HomeMy WebLinkAboutCRA-R-26-0016 Exhibit ACITY OF MIAMI SOUTHEAST OVERTOWN PARK
WEST COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Basic Financial Statements
September 30, 2025
CITY OF MIAMI SOUTHEAST OVERTOWN PARK
WEST COMMUNITY REDEVELOPMENT AGENCY
(A COMPONENT UNIT OF THE CITY OF MIAMI, FLORIDA)
TABLE OF CONTENTS
SEPTEMBER 30, 2025
Independent Auditor's Report
Management's Discussion and Analysis (Required Supplementary Information)
Paaes
1-2
3-7
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Position 8
Statement of Activities 9
Fund Financial Statements:
Balance Sheet — Governmental Funds 10
Reconciliation of the Balance Sheet - Governmental Funds to the
Statement of Net Position 11
Statement of Revenues, Expenditures, and Changes in Fund Balances —
Governmental Funds 12
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances - Governmental Funds to the Statement of Activities 13
Notes to Basic Financial Statements 14-25
Required Supplementary Information (Unaudited):
Budgetary Comparison Schedule — Special Revenue Fund
Note to Required Supplementary Information
26
27
Other Reports:
Independent Auditor's Report on Internal Control Over Financial Reporting and
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance With Government Auditing Standards 28-29
Management letter in Accordance with the Rules of the Auditor General of the
State of Florida 30-31
Independent Accountant's Report or Compliance with Sections 163.387(6) and
(7), Florida Statutes 32
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INDEPENDENT AUDITOR'S REPORT
The Board of Directors
City of Miami Southeast Overtown Park
West Community Redevelopment Agency:
Opinions
We have audited the accompanying financial statements of the governmental activities and each major fund
of the City of Miami Southeast Overtown Park West Community Redevelopment Agency (the Agency), a
component unit of the City of Miami, Florida, as of and for the year ended September 30, 2025, and the
related notes to the financial statements, which collectively comprise the Agency's basic financial statements
as listed in the table of contents.
In our opinion; the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities and each major fund of the Agency as of
September 30, 2025, and the respective changes in financial position thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the Un-ted States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Our responsibilities under those standards are
further described in the Auditor's Resporsibilities for the Audit of the Financial Statements section of our
report, We are required to be independent of the Agency, 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.
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 Agency's ability to continue as a
going concern for twelve 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 generally accepted auditing
standards and Government Auditing Standards will always detect a material misstatement when it exists.
1
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 generally accepted auditing standards 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, ard 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 Agency's internal control. Accordingly, no such opinion is expressed.
• 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 Agency'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 the management's
discussion and analysis and budgetary comparison information be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is required by
the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic, or historical context. We
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 informatior because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated February 3, 2026
on our consideration of the Agency's internal control over financial reporting and our tests of is compliance
with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The
purpose of that report is 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 internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering the Agency's internal control over financial reporting.
Miami, Florida
February 3, 2026
2
CITY OF MIAMI SOUTHEAST OVERTOWN
PARK WEST COMMUNITY REDEVELOPMENT AGENCY
(A COMPONENT UNIT OF THE CITY OF MIAMI, FLORIDA)
MANAGEMENT'S ❑ISCUSSION AND ANALYSIS - UNAUDITED
SEPTEMBER 30, 2025
This section of the City of Miami Southeast Overtown Park West Community Redevelopment Agency (the
Agency) financial statements presents management's analysis of the financial performance for the fiscal
year ended September 30, 2025. This discussion addresses whether or not the Agency as a whole is better
off or worse off as a result of this year's activities.
Overview
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 in
the Southeast Overtown area. The Agency's primary source of revenue is tax -increment funds. This
revenue is computed by applying the operating tax rate for the City and the County, multiplied by the
increased value of property located within the boundaries of the redevelopment areas of the Agency, over
the base property value, minus 5%. Both the City and the County are required to fund this amount annually
without regard to tax collections or other obligations,
On August 6, 2007, the City, County and The Children's Trust (the Trust) entered into an Interlocal
Agreement with the Agency, whereby the Agency would receive from the Trust, on an annual basis, tax
increment revenues derived from the imposition of a half -mil tax levied by the Trust against real property
located within the redevelopment district (referred to as Trust revenues). The agency agreed to use the
Trust revenues for debt service on, and other obligations relating to; existing debts of the Agency only after
all other available tax increment revenues have been exhausted for such purpose, and to remit to the Trust
on the last day of the Agency's fiscal year, all of the Trust revenues that are not needed for debt service on,
or other obligations relating to, existing debts of the Agency.
Further, the Agency's policy is set by a board of directors comprised of the five members of the City
commission and are separate, distinct and independent from the governing body of the City; and its
management plan is executed by a small professional staff led by its executive director.
Financial Hiahliohts
The liabilities of the Agency exceeded its assets at the close of its most recent fiscal year by $53,234,958.
Of this amount, $30,327,787 is invested in capital assets, and $150,000,000 is restricted for capital projects,
resulting in $(127,092,829) (unrestricted net deficit) available to meet the Agency's obligations to citizens in
the Southeast Overtown area.
At the close of the current fiscal year, the Agency's governmental funds reported combined ending fund
balances of $197,596,804, an increase of $151,224,450 in comparison with the prior year. This significant
increase was mainly a result of the issuance of Tax Increment Revenue Bonds, Series 2025A and Tax
Increment Revenue Refunding Bonds, Series 2025E during the current fiscal year.
Overview to the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Agency's basic financial
statements. The Agency's basic financial statements are comprised of three components:
• Government -wide financial statements
• Fund financial statements
• Notes to the basic financial statements
In addition, the Agency reports, as required supplementary information, a budget to actual comparison and
notes to the required supplementary information.
3
CITY OF MIAMI SOUTHEAST OVERTOWN
PARK WEST COMMUNITY REDEVELOPMENT AGENCY
(A COMPONENT UNIT OF THE CITY OF MIAMI, FLORIDA)
MANAGEMENT'S ❑ISCUSSION AND ANALYSIS - UNAUDITED
SEPTEMBER 30. 2025
Government -wide Financial Statements
The government -wide financial statements are designed to provide readers with a broad overview of the
Agency's finances, in a manner similar to a private -sector business (i.e. economic resources and
measurement focus). The statement of net position presents information on all of the Agency's assets and
liabilities, with the difference between the two reported as net position. Over time, increases or decreases
in net position may serve as a useful indicator of whether the financial position of the Agency is improving
or deteriorating. The statement of activities presents information showing how the Agency'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 the related cash flows. Thus,
revenues and expenses are reported in this statement for some items that will only result in cash flows in
future fiscal periods.
The government -wide financial statements may be found on pages B and 9 of this report.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The Agency, 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 Agency are categorized as 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 expendable
resources, as well as on balances of expendable resources available at the end of the fiscal year. Such
information may be useful in evaluating a government's near -term financing requirements. Because the
focus of governmental funds is narrower than that of the government -wide financial statements, it is useful
to compare the information presented for governmental funds with similar information presented for
governmental activities in the government -wide financial statements. By doing so, readers may better
understand the long-term impact of the government's near -term financing decisions. Both the
governmental fund balance sheet and the governmental fund statement of revenues, expenditures and
changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds
and governmental activities.
The Agency maintains four individual governmental funds during fiscal year 2025. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balances for each governmental fund.
The basic governmental fund financial statements can be found on pages 10 and 12 of this report. The
reconciliations between the governmental funds and governmental activities can be found on Sages 11 and
13 of this report.
Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the
government -wide and fund financial statements. The notes to the basic financial statements can be found
on pages 14 to 25 of this report.
4
CITY OF MIAMI SOUTHEAST OVERTOWN
PARK WEST COMMUNITY REDEVELOPMENT AGENCY
(A COMPONENT UNIT OF THE CITY OF MIAMI, FLORIDA)
MANAGEMENT'S ❑ISCUSSION AND ANALYSIS - UNAUDITED
SEPTEMBER 30. 2025
Budgetary Highlights
The Agency adopts an annual budget on an individual fund basis. A budgetary comparison schedule has
been provided for the Special Revenue Fund to demonstrate compliance with the budget on page 26 of this
report.
The following is a brief review of the significant variances between the original budget and the final budget,
if any, as well as the significant variances between the final budget and actual amounts, for the Special
Revenue Fund:
• The significant variance between the final budget and actual amounts reported for community
redevelopment expenditures is a result of redevelopment projects that either did not commence yet or
were not yet completed as planned.
Financial AnaLvsis
Government -wide Analysis
Our analysis of the financial statements of the Agency begins below. The Statement of Net Position and the
Statement of Activities report information about the Agency's activities that will help answer questions about
the position of the Agency. A summary of the Agency's net position is presented in Tab e A-1 and a
summary of changes in net position is presented in Table A-2.
Table A-1
Summary of Net Position
FY 2025 FY 2024
Cash
Restricted cash
Interest receivable
Loan receivable
Lease receivables
Capital assets, net
Total assets
Current liabilities
Non -current liabilities
Total liabilities
Deferred Inflows of Resources
Net position:
Net investment in capital assets
Restricted for capital projects
Unrestricted
$ 47,625,415
150,000,000
376,632
163,106
238,769
32,919,076
231,322,998
580,239
177,280,922
177,861,161
226,879
30,327,787
150, 000, 000
(127,092,829)
$
47,984,131
353,502
195,593
413,201
32,730,701
81,677,128
2,547,237
27,097,485
32,005,955
401,253
30,201,837
19,068,083
Total net position $ 53,234,958 $ 49,269,920
• Increase in restricted cash from the prior year is a result of the issuance of Tax Increment Revenue
Bonds, Series 2025A in the current year.
• Increase in non -current liabilities from the prior year is a result of the issuance of Tax Increment
Revenue Bonds, Series 2025A and Tax Increment Revenue Refunding Bonds, Series 2025E in the
current year.
5
CITY OF MIAMI SOUTHEAST OVERTOWN
PARK WEST COMMUNITY REDEVELOPMENT AGENCY
(A COMPONENT UNIT OF THE CITY OF MIAMI, FLORIDA)
MANAGEMENT'S ❑ISCUSSION AND ANALYSIS - UNAUDITED
SEPTEMBER 30. 2025
• A portion of the Agency's net position in the current year ($30,327,787) reflects its net investment in
capital assets (e.g. furniture and equipment, infrastructure and and), less any related outstanding debt
used to acquire those assets. These assets are not available for future spending.
• A portion of the Agency's net position in the current year ($15C,000,000) reflects the funding from the
issuance of Tax Increment Revenue Bonds, Series 2025A restricted for specific capital projects.
• The remairing portion of the Agency's net position in the current year (-$127,017,829) represents
resources that are unrestricted and available for any lawful use by the Agency.
Table A-2
Summary of Changes in Net Position
FYE 2025 FYE 2024
Revenues:
General revenues:
Tax increment revenue
Charges for Services - leases
Investment income
Other
Total revenues
Expenses:
General government
Community redevelopment
Interest on long-term debt
Total expenses
Change in net position
Net position, beginning of year
Net position, end of year
$ 52,653,923
174,374
1,171, 240
5,142,891
60,328,127
4,016,863
51,174,986
1,171,240
56,363,089
3,965,038
49,269,920
$ 53,234,958
$ 48,080,037
150,823
2,583,622
2,368,169
53,182,651
5,331,650
34, 698,178
1,006,730
41,036,558
12,146,093
20,652,114
49,269,920
• Tax increment revenue increased as a result of the increase in the payout by the City and County from
the prior year.
• Other revenues increased as a result of the reversal of accrued retainage from previous years and
income collected for rent on multiple properties managed by a third -party management company.
• Community redevelopment expenses -ncreased in the current year as a result of the increase in project
activity.
Individual Fund Analysis
The fund balance for the Special Revenue Fund increased from $42,025,905 at September 30, 2024 to
$44,747,871 at September 30, 2025. The fund balance in the Capital Projects Fund was new during 2025
due to the Tax Increment Revenue Bonds, Series 2025A, and as such has a fund balance of $150,000,000
at September 30, 2025. The fund balance for the Debt Service Fund remained at $0 at September 30,
2025, compared to September 30, 2024. The fund balance for the Non -Major Governmental Fund
decreased from $4,346,449 at September 30, 2024 to $2,848,933 at September 30, 2025.
Since the Agency only has governmental funds/activities, the changes in fund balance also explain the
increases in net position. The following are key factors in the changes in fund balances for 2025:
• The decrease in fund balance in the Special Revenue Fund was mainly due to the increase use of Non-
TIF funds on redevelopment projects during the current fiscal year as compared to the prior fiscal year.
6
CITY OF MIAMI SOUTHEAST OVERTOWN
PARK WEST COMMUNITY REDEVELOPMENT AGENCY
(A COMPONENT UNIT OF THE CITY OF MIAMI, FLORIDA)
MANAGEMENT'S ❑ISCUSSION AND ANALYSIS - UNAUDITED
SEPTEMBER 30. 2025
Capital Assets
As of September 30, 2025, the Agency's investment in capital assets, net of accumulated depreciation,
amounted to $32,919,076, increasing from $30,201,837 as of September 30, 2024.
Land
Construction -in -progress
Furniture and equipment
Infrastructure
Right of use lease asset
Total capital assets
Summary of Capital Assets
(Net of Accumulated Depreciation)
Fiscal Year
2025
$ 19,911,165
3,795,102
59,242
6,610,641
2,542,926
32,919,076
$
Additional capital asset information can be found on page 19 of this report.
Fiscal Year
2024
$ 19,911,165
3,077,484
54,025
7,159,163
2,528,864
$ 32,730,701
Long-term Obligations
During the fiscal year 2014, the Agency issued $55,885,000 (Series 2014A-1) in tax increment revenue
bonds. These bonds are secured by a pledge of certain tax increment revenue amounts received from the
City and County on the Southeast Overtown/Park West Community Redevelopment area. The proceeds of
the bonds were to be used to pay all or part of the costs of the construction and/or rehabilitation of certain
redevelopment projects undertaken pursuant to the Redevelopment Plan.
During the fiscal year 2025, the Agency issued $142,235,000 in tax increment revenue bonds (Series
2025A) and $19,675,000 in tax increment revenue refunding bonds (Series 2025B). These bonds are
secured by a pledge of certain tax increment revenue amounts received from the City and County on the
Southeast Overtown/Park West Community Redevelopment area. The proceeds of the Series 2025A bonds
are to be used to pay all or part of the costs of the construction and/or rehabilitation of certain
redevelopment projects undertaken pursuant to the Redevelopment Plan. The proceeds of the Series
20256 bonds were used to refund all of the Series 2014A-1 bonds and pay the costs of issuance related to
the Series 2025B bonds.
As of September 30, 2025, the Agency has bonds and loan outstanding in the amount of $174,460,819
compared to $30,616,209 as of September 30, 2024. Other than the Series 2025A and Series 2025B bonds,
no other debt was issued during fiscal year 2025. Also as of September 30, 2025, the Agency has lease
liabilities of $2,591,289 compared to $2,547,237 as of September 30, 2024, and compensated absences
payable as of September 30, 2025 of $228,814 compared to $188,413 as of September 30, 2024.
Additional long-term debt information can be found on pages 20 and 22 of this report.
Requests for Information
This financial report is designed to provide a general overview of the Agency's finances. Questions
concerning any of the information provided in this report or requests for additional information should be
addressed to the Executive Director, 819 NW 2nd Ave 3rd Floor Miami FL 33136.
7
CITY OF MIAMI SOUTHEAST OVERTOWN PARK
WEST COMMUNITY REDEVELOPMENT AGENCY
(A COMPONENT UNIT OF THE CITY OF MIAMI, FLORIDA)
STATEMENT OF NET POSITION
SEPTEMBER 30, 2025
Governmental
Activities
ASSETS
Current assets:
Cash $ 47,625,415
Restricted cash 150,000,000
Interest receivable 376,632
Loan receivable 33,811
Lease receivables 112,784
Non -current assets:
Loan receivable 129,295
Lease receivables 125,985
Capital assets (net of accumulated depreciation):
Land 19,911,165
Construction -in -progress 3,795,102
Furniture and equipment 59,242
Infrastructure 6,610,641
Right to use leased asset 2,542,926
Total assets 231,322,998
LIABILITIES
Accounts payable and accrued liabilities 580,239
Non -current liabilities:
Due within one year:
Bond payable 6,130,000
Lease liabilities 594,057
Due in more than one year:
Bond and loan payable 168,330,819
Lease liabilities 1,997,232
Compensated absences 228,814
Total liabilities 177,861,161
DEFERRED INFLOWS OF RESOURCES
Leases 226,879
NET POSITION
Net investment in capital assets 30,327,787
Restricted for capital projects 150,000,000
Unrestricted (deficit) (127,092,829)
Total net position $ 53,234,958
The accompanying notes are an integral part of the basic financial statements.
8
CITY OF MIAMI SOUTHEAST OVERTOWN PARK
WEST COMMUNITY REDEVELOPMENT AGENCY
(A COMPONENT UNIT OF THE CITY OF MIAMI, FLORIDA)
STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30, 2025
Expenses
Program
Revenues
Net Revenue
(Expense) and
Charges for Changes in Net
Services Position
Functions/Programs
Governmental Activities:
General government $ 4,016,863 $ 174,374 $ (3,842,489)
Community redevelopment 51,174,986 - (51,174,986)
Interest on long-term obligations 1,171,240 - (1,171,240)
Total governmental activities $ 56,363,089 $ 174,374 (56,188,715)
General revenues:
Tax increment revenue 52,653,923
Other 5,142,891
Investment income 2,356,939
Total general revenues 60,153,753
Change in net position 3,965,038
Net position - beginning of year 49,269,920
Net position - end of year $ 53,234,958
The accompanying notes are an integral part of the basic financial statements.
9
CITY OF MIAMI SOUTHEAST OVERTOWN PARK
WEST COMMUNITY REDEVELOPMENT AGENCY
(A COMPONENT UNIT OF THE CITY OF MIAMI, FLORIDA)
BALANCE SHEET- GOVERNMENTAL FUNDS
SEPTEMBER 30, 2025
ASSETS
Cash
Restricted cash
Interest receivable
Loan receivable
Lease receivables
Total assets
Major funds
Special
revenue
5 44,615,474
376,632
163,106
24,749
Capital projects
$
150,000,000
Non -major
governmental
Debt service fund
$
Total
governmental
funds
$ 3,009,941 $ 47,625,415
150,000,000
376,632
163,106
214.020 238.769
5 45,179,961 $ 150,000,000 $ - $ 3,223,961 $ 198,403,922
LIABILITIES
Accounts payable and accrued liabilities 5 410,528 $
DEFERRED INFLOWS OF RESOURCES
Leases 21,562
FUND BALANCES
Non Spendable:
Loan receivable
Lease receivables
Spendable:
Restricted
Committed
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
129,295
3,187
43,059,908
1, 555,481
44,747,871 150,000,000
150,000,000
$
$ 169,711 $ 580,239
205,317
1,283,394
1,565,539
226,879
129,295
3,187
150,000,000
44,343,302
3,121,020
2,848,933 197,596,804
s 45,179,961 $ 150,000,000 $ - $ 3,223,961 $ 198,403,922
The accompanying notes are an integral part of the basic financial statements.
10
CITY OF MIAMI SOUTHEAST OVERTOWN PARK
WEST COMMUNITY REDEVELOPMENT AGENCY
(A COMPONENT UNIT OF THE CITY OF MIAMI, FLORIDA)
RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
YEAR ENDED SEPTEMBER 30, 2025
Total fund balance - governmental funds $ 197,596,804
Amounts reported for governmental activities in the statement of net
position consist of:
Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds. 32,919,076
Long-term liabilities are not due and payable in the current period
and therefore are not reported in the funds:
Lease liabilities (2,591,289)
Bonds payable (172,751,955)
Loan payable (1,708,864)
Compensated absences (228,814) (177,280,922)
Net position of governmental activities $ 53,234,958
The accompanying notes are an integral part of the basic financial statements.
11
CITY OF MIAMI SOUTHEAST OVERTOWN PARK
WEST COMMUNITY REDEVELOPMENT AGENCY
(A COMPONENT UNIT OF THE CITY OF MIAMI, FLORIDA)
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2025
Major funcs Non -major Total
Special governmental governmental
revenue Capital project Debt service fund funds
REVENUES
Tax increment $ 52,653,923 $ - $ - $ - $ 52,653,923
Leases 83,122 91,252 174,374
Investment income 2,165,227 191,712 2,356,939
Other 4,663,900 - 1,346 477,645 5,142,891
Total revenues 59,566,172 1,346 760,609 60,328,127
EXPENDITURES
Current:
General government 3,976,462 - 3,976,462
Community redevelopment 48,350,782 2,258,125 50,608,907
Debt service:
Principal 515,778 23,945,000 24,460,778
Interest and other charges 59,859 - 1,111,381 - 1,171,240
Other debt service cost - 2,198,074 2,198,074
Total expenditures 52,902,881 - 27,254,455 2,258,125 82,415461
Excess (deficiency) of revenues over
(under) expenditures 6,663,291 (27,253,109) (1,497,5161 (22,087,334)
OTHER FINANCING SOURCES (USES)
Lease liability issued
Issuance of debt
Premium from issuance of debt
Transfers in
Transfers out
Total other financing sources (uses)
559,829
(4,501,154)
559,829
150,000,000 11,910,060 - 161,910,000
10,841,955 10,841,955
4,501,154 - 4,501,154
(4,501,154)
(3,941,325) 150,000,000 27,253,109 - 173,311,784
Net change in fund balances 2,721,966 150,000,000 - (1,497,516) 151,224,450
Fund balances - beginning of year 42,025,905 4,346,449 46,372,354
Fund balances - end of year $ 44,747,871 $ 150,000000 $ - $ 2,848,933 $ 197,596,804
The accompanying notes are an integral part of the basic financial statements.
12
CITY OF MIAMI SOUTHEAST OVERTOWN PARK
WEST COMMUNITY REDEVELOPMENT AGENCY
(A COMPONENT UNIT OF THE CITY OF MIAMI, FLORIDA)
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30, 2025
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of activities
are different because:
The governmental funds reported capital outlays as expenditures,
however, in the statement of activities, the cost of those assets is
allocated over their estimated useful lives:
Expenditures for capital assets
Depreciation expense
Loss on disposal of capital assets
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:
Increase in compensated absences
The issuance of long-term debt provides current financial resources to
governmental funds, while the repayment of principal of long-term
debt consumes the current financial resources of governmental funds.
Neither transaction has any effect on net position. Also,
governmental funds report the effect of premiums, discounts and
similar items when debt is first issued, whereas these amount are
deferred and amortized on the statement of activities.
Lease liability issued
Issuance of bonds
Premium on issuance of bonds
Principal payments on lease liabilities
Principal payments on long-term debt
Amortization of bond premium
Change in net position of governmental activities
1,292,435
(838,014)
(266,047)
$ 151,224,450
188,374
(40,401)
(559,829)
(161,910,000)
(10,841,955)
515,778
23,945,000
1,443,621 (147,407,385)
$ 3,965,038
The accompanying notes are an integral part of the basic financial statements.
13
CITY OF MIAMI SOUTHEAST OVERTOWN
PARK WEST COMMUNITY REDEVELOPMENT AGENCY
(A COMPONENT UNIT OF THE CITY OF MIAMI, FLORIDA)
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30. 2025
1. Summary of Significant Accounting Policies
This summary of the City of Miami Southeast Overtown Park West Community Redevelopment Agency
(the Agency) significant accounting policies is presented to assist the reader in interpreting the basic
financial statements. The policies are considered essential and should be read in conjunction with the
basic financial statements.
The accounting policies of the Agency conform to accounting principles generally accepted in the United
States of America applicable to governmental units. This report, the accounting systems and
classification of accounts conform to standards of the Governmental Accounting Standards Board
(GASB), which is the accepted standard -setting body for establishing governmental accounting and
financial reporting principles. The following is a summary of the more significant policies:
A. Reporting Entity
The Agency was established in 1983, by the City of Miami, Florida (the City) under the provisions of
Section 163, Florida Statutes. 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 in the Southeast Overtown area. The board of directors of the
Agency is comprised of the five members of the City commission and are separate, distinct and
independent from the governing body of the City.
The City entered into Interlocal Cooperation Agreements, dated March 31, 1982, with Miami -Dade
County, Florida (the County) and related ordinances of the City and County whereby tax increment
revenue collected by the parties would be paid to the Agency and used in accordance with the approved
budgets of the redevelopment plans and terms and conditions of the Interlocal Agreements for the
benefit of the Agency.
For financial reporting purposes, the Agency is a component unit of the City and is thus included in the
City's comprehensive annual financial report as a blended component unit.
B. Government -wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all the nonfiduciary activities of the Agency. For the most part, the
effect of interfund activity has been removed from these statements. Governmental activities, which
normally are supported by taxes and intergovernmental revenues, are reported separately from
business —type activities, which rely to a significant extent on fees and charges for support. The Agency
does not have any business -type activities.
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. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues
Separate financial statements are provided for the governmental funds. Major individual governmental
funds are reported as separate columns in the fund financial statements.
14
CITY OF MIAMI SOUTHEAST OVERTOWN
PARK WEST COMMUNITY REDEVELOPMENT AGENCY
(A COMPONENT UNIT OF THE CITY OF MIAMI, FLORIDA)
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30. 2025
1. Summary of Significant Accounting Policies (continued)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are
recorded when a liability is incurred, regardless of the timing of related cash flows.
Governmental fund financial statements are reported using the current financial resource measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
Agency considers revenues to be available if they are collected within 60 days of the end of the current
fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to compensated
absences and claims and judgments, are recorded only when payment is due. Tax increment revenue,
intergovernmental revenues, parking fees, lease revenues, and interest associated with the current
fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of
the current fiscal period. Only the portion due within the current fiscal period is considered to be
susceptible to accrual as revenue of the current period. All other revenue items are considered to be
measurable and available only when cash is received by the government.
The Agency reports the following major governmental funds:
■ The Special Revenue Fund accounts for the proceeds of specific revenue sources (other than
major capital projects) that are legally restricted for specified purposes. Specifically, this fund
reports tax increment revenue collected from the City, County and The Children's Trust:
• The Capital Projects Fund accounts for the proceeds from the Tax Increment Revenue Bonds,
Series 2025A restricted for specific capital projects in accordance with the bond indenture; and
■ The Debt Service Fund accounts for the accumulation of resources for, and the payment of, bond
principal and interest on the Tax Increment Revenue Bonds, Series 2014A, which was refunded.
The Agency reports the following non -major governmental fund:
• The Non-TIF Special Revenue Fund accounts for the proceeds of revenue sources that are not
tax increment revenue and/or other revenue sources not legally restricted for specified purposes.
D. Cash and Restricted Cash
The Agency's cash and restricted cash includes demand deposits and pooled cash. The Agency
participates in the City's pool on a dollar equivalent and daily transaction basis. Investment income
(which includes interest and unrealized gains and losses) is distributed monthly based on a monthly
average balance. Equity in pooled cash is reflected as Cash on the Agency's statement of net position
and governmental funds balance sheet. Unspent proceeds from the Tax Increment Revenue Bonds,
Series 2025A are considered restrictec because their use is limited by the applicable bond indenture.
E. Lease Receivables
The Agency's lease receivables are measured at the present value of lease payments expected to be
received during the lease term. A deferred inflow of resources is recorded for the leases. The deferred
inflow of resources is recorded 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.
15
CITY OF MIAMI SOUTHEAST OVERTOWN
PARK WEST COMMUNITY REDEVELOPMENT AGENCY
(A COMPONENT UNIT OF THE CITY OF MIAMI, FLORIDA)
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30. 2025
1. Summary of Significant Accounting Policies (continued)
F. Capital Assets
Capital assets, which include property, plant, and equipment are reported in the applicable
governmental type activities column in the government -wide financial statements. Capital assets are
defined by the Agency as assets with an initial, individual cost of more than $1,000 and an estimated
useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost
if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of
donation. The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets lives are not capitalized. Major outlays For capital assets and improvements are
capitalized as projects are constructed.
The Agency has recorded a right to use leased asset for its office facility. The right to use leased asset is
initially measured at an amount equal to the initial measurement of the related lease liability plus any
lease payments made prior to the lease term, less lease incentives, and plus ancillary charges necessary
to place the lease into service, if any. The right to use leased asset is amortized on a straight-line basis
over the life of the related lease.
Capital assets of the Agency are depreciated using the straight-line method over the following estimated
useful lives:
Assets Years
Furniture and equipment 5
Infrastructure 5-35
Right of use leased asset 3-10
H. Deferred Inflows of Resources
The statement of financial position reports a separate section of deferred inflows of resources which
represents an acquisition of net position that applies to a future period and is not recognized an inflow
of resources or revenue until that time. The Agency has one type of resource, which occurs under a
modified accrual basis of accounting in this category, leases, reported in the governmental fund balance
sheet. The Special Revenue fund reports unavailable revenue from leases. These amounts are deferred
and recognized as an inflow of revenue in the period that the amounts become available.
I. Fund Balance / Net Position
Fund balance
Fund balances for governmental funds are reported in classifications that comprise a hierarchy based
primarily or the extent to which the government is bound to honor constraints on the specific purposes
for which amounts in those funds can be spent, as follows:
• Non spendable fund balance - amounts that cannot be spent because they are either (a) not in
spendable form or (b) legally or contractually required to be maintained intact.
• Restricted fund balance - amounts that are restricted to specific purposes when constraints placed
on the use of resources are either by (a) externally imposed by creditors (such as debt covenants),
grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through
constitutional provisions or enabling legislations.
■ Committed fund balance - amounts that can only be used for specific purposes pursuant to
constraints imposed by formal action of the government's highest level of decision -making authority.
16
CITY OF MIAMI SOUTHEAST OVERTOWN
PARK WEST COMMUNITY REDEVELOPMENT AGENCY
(A COMPONENT UNIT OF THE CITY OF MIAMI, FLORIDA)
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30. 2025
1. Summary of Significant Accounting Policies (continued)
I. Fund Balance / Net Position (continued)
• Assigned fund balance - amounts that are constrained by the government's intent to be used for
specific purposes, but are neither restricted nor committed.
• Unassigned fund balance - amounts that have not been assigned to other funds and that have not
been restricted, committed, or assigned to specific purpose within the general fund.
When both restricted and unrestricted amounts are available for use, it is the Agency's practice to use
restricted resources first. Additionally, the Agency would first use committed, then assigned, and lastly
unassigned amounts of unrestricted fund balance.
Net position
The government -wide financial statements utilize a net position presentation. Net position can be
categorized as net investment in capital assets, restricted, or unrestricted. The first category represents
capital assets, less accumulated depreciation and net of any outstanding debt associated with the
acquisition of capital assets. Restricted net position represents amounts that are restricted by
requirement of debt indenture or enabling legislation. Unrestricted net position represents the net
position of the Agency which are not restricted for any project or purpose.
3. Bond premiums, discounts and issuance costs
In the government -wide financial statements, bond premiums and discounts are deferred and amortized
over the life of the bonds using the straight-line method. Bonds payable are reported net of the
applicable bond premium or discount. In the fund financial statements, governmental fund types
recognize bond premiums and discounts, as well as bond issuance costs 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 are reported as other financing uses. Issuance
costs are reported as community redevelopment expenditures in the fund financial statements and
community redevelopment expense in the government -wide financial statements.
K. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and assumptions that affect the
amounts reported in the financial statements and accompanying notes. Although these estimates are
based on management's knowledge of current events and actions it may undertake in the future, they
may ultimately differ from actual results.
2. Cash and Restricted Cash
At September 30, 2025, the Agency's cash and restricted cash consists of the following:
Cash:
Demand deposits $ 816,034
Poo ed cash 46,809,381
$ 47,625,415
Restricted Cash:
Demand deposits $ 150,000,000
17
CITY OF MIAMI SOUTHEAST OVERTOWN
PARK WEST COMMUNITY REDEVELOPMENT AGENCY
(A COMPONENT UNIT OF THE CITY OF MIAMI, FLORIDA)
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30. 2025
2. Cash (continued)
Custodial Credit Risk is the risk that in the event of a bank fal ure, the Agency's deposits may not be
returned to it. In addition to insurance provided by the Federal Deposit Insurance Corporation (FDIC),
deposits are held in banking institutions approved by the State of Florida, State Treasurer to hold public
funds. Under the Florida Statutes Chapter 280, "Florida Security for Public Deposits Act", the State
Treasurer requires all qualified public depositories to deposit with the Treasurer or another banking
institution eligible collateral. In the event of a failure of a qualified public depository, the remaining
public depositories would be responsible for covering any resulting losses.
3. Loan Receivable
On February 1, 2017, the Agency entered into a loan agreement with one of its Overtown Shopping
Center tenants to fund the cost of construction of the leased property in the original amount of
$400,000. Interest, at a fixed rate of 4%, and principal and interest payments are due monthly in the
amount of $3,310, commencing on May 1, 2017 and maturing on March 1, 2030.
As of September 30, 2025, future minimum principal payments to be received on the loan are as
follows:
Fiscal year Amount
2026 $ 33,811
2027 35,188
2028 36,622
2029 38,114
2030 19,371
$ 163,106
4. Lease Receivables
Lease receivables at September 30, 2025 consist of the following tenant leases at the Agency -owned
Overtown Shopping Center:
Tenant lease entered into on November 25, 2014, with the most recent
amendment to the agreement on April 4, 2022. Remaining lease term as of
October 1, 2021 was 65 months. Monthly rent payments due in accordance with
the amended agreement is $577 per month, with 3% escalations every March 1st,
The lease receivable is measured as the present value of the remaining minimum
rent payments expected to be received during the lease term at a discount rate of
6%, which is the Agency's incremental borrowing rate.
Tenant lease commencing on July 1, 2023 for a term of 36 months. Monthly rent
payments due is $1,524 per month, with 4% escalations every July 15t. The lease
receivable is measured as the present value of the remaining minimum rent
payments expected to be received during the lease term at a discount rate of 6%,
which is the Agency's incremental borrowing rate.
Amount
$ 10,460
14,289
18
CITY OF MIAMI SOUTHEAST OVERTOWN
PARK WEST COMMUNITY REDEVELOPMENT AGENCY
(A COMPONENT UNIT OF THE CITY OF MIAMI, FLORIDA)
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30. 2025
4. Lease Receivables (continued)
Tenant lease commencing ❑n July 19, 2024 for a term of 41 months. Monthly rent
payments due is $8,317 per month, with 2.5% escalations every July 19th. The
lease receivable is measured as the present value of the minimum rent payments
expected to be received during the lease term at a discount rate of 6%, which is
the Agency's incremental borrowing rate.
Amount
214,020
Total lease receivables $ 238,769
In fiscal year 2025, the Agency recognized a total of $174,374 of lease revenue and $19,141 of interest
revenue under the leases.
As of September 30, 2025, future minimum lease payments to be received on the leases are as follows:
Fiscal
Year(s) Principal Interest Total
2026 $ 112,784 11,166 123,950
2027 100,687 4,763 105,450
2028 25,298 253 25,551
$ 238,769 16,182 254,951
5. Capital Assets
Capital asset activity for the fiscal year ended September 30, 2025 was as follows:
Capital assets, not being depreciated:
Land
Construction -in -progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Furniture and equipment
Infrastructure
Right to use leased asset - office
Total capital assets, being depreciated
Less accumulated depreciation for:
Furniture and equipment
Infrastructure
Right to use leased asset - office
Total accumulated depreciation
Total capital assets, being depreciated, net
Total capital assets (net of accumulated
depreciation)
During fiscal year 2025, depreciation expense
Redevelopment.
Balance
9/30/2024
Transfers / Transfers / Balance
Additions Deletions 9/30/2025
$ 19,911,165
3,077,484 717,618
22,988,649 717,618
- 19,911,165
- 3,795,102
- 22,706,267
224,691
11,023,787
3,382,789
14,631,267
14,988
559,830
574,818
395,769
395,769
239,679
L0,628,018
3,942,619
L4,810,316
170,666
3,864,624
853,925
4,889,215
9,742,052
$ 32,730,701
in
9,771 -
282,475 129,722
545,768
838,014 129,722
(263,196) 266,047
454,422 266,047
the amount of $838,014 was charged
180,437
4,017,377
1,399,693
5,597,507
9,212,809
32,919,076
to Community
19
CITY OF MIAMI SOUTHEAST OVERTOWN
PARK WEST COMMUNITY REDEVELOPMENT AGENCY
(A COMPONENT UNIT OF THE CITY OF MIAMI, FLORIDA)
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30. 2025
6. Long -Term Obligations
The changes in the long-term obligations for the year ended September 30, 2025 are summarized as
follows:
Amount due
Balance Balance within one
9/30/2024 Additions Deletions 9/30/2025 year
Tax Increment Revenue Bonds,
Series 2014A 23,945,000 - (23,945,000) -
Plus deferred amounts for
issuance premium, Series 2014A 1,443,621 - (1,443,621) -
Tax Increment Revenue Bonds,
Series 2025A - 142,235,000 - 142,235,000 2,735,000
Tax Increment Revenue
Refunding Bonds, Series 2025E 19,675,000 19,675,000 3,395,000
Plus deferred amounts for
issuance premium, Series 2025A
and 2025B - 10,841,955 - 10,841,955
Total bonds payable 25,388,621 172,751,955 (25,388,621) 172,751,955 6,130,000
Gran Centra° Loan 1,708,864 - - 1,708,864 -
Total bonds and loan payable 27,097,485 172,751,955 (25,388,621) 174,460,819 6,130,000
Lease liabilities 2,547,237 559,830 (515,778) 2,591,289 594,057
Compensated absences 188,413 40,401 - 228,814 -
Total long-term obligations $ 29,833,135 173,352,186 (25,904,399) 177,280,922 6,724,057
Tax Increment Revenue and Tax Increment Revenue Refunding Bonds
On August 28, 2025, the Agency issued Tax Increment Revenue Bonds, Series 2025A ("Series 2025A")
in the principal amount of $142,235,000, and Tax Increment Revenue Refunding Bond, Series 2025E
("Series 2025B") in the principal amount of $19,675,000, maturing in 2042 and 2030, respectively, with
interest rates ranging from 5% to 5.25% payable annually on March 1st These bonds are secured by a
pledge of certain tax increment reverue amounts received from the City and County on the Southeast
Overtown/Park West Community Redevelopment area.
The proceeds of the Series 2025A bonds are to be used to pay all or part of the costs of the
construction and/or rehabilitation of certain redevelopment projects undertaken pursuant to the
Redevelopment Plan. The proceeds of the Series 2025B bonds were used to refund all of the Series
2014A-1 bonds and pay the costs of issuance related to the Series 202513 bonds.
The annual debt service requirements for the bonds as of September 30, 2025, are as follows:
Series 2025A
Series 2025E Tota
Fiscal Year(s) Principal Interest Principal Interest Principal Interest
2026 $ 2,735,000 7,170,652 3,395,000 907,073 6,130,000 8,077,725
2027 2,945,000 6,968,825 3,570,000 724,750 6,515,000 7,693,575
2028 3,100,000 6,817,700 3,745,000 541,875 6,845,000 7,359,575
2029 3,265,000 6,658,575 3,935,000 349,875 7,200,000 7,008,450
2030 2,540,000 6,513,450 5,030,000 125,750 7,570,000 6,639,200
2031-2035 44,075,000 26,960,375 44,075,000 26,960,375
2036-2040 56,595,000 14,439,625 - - 56,595,000 14,439,625
2041-2042 26,980,000 1,435,087 - 26,980,000 1,435,087
$ 142,235,000 76,964,289 19,675,000 2,649,323 161,910,000 79,613,612
20
CITY OF MIAMI SOUTHEAST OVERTOWN
PARK WEST COMMUNITY REDEVELOPMENT AGENCY
(A COMPONENT UNIT OF THE CITY OF MIAMI, FLORIDA)
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30. 2025
6. Long -Term Obligations (continued)
Gran Central Loan
On January 20, 1988, the City entered into a loan agreement with the Gran Central Corporation (GCC)
to finance 50% of the cost to acquire a parcel of property within the SEOPW CRA Area and relocate and
widen Northwest First Avenue between Northwest First Street and Northwest Eighth Street. The loan, in
the amount of $1,708,864, does not bear interest and is payable from tax increment funds received
from the City and County within a designated area defined in the loan documents on a junior and
subordinate basis to the lien granted to holders of the $11,500,000 Community Redevelopment
Revenue Bonds, Series 1990.
GCC was to be fully repaid by the year 2008 with annual payments to be made to the extent funds are
generated by tax increment revenue within the designated area, as defined in the loan document, is
available after required payments for the Series 1990 Bonds debt service and any requirement of the
reserve fund or reserve product, as defined in the Series 1990 Bond indenture. GCC has subsequently
been acquired by another company (referred to as the "predecessor company"), which has taken over
the loan. Although the loan was to be fully repaid by 2008, in accordance with the loan agreement,
management believes that since no tax increment funds have been generated within the designated
area, as defined in the loan documents, no payment on the loan is required, and will only become due
when any such tax increment funds have been generated within the designated area. Management
does not believe that any such tax increment funds will ever be generated within the designated area.
Lease liabilities
The Agency has the following operating leases as of September 30, 2025:
• On August 18, 2022, the Agency entered into an agreement to lease an office facility, expiring in
August 2031. The lease was recorded at the present value of the remaining future minimum lease
payments. The agreement requires 10 annual payments of $280,000 per year. The lease liability is
measured at a discount rate of 6%.
• On August 1, 2024, the Agency entered into an agreement to lease an office facility, expiring in
August 2027. The lease was recorded at the present value of the remaining future minimum lease
payments. The agreement requires 36 monthly payments of $19,460, with 3% escalations every
August 15t. The lease liability is measured at a discount rate of 6%.
• On February 11, 2025, the Agency entered into an agreement to sublease retail space, expiring in
February 2035. The lease was recorded at the present value of the remaining future minimum lease
payments. The agreement requires 120.5 monthly payments of $1,400. The lease liability is
measured at a discount rate of 6%.
• On February 14, 2025, the Agency entered into an agreement to lease retail/office facilities, expiring
in February 2035. The lease was recorded at the present value of the remaining future minimum
lease payments. The agreement requires 120.5 monthly payments of $1,667, with 5% escalations
every January 15t. The lease liability is measured at a discount rate of 6%.
• On April 22, 2025, the Agency entered into an agreement to lease a multipurpose space, expiring in
March 2028. The lease was reco-ded at the present value of the remaining future minimum lease
payments. The agreement requires 36 monthly payments of $7,560. The lease liability is measured
at a discount rate of 6%.
21
CITY OF MIAMI SOUTHEAST OVERTOWN
PARK WEST COMMUNITY REDEVELOPMENT AGENCY
(A COMPONENT UNIT OF THE CITY OF MIAMI, FLORIDA)
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30. 2025
6. Long -Term Obligations (continued)
The future minimum lease obligations and the net present value of the minimum lease payments of the
lease agreements as of September 30; 2025, are as follows:
Fiscal
Year(s) Principal Interest Total
2026 $ 594,057 55,941 649,998
2027 581,089 34,581 615,670
2028 351,110 21,395 372,505
2029 303,304 17,421 320,725
2030 307,606 15,315 321,921
2031-2035 454,123 26,691 480,814
$
2,591,289 170,344 2,761,633
7. Fund Balances
At September 30, 2025, the Agency reported the following governmental fund balances:
■ Non spendable fund balance — these amounts represent the long-term portion of the loan
receivable, as well as the difference between the lease receivables and deferred inflows of resources
related to those leases, both of which cannot be spent because those amounts are not in spendable
form.
■ Restricted fund balance — these amounts are restricted for specific capital projects in accordance
with the tax increment revenue bonds, Series 2025A and tax increment revenue refunding bonds,
Series 2025B.
• Committed fund balance - these amounts can only be used for specific purposes pursuant to
constraints imposed by the Board of the Agency. The items cannot be removed unless the Board
removes it in the same mariner it was implemented.
■ Unassigned fund balance - amounts that have not been assigned to other funds and that have not
been restricted, committed, or assigned to specific purpose within the general fund.
Below is a table of fund balance categories and classifications, by fund, at September 30, 2025:
Non -major
Special Capital Governmental
Revenue Projects Fund
Non Spendable:
Loan receivable $ 129,295
Lease receivables 3,187
Spendable:
Restricted - 150,000,000
Committed to community redevelopment 43,059,908 - 1,283,394
Unassigned 1,555,481 - 1,565,539
Total $ 44,747,871 150,000,000 2,848,933
22
CITY OF MIAMI SOUTHEAST OVERTOWN
PARK WEST COMMUNITY REDEVELOPMENT AGENCY
(A COMPONENT UNIT OF THE CITY OF MIAMI, FLORIDA)
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30. 2025
8. Tax Increment Revenue
The Agency's primary source of revenue is tax -increment funds. This revenue is computed by applying
the operating tax rate for the City and the County, multiplied by the increased value of property located
within the boundaries of the redevelopment areas of the Agency, over the base property value, minus
5%. Both the City and the County are required to fund this amount annually without regard to tax
collections or other obligations.
In fiscal year 2007, the City, County and The Children's Trust (the Trust) entered into an Interlocal
Agreement with the Agency, whereby the Agency would receive from the Trust, on an annual basis, tax
increment revenues derived from the imposition of a half -mil tax levied by the Trust against real
property located within the redevelopment district (referred to as Trust revenues). The Agency agreed
to use the Trust revenues for debt service on, and other obligations relating to, existing debts of the
Agency only after all other available tax increment revenues have been exhausted for such purpose, and
to remit to the Trust on the last day of the Agency's fiscal year, all of the Trust revenues that are not
needed for debt service on, or other obligations relating to, existing debts of the Agency. During 2025,
the Agency remitted a total of $2,250,155 to the Trust.
In fiscal year 2008, the Agency entered into an interlocal agreement with the City, the County and the
City of Miami Omni Community Redevelopment Agency, whereby the Agency may not, for fiscal years
2017 through 2030, budget in excess of 50% of the tax increment revenues collected from certain
projects described in that interlocal agreement. The Agency must return 45% of tax increment revenues
collected from such projects to the taxing authorities which paid such revenues to the Agency.
However, for fiscal year 2025 and beyond, the City Commission, pursuant to resolution R-24-0109,
authorized the City Manager to disburse to the Agency the balance returned to the City for the
development of affordable housing and related infrastructure at or below sixty percent (60%) of the
area median income.
During fiscal year 2025, the amount returned to the County totaled $4,392,728. Also during fiscal year
2025, the amount due to the City but kept by the Agency pursuant to resolution R-24-0109 mentioned
above, totaled $6,853,577.
9. Interfund Transfers
During 2025, The Agency made a transfer of $4,501,154 from the special revenue fund to the debt
service fund to cover debt service expenditures.
10. Special Benefit Plans
(a) 401(a) Deferred Compensation Plan
All employees, including executives and general employees, of the Agency are eligible, after one
year of service, to join the ICMA Retirement Trust 401(a) Deferred Compensation Plan (the Plan).
The Plan agreement requires the Agency to contribute 15% of each executive employee's earnable
compensation, and 5% of each general employee's earnable compensation. Contributions by
executive and general employees are not required. Participants may withdraw funds at retirement
or upon separation based on a variety of payout options. The following information -elates to the
Agency's participation in the 401(a) Deferred Compensation Plan:
Executives General
Employees Employees
Current year's payroll
Current year's employer contributions
$ 965,995 1,154,873
241,499 144,534
23
CITY OF MIAMI SOUTHEAST OVERTOWN
PARK WEST COMMUNITY REDEVELOPMENT AGENCY
(A COMPONENT UNIT OF THE CITY OF MIAMI, FLORIDA)
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30. 2025
10. Special Benefit Plans (continued)
(b) 457(b) Deferred Compensation Plan
All employees, including executives and general employees, of the Agency are eligible to join the
United States Conference of Mayors 457(b) Deferred Compensation Plan (the Plan). The Plan
agreement requires the Agency to contribute 2-5% of each executive employee's earnable
compensation, and is not required to contribute to general employee participants. Contributions by
executive and general employees are not required. Participants may withdraw funds at retirement
or upon separation based on a variety of payout options.
The following information relates to the Agency's participation in the 457(b) Deferred Compensation
Plan:
Current year's payroll
Current year's employer contributions
Executives
Employees
$ 965,995
21,154
11. Risk Management
The Agency is exposed to various risks of losses related to torts; theft or damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. The Agency purchases
commercial insurance for the risks of loss to which it is exposed. Policy limits and deductibles are
reviewed by management and established at amounts to provide reasonable protection from significant
financial loss. There were no losses or claims incurred during the current fiscal year, and there were no
settlements that exceeded insurance coverage during the past three fiscal years.
12.Commitment and Contingencies
(a)The Agency is contractually obligated for approximately $153.6 million at September 30, 2025 for
construction projects, of which $132.5 million of the projects will be funded with the bonds that
were issued in 2025.
(b)The Agency is a defendant in several legal actions. The outcome of these actions cannot be
determined at this time. Management believes that any liability from these actions will not have a
materia effect on the Agency's financial condition.
(c) In fiscal year 2010, the Agency entered into a grant agreement with the City, with two subsequent
amendments during fiscal year 2012, in an amount not to exceed $8 million, plus interest of
approximately $6.1 million, for the renovation of Gibson Park. Payments on the grant will be made
through fiscal year 2030, and are pledged by tax increment funds.
(d) In fiscal year 2015, the Agency entered into an economic incentive agreement with certain
developers in connection with the development of the Miami World Center mixed -use project. The
economic incentive agreement calls for payment to the master developer of a certain percentage of
tax increment revenues generated from the project during the time period from completion of the
first building. During fiscal year 2025, the Agency paid $5.2 million.
24
CITY OF MIAMI SOUTHEAST OVERTOWN
PARK WEST COMMUNITY REDEVELOPMENT AGENCY
(A COMPONENT UNIT OF THE CITY OF MIAMI, FLORIDA)
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30. 2025
12. Commitment and Contingencies (continued)
(e) In fiscal year 2019, the Agency entered into an economic incentive agreement with Downtown
Retail Associates, LLC for the development of Block 55. This project will be a developed as a mixed -
used development of not less than 250,000 square feet of retail, office, restaurant, and
entertainment uses, and not less than 500 residential units. As a development incentive, the Agency
shall pay to Developer an incentive payment equal to up to 70% of the incremental TIF generated
from this specific project.
(f) In fisca year 2021, the Agency entered Into an economic incentive agreement with Grand Central
Miami Holdings, LLC for the development of Block 46. This project contains one hundred (100)
affordable rental units. As a development incentive, the Agency shall pay to Developer an incentive
payment equal to up to 65% of the incremental TIF generated from this specific project. During
fiscal year 2025, the Agency paid $327,236
(g) In fiscal year 2024, the Agency entered into a Housing Subsidy Agreement with Block 55 Residential
L.P. to subsidize the affordability of 289 housing units for individuals Sixty -years of age and older.
The financial commitment for this agreement is $1.6 million per year for a five-year term, not to
exceed $8 million, and is subject to the availability of funding.
13. New Pronouncements Issued
The following pronouncements were recently issued, but were not yet effective for the Agency's fiscal
year ended September 30, 2025. Management will evaluate the effect that the following
pronouncements will have on its financial statements as they become effective:
• GASB Statement No. 103, Financial Reporting Model Improvements
• GASB Statement No. 104, Disclosure of Certain Capital Assets
14. Subsequent events
The Agency evaluated subsequent events through February 3, 2026, the date the financial
statements were available to be issued, and does not believe that there are any such events or
transactions that require disclosure.
25
CITY OF MIAMI SOUTHEAST OVERTOWN PARK
WEST COMMUNITY REDEVELOPMENT AGENCY
(A COMPONENT UNIT OF THE CITY OF MIAMI, FLORIDA)
BUDGETARY COMPARISON SCHEDULE - SPECIAL REVENUE FUND
(REQUIRED SUPPLEMENTARY INFORMATION - UNAUDITED)
YEAR ENDED SEPTEMBER 30, 2025
Budgeted amounts
Original Final
REVENUES
Tax increment revenues $ 52,421,145
Leases
Investment income
Other
Total revenues 52,421,145
EXPENDITURES
Current:
General government
Community redevelopment
Debt service:
Principal
Interest and other charges
Total expenditures
Excess (deficiency) of revenues over
(under) expenditures
OTHER FINANCING SOURCES (USES)
Lease liability issued
Transfers out
Net carryover fund balance
Total other financing sources (uses)
Net change in fund balance
Fund balances - beginning of year
Fund balances - end of year
Actual
52,421,145 $ 52,653,923
83,122
2,165,227
4,663,900
52,421,145 59,566,172
Variance with
final budget -
positive
(negative)
$ 232,778
83,122
2,165,227
4,663,900
7,145,027
5,216,607 5,216,607 3,976,462 1,240,145
86,066,541 85,066,541 48,350,782 37,715,759
515,778 (515,778)
59,859 (59,859)
91,283,148 91,283,148 52,902,881 38,380,267
(38,862,003) (33,862,003) 6,663,291 45,525,294
(4,502,500)
43,364, 503
38,862,003
(4,502,500)
43,364, 503
38,862,003 (3,941,325)
$ 2,721,966
42,025,905
$ 44,747,871
559,829
(4,501,154)
The note to the required supplementary information is an integral part of this schedule.
559,829
1,346
(43,364,503)
(42,803,328)
$ 2,721,966
26
CITY OF MIAMI SOUTHEAST OVERTOWN
PARK WEST COMMUNITY REDEVELOPMENT AGENCY
(A COMPONENT UNIT OF THE CITY OF MIAMI, FLORIDA)
NOTES TO SUPPLEMENTARY INFORMATION
SEPTEMBER 30. 2025
1. Budgetary Policy
The Agency adopts an annual budget for the operations of the Special Revenue Fund in accordance with
generally accepted accounting principles.
The budget is adopted on a modifed accrual basis of accounting, consistent with U.S. generally
accepted accounting principles. Budgetary control is maintained at the fund level.
27
Ta.vlooc, ,-Pc.
Certified irn lic / ccbL4Yi'tdvirr Coosrnl-tdo-r
13453 Sw 105th Avc, INiami, Florida 3317,ry 11. (305) 7Z4-150Z
REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED
ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
The Board of Directors
City of Miami Southeast Overtown Park
West Community Redevelopment Agency:
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards issued
by the Comptroller General of the United States, the financial statements of the governmental activities and
the major fund of the City of Miami Southeast Overtown Park West Community Redevelopment Agency (the
Agency) as of and for the year ended September 30, 2025, and the related notes to the financial
statements, which collectively comprise the Agency's basic financial statements, and have issued our report
thereon dated February 3, 2026.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Agency's internal
control over financial reporting (internal control) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but
not for the purpose of expressing an opinion on the effectiveness of the Agency's internal control.
Accordingly, we do not express an opinion on the effectiveness of the Agency's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and
correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of
deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of
the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe
than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
and significant deficiencies may exist that were not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Agency's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
28
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this
communication is not suitable for any other purpose.
Miami, Florida
February 3, 2026
29
f
X
-Ric Vile Two
Certified Tri Iic Accvvtw-tnw-1- c. Covisrni-ioot
13453 SW 105' Elva, Miami, Florida 3317(v l T. (305) 7Z0•2-502-
MANAGEMENT LETTER IN ACCORDANCE WITH THE
RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA
The Board of Directors
City of Miami Southeast Overtown Park
West Community Redevelopment Agency:
Report on the Financial Statements
We have audited the financial statements of the City of Miami Southeast Overtown Park West Community
Redevelopment Agency (the Agency), a Component Unit of the City of Miami, Florida, as of and for the
fiscal year ended September 30, 2025, and have issued our report dated February 3, 2026.
Auditor's Responsibility
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States; and Chapter 10.550, Rules of the Florida Auditor General.
Other Report Requirements
We have issued our Independent Auditors' Reports on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with
Government Auditing Standards. Disclosures in that report, which is dated February 3, 2026, should be
considered in conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective
actions have been taken to address findings and recommendations made in the preceding annual financial
audit report. Corrective action has been taken to address the finding and recommendation that was
reported in the preceding annual financial audit report.
Official Title and Legal Authority
Section 10.554(1)0)4., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in this
management letter, unless disclosed in the notes to the financial statements. Such disclosures are made in
note 1 to the Agency's financial statements.
Financial Condition and Management
Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, requires that we report the results of
our determination as to whether or not the Agency has met one or more of the conditions described in
Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with
our audit, we determined that the Agency did not meet any of the conditions described in Section
218.503(1), Florida Statutes.
Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial
condition assessment procedures as of September 30, 2025. It is management's responsibility to monitor
the Agency's financial condition, and our financial condition assessment was based in part on
representations made by management and the review of financial information provided by same.
30
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations
to improve financial management. In connection with our audit, we did not have any such
recommendations.
Property Assessed Clean Energy (PACE) Programs
As required by Section 10.554(1)(i)6.a., Rules of the Auditor General, a statement is required as to whether
a PACE program authorized pursuant to Section 163.081 or Section 163.082, Florida Statutes, did or did not
operate within the Agency's geographical boundaries during the fiscal year under audit. The Agency did not
have a PACE program operate within its geographical boundaries during the fiscal year under audit.
Specific Information
As required by Section 218.39(3)(a), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor
General, the Agency reported:
a. A total of 20 employees compensated in the last pay period of the Agency's fiscal year.
b. No independent contractors to whom nonemployee compensation was paid in the last month of the
Agency's fiscal year.
c. Compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency
totaled $2,159,994 for the fiscal year.
d. No compensation earned by or awarded to nonemployee independent contractors, whether paid or
accrued, regardless of contingency for the fiscal year.
e. The following is a list of construction projects with a total cost of at least $65,000 approved by the
Agency that is scheduled to begin on or after October 1 of the fiscal year being reported:
Project Name
Project
Expenditures
for FYE
9/30/2025
Quadplex Affordable Housing Project at 244 NW 16t'" St.
$ 481,480
f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the
beginning of the fiscal year being reported if the Agency amends a final adopted budget under Section
189.016(6), Florida Statutes — is not applicable, as the Agency did not amend a final adopted budget
under Section 189.016(6), Florida Statutes.
Additional Matters
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with
provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred,
that have an effect on the financial statements that is less than material but which warrants the attention of
those charged with governance. In connection with our audit, we did not have any such findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Florida Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor
General, and the Board of Directors and management of the Agency, and is not intended to be and should
not be used by anyone other than these specified parties.
Miami, Florida
February 3, 2026
31
X
ic106 T Iviobc,
Certified Yrnblic Accornvitm CotisrnI-#061t
13453 SW 10a"' Ave, Miami, -Florida 3311(pi T. (i() 714-2502
INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE
WITH SECTIONS 163.387(6) AND (7), FLORIDA STATUTES
The Board of Directors
City of Miami Southeast Overtown Park
West Community Redevelopment Agency:
We have examined the City of Miami Southeast Overtown Park West Community Redevelopment Agency
(the Agency), a Component Unit of the City of Miami, Florida compliance with Sections 163.387(6) and (7),
Florida Statutes regarding the redevelopment trust fund during the year ended September 30, 2025.
Management is responsible for the Agency's compliance with those requirements. Our responsibility is to
express an opinion on the Agency's compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence
about the Agency's compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances. We believe that our examination provides a reasonable basis
for our opinion. Our examination does not provide a legal determination on the Agency's compliance with
specified requirements.
In our opinion, the Agency complied, in all material respects, with the aforementioned requirements for the
year ended September 30, 2025.
This report is intended solely for the information and use of the Florida Legislative Auditing Committee,
members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, and
the Board of Directors and management of the Agency, and is not intended to be and should not be used
by anyone other than these specified parties.
' ut f ,&, PA
Miami, Florida
February 3, 2026
32