LTC 187-2011 External Annual Audit Report CMB Ending 9/30/10 MIAMI BEACH
OFFICE OF THE CITY MANAGER
NO LTC # 187.2011
LETTER TO COMMISSION
TO: Mayor Matti Herrera Bower and
Members of the City Commission -< c t
`' r -
rri N tl
FROM: Jorge M. Gonzalez, City Manager
DATE July 22, 2011 ( ,
SUBJECT: External Auditor's (McGladrey & Pullen) Annual Audit Report on the City of Miami
Beach (the City) for the period ended September 30, 2010
Attached for your information is the external auditor's report on the City for the fiscal year ended
September 30, 2010. This package includes the following:
A. The Report to the Mayor and Members of the City Commission, discussing the Auditor's
required communications to the Mayor and City Commission, summary of recorded audit
adjustments, accounting estimates and, recently issued governmental accounting standards.
The Report also includes the following:
• Exhibit A - Certain written communications between management and the Auditors —
Representation letter;
• Exhibit B - McGladrey & Pullen's Independent auditor's report on compliance with
requirements applicable to each major federal program and state project and on internal
controls over compliance in accordance with OMB Circular A -133 and Chapter 10.550,
Rules of the Auditor General of the State of Florida and Schedule of Expenditures on
Federal Awards and State Financial Assistance; and
• Exhibit B - McGladrey & Pullen's management letter, in accordance with the Rules of the
Auditor General of the State of Florida, to the Mayor and Members of the City
Commission.
B. The City's Comprehensive Annual Financial Report (CAFR) for the fiscal year ended
September 30, 2010.
If you have any questions or need additional information please contact Patricia Walker at 305 -673-
7574
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COMPREHENSIVE
ANNUAL
FINANCIAL
REPORT
FOR THE FISCAL YEAR ENDED
SEPTEMBER 30, 20 10
Jorge M. Gonzalez Patricia D. Walker
City Manager Chief Financial Officer
Report prepared by: Finance Department
C over picture
Municipal Multipurpose Parking Facility
1721 - 55 Meridian Avenue
http://web.miamibeachfl.gov/
City of Miami Beach, Florida
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 20 10
TABLE OF CONTENTS
Introductory Section Page
Letter of Transmittal ....................................................................................................................... 1
GFOA Certificate of Achievement ................................................................................................... 6
Organizational Chart ....................................................................................................................... 7
List of Elected Officials and A dministration .................................................................................... 8
Financial Section
Independent Auditor ’ s Report
..................................................................................................... 9
Manageme nt’s Discussion and Analysis
................................................................................. 11
Basic Financial Statements:
Government - wide Financial Statements:
Statement of Net Assets .......................................................................................................... 28
Statem en t of Activities ............................................................................................................. 29
Fund Financial Statements:
Governmental
Bala nce Sheet – Governmental Funds ................................................................................... 30
Reconciliation of the Governmental F unds Balance Sheet
to the Statement of Net Assets ............................................................................................ 31
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Governmental Funds ................................................................................ 32
Reconciliation of the Statement of Revenues, Expenditures , and Changes in
Fund Balances of Governmental Funds to the Statement of Activities ............................... 33
Proprietary
Statement of Net Assets – Proprietary Funds ........................................................................ 34
Statement of Revenues, Expenses, and Changes in
Fund Net Assets – Proprietary Funds .................................................................................. 35
Statement of Cash Flows - Proprietary Funds ........................................................................ 36
Fiduciary
Statement of Fiduciary Net Assets - Fiduciary Funds ............................................................ 38
Statement of Changes in Fiduciary Net Assets - Fiduciary Funds ......................................... 39
Notes to Financial Statements
............................................................................................... 40
Required Supplementary Information (RSI)
Schedule of Funding Progress – Retirement Systems
.......................................................... 91
Table of Contents
(Continued)
Page
Schedules of Revenues, Expenditures, and Changes in
Fund Balances – Budget and Actual:
General Fund ....................................................................................................................... 92
Special Revenue Funds ...................................................................................................... 93
Notes to Required Supplementary Information ................................................................... 94
Supplementary Information
Combining and Individual Nonmajor Fund Statements and Schedules:
Nature and Purpose of Nonmajor Governmental Funds .......................................................... 95
Governmental Funds :
Combined Balan ce Sheet – Nonmajor Governmental Funds .................................................. 96
Combined Statement of Revenues, Expenditures, and Changes in
Fund Balances – Nonmajor Governmental Funds ................................................................ 97
Special Revenue Funds :
Combining Balance Sheet – Nonmajor Special Revenue Funds ............................................. 98
Combini ng Statement of Revenues, Expenditures, and Changes in
Fund Balances – Nonmajor Special Revenue Funds ........................................................... 99
Debt Service Funds :
Co mbining Balance Sheet – Nonmajor Debt Service Funds ................................................. 100
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances – Nonmajor Debt Service Funds ............................................................... .101
Schedule of Revenues, Expenditures, and Changes in
Fund Balances – Budget and Actual, Nonmajor Debt Service Funds ................................ 102
Enterprise Funds :
Combining Statement of Net Assets – Nonmajor Enterprise Fu nds ...................................... 103
Combining Statement of Revenues, Expen s es, and Changes in
Fund Net Assets – Nonmajor Enterprise Funds ................................................................ . 104
Combining Statement of Cash Flows – Nonmajor Enterprise Funds ..................................... 105
Internal Service Funds :
Combining Statement of Net A ssets – Internal Service Funds .............................................. 107
Combining Statement of Revenues, Expenses, and Changes in
Fund Net Assets – Inter nal Service Funds ......................................................................... 108
Combining Statement of Cash Flows – Internal Service Funds ............................................. 109
Pension and OPEB Trust Funds:
Combining Statement of Plan Ne t Assets .............................................................................. 111
Combining Statement of Changes in Plan
Net Assets ........................................................................................................................... 112
Agency Funds :
Statement of Changes in Assets and Liabilities – Agency Fund ............................................ 113
Table of Contents
(Continued)
Page
Component Units:
Combining Statement of Net Assets – Discret ely Presented Component Units .................... 114
Combining Statement of Activities – Discret ely Presented Component Units ....................... 115
Statistical Section (Unaudited)
Nature and Purpose of Statistical Section ................................................................................. 116
Financial Trends:
Net Assets by Component ....................................................................................................... 117
Changes in Net As sets ............................................................................................................ 118
Fund Balances, Governmental Funds ..................................................................................... 119
Changes in Fund Balances, Governmental Funds ................................................................ . 120
Revenue Capacity :
Assessed Value and Actual Value of Taxable Property .......................................................... 121
Direct and Overlapping Property Tax Rates ............................................................................ 122
Principal Property Tax P ayers ................................................................................................ . 123
Property Tax Levies and Collections ....................................................................................... 124
Debt Capacity:
Ratios of Outstanding Debt by Type ........................................................................................ 125
Ratios of General Bonded Debt Outstanding .......................................................................... 126
Legal Debt Margin Information ................................................................................................ 127
Revenue Bond Coverage ........................................................................................................ 128
Computation of Direct and Overlapping Bonded Debt ............................................................ 129
Demographic and Economic Information:
Demographic and Economic Statistics .................................................................................... 130
Principal Employers – Miami - Dade County ............................................................................. 131
Operating Information:
Full - time Equivalent City Government Employees by
Function/Progra m ............................................................................................................... 132
Operating Indicators by Function/Program .............................................................................. 133
Capital Asset Statistics by Function/Program .......................................................................... 134
INTRODUCTORY SECTION
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March 30, 201 1
Honorable Mayor and Members of the City Commission:
State law requires that all general -p urpose local governments publish a complete set of financial statements
presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with
generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that
requirement, we hereby issue the comprehensive annual financial report of the City of Miami Beach, Florida
(the "City"), for the fiscal year ended September 30, 20 10 .
Responsibility for both the accuracy of the data and the completeness and fairness of the presentation,
including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data is
accurate in all material respects and is reported in a manner designed to present fairly the financial position
and results of operations of the governmental activities, business - type activities, fiduciary activities, and
discretely presented components units of the City . All disclosures necessary to enable the reader to gain an
understanding of the financial activities of the City have been included.
Management of the City is responsible for establishing and maintaining an internal control structure designed
to ensure that the assets of the City are protected from loss, theft, or misuse, and to ensure that adequate
accounting data is compiled to allow for the preparation of financial statements in conformity with generally
accepted accounting principles . The internal control structure is designed to provide reasonable, but not
absolute, assurance that these objectives are met . The concept of reasonable assurance recognizes that: (1)
the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and
benefits requires estimates and judgments by management.
State statutes require an annual audit by independent certified public accountants . The selection of the
accounting firm McGladrey & Pullen, LLP as the City’s independent certified public accountants, was made
following recommen dation by an appointed evaluation committee to the City Manager , who reviewed the
selection and made recommendation to the City C ommission . The selection of McGladrey and Pullen, LLP
was then approved by the City Commission . The independent audit involved examining, on a test basis,
evid ence supporting the amounts and disclosures in the financial statements; assessing the accounting
principles used and significant estimates made by management; and evaluating the overall financial statement
presentation . The independent auditor concluded, based upon the audit, that there was a reasonable basis for
rendering an unqualified opinion that the City’s basic financial statements for the fiscal year ended September
30, 2010 , are fairly presented in conformity with GAAP . The independent auditors’ report is presented as the
first component of the financial section of this report.
In addition to meeting the requirements set forth in state statutes, the audit was also designed to meet the
requirements of the federal Single Audit Act of 1996 as amended and the State of Florida Single Audit Act in
accordance with OMB Circular A - 133 and Florida Rules of the Auditor General, Section 10.550 respectively .
The standards governing Single Audit engagements require the independent auditor to report not only on th e
fair presentation of the financial statements, but also on the audited government’s controls and compliance
with legal requirements, with special emphasis on internal controls and legal requirements involving the
administration of federal awards . These reports are available in the City’s separately issued Single Audit
Report.
As a recipient of federal, state, and county financial assistance, the City also is responsible for ensuring that
an adequate internal control structure is in place to ensure compli ance with applicable laws and regulations
related to those programs . This internal control structure is subject to periodic evaluation by management and
the Internal Audit Department of the City.
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GAAP requires that management provide a narrative intro duction, overview, and analysis to accompany the
basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of
transmittal is designed to compliment MD&A and should be read in conjunction with it. The City’s MD&A can
be found immediately following the report of the independent auditors.
Profile of the Government
The City was incorporated as a municipal corporation on March 26, 1915 and was created by the Florida
Legislature, Chapter 7672, Laws of Florida (1917) . The City is governed by an elected mayor and six - member
commission . The City operates under a Commission - Manager form of government . The term for the Mayor is
two years, with a term limit of six consecutive years . The term for the Commission is four years, with a term
limit of eight consecutive years . The Commission is responsible, among other things, for passing ordinances,
adopting the budget, approval of property tax levies, outstanding debt secured by the full faith credit of the City
or any of its revenue streams, appointing committees, and hiring both the City’s manager and attorney. The
City’s manager is responsible for carrying out the policies and ordinances of the Commission, for overseeing
the day - to - day operations of the City, and for appointing the heads of the various departments.
The accompanying financial statements present the City and its component units, entities for which the City is
considered financially responsible . Blended component units, although legally separate entities, are, in
subs tance, part of the City’s operations . Discretely presented component units are reported in a separate
column in the government - wide financial statements to emphasize that they are legally separate from the City.
The City provides a full range of services. These services include police and fire protection; recreational
activities; cultural events; sanitation services; water, sewer and storm water services; neighborhood
community services; and the construction and maintenance of streets and infrastructure . T his report includes
activities of the Miami Beach Visitor and Convention Authority, Miami Beach Employee’s Retirement Plan , the
City Pension Fund for Firefighters and Police Officers, Firemen’s and Policemen’s Relief and Pension Fund s ,
the Miami Beach Health Facilities Authority, and the Miami Beach Redevelopment Agency (the "Agency").
The annual budget serves as the foundation for the City’s financial planning and control . At least 65 days prior
to the beginning of the fiscal year, the City Commission is presented with a proposed budget . The proposed
budget includes anticipated expenditures and the means of funding them . After Commission review and public
hearings, the budget is adopted prior to October 1 . The budget is approved by fund and department .
Man agement may transfer amounts between line items within a department as long as the transfer does not
result in an increase in the department budget . Increases to funds or department budgets and transfers
between departments require Commission approval . Ann ual budgets are adopted on a basis consistent with
GAAP for all governmental funds except the capital projects fund, which adopts project - length budgets.
Budget - to - actual comparisons are provided in the required supplementary information section of this report for
the general fund, the resort tax special revenue fund, and the Miami Beach Redevelopment Agency Special
Revenue Fund . Funds and grants that have multi - year project budgets are not presented in the statements.
Local Economy: The City is located on a barrier island surrounded by the Atlantic Ocean to the east and
Biscayne Bay to the west. Tourism is the largest sector of the City’s economy with over $1. 8 billion in direct
tourist spending on hotel, food, and beverage, and also a large portion of the City’s $9 75 million retail
marketplace. This past year, the City’s hotels hosted approximately 5 million overnight visitors, and
approximately 7 million tourists visited South Beach and the Art Deco Historic district. Additionally, the City is
a regiona l destination with approximately 7 to 9 million day - trips by residents of the surrounding area, making
the City one of the most popular attractions in Florida.
Taxable hotel room sales in Miami Beach increased by 17% from 2009 to 2010. When compared to a n
increase of only 11% for hotel room s throughout the rest of Miami - Dade County (excluding Miami Beach), the
17% increase demonstrates the continued strength of the Miami Beach lodging market, and its role as the key
driver of tourism in South Florida. During 20 10 , hotel room occupancy was 6 8.2 %, up from 66.5% in 2009,
reflecting continued absorption of an inventory of hotel rooms that has increased significantly from 13,506 at
the beginning of 2008 to 16,559 at the end of 2010. This additional inventory has provide d the City with
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additional hotel room resources and product that will continue to attract visitors and additional investment over
the long term. It is important to note that, with the exception of a de minimus 1% decline in the first quarter o f
2008, Room Night Demand has shown year over year increases in every quarter from the third quarter of 2007
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through the end of 2010, including an increase of 9% in the 4 quarter .
Moreover, the overall economy of the City remained stable, with an es tima ted gross City product of $6.3
billion . From the second quarter of 2008 to the second quarter of 20 10, there was an 11% increase of
employment from 43,138 jobs to 48,096 jobs. The City’s unemployment rate ended 2010 at 10.9% below
comparable geographies, such as 13 % for the Metropolitan Statistical Area, and 12 % for the State of Florida.
In recent years, the City has diversified beyond its traditional tourism based economy to become a
multifaceted industrial center and regional leader in information technology, health care, arts, and culture. In
2010 , the world’s most prestigious art fair, based in Basel, Switzerland, held its eighth Miami Beach exhibition,
with attendance and sales exceeding expectations . Additionally, the partnership between the City and the New
World Symphony (the “Symphony”) have resulted in the New World Center a new, state of the art
performance and recording facility which open ed in February 2011 on City - owned land , with the adjacent City
owned park, SoundScape which features a 7,000 square foot projection wall on the eastern front of the New
World building. Complete with a world - class audio system, ExoStage after dark provides a canvas for video
art, music, film and simulcasts of concerts playing inside the New World Center . This fac ility is a technological
wonder designed by celebrity architect Frank Gehry and the first of its kind in the world. The City Commission
has approved the City’s Sustainability Plan and the City was selected to be the pilot community for the State of
Florida ’s Energy Economic Development Zone Pilot Program.
Retail tenants continue to open locations and expand in the City, joining established operations such as
Armani Exchange, Kenneth Cole, Office Depot, Diesel, and Nicole Miller. New retailers entering the Miami
Beach market include H&M and Forever 21. Fifth and Alton a partnership between the City and Berkowitz
Development Group is a vertical retail center with 180,000 square feet of retail space and 1,100 parking
spaces which just completed its first yea r of operation, and is almost fully leased , with tenants such as Publix,
Best Buy, Petco, TJ Maxx, Ross, Vitamin Shoppe, and Staples. Class A office space in prime locations
continues to generate interest with a vacancy rate of approximately 10 %. The office market is anchored by
corporate tenants such as LNR Property Corporation , Terranova , Spaient, and Benetton .
Although there are industrial factors well beyond the City’s control, the entertainment industry continues as an
important part of the City’s e conomy. The City remains a key location for the production of movies, fashion
campaigns, and TV series such as ‘Burn Notice’; and many international talent and model agencies have
retained operations in the City. The City continues to grow as an internatio nal destination for major events. In
addition to Art Basel Miami Beach, the South Beach Food and Wine Festival, the South Beach Comedy
Festival, the Miami Beach International Boat Show, and the Winter Music Conference continue to provide a
strong base that supplements the meeting and trade show segment.
The City also remains a leader in the real estate industry, as the median price of homes and condominiums
continued to stabilized through 2010. Growth management initiatives in the late 1990’s resulted in more
limited supply, somewhat reducing the exposure of excess new residential inventory that was experienced in
some other locations . Furthermore, the end of 2008 saw the beginning of nine straight quarters of increase in
the number of units sold, and a decline in the number of condominium units for sale, from over 4,000 in early
2008, to 2,486 in December 20 10 . The average number of days that units were on the market also declined,
from 172 in January 2008, to 1 21 in December 2010, and the number of mont hs supply declined from 38
months to 16 months during the same period .
Energy Conservation: The City Commission awarded a $13.7 million energy conservation contract to
Ameresco, an Energy Services Company. The contract will implement six (6) Energy Conse rvation Measures
(ECM) that once completed will result in “guaranteed” energy savings of $1.1 million for the initial year, the
annual savings are escalated at 3.75% per year. The project payback time of just slightly over thirteen (13)
years. These ECM’s include Facility Lighting and Lighting Controls Upgrades city wide , Domestic Water
Conservation city wide , HVAC Controls in various city facilities , Geothermal District Cooling plant , Geothermal
Cooling Police Station , Power Transformer Replacement . All E CMs are scheduled to be completed in the
next 24 months. Reducing energy consumption cuts operating costs, increases efficiencies, decreases
dependence on natural resources and reduces green house gas emissions.
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Solid Waste Management: The City’s Recyclin g Program has expanded to include recycling in selected
public areas, which includes parks, beach entrances, high pedestrian traffic areas, and many City facilities.
The Program also now single - stream (co - mingled) recycling for single - family residences through collaboration
with Miami - Dade County. A new Citywide recycling ordinance is also under development that will increase the
City’s commercial and multi - family recycling rates. In addition, the City has amended it’s Solid Waste
Ordinance requiring franchise contractors in the City of Miami Beach to o ffer recycling for any and all accounts
serviced by the contractor (including, without limitation, any and all commercial and residential accounts) , o ffer
a recycling proposal to every account that to the maximum extent that’s commercially feasible; maximize
recycling activity in the City , e ach recycling proposal shall disclose the anticipated savings offset as a result of
the recycling and the consequent reduction of solid waste disposal and e ffective May 1, 2010, all contracts
between a franchise waste contractor and the account holder shall be modified to include a provision to offer/
provide recycling.
Alternative Transportatio n: A contract for the implementation of a self - service bicycle program in the Cit y of
Miami Beach as recently been approved by the City Commission. The program is expected to be one of the
largest programs operated by a municipality in the U.S. and will significantly increase accessibility to
alternative transportation options within the City, decrease traffic by lessening the number of automobiles trips
and reduce green house gas production.
Green Building: A voluntary green building ordinance has been adopted that provides incentives to
participants who are doing new construction or renovating buildings using the U.S. Green Building Council’s
LEED standards in Miami Beach. The green building practices preserve natural resources, reduce green
house gas production, and increase indoor air quality and occupant health.
Water Quality/Co nservation: As part of the new Stormwater Management Master Plan, the study will
consider future climate projections into the planning, engineering design, construction, and operations of the
stormwater system.
Cultural, Entertainment and Tourism Capital and an International Center for Innovation and Business :
After lengthy negotiations, in FY 2008/09, the Board of County Commissioners approved the use of Building
Better Communities General Obligation Bond funds for a Convention Center Master Plan Study to be
developed by Arquitectonica. The City’s Capital Improvement Plan includes $55 million in funding from
County’s General Obligation Bond to expand and enhance the Miami Beach Convention Center, and the
Master Plan will allow the City to develop a comprehensive assessment of funding needs related to this
project. The Convention Center Master Plan process began this year in partnership with Arquitectonica, and
with the benefit of input from a Steering Committee comprised of interested and knowledgeable sta keholders.
Preliminary plans have been presented that expand the existing facility footprint to include two new exhibit
halls, more than 80,000 square feet of new meeting rooms, a ballroom/multi - purpose space, a new parking
garage, and other venue upgrade s and amenities designed to make the facility competitive in the long term.
The proposed campus expansion plan currently also includes the development of a convention center hotel.
Preliminary cost estimates (hard and soft costs) for the current project scope are being reviewed and refined,
and phasing plans are being finalized for review. Identification of funding sources is currently underway.
Const r uction Projects: Funding for landscaping and beautification continues to be a priority. During the fiscal
year the City completed the construction of the Mid - Beach Community Garden within Pinetree Park and the
dog park at Washington Avenue renovation of fitness facility at Brittany Bay Park. We also have begun
construction of Outdoor Fitness Center at 6th Street and Ocean Drive within Lummus Park and have begun
design for the construction of the North Beach Dog Park. In addition over 400 trees were planted Citywide
bringing the reforestation program total to 4,250 trees installed to date.
Debt Administration : The City continues to maintain its AA - rating with Standard and Poor’s . In August 2010 ,
our rating with Moody’s Investors Service was raised from A a3 to Aa 2 . Under current state statutes, general
obligation bonded debt issued by the City is subject to a legal limitation based on 15% of total assessed value
of real and personal property . As of September 30, 20 10 , the general obligation bonded debt of the City
totaling $7 1 million was well below the legal limit of $3. 4 billion. The City’s total debt per capita equaled $4,6 77
at September 30, 20 10 .
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Cash management policies and practices : In accordance with the City’s investment policy, excess cash
during the year was invested in U.S. Treasury obligations, U.S. government agencies, commercial paper,
corporate bonds, money market funds, and repurchase agreements . The investment portfolio of the pension
trust fund includes cash deposits, U.S. government securities, corporate bonds, common stock, money
market funds, and commercial paper .
The average yield on investments, except for the fiduciary trust funds, was 1.49 % for the fiscal year ended
September 30, 20 10 . The pension trust funds and Postemployment Benefits Other than Pension (OPEB) trust
funds had a yield rate of 10.7 % and 2 % respectively for the same peri od.
Risk Management : The City has a risk management program for workers' compensation, general liability,
and auto liability . As part of this comprehensive plan, resources are being accumulated in the self - insurance
internal service fund to meet potential losses . In addition, various risk control techniques, including employee
accident prevention training, have been implemented to minimize accident - related losses . The City currently
has $1 5.5 million available for losses.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate
of Achievement for Excellence in Financial Reporting to the City for its comprehensive annual financial report
(CAFR) for the fiscal year ended September 30, 200 9 . This was the twent y- third (23 ) consecutive year that the
City has received this prestigious award . In order to be awarded a Certificate of Achievement, the City
published an easily readable and efficiently organized comprehensive annual financial report . This report
satisfied both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only . We believe that our current comprehensive
annual financial report continues to conform to the Certificate of Achievement Program's requirements, and
we are submitting it to the GFOA to determine its eligibility for another certificate.
In addition, the City received the GFOA’s Distinguished Budget Presentation Award for its annual budget for
the fiscal year beginning October 1, 200 9 . In order to qualify for the Distinguished Budget Presentation Award,
the City’s budget document had to be judged proficient as a policy document, a financial plan, an operations
guide , and a communications device.
The preparation of the comprehensive annual financial report was made possible by the dedicated work and
tireless efforts of the entire staff of the Finance Department . Each member of the department has our sincere
appreciation for the contributions made in the preparation of this report.
In closing, without the leadership and support of the Mayor and City Commission, preparation of this report
would not have been possible.
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6
CITY OF MIAMI BEACH, FLORIDA
List of Elected Officials and Administration
September 30, 20 10
City Commission
Matti Herrera Bower, Mayor
Jorge Exposito, Vice- Mayor
Michael Gongora , Commissioner
Jerry Libbin, Commissioner
Edward L. Tobin , Commissioner
D eede Weithorn , Commissione r
Jonah Wolfson , Commissioner
Administration
Jorge M. Gonzalez, City Manager
Patricia D. Walker, Chief Financial Officer
Hilda M. Fernandez , Assistant City Manager
Jorge Gomez , As sistant City Manager
8
FINANCIAL SECTION
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To the Honorable Mayor and Members of the City Commission
City of Miami Beach, Florida
We have audited the accompanying financial statements of t he governmental activities, the business-type activities,
the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information
of the City of Miami Beach, Florida (the “City”), as of and for the year ended September 30, 2010, which collectively
comprise the City’s basic financial statements as listed in the table of contents. These financial statements are the
responsibility of the City’s management. Our responsibility is to express opinions on these financial statements
based on our audit. We did not audit the financial statements of:
Funds / Component Unit Classification
City of Miami Beach Florida Employees’ Retirement Plan Aggregate Remaining Fund Information
Aggregate Remaining Fund Information
City of Miami Beach Florida Pension Fund for Firefighters and
Police Officers
City of Miami Beach Florida Firemen’s Relief and Pension FundAggregate Remaining Fund Information
Miami Beach Policemen’s Relief and Pension FundAggregate Remaining Fund Information
Miami Beach Visitor and Convention AuthorityDiscretely Presented Component Unit
Miami Beach Convention Center as managed by Global SpectrumEnterprise Funds
These funds and component unit represent the percentage of assets and revenue, when applicable, of the respective
opinion units as listed below:
Percentage of
Reporting Classification Total Assets Total Revenue
Aggregate Remaining Fund Information 86% 56%
Discretely Presented Component Unit 87% 94%
Enterprise Funds 0.5% 12%
Those financial statements were audited by other auditors whose reports thereon have been furnished to us, and our
opinion, insofar as it relates to the amounts included for the funds and component unit indicated above is based
solely on the reports of the other auditors.
ï Ù õ Ð Û Ø Ê × Ã Ó É È Ô × Ú Ê Û Î Ø Ç Î Ø × Ê Å Ô Ó Ù Ô ê é ï ï Ù õ Ð Û Ø Ê × Ã ó Î Ù Û Î Ø ï Ù õ Ð Û Ø Ê × Ã ì Ç Ð Ð × Î ð ð ì É × Ê Æ × Ù Ð
Ó × Î È É ¬ Ú Ç É Ó Î × É É Î × × Ø É ï × Ï Ú × Ê Í Ö ê é ï ó Î È × Ê Î Û È Ó Í Î Û Ð Î × È Å Í Ê Ñ Û Î × È Å Í Ê Ñ Í Ö
è Ô × È Å Í Ö Ó Ê Ï É Í Ì × Ê Û È Ó Î Õ Û É É × Ì Û Ê Û È × Ð × Õ Û Ð × Î È Ó È Ó × É Ó Î Û Î Û Ð È × Ê Î Û È Ó Æ × Ì Ê Û Ù È Ó Ù × É È Ê Ç Ù È Ç Ê × ó Î
Ø × Ì × Î Ø × Î È Û Ù Ù Í Ç Î È Ó Î Õ È Û Ä Û Î Ø Ù Í Î É Ç Ð È Ó Î Õ Ö Ó Ê Ï É
9
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 , issued by the
õÍÆ×ÊÎÏ×ÎÈ ûÇØÓÈÓÎÕ éÈÛÎØÛÊØÉ
Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statem ents are free of material misstatement. The financial
statements of the Miami Beach Convention Center as manag ed by Global Spectrum, the City of Miami Beach Florida
Employees’ Retirement Plan, the City of Miami Beach Flor ida Pension Fund for Firefighters and Police Officers, and
the Miami Beach Policeman’s Relief and Pension Fund were not audited in accordance with
õÍÆ×ÊÎÏ×ÎÈ ûÇØÓÈÓÎÕ
.
éÈÛÎØÛÊØÉ
An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
City’s internal control over financial reporting. Accordingly we express no such opinion. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit and the reports of other auditors provide a
reasonable basis for our 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 business-
type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of the City of Miami Beach, Florida, as of September 30, 2010, and the respective changes in
financial position, and, where applicable, cash flows thereof for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
In accordance with , we have also issued under separate cover our report dated
õÍÆ×ÊÎÏ×ÎÈ ûÇØÓÈÓÎÕ éÈÛÎØÛÊØÉ
March 30, 2011 on our consideration of the City’s internal control over financial reporting and our tests of its
compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that te sting, and not to provide an opinion on the internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with
õÍÆ×ÊÎÏ×ÎÈ
and should be considered in assessing the results of our audit.
ûÇØÓÈÓÎÕ éÈÛÎØÛÊØÉ
The management’s discussion and analysis, the schedu les of funding progress – Retirement Systems and
Postemployment Benefits Other than Pension, and the budgetary comparison information for the general fund, resort
tax revenue fund, and Miami Beach Redevelopment Agency fund are not a required part of the basic financial
statements but are supplementary information required by a ccounting principles generally accepted in the United
States of America. We and the other auditors have applied certain limited procedures, which consisted principally of
inquiries of management regarding the methods of measurement and presentation of the required supplementary
information. However, we did not audit the information and express no opinion on it.
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 nonmajor fund financial
statements and schedules, and the statistical section are pr esented for purposes of additional analysis and are not a
required part of the basic financial statements. The comb ining and individual nonmajor fund financial statements and
schedules have been subjected to the auditing procedures applied by us and the other auditors in the audit of the
basic financial statements and, in our opinion, based on our au dit and the reports of other auditors, are fairly stated in
all material respects in relation to the basic financial statements taken as a whole. The introductory and statistical
sections have not been subjected to the auditing procedures applied by us and the other auditors in the audit of the
basic financial statements and, accordingly, we express no opinion on them.
Miami, Florida
March 30, 2011
10
MANAGEME NT’S DISCUSSION AND ANALYSIS
(Unaudited)
Our discussion and analysis of the City of Miami Beach’s (the “City”) financial performance provides an
overview of the City’s financial activities for the year ended September 30, 20 10 . We encourage readers
to consider the information presented herein in conjunction with additional information that we have
furnished in our letter of transmittal, which can be found on pages 1 - 5 of th is report.
Financial Highlights
The assets of the City exceeded its liabilities at September 30, 20 10 by $ 1 .1 billion (net ass ets) . Of
this amount, $ 722.8 million was invested in capital assets, net of related debt. Additionally, $ 1 40.5
million was restricted by laws, agreements, or debt covenants . The City has unrestricted net assets of
$ 24 0 .9 million.
During fiscal year 20 10 , t he City’s net assets increased by $ 67 .7 million . Of this increase, $ 27.1
million was in governmental activities and the remaining increase of $ 40 .6 million in business - type
activities. For the government al activities, r evenues from charges for services dec reased by $4 million
or 6.7 %, operating grants and contributions increased $ 12. 1 million or 63.9 %, capital grants and
contributions increased $ 3.5 million or 7.4 % and general revenues decreased by $ 13.7 million or
5.5 % , while expenses increased $ 20.7 milli on or 7.7 %. For the business - type activities, charge s for
services increased $ 8 million or 6.8 %, while expenses increased by $ 10.9 million or 10.1 % over the
prior year .
The City’s assets increased by $ 91.2 million or 5.8% . The City’s total liabilities had a net increase of
$23 .5 million or 4. 5 % during the year . Long term liabilities increased by $ 29 .4 million or 6 .2 %, while
short term liabilities decreased by $ 5.9 million or 11.5 %
At September 30, 20 10 the City’s governmental fund balance consisted mainly of $ 230.7 million in
restricted, $ 75.2 million in committed, $ 15.2 million in assigned and $ 2.5 million in un assigned fund
balance. Enterprise fund ’ s net assets consisted of $ 346.8 million in invested in capital assets, net of
related debt , $ 41 million in restricted and $1 15 million in unrestricted net assets. Internal Service
fund’s net assets consisted of $ 9 million in invested in capital assets net of related debt and $ 3.2
million in unrestricted net assets.
Overview of the Financial Statements
This d iscussion and analysis is intended to serve as an introduction to the City’s basic financial
statements, which have the following 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
C ity’s finances in a manner similar to that of a private - sector business.
The statement of net assets presents information on all of the City’s assets and liabilities, with the
difference between the two reported as net assets. Over time increases or decreases in net assets 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 assets changed during each
fiscal year. C hanges in net assets 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 in the
statement for some items that will only result in cash flows in future fiscal periods (for example,
uncollected taxes and earned, but unused vacation leave).
Both the statement of net assets and the statement of activities of the government - wide financial
stateme nts distinguish functions of the City that are principally supported by taxes and intergovernmental
revenues from other functions that are intended to recover all or a significant portion of their cost through
11
MANAGEME NT’S DISCUSSION AND ANALYSIS
(Unaudited)
user fees and charges . The governmental activities of the City include general government, public safety,
physi cal environment, transportation, economic development, human services, and culture and
recreation . The business - type activities of the City includes storm water, water and sewer, parking,
convention center complex, sanitation, and Miami Beach Redevelopment Agency’s parking and leasing
operations.
The government - wide financial statements include not only the City itself, but also a legally separate
Visitor and Convention Authority and a legally separate Health Facilities Authority. Financial information
for these component units are reported separately from the financial information presented for the primary
government itself.
The government - wide financial statements can be found on pages 28- 29 o f this report.
Fund Financial Statements
A fund is a grouping of related accounts that are used to maintain control over resources that have been
segregated for specific activities or objectives. The City uses fund accounting to ensure and demonstrate
compliance with finance - related legal requirements. T he funds of the City can be divided into three
categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds . Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government - wid e 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 a fiscal year. Such information may be useful in
evaluating a government’s near - term financing requirements.
Because the focus of governmental funds is narrower than that of the government - wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government - wide financial statements. By doing
so, readers may better understand the long - term impact of the government’s near - term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate the comparison between
governmental funds and governmental activities.
The City maintains s eventeen individual governmental funds . Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balances for the general fund, resort tax special revenue fund, Miami Beach
Redevelopment Agency special revenue fund, and capital projects fund which are considered to be major
funds . Data from the other thirteen governmental funds are combined into a single, aggregated
presentation . Individual fund data for each of these non - major governmental funds are provided in the
form of combining statements elsewhere in this report.
The City adopts an annual appropriated budget for its general fund, its resort tax special revenue fund,
and its Miami Beach Redevelopment Agency’s special revenue fund. A budgetary comparison statement
has been provided for all of the above funds to demonstrate compliance with the fund’s budget. The City
also adopts a multi - year capital budget which is not included in this report, but can be found at the City’s
website.
The governmental funds financial statements can be found on pages 30 - 33 of this report.
Proprietary Funds . The City maintains seven different types of enterprise funds . Enterprise funds are
used to report the same functions presented as business - type activities in the governm ent - wide financial
statements . The City uses enterprise funds to account for its storm water utilities, water and sewer
utilities , parking, convention center complex, sanitation, and Miami Beach Redevelopment Agency’s
parking and leasing . The City maintains 6 internal service funds. Internal service funds are an accounting
device used to accumulate and allocate cost s internally among the City’s various functions . The City uses
internal service funds to account for its fleet management, property management, central services, risk
12
MANAGEME NT’S DISCUSSION AND ANALYSIS
(Unaudited)
management self insurance, health self insurance and communications operations . Since these services
predominantly benefit governmental rather than business - type functions, they have been included within
the governmental activities in the government - wide financial statements.
Proprietary funds provide the same type of information as the government - wide financial statements, only
in more detail . The proprietary fund financial statements separate information for the storm water utiliti es,
water and sewer, parking, and convention center complex, which are considered to be major funds of the
City . Data from the other three proprietary funds are combined into a single, aggregated presentation .
Individual fund data for each of these non - major proprietary funds is provided in the form of combining
statements elsewhere in this report.
Conversely, all internal service funds are combined into a single, aggregated presentation in the
proprietary fund financial statements . Individual fund data for the internal service funds is provided in the
form of combining statements elsewhere in this report .
The basic proprietary fund financial statements can be found on pages 34- 37 of this report.
Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside
the government. Fiduciary funds are not reflected in the government - wide financial statements because
the resources of those funds are not available to support City programs. The fiduciary funds include the
four Pension Trust Funds, one OPEB Trust Fund and one general agency fund.
The fiduciary fund financial statements can be found on pages 38- 39 of this report .
Notes to the Financial Statements
The notes to the financial statements provide additional information that is essential for a full
understanding of the information provided in the government - wide and fund financial statements . The
notes to the financial statements can be found on pages 40 - 90 of this report.
Other information
In addition to the basic financial statements and accompanying notes, this report also represents certain
required supplementary information concerning the City’s progress in funding its obligations to provide
pension benefits to its employees . Required supplemental information can be found on pages 91 - 94 of
this report.
The combining statements referred to earlier in connection with non - major governmental funds, non -
major enterprise funds and internal service funds are presented immediately following the required
supplemental informat ion . Combining and individual fund statements and schedules can be found on
pages 96- 115 of this report.
13
MANAGEME NT’S DISCUSSION AND ANALYSIS
(Unaudited)
Government - wide Financial Analysis
The table below summarizes the statement of net assets:
CITY OF MIAMI BEACH
Net Assets
(in thousands)
As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position.
In the case of the City, assets exceeded liabilities by $1.1 billion at September 30, 20 10 , an increase of
$67 .7 million or 6.5 % from the prior year.
The largest portion of the City’s net assets, $ 722.8 million or 6 5.4 %, reflects its investment in capital
assets (e.g., land, building, infrastructure, machinery, and equipment), less any related debt used to
acquire those assets t hat 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 its 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 cannot be used to
liquidate these liabilities.
An additional portion of the City’s net assets, $ 1 40.5 million or 1 2.7 % represents resources that are
subject to external restrictions on how they may be used . This includes but is not limited to grant
proceeds, Redevelopment Agency tax increments, Resort Tax proceeds, impact fees, Interlocal
agreements, and debt service requirements. T he remaining balance of unrestricted net assets, which is
$ 24 0.9 million or 2 1. 8% consist s of $ 1 26.7 million from governmental activities and $1 14 .2 million from
business type activities. For financial reporting purposes, these balances are considered unr estricted,
however, the major ity of these balances are committed or assigned by the City Commission.
At the end of the current fiscal year, the City is able to report positive balances in all three categories of
net assets, both for the City as a whole as well as for its separate governmental and business - type
.
activities . The same situation held true for the prior fiscal year The City’s net assets increased by $ 67 .7
million or 6. 5 % d uring the current fiscal year. Governmental activities accounted for an increase of $ 27.1
14
MANAGEME NT’S DISCUSSION AND ANALYSIS
(Unaudited)
million or 40 % while Business - type accounted for $ 40 .6 million or 60 % of the increase.
CITY OF MIAMI BEACH
Changes in Net Assets
Governmental Activities
for the fiscal year ended September 30,
(in thousands)
2009 2010
Revenues:
Program revenues:
Charges for services $ 59,810 $ 55,801
Operating grants and contributions 18,890 30,960
Capital grants and contributions 4,766 8,314
General revenues:
Taxes:
Property taxes, levied for general
purposes 127,421 114,045
Property taxes, levied for debt services 6,085 5,945
Resort taxes 37,412 42,395
Tax increment 47,655 44,013
Utility taxes 9,226 9,975
Communication service 7,196 6,329
Local business 3,684 4,299
Miscellaneous 895 6,653
Unrestricted investment earnings 10,900 3,103
Total revenues 333,940 331,832
Expenses:
General government 44,331 44,772
Public safety 155,154 164,903
Physical environment 2,237 2,655
Transportation 8,927 10,230
Economic environment 3,934 12,570
Human services 1,606 1,715
Culture and recreation 41,570 42,088
Interest on long-term debt 11,768 11,295
Total expenses 269,527 290,228
Increase in net assets before transfers
and gain on sale of capital assets 64,413 41,604
Transfers (3,420) (14,626)
Gain on sale of capital assets 29 90
Increase in net assets 61,022 27,068
Net assets - beginning 513,990 575,012
Net assets - ending $ 575,012 $ 602,080
15
MANAGEME NT’S DISCUSSION AND ANALYSIS
(Unaudited)
Governmental activities . Governmental activities increased the City’s net assets by $ 2 7.1 million,
thereby accounting for 40 % of the total growth in the net assets of the City .
Key elements of the net increase are as follows:
Governmental activities revenues consist ed of program revenues which amount ed to $ 95.1 million and
general revenues which amounted to $2 36.8 million, fo r a total of $33 1.9 million. Property tax revenue for
general purposes which represents 3 4.4 % of total revenues was $1 14 million. This is a decrease of
$ 13.4 million or 10.5 % from the prior year . Property taxes are levied by the City based on the Miami -D ade
County property appraisers determined property values in the City. The Miami - Dade County Property
Appraiser determined that taxable property values in the City decreased from $ 25.9 billion in 200 9 to
$23.1 billion in 20 10 , a decrease of $2.8 billion . H owever, the City’s operating millage rate remained the
same at 5.6 6 mills . Charges for service which represents 1 6.8 % of total revenues was $5 5.8 million. This
amounted is a decrease of $4 million or 6.7 % over the prior year collections . These charges are primarily
de rived from Parks and Recreation (including G o lf Courses) user fees, ambulance fees, off duty services,
franchise fees, rents and leases, license , p ermits, fines , forfeitures and administrative fees from
enterprise funds and some forms of intergovernmental revenues. Tax inc rement revenue which
represents 1 3 .3% of the revenues was $4 4 million. This amount is a decrease of $ 3.6 million or 7.6 %
from the prior year. Tax increments revenue is computed by applying the operating tax rate for the City
and Miami - Dade County, Florida, (the County) multiplied by the increased value of property in the district
over the base property value minus 5%. Both the City and the County are required to fund this amount
annually without regard to tax collections or other obligations. The decrease in revenues is based on the
decrease in real estate property values City wide. R esort tax which represents 12.8 % of revenues was
$ 42.4 million which is a n increase of $5 million or 13.3% from the prior year. Resort tax is a 3% tax on
the rent of a room or rooms in any hotel, motel, rooming house or apartment house and 2% on the total
sales price of all food and beverage (included beer and wine sold at retail in any restaurant ) . Fluctuations
in resort tax revenues are completed based on the fluctuation in the sales of the above items and varies
from one year to another based on the economy.
Governmental activities expense consisted of functional expenses for the City’s general government,
public safety, physical environment , transportation, economic environment, human services, culture and
recreation and interest on long - term debt. These functional expenses amounted to $2 90.2 million .
Significant portion s of these expenses were in the public safety, general government and culture and
recreation functions. P ublic safety function expense w as $1 64. 9 million and represents 56.8 % of total
expenses. The City’s public safety function includes the person nel and operations for police, fire, ocean
rescue, building operations, emergency 9 11 services and other. In addition, grant funded expenses for
police, fire and other public safety activities are reported under this category. Expenses in this function
increased by $ 9. 7 million or 6 .3 % over the prior year.
G eneral government function e xpense was $44. 8 million and represents 1 5.4 % of total expense. The
City’s general government function includes the City attorney’s office, public works department, planning
department, capital investment and upkeep office, budget and finance office, office of procurement , city
managers office, city clerk ’ s office, human resources office and other special project s. Expenditures in
this function remained approximately the same as in the prior year, where e xpenses were $4 4.3 million or
1 6.4 % of total expense s . C ulture and recreation function expense was $4 2 million or represents 1 4.5 % of
total expenses . The City’s culture and recreation function includes expenses for grant funded culture and
recreation activities, the City’s parks and recreation department , Office of Tourism and Cultur al
D evelopment, Bryon and Colony theater operations, golf course operations, and a variety of arts, cultural
and entertainment programs. Expenses in this function had a net increase of $.5 million or 1.2 % from the
prior year .
16
MANAGEME NT’S DISCUSSION AND ANALYSIS
(Unaudited)
Revenue by Source – Governmental Activities
for the year ended September 30, 20 10 (in thousands)
Resort taxes
13%
Property taxes
36%
Tax increment
13%
Capital grants and
Utility taxes
contributions
3%
3%
Communication service
2%
Local business tax
Charges for services
Misc.
Operating grants and
1%
17%
2%
contributions
9%
Investment earnings
1%
Gain on sale of capital assets
0%
Expenses and Program Revenues – Governmental Activities
for the year ende d September 30, 20 10 (in t housands)
Expenses
140,000
Program revenues
120,000
100,000
80,000
60,000
40,000
20,000
0
17
MANAGEME NT’S DISCUSSION AND ANALYSIS
(Unaudited)
The table below summarizes the changes in net assets - Business-type Activities
CITY OF MIAMI BEACH
Changes in Net Assets
Business-type Activities
for the fiscal year ended September 30,
(in thousands)
2009 2010
Revenues:
Program revenues:
Charges for services $ 118,630 $ 126,642
Operating grants and contributions 13,360 13,882
Capital grants and contributions
General revenues:
Tax increments 2,405 2,619
Unrestricted investment earnings 2,942 2,083
Total revenues 137,337 145,226
Expenses:
Storm water 3,756 4,116
Water 23,468 26,677
Sewer 25,425 28,896
Parking 25,142 26,904
Convention Center 14,744 13,520
Sanitation 13,773 16,784
Redevelopment Agency's Parking 1,908 2,229
Redevelopment Agency's Leasing 103 125
Total expenses 108,319 119,251
Increase in net assets before transfers
and gain (loss) on sale of capital assets 29,018 25,975
Gain (loss) on sale of capital assets (7)
Transfers 3,420 14,626
Increase in net assets 32,438 40,594
Net assets - beginning 429,034 461,472
Net assets - ending $ 461,472 $ 502,066
18
MANAGEME NT’S DISCUSSION AND ANALYSIS
(Unaudited)
Business - type activities. Business - type activities increased the City’s net assets by $ 40 .6 million,
thereby accounting for 60 % of the total growth in the net assets of the City .
Key elements of the net increas e are as follows:
The Stormwater fund had a change in net assets of $ 6.8 million . Operating revenues increased
by $ 1.5 million or 15.9 % and ope rating expenses increased by $ .1 million or 3.1 % from the prior
year . Net non - operating expenses w ere $158,397 and consisted of $382,280 in interest and fiscal
charges, $7,465 in losses on disposal of capital assets and $231,348 in interest income. At the
beginning of the fiscal year, the Stor m water rates were increased by $1.64 or 22% from $7.42 to
$9.06 per Equiva lent Residential Unit (ERU). Rates were increased to fund additional costs for
operations and maintenance of the Stormwater System and to provide for sufficient revenues for
the payment of principal and interest on proposed Stormwater Revenue Bonds.
Th e Water and Sewer fund had a change in net assets of $1 4.7 million . Operating revenues
in crease d by $ 5.6 million o r 8.8 % and operating expenses increase d by $ 6.3 million o r 13.7 %
from the prior year . Net non - operating expenses w ere $1.9 million and consisted of $2.7 million in
interest and fiscal charges, $23,168 in gain on disposal of capital assets and $723,688 in interest
income. Effective October 1, 2009, water rate increased $ .4 8 from $ 3.88 to $ 4.36 per 1,000
gallons. Sewer rates also increased by $.4 2 from $5.62 to $6.04 per 1,000 gallons. The combined
water and sewer rate increase d by $.90 . Of the $.90 increase, $.61 resulted from an increase in
the Miami - Dade County Water & Sewer Department, the City’s wholesale water provider , costs.
The other $.29 is the City’s increase for coverage of future water and sewer bonds.
The Parking System fund had a change in net assets of $ 21.8 million . Operating revenues
increased by $ 2. 3 million or 7.1 % and operating expenses increase d by $ 1.5 million or 6.2 % from
t he prior year . Net non - operating expenses w ere $ .5 million and consisted of $ 1.2 million in
interest and fiscal charges, $ 5,216 in gain on disposal of capital assets and $ 691,568 in interest
income. The Parking fund also received a capital contribution of the Municipal Multiple Purpose
P arking Garage located at Meridian Avenue , Miami Beach with a value of $10.5 million.
The Convention Center Fund had a change in net assets or loss of $ 1.8 million. Operating
revenues increased by $ 532,479 or 4.7 % and ope rating expenses de creased by $ 1.4 million or
9.4 % from the prior year . Net non - operating expenses were $309,994 and consisted of $496,858
in losses on disposal of capital assets and $186,864 in interest income. Historically the
Convention Center fund has h ad net operating losses of approximately $3 million annually , with
$3.8 million in 2004, $3.1 million in 2005 , $3.1 million in 2006 , $2.8 million in 2007 , $3.1 million in
2008 and $3.2 million in 2009.
Other Enterprise F unds , which includes the Sanitatio n, Miami Beach Redevelopment Agency’s
Parking and Miami Beach Redevelopment Agency’s L easing Funds, had a loss of $880,966 .
Operating revenues decreased by $ 731,859 or 4.2 % and operating expenses in creased by $ 3 .1
million or 20 % from the prior year . Net no n- operating revenues were $258,083 and consisted of
$15,342 i n interest and fiscal charges, $23,813 in gain on disposal of capital assets and $249,612
in interest income. The Sanitation fund recognized $1 million in environmental remediation
expenses during the year for the Miami Beach Golf Course .
19
MANAGEME NT’S DISCUSSION AND ANALYSIS
(Unaudited)
T he following chart shows a comparison of expenses to program revenues for business - type activities for
fiscal year 20 10 :
Expenses and Program Revenues – Business - type Activities
f or the year ended Septemb er 30, 20 10 (in thousands)
Expenses
40,000
Program revenues
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
Revenue by Source – Business - type Activities
f or the y ear e nded September 30, 20 10 (in thousands)
Operating grants and
contributions
9%
Charges for services
79%
Tax increments
2%
Unrestricted investment
Transfers
earnings
9%
1%
20
MANAGEME NT’S DISCUSSION AND ANALYSIS
(Unaudited)
Financial Analysis of the Governmental Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance -
related legal requirements. The table below summarizes the changes in the fund balances of the City’s
governmental funds.
Governmental Funds
(in thousands)
Other Total
Miami Beach
Govern- Govern-
Redevel-
Capital mental mental
opment
General Resort Tax Projects Funds Funds
Agency
Fund balances
Sep. 30, 2009 $ 55,071 $ 9,618 $ 9,541 $ 202,715 $ 48,362 $ 325,307
Revenues 198,282 43,283 30,997 20,268 32,656 325,486
Expenditures (215,156) (8,108) (8,197) (50,548) (55,157) (337,166)
Other financing
sources (uses) 16,962 (36,353) (19,395) 27,200 21,622 10,036
Fund balances
Sept. 30, 2010 $ 55,159 $ 8,440 $ 12,946 $ 199,635 $ 47,483 $ 323,663
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
funding requirements . In particular, unreserved fund balances may serve as a useful measure of a
government’s net resources available for spending at the end of the fiscal year. The City’s general fund
is required to adopt an annual budget prepared on a basis consistent with Accounting Principles Ge nerally
Accepted in the United States of America (GAAP). Surpluses from any prior fiscal years cannot be
appropriated in future fiscal years .
The g eneral f und is the chief operating fund of the City . At the end of the current fiscal year, fund balance
of the general fund was $ 55. 2 million . This consisted mainly of $ 2.4 million in unrealized gains on the
City’s investments , $ 4.7 million restricted for the future funding of the City’s building department
operations , $ 38.6 million for emergencies , $ .6 milli on in purchase commitments, $3.6 million in
unassigned funds and $ 5.3 million assigned by the City Commission future years shortfall.
The general fund’s net change in fund balance for the fiscal year was $ 88,102 . One key factor in this
growth was the abi lity to maintain expenditures under budgeted amounts . Overall revenues had a net
decrease of $ 17.7 million or 8.2 % over the prior year. Ad- valorem tax , which is 57 .6 % of the general
fund revenue collected, decreased by $ 8.9 million or 7.3 %. As mentioned ea rlier, this is a result of the
decreasing property values City wide. There were also decreases in Building Permits of $5 million or
31.8% and interest income of $6.2 million or 78%, which includes unrealized losses of $1.9 million.
Expenditure s in the gene ral fund also increased by $ .8 million or .4% , p rimarily in the public safety
function. Net o ther financing sources increased by $ 10 million or 144 % over the prior fiscal year. At the
end of the fiscal year, f und balance excluding the nonspendable portio n, represents 25.6 % of total
general fund expenditures .
The r esort tax fund accounts for the collection of special tax levied city - wide on food, beverage and room
rents used to support tourist related activities. At the end of the current fiscal year, fund balance of the
resort tax fund was $ 8.4 million. Resort tax collected during the year was $42.4 million, a decrease of $ 5
million or 13.3 % from the prior fiscal year. Net other financing uses , which was $3 6.4 million increased
b y $ 5.7 million or 18.7 and expenditure s decreased by $ 1 36,206 or 1.7 % . The resort tax fund balance
decreased by $1.2 million or 12.2% from the prior fiscal year and represents 1 04 % of total resort tax
21
MANAGEME NT’S DISCUSSION AND ANALYSIS
(Unaudited)
fund expenditures for the fiscal year.
The Miami Beach Redevelopment Agency (the Agency) Special Revenue Fund accounts for the
operations of the Miami Beach Redevelopment Agency, a tax increment district of the City . The Agency
was established in 1976 under the provisions of Chapter 163 of the Florida Statutes to spur development
and redevelopment in the South Shore and City Center/Historic Convention Village Redevelopment and
Revitalization Area of the City. Tax increments collected during the year was $30.8 million, which is a
decrease of $ 2.6 million or 7.9 %, and net other financing uses decreased by $ 7.1 million or 26.8 % and
expenditure s decreased by $ 439,360 or 5.1 % . The fund balance of the Miami Beach Redevelopment
Agency Special Revenue Fund increased by $ 3.4 million or 35.7 % from the prior fiscal year and
represents 1 58 % of total Agency fund expenditures for the current fiscal year .
The City’s c apital p rojects f und accounts for the funding of the City’s capital program. The primary
resources are obtained from the issuance of City debt, tax increments and intergovernmental revenues .
Intergovernmental revenue s w as $ 6.2 million an increase of $ 1.7 million from the prior fiscal year. Tax
increment which was $1 3.2 million also decreased by $ 1 million or 7.1 % from the prior fiscal year. N et
other financing sources which was $2 7.2 millio n decreased by $ 2.6 million or 8.8 % from the prior fiscal
year . Capital outlay totaled $ 49.5 million in the current year. The capital projects fund balance decreased
by $ 3.1 million or 1.5 % from the prior fiscal year and represents 3 95 % of total capital pr oject fund
expenditures for the current fiscal year.
The other governmental funds consist of the City’s debt service funds and other special revenue funds,
which accounts primarily for grants . Ad Valorem tax collected for debt service was $5.9 million, a n
increase of $5,298 or .1 % from the prior year. Intergovernmental revenue also increased by $ 11.6
million or 260.8 % and net other financing sources which was $ 21.6 million increased b y $ 1.9 million or
9.9% . Expenditure s in the fund increased by $ 7.9 mill ion or 16 .8 %. The fund balance decrease d by
$ 878,177 or 1.8 % from the prior year and represents 116 % of the other governmental funds total
expenditure s for the current fiscal year.
Proprietary funds. The City’s proprietary fund statements provide the same type of information found in
the government - wide financial statements, but in more detail . The total growth in net assets for all
enterprise funds was $ 41.6 million . Other factors concerning the finances of these funds have already
been addressed in th e discussion of the City’s business - type activities.
General Fund Budgetary Highlights
The following information is presented to assist the reader in comparing the original budget (a dopted b udget),
and the final amended budget ( a mended b udget) , and how act ual results compared with these budgeted
amounts. The a mended b udget can be modified subsequent to the end of the fiscal year. Detail budget
information can be found in the RSI section of this document.
The re w ere no variance s between the amended budgeted revenues and actual revenue s plus other
financing sources, except for permits and charges for services, which combines for a net positive variance
of $18,099 . The variance between the amended budgeted appropriations and actual expenditure s was
$16,049 . T his variance resulted mainly from a positive variance in the public safety – police function .
Other financing sources also had a net positive variance of $53,954, which resulted from reserves for
building services and reserves for future expenditures.
22
MANAGEME NT’S DISCUSSION AND ANALYSIS
(Unaudited)
General Fund Revenues
for the fiscal year ended September 30, 2010
(in thousands)
Original Final
Adopted Amended
Budget Budget Actual
Taxes:
Property $ 115,828 $ 114,183 $ 114,183
Sales, use, fuel 1,518 1,423 1,423
Utility 8,991 9,975 9,975
Local business 3,872 4,299 4,299
Communication Service 5,905 6,329 6,329
Taxes 136,114 136,209 136,209
Other than taxes:
Franchise 9,144 8,457 8,457
Permits 10,378 10,720 10,747
Intergovernmental 8,045 8,337 8,337
Charges for services 9,347 9,522 9,514
Rents and leases 4,464 4,759 4,759
Interest income 5,336 1,727 1,727
Fines and forfeits 3,089 2,697 2,697
Administrative fees 7,677 8,827 8,827
Other 8,169 7,009 7,009
Other financing sources 24,573 26,514 24,968
Other than taxes 90,222 88,569 87,042
Total revenues $ 226,336 $ 224,778 $ 223,251
General Fund Expenditures
for the fiscal year ended September 30, 2010
(in thousands)
Original Final
Adopted Amended
Budget Budget Actual
General government $ 34,617 $ 32,690 $ 32,690
Public safety 141,480 143,128 143,112
Physical environment 2,160 2,435 2,435
Transportation 4,433 3,795 3,795
Economic environment 1,518 1,397 1,397
Human services 499 490 490
Culture and recreation 31,655 29,624 29,624
Capital Outlay 629 294 294
Debt service 1,519 1,320 1,320
Other financing uses 7,826 9,605 8,006
Total expenditure $ 226,336 $ 224,778 $ 223,163
23
MANAGEME NT’S DISCUSSION AND ANALYSIS
(Unaudited)
General Fund Revenues
for the year ended September 30, 20 10 (in thousands).
140,000
120,000
Adopted Budget Amended Budget Actual
100,000
80,000
60,000
40,000
20,000
0
The following chart and table summarizes actual expenditures by function/program for fiscal year 20 10
and compare s expenditures with Adopted Budget, Amended Budget and Actual .
.
General Fund Expenditure
for the year ended September 30, 20 10
(in thousands).
160,000
140,000
Adopted Budget Amended Budget Actual
120,000
100,000
80,000
60,000
40,000
20,000
0
24
MANAGEME NT’S DISCUSSION AND ANALYSIS
(Unaudited)
Capital Assets and Debt Administration
Capital Assets
The City’s investment in capital assets for its governmental and business - type activities a t September 30,
2010 amounts to $1 billion (net of accumulated depreciation) . This investment in capital assets includes
land, buildings, water & sewer distribution, storm drainage systems, lighting systems, sidewalks, curbs,
signage, equipment, street improvements, air rights and parks, which are detailed as follows (net of
accumulated depreciation):
Capital Assets
(in thousands)
Governmental Business-Type Total
2009 2010 2009 2010 2009 2010
Land $ 45,832 $ 45,832 $ 24,274 $ 24,275 $ 70,106 $ 70,107
Intangible assets 4,182 4,318 8,500
Construction
work-in-progress
264,948 289,008 198,435 206,763 463,383 495,771
Building & Structure 48,201 61,313 129,802 145,141 178,003 206,454
Permanent
improvements
93,829 90,492 6,541 6,541 100,370 97,033
Furniture, Fixtures &
Equipment 21,779 18,333 46,914 43,980 68,693 62,313
Infrastructure 29,941 27,609 71,468 72,056 101,409 99,665
Total $ 504,530 $ 536,769 $ 477,434 $ 503,074 $ 981,964 $ 1,039,843
The City has developed various capital improvement programs to improve the quality of life of its
residents. Major projects include citywide water, wastewater and storm water improvements, streetscape
enhancements and improvements to parks, beaches, and fire stations. Major capital asset events in
pr ogress during the current fiscal year included the following:
Completed construction of the Frank Gehry - designed Pennsylvania Avenue public parking
garage just west of the New World Symphony ( NWC ) . This fully self - serve garage features 550
parking spaces and approximately 8,000 square feet of first class retail space. The garage
provides access to the NWC via a third floor covered walkway and is illuminated with LED lights
at night that coordinate in color with lights on the protruding sunshade from NWC’s north façade.
Completed construction of a new golf cart storage/maintenance facility located at the Miami
Beach Golf Course. This project is part of the Miami Beach Golf Course renovation project. Parks
& Recreation is currently renting a temporary tent in which the golf course's carts are being
stored. Construction of the cart barn is necessary for the proper and efficient operation of the golf
course.
Continued construction of South Point e improvements phase III – IV. The project limits are
bounded by Ocean Drive to the East and Alton Road to the West, and includes: 1st Street
between Alton Road and Ocean Drive; Commerce Street, from Alton Road to Washington
Avenue; Ocean Drive and Ocean Court, from 5th Street to South Pointe Drive; Collins Avenue
and Collins Court, from 5th Street to South Pointe Drive; South Pointe Drive; South Pointe Drive
(Biscayne Street), from Alton Road to the Eastern street end; Alton Road, from 5th Street to
South Pointe Drive; Jefferson Avenue, between South Pointe Drive and 1st Street; 1st Street,
from Alton Road to Jefferson Avenue; Commerce Street and other adjacent alleys, roadways and
rights of way. This project is included in the City of Miami Beach RWO Infrastructure
25
MANAGEME NT’S DISCUSSION AND ANALYSIS
(Unaudited)
Improvement Program and the Public Works Citywide Water and Sewer Master Plan. The
improvements include the installation of new stormwater infrastructure within priority Basin 1 to
meet the Master Plan recommended level of service; streetscape improvements, including new
sidewalks and crosswalks; traffic calming measures and installation of bump - outs at crosswalks;
enhanced landscaping within median, swale and bump - out areas; enhanced pedestrian lighting;
bike lanes; and parking improvements.
Began construction of Miami Beach Sound S cape new 2.85 acre park designed by West 8 and
developed by the New World Symphony for the City of Miami Beach. The Park is an integral
component of the overall Master Plan involving the N WS Campus Expansion Project. The Park
will become a key attraction for residents and visitors alike. The Park Project budget also
includes additional improvements to infrastructure related areas. The Park open ed in early
February 2011.
Entered into a contract with Ameresco, for facility lighting and lighting controls upgrades
throughout the City. This project provides most of the City's facilities with lighting upgrades and
lighting control upgrades to increase the energy efficiency.
Note C to the financial statements.
Additional information on the City’s capital assets can be found in
26
MANAGEME NT’S DISCUSSION AND ANALYSIS
(Unaudited)
Long -t erm Debt
At the end of the current fiscal year, the City had total bonded debt, loans and other long - term debt of
$4 34 million. Governmental activities debt decreased by $ 3.3 million or 1.4 %, while business - type
activities debt increased by $ 23.6 million or 1 3.6% .
In September 2010, the City received additional equipment loan proceeds of $1.6 million and paid of f the
Sunshine State Loan in the amount of $2 .9 million . I n February 2010, the City partially refinanced the
Stormwater Revenue Bonds, Series 2000 and the Water & Sewer Revenue Bonds, Series 2000, in
conju n ction with issuing new Water & Sewer Bonds for $30 million . The refinancing and new loan was
done through the City of Gulf Breeze, Florida Local Government Loan Pool Program. In addition, i n May
2010 the City obtained a loan of approximately $13 million for the construction/purchase of energy saving
equipment to be used in City facilities .
In November 2011, the City refinanced the Parking Revenue Bonds Series 1997 and received new
monies by issuing the new Parking Revenue Bonds Series 2010A and 2010B. T he City is also planning
on issuing new Stormwater bonds and potentially refinancing the remaining Series 2000 Stormwater
Bonds in fiscal year 2011 .
Additional informati on on the City’s long - term debt can be found in Note G to the financial statements.
Requests for Information
This financial report is designed to provide a general overview of the City of Miami Beach’s finances for
all those with an interest in its finances. Questions concerning any of the information provided in this
report or requests for additional information should be addressed to The City of Miami Beach, Finance
Department, 1700 Convention Center Drive, Miami Beach, Florida 33139.
27
CITY OF MIAMI BEACH, FLORIDA
STATEMENT OF NET ASSETS
September 30, 2010
Primary Government
Governmental Business-type Component
Activities Activities Total Units
ASSETS
Cash and investments $ 306,702,381 $ 89,036,997 $ 395,739,378 $ 2,913,525
Cash with fiscal agent 250,000 250,000
Receivables (net) 21,093,566 13,047,724 34,141,290 314,967
Due from other governments 8,668,203 393,475 9,061,678
Internal balances (33,772) 33,772
Prepaid expenses 3,892,197 225,453 4,117,650
Inventories 282,335 2,487,689 2,770,024
Restricted cash and investments 48,686,132 115,701,015 164,387,147
Deferred charges 78,536 2,238,722 2,317,258
Capital assets not being depreciated:
Land 45,832,216 24,274,408 70,106,624
Intangible assets 4,181,941 4,318,059 8,500,000
Construction in progress 289,008,192 206,763,083 495,771,275
Capital assets net of accumulated
depreciation:
Buildings and structures 61,312,902 145,140,663 206,453,565
Permanent improvements 90,492,482 6,541,249 97,033,731
Machinery and equipment 18,332,488 43,980,472 62,312,960 33,045
Infrastructure 27,608,722 72,056,453 99,665,175
Total assets 926,388,521 726,239,234 1,652,627,755 3,261,537
LIABILITIES
Accounts payable 13,933,704 9,573,103 23,506,807 2,250
Retainage payable 3,768,116 1,669,811 5,437,927
Accrued expenses 5,232,264 1,918,592 7,150,856 281,278
Accrued interest payable 2,439,586 2,070,374 4,509,960
Unearned revenue 3,427,850 853,100 4,280,950
Due to other governments 15,680 23,790 39,470
Noncurrent liabilities:
Due within one year 29,413,676 12,882,163 42,295,839
Due in more than one year 266,077,556 195,182,341 461,259,897
Total liabilities 324,308,432 224,173,274 548,481,706 283,528
NET ASSETS
Invested in capital assets, net of
related debt 375,968,328 346,807,794 722,776,122 33,045
Restricted for:
Debt Service 8,119,354 35,347,264 43,466,618
Economic development 19,676,846 5,686,250 25,363,096
Transportation 13,611,202 13,611,202
Capital Improvement 40,093,590 40,093,590
Other purposes 17,933,548 17,933,548
Unrestricted 126,677,221 114,224,652 240,901,873 2,944,964
Total net assets $ 602,080,089 $ 502,065,960 $ 1,104,146,049 $ 2,978,009
The notes to the financial statements are an integral part of this statement.
28
CITY OF MIAMI BEACH, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
September 30, 2010
Miami Beach Other Total
Redevelopment Governmental Governmental
General Resort Tax Agency Capital Projects Funds Funds
ASSETS
Cash and investments $ 56,112,273 $ 6,052,706 $ 12,902,996 $ 203,002,282 $ 48,208,214 $ 326,278,471
Receivables (net of allowance for
uncollectibles) 14,846,972 3,682,252 49,326 1,162,681 19,741,231
Accrued interest 1,160,301 47,009 1,207,310
Due from other funds 809,789 578,776 219 2,130 1,390,914
Due from other governments 38,081 6,072,646 2,557,476 8,668,203
Prepaid expenditures 4,489 3,004 7,493
Total assets $ 72,967,416 $ 9,734,958 $ 13,486,261 $ 209,171,482 $ 51,933,505 $ 357,293,622
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 3,410,556 $ 123,328 $ 48,527 $ 5,945,448 $ 2,390,219 $ 11,918,078
Retainage payable 556 2,833,689 917,311 3,751,556
Accrued expenditures 3,530,856 612,327 44,413 198,811 480,555 4,866,962
Unearned/deferred revenues 10,456,069 2,285 147,029 512,585 11,117,968
Due to other governments 2,567 82 13,031 15,680
Due to other funds 407,994 559,158 445,512 411,299 136,323 1,960,286
Total liabilities 17,808,598 1,294,813 540,737 9,536,358 4,450,024 33,630,530
Fund balances:
Nonspendable 4,489 4,489
Restricted 4,653,291 8,440,145 12,941,035 168,097,039 36,587,996 230,719,506
Committed 34,091,211 11,813,423 45,904,634
Assigned 44,452,200 69,221 44,521,421
Unassigned 6,053,327 (2,553,126) (987,159) 2,513,042
Total fund balances 55,158,818 8,440,145 12,945,524 199,635,124 47,483,481 323,663,092
Total liabilities and fund balances $ 72,967,416 $ 9,734,958 $ 13,486,261 $ 209,171,482 $ 51,933,505 $ 357,293,622
The notes to the financial statements are an integral part of this statement.
30
CITY OF MIAMI BEACH, FLORIDA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
September 30, 2010
Total fund balances - governmental funds $ 323,663,092
Amounts reported for governmental activities in the statement of net assets
are different because:
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds. These assets consist of:
Land $ 45,223,696
Intangible assets 4,181,941
Construction in progress 288,531,642
Building and structure 104,633,412
Permanent improvements 165,551,394
Machinery and equipment 11,893,793
Infrastructure 120,719,655
Accumulated depreciation (221,916,982)
Total capital assets 518,818,551
Some liabilities are not due and payable in the current period and
therefore are not reported in the funds. Those liabilities consist of:
Bonds, loans and notes payable $ (228,478,024)
Compensated absences (16,929,813)
Accrued interest payable (2,439,586)
OPEB (15,086,123)
Total long term liabilities (262,933,546)
Bond issuance costs are treated as expenditures in the governmental funds,
but are deferred to future periods in the Statement of Net Assets and amortized
over the life of the bonds. 2,621,087
Some Deferred Revenues have met the earned criteria for recognition in the
Statement of Activities. 7,690,118
Internal service funds are used by management to charge the costs of
fleet management, property management, central services, self insurance,
and communications to individual funds. The assets and liabilities of the
internal service funds are included in governmental activities in the
statement of net assets. 12,220,787
Net assets of governmental activities $ 602,080,089
The notes to the financial statements are an integral part of this statement.
31
CITY OF MIAMI BEACH, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Fiscal Year Ended September 30, 2010
Miami Beach Other Total
Redevelopment Governmental Governmental
General Resort Tax Agency Capital Projects Funds Funds
REVENUES
Taxes:
Property $ 114,182,548 $ $ $ $ 5,933,745 $ 120,116,293
Sales, use and fuel 1,422,613 2,744,563 4,167,176
Utility 9,975,273 9,975,273
Resort 42,394,976 42,394,976
Local business 4,298,739 4,298,739
Tax increment 30,815,584 13,197,220 44,012,804
Communication service 6,328,924 6,328,924
Other 2,069,169 2,069,169
Franchise fees 8,456,962 8,456,962
Permits 10,746,531 10,746,531
Intergovernmental 8,337,021 6,169,814 16,044,799 30,551,634
Charges for services 9,513,816 3,133,953 12,647,769
Rents and leases 4,759,126 97,298 4,856,424
Interest 1,727,032 183,910 58,157 320,148 322,492 2,611,739
Fines and forfeitures 2,697,071 722,338 3,419,409
Administrative fees 8,827,372 8,827,372
Impact fees 1,211,002 1,211,002
Other 7,008,962 703,756 25,825 581,335 474,353 8,794,231
Total revenues 198,281,990 43,282,642 30,996,864 20,268,517 32,656,414 325,486,427
EXPENDITURES
Current:
General government 32,690,010 1,149,079 5,742,633 854,345 40,436,067
Public safety 143,112,112 2,446,677 1,081,691 6,637,764 153,278,244
Physical environment 2,435,047 2,435,047
Transportation 3,794,601 2,441,830 6,236,431
Economic environment 1,396,749 11,707,245 13,103,994
Human services 489,867 1,183,835 1,673,702
Culture and recreation 29,624,247 6,958,502 2,054,265 38,637,014
Capital Outlay 294,083 7,872 49,466,026 5,292,163 55,060,144
Debt service:
Principal retirement 690,000 14,537,706 15,227,706
Interest and fiscal charges 629,676 10,447,371 11,077,047
Total expenditures 215,156,392 8,107,581 8,197,182 50,547,717 55,156,524 337,165,396
Excess (deficiency) of revenues over
(under) expenditures (16,874,402) 35,175,061 22,799,682 (30,279,200) (22,500,110) (11,678,969)
OTHER FINANCING SOURCES (USES)
Sale of capital assets 2,213 2,065 200 4,478
Transfers in 24,966,083 3,845,345 15,704,722 27,305,808 71,821,958
Transfers out (8,005,792) (36,353,160) (23,242,900) (1,719,344) (5,749,475) (75,070,671)
Loan proceeds 13,214,259 65,400 13,279,659
Total other financing sources (uses) 16,962,504 (36,353,160) (19,395,490) 27,199,637 21,621,933 10,035,424
Net change in fund balances 88,102 (1,178,099) 3,404,192 (3,079,563) (878,177) (1,643,545)
Fund balances - beginning of year 55,070,716 9,618,244 9,541,332 202,714,687 48,361,658 325,306,637
Fund balances - end of year $ 55,158,818 $ 8,440,145 $ 12,945,524 $ 199,635,124 $ 47,483,481 $ 323,663,092
The notes to the financial statements are an integral part of this statement.
32
CITY OF MIAMI BEACH, FLORIDA
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2010
Net change in fund balance - total governmental funds $ (1,643,545)
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense.
In the current period, these amounts are:
Capital outlay $ 44,294,970
Deletions (12,320)
Depreciation expense (8,794,667)
Excess of capital outlay over depreciation expense 35,487,983
The issuance of long-term debt (e.g. bonds, loans) provides current financial
resources to governmental funds, while the repayment of the principal of long-
term obligations is an expenditure in the governmental funds. Neither
transaction , however, has any effect on net assets. Also, governmental
funds report the effect of issuance costs, premiums, discounts, and similar
items when debt is first issued, whereas these amounts are deferred and
amortized in the statement of activities.
In the current year, these amounts consist of:
Bonds, loans and notes principal retirement $ (11,703,610)
Loan proceeds 13,465,658
Amortization of net bond premium 149,057
Amortization of bond issuance costs (188,963)
OPEB (8,178,000)
Total long term-debt retirement and related transactions (6,455,858)
Some expenses 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.
These activities consist of:
Increase in compensated absences $ (243,673)
Decrease in accrued interest expense 103,836
Total additional expense (139,837)
Deferred revenue that meet the revenue recognition criteria in the Statement
of Activities, but not the fund statements, i.e. property taxes. (125,849)
Internal funds are used by management to charge the costs of fleet
management, property management, central services, self insurance,
and communications to individual funds. (55,175)
Change in net assets of governmental activities $ 27,067,719
The notes to the financial statements are an integral part of this statement.
33
CITY OF MIAMI BEACH, FLORIDA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
September 30, 2010
Governmental
Convention Other Activities-
Storm Water Water and Parking System Center Enterprise Internal
Utility Fund Sewer Fund Fund Complex Fund Funds Totals Service Funds
ASSETS
Current assets:
Cash and investments $ 1,958,848 $ 17,787,146 $ 34,149,982 $ 10,220,520 $ 24,920,501 $ 89,036,997 $ 29,110,042
Cash with fiscal agent 250,000
Restricted cash and investments:
Revenue bonds covenant 3,930,000 1,810,876 5,740,876
Accounts receivable (net of
allowance for uncollectibles) 731,875 5,433,553 4,025,569 1,792,637 978,570 12,962,204 145,025
Accrued interest receivable 4 85,516 85,520
Due from other governments 393,475 393,475
Due from other funds 4,155 6,955 103,047 114,157 1,051,744
Prepaid expenses 7,817 164,251 53,385 225,453 1,263,617
Inventories 2,478,201 9,488 2,487,689 282,335
Total current assets 2,690,727 29,718,571 40,010,687 12,570,883 26,055,503 111,046,371 32,102,763
Noncurrent assets:
Restricted cash and
investments:
Customer deposits 6,942,262 42,556 1,840,961 78,478 8,904,257
Interlocal agreement 5,686,250 5,686,250
Revenue bonds covenant 14,703,003 73,439,643 7,226,986 95,369,632
Deferred charges 323,282 1,526,021 387,831 1,588 2,238,722 78,536
Capital assets:
Land 1,492,598 17,283,478 2,089,371 3,408,961 24,274,408 608,520
Intangible assets 4,318,059 4,318,059
Buildings and structures 7,922,487 62,730,142 162,423,600 13,397,987 246,474,216 2,191,235
Parking lots 4,069,504 4,069,504
Mains and lines 1,994,411 96,046,702 98,041,113
Meters and hydrants 12,386,321 2,680,094 15,066,415
Machinery and equipment 2,031,138 46,577,383 4,186,993 10,267,309 3,508,951 66,571,774 65,671,013
Construction in progress 78,467,003 72,863,798 35,439,897 19,030,621 961,764 206,763,083 476,550
Less accu mulated depreciation (1,788, 143) (52,578,012) (24,025,006) (76,639,973) (7,473,051) (162,504,185) (50,996,926)
Total capital assets (net of
accumulated depreciation) 80,704,409 184,711,277 106,683,161 117,170,928 13,804,612 503,074,387 17,950,392
Total noncurrent assets 95,730,694 266,619,203 114,340,534 124,698,139 13,884,678 615,273,248 18,028,928
Total assets 98,421,421 296,337,774 154,351,221 137,269,022 39,940,181 726,319,619 50,131,691
LIABILITIES
Current liabilities:
Accounts payable 559,895 4,385,449 1,632,068 2,345,148 650,543 9,573,103 2,015,626
Retainage payable 739,048 422,283 301,655 206,825 1,669,811 16,560
Accrued expenses 706,251 1,909,968 454,601 679,281 238,865 3,988,966 365,302
Due to other funds 36,749 43,636 80,385 516,144
Due to other governments 614 19,708 3,468 23,790
Bonds payable 3,930,000 1,810,876 5,740,876
Loans payable 24,152 52,976 42,410 111,508 231,046 2,320,338
Deposits 4,016,394 42,556 1,840,961 78,478 5,978,389
Accrued compensated absences 61,548 344,186 384,058 4,517 288,320 1,082,629 415,264
Unearned revenue 339,050 475,000 39,050 853,100
Pending insurance claims 7,666,173
Total current liabilities 2,090,894 15,061,256 5,044,637 5,571,440 1,453,868 29,222,095 13,315,407
Noncurrent liabilities:
Pending insurance claims 3,880,921
Insurance claims incurred but not
reported 13,347,202
Deposits 2,925,868 2,925,868
Accrued compensated absences 76,326 116,641 245,168 44,923 332,421 815,479 738,474
Environmental remediation liability 1,000,000 1,000,000
Loans payable 203,306 207,481 155,661 422,958 989,406 6,628,900
Revenue bonds payable (net of
unamortized discounts) 42,644,662 125,506,665 21,149,484 189,300,811
Total noncurrent liabilities 42,924,294 128,756,655 21,550,313 44,923 1,755,379 195,031,564 24,595,497
Total liabiIities 45,015,188 143,817,911 26,594,950 5,616,363 3,209,247 224,253,659 37,910,904
NET ASSETS
Invested in capital assets, net of
related debt 37,832,289 95,009,701 83,524,730 117,170,928 13,270,146 346,807,794 9,001,154
Restricted:
Interlocal agreement 5,686,250 5,686,250
Debt covenant 11,029,859 17,545,295 6,772,110 35,347,264
Unrestricted 4,544,085 39,964,867 37,459,431 8,795,481 23,460,788 114,224,652 3,219,633
Total net assets $ 53,406,233 $ 152,519,863 $ 127,756,271 $ 131,652,659 $ 36,730,934 $ 502,065,960 $ 12,220,787
The notes to the financial statements are an integral part of this statement.
34
CITY OF MIAMI BEACH, FLORIDA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For the Fiscal Year Ended September 30, 2010
Governmental
Convention Other Activities-
Storm Water Water and Parking Center Enterprise Internal
Utility Fund Sewer Fund System Fund Complex Fund Funds Totals Service Funds
Operating revenues:
Charges for services $ 11,212,773 $ 68,728,216 $ 30,014,763 $ 6,898,642 $ 8,569,446 $ 125,423,840 $ 62,278,544
Permits, rentals, and other 123 180,422 4,742,171 5,036,749 8,205,519 18,164,984 3,253,774
Total operating revenues 11,212,896 68,908,638 34,756,934 11,935,391 16,774,965 143,588,824 65,532,318
Operating expenses:
Personal services 1,615,591 6,927,846 9,379,656 2,634,736 8,090,038 28,647,867 11,580,033
Operating supplies 76,203 765,198 210,606 398,144 50,867 1,501,018 4,151,539
Contractual services 201,448 33,354,992 6,917,922 2,236,664 5,487,923 48,198,949 7,241,635
Utilities 61,431 761,306 928,431 1,225,458 102,929 3,079,555 2,301,071
Insurance 152,720 149,815 302,535 10,555,734
Internal charges 591,686 3,318,535 2,684,462 1,132,879 1,457,963 9,185,525 2,121,173
Depreciation 241,484 3,744,090 1,809,720 5,021,045 787,232 11,603,571 6,911,507
Administrative fees 601,906 2,567,040 2,758,620 491,558 1,035,590 7,454,714 567,231
Amortization 71,256 178,471 80,174 440 330,341 16,094
Claims and judgements 20,882,482
Other operating 170,330 703,844 305,577 37,185 1,847,824 3,064,760 532,932
Total operating expenses 3,631,335 52,321,322 25,227,888 13,327,484 18,860,806 113,368,835 66,861,431
Operating income (loss) 7,581,561 16,587,316 9,529,046 (1,392,093) (2,085,841) 30,219,989 (1,329,113)
Nonoperating revenues
(expenses):
Interest and fiscal charges (382,280) (2,675,957) (1,224,939) (15,342) (4,298,518) (321,531)
Gain (loss) on disposal of
capital assets (7,465) 23,168 5,216 (496,858) 23,813 (452,126) 89,522
Interest income 231,348 723,688 691,568 186,864 249,612 2,083,080 490,700
Total nonoperating revenues
(expenses) (158,397) (1,929,101) (528,155) (309,994) 258,083 (2,667,564) 258,691
Income (loss) before
contributions and transfers 7,423,164 14,658,215 9,000,891 (1,702,087) (1,827,758) 27,552,425 (1,070,422)
Capital contributions 10,507,487 10,507,487 300,097
Transfers in 3,612,532 952,528 4,565,060 874,589
Transfers out (589,158) (1,301,064) (135,539) (5,736) (2,031,497) (159,439)
Change in net assets 6,834,006 14,658,215 21,819,846 (1,837,626) (880,966) 40,593,475 (55,175)
Total net assets - beginning 46,572,227 137,861,648 105,936,425 133,490,285 37,611,900 461,472,485 12,275,962
Total net assets - ending $ 53,406,233 $ 152,519,863 $ 127,756,271 $ 131,652,659 $ 36,730,934 $ 502,065,960 $ 12,220,787
The notes to the financial statements are an integral part of this statement.
35
CITY OF MIAMI BEACH, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Fiscal Year Ended September 30, 2010
Governmental
Convention Other Activities-
Storm Water Water and Parking System Center Enterprise Internal
Utility Fund Sewer Fund Fund Complex Fund Funds Totals Service Funds
Cash flows from operating
activities:
Cash received from
customers $ 11,406,231 $ 68,619,546 $ 30,138,417 $ 6,375,061 $ 12,169,878 $ 128,709,133 $ 62,259,110
Cash paid to suppliers (1,180,450) (35,056,579) (7,665,282) (2,859,558) (6,641,042) (53,402,911) (26,529,991)
Cash paid to employees (1,657,375) (6,917,001) (9,354,731) (2,622,161) (8,033,820) (28,585,088) (11,691,084)
Cash paid for claims and
judgements (20,561,026)
Internal charges-payments
made to other funds (1,193,592) (5,885,575) (5,443,082) (1,624,437) (2,536,695) (16,683,381) (2,702,298)
Other operating revenues 123 180,422 4,742,171 4,643,274 6,987,288 16,553,278 3,405,507
Net cash provided by
operating activities 7,374,937 20,940,813 12,417,493 3,912,179 1,945,609 46,591,031 4,180,218
Cash flows for non-capital
financing activities:
Transfers in 3,612,532 952,528 4,565,060 874,589
Transfers out (589,158) (1,301,064) (135,539) (5,736) (2,031,497) (159,439)
Net cash provided by
(used in) non-capital
financing activities (589,158) 2,311,468 (135,539) 946,792 2,533,563 715,150
Cash flows from capital
and related financing
activities:
Loan proceeds 178,297 118,434 296,731 869,650
Bond proceeds 30,000,000 30,000,000
Repayment of loan (23,087) (30,668) (46,211) (109,420) (209,386) (2,449,088)
Interest and fiscal charges (260,354) (2,038,993) (1,237,719) (15,582) (3,552,648) (335,198)
Bond payments-principal (1,190,000) (3,775,000) (1,727,294) (6,692,294)
Purchase of capital assets (7,584,011) (13,448,480) (3,600,468) (3,496,365) (331,875) (28,461,199) (3,396,115)
Proceeds from sale of
capital assets 30,584 5,216 5,000 29,956 70,75 6 123,605
Net cash provided by
(used in) capital and
related financing activities (9,057,452) 10,915,740 (6,606,476) (3,491,365) (308,487) (8,548,040) (5,187,146)
Cash flows from investing
activities:
Interest on investments 231,365 654,177 691,568 186,864 249,612 2,013,586 490,699
Net cash provided by
investing activities 231,365 654,177 691,568 186,864 249,612 2,013,586 490,699
Net increase (decrease)
in cash and equivalents (2,040,308) 32,510,730 8,814,053 472,139 2,833,526 42,590,140 198,921
Cash and investments -
beginning of year 18,702,159 69,588,321 34,416,347 17,275,592 22,165,453 162,147,872 29,161,121
Cash and investments
- end of year $ 16,661,851 $ 102,099,051 $ 43,230,400 $ 17,747,731 $ 24,998,979 $ 204,738,012 $ 29,360,042
Classified as:
Current assets $ 1,958,848 $ 17,787,146 $ 34,149,982 $ 10,220,520 $ 24,920,501 $ 89,036,997 $ 29,360,042
Restricted assets 14,703,003 84,311,905 9,080,418 7,527,211 78,478 115,701,015
Total cash and investments $ 16,661,851 $ 102,099,051 $ 43,230,400 $ 17,747,731 $ 24,998,979 $ 204,738,012 $ 29,360,042
Non-cash transactions
affecting financial position:
Change in construction and
related liabilities $ (1,683,745) $ 389,815 $ 72,479 $ 19,583 $ $ (1,201,868) $
Change in deferred refunding
costs 423,229 510,671 933,900
Change in bond discount (157,382) (173,322) (330,704)
Loss on bond refunding (130,000) (110,000) (240,000)
Capital contributions of
capital assets 10,507,487 10,507,487 300,097
Total Non-cash transactions
affecting financial position $ (1,547,898) $ 617,164 $ 10,579,966 $ 19,583 $ $ 9,668,815 $ 300,097
(continued)
36
CITY OF MIAMI BEACH, FLORIDA
STATEMENT OF CASH FLOWS
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES
PROPRIETARY FUNDS
For the Fiscal Year Ended September 30, 2010
(continued)
Governmental
Convention Other Activities-
Storm Water Water and Parking Center Enterprise Internal
Utility Fund Sewer Fund System Fund Complex Fund Funds Totals Service Funds
Operating income (loss) $ 7,581,561 $ 16,587,316 $ 9,529,046 $ (1,392,093) $ (2,085,841) $ 30,219,989 $ (1,329,113)
Adjustments to reconcile
operating income (loss) to
cash provided by (used in)
operating activities:
Depreciation and amorti-
zation 312,740 3,922,561 1,889,894 5,021,045 787,672 11,933,912 6,927,601
Provision for uncollectible
accounts 142,794 381,350 (50,980) (67,787) 64,809 470,186 5,588
Changes in assets and
liabilities:
(Increase) decrease in
inventories (262,959) 32 (262,927) 21,507
(Increase) decrease in
accounts receivable 50,664 (642,171) 215,887 (390,513) 61,486 (704,647) 127,150
(Increase) decrease in
due from other govern-
ments (393,475) 1,129 (392,346)
(Increase) decrease in
due from other funds (3,655) (6,955) 2,214,812 2,204,202 2,165,891
(Increase) decrease in
prepaid expense 786 (7,817) (38,843) 10,476 (35,398) 34,107
Increase (decrease) in
accounts payable (1,002,090) 735,007 874,309 919,891 (295,748) 1,231,369 (647,590)
Increase (decrease) in
retainage payable 16,560
Increase (decrease) in
accrued expenses 329,295 63,161 92,380 340,415 64,523 889,774 7,828
Increase (decrease) in
deposits 155,806 7,310 (65,281) 11,105 108,940
Increase (decrease) in
due to other governments (91,470) (22,404) 3,468 (110,406)
Increase (decrease) in due to other
funds 36,491 30,857 67,348 (3,380,591)
Increase (decrease) in environmental remediation liability
liability 1,000,000 1,000,000
Increase (decrease) in
unearned revenues (78,099) 29,099 (49,000)
Increase in pending
insurance claims 963,478
(Decrease) in insurance
claims incurred but not
reported (642,022)
Inc r ease (decrease) in
accrued compensated
absences ( 40,027) 3,611 7,465 1,224 47,762 20,035 (90,176)
Total adjustments (206,624) 4,353,497 2,888,447 5,304,272 4,031,450 16,371,042 5,509,331
Net cash provided by
operating activities $ 7,374,937 $ 20,940,813 $ 12,417,493 $ 3,912,179 $ 1,945,609 $ 46,591,031 $ 4,180,218
The notes to the financial statements are an integral part of this statement.
37
CITY OF MIAMI BEACH, FLORIDA
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
September 30, 2010
Trust Funds Agency Fund
Assets
Cash and cash equivalents $ 17,056,959 $ 6,698,130
Receivables:
Accounts, net 114,662
Accrued interest 3,308,048
Contributions 2,330,256
Other 50,125
Prepaid expenses 5,450
Investments, at fair value:
Short-term investments 540,416
U.S. Government securities 62,084,667
Corporate bonds and notes 195,651,437
Common stocks and index funds 276,347,169
Aggregated bond funds 70,118,606
Aggregated equity funds 293,180,346
Money market funds 4,970,326
Real estate funds 15,611,166
Mutual funds self-directed DROP participants 12,460,565
Total investments 930,964,698
Total assets 953,715,536 6,812,792
Liabilities
Accounts payable 13,909,916 142,277
Deposits 6,670,515
Total liabilities 13,909,916 6,812,792
Net Assets
Held in trust for pension benefits $ 939,805,620 $
The notes to the financial statements are an integral part of this statement.
38
CITY OF MIAMI BEACH, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
For the Fiscal Year Ended September 30, 2010
Trust Funds
Additions:
Contributions -
Employer $ 42,290,663
Employee 11,760,930
State of Florida 2,069,169
Buybacks/transfers from other systems 1,075,434
Other 3,878
Total contributions 57,200,074
Investment Income -
Net increase/(decrease) in fair value of investments 75,886,596
Interest and dividends income 20,399,405
96,286,001
Investment management expenses (3,090,852)
Net investment income 93,195,149
Total additions/(reduction) 150,395,223
Deductions:
Benefit paid 75,669,145
Contributions refunded 600,375
Transfers to other systems 408,164
Administrative expenses 1,514,378
Total deductions 78,192,062
Net increase 72,203,161
Net assets held in trust for pension benefits -
beginning of year 867,602,459
Net assets held in trust for pension benefits -
end of year $ 939,805,620
The notes to the financial statements are an integral part of this statement.
39
CITY OF MIAMI BE ACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
I. Summary of Significant Accounting Policies
The financial statements of the City of Miami Beach, Florida (the "City") have been prepared in accordance with
A ccounting P rinciples Generally Accepted in the United State of America (GAAP) as applied to gove rnmental
units. 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 Repo rting Standards, which along with subsequent GASB pronouncements (Statements
and Interpretations), constitutes GAAP for governmental units.
GASB statement No. 20,
Accounting and Financial Reporting for Proprietary Funds and Other Governmental
, offers the option of following all Financial Accounting Standards
Entities tha t use Proprietary Fund Accounting
Board (FASB) standards issued after November 30, 1989, unless the latter conflict with or contradict GASB
pronouncements, or not following FASB standards i ssued after such date. The City has selected not to implement
FASB standards issued after November 30, 1989 for reporting business - type activities and enterprise funds.
A. Reporting e ntity
The City was incorporated as a municipal corporation on March 26, 1915 and was created by the Florida
Legislature, Chapter 7672, Laws of Florida (1917). The City is governed by an elected mayor and six - member
commission. The City operates under a Commission - Manager form of government.
Financial accountability includes such aspects as appointment of governing body members, budget review,
approval of property tax levies, outstanding debt secured by the full faith credit of the City or its revenue
stream, and responsibility for funding deficits.
The accompanying financial statements present the City and its component units, entities for which the City is
considered to be financially accountable, or for which the nature and significance of their relationship with the
primary government are such that exclusion would cause the reporting entity’s financial statements to be
misleading or incomplete. Blended component units, although legally separate entities, are, in substance, part
of the City’s operations. D iscretely presented component unit s are reported in a separate col umn in the
government - wide financial statements to emphasize that they are legally separate from the City . The
component units are described below.
1. Blended Component Units:
Miami Beach Redevelopment Agency
The Miami Beach Redevelopment Agency (the " Agency") was created under the Community
Redevelopment Act of 1969, enacted by the Florida Legislature. The Agency's Board of Directors is the
City Commission. The Agency's executive director is the City Manager. The Agency's budget is adopted
by its directors, and over 50% of the Agency's operating revenue is derived from the City's tax increment
contributions.
Miami Beach Neighborhood Improvement District No. 1
The Miami Beach Neighborhood Improvement District No. 1 (the "NID No. 1") was created under Chapter
87 - 243, Section 55 - 73, of the Florida Statutes . The NID No. 1's Board of Directors is the City
Commission. The NID No. 1 had no financial activity during fiscal year 2010 .
Miami Beach Neighborhood Improvement District No. 2
The Miami Beach Neighborhood Improvement District No. 2 (the "NID No. 2") was created under Chapter
87 - 243, Section 55 - 73, of the Florida Statutes. The NID No. 2's Board of Directors is the City
Commission . The NID No. 2 had no financial activity during fiscal year 2010 .
Miami Beach Neighborhood Improvement District No. 3
The Miami Beach Neighborhood Improvement District No. 3 (the "NID No. 3") was created under Chapter
40
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
87 - 243, Section 55 - 73, of the Florida Statutes . The NID No. 3's Board of Directors is the City
Commiss ion . The NID No. 3 had no financial activity during fiscal year 2010 .
Normandy Shores Local Government Neighborhood Improvement District
The Miami Beach Normandy Shores Local Government Neighborhood Improvement District ( the
"NSNID") was created under Chapter 163.506, of the Florida Statutes . The NSNID's Board of Directors is
the City Commission. The NSNID's revenues are derived from ad valorem taxes. The NSNID is
accounted for as a blended component unit in the City's Governmental Funds financial sta tements under
t he column entitled, “Other Governmental Funds”.
2. Discrete ly Presented Component Units - Governmental Fund Type:
Miami Beach Health Facilities Authority
The Miami Beach Health Facilities Authority (the "Authority") was created under the He alth Facilities
Authorities Law, Chapter 154, Part III of the Florida Statutes. The Authority’s Board is appointed by the
City Commission, serves a four - year term and is subject to reappointment. The revenue of the Authority
is derived from fees generated from the sale of bonds to finance health facilities within Miami Beach. The
City receives all funds of the Authority in excess of operational needs of the Authority. Debt issued under
the oversight of the Authority is not debt of the City or the Authority and therefore is not included in the
accompanying financial statements. The Authority is accounted for as a discretely presented component
unit in the City's financial statements. The Authority accounts for its financial activities using only a
gene ral fund.
Miami Beach Visitor and Convention Authority
The Miami Beach Visitor and Convention Authority (the "VCA") was created under Chapter 67 - 930,
Section 8, of the Florida Statutes. The VCA is appointed by the City Commission to administer a portion
of the collections of the municipal resort tax in order to promote tourism and convention business.
Operating costs of the VCA are paid by the City. The VCA is accounted for as a discretely presented
component unit in the City's financial statements.
Complete financial statements for the component units may be obtained at the entity's offices:
Miami Be ach Redevelopment Agency
1700 Convention Center Drive
Miami Beach, Florida 33139
Miami Beach Visitor and Convention Authority
th
Street , Suite 402A
777 17
Miami Beach, Florida 33139
B. Government -w ide and fund fi nancial s tatements
The government - wide financial statements report information on all of the nonfiduciary activities of the City and
its component units. For the most part, the effect of interfund activity has been removed from these
statements. Interfund services provided and used are not eliminated in the process of consolidation.
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are report ed
separately from business - type activities, which rely to a significant extent on fees and charges for support. In
the government - wide Statement of Net Assets, both the governmental and business - type activities columns
reflect a full accrual, economic resource basis, which incorporates long - term assets as well as long - term debt
and obligations.
The statement of activities demonstrates the degree to which the direct expenses of a given functional
category are offset by program revenues. Direct expenses a re those that are clearly identifiable with a specific
functional category. Program revenues include 1) charges to customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given functional category and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular functional
41
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
category. Taxes and other items not properly included among program revenues are reported instead as
general revenues.
The governmental funds financial statements are presented on a current financial resource and modifie d
accrual basis of accounting. Since the governmental fund statements are presented on a different
measurement focus and basis of accounting than the government - wide statements’ governmental column, a
reconciliation is necessary to explain the adjustments necessary to reconcile the fund based financial
statements to the government - wide presentation.
Internal service funds of a government are presented in summary form as part of the proprietary fund financial
statements. Since the principal users of the internal services are the City’s governmental activities, financial
statements of internal service funds are consolidated into the governmental column when present ed at the
government - wide level. The costs of these services are allocated to the appropriate functional activity.
The City’s fiduciary funds are presented in the fund financial statements by type. Since by definition, these
assets are being held for the benefit of a third party (other local governments, private parties, pension
participants, etc.) and cannot be used to address activities or obligations of the City , these funds are not
incorporated into the government - wide statements.
Separate fund fina ncial statements are provided for governmental funds, proprietary funds, and fiduciary
funds, even though the latter are excluded from the government - wide financial statements. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
C. Measurement f ocus, b asis of a ccounting, and f inancial s tatement p resentation
The government - wide financial statements are reported using the economic resources measurement focus
and the ac crual basis of accounting, as are the proprietary fund and fiduciary fund financial statements , except
for the agency fund which has no measurement focus and is reported using the accrual basis of accounting .
Revenues , including charges for services 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 have been met.
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 thereafter to pay liabilities of the current period. For this purpose, the City considers
revenues to be available if they are collected within 45 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt
service expenditures, as well as expenditures related to compensated absen ces , claims and judgments,
pensions , pollution remediation obligation and other postemployment benefits are recorded only when
payment is due , or when the City has made a decision to fund those obligations with current available
resources .
Property taxes, when levied for, charges for services, franchise taxes, licenses, grants and intergovernmental
revenue s , when all eligibility requirements are met , and interest associated with the current fiscal period , if
measurable and available , have been recognized as revenues of the current fiscal period . Only the portion of
special assessments receivable due within the current fiscal period is considered to be susceptible to accrual
as revenue of the current period. All other revenue items are considered to be meas urable when the City
receives the cash.
42
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
Governmental funds – typically are used to account for tax - supported activities. The City reports the
following major governmental funds:
The is the City’s primary operating fund. It accounts f or all financial resources that
Ge neral F und
relate to the general operations of the City, except those required to be accounted for in another
fund.
The accounts for the collection of the special tax levied city -
R esort T ax S pecial R evenue F und
wide on food, beverage and room rents used to support tourist related activities.
The accounts for the operations of
Miami Beach Redevelopment Agency S pecial R evenue F und
the Miami Beach Redevelopment Agency, a tax increment district of the City. The Agency was
established in 1976 under the provisions of Chapter 163 of the Florida Statu t es to spur
development and redevelopment in the South Pointe and City Center/Historic Convention Village
Redevelopment and Revitalization Area of the City. The South Pointe District under the
ju risdiction of the Agency has expired and South Pointe is now under jurisdiction of the City .
The C accounts for proceeds of the City’s bond sales and other revenues
apital P rojects F und
whose expenditure is restricted to the construction and acquisition of major capital projects.
Proprietary funds – are used to account for activities supported, a t least in part, by fees or charges. The City
reports the following major proprietary funds:
The accounts for the storm water utility operations of the City.
S torm W ater Utility F und
The accounts for the water and sewer operations of the City.
W ater and S ewer F und
The accounts for the parking operations of the City.
P arking S ystem F und
The accounts for the C onvention C enter and the T heatre of
C onvention C enter C omplex F und
Performing Arts (TOPA) operations of the City.
Other fund types :
account for services provided to other departments or agencies of the
Internal service funds -
government . The internal service operations include:
– accoun ts for the warehouse operations and the purchase and maintenance
Fleet Management
of the City’s fleet of vehicles.
– accounts for the cleaning, operating and renovations of City buildings.
Property Management
– accounts for the operation of the office supplies warehouse, central printing
Central Services
function and central mail facility.
– accounts for the City’s Risk insurance operations, both
Risk Management Self Insurance
retained and i nsured.
– accounts for the City’s Health insurance operati ons , both retained and
Health Self Insurance
insured .
– accounts for centralized telecommunications operations.
Communications
43
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
- used to account for assets held by the City in a trustee capacity or as an agent for
Fiduciary Funds
individuals, private organizations, other Governments and other funds. The City reports the following
fiduciary fund types:
funds include:
Pension trust
Retirement System for Miami Beach Employees ’,
Retirement System for Firefighters and Police Officers ,
Policemen’s Relief and Pension Fu nd ,
Firemen’s Relief and Pension Fund, and
Post Employment Benefits Other Than Pensions (OPEB) .
– this fund accounts for general deposits held in trust until obligations are
General Agency fund
met or refunds are made.
As a general rule the effect of interfund activity has been eliminated from the government - wide financial
statements. The following describes the four basic types of made during the year and
interfund transactions
the related accounting policies:
1. Transactions for service s rend ered or facilities provided are recorded as revenue in the receiving fund and
expenditures, either as internal charges or administrative fees , in the disbursing fund;
2. Transactions to reimburse a fund for expenditures made by it for the benefit of another fund are recorded
as expenditures in the disbursing fund and as a reduction of expenditures in the receiving fund;
3. Transactions which are recurring annual transfers between two or more budgetary funds are recorded as
transfers in and out; and
4. Trans actions record ing capital contributions between funds are recorded in the proprietary funds and are
net to zero in the government - wide statement of activities. The governmental funds do not record capital
assets or capital transfers of assets.
Amounts reported as include: charges to customers or applicants for goods, services, or
program revenues
privileges provided, operating grants and contributions, and capital grants and contributions, including special
assessments.
Internally dedicated resources ar e reported as general revenues rather than as program revenues. All taxes
are included in general revenues.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues
and expenses generally result from providing services and producing and delivering goods in connection with
a proprietary fund’s principal ongoing operations. The principal operating revenues of the enterprise fund s
an d the internal service funds are charges to customers for sales and service s. Operating expenses for
enterprise funds and internal service funds include the cost of sales and services, administrative expenses,
and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted
resources first, then unrestricted resources as they are needed.
44
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
D. Assets, liabilities, and net assets or equ ity
1.
Cash a nd investments
All cash and investments are reflected as pooled cash and investments. Cash and investments consist of
demand deposits with banks, United States Treasury Obligations, State or Municipal O bligations , Money
Market Funds, and Repurchase Agreements. Investments are recorded at fa ir value , except for those
investments with remaining maturities of one year or less at the time of purchase, which are recorded at
amortized cost.
For the purpose of the Statement of Cash Flows for th e Proprietary Fund Types, pooled cash and
investments are considered cash and cash equivalents
The cash and investments for the retirement system are maintained in separate cash and investment
accounts . The retirement system investments are held in United States Treasury Obligations, loans
guaranteed by Government agencies, Mutual and Money Market Funds, General Obligation or Revenue
Bonds issued by States and Municipalities, dividend paying stocks of domestic corporations, bonds, notes
or other interes t bearing obligations of domestic corporations, and shares and accounts of savings and
loan associations. The retirement system’s investments are recorded at fair market value.
2. Receivables and payables
D uring the course of its operations, the City has numerous transactions between funds to finance
operations, provide services, construct assets and service debt. To the extent that certain transactions
between funds have not been paid or received as of September 30, balances of interfund amounts
receivab le or payable have been reflected. Any residual balances outstanding between the governmental
activities and business - type activities are reported in the government - wide financial statements as
“internal balances.”
All receivables are shown net of an allowance for uncollectibles. Account s receivable in excess of 90
days that are not deemed collectible, comprise the allowance for uncollectibles.
Following are the significant components of the receivables due to the City at September 30, 2010 :
a. Wat er, Sewer and Waste Fees – This amount represents the unpaid, unbilled and billed charges for
various fines and municipal services;
b. Taxes, Franchise Fees and Rents – This amount represents Ad Valorem taxes, including deli n quent
taxes , communication and utility taxes, along with franchise fees and rent payments due by
September 30, 2010 , but not collected as of that date;
c. Resort Taxes Receivable – This amount represents resort taxes due by September 30, 2010 , but
not collected as of that date ;
d. Storm Water Receivable – This amount represents the unpaid, billed charges for treating water runoff
from impervious areas; and
e. Accrued Interest Receivable – This amount represents the interest earned but not collected on the
City’s investments at September 30, 2010 .
f. Intergovernmental Receivable – This amount represents grant revenue earned b ut not received by
the City as of September 30, 2010 and state r evenue sharing received within 45 days of year end.
45
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
3. Inventories and prepaid
Material and su pplies in inventory are reported as current assets of the proprietary funds and on the
government – wide financial statements at the lower of cost or market value . Governmental funds
inventory is stated at the lower of cost or market value and accounted for on the consumption basis. Fund
balance is reserved for the amount of the inventor y since inventories are not available for appropriation
and expenditure .
Expenditures made for services that will benefit periods beyond September 30, 2010 are recorded as
prepaid items in the government - wide financial statements. Accordingly a portion of fund balance has
been reserved to indicate that these funds are not available for appropriation.
4.
Restricted assets
Certain proceeds of the storm water enterprise fund revenue bonds, water and sewer enterprise fund
revenue bonds, and the parking system enterprise fund revenue bonds, as well as certain resources set
aside for their repayment, are classified as restricted assets on the statement of net assets because thei r
use is limited by applicable bond covenants. Certain proceeds in the convention center complex
enterprise fund are restricted as a result of an interlocal agreement between Miami - Dade County and the
City to fund the cost of capital improvements to the C onvention C enter and the Theatre of Performing Arts
(TOPA). Customer deposits are restricted for in the water and sewer fund, parking system fund,
convention center fund and other non - major enterprise funds.
5.
Capital Assets
Capital assets , which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges,
sidewalks, and similar items), are reported in the applicable governmental or business - type activities
columns in the government - wide financial statements and the proprietary fund statements. Capital assets
are defined by the City as assets with an initial, individual cost of $500 or more, and an estimated useful
life in excess of one year. Such assets are recorded at historical cost or at valuations, which approximate
cost. In the case of initial capitalization of general infrastructure assets, the City chose to include all such
items regardless of their acquisition date or amount. Gifts or contributions of property received are
recorded at their estimated fair market value at the time received by the City.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
the life are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. D uring the
construction phase of capital assets , interest of business - type activities is included as part of the
capitalized value of the assets constructed. Interest expense capitalized is offset by interest earned on
project specific unspe nt bond proceeds. The following is a schedule by fund, of interest expense and the
amounts included as part of the cost of capital assets under construction.
Interest Amount
ChargesCapitalized
Storm Water Utility $ 2,172,757 $ 1,918,187
Water and Sewer 5,603,516 3,341,001
Parking Systems 1,237,030 16,217
46
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
Property, plant, and equipment of the City, as well as the component units, is depreciated over the
estimated useful lives using the straight - line method. The estimated useful lives are as follows:
Buildings and Structures 30 - 60 years
Parking Lots 30 years
Improvements 10 - 60 years
Mains and Lines 60 years
Meters and Hydrants 10- 50 years
Machinery and Equipment 2- 20 years
In the governmental funds, capital assets are recorded as expenditure and no depreciation expense is
recorded.
6.
Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused vacation and sick pay
benefits. When terminated, an employee is paid for accumulated vacation leave and a percent of unused
sick leave hours, subject to certain limitations. All vacation and sick pay is accrued when earned in the
government - wide and proprietary fund financial statements. A liability for those amounts is reported in
governmental funds only if they have matured, as a result of employee resignations or retirements.
7.
Long - term obligations
In the government - wide financial statements, and proprietary fund types in the fund financial statements,
long - term debt and other long - term obligations are reported as liabilities in the applicable governmental
activities, business - type activities, or proprietary fund type statement of net assets. Bond premiums and
discounts, as well as issuance costs and deferred refinancing costs, are deferred and amortized over the
life of the bonds. Bonds payable are reported net of the applicable bond premium or di scount and
deferred financing costs . Bond issuance costs are reported as deferred charges and amortized over the
term of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as
other financing sources. Premiums received on debt issuances are reported as other financing sources
while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service expenditures. Debt principal
payments are reported as debt service expenditures.
8.
Unearned/Deferred Revenue
Resources that do not meet revenue recognition requirements (not earned) are recorded as unearned
revenue in the government - wide and the fund financial statements. In addition, amounts related to
government fund receivables that are measurable, but not available, are recorded as d eferred revenue in
the governmental fund financial statement.
9.
Net Assets / Fund Equity
In the fund financial statements, fund balance classifications are:
Nonspendable Fund Balance – amounts that cannot be spent because they are either (a) not in
s pendable form or (b) legally or contractually required to be maintained intact.
Restricted Fund Balance - amount s that are restricted to specific purposes when constraints
placed on the use of resources are either by (a) externally imposed by creditors (such as debt
covenants), grantors, contributors, or laws or regulations of other governments; or (b) imposed by
47
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
law through constitutional provisions or enabling legislations.
Committed Fund Balance - amounts that can only be used for specific purposes pursuant to
constraints imposed by formal action of the City Commission.
Assigned Fund Balance – amounts that are constrained by the government’s intent to be used for
specific purposes, but are neither restricted nor committed.
Unassigned Fund Balance – includes residual positive fund balance within the General Fund
which has not been classified within the other above mentioned categories. Unassigned fund
balance may also include negative balances for any governmental fund if expenditures exceed
amount s restricted , committed, or assigned for those specific purposes.
The government - wide and proprietary fund financial statements utilize a net asset presentation. Net
assets are categorized as follows:
a. Invested in Capital Assets (net of accumulated depr eciation and related debt) – is intended to
reflect the portion of net assets which are associated with capital assets, less outstanding capital
assets related debt, net of unspent bond and loan proceeds .
b. Restricted Net Assets – have third party (statutory , bond covenant or granting agency) limitations
on their use, or enabling legislation .
c. Unrestricted Net Assets – have no third party limitations on their use. While City management
may have categorized and segmented portions for various purposes, the City Commission has
the unrestricted authority to revisit or alter these managerial decisions.
10. Restricted Net Assets
Restricted Net Assets consist s of amounts restricted to comply with grant contracts and other externally
imposed constraints or by legislation that are legally enforceable. At September 30, 2010 , the
Government - wide statement of net assets reports $ 140,468,054 in restricted net assets . Of this amount,
$ 18,264,493 is restricted as a result of enabling legislation .
11. Use of estimates
The preparation of financial statements in conformity with U. S. generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. Actual results could differ from
management’s estimates.
12. Risk Management
The City is exposed to various risks of loss from civil liability to other parties (automobile liability, general
liability, police professional liability, public official liability); statutory workers' compensation benefits for
injured employees; and the theft or accidental damage to City prope rty (buildings and business contents).
The City established an internal service Risk Insurance Fund (the “Fund”) to account for its risk financing
activities. The Fund charge s the operating funds insurance premiums. The accrued liability for estimated
ins urance claims represents an estimate of the ultimate cost of settling claims arising prior to year end,
including claims incurred but not yet reported. The Fund pays for all claims and judgments made against
the City for accidental losses for which the Ci ty is self - insured, and the premium costs for insurance
policies to protect the City's property.
13. Employee Benefits Plans and Net Pension Asset/Obligation
The City provides separate defined benefit pension plans for general employees and for police and fire
department personnel . The City no longer offers benefits under a defined contribution pension plan
48
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
created in accordance with Internal Revenue Code Section 401(a) to new employees. However, current
employees are still participating in the plan. Th e City also offers an optional deferred compensation plan
created in accordance with Internal Revenue Code Section 457. The 457 Plan and the 401(a) Plan are not
included in the City’s financial statements.
14. Post Employment Benefits Other Than Pensio ns (OPEB)
Pursuant to Section 112.08, Florida Statutes, the City is required to permit eligible retirees and their
eligible dependents to participate in the City’s health insurance program at a cost to the retirees that is no
greater than the cost at which coverage is available for active employees. The City has a single employer
OPEB plan with benefits based on age and date of employment.
15. Health Self Insurance
Pursuant to City Code Chapter 78, Article II, Section s 78 through 81, the City provi de s for employees
health care coverage with the cost of such coverage shared between the employee and the City. In
addition, the collective bargaining agreements of the American Federation of State, County a nd Municipal
Employees (ASFCME), the Communicatio n Workers of America (CWA), and the Government
Supervisors Association (GSA) all require the City to provide group health care coverage to their
members. Currently the City provides its active, full time employees and retirees the opportunity to
purchase group health care coverage (medical and dental). The City’s group health plan excludes
coverage for members of the Fraternal Order of Police (FOP) and the International Association of Fire
Fighters (IAFF). FOP members are eligible to participate in the City’s dental plan. The City and the
employee/ retiree contribute to the cost of this coverage, at different rates, based on the plan elected.
The City established an internal service Health Insurance Fund (the “Fund”) to account for Medical and
Dental activities. Revenues from employee and City premiums are recorded in the Fund. The Fund pays
for all claims and the premium cost of “stop loss” insurance coverage. Both medical and dental claims are
administered by a third party service provider.
II. Stewardship, compliance, and accountability
A. Deficit net assets
At September 30, 2010 the City’s Internal Service Self Insurance Fund has a cumulative deficit of $ 6.8 million .
This is a net decrease of $ 2.2 million from the prior year. In the fiscal year, the self insurance funds received
$17.6 million in operating revenues and $. 3 million in interest income. It also had $1 5.7 million in operating
expenses which includes a reduction of $ 1.4 million in actuarially determined liabilities . It is the City’s intention
to continue to increase revenues and thus reduce the deficit in future years .
B. New accounting pronouncements
Effective October 1, 2009, the City adopted the provision of GASB Statement N o. 51
Accounting and Financial
This S tatement establishes accounting and financial reporting requirements
Reporting for Intangible Ass ets.
for intangible assets including easements, water rights, timber rights, patents, trademarks and computer
software. At September 30, 2010, the City reported air rights as intangible assets.
49
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
I II . Detailed notes on all funds
A. Deposits and Investments
City’s Pooled Portfolio Investments :
Interest Rate Risk Interest rate risk is the risk that change s in market interest rate s 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 rate s .
The City’s Investments are made based on prevailing market conditions at the time of the transact ion with the
intent to hold the instrument until maturity. If the yield of the portfolio can be improved by the sale of an
investment, prior to its maturity, with the reinvestment of the proceeds, then this provision is allowed. As a
means of limiting exposure to fair value losses, the City’s investment policy limits maturity of its investments to
seven (7) years or less.
As of September 30, 2010 , the City had the following investment s in its portfolio :
Investment Maturities (in years)
City's Fair Less
Investment Type Value Than 1 1-5
U.S. government agency $ 166,651,419 $ 40,564,560 $ 126,086,859
U.S. treasuries 104,265,821 91,925,993 12,339,828
Corporate bonds 15,312,930 10,151,725 5,161,205
Money Market Trust 30,572,876 30,572,876
Repurchase agreement 144,754,011 144,754,011
Total $ 461,557,057 $ 317,969,165 $ 143,587,892
50
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
Credit Risk This 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. State law limits investments in commercial paper
and corporate bonds rated in one of the top two r ating s issued by the N ationally R ecognized S tatistical R ating
O rganization (NRSROs). It is the City ’s policy to limit its exposure in these investment types to the top rating
issued by NRSROs. U.S. government agencies are only implicitly guaranteed by the U.S. G overnment. U.S.
Government Treasuries explicitly guaranteed by the U. S. Government are not considered to have credit risk
exposure.
As of September 30, 2010 the City’s investments were rated by Moody’s Investors Service and Standard &
Poor’s as follow:
Investment Standard & Fair
Type Issuer Poor's Moody's Value
Corporate Bonds:
GE Capital AA+ Aa2$ 10,151,725
Rabobank Nederland AAA Aaa 5,161,205
15,312,930
US Government Agencies:
FHLB AAA Aaa 66,316,849
FNMA AAA Aaa 50,209,346
FHLMC AAA Aaa 21,067,620
FFCB AAA Aaa 29,057,604
166,651,419
Money Market Trust:
U. S. Government AAA Aaa 26,400,018
Bank of America CD N/A N/A 4,000,000
Other N/A N/A 172,858
$ 30,572,876
Concentration of Credit Risk The City’s investment plan limits the amount that can be invested in any one
issuer as well as maximum portfolio allocation percentages. The investment policy allows for a maximum of
100% of the portfolio in Time D eposits, U.S. Treasury Bills, U .S. T reasury Notes and Money Market
Mutual/ T rust Funds , 50% in U .S. Government Agencies and Municipal Obligations, 25% in Fixed Income
Mutual Funds sponsored by the Florida League of Cities, 20% in Fi xed Term Repurchase Agreements,
Bankers Acceptances, Commercial Paper, Corporate Bond and Notes and E xternally M anaged F unds
requiring specific approval by the City Commission, 15% in M ortgage B acked S ecurities, and 10% in I nterest
R ate S waps .
51
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
The City’s cash and investments held at September 30, 2010 (including restricted cash and cash with paying
agent) are shown below:
% of
Carrying Amount Po rt folio
U.S. government agency $ 165,616,244 36.0 %
U.S. treasuries 104,157,831 22.6
Corporate bonds 15,170,587 3.3
Money market trust 30,572,876 6.6
Repurchase agreements 144,754,011 31.5
Total City Investments 460,271,549 % 100.0
City funds managed by others:
Money market 51,801
Cash with fiscal agent 250,000
Common stock 42,296
Demand deposit 117,142,621
Total cash and investments $ 577,758,267
Schedule of cash and investments by funds:
General $ 56,112,273
Resort Tax 6,052,706
Redevelopment Agency 12,902,996
Capital Projects 203,002,282
Storm Water 16,661,851
Water & Sewer 102,099,051
Parking 43,230,400
Convention Center Complex 17,747,731
Internal Service 29,360,042
Agency 6,698,130
OPEB Trust 10,683,612
Nonmajor Funds 73,207,193
Total cash and investments $ 577,758,267
Custodial Credit Risk For an investment, custodial credit risk is the risk that, 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 that are in
the possession of an outside party. For deposits, custodial credit risk is the risk that in the event of a financial
institutional failure, the City’s deposits may not be returned to it.
Deposits All deposits are held in banking institutions approved by the State Treasurer of the State of Florida
to hold public funds. Under the Flori da Statutes Chapter 280, “Florida Security for Public Deposits Act”, the
State Treasurer requires all qualified public depositories to deposit with the Treasurer or another banking
institution eligible collateral equal to 50% to 125% of the average daily b alance for each month of all public
deposits in excess of any applicable deposit insurance held. The percentage of eligible collateral (generally,
United States governmental and agency securities, state or municipality government debt, or corporate bonds)
to public deposits is dependent upon the depository’s financial history and its compliance with Chapter 280,
Florida Statues. In the event of a failure of a qualified public depository, the remaining public depositories
would be responsible for covering any resulting losses.
52
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
Securities pledged as collateral are held by a third party. Joint custody safekeeping receipts are held in the
name of the depository institution, but pledged to the City. The security can not be released, substituted or
sold without the City’s approval and release of the security.
Investments The City’s investment policy requires that securities be registered in the name of the City. All
safekeeping receipts for investment instruments are held in accounts in the City’s name and a ll securities are
registered in the City’s name.
Employee Retirement Systems Investments :
The City has adopted ordinances which govern the investment of funds for all of the Employee's Retirement
S ystems (the System). These investments include United S tates Treasury obligations, loans guaranteed by
government a gencies, Mutual and Money Market funds, Real Estate funds, General Obligation or R evenue
Bonds issued by states and municipalities, dividend paying stocks of domestic corporations, bonds, notes or
other interest bearing obligations of domestic corporations, and shares and accounts of savings and loan
associations.
Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the
fair value of an i nvestment. Generally, the longer the maturity of an investment the greater the sensitivity of its
fair value to change in the market interest rate.
Information about the sensitivity of fair value of the System’s i nvestments to market interest rate fluctuations is
provided in the table below that shows the distribution of the Systems investment by maturity at September 30,
2010 .
53
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
Firemen's Relief and Pension Fund:
Investment Maturities (in years)
Fair Less More
Investment Type Value Than 1 1-5 than 6
U.S. Government Securities $ 1,259,324 $ 405,620 $ $ 387,196 466,508
Corporate bonds and notes 3,253,028 304,587 1,525,986 1,422,455
Total $ 4,512,352 $ $ 710,207 1,913,182 $ 1,888,963
Policemen's Relief and Pension Fund:
Investment Maturities (in years)
Fair Less More
Investment Type Value Than 1 1-5 than 6
U.S. Government Securities $ $ 832,416 207,531 $ $ 506,416 118,469
Corporate bonds 1,434,175 101,691 952,236 380,248
Short-term obligations 540,416 540,416
Total $ 2,807,007 $ $ 849,638 1,458,652 $ 498,717
Credit Risk and Concentration of Credit Risk The System’s investment policy utilizes portfolio diversification
in order to control credit risk. The Systems have no limit imposed on fixed income securities issued directly by
the U.S. Government or any agency or instrumentality thereof.
The City pension fund for firefighte rs and police officers limits corporate debt securities (bonds, notes,
debentures at the time of purchase) to only the highest three categories of quality by any of the following listed
services: Moody’s, Standards and Poors or Fitch’s Manual. Any issue w hich is downgraded to investment
grade fourth category may be held. Any issue if downgraded below investment grade by two of the three of
the above mentioned ratings services must either be sold or specifically approved for retention by the Board.
Commer cial paper must be rated Moody’s P1 or Standard and Poors A1. Bonds issued by the State of Israel
may also be purchased. The City employee’s retirement system limits commercial paper to those rated only
in the highest category. Other fixed income secur ities that are classified “Investment Grade” in the top four
rating by Standard & Poor’s and Moody’s can also be purchased. The firefighters and police officers pension
funds follows state law, which limit investments in debt securities to those with the top three ratings issued by
a nationally recognized statistical rating organization.
54
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
Credit risk is generally measured by the assignment of a rating by a nationally recognized rating organization.
The following table discloses credit ratings by investment type at September 30, 2010 .
City Pension Fund for Firefighters and Police Officers:
Fair Percentage of
Value Portfolio
U.S. Government Securities $ 42,640,262 20.36 %
Quality rating of credit risk debt securities
AA+ 4,907,085 2.34
AA 6,842,280 3.27
AA- 10,519,512 5.02
A+ 39,959,348 19.08
A 67,482,036 32.23
A- 11,596,399 5.54
BBB+ 16,574,307 7.92
BBB 5,857,921 2.80
BB+ 3,024,057 1.44
Total credit risk debt securities 166,762,945 79.64
Total fixed income securities $ 209,403,207 % 100
Fireman's Relief and Pension Fund:
Fair Percentage of
Value Portfolio
U.S. Government Securities $ 1,259,324 % 27.91
Quality rating of credit risk debt securities
Aa2 210,325 4.66
Aa3 114,536 2.54
BAA1 162,513 3.60
A1 804,704 17.83
A2 1,621,770 35.94
A3 339,180 7.52
Total credit risk debt securities 3,253,028 72.09
Total fixed income securities $ 4,512,352 % 100
55
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
Miami Beach Employees' Retirement Plan:
Fair Percentage of
Value Portfolio
U.S. Government Securities $ 17,352,665 15.54 %
Quality rating of credit risk debt securities
AAA 1,865,262 1.67
AA+ 42,759,670 38.29
AA 28,521,579 25.54
AA- 1,896,749 1.70
A+ 1,564,618 1.40
A 5,613,289 5.03
A- 1,877,850 1.68
BBB+ 3,327,916 2.98
BBB 4,345,812 3.89
BBB- 2,547,150 2.28
Total credit risk debt securities 94,319,895 84.46
Total fixed income securities $ 111,672,560 % 100
Policeman's Relief and Pension Fund:
Fair Percentage of
Value Portfolio
U.S. Government Securities $ 832,416 36.73 %
Quality rating of credit risk debt securities
AA 120,162 5.30
A+ 326,838 14.42
A 822,786 36.30
A- 164,389 7.25
Total credit risk debt securities 1,434,175 63.27
Total fixed income securities $ 2,266,591 % 100
56
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
As of September 30, 2010 the System had the following cash and investment s in its portfolio :
Fair
Value
Short term investments $ 540,416
U.S. government securities 62,084,667
Corporate bonds and notes 195,651,437
Common stock and index funds 276,347,169
Aggregated bond funds 70,118,606
Aggregated equity funds 293,180,346
Money market funds 4,970,326
Real Estate funds 15,611,166
Mutual funds 12,460,565
Cash 6,373,347
Total cash and investments $ 937,338,045
Investments are reported at fair value. The fair value of quoted investments is based on the closing sales
price or bid price as reported by recognized security exchanges. Fair value for stocks is determined by using
the closing price listed on the national securities exchanges a t September 30. 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. Commercia l paper, time deposits and short - term investment pools are valued at cost
which approximates market.
Custodial Credit Risk For an investment, custodial credit risk is the risk that, in the event of the failure of the
counterparty, the System will not be able to recover the value of its investments or collateral securities that are
in the possession of an outside party. For deposits, custodial credit risk is the risk that in the event of a
financial institutional failure, the System ’s deposits may not be returned to it. Consistent with the System’ s
investment policy, the investment s are held by the System’s custodial bank and registered in the System’s
name. All System’s deposits are insured and or collateralized by a financial institution separate from the
System’s depository financial institution.
Discretely Presented Component Units
Component unit ’ s cash and investment in the amount of $ 2,913,525 consists of demand deposit and money
market deposit accounts. These accounts are not subjec ted to interest rate risks, credit risks or concentration
of credit risks. All deposits are held in banking institutions approved by the State Treasurer of the State of
Florida to hold public funds. Under the Florida Statutes Chapter 280, “Florida Security for Public Deposits
Act”, the State Treasurer requires all qualified public depositories to deposit with the Treasurer or another
banking institution eligible collateral equal to 50% to 125% of the average daily balance for each month of all
public depo sits in excess of any applicable deposit insurance held. The percentage of eligible collateral
(generally, United States governmental and agency securities, state or municipality government debt, or
corporate bonds) to public deposits is dependent upon the depository’s financial history and its compliance
with Chapter 280, Florida Statues. In the event of a failure of a qualified public depository, the remaining
public depositories would be responsible for covering any resulting losses.
Securities pledge d as collateral are held by a third party. Joint custody safekeeping receipts are held in the
name of the depository institution, but pledged to the component unit. The security can not be released,
substituted or sold without the component unit’s approval and release of the security.
57
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
B. Receivables
Receivables a t September 30, 2010 for the City’s individual major funds and nonmajor, internal service, and
fiduciary funds in the aggregate, including the applicable allowances for uncollectible account s, are as follows:
Governmental Activities
ResortCapitalInternalNonmajor
General Tax ProjectsService Funds Total
Receivables:
Accounts $ 6,639,339 $ 2,747,492 $ 49,326 $ 161,659 $ 1,468,781 $ 11,066,597
Special Assessments 934,760 934,760
Taxes 11,140,665 540,499 11,681,164
Gross receivables 17,780,004 3,682,252 49,326 161,659 2,009,280 23,682,521
Less: allowance
for uncollectible
accounts (2,933,032) (16,634) (846,599) (3,796,265)
Net total
receivables $ 14,846,972 $ 3,682,252 $ 49,326 $ 145,025 $ 1,162,681 $ 19,886,256
Business-type Activities
Water Convention
Storm and CenterNonmajor
WaterSewer Parking ComplexFunds Total
Receivables:
Accounts $ 1,321,572 $ 7,011,449 $ 4,040,541 $ 1,909,567 $ 1,948,625 $ 16,231,754
Gross receivables 1,321,572 7,011,449 4,040,541 1,909,567 1,948,625 16,231,754
Less: allowance
for uncollectible
accounts (589,697) (1,577,896) (14,972) (116,930) (970,055) (3,269,550)
Net total
receivables $ 731,875 $ 5,433,553 $ 4,025,569 $ 1,792,637 $ 978,570 $ 12,962,204
Property values are assessed (levied) by the Miami - Dade County Property Assessor as of January 1 of each
year, at which time taxes become an enforceable lien on property. State of Florida Amendment No. 10 to the
Florida Constitution known as "Save our Homes" limits assessment increases on homestead property to the
less er of 3% or the consumer price index. Tax bills are mailed in October and are payable upon receipt with
discounts at the rate of 4% if paid in November, decreasing by 1% per month with no discount available if paid
in the month of March. Taxes become delinquent on April 1 of the year following the year of assessment and
State law provides for enforcement of collection of personal property taxes by seizure of the property or by the
sale of the property or by the sale of interest bearing tax certificates to satisfy unpaid property taxes. The
procedures result in the collection of essentially all taxes prior to June 30 of th e year following the year of
assessment.
58
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
C. Capital assets
Capital asset activit ies for the year ended September 30, 2010 were as follows:
Primary Government
Governmental activities:
BeginningAdjustments/Adjustments/Ending
BalanceIncreasesDecreasesBalance
Captial assets, not being depreciated:
Land $ 45,832,216 $ $ $ 45,832,216
Intangible assets 4,181,941 4,181,941
Construction work-in-progress 264,948,021 53,915,101 29,854,930 289,008,192
Total capital assets, not being
depreciated 310,780,237 58,097,042 29,854,930 339,022,349
Captial assets, being depreciated:
Building 91,841,185 14,983,462 106,824,647
Permanent improvements 165,349,490 201,904 165,551,394
Furniture & fixtures 2,751,254 175,866 2,927,120
Equipment 72,472,031 4,387,838 2,222,183 74,637,686
Infrastructure 120,719,655 120,719,655
Total capital assets, being
depreciated 453,133,615 19,749,070 2,222,183 470,660,502
Less: accumulated depreciation for:
Building 43,640,579 1,871,166 45,511,745
Permanent improvements 71,519,898 3,539,014 75,058,912
Furniture & fixtures 2,043,902 260,540 2,304,442
Equipment 51,400,484 7,703,173 2,175,781 56,927,876
Infrastructure 90,778,652 2,332,281 93,110,933
Total accumulated depreciation 259,383,515 15,706,174 2,175,781 272,913,908
Total capital assets, being
depreciated, net 193,750,100 4,042,896 46,402 197,746,594
Governmental activities
captial assets, net $ 504,530,337 $ 62,139,938 $ 29,901,332 $ 536,768,943
59
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
Primary Government
Business-type activities:
Beginning Adjustments/Ending
BalanceIncreasesDecreasesBalance
Captial assets, not being depreciated:
Land $ 24,274,408 $ $ $ 24,274,408
Intangible assets 4,318,059 4,318,059
Construction work-in-progress 198,434,887 21,174,208 12,846,012 206,763,083
Total capital assets, not being
depreciated 222,709,295 25,492,267 12,846,012 235,355,550
Captial assets, being depreciated:
Main & lines 95,749,155 2,291,958 98,041,113
Building & structure 219,026,776 22,983,190 2,642,083 239,367,883
Meters & hydrants 14,900,000 166,415 15,066,415
Furniture, equipment & vehicles 67,211,393 1,439,371 2,078,990 66,571,774
Improvements other than building 11,175,837 11,175,837
Total capital assets, being
depreciated 408,063,161 26,880,934 4,721,073 430,223,022
Less: accumulated depreciation for:
Main & lines 24,281,324 1,703,336 25,984,660
Building & structure 89,225,196 5,526,474 524,450 94,227,220
Meters & hydrants 9,170,897 292,833 9,463,730
Furniture, equipment & vehicles 26,026,425 4,173,041 2,005,479 28,193,987
Improvements other than building 4,634,588 4,634,588
Total accumulated depreciation 153,338,430 11,695,684 2,529,929 162,504,185
Total capital assets, being
depreciated, net 254,724,731 15,185,250 2,191,144 267,718,837
Business-type activities, combined
captial assets, net $ 477,434,026 $ 40,677,517 $ 15,037,156 $ 503,074,387
60
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government $ 8,308,947
Public safety 1,446,610
Physical environment 209,942
Transportation 3,744,448
Economic environment 76,935
Culture and recreation 1,919,292
Total depreciation expense - governmental activities $ 15,706,174
Business-type activities
Storm Water $ 241,484
Water & Sewer 3,744,090
Parking Systems 1,809,720
Convention Center Complex 5,021,045
Nonmajor enterprise 787,232
Total depreciation expense - business-type activities $ 11,603,571
Accumulated Depreciation – For governmental activities, the increase in accumulated depreciation includes
$ 6,911,507 of depreciation expenses for internal services.
D. Construction and other commitments
At September 30, 20 10 th e City funds ha d active construction projects which includes, but is not limited to
water; waste water and storm water improvements; as well as a variety of streetscape enhancement
projects. The following table set s forth these commitments by fund:
Capital Projects $ 43,116,020
Storm Water Utility 1,281,536
Water & Sewer 3,838,595
Parking Systems 1,110,158
Convention Center Complex 2,354,642
Non-major Enterprise 140,187
$ 51,841,138
The City funds had the following encumbrance commitments at September 30, 20 10
General $ 608,435
Capital Project 43,116,020
Other Governmental 3,330,662
$ 47,055,117
61
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
E. Interfund receivables, payables and transfers
Interfund balances at September 30, 2010 consist of the following:
Due To
Redeve- Other
Due ResortlopmentCapitalGovern-ParkingOtherInternal
From GeneralTaxAgencyProjectsmental Systems EnterpriseService Total
General $ $ $ 255,102 $ $ 406,925 $ 127,583 $ $ 13,178 $ 7,001 809,789
Redevelopment
Agency 4,481 559,158 12,745 1,396 996 578,776
Capital Projects 219 219
Other
Governmental 2,130 2,130
Water & Sewer 4,155 4,155
Parking 6,955 6,955
Other
Enterprise 79,043 24,004 103,047
Internal
Service 403,513 111,367 6,610 22,107 508,147 1,051,744
$ 407,994 $ $ 559,158 445,512 $ $ 411,299 $ 136,323 $ 36,749 $ 43,636 $ 516,144 2,556,815
The outstanding balances between fund result mainly from the time lag between the dates that (1) interfund
goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded i n the
accounting system, and (3) payment between funds are made. All outstanding balances will be paid within the
subsequent fiscal year.
i nterfund transfers for the year ended September 30, 20 10 consisted of the following:
62
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
Tr ansfers are used to (1) move revenues from the fund with collection authorization to the debt service fund as
debt service principal and interest payments become due (2) move restricted amounts from borrowing s to the
debt service fund to establish mandatory reserve accounts, and (3) move unrestricted general revenues to
finance various programs that the government must account for in other funds in accordance with budgetary
authorizations. Major transfers for the year were:
The General Fund also transferr ed $2 million for capital renewal and replacement , $4.9 million for debt service
payment and $ .8 million transferred to the Information and Technology Fund.
$2 4.4 million was t ransferred from the Resort Tax F und to the General Fund to support South Beach, Middle
Beach and North Beach Services, various culture and recreation events, and tourism related citywide
expenditures . The Resort Tax Fund also transferred $3. 8 million to the Redevelopment Agency Fund for debt
service payments and $ 2.5 million was tr ansferred to Capital Projects Fund to fund various approved capital
projects.
$ 13.2 million was transferred f rom the Redevelopment Agency F und to the Capital Projects F und to finance
various projects in the RDA City Center District , along with $10.1 milli on t o Other Governmental Funds for debt
service payments.
There was an additional capital transfer of $10.5 million from governmental activities for capital assets to the
Parking System Fund relating to the City’s Municipal Multipurpose Parking Garage.
F. Leases
1. Operating Leases
The City serves as the lessor for tenants leasing various parking facilities , marina, and office s and retail
facilities. The tenant leases are considered operating leases, which expire at various dates through fiscal
year 2053 . F uture minimum lease receivables under the operating leases at September 30, 20 10 , are as
follows:
Business-typeGovernmental
Operating Oper ating
September 30 Leases Leases
2011 $ 1,467,856 $ 2,439,434
2012 1,467, 856 2,526,255
2013 1,416,613 2,435,356
2014 1,301,546 2,358,565
2015 1,108,631 2,378,397
2016 and thereafter 26,255,413 26,220,814
$ 33,017,915 $ 38,358,821
63
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
The following schedule provides an analysis of the City’s investment in property under operating
leases and property held for lease by major classes as of September 30, 20 10 :
Parking facilities $ 3,057,742
Rec reational facilities 12,582,457
Retail space 49,348,317
Marina 5,654,752
70,643,268
Less: Accumulated depreciation (36,058,874)
Net book value of leased assets $ 34,584,394
G. Long - Term debt
1. General Obligation Bonds – Governmental Activities
The City issues general obligation bonds to provide funds for the acquisition, construction and
im provements of major capital facilities. General obligation bonds have been issued for governmental
activities. The amount of outstanding general obligation bonds issued i s $ 70,985,000 . General obligation
bonds are direct obligations and pledge the full faith and credit of the City. These bonds are generally
issued as 20 - year serial bonds.
The General Obligation Bonds outstanding at September 30, 2010 co nsist of the following:
64
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
Annual debt service requirements to maturity for general obligation bonds are as follows:
General Obligation Bonds
Fiscal Year Governmental Activities
Ending
September 30 Principal Interest Total
2011 $ 2,705,000 $ 3,312,847 $ 6,017,847
2012 2,815,000 3,196,357 6,011,357
2013 2,955,000 3,049,837 6,004,837
2014 3,090,000 2,915,762 6,005,762
2015 3,220,000 2,773,822 5,993,822
2016-2020 18,780,000 11,149,294 29,929,294
2021-2025 14,035,000 6,782,834 20,817,834
2026-2030 13,650,000 4,066,131 17,716,131
2031-2033 9,735,000 888,750 10,623,750
70,985,000 38,135,634 109,120,634
Plus: Unamortized
Bond Premium 282,384 282,384
$ 71,267,384 $ 38,135,634 $ 109,403,018
The principal payments of the $15,910,000 Gulf Breeze VDRS Series 1995B are to be repaid in thirteen
annual installments commencing December 1, 2001 with interest paid se mi - annually. The principal
payments of the $14,090,000 Gulf Breeze VDRS Series 1985E are to be repaid in seven annual
installments commencing December 1, 2014 with interest paid semi - annually. The funds were used to
expand, renovate and improve fire stations and related facilities; improve recreation and maintenance
facilities for parks and beaches; and, improve neighborhood infrastructure and related facilities.
On July 22, 2003, the City issued General Obligation Bonds, Series 2003, in the amount of $62 ,465,000.
T hese bonds were issued to provide funds to pay the cost of improving neighborhood infrastructure in the
City, consisting of streetscape and traffic calming measures, shoreline stabilization and related
maintenance facilities, and Fir e S afety P ro jects and the Parks and B eaches projects. The Bonds will be
repaid solely from ad - valorem taxes assessed, levied and collected.
2. Special Obligation Bonds – Governmental Activities
At September 30, 20 10 the outstanding principal of special obligation bond issues and repayment sources
are as follows:
65
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
During fiscal 1994, the City executed a loan agreement with The Sunshine State Governmental Financing
Commission to borrow $30,000,000 on a variable rate note, principal to be repaid in twenty annual
installments commencing September 1, 1995 through September 1, 201 4 . Interest is paid monthly at a
variable rate . Interest at September 30, 200 9 was 1.10 %. On August 1, 2001 the City executed a loan
agreement to repay a portion of the o utstanding principal for this loan of $14,977,000. The 1994 Sunshine
State VRDS bonds were paid off during fiscal year 2010.
On September 1, 2005 the City issued $53,030,000 in taxable Series 2005 Special Obligation Bonds for
the purposes of, together with other legally available funds of the City, refunding the City’s outstanding
Taxable Special Obligation Bonds( Pension Funding Project), Series 1994 maturing September 1, 2015
and September 1, 2021, making the required payment with respect to a Hedge Agreement and paying the
costs of issuing the Series 2005 and refunding the Refunded Bonds, including the premiums for the Bond
Insurance Policy and Reserve Account Surety Bond. The Series 2005 bonds were issued with interest
rate s of 4.24 % to 5.23 % payable semiannually on March 1 and September 1.
On July 1, 1998, the Agency issued $29,105,000 (Series 1998A) and $9,135,000 (Series 1998B) in tax -
increment bonds. These bonds are secured by a lien upon and pledge of the pledged funds, which
include (a) the net trust fund revenue received by the Agency from the City Center/Historic Convention
Village Redevelopment and Revitalization Area, (b) the portion of the proceeds for the City’s municipal
resort tax levied and collected by the City and received by the trustee, and (c) moneys and investments in
the funds and accounts created under the resolution. The Series 1998A bonds were issued with interest
rates of 6.70% to 7.00% payable semiannually on each June 1 and December 1, and will mature serially
through December 1, 2020. The Series 1998B bonds were paid off on December 1, 2008. The bonds are
subject to a trust indenture, which requires that annual debt service requirements be fully funded upon
receipt of trust fund revenue and supplemental revenue, and that any shortage shall be funded based on
the su pplemental revenue resolution. The Series 1998A T ax - increment bonds were partially
refunded/defeased by the issuance of the Series 2005A and 2005B tax increment revenue refunding
bonds on September 22, 2005. T he Series 1998A bonds had a remaining outstanding principle balance of
$10,000,000 at September 30, 20 10 .
On September 22, 2005, the Agency issued $51,440,000 (Series 2005A) and $29,330,000 (Series 2005B)
in tax - increment bonds. These bonds are secured b y a lien upon and pledge of the pledged funds, which
include (a) the net trust fund revenue received by the Agency from the Redevelopment Area, (b) the
portion of the proceeds for the City’s municipal resort tax levied and collected by the City and received by
the trustee, and (c) moneys and investments in the funds and accounts created under the resolution. The
Series 2005A bonds were issued with interest rates of 4.31% to 5.22% payable semiannually on each
June 1 and December 1, and will mature serially through December 1, 2022. The Series 2005B bonds
were issued with interest rates of 3.25% to 5.00% payable semiannually on each June 1 and December 1,
and will mature serially through December 1, 2022. The bonds are subject to a trust indenture, which
requ ires that annual debt service requirements be fully funded upon receipt of trust fund revenue and
supplemental revenue, and that any shortage shall be funded based on the supplemental revenue
resolution. At September 30, 20 10 , $ 18,920,000 of the Agency’s bonds outstanding are considered
defeased .
On August 1, 2001, the City executed three loan agreements with the City of Gulf Breeze, Florida, Local
Government Pool to borrow $47,145,000 on fixed rate notes. The Gulf Breeze Series B, in the amount of
$2,20 0,000, principal is to be repaid in fourteen annual installments commencing December 1, 2002 with
interest paid semi - annually. The Gulf Breeze Series C, in the amount of $22,445,000, principal is to be
repaid in fourteen annual installments commencing Dece mber 1, 2002 with interest paid semi - annually.
The Gulf Breeze Series E, in the amount of $22,500,000, principal is to be repaid in nineteen annual
installments commencing December 1, 2002 with interest paid semi - annually. $17,115,000 was used to
repay the outstanding balance of the City Gulf Breeze, Florida Local Government Loan Program Series
1985 C variable rate notes. $14,977,000 was used to repay a portion of the outstanding principal from the
Sunshine State Loan. The remaining funds will be used for the renovation and improvement of two City
owned golf courses and their related facilities. A portion of the Gulf breeze 1985 C outstanding debt
66
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
relates to the construction of a Parking Garage. The Parking Enterprise Fund includes an outstanding
amount of $ 4,086,934 that relates to this debt.
On August 15, 2007, the City defeased the Resort Tax Refunding Bonds, Series 1996. As a result, the
outstanding balance of $3,060,000 was removed from the governmental activities column of the statement
of net assets. At September 30, 20 10 , $1,470,000 is still considered defeased.
At September 30, 20 10 debt service requirements to maturity for special obligation bonds are as follows:
Debt Service Requirements
Fiscal Year Special Obligation Bonds
Ending
September 30 Principal Interest Total
2011 $ 9,914,124 $ 7,011,196 $ 16,925,320
2012 10,370,542 6,539,233 16,909,775
2013 11,072,890 6,034,129 17,107,019
2014 11,615,238 5,492,687 17,107,925
2015 12,175,772 4,930,957 17,106,729
2016-2020 60,549,492 15,442,514 75,992,006
2021-2023 26,085,000 1,961,364 28,046,364
141,783,058 47,412,080 189,195,138
Plus: Net unamortized
Bond Premium 911,924 911,924
$ 142,694,982 $ 47,412,080 $ 190,107,062
The City has pledged net revenues received by th e Redevelopment Agency from the City Center/ Historic
Convention Village Redevelopment and Revitalization Area of the City and proceeds from the municipal
resort tax levied and collected by the City for the 1998 and 2005 Series Tax Increment Revenue
Refund ing Bonds . For the fiscal year ended September 30, 20 10 , debt service on the tax increment
bonds was $8,3 93,267 and tax increment revenues totaled $3 0,815,584 . Remaining outstanding principal
and interest is $1 09,405,595 .
3. Revenue bonds – Business - Type Activities
a. Parking Fund
The Parking Revenue Fund had the following changes in its current and Long - Term debt outstanding
for the year ended September 30, 20 10 :
Balance Debt Balance
Indebtedness 10/01/2009 Repaid 09/30/2010
Bonds $ 25,009,228 $ 1,727,294 $ 23,281,934
$ 25,009,228 $ 1,727,294 $ 23,281,934
67
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
Parking Revenue Fund indebtedness at September 30, 20 10 , is comprised of the following issued
indebtedness:
$21,000,000 1997 Parking Revenue Bonds due in annual installments
through 2022: interest at 4.00% - 5.125% $ 19,195,000
$ 8,143,046 Series 2001 (1985C) Gulf Breeze Loan Pool due in annual installments
through 2015: interest at 3.875% - 4.75% $ 4,086,934
At September 30, 20 10 , none of the bonds outstanding are considered defeased.
The aggregate maturities of Long - Term Debt at September 30, 20 10 , are as follows:
Fiscal Year Bonded Debt
Ending
September 30 Principal Interest Total
2011 $ 1,810,876 $ 1,158,622 $ 2,969,498
2012 1,894,458 1,069,761 2,964,219
2013 1,987,110 974,223 2,961,333
2014 2,089,762 874,050 2,963,812
2015 2,189,228 769,612 2,958,840
2016-2020 9,270,500 2,404,638 11,675,138
2021-2022 4,040,000 313,138 4,353,138
23,281,934 7,564,044 30,845,978
Less: Unamortized
Bond Discount 321,574 321,574
$ 22,960,360 $ 7,564,044 $ 30,524,404
The Series 1997 revenue bonds are payable from and secured by a lien on and pledge of net revenues
derived from the operation of the City’s parking system. The total principal and interest remaining to be
paid on the bonds is $3 0 ,8 45,978 . Pri ncipal and interest paid for the current year and total customer net
revenues were $2,9 67,978 and $ 6, 630 , 548 respectively.
b. Water and Sewer Fund
The Water & Sewer Fund issued $54,310,000 in Water and Sewer Revenue Bonds, Series 200 0 , on
September 1, 2 00 0 . The bonds will be repaid solely from pledged revenues of the Water and Sewer
system. They are registered transcripts and insured. The bonds were issued to construct various
improvements and extensions to the Water and Sewer utility. This bond was partially refunded by the
issuance of the Water and Sewer Revenue Refunding Bonds, Taxable Series 2009J - 1A and 2009J - 1B.
The portion of the Series 2000 bonds refunded was $23,480,000.
On May 1, 2006, the City obtained four loans from the City of Gulf Breez e, Florida Local Government Loan
Pool Program. The City of Miami Beach intends to use a loan from the City of Gulf Breeze, Florida, Series
1985B Bond proceeds and a loan from the City of Gulf Breeze, Florida, Series 1985C proceeds to refund
all of the City of Miami Beach’s outstanding Water & Sewer Revenue Bonds, Series 1995. In addition, the
City intends to use a loan from the City of Gulf Breeze, Florida, Series 1985B Bond proceeds and a loan
of the City of Gulf Breeze, Florida, Series 1985E Bond proceeds to pay the cost of certain improvements
to its water and sewer utility. As evidence of such loans, the City’s Water and Sewer Fund issued
$8,500,000 in Water and Sewer Revenue Refunding Bonds, Taxable Series 2006B - 1, $18,300,000 in
68
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
Water and Sewer Revenue Bonds, Taxable Series 2006B - 2, $27,500,000 in Water and Sewer Revenue
Refunding Bonds, Taxable Series, 2006C, and $5,700 , 000 in Water and Sewer Revenue Bonds, Taxable
Series 2006E. The bonds will be repaid solely from pledged revenues of the Water and Se wer system.
They are registered transcripts and insured. The Refunding bonds were issued to refund the Water and
Sewer Revenue Bonds, Series 1995, and the other two bonds were issued to construct various
improvements and extensions to the Water and Sewer utility.
On February 17, 2010, the City obtained three loans from the City of Gulf Breeze, Florida Local
Government Loan Pool Program. The City intends to use one of the loans from the City of Gulf Breeze,
Florida, Series 1985J proceeds to pay the cost of certain improvements to its water and sewer utility. As
evidence of such loans, the City’s Water and Sewer Fund issued $13,590,000 in Water and Sewer
Revenue Refunding Bonds, Series 2009J - 1A, $10,000,000 in Water and Sewer Revenue Refunding
Bonds, Taxable Series 2009J - 1B, and $30,000,000 in Water and Sewer Revenue Bonds, Taxable Series
2009J - 1C. The bonds will be repaid solely from pledged revenues of the Water and Sewer system. They
are registered transcripts and insured. The two refunding bonds wer e issued to partially refund the Water
and Sewer Revenue Bonds, Series 2000, and the other bond was issued to construct various
improvements and extensions to the Water and Sewer utility.
Indebtedness of the Water and Sewer Fund at September 30, 20 10 is as follows:
$ 54,310,000 2000 Revenue Bonds due in annual installments
through 2030: Interest at 5.00% - 5.75% $ 30,830,000
$ 8,500,000 2006B-1 Water & Sewer Revenue Refunding Bonds
Gulf Breeze Loan Series 1985B due in annual installments
through 2015: Interest at 4.25% - 4.50% $ 8,500,000
$ 18,300,000 2006B-2 Water & Sewer Revenue Bonds
Gulf Breeze Loan Series 1985B due in annual installments
through 2019: Interest at 4.40% - 4.50% $ 18,300,000
$ 27,500,000 2006C Water & Sewer Revenue Refunding Bonds
Gulf Breeze Loan Series 1985C due in annual installments
through 2013: Interest at 4.00% - 4.50% $ 13,220,000
$ 5,700,000 2006E Water & Sewer Revenue Bonds
Gulf Breeze Loan Series 1985E due in annual installments
through 2020: Interest at 5.00% $ 5,700,000
$ 13,590,000 2009J-1A Water & Sewer Revenue Refunding Bonds
Gulf Breeze Loan Series 1985J due in annual installments
through 2020: Interest at 4.10% - 4.50% $ 13,590,000
$ 10,000,000 2009J-1B Water & Sewer Revenue Refunding Bonds
Gulf Breeze Loan Series 1985J due in annual installments
through 2023: Interest at 4.82% - 5.00% $ 10,000,000
$ 30,000,000 2009J-1C Water & Sewer Revenue Bonds
Gulf Breeze Loan Series 1985J due in annual installments
through 2039: Interest at 5.00% $ 30,000,000
At September 30, 2010, none of the bonds outstanding are considered defeased.
69
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
The aggregate maturities of Long - term debt as of September 30, 2010 are as follows:
Fiscal Year Bonded Debt
Ending
September 30 Principal Interest Total
2011 $ 3,930,000 $ 5,961,735 $ 9,891,735
2012 4,100,000 5,801,135 9,901,135
2013 4,285,000 5,633,435 9,918,435
2014 3,185,000 5,476,073 8,661,073
2015 4,935,000 5,299,541 10,234,541
2016-2020 31,215,000 22,882,651 54,097,651
2021-2025 25,320,000 16,826,613 42,146,613
2026-2030 23,170,000 11,158,275 34,328,275
2031-2035 11,725,000 6,363,375 18,088,375
2036-2040 18,275,000 2,373,625 20,648,625
130,140,000 87,776,458 217,916,458
Less:
Unamortized Discount 192,664 192,664
Deferred refunding cost 510,671 510,671
$ 129,436,665 $ 87,776,458 $ 217,213,123
The Series 2000, 200 6 and 200 9 revenue bonds are payable from and secured by a lien on and pledge of
net revenues of the water and s ewer u tility and to the exten t provided in the bond resolution, from i mpact
f ees, and from all moneys held in the f unds and accounts established under the b ond r esolution. The
total principal and interest remaining to be paid on the bonds is $ 217,916,458 . Principal and interest paid
for the current year and total customer net revenues were $ 8,191,019 and $ 20 , 298,787 respectively.
70
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
c. Storm Water
The Storm Water Fund issued $52,170,000 in Storm Water Revenue Bonds, Series 2000, on November
7, 2000. The bonds will be repaid solely from pledged revenues of the Storm Water System. They are
registered transcripts and insur ed. The bonds were issued to construct certain improvements to the
Storm Water utility. This bond was partially refunded by the issuance of the Storm Water Revenue
Refunding Bonds, Taxable Series 2009J - 2. The portion of the Series 2000 bonds that were ref unded was
$16,055,000.
On February 17, 2010, the City obtained a loan from the City of Gulf Breeze, Florida Local Government
Loan Pool Program. The City intends to use this loan from the City of Gulf Breeze, Florida, Series 1985J
proceeds to partially refund the Series 2000 bonds. As evidence of such loan, the City’s Storm Water
Fund issued $16,185,000 in Storm Water Revenue Refunding Bonds, Series 2009J - 2. The bonds will be
repaid solely from pledged revenues of the Storm Water system. They are registered transcripts and
insured.
Indebtedness of the Storm Water Fund at September 30, 20 10 is as follows:
$52,170,000 2000 Storm Water Revenue Bonds Due in annual installments through 2030:
Interest at 4.75 %- 5.375 % $ 27,105,000
$16,185,000 2009J - 2 Storm Water Revenue Refunding Bonds Due in annual installments
through 2020: Interest at 2.00% - 4.50% $16,185,000
The aggregate maturities of Long - term debt a t September 30, 20 10 are as follows:
Fiscal Year Bonded Debt
Ending
September 30 Principal Interest Total
2011 $ $ 2,042,670 $ 2,042,670
2012 1,400,000 2,028,670 3,428,670
2013 1,430,000 1,996,080 3,426,080
2014 1,470,000 1,955,808 3,425,808
2015 1,510,000 1,908,832 3,418,832
2016-2020 8,460,000 8,587,752 17,047,752
2021-2025 13,725,000 6,077,219 19,802,219
2026-2030 15,295,000 2,552,856 17,847,856
43,290,000 27,149,887 70,439,887
Less:
Unamortized Discount 222,109 222,109
Deferred refunding cost 423,229 423,229
$ 42,644,662 $ 27,149,887 $ 69,794,549
The Series 2000 b onds and the Series 2009J - 2 are payable from and secured by a lien on and pledge
of n et r evenues of the s tormwater u tility and from all moneys held in the f unds and accounts
established under the Bond Resolution. The total principal and interest remaining to be paid on the
bonds is $7 0,439,887 . Principal and interest paid for the current year and total customer net
revenues were $ 2,862,145 a nd $ 7,871,091 respectively.
71
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
4. L oans
On February 20, 2008, the City entered into a new loan agreement which allows the City to be reimbursed
for the purchase of machinery and equipment up to a maximum of $37,500,000. The interest rate s on this
loan agreement range from 2. 1% to 4.5%. At Septe mber 30, 20 10 , the City was indebted for $10,169,691 .
The aggregate maturities of loans at September 30, 20 10 are as follows:
Ending
September 30 PrincipalInterest Total
2011 $ 2,551,384 $ 310,721 $ 2,862,105
2012 2,154,775 230,673 2,385,448
2013 2,065,897 159,714 2,225,611
2014 1,485,407 97,283 1,582,690
2015 1,125,980 52,560 1,178,540
2016-2019 786,248 45,947 832,195
$ 10,169,691 $ 896,898 $ 11,066,589
The above debt has been recorded in the following funds:
Internal Service $ 8,949,238
Stormwater 227,458
Water & Sewer 260,457
Parking 198,071
Other Enterprise 534,467
$ 10,169,691
5. Other Obligations
On September 27, 2000, the City was granted a $4,000,000 Section 108 U. S. Housing and Urban
Development loan. The City has drawn $4 ,0 00,000 of this loan for improvements to neighborhood
S treets, North Shore Park and Youth Center. A t September 30, 20 10 , the outstanding balance on the
amount drawn was $ 1,050,000 . The interest rate on this loan is a variable rate (LIBOR plus 20 basis
points or .2%) Principal payments are made annually on the first of August and interest payments are
made quarterly. This loan matures on August 1, 20 15 .
On May 25, 2010, the City entered into an equ ipment lease purchase financing agreement with a financial
institution for the construction/purchase of energy saving equipment in the aggregate principal amount of
$13,279,659. At September 30, 2010, the outstanding balance on this loan was $13,465,658. T he interest
rate on this loan is a fixed 4.18%. The first principal and interest payment is due on May 25, 2012.
Interest accruing up to May 25, 2012 is added to the principal amount. The total interest that is
compounded from May 25, 2010 through April 25, 2012 and that will be added to the principal balance is
$1,105,700. Of this interest amount, only $185,999 was added to the principal balance as of September
30, 2010, and thus, leaving only $919,701 to added to the principal balance in fiscal years 2011 and 2012.
Principal and interest payment will be made monthly commencing May 25, 2012 and mature on April 25,
2025.
72
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
The aggregate maturities of other long - term obligations at September 30, 20 10 are as follows:
Fiscal Year
Ending Long-term
September 30 ObligationInterest Total
2011 $ 210,000 $ 5,217 $ 215,217
2012 445,091 253,087 698,178
2013 809,266 583,435 1,392,701
2014 879,412 556,017 1,435,429
2015 954,201 525,578 1,479,779
2016-2020 5,024,281 2,061,477 7,085,758
2021-2025 7,113,108 737,495 7,850,603
$ 15,435,359 $ 4,722,306 $ 20,157,665
Less: Net interest added
to principal 2011-2012 919,701 919,701
$ 14,515,658 $ 4,722,306 $ 19,237,964
On May 13, 2009, the City issued Resolution No. 2009 - 27076 which authorized the issuance of three lines
of credit not to exceed an aggregate principal amount of $60 million to pay the costs of water, sewer and
stormwater projects. The lines of cr edit were obtained from three different financial institutions for $20
million each. Tax - exempt draws against the line of credit will have a variable interest rate equal to the
greater of (1) 2.00% or (2) the 30 - day Libor rate plus 1.55%, and the taxable draws will have a variable
rate equal to the greater of (1) 3.00% or (2) the sum of 2.30% plus the Libor Rate. There will be an annual
fee of .80% on the unused portion of the line of credit payable on a quarterly basis. The City shall pay the
financial institutions the entire unpaid principal balance together with all accrued and unpaid interest on
November 21, 2010 (the “Maturity Date”). As of September 30, 20 10 , no amounts ha ve been drawn down
from any of the lines of credit.
73
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
6. Changes in long - term liabilities
Long - term liability activity for the year ended September 30, 20 10 is as follows:
The City’s internal service funds predominantly serve the governmental funds. Accordingly, lon g- term liabi lities
for them are included as part of the above totals for governmental activities. At September 30, 20 10 ,
$ 1,153,738 internal service funds compensated absences are included in the above amounts. Also, for the
governmental activities, claims and judgmen ts and compensated absences are generally liquidated by the
internal service and general fund respectively.
74
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
7. Subsequent Event s
On November 16, 2010, the City issued $17,155,000 in Parking Revenue Refunding Bonds, Series 2010A
and $27,405,000 in Parking Revenue Bonds, Series 2010B. The Series 2010A Bonds are being issued by
the City for the purpose of providing funds, together with other available moneys, to (i) current refund the
City’s outstanding Parking Revenue Bonds, Series 1997, previously issued in the aggregate principal
amount of $21,000,000, of which $19,195,000 are now outstanding, (ii) fund a deposit to the Reserve
Account and (iii) pay costs of issuance of the Series 2010A Bonds. The Series 2010A Bonds were issued
with interest rates of 3.00% to 5.00% payable semiannually on March 1 and September 1, and will mature
serially through September 1, 2022.
The Series 2010B Bonds are being issued by the City for the purpose of providing funds, together with
other available moneys, to (i) pay the costs of acquiring and constructing a new parking garage and other
capital improvements to the Parking System, (ii) fund a deposit to the Reserve Account and (iii) pay costs
of issuance of the Series 2010B Bonds. The Series 2010B Bonds were issued with interest rates of 4.00%
to 5.15% payable semiannually on March 1 and September 1, and will mature serially through September
1, 2040.
Both Series 2010A and 2010B Bonds will be repaid solely from pledged revenues of the Parking System.
On January 19, 2011, the City of Miami Beach issued Resolution No. 2011 - 27590 which authorized the
issuance of a line of credit not to exceed an aggregate principal amount of $30 million to pay the costs of
capital projects. The line of credit was obtained from one financial institution. Tax - exempt draws against
the line of credit will have a variable interest rate 74% of Libor rate plus 1.05%, and the taxable draws will
have a variable rate equal to Libor rate plus 1.05%. There will be an annual fee of .35% on the un used
portion of the line of credit payable on a quarterly basis. The City shall pay the financial institution the
entire unpaid principal balance together with all accrued and unpaid interest on July 28, 2012 (the
“Maturity Date”).
8. Current Refunding s
On February 17, 2010, the City issued $13,590,000 in Water & Sewer Revenue Refunding Bonds,
Taxable Series 2009J - 1A, and $10,000,000 in Water & Sewer Revenue Refunding Bonds, Taxable Series
2009J - 1B, with interest rates ranging from 4.1% to 5.0%, depending on the maturity. In addition, the City
issued $16,185,000 in Stormwater Revenue Refunding Bonds, Taxable Series 2009J - 2, with interest rates
ranging from 2.0% to 4.5%, depending on the maturity. The proceeds of these refunding bonds were
used to currently refund the following bonds:
The proceeds of $23,590,000 from the Water & Sewer Revenue Refunding Bonds, Taxable Series 2009J -
1A and Series 2009J - 1B, and $16,185,000 from the Stormwater Revenue Refunding Bonds, Taxable
Ser ies 2009J - 2 were deposited in an irrevocable trust with an escrow agent to currently refund the above
mentioned bonds. The net present value economic gain from this current refunding was $2.3 million on
the Water & Sewer bonds and $840,000 on the Stormwater bonds.
75
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
H. Governmental Fund – Fund balance
GASB Statement No. 54, establishes
Fund Balance Reporting and Governmental Fund Type Definitions
accounting and financial reporting standards for governmental funds. It establishes criteria for classifying f und
balances into specifically defined classification and clarifies definitions for governmental fund types. Fund
balances for governmental funds are reported in classification s 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.
When both restricted and unrestricted amounts are available for use, it is the City’s practice to use restricted
resources first. Additionally, the City would first use committed, then assigned, and lastly unassigned amounts
of unrestricted fund balance. The City reported the following governmental fund balances:
Nonspendable Fund Balance – These amounts cannot be spent because they are not in spendable
form .
Restricted Fund Balance - These amounts are restricted to specific purposes when constraints placed
on the use of resources are either by (a) externally imposed by creditors (such as debt covenants),
grantors, contributors, or laws or regulati ons of other governments; or (b) imposed by law through
constitutional provisions or enabling legislations.
Committed Fund Balance – These amounts can only be used for specific purposes pursuant to
constraints imposed by the City Commission. The constra ints cannot be removed unless the
Commission remove it in the same manner it was implemented.
Assigned Fund Balance – These amounts are approved and committed by the City commission
subsequent to September 30, 20 10 . The balance also includes encumbrances assigned for goods
and services.
Unassigned Fund Balance – includes residual positive fund balance within the General Fund which
has not been classified within the other above mentioned categories. Unassigned fund balance may
also include negative bala nces for any governmental fund if expenditures exceed amounts restricted,
committed, or assigned for those specific purposes.
76
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
Below is a table of fund balance categories and classifications at September 30, 2010 for the City’s
governmental funds :
Miami
Beach
ResortRedevelopmentCapital Other
General Tax Agency Projects Governmental
Fund balances:
Non-spendable:
Prepaids $ $ $ $ 4,489 $
Restricted:
General government 1,011,362
Public safety 4,653,291 2,777,383
Human services 130,840
Physical environment 19,145
Economic environment 12,941,035 2,653,329
Transportation 21,731,860
Culture and recreation 8,440,145 144,723
Capital projects 168,097,039
Debt service 8,119,354
Committed:
Culture and recreation 5,486,416
Capital projects 34,091,211
Capital reserves 6,327,007
Assigned:
General government 5,257,752
Emergencies 38,586,012
Encumbrances 608,436
Public safety 69,221
Unassigned:
General government 3,618,064
Reimbursable grants
funds
(339,855) (667)
Reimbursable
boardup/ Relocation
charges
(78,754)
Non-reimbursable
grant funds
(907,738)
Non-reimbursable/
none funded capital
expenditures
(2,213,271)
Unrealized gains 2,435,263
Total Fund Balance $ 55,158,818 $ 8,440,145 $ 12,945,524 $ 199,635,124 $ 47,483,481
77
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
The City is pending reimbursement fr om various grantors for the reimbursable grant funds balance of
$340,5 2 2.
The City is pending reimbursement for the $78,754 in cost incurred to relocate occupants and/ or board
up abandoned, unsafe property within City limits. Property owners are issued a bill and a lien is placed
against the property after 60 days of non - payment.
The non - reimbursable grant funds of $907,738 consists of $218,744 f rom the State of Florida HRS grant,
$59,434 from HUD HOME grant, and $629,560 from the Florida DOT Electri c Shuttle Grant. Expenditures
incurred against these grants were not reimbursed by the grantor and as such, will be funded by the City’s
other funding sources over time based on available resources.
The non - reimbursable/ no n- funded capital expenditures of $2,213,271 consists of $616,315 from the
North Shore Streetscape Improvement Project, which improve d the Street and Streetscape of Collins Ave
and Seventy first Street including, but not limited to, lighting, landscaping, furnishing, streets, sidewalks
and crosswalks. $1,046,285 from the Bass Museum expansion and renovation and $550,671 from the
Lincoln Road Streetscape Improvement Project, which improve d the streetscape of Lincoln Road
including, but not limited to the area of Ocean to the Bay consisting of lighting, landscaping, furnishing,
streets, sidewalks and crosswalks. These balances will be funded by the City’s other funding s ources,
over time, based on available resources.
I . Other Information
1. Risk Management
The City is exposed to v arious risks of loss from civil liability to other parties (automobile liability, general
liability, police professional liability, public official liability); statutory workers' compensation benefits for
injured employees; and the theft or accidental dama ge to City property (buildings and business contents).
The City established an internal service Self - Insurance Fund (the “Fund”) to account for its risk financing
activities. The Fund pays for all claims and judgments made against the City for accidental losses for
which the City is self - insured, and the premium costs for insurance policies to protect the City's property.
A third party insurer (e xclusive of windstorm coverage) provides coverage for losses to City buildings
above various deductible amounts . The City maintains no excess coverage with independent insurance
carriers for the workers’ compensation, general, automobile, police professional and public official liability
self - insurance program. Premiums are charged to the respective City funds and determined based on
amounts necessary to provide funding for current losses and to meet the required annual payments during
the fiscal year. There were no settlements in excess of applicable insurance for the past three years.
During fiscal year 20 10 the City’s paid $1.8 million in property i nsurance premium . The City’s windstorm
insurance coverage was decreased to $10 million.
The Fund derives revenue from all City departments through an allocation formula and from investment
income earned on cash and investments within the F und. The Fund accrues an amount based on an
external actuarial computation which includes known claims and an estimate for claims incurred but not
yet reported, regardless of the ultimate date of payment or disposition.
78
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
T he following are the changes in the funds' claims liability amount during fiscal year 200 9 and 20 10
r espectively:
2009 2010
Unpaid claims, beginning of year $ 22,898,133 $ 24,572,840
Incurred claims (includes incurred but not yet reported) 8,839,225 3,923,995
Less: claim payments 7,164,518 5,298,712
Unpaid claims, end of year $ 24,572,840 $ 23,198,123
The City established an internal service Health Insurance Fund (the “Fund”) to account for Medical and
Dental activities. Revenues from employee and City premiums are recorded in the Fund. The Fund pays
for all claims and the premium cost of “stop loss” insurance coverage. Both medical and dental claims are
administered by a third party service provider.
T he following are the changes in the funds' claims liability amount during fiscal year 20 10 .
2010
Unpaid claims, beginning of year $ 1,696,173
Incurred claims (includes incurred but not yet reported) 16,958,487
Less: claim payments 16,958,487
Unpaid claims, end of year $ 1,696,173
No data is available for fiscal year 2009.
2. Significant Commitments and Contingencies
a. The City, in the normal course of operations, is a party to various other actions in which plaintiffs
have alleged certain damages. In all cases, management does not believe the disposition of these
matters will materially affect the financial position of the City. Probable losses are accrued in the
City’s Risk Self - Insurance fund.
b. The City participates in a number of Federal and State assisted gr ant programs, which are subject
to financial and compliance audits. Audits for the se programs are to be conducted at a future date,
and the City expects the amount, if any, of the expenditures which may be disallowed by the
granting agency to be immaterial.
c. GASB Statement 49,
establishes accounting and financial reporting standards for pollution remediation obligations.
T he City has identified a number of sites that are undergoing pollution remediation activities .
Pollution at the sites is due to contamination fr om ammonia and arsenic in soil and in groundwater.
As of September 30, 20 10 , the C ity has recorded a pollution remediation liability of $ 1 million in
Sanitation fund and in the business - type activities.
79
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
3. Pension Plan
a. Miami Beach Employee s’ Retirement System
i. Summary of Significant Accounting Principles
The Plan financial statements are prepared using the accrual basis of accounting. Employee and
employer contributions are recognized as r evenue in the period in which the employee services are
performed. Benefits and refunds are recognized when due and payable in accordance with the terms of
the Plan. Accounting Principles Generally Accepted in the United States of America requires
manageme nt to make estimates and assumptions that affect certain reported amounts and disclosures.
Accordingly, the actual results could differ from those estimates. Investments in common stock, stock
index funds and aggregate bond index funds are recorded at fair value as determined by quoted
published prices. Short - term investments are recorded at cost which approximates fair value. Dividends
and interest are recognized when earned. Gains and losses on sales and exchanges of investments are
recognized on the trade date.
ii Plan Description
All full - time employees of the City who work more than 30 hours per week and hold classified and
unclassified positions, except for Policemen and Firemen and persons who elected to join the defined
contribution retirement Plan sponsored by the City, are covered by the City of Miami Beach, Florida,
Miami Beach Employees’ Retirement Plan (the "Plan"). A classified employee and/or an unclassified
employee is one who is employed by the City on a regular basis, receives compensat ion from the City
for personal services, and who is within a group or classification of employees designated by the
Board of Trustees as eligible for membership in the Plan. The Plan is the administrator of a single -
employer pension plan that was established by the City under Ordinance #2006 - 3504. Effective on
March 18, 2006, the Miami Beach Employees’ Retirement System was created under and by the
authority of Chapter 18691, Laws of Florida, Acts of 1937, as amended, by merging the Retirement
System for General Employees of the City of Miami Beach created by Ordinance 1901 with the
Retirement System for Unclassified Employees and Elected Officials of the City of Miami Beach
created by Ordinance 88 - 2603, as amended.
At October 1, 200 9 membership consisted of:
Retirees and beneficiaries currently receiving
benefits and terminated employees entitled
to benefits but not yet receiving them 1, 127
Current Employees 1, 15 4
Principally all full - time classified and unclassified employees of the City, except those who joined the
401(a) Plan, must participate in the Plan. Classified employees in the Plan are segregated into three
unions: American Federation of State, County, and Municipal Employees (“AFSCME”),
Communications Workers of Amer ica (“ CWA ”) (formerly Benevolent) and Government Supervisors
Association of Florida (“GSA F ”). Certain other employees are also segregated into a category called
.
"Other". Unclassified employees are not represented by a bargaining unit The Plan provides
re tirement benefits as well as deat h and disability benefits at three different tiers depending on when
the employees entered the Plan. The First Tier is for members that entered the Plan prior to the
Second Tier Dates. The Second Tier Dates were established when each of the unions bargained with
the City to establish new guidelines for retirement benefits relating to employees associated with their
Unions. The Second Tier Dates are April 30, 1993 for members of AFSCME; August 1, 1993 for
those classified as “Other and GSA F ” and February 21, 1994 for members of CWA. The Second Tier
is for members that entered the Plan on or after the Second Tier Dates, but before September 30,
2010.
80
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
The Third Tier Dates are for employees hired on or after September 30, 2010 other than members of
CWA.
Classified members administered under the First Tier are eligible for Normal Retirement at age 50
and incrementally over five years of Creditable Service and are entitled to benefits of 3% of Final
Average Monthly Earnings (“FA ME”) multiplied by the first 15 years of Creditable Service plus 4% of
FAME multiplied by years of service in excess of 15, with the total not to exceed 90% of the F AME .
First Tier unclassified members accrued 4% for Creditable Service before October 18, 1992.
Unclassified First Tier members accrued 3% per year of service after October 18, 1992, with the total
not to exceed 80% of FAME. Classified and unclassified members administered under the Second
Tier are eligible for Normal Retirement at age 55 and five years of Creditable Service and are entitled
to benefits of 3% of FAME multiplied by Creditable Service, with a maximum of 80% of FAME.
Classified and unclassified members administered under the Third Tier are eligible for Normal
Retirement at age 55 with at least 30 years of creditable service, or age 62 with at least five years of
creditable service and are entitled to benefits of 2.5% of FAME multiplied by creditable service,
subject to a maximum of 80% of FAME. For elected officials, City Manager or City Attorney, the
benefit is 4% of FAME for each year of creditable service as an elected official, city manager or city
attorney plus the retirement benefit as defined above for any other period of city employment, subject
to a maximum of 80% of FAME.
For Unclassified First Tier Members who became a member prior to October 18, 1992 and was
continuously a member from that date until March 18, 2006, FAME is defined as the larger of one -
twelfth average covered salary during the two highest paid years of c reditable service or one - twelfth of
the pay of the year immediately preceding March 18, 2006. Effective as of September 30, 2010,
FAME for those members who are in a classification within the AFSCME or GSA bargaining units,
and for any Unclassified or “Ot her” member who have obtained normal retirement age or are within 24
months from normal retirement age is defined as average covered salary during the two highest paid
years of creditable service. FAME for those member who as of September 30, 2010 are between 24
and 36 months from normal retirement age is defined as average covered salary during the four
highest paid years of creditable service. FAME for those members who as of September 30, 2010
are more than 48 months from normal retirement age is defin ed as average covered salary during the
five highest paid years of creditable service.
All First Tier employees who participate are required to contribute 12 % (10% prior to July 14, 2010) of
their salary to the Pla n. All Second and Third Tier employees a re required to contribute 10 % (8% for
Second Tier members prior to July 14, 2010) of their salary. Employee contributions, including
buybacks , are disclosed in the financial statements . Any First Tier member who terminates
employment may either request a refund of his or her own contributions plus interest or receive his or
her accrued benefit beginning at age 50, if at least five years of Creditable Service are completed.
Any Second Tier member who entered on or after the Second Tier Date and who termin ates
employment after five years of Creditable Service may either request a refund of his or her own
contributions plus interest or receive his or her accrued benefit beginning at age 55. Any Third Tier
member who entered on or after the Third Tier Date and who terminates employment after five years
of creditable service but prior to the normal or early retirement date shall be eligible to receive a
normal retirement benefit at age 62.
iii. Deferred retirement option plan (DROP)
A DROP was enacted on January 28, 2009 by Ordinance 2009 - 3626. Under this Plan, participants
who have attained eligibility for Normal Retirement may continue working with the City for up to three
years while receiving a retirement benefit that is deposited into a DROP account. The amount of the
benefit is calculated as if the participant had retired on the date of the DROP commencement. Upon
termination with the City, the accumulated value of the DROP account is distributed to the participant.
A member’s creditable service, accrued benefit and compensation calculation shall be frozen. At
September 30, 2010 and 2009, there were 49 and 19 DROP participants, respectively .
81
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
iv . Funding Policy, Contributions Required and Contributions Made
The Plan’s funding policy provides for periodic employer contributions at actuarially determined rates
that, expressed as percentages of annual covered payroll, are sufficient to accumulate sufficient
assets to pay benefits when due. Level percentage of payroll employer contribution rates are
determined using the entry age actuarial cost method. The Plan also uses the level percentage of
payroll method to amortize any unfunded actuarial accrued liability over a 30 - year period.
Effective October 1, 1996, the asset valuation method was changed to recogniz e the difference
between actual investment return and expected return and will be amortized over five (5) years.
Significant actuarial assumptions used include (a) investment return of 8. 50 %, net rate after
investment related expenses, (b) 2000 Group Ann uity Mortality Table; for those who have terminated
employment before October 1, 1993, rates are based on the Plan’s own experience, (c) for
retirement, once a member is eligible to retire, a probability of retirement based on age is used
(effective Octobe r 1, 1996), (d) projected salary increases of 6% per year compounded annually,
attributable to inflation, and (e) cost of living increases of 2.5% per year compounded annually.
For the fiscal year ended September 30, 2010 , the City was required to make co ntribution s of
$17,137,394 or 25.16% of covered payroll to the Plan in accordance with actuarially determined
requirements computed through an actuarial valuation performed as of October 1, 2009 . For the year
ended September 30, 2010 , the employees contrib uted $6,097,359 and buybacks were $749,153 .
The Plan uses the following actuarial valuations at 10/01/0 9:
Actuarial Cost Method Entry Age Normal
Actuarial Asset Valuation Method The actuarial value of assets phase in the difference
between the expected actuarial value and actual
market value of assets at the rate of 20% per year.
The actuarial value of assets will be further adjusted
to the extent necessary to fall within the corridor
whose lower limit is 80% of the market value of plan
assets and whose upper limit is 120% of the market
value of plan assets. During periods when
investment performance exceeds the assumed rate,
actuarial value of assets will tend to be less than
market value. D uring periods when investment
performance is less than the assumed rate, actuarial
value of assets will tend to be greater than market
value.
Amortization Method Level dollar
Actuarial Assumptions:
Investment rate of return 8. 35 %
Projected salary increases 6%
Inflation 4%
COLA 2 .5%
82
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
v. T rend In formation
Trend information indicates the progress made in accumulating sufficient assets to pay benefits when
due , as follows:
Schedule of Employer Contributions
Percentage of
Year EndedAnnual RequiredAnnual PensionAnnual Pension Cost
September 30, Contribution C os t Contributed
2008 $ 13,911,545 $ 13,911,545 100%
2009 12,863,823 12,863,823 100%
2010 17,137,394 17,137,394 100%
vi. Funded Status and Funding Progress
The schedule of fun ding progress, presented as RSI following the notes to the financial statements,
presents multiyear trend information about whether the actuarial value of plan assets are increasing
or decreasing over time relative to the actuarial accrued liability for be nefits.
An analysis of the funded status for the fiscal year ended September 30, 2010, for the Miami Beach
Employee’ Retirement System is as follows:
Actuarial UAAL as
Actuarial Accrued Unfunded % of
Valuation Value of Liability AAL FundedCoveredCovered
Date Assets (AAL) (UAAL) Ratio PayrollPayroll
10/01/2009420,520,000 $ $ 551,698,000 $ 131,178,000 76.2%70,098,000 $ 187.1%
b. Retirement System for Firefighter s and Police Officers
i. Summary of Significant Accounting Principles
The Plan financial statements are prepared using the accrual basis of accounting. Employee and
employer contributions are recognized as revenue in the period in which the employee s ervice s are
performed. Accounting Principles Generally Accepted in the United States of America requires
management to make estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, the actual results could differ from th ose estimates. The fair value of quoted
investments securities is based on the closing sale price as of September 30, 2010 , as reported by
recognized securities exchanges. Short term obligations are stated at cost which approximates
market value. Gain s a nd losses on the sale of investments are based on the first - in, first - out
identification method. Dividends and interest are recognized when earned.
83
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
ii . Plan Description
The City’s Pension Fund for Firefighters and Police (the “Plan”) was formall y known as City Pension
Fund for Fireman and Policeman – City of Miami Beach and City Supplemental Pension Fund for
Firefighters and Police Officers – City of Miami Beach. The former plan s were merged and the name
was changed to City Pension Fund for Fire fighters and Police Officers in the City of Miami Beach. The
Plan is d efined b enefit p ension p lans covering substantially all police officers and firefighters of the
City, as established by Chapter 23414, Laws of Florida, Special Acts of 1945 as amended th rough
November 4, 200 3.
Any member may retire on a service retirement pension upon the attainment of age 50 or, if earlier,
the date when age and length of creditable service equals to at least 70.
Upon, retirement, a member will receive a monthly pension, payable for life, equal to 3% of the
average monthly salary for each of the first 15 years of creditable service and 4% of the average
monthly salary for each year of creditable service in excess of 15 years, provided that the pension
does not exceed 90% of the average monthly salary. The average monthly salary of the member is
computed based on the salary for the two highest paid years prior to the date of retirement or the
average of the last 2 paid years of the member prior to the date of retirement.
Effective November 4, 2003 , a member who retires, enters the deferred retirement option plan, or
separate s from the City employment, and is entitled to service or disability benefits, may elect in lieu
of such benefit, a joint and contingent survivor option, at any time prior to retirement. Under the joint
and contingent survivor option, the member shall receive an actuarially adjustment retirement benefit
during the member’s lifetime, and have monthly benefit (or designated percentage of 25%, 50%,
66.67 % or 75 % thereof) continued after the member’s death to and for the lifetime of the member’s
designated joint pensioner. The election of the joint and contingent survivor option shall be null and
void if the designated joint pensioner dies before the member’s retirement. The value of the joint and
contingent survivor option shall be actuarially equivalent to the value otherwise payable.
In the alternative and in lieu of the normal form of benefit, the member may, at any time prior to
retirement, elect to receive a lifetime retirement benefit with 120 monthly payments guaranteed. If
the member should die before 120 monthly payments are made, benefits will continue to be paid to
the member’s designated beneficiary for the balance of the 120 month period. If the retired member is
living after 120 monthly payments are made, the payment shall be continued for the member’s
remaining lifetime.
i ii . Deferred retirement option plan
An active employee member may enter into the Deferred Retirement Option Plan (the DROP ) on the
first day of any month after attainment of age 50 or rule of 70 retirement and becoming eligible to
receive a service retirement pension. Upon becoming eligible to participate in the DROP, an
employee may elect to enter that program for a period not to exceed 36 months.
DROP participants have self - directed accounts, and the rate of return earned will therefore depend on
the return of the particular accounts selected by the individuals. Once a member enters the DROP,
their monthly retirement benefit is f ixed, and their monthly benefit is paid into their DROP account.
Upon termination of employment, the balance in the member’s DROP account, including earnings, is
payable to them and they also begin to receive their previously fixed monthly retirement benefit. The
DROP is administrated by the Plan’s Board of Trustees.
At September 30, 2010 , $ 6,427,215 the total amount of the Deferred Retirement Option Plan payable
represents the balance of the self - directed participants as all of the participants are now in the self -
directed DROP.
84
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
At October 1, 2009 the plan membership consisted of the following:
As of
October 1,
2009
Active Members 4 78
Deferred Vested Members 1 2
Retired Members:
a. Service 473 *
b. Di sabled 62
c. Beneficiaries 9 9
6 34
Total 1, 1 24
* Including members in the DROP
iv. Funding Policy, Contributions Required and Contributions Made .
The City (the "Employer") is required to contribute an actuarially determined amount that, when
combined with members' contributions, will fully provide for all benefits as they become payable.
Members of the Plan contribute 10% of their salary .
The actual contribution from the City of Miami Beach, and the State of Florida for active em ployees for
the fiscal year ended September 30, 2010 , was $23,403,818 and covered payroll was approximately
$ 49,144,000 . The contribution required from the City and the State of Florida for the fiscal year ended
September 30, 2010 , was actuarially determined by the October 1, 200 8 valuation to be $23,403,818 .
The actuarially computed annual covered payroll used in the October 1, 200 8 v aluation was
$40,661,885 . The annual pension cost was $ 23,403,818 for the fiscal year ended September 30,
2010 .
Signific ant actuarial assumptions used inclu de: (a) investment return of 8.3%; (b) pr ojected salary
increases of 2.87% - 9.8 7 % including 3.5% for inflation; and (c) post retirement benefit has a cost of
living increases of 2.5% per year compounded annually.
The Plan uses the following actuarial valuations at 10/01/0 9:
Actuarial Cost Method E ntry age Normal
Amortization Method Level percentage , closed
Remaining amortization period 22 – 30 years
Asset Valuation Method Market Related V alue
Actuarial Assumpt ions:
Investment rate of return * 8.3 0%
Projected salary increases 2.87 % - 9.8 7%
Cost of living adjustment 2 .5 0%
85
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
v. Trend Information
Trend information indicates the progress made in accumulating sufficient assets to pay benefits when
due , a s follows:
Schedule of Employer Contributions
Percentage of
Year EndedAnnual RequiredAnnual PensionAnnual Pension Cost
September 30, Contribution C os t Contributed
2008 $ 17,618,045 $ 17,618,045 100%
2009 20,159,995 20,159,995 100%
2010 23,403,818 23,403,818 100%
vi. Funded Status and Funding Progress
The schedule of funding progress, presented as RSI following the notes to the financial statements,
presents multiyear trend information about whether the actuarial value of plan assets are increasing
or decreasing over time relative to the actuarial accrued liability for benefits.
An analysis of the funded status for the fiscal year ended September 30, 2010, for the Retirement
System for Fire Fighters and Police Officers is as follows:
Actuarial UAAL as
Actuarial Accrued Unfunded % of
Valuation Value of Liability AAL FundedCoveredCovered
Date Assets (AAL) (UAAL) Ratio PayrollPayroll
10/01/2009517,602,834 $ $ 784,395,822 $ 266,792,988 66.0%41,574,935 $ 641.7%
c. Firemen’s and Police Relief and Pension Funds
The City’s firefighters and police officers are members of two separate non - contributory money
p urchase benefit plans established under the provisions of Florida Statutes, Chapters 175 and 185,
respectively. These plans are funded solely from proceeds of certain excise taxes levied by the City
and imposed upon property and casualty insurance coverage within City limits. This tax , which is
collected from insurers by the State of Florida, is remitted to the Plans’ Boards of Trustees. The City is
under no obligation to make any further contributions to the plans. Th e excise taxes received from the
State of Florida and remitted to the plan s for the year ended September 30, 2010 was $ 1,466,064 for
firefighters and $ 603,104 for police officers. These payments were recorded on the City’s books as
revenues and expenditures during the fiscal year.
Plan b enef its are allocated to participants based upon their service during the year and the level of
funding received during the year. Participants are fully vested after 10 years of service with no
benefits vested prior to 10 years of service, except those prior to June 1983. All benefits are paid in a
lump sum form at , except for the Police Relief Funds, where participants may also elect not to
withdraw or to partially withdraw, his or her retirement funds.
86
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
d. Defined Contribution Retirement Plan - 401 (A)
Effe ctive October 1 8, 1992 City’s Ordinance No. 92 - 2813 provided for the creation of a Defined
Contribution Retirement Plan (the “Plan”) under section 401(A) of the internal revenue code of 1986.
The Plan provides retirement and other related benefits for eligible employees as an option over the
other retirement systems sponsored by the City.
Any person employed on or after October 18, 1992, in the unclassified service of the City, has the
right to select the Plan as an optional retirement plan to the Unclass ified Employees and Elected
Officials Retirement System. At the time of the Ordinance, employee s of the City who were member s
of the Unclassified Employee and Elected Official Retirement System (the “System”) had the
irrevocable right to elect to transfer membership from th e System to the Plan for a limited period of
time. Effective March 19, 2006 the Plan is no longer offered to new employees of the City. Employees
participating in the Plan prior to March 19, 2006 were given the option to transfer membership to the
System.
The Plan is administrated by a Board of Trustees, which has the general responsibility for the proper
operation and management of the Plan. The Plan complies with the provisions of section 401(A) of
the Internal Revenue Code of 1986 and may be amended by the City Commission of the City . The
City has no fiducia ry responsibility for the Plan, consequently, amounts accrued for benefits are not
recorded in the fiduciary fund.
Employees in the Plan hired prior to February 21, 1994 are required to contribute 10% of their salary
while those hired subsequent to February 21, 1994 are required to contribute 8% of their salary. The
City matches the employee’s contribution 100%. The Plan of each employee is the immediate
property of the employee . Employee have a choice of plan administrators, Nationwide Retirement
Solutions (formerly Public Employee Benefits Services Corporation – PEBSCO) and IMCA - RC. In
addition, the employee is responsible for the investment of their funds amongst choices of investment
vehicles offered by their selected plan administrator.
Plan information as of and for the fiscal year ended September 30, 2010 is a follows:
Members in the Plan 46
City’s contribution $ 245,912
Percentage of covered payroll 9.52 %
Employees’ contribution 211,184
Percentage of covered payroll 8.17 %
e. Postemployment Benefits Other than Pension Benefits (OPEB)
i. Plan description
Pursuant to Section 112.08, Florida Statutes, the City is required to permit eligible retirees and their
eligible dependents to participate in the City’s health insurance program at a cost to the retirees that is
no greater than the cost at which coverage is available for active employees. The City ’s single
employer OPEB Plan (the Plan) cu rrently provides the following Post Employment Benefits:
Health and Dental Insurance - Employees hired prior to March 18, 2006 are eligible to receive a
1.
50% health insurance contribution of the total premium cost. At age 65, if the retiree is eligible f or
Medicare Part B, the City contributes 50% of the Medicare Part B payment. Employees hired
after March 18, 2006, after vesting in City’s retirement plans, are eligible to receive an offset to
the retiree premium equal to $10 per year of credible service, up to a maximum of $250 per
month until age 65 and $5 per year of credible service up to a maximum of $125, thereafter.
87
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
Life Insurance ($1,000)
2.
At S eptember 30, 2008 the City established an OPEB Trust (the Trust) and began funding its OPEB
obligatio n. Stand alone financial statements for the Trust are not prepared.
At October 1, 2009 the date of the latest actuarial valuation, plan participation consisted of
OPEB plan participants 2, 038
Retirees receiving benefits 1,25 6
ii. Funding policy
The City has the authority to establish and amend funding policy. For the year ended September 30,
2010 , the City paid $ 6.4 million in OPEB benefits on a pay - as - go basis and $ 1.87 million to the Trust.
The City’s net OPEB obligation at September 30, 2010 was $ 15.1 million. It is the City’s intent to base
future Trust contributions on the annual required contribution (ARC) in subsequent annual actuarial
reports , however, no Trust contributions are legally or contractually requi red.
iii. Annual OPEB Cost and Net OPEB Obligation
The annual cost (expense) of the City’s Plan is calculated based on the ARC, an amount actuarial ly
determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a
level o f funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and
amortize any unfunded actuarial liability over a period not to exceed 30 years. The following table
shows the components of the City’s annual OPEB cost for t he year, the amount actually contributed,
and the change in the net OPEB obligation.
Annual required contribution $ 16,285,000
Interest on net OPEB obligation 587,000
Adjustment to annual required contribution (421,000)
Annual OPEB cost (expense) 16,451,000
Contributions made 8,273,000
Net OPEB obligation 8,178,000
Net OPEB obligation - beginning of year 6,908,123
Net OPEB obligation - end of year $ 15,086,123
iv. Trend Information
Trend information indicates the progress made in accumulating sufficient assets to pay benefits when
due, as follows :
Percentage of
Year EndedAnnual OPEB OPEB CostNet OPEB
September 30, Cost ContributedObligation
2009 $ 16,008,000 57% $ 6,908,123
2010 16,451,000 50% 15,086,123
88
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
v. Funded status and funding progress
The schedule of funding progress, presented as RSI following the notes to the financial statements,
presents multiyear trend information about whether the actuarial value of plan assets are increasing
or decreasing over time relative to the actuarial accrued liability for benefits. An analysis of the funded
status as of the latest actuarial valuation date is as follows:
UAAL as % of
Actuarial Active Active
Actuarial Accrued Unfunded ParticipantsParticipants
Valuation Value of Liability AAL FundedCoveredCovered
Date Assets (AAL) (UAAL) Ratio Payroll Payroll
10/01/200810,683,612 $ $ 180,926,000 $ 170,242,388 5.9%114,783,021 $ 67.4%
vi. Actuarial methods and assumptions
Actuar ial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the healthcare cos t trend. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are
subject to continual revision as actual results are compared with past expectations and new estimates
are made about the future.
Premiums detailed in Plan provisions are sufficient for the under 65 population and 65+ population.
However, since the premiums for retirees under age 65 are determined for a combined active/ retiree
population, there is an implicit subsidy associated with retirees under age 65. The implicit rate
subsidy was accounted for by adjusting the fully insured premiums to reflect the expected cost
difference due to a retiree’s age from the average age assumed in the development of the blended
premium. There is n o implicit subsidy for retirees over age 65, since premiums are developed
specifically for this group of retirees.
89
CITY OF MIAMI BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
(Continued)
The actuarial methods are:
Acturarial cost method Projected unit credit
Amortization method Level percentage of projected payroll
Amortization period - closed 30 years
Asset valuation method Not applicable for first valuation date
The actuarial assumptions are:
Investment discount rate (long term
expectation of investment return on
assets)
8.5%
Projected annual salaries increases 3.5%
Healthcare cost trend rate
Select Ultimate
Medical 10 %5%
Medicare Part B 6 5
Dental 5 5
OPEB Trust Fund financial statements for the fiscal year ended September 30, 2010 are as follows:
Statement of Statement of Change in
Fiduciary Net Assets Fiduciary Net Assets
September 30,2010 September 30,2010
Additions
Cash $ 10, 683, 612 Employer contribution $ 1,870,000
Total Assets 10,683,612 Interest and dividends income 173,195
Net increase 2,043,195
Liabilities Assets held in Trust
Total liabilities Beginning of year 8,640,417
Net Assets $ 10,683,612 End of Year $ 10,683,612
f. Financial Statements
Each of the Retirement Systems are audited separately. Complete financial statements can be
obtained at the following offices:
C ity of Miami Beach City of Miami Beach
Employee Retirement System Retirement System for Firefighters and Police Officers
1700 Convention Center Drive 1691 Michigan Ave. Suite 555
M iami Beach, Florida 33139 Miami Beach, Florida 33139
M iami Beach Policemen’s Relief Miami Beach Firemen’s Relief and Pension Fund
and Pension F und City of Miami Beach
th
999 11 Street 1700 Convention Center Drive
Miami Beach, Florida 33139 Miami Beach, Florida 33139
90
REQUIRED SUPPLEMENTARY
INFORMATION (RSI)
CITY OF MIAMI BEACH, FLORIDA
SCHEDULE OF FUNDING PROGRESS
RETIREMENT SYSTEMS (in thousands)
(Unaudited)
Miami Beach Employees' Retirement Plan
Actuarial
Actuarial Accrued UAAL As %
Actuarial Value Liability (AAL) Unfunded AAL Funded Covered of Covered
Valuation of Assets - Entry Age (UAAL) Ratio Payroll Payroll
Date (a) (b) (b-a) (a/b) (c) (b-a)/c
10/1/07 $ 412,824 $ 478,067 $ 65,243 $ 86.4 % $ 59,632 109.4 %
10/1/08 425,715 526,482 100,767 80.9 68,010 148.2
10/1/09 420,520 551,698 131,178 76.2 70,097 187.1
City Pension for Firefighters and Police Officers
Actuarial
Accrued
Actuarial Liability (AAL) UAAL As %
Actuarial Value - Entry Age Unfunded AAL Funded Covered of Covered
Valuation of Assets Normal (UAAL) Ratio Payroll Payroll
Date (a) (b) (b-a) (a/b) (c) (b-a)/c
10/1/07 $ 495,994 $ 632,993 $ 136,999 78.4 % $ 38,705 354.0 %
10/1/08 507,364 683,732 176,368 74.2 40,662 433.7
10/1/09 517,603 784,396 266,793 66.0 41,575 641.7
Postemployment Benefits Other Than Pension (OPEB)
Actuarial
Accrued
Actuarial Liability (AAL) UAAL As %
Actuarial Value - Projected Unfunded AAL F un ded Covered of Covered
Valuation of Assets Unit Credit (UAAL) Ratio Payroll Payroll
Date* (a) (b) (b-a) (a/b) (c) (b-a)/ c
10/1/06 $ $ 155,956 $ 155,956 0.0 % $ 111,008 71.2 %
10/1/08 8,640 177,586 168,946 4.9 116,841 69.2
10/1/08 10,684 180,926 170,242 5.9 114,783 67.4
*Actuarial valuations are completed biannually as permitted by GASB Statement No. 45
91
CITY OF MIAMI BEACH, FLORIDA
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND
For the Fiscal Year Ended September 30, 2010
(Unaudited)
.
Variance with
Final Budget -
Budgeted Amounts Positive
Original Final Actual Amounts (Negative)
Revenues
Taxes:
Property $ 115,828,394 $ 114,182,548 $ 114,182,548 $
Sales, use and fuel taxes 1,517,700 1,422,613 1,422,613
Utility 8,991,400 9,975,273 9,975,273
Local business 3,872,000 4,298,739 4,298,739
Communication Service 5,905,000 6,328,924 6,328,924
Franchise fees 9,144,304 8,456,962 8,456,962
Permits 10,377,566 10,720,177 10,746,531 26,354
Intergovernmental 8,044,770 8,337,021 8,337,021
Charges for services 9,347,288 9,522,066 9,513,816 (8,250)
Rents and leases 4,464,386 4,759,126 4,759,126
Interest income 5,336,000 1,727,032 1,727,032
Fines and forfeits 3,089,000 2,697,071 2,697,071
Administrative fees 7,677,149 8,827,372 8,827,372
Other 8,168,920 7,008,967 7,008,962 (5)
Total revenues 201,763,877 198,263,891 198,281,990 18,099
Expenditures
General government:
Mayor and Commission 1,473,295 1,429,051 1,429,051
City Manager 2,267,038 2,232,567 2,232,567
City Clerk 1,548,332 1,470,046 1,470,046
Budget and Performance Management 1,967,578 1,958,515 1,958,515
Finance 4,379,998 4,401,059 4,401,059
Human Resources 1,757,898 1,692,080 1,692,080
Procurement 899,695 905,733 905,733
City Attorney 4,177,013 4,054,504 4,054,504
Planning 2,956,868 2,860,111 2,860,111
Media Relations 914,249 864,985 864,985
Public Works 2,512,866 2,603,660 2,603,660
Capital Improvement 3,836,319 3,581,549 3,581,549
Special Projects 1,161,214 1,295,380 1,295,380
Unclassified 4,764,571 3,340,770 3,340,770
Total general government 34,616,934 32,690,010 32,690,010
Public safety:
Ocean Rescue 8,452,691 8,848,788 8,848,788
Building Services 8,571,600 9,243,712 9,243,712
Code Compliance 4,081,141 4,195,783 4,195,783
Fire 40,549,325 41,142,078 41,142,078
Police 78,497,269 78,875,291 78,859,242 16,049
Emergency 911 578,400 455,819 455,819
Unclassified 750,000 366,690 366,690
Total public safety 141,480,426 143,128,161 143,112,112 16,049
Physical Environment 2,159,955 2,435,047 2,435,047
Transportation 4,432,788 3,794,601 3,794,601
Economic Environment 1,518,208 1,396,749 1,396,749
Human Services 498,694 489,867 489,867
Culture and recreation 31,654,774 29,624,247 29,624,247
Capital Outlay 629,442 294,083 294,083
Debt service:
Principal retirement 1,215,222 690,000 690,000
Interest and fiscal charges 304,100 629,676 629,676
Total expenditures 218,510,543 215,172,441 215,156,392 16,049
Exc ess (deficiency) of revenues
over (under) expenditures (16,746,666) (16,908,550) (16,874,402) 34,148
Other financing sources (uses)
Transfers in 23,015,440 24,965,990 24,966,083 93
Reserves for Building Services 1,546,709 1,546,709 (1,546,709)
Transfers out (7,825,483) (8,005,792) (8,005,792)
Reserves for future expenditures (1,600,570) 1,600,570
Sale of capital assets 10,000 2,213 2,213
Total other financing sources 16,746,666 16,908,550 16,962,504 53,954
Net change in fund balances 88,102 88,102
Fund balances - beginning of year 55,070,716 55,070,716 55,070,716
Fund balances - end of year $ 55,070,716 $ 55,070,716 $ 55,158,818 $ 88,102
92
CITY OF MIAMI BEACH, FLORIDA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 20 10
(Unaudited)
1. Budgetary Policy
A. Budgetary Data
The City is required to prepare, approve, adopt and execute an annual budget for such
funds as may be required by law or by sound financial practices and generally accepted
accounting principles .
The City’s governmental funds h ave legally adopted annual budgets for the General
Fund, Resort Tax Fund, Miami Beach Redevelopment Agency Fund, General Obligation
Debt Service Fund and Miami Beach Redevelopment Agency Special Obligation Debt
Service Fund.
Budget to actual comparisons for the General Fund, Resort Tax Fund and M iami Beach
Redevelopment Agency Fund are presented in the Required Supplementary Info rmation
section of this report. Budget to actual comparisons for the General Obligation Debt
Service Fund and Miami Beach Redevelopment Agency Special Obligation Debt Service
Fund are presented in the Supplementary Information section of this report .
P ursuant to the City’s Charter, the City Manager shall make public a budget summary
setting forth the proposed cost of each individual department and reflecting the personnel
for each department. The proposed budget includes anticipated expenditures and the
means of financing them. After Commission review and public hearings, the budget is
st
. The budgets are approved by fund and department , and
adopted prior to October 1
authorized at the department level. Management may transfer amounts between line
items within a department as long as the transfer does not result in an increase in the
department’s budget. Increases to funds or department budgets and transfers between
departments require City Commission approval.
There was one (1) supplemental budgetary appropriations during fiscal year ended
September 30, 20 10 .
Budgets are considered a management control and planning tool and as such are
incorporated into the accounting system of the City. Budgets are adopted on the
modified accrual basis of accoun ting . All a ppropriations lapse at year end.
Encumbrance accounting, under which purchase order commitments for the expenditures
of monies are recorded in order to reserve that portion of the applicable appropriation, is
employed as an extension of formal budgetary integration in the governmental funds.
Encumbrances outstanding at year - end are reported as commitments of fund balances,
since they do not constitute expenditures or liabilities because the commitments will be
reappropriated and honored dur ing the subsequent year.
94
SUPPLEMENTARY
INFORMATION
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds :
Special revenue funds are used to account for specific revenues that are legally restricted to
expenditure for particular purposes.
Community Development Block Grant Fund
: This fund accounts for the re ceipt and
expenditure of funds under this Federal Program.
State Housing Initiatives Partnership Fund :
This fund accounts for the receipt and expenditure
of funds under this State Program.
Parking Impact Fees Fund :
This fund accounts for impact fee reven ue paid, primarily by owners
of new and existing construction, in lieu of their ability to provide adequate parking spaces as
defined by City Ordinance. The fund is also responsible for the disbursement of funds for various
parking related projects in the impacted areas.
Transportation Concurrency Management Fund :
This fund oversees, maintains, directs the
City’s concurrency management system, the land use/transportation planning and traffic
management efforts and projects.
Police Confiscation and Training Fund :
This fund accounts for revenues received that are
restricted to police related expenditures with multiple restrictions.
American Recovery & Reinvestment Act (ARRA) Fund:
This fund accounts for revenues and
expenditures that are governed by the AR R A grant agreement s between the Federal Government
and the City.
Other Special Revenue Fund :
This fund accounts for the revenues and expenditures of a series
of small grants.
Debt Service Funds :
Debt Service Funds account for the payment of interest and principal of the current portion on
long - term debt, primarily from tax proceeds and earnings on temporary investments.
General Obligation Fund :
This fund accounts for principal and interest payments made for
general obligations.
Pension Special Obligati on Fund
: This fund accounts for principal and interest payments made
for the Pension Special Obligation Bonds
Gulf Breeze Special Obligation Fund :
This fund accounts for principal and interest payments
made for the Gulf Breeze VRDS.
Miami Be ach Redevelopment Agency Fund :
This fund accounts for principal and interest
payments made for the Tax Increment Revenue Special Obligation Bonds.
Sunshine State Special Obligation Fund :
This fund accounts for principal and interest
payments made for the Sunshine Stat e VRDS.
Other Debt Service Fund:
This fund accounts for principal and interest payment on the Resort
Tax Special Obligation bonds and the Ameresco loan. .
95
CITY OF MIAMI BEACH, FLORIDA
COMBINED BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2010
Total
Nonmajor Total Total
Special Nonmajor Nonmajor
Revenue Debt Service Governmental
Funds Funds Funds
ASSETS
Cash and investments $ 40,246,997 $ 7,961,217 $ 48,208,214
Receivables, net 622,182 540,499 1,162,681
Due from other funds 2,130 2,130
Due from other governments 2,557,476 2,557,476
Prepaid 3,004 3,004
Total assets $ 43,431,789 $ 8,501,716 $ 51,933,505
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 2,390,219 $ $ 2,390,219
Retainage payable 917,311 917,311
Accrued expenditures 477,055 3,500 480,555
Unearned/deferred revenues 133,723 378,862 512,585
Due to other governments 13,031 13,031
Due to other funds 136,323 136,323
Total liabilities 4,067,662 382,362 4,450,024
FUND BALANCES
Restricted 28,468,642 8,119,354 36,587,996
Committed 11,813,423 11,813,423
Assigned 69,221 69,221
Unassigned (987,159) (987,159)
Total fund balances 39,364,127 8,119,354 47,483,481
Total liabilities and
fund balances $ 43,431,789 $ 8,501,716 $ 51,933,505
96
CITY OF MIAMI BEACH, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended September 30, 2010
Total Total Total
Nonmajor Nonmajor Nonmajor
Special Revenue Debt Service Governmental
Funds Funds Funds
REVENUES
Property taxes $ $ 5,933,745 $ 5,933,745
Sales , Use and Fuel Taxes 2,744,563 2,744,563
Other taxes 2,069,169 2,069,169
Federal grants 13,652,936 13,652,936
State grants 1,583,745 1,583,745
Grants from other local units 808,118 808,118
Charges for services 3,133,953 3,133,953
Fines and forfeitures 722,338 722,338
Impact Fees 1,211,002 1,211,002
Interest income 321,007 1,485 322,492
Miscellaneous 474,353 474,353
Total revenues 26,721,184 5,935,230 32,656,414
EXPENDITURES
Current:
General government 854,345 854,345
Public safety 6,637,764 6,637,764
Transportation 2,441,830 2,441,830
Economic environment 11,707,245 11,707,245
Human services 1,183,835 1,183,835
Culture and recreation 2,054,265 2,054,265
Capital Outlay 5,292,163 5,292,163
Debt Service:
Principal 210,000 14,327,706 14,537,706
Interest 7,063 10,354,239 10,361,302
Other 86,069 86,069
Total expenditures 30,388,510 24,768,014 55,156,524
Excess (deficiency) of revenues over
(under) expenditures (3,667,326) (18,832,784) (22,500,110)
OTHER FINANCING SOURCES (USES)
Proceeds of debt issuance 65,400 65,400
Sale of capital assets 200 200
Transfers in 6,779,223 20,526,585 27,305,808
Transfers out (4,155,983) (1,593,492) (5,749,475)
Total other financing sources 2,623,440 18,998,493 21,621,933
Net change in fund balances (1,043,886) 165,709 (878,177)
Fund balances - beginning of year 40,408,013 7,953,645 48,361,658
Fund balances - end of year $ 39,364,127 $ 8,119,354 $ 47,483,481
97
CITY OF MIAMI BEACH, FLORIDA
COMBINING STATEMENT OF NET ASSETS
NONMAJOR ENTERPRISE FUNDS
September 30, 2010
Miami Beach Miami Beach
Redevelopment Redevelopment
Sanitation Agency's Agency's
Fund Parking Fund Leasing Fund Totals
ASSETS
Current assets:
Cash and investments $ 10,619,513 $ 8,822,622 $ 5,478,366 $ 24,920,501
Accounts receivable (net of
allowance for uncollectibles) 634,265 4,351 339,954 978,570
Due from other funds 79,043 24,004 103,047
Prepaid expenses 7,000 46,385 53,385
Total current assets 11,332,821 8,857,977 5,864,705 26,055,503
Noncurrent assets:
Cash and investments
Customer deposits 8,262 70,216 78,478
Deferred charges 1,588 1,588
Capital assets:
Land 405,680 2,793,051 210,230 3,408,961
Buildings and structures 542,339 11,955,752 899,896 13,397,987
Machinery and equipment 3,283,176 216,371 9,404 3,508,951
Construction in progress 407,298 112,701 441,765 961,764
Less accumulated depreciation (2,472,045) (4,647,074) (353,932) (7,473,051)
Total capital assets (net of
accumulated depreciation) 2,166,448 10,430,801 1,207,363 13,804,612
Total noncurrent assets 2,168,036 10,439,063 1,277,579 13,884,678
Total assets 13,500,857 19,297,040 7,142,284 39,940,181
LIABILITIES
Current liabilities:
Accounts payable 452,924 197,619 650,543
Accrued expenses 238,217 648 238,865
Due to other funds 1,397 39,445 2,794 43,636
Due to other governments 2,561 907 3,468
Loan payable 111,508 111,508
Accrued compensated absences 288,320 288,320
Unearned revenue 39,050 39,050
Total current liabilities 1,092,366 279,323 3,701 1,375,390
Noncurrent liabilities:
Deposits 8,262 70,216 78,478
Accrued compensated absences 332,421 332,421
Environmental remediation liability 1,000,000 1,000,000
Loan payable 422,958 422,958
Total noncurrent liabilities 1,755,379 8,262 70,216 1,833,857
Total liabiIities 2,847,745 287,585 73,917 3,209,247
NET ASSETS
Invested in capital assets, net of
related debt 1,631,982 10,430,801 1,207,363 13,270,146
Unrestricted 9,021,130 8,578,654 5,861,004 23,460,788
Total net assets $ 10,653,112 $ 19,009,455 $ 7,068,367 $ 36,730,934
103
CITY OF MIAMI BEACH, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
NONMAJOR ENTERPRISE FUNDS
For the Fiscal Year Ended September 30, 2010
Miami Beach Miami Beach
Redevelopment Redevelopment
Sanitation Agency's Agency's
Fund Parking Fund Leasing Fund Totals
Operating revenues:
Charges for services $ 6,409,016 $ 2,160,430 $ $ 8,569,446
Permits, rentals, and other 6,987,288 548,923 669,308 8,205,519
Total operating revenues 13,396,304 2,709,353 669,308 16,774,965
Operating expenses:
Personal services 8,090,038 8,090,038
Operating supplies 41,574 9,293 50,867
Contractual services 3,928,058 1,499,234 60,631 5,487,923
Utilities 42,553 60,376 102,929
Internal charges 1,457,963 1,457,963
Depreciation 305,554 450,824 30,854 787,232
Administrative fees 877,461 124,606 33,523 1,035,590
Amortization 440 440
Other operating 1,775,222 72,602 1,847,824
Total operating expenses 16,518,863 2,216,935 125,008 18,860,806
Operating income (3,122,559) 492,418 544,300 (2,085,841)
Nonoperating revenues
(expenses):
Interest and fiscal charges (15,342) (15,342)
Gain (Loss) on disposal of
capital assets 23,813 23,813
Interest income 215,315 20,964 13,333 249,612
Total nonoperating expenses 223,786 20,964 13,333 258,083
Income before contributions
and transfers (2,898,773) 513,382 557,633 (1,827,758)
Transfers in 952,528 952,528
Transfers out (5,736) (5,736)
Change in net assets (1,951,981) 513,382 557,633 (880,966)
Total net assets - beginning 12,605,093 18,496,073 6,510,734 37,611,900
Total net assets - ending $ 10,653,112 $ 19,009,455 $ 7,068,367 $ 36,730,934
104
CITY OF MIAMI BEACH, FLORIDA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
For the Fiscal Year Ended September 30, 2010
Miami Beach Miami Beach
Redevelopment Redevelopment
Sanitation Agency's Agency's
Fund Parking Fund Leasing Fund Totals
Cash flows from operating activities:
Cash received from customers $ 8,709,998 $ 2,716,413 $ 743,467 $ 12,169,878
Cash paid to suppliers (5,159,421) (1,429,020) (52,601) (6,641,042)
Cash paid to employees (8,033,820) (8,033,820)
Internal activity-payments to other funds (2,335,424) (170,542) (30,729) (2,536,695)
6,987,288 6,987,288
Other operating
Net cash provided by (used in) operating activities 168,621 1,116,851 660,137 1,945,609
Cash flows for non-capital financing activities:
Transfers in 952,528 952,528
Transfers out (5,736) (5,736)
Net cash provided by non-capital financing
activities 946,792 946,792
Cash flows from capital and related financial
activities:
Loan proceeds 118,434 118,434
Repayment of loan (109,420) (109,420)
Interest and fiscal charges (15,582) (15,582)
Purchase of capital assets (329,955) (1,920) (331,875)
Proceeds from sale of capital assets 29,956 29,956
Net cash used in capital and related
financial activities (306,567) (1,920) (308,487)
Cash flows from investing activities:
Interest on investments 215,315 20,964 13,333 249,612
Net cash provided by investing activities 215,315 20,964 13,333 249,612
Net increase in cash and investments 1,024,161 1,135,895 673,470 2,833,526
Cash and investments - beginning of year 9,595,352 7,694,989 4,875,112 22,165,453
Cash and investments - end of year $ 10,619,513 $ 8,830,884 $ 5,548,582 $ 24,998,979
Classified as:
Current assets $ 10,619,513 $ 8,822,622 $ 5,478,366 $ 24,920,501
Restricted assets 8,262 70,216 78,478
Total cash and investments $ 10,619,513 $ 8,830,884 $ 5,548,582 $ 24,998,979
(continued)
105
CITY OF MIAMI BEACH, FLORIDA
RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY
OPERATING ACTIVITIES
NONMAJOR ENTERPRISE FUNDS
For the Fiscal Year Ended September 30, 2010
(continued)
Miami Beach Miami Beach
Redevelopment Redevelopment
Sanitation Agency's Agency's
Fund Parking Fund Leasing Fund Totals
Operating income (loss) $ (3,122,559) $ 492,418 $ 544,300 $ (2,085,841)
Adjustments to reconcile operating income
(loss) to cash provided by (used in) operating activities:
Depreciation and amortization 305,994 450,824 30,854 787,672
Provision for uncollectible accounts 83,517 (18,708) 64,809
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (21,351) 82,837 61,486
(Increase) decrease in due from other governments 724 405 1,129
(Increase) decrease in due from other funds 2,238,816 (24,004) 2,214,812
(Increase) decrease in prepaid expense 10,476 10,476
Increase (decrease) in accounts payable (429,449) 137,459 (3,758) (295,748)
Increase (decrease) in accrued expenses 64,494 29 64,523
Increase (decrease) in deposits 1,075 10,030 11,105
Increase (decrease) in due to other governments 2,561 907 3,468
Increase (decrease) in due to other funds 1,397 26,666 2,794 30,857
Increase (decrease) in environmental remediation liability 1,000,000 1,000,000
Increase (decrease) in deferred revenues 29,099 29,099
Increase (decrease) in accrued compensated
absences 47,762 47,762
Total adjustments 3,291,180 624,433 115,837 4,031,450
Net cash provided by (used in) operating activities $ 168,621 $ 1,116,851 $ 660,137 $ 1,945,609
106
CITY OF MIAMI BEACH, FLORIDA
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
September 30, 2010
Fleet Property Central Risk Health
Management Management Services Insurance Insurance Communications
Fund Fund Fund Fund Fund Fund Total
ASSETS
Current assets:
Cash and investments $ 4,003,684 $ 877,011 $ 220,344 $ 15,299,332 $ 1,693,863 $ 7,015,808 $ 29,110,042
Cash with fiscal agent 250,000 250,000
Accounts receivable, net 21,518 3,214 4,013 114,522 1,758 145,025
Due from other funds 4,988 105,064 807 15,631 909,566 15,688 1,051,744
Prepaid expenses 1,263,617 1,263,617
Inventories 171,017 97,289 14,029 282,335
Total current assets 4,201,207 1,082,578 239,193 16,828,580 2,717,951 7,033,254 32,102,763
Noncurrent assets:
Deferred charges 35,986 42,550 78,536
Capital assets:
Land 608,520 608,520
Buildings and structures 2,171,959 19,276 2,191,235
Machinery and equipment 26,723,702 3,269,627 131,943 348,450 35,197,291 65,671,013
Construction in progress 476,550 476,550
Less accumulated depreciation (20,281,856) (2,489,358) (112,680) (213,526) (27,899,506) (50,996,926)
Total capital assets (net of accumulated
depreciation) 9,222,325 799,545 19,263 134,924 7,774,335 17,950,392
Total noncurrent assets 9,258,311 799,545 19,263 134,924 7,816,885 18,028,928
Total assets 13,459,518 1,882,123 258,456 16,963,504 2,717,951 14,850,139 50,131,691
LIABILITIES
Curent liabilities:
Accounts payable 547,176 144,591 46,082 116,901 680,399 480,477 2,015,626
Retainage payable 16,560 16,560
Accrued expenses 53,908 91,238 7,717 68,625 2,943 140,871 365,302
Due to other funds 996 315,054 200,094 516,144
Accrued compensated absences 64,755 172,457 18,686 22,214 2,226 134,926 415,264
Loan payable 1,656,001 41,811 622,526 2,320,338
Pending insurance claims 5,970,000 1,696,173 7,666,173
Total current liabilities 2,338,400 451,093 72,485 6,492,794 2,581,835 1,378,800 13,315,407
Noncurrent liabilities:
Accrued compensated absences 128,645 29,590 17,529 53,301 20,146 489,263 738,474
Loan payable 3,792,788 233,930 2,602,182 6,628,900
Pending insurance claims 3,880,921 3,880,921
Insurance claims incurred but not reported 13,347,202 13,347,202
Total noncurrent liabilities 3,921,433 263,520 17,529 17,281,424 20,146 3,091,445 24,595,497
Total liabilities 6,259,833 714,613 90,014 23,774,218 2,601,981 4,470,245 37,910,904
NET ASSETS
Invested in capital assets, net of related debt 3,773,536 523,804 19,263 134,924 4,549,627 9,001,154
Unrestricted 3,426,149 643,706 149,179 (6,945,638) 115,970 5,830,267 3,219,633
Total net assets $ 7,199,685 $ 1,167,510 $ 168,442 $ (6,810,714) $ 115,970 $ 10,379,894 $ 12,220,787
See accompanying independent auditors' report
107
CITY OF MIAMI BEACH, FLORIDA
CO M BINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
For the Fiscal Year Ended September 30, 2010
Fleet Property Central Risk Health
Management Management Services Insurance Insurance Communications
Fund Fund Fund Fund Fund Fund Total
Operating revenues:
Charges for services $ 7,367,595 $ 8,112,432 $ 1,007,859 $ 16,829,950 $ 16,090,734 $ 12,869,974 $ 62,278,544
Miscellaneous 158,111 747,751 752,354 1,595,558 3,253,774
Total operating revenues 7,525,706 8,112,432 1,007,859 17,577,701 16,843,088 14,465,532 65,532,318
Operating expenses:
Personal services 1,753,464 4,079,430 354,678 555,853 112,116 4,724,492 11,580,033
Operating supplies 3,358,890 675,597 607 1,962 114,483 4,151,539
Contractual services 143,141 1,522,933 334,263 725,442 1,003,284 3,512,572 7,241,635
Utilities 66,207 777,773 2,114 514 1,454,463 2,301,071
Internal charges 539,156 750,997 104,721 24,092 702,207 2,121,173
Administrative fees 567,231 567,231
Amortization 10,411 5,683 16,094
Depreciation 2,986,353 255,476 6,355 63,241 3,600,082 6,911,507
Insurance 9,737,711 818,023 10,555,734
Claims and judgements 3,923,995 16,958,487 20,882,482
Other operating 50,246 64,965 39,381 95,812 282,528 532,932
Total operating expenses 8,907,868 8,127,171 842,119 15,695,853 18,891,910 14,396,510 66,861,431
Operating income (loss) (1,382,162) (14,739) 165,740 1,881,848 (2,048,822) 69,022 (1, 329,113)
Nonoper at ing revenues (expenses):
Interest and fiscal charges (187,539) (12,009) (121,983) (321,531)
Gain (loss) on sale of
capital assets 98,939 5,537 (9,975) (4,979) 89,522
Interest income 86,002 13,409 1,535 295,841 93,913 490,700
Total nonoperating revenues
(expenses) (2,598) 6,937 1,535 285,866 (33,049) 258,691
Income (loss) before contributions
and transfers (1,384,760) (7,802) 167,275 2,167,714 (2,048,822) 35,973 (1,070,422)
Capital contributions 62,410 237,687 300,097
Transfers in 10,401 864,188 874,589
Transfers out (13,759) (4,750) (2,704) (4,233) (133,993) (159,439)
Change in net assets (1,336,109) (12,552) 164,571 2,173,882 (2,048,822) 1,003,855 (55,175)
Net assets--beginning 8,535,794 1,180,062 3,871 (8,984,596) 2,164,792 9,376,039 12,275,962
Net assets--ending $ 7,199,685 $ 1,167,510 $ 168,442 $ (6,810,714) $ 115,970 $ 10,379,894 $ 12,220,787
108
CITY OF MIAMI BEACH, FLORIDA
COMBINING STATEMENT OF CASH FLOWS - INTERNAL SERVICE FUNDS
INCREASE (DECREASE) IN CASH AND INVESTMENTS
For the Fiscal Year Ended September 30, 2010
Fleet Property Central Risk Health
Management Maintenance Services Insurance Insurance Communications
Fund Fund Fund Fund Fund Fund Totals
Cash flows from operating activities:
Cash received from users $ 7,373,468 $ 8,110,941 $ 1,013,135 $ 16,829,950 $ 16,063,725 $ 12,867,891 $ 62,259,110
Cash paid to suppliers (4,175,732) (3,186,847) (355,658) (13,056,485) (130,122) (5,625,147) (26,529,991)
Cash paid to employees (1,732,193) (4,141,577) (378,576) (572,484) (86,801) (4,779,453) (11,691,084)
Cash paid for claims and judgements (5,298,712) (15,262,314) (20,561,026)
Internal charges-payments to other
funds (539,156) (764,891) (104,721) (591,323) (702,207) (2,702,298)
Other operating 291,228 18,616 747,751 752,354 1,595,558 3,405,507
Net cash provided by (used in)
operating activities 1,217,615 36,242 174,180 (1,941,303) 1,336,842 3,356,642 4,180,218
Cash flows for non-capital financing
activities:
Transfers in 10,401 864,188 874,589
Transfers out (13,759) (4,750) (2,704) (4,233) (133,993) (159,439)
Net cash provided by (used in)
non-capital financing activities (13,759) (4,750) (2,704) 6,168 730,195 715,150
Cash flows from capital and related
financial activities:
Loan proceeds 869,650 869,650
Repayment of loan (1,801,586) (42,812) (604,690) (2,449,088)
Interest and fiscal charges (195,823) (12,009) (127,366) (335,198)
Purchase of capital assets (1,583,358) (37,539) (10,401) (1,764,817) (3,396,115)
Proceeds from sale of capital assets 115,215 5,537 2,853 123,605
Net cash used in capital and
related financial activities (2,595,902) (86,823) (7,548) (2,496,873) (5,187,146)
Cash flows from investing activities:
Interest on investments 86,002 13,409 1,534 295,841 93,913 490,699
Net cash provided by investing
activities 86,002 13,409 1,534 295,841 93,913 490,699
Net increase (decrease) in cash
and investments (1,306,044) (41,922) 173,010 (1,646,842) 1,336,842 1,683,877 198,921
Cash and investments - beginning
of year 5,309,728 918,933 47,334 17,196,174 357,021 5,331,931 29,161,121
Cash and investments - end of year $ 4,003,684 $ 877,011 $ 220,344 $ 15,549,332 $ 1,693,863 $ 7,015,808 $ 29,360,042
Classified as:
Cash and investments-current $ 4,003,684 $ 877,011 $ 220,344 $ 15,549,332 $ 1,693,863 $ 7,015,808 $ 29,360,042
Non-cash transactions affecting
financial position:
Capital contributions of capital assets $ 62,410 $ $ $ $ $ 237,687 $ 300,097
(continued)
109
CITY OF MIAMI BEACH, FLORIDA
COM BI NING STATEMENT OF CASH FLOWS - INTERNAL SERVICE FUNDS
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
For the Fiscal Year Ended September 30, 2010
(continued)
Fleet Property Central Risk Health
Management Maintenance Services Insurance Insurance Communications
Fund Fund Fund Fund Fund Fund Totals
Operating income (loss) $ (1,382,162) $ (14,739) $ 165,740 $ 1,881,848 $ (2,048,822) $ 69,022 $ (1,329,113)
Adjustments to reconcile operating
income (loss) to net cash provided by
(used in) operating activities:
Depreciation and amortization 2,996,764 255,476 6,355 63,241 3,605,765 6,927,601
Provision for uncollectible accounts 5,873 (1,491) (552) 1,758 5,588
Changes in assets and liabilities:
(Increase) decrease in inventories (7,027) 25,690 2,844 21,507
(Increase) decrease in accounts
receivable 128,871 18,616 5,359 (26,457) 761 127,150
(Increase) decrease in due from
other funds 4,246 (13,894) (83) 103,724 2,076,500 (4,602) 2,165,891
Increase in prepaid expense 34,107 34,107
Increase (decrease) in accounts
payable (566,781) (172,265) 19,007 (66,295) 399,845 (261,101) (647,590)
Increase (decrease) in retainage
payable 16,560 16,560
Increase (decrease) in accrued
compensated absences 21,055 (44,773) (24,033) (15,873) 22,371 (48,923) (90,176)
Increase (decrease) in due to
other funds 996 (2,596,427) (785,160) (3,380,591)
Increase (decrease) in pending
insurance claims (732,695) 1,696,173 963,478
(Decrease) in insurance claims
incurred but not reported (642,022) (642,022)
Increase (decrease) in accrued
expenses 216 (17,374) (1,009) 29,089 2,944 (6,038) 7,828
Total adjustments 2,599,777 50,981 8,440 (3,823,151) 3,385,664 3,287,620 5,509,331
N et cash provided by (used in) operating
activities $ 1,217,615 $ 36,242 $ 174,180 $ (1,941,303) $ 1,336,842 $ 3,356,642 $ 4,180,218
110
CITY OF MIAMI BEACH, FLORIDA
CO M BINING STATEMENT OF PLAN NET ASSETS
FIDUCIARY FUNDS
September 30, 2010
Retirement
System for Postemployment
Employees' Firefighters Firemen's Policemen's Benefits Other
Retirement and Relief and Relief and Than Pension
System Police Officers Pension Fund * Pension Fund (OPEB) Totals
Assets
Cash and cash equivalents $ 5,978,247 $ 20,000 $ 269,270 $ 105,830 $ 10,683,612 $ 17,056,959
Accrued interest receivable 571,187 2,653,468 55,234 28,159 3,308,048
Contribution receivable 242,998 621,194 1,466,064 2,330,256
Other receivables 50,125 50,125
Prepaid insurance 5,450 5,450
Investments, at fair value:
Short-term investments 540,416 540,416
U.S. Government securities 17,352,665 42,640,262 1,259,324 832,416 62,084,667
Corporate bonds and notes 24,301,164 166,762,945 3,153,153 1,434,175 195,651,437
Common stocks and index funds 44,081,857 224,698,351 4,845,177 2,721,784 276,347,169
Aggregated bond funds 70,018,731 99,875 70,118,606
Aggregated equity funds 217,421,436 75,758,910 293,180,346
Money market funds 4,970,326 4,970,326
Real estate funds 15,611,166 15,611,166
Mutual funds self-directed DROP participants 2,562,537 9,898,028 12,460,565
Total investments 375,738,390 540,339,988 9,357,529 5,528,791 930,964,698
Total assets 382,580,947 543,634,650 11,148,097 5,668,230 10,683,612 953,715,536
Liabilities
Accounts payable 3,757,782 10,139,134 13,000 13,909,916
Total liabilities 3,757,782 10,139,134 13,000 13,909,916
Net Assets
Held in trust for pension benefits $ 378,823,165 $ 533,495,516 $ 11,148,097 $ 5,655,230 $ 10,683,612 $ 939,805,620
* Balance at June 30, 2010
111
CITY OF MIAMI BEACH, FLORIDA
COMBINING STATEMENT OF CHANGES IN PLAN NET ASSETS
FIDUCIARY FUNDS
For the Fiscal Year Ended September 30, 2010
Retirement
System for Postemployment
Employees' Firefighters Firemen's Policemen's Benefits Other
Retirement and Relief and Relief and Than Pension
System Police Officers Pension Fund * Pension Fund (OPEB) Totals
Additions:
Contributions -
Employer $ 17,137,394 $ 23,283,269 $ $ $ 1,870,000 $ 42,290,663
Employee 6,846,512 4,914,418 11,760,930
State of Florida 120,549 1,416,184 532,436 2,069,169
Buybacks/transfers from other systems 1,075,434 1,075,434
Other 3,535 343 3,878
Total contributions 23,983,906 29,393,670 1,419,719 532,779 1,870,000 57,200,074
Investment income -
Net increase/(decrease) in fair value of investments 35,791,125 39,329,217 517,806 248,448 75,886,596
Interest and dividends income 3,989,041 15,819,863 278,716 138,590 173,195 20,399,405
39,780,166 55,149,080 796,522 387,038 173,195 96,286,001
Investment management expenses (791,421) (2,247,008) (34,149) (18,274) (3,090,852)
Net investment income/(loss) 38,988,745 52,902,072 762,373 368,764 173,195 93,195,149
Total additions/(reduction) 62,972,651 82,295,742 2,182,092 901,543 2,043,195 150,395,223
Deductions:
Benefit paid 31,872,195 42,294,293 1,128,318 374,339 75,669,145
Contributions refunded 579,709 20,666 600,375
Transfers to other systems 408,164 408,164
Administrative expenses 705,482 697,141 30,541 81,214 1,514,378
Total deductions 33,565,550 43,012,100 1,158,859 455,553 78,192,062
Net increase/(decrease) 29,407,101 39,283,642 1,023,233 445,990 2,043,195 72,203,161
Net assets held in trust for pension benefits -
beginning of year 349,416,064 494,211,874 10,124,864 5,209,240 8,640,417 867,602,459
Net assets held in trust for pension benefits -
end of year $ 378,823,165 $ 533,495,516 $ 11,148,097 $ 5,655,230 $ 10,683,612 $ 939,805,620
* For the period ended June 30, 2010
112
CITY OF MIAMI BEACH, FLORIDA
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For the Fiscal Year Ended September 30, 2010
September 30, September 30,
2009 Additions Deductions 2010
Assets
Cash and investments $ 6,888,946 $ 69,206,388 $ 69,397,204 $ 6,698,130
Accounts receivable 84,654 199,984 169,976 114,662
Total Assets $ 6,973,600 $ 69,406,372 $ 69,567,180 $ 6,812,792
Liabilities
Accounts payable $ 128,251 $ 54,153,787 $ 54,139,761 $ 142,277
Deposits 6,845,349 66,619,211 66,794,045 6,670,515
Total Liabilities $ 6,973,600 $ 120,772,998 $ 120,933,806 $ 6,812,792
113
CITY OF MIAMI BEACH, FLORIDA
STATEMENT OF NET ASSETS
DISCRETELY PRESENTED COMPONENT UNITS
September 30, 2010
Miami Beach Miami Beach
Visitor and Health
Convention Facilities
Authority Authority Total
Assets
Cash and investments $ 2,619,836 $ 293,689 $ 2,913,525
Accounts receivable 209,819 105,148 314,967
Capital assets, net of accumulated
depreciation 33,045 33,045
Total assets 2,862,700 398,837 3,261,537
Liabilities
Accounts payable 2,250 2,250
Accrued expenses 281,278 281,278
Total liabilities 283,528 283,528
Net Assets
Invested in capital assets 33,045 33,045
Unrestricted 2,546,127 398,837 2,944,964
Total net assets $ 2,579,172 $ 398,837 $ 2,978,009
114
CITY OF MIAMI BEACH, FLORIDA
STATEMENT OF ACTIVITIES
DISCRETELY PRESENTED COMPONENT UNITS
For the Fiscal Year Ended September 30, 2010
Program Net (Expense) Revenue and
Revenues Changes in Net Assets
Operating Visitor and Health
Grants and Convention Facilities
Expenses Contributions Authority Authority Totals
Miami Beach Visitor and
Convention Authority
Cultural - grant program $ 1,104,486 $ 30,000 $ (1,074,486) $ $ (1,074,486)
General administrative 270,560 (270,560) (270,560)
Total Miami Beach Visitor
and Convention Authority 1,375,046 30,000 (1,345,046) (1,345,046)
Miami Beach Health
Facilities Authority
General administrative 107,675 (107,675) (107,675)
Total component units $ 1,482,721 $ 30,000 (1,452,721)
General revenues:
Resort tax allocation 1,661,943 1,661,943
Financing fees 105,148 105,148
Interest 15,549 44 15,593
Total general revenues 1,677,492 105,192 1,782,684
Change in net assets 332,446 (2,483) 329,963
Net assets - beginning 2,246,726 401,320 2,648,046
Net assets - ending $ 2,579,172 $ 398,837 $ 2,978,009
115
STATISTICAL SECTION
STATISTICAL SECTION
This part of the City of Miami Beach’s comprehensive annual financial report
presents detailed information as a context for understanding what the information
in the financial statements, note disclosures, and required supplementary
i nformation says about the government’s overall financial health.
Contents
Financial Trends
These schedules contain trend information to help the reader
understand how the government’s financial performance and well -
bein g have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the
government’s most significant local revenue source, the property tax.
Debt Capacity
These schedules present information to help the reader assess the
affordability of the government’s current level of outstanding debt and
the government’s ability to issue additional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help
the reader understand how the information in the government’s
financial report relates to the services the government provides and
the activities it performs.
Operating Information
These schedules contain service and infrastructure data to help the
reader understand how the information in the government’s financial
report relates to the services the government provides and the
activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived
from the comprehensive annual financial reports for the relevant year.
1 16
CITY OF MIAMI BEACH, FLORIDA
CHANGES IN NET ASSETS,
LAST NINE FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
2002 2003 2004 2005 2006 2007 2008 2009 2010
Expenses
Governmental activities:
$25,829,313 $23,628,047 $28,795,043 $39,320,007 $43,639,010 $48,188,199 $44,608,072 $44,331,119 $44,772,492
General government
91,078,245 84,602,292 100,472,672 110,402,334 121,678,913 133,068,393 149,953,945 155,153,733 164,903,020
Public safety
2,727,148 2,895,202 2,740,147 4,377,740 4,088,447 2,418,815 1,684,934 2,237,314 2,654,793
Physical environment
9,529,725 8,933,603 11,602,611 10,665,897 693,673 10,187,046 9,733,789 8,927,038 10,229,616
Transportation
7,557,709 8,501,119 4,053,198 6,975,706 232,748 22,006,137 4,293,175 3,934,183 12,569,809
Economic environment
1,546,396 1,495,853 1,480,826 2,323,536 1,839,731 1,438,987 1,721,151 1,606,517 1,714,419
Human services
29,579,682 31,672,707 36,733,315 36,736,715 40,288,229 38,301,266 39,430,360 41,569,779 42,088,492
Culture and recreation
16,051,074 16,334,853 17,369,780 19,284,911 12,991,581 13,570,730 12,476,916 11,767,919 11,294,742
Interest on long-term debt
181,698,026 180,264,942 203,247,592 230,086,846 225,452,332 269,179,573 263,902,342 269,527,602 290,227,383
Total governmental activities expenses
Business-type activities:
3,968,799 4,020,379 4,891,358 4,665,458 4,353,932 5,421,124 4,980,583 3,755,854 4,116,313
Stormwater
15,615,833 14,939,612 17,266,977 17,672,606 20,974,282 21,124,609 20,930,577 23,467,862 26,677,078
Water
24,948,514 25,460,076 23,854,749 25,074,612 23,747,056 25,818,687 26,619,914 25,425,037 28,895,679
Sewer
16,739,868 15,172,305 17,459,943 19,147,189 20,378,613 22,826,900 24,612,370 25,141,478 26,903,927
Parking
15,615,399 13,469,379 15,022,623 16,885,954 18,139,037 18,365,554 17,788,549 14,743,596 13,520,338
Convention Center
7,756,058 7,270,318 8,855,196 10,620,399 17,005,334 14,324,409 15,860,607 15,784,821 19,138,483
Other
84,644,471 80,332,069 87,350,846 94,066,218 104,598,254 107,881,283 110,792,600 108,318,648 119,251,818
Total business-type activities expenses
266,342,497 260,597,011 290,598,438 324,153,064 330,050,586 377,060,856 374,694,942 377,846,250 409,479,201
Total primary government expenses
Program Revenues
Governmental activities:
Charges for services:
$6,459,266 $13,269,829 $19,463,899 $17,266,876 $19,464,495 $30,405,003 $30,588,011 $47,607,219 $43,225,083
General government
14,471,102 1,360,094 16,299,872 18,255,615 20,452,808 20,074,100 23,485,245 5,668,803 5,707,217
Public safety
3,798,117 1,118,889 4,634,957 5,532,048 5,581,803 5,849,885 5,837,885 6,513,589 6,852,311
Culture and recreation
9,756,567 26,317,700 6,231,030 5,714,406 65,111 55,028 34,470 20,305 16,040
Other
12,003,130 9,526,279 17,874,829 24,260,946 45,361,039 40,520,024 25,591,885 18,890,498 30,959,673
Operating grants and contributions
2,529,706 3,929,445 1,719,812 1,718,649 2,464,239 1,883,176 14,732,625 4,766,094 8,313,962
Capital grants and contributions
55,828,451 48,711,673 66,224,399 72,748,540 93,389,495 98,787,216 100,270,121 83,466,508 95,074,286
Total governmental activities program revenue
Business-type activities:
Charges for services:
7,622,002 5,230,566 7,833,014 7,872,251 7,415,170 7,357,399 7,109,411 9,671,731 11,212,773
Stormwater
17,925,175 17,749,061 20,210,378 20,014,509 20,131,642 21,653,555 23,080,564 30,141,576 32,941,405
Water
26,337,494 25,604,163 25,476,403 28,597,701 27,492,458 25,816,726 28,953,077 32,906,403 35,786,811
Sewer
19,599,639 19,187,199 19,688,121 21,107,793 22,118,981 25,063,379 25,626,973 28,267,558 30,014,763
Parking
7,067,189 7,557,445 7,544,309 8,330,757 9,486,466 10,167,750 9,044,165 6,884,276 6,898,642
Convention Center
6,115,640 6,661,646 6,386,667 7,449,685 7,465,516 7,956,217 10,038,593 10,758,578 9,787,677
Other
9,627,672 7,885,883 11,075,929 20,459,284 18,749,928 18,517,953 14,833,004 13,360,122 13,882,449
Operating grants and contributions
15,000,000
Capital grants and contributions
94,294,811 89,875,963 113,214,821 113,831,980 112,860,161 116,532,979 118,685,787 131,990,244 140,524,520
Total business-type activities program revenue
$138,587,636 $150,123,262 $179,439,220 $186,580,520 $206,249,656 $215,320,195 $218,955,908 $215,456,752 $235,598,806
Total primary government program revenue
Net (Expense)/Revenue
$(131,553,269) $(125,869,575) $(137,023,193) $(157,338,306) $(132,062,837) $(170,392,357) $(163,632,221) $(186,061,094) $(195,153,097)
Governmental activities
9,650,340 9,543,894 25,863,975 19,765,762 8,261,907 8,651,696 7,893,187 23,671,596 21,272,702
Business-type activities
$(122,009,375) $(116,219,235) $(111,159,218) $(137,572,544) $(123,800,930) $(161,740,661) $(155,739,034) $(162,389,498) $(173,880,395)
Total primary government net expense
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes
$63,314,474 $71,191,120 $79,064,889 $89,653,321 $120,679,428 $145,594,729 $131,585,285 $133,505,827 $119,990,444
Property taxes
24,002,336 21,021,618 27,406,669 32,112,039 34,265,010 36,595,885 38,100,260 37,412,291 42,394,976
Resort taxes
23,705,214 20,731,456 31,351,525 29,814,708 24,934,704 34,521,406 48,964,692 47,655,082 44,012,804
Tax increment
12,481,722 13,348,286 12,436,407 12,785,676 12,998,955 13,098,395 13,785,849 9,225,871 9,975,273
Utility taxes
6,328,924 7,196,266
Communication service
3,259,541 3,216,121 3,663,374 3,598,803 9,258,301 3,662,796 3,341,802 3,684,320 4,298,739
Local business tax
9,965,739 8,919,382 107,920 224,200 169,664 118,640 1,304,665 894,995 6,653,210
Miscellaneous
3,399,593 5,300,943 4,649,415 8,163,573 13,696,366 22,674,807 14,715,094 10,899,704 3,102,439
Unrestricted investment earnings
(25,839,322) (213,893) 257,928 220,559 28,837 89,522
Gain or (loss) on disposal of capital assets
1,863,604 1,336,584 4,421,623 925,797 (654,166) (3,310,095) (252,411) (3,420,189) (14,625,515)
Transfers
149,868,869 136,974,971 163,101,822 151,438,795 215,348,262 253,214,491 251,765,795 247,083,004 222,220,816
Total governmental activities
Business-type activities:
2,405,168 2,357,697 2,619,643
Tax increment
6,536,766 5,581,455 6,344,916 6,895,744 6,403,497 9,930,008 5,871,523 2,941,879 2,083,080
Unrestricted investment earnings
(6,871) (7,465) (12,949)
Loss on disposal of capital assets
(1,863,604) (1,336,584) (4,421,623) (925,797) 654,166 3,310,095 252,411 3,420,189 14,625,515
Transfers
4,673,162 4,238,000 1,923,293 5,969,947 7,057,663 13,227,154 8,481,631 8,767,236 19,320,773
Tota; business-type activities
$141,212,971 $154,542,031 $165,025,115 $157,408,742 $222,405,925 $266,441,645 $260,247,426 $255,850,240 $241,541,589
Total primary government
Change in Net Assets
$5,421,702 $23,999,294 $26,078,629 $(5,899,511) $83,285,425 $82,822,134 $88,133,574 $61,021,910 $27,067,719
Governmental activities
14,323,502 13,781,894 27,787,268 25,735,709 15,319,570 21,878,850 16,374,818 32,438,832 40,593,475
Business-type activities
$19,203,596 $38,322,796 $53,865,897 $19,836,198 $98,604,995 $104,700,984 $104,508,392 $93,460,742 $67,661,194
Total primary government
Note - GASB 34 requires the preparation of a Statement of Activities. The City implemented GASB 34 for the fiscal year
ended September 30, 2002, hence this statement is presented from 2002 forward and does not contain ten years of information.
118
CITY OF MIAMI BEACH, FLORIDA
DIRECT AND OVERLAPPING PROPERTY TAX RATES,
LAST TEN FISCAL YEARS
(rate per $1,000 of assessed value)
A
City of Miami Beach Direct RatesOverlapping Rates
Fiscal Yea r DebtTotalSchool
EndedOperatin g ServiceDirectDistrictCount y State
September 30,Milla g eMilla g eMilla g eMilla g eMilla g eMilla g eTotal
20017.3991.1568.5559.6176.7540.73825.664
20027.2991.0778.3769.3766.7160.73625.204
20037.2991.0238.3229.2526.7650.73625.075
20047.2990.8748.1739.1007.2400.73625.249
20057.4250.7488.1738.6877.1500.73624.746
20067.4810.5928.0738.4387.0350.73624.281
20077.3740.2997.6738.1056.8080.73623.322
20085.6560.2425.8987.9485.6710.65920.175
20095.6560.2385.8937.7975.9260.65920.275
20105.6560.2575.9137.9956.0050.65920.572
Source
: Miami-Dade County, Florida; Department of Property Appraisal
2010 Millage Table
Note:
The city's basic property tax rate may be increased only by a majority vote of the
city's residents. Rates for debt service are set based on each year's requirement.
A:
Overlapping rates are those of local and county governments that apply to owners
within the City of Miami Beach. Not all overlapping rates apply to all Miami Beach property
owners.
122
CITY OF MIAMI BEACH
RATIOS OF OUTSTANDING DEBT BY TYPE,
LAST TEN FISCAL YEARS
(in thousands of dollars)
Governmental Activities
Redevelopment
Sunshine Pension A gency Total
Gulf Breeze
General Obligation Resort Tax Revenue Government State Loan Obligation Tax Increment Other Governmental
Fiscal Year Bonds Bonds Loan Program Program Bonds Revenue Bonds Loans Payable Obligations Activities
FH A
$ $ $ $ $ $ $$ $
2001 50,985 3,685 47,145 48,485 103,510 263,769
6 , 6 7 8 3 , 2 8 1
200243,810 3,590 39,002 46,765 100,830 1,125 3,317244,704
6 , 2 6 5
2003 98,990 3,495 37,196 44,905 97,960 940 3,655292,976
5 , 8 3 5
2004 93,475 3,395 35,316 43,525 94,890 11,629 2,909290,529
5 , 3 9 0
2005 87,500 3,290 33,357 53,030 97,300 12,295 4,089295,791
4 , 9 3 0
2006 81,440 3,180 31,320 50,650 95,300 12,905 3,266282,516
4 , 4 5 5
2007 78,620 29,185 48,175 91,645 10,617 2,619264,826
3 , 9 6 5
2008 76,085 30,417 45,590 87,785 11,559 1,951256,842
3 , 4 5 5
2009 73,580 24,650 42,885 83,740 10,528 1,260239,573
2 , 9 3 0
237,152
2010 70,985 22,243 40,055 79,485 8,949 15,435
G
Business-type activities Total
Parking Percentage
Storm Water Water and Sewer Revenue Loan Capital Total Business Total Primary of Personal
Fiscal Year Revenue Bonds Revenue Bonds Bonds/Loan Payable Leases Activities Government Income Per Capita
C A D
$ $ $ $ $ $ $
2001 52,170 101,160 27,820 1,866 183,016 446,785 5.08
B
200250,712 97,455 34,396 1,320 184,766 429,470 18.44% 4.87
8 8 3
2003 49,864 95,055 33,166 795 179,631 472,607 19.57% 5.31
7 5 1
2004 48,976 95,531 31,879 240 177,248 467,777 18.46% 5.15
6 2 2
2005 48,049 89,876 30,537 169,023 464,814 17.03% 5.08
5 6 1
2006 47,076 113,839 29,132 190,542 473,058 15.79% 5.06
E
4 9 5
2007 46,130 110,610 27,769 184,854 449,680 14.48% 4.88
3 4 5
2008 45,075 107,154 26,241 179,505 436,347 12.90% 4.66
1 , 0 3 5
2009 43,970 103,439 24,639 173,181 412,754 12.23% 4.39
1 , 1 3 3
2010 42,645 129,437 22,960 196,262 433,414 4.67
B
1 , 2 2 0
Note
: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
Note
: Business-type activities outstanding debt is presented net of discount/premium .
ALoan began in fiscal year 2002 ENew debt issued during fiscal year 2006
BData not available FOutstanding bond principal in the amount of $3,060,000 was
CBond was issued in fiscal year 2000 defeased during fiscal year 2007
DLease started in fiscal year 2000 and ended in fiscal GIn 2010 an equipment lease purchase financing agreement was entered into
year 2004 HThe 1994 Sunshine State VRDS bonds were paid off in fiscal year 2010
125
CITY OF MIAMI BEACH, FLORIDA
REVENUE BOND COVERAGE,
LAST TEN FISCAL YEARS
Less: Debt Service
FiscalOperating Net available
YearRevenueExpensesRevenuePrincipalInterest Coverage
Parking Revenue Bonds
2001$22,208,213 $7,660,378 $14,547,835 $765,000 $1,412,526 6.68
200222,848,169 9,793,404 13,054,765 800,000 1,380,962 5.99
200323,342,582 11,161,339 12,181,243 1,268,988 1,681,861 4.13
200424,572,613 11,453,816 13,118,797 1,325,314 1,645,286 4.42
200529,449,732 14,191,842 15,257,890 1,380,268 1,586,530 5.14
200626,059,130 15,441,789 10,617,341 1,443,400 1,524,259 3.58
200731,570,712 17,740,936 13,829,776 1,510,176 1,458,821 4.66
200831,416,685 19,612,035 11,804,650 1,576,944 1,390,054 3.98
200933,478,489 19,908,198 13,570,291 1,648,712 1,318,222 4.57
201035,448,502 20,579,374 14,869,128 1,727,294 1,240,684 5.01
Revenue includes operating revenues and nonoperating interest income. Operating expenses does not include
Note:
interest, depreciation, amortization or administrative fees.
Water & Sewer Revenue Bonds
2001$48,275,631 $31,758,568 $16,517,063 $2,265,000 $5,652,704 2.09
200247,321,117 33,537,736 13,783,381 2,370,000 5,416,700 1.77
200347,969,148 32,658,124 15,311,024 2,480,000 5,304,122 1.97
200448,726,532 32,783,429 15,943,103 2,605,000 5,183,223 2.05
200554,104,716 35,626,830 18,477,886 2,735,000 5,052,972 2.37
200650,313,742 35,398,721 14,915,021 4,148,258 3.60
A
200751,181,355 36,816,705 14,364,650 3,285,000 5,466,855 1.64
200854,366,038 37,618,570 16,747,468 3,480,000 5,331,556 1.90
200964,360,255 38,982,808 25,377,447 3,740,000 5,187,155 2.84
201069,632,326 45,831,721 23,800,605 3,775,000 5,036,856 2.70
A - Bonds were refunded during fiscal year 2006, a principal payment was not paid because of such.
Revenue includes operating revenues and nonoperating interest income. Operating expenses does not include
Note:
interest, depreciation, amortization or administrative fees.
Stormwater Revenue Bonds
2002$7,741,767 $1,299,834 $6,441,933 $835,000 $2,736,421 1.80
200310,471,043 1,329,855 9,141,188 870,000 2,698,846 2.56
200410,750,958 1,794,927 8,956,031 910,000 2,659,696 2.51
200510,966,650 2,251,214 8,715,436 950,000 2,618,747 2.44
20069,583,080 1,967,624 7,615,456 995,000 2,575,997 2.13
200710,248,168 2,457,949 7,790,219 1,040,000 2,531,221 2.18
20088,493,071 3,189,531 5,303,540 1,085,000 2,484,422 1.49
200910,129,595 2,875,115 7,254,480 1,135,000 2,434,511 2.03
201011,444,244 2,716,689 8,727,555 1,190,000 2,381,166 2.44
Stormwater bonds were issued during fiscal year 2001.
Note:
Note: Revenue includes operating revenues and nonoperating interest income. Operating expenses does not include
interest, depreciation, amortization or administrative fees.
Redevelopment Agency Tax Increment Revenue Bonds
2001$32,505,683 $500,000 $32,005,683 $1,940,000 $7,136,216 3.53
200231,945,482 500,000 31,445,482 2,065,000 7,014,235 3.46
200336,861,453 500,000 36,361,453 2,195,000 6,882,689 4.01
200442,920,951 500,000 42,420,951 2,335,000 6,741,490 4.67
200548,671,776 500,000 48,171,776 2,485,000 6,590,163 5.31
200658,902,508 500,000 58,402,508 2,000,000 3,686,227 10.27
200767,755,835 500,000 67,255,835 3,655,000 4,704,013 8.05
200870,596,698 500,000 70,096,698 3,860,000 4,515,554 8.37
200970,858,394 500,000 70,358,394 4,045,000 4,329,697 8.40
201073,108,937 500,000 72,608,937 4,255,000 4,138,267 8.65
Revenue includes tax increment and resort tax pledged revenues of $42,293,353 in fiscal year 2010.
Note:
Operating expenditure is limited to $500,000.
128
CITY OF MIAMI BEACH, FLORID
A
COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEB
T
SEPTEMBER 30, 2010
DIRECT DEBT
General obligation indebtedness
Public improvement bonds (net of amount available)$70,195,935
Non-self-supporting indebtedness: (1)
Gulf Breeze Government Loan Program22,243,058
Pension Obligation Bonds40,055,000
Tax Increment Revenue Bonds79,485,000
141,783,058
Less: Reserve funds7,330,289
Total non-self-supporting indebtedness134,452,769
Total direct indebtedness 204,648,704
OVERLAPPING DEBT (2)
Miami-Dade County
Total general obligation indebtedness881,276,000
Percent applicable to City - 10.4415% (3)92,018,434
Total school district obligation indebtedness348,100,000
Percent applicable to City - 10.4415% (3)36,346,862
Total net non-self-supporting indebtedness2,308,901,786
Percent applicable to City - 10.4415% (3)241,083,980
Total overlapping debt 369,449,276
TOTAL DIRECT AND OVERLAPPING DEBT$574,097,980
(1) Excludes self-supporting debt obligations.
(2) All debt listed as Overlapping Debt is secured either solely from a tax source or from a combination of
self-supporting revenues and a tax source.
(3) Based upon 2010 assessed valuation figures for the City and Dade County.
129
CITY OF MIAMI BEACH
DEMOGRAPHIC AND ECONOMIC STATISTICS,
LAST TEN CALENDAR YEAR S
Miami-Dade County
Personal
Miami Income
Per Capita
Beach (thousands Bank Deposits
Personal Public School Unemployment
Year PopulationAuto Tags (Thousands)
of dollars) Income Enrollment Rate
A
2,420,074 25,626 40,543 5.3
2000 87,933
3 5 0 , 9 2 0
88,158 60,402 26,414 2,533,220 45,064 6.9
2001
3 5 9 , 3 1 3
88,972 62,665 27,147 1,916,980 51,297 7.7
2002
3 6 6 , 2 8 7
2003 90,846 64,631 27,891 2,008,064 56,264 7.8
3 6 5 , 8 2 9
91,540 68,583 29,817 2,094,012 62,368 4.7
2004
4 2 2 , 4 0 1
93,535 75,464 32,025 2,094,012 70,222 3.7
2005
4 2 7 , 4 4 9
92,145 80,112 33,712 2,183,782 73,205 3.3
2006
4 2 8 , 2 2 9
2007
93,721 85,978 36,081 2,187,394 74,987 3.1
4 3 1 , 1 8 4
2008 94,040 88,955 35,887 2,160,963 77,178 5.8
4 2 9 , 5 3 1
A A A
2009 2,074,138 10.7
92,833
4 2 7 , 0 3 4
Source:
Florida Statistical Abstract, 2010
A
Data not available
130
MIAMI-DADE COUNTY
PRINCIPAL EMPLOYERS,
CURRENT YEAR AND TEN YEARS AGO
Ten Largest Public Employers
2010 2000
Percentage
of Total
County
Employer Employees Rank Employees Rank
Employment
35,4691
M i a m i - D a d e C o u n t y P u b l i c S c h o o l s 4 8 , 5 7 1 1 4 . 3 7 %
Miami-Dade County 29,0002 30,0002
2 . 6 1
Federal Government 19,5003 3
1 . 7 5 1 8 , 2 7 6
Florida State Government 17,1004 4
1 . 5 4 1 8 , 1 0 0
Jackson Health System 12,5715 8,1915
1 . 1 3
Florida International University 8,0006 2,5917
0 . 7 2
Miami-Dade College 6,2007 2,3458
0 . 5 6
City of Miami 4,3098 3,4006
0 . 3 9
Homestead Air Force Base 2,7009
0 . 2 4
VA Medical Center 2,38510 2,0009
0 . 2 1
City of Miami Beach 1,70210
Ten Largest Private Employers
2010 2000
Percentage
of Total
County
Employees Rank Employees Rank
Employer Employment
University of Miami 16,0001 7,8003
1 . 4 4 %
Baptist Health South Florida 13,3762 7,5004
1 . 2 0
Publix Super Markets 10,8003 6
0 . 9 7 4 , 0 0 0
American Airlines 9,0004 1
0 . 8 1 9 , 0 0 0
Precision Response Corporation 5,0005 8,0002
0 . 4 5
Florida Power and Light 3,8406 3,8237
0 . 3 5
Carnival Cruise Lines 3,5007 3,7458
0 . 3 1
Winn Dixie Stores 3,4008 2,67210
0 . 3 1
Bellsouth/AT&T 3,1009 4,2405
0 . 2 8
Mount Sinai Health Center 3,00010 2,8689
0 . 2 7
Employer and employees information provided by the Beacon Council. Percentage of total County
Source:
employment was calculated based on total County employment of 1,111,473 as presented in the 2010 Florida
Statistical Abstract.
131
CITY OF MIAMI BEACH, FLORIDA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
LAST NINE FISCAL YEARS
Full-time Equivalent Employees as of September 30
Function/Program 200220032004200520062007200820092010
General government:
M a y o r a n d c o m m i s s i o n 2 1 2 0 2 0 2 0 2 0
2 0 1 9 1 9 1 9
City manager
1 4 1 4 1 3 1 3 1 3 1 3
1 1 1 1 1 0
Office of communications
2 2 2 2 8 9
8 6 5
Budget and performance improvement
1 9 1 8 1 8 2 0 2 0 2 1
1 9 1 9 1 8
Finance
4 3 4 3 4 3 4 3 4 5 4 6
3 9 3 7 3 7
Information technology
3 7 3 7 4 0 4 1 4 4 4 6
4 3 4 0 3 8
Human resource
s
1 9 1 8 1 6 1 7 1 7 1 8 1 6
1 7 1 5
Labor relations C
2 2 2 2 3 3
- -
Risk Management
7 6 6 6 6 6
6 6 6
City clerk
2 0 2 0 1 9 1 9 1 7 1 7
1 6 1 6 1 4
Procurement
1 0 1 0 9 9 9 1 0
1 0 9 9
City attorney
2 4 2 4 2 2 2 2 2 2 2 2
2 2 2 0 1 9
Economic Development and Cultural Arts:
E
Real Estate, Housing and Comm. Development
- - - - - - -
- 1 3
Economic development
9 9 8 8 7 7
6 5 -
A
Building
5 6 5 6 6 3 6 3 7 1 7 9
7 9 7 9 7 2
Planning
2 6 2 6 2 6 2 6 2 8 2 9
2 9 2 6 2 6
Tourism & cultural development
1 1 1 1 1 2 1 3 1 4 1 3
1 2 1 1 1 1
Bass museum
1 0 9 8 8 8 8
8 8 8
Operations:
D
Neighborhood services
6 5 6 8 6 3 6 3 6 5 6 7
6 0 5 6 -
Community Services
- - - - - - -
- 4
Code compliance
- - - - - - -
- 4 2
B
Parks & recreation
2 2 0 2 3 1 1 8 6 1 8 7 1 9 5 2 0 5 1 9 8
1 9 5 1 8 2
Public works
3 5 3 2 3 5 3 7 3 4 3 3
3 9 4 8 4 5
Sanitation
1 0 9 1 2 3 1 0 3 1 1 4 1 4 8 1 7 9 1 7 7
1 8 7 1 8 7
Property management
7 3 6 6 6 5 6 6 7 1 7 1
6 9 6 6 5 4
Capital improvement projects
2 4 2 4 2 4 2 7 3 1 3 1
3 1 3 2 3 5
Parking
1 0 7 1 0 9 1 0 6 1 0 8 1 1 1 1 1 6 1 2 0
1 1 8 1 1 7
Sewer
4 3 4 3 4 0 4 1 4 2 4 2
4 1 3 8 3 3
Stormwater
1 9 2 2 2 3 2 3 2 5 2 5
2 6 2 5 2 5
Water
7 2 7 2 7 1 6 9 6 9 6 9
6 3 5 9 5 4
Fleet management
2 8 2 8 2 5 2 4 2 4 2 4
2 3 2 1 2 1
Public safety:
Police - Officers 366
3 8 1 3 8 2 3 8 5 3 8 6 4 0 3 3 9 6 3 8 1
3 7 0
Police - Civilians
1 6 5 1 5 5 1 4 6 1 5 3 1 6 4 1 6 6 1 4 8
1 4 9 1 4 0
Fire - Officers
2 0 1 2 0 5 2 0 5 2 0 7 2 0 8 2 0 7 2 0 6
2 0 3 2 0 0
Fire - Civilians
1 7 1 8 1 8 1 7 2 3 2 1
2 3 2 7 2 6
B
Ocean rescue
7 7 6 8 6 8 7 6 7 6 7 6
7 6
Total
1 , 8 8 7 1 , 8 8 7 1 , 8 9 6 1 , 9 1 9 2 , 0 1 3 2 , 1 0 2 2 , 0 4 2
2 , 0 0 7 1 , 9 2 7
Source: City of Miami Beach Budget Department
Note: Data is not available in this format for years prior to 2002
A
The City added additional positions in the building department in 2004 to address the increased
volume of permit requests and provide better customer service.
B
Beach patrol was transferred from the Parks & Recreation department to become the Ocean
Rescue Division of the Fire department in 2004.
C
Labor Relations was transferred to Human Resources in 2009.
D
Neighboorhood Service was dissolved in 2009
E
Housing and Comm Development was part of Neighborhood services in 2009 which merged
with Economic development to become Real Estate, Housing and Comm Development
132
CITY OF MIAMI BEACH, FLORIDA
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST NINE FISCAL YEARS
Fiscal Year
Function/Program 2002 2003 2004 2005 2006 2007 2008 2009 2010
General government:
Mayor and commission
Ordinances approved 43 46 39 44
5 2 5 5 3 5 4 0 3 6
Resolutions approved 296 251 308 274
6 6 0 3 2 8 2 6 8 2 6 8 3 2 2
City manager
Responses to resident inquiries/complaints 692 540 575 545
6 5 4 6 8 0 6 5 0 6 5 0 6 1 2
Better Place Requests Open and Closed N/A N/A 21 15 4 10
1 0 1 2 2 3
Budget and performance improvement
Audits performed 266 242 272 263
3 9 3 3 6 7 3 1 7 2 5 8 2 5 4
Grants awarded $6,109,633 $3,410,086 $2,065,480$2,483,516$6,934,165$5,639,593
$ 2 , 5 2 9 , 2 7 0 $ 1 , 8 0 0 , 0 0 0 $ 1 , 1 8 6 , 4 6 4
Finance
Utility customer accounts 10,05910,04310,04410,057
1 0 , 7 5 0 1 0 , 0 0 0 1 0 , 5 0 0 1 0 , 5 0 0 1 0 , 5 0 0
Licenses issued 8,000 7,5418,650 7,748
6 , 4 0 0 6 , 5 0 0 6 , 6 0 0 6 , 5 0 0 7 , 3 3 0
Lien statements 3,942 2,4152,658 4,076
3 , 4 5 4 3 , 3 0 0 3 , 1 5 0 3 , 4 0 0 3 , 8 5 0
Annual resort tax accounts 1,119 1,0541,066 1,050
1 , 2 6 5 1 , 3 0 0 1 , 3 5 2 1 , 3 7 5 1 , 1 2 7
Better Place Requests Open and Closed N/A N/A 116 68 12 48
6 9 7 5 9 3
Human resources
Employees 1,870 1,9261,902 1,869
1 , 8 2 7 1 , 8 3 4 1 , 8 4 5 1 , 9 0 0 1 , 8 7 9
Hires 314 195 188 206
2 6 0 2 6 0 3 6 4 3 2 8 3 6 3
Building
13,94311,90411,36111,039
B u i l d i n g a n d t r a d e p e r m i t s p r o c e s s e d / i s s u e d 1 5 , 9 8 9 2 0 , 1 2 8 1 9 , 0 9 3 1 7
, 9 4 0 1 8 , 3 4 8
Certificates 736 337 383 411
7 2 7 7 8 8 7 2 6 7 8 0 6 2 2
Tourism & cultural development
Film & print and special events permits 1,563 1,232 966 950
1 , 6 4 0 1 , 5 6 6 1 , 7 0 0 1 , 5 8 3 1 , 2 8 0
25,21030,07126,41429,642
Bass Museum Visitors
2 2 , 0 0 0 5 0 , 0 0 0 3 6 , 7 4 9 1 9 , 2 1 1
1 9 , 0 0 0
Theater Events (Byron/Colony) 380 267 225 223
3 0 5 2 9 9 2 4 0 1 4 9 2 5 5
Operations:
Parking
Residential Parking Permits N/A 26,43728,13111,55711,830
2 4 , 3 7 7 2 5 , 4 7 1 2 6 , 1 6 1 2 6 , 8 3 7
Municipal Parking Permits N/A 48,96448,66041,65153,502
4 2 , 3 9 2 4 1 , 1 0 8 4 2 , 2 3 4 4 7 , 7 2 2
Total Vehicle Entries - Garages N/A N/A2,474,296 2,711,193 2,815,6722,363,6002,254,1192,311,264
2 , 7 2 9 , 2 5 8
Better Place Requests Open and Closed N/A N/A 435 218
2 4 5 2 8 4 2 6 0
Parks & recreation
Summer Camp 2,587 2,3172,758 2,398
2 , 3 4 0 2 , 8 1 9 2 , 1 1 4 2 , 2 4 1 2 , 5 1 5
After and Play School Participants 882 2,8102,680 3,217
2 , 5 5 8 3 , 3 7 1 2 , 6 5 0 2 , 4 1 0 2 , 4 0 0
Athletics 1,442 2,8352,656 2,079
1 , 0 5 1 1 , 0 1 8 9 4 0 1 , 0 2 0 1 , 2 5 3
Pool Attendance 161,176145,337141,524160,456
2 8 , 0 0 0 6 5 , 4 3 7 6 6 , 0 0 0 7 9 , 1 3 5 1 1 9 , 8 0 0
A
Golf course patrons N/A 44,07842,85066,35873,447
3 0 , 6 5 5 3 7 , 1 5 2 4 2 , 9 2 3 4 4 , 2 5 2
Public Works-Engineering/Water/Sewer/Streets
Right-of-Way permits issued N/A 1,092 899 935 868
7 9 4 8 9 0 1 , 1 0 0 9 0 0
Cleaning and inspection of sewer lines 1,217,202 1,182,000703,294778,937 N/A
7 3 3 , 3 0 0 7 1 0 , 0 0 0 1 0 0 , 0 0 0 8 0 0 , 0 0 0
Storm sewers cleaned 88,00059,00078,279 N/A
1 3 7 , 0 0 0 1 4 0 , 0 0 0 1 4 0 , 0 0 0 1 4 0 , 0 0 0 2 3 3 , 0 0 0
Deteriorated storm sewers replaced 15 640 N/A N/A
2 6 6 2 7 5 2 7 5 2 0 0 8 0
New-metered service taps and installations 113 400 207 N/A
6 5 0 7 0 0 6 0 0 5 5 0 1 9 6
Roads and alleys repaved (linear feet) 11,10036,000 N/A N/A
3 , 2 3 2 1 6 , 0 0 0 8 , 0 0 0 1 2 , 0 0 0 7 , 0 0 0
Sidewalk relpaced (square feet) 63,00044,00046,889 N/A
3 7 , 0 0 0 3 0 , 0 0 0 4 0 , 0 0 0 3 0 , 0 0 0 3 8 , 0 0 0
Better Place Requests Open and Closed N/A N/A 1,787
3 , 0 4 9 2 , 6 2 6 1 , 8 5 4 2 , 7 3 2 2 , 9 0 8 2 , 6 3 6
Sanitation
Residential Waste (tons per month) N/A 15,50014,88213,35412,980
1 8 , 5 0 0 1 9 , 6 5 0 1 5 , 9 7 0 1 5 , 7 0 8
Litter Cans N/A 2,335 2,3352,735 2,735
1 , 3 1 6 2 , 0 0 0 2 , 0 5 0 2 , 0 9 5
Mechanized Sweeping (miles per day) N/A 15 15 20 20
4 1 1 1 5 1 5
Mobile Sweeping (miles per day) N/A 156 156 156 156
1 5 6 1 5 6 1 5 6 1 5 6
Fleet Management
820,913866,571890,529903,675
F u e l c o n s u m e d - d i e s e l a n d u n l e a d e d ( g a l l o n s ) 7 5 1 , 0 0 0 8 0 2 , 3 0 6 8 1 0 , 0 0 0 8 2 5 , 0
0 0 7 7 7 , 8 2 7
Preventive maintenance jobs 2,932 2,9113,160 3,053
2 , 3 6 1 2 , 6 4 2 2 , 8 6 8 2 , 8 7 6 2 , 6 9 9
Police
Total number of arrests 14,95413,80413,33810,801
8 , 6 9 7 9 , 6 8 4 1 0 , 2 9 0 1 0 , 1 8 5 1 2 , 8 8 7
Traffic Violations 52,97649,38944,52139,586
2 5 , 3 1 6 2 5 , 7 4 2 4 4 , 1 7 4 4 5 , 5 2 4 5 8 , 6 1 5
Better Place Requests Open and Closed N/A N/A 50 143 96 67 73 28
6 7
Fire
Emergency responses 16,79422,64025,01520,356
1 4 , 7 3 0 1 3 , 4 0 6 1 3 , 0 0 0 1 4 , 7 0 0 1 3 , 5 3 2
Exsisting building inspections N/A N/A N/A N/A N/A N/A 2,292 978 1500
Night club inspections N/A N/A N/A N/A N/A N/A 3,184 2769 3198
Site inspections N/A N/A N/A N/A N/A N/A 4,932 4953 3672
On duty inspections N/A N/A N/A N/A N/A N/A 1,984 1856 1793
Ocean rescue - victims rescued 680 506 579 645
5 1 8 8 9 5 9 0 0 2 8 1 3 1 3
Ocean recue prevention 447,251455,757349,882320,858
1 4 7 , 4 0 9 1 5 9 , 2 8 0 1 6 0 , 0 0 0 2 8 0 , 1 0 4 3 6 5 , 1 0 3
Better Place Requests Open and Closed N/A N/A 189 182 149 137 115 50
1 4 4
N/A - Information not available
Source: Various City of Miami Beach departments, Environmental Scan (dated 5/1/2009), Departmental Workplans
Note: Data is not available in this format for years prior to 2002
A
The City opened a second golf course which was operational for 9 months during the
133
CITY OF MIAMI BEACH, FLORIDA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST NINE FISCAL YEARS
Fiscal Year
2002 2003 2004 200520062007200820092010
Function/Program
Police
S t a t i o n s 1 1 1 1 1 1
1 1 1
Zone offices
3 3 4 4 4 4
4 4 4
Patrol units
3 4 0 4 1 5 4 4 0 4 4 0 4 4 0 4 4 0 4 4 0
4 4 0 4 8 6
Fire stations
4 4 4 4 4 4
4 4 4
Water
Water mains (miles)
1 8 0 1 8 0 1 8 0 1 8 0 1 8 0 1 8 0 1 8 0
1 8 0 1 8 0
Water valves 23,000 23,000
2 3 , 0 0 0 2 3 , 0 0 0 2 3 , 0 0 0 2 3 , 0 0 0 2 3 , 0 0 0 2 3 , 0 0 0 2 3 , 0 0 0
Fire hydrants
1 , 0 0 3 1 , 0 0 3 1 , 0 0 6 1 , 0 0 6 1 , 0 0 9 1 , 0 0 9 1 , 0 0 9 1 , 0 0 9
1 , 0 0 9
Fire lines
7 0 0 7 0 8 7 1 0 7 1 2 7 1 7 7 1 7 7 1 7
7 1 7 7 1 7
Meters 12,460 12,460
1 2 , 5 5 7 1 2 , 3 0 0 1 2 , 3 5 0 1 2 , 4 2 4 1 2 , 4 6 0 1 2 , 4 6 0 1 2 , 4 6 0
Water pumping stations
5 5 5 5 5 5
5 5 5
Storage capacity (thousands of gallons) 12,000 12,000 12,000
1 2 , 0 0 0 1 2 , 0 0 0 1 2 , 0 0 0 1 2 , 0 0 0 1 2 , 0 0 0 1 2 , 0 0 0
Stormwater
Stormwater pipes (miles)
5 9 5 9 5 9 5 9 5 9 5 9 5 9
5 9 5 9
Drainage basins
1 7 2 1 7 2 1 7 2 1 7 2 1 7 2 1 7 2 1 7 2
1 7 2 1 7 2
Stormwater catch basins
6 , 0 0 0 6 , 0 0 0 6 , 0 0 0 6 , 0 0 0 5 , 0 0 0 6 , 0 0 0 6 , 0 0 0 6 , 0 0 0
6 , 0 0 0
Manholes
2 , 1 6 1 2 , 1 6 1 2 , 1 6 1 2 , 1 6 1 2 , 1 6 1 2 , 1 6 1 2 , 1 6 1 2 , 1 6 1
2 , 1 6 1
Sewer
Sanitary gravity sewer pipes (miles)
1 4 4 1 4 4 1 4 4 1 4 4 1 5 2 1 5 2 1 5 2
1 5 2 1 5 2
Force main pipes (miles)
2 1 2 1 2 1 2 1 2 1 2 1 2 1
2 1 2 1
Manholes
3 , 2 9 3 3 , 2 9 3 3 , 2 9 3 3 , 2 9 3 3 , 2 9 3 3 , 2 9 3 3 , 2 9 3 3 , 2 9 3
3 , 2 9 3
Wastewater pump stations
2 3 2 3 2 3 2 3 2 3 2 3 2 3
2 3 2 3
Other public works
Streets (miles)
1 4 0 1 4 0 1 4 0 1 4 0 1 4 0 1 4 0 1 4 0
1 4 0 1 4 0
Sidewalks (miles)
2 4 2 2 4 2 2 4 2 2 4 2 2 4 2 2 4 2 2 4 2
2 4 2 2 4 2
Curb and gutter (miles)
2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0
2 0 0 2 0 0
Alleys (miles)
3 3 3 3 3 3 3 3 3 3 3 3 3 3
3 3 3 3
Seawalls (linear feet)
7 , 3 0 0 7 , 3 0 0 7 , 3 0 0 7 , 3 0 0 7 , 3 0 0 7 , 3 0 0 7 , 3 0 0 7 , 3 0 0
7 , 3 0 0
Streetlights
5 , 8 0 0 5 , 8 1 0 5 , 8 1 7 5 , 8 5 0 5 , 9 0 0 6 , 0 0 0 6 , 2 0 0 6 , 2 0 0
6 , 8 9 3
Street lights cable (miles)
2 5 0 2 5 1 2 5 2 2 6 0 2 6 5 2 6 5 2 6 5
2 6 5 2 6 3
Parking
Parking Lots & Garages
6 6 6 6 6 8 6 8 6 8 6 8 6 8
7 0 7 5
Parking Spaces
8 , 4 5 1 8 , 4 5 1 8 , 4 9 6 8 , 4 9 6 8 , 3 3 3 8 , 3 0 0 8 , 4 0 4 8 , 9 0 0
9 , 5 6 0
Parks and recreation
Recreational open space (acres)
7 2 7 7 2 7 7 2 7 7 2 7 7 2 7 7 2 7 7 2 7
7 2 7 7 2 7
Playground tot-lots 19
1 4 1 4 1 4 1 4 1 4 1 5 1 5
1 5
Stadiums
2 2 2 2 2 2
2 2 2
Sports fields
7 7 7 7 7 7
7 7 7
Tennis sites
6 6 6 6 6 6
6 6 6
Basketball court sites
9 9 9 9 1 5 1 5
1 5 1 5 1 5
Ice Rink
1 1 1 1 1 1
1 1 1
Pools
3 3 3 3 3 3
3 3 3
Youth/Community centers
3 3 3 3 3 3
3 3 3
Bark parks
2 2 2 2 2 3
3 4 3
Parks - passive and staffed
2 8 2 8 2 8 3 7 2 5 2 6 2 6
2 6 2 6
Municipal regulation golf courses 2
2 2 2 2 2 2
2 2
Trucks,off-road, and other vehicles
6 3 6 5 6 7 6 7 8 4 9 3 9 8
9 8 9 7
Sanitation
Sweepers
1 2 1 2 1 6 1 7 2 1 1 3 9
9 6
Front end loader
1 1 1 1 2 3
3 3 -
Trucks, Vans, and other vehicles
2 2 2 2 3 1 3 2 6 0 8 1 7 4
8 3 7 9
Pressure washers
5 8 1 0 1 1 9 9
9
Transit-minibuses
1 1 1 0 1 0 1 0 4 4
4 4 -
Source: Various City of Miami Beach departments.
Note: Data is not available in this format for years prior to 2002
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