,577 176,655 424,372 438,774 364,079 (15,614) 338,281 Benefit payments, including refunds of member contributions (334,629) (312,565) (310,171) (305,180) (308,761) (295,460) (332,554) (340,299) (311,388) Net change in plan fiduciary net position (977,837) 1,096,787 407,993 144,601 381,474 415,305 319,895 (44,988) 342,238 Plan fiduciary net position -beginning 5,911,391 4,814,604 4,406,611 4,262,010 3,880,536 3,465,231 3,145,336 3,190,324 2,848,086 Plan fiduciary net position - ending 4,933,554 5,911,391 4,814,604 4,406,611 4,262,010 3,880,536 3,465,231 3,145,336 3,190,324 City's net pension liability $ 1,372,644 $ 87,918 $ 921,103 $ 1,012,063 $ 966,658 $ 1,139,256 $ 899,508 $ 1,827,256 $ 1,626,161 Plan fiduciary net position as a percentage of the total pension liability 78.23% 98.53% 83.94% 81.32% 81.51% 77.30% 79.39% 63.25% 66.24% Covered payroll $ 433,844 $ 417,671 $ 387,761 $ 320,720 $ 280,425 $ 225,148 $ 172,459 $ 164,547 $ 298,958 Net pension liability as a percentage of covered payroll 316.39% 21.05% 237.54% 315.56% 344.71% 506.00% 521.58% 1110.48% 543.94% 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. Updated mortality to comply with Florida Statute 112.63(1)(f). 146 Required Supplementary Information City of Miami, Florida Schedule of Changes in the Net Pension Liability and Related Ratios Elected Officers Retirement Trust (FORT) Last Ten Fiscal Years (Unaudited) 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Total pension liability Service cost $ 48,919 $ 66,869 $ 73,209 $ - $ - $ - $ - $ 88,956 $ 98,028 $ 257,052 Interest 248,761 268,338 269,170 246,287 311,867 319,429 317,610 316,813 304,126 308,476 Differences between expected and actual experience 132,848 (600,249) 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 (507,167) (491,782) (476,745) (319,771) (318,442) (325,800) (318,754) (263,320) (260,660) (261,135) Net change in total pension liability (76,639) (756,824) (18,769) 927,120 1,535,761 (205,647) 52,316 140,228 348,835 53,675 Total pension liability - beginning 10,176,224 Total pension liability - ending 10,099,585 10,933,048 10,951,817 10,024,697 8,488,936 8,694,583 8,642,267 8,502,039 8,153,204 10,176,224 10,933,048 10,951,817 10,024,697 8,488,936 8,694,583 8,642,267 8,502,039 8,099,529 8,153,204 Plan fiduciary net position Contributions - employer 1,226,119 - 1,361,670 - 366,358 553,471 406,911 860,089 551,222 - Net investment income (90,382) (20,107) 68,090 132,455 125,407 47,166 54,780 42,971 61,789 (19,893) Benefit payments, including refunds of member contributions (507,167) (491,782) (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) (2,400) (2,400) Net change in plan fiduciary net position 626,170 (514,289) 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 City's net pension liability Plan fiduciary net position as a percentage of the total pension liability Covered payroll Net pension liability as a percentage of covered payroll 7,792,772 8,307,061 7,356,446 7,546,162 7,375,239 7,102,802 6,962,265 6,324,925 5,974,974 6,258,402 $ 8,418,942 $ 7,792,772 $ 8,307,061 $ 7,356,446 $ 7,546,162 $ 7,375,239 $ 7,102,802 $ 6,962,265 $ 6,324,925 $ 5,974,974 $ 1,680,643 $ 2,383,452 $ 2,625,987 $ 3,595,371 $ 2,478,535 $ 1,113,697 $ 1,591,781 $ 1,680,002 $ 2,177,114 $ 2,178,230 83.36% 76.58% 75.98% 67.17% 75.28% 86.88% 81.69% 80.56% 74.39% 73.28% $ 101,919 $ 100,614 $ 100,614 $ 100,585 $ - $ - $ - $ 100,788 $ 103,194 $ 298,788 1649.00% 2368.91% 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, 2014. N/A = Not Applicable 147 City of Miami, Florida Schedule of Contributions - FIPO September 30, 2023 Last 10 Fiscal Years (Unaudited) FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 Actuarially determined contribution $ 107,166,543 $ 73,386,674 $ 69,982,149 $ 67,564,414 $ 62,694,851 Contributions made in relation to the actuarially determined contribution 107,166,543 73,386,674 69,982,149 67,564,414 62,694,851 Contribution deficiency (excess) $ - $ - $ $ - $ Covered payroll $ 187,880,152 $ 189,755,997 $ 178,532,455 $ 176,635,568 $ 168,059,448 Contributions as a percentage of covered payroll 57.04% 38.67% 39.20% 38.25% 37.31% FY 2018 FY 2017 FY 2016 FY 2015 FY 2014 Actuarially determined contribution $ 56,999,866 $ 53,264,009 $ 48,672,615 $ 48,616,677 $ 47,305,679 Contributions made in relation to the actuarially determined contribution 56,999,866 53,264,009 48,672,615 48,616,677 47,305,679 Contribution deficiency (excess) $ - $ - $ $ - $ Covered -payroll $ 166,670,939 $ 141,497,840 $ 133,083,231 $ 106,278,378 $ 93,705,765 Contributions as a percentage of covered -payroll 34.20% 37.64% 36.57% 45.74% 50.48% The following actuarial methods and assumptions were used to determine contribution rates for Fiscal Year 2023, 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, 2022 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 $2,079,777 City of Miami, Florida Schedule of Contributions - GESE September 30, 2023 Last 10 Fiscal Years (Unaudited) FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 Actuarially determined contribution $ 55,325,610 $ 55,807,861 $ 54,121,724 $ 49,923,146 $ 43,526,929 Contributions made in relation to the actuarially determined contribution 55,325,610 55,807,861 54,121,724 49,923,146 43,526,929 Contribution deficiency (excess) $ - $ - $ - $ - $ - Covered payroll $ 142,271,264 $ 131,715,858 $ 129,902,012 $ 122,643,648 $ 111,004,019 Contributions as a percentage of covered payroll 38.89% 42.37% 41.66% 40.71% 39.21% FY 2018 FY 2017 FY 2016 FY 2015 FY 2014 Actuarially determined contribution $ 40,879,285 $ 34,355,719 $ 32,881,500 $ 33,036,318 $ 30,710,096 Contributions made in relation to the actuarially determined contribution 40,879,285 34,355,719 32,881,500 33,036,318 30,710,096 Contribution deficiency (excess) $ - $ $ - $ - $ - Covered -payroll $ 111,127,482 $ 97,373,080 $ 81,069,095 $ 71,924,747 $ 66,370,246 Contributions as a percentage of covered -payroll 36.79% 35.28% 40.56% 45.93% 46.27% The following actuarial methods and assumptions were used to determine contribution rates for Fiscal Year 2023, 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, 2022 Entry Age Normal Level Percent, Closed 1 to 20 years 5-Year Smoothed Market 7.30% 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 149 City of Miami, Florida Schedule of Contributions - GESE Excess Benefit September 30, 2023 Last 10 Fiscal Years (Unaudited) FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 Actuarially determined contribution $ 234,885 $ 428,626 $ 616,889 $ 572,194 $ 631,547 Contributions made in relation to the actuarially determined contribution 237,284 365,619 364,502 417,755 477,892 Contribution deficiency (excess) $ (2,399) $ 63,007 $ 252,387 $ 154,439 $ 153,655 Covered payroll $ 142,271,264 $ 131,715,858 $ 129,902,012 $ 122,643,648 $ 111,004,019 Contributions as a percentage of covered payroll 0.17% 0.28% 0.28% 0.34% 0.43% FY 2018 FY 2017 FY 2016 FY 2015 FY 2014 Actuarially determined contribution $ 694,643 $ 850,429 $ 914,859 $ 947,666 $ 722,999 Contributions made in relation to the actuarially determined contribution 587,959 674,572 680,534 648,302 561,805 Contribution deficiency (excess) $ 106,684 $ 175,857 $ 234,325 $ 299,364 $ 161,194 Covered -payroll $ 111,127,482 $ 97,373,080 $ 81,069,095 $ 71,924,747 $ 66,370,246 Contributions as a percentage of covered -payroll 0.53% 0.69% 0.84% 0.90% 0.85% The following actuarial methods and assumptions were used to determine contribution rates for Fiscal Year 2023, 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, 2022 Entry Age Normal Level Dollar, Closed 8 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% 150 City of Miami, Florida Schedule of Contributions - GESE Staff Trust September 30, 2023 Last 10 Fiscal Years (Unaudited) FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 Actuarially determined contribution $ 257,061 $ 277,952 $ 254,056 $ 221,616 $ 232,280 Contributions made in relation to the actuarially determined contribution 257,061 277,952 254,056 221,616 232,280 Contribution deficiency (excess) $ - $ $ $ - $ Covered payroll $ 567,464 $ 433,844 $ 417,671 $ 387,761 $ 320,720 Contributions as a percentage of covered payroll 45.30% 64.07% 60.83% 57.15% 72.42% FY 2018 FY 2017 FY 2016 FY 2015 FY 2014 Actuarially determined contribution $ 233,242 $ 247,449 $ 269,054 $ 291,087 $ 291,968 Contributions made in relation to the actuarially determined contribution 233,242 247,449 269,054 291,087 291,968 Contribution deficiency (excess) $ - $ $ $ - $ Covered -payroll $ 280,425 $ 225,148 $ 172,459 $ 164,547 $ 298,958 Contributions as a percentage of covered -payroll 83.17% 109.91% 156.01% 176.90% 97.66% The following actuarial methods and assumptions were used to determine contribution rates for Fiscal Year 2023, 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, 2022 Entry Age Normal Level Dollar, Closed 1 to 20 years 3-Year Smoothed Market 7.30% 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, 2023 Last 10 Fiscal Years (Unaudited) 2023 2022 2021 FY 2020 FY 2019 Actuarially determined contribution $ 427,743 $ 794,439 $ 792,760 $ 567,727 $ 366,358 Contributions made in relation to the actuarially determined contribution 430,025 796,094 792,760 - 366,358 Contribution deficiency (excess) $ (2,282) $ (1,655) $ $ 567,727 $ Covered payroll $ 101,919 $ 100,461 $ 100,614 $ 100,585 $ Contributions as a percentage of covered payroll 421.93% 792.44% 787.92% 0.00% Not Applicable FY 2018 FY 2017 FY 2016 FY 2015 FY 2014 Actuarially determined contribution $ 463,386 $ 406,911 $ 469,450 $ 390,314 $ 570,348 Contributions made in relation to the actuarially determined contribution 553,471 406,911 860,089 551,222 Contribution deficiency (excess) $ (90,085) $ - $ (390,639) $ (160,908) $ 570,348 Covered -payroll $ - $ - $ 100,788 $ 103,194 $ 298,788 Contributions as a percentage of covered -payroll Not Applicable Not Applicable 853.36% 534.16% 0.00% The following actuarial methods and assumptions were used to determine contribution rates for Fiscal Year 2023, as reported in the Schedule of Contributions above: Valuation date: January 1, 2023 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, 2023 2022 2021 2020 2019 2018 2017 2016 2015 City of Miami, Florida Schedule of Investment Returns September 30, 2023 Last Nine Fiscal Years (Unaudited) Annual money -weighted rate of return, net of investment expense Firefighters and Police (FIPO) 10.13% (12.26%) 19.71% 6.17% 5.39% 7.48% 9.22% 9.70% 1.84% General and Sanitation Employees (GESE) 13.40% (15.00%) 21.40% 7.30% 7.10% 9.30% 13.20% 10.60% 0.23% (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) 15.30% (16.70%) 23.20% 10.40% 4.20% 11.20% 12.90% 11.80% -0.40% Elected Officers Retirement Trust (EORT) (1.09%) (0.25%) 0.89% 1.80% 1.74% 0.68% 0.81% 0.65% 0.93% ANNUAL COMPREHENSIVE FINANCIAL REPORT 2023 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 CRA) To account for revenues and expenditures to be used for special operations in the defined Southeast Overtown Park West Community Redevelopment Area. Homeless Program To account for the activities of the City's homeless program. Community Development To account for the proceeds from the Federal government under the U.S. Department of Housing and Urban Development. Housing Choice Vouchers To account for the monies received for administration and assistance to be provided in accordance with Section 8 of the U.S. Housing Act of 1937, as amended under the Choice Housing Voucher Program. State Housing Initiatives Program (SHIP) To account for the monies received from the State of Florida Housing Finance Corporation to used to provide home ownership and rental housing programs at the local level. Convention Center To account for the operations of the City of Miami/ University of Miami James L. Knight International Center and Parking Garage. 154 ANNUAL COMPREHENSIVE FINANCIAL REPORT 2023 SPECIAL REVENUE FUNDS Economic Development & Planning Services To account for the operations of the Economic Development and Planning Services. NET Offices To account for the operations of the City's Neighborhood Enhancement Teams (NET Offices). Parks & Recreation Services To account for the operations of the Parks and Recreation Services. Police Services To account for the proceeds of various grants from Local, State, and Federal Agencies that are expended for police activities. Law Enforcement Trust To account for confiscated monies awarded to the City for law enforcement related expenditures as stipulated by State Statutes. Public Works Services To account for the proceeds granted from Local and State Agencies to be used for maintenance of streets, highways, sidewalks and infrastructure. City Clerk Services To account for the operations of the Passport Facility, Municipal Archives and Records, and related programs. Fire Rescue Services To account for the grants revenues and expenditures which supplement the City's emergency Fire Rescue operations 155 ANNUAL COMPREHENSIVE FINANCIAL REPORT 2023 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. Mainstream Vouchers To account for the monies received from the Federal government under the U.S. Department of Housing and Urban Development. 156 ANNUAL COMPREHENSIVE FINANCIAL REPORT 2023 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. 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 Obligation Bonds To account for monies for payment of principal, interest, and other costs related to various special obligation and revenue bonds and loans. 157 ANNUAL COMPREHENSIVE FINANCIAL REPORT 2023 CAPITAL PROJECTS FUNDS Capital Projects Funds are used to account for the acquisition and construction of major capital facilities. 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. Special Obligation Bond Projects (S.O.B.) To account for the receipt and disbursement of bond proceeds from special obligation debt and loan agreements to be used for constructions and/or acquisition activities for the City. General Obligation Bonds Projects To account for the receipt and disbursement of bond proceeds from general obligation debt and loan agreements to be used for construction and/or acquisition activities of the City. Impact Fee To account for the collection of impact fees and the cost of capital improvement projects for the types of improvements for which the impact fees was imposed. 158 City of Miami, Florida Combining Balance Sheet Non -Major Governmental Funds September 30, 2023 Special Revenue Funds Homeless Omni CRA Midtown CRA SEOPW CRA Program Assets Pooled Cash, Cash Equivalents, and Investments $ 24,843,814 $ 4,890,535 $ 52,482,545 $ 65,215 Restricted Cash, Cash Equivalents, and Investments Receivables (Net of Allowance for Uncollectibles): Loans Receivable - - Accounts Receivable - 414,014 Lease Receivable - 255,236 - Property Tax - - Due From Other Governments - 226,808 59,965 Accrued Interest 176,619 63,655 301,283 Other Assets - 1,076,471 Total Assets $ 25,020,433 $ 4,954,190 $ 54,342,343 $ 539,194 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 Deferred Lease Revenue - 240,298 $ 215,422 $ - $ 2,404,746 14,961 $ 45,885 215,422 2,419,707 45,885 Total Deferred Inflows of Resources - 240,298 Fund Balances (Deficit): Non -Spendable Fund Balance Non -Spendable Spendable Fund Balance Restricted 24,805,011 4,954,190 51,682,338 408,821 Committed - 84,488 Assigned - - Unassigned (deficit) Total Fund Balances (Deficit) 24,805,011 4,954,190 51,682,338 493,309 Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficit) $ 25,020,433 $ 4,954,190 $ 54,342,343 $ 539,194 City of Miami, Florida Combining Balance Sheet Non -Major Governmental Funds September 30, 2023 Special Revenue Funds Housing Community Choice Development Vouchers SHIP Economic Development Convention & Planning Center Services Assets Pooled Cash, Cash Equivalents, and Investments $ 28,019,386 $ - $ 5,980,320 $ 97,176 $ 25,693,863 Restricted Cash, Cash Equivalents, and Investments - - - Receivables (Net of Allowance for Uncollectibles): Loans Receivable 1,794 - - - Accounts Receivable 500 - - 22,000 Lease Receivable - Property Tax - Due From Other Governments 756,334 223,500 Accrued Interest 19,183 2 17,898 Other Assets - - - Total Assets $ 28,797,197 $ 223,502 $ 5,998,218 $ 97,176 $ 25,715,863 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 Deferred Lease Revenue Total Deferred Inflows of Resources Fund Balances (Deficit): Non -Spendable Fund Balance Non -Spendable Spendable Fund Balance $ 784,803 4,224 4,465,326 32,651 73,890 $ 3,476 142,492 $ 1,539 $ $ 113,648 5,360,894 145,968 1,539 113,648 Restricted 7,444,540 77,534 5,996,679 47,898 Committed 15,991,763 - - 23,676,723 Assigned - - 97,176 1,877,594 Unassigned (deficit) - - - Total Fund Balances (Deficit) 23,436,303 77,534 5,996,679 97,176 25,602,215 Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficit) $ 28,797,197 $ 223,502 $ 5,998,218 $ 97,176 $ 25,715,863 160 City of Miami, Florida Combining Balance Sheet Non -Major Governmental Funds September 30, 2023 Special Revenue Funds Parks & Law Recreation Enforcement Public Works NET Offices Services Police Services Trust Services Assets Pooled Cash, Cash Equivalents, and Investments $ 20,354 $ 3,732,585 $ 4,578,913 $ 1,572,177 $ 5,141,110 Restricted Cash, Cash Equivalents, and Investments - - - Receivables (Net of Allowance for Uncollectibles): Loans Receivable - Accounts Receivable 228 969,182 53,410 Lease Receivable - - - Property Tax - - - Due From Other Governments 22,505 1,399,525 - Accrued Interest - 8,391 5,835 485 Other Assets - - - Total Assets $ 20,354 $ 3,755,318 $ 6,956,011 $ 1,578,012 $ 5,195,005 Liabilities, Fund Balances and Deferred Inflows of Resources Liabilities: Accounts Payable and Accrued Liaibilities $ 9,228 $ 92,338 $ 225,084 $ 27,611 $ 1,233,897 Other Liabilities - - - Due to Other Funds - 694,385 - Advances From Other Funds - - - Due to Other Governments - - - Unearned Revenue - - 68,340 Deposits 324 - - 112,413 - Total Liabilities 9,552 92,338 919,469 140,024 1,302,237 Deferred Inflows of Resources Unavailable Revenue - Other Deferred Lease Revenue Total Deferred Inflows of Resources Fund Balances (Deficit): Non -Spendable Fund Balance Non -Spendable Spendable Fund Balance - 482,000 - 482,000 Restricted 10,802 1,129,990 5,346,408 1,437,988 2,238,550 Committed 2,532,990 107,810 1,654,218 Assigned - 100,324 - Unassigned (deficit) Total Fund Balances (Deficit) 10,802 3,662,980 5,554,542 1,437,988 3,892,768 Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficit) $ 20,354 $ 3,755,318 $ 6,956,011 $ 1,578,012 $ 5,195,005 161 City of Miami, Florida Combining Balance Sheet Non -Major Governmental Funds September 30, 2023 Special Revenue Funds General Departmental City Clerk Fire Rescue Special Improvement Transportation Services Services Revenues Initiatives & Transit Assets Pooled Cash, Cash Equivalents, and Investments $ 1,705,791 $ 1,745,980 $ 3,728,037 $ 63,582,002 $ 1,299,767 Restricted Cash, Cash Equivalents, and Investments Receivables (Net of Allowance for Uncollectibles): Loans Receivable - Accounts Receivable 2,720 - 224,974 Lease Receivable - - - Property Tax - - - Due From Other Governments 9,326,206 274,102 67,378 - Accrued Interest 243 4,378 26,317 Other Assets Total Assets $ 1,705,791 $ 11,075,149 $ 4,006,517 $ 63,874,354 $ 1,326,084 Liabilities, Fund Balances and Deferred Inflows of Resources Liabilities: Accounts Payable and Accrued Liaibilities $ 6,277 $ 204,799 $ 123,638 $ 914,677 $ 1,326,084 Other Liabilities - - - Due to Other Funds 7,874,127 - - Advances From Other Funds - - - Due to Other Governments - Unearned Revenue - 152,526 - Deposits - - - Total Liabilities 6,277 8,078,926 276,164 914,677 1,326,084 Deferred Inflows of Resources Unavailable Revenue - Other Deferred Lease Revenue Total Deferred Inflows of Resources Fund Balances (Deficit): Non -Spendable Fund Balance Non -Spendable Spendable Fund Balance Restricted 2,824,926 395,418 47,227,386 Committed 1,699,514 171,297 3,323,197 15,705,238 Assigned - 11,738 Unassigned (deficit) - - 27,053 Total Fund Balances (Deficit) Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficit) 1,699,514 2,996,223 3,730,353 62,959,677 $ 1,705,791 $ 11,075,149 $ 4,006,517 $ 63,874,354 $ 1,326,084 162 Assets Pooled Cash, Cash Equivalents, and Investments Restricted Cash, Cash Equivalents, and Investments Receivables (Net of Allowance for Uncollectibles): Loans Receivable Accounts Receivable Lease 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 Deferred Lease Revenue Total Deferred Inflows of Resources Fund Balances (Deficit): Non -Spendable Fund Balance Non -Spendable Spendable Fund Balance Restricted Committed Assigned Unassigned (deficit) Total Fund Balances (Deficit) Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficit) City of Miami, Florida Combining Balance Sheet Non -Major Governmental Funds September 30, 2023 Special Revenue Funds Miami Ballpark Parking Facilities Liberty City Virginia Key Revitalization Beach Park Trust Trust Solid Waste Little Haiti Recycling Revitalization Trust Trust $ 8,293,895 2,222,478 $ 56,976 $ 789,035 $ 1,081,609 $ 6,385,895 240,963 118 35,212 1,528 5,959 26,018 $ 10,516,373 $ 298,057 $ 825,775 $ 1,087,568 $ 6,411,913 $ 66,759 $ 6,175 $ 2,841 106,500 $ 927 $ 626 66,759 6,175 109,341 927 626 10,449,614 291,882 716,434 1,000,000 86,641 6,411,287 10,449,614 $ 10,516,373 291,882 716,434 1,086,641 6,411,287 $ 298,057 $ 825,775 $ 1,087,568 $ 6,411,913 163 City of Miami, Florida Combining Balance Sheet Non -Major Governmental Funds September 30, 2023 Special Revenue Funds Debt Service Funds Bayfront Park CRA Other Land Mainstream General Special Acquisition Vouchers Total Special Obligation Obligation Trust Fund Program Revenue Bonds Bonds Assets Pooled Cash, Cash Equivalents, and Investments $ 1,961,000 $ 64,227 $ 247,812,207 $ - $ Restricted Cash, Cash Equivalents, and Investments - 35,212 14,520,155 2,521,095 Receivables (Net of Allowance for Uncollectibles): Loans Receivable - 1,794 - Accounts Receivable - 4,150,469 82,458 Lease Receivable - 255,236 - Property Tax - - 277,189 Due From Other Governments - 12,356,323 - Accrued Interest - 657,912 - Other Assets - 1,076,471 - Total Assets $ 1,961,000 $ 64,227 $ 266,345,624 $ 14,879,802 $ 2,521,095 Liabilities, Fund Balances and Deferred Inflows of Resources Liabilities: Accounts Payable and Accrued Liaibilities $ - $ - $ 7,810,480 $ - $ Other Liabilities - 4,224 - Due to Other Funds - 8,711,004 - Advances From Other Funds - - - Due to Other Governments - 4,465,326 - Unearned Revenue - 253,517 - Deposits - 308,088 - Total Liabilities - 21,552,639 Deferred Inflows of Resources Unavailable Revenue - Other - 482,000 277,189 Deferred Lease Revenue - 240,298 Total Deferred Inflows of Resources - 722,298 277,189 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) 64,227 1,961,000 1,000,000 173,332,130 14,602,613 67,624,672 - 2,086,832 - 27,053 2,521,095 1,961,000 64,227 244,070,687 14,602,613 2,521,095 $ 1,961,000 $ 64,227 $ 266,345,624 $ 14,879,802 $ 2,521,095 164 City of Miami, Florida Combining Balance Sheet Non -Major Governmental Funds September 30, 2023 Debt Service Funds Capital Projects Funds Community Special Special Obligation Total Debt Redevelopment Transportation Obligation Bonds Service Agency & Transit Bonds Projects Assets Pooled Cash, Cash Equivalents, and Investments $ $ - $ - $ - $ - Restricted Cash, Cash Equivalents, and Investments 4,295,099 21,336,349 1,813 21,432,263 5,268,238 Receivables (Net of Allowance for Uncollectibles): Loans Receivable - - - Accounts Receivable 416,666 499,124 - - Lease Receivable - - - Property Tax 277,189 - - Due From Other Governments - - - Accrued Interest - - 50,397 - Other Assets - - - Total Assets $ 4,711,765 $ 22,112,662 $ 1,813 $ 21,482,660 $ 5,268,238 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 Deferred Lease Revenue Total Deferred Inflows of Resources Fund Balances (Deficit): Non -Spendable Fund Balance Non -Spendable Spendable Fund Balance $ - $ - $ 875,590 $ 414,185 - - 4,487,110 277,189 277,189 Restricted 4,711,765 21,835,473 Committed - Assigned - Unassigned (deficit) Total Fund Balances (Deficit) 4,711,765 21,835,473 Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficit) $ 4,711,765 - 875,590 4,901,295 1,813 20,607,070 366,943 1,813 20,607,070 366,943 $ 22,112,662 $ 1,813 $ 21,482,660 $ 5,268,238 165 City of Miami, Florida Combining Balance Sheet Non -Major Governmental Funds September 30, 2023 Capital Projects Funds Total Non - General Major Obligation Total Capital Governmental Bonds Projects Impact Fee Projects Funds Assets Pooled Cash, Cash Equivalents, and Investments $ - $ - $ - $ 247,812,207 Restricted Cash, Cash Equivalents, and Investments 1,531,901 119,398,293 147,632,508 169,004,069 Receivables (Net of Allowance for Uncollectibles): Loans Receivable - - 1,794 Accounts Receivable 19,640 - 19,640 4,669,233 Lease Receivable - - 255,236 Property Tax - - 277,189 Due From Other Governments - - 12,356,323 Accrued Interest 15,013 530,056 595,466 1,253,378 Other Assets - - 1,076,471 Total Assets $ 1,566,554 $ 119,928,349 $ 148,247,614 $ 436,705,900 Liabilities, Fund Balances and Deferred Inflows of Resources Liabilities: Accounts Payable and Accrued Liaibilities $ 2,421,698 $ 15,019,312 $ 18,730,785 $ 26,541,265 Other Liabilities - - 4,224 Due to Other Funds - - 8,711,004 Advances From Other Funds 42,343,463 - 46,830,573 46,830,573 Due to Other Governments - - 4,465,326 Unearned Revenue - - 253,517 Deposits - - 308,088 Total Liabilities 44,765,161 15,019,312 65,561,358 87,113,997 Deferred Inflows of Resources Unavailable Revenue - Other - - 759,189 Deferred Lease Revenue - - 240,298 Total Deferred Inflows of Resources - - 999,487 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) 104,909,037 (43,198,607) (43,198,607) 104,909,037 1,000,000 125,884,863 321,052,466 67,624,672 2,086,832 (43,198,607) (43,171,554) 82,686,256 348,592,416 $ 1,566,554 $ 119,928,349 $ 148,247,614 $ 436,705,900 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, 2023 Special Revenue Funds Omni CRA Midtown CRA SEOPW CRA Homeless Program Revenues Property Taxes $ 33,559,256 $ 12,032,410 $ 42,857,943 $ - Licenses and Permits - - - Fines and Forfeitures - - - Intergovernmental Revenues - 1,867,394 3,162,715 Charges for Services 12,622 16,984 Investment Earnings 1,497,940 828,946 2,192,426 Impact Fees - - Other 921,923 1,431,705 Total Revenues 35,991,741 12,861,356 48,366,452 3,162,715 Expenditures Current Operating: General Government - - 3,254,678 Planning and Development - - - Community Development - - - Community Redevelopment Areas 33,371,526 11,094,041 24,947,448 Public Works Public Safety Public Facilities Parks and Recreation Debt Service: Principal - 267,709 - Interest and Other Charges - 12,291 - Capital Outlay 2,175,572 7,408,375 Total Expenditures 35,547,098 11,094,041 32,635,823 3,254,678 Excess (Deficiency) of Revenues Over (Under) Expenditures 444,643 1,767,315 15,730,629 (91,963) Other Financing Sources (Uses) Transfers In 120,324 - 32,046 Transfers Out (10,912,971) (12,600,353) (11,470,873) (23,085) Issuance of Debt - - - Issuance of Lease - 2,458,138 - Total Other Financing Sources (Uses) (10,792,647) (12,600,353) (9,012,735) 8,961 Net Changes in Fund Balances (Deficit) (10,348,004) (10,833,038) 6,717,894 (83,002) Fund Balances (Deficit) - Beginning 35,153,015 15,787,228 44,964,444 576,311 Fund Balances (Deficit) - Ending $ 24,805,011 $ 4,954,190 $ 51,682,338 $ 493,309 167 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, 2023 Special Revenue Funds Community Housing Choice Development Vouchers SHIP Convention Center Revenues Property Taxes $ - $ $ - $ - Licenses and Permits - Fines and Forfeitures - Intergovernmental Revenues 29,972,477 2,567,723 2,258,464 366,716 Charges for Services 255,400 - - Investment Earnings 122,275 137,746 - lmpact Fees - - - Other 738,852 31,327 390,183 Total Revenues 31,089,004 2,599,050 2,786,393 366,716 Expenditures Current Operating: General Government Planning and Development - - Community Development 26,651,605 2,589,215 1,340,975 Community Redevelopment Areas - - - Public Works - - - Public Safety Public Facilities - - 315,740 Parks and Recreation Debt Service: Principal - - - Interest and Other Charges - - - Capital Outlay 3,323,240 Total Expenditures 29,974,845 2,589,215 1,340,975 315,740 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,114,159 9,835 1,445,418 50,976 Other Financing Sources (Uses) Transfers In Transfers Out Issuance of Debt Issuance of Lease Total Other Financing Sources (Uses) Net Changes in Fund Balances (Deficit) Fund Balances (Deficit) - Beginning 200,786 200,786 1,314,945 9,835 22,121,358 1,445,418 50,976 67,699 4,551,261 46,200 Fund Balances (Deficit) - Ending $ 23,436,303 $ 77,534 $ 5,996,679 $ 97,176 168 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, 2023 Revenues Property Taxes Licenses and Permits Fines and Forfeitures Intergovernmental Revenues Charges for Services Investment Earnings Impact Fees Other Total Revenues Special Revenue Funds Economic Parks & Development & Recreation Planning Services NET Offices Services Police Services $ - $ $ - $ 215,790 172,981 310,702 6,088,351 17,663 2,656 2,322,541 2,923 8,255,241 415,452 31,739 3,900 8,629,338 504,269 8,706,332 Expenditures Current Operating: General Government - - - Planning and Development 5,229,377 Community Development - - - Community Redevelopment Areas - - - Public Works 311,862 - - Public Safety - - 10,046,621 Public Facilities - - Parks and Recreation - 178,820 Debt Service: Principal - - - Interest and Other Charges - - - Capital Outlay - 79,544 752,723 Total Expenditures 5,541,239 258,364 10,799,344 Excess (Deficiency) of Revenues Over (Under) Expenditures 3,088,099 245,905 (2,093,012) Other Financing Sources (Uses) Transfers In 9 3,691,316 Transfers Out (4,482,000) - (144,268) Issuance of Debt - - - Issuance of Lease - - - Total Other Financing Sources (Uses) (4,482,000) 9 3,547,048 Net Changes in Fund Balances (Deficit) Fund Balances (Deficit) - Beginning Fund Balances (Deficit) - Ending (1,393,901) 26,996,116 245,914 1,454,036 10,802 3,417,066 4,100,506 $ 25,602,215 $ 10,802 $ 3,662,980 $ 5,554,542 169 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, 2023 Special Revenue Funds Law Enforcement Trust Public Works Fire Rescue Services City Clerk Services Services Revenues Property Taxes $ - $ $ - $ - Licenses and Permits - 6,152,504 - - Fines and Forfeitures 216,819 - - Intergovernmental Revenues - - 12,321,724 Charges for Services - 189,390 8,574 Investment Earnings 22,669 - 1,826 Impact Fees - - - Other - - 1,750 Total Revenues 239,488 6,152,504 189,390 12,333,874 Expenditures Current Operating: General Government - 162,416 - Planning and Development - - - Community Development - - - Community Redevelopment Areas - - - Public Works - 5,245,499 Public Safety 170,840 - 11,082,832 Public Facilities - - - Parks and Recreation - - - Debt Service: Principal - - - Interest and Other Charges - - - Capital Outlay - - 2,211,738 Total Expenditures 170,840 5,245,499 162,416 13,294,570 Excess (Deficiency) of Revenues Over (Under) Expenditures 68,648 907,005 26,974 (960,696) Other Financing Sources (Uses) Transfers In Transfers Out Issuance of Debt Issuance of Lease Total Other Financing Sources (Uses) Net Changes in Fund Balances (Deficit) Fund Balances (Deficit) - Beginning Fund Balances (Deficit) - Ending 13,152 48,000 1,126,548 (1,261,000) - (1,772) 13,152 (1,261,000) 81,800 (353,995) 1,356,188 4,246,763 48,000 1,124,776 74,974 164,080 1,624,540 2,832,143 $ 1,437,988 $ 3,892,768 $ 1,699,514 $ 2,996,223 170 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, 2023 Special Revenue Funds Departmental General Special Improvement Transportation & Miami Ballpark Revenues Initiatives Transit Parking Facilities Revenues Property Taxes $ - $ $ - $ - Licenses and Permits - - - Fines and Forfeitures - 1,871,555 - - Intergovernmental Revenues 394,742 94,508 - - Charges for Services 4,050 - 6,147,459 Investment Earnings 46,738 43,050 28,607 Impact Fees - Other 449,251 48,118 Total Revenues 894,781 2,057,231 28,607 6,147,459 Expenditures Current Operating: General Government 258,584 6,006,851 Planning and Development - 2,301,179 Community Development - Community Redevelopment Areas - - - Public Works 1,422,472 33,117 15,111,607 - Public Safety - - - Public Facilities - - 2,331,925 Parks and Recreation - - - Debt Service: Principal - - - Interest and Other Charges - - - Capital Outlay - 129,510 - - Total Expenditures 1,681,056 8,470,657 15,111,607 2,331,925 Excess (Deficiency) of Revenues Over (Under) Expenditures (786,275) (6,413,426) (15,083,000) 3,815,534 Other Financing Sources (Uses) Transfers In - 53,606,000 17,394,458 Transfers Out - (1,426,037) (5,485,000) (2,000,000) Issuance of Debt - - - Issuance of Lease - - - Total Other Financing Sources (Uses) - 52,179,963 11,909,458 (2,000,000) Net Changes in Fund Balances (Deficit) (786,275) 45,766,537 (3,173,542) 1,815,534 Fund Balances (Deficit) - Beginning 4,516,628 17,193,140 3,173,542 8,634,080 Fund Balances (Deficit) - Ending $ 3,730,353 $ 62,959,677 $ - $ 10,449,614 171 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, 2023 Special Revenue Funds Liberty City Little Haiti Revitalization Virginia Key Solid Waste Revitalization Trust Beach Park Trust Recycling Trust Trust Revenues Property Taxes $ - $ $ - $ - Licenses and Permits - - - Fines and Forfeitures - - - Intergovernmental Revenues 744,883 600,000 - 199,000 Charges for Services - 350,352 - - Investment Earnings - 14,929 47,139 271,187 Impact Fees - Other 207,000 745,121 Total Revenues 951,883 1,710,402 47,139 470,187 Expenditures Current Operating: General Government - - - Planning and Development - - - Community Development - - - Community Redevelopment Areas 901,093 - 130,695 Public Works - 11,427 - Public Safety - - - Public Facilities - - - Parks and Recreation - 1,455,309 - - Debt Service: Principal - 43,653 - - Interest and Other Charges - 3,267 - - Capital Outlay - 23,294 - - Total Expenditures 901,093 1,525,523 11,427 130,695 Excess (Deficiency) of Revenues Over (Under) Expenditures 50,790 184,879 35,712 339,492 Other Financing Sources (Uses) Transfers In 60,000 Transfers Out Issuance of Debt Issuance of Lease Total Other Financing Sources (Uses) Net Changes in Fund Balances (Deficit) Fund Balances (Deficit) - Beginning Fund Balances (Deficit) - Ending 60,000 110,790 184,879 35,712 339,492 181,092 531,555 1,050,929 6,071,795 $ 291,882 $ 716,434 $ 1,086,641 $ 6,411,287 172 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, 2023 Special Revenue Funds Bayfront Park Land Acquisition Mainstream Trust Fund Vouchers Program Total Special Revenue Revenues Property Taxes $ - $ $ 88,449,609 Licenses and Permits - 6,541,275 Fines and Forfeitures - 2,088,374 Intergovernmental Revenues - 530,214 63,646,503 Charges for Services - 13,506,297 Investment Earnings - 5,289,873 Impact Fees - - Other - 7,294,594 Total Revenues - 530,214 186,816,525 Expenditures Current Operating: General Government - 9,682,529 Planning and Development - 7,530,556 Community Development - 490,185 31,071,980 Community Redevelopment Areas - 70,444,803 Public Works - 22,135,984 Public Safety - 21,300,293 Public Facilities - 2,647,665 Parks and Recreation - 1,634,129 Debt Service: Principal - 311,362 Interest and Other Charges - 15,558 Capital Outlay - 16,103,996 Total Expenditures - 490,185 182,878,855 Excess (Deficiency) of Revenues Over (Under) Expenditures - 40,029 3,937,670 Other Financing Sources (Uses) Transfers In 101,000 76,393,639 Transfers Out - (49,807,359) Issuance of Debt - - Issuance of Lease - 2,458,138 Total Other Financing Sources (Uses) 101,000 29,044,418 Net Changes in Fund Balances (Deficit) Fund Balances (Deficit) - Beginning 101,000 1,860,000 40,029 32,982,088 24,198 211,088,599 Fund Balances (Deficit) - Ending $ 1,961,000 $ 64,227 $ 244,070,687 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, 2023 Debt Service Funds General Obligation CRA Other Special Special Obligation Total Debt Bonds Obligation Bonds Bonds Service Revenues Property Taxes $ 22,791,118 $ $ - $ 22,791,118 Licenses and Permits - Fines and Forfeitures - Intergovernmental Revenues - 5,000,000 5,000,000 Charges for Services - - Investment Earnings - 94 94 Impact Fees - - Other - 40 - 40 Total Revenues 22,791,118 40 5,000,094 27,791,252 Expenditures Current Operating: General Government 2,500 - 2,500 Planning and Development - - Community Development - - Community Redevelopment Areas - - Public Works - - Public Safety - - Public Facilities - - Parks and Recreation - - Debt Service: Principal 8,255,000 5,215,000 57,300,798 70,770,798 Interest and Other Charges 1,668,416 2,113,596 11,933,501 15,715,513 Capital Outlay - - Total Expenditures 9,925,916 7,328,596 69,234,299 86,488,811 Excess (Deficiency) of Revenues Over (Under) Expenditures 12,865,202 (7,328,556) (64,234,205) (58,697,559) Other Financing Sources (Uses) Transfers In - 7,327,867 36,005,000 43,332,867 Transfers Out - - Issuance of Debt - 26,460,000 26,460,000 Issuance of Lease - - Total Other Financing Sources (Uses) - 7,327,867 62,465,000 69,792,867 Net Changes in Fund Balances (Deficit) 12,865,202 (689) (1,769,205) 11,095,308 Fund Balances (Deficit) - Beginning 1,737,411 2,521,784 6,480,970 10,740,165 Fund Balances (Deficit) - Ending $ 14,602,613 $ 2,521,095 $ 4,711,765 $ 21,835,473 174 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, 2023 Capital Projects Funds Community Redevelopment Transportation & Special Obligation General Obligation Agency Transit Bonds Projects Bonds Projects Revenues Property Taxes $ - $ $ - $ Licenses and Permits Fines and Forfeitures - - Intergovernmental Revenues - - Charges for Services - - Investment Earnings - 611,418 109,854 Impact Fees Other Total Revenues - 611,418 109,854 Expenditures Current Operating: General Government - - 34,947 Planning and Development - - Community Development - - 5,396,266 Community Redevelopment Areas 9,844,841 - Public Works - 84,277 10,938 Public Safety - - Public Facilities - - Parks and Recreation - - 338,445 Debt Service: Principal - - Interest and Other Charges - - Capital Outlay - 1,871,309 1,093,476 6,784,479 Total Expenditures 9,844,841 1,955,586 1,104,414 12,554,137 Excess (Deficiency) of Revenues Over (Under) Expenditures (9,844,841) (1,344,168) (994,560) (12,554,137) Other Financing Sources (Uses) Transfers In - 15,151,432 23,058 Transfers Out - (6,503,783) - (36,916) Issuance of Debt Issuance of Lease Total Other Financing Sources (Uses) - 8,647,649 23,058 (36,916) Net Changes in Fund Balances (Deficit) (9,844,841) 7,303,481 (971,502) (12,591,053) Fund Balances (Deficit) - Beginning 9,846,654 13,303,589 1,338,445 (30,607,554) Fund Balances (Deficit) - Ending $ 1,813 $ 20,607,070 $ 366,943 $ (43,198,607) 175 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, 2023 Capital Projects Funds Impact Fee Total Non -Major Total Capital Governmental Projects Funds Revenues Property Taxes $ - $ $ 111,240,727 Licenses and Permits - 6,541,275 Fines and Forfeitures - 2,088,374 Intergovernmental Revenues - 68,646,503 Charges for Services - 13,506,297 Investment Earnings 4,339,851 5,061,123 10,351,090 Impact Fees 26,752,331 26,752,331 26,752,331 Other - 7,294,634 Total Revenues 31,092,182 31,813,454 246,421,231 Expenditures Current Operating: General Government 43,015 77,962 9,762,991 Planning and Development - 7,530,556 Community Development - 5,396,266 36,468,246 Community Redevelopment Areas - 9,844,841 80,289,644 Public Works 88,958 184,173 22,320,157 Public Safety 918,533 918,533 22,218,826 Public Facilities - 2,647,665 Parks and Recreation 11,515,294 11,853,739 13,487,868 Debt Service: Principal - 71,082,160 Interest and Other Charges - 15,731,071 Capital Outlay 19,822,382 29,571,646 45,675,642 Total Expenditures 32,388,182 57,847,160 327,214,826 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,296,000) (26,033,706) (80,793,595) Other Financing Sources (Uses) Transfers In 94,947 15,269,437 134,995,943 Transfers Out (95,242) (6,635,941) (56,443,300) Issuance of Debt - 26,460,000 Issuance of Lease - 2,458,138 Total Other Financing Sources (Uses) (295) 8,633,496 107,470,781 Net Changes in Fund Balances (Deficit) (1,296,295) (17,400,210) 26,677,186 Fund Balances (Deficit) - Beginning 106,205,332 100,086,466 321,915,230 Fund Balances (Deficit) - Ending $ 104,909,037 $ 82,686,256 $ 348,592,416 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, 2023 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Property Taxes $ 33,415,862 $ 33,415,862 $ 33,559,256 $ 143,394 Charges for Services - 12,622 12,622 Investment Earnings - 1,497,940 1,497,940 Other 47,044,705 47,044,705 921,923 (46,122,782) Total Revenues 80,460,567 80,460,567 35,991,741 (44,468,826) Expenditures: Community Redevelopment Areas 68,445,705 68,445,705 33,371,526 35,074,179 Capital Outlay 25,000 25,000 2,175,572 (2,150,572) Total Expenditures 68,470,705 68,470,705 35,547,098 32,923,607 Excess (Deficiency) of Revenues Over (Under) Expenditures 11,989,862 11,989,862 444,643 (11,545,219) Other Financing Sources (Uses): Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balance (11,989,862) (11,989,862) (11,989,862) (11,989,862) 120,324 120,324 (10,912,971) 1,076,891 (10,792,647) 1,197,215 (10,348,004) (10,348,004) Fund Balance - Beginning of Year - - 35,153,015 35,153,015 Fund Balance - End of Year $ $ - $ 24,805,011 $ 24,805,011 177 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, 2023 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Property Taxes $ 12,032,410 $ 12,032,410 $ 12,032,410 $ - Investment Earnings - 828,946 828,946 Other 15,882,606 15,882,606 - (15,882,606) Total Revenues 27,915,016 27,915,016 12,861,356 (15,053,660) Expenditures: Community Redevelopment Areas 27,915,016 27,915,016 11,094,041 16,820,975 Total Expenditures 27,915,016 27,915,016 11,094,041 16,820,975 Excess (Deficiency) of Revenues Over (Under) Expenditures - 1,767,315 1,767,315 Other Financing Sources (Uses): Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balance (12,600,353) (12,600,353) (12,600,353) (12,600,353) (10,833,038) (10,833,038) Fund Balance - Beginning of Year - 15,787,228 15,787,228 Fund Balance - End of Year $ $ $ 4,954,190 $ 4,954,190 178 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, 2023 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Property Taxes $ 42,846,333 $ 42,846,333 $ 42,857,943 $ 11,610 Intergovernmental Revenues - 1,867,394 1,867,394 Charges for Services - 16,984 16,984 Investment Earnings - 2,192,426 2,192,426 Other 49,597,411 49,597,411 1,431,705 (48,165,706) Total Revenues 92,443,744 92,443,744 48,366,452 (44,077,292) Expenditures: Community Redevelopment Areas 61,966,199 61,966,199 24,947,448 37,018,751 Lease Principal - 267,709 267,709 Lease Interest - 12,291 12,291 Capital Outlay 15,379,842 15,379,842 7,408,375 7,971,467 Total Expenditures 77,346,041 77,346,041 32,635,823 44,710,218 Excess (Deficiency) of Revenues Over (Under) Expenditures 15,097,703 15,097,703 15,730,629 632,926 Other Financing Sources (Uses): Transfers Out (15,097,703) (15,097,703) (11,470,873) 3,626,830 Issuance of Lease - 2,458,138 2,458,138 Total Other Financing Sources (Uses) (15,097,703) (15,097,703) (9,012,735) 6,084,968 Net Change in Fund Balance - 6,717,894 6,717,894 Fund Balance - Beginning of Year - 44,964,444 44,964,444 Fund Balance - End of Year $ $ - $ 51,682,338 $ 51,682,338 179 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, 2023 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 2,460,000 $ 2,480,000 $ 3,162,715 $ 682,715 Other 422,000 614,000 - (614,000) Total Revenues 2,882,000 3,094,000 3,162,715 68,715 Expenditures: General Government 2,882,000 3,094,000 3,254,678 (160,678) Total Expenditures 2,882,000 3,094,000 3,254,678 (160,678) Excess (Deficiency) of Revenues Over (Under) Expenditures (91,963) (91,963) Other Financing Sources (Uses): Transfers In - 32,046 32,046 Transfers Out - (23,085) (23,085) Total Other Financing Sources (Uses) - 8,961 8,961 Net Change in Fund Balance (83,002) (83,002) Fund Balance - Beginning of Year - 576,311 576,311 Fund Balance - End of Year $ $ - $ 493,309 $ 493,309 180 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, 2023 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 24,721,000 $ 24,721,000 $ 29,972,477 $ 5,251,477 Charges for Services - 255,400 255,400 Investment Earnings - 122,275 122,275 Other 56,133,000 55,726,000 738,852 (54,987,148) Total Revenues 80,854,000 80,447,000 31,089,004 (49,357,996) Expenditures: Community Development 80,788,000 80,391,000 26,651,605 53,739,395 Capital Outlay 166,000 156,000 3,323,240 (3,167,240) Total Expenditures 80,954,000 80,547,000 29,974,845 50,572,155 Excess (Deficiency) of Revenues Over (Under) Expenditures (100,000) (100,000) 1,114,159 1,214,159 Other Financing Sources (Uses): Transfers In 419,000 419,000 200,786 (218,214) Transfers Out (319,000) (319,000) - 319,000 Total Other Financing Sources (Uses) 100,000 100,000 200,786 100,786 Net Change in Fund Balance - - 1,314,945 1,314,945 Fund Balance - Beginning of Year - 22,121,358 22,121,358 Fund Balance - End of Year $ $ - $ 23,436,303 $ 23,436,303 181 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, 2023 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 2,386,000 $ 2,793,000 $ 2,567,723 $ (225,277) Other - 31,327 31,327 Total Revenues 2,386,000 2,793,000 2,599,050 (193,950) Expenditures: Community Development 2,386,000 2,793,000 2,589,215 203,785 Total Expenditures 2,386,000 2,793,000 2,589,215 203,785 Excess (Deficiency) of Revenues Over (Under) Expenditures Net Change in Fund Balance 9,835 9,835 9,835 9,835 Fund Balance - Beginning of Year - 67,699 67,699 Fund Balance - End of Year S $ - $ 77,534 $ 77,534 182 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, 2023 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 607,000 $ 607,000 $ 530,214 $ (76,786) Total Revenues 607,000 607,000 530,214 (76,786) Expenditures: Community Development 607,000 607,000 490,185 116,815 Total Expenditures 607,000 607,000 490,185 116,815 Excess (Deficiency) of Revenues Over (Under) Expenditures Net Change in Fund Balance 40,029 40,029 40,029 40,029 Fund Balance - Beginning of Year - - 24,198 24,198 Fund Balance - End of Year $ $ - $ 64,227 $ 64,227 183 City of Miami, Florida Schedule of Revenue, Expenditures and Changes In Fund Balance Budget and Actual - SHIP For The Fiscal Year Ended September 30, 2023 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 2,748,000 $ 2,748,000 $ 2,258,464 $ (489,536) Investment Earnings - - 137,746 137,746 Other 3,044,000 3,044,000 390,183 (2,653,817) Total Revenues 5,792,000 5,792,000 2,786,393 (3,005,607) Expenditures: Community Development 5,792,000 5,792,000 1,340,975 4,451,025 Total Expenditures 5,792,000 5,792,000 1,340,975 4,451,025 Excess (Deficiency) of Revenues Over (Under) Expenditures Net Change in Fund Balance 1,445,418 1,445,418 1,445,418 1,445,418 Fund Balance - Beginning of Year - - 4,551,261 4,551,261 Fund Balance - End of Year S $ - $ 5,996,679 $ 5,996,679 184 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, 2023 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ $ - $ 366,716 $ 366,716 Charges for Services - 400,000 - (400,000) Other 13,000 13,000 - (13,000) Total Revenues 13,000 413,000 366,716 (46,284) Expenditures: Public Facilities 13,000 413,000 315,740 97,260 Total Expenditures 13,000 413,000 315,740 97,260 Excess (Deficiency) of Revenues Over (Under) Expenditures Net Change in Fund Balance 50,976 50,976 50,976 50,976 Fund Balance - Beginning of Year - 46,200 46,200 Fund Balance - End of Year $ $ - $ 97,176 $ 97,176 185 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, 2023 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Licenses and Permits $ 500,000 $ 500,000 $ 215,790 $ (284,210) Charges for Services 2,932,000 2,932,000 6,088,351 3,156,351 Investment Earnings - 2,656 2,656 Other 25,847,000 29,316,000 2,322,541 (26,993,459) Total Revenues 29,279,000 32,748,000 8,629,338 (24,118,662) Expenditures: General Government 136,000 139,000 - 139,000 Planning and Development 24,491,000 27,007,000 5,229,377 21,777,623 Public Works - 311,862 (311,862) Capital Outlay 170,000 170,000 - 170,000 Total Expenditures 24,797,000 27,316,000 5,541,239 21,774,761 Excess (Deficiency) of Revenues Over (Under) Expenditures 4,482,000 5,432,000 3,088,099 (2,343,901) Other Financing Sources (Uses): Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balance (4,482,000) (5,432,000) (4,482,000) 950,000 (4,482,000) (5,432,000) (4,482,000) 950,000 (1,393,901) (1,393,901) Fund Balance - Beginning of Year - 26,996,116 26,996,116 Fund Balance - End of Year $ $ - $ 25,602,215 $ 25,602,215 186 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, 2023 Revenues: l'otal Revenues Expenditures: Excess (Deficiency) of Revenues Over (Under) Expenditures Net Change in Fund Balance Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Fund Balance - Beginning of Year - - 10,802 10,802 Fund Balance - End of Year S $ - $ 10,802 $ 10,802 187 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, 2023 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Licenses and Permits S 83,000 $ 83,000 $ 172,981 $ 89,981 Intergovernmental Revenues 230,000 230,000 310,702 80,702 Charges for Services - 17,663 17,663 Other 448,000 3,420,000 2,923 (3,417,077) Total Revenues 761,000 3,733,000 504,269 (3,228,731) Expenditures: Parks and Recreation 761,000 3,733,000 178,820 3,554,180 Capital Outlay - 79,544 (79,544) Total Expenditures 761,000 3,733,000 258,364 3,474,636 Excess (Deficiency) of Revenues Over (Under) Expenditures 245,905 245,905 Other Financing Sources (Uses): Transfers In - - 9 9 Total Other Financing Sources (Uses) - - 9 9 Net Change in Fund Balance 245,914 245,914 Fund Balance - Beginning of Year - 3,417,066 3,417,066 Fund Balance - End of Year $ $ - $ 3,662,980 $ 3,662,980 188 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, 2023 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 9,814,000 $ 9,814,000 $ 8,255,241 $ (1,558,759) Charges for Services 300,000 429,000 415,452 (13,548) Investment Earnings - 31,739 31,739 Other 3,948,000 5,501,000 3,900 (5,497,100) Total Revenues 14,062,000 15,744,000 8,706,332 (7,037,668) Expenditures: Public Safety 15,323,000 18,695,000 10,046,621 8,648,379 Capital Outlay 736,000 736,000 752,723 (16,723) Total Expenditures 16,059,000 19,431,000 10,799,344 8,631,656 Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balance (1,997,000) (3,687,000) 1,997,000 3,687,000 1,997,000 3,687,000 (2,093,012) 1,593,988 3,691,316 4,316 (144,268) (144,268) 3,547,048 (139,952) 1,454,036 1,454,036 Fund Balance - Beginning of Year - 4,100,506 4,100,506 Fund Balance - End of Year $ $ $ 5,554,542 $ 5,554,542 189 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, 2023 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Fines and Forfeitures $ 350,000 $ 350,000 $ 216,819 $ (133,181) Investment Earnings - 22,669 22,669 Other 1,027,000 1,356,000 - (1,356,000) Total Revenues 1,377,000 1,706,000 239,488 (1,466,512) Expenditures: Public Safety 1,346,000 1,675,000 170,840 1,504,160 Capital Outlay 31,000 31,000 - 31,000 Total Expenditures 1,377,000 1,706,000 170,840 1,535,160 Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers In Total Other Financing Sources (Uses) Net Change in Fund Balance 68,648 68,648 13,152 13,152 13,152 13,152 81,800 81,800 Fund Balance - Beginning of Year - 1,356,188 1,356,188 Fund Balance - End of Year $ $ - $ 1,437,988 $ 1,437,988 190 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, 2023 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Licenses and Permits $ 4,787,000 $ 4,787,000 $ 6,152,504 $ 1,365,504 Other 3,135,000 4,247,000 - (4,247,000) Total Revenues 7,922,000 9,034,000 6,152,504 (2,881,496) Expenditures: Public Works 7,922,000 7,773,000 5,245,499 2,527,501 Total Expenditures 7,922,000 7,773,000 5,245,499 2,527,501 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,261,000 Other Financing Sources (Uses): Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balance 907,005 (353,995) (1,261,000) (1,261,000) (1,261,000) (1,261,000) (353,995) (353,995) Fund Balance - Beginning of Year - 4,246,763 4,246,763 Fund Balance - End of Year $ $ - $ 3,892,768 $ 3,892,768 191 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, 2023 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Charges for Services $ 175,000 $ 175,000 $ 189,390 $ 14,390 Other 1,671,000 1,625,000 - (1,625,000) Total Revenues 1,846,000 1,800,000 189,390 (1,610,610) Expenditures: General Government 1,894,000 1,848,000 162,416 1,685,584 Total Expenditures 1,894,000 1,848,000 162,416 1,685,584 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) 26,974 74,974 48,000 48,000 48,000 48,000 48,000 48,000 74,974 74,974 Fund Balance - Beginning of Year - 1,624,540 1,624,540 Fund Balance - End of Year $ $ - $ 1,699,514 $ 1,699,514 192 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, 2023 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 29,843,000 $ 33,372,323 $ 12,321,724 $ (21,050,599) Charges for Services - 8,574 8,574 Investment Earnings - 1,826 1,826 Other 16,908,000 5,886,000 1,750 (5,884,250) Total Revenues 46,751,000 39,258,323 12,333,874 (26,924,449) Expenditures: Public Safety 25,545,000 16,834,655 11,082,832 5,751,823 Capital Outlay 22,208,000 23,661,000 2,211,738 21,449,262 Total Expenditures 47,753,000 40,495,655 13,294,570 27,201,085 Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balance (1,002,000) (1,237,332) 1,002,000 1,237,332 1,002,000 1,237,332 (960,696) 276,636 1,126,548 (110,784) (1,772) (1,772) 1,124,776 (112,556) 164,080 164,080 Fund Balance - Beginning of Year - 2,832,143 2,832,143 Fund Balance - End of Year $ $ $ 2,996,223 $ 2,996,223 193 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, 2023 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 260,000 $ 260,000 $ 394,742 $ 134,742 Charges for Services - - 4,050 4,050 Investment Earnings - - 46,738 46,738 Other 4,070,000 5,317,000 449,251 (4,867,749) Total Revenues 4,330,000 5,577,000 894,781 (4,682,219) Expenditures: General Government 1,845,000 3,092,000 258,584 2,833,416 Public Works 2,485,000 2,485,000 1,422,472 1,062,528 Total Expenditures 4,330,000 5,577,000 1,681,056 3,895,944 Excess (Deficiency) of Revenues Over (Under) Expenditures Net Change in Fund Balance (786,275) (786,275) (786,275) (786,275) Fund Balance - Beginning of Year - - 4,516,628 4,516,628 Fund Balance - End of Year $ $ - $ 3,730,353 $ 3,730,353 194 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, 2023 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Fines and Forfeitures $ 1,000,000 $ 1,000,000 $ 1,871,555 $ 871,555 Intergovernmental Revenues 358,000 358,000 94,508 (263,492) Investment Earnings - 43,050 43,050 Other 10,884,000 15,941,000 48,118 (15,892,882) Total Revenues 12,242,000 17,299,000 2,057,231 (15,241,769) Expenditures: General Government 9,546,000 64,239,000 6,006,851 58,232,149 Planning and Development 6,650,000 7,807,000 2,301,179 5,505,821 Public Works 252,000 252,000 33,117 218,883 Capital Outlay 2,000 2,000 129,510 (127,510) Total Expenditures 16,450,000 72,300,000 8,470,657 63,829,343 Excess (Deficiency) of Revenues Over (Under) Expenditures (4,208,000) (55,001,000) (6,413,426) 48,587,574 Other Financing Sources (Uses): Transfers In 4,208,000 55,001,000 53,606,000 (1,395,000) Transfers Out - (1,426,037) (1,426,037) Total Other Financing Sources (Uses) 4,208,000 55,001,000 52,179,963 (2,821,037) Net Change in Fund Balance - 45,766,537 45,766,537 Fund Balance - Beginning of Year - - 17,193,140 17,193,140 Fund Balance - End of Year $ $ - $ 62,959,677 $ 62,959,677 195 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, 2023 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Investment Earnings $ $ - $ 28,607 $ 28,607 Other 4,531,000 3,174,000 - (3,174,000) Total Revenues 4,531,000 3,174,000 28,607 (3,145,393) Expenditures: Public Works 14,015,000 13,551,000 15,111,607 (1,560,607) Total Expenditures 14,015,000 13,551,000 15,111,607 (1,560,607) Excess (Deficiency) of Revenues Over (Under) Expenditures (9,484,000) (10,377,000) (15,083,000) (4,706,000) Other Financing Sources (Uses): Transfers In Transfers Out Total Other Financing Sources (Uses) 14,969,000 15, 862,000 17,394,458 1,532,458 (5,485,000) (5,485,000) (5,485,000) - 9,484,000 10,377,000 11,909,458 1,532,458 Net Change in Fund Balance - (3,173,542) (3,173,542) Fund Balance - Beginning of Year - 3,173,542 3,173,542 Fund Balance - End of Year 196 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, 2023 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Charges for Services $ 5,549,000 $ 5,549,000 $ 6,147,459 $ 598,459 Other 7,100,000 10,734,000 - (10,734,000) Total Revenues 12,649,000 16,283,000 6,147,459 (10,135,541) Expenditures: Public Facilities 10,649,000 14,283,000 2,331,925 11,951,075 Total Expenditures 10,649,000 14,283,000 2,331,925 11,951,075 Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balance 2,000,000 2,000,000 3,815,534 1,815,534 (2,000,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000) 1,815,534 1,815,534 Fund Balance - Beginning of Year - - 8,634,080 8,634,080 Fund Balance - End of Year $ $ - $ 10,449,614 $ 10,449,614 197 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, 2023 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 500,000 $ 960,000 $ 744,883 $ (215,117) Other 130,707 130,707 207,000 76,293 Total Revenues 630,707 1,090,707 951,883 (138,824) Expenditures: Community Redevelopment Areas 630,707 1,090,707 901,093 189,614 Total Expenditures 630,707 1,090,707 901,093 189,614 Excess (Deficiency) of Revenues Over (Under) Expenditures 50,790 50,790 Other Financing Sources (Uses): Transfers In - 60,000 60,000 Total Other Financing Sources (Uses) - 60,000 60,000 Net Change in Fund Balance 110,790 110,790 Fund Balance - Beginning of Year - - 181,092 181,092 Fund Balance - End of Year $ $ - $ 291,882 $ 291,882 198 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, 2023 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 650,000 $ 650,000 $ 600,000 $ (50,000) Charges for Services 975,000 975,000 350,352 (624,648) Investment Earnings - - 14,929 14,929 Other 5,000 5,000 745,121 740,121 Total Revenues 1,630,000 1,630,000 1,710,402 80,402 Expenditures: Parks and Recreation 1,630,000 1,630,000 1,455,309 174,691 Lease Principal - 43,653 43,653 Lease Interest - 3,267 3,267 Capital Outlay - 23,294 (23,294) Total Expenditures 1,630,000 1,630,000 1,525,523 104,477 Excess (Deficiency) of Revenues Over (Under) Expenditures Net Change in Fund Balance 184,879 184,879 184,879 184,879 Fund Balance - Beginning of Year - 531,555 531,555 Fund Balance - End of Year $ $ - $ 716,434 $ 716,434 199 City of Miami, Florida Schedule of Revenue, Expenditures and Changes In Fund Balance Budget and Actual - Solid Waste Recycling Trust For The Fiscal Year Ended September 30, 2023 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Investment Earnings $ 13,000 $ 13,000 $ 47,139 $ 34,139 Other 150,000 48,000 - (48,000) Total Revenues 163,000 61,000 47,139 (13,861) Expenditures: Public Works 163,000 61,000 11,427 49,573 Total Expenditures 163,000 61,000 11,427 49,573 Excess (Deficiency) of Revenues Over (Under) Expenditures Net Change in Fund Balance 35,712 35,712 35,712 35,712 Fund Balance - Beginning of Year - - 1,050,929 1,050,929 Fund Balance - End of Year S $ - $ 1,086,641 $ 1,086,641 200 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, 2023 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 199,000 $ 199,000 $ 199,000 $ - Investment Earnings - - 271,187 271,187 Other 6,100,000 6,100,000 - (6,100,000) Total Revenues 6,299,000 6,299,000 470,187 (5,828,813) Expenditures: Community Redevelopment Areas 6,286,000 6,286,000 130,695 6,155,305 Capital Outlay 13,000 13,000 - 13,000 Total Expenditures 6,299,000 6,299,000 130,695 6,168,305 Excess (Deficiency) of Revenues Over (Under) Expenditures Net Change in Fund Balance 339,492 339,492 339,492 339,492 Fund Balance - Beginning of Year - - 6,071,795 6,071,795 Fund Balance - End of Year $ $ - $ 6,411,287 $ 6,411,287 201 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, 2023 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Other $ 1,860,000 $ 1,860,000 $ - $ (1,860,000) Total Revenues 1,860,000 1,860,000 - (1,860,000) Expenditures: Public Facilities 1,961,000 1,961,000 - 1,961,000 Total Expenditures 1,961,000 1,961,000 - 1,961,000 Excess (Deficiency) of Revenues Over (Under) Expenditures (101,000) Other Financing Sources (Uses): Transfers In Total Other Financing Sources (Uses) Net Change in Fund Balance 101,000 101,000 (101,000) - 101,000 101,000 101,000 101,000 101,000 101,000 101,000 Fund Balance - Beginning of Year - - 1,860,000 1,860,000 Fund Balance - End of Year $ $ - $ 1,961,000 $ 1,961,000 202 City of Miami, Florida Schedule of Revenue, Expenditures and Changes In Fund Balance Budget and Actual - General Obligation Bonds For The Fiscal Year Ended September 30, 2023 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Property Taxes $ 22,669,000 $ 22,669,000 $ 22,791,118 $ 122,118 Total Revenues 22,669,000 22,669,000 22,791,118 122,118 Expenditures: General Government 12,744,000 12,744,000 2,500 12,741,500 Principal 8,255,000 8,255,000 8,255,000 - Interest and Other Charges 1,670,000 1,670,000 1,668,416 1,584 Total Expenditures 22,669,000 22,669,000 9,925,916 12,743,084 Excess (Deficiency) of Revenues Over (Under) Expenditures 12, 865,202 12, 865,202 Net Change in Fund Balance - 12,865,202 12,865,202 Fund Balance - Beginning of Year - - 1,737,411 1,737,411 Fund Balance - End of Year $ $ - $ 14,602,613 $ 14,602,613 203 City of Miami, Florida Schedule of Revenue, Expenditures and Changes In Fund Balance Budget and Actual - Special Obligation Bonds For The Fiscal Year Ended September 30, 2023 Budgeted Amounts Variance with Original Final Actual Amounts Final Budget Revenues: Intergovernmental Revenues $ 5,000,000 $ 5,000,000 $ 5,000,000 $ - Investment Earnings - 94 94 Other 2,337,000 2,337,000 - (2,337,000) Total Revenues 7,337,000 7,337,000 5,000,094 (2,336,906) Expenditures: General Government 7,000 507,000 - 507,000 Principal 30,844,000 57,304,000 57,300,798 3,202 Interest and Other Charges 11,991,000 11,991,000 11,933,501 57,499 Total Expenditures 42,842,000 69,802,000 69,234,299 567,701 Excess (Deficiency) of Revenues Over (Under) Expenditures (35,505,000) Other Financing Sources (Uses): Transfers In Transfers Out Issuance of Debt Total Other Financing Sources (Uses) 35,505,000 35,505,000 (62,465,000) (64,234,205) (1,769,205) 38,623,000 (2,618,000) 26,460,000 36,005,000 26,460,000 62,465,000 62,465,000 (2,618,000) 2,618,000 Net Change in Fund Balance - - (1,769,205) (1,769,205) Fund Balance - Beginning of Year - 6,480,970 6,480,970 Fund Balance - End of Year $ $ - $ 4,711,765 $ 4,711,765 204 ANNUAL COMPREHENSIVE FINANCIAL REPORT 2023 City of Miami, Florida Combining Statement of Fiduciary Net Position Fiduciary Funds September 30, 2023 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 $ 16,009,063 $ 1,076,614 $ 34,460 $ 70,738 $ $ 17,190,875 Accounts Receivable 2,665,259 4,319,747 50,782 5,000 7,040,788 Capital Assets, Net 2,009,965 1,664,004 - 3,673,969 20,684,287 7,060,365 85,242 75,738 27,905,632 Investments: U.S. Government Obligations 10,298,411 140,331,937 6,775,781 157,406,129 Corporate Bonds 335,267,017 54,587,893 1,217,444 391,072,354 Corporate Stocks 527,852,714 640,805,334 4,390,375 1,173,048,423 Money Market Funds - 37,190,356 1,389,520 38,579,876 International Equity 353,384,590 - 353,384,590 Real Estate 137,152,163 137,152,163 Private Equity 184,843,300 - 184,843,300 Total Investments 1,548,798,195 872,915,520 5,607,819 8,165,301 2,435,486,835 Securities Lending Collateral 42,512,197 - - 42,512,197 Total Assets 1,611,994,679 879,975,885 85,242 5,683,557 8,165,301 2,505,904,664 Liabilities Obligations Under Security Lending Transactions 42,512,197 - - 42,512,197 Accounts Payable 349,229 774,628 85,242 7,735 1,216,834 Accrued Liability - - 16,495 16,495 Payable for Securities Purchased 1,438,129 3,549,597 - 4,987,726 Total Liabilities 44,299,555 4,324,225 85,242 7,735 16,495 48,733,252 Net Position Restricted for Pension Benefits $ 1,567,695,124 $ 875,651,660 $ $ 5,675,822 $ 8,148,806 $ 2,457,171,412 206 City of Miami, Florida Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Fiscal Year Ended September 30, 2023 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 $ 107,166,543 16,887,735 124,054,278 136,066,276 2,218,996 14,320,559 879,283 153,485,114 $ 55,325,610 15,313,027 70,638,637 92,378,994 9,840,860 7,604,768 23,238 109,847,860 $ 237,284 237,284 $ 257,061 $ 430,025 72,609 - 329,670 430,025 631,415 66,639 111,496 742,911 66,639 163,232 (40,975) 122,257 (3,837,193) 149,770,178 (2,333,166) 107,514,694 2,673,309 101,363 (54) 742,857 66,639 273,824,456 149,627,046 1,011,832 30,538,480 2,093,447 183,270,805 90,553,651 1,477,141,473 $ 1,567,695,124 180,826,640 338,647 81,875,080 237,284 2,217,315 2,991,534 87,083,929 93,742,711 781,908,949 $ 875,651,660 1,072, 527 496,664 $ 163,416,523 32,273,371 195,689, 894 229,143,324 12,059,856 22,036, 823 902,521 264,142, 524 163,232 (40,975) 122,257 (6,170,413) 258,094,368 2,774,672 456,558,934 330,259 589,511 232,659,180 - 3,229,147 - 30,538,480 101,363 2,400 5,188,744 338,647 330,259 591,911 271,615,551 742,268 (95,247) 184,943,383 4,933,554 8,244,053 2,272,228,029 $ 5,675,822 $ 8,148,806 $ 2,457,171,412 207 ANNUAL COMPREHENSIVE FINANCIAL REPORT 2023 This part of the Government's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. CONTENTS Financial Trends These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time, which can be found on page 209-215. Revenue Capacity These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax, which can be found on page 216-219. Debt Capacity These schedules present information to help the reader assess the affordability of the government's current level of outstanding debt and the government's ability to issue additional debt in the future, which can be found on page 220-224. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place, which can be found on page 225-226. Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs, which can be found on page 227-229. 208 CITY OF MIAMI, FLORIDA NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Primary Government Net Investment in Capital Assets $ 780,830,574 $ 715,473,122 $ 629,956,484 $ 665,680,605 $ 604,198,879 $ 578,092,580 $ 627,800,618 $ 616,752,804 $ 614,080,419 $ 651,485,412 Restricted 448,588,697 397,310,704 426,214,523 401,306,194 372,927,622 358,414,955 297,600,108 273,730,365 237,584,556 86,209,162 Unrestricted (Deficit) (2,096,719,378) (2,007,581,280) (1,965,159,870) (1,853,857,487) (1,692,600,562) (1,565,976,087) (1,604,200,940) (1,224,962,154) (1,163,152,861) (947,529,448) Total Primary Government $ (867300.107) $ (894,797,454) $ (908,988,863) $ (786,870,688) $ (715,474.061) $ (629,468,552) $ (678,800,214) $ (334.478,985) $ (311,487,886) $ (209,834,874) Net Position Notes: (1) The City does not have any business -type activities for financial reporting purposes. 209 CITY OF MIAMI CHANGES IN NET POSITION LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Expenses Governmental Activities: General Government $ 236,646,089 $ 139,895,526 $ 181,802,024 $ 176,361,184 $ 211,372,070 $ 190,328,428 $ 174,982,174 $ 145,455,559 $ 167,055,389 $ 240,815,051 Planning and Development 50,292,697 26,342,054 32,322,698 29,291,564 32,481,681 22,721,335 19,462,678 15,513,166 15,479,449 50,647,846 Community Development 45,708,781 64,951,670 49,845,139 29,159,537 29,885,260 28,371,102 29,443,452 27,937,279 30,519,798 45,476,324 Community Redevelopment Areas 81,701,184 46,524,287 41,687,355 48,200,294 39,510,779 35,272,784 34,616,272 36,149,769 58,062,764 18,087,177 Pudic Works 134,553,426 122,261,123 128,492,915 117,255,343 119,321,247 124,014,524 95,595,175 91,985,468 76,035,122 156,036,690 Public Safety 675,352,316 736,037,131 693,848,367 602,699,416 534,660,409 387,651,947 579,366,645 446,865,144 385,120,293 776,125,991 Pudic Facilities 26,006,068 18,193,540 20,286,822 19,575,268 20,295,788 22,371,164 19,086,773 16,758,483 16,560,573 23,126,368 Parks and Recreation 79,559,292 41,850,258 60,233,253 54,919,137 63,493,078 66,817,655 63,380,712 50,207,864 42,585,419 78,558,325 Interest on Long -Term Debt 16,212,390 17,603,609 18,690,842 18,504,420 20,689,106 25,405,481 29,663,407 32,606,891 33,747,629 31,932,034 Interest on Lease 453,450 5,803 - - - - - - - TotalPrimaryGovernmentExpenses 1,346,485,693 1,213,665,001 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 1,420,805,806 Program Revenues Governmental Activities Charges for Services General Government 89,864,924 68,526,288 55,236,442 59,106,255 67,114,357 79,713,436 79,706,559 78,089,981 66,307,491 65,821,177 Planning and Development 74,685,096 67,656,620 47,719,297 46,837,764 48,357,041 45,574,467 46,837,017 47,586,059 45,385,722 36,879,821 Community Development 1,424,687 1,424,196 786,476 369,387 920,736 538,541 - 1,766,173 5,009,547 824,248 Community Redevelopment Areas 2,560,628 4,204,813 7,550,071 6,746,428 5,638,853 4,332,416 1,998,138 2,157,456 1,138,695 416,337 Pudic Works 72,264,863 68,740,796 59,921,470 59,206,993 57,622,280 61,804,169 59,742,989 56,594,045 54,021,469 50,279,793 Public Safety 35,303,002 34,559,295 33,489,824 35,219,101 38,228,864 39,758,747 29,475,920 28,477,126 24,708,571 25,426,372 Public Facilities 47,005,340 48,898,117 30,734,347 23,853,938 38,503,061 35,922,411 37,720,512 35,324,297 37,455,509 30,925,509 Parks and Recreation 5,399,211 8,922,513 7,064,103 5,362,750 8,094,754 6,958,019 7,741,695 7,845,180 8,454,738 5,613,643 Operating Grants and Contributions 192,529,223 190,492,332 162,278,864 120,557,951 104,297,657 95,524,077 81,114,292 88,478,479 84,631,766 105,483,092 Capital Grants and Contributions 8,554,132 8,060,969 19,238,489 7,128,248 2,816,007 9,069,762 1,078,796 11,315,519 9,253,860 2,598,400 Total Primary Government Program Revenue 529,591,106 501,485,939 424,019,383 364,388,815 371,593,610 379,196,045 345.415.918 357,634,315 336,367,368 324,268,392 Net(Expense)/Revenne Total Primary Government Net Expense (816.894.587) (712.179.062) (803.190.032) (731,577,348) (700.115.808) (523,758.375) (873.254.883) (505.845308) (488.799.068) (1.096.537.416) 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 State Revenue Sharing - Unrestricted Sales and Other Use Taxes Pudic Service Taxes Investment Earnings (Losses) -Unrestricted Gain (Los) on Disposal of Capital Assets Other General Revenues Total Primary Government 566,452,260 510,016,568 485,723,309 448,028,007 399,003,234 369,230,063 336,475,508 298,719,456 269,303,313 241,721,842 22,791,118 20,253,623 19,365,454 23,849,213 28,201,316 28,017,811 26,964,194 25,661,731 24,848,727 24,853,248 61,217,502 57,001,420 50,339,450 49,083,039 51,399,079 49,741,913 49,207,879 47,416,360 47,560,134 46,311,659 23,010,534 22,494,052 18,716,613 16,310,689 17,254,032 16,380,921 15,687,260 14,836,385 14,389,530 13,389,054 47,769,337 49,108,943 40,024,004 32,664,564 37,022,921 35,786,997 33,521,269 32,699,735 31,254,199 29,490,981 80,527,456 70,042,172 65,846,228 64,646,386 64,160,961 64,250,989 62,532,940 60,020,384 59,576,109 60,395,502 42,623,727 (2,546,307) 1,056,799 12,061,606 17,068,757 9,681,343 4,544,604 3,500,158 4,761,254 4,298,129 - - - 13,537,217 - (1) - - (546,835) 9,960,348 844,391,934 726,370,471 681,071,857 660,180,721 614,110,300 573,090,036 528,933,654 482,854,209 451,146,431 430,420,763 Change in Net Position Total Primary Govemment $ 27,497,347 $ 14,191,409 $ (122,118,175) $ (71.396.627) $ (86.005.508) $ 49,331,661 $ (344.321.229) $ (22,991.099) $ (37.652.637) $ (666.116.653) Notes (1) The City does not have any business -type activities for financial reporting purposes. 210 CITY OF MIAMI, FLORIDA GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE 1 AS T TEN FIS CAL YEARS (ACCRUAL BASIS OF ACCOUNTING) Ad Valorem Sales and Fiscal Ad Valorem Taxes Taxes Debt Franchise Other Use Communication Year General Purpose Service Taxes Taxes Service Taxes Total 2023 $ 566,428,649 $ 22,791,118 $ 61,217,502 $ 47,769,337 $ 80,527,456 $ 778,734,062 2022 510,016,568 20,253,623 57,001,420 49,108,943 70,042,172 706,422,726 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 241,721,842 24,853,248 46,311,659 29,490,981 60,395,502 402,773,232 211 CITY OF MIAMI,FLORIDA FUND BALANCES OF OTHER GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Fund Balances: Non -Spendable Fund Balance Non Spendable Spendable Fund Balance Restricted Committed Assigned Unassigned (deficit) Total Fund Balances Note: Changes to the fund balance Fund Balances: Non -Spendable Fund Balance Non Spendable Spendable Fund Balance Restricted Committed Assigned Unassigned (deficit) Total Fund Balances $ 1,000,000 $ 4,629,715 $ 9,328,858 $ 5,340,361 $ 1,111,308 $ 1,026,537 $ 1,021,897 $ 1,023,573 $ 1,024,203 $ 1,025,000 455,723,375 358,228,302 399,706,759 328,160,418 310,838,708 318,849,862 265,501,347 258,667,436 265,861,622 198,622,000 165,270,721 153,429,543 115,455,853 108,797,334 110,723,266 107,646,577 121,083,524 133,813,871 92,342,101 27,352,000 8,000,780 52,012,806 6,283,166 10,168,840 7,759,828 24,489,771 19,260,410 23,123,877 7,731,312 1,272,000 (43,171,554) (32,154,469) (25,820,508) (57,118,857) (34,924,981) (17,507,009) (218,262) (19,998,886) (1,544,338) - $ 586,823,322 $ 536,145,897 $ 504,954,128 $ 395,348,096 $ 395,508,129 $ 434,505,738 $ 406,648,916 $ 396,629,871 $ 365,414,900 $ 228,271,000 s being presented prospectively. Excluding general fund FUND BALANCE GENERAL FUND LAST TEN FISCAL YEAR (MODIFIED ACCRUAL BASIS OF ACCOUNTING) 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 $ 51,871,577 $ 37,893,799 $ 27,108,617 $ 13,821,891 $ 43,250,983 61,238,332 38,275,173 10,779,271 82, 598, 671 78,330,228 $ 215,996,404 $ 188,241,630 $ 3,342,337 $ 2,154,528 $ 51,328,869 96,364,271 93,564,826 82,882,117 2,811,048 12,516,335 33,984,190 38,015,621 76,264,571 73,863,962 69,054,019 64,411,285 157,513,105 $ 196,566,459 $ 199,945,372 $ 187,463,551 $ 2,101,634 $ 2,009,736 $ 2,450,193 $ 2,950,000 72,818,263 51,908,663 31,257,219 25,386,647 21,116,250 53,619,428 51,813,000 59,836,874 56,486,700 60,077,872 57,659,000 160,143,418 $ 131,521,349 $ 147,404,712 $ 112,422,000 Note: General Fund information is presented separately from other governmental funds with a ten year trend information on fund balance. 212 CITY OF MIAMI, FLORIDA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) 2023 2022 2021 2020 2019 Revenues Property Taxes $ 589,219,767 $ Franchise and Other Taxes 141,744,958 Licenses and Permits 108,673,479 Fines and Forfeitures 9,219,964 Intergovernmental Revenues 263,897,302 Charges for Services 162,876,290 Investment Earnings 42,647,338 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 Lease Financing Principal Lease Financing Interest Interest and Other Charges Capital Outlay Total Expenditures 529,767,979 $ 505,088,763 $ 127,043,592 116,185,678 101,056,835 78,454,388 9,873,212 9,825,195 263,891,045 230,523,592 160,875,895 122, 876, 516 (2,546,307) 1,056,799 26,752, 331 22,711,318 14,209, 808 14, 547,430 14,748,978 16,419,124 1,359,578,859 1,227,422,547 1,094,639,863 1,003,091,070 471,877,220 $ 113,729,425 79,300,612 9,021,942 168,720,203 108,120,816 12,061,606 24,683,333 15,575,913 432,680,618 115,560,040 80,010,141 9,293,224 159,010,672 134,956,287 17,068,757 17,360,958 22,859,336 988,800,033 153,43 9,692 128,778,743 13 5,160,981 49,057,680 36,366,695 30,683,308 45,437,976 66,487,378 49,418,983 80,289,644 45,528,531 39,714,941 126,128,117 127,873,486 115,167,657 567,279,328 509,531,048 480,671,049 21,630,445 19,274,254 17,100,412 72,417,371 59,812,433 52,026,981 70,770,798 59,724,832 59,358,896 1,975,456 41,117 453,450 5,803 - 15,715, 513 17,188,700 18,03 5,653 115,863,440 95,544,870 77,495,908 1,320,458, 910 1,166,157,890 1,074,834,769 102,450,375 28,881,769 29,552,658 46,923,582 110,631,807 469,416,576 16,090,739 51,400,432 146,416,786 28,842,970 29,278,850 38,207,865 104,267,248 43 9,120,870 16,271,550 49,672,482 62,764,274 51,836,573 25,977,322 86,245,833 1,030,335,367 24,567,265 75,065,968 1,003,548,427 Excess (Deficiency) of Revenues Over (Under) Expenditures 39,119,949 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 Lease Financing Total Other Financing Sources (Uses) Net Changes in Fund Balances Debt Service as a Percentage of Non -Capital Expenditures 224,969,684 (224,969,684) 912,162 33,892,552 4,507,536 39,312,250 $ 78,432,199 $ 61,264,657 123,009,276 (123,009,276) 540,279 115,358 655,637 61,920,294 $ 19,805,094 (27,244,297) (14,748,394) 139,828,821 (139,828,821) 227,165 50,520,419 50,747,584 70,552,678 $ 101,441,753 (101,441,753) 14,449,072 (103,575,001) 112,831,279 23,705,350 (3,538,947) $ 98,046,289 (98,046,289) 195,133 (120,320,000) 108,357,473 (11,767,394) (26,515,788) 7.18% 7.18% 7.76% 9.40% 8.23% (continued) 213 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 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 Lease Financing Principal Lease Financing Interest 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 Lease Financing Total Other Financing Sources (Uses) Net Changes in Fund Balances 2018 2017 2016 2015 2014 $ 397,247,874 $ 363,439,702 $ 324,381,187 $ 294,152,040$ 266,575,890 113, 992, 902 111,740, 819 107,436,744 107,136,243 106,706,981 73,756,786 73,030,964 71,826,609 65,136,838 60,905,490 15,638,528 17,727,789 17,022,156 13,606,546 12,633,258 156,349,299 131, 983, 836 144,464,881 144,172,756 147,318,713 133,732,658 131,422,481 128,520,198 127,031,324 109,858,728 9,681,342 4,544,604 3,500,158 4,761,254 4,298,129 20,861,463 25,347,222 25,491,632 20,848,627 21,561,620 30,612,771 15,694,374 14,979,722 15,858,407 11,227,804 951,873,623 874,931,791 837,623,287 792,704,035 741,086,613 116,727,619 113,445,352 94,863,916 95,097,965 93,266,684 22,526,541 18,478,112 16,530,501 17,528,545 13,886,927 28,331,999 29,059,382 27,669,432 30,618,655 32,773,187 33,972,903 33,155,840 35,240,353 57,374,849 16,496,169 113,745,559 93,845,068 88,781,332 72,332,848 64,762,823 398,331,195 377,635,776 358,151,070 320,578,664 309,032,876 18,098,100 16,095,228 14,172,514 14,182,077 11,558,522 53,971,624 50,122,922 40,252,541 34,176,174 30,933,658 53,599,962 42,848,297 31,666,421 23,134,356 47,423,659 35,299,145 33,376,755 37,407,853 43,562,774 42,414,727 80,821,666 80,312,188 88,247,094 87,743,237 65,700,078 955,426,313 888,374,920 832,983,027 796,330,144 728,249,310 (3,552,690) (13,443,129) 4,640,260 (3,626,109) 12,837,303 118,757,528 115,984,813 134,391,945 113,353,457 (118,757,527) (115,984,813) (134,391,945) (113,353,457) 277,969 787,221 441,720 1,957,890 (74,105,000) (112,330,000) (57,635,000) - 132,556,675 163,694,922 67,884,628 (67, 900) 130,317,671 (130,317,670) 10,607,538 4,330,862 73,934,380 58,729,645 52,084,243 $ 55,176,955 $ 38,641,114 $ 10,691,348 1,957,890 88,872,781 15,331,608 $ (1,668,219)$ 101,710,084 Debt Service as a Percentage of Non -Capital Expenditures 10.16% 9.43% 9.28% 9.41% 13.56% 214 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 2023 $ 566,428,649 $ 22,791,118 $ 61,217,502 $ 47,769,337 $ 80,527,456 $ 778,734,062 2022 510,016,568 20,253,623 57,001,420 49,108,943 70,042,172 706,422,726 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 60,395,322 402,773,852 215 Fiscal Year Ended September 30, 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 CITY OF MIAMI, FLORIDA NET ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Real Property Residential Property $ 52,854,931,418 46,196,295,3 50 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 Commercial Property $ 28,288,129,784 24,694,856,292 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 Source: Miami -Dade Country Property Appraiser's Office. Personal Property $ 3,308,707,221 2,858,329,569 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 Net Assessed Value Total Direct Tax Rate $ 84,451,768,423 73,749,481,211 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 7.8774 7.9900 7.9900 7.9900 8.0300 8.0300 8.2900 8.3351 8.3850 8.4310 Estimated Actual Value $ 120,403,671,841 97,315,325,026 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 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) 70.14% 75.78% 80.59% 79.81% 77.22% 74.24% 74.53% 73.57% 73.51% 78.57% 216 Fiscal Year 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Tax Roll Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 CITY OF MIAMI, FLORIDA PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS City of Miami, Florida General Operations 7.55390 7.66650 7.66650 7.56650 7.58650 7.43650 7.64650 7.64650 7.64650 7.61480 Debt Total Service City 0.3235 7.8774 0.3235 7.9900 0.3235 7.9900 0.4235 7.9900 0.4435 8.0300 0.5935 8.0300 0.6435 8.2900 0.6886 8.3351 0.7385 8.3850 0.8162 8.4310 Overlapping Rates (1) Miami -Dade County School Miami -Dade Board County 6.5890 5.1055 7.0090 5.1744 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 Miami -Dade Miami -Dade Children's County Library Trust System 0.5000 0.2812 0.5000 0.2840 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 Sources: City of Miami, Florida Finance Department and Miami -Dade County Property Appraiser's Office. South Florida Water Management District 0.1974 0.2207 0.2295 0.2398 0.2519 0.2659 0.2836 0.3045 0.3294 0.3523 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 0.0327 0.0320 20.61520 0.0365 0.0320 21.24660 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 217 CITY OF MIAMI, FLORIDA PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO 2023 2014 Percent of Percent of Total Total Net City Net Net City Net Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value Florida Power and Light 999,954,215 1 1.18% 534,364,000 1 1.51% Ponte Gadea Biscayne LLC 380,000,000 2 0.45% - TWJ 1101 LLC 370,168,692 3 0.44% - River Landing Development LLC 258,263,288 4 0.31% - 5 Plaza LLC 241,821,000 5 0.29% - Brickell Holdings LLC 241,731,557 6 0.29% - T C 701 Brickell LLC 240,700,000 7 0.29% 180,200,000 5 0.51% PPF AMLI NE 2 Ave LLC 226,792,860 8 0.27% - MCPP WFC Maami LLC 222,500,000 9 0.26% - 1450 Brickell LLC 220,385,494 10 0.26% 132,080,000 8 0.37% Plantation General Hospital - 184,128,000 4 0.52% 200 S Biscayne TIC 1 LLC - 250,334,000 2 0.71% PR 1111 Brickell LLC - 131,500,000 9 0.37% Crescent Miami Center - 192,390,000 3 0.55% Bellsouth Telecommunications - 138,326,000 6 0.39% Trustees of L and B - 125,200,000 10 0.35% Bayfront 2011 Property - 132,906,000 7 0.38% Total $ 3,402,317,106 4.03% $ 2,001,428,000 5.67% Net Assessed Value- Citywide $ 84,451,768,423 $ 35,284,841,538 Source: Miami -Dade Property Appraiser 218 Fiscal Year Ended September 30, 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Total Taxes Levied for Fiscal Year $ 631,997,343 559,795,437 499,722,387 478,259,512 449,788,561 407,034,676 390,792,627 353,176,443 315,966,185 281,070,226 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 $ 570,374,265 90.25% $ 18,833,869 512,762,869 91.60% 17,005,069 486,873,568 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 Total Collections To Date Amount $ 589,208,134 529,767,938 505,088,757 471, 877,210 427,204,529 397,247,874 363,439,702 324,381,187 294,152,032 266,596,467 Percent of Levy 93.23% 94.64% 101.07% 98.67% 94.98% 97.60% 93.00% 91.85% 93.10% 94.85% 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%. 219 Fiscal Year Ended September 30, 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 CITY OF NIIANII, FLORIDA RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Governmental Activities General Obligation Bonds $ 63,025,000 71,280,000 94,345,000 115,240,000 135,315,000 154,385,000 174,640,000 189,735,000 205,038,304 217,378,253 Revenue Bonds $ 342,382,932 366,213,903 389,170,207 389,778,811 424,332,312 461,893,102 455,546,326 451,965,126 468,723,244 479,517,651 Loans Payable $ 19,463,095 13,173,647 13,745,199 13,745,199 13,745,199 12,867,726 1,236,279 Leases $ 31,718,593 29,175,138 42,307,114 29,641,987 28,521,480 36,567,263 30,675,052 10,644,628 Premium (Discounts) Accretions $ 4,207,668 4,909,844 5,689,227 6,545,073 9,128,227 4,869,802 6,436,510 8,547,344 12,257,756 21,334,989 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 Percent of Personal Per Total Income (1) Capita (1) $ 460,797,288 484,752,532 545,256,747 554,951,070 611,042,218 670,582,893 667,297,888 660,892,098 686,019,304 719,467,172 1.83% 2.25% 2.47% 2.35% 2.82% 3.24% 3.51% 3.78% 2.43% 2.37% 1,003 1,056 1,212 1,115 1,245 1,393 1,426 1,561 1,723 1,682 220 Fiscal Year Ended September 30, 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 CITY OF MIAMI, FLORIDA RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAS T TEN FIS CAL YEARS General Obligation Bonds $ 63,025,000 71,280,000 94,345,000 115,240,000 135,315,000 154,385,000 174,640,000 189,735,000 205,038,304 217,378,253 Less Amounts Available in Debt Service Fund $ 14,602,612 1,737,411 6,577,891 10,458,570 9,649,590 9,425,837 5,580,816 3,449,542 1,810,611 3,054,873 Total $ 48,422,388 69,542,589 87,767,109 104,781,430 125,665,410 144,959,163 169,059,184 186,285,458 203,227,693 214,323,380 Percentage of Estimated Actual Taxable Value of Property (1) 0.057% 0.094% 0.133% 0.166% 0.213% 0.272% 0.341% 0.418% 0.509% 0.607% Note:Details regarding the City's outstanding debt can be found in the notes to the financial statements Per Capita (2) 105 151 195 210 256 301 361 408 462 513 (1) See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property on page 216 for property value data. (2) See the Schedule of Demographic and Economic Statistics on page 225 for population data. 221 CITY OF MIAMI, FLORIDA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT AS OF SEPTEMBER 30, 2023 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 leases) Percentage Amount Net Applicable to Applicable to Debt the City of the City of Outstanding Miami (1) Miami $ 2,336,015,000 1,133,729 19.00% $ 443,842,850 19.00% 215,409 444,058,259 447,172,110 Total Direct and Overlapping Debt $ 891,230,369 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. 222 CITY OF MIAMI, FLORIDA LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Debt Limit $ 12,423,699,449 $10,826,484,615 $ 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 Total Net Debt Applicable to Limit 48,422,388 69,542,589 87,767,109 104,781,430 125,665,410 144,959,163 169,059,184 186,285,458 203,227,694 214,300,991 Legal Debt Margin $ 12,375,277,061 $10,756,942,026 $ 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 Total Net Debt Applicable to the 0.39% 0.64% 0.91% 1.14% 1.47% 1.88% 2.37% 2.91% 3.57% 4.29% Limit as a Percentage of Debt Limit Assessed Value $ 84,451,768,423 Less Homestead Exempt Valuation (1,627,105,427) Total Assessed Value 82,824,662,996 Debt Limit for Bonds (15% of Total Assessed Value) 12,423,699,449 Present Debt Application to Debt Limitation General Obligation Debt 63,025,000 Less Amount Available in Debt Service Fund (14,602,612) Total Net Debt Applicable to Limit 48,422,388 Legal Debt Margin $ 12,375,277,061 223 Fiscal Year Ended Ad -Valorem CITY OF MIAMI, FLORIDA PLEDGED REVENUE COVERAGE LAST TEN FISCAL YEARS Debt Service September 30, Revenues (1) Principal 2023 $ 589,208,134 2022 529,767,939 2021 486,873,568 2020 446,908,467 2019 408,965,659 2018 384,282,266 2017 363,439,702 2016 324,381,189 2015 294,152,040 2014 266,575,890 $ 8,255,000 23,065,000 20,895,000 20,075,000 19,070,000 20,255,000 17,145,000 14,908,304 12,339,949 11,592,499 Interest $ 1,668,416 2,026,603 2,506,753 2,957,634 3,423,817 3,941,109 9,490,770 9,123,918 13,741,375 13,780,696 2x Annual Debt Service $ 19,846,831 50,183,206 46,803,506 46,065,269 44,987,634 48,392,218 53,271,540 48,064,444 52,162,647 50,746,390 Note: (1) Ad valorem revenues shall mean all legally available revenues and taxes of the governmental unit in the Funds (defined as the general fund, special revenue funds, the capital project funds, the special assessment funds, and the expandable trust fund(s)) derived from any source whatever other than ad valorem taxation on real and personal property, including appropriated fund balances in the funds and applicable operating transfers (in). Non -Ad Valorem Revenues are required to be two times greater than projected debt service. Coverage (2) 29.69 10.56 10.40 9.70 9.09 7.94 6.82 6.75 5.64 5.25 (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. CITY OF MIAMI, FLORIDA DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS Personal Income (Amounts Expressed Personal School Unemployment Year Population(1) in Thousands) (2) Income(2) Median Age (1) Enrollment (3) Rate (4) 2023 464,225 $ - $ 40 335,725 2.8% 2022 459,224 25,192,110 54,858 40 329,337 2.9% 2021 449,747 21,524,891 47,860 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% Sources: (1) Bureau of Economic and Business Research, University of Florida (2) United States Census Bureau (3) Miami -Dade County School Board Budget Office (4) U.S. Bureau of Labor Statistics (FY22 - FY23) * FY 2023 Personal Income Infoi,iiation not available 225 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 Florida International University Carnival Cruise Lines Miami -Dade College Total CITY OF MIAMI, FLORIDA PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO 2023 2014 Percentage of Percentage of Total County Total County Employees Rank Employment Employees Rank Employment 34,239 1 2.6% 33,477 1 3.4% 30,050 2 2.3% 25,502 2 2.0% 19,200 3 1.5% 19,600 3 1.5% 17,100 5 1.3% 18,300 4 1.4% 17,258 4 1.3% 12,720 6 1.0% 13,376 5 1.1% 14,000 6 1.1% 9,000 9 0.7% 12,173 8 0.9% 8,208 7 0.8% 12,524 7 1.0% 4,604 8 0.8% 10,136 9 0.8% 3,534 10 0.6% 3,500 7,111 10 0.5% 2,356 173,791 13.3% 154,177 13.3% Sources: The School Board of Miami -Dade County, Florida Annual Comprehensive Financial Report 2023. 226 CITY OF MIAMI, FLORIDA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Number of Employees: General Government 647 668 647 658 638 674 642 608 519 538 Planning and Development 287 250 196 185 179 169 152 138 135 126 Community Development 37 35 35 35 35 35 35 35 38 40 Public Works 629 631 609 591 583 572 573 517 506 452 Public Safety 2,705 2,654 2,556 2,692 2,648 2,599 2,580 2,548 2,448 2,338 Public Facilities 49 50 50 57 59 63 63 54 41 41 Parks and Recreation 289 288 288 299 294 300 301 279 196 192 Total Number of Employees 4,643 4,576 4,381 4,517 4,436 4,412 4,346 4,179 3,883 3,727 Source: City of Miami, Budget Department 227 Function/Program Community Development: Entitlements/Grants Received CITY OF MIAMI, FLORIDA OPERATING INDICATORS BY FUNCTION LAST TEN FISCAL YEARS 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 $ 23,889 $ 21,599 $ 21,168 $ 20,763 $ 20,921 $ 19,401 N/A $ 19,287 $ 19,034 $ 19,239 Public Safety: Police: Part 1 Crimes - (1) N/A N/A 15,319 17,275 20,462 20,360 23,269 23,043 23,709 25,208 Part 1 Arrests - (1) N/A N/A 2,380 2,687 2,971 3,188 2,456 3,239 3,108 3,715 Part 2 Arrests - (2) N/A N/A 10,963 9,310 18,748 17,205 17,898 21,732 22,564 27,580 Fire: Number of Fire Calls 19,682 18,858 17,882 15,889 15,437 15,285 19,090 14,445 13,970 12,736 Number of EMS Calls 83,343 84,787 91,534 93,107 81,462 82,711 86,865 87,977 86,038 83,697 Number of Alarms 103,025 103,645 109,416 108,996 96,899 97,996 105,955 102,422 100,008 96,433 Planning and Development: Certificate of Use Permits Used Business Tax Receipts Issued 20,095 21,224 22,482 22,810 22,762 25,779 22,018 26,739 21,191 23,399 27,030 26,270 22,426 21,411 23,368 24,144 21,592 26,661 22,566 33,877 Culture and Recreation: Summer Food Program - Meals Served (Lunches) N/A N/A N/A N/A N/A N/A N/A N/A N/A 123,925 Summer Food Program - Meals Served (Snacks) N/A N/A N/A N/A N/A N/A N/A N/A N/A 123,425 Solid Waste: Refuse Collected (Tons/Day) 376 364 381 383 635 709 693 562 693 675 Recyclables Collected (Tons/Day) 31 41 40 48 54 45 56 52 39 48 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 228 CITY OF MIAMI, FLORIDA CAPITAL ASSETS STATISTICS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS Function/Program 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 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 15 15 14 Solid Waste: Collection Trucks Public Works: Streets (Miles - Paved) Streets (Miles - Unpaved) Transportation: Street Resurfacing (Miles) 158 159 160 160 151 170 164 148 141 143 661.6 661.6 661.6 661.6 661.6 661.9 661.9 663.2 663.5 663.5 0.80 0.80 0.80 0.82 0.84 0.8 0.8 0.8 0.8 0.8 N/A N/A N/A N/A N/A N/A 23.1 24.0 41.0 27.7 Culture and Recreation: Parks Acreage 1,447 1,345 1,345 1,444 1,316 1,316 1,316 1,497 936 897 Parks 164 147 149 147 145 145 145 143 131 127 Swimming Pools 17 18 18 18 15 15 15 15 15 15 Tennis Courts 51 51 51 48 65 65 65 61 61 61 Community Centers 43 43 43 43 43 43 43 34 43 35 Basketball Courts 96 96 96 91 71 71 71 71 71 71 Water Playgrounds 6 6 6 6 6 6 6 5 5 4 Soccer Fields 24 24 24 15 15 15 15 15 15 15 Football Fields 9 9 9 9 9 9 9 9 9 9 Baseball Fields 28 28 28 29 30 30 30 30 30 30 Open Practice Fields N/A - 29 29 29 29 2 2 2 Cricket Field N/A - - - - - - 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 230 About the Cover View of Midtown and 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 Annual Comprehensive Financial Report. City of Miami, Florida Finance Department 444 SW 2 Avenue, 6th Floor Miami, Florida 33130 231 CITY OF MIAMI, FLORIDA Fiscal Year Ended September 30, 2023 X twitter.com/ miamifinance305 miami.gov