HomeMy WebLinkAbout2013 - 2014CITY OF SEBASTIAN, FLORIDA
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HOME OF PELICAN ISLAND
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended September 30, 2014
CITY COUNCIL
Bob McParttan Jim Hill
Mayor Vice -Mayor
Andrea Coy
Council Member
Jerome Adams Richard Gittmor
Council Member Council Member
Prepared by: Administrative Services Department
CITY OF SEBASTIAN, FLORIDA
0 Table of Contents
Page
INTRODUCTORY SECTION
City Officials 2
Letter of Transmittal 3
Organizational Chart 8
GFOA Certificate of Achievement 9
FINANCIAL SECTION 11
Independent Auditors' Report
13
Management's Discussion and Analysis
17
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Position
31
Statement of Activities
32
Fund Financial Statements:
Balance Sheet - Governmental Funds
34
Reconciliation of Fund Balances for Governmental Funds to Net Position
of Governmental Activities
37
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds
38
Reconciliation of Net Changes in Fund Balance of Governmental
Funds to Change in Net Position of Governmental Activities
40
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual:
General Fund
41
Discretionary Sales Tax Fund
42
Riverfront Redevelopment Fund
43
Discretionary Sales Surtax Revenue Bonds 2003 Fund
44
Transportation Improvements Fund
45
Statement of Net Position - Proprietary Funds
46
Statement of Revenues, Expenses and Changes in Fund
Net Position - Proprietary Funds
47
Statement of Cash Flows - Proprietary Funds
48
Statement of Fiduciary Net Position
50
Statement of Changes in Fiduciary Net Position
51
Notes to Financial Statements
53
CITY OF SEBASTIAN, FLORIDA
0 Table of Contents
Page
Required Supplementary Information:
Schedule of Funding Progress - Single -employer Pension Trust Fund 86
Schedule of Employer Contributions - Single -employer Pension Trust Fund 88
Schedule of Funding Progress - Other Postemployment Benefits Plan 88
Schedule of Employer Contributions - Other Postemployment Benefits Plan 88
Combining and Individual Fund Financial Statements and Schedules:
Nonmajor Governmental Funds:
Combining Balance Sheet
90
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances
92
Schedule of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual:
Local Option Gas Tax
94
Parking In -Lieu of Fund
95
Recreation Impact Fee Fund
96
Stormwater Utility Fund
97
Law Enforcement Forfeiture Fund
98
Stormwater Utility Revenue Bonds 2003 Fund
99
Agency Fund:
Combining Statement of Changes in Assets and Liabilities 102
Other:
Capital Assets used in the Operations of Governmental Funds:
Comparative Schedule by Source 104
Schedule by Function and Activity 105
Schedule of Changes by Function and Activity 106
Internal Control and Compliance
Independent Auditor's Report on Internal Control over Financial Reporting
and on Compliance with Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Governmental Auditing Standards 109
Independent Auditors' Management Letter
111
Independent Accountants' Report 115
CITY OF SEBASTIAN, FLORIDA
0 Table of Contents
Page
STATISTICAL SECTION (UNAUDITED) 117
Statistical Section Table of Contents
119
Financial Trends Information
Net Position by Component
120
Changes in Net Position
122
Fund Balances, Governmental Funds
126
Changes in Fund Balances, Governmental Funds
128
Program Revenues by Function/Program
130
Revenue Capacity Information
Tax Revenues by Source
132
Property Tax Rates ($1 per $1,000 of Taxable Value) - Direct and
Overlapping Governments
133
Assessed and Estimated Actual Value of Taxable Property
134
Principal Property Taxpayers
136
Property Taxes, Levies and Collections
137
Debt Capacity Information
Ratio of Outstanding Debt by Type
138
Ratio of Net General Bonded Debt to Estimated Actual Value and Net
General Bonded Debt Per Capita
140
Computation of Legal Debt Margin for General Obligation Bonds
142
Pledged Revenue Coverage
144
Demographic and Economic Information
Demographic and Economic Statistics
146
Principal Employers
149
Operating Information
Full -Time Equivalent City Employees by Function/Program
150
Operating Indicators by Function/ Program
152
Capital Asset Statistics by Function/ Program
154
INTRODUCTORY SECTION
CITY OF SEBASTIAN, FLORIDA
CITY OFFICIALS
For the Year Ended September 30, 2014
Joseph Griffin
City Manager
Robert Ginsburg
City Attorney
DEPARTMENT HEADS
Michelle Morris
Police Chief
Frank Watanabe
Community Development & Airport
Director
Wayne Eseltine
Building Official
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Sally A. Maio, MMC
City Clerk
Kenneth W. Killgore
Administrative Services Director
Jerry Converse
Public Works Director
Greg Gardner
Golf Course Director
CITY CSF
- ON
HOME OF PELICAN ISLAND
March 13, 2015
To the Citizens of the City of Sebastian, Florida:
We are submitting the Comprehensive Annual Financial Report of the City of Sebastian, Florida for the
fiscal year ended September 30, 2014, as prepared by the City's Administrative Services department.
State law requires that every general-purpose local government publish within six months of the close
of each fiscal year a complete set of audited financial statements. This report is published to fulfill that
requirement for the fiscal year ended September 30, 2014.
Management assumes full responsibility for the completeness and reliability of the information
contained in this report, based on a comprehensive framework of internal control that is established for
this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective
is to provide reasonable, rather than absolute, assurance that the financial statements are free of any
material misstatements.
Chapter 218.39, Florida Statutes requires that the financial statements of the City of Sebastian be
audited by a certified public accountant selected by the City Council. The City's independent Certified
Public Accountants, Rehmann Robson, has issued an unqualified ("clean") opinion on the City of
Sebastian's financial statements for the year ended September 30, 2014. The independent auditors'
report is located on page 13, 14 and 15. Management's discussion and analysis (MDEtA) immediately
follows the independent auditors' report and provides a narrative introduction, overview, and analysis
of the basic financial statements. The MDEtA complements this letter of transmittal and should be read
in conjunction with it.
Profile of the Government
The City of Sebastian, Florida is located in Indian River County approximately midway through the east
coast of the Florida Peninsula (between Melbourne and Vero Beach) in an area known as the Treasure
Coast. It is recognized as the Home of Pelican Island, the first designated wildlife refuge in the United
States, a Millennium City, and a Tree City USA. It was first incorporated as the Town of Sebastian in
1924. In the late 1950s General Development Corporation purchased the land from the Mackie family of
Miami and began the development of a planned community that is now the City of Sebastian.
The City has a population of 22,296 living in an area of approximately 14.6 square miles. The City is
empowered to levy a property tax on both real and personal property located within its boundaries. It
also is empowered by state statute to extend its corporate limits by annexation, which it has done from
time to time.
The City is a Florida municipal corporation with a five -member City Council. Council members serve a
two-year term. Annual elections are held on the first Tuesday following the first Monday in November
and two members are elected in even -numbered years and three members are elected in odd -numbered
years. Elections are non-partisan and at -large. Mayor and Vice Mayor are elected from among the
members of every newly seated Council at a Special meeting following the election each year. The City
has operated under a Council -City Manager form of government since 1989.
The City provides a wide range of services including general government administration, police
protection, the construction and maintenance of local roads, public works, recreational and cultural
activities, a golf course, a general aviation airport, and a building department to enforce building
codes.
This report includes all funds of the City. In evaluating the City as a reporting entity, we have included
all component units for which the City Council is financially accountable. The component units have
been blended with the financial statements presented for the Primary Government because the
component unit's governing body is the same as the City Council or because the component unit
exclusively serves the City. The blended component units are the Riverfront Redevelopment Agency and
the Sebastian Police Officer's Pension Trust Fund.
The Council is required to adopt a final budget no later than the close of the fiscal year. This annual
budget serves as the foundation for the City's financial planning and control. The budget is prepared by
fund, function (e.g., transportation), and department (e.g., public works). Shifts in appropriations
within fund totals may be done administratively on the authority of the City Manager. Total fund
appropriation changes and use of contingency appropriations must be approved by the City Council.
Local Economy
The region (which includes the City of Sebastian and the surrounding unincorporated area within the
same county) has a fluctuating labor force depending on agricultural demand and is a strong retirement
community. Although the labor force fluctuates, unemployment in the region increased to high levels
for several years but has shown good improvement in the last two years. As of September 2014, the
Florida Research It Economic Database reported an improved unemployment rate of 6.5%, which
corresponds with improvements being enjoyed at the state and national levels. The overall
unemployment rate for the area has historically been greater than that of the State of Florida.
The largest major occupational group is Office and Administrative Support Occupations (24.7%),
followed by Sales and Related Occupations (17.3%) and Food Preparation and Serving Related
Occupations (12.4%). According to the U.S. Census Bureau (2000), 86% of the population age 25 or older
are high school graduates and 23.1% hold a bachelor's degree or higher. The area median age for 2010
was 50.1 per the U.S Census Bureau. The median household income for 2013 was $44,326, as reported
by the Florida Research and Economic Database. The geographical area of the City of Sebastian, just
north of the Treasure Coast, houses a number of high-tech industries including NASA and various
aerospace industry -related businesses. In the past, this attracted a workforce with a higher than
average education and technical skills to the vicinity but with the end of the Space Shuttle program,
the loss of these activities affected job availability. Now, the area has diversified to industries focused
on building aerospace vehicles rather than just launching activities. This has helped with providing
employment for this highly skilled work force.
4
Long-term Financial Planning
The voters of Indian River County in November 2003 extended the Infrastructure Sales Surtax in the
amount of $.01 per $1.00 sale for an additional fifteen years and seven months beginning in January
2004. This Infrastructure Sales Surtax is estimated to provide the City in excess of $40 million dollars
over the life of the extension for the City's emergency vehicle and capital improvement needs. In
addition, the City has funded a number of other capital projects with impact fees and has actively
pursued grant funding for some major transportation and environmental improvements. It has also
employed the use of a Community Redevelopment Agency that is funded by means of tax -increment
financing.
The millage was levied at the same 3.7166 for fiscal year 2014. The City had a slight overall increase in
ad valorem proceeds resulting from increases in taxable values due to improvements and additions.
Construction activity increased with 175 permits being issued for new construction in fiscal year 2014
with a value of $40.0 million compared to 170 permits being issued for new construction in fiscal year
2013 with a value of $35.9 million. These levels are higher than past years and can be primarily
attributed to the improved outlook for the housing market.
General Fund unassigned fund balance and amounts committed by the financial policies resolution
based on 30% of the General Fund expenditures budget, were 51% of the General Fund expenditures
budget. The City has been steadfast and refused to spend down these balances because the City
understands reliance on accumulated fund balances to fund operating expenditures is not a prudent
fiscal strategy. To this end, the budget for fiscal year 2014 was balanced without a reduction of fund
balances.
Major Initiatives
Administration
The City completed a city-wide deployment of new personal computers for all users, with the intent
that efficiencies and equipment consistency would increase productivity. Taking advantage of lower
borrowing rates, refunding outstanding bond issues. This not only resulted in present value savings but
also relief from the previous bond covenants. During the budget process for fiscal year 2015, the City
adopted a millage increase in order to allocate funds to improve the Indian River Lagoon, resurface
roadways and minimize the impact of proposed additional railway traffic.
Stormwater
Operation and maintenance activities are accounted for in General Fund, with about one-half of the
costs offset by an annual transfer from the Stormwater Utility Fund. Equipment replacements are being
accounted for in the Stormwater Utility Fund. The City continued the program to upgrade the current
swale system by contracting to install quarter -round piping. Swale and ditch maintenance work was
also outsourced to enable City crews to focus on different stormwater maintenance practices. Several
new pieces of equipment were acquired toward this end.
Traffic Et Transportation
The City continues working on transportation improvements. Matching funds for a grant have been
allocated from discretionary sales taxes for improvements to Tulip Drive. Funds have also been
allocated from discretionary sales taxes to realign Barber Street and from discretionary sales taxes and
the community redevelopment agency for enhancements to the "presidential streets" within the
community redevelopment agency area. Other projects being planned for future years include
reconstruction of Fleming Street, reconstruction of Coolidge Street, sidewalk repair and construction,
plus street repaving.
Airport
The Sebastian Municipal Airport's infrastructure is being developed with the intent of attracting
economic development and stimulating the business climate in order to create jobs in the community.
In fiscal year 2015, a separate budget was once again approved for expenses made toward promoting
economic development. The current Master Plan serves as the guiding document for airport planning.
Land leases are a primary source of airport revenues and over 150 acres of property is available for
lease, for both aviation and non -aviation businesses. Also important are sales from a self -serve fueling
facility. The Airport's limited resources continue to be leveraged by aggressively seeking and obtaining
grants from the Florida Department of Transportation (FDOT) and Federal Aviation Administration (FAA)
for funding to develop the necessary infrastructure. Construction has started on improving the roadway
to Main Street. Planned improvements in fiscal year 2015 include constructing another hangar with
grant funds matched by funds from discretionary sales taxes.
Public Safety
The Police Department continues to participate in the accreditation program offered by the commission
for Florida Law Enforcement Accreditation. The designation encourages the Police Department to
establish goals and objectives with provisions for periodic updating; constant reevaluation of whether
departmental resources are being employed in accordance with agency goals, objectives and mission;
constant reevaluation of departmental policies and procedures as documented in the department's
written directive system; to accommodate correction of internal deficiencies and inefficiencies before
they become public problems; and the opportunity to reorganize without the appearance of personal
attacks. Standards and performance measurements resulting from the accreditation process will
continue to guide both Sebastian Police Department and city administration in alleviating potentially
adverse conditions.
Culture Et Recreation
The City continued efforts to promote the "working waterfront" concept on the riverfront properties
that were purchased with grant funding and has a lease with a not-for-profit entity to advance this
effort. During fiscal year 2014, Parks and Recreation completed the purchase of new equipment for the
Schumann Park playground. In fiscal year 2015, bids will be taken to rebuild the Skate Park and make
parking improvements at the Community Center. Funding is also being allocated to maintain some of
the facilities with replacements of tables, benches and shrubs as needed.
N
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 of Sebastian for its
comprehensive annual financial report for the fiscal year ended September 30, 2013. This is a
prestigious national award -recognizing conformance with the highest standards for preparation of state
and local government financial reports. In order to be awarded a Certificate of Achievement, a
government must publish an easily readable and efficiently organized comprehensive annual financial
report. This report must satisfy both U.S. 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 meet the Certificate of Achievement
Program's requirements and we are submitting it to the GFOA to determine its eligibility for another
certificate.
The preparation of this report would not be possible without the dedicated service of the
Administrative Services department staff. Their efforts toward improving the accounting and financial
reporting systems has led to the improved quality of information reported to the City Council, State and
Federal agencies and the citizens of the City of Sebastian. We sincerely appreciate their contributions.
Respectfully submitted,
Joseph Griffin
City Manager
Kenneth W. Killgore
Administrative Services Director
7
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CITY OF SEBASTIAN, FLORIDA
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CITY OF SEBASTIAN, FLORIDA
GFOA Certificate of Achievement
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City of Sebastian
Florida
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Financial Rcraxt
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September 30, 2013
Exomn Nrector/CEo
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FINANCIAL SECTION
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'01JRehn ann
INDEPENDENT AUDITORS' REPORT
March 13, 2015
Honorable Mayor and
Members of City Council
City of Sebastian
Sebastian, Florida
Report on the Financial Statements
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx:772.234.8488
rehmann.com
We have audited the accompanying financial statements of the governmental activities, the business -
type activities, each major fund, and the aggregate remaining fund information of the City of
Sebastian, Florida (the "City"), as of and for the year ended September 30, 2014, and the related
notes to the financial statements, which collectively comprise the City's basic financial statements as
listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Independent Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of
the financial statements.
13
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, the financial statements referred to previously present fairly, in all material respects,
the respective financial position of the governmental activities, the business -type activities, each
major fund, and the aggregate remaining fund information of the City of Sebastian, Florida as of
September 30, 2014, and the respective changes in financial position and cash flows, where applicable,
thereof and the respective budgetary comparison for the General Fund and each major special revenue
fund for the year then ended in conformity with accounting principles generally accepted in the United
States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis and the Schedules of Funding Progress and Employer Contributions for the
pension and other postemployment benefit plans, as listed in the table of contents, be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of preparing
the information and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because
the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Sebastian, Florida's basic financial statements. The combining and
individual fund financial statements and schedules are presented for purposes of additional analysis and
are not a required part of the basic financial statements.
The combining and individual fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. The information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the information is fairly stated in all material respects in relation to
the basic financial statements as a whole.
14
The introductory section and statistical tables are presented for purposes or additional analysis and are
not a required part of the basic financial statements. Such information has not been subjected to the
auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not
express an opinion or provide any assurance on it.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 13,
2015, on our consideration of the City of Sebastian, Florida's internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
the City's internal control over financial reporting and compliance.
LLC
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MANAGEMENT'S DISCUSSION AND ANALYSIS
17
CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
The City of Sebastian's (the "City") discussion and analysis is designed to (a) assist the reader in focusing on significant
financial issues, (b) provide an overview of the City's financial activity, (c) identify changes in the City's financial
position, (d) identify any material deviations from the financial plan, and (e) identify individual fund issues or
concerns.
Since the Management's Discussion and Analysis (MDEtA) is designed to focus on the current years activities, resulting
changes and currently known facts, please read it in conjunction with the Transmittal Letter and the City's financial
statements.
Financial Highlights
The assets of the City exceeded its liabilities at the close of the fiscal year 2014 by $53,993,241 (net position). Of
this amount, $4,866,738 (unrestricted net position) may be used to meet the City's on-going obligations to citizens
and creditors.
The City's total net position increased by $997,608 resulting from an increase of $1,200,924 from governmental
activities and an decrease of $203,316 from business -type activities.
Governmental funds reported a combined ending fund balance of $11,440,487, a decrease of $590,123 from the
prior year. Approximately 47% of this amount, $5,284,030 is unassigned and available for spending, an increase of
$218,788 from fiscal year 2013 due to total General Fund revenue and transfers in being greater than expenditures
and transfers out.
The Golf Course Fund reported an increase in the deficit in unrestricted net position, due to an increase in
operating expenses and further decline in operating revenues. The Airport Fund unrestricted deficit is the result
of investment in capital assets that will ultimately be beneficial to its development and the City's economic
growth. The Building Enterprise fund reported an increase in net position, as a result of an improved levels of
construction activity. All of the City's enterprise funds reported a positive amount of overall net position.
Overview of the Financial Statements
The annual report consists of a series of financial statements. The Statement of Net Position and the Statement of
Activities provide information about the activities of the City as a whole and present a longer-term view of the City's
finances. For governmental activities, the fund financial statements tell how these services were financed in the
short term as well as what remains for future spending. Fund financial statements also report the City's operations in
more detail by providing information about the City's most significant funds. The notes to the financial statements
provide additional information that is essential to a full understanding of the data provided in the government -wide
and fund financial statements.
Government -wide Financial Statements. The government -wide financial statements are designed to provide readers
with a broad overview of the City's finances, in a manner similar to a private -sector business.
The statement of net position presents information on all of the City's assets, deferred outflows of resources,
liabilities and deferred inflows of resources, with the difference between them reported as net position. Over time,
increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is
improving or deteriorating.
The statement of activities presents information showing how the government's net position changed during the most
recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change
occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement
for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but
unused vacation leave).
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CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
Both of the government -wide financial statements distinguish functions of the City that are principally supported by
taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all
or a significant portion of their costs through user fees and charges (business -type activities). The governmental
activities of the City include general government, public safety, cultural and recreation, and general administration.
The business -type activities of the City include the golf course, airport, and building operations.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources
that have been segregated for specific activities or objectives. The City, like other state and local governments, uses
fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of
the City can be divided into 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 -wide financial statements. However, unlike the government -wide financial
statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources,
as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful
in evaluating a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government -wide financial statements. By doing so, readers may better understand
the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet
and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a
reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains fifteen individual governmental funds. Information is presented separately in the governmental
funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund
balances for the General Fund, Discretionary Sales Tax Fund, Riverfront Redevelopment Fund, Discretionary Sales
Surtax Debt Service Fund, and General Capital Projects Fund all of which are considered to be major funds. Data from
the other ten governmental funds are combined into a single, aggregated presentation. Individual fund data for each
of these nonmajor governmental funds is provided in the form of combining statements and schedules elsewhere in
this report.
The City adopts an annual appropriated budget for its General Fund and special revenue funds. Budgetary comparison
statements have been provided for these funds to demonstrate compliance with this budget.
Proprietary Funds. The City maintains one type of proprietary funds. Enterprise funds are used to report the same
functions presented as business -type activities in the government -wide financial statements. The City uses enterprise
funds to account for the golf course, airport, and buildings department.
Proprietary funds provide the same type of information as the government -wide financial statements, only in more
detail. The proprietary fund financial statements provide separate information for the golf course, airport, and
buildings department, which are considered to be major funds of the City.
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 the City's own programs. The accounting used for fiduciary funds is much like
that used for proprietary funds.
Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding
of the data provided in the government -wide and fund financial statements.
WGA
CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
Other Information. In addition to the basic financial statements and accompanying notes, this report also presents
certain required supplementary information.
Government -wide Financial Analysis
As previously stated, net position may serve over time as a useful indicator of a government's financial position. In
the case of the City, assets exceeded liabilities by $53,993,241 at the close of the most recent fiscal year.
Net Position
Governmental Activities Business -type Activities Total
2014 2013 2014 2013 2014 2013
Current and other assets $12,413,518 $12,847,068 $ 353,051 $ 13,222 $12,766,569 $12,860,290
Capital assets, net 41,251,526 41,945,665 10,652,054 10,889,473 51,903,580 52,835,138
Total assets 53,665,044 54,792,733 11,005,105 10,902,695 64,670,149 65,695,428
Long-term liabilities 9,108,109 11,476,204 480,861 259,582 9,588,970 11,735,786
Other liabilities 900,382 860,900 187,556 103,109 1,087,938 964,009
Total liabilities 10,008,491 12,337,104 668,417 362,691 10,676,908 12,699,795
Net position
Net investment in
capital assets
33,643,526
32,038,749
10,367,350 10,846,501 44,010,876
42,885,250
Restricted
5,115,627
5,839,440
- 5,115,627
5,839,440
Unrestricted
4,897,400
4,577,440
(30,662) (306,497) 4,866,738
4,270,943
Total net position
$43,656,553
$42,455,629
$ 10,336,688 $10,540,004 $53,993,241
$52,995,633
A substantial portion of the City's net position, $44,010,876 (81.5 percent), reflects its investment in capital assets
(e.g., land, buildings, machinery and equipment), less any related outstanding debt used to acquire those assets. 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 position of $5,115,627 (9.5 percent) represents resources that are subject to
external restrictions on how they may be used. The City may use the remaining balance of unrestricted net position
of $4,866,738 (9 percent) to meet its ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position,
for the government as a whole and for its separate governmental activities. Unrestricted net position were negative
for business -type activities as a whole, but improved over the prior year. This was due to the substantial increase in
the building fund's revenues.
20
CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
Revenues
Program revenues:
Charges for services
Operating grants
Capital grants
General revenues:
Property taxes
Other taxes
Intergovernmental
Other
Total revenues
Expenses
General government
Public safety
Physical environment
Transportation
Economic environment
Cultural and recreation
Interest and fiscal
charges
Golf course
Airport
Building
Total expenses
Change in net position,
before transfers
Transfers
Change in net position
Change in Net Position
Governmental Activities Business -type Activities
2014 2013 2014 2013
Total
2014 2013
$ 1,623,586 $ 1,554,301 $ 2,449,114 $ 2,491,164 $ 4,072,700 $ 4,045,465
186,295 332,627 - - 186,295 332,627
739,785 770,123 235,215 230,868 975,000 1,000,991
3,248,113
3,221,304
3,248,113
3,221,304
5,320,051
5,123,046
5,320,051
5,123,046
2,208,700
2,063,450
2,208,700
2,063,450
1,572,427
1,508,832
1,484 4,665 1,573,911
1,513,497
14,898,957
14,573,683
2,685,813 2,726,697 17,584,770
17,300,380
2,923,398
2,784,485
2,923,398
2,784,485
4,908,374
4,928,203
4,908,374
4,928,203
2,310,539
2,039,380
2,310,539
2,039,380
1,828,569
1,845,429
1,828,569
1,845,429
247,891
155,214
247,891
155,214
1,229,369
1,232,345
1,229,369
1,232,345
235,071 368,432 -
-
235,071
368,432
- - 1,406,770
1,377,039
1,406,770
1,377,039
1,031,464
1,146,905
1,031,464
1,146,905
465,717
417,887
465,717
417,887
13,683,211 13,353,488 2,903,951
2,941,831
16,587,162
16,295,319
1,215,746 1,220,195
(14,822) (37,734)
1,200,924 1,182,461
(218,138) (215,134)
14,822 37,734
(203,316) (177,400)
997,608 1,005,061
997,608 1,005,061
Net position, beginning
of year 42,455,629 41,273,168 10,540,004 10,717,404 52,995,633 51,990,572
Net position end, of year $43,656,553 $42,455,629 $ 10,336,688 $10,540,004 $53,993,241 $52,995,633
The City's net position increased by $997,608 during the current fiscal year. The primary reason for the increase in
net position for governmental activities is related to an increase in program revenues and in general revenues. For
business -type activities, the decline in net position is related to expenses in excess of revenues.
21
CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
Governmental Activities. Governmental activities increased the City's net position by $1,200,924 as compared to the
prior year increase of $1,182,461. Key elements of this increase are as follows:
An increase in expenses of $329,723
An increase in general revenues of $432,659
A decrease in program revenues of $107,385
A decrease in transfers out of $22,912
Expenses and Program Revenues - Governmental Activities
6,000,000
5,000,000 ■ Expenses
. ■ Program Revenues
4,000,000
3,000,000
2,000,000
1,000,000
General Public safety Physical Transportation Economic Cultural and Interest and
government environment environment recreation fiscal
Intergove
1
Other
44
Revenues by Source - Governmental Activities
r)thcr
22
ig grants
.at grants
5%
Property taxes
22%
CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
Business -type Activities. Business -type activities decreased the City's net position by $203,316, as compared to the
prior year decrease of $177,400. The key elements of this decrease are as follows:
A decrease in expenses of $39,880
A decrease in general revenues of $3,181
A decrease in program revenues of $37,703, largely due to a decline in golf revenues.
A decrease in transfers in of $22,910
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
Expenses and Program Revenues - Business -type Activities
Golf course Airport Building
Capital grafi
9%
Revenues by Source - Business -type Activities
Operating grants and
23
,es for services
91%
CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
Financial Analysis of the City's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance -related legal
requirements.
Governmental Funds. The focus of the City's governmental funds is to provide information on near-term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the City's financing
requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources
available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of
$11,440,487, a decrease of $590,123 from the prior year. Of this amount, 46 percent ($5,284,030) constitutes
unassigned fund balance, which is available for spending at the City's discretion. The remainder of fund balance is
assigned to indicate that it is not available for new spending because it is classified as one of the following: A)
Nonspendable for 1) inventories and prepaids, 2) long-term cash advances, or 3) is nonspendable as permanent fund
corpus for cemetery perpetual care; B) Restricted for capital projects or due to debt service and special revenue fund
designations; C) is committed for development by local ordinance; or D) has been assigned for other specific uses in
the City's general operations.
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned fund
balance of the General Fund was $5,348,905 while total fund balance amounted to $5,733,332. As a measure of the
General Fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total
fund expenditures. Unassigned fund balance represents 52 percent of total General Fund expenditures, while total
fund balance represents 55.7 percent of that same amount.
The fund balance of the City's General Fund increased by $263,874 during the current fiscal year. Key factors in this
change are as follows:
Property tax revenues increased by $21,072 due to additions to taxable property values.
Charges for services increased by $4,221
Intergovernmental increased by $148,492
Public utility taxes increased by $46,993
All other revenues increased by $51,726
Transfers in from other funds were $630,748.
Expenditures increased by $604,825.
The General Fund budgeted for no change in fund balance. The actual increase in fund balance was $263,874.
Significant changes in budgetary variances are as follows:
Property tax revenues had a positive budgetary variance of $47,813, with over 96% of the tax roll being collected.
Only 95% of the tax roll is budgeted as being collected, per Florida statutes.
Intergovernmental revenue had a positive budgetary variance from higher than anticipated receipts from
municipal revenue sharing and local half -cent sales taxes transmitted by the state.
Investment earnings were over-estimated as a result of low interest rates.
General Fund expenditures had an overall positive budgetary variance of $273,141 of which the greatest portions
related to general government, ($135,104), physical environment ($46,093), and culture and recreation ($8,785).
Unanticipated capital purchases were necessary in several departments, however these were covered by savings
from operating accounts.
24
CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
The Discretionary Sales Tax revenue special revenue fund has a total fund balance $2,996,414, an increase from the
$2,707,722 total fund balance of the prior year. Funds are intentionally being accumulated for projects that are
planned in future years.
The Riverfront Redevelopment Fund ended the year with $380,054 in fund balance, as a result of the transfers out for
pending construction projects being less than budgeted.
The Discretionary Sales Surtax Debt Service Fund has a total fund balance of $516,764, all of which is restricted for
debt service.
Proprietary Funds. The City's proprietary fund financial statements provide the same type of information found in
the government -wide financial statements, but in more detail.
The total net position of the golf course fund at the end of the fiscal year amounted to $162,357, while the
unrestricted net position (deficit) amounted to ($237,309). Compared to the prior year in the same category, net
position declined from the prior year and the unrestricted net position (deficit) decreased by $129,221 from the prior
year. This is mainly because of a reduction in revenues from golf course fees.
The total net position of the airport fund at the end of the fiscal year amounted to $9,221,272, while the unrestricted
net position (deficit) amounted to ($742,311). Compared to the prior year in the same category, net position has
decreased by $245,463 while the unrestricted net position (deficit) was reduced by $77,085. The reduction in the
unrestricted net position (deficit) is mainly due to a reduction in amounts invested in capital assets resulting from
depreciation expense.
The total net position of the building fund at the end of the fiscal year amounted to $953,059. This is an increase of
$171,368 from the prior year, which was primarily due to increases in operating revenue from building permit fees.
Other factors concerning the finances of these three funds have already been addressed in the discussion of the City's
business -type activities.
Budgetary Highlights
Over the course of the fiscal year, the City Council revised the City budget four times. These budget amendments fell
into three categories. The first category includes amendments to allocate funds for grants, new projects or
equipment replacements that were not originally budgeted. The second includes amendments to prior appropriations
for activities where construction bids came in higher than originally estimated. The third includes adjustments to
cover expenditure accounts that exceeded amounts that were originally estimated. The main components of the
increase are as follows:
$166,163 addition to funding for the Airport Drive East project to cover a higher construction cost than budgeted.
$658,500 adjustment to allocate funding for the Presidential Streets project.
$35,000 adjustment to reallocate funding for renovating the football field restrooms that was budgeted in the
prior year but not completed.
$30,875 adjustment between Public Works accounts to fund the costs of adding a Maintenance Worker II position.
$11,000 adjustment to purchase computer software for the Police Department.
25
CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
$11,093 adjustment to replace weapons for the Police Department.
$157,350 adjustment to establish accounts for the FIND Grant award for improvements to the Fish House.
$30,881 adjustment to replace a backhoe and barricade trailer.
$25,066 adjustment to use extra collections of electric utility taxes to fund an Environmental Specialist position.
$11,961 adjustment to purchase a Video Retention Server for the Police Department.
$50,126 adjustment to replace the golf course netting at the driving range.
$25,000 adjustment to construct angled parking on Indian River Drive.
$10,000 adjustment to initiate engineering services needed on several project that were expected to be funded in
next year's budget.
$28,056 adjustment to replace an excavator.
$28,888 adjustment to appropriate additional funds necessary to cover a greater construction cost bid to repave
Englar Drive.
$6,138 adjustment to cover a greater construction cost bid for angled parking on Indian River Drive.
$20,000 adjustment to establish accounts to do the shoreline restoration project.
$4,343 adjustment to upgrade the computer authentication system at the Police Department
$174,200 adjustment to various General Fund department expenditure accounts to cover unanticipated
expenditures that created budget overages.
During the fiscal year, total General Fund actual expenditures were less than final amended budgetary estimates and a
positive overall variance on revenues and expenditures resulted in an increase to existing fund balances.
Capital Asset and Debt Administration
Capital Assets. At the end of fiscal year 2014 the City had $51,903,580 invested in a broad range of capital assets,
including land, police and public works equipment, buildings, park facilities, roads, bridges, and stormwater drainage
structures. This amount represents a net decrease (including additions and deductions) of $932,558, or 2.2%, over last
year. The following table illustrates the changes in capital assets. Additional information regarding the City's capital
assets can be found in Footnote 7 of the of the Notes to the Financial Statements section of the CAFR.
26
Capital Assets (Net of Depreciation)
Governmental Activities
Business -type
Activities
Total
2014
2013
2014
2013
2014
2013
Land
$ 8,319,588
$ 8,319,588
$ 9,060
$ 9,060
$ 8,328,648
$ 8,328,648
Buildings
7,892,766
8,244,472
4,931,028
5,100,277
12,823,794
13,344,749
Improvements
3,403,336
3,608,344
858,289
977,725
4,261,625
4,586,069
Equipment
1,487,763
1,234,547
24,493
247,041
1,512,256
1,481,588
Infrastructure
20,065,904
20,417,972
4,566,559
4,479,903
24,632,463
24,897,875
Construction in progress
82,169
120,742
262,625
76,467
344,794
197,209
Total capital assets, net
$41,251,526
$41,945,665
$ 10,652,054
$10,890,473
$51,903,580
$52,836,138
26
CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
Governmental activities had the following major changes during the fiscal year:
A decrease in buildings mainly due to the amount of depreciation.
A decrease in improvements mainly due to the amount of depreciation
An increase in equipment mainly due to purchases of equipment needed for stormwater system maintenance.
An decrease in infrastructure mainly due to stormwater improvements offset by depreciation.
Business -type activities had the following major changes during the fiscal year:
An increase in infrastructure due to improvements made at the airport.
A decrease in other categories mainly due to the amount of depreciation.
Long -Term Debt. At the end of the current fiscal year, the City had total debt outstanding of $9,588,970 Of this
amount, 100% comprises debt backed by the full faith and credit of the government. More detailed information
regarding these activities and funds can be found in Footnote 8 of the of the Notes to the Financial Statements section
of the CAFR.
General Obligation and Revenue Bonds
Governmental Activities Business -type Activities Total
2014 2013 2014 2013 2014 2013
Revenue bonds $ - $ 7,815,000 $ - $ - $ - $ 7,815,000
Notes payable 7,608,000 2,099,000 284,704 42,972 7,892,704 2,141,972
7,608,000 9,914,000 284,704 42,972 7,892,704 9,956,972
Discount on bond payable
-
(7,084)
- - -
(7,084)
Compensated absences
1,405,482
1,463,208
196,157 216,610 1,601,639
1,679,818
Termination benefits
3,427
14,880
- - 3,427
14,880
Pollution remediation
91,200
91,200
- - 91,200
91,200
Total
$ 9,108,109
$11,476,204 $
480,861 $ 259,582 $ 9,588,970
$11,735,786
The City's total debt decreased by $2,146,816 (22.4 %) during the current fiscal year. The net decrease was primarily
attributable to annual principal payments and conversion of bonds to notes and paying down the principal during the
advance refunding of the bonds that occurred during the year.
The City's debt, primarily notes and a capital lease, are not rated by AAA rated insurance agencies. Other obligations
of the City include accrued vacation pay and sick leave.
Economic Factors and Next Year's Budget and Rates
The City's elected and appointed officials considered many factors when setting the fiscal year 2015 budget, tax rates,
and fees that will be charged for the business -type activities. One of those factors is the economy. Sebastian's local
economy consists largely of retail and service industries. Less than one percent is devoted to industrial activities.
Construction of new homes is the largest single business in the area. Some of the largest retail stores include Publix
Supermarket and Wal-Mart Stores, Inc.(D The Indian River County unemployment rate in September 2015 was 6.5
percent and less than the higher levels of previous years, which is a positive sign and analogous to the economic
pattern existing throughout the state and nation.
27
CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
The City experienced a 7.3% overall increase in property values for 2015. The same millage could have balanced total
revenues to expenditures, but after much discussion the rate was increased to 3.8556. This enabled funds to be
allocated for expenditures that will improve the Indian River Lagoon, resurface roadways and minimize the impact of
proposed additional railroad traffic.
The Golf Course reported less revenues from fees in 2014 due to a reduced amount of play. It was necessary to
continue to make a temporary interfund loan from the General Fund to provide sufficient cash flow. It is expected
that with a reasonably good level of revenues in the coming year, the loan can be repaid.
General Fund also made a temporary interfund loan to the Airport in order to provide sufficient cash flow. It is
expected that repayment will be made in the coming year. Sizable operating losses are primarily the result of
depreciation on capital assets.
With a large increase in building permit fees and only a small increase in operating expenses, the Building Enterprise
Fund reported a positive change in net position. There are some signs of renewed activity in the local housing market
which are encouraging.
Requests for Information
This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general
overview of the City's finances and to show the City's accountability for the money it receives. If you have questions
about this report or need additional information, contact the Administrative Services Department at City of Sebastian,
1225 Main Street, Sebastian, Florida 32958.
28
BASIC FINANCIAL STATEMENTS
WA
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30
CITY OF SEBASTIAN, FLORIDA
Statement of Net Position
September 30, 2014
Assets
Cash and cash equivalents
Temporarily restricted cash and cash equivalents
Investments
Permanently restricted investments
Receivables, net
Internal balances
Prepaid items
Inventories
Net pension asset
Deposits held in escrow
Capital assets not being depreciated
Capital assets being depreciated, net
Total assets
Liabilities
Accounts payable and other current liabilities
Accrued interest payable
Unearned revenues
Long-term liabilities:
Due within one year
Due in more than one year
Net other postemployment benefits liability
Total liabilities
Net position
Net investment in capital assets
Restricted for:
Debt service
Perpetual care:
Nonexpendable
Special revenue uses:
Infrastructure improvements
Redevelopment expenses
Stormwater expenses
Law enforcement events
Unrestricted (deficit)
Total net position
Primary Government
Governmental Business -type
Activities Activities Total
$ 5,862,194 $ 652,428 $ 6,514,622
1,475,335
-
1,475,335
2,654,041
463,088
3,117,129
256,410
-
256,410
888,194
149,649
1,037,843
962,711
(962,711)
-
112,248
14,660
126,908
57,584
34,335
91,919
138,355
-
138,355
6,446
1,602
8,048
8,401,757
271,685
8,673,442
32,849,769
10,380,369
43,230,138
53,665,044 11,005,105 64,670,149
769,287 109,625 878,912
45,495 669 46,164
65,389 76,451 141,840
1,657,507 72,258 1,729,765
7,450,602 408,603 7,859,205
20,211 811 21,022
10,008,491 668,417 10,676,908
33,643,526 10,367,350 44,010,876
645,568 645,568
837,659 837,659
3,153,082
3,153,082
380,054
380,054
44,915
44,915
54,349
54,349
4,897,400
(30,662) 4,866,738
$ 43,656,553 $ 10,336,688 $ 53,993,241
The accompanying notes are an integral part of these basic financial statements.
31
CITY OF SEBASTIAN, FLORIDA
Statement of Activities
For the Year Ended September 30, 2014
Functions / Programs
Primary government
Governmental activities:
General government
Public safety
Physical environment
Transportation
Economic environment
Cultural and recreation
Interest and fiscal charges
Total governmental activities
Business -type activities:
Golf course
Airport
Building
Total business -type activities
Total primary government
Program Revenues
Operating Capital
Charges Grants and Grants and
Expenses for Services Contributions Contributions
Net
(Expense)
Revenue
$ 2,923,398 $ 407,068 $ 6,659 $ $ (2,509,671)
4,908,374 76,132 169,878 (4,662,364)
2,310,539 1,073,015 - (1,237,524)
1,828,569 - 9,758 555,934 (1,262,877)
247,891 - - 15,501 (232,390)
1,229,369 67,371 168,350 (993,648)
235,071 - - (235,071)
13,683,211 1,623,586 186,295 739,785 (11,133,545)
1,406,770 1,277,660 - (129,110)
1,031,464 470,703 235,215 (325,546)
465,717 700,751 - 235,034
2,903,951 2,449,114 - 235,215 (219,622)
$ 16,587,162 $ 4,072,700 $ 186,295 $ 975,000 $ (11,353,167)
continued...
32
CITY OF SEBASTIAN, FLORIDA
Statement of Activities
For the Year Ended September 30, 2014
Changes in net position
Net revenue (expense)
General revenues:
Property taxes, levied for general purposes
Sales and use taxes
Franchise fees
State shared revenues not restricted to specific programs
Interest earnings
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
Net position, beginning of year
Net position, end of year
Primary Government
Governmental Business -type
Activities Activities Total
$ (11,133,545) $ (219,622) $ (11,353,167)
3,248,113
3,248,113
5,320,051
5,320,051
1,190,233
1,190,233
2,208,700
- 2,208,700
43,293
1,484 44,777
338,901
- 338,901
(14,822)
14,822 -
12,334,469 16,306 12,350,775
1,200,924 (203,316) 997,608
42,455,629 10,540,004 52,995,633
$ 43,656,553 $ 10,336,688 $ 53,993,241
concluded
The accompanying notes are an integral part of these basic financial statements.
33
CITY OF SEBASTIAN, FLORIDA
Balance Sheet
Governmental Funds
September 30, 2014
Assets
Cash and cash equivalents
Investments
Accounts receivable, net
Due from other funds
Due from other governments
Deposits held in escrow
Inventories
Prepaid items
Advance to other funds
Total assets
Liabilities
Accounts payable and accrued liabilities $ 405,574 $ $ 2,252 $
Due to other funds - -
Due to other governments 52,200
Advances from other funds 19,778
Unearned revenue 65,389
Total liabilities 542,941 2,252
Fund balances
Discretionary
Nonspendable
369,329
551,911
Sales Surtax
Restricted
Discretionary
Riverfront
Revenue Note
General
Sales Tax
Redevelopment
2013
$ 3,507,810
$ 1,333,842
$ 282,522
$ 516,764
1,611,202
848,570
96,071
-
319,049
-
3,210
380,054 516,764
218,117
-
-
382,306 $ 516,764
244,320
262,091
6,446
-
57,584
-
111,745
-
503
200,000
551,911
-
-
$ 6,276,273
$ 2,996,414
$ 382,306
$ 516,764
Liabilities
Accounts payable and accrued liabilities $ 405,574 $ $ 2,252 $
Due to other funds - -
Due to other governments 52,200
Advances from other funds 19,778
Unearned revenue 65,389
Total liabilities 542,941 2,252
Fund balances
Nonspendable
369,329
551,911
503 -
Restricted
7,969
2,444,503
379,551 516,764
Committed
-
-
- -
Assigned
7,129
Unassigned
5,348,905
-
- -
Total fund balances (deficit)
5,733,332
2,996,414
380,054 516,764
Total liabilities and fund balances
$ 6,276,273
$ 2,996,414 $
382,306 $ 516,764
The accompanying notes are an integral part of these basic financial statements.
34
Nonmajor
Total
Transportation Governmental
Governmental
Improvements Funds
Funds
$ 163,742 $ 1,532,849
$ 7,337,529
- 354,608
2,910,451
-
322,259
-
218,117
59,524
565,935
-
6,446
57,584
112,248
751,911
$ 163,742 $ 1,946,981 $ 12,282,480
$ 195,790 $ 93,693 $ 697,309
- 7,317 7,317
- 52,200
19,778
65,389
195,790 101,010 841,993
837,659
1,759,402
416,132
3,764,919
625,007
625,007
-
7,129
(32,048) (32,827)
5,284,030
(32,048) 1,845,971 11,440,487
$ 163,742 $ 1,946,981 $ 12,282,480
35
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36
CITY OF SEBASTIAN, FLORIDA
Reconciliation
Fund Balances for Governmental Funds
to Net Position of Governmental Activities
September 30, 2014
Fund balances - total governmental funds
Amounts reported for governmental activities in the statement of
net position are different because:
Capital assets used in governmental activities are not financial resources,
and therefore are not reported in the fund statement.
Capital assets not being depreciated
Capital assets being depreciated, net
Some items are recorded as revenues and expenditures in the fund statements when paid or when
received. These items are recorded on the government -wide statements when incurred in the case of
expenditures and when revenues are earned.
Net pension asset
Certain liabilities, such as notes payable, are not due and payable
in the current period, and therefore are not reported in the funds.
Notes payable
Compensated absences
Termination benefits
Net other post employment benefits liability
Contamination liability
Accrued interest on long-term debt
Net position of governmental activities
The accompanying notes are an integral part of these basic financial statements.
37
$ 11,440,487
8,401,757
32,849,769
138,355
(7,608,000)
(1,405,482)
(3,427)
(20,211)
(91,200)
(45,495)
$ 43,656,553
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2014
Discretionary
Total revenues
9,925,341
2,761,241
299,242
Sales Surtax
Expenditures
Discretionary
Riverfront
Revenue Note
Current:
General
Sales Tax
Redevelopment
2013
Revenues
2,573,224
-
2,381
-
Taxes:
4,610,774
-
Property
$ 2,976,053
$
$ 272,060
$
Public utility
2,581,427
-
Sales
-
2,738,405
144,612
Motor fuel
-
-
-
-
Franchise fees
1,190,233
Licenses and permits
138,564
1,870,000
Intergovernmental
2,363,937
143,841
Impact fees
-
-
-
Chargesforservices
375,126
-
146,993
2,013,841
Fines
52,240
-
-
-
Investment earnings
12,132
22,836
1,682
1,575
Contributions and donations
21,159
-
-
-
Otherrevenues
214,470
(2,472,549)
25,500
38,870
Total revenues
9,925,341
2,761,241
299,242
40,445
Expenditures
Current:
General government
2,573,224
-
2,381
-
Public safety
4,610,774
-
Physical environment
11063,392
Transportation
959,132
-
Economic environment
-
144,612
Culture and recreation
888,795
-
-
Debt service:
Principal
-
1,870,000
Interest and fiscal charges
-
143,841
Capital outlay
196,900
-
-
Total expenditures
10,292,217
-
146,993
2,013,841
Revenues(under)over expenditures
(366,876)
2,761,241
152,249
(1,973,396)
Other financing sources (uses)
Transfers in
630,750
-
-
935,293
Transfers out
-
(2,472,549)
(327,133)
-
Total other financing sources(uses)
630,750
(2,472,549)
(327,133)
935,293
Net changes in fund balances
263,874
288,692
(174,884)
(1,038,103)
Fund balances, beginning of year
5,469,458
2,707,722
554,938
1,554,867
Fund balances (deficits), end of year
$ 5,733,332
$ 2,996,414 $
380,054 $
516,764
The accompanying notes are an integral part of these basic financial statements.
38
Nonmajor Total
Transportation Governmental Governmental
Improvements Funds Funds
$ $ $ 3,248,113
2,581,427
2,738,405
555,934 555,934
- 1,190,233
- 138,564
9,758 2,373,695
168,350 168,350
1,055,975 1,431,101
1,900 54,140
5,068 43,293
15,642 36,801
60,061 338,901
1,872,688 14,898,957
2,575,605
12,286 4,623,060
47,396 1,110,788
205,872 1,165,004
- 144,612
888,795
436,000
2,306,000
- 270,154
413,995
848,118 1,201,381
2,246,399
848,118 2,173,089
15,474,258
(848,118) (300,401)
(575,301)
816,070 1,521,091 3,903,204
- (1,118,344) (3,918,026)
816,070 402,747 (14,822)
(32,048) 102,346 (590,123)
1,743,625 12,030,610
$ (32,048) $ 1,845,971 $ 11,440,487
W
CITY OF SEBASTIAN, FLORIDA
Reconciliation
Net Changes in Fund Balances of Governmental Funds
to Change in Net Position of Governmental Activities
For the Year Ended September 30, 2014
Net change in fund balances - total governmental funds
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.
Capital outlay
Depreciation expense
Loss on the sale of capital assets
Bond proceeds provide current financial resources to governmental funds
in the period issued, but issuing bonds increases long-term liabilities in the
statement of net position. Repayment of bond principal is an expenditure in the
governmental funds, but the repayment reduces long-term liabilities in the
statement of net position.
Principal payments on long-term liabilities
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.
Change in accrued interest payable on long-term debt
Amortization of bond discounts
Change in the accrual for compensated absences
Change in the accrual for pension benefits
Change in the accrual for other postemployment benefits
Change in the accrual for termination benefits
Change in net position of governmental activities
The accompanying notes are an integral part of these basic financial statements.
40
$ (590,123)
2,245,311
(2,926,436)
(13,014)
2,306,000
115,485
(7,084)
57,726
(2,481)
4,087
11.453
$ 1,200,924
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - General Fund
For the Year Ended September 30, 2014
Total revenues 9,429,396 9,706,996 9,925,341 218,345
Expenditures
Actual Over
Current:
Original
Final
(Under) Final
General government
Budget
Budget
Actual
Budget
Revenues
4,404,137
4,599,191
4,610,774
11,583
Taxes:
1,176,660
1,109,485
1,063,392
(46,093)
Property
$ 2,928,240
$ 2,928,240
$ 2,976,053
$ 47,813
Public utility
2,507,000
2,604,066
2,581,427
(22,639)
Franchise fees
1,143,000
1,143,000
1,190,233
47,233
Licenses and permits
149,050
149,050
138,564
(10,486)
Intergovernmental
2,048,300
2,196,168
2,363,937
167,769
Charges for services
373,556
386,222
375,126
(11,096)
Fines
65,400
65,400
52,240
(13,160)
Investment earnings
35,500
35,500
12,132
(23,368)
Contributions and donations
18,600
24,600
21,159
(3,441)
Otherrevenues
160,750
174,750
214,470
39,720
Total revenues 9,429,396 9,706,996 9,925,341 218,345
Expenditures
Current:
General government
2,516,157
2,708,328
2,573,224
(135,104)
Public safety
4,404,137
4,599,191
4,610,774
11,583
Physical environment
1,176,660
1,109,485
1,063,392
(46,093)
Transportation
986,110
982,473
959,132
(23,341)
Culture and recreation
897,580
897,580
888,795
(8,785)
Capital outlay
79,500
268,301
196,900
(71,401)
Total expenditures
10,060,144
10,565,358
10,292,217
(273,141)
Revenues over(under)expenditures
(630,748)
(858,362)
(366,876)
491,486
Other financing sources
Transfers in
630,748
858,362
630,750
(227,612)
Net changes in fund balances
-
-
263,874
263,874
Fund balances, beginning of year
5,469,458
5,469,458
5,469,458
-
Fund balances, end of year
$ 5,469,458
$ 5,469,458
$ 5,733,332 $
263,874
The accompanying notes are an integral part of these basic financial statements.
41
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Discretionary Sales Tax Special Revenue Fund
For the Year Ended September 30, 2014
Revenues
Taxes:
Sales
Investment earnings
Total revenues
Other financing sources (uses)
Transfers in
Transfers out
Total other financing uses
Net changes in fund balance
Fund balance, beginning of year
Fund balance, end of year
$ 2,707,722 $ 2,707,722 $ 2,996,414 $ 288,692
The accompanying notes are an integral part of these basic financial statements.
42
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
$ 2,596,325
$ 2,596,325
$ 2,738,405
$ 142,080
27,658
27,658
22,836
(4,822)
2,623,983
2,623,983
2,761,241
137,258
-
975,559
-
(975,559)
(2,623,983)
(3,599,542)
(2,472,549)
1,126,993
(2,623,983)
(2,623,983)
(2,472,549)
151,434
-
-
288,692
288,692
2,707,722
2,707,722
2,707,722
-
$ 2,707,722 $ 2,707,722 $ 2,996,414 $ 288,692
The accompanying notes are an integral part of these basic financial statements.
42
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Riverfront Redevelopment Special Revenue Fund
For the Year Ended September 30, 2014
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Taxes:
Property
$ 265,466 $
265,466
$ 272,060
$ 6,594
Investment earnings
1,936
1,936
1,682
(254)
Otherrevenues
-
-
25,500
25,500
Total revenues
267,402
267,402
299,242
31,840
Expenditures
Current:
General government
2,500
2,500
2,381
(119)
Economic environment
284,995
284,995
144,612
(140,383)
Capital outlay
-
-
-
Total expenditures
287,495
287,495
146,993
(140,502)
Revenues over(under)expenditures
(17,593)
(17,593)
152,249
172,342
Other financing uses
Transfers out
(60,000)
(381,960)
(327,133)
54,827
Net changes in fund balance
(77,593)
(399,553)
(174,884)
227,169
Fund balance, beginning of year
554,938
554,938
554,938
-
Fund balance, end of year
$ 477,345 $
155,385
$ 380,054
$ 227,169
The accompanying notes are an integral part of these basic financial statements.
43
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Discretionary Sales Surtax Revenue Note 2013 Debt Service Fund
For the Year Ended September 30, 2014
Revenues
Miscellaneous revenue
Investment earnings
Total revenue
Expenditures
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Revenues under expenditures
Other financing sources
Transfers in
Net changes in fund balance
Fund balance, beginning of year
Fund balance, end of year
Actual Over
Original Final (Under) Final
Budget Budget Actual Budget
$ - $ - $ 38,870 $ 38,870
4,966 4,966 1,575 (3,391)
4,966 4,966 40,445 35,479
850,000
850,000
1,870,000
1,020,000
166,944
166,944
143,841
(23,103)
1,016,944
1,016,944
2,013,841
996,897
(1,011,978)
(1,011,978)
(1,973,396)
(961,418)
1,012,493
1,012,493
935,293
(77,200)
515
515
(1,038,103)
(1,038,618)
1,554,867 1,554,867 1,554,867
$ 1,555,382 $ 1,555,382 $ 516,764 $ (1,038,618)
The accompanying notes are an integral part of these basic financial statements.
44
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Transportation Improvements Fund
For the Year Ended September 30, 2014
Revenues
Expenditures
Current:
Capital outlay
Revenues under expenditures
Other financing sources
Transfers in
Net changes in fund balance
Fund balance, beginning of year
Fund balance (deficit), end of year
Original Final
Budget Budget
Actual Over
(Under) Final
Actual Budget
848,118 848,118
(848,118) (848,118)
816,070 816,070
(32,048) (32,048)
$ $ $ (32,048) $ (32,048)
The accompanying notes are an integral part of these basic financial statements.
45
CITY OF SEBASTIAN, FLORIDA
Statement of Net Position
Proprietary Funds
September 30, 2014
Noncurrent assets:
Business -type Activities - Enterprise Funds
Golf
Capital assets:
Nonmajor -
105,841 196,148
Advance from other fund
Course
Airport
Building
Total
Assets
9,060
Buildings
332,748
6,009,116
Current assets:
6,341,864
Improvements other than buildings
245,510
1,644,127
Cash and cash equivalents
$ 1,250
$ 23,968
$ 711,265 $
736,483
Investments
95,466
-
367,622
463,088
Accounts receivable
24,345
5,409
225
29,979
Due from other governments
-
119,670
-
119,670
Inventory
2,389
31,946
-
34,335
Deposits held in escrow
493
616
493
1,602
Prepaid items
3,665
7,797
3,198
14,660
Total current assets
127,608
189,406
1,082,803
1,399,817
Noncurrent assets:
Compensated absences, net of current portion
Capital assets:
28,739
105,841 196,148
Advance from other fund
-
Land
-
9,060
212,455
9,060
Buildings
332,748
6,009,116
129
6,341,864
Improvements other than buildings
245,510
1,644,127
-
1,889,637
Machinery and equipment
384,689
790,029
60,545
1,235,263
Infrastructure
1,100,951
6,589,776
-
7,690,727
Construction in process
-
262,625
262,625
Less accumulated depreciation
(1,379,528)
(5,341,150)
(56,444)
(6,777,122)
Total noncurrent assets
684,370
9,963,583
4,101
10,652,054
Total assets
811,978
10,152,989
1,086,904
12,051,871
Liabilities
Current liabilities:
Negative equity in pooled cash
84,055
-
-
84,055
Accounts payable and accrued liabilities
17,479
66,599
13,301
97,379
Due to other funds
133,800
77,000
-
210,800
Due to other governments
5,758
1,925
5,232
12,915
Unearned revenues
62,002
5,414
9,035
76,451
Current portion of notes payable
72,249
-
-
72,249
Accrued compensated absences
9
-
-
9
Total current liabilities
375,352
150,938
27,568
553,858
Non-current liabilities:
Compensated absences, net of current portion
61,568
28,739
105,841 196,148
Advance from other fund
-
751,911
- 751,911
Notes payable
212,455
-
- 212,455
Net other postemployment benefit obligation
246
129
436 811
Total non-current liabilities
274,269
780,779
106,277 1,161,325
Total liabilities 649,621 931,717 133,845 1,715,183
Net position
Net investment in capital assets 399,666 9,963,583 4,101 10,367,350
Unrestricted (deficit) (237,309) (742,311) 948,958 (30,662)
Total net position $ 162,357 $ 9,221,272 $ 953,059 $ 10,336,688
The accompanying notes are an integral part of these basic financial statements.
46
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds
For the Year Ended September 30, 2014
The accompanying notes are an integral part of these basic financial statements.
47
Business -type Activities - Enterprise Funds
Golf
Nonmajor -
Course
Airport
Building
Total
Operating revenues
Charges for fees and rents:
Building permit fees
$
$
$ 700,751 $
700,751
Golf course fees
1,229,211
-
1,229,211
Rents
29,046
348,417
377,463
Otherrevenues
19,403
122,286
-
141,689
Total operating revenues
1,277,660
470,703
700,751
2,449,114
Operating expenses:
Salaries, wages and employee benefits
303,472
81,491
377,564
762,527
Contractual services, materials and supplies
1,077,089
282,058
87,860
1,447,007
Depreciation
152,367
648,491
293
801,151
Total operating expenses
1,532,928
1,012,040
465,717
3,010,685
Operating income (loss)
(255,268)
(541,337)
235,034
(561,571)
Nonoperating revenues (expenses)
Investment (expense) income
(111)
149
1,446
1,484
Interest expense
(9,817)
(19,424)
-
(29,241)
Gain on disposal of capital assets
135,975
-
135,975
Total nonoperating revenues (expenses)
126,047
(19,275)
1,446
108,218
Income (loss) before capital contributions and transfers
(129,221)
(560,612)
236,480
(453,353)
Capital contributions
235,215
-
235,215
Transfers in
79,934
79,934
Transfers out
-
(65,112)
(65,112)
Change in net position
(129,221)
(245,463)
171,368
(203,316)
Net position, beginning of year
291,578
9,466,735
781,691
10,540,004
Net position, end of year
$ 162,357
$ 9,221,272
$ 953,059 $
10,336,688
The accompanying notes are an integral part of these basic financial statements.
47
CITY OF SEBASTIAN, FLORIDA
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2014
Cash flows from operating activities
Cash received from customers and users
Cash payments to suppliers
Cash payments for employee services
Net cash provided (used) by operating activities
Cash flows from noncapital financing activities
Interest paid on advance from other fund
Cash payments to other funds
Cash receipts from other funds
Net cash provided (used) by noncapital
financing activities
Cash flows from capital and related
financing activities
Proceeds from issuance of long-term debt
Repayment of long term debt
Acquisition and construction of capital assets
Proceeds from sale of assets
Receipts from capital contributions
Net cash provided (used) by capital and
related financing activities
Cash flows from investing activities
Sale (purchase) of investments
Interest received on investments
Net cash provided by investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
Statement of net position
Cash and cash equivalents
Negative equity in pooled cash
Total cash and cash equivalents
Business -type Activities - Enterprise Funds
Golf Nonmajor -
Course Airport Building Total
$ 1,258,149 $ 410,570 $ 701,806 $ 2,370,525
(1,061,902) (2372646) (83,197) (1,382,745)
(302,792) (1102283) (370,069) (783,144)
(106,545) 62,641 248,540 204,636
(9,817) (19,424)
(29,241)
(103,200) (8,550)
(65,110) (176,860)
79,934
79,934
289,635 -
289,635
(113,017) 51,960
(65,110) (126,167)
299,050
299,050
(57,318)
(57,318)
(387,055) (326,543)
(4,396) (717,994)
289,635 -
289,635
- 235,215
235,215
144,312 (91,328) (4,396) 48,588
(8,861)
(111)
- 543
149 1,446
(8,318)
1,484
(8,972)
149 1,989
(6,834)
(84,222)
23,422 181,023
120,223
1,417 546 530,242 532,205
$ (82,805) $ 23,968 $ 711,265 $ 652,428
$ 1,250 $ 23,968 $ 711,265 $ 736,483
(84,055) - - (84,055)
$ (82,805) $ 232968 $ 711,265 $ 652,428
continued...
48
CITY OF SEBASTIAN, FLORIDA
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2014
Cash flow from operating activities:
Operating income (loss)
Adjustments to reconcile operating income to net
cash provided (used) by operating activities:
Depreciation expense
Changein:
Accounts receivable
Inventories
Due from other governments
Prepaid expenses
Accounts payable
Due to other governments
Unearned revenues
Accrued compensated absences
Net other postemployment benefit obligation
Total adjustments
Net cash provided (used) by operating activities
Business -type Activities - Enterprise Funds
Golf Nonmajor -
Course Airport Building Total
$ (255,268) $ (541,337) $ 235,034 $ (561,571)
152,367 648,491 293 801,151
(24,071)
(1,032)
(225)
(25,328)
9,733
(17,063)
-
(7,330)
-
(65,807)
-
(65,807)
214
-
(687)
(473)
5,240
61,475
5,350
72,065
151
1,342
872
2,365
4,409
5,364
408
10,181
730
(28,766)
7,583
(20,453)
(50)
(26)
(88)
(164)
148,723
603,978
13,506
766,207
$ (106,545) $
62,641 $
248,540 $
204,636
concluded
The accompanying notes are an integral part of these basic financial statements.
�i
CITY OF SEBASTIAN, FLORIDA
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2014
Assets
Cash and cash equivalents
Receivables:
Additional City contributions
Interest and dividends
Total receivables
Investments, at fair value:
Local government surplus trust funds investment pools
United States treasury obligations
United States government agency notes
Corporate and foreign bonds
Municipal obligations
Common equity securities
Total investments
Total assets
Liabilities
Refunds payable
Net position
Held in trust for pension benefits
Pension
Trust
Agency
Police
Officers'
Performance
Pension
Deposits
$ 717,489 $ 11,930
19,778
25,244
45,022
- 220,000
358,876 -
302,711
2,442,973
155,126
7,231,043 -
10,490,729 220,000
11,253,240 $ 231,930
$ 11,253,240
The accompanying notes are an integral part of these basic financial statements.
50
$ 231,930
CITY OF SEBASTIAN, FLORIDA
Statement of Changes in Fiduciary Net Position
Fiduciary Fund - Pension Trust
For the Year Ended September 30, 2014
Additions
Contributions:
Employer
Plan members
State
Total contributions
Investment earnings:
Net increase in fair value of investments
Interest and dividends
Total investment earnings
Investment expenses
Net investment earnings
Total additions
Deductions
Benefits
Refunded contributions
Administrative expenses
Total deductions
Change in net position
Net position, beginning of year
Net position, end of year
Police
Officers'
Pension
$ 401,103
160,494
147,868
709,465
802,148
228,692
1,030,840
(78,930)
951,910
1,661,375
452,630
262
27,815
480,707
1,180,668
10,072,572
$ 11,253,240
The accompanying notes are an integral part of these basic financial statements.
51
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52
NOTES TO FINANCIAL STATEMENTS
53
CITY OF SEBASTIAN, FLORIDA
N Notes to Financial Statements
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Sebastian (the "City"), a Florida Municipal Corporation, was incorporated in 1924 under Sections
1826-1832 of the Revised Florida Statutes. The City has a population of 22,188 living in an area of
approximately 14.6 square miles. The governing body is a five member elected City Council with a mayor
elected from the five members. The City Council appoints the City Manager who is responsible for the
administration of all City services.
The financial statements of the City have been prepared in conformity with generally accepted accounting
principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB)
is the accepted standard setting body for establishing governmental accounting and financial reporting
principles. The more significant of the City's accounting policies are described below.
Reporting Entity
As required by generally accepted accounting principles, these financial statements present the government
and its component units, entities for which the City is financially accountable. Blended component units,
although legally separate entities, are, in substance, part of the government's operations and as such, data
from these units are combined with data of the primary government. Discretely presented component units,
on the other hand, are reported in a separate column in the combined financial statements to emphasize
that they are legally separate from the government. The City has no discretely presented component units.
Blended Component Units
Blended component units are a legally separate entity from the City but is so intertwined with the City that
it is, in substance, the same as the City. Discretely presented component units are entities that are legally
separate from the City but for which the City is financially accountable, or their relationship with the City is
such that exclusion would cause the City's financial statements to be misleading or incomplete. The City
has two component units are blended with the primary government for financial statement purposes
because the component unit's governing body is substantially the same as the City Council and/or there is a
financial benefit/burden relationship between the primary government and the component unit.
Community Redevelopment Agency (CRA) - The governing body of the CRA is identical to the Sebastian City
Council and there is a benefit/burden relationship to the City. The CRA is accounted for in a special revenue
fund entitled "Riverfront Redevelopment." F.S. Section 163.387(8) requires an independent audit of the
fund each fiscal year and a report of such audit. The City has presented the CRA as a major fund of the City
to satisfy this requirement simply due to the scope of the audit for a major fund is broader than a non -
major fund.
City of Sebastian Police Officers' Pension Plan - The City Council only appoints two of the five members of
the governing board, but it is financially responsible for funding the police officers' pension benefits. The
City of Sebastian Police Officers' Pension Trust Fund only exists to provide pension benefits to City of
Sebastian police officers. It is accounted for as a Pension Trust fund entitled "Police Officers' Pension".
54
CITY OF SEBASTIAN, FLORIDA
N Notes to Financial Statements
Government -wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the nonfiduciary activities of the primary government and its
component units. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business -type activities, which rely to a significant extent on fees
and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include (1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment and (2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
Separate financial statements are provided for 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.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements.
Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of
the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by
the provider have been met.
Agency funds are custodial in nature and do not present results of operations or have a measurement focus.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
government considers revenues to be available if they are collected within 60 days of the end of the current
fiscal period, and expenditure -driven grants which must be collected within one year. Expenditures
generally are recorded when a liability is incurred, as under accrual accounting. However, debt service
expenditures, as well as expenditures related to compensated absences and claims and judgments, are
recorded only when payment is due.
Property taxes, intergovernmental revenue, licenses, and interest associated with the current fiscal period
are all considered to be susceptible to accrual and as such have been recognized as revenues of the current
fiscal period. All other revenue items are considered to be measurable and available only when cash is
received by the government.
55
CITY OF SEBASTIAN, FLORIDA
M Notes to Financial Statements
The City reports the following major governmental funds:
The General Fund is the government's primary operating fund. It accounts for all the financial
resources of the general government, except those accounted for and reported in another fund.
The Discretionary Sales Tax Fund accounts for the financial resources used for infrastructure
improvements and equipment purchases.
The Riverfront Redevelopment Fund accounts for tax increment revenues that are legally restricted for
the redevelopment of the City's riverfront area.
The Discretionary Sales Surtax Revenue Note 2013 Fund accounts for the accumulation of pledged
funds that are legally restricted to pay the bonded debt obligations of the Discretionary Sales Surtax
Revenue Notes.
The Transportation Improvements Fund accounts for financial resources that are restricted, committed
or assigned to expenditure for specific transportation -related expenditures or construction projects.
The City reports the following major proprietary funds:
The Golf Course Fund accounts for the activities of the municipal golf course.
The Airport Fund accounts for the activities of the municipality's general aviation airport.
The Building Fund accounts for the activities associated with the building permit and inspection
program.
Additionally, the City reports the following fund types:
Special revenue funds are used to account for and report the proceeds of specific revenue sources that
are restricted or committed to expenditure for specified purposes other than debt service or capital
projects.
Debt service funds are used to account for and report financial resources that are restricted,
committed, or assigned to expenditure for principal and interest.
Capital projects funds are used to account for and report financial resources that are restricted,
committed, or assigned to expenditure for capital outlays, including the acquisition or construction of
capital facilities and other capital assets.
The permanent fund is used to record the activity and balance of the Cemetery Trust which provides
funds for perpetual care of cemetery lots.
The pension trust fund accounts for the activities of the Police Officer's Retirement System, which
accumulates resources for pension benefit payments to qualified police officers.
56
CITY OF SEBASTIAN, FLORIDA
M Notes to Financial Statements
The performance deposits agency fund accounts for deposits placed by bidders and developers to
guarantee performance pursuant to bid or contract. These funds are held by the City as agent for
individuals and businesses.
As a general rule, the effect of interfund activity has been eliminated from the government -wide financial
statements. Exceptions to this general rule are payments in lieu of taxes and various other functions of the
government. Elimination of these charges would distort the direct costs and program revenues reported for
the various functions concerned. The General Fund provides certain central services to other funds of the
City which are presented as program expenses in the funds receiving services. The related General Fund
revenue has been netted against program expense in the government -wide statement of activities.
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 funds are charges to customers for sales and services. Operating expenses for enterprise 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.
Restricted net position represents resources that are subject to restrictions beyond the government's
control. The restrictions may be externally imposed or imposed by law. When both restricted and
unrestricted resources are available for use, it is the government's policy to use restricted resources first,
then unrestricted resources as they are needed.
Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Equity
Deposits and Investments
The City considers cash on hand and demand deposits, restricted cash deposits, and short-term investments
with maturities of three months or less when purchased to be cash for the statement of cash flows. Cash in
excess of current requirements is invested in various interest-bearing securities and disclosed as part of the
City's investments.
Investments consist of U.S. Treasury Securities, U.S. Government Agency Securities, common stock,
guaranteed investment contracts and the Local Government Surplus Funds Trust Fund Investment pool. The
Local Government Surplus Funds Trust Fund is administered by the Florida State Board of Administration,
which is not a registrant with the Securities and Exchange Commission. However, the Board has adopted
operating procedures consistent with the requirements for a 2a-7 fund or accounts. In accordance with the
regulations of 2a-7 like pools, the City's share of investments held at the State Board of Administration are
reported at amortized cost, which approximates fair value. This pool is regulated by the State and the fair
value of the position in the pool is the same as the value of the pool share. Investment earnings are
allocated to the participating funds at the end of each month based upon the ratio of each participant's
investment to the total pooled investments. Other investments, including the Police Officers' Pension Fund,
are reported at their fair value based on the quoted market price or the best available information.
57
CITY OF SEBASTIAN, FLORIDA
M Notes to Financial Statements
Internal Balances
Transactions between funds that are representative of [ending/ borrowing arrangements outstanding at the
end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of
interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All
other outstanding balances between funds are reported as "due to/from other funds." Any residual balances
outstanding between the governmental activities and business -type activities are reported in the
government -wide financial statements as "internal balances."
Advances between funds are offset by nonspendable fund balance in applicable governmental funds to
indicate they are not available for appropriation and are not expendable available financial resources.
Restricted Assets
Certain amounts reported as cash and cash equivalents are classified as restricted assets. These include
balances in the debt service funds that are set aside to meet bonded debt requirements, balances in the
capital projects funds to be used for the payment of project costs and balances in the Cemetery Fund that
are either not permitted to be spent or can only be spent for items incidental to cemetery expansions. The
amount of the Cemetery Fund investments is also classified as restricted assets and reported as
permanently restricted investments.
Receivables and Payables
All trade and property tax receivables are shown net of an allowance for uncollectibles, as applicable.
Amounts due from other governments include amounts due from grantors for specific programs and capital
projects. Program grants and capital grants for capital assets are recorded as receivables and revenues at
the time reimbursable project costs are incurred. Revenues received in advance of project costs being
incurred are deferred. Receivables consist of trade receivables, due from other governments and interest
receivable and are recorded at the net realizable value. The City, as of September 30, 2014, has no
allowance for doubtful accounts, since all receivables are considered collectible.
Other Assets
Inventories are valued at cost using the average cost method. Inventory in the General Fund consists of
materials and supplies held for consumption. The cost is recorded as an expenditure/ expense at the time
the individual inventory items are consumed. Inventory in the Golf Course Fund consists of supplies held for
resale.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both the government -wide and fund financial statements.
Costs associated with the issuance or refunding of bonds payable are reported as assets the in proprietary
funds and government -wide statements. These costs are amortized over the life of the related debt
utilizing the straight-line method.
58
CITY OF SEBASTIAN, FLORIDA
N Notes to Financial Statements
Capital Assets
Capital assets, which include land, buildings, improvements, 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. The City defines capital assets as assets
with an initial, individual cost of more than $750 and an estimated useful life in excess of one year. Such
assets are recorded at historical cost, if purchased, and at fair market value at date of gift, if donated.
Major additions are capitalized while maintenance and repairs that do not improve or extend the life of the
respective assets are expensed.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
asset lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business -type activities, if any, is included as
part of the capitalized value of the asset constructed.
Capital assets are depreciated using the straight-line method over the following estimated useful lives:
Years
Buildings and improvements
10-40
Public domain infrastructure
40-50
System infrastructure
15-30
Improvements other than building
10-40
Machinery, equipment and other
5-15
Airport runways
20
Deferred Outflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of resources,
represents a consumption of net position that applies to a future period(s) and so will not be recognized as
an outflow of resources (expense/ expenditure) until then. The City reports deferred outflows of resources
in the government -wide statement of net position for its loss on advance bond refundings, an amount
representing the difference in the carrying value of refunded debt and its reacquisition price. This amount
is deferred and amortized over the shorter of the life of the refunded or refunding debt.
Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation and sick leave benefits
and these are accounted for using the termination payment method. All vacation and sick leave amounts
are accrued in the government -wide and proprietary financial statements. A liability for these amounts is
reported in governmental funds only if they have matured, for example, as a result of employee
resignations and retirements.
M
CITY OF SEBASTIAN, FLORIDA
M Notes to Financial Statements
Unearned Revenue
Governmental funds report unearned revenue in connection with resources that have been received, but not
yet earned.
Deferred Inflows of Resources
In addition to liabilities, the statement of financial position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, represents an acquisition of net
position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue)
until that time. The governmental funds report unavailable revenues, which arises only under a modified
accrual basis of accounting, from three sources: delinquent personal property taxes, special assessment
receivable and housing rehabilitation loans receivable. These amounts are deferred and recognized as an
inflow of resources in the period that the amounts become available.
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 position.
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.
Fund Equity
Governmental funds report nonspendable fund balance for amounts that cannot be spent because they are
either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Restricted
fund balance is reported when externally imposed constraints are placed on the use of resources by
grantors, contributors, or laws or regulations of other governments. Committed fund balance is reported for
amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the
City Council (the government's highest level of decision-making authority). A formal resolution of the City
Council is required to establish, modify, or rescind a fund balance commitment. The City reports assigned
fund balance for amounts that are constrained by the government's intent to be used for specific purposes,
but are neither restricted nor committed. Unassigned fund balance is the residual classification for the
General Fund.
When the government incurs an expenditure for purposes for which various fund balance classifications can
be used, it is the government's policy to use restricted fund balance first, then committed fund balance,
assigned fund balance, and finally unassigned fund balance.
.11
CITY OF SEBASTIAN, FLORIDA
N Notes to Financial Statements
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the amounts
reported in the financial statements and accompanying notes. Actual results may differ from those
estimates.
2. BUDGETARY INFORMATION
Budgets are prepared annually on a modified accrual basis with encumbrance accounting for all
governmental funds except the capital project funds, which are approved on a "life of the project basis",
and the permanent fund, which is not budgeted. All annual appropriations lapse at year end.
On or before the third Friday in May of each year, all agencies of the government submit requests for
appropriations to the government's City Manager so that a budget may be prepared. Before July 31, the
proposed budget is presented to the government's council for review. The council holds budget workshops
and public hearings and a final budget must be prepared and adopted no later than September 30.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure 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 General, Special Revenue, Debt Service,
and Capital Projects funds. Encumbrances outstanding at year end are carried forward and reappropriated
to the next year's budget.
Actual results of operations presented in accordance with U.S. generally accepted accounting principles
(GAAP basis) and the City's accounting policies do not recognize encumbrances as expenditures until the
period in which the actual goods or services are received and a liability is incurred. It is necessary to
include budgetary encumbrances to reflect actual revenues and expenditures on a basis consistent with the
City's legally adopted budget.
3. DEPOSITS AND INVESTMENTS
Following is a reconciliation of deposit and investment balances as of September 30, 2014:
Statement of Net Position
Cash and cash equivalents $ 6,514,622
Temporarily restricted cash and cash equivalents 1,475,335
Investments 3,117,129
Permanently restricted investments 256,410
Statement of Fiduciary Net Position
Police Officers' Pension:
Cash and cash equivalents 717,489
Investments 10, 490, 729
Agency funds:
Cash and cash equivalents 11,930
Investments 220,000
Total $ 22,803,644
61
CITY OF SEBASTIAN, FLORIDA
N Notes to Financial Statements
Deposits and investments
Bank deposits:
Checking and savings accounts $ 8,716,946
Investments:
Investments, at fair value 3,593,539
Police officers' pension fund investments 10,490,729
Cash on hand 2,430
Total $ 22,803,644
Custodial Credit Risk - Deposits. Custodial credit risk is the risk that, in the event of a bank failure, the
City's deposits might not be returned. At September 30, 2014, the carrying amount of the City of
Sebastian's deposits with banks was $7,999,457 and the bank balance was $8,102,154. All the deposits were
covered by the FDIC or collateralized in accordance with the "Florida Security for Public Deposits Act".
Under the Act, every qualified public depository shall deposit with the Treasurer eligible collateral having a
market value equal to 50% of the average daily balance for each month that all public deposits are in excess
of any applicable deposit insurance. If the public deposits exceed the total amount of the regulatory capital
accounts of a bank or the regulatory net worth of a savings association, the required collateral shall have a
market value equal to 125% of the deposits.
Custodial Credit Risk - Investments. On April 23, 2003, Sebastian City Council formally adopted an
investment policy pursuant to Section 218.415, Florida Statutes that established permitted investments,
asset allocation limits and issuer limits, credit ratings requirements and maturity limits for all investments
except the Pension Trust Funds. The City maintains a common cash and investment pool for the use of all
funds, except the Pension Trust Funds, which are held with third party trustees and are governed by rules
established by Florida Statute Chapter 185.
Investment holdings during the year included United States Government Agencies which were reported at
fair value in accordance with GASB Statement No.31 "Accounting and Financial Reporting for Certain
Investments and for External Investment Pools". These investments were held in trust by the City's bank
depository in the City's name or by the Custodian of the Pension Trust Funds.
Section 218.415, Florida Statutes, limits the types of investments that the City can invest in unless specially
authorized in the City's investment policy. The City's formal investment policy, for all investments except
the Pension Trust Fund, allows for the following investments: Florida Local Government Surplus Funds Trust
Fund, United States Government Securities, United States Government Agencies, Federal Instrumentalities,
Interest Bearing Time Deposit or Saving Accounts, Repurchase Agreements, Commercial Paper, High Grade
Corporate Notes, Bankers' Acceptances, State and/or Local Government Taxable and/or Tax -Exempt Debt,
Registered Investment Companies (Money Market Mutual Funds), and Intergovernmental Investment Pool.
Florida Statutes Chapter 185 regulates the types of investment that may be held by the Police Pension Trust
Fund. The investment guidelines have been augmented by City ordinance that have adopted specific
investment policies. Compliance with the policies and guidelines has been evaluated by the pension board.
62
CITY OF SEBASTIAN, FLORIDA
N Notes to Financial Statements
As of September 30, 2014, the City had the following investments and effective duration presented in terms
of years:
Investment Maturity (Years)
Investment Type Fair Value Less Than 1 From 1-3 From 4-6 Over 7
General investments
Local government surplus
funds trust fund ("SBA") $ 3,593,539 $ 3,593,539 $ $ $
Police officers' pension fund investments
United States treasuries
$ 358,876 $
50,019 $
239,474 $ 59,385 $
9,998
United States agencies
302,711
-
- 60,994
241,717
Municipal obligations
155,126
-
- 55,186
99,940
Domestic corporate bonds
2,442,973
40,098
576,804 538,060
1,288,011
Domestic corporate equities
equities
7,231,043
7,231,043
- -
-
$ 10,490,729 $
7,321,160 $
816,278 $ 713,625 $
1,639,666
Interest Rate Risk. The City's investment policy limits interest rate risk by attempting to match investment
maturities with known cash needs and anticipated cash flow requirements. Investment maturities shall not
exceed thirty-six (36) months. Investments of construction funds shall have a term appropriate to the need
for funds and in accordance with debt covenants.
Credit Risk. The City investment policy that covers all investments, except the Pension Trust Fund, permits
for investments in the following investments, which are limited to credit quality ratings from nationally
recognized agencies as follows:
Mutual funds shall be rated "m" or "AAm-G" or better by Standard Et Poor's, or the equivalent by another
rating agency. State and/or local government taxable and/or tax-exempt debt, general obligation and/or
revenue bonds, rated at least "Aa" by Moody's and "AA" by Standard Et Poor's for long-term debt, or rated at
least "MIG -2" by Moody's and 'SP -2" by Standard Et Poor's for short-term debt. Bankers' acceptances issued by
a domestic bank or a federally chartered domestic office of a foreign bank, which are eligible for purchase
by the Federal Reserve System, at the time of purchase, the short-term paper is rated, at a minimum, "P -I"
by Moody's Investors Services and "A -I" Standard Et Poor's. Commercial paper of any United States company
that is rated, at the time of purchase, "Prime -1" by Moody's and "Ad" by Standard Et Poor's (prime
commercial paper). Corporate notes issued by corporations organized and operating within the United
States or by depository institutions licensed by the United States that have a long-term debt rating, at the
time of purchase, at a minimum "Aa" by Moody's and a minimum long term debt rating of "A A" by Standard
Et Poor's.
As of September 30, 2014, the City's investment securities, for all investments except the Pension Trust
Fund, were all individually rated AAAm by Standard Et Poor's.
As of September 30, 2014, the City had $3,593,539 invested in the State Board of Administration's Local
Government Surplus Trust Funds Investment Pool, which consist of accounts in Pool A. Pool A had a rating
by Standard and Poor's Rating Services as "AAAm" on September 30, 2014 and amounts may be withdrawn
without penalty.
63
CITY OF SEBASTIAN, FLORIDA
N Notes to Financial Statements
Investment in the City's pension trust funds are limited by State Statutes Chapter 185 and by an investment
policy adopted by the fund's Board of Trustees on June 24, 2005. The allowable investment instruments
include: United States government and agency issues, bankers acceptances and certificates of deposit by
United States banks, savings accounts with banks or other financial institutions incorporated in the United
States and commercial paper rated A-2 or P-2 or higher by Moody's or Standard and Poors. In addition,
common stocks of corporations listed on a recognized national stock exchange, plus issues convertible into
common stock are also allowed. No more than ten percent (10%) of the cost value of total assets may be
invested in foreign securities.
Custodial Credit Risk. The City's investment policy pursuant to Section 218.415(18), Florida Statutes
requires securities, with the exception of certificates of deposits, shall be held with a third party custodian;
and all securities purchased by, and all collateral obtained by the City should be properly designated as an
asset of the City. The securities must be held in an account separate and apart from the assets of the
financial institution. A third party custodian is defined as any bank depository chartered by the Federal
Government, the State of Florida, or any other state or territory of the United States which has a branch or
principal place of business in the State of Florida as defined in Section 658.12, Florida Statutes, or by a
national association organized and existing under the laws of the United States, which is authorized to
accept and execute trusts and which is doing business in the State of Florida. Certificates of deposits
maintained by book -entry at the issuing bank shall clearly identify the City as the owner.
Concentration of Credit Risk. The City's investment policy has established asset allocation and issuer limits
on the following investments, which are designed to reduce concentration of credit risk of the City's
investment portfolio.
A maximum of 100% of available funds may be invested in the SBA and in the United States Government
Securities, 50% of available funds may be invested in United States Government agencies with a 25% limit on
individual issuers, 80% of available funds may be invested in Federal Instrumentalities with a 40% limit on
individual issuers, 25% of available funds may be invested in non-negotiable interest bearing time
certificates of deposits with a 15% limits on individual issuers, 50% of available funds may be invested in
repurchase agreements excluding one (1) business day agreements and overnight sweep agreements with a
25% limit on anyone institution, 25% of available funds may be directly invested in prime commercial paper
with a 10% limit on individual issuers, 15% of available funds may be directly invested in corporate notes
with a 5% limit on individual issuers, 25% of available funds may be directly invested in Bankers'
Acceptances with a 10% limit on individual issuers, 20% of available funds may be invested in taxable and
tax-exempt debts, 50% of available funds may be invested in money market mutual fund with a 25% limit on
individual issuers, 10% of available funds may be invested in intergovernmental investment pools.
The City's pension trust funds investment policy adopted by the fund's Board of Trustees has established
asset allocation and issuer limits on the following investments, which are designed to focus on performance.
A maximum of 100% of available funds may be invested in fixed income securities and a maximum of 60% of
available funds may be invested in equity securities.
64
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
As of September 30, 2014, the City had the following issuer concentration based on fair value:
Issuer
Local government surplus funds
trust fund ("SBA")
United States treasuries
United States agencies
Municipal obligations
Domestic corporate bonds
Domestic corporate equities
Total
4. RECEIVABLES
General Investments
Percentage of
Amount Portfolio
Pension Investments
Percentage of
Amount491 Portfolio
$ 3,593,539 100.00%
$ -
0.00%
- 0.00%
358,876
3.42%
0.00%
302,711
2.89%
0.00%
155,126
1.48%
0.00%
2,442,973
23.29%
- 0.00%
7,231,043
68.93%
$ 3,593,539 100.00%
$ 10,490,729
100.00%
Receivables are comprised of the following at year-end:
Accounts receivable
Due from other governments
5. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Governmental Business -type
Activities Activities
$ 322,259 $ 29,979
565,935 119,670
$ 888,194 $ 149,649
Accounts payable and accrued liabilities are comprised of the following at year-end:
Accounts payable
Accrued liabilities
Due to other governments
Advance from other funds
65
Governmental
Business -type
Activities
Activities
$ 438,454
$ 73,511
258,855
23,199
52,200
12,915
19,778
-
$ 769,287 $ 109,625
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
6. INTERFUND RECEIVABLES AND PAYABLES AND TRANSFERS
The composition of interfund balances as of September 30, 2014, was as follows:
Due to and from primary government funds
General Fund
Law Enforcement Forfeiture
Golf Course
Airport
Advances to and from primary government funds
Due from Due to Other
Other Funds Funds
$ 218,117 $ -
- 7,317
133,800
- 77,000
$ 218,117 $ 218,117
Advance from Advance to
Other Funds Other Funds
General Fund $ $ 200,000
Discretionary Sales Tax 551,911
Airport 751,911 -
$ 751,911 $ 751,911
These balances resulted from the time lag between the dates that (1) interfund goods and services are
provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and
(3) payments between funds are made.
The balance of $551,911 advanced to the airport fund from the discretionary sales tax fund is to be repaid
over a thirty year period in accordance with Resolution No. R-08-20 for the initial $285,000 advance and
with Resolution No. R-10-22 authorizing an additional $290,000 advance. In relationship to these advances,
$23,089 has been repaid as of September 30, 2014. The balance of $200,000 advanced to the airport from
general fund represents a cash loan made in 2007 without any specified terms for repayment.
For the year ended September 30, 2014, interfund transfers consisted of the following:
Transfers out
Riverfront Nonmajor
Discretionary Redevelopment Governmental
Transfers In Sales Tax Fund Fund Funds Building Fund Totals
General Fund $
- $ 60,000 $
505,638 $
65,112 $ 630,750
DST Surtax Revenue Note
935,293 -
-
- 935,293
Transportation Improvements Func
535,558 280,283
229
816,070
Nonmajor governmental funds
939,470 (13,150)
594,771
1,521,091
Airport Fund
62,228
17,706
79,934
$ 2,472,549 $ 327,133 $ 1,118,344 $ 65,112 $ 3,983,138
66
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Transfers are used to: (1) move revenues from the fund that is required to collect them to the fund that is
required or allowed to expend them and (2) move receipts restricted to or allowed for debt service from
the funds collecting the receipts to the debt service fund as required by debt covenants.
7. CAPITAL ASSETS
Capital asset activity for the primary government for the year ended September 30, 2014, was as follows:
Beginning Ending
Balance Additions Disposals Transfers Balance
Governmental activities
Capital assets, not being depreciated:
Land $
Construction in progress
Capital assets, being depreciated:
Buildings
Non -building improvements
Machinery and equipment
Infrastructure
Less accumulated depreciation for:
Buildings
Non -building improvements
Machinery and equipment
Infrastructure
Total capital assets
being depreciated, net
Governmental activities
capital assets, net
8,319,588 $
- $
$ $
8,319,588
120,742
79,347
(117,920)
82,169
8,440,330
79,347
(117,920)
8,401,757
12,488,546
57,112
-
12,545,658
6,630,200
101,402
(747)
6,730,855
8,023,943
744,278
(856,265) -
7,911,956
36,475,602
1,263,172
117,920
37,856,694
63,618,291
2,165,964
(857,012) 117,920
65,045,163
(4,244,074)
(408,818)
-
(4,652,892)
(3,021,856)
(306,410)
747
(3,327,519)
(6,789,396)
(478,048)
843,251
(6,424,193)
(16,057,630)
(1,733,160)
-
(17,790,790)
(30,112,956)
(2,926,436)
843,998
- (32,195,394)
33,505,335
(760,472)
(13,014)
117,920 32,849,769
$ 41,945,665 $ (681,125) $ (13,014) $
67
- $ 41,251,526
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
At September 30, 2014, the City's governmental activities had outstanding commitments for construction
contracts of approximately $8,875.
Beginning Ending
Balance Additions Disposals Transfers Balance
Business -type activities
Capital assets, not being depreciated:
Land $
Construction in progress
Capital assets, being depreciated:
Buildings
Non -building improvements
Machinery and equipment
Infrastructure
Less accumulated depreciation for:
Buildings
Non -building improvements
Machinery and equipment
Infrastructure
Total capital assets
being depreciated, net
Business -type activities
capital assets, net
9,060 $ - $ $ $ 9,060
75,467 187,158 262,625
84,527 187,158 271,685
6,340,344
-
6,340,344
1,908,161
1,520 (68,650)
1,841,031
1,084,177
50,125 (327,502)
806,800
7,690,727
478,589
8,169,316
17,023,409
530,234 (396,152)
17,157,491
(1,240,063)
(169,253)
-
(1,409,316)
(930,437)
(75,036)
22,731
(982,742)
(837,137)
(164,931)
219,761
(782,307)
(3,210,826)
(391,931)
-
(3,602,757)
(6,218,463)
(801,151)
242,492
(6,777,122)
10,804,946
(270,917)
(153,660)
10,380,369
$ 10,889,473 $ (83,759) $ (153,660) $ . $ 10,652,054
Depreciation expense was charged to functions/ programs of the primary government as follows:
Depreciation of governmental activities by function
General government
$
223,881
Public safety
326,619
Transportation
741,051
Physical environment
1,136,461
Economic environment
103,279
Cultural and recreation
395,145
Total governmental activities
$
2,926,436
Depreciation of business -type activities by function
Golf course
$
152,367
Airport
648,491
Building
293
Total business -type activities
$
801,151
CITY OF SEBASTIAN, FLORIDA
N Notes to Financial Statements
8. LONG-TERM DEBT
Revenue notes are secured by and payable from the revenues of the respective funds that issued them.
The City entered into a nine (9) year loan agreement in 2012 with a local bank for $2,296,000 to
provide financing to repave certain roads in the City and payoff an outstanding loan. The City pledged
Local Option Gas Tax revenues to repay the note payable. The funds are accumulated in the Local
Option Gas Tax Special Revenue fund for repayment of principal and interest.
The City issued a four (4) year, $2,893,000 Infrastructure Sales Surtax Refunding Revenue Note, Series
2013 in December 2013. The City has pledged Infrastructure Sales Surtax revenues for repayment of
principal and interest. These proceeds and other Infrastructure Sales Surtax revenues were used to
totally refund or advance refund all of the outstanding Infrastructure Sales Surtax Bonds prior to
September 30, 2014.
The City issued a nine (9) year, $3,096,000 Stormwater Utility Refunding Revenue Note, Series 2013 in
December 2013. The City has pledged Stormwater Fee Revenues for repayment of principal and
interest. These proceeds and other Stormwater Fee revenues were used to totally advance refund all
of the outstanding Stormwater Utility Revenue Bonds prior to September 30, 2014.
The City entered into a four (4) year loan agreement in 2013 with a local bank for $299,050 to provide
financing to purchase equipment for the Golf Course. Repayment of principal and interest will be
made from Golf Course revenues.
The following is a summary of governmental activities long-term debt transactions for the year ended
September 30, 2014:
Beginning
Ending
Due Within
Balance
Additions Deductions
Balance
One Year
Governmental activities
Bonds payable
$ 7,815,000
$ - $ (7,815,000)
$ -
$ -
Notes payable
2,099,000
5,989,000 (480,000)
7,608,000
1,567,000
9,914,000
5,989,000 (8,295,000)
7,608,000
1,567,000
Discount on bonds payable
Compensated absences
Termination benefits
Pollution remediation
Totals governmental
activities
(7,084) 7,084
1,463,208 418,393
14,880 -
91,200
(476,119) 1,405,482
(11,453) 3,427
91,200
87,080
3,427
$ 11,476,204 $ 6,414,477 $ (8,782,572) $ 9,108,109 $ 1,657,507
RVA
CITY OF SEBASTIAN, FLORIDA
M Notes to Financial Statements
Notes payable
Florida Gas Tax Revenue Note, due in annual installments of
$97,000 to $121,000 plus interest at 1.94%
through 2023. $ 1,896,000
2013 Infrastructure Sales Surtax Refunding Revenue Note,
Series 2013, due in annual installments of $353,000 to $508,000
plus interest at 0.86% through 2017. 2,730,000
2013 Stormwater Utility Refunding Revenue Note, Series 2013,
due in annual installments of $352,000 to $395,000 plus
interest at 1.73% through 2022. 2,982,000
$ 7,608,000
The following is a summary of business -type activities long-term debt transactions for the year ended
September 30, 2014:
$ 1,567,000 $
108,679 $
72,249 $
9,170
2016
Beginning
89,872
49,950
EndingDue Within
2017
Balance
Additions
Deductions
13112 - One Year
Business -type activities
590,000
56,523
110,549
341
Notes payable
$ 42,972
$ 299,050
$ (57,318)
$ 284,704 $ 72,249
Compensated absences
216,610
22,366
(42,819)
196,157 9
Totals business -type
activities
$ 259,582
$ 321,416
$ (100,137)
$ 480,861 $ 72,258
Annual debt service requirements to maturity for long-term debt are as follows:
Governmental Activities Business -type Activities
Year Ended
September 30, Principal Interest Principal Interest
2015
$ 1,567,000 $
108,679 $
72,249 $
9,170
2016
1,582,000
89,872
49,950
7,126
2017
1,284,000
71,547
51,956
5,120
2018
590,000
56,523
110,549
341
2019
601,000
45,836
-
-
2020-2024
1,984,000
72,617
$ 7,608,000 $ 445,074 $ 284,704 $ 21,757
For the governmental activities, compensated absences, the unfunded OPEB obligation and termination
benefits are generally liquidated by the General Fund. For business -type activities, compensated absences
and unfunded OPEB obligations are allocated to and liquidated by the golf course, airport or building funds.
70
CITY OF SEBASTIAN, FLORIDA
N Notes to Financial Statements
A pollution remediation obligation was recorded for a Florida Department of Environmental (FDEP) Order
dated March 10, 1997. This was related to an incident of petroleum contamination at the Public Works
Department on April 22, 1991. The City was named as the party responsible for the cleanup but FDEP
determined the discharge is eligible under the Petroleum Cleanup Participation Program and will not
compel site rehabilitation prior to funding becoming available from that program. The program has a
funding cap of $400,000, with a 25% required cost share percentage. The City must also pay for a limited
contamination assessment report sufficient to determine the extent of the contamination and cleanup.
Based on the information available, the City estimated its expenditure to be $91,200 dependent on the
extent of work that is eventually required and recorded a long-term liability of $91,200.
9. LEASES
Operating Leases - Lessee
The City is obligated under certain leases for land and golf carts accounted for as operating leases.
Operating leases do not give rise to property rights or lease obligations. Total costs for such leases were
$115,500 for the fiscal year ended September 30, 2014. These include the Airport Fund's lease obligation
for the property used as the City's golf course, and the final year of a lease on the golf carts. The following
is a schedule by years for future minimum rental payments required under operating leases in the business -
type activities that have initial or remaining noncancelable lease terms in excess of one year at September
30, 2014:
Year Ended
September 30, Airport
2015 $ 115,000
2016 115,000
Total $ 230,000
71
CITY OF SEBASTIAN, FLORIDA
M Notes to Financial Statements
Operating Leases - Lessor
The City is the lessor in two communication tower leases with terms of up to fifty-five years. The towers
have a cost of $39,285 and have been fully depreciated. Following is a schedule by year of minimum future
rental income on noncancelable operating leases:
Year Ended Governmental
September 30, Activities
2015
$ 256,511
2016
132,058
2017
137,742
2018
133,013
2019-2023
615,431
2024-2028
440,228
2029-2033
515,957
2034-2038
636,155
2039-2043
789,562
2044-2048
985,352
2049-2053
1,235,235
2054-2055
578,936
Total $ 6,456,180
The Airport Fund is the lessor of various properties (land with a cost basis of $9,060) with lease terms
varying from twenty to thirty years. These include the lease to the Golf Course Fund requiring annual
payments of $115,000 through 2015. Following is a schedule by year of minimum future rental income on
noncancelable operating leases:
Future minimum rental commitments are as follows:
Year Ended Business -type
September 30, Activities
2015
$ 241,821
2016
237,661
2017
237,662
2018
238,242
2019-2023
1,087,480
2024-2028
732,899
2029-2033
528,384
2034-2038
41,002
Total $ 3,345,151
72
CITY OF SEBASTIAN, FLORIDA
N Notes to Financial Statements
10. PROPERTY TAXES
The City is permitted by State law to levy taxes up to 10 mills on assessed valuation. The millage rate levied
by the City for the fiscal year ended September 30, 2014, was 3.7166 mills. Total tax collections were
approximately 96.8% of the total tax levy.
The tax levy of the City is established by City Council. Under Florida law, the assessment of all properties
and the collection of municipal taxes are provided by offices of the County's Property Appraiser and Tax
Collector. Ad Valorem taxes are levied on property values as of January 1. The fiscal year for which taxes
are levied begins October 1. Taxes are due November I and become delinquent on April 1. All taxes unpaid
as of May 30 are subject to a tax certificate sale. Property tax revenues are recognized in the fiscal year for
which they are levied and also become due and payable.
11. CONTINGENT LIABILITIES
Various suits and claims are currently pending against the City. It is impossible for the City to accurately
quantify the exposure involved given the jury's latitude in assessing compensatory and punitive damages,
and the court's latitude in awarding attorney's fees. The City intends to vigorously defend against these
lawsuits and believes it has a good chance of prevailing on their merits. The City is contingently liable with
respect to lawsuits and other claims incidental to the ordinary course of its operations. In the opinion of
management and based on the advice of legal counsel, the ultimate disposition of lawsuits will not have a
material adverse effect on the financial position of the City.
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor
agencies, principally the federal and state governments. Any disallowed claims, including amounts already
collected, may constitute a liability to the applicable funds. The amount, if any, of expenditures that may
be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if
any, to be immaterial.
12. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of or damage to and destruction of assets;
errors and omissions; and natural disasters. The City purchases commercial insurance with various
deductibles for different types of losses. The cost of this insurance is accounted for in the General Fund,
Golf Course Fund, Airport Fund, and Building Fund. Settled claims have not exceeded this commercial
coverage in the past three fiscal years.
73
CITY OF SEBASTIAN, FLORIDA
N Notes to Financial Statements
13. BENEFIT PLANS
Police Officer's Pension Plan
Defined Benefit Pension Plan
Plan Description. The Police Officers' Pension Plan is a Florida Statute Chapter 185 single -employer defined
benefit plan. Only City police officers participate in the Police Pension Plan. The state provides a
contribution to the Police Pension Plan through a distribution of funds collected from insurance premium
taxes. The Pension plan data provided in these Financial Statements are from the actuarial valuation as of
October 1, 2014 to determine the required contribution for the fiscal year ending September 30, 2014.
Although the Police Officers' Pension Plan provides separate reporting, which may be obtained in the
Finance department, it is also a component unit (reporting as a Pension Trust Fund) of the City's financial
reporting entity.
Plan Membership
As of September 30, 2014, employee membership data was as follows:
Retirees and beneficiaries currently receiving benefits 8
Beneficiaries 1
Disability retirees 2
Terminated employees not currently receiving benefits 6
Fully, partially, and non -vested active plan participants 35
52
Benefit Provisions and Contribution Requirements. The Police Officers' Pension Plan provides retirement
and disability benefits to plan members and beneficiaries. This Plan is administered by a separate local
Board of Trustees. Chapter 185, Florida Statutes, as amended governs all benefit provisions of the Plan.
Contribution requirements, in accordance with Chapter 185, Florida Statutes, are established by City
ordinance, as provided in Chapter 58, Article III of the Sebastian City Code. The City Council has the
authority to amend funding requirements.
Funding Policy. The employer, employee, and State contribution requirements are applicable to the Plan
and actuarially determined on a frequency of at least every 3 years in accordance with Florida State
Statute. Administration costs of the pension plan are financed by the Plan. For the 2013-2014 fiscal year,
the employee contribution rate, expressed as a percentage of compensation, was 7.4% and the employer
contribution rate was 20.2%. The employer contribution amounted to $401,103. The State contribution was
$147,868, which represents state shared revenue that is levied on property and casualty insurance
premiums and collected by the State. Contributions by the State that are in excess of the amount allowed
under Florida Statute are not included in the development of the net pension asset, but are considered
part of an excess state monies reserve, to be used for extra benefits. The total excess state monies reserve
included in the pension trust as of September 30, 2014 was $24,388. The State contribution was recognized
and recorded in the general fund and the corresponding expenditure was recorded as public safety
expenditure. The City is required to contribute the remaining amounts to ensure that the Plan is actuarially
sound.
74
CITY OF SEBASTIAN, FLORIDA
N Notes to Financial Statements
For the year ended September 30, 2014 the City's annual pension cost was $527,066, however actual
contributions equaled $524,585, decreasing the net pension asset by $2,481. The required contribution was
determined as part of the October 1, 2014 actuarial valuation using the frozen entry age actuarial cost
method. The actuarial assumptions included: a rate of return on the investment of present and future
assets of 8.0% and projected salary increases of 6.0% per year, including inflation at 3.0%. The plan's
unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on an
closed basis. The remaining amortization period at October 1, 2014, the date of the latest actuarial
valuation, was 26 years.
Three -Year Trend Information
Years Ended Annual Percentage Net Pension
September 30, Pen(siioPnC) Cost Contributed Asset
2012 $ 564,551 99.17% $ 123,133
2013 511,382 101.70% 140,836
2014 527,066 99.53% 138,355
Reserves. All of the net position of the Police Pension Plan are legally reserved for plan participant benefits.
Basis of Accounting. Financial statements are prepared using the accrual basis of accounting. Plan member
contributions are recognized in the period in which the contributions are due. Employer contributions are
recognized when due, and the employer has made formal commitment to provide the contributions.
Benefits and refunds are recognized when due and payable in accordance with the terms of the Plan.
Method Used to Value Investments. Investments are reported at fair value. Short-term investments are
reported at cost, which approximates fair value. Securities traded on a national or international exchange
are valued at the last reported sales price at current exchange rates. Mortgages are valued on the basis of
future principal and interest payments, and are discounted at prevailing interest rates for similar
instruments. Investments that do not have an established market are reported at estimated fair value.
Investments in securities of a single organization (excluding mutual funds and those issued or guaranteed by
the U.S. government) held by the pension plan did not exceed five percent of the total plan assets.
Investment Policy. The plan's policy in regard to the allocation of invested assets is established and may be
amended by the Board of Trustees. The investment policy has been formulated based on consideration of a
wide range of policies and describes the prudent investment process that the Board deems appropriate.
The Plan's asset allocation policy is shown on the following pages.
Rate of Return. For the year ended September 30, 2014, the annual money -weighted rate of return on
pension plan investments, net of pension plan investment expense, was 9.42 percent. The money -weighted
rate of return expresses investment performance, net of investment expense, adjusted for the changing
amounts actually invested.
Concentrations. At September 30, 2014, the Plan held certain investments (other than those issued or
explicitly guaranteed by the U.S. government, mutual funds, external investment pools, or other pooled
investments) in certain organizations that represent 5 percent or more of the Plan's fiduciary net position.
Please see Note 4 for details of these concentrations.
75
CITY OF SEBASTIAN, FLORIDA
M Notes to Financial Statements
Net Pension Asset. The municipal Defined Benefit Plan has been subject to the minimum funding standards
since the adoption of the "Florida Protection of Public Employee Retirement Benefit Act" (Part VII of
Chapter 112, Florida Statutes) in 1980. Accordingly, the sponsor has funded the actuarially determined
required contributions for all years from October 1, 1987, through the transition date, October 1, 1997.
Thus, the NPO on October 1, 1997, was $0.
The following table shows the components of the City's annual pension cost for the year ended September
30, 2014, the amount actually contributed to the plan, and the changes in the City's net pension asset:
September 30,
2014
Actuarially determined contribution $ 524,585
Interest on net pension asset (11,267)
Adjustment to actuarially determined contribution 13,748
Annual pension cost 527,066
Contributions made 524,585
Decrease in net pension asset (2,481)
Net pension asset, beginning of year 140,836
Net pension asset, end of year $ 138,355
Funded Status and Funding Progress. As of October 1, 2014, the most recent actuarial valuation date, the
plan was 93.80 percent funded. The actuarial accrued liability for benefits was $11,997,287 and the
actuarial value of assets was $11,253,240, resulting in an unfunded actuarial accrued liability (UAAL) of
$744,047. The covered payroll (annual payroll of active employees covered by the plan) was $2,196,343,
and the ratio of the UAAL to the covered payroll was 33.88 percent.
Net Pension Liability. The components of the net pension liability for the Police Officers' Pension Plan at
September 30, 2014 were as follows:
Total pension liability $ 12,547,129
Plan fiduciary net position (11,253,240)
Net pension liability
$ 1,293,889
Plan fiduciary net position as a percentage of total pension liability is 89.7%.
Actuarial Assumptions. The total pension liability was determined by an actuarial valuation as of October
1, 2013 updated to September 30, 2014 using the following actuarial assumptions applied to all
measurement periods.
Inflation 3.00%
Salary increases 3.8% - 16.0%
Investment rate of return 7.75%
76
CITY OF SEBASTIAN, FLORIDA
N Notes to Financial Statements
Mortality is based on the RP -2000 Table with no projection - Based on the study of over 650 public safety
funds, this table reflects a 10% margin for future mortality improvements. (Disabled lives set forward 5
years).
The actuarial assumptions used in the October 1, 2013 valuation were based on the results of an actuarial
experience study for the period 1999-2012.
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which best -estimate ranges of expected future real rates of return (expected returns, net of
pension plan investment expenses and inflation) are developed for each major asset class. These ranges are
combined to produce a long term expected rate of return by weighing the expected future real rates of
return by the target asset allocation percentage and by adding expected inflation. Best estimates of
arithmetic real rates of return for each major asset class included in the pension plan's target asset
allocation as of September 30, 2015 are summarized in the following table:
Long-term Money -
Target Expected Real Weighted Rate
Asset Class Allocation Rate of Return of Return
Domestic equity
50.00%
7.80% 3.90%
International equity
10.00%
7.70% 0.77%
Fixed income
40.00%
2.30% 0.92%
Total
100.00%
5.59%
Inflation
3.00%
Risk adjustments
-0.84%
Investment rate of return
7.75%
Discount Rate. The discount rate used to measure the total pension liability was 7.75 percent. The
projection of cash flows used to determine the discount rate assumed that plan member contributions will
be made at the current contribution rate and that sponsor contributions will be made at rates equal to the
difference between actuarially determined contribution rates and the member rate. Based on those
assumptions, the pension plan's fiduciary net position was projected to be available to make all projected
future benefit payments of current plan members. Therefore, the long-term expected rate of return on
pension plan investments was applied to all period of projected benefit payments to determine the total
pension liability.
77
CITY OF SEBASTIAN, FLORIDA
N Notes to Financial Statements
Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following presents the net
pension liability of the City, calculated using the discount rate of 7.75 percent, as well as what the City's
net pension liability would be if it were calculated using a discount rate that is one percentage point lower
(6.75 percent) or one percentage point higher (8.75 percent) than the current rate.
One Percent
Current
One Percent
Decrease
Discount Rate
Increase
6.75%
7.75%
8.75%
Net Pension Liability $ 2,829,296
$ 1,293,889
$ (6,004)
The schedule of employer contributions, presented as required supplementary information (RSI) following
the notes to the financial statements, presents trend information about the amounts contributed to the plan
by employers in comparison to the ARC, an amount that is actuarially determined in accordance with the
parameters of GASB Statement No 50. The ARC represents a level of funding that, if paid on an ongoing
basis, is projected to cover normal cost for each year and amortize any unfunded actuarial liabilities (or
funding excess) over a period not to exceed thirty years.
Coastal Florida Public Employees Association
Negotiated Defined Benefit Pension Plan
Plan Description. The Communication Workers of America / International Typographical Union Negotiated
Pension Plan (NPP), which began in 1967, is a multi-employer cost-sharing, defined benefit plan. The Plan is
available to any Coastal Florida Public Employees Association bargaining unit member, and benefits are
portable from one contributing employer to another.
Normal Pension. Minimum age 65: 5 years of Service Credit required if any portion of service credit was
earned after January 1, 1989. 10 years of Service Credit required if employees' coverage ended before
January 1, 1989. Once the Service Credit amount is accrued, the employee is vested and cannot lose the
right to a pension.
Early Pension. Minimum age 62: 20 years of Service Credit required if employed after January 1, 1989. 25
years of Service Credit required if employment ended before January I, 1993. Pension amounts are
permanently reduced based on age on the effective date, because the payments are expected to be made
for a longer period of time.
Disability Pension. No minimum age and the pension amount is not reduced for age; there must be a Social
Security Disability Award, 10 years of actual Service Credit and a contribution for covered employment must
have been made within three calendar years preceding the entitlement date to Social Security Disability
Pension. An application must be filed with the Plan within 6 months of the Social Security Notice of Award
date to receive pension retroactive to the Social Security entitlement date.
Lump Sum Disability Benefit. If the employee has been awarded a Social Security Disability Award with the
date of entitlement before May 1, 2009 and is vested, but not immediately eligible to receive any pension
described above, the employee may be eligible for a lump sum disability benefit.
78
CITY OF SEBASTIAN, FLORIDA
N Notes to Financial Statements
Death Benefit. If the employee dies before becoming a pensioner and has at least $250 contributed on the
employees' behalf, a lump sum death benefit equal to total contributions credited on the employees' behalf
or 36 times the Normal Pension amount, if greater, will be paid to employees' beneficiary. If the employee
is married at the time of death, the spouse will have the choice of a lump sum or a monthly survivor
benefit.
Withdrawal Benefit. If the employee did not earn enough Service Credit to qualify for a Normal Pension,
the employee may be eligible for a lump sum withdrawal benefit, based on total contributions, after the
employee has incurred a break in service. Benefit Provisions and Contribution Requirements: The NPP
provides retirement and disability benefits to plan members and beneficiaries. The plan is administered at
the Plan Office in Colorado Springs, Colorado. Contribution requirements are established by the CWA
contract, effective date October 1, 2011, which is negotiated every 3 years, and approved by City Council.
Benefit Provisions and Contribution Requirements. The NPP provides retirement and disability benefits to
plan members and beneficiaries. The plan is administered at the Plan Office in Colorado Springs, Colorado.
Contribution requirements are established by the CWA contract, effective date October 1, 2013, which is
negotiated every 3 years, and approved by City Council.
Funding Policy. Administration costs of the pension plan are financed by the plan. The employer
contribution rate, expressed as a percentage of compensation, was 9.0% for the 2012-2013 fiscal year.
Employees do not contribute to this plan. Contributions to the CWA Pension Plan for the fiscal years ended
September 30, 2012, 2013, and 2014 were $210,258, $202,612 and 204,361 respectively, which are equal to
100% of the required contribution for each year.
Defined Contribution 401(a) Plan
Plan Description. The ICMA Retirement Corporation's 401 Retirement Plan is a Defined Contribution Plan
"qualified" under Section 401(a) of the Internal Revenue Code. Each participant has a plan account to which
contributions are made. Plan benefits are based on the total amount of money in the employees' account at
retirement or other eligible event. The Plan is available to all management staff and may be rolled over to
another "qualified" employer plan that accepts rollovers, or Traditional IRA's.
Periodic Payments. Retirement benefits can be paid monthly, quarterly, semi-annual (at six-month
intervals only) or annual payments until assets are fully paid out.
Rollover. Retirement benefits can be rolled over to another employer plan (including a 457 deferred
compensation plan) that accepts rollovers, or to a Traditional IRA.
Lump Sum. Retirement benefits can be paid either partially or by total distribution of the employees'
account balance.
Annuities. Retirement benefits can be utilized to purchase an annuity.
Benefit Provisions and Contribution Requirements. The 401 provides retirement benefits to plan members
and beneficiaries. The plan is administered by the ICMA Retirement Corporation. Contribution
requirements are established by the City of Sebastian, Management Benefit Package, revised October 1,
2006, and approved by the City Manager.
`A
CITY OF SEBASTIAN, FLORIDA
N Notes to Financial Statements
Funding Policy. The administration costs of the pension plan are financed by the Plan. The employer
contribution rate, expressed as a percentage of compensation, was 9% for the 2013-14 fiscal year.
Employees do not contribute to this Plan. Contributions to the 401 Defined Contribution Plan for the fiscal
years ended September 30, 2012, 2013, and 2014 were $109,864, $110,184 and $204,361, respectively,
which are equal to 100% of the required contribution for each year.
14. OTHER POSTEMPLOYMENT BENEFITS
Plan description. Pursuant to Section 112.0801, Florida Statutes, the City is required to permit
participation in the health insurance program by retirees and their eligible dependents at a cost to the
retiree that is no greater than the cost at which coverage is available for active employees. The City, by
policy, has elected to provide qualified retirees with partial subsidy. In this respect, the City operates a
single -employer plan.
Employees are eligible to receive a partial subsidy from the Retiree Medical Plan upon retirement, if they
are enrolled in the active medical plan immediately prior to retiring and achieved at least 20 years of
service in a full time capacity. If eligible, the City pays 50% of the costs of single coverage group health
insurance for up to 2 years after retirement.
Funding Policy. Based on GASB Statement 43 and 45, which set forth the guidelines for treatment of other
postemployment benefits, the City had an actuary calculate future funding requirements in 2014. The
actuary's 2014 estimate, using the Entry Age Normal (level percentage of pay) Method, produced an
unfunded obligation of $50,901 and an annual required contribution of $4,601. The City elected to fund the
OPEB obligation on a pay-as-you-go basis. The entire unfunded obligation was recognized in the government.
wide financial statements. The enterprise fund portion ($1,963) was also recognized in the enterprise fund
financial statements. As such, a separate audited GAAP basis postemployment benefit plan report is not
available.
Annual OPEB Cost and Net OPEB Obligation. The City's annual other postemployment benefit (OPEB) cost is
calculated based on the annual required contribution of the employer (ARC). The ARC represents a level of
funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any
unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years.
The following table shows the components of the City's annual OPEB cost for the year ended September 30,
2014, the amount actually contributed to the plan, and changes in the City's net OPEB obligation:
Annual required contribution $ 4,601
Interest on net OPEB obligation 1,011
Adjustment to annual required contribution (1,405
Net OPEB cost 4,207
Contributions made (8,458)
Decrease in net OPEB obligation (4,251)
Net OPEB obligation, beginning of year 25,273
Net OPEB obligation, end of year $ 21,022
:1,
CITY OF SEBASTIAN, FLORIDA
N Notes to Financial Statements
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net OPEB
obligation for fiscal year 2014 and the previous two years were as follows:
Three -Year Trend Information
Percentage of
Annual OPEB
Annual OPEB Cost Net OPEB
Year Ended Cost Contributed Obligation
2012 $ 3,800 974.6% $ 34,551
2013 3,674 352.5% 25,273
2014 4,207 201.0% 21,022
Funded Status and Funding Progress. As of October 1, 2014, the date of the most recent actuarial
valuation, the actuarial accrued liability for benefits was $50,901, all of which was unfunded. The covered
payroll (annual payroll of active employees covered by the plan) was $5,933,331, and the ratio of the UAAL
to the covered pavroll was 0.9 percent.
The actuarial valuations involve estimates of the value of reported amounts and assumptions about the
probability of events far into the future. Actuarially determined amounts are subject to continual revision
as actual results are compared to past expectations and new estimates are made about the future.
Calculations are based on the types of benefits provided with the plan at the time of each valuation and on
the pattern of sharing of costs between the employer and plan members to that point. Calculations reflect a
long-term perspective and assumptions used include techniques designed to reduce short-term volatility in
actuarial accrued liabilities and actuarial value of assets. The schedule of funding progress shown below is
required to present multi -trend information about whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liability for benefits. The City elected to fund the
OPEB on a pay-as-you-go basis and consequently, reports a zero balance for the actuarial value of assets.
Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on
the substantive plan (the plan as understood by the employer and plan members) and include the types of
benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs
between the employer and plan members to that point. The actuarial methods and assumptions used
include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued
liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.
The required contribution was determined as part of the October 1, 2014 actuarial valuation using the entry
age normal (level percentage of pay) actuarial funding method. The actuarial assumptions included (a) 4
percent investment rate of return (net of administrative expenses), (b) a 3 percent payroll growth rate, (c)
a 3 percent inflation rate, and (d) an annual healthcare trend rate of 9 percent initially, reduced by
decrements to an ultimate rate of 5 percent in 2017. The actuarial assumptions utilized the RP -2000
Combined Healthy Mortality Table projected to 2013. The plan's unfunded actuarial accrued liability is
being amortized as a level dollar of projected payroll on an open basis. The remaining amortization period
at October 1, 2014 was 29 years.
81
CITY OF SEBASTIAN, FLORIDA
M Notes to Financial Statements
Termination Benefits
The City offers to pay 50% of the cost of single coverage group (health only) insurance for up to two years
for employees retiring after twenty years of service in a full-time capacity. During the year ended
September 30, 2014, no retiring employees made this election, and $3,427 was recorded at year end as the
total accrued termination benefits in the governmental activities of the government -wide financial
statements.
82
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
15. FUND BALANCES - GOVERNMENTAL FUNDS AV
In accordance with GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, the City classifies fund
balances based primarily on the extent to which it is bound to observe constraints imposed upon the use of the resources reported in
governmental funds. Detailed information on fund balances of governmental funds is as follows:
Discretionary Sales
Discretionary Riverfront Surtax Revenue Transportation
General Fund Sales Tax Redevelopment Note 2013 Improvements Nonmajor Funds J
Nonspendable:
Inventory $ 57,584 $ $ $ $ $ $ 57,584
Prepaids 111,745 503 112,248
Long-term advances 200,000 551,911 - 751,911
Permanent fund corpus - 837,659 837,659
Total,nonspendable 369,329 551,911 503 - 837,659 1,759,402
Restricted for:
Debt service - - 516,764 168,169 684,933
Infrastructure 2,444,503 - 156,668 2,601,171
Redevelopment - 379,551 - 379,551
Stormwater - - 44,915 44,915
Law enforcement 7,969 - - 46,380 54,349
Total restricted 7,969 2,444,503 379,551 516,764 416,132 3,764,919
Committed for:
Recreational system
development - - - - 595,672 595,672
Development of
public parking 29,335 29,335
Total committed 625,007 625,007
Assigned for:
General employee events 1,655 - 1,655
Law enforcement events 5,474 5,474
Total assigned 7,129 7,129
Unassigned 5,348,905 (32,048) (32,827) 5,284,030
Total fund balances,
governmental funds $ 5,733,332 $ 2,996,414 $ 380,054 $ 516,764 $ (32,048) $ 1,845,971 $ 11,440,487
83
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
16. NET INVESTMENT IN CAPITAL ASSETS
The composition of net investment in capital assets as of September 30, 2014, was as follows:
Capital assets:
Capital assets not being depreciated
Capital assets being depreciated, net
Related debt:
Total notes payable
Net investment in capital assets
0000■
84
Governmental Business -type
Activities Activities
$ 8,401,757 $ 271,685
32,849,769 10,380,369
41,251,526 10,652,054
7,608,000 284,704
$ 33,643,526 $ 10,367,350
REQUIRED SUPPLEMENTARY INFORMATION
85
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Employees' Retirement Plan
Statement of Changes in Net Pension Liability and Related Ratios
Single -employer Pension Trust Fund
Total pension liability
Service cost
Interest on total pension liability
Change in excess state money
Benefit payments, including refunds of employee contributions
Net change in total pension liability
Total pension liability, beginning of year
Total pension liability, end of year
Plan fiduciary net position
Employer contributions
State contributions
Employee contributions
Pension plan net investment income
Benefit payments
Administrative expense
Net change in plan fiduciary net position
Net pension liability, beginning of year
Net pension liability, end of year
Net pension liability
Plan fiduciary net position as a percentage of total pension liability
Covered employee payroll
Net pension liability as a percentage of covered employee payroll
Fiscal Year
Fiscal Year
Ending
Ending
September 30,
September 30,
2014
2013
$ 396,146 $
367,653
914,243
853,018
24,386
-
(452,892)
(465,435)
881,883
755,236
11,665,246 10,910,010
$ 12,547,129 $ 11,665,246
$ 401,103 $
396,603
147,868
145,961
160,494
154,683
951,910
1,029,818
(452,892)
(465,435)
(27,815)
(32,153)
1,180,668
1,229,477
10,072,572 8,843,096
$ 11,253,240 $ 10,072,573
$ 1,293,889 $ 1,592,673
89.69% 86.35%
$ 2,106,767 $ 2,003,398
61.42% 79.50%
Note: GASB 67 was implemented in fiscal year 2014. This schedule is being built prospectively. Ultimately, 10 years
of data will be presented.
86
CITY OF SEBASTIAN, FLORIDA
. Required Supplementary Information
Employees' Retirement Plan
Schedule of the Net Pension Liability
Single -employer Pension Trust Fund
Schedule of Investment Returns
Single -employer Pension Trust Fund
Fiscal Year
Ending Annual
September 30, Return (')
2014 9.42%
(') Annual money -weighted rate of return, net of investment expenses
Note: GASB 67 was implemented in fiscal year 2014. This schedule is being built prospectively. Ultimately, 10 years
of data will be presented.
Schedule of Funding Progress
Single -employer Pension Trust Fund
Actuarial
Plan Net
Position as a
Net Pension
Fiscal Year
Percentage
Liability as a
Ending Total Pension
Plan Net
Net Pension
of Total
Percentage of
September 30, Liability
Position
Liability
Pension Covered Payroll
Covered Payroll
2014 $ 12,547,129
$ 11,253,240
$ 1,293,889
89.69% $ 2,106,767
61.42%
2013 11,665,246
10,072,573
1,592,673
86.35% 2,131,399
74.72%
Note: GASB 67 was implemented in fiscal year 2014.
This schedule
is being built prospectively. Ultimately, 10 years
of data will be presented.
(a / b)
(c)
((b -a) / c)
10/1/2006
Schedule of Investment Returns
Single -employer Pension Trust Fund
Fiscal Year
Ending Annual
September 30, Return (')
2014 9.42%
(') Annual money -weighted rate of return, net of investment expenses
Note: GASB 67 was implemented in fiscal year 2014. This schedule is being built prospectively. Ultimately, 10 years
of data will be presented.
Schedule of Funding Progress
Single -employer Pension Trust Fund
87
Actuarial
Accrued
UAAL as a
Actuarial
Liability
Unfunded
Percentage
Actuarial
Value of
(AAL) -
AAL
Funded
Covered
of Covered
Valuation
Assets
Entry Age
(UAAL)
Ratio
Payroll
Payroll
Date
(a)
(b)
(b -a)
(a / b)
(c)
((b -a) / c)
10/1/2006
$ 4,711,294
$ 5,389,815
$ 678,521
87.41%
$ 1,769,613
38.34%
10/1/2008
5,474,816
6,127,531
652,715
89.35%
2,143,131
30.46%
10/1/2010
7,086,302
8,029,402
943,100
88.25%
2,205,042
42.77%
10/1/2012
8,843,096
9,793,255
950,159
90.30%
1,893,717
50.17%
10/1/2013
10,072,572
10,924,778
852,206
92.20%
2,131,399
39.98%
10/1/2014
11,253,240
11,997,287
744,047
93.80%
2,196,343
33.88%
87
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Employees' Retirement Plan
Schedule of Employer Contributions
Single -employer Pension Trust Fund
Other Postemployment Benefits Plan
Actuarial
Actuarial Value of
Valuation Assets
Date (a)
9/30/2010 $
9/30/2011
9/30/2012
9/30/2013
9/30/2014
Schedule of Funding Progress
Other Postemployment Benefits Plan
Actuarial
Annual
Accrued
Percentage
Liability
Year Ended
Required
City
State
Percentage
September 30,
Contributions
Contribution
Contribution
Contributed
2008
$ 456,928
$ 376,769
$ 122,800
109.33%
2009
557,439
404,104
137,782
97.21%
2010
701,998
566,910
134,852
99.97%
2011
736,420
602,943
133,477
100.00%
2012
559,868
436,386
123,482
100.00%
2013
506,560
396,603
123,482
102.67%
2014
524,585
401,103
123,482
100.00%
Other Postemployment Benefits Plan
Actuarial
Actuarial Value of
Valuation Assets
Date (a)
9/30/2010 $
9/30/2011
9/30/2012
9/30/2013
9/30/2014
Schedule of Funding Progress
Other Postemployment Benefits Plan
Actuarial
UAAL as a
Accrued
Percentage
Liability
Unfunded
(AAL) -
AAL
Entry Age
(UAAL)
(b)
(b -a)
$ 98,100
$ 98,100
67,500
67,500
50,901
50,901
50,901
50,901
50,901
50,901
Schedule of Employer Contributions
Other Postemployment Benefits Plan
UAAL as a
Percentage
Funded Covered
of Covered
Ratio Payroll
Payroll
(a / b) (c)
((b -a) / c)
$ 6,424,614
2%
6,426,614
1%
5,933,331
1%
5,693,181
1
6,044,900
1%
Schedule of Employer Contributions
Other Postemployment Benefits Plan
Annual
Year Ended
Required
Percentage
September 30,
Contributions
Contributed
9/30/2010
$ 4,600
875%
9/30/2011
4,700
877%
9/30/2012
3,800
975%
9/30/2013
3,674
353%
9/30/2014
4,207
201%
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
i•
CITY OF SEBASTIAN, FLORIDA
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2014
Assets
Cash and cash equivalents
Investments
Due from other governments
Total assets
Liabilities
Accounts payable and
accrued liabilities
Due to other funds
Total liabilities
Fund balances:
Nonspendable
Restricted
Committed
Unassigned
Total fund balances
Total liabilities and
fund balances
Special Revenue Funds
Local Law
Option Parking Recreation Stormwater Enforcement
Gas Tax In -Lieu -of Impact Fee Utility Forfeiture
$ 120,714 $ - $ 579,132 $ 33,966 $ 4,208
- 32,169 16,540 - 49,489
48,575 - - 10,949
$ 169,289 $ 32,169 $ 595,672 $ 44,915 $ 53,697
$ 12,621 $ 2,834 $ - $ - $ -
- - 7,317
12,621 2,834 7,317
156,668
29,335 595,672
44,915 46,380
156,668 29,335 595,672 44,915 46,380
$ 169,289 $ 32,169 $ 595,672 $ 44,915 $ 53,697
a
Debt Service Capital Projects Funds Permanent
Stormwater Total
Utility General Stormwater Nonmajor
Revenue Capital Capital Utility Governmental
Bonds 2003 Improvements Projects Improvements Cemetery Funds
$ 168,169 $ $ 36,478 $ 8,933 $ 581,249 $ 1,532,849
- - - 256,410 354,608
- - - - 59,524
$ 168,169 $ $ 36,478 $ 8,933 $ 837,659 $ 1,946,981
$ $ 32,827 $ 36,478 $ 8,933 $ $ 93,693
- - - 7,317
32,827 36,478 8,933 101,010
- 837,659 837,659
168,169 - 416,132
- 625,007
- (32,827) - (32,827)
168,169 (32,827) 837,659 1,845,971
$ 168,169 $ $ 36,478 $ 8,933 $ 837,659 $ 1,946,981
91
CITY OF SEBASTIAN, FLORIDA
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances - Nonmajor Governmental Funds
For the Year Ended September 30, 2014
Special Revenue Funds
Local Law
Option Parking Recreation Stormwater Enforcement
Gas Tax In -Lieu -of Impact Fee Utility Forfeiture
Revenues
Taxes:
Motor fuel $
555,934 $
$
$
$
Intergovernmental
9,758
Impact fees
-
168,350
-
Chargesforservices
-
985,390
-
Fines
-
-
-
1,900
Investment earnings
57
(21)
1,805
1,568
(54)
Contributions and donations
-
-
-
-
141
Otherrevenues
2,862
18,241
-
-
-
Total revenues
568,611
18,220
170,155
986,958
1,987
Expenditures
Current:
Public safety
-
-
-
-
12,286
Physical environment
-
47,396
-
Transportation
205,872
-
Debt Service:
Principal
203,000
Interest and fiscal charges
39,741
-
-
Capital outlay
-
29,322
-
11,000
Total expenditures
448,613
29,322
-
47,396
23,286
Revenues over (under) expenditures
119,998
(11,102)
170,155
939,562
(21,299)
Other financing sources (uses)
Transfers in
-
-
-
Transfers out
(229)
(123,410)
(989,067)
Total other financing sources (uses)
(229)
(123,410)
(989,067)
Net change in fund balances
119,769
(11,102)
46,745
(49,505)
(21,299)
Fund balances, beginning of year
36,899
40,437
548,927
94,420
67,679
Fund balances, end of year $
156,668 $
29,335 $
595,672 $
44,915 $
46,380
92
Debt Service Capital Projects Funds Permanent
Stormwater Total
Utility General Stormwater Nonmajor
Revenue Capital Capital Utility Governmental
Bonds 2003 Improvements Projects Improvements Cemetery Funds
$ $ $ $ $ $ 555,934
9,758
168,350
70,585 1,055,975
- 1,900
328 1,385 5,068
- 15,501 - 15,642
38,958 - 60,061
39,286 15,501 71,970 1,872,688
12,286
47,396
- 205,872
233,000 436,000
230,413 - - - 270,154
- 133,026 542,623 485,410 1,201,381
463,413 133,026 542,623 485,410 - 2,173,089
(424,127) (117,525) (542,623) (485,410) 71,970 (300,401)
408,360
84,698
542,623 485,410 -
1,521,091
-
-
- - (5,638)
(1,118,344)
408,360
84,698
542,623 485,410 (5,638)
402,747
(15,767)
(32,827)
- - 66,332
102,346
183,936
771,327
1,743,625
$ 168,169 $
(32,827) $
$ $ 837,659
$ 1,845,971
93
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Local Option Gas Tax
For the Year Ended September 30, 2014
Revenues
Taxes:
Motor fuel
Intergovernmental
Investment earnings
Miscellaneous revenue
Total revenues
Expenditures
Current:
Transportation
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Revenues over (under) expenditures
Other financing sources
Transfers out
Net changes in fund balance
Fund balance, beginning of year
Fund balance, end of year
Original
Budget
$ 544,000 $
9,474
1,656
Final
Budget Actual
Actual Over
(Under) Final
Budget
544,000 $ 555,934 $ 11,934
9,474 9,758 284
1,656 57 (1,599)
555,130 555,130
2,862 2,862
568,611 13,481
243,000
243,000
205,872
(37,128)
203,000
203,000
203,000
39,741
39,741
39,741
485,741
485,741
448,613
(37,128)
69,389
69,389
119,998
50,609
(75,000)
(84,149)
(229)
83,920
(5,611)
(14,760)
119,769
134,529
36,899
36,899
36,899
-
$ 31,288 $
22,139 $
156,668 $
134,529
94
CITY OF SEBASTIAN, FLORIDA
Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Parking In -Lieu -Of Special Revenue Fund
For the Year Ended September 30, 2014
Revenues
Investment earnings
Otherrevenues
Total revenues
Expenditures
Capital outlay
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Original Final
Budget Budget
$ 85 $ 85 $
13,776 13,776
Actual Over
(Under) Final
Actua Budget
(21) $ (106)
18,241 4,465
13,861
13,861
18,220
4,359
-
31,138
29,322
29,322
13,861
(17,277)
(11,102)
(24,963)
40,437
40,437
40,437
$ 54,298 $
23,160 $
29,335 $
(24,963)
95
CITY OF SEBASTIAN, FLORIDA
Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Recreation Impact Fee Special Revenue Fund
For the Year Ended September 30, 2014
Revenues
Impact fees
Investment earnings
Total revenues
Expenditures
Current:
Culture and recreation
Revenue over (under) expenditures
Other financing sources (uses)
Transfers out
Net change in fund balances
Fund balance, beginning of year
Fund balance, end of year
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actua
Budget
$ 35,000
$ 35,000 $
168,350
$ 133,350
1,569
1,569
1,805
236
36,569
36,569
170,155
133,586
(10,000)
10,000
-
10,000
46,569
26,569
170,155
123,586
(80,000)
(161,315)
(123,410)
(43,410)
(33,431)
(134,746)
46,745
80,176
548,927
548,927
548,927
-
$ 515,496
$ 414,181 $
595,672
$ 80,176
CITY OF SEBASTIAN, FLORIDA
Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Stormwater Utility Special Revenue Fund
For the Year Ended September 30, 2014
Revenues
Charges for services
Investment earnings
Total revenues
Expenditures
Current:
Physical environment
Revenues over (under) expenditures
Other financing uses
Transfers out
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Original Final
Budget Budget
$ 977,788 $ 977,788 $
5,933 5,933
983,721 983,721
25,100
958,621
25,100
958,621
Actual Over
(Under) Final
Actua Budget
985,390 $ 7,602
1,568 (4,365)
986,958 3,237
47,396
939,562
22,296
(19,059)
(1,034,720) (1,032,291) (989,067) 45,653
(76,099) (73,670) (49,505) 26,594
94,420 94,420 94,420 -
$ 18,321 $ 20,750 $ 44,915 $ 26,594
97
CITY OF SEBASTIAN, FLORIDA
Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Law Enforcement Forfeiture Special Revenue Fund
For the Year Ended September 30, 2014
Revenues
Fines
Investment earnings
Contributions
Total revenues
Expenditures
Current:
Public safety
Capital outlay
Total expenditures
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
11,093
12,286
1
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
$ 8,000
$ 8,000
$ 1,900
$ (6,100)
185
185
(54)
(239)
2,000
2,000
141
(1,859)
10,185
10,185
1,987
(8,198)
11,093
12,286
12,286
11,000
11,000
11,000
- 22,093
23,286
23,286
10,185 (11,908)
(21,299)
(31,484)
67,679 67,679
67,679
$ 77,864 $ 55,771 $
46,380 $ (31,484)
CITY OF SEBASTIAN, FLORIDA
Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Stormwater Utility Revenue Note Debt Service Fund
For the Year Ended September 30, 2014
Revenues
Miscellaneous revenue
Investment earnings
Total expenditures
Expenditures
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Revenues over (under) expenditures
Other financing sources
Transfers in
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
j
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actua
Budget
$ -
$ - $
38,958
$ 38,958
171
171
328
157
171
171
39,286
39,115
305,000
305,000
233,000
(72,000)
137,490
137,490
230,413
92,923
442,490
442,490
463,413
20,923
(442,319)
(442,319)
(424,127)
18,192
442,319
442,319
408,360
(33,959)
-
-
(15,767)
(15,767)
183,936
183,936
183,936
$ 183,936
$ 183,936 $
168,169
$ (15,767)
j
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100
AGENCY FUND
101
CITY OF SEBASTIAN, FLORIDA
Combining Statement of Changes in Assets and Liabilities
Agency Fund
For the Year Ended September 30, 2014
Balance
October 1,
2013 Additions
Performance Deposits
Assets
Cash and cash equivalents
Investments, at fair value
Total assets
Liabilities
Performance deposits held in escrow
Balance
September 30,
Deletions 2014
$ 11,930 $ $ $ 11,930
220,000 220,000
$ 231,930 $ $ $ 231,930
$ 231,930 $
102
$ - $ 231,930
CAPITAL ASSETS
103
CITY OF SEBASTIAN, FLORIDA
Comparative Schedule by Source
Capital Assets Used in the Operation of Governmental Fund
September 30, 2014
Governmental funds capital assets
Land
Buildings and structures
Non -building improvements
Machinery and equipment
Infrastructure
Construction in progress
Total governmental funds capital assets
Investment in governmental funds capital assets (by sources)
Federal grants
State grants
County grants
General Fund
Law enforcement trust fund
Recreational impact fee
Stormwater utility fee
Riverfront redevelopment
Cemetery trust fund
Donations
Sales taxes
Motor fuel taxes
Revenue bond debt
Parking in Lieu of Fee
Capital projects
Total investment in governmental funds capital assets
104
2014 2013
$ 8,319,588
$ 8,319,588
12,545,658
12,488,546
6,730,855
6,630,200
7,911,956
8,023,943
37,856,694
36,475,602
82,169
120,742
$ 73,446,920 $ 72,058,621
5,330,341
2,376,907
717,371
10,435,535
66,288
2,115,679
6,507,746
2,094,387
539,509
2,678,221
19,530,001
6,920,764
14,022,676
29,326
82,169
5,330,341
2,376,907
717,371
10,976,555
54,784
1,992,269
6,405,211
1,685,267
539,509
2,693,881
18,222,344
6,920,764
14,022,676
120,742
$ 73,446,920 $ 72,058,621
CITY OF SEBASTIAN, FLORIDA
Schedule of Activities by Function
Capital Assets Used in the Operation of Governmental Funds
September 30, 2014
Machinery
Non -Building and
Functions / Programs Land Buildings Improvements Equipment Infrastructure Total
General government:
- 130,489
82,419
156,858 674 370,440
Special operations
Legislative
$ $ $
$
784 $
$ 784
City manager
3,744,094
School resource
3,690
3,690
City clerk
Road patrol
2,308,392 1,040,589
222,288
222,288
Finance
572,181
1,100
52,035
53,135
MIS
5,841
53,131
668,641
727,613
Facilities maintenance
136,430
21,187
130,586
288,203
Growth management
- 85,555
-
56,867
142,422
Non -departmental
3,646,929 6,184,990
126,636
204,375
52,699 10,215,629
Total general government
3,646,929 6,412,816
202,054
1,339,266
52,699 11,653,764
Public safety:
- 130,489
82,419
156,858 674 370,440
Special operations
- - -
54,625
54,625
Administration
9,560 3,347,154 89,322
298,058
3,744,094
School resource
- - -
44,077
44,077
Road patrol
2,308,392 1,040,589
2,551,709
2,551,709
Community policing
572,181
13,863
13,863
Code enforcement
-
53,779
53,779
Investigations
1,700
211,477
213,177
Support services
-
51,110
51,110
Communications
16,404
187,004
203,408
Building department
- - -
38,430
38,430
Total public safety
9,560 3,347,154 107,426
3,504,132
6,968,272
Transportation:
Central garage
- 130,489
82,419
156,858 674 370,440
Roads and drainage
47,125 162,044
1,015,285
880,526 16,587,940 18,692,920
Total transportation
47,125 292,533
1,097,704
1,037,384 16,588,614 19,063,360
Economic environment:
825,974
Non -departmental
2,308,392 1,040,589
6,562
- - 3,355,543
Physical environment:
Stormwater
1,850
1,406,723
19,408,299
20,816,872
Cemetery
572,181
82,019
78,354
70,703
22,717
825,974
Total physical environment
572,181
82,019
80,204
1,477,426
19,431,016
21,642,846
Culture/ recreation:
Parks and recreation
1,735,401
1,370,547
5,236,905
553,748
1,784,365
10,680,966
Total
$ 8,319,588
$ 12,545,658 $
6,730,855 $
7,911,956
$ 37,856,694
73,364,751
Construction in progress
Total
105
82,169
$ 73,446,920
CITY OF SEBASTIAN, FLORIDA
Schedule of Changes in Activities by Function
Capital Assets Used in the Operation of Governmental Funds
September 30, 2014
Functions / Programs
General government:
Judicial
City manager
City clerk
Administrative services
MIS
Facilities maintenance
Growth management
Non -departmental
Total general government
Public safety:
Special operations
Administration
School resource
Road patrol
Community policing
Code enforcement
Investigations
Support services
Communications
Building department
Total public safety
Transportation:
Central garage
Roads and drainage
Total transportation
Economic environment:
Non -departmental
Physical environment:
Capital Assets Capital Assets
October 1, Transfers Transfers September 30,
2013 Additions Disposals In Out 2014
$ 1,383 $ - $ 599 $ $ $ 784
1,612 2,078 - 3,690
24,352 2,970 194,966 222,288
54,722 1,520 - - 3,107 53,135
715,639 238,452 36,241 4,729 194,966 727,613
271,806 20,934 29,157 24,620 - 288,203
142,422 - - - 142,422
10,215,629 10,215,629
11,427,565 265,954 65,997 224,315 198,073 11,653,764
95,223
-
39,747
851
54,625
3,727,344
20,500
3,750
-
3,744,094
69,943
-
1,000
24,866
44,077
2,440,044
194,037
82,372
-
2,551,709
13,863
-
-
-
13,863
51,947
26,452
-
- 24,620
53,779
190,969
1,299
3,957
24,866 -
213,177
53,111
-
2,001
-
51,110
209,030
5,622
203,408
41,284
2,083
771
38,430
6,892,758 242,288 140,532 24,866 51,108 6,968,272
368,875 1,565 - 370,440
17,858,671 1,022,343 188,094 18,692,920
18,227,546 1,023,908 188,094 19,063,360
3,355,543 - - 3,355,543
Stormwater
20,608,156
574,566
365,850
20,816,872
Cemetery
815,856
10,118
-
825,974
Total physical environment
21,424,012
584,684
365,850
21,642,846
Culture/ recreation:
Parks and recreation
10,610,454
167,050
96,538
10,680,966
Total
70,515,154
2,283,884
857,011
249,181 249,181 73,364,751
Construction in progress 120,742 79,348 117,921 - - 82,169
Total $ 70,678,583 $ 2,363,232 $ 974,932 $ 249,181 $ 249,181 $ 73,446,920
106
INTERNAL CONTROL AND COMPLIANCE
107
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108
N
Rehmann Robson
Re h m a n n
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
March 13, 2015
Honorable Mayor and
Members of City Council
City of Sebastian
Sebastian, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States, the financial statements of the
governmental activities, the business -type activities, each major fund, and the aggregate remaining
fund information of the City of Sebastian, Florida (the "City"), as of and for the year ended
September 30, 2014, and the related notes to the financial statements, which collectively comprise
the City's basic financial statements, and have issued our report thereon dated March 13, 2015.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal
control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City's
internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal
control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies,
in internal control that is less severe than a material weakness, yet important enough to merit
attention by those charged with governance.
109
Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies
may exist that were not identified. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion
on compliance with those provisions was not an objective of our audit, and accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance or other
matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
City's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
II /
110
Rehmann
INDEPENDENT AUDITORS'
MANAGEMENT LETTER
March 13, 2015
Honorable Mayor and
Members of City Council
City of Sebastian
Sebastian, Florida
Report on the Financial Statements
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the financial statements of the City of Sebastian, Florida as of and for the fiscal year
ended September 30, 2014 and have issued our report thereon dated March 13, 2015.
Auditor's Responsibility
We conducted our audit in accordance with United States generally accepted auditing standards; the
standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States and Chapter 10.550, Rules of the Auditor General.
Other Reports and Schedule
We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and
Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance
with Government Auditing Standards; and Independent Accountant's Report on an examination
conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance
requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those
reports and schedule, which are dated March 13, 2015, should be considered in conjunction with this
management letter.
Prior Audit Findings
Section 10.554(1)(i)l ., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address findings and recommendations made in the preceding
annual financial audit report. Corrective actions have been taken to address findings and
recommendations made in the preceding annual financial report.
111
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in
this management letter, unless disclosed in the notes to the financial statements. The legal authority
for the City of Sebastian, Florida is disclosed in the notes to the financial statements. The City of
Sebastian, Florida's component unit, the Police Officer's Pension Plan, was established under Section
58-46 through 58-54 Code of Ordinances in October 1989.
Financial Condition
Section 10.554(1)(i)5.a., Rules of the Auditor General, requires that we report the results of our
determination as to whether or not the City of Sebastian, Florida has met one or more of the conditions
described in Section 218.503(1), Florida Statutes, and identification of the specified condition(s) met.
In connection with our audit, we determined that the City of Sebastian, Florida did not meet any of the
conditions described in Section 218.503(11. Florida Statutes.
Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial
condition assessment procedures. It is management's responsibility to monitor the City of Sebastian,
Florida's financial condition, and our financial condition assessment was based in part on
representations made by management and the review of financial information provided by same.
Annual Financial Report
Section 10.554(1)(i)5.b., Rules of the Auditor General, requires that we report the results of our
determination as to whether the annual financial report for the City of Sebastian, Florida for the fiscal
year ended September 30, 2014, filed with the Florida Department of Financial Services pursuant to
Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the
fiscal year ended September 30, 2014. In connection with our audit, we determined that these two
reports were in agreement.
As required by the Rules of the Auditor General (Section 10.554(1)(i)2), the scope of our audit
included a review of the provisions of Section 218.415, Florida Statutes, regarding the investment of
public funds. In connection with our audit, we determined that the City of Sebastian, Florida complied
with Section 218.415, Florida Statutes.
Special District Component Units
Section 10.554(1)(i)5.d. Rules of the Auditor General, requires that we determine whether or not a
special district that is a component unit of a county, municipality, or special district, provided the
financial information necessary for proper reporting of the component unit, within the audited
financial statements of the county, municipality, or special district in accordance with Section
218.39(3)(b), Florida Statutes. In connection with our audit, we determined that all special district
component units provided the necessary information for proper reporting in accordance with Section
218.39(3)(b), Florida Statutes.
112
Other Matters
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management
letter any recommendations to improve financial management. In connection with our audit, we did
not have any such recommendations.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with
provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have
occurred, that have an effect on the financial statements that is less than material but which warrants
the attention of those charged with governance. In connection with our audit, we did not have any
such findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and Florida House of Representatives, the Florida Auditor
General, Federal and other granting agencies, the City Council, and applicable management, and is not
intended to be and should not be used by anyone other than these specified parties.
7��444-rJ4- L LC
113
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114
R.,e h m a n n
INDEPENDENT ACCOUNTANTS' REPORT
March 13, 2015
Honorable Mayor and
Members of City Council
City of Sebastian
Sebastian, Florida
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have examined the compliance of the City of Sebastian, Florida (the "City") with Sections 218.415,
28.35 and 28.36, Florida Statutes, during the year ended September 30, 2014. Management is
responsible for compliance with those requirements. Our responsibility is to express an opinion on the
Citv's compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants and, accordingly, include examining, on a test basis, evidence
about the City's compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances. We believe that our examination provides a reasonable
basis for our opinion. Our examination does not provide a legal determination on the City's compliance
with specified requirements.
In our opinion, the City complied, in all material respects, with the aforementioned requirements for
the year ended September 30, 2014.
Our management letter is intended solely for the information and use of management, the City Council
and the Florida Auditor General, and is not intended to be and should not be used by anyone other
than these specified parties.
LLC
Sebastian, Florida
March 13, 2015
115
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116
STATISTICAL SECTION
117
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118
CITY OF SEBASTIAN, FLORIDA
M Statistical Section Table of Contents
This part of the City's Comprehensive Annual Financial Report presents detailed information to assist the
user in understanding what the financial statements, note disclosures and required supplementary
information say about the overall economic condition of the City of Sebastian, Florida.
Page
Financial Trends These schedules contain trend information to help the reader
understand and evaluate how the City's financial condition,
performance and well-being have changed over time. 120
Revenue Capacity These schedules contain information to help the reader assess
the City's ability to generate its most significant local revenue
source, the property tax. 132
Debt Capacity These schedules present information to help the reader assess
the affordability of the City's current levels of outstanding debt
and its ability to issue additional debt in the future. 138
Demographic and These schedules present various demographic and economic
Economic Information indicators to help the reader understand the environment within
which the City operates and how they affect the City's financial
activities. 146
Operating Information These schedules contain information about the City's operations
and resources to help the reader understand how the information
in the City's financial report relates to the services the City
provides and the activities it performs. 150
Sources: Unless otherwise noted, the information in these schedules is derived from the Comprehensive
Annual Financial Report for the relevant year. The City implemented GASB Statement No. 34 in 2001;
schedules presenting government -wide information include data beginning in that year.
119
CITY OF SEBASTIAN, FLORIDA
Net Position by Component
Last Ten Fiscal Years
Governmental activities
Net investment in capital assets
Restricted
Unrestricted
Total governmental activities net position
Business -type activities
Net investment in capital assets
Restricted
Unrestricted
Total business -type activities net position
Primary Government
Net investment in capital assets
Restricted
Unrestricted
Total primary government net position
Fiscal Year
2014 2013 2012 2011 2010
$ 33,643,526 $ 32,038,749 $ 31,500,173 $ 31,541,953 $ 28,938,587
5,115,627 5,839,440 6,192,777 5,668,155 8,757,043
4,897,400 4,577,440 3,607,228 4,052,751 3,889,011
$ 43,656,553 $ 42,455,629 $ 41,300,178 $ 41,262,859 $ 41,584,641
$ 10,367,350 $ 10,846,501 $ 11,181,823 $ 11,850,561 $ 11,389,704
(30,662) (306,497) (490,298) (644,620) (342,340)
$ 10,336,688 $ 10,540,004 $ 10,691,525 $ 11,205,941 $ 11,047,364
$ 44,010,876 $ 42,885,250 $ 42,681,996 $ 43,392,514 $ 40,328,291
5,115,627 5,839,440 6,192,777 5,668,155 8,757,043
4,866,738 4,270,943 3,116,930 3,408,131 3,546,671
$ 53,993,241 $ 52,995,633 $ 51,991,703 $ 52,468,800 $ 52,632,005
The large increases in unrestricted net position from 2004 to 2005 are mainly due to increase in State revenue sharing, sales and use
taxes, and tax revenues.
z The large increases in unrestricted net position from 2005 to 2006 are mainly due to increase in tax revenues, franchise fees, and
interest earnings.
120
Table I - Unaudited
Fiscal Year
2009 2008 2007 2006 2005
$ 26,744,896 $ 24,133,550 $ 21,469,456 $ 17,579,683 $ 17,103,399
8,197,018 9,215,801 9,419,129 5,068,583 5,395,879
4,502,440 5,035,184 5,249,998 11,293,877 2 9,081,345
$ 39,444,354 $ 38,384,535 $ 36,138,583 $ 33,942,143 $ 31,580,623
$ 10,725,676
$ 9,111,251
$ 8,895,501
$ 8,798,612
$ 7,459,945
98,320
570,149
570,890
560,581
574,105
86,517
753,076
1,303,886
1,896,539
738,519
$ 10,910,513
$ 10,434,476
$ 10,770,277
$ 11,255,732
$ 8,772,569
$ 37,470,572
$ 33,244,801
$ 30,364,957
$ 26,378,295
$ 24,563,344
8,295,338
9,785,950
9,990,019
5,629,164
5,969,984
4,588,957
5,788,260
6,553,884
13,190,416
9,819,864
$ 50,354,867
$ 48,819,011
$ 46,908,860
$ 45,197,875
$ 40,353,192
121
CITY OF SEBASTIAN, FLORIDA
Changes in Net Position
Last Ten Fiscal Years
Expenses
Governmental activities:
General government
Public safety
Physical environment
Transportation
Economic environment
Culture and recreation
Interest on debt
Total governmental activities expenses
Business -type activities:
Golf Course
Airport
Building'
Total business -type activities expenses
Total primary government expenses
Program Revenue
Governmental activities:
Charges for services:
General government
Public safety
Physical environment
Culture and recreation
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenue
Fiscal Year
2014 2013 2012 2011 2010
$ 2,923,398 S 2,784,485 $ 2,640,677 $ 2,766,575 $ 3,309,381
4,908,374
4,928,203
5,025,274
5,546,632
5,720,933
2,310,539
2,039,380
2,007,902
1,558,974
1,947,605
1,828,569
1,845,429
1,800,432
2,263,367
1,863,551
247,891
155,214
170,960
208,518
135,885
1,229,369
1,232,345
1,239,512
1,227,198
1,240,383
235,071
368,432
562,496
546,103
566,410
13,683,211
13,353,488
13,447,253
14,117,367
14,784,148
1,406,770
1,377,039
1,394,731
1,355,266
1,388,158
1,031,464
1,146,905
1,166,588
1,188,788
1,067,525
465,717
417,887
397,295
470,406
496,800
2,903,951
2,941,831
2,958,614
3,014,460
2,952,483
$ 16,587,162 $ 16,295,319 $ 16,405,867 $ 17,131,827 $ 17,736,631
$ 407,068
5 314,158
$ 214,488
$ 197,945 $
203,915
76,132
67,297
66,474
92,350
118,368
1,073,015
1,101,864
876,693
868,059
881,338
67,371
70,982
66,954
61,353
62,046
186,295
332,627
187,333
196,534
210,050
739,785
770,123
791,265
838,242
3,178,618
2,549,666
2,657,051
2,203,207
2,254,483
4,654,335
Business -type activities:
Charges for services:
Golf Course
1,277,660
1,302,441
1,394,844
1,382,421
1,335,647
Airport
470,703
481,759
491,367
485,229
468,698
Building '
700,751
706,964
419,705
401,021
356,264
Operating grants and contributions
-
-
-
-
-
Capitalgrants and contributions
235,215
230,868
150,083
900,340
904,853
Total business -type activities program revenue
2,684,329
2,722,032
2,455,999
3,169,011
3,065,462
Total primary government program revenue
$ 5,233,995
$ 5,379,083
$ 4,659,206
$ 5,423,494
$ 7,719,797
Net(expense)revenue
Governmental activities
$ (11,133,545)
$ (10,696,437)
$ (11,244,046)
$ (11,862,884)
$ (10,129,813)
Business -type activities
(219,622)
(219,799)
(502,615)
154,551
112,979
Total primary government net
(expense) revenue
$ (11,353,167)
$ (10,916,236)
$ (11,746,661)
$ (11,708,333)
$ (10,016,834)
122
Table II - Unaudited
Fiscal Year
2009 2008 2007 2006 2005
$ 3,169,851
$ 3,375,178
$ 3,083,609
$ 3,129,723
$ 3,262,276
5,420,585
5,226,512
5,377,107
4,191,295
4,816,614
1,347,771
1,805,755
1,695,066
2,193,589
1,283,889
3,437,724
2,111,360
2,276,497
2,173,071
4,034,900
167,470
113,101
605,510
98,661
32,128
1,073,249
1,420,734
1,237,398
1,208,288
1,260,395
730,100
634,891
667,950
706,303
740,372
15,346,750
14,687,531
14,943,137
13,700,930
15,430,574
1,477,299
1,488,472
1,533,900
1,558,338 1,464,532
1,079,869
1,099,653
1,046,994
801,967 519,235
533,641
605,422
905,452
936,793 -
3,090,809
3,193,547
3,486,346
3,297,098 1,983,767
$ 18,437,559 $ 17,881,078 $ 18,429,483 $ 16,998,028 $ 17,4142341
$ 220,073 $
353,836
$ 422,897 $
533,482
$ 370,609
95,606
85,009
92,853
140,545
1,356,385
908,829
903,285
891,021
887,819
828,907
66,540
83,378
85,945
72,472
56,199
228,002
786,016
192,676
407,898
2,802,511
1,865,174
835,607
1,014,481
1,301,438
1,781,954
3,384,224
3,047,131
2,699,873
3,343,654
7,196,565
1,406,956
1,438,233
1,652,288
1,580,407
1,381,817
438,485
523,989
344,813
375,768
434,818
358,947
347,189
408,875
1,220,823
-
-
-
-
6,998
13,582
1,356,914
494,098
500,428
1,056,562
2,289,986
3,561,302
2,803,509
2,906,404
4,240,558
4,120,203
$ 6,945,526 $ 5,850,640 $ 5,606,277 $ 7,584,212 $ 11,316,768
$ (11,962,526) $ (11,640,400) $ (12,243,264) $ (10,357,276) $ (8,234,009)
470,493 (390,038) (579,942) 943,460 2,136,436
$ (11,492,033) $ (12,030,438) $ (12,823,206) $ (9,413,816) $ (6,097,573)
continued...
123
CITY OF SEBASTIAN, FLORIDA
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year
2014 2013 2012 2011 2010
General revenue and other changes in net position
6,563 4,026
15,658
- 274
4,125 -
1,194
Governmental Activities:
(22,489) -
7,020
16,306 42,399
(11,801) 4,026
23,872
Property taxes, levied for general purposes $
3,248,113
$ 3,221,304
$ 3,063,495
$ 3,453,778
$ 4,164,128
Sales and use taxes
5,320,051
5,123,046
4,852,413
4,751,021
4,765,200
Franchise fees
1,190,233
1,118,886
1,124,568
1,184,686
1,228,692
State shared revenues not restricted
to specific programs
2,208,700
2,063,450
1,934,733
1,868,555
1,825,215
Investment earnings
43,293
74,650
82,129
111,943
144,432
Miscellaneous
338,901
315,296
201,538
171,119
149,453
Transfers
(14,822)
(37,734)
22,489
-
(7,020)
Total governmental activities
12,334,469
11,878,898
11,281,365
11,541,102
12,270,100
Business -type activities:
Investment earnings
Miscellaneous
Transfers
Total business -type activities
Total primary government general revenue
Change in net position
Governmental activities
Business -type activities
1,484 4,391
6,563 4,026
15,658
- 274
4,125 -
1,194
14,822 37,734
(22,489) -
7,020
16,306 42,399
(11,801) 4,026
23,872
$ 12,350,775 $ 11,921,297 $ 11,269,564 $ 11,545,128 $ 12,293,972
$ 1,200,924 $ 1,182,461 $ 37,319 $ (321,782) $ 2,140,287
(203,316) (177,400) (514,416) 158,577 136,851
Total primary government change in net position $ 997,608 $ 1,005,061 $ (477,097) $ (163,205) $ 2,277,138
The building operation was reclassified from being part of the General Fund operation to an enterprise fund operation at the
beginning of fiscal year 2006.
2 The large increases in transfers from 2005 to 2006 are mainly due to the one time transfer of building reserve to building fund due to
the reclassification of fund type for the building operation.
s The reduction in the change in net position for governmental funds can be attributed to less income being received resulting in a
smaller spread between revenues and expenditures, thereby using net position for revenue shortfalls.
124
Fiscal Year
2009 2008 2007 2006 2005
$ 4,801,924 $ 5,149,047 $ 5,089,841 $ 4,645,050 $ 4,017,555
4,670,106 4,753,718 4,776,691 4,907,906 4,718,691
1,327,253 1,199,762 1,106,698 1,253,749 886,390
1,821,347
1,989,606
2,083,523
2,242,292
2,138,020
261,203
634,919
1,147,931
827,224
398,518
140,512
159,300
192,300
256,780
118,760
-
-
42,720
(1,414,205)
(106,500)
13,022,345
13,886,352
14,439,704
12,718,796
12,171,434
5,544 54,237 137,207 125,498 45,709
- - - - 300
- - (42,720) 1,414,205 Z 106,500
5,544 54,237 94,487 1,539,703 152,509
$ 13,027,889 $ 13,940,589 $ 14,534,191 $ 14,258,499 $ 12,323,943
$ 1,059,819 $ 2,245,952 $ 2,196,440 $ 2,361,520 $ 3,937,425
476,037 (335,801) (485,455) 2,483,163 2,288,945
$ 1,535,856 $ 1,910,151 $ 1,710,985 $ 4,844,683 $ 6,226,370
concluded
125
CITY OF SEBASTIAN, FLORIDA
Fund Balances, Governmental Funds
Last Ten Fiscal Years
Governmental funds
General Fund:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total General Fund
All other governmental funds:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total all other governmental funds
Total governmental funds
-9101"iscal, Year
2014 2013 ' 2012 2011 2010
$ 369,329
$ 368,564
$ 370,450 $
346,995 $
352,248
7,969
28,632
-
-
-
-
-
2,861,708
2,949,139
3,063,585
7,129
7,020
35,707
21,911
31,656
5,348,905
5,065,242
1,734,307
1,784,413 Z
2,164,910
5,733,332
5,469,458
5,002,172
5,102,458
5,612,399
1,390,073 1,323,838 1,289,693 1,494,779 859,463
3,756,950 4,647,950 4,371,826 4,748,376 7,897,580
625,007 589,364 719,686 - -
(64,875) - - - -
5,707,155 6,561,152 6,381,205 6,243,155 8,757,043
$ 11,440,487 $ 12,030,610 $ 11,383,377 $ 11,345,613 $ 14,369,442
' The significant reduction in restricted fund balance reported in all other governmental funds from 2008 to 2009 is a result of the
significant completion of the Indian River Drive/Main Street and Pedestrian Bridge projects, along with the significant construction
completed on the Collier Canal Retrofit project.
z Reduction in unassigned fund balance to fund operations
126
Table III - Unaudited
Fiscal Year
2009 2008 2007 2006 2005
$ 357,696
$ 381,528
$ 368,609
$ 106,192
$ 160,964
3,083,463
3,502,560
3,742,617
4,844,674
5,546,959
1,983
33,453
19,055
9,856
3,761
2,324,972
2,390,641
2,260,507
1,518,350
391,783
5,768,114
6,308,182
6,390,788
6,479,072
6,103,467
830,029
771,927
694,506
656,160
578,367
8,557,389 '
12,446,260
12,926,545
14,783,299
13,392,801
9,387,418
13, 218,187
13, 621, 051
15,439, 459
13, 971,168
$ 15,155,532 $ 19,526,369 $ 20,011,839 $ 21,918,531 $ 20,074,635
127
CITY OF SEBASTIAN, FLORIDA
Changes in Fund Balances For Governmental Funds
For the Last Ten Fiscal Years
Revenues
Taxes
Franchise fees
Charges for services
Licenses, fees and permits
Fines and penalties
Intergovernmental
Impact fees
Special assessments
Investment earnings
Otherrevenues
Total revenues
Expenditures
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Culture and recreation
Debt service:
Principal
Interest
Capital outlay
Total expenditures
Revenues over (under) expenditures
Other Financing Sources (Uses)
Issuance of long-term debt
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Debt service as a percentage of
noncapital expenditures
Fiscal Year
2014 2013 2012 2011 2010
$ 9,123,879 $ 8,894,880 $ 8,465,990 $ 8,762,729 $ 9,525,074
1,190,233
1,118,886
1,124,568
1,184,686
1,228,692
138,564
45,500
22,431
1,121,967
1,154,739
2,373,695
2,411,395
2,088,038
23,646
33,182
168,350
169,000
58,500
81,534
90,948
1,431,101
1,462,522
1,158,075
2,249,447
4,572,550
54,140
60,190
57,575
42,250
26,000
43,293
78,411
86,516
-
-
36,801
22,406
216,091
103,795
228,216
338,901
315,296
201,888
224,823
169,039
14,898,957 14,578,486 13,479,672 13,794,877 17,028,440
2,575,605
2,447,893
2,410,345
2,539,211
2,699,289
4,623,060
4,425,000
4,523,802
5,030,708
4,938,147
1,110,788
1,075,162
1,042,349
1,166,309
1,210,823
1,165,004
1,158,945
1,208,411
1,217,521
1,405,310
144,612
122,730
138,531
188,918
129,352
888,795
847,781
876,502
903,836
977,780
2,306,000 1,307,000 3,321,000 1,203,000 2,142,190
413,995 393,447 472,399 521,152 577,593
2,246,399 2,115,561 1,767,058 4,048,051 6,189,026
15,474,258 13,893,519 15,760,397 16,818,706 20,269,510
(575,301) 684,967 (2,280,725) (3,023,829) (3,241,070)
- - 2,296,000
- 2,462,000
3,903,204 3,598,949 3,694,765
5,376,658 4,486,626
(3,918,026) (3,636,683) (3,672,276)
(5,376,658) (4,493,646)
(14,822) (37,734) 2,318,489
2,454,980
$ (590,123) $ 647,233 $ 37,764 $ (3,023,829) $ (786,090)
19.8% 14.0% 27.1% 13.5% 19.3%
128
Table IV - Unaudited
Fiscal Year
2009 2008 2007 2006 2005
$ 10,065,806 $ 10,504,155 $ 10,554,617 $ 10,269,451 $ 9,483,664
1,327,253
1,199,762
1,106,698
1,253,749
886,390
1,186,161
1,209,617
1,271,102
517,605
936,530
29,151
163,471
186,875
244,370
1,587,675
88,938
65,246
71,314
77,776
95,699
3,270,854
2,674,761
2,463,628
2,852,293
5,561,695
13,975
32,825
56,875
337,675
385,775
3,849
-
-
819,286
11,023
250,914
647,312
1,062,043
827,224
398,518
176,430
461,553
244,629
294,695
144,057
16,413,331 16,958,702 17,017,781 17,494,124 19,491,026
2,976,896
3,087,789
2,999,652
2,494,863
2,974,736
4,926,714
4,677,618
4,700,447
3,813,908
4,349,639
1,448,067
1,368,593
1,301,719
1,850,642
910,794
1,696,254
1,545,045
1,733,697
1,672,983
3,616,076
167,470
113,101
80,279
98,661
32,128
1,148,408
1,079,379
975,087
926,846
995,406
1,218,995 1,326,182 1,284,418 1,248,378 1,218,023
706,093 611,554 643,305 678,682 711,736
6,495,271 3,634,910 5,242,590 1,451,060 3,975,015
20,784,168 17,444,171 18,961,194 14,236,023 18,783,553
(4,370,837) (485,469) (1,943,413) 3,258,101 707,473
5,196,376 5,679,896 5,158,296 3,785,981 3,745,265
(5,196,376) (5,679,896) (5,115,576) (5,200,186) (3,851,765)
42,720 (1,414,205) (106,500)
$ (4,370,837) $ (485,469) $ (1,900,693) $ 1,843,896 $ 600,973
13.5% 14.0% 14.1% 15.1% 13.0%
129
CITY OF SEBASTIAN, FLORIDA
Program Revenues by Function/Program
Last Ten Fiscal Years
Fiscal Year
2014 2013 2012 2011 2010
Program Revenues
Governmental activities:
General government
$ 413,727 $
471,299 $
230,550 $
243,039
$ 209,144
Public safety
2467010
233,309
228,392
234,437
304,630
Physical environment
1,073,015
1,101,864
876,693
930,018
881,338
Transportation
565,692
560,713
560,055
743,383
614,305
Economic environment
15,501
-
13,998
-
2,556,872
Culture and recreation
235,721
289,866
293,519
103,606
88,046
Total govern mental activities
27549,666
2,657,051
2,203,207
2,254,483
4,654,335
Business -type activities:
Charges for services:
Golf Course
1,277,660
1,302,441
1,394,892
1,382,421
1,3357647
Airport
705,918
712,627
641,455
1,385,569
1,373,551
Building '
7007751
706,964
4267215
401,021
356,264
Total business -type activities
2,6847329
2,722,032
2,462,562
3,169,011
3,065,462
Total primary government
$ 5,233,995 $
5,379,083 $
4,665,769 $
5,423,494
$ 7,7197797
The building operation was reclassified from being part of the General Fund operation to an enterprise fund operation at the beginning
of fiscal year 2006.
2 The significant increase in business -type activities for the airport from 2008 to 2009 is mainly due to capital grant funding from the
Florida Department of Transportation and the Federal Aviation Administration.
130
Table V - Unaudited
Fiscal Year
2009 2008 2007 2006 2005
$ 226,003 $
377,305 $
450,267 $
579,591 $
587,527
299,119
515,997
249,756
306,702
1,537,557
1,408,829
1,256,277
891,021
890,092
898,821
612,335
619,949
721,103
900,365
3,392,883
6,000
-
-
30,059
-
831,938
277,603
387,726
636,845
779,777
3,384,224
3,047,131
2,699,873
3,343,654
7,196,565
1,406,955
1,438,233
1,652,288
1,587,405
1,395,399
1,795,399 2
1,018,087
845,241
1,432,330
2,724,804
358,948
347,189
408,875
1,220,823
-
3,561,302
2,803,509
2,906,404
4,240,558
4,120,203
$ 6,945,526 $ 5,850,640 $ 5,606,277 $ 7,584,212 $ 11,316,768
131
CITY OF SEBASTIAN, FLORIDA
Tax Revenue by Source
Governmental Funds
For the Last Ten Fiscal Years
(Rate per $1,000 of assessed value)
Table VI - Unaudited
132
Fiscal Year
Ended
Property
Public
Sales
Motor
Millage
Tax Year
September 30
Taxes
Utility
Tax
Fuel
Total
Rate
2004
2005
$ 4,017,555
$ 2,005,124
$ 2,713,567
$ 747,418
$ 9,483,664
4.5904
2005
2006
4,645,050
2,183,164
2,724,742
716,495
10,269,451
3.9325
2006
2007
5,089,841
2,216,381
2,560,310
688,085
10,554,617
3.0519
2007
2008
5,149,047
2,250,781
2,502,937
601,390
10,504,155
2.9917
2008
2009
4,801,924
2,341,458
2,328,648
593,776
10,065,806
3.3456
2009
2010
4,164,128
2,437,050
2,328,150
595,746
9,525,074
3.3456
2010
2011
3,453,778
2,392,345
2,358,676
557,930
8,762,729
3.3041
2011
2012
3,063,495
2,387,553
2,464,240
550,702
8,465,990
3.3041
2012
2013
3,221,304
2,534,434
2,587,903
551,239
8,894,880
3.7166
2013
2014
3,248,113
2,581,427
2,738,405
555,934
9,123,879
3.7166
132
CITY OF SEBASTIAN, FLORIDA
Direct and Overlapping Property Tax Rates
For the Last Ten Fiscal Years
(Rate per $1,000 of taxable value)
City Direct Rates
Tax
Fiscal
Basic
Debt
Total
Total
Year
Year
Rate
Service
Direct
County'
2004
2005
4.5904
0.0000
4.5904
7.3505
2005
2006
3.9325
0.0000
3.9325
5.6904
2006
2007
3.0519
0.0000
3.0519
5.3661
2007
2008
2.9917
0.0000
2.9917
5.1485
2008
2009
3.3456
0.0000
3.3456
6.2861
2009
2010
3.3456
0.0000
3.3456
6.2693
2010
2011
3.3041
0.0000
3.3041
6.2860
2011
2012
3.3041
0.0000
3.3041
6.9590
2012
2013
3.7166
0.0000
3.7166
6.2572
2013
2014
3.7166
0.0000
3.7166
5.6207
Table VII - Unaudited
Iq MEMEq
Overlapping Rates
County School Board
Basic
Debt
Rate
Service
8.0190
0.4800
7.8800
0.3600
7.1630
0.2800
7.2680
0.2700
6.7600
0.2800
7.2960
0.3000
7.9200
0.3000
7.8940
0.3500
7.9230
0.3900
8.1160
-
Table VII - Unaudited
Iq MEMEq
Total
Other 2
8.4990
1.43029
8.2400
1.60850
7.4430
1.47940
7.5380
1.38160
7.0400
1.11204
7.5960
1.33570
8.2200
1.35050
8.2440
1.35460
8.3130
1.35460
8.1160
1.71280
' Tax rates are uniformly applied to taxable values based on a single millage rate determined by each taxing entity. The millage rate is expressed as $1.00
per $1,000 of the taxable value.
2 Millage includes General Fund, MSTUs, Emergency Services District and Land Bonds
All Special Taxing Districts
Source: Indian River County Property Appraiser's Office
133
CITY OF SEBASTIAN, FLORIDA
Actual Value of Taxable Property
For the Last Ten Fiscal Years
Real Property
Personal Property
Tax
Fiscal
Assessed
Estimated
Assessed
Estimated
Year
Year
Value
Actual Value
Value
Actual Value
2004
2005
$ 1,157,275,164
$ 1,446,593,955 $
51,330,277
$ 51,330,277
2005
2006
1,526,923,406
1,908,654,258
51,827,624
51,827,624
2006
2007
2,124,615,672
2,655,769,590
55,913,696
55,913,696
2007
2008
2,054,408,055
2,568,010,069
64,899,942
64,899,942
2008
2009
1,933,934,630
2,417,418,288
62,476,508
62,476,508
2009
2010
1,650,311,449
2,062,889,311
56,920,223
56,920,223
2010
2011
1,392,267,434
1,740,334,293
55,234,086
55,234,086
2011
2012
1,273,059,710
1,591,324,639
48,922,492
48,922,492
2012
2013
1,210,328,690
1,512,910,863
47,410,545
47,410,545
2013
2014
1,267,035,970
1,583,794,963
47,412,565
47,412,565
Source: Indian River County Property Appraiser
80%
70%
60%
50%
40%
30%
20%
10%
0%
Ratio of Taxable to Actual Value
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Fiscal Year
134
Table VIII - Unaudited
M
7—
Less: Total TotalRatio of
Tax -Exempt Taxable Estimated Taxable to
Property Value Actual Value Actual Value
$ 228,262,825 $ 980,342,616 $ 1,497,924,232 65.4%
271,466,364 1,307,284,666 1,960,481,882 66.7%
322,318,753 1,858,210,615 2,711,683,286 68.5%
334,302,515 1,785,005,482 2,632,910,011 67.8%
676,808,522 1,319,602,616 2,479,894,796 53.2%
558,090,532 1,149,141,140 2,119,809,534 54.2%
460,752,786 986,748,734 1,795,568,379 55.0%
444,524,142 877,458,060 1,640,247,130 53.5%
437,040,114 820,699,121 1,560,321,408 52.6%
435,071,311 885,009,868 1,631,207,528 54.3%
135
CITY OF SEBASTIAN, FLORIDA
Principal Property Tax Payers
Current Year and Nine Years Ago
Taxpayer
Florida Power Et Light (Utility/ Electric)
Wal-Mart Stores, Inc. (Retail)
Park Place Community, LLC (Rental/Retail)
Comcast of Florida, Inc. (Communications)
BW US 1, Inc. (Commercial)
CR512 Shopping Center
Bellsouth Communications (Utility/Telephone)
Hartwell Groves, Inc. (Commercial)
Pelican Isles (Housing)
Sebastian Inlet Marina Et Trading Co, Inc.
(Restaurant/ Hotel)
Maronda Homes, Inc. (Housing)
Adams Homes of Northwest FL (Housing)
Fisher, Henry Anthony (Commercial)
Sandy Pines LTD (Rental)
Mercedes Homes, Inc. (Housing)
Total Taxable Value
Source: Indian River County Property Appraiser
ITaxable
Assessed
Value
Table IX - Unaudited
2014 Fiscal Year
2005 Fiscal Year
Percentage
Percentage
of Total City
of Total City
Taxable
Taxable Taxable
I ORank
Assessed
Assessed Assessed
Rank Value
Value Value
92.68%
Concentration of 2014 Taxpayers
7.32%
■Top Ten Taxpayers ®All Other Taxpayers
136
$ 15,782,005
1
1.78 %
$ 15,407,800
1
1.98 %
8,468,400
2
0.96
12,001,110
2
1.54
6,786,642
3
0.77
-
-
6,501,387
4
0.73
3,008,500
10
0.39
5,971,370
5
0.67
5,712,340
5
0.73
5,600,600
6
0.63
-
-
4,518,986
7
0.51
8,086,380
4
1.04
3,996,530
8
0.45
-
-
3,934,710
9
0.44
-
-
3,359,400
10
0.38
31512,390
0.45
-
10,549,810
3
1.36
5,558,050
6
0.71
4,987,844
7
0.64
----
4,728,268
8
0.61
-
----
4,245,330
9
0.55
$ 64,920,030
7.32 %
$ 77,797,822
10.00 %
$ 885,009,868
$777,352,915
92.68%
Concentration of 2014 Taxpayers
7.32%
■Top Ten Taxpayers ®All Other Taxpayers
136
CITY OF SEBASTIAN, FLORIDA Table X - Unaudited
Property Tax Levies and Collections
For the Last Ten Fiscal Years
Collected within the
L— Fiscal Year of the Levy Total Collections to Date
Source: Indian River County Property Appraiser and Department of Revenue, Certification of Final Taxable Value, DR -422.
20
18
16
14
12
10
8
6
4
2
Total Tax Collections
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Fiscal Year
137
Taxes Levied
Delinquent and
Tax
Fiscal
for the
�
Percentage
Penalty Tax
Percentage
Year
Year
Fiscal Year
Amount
of Levy
Collections
Amount
of Levy
2004
2005
$ 3,888,488
$ 3,723,912
95.77
$ 1,712 $
3,725,624
95.81
2005
2006
4,426,281
4,300,217
97.15
39
4,300,256
97.15
2006
2007
4,747,938
4,537,100
95.56
9,429
4,546,529
95.76
2007
2008
4,919,994
4,634,338
94.19
2,906
4,637,244
94.25
2008
2009
4,441,535
4,225,106
95.13
1,694
4,226,800
95.17
2009
2010
3,844,658
3,716,797
96.67
17,723
3,734,520
97.14
2010
2011
3,260,316
3,144,864
96.46
11,294
3,156,158
96.81
2011
2012
2,899,209
2,799,146
96.55
9,279
2,808,425
96.87
2012
2013
3,050,099
2,947,248
96.63
7,733
2,954,981
96.88
2013
2014
3,074,729
2,975,299
96.77
754
2,976,053
96.79
Source: Indian River County Property Appraiser and Department of Revenue, Certification of Final Taxable Value, DR -422.
20
18
16
14
12
10
8
6
4
2
Total Tax Collections
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Fiscal Year
137
CITY OF SEBASTIAN, FLORIDA
Ratios of Outstanding Debt By Type
For the Last Ten Fiscal Years
Table XI - Unaudited
80.00
60.00
c
0
40.00
20.00
Primary Government Debt
2,005 2,006 2,007 2,008 2,009 2,010 2,011 2,012 2,013 2,014
Fiscal Year
138
Business -Type
Activities
Roadway
Infrastructure
Heavy
Stormwater
Golf Course
Total
Percentage
Fiscal
Improvement
Sales Tax
Equipment
Utility Revenue
Revenue
Primary
of Personal
Per
Year
Notes
Bonds/Notes
Lease
Bonds/Notes
Bonds
Government
Income
Capita
1
1
2
2005
$ 2,004,718
$ 10,490,000
$ 422,455
$ 5,290,000
$ 1,395,000
$ 19,602,173
31%
978
2006
1,790,544
9,825,000
288,251
5,055,000
1,140,000
18,098,795
25%
835
2007
1,566,839
9,1457000
147,538
4,815,000
870,000
16,5447377
22%
738
2008
1,333,197
8,445,000
-
4,570,000
590,000
14,938,197
19%
652
2009
1,089,203
77725,000
4,315,000
300,000
137429,203
21%
591
2010
2,414,000
6,980,000
4,055,000
-
13,449,000
20%
587
2011
2,246,000
6,2157000
3,785,000
12,246,000
17%
558
2012
2,296,000
5,420,000
3,505,000
11,221,000
15%
510
2013
2,099,000
476007000
3,2157000
97914,000
13%
447
2014
1,896,000
2,730,000
2,982,000
7,608,000
(1)
353
1. The Infrastructure Sales Tax
and Stormwater
Utility Revenue Bonds were refunded
in 2014 with
Bank Notes.
2. A bank note
was issued in 2014
for the purchase of golf carts.
80.00
60.00
c
0
40.00
20.00
Primary Government Debt
2,005 2,006 2,007 2,008 2,009 2,010 2,011 2,012 2,013 2,014
Fiscal Year
138
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139
CITY OF SEBASTIAN, FLORIDA
Ratios of General Bonded Debt Outstanding
For the Last Ten Fiscal Years
Table XII - Unaudited
Percentage of
General Bonded Debt Outstanding
Fiscal
Capita
Applicable
Legal
Year
Debt Limit
to Limit
Debt Margin
2005
$ 49,017,131
$ 2,004,718
$ 47,012,413
2006
65,364,233
1,790,544
63,573,689
2007
92,910,531
1,566,840
91,343,691
2008
89,250,574
1,333,197
87,917,377
2009
65,980,131
1,089,203
64,890,928
2010
57,457,057
2,414,000
55,043,057
2011
49,337,437
2,246,000
47,091,437
2012
43,872,903
2,296,000
41,576,903
2013
41,034,956
2,099,000
38,935,956
2014
43,968,861
7,868,527
36,100,334
Table XII - Unaudited
Percentage of
Per
Debt Limit
Capita
4.09%
$ 2,345
2.74%
2,934
1.69%
4,073
1.49%
3,835
1.65%
2,856
4.20%
2,401
4.55%
2,147
5.23%
1,890
5.12%
1,754
17.90%
1,619
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
140
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141
CITY OF SEBASTIAN, FLORIDA
Legal Debt Margin Information
For the Last Ten Fiscal Years
Legal Debt Margin as a Percentage of Debt Limit
Debt limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the
limit as a percentage of debt limit
17.90% 5.12% 5.23% 4.55% 4.20%
Legal Debt Margin Calculation for Fiscal Year 2014
Assessed value
$1,314,448,535
Fiscal Year
(435,071,311)
2014
2013
2012
2011
2010
$ 43,968,861
$ 41,034,956
$ 43,872,903
$ 49,337,437
$ 57,457,057
7,868,527
2,099,000
2,296,000
2,246,000
2,414,000
$ 36,100,334
$ 38,935,956
$ 41,576,903
$ 47,091,437
$ 55,043,057
17.90% 5.12% 5.23% 4.55% 4.20%
Legal Debt Margin Calculation for Fiscal Year 2014
Assessed value
$1,314,448,535
Less: Exempt property
(435,071,311)
879,377,224
Debt limit (5% of assessed value)
43,968,861
Debt applicable to limit:
General obligations
7,868,527
Less: Revenue bonds -
Total net debt applicable to limit 7,868,527
Legal debt margin $ 36,100,334
Direct and Overlapping Governmental Activities Debt - General Obligations Bonds
The City of Sebastian has no overlapping general obligation bonded debt for the year ended September 30, 2014.
142
Fiscal Year
2009 2008 2007 2006 2005
$ 65,980,131 $ 89,250,274 $ 92,910,531 $ 65,364,233 $ 49,017,131
1,089,203 1,333,197 1,566,840 1,790,544 2,004,718
$ 64,890,928 $ 87,917,077 $ 91,343,691 $ 63,573,689 $ 47,012,413
1.65% 1.49% 1.69% 2.74% 4.09%
143
CITY OF SEBASTIAN, FLORIDA
Pledged -Revenue Coverage
For the Last Ten Fiscal Years
continued...
Note: Detail regarding the City's outstanding debt can be found in the notes to the financial statements.
' Total revenues including charges for services, rents and interest.
z Total direct operating expenses excludes depreciation, amortization, annual Airport lease payment and one time hurricane repair cost.
3 Required coverage was 1.25. Final payment was made on September 30, 2010.
4 Total revenues consist of stormwater utility fees and interest.
5 Required coverage is 1.35.
144
Recreational Facilities Improvement and Refunding Revenue Bonds, Series 2001
Debt Service
Less:
Net
Fiscal
Gross
Operating
Available
Year
Revenue'
Expenses2
Revenue
Principal
Interest
Total
Coverage 3
2005
$ 1,395,436
$ 1,023,002
$ 372,434
$ 240,000
$ 71,490 $
311,490
1.20
2006
1,628,015
1,165,411
462,604
250,000
61,690
311,690
1.48
2007
1,701,171
1,218,382
482,789
255,000
51,590
306,590
1.57
2008
1,455,749
1,174,169
281,580
270,000
41,090
311,090
0.91
2009
1,408,535
1,178,144
230,391
570,000
49,860
619,860
0.37
2010
1,341,555
1,129,651
211,904
300,000
21,700
321,700
0.66
2011
-
-
-
-
-
-
-
2012
2013
2014
continued...
Note: Detail regarding the City's outstanding debt can be found in the notes to the financial statements.
' Total revenues including charges for services, rents and interest.
z Total direct operating expenses excludes depreciation, amortization, annual Airport lease payment and one time hurricane repair cost.
3 Required coverage was 1.25. Final payment was made on September 30, 2010.
4 Total revenues consist of stormwater utility fees and interest.
5 Required coverage is 1.35.
144
13
Table XIV - Unaudited
Stormwater Utility Revenue Bonds, Series 2003
Debt Service
Gross
Revenues4
Principal
Interest
Total
Coverage 5
792,886
$ 240,000
$ 206,673
$ 446,673
1.78
908,576
235,000
201,973
436,973
2.08
932,183
240,000
197,273
437,273
2.13
856,568
245,000
191,873
436,873
1.96
814,419
255,000
185,135
440,135
1.85
858,664
260,000
177,485
437,485
1.96
816,415
270,000
169,035
439,035
1.86
810,382
280,000
159,248
439,248
1.84
1,007,221
290,000
148,048
438,048
2.30
145
concluded
CITY OF SEBASTIAN, FLORIDA
Demographic and Economic Statistics
For the Last Ten Calendar Years
Sources:
' Florida Research Et Economic Database (FRED). Information available for Indian River County Only.
z Indian River County School Board
3 Indian River County Property Appraiser
4 Information not yet available.
5 The school population appears to have declined as a result of loss of job opportunities. Our community lost
many construction jobs as a result of the declining economy.
Note: School enrollment consists of Sebastian River High School, Sebastian River Middle School, Liberty Magnet,
Treasure Coast Elementary, Pelican Island Elementary, Sebastian Elementary and Sebastian Charter Junior High
School.
146
Personal
Per
"r
Income
Capita
Median
State
(thousands
Personal
Household
School
Unemployment
Unemployment
Year
opulation
of dollars)'
Income'
Income'
Enrollment Z
Rate'
Rate
2005
20,048
$ 6,373,953
$ 50,276
$ 44,450
5,258
4.8
3.8
2006
21,666
7,320,877
56,383
45,034
5,604
4.9
3.6
2007
22,426
7,552,059
56,852
47,563
5,117
7.0
4.4
2008
22,924
7,976,086
58,528
48,267 5
4,710
9.8
7.1
2009
22,722
6,534,146
47,689
43,685 5
3,751
14.5
11.2
2010
22,922
6,737,286
48,276
47,525
5,167
14.5
11.3
2011
21,929
7,080,348
50,977
42,053
5,228
13.4
10.6
2012
21,995
7,429,653
52,855
42,638
5,208
11.8
8.6
2013
22,188
7,731,263
54,448
44,326
6,739
8.8
6.9
2014
22,296
4
4
4
6,034
6.5
5.6
Sources:
' Florida Research Et Economic Database (FRED). Information available for Indian River County Only.
z Indian River County School Board
3 Indian River County Property Appraiser
4 Information not yet available.
5 The school population appears to have declined as a result of loss of job opportunities. Our community lost
many construction jobs as a result of the declining economy.
Note: School enrollment consists of Sebastian River High School, Sebastian River Middle School, Liberty Magnet,
Treasure Coast Elementary, Pelican Island Elementary, Sebastian Elementary and Sebastian Charter Junior High
School.
146
Table XV - Unaudited
Property
Total
Taxes
Taxable
Per
Property
Capita
Value 3
200.40
980,342,616
214.39
1,307,284,666
226.96
1,858,210,615
224.61
1,785,005,482
211.33
1,319,602,616
181.67
1,149,141,140
157.50
986,748,734
139.28
877,458,060
145.18
820,699,121
145.68
827,296,184
147
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148
CITY OF SEBASTIAN, FLORIDA
Principal Employers
Current Year and Nine Years Ago
Table XVI - Unaudited
Source: Indian River County Community Development Report.
Note: Principal employers information available for Indian River County Only.
149
2014
2005
Percentage of
Percentage of
Total County
Total County
Employer
Employees
Rank
Employment
Employees
Rank
Employment
School District of Indian River County (Government)
2,123
1
3.62 %
2,025
1
3.51
Indian River Medical Center (Healthcare)
1,605
3
2.74
1,450
3
2.51
Indian River County (Government)
1,354
2
2.31
1,375
2
2.38
Publix Supermarkets (Food/Beverage)
1,092
4
1.86
930
5
1.61
Piper Aircraft, Inc. (Manufacturer)
850
5
1.45
950
4
1.65
Wal-Mart (Retail)
701
6
1.20
500
9
0.87
Sebastian River Medical Center (Healthcare)
576
7
0.98
525
8
0.91
John's Island (Residential/ Resort)
550
8
0.94
500
9
0.87
City of Vero Beach (Government)
460
9
0.78
600
7
1.04
Visiting Nurse Association (Healthcare)
401
10
0.68
300
12
0.52
Indian River Estates (Retirement/ Life care)
350
11
0.60
400
10
0.69
Disney Vero Beach (Resort Hotel)
281
12
0.48
400
10
0.69
Grand Harbor Management (Developer)
253
13
0.43
300
12
0.52
CVS Warehouse/ Distribution (Distribution)
276
14
0.47
Sun Ag, Inc. (Agricultural)
225
15
0.38
City of Sebastian (Government)
171
16
0.29
Flight Safety International (Education)
162
17
0.28
Medical Data Systems (Collection Agency)
131
18
0.22
Saint Edward's School (Education)
109
19
0.19
Gracewood Fruit Packing (Agricultural)
330
11
0.57
Hale Indian River Groves (Agricultural)
650
6
1.13
11,670
19.90 %
11,235
19.48
Total Average County Employees
58,645
57,689
Source: Indian River County Community Development Report.
Note: Principal employers information available for Indian River County Only.
149
CITY OF SEBASTIAN, FLORIDA
Full -Time Equivalent City Government Employees By Function
For the Last Ten Fiscal Years
Full-time Equivalent Employees as of September 30
Function 2014 2013 2012 2011 2010
General government
City council
2.5
2.5
2.5
2.5
City manager
2.0
2.0
2.0
2.0
City clerk
5.0
3.0
3.0
3.0
City attorney
-
-
-
-
Administrative
5.5
5.0
5.0
5.0
Finance
-
-
-
-
Management information
2.0
3.0
3.0
4.0
Human resources
-
-
-
-
Facilities maintenance
5.0
4.0
3.0
2.0
Community development
4.0
3.0
3.0
4.0
Public safety
Police
57.0
55.5
55.0
58.0
Building
5.0
5.0
4.0
5.0
Code enforcement
3.0
3.0
3.0
3.0
Transportation
Roads and drainage
10.0
10.0
10.0
12.0
Fleet management
3.5
3.5
3.5
2.5
Airport
1.0
2.0
3.0
3.0
Physical environment
Cemetery
2.0
2.0
1.0
1.0
Engineering
-
-
-
-
Stormwater utility
9.0
9.0
9.0
12.0
Culture and recreation
Parks and recreation
20.0
20.0
20.0
21.0
Golf course
10.0
10.0
10.0
10.5
Total
146.5
142.5
140.0
150.5
Source: City of Sebastian, Florida 2006-2015 Annual Budgets
Method: Using 1.0 for each full-time employee and 0.5 for each part-time and seasonal employee.
150
2.5
2.5
3.0
5.0
3.0
2.0
5.0
58.0
5.0
2.5
12.0
3.5
3.0
2.0
12.0
23.0
10.5
154.5
2009
2.5
2.5
3.0
2.0
5.0
3.0
2.0
2.0
5.0
59.0
5.0
2.5
10.0
3.5
3.0
2.0
7.0
11.0
23.5
9.0
162.5
Table XVII - Unaudited
I
I Full-time Equivalent Employees as of September 30
IF 2008 2007 2006 2005
2.5
2.5
2.5
2.5
2.5
2.0
2.0
5.0
3.0
4.0
4.5
4.0
2.0
2.0
2.0
2.0
5.0
5.0
6.0
5.0
3.0
3.0
3.0
2.0
3.0
3.0
3.0
3.0
2.0
2.0
2.0
2.0
5.0
5.0
4.0
4.0
58.0
57.0
58.0
59.0
6.0
11.0
11.0
9.0
2.5
3.0
3.0
-
10.0
11.5
12.5
12.5
2.5
3.5
3.5
3.0
3.0
3.0
3.5
3.5
2.0
2.0
2.0
2.0
7.0
9.0
8.0
8.0
13.0
13.0
13.0
13.0
23.5
9.0
23.5
12.5
24.5
12.5
23.5
12.5
164.5
177.5
180.5
175.5
151
CITY OF SEBASTIAN, FLORIDA
Operating Indicators By Function
For the Last Ten Fiscal Years
152
2010
- 1
- 5.90
228 216
500 487
5,941 4,083
242 87
51
36
10.2 $
Fiscal Year
Function
2014
2013
2012 201'
General government
66
34
33
Number of annexations approved
280
2
50
Acres of annexed property
-
4.00
-
Purchase orders issued
242
233
201
Public Safety
3,673
Police
Physical arrests
347
440
441
Traffic violations
4,587
4,491
4,319
Parking violations
29
80
167
Building
Construction permits issued
175
170
66
Estimated value of construction (in millions)
$ 40.0 $
35.9
$ 14.7 $
Transportation
Road maintenance (man hours)
200
300
500
Asphalt for road maintenance (tons)
20
30
50
Concrete for road maintenance (yards) `
Physical environment
Cemetery
Cemetery internments
67
65
65
Grave deeds sold
47
38
38
Stormwater
Swales maintained (miles)
280
280
280
Ditches maintained (miles)
50
50
50
Road crossings maintained
68
50
50
Culture and recreation
Program participants
7,571
8,113
9,713
Number of discount cards
653
710
786
Number of golf course memberships
84
86
88
Average daily golf revenue
$ 3,500 $
3,569
$ 3,822 $
Sources: City of Sebastian Police Department, Growth Management, Public Works, Golf Course
and Building Department.
' New commercial and residential only.
Z All road maintenance utilized asphalt, no concrete curbing was installed.
152
2010
- 1
- 5.90
228 216
500 487
5,941 4,083
242 87
51
36
10.2 $
6.6
700
1,264
50
103
54
66
34
33
280
280
50
50
40
40
8,649
11,701
735
844
94
96
3,787 $
3,673
2009
3
26.00
288
543
4,849
50
23
5.1 $
600
328
74
39
280
50
30
13,465
879
95
4,000 $
2008
254
662
4,418
208
55
13.3 $
538
358
68
46
280
50
30
12,910
950
97
3,988 $
Fiscal Year
2007
1
3.87
284
697
7,221
289
104
22.5 $
888
210
69
49
280
50
30
14,177
1,004
108
4,661 $
2006
Table XVIII - Unaudited
1
3.30
293
744
6,291
880
506
88.3 $
512
127
300
76
56
280
50
30
8,004
2,690
119
4,441 $
153
2005
1
25.55
369
786
5,457
303
774
114.7
100
125
79
56
280
50
30
5,504
1,000
85
3,844
CITY OF SEBASTIAN, FLORIDA
Capital Asset Statistics By Function
For the Last Ten Fiscal Years
Sources: City of Sebastian Administrative Services Department and Park and Recreation Division
' This number represents actual unmetered street lights in the City (source: Florida Power Et Light - January billing).
154
Fiscal Year
Function
2014
2013
2012
2011
2010
General Government
Square footage occupied
21,500
21,500
21,500
21,500
21,500
Departmental vehicles
5
6
1
3
3
Public safety
Police stations
1
1
1
1
1
Police department Square footage
25,600
25,600
25,600
25,600
25,600
Building department Square footage
2,500
2,500
2,500
2,500
2,500
Police vehicles
62
61
66
67
63
Building inspector vehicles
3
3
3
3
3
Transportation
Streets (miles)
156
156
156
156
156
Streetlights '
1,085
1,080
1,228
1,236
1,230
Airport
1
1
1
1
1
Public service vehicles
15
17
17
19
22
Physical environment
Public service vehicles
10
10
9
9
15
Culture and recreation
Parks
18
18
18
18
18
Recreation centers
2
2
2
2
2
Park acreage
315.01
315.01
315.01
315.01
315.01
Recreation center square footage
4,859
4,859
4,859
4,859
4,859
Park maintenance vehicles
9
12
13
14
13
Golf course
1
1
1
1
1
Sources: City of Sebastian Administrative Services Department and Park and Recreation Division
' This number represents actual unmetered street lights in the City (source: Florida Power Et Light - January billing).
154
Table XIX - Unaudited
155
Fiscal Year
2009
2008
2007
2006
2005
21,500
21,500
21,500
21,500
21,500
3
3
3
3
5
1
1
1
1
1
25,600
25,600
25,600
25,600
25,600
2,500
2,500
2,500
2,500
2,500
63
62
57
53
52
4
4
5
6
5
156
156
156
156
156
1,240
1,229
1,309
3,808
3,555
1
1
1
1
1
18
23
21
19
14
7
11
10
12
13
18
15
14
14
12
2
2
2
2
2
233.79
233.79
229.37
229.37
223.37
4,859
4,859
4,859
4,859
4,859
13
13
12
11
10
1
1
1
1
1
155