HomeMy WebLinkAboutBack-Up DocumentsCity of Miami, Florida
Management Letter in Accordance
With Chapter 10.550, Rules of the
Florida Auditor General and
Independent Accountant's Report
on the Examination of the City's Compliance
with Section 218.415, Florida Statutes
Fiscal Year Ended September 30, 2018
Contents
Management Letter in Accordance with
Chapter 10.550 of the Rules of the
Florida Auditor General
1-3
Appendix A —Current Year's Findings and Recommendations to Improve Financial
Management 4-6
Appendix B — Status of Prior Years' Findings and Recommendations to Improve Financial 7-10
Management
Independent Accountant's Report
on the Examination of the City's Compliance
with Section 218.415, Florida Statutes
11
Management Letter in Accordance with
Chapter 10.550 of the Rules of the
Florida Auditor General
Honorable Mayor and Members of the
City Commission
City of Miami, Florida
Report on the Financial Statements
We have audited the financial statements of the governmental activities, the aggregate discretely
presented component units, each major fund, and the aggregate remaining fund information of the City of
Miami, Florida (the City), as of and for the fiscal year ended September 30, 2018, and have issued our
report thereon dated March 29, 2019. Our report includes an emphasis of matter paragraph for the
adoption of Governmental Accounting Standards Board Statement 75, Accounting and Financial
Reporting for Postemployment Benefits Other Than Pensions. Our report also includes a reference to
other auditors who audited the financial statements of the following component units and funds:
Component Units / Funds Classification
• Southeast Overtown Park West Redevelopment Agency nonmajor special revenue fund
• Omni Community Redevelopment Agency nonmajor special revenue fund
• Midtown Community Redevelopment Agency nonmajor special revenue fund
• Virginia Key Beach Park Trust nonmajor special revenue fund
• Liberty City Community Revitalization District Trusts nonmajor special revenue fund
• Firefighters' and Police Officers' Retirement Trust
• General Employees' and Sanitation Employees'
Retirement Trust and Other Managed Trusts
• Miami Sports and Exhibition Authority
• Downtown Development Authority
• Bayfront Park Management Trust
• Coconut Grove Business Improvement District
• Wynwood Business Improvement District
aggregate remaining fund information
aggregate remaining fund information
discretely presented component unit
discretely presented component unit
discretely presented component unit
discretely presented component unit
discretely presented component unit
This management letter does not include the results of the other auditors' testing of compliance and other
matters that are reported on separately by those auditors.
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Auditor's Responsibility
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States.
Other Reports and Schedule
We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance
with Government Auditing Standards; Independent Auditor's Report on Compliance for Each Major
Federal Program and State Project and Report on Internal Control over Compliance; Schedule of
Findings and Questioned Costs (the schedule); and Independent Accountant's Report on an
examination conducted in accordance with AICPA Professional Standards, AT -C Section 315, regarding
compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Those
reports and schedule are dated March 29, 2019, except for the examination report on the City's
compliance with Section 218.415, Florida Statutes, Local Government Investment Policies, the report on
compliance for each major federal program and state project and report on internal control over
compliance, for which the date for those reports are April 30, 2019. Disclosures in those reports and
schedule should be considered in conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)l ., Rules of the Auditor General, requires that we determine whether or not corrective
actions have been taken to address findings and recommendations made in the preceding annual
financial audit report. Corrective actions taken to address the findings and recommendations made in the
preceding annual financial audit report are disclosed in Appendix B — Status of Prior Years' Findings and
Recommendations to Improve Financial Management.
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in this
management letter, unless disclosed in the notes to the financial statements. This is disclosed in Note 1
of the financial statements.
Financial Condition and Management
Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate
procedures and communicate the results of our determination as to whether or not the City has met one
or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific
condition(s) met. In connection with our audit, we determined that the City did not meet any of the
conditions described in Section 218.503(1), Florida Statutes.
Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial
condition assessment procedures for the City. It is management's responsibility to monitor the City's
financial condition, and our financial condition assessment was based in part on representations made by
management and review of financial information provided by same.
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any
recommendations to improve financial management. In connection with our audit, we did not have any
such recommendations.
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. Such recommendations are included in Appendix A — Current Year's
Findings and Recommendations to Improve Financial Management.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor
General, Federal and other granting agencies, the Mayor, City Commissioners, and applicable
management, and is not intended to be and should not be used by anyone other than these specified
parties.
Miami, Florida
March 29, 2019, except for the
examination report on the City's compliance with Section 218.415,
Florida Statutes, Local Government Investment Policies, the
report on compliance for each major federal program and state
project and report on internal control over compliance, for which
the date of each report is April 30, 2019
City of Miami, Florida
Appendix A — Current Year Findings and Recommendations to Improve
Financial Management
ML 2018-01 User Access Authorization
Criteria: Information technology (IT) general controls require that user accounts be added, modified and
deleted in a timely manner, in order to reduce the risk of unauthorized and inappropriate access to an
organization's relevant reporting applications or data.
Condition: We noted that IT system user access rights for employees are not being updated in a timely
manner when employees transfer between departments/functions or separate from the City.
Cause: Modifications are not timely performed and are not being tracked in a single system to allow for
proper management of user access changes on an ongoing basis. Currently, email exchanges are
ineffectively being used to authorize and track changes to user access rights.
Effect: Risks include damage, improper modification, and/or loss of data, and unauthorized use and
disclosure of proprietary information.
Recommendation: We recommend that management use a ticket tracking system to manage user
access rights on an ongoing basis. This will allow for the formal documentation and timely execution of
provisioning, modification and de -provisioning of user access rights, when employees transfer between
departments/functions or separate from the City.
Views of Responsible Officials and Planned Corrective Actions: We agree with the recommendation
and will work on improving the process. Starting in May 2019, all access modifications will be tracked in
Remedy Force, our ticket tracking system. We have also initiated discussions to automate the de -
provisioning process so it does not require human intervention. This will be completed by the end of June
2019. Ownership of this initiative has been assigned to the Manager of the Applications Support &
Integration Division.
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City of Miami, Florida
Appendix A — Current Year Findings and Recommendations to Improve
Financial Management
ML 2018-02 Data Backup and Restoration
Criteria: Information technology general controls require that financial data be stored (backup) and
tested/restored on a periodic basis for propriety.
Condition: We noted the following two exceptions in a sample of fourteen backup logs selected for
testing the City's management of stored (backup) data:
• An Oracle backup log selected for testing was not available. Management did not provide
evidence to support that that backup occurred.
• A Windows Active Directory restoration was performed however, there was no documentation to
support the result of the restoration or the individuals in charge of testing and reviewing the
ultimate results of the restoration.
Cause: Supervisory reviews are not being properly performed to ensure that backup logs are available,
restorations are being performed with or by vendors and the results of restorations are being
documented.
Effect: Risks include modification, damage, and/or loss of data. The lack of a strategy for cyclical testing
of the stored (backup) data exposes the City to operational disruption.
Recommendation: We recommend that management establish policies and procedures requiring
supervisory review of backup logs, verification that restorations are being performed with or by vendors
on a periodic basis and that the results of the restorations are properly documented. The documentation
should include the results of the restoration and the individuals in charge of testing and reviewing the
ultimate results.
Views of Responsible Officials and Planned Corrective Actions: The City concurs with the
recommendation and has assigned ownership of this initiative to the Applications Support & Integration
Manager. A process will be implemented to ensure that all the documentation associated with Oracle
patches and enhancements including CAB approvals are saved as part of the Remedy Force ticket.
Development of a new ticket template to record all the activities that take place during Oracle patching
and software enhancements will be developed during the month of April 2019. This process enhancement
will be completed by the end of May 2019.
City of Miami, Florida
Appendix A — Current Year Findings and Recommendations to Improve
Financial Management
ML 2018-03 Change Management
Criteria: General Information Technology (IT) controls should provide reasonable assurance that
program changes, application configuration changes, system changes and maintenance (including
changes to system software and data structures), production processing changes (including new jobs,
schedule changes), and emergency changes are standardized, documented, approved, and subject to
formal change management procedures.
Condition: We noted the following two exceptions in a sample of fourteen system and program changes
selected for testing:
• There was no evidence of approval by the Change Advisory Board for three program changes
selected for testing.
• There was no documentation available to support three program changes selected for testing
were properly tested, validated, and approved before being placed into production.
Cause: Supervisory review is not performed to ensure that the Change Advisory Board agendas contain
all the information required to evidence actions taken on system and program changes. Additionally,
Change Advisory Board actions are not formally documented and stored in a central document repository
to support actions taken on an ongoing basis.
Effect: Unauthorized changes may be moved to the production environment without management's
approval and knowledge.
Recommendation: Management should consider implementing a formal mechanism whereby the
documentation related to program changes is stored and associated with a single ticket, to provide a
single source of information related to the Change Advisory Board's discussions and approvals/actions
and the test results of system and program changes.
Views of Responsible Officials and Planned Corrective Actions: The City concurs with the
recommendation and has assigned ownership of this initiative to the Applications Support & Integration
Manager. A process will be implemented to ensure that all the documentation associated with Oracle
patches and enhancements including CAB approvals are saved as part of the Remedy Force ticket.
Development of a new ticket template to record all the activities that take place during Oracle patching
and software enhancements will be developed during the month of April 2019. This process enhancement
will be completed by the end of May 2019.
City of Miami, Florida
Appendix B — Status of Prior Years' Findings and Recommendations to Improve Financial
Manaciement
Finding No Finding Title
ML 2016-01 Financial Integrity Ordinance
ML 2015-01 Use of Restricted Resources
ML 2015-02 Accounts Receivable
ML 2014-04 User Access Reviews
Current Year Status
Corrected
Corrected
Repeated
Repeated
City of Miami, Florida
Appendix B — Status of Prior Years' Findings and Recommendations to Improve Financial
Management (Continued)
ML 2015-02 —Accounts Receivable
Criteria: Allowances for uncollectible receivables should be based upon historical trends and the periodic
aging of receivables. Additionally, management should assess the collectability of receivables on a
periodic basis and write-off balances not deemed to be collectible at a future date.
Prior Year's Condition: The City's allowance for uncollectible receivables was $35.1 million as of
September 30, 2017. Management should assess the collectability of the allowed receivable balances
and write-off amounts not deemed to be collectible at a future date, after all reasonable collection efforts
have been exhausted.
Current Year's Condition: The City's allowance for uncollectible receivables was $36.6 million as of
September 30, 2018. Management should assess the collectability of the allowed receivable balances
and write-off amounts not deemed to be collectible at a future date, after all reasonable collection efforts
have been exhausted.
Cause: Management has been assessing the collectability of the outstanding receivable balances over
time however, formal action has not been taken to write-off amounts not deemed to be collectible at a
future date.
Effect: Gross receivable balances reported in the financial statements may not be collectible at a future
date.
Recommendation: We recommend that management take formal action to write-off balances for financial
statement reporting purposes, which are not deemed to be collectible at a future date.
Prior Year's Views of Responsible Officials and Planned Corrective Actions: The City concurs with the
recommendation and drafted legislation, via an update to the City's Financial Integrity Principles (FIP)
Ordinance, to provide for write-offs of uncollectible accounts as part of the City's basic financial policies.
The proposed FIP revisions have been presented to the City's Finance Committee and are currently
being sponsored by a Commissioner for approval.
Current Year Views of Responsible Officials and Planned Corrective Actions: The City concurs with the
recommendation. On May 10, 2018, the City Commission adopted Ordinance 13767 which revised the
Financial Integrity Ordinance to include language that the City shall endeavor to maintain formal policies,
which reflect "best practices" in the area of revenue collection, to include write-offs of uncollectible
accounts. The Finance staff is currently working to develop a write-off policy that is aligned with current
accounting standards and current best practices.
I.3
City of Miami, Florida
Appendix B — Status of Prior Years' Findings and Recommendations to Improve Financial
Management (Continued)
ML 2014-04 — User Access Reviews
Criteria: User access rights to an organization's relevant financial reporting applications or data should be
reviewed periodically by management.
Prior Year's Condition: We noted periodic user access reviews are not being performed for the network
(active directory) to validate that employee system access rights are appropriate based on the
employee's roles and responsibilities. Additionally, we noted in fiscal year 2017, management
implemented a process to review Oracle user access rights however, such reviews were not completed
as of the fiscal year ended.
Current Year's Condition: We noted periodic user access reviews are not being performed for the network
(active directory) to validate that employee system access rights are appropriate based on the
employee's roles and responsibilities. Additionally, we noted an Oracle user access rights review was not
completed for the Office of Planning and Office of Management and Budget.
We noted periodic user access reviews are not being performed for the network (active directory) to
validate that employee system access rights are appropriate based on the employee's roles and
responsibilities. Additionally, we noted in fiscal year 2017, management implemented a process to review
Oracle user access rights however, such reviews were not completed as of the fiscal year ended.
Cause: The City does not have established policies and procedures in place requiring the review of user
access rights on a periodic basis.
Effect: Risks include unauthorized use, disclosure of proprietary information, modification, damage or loss
of data.
Recommendation: We recommend that management establish formal policies and procedures to allow for
the proper administration of user access rights on an ongoing basis. Such policies and procedures should
address the proper provisioning, modifying, removing, and periodic review of access rights assigned to
employees. Management should determine as part of the user access review that configured access
rights are appropriate based on the employee's roles and responsibilities. This review should indicate
who performed the review, when the review was performed, and if any access changes are required.
Prior Year's Views of Responsible Officials and Planned Corrective Actions: We have processes in place
to ensure that access to Oracle Financial Data is granted only authorized employees. We have a formal
process in place to determine who can request access to Financial Data. Oracle Responsibilities
associated with data access are only assigned after the requestor's department and Process Owners
approve. We are also generating a Responsibility Matrix Report that is sent to the Directors of
departments that manage core functionality to validate user access. Regarding conducting network
access reviews to control access to financial information, having access to the network or the windows
domain does not automatically grant access to Oracle EBS. There is no integration between the
environments to transparently login to one from the other. A second account from Oracle EBS is required
to access the financial reporting applications. Moreover, the Oracle EBS system is installed on a separate
Linux platform that also requires a different, non -Windows, account to have system level access. We
currently do not have an automated process that would allow us to conduct network user access reviews.
We have requested funding to implement an Identity Management System for FY 18/19.
City of Miami, Florida
Appendix B — Status of Prior Years' Findings and Recommendations to Improve Financial
Management (Continued)
Current Year Views of Responsible Officials and Planned Corrective Actions:
Active Directory User Access Reviews
The City concurs with the recommendation and has assigned ownership of this initiative to the
Information Security Team. We will initiate conversations to address this recommendation during the
month of April 2019 and expect to have a plan by June 30, 2019. However, implementing a policy and a
process to review Active Directory user access for over five thousand employees will require adequate
funding. Funding requirements will be discussed with the Office of Management and Budget (OMB) as we
progress with the elaboration of the plan. A full implementation of this initiative will most likely occur
during fiscal year 2020 but implementation progress will be monitored and recorded monthly.
Oracle Access Reviews
The City concurs with the recommendation and has assigned ownership of this initiative to the Oracle
System Administrator. During the fiscal year subject of this audit, Oracle responsibility matrixes were sent
to all departments including the Office of Planning and OMB. We will write a policy that clearly outlines
the timeline for department directors to respond. Our plan is to have this completed June 30, 2019.
10
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Independent Accountant's Report
The Honorable Mayor, Members of the
City Commission, and City Manager
City of Miami, Florida
We have examined the City of Miami, Florida's (the City) compliance with Section 218.415, Florida
Statutes, Local Government Investment Policies during the fiscal year ended September 30, 2018.
Management is responsible for the City's compliance with those requirements. Our responsibility is to
express an opinion on the City's compliance with the specified requirements based on our examination.
Our examination was conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants. Those standards require that we plan and perform the
examination to obtain reasonable assurance about whether the City complied, in all material respects,
with the specified requirements referenced above. An examination involves performing procedures to
obtain evidence about whether the City complied with the specified requirements. The nature, timing, and
extent of the procedures selected depend on ourjudgment, including an assessment of the risk of
material noncompliance, whether due to fraud or error. We believe that our examination provides a
reasonable basis for our opinion.
Our examination does not provide a legal determination on the City's compliance with specified
requirements.
In our opinion, the City complied, in all material respects, with the aforementioned requirements for the
fiscal year ended September 30, 2018.
This report is intended solely for the information and use of the Florida Auditor General, the Honorable
Mayor, Members of the City Commission, the City Manager, and applicable management, and is not
intended to be and should not be used by anyone other than these specified parties.
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April 30, 2019
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City of Miami, Florida
Single Audit Reports in Accordance with
Uniform Guidance and Chapter 10.550, Rules
of the Florida Auditor General
Fiscal Year Ended September 30, 2018
Table of Contents
Independent Auditor's Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance With
Government Auditing Standards 1 — 2
Independent Auditor's Report on Compliance for Each Major
Federal Program and State Project; Report on Internal Control
Over Compliance; and Report on the Schedule of Expenditures of
Federal Awards and Schedule of State Financial Assistance Required by the
Uniform Guidance and Chapter 10.550, Rules of the Florida Auditor General 3-5
Schedule of Expenditures of Federal Awards
Schedule of State Financial Assistance
10
Notes to Schedule of Expenditures of Federal Awards and Schedule of State Financial
Assistance 11
Schedule of Findings and Questioned Costs
12-13
Summary Schedule of Prior Years' Audit Findings 14
EWEOR-IsI! =RS,"if
Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance With
Government Auditing Standards
Independent Auditor's Report
To the Honorable Mayor
and Members of the City Commission
City of Miami, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the aggregate discretely presented component units, each major fund, and the aggregate
remaining fund information of the City of Miami, Florida (the City), as of and for the year ended
September 30, 2018, and the related notes to the financial statements, which collectively comprise the
City's basic financial statements, and have issued our report thereon dated March 29, 2019. Our report
includes an emphasis of matter paragraph for the adoption of Governmental Accounting Standards
Board Statement 75, Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions. Our report also includes a reference to other auditors who audited the financial statements of
the following component units and funds, as described in our report on the City's financial statements:
Component Units / Funds Classification
• Southeast Overtown Park West Redevelopment Agency nonmajor special revenue fund
• Omni Community Redevelopment Agency nonmajor special revenue fund
• Midtown Community Redevelopment Agency nonmajor special revenue fund
• Virginia Key Beach Park Trust nonmajor special revenue fund
• Liberty City Community Revitalization District Trusts nonmajor special revenue fund
• Firefighters' and Police Officers' Retirement Trust
• General Employees' and Sanitation Employees'
Retirement Trust and Other Managed Trusts
• Miami Sports and Exhibition Authority
• Downtown Development Authority
• Bayfront Park Management Trust
• Coconut Grove Business Improvement District
• Wynwood Business Improvement District
aggregate remaining fund information
aggregate remaining fund information
discretely presented component unit
discretely presented component unit
discretely presented component unit
discretely presented component unit
discretely presented component unit
This report does not include the results of the other auditors' testing of internal control over financial
reporting or compliance and other matters that are reported on separately by those auditors.
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Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of City's internal control. Accordingly, we do not
express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the entity's financial statements will not be prevented, or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity's internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
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March 29, 2019
2
Report on Compliance for Each Major
Federal Program and State Project;
Report on Internal Control Over Compliance; and
Report on Schedule of the Expenditures of
Federal Awards and Schedule of State Financial
Assistance Required by the Uniform Guidance and
Chapter 10.550, Rules of the Florida Auditor General
Independent Auditor's Report
To the Honorable Mayor
and Members of the City Commission
City of Miami, Florida
Report on Compliance for Each Major Federal Program and State Project
We have audited the City of Miami, Florida's (the City) compliance with the types of compliance
requirements described in the OMB Compliance Supplement and the requirements described in the
Florida Department of Financial Services State Projects Compliance Supplement, that could have a direct
and material effect on each of the City's major federal programs and state projects for the year ended
September 30, 2018. The City's major federal programs and state projects are identified in the summary
of auditor's results section of the accompanying schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with federal and state statutes, regulations, and the terms and
conditions of its federal and state awards applicable to its federal programs and state projects.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of the City's major federal programs
and state projects based on our audit of the types of compliance requirements referred to above. We
conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2
U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance) and Chapter 10.550, Rules of the Florida
Auditor General (Chapter 10.550). Those standards, the Uniform Guidance and Chapter 10.550 require
that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the
types of compliance requirements referred to above that could have a direct and material effect on a
major federal program or state project occurred. An audit includes examining, on a test basis, evidence
about the City's compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances.
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We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program and state project. However, our audit does not provide a legal determination of the City's
compliance.
Opinion on Each Major Federal Program and State Project
In our opinion, the City complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on each of its major federal programs and
state projects for the year ended September 30, 2018.
Report on Internal Control Over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In planning and performing our
audit of compliance, we considered the City's internal control over compliance with the types of
requirements that could have a direct and material effect on each major federal program and state project
to determine the auditing procedures that are appropriate in the circumstances for the purpose of
expressing an opinion on compliance for each major federal program and state project, and to test and
report on internal control over compliance in accordance with Uniform Guidance and Chapter 10.550, but
not for the purpose of expressing an opinion on the effectiveness of internal control over compliance.
Accordingly, we do not express an opinion on the effectiveness of the City's internal control over
compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program or state project on a timely basis. A material weakness in internal control over
compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that
there is a reasonable possibility that material noncompliance with a type of compliance requirement of a
federal program or state project will not be prevented, or detected and corrected, on a timely basis. A
significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies,
in internal control over compliance with a type of compliance requirement of a federal program or state
project that is less severe than a material weakness in internal control over compliance, yet important
enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
Uniform Guidance and Chapter 10.550. Accordingly, this report is not suitable for any other purpose.
4
Report on Schedule of Expenditures of Federal Awards and Schedule of State Financial
Assistance Required by the Uniform Guidance and Chapter 10.550, Rules of the Florida Auditor
General
We have audited the financial statements of the City as of and for the year ended September 30, 2018,
and have issued our report thereon dated March 29, 2019, which contained unmodified opinions on those
financial statements, and included a reference to other auditors. Our audit was conducted for the purpose
of forming opinions on the financial statements that collectively comprise the basic financial statements.
The accompanying schedule of expenditures of federal awards and schedule of state financial assistance
are presented for purposes of additional analysis as required by Uniform Guidance and Chapter 10.550,
and is not a required part of the basic financial statements. Such information is the responsibility of
management and was derived from and relates directly to the underlying accounting and other records
used to prepare the basic financial statements. The information has been subjected to the auditing
procedures applied in the audit of the financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used
to prepare the basic financial statements or to the basic financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the schedule of expenditures of federal awards and schedule of state financial
assistance are fairly stated in all material respects in relation to the basic financial statements as a whole.
�.S,q vs .c,cP
Miami, Florida
April 30, 2019, except for the Schedule of Expenditures of Federal Awards
and Schedule of State Financial Assistance for which the date is March 29, 2019
5
City of Miami, Florida
Schedule of Expenditures of Federal Awards
Fiscal Year Ended September 30, 2018
City of Miami, Florida
Schedule of Expenditures of Federal Awards and State Financial Assistance
For the Fiscal Year Ended September 30, 2018
CFDA
Pass -Through Entity Identifying
Passed Through to
Federal Grantor/Pass-through Grantor/Program or Cluster Title
Number
Grant/Contract Number
Number
Subreciplents
Federal Expenditures
U.S Department of Agriculture
Pass -Through Florida Department of Health
Child and Adult Care Food Program
10.558
A-2384
16165FL35ON1099
$ -
$ 65,128
S-576
16165FL35ON1099/16165FL35ON2020
64,789
129,917
Pass -Through Miami -Dade County, Florida
Supplemental Nutrition Assistance Program
10.551
WS-CC-PY'17-13-00
175FL41152520
13,417
Pass -Through Miami -Dade County, Florida
State Administrative Matching Grants for the Supplemental Nutrition Assistance Program
10.561
WS-CC-PY'17-13-00
175FL41152520
-
40,241
WS-SP-PY'17-14-00
175FL41152520
17,654
57,895
Total U.S Department of Agriculture
$
$ 201,229
U.S Department of Housing and Urban Development
Community Development Block Grants/Entitlement Grants Cluster
14.218
B -05 -MC -120013
$ -
$ 87,171
B -06 -MC -120013
-
123
B -07 -MC -120013
-
226,130
B -08 -MC -120013
-
110,422
B -08 -MN -120016
-
5,804
B -09 -MC -120013
-
166,255
B -10 -MC -120013
14,506
393,623
B -11 -MC -120013
-
75,262
B -12 -MC -120013
-
191,021
B -13 -MC -120013
-
92,512
B -14 -MC -120013
-
769,504
B -15 -MC -120013
15,362
419,443
B -16 -MC -120013
122,572
595,295
B -17 -MC -120013
1,454,314
3,302,791
1,606,754
6,435,356
Emergency Solutions Grant Program
14.231
E -17 -MC -120002
421,674
(continued)
0
City of Miami, Florida
Schedule of Expenditures of Federal Awards
Fiscal Year Ended September 30, 2018
CFDA Pass -Through Entity Identifying Passed Through to
Federal Grantor/Pass-through Grantor/Program or Cluster Title Number Grant/Contract Number Number Subrecipients
Pass -Through Miami -Dade County, Florida
Supportive Housing Program 14.235 FL0189L4D001609 596000573 -
FLO189L4DO01710 596000573 -
F1.01901.4DO01609 596000573 -
F1.01901.4DO01710 596000573 -
FL0211L4D001609 596000573 -
FLO211L4DO01710 596000573 -
Home Investment Partnership Program 14.239 M -05 -MC -120211
M -06 -MC -120211
M -07 -MC -120011
M -09 -MC -120011
M -10 -MC -120011
M -12 -MC -120011
M -13 -MC -120011
M -14 -MC -120011
M -15 -MC -120011
M -16 -MC -120011
M -17 -MC -120011
Housing Opportunities for Persons with AIDS 14.241 F-LH-05-FOOS
F-LH-06-F00S
F -LH -08-F005
F -LH -09-F005
F -LH -11-F005
F -LH -12-F005
F -LH -15-F005
F -LH -16-F005
F -LH -174005
2,173
2,173
Federal Expenditures
87,996
192,531
86,653
52,434
152,108
94,852
666,574
39,609
9,413
221,384
44,000
262,740
179,871
57,619
642,706
1,010,822
631,552
753,505
3,853,221
620,758
342,186
172,077
207,500
212,548
22
2,723,991
1,050,142
5,711,392
11,040,616
Lower Income Housing Assistance Program -Section 8 Moderate Project -Based Cluster 14.856 FL145MR0001 - 8,863
FL145MR0001 - 1,819,062
FL145MR002 546,640
2,374,565
Section 8 Housing Choice Vouchers Cluster 14.871 FL145 2,344,358
Total U.S Department of Housing and Urban Development 5 $ 27,136,364
(continued)
7
City of Miami, Florida
Schedule of Expenditures of Federal Awards
Fiscal Year Ended September 30, 2018
CFDA Pass -Through Entity Identifying Passed Through to
Federal Grantor/Pass-through Grantor/Program or Cluster Title Number Grant/Contract Number Number Subrecipients Federal Expenditures
U.S Deoartment of Justice
Pass -Through Office of the Florida Attorney General
Crime Victim Assistance 16.575 VOLA -2016 -City of Miami Police 596000375 $ - $ 69,697
VOCA-2017-City of Miami Police Deoa-00096 596000375 - 12 413
Public Safety Partnership and Community Policing Grants
Edward Byrne Memorial Justice Assistance Grant Program
Pass -Through Florida Department of Law Enforcement
Edward Byrne Memorial Justice Assistance Grant Program
DNA Backlog Reduction Program
Edward Byrne Memorial Competitive Grant Program
Body Worn Camera Policy and Implementation
Equitable Sharing Program
Total U.S Department of Justice
U.S Department of Labor
Pass -Through Miami Dade County, Florida
Unemployment Insurance
WIOA Cluster
Pass -Through Miami Dade County, Florida
WIA/WIOA Adult Program Cluster
Pass -Through Miami Dade County, Florida
WIA/WIOA Dislocated Worker Formula Grants Cluster
Pass -Through Miami Dade County, Florida
WIA/WIOA Rapid Response Cluster
Total WIOA Cluster
Total U.S Department of Labor
U.S. Department of Transportation
Pass -Through Florida Department of Transportation
Highway Planning and Construction Cluster
National Priority Safety Programs
Total U.S Department of Transportation
82,110
16.710
2014ULWX0043
-
35,820
2016ULWX0024
-
730,196
2017ULWX0033
183,961
949,977
16.738
2016 -CD -BX -0055
-
7,858
2016 -DJ -BX -0816
90,160
98,018
16.738
2017-JAGC DADE-649,056
2016-MU-SX0073
-
114
2017-JAGC DADE-749,038
2016-MU-BX0073
1,077
1,191
16.741
2017 -AK -BX -0013
107,114
16.751
2014 -WY -BX -002
39,014
66,226
16.835
2016 -BC -SX -K087
612,862
16.922
not applicable
633,437
S
39,014 $
2,550,935
17.225
WS-CC-PY'17-13-00
UI -29835-17-55-A-12
$
- $
32,335
WS-CC-PY'17-13-00
UI -29835-17-55-A-12
-
6,260
WS-CC-PY'16-13-00
UI.28125.16.60-A-12
9,748
48,343
17.258
WS-CC-PY'17.13-00
AA -28310-16-55-A-12
-
162,423
WS -SP -Py" 17-14-00
AA -28310-16-55-A-12
65,604
228,027
17.278
WS-CC-PY'17-13.00
AA -28310.16.55-A-13
203,452
203,452
17.278
WS-CC-PY'16-13-00
AA -28310-16-55-A-14
-
2,612
WS-CC-PY'17-13-00
AA -28310-16-55-A-14
46,634
49,246
480,725
$
$
529,068
20.205
G0023
Not available
$
$
15,052
20.616
GOF17
-
6,362
GOP50
78,515
84,877
$
$
99,929
8 (continued)
City of Miami, Florida
Schedule of Expenditures of Federal Awards
Fiscal Year Ended September 30, 2018
01
CFDA
Pass -Through Entity Identifying
Passed
Through to
Federal Grantor/Pass-through Grantor/Program or Cluster Title
Number
Grant/Contract Number
Number
Subrecipients
Federal Expenditures
U.S Department of Health and Human Services
Pass -Through Miami Dade County, Florida
Temporary Assistance for Needy Families
93.558
WS-CC-PY'17-13-00
G-17001FLTANF
$
-
$
307,561
WS-SP-PY'17-14-00
G-17001FLTANF
130,203
437,764
Pass -Through Florida Agency for Persons with Disabilities
Medical Assistance Program
93.778
Not Applicable
Not available
309,422
Total U.S Department of Health and Human Services
$
$
747,186
Executive Office of the President
Pass -Through South Florida HIDTA/Monroe County Sheriffs
95.001
G15MI0001A
G15MI0001A
$
-
$
4,043
High Intensity Drug Trafficking Areas Program
G16MI00001A
G16MI0001A
-
57,009
G17MI0001A
G17MI0001A
24,853
Total Executive Office of the President
$
$
85,905
U.S Department of Homeland Security
National Urban Search and Rescue (US&R) Response System
97.025
EMW2015CA00042
$
-
$
55,312
EMW-2016-CA-00019-SO1
-
251,682
EMW2017CA00048
-
917,074
EMW-95-k-4718
1,367,665
2,591,733
Assistance to Firefighters Grant
97.044
2017 -F6 -C111 -P4330000 -4101-D
528,492
Pass Through State of Florida Division of Emergency Management
Homeland Security Grant Program
97.067
16 -DS -U7-11-23-02-368
EMW-2015-SS-00083-SOI
216,506
336,507
17 -DS -V4-11-23-02-340
EMW-2016-55-00092-SO1
-
20,711
17 -OS -V9-11-23-02-346
EMW-2016-SS-00092-SO1
2,907,940
4,099,866
18 -DS -X3-11-23-02-376
EMW-2017-SS-00061
-
420,822
18-DS-Xl-11-23-02-338
EMW-2017-SS-00061
1,909
3,124,446
4,879,815
Pass -Through Florida Emergency Management Agency
Disaster Assistance Projects
97.036
4337DR-FL(086-45000-00)
-
6,647,461
4337DR-FL(086-45000-00)
4,142
6,651,603
Total U.S Department of Homeland Security
$
3,124,446
$
14,651,643
Total Expenditures for Federal Awards
$
4,772,387
$
46,002,259
See Notes to Schedule of Expenditures of Federal Awards and Schedule of State Financial Assistance
01
City of Miami, Florida
Schedule of State Financial Assistance
Fiscal Year Ended September 30, 2018
State Grantor/Pass-through Grantor/Program or Cluster Title CSFA Number Grant/Contract Number State Expenditures
Department of Environmental Protection
Wastewater Treatment Facility Construction 37.077 SW 132000 $ 2,346,680
Total Department of Environmental Protection
Florida Housing Finance Corporation
State Housing Initiatives Partnership (SHIP) Program 40.901 Not applicable $ 30,488
10
SHIP FY2016-2017
718,459
SHIP FY2017-2018
338,675
Total Florida Housing Finance Corporation
$
1,087,622
Florida Department of State
Cultural Facilities Grant Program
45.014
18.9.200.095
$
38,903
Acquisition, Restoration of Historic Properties
45.032
MP511
1,000,000
18.h.sm.300.070
7,350
1,007,350
Total Florida Department of State
$
1,046,253
Department of Transportation
Florida Highway Beautification Grant Program Keep Florida Beautiful
55.003
G0545
$
16,000
Public Transit Service Development Program
55.012
GE075
205,363
Total Department of Transportation
$
221,363
Department of Health
Pass -Through Miami -Dade County, Florida
County Grant Awards
64.005
EMS County Grant #00013
$
25,834
Total Department of Health
$
25,834
Florida Department of Law Enforcement
Crime Reporting and Analytics
71.021
G1612
$
655,903
Total Department of Law Enforcement
$
655,903
Total Expenditures of State Financial Assistance
$
5,383,655
See Notes to Schedule of Expenditures of Federal Awards and Schedule of State Financial
Assistance
10
City of Miami, Florida
Notes to Schedule of Expenditures of Federal Awards and Schedule of State Financial Assistance
Fiscal Year Ended September 30, 2018
Note 1. General and Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards and Schedule of State Financial
Assistance (the Schedules) presents the expenditure activities of all federal programs and state awards of
the City of Miami, Florida (the City) for the year ended September 30, 2018. All expenditures related to
federal awards and state financial assistance received directly from federal and state agencies, as well as
federal and state awards passed through other government agencies are included in the accompanying
Schedules. The information in the Schedules is presented in accordance with the requirements of the
Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards (Uniform Guidance) and Chapter 10.550, Rules of the
Florida Auditor General. Because the Schedules present only a selected portion of the operations of the
City, it is not intended to and does not present the financial position, changes in fund balance/net position
or cash flows, where applicable, of the City. The City's reporting entity is defined in Note 1 of the City's
basic financial statements.
Note 2. Basis of Accounting
The accompanying Schedules are presented using the modified accrual basis of accounting since grants
are accounted for in the governmental fund types of the City. Such expenditures are reported following
the cost principles contained in the Uniform Guidance and the Rules of the Department of Financial
Services of the State of Florida, wherein certain types of expenditures are not allowable or are limited as
to reimbursement.
Note 3. Indirect Cost Recovery
The City did not recover its indirect costs using the 10% de minimis indirect cost rate provided under
Section 200.414 of the Uniform Guidance.
11
City of Miami, Florida
Schedule of Findings and Questioned Costs
Fiscal Year Ended September 30, 2018
I — Summary of Independent Auditor's Results
Financial Statements
Type of auditor's report issued: Unmodified
Internal control over financial reporting:
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified? Yes X None Reported
Noncompliance material to financial statements noted? Yes X No
Federal Awards
Internal control over major programs
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified? Yes X None Reported
Type of auditor's report issued on compliance for
major programs: Unmodified
Any audit findings disclosed that are required
to be reported in accordance with Section
2 CFR 200.516(a)? Yes X No
Identification of major programs:
The programs tested as major were as follows:
CFDA Number(s) Name of Federal Program or Cluster
97.067 Homeland Security Grant Program
97.036 Disaster Assistance Projects
Dollar threshold used to distinguish between type
A and type B programs: $ 1,380,068
Auditee qualified as low-risk auditee? X Yes No
(Continued)
12
City of Miami, Florida
Schedule of Findings and Questioned Costs (Continued)
Fiscal Year Ended September 30, 2018
Section I — Summary of Auditor's Results (Continued)
State Financial Assistance
Internal control over major projects:
Material weakness(es) identified?
Significant deficiency(ies) identified?
Type of auditor's report issued on compliance for
major projects:
Any audit findings disclosed that are required
to be reported in accordance with Chapter 10.550,
Rules of the Florida Auditor General?
Identification of major projects:
The projects tested as major were as follows:
CSFA Number(s)
37.077
40.901
45.032
71.021
Dollar threshold used to distinguish between type
A and type B projects:
Section II — Financial Statements Findings
No matters to report.
Yes X No
Yes X None Reported
Unmodified
Yes X No
Name of State Project
Wastewater Treatment Facility Construction
State Housing Initiatives Partnership (SHIP) Program
Acquisition, Restoration of Historic Properties
Crime Reporting and Analytics
$300,000
Section III — Federal Awards Findings and Questioned Costs
No matters to report.
Section IV — State Financial Assistance Findings and Questioned Costs
No matters to report.
13
City of Miami, Florida
Summary Schedule of Prior Years' Audit Findings
Fiscal Year Ended September 30, 2018
Finding No. Finding Title Current Year Status
State Financial Assistance and Questioned Costs
Internal Control over Compliance Findings
IC 2017-01 Reporting — CFDA #40.012 Corrected
Compliance Findings
CF 2017-01 Reporting — CFDA #40.012 Corrected
14
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•
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
*KIN CORP DRATED'
� 18 96 �
FISCALR ENDED SEPTEMBER 30, 2018
Prepared By:
The Finance Department
Erica T. Paschal, CPA
Director
Munirah Daniel, CPA
Assistant Director
Eugene Codner
Controller
Noel G. Ramos
Finance Manager
Page left intentionally blank
C � nJ19 Florida
Comprehensive Annind Financial Report For
the Fiscal Year Ended September 30, 2018
Table of Contents
INTRODUCTORY SECTION
Principal City Officials...............................................................
City Organizational Chart...........................................................
Letter of Transmittal...................................................................
GFOA Certificate of Achievement .............................................
FINANCIAL SECTION
.3
.4
.5
18
IndependentAuditor's Report .......................................................................................................................... 21
Management's Discussion and Analysis..................................................................................................... 25
Basic Financial Statements:
Government -wide Financial Statements:
Statementof Net Position.............................................................................................................. 38
Statementof Activities.................................................................................................................. 39
Fund Financial Statements:
Governmental Funds:
BalanceSheet.................................................................................................................................
40
Reconciliation of the Balance Sheet - Governmental Funds to Government -wide Statement
ofNet Position...............................................................................................................................
41
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ....
42
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds to the Statement of Activities......................................................................
43
Fiduciary Funds:
Statement of Fiduciary Net Position..............................................................................................
44
Statement of Changes in Fiduciary Net Position............................................................................45
Discretely Presented Component Units:
Statementof Net Position..............................................................................................................
46
Statementof Activities..................................................................................................................
48
Notes to the Financial Statements................................................................................................................50
i
Required Supplementary Information:
Budgetary Comparison Schedules of Revenues, Expenditures and Changes in Fund Balances:
GeneralFund................................................................................................................................ 145
Notes to Required Supplementary Information........................................................................... 146
Pension Schedules:
Schedule of Changes in the Total OPEB Liability and Related Ratios........................................147
Schedule of Changes in the Net Pension Liability and Related Ratios........................................148
Schedule of Employer Contributions...........................................................................................154
Schedule of Investment Returns..................................................................................................159
Combining and Individual Fund Financial Statements and Schedules:
Nomnajor Governmental Funds:
CombiningBalance Sheet.............................................................................................................165
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ......................172
Budgetary Comparison Schedules:
Special Revenue Funds:
OMNI Community Redevelopment Agency (OMNI) Fund .........................................................
179
Midtown Community Redevelopment Agency (Midtown) Fund .................................................
180
Southeast Overtown Park West Community Redevelopment Agency (SEOPW) Fund...............181
Homeless Program Fund...............................................................................................................182
Community Development Fund....................................................................................................183
Choice Housing Vouchers (Section 8) Fund.................................................................................184
State Housing Initiatives Program (SHIP) Fund...........................................................................185
ConventionCenter Fund...............................................................................................................
186
Economic Development & Planning Services Fund.....................................................................
187
NetOffices Fund...........................................................................................................................188
Parks and Recreations Fund..........................................................................................................189
PoliceServices Fund.....................................................................................................................190
Law Enforcement Trust Fund.......................................................................................................
191
PublicWorks Services Fund.........................................................................................................192
CityClerk Services Fund..............................................................................................................193
Fire Rescue Special Revenue Fund..............................................................................................
194
General Special Revenue Fund.....................................................................................................195
Department Improvement Initiatives Fund...................................................................................
196
Transportation& Transit Fund......................................................................................................197
Miami Ballpark Parking Facilities Fund.......................................................................................198
Liberty City Revitalization Trust..................................................................................................199
VirginiaKey Beach Trust.............................................................................................................
200
Solid Waste Recycling Trust.........................................................................................................201
Bayfront ParkLand Acquisition TrustFund....................................................................................
202
Debt Service Funds:
General Obligation Bonds Fund....................................................................................................203
Special Obligation Bonds Funds...................................................................................................204
IF
CRA Other Special Obligation Bonds Fund.................................................................................206
Fiduciary Funds:
Combining Statement of Fiduciary Net Position.......................................................................... 207
Combining Statement of Changes in Fiduciary Net Position........................................................ 208
STATISTICAL SECTION
Financial Trends:
NetPosition by Component....................................................................................................
Changesin Net Position................................................................................................................
211
Governmental Activities Tax Revenues by Source.......................................................................212
Fund Balances - Governmental Funds...........................................................................................213
Changes in Fund Balances - Governmental Funds........................................................................214
Revenue Capacity:
General Government Tax Revenues by Source.............................................................................216
Net Assessed Value and Estimated Actual Value of Taxable Property .........................................
217
Property Tax Rates — Direct and Overlapping Governnents........................................................
218
Principal Property Taxpayers........................................................................................................219
Property Tax Levies and Collections.............................................................................................
220
Debt Capacity:
Ratios of Outstanding Debt by Type.............................................................................................
221
Ratios of General Bonded Debt Outstanding................................................................................
222
Direct and Overlapping Governmental Activities Debt.................................................................223
Legal Debt Margin Information....................................................................................................
224
Pledged Revenue Coverage...........................................................................................................
225
Demographics and Economic Information:
Demographics and Economic Statistics.........................................................................................226
PrincipalEmployers......................................................................................................................
227
Operating Information:
Full -Time Equivalent City Government Employees by Function.................................................228
Operating Indicators by Function..................................................................................................
229
Capital Assets Statistics by Function/Program..............................................................................
230
ui
Page left intentionally blank
OF
i-.
��iscoer osstEo �y
iB 96
VIA
CITY OF MIAMI, FLORIDA
FRANCIS X.
SUAREZ
Mayor
WIFREDO
"WILLY"
GORT
Vice -Chairman
MANOLO
REYES
Commissioner
EMILIO T.
GONZALEZ,
Ph.D.
City Manager
KEN
RUSSELL `
Chairman
-
JOE
CAROLLO
Commissioner
KEON
HARDEMON
Commissioner
VICTORIA .
MENDEZ
City Attorney
Y
Coconut Grove BID
Fire Fighters' and Police
Civil Service
Code Compliance
— Finance
Budding
Agenda
Development
General Employees' and
Coordination
Human Services
General Services
Capital Improvements
Communications
Retirement Trust
Administration
Innovation and
Technology
Grants Administration
Parks and Recreation
Equal Opportunity
Midtown CRA
and Diversity
Miami Parking
Wynwood BID
Programs
Neighborhood
Housing and Community I
Planning
Enhancement Team
Development
Virginia Key Beach
Park West CRA
Park Trust
Fire -Rescue
Resilience and
Real Estate and Asset
Management and Budget
Public Works
Management
i
Human Resources
ProcurementResilience
and
Solid Waste
Sustainability
police
�— Risk Management
.Zoning
Coconut Grove BID
Fire Fighters' and Police
Civil Service
Officers' Retirement Trust
Bayfront Park
Management Trust
Downtown
Development
General Employees' and
Authority
Sanitation Employees'
Retirement Trust
Civilian
Investigative Panel
Liberty City Trust
Midtown CRA
Miami Parking
Wynwood BID
Authority
Omni CRA
Southeast Overtown
Virginia Key Beach
Park West CRA
Park Trust
4
March 29, 2019
To the Honorable Mayor, Members of the Commission, and Citizens of the City of Miami, Florida:
We are pleased to present the City of Miami, Florida's ("the City") Comprehensive Annual Financial
Report ("CAFR') as of and for the fiscal year ended September 30, 2018. The financial statements
were prepared in accordance with accounting principles generally accepted in the United States of
America (GAAP) as promulgated by the Governmental Accounting Standards Board (GASB).
Management assumes full responsibility for the completeness and reliability of the information
contained in this report, based upon a comprehensive framework of internal control that it has
established for this purpose. Because the cost of internal control should not exceed anticipated
benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial
statements are free of any material misstatements.
RSM US LLP, Certified Public Accountants, have issued an unmodified ("clean") opinion on the
City's basic financial statements as of and for the fiscal year ended September 30, 2018. 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 at http://www.miamigov.com/fmance.
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 122 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 481,333
residents according to the Bureau of Economic and Business Research, University of Florida, 58.0
percent of them foreign born. In physical size, the City is not large, encompassing only 35.87 square
miles. In population, the City is the largest of the 34 municipalities that make up Miami -Dade
County.
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 ("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.
5
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 30' preceding the beginning of the fiscal year on October V
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.
Local Economic Condition and Outlook
With one of the tallest skylines in the United States, the City of Miami is the heart of South Florida
and is a global leader in terms of multicultural growth and business development. It is the most
populous city in the Miami metropolitan area and is ranked 9' in the U.S. for business activity,
human capital, information exchanges, cultural experience and political engagement. With the
tropical climate and its close vicinity to PortMiami and Miami International Airport, tourism is a
major component of the City's economy. Furthermore, Miami is home to one of the largest
concentrations of international banks, with majority of the banks being in the Miami Brickell area.
Local unemployment continues a steady decline from the previous year with Miami reporting a 3.3
percent unemployment rate as of September 2018, which is a decrease from 4.6 percent reported a
year ago. A good business climate has been created for the South Florida economy, encouraging
growth in construction, motion pictures, financial services, and tourism. With growth in these sectors
of the South Florida economy, employment should strengthen, as all indicators point towards steady
improvement in the local economy.
The City's housing prices continued its upward trend in 2018. The median sales price for single-
family homes in Miami increased 7.5 percent in September 2018, to $360,000. Condominiums
median sales price increased 1.3 percent to $237,000 from $234,500 in September 2018. Overall, the
number of single-family home sales in Miami -Dade County increased 43 percent compared with
September 2017 and condo sales also increased 29.5 percent year -over year, according to a monthly
report released by the Miami Association of Realtors. Miami has experienced nearly seven
consecutive years of price appreciation. Low mortgage rates continue to make purchasing a home
more affordable.
Moody's Investors Service upgraded the City's general obligation limited tax rating from Al to Aa2
in March 2018 due to its strong financial position. Moody's noted that the outlook reflects the
likelihood that the City's credit profile will remain stable over the next several years, because of tax
base growth, satisfactory reserve and cash balances which will keep pace with budget growth and the
maintenance of a manageable debt burden despite plans for additional borrowing.
The tax base growth is driven by large projects including the Miami Worldcenter, which recently
opened its first tower to welcome new residents. The Miami Worldcenter project located just north of
downtown Miami is a 27 -acre mixed-use development covering 10 blocks. The center will include
up to 450,000 square feet of retail, 2,000 residential units, 1,700 hotel rooms, 500,000 square feet of
exposition space and 100,000 square feet of parks and public spaces. The project is within walking
distance of All Aboard Florida's Central Station, a Brightline train that transports riders from Fort
Lauderdale to Miami in 28 minutes; which will also spur additional development in the City.
Brightline is part of the newly built 11 -acre mix -use MiamiCentral development. It is in the heart of
Downtown Miami. MiamiCentral spans over six downtown City blocks and features retail shops,
rental residences and a transit hub providing both local and multi -city transit options. MiamiCentral
offers a way to connect with Miami's most popular transportation systems. With Metrorail,
Metromover, Tri -Rail and Brightline all converging in the heart of Downtown Miami, locals and
visitors will experience a variety of transit options. Within the Miami Central station complex, All
Aboard Florida's Brightline passenger train will connect Orlando to downtown Miami.
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.
Revenues and Transfers In
Expenditures and Transfers Out
Net Change in Fund Balance
Beginning Fund Balance
Ending Fund Balance
Summary of General Fund Financial Results
by fiscal year
2018
745,204,594
717,884,461
27,320,133
2017
$ 706,823,792
678,201,723
28,622,069
160,143,418 131,521,349
$ 187,463,551 $ 160,143,418
2016
2015
$ 643,541,725 $
604,639,526
659,425,088
569,657,401
-15,883,363
34,982,125
147,404, 712
112,422,587
$ 131,521,349 $
147,404,712
Employment &Wealth Demographics
The following information was reported by the Bureau of Labor Statistics and the United States
Census Bureau. The table provides Miami demographics compared to the State of Florida and the
United States.
8
United
Miami
Florida
States
Unemployment Rate
3.3%
3.4%
3.8%
Median Household Income
$ 33,999
$ 50,883
$ 57,652
Persons Below Poverty Level
25.8%
14.0%
12.3%
High School Graduate or Higher
75.6%
87.6%
87.3%
Bachelor's Degree or Higher
26.3%
28.5%
30.9%
8
Tourism
Miami is a major tourism hub and ranks second in the nation, after New York City, for international
visitors. The City holds major annual events that attract visitors from across the country and world
These annual events include the Miami Open, Miami Marathon, Art Basel, Miami International Boat
Show, Calle Ocho Festival, Bayfront Park New Year's Eve Celebration, and the Ultra Music
Festival.
In 2020, Miami -Dade County will host the Super Bowl and the event is expected to have a profound
effect on the local economy pouring in money into restaurants, hotels, transportation and local
vendors.
Miami International Airport
The Miami International Airport ("MIA") is operated by the Miami -Dade Aviation Department and
is property of the Miami -Dade County government. MIA reported a total of 44.9 million passengers
for fiscal year 2018, representing a 2.7% increase from the 43.7 million passengers reported in fiscal
year 2017. MIA remains the premier international gateway to Florida welcoming 60 percent of all
international visitors to Florida. In addition, MIA offers more flights to Latin America and the
Caribbean than any other U.S airport and serves as the countries number one airport for international
freight, transporting a total of 2.3 million tons in fiscal year 2018.
PortMiami
PortMiami, ("the Port") known as the "Cruise Capital of The World," is operated by the Seaport
Department of Miami -Dade County. The Port continues to be the world's busiest cruise port and
serves as a hub for Caribbean and Latin American commerce. The Port is among America's busiest
ports and recognized as a global gateway. The Port is important to Miami Dade County and
surrounding areas, contributing more than $43 billion in economic activity and generating 334,500
direct, indirect and induced jobs.
The Port includes seven cruise terminals that have been designed to quickly move passengers from
land to sea. The Port is the closest U.S. East Coast Deepwater container port to the Panama Canal,
providing shippers fast access to the entire U.S. market. For the 2018 calendar year, the Port
reported 5.6 million passengers and 1.0 million of twenty -foot equivalent units of containerized
cargo (TEUs) activity.
Long -Tern: Financial Planning and Major Initiatives
To stabilize the financial management of the City's resources and focus on the long-term
sustainability, while addressing immediate issues and concerns raised by the changing economic
climate and drivers within the community, challenging but necessary decisions were required to be
made.
Financing
During FY2018, the City successfully partially refunded the $59.3 million Special Obligation Bond,
Series 2011A. The City also partially refunded the $16.6 million Taxable Special Obligation, Special
Obligation Bond Series 2010B and $7.2 million Taxable Pension Special Obligation Bond, Series
2009. In addition, the City obtained a $11.3 million Lease from Santander Bank, N.A. to replace
police fleet vehicles, $373.9 thousand lease from Dell Financial to upgrade technology equipment,
and, $2.3 million loan from the State of Florida for the Wagner Creek Seybold Canal Project. See
Note 8 Long -Term Debt.
Forthcoming, the City of Miami voters approved the $400 million general obligation Miami Forever
Bond in November 2017. The Bond will fund a series of projects that will transform the future of
Miami in five key categories: Sea -Level Rise and Flood Prevention ($192M), Roadway
Improvements ($23M), Parks and Cultural Facilities ($78M), Public Safety ($7M) and Affordable
Housing ($IOOM). In December 2018, The City Commission approved a proposed list of projects for
the first tranche in the total maximum principal amount of $58.6 million.
Maior Initiatives
Miami is a modern and diverse city that is a global leader in technology, innovation and resiliency.
The City of Miami is committed to elevating the quality of life of its residents by improving public
safety, housing, mobility, diverse shared spaces that foster community, and efficient and transparent
government. To achieve this mission, the City of Miami 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:
Public Safety
The ShotSpotter gunfire detection system, which utilizes sensors across deployment areas to identify
outdoor firearms discharge was approved by City Commission to expand an additional 10 miles
since first installed in 2014. The technology is currently installed in Liberty City, Little Haiti,
Overtown and Park West. The expansion would cover Coconut Grove, Little Havana, Allapattah,
Model City, Upper Eastside and Downtown. Since its inception, it has been reported that the City's
homicide rate has decreased by over 30 percent due to the implementation of the ShotSpotter
technology.
Housing
As noted earlier, in November 2017, the Miami voters approved $400 million general obligation
bond to build a stronger, more resilient future for Miami. $100 million of the bonds is allocated to
affordable housing programs. $15 million was recently approved in the first tranche to include
funding for the construction and permanent financing for the development of MLK Residences and
Liberty Renaissance. The affordable housing program types include:
Affordable Workforce New Rental Strategy which will provide construction and permanent
financing to assist with development of affordable multifamily rental projects to Workforce
development income levels;
10
• Homeownership Preservation Strategy will provide rehabilitation assistance to the City
homeowners, with repairs necessary in bringing the home to decent, safe and sanitary
conditions;
• City Acquisition of Land will provide funding for the City to acquire buildable vacant parcels
of land suitable for mixed use/mixed income affordable rental or homeownership
developments;
• Affordable Homeownership Strategy will provide construction and permanent finance to
assist with development of affordable single-family units, townhomes and condominiums to
eligible individuals and families;
• Affordable Rental Housing Preservation Strategy will provide construction and permanent
financing to assist with the rehabilitation/preservation of existing affordable multifamily
rental projects; and
• Affordable New Construction Rental Strategy will provide construction and permanent
financing to assist with the development of affordable multifamily rental projects containing
units affordable to Extremely Low Income, Very Low Income, Low Income and Workforce
Development income level individuals and families.
Mobili
As planned, the Underline project broke ground in the Fall 2018. The project combines green public
spaces with paths that connect to transit stations, fully separated from the adjacent street. The
Underline will transform the land below Miami's Metrorail into a 10 -mile linear park, urban trail and
living art destination. The City of Miami has pledged $50 million of impact fees collected in the
respective districts for the park, which will benefit residents living both in the City and the
surrounding areas.
In May 2018, the City Commission approved to expand the free Miami Trolley services to add a new
Flagami route. By adding a Flagami Route, the overall efficiency of travel for all residents, tourists,
and commuters within the Flagami area will increase the overall efficiency of travel. The route
operates six (6) days a week at an estimated cost of $1.2 million a year.
Efficient and Transparent Government
The City officially launched its Safe City Initiative in March 2018. The goal of this collaborative
effort is to create green, safe and clean neighborhoods. Unsafe and abandoned structures have been
demolished or cleared, ridding these locations of illicit activities and allowing for housing
redevelopment in the respective areas. Through task force inspections, landlords are being held
accountable to ensure safe and sanitary living conditions within the City's residential areas.
11
Capital Improvement Plan
The City's six-year Capital Improvement Plan has earmarked funding estimated at approximately
$622.3 million for 876 projects, 548 active and 328 future projects.
City Funds represent the largest share of funding in the Capital Plan, accounting for 65.9 percent of
overall Plan funds. City Bonds represent the second largest funding source, accounting for 22.7
percent of the Plan's funding. Sources derived from State Grants represent 4.4 percent of the Plan.
The remaining 7.0 percent of funding are from Federal, Local Units and Private Donations sources.
The tables below summarize the revenues by type and the expenditures by fund within the Capital
Improvement Plan:
Capital Improvement Program
Revenue by Type
Description
Amount
Percent
City Funds
$ 410,304,000
65.9%
City Bonds
140,992,000
22.7%
Private Donations/Other
4,802,000
0.8%
State Grants
27,207,000
4.4%
Federal Grants
4,365,000
0.7%
Miami -Dade County Grants
25,302,000
4.1%
Other Local Units
9,296,000
1.5%
Total
$ 622,268,000
1.7%
Capital Improvement Program
Expenditures by Fund
Description
Amount
Percent
Streets and Sidewalks
$ 133,568,000
21.5%
Disaster Recovery
1,567,000
0.3%
General Government
60,988,000
9.8%
Mass Transit
1,219,000
0.2%
Parks and Recreation
201,786,000
32.4%
Public Facilities
97,614,000
15.7%
Public Safety
44,064,000
7.1%
Sanitary Sewers
10,591,000
1.7%
Solid Waste
3,049,000
0.5%
Storm Sewers
67,822,000
10.9%
Total
622,268,000
12
Relevant Financial Policies
The City has adopted a comprehensive set of financial policies. The policies are described below.
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 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
13
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 Policv
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.
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
14
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 following types
of securities: (a) The Florida Local Government Surplus Funds Trust Fund, (b) United States
Government Securities, (c) United States Government Agencies, (d) Federal Instrumentalities, (e)
Interest Bearing Time Deposit or Savings Accounts, (f) Repurchase Agreements, (g) Commercial
Paper, (h) Corporate Notes, (i)Municipal Securities, 0) Registered Investment Companies (Money
Market Funds), (k) Intergovernmental Investment Pool, (1) Agency Mortgage -Backed Securities, (m)
Asset -Backed Securities, (n) Supranationals and (o) Foreign Sovereign Governments.
For the year ending September 30, 2018, 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 Inte-arity 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 in (1) above) to fund unexpected mid -year revenue shortfalls
or for an emergency such as a natural or man-made disaster, which threatens the health, safety and
welfare of the City's residents, businesses or visitors; and (3) the "designated" reserve equal to ten
percent of the prior three years average of general revenues (excluding transfers) to fund long-term
liabilities and commitments of the City, such as compensated absences, self-insurance plan deficits
and anticipated adjustments in pension plan payments resulting from market losses. "Designated"
fund balance shall be classified as either restricted, committed, or assigned based on standards and
guidance established by the Governmental Accounting Standards Board (GASB).
15
For the 2018 fiscal year, the City's General Fund reserves increased by approximately $27.5 million
and had an ending fund balance of approximately $187.5 million. Of the ending fund balance,
approximately $82.9 million is restricted, approximately $2.1 million is non -spendable,
approximately $38.0 is assigned, which includes the $5.0 million Required Contingency Reserve,
and approximately $64.4 million is unassigned. The City is in accordance with the Financial Integrity
Ordinance which requires a minimum General Fund balance equal to 20 percent (10% Designated
and 10% Unassigned) of the prior three years average of general revenues (excluding transfers),
which equates to $64.4 million for both "Designated" and "Unassigned" for the 2018 fiscal year.
The City's five-year forecast projects that revenues will not grow as fast as anticipated expenditures.
Revenues are forecasted to grow by a total of 16.6 percent, while expenditures are projected to grow
by a total of 17.4 percent. However, in FY 2022-23 the City is currently not projected to meet the
FIP requirement due to current Collective Bargaining Agreements. The ultimate course will be
determined by the City Commission in its review, consideration, and ultimate approval of future
budgets submitted by the Administration.
Failure to comply with the Financial Integrity Ordinance is not an event of default under the
Ordinance. The City will strive to come into compliance with the Ordinance. However, there can be
no assurance that the General Fund Reserves will reach or be maintained at the level required by the
Financial Integrity Ordinance. The City continues to recommend balanced budgets, including
recommendations to restore General Fund Reserves to required levels as quickly and as reasonably
as possible.
Risk Manazement — Selflnsurance Projzram
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 of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Miami, Florida for its
Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2017. 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.
16
In order to be awarded a Certificate of Achievement, the government had to publish an easily
readable and efficiently organized CAFR that satisfied both generally accepted accounting principles
and applicable program requirements. A Certificate of Achievement for Excellence in Financial
Reporting is valid for a period of one year only. We believe that our current CAFR continues to meet
the Certificate of Achievement for Excellence in Financial Reporting Program's requirements, and
we are submitting it to the GFOA to determine its eligibility for another certificate.
The City of Miami also received the GFOA's Distinguished Budget Presentation Award for its
annual budget document for the fiscal year beginning October 1, 2017. 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 CAFR could not have been accomplished without hard work, commitment and
personal sacrifice.
We wish to thank all government departments for their assistance in providing the data necessary to
prepare this report. The guidance and cooperation of the Mayor and City Commission in planning
and conducting the financial affairs of the City is greatly appreciated. Lastly, we wish to express our
appreciation to the City's General Services Administration for the reproduction of this report.
Respectfully submitted,
Emilio T. Gonzalez
City Manager
Sandra Bridgeman, CPA
Assistant City Manager/CFO
Erica T. Paschal, CPA
Finance Director
17
0 1
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Miami
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2017
P .2
Executive Director/CEO
18
19
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20
I
Independent Auditor's Report
The Honorable Mayor and Members of the City Commission
City of Miami, Florida
�:i;l Ll�
RSPAUSLLP
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the aggregate
discretely presented component units, each major fund, and the aggregate remaining fund information of
the City of Miami, Florida (the City), as of and for the year ended September 30, 2018, and the related
notes to the financial statements, which collectively comprise the City's basic financial statements as
listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not
audit the financial statements of the following component units and funds:
Component Units / Funds Classification
• Southeast Overtown Park West Redevelopment Agency
• Omni Redevelopment Agency
• Midtown Community Redevelopment Agency
• Virginia Key Beach Park Trust
• Liberty City Community Revitalization District Trusts
• Firefighters' and Police Officers' Retirement Trust
• General Employees' and Sanitation Employees' Retirement Trust
and Other Managed Trusts
• Miami Sports and Exhibition Authority
• Downtown Development Authority
• Bayfront Park
• Coconut Grove Business Improvement District
• Wynwood Business Improvement District
THE PMYER OF BEING UNDERSTOOD
AUDIT I TAXI C NSULTIN
nonmajor special revenue fund
nonmajor special revenue fund
nonmajor special revenue fund
nonmajor special revenue fund
nonmajor special revenue fund
aggregate remaining fund information
aggregate remaining fund information
discretely presented component unit
discretely presented component unit
discretely presented component unit
discretely presented component unit
discretely presented component unit
21
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WAMMUCOA 21
The component units and funds represent the percentage of assets/deferred outflow of resources and
revenue/additions, where applicable, of the respective opinion units listed below:
Percentage of,
Total Assets/Deferred Total
Reporting Classification Outflow of Resources Revenues/Additions
• Governmental Activities 5% 5%
• Discretely Presented Component Units 21% 34%
• Aggregate Remaining Fund Information 88% 75%
Those statements were audited by other auditors whose reports have been furnished to us, and our
opinion, insofar as it relates to the amounts included for the funds and component units referred to above,
are based solely on the reports of the other auditors. We conducted our audit in accordance with auditing
standards generally accepted in the United States of America, and the standards applicable to financial
audits contained in Government Auditing Standards issued by the Comptroller General of the United
States. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, based on our audit and the reports of other auditors, the financial statements referred to
above present fairly, in all material respects, the respective financial position of the governmental
activities, the aggregate discretely presented component units, each major fund, and the aggregate
remaining fund information of the City of Miami, Florida, as of September 30, 2018, 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.
Emphasis of Matter
As discussed in Note 1 to the accompanying financial statements, the City adopted the recognition and
disclosure requirements of Governmental Accounting Standards Board Statement No. 75, Accounting
and Financial Reporting for Postemployment Benefits Other Than Pensions effective October 1, 2017.
The net position of the governmental activities as of October 1, 2017 has been restated. Our opinion is
not modified with respect to this matter.
As discussed in Note 15 to the accompanying financial statements, the net position of the aggregate
remaining fund information for the employee retirement funds as of October 1, 2017 has been restated.
Our opinion is not modified with respect to this matter.
22
22
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, budgetary comparison schedules, and other postemployment benefits and
pension related schedules as listed in the table of contents be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is required
by the Governmental Accounting Standards Board who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or historical
context. We and other auditors have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of America,
which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The introductory section, the combining and individual
fund financial statements and schedules, and the statistical section, are presented for purposes of
additional analysis and are not a required part of the basic financial statements.
The combining and individual fund financial statements and schedules are the responsibility of
management and was derived from and relates directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United
States of America by us and other auditors. In our opinion, based on our audit, the procedures performed
as described above, and the reports of the other auditors, the combining and individual fund statements
and schedules is fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements, and accordingly, we do not express an opinion or provide any
assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
March 29, 2019, under separate cover, 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 the City's internal control over financial reporting and compliance.
�>-s,q vs ,
Miami, Florida
March 29, 2019
23
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24
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, 2018. We encourage readers to consider the information presented here in conjunction with
additional information that we have furnished in our letter of transmittal, which can be found on pages 5 —
17 of this report.
Financial Highlights
• The liabilities and deferred inflows of resources of the City exceeded its assets and deferred outflows of
resources at the close of the 2018 fiscal year by approximately $629.47 million (net position deficit).
• The City total net position increased in fiscal year 2018 by $49.33 million compared to a decrease in net
position of $171.25 million during fiscal year 2017. Total revenues exceeded total expenses in the
current year primarily due to increases in capital grants and contributions and investment earnings and
decreases in expenses related to general government, public safety and interest on long-term debt
• At the close of the current fiscal year, the City's governmental operating fund (General Fund) reported
a fund balance of approximately $187.46 million, an increase of approximately $27.32 million in
comparison with the prior year.
• The City's total outstanding long-term liabilities had a net increase of approximately $143.78 million
during the current fiscal year primarily due to an increase in claims payable and net OPEB liabilities.
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 some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes
and earned but unused vacation leave). The information is presented with the intent to summarize and
simplify the user's analysis of the cost for the primary government and its component units' governmental
activities.
Both of the government -wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental 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.
25
CITY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2018
The government -wide financial statements include not only the City itself (known as the primary
government), but also its discretely presented component units, which are other governmental units over
which the City can exercise influence and/or may be obligated to provide financial subsidies. Financial
information for these component units is reported separately from the financial information presented for
the primary government itself. The blended component units, although legally separate, function for all
practical purposes as departments of the City, and therefore have been included as an integral part of the
primary government.
The government -wide financial statements can be found on pages 38-39 of this report.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds
of the City can be divided into two categories: governmental funds and fiduciary funds.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government -wide financial statements. However, unlike the government -wide financial
statements, governmental fund financial statements focus on near-term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal year. Such
information may be useful in assessing a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements,
it is useful to compare the information presented for governmental funds with similar information presented
for governmental activities in the government -wide financial statements. By doing so, readers may better
understand the long-term impact of the government's near-term financing decisions. Both the governmental
fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund
balances provide a reconciliation to facilitate this comparison between governmental funds and
governmental activities.
The City maintains thirty-five individual governmental funds. Information is presented separately in the
governmental fund balance sheets and in the governmental fund statements of revenues, expenditures and
changes in fund balances for the general fund, special obligation bonds debt service fund, other capital
projects fund, and impact fee fund, which are considered major funds. Data from the other thirty
governmental funds are combined into a single aggregated presentation. Individual fund data for each of
these non -major governmental funds is provided in the form of combining statements in the combining and
individual fund statements and schedules section of this report
The City adopts an annual appropriated budget for its general fund, special revenue funds, and debt service
funds. Budgetary comparison schedules have been provided for the general fund, special revenue funds and
debt service funds.
The basic governmental fund financial statements can be found on pages 40-43 of this report.
26
CITY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2018
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary
funds are not reported in the government -wide financial statements because the resources of those funds are
not available to support the City's own programs and operations.
The basic fiduciary fund financial statements can be found on pages 44-45 of this report.
Notes to the Financial Statements
The notes provide additional information that is necessary to acquire a full understanding of the data
provided in the government -wide and fund financial statements. The notes to the financial statements can
be found on pages 50-145 of this report.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information concerning budgetary comparisons and the City's progress in funding
its obligations to provide pension benefits to its employees. Required supplementary information can be
found on pages 145-159 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 165-178 of this 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 $629.47 million at the close of the most recent fiscal year, resulting in a net position
deficit. The City's net position reflects its investment in capital assets (e.g. infrastructure, land, buildings,
machinery and equipment); net of accumulated depreciation, less any related debt used to construct or
acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City's investment in capital
assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be
provided from other sources, since the capital assets themselves are typically not used to liquidate these
liabilities. As of September 30, 2018, the City's net investment in capital assets was approximately $578.09
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, 2018, the City's portion of restricted net position was approximately
$358.41 million.
The remaining portion represents an unrestricted net deficit of approximately $1.57 billion, which is
primarily due to outstanding borrowings for which there are no off -setting assets, along with an increase in
claims payable, net pension liability, and OPEB liability.
27
CITY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2018
At the end of the current fiscal year, the City's net position (deficit) decreased from net position deficit of
approximately $678.80 million to approximately a net position deficit of $629.47 million. The reasons for
this overall decrease are discussed in the following sections for governmental activities.
The following schedule reflects a summary of the statement of net position compared to the prior year:
Summary Statement of Net Position (Deficit) as of
September 30, 2018 and 2017
Governmental Activities
2018
2017
Change
Assets
Current and other assets $ 757,464,172 $ 704,559,791 $ 52,904,381 7.51%
Capital Assets 1,113,240,897 1,129,305,020 (16,064,123) -1.42%
Total Assets 1,870,705,069 1,833,864,811 36,840,258 2.01%
Deferred Outflows of
Resources 222,220,447 111,190,591 111,029,856 99.86%
Other Liabilities
240,309,985
215,550,534
24,759,451
11.49%
Long -Term Liabilities
2,345,727,412
2,201,951,781
143,775,631
6.53%
Total Liabilities
2,586,037,397
2,417,502,315
168,535,082
6.97%
Deferred Inflows of
Resources 136,356,671 33,279,788 103,076,883 309.73%
Net Position (Deficit):
Net Investment in
Capital Assets
578,092,580
627,800,618
(49,708,038) -7.92%
Restricted
358,414,955
297,600,108
60,814,847 20.44%
Unrestricted (Deficit)
(1,565,976,087)
(1,431,127,427)
(134,848,660) 9.42%
Total Net Position
(Deficit)
$ (629,468,552)
$ (505,726,701)
$ (123,741,851) 24.47%
28
CITY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2018
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, 2018 and 2017:
Changes in Net Position (Deficit)
Governmental Activities
Expenses:
General Government
2018
2017
Change ($)
Change (%)
Revenues:
22,721,335
19,462,678
3,258,657
16.74%
Program revenues
28,371,102
29,443,452
(1,072,350)
-3.64%
Charges for Services
$ 274,602,207 $
263,222,830 $
11,379,377
4.32%
Operating Grants and Contributions
95,524,077
81,114,292
14,409,785
17.76%
Capital Grants and Contributions
9,069,762
1,078,796
7,990,966
740.73%
General revenues:
22,371,164
19,086,773
3,284,391
17.21%
Property Taxes
397,247,874
363,439,702
33,808,172
9.30%
Franchise Taxes
49,741,913
49,207,879
534,034
1.09%
State Revenue Sharing - Unrestricted
16,380,921
15,687,260
693,661
4.42%
Sales and Other Use Taxes
35,786,997
33,521,269
2,265,728
6.76%
Public Service Taxes
64,250,989
62,532,940
1,718,049
2.75%
Investment Earnings/(Losses) -
Unrestricted
9,681,342
4,544,604
5,136,738
113.03%
Total Revenues
952,286,082
874,349,572
77,936,510
8.91%
Expenses:
General Government
190,825,241
174,982,174
15,843,067
9.05%
Planning and Development
22,721,335
19,462,678
3,258,657
16.74%
Community Development
28,371,102
29,443,452
(1,072,350)
-3.64%
Community Redevelpment Areas
35,272,784
34,616,272
656,512
1.90%
Public Works
123,517,711
95,595,175
27,922,536
29.21%
Public Safety
387,651,947
579,366,645
(191,714,698)
-33.09%
Public Facilities
22,371,164
19,086,773
3,284,391
17.21%
Parks and Recreation
66,817,655
63,380,712
3,436,943
5.42%
Interest on Long -Term Debt
25,405,481
29,663,407
(4,257,926)
-14.35%
Total Expenses
902,954,420
1,045,597,288
(142,642,868)
-13.64%
Change in Net Position 49,331,662 (171,247,716) 220,579,378 -128.81%
Net Position (Deficit) - Beginning (678,800,214) (334,478,985) (344,321,229) 102.94%
Net Position (Deficit) - Ending $ (629,468,552) $ (505,726,701) $ (123,741,851) 24.47%
*The City implemented GASB statement 75 as of October 1, 2017.
*The information was not available to implement the restatement for the prior periods presented in the MD&A.
Governmental Activities
As noted earlier, the City's net position increased by approximately 49.33 million compared to prior fiscal
year. The major changes are as follows:
Total revenues for governmental activities increased over the prior year and were greater than the total
expenses for the governmental activities. Specifically, the charges for services and property taxes increased
29
CITY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2018
over the prior year by $11.38 million and $33.80 million, respectively. The charges for services and
property tax increases reflect the economic recovery in the City. Strong growth in the construction industry
resulted in increased permit fees and assessments, which are included in charges for services. Property taxes
increased 9.30 percent, which is primarily attributed to an increase in property values.
Other significant increases in revenue are primarily attributed to increases in operating grants and
contributions and capital grants and contributions. The increase in operating grants and contributions of
$14.41 million is the result of increases in funding received in the current year relative to the prior year;
primarily related to an increase in Public Works. The increase in capital grants and contributions of $7.99
million is the result of increases in funding received in the current year relative to the prior year; primarily
related to State funding for Wagner Creek and Seybold Canal projects and funding from Miami -Dade
County for capital improvements citywide including Coconut Grove BID and streets and sidewalks related
projects.
Revenues from investment earning also increased over the prior year by $5.14 million (or 113 percent)
primarily due to increases in the federal interest rate from 1.00 — 1.25 percent as of September 2017 to 2.00-
2.25 percent as of September 2018.
During fiscal year 2018, expenses for governmental activities decreased by $142.64 million. Expenses for
Public Safety experienced the most significant decrease of $191.71 million or 33.09 percent during the
current fiscal year. This decrease is primarily due to implementation of GASB Statement No. 75 which
required the City to restate the net position and to report a total OPEB liability, related deferred outflows of
resources and OPEB expenses for the OPEB plan and a change in benefits that resulted in a $122 million
reduction in expenses. The change resulted from settlements entered into between the City and the
Firefighters and Police Officers Retirement Trust (FIFO).
The City's interest expense also decreased $4.26 million when compared to last fiscal year due to
defeasance of certain debt involving advance refunding.
Planning and Development, Public Works, and Public Facilities expenses increased by $3.26 million,
$27.92 million, and $3.28 million, respectively. The increase in Planning and Development expenses is
mainly attributed to renovation of the Building Department at the Miami Riverside Center. The increase in
expenses for Public Works is mainly due to Hurricane Irma debris removal. The increase in Public Facilities
expenses is mainly attributed to a reconciliation settlement agreement with Hyatt Regency.
30
CITY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2018
The following charts provide a visual representation of the expenses and revenues for the governmental
activities for fiscal year ended September 30, 2018:
Expenses and Program Revenues - Governmental
$450,000,000 Activities
5400,000,000
$350,000,000
$300,000,000
$250,000,000 -------
'b\
-.._ -
h
6
ap
G° c
�J
0 Expenses It Revenues
REVENUE BY SOURCE - GOVERNMENTAL ACTIVITIES
Franchise taxes, 5.22
Property taxes, 41.72%
Sates and other use_ Public services tax,
taxes, 3.76% 6.75%
Investment earnings -
estricted, 1.02%
State revenue sharing -
unrestricted, 1.72%
31
Capital grants and
contributions, 0.95%
Charges for services,
28.84%
— Jperating grants and
contributions, 10.03%
CITY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2018
Financial Analysis of Governmental Funds
Governmental Funds
The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and
balances of spendable resources. Such information is useful in assessing the City's financing requirements.
In particular, unassigned fund balance may serve as a useful measure of a government's net resources
available for spending at the end of the fiscal year.
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the City's
total General Fund balance was $187.46 million. Of this amount, the City has approximately $123.05
million retained as designated fund balance, which includes 82.88 million as restricted, approximately
$2.15 million is recorded as non -spendable for prepaid expenses, approximately $38.02 million is
designated as assigned fund balance, and approximately $64.41 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 $27.32 million during the current
fiscal year. Although revenues saw an increase of $44.79 million, expenditures also increased by $27.68
million and transfers in decreased by $5.90 million. Significant revenue increases included property taxes
(10.3 percent) and intergovernmental revenues (4.53 percent). These revenue increases reflect an
improvement in the local economy which appears to have now fully recovered. Investment earnings also
increased significantly (94.5 percent) reflecting an improvement in market conditions and higher federal
interest rates. Expenditure increases are seen in the general fund functions, General Government, Planning
and Development, Public Works, and Public Safety. In each of these areas the increased expenditures are
primarily attributed to increases in retirement contributions and payroll related expenditures.
Financial highlights of the City's other major governmental funds are as follows:
The Impact Fee Fund has a fund balance of $88.45 million. The increase in fund balance of $7.61 million
from the prior year resulted primarily from impact fees associated with an increase in High Rise Residential
Units.
The Other Capital Project Fund has a fund balance of $141.14 million. This represents an increase of
approximately $25.30 million. The increase can be attributed to issuance of debt to fund the vehicle lease
program and transfers from the General Fund to fund capital projects.
The Emergency Services Fund has a fund balance of approximately $17.47 million deficit. This represents a
decrease of approximately $17.25 million. The decrease is attributed to expenditures related to Hurricane
Irma.
32
CITY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2018
General Fund Budgetary Highlights
The FY2018 Adopted Budget maintains funding for current City services, and allows for expanded services
in some categories while lowering the overall millage rate from 8.2900 to 8.0300. The Adopted Budget
includes a lowered overall property tax rate for the seventh year in a row and funds certain strategic
enhancements without reducing services.
The FY2018 City's Adopted General Fund Budget totaled approximately $726.8 million. During the fiscal
year, the general fund budget was amended at mid -year and at year-end. These amendments increased the
previously adopted budget by approximately $ 8.9 million to a revised total of approximately $ 735.7
million. This increase in the general fund is primarily due to higher than budgeted expenditures in a few
departments and the allocation of additional resources to Capital. Capital highlights from the FY2018
Adopted Budget included $24 million of new funding for parks including: the Underline, Virginia Key
Northpoint Park, and Little Haiti Cultural Complex, among others, Citywide repairs, replacements, and
remodeling; $15 million of Technology Projects including $12 million for the First Responder Radio
System and $2 million to modernize and make safe the City's data servers; and funding to purchase new
vehicles and heavy equipment for the Fire -Rescue, Police, Solid Waste, and Public Works Departments.
The City of Miami utilizes a five-year financial forecast to assist with the strategic decision process and to
identify and prepare for future challenges. The Five -Year Financial Forecast projects that revenues will not
grow as fast as anticipated expenditures over the forecast period. Overall, general fund revenues are
projected to grow by 16.6 percent over the next five years and general fund expenditures are projected to
grow by 17.4 percent over the same period. With the projected fund balance of $195.063 million for
FY2018-19, the City will meet the Financial Integrity Principle (FIP) requirement estimated for that year.
However, in FY2021-22 the City is currently not projected to meet the FIP requirement. The City's
Administration is committed to continuing to restore fund balance levels over time to achieve compliance
with the reserve policies outlined in the Financial Integrity Ordinance.
33
CITY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2018
Capital Assets and Debt Administration
Capital Assets
The City's capital assets as of September 30, 2018 were $1.1 billion. Capital assets include land, buildings,
improvements, machinery, equipment and infrastructure. The total decrease in capital assets from the end of
prior year is approximately 1.42 percent.
Capital Assets at Year End
(flet of Depreciation)
Governmental
Activities
Major capital asset events during the current fiscal year included the following:
• Land increased approximately $7.9 million. The increase is attributed in large part to the City acquiring
four properties valued at $2.1 million and CRA Omni acquiring 3 properties valued at $5.8 for fiscal
year 2018.
• Construction in progress increased approximately $20.2 million. The total transfers out of construction
in progress amounted to approximately $28.1 million; however, there was an addition of approximately
$48.3 million in new expenditures during fiscal year 2018.
• Buildings decreased by approximately $4.3 million. The decrease is in large part attributed to $4.0
million in completed construction in progress projects and building acquisitions which includes a new
community building at Antonio Maceo Park offset by $8.3 million in depreciation expense.
• Improvements decreased by approximately $13.6 million. The projects completed during the fiscal year
and transferred from construction in progress, included $3.2 million in building improvements and $4.1
million in land improvements. There was also an addition of $852 thousand in improvements for City
parks and Public Facilities. These transfers and additions are offset by depreciation expense and
retirements incurred for the current fiscal year which net to $21.7 million.
• Machinery and Equipment decreased by approximately $0.8 million. There was $23.0 million in
additions and transfers, primarily attributed to the acquisition of computers , and communication
equipment for several departments, New Computer Software, Audiovisual and Surveillance Equipment
for the Police Depart and operating equipment including heavy duty vehicles for the Fire and Solid
Waste Departments, Cars and Weapons for the Police Department, Medical Equipment for the Fire
34
Change
2018
2017
Change ($)
Land $
111,388,474
$ 103,511,914
$ 7,876,560
7.61%
Construction -in -Progress
104,174,459
83,996,468
20,177,991
24.02%
Buildings
216,395,682
220,697,166
(4,301,484)
-1.95%
Improvements
92,994,564
106,568,892
(13,574,328)
-12.74%
Machinery and Equipment
70,659,296
71,495,826
(836,530)
-1.17%
Infrastructure
517,628,422
543,034,754
(25,406,332)
-4.68%
Total S
1,113,240,897
$ 1,129,305,020
$ (16,064,123)
-1.42%
Major capital asset events during the current fiscal year included the following:
• Land increased approximately $7.9 million. The increase is attributed in large part to the City acquiring
four properties valued at $2.1 million and CRA Omni acquiring 3 properties valued at $5.8 for fiscal
year 2018.
• Construction in progress increased approximately $20.2 million. The total transfers out of construction
in progress amounted to approximately $28.1 million; however, there was an addition of approximately
$48.3 million in new expenditures during fiscal year 2018.
• Buildings decreased by approximately $4.3 million. The decrease is in large part attributed to $4.0
million in completed construction in progress projects and building acquisitions which includes a new
community building at Antonio Maceo Park offset by $8.3 million in depreciation expense.
• Improvements decreased by approximately $13.6 million. The projects completed during the fiscal year
and transferred from construction in progress, included $3.2 million in building improvements and $4.1
million in land improvements. There was also an addition of $852 thousand in improvements for City
parks and Public Facilities. These transfers and additions are offset by depreciation expense and
retirements incurred for the current fiscal year which net to $21.7 million.
• Machinery and Equipment decreased by approximately $0.8 million. There was $23.0 million in
additions and transfers, primarily attributed to the acquisition of computers , and communication
equipment for several departments, New Computer Software, Audiovisual and Surveillance Equipment
for the Police Depart and operating equipment including heavy duty vehicles for the Fire and Solid
Waste Departments, Cars and Weapons for the Police Department, Medical Equipment for the Fire
34
CITY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2018
Department these expenditures are offset by $7.2 million in retirements and approximately $16.6
million in depreciation expense for the current fiscal year.
Infrastructure decreased by approximately $25.4 million. There was $9.2 million in transfers primarily
attributed to roadway improvements. These transfers were offset by $3 4.6 million in depreciation
expense for the current fiscal year.
Additional information on the City's capital assets can be found in Note 1 and Note 5 in the notes to the
financial statements.
Long -Tern: Debt
At the end of the current fiscal year, the City had a total debt outstanding of $665.7 million. Of this amount,
$154.4 million is backed by the Limited Ad Valorem Tax Revenue; the remainder represents Special
Obligation, Revenue bonds and loans secured solely by Non -Ad Valorem revenue sources.
The City's net debt decreased during the current fiscal year by $4.9 million or 0.73 percent.
General Obligation Bonds
Special Obligation,
Revenue Bonds and Loans
Total
Outstanding Debt
General Obligation Bonds, Special Obligations
and Revenue Bonds and Loans
Governmental Activities
2018
$ 154,385,000
2017 S Change % Change
174,640,000 $ 20,255,000 11.60%
511,328,092 486,221,380 25,106,712 5.16%
$ 665,713,092 $ 660,861,380 $ 4,851,712 0.73%
The City's current ratings for all of the various types of debt are shown below:
City of Miami
Bond Ratings
Issue Mood 's Standard & Poor's Fitch
Limited General Obligation Bonds
Aa2
AA-
A -
Marlins Garage
Aa3
AA-
A+
Special Obligation AV
Aa3
AA-
A+
Street and Sidewalks
A2
A
AA -
On February 5, 2019, Moody's Investors Service upgraded the Marlins Garage rating from A2 to Aa3. The
rating upgrade is a correction of prior years.
Additional information on the City's long-term liabilities can be found in Note 8 in the notes to the financial
statements.
35
CITY OF MIAMI, FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
September 30, 2018
Economic Factors and Next Year's Budget and Rates
The budget is developed based on needs and performance, and follows the direction of policy as set by the
elected officials. The process begins with the preparation of the financial outlook, a comprehensive review
of allocation needs that are expected to be required by the City for its operations. These allocations include
a review of salaries and wages (growth as dictated by negotiated union contracts); pension requirement
needs, anticipated insurance premium increases, etc. These allocation needs are then compared to the 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 2018 budget.
Included among these factors were uncertainties regarding pension costs, health insurance costs, other post
employment benefit costs, and other various economic indicators.
The City of Miami, like many municipalities throughout the State, is slowly recovering from the economic
downturn of the previous years. Recently approved State legislation along with a constitutional amendment
passed by Florida voters, lowered the City's taxable values while establishing controls on its millage rate
(discussed below). This legislation and amendment was also a clear indication by the people of the State of
Florida that not enough was done in the previous year to provide property owners with tax relief.
Between FY 2018-19 and FY 2022-23, General Fund revenues are forecasted to grow by a total of 16.6
percent. The largest components of General Fund revenues are Property Taxes (47.1 percent of FY 2018-19
General Fund revenues), Franchise Fees and Other Taxes (15.2 percent), Charges for Services (15.5
percent), Licenses and Permits (8.8 percent), and Intergovernmental Revenues (10.2 percent). Interest, Fines
and Forfeitures, Other Revenues, and Transfers -In comprise the remaining 3.2 percent.
In fiscal year 2019, the total adopted property tax rate is 8.0300 mills, which remained the same as last
year's total tax rate. The FY 2018-19 Budget for General Fund property tax revenue is $359.68 million.
This budget is based on an assessed valuation of $53.07 billion and a General Fund millage rate of 7.5865.
The millage rate is assumed to remain flat over the five-year period. Taxable property values are projected
to increase by 7.0 percent each year of the forecast through FY 2022-23. This assumption is based on the
expectation that the development activity in the City has leveled out and will remain flat through the end of
the five-year period.
Requests for Information
This financial report is designed to provide a general overview of the City's finances for all those with an
interest in the government's finances to demonstrate the City's accountability. Questions concerning any of
the information provided in this report or requests for additional financial information should be addressed
to the City of Miami's Finance Department — Director, 444 Southwest 2na Avenue, Suite 618, Miami,
Florida 33130, or visit the City's web site at www.miamigov.com.
K11
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37
City of Miami, Florida
Statement of Net Position (Deficit)
September 30, 2018
Governmental
Component
Activities
Units
Assets
Cash, Cash Equivalents, and Investments
$ 464,242,616
$ 24,937,391
Receivable - Net
37,482,298
2,743,332
Accrued Interest
1,305,079
-
Due From Other Governments
43,317,528
555,342
Land Held for Resale
90,971
-
Prepaids
2,181,065
779,862
Other Assets
512,453
9,487,728
Restricted Cash, Cash Equivalents, and Investments
Related to Bond Proceeds
49,840,841
-
Restricted Cash, Cash Equivalents, and Investments
158,491,321
28,972,592
Capital Assets:
Non -Depreciable
215,562,933
12,808,617
Depreciable - Net
897,677,964
48,871,934
Total Assets
1,870,705,069
129,156,798
Deferred Outflows of Resources
Deferred Loss on Refunding Bonds
11,149,020
1,004,684
Outflow Related to Pension
211,071,427
1,084,399
Outflow Related to OPEB
28,304
Total Deferred Outflows of Resources
222,220,447
2,117,387
Liabilities
Accounts Payable and Accrued Liabilities
78,942,756
6,157,193
Due to Other Governments
1,905,582
1,280,431
Unearned Revenue
18,209,284
682,505
Deposits
13,708,231
726,562
Accrued Interest Payable
5,994,824
1,578,727
Non -Current Liabilities:
Due Within One Year:
Bonds and Loans Payable
55,718,125
1,820,000
Compensated Absences
10,845,920
15,511
Claims Payable
54,985,263
-
Due In More Than One Year:
Bonds and Loans Payable
614,864,769
62,111,407
Compensated Absences
46,762,358
445,152
Claims Payable
226,381,310
-
Other Post Employment Benefits
596,966,515
509,433
Net Pension Liability
860,752,460
Total Liabilities
$ 2,586,037,397
$ 75,326,921
Deferred Inflows of Resources
Revenue Received in Advance
15,691,272
-
Inflow Related to Pension
57,102,112
780,309
Inflow Related to OPEB
63,563,287
16,399
Total Deferred Inflows of Resources
$ 136,356,671
$ 796,708
Net Position (Deficit)
Net Investment in Capital Assets
578,092,580
4,439,409
Restricted for:
Capital Projects
158,640,310
12,147,594
Debt Service
44,085,896
1,682,936
Pension Benefits
-
1,152,952
Parking Waiver and Transportation
9,511,610
773,947
Parking Surcharge
-
438,876
Building
77,086,917
-
Housing Assistance and Economic Development
33,169,094
-
Law Enforcement
977,259
-
Community Redevelopment
30,355,509
-
Choice Housing Voucher Program
86,713
-
E-911
4,501,647
-
Unrestricted (Deficit)
(1,565,976,087)
34,514,842
Total Net Position (Deficit) (bZy,462S,552) $ 55,150,556
The notes to the financialstatements are an integral part of this statement.
38
City of Miami, Florida
Statement of Activities
For the Fiscal Year Ended September 30, 2018
The notes to the financialstatements are an integral part of this statement.
39
Net (Expense) Revenue and Changes in
Program Revenues
Net Position
Primary
Operating
Capital Government
Charges for
Grants and
Grants and Governmental
Component
Expenses Services
Contributions
Contributions Activities
Units
Functions/Programs:
Primary Government:
Governmental Activities:
General Government
$ 190,825,241 $ 79,797,773
$ 15,466,760
$ 7,295,726 $ (88,264,982)
$
Planning and Development
22,721,335 45,574,467
-
- 22,853,132
Community Development
28,371,102 538,541
28,981,482
- 1,148,921
-
Community Redevelpment Areas
35,272,784 4,332,416
1,262,562
- (29,677,806)
-
Public Works
123,517,711 61,719,832
18,092,478
- (43,705,401)
-
Public Safety
387,651,947 39,758,747
30,492,751
- (317,400,449)
-
Public Facilities
22,371,164 35,922,411
93,730
1,189,708 14,834,685
-
Parks and Recreation
66,817,655 6,958,019
1,134,314
584,328 (58,140,994)
-
Interest on Long -Term Debt
25,405,481
(25,405,481)
Total Primary Government
$ 902,954,420 S 274,602,206
S 95.524.077
S 9,069.762 S (523,758,375)
S
Component Units:
Miami Sports and Exhibition Authority $ 142,217 $ 144,765
$ -
S S
$
2,548
Department of Off -Street Parking
31,816,774 34,244,848
2,428,074
Downtown Development Authority
7,547,112 -
-
(7,547,112)
Bayfront Park Management Trust
6,201,049 6,136,831
-
(64,218)
Coconut Grove BID
1,672,919 1,706,582
-
-
33,663
Wymvood BID
787,042 1,464,153
-
-
677,111
Civilian Investigative Panel
785,685 -
1,124,000
-
338,315
Total Component Units
$ 48,952,798 $ 43,697,179
$ 1,124,000
$ $
$
(4,131,619)
General Revenues:
Taxes:
Property Taxes, levied for general purposes
$ 369,230,063
$
8,223,153
Property Taxes, levied for debt service
28,017,811
-
Franchise Taxes
49,741,913
-
State Revenue Sharing - Unrestricted
16,380,921
-
Sales and Other Use Taxes
35,786,997
-
Public Service Taxes
64,250,989
-
Investment Earnings - Unrestricted
9,681,343
12,842
Other General Revenues
148,984
Total General Revenues
573,090,037
8,384,979
Change in Net Position
49,331,662
4,253,360
Net Position - Beg.(Deficit) as restated (Note 1)
(678,800,214)
50,897,196
Net Position - Ending (Deficit)
S (629,468,552)
S
55,150,556
The notes to the financialstatements are an integral part of this statement.
39
City of Miami, Florida
Balance Sheet
Governmental Funds
September 30, 2018
Liabilities and Fund Balances
Major Funds
Liabilities:
Non -Major
Total
14,632,375 4,348,009 2,173,065
15,147,642
Other Capital
Emergency
Governmental
Governmental
4,224
General
Projects Impact Fee
Services
Funds
Funds
Assets
Due to Other Governments
286,092
- - -
1,619,490
1,905,582
Pooled Cash, Cash Equivalents, and Investments
$ 194,342,429
$ 157,741,752 $ -
$ -
$ 112,158,435
$ 464,242,616
Restricted Cash, Cash Equivalents, and Investments
-
- 92,689,507
-
115,642,655
208,332,162
Receivables (Net of Allowance for Uncollectibles):
20,807,072
146,155,327
Total Liabilities, Deferred Inflows of Resources and
Loans Receivable
-
- -
-
1,794
1,794
Accounts Receivable
30,702,858
1,600 -
-
3,894,670
34,599,128
Property Tax
2,664,532
- -
-
216,844
2,881,376
Due From Other Governments
6,912,043
16,103,469 -
6,444,780
13,857,236
43,317,528
Due From Other Funds
33,389,474
- -
-
-
33,389,474
Accrued Interest
979,382
4,109 108,618
-
212,970
1,305,079
Prepaids
2,154,528
- -
-
26,537
2,181,065
Other Assets
195,024
317,429
512,453
Total Assets
$ 271,340,270
$ 173,850,930 $ 92,798,125
$ 6,444,780
$ 246,328,570
$ 790,762,675
Liabilities and Fund Balances
Liabilities:
Accounts Payable and Accrued Liaibilities
40,960,966
14,632,375 4,348,009 2,173,065
15,147,642
77,262,057
Other Liabilities
1,676,475
- - -
4,224
1,680,699
Due to Other Funds
-
7,823,188 - 21,745,950
3,820,336
33,389,474
Due to Other Governments
286,092
- - -
1,619,490
1,905,582
Unearned Revenue
9,104,531
9,104,753 - -
-
18,209,284
Deposits
13,492,851
-
215,380
13,708,231
Total Liabilities
65,520,915
31,560,316 4,348,009 23,919,015
20,807,072
146,155,327
Deferred Inflows of Resources
Revenue Received in Advance 15,691,272 - - - - 15,691,272
Unavailable Revenue- Other 2,664,532 1,148,411 3,133,844 6,946,787
Total Deferred Inflows of Resources 18,355,804 1,148,411 - - 3,133,844 22,638,059
Fund Balances:
Non -Spendable Fund Balance
Non Spendable
2,154,528
- - -
1,026,537
3,181,065
Spendable Fund Balance
Restricted
82,882,117
47,939,319 88,450,116 -
182,460,427
401,731,979
Committed
-
71,028,576 - -
36,618,001
107,646,577
Assigned
38,015,621
22,174,308 - -
2,315,463
62,505,392
Unassigned (deficit)
64,411,285
- (17,474,235)
(32,774)
46,904,276
Total Fund Balances (deficit)
187,463,551
141,142,203 88,450,116 (17,474,235)
222,387,654
621,969,289
Total Liabilities, Deferred Inflows of Resources and
Fund Balances
$ 271.340,270
$ 173,850,930 $ 92,798,125 $ 6,444,780
$ 246,328,570
$ 790,762,675
The notes to the financialstatements are an integral part of this statement.
40
City of Miami, Florida
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
For the Fiscal Year Ended September 30, 2018
Fund Balances - Total Governmental Funds
Amounts reported for governmental activities in the Statement of
Net Position are different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the governmental funds.
$ 621,969,289
Governmental Capital Assets 2,585,935,790
Less: Accumulated Depreciation (1,472,694,893) 1,113,240,897
Inventory for land held for resale are not financial
resources and therefore are not reported in the governmental funds. 90,971
Deferred inflow and outflow related to the City's Pension Plans and
Other Post Employment Benefit Plans (OPEB) are amortized in future periods
and are therefore not reported in the governmental funds:
Deferred outflows related to pensions 211,071,427
Deferred inflow related to pensions (57,102,112)
Deferred inflow related to OPEB plan (63,563,287) 90,406,028
Loss on refunding of debt is recognized in the statement of Net Position and
amortized over the term of the bond 11,149,020
Grant receivables are reported as deferred inflows in the fund financial
statements due to amounts being unavailable; under full accrual accounting
they are reported as revenues. 4,065,411
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. 2,881,376
Long-term liabilities are not due and payable in the current period
and therefore are not reported in the governmental funds.
Bonds, Notes, and Loans Payable
(670,582,894)
Compensated Absences
(57,608,278)
Claims Liability
(281,366,573)
Total OPEB Liability
(596,966,515)
Net Pension Liability
(860,752,460)
Accrued Interest Payable
(5,994,824) (2,473,271,544)
Net Position (Deficit) of Governmental Activities
$ (629,468,552)
The notes to the financialstatements are an integral part of this statement.
41
City of Miami, Florida
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For The Fiscal Year Ended September 30, 2018
The notes to the financia[statements are an integral part of this statement.
42
Major Funds
Non -Major
Total
Other Capital
Emergency
Governmental
Governmental
General
Projects
Impact Fee
Services
Funds
Funds
Revenues
Property Taxes
$ 325,267,816
$ -
$
$ -
$ 71,980,058
$ 397,247,874
Franchise and Other Taxes
113,992,902
-
-
-
113,992,902
Licenses and Permits
73,313,619
-
-
-
443,167
73,756,786
Fines and Forfeitures
13,887,391
-
-
-
1,751,137
15,638,528
Intergovernmental Revenues
69,954,774
9,069,762
-
7,871,353
69,453,410
156,349,299
Charges for Services
117,481,066
293,789
-
-
15,957,803
133,732,658
Investment Earnings (Loss)
5,808,378
-
1,343,045
-
2,529,919
9,681,342
Impact Fees
-
-
20,861,463
-
-
20,861,463
Other
19,057,070
7,840
6,026,328
5,521,533
30,612,771
Total Revenues
738,763,016
9,371,391
22,204,508
13,897,681
167,637,027
951,873,623
Expenditures
Current Operating:
General Government
104,803,715
1,472,090
5,355
94,791
10,847,257
117,223,208
Planning and Development
20,566,954
910,416
-
242
1,048,929
22,526,541
Community Development
1,566,902
76,967
-
2,286
26,685,844
28,331,999
Community Redevelpment Areas
-
-
-
-
33,972,903
33,972,903
Public Works
77,187,997
1,359,266
79,526
20,471,907
14,151,274
113,249,970
Public Safety
370,435,719
703,198
948,037
8,136,092
18,108,149
398,331,195
Public Facilities
11,690,124
979,204
-
940,713
4,488,059
18,098,100
Parks and Recreation
46,354,888
2,173,032
2,484,720
1,060,619
1,898,365
53,971,624
Debt Service:
Principal
-
-
-
-
53,599,962
53,599,962
Interest and Other Charges
-
-
-
35,299,145
35,299,145
Capital Outlay
2,625,162
43,144,617
11,077,252
447,004
23,527,631
80,821,666
Total Expenditures
635,231,461
50,818,790
14,594,890
31,153,654
223,627,518
955,426,313
Excess (Deficiency) of Revenues
Over (Under) Expenditures
103,531,555
(41,447,399)
7,609,618
(17,255,973)
(55,990,491)
(3,552,690)
Other Financing Sources (Uses)
Transfers In
6,163,609
42,706,976
-
-
69,886,943
118,757,528
Transfers Out
(82,653,000)
(476,000)
-
(35,628,527)
(118,757,527)
Proceeds from Sale of Property
277,969
-
-
-
277,969
Proceeds Received from Refunding
-
-
-
83,045,000
83,045,000
Payment To Escrow Agent For Refunding
-
-
(74,105,000)
(74,105,000)
Issuance of Debt
24,511,675
25,000,000
49,511,675
Total Other Financing Sources (Uses)
(76,211,422)
66,742,651
-
68,198,416
58,729,645
Net Changes in Fund Balances (Deficit)
27,320,133
25,295,252
7,609,618
(17,255,973)
12,207,925
55,176,955
Fund Balances(Deficit)- Beginning
160,143,418
115,846,951
80,840,498
(218,262)
210,179,729
566,792,334
Fund Balances (Deficit) - Ending
$ 187,463,551
$ 141,142,203
$ 88,450,116
$ (17,474,235)
$ 222,387,654
$ 621,969,289
The notes to the financia[statements are an integral part of this statement.
42
City of Miami, Florida
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the Fiscal Year Ended September 30, 2018
Net Changes in Fund Balances - Total Governmental Funds $ 55,176,956
Amounts reported for governmental activities in the Statement of Activities are different because:
Grant revenues are reported as deferred inflows in the fund financial statements due to amounts being
unavailable, under full accrual accounting they are reported as revenues. 106,640
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. 305,818
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities
the cost of these assets is depreciated over their estimated useful lives.
Expenditures for capital assets 80,821,666
Less: current year depreciation (88,054,565) (7,232,899)
The net effect of various transactions involving capital assets (i.e. sales and disposals)
is to decrease net position. (8,831,224)
The issuance of long-term debt provides current financial resources and the payment of the
principal on long-term debt consumes the resources of the governmental funds.
Principal paid on bonds and loans
53,599,962
Net effect of deferring and amortizing premiums, discounts, and accretion
1,566,708
Issuance of debt -special obligation
(25,000,000)
Issuance of debt -capital lease
(11,643,949)
Issuance of debt -state revolving loan
(12,867,726)
The net increase in the loss on debt refunding
8,229,399
Issuance of debt -refunding of bonds
(83,045,000)
Payment to escrow agent for refunding
74,105,000 4,944,394
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 (7,593,030)
Claims payable (71,940,144)
Total OPEB liability and related deferred inflows and outflows (30,131,289)
Net pension liability and related deferred inflows and outflows 114,428,883
Accrued interest payable 97,557 4,861,977
Change in Net Position (Deficit) of Governmental Activities $ 49,331,662
The notes to the financialstatements are an integral part of this statement.
43
City of Miami, Florida
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2018
Assets
Cash and Cash Equivalents
Accounts Receivable
Capital Assets, Net
Investments:
U.S. Government Obligations
Corporate Bonds
Corporate Stocks
Money Market Funds and Commercial Paper
International Equity
Real Estate
Private Equity
Absolute Return Funds
Total Investments
Securities Lending Collateral
Total Assets
Liabilities
Obligations Under Security Lending Transactions
Accounts Payable
Accrued Liability
Payable for Securities Purchased
Total Liabilities
Net Position
Restricted for Pension Benefits
Employee
Retirement
Funds
$ 52,502,864
8,226,492
3,182,267
63,911,623
230,621,355
318,037,236
980,830,387
30,032,445
258,016,522
179,279,484
156,839,046
75,013,697
2,228,670,172
143,720,934
2,436,302,729
143,720,934
899,053
1,250,601
7,754,716
153,625,304
$ 2,282,677,425
The notes to the financialstatements are an integral part of this statement.
44
City of Miami, Florida
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Fiscal Year Ended September 30, 2018
Additions
Contributions:
Employer
Plan Members
Total Contributions
Investment Earnings:
Net Increase in Fair Value of Investments
Interest
Dividends
Other
Total Investment Earnings
Security Lending Activities:
Security Lending Income
Security Lending Fees and Rebates
Net Income From Security Lending Activities
Less Investment Expenses
Net Investment Earnings
Reimbursement from City for Administrative Costs
Total Additions
Deductions
Benefit Payments
Refunds upon Resignation, Death, Other
Distribution to Retirees
Administrative Expenses and Other Expenses
Total Deductions
Change in Net Position
Net Position Restricted for Pension Benefits - Beginning of Year, As Restated (Note 15)
Net Position Restricted for Pension Benefits - End of Year
The notes to the financialstatements are an integral part of this statement.
45
Employee
Retirement
Funds
$ 99,296,827
25,138,857
124,435,684
135,153,848
22,598,381
14,149,756
268,270
172,170,255
646,466
(161,508)
484,958
(9,564,800)
163,090,413
3,176,005
290,702,102
204,579,055
2,540,479
25,279,985
5,595,292
237,994,811
52,707,291
2,229,970,134
$ 2,282,677,425
City of Miami, Florida
Statement of Net Position
Discretely Presented Component Units
September 30, 2018
The notes to the fnancialstatements are an integral part of this statement.
46
Miami Sports
Department
Downtown
Bayfront Park
and Exhibition
of Off -Street
Development
Management
Authority
Parking
Authority
Trust
Assets
Cash, Cash Equivalent and Investments
$ 775,880
$ 7,596,900
$ 5,261,950
$ 3,150,855
Receivables (Net of uncollectible accounts)
-
677,882
435,901
7,972
Due From Other Governments
-
555,342
-
-
Prepaids
8,821
604,119
117,451
42,537
Other Assets
-
8,985,935
-
501,793
Restricted Assets:
Cash, Cash Equivalents, and Investments
-
28,9725592
-
-
Capital Assets:
Non -Depreciable
-
12,292,488
-
516,129
Depreciable, Net
-
41,931,406
223,788
6,157,708
Total Assets
784.701
101,616,664
6,039,090
10,376,994
Deferred Outflows of Resources
Deferred Loss on Refunding Bonds
-
1,004,684
-
-
Outflow Related to Pension
1,084,399
-
-
Outflow Related to OPEB
-
28,304
-
-
Total Deferred Outflows of Resources
-
2,117,387
-
-
Liabilities
Accounts Payable and Accrued Liabilities
9,459
4,815,697
1,044,341
76,909
Due to Other Governments
-
1,280,431
-
-
Unearned Revenue
-
465,527
-
216,978
Deposits
250,000
364,847
-
111,715
Accrued Interest Payable
-
1,578,727
-
-
Non -Current Liabilities
Due Within One Year:
Bonds and Loans Payable
-
1,820,000
-
-
Compensated Absences
-
-
15,511
-
Due In More Than One Year:
Bonds and Loans Payable
-
62,111,407
-
-
Compensated Absences
-
341,470
103,682
-
Other Post Employment Benefits
-
509,433
-
-
Total Liabilities
259,459
73,287,539
1,163,534
405,602
Deferred Inflows of Resources
Inflow Related to Pension
-
780,309
-
-
Inflow Related to OPEB
-
16,399
-
-
Total Deferred Inflows of Resources
-
796,708
-
Net Position
Net Investment in Capital Assets
-
(3,017,248)
223,788
6.673.837
Restricted for:
Capital Projects
-
12,147,594
-
-
Debt Service
-
1,682,936
-
-
Pension Benefits
-
1,152,952
-
-
Parking Waiver and Transportation
-
-
-
-
Parking Surcharge
-
-
-
-
Unrestricted
525,242
17,683,570
4,651,768
3,297,555
Total Net Position
$ 525,242
$ 29,649,804
$ 4,875,556
$ 9,971,392
The notes to the fnancialstatements are an integral part of this statement.
46
City of Miami, Florida
Statement of Net Position
Discretely Presented Component Units
September 30, 2018
The notes to the financialstatements are an integral part of this statement.
47
Coconut
Civilian
Grove
Wynwood
Investigative
BID
BID
Panel
Total
Assets
Cash, Cash Equivalent and Investments
$ 6,924,080 $
810,934
$ 416,792 $
24,937,391
Receivables (Net of uncollectible accounts)
576,886
1,044,691
-
2,743,332
Due From Other Governments
-
-
-
555,342
Prepaids
6,658
-
276
779,862
Other Assets
-
-
-
9,487,728
Restricted Assets:
Cash, Cash Equivalents, and Investments
-
-
-
28,972,592
Capital Assets:
Non -Depreciable
-
-
-
12,808,617
Depreciable, Net
559,032
-
-
48,871,934
Total Assets
8,066,656
1,855,625
417,068
129,156,798
Deferred Outflows of Resources
Deferred Loss on Refunding Bonds
-
-
-
1,004,684
Outflow Related to Pension
-
-
-
1,084,399
Outflow Related to OPEB
-
-
-
28,304
Total Deferred Outflows of Resources
-
-
-
2,117,387
Liabilities
Accounts Payable and Accrued Liabilities
164,938
10,000
35,849
6,157,193
Due to Other Governments
-
-
-
1,280,431
Unearned Revenue
-
-
682,505
Deposits
-
-
726,562
Accrued Interest Payable
-
-
-
1,578,727
Non -Current Liabilities
Due Within One Year:
Bonds and Loans Payable
-
-
-
1,820,000
Compensated Absences
-
-
-
15,511
Due In More Than One Year:
Bonds and Loans Payable
-
-
-
62,111,407
Compensated Absences
-
-
-
445,152
Other Post Employment Benefits
-
-
-
509,433
Total Liabilities
164,938
10,000
35,849
75,326,921
Deferred Inflows of Resources
Inflow Related to Pension
-
-
-
780,309
Inflow Related to OPEB
-
-
16,399
Total Deferred Inflows of Resources
-
-
-
796,708
Net Position
Net Investment in Capital Assets
559,032
-
-
4,439,409
Restricted for:
Capital Projects
-
-
-
12,147,594
Debt Service
-
-
-
1,682,936
Pension Benefits
-
-
-
1,152,952
Parking Waiver and Transportation
703,147
70.800
-
773,947
Parking Surcharge
438,876
-
-
438,876
Unrestricted
6,200,663
1,774,825
381,219
34,514,842
Total Net Position
$ 7,901,718 $
1,845,625
$ 381,219 $
55,150,556
The notes to the financialstatements are an integral part of this statement.
47
Miami Sports and
Exhibition Authority
Culture and Recreation
Total Miami Sports Exhibition Authority
Department
of Off -Street Parking
Transportation
Total Department of Off -Street Parking
Downtown
Development Authority
Economic Development
Total Downtown Development Authority
Bayfront Park
Parks and Recreation
Total Bayfront Park
Coconut Grove BID
General Government
Total Coconut Grove BID
Wynwood BID
General Government
Total Wynwood BID
Civilian Investigate Panel
General Government
Total Civilian Investigate Panel
Total Component Units
City of Miami, Florida
- - -
Discretely Presented Component Units
7,547,112
Statement of Activities
-
For the Fiscal Year Ended September 30, 2018
6,136,831 - -
Program Revenues
6,201,049
Operating Capital
Miami Sports
Charges for Grants and Grants and
and Exhibition
Expenses Services Contributions Contributions
Authority
1,706,582 - -
$ 142,217 $ 144,765 $ - $ -
$ 2,548
142,217 144,765 - -
2,548
31,816,774 34,244,848 - - -
31,816,774 34,244,848 - - -
7,547,112
- - -
-
7,547,112
- - -
-
6,201,049
6,136,831 - -
-
6,201,049
6,136,831 - -
-
1,672,919
1,706,582 - -
-
1,672,919
1,706,582 - -
-
787,042
1,464,153 - -
-
787,042
1,464,153 - -
-
785,685
- 1,124,000 -
-
785,685
- 1,124,000 -
-
$ 48,952,798
$ 43,697,179 $ 1,124,000 $ -
$ 2,548
General Revenues:
Taxes:
Property Taxes
-
Investment Earnings (Loss)
611
Other General Revenues
-
Total General Revenue
611
Change in Net Position
3,159
Net position - Beg. as restated (Note 1)
522,083
Net position - Ending
$ 525,242
The notes to the financialstatements are an integral part of this statement.
48
City of Miami, Florida
Discretely Presented Component Units
Statement of Activities
For the Fiscal Year Ended September 30, 2018
Net (Expense) Revenue and
Changes in Net Position
Bayfront
Department Downtown Park Civilian
of Off -Street Development Management Coconut Wynwood Investigative
Parking Authority Trust Grove BID BID Panel Totals
$ - $ - $ - $ - $ 2,548
2,548
2,428,074 - - - - 2.428.074
2,428,074 - - - - - 2.428.074
(7,547,112) - - - - (7,547,112)
(7,547,112) - - - - (7,547,112)
(64,218) - - - (64,218)
(64,218) - - - (64,218)
33,663 - 33,663
33,663 - - 33,663
677,111 - 677,111
677,111 - 677,111
338.315 338,315
- - - - - 338,315 338,315
$ 2,428,074 $ (7,547,112) $ (64,218) $ 33,663 $ 677,111 $ 338,315 $ (4,131,619)
- 8,223,153 - - - - 8,223,153
- 9,057 3,174 - - - 12,842
- 148,984 - - - - 148,984
- 8,381,194 3,174 - - - 8,384,979
2,428,074 834,082 (61,044) 33,663 677,111 338,315 4,253,360
27,221,730 4,041,474 10,032,436 7,868,055 1,168,514 42,904 50,897,196
$ 29,649,804 $ 4,875,556 $ 9,971,392 $ 7,901,718 $ 1,845,625 $ 381,219 $ 55,150,556
The notes to the financialstatements are an integral part of this statement.
49
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2018
NOTE 1. — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City, which is located in the county of Miami -Dade, was incorporated in 1896, and has a population
of 481,333. The City is situated at the mouth of the Miami River on the western shores of Biscayne Bay
and is a main port of entry into Florida and is the county seat of Miami -Dade County, Florida. The City
comprises 35.87 square miles of land and 19.42 square miles of water.
The City's Charter was adopted by the electors of the City of Miami at an election held on May 17, 1921
and was legalized and validated by Chapter 9024 of the laws of the State of Florida of 1921. During
fiscal year 1997, the residents of the City voted on a referendum that created single -member districts and
an Executive Mayor form of government. The City continues to operate under the Commission/City
Manager form of government and provides the following services: police and fire protection, public
works activities, refuse collection, parks and recreational facilities, planning and development,
community development, financial services, and general administrative services.
The Florida Legislature, in 1955, approved and submitted to a general election, a constitutional
amendment designed to give a new form of government to Miami -Dade County, Florida (the "County").
The County is, in effect, a municipality with governmental powers affecting thirty-five cities and
unincorporated areas, including the City. The County has not displaced nor replaced the City's powers,
but supplements them. The County can take over particular activities of the City's operations if (1) the
services fall below minimum standards set by the County Commission or (2) with the consent of the
governing body of the City. Accordingly, the County's financial statements are not included in this
report.
The accompanying financial statements include those of the City (the primary government) and those of
its component units. Component units are legally separate organizations for which the primary
government is financially accountable or organizations which should be included in the City's financial
statements because of the nature and significance of their relationship with the primary government.
GASB Codification of Governmental Accounting and Financial Reporting Standards Section 2100
provides guidance for the inclusion of a legally separate entity as a component unit of an entity. The
application of this guidance provides for identification of any entities for which the City is financially
accountable or organizations that the nature and significance of their relationship with the City are such
that exclusions would cause the City's basic financial statements to be misleading or incomplete. Based
upon the application of GASB Codification Section 2100, the financial statements of the component
units listed on the following pages have been included in the City's reporting entity as either blended or
discretely presented component units.
Blended component units, although legally separate entities, are in substance part of the City's
operations. Accordingly, data from these component units are included with data of the primary
government. Each discretely presented component unit, on the other hand, is reported in a separate
column in the financial statements to emphasize that they are legally separate from the City. The
financial balances and activities for each blended and discretely presented component unit are as of and
for the year ended September 30, 2018.
50
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
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 residential
and commercial activity of the Omni area. The City has entered into an interlocal agreement with Miami -
Dade County approving the deposit of tax increments into the separate OMNI CRA accounts. The
members of the City Commission are the Board of Directors of the OMNI CRA. Additionally, under the
interlocal agreement the City handles the disbursement, accountability, management, and proper
application of all monies in the OMNI CRA accounts. The OMNI CRA is included within the reporting
entity as a special revenue fund (OMNI CRA).
MIDTOWN COMMUNITY REDEVELOPMENT AGENCY ("MIDTOWN CRA") — MIDTOWN CRA
is an Agency established by the City in 2005 under the provisions of Section 163.330, Florida Statutes
and City Resolution No. 05-002. The purpose of the Agency is to eliminate blight and slum conditions
within the redevelopment area of the agency pursuant to the redevelopment plans of the Agency for new
residential and commercial activity of the Midtown area. The MIDTOWN CRA entered into an
interlocal agreement with the City, Miami -Dade County, and the Midtown Community Development
District whereby tax increments would be deposited into the separate MIDTOWN CRA accounts. The
members of the City Commission are the Board of Directors of the MIDTOWN CRA. Additionally,
under the interlocal agreement the City handles the disbursement, accountability, management, and
proper application of all monies in the MIDTOWN CRA accounts. The MIDTOWN CRA is included
within the reporting entity as a special revenue fund (MIDTOWN CRA).
VIRGINIA KEY BEACH PARK TRUST ("VKBPT") — On December 14, 2000 (and effective January
2001), via sections 38-230 through 38-242 of Chapter 38 of the Code of the City of Miami Ordinance
12003, the VKBPT was established and acts as a limited agency and instrumentality of the City of
Miami. Its general purposes, in cooperation with City of Miami, are to preserve, restore, and maintain
the Historic Virginia Key Beach Park in a manner consistent with environmental health, the historical
importance of the Park and the aspirations of the African American Community, make it accessible to
the general public, propose policy, planning, and design to ensure maximum community utilization and
enjoyment. The City Commission must approve VKBPT's board membership and operating budget. The
City considers itself the exclusive recipient of the services provided by VKBPT and therefore its
operations are blended in the reporting entity as a special revenue fund (Virginia Key Beach Park Trust).
51
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
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 Department of Housing
and Community Development and other City departments, is responsible for oversight of and facilitating
the City's revitalization efforts for the redevelopment of the Liberty City Community Revitalization
District in a manner consistent with the strategy identified in the Five -Year Consolidated Plan, adopted
by the City Commission in August, 1999. Liberty City's specific purpose is to purchase land and
renovate capital assets that belong to the City of Miami within the Liberty City area. The City
Commission must approve Liberty City's board membership and operating budget. The City considers
itself the exclusive recipient of the services provided by Liberty City and therefore its operations are
blended in the reporting entity as a special revenue fund (Liberty City Revitalization Trust).
Discretely Presented Component Units
MIAMI SPORTS AND EXHIBITION AUTHORITY ("MSEA") — The MSEA was created by the City
in 1983 pursuant to Chapter 212.0305, Florida Statutes and City Ordinance No. 9662 adopted by the
City Commission (as amended by City Ordinance No. 11155) and Section 213.0305 of the Florida
Statutes to promote the development of sports, convention and exhibition facilities within the City, and
attracting professional sports franchises and exhibitions to utilize the City's and/or Authorities' facilities.
The City Commission must approve MSEA's board membership and operating budget. Therefore, the
MSEA is fiscally dependent and the City is discretely presenting the MSEA in the accompanying
financial statements.
DEPARTMENT OF OFF-STREET PARKING OF THE CITY OF MIAMI, FLORIDA, d/b/a MIAMI
PARKING AUTHORITY ("DOSP") — The DOSP was originally created in 1955 by a special act of the
Florida State Legislature (Laws of Florida Chapter 30.997, as amended) and subsequently incorporated
into the City's Charter in 1968. The DOSP is an agency and instrumentality of the City which owns and
operates parking facilities within the City. The City Commission has reserved the right to confirm new
members of the DOSP Board, to establish and fix rates and charges for parking services, to approve the
DOSP's operating budget and to authorize the issuance of revenue bonds. Therefore, the DOSP is
fiscally dependent and the City is discretely presenting the DOSP in the accompanying financial
statements.
DOWNTOWN DEVELOPMENT AUTHORITY ("DDA") — The DDA was created by the City in 1965
pursuant to Chapter 65-1090 of the General Laws of Florida and City Code Section 14-25. The DDA is
governed by a board appointed by the City Commission and was established for the purpose of
furthering the development of the Downtown Miami area by promoting economic growth in the region
and strengthening downtown's appeal as a livable city as well as a regional, national and international
center for commerce and culture. The City Commission must approve the DDA's operating budget and
the millage levied on the special taxing district established to fund the DDA. Therefore, the DDA is
fiscally dependent and the City is discretely presenting the DDA in the accompanying financial
statements.
BAYFRONT PARK MANAGEMENT TRUST ("BFP") — The BFP was established by the City in 1987
under the authority of City of Miami Resolution No. 10348. The BFP was created for the purpose of
managing and operating the events held at Bayfront and Bicentennial Park and the daily maintenance
and upkeep of the grounds, its various amenities including the amphitheater and the Mildred and Claude
Pepper Fountain. The governing body of the BFP consists of nine appointed members serving initial
52
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
terms of one to three years. Upon expiration of an initial term, each successor member may be
appointed by the City Commission for terms of one to three years. The BFP has appointed an executive
director to act as the chief executive officer, subject to policy directives. The BFP prepares and submits
an annual budget request and master plan to the City Commission for its approval for each fiscal year.
Therefore, the BFP is fiscally dependent and the City is discretely presenting the BFP in the
accompanying financial statements.
CIVILIAN INVESTIGATIVE PANEL ("CIP") — The CIP was established by the City of Miami
Commission Ordinance Number 12188 on February 14, 2002 for the purpose of creating an independent
citizen's oversight panel to conduct investigations related to allegations of police misconduct, review
policies, practices and procedures of the police department and perform community outreach programs.
The CIP consists of thirteen members who were originally appointed as follows: a) the Miami City
Commission selects and appoints nine members, b) the Mayor selects three members whose names are
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 ("BID"), where the BID 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 ("BID Board")
to stabilize and improve retail and other businesses in the BID area through promotion, management,
marketing and other similar services, including, but not limited to, coordination, funding,
implementation and maintenance of all infrastructure improvement, and other projects, utilizing BID
assessment proceeds and other funds identified. The BID prepares and submits an annual budget request
and master plan to the City Commission for its approval for each fiscal year. Therefore, the BID is
fiscally dependent and the City is discretely presenting the BID in the accompanying financial
statements.
WYNWOOD BUSINESS IMPROVEMENT DISTRICT ("WBID") — On June 4, 2013, the City
through its Office of the City Clerk tabulated the results of a special election for the creation of the
Wynwood Business Improvement District ("BID"), where the BID was deemed to be approved by a
majority of the affected property owners. During July 2013, under City Ordinance No. 13-00831, the
City approved to establish a new Wynwood Business Improvement District Board ("BID Board") to
manage the BID in stabilizing and improving retail and other businesses in the BID area through
promotion, management, marketing and other similar services, including, but not limited to,
coordination, funding, implementation and maintenance of all infrastructure improvement, and other
projects, utilizing BID assessment proceeds and other funds identified. The BID prepares and submits an
annual budget request to the City Commission for its approval for each fiscal year. Therefore, the BID is
fiscally dependent and the City is discretely presenting the BID in the accompanying financial
statements.
53
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
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. 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 2nd Ave.
3' Floor
Miami, Florida 33136
OMNI/MIDTOWN CRA
1401 North Miami Ave.
2" Floor
Miami, Florida 33136
Virginia Key Beach Park Trust
4020 Virginia Beach Drive
Miami, Florida 33149
Miami Sports & Exhibition
Authority
3500 Pan American Drive
Miami, Florida 33133
Dept. Off Street Parking
40 NW 3rd Street
Suite 1103
Miami, Florida 33128
Downtown Develop. Authority
200 S. Biscayne Blvd.
Suite 2929
Miami, Florida 33131
Civilian Investigative Panel
970 SW Is'Street
Suite 305
Miami, Florida 33130
B. Government -Wide Financial Statements
Coconut Grove BID
3390 Mary Street
Suite 130
Miami, Florida 33133
Wynwood BID
310 NW 261' Street
Suite 1
Miami, Florida 33127
Liberty City Community
Revitalization Trust
4800 NW 12'' Avenue
Miami, Florida 33127-2218
Bayfront Park Mgmt. Trust
301 N. Biscayne Blvd.
Miami, Florida 33132-2226
The accompanying financial statements of the City of Miami, Florida (the "City") have been prepared in
conformity with U.S. Generally Accepted Accounting Principles (GAAP). The Governmental
Accounting Standards Board ("GASB") is the standard-setting body for governmental accounting and
financial reporting. The GASB periodically updates its codification of the existing Governmental
Accounting and Financial Reporting Standards which, along with subsequent GASB pronouncements
(Statements and Interpretations), constitutes GAAP for governmental units. The more significant of these
accounting policies are described below.
The government -wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the non -fiduciary activities of the City and its component units.
The primary government is reported separately from the legally separate discrete component units. The
statement of net position presents the financial position of the City and its discretely presented
component units at the end of its fiscal year. The statement of activities demonstrates the degree to which
the direct expenses of a given function or segment are offset by program revenues. Direct expenses are
those that are clearly identifiable with a specific function or segment and indirect expenses (claims
payable, compensated absences, pension benefits, and other post -employment benefits) are allocated to
activities based on each activities pro -rata share of the cost incurred. Program revenues include 1)
54
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
charges to customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment, and 2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function or segment. Taxes and other
items that are not deemed to be program revenues are reported instead as general revenues
C. Fund Financial Statements
The accounts of the City are organized and operated on the basis of funds. A fund is an independent
fiscal and accounting entity with a self -balancing set of accounts which comprise its assets, liabilities,
deferred outflows/inflows of resources, fund balances/net position, revenues, and expenditures. Fund
accounting segregates funds according to their intended purpose and it is used to aid management in
demonstrating compliance with finance -related legal and contractual provisions. The City maintains the
minimum number of funds consistent with legal and managerial requirements. The focus of
governmental fund financial statements is on major funds as that term is defined in professional
pronouncements. Each major fund is to be presented in a separate column, and non -major funds are
aggregated and presented in a single column. The City maintains fiduciary funds which are used to
account for assets held by the City in a trustee capacity. Since the governmental fund statements are
presented on a different measurement focus and basis of accounting than the government -wide
statements' governmental activities column, a reconciliation is presented which briefly explains the
adjustments necessary to transform the fund -level financial statements into the governmental activities
column of the government -wide presentation. The City reports the following major governmental funds:
General Fund — The General Fund is the general operating fund of the City. General tax revenues and
other receipts that are not allocated by law or contractual agreement to some other fund are accounted for
in this fund. General operating expenditures, and capital improvement costs not paid through other funds
are paid from this fund.
Other Capital Projects — This capital fund is used to account for and report on funds received from
various resources (primarily from current revenues, Federal and State Grants) designated for
construction projects.
Impact Fee — This capital fund is used to account for the collection of impact fees and the cost of capital
improvement projects for the type of improvement for which the impact fee was imposed.
Emergency Fund — This special revenue fund is used to account for grant expenditures and FEMA
reimbursements related to disasters. Additionally, this fund accounts for non -disaster related
reimbursable expenditures.
Additionally, the City reports the following fiduciary fund type:
Pension Trust Funds — The Pension Trust Funds account for the City of Miami Fire Fighters' and
Police Officers' Retirement Trust ("FIPO"), the City of Miami General Employees' and Sanitation
Employees' Retirement Trust ("GESE") and Other Managed Trusts (Members, Excess Plan, Staff Plan,
and Staff Excess Plan), and the Elected Officers' Retirement Trust (`BORT"). The Pension Trust Funds
accumulate resources for pension benefit payments to qualified employees.
55
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
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 and
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 items
are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
As a general rule, the effect of interfund activity has been eliminated from the government -wide
financial statements. Amounts reported as program revenues include 1) charges to customers or
applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3)
capital grants and contributions, including special assessments. Internally dedicated resources are
reported as general revenues rather than program revenues. Likewise, general revenues include all 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 as
they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current period. For
this purpose, the City considers revenues to be available if they are collected within 60 days of the end of
the fiscal period, except for grant revenues which are considered to be available if collected within one
year.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However,
debt service expenditures, as well as expenditures related to legal fees, compensated absences, insurable
claims, pollution remediation obligations, pension benefits and other post -employment benefits are
recorded only when payment is due or when City has made a decision to fund these obligations with
current available resources.
Certain revenues associated with the current fiscal period are considered measurable and are recognized
as revenues of the current fiscal period when available. These include:
• Property taxes
• Intergovernmental revenue
• Sales tax, franchise and utility taxes
• Charges for services, and
• Interest
All other revenue items are considered to be measurable only when cash is received by the City.
E. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance
Deposits and Investments
The City has defined "cash, cash equivalents and investments" to include cash on hand, demand
deposits, money market funds, debt securities, and cash with fiscal agents. Each fund's equity in the
City's investment pool is considered to be a cash equivalent since funds can be deposited or effectively
withdrawn at any time without prior notice or penalty. In addition, the City considers all highly liquid
investments with a maturity of three months or less when purchased, to be a cash equivalent.
56
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
All investments, including those of the Pension Trust Funds, are recorded at fair value, which is the price
that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The City and the Pension Trust Funds categorizes its fair
value measurements within the fair value hierarchy established by GASB 72. The hierarchy is based on
the valuation inputs to measure the fair value of the asset. Level 1 inputs are quoted prices in active
markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are
significant unobservable inputs. In addition, certain investments of the Pension Trust Funds are
measured at the net asset value ("NAV") per share (or its equivalent). See Note 2 for more detail
regarding methods used to measure the fair value of investments.
Interfund Receivables and Payables
Activity between funds that is representative of lending/borrowing arrangements outstanding at the end
of the fiscal year is referred to as "due to/from other funds".
Receivables
Receivables include amounts due from other governments and others for services provided by the City
and are recorded when the related revenue is earned. Allowances for uncollectible receivables are based
upon historical trends and the periodic aging of receivables. The City fully reserves for all receivables
greater than 60 days with the exception of grant receivables and other accounts that are in the collection
process, which are based on historical collection experience and other factors.
Prepaids
Prepaid items of both government -wide and governmental fund statements are recorded under the
consumption method. Prepaid expenses consist of certain costs which have been paid prior to the end of
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.
Long term service agreements, other than insurance policies, are expensed in the year of renewal. The
City uses the "Alternate Expense Recognition" method for long term service agreements covering one or
more fiscal period.
Inventory and Assets Held for Resale
There are no inventory values presented in the governmental funds. Purchases considered inventoriable
items are recorded as expenditures/expenses at the time of purchase since the year-end balances are not
material. The government -wide financial statements present inventory values of the City, which are
properties held by the Housing and Community Development Department for resale. Such balances are
recorded at lower of cost or net realizable value.
Restricted Assets
Certain proceeds from bonds, loans and deposits are classified as restricted assets because their use is
limited by applicable bond indentures, contracts, agreements, and other externally imposed constraints.
57
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure (e.g. roads, sidewalks,
drainage, and similar items), are reported in the governmental activities column in the government -wide
financial statements and fiduciary fund and discrete component unit financial statements. Capital assets
are defined by the City as assets with an initial cost of $1,000 or more and an estimated useful life in
excess of one year. Such assets are recorded at historical cost if purchased or constructed. Donated
capital assets are recorded at acquisition value on the date of the donation. Major outlays for capital
assets and improvements are capitalized as projects are constructed. The cost of normal maintenance
and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.
Property, plant, equipment, and infrastructure are depreciated using the straight-line method over the
following estimated useful lives:
Asset
Years
Buildings 20-50
Improvements 10-30
Machinery and equipment 3-15
Infrastructure 15-75
Compensated Absences
Under terms of Civil Service regulations, labor contracts and administrative policy, City employees are
granted vacation and sick leave in varying amounts. Additionally, certain overtime hours can be accrued
and carried forward as earned time off. Unused vacation and sick time is payable upon separation from
service, subject to various limitations depending upon the employee's seniority and civil service
classification. The City accrues a liability for compensated absences as well as certain other salary
related costs associated with the payment of compensated absences. The liability for such accumulated
leave is reflected in the government -wide financial statements as current and long-term liabilities. A
liability for these amounts is reported in the governmental funds only if they have matured, for example,
as a result of employee resignations and retirements. The fund -level liability for compensated absences
includes salary -related payments, paid sixty days subsequent to year end.
Deferred Outflows and Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of resources,
represents a consumption of net position that applies to a future period(s). The City has three items that
qualifies for reporting in this category. The first two items are deferred outflow of resource related to
pension benefits and other post -employment benefits (OPEB). Deferred outflows on pensions arise from
differences between projected and actual earnings on pension plan investments and are amortized to
pension expense using a systematic and rational method over a closed five-year period. Deferred
outflows on pensions and OPEB also include the difference between expected and actual experience
with regard to economic, or demographic factors. These are amortized over the average expected
remaining service lives of all employees that are provided with pensions and OPEB through each plan.
Employer contributions to pension and OPEB plans made subsequent to the measurement date are also
deferred and reduce net pension liability and total OPEB liability in the subsequent year. The third item
is a deferred charge on refunding, which is the difference between the carrying value of the refunded
58
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the
refunded or refunding debt.
In addition to liabilities, the statement of financial position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of resources,
represents an acquisition of net position that applies to a future period(s) and so will not be recognized as
an inflow of resources (revenue) until that time.
Amounts related to governmental fund receivables that are measureable, but not available (not received
within 60 days from fiscal year end), are recorded as unavailable (a deferred inflow of resources) in the
governmental fund financial statements. In addition, amounts received in advance, for which time
requirements are not met for revenue recognition are reported as a deferred inflow at both the fund level
and the government -wide level.
Deferred inflows on pensions are recorded when investment return on pension plan assets exceeds
actuarial assumptions and are amortized using a systematic and rational method over a closed five-year
period. Deferred inflows on pensions also include the difference between expected and actual experience
with regard to economic, or demographic factors; changes of assumptions about future economic,
demographic, or other factors. These are amortized over the average expected remaining service lives of
all employees that are provided with pensions through each pension plan. Deferred Inflow of Resources
related to OPEB arise from changes in actuarial assumptions. This amount is amortized over a period
equal to the average of the expected remaining service lives (in years) of all employees that are provided
with benefits through the OPEB plan.
Employee Benefit Plans and Net Pension Obligation - The City provides separate defined benefit
pension plans for general employees, sanitation employees and for uniformed police and fire department
personnel, as well as a defined contribution pension plan created in accordance with Internal Revenue
Code Section 401(a) primarily for directors and other unclassified administrator employees. The City
also offers an optional deferred compensation plan created in accordance with Internal Revenue Code
Section 457.
For the purposes of measuring the net pension liability, deferred outflows of resources and deferred
inflows of resources related to pensions, and pension expense, information about the fiduciary net
position of the City's defined benefit pension plans and additions to/deductions from the plans' fiduciary
net position have been determined on the same basis as they are reported by the plans. For this purpose,
benefit payments (including refunds of employee contributions) are recognized when due and payable in
accordance with the benefit terms and investments are reported at fair value.
Post -Employment Benefits Other Than Pensions (OPEB) - Pursuant to Section 112.0801, Florida
Statutes, the City is required to permit participation in the health insurance program by retirees and their
eligible dependents at a cost to the retiree that is no greater than the cost at which coverage is available
for active employees. Retired police officers are offered coverage at a discounted premium under the
FOP Health Trust that is administered separately from the City's health care plan. For non -police retirees
(fire fighters, general employees, sanitation employees and elected officials) and their dependents, the
City subsidizes health care coverage and life insurance at a premium equal to the blended group rate.
The City is financing the post employee benefits on a pay -as -you go basis. As determined by an
actuarial valuation, the City recorded the total OPEB liability in its government -wide financial
statements related to the implicit subsidy. The total OPEB liability is measured and reported in
59
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
accordance with the requirements of GASB 75, Accounting and Financial Reporting for Post -
employment Benefits Other than Pensions.
Unearned Revenues
Resources that do not meet revenue recognition requirements (not earned) are recorded as unearned
revenue in the government -wide and the governmental fund financial statements.
Unearned revenues in the government -wide and governmental funds financial statements at September
30, 2018 are as follows:
Source Balance
College of Policing - Lease Income $ 9,104,753
Skyrise Miami - Lease Income 9,104,531
Total $ 18,209,284
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. 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 debt
issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual
debt proceeds received and payment of debt principal, are reported as debt service expenditures.
Under GASB 49, Accounting and Financial Reporting for Pollution Remediation Obligations, a
pollution remediation is an obligation to address the current or potential detrimental effects of existing
pollution by participating in pollution remediation activities such as assessments and clean-ups.
Risk Management
Under the protection of the sovereign immunity limit, Florida Statutes 768.28 and Chapter 440, Florida
Statutes covering Workers' Compensation, the City has established a self-insured program to provide
coverage for almost all areas of liability including Workers' Compensation, General Liability,
Automotive Liability, Police Professional Liability, Public Officials' Liability, and Employment
Practices Liability. Section 768.28, Florida Statutes, provides for waiver of sovereign immunity in tort
actions or claims against the state and its agencies and subdivisions. The present limit 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.
60
CITY OF MUW, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Net Position
Equity in the government -wide statement of net position is displayed in three categories: 1) net
investment in capital assets, 2) restricted, and 3) unrestricted. Net investments in capital assets consists
of capital assets reduced by accumulated depreciation and by any outstanding debt incurred to acquire,
construct, or improve those assets, excluding unexpended proceeds. Deferred outflow and inflow of
resources that are attributable to acquisition of those assets or related debt are included in this component
of net position. Net position is reported as restricted when there are legal limitations imposed on its use
by State Statutes, City legislation or external restrictions by other governments, creditors, or grantors.
Unrestricted net position consists of all items that do not meet the definition of either of the other two
components. As of fiscal year end the City reported an unrestricted net deficit, which will require future
funding to eliminate this deficit amount.
When restricted resources are available for use, it is the City's policy to use restricted resources first as
they are needed. Similarly, within fund balance categories committed amounts are reduced first,
followed by assigned, and then by unassigned amounts when expenditures are incurred for purposes for
which amounts in any of these fund balance classifications could be used.
Fund Balance
Governmental Accounting Standards Board Statement No. 54, Fund Balance Reporting and
Governmental Fund Type Definitions, established the accounting and financial reporting standards for
government entities to report fund balance in classifications that comprise a hierarchy based primarily on
the extent to which the government is bound to honor constraints on the specific purposes for which
amounts in those funds can be spent. The following is a description of the classifications used by the
City.
Nonspendable Fund 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 as
stipulated by (a) external creditors, grantors, contributors, or laws or regulations of other governments or
(b) imposed by law through constitutional provisions or enabling legislation.
Committed Fund 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.
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.
61
CITY OF NIIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The following schedule classifies the City's fund balances as of fiscal year end September 30, 2018:
City of Miami, Florida
Fund Balance Classification
Major Governmental Funds
September 30, 2018
62
Major Funds
Non -Major
Total
Other Capital
Emergency
Governmental
Governmental
General
Projects
Impact Fee Services
Funds
Funds
FUND BALANCES
Non Spendable:
Recycling Trust Fund
$ -
$
S S
S 1,000,000
$ 1,0(10,000
Prepaid Items
2,154,528
26,537
2,181,065
2,154,528
1,026,537
3,181,065
Spendable:
Restricted for:
Debt Service (Required by Debt Covenants)
-
-
44,085,896
44,085,896
Physical Environment
-
-
- -
84,472
84,472
Water Sewer Combination
6,293,364
-
6,293,364-
,293,364Park
ParkProjects
10,057,062
4,153,218
14,210,280
Capital Improvements
9,819,081
88,450,116
1,520,713
99,789,910
Transportation and Transit
5,795,200
14,517,478
- -
40,800,295
61,112,973
Housing and Urban Development
-
-
- -
18,622,080
18,622,080
Public Safety
-
1,999,251
- -
7,344,853
9,344,104
Building
77,086,917
-
-
77,086,917
Other Facilities improvement
5,253,083
4,610,058
9,863,141
Community Redevelopment Agencies
-
55,393,801
55,393,801
Other
5.845,041
5,845,041
82,882 117
47,939 319
88 450,116
182,460,427
401,731,979
Committed to:
Housing and Urban Development
-
-
-
5,511,377
5,511,377
Capital Improvement
-
5.3I7,984
3,899.363
9,217,347
Transportation Projects
-
14,931,101
14.920,989
29,852,090
Public Safety
-
570,790
- -
3,602 985
4,173,775
Public Works
3,338,969
-
-
3,338,969
Physical Environment
3,188,600
-
-
3,188,600
Facilities improvement
7,141,893
- -
-
7,141,893
Parks Projects
11,696,294
- -
1,123,741
12,820,035
Emergency and Disaster Relief
-
14,350,885
-
-
14,350,885
Other
10.492.000
7,559.546
18,051,606
71,028.576
36,618.001
107,646,577
Assigned to:
Parks Projects
2,000,069
-
438,907
2,438,976
Planning Projects
-
-
59,938
59,938
Public Facilities Projects
12,010,154
-
12,010,154
Transportation Projects
-
7,618,85$
- -
-
7,618,855
Post -Retirement Benefits, Self-insurance Claims
and Oilier
38.015,621
-
-
-
38,015,621
Other
545,230
1,816,618
2,361,848
38,015,621
22,174,308
2,315,463
62,505.392
Unassigned:
Othcr(delicit)
64,411,285
- (17,474,235)
(32,774)
46,904,276
Total Fund Balance (deficit)
S 187,463,551
S 141,142,203
S 88,450.116 S (17,474,235)
S 222,387.654
S 621,969,289
62
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
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 2015, 2016, and
2017 were approximately $644.1 million. Based on this, the City is required to individually retain a
designated and unassigned fund balance of approximately $64.4 million each. The designated Fund
Balance may consists of amounts classified as either restricted, committed, or assigned and such
designation shall be based on the standard and guidance established, and amended from time to time, by
the Governmental Accounting Standards Board (GASB). As of September 30, 2018, the City has
approximately $123.0 million of fund balance which meets the above designated fund balance criteria,
and has reported also, an unassigned fund balance of $64.4 million as required in accordance with the
City's Financial Integrity Ordinance for a total Fund Balance of $187.5 million.
Use of Estimates
The preparation of the financial statements in conformity with accounting principles generally accepted
in the United States requires management to make estimates and assumptions that affect the 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/expenses during the reporting period. Actual results could differ from
estimates.
Excess of Expenditures over Appropriations
The following funds' actual expenditures exceeded appropriations for the year ended September 30,
2018:
Budgets are monitored at varying levels of classification detail; however, budgetary control is legally
maintained at the fund level except for the General Fund, which is maintained at the departmental level.
City departments will work closely with the Budget Department to minimize these instances in the
ensuing fiscal year.
63
Exceeds Budget
Fund
Authorization
General:
City Clerk
$ 28,705
Innovation and Technology Department
169,794
Capital Improvements and Transportation
75,043
Risk Management
6,977
Building
245,097
Planning
49,945
General Service Administration
510,396
Public Works and Sustainability
534,624
Parks Department
509,057
Special Revenue:
Midtown CRA
1,800
Debt Service:
CRA Other Special Obligation Bonds
5,432,176
Budgets are monitored at varying levels of classification detail; however, budgetary control is legally
maintained at the fund level except for the General Fund, which is maintained at the departmental level.
City departments will work closely with the Budget Department to minimize these instances in the
ensuing fiscal year.
63
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Fund Deficits
The following funds had fund balance deficits in the amounts indicated as of September 30,2018:
Fund Deficit
Special Revenue:
Emergency Special Revenue Fund $17,474,235
Homeless Services Special Revenue Fund 32,537
Public Facilities Special Revenue Fund 237
The fund deficit reported as of September 30, 2018, for the Emergency Services Special Revenue Fund
is attributed to expenditures exceeding grant reimbursement in the current fiscal year related to
Hurricane Irma. The City expects to receive grant reimbursements in the ensuing fiscal year to eliminate
the deficit fund balance.
New Accounting Pronouncements
The following new pronouncements effective for the year ending September 30, 2018 were adopted by
the City:
GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other
Than Pension (OPEB), the scope of this Statement addresses accounting and financial reporting for
OPEB that is provided to the employees of state and local governmental employers.
The Department of Off -Street Parking (the Authority) implemented GASB Statement No.75 effective
October 1, 2017. The Authority has a single -employer OPEB plan that offers post-retirement benefits to
eligible employees. GASB Statement No. 75 requires the employer to report the employer's total OPEB
liability and OPEB expense, along with the related deferred outflows and inflows of resources of the
OPEB plan.
The implementation of GASB Statement No.75 required the Authority to restate the net position and to
report the Authority's total OPEB liability and related deferred outflows of resources for the OPEB plan.
Beginning net position has been restated as follows:
Total net position - October 1, 2017, as reported $27,597,295
Restatement - GASB Statement No.75 Implementation (375,565)
Total net position - October 1, 2017, as restated $27,221,730
The implementation of GASB Statement No.75 resulted in the Authority recording deferred outflows of
resources of $27,754 and increasing the total OPEB liability from $122,928 to $526,247 as of October 1,
2017 due to the transitioning in the valuation methods under GASB Statement No.45 to GASB
Statement No. 75.
64
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The City also implemented GASB Statement No.75 effective October 1, 2017. The City has two separate
single -employer OPEB plans that offers post-retirement benefits to eligible retirees.
The implementation of GASB Statement No.75 required the City to restate the net position and to report
a total OPEB liability and related deferred outflows of resources for the OPEB plan.
Beginning net position has been restated as follows:
Total net position (deficit) - October 1, 2017, as reported
$(505,726,701)
Restatement - GASB Statement No.75 Implementation
(173,073,513)
Total net position (deficit) - October 1, 2017, as restated
$(678,800,214)
GASB Statement No. 81, Irrevocable Split -Interest Agreements, the objective of this Statement is to
improve accounting and financial reporting for irrevocable split -interest agreements by providing
recognition and measurement guidance for situations in which a government is a beneficiary of the
agreement. The adoption resulted in no financial impact to the City.
GASB Statement No. 82, Pension Issues an amendment of GASB Statements No. 67, No. 68, and
No. 73, this Statement addresses issues regarding (1) the presentation of payroll -related measures in
required supplementary information, (2) the selection of assumptions and the treatment of deviations
from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the
classification of payments made by employers to satisfy employee (plan member) contribution
requirements. The adoption resulted in no financial impact to the City.
GASB Statement No. 85, Omnibus 2017. The objective of this Statement is to address practice issues
that have been identified during implementation and application of certain GASB Statements. This
Statement addresses a variety of topics including issues related to blending component units, goodwill,
fair value measurement and application, and postemployment benefits (pensions and other
postemployment benefits [OPEB]). The adoption resulted in no financial impact to the City.
GASB issued Statement No. 86, Certain Debt Extinguishment Issues. The primary objective of this
Statement is to improve consistency in accounting and financial reporting for in -substance defeasance of
debt by providing guidance for transactions in which cash and other monetary assets acquired with only
existing resources; that is, resources other than the proceeds of refunding debt -are placed in an
irrevocable trust for the sole purpose of extinguishing debt. This Statement also improves accounting and
financial reporting for prepaid insurance on debt that is extinguished and notes to financial statements for
debt that is defeased in substance. The adoption resulted in no fmancial impact to the City.
65
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
NOTE 2. — DEPOSITS AND INVESTMENTS
Pooled Cash
The City (excluding the Pension Trust Funds and restricted cash balances) maintains a cash management
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, based
on the amount of time they are available for investing. A cash balance that is needed within a three
month period will receive the yield on a 3 month treasury bill as determined by the current bond market.
Deposits
Custodial Credit Risk — This is the risk in the event of a financial institution failure, the City's deposits
may not be recoverable. In addition to insurance provided by the Federal Deposit Insurance
Corporation, deposits are held in banking institutions approved by the State Treasurer of Florida to hold
public funds. The City's adopted policy is governed by Florida Statutes Chapter 280, Security 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 City Code authorizes the Director of Finance and/or a designee in his/her absence to purchase and
invest idle funds prudently in US Treasuries and obligations of agencies of the United States — provided
such are guaranteed by the United States or by the issuing agency; general obligations of states,
municipalities, school districts, or other political subdivisions; revenue and excise tax bonds of the
various municipalities of the State of Florida — provided none of such securities have been in default
within five years prior to date of purchase; negotiable certificates of deposit, bankers acceptance drafts,
money market investments, the State Board of Administration Investment Pool, and prime commercial
paper.
The State Board of Administration administers the Local Government Surplus Funds Trust Fund which
is governed by Ch. 19-7 of the Florida Administrative Code. These rules provide guidance and establish
the general operating procedures for the administration of the Local Government Surplus Funds Trust
Fund. Additionally, the State of Florida Office of the Auditor General performs the operational audit of
the activities and investments of the State Board of Administration. The Local Government Surplus
Funds Trust Fund is not a registrant with the Securities and Exchange Commission; however, the board
has adopted operating procedures consistent with the requirements for a 2a-7 fund. These investments
are valued using the pooled share price, which is based on amortized cost. The value of the position in
the external investment pool is the same as the value of the pool shares.
66
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
At September 30, 2018, 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
United States Treasury Notes
Federal Home Loan Mortgage Corporation
Federal Home Loan Bank
Corporate Notes
Supranational Notes
Commercial Paper
Money Market Fund
Total Investments
Bank Deposits
Total Pooled Cash, Cash Equivalents and Investments
Balance
$ 168,093,083
22,286,455
87,708,060
45,597,823
18,489,562
86,827,913
7,236,034
436,238,930
236,335,848
$ 672,574,778
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, 2018, $49.8 million of the total balance listed above relates to unspent bond and
lease proceeds restricted for capital projects. Unspent bond and lease proceeds by debt issue consisted of
the following:
Debt Issue
2009 Homeland Defense
2009 Streets & Sidewalks
2010B Marlins Garage Taxable
2014A-1 CRA SEOPW Tax Increment Rev
2014A-2 CRA SEOPW Tax Increment Rev
2018A CRA OMNI Tax Increment Rev
2018B CRA. OMNI Tax increment Rev
2017 Special Obligation Bond
Citywide Radio Equipment Lease
Total
Unspent Debt Proceeds
1,499,776
8,491,411
489,314
2,617,048
5,959,549
8,883,775
7,342,508
4,146,880
10,410,580
8 49,840,841
The City also has an additional $7.2 million of cash, cash equivalents, and investments restricted for debt
service payments.
Interest Rate Risk — Interest rate risk is the risk that changes in market rates will adversely affect the
fair value of an investment. Generally, the longer the maturity of an investment, the greater the
sensitivity of its fair value to changes in the market interest rates.
67
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The City's policy limits the maturity of an investment to a maximum of five years. As of September 30,
2018, 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 T 1)e Fair Value Maturity in Years
United States Treasury Notes
Federal Home Loan Mortgage Corporation
Federal Home Loan Bank.
Corporate Notes
Supranational Notes
Commercial Paper
Money Market Fund
Total
168,093,083
0.54
22,286,455
0.97
87,708,060
0.44
45,597,823
1.00
18,489,562
1.44
86,827,913
0.19
7,236,034 Less than 1 year
$ 436,238,930
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, 2018, the City owned callable securities with a fair value of $6.7
million.
The portfolio's overall weighted average duration was 0.56 years. The City's investment policy dictates
the overall weighted average duration of the City's portfolio shall be three (3) years or less at the time of
purchase. As of September 30, 2018, the City recorded an unrealized loss of approximately $0.72
million.
Credit Risk — Credit Risk is the risk that an issuer or other counterparty to an investment will not fulfill
its obligations. The City's investment policy (the Policy), minimizes credit risk by restricting authorized
investments to the highest ratings of at least one of the nationally recognized statistical rating
organizations (NRSROs). Commercial paper and bankers acceptances must have the highest letter and
numerical rating as provided for by at least one NRSRO. The credit ratings below were consistent
among the two major rating agencies (Standard & Poor's and Moody's). The table that follows
summarizes the investments by credit rating at September 30, 2018:
68
Standard & Poor
Moody's
Investment Type
Credit Rating
Credit Rating
Balance
Federal Home Loan Mortgage Corp.
AA+
Aaa $
22,286,455
Federal Home Loan Bank
AA+
Aaa
87,708,060
Corporate Notes
A-
A3
45,597,823
Commercial Paper
A-1
P-1
86,827,913
Supranational Notes
AAA
Aaa
18,489,562
Money Market Fund
AAAm
Aaa-mf
7,236,034
68
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Concentration of Credit Risk — The City's policy establishes limitations on portfolio composition by
investment type and by issuer to limit its exposure to concentration of credit risk
The City's investment policy allows investment in the following instruments:
69
Sector
Per Issuer
Sector
Maximum
Maximum
Minimum Ratings Requirement
U.S. Treasury
100%
100%
Not Applicable
GNMA
40%
Other U.S. Government
10%
Guaranteed (e.g. AID, GTC)
Federal Agency/GSE: FNMA,
75%
Not Applicable
FHLMC, FHLB, FFCB
Q
40 /o
Federal Agency/GSE other
10%
than those above
Supranationals where U.S. is a°
Highest ST or LT Rating Category (A -1/P-1, AAA-/Aaa3, or
shareholder and voting
25%
°
10%
equivalent)
member
Foreign Sovereign
Governments (OECD
5%
2%
Highest ST or Two Highest LT Rating Categories (A -1/P-1, AA -
countries only) and Canadian
/Aa3, or equivalent)
Provinces
Corporates
25%
5%
Highest ST or Two Highest LT Rating Categories (A-I/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
5%
40%
Not Applicable
Securities (MBS)
Asset -Backed Securities
5%
5%
Highest ST or LT Rating (A -1+/P-1, AAA/Aaa, or equivalent)
(ABS)
Non -Negotiable Collateralizedo
None, if fully
Bank Deposits or Savings
10%
collateralized
None, if fully collateralized.
Accounts
Commercial Paper (CP)
35%
5%
Highest ST Rating Category (A-I/P-1, or equivalent)
Counterparty (or if the counterparty is not rated by an NRSRO, then
Repurchase Agreements
20%
20%
the counterparty's parent) must be rated in the Highest ST Rating
(Repo or RP)
Category (A -1/P-1, or equivalent) If the counterparty is a Federal
Reserve Bank, no rating is required
Money Market Funds (MMFs)
25%
25%
Highest Fund Rating by all NRSROs that rate the fund (AAAm/Aaa-
mf, or equivalent)
Intergovernmental Pools
o
25 /0
°
25 /°
Highest Fund Quality and Volatility Rating Categories by all
(LGIPs)
NRSROs that rate the LGIP, (AAAm/AAAf, S1, or equivalent)
Florida Local Government
Highest Fund Rating by all NRSROs who rate the fund (AAAm/Aaa-
Surplus Funds Trust Funds (
u
25%
N/A
mf, or equivalent)
"Florida Prime" or "SBA")
69
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
As of September 30, 2018, the following issuers represent 5 percent or more of the City's investment
portfolio:
Issuer Percentage
United States Treasury Notes 39'/0
Federal Home Loan Bank (FHLB) 20%
Federal Home Loan Mortgage Corporation (FHLMC) 5%
Fair Value Measurements — The City categorizes its investments within the fair value hierarchy levels
established by GASB 72. The hierarchy is based on the valuation inputs used to measure the fair value of
the asset. Investments measured and reported at fair value are classified and disclosed in one of the
following categories. Level 1 inputs are investments traded in an active market with available quoted
prices for identical assets as of the reporting date. Level 2 inputs are inputs other than quoted prices
included in level 1 that are observable for an asset or liability, either directly or indirectly, as of the
reporting date. Level 3 inputs are investments not traded in an active market and for which no significant
observable market inputs are available as of the reporting date. All of the City's investments are
categorized as Level 2.
The following table summarizes the valuation of the City's investments in accordance with the above
mentioned fair value hierarchy levels as of September 30, 2018:
Investments by Level:
Debt Securities:
United States Treasury Notes
Federal Home Loan Mortgage Corp.
Federal Home Loan Bank
Corporate Notes
Supranational Notes
Commercial Paper
Money Market Fund
Fair Value
$ 168,093,083
22,286,455
87,708,060
45,597,823
18,489,562
86,827,913
7,236,034
Fair Value
Measurements
Using
Significant Other
Observable Inputs
(Level 2)
$ 168,093,083
22,286,455
87,708,060
45,597,823
18,489,562
86,827,913
7,236,034
Total Investments by fair value level $ 436,238,930 $ 436,238,930
70
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
City of Miami Firefighters and Police Officers Retirement Trust (FIPO)
FIPO's investment policy is determined by its Board of Trustees and has engaged outside investment
professionals to manage the assets of the Trust The policy has been identified by the Board as having
the greatest expected investment return, and the resulting positive impact on asset values, funded status
and benefits, without exceeding a prudent level of risk. The Trustees are authorized to acquire and retain
property, real, personal or mixed and investments specifically including, bonds, debentures and other
corporate obligations, and stocks, preferred or common.
Alternative investments of FIFO include private equity, private debt, venture capital and equity real
estate investments where no readily ascertainable market value exists. Management, in consultation with
the general partner and investment advisors, have determined the fair values for the individual
investments based upon net asset value per the partnership's or limited liability company's most recent
available financial information adjusted for cash flow activities through September 30,2018. Please refer
to Pension Note 10 for additional detail regarding FIFO.
FIPO has adopted the following asset allocation policy as of September 30,2018:
Asset Class
Core Fixed Income
Domestic Equity
International Equity
Real Estate
Absolute Return
Infrastructure
Private Equity
Target Allocation
29%
26%
17%
11%
11%
2%
4%
100%
Interest Rate Risk — Interest rate risk is the risk that changes in market interest rates will adversely
affect the fair value of an investment. Generally, the longer the maturity of an investment the greater the
sensitivity of its fair value to changes in market interest rates. As a means of limiting its exposure to
interest rate risk, FIFO diversifies its investments by security type and institution, and limits holdings in
any one type of investment with any one issuer with various durations of maturities.
71
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Information about the sensitivity of fair values of FIPO's investments to market interest rate fluctuations
is provided by the following table that shows the distribution of FIPO's investments by maturity at
September 30, 2018:
Credit Risk — Credit risk is the risk that a security or a portfolio will lose some or all of its value due to
a real or perceived change in the ability of the issuer to repay its debt. This risk is generally measured by
the assignment of a rating by a nationally recognized statistical rating organization. FIPO's investment
policy utilizes portfolio diversification in order to control this risk.
The following table discloses credit ratings, at September 30,2018:
Investment Type/ Rating Fair Value
U.S. Agencies $ 77,387,186
U.S. Treasuries 42,785,559
U.S. Government guaranteed* 120,172,745
Credit risk debt securities:
AAA
U.S
U.S
Corporate
AA
2,579,625
Treasuries
Agencies
Bonds
Total
A
14,109,867
Fair Value
$ 42,785,559 $
77,387,186 $
248,446,185 $
368,618,930
Investment Maturities:
BBB-
13,123,756
BB+ and Lower
712,250
Less than 1 Year
482,519
10
9,671,718
10,154,247
1 to 5 year
30,687,534
548,964
69,410,745
100,647,243
6 to 10 year
4,857,405
4,108,634
143,1.05,676
152,071,715
More than 10 Years
6,758,101
72,729,578
26,258,046
105,745,725
Credit Risk — Credit risk is the risk that a security or a portfolio will lose some or all of its value due to
a real or perceived change in the ability of the issuer to repay its debt. This risk is generally measured by
the assignment of a rating by a nationally recognized statistical rating organization. FIPO's investment
policy utilizes portfolio diversification in order to control this risk.
The following table discloses credit ratings, at September 30,2018:
Investment Type/ Rating Fair Value
U.S. Agencies $ 77,387,186
U.S. Treasuries 42,785,559
U.S. Government guaranteed* 120,172,745
Credit risk debt securities:
AAA
2,472,840
AA+
7,366,395
AA
2,579,625
AA-
6,032,533
A+
10,643,930
A
14,109,867
A-
26,509,745
BBB+
40,500,746
BBB
27,934,652
BBB-
13,123,756
BB+ and Lower
712,250
Not Rated
96,459,846
Total
248,446,185
Grand Total
$ 368,618,930
Percentage of
Portfolio
20.99%
11.61%
32.60%
0.67%
2.00%
0.70%
1.64%
2.89%
3.83%
7.19%
10.99%
7.58%
3.56%
0.19%
26.17%
67.40%
100.00%
*Obligations of the U.S. government or obligations explicitly or implicitly guaranteed by the U.S.
government are not considered to have credit risk and do not have purchase limitations.
72
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Custodial Credit Risk — This is the risk that in the event of the failure of the counterparty to a
transaction, the Plan will not be able to recover the value of its investments or collateral securities that
are in the possession of an outside party. Consistent with the Plan's investment policy, the investments
are held by the Plan's custodial bank and registered in the Plan's name. All of the FIPO deposits are
insured or collateralized by a financial institution separate from FIPO's depository financial institution.
Concentration of Credit Risk — The investment policy of FIPO contains limitations on the amount that
can be invested in any one issuer as well as maximum portfolio allocation percentages. There were no
individual investments that represent 5 percent or more of FIPO's fiduciary net position at September 30,
2018.
Foreign Currency Risk — Foreign currency risk is the risk that changes in exchange rates will adversely
affect the fair value of the investment or a deposit. FIPO may have exposure to foreign currency risk to
the extent its investments contain non -U.S. dollar denominated holdings in foreign countries. All asset
classes may hold non -U.S. securities, depending on portfolio guidelines. There is no requirement that
this exposure to foreign currency be hedged through forward currency contracts, although the investment
manager uses them in many cases
FIPO has an indirect exposure to foreign currency fluctuation as follows:
Holdings valued
in U.S. Dollars -
Currency
International Equities
Swiss Franc
$ 14,763,777
Australian Dollar
5,296,435
Brazilian Real
882,454
British Pound Sterling
32,251,918
Canadian Dollar
6,278,645
Danish Krone
629,421
Euro
57,629,121
Hong Kong Dollar
18,423,125
Indonesian Rupiah
221,885
Japanese Yen
31,708,430
Mexican Peso
1,387,007
Norwegian Krone
837,806
Singapore Dollar
4,717,967
South Korean Won
4,237,706
Swedish Krona
5,631,487
Taiwan Dollar
4,970,142
Other
3,717,660
Total
$ 193,584,986
73
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Securities Lending Transactions — A retirement system is authorized by state statutes and board of
trustees' policies to lend its investment securities. The lending is managed by FIPO's custodial bank.
All loans can be terminated on demand by either FIPO or the borrowers. The average term of loans
outstanding at September 30, 2018, is approximately 67 days. The custodial bank and its affiliates are
prohibited from borrowing FIPO's securities.
The agent lends FIPO's U.S. government and agency securities and domestic corporate fixed-income
and equity securities for securities or cash collateral of 102 percent of the value of the securities plus any
accrued interest and international securities of 105 percent of the market value of the securities plus any
accrued interest. The securities lending contracts do not allow FIPO to pledge or sell any collateral
securities unless the borrower defaults. Cash collateral is invested in the agent's collateral investment
pool, whose share values are based on the amortized cost of the pool's investments. Investments are
restricted to issuers with a credit rating A3 or A- or higher by Moody's or Standard & Poor's. At year-
end, the pool has a weighted average term to maturity of 30 days, respectively. The relationship between
the maturities of the investment pool and FIPO's loans is affected by the maturities of the securities'
loans made by other entities that use the agent's pool, which FIPO cannot determine. There are policy
restrictions by the custodial bank that limits the amount of securities that can be lent at one time or to one
borrower.
The following represents the balances relating to securities lending transactions at September 30, 2018:
Fair Value of Cash Collateral Cash Collateral
Underlying Received/Securities Investment
Securities Lent: Securities Collateral Value Value
Lent for cash collateral:
U.S. Government and Agency Obligations $
28,963,383 $
29,586,357 $
29,586,358
International Equities
1,589,186
1,677,025
1,677,025
Domestic Corporate Stocks
85,440,031
87,610,361
87,610,361
Domestic Corporate Bonds
24,212,495
24,847,191
24,847,191
Total $
140,205,095 $
143,720,934 $
143,720,935
The contract with FIPO's custodian requires the custodian to indemnify FIPO if the borrower fails to
return the securities, due to the insolvency of a borrower, and the custodian has failed to live up to its
contractual responsibilities relating to the lending of those securities. At year-end, FIFO has no credit
risk exposure to borrowers because the amounts of collateral held by FIPO exceed the amounts the
borrowers owe FIFO. There are no significant violations of legal or contractual provisions, no borrowers
or lending agent default losses, and no recoveries of prior period losses during the year. There is no
income distributions owing on securities lent.
74
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The following table details FIPO investments as of September 30, 2018:
Amount
Investments, at fair value:
Debt Securities (Domestic):
U.S. Treasuries 42,785,559
U.S. Agencies 77,387,186
U.S. Government Obligations 120,172,745
Corporate Bonds:
Corporate Bonds 115,780,448
Asset Backed Securities 8,375,154
Mortgage Backed Securities 2,046,115
Guaranteed Fixed Income 91,830,963
Debt Securities (International):
International Government Bonds 2,913,325
International Corporate Bonds 27,500,180
Corporate Bonds 248,446,185
Corporate Stocks
478,187,607
International Equity
258,016,522
Mutual Funds
-
Real Estate
179,279,484
Private Equity
156,839,046
Absolute Return Funds
75,013,697
Total Investments
$ 1,515,955,286
Fair Value Measurements — The FIPO Trust categorizes its investments within the fair value hierarchy
established by GASB 72.
The Trust has established a framework to consistently measure the fair value of the Trust's assets and
liabilities in accordance with applicable accounting, legal, and regulatory guidance. This framework has
been provided by establishing valuation policy and procedures that will provide reasonable assurance
that assets and liabilities are carried at fair value. In certain cases, the inputs used to measure fair value
may fall into different levels of the fair value hierarchy. In such cases, an investment's level within the
fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.
The Trust's assessment of the significance of a particular input to the fair value measurement requires
judgment and considers factors specific to the investment.
75
CITY OF NIIANII, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The following table summarizes the valuation of the FIPO Trust's investments in accordance with the
GASB 72 fair value hierarchy levels as of September 30, 2018:
Investments by level:
Debt Securities:
Government and Agency Obligations
Municipal/Provincial Obligations
Asset Backed Securities
Mortgage Backed Securities
Corporate Bonds
Mutual Fund Investment
Total Debt Securities
Equity Securities:
Domestic Equities
International Equities
Total Equity Securities
Alternative Investments:
Private Equity
Real Estate Equity
Total Alternative Investments
Total Investments by fair value level
Investments Measured at The Net Asset Value (NAV)
Commingled Domestic Fixed Income Funds
Commingled International Equity Funds
Commingled Domestic Equity Funds
Absolute Return Funds
DROP Trust Investment, at contract value
Total Investments measured at the NAV
Total Investments
78,402,852
28,761,868
171,857,331
75,013,697
26.264.409
�t:v�vuwti��
t,a iu,syo,is i
Debt Securities - Debt securities consist primarily of negotiable obligations of the U.S. government and
U.S. government-sponsored agencies, corporations, securitized offerings backed by residential and
commercial mortgages, and foreign debt securities. These securities can typically be valued using the
close or last traded price on a specific date (quoted prices in active markets). When quoted prices are not
available, fair value is determined based on valuation models that use inputs that include market
observable inputs. These inputs included recent trades, yields, price quotes, cash flows, maturity, credit
ratings, and other assumptions based upon the specifics of the investment's type.
76
Fair Value Measurements Using
Quoted Prices
in Actives
Significant
Markets for
Other
Significant
Identical
Observable
Unobservable
Assets
Inputs
Inputs
Balance
(Level 1)
(Level 2)
(Level 3)
$ 44,979,035
$ _
$ 44,979,035
$ _
78,107,035
-
$78,107,035
-
8,375,154
-
$8,375,154
-
2,046,115
-
$2,046,115
-
143,280,628
-
$143,280,628
-
128,176,441
128,176,441
-
-
13,428,111
-
13,428,111
-
418,392,519
128,176,441
290,216,078
306,328,977
306,328,977
-
-
229,255,954
229,255,954
-
-
535,584,931
535,584,931
-
-
156,839,046
-
-
156,839,046
179,279484
-
-
179,279,484
336,118,530
-
-
336,118,530
1,290,095,980
$ 663,761,372
$ 290,216,078
$ 336,118,530
78,402,852
28,761,868
171,857,331
75,013,697
26.264.409
�t:v�vuwti��
t,a iu,syo,is i
Debt Securities - Debt securities consist primarily of negotiable obligations of the U.S. government and
U.S. government-sponsored agencies, corporations, securitized offerings backed by residential and
commercial mortgages, and foreign debt securities. These securities can typically be valued using the
close or last traded price on a specific date (quoted prices in active markets). When quoted prices are not
available, fair value is determined based on valuation models that use inputs that include market
observable inputs. These inputs included recent trades, yields, price quotes, cash flows, maturity, credit
ratings, and other assumptions based upon the specifics of the investment's type.
76
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Equity Securities - These include domestic and international equities. Domestic securities traded on a
national securities exchange are valued at the last reported sales price on the last business day of the
fiscal year. Securities traded in the over -the counter market and listed securities for which no sale was
reported on that date are valued at the last reported bid price. International equities are valued based
upon quoted foreign market prices and translated into U.S. dollars at the exchange rate in effect at
September 30, 2018. Securities which are not traded on a national security exchange are valued by the
respective fund manager or other third parties based on yields currently available on comparable
securities of issuers with similar credit ratings.
Alternative Investments - These investments include private equity and real estate equity investments
where no readily ascertainable market value exists. To value these investments, management, in
consultation with the general partner and investment advisors, determines the fair values for the
individual investments based upon the partnership's or limited liability company's most recent available
financial information adjusted for cash flow activities through September 30, 2018. The estimated fair
value of these investments may differ from values that would been used had a ready market existed.
The following table displays information regarding the FIPO Trust's investments that use net asset value
(NAV) per share (or equivalent) to value investments.
Investment Type
Commingled Domestic Fixed Income Funds
Absolute Return Funds
Commingled International Equity Funds
Commingled Domestic Equity Funds
Mutual Funds
Total Investments Measured at the NAV
Redemption Redemption
Balance Frequency Notice Period
Daily
$ 78,402,852
75,013,697
28,761,868
171,857,894
26,264,409
$ 380,300,720
Quarterly
Daily
Daily
Daily
Same day
30 Days
Same day
Same day
Same day
• Commingled domestic fixed income funds consist of two commingled investment vehicle which
primarily invests in publicly traded domestic commercial mortgage backed securities. The
investment is valued at the net asset value of units held at the end of the period based upon the
fair value of the underlying investments.
Absolute return funds aim to provide positive investment returns in all market conditions over the
medium to long-term. The funds are actively managed, with a wide investment remit to target a
level of return over rolling three-year periods equivalent to cash plus five percent a year, gross of
fees. They exploit market inefficiencies through active allocation to a diverse range of market
positions. The funds use a combination of traditional assets (such as equities and bonds) and
investment strategies based on advanced derivative techniques, resulting in a highly diversified
portfolio. The funds can take long and short positions in markets, securities and groups of
securities through derivative contracts.
• Commingled international equity funds consist of a commingled investment vehicles which invest
primarily in publicly traded global equity securities. The funds are valued at the net asset value
of units held at the end of the period based upon the fair value of the underlying investments.
77
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
• Commingled domestic equity funds consist of three comingled investment vehicle which invests
primarily in publicly traded equity securities. The funds are valued at the net asset value of units
held at the end of the period based upon the fair value of the underlying investments.
• Mutual funds are open-end mutual funds that are registered with the Securities and Exchange
Commission. These funds are required to publish their daily NAV and to transact at that price.
They are determined to be actively traded.
GESE Pension Trust Funds
Investments for the City of Miami Employees and Sanitation Employees Retirement Trust (GESE Trust)
and the City of Miami General Employees and Sanitation Employees Retirement Trust Staff Pension
Plan (Staff Trust), as of September 30, 2018, are as follows:
Investment Type
U.S.Government and Agency Securities
Corporate Stocks
Corporate Bonds
Money Market Funds and Commercial Paper
Total Investments
Balance
GESE Staff
Trust Trust
$ 107,958,385 $ -
499,478,556 3,164,224
68,574,982 1,016,069
676,011,923 4,180,293
25,319,528
$ 701,331,451 $ 4,180,293
Fair Value Measurements — The GESE Trust and Staff Trust categorizes its investments in accordance
with the fair value hierarchy established by GASB 72.
78
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The following table summarizes the valuation of the GESE Trust and Staff Trust investments in
accordance with the GASB 72 fair value hierarchy levels as of September 30, 2018:
Investments by level
Debt Securities:
US Government and Agency Securities
Corporate Bonds
Mortgage Bonds
Total Debt Securities
Equity Securities:
Corporate Stocks
Real Estate Equity
Total Equity Securities
Total Investments by fair value level
Investments Measured at The Net Asset
Value (NAV)
International Equities Commingled
Domestic Commingled Funds
Money Market Funds
(Staff)
Total Investments measured at the NAV
Total Investments Measured at Fair Value
59,582,376 -
146,670,422 -
25,319,528 -
- 4,180,293
231,572,326 4,180,293
$701,331,450 $ 4,180,293
Debt Securities - Debt securities consist primarily of negotiable obligations of the U.S. government and
U.S. government-sponsored agencies, corporations, securitized offerings backed by residential and
commercial mortgages, TIPS and foreign debt securities. These securities can typically be valued using the
close or last traded price on a specific date (quoted prices in active markets). When quoted prices are not
available, fair value is determined based on valuation models that use inputs that include market observable
inputs. These inputs include recent trades, yields, price quotes, cash flows, maturity, credit ratings, and
other assumptions based upon the specifics of the investment's type.
Equity Securities - These include domestic and international equities. Domestic securities traded on a
national securities exchange are valued at the last reported sales price on the last business day of the fiscal
year. Securities traded in the over -the counter market and listed securities for which no sale was reported
on that date are valued at the last reported bid price. International equities are valued based upon quoted
foreign market prices and translated into U.S. dollars at the exchange rate in effect at September 30, 2018.
Securities which are not traded on a national security exchange are valued by the respective fund manager
or other third parties based on yields currently available on comparable securities of issuers with similar
credit ratings.
79
Fair Value Measurements
Using
Quoted
Prices in
Actives
Significant
Markets for
Other
Identical
Observable
GESE Trust
Staff Plan Assets
Inputs
Balance
Balance (Level 1)
(Level 2)
$ 68,975,995
$ - $ 38,099,245
$ 30,876,750
68,574,982
- 8,231,522
60,343,460
38,982,389
- 6,173,347
32,809,042
176,533,366
- 52,504,114
124,029,252
293,225,758
- 293,225,758
-
293,225,758
- 293,225,758
-
469,759,124
- $345,729,872
$124,029,252
59,582,376 -
146,670,422 -
25,319,528 -
- 4,180,293
231,572,326 4,180,293
$701,331,450 $ 4,180,293
Debt Securities - Debt securities consist primarily of negotiable obligations of the U.S. government and
U.S. government-sponsored agencies, corporations, securitized offerings backed by residential and
commercial mortgages, TIPS and foreign debt securities. These securities can typically be valued using the
close or last traded price on a specific date (quoted prices in active markets). When quoted prices are not
available, fair value is determined based on valuation models that use inputs that include market observable
inputs. These inputs include recent trades, yields, price quotes, cash flows, maturity, credit ratings, and
other assumptions based upon the specifics of the investment's type.
Equity Securities - These include domestic and international equities. Domestic securities traded on a
national securities exchange are valued at the last reported sales price on the last business day of the fiscal
year. Securities traded in the over -the counter market and listed securities for which no sale was reported
on that date are valued at the last reported bid price. International equities are valued based upon quoted
foreign market prices and translated into U.S. dollars at the exchange rate in effect at September 30, 2018.
Securities which are not traded on a national security exchange are valued by the respective fund manager
or other third parties based on yields currently available on comparable securities of issuers with similar
credit ratings.
79
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The following table displays information regarding the GESE Trust and Staff Trust investments that use
Net Asset Value (NAV) per share (or equivalent) as their fair value measurement:
Investment Type
International Equities Commingled
Domestic Commingled Funds SSGA
Money Market Funds
Staff- (Vanguard)
Total Investment Measured at the NAV
GESS Trust
Balance
$ 59,582,376
146,670,422
25,319,528
4,180,293
$ 235,752,619
Redemption
Freauencv
Monthly
Daily
Daily
Daily
The investment policy, approved by the Board of Trustees for the GESE Trust, stipulates the permissible
investments and the allowable long-range asset allocation, measured at market value at the end of each
quarter. The investment objectives are to achieve rates of return that equal or exceed actuarial interest
rate, and performance results that rank in the top half of the investment consultants universal database,
over a rolling three-year period, without undue risk. Compliance with the investment policy is monitored
by the GESE Trust's investment consultant. The Board of Trustees for the GESE Trust has engaged
outside investment professionals to manage the assets of the GESE Trust. The GESE Trusts are
potentially exposed to various types of investment risk including credit risk, custodial credit risk,
concentration of credit risk, interest rate risk, and foreign currency risk. Please refer to Pension Note 10
for additional detail regarding GESE Trust.
The GESE Trust has adopted the following asset allocation policy as of September 30,2018:
Asset Class
U.S Large Cap Equity
U.S Small Cap Equity
International Equity
US Fixed Income
Real Estate
Cash and Other
80
Target Allocation
48%
9%
10%
30%
0%
3%
100%
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Interest Rate Risk — The GESE Trust limits the maturities of investments to control this risk. The GESE
Trust investment policy requires that the average maturity of the fixed-income asset class be targeted
within a range of three to ten years. In addition, each manager is expected to keep its maturity at +/- one
year of the benchmark duration. The GESE Trust utilizes duration to manage its risk to changes in
interest rates.
The following represents investment value and weighted average maturity of the GESE Trust
investments at September 30, 2018:
Investment Tete
Other Government
Asset - Backed
Corporate Bonds - Bank
Corporate Bonds - Finance
Corporate Bonds - Industrial
Corporate Bonds - Transportation
Corporate Bonds - Electric Utility
US Treasury Bonds
US Treasury Notes
US Agency
Yankee - Finance
Yankee - Industrial
Mortgages
Foreign Bonds
Total
Fair value
$ 351,000
2,503,000
15,350,000
14,996,000
26,974,000
1,515,000
1,747,000
11,738,000
57,639,000
4,260,000
1,021,000
1,906,000
37,963,000
810,000
$ 178,773,000
Weighted Avg.
Maturity Years
11.94
1.32
1.84
3.68
5.86
5.90
8.95
17.11
4.96
0.14
3.12
6.89
20.96
Credit Risk — The GESE Trust utilizes portfolio diversification as well as limiting investments to the
highest rated securities as rated by nationally recognized rating agencies. The GESE Trust's Investment
Policy limits credit risk by requiring fixed-income securities to be rated by Moody's as a Baa3/BBB- or
better. However, a maximum of 20 percent of each manager's portfolio may be invested in high yield
securities rated by Moody's/S&P as Caa/CCC or better.
81
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
At September 30, 2018, the following table displays Moody's ratings and the fair value of GESE Trust's
fixed-income portfolio investments:
Investment Type/Rating
Fair Value
US Treasury*
$ 69,379,000
US Agency*
4,260,000
Other Government**
351,000
Asset -Backed"
2,503,000
Mortgages**
37,962,000
Aaa
496,000
Aa
3,318,000
A
36,813,000
Baa
21,447,000
Ba
976,000
B
325,000
Not Rated
133,000
Cash
810,000
Total
$ 178,773,000
* Implied AAA rating
** There is no rating classification for these investments
Custodial Credit Risk —This is the risk that in the event of the failure of the counterparty, the GESE
Trust will not be able to recover the value of its investments that are in the possession of an outside
party. The GESE Trust utilizes an independent custodial safekeeping agent for its investments. The
GESE Trust's custodial credit is limited because its investments are registered in the name of the plan.
Concentration of Credit Risk — The GESE Trust utilizes limitations on securities of a single issuer or
industry to manage this risk. The GESE Trust investment policy requires that corporate bond issues
must be diversified by industry and in number so that no investment in the securities of a single issue
shall exceed 7 percent (at market) of the value of the portfolio. Single industry weightings will be a
maximum of 25 percent, except U.S. government and agency securities. Investments issued or explicitly
guaranteed by the U.S. Government and investments in mutual funds, external investment pools and
other pooled investments are not subject to concentration of credit risk. At September 30, 2018, the
GESE Trust did not have any corporate bond investments with issuers greater than 5 percent.
Foreign Currency Risk — The GESE Trust Investment policy allows a maximum of 20 percent of each
manager's portfolio to be invested in aggregate to Yankee bonds, foreign credits, Eurodollar bonds, and
Rule 144A securities. At September 30, 2018, the GESE Trust did not have any foreign denominated
fixed income investments.
82
CITY OF M AMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Staff Trust
The investment policy for the Staff Trust was determined by the Board of Trustees and is monitored by
the Staff Trust's investment consultant. The policy stipulates the permissible investments, and the
allowable long-range asset allocation, measured at market value, at the end of each quarter. The
investment objectives are to achieve rates of return that equal or exceed actuarial interest assumption
rate, and performance results that rank in the top half of the investment consultants universe database,
over a rolling three-year period, without undue risk. The Board of Trustees has engaged outside
investment professionals to manage the assets for the Staff Trust.
The Staff Trust has adopted the following asset allocation policy as of September 30,2018:
Asset Class
US Large Cap Equity
U.S Small Cap Equity
International Equity
U.S Fixed Income
Cash and Other
Target Allocation
48%
9%
10%
30%
3%
100%
Interest Rate Risk — The Staff Trust limits the maturities of investments to control this risk. The Staff
Trust investment policy requires that the average duration of the fixed-income asset class be targeted
within a range of three to ten years. In addition, the manager is expected to keep its duration at +/- one
year of the benchmark duration. The effective duration of held passive mutual funds is 6.1 years.
Credit Risk — The Staff Plan utilizes portfolio diversification in order to limit this risk as well as
limiting investments to the highest rated securities as rated by nationally recognized rating agencies. The
Staff Plan Investment Policy limits credit risk by requiring all fixed income securities to be rated by
Moody's/S&P as a Baa3BBB- or better.
The Board of Trustees for the GESE Trust has elected to hire outside investment professionals to manage
the assets for the Staff Trust. As of September 30, 2018, the fixed income assets of the Staff Trust were
invested in a mutual fund managed passively by Vanguard.
The value of the fixed income portfolio was approximately $1,019,800. Vanguard manages the assets in
accordance with the investment policy statement approved by the trustees.
83
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The table below summarizes Staff Trust investments by credit rating at September 30, 2018:
Investment Type/Rating
Fair Value
Government*
$ 678,200
Aaa
18,400
Aa
46,900
A
120,300
Baa
156,000
Total
$ 1,019,800
* Implied AAA rating
Custodial Credit Risk — This is the risk that in the event of the failure of the counterparty, the plan will
not be able to recover the value of its investments or collateral securities that are in the possession of an
outside party. The Staff Trust utilizes an independent custodial safekeeping agent for its investments.
Custodial credit risk is limited since its investments are held in independent custodial safekeeping
accounts, external investment pools, and/or open-end mutual funds are registered in the Plan's name. All
cash in each money manager's portfolio is swept into a money market mutual fund on a daily basis.
Concentration of Credit Risk — The Staff Trust utilizes limitations on securities of a single issuer or
industry to manage this risk. Investments issued or explicitly guaranteed by the U.S. government and
investments in mutual funds, external investment pools and other pooled investments are excluded from
this requirement. The Staff Trust investment policy requires that corporate bond issues must be
diversified by industry and in number so that no investment in the securities of a single issue shall
exceed 20 percent (at market) of the value of the portfolio. Single industry weightings will be a
maximum of 20 percent, except U.S. government and agency securities. As of September 30, 2018, the
Staff Trust did not have any positions with issuers greater than 5 percent.
Foreign Currency Risk — The Staff Trust Investment policy prohibits investments in foreign currency
denominated securities and is therefore not exposed to foreign currency risk.
Elected Officer's Retirement Trust (EORT)
The EORT Trust follows the City's investment policy. As September 30, 2018, the investments of
EORT are as follows:
Investment Type
U.S. Treasuries
Federal National Mortgage Association
Federal Home Loan Bank
Money Market Fund
Total
84
Fair Value
$ 2,490,225
1,993,940
1,997,340
721,637
$ 7,203,142
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The EORT has the following target asset allocation as of September 30,2018:
Asset Class
U.S Fixed Income
Target Allocation
80%
Cash 20%
100%
Interest Rate Risk — Interest rate risk is the risk that as market rate changes the fair value of an
investment will vary. Generally, the longer the maturity of an investment, the greater the sensitivity of its
fair value to changes in the market interest rate. The City's investment policy limits the maturity of an
investment to a maximum of 5 years. As of September 30, 2018, EORT had the following investments
with the respective weighted average maturity in years.
The respective weighted average maturities were based on the securities call date, not the maturity date.
Weighted Average
Investment Type Maturity In Years
United States Treasury Notes 0.33
Federal National Mortgage Association 0.33
Federal Home Loan Bank 0.33
Money Market Funds Less than 1 year
The investments at September 30, 2018, were in compliance with the City's investment policy at the
time of purchase.
Credit Risk — The Plan's investment policy minimizes credit risk by restricting authorized investments
to the highest ratings of at least one of the nationally recognized statistical rating organizations
(NRSROs). Investments in the State Board of Administration, The Local Government Surplus Funds
Trust Fund, do not have a rating from the NRSRO. Commercial paper and bankers acceptances must
have the highest letter and numerical rating as provided for by at least one NRSRO. At September 30,
2018, all of the Plan's investments were held in Government Agencies and Money Market Funds.
Money Market Funds are authorized by the City's investment policy, but are not rated by the major
rating agencies.
Custodial Credit Risk — This is the risk that in the event of the failure of the counterparty, the Plan will
not be able to recover the value of its investments or collateral securities that are in the possession of an
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
85
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
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, 2018, the EORT Trust did not have any positions with
issuers greater than 5 percent.
Fair Value Measurements — The EORT categorizes its investments within the fair value hierarchy
established by GASB 72.
The following table summarizes the valuation of the EORT's investments in accordance with GASB 72
fair value hierarchy levels as of September 30, 2018:
Investments by level:
Debt Securities:
Federal Home Loan Bank
Money Market Fund
United States Treasury Notes
Federal National Mortgage Association
Total Investments by fair value level
86
Fair Value
$ 1,997,340
721,637
2,490,225
1,993,940
$ 7,203,142
Fair Value
Measurements Usin
Significant Other
Observable Inputs
(Level 2)
$ 1,997,340
721,637
2,490,225
1,993,940
$ 7,203,142
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
NOTE 3. — RECEIVABLES
Receivables at year-end for the City in individual major and non -major funds in the aggregate, including
the applicable allowance for uncollectible accounts are as follows:
Other Capital Emergency Non -Major
Receivables General Projects impact Fee Services Govt Funds Total
Accounts $ 49,357,692 $ 2,099,650 $ 252,033 $ - $ 5,633,928 $ 57,343,303
Property Tax 2,664,532 -
Due From Other Governments 6,912,043 16,103,469
216,844 2,881,376
6,444,780 13,857,236 43,317,528
Loans Receivable
- - - - 13,823,713
13,823,713
Gross Receivables
58,934,267 18,203,119 252,033 6,444,780 33,531.721
117,365,920
:Less: Allowance for
Uncollectibles
(18,654,834) (2,098,050) (252,033) - (15,561,177)
(36,566,094)
:Net Total Receivables
$ 40,279,433 $ 16,105,069 $ - $ 6,444,780 $ 17,970,544
$ 80,799,826
The City, the County, 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 Project.
On November 17, 2011, the City, Miami -Dade County, and the U.S. Department of Housing and Urban
Development ("HUD") amended their May 13, 2001 Assumption of Loan Guarantee Assistance
Liability and Pledge Agreement in order to refinance the Parrot Jungle Project HUD Section 108 Loan
under a new note at a lesser interest rate for the then outstanding principal amount of $15.6 million. The
refinancing under the new note remained in accordance with the pro -rata payment obligations under a
continuing agreement for the Parrot Jungle Project HUD Section 108 Loan, whereby the City's pro -rata
payment obligations remain 80 percent and the County's pro -rata payment obligations remain 20
percent.
The City and the County have multiple continuing agreements, which have been amended over time with
Parrot Jungle and Gardens of Watson Island, Inc. and its various related entities (now known collectively
as "Jungle Island"), regarding, inter alia, (1) the borrowing by Jungle Island of the Parrot Jungle Project
HUD Section 108 Loan proceeds from the County and the City, (2) the leasing by Jungle Island of City -
owned property for the construction of the Project, (3) City and County payments to HUD for the Parrot
Jungle Project HUD Section 108 Loan due to Jungle Island's inability to pay during construction and
start-up of the Project, and (4) another loan from the City to Jungle Island of $800,000 for the payment
of ad valorem taxes on the Jungle Island property to the County. At this time, Parrot Jungle's payment
obligations to the City are as follows:
1. Parrot Jungle Project HUD Section 108 Loan Deferred Payments will begin August 1, 2019 to
repay the City's approximately $13.8 million. The City has recorded an allowance for the full
amount of this receivable.
2. Regular Lease Rent Payments began April 1, 2013, whereby Jungle Island will pay the rent
based upon a "Gross Revenues" monthly calculation. As of September 30, 2018, rental payment
to the City are current.
87
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
3. Deferred Lease Rent Payments due from Jungle Island to the City based upon a minimum
rent/percentage rent calculation formula. The deferred rent amounts to $1.6 million and any
percentage rent due. Jungle Island shall pay to the City the deferred rent on or before December
31, 2020. Given the uncertainty of the collections related to this amount, it is not recognized in
the City's financial statements.
Single -Family Homeownership and Rehabilitation Programs
Single-family home rehabilitation and homeownership programs funded under the Community
Development Block Grant (CDBG), HOME Investment Partnership Loan Program (HOME), American
Dream Down Payment Initiative (ADDI), State Housing Initiative Partnership Program (SHIP) and
Affordable Housing Trust Fund, generally are repaid when the related properties are transferred or sold.
If the property is transferred or sold before the end 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 the
loan and interest. Given the nature of these loans, collection is not assured, consequently they are not
recognized in the City's financial statements.
A summary of single-family, deferred long-term loans that are not recognized in the City's financial
statements, as of September 30, 2018, are as follows:
Program Loans Outstanding Amount
CDBG 52 loans S 2,092,224
HOME 552 loans 25,335,813
SHIP 309 loans 15,610,723
Other 35 loans 1,793,602
Total 948 loans S 44,832,362
Multi -Family Rental Loans
As of September 30, 2018, there are 103 projects aggregating to $82.3 million for new construction or
rehabilitation of multi -family units, which under the terms of the loan agreement are to be repaid if
program conditions are not met. Home ownership unit loans are usually forgiven to the developer and
transferred to the home buyer. The home buyer loans are usually amortizable or deferred during the life
of the affordability period. Such loans will be forgiven and become grants if the homeowners remain in
their homes during the full term of the loan. Given the nature of these loans, collections are not assured,
consequently they are not recognized in the City's financial statements.
88
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Economic Development Commercial Loans
As of September 30, 2018, there are 9 loans aggregating to $7.5 million for special economic
development projects under the CDBG program. Those projects are collateralized by placing a mortgage
against the property of the business or non-profit entity's assets to ensure repayment of the loan and
interest to the City. Some of these loans are written with no interest payment or deferred payments and
are forgivable, if all program conditions are met. Given the nature of these loans, collection is not
assured, consequently they are not recognized in the City's financial statements.
NOTE 4. — PROPERTY TAXES
Property taxes are assessed according to the value determined by the Miami -Dade County Property
Appraiser on January 1 sc of each year and are due, with discounts of one to four percent allowed if paid
prior to March 1' of the following calendar year. In accordance with Florida Statute 197.122, taxes
become an enforceable lien on the assessed property at this time. 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 discounts varying
between 2 percent and 4 percent. All unpaid taxes on real and personal property become delinquent on
April 1 S` and bear interest at 18 percent until a tax sale certificate is sold at auction. The County bills and
collects all property taxes for the City, and sells tax certificates for delinquent taxes.
The assessed value of property, as established by the Miami -Dade County Property Appraiser, at January
1, 2017, upon which the 2017-2018 levy was based, was $53.4 billion. The City is permitted by Article
7, Section 8 of the Florida Constitution to levy taxes up to ten dollars per $1,000 of assessed valuation
for general governmental services other than the payment of principal and interest on general obligation
long-term debt. In addition, unlimited amounts may be levied for the payment of principal and interest
on general obligation long-term debt, subject to a limitation on the amount of debt outstanding. The tax
rate to finance general governmental services (other than the payment of principal and interest on general
obligation long-term debt) for the year ended September 30, 2018, was $7.58650 per $1,000. The debt
service tax rate for the same period was $0.4435 per $1,000.
Property taxes receivable reported in the government -wide statement of net position and the
governmental funds balance sheet represent amounts due for unpaid delinquent property taxes at
September 30, 2018. Property taxes that are not considered "available" have been reported as deferred
inflows in the governmental funds balance sheet.
89
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
NOTE 5. — CAPITAL ASSETS
The following is a summary of changes in capital assets during the year ended September 30, 2018:
Beginning
Ralonrr
Governmental Activities:
Capital assets, not being depreciated:
Land $ 103,511,914
Construction in progress 83,996,468
Total Capital Assets, not being depreciated 187,508,382
Depreciable Assets:
Buildings 354,840,090
Improvements 303,419,073
Machinery and equipment
257,924,474
Infrastructure
1,417,084,546
Total capital assets being depreciated
2,333,268,183
Less Accumulated Depreciation for:
Buildings
134,142,924
Improvements
196,850,181
Machinery and Equipment
186,428,648
Infrastructure
874,049,792
Primary Government
Additions/
Transfers In
$ 7,961,130
48.253,853
56,214,983
4,01.4,684
8,166,233
23,028,374
9,180,214
44,389,505
8,316,168
21,740,561
23,417,772
34,580,064
Retirements/
Transfers Out
$ (84,570)
(28,075,862)
(28,160,432)
(7,200,728)
(84,103)
(7,284,831)
(6,753,596)
(77,621)
Total accumulated depreciation 1,391,471,545 89,054,565 (6,831,217)
Total capital assets being depreciated, net 941,796,638 (43,665,060) (453,614)
Governmental activities capital assets, net S 1,129,305,020 S 12,549,923 $ (28,614,046)
Depreciation expense was charged to governmental functions as follows:
Function/Prop-ram Activities
General Government
Planning and Development
Community Development
Community Redevelpment Areas
Public works
Public Safety
Public Facilities
Parks and Recreation
Total depreciation expense
Construction Commitments
Denreciation Expenses
S 49,226,310
491,583
170,446
1,280,280
7,069,728
15,934,052
3,426,717
10,455,444
$ 88,054,565
Ending
Ralanrn
$ 111,388,474
104,174,459
215,562,933
358,854,774
311,585,306
273,752,120
1,426,180,657
2.370,372,857
142,459,092
218,590,742
203,092,824
908.552.235
1,472,694,893
897,677,964
S 1,113,240,897
As of September 30, 2018, the City had various construction projects in progress that were not
completed with remaining balances that totaled approximately $49.5 million. Funding of these projects
will be made primarily from proceeds of the bond issues, loans, future tax revenues and grants.
90
CITY OF NIIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Discretely Presented Component Units Capital Assets
The following is a summary of changes in capital assets of the City's component units during the year
ended September 30,2018:
MSEA, CIP, and WBID did not have any capital asset balances at September 30, 2018.
A summary of the changes in capital assets for Department of Off -Street Parking (DOSP) is as follows:
Less accumulated depreciation for:
Building and structures
28,054,517
DOSP
- 29,991,698
Leaschold improvements
10,106,396
Beginning
Additions/
Retirements/
Ending
53,721
Balance
Transfers In
Transfers Out
Balance
Capital assests, not being depreciated:
Total accumulated depreciation
50,411,481
2,6531964
(99,651) 52.965,794
Land
$ 5,937,211
$ - 8
- $
5,937,211
Construction in progress
2,294 467
4,060,810
-
6,355,277
Total capital assets, not being depreciated
8,231,678
4,060,810
-
12,292,488
Capital assets being depreciated
Building and structures
68,291,487
340,015
-
68,631,502
Leasehold improvements
10,936,777
115,848
-
11,052,625
Furniture and fixtures
874,970
-
-
874,970
Equipment
1.3,341,018
1,118,825
(121,740)
14,338,103
Total capital assests being depreciated
93,444,252
1,574,688
(121,740)
94,897,200
Less accumulated depreciation for:
Building and structures
28,054,517
1,937,181
- 29,991,698
Leaschold improvements
10,106,396
146,076
- 10,252,472
Furniture and fixtures
501,964
53,721
- 555,685
Equipment
11,748,604
516,986
(99,651) 12,165,939
Total accumulated depreciation
50,411,481
2,6531964
(99,651) 52.965,794
Total capital assets being depreciated, net
43,032,771
(1,079,276)
(22,089) 41,931,406
DOSP capital assests,net $ 51.264.449 $ 2,981,534 $ (22,089) $ 54,223,894
411
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
A summary of the changes in capital assets for Downtown Development Authority (DDA) is as follows:
Capital assets being depreciated:
Furniture and equipment
Less accumulated depreciation for:
Furniture and equipment
DDA capital assests, net
DDA
Beginning Additions/ Retirements/ Ending
Balance Transfers In Transfers Out Balance
695,633 $ 32,780 S - $ 728,413
440,556 64,069 - 504,625
$ 255,077 $ (31,289) $ - $ 223,788
A summary of changes in capital assets for Bayfront Park Management Trust (BFP) is as follows:
Capital assets, not being depreciated:
Land
Total capital assets, not being depreciated
Capital assets, being depreciated:
Buildings
Public domain and system infrastructure
Machinery and equipment
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings
Public domain and system infrastructure
Machinery and equipment
Total accumulated depreciation
Total capital assets being depreciated, net
BFP capital assets, net
BFP
Beginning Additions/ Retirements/ Ending
Balance Transfers In Transfers Out Balance
S 516,129 $ - S - $ 516,129
516,129 - - 516,129
2,637,934 -
- 2,637,934
8,085,306 663,611
- 8,748,917
817,629 22,454
- 840,083
11,540,869 686,065
- 12,226,934
1,546,549
52,759
- 1,599,308
3,517,080
368,511
- 3,885,591
536,576
47,751
- 584,327
5,600,205
469,021
- 6,069,226
5,940,664
217,044
- 6,157,708
$ 6,456,793 $ 217,044 $ - $ 6,673,837
VYA
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
A summary of changes in capital assets for Coconut Grove Business Improvement District (CGBID) is
as follows:
Capital assets being depreciated:
Furniture and equipment
Less accumulated depreciation for:
Furniture and equipment
CGBID capital assests, net
CGBID
Beginning Additions/ Retirements/ Ending
Balance Transfers In Transfers Out Balance
$ (x47,774 $ 54,428 $ - $ 702,202
68,626 74,544 - 143,170
$ 579,148 $ (20,116) $ - $ 559,032
Summary of the discretely presented component units capital assets at September 30, 2018 are as
follows:
Depreciation expenses were charged to the discretely presented component units as follows:
Entity
DOSP
DDA
BFP
CGBID
Total depreciation expense
93
Depreciation Expense
$ 2,653,964
64,069
469,021
74,544
$ 3,261,598
DOSP
DDA BFP CGBID
Total
Capital Assets:
Non -depreciable
$ 12,292,488 $
- $ 516,129 $ -
$ 12,808,617
Depreciable, net
41,931,406
223,788 6,157 708 559,032
48,871,934
Total
$ 54,223,894 $
223,788 $ 6,673,837 $ 559,032
$ 61,680,551
Depreciation expenses were charged to the discretely presented component units as follows:
Entity
DOSP
DDA
BFP
CGBID
Total depreciation expense
93
Depreciation Expense
$ 2,653,964
64,069
469,021
74,544
$ 3,261,598
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
NOTE 6. —ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable and accrued liabilities reported in the governmental funds balance sheet at September
30, 2018, consisted of the following:
Non -Major
Other Capital Emergency Governmental
General Projects Impact Fee Services Funds Total
Accounts Payables $12,961,601 $9,821,425 $3,887,581 $545,585 $12,227,808 $39,444,000
Retainage
54,280 4,810,950 460,428 1,615,777 2,023,200 8,964,635
Salaries and Benefits 27,945,085 - - 11,703 896,634 28,853,422
Total $ 40,960,966 $ 14,632,375 $ 4,348,009 $ 2,173,065 $ 15,147,642 $ 77,262,057
NOTE 7. — INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The balances reflected as due from/due to other funds reported as of September 30, 2018 are as follows:
Receivable Fund Payable Fund Amount
General Fund Other Capital Projects $ 7,823,188
General Fund Emergency Services 21,745,950
General Fund Non -Major Governmental Funds 3,820,336
Total $ 33,389,474
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) payments
between funds are made. The interfund payable balance of $21,745,950 is attributed to expenditures
related to Hurricane Irma. The City expects to receive grant reimbursement in the ensuing fiscal year
which will be used to liquidate the amounts owed to the general fund.
The following is a summary of interfund transfers reported for the fiscal year ended September 30, 2018:
Transfer In
Non -Major
Other Capital Governmental
Transfer Out General Projects Funds Total
General $ - $ 35,500,000 $47,153,000 $82,653,000
Other Capital Projects 476,000 - - 476,000
Nonmajor Governmental Funds 5,687,609 7,206,976 22,733,943 35,628,528
Total $ 6,163,609 $ 42,706,976 $ 69,886,943 $ 118,757,528
Transfers are used to (a) move revenues from the fund that statute or budget requires to collect them to
the fund that statute or budget requires to expend them, (b) move receipts restricted for debt service from
94
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
the funds collecting the receipts to the debt service fund as debt service payments become due, and (c)
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 $82.7 million. This total was
comprised of transfers of $35.5 million for Other Capital Projects fund and $47.2 million for other Non -
Major Governmental funds including Special Obligation Bonds (SOB).
The $35.5 million transferred to Other Capital Projects were allocated to various capital improvement
projects, including $4.4 million for Police and Fire, $3.8 million for Parks' projects, $4.6 million for
general government functions such as IT and Communications, $5.0 million for capital improvements to
Public Facilities, $11.8 million for public works functions such as Solid Waste and General Services
Administration (GSA), and $5.9 million for the Building Department.
The $47.2 million transferred from the General fund to other Non -Major funds consists of several
allocations. The most relevant ones are the following: $25.1 million for the payment of debt services from
the Public Service Tax, Parking Surcharge and Local Option Fuel Tax. Payments for debt service are an
allowable use of these revenue sources. $6 million to Police Special Revenue fund to cover cost
allocation, and some deficits of programs such as E-911, VOCA and COPS, $4.4 million contribution to
pay for Vehicle Lease debt service, $6.5 million to Departmental Improvement Initiatives Special
Revenue fund to fund programs such as Citywide anti -Poverty Initiative Program, Workforce, Live
Healthy Little Havana, Citywide festivals and special events, and Camillus House BED program, $1.3
million to cover the cost of a property intended to be the Public Works maintenance yard and $1.8 million
for citywide Radio Communication System.
Also included in this fiscal year's transfers is $35.6 million from Non -Major Governmental funds. This
total was comprised of $5.7 million to the General fund, $7.2 million to Other Capital Projects and $22.7
million to other Non -Major Governmental funds.
The $5.7 million to the General fund consists primarily of $1.1 million contribution to the James L
Knight Center operations from a Special Revenue Fund to the General Fund, $3.2 million transfer of
Increment Revenues from South East Park West (SEOPW) Community Redevelopment Agency (CRA)
pursuant to Section 5(e) of the Global Agreement and $0.8 million from the SEOPW CRA to reimburse
the City for the Sunshine Loan payment related to Gibson Park.
The $7.2 million to Other Capital Projects include amongst other: $3 million contribution from the Lane
closure fund to Public Works projects and $1.8 million from Tree Trust funds to the Public Works
projects.
The most relevant transfers included in the $22.7 million to other Non -Major Governmental funds are:
$1.3 million from Planning Special Revenue fund to Bayfront Park Land Acquisition Trust fund, $5.2
million from the OMNI and SEOPW CRAs Special Revenue funds to the CRA Debt Service funds to
cover the CRAs bond payments, $3.7 million from the Transportation and Transit Special Revenue fund
to the Transportation and Transit Capital fund, $4.2 million contribution from the OMNI CRA Special
Revenue fund to applicable Special Obligation Bond debt, $6.1 million contribution from Transportation
and Transit to Streets and Sidewalks' bonds payments and $2 million from the Marlins Garage to SOB
debt.
95
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Finally, in FY 2018, $476,000 were transferred out of Other Capital Projects funds to the General fund to
re -allocate prior year revenues from the Miami Rowing Club that were previously deposited in the Parks
Capital Fund.
NOTE 8. — LONGTERM OBLIGATIONS
Changes in Long -Term Obligations
The following is a summary of changes in long-term obligations reported for the year ended September
30, 2018:
660,861,380 132,556,675 (127,704.963) 665,713,092 55,718,125
Bond Premium (Discounts)
Restated
-
(1,566,708)
4,869,802
Beginning
Ending
Due within
Primary Government
Balance
Additions Reduction Balance
One Year
General Obligation Bonds
$ 174,640,000
$ - S (20,255,000) $ 154,385,000
$ 19,070,000
Special Obligation and Revenue Bonds,
Compensated Absences
50,015,248
Loans and Leases
486,221,380
132,556,675 (107,449,963) 511,328,092
36,648,125
660,861,380 132,556,675 (127,704.963) 665,713,092 55,718,125
Bond Premium (Discounts)
6,436,510
-
(1,566,708)
4,869,802
-
Total Bonds, Loans and Leases
667,297,890
132,556,675
(129,271,671)
670,582,894
55,718,125
Other Liabilities:
Compensated Absences
50,015,248
23,838,902
(16,245,872)
57,608,278
10,845,92{}
Claims Payable and other liabilities
209,426,429
160,812,867
(88,872,723)
281,366,573
54,985,263
Other Post Employement Benefits
630,398,513
-
(33,431,998)
596,966,515
-
Net Pension Liability
912,815,751
-
(52,063,291)
860,752,460
-
Total Governmental Activities
Long -Term Liabilities
$ 2,469,953,831
$ 317,208,444
$ (319,885,555)
$ 2,467,276,720 $
121,549,308
Claims payables, compensated absences, net pension liability, and other post -employment benefits are
generally liquidated by the General Fund.
Claims payable balance of $281.4 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 $86.7 million for potential legal claims as discussed in Note 12. Claims payables of $193.1
million reported in connection with the City's self-insurance program is discussed in Note 9.
The other postemployment benefits liability balance was restated at October 1, 2017 for the
implementation of GASB Statement No. 75 in the amount of $173 million. See Note 1.
96
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Bonds, Loans and Leases Outstanding — The following presents the City's bonds, loans and leases
outstanding at September 30, 2018:
97
Purpose of
Maturiti
Amount
Outstanding
Interest Rate
DESCRIPTION
Issue
Date
Issued
Balance
Range
General Obligation Bonds:
Homeland Defense/Neighborhood CIP
Series 2009 (Limited)
Homeland Defense
I/12019
S 51,055,000 S
2.460,000
5.00000
General Obligation Refunding Bond Series 2015
Refunding
I/1/2028
57,240,000
52.910,000
2.040%
General Obligation Refunding Bond Series 2017
Refunding
111/2029
114,380,000
99,015,000
2.1700/c
Total General Obligation Bonds
222,675,000
154,385,000
Special Obligation and Revenue Bonds, Loans and Leases:
Special Obligation Non -Ad Valorem Revenue
Series 1995
Pension
121112020
72,000,000
10,935,000
7.200%
Special Obligation Non -Ad Valorem Refunding
Bonds Series 2009
Refunding
12/112025
37.435,000
13.120,000
6950%- 7.000%
Special Obligation Tax -Exempt Revenue Bonds
Series 2010A
Parking
7112039
84.540,000
84,540,000
5.000"/0-5.250%
Special Obligation Tax Revenue Bonds, Garages
Series 201 OB
Parking
7/1/2027
16,830,000
925,000
5.9375%
Special Revenue Bonds
Series 2007
Street & Sidewalks
1/1/2037
80,000,000
63,595,000
4.250°/x-5.250%
Special Revenue Bonds
Series 2009
Street & Sidewalks
111/2039
65,000,000
56,725,(00
4.250/5.625%
Special Obligation Non -Ad Valorem
Refunding/Port
Refunding 2012
Tunnel
31112030
44,725,000
38,065,000
5.000%
Special Obligation Refunding Bonds
Series 2011-A
Refunding
2/12031
70,645,000
11,120,000
4.794%4973%
Special Obligation Bonds
Series 2017
Park Improvements
1/1/2032
27,160,000
25,665.000
2.5600/6
Special Obligation Refunding Bonds
Series 2014
Refunding
711/2026
18,049,380
8,049,239
3.280010
Special Obligation Refunding Notes
Series 2017
Refunding
2/1/2031
59,310,000
58,020,000
2.7803%
Special Obligation Refunding Note Pension
Series 2017
Refunding
12/112025
7,180,000
7,180,000
3.150010
Special Obligation Refunding Note Garage
Series 2018
Refunding
7/1/2027
16,555,000
16,555,000
3.750%
CRA SEOPW Tax Increment Revenue Bonds
Series 2014A -I
Redevelopment
311/2030
50,000,000
41,135.000
5.000010
CRA OMNI Tax Increment Revenue Bonds
Series 2018A
Redevelopment
911/2029
10,000.000
9,555,000
3.250010
CRA OMNI Tax Increment Revenue Bonds
Series 2018B
Redevelopment
9/1/2029
15.000,40)
15.000,000
4.490%
Gran Central Corporation Loan
Redevelopment
NIA
1,708.864
1,708,864
0.0000/0
Vehicle Replacement Program Series 2016
Vehicle Lease
111/2021
10,644,628
6,416,694
1.6765%
Vehicle Replacement Program Series 2017
Vehicle Lease
1/1/2022
10,054,922
8,132,449
2.1856010
Vehicle Replacement Program Series 2018
Vehicle Lease
1/1/2023
11,270,011
11,270,011
3.10320/a
Deli Financial Services Lease 2018
Equipment Lease
6,112022
373,938
291,858
4.88101/.
P25 Citywide Radio Equip. Lease
Radio System Lease
1/1/2024
12,100,000
10,456,251
2.0590%
State Revolving Fund Loan
Wagner Creek
N/A
12,867,726
12,867,726
0.000%
Total Special Obligation Bonds, Revenue Bonds, Loans and Leases
733,444 469
511,328,092
Total Bonds, Loans and Leases
S 956,124,469 S
665,713,092
97
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Annual Debt Service Requirements to Maturity
At September 30, 2018, the annual debt service requirements for all bonds, loans and leases, other than
state revolving fund loan for uncompleted Wagner Creek project, over the life of the debt is listed below:
Year General
Ended Obiligation Bonds
September 30, Principal Interest
2019 $ 19,070,000 $ 3,423,817
2020 20,075,000 2,957,634
2021
2022
2023
2024-2028
2029-2033
2034-2038
2039-2043
Total
20,895,000
2,506,753
23,065,000
2,026,603
8,255,000
1,668,416
59,165,000
4,189,496
3,860,000
41,881
$ 154,385,000 $ 16,814,600
Long -Term Debt Issued
Special Obligation,
Revenue Bonds,
Loans and Leases
Princinal Interest
$ 36,648,125 $ 21,464,214
37,487,377 19,724,868
34,085,298 18,221,579
29,012,777
17,047,859
27,774,665
16,042,978
137,787,747
64,805,489
109,388,238
37,542,253
85,300,000 16,414,719
13,843,865 411,741
$ 511,328,092 $ 211,675,700
Total
Princinal Interest
5 55,718,125 $ 24,888,031
57,562,377 22,682,502
54,980,298 20,728,332
52,077,777 19,074,462
36,029,665 17,711,394
196,952,747 68,994,985
113,248,238 37,584,134
85,300,000 16,414,71.9
13,843,865 411,741
665,713,092 $ 228,490,300
The following is a sununaiy of debt issued during the fiscal year September30, 2018:
$59,310,000 Special Obligation Non -Ad Valorem Bonds Series 2017 - On November 28, 2017, the
City issued $59,310,000 in Non -Ad Valorem Bond, Series 2017 and the cost of issuance thereof. The
proceeds from the Series 2017 Bond were used to refund a portion of the City's outstanding Special
Obligation Non -Ad Valorem Revenue Refunding Bonds Series 2011A and pay cost of issuances. The
refunding resulted in an aggregate difference in debt service payments of $8.86 million and an economic
gain of $6.3 million.
$16,555,000 Taxable Special Obligation Parking Revenue Refunding Note Series 2018 - On March
22, 2018, the City issued $16,555,000 in Taxable Special Obligation Revenue Refunding Note, Series
2018 and the cost of issuance thereof. The proceeds from the Series 2017 Note were used to refund a
portion of the City of Miami Special Obligation Taxable Parking Revenue Bonds, Series 2010B. The
refunding resulted in an aggregate difference in debt service payments of $1.8 million and an economic
gain of $1.4 million.
$7,180,000 Special Obligation Non -Ad Valorem Revenue Refunding Bonds Taxable Pension Series
2017 - On December 5, 2017, the City issued $7,180,000 Special Obligation Non -Ad Valorem Revenue
Refunding Bonds, Taxable Pension Series 2017 for the purpose to advance refund a portion of the Special
Obligation Non -Ad Valorem Revenue Refunding Bonds Taxable Pension Series 2009 and related closing
costs. The refunding resulted in an aggregate difference in debt service payments of $0.96 million and an
economic gain of $0.85 million.
98
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
$11,270,011 Vehicle Replacement Program - On July 27, 2018, The City obtained a $11,270,011 Lease
from Santander Bank, N.A. under a Master Lease Purchase Agreement. The lease was issued with an
interest rate of 3.1032% and a maturity date of January 1, 2023. The purpose of the lease is to purchase
police and fleet vehicles and to pay financing costs. At the end of the lease, the City will own the vehicles
outright; the City is not pledging any revenue as security for the lease. The vehicles themselves will
collateralize the lease.
$373,938 Dell Financial Services Equipment Lease - On June 1, 2018, The City obtained a $373,938
Lease from Dell Financial Services LLC under a Master Lease Purchase Agreement. The lease was issued
with an interest rate of 4.8810% and a maturity date of June 1, 2022. The purpose of the lease is to
purchase technology equipment and to pay financing costs. At the end of the lease, the City will own the
technology equipment; the City is not pledging any revenue as security for the lease. The vehicles
themselves will collateralize the lease.
$15,000,000 OMNI Tax Increment Revenue Note, Taxable Series 2018B - On July 13, 2018, OMNI
Community Redevelopment Agency Issued $15,000,000 OMNI Tax Increment Revenue Note, Taxable
Series 2018B to fmance the costs of the Agency's Redevelopment Plan and pay costs of issuing the
2018B Notes as more particularly described in the Loan Agreement. The 2018B Note will be secured by
Increment Revenues and other pledged amounts, all as more particularly described in Resolution No.
CRA -17-0034 adopted by the Board of Commissioners of the Agency on June 21, 2017.
$10,000,000 OMNI Tax Increment Revenue Note, Tax -Exempt Series 2018A— On March 6, 2018, the
OMNI Community Redevelopment Agency issued $10,000,000 OMNI Tax Increment Revenue Note,
Series 2018A to finance the costs of the Agency's Redevelopment Plan and pay costs of issuing the
2018A Notes as more particularly described in the Loan Agreement. The 2018A Note will be secured by
Increment Revenues and other pledged amounts, all as more particularly described in Resolution No.
CRA -17-0034 adopted by the Board of Commissioners of the Agency on June 21, 2017.
$12,867,726 State Revolving Loan Wagner Creek- On July 9, 2015, the City adopted resolution #15-
0304 approving a design and construction loan to the City for an amount not to exceed $22,413,800 from
the State of Florida Department of Environmental Protection Clean Water State Revolving Fund Program
for the Wagner Creek Seybold Canal Project.
Debt Authorized but Unissued
As of September 30, 2018, the City has authorized but not issued the following:
On July 9, 2015, the City adopted resolution #15-0304 approving a design and construction loan to the
City of Miami for an amount not to exceed $22,413,800 from the State of Florida Department of
Environmental Protection Clean Water State Revolving Fund Program for the Wagner Creek Seybold
Canal Project. As of September 30, 2018, the City has approximately $20,067,120 available for draw
down from the State.
On November 17, 2016, the Miami City Commission approved resolution #16-0563 for a declaration of
intent to issue tax-exempt and/or taxable special obligation bonds in the expected total maximum
principal amount of $45,000,000. This was done to reimburse the City for eligible expenses incurred with
respect to certain capital improvement projects at the Miami Marine Stadium and the associated Welcome
Center and Museum Complex.
99
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
On January 2, 2017, the Miami City Commission approved resolution #17-0020 for a declaration of intent
to issue tax-exempt and/or taxable special purpose improvement bonds in the expected total maximum
principal amount of $18,000,000. This was done to reimburse the City from the proceeds of such special
purpose improvement bonds for funds advanced by the City to pay eligible expenses incurred with
respect to certain public governmental capital improvement portions of the Miami Central Station Project
pursuant to the interlocal agency agreement among the City, the Southeast Overtown/Park West
Community Redevelopment Agency, and South Florida Regional Transportation Authority.
On November 7, 2017, a referendum election was held and the voters approved issuance of General
Obligation Bonds in an aggregate principal amount not exceeding $400,000,000 with interest payable at
or below the Maximum rate allowed by law, payable from Limited Ad -Valorem taxes levied on all
taxable property in the City, provided that the capital projects debt millage not exceed the current rate of
0.5935.
On July 26, 2018, the Miami City Commission approved resolution #18-0334 for a declaration of intent
to issue tax-exempt special obligation bonds in the expected total maximum principal amount of
$27,000,000 and to the extent permissible under the IRS Code regarding the tax-exempt Special
Obligation Bonds, use a portion of the tax-exempt Special Obligation Bond proceeds to reimburse the
City for funds advanced by the City for original expenditures incurred and to be incurred with respect to
the installation of underground of transmission lines..
Defeasance of Long -Term Debt
The City defeased certain debt involving advance refunding. The proceeds of the new bonds were placed
in an irrevocable trust to provide for all future debt services payments on the defeased bonds. At
September 30, 2018, the following outstanding bonds are considered defeased:
100
Principal
Date of
Amount
Principal
Type
Series
Defeasance
Call Date
Defeased
Outstanding
GOB Refunding Bonds
2009
6/29/2017
1/1/2019
$ 32,370,000
$ 32,370,000
SOB Refunding Bonds
2011A
11/28/2017
2/1/2021
52,975,000
52,975,000
SOB Taxable Pension
2009
12/5/2017
12/1/2019
6,385,000
6,385,000
Taxable SOB Parking Bonds
2010B
3/22/2018
7/1/2020
14,745,000
14,745,000
Total Defeased
$ 106,475,000
$ 106,475,000
100
CITY OF ML041, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Capital Lease Obligations
The City has entered into three agreements as lessee for financing the acquisition of police and fleet
vehicles in the amount of $31,969,560. The lease agreement qualifies as a capital lease for accounting
purposes and, therefore, have been recorded at the present value of their future minimum lease payments
as of the inception date. At year end the cost and accumulated depreciation of assets under lease were
$32.0 million and $10.9 million respectively.
The following is a schedule showing the future minimum lease payments under capital lease by years and
the present value of the minimum lease payments as of September 30,2018:
Year Ending September 30
2019
$ 6,863,126
2020
6,788,736
2021
6,713,420
2022
4,480,541
2023
2,355,591
Total minimum lease payments
27,201,414
Less: amount representing interest
(1,382,260)
Present value of minimum lease payments
$ 25,819,154
The City has entered into an agreement as lessee for financing the acquisition of 800 Megahertz ("MHZ")
Digital Trunked Simulcast Network System ("System") as part of the ongoing efforts to upgrade and
enhance two (2) way radio communications throughout the City, specifically for the Miami Police
Department, Fire -Rescue Department, and General Services Administration Department in the amount of
$12,100,000. The lease agreement qualifies as a capital lease for accounting purposes and, therefore, have
been recorded at the present value of their future minimum lease payments as of the inception date. At
fiscal year end, $1.6 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 $10.4 million of lease proceeds being held
in escrow.
The following is a schedule showing the future minimum lease payments under capital lease by years and
the present value of the minimum lease payments as of September 30, 2018:
Year Ending September 30,
2019
$ 1,861,516
2020
1,861,516
2021
1,861,516
2022
1,861,516
2023
1,861,516
2024
1,861,516
Total minimum lease payments
11,169,096
Less: amount representing interest
(712,845)
Present value of minimum lease payments
$ 10,456,251
The City has entered into an agreement as lessee for financing the acquisition of Technology Equipment
as part of the ongoing efforts to upgrade and enhance backup data servers for the City. The lease
101
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
agreement qualifies as a capital lease for accounting purposes and, therefore, have been recorded at the
present value of their future minimum lease payments as of the inception date. At year end the cost and
accumulated depreciation of assets under lease were $373,938 and $24,929 respectively.
The following is a schedule showing the future minimum lease payments under capital lease by years and
the present value of the minimum lease payments as of September 30, 2018:
Year Ending September 30,
2019
$ 82,080
2020
82,080
2021
82,080
2022
82,080
Total minimum lease payments
328,320
Less: amount representing interest
(36,462)
Present value of minimum lease payments
$ 291,858
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 non-
exempt property value. At September 30, 2018, the statutory debt limitation of assessed non-exempt
property value for the City amounted to $7.7 billion providing a debt margin of $7.5 billion after
consideration of $154.3 million of general obligation bonds outstanding at September 30, 2018 and
adjusted for the fund balance of $9.4 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 their
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, 2018, the City had approximately $32.1
million available in the sinking fund to meet this requirement. Principal and interest to be paid in
subsequent years totals $336.5 million on all other Special Obligation debt of the City.
Pledged Revenue
The City pledged future revenue proceeds of (i) 80 percent Transportation Taxes, (ii) 100 percent new
Local Option Gas Taxes, and (iii) 20 percent of the City's Parking Surcharge to repay $80 million in
Special Obligation Revenue Bonds, Series 2007 and $65 million Special Obligation Revenue Bonds,
Series 2009. 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 $3.2 million and $6.3 million
respectively. The current year pledged revenues were (i) $14.2 million (ii) $7.3 million and (iii) $4.4
million respectively. Principal and interest to be paid in subsequent years totals $99.2 million on the
Series 2007 bonds and $100.3 million on the Series 2009 bonds.
The City further pledged future revenue proceeds of (i) 100 percent Convention Development Taxes and
(ii) Parking Revenues in connection with MLB Home Games at the Miami Marlins Baseball Stadium,
along with related parking surcharge revenues to repay $84.5 million Tax -Exempt Special Obligation
Parking Revenue Bonds, Series 2010A, $0.9 million Taxable Special Obligation Parking Revenue Bonds,
102
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Series 2010B, 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 July 1, 2039. Debt service
payments began on January 1, 2012. Principal and interest to be paid in subsequent years totals $155
million on the Series 2010A bonds, $1 million on the Series 2010B bonds, and $20.3 million on the
Series 2018 bonds. Principal payments commenced in fiscal year 2016. The total pledge revenue
collected during the year was approximately $9.2 million and total principal and interest payments during
the year were $ 0.42 million and $5.2 million.
Escrow Agreement
On March 22, 2018, the City certified that the obligations under the said agreement have been satisfied.
The escrow accounts have been closed.
Purchase of Redemption Right
On November 10, 2004, Societe Generale, New York Branch, (the "Owner"), a beneficial owner of all
Non -Ad -Valorem Revenue Bonds Taxable Pension Series 1995 (the "Bonds") of the City of Miami,
Florida (the "City") maturing in the years 2015 and 2020 ( the "2015 and 2020 Maturities"), finalized an
Agreement with the City to pay $295,000, annually on each December 1, commencing on December 1,
2005 and ending on December 1, 2025, in exchange for the City's irrevocable agreement not to exercise
its option of redemption with respect to the 2015 and 2020 maturities.
Conduit Debt Obligations
On July 1, 1989, the City issued $30 million in Rental Revenue Bonds Series 1988 to finance a portion of
the costs of acquiring real estate and constructing thereon an office building to be leased from the City by
the General Service Administration, an agency of the United States of America (the Government),
pursuant to a Lease Agreement between the City and the Government. The bond was issued with an
interest rate of 8.650%, to mature on July 1, 2019. The bond is payable solely from and secured by a
pledge of rentals to be received from the lease agreement between the City and the Government. Lease
Annual Rent payments are made directly by the General Services Administration as an agency of the
United States to the Bond Trustee and Paying Agent. Annual Rental has been calculated to provide
sufficient funds to pay, when due, principal of and interest on the Bond. The Bond is not a general debt,
liability or obligation of the City or a pledge of the faith and credit of the City, but will be payable solely
from the Pledged Revenues. The obligation of the United States Government acting through General
Service Administration is stated in the Official Statement for the bonds to make payments of Annual Rent
under the Lease is an absolute and unconditional general obligation of the United States, for which the
full faith and credit of the United States are pledged. Accordingly, the bond is not reported as liabilities in
the accompanying financial statements.
At September 30, 2018, the amount of conduit debt outstanding related to the Rental Revenue Bond
totaled $2.95 million.
Debt Issue Beginning Balance Principal Payment Outstanding Balance
Series 1988 $ 5,665,000 S 2,715,000 S 2,950,000
103
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
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. Proceeds from these bond issues were used to finance construction of
buildings and parking facilities; land acquisitions; equipment purchases including beds and other medical
apparatus; renovation of existing facilities; and engineering costs. Debt obligations issued under the
purview 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, 2018, the City of Miami Health Facilities Authority conduit debt activity and
outstanding balance totaled $42.8 million.
Debt Issue
Beginning Balance Principal Payment Outstanding Balance
Series 2017 $ 43,650,000 $ 895,000 $ 42,755,000
The scheduled debt service payments were made by Miami Jewish Home and the payments are current.
Discretely Presented Component Units Long -Term Debt
Department of Off -Street Parking (DOSP)
The changes in DOSP's long-term debt for 2018 are as follows:
Bonds Payable
Premium (discount)
Compensated absences
Other post -employment
benefit liability (OPEB)
Loan from
primary government
Restated
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
$ 65,090 - $ 1,585 $ 63,505 $ 1,670
(653) 29 - (624) -
752 539 475 816 475
526
17
509
1,200 - 150 1,050 150
$ 66,915 $ 568 S 2.2-'7 $ 65,256 $ 2.295
• The beginning OPLB balance was restated at October 1, 2417 for the implementation for GASH Statement 75. See Note 1.
On September 24, 2009, the City Commission adopted ordinance 13092 authorizing DOSP to issue up to
$70.0 million in revenue bonds for the purpose of refunding the then outstanding Series 2008 bonds. On
November 5, 2009, DOSP issued $60.1 million of tax-exempt, fixed-rate revenue refunding bonds and
$6.5 million in taxable, fixed-rate revenue refunding bonds (collectively, the Series 2009 Revenue
Bonds). The proceeds of these bonds were used to: (1) fully redeem and refund the then outstanding
Series 2008 bonds, (2) pay for costs of issuance on the Series 2009 revenue bonds, (3) pay for additional
construction costs on the Courthouse Center Garage, and (4) pay fees to terminate the existing interest
rate swap agreement in connection with the Series 2008 bonds. DOSP refunded the Series 2008 variable
104
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
rate debt with Series 2009 fixed rate debt. The Series 2009 Revenue Bonds are secured by the net
revenues of the parking facilities and, accordingly, are included in the accounts of DOSP.
On July 21, 2005, DOSP entered into a loan agreement with the City of Miami. The loan was obtained
through CDBG program in the amount of $3 million to be used for the construction of a parking garage
facility. The loan bears no interest and is payable in 40 semi-annual installments of $75,000 which started
December 1, 2005. The outstanding balance as of September 30, 2018 is $1.1 million.
The following summarizes the debt service to maturity of outstanding DOSP debt at September 30, 2018:
Year Ending
Bonds
September 30,
Principal
Interest
Total
2019
$ 1,670,000
$ 3,063,784
$ 4,733,784
2020
1,760,000
2,964,679
4,724,679
2021
1,860,000
2,883,304
4,743,304
2022
1,940,000
2,796,004
4,736,004
2023
2,030,000
2,704,654
4,734,654
2024-2028
11,645,000
11,927,982
23,572,982
2029-2033
14,770,000
8,61.2,850
23,382,850
2034-2038
18,880,000
4,293,919
23,173,919
2039-2043
8,950,000
237,265
9,187,265
Total
$ 63,505,000
$ 39,484,441
$ 102,989,441.
Range of Rates 4.25%-5.66%
Loan
Principal
$ 150,000
150,000
150,000
150,000
150,000
300,000
$ 1,050,000
NOTE 9. — RISK MANAGEMENT SELF-INSURANCE AND OTHER LIABILITIES
Section 768.28, Florida Statute, provides for waiver of sovereign immunity in tort actions or claims
against the state and its agencies and subdivisions. The present statutory limit of recovery in the absence
of special relief granted by the Florida legislature is $200,000 per person and $300,000 per incident.
Under the protection of this sovereign immunity limit, Florida Statutes 768.28 and Chapter 440, Florida
Statutes covering Workers' Compensation, the City has established a self-insured program to provide
coverage for almost all areas of liability including workers' compensation, general liability, automotive
liability, police professional liability, public officials' liability, and employment practices liability. The
City also purchases excess insurance coverage to limit catastrophic losses associated with its liability
exposures. The excess liability insurance program provides for $10 million in total limits for GL and AL
lines. In addition, the program provides for excess auto physical damage coverage with a $1 million
primary limit and $4 million excess subject to $100,000 retention, along with a $250,000 workers'
compensation coverage buffer. The excess insurance program currently has a self-insured retention of
$750,000 per occurrence for workers' compensation, and $500,000 for all other liability coverage. In
addition, the City has in place standalone polices providing coverage for Law Enforcement Liability and
Public Officials Liability with a $5 million limit per line of coverage subject to a $500,000 retention. The
City also purchases dedicated commercial general liability policies for the Grapeland Waterpark,
Bayfront Park, and the various marinas that it operates. These policies typically carry a $1 million limit
per occurrence on an aggregate basis.
105
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The City's master property insurance program provides for a total of $150 million in insurance limits. The
City's total insured value on covered property is $511 million. Included in this amount is $40 million for
named windstorm and flood coverage. With the exception of earthquake, flood and named windstorm, the
all -other -perils deductible is $50,000 per occurrence. In regard to the named windstorm, flood, and
earthquake exposures, the deductible is 5 percent of the value of the affected location subject to a
minimum of $250,000 for any one occurrence, and $7.5 million aggregate loss.
The City also maintains separate property insurance programs for the James L. Knight Center and the
Marlins Stadium parking garages. The James L. Knight Center property program provides $46.4 million
in limits for all perils including windstorm and flood. The James L. Knight Center property program has a
$50,000 all other perils deductible, and a deductible of 3 percent of total insured values at time of loss,
with a $1 million minimum for named windstorm and flood perils. The Marlins Stadium parking garage
program provides for $25 million in total limits for windstorm and flood, and for $81.2 million for all
other perils. The Marlins Stadium parking garage program has a $25,000 all other perils deductible, and a
deductible of 5 percent of total insured values at time of loss, with a $100,000 minimum per location for
named windstorm and flood perils.
The payment of losses within the self-insured retention level are made from the General Fund. Claims are
adjusted by a third party administrator. Claims expenditures and liabilities are reported when it is
probable that a loss has occurred and the amount of that loss can be reasonably estimated. The budgeting
process utilizes information developed in the previous year's actuarial report.
The City provides group health plan for its active employees, retirees, and their dependents through a
fully self-funded health insurance program. The City is currently contributing approximately 87 percent,
while the employees are contributing 13 percent of the calculated health insurance premium. The City is
currently contributing approximately 8 percent of the calculated health insurance premium cost for non -
Medicare eligible retirees and approximately 38 percent for Medicare eligible retirees. The City is
currently purchasing specific stop loss coverage for claims in excess of $250,000.
At September 30, 2018, the total estimated undiscounted liability is recorded in the government -wide
financial statements. Changes in the claims and other litigation related liability amounts for 2017 and
2018 were as follows:
Fiscal Year
Beginning of
Ended
Fiscal Year
September 30,
Liability
2018
$ 209,426,429
2017
209,618,213
Current Year
Claims and Changes
in estimates
$ 160,812,867
84,573,859
106
Claim
Payments
$ (88,872,723)
(84,765,643)
Balance at
Fiscal Year End
$ 281,366,573
209,426,429
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
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 ("GESE") and Other Managed Trusts, and the City of Miami Elected Officers' Retirement Trust
(`BORT"). Thereafter the "Plans."
Basis of Accounting. The financial statements for the Plans are prepared using the accrual basis of
accounting. All Plans are reported as pension trust funds in the City's financial statements. Plan member
contributions are recognized in the period in which the contributions are due. Employer contributions are
recognized when due and the employer has made a formal commitment to provide the contributions.
Benefits and refunds are recognized when due and payable in accordance with the terms of the Plans.
Method Used to Value Investments. Investments of the Plans are recorded at fair value, which is the
price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The Plans categorizes its fair value measurements
within the fair value hierarchy established by GASB 72. The hierarchy is based on the valuation inputs
to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical
assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable
inputs. In addition, certain investments of the Pension Trust Funds are measured at the net asset value
"NAV") per share (or its equivalent).
FIREFIGHTERS' AND POLICE OFFICERS' RETIREMENT TRUST (FIPO)
The audited financial statements for the plan can be obtained from the FIPO Trust Fund, 1895 SW 3"
Avenue, Miami Florida, 33129.
Plan Description
FIPO is a single -employer, defined benefit plan established by the City pursuant to the provisions and
requirements of Ordinance No. 10002 as amended. Participants are contributing police officers and fire
fighters with full-time employment status in the Police or Fire Department of the City.
As of October 1, 2017, the date of the most recent actuarial report valuation, membership in the FIPO
consisted of the following:
Retirees and beneficiaries currently receiving benefits and terminated members Members
entitled to benefits but not yet receiving benefits 2,204
Current members 1.943
Total 4,147
Pension Benefits
Members may elect to retire after 10 or more years of creditable service upon attainment of normal
retirement age. Normal retirement pursuant to Section 40-203 of the City of Miami code shall be
determined as follows:
Plan A - For members employed on September 30, 2010, who as of that date have attained age 50 with
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
107
CITY OF ML MI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
with ten or more years of creditable service, or rule of 64 retirement for police officer members, or rule
of 68 for firefighter members.
Plan B - For members employed on September 30, 2010, who as of that date have not attained age 50
with ten or more years of creditable service, or rule of 64 retirement for police officer members, or rule
of 68 retirement for firefighter members, and member hired on or after October 1, 2010 shall have to
meet the be rule of 70 for retirement with a minimum age of 50 and ten or more years of creditable
service.
Rule of 64, 68 and 70 is a computation consisting of the sum of a member's age and length of creditable
service, which sum shall permit normal service retirement upon the member's combined age and
creditable service equaling at least 64, 68 and 70, respectively.
A member entitled to a normal retirement benefit shall receive a retirement allowance equal to 3 percent
of the member's average final compensation (as defined in City Code section 40-191), multiplied by
years of creditable service for the first 15 years of such creditable service, plus a retirement allowance
equal to 3 percent (3 %2 percent for members who retired prior to October 1, 2010) of member's average
final compensation multiplied by the years of creditable service in excess of 15 years, paid in monthly
installments.
The maximum benefit for members who retire after September 30, 2010 is 100 percent of average final
compensation or $100,000 per year, whichever is less, as of retirement or DROP entry date. Early
retirement, disability, death and other benefits are also provided
Cost ofLiving 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 II") was established. The agreement included the
following: (a) the funding method was changed to an aggregate cost method; (b) all accounts were
combined for investment purposes (membership and benefits, COLA I, and COLA II); (c) retirees
receive additional COLA benefits; and (d) active members no longer contribute 2 percent of pretax
earnings to fund the original retiree COLA I account.
The COLA II account is funded annually by a percentage of the excess investment return from the
COLA I account assets. The excess earnings contributed to the COLA II account are used to fund a
minimum annual payment of $2.5 million, increasing by 4 percent compounded annually. To the extent
necessary, the City will fund the portion of the minimum annual payment not funded by the annual
excess earnings no later than January 1 of the following year. For the year ended September 30, 2018,
approximately $6.4 million was funded by the City. Benefits payable from the COLA accounts are
computed in accordance with an actuarially based formula as defined in Section 40.204 of the City of
Miami Code.
Deferred Retirement Option Plan (DROP)
Members who are eligible for service retirement or Rule of 64 Retirement after September 1998 may
elect to enter the deferred retirement option plan (the "DROP"). Upon election of participation, a
member's creditable service, accrued benefits, and compensation calculation are frozen and the 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
108
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
continue City employment for a maximum of 36 months prior to October 1, 2001. Effective October 1,
2001, maximum participation in the DROP for firefighters shall be 48 full months and for police officers
who elect the DROP on October 1, 2003, or thereafter, maximum participation in the DROP shall be 48
full months.
Effective July 24, 2008, firefighter DROP participants may continue City employment for up to 54 full
months (48 full months prior to July 24, 2008 and 36 full months prior to October 1, 2001). Police
officers who elect the DROP on or after May 8, 2008, may continue City employment for up to 84 full
months (48 full months prior to May 8, 2008 and 36 full months prior to October 1, 2003). Once the
maximum participation has been achieved, the participant must terminate employment.
The DROP of the FIPO Trust also consists of a Benefit Actuarially Calculated DROP (`BACDROP").
The BACDROP is a DROP benefit actuarially calculated. A member may elect to BACDROP to a date,
no further back than the date of the member's requirement eligibility date. The BACDROP period must
be in 12 month increments, beginning at the start of a pay period, not to exceed 48 full months for
firefighters (36 months prior to October 1, 2001) and for police officers who elected BACDROP on
October 1, 2003 (36 months prior to October 1, 2003). The benefits of the BACDROP will then be
actuarially calculated to be the equivalent to the benefit earned at the date of retirement.
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 Internal Revenue Code Section 457 Plan, or an
annuity. A participant may defer payment until the latest date authorized by Section 401(a) (9) of the
Internal Revenue Code. DROP participation will not affect any other death or disability benefit provided
under law or applicable collective bargaining agreement. If a participant dies before the account
balances are paid out in full, the beneficiary will receive the remaining balance.
Participants in the DROP are not entitled to receive an ordinary or service disability retirement and in the
event of death of a DROP participant, there is no accidental death benefit for pension purposes.
Participation in the DROP does not affect any other death or disability benefit provided to a member
under federal law, state law, City ordinance, or any rights or benefits under any applicable collective
bargaining agreement. The DROP balance for the year ended September 30, 2018 amounted to $154.4
million.
Contributions and Funding Policies
Police officer members of FIPO are required to contribute 10 percent of their salary on a bi-weekly basis
(7 percent prior to October 1, 2012). Firefighter members are also required to contribute 10 percent (9
percent prior to October 1, 2009) of their salary on a bi-weekly basis. The City is required to contribute
such amounts annually as necessary to maintain the actuarial soundness of FIPO and to provide 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 future
contributions that would otherwise be required to provide for the defined level of benefits under the
FIPO Trust.
109
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The payroll for employees covered by FIPO for the year ended September 30, 2018 was approximately
$141.5 million. The City is required to contribute the difference between the actuarially determined rate
and the contribution rate of employees. For the year ended September 30, 2018, the average active
employee contribution rate was 10 percent of annual pay, and the City's average contribution rate was 40
percent of annual payroll.
Summary of Significant Accounting Policies
For the purposes of measuring the net pension liability and deferred outflows/inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of FIPO and
additions to/deductions from the Plan fiduciary net position have been determined on the same basis as
they are reported by FIPO. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the Pension Plan.
Net Pension Liability
The components of the net pension liability for FIPO at September 30, 2018, are as follows:
FIPO
Total pension liability $ 2,120,924,585
Plan fiduciary net position (1,566,682,376)
Net pension liability $ 554,242,208
Actuarial Assumptions
The total pension liability was based on an October 1, 2017 actuarial valuation rolled forward to the
measurement date of September 30, 2018, using the following assumptions, applied to all periods in the
measurement:
Actuarial Assumptions
Measurement Date September 30, 2018
Inflation 3.25%
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 1 st
Assumed rate of return 7.34% compounded annually, net of pension plan
on investments investment expense including inflation.
Mortality rates are calculated with the Florida Retirement System special risk mortality projected scale
BB generationally for all healthy retirees. Disabled Mortality rates are calculated based on Florida
Retirement System (no projection scale).
The actuarial assumptions used in the October 1, 2017 valuations was based on the results of an actuarial
experience study for the period October 1, 2014 to September 30, 2017.
110
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The long-term expected rate of return on pension plan investments was determined in accordance with
Actuarial Standard of Practice (ASOP) No.27, Selection 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 target
asset allocation as of September 30, 2018 are summarized in the following table:
Asset Class
Long -Term Expected
Real Rate of Return
Domestic Fixed Income
2.99%
Domestic Equity
7.08%
International Equity
6.35%
Real Estate
5.57%
Private Equity
6.65%
Real rates of return are net of the long-terin inflation assumptionof 3.25% for 2018
Discount Rate
The discount rate used to measure the total pension liability was 7.34 percent. The projection of cash
flows used to determine the discount rate assumed that Plan member contributions will be made at the
current contribution rates and that contributions from the City will be made at statutorily required rates,
actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be
available to make all projected future benefit payments of current Plan members. Therefore, the long-
term expected rate of return on pension Plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
Chanzzes in Benefit Terms
In the prior year there was a full restoration of benefits due to the Supreme Court Ruling in favor of
FIPO, which increased both the total pension liability and pension expense by $122.6 million. In fiscal
year 2018, the City and FIPO entered into settlement agreements which resulted in the benefits not being
restored and canceled as of fiscal year end September 30, 2018. The change in benefits resulted in a
reduction of the total pension liability and pension expense of $122.6 million for the fiscal year ended
September 30, 2018 (see Note 12). The change in benefits resulted in a reduction of the total pension
liability and pension expense of $122.6 million for the fiscal year ended September 30, 2018.
111
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Chanzes 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 30,2018:
*Balances were restated as of September 30, 2017, See Note 15.
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, 2018:
Current Discount
1% Decrease Rate 1% Increase
(6.34%) (7,34%) (8.34%)
Net Pension Liability $ 782,938,042 $ 554,242,209 $ 361,854,373
112
FIPU
Increase (Decrease)
Total Pension
Plan Fiduciary Net
Net Pension
Liability
Position
Liability
(a)
(b)
(a) - (b)
Balance at 10/01/2017, as restated* $
2,184,102,526
$ 1,551,350,461
$ 632,752,065
Changes for the year:
Service Cost
27,965,925
-
27,965,925
Interest
149,244,425
-
149,244,425
Changes of benefit terms
(122,641,436)
-
(122,641,436)
Differences between expected and
actual experience
21,728,074
-
21,728,074
Changes of assumptions
16,618,357
-
16,618,357
Contributions - employer
-
56.999,866
(56,999,866)
Contributions - member
-
14,258,763
(14,258,763)
Net investment income
-
102,296,006
(102,296,006)
Benefit payments, including; refunds of
member contributions
(156,093,286)
(156,093,286)
-
Administrative expenses and other
-
(2,129,434)
2,129,434
Net Changes
(63,177,941)
15,331,915
78,509,856
Balances at 09/30/2018 $
2,120,924,585
$ 1,566,682,376
$ 554,242,209
*Balances were restated as of September 30, 2017, See Note 15.
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, 2018:
Current Discount
1% Decrease Rate 1% Increase
(6.34%) (7,34%) (8.34%)
Net Pension Liability $ 782,938,042 $ 554,242,209 $ 361,854,373
112
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pension
For the year ended September 30, 2018, the City recognized pension expense of $ 47.3 million. At
September 30, 2018 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
FIPQ
Deferred Outflow of Deferred Inflows of
Resources Resources
$ 37,433,456 $
36,724,762
558,888
22,893,853 22,721,737
$ 97,052,071 $ 23,280,625
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions
will be recognized in pension expense as follows:
Year ended September 30:
2019
$25,324,672
2020
$10,136,529
2021
$10,868,462
2022
$16,485,662
2023
$5,478,062
Thereafter
$5,478,059
GENERAL EWLOYEESANDSANITATIONEWLOYEESRET/RENEW MUST (GESETmst)
The Board of Trustees of the GESE Trust administers four defined benefit pension plans: (a) GESE; (b)
an Excess Benefit Plan for the City of Miami (the "EBP"); (c) General Employees and Sanitation
Employees Retirement Trust Staff Pension Plan (the "Staff Trust"), and (d) General Employees and
Sanitation Employees Retirement Trust Staff Excess Benefit Plan (the "Staff Excess Benefit Plan").
Each plan's assets may be used only for the payment of benefits to the members of that Plan, in
accordance with the terms of the Plan.
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.
113
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
GESS Trust
Plan Description
The GESE Trust is a single -employer defined benefit plan. The GESE Trust was established pursuant to
the City Ordinance No. 10002 and subsequently revised under City Ordinance No. 12111. The GESE
Trust covers all City general and sanitation employees except certain employees eligible to decline
membership. Participation in the GESE Trust is a mandatory condition of employment for all regular and
permanent employees other than fire fighters, police officers and executive level employees hired after
October 1, 2009.
As of October 1, 2017, the date of the most recent actuarial valuation report, membership in the GESE
consisted of the following:
Members
Retirees and beneficiaries currently receiving benefits 1,979
Terminated members entitled to benefits but not yet receiving benefits 236
Current members 1.943
Total 4,158
Pension Bene zts
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 age
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 of
creditable service or age 60 and 10 years of continuous creditable service or a combination of at least ten
years of creditable service plus attained age equaling 80 points (Rule of 80).
Retirement benefits are generally based on 3 percent of the average final compensation multiplied by
years of creditable service, which is paid annually in monthly installments. For service after September
30, 2010, for members not eligible to retire as of that date, benefits are based on 2.25 percent of average
final compensation multiplied by creditable service up to 15 years, 2.5 percent of average final
compensation for 15 to 20 years of service and 2.75 percent for service over 20 years. Effective
September 30, 2012, for members not eligible to retire on that date, member retirement allowances shall
not exceed $80,000. Any member who has accrued a benefit in excess of the maximum benefit as of
September 30, 2012 will retain that benefit but will not accrue any additional benefit.
Members eligible to receive accumulated sick and vacation leave from the City are able to transfer the
amount to an eligible retirement plan. The GESE Trust facilitates the transfer of accumulated sick and
vacation leave to any eligible retirement plan and is pursuant to Section 40-266 of the City Code.
Cost ofLivin,gAdiustment (COLA)
Effective October 1, 1998, the GESE Trust was amended to provide for an increase in the COLA paid to
retirees to 4 percent with a $400 annual maximum increase, provided the retiree's first anniversary of
retirement has been reached. The amendment also provided for retirees electing the return of their
contribution option to receive a minimum COLA benefit of $27 per year and a maximum COLA benefit
114
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
of $200 added to the previous COLA benefit, provided the retiree's first anniversary of retirement has
been reached.
Deferred Retirement Ontion Plan (DROP
The DROP is available to GESE Trust members for normal retirement as of January 1, 2013 or vested as
of October 1, 2010. The DROP is not available to any other GESE Trust member. The DROP is an
enhancement to the GESE Trust that can provide a member with another way to save for retirement. It
allows a participant to receive pension payments by depositing in the DROP program while continuing
to work and receive pay and benefits as an active employee. At the end of the DROP period, when the
participant is officially required to retire, the participant receives monthly pension payments based on the
years of service and salary at the time that the participant enrolled in the DROP. The participant may
elect to receive the accumulated DROP account balance or can be rolled over into a separate tax -
qualified plan after withdrawing from the DROP. DROP pension payment for the year ended September
30, 2018 amounted to $1.1 million. The DROP balance for the year ended September 30, 2018 amounted
to $35.5 million.
The Backdrop is available to all GESE Trust members effective January 1, 2013. Under the
BACKDROP option a member can receive a lump sum payment in addition to a monthly pension
annuity. The employee chooses to take a BACKDROP at the end of his or her employment with the
City as long as he or she BACKDROPs to any date after he or she reaches the Normal Retirement date.
If the member elects the BACKDROP option, the monthly benefit payable on the member's actual
retirement date (when the member leaves City employment) is based on the benefit the member would
have received had he or she left employment and retired on an earlier Normal Retirement date, referred
to as the BACKDROP date. In addition, the member will receive a lump sum payment equal to the
accumulation of annuity payments he or she would have received during the Backdrop period had he or
she elected to receive immediate pension annuity payments equal to the accumulation of annuity
payments he or she would have received during the BACKDROP period had he or she elected to receive
immediate pension annuity payments starting as of the BACKDROP date. Annuity payments would be
accumulated at the rate of 3 percent per year, compounded annually. The member's BACKDROP date
can be any date after his or her Normal Retirement Date and the BACKDROP period can be any date
after his or her Normal Retirement Date and the BACKDROP period can be as little as one year and as
long as seven years. If the member does not elect a BACKDROP benefit option, his or her monthly
retirement benefit will be calculated using his or her final average final compensation and creditable
service as of the member's actual employment termination date. The participant may receive the
accumulated BACKDROP account balance upon electing the BACKDROP and at the end of his or her
employment. The BACKDROP monies can be rolled over into a separate tax -qualified plan after
withdrawing from the DROP. BACKDROP pension payment for the year ended September 30, 2018
amounted to $70,430.
Contributions and Fundiniz Policies
Members of the GESE are required to contribute 10 percent of their salary on a bi-weekly basis. The
GESE's funding policies provide for periodic contributions at actuarially determined rates that, expressed
as percentages of annual covered payroll, are sufficient to maintain the actuarial soundness of the GESE
and to accumulate sufficient assets to pay benefits when due. The City is required to contribute an
actuarially determined amount that, when combined with participants' contributions, will fully provide
all benefits as they become payable. Contributions to the GESE are authorized pursuant to Sections 40-
115
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
246(a) and (b) of the City Code. Contributions from the City are designed to fund the GESE's non-
investment expenses and normal costs and to fund the unfunded actuarial accrued liability. The yield
(interest, dividends and net realized and unrealized gains and losses) on investment of the GESE 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, 2018 was
approximately $97.4 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, 2018, the
average active employee contribution rate was 11.4 percent of annual pay, and the City's average
contribution rate was 35.3 percent of annual payroll.
Summaryoffignificant Accounting Policies
For the purposes of measuring the net pension liability and deferred outflows/inflows of resources
related to pensions, and pension expense, information about the fiduciary net position ofGESE Trust and
additions to/deductions from the GESE Trust fiduciary net position have been determined on the same
basis as they are reported by GESE Trust. For this purpose, benefit payments (including refunds of
employee contributions) are recognized when due and payable in accordance with the Pension Plan.
Net Pension Liability
The components of the net pension liability of the GESE Trust at September 30, 2018, are as follows:
GESE Trust
Total pension liability $ 960,959,524
Plan fiduciary net position (667,854,473)
Net pension liability $ 293,105,051
Actuarial Assumptions
The total pension liability was based on an October 1, 2016 actuarial valuation rolled forward to the
measurement date of September 30, 2017, using the following assumptions, applied to all periods in the
measuremgnt:
Actuarial Assumptions
Measurement Date September 30, 2017
Inflation 3.5%
Projected salary increases 4% - 8.75%, including inflation
Assumed rate of return on 7.6% per year, net of pension plan investment expense and including
investments inflation
The rates of mortality are according to the following tables:
Pre -Retirement Mortality
116
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Female: RP2000 Generational, 100% Combined Healthy White Collar, Scale BB
Male: RP2000 Generational, 50% Combined Healthy White Collar / 50% Combined Healthy Blue
Collar, Scale BB
Post -Retirement Healthy Mortality
Female: RP2000 Generational, 100% Annuitant White Collar, Scale BB
Male: RP2000 Generational, 50% Annuitant White Collar / 50% Annuitant Blue Collar, Scale BB
Post -Retirement Disabled Mortality
Female: RP2000, 100% Disabled Female set forward two years, no projection scale
Male: RP2000, 100% Disabled Male, set back four years, no projection
Long Term Rate of Return
The long term expected rate of return on pension plan investments was determined using a long -normal
distribution analysis in which best -estimate ranges of expected future real rates of return (expected
returns, net of retirement Plan investment expense and inflation) are developed for each major asset
class. These ranges are combined to produce the long-term expected rate of return by weighting the
expected future real rates of return by the target asset allocation percentage and by adding expected
inflation. Best estimates of real rates of return for each major asset class included in the pensions Plan's
target asset allocation as of September 30, 2018 are summarized in the following table:
Asset Class
Long -Term Expected
Real Rate of Return
U.S. Large Cap Equity
4.90%
U.S. Small Cap Equity
5.75%
International Equity
5.25%
Real. Estate
5.50%
Cash and Other
2.10%
Core Bonds
1.500/0
Discount Rate
The discount rate used to measure the total pension liability was 7.6 percent. The projection of cash
flows used to determine the discount rate assumed that Plan member contributions will be made at the
current contribution rates and that contributions from the City will be made at statutorily required rates,
actuarially determined Based on those assumptions, the Plan's fiduciary net position was projected to be
available to make all projected future benefit payments of current plan members. Therefore, the long-
term expected rate of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
117
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Chayes in Net Pension Liability
The following table shows the GESE Trust changes in net pension liability based on the actuarial
information provided to the City at September 30, 2018:
Balance at 10/01/2017
Changes for the year:
Service Cost
Interest
Differences between expected and actual
experience
Changes of assumptions
Contributions - employer
Contributions - member
Net investment income
Benefit payments, including refunds of
member contributions
Administrative expenses and other
Net Changes
Balances at 09/30/2018
GESS Trust
Increase (Decrease
Total Pension
Plan Feduciary
Net Pension
Liability
Net Position
Liability
(a)
(b)
{a) - (b)
$ 881,795,448
S 617,704,941
$ 264,090,507
12,906,853
- 12,906,853
64,220,387
- 64,220,387
10,997,320
- 10,997,320
64,620,251
- 64,620,251
-
34,355,719 {34,355,719}
-
11,081,234 (11,081,234)
-
78,645,544 (78,645,544)
(73,580,735)
79,164,076
$ 960,959,524
(73,580,735) -
(352,230) 352,230
50,149,532 29,014,544
$ 667,854.473 S 293,105,051
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following table illustrates the impact of interest rate sensitivity on the GESE Trust net pension
liability as of September 30,2018:
Current Discount
1% Decrease Rate 1% Increase
(6.6%) (7.6%) (8.06%)
Net Pension Liability $ 397,072,730 $ 293,105,051 $ 205,608,756
118
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pension
For the year ended September 30, 2018, the City recognized pension expense of $29.2 million. At
September 30, 2018 the City reported deferred inflows and outflows of resources from the following
source:
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 Trust
Deferred Outflows of Deferred Inflows of
Resources Resources
$ 14,019,363 $ 3,125,933
52,653,538 251,798
22,833,504
40,879,285 -
$ 107,552,186 $ 26,211,235
There is $40.9 million reported as deferred outflows of resources related to pension resulting from City
contributions made subsequent to the measurement date. Amount will be recognized as a reduction of
the net pension liability in the year ended September 30, 2019. Other amounts reported related to
pensions will be recognized in pension expense as follows:
Year ended September 30:
2019
$8,619,797
2020
13,122,160
2021
5,671,718
2022
7,446,690
2023
5,601,301
GESE Excess Benefit Plan (EBP)
Plan Description
In July 2000, the City, pursuant to applicable Internal Revenue Code provisions, established a qualified
governmental excess benefit plan to continue to cover the difference between the allowable pension to be
paid and the amount of the defined benefit so the benefits for eligible members are not diminished by
changes in the Internal Revenue Code. The GESE Board of Trustees administers the excess benefit plan.
GESE members are not required to contribute to the EBP. Members of the GESE participate in this plan.
As of October 1, 2017, the date of the most recent actuarial report valuation, membership in the EBP
consisted of 36 retirees currently receiving benefits.
Contributions and Fundin-a Policies
The payment of the City's contribution of excess retirement benefits for eligible members of GESE
above the limits permitted by the Internal Revenue Code is: (a) funded from the City's General Fund; (b)
paid annually concurrently with the City's annual contribution to normal pension costs which causes the
119
CITY OF NIIANII, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
City to realize a reduction in normal pension costs in the same amount; and (c) deposited in a separate
account established specifically for the GESE to receive the City's excess retirement benefit
contributions. This account is separate and apart from the accounts established to receive the City's
normal pension contributions for the GESE. The EBP is an unfunded plan and the City is required to
contribute as benefits become payable.
The payroll for employees covered by the EBP for the year ended September 30, 2018 was
approximately $97.4 million. The City's contribution to the plan for the year ended September 30, 2018
was $674,572 and plan benefit payments were $674,572. 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, 2018, the City's average contribution rate was 0.69% percent of annual payroll.
Summary of&=Liicant Accounting Policies
For the purposes of measuring the net pension liability and deferred outflows/inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of GESE EBP and
additions to/deductions from the GESE EBP fiduciary net position have been determined on the same
basis as they are reported by GESE EBP. For this purpose, benefit payments (including refunds of
employee contributions) are recognized when due and payable in accordance with the Pension Plan.
Net Pension Liability
The components of the net pension liability of the GESE EBP at September 30, 2018, are as follows:
Total pension liability
Plan fiduciary net position
Net pension liability
GESE EBP
$ 11,152,247
$ 11,152,247
Actuarial Assumptions
The total pension liability was based on an October 1, 2016 actuarial valuation rolled forward to the
measurement date of September 30, 2017 using the following assumptions, applied to all periods in the
measurement:
Actuarial Assumptions
Measurement Date September 30, 2017
Inflation 3.50%
Projected salary increases 4% - 8.75%, including inflation
Investment rate of return Not applicable, the plan has no assets for investments
The rates of mortality are according to the following tables:
Pre -Retirement Mortality
Female: RP2000 Generational, 100% Combined Healthy White Collar, Scale BB
Male: RP2000 Generational, 50% Combined Healthy White Collar / 50% Combined Healthy Blue
Collar, Scale BB
120
CITY OF MM II, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Post -Retirement Healthy Mortality
Female: RP2000 Generational, 100% Annuitant White Collar, Scale BB
Male: RP2000 Generational, 50% Annuitant White Collar / 50% Annuitant Blue Collar, Scale BB
Post -Retirement Disabled Mortality
Female: RP2000, 100% Disabled Female set forward two years, no projection scale
Male: RP2000, 100% Disabled Male, set back four years, no projection
Long Term Rate ofReturn
The Excess Plan has no assets therefore long term rate of return is not applicable.
Discount Rate
The discount used to measure the total pension liability was 3.57 percent. Since the Excess plan has no
assets, there are no assets available to make projected future benefit payments of current plan members.
Therefore, the applicable municipal bond index rate of 3.57 percent, based on the Bond Buyer General
Obligation 20 -year Municipal Bond Index published monthly by the Board of Governors of the Federal
Reserve System as of September 30, 2016 was applied to all periods of projected benefit payments. As a
result, the Single Equivalent Interest Rate (SEIR) is also 3.57 percent. The SEIR at the beginning of the
measurement period was 2.93 percent based on the applicable municipal bond index rate of 2.93 percent
as of September 30, 2017 applied to all periods of projected benefit payments. The projection of cash
flows used to determine the discount rate assumed that employer contributions will be made in
accordance with the City Ordinance and Florida Statutes.
Chan-aes 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 30,2018:
Balance at 10/01/2017
Changes for the year:
Interest
Differences between expected and
actual experience
Changes of assumptions
Contributions - employer
Benefit payments, including
refunds of member contributions
Net Changes
Balances at 09/30/2018
CESE EBP
Increase (Decrease)
Total Pension Plan Feduciary Net Net Pension
Liability Position Liability
(a) (b) (a) - (b)
$ 13,481,890 $ - $ 13,481,890
385,137 - 385,137
(1,948,114) - (1,948,114)
(92,094) - (92,094)
674,572 (674,572)
(674,572) (674,572) -
(2,329,643) - (2,329,643)
$ 11,152,247 $ - $ 11,152,247
Sensitivity of the Net Pension Liability to Chanzes in the Discount Rate
121
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The following table illustrates the impact of interest rate sensitivity on the GESE EBP net pension
liability as of September 30, 2018:
Current Discount
1% Decrease Rate I% Increase
(2.57%) (3.57%) (4.57%)
Net Pension liability $ 12,886,030 $ 11,152,247 $ 9,782,659
Pension Expense and Deferred Outflows/In ows ofResources Related to Pension
For the year ended September 30, 2018, the City recognized pension expense of $1 million. At
September 30, 2018 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 EBT'
Deferred Outflows of Deferred inflows of
Resources Resources
1,359,060 $ 1,895,523
870,830 75,040
587,959 -
$ 2,817,849 $ 1,970,563
There is $587,959 reported as deferred outflows of resources related to pension resulting from City
contributions made subsequent to the measurement date. Amount will be recognized as a reduction of
the net pension liability in the year ended September 30, 2019. Other amounts reported related to
pensions will be recognized in pension expense as follows:
Year ended September 30:
2019
$582,519
2020
401,087
2021
(195,335)
2022
(377,816)
2023
(151,128)
City of Miami General Employees and Sanitation Employees Retirement Trust (Staff Trust)
Plan Description
The Staff Trust is a single -employer, defined benefit plan. The Staff Trust was established by the rule-
making authority of the GESE, pursuant to Chapter 40 of the City Code. The Staff Trust covers all
administrative full-time employees and other positions as may be named by the Board of Trustees.
Participation in the Staff Trust is a mandatory condition of employment for all full-time employees, other
than those eligible to decline membership.
122
CITY OF NHANH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
As of October 1, 2017, the date of the most recent actuarial report valuation, membership in the Staff
Trust consisted of the following:
Members
Retirees and beneficiaries currently receiving benefits 4
Terminated members entitled to benefits but not yet receiving benefits 1
Current members 7
Total 12
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 age
equaling 70 points may elect a Rule of 70 Retirement. However, a member is entitled to early retirement
at any age with at least 10 years of creditable service. Retirement benefits are generally based on 3
percent of the average final compensation during the highest two years of membership service multiplied
by years of creditable service, which is paid annually in monthly installments. A retired member who
dies prior to having received 12 monthly retirement payments and prior to having an optional allowance
becoming effective will have a lump sum equal to the excess, if any, of 12 times the monthly payments
over the actual payments received paid to his designated beneficiary.
Deferred Retirement Option Plan (DROP)
The Staff Trust implemented a DROP for employees eligible for Rule of 70 Retirement on March 26,
2010. Any employee who is eligible for a Rule of 70 Retirement is eligible to participate in the DROP.
Upon election of participation, a member's creditable service, accrued benefits, and compensation
calculation are frozen and the DROP payment is based on the member's average final compensation.
The member's contribution and the City contribution to the retirement plan for that member ceases as no
further service credit is earned. The member does not acquire additional pension credit for the purposes
of the pension plan, but may continue City employment for up to a maximum of 48 months. Once the
maximum participation has been achieved, the participant must terminate employment.
Upon termination of employment, a participant may receive payment from the DROP account in a lump
sum distribution; or periodic payments. A participant may elect to rollover the balance to another
qualified retirement plan, individual retirement account, an Internal Revenue Code Section 457 Plan, or
an annuity. A participant may defer payment until the latest date authorized by Section 401(a) (9) of the
Internal Revenue Code. DROP participation will not affect any other death or disability benefit provided
under law or applicable collective bargaining agreement. If a participant dies before the account
balances are paid out in full, the beneficiary will receive the remaining balance. The DROP balance for
the year ended September 30, 2018 amounted to $970,072 thousand.
Contributions and Funding Policy
Members of the Staff Trust are required to contribute 10 percent of their salary on a bi-weekly basis.
The funding policies of the Staff Trust provide for periodic contributions at actuarially determined rates
that, expressed as percentages of annual covered payroll, are sufficient to maintain the actuarial
soundness of the Staff Trust and to accumulate sufficient assets to pay benefits when due. The City is
required to contribute an actuarially determined amount that, when combined with member
contributions, will fully provide all benefits as they become payable. The yield (interest, dividends and
net realized and unrealized gains and losses) on investments of the Staff Trust serves to reduce or
123
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
increase future contributions that would otherwise be required to provide for the defined level of benefits
under the Staff Plan.
The payroll for employees covered by the Staff Trust for the year ended September 30, 2018 was
approximately $225,000. 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, 2018, the
average active employee contribution rate was 9.9 percent of annual pay, and the City's average
contribution rate was 109.9 percent of annual payroll.
Summary ofSignificant Accounting Policies
For the purposes of measuring the net pension liability and deferred outflows/inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of GESE Staff
Trust and additions to/deductions from the GESE Staff Trust fiduciary net position have been
determined on the same basis as they are reported by GESE Staff Trust. For this purpose, benefit
payments (including refunds of employee contributions) are recognized when due and payable in
accordance with the Pension Plan.
Net Pension Liability
The components of the net pension liability of the GESE Staff Trust at September 30, 2018, are as
follows:
GESE Staff Trust
Total pension liability S 5,019,792.
Plan fiduciary net position (3,831,837)
Net pension liability $ 1,187,955
Actuarial Assumptions
The total pension liability was based on an October 1, 2016 actuarial valuation rolled forward to the
measurement date of September 30, 2017, using the following assumptions, applied to all periods in the
measurement:
Actuarial Assumptions
Measurement Date September 30, 2017
Inflation 3.50%
Projected salary increases 6%, including inflation
Investment rate of return 7.6% per year, net of pension plan investment expense and including
inflation.
124
CITY OF NIIANII, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The rates of mortality are according to the following tables:
Pre -Retirement Mortality
Female: RP2000 Generational, 100% Combined Healthy White Collar, Scale BB Male: RP2000
Generational, 50% Combined Healthy White Collar / 50% Combined Healthy Blue Collar, Scale BB
Post -Retirement Healthy Mortality
Female: RP2000 Generational, 100% Annuitant White Collar, Scale BB
Male: RP2000 Generational, 50% Annuitant White Collar / 50% Annuitant Blue Collar, Scale BB
Post -Retirement Disabled Mortality
Female: RP2000, 100% Disabled Female set forward two years, no projection scale
Male: RP2000, 100% Disabled Male, set back four years, no projection
Lonz Term 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 retirement Plan investment expense and inflation) are developed for each major asset
class. These ranges are combined to produce the long-term expected rate of return by weighting the
expected future real rates of return by the target asset allocation percentage and by adding expected
inflation. Best estimates of real rates of return for each major asset class included in the pension plan's
target asset allocation as of September 30, 2018 are summarized in the following table:
Asset Class
Long -Term Expected
Real Rate of Return
U.S. Large Cap Equity 4.90%
U.S. Small Cap Equity 5.75%
International Equity 5.25%
Core Bonds 1.50%
Discount Rate
The discount rate used to measure the total pension liability was 7.6 percent. The projection of cash
flows used to determine the discount rate assumed that Plan member contributions will be made at the
current contribution rates and that contributions from the City will be made at statutorily required rates,
actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be
available to make all projected future benefit payments of current plan members. Therefore, the long-
term expected rate of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
125
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
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, 2018:
Balance at 10/01/2017
Changes for the year:
Service Cost
Interest
Changes of benefit ternis
Differences bet�A een expected and
actual experience
Changes of assumptions
Contributions - employer
Contributions - member
Net investment income
Benefit payments, including refunds
of member contributions
Net Changes
Balances at 09/30/2018
GESS Stasi' Trust
Increase (Decrease)
Total Pension Plan Feduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
4,364,739 $ 3,465,231 $ 899,508
52,832
320,492
460,951
10,440
105,798
(295,460)
655,053
S 5,019,792
- 52,832.
320,492
460,951
247,449
24,542
438,774
295,460)
366,606
$ 3,831,837
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
10,440
105,798
(247,449}
(24,542)
(438,774}
288,447
$ 1,187,955
The following table illustrates the impact of interest rate sensitivity on the GESE Staff Trust Plan net
pension liability as of September 30,2018:
Current Discount
I% Decrease Rate 1% Increase
(6.6%) (7.6%) (8.6%)
Net Pension Liability $ 1,866,907 $ 1,139,256 $ 562,557
126
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Pension Expense and Deferred Outflows/Inflows ofResources Related to Pension
For the year ended September 30, 2018, the City recognized pension expense of $358,206. At September
30, 2018 the City reported deferred inflows and 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
GESS Staff Trust
Deferred Deferred
Outflows of Inflows of
Resources Resources
12,055
67,878
43,004
122,937
228,681
138,626
367,307
There is $43,004 reported as deferred outflow of resources related to pension resulting from City's
contributions made subsequent to the measurement date. Amount will recognized as a reduction of the
net pension liability in year ended September 30, 2019. Other amounts reported as deferred outflows of
resources related to pensions will be recognized in pension expense as follows:
Year ended September 30:
2019
$ (215,209)
2020
23,701
2021
(60,606)
2022
(35,260)
GESE Staff Excess Benefit Plan
Plan Description
The original effective date is May 25, 2001. The plan was established to fund the excess, if any, of the
benefit earned under the GESE Staff Plan without taking into account the Internal Revenue Code (IRC)
Section 415 limits. Membership consists of members of the GESE Trust Staff Plan who exceed the
maximum benefit. There are no member contributions or plan assets.
Effective October 1, 2016, the plan document was amended to provide for an increase in the COLA paid
to retirees to 4% with a $400 annual maximum increase, provided the retiree's fifth anniversary of
retirement has been reached. The amendment also provided for retirees electing the return of
contribution option to receive a minimum COLA benefit of twenty-seven dollars per year and a
maximum COLA benefit of two hundred dollars added to the previous COLA benefit, provided the
retiree's fifth year anniversary of retirement has been reached.
As of October 1, 2017, the date of the most recent actuarial report valuation, membership in the EBP
consisted of 1 active member.
127
CITY OF NIIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Elected Officers' Retirement Trust (EORT)
Plan Description
Prior to October 22, 2009, the City's elected officials participated in a single -employer, non-contributory
defined benefit pension plan under the administration and management of a separate Board of Trustees.
Under the EORT, eligibility requires 7 years of total service if elected between October 1, 2001 and
October 22, 2009, or 10 years of total service if elected prior to October 1, 2001 as an elected official of
the City to be vested without requiring that such service be continuous. Any official elected after
October 22, 2009 is not eligible to participate in the plan.
The City, pursuant to applicable Internal Revenue Code provisions, also established qualified
governmental excess benefit plans to continue to cover the difference between the allowable pension to
be paid, and the amount of the defined benefit, so that the benefits for eligible members are not
diminished by changes in the Internal Revenue Code.
Separate stand-alone financial statements are not issued for EORT and are presented as part of the
Combining Statement of Fiduciary Net Position and Combining Statement of Changes in Fiduciary Net
Position located in the Fiduciary Funds section of the City's CAFR.
As of January 1, 2018, the date of the most recent actuarial valuation, membership in the EORT
consisted of the following:
Members
Retirees and beneficiaries currently receiving benefits 6
Terminated members entitled to benefits but not yet receiving benefits 2
Active officers with future range of service from 1 to 3 years 2
Total 10
Pension Benefits
Benefits accrue for elected officers at the rate of 50 percent of the highest annual W-2 wages in the last
three years of employment after 7 years of service as an elected official of the City plus 5 percent for
each additional year up to 100 percent at 7 or more years of service. The Plan benefit is payable
beginning on the date the participant ceases to be an elected officer, but no earlier than the participanf s
55th birthday. The benefit is payable monthly, for the participant's lifetime. An active participant will be
fully vested upon death and a single sum death benefit is payable. The EORT was frozen to new entrants
effective October 22, 2009. Only participants who were accruing benefits and had not yet become vested
in their benefits as of that date continue to accrue benefits under the EORT. Benefit accruals for all other
participants were frozen.
Contributions and Funding Policy
The annual contribution is determined using the Projected Unit Credit (PUC) Cost Method, which was
adopted effective with the January 1, 2012 actuarial valuation report. The PUC Cost Method separates
and develops funding components for annual contributions into 1) normal costs and 2) an amortization
payment toward the unfunded accrued liability for past service benefits. Revising the actuarial funding
method allows the City to fund the payment liability over a longer period of time. Contributions made to
EORT are in accordance with actuarially determined contribution requirements, based on the actuarial
valuation performed for each respective year.
128
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
EORT is a non-contributory defined benefit plan; therefore, all funding is provided by the City. The City
is required to contribute the actuarially determined rate. The City's contribution to the plan for the year
ended September 30, 2018 was $553,471.
For the year ended September 30, 2018, EORT had no covered payroll for employees.
Summary ofSigniflcant Accounting Policies
For the purposes of measuring the net pension liability and deferred outflows/inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of EORT and
additions to/deductions from the EORT fiduciary net position have been determined on the same basis as
they are reported by EORT. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the Pension Plan.
Net Pension Liability
The components of the net pension liability of EORT at September 30, 2018, were as follows:
EORT
Total pension liability $ 8,488,936
Plan fiduciary net position (7,375,239)
Net pension liability $ 1,113,697
Actuarial Assumptions
The total pension liability in the January 1, 2018 actuarial valuation was determined using the following
assumptions, applied to all periods in the measurement
Actuarial Assumptions
Measurement Date January 1, 2018
Assumed rate of return on 3.75% for the period Jan 1, 2018 and future periods, net
investments of pension plan investment expense
Inflation Rate 2.5%
Mortality rates after commencement of monthly benefits are calculated with RP -2000 Mortality Table,
sex -distinct, rates for annuitants, adjusted for white-collar employees, and with fully -generational
mortality improvement projected under Scale BB2D. No mortality is assumed for years prior to the
expected commencement date for monthly benefits.
Long - Term Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-
block method in which best -estimate ranges of expected future real rates of return (expected returns, 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 expected future real rates
129
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
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 of
September 30, 2018, are as follows:
Asset Class
U.S. Fixed Income
Discount Rate
Long -Term Expected
Real Rate of Return
1.50%
The discount rate used to measure the total pension liability was 3.75 percent (includes inflation). The
projection of cash flows used to determine the discount rate assumed that Plan member contributions
will be made at the current contribution rates and that contributions from the City will be made at
statutorily required rates, actuarially determined. Based on those assumptions, the Plan's fiduciary net
position was projected to be available to make all projected future benefit payments of current plan
members. Therefore, the long-term expected rate of return on pension plan investments was applied to
all periods of projected benefit payments to determine the total pension liability.
Chanzes 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, 2018:
Interest
EORT
-
319,429
Increase (Decrease)
Total Pension
Plan Fiduciary
Net Pension
Liability
Net Position
Liability
(a)
(b)
(a) - (b)
Balances at 10/01/2017 $ 8,694,583
$ 7,102,802
$ 1,591,781
Changes for the year:
(47,166)
Benefit payments, including
Service Cost -
-
-
Interest
319,429
-
319,429
Differences between expected and
actual experience
(199,276)
-
(199,276)
Contributions - employer
-
553,471
(553,471)
Net investment income
-
47,166
(47,166)
Benefit payments, including
refunds of member contributions
(325,800)
(325,800)
-
Administrative expenses and Other
-
(2,400)
2,400
Net Changes
(205,647)
272,437
(478,084)
Balances at 9/30/2018 $
8,488,936
$ 7,375,239
$ 1,113,697
130
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Sensitivity of the Net Pension Liability to Chanizes in the Discount Rate
The following table illustrates the impact of interest rate sensitivity on the EORT net pension liability as
of September 30, 2018:
Current Discount
1% Decrease Rate 11/0 Increase
(2.75%) (3.75%) (4.75%)
Net Pension Liability $ 2,318,913 $ 1,113,697 $ 133,211
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pension
For the year ended September 30, 2018, the City recognized pension expense of $21,466. At September
30, 2018 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 $ 406,654
Employer contribution made subsequent to measurement
date 553,471
Total $ 960,125
There is $553,471 reported as deferred outflows of resources related to pensions resulting from City
contributions made subsequent to the measurement date. Amounts will be recognized as a reduction of
the net pension liability in the year ended September 30, 2019. Other amounts reported as deferred
outflows of resources related to pensions will be recognized in pension expense as, follows:
Year ended September 30:
2019
2020
2021
2022
131
$158,604
123,082
82,462
42,506
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
The following summarizes net pension liability, deferred inflow and outflow of resources at September
30, 2018, for each Pension Plan as previously discussed in Note 10:
Plan
FIPO
GESE Trust
GESE Excess
GESE Staff Trust
EORT
Total
Net Pension
Liability
$ 554,242,209
293,105,051
11,152,247
1,139,256
1,113,697
$ 860,752,460
Deferred
Inflow of
Resources
$ 23,280,625
26,211,235
1,970,563
367,307
Deferred
Outflow of Pension
Resources Expense
$ 97,052,071 49,851,064
107 546 186 29,155,306
2,817,849
122,937
960.125
$ 57,102,112 $ 211,071,427
1,004,457
358,206
21,466
$ 107,390,499
The schedules of changes in the net pension liability and related ratios and the schedules of
contributions, presented as Required Supplementary Information (RSI) following the notes to the
financial statements, provides additional information about the net pension liability, plan assets and
contributions for each of the City's defined benefit pension plan.
Special Benefit Plans (SBP)
Certain executive employees of the City are allowed to join the ICMA Retirement Trust's 401(a) plan
(the "SBP"). This defined contribution deferred compensation plan, which covers governmental
employees throughout the country, is governed by a Board of Directors responsible for carrying out the
overall management of the organization, including investment administration and regulatory compliance.
Membership for the City employees is limited by the City Code to specific members of the City Clerk,
City Manager, City Attorney's offices, Department Directors, Assistant Directors, and other executives.
To participate in the plan a written trust agreement must be executed, which requires the City to
contribute 8 percent of the individual's earnable compensation, and the employee to contribute 10
percent of their salary. Participants may withdraw funds at retirement or upon separation based on a
variety of payout options. The City does not have any fiduciary responsibility relating to the plan,
consequently the plan assets are not recorded in the fiduciary funds of the City.
As of September 30, 2018, the City's participation in this plan was as follows:
Total current year's payroll for all employees $ 334,349,316
Current year's payroll for participating employees 8,140,076
Current year employer contributions 747,695
In addition to coverage under the FIFO, the firefighters and police officers are members of two separate
non-contributory money purchase benefit plans established under the provisions of Chapters 175 and
185, Florida Statutes, respectively. These two plans are funded solely from proceeds of certain excise
taxes levied by the City and imposed upon property and casualty insurance coverage within the City
limits. This tax, which is collected from insurers by the State of Florida, is remitted directly to the Plans'
Boards of Trustees. The City is entitled to levy such excise taxes solely for the use of the money
purchase benefit plans as long as the minimum benefit provisions of Chapter 175 and 185, Florida
132
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Statutes, are met by the FIPO. The City does not have any fiduciary responsibility relating to the SBP,
consequently plan assets are not recorded in the fiduciary funds. The total of such excise taxes received
from the State of Florida and remitted to the plans was $9.6 million for the year ended September 30,
2018. Accordingly, these monies are recorded as pass through funds in the City's financial statements.
Benefits are allocated to the participants based upon their service during the year and the level of funding
received during said year. Participants are fully vested after nine years of service. Upon termination of
service, a participant may elect to receive one of the three options (1) a lump sum payment; (2) five
substantially equal payments, or (3) 10 percent or more in the first year and the remainder in any way
over the next four years. The total must be paid out within five years.
NOTE 11. — POST -EMPLOYMENT HEALTH CARE BENEFITS
Pursuant to Section 112.080 1, Florida Statutes, the City is required to permit participation to the health
insurance program by retirees and their eligible dependents at a cost to the retiree that is no greater than
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 health
care coverage and life insurance at a discounted premium equal to the blended group rate. The City
follows GASB Statement No. 75 Accounting and Financial Reporting for Post -employment Benefits
Other than Pensions (OPEB) for financial reporting and disclosure of its OPEB plan.
Plan Description
The City has two separate single -employer OPEB plans for its retirees. One plan is for retiring police
officers and the other plan is for all other retiring employees (the "Non -Police Retirees"). The benefits
afforded to all retirees include lifetime medical, prescription, vision, dental and certain life insurance
coverage for retiree and dependents. Non -Police Retirees receive the same benefits as similarly situated
active employees of the City, while retired police officers receive the same benefits as provided through
the FOP Health Trust.
The City offers to its retiree's comprehensive medical coverage and life insurance benefits through its
self-insurance plan. This plan was established in accordance with Section 112.0801, Florida Statutes.
Substantially all of the City's general employees, sanitation employees and firefighters may become
eligible for these benefits when they reach normal retirement age while working for the City.
As of October 1, 2017, the most recent actuarial valuation date, there are approximately 5,546 covered
participants of whom approximately 3,708 are active employees and 1,838 are retirees.
Contributions and Fundingicy
The City is authorized to establish benefit levels and approve the actuarial assumptions used in the
determination of contributions levels. Retirees are contributing the majority of their premium costs each
month. Spouses and other dependents are also eligible for coverage, although the retiree pays the
premium cost.
133
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
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 to bring the HIT's minimum fund balance to $2.35 million
annually.
Currently, the City's subsidy to OPEB benefits is unfunded. There are no separate trust funds or
equivalent arrangements into which the City makes contributions to advance -fund the OPEB obligations,
as it does for its retiree pension plans. The City's cost of the OPEB benefits is funded on a pay-as-you-go
basis. The City contributed $9.7 million for the fiscal year ended September 30, 2018.
Retired Police Officers - OPEB Plan
The City's total OPEB liability for its Police Officers was determined by an actuarial valuation as of
October 1, 2017 and rolled forward to September 30, 2018 using the following assumptions applied to all
periods included in the measurement, unless otherwise specified:
Actuarial Assumptions
Projected salary increases Not applicable
Discount rate 4.24%
Healthcare cost trend rates 9.5% for FY2017, decreasing 0.5% per year to an ultimate rate of
5.0% for FY2021
Mortality rates were based on the RPH-2014 Total Dataset mortality table with mortality improvements
Projected by Scale MP -2017 on a generational basis.
Changes of assumptions and other inputs reflect a change in the discount rate from 3.63% at September
30, 2017 to 4.24% at September 30, 2018
Discount Rate
The discount rate used to measure the total OPEB liability was 4.24 percent.
In accordance with GASB Statement No. 75, the discount rate should be the single rate that reflects the
following:
a. The long; -term expected rate of return on OPEB plan investments that are expected to be used to
finance the payment of benefits, to the extent that (1) the plan's fiduciary net position is projected to
be sufficient to make projected benefit payments and (2) OPEB assets are expected to be invested
using a strategy to achieve that return.
b. A yield or index rate for 20 -year, tax-exempt, general obligation municipal bonds with an average
rating of AA/Aa or higher. To the extent that the conditions in (a.) are not met.
A Trust for the OPEB plan was not opened, the plan meets the requirements of (b.) above. Thus, a
discount rate of 4.24% was adopted as of the September 30, 2018 measurement date.
134
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Changes in the Total OPEB Liability
Retired Police Officers
Increase (Decrease)
Total OPEB
Liability
(a)
Balances at 9/30/2017 S 431,729,277
Changes for the year:
Service Cost 18,643,389
Interest 16,174,180
Changes of assumptions (52,081,436)
Benefit payments, including refunds of member contributions (9,692,349)
Net Changes (26,956,216)
Balances at 9/30/2018 $404.773.061
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following table illustrates the impact of interest rate sensitivity on thetotal OPEB Liability for fiscal
year ending September 30, 2018:
1% Decrease
(3.24%)
Total OPEB Liability $ 565,888,266
Current Discount
Rate 1 % Increase
(4.24%) (5.24%)
$ 404,773,061 $ 375,967,745
The following table illustrates the impact of healthcare cost trendrate sensitivity on the total OPEB
Liability for fiscal year ending September 30, 2018:
135
Health care cost
1% Decrease
Trend Rates
1% Increase
(6.00%
(7.00%
(8.00%
decreasing to
Decreasing to
decreasing to
4.00%)
5.00%)
6.00%)
Total OPEB Liability $ 334,041,995
$ 404,773,061
$ 499,757,329
135
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
OPEB Expense and Deferred Outflows ofResources and Deferred Inflows of Resources Related to OPEB
For the fiscal year ended September 30, 2018, the City recognized OPEB expense of $27,873,377. At
September 30, 2018, the City reported deferred inflows of resources related to OPEB in the amount of
$45,137,244 for changes in assumptions.
Amounts reported as deferred inflows of resources related to OPEB will be recognized in OPEB expense
as follows:
Year ended September 30:
2019
$6,944,192
2020
6,944,192
2021
6,944,192
2022
6,944,192
2023
6,944,192
Thereafter
$10,416,284
Other Than Police — OPEB Plan
The City's Other Than Police total OPEB liability of $192,193,000 was measured as of September 30,
2018 and determined by an actuarial valuation as of that date.
Actuarial Assumptions
The following actuarial assumptions were used and applied to all periods included in the measurement,
unless otherwise specified:
Actuarial Assumptions
Projected salary increases 3.5% per annum
Discount rate 4.24% per annum
Healthcare cost trend rates The annual trends are based on the current HCA Consulting trend
study and are applied on a select and ultimate basis. Select trends
range from 7%-4.5% and are reduced 0.5% each year until reaching
the ultimate trend rate of 4.5%.
Mortality rates were based on the RP -2014 generational table scaled using MP -2018 and applied on a
gender -specific basis
Discount Rate
The discount rate used to measure the total OPEB liability was 4.24 %, which is based on the Bond Buyer
20 -Bond GO index.
136
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Chanzes in the Total OPEB Liability
Other Than Police
Increase (Decrease)
Total OPEB
Liability
Balances at 9/30/2017
$ 198,669,236
Changes for the year:
Service Cost
11,604,247
Interest
7,543,984
Changes of assumptions
(20,723,542)
Benefit payments, including
refunds of member contributions
(4,900,471)
Net Changes
(6,475,782)
Balances at 9/30/2018
$192,193,454
Change of assumptions and other inputs reflect a change in the discount rate from 3.63% at September
30, 2017 to 4.24% at September 30, 2018.
Sensitivity of the Net OPEB Liability to Chanzes in the Discount Rate
The following table illustrates the impact of interest rate sensitivity on thetotal OPEB Liability for fiscal
year ending September 30, 2018
Current Discount
1% Decrease Rate 1 % Increase
(3.24%) (4.24%) (5.24%)
Total OPEB Liability $ 164,034,000 $ 192,193,000 $ 227,870,000
The following table illustrates the impact of healthcare cost trend rate sensitivity on the total OPEB
Liability for fiscal year ending September 30, 2018
1% Decrease
Total OPEB Liability S 157,032,000
137
Health care cost
Trend Rates 1% Increase
192,193,000 $ 238,064,000
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
OPEB Expense and De erred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the fiscal year ended September 30, 2018, the City recognized OPEB expense of $16,850,732. At
September 30, 2018, the City reported deferred inflows of resources related to OPEB in the amount of
$18,426,043 for changes in assumptions.
Amounts reported as deferred inflows of resources related to OPEB will be recognized in OPEB expense
as follows:
Year ended September 30:
2019
$ 2,297,499
2020
2,297,499
2021
2,297,499
2022
2,297,499
2023
2,297,499
Thereafter
$ 6,938,548
NOTE 12. — COMMITMENTS AND CONTINGENCIES
The City participates in a number of federal and state assisted programs. These programs are subject to
audit under the requirements of the Florida Single Audit Act and Chapter 10.550, Rules of the Auditor
General and OMB Uniform Guidance. The City received revenues and contributions related to grants
from Federal agencies and the State of Florida. These grants are for specific purposes and are subject to
review and audit by the grantor agencies. Such audits could result in requests for reimbursement for
expenditures being disallowed under the grant terms. Based upon prior experience, the City's
management believes any requests for reimbursement, if any, will not be significant.
Global Agreement: In December 2007, the City, the County, the OMNI CRA, and the Southeast
Overtown Park West CRA, entered into an inter -local agreement that establishes the funding framework
for several major facilities and infrastructure improvement projects. Those projects include the Arsht
Performing Arts Center ("Arsht Center"), Miami Port Tunnel, Museum Park improvements, and the
Miami Marlins Baseball Stadium and parking facilities.
The agreement specifically calls for the OMNI CRA to increase its contribution to the County to service
debt and other loans on the Arsht Center. Further, the agreement established parameters by which the
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 CRAB' redevelopment
plans. The additional OMNI CRA tax increment revenues were available to finance the City's
contributions to the Miami Port Tunnel project and the Museum Park improvements. Finally, the
agreement addressed the City's and County's Miami Marlins Major League Baseball project stadium and
related parking facilities built on the former Orange Bowl location site. To date, the total contributions
required to be made by the City for the Museum Park Improvement projects has not been determined. The
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
138
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
Revenue Refunding Bonds is City debt. As such the City is responsible for all debt service. However, the
OMNI CRA has agreed to provide the City with the required annual debt service. In the event the CRA
defaults on its commitment to the City, the City would be responsible to pay the debt service from legally
available funds. As of September 30, 2018, the total outstanding related debt for the Non -Ad Valorem
Revenue Refunding Bonds, Series (Port of Miami Tunnel Project) issued December 13, 2012 was
approximately $38.1 million.
FOP, Miami Lodge No. 20 and Alfredo Vega v. City of Miami, et al. This is an action by the Fraternal
Order of Police ("FOP") and individual law enforcement officers challenging the 1994 police sergeant's
examination seeking promotions retroactive to 1994, with back pay and emoluments. The testing
company was joined as a party but severed from the present proceedings. The trial court bifurcated the
action to address liability separate from damages. The liability portion of this case was tried in 2007, and
the trial court ruled that the exam did not comply with the Civil Service Rules. The parties are now in the
damages portion. The trial court has ruled that FOP did not have standing to recover any monetary relief,
thereby leaving the seven individual Plaintiffs and an additional individual who was permitted to
intervene. Additional union members intervened The Third District Court of Appeal affirmed the trial
court's order denying the FOP monetary relief. The City's potential exposure may exceed $1,000,000.
The first trial of an intervenor resulted in a verdict for the intervenor in the amount of $100,000.
Additional trials of intervenors will continue, subject to the City's ability to appeal and challenge the right
of intervention.
Fraternal Order of Police, Walter E. Headley, Jr., Miami Lodge No. 20 v. City of Miami, The FOP
Miami Lodge 20 (hereinafter the "Police Union") alleges that it has a Collective Bargaining Agreement
with the City, effective through September 30, 2010, that the parties exchanged initial proposals for a
successor agreement, and that the parties have held several bargaining sessions. The Police Union further
alleges that during the several bargaining sessions, the City never advised the Police Union that there was
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 on
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 unnoticed
"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
IRTC
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
PERC entered an Order on the Merits of the Unfair Labor Practice Charge and scheduled a back -pay
hearing in June 2018. Despite the pendency of the back -pay case, the FIPO Trust voted to disburse
adjusted pension payments to its members. The City filed an injunction and the Third District Court of
Appeal held that the FIPO Trust had no authority to make adjusted pension payments at that time, and
that neither the Florida Supreme Court decision in Headley, nor the October 18, 2017 PERC Order
rescinded the City's current pension code. The Third District Court of Appeal emphasized that only the
City has the authority to change its pension code, as appropriate, and, at the conclusion of the financial
urgency litigation proceedings. The Third District also affirmed the trial court's ruling abating the
proceedings pursuant to Chapter 164 of the Florida Statutes. Pursuant to the Court's opinion, the parties
should commence formal intergovernmental dispute resolution proceedings under Florida Statutes
Chapter 164. The FOP backpay case before the PERC began on June 18, 2018. FOP presented its case
and the parties agreed to close the record and attempt mediation. The parties have negotiated a settlement
agreement, which was approved by the City Commission on October 25, 2018. The settlement with the
FOP requires the City to pay $33 million, including backpay claims and increases to future pay and
pension benefits by the Police Union. The administration has settled this matter and accrued the amounts
due of $33.0 million as a long-term liability at fiscal year end.
International Association of Firefighters, Local 587 v. City of Miami, The IAF Local 587 (hereinafter
"Firefighters Union") alleges that it has a Collective Bargaining Agreement ("CBA") with the City,
effective through October 1, 2010, that, in exchange for concessions by the Firefighters Union, the CBA
was extended through September 30, 2011, and that the City expressly waived its right not to fund any
year of the CBA except in the case of "true fiscal emergency", defined in the CBA as, "the City must
demonstrate that there is no other reasonable alternative means of appropriating monies to fund the
agreement for that year or years". The Firefighters Union further alleges that less than six (6) months
after agreeing to the extension, on April 30, 2010, the City invoked the process under Section 447.4095,
Florida Statutes, claiming "financial urgency," and on August 31, 2010, unilaterally took action to modify
wages, insurance and pension benefits. The Firefighters Union asserts that the invocation of Section
447.4095, Florida Statutes was improper and was waived by the City in the CBA. Further, the
Firefighters Union alleges that, prior to their enactment, the modifications to the CBA were discussed in a
closed door, unnoticed "shade" meeting in violation of Section 447.605, Florida Statutes (an exemption to
the Sunshine Law). Finally, the Firefighters Union asserts that the City failed to bargain collectively and
in good faith by enacting the changes of August 31, 2010, by not providing the Firefighters Union with
notice in advance, and by failing to discuss, bargain over, impact bargain, or complete the process set
forth in Section 447.403 and/or Section 447.4095, Florida Statutes. The City received a recommended
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 outcome in Headley v. City of Miami. The
PERC entered an Order on the Merits of the Unfair Labor Practice Charge and scheduled a backpay
hearing in June 2018. The Firefighters Union backpay case before the PERC began on June 5, 2018. The
record was recessed so that the parties could attempt mediation. On October 11, 2018, the City
Commission approved a new labor contract and a settlement agreement with the Firefighters Union for
$20.5 million, including backpay claims and increases to future pay and pension benefits by the
Firefighters Union. The City has settled this matter and accrued payments due of $20.5 million as a long-
term liability at fiscal year end.
346 NW 29t' Street, LLC, et al. v. City of Miami, This is a class action for declaratory relief regarding
the City's obligations pursuant to Chapter 56, Article V, of the Code of the City of Miami. The city
commission, at its discretion, may grant, by ordinance, ad valorem tax exemptions to new and expanding
businesses located within enterprise zones. Qualifying new or expanding businesses were eligible to
receive an exemption up to 100% of the municipal portion of their real or personal property ad valorem
140
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
taxes. The Florida Statutes which enabled this exemption gave the right to all applicants to be considered
by the City Commission. If they were approved as qualified by the administration, they were entitled to
an up or down vote by the Commission. If the administration did not approve their application, they had a
right to appeal to the Commission. Unfortunately, approved applicants were not submitted and rejected
applicants were not advised of their right to appeal. The trial court certified the class and granted the
Plaintiff's motion for summary judgment on liability. On January 25, 2018, the City of Miami
Commission approved Resolution #18-0033 authorizing to pay an amount not to exceed $12,000,000 in
full settlement of any and all claims alleged against the City in the class action $2.0 million has been
accrued for the payment of attorney fees, additional claims will not be processed until plaintiffs present
their case before a magistrate.
Litigation
The City is involved in various lawsuits arising from the ordinary course of operations. Although the
outcome of these matters is not presently determinable, it is the opinion of management of the City based
upon consultation with legal counsel, that the outcome of these matters will not have an adverse material
effect on the financial position of the City beyond the amount accrued for its self-insured liability and the
amount accrued for estimated probable losses to date.
A third parry sued the City for breach of contract and is seeking damages of about $200 million. The trial
court bifurcated the case, conducted a non jury trial on liability, and found in favor of the third party on
liability. The damages trial is scheduled for April 2019. The damages sought by the third party include
actual damages to date and future consequential damages, as a result of the breach of contract. Based
upon consultation with legal counsel, the City has reported a probable loss for this matter and accrued a
liability. Management is unable to reasonably estimate additional losses, if any, but they could be
significant. The City continues to believe that it has meritorious defenses to the damages sought by the
third party in the trial court, which management believes is substantially overstated.
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 accordance with the City
fund balance policy.
The City has outstanding encumbrances in the governmental funds. The following is a summary of these
commitments at September 30, 2018.
Governmental Funds
Major Funds:
Other Capital projects
Impact Fee
Non Major Governmental Funds
141
28,696,830
7,816,499
19,791,563
56,304,892
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
NOTE 13. — SUBSEQUENT EVENTS
On October 15, 2018 The City of Miami entered in to a Settlement Agreement between FRATERNAL
ORDER OF POLICE, INC (FOP) and the CITY OF MIAMI in regard to September 21, 2010, charge,
Case No. CA -2010-119. In settlement of the FOP's damages claims, the City agreed to pay the total sum
of $33 million in damages to the affected bargaining unit members as follows; $15,500,000 in 2019, and
$2, 917,000 each year beginning October 1, 2020 through October 1, 2025.
On October 25, 2018 the City Commission adopted an ordinance to abolish The Miami Sports and
Exhibition Authority (MSEA) by amending section 18-72(A)(2) and 18-74(C)® of the procurement code
and transferring all asset and liabilities to the City; establishing a special revenue fund. MSEA's revenues
are solely garnered from rent collected from the lease of property to the Miami Children's Museum, a
seaplane base, and a heliport on Watson Island in accordance with an intermodal agreement between the
City and MSEA. The City will assume all obligations and liabilities of MSEA upon its abolishment.
On November 15, 2018, the City issued $57,405,000 Special Obligation Refunding Bonds, Series 2018A
for the purpose of providing funds, together with other available moneys to (i) refund all of the City's
outstanding Special Obligation Bonds, Series 2007 (Street and Sidewalk Improvement Program) and (ii)
pay the costs of issuance of the series 2008A Bonds. In addition, the City also issued $42,620,000
Taxable Special Obligation Refunding Series 2018B Bonds for the purpose of providing funds, together
with other available moneys to (i) current refund all of the City's outstanding Special Obligation Bonds,
Series 2009 (Street and Sidewalk improvement program) and (ii) pay the costs of issuance of the Series
2018B Bonds. Furthermore, the City issued $7,455,000 Taxable Special Obligation Revenue Series
2018C Bonds for the purpose of providing funds together with other available moneys to (i) finance the
cost of acquisition, construction, and improvements to certain roadways, drainage, Streetscapes and
related appurtenance and (ii) pay the costs of issuance of the Series 2018C Bonds.
On December 12, 2018, the City of Miami Commission approved $58 million of the $400 million Miami
Forever Bond voted by residents in November 2017. The $58 million will fund the first set of Miami
Forever Bond projects. The City of Miami will use the proceeds as follows: $10.3 million toward fighting
sea level rise, including a redesign of Brickell Bay Drive and the installation of 50 new one-way valves;
$15 million for new affordable housing projects and a single-family home rehabilitation program;
$420,000 for upgrades to Fire Station No. 10, $7.6 million to improve nearly 4 miles of roadways; and
$25.8 million to enhance the City's public parks, including upgrading playgrounds, repairing sidewalks,
and enhancing accessibility.
NOTE 14. — PRONOUNCEMENTS ISSUED, BUT NOT YET ADOPTED
GASB Statement No. 83, Certain Asset Retirement Obligations, this Statement will enhance
comparability of financial statements among governments by establishing uniform criteria for
governments to recognize and measure certain AROs, including obligations that may not have been
previously reported. This Statement also will enhance the decision -usefulness of the information provided
to financial statement users by requiring disclosures related to those AROs. The requirement of this
statement are effective for reporting periods beginning after September 30, 2018.
GASB Statement No. 84, Fiduciary Activities, this Statement establishes criteria for identifying
fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether
a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a
142
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and
postemployment benefit arrangements that are fiduciary activities. This Statement describes four fiduciary
funds that' should be reported, if applicable: (1) pension (and other employee benefit) trust funds, (2)
investment trust funds, (3) private -purpose trust funds, and (4) custodial funds. Custodial funds generally
should report fiduciary activities that are not held in a trust or equivalent arrangement that meets specific
criteria. The requirements of this Statement are effective for reporting periods beginning after December
15, 2018.
GASB issued Statement No. 87, Leases. The objective of this Statement is to better meet the information
needs of financial statement users by improving accounting and financial reporting for leases by
governments. This Statement increases the usefulness of governments' financial statements by requiring
recognition of certain lease assets and liabilities for leases that previously were classified as operating
leases and recognized as inflows of resources or outflows of resources based on the payment provisions
of the contract. It establishes a single model for lease accounting based on the foundational principle that
leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to
recognize a lease liability and an intangible right -to -use lease asset, and a lessor is required to recognize a
lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of
information about governments' leasing activities. The requirements of this Statement are effective for
reporting periods beginning after December 15, 2019.
GASB issued Statement No. 88, the objective of this Statement is to improve the information that is
disclosed in noes to government financial statements related to debt, including direct borrowing and direct
placements. This Statement defines debt for purpose of disclosure in notes to financial statements as
liabilities that arises from a contractual obligation to pay cash (or other assets that may be used in lieu of
cash) in one or more payments to settle an amount that is fixed at the date the contractual obligation is
established. The statement requires that additional information related to debt be disclosed in notes to
financial statements, including lines of credit; assets pledged as collateral for the debt; and terms specified
in debt agreements related to significand events of default with financial -related consequences, significant
termination events with fmancial-related consequences, and significant subjective acceleration clauses
This statement also requires that existing and additional information be provided for direct borrowings
and direct placements of debt separately from other debt. The requirements of this statement are effective
for reporting period beginning after June 15, 2018.
GASB issued Statement No. 90, the primary objectives of this Statement are to improve the consistency
and comparability of reporting a government's majority equity interest in a legally separate organization
and to improve the relevance of financial statement information for certain component units. The
requirements of this statement effective for reporting period beginning after December 15, 2018.
The City's management has not yet determined the effect these statements will have on the City's
financial statements.
143
CITY OF MIAMI, FLORIDA
NOTES TO FINANCIAL STATEMENTS
Member 30, 2018
NOTE 15. — RESTATEMENT OF FIDUCIARY NET POSITION
The October 1, 2017 City of Miami Fire Fighters' and Police Officers' Retirement Trust beginning net
position restricted for pension benefits was restated because it was determined that, although the Trust has
fiduciary oversight over the Deferred Retirement Option Program (DROP), DROP investments that were
previously reported as part of the Trust's assets are titled and held outside of the Trust and therefore
should not be included as Trust assets. Therefore, those assets were not available to pay pension benefits
as they were already paid into the DROP accounts. As a result of the correction of an error to the DROP
assets, the beginning net position restricted for pension benefits was restated to remove DROP
investments and the addition and deduction transactions related to the DROP Program.
The restatement of net position restricted for pension benefit is as follows:
Net position restricted for pension benefits - October 1, 2017 $ 1,732,531,765
Restatement (181,181,304)
Net position restricted for pension benefits - Octoberl, 2017 $ 1,551,350,461
The restatement does not impact the City's net pension liability or the actuarially determined contribution,
nor does it have any effect on the calculation of the actuarial obligation for the Plan, nor does it impact
the benefits paid to the members of the Plan.
144
Required SupplementarN Information
City of Miami, Florida
Schedule of Revenues, Expenditures and Changes In Fund Balance
Budget and Actual- General Fund
For The Year Ended September 30, 2018
(Unaudited)
Other Financing Sources (Uses):
Transfers In
Transfers Out
Proceeds from Sale of Property
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance- Beginning of Year
Fund Balance - End of Year
6,464,000 7,022,000 6,163,609 (858,391)
(72,077,000) (84,379,000) (82,653,000) 1,726,000
108,000 108,000 277,969 169,969
(65,505,000) (77,249,000) (76,211,422) 1,037,578
27,320,133 27,320,133
160,143,418 160,143,418
$ $S 1187,463,551 $ 187,463.551
145
Variance with
Budgeted Amounts
Final Budget
Actual
Positive
Original
Final
Amounts
(Negative)
Revenues:
Property Taxes
$ 325,976,000
$ 325,976,000
$ 325,267,816
$ (708,184)
Franchise and Other Taxes
110,344,000
110,344,000
113,992,902
3,648,902
Licenses and Permits
65,738,000
65,738,000
73,313,619
7,575,619
Fines and Forfeitures
15,743,000
15,743,000
13,887,391
(1,855,609)
Intergovernmental Revenues
67,662,000
67,662,000
69,954,774
2,292,774
Charges for Services
109,673,000
109,673,000
117,481,066
7,808,066
Investment Earnings (Loss)
2,500,000
2,500,000
5,808,378
3,308,378
Other
22,620,000
30,929,000
19,057,070
(11,871,930)
Total Revenues
720,256,000
728,565,000
738,763,016
10,198,016
Expenditures:
General Government
Mayor
1,333,000
1,415,000
1,303,929
(111,071)
Commissioners
3,602,000
3,602,000
3,287,269
(314,731)
City Manager
3,916,000
3,916,000
3,520,745
(395,255)
Agenda Coordination
397,000
397,000
370,961
(26,039)
City Clerk
1,753,000
1,753,000
1,781,705
28,705
Neighborhood Enhancement Team
6,514,000
6,542,000
6,387,763
(154,237)
Civil Service Board
428,000
428,000
379,525
(48,475)
Independent Auditor General
1,126,000
1,126,000
870,715
(255,285)
Communications
1,592,000
1,701,000
1,547,783
(153,217)
Human Resources
4,603,000
4,753,000
4,593,259
(159,741)
Innovation and Technology Department
10,956,000
11,024,000
11,193,794
169,794
City Attorney
8,418,000
8,678,000
8,555,927
(122,073)
Management and Budget
2,843,000
2,843,000
2,488,907
(354,093)
Procurement
2,701,000
2,701,000
2,528,273
(172,727)
Equal Opportunity B: Diversity Programs
438,000
438,000
410,397
(27,603)
Finance
8,873,000
8,873,000
8,709,603
(163,397)
Capital Improvements and Transportation
3,252,000
3,361,000
3,436,043
75,043
Grants Administration
1,741,000
1,741,000
1,666,781
(74,219)
Non -Departmental
55,051,000
45,252,000
36,266,112
(8,985,888)
Risk Management
2,920,000
2,920,000
2,926,977
6,977
Resiliency and Sustainability
785,000
785,000
499,186
(285,814)
Film and Entertainment
424,000
424,000
413,111
(10,889)
Veterans Affairs and Homeless Services
1,722,000
1,972,000
1,894,289
(77,711)
Total General Government
125,388,000
116,645,000
105,033,054
(11,611,946)
Planning and Development
Building
12,533,000
13,013,000
13,258,097
245,097
Planning
4,763,000
4,929,000
4,978,945
49,945
Zoning Department
2,305,000
2,526,000
2,376,439
(149,561)
Total Planning and Development
19,601,000
20,468,000
20,613,481
145,481
Public Works
Solid Waste
33,291,000
33,301,000
31,702,600
(1,598,400)
General Service Administration
23,067,000
23,067,000
23,577,396
510,396
Public Works and Sustainability
21,111,000
21,588,000
22,122,624
534,624
Total Public Works
77,469,000
77,956,000
77,402,620
(553,380)
Public Safety
Code Compliance
6,728,000
6,892,000
6,795,883
(96,117)
Fire -Rescue
130,864,000
133,011,000
132,215,386
(795,614)
Police
235,486,000
236,385,000
233,431,327
(2,953,673)
Total Public Safety
373,078,000
376,288,000
372,442,596
(3,845,404)
Real Estate and Asset Management
12,052,000
12,344,000
11,716,751
(627,249)
Community and Economic Development
2,411,000
1,668,000
1,566,902
(101,098)
Parks and Recreation
44,752,000
45,947,000
46,456,057
509,057
Total other Departmnets
59,215,000
59,959,000
59,739,710
(219,290)
Total Expenditures
654,751,000
651,316,000
635,231,461
(16,084,539)
Excess (Deficiency) of Revenues Over (Under) Expenditures
65,505,000
77,249,000
103,531,555
26,282,555
Other Financing Sources (Uses):
Transfers In
Transfers Out
Proceeds from Sale of Property
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance- Beginning of Year
Fund Balance - End of Year
6,464,000 7,022,000 6,163,609 (858,391)
(72,077,000) (84,379,000) (82,653,000) 1,726,000
108,000 108,000 277,969 169,969
(65,505,000) (77,249,000) (76,211,422) 1,037,578
27,320,133 27,320,133
160,143,418 160,143,418
$ $S 1187,463,551 $ 187,463.551
145
Notes to Required Supplementary Information
City of Miami, Florida
Year Ended September 30, 2018
(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 for
the Capital Project Funds. The Capital Project Funds are budgeted on a total project basis for which annual budgets are
not available. For governmental funds, budgets are prepared on a basis consistent with accounting principles generally
accepted in the United States of America.
B. Budget -Legal Compliance
The City follows these procedures in establishing the budgetary data reflected in the accompanying financial
statements:
• Prior to August 3151, 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 V. The
operating budget includes proposed expenditures and the means of financing them.
• The Mayor prepares and delivers a budgetary address annually to the people of the City between July I " and
September 30'.
• Such report is prepared after consultation with the City Manager.
• Public hearings are conducted to obtain taxpayer comments.
• Prior to October V, the budget is legally enacted through the passage of a resolution and adoption of the budget
report. Management may not make changes to the adopted budget without the approval of a majority vote of the
Commission.
• The Commission may transfer among departments any part of an unencumbered balance of an appropriation to a
purpose for which an appropriation for the current year has proved insufficient. At the close of each fiscal year,
the unencumbered balance of each appropriation reverts to the fund from which it was appropriated and is subject
to future appropriations.
• 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.
All budget amendments require City Commission approval. During fiscal year 2018, supplemental appropriations
totaling $8.9 million in the General Fund, comprised of a decrease in allocations of $3.4 million to General Fund
expenditures by departments and an increase of $12.3 million in Transfers -In. The Special Revenue Funds budget was
also increased in fiscal year 2018 by approximately $12.6 million, of which $2.4 million were allocated to Planning,
$1.1 million to Police Services, $391,000 to City Clerk, $1.1 million to Community Development, $98,900 to Parks
and Rec., $692,000 to General Special Revenue, $1.7 million to Public Works, $1.8 million to Transportation and
Transit, $275,000 to Fire Rescue, $3.3 million to Departmental Initiative, and a reduction to the Tree Trust Fund
$217,000. During fiscal year 2018, the General fund had expenditures of approximately $2.6 million attributable to
capital expenditures; these expenditures are budgeted at the department level and not reported separately on the General
Fund Budget to Actual Schedule of Revenues, Expenditures and Changes in Fund Balance presented on page 146.
146
Required Supplementary Information
City of Miami, Florida
Schedule of Changes in the Total OPEB Liability and Related Ratios
Retired Police Officers Other Post Employment Benefit
September 30, 2018
(Unaudited)
2018
Total OPEB liability
Service cost $ 18,643,389
Interest 16,174,180
Changes of benefit terms
Changes of assumptions (52,081,436)
Benefit payments (9,692,349)
Net Change in total OPEB liability (26,956,216)
Total OPEB liability - beginning 431,729,277
Total OPEB liability - ending $ 404,773,061
Covered payroll Not Available
City's Total OPEB liability as a percentage of
covered payroll Not Available
Note to Schedule:
This Schedule is presented to illustrate the requirement of GASB 75.
The City implemented GASB No.75 for the fiscal year ended September 30, 2018.
This Schedule will present 10 years as information becomes available.
147
Required Supplementary Information
City of Miami, Florida
Schedule of Changes in the Total OPEB Liability and Related Ratios
Other Than Police Officers Other Post Employment Benefit
September 30, 2018
(Unaudited)
Total OPEB liability
Service cost
Interest
Changes of benefit terms
Differences between expected and actual
experience
Changes of assumptions
Benefit payments
Net Change in total OPEB liability
Total OPEB liability - beginning
Total OPEB liability - ending
Covered payroll
City's Total OPEB liability as a percentage of
covered payroll
Note to Schedule:
2018
$ 11,604,247
7,543,984
(20,723,542)
(4,900,471)
(6,475,782)
198,669,236
$ 192,193,454
$ 154,355,815
125.00%
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.
148
Required Supplementary Information
City of Miami, Florida
Schedule of Changes in the Net Pension Liability and Related Ratios
Firefighters and Police (FIFO)
Last Five Fiscal Years
(Unaudited)
Total pension liability
Service cost
Interest
Changes of benefit terms
Differences between expected and actual
experience
Changes of assumptions
Benefit payments, including refunds of member
contributions
Net change in total pension liability
Total pension liability - beginning
Total pension liability - ending
Plan fiduciary net position
Contributions - employer
Contributions - member
Net investment income
Benefit payments, including refunds of member
contributions
Administrative expenses
Other
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending
City's net position liability
Covered payroll
Net pension liability as a percentage of covered
payroll
Update for
Update for
restatement 2018
restatement 2017
2016
2015
2014
$ 27,965,925
$ 26,279,333
$ 21,625,163
$ 19,203,823
$ 17,233,272
161,257,121
160,085,065
156,265,650
156,479,438
155,338,970
(122,641,436)
122,641,436
-
9,453,429
-
21,545,185
16,422,875
12,725,721
(16,970,540)
(6,638,755)
16,618,357
-
30,651,781
14,895,466
(194,663,548)
(182,692,360)
(166,203,470)
(165,535,327)
(139,860,276)
(89,918,396)
142,736,349
55,064,845
17,526,289
26,073,211
2,365,283,830
2,222,547,481
2,167,482,636
2,149,956,347
2,123,883,136
2,275,365,434
2,365,283,830
2,222,547,481
2,167,482,636
2,149,956,347
56,999,866
53,264,009
48,672,615
48,616,677
47,654,757
14,258,763
13,206,378
12,082,805
9,317,231
9,462,569
113,891,834
150,421,653
132,946,827
35,529,492
133,609,444
(194,663,548)
(182,692,360)
(166,203,470)
(165,535,327)
(139,860,276)
(2,086,709)
(2,058,797)
(2,029,168)
(2,222,561)
(2,086,240)
191,254
292,382
(42,726)
269,771
(42,726)
(11,408,540)
32,433,265
25,426,883
(74,024,717)
48,737,528
1,732,531,765
1,700,098,500
1,674,671,617
1,748,696,334
1,699,958,806
1,721,123,225
1,732,531,765
1,700,098,500
1,674,671,617
1,748,696,334
$ 554,242,209
$ 632,752,065
S 522,448,981
$ 492,811,019
$ 401,260,013
$ 141,497,840
$ 133,083,231
$ 106,278,378
$ 93,705,765
$ 85,222,842
391.70%
475.46%
491.59%
525.91%
470.84%
Note to Schedule:
This Schedule is presented to illustrate the requirement of GASB 68.
The City implemented GASB No.68 for the fiscal year ended September 30, 2015.
This Schedule will present 10 years as information becomes available.
149
Required Supplementary Information
City of Miami, Florida
Schedule of Changes in the Net Pension Liability and Related Ratios
General and Sanitation Employees (GESS)
Last Four Fiscal Years
(Unaudited)
Total pension liability
Service cost
Interest
Changes of benefit terms
Differences between expected and actual experience
Changes of assumptions
Benefit payments, including refunds of member
contributions
Net change in total pension liability
Total pension liability -beginning
Total pension liability- ending
Plan fiduciary net position
2018 2017 2016 2015
$ 12,906,853 $ 10,165,542 $ 9,234,478 $ 8,678,294
64,220,387 63,603,300 64,212,607 64,248,602
10,997,320 8,476,546 (8,035,778)
64,620,251 (421,932) -
(73,580,735) (73,827,066) (73,029,933) (73,771,095)
79,164,076 7,996,390 (7,618,626) (844,199)
881,795,448 873,799,058 881,417,684 882,261,883
960,959,524 881,795,448 873,799,058 881,417,684
Contributions - employer
34,355,719
32,881,500
33,036,318
30,710,096
Contributions - member
11,081,234
9,595,465
8,163,643
7,231,235
Net investment income
78,645,544
60,237,354
1,496,395
65,272,884
Benefit payments, including refunds ofinember contributions
(73,580,735)
(73,827,066)
(73,029,933)
(73,771,095)
Administrative expenses
(352,230)
(233,337)
(176,693)
(265,995)
Other
-
-
-
-
Net change in plan fiduciary net position
50,149,532
28,653,916
(30,510,270)
29,177,125
Plan fiduciary net position - beginning
617,704,941
589,051,025
619,561,295
590,384,170
Plan fiduciary net position - ending
667,854,473
617,704,941
589,051,025
619,561,295
City's net position liability
$ 293,105,051
$ 264,090,507
$ 284,748,033
$ 261,856,389
Covered payroll
$ 97,373,080
$ 81,069,095
$ 71,924,747
$ 66,370,246
Net pension liability as a percentage of covered payroll
301.01%
325.76%
395.90%
394.54%
Note to Schedule:
This Schedule is presented to illustrate the requirement of GASB 68.
The City implemented GASB No.68 for the fiscal year ended September 30, 2016.
This Schedule will present 10 years as information becomes available.
150
Required Supplementary Information
City of Miami, Florida
Schedule of Changes in the Net Pension Liability and Related Ratios
General and Sanitation Employees Excess Benefit Plan (GESE Excess)
Last Four Fiscal Years
(Unaudited)
Total pension liability
Service cost
Interest
Changes of benefit terms
Differences between expected and actual experience
Changes of assumptions
Benefit payments, including refunds of member
contributions
Net change in total pension liability
Total pension liability - beginning
Total pension liability - ending
Plan fiduciary net position
Contributions - employer
Contributions - member
Net investment income
Benefit payments, including refunds of member contributions
Administrative expenses
Other
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending
City's net position liability
Covered -employee payroll
Net pension liability as a percentage of covered -employee payroll
2018
2017
2016
2015
385,137
469,106
392,659
427,362
(1,948,114)
(516,393)
3,177,002
763,199
(92,094)
1,459,230
-
-
(674,572)
(680,534)
(653,302)
(556,805)
(2,329,643)
731,409
2,916,359
633,756
13,481,890
12,750,481
9,834,122
9,200,366
11,152,247
13,481,890
12,750,481
9,834,122
674,572
680,534
648,302
561,805
(674,572)
(680,534)
(653,302)
(556,805)
5,000
(5,000)
$ 11,152,247
S 13,481,890
$ 9,834,122
S 12,750,481
$ 97,373,080
$ 81,069,095
$ 71,924,747
$ 66,370,246
11.45%
16.63%
17.73%
14.82%
Note to Schedule:
This Schedule is presented to illustrate the requirement of GASB 68.
The City implemented GASB No.68 for the fiscal year ended September 30, 2016.
This Schedule will present 10 years as information becomes available.
151
Required Supplementary Information
City of Miami, Florida
Schedule of Changes in the Net Pension Liability and Related Ratios
General and Sanitation Employees Staff Trust Plan (GESE Staff)
Last Four Fiscal Years
(Unaudited)
Total pension liability
Service cost
Interest
Changes of benefit terms
Differences between expected and actual experience
Changes of assumptions
Benefit payments, including refunds of member contributions
Net change in total pension liability
Total pension liability - beginning
Total pension liability - ending
Plan fiduciary net position
Contributions - employer
Contributions - member
Net investment income
Benefit payments, including refunds of member contributions
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending
City's net position liability
Covered -employee payroll
Net pension liability as a percentage of covered -employee payroll
2018
2017
_ 2016
2015
$ 52,832
S 45,464
S 43,416
$ 77,022
320,492
365,280
353,121
345,755
460,951
-
-
-
10,440
(686,043)
99,869
-
105,798
-
-
-
(295,460)
(332,554)
(340,299)
(311,388)
655,053
(607,853)
156,107
111,389
4,364,739
4,972,592
4,816,485
4,705,096
5,019,792
4,364,739
4,972,592
4,816,485
247,449
269,054
291,087
291,968
24,542
19,316
19,838
23,377
438,774
364,079
(15,614)
338,281
(295,460)
(332,554)
(340,299)
(311,388)
415,305
319,895
(44,988)
342,238
3,465,231
3,145,336
3,190,324
2,848,086
3,880,536
3,465,231
3,145,336
3,190,324
S 1,139,256
S 899,508
S 1,827,256
$ 1,626,161
S 225.148
S 172,459
$ 164,547
$ 298,958
506.00%
521.58%
1110.48%
543.94%
Note to Schedule:
This Schedule is presented to illustrate the requirement of GASB 68.
The City implemented GASB No.68 for the fiscal year ended September 30, 2016.
This Schedule will present 10 years as information becomes available.
152
Required Supplementary Information
City of Miami, Florida
Schedule of Changes in the Net Pension Liability and Related Ratios
Elected Officers Retirement Trust (EORT)
Last Five Fiscal Years
(Unaudited)
Total pension liability
Service cost
Interest
Changes of benefit terms
Differences between expected and actual
experience
Changes of assumptions
Benefit payments, including refunds of member
contributions
Net change in total pension liability
Total pension liability - beginning
Total pension liability - ending
Plan fiduciary net position
Contributions - employer
Contributions - member
Net investment income
Benefit payments, including refunds of member
contributions
Administrative expenses
Other
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending
City's net position liability
Covered -employee payroll
Net pension liability as a percentage of covered -
employee payroll
2018
2017
2016
2015
2014
$ -
$ -
$ 88,956
$ 98,028
$
257,052
319,429
317,610
316,813
304,126
308,476
(199,276)
53,460
(2,221)
(20,969)
(250,718)
-
-
228,310
(325,800)
(318,754)
(263,320)
(260,660)
(261,135)
(205,647)
52,316
140,228
348,835
53,675
8,694,583
8,642,267
8,502,039
8,153,204
8,099,529
8,488,936
8,694,583
8,642,267
8,502,039
8,153204
553,471
406,911
860,089
551,222
-
47,166
54,780
42,971
61,789
(19,893)
(325,800)
(318,754)
(263,320)
(260,660)
(261,135)
(2,400)
(2,400)
(2,400)
(2,400)
(2,400)
272,437
140,537
637,340
349,951
(283,428)
7,102,802
6,962,265
6,324,925
5,974,974
6,258,402
$ 7,375,239
$ 7,102,802
$ 6,962,265
$ 6,324,925
$
5,974,974
$ 1,113,697
$ 1,591,781
$ 1,680,002
S 2,177,114
$
2,178,230
$ -
$ -
$ 100,788
$ 103,194
$
298,788
N/A
N/A
1666.87%
2109.73%
729.02%
Note to Schedule:
This Schedule is presented to illustrate the requirement of GASB 68.
The City implemented GASB No.68 for the fiscal year ended September 30, 2015.
This Schedule will present 10 years as information becomes available.
153
City of Miami, Florida
Schedule of Contributions - FIPO
September 30, 2018
(Unaudited)
Actuarially determined contribution
Contributions made in relation to the actuarially determined
contribution
Contribution deficiency (excess)
Covered -payroll
Contributions as a percentage of
covered -payroll
FY 2018 FY 2017
$ 56,999,866 $ 53,264,009
56,999,866 53,264,009
$ - $ -
$ 148,949,683 $ 141,497,840
38.27% 37.64%
$
$
$
FY 2016
48,672,615
48,672,615
-
133,083,231
36.57%
$
$
$
FY 2015
48,616,677
48,616,677
-
106.278.378
45.74%
$
$
$
FY 2014
47,305,679
47,305,679
-
93,705,765
50.49%
FY 2013 FY 2012
FY 2011
FY 2010
FY 2009
Actuarially determined contribution
$ 45,4121248 $ 47,418,316
$
47,156,797
$
59,025,379
$
36,993,395
Contributions made in relation to the actuarially determined
contribution
45,412,248 47,418,316
47,156,797
59,025,379
36,993,395
Contribution deficiency (excess)
$ - $ -
$
-
$
-
$
-
Covered -payroll
$ 85,222,842 $ 82,205,838
$
82,164,617
$
80,152,355
$
122,212,346
Contributions as a percentage of
covered -payroll
53.29% 57.68%
57.39%
73.64%
30.27%
The following actuarial methods and assumptions were used to determine contribution rates for Fiscal Year 2018, as reported
in the Schedule of Contributions above:
Valuation date:
October 1, 2017
Actuarial cost method:
Entry Age Method
Asset valuation method:
20% Write -Up Method: Expected actuarial value of
assets, adjusted by 20% of the difference between
expected actuarial value and actual market value
(net of pending transfers to the COLA Fund)
Actuarial Assumptions:
Interest rates
7.34% net of investment expenses
Inflation
3.25%
Projected salary increases
1.5% for promotions and other increase plus salary
merit
Expense and or Contingency Loading
$2,128,469
City of Miami, Florida
Schedule of Contributions - GESE
September 30, 2018
(Unaudited)
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
$ 23,191,828
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
65,509,421
$ 70,825,712
$
92,746,558
$ 93,703,886
covered -payroll
36.79%
35.28%
40.56%
45.93%
46.27%
FY 2013
FY 2012
FY 2011
FY 2010
FY 2009
Actuarially determined contribution
$ 25,568,193 $
25,784,849
$ 20,420,995
$
24,037,093
$ 23,191,828
Contributions made in relation to the actuarially determined
contribution
25,568,193
25,784,849
20,420,995
$
24,037,093
23,191,828
Contribution deficiency (excess)
$ - $
-
$ -
$
-
$ -
Covered -payroll
$ 64,391,195 $
65,509,421
$ 70,825,712
$
92,746,558
$ 93,703,886
Contributions as a percentage of
covered -payroll
39.71%
39.36%
28.83%
25.92%
24.75%
The following actuarial methods and assumptions were used to determine contribution rates for Fiscal Year 2018, as reported
in the Schedule of Contributions above:
Valuation date:
October 1, 2016
Actuarial cost method:
Entry Age Normal
Amortization method:
Level percent, closed
Remaining amortization period:
6 to 20 years
Asset valuation method:
5 -Year Smoothed Market
Actuarial Assumptions:
Investment rate of return
7.6%
Projected salary increases
4% to 8.75%
Payroll Growth
3.0%
Includes inflation at
3.5%
City of Miami, Florida
Schedule of Contributions - GESE Excess
September 30, 2018
(Unaudited)
Contributions as a percentage of
covered -payroll
0.81% 0.79% 0.57%
2018
to determine contribution rates for Fiscal Year 2018, as
FY 2017
FY 2016
October 1, 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
4% to 8.75%
Includes inflation at
3.5%
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%
FY 2013
FY 2012
FY 2011
FY 2010
FY 2009
Actuarially determined contribution
$
665,659
$
606,589
$
585,357
$
625,539
$ 566,046
Contributions made in relation to the actuarially determined
contribution
523,398
514,908
406,243
339,602
464,325
Contribution deficiency (excess)
$
142,261
$
91,681
$
179,114
$
285,937
$ 101,721
Covered -payroll
$
64,391,195
$
65,509,421
$
70,825,712
$
92,746,558
$ 93,703,886
Contributions as a percentage of
covered -payroll
0.81% 0.79% 0.57%
The following actuarial methods and assumptions were used
to determine contribution rates for Fiscal Year 2018, as
reported in the Schedule of Contributions above:
Valuation date:
October 1, 2016
Actuarial cost method:
Entry Age Normal
Amortization method:
Level dollar amounts, closed
Remaining amortization period:
14 years
Asset valuation method:
Not Applicable, the plan has no assets for investment
Actuarial Assumptions:
Investment rate of return
7.60%
Projected salary increases
4% to 8.75%
Includes inflation at
3.5%
0.37% 0.50%
Actuarially determined contribution
Contributions made in relation to the actuarially determined
contribution
Contribution deficiency (excess)
Covered -payroll
Contributions as a percentage of
covered -payroll
City of Miami, Florida
Schedule of Contributions - GESE Staff
September 30, 2018
(Unaudited)
2018
FY 2017
FY 2016
FY 2015
FY 2014
$ 233,242
$ 247,449
$ 269,054
$ 291,087
$ 291,968
233,242247,449
$ 159,837
269,054
291,087
291,968
$ -
$ -
$ -
$ -
$ -
$ 280,425
$ 225,148
$ 172,459
$ 164,547
$ 298,958
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 2018, as
FY 2013
FY 2012
FY 2011
FY 2010
FY 2009
Actuarially determined contribution
$ 219,774
$ 226,793
$ 164,490
$ 132,542
$ 159,837
Contributions made in relation to the actuarially determined
Actuarial Assumptions:
Investment rate of return
7.609
Projected salary increases
contribution
219,774
226,793
164,490
133,487
159,837
Contribution deficiency (excess)
$ -
$ -
$ -
$ (945)
$ -
Covered -payroll
$ 354,937
$ 735,056
$ 842,955
$ 738,898
$ 632,259
Contributions as a percentage of
covered -payroll
61.92%
30.85%
19.51%
18.07%
25.28%
The following actuarial methods and assumptions were used to determine contribution rates for Fiscal Year 2018, as
reported in the Schedule of Contributions above:
Valuation date:
October 1, 2016
Actuarial cost method:
Entry Age Normal
Amortization method:
Level dollar amounts, closed
Remaining amortization period:
1 to 20 years
Asset valuation method:
3 year smoothed market
Actuarial Assumptions:
Investment rate of return
7.609
Projected salary increases
6.009
Includes inflation at
3.509
Citv of Miami, Florida
Schedule of Contributions - EORT
September 30, 2018
(Unaudited)
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
1,054,965
432,170
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
460.04%
Actuarial valuation reports prior to 2010 are not available.
covered -payroll
N/A
N/A 853.36%
534.16%
0.00%
FY 2013
FY 2012
FY 2011
Actuarially determined contribution
$ 488,713
$ 566,252
$ 431,995
Contributions made in relation to the actuarially determined
contribution
1,054,965
432,170
962,677
Contribution deficiency (excess)
$ (566,252)
$ 134,082
$ (530,682)
Covered -payroll
$ 335,952
$ 209,260
$ 209,260
OD
Contributions as a percentage of
covered -payroll
314.02%
206.52%
460.04%
Actuarial valuation reports prior to 2010 are not available.
The following actuarial methods and assumptions were used to determine contribution rates for Fiscal Year 2018, as
reported in the Schedule of Contributions above:
Valuation date:
January 1, 2018
Actuarial cost method:
Entry Age Normal
Amortization method:
Level dollar, closed
Remaining amortization period:
5 to 9 years
Equivalent single amortization period:
8 years
Asset valuation method:
Market Value
Actuarial Assumptions:
Investment rate of return
3.75%
Projected salary increases
None
Payroll Growth
None
Includes inflation at
2.50%
Cost of living adjustments
None
81
City of Miami, Florida
Schedule of Investment Returns
September 30, 2018
(Unaudited)
Annual money -weighted rate of return, net of investment expense
Note to Schedule:
(a) The GESE Excess Plan has no assets.
This Schedule is presented to illustrate the requirement of GASB 68.
This Schedule will present 10 years as information becomes available.
General and
General and
Elected
Firefighters
General and
Sanitation
Sanitation
Officers
and
Sanitation
Employees
Employees
Retirement
Year Ended
Police
Employees
Excess Benefit
Staff Trust Plan
Trust
September 30,
(FIPO)
(GESE)
(GESE Excess Plan)
(GESE Staff Plan)
(EORT)
2018
9.58%
13.20%
Not applicable (a)
12.90%
0.68%
2017
9.22%
10.60%
Not applicable (a)
11.80%
0.81%
2016
9.70%
0.23%
Not applicable (a)
-0.40%
0.65%
2015
1.84%
11.20%
Not applicable (a)
12.10%
0.93%
Note to Schedule:
(a) The GESE Excess Plan has no assets.
This Schedule is presented to illustrate the requirement of GASB 68.
This Schedule will present 10 years as information becomes available.
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for special revenues that are legally restricted
to expenditures for specified purposes.
Community Redevelopment Agency (OMNI CRA)
To account for revenues and expenditures to be used for general operations in the defined
OMNI Community Redevelopment Area.
Community Redevelopment Agency (Midtown CRA)
To account for revenues and expenditures to be used for special operations in the defined
Midtown Community Redevelopment Area.
Community Redevelopment Agency (SEOPW)
To account for revenues and expenditures to be used for special operations in the defined
Southeast Overtown Park West Community Redevelopment Area.
Homeless Program
To account for the activities of the City's homeless program.
Community Development
To account for the proceeds from the Federal government under the U.S. Department of
Housing and Urban Development.
Housing Choice Vouchers
To account for the monies received for administration and assistance to be provided in
accordance with Section 8 of the U.S. Housing Act of 1937, as amended under the Choice
Housing Voucher Program.
State Housing Initiatives Program (SHIP)
To account for the monies received from the State of Florida Housing Finance Corporation
to used to provide home ownership and rental housing programs at the local level.
Convention Center
To account for the operations of the City of Miami/ University of Miami James L. Knight
International Center and Parking Garage.
160
SPECIAL REVENUE FU14DS
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
161
General Special Revenue
To account for activities that are designated as special revenue which do not fall into one of
the previous special revenue categories.
Departmental Improvement Initiatives
To account for the funds designated for the City of Miami initiatives related to quality of life
and technology.
Transportation and Transit
To account for the operations of the City's transit and transportation projects.
Miami Ballpark Parking Facility
To account for the operations of the Miami Ballpark Parking Facility.
Liberty City Revitalization Trust
To account for the revitalization efforts for the redevelopment of the Liberty City Community
Revitalization District.
Virginia Key Beach Park Trust
To account for the activities to preserve, restore, and maintain the Historic Virginia Key
Beach Park.
Solid Waste Recycling Trust
To account for funds received through the recycling program that are utilized to pay for
scholarships annually to educational institutions for Solid Waste employees and for the
children or legal dependents of Solid Waste employees.
Bayront/Riverfront Land Acquisition Rouse Trust
To account for the acquisitiion of real property adjacent to the Miami River and Biscayne
Bay in order to provide public access and public enjoyment of those waterbodies.
162
DEET SERVICE FSS
Debt Service Funds are used to account for the accumulation of resources, payments of
general obligation bond principal, interest from government resources, special obligation
bond principal and interest from pledged revenues when the government is obligated in
some manner for the payment.
General Obligation Bonds
To account for monies for payment of principal, interest, and other costs related to various
issues of long-term general obligation bonds. Debt Service is financed primarily by an ad
valorem tax.
SEOPW CRA Other Special Obligation Bonds
To account for monies for payment of principal, interest, and other costs related to various
CRA special obligation bonds and loans.
Special Obligations Bonds
To account for monies used for the payment of principal, interest, and other costs related to
various special obligation and revenue bonds and loans.
163
CAPITAL PROJECTS FUNDS
Capital Projects Funds are used to account for the acquisition and construction of major
capital facilities.
SEOPW Community Redevelopment Agency
To account for the acquisition or construction of major capital facilities for community
redevelopment in the defined Community Redevelopment Area.
Transportation and Transit
To account for expenditures for the improvement to infrastructure that enhances
transportation options, improves safety, and increases mobility within city limits.
General Obligation Bond Projects (G.O.B.)
To account for the receipt and disbursement of bond proceeds from general obligation
debt to be used for constructions and/or acquisition activities for the City.
Special Obligation Bond Projects (S.O.B.)
To account for the receipt and disbursement of bond proceeds from special obligation debt
and loan agreements to be used for constructions and/or acquisition activities for the City.
164
Assets
Pooled Cash, Cash Equivalents, and Investments
Restricted Cash, Cash Equivalents, and Investments
Receivables (Net of Allowance for Uncollectibles):
Loans Receivable
Accounts Receivable
Property Tax
Due From Other Governments
Accrued Interest
Prepaids
Other Assets
Total Assets
Liabilities, Fund Balances and Deferred Inflows of
Resources
Liabilities:
Accounts Payable and Accrued Liaibilities
Other Liabilities
Due to Other Funds
Due to Other Governments
Deposits
Total Liabilities
Deferred Inflows of Resources
Unavailable Revenue - Other
Total Deferred Inflows of Resources
City of Miami, Florida
Combining Balance Sheet
Non -Major Governmental Funds
September 30, 2018
Housing
Homeless Community Choice
Omni CRA SEOPW CRA Program Development Vouchers
$ 6,479,869 $ 25,043,157 $ - $ 15,376,083 $ 90,239
- -
- 1,794 -
- 270,000
- 655 -
- 405,383
145,934 2,040,171 -
39,829 81,220
- 7,511 (26)
- -
- - 4,221
5,020 312,409
- -
$6,524,718 $ 26,112,169
$ 145,934 $ 17,426,214 $ 94,434
207,856 2,058,561 106,889 1,679,697 7,721
- - - 4,224 -
71.582 - -
- - 1,619,490 -
14,961 - 87,682 -
207,856 2,073,522 178,471 3,391,093 7,721
Fund Balances (Deficit):
Non -Spendable Fund Balance
Non Spendable
- - - - 4,221
Spendable Fund Balance
Restricted
6,316,862 24,038,647 - 14,035,021 82,492
Committed
- - - - -
Assigned
- - - - -
Unassigned (deficit)
- - (32,537) - -
Total Fund Balances (Deficit)
6,316,862 24,038,647 (32,537) 14,035,121 86,713
Total Liabilities, Deferred Inflows of Resources and
Fund Balances
$ 6,524,718 $ 26,112,169 $ 145,934 $ 17,426,214 $ 94,434
165
Assets
Pooled Cash, Cash Equivalents, and Investments
Restricted Cash, Cash Equivalents, and Investments
Receivables (Net of Allowance for Uncollectibles):
Loans Receivable
Accounts Receivable
Property Tax
Due From Other Governments
Accrued Interest
Prepaids
Other Assets
Total Assets
Liabilities, Fund Balances and Deferred Inflows of
Resources
Liabilities:
Accounts Payable and Accrued Liaibilities
Other Liabilities
Due to Other Funds
Due to Other Governments
Deposits
Total Liabilities
Deferred Inflows of Resources
Unavailable Revenue - Other
Total Deferred Inflows of Resources
City of Miami, Florida
Combining Balance Sheet
Non -Major Governmental Funds
September 30, 2018
Special Revenue
Funds
Economic
Development Parks &
Convention & Planning Recreation
SHIP Center Services NET Offices Services
$ 1,696,937 $ 368 $ 16,626,848 $ 1,726,786 $ 3,062,056
13,000 20,452 228
- - - - 8,464
1,429 - - - -
$ 1,698,366 $ 368 $ 16,639,848 $ 1,747,238 $ 3,070,748
18,285 605 111,272 9,228 48,256
- - - 324 -
18.285 605 111,272 9,552 48,256
Fund Balances (Deficit):
Non -Spendable Fund Balance
Non Spendable -
- -
-
-
Spendable Fund Balance
Restricted 1,680.081
- 2,824,486
84,472
1,538,772
Committed -
- 11,839,690
1,641,058
1,044,813
Assigned -
- 1,864,400
12,156
438,907
Unassigned (deficit) -
(237) -
-
-
Total Fund Balances (Deficit) 1,680,081
(237) 16,528,576
1,737,686
31022,492
Total Liabilities, Deferred Inflows of Resources and
Fund Balances $ 1,698,366
$ 368 $ 16,639,848
$ 1,747,238
$ 3,070,748
166
Assets
Pooled Cash, Cash Equivalents, and Investments
Restricted Cash, Cash Equivalents, and Investments
Receivables (Net of Allowance for Uncollectibles):
Loans Receivable
Accounts Receivable
Property Tax
Due From Other Governments
Accrued Interest
Prepaids
Other Assets
Total Assets
Liabilities, Fund Balances and Deferred Inflows of
Resources
Liabilities:
Accounts Payable and Accrued Liaibilities
Other Liabilities
Due to Other Funds
Due to Other Governments
Deposits
Total Liabilities
Deferred Inflows of Resources
Unavailable Revenue- Other
Total Deferred Inflows of Resources
City of Miami, Florida
Combining Balance Sheet
Non -Major Governmental Funds
September 30, 2018
Special Revenue
Funds
Law
Enforcement Public Works City Clerk Fire Rescue
Police Services Trust Services Services Services
$ 6,921,528 $ 1,126,118 $ 12,574,869 $ 1,204,976 $ 1,720,060
861,518 - 13,680 - 80
1,252,368 - - - 4,056,134
6,688 3,119 485 - 143
419 - - - 21,897
$ 9,042,521 $ 1,129,237 $ 12,589,034 $ 1,204,976 $ 5,798,314
620,215 39,565 1,069.871 1,128 1,132,110
694,385 - - - 2,084,230
112,413 -
1,314,600 151,978 1069.871 1.128 31216,340
317,000 - - -
317,000 - -
Fund Balances (Deficit):
Non -Spendable Fund Balance
Non Spendable
419
- -
- 21,897
Spendable Fund Balance
Restricted
3,807,517
977,259 589,254
- 2,560,077
Committed
3,602,985
- 10,929,909
1,203,848 -
Assigned
-
- -
- -
Unassigned (deficit)
-
- -
- -
Total Fund Balances (Deficit)
7,410,921
977,259 11,519,163
1,203,848 2,581,974
Total Liabilities, Deferred Inflows of Resources and
Fund Balances
$ 9,042,521
$ 1,129,237 $ 12,589,034
$ 1,204,976 $ 5,798,314
167
Assets
Pooled Cash, Cash Equivalents, and Investments
Restricted Cash, Cash Equivalents, and Investments
Receivables (Net of Allowance for Uncollectibles):
Loans Receivable
Accounts Receivable
Property Tax
Due From Other Governments
Accrued Interest
Prepaids
Other Assets
Total Assets
Liabilities, Fund Balances and Deferred Inflows of
Resources
Liabilities:
Accounts Payable and Accrued Liaibilities
Other Liabilities
Due to Other Funds
Due to Other Governments
Deposits
Total Liabilities
Deferred Inflows of Resources
Unavailable Revenue - Other
Total Deferred Inflows of Resources
City of Miami, Florida
Combining Balance Sheet
Non -Major Governmental Funds
September 30, 2018
Special Revenue
Funds
Miami
General Departmental Ballpark Liberty City
Special Improvement Transportation Parking Revitalization
Revenues Initiatives & Transit Facilities Trust
$ 1,040,663 $ 10,507,349 $ 1,669,503 $ 2,402,084 $ 235,075
298,564 - 2,021,798 -
62,316 189,200 5,689,916 - -
- - 19,494 - 71
$ 1,102,979 $ 10,995,113 $ 7,378,913 $ 4,423,882 $ 235,146
254,648
327,031
1,062,503
303,135
1,547
- - - - -
Spendable Fund Balance
Restricted
848.431 5,843,190 31716.410 4,120,747 233,599
254,648
327,031
1,062,503
303,135
1,547
- /,ovv,vvv -
- 2,600,000 - -
Fund Balances (Deficit):
Non -Spendable Fund Balance
Non Spendable
- - - - -
Spendable Fund Balance
Restricted
848.431 5,843,190 31716.410 4,120,747 233,599
Committed
- 4,824,892 - - -
Assigned
- - - -
Unassigned (deficit)
- - - - -
Total Fund Balances (Deficit)
848,331 10,668,082 3,716,410 4,120,747 233,599
Total Liabilities, Deferred Inflows of Resources and
Fund Balances
$ 1,102,979 $ 10,995,113 $ 7,378,913 $ 4,423,882 $ 235,146
168
Assets
Pooled Cash, Cash Equivalents, and Investments
Restricted Cash, Cash Equivalents, and Investments
Receivables (Net of Allowance for Uncollectibles):
Loans Receivable
Accounts Receivable
Property Tax
Due From Other Governments
Accrued Interest
Prepaids
Other Assets
Total Assets
Liabilities, Fund Balances and Deferred Inflows of
Resources
Liabilities:
Accounts Payable and Accrued Liaibilities
Other Liabilities
Due to Other Funds
Due to Other Governments
Deposits
Total Liabilities
Deferred Inflows of Resources
Unavailable Revenue - Other
Total Deferred Inflows of Resources
City of Miami, Florida
Combining Balance Sheet
Non -Major Governmental Funds
September 30, 2018
Special Revenue Debt Service
Funds Funds
Virginia Key Bayfront Park General
Beach Park Solid Waste Land Acquisition Total Special Obligation
Trust RecyclingTrust Trust Fund Revenue Bonds
$ 124,619 $ 1,109,248 $ 1,420,000 $ 112,158,435 $ -
26,127 - - 26,127 9,364,475
1,794 -
3,499,975 61,362
- - - - 216,844
7,350 - - 13,857,236 -
114 1,558 - 161,635 -
- - - 26,537 -
- - - 317,429 -
$ 158,210 $ 1,110,806 $ 1,420,000 $ 130,049,168 $ 9,642,681
831,308 - - 9,143,431 -
- - 4,224 -
- - 2,850,197 -
- - 1,619,490 -
- - - 215,380 -
83.308 - - 13,832,722 -
- - - 2,917,000 216,844
- 2,917,000 216,844
Fund Balances (Deficit):
Non -Spendable Fund Balance
Non Spendable
- 1,000,000
- 1,026,537 -
Spendable Fund Balance
Restricted
74,902 -
- 73,372,219 9.425,837
Committed
- 110,806
1,420,000 36,618,001 -
Assigned
- -
- 2,315,463 -
Unassigned (deficit)
- -
- (32,774) -
Total Fund Balances (Deficit)
74,902 1,110,806
1,420,000 113,299,446 9,425,837
Total Liabilities, Deferred Inflows of Resources and
Fund Balances
$ 158,210 $ 1,110,806
$ 1,420,000 $ 130,049,168 $ 9,642,681
169
Assets
Pooled Cash, Cash Equivalents, and Investments
Restricted Cash, Cash Equivalents, and Investments
Receivables (Net of Allowance for Uncollectibles):
Loans Receivable
Accounts Receivable
Property Tax
Due From Other Governments
Accrued Interest
Prepaids
Other Assets
Total Assets
Liabilities, Fund Balances and Deferred Inflows of
Resources
Liabilities:
Accounts Payable and Accrued Liaibilities
Other Liabilities
Due to Other Funds
Due to Other Governments
Deposits
Total Liabilities
Deferred Inflows of Resources
Unavailable Revenue - Other
Total Deferred Inflows of Resources
City of Miami, Florida
Combining Balance Sheet
Non -Major Governmental Funds
September 30, 2018
Debt Service Capital Projects
Funds Funds
CRA Other
Special Community
Obligation Special Obligation Total Debt Redevelopment Transportation
Bonds Bonds Service Agency & Transit
2,555,642 31,809,983 43,730,100 24,804,693 32,463,411
333,333 394,695 - -
- 216,844 - -
$ 2,555,642 $ 32,143,316 $ 44,341,639 $ 24,804,693 $ 32,463,411
38,899 38,899 - 1,150,625
38,899 38,899 - 1,150,625
216,844 - -
216,844 - -
Fund Balances (Deficit):
Non -Spendable Fund Balance
Non Spendable - - - - -
Spendable Fund Balance
Restricted 2,555,642 32,104.417 44,085,896 24,8047693 31,312.786
Committed - - - - -
Assigned - - - -
Unassigned (deficit) - - - - -
Total Fund Balances (Deficit) 2,555,642 32,104,417 44,085,896 24,804,693 31,312,786
Total Liabilities, Deferred Inflows of Resources and
Fund Balances $ 2,555,642 $ 32,143,316 $ 44,341,639 $ 24,804,693 $ 32,463,411
170
Assets
Pooled Cash, Cash Equivalents, and Investments
Restricted Cash, Cash Equivalents, and Investments
Receivables (Net of Allowance for Uncollectibles):
Loans Receivable
Accounts Receivable
Property Tax
Due From Other Governments
Accrued Interest
Prepaids
Other Assets
Total Assets
Liabilities, Fund Balances and Deferred Inflows of
Resources
Liabilities:
Accounts Payable and Accrued Liaibilities
Other Liabilities
Due to Other Funds
Due to Other Governments
Deposits
Total Liabilities
Deferred Inflows of Resources
Unavailable Revenue - Other
Total Deferred Inflows of Resources
City of Miami, Florida
Combining Balance Sheet
Non -Major Governmental Funds
September 30, 2018
Capital Projects
Funds
$ - $ - $ - $ 112,158,435
13,118,842 1,499,482 71,886,428 115,642,655
- 1,794
- 3,894,670
- 216,844
- - - 13,857,236
30,104 21,231 51,335 212,970
- - - 26,537
- - - 317,429
$ 13,148,946 $ 1,520,713 $ 71,937,763 $ 246,328,570
4,814,687 - 5,965,312 15,147,642
- - - 4,224
970,139 - 970,139 3,820,336
- - - 1,619,490
- - - 215,380
5,784,826 - 6,935,451 20,807,072
3,133,844
3,133,844
Fund Balances (Deficit):
Total Non -
Special General
Major
Obligation Obligation Bonds Total Capital
Governmental
Bonds Projects Projects Projects
Funds
$ - $ - $ - $ 112,158,435
13,118,842 1,499,482 71,886,428 115,642,655
- 1,794
- 3,894,670
- 216,844
- - - 13,857,236
30,104 21,231 51,335 212,970
- - - 26,537
- - - 317,429
$ 13,148,946 $ 1,520,713 $ 71,937,763 $ 246,328,570
4,814,687 - 5,965,312 15,147,642
- - - 4,224
970,139 - 970,139 3,820,336
- - - 1,619,490
- - - 215,380
5,784,826 - 6,935,451 20,807,072
3,133,844
3,133,844
Fund Balances (Deficit):
Non -Spendable Fund Balance
Non Spendable - -
- 1,026,537
Spendable Fund Balance
Restricted 7,364,120 1,520,713
65,002,312 182,460,427
Committed - -
- 36,618,001
Assigned - -
- 2,315,463
Unassigned (deficit) - -
- (32,774)
Total Fund Balances (Deficit) 7,364,120 1,520,713
65,002,312 222,387,654
Total Liabilities, Deferred Inflows of Resources and
Fund Balances $ 13,148,946 $ 1,520,713
$ 71,937,763 $ 246,328,570
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, 2018
Revenues
Property Taxes
Licenses and Permits
Fines and Forfeitures
Intergovernmental Revenues
Charges for Services
Investment Earnings (Loss)
Other
Total Revenues
Expenditures
Current Operating:
General Government
Planning and Development
Community Development
Community Redevelpment Areas
Public Works
Public Safety
Public Facilities
Parks and Recreation
Debt Service:
Principal
Interest and Other Charges
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses)
Transfers In
Transfers Out
Proceeds Received from Refunding
Payment To Escrow Agent For Refunding
Issuance of Debt
Total Other Financing Sources (Uses)
Net Changes in Fund Balances
Fund Balances (Deficit) - Beginning
Fund Balances (Deficit) - Ending
Special Revenue
Funds
Homeless Community
Omni CRA Midtown CRA SEOPW CRA Program Development
$ 18,721,974
$ 6,628,202 $ 18,612,071
$ - $ -
-
- -
- 300
8,333
- 771,462
1,756,013 25,342,832
-
- -
- 439,474
248,783
- 735,712
- 20,638
2,091,811
2,094,372
- -
21,070,901
6,628,202 22,213,617
1,756,013 25,803,244
2,201,368 69,286
23,255,018
12,912,701 6,563,920 13,552,042 - -
- - 677,649 - 2,844,564
12,912,701 6,563,920 14,229,691 2,201,368 26,168,868
8,158,200 64,282 7,983,926 (445,355) (365,624)
64,282 - - - 894,000
(5,460,786) (64,282) (8,538,484) - -
(5,396,504) (64,282) (8,538,484) - 894,000
2,761,696 - (554,558) (445,355) 528,376
3,555,166 - 24,593,205 412,818 13,506,745
$ 6,316,862 $ - $ 24,038,647 $ (32,537) $ 14,035,121
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, 2018
Revenues
Property Taxes
Licenses and Permits
Fines and Forfeitures
Intergovernmental Revenues
Charges for Services
Investment Earnings (Loss)
Other
Total Revenues
Expenditures
Current Operating:
General Government
Planning and Development
Community Development
Community Redevelpment Areas
Public Works
Public Safety
Public Facilities
Parks and Recreation
Debt Service:
Principal
Interest and Other Charges
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses)
Transfers In
Transfers Out
Proceeds Received from Refunding
Payment To Escrow Agent For Refunding
Issuance of Debt
Total Other Financing Sources (Uses)
Net Changes in Fund Balances
Fund Balances (Deficit) - Beginning
Fund Balances (Deficit) - Ending
Special Revenue
Funds
Economic
Housing Development
Choice Convention & Planning
Vouchers SHIP Center Services NET Offices
- - - 418,619 -
2,336,028 1,094,798 - - -
49,226 -
2,336,028 1,094,798 - 467,845 -
(130,110) 591,135 - 2,382,601 71,068
(1,118,999) (3,154,000)
(1,118,999) (3,154,000)
(130,110) 591,135 (1,118,999) (771,399) 71,068
216,823 1,088,946 1,118,762 17,299,975 1,666,618
$ 86,713 $ 1,680,081 $ (237) $ 16,528,576 $ 1,737,686
173
-
-
- 211.478
30
-
-
- -
2,800
2,194,827
1,396,873
- -
-
-
-
- 2,641,764
83,532
56
5,640
- (2,796)
(15,294)
11,035
283,420
-
-
2,205,918
1,685,933
- 2,850,446
71,068
- - - 418,619 -
2,336,028 1,094,798 - - -
49,226 -
2,336,028 1,094,798 - 467,845 -
(130,110) 591,135 - 2,382,601 71,068
(1,118,999) (3,154,000)
(1,118,999) (3,154,000)
(130,110) 591,135 (1,118,999) (771,399) 71,068
216,823 1,088,946 1,118,762 17,299,975 1,666,618
$ 86,713 $ 1,680,081 $ (237) $ 16,528,576 $ 1,737,686
173
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, 2018
Expenditures
Special Revenue
Current Operating:
Funds
Parks &
-
Law
-
-
83,303
Recreation
-
Enforcement
Public Works
City Clerk
-
Services
Police Services
Trust
Services
Services
Revenues
Community Redevelpment Areas
-
-
-
-
Property Taxes
$ -
$ -
$-
-
3,105,517
Licenses and Permits
-
-
-
231.359
-
Fines and Forfeitures
-
-
184,002
-
-
Intergovernmental Revenues
555,695
5,850,771
-
-
-
Charges for Services
1,977
128,462
-
6,718,247
238,441
Investment Earnings (Loss)
-
51,903
23,163
-
-
Other
8,513
158,447
-
-
-
Total Revenues
566,185
6,189,583
207,165
6,949,606
238,441
Expenditures
Current Operating:
General Government
-
-
-
-
83,303
Planning and Development
-
-
-
-
-
Community Development
-
-
-
-
-
Community Redevelpment Areas
-
-
-
-
-
Public Works
-
-
-
3,105,517
-
Public Safety
-
10,325,785
596,058
-
-
Public Facilities
-
-
-
-
-
Parks and Recreation
820,741
-
-
-
-
Debt Service:
Principal
-
-
-
-
-
Interest and Other Charges
-
-
-
-
-
Capital Outlay
15,788
177,674
27,639
45,833
1,500
Total Expenditures
836,529
10,503,459
623,697
3,151,350
84,803
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(270,344)
(4,313,876)
(416,532)
3,798,256
153,638
Other Financing Sources (Uses)
Transfers In 60,000 6,007,000 - 1,465,000 48,000
Transfers Out (53,800) - - (5,030,155) -
Proceeds Received from Refunding - - - - -
Payment To Escrow Agent For Refunding - - - - -
Issuance of Debt - - -
Total Other Financing Sources (Uses) 6,200 6,007,000 - (3,565,155) 48,000
Net Changes in Fund Balances (264,144) 1,693,124 (416,532) 233,101 201,638
Fund Balances (Deficit) - Beginning 3,286,636 5,717,797 1,393,791 11,286,062 1,002,210
Fund Balances (Deficit) - Ending $ 3,022,492 $ 7,410,921 $ 977,259 $ 11,519,163 $ 1,203,848
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, 2018
Expenditures
Special Revenue
Current Operating:
Funds
General Government
-
336,224
5,161,142
19,528 -
Planning and Development
Miami
-
627,869
General
Departmental
-
Ballpark
-
Fire Rescue
Special
Improvement Transportation
Parking
-
Services
Revenues
Initiatives
& Transit
Facilities
Revenues
Public Safety
7,180,851
-
4,450
- -
Property Taxes
$ -
$ -
$ -
$ -
$ -
Licenses and Permits
-
-
-
-
-
Fines and Forfeitures
-
-
1,564,335
-
-
Intergovernmental Revenues
6,816,770
305,360
1,647,505
17,844,619
50,000
Charges for Services
13,045
-
-
-
5,250,880
Investment Earnings (Loss)
1,314
-
80,633
13,206
-
Other
57,665
584,246
10,000
-
-
Total Revenues
6,888,794
889,606
3,302,473
17,857,825
5,300,880
Expenditures
Current Operating:
General Government
-
336,224
5,161,142
19,528 -
Planning and Development
-
-
627,869
- -
Community Development
-
-
-
- -
Community Redevelpment Areas
-
-
-
-
Public Works
-
412,903
21,915
10,157,593
Public Safety
7,180,851
-
4,450
- -
Public Facilities
-
-
2,143,279
- 2,342,550
Parks and Recreation
-
-
187,833
- -
Debt Service:
Principal
-
-
-
- -
Interest and Other Charges
-
-
-
-
Capital Outlay
407,319
20,965
264,620
-
Total Expenditures
7,588,170
770,092
8,411,108
10,177,121 2,342,550
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(699,376)
119,514
(5,108,635)
7,680,704 2,958,330
Other Financing Sources (Uses)
Transfers In 607,000 31,000 6,561,000 - -
Transfers Out - - (355,021) (9,846,000) (27007,000)
Proceeds Received from Refunding - - - - -
Payment To Escrow Agent For Refunding - - - - -
Issuance of Debt - - - -
Total Other Financing Sources (Uses) 607,000 31,000 6,205,979 (9,846,000) (2,007,000)
Net Changes in Fund Balances (92,376) 150,514 1,097,344 (2,165,296) 951,330
Fund Balances (Deficit) - Beginning 2,674,350 697,817 9,570,738 5,881,706 3,169,417
Fund Balances (Deficit) - Ending $ 2,581,974 $ 848,331 $ 10,668,082 $ 3,716,410 $ 4,120,747
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, 2018
Other Financing Sources (Uses)
Transfers In - - - 1,420,000 17,157,282
Transfers Out - - - - (35,628,527)
Proceeds Received from Refunding - - - - -
Payment To Escrow Agent For Refunding - - - - -
Issuance of Debt - -
Total Other Financing Sources (Uses) - - - 1,420,000 (18,471,245)
Net Changes in Fund Balances
(97,725)
51,789
Special Revenue
3,672,521
Fund Balances (Deficit) - Beginning
331,324
23,113
Funds
109,626,925
Bayfront Park
Fund Balances (Deficit) - Ending
$ 233,599
Liberty City
Virginia Key
Land
Revitalization
Beach Park
Solid Waste Acquisition
Total Special
Trust
Trust RecyclingTrust Trust Fund
Revenue
Revenues
Property Taxes
$ -
$ -
S - $ -
$ 43,962,247
Licenses and Permits
-
-
- -
443,167
Fines and Forfeitures
-
-
- -
1,751,137
Intergovernmental Revenues
599,000
313,350
- -
65,453,410
Charges for Services
-
441,981
- -
15,957,803
Investment Earnings (Loss)
-
4,303
17,184 -
1,184,445
Other
30,000
192,024
- -
5,521,533
Total Revenues
629,000
951,658
17,184 -
134,273,742
Expenditures
Current Operating:
General Government
-
-
- -
7,870,851
Planning and Development
-
-
- -
1,046,488
Community Development
-
-
- -
26,685,844
Community Redevelpment Areas
726,725
-
- -
33,755,388
Public Works
-
-
39,284 -
13,786,438
Public Safety
-
-
- -
18,107,144
Public Facilities
-
-
- -
4,485,829
Parks and Recreation
-
889,791
- -
1,898,365
Debt Service:
Principal
-
-
- -
-
Interest and Other Charges
-
-
- -
-
Capital Outlay
10,078
-
4,493,629
Total Expenditures
726,725
899,869
39,284 -
112,129,976
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(97,725)
51,789
(22,100) -
22,143,766
Other Financing Sources (Uses)
Transfers In - - - 1,420,000 17,157,282
Transfers Out - - - - (35,628,527)
Proceeds Received from Refunding - - - - -
Payment To Escrow Agent For Refunding - - - - -
Issuance of Debt - -
Total Other Financing Sources (Uses) - - - 1,420,000 (18,471,245)
Net Changes in Fund Balances
(97,725)
51,789
(22,100) 1,420,000
3,672,521
Fund Balances (Deficit) - Beginning
331,324
23,113
1,132,906 -
109,626,925
Fund Balances (Deficit) - Ending
$ 233,599
$ 74,902
$ 1,110,806 $ 1,420,000
$ 113,299,446
176
City of Miami, Florida
Combining Statement of Revenues, Expenditures and Changes in Fund Bplances
Non -Major Governmental Funds
For The Fiscal Year Ended September 30, 2018
Other Financing Sources (Uses)
Transfers In
- 5,214,661
Debt Service
49,019,661
Capital Projects
Transfers Out
- -
Funds
-
Funds
Proceeds Received from Refunding
- -
CRA Other
83,045,000
-
Payment To Escrow Agent For Refunding
- -
General
Special
Special
Issuance of Debt
Community
Obligation
Obligation
Obligation
Total Debt
Redevelopment
60,729,661
Bonds
Bonds
Bonds
Service
Agency
Revenues
(2,987,879)
3,412,784
12,979,465
Fund Balances (Deficit) - Beginning
5,580,816 -
Property Taxes
$ 28,017,811
$ -
$ -
$ 28,017,811
$ -
Licenses and Permits
-
-
-
-
-
Fines and Forfeitures
-
-
-
-
-
Intergovernmental Revenues
-
-
4,000,000
4,000,000
-
Charges for Services
-
-
-
-
-
Investment Earnings (Loss)
32,876
3,157
130,351
166,384
127,846
Other
-
-
-
-
Total Revenues
28,050,687
3,157
4,130,351
32,184,195
127,846
Expenditures
Current Operating:
General Government
9,557
-
374,893
384.450
-
Planning and Development
-
-
-
-
-
Community Development
-
-
-
-
Community Redevelpment Areas
-
217,515
-
217,515
-
Public Works
-
-
-
-
-
Public Safety
-
-
-
-
-
Public Facilities
-
-
-
-
-
Parks and Recreation
-
-
-
-
-
Debt Service:
Principal
20,255,000
2,850,000
30,494,962
53,599,962
-
Interest and Other Charges
3,941,109
2,364,661
28,993,375
35,299,145
-
Capital Outlay
-
-
-
-
9,378,381
Total Expenditures
24,205,666
5,432,176
59,863,230
89,501,072
9,378,381
Excess (Deficiency) of Revenues
Over (Under) Expenditures
3,845,021
(5,429,019)
(55,732,879)
(57,316,877)
(9,250,535)
Other Financing Sources (Uses)
Transfers In
- 5,214,661
43,805,000
49,019,661
-
Transfers Out
- -
-
-
-
Proceeds Received from Refunding
- -
83,045,000
83,045,000
-
Payment To Escrow Agent For Refunding
- -
(74,105,000)
(74,105,000)
-
Issuance of Debt
2,770,000
2,770,000
22,230,000
Total Other Financing Sources (Uses)
- 7,984,661
52,745,000
60,729,661
22,230,000
Net Changes in Fund Balances
3,845,021 2,555,642
(2,987,879)
3,412,784
12,979,465
Fund Balances (Deficit) - Beginning
5,580,816 -
35,092,296
40,6731112
11,825,228
Fund Balances (Deficit) - Ending
$ 9,425,837 $ 2,555,642
$ 32,104,417
$ 44,085,896
$ 24,804,693
177
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, 2018
Revenues
Property Taxes
Licenses and Permits
Fines and Forfeitures
Intergovernmental Revenues
Charges for Services
Investment Earnings (Loss)
Other
Total Revenues
Expenditures
Current Operating:
General Government
Planning and Development
Community Development
Community Redevelpment Areas
Public Works
Public Safety
Public Facilities
Parks and Recreation
Debt Service:
Principal
Interest and Other Charges
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses)
Transfers In
Transfers Out
Proceeds Received from Refunding
Payment To Escrow Agent For Refunding
Issuance of Debt
Total Other Financing Sources (Uses)
Net Changes in Fund Balances
Fund Balances (Deficit) - Beginning
Fund Balances (Deficit) - Ending
Capital Projects
Total Non -
Special General Major
Transportation Obligation Obligation Total Capital Governmental
& Transit Bonds Projects Bonds Projects Projects Funds
$ 71,980,058
443,167
1,751,137
69,453,410
15,957,803
862,850 165,895 22,499 1,179,090 2,529,919
- - - - 5,521,533
862,850 165,895 22,499 1,179,090 167,637,027
23,649 2.568.307 - 2,591,956
10,847,257
2,441 - - 2,441
1,048,929
- - - -
26,685,844
- - - -
33,972,903
364,836 - - 364,836
14,151,274
- 1,005 - 1,005
18,108,149
- 2,230 - 2,230
4,488,059
- - - -
1,898,365
53,599,962
- - - - 35,299,145
3,681,246 5,974,375 - 19,034,002 23,527,631
4,072,172 8,545,917 - 21,996,470 223,627,518
(3,209,322) (8,380,022) 22,499 (20,817,380) (55,990,491)
3,710,000 -
710,000 -
500,678 (8,380,022)
3,710,000 69,886,943
- (35,628,527)
- - 83,045,000
- - (74,105,000)
22,230,000 25,000,000
- 25,940,000 681198,416
22,499 5,122,620 12,207,925
30,812.108 151744,142 1,498,214 59,879,692 210,179,729
$ 31,312,786 $ 7,364,120 $ 1,520,713 $ 65,002,312 $ 222,387,654
178
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, 2018
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Property Taxes
$ 18,325,101 $
18,325,101 $
18,721,974 $
396,873
Intergovernmental Revenues
-
-
8,333
8,333
Investment Earnings (Loss)
-
-
248,783
248,783
Other
35,062,771
35,062,771
2,091,811
(32,970,960)
Total Revenues
53,387,872
53,387,872
21,070,901
(32,316,971)
Community Redevelpment Areas
37,702,835
37,702,835
12,912,701
24,790,134
Capital Outlay
7,403,363
7,403,363
-
7,403,363
Total Expenditures
45,106,198
45,106,198
12,912,701
32,193,497
Excess (Deficiency) of Revenues Over (Under) Expendithu•es
8,281,674
8,281,674
8,158,200
(123,474)
Other Financing Sources (Uses):
Transfers In
-
-
64,282
64,282
Transfers Out
(8,281,674)
(8,281,674)
(5,460,786)
2,820,888
Total Other Financing Sources (Uses)
(8,281,674)
(8,281,674)
(5,396,504)
2,885,170
Net Change in Fund Balance
-
-
2,761,696
2,761,696
Fund Balance (deficit) - Beginning of Year
3,555,166
3,555,166
Fund Balance (deficit) - End of Year
$ - $
- $
6:316,862 $
67316,862
179
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, 2018
Other Financing Sources (Uses):
Transfers Out (66,284) (66,284) (64,282) 2,002
Total Other Financing Sources (Uses) (66,284) (66,284) (64,282) 2,002
Net Change in Fund Balance - - - -
Fund Balance (deficit) - Beginning of Year
Fund Balance (deficit) - End of Year $ - $ - $ $
180
Budgeted Amounts
Variance with
Original
Final
Actual Amounts
Final Budget
Revenues:
Property Taxes
$ 6,628,404 $
6,628,404
$ 6,628,202 $
(202)
Total Revenues
6,628,404
6,628,404
6,628,202
(202)
Community Redevelpment Areas
6,562,120
6,562,120
6,563,920
(1,800)
Total Expenditures
6,562,120
6,562,120
6,563,920
(1,800)
Excess (Deficiency) of Revenues Over (Under) Expenditures
66,284
66,284
64,282
(2,002)
Other Financing Sources (Uses):
Transfers Out (66,284) (66,284) (64,282) 2,002
Total Other Financing Sources (Uses) (66,284) (66,284) (64,282) 2,002
Net Change in Fund Balance - - - -
Fund Balance (deficit) - Beginning of Year
Fund Balance (deficit) - End of Year $ - $ - $ $
180
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, 2018
Other Financing Sources (Uses):
Transfers Out (11,105,084) (11,105,084) (8,538,484) 2,566,600
Total Other Financing Sources (Uses) (11,105,084) (11,105,084) (8,538,484) 2,566,600
Net Change in Fund Balance - - (554,558) (554,558)
Fund Balance (deficit) - Beginning of Year 24,593,205 24,593,205
Fund Balance (deficit) - End of Year $ - $ - $ 24,038,647 $ 24,038,647
181
Budgeted Amounts
Variance with
Original
Final
Actual Amounts
Final Budget
Revenues:
Property Taxes
$ 18,616,471 $
18,616,471
$ 18,612,071
$ (4,400)
Intergovernmental Revenues
-
-
771,462
771,462
Investment Earnings (Loss)
-
-
735,712
735,712
Other
27,673,603
27,673,603
2,094,372
(25,579,231)
Total Revenues
46,290,074
46,290,074
22,213,617
(24,076,457)
Community Redevelpment Areas
34,593,584
34,593,584
13,552,042
21,041,542
Capital Outlay
591,406
591,406
677,649
(86,243)
Total Expenditures
35,184,990
35,184,990
14,229,691
20,955,299
Excess (Deficiency) of Revenues Over (Under) Expenditures
11,105,084
11,105,084
7,983,926
(3,121,158)
Other Financing Sources (Uses):
Transfers Out (11,105,084) (11,105,084) (8,538,484) 2,566,600
Total Other Financing Sources (Uses) (11,105,084) (11,105,084) (8,538,484) 2,566,600
Net Change in Fund Balance - - (554,558) (554,558)
Fund Balance (deficit) - Beginning of Year 24,593,205 24,593,205
Fund Balance (deficit) - End of Year $ - $ - $ 24,038,647 $ 24,038,647
181
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, 2018
Revenues:
Intergovernmental Revenues
Other
Total Revenues
General Government
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
Net Change in Fund Balance
Fund Balance (deficit) - Beginning of Year
Fund Balance (deficit) - End of Year
Budgeted Amounts
Variance with
Original
Final
Actual Amounts
Final Budget
$ 2,183,000 $
2,183,000
$ 1,756,013
$ (426,987)
352,000
352,000
-
(352,000)
2,535,000
2,535,000
1,756,013
(778,987)
2,535,000
2,535,000
2,201,368
333,632
2,535,000
2,535,000
2,201,368
333,632
-
(445,355)
(445,355)
-
-
(445,355)
(445,355)
412,818
412,818
$ - $
-
$ (32,537)
$ (32,537)
182
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, 2018
Revenues:
Licenses and Permits
Intergovernmental Revenues
Charges for Services
Investment Earnings (Loss)
Other
Total Revenues
General Government
Community Development
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers In
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance (deficit) - Beginning of Year
Fund Balance (deficit) - End of Year
Budgeted Amounts
Variance with
Original
Final
Actual Amounts
Final Budget
$ - $
-
$ 300
$ 300
22,412,000
22,400,000
25,342,832
2,942,832
-
-
439,474
439,474
-
-
20,638
20,638
24,088,000
24,288,000
(24,288,000)
46,500,000
46,688,000
25,803,244
(20,884,756)
-
-
69,286
(69,286)
46,500,000
47,582,000
23,255,018
24,326,982
-
2,844,564
(2,844,564)
46,500,000
47,582,000
26,168,868
21,413,132
-
(894,000)
(365,624)
528,376
894,000
894,000
-
-
894,000
894,000
-
-
-
528,376
528,376
-
13,506,745
13,506,745
$ 14,035,121
$ 14,035,121
183
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, 2018
Revenues:
Intergovernmental Revenues
Investment Earnings (Loss)
Other
Total Revenues
Community Development
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
Net Change in Fund Balance
Fund Balance (deficit) - Beginning of Year
Fund Balance (deficit) - End of Year
Budgeted Amounts
Variance with
Original
Final
Actual Amounts
Final Budget
$ 2,416,000 $
2,416,000
$ 2,194,827
$ (221,173)
-
-
56
56
-
12,000
11,035
(965)
2,416,000
2,428,000
2,205,918
(222,082)
2,416,000
2,428,000
2,336,028
91,972
2,416,000
2,428,000
2,336,028
91,972
-
-
(130,110)
(130,110)
-
-
(130,110)
(130,110)
-
216,823
216,823
$ - $
-
$ 86,713
$ 86,713
184
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - SHIP
For The Fiscal Year Ended September 30, 2018
Revenues:
Intergovernmental Revenues
Investment Earnings (Loss)
Other
Total Revenues
Community Development
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
Net Change in Fund Balance
Fund Balance (deficit) - Beginning of Year
Fund Balance (deficit) - End of Year
Budgeted Amounts
Variance with
Original
Final
Actual Amounts
Final Budget
$ - $
-
$ 1,396,873
$ 1,396,873
-
-
5,640
5,640
1,315,000
1,315,000
283,420
(1,031,580)
1,315,000
1,315,000
1,685,933
370,933
1,315,000
1,315,000
1,094,798
220,202
1,315,000
1,315,000
1,094,798
220,202
591,135 591,135
591,135 591,135
1,088,946 1,088,946
$ - $ - $ 1,680,081 $ 1.680.081
185
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, 2018
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Other $ 1,119,000 $ 1,119,000 $ $ (1,119,000)
Total Revenues 1,119,000 1,119,000 - (1,119,000)
Excess (Deficiency) of Revenues Over (Under) Expenditures 1,119,000 1,119,000 - (1,119,000)
Other Financing Sources (Uses):
Transfers Out (1,119,000) (1,119,000) (1,118,999) 1
Total Other Financing Sources (Uses) (1,119,000) (1,119,000) (1,118,999) 1
Net Change in Fund Balance - - (1,118,999) (1,118,999)
Fund Balance (deficit) - Beginning of Year - - 1,118,762 1,118,762
Fund Balance (deficit) - End of Year $ - $ - $ (237) $ (237)
186
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, 2018
Other Financing Sources (Uses):
Transfers Out (2,154,000) (2,154,000) (3,154,000) (1,000,000)
Total Other Financing Sources (Uses) (2,154,000) (2,154,000) (3,154,000) (1,000,000)
Net Change in Fund Balance - (771,399) (771,399)
Fund Balance (deficit) - Beginning of Year - 17,299,975 17,299,975
Fund Balance (deficit) - End of Year $ - $ $ 16,528,576 $ 16,528,576
187
Budgeted Amounts
Variance with
Original
Final
Actual Amounts
Final Budget
Revenues:
Licenses and Permits
$ 114,000 $
114,000
$ 211,478
$ 97,478
Charges for Services
600,000
600,000
2,641,764
2,041,764
Investment Earnings (Loss)
-
-
(2,796)
(2,796)
Other
16,586,000
19,214,000
(19,214,000)
Total Revenues
17,300,000
19,928,000
2,850,446
(17,077,554)
Planning and Development
14,921,000
17,549,000
418,619
17,130,381
Public Works
-
-
49,226
(49,226)
Capital Outlay
225,000
225,000
-
225,000
Total Expenditures
15,146,000
17,774,000
467,845
17,306,155
Excess (Deficiency) of Revenues Over (Under) Expenditures
2,154,000
2,154,000
2,382,601
228,601
Other Financing Sources (Uses):
Transfers Out (2,154,000) (2,154,000) (3,154,000) (1,000,000)
Total Other Financing Sources (Uses) (2,154,000) (2,154,000) (3,154,000) (1,000,000)
Net Change in Fund Balance - (771,399) (771,399)
Fund Balance (deficit) - Beginning of Year - 17,299,975 17,299,975
Fund Balance (deficit) - End of Year $ - $ $ 16,528,576 $ 16,528,576
187
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, 2018
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Licenses and Permits $ - $ $ 30 $ 30
Fines and Forfeitures - - 2,800 2,800
Charges for Services - - 83,532 83,532
Investment Earnings (Loss) - (15,294) (15,294)
Total Revenues - - 71,068 71,068
Excess (Deficiency) of Revenues Over (Under) Expenditures - - 71,068 71,068
Net Change in Fund Balance - - 71,068 71,068
Fund Balance (deficit) - Beginning of Year - 1,666,618 1,666,618
Fund Balance (deficit) - End of Year $ - $ - $ 1,737,686 $ 1,737,686
188
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, 2018
Budgeted Amounts
Other Financing Sources (Uses):
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance (deficit) - Beginning of Year
Fund Balance (deficit) - End of Year
60.000 60,000 60,000 -
- - (53,800) (51800)
60,000 60,000 6,200 (53,800)
189
(264,144) (264,144)
3,286,636 3,286,636
$ 3,022,492 $ 3.022,492
Variance with
Original
Final
Actual Amounts
Final Budget
Revenues:
Intergovernmental Revenues
$ 275,000 $
276,405
$ 555,695
$ 279,290
Charges for Services
-
-
1,977
1,977
Other
1,841,000
1,938,500
8,513
(1,929,987)
Total Revenues
2,116,000
2,214,905
566,185
(1,648,720)
Parks and Recreation
2,176,000
2,256,905
820,741
1,436,164
Capital Outlay
-
18,000
15,788
2,212
Total Expenditures
2,176,000
2,274,905
836,529
1,438,376
Excess (Deficiency) of Revenues Over (Under) Expenditures
(60,000)
(60,000)
(270,344)
(210,344)
Other Financing Sources (Uses):
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance (deficit) - Beginning of Year
Fund Balance (deficit) - End of Year
60.000 60,000 60,000 -
- - (53,800) (51800)
60,000 60,000 6,200 (53,800)
189
(264,144) (264,144)
3,286,636 3,286,636
$ 3,022,492 $ 3.022,492
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, 2018
190
Budgeted Amounts
Variance with
Original
Final
Actual Amounts
Final Budget
Revenues:
Fines and Forfeitures
$ 50,000 $
50,000
$ -
$ (50,000)
Intergovernmental Revenues
4,357,000
5,383,000
5,850,771
467,771
Charges for Services
871,000
871,000
128,462
(742,538)
Investment Earnings (Loss)
-
-
51,903
51,903
Other
1,884,000
1,984,000
158,447
(1,825,553)
Total Revenues
7,162,000
8,288,000
6,189,583
(2,098,417)
Public Safety
11,836,000
12,757,000
10,325,785
2,431,215
Capital Outlay
1,333,000
1,538,000
177,674
1,360,326
Total Expenditures
13,169,000
14,295,000
10,503,459
3,791,541
Excess (Deficiency) of Revenues Over (Under) Expenditures
(6,007,000)
(6,007,000)
(4,313,876)
1,693,124
Other Financing Sources (Uses):
Transfers In
6,007,000
6,007,000
6,007,000
-
Total Other Financing Sources (Uses)
6,007,000
6,007,000
6,007,000
-
Net Change in Fund Balance
-
-
1,693,124
1,693,124
Fund Balance (deficit) - Beginning of Year
5,717,797
5,717,797
Fund Balance (deficit) - End of Year
$ - $
-
$ 7,410,921
$ 7,410,921
190
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, 2018
Revenues:
Fines and Forfeitures
Investment Earnings (Loss)
Other
Total Revenues
Public Safety
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
Net Change in Fund Balance
Fund Balance (deficit) - Beginning of Year
Fund Balance (deficit) - End of Year
Budgeted Amounts
Variance with
Original
Final
Actual Amounts
Final Budget
$ 600,000 $
600,000
$ 184,002
$ (415,998)
-
-
23,163
23,163
1,842,000
1,394,000
(1,394,000)
2,442,000
1,994,000
207,165
(1,786,835)
2,064,000
1,616,000
596,058
1,019,942
378,000
378,000
27,639
350,361
2,442,000
1,994,000
623,697
1,370,303
191
(416,532) (416,532)
- - (416,532) (416,532)
1,393,791 1,393,791
977,259 $ 977,259
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, 2018
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Licenses and Permits $
300,000 $
300,000 $
231,359 $
(68,641)
Charges for Services
6,914,000
6,914,000
6,718,247
(195,753)
Other
9,813,000
11,286,000
(11,286,000)
Total Revenues
17,027,000
18,500,000
6,949,606
(11,550,394)
Public Works
14,449,000
16,118,000
3,105,517
13,012,483
Capital Outlay
-
45,833
(45,833)
Total Expenditures
14,449,000
16,118,000
3,151,350
12,966,650
Excess (Deficiency) of Revenues Over (Under) Expenditures
2,578,000
2,382,000
3,798,256
1,416,256
Other Financing Sources (Uses):
Transfers In
-
196,000
1,465,000
1,269,000
Transfers Out
(2,578,000)
(2,578,000)
(5,030,155)
(2,452,155)
Total Other Financing Sources (Uses)
(2,578,000)
(2,382,000)
(3,565,155)
(1,183,155)
Net Change in Fund Balance
-
-
233,101
233,101
Fund Balance (deficit) - Beginning of Year
-
11,286,062
11,286,062
Fund Balance (deficit) - End of Year $
- $
- $
11,519,163 $
11,519,163
192
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, 2018
Other Financing Sources (Uses):
Transfers In
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance (deficit) - Beginning of Year
Fund Balance (deficit) - End of Year
48,000 48,000 48,000
48,000 48,000 48,000
193
201,638 201,638
1,002,210 1,002,210
1,203,848 $ 1,203,848
Budgeted Amounts
Variance with
Original
Final
Actual Amounts
Final Budget
Revenues:
Charges for Services
$ 90,000 $
90,000
$ 238,441
$ 148,441
Other
611,000
1,002,000
-
(1,002,000)
Total Revenues
701,000
1,092,000
238,441
(853,559)
General Government
749,000
1,140,000
83,303
1,056,697
Capital Outlay
1,500
(1,500)
Total Expenditures
749,000
1,140,000
84,803
1,055,197
Excess (Deficiency) of Revenues Over (Under) Expenditures
(48,000)
(48,000)
153,638
201,638
Other Financing Sources (Uses):
Transfers In
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance (deficit) - Beginning of Year
Fund Balance (deficit) - End of Year
48,000 48,000 48,000
48,000 48,000 48,000
193
201,638 201,638
1,002,210 1,002,210
1,203,848 $ 1,203,848
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, 2018
194
Budgeted Amounts
Variance with
Original
Final
Actual Amounts
Final Budget
Revenues:
Intergovernmental Revenues
$ 6,433,000 $
7,868,600
$ 6,816,770
$ (1,051,830)
Charges for Services
-
-
13,045
13,045
Investment Earnings (Loss)
-
-
1,314
1,314
Other
10,739,000
9,516,000
57,665
(9,458,335)
Total Revenues
17,172,000
17,384,600
6,888,794
(10,495,806)
Public Safety
12,619,000
12,076,100
7,180,851
4,895,249
Capital Outlay
5,097,000
5,915,500
407,319
5,508,181
Total Expenditures
17,716,000
17,991,600
7,588,170
10,403,430
Excess (Deficiency) of Revenues Over (Under) Expenditures
(544,000)
(607,000)
(699,376)
(92,376)
Other Financing Sources (Uses):
Transfers In
544,000
607,000
607,000
Total Other Financing Sources (Uses)
544,000
607,000
607,000
-
Net Change in Fund Balance
-
-
(92,376)
(92,376)
Fund Balance (deficit) - Beginning of Year
2,674,350
2,674,350
Fund Balance (deficit) - End of Year
$ $
$ 2,581,974
$ 2,581,974
194
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, 2018
Revenues:
Intergovernmental Revenues
Other
Total Revenues
General Government
Public Works
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers In
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance (deficit) - Beginning of Year
Fund Balance (deficit) - End of Year
Budgeted Amounts
Variance with
Original
Final
Actual Amounts
Final Budget
$ 400,000 $
400,000
$ 305,360
$ (94,640)
475,000
1,136,000
584,246
(551,754)
875,000
1,536,000
889,606
(646,394)
-
1,000
336,224
(335,224)
875,000
1,566,000
412,903
1,153,097
20,965
(20,965)
875,000
1,567,000
770,092
796,908
-
(31,000)
119,514
150,514
31,000
31,000
-
31,000
31,000
-
-
-
150,514
150,514
-
-
697,817
697,817
848.331
$ 848,331
195
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, 2018
Revenues:
Fines and Forfeitures
Intergovernmental Revenues
Investment Earnings (Loss)
Other
Total Revenues
General Government
Planning and Development
Public Works
Public Safety
Public Facilities
Parks and Recreation
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance (deficit) - Beginning of Year
Fund Balance (deficit) - End of Year
Budgeted Amounts
Variance with
Original
Final
Actual Amounts
Final Budget
$ 600,000 $
600,000
$ 1,564,335
$ 964,335
1,935,000
1,935,000
1,647,505
(287,495)
-
-
80,633
80,633
4,005,000
6,117,500
10,000
(6,107,500)
6,540,000
8,652,500
3,302,473
(5,350,027)
8,877,000
11,656,000
5,161,142
6,494,858
2,266,000
2,641,000
627,869
2,013,131
-
2,500
21,915
(19,415)
-
-
4,450
(4,450)
-
148,000
2,143,279
(1,995,279)
200,000
216,000
187,833
28,167
264,620
(264,620)
11,343,000
14,663,500
8,411,108
6,252,392
(4,803,000)
(6,011,000)
(5,108,635)
902,365
4,803,000
6,011,000
6,561,000
550,000
(355,021)
(355,021)
4,803,000
6,011,000
6,205,979
194,979
-
-
1,097,344
1,097,344
-
9,570,738
9,570,738
$ - $
$ 10,668,082
$ 10,668.082
196
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, 2018
197
Budgeted Amounts
Variance with
Original
Final
Actual Amounts
Final Budget
Revenues:
Intergovernmental Revenues
$ 16,556,000 $
16,556,000
$ 17,844,619
$ 1,288,619
Investment Earnings (Loss)
-
-
13,206
13,206
Other
4,075,000
5,882,000
(5,882,000)
Total Revenues
20,631,000
22,438,000
17,857,825
(4,580,175)
General Government
-
-
19,528
(19,528)
Public Works
14,245,000
16,052,000
10,157,593
5,894,407
Total Expenditures
14,245,000
16,052,000
10,177,121
5,874,879
Excess (Deficiency) of Revenues Over (Under) Expenditures
6,386,000
6,386,000
7,680,704
1,294,704
Other Financing Sources (Uses):
Transfers Out
(6,386,000)
(6,386,000)
(9,846,000)
(3,460,000)
Total Other Financing Sources (Uses)
(6,386,000)
(6,386,000)
(9,846,000)
(3,460,000)
Net Change in Fund Balance
-
-
(2,165,296)
(2,165,296)
Fund Balance (deficit) - Beginning of Year
-
5,881,706
5,881,706
Fund Balance (deficit) - End of Year
$ - $
-
$ 3,716,410
$ 3.716,410
197
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, 2018
198
Budgeted Amounts
Variance with
Original
Final
Actual Amounts
Final Budget
Revenues:
Intergovernmental Revenues
$ - $
-
$ 50,000
$ 50,000
Charges for Services
5,127,000
5,127,000
5,250,880
123,880
Total Revenues
5,127,000
5327,000
5,300,880
173,880
Public Facilities
3,120,000
3,120,000
2,342,550
777,450
Total Expenditures
3,120,000
3,120,000
2,342,550
777,450
Excess (Deficiency) of Revenues Over (Under) Expenditures
2,007,000
2,007,000
2,958,330
951,330
Other Financing Sources (Uses):
Transfers Out
(2,007,000)
(2,007,000)
(2,007,000)
-
Total Other Financing Sources (Uses)
(2,007,000)
(2,007,000)
(2,007,000)
-
Net Change in Fund Balance
-
-
951,330
951,330
Fund Balance (deficit) - Beginning of Year
-
3,169,417
3,169,417
Fund Balance (deficit) - End of Year
$ - $
-
$ 4,120,747
$ 4,120,747
198
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, 2018
Revenues:
Intergovernmental Revenues
Other
Total Revenues
Community Redevelpment Areas
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
Net Change in Fund Balance
Fund Balance (deficit) - Beginning of Year
Fund Balance (deficit) - End of Year
Budgeted Amounts
Variance with
Original
Final
Actual Amounts
Final Budget
$ 289,000 $
689,000
$ 599,000 $
(90,000)
225,000
240,000
30,000
(210,000)
514,000
929,000
629,000
(300,000)
514,000
929,000
726,725
202,275
514,000
929,000
726,725
202,275
(97,725) (97,725)
(97,725) (97,725)
331,324 331,324
$ - $ - $ 233,599 $ 233,599
199
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, 2018
Budgeted Amounts
200
Variance with
Original
Final
Actual Amounts
Final Budget
Revenues:
Intergovernmental Revenues
$ - $
-
$ 313,350
$ 313,350
Charges for Services
716,800
716,800
441,981
(274,819)
Investment Earnings (Loss)
-
-
4,303
4,303
Other
50,000
50,000
192,024
142,024
Total Revenues
766,800
766,800
951,658
184,858
Parks and Recreation
1,054,800
1,054,800
889,791
165,009
Capital Outlay
12,000
12,000
10,078
1,922
Total Expenditures
1,066,800
1,066,800
899,869
166,931
Excess (Deficiency) of Revenues Over (Under) Expenditures
(300,000)
(300,000)
51,789
351,789
Other Financing Sources (Uses):
Transfers In
300,000
300,000
-
(300,000)
Total Other Financing Sources (Uses)
300,000
300,000
-
(300,000)
Net Change in Fund Balance
-
-
51,789
51,789
Fund Balance (deficit) - Beginning of Year
23,113
23,113
Fund Balance (deficit) - End of Year
$ - $
-
$ 74,902
$ 74,902
200
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - Solid Waste RecyclingTrust
For The Fiscal Year Ended September 30, 2018
Revenues:
Investment Earnings (Loss)
Other
Total Revenues
Public Works
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
Net Change in Fund Balance
Fund Balance (deficit) - Beginning of Year
Fund Balance (deficit) - End of Year
Budgeted Amounts
Variance with
Original
Final
Actual Amounts
Final Budget
$ 10,000 $
10,000
$ 17,184
$ 7,184
141,000
133,000
-
(133,000)
151,000
143,000
17,184
(125,816)
151,000
143,000
39,284
103,716
151,000
143,000
39,284
103,716
-
-
(22,100)
(22,100)
-
-
(22,100)
(22,100)
1,132,906
1,132,906
$ - $
-
$ 1,110,806
$ 1,110,806
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, 2018
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
Revenues:
Total Revenues $ - $ - $ - $ -
Public Facilities 1,420,000 1,420,000 1,420,000
Total Expenditures 1,420,000 _1,420,000 - 1,420,000
Excess (Deficiency) of Revenues Over (Under) Expenditures (1,420,000) (1,420,000) - 1,420,000
Other Financing Sources (Uses):
Transfers In
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance (deficit) - Beginning of Year
Fund Balance (deficit) - End of Year
1,420,000 1,420, 000 1,420, 000
1,420,000 1,420,000 1,420,000
11420,000 1,420,000
$ - $ - $ 1.420.000 $ 1,420,000
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, 2018
Revenues:
Property Taxes
Investment Earnings (Loss)
Total Revenues
General Government
Principal
Interest and Other Charges
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
Net Change in Fund Balance
Fund Balance (deficit) - Beginning of Year
Fund Balance (deficit) - End of Year
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
$ 27,978,000 $
27,978,000 $
28,017,811 $
39,811
-
32,876
32,876
27,978,000
27,978,000
28,050,687
72,687
3,660,000
3,660,000
9,557
3,650,443
18,097,000
18,097,000
20,255,000
(2,158,000)
6,221,000
6,221,000
3,941,109
2,279,891
27,978,000
27,978,000
24,205,666
3,772,334
-
-
3,845,021
3,845,021
-
-
3,845,021
3,845,021
-
5,580,816
5,580,816
$ S
- $
9,425,837 $
9,425.837
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, 2018
Other Financing Sources (Uses):
Transfers In 43,805,000 43,805,000 43,805,000 -
Proceeds Received from Refunding - - 83,045,000 83,045,000
Payment To Escrow Agent For Refunding - - (74,105,000) (74,105,000)
Issuance of Debt 87,000,000 (87,000,000)
Total Other Financing Sources (Uses) 43,805,000 130,805,000 52,745,000 (78,060,000)
Net Change in Fund Balance - - (2,987,879) (2,987,879)
Fund Balance (deficit) - Beginning of Year - 35,092,296 35,092,296
Fund Balance (deficit) - End of Year $ - $ - $ 32,104,417 $ 32104,417
204
Budgeted Amounts
Variance with
Original
Final
Actual Amounts
Final Budget
Revenues:
Intergovernmental Revenues
$ 4,000,000
$ 4,000,000
$ 4,000,000
$ -
Investment Earnings (Loss)
-
-
130,351
130,351
Other
4,179,000
4,679,000
(4,679,000)
Total Revenues
8,179,000
8,679,000
4,130,351
(4,548,649)
General Government
2,006,000
2,006,000
374,893
1,631,107
Principal
29,252,300
116,252,300
30,494,962
85,757,338
Interest and Other Charges
20,725,700
21,225,700
28,993,375
(7,767,675)
Total Expenditures
51,984,000
139,484,000
59,863,230
79,620,770
Excess (Deficiency) of Revenues Over (Under) Expenditures
(43,805,000)
(130,805,000)
(55,732,879)
75,072,121
Other Financing Sources (Uses):
Transfers In 43,805,000 43,805,000 43,805,000 -
Proceeds Received from Refunding - - 83,045,000 83,045,000
Payment To Escrow Agent For Refunding - - (74,105,000) (74,105,000)
Issuance of Debt 87,000,000 (87,000,000)
Total Other Financing Sources (Uses) 43,805,000 130,805,000 52,745,000 (78,060,000)
Net Change in Fund Balance - - (2,987,879) (2,987,879)
Fund Balance (deficit) - Beginning of Year - 35,092,296 35,092,296
Fund Balance (deficit) - End of Year $ - $ - $ 32,104,417 $ 32104,417
204
City of Miami, Florida
Schedule of Revenue, Expenditures and Changes In Fund Balance
Budget and Actual - CRA Other Special Obligation Bonds
For The Fiscal Year Ended September 30, 2018
Revenues:
Investment Earnings (Loss)
Total Revenues
Community Redevelpment Areas
Principal
Interest and Other Charges
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers In
Issuance of Debt
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance (deficit) - Beginning of Year
Fund Balance (deficit) - End of Year
Budgeted Amounts
Variance with
Original Final Actual Amounts Final Budget
$ $ $ 3,157 $ 3,157
3,157 3,157
- 217,515 (217,515)
- 2,850,000 (2,850,000)
2,364,661 (2,364,661)
- 5,432,176 (5,432,176)
_ (5,429,019) (5,429,019)
- 5,214,661 5,214,661
- 2,770,000 2,770,000
- 7,984,661 7,984,661
- 2,555,642 2,555,642
$ - $ - $ 2.555.642 $ 2,555,642
205
Fiduciary Funds are used to account for assets held by the City in a trustee capacity.
FIREFIGHTERS N € OLICE OFFICERS (FII )
This Pension Trust Fund is used to account for the accumulation of resources to be used for
the payment of retirement benefits to Police and Firefighters. Resources are contributed by
employees at rates fixed by law and by the City at amounts determined by annual actuarial
valuations.
GENERAL EMPLOYEES AND SANITATION EM -PL OYEE (GESE)
These Pension Trust Funds are used to account for the three separate GESE Plans (GESE
Members, Excess Plan and Staff Plan). The funds are used to account for the accumulation
of resources to be used for the payment of retirement benefits to City employees, other
than police and firefighters. Resources are contributed by employees at rates fixed by
law and by the City at amounts determined by annual actuarial valuations.
CITY OF MIAMI ELECTED OFFICERS' RETIREMENT TRUST (E RT)
This Fund is used to account for the accumulation of resources to be used for the payment
of retirement benefits to elected officials. Resources are contributed by the City in amounts
determined by annual actuarial valuations.
206
Assets
Cash and Cash Equivalents
Accounts Receivable
Capital Assets, Net
Investments:
U.S. Government Obligations
Corporate Bonds
Corporate Stocks
Money Market Funds and Commercial Paper
International Equity
Real Estate
Private Equity
Absolute Return Funds
Total Investments
Securities Lending Collateral
Total Assets
City of Miami, Florida
Combining Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2018
Employee Retirement Funds
General and
General and
General and Sanitation
Sanitation
Sanitation Employees
Employees Staff Elected Officers Total Employee
Fire Fighters and Employees (GESE Excess
Plan (GESE Retirement Trust Retirement
Police (FIFO) (GESE) Plan)
Staff Plan) (EORT) Funds
$ 51,915,921
$ 474,359 $ 29,839 $ 82,745 $
- $ 52,502,864
4,446,032
3,757,283 18,177 5,000
- 8,226,492
1,743,557
1,438,710
3,182,267
58,105,510
5,670,352 48,016 87,745
- 63,911,623
120,172,745
107,958,385
- - 2,490,225 230,621,355
248,446,185
68,574,982
- 1,016,069 - 318,037,236
478,187,607
499,478,556
- 3,164,224 - 980,830,387
-
25,319,528
- - 4,712,917 30,032,445
258,016,522
-
- - - 258,016,522
179,279,484
-
- - - 179,279,484
156,839,046
-
- - - 156,839,046
75,013,697
75,013,697
1,515,955,286
701,331,451
- 4,180,293 7,203,142 2,228,670,172
143,720,934 143,720,934
1,717,781,730 707,001,803 48,016 4,268,038 7,203,142 2,436,302,729
Liabilities
Obligations Under Security Lending Transactions 143,720,934 - - - - 143,720,934
Accounts Payable - 845,008 48,016 6,029 - 899,053
Accrued Liability 1,250,601 - - - - 1,250,601
Payable for Securities Purchased 6,127,819 1,626,897 - - - 7,754,716
Total Liabilities 151,099,354 2,471,905 48,016 6,029 - 153,625,304
Net Position
Restricted for Pension Benefits
$ 1,566,682,376 $ 704,529,898 $ - $ 4,262,009 $ 7,203,142 $ 2,282,677,425
207
City of Miami, Florida
Combining Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Fiscal Year Ended September 30, 2018
Additions
Contributions:
Employer
Plan Members
Total Contributions
Investment Earnings:
Net Increase in Fair Value of Investments
Interest
Dividends
Other
Total Investment Earnings
Security Lending Activities:
Security Lending Income
Security Lending Fees and Rebates
Net Income From Security Lending Activities
Less Investment Expenses
Net Investment Earnings
Employee Retirement Funds
$ 40,879,285
General and
General and
$ 99,296,827
General and Sanitation
Sanitation
Total
Sanitation Employees
Employees Staff Elected Officers
Employee
Fire Fighters and Employees (GESE Excess
Plan (GESE Retirement Trust
Retirement
Police (FIFO) (GESE) Plan)
Staff Plan) (EORT)
Funds
$ 56,999,866
$ 40,879,285
$ 587,959 $ 276,246
$ 553,471
$ 99,296,827
14,258,763
10,847,473
32,621
587,959 344,159
25,138,857
71,258,629
51,726,758
587,959 308,867
553,471
124,435,684
Distribution to Retirees
25,279,985
-
- -
82,691,975
52,028,523
- 340,143
93,207
135,153,848
16,685,484
5,912,897
- -
-
22,598,381
9,584,728
4,480,800
- 84,228
-
14,149,756
233,980
34,290
1,551,350,461
667,854,473
268,270
109,196,167
62,456,510
- 424,371
93,207
172,170,255
646,466
- 646,466
(161,508)
484,958
(7,385,119) (2,179,681) (9,564,800)
102,296,006 60,276,829 - 424,371 93,207 163,090,413
Reimbursement From City for Administrative Costs 3,075,182 100,823 3,176,005
Total Additions 173,554,635 115,078,769 688,782 733,238 646,678 290,702,102
Deductions
Benefits/Payments
130,598,647
72,722,490
587,959 344,159
325,800
Refunds upon Resignation, Death, Other
214,654
2,318,219
- 7,606
-
Distribution to Retirees
25,279,985
-
- -
-
Administrative and Other Expenses
2,129,434
3,362,635
100,823
2,400
Total Deductions
158,222,720
78,403,344
688,782 351,765
328,200
Change in Net Position
15,331,915
36,675,425
- 381,473
318,478
Net Position- Beginning of Year, As Restated (Note 15)
1,551,350,461
667,854,473
3,880,536
6,884,664
Net Position- End of Year
$ 1,566,682,376
$ 704,529,898
$ 4,262,009
$ 7,203,142
208
204,579,055
2,540,479
25,279,985
5.595.292
237,994,811
52,707,291
2,229,970,134
$ 2,282,677,425
This part of the City's comprehensive annual financial report presents detailed information
as a context for understanding what the information contained in the financial statements,
note disclosures, and required supplementary information says about the City's overall
financial health.
FINANCIAL TRENDS
These schedules contain trend information to help the reader understand how the City's
financial performance and well-being have changed over time.
REVENUE CAPACITY
These schedules contain information to help the reader assess the City's most significant
local revenue source, the property tax.
DEBT CAPACITY
These schedules present information to help the reader assess the affordability of the City's
current levels of outstanding debt and the City's ability to issue additional debt in the future.
DEMOGRAPHIC AND ECONOMIC INFORMATION
TI
These schedules offer demographic and economic indicators to help the reader understand
the environment within which the City's financial activities take place.
{OPERATING INFORMATION
These schedules contain service and infrastructure data to help the reader understand how
the information in the City's financial report relates to the services the City provides and the
activities it performs.
209
CITY OF MIAMI, FLORIDA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCURAL BASIS OF ACCOUNTING)
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Primary Government
Net Investment in Capital Assets
$ 578,092,580 $
627,800,618 $
616,752,804 $
614,080,419 $
651,485,412 $
626,017,000 $
657,452,000 $
693,247,000 $
752,507,000 $
791,006,000
Restricted
401,755,649
297,600,108
273,730,365
237,584,556
86,209,162
93,376.000
90.078,000
95,873,000
88,297,000
77,577,000
Unrestricted (Defici1)
(1,581,291,781)
(1,431,127,427)
(1,224,962,154)
(1,163.152,81,1)
(947,529.448)
(327,113,000)
(331.776000)
(341,277,000)
(306,024,000)
(242,954,000)
Total Primary Government Net Position
$ (601,443,552) $
(505,726,701) $
(334:178'185) $
(311487,886) $
(209,834.874) $
392,280,000 $
415,754X00 %
447,843,000 $
534,780,000 $
625,629,000
Note
(1) The ON dews not have any businwx-bpe act -1- for financial repotting plapnses
N_
O
CITY OF MIAMI
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Program Revenues
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
Expenses
Governments] Activities:
General Government
S 162,800,242 $
174,982,174 S
145,455,559 $
167,055,389 $
240,815,051 $
144,400,178 $
104,495,000 S
164,006,000 $
152.727,000 $
155,198,000
Planning and Development
22,721,335
19,462,678
15,513,166
15,479,449
50,647,846
11,688,186
16,397,000
10,801,000
12,019,000
15,465,000
Community Development
28,371,102
29,443,452
27,937,279
30,519,798
45,476,324
38,926,526
38,100,000
40,852,000
39,655,000
37,126,000
Community Redevelpment Areas
35,272.784
34,616,272
36,149,769
58,062,764
18,087,177
20,836,076
17,041,000
4,696,000
29,288,000
20,566,000
Public Works
123,517,711
95,595.175
91,985,468
76.035,122
156,036,690
69,241,668
83,062,000
65,604,000
69,970,000
72,003,000
Public Safetv
387,651,946
579,366,645
446,865,144
385,120,293
776,125,991
337.347,418
352,869,000
333,431,000
371,351,000
375,402,000
Public Facilities
22.371,164
19,086,773
16,758,483
16,560,573
23,126,368
15,403,258
16,330,000
11,242,000
16,848,000
13,179,000
Parks and Recreation
66,817,655
63,380,712
50,207,864
42,585,419
78,558,325
43.340,882
44,977,000
39,223,000
39,776,000
43,441,000
Interest on Long -Tema Debt
25,405,481
29,663,407
32,606,891
33,747,629
31,932,034
43,544 000
37,426,000
43,336,000
27,533,000
36,091,000
Contribution to Pon Tunnel
-
-
-
-
-
-
-
50,000,000
-
-
Total Primary Government Expenses
874,929,420
1,045,597,288
863,479,623
825,166,436
1,420,805;808
724,728,191
710,697,000
763,191,000
759,167,000
768,471,000
Program Revenues
Governmental Activities:
Charges for Services
General Government
79,797,772
80,722,098
78,089,981
66,307,491
65,821,177
50,684,922
51,265,000
48,814,000
38,703,000
35,587,000
Planning and Development
45,574,467
46,837,017
47,586.059
45.385,722
36,879,821
18,848,000
15,328,000
13,125,000
9.719,000
9,611,000
Community Development
538,541
-
1.766,173
5,009.547
824.248
1,555,000
709,000
1,585,000
155,000
-
Community Redevelpment Areas
4,332,416
1,998.138
2,157,456
1,138,695
416.337
62,000
39,000
224,000
1.275,000
1,065,000
Public Works
61,719,832
58,727,450
56,594,045
54.021.469
50,279.793
47,178,270
41,533,000
49,349,000
46,480,000
47,792,000
Public Safety
39,758,748
29,475,920
28,477,126
24,708,571
25,426,372
26,207,867
23,321,000
15,997,000
22,152,000
17,785,000
Public Facilities
35,922,412
37,720,512
35,324,297
37.455,509
30,925,509
29.219,001
27,353,000
18,244,000
14,636,000
15,459,000
Parks and Recreation
6,958,019
7,741,695
7,845,180
8,454,738
5,613,643
7,111,007
7,184,000
6,224,000
6.247,000
4,827,000
Operating Grants and Contributions
95,524,077
81,114,292
88,478,479
84,631,766
105,483,092
103,176,700
88,608,000
94,339,000
73,139,000
64,646,000
Capital Grants and Contributions
9,069,762
1,078.796
11,315,519
9,253,860
2,598,400
17.042,000
29,303,000
21,824,000
27,113,000
33,964.000
Total Primary Government Program Revenue
379,196,046
345,415,918
357,634,315
336,367,368
324,268,392
301,084,767
284,643,000
269,725,000
239,619,000
230,736,000
Net(Expense)/Revenue
Total Primary Government Net Expense
(495.733.374)
(700.181.370)
(505,845.308)
(488,799,068)
(1.096,537.416)
(423,643.424)
(426,054,000)
(493,466,000)
(519.548,000)
(537.735,000)
General Revenues and Other Changes in Net Assets
Govemmental Activities:
Tares
Property Taxes, Levied for General Purposes
369,230,063
336,475,508
298,719,456
269,303,313
241,721,842
232,082,786
223,386,000
233,193,000
264,548,000
283,516,000
Property Tares. Levied for Debt Service
28,017,811
26 964,194
25,661,731
24,848,727
24,853,248
26,425,030
26,887,000
28,132,000
22,663,000
21,378.000
Franchise Taxes
49,741,913
49,207,879
47,416,360
47,560,134
46,311,659
44,698,943
44,650,000
44,882,000
43,121,000
42,824,000
State Revenue Sharing - Unrestricted
16,380,921
15,687,260
14,836,385
14,389,530
13,389,054
12,673,362
12,367,000
11,430,000
10,515,000
22,567,000
Sales and Other Use Taxes
35,786,997
33,521,269
32,699,735
31,254,199
29,490,981
27,737,964
25,803,000
25,988,000
22,666,000
22,567,000
Public Service Taxes
64,250,989
62,532,940
60,020,384
59,576,109
60,395,502
59,322,198
58,046,000
59,427,000
61.967,000
64,010,000
Investment Earnings(Losses)- Unrestricted
9,681,342
4,544,604
3,500,158
4,761,254
4,298,129
(2,653,269)
2,826,000
2,393,000
3,218,000
7,718,000
Gain (Loss) on Disposal of Capital Assets
-
-
-
(546,835)
9,960,348
(115,656)
-
1,087,000
-
Other General Revenues
-
-
-
-
-
-
-
-
-
378.000
Total Primary Government
573,090036
528,933,654
482,854,209
451,146,431
430,420,763
400.171,358
393,965.000
406,532,000
428,698.000
464,958,000
Change in Net Position
Total Primary Government 77,356,662 (171,247,716) (22,991,099) (37,652,637) (666,116,653) (23,472,066) (32,089,000) (86,934,000) (90,850,000) (72,777,000)
Notes: (1) The City does not have any business -type activities for financial reporting purposes.
CITY OF MIAMI, FLORIDA
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
`M
Ad Valorem
Ad Valorem
Sales and
Fiscal
Taxes General
Taxes Debt
Other Use
Communication
Year
Purpose
Service
Franchise Taxes
Taxes
Service Taxes
Total
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
2013
232,082,786
26,425,030
44,698,943
27,737,964
59,322,198
390,266,921
2012
223,386,064
26,887,032
26,649,826
17,793,928
58,045,986
352,762,836
2011
233,193,302
28,131,853
44,881,126
25,987,633
59,426,883
391,620,797
2010
264,548,387
22,662,573
43,120,713
22,665,743
61,966,455
414,963,871
2009
283,516,182
21,377,549
42,823,572
22,566,791
64,010,537
434,294,631
`M
Fund Balances (Deficit):
Non -Spendable Fund Balance
Non Spendable
Spendable Fund Balance
Restricted
Committed
Assigned
Unassigned (deficit)
Total Fund Balances (Deficit)
CITY OF MIAMI,FLORIDA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST EIGHT FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
2018 2017 2016 2015 2014 2013 2012 2011
3,181,065 $ 3,123,531 $ 3,033,309 $ 3,474,396 $ 3,975,000 $ 3,554,000 $ 8,141,000 $ 4,897,000
401,731,979
338,319,610
310,576,099
297,118,841
226,564,000
261,858,000
333,199,000
382,134,000
107,646,577
121,083,524
133,813,871
92,342,101
110,418,000
20,881,000
16,512,000
18,349,000
62,505,392
44,647,057
44,240427
61,350,740
56,487,000
73,642,000
52,161,000
18,908,000
46,904,276
59,618,612
36,487.814
58,533,534
54,180,000
(3,399,000)
(9,324,000)
(4,978,000)
$ 621,969,289 $
566,792,334 $
528,151,220 $
512,819,612 $
451,624,000 $
356,536,000
$ 400,689,000
$ 419,310,000
Note: Years prior to fiscal year 2010 have not been presented due to the implementation of GASB Statement No. 54, which provided
for new categories for classifying governmental fund balances. Changes to the fund balance is being presented prospectively.
N_
W
CITY OF MIAMI, FLORIDA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Expenditures
2018
2017
2016
2015
2014
Revenues
117,223,208
113,687,204
94,863,916
95,097,965
93,266,684
Property Taxes
$ 397,247,874 $
363,439,702 $
324,381,187 $
294,152,040 $
266,575,890
Franchise and Other Taxes
113,992,902
111,740,819
107,436,744
107,136,243
106,706,981
Licenses and Permits
73,756,786
73,030,964
71,826,609
65,136,838
60,905,490
Fines and Forfeitures
15,638,528
17,727,789
17,022,156
13,606,546
12,633,258
Intergovernmental Revenues
156,349,299
131,983,836
144,464,881
144,172,756
147,318,713
Charges for Services
133,732,658
131,422,481
128,520,198
127,031,324
109,858,728
Investment Earnings (Loss)
9,681,342
4,544,604
3,500,158
4,761,254
4,298,129
Impact Fees
20,861,463
25,347,222
25,491,632
20,848,627
21,561,620
Other
30,612,771
15,694,374
14,979,722
15,858,407
11,227,804
Total Revenues
951,873,623
874,931,791
837,623,287
792,704,035
741,086,613
Expenditures
General Government
117,223,208
113,687,204
94,863,916
95,097,965
93,266,684
Planning and Development
22,526,541
18,478,112
16,530,501
17,528,545
13,886,927
Community Development
28,331,999
29,059,382
27,669,432
30,618,655
32,773,187
Community Redevelpment Areas
33,972,903
33,155,840
35,240,353
57,374,849
16,496,169
Public Works
113,249,970
93,603,216
88,781,332
72,332,848
64,762,823
Public Safety
398,331,195
377,635,776
358,151,070
320,578,664
309,032,876
Public Facilities
18,098,100
16,095,228
14,172,514
14,182,077
11,558,522
Parks and Recreation
53,971,624
50,122,922
40,252,541
34,176,174
30,933,658
Contribution to Port Tunnel
-
-
-
-
-
Organizational Support
-
-
-
-
-
Debt Service:
-
(67,900)
-
-
-
Principal
53,599,962
42,848,297
31,666,421
23,134,356
47,423,659
Interest and Other Charges
35,299,145
33376,755
37,407,853
43,562,774
42,414,727
Debt Issuance Costs
-
-
-
-
-
Capital Outlay
80,821,666
80,312,188
88,247,094
87,743,237
65,700,078
Total Expenditures
955,426,313
888,374,920
832,983,027
796,330,144
728,249,310
Excess (Deficiency) of Revenues
Over (Under) Expenditures (3,552,690) (13,443,129) 4,640,260 (3,626,109) 12,837,303
Other Financing Sources (Uses)
Transfers In
118,757,528
115,984,813
134,391,945
113,353,457
130,317,671
Transfers Out
(118,757,527)
(115,984,813)
(134,391,945)
(113,353,457)
(130,317,670)
Proceeds from Sale of Property
277,969
787,221
441,720
1,957,890
10,607,538
Proceeds Received from Refunding
83,045,000
114,380,000
57,240,000
-
-
Payment To Escrow Agent For Refunding
(74,105,000)
(112,330,000)
(57,635,000)
-
-
Proceeds Received From Long -Term Debt
-
-
-
-
-
Premium from Issuance of Debt
-
-
-
-
4,330,862
Issuance of Debt
49,511,675
49,314,922
10,644,628
-
73,934,380
Capital Leases
-
-
-
-
-
Sale of Capital Assets
-
-
-
-
-
Discount from Issuance of Debt
-
(67,900)
-
-
-
Total Other Financing Sources (Uses)
58,729,645
52,084,243
10,691,348
1,957,890
88,872,781
Net Changes in Fund Balances
$ 55,176,955 $
38.641,114 $
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%
(continued)
214
CITY OF MIAMI, FLORIDA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Revenues
Property Taxes
Franchise and Other Taxes
Licenses and Permits
Fines and Forfeitures
Intergovernmental Revenues
Charges for Services
Investment Earnings (Loss)
Impact Fees
Other
Total Revenues
Expenditures
General Government
Planning and Development
Community Development
Community Redevelpment Areas
Public Works
Public Safety
Public Facilities
Parks and Recreation
Contribution to Port Tunnel
Organizational Support
Debt Service:
Principal
Interest and Other Charges
Debt Issuance Costs
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses)
Transfers In
Transfers Out
Proceeds from Sale of Property
Proceeds Received from Refunding
Payment To Escrow Agent For Refunding
Proceeds Received From Long -Term Debt
Premium from Issuance of Debt
Issuance of Debt
Capital Leases
Sale of Capital Assets
Discount from Issuance of Debt
Total Other Financing Sources (Uses)
Net Changes in Fund Balances
Debt Service as a Percentage
of Non -Capital Expenditures
2013 2012 2011 2010 2009
$ 258,507,816 $ 250,273,000 $ 261,325,000 $ 287,211,000 $ 304,894,000
104,021,141
102,696,000
104,309,000
105,090,000
106,834,000
35,894,264
35,726,000
34,031,000
25,348,000
26,105,000
11,822,487
5,538,000
6,454,000
5,208,000
7,441,000
169,377,430
152,3 87,000
170,755,000
153,416,000
141,254,000
123,088,110
106,717,000
94,711,000
88,420,000
85,927,000
(2,653,269)
2,826,000
2,393,000
3,218,000
7,718,000
9,121,554
4,338,000
1,355,000
12,000
332,000
7,446,994
14,934,000
10,102,000
9,106,000
10,757,000
716,626,527
675,435,000
685,435,000
677,029,000
691,262,000
94,333,429
187,595,000
166,671,000
180,608,000
158,902,000
11,938,108
7,922,000
8,328,000
9,340,000
11,350,000
38,461,763
36,706,000
40,432,000
39,158,000
36,413,000
20,408,076
22,041,000
4,395,000
29,084,000
20,144,000
63,269,335
48,949,000
46,644,000
51,337,000
55,173,000
311,799,509
221,066,000
218,698,000
249,749,000
266,285,000
12,422,038
12,708,000
9,803,000
12,556,000
11,660,000
32,461,502
25,879,000
26,540,000
27,545,000
33,211,000
-
-
50,000,000
-
-
-
-
30,524,000
32,219,000
41,315,000
73,066,874
22,934,000
29,492,000
27,261,000
23,566,000
44,111,501
41,185,000
39,648,000
38,065,000
31,928,000
-
-
2,048,000
-
-
52,579,857
66,897,000
113,888,000
55,696,000
106,863,000
754,851,992
693,882,000
787,111,000
752,618,000
796,810,000
(38,225,465) (18,447,000) (101,676,000) (75,589,000) (105,548,000)
79,854,462 114,263,000 100,560,000
(79,854,460) (114,263,000) (100,560,000)
304,345 - 1,087,000
- - 68,894,000
- (68,572,000)
- 1,712,000
50 028 639 51 751 000
146,557,000
(146,557,000)
196,099,000
(196,099,000)
(32,366,000)
108,490,000
(794,000)
(1,392,000) -
166,370,000 -
50,332,986 - 54,872,000 164,978,000 75,330,000
$ 12,107,521 $ (18,447,000) $ (46,804,000) $ 89,389.000 $ (30,218,000)
16.69% 10.23% 10.27% 9.37% 8.04%
215
CITY OF MIAMI, FLORIDA
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
216
Ad Valorem
Ad Valorem
Sales
Communication
Fiscal
Taxes
Taxes
Franchise
and Other
Service
Year
General Purpose
Debt Service
Taxes
Use Taxes
Taxes
Total
2018
$ 369,230,063
$ 28,017,811
$ 49,741,913
$ 35,786,997
$ 64,250,989
$ 547,027,773
2017
336,475,508
26,964,194
49,207,879
33,521,269
62,532,940
508,701,790
2016
298,719,456
25,661,731
47,416,360
32,699,735
60,020,384
464,517,666
2015
269,303,313
24,848,727
47,560,134
31,254,199
59,576,109
432,542,482
2014
241,722,642
24,853,248
46,311,659
29,490,981
60,395,322
402,773,852
2013
232,082,786
26,425,030
44,698,943
27,737,964
59,322,198
390,266,921
2012
223,386,000
26,887,000
44,650,000
25,803,000
58,046,000
378,772,000
2011
233,193,000
28,132,000
44,882,000
25,988,000
59,427,000
391,622,000
2010
264,548,000
22,663,000
43,122,000
22,666,000
61,968,000
414,967,000
2009
283,516,000
21,378,000
42,824,000
22,567,000
64,010,000
434,295,000
216
V
Fiscal Year
Ended
September 30,
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
CITY OF MIAMI, FLORIDA
NET ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Real Property
Residential
Property
$ 32,694,764,561
30,510,541,198
27,319,085,749
24,605,804,321
21,934,172,831
20,102,680,659
19,106,566,634
18,536,983,090
23,341,894,079
23,572,178,928
Commercial
Property
$ 18,370,692,628
16,942,681,891
15,141,552,949
13,199,485,300
11,333,504,297
10,558,773,418
10,336,397,326
10,078,997,005
11,921,087,043
11,890,691,413
Source: Miami -Dade Country Property Appraiser's Office.
Personal
Property
$ 2,291,647,844
2,168,086,910
2,141,666,844
2,097,769,007
2,017,164,410
2,074,115,500
1,890,870,077
1,736,766,113
1,686,540,244
1,686,320,651
Net
Assessed
Value
$ 53,357,105,033
49,621,309,999
44,602,305,542
39,903,058,628
35,284,841,538
32,735,569,577
31,333,834,037
30,352,746,208
36,949,521,366
37,149,190,992
Total
Direct
Tax Rate
8.0300
8.2900
8.3351
8.3850
8.4310
8.4710
8.5010
8.6441
8.3335
8.2543
Estimated
Actual
Value
$ 71,868,917,720
66,582,430,165
60,628,790,417
54,280,943,197
44,910,824,446
39,674,594,000
43,557,261,093
42,365,151,484
52,146,883,603
52,185,972,858
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)
74.24%
74.53%
73.57%
73.51%
78.57%
82.51%
71.94%
71.65%
70.86%
71.19%
CITY OF MIAMI, FLORIDA
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
City of Miami, Florida
Fiscal
Tax Roll
General
Debt
Total
Year
Year
Operations
Service
City
2018
2017
7.58650
0.4435
8.0300
2017
2016
7.64650
0.6435
8.2900
2016
2015
7.64650
0.6886
8.3351
2015
2014
7.64650
0.7385
8.3850
2014
2013
7.61480
0.8162
8.4310
2013
2012
7.57100
0.9000
8.4710
2012
2011
7.57100
0.9300
8.5010
2011
2010
7.67400
0.9701
8.6441
2010
2009
7.67400
0.6595
8.3335
2009
2008
7.67400
0.5803
8.2543
Overlapping Rates (1)
co
Sources: City of Miami, Florida Finance Department and Miami -Dade County Property Appraiser's Office.
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).
South Florida
Total
Miami -Dade
Miami -Dade
Miami -Dade
Water
Florida Inland
Direct and
County School
Miami -Dade
Children's
County Library
Management
Environmental
Navigation
Overlapping
Board
County
Trust
System
District
Projects
District
Rates
6.9940
5.0669
0.4673
0.2840
0.2659
0.0441
0.0320
21.18420
7.3220
5.0669
0.5000
0.2840
0.2836
0.0471
0.0320
21.82560
7.6120
5.1169
0.5000
0.2840
0.3045
0.0506
0.0320
22.23510
7.9740
5.1169
0.5000
0.2840
0.3294
0.0548
0.0345
22.67860
7.9770
5.1255
0.5000
0.1725
0.3523
0.0587
0.0345
22.65150
7.9980
4.9885
0.5000
0.1725
0.3676
0.0613
0.0345
22.59340
8.0050
5.0900
0.5000
0.1795
0.3739
0.0624
0.0345
22.74630
8.2490
5.8725
0.5000
0.2840
0.5346
0.0894
0.0345
24.20810
7.9950
5.1229
0.5000
0.3822
0.5346
0.0894
0.0345
22.99210
7.7970
5.1229
0.4212
0.3822
0.5346
0.0894
0.0345
22.63610
co
Sources: City of Miami, Florida Finance Department and Miami -Dade County Property Appraiser's Office.
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).
CITY OF DZIAMI, FLORIDA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
2018 2009
Taxpayer
Net
Assessed
Value
Rank
Florida Power and Light
504,536,929
1
Ponte Gadea Biscayne LLC
400,008,202
2
Swire Properties
273,900,000
3
Oak Plaza Associates (DEL) LLC
248,104,884
4
CP Miami Center LLC
210,084,270
5
T C 701 Brickell LLC
197,970,911
6
MCPP WFC Maami LLC
169,191,000
7
1450 Brickell LLC
165,968,292
8
Brickell Holding LLC
161,590,000
9
Plantation General Hospital
158,737,321
10
Teachers Ins and Annuity Assoc of America
-
N/A
200 S Biscayne TIC 1 LLC
-
N/A
Bellsouth Telecommunications
-
N/A
Crescent Miami Center
-
N/A
1 111 Brickell Office LLC
-
N/A
Trustees of L and B
-
N/A
SHC Chopin Plaza LLC
-
N/A
Estoril Incorporated
-
N/A
Total S
2,490,091,809
N/A
Net Assessed Value- Citywide $ 53,357,105,033
Source: Miami -Dade Property Appraiser
219
Percent of
Percent of
Total
Total
City Net
Net
City Net
Assessed
Assessed
Assessed
Value
Value
Rank
Value
0.95%
334,097,704
1
0.90%
0.75%
-
NIA
N/A
0.51%
-
N/A
N/A
0.46%
-
N/A
N/A
0.39%
-
N/A
N/A
0.37%
-
N/A
N/A
0.32%
-
N/A
N/A
0.31%
115,064,000
8
0.31%
0.30%
-
N/A
N/A
0.30%
-
N/A
N/A
N/A
293,600,000
3
0.79%
N/A
304,500,000
2
0.82%
N/A
223,413,742
4
0.60%
N/A
186,100,000
5
0.50%
N/A
154,700,000
6
0.42%
N/A
123,900,000
7
0.33%
N/A
110,000,000
9
0.30%
N/A
107,400,000
10
0.29%
4.67%
$ 1,952,775,446
5.26%
$ 37,149,190,992
ITY OF MIAMI, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
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%.
220
Collected within
the Fiscal Year
Total Collections
of Levy
To Date
Fiscal Year
Total Taxes
Collections of
Ended
Levied for
Percent
Delinquent
Percent
September 30,
Fiscal Year
Amount
of Levy
Taxes
Amount
of Levy
2018
$ 407,034,676
$ 384,282,266
94.41%
$ 12,965,608
$ 397,247,874
97.60%
2017
390,792,627
350,970,845
89.81%
12,468,857
363,439,702
93.00%
2016
353,176,443
320,048,201
90.62%
4,332,986
324,381,187
91.85%
2015
315,966,185
286,106,822
90.55%
8,045,210
294,152,032
93.10%
2014
281,070,226
260,389,830
92.64%
6,206,637
266,596,467
94.85%
2013
262,193,908
251,210,062
95.81%
6,852,822
258,062,884
98.42%
2012
252,157,463
238,225,003
94.47%
12,048,092
250,273,095
99.25%
2011
258,028,695
240,648,308
93.26%
20,676,849
261,325,157
101.28%
2010
319,395,358
275,812,810
86.35%
11,398,150
287,210,960
89.92%
2009
309,582,783
298,355,830
96.37%
7,537,901
305,893,731
98.81%
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%.
220
CITY OF MIAMI, FLORIDA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities
Premium
Special
(Discounts)
Fiscal Year
General
Obligation and
Accretions
Total
Ended
Obligation
Revenue
Loans
Capital
September 30,
Bonds
Bonds
Payable
Leases
2018
$ 154,385,000
$ 461,893,102 $
12,867,726 $
36,567,264 $
2017
174,640,000
455,546,327
-
30,675,053
2016
189,735,000
451,965,127
-
10,644,628
2015
205,038,304
468,723,244
-
-
2014
217,378,253
479,517,651
1,236,279
-
2013
228,970,771
441,414,430
2,436,000
-
2012
239,988,415
407,366,796
54,971,864
-
2011
251,566,791
418,172,682
57,119,793
-
2010
265,804,455
358,571,022
79,902,293
-
2009
276,113,503
199,629,250
89,426,363
-
Premium
Percent of
(Discounts)
Personal
Per
Accretions
Total
Income (1)
Capita (1)
4,869,802
$ 670,582,894
0.00%
1,393
6,436,510
667,297,890
3.25%
1,426
8,547,344
660,892,099
3.14%
1,449
12,257,757
686,019,305
2.77%
1,561
21,334,989
719,467,172
2.43%
1,723
23,465,911
696,287,112
2.37%
1,682
-
702,327,075
2.21%
1,758
-
726,859,266
2.08%
1,820
-
704,277,770
2.09%
1,763
-
565,169,116
2.33%
1,559
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) See the Schedule of Demographic and Economic Statistics on page 226 for personal income and population data.
221
Fiscal Year
Ended
September 30,
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
CITY OF MIAMI, FLORIDA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
General
Obligation
Bonds
154,385,000
174,640,000
189,735,000
205,038,305
217,378,253
228,970,000
239,988,415
251,566,791
265,804,455
276,113,503
I
Less Amounts
Available in
Debt Service
Fund Total
9,425,837
5,580,816
3,449,542
1,810,610
3,053,873
3,588,864
1,951,991
336,520
(41,370)
1,496,363
144,959,163
169,059,184
186,285,458
203,227,695
214,324,380
225,381,136
238,036,424
251,230,271
265,845,825
274,617,140
Percentage of
Estimated
Actual Taxable
Value of
Property (1)
0.272%
0.341%
0.418%
0.509%
0.607%
0.688%
0.961%
0.906%
0.827%
0.702%
Per Capita
(2)
301
361
408
462
513
545
657
693
733
758
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements
(1) See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property on page 213
for property value data.
(2) See the Schedule of Demographic and Economic Statistics on page 222 for population data.
222
CITY OF MIAMI, FLORIDA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF SEPTEMBER 30, 2018
Percentage Amount
Net Applicable to Applicable to
Debt the City of the City of
Government Unit Outstanding Miami (1) Miami
Debt Repaid with Property Taxes:
Miami -Dade County $ 1,837,515,000 19.00% $ 349,127,850
Miami -Dade County School Board 954,152,000 19.00% 181,288,880
Subtotal, Overlapping Debt 530,416,730
City of Miami, Florida Direct Debt
(Includes special obligation, revenue bonds, loans, premium
(discount) accretion and capital leases) 670,582,894
Total Direct and Overlapping Debt $ 1.200.999,624
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.
223
CITY OF MIAMI, FLORIDA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
N
N
A
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
Debt Limit
$ 7,700,217,064
$ 7,144,383,602
$ 6,391,518,217
$ 5,688,668,194
$ 4,990,151,631
$ 4,599,936,687
$ 4,533,761,406
$ 4,383,368,881
$ 5,370,834,055
$ 5,372,349,749
Total Net Debt Applicable to Limit
144,959,163
133,966,888
186,262,069
203,204,305
214,300,991
225,381,907
238,036,415
251,229,541
265,845,455
274,617,503
Legal Debt Margin
$ 7,555,257,901
$ 7,010416,714
$ 6,205,256,148
$ 5,485,463,889
$ 4,775,850,640
$ 4,374,554,780
$ 4,295,724,991
$ 4,132,139,340
$ 5,104,988,600
$ 5,097,732 246
Total Net Debt Applicable to the
Limit as a percentage of Debt Limit
1.88%
1.88%
2.91 %
3.57".
4.29%
4.90%
5.25%
71%
4.95%
5 1 11!�.
Net Assesed Value
$ 53,357,105,033
Less Homestead Exempt Valuation
(2,022,324,607)
Total Assessed Value
$ 51,334,780,426
Debt Limit for Bonds
(15% ofTotal Assessed Value)
$ 7,700,217,064
Present Debt Application of Debt Limitation
General Obligation Debt
154,385,000
Less Amount Available in Debt Service
Fund
(9,425,837)
Total Net Debt Applicable to Limit
144,959,163
Legal Debt Margin
_L7,555.257,901
N
N
A
CITY OF MIAMI, FLORIDA
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
FiscalYear
Debt Service
Ended
Ad Valorem
2x Annual
September 30,
Revenues (1)
Principal
Interest
Debt Service
Coverage (2)
2018 $
397,247,874
$ 20,255,000
$ 3,941,109
48,392,218
8.21
2017
363,439,702
17,145,000
9,490,770
53,271,540
6.82
2016
324,381,187
14,908,304
9,123,918
48,064,444
6.75
2015
294,152,040
12,339,949
13,741,375
52,162,648
5.64
2014
266,575,890
11,592,499
13,780,696
50,746,390
5.25
2013
258,507,816
11,017,644
13,732,200
49,499,688
5.22
2012
250,273,095
11,578,375
13,673,035
50,502,820
4.96
2011
261,325,154
14,237,664
13,782,766
56,040,860
4.66
2010
287,210,960
10,309,047
13,865,476
48,349,046
5.94
2009
304,893,731
10,335,262
12,228,340
45,127,204
6.76
Note:
(1) Ad valorem revenues shall mean all legally available revenues and taxes of the governmental unit
in the Funds (defined as the general fund, special revenue funds, the capital project funds,
the special assessment funds, and the expandable trust fund(s)) derived from any source
whatever other than ad valorem taxation on real and personal property, including appropriated fund
balances in the funds and applicable operating transfers (in).
Non -Ad Valorem Revenues are required to be two times greater than projected debt service.
(2) The Sunshine State Government Financing Loans require that available non -ad valorem revenues be
two times the annual projected debt service for all debt other than general obligation debt of the City.
W-1
CITY OF MIAMI, FLORIDA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Sources:
(1) United States Census Bureau (From FY08 to FYI 2)
(2) Bureau of Economic Analysis, U.S. Department Commerce (From FY 13 to FY 18)
(3) Bureau of Economic Analysis, U.S. Department Commerce
(4) Miami -Dade County School Board Budget Office
(5) Florida Agency for Workplace Innovation, Office of Workplace Information Services, Labor Market Statistics
* FY 2018 Personal Income Information not available
226
Personal Income
(Amounts Expressed
Personal
School
Unemployment
Year
Population(1)(2)
in Thousands) (3)
Income(3)
Median Age (1)
Enrollment (4)
Rate (5)
2018
481,333
$ - $
-
39
354,172
4.1%
2017
467,872
21,680,253
46,338
39
356,086
4.6%
2016
456,089
20,724,684
45,440
39
356,480
5.0%
2015
439,509
19,021,071
43,278
39
355,913
5.5%
2014
417,650
17,492,435
41,883
39
349,553
5.6%
2013
413,892
16,506,013
39,880
38
348,230
9.3%
2012
399,457
15,522,899
38,860
38
345,635
9.9%
2011
399,457
15,113,056
37,834
38
347,133
11.5%
2010
399,457
14,738,365
36,896
38
345,458
11.1%
2009
362,470
13,178,322
36,357
38
345,570
11.1%
Sources:
(1) United States Census Bureau (From FY08 to FYI 2)
(2) Bureau of Economic Analysis, U.S. Department Commerce (From FY 13 to FY 18)
(3) Bureau of Economic Analysis, U.S. Department Commerce
(4) Miami -Dade County School Board Budget Office
(5) Florida Agency for Workplace Innovation, Office of Workplace Information Services, Labor Market Statistics
* FY 2018 Personal Income Information not available
226
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
City of Miami
Florida International University
Publix Super Markets
Miami -Dade College
Total
CITY OF MIAMI, FLORIDA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
2017(l
Employees
Rank
33,477
1
25,502
2
19,200
3
17,100
4
12,818
5
11,353
6
11,031
7
9,797
8
4,392
9
3,534
10
14X,LU4
Sources: The Beacon Council/U.S. Department of Labor -Bureau of Labor Statistics
City of Miami Budget Office
(1) Information is based on data from year 2017. The data for 2018 is not available
as of the date of this report.
227
2009
Percentage of
Percentage of
Total County
Total County
Employment
Employees
Rank
Employment
1.3%
50,000
1
2.1%
1.0°/O
32,000
2
1.4%
0.7%
20,400
3
0.9%
0.6%
17,000
4
0.7%
0.5%
9,874
8
0.4%
0.4%
10,826
6
0.5%
0.4%
9,000
9
0.4%
0.4%
10,500
7
0.4%
0.2%
0.1%
11,000
5
0.5%
6,500
10
0.3%
5.5%
177,100
7.5%
Sources: The Beacon Council/U.S. Department of Labor -Bureau of Labor Statistics
City of Miami Budget Office
(1) Information is based on data from year 2017. The data for 2018 is not available
as of the date of this report.
227
CITY OF MIAMI, FLORIDA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
Source: City of Miami, Budget Department
228
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
Number of Employees:
General Government
674
642
608
519
538
540
533
505
538
511
Planning and Development
169
152
138
135
126
124
111
96
102
123
Community Development
35
35
35
38
40
43
43
60
54
55
Public Works
572
573
517
506
452
443
442
442
436
521
Public Safety
2,599
2,580
2,548
2,448
2,338
2,286
2,282
2,283
2,368
2,390
Public Facilities
63
63
54
41
41
42
41
41
41
41
Parks and Recreation
300
301
279
196
192
178
178
182
186
265
Total Number of Employees
4,412
4.346
4,179
3,883
3,727
3,656
3,630
3,609
3,725
3,906
Source: City of Miami, Budget Department
228
Function/Program
Community Development:
Entitlements/Grants Received
Public Safety:
Police:
Part 1 Crimes - (1)
Part I Arrests - (1)
Part 2 Arrests - (2)
Fire:
Number of Fire Calls
Number of EMS Calls
Number of Alarms
Planning and Development:
Certificate of Use Permits Used
N Business Tax Receipts Issued
N
Culture and Recreation:
Summer Food Program - Meals Served
(Lunches)
Summer Food Program - Meals Served (Snacks)
Solid Waste:
Refuse Collected (Tons/Day)
Recyclables Collected (Tons/Day)
CITY OF MIAMI, FLORIDA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
$ 19,401 N/A $ 19,287 $ 19,034 $ 19,239 $ 18,794 $ 24,364 $ 33,491 $ 37,815 $ 26,275
20,360
23,269
23,043
23,709
25,208
25,898
28,070
27,045
26,097
25,761
3,188
2,456
3,239
3,108
3,715
3,837
4,166
4,295
4,393
4,536
17,205
17,898
21,732
22,564
27,580
26,329
25,155
22,269
26,670
32,826
15,285
19,090
14,445
13,970
12,736
13,131
15,122
16,686
14,493
10,411
82,711
86,865
87,977
86,038
83,697
79,544
79,279
81,638
76,747
73,017
97,996
105,955
102,422
100,008
96,433
92,675
94,401
98,324
91,240
83,428
25,779
22,018
26,739
21,191
23,399
20,860
20,907
20,775
20,156
22,724
24,144
21,592
26,661
22,566
33,877
29,686
23,117
22,478
29,548
22,092
N/A
N/A
N/A
N/A
123,925
119,603
98,129
92,737
59,785
N/A
N/A
N/A
N/A
N/A
123,425
122,512
106,449
87,963
62,983
N/A
709
693
562
693
675
643
586
551
566
N/A
45
56
52
39
48
52
14
14
11
N/A
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
Function/Program
2018
CITY OF MIAMI, FLORIDA
CAPITAL ASSETS STATISTICS BY FUNCTIONIPROGRAM
LAST TEN FISCAL YEARS
2017 2016 2015 2014 2013
Public Safety:
1
1
1
1
3
3
Police:
3
14
14
14
14
144
Police Stations
1
1
1
1
1
1
Police Sub -Stations
3
3
3
3
3
3
Fire:
897
894
894
894
127
112
Fire Stations
15
15
15
15
14
14
Solid Waste:
61
61
34
34
34
34
Collection Trucks
170
164
148
141
143
144
Public Works:
13
13
13
13
9
9
Streets (Miles - Paved)
661.9
661.9
663.2
663.5
663.5
663.8
Streets (Miles - Unpaved)
0.84
0.84
0.84
0.84
0.84
0.9
Transportation:
Street Resurfacing (Miles)
N/A
23.07
24.0
41.0
27.7
23.7
Culture and Recreation:
Parks Acreage
1,316
1,316
1,497
936
897
897
Parks
145
145
143
131
127
127
Swimming Pools
15
15
15
15
15
15
Tennis Courts
65
65
61
61
61
61
Community Centers
43
43
34
43
35
34
Basketball Courts
71
71
71
71
71
71
Water Playgrounds
6
6
5
5
4
4
Soccer Fields
15
15
15
15
15
15
Football Fields
9
9
9
9
9
9
Baseball Fields
30
30
30
30
30
30
Open Practice Fields
29
29
2
2
2
2
Cricket Field
-
-
-
1
1
1
Sources: Various City Departments.
Note: No Capital asset Indicators are available for the general government function.
N/A Information not available
230
2012
2011
2010
2009
1
1
1
1
3
3
3
3
14
14
14
14
144
160
160
NA
662.1
662.1
662.1
662.1
1.1
1.1
1.1
1.1
23.7
18.3
15.8
N/A
897
894
894
894
127
112
112
112
15
15
15
15
61
61
61
61
34
34
34
34
71
71
71
71
3
2
2
2
13
13
13
13
9
9
9
9
30
30
30
30
2
2
2
2
1
1
1
1
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231
About the Cover
View of Downtown Miami
The Finance Department would like to extend a special regognition to
Richard Rios, GSA -Graphics Reproduction Section, for his creativity
with the production of the Comprehensive Annual Financial Report.
City of Miami, Florida Finance Department
444 SW 2 Avenue, 6th Floor Miami, Florida 33130
232
FISCAL YEAR ENDED
September 30, 2018
www.miamigov.com 0 twitter.com/miamifinance305