HomeMy WebLinkAbout03-08-2017 Addendum CAFRCITY OF SEBASTIAN, FLORIDA
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HOME OF PELICAN ISLAND
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended September 30, 2016
CITY COUNCIL
Bob McPartlan Jerome Adams
Mayor Vice -Mayor
Andrea Coy
Council Member
Jim Hill Richard Gillmor
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
30
Statement of Activities
31
Fund Financial Statements:
Balance Sheet - Governmental Funds
34
Reconciliation of Fund Balances for Governmental Funds to Net Position
of Governmental Activities
35
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds
36
Reconciliation of Net Changes in Fund Balance of Governmental
Funds to Change in Net Position of Governmental Activities
37
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual:
General Fund
38
Discretionary Sales Tax Fund
39
Riverfront Redevelopment Fund
40
Statement of Net Position - Proprietary Funds
41
Statement of Revenues, Expenses and Changes in Fund
Net Position - Proprietary Funds
42
Statement of Cash Flows - Proprietary Funds
43
Statement of Fiduciary Net Position
45
Statement of Changes in Fiduciary Net Position
46
Notes to Financial Statements
47
CITY OF SEBASTIAN, FLORIDA
0 Table of Contents
Combining and Individual Fund Financial Statements and Schedules:
Page
Required Supplementary Information:
Single -employer Pension Trust Fund:
84
Schedule of Changes in Net Pension Liability and Related Ratios
78
Schedule of the Net Pension Liability
79
Schedule of Investment Returns
79
Schedule of Contributions
80
Other Postemployment Benefits Plan:
88
Schedule of Funding Progress
81
Schedule of Employer Contributions
81
Coastal Florida Public Employees Association Pension Plan:
91
Schedule of Employer Contributions
82
Combining and Individual Fund Financial Statements and Schedules:
Nonmajor Governmental Funds:
Combining Balance Sheet
84
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances
86
Schedule of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual:
Local Option Gas Tax
88
Parking In -Lieu of Fund
89
Recreation Impact Fee Fund
90
Stormwater Utility Fund
91
Law Enforcement Forfeiture Fund
92
Discretionary Sales Surtax Revenue Bonds 2003 Fund
93
Stormwater Utility Revenue Bonds 2003 Fund
94
Agency Fund:
Combining Statement of Changes in Assets and Liabilities 96
Other:
Capital Assets used in the Operations of Governmental Funds:
Comparative Schedule by Source 98
Schedule by Function and Activity 99
Schedule of Changes by Function and Activity 100
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 103
Independent Auditors' Management Letter 105
Independent Accountants' Report 109
CITY OF SEBASTIAN, FLORIDA
0 Table of Contents
Page
STATISTICAL SECTION (UNAUDITED) 111
Statistical Section Table of Contents
113
Financial Trends Information
Net Position by Component
114
Changes in Net Position
116
Fund Balances, Governmental Funds
120
Changes in Fund Balances, Governmental Funds
122
Program Revenues by Function/ Program
124
Revenue Capacity Information
Tax Revenues by Source
126
Property Tax Rates ($1 per $1,000 of Taxable Value) - Direct and
Overlapping Governments
127
Assessed and Estimated Actual Value of Taxable Property
128
Principal Property Taxpayers
130
Property Taxes, Levies and Collections
131
Debt Capacity Information
Ratio of Outstanding Debt by Type
132
Ratio of Net General Bonded Debt to Estimated Actual Value and Net
General Bonded Debt Per Capita
133
Computation of Legal Debt Margin for General Obligation Bonds
134
Pledged Revenue Coverage
136
Demographic and Economic Information
Demographic and Economic Statistics
138
Principal Employers
140
Operating Information
Full -Time Equivalent City Employees by Function/ Program
142
Operating Indicators by Function/ Program
144
Capital Asset Statistics by Function/ Program
146
INTRODUCTORY SECTION
CITY OF SEBASTIAN, FLORIDA
CITY OFFICIALS
For the Year Ended September 30, 2016
Joseph Griffin
City Manager
Michelle Morris
Police Chief
Frank Watanabe
City Engineer
Wayne Eseltine
Building Official
Scott Baker
Airport Director
Robert Ginsburg
City Attorney
DEPARTMENT HEADS
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Jeanette Williams, MMC
City Clerk
Kenneth W. Killgore
Administrative Services Director
Tim Walker
Public Works Director
Greg Gardner
Golf Course Director
CFfY OF
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HOME OF PELICAN ISLAND
February 10, 2017
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, 2016, 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, 2016.
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 LLC., has issued an unmodified ("clean") opinion on the City of
Sebastian's financial statements for the year ended September 30, 2016. The independent auditors'
report is located on page 13, 14 and 15. Management's discussion and analysis (MD&A) immediately
follows the independent auditors' report and provides a narrative introduction, overview, and analysis
of the basic financial statements. The MD&A 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 23,137 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 few years. As of September 2016, the
Florida Research Et Economic Database reported an improved unemployment rate of 6.2%, 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 industry sector was Health Care and Social Assistance with 18% of the employment,
followed by Retail Trade with 16.8% of the employment and Accommodation and Food Services with
10.8% of the employment. 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 2015 was $49,887, 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 3.8556 for fiscal year 2015. 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 significantly with 191 permits being issued for new construction in fiscal
year 2016 with a value of $43.4 million compared to 142 permits being issued for new construction in
fiscal year 2015 with a value of $40.6 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 the minimum of 30% of the General Fund expenditures budget, were 49% for the fiscal year
2016 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 original budget for fiscal year 2016 was balanced without
a reduction of fund balances.
Major Initiatives
Administration
New agreements were negotiated with the two collective bargaining units. In related measures,
modifications were made to the employee health insurance coverages to reduce the employee's cost for
family coverage and an agreement was reached to pursue changes to the Police Officer's Pension Plan.
These actions should help attract better job applicants. Also, a competitive selection process for
property, liability and workers' compensation insurance resulted in a 20% savings for these coverages.
Recognizing that a number of employees could be interested in a voluntary early retirement option, a
program was adopted to pay $1,000 for each year of service and continue group insurance to age 65 or
up to three years for those over age 50 having at least 15 years of service. With 13 employees electing
the program, several departments were reorganized and a number of promotional opportunities became
available. This action was also expected to significantly reduce the annual payroll and enable the City
to recover the amounts paid out within about a two year time frame.
Stormwater
The main focus of Stormwater activities the past fiscal year continued to be on the Stormwater
Management Program, which includes capital projects, maintenance, citizen response and education
and forward planning. The City discontinued the program to install quarter -round piping in drainage
swales and began a renewed focus on mowing and clearing swales and ditches. This is expected to be a
better means of insuring a smooth flow of stormwater. Additional equipment was acquired and City
crews are now concentrated on the task of keeping those areas clear of vegetation. Operation and
maintenance activities are accounted for in the 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.
Traffic Et Transportation
The City continues to work on transportation improvements. Grant matching funds were allocated from
discretionary sales taxes for roadway enhancements to the Main Street entrance to the Airport and for
improvements to Tulip Drive. Funds were also allocated from discretionary sales taxes to purchase a
new Patch Truck needed for repairing pot holes throughout the City and for the major reconstruction of
Barber Street. Several roads were resurfaced using funds available from local option gas taxes. Other
projects planned for future years include repairs to sidewalks, plus additional street repaving that will
be funded by local option gas taxes.
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.
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) to develop the
necessary infrastructure. Planned improvements 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 matching funds provided by discretionary sales taxes.
Additional grants were also secured for installation of a baffle box, drainage improvements and other
enhancements. During fiscal year 2016, a project to pave the CavCor boat parking property was paid
from the tax increment funds available in the Riverfront Community Development Agency Fund. In other
areas, the City continued supporting the use of Lakefront Park for gatherings organized by various
community groups, including the Clam Bake, Chamber of Commerce and Art Club. The City also used
discretionary sales taxes and monies advanced from the Building Enterprise Fund to allow the Golf
Course to totally replace the golf course irrigation system.
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, 2015. 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
CITY OF SEBASTIAN, FLORIDA
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CITY OF SEBASTIAN, FLORIDA
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FINANCIAL SECTION
11
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INDEPENDENT AUDITORS' REPORT
February 10, 2017
Honorable Mayor and
Members of City Council
City of Sebastian
Sebastian, Florida
Report on the Financial Statements
Rebmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
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, 2016, 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 &atements
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, 2016, 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.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis and the schedules 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 February 10,
2017, 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 (MDELA) 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 and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of
resources at the close of the fiscal year 2016 by $55,983,849 (net position). Of this amount, $2,898,724
(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 $1,025,641 in governmental activities and $686,939 in business -type
activities primarily from an increase of $760,934 in general revenues from governmental activities and $705,067 in
transfers recorded in business -type activities.
Governmental funds reported a combined ending fund balance of $11,850,326, an increase of $330,117 from the
prior year. Almost 46% of this amount, $5,397,274 is unassigned and available for spending, a $166,569 increase
from fiscal year 2015, due to a larger amount of tax revenues in the General Fund.
The Golf Course Fund and Airport Fund reported an increase in the deficit in unrestricted net position, due to
operating losses in those funds, largely resulting from the large investments made in capital assets. 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 increase in overall net position at the end of the year.
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).
18
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, physical and economical environment, transportation,
cultural and recreation. 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 and Riverfront Redevelopment Fund all of which are
considered to be major funds. Data from the other twelve 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 or schedules 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 City's golf course and airport,
which are major funds, and the buildings department, which is a nonmajor fund.
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.
Other Information. In addition to the basic financial statements and accompanying notes, this report also presents
certain required supplementary information.
WA
CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
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 and deferred outflows of resources exceeded liabilities and deferred inflows of resources
by $55,983,849 at the close of the most recent fiscal year.
Governmental Activities
2016 2015
Current and other assets
$12,603,239
$12,446,304
Capital assets, net
39,992,087
41,261,857
Total assets
52,595,326
53,708,161
Deferred outflows of
resources
1,050,060
905,733
Long-term liabilities
5,397,721
7,597,609
Other liabilities
3,392,050
3,138,184
Total liabilities
8,789,771
10,735,793
Deferred inflows of
resources
144,379
192,506
Net position
Net investment in
capital assets
35,886,087
35,220,857
Restricted
5,209,372
4,997,724
Unrestricted
3,615,777
3,467,014
Total net position
$44,711,236
$43,685,595
Net Position
Business -type Activities
2016 2015
$ (229,839) $ 488,176
12,151, 911 10, 730,146
11,922,072 11,218,322
373,094 398,419
276,365 234,229
649,459 632,648
11,989,666 10,517,895
(717,053) 67,779
$ 11,272,613 $10,585,674
Total
2016 2015
$12,373,400 $12,934,480
52,143,998 51,992,003
64,517,398 64,926,483
1,050,060
905,733
5,770,815
7,996,028
3,668,415
3,372,413
9,439,230
11,368,441
144,379 192,506
47,875,753
5,209,372
2,898,724
$55,983,849
45,738,752
4,997,724
3,534,793
$54,271,269
A substantial portion of the City's net position, $47,875,753 (85.5 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 $5,209,372 (9.3 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 $2,898,724 (5.2 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, primarily due to the substantial investments made in capital assets this past
year.
20
CITY OF SEBASTIAN, FLORIDA
E Management's Discussion and Analysis
Expenses
General government
3,285,607
3,015,536
Change in Net Position
3,285,607
3,015,536
Governmental Activities
Business -type
Activities
Total
2016
2015
2016
2015
2016
2015
Revenues
2,538,752
2,759,461
Transportation
1,861,946
2,024,814
Program revenues:
1,861,946
2,024,814
Economic environment
364,675
194,630
Charges for services
$ 1,576,721
$ 1,608,600
$ 2,461,829
$ 2,503,127
$ 4,038,550
$ 4,111,727
Operating grants
323,101
345,937
-
-
323,101
345,937
Capital grants
809,932
994,546
841,668
702,154
1,651,600
1,696,700
General revenues:
82,943
100,468
Golf course
-
-
1,584,214
Property taxes
3,942,048
3,594,210
-
-
3,942,048
3,594,210
Other taxes
5,762,921
5,555,270
Building
5,762,921
5,555,270
Intergovernmental
2,466,546
2,365,137
Total expenses
14,801,547
2,466,546
2,365,137
Other
1,650,986
1,546,950
6,787
25,970
1,657,773
1,572,920
Total revenues
16,532,255
16,010,650
3,310,284
3,231,251
19,842,539
19,241,901
Expenses
General government
3,285,607
3,015,536
3,285,607
3,015,536
Public safety
5,476,136
5,164,197
5,476,136
5,164,197
Physical environment
2,538,752
2,759,461
2,538,752
2,759,461
Transportation
1,861,946
2,024,814
1,861,946
2,024,814
Economic environment
364,675
194,630
364,675
194,630
Cultural and recreation
1,191,488
1,293,246
1,191,488
1,293,246
Interest and fiscal
charges
82,943
100,468
82,943
100,468
Golf course
-
-
1,584,214
1,409,829
1,584,214
1,409,829
Airport
1,197,549
1,038,361
1,197,549
1,038,361
Building
546,649
531,087
546,649
531,087
Total expenses
14,801,547
14,552,352
3,328,412
2,979,277
18,129,959
17,531,629
Change in net position,
before transfers
1,730,708
1,458,298
(18,128)
251,974
1,712,580
1,710,272
Transfers
(705,067)
2,988
705,067
(2,988)
-
-
Change in net position
1,025,641
1,461,286
686,939
248,986
1,712,580
1,710,272
Net position, beginning
of year
43,685,595
43,656,553
10,585,674
10,336,688
54,271,269
53,993,241
Restatement for
implementation of
GASB 68
-
(1,432,244)
-
-
-
(1,432,244)
Net position end, of year
$44,711,236
$43,685,595
$ 11,272,613
$10,585,674
$55,983,849
$54,271,269
The City's net position increased
by $1,712,580 during the current fiscal year. The primary reason for the increase in
net position for governmental activities is
related to an increase
in general
revenues. For
business -type
activities, the
increase in net position is related to investments made in
capital assets made
possible by transfers from
governmental
funds and capital grants.
21
CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
Governmental Activities. Governmental activities increased the City's net position by $1,025,641 as compared to the
prior year increase of $1,461,286. Key elements of this increase are as follows:
An increase in expenses of $249,195
An increase in general revenues of $760,934
A decrease in program revenues of $239,329
A change in transfers of $708,055
6,000,000 -
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
Expenses and Program Revenues - Governmental Activities
General Public safety
government
IntergoN
Other
42
Physical Transportation Economic
environment environment
Revenues by Source - Governmental Activities
Other Charges for services
2%, 100/
22
■ Expenses
■ Program Revenues
Cultural and Interest and
recreation fiscal
grants
it grants
5%
Property taxes
24%
CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
Business -type Activities. Business -type activities increased the City's net position by $686,939. The key elements of
this increase are as follows:
An increase in expenses of $349,135
A decrease in general revenues of $19,183
A decrease in charges for services of $41,298
An increase in capital grants of $139,514
A change in transfers in of $708,055
1,800,000
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
Capital grantq
25%
Golf course
Airport
■ Expenses
■ Program Revenues
05 -
Building
Revenues by Source - Business -type Activities
Operating grants and
23
,':harges for services
75%
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
$11,850,326, an increase of $330,117 from the prior year. Of this amount, 46 percent ($5,397,274) constitutes
unassigned fund balance, which is available for spending at the City's discretion. The remainder of fund balance 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 $5,526,675 while total fund balance amounted to $5,811,428. 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 49.2 percent of total General Fund expenditures, while total
fund balance represents 51.7 percent of that same amount.
The fund balance of the City's General Fund increased by $158,834 during the current fiscal year, as compared to the
$80,738 decrease reported in the prior fiscal year. Key factors in this change are as follows:
Property tax revenues increased by $305,234 due to millage increase and additions to taxable property values.
Charges for services increased by $5,820
Intergovernmental increased by $138,997
Public utility taxes increased by $47,611
Franchise fees increased by $15,915
All other revenues increased by $71,157
Transfers in from other funds were increased by $7,447
Transfers out from other funds were increased by $343,700
Expenditures increased by $358,500
The General Fund originally budgeted for no changes in the fund balance. The final amended budget showed a deficit
of $424,651. The actual increase in fund balance was $158,834. Significant changes in budgetary variances are as
follows:
Property tax revenues had a positive budgetary variance of $8,850, with 96% of the tax roll being collected. 96%
of the tax roll is budgeted as being collected, based on experience. No less than 95% must be budgeted 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.
General Fund expenditures had an overall positive budgetary variance of $484,069. Unanticipated capital
purchases were necessary in several departments, however these were usually covered by savings from operating
accounts or by additional appropriations from reserves.
The Discretionary Sales Tax revenue special revenue fund has a total fund balance $2,709,105, an increase from the
$2,413,576 total fund balance of the prior year. Funds are restricted for projects that are planned in future years.
24
CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
The Riverfront Redevelopment Fund ended the year with $458,053 in fund balance, as a result of the transfers out for
pending construction projects being less than budgeted.
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 $263,023, while the
unrestricted net position (deficit) amounted to ($1,095,926). Compared to the prior year in the same category, net
position increased from the prior year and the unrestricted net position (deficit) changed by from ($264,935) to
($1,095,926). This is mainly due to the increase in noncurrent assets recorded for the fiscal year.
The total net position of the airport fund at the end of the fiscal year amounted to $9,838,655, while the unrestricted
net position (deficit) amounted to ($708,735). Compared to the prior year in the same category, net position has
increased by $346,156 while the unrestricted net position (deficit) has changed from ($642,330) to ($708,735). The
change in the unrestricted net position (deficit) is mainly due to an increase in amounts invested in capital assets
resulting from capital contributions.
The total net position of the building fund at the end of the fiscal year amounted to $1,170,935. This is an increase of
$164,566 from the prior year, which was primarily due to the continuation of healthy levels of operating income.
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 formally approved revisions to the City budget four times. These
budget adjustments fell into three major categories. The first includes amendments to allocate additional funds for
grants, new projects or equipment repairs/ replacements that were not originally budgeted. The second includes
transfers to address budget shortages in operating budget accounts resulting from properly classifying charges or for
unanticipated expenditures. The third includes project transfers to close out capital projects or reallocate funds
between them to address budget shortages due to higher bids than anticipated and/or other unanticipated
expenditures. The main components of the increases are as follows:
Amendments
$12,000 to replace Airport perimeter gates.
$10,600 for trial program for landscaping services at Riverview Park and Indian River Drive.
-$75,000 to discontinue Cemetery Storage Building project.
$16,000 to record donation from the Greer Trust for Police Department expenditures.
$14,450 to replace a roller unit that was too expensive to repair.
$24,600 to make electrical repairs to the Golf Cart Barn.
$60,425 recorded Building Fund loan for roofing and shutters at Golf Course.
$51,285 recorded Building Fund loan for parking lot lights.
$156,125 to purchase an Asphalt Patch Truck.
$32,247 to replace City Council Chamber air conditioner.
$117,000 to use Discretionary Sales Tax Reserves to replace a chipper and tractor.
$18,000 to replace a forklift for the Fleet Management Division.
$20,000 to use MACE Unit disbandment funds to purchase Police equipment.
$19,000 increases Airport Main Street project.
$169,027 to record receipt of State Funds to be deposited to the Police Pension Fund.
$61,844 to record use of auction proceeds for repair of vehicles and to replace forklift.
$10,750 to use Discretionary Sales Tax Reserves to match grant for Airport Master Plan update.
$63,479 to replace work stations at the Police Dispatch Center.
$13,110 to use Discretionary Sales Tax Reserves to match grant for Taxiway Improvements.
$371,548 to use General Fund Reserves for payouts on Voluntary Early Retirement Program.
25
CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
Amendments (Concluded)
$36,400 to use Discretionary Sales Tax Reserves to match grant for Hangar C design work.
$52,524 allocates additional funds for CavCor, Police Parking and Indian River Drive Parking.
$178,500 to record non-cash proceeds from Velocity Building deeded over to the City.
$72,000 to use Discretionary Sales Tax Reserves to fund Airport AWOS System.
$13,984 to allocate funds received from JAG Grant to Police equipment.
$28,116 to use insurance proceeds for damaged wind turbine for netting poles and repairing entrance gate.
$58,614 for all other purposes during the fiscal year.
Operating Budget Transfers
$20,000 to purchase software to enable use of smart phones.
$12,600 to appropriate previous year unexpended budget for the Clear Village program.
$80,270 to adjust departmental charges for expenditures for group insurance.
$10,700 to cover cost of using an IT consultant.
$10,804 to set up project to improve automation of payroll processes.
$10,000 to cover expenditures on baffle box maintenance.
$23,112 to cover work on doors at the Art's and Senior's restrooms.
$25,000 to cover account overages in the Facilities Maintenance Division accounts.
$21,684 to cover overages in the Parks Division accounts.
$7,112 for all transfers between Police Department accounts.
$25,723 for all other transfers between Public Works Department accounts.
$15,755 for all transfers between Golf Course accounts.
$30,637 for all other transfers between other Department accounts.
Project Budget Transfers
-$91,500 closes Highway Beautification and City Hall Parking projects to cover Veteran's Memorial project.
-$297,490 closed out a number of completed projects.
-$42,447 to close completed Fish House Improvements project.
$142,500 transfers Repaving project funds to a specific Main Street Repaving project.
$726,000 allocates Barber St. Bridge project, Columbariums project Et LOGT Reserves to Repaving project.
$162,000 discontinues 1/4 Round installation work and uses funds for purchase of an Armadillo unit.
$60,000 transfers Sidewalk project funds to specific Brushfoot Sidewalk project.
$33,270 uses rest of Columbarium project funds for additional funding of Police Evidence Building project.
$22,000 uses Shoreline Stabilization project funds for additional funding of CavCor project.
$7,490 for all other transfers between other projects.
During the fiscal year, total General Fund actual expenditures were $484,069 less than final amended budgetary
estimates. The overall variance on revenues and expenditures resulted in a $158,834 change to existing fund
balances. To address a number of unbudgeted repairs and replacements that had been deferred during the years of
the economic downturn, $104,686 was allocated from fund balance.
26
CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
Capital Asset and Debt Administration
Capital Assets. At the end of fiscal year 2016, the City had $52,143,998 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 increase (including additions and deductions) of $151,996, or (0.3%), 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.
Governmental activities had the following major changes during the fiscal year:
An increase in buildings mainly due to the fish house at the working waterfront.
A decrease in improvements mainly due to the amount of depreciation
A decrease in infrastructure mainly due to depreciation.
An increase in construction in progress due to the CavCor boat parking improvements.
Business -type activities had the following major changes during the fiscal year:
An increase in buildings due to acquiring the Velocity production hangar.
An increase in improvements due to the new irrigation system at the Golf Course.
A decrease in infrastructure mainly due to the amount of depreciation.
An increase in construction in progress due to the maintenance building at the Airport.
Long -Term Liabilities. At the end of the current fiscal year, the City had total long-term liabilities outstanding of
$5,770,815. Of this amount, $4,268,245 consist of notes pledging specific revenues to the repayment of the debt.
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.
Total Long -Term Liabilities
Governmental Activities Business -type Activities Total
2016 2015 2016 2015 2016 2015
Notes payable $ 4,106,000 $ 6,041,000 $ 162,245 $ 212,250 $ 4,268,245 $ 6,253,250
Compensated absences 1,200,521 1,465,409 210,849 186,169 1,411,370 1,651,578
Termination benefits - - - - - -
Pollution remediation 91,200 91,200 - - 91,200 91,200
Total $ 5,397,721 $ 7,597,609 $ 373,094 $ 398,419 $ 5,770,815 $ 7,996,028
The City's total debt decreased by $2,225,213 (27.83%) during the current fiscal year. The net decrease was
attributable to annual principal payments that occurred during the year.
27
Capital Assets (Net of Depreciation)
Governmental Activities
Business -type
Activities
Total
2016
2015
2016
2015
2016
2015
Land
$ 8,319,588
$ 8,319,588
$ 19,436
$ 19,436
$ 8,339,024
$ 8,339,024
Buildings
7,755,514
7,602,031
4,923,679
4,763,414
12,679,193
12,365,445
Improvements
2,950,753
3,231,519
1,590,742
789,680
4,541,495
4,021,199
Equipment
2,083,959
2,040,362
489,079
372,574
2,573,038
2,412,936
Infrastructure
18,655,238
19,595,982
4,048,111
4,441,103
22,703,349
24,037,085
Construction in progress
227,035
472,375
1,080,864
343,939
1,307,899
816,314
Total capital assets, net
$39,992,087
$41,261,857
$ 12,151,911
$10,730,146
$52,143,998
$51,992,003
Governmental activities had the following major changes during the fiscal year:
An increase in buildings mainly due to the fish house at the working waterfront.
A decrease in improvements mainly due to the amount of depreciation
A decrease in infrastructure mainly due to depreciation.
An increase in construction in progress due to the CavCor boat parking improvements.
Business -type activities had the following major changes during the fiscal year:
An increase in buildings due to acquiring the Velocity production hangar.
An increase in improvements due to the new irrigation system at the Golf Course.
A decrease in infrastructure mainly due to the amount of depreciation.
An increase in construction in progress due to the maintenance building at the Airport.
Long -Term Liabilities. At the end of the current fiscal year, the City had total long-term liabilities outstanding of
$5,770,815. Of this amount, $4,268,245 consist of notes pledging specific revenues to the repayment of the debt.
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.
Total Long -Term Liabilities
Governmental Activities Business -type Activities Total
2016 2015 2016 2015 2016 2015
Notes payable $ 4,106,000 $ 6,041,000 $ 162,245 $ 212,250 $ 4,268,245 $ 6,253,250
Compensated absences 1,200,521 1,465,409 210,849 186,169 1,411,370 1,651,578
Termination benefits - - - - - -
Pollution remediation 91,200 91,200 - - 91,200 91,200
Total $ 5,397,721 $ 7,597,609 $ 373,094 $ 398,419 $ 5,770,815 $ 7,996,028
The City's total debt decreased by $2,225,213 (27.83%) during the current fiscal year. The net decrease was
attributable to annual principal payments that occurred during the year.
27
CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
The City's debt is primarily bank notes which 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 2017 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.® The Indian River County unemployment rate in September 2016 was 6.2
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.
The City experienced a 7.2% overall increase in property values for 2017. The millage of 3.8000 was levied in order
to continue allocating funds to improve the Indian River Lagoon and resurface roadways. The City was also able to
restore one-half of the $371,548 to cash reserves that was paid out in 2016 for the Voluntary Early Retirement
program.
The Golf Course reported less revenues from fees in 2016. It was necessary to make additional temporary loans from
the General Fund at year end and although its net position improved with the large investment in capital assets, a
portion of that investment was accomplished by an advance from the Building Fund. The City anticipates the
investments made will result in an increase in customers that will generate higher revenues and enable the loans and
advances to begin to be repaid.
The General Fund also made temporary interfund loans to the Airport in order to provide sufficient cash flow to cover
large construction contract payments associated with reimbursable grants. Sizable operating losses are primarily the
result of depreciation on capital assets.
With a good level of revenues from building permit fees, the Building Enterprise Fund continued to report a positive
change in net position. There are signs of steady 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
29
CITY OF SEBASTIAN, FLORIDA
Statement of Net Position
September 30, 2016
Assets
Cash and cash equivalents
Temporarily restricted cash and cash equivalents
Investments
Permanently restricted investments
Receivables
Internal balances
Prepaid items
Inventories
Deposits held in escrow
Capital assets not being depreciated
Capital assets being depreciated, net
Total assets
Deferred outflows of resources
Deferred pension amounts
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 obligation
Net pension liability
Total liabilities
Deferred inflows of resources
Deferred pension amounts
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
$ 5,674,714 $ 532,178 $ 6,206,892
1,287,851
-
1,287,851
2,777,066
711,739
3,488,805
74,402
-
74,402
972,293
148,342
1,120,635
1,676,438
(1,676,438)
-
87,928
20,942
108,870
39,723
31,796
71,519
12,824
1,602
14,426
8,546,623
1,100,300
9,646,923
31,445,464
11,051,611
42,497,075
52,595,326
11,922,072
64,517,398
1,050,060
-
1,050,060
694,237
182,341
876,578
27,321
417
27,738
58,676
92,414
151,090
1,022,009
51,956
1,073,965
4,375,712
321,138
4,696,850
29,241
1,193
30,434
2,582,575
-
2,582,575
8,789,771
649,459
9,439,230
144,379
-
144,379
35,886,087 11,989,666 47,875,753
141,115
996,778
141,115
996,778
3,073,005
3,073,005
458,053
458,053
457,465
457,465
82,956
82,956
3,615,777
(717,053) 2,898,724
$ 44,711,236 $ 11,272,613 $ 55,983,849
The accompanying notes are an integral part of these basic financial statements.
30
CITY OF SEBASTIAN, FLORIDA
Statement of Activities
For the Year Ended September 30, 2016
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
Expenses
$ 3,285,607 $
5,476,136
2,538,752
1,861,946
364,675
1,191,488
82,943
14,801,547
Program Revenues
Operating Capital Net
Charges Grants and Grants and (Expense)
for Services Contributions Contributions Revenue
374,581 $
98,446
1,049,735
53,959
1,576,721
1,584,214 1,135,357
1,197,549 516,403
546,649 810,069
3,328,412 2,461,829
$ 18,129,959 $ 4,038,550 $
31
104,814 $ $ (2,806,212)
207,935 (5,169,755)
- (1,489,017)
10,352 646,132 (1,205,462)
- - (364,675)
163,800 (973,729)
- (82,943)
323,101 809,932 (12,091,793)
(448,857)
841,668 160,522
- 263,420
- 841,668 (24,915)
323,101 $ 1,651,600 $ (12,116,708)
continued...
CITY OF SEBASTIAN, FLORIDA
Statement of Activities
For the Year Ended September 30, 2016
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
$ (12,091,793) $ (24,915) $ (12,116,708)
3,942,048
3,942,048
5,762,921
5,762,921
1,257,430
1,257,430
2,466,546
-
2,466,546
77,317
6,787
84,104
316,239
-
316,239
(705,067)
705,067
-
13,117,434
711,854
13,829,288
1,025,641
686,939
1,712,580
43,685,595 10,585,674 54,271,269
$ 44,711,236 $ 11,272,613 $ 55,983,849
concluded
The accompanying notes are an integral part of these basic financial statements.
32
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33
CITY OF SEBASTIAN, FLORIDA
Balance Sheet
Governmental Funds
September 30, 2016
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
Nonmajor Total
Discretionary Riverfront Governmental Governmental
General Sales Tax Redevelopment Funds Funds
$ 3,363,563 $ 660,559 $ 363,678 $ 2,574,765 $ 6,962,565
1,074,335 1,205,152 97,232 474,749 2,851,468
398,148 - 398,148
1,088,132 - 1,088,132
201,434 292,756 79,955 574,145
12,824 - - 12,824
39,723 39,723
87,928 - 87,928
100,000 550,638 650,638
$ 6,366,087 $ 2,709,105 $ 460,910 $ 3,129,469 $ 12,665,571
Liabilities
1,224,429
Accounts payable and accrued liabilities $
419,172 $
Due to other funds
-
Due to other governments
76,811
Unearned revenue
58,676
Total liabilities
554,659
Fund balances (deficit)
$ 2,857 $ 195,397 $ 617,426
- 62,332 62,332
- 76,811
58,676
Nonspendable 227,651 -
Restricted 46,262 2,709,105
Committed
Assigned 10,840
Unassigned 5,526,675 -
Total fund balances 5,811,428 2,709,105
Total liabilities and fund balances $ 6,366,087 $ 2,709,105 $
The accompanying notes are an integral part of these basic financial statements.
34
2,857 257,729 815,245
- 996,778
1,224,429
458,053 1,026,495
4,239,915
977,868
977,868
-
10,840
(129,401)
5,397,274
458,053 2,871,740 11,850,326
460,910 $ 3,129,469 $ 12,665,571
CITY OF SEBASTIAN, FLORIDA
Reconciliation
Fund Balances for Governmental Funds
to Net Position of Governmental Activities
September 30, 2016
Fund balances - total governmental funds $ 11,850,326
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 8,546,623
Capital assets being depreciated, net 31,445,464
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 (4,106,000)
Compensated absences (1,200,521)
Net other postemployment benefits obligation (29,241)
Contamination liability (91,200)
Accrued interest on long-term debt (27,321)
Certain pension -related amounts, such as the net pension liability and deferred amounts
are not due and payable in the current period or do not represent current financial
resources and therefore are not reported in the funds.
Net pension liability (2,582,575)
Deferred outflows related to the net pension liability 1,050,060
Deferred inflows related to the net pension liability (144,379)
Net position of governmental activities $ 44,711,236
The accompanying notes are an integral part of these basic financial statements.
35
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2016
The accompanying notes are an integral part of these basic financial statements.
36
Nonmajor
Total
Discretionary
Riverfront
Governmental
Governmental
General
Sales Tax
Redevelopment
Funds
Funds
Revenues
Taxes:
Property
$ 3,603,024
$
$ 339,024
$
$ 3,942,048
Public utility
2,686,322
-
2,686,322
Sales
-
3,052,152
3,052,152
Motor fuel
-
-
646,132
646,132
Franchise fees
1,257,430
-
1,257,430
Licenses and permits
136,614
-
136,614
Intergovernmental
2,654,806
54,260
2,709,066
Impact fees
-
163,800
163,800
Charges for services
326,775
1,064,720
1,391,495
Fines
72,011
-
-
1,048
73,059
Investment earnings
28,859
28,449
3,019
16,990
77,317
Contributions and donations
72,681
-
-
7,900
80,581
Otherrevenues
226,579
-
36,000
53,660
316,239
Total revenues
11,065,101
3,080,601
378,043
2,008,510
16,532,255
Expenditures
Current:
General government
3,051,521
-
2,033
-
3,053,554
Public safety
4,959,610
-
8,648
4,968,258
Physical environment
1,234,117
82,580
1,316,697
Transportation
951,380
-
217,539
1,168,919
Economic environment
-
331,589
-
331,589
Culture and recreation
849,789
-
-
849,789
Debt service:
Principal
-
1,935,000
1,935,000
Interest and fiscal charges
-
-
92,907
92,907
Capital outlay
191,903
15,084
1,573,371
1,780,358
Total expenditures
11,238,320
-
348,706
3,910,045
15,497,071
Revenues (under) over expenditures
(173,219)
3,080,601
29,337
(1,901,535)
1,035,184
Other financing sources (uses)
Transfers in
675,753
-
10,600
3,007,926
3,694,279
Transfers out
(343,700)
(2,785,072)
(28,612)
(1,241,962)
(4,399,346)
Total other financing sources (uses)
332,053
(2,785,072)
(18,012)
1,765,964
(705,067)
Net changes in fund balances
158,834
295,529
11,325
(135,571)
330,117
Fund balances, beginning of year
5,652,594
2,413,576
446,728
3,007,311
11,520,209
Fund balances, end of year
$ 5,811,428
$ 2,709,105
$ 458,053
$ 2,871,740
$ 11,850,326
The accompanying notes are an integral part of these basic financial statements.
36
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, 2016
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 disposal 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
Change in the accrual for compensated absences
Change in the accrual for other postemployment benefits
Change in the net pension liability and related deferred amounts
Change in net position of governmental activities
The accompanying notes are an integral part of these basic financial statements.
37
$ 330,117
1,795,583
(3,050,128)
(15,225)
1,935,000
9,964
264,888
(4,515)
(240,043)
$ 1,025,641
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - General Fund
For the Year Ended September 30, 2016
The accompanying notes are an integral part of these basic financial statements.
38
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Taxes:
Property
$ 3,594,174
$ 3,594,174
$ 3,603,024
$ 8,850
Public utility
2,684,100
2,684,100
2,686,322
2,222
Franchise fees
1,255,053
1,255,053
1,257,430
2,377
Licenses and permits
145,500
145,500
136,614
(8,886)
Intergovernmental
2,383,860
2,566,871
2,654,806
87,935
Charges for services
334,534
334,534
326,775
(7,759)
Fines
65,300
85,300
72,011
(13,289)
Investment earnings
21,000
21,000
28,859
7,859
Contributions and donations
11,100
29,055
72,681
43,626
Otherrevenues
149,700
216,404
226,579
10,175
Total revenues
10,644,321
10,931,991
11,065,101
133,110
Expenditures
Current:
General government
2,923,833
3,162,170
3,051,521
(110,649)
Public safety
4,696,513
5,014,271
4,959,610
(54,661)
Physical environment
1,406,699
1,405,886
1,234,117
(171,769)
Transportation
1,005,599
997,127
951,380
(45,747)
Culture and recreation
871,161
883,339
849,789
(33,550)
Capital outlay
211,000
259,596
191,903
(67,693)
Total expenditures
11,114,805
11,722,389
11,238,320
(484,069)
Revenues over(under)expenditures
(470,484)
(790,398)
(173,219)
617,179
Other financing sources (uses)
Transfers in
770,484
727,151
675,753
(51,398)
Transfers out
(300,000)
(361,404)
(343,700)
17,704
Total other financing sources(uses)
470,484
365,747
332,053
(33,694)
Net changes in fund balances
-
(424,651)
158,834
583,485
Fund balance, beginning of year
5,652,594
5,652,594
5,652,594
-
Fund balance, end of year
$ 5,652,594
$ 5,227,943
$ 5,811,428
$ 583,485
The accompanying notes are an integral part of these basic financial statements.
38
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, 2016
Revenues
Taxes:
Sales
Investment earnings
Total revenues
Other financing sources uses
Transfers out
Net changes in fund balance
Fund balance, beginning of year
Fund balance, end of year
Original Final
Budget Budget
Actual Over
(Under) Final
Actual Budget
$ 2,931,500 $ 2,931,500 $ 3,052,152 $ 120,652
23,353 23,353 28,449 5,096
2,954,853 2,954,853 3,080,601 125,748
(2,954,853) (4,907,073) (2,785,072) 2,122,001
- (1,952,220) 295,529 2,247,749
2,413,576 2,413,576 2,413,576 -
$ 2,413,576 $ 461,356 $ 2,709,105 $ 2,247,749
The accompanying notes are an integral part of these basic financial statements.
I&A
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, 2016
The accompanying notes are an integral part of these basic financial statements.
40
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Taxes:
Property
$ 325,099
$ 325,099
$ 339,024
$ 13,925
Investment earnings
440
440
3,019
2,579
Otherrevenues
36,000
36,000
36,000
-
Total revenues
361,539
361,539
378,043
16,504
Expenditures
Current:
General government
2,568
2,568
2,033
(535)
Economic environment
258,355
532,351
331,589
(200,762)
Capital outlay
-
8,500
15,084
6,584
Total expenditures
260,923
543,419
348,706
(194,713)
Revenues over(under)expenditures
100,616
(181,880)
29,337
211,217
Other financing sources (uses)
Transfers in
64,384
10,600
10,600
-
Transfers out
(165,000)
(220,417)
(28,612)
191,805
Total other financing sources (uses)
(100,616)
(209,817)
(18,012)
191,805
Net changes in fund balance
-
(391,697)
11,325
403,022
Fund balance, beginning of year
446,728
446,728
446,728
-
Fund balance, end of year
$ 446,728
$ 55,031
$ 458,053
$ 403,022
The accompanying notes are an integral part of these basic financial statements.
40
CITY OF SEBASTIAN, FLORIDA
Statement of Net Position
Proprietary Funds
September 30, 2016
Assets
Current assets:
Cash and cash equivalents
Investments
Accounts receivable
Due from other governments
Inventories
Deposits held in escrow
Prepaid items
Total current assets
Noncurrent assets:
Advance to other funds
Capital assets:
Land
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Construction in process
Less accumulated depreciation
Total noncurrent assets
Total assets
Liabilities
Current liabilities:
Accounts payable and accrued liabilities
Due to other funds
Due to other governments
Unearned revenues
Current portion of notes payable
Total current liabilities
Noncurrent liabilities:
Compensated absences, net of current portion
Advance from other fund
Notes payable
Net other postemployment benefit obligation
Total noncurrent liabilities
Total liabilities
Net position
Net investment in capital assets
Unrestricted (deficit)
Total net position
Business -type Activities - Enterprise Funds
9,060
Golf
19,436
Nonmajor -
6,187,616
Course
Airport
Building
Total
$ 1,498
$ 384,728
$ 145,952 $
532,178
-
-
711,739
711,739
233
5,288
-
5,521
-
142,821
(1,633,910)
142,821
12,871
18,925
-
31,796
493
616
493
1,602
8,119
9,889
2,934
20,942
23,214
562,267
861,118
1,446,599
356,700 356,700
-
9,060
10,376
19,436
498,223
6,187,616
-
6,685,839
1,147,670
1,662,147
-
2,809,817
398,018
913,415
116,997
1,428,430
1,100,951
7,362,883
-
8,463,834
10,242
1,070,622
1,080,864
(1,633,910)
(6,658,353)
(44,046)
(8,336,309)
1,521,194
10,547,390
440,027
12,508,611
1,544,408
11,109,657
1,301,145
13,955,210
65,586
83,887
20,156
169,629
535,800
490,000
-
1,025,800
6,046
1,125
5,958
13,129
69,721
14,673
8,020
92,414
51,956
-
-
51,956
729,109
589,685
34,134
1,352,928
84,925
30,489
95,435
210,849
356,700
650,638
-
1,007,338
110,289
-
-
110,289
362
190
641
1,193
552,276
681,317
96,076
1,329,669
1,281,385
1,271,002
130,210
2,682,597
1,358,949
10,547,390
83,327
11,989,666
(1,095,926)
(708,735)
1,087,608
(717,053)
$ 263,023
$ 9,838,655 $
1,170,935 $
11,272,613
The accompanying notes are an integral part of these basic financial statements.
41
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds
For the Year Ended September 30, 2016
Operating revenues
Charges for fees and rents:
Building permit fees
Golf course fees
Rents
Otherrevenues
Total operating revenues
Operating expenses:
Salaries, wages and employee benefits
Contractual services, materials and supplies
Depreciation
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses)
Investment income
Interest expense
Gain on disposal of capital assets
Total nonoperating revenues (expenses)
Income (loss) before capital contributions and transfers
Capital contributions
Transfers in
Transfers out
Total transfers
Change in net position
Net position, beginning of year
Net position, end of year
Business -type Activities - Enterprise Funds
Golf Nonmajor -
Course Airport Building Total
1,089,255
28,473
13,729
1,131,457
365,632
1,076,735
134,575
1,576,942
(445,485)
332,238
184,025
516,263
141,636
318,388
718,149
1,178,173
(661,910)
804,568 $
804,568
428,763
104,152
13,734
546,649
257,919
804,568
1,089,255
360,711
197,754
2,452,288
936,031
1,499,275
866,458
3,301,764
(849,476)
616
939
5,232
6,787
(7,272)
(19,376)
-
(26,648)
3,900
140
5,501
9,541
(2,756)
(18,297)
10,733
(10,320)
(448,241)
(680,207)
268,652
(859,796)
-
841,668
-
841,668
624,458
184,695
809,153
-
-
(104,086)
(104,086)
624,458
184,695
(104,086)
705,067
176,217
346,156
164,566
686,939
86,806
9,492,499
1,006,369
10,585,674
263,023 $
9,838,655 $
1,170,935
$ 11,272,613
The accompanying notes are an integral part of these basic financial statements.
42
CITY OF SEBASTIAN, FLORIDA
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2016
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
Repayment of long term debt
Acquisition and construction of capital assets
Proceeds from sale of capital assets
Receipts from capital contributions
Net cash used by capital and
related financing activities
Cash flows from investing activities
Sale of investments
Purchase of investments
Investment income
Net cash provided by (used in) investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
Business -type Activities - Enterprise Funds
Golf
Nonmajor -
Course
Airport
Building
Total
$ 1,141,158
$ 1,029,009
$ 447,916
$ 2,618,083
(1,038,242)
(347,313)
(99,812)
(1,485,367)
(352,611)
(140,689)
(417,849)
(911,149)
(249,695)
541,007
(69,745)
221,567
(7,272)
(19,376)
(26,648)
-
-
(104,086)
(104,086)
1,383,158
134,046
1,517,204
1,375,886
114,670
(104,086)
1,386,470
(50,005)
-
(50,005)
(1,091,778)
(1,148,440)
(65,736)
(2,305,954)
3,900
17,870
5,501
27,271
-
841,668
-
841,668
(1,137,883)
(288,902)
(60,235)
(1,487,020)
129,287
2,140
131,427
(122,638)
-
(3,852)
(126,490)
616
939
5,232
6,787
7,265
939
3,520
11,724
(4,427)
367,714
(230,546)
132,741
5,925
17,014
376,498
399,437
$ 1,498
$ 384,728
$ 145,952
$ 532,178
43
continued...
CITY OF SEBASTIAN, FLORIDA
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2016
Cash flow from operating activities:
Operating income (loss) $
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:
Depreciation expense
Change in:
Accounts receivable
Inventories
Due from other governments
Advance to other funds
Prepaid items
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
(445,485) $ (661,910) $ 257,919 $ (849,476)
134,575
718,149
13,734
866,458
(233)
47
-
(186)
(34)
(6,179)
(6,213)
-
507,184
507,184
-
(356,700)
(356,700)
(4,458)
(2,247)
388
(6,317)
42,985
(20,499)
3,952
26,438
858
234
380
1,472
9,076
5,281
(332)
14,025
12,960
915
10,806
24,681
61
32
108
201
195,790
1,202,917
(327,664)
1,071,043
(249,695) $
541,007 $
(69,745) $
221,567
concluded
The accompanying notes are an integral part of these basic financial statements.
44
CITY OF SEBASTIAN, FLORIDA
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2016
Assets
Cash and cash equivalents
Receivables:
Interest and dividends
Investments, at fair value:
Local government surplus trust funds investment pools
Money market funds
United States treasuries
United States agencies
Unit Investment trusts
Municipal obligations
Domestic corporate bonds
Domestic corporate equities
Foreign corporate equities
EFT equities
Total investments
Total assets
Liabilities
Refunds payable
Net position
Restricted for pension benefits
Pension
Trust
Agency
Police
Officers'
Performance
Pension
Deposits
$ -
$ 32,841
33,095
509,494
571,515
255,812
96,153
131,449
2,604,211
8,044,036
238,184
4,761
12,455,615
73,750
73,750
12,488,710 $ 106,591
- $ 106,591
$ 12,488,710
The accompanying notes are an integral part of these basic financial statements.
45
CITY OF SEBASTIAN, FLORIDA
Statement of Changes in Fiduciary Net Position
Fiduciary Fund - Pension Trust
For the Year Ended September 30, 2016
Additions
Contributions:
Employer
Plan members
State
Total contributions
Investment income:
Net increase in fair value of investments
Interest and dividends
Total investment income
Investment expenses
Net investment earnings
Total additions
Deductions
Benefits
Administrative expenses
Total deductions
Change in net position
Net position, beginning of year
Net position, end of year
Police
Officers'
Pension
$ 322,998
167,309
169,027
659,334
829,478
300,653
1,130,131
(62,992)
1,067,139
1,726,473
493,765
28,025
521,790
1,204,683
11,284,027
$ 12,488,710
The accompanying notes are an integral part of these basic financial statements.
46
NOTES TO FINANCIAL STATEMENTS
47
CITY OF SEBASTIAN, FLORIDA
0 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 23,137 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 legally separate entities that are from the City but so intertwined with the City that
they are, 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 being 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."
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.
48
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
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.
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.
49
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
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.
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 enterprise funds account for those operations that are financed and operated in a manner similar to private
business or where the City has decided that the determination of revenues earned, costs incurred and/or net
income is necessary for management accountability.
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.
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.
50
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
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.
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 General Fund and restricted fund balance in
other 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.
51
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
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. As of September 30, 2016, the City 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.
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 estimated acquisition cost 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:
52
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
52
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
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 represents a consumption of net position that
applies to future periods and so will not be recognized as an outflow of resources until then. The City reports
deferred outflows of resources related to the net pension liability. A portion of these costs represent
contributions to the plan subsequent to the plan measurement date. More detailed information can be found in
Note 13.
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.
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 future periods and so will not be recognized as an inflow of resources until that time. The
governmental funds report unavailable revenues, which arise only under a modified accrual basis of accounting
that are reported as deferred inflows of resources. These amounts are deferred and recognized as an inflow of
resources in the period that the amounts become available. In addition, the City reports deferred inflows of
resources for changes in expected and actual investment returns, assumptions and benefits provided in its pension
plans.
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.
53
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
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 Council has the authority and 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.
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.
54
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
3. DEPOSITS AND INVESTMENTS
Following is a reconciliation of deposit and investment balances as of September 30, 2016:
Statement of Net Position
Cash and cash equivalents $ 6,206,892
Temporarily restricted cash and cash equivalents 1,287,851
Investments 3,488,805
Permanently restricted investments 74,402
Statement of Fiduciary Net Position
Police Officers' Pension:
Investments 12,455,615
Agency funds:
Cash and cash equivalents 32,841
Investments 73,750
Total $ 23,620,156
Deposits and investments
Bank deposits:
Checking and savings accounts $ 7,525,154
Investments:
Investments, at fair value 3,636,957
Police officers' pension fund investments 12,455,615
Cash on hand 2,430
Total $ 23,620,156
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, 2016, the carrying amount of the City of Sebastian's deposits
with banks was $7,525,154 and the bank balance was $7,841,344. 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.
55
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
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.
As of September 30, 2016, the City had the following investments and effective duration presented in terms of
years:
Investment Type
General investments
Local government surplus
funds trust fund ("SBA")
Investment Maturity (Years)
Fair Value Less Than 1
$ 3,636,957 $ 3,636,957 $
Police officers' pension fund investments
From 1-3 From 4-6 Over 7
Money market
$ 509,494 $
509,494
$ - $
-
$ -
United States treasuries
571,515
105,157
201,356
171,861
93,141
United States agencies
255,812
-
27,698
-
228,114
Unit Investment trusts
96,153
96,153
-
-
-
Municipal obligations
131,449
-
57,659
34,870
38,920
Domestic corporate bonds
2,604,211
100,436
935,926
638,812
929,037
Domestic corporate equities
8,044,036
8,044,036
-
-
-
Foreign corporate equities
238,184
238,184
-
-
-
EFT equities
4,761
4,761
$ 12,455,615 $
9,098,221
$ 1,222,639 $
845,543
$ 1,289,212
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.
56
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Credit Risk. The City investment policy that covers all investments, except the Pension Trust Fund, permits
investments in the following securities, 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 8 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 "A -I" 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 "AA" by Standard Et Poor's.
As of September 30, 2016, the City's investment securities, for all investments except the Pension Trust Fund,
were all individually rated AAAm by Standard Et Poor's. The investment ratings for the Pension Trust Fund ranged
between AAA+ through BBB+.
As of September 30, 2016, the City had $3,636,957 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, 2016 and amounts may be withdrawn without
penalty.
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.
57
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
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.
As of September 30, 2016, the City had the following issuer concentration based on fair value:
General Investments Pension Investments
Percentage of Percentage of
Issuer Amount Portfolio Amount Portfolio
Local government surplus funds
trust fund ("SBA")
$ 3,636,957 100.00%
$ -
0.00%
Money market
- 0.00%
509,494
4.09%
United States treasuries
0.00%
571,515
4.59%
United States agencies
0.00%
255,812
2.05%
Unit Investment trusts
0.00%
96,153
0.77%
Municipal obligations
0.00%
131,449
1.06%
Domestic corporate bonds
0.00%
2,604,211
20.91%
Domestic corporate equities
0.00%
8,044,036
64.58%
Foreign corporate equities
0.00%
238,184
1.91%
EFT equities
0.00%
4,761
0.04%
Total
$ 3,636,957 100.00%
$ 12,455,615
100.00%
Fair Value Measurement
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted
accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset,
as determined by the City's investment advisors. Level 1 inputs are quoted prices in active markets for identical
assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.
58
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
The City has the following recurring fair value measurements as of September 30, 2016:
4. RECEIVABLES
Receivables are comprised of the following at year-end:
Governmental Business -type Total
Activities Activities
Accounts receivable $ 398,148 $ 5,521 $ 403,669
Due from other governments 574,145 142,821 716,966
$ 972,293 $ 148,342 $ 1,120,635
5. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Level
Level Level
Total
Local government surplus funds
the following at year-end:
trust fund ("SBA")
$ 3,636,957
$ $
$ 3,636,957
Money market
509,494
509,494
United States treasuries
571,515
$ 474,996
571,515
United States agencies
-
255,812
255,812
Unit Investment trusts
96,153
-
96,153
Municipal obligations
-
131,449
131,449
Domestic corporate bonds
-
2,604,211
2,604,211
Domestic corporate equities
7,218,810
825,226
8,044,036
Foreign corporate equities
238,184
-
238,184
EFT equities
4,761
-
4,761
$ 12,275,874
$ 3,816,698 $
$ 16,092,572
4. RECEIVABLES
Receivables are comprised of the following at year-end:
Governmental Business -type Total
Activities Activities
Accounts receivable $ 398,148 $ 5,521 $ 403,669
Due from other governments 574,145 142,821 716,966
$ 972,293 $ 148,342 $ 1,120,635
5. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable and accrued liabilities are comprised of
the following at year-end:
Governmental
Business -type
Total
Activities
Activities
Accounts payable
$ 339,065
$ 135,931
$ 474,996
Accrued liabilities
278,361
33,281
311,642
Due to other governments
76,811
13,129
89,940
$ 694,237
$ 182,341
$ 876,578
WA
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, 2016, was as follows:
Due to and from primary government funds
General Fund
Airport
Golf Course
Nonmajor Governmental Funds
Due from Due to Other
Other Funds Funds
$ 1,088,132 $
- 490,000
535,800
62,332
$ 1,088,132 $ 1,088,132
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.
Advances to and from primary government funds
General Fund
Discretionary Sales Tax
Airport
Building
Golf Course
Advance from Advance to
Other Funds Other Funds
$ $ 100,000
550,638
650,638 -
- 356,700
356,700 -
$ 1,007,338 $ 1,007,338
The balance of $550,638 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, $24,362 has been
repaid as of September 30, 2016. The balance of $100,000 advanced to the airport from general fund represents a
cash loan made in 2007 without any specified terms for repayment. The $356,000 was advanced from the Building
Fund to replace the irrigation system and make other improvements at the Golf Course.
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
For the year ended September 30, 2016, interfund transfers consisted of the following:
Transfers out
Riverfront Nonmajor
Discretionary Redevelopment Governmental
Transfers In General Fund Sales Tax Fund Fund Funds Building Fund Totals
General Fund $ - $ $ 21,667 $ 550,000 $ 104,086 $ 675,753
Riverfront Redevelopment
Fund 10,600 - - - 10,600
Nonmajor Governmental
Funds 305,700 2,003,319 6,945 691,962 3,007,926
Airport Fund 2,800 181,895 - - 184,695
Golf Course 24,600 599,858 624,458
$ 343,700 $ 2,785,072 $ 28,612 $ 1,241,962 $ 104,086 $ 4,503,432
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, 2016, was as follows:
Beginning Ending
Balance Additions Disposals Transfers Balance
Governmental activities
Capital assets, not being depreciated:
Land
$ 8,319,588 $
- $
- $
-
$ 8,319,588
Construction in progress
4727375
554,434
(157225)
(784,549)
227,035
8,7917963
554,434
(157225)
(784,549)
8,546,623
Capital assets, being depreciated:
Buildings
12,609,808
14,069
-
486,952
13,110,829
Non -building improvements
6,833,246
36,592
-
6,869,838
Machinery and equipment
8,691,504
736,749
(759,897)
-
8,668,356
Infrastructure
39,186,897
453,739
297,597
39,938,233
67,321,455
1,241,149
(759,897)
784,549
68,587,256
Less accumulated depreciation for:
Buildings
(5,0077777)
(3477538)
-
(5,355,315)
Non -building improvements
(3,6017727)
(3177358)
-
(3,919,085)
Machinery and equipment
(6,651,142)
(6937152)
759,897
(6,584,397)
Infrastructure
(19,590,915)
(1,6927080)
-
(21,282,995)
(34,8517561)
(3,0507128)
759,897
(37,141,792)
Total capital assets
being depreciated, net
32,469,894
(1,8087979)
-
784,549
31,445,464
Governmental activities
capital assets, net
$ 41,261,857 $
(1,254,545) $
(15,225) $
-
$ 39,992,087
61
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
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:
$ 19,436 $
- $
$ - $
19,436
343,939
1,786,918
(1,049,993)
1,080,864
363,375
1,786,918
(1,049,993)
1,100,300
6,341,864
178,500
165,476
6,685,840
1,889,637
35,664
884,517
2,809,818
1,206,471
252,231
(30,272) -
1,428,430
8,441,588
52,641
(30,395) -
8,463,834
17,879,560
519,036
(60,667) 1,049,993
19,387,922
Buildings
(1,578,450)
(183,711)
Depreciation expense was charged to functions/ programs of the primary
(1,762,161)
Non -building improvements
(1,099,957)
(119,119)
-
(1,219,076)
Machinery and equipment
(833,897)
(135,726)
30,272
(939,351)
Infrastructure
(4,000,485)
(427,902)
12,664
(4,415,723)
Economic environment
(7,512,789)
(866,458)
42,936
(8,336,311)
Total capital assets
Total governmental activities
$
3,050,128
Depreciation of business -type activities by function
being depreciated, net
10,366,771
(347,422)
(17,731)
1,049,993 11,051,611
Business -type activities
capital assets, net $ 10,730,146 $ 1,439,496
$
(17,731) $
Depreciation expense was charged to functions/ programs of the primary
government as follows:
Depreciation of governmental activities by function
General government
$
313,187
Public safety
304,080
Transportation
787,600
Physical environment
1,218,282
Economic environment
33,086
Cultural and recreation
393,893
Total governmental activities
$
3,050,128
Depreciation of business -type activities by function
Golf course
$
134,575
Airport
718,149
Building
13,734
Total business -type activities
$
866,458
62
$ 12,151,911
CITY OF SEBASTIAN, FLORIDA
0 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.
As of September 30, 2016, there was no outstanding in -substance defeased debt.
The following is a summary of governmental activities long-term debt transactions for the year ended September
30, 2016:
Beginning Ending Due Within
Balance Additions Deductions Balance One Year
Governmental activities
Notes payable $ 6,041,000 $ - $ (1,935,000) $ 4,106,000 $ 931,000
Compensated absences 1,465,409 149,110 (413,998) 1,200,521 91,009
Pollution remediation 91,200 - 91,200 -
Totals governmental
activities $ 7,597,609 $ 149,110 $ (2,348,998) $ 5,397,721 $ 1,022,009
Notes Davable
Florida Gas Tax Revenue Note, due in annual installments of
$97,000 to $121,000 plus interest at 1.94%
through 2023. $ 1,478,000
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. 353,000
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. 2,275,000
$ 4,106,000
63
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
The following is a summary of business -type activities long-term debt transactions for the year ended September
30, 2016:
Note Davable
Note payable to a bank, collateralized by real property,
payable in equal monthly installments of $4,756,
including interest charged at 3.850%. The note
matures on November 7, 2017 $ 162,245
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
2017 $ 931,000 $ 71,547 $ 51,956 $ 5,120
2018 590,000 56,523 110,289 341
2019 601,000 45,836 - -
2020 611,000 34,939
2021 620,000 23,868
2022-2023 753,000 13,808
$ 4,106,000 $ 246,521 $ 162,245 $ 5,461
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.
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.
64
Beginning
Ending
Due Within
Balance
Additions Deductions Balance
One Year
Business -type activities
Note payable
$ 212,250
$ - $ (50,005) $ 162,245
$ 51,956
Compensated absences
186,169
24,680 210,849
-
Totals business -type
activities
$ 398,419
$ 24,680 $ (50,005) $ 373,094
$ 51,956
Note Davable
Note payable to a bank, collateralized by real property,
payable in equal monthly installments of $4,756,
including interest charged at 3.850%. The note
matures on November 7, 2017 $ 162,245
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
2017 $ 931,000 $ 71,547 $ 51,956 $ 5,120
2018 590,000 56,523 110,289 341
2019 601,000 45,836 - -
2020 611,000 34,939
2021 620,000 23,868
2022-2023 753,000 13,808
$ 4,106,000 $ 246,521 $ 162,245 $ 5,461
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.
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.
64
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
9. LEASES
Operating Leases - Lessee
The City is obligated under a lease for land accounted for as an operating lease. Operating leases do not give rise
to property rights or lease obligations. Total costs for the lease was $100,000 for the fiscal year ended
September 30, 2016. This represents the Airport Fund's lease obligation for the property used as the City's golf
course. The following is a schedule by years for future minimum rental payments required under the operating
lease that has initial or remaining noncancelable lease terms in excess of one year at September 30, 2016:
Year Ended
$ 250,132
September 30,
Airport
2017
$ 100,000
2018
100,000
2019
100,000
2020
100,000
2021
100,000
2022-2026
500,000
2027-2031
500,000
2032-2036
500,000
2037-2041
500,000
2042-2045
400,000
Total $ 2,900,000
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
2017
$ 250,132
2018
233,133
2019
222,272
2020
224,689
2021
227,106
2022-2026
1,003,073
2027-2031
975,509
2032-2036
1,084,533
2037-2041
1,223,677
2042-2046
1,301,264
2047-2051
1,127,916
2052-2055
1,107,056
Total $ 8,980,361
65
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
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
$100,000 through 2035. 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
2017
$ 214,372
2018
205,079
2019
170,781
2020
170,781
2021
170,781
2022-2026
726,293
2027-2031
582,418
2032-2035
276,209
Total $ 2,516,714
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, 2016, was 3.8556 mills. Total tax collections were approximately
96.38% 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.
66
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
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.
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, 2016 to determine
the required contribution for the fiscal year ending September 30, 2016. 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.
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.
Concentrations. At September 30, 2016, 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 3 for
details of these concentrations.
67
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Plan Membership. As of September 30, 2016, employee membership data was as follows:
Inactive plan members or beneficiaries currently receiving benefits 12
Inactive plan members entitled to but not yet receiving benefits 10
Active plan members 32
Total membership 54
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.
Contributions. Contributions to the plan are based upon the hire date of the members. Members hired prior to
October 1, 2011 contribute 8% of their salary, effective October 1, 2012 (5% of salary prior to that date).
Members hired after September 30, 2011 contribute 5% of their salary. City and state contributions consist of the
remaining amount required in order to pay current costs and amortize unfunded past service cost, if any, over a
period not exceeding 30 years.
Rate of Return. For the year ended September 30, 2016, the annual money -weighted rate of return on pension
plan investments, net of pension plan investment expense, was 9.39 percent. The money -weighted rate of return
expresses investment performance, net of investment expense, adjusted for the changing amounts actually
invested.
Net Pension Liability of the City. The components of the net pension liability of the City at September 30, 2016,
were as follows:
Total pension liability $ 15,071,285
Less: Plan fiduciary net position 12,488,710
City's net pension liability $ 2,582,575
Plan fiduciary net position as
percentage of total pension
liability 82.86%
Actuarial Assumptions. The total pension liability was determined by an actuarial valuation as of October 1, 2015
updated to September 30, 2016 using the following actuarial assumptions applied to all measurement periods.
Inflation
Salary increases
Discount rate
Investment rate of return
2.30%
3.80% - 16.00%
7.45%
7.45%
Mortality is based on the RP -2000 Table with no projection. Disabled lives are set forward 5 years. The City feels
this assumption sufficiently accommodates future mortality improvements.
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
The other significant assumptions are based upon the most recent actuarial experience study performed on
September 16, 2013, 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, 2016 are
summarized in the following table:
Inflation 2.30%
Risk adjustments (0.15%)
Investment rate of return 7.45%
Discount Rate. The discount rate used to measure the total pension liability was 7.45 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.
Changes in Assumptions. The City revised certain actuarial assumptions in the September 30, 2016 valuation that
had a significant impact on the total pension liability from the prior measurement date. The most significant
change was a decrease in the expected investment rate of return from 7.60% to 7.45%.
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 7.45 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 (6.45 percent) or
one percentage point higher (8.45 percent)than the current rate.
One Percent
Current
Long-term
Money -
Discount Rate
Increase
Expected Real
Weighted
8.45%
Target
Rate of
Rate of
Asset Class
Allocation
Return
Return
Domestic equity
50.00%
7.45%
3.73%
International equity
10.00%
7.05%
0.71%
Fixed income
40.00%
2.15%
0.86%
Total
100.00%
5.30%
Inflation 2.30%
Risk adjustments (0.15%)
Investment rate of return 7.45%
Discount Rate. The discount rate used to measure the total pension liability was 7.45 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.
Changes in Assumptions. The City revised certain actuarial assumptions in the September 30, 2016 valuation that
had a significant impact on the total pension liability from the prior measurement date. The most significant
change was a decrease in the expected investment rate of return from 7.60% to 7.45%.
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 7.45 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 (6.45 percent) or
one percentage point higher (8.45 percent)than the current rate.
One Percent
Current
One Percent
Decrease
Discount Rate
Increase
6.45%
7.45%
8.45%
Net Pension Liability $ 4,527,139
$ 2,582,575
$ 960,821
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Changes in the net pension liability. The components of the change in the net pension liability are summarized as
follows:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
Balances at September 30, 2015 $ 13,434,105 $ 11,284,027 $ 2,150,078
Changes for the year:
Service cost
Interest on total pension liability
Differences between expected and
actual experience
Assumption changes
Benefit payments, including refunds
of employee contributions
Employer contributions
State contributions
Employee contributions
Pension plan net investment
income (loss)
Administrative expense
Net changes
Balances at September 30, 2016
418,143 418,143
1,027,558 1,027,558
59,175 59,175
626,069 626,069
(493,765) (493,765)
322,998 (322,998)
169,027 (169,027)
167,309 (167,309)
1,067,139 (1,067,139)
(28,025) 28,025
1,637,180 1,204,683 432,497
$ 15,071,285 $ 12,488,710 $ 2,582,575
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions. For
the year ended September 30, 2016, the City recognized pension expense of $584,782. At September 30, 2016,
the City reported pension -related deferred outflows of resources and deferred inflows of resources from the
following sources:
Deferred Deferred Net Deferred
Outflows of Inflows of Outflows of
Resources Resources Resources
Difference between expected and
actual experience $ 47,340 $
Changes in assumptions 634,775
Net difference between projected and actual
earnings on pension plan investments 367,945
$ 1,050,060 $
70
144,379 $ (97,039)
- 634,775
- 367,945
144,379 $ 905,681
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Amounts reported as pension -related deferred outflows of resources and deferred inflows of resources will be
recognized in pension expense as follows:
Year Ended
September 30, Amount
2017
$ 270,996
2018
270,996
2019
270,996
2020
92,693
Total $ 905,681
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. The plan is not a state or local governmental plan, is used to provide
defined benefit pensions both to employees of state or local governmental employers and to employees of
employers that are not state or local governmental employers, has no predominant state or local governmental
employer and issues audited financials following FASB guidelines, which can be obtained at
http://www.cwaitu.com. The City of Sebastian approved the plan by Resolution No. R-01-36, effective April 29,
2001. There is currently no expiration date of the collective-bargaining agreement requiring contributions to the
pension plan. The total number of governmental employees covered as of September 30, 2016, was 69. The City
chose to early implement the GASB 78 disclosure requirements in FY15.
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, and 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.
71
CITY OF SEBASTIAN, FLORIDA
0 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.
Employer Withdrawal Liability. Under federal law, employers who partially or completely withdraw from a
multiemployer plan are assessed withdrawal liability for their proportionate share of the plan's unfunded vested
liabilities as of the beginning of the year in which they withdraw. Withdrawal liability is usually paid in quarterly
installments as determined by a statutory formula over a maximum of 20 years.
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 2015-2016 fiscal year. Employees do not
contribute to this plan. Contributions to the CWA Pension Plan for the fiscal years ended September 30, 2014,
2015 and 2016 were $204,361, $217,916 and $200,889 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.
Plan Participation. As of September 30, 2016, there were a total of 17 employees participating in the plan.
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
Annuities. Retirement benefits can be utilized to purchase an annuity.
72
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
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.
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 2015-2016 fiscal year. Employees
do not contribute to this Plan. Contributions to the 401 Defined Contribution Plan for the fiscal years ended
September 30, 2014, 2015 and 2016 were $113,098, $130,719 and $151,891 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
2015 and 2016 estimate, using the Entry Age Normal (level percentage of pay) Method, produced an unfunded
obligation of $50,901 and a total annual required contribution of $5,024 with the net OPEB cost of $4,716, of
which $4,515 is the general fund portion. The City elected to fund the OPEB obligation on a pay-as-you-go basis.
The enterprise fund portion of $201 is also recognized in the enterprise fund financial statements. The entire
unfunded obligation was recognized in the government -wide 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, 2016,
the amount actually contributed to the plan, and changes in the City's net OPEB obligation:
Annual required contribution $ 5,024
Interest on net OPEB obligation 841
Adjustment to annual required contribution (1,149)
Net OPEB cost 4,716
Contributions made -
Increase in net OPEB obligation 4,716
Net OPEB obligation, beginning of year 25,718
Net OPEB obligation, end of year $ 30,434
73
CITY OF SEBASTIAN, FLORIDA
0 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 2016 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
2014 $ 4,207 0.0% $ 21,022
2015 4,696 0.0% 25,718
2016 4,716 0.0% 30,434
Funded Status and Funding Progress. As of October 1, 2015, 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 $6,561,930, and the ratio of the UAAL to the covered
payroll 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, 2015 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 2014. 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, 2015 was 29 years.
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,
2016, no retiring employees made this election, and $0 was recorded at year end as the total accrued termination
benefits in the governmental activities of the government -wide financial statements.
74
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
15. FUND BALANCES - GOVERNMENTAL FUNDS
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:
Nonspendable:
Inventory
Prepaids
Long-term advances
Permanent fund corpus
Total nonspendable
Restricted for:
Debt service
Infrastructure
Redevelopment
Stormwater
Law enforcement
Total restricted
Committed for:
Recreational system
development
Development of
public parking
Total committed
Assigned for:
Law enforcement events
Unassigned
Total fund balances,
governmental funds
Discretionary Riverfront Nonmajor
General Fund Sales Tax Redevelopment Funds
$ 39,723 $ $ $ $
87,928
100,000
- 996,778
227,651 996,778
46,262
46,262
2,709,105
2,709,105
10,840
5,526,675 -
$ 5,811,428 $ 2,709,105 $
75
458,053
458,053
168,436
363,900
457,465
36,694
1,026,495
Total
39,723
87,928
100,000
996,778
1,224,429
168,436
3,073,005
458,053
457,465
82,956
4,239,915
904,893
904,893
72,975
72,975
977,868
977,868
10,840
- (129,401) 5,397,274
458,053 $ 2,871,740 $ 11,850,326
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, 2016, was as follows:
Governmental Business -type Total
Activities Activities
Capital assets:
Capital assets not being depreciated $ 8,546,623 $ 1,100,300 $ 9,646,923
Capital assets being depreciated, net 31,445,464 11,051,611 42,497,075
39,992,087 12,151,911 52,143,998
Related debt:
Total notes payable
Net investment in capital assets
17. COMMITMENTS AND CONTINGENCIES
A. Contracts and Other Commitments
4,106,000 162,245 4,268,245
$ 35,886,087 $ 11,989,666 $ 47,875,753
The City has various contracts and commitments outstanding as of September 30, 2016. In the Capital Projects
Fund, there are contracts for a Patch Truck, Tulip Drive drainage improvements, CavCor parking lot
improvements, reconstruction and paving of Barber Street and construction of Hangar "C" at the Airport.
A summary of these projects at September 30, 2016 is as follows:
Remaining
Total Paid as of Balance at
Total Contract September 30, September 30,
Price 2016 2016
Patch Truck
$ 156,125 $
- $ 156,125
Tulip Drive
247,328
(30,600) 216,728
CavCor
225,301
225,301
Barber Street
478,118
478,118
Hangar C
1,658,811
(291,032) 1,367,779
Total
$ 2,765,683 $
(321,632) $ 2,444,051
76
REQUIRED SUPPLEMENTARY INFORMATION
r�i
CITY OF SEBASTIAN, FLORIDA
403,611 $
396,146 $
367,653
1,027,558
Required Supplementary Information
914,243
853,018
-
22,218
Single -employer Pension Trust Fund
-
-
(4,316)
-
Schedule of Changes
in Net Pension Liability and
Related Ratios
626,069
Fiscal Year
Fiscal Year
Fiscal Year
Fiscal Year
(496,363)
Ending
Ending
Ending
Ending
881,883
September 30,
September 30,
September 30,
September 30,
10,910,010
2016
2015
2014
2013
Total pension liability
Service cost
Interest on total pension liability
Change in excess state money
Changes of benefit terms
Differences between expected and actual experience
Changes of assumptions
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 (loss)
Benefit payments
Administrative expense
Net change in plan fiduciary net position
Plan fiduciary net position, beginning of year
Plan fiduciary net position, end of year
Net pension liability
Plan fiduciary net position as a percentage of total pension liability
$ 418,143 $
403,611 $
396,146 $
367,653
1,027,558
979,259
914,243
853,018
-
22,218
24,386
-
-
(4,316)
-
59,175
(240,633)
626,069
223,200
(493,765)
(496,363)
(452,892)
(465,435)
1,637,180
886,976
881,883
755,236
13,434,105
12,547,129
11,665,246
10,910,010
15,071,285
13,434,105
12,547,129
11,665,246
322,998
320,179
401,103
396,603
169,027
145,700
147,868
145,961
167,309
161,270
160,494
154,683
1,067,139
(60,326)
951,910
1,029,818
(493,765)
(496,363)
(452,892)
(465,435)
(28,025)
(39,673)
(27,815)
(32,153)
1,204,683
30,787
1,180,668
1,229,477
11,284,027
11,253,240
10,072,572
8,843,096
12,488,710 11,284,027 11,253,240 10,072,573
$ 2,582,575 $ 2,150,078 $ 1,293,889 $ 1,592,673
82.86% 84.00% 89.69% 86.35%
Covered payroll $ 2,263,866 $ 2,154,612 $ 2,106,767 $ 2,131,399
Net pension liability as a percentage of covered payroll 114.08% 99.79% 61.42% 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.
78
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Single -employer Pension Trust Fund
Schedule of Investment Returns
Fiscal Year
Ending Annual Return
September 30, (')
2013 11.51%
2014 9.42%
2015 -0.45%
2016 9.39%
(') 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.
WA
Schedule of the Net Pension Liability
Plan Net
Net Pension
Position as a
Liability as a
Fiscal Year
Percentage of
Percentage of
Ending
Total Pension
Plan Net
Net Pension
Total Pension
Covered
Covered
September 30,
Liability
Position
Liability
Liability
Payroll
Payroll
2013
$ 11,665,246
$ 10,072,573
$ 1,592,673
86.35% $
2,131,399
74.72%
2014
12,547,129
11,253,240
1,293,889
89.69%
2,106,767
61.42%
2015
13,434,105
11,284,027
2,150,078
84.00%
2,154,612
99.79%
2016
15,071,285
12,488,710
2,582,575
82.86%
2,263,866
114.08%
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 Investment Returns
Fiscal Year
Ending Annual Return
September 30, (')
2013 11.51%
2014 9.42%
2015 -0.45%
2016 9.39%
(') 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.
WA
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Single -employer Pension Trust Fund
Schedule of Contributions
Actual
Contribution
Fiscal Year Actuarially Contribution as Percentage
Ending Determined City State Deficiency Covered of Covered
September 30, Contribution Contribution Contribution (Excess) Payroll Payroll
2013 $ 506,560
$ 396,603 $ 145,961 $ (36,004) $ 2,131,399 25.46%
2014 524,585
401,103 147,868 (24,386) 2,106,767 26.06%
2015 596,502
320,179 145,700 130,623 2,154,612 21.62%
2016 667,764
322,998 169,027 175,739 2,263,866 21.73%
Notes to Schedule of Contributions
Valuation date
October 1, 2014
Notes
Actuarially determined contribution amounts are calculated as of October 1, two years
prior to the end of the fiscal year in which contributions are reported.
Methods and assumptions used to
determine contribution rates:
Funding method
Frozen initial liability cost method
Amortization method
Level percentage -of -payroll, closed
Remaining amortization period
28 Years (as of October 1, 2014)
Mortality
RP -2000 Table with no projection. Based on a study of over 650
public safety funds, this table reflects a 10% margin for future
mortality improvements. (Disabled lives set forward 5 years).
Interest rate
7.75% per year compounded annually, net of investment related expen!
Inflation
2.30% per year
Retirement age
Earlier of: 11 age 55 and 10 years of credited service, or 2) age 52 and
25 years of credited service, regardless of age. Also, any member
who has reached Normal Retirement is assumed to continue
employment for one additional year.
Early retirement
Commencing at the assumed Early Retirement Age (50), members are
assumed to retire with an immediate subsidized benefit at the rate
of 5% per year.
Disability rates
Age based rates with increasing probability of disablement at higher
ages. A sample of rates are shown below:
Age Assumption
30 0.12%
40 0.21%
50 0.54%
60 2.70%
Additionally, it is assumed that 75% of disablements and active
Member deaths are service related.
Termination rates
Credited Service Assumption
First two years 14.00%
Years 3-9 5.70%
Years 10-14 2.80%
15 years and
Greater 0.00%
Salary increases
Credited Service Assumption
First year 16.00%
Years 2-14 7.40%
15 years and
Greater 3.80%
Final salary load
The projected salary at retirement is increased 20% to account for
Lump sum payments.
Payroll growth
3% for amortization of all UAAL bases
Actuarial asset method
Market Value, net of investment -related expenses
80
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Other Postemployment Benefits Plan
Schedule of Employer Contributions
Other Postemployment Benefits Plan
Fiscal
Annual
Schedule
of Funding Progress
Percentage
September 30,
Contributions
Contributed
9/30/2010
Other Postemployment Benefits Plan
0%
9/30/2011
4,700
0%
9/30/2012
Actuarial
0%
9/30/2013
3,674
0%
9/30/2014
4,207
Accrued
9/30/2015
5,024
UAAL as a
9/30/2016
5,024
Actuarial
Liability
Unfunded
Percentage
Actuarial
Value of
(AAL) -
AAL Funded
Covered
of Covered
Valuation
Assets
Entry Age
(UAAL) Ratio
Payroll
Payroll
Fiscal Year
Date
(a)
(b)
(b -a) (a / b)
(c)
((b -a) / c)
2010
9/30/2009
$
$ 98,100 $
98,100
$ 6,424,614
2%
2011
9/30/2010
67,500
67,500
6,426,614
1%
2012
9/30/2010
50,901
50,901
5,933,331
1%
2013
9/30/2013
50,901
50,901
5,693,181
1%
2014
9/30/2014
50,901
50,901
6,044,900
1%
2015
9/30/2015
50,901
50,901
6,213,151
1%
2016
9/30/2015
50,901
50,901
6,561,930
1%
Schedule of Employer Contributions
Other Postemployment Benefits Plan
Fiscal
Annual
Year Ending
Required
Percentage
September 30,
Contributions
Contributed
9/30/2010
$ 4,600
0%
9/30/2011
4,700
0%
9/30/2012
3,800
0%
9/30/2013
3,674
0%
9/30/2014
4,207
0%
9/30/2015
5,024
0%
9/30/2016
5,024
0%
81
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Coastal Florida Public Employees Association Pension Plan
Schedule of Employer Contributions
Coastal Florida Public Employees Association Pension Plan
Fiscal Annual
Year Ending Required
September 30, Contributions
9/30/2006 $
229,159
9/30/2007
254,909
9/30/2008
241,718
9/30/2009
254,997
9/30/2010
234,219
9/30/2011
223,113
9/30/2012
210,258
9/30/2013
202,612
9/30/2014
204,361
9/30/2015
217,916
9/30/2016
200,889
Notes to Schedule of Employer Contributions - Coastal Florida Public Employees Association Pension Plan
Critical Status. Under federal pension law, a plan generally will be considered to be in "critical' status if either the funded percentage of
the plan is less than 65 percent or if certain other tests are met. If a pension plan enters critical status, the trustees of the plan are required
to adopt a rehabilitation plan. Rehabilitation plans establish steps and benchmarks for pension plans to improve their funding status over a
specified period of time.
The Plan's actuary has certified that for the 2014 Plan year, the Plan was in critical status because the Plan has a deficit in the minimum
funding standard account. The Board of Trustees adopted a rehabilitation plan on March 8, 2010, that for new pensions: eliminates the 60
month minimum guarantee in the Life/5 pension option; increases the minimum age for Early Pension from age 60 to 62 (with 20 years of
service credit); removes the Early Pension subsidy by increasing the reduction factors; discontinues the offering of retroactive pension
payments; and required 5 years of service credit to vest for participants reaching normal retirement age before a break in service. A
mandatory increase in contributions is not required under the Rehabilitation Plan, but decreases in contribution rates or the exclusion of
covered employees are not permitted. A copy of the rehabilitation plan may be obtained be contacting the Coastal Pension Plan office.
82
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
83
CITY OF SEBASTIAN, FLORIDA
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2016
Special Revenue Funds
84
Local
Law
Option
Parking
Recreation
Stormwater
Enforcement
Gas Tax
In -Lieu -of
Impact Fee
Utility
Forfeiture
Assets
Cash and cash equivalents
$ 310,677
$ -
$ 611,803
$ 362,022
$ 2,412
Investments
-
72,975
293,090
-
34,282
Due from other governments
54,088
-
-
12,534
-
Total assets
$ 364,765
$ 72,975
$ 904,893
$ 374,556
$ 36,694
Liabilities
Accounts payable and
accrued liabilities
865
-
-
-
-
Due to other funds
-
Total liabilities
865
Fund balances:
Nonspendable
-
-
-
Restricted
363,900
-
-
374,556
36,694
Committed
-
72,975
904,893
-
-
Unassigned
-
-
-
-
-
Total fund balances
363,900
72,975
904,893
374,556
36,694
Total liabilities and
fund balances
$ 364,765
$ 72,975
$ 904,893
$ 374,556
$ 36,694
84
Debt Service
Capital Projects Funds
Permanent
Discretionary Stormwater
Total
Sales Surtax Utility
General
Stormwater
Nonmajor
Revenue Note Revenue
Capital
Transportation
Capital
Utility
Governmental
2013 Bonds 2003
Improvements
Improvements
Projects
Improvements
Cemetery
Funds
$ $ 168,436
$
$
$ 114,130
$ 82,909
$ 922,376
$ 2,574,765
-
-
-
74,402
474,749
-
13,333
-
-
-
79,955
$ $ 168,436
$ 13,333
$
$ 114,130
$ 82,909
$ 996,778
$ 3,129,469
-
77,336
3,066
114,130
-
-
195,397
18,905
43,427
-
62,332
96,241
46,493
114,130
-
257,729
-
-
-
-
-
996,778
996,778
168,436
82,909
-
1,026,495
-
-
977,868
-
(82,908)
(46,493)
-
-
(129,401)
168,436
(82,908)
(46,493)
-
82,909
996,778
2,871,740
$ $ 168,436
$ 13,333
$ -
$ 114,130
$ 82,909
$ 996,778
$ 3,129,469
85
CITY OF SEBASTIAN, FLORIDA
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances - Nonmajor Governmental Funds
For the Year Ended September 30, 2016
86
Special Revenue Funds
Local
Law
Option
Parking
Recreation
Stormwater
Enforcement
Gas Tax
In -Lieu -of
Impact Fee
Utility
Forfeiture
Revenues
Taxes:
Motor fuel
$ 646,132 $
$ $
$
Intergovernmental
10,352
Impact fees
-
163,800
Charges for services
-
991,055
Fines
-
-
-
1,048
Investment earnings
1,793
358
4,353
3,401
214
Contributions and donations
-
-
-
-
-
Other revenues
-
26,130
-
-
27,530
Total revenues
658,277
26,488
168,153
994,456
28,792
Expenditures
Current:
Public safety
-
-
-
-
8,648
Physical environment
-
-
50,700
-
Transportation
214,569
62
-
Debt Service:
Principal
211,000
-
Interest and fiscal charges
31,748
-
-
Capitaloutlay
-
-
14,875
-
15,159
Total expenditures
457,317
62
14,875
50,700
23,807
Revenues over(under)expenditures
200,960
26,426
153,278
943,756
4,985
Other financing sources (uses)
Transfers in
200,000
-
-
100,000
-
Transfers out
(444,255)
(17,524)
(769,499)
Total other financing sources (uses)
(244,255)
-
(17,524)
(669,499)
-
Net change in fund balances
(43,295)
26,426
135,754
274,257
4,985
Fund balances, beginning of year
407,195
46,549
769,139
100,299
31,709
Fund balances, end of year
$ 363,900 $
72,975
$ 904,893 $
374,556
$ 36,694
86
Debt Service
Capital Projects Funds
Permanent
Discretionary
Stormwater
Total
Sales Surtax
Utility
General
Stormwater
Nonmajor
Revenue Note
Revenue
Capital
Transportation
Capital
Utility
Governmental
2013
Bonds 2003
Improvements
Improvements
Projects
Improvements
Cemetery
Funds
$
$
$ -
$
$
$
$
$ 646,132
43,908
54,260
-
163,800
73,665
1,064,720
-
1,048
914
918
5,039
16,990
-
-
7,900
-
7,900
-
-
-
-
-
53,660
914
918
43,908
7,900
78,704
2,008,510
-
-
-
-
-
8,648
14,789
17,091
82,580
-
-
2,908
-
-
217,539
1,369,000
355,000
-
1,935,000
15,661
45,498
-
-
-
-
92,907
-
-
222,036
641,646
628,828
50,827
1,573,371
1,384,661
400,498
222,036
644,554
643,617
67,918
3,910,045
(1,383,747)
(399,580)
(178,128)
(644,554)
(635,717)
(67,918)
78,704
(1,901,535)
868,342
401,141
139,230
612,669
635,717
50,827
-
3,007,926
-
-
-
-
-
-
(10,684)
(1,241,962)
868,342
401,141
139,230
612,669
635,717
50,827
(10,684)
1,765,964
(515,405)
1,561
(38,898)
(31,885)
-
(17,091)
68,020
(135,571)
515,405
166,875
(44,010)
(14,608)
100,000
928,758
3,007,311
$ -
$ 168,436
$ (82,908)
$ (46,493)
$
$ 82,909
$ 996,778
$ 2,871,740
87
CITY OF SEBASTIAN, FLORIDA
Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Local Option Gas Tax
For the Year Ended September 30, 2016
Revenues
Taxes:
Motor fuel
Intergovernmental
Investment earnings
Total revenues
Expenditures
Current:
Transportation
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses)
Transfers in
Transfers out
Total other financing sources (uses)
Net changes in fund balance
Fund balance, beginning of year
Fund balance, end of year
Original Final
Budget Budget Actual
Actual Over
(Under) Final
Budget
$ 590,000 $ 590,000 $ 646,132 $ 56,132
10,352 10,352 10,352 -
84 84 1,793 1,709
600,436 600,436 658,277 57,841
320,103
352,517
214,569
(137,948)
211,000
211,000
211,000
31,748
31,748
31,748
562,851
595,265
457,317
(137,948)
37,585
5,171
200,960
195,789
200,000
200,000
200,000
-
(200,000)
(450,178)
(444,255)
5,923
-
(250,178)
(244,255)
5,923
37,585
(245,007)
(43,295)
201,712
407,195
407,195
407,195
-
$ 444,780 $
162,188 $
363,900 $
201,712
.,
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, 2016
Revenues
Investment earnings
Otherrevenues
Total revenues
Expenditures
Current:
Transportation
Capital outlay
Total expenditures
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Original Final
Budget Budget
Actual Over
(Under) Final
Actual Budget
$ 100 $
100 $
358 $
258
19,730
19,730
26,130
6,400
19,830
19,830
26,488
6,658
:•
-
62
62
(25,000)
41,129
-
(41,129)
(25,000)
41,129
62
(41,067)
44,830
(21,299)
26,426
47,725
46,549
46,549
46,549
-
$ 91,379 $
25,250 $
72,975 $
47,725
:•
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, 2016
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Impact fees
$ 100,000
$ 100,000 $
163,800
$ 63,800
Investment earnings
1,830
1,830
4,353
2,523
Total revenues
101,830
101,830
168,153
66,323
Expenditures
Capital outlay
-
-
14,875
14,875
Revenue over(under)expenditures
101,830
101,830
153,278
51,448
Other financing sources (uses)
Transfers out
(210,000)
(117,744)
(17,524)
100,220
Net change in fund balances
(108,170)
(15,914)
135,754
151,668
Fund balance, beginning of year
769,139
769,139
769,139
-
Fund balance, end of year
$ 660,969
$ 753,225 $
904,893
$ 151,668
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, 2016
Revenues
Charges for services
Investment earnings
Total revenues
Expenditures
Current:
Physical environment
Revenues over (under) expenditures
Other financing sources (uses)
Transfers in
Transfers out
Other financing sources (users)
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
290,000
127,100
50,700
Actual Over
Original
Final
943,756
(Under) Final
Budget
Budget
Actual
Budget
$ 985,500
$ 985,500
$ 991,055
$ 5,555
1,851
1,851
3,401
1,550
987,351
987,351
994,456
7,105
290,000
127,100
50,700
(76,400)
697,351
860,251
943,756
83,505
100,000
100,000
100,000
-
(649,000)
(859,526)
(769,499)
90,027
(549,000)
(759,526)
(669,499)
90,027
148,351
100,725
274,257
173,532
100,299
100,299
100,299
-
$ 248,650 $
201,024 $
374,556 $
173,532
91
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, 2016
92
Actual Over
(Under) Final
Actual Budget
1,048 $
214
27,530
28,792
8,648
15,159
23,807
4,985
31,709
36,694 $
48
104
27,530
27,682
8,648
15,159
23,807
3,875
3,875
Original
Final
Budget
Budget
Revenues
Fines
$ 1,000
$ 1,000 $
Investment earnings
110
110
Otherrevenues
-
-
Total revenues
1,110
1,110
Expenditures
Current:
Public safety
-
-
Capital outlay
Total expenditures
-
-
Net change in fund balance
1,110
1,110
Fund balance, beginning of year
31,709
31,709
Fund balance, end of year
$ 32,819
$ 32,819 $
92
Actual Over
(Under) Final
Actual Budget
1,048 $
214
27,530
28,792
8,648
15,159
23,807
4,985
31,709
36,694 $
48
104
27,530
27,682
8,648
15,159
23,807
3,875
3,875
CITY OF SEBASTIAN, FLORIDA
Schedule 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, 2016
93
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Investment earnings
$ 2,144
$ 2,144 $
914
$ (1,230)
Expenditures
Debt service:
Principal
1,016,000
1,016,000
1,369,000
353,000
Interest and fiscal charges
12,625
12,625
15,661
3,036
Total expenditures
1,028,625
1,028,625
1,384,661
356,036
Revenues over (under) expenditures
(1,026,481)
(1,026,481)
(1,383,747)
(357,266)
Other financing sources
Transfers in
867,112
867,112
868,342
1,230
Net change in fund balance
(159,369)
(159,369)
(515,405)
(356,036)
Fund balance, beginning of year
515,405
515,405
515,405
Fund balance, end of year
$ 356,036
$ 356,036 $
-
$ (356,036)
93
CITY OF SEBASTIAN, FLORIDA
Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Stormwater Utility Revenue Bond Debt Service Fund
For the Year Ended September 30, 2016
Revenues
Investment earnings
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
Original Final
Budget Budget
$ 133 $ 133 $
Actual Over
(Under) Final
Actual Budget
918 $ 785
355,000
355,000
355,000
-
45,500
45,500
45,498
(2)
400,500
400,500
400,498
(2)
(400,367)
(400,367)
(399,580)
787
401,141
401,141
401,141
-
774
774
1,561
787
166,875
166,875
166,875
-
$ 167,649 $
167,649 $
168,436 $
787
94
AGENCY FUND
95
CITY OF SEBASTIAN, FLORIDA
Combining Statement of Changes in Assets and Liabilities
Agency Fund
For the Year Ended September 30, 2016
Balance
October 1,
2015 Additions
Performance Deposits
Assets
Cash and cash equivalents $ 32,841 $
Investments, at fair value 73,750
Total assets $ 106,591 $
Liabilities
Performance deposits held in escrow $ 106,591 $
96
113,909 $
113,409
227,318 $
500 $
Balance
September 30,
Deletions 2016
(113,909) $
32,841
(113,409)
73,750
(227,318) $
106,591
(500) $ 106,591
CAPITAL ASSETS
97
CITY OF SEBASTIAN, FLORIDA
Comparative Schedule by Source
Capital Assets Used in the Operation of Governmental Funds
September 30, 2016
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
2016 2015
$ 8,319,588
$ 8,319,588
13,110,829
12,609,808
6,869,838
6,833,246
8,668,356
8,691,504
39,938,233
39,186,897
227,035
472,375
$ 77,133,879 $ 76,113,418
$ 4,550,000
$ 5,605,250
2,750,000
2,575,775
725,000
720,500
11,100,000
11,125,600
87,000
67,980
2,200,000
2,114,695
6,600,000
6,602,058
2,200,000
2,110,000
485,000
525,710
2,600,000
2,695,000
22,100,000
20,120,225
7,375,000
7,350,000
13,850,000
13,995,750
36,879
32,500
475,000
472,375
$ 77,133,879 $ 76,113,418
CITY OF SEBASTIAN, FLORIDA
Schedule by Function and Activity
Capital Assets Used in the Operation of Governmental Funds
September 30, 2016
..A
Machinery
Non -Building
and
Functions / Programs
Land
Buildings
Improvements
Equipment
Infrastructure
Total
General government:
Legislative
$
$
$
$ 784
$
$ 784
City manager
24,443
24,443
City clerk
235,585
235,585
Administrative services
1,100
47,904
49,004
MIS
5,841
56,151
588,226
650,218
Audio visual/ broadcast
-
-
35,819
35,819
Facilities maintenance
682,668
21,187
168,279
872,134
Community development
-
85,555
-
60,827
146,382
Non -departmental
3,646,929
6,184,989
126,636
204,375
52,699
10,215,628
Total general government
3,646,929
6,959,053
205,074
1,366,242
52,699
12,229,997
Public safety:
Special operations
-
-
-
43,532
-
43,532
Administration
9,560
3,347,152
89,320
416,561
3,862,593
School resource
-
-
-
42,661
42,661
Road patrol
2,746,833
2,746,833
Community policing
13,863
13,863
Code enforcement
-
54,856
54,856
Investigations
1,701
264,179
265,880
Support services
-
50,516
50,516
Communications
16,404
208,969
225,373
Building department
-
-
-
20,107
20,107
Total public safety
9,560
3,347,152
107,425
3,862,077
7,326,214
Transportation:
Engineering
-
-
-
6,478
-
6,478
Central garage
-
130,489
115,232
198,616
674
445,011
Roads and drainage
47,125
166,907
1,087,622
921,513
18,341,122
20,564,289
Total transportation
47,125
297,396
1,202,854
1,126,607
18,341,796
21,015,778
Economic environment:
Non -departmental
2,308,392
1,040,589
6,562
-
-
3,355,543
Physical environment:
Stormwater
-
-
3,870
1,653,308
19,719,620
21,376,798
Cemetery
572,181
82,019
78,354
67,553
22,717
822,824
Total physical environment
572,181
82,019
82,224
1,720,861
19,742,337
22,199,622
Culture/ recreation:
Parks and recreation
1,735,401
1,384,619
5,265,699
592,570
1,801,401
10,779,690
Total
$ 8,319,588
$ 13,110,828
$ 6,869,838
$ 8,668,357
$ 39,938,233
76,906,844
Construction in progress
227,035
Total
$ 77,133,879
..A
CITY OF SEBASTIAN, FLORIDA
Schedule of Changes by Function and Activity
Capital Assets Used in the Operation of Governmental Funds
September 30, 2016
Capital Assets
Capital Assets
October 1,
Transfers
Transfers September 30,
Functions / Programs
2015
Additions
Disposals
In
Out 2016
General government:
Legislative
$ 784
$ $
$
$ $ 784
City manager
24,443
24,443
City clerk
236,886
1,301
235,585
Administrative services
50,361
1,357
49,004
MIS
791,963
12,754
165,619
11,120
650,218
Audio visual/ broadcast
-
35,819
-
-
35,819
Facilities maintenance
374,004
486,952
16,178
27,356
872,134
Community development
136,291
-
11,657
21,748
146,382
Non -departmental
10,215,628
-
-
-
10,215,628
Total general government
11,830,360
535,525
196,112
60,224
12,229,997
Public safety:
Special operations
69,843
-
26,311
-
43,532
Administration
3,773,877
89,855
1,139
3,862,593
School resource
44,077
-
1,416
42,661
Road patrol
2,667,234
172,954
84,552
8,803 2,746,833
Community policing
13,863
-
-
- 13,863
Code enforcement
82,183
-
-
27,327 54,856
Investigations
238,884
48,677
21,681
- 265,880
Support services
50,516
-
-
- 50,516
Communications
227,690
-
2,317 225,373
Building department
38,430
-
18,323
- 20,107
Total public safety
7,206,597
311,486
153,422
38,447 7,326,214
Transportation:
Engineering
-
6,478
-
- 6,478
Central garage
422,823
35,512
-
-
13,324 445,011
Roads and drainage
19,823,948
772,928
59,914
27,327
- 20,564,289
Total transportation
20,246,771
814,918
59,914
27,327
13,324 21,015,778
Economic environment:
Non -departmental
3,355,543
-
-
-
- 3,355,543
Physical environment:
Stormwater
21,403,715
222,801
263,043
13,325
21,376,798
Cemetery
819,524
3,300
-
-
822,824
Total physical environment
22,223,239
226,101
263,043
13,325
22,199,622
Culture/ recreation:
Parks and recreation
10,778,533
137,671
87,409
-
49,105 10,779,690
Total
75,641,043
2,025,701
759,900
100,876
100,876 76,906,844
Construction in progress
472,375
554,434
799,774
-
- 227,035
Total
$ 76,113,418
$ 2,580,135 $
1,559,674
$ 100,876
$ 100,876 $ 77,133,879
100
INTERNAL CONTROL AND COMPLIANCE
101
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102
PJ� h
� � � � Rehmann Robson
5070 North Highway AIA
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
February 10, 2017
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, 2016, and the related notes to the financial statements, which collectively comprise the City's
basic financial statements, and have issued our report thereon dated February 10, 2017.
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.
103
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.
LLC
104
%JR,ehmann
INDEPENDENT AUDITORS'
MANAGEMENT LETTER
February 10, 2017
Honorable Mayor and
Members of City Council
City of Sebastian
Sebastian, Florida
Report on the Financial Statements
Rehmann Robson
5070 North Highway AIA
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, 2016 and have issued our report thereon dated February 10, 2017.
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 February 10, 2017, 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.
105
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 218.50311). 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, 2016, 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, 2016. 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.
106
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.
LLC
107
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108
NR,ehmann
INDEPENDENT ACCOUNTANTS' REPORT
February 10, 2017
Honorable Mayor and
Members of City Council
City of Sebastian
Sebastian, Florida
Rehmann Robson
5070 North Highway AIA
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, 2016. 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, 2016.
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.
11 /
109
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110
STATISTICAL SECTION
111
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112
CITY OF SEBASTIAN, FLORIDA
0 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. 114
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. 126
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. 132
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. 138
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. 142
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.
113
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
2016 2015 2014 2013 2012
$ 35,886,087 $ 35,220,857 $ 35,210,526 $ 32,038,749 $ 31,500,173
5,209,372 4,997,724 5,115,627 5,839,440 6,192,777
3,615,777 3,467,014 3,330,400 4,577,440 3,607,228
$ 44,711,236 $ 43,685,595 $ 43,656,553 $ 42,455,629 $ 41,300,178
$ 11,989,666 $ 10,517,895 $ 10,439,804 $ 10,846,501 $ 11,181,823
(717,053) 67,779 (103,116) (306,497) (490,298)
$ 11,272,613 $ 10,585,674 $ 10,336,688 $ 10,540,004 $ 10,691,525
$ 47,875,753 $ 45,738,752 $ 45,650,330 $ 42,885,250 $ 42,681,996
5,209,372 4,997,724 5,115,627 5,839,440 6,192,777
2,898,724 3,534,793 3,227,284 4,270,943 3,116,930
$ 55,983,849 $ 54,271,269 $ 53,993,241 $ 52,995,633 $ 51,991,703
114
Table 1 - Unaudited
Fiscal Year
2011 2010 2009 2008 2007
$ 31,541,953 $ 28,938,587 $ 26,744,896 $ 24,133,550 $ 21,469,456
5,668,155 8,757,043 8,197,018 9,215,801 9,419,129
4,052,751 3,889,011 4,502,440 5,035,184 5,249,998
$ 41,262,859 $ 41,584,641 $ 39,444,354 $ 38,384,535 $ 36,138,583
$ 11,850,561 $ 11,389,704 $ 10,725,676 $ 9,111,251 $ 8,895,501
- - 98,320 570,149 570,890
(644,620) (342,340) 86,517 753,076 1,303,886
$ 11,205,941 $ 11,047,364 $ 10,910,513 $ 10,434,476 $ 10,770,277
$ 43,392,514 $ 40,328,291 $ 37,470,572 $ 33,244,801 $ 30,364,957
5,668,155 8,757,043 8,295,338 9,785,950 9,990,019
3,408,131 3,546,671 4,588,957 5,788,260 6,553,884
$ 52,468,800 $ 52,632,005 $ 50,354,867 $ 48,819,011 $ 46,908,860
115
CITY OF SEBASTIAN, FLORIDA
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year
2016 2015 2014 2013 2012
Expenses
Governmental activities:
General government
$ 3,285,607
$ 3,015,536
$ 2,923,398
$ 2,784,485
$ 2,640,677
Public safety
5,476,136
5,164,197
4,908,374
4,928,203
5,025,274
Physical environment
2,538,752
2,759,461
2,310,539
2,039,380
2,007,902
Transportation
1,861,946
2,024,814
1,828,569
1,845,429
1,800,432
Economic environment
364,675
194,630
247,891
155,214
170,960
Culture and recreation
1,191,488
1,293,246
1,229,369
1,232,345
1,239,512
Interest on debt
82,943
100,468
235,071
368,432
562,496
Total governmental activities expenses
14,801,547
14,552,352
13,683,211
13,353,488
13,447,253
Business -type activities:
Golf Course
1,584,214
1,409,829
1,406,770
1,377,039
1,394,731
Airport
1,197,549
1,038,361
1,031,464
1,146,905
1,166,588
Building
546,649
531,087
465,717
417,887
397,295
Total business -type activities expenses
3,328,412
2,979,277
2,903,951
2,941,831
2,958,614
Total primary government expenses $ 18,129,959 $ 17,531,629 $ 16,587,162 $ 16,295,319 $ 16,405,867
Program Revenue
Governmental activities:
Charges for services:
General government
$ 374,581
$ 372,255
$ 407,068
$ 314,158
$ 214,488
Public safety
98,446
80,763
76,132
67,297
66,474
Physical environment
1,049,735
1,087,642
1,073,015
1,101,864
876,693
Culture and recreation
53,959
67,940
67,371
70,982
66,954
Operating grants and contributions
323,101
345,937
186,295
332,627
187,333
Capital grants and contributions
809,932
994,546
739,785
770,123
791,265
Total governmental activities program revenue
2,709,754
2,949,083
2,549,666
2,657,051
2,203,207
Business -type activities:
Charges for services:
Golf Course
1,135,357
1,333,189
1,277,660
1,302,441
1,394,844
Airport
516,403
457,318
470,703
481,759
491,367
Building
810,069
712,620
700,751
706,964
419,705
Capital grants and contributions
841,668
702,154
235,215
230,868
150,083
Total business -type activities program revenue
3,303,497
3,205,281
2,684,329
2,722,032
2,455,999
Total primary government program revenue
6,013,251
6,154,364
5,233,995
5,379,083
4,659,206
Net(expense)revenue
Governmental activities
(12,091,793)
(11,603,269)
(11,133,545)
(10,696,437)
(11,244,046)
Business -type activities
(24,915)
226,004
(219,622)
(219,799)
(502,615)
Total primary government net
(expense) revenue
$ (12,116,708)
$ (11,377,265)
$ (11,353,167)
$ (10,916,236)
$ (11,746,661)
116
Table 2 - Unaudited
Fiscal Year
2011 2010 2009 2008 2007
$ 2,766,575
$ 3,309,381
$ 3,169,851
$ 3,375,178
$ 3,083,609
5,546,632
5,720,933
5,420,585
5,226,512
5,377,107
1,558,974
1,947,605
1,347,771
1,805,755
1,695,066
2,263,367
1,863,551
3,437,724
2,111,360
2,276,497
208,518
135,885
167,470
113,101
605,510
1,227,198
1,240,383
1,073,249
1,420,734
1,237,398
546,103
566,410
730,100
634,891
667,950
14,117,367
14,784,148
15,346,750
14,687,531
14,943,137
1,355,266
1,388,158
1,477,299
1,488,472
1,533,900
1,188,788
1,067,525
1,079,869
1,099,653
1,046,994
470,406
496,800
533,641
605,422
905,452
3,014,460
2,952,483
3,090,809
3,193,547
3,486,346
$ 17,131,827 $ 17,736,631 $ 18,437,559 $ 17,881,078 $ 18,429,483
$ 197,945 $
203,915
$ 220,073 $
353,836 $
422,897
92,350
118,368
95,606
85,009
92,853
868,059
881,338
908,829
903,285
891,021
61,353
62,046
66,540
83,378
85,945
196,534
210,050
228,002
786,016
192,676
838,242
3,178,618
1,865,174
835,607
1,014,481
2,254,483
4,654,335
3,384,224
3,047,131
2,699,873
1,382,421
1,335,647
1,406,956
1,438,233
1,652,288
485,229
468,698
438,485
523,989
344,813
401,021
356,264
358,947
347,189
408,875
900,340
904,853
1,356,914
494,098
500,428
3,169,011
3,065,462
3,561,302
2,803,509
2,906,404
5,423,494
7,719,797
6,945,526
5,850,640
5,606,277
(11,862,884)
(10,129,813)
(11,962,526)
(11,640,400)
(12,243,264)
154,551
112,979
470,493
(390,038)
(579,942)
$ (11,708,333) $ (10,016,834) $ (11,492,033) $ (12,030,438) $ (12,823,206)
continued...
117
CITY OF SEBASTIAN, FLORIDA
Changes in Net Position
Last Ten Fiscal Years
118
Fiscal Year
2016
2015
2014
2013
2012
General revenue and other changes in net position
Governmental Activities:
Property taxes, levied for general purposes $
3,942,048
$ 3,594,210
$ 3,248,113
$ 3,221,304 $
3,063,495
Sales and use taxes
5,762,921
5,555,270
5,320,051
5,123,046
4,852,413
Franchise fees
1,257,430
1,241,515
1,190,233
1,118,886
1,124,568
State shared revenues not restricted
to specific programs
2,466,546
2,365,137
2,208,700
2,063,450
1,934,733
Investment earnings
77,317
65,256
43,293
74,650
82,129
Miscellaneous
316,239
240,179
338,901
315,296
201,538
Transfers
(705,067)
2,988
(14,822)
(37,734)
22,489
Total governmental activities
13,117,434
13,064,555
12,334,469
11,878,898
11,281,365
Business -type activities:
Investment earnings
6,787
5,368
1,484
4,391
6,563
Miscellaneous
-
20,602
-
274
4,125
Transfers
705,067
(2,988)
14,822
37,734
(22,489)
Total business -type activities
711,854
22,982
16,306
42,399
(11,801)
Total primary government general revenue
13,829,288
13,087,537
12,350,775
11,921,297
11,269,564
Change in net position
Governmental activities
1,025,641
1,461,286
1,200,924
1,182,461
37,319
Business -type activities
686,939
248,986
(203,316)
(177,400)
(514,416)
Total primary government change in net
position $
1,712,580
$ 1,710,272
$ 997,608
$ 1,005,061 $
(477,097)
118
Fiscal Year
2011 2010 2009 2008 2007
$ 3,453,778
$ 4,164,128
$ 4,801,924
$ 5,149,047
$ 5,089,841
4,751,021
4,765,200
4,670,106
4,753,718
4,776,691
1,184,686
1,228,692
1,327,253
1,199,762
1,106,698
1,868,555
1,825,215
1,821,347
1,989,606
2,083,523
111,943
144,432
261,203
634,919
1,147,931
171,119
149,453
140,512
159,300
192,300
(7,020)
-
42,720
11,541,102
12,270,100
13,022,345
13,886,352
14,439,704
4,026 15,658 5,544
- 1,194 -
- 7,020 -
4,026 23,872 5,544
11,545,128
12,293,972
13,027,889
(321,782)
2,140,287
1,059,819
158,577
136,851
476,037
54,237 137,207
- (42,720)
54,237 94,487
13,940,589 14,534,191
2,245,952 2,196,440
(335,801) (485,455)
$ (163,205) $ 2,277,138 $ 1,535,856 $ 1,910,151 $ 1,710,985
concluded
119
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
Fiscal Year
2016 2015 2014
2013 2012
$ 227,651
$ 316,036
$ 369,329
$ 368,564
$ 370,450
46,262
38,544
7,969
28,632
-
-
-
-
-
2,861,708
10,840
8,692
7,129
7,020
35,707
5,526,675
5,289,322
5,348,905
5,065,242
1,734,307
5,811,428
5,652,594
5,733,332
5,469,458
5,002,172
996,778
928,758
1,390,073
1,323,838
1,289,693
4,193,653
4,181,787
3,756,950
4,647,950
4,371,826
977,868
815,688
625,007
589,364
719,686
(129,401)
(58,618)
(64,875)
-
-
6,038,898
5,867,615
5,707,155
6,561,152
6,381,205
$ 11,850,326
$ 11,520,209
$ 11,440,487
$ 12,030,610
$ 11,383,377
' 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.
120
Table 3 - Unaudited
6,243,155 8,757,043 9,387,418 13,218,187 13,621,051
$ 11,345,613 $ 14,369,442 $ 15,155,532 $ 19,526,369 $ 20,011,839
121
Fiscal Year
2011
2010
2009
2008
2007
$ 346,995 $
352,248
$ 357,696
$ 381,528
$ 368,609
2,949,139
3,063,585
3,083,463
3,502,560
3,742,617
21,911
31,656
1,983
33,453
19,055
1,784,413 z
2,164,910
2,324,972
2,390,641
2,260,507
5,102,458
5,612,399
5,768,114
6,308,182
6,390,788
1,494,779
859,463
830,029
771,927
694,506
4,748,376
7,897,580
8,557,389
' 12,446,260
12,926,545
6,243,155 8,757,043 9,387,418 13,218,187 13,621,051
$ 11,345,613 $ 14,369,442 $ 15,155,532 $ 19,526,369 $ 20,011,839
121
CITY OF SEBASTIAN, FLORIDA
Changes in Fund Balances For Governmental Funds
For the Last Ten Fiscal Years
To calculate the ratio, divide the total debt service expenditures (principal plus interest) by total noncapital
expenditures (the difference between the total expenditures and capitalized capital outlay expenditure).
122
Fiscal Year
2016
2015
2014
2013
2012
Revenues
Taxes
$ 10,326,654
$ 9,782,109
$ 9,123,879
$ 8,894,880
$ 8,465,990
Franchise fees
1,257,430
1,241,515
1,190,233
1,118,886
1,124,568
Licenses, fees and permits
136,614
147,219
138,564
45,500
22,431
Intergovernmental
2,709,066
2,742,950
2,373,695
2,411,395
2,088,038
Impact fees
163,800
281,450
168,350
169,000
58,500
Charges for services
1,391,495
1,397,395
1,431,101
1,462,522
1,158,075
Fines
73,059
63,035
54,140
60,190
57,575
Investment earnings
77,317
65,256
43,293
78,411
86,516
Contributions and donations
80,581
48,124
36,801
22,406
216,091
Otherrevenues
316,239
241,597
338,901
315,296
201,888
Total revenues
16,532,255
16,010,650
14,898,957
14,578,486
13,479,672
Expenditures
Current:
General government
3,053,554
2,717,049
2,575,605
2,447,893
2,410,345
Public safety
4,968,258
4,666,343
4,623,060
4,425,000
4,523,802
Physical environment
1,316,697
1,498,706
1,110,788
1,075,162
1,042,349
Transportation
1,168,919
1,187,871
1,165,004
1,158,945
1,208,411
Economic environment
331,589
161,545
144,612
122,730
138,531
Culture and recreation
849,789
893,394
888,795
847,781
876,502
Debt service:
Principal
1,935,000
1,567,000
2,306,000
1,307,000
3,321,000
Interest
92,907
108,678
413,995
393,447
472,399
Capital outlay
1,780,358
3,133,330
2,246,399
2,115,561
1,767,058
Total expenditures
15,497,071
15,933,916
15,474,258
13,893,519
15,760,397
Revenues over (under) expenditures
1,035,184
76,734
(575,301)
684,967
(2,280,725)
Other Financing Sources (Uses)
Issuance of long-term debt
-
-
-
-
2,296,000
Transfersin
3,694,279
4,989,726
3,903,204
3,598,949
3,694,765
Transfers out
(4,399,346)
(4,986,738)
(3,918,026)
(3,636,683)
(3,672,276)
Total other financing sources (uses)
(705,067)
2,988
(14,822)
(37,734)
2,318,489
Net change in fund balances
$ 330,117
$ 79,722
$ (590,123)
$ 647,233
$ 37,764
Debt service as a percentage of
noncapital expenditures (1)
14.8%
13.1%
20.6%
14.4%
27.1%
To calculate the ratio, divide the total debt service expenditures (principal plus interest) by total noncapital
expenditures (the difference between the total expenditures and capitalized capital outlay expenditure).
122
Table 4 - Unaudited
5,376,658
(5,376,658)
$ (3,023,829) $
13.5%
2,462,000
4,486,626 5,196,376
(4,493,646) (5,196,376)
2,454,980
(786,090) $ (4,370,837) $
19.3% 13.5%
5,679,896 5,158,296
(5,679,896) (5,115,576)
42,720
(485,469) $ (1,900,693)
14.0% 14.1%
123
Fiscal Year
2011
2010
2009
2008
2007
$ 8,762,729
$ 9,525,074
$ 10,065,806
$ 10,504,155
$ 10,554,617
1,184,686
1,228,692
1,327,253
1,199,762
1,106,698
1,121,967
1,154,739
1,186,161
1,209,617
1,271,102
23,646
33,182
29,151
163,471
186,875
81,534
90,948
88,938
65,246
71,314
2,249,447
4,572,550
3,270,854
2,674,761
2,463,628
42,250
26,000
13,975
32,825
56,875
-
-
3,849
-
-
103,795
228,216
250,914
647,312
1,062,043
224,823
169,039
176,430
461,553
244,629
13,794,877
17,028,440
16,413,331
16,958,702
17,017,781
2,539,211
2,699,289
2,976,896
3,087,789
2,999,652
5,030,708
4,938,147
4,926,714
4,677,618
4,700,447
1,166,309
1,210,823
1,448,067
1,368,593
1,301,719
1,217,521
1,405,310
1,696,254
1,545,045
1,733,697
188,918
129,352
167,470
113,101
80,279
903,836
977,780
1,148,408
1,079,379
975,087
1,203,000
2,142,190
1,218,995
1,326,182
1,284,418
521,152
577,593
706,093
611,554
643,305
4,048,051
6,189,026
6,495,271
3,634,910
5,242,590
16,818,706
20,269,510
20,784,168
17,444,171
18,961,194
(3,023,829)
(3,241,070)
(4,370,837)
(485,469)
(1,943,413)
5,376,658
(5,376,658)
$ (3,023,829) $
13.5%
2,462,000
4,486,626 5,196,376
(4,493,646) (5,196,376)
2,454,980
(786,090) $ (4,370,837) $
19.3% 13.5%
5,679,896 5,158,296
(5,679,896) (5,115,576)
42,720
(485,469) $ (1,900,693)
14.0% 14.1%
123
CITY OF SEBASTIAN, FLORIDA
Program Revenues by Function/Program
Last Ten Fiscal Years
Program Revenues
Governmental activities:
General government
Public safety
Physical environment
Transportation
Economic environment
Culture and recreation
Total governmental activities
Business -type activities:
Charges for services:
Golf Course
Airport
Building'
Total business -type activities
Total primary government
2013 2012
471,299 $ 230,550
233,309
228,392
Fiscal Year
2016
2015
2014
$ 479,395 $
534,524
$ 413,727 $
306,381
254,381
246,010
1,049,735
1,087,642
1,073,015
656,484
643,146
565,692
-
-
15,501
217,759
429,390
235,721
2,709,754
2,949,083
2,549,666
2013 2012
471,299 $ 230,550
233,309
228,392
1,101,864
876,693
560,713
560,055
-
13,998
289,866
293,519
2,657,051
2,203,207
1,135,357
1,333,189
1,277,660
1,302,441
1,394,892
1,358,071
1,159,472
705,918
712,627
641,455
810,069
712,620
700,751
706,964
426,215
3,303,497
3,205,281
2,684,329
2,722,032
2,462,562
$ 6,013,251 $ 6,154,364 $ 5,233,995 $ 5,379,083 $ 4,665,769
' 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.
124
Table 5 - Unaudited
Fiscal Year
2011 2010 2009 2008 2007
$ 243,039 $
209,144
$ 226,003 $
377,305 $
450,267
234,437
304,630
299,119
515,997
249,756
930,018
881,338
1,408,829
1,256,277
891,021
743,383
614,305
612,335
619,949
721,103
-
2,556,872
6,000
-
-
103,606
88,046
831,938
277,603
387,726
2,254,483
4,654,335
3,384,224
3,047,131
2,699,873
1,382,421
1,335,647
1,406,955
1,438,233
1,652,288
1,385,569
1,373,551
1,795,399
1,018,087
845,241
401,021
356,264
358,948
347,189
408,875
3,169,011
3,065,462
3,561,302
2,803,509
2,906,404
$ 5,423,494 $ 7,719,797 $ 6,945,526 $ 5,850,640 $ 5,606,277
125
CITY OF SEBASTIAN, FLORIDA
Table 6
- Unaudited
Tax Revenue by Source
Governmental Funds
For the Last Ten Fiscal Years
(Rate per $1,000 of assessed value)
Fiscal Year
Ended
Property
Public
Sales
Motor
Millage
Tax Year September 30
Taxes
Utility
Tax
Fuel
Total
Rate
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
2014 2015
3,594,210
2,638,711
2,916,092
633,096
9,782,109
3.8556
2015 2016
3,942,048
2,686,322
3,052,152
646,132
10,326,654
3.8556
126
CITY OF SEBASTIAN, FLORIDA
Direct and Overlapping Property Tax Rates
For the Last Ten Fiscal Years
(Rate per $1,000 of taxable value)
Table 7 - Unaudited
Note:
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.
' Millage includes General Fund, MSTUs, Emergency Services District and Land Bonds
2 All Special Taxing Districts
Source: Indian River County Property Appraiser's Office
127
City
Direct Rates
Overlapping Rates
County School Board
Tax
Fiscal
Basic
Debt
Total
Total
Basic
Debt
Year
Year
Rate
Service
Direct
County'
Rate
Service
Total
Other 2
2006
2007
3.0519
0.0000
3.0519
5.3661
7.1630
0.2800
7.4430
1.47940
2007
2008
2.9917
0.0000
2.9917
5.1485
7.2680
0.2700
7.5380
1.38160
2008
2009
3.3456
0.0000
3.3456
6.2861
6.7600
0.2800
7.0400
1.11204
2009
2010
3.3456
0.0000
3.3456
6.2693
7.2960
0.3000
7.5960
1.33570
2010
2011
3.3041
0.0000
3.3041
6.2860
7.9200
0.3000
8.2200
1.35050
2011
2012
3.3041
0.0000
3.3041
6.9590
7.8940
0.3500
8.2440
1.35460
2012
2013
3.7166
0.0000
3.7166
6.2572
7.9230
0.3900
8.3130
1.35460
2013
2014
3.7166
0.0000
3.7166
5.6207
8.1160
-
8.1160
1.71280
2014
2015
3.8556
0.0000
3.8556
5.6868
7.9950
7.9950
1.71260
2015
2016
3.8556
0.0000
3.8556
5.6868
7.9550
7.9550
1.69930
Note:
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.
' Millage includes General Fund, MSTUs, Emergency Services District and Land Bonds
2 All Special Taxing Districts
Source: Indian River County Property Appraiser's Office
127
CITY OF SEBASTIAN, FLORIDA
Actual and Estimated Value of Taxable Property
For the Last Ten Fiscal Years
Real Property
Tax
Fiscal
Assessed
Estimated
Year
Year
Value
Actual Value
2006
2007
$ 2,124,615,672
$ 2,655,769,590 $
2007
2008
2,054,408,055
2,568,010,069
2008
2009
1,933,934,630
2,417,418,288
2009
2010
1,650,311,449
2,062,889,311
2010
2011
1,392,267,434
1,740,334,293
2011
2012
1,273,059,710
1,591,324,639
2012
2013
1,210,328,690
1,512,910,863
2013
2014
1,267,035,970
1,583,794,963
2014
2015
1,363,105,220
1,703,881,525
2015
2016
1,447,311,640
1,809,139,550
Source: Indian River County Property Appraiser
80%
68.5%
70%
60%
50%
40%
30%
20%
10%
0%
2006 2007 2008 2009 2010 2011 2012 2013 2014
Fiscal Year
67.8%
Ratio of Taxable to Actual Value
Personal Property
Assessed
Value
55,913,696 $
64,899,942
62,476,508
56,920,223
55,234,086
48,922,492
47,410,545
53,045,209
55,646,868
59,305,756
54:2 55--9-°i
53.5% 52.6% 54.1% 55.0%
128
Estimated
Actual Value
JJ.Jo
2015
55,913,696
64,899,942
62,476,508
56,920,223
55,234,086
48,922,492
47, 410, 545
53,045,209
55,646,868
59,305,756
Table 8 - Unaudited
Less:
Total
Total
Ratio of
Tax -Exempt
Taxable
Estimated
Taxable to
Property
Value
Actual Value
Actual Value
$ 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
1,636,840,172
54.1%
451,939,888
966,812,200
1,759,528,393
55.0%
468,930,126
1,037,687,270
1,868,445,306
55.5%
129
CITY OF SEBASTIAN, FLORIDA Table 9 - Unaudited
Principal Property Tax Payers
Current Year and Nine Years Ago
Concentration of 2016 Taxpayers
92.81%
7.19%
■Top Ten Taxpayers
130
9A11 Other Taxpayers
2016 Fiscal Year
2007 Fiscal Year
Percentage
Percentage
of Total City
of Total City
Taxable
Taxable
Taxable
Taxable
Taxpayer
Value
Rank
Value
Value
Rank
Value
Florida Power ft Light (Utility/Electric)
$ 19,251,530
1
1.86 %
$ 19,621,470
1
1.06 %
Comcast of Florida, Inc. (Communications)
9,395,615
2
0.91
-
-
-
Wal-Mart Stores, Inc. (Retail)
8,550,680
3
0.82
15,159,607
2
0.82
Park Place Community, LLC (Rental/Retail)
6,951,394
4
0.67
7,814,264
9
0.42
BW US 1, Inc. (Commercial)
6,164,130
5
0.59
-
-
-
CR512 Shopping Center (Commercial)
5,970,530
6
0.58
8,184,770
8
0.44
CSMA BLT LLC (Commercial)
5,037,750
7
0.49
-
-
-
Bellsouth Communications (Utility/Telephone)
4,657,553
8
0.45
7,790,960
10
0.42
Hartwell Groves, Inc. (Agriculture)
4,558,540
9
0.44
-
-
-
Sebastian Inlet Marina Et Trading Co, Inc.
(Restaurant/ Hotel)
3,893,690
10
0.38
-
-
-
KB Homes Treasure Coast LLC (Construction)
-
-
-
13,128,500
3
0.71
Chance Holding LLC (Development)
11,151,290
4
0.60
Sebastian Crossing LLC (Construction)
8,797,890
5
0.47
Adams Homes of Northwest FL (Construction)
8,724,593
6
0.47
IPF/Sebastian LLC (Retail)
8,708,020
7
0.47
$ 74,431,412
7.19 %
$ 109,081,364
5.88 %
Total Taxable Value
$ 1,037,687,270
$ 1,858,210,615
Source: Indian River County Property Appraiser
Concentration of 2016 Taxpayers
92.81%
7.19%
■Top Ten Taxpayers
130
9A11 Other Taxpayers
CITY OF SEBASTIAN, FLORIDA
Property Tax Levies and Collections
For the Last Ten Fiscal Years
Table 10 - Unaudited
131
Collected within the
Fiscal Year of the Levy
Total Collections to Date
Taxes Levied
Delinquent and
Tax
Fiscal
for the
Percentage
Penalty Tax
Percentage
Year
Year
Fiscal Year
Amount of Levy
Collections
Amount
of Levy
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
2014
2015
3,422,716
3,295,549 96.28
2,241
3,297,790
96.35
2015
2016
3,738,202
3,530,235 94.44
72,789
3,603,024
96.38
Source: Indian
River County Property
Appraiser and Department of Revenue, Certification
of Final Taxable Value,
DR -422.
Total Tax Collections
20
18
16
14
c 12
10
8
6
4
-
J
t �
2
2007
2008 2009
2010 2011 2012 2013
2014 2015
2016
Fiscal Year
131
CITY OF SEBASTIAN, FLORIDA
Ratios of Outstanding Debt By Type
For the Last Ten Fiscal Years
Table 11 - Unaudited
Primary Government Debt
80.00
60.00
c
0
40.00
20.00
t
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Fiscal Year
132
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
2007
$
1,566,839
$ 9,145,000
$ 147,538
$ 4,815,000
$ 870,000
$ 16,544,377
22%
738
2008
1,333,197
8,445,000
-
4,570,000
590,000
14,938,197
19%
652
2009
1,089,203
7,725,000
4,315,000
300,000
13,429,203
21%
591
2010
2,414,000
6,980,000
4,055,000
-
13,449,000
20%
587
2011
2,246,000
6,215,000
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
4,600,000
3,215,000
9,914,000
13%
447
2014
1,896,000
2,730,000
2,982,000
7,608,000
8%
341
2015
1,689,000
1,722,000
2,630,000
6,041,000
6%
267
2016
1,478,000
353,000
2,275,000
4,106,000
(3)
193
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.
3.
Information
net yet available.
Primary Government Debt
80.00
60.00
c
0
40.00
20.00
t
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Fiscal Year
132
CITY OF SEBASTIAN, FLORIDA
Ratios of General Bonded Debt Outstanding
For the Last Ten Fiscal Years
Table 12 - Unaudited
Percentage of
General Bonded Debt Outstanding
Fiscal
Capita
Applicable
Legal
Year
Debt Limit
to Limit
Debt Margin
2007
$ 92,910,531
$ 15,674,377
$ 77,236,154
2008
89,250,574
14,348,197
74,902,377
2009
65,980,131
13,129,203
52,850,928
2010
57,457,057
13,449,000
44,008,057
2011
49,337,437
12,246,000
37,091,437
2012
43,872,903
11,221,000
32,651,903
2013
41,034,956
9,914,000
31,120,956
2014
44,250,493
7,608,000
36,642,493
2015
48,340,610
6,041,000
42,299,610
2016
51,884,364
4,106,000
47,778,364
Table 12 - Unaudited
Percentage of
Per
Debt Limit
Capita
16.87%
$ 3,444
16.08%
3,267
19.90%
2,326
23.41%
1,920
24.82%
1,691
25.58%
1,485
24.16%
1,403
17.19%
1,643
12.50%
1,870
7.91%
2,050
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
133
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
Legal Debt Margin Calculation for Fiscal Year 2016
Assessed value $1,506,617,396
Less: Exempt property (468,930,126)
1,037,687,270
Debt limit (5% of assessed value) 51,884,364
Debt applicable to limit:
General obligation bonds -
Revenue bonds/notes 4,106,000
Total net debt applicable to limit 4,106,000
Legal debt margin $ 47,778,364
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, 2016.
134
Fiscal Year
2016
2015
2014
2013
2012
$ 51,884,364
$ 48,340,610
$ 44,250,493
$ 41,034,956
$ 43,872,903
4,106,000
6,041,000
7,608,000
9,914,000
11,221,000
$ 47,778,364
$ 42,299,610
$ 36,642,493
$ 31,120,956
$ 32,651,903
7.91%
12.50%
17.19%
24.16%
25.58%
Legal Debt Margin Calculation for Fiscal Year 2016
Assessed value $1,506,617,396
Less: Exempt property (468,930,126)
1,037,687,270
Debt limit (5% of assessed value) 51,884,364
Debt applicable to limit:
General obligation bonds -
Revenue bonds/notes 4,106,000
Total net debt applicable to limit 4,106,000
Legal debt margin $ 47,778,364
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, 2016.
134
Table 13 - Unaudited
Fiscal Year
2011 2010 2009 2008 2007
$ 49,337,437 $ 57,457,057 $ 65,980,131 $ 89,250,274 $ 92,910,531
12,246,000 13,449,000 13,129,203 14,348,197 15,674,377
$ 37,091,437 $ 44,008,057 $ 52,850,928 $ 74,902,077 $ 77,236,154
24.82% 23.41% 19.90% 16.08% 16.87%
135
CITY OF SEBASTIAN, FLORIDA
Pledged -Revenue Coverage
For the Last Ten Fiscal Years
Coverage 3
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.
136
1.57
0.91
0.37
0.66
Recreational Facilities Improvement and Refunding Revenue Bonds, Series 2001
Debt Service
Less:
Net
Fiscal
Gross
Operating
Available
Year
Revenue'
Expenses7
Revenue
Principal
Interest
Total
2007
$ 1,701,171
$ 1,218,382
$ 482,789
$ 255,000
$ 51,590
$ 306,590
2008
1,455,749
1,174,169
281,580
270,000
41,090
311,090
2009
1,408,535
1,178,144
230,391
570,000
49,860
619,860
2010
1,341,555
1,129,651
211,904
300,000
21,700
321,700
2011
-
-
-
-
-
-
2012
2013
2014
2015
2016
Coverage 3
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.
136
1.57
0.91
0.37
0.66
13
Table 14 - Unaudited
Stormwater Utility Revenue Bonds, Series 2003
Debt Service
Gross
Revenues4
Principal
Interest
Total
Coverage 5
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
137
CITY OF SEBASTIAN, FLORIDA
State
Demographic and Economic
Statistics
Unemployment
Enrollment z
For the Last Ten Calendar
Years
5,117
7.0
4.4
4,710
Personal
Per
3,751
14.5
11.2
Income
Capita
Median
5,228
13.4
(thousands
Personal
Household
Year
Population
of dollars)'
Income'
Income'
2007
22,426
$ 7,552,059 $
56,852
$ 47,563
2008
22,924
7,976,086
58,528
48,267
2009
22,722
6,534,146
47,689
43,685 5
2010
22,922
6,737,286
48,276
47,525
2011
21,929
7,080,348
50,977
42,053
2012
21,995
7,429,653
52,855
42,638
2013
22,188
7,731,263
54,448
44,326
2014
22,296
9,139,902
63,140
47,548
2015
22,622
10,055,169
67,978
49,887
2016
23,137
4
4
4
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, Storm Grove Middle School and
Sebastian Charter Junior High School.
138
State
School
Unemployment
Unemployment
Enrollment z
Rate'
Rate
5,117
7.0
4.4
4,710
9.8
7.1
3,751
14.5
11.2
5,167
14.5
11.3
5,228
13.4
10.6
5,208
11.8
8.6
6,739
8.8
6.9
6,034
6.5
5.6
5,930
6.1
4.8
6,132
6.2
4.8
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, Storm Grove Middle School and
Sebastian Charter Junior High School.
138
Table 15 - Unaudited
Property
Total
Taxes
Taxable
Per
Property
Capita
Value 3
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
885,009,868
158.88
966,812,200
166.01
1,037,687,270
139
CITY OF SEBASTIAN, FLORIDA Table 16 - Unaudited
Principal Employers
Current Year and Nine Years Ago
140
2016
2007
Percentage of
Percentage of
Total County
Total County
Employer
Employees
Rank
Employment
Employees
Rank
Employment
School District of Indian River County (Government)
2,113
1
3.39 %
2,203
1
3.80
Indian River Medical Center (Healthcare)
1,753
2
2.82
1,300
3
2.24
Indian River County (Government)
1,328
3
2.13
1,614
2
2.78
Publix Supermarkets (Food/Beverage)
1,250
4
2.01
1,104
4
1.90
Wal-Mart (Retail)
693
5
1.11
449
9
0.77
Piper Aircraft, Inc. (Manufacturer)
650
6
1.04
1,045
5
1.80
Sebastian River Medical Center (Healthcare)
569
7
0.91
530
7
0.90
John's Island (Residential/ Resort)
526
8
0.85
446
10
0.77
City of Vero Beach (Government)
424
9
0.68
600
6
1.03
Medical Data Systems (Collection Agency)
400
10
0.64
171
-
0.29
Visiting Nurse Association (Healthcare)
399
11
0.64
297
16
0.51
Indian River Estates (Retirement/ Life care)
350
12
0.56
442
11
0.76
Disney Vero Beach (Resort Hotel)
300
13
0.48
315
14
0.54
CVS Warehouse/ Distribution (Distribution)
289
14
0.46
275
17
0.48
Grand Harbor Management (Developer)
281
15
0.45
310
15
0.53
Sun Ag, Inc. (Agricultural)
210
16
0.34
350
12
0.60
City of Sebastian (Government)
179
17
0.29
212
20
0.38
Captain Hirams (Restaurant/ Resort)
165
18
0.26
-
-
-
Flight Safety International (Education)
163
19
0.27
180
0.31
Vero Beach Hotel and Spa (Hotel)
118
20
0.20
-
-
Saint Edward's School (Education)
-
-
-
237
19
0.42
Dodgertown Complex (Sports)
255
18
0.44
Gracewood Fruit Packing (Agricultural)
330
13
0.58
Hale Indian River Groves (Agricultural)
450
8
0.78
12,160
19.53 %
13,115
22.61
Total Average County Employees
62,267
58,001
Source: Indian River County Community Development Report.
Note: Principal employers information available for Indian River
County Only.
140
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141
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 2016 2015 2014 2013 2012 2011
General government
City council
2.5
2.5
2.5
2.5
City manager
2.5
2.0
2.0
2.0
City clerk
3.0
5.0
5.0
3.0
City attorney
-
-
-
-
Administrative Services
4.0
5.5
5.5
5.0
Finance
-
-
-
-
Management information
2.0
2.0
2.0
3.0
Audio/visual
1.0
-
-
-
Human resources
-
-
-
-
Facilities maintenance
3.5
5.0
5.0
4.0
Community development
2.0
4.0
4.0
3.0
Public safety
Police
57.5
57.0
57.0
55.5
Building
5.0
5.0
5.0
5.0
Code enforcement
3.0
3.0
3.0
3.0
Transportation
Roads and drainage
11.0
10.0
10.0
10.0
Fleet management
3.5
3.5
3.5
3.5
Airport
1.0
1.0
1.0
2.0
Physical environment
Cemetery
2.0
2.0
2.0
2.0
Engineering
-
-
-
-
Stormwater utility
9.0
9.0
9.0
9.0
Culture and recreation
Parks and recreation
19.0
20.0
20.0
20.0
Golf course
10.0
10.0
10.0
10.0
Total 141.5 146.5 146.5 142.5
Source: City of Sebastian, Florida 2007-2016 Annual Budgets
Method: Using 1.0 for each full-time employee and 0.5 for each part-time and seasonal employee.
142
2.5 2.5
2.0 2.0
3.0 3.0
5.0 5.0
3.0 4.0
3.0 2.0
3.0 4.0
55.0 58.0
4.0 5.0
3.0 3.0
10.0 12.0
3.5 2.5
3.0 3.0
1.0 1.0
9.0 12.0
20.0 21.0
10.0 10.5
140.0 150.5
Table 17 - Unaudited
Full-time Equivalent Employees as of September 30
2010 2009 2008 2007
2.5
2.5
2.5
2.5
2.5
2.5
2.5
2.0
3.0
3.0
3.0
4.0
-
2.0
2.0
2.0
5.0
-
-
-
-
5.0
5.0
5.0
3.0
3.0
3.0
3.0
-
2.0
3.0
3.0
2.0
2.0
2.0
2.0
5.0
5.0
5.0
5.0
58.0
59.0
58.0
57.0
5.0
5.0
6.0
11.0
2.5
2.5
2.5
3.0
12.0
10.0
10.0
11.5
3.5
3.5
2.5
3.5
3.0
3.0
3.0
3.0
2.0
2.0
2.0
2.0
-
7.0
7.0
9.0
12.0
11.0
13.0
13.0
23.0
23.5
23.5
23.5
10.5
9.0
9.0
12.5
154.5
162.5
164.5
177.5
143
CITY OF SEBASTIAN, FLORIDA
Operating Indicators By Function/Program
For the Last Ten Fiscal Years
Fiscal Year
Function 2016 2015 2014 2013
General government
Number of annexations approved 2
Acres of annexed property - - - 4.00
Purchase orders issued 328 254 242 233
Public Safety
Police
Physical arrests
258
287
347
440
Traffic violations
3,065
3,725
4,587
4,491
Parking violations
73
60
29
80
Building
Construction permits issued
191
142
175
170
Estimated value of construction (in millions) $
43.4 $
40.6 $
40.0 $
35.9 $
Transportation
Road maintenance (man hours)
250
200
200
300
Asphalt for road maintenance (tons)
20
10
20
30
Physical environment
Cemetery
Cemetery internments
61
71
67
65
Grave deeds sold
39
43
47
38
Stormwater
Swales maintained (miles)
300
300
280
280
Ditches maintained (miles)
75
75
50
50
Road crossings maintained
68
68
68
50
Culture and recreation
Program participants
7,280
7,647
7,571
8,113
Number of discount cards
631
653
653
710
Number of golf course memberships
127
93
84
86
Average daily golf revenue $
3,100 $
3,653 $
3,500 $
3,569 $
Sources: City of Sebastian Police Department, Growth Management, Public Works, Golf Course and Building Department.
' New commercial and residential only.
144
2012
201
441
4,319
167
66
14.7
500
50
65
38
280
50
50
9,713
786
88
3,822
Table 18 - Unaudited
145
Fiscal Year
2011
2010
2009
2008
2007
1
3
1
-
5.90
26.00
-
3.87
228
216
288
254
284
500
487
543
662
697
5,941
4,083
4,849
4,418
7,221
242
87
50
208
289
51
36
23
55
104
10.2 $
6.6 $
5.1 $
13.3
$ 22.5
700
1,264
600
538
888
50
103
328
358
210
54
66
74
68
69
34
33
39
46
49
280
280
280
280
280
50
50
50
50
50
40
40
30
30
30
8,649
11,701
13,465
12,910
14,177
735
844
879
950
1,004
94
96
95
97
108
3,787 $
3,673 $
4,000 $
3,988
$ 4,661
145
CITY OF SEBASTIAN, FLORIDA
Capital Asset Statistics By Function/Program
For the Last Ten Fiscal Years
Sources: City of Sebastian Administrative Services Department and Park and Recreation Divisio
' This number represents actual unmetered street lights in the City (source: Florida Power &t Light - January billing
146
Fiscal Year
Function
2016
2015
2014
2013
2012
General Government
Square footage occupiec
21,500
21,500
21,500
21,500
21,500
Departmental vehicles
4
5
5
6
1
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
70
66
62
61
66
Building inspector vehicles
4
4
3
3
3
Transportation
Streets (miles)
156
156
156
156
156
Streetlights'
1,085
1,085
1,085
1,080
1,228
Airport vehicles
4
3
1
1
1
Public service vehicles
12
12
15
17
17
Physical environment
Public service vehicles
17
17
10
10
9
Culture and recreation
Parks vehicles
6
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
12
12
9
12
13
Golf course vehicles
-
-
1
1
1
Sources: City of Sebastian Administrative Services Department and Park and Recreation Divisio
' This number represents actual unmetered street lights in the City (source: Florida Power &t Light - January billing
146
Table 19 - Unaudited
147
Fiscal Year
2011
2010
2009
2008
2007
21,500
21,500
21,500
21,500
21,500
3
3
3
3
3
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
67
63
63
62
57
3
3
4
4
5
156
156
156
156
156
1,236
1,230
1,240
1,229
1,309
1
1
1
1
1
19
22
18
23
21
9
15
7
11
10
18
18
18
15
14
2
2
2
2
2
315.01
315.01
233.79
233.79
229.37
4,859
4,859
4,859
4,859
4,859
14
13
13
13
12
1
1
1
1
1
147