HomeMy WebLinkAbout03-28-2018 Addendum CAFRCITY OF SEBASTIAN, FLORIDA
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HOME OF PELICAN ISLAND
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended September 30, 2017
CITY COUNCIL
Bob McParlan Andrea Coy
Mayor Vice -Mayor
Ed Dodd
Council Member
Jim Hill Linda Kinchen
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
36
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds
38
Reconciliation of Net Changes in Fund Balance of Governmental
Funds to Change in Net Position of Governmental Activities
40
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual:
General Fund
41
Discretionary Sales Tax Special Revenue Fund
42
Riverfront Redevelopment Special Revenue Fund
43
Statement of Net Position - Proprietary Funds
44
Statement of Revenues, Expenses and Changes in Fund
Net Position - Proprietary Funds
45
Statement of Cash Flows - Proprietary Funds
46
Statement of Fiduciary Net Position
48
Statement of Changes in Fiduciary Net Position
49
Notes to Financial Statements
51
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:
94
Schedule of Changes in Net Pension Liability and Related Ratios
88
Schedule of the Net Pension Liability
89
Schedule of Investment Returns
89
Schedule of Contributions
90
Other Postemployment Benefits Plan:
98
Schedule of Funding Progress
91
Schedule of Employer Contributions
91
Coastal Florida Public Employees Association Pension Plan:
101
Schedule of Employer Contributions
92
Combining and Individual Fund Financial Statements and Schedules:
Nonmajor Governmental Funds:
Combining Balance Sheet
94
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances
96
Schedule of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual:
Local Option Gas Tax Special Revenue Fund
98
Parking In -Lieu -Of Special Revenue Fund
99
Recreation Impact Fee Special Revenue Fund
100
Stormwater Utility Special Revenue Fund
101
Law Enforcement Forfeiture Special Revenue Fund
102
Discretionary Sales Surtax Revenue Bonds 2013 Debt Service Fund
103
Stormwater Utility Revenue Bonds Debt Service Fund
104
Agency Fund:
Combining Statement of Changes in Assets and Liabilities 106
Other:
Capital Assets used in the Operations of Governmental Funds:
Comparative Schedule by Source 108
Schedule by Function and Activity 109
Schedule of Changes by Function and Activity 110
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
Direct and Overlapping Property Tax Rates
127
Actual and Estimated Value of Taxable Property
128
Principal Property Taxpayers
130
Property Tax Levies and Collections
131
Debt Capacity Information
Ratios of Outstanding Debt by Type
132
Ratios of General Bonded Debt Outstanding
133
Legal Debt Margin Information
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
Internal Control and Compliance
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 Governmental Auditing Standards 151
Independent Auditors' Management Letter 153
Independent Accountants' Report 157
INTRODUCTORY SECTION
CITY OF SEBASTIAN, FLORIDA
CITY OFFICIALS
For the Year Ended September 30, 2017
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
2
Sally A. Maio, MMC
City Clerk
Kenneth W. Killgore
Administrative Services Director
Tim Walker
Public Works Director
Greg Gardner
Golf Course Director
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HOME OF PELICAN ISLAND
March 20, 2018
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, 2017, as prepared by the City's Administrative Services department.
State law requires that every general-purpose local government publish a complete set of audited
financial statements. This report is published to fulfill that requirement for the fiscal year ended
September 30, 2017.
Management assumes full responsibility for the completeness and reliability of the information
contained in this report, based on a comprehensive framework of internal control that is established
for this purpose. Because the cost of internal control should not exceed anticipated benefits, the
objective is to provide reasonable, rather than absolute, assurance that the financial statements are
free of any material misstatements.
Chapter 218.39, Florida Statutes requires that the financial statements of the City of Sebastian be
audited by a certified public accountant selected by the City Council. The City's independent Certified
Public Accountants, Rehmann Robson, has issued an unmodified ("clean') opinion on the City of
Sebastian's financial statements for the year ended September 30, 2017. The independent auditors'
report is located on page 13, 14 and 15. Management's discussion and analysis (MDEtA) immediately
follows the independent auditors' report and provides a narrative introduction, overview, and analysis
of the basic financial statements. The MDEtA complements this letter of transmittal and should be read
in conjunction with it.
As the recipient of federal and state financial assistance, the City is also responsible for the
establishment of an adequate internal control structure to help ensure compliance with applicable
laws and regulations related to those programs. The City is required to undergo an annual single audit
perfomed under the provisions of 2 CFR Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards and Chapter 10.550, Rules of the Florida
Auditor General . The City did not meet the threshold to require a federal single audit for the current
year. Information related to the state single audit, including the schedule of expenditures of state
financial assistance and auditors' reports on the internal control and compliance with applicable laws
and regulations are included in a separate report, under separate cover.
3
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 24,192 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 Community Redevelopment Agency
recorded in the Riverfront Redevelopment Fund and 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
2017, the Florida Research Et Economic Database reported an improved unemployment rate of 4.3%,
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.
4
The largest major industry sector was Health Care and Social Assistance with 18.6% of the
employment, followed by Retail Trade with 16.9% of the employment and Accommodation and food
Services with 11.3% 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 has 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.
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. In November 2016, subsequent to this report, the voters once again extended the Surtax for
another fifteen -year period. This Infrastructure Sales Surtax is essential in providing 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 a reduced rate of 3.80000 for fiscal year 2017. However, the City had an
increase in ad valorem values due to improvements and additions. Construction activity resulted in 147
permits being issued for new construction in fiscal year 2017 with a value of $37.2 million compared to
191 permits being issued for new construction in fiscal year 2016 with a value of $43.4 million. These
levels can be primarily attributed to the improved outlook for the housing market.
General Fund unassigned fund balance and amounts committed by the financial policies resolution
based on 30% of the general fund expenditures budget, were 35% of the general fund expenditures
budget. The City has been steadfast and refused to spend down these balances because the City
understands reliance on accumulated fund balances to fund operating expenditures is not a prudent
fiscal strategy. To this end, the budget for fiscal year 2017 was balanced without a reduction of fund
balances.
Major Initiatives
Administration
The City experienced substantial impacts from Hurricane Matthew and expended countless hours in
compiling and submitting funding request to FEMA and the State during the year. A major part of the
requested reimbursements related to rebuilding four of the City's fishing piers that were substantially
damaged from the storm. Those items added to the usual administrative effort required to manage
such projects by the need to adhere to permitting and environmental concerns, while also complying
with FEMA and State stipulations.
Administrative initiatives included initiating a competitive process to select an automated payroll
system and have it implemented before year end. This system was expected to reduce the time
required to submit employee time records and automate human resource activities, such as
orientation briefings and performance evaluations. In other areas, efforts were made to use
technology advances, including upgrades to computer servers, improvements to the network and
acquisition of better audio and visual equipment.
Stormwater
The main focus of stormwater activities the past fiscal year has continued to be on the City's
Stormwater Management Program, which includes capital projects, maintenance, citizen response and
education, and forward planning. The City continued an emphasis on mowing and clearing swales and
ditches. This is expected to be critical to insuring a smooth flow of stormwater. City crews are now
concentrated on the task of keeping those areas clear of vegetation. Operation and maintenance
activities are accounted for in General Fund, with about 75% 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 £t Transportation
The City continues working on transportation improvements. Almost $700,000 was spent during 2017
from discretionary sales taxes and local option gas taxes for roadway reconstruction and repaving.
Other projects planned for future years include repairs to sidewalks, plus additional street repaving
that will be funded by local option gas taxes and major road reconstruction by discretionary sales
taxes. In addition, discretionary sales taxes will be used to replace heavy construction equipment
needed for maintaining City rights-of-way and transportation infrastructure.
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 Master Plan serves as the guiding document for airport planning and work has begun to update this
important document. 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 upgrading the taxiways and 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.
N
Culture & Recreation
The City continued efforts to promote the "working waterfront" concept on the riverfront properties
that were purchased with grant funding, with City matching funds provided by discretionary sales
taxes. Additional grants were secured for installation of a baffle box, drainage improvements and
other enhancements. The City also put emphasis on refurbishing the playground equipment at all the
parks to insure it was safe for children to use. 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 a State grant to
allow the Golf Course to totally rehabilitate the Golf Course Clubhouse Restaurant in conjunction with
the competitive selection of a new tenant to operate it.
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, 2016. 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,
f
Joseph Griffin
City Manager
Kenneth W. Killgore
Administrative Services Director
7
CITY OF SEBASTIAN, FLORIDA
Organizational Chart
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CITY OF SEBASTIAN, FLORIDA
GFOA Certificate of Achievement
Grovernment Finance Officers Association
Certificate of
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Reporting
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City of Sebastian
Florida
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Finmeial Report
for the Fiscal Year Ended
September 30, 2416
Exeoutive Diremor/CEO
9
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10
FINANCIAL SECTION
11
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12
�djR,ehmann
INDEPENDENT AUDITORS' REPORT
March 20, 2018
Honorable Mayor and
Members of City Council
City of 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, 2017, and the related
notes to the financial statements, which collectively comprise the City's basic financial statements as
listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Independent Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of
the financial statements.
13
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, the financial statements referred to previously present fairly, in all material respects,
the respective financial position of the governmental activities, the business -type activities, each
major fund, and the aggregate remaining fund information of the City of Sebastian, Florida as of
September 30, 2017, 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 March 20,
2018, 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 (MDBtA) 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 2017 by $56,186,650 (net position). Of this amount, $227,112 (unrestricted net position)
may be used to meet the City's on-going obligations to citizens and creditors.
The City's total net position from governmental activities decreased by $900,579 and from business -type activities
increased by $1,103,380. Net position was decreased in governmental activities as a result of greater expenditures on
public safety and physical environment. Net position for business -type activities increased due to capital grants
received at the Airport.
Governmental funds reported a combined ending fund balance of $10,548,397, a decrease of $1,301,929 from the
prior year. Almost 39% of this amount, $4,062,905 is unassigned and available for spending, a $1,334,369 decrease
from fiscal year 2016, due to General Fund outlays related to Hurricane Matthew.
The Golf Course Fund reported an increase in the deficit in unrestricted net position, due to an operating loss, largely
resulting from lower operating revenues attributed to weather and construction activities. The Airport Fund reported
an improvement in the deficit in unrestricted net position resulting from revenues recorded from capital
contributions. The Building Enterprise fund reported an increase in unrestricted net position, as a result of an
improved levels of construction activity. In total, 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, Riverfront Redevelopment Fund, General Capital Projects, and
Transportation Improvements, all of which are considered to be major funds. Data from the other ten governmental funds
are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds
is provided in the form of combining statements and schedules elsewhere in this report.
The City adopts an annual appropriated budget for its General Fund and special revenue funds. Budgetary comparison
statements 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
$56,186,650 at the close of the most recent fiscal year.
Current and other assets
Capital assets, net
Total assets
Deferred outflows of
resources
Long-term debt outstanding
Other liabilities
Total liabilities
Deferred inflows of
resources
Net position
Net investment in
capital assets
Restricted
Unrestricted
Total net position
Governmental Activities
2017 2016
$11,632,834 $12,603,239
40,636,026 39,992,087
52,268,860 52,595,326
823,292 1,050,060
4,661,794
5,397,721
4,390,126
3,392,050
9,051,920
8,789,771
229,575
144,379
37,461,026
5,113,543
1,236,088
$ 43,810,657
35,886,087
5,209,372
3,615,777
$ 44,711,236
Net Position
Business -type Activities
2017 2016
$ (527,648) $ (229,839)
13,639,422 12,151,911
13,111,774 11,922,072
488,219
373,094
247,562
276,365
735,781
649,459
13,384,969
(1,008,976)
$ 12,375,993
11,989,666
(717,053)
$11,272,613
Total
2017 2016
$11,105,186 $12,373,400
54,275,448 52,143,998
65,380,634 64,517,398
823,292 1,050,060
5,150,013
5,770,815
4,637,688
3,668,415
9,787,701
9,439,230
229,575
144,379
50,845,995
5,113,543
227,112
$56,186,650
47,875,753
5,209,372
2,898,724
$ 55,983,849
A substantial portion of the City's net position, $50,845,995 (90.5 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 $5,113,543 (9.1 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
$227,112 (.4 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 that have continued to be made in capital
assets.
20
CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
21
Change in Net Position
Governmental Activities
Business -type Activities
Total
2017
2016
2017
2016
2017
2016
Revenues
Program revenues:
Charges for services
$ 1,557,250
$ 1,576,721
$ 2,306,210
$ 2,461,829
$ 3,863,460
$ 4,038,550
Operating grants
250,292
323,101
116,055
-
366,347
323,101
Capital grants
947,274
809,932
1,566,737
841,668
2,514,011
1,651,600
General revenues:
Property taxes
4,147,115
3,942,048
-
-
4,147,115
3,942,048
Other taxes
5,945,386
5,762,921
5,945,386
5,762,921
Intergovernmental
2,616,522
2,466,546
2,616,522
2,466,546
Other
1,697,286
1,650,986
10,787
6,787
1,708,073
1,657,773
Total revenues
17,161,125
16,532,255
3,999,789
3,310,284
21,160,914
19,842,539
Expenses
General government
3,379,369
3,285,607
-
-
3,379,369
3,285,607
Public safety
6,549,037
5,476,136
6,549,037
5,476,136
Physical environment
3,769,377
2,538,752
3,769,377
2,538,752
Transportation
2,279,149
1,861,946
2,279,149
1,861,946
Economic environment
106,577
364,675
106,577
364,675
Cultural and recreation
1,326,245
1,191,488
1,326,245
1,191,488
Interest and fiscal
charges
63,141
82,943
63,141
82,943
Golf course
-
-
1,537,332
1,584,214
1,537,332
1,584,214
Airport
1,361,134
1,197,549
1,361,134
1,197,549
Building
586,752
546,649
586,752
546,649
Total expenses
17,472,895
14,801,547
3,485,218
3,328,412
20,958,113
18,129,959
Change in net position,
before transfers
(311,770)
1,730,708
514,571
(18,128)
202,801
1,712,580
Transfers
(588,809)
(705,067)
588,809
705,067
-
-
Change in net position
(900,579)
1,025,641
1,103,380
686,939
202,801
1,712,580
Net position, beginning
of year
44,711,236
43,685,595
11,272,613
10,585,674
55,983,849
54,271,269
Net position, end of year
$43,810,657
$44,711,236
$ 12,375,993
$11,272,613
$56,186,650
$55,983,849
The City's net position increased
by $202,801 during the current fiscal year.
The primary reason for the reduction in net
position for governmental activities is related to outlays related
to Hurricane Matthew. 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 decreased the City's net position by $900,579 as compared to the prior
year increase of $1,025,641. Key elements of this decrease are as follows:
An increase in expenses of $2,671,348 primarily attributable to increased payroll costs.
An increase in general revenues of $583,808, mostly from sales taxes and intergovernmental receipts.
An increase in program revenues of $45,062 due to higher amounts of capital grants received.
A change in transfers of ($116,258) caused by less transfers to the enterprise funds.
7,000,000 -
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
Expenditures and Program Revenues - Governmental Activities
General Public safety Physical
government environment
Intergovern
15%
Other tax
42%
■ Expenditures
■ Program Revenues
Lo
Transportation Economic Cultural and Interest and
environment recreation fiscal
Revenues by Source - Governmental Activities
Other Charges for services
3%� 9%
22
grants
I grants
i%
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 $1,103,380. The key elements of
this increase are as follows:
An increase in expenses of $156,806 primarily in salaries, wages and employee benefits.
An increase in general revenues of $4,000 due to rents and other revenues.
A decrease in charges for services of $39,564 from a reduction in building permits and golf course fees.
An increase in capital grants of $725,069 resulting from grants to the airport.
A change in transfers in of ($116,258) from less construction of the golf course that was funded by other funds.
21500,000 -
2,000,000
1,500,000
1,000,000
500,000
Capital grant
39%
Expenses and Program Revenues - Business -type Activities
Golf course Airport
■ Expenses
■ Program Revenues
Revenues by Source - Business -type Activities
23
Building
Charges for services
58%
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
$10,548,397, a decrease of $1,301,929 from the prior year. Of this amount, 39 percent ($4,062,905) 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 $4,089,275 while total fund balance amounted to $4,507,146. 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 36.4 percent of total General Fund expenditures, while total fund balance represents
40.2 percent of that same amount.
The fund balance of the City's General Fund decreased by $1,304,282 during the current fiscal year, as compared to the
$158,834 increase reported in the prior fiscal year. Key factors in this change are as follows:
Due to additions to taxable property values, property tax revenues increased by $201,850
Charges for services decreased by $14,015
Intergovernmental increased by $153,183
Public utility taxes increased by $22,658
Franchise fees increased by $13,973
All other revenues decreased by $17,374
Transfers in from other funds decreased by $12,184
Transfers out from other funds decreased by $1,829,890
Expenditures decreased by $18,683
The General Fund originally budgeted for no changes in the fund balance. The actual decrease in fund balance was
$1,304,282. Significant changes in budgetary variances are as follows:
Property tax revenues had a positive budgetary variance of $9,349, 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 favorable budgetary variance of $412,435, which was just a 3.6% difference
from the originally budgeted total.
Transfers out had the largest budgetary variance due to transfers made to cover the unanticipated expenditures on
fishing piers and debris removal caused by Hurricane Matthew.
The Discretionary Sales Tax revenue special revenue fund has a total fund balance $2,643,877, a decrease from the
$2,709,105 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 $540,748 in fund balance, as a result of the transfers out for
pending construction projects being less than budgeted.
The General Capital Projects Fund had not been fully reimbursed for expenditures by year end, which resulted in a
$20,550 negative fund balance.
The Transportation Improvements Fund received reimbursement for expenditures incurred the prior year, which resolved
the $46,493 negative fund balance that had been recorded.
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 $22,377, while the unrestricted net
position (deficit) amounted to ($1,681,678). Compared to the prior year in the same category, net position decreased from
the prior year and the unrestricted net position (deficit) changed from ($1,095,926) to ($1,681,678). 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 $10,982,436, while the unrestricted
net position (deficit) amounted to ($630,048). Compared to the prior year in the same category, net position has increased
by $1,143,781 while the unrestricted net position (deficit) has changed from ($708,735) to ($630,048). 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 $1,371,180. This is an increase of
$200,245 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 four 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 new allocations funded by transfers from the Equipment Et Facilities REtR Reserve and the
fourth includes project transfers to cancel or 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
$4,475 to record reimbursement for damaged Airport perimeter gates.
$500 to reflect donation from the Senior Activity Center toward computer accessories.
$132,925 to apply additional funds to street reconstruction.
$34,107 to reallocate funds budgeted for Senior Center Restrooms project the prior year.
$12,000 to reflect donation from the Greer Trust.
$100,000 to reflect acceptance of Indian River Lagoon Council Grant for Septic -to -Sewer program.
$72,000 creates project for the purchase of 190 Sebastian Boulevard property.
$800 increases amounts budgeted for the Golf Course Regrassing project.
$130,000 allocates Recreation Impact Fees to renovate the Barber Street Complex Football Field Restrooms.
$9,374 increases loan to Golf Course from Building Fund for materials needed for Greens Rebuilding project.
$76,000 increases grant and DST Fund match to add environmental study to Airport Master Plan project.
$79,007 allocates additional funds to cover actual bid amount for Police Evidence Building project.
$9,041 decreases the project for Painting City Hall to actual bid amount.
$49,134 allocates additional funds to cover actual bid amount for the Columbariums project.
25
CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
Amendments (Concluded)
$129,433 allocates additional funds to cover actual bid amount for the Working Waterfront Restrooms project.
$96,454 applies portion of Building Fund loan for Golf Course improvements to Rebuilding Greens project.
$68,592 applies portion of Building Fund loan for Golf Course improvements to Cart Path Repair Project.
$26,838 to apply proceeds from vehicle sales to replace the City Engineer's vehicle.
$19,600 to use Recreation Impact Fees to do Recreation Element of the Comprehensive Plan.
$22,000 to apply additional discretionary sales tax receipts to Stonecrop Drainage Design project.
$7,990 to reflect JAG Grant for Police equipment.
$1,000 to reflect donation from the Senior Center to the Barber Street Restroom project.
$100,000 to allocate DST Funds to cover replacement of Golf Clubhouse flooring, range hood, restrooms, etc.
$1,230 to record acquisition of a vehicle for Police Department by a final judgement of forfeiture.
$6,708 to reflect JAG Grant revenue received to purchase bulletproof vest.
$168,628 to record receipt of State Shared Revenue contributed to the Police Pension Plan.
$4,999 to reflect Safety Grant by Insurance Carrier to purchase AED units and supplies.
$5,200 to record recovery of the cost of demolishing a condemned structure.
$47,928 to reflect Indian River Lagoon Council Grant and use of Lagoon funds to create Oyster Bags project.
$8,141 to reflect JAG Grant for purchase of Police Department equipment.
$10,899 to create a project to account for the Chamber of Commerce Sign.
$38,197 to record adjustment to Tulip Street Grant to cover additional project costs.
$100,000 to reflect Grant for Restaurant Upgrades and use of additional DST monies for renovations.
$135,000 to allocate DST Funds toward additional Restaurant renovations.
Operating Budget Transfers
$26,226 to adjust departmental charges to properly code computer license charges.
$135,179 adjustments within various department accounts to properly code expenditures.
$81,382 to adjust City Manager and Administrative Services budgets for transfer of Procurement Manager.
$105,899 adjustments with Police Department budgets for transfer of Police Commander.
$5,527 adjustment to reflect interest due on interfund loan to Golf Course from Building Fund.
$14,805 to adjust accounts within Public Works to hire an Engineering Intern for the summer.
R&R Reserve Allocations
$32,247 to use Equipment Et Facilities REtR Reserve for City Council Chambers Air Conditioner.
$94,521 to reduce Equipment Et Facilities REtR Reserve to a $275,000 maximum.
$33,495 to use Equipment Et Facilities REtR Reserve to replace the Construction Inspector's vehicle.
$44,420 to use Equipment Et Facilities REtR Reserve to replace Police Air Conditioning Unit.
$20,683 to use Equipment Et Facilities REtR Reserve to replace various small equipment items.
$18,871 to use Equipment Et Facilities REtR Reserve for playground components and irrigation well.
$28,605 to use Equipment Et Facilities REtR Reserve for replacing a Police Department air conditioner.
$1,874 to use Equipment Et Facilities REtR Reserve for repairing the Golf Course irrigation pump's intake line.
$33,000 to use Equipment Et Facilities REtR Reserve to replace Riverview Park Playground.
$5,950 to use Equipment Et Facilities REtR Reserve to replace Pro Shop Air Conditioner.
$22,514 to use Equipment Et Facilities REtR Reserve to replace Airport truck.
$9,427 to use Equipment Et Facilities REtR Reserve to replace air conditioner unit in the Airport vault.
$71,583 to use Equipment Et Facilities REtR Reserve to repair Clubhouse restrooms, hallway and doors.
Project Budget Transfers
$46,726 reallocates remaining balances of amounts budgeted for sign grants.
$62,440 combined unspent balances for computer upgrades into the current year project.
$84,000 cancels PW Compound projects to enable purchase of additional dump truck.
$106,000 allocates funds to proceed with Airport AWAS II project.
$44,703 reallocates funding for Indian River Drive Angled Parking budgeted the prior year.
$21,346 applies savings from other projects to overages on CavCorp Parking and Police Equipment projects.
$99,414 reallocates unexpended balance of funds budgeted toward All Aboard Florida issues.
$164,500 uses funds for Working Waterfront Phase 3 project to create Oyster Pointe Baffle Box project.
$49,134 changes Columbariums to Trust Fund and applies those DST funds to Police Evidence Building.
$990,472 closes out a large number of completed, cancelled of deferred projects.
26
CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
During the fiscal year, total General Fund actual expenditures were $412,435 less than final amended budgetary
estimates. The overall variance on revenues and expenditures resulted in an unexpected $1,304,282 reduction to existing
fund balances. This was due to the amounts that were transferred out to cover the expenditures resulting from Hurricane
Matthew.
Capital Asset and Debt Administration
Capital Assets. At the end of fiscal year 2017, the City had $54,275,448 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 $2,131,450, or 4.1%, 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:
A decrease in buildings mainly due to the amount of depreciation expense for the fiscal year.
A decrease in improvements mainly due to the amount of depreciation.
An increase in equipment and infrastructure mainly due to the additional of capital assets.
An increase in construction in progress due to the construction underway on the Police Evidence Garage and Working
Waterfront Restrooms.
Business -type activities had the following major changes during the fiscal year:
An increase in buildings due to the construction of Hangar "C".
A decrease in improvements due to the amount of depreciation expense for the fiscal year.
An increase in equipment due to acquiring the automated weather system.
A decrease in infrastructure mainly due to the amount of depreciation.
A decrease in construction in progress due to the completion of projects.
Long -Term Debt. At the end of the current fiscal year, the City had total long-term debt outstanding of $5,150,013. Of
this amount, $3,175,000 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.
27
Capital Assets (Net of Depreciation)
Governmental Activities
Business -type
Activities
Total
2017
2016
2017
2016
2017
2016
Land
$ 8,391,050
$ 8,319,588
$ 19,436
$ 19,436
$ 8,410,486
$ 8,339,024
Buildings
7,614,058
7,755,514
7,254,214
4,923,679
14,868,272
12,679,193
Improvements
2,641,453
2,950,753
1,511,220
1,590,742
4,152,673
4,541,495
Equipment
2,539,466
2,083,959
620,309
489,079
3,159,775
2,573,038
Infrastructure
19,068,110
18,655,238
3,914,198
4,048,111
22,982,308
22,703,349
Construction in progress
381,889
227,035
320,045
1,080,864
701,934
1,307,899
Total capital assets, net
$40,636,026
$39,992,087
$ 13,639,422
$12,151,911
$54,275,448
$52,143,998
Governmental activities had the following major changes during the fiscal year:
A decrease in buildings mainly due to the amount of depreciation expense for the fiscal year.
A decrease in improvements mainly due to the amount of depreciation.
An increase in equipment and infrastructure mainly due to the additional of capital assets.
An increase in construction in progress due to the construction underway on the Police Evidence Garage and Working
Waterfront Restrooms.
Business -type activities had the following major changes during the fiscal year:
An increase in buildings due to the construction of Hangar "C".
A decrease in improvements due to the amount of depreciation expense for the fiscal year.
An increase in equipment due to acquiring the automated weather system.
A decrease in infrastructure mainly due to the amount of depreciation.
A decrease in construction in progress due to the completion of projects.
Long -Term Debt. At the end of the current fiscal year, the City had total long-term debt outstanding of $5,150,013. Of
this amount, $3,175,000 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.
27
CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
Total Long -Term Debt
Governmental Activities Business -type Activities Total
2017 2016 2017 2016 2017 2016
Notes payable $ 3,175,000 $ 4,106,000 $ - $ 162,245 $ 3,175,000 $ 4,268,245
Compensated absences 1,395,594 1,200,521 233,766 210,849 1,629,360 1,411,370
Pollution remediation 91,200 91,200 - - 91,200 91,200
Capital lease - - 254,453 254,453 -
Total $ 4,661,794 $ 5,397,721 $ 488,219 $ 373,094 $ 5,150,013 $ 5,770,815
The City's total debt decreased by $620,802 (10.76%) during the current fiscal year. The net decrease was attributable to
annual principal payments that occurred during the year.
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 2018 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 2017 was 4.3 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 12.27% overall increase in property values for 2018. The millage of 3.4000 was levied for taxes to
be recorded in fiscal year 2018 that will essentially provide the equivalent revenue from property taxes as received in
fiscal year 2017.
The Golf Course reported less revenues from fees in 2017, primarily due to temporary closures during reconstruction of
the greens. Although its net position improved with the large investment in capital assets, those investments were
accomplished by advances 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 advances to be repaid.
Sizable operating losses for the Airport are primarily the result of depreciation on capital assets. The City actively pursues
grant funds for construction new facilities that can generate additional rental revenues.
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 that steady activity in the local housing market can be expected to continue,
which is 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, 2017
Assets
Cash and cash equivalents
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
$ 3,899,956 $ 461,400 $ 4,361,356
924,503
-
924,503
3,113,789
116,946
3,230,735
876,216
-
876,216
1,098,228
323,601
1,421,829
1,476,438
(1,476,438)
-
187,497
26,473
213,970
55,008
18,768
73,776
1,199
1,602
2,801
8,772,939
339,481
9,112,420
31,863,087
13,299,941
45,163,028
52,268,860
13,111,774
65,380,634
823,292
-
823,292
1,012,418
160,826
1,173,244
21,950
417
22,367
72,019
84,945
156,964
695,151
48,286
743,437
3,966,643
439,933
4,406,576
33,757
1,374
35,131
3,249,982
-
3,249,982
9,051,920
735,781
9,787,701
229,575
-
229,575
37,461,026 13,384,969 50,845,995
148,407
941,061
148,407
941,061
2,854,881
2,854,881
540,748
540,748
516,204
516,204
112,242
112,242
1,236,088
(1,008,976) 227,112
$ 43,810,657 $ 12,375,993 $ 56,186,650
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, 2017
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
$ 3,379,369 $
6,549,037
3,769,377
2,279,149
106,577
1,326,245
63,141
17,472,895
Program Revenues
Operating Capital Net
Charges Grants and Grants and (Expense)
for Services Contributions Contributions Revenue
362,631 $
124,800
1,021,038
48,781
1,557,250
1,537,332 1,058,939
1,361,134 499,321
586,752 747,950
3,485,218 2,306,210
$ 20,958,113 $ 3,863,460 $
31
28,290 $ $ (2,988,448)
209,470 (6,214,767)
- (2,748,339)
12,532 674,778 (1,591,839)
- - (106,577)
272,496 (1,004,968)
- (63,141)
250,292 947,274 (14,718,079)
111,652 - (366,741)
4,403 1,566,737 709,327
- - 161,198
116,055 1,566,737 503,784
366,347 $ 2,514,011 $ (14,214,295)
continued...
CITY OF SEBASTIAN, FLORIDA
Statement of Activities
For the Year Ended September 30, 2017
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
$ (14,718,079) $ 503,784 $ (14,214,295)
4,147,115
4,147,115
5,945,386
5,945,386
1,271,403
1,271,403
2,616,522
-
2,616,522
135,614
10,787
146,401
290,269
-
290,269
(588,809)
588,809
-
13,817,500
599,596
14,417,096
(900,579)
1,103,380
202,801
44,711,236
11,272,613
55,983,849
$ 43,810,657 $
12,375,993
$ 56,186,650
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, 2017
The accompanying notes are an integral part of these basic financial statements.
34
General
Discretionary
Riverfront
Capital
General
Sales Tax
Redevelopment
Projects
Assets
Cash and cash equivalents
$ 1,222,758
$ 983,818
$ 442,764
$ 436,303
Investments
1,941,795
802,906
98,288
-
Accountsreceivable, net
371,067
-
-
Due from other funds
886,970
-
Due from other governments
284,790
310,265
Deposits held in escrow
1,199
-
Inventories
55,008
Prepaid items
187,497
-
Advance to other funds
100,000
550,638
-
-
Total assets
5,051,084
2,647,627
541,052
436,303
Liabilities
Accounts payable and accrued liabilities
421,511
3,750
304
456,853
Due to other funds
-
-
-
-
Due to other governments
50,408
Unearned revenue
72,019
-
-
-
Total liabilities
543,938
3,750
304
456,853
Fund balances (deficit)
Nonspendable
342,505
-
-
-
Restricted
63,016
2,643,877
540,748
-
Committed
-
-
-
Assigned
12,350
Unassigned
4,089,275
-
-
(20,550)
Total fund balances
4,507,146
2,643,877
540,748
(20,550)
Total liabilities and fund balances
$ 5,051,084
$ 2,647,627
$ 541,052
$ 436,303
The accompanying notes are an integral part of these basic financial statements.
34
- 79,592 962,010
9,870 51,300 61,170
- - 50,408
72,019
9,870 130,892
Nonmajor
Total
Transportation
Governmental
Governmental
Improvements
Funds
Funds
$
$ 1,738,816
$ 4,824,459
1,147,016
3,990,005
-
371,067
-
886,970
9,870
122,236
727,161
-
-
1,199
55,008
187,497
-
-
650,638
9,870
3,008,068
11,694,004
- 79,592 962,010
9,870 51,300 61,170
- - 50,408
72,019
9,870 130,892
1,145,607
- 941,061
1,283,566
946,791
4,194,432
995,144
995,144
-
12,350
(5,820)
4,062,905
- 2,877,176 10,548,397
$ 9,870 $ 3,008,068 $ 11,694,004
35
CITY OF SEBASTIAN, FLORIDA
Reconciliation
Fund Balances for Governmental Funds
to Net Position of Governmental Activities
September 30, 2017
Fund balances - total governmental funds $ 10,548,397
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 8,772,939
Capital assets being depreciated, net 31,863,087
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 (3,175,000)
Compensated absences (1,395,594)
Net other postemployment benefits obligation (33,757)
Pollution remediation liability (91,200)
Accrued interest on long-term debt (21,950)
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 (3,249,982)
Deferred outflows related to the net pension liability 823,292
Deferred inflows related to the net pension liability (229,575)
Net position of governmental activities $ 43,810,657
The accompanying notes are an integral part of these basic financial statements.
36
This page intentionally left blank.
37
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2017
38
General
Discretionary
Riverfront
Capital
General
Sales Tax
Redevelopment
Projects
Revenues
Taxes:
Property
$ 3,804,874 $
$ 342,241
$
Public utility
2,708,980
-
Sales
-
3,207,905
Motor fuel
-
-
Franchise fees
1,271,403
Licenses and permits
135,900
Intergovernmental
2,807,989
Impact fees
-
Chargesforservices
312,760
Fines
70,411
-
-
Investment earnings
59,845
39,963
5,758
Contributions and donations
25,420
-
-
20,000
Otherrevenues
227,794
-
36,000
-
Total revenues
11,425,376
3,247,868
383,999
20,000
Expenditures
Current:
General government
2,941,723
-
2,067
-
Public safety
5,068,912
-
-
Physical environment
871,521
1,619,942
Transportation
1,204,258
-
-
-
Economic environment
-
3,750
69,741
Culture and recreation
912,599
-
-
Debt service:
Principal
-
Interest and fiscal charges
-
-
Capital outlay
220,624
-
-
1,509,623
Total expenditures
11,219,637
3,750
71,808
3,129,565
Revenues over(under)expenditures
205,739
3,244,118
312,191
(3,109,565)
Other financing sources (uses)
Transfers in
663,569
-
-
3,089,015
Transfers out
(2,173,590)
(3,309,346)
(229,496)
-
Total other financing sources (uses)
(1,510,021)
(3,309,346)
(229,496)
3,089,015
Net changes in fund balances
(1,304,282)
(65,228)
82,695
(20,550)
Fund balances, beginning of year
5,811,428
2,709,105
458,053
Fund balances, end of year
$ 4,507,146 $
2,643,877
$ 540,748
$ (20,550)
The accompanying notes are an integral part of these
basic financial statements.
38
Nonmajor Total
Transportation Governmental Governmental
Improvements Funds Funds
108,699
108,699
8,841
1,924,348
1,933,189
(1,824,490)
1,874,525
(3,542)
1,870,983
46,493
(46,493)
E1
$
$ 4,147,115
74,069
2,708,980
120,828
3,207,905
674,778
674,778
-
1,271,403
-
135,900
74,502
2,991,190
102,700
102,700
1,040,249
1,353,009
26,431
96,842
30,048
135,614
-
45,420
26,475
290,269
1,975,183 17,161,125
2,943,790
65,476
5,134,388
74,069
2,565,532
120,828
1,333,927
-
73,491
14,775
927,374
931,000 931,000
68,512 68,512
241,636 3,896,231
1,516,296 17,874,245
458,887 (713,120)
1,557,749
7,184,858
(2,057,693)
(7,773,667)
(499,944)
(588,809)
(41,057)
(1,301,929)
2,918,233
11,850,326
$ 2,877,176
$ 10,548,397
I&A
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, 2017
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 note proceeds provide current financial resources to governmental funds
in the period issued, but issuing bond notes increases long-term liabilities in the
statement of net position. Repayment of bond note 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.
40
$ (1,301,929)
3,896,231
(3,225,067)
(27,225)
931,000
5,371
(195,073)
(4,516)
(979,371)
$ (900,579)
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - General Fund
For the Year Ended September 30, 2017
The accompanying notes are an integral part of these basic financial statements.
41
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Taxes:
Property
$ 3,795,525
$ 3,795,525
$ 3,804,874
$ 9,349
Public utility
2,749,536
2,749,536
2,708,980
(40,556)
Franchise fees
1,325,971
1,325,971
1,271,403
(54,568)
Licenses and permits
139,500
139,500
135,900
(3,600)
Intergovernmental
2,519,300
2,710,767
2,807,989
97,222
Charges for services
321,102
321,102
312,760
(8,342)
Fines
55,000
55,000
70,411
15,411
Investment earnings
34,000
34,000
59,845
25,845
Contributions and donations
11,100
24,600
25,420
820
Otherrevenues
221,454
253,678
227,794
(25,884)
Total revenues
11,172,488
11,409,679
11,425,376
15,697
Expenditures
Current:
General government
2,964,800
2,998,384
2,941,723
(56,661)
Public safety
4,844,135
5,045,554
5,068,912
23,358
Physical environment
1,062,852
1,047,547
871,521
(176,026)
Transportation
1,370,287
1,384,747
1,204,258
(180,489)
Culture and recreation
925,284
937,032
912,599
(24,433)
Capital outlay
157,925
218,808
220,624
1,816
Total expenditures
11,325,283
11,632,072
11,219,637
(412,435)
Revenues over (under) expenditures
(152,795)
(222,393)
205,739
428,132
Other financing sources (uses)
Transfers in
663,569
982,532
663,569
(318,963)
Transfers out
(510,774)
(760,139)
(2,173,590)
(1,413,451)
Total other financing sources (uses)
152,795
222,393
(1,510,021)
(1,732,414)
Net changes in fund balances
-
-
(1,304,282)
(1,304,282)
Fund balance, beginning of year
5,811,428
5,811,428
5,811,428
Fund balance, end of year
$ 5,811,428
$ 5,811,428
$ 4,507,146
$ (1,304,282)
The accompanying notes are an integral part of these basic financial statements.
41
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Discretionary Sales Tax Special Revenue Fund
For the Year Ended September 30, 2017
The accompanying notes are an integral part of these basic financial statements.
42
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Taxes:
Sales
$ 3,004,788
$ 3,004,788
$ 3,207,905
$ 203,117
Investment earnings
27,418
27,418
39,963
12,545
Total revenues
3,032,206
3,032,206
3,247,868
215,662
Expenditures
Current:
Economic environment
-
-
3,750
3,750
Revenues over expenditures
3,032,206
3,032,206
3,244,118
211,912
Other financing sources (uses)
Transfers in
-
2,352,410
-
(2,352,410)
Transfers out
(3,032,206)
(5,384,616)
(3,309,346)
2,075,270
Total other financing uses
(3,032,206)
(3,032,206)
(3,309,346)
(277,140)
Net changes in fund balance
-
-
(65,228)
(65,228)
Fund balance, beginning of year
2,709,105
2,709,105
2,709,105
Fund balance, end of year
$ 2,709,105
$ 2,709,105
$ 2,643,877
$ (65,228)
The accompanying notes are an integral part of these basic financial statements.
42
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Riverfront Redevelopment Special Revenue Fund
For the Year Ended September 30, 2017
The accompanying notes are an integral part of these basic financial statements.
43
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Taxes:
Property
$ 343,707
$ 343,707 $
342,241
$ (1,466)
Investment earnings
1,322
1,322
5,758
4,436
Otherrevenues
36,000
36,000
36,000
-
Total revenues
381,029
381,029
383,999
2,970
Expenditures
Current:
General government
2,500
2,500
2,067
(433)
Economic environment
369,087
221,313
69,741
(151,572)
Total expenditures
371,587
223,813
71,808
(152,005)
Revenues over expenditures
9,442
157,216
312,191
154,975
Other financing sources (uses)
Transfersin
-
270,955
-
(270,955)
Transfers out
(418,729)
(229,496)
189,233
Total other financing uses
-
(147,774)
(229,496)
(81,722)
Net changes in fund balance
9,442
9,442
82,695
73,253
Fund balance, beginning of year
458,053
458,053
458,053
-
Fund balance, end of year
$ 467,495
$ 467,495 $
540,748
$ 73,253
The accompanying notes are an integral part of these basic financial statements.
43
CITY OF SEBASTIAN, FLORIDA
Statement of Net Position
Proprietary Funds
September 30, 2017
The accompanying notes are an integral part of these basic financial statements.
44
Business -type Activities - Enterprise Funds
Golf
Nonmajor -
Course
Airport
Building
Total
Assets
Current assets:
Cash and cash equivalents
$ 90,207
$ 76,801 $
294,392 $
461,400
Investments
-
-
116,946
116,946
Accounts receivable
10,823
503
-
11,326
Due from other governments
-
312,275
312,275
Inventories
13,088
5,680
-
18,768
Deposits held in escrow
493
616
493
1,602
Prepaid items
6,321
12,465
7,687
26,473
Total current assets
120,932
408,340
419,518
948,790
Noncurrent assets:
Advance to other funds
-
-
1,023,318
1,023,318
Capital assets:
Land
-
9,060
10,376
19,436
Buildings
437,153
8,728,972
-
9,166,125
Improvements other than buildings
1,183,568
1,666,973
-
2,850,541
Machinery and equipment
494,864
903,624
112,738
1,511,226
Infrastructure
1,369,779
7,362,883
-
8,732,662
Construction in process
65,212
254,833
320,045
Less accumulated depreciation
(1,592,068)
(7,313,861)
(54,684)
(8,960,613)
Total noncurrent assets
1,958,508
11,612,484
1,091,748
14,662,740
Total assets
2,079,440
12,020,824
1,511,266
15,611,530
Liabilities
Current liabilities:
Accounts payable and accrued liabilities
76,778
49,941
23,148
149,867
Due to other funds
535,800
290,000
-
825,800
Due to other governments
4,657
1,139
5,580
11,376
Unearned revenues
68,519
9,094
7,332
84,945
Current portion of notes payable
48,286
-
-
48,286
Total current liabilities
734,040
350,174
36,060
1,120,274
Noncurrent liabilities:
Compensated absences, net of current portion
93,121
37,357
103,288
233,766
Advance from other fund
1,023,318
650,638
-
1,673,956
Notes payable
206,167
-
-
206,167
Net other postemployment benefit obligation
417
219
738
1,374
Total noncurrent liabilities
1,323,023
688,214
104,026
2,115,263
Total liabilities
2,057,063
1,038,388
140,086
3,235,537
Net position
Net investment in capital assets
1,704,055
11,612,484
68,430
13,384,969
Unrestricted (deficit)
(1,681,678)
(630,048)
1,302,750
(1,008,976)
Total net position
$ 22,377
$ 10,982,436 $
1,371,180 $
12,375,993
The accompanying notes are an integral part of these basic financial statements.
44
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds
For the Year Ended September 30, 2017
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 sale of capital assets
Total nonoperating revenues (expenses)
Income (loss) before capital contributions and transfers
Capital contributions
Transfers in
Transfers out
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
1,018,066
26,999
13,874
1,058,939
357,558
1,019,164
155,240
1,531,962
(473,023)
343,646
155,675
499,321
216,085
429,903
690,642
1,336,630
(837,309)
747,950 $
747,950
454,375
117,480
14,897
586,752
161,198
747,950
1,018,066
370,645
169,549
2,306,210
1,028,018
1,566,547
860,779
3,455,344
(1,149,134)
The accompanying notes are an integral part of these basic financial statements.
45
1,284
9,503
10,787
(5,370)
(24,504)
-
(29,874)
111,652
4,403
-
116,055
106,282
(18,817)
9,503
96,968
(366,741)
(856,126)
170,701
(1,052,166)
-
1,566,737
-
1,566,737
192,370
498,097
29,544
720,011
(66,275)
(64,927)
-
(131,202)
(240,646)
1,143,781
200,245
1,103,380
263,023
9,838,655
1,170,935
11,272,613
22,377
$ 10,982,436 $
1,371,180
$ 12,375,993
The accompanying notes are an integral part of these basic financial statements.
45
CITY OF SEBASTIAN, FLORIDA
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2017
Cash flows from operating activities
Cash received from customers and users
Cash payments to suppliers
Cash payments for employee services
Net cash (used) provided 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 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 -
(220,944)
Course
Airport
Building
Total
$ 1,045,758
$ 329,087
$ 746,884
$ 2,121,729
(1,006,391)
(453,180)
(119,241)
(1,578,812)
(349,307)
(209,188)
(446,425)
(1,004,920)
(309,940)
(333,281)
181,218
(462,003)
(5,370)
(24,503)
-
(29,873)
(39,362)
(264,927)
(666,618)
(970,907)
832,075
498,097
29,544
1,359,716
787,343
208,667
(637,074)
358,936
(220,944)
(220,944)
(382,991)
(1,945,121)
(2,328,112)
215,241
193,787
409,028
-
1,566,737
1,566,737
(388,694)
(184,597)
-
(573,291)
595,747
595,747
-
(954)
(954)
1,284
9,503
10,787
-
1,284
604,296
605,580
88,709
(307,927)
148,440
(70,778)
1,498
384,728
145,952
532,178
$ 90,207
$ 76,801 $
294,392
$ 461,400
46
continued...
CITY OF SEBASTIAN, FLORIDA
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2017
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
Prepaid items
Accounts payable
Due to other governments
Unearned revenues
Accrued compensated absences
Net other postemployment benefit obligation
Total adjustments
Net cash (used) provided by operating activities $
Business -type Activities - Enterprise Funds
Golf Nonmajor -
Course Airport Building Total
(473,023) $ (837,309) $ 161,198 $ (1,149,134)
155,240
690,642
14,897
860,779
(10,590)
4,785
-
(5,805)
(217)
13,245
13,028
-
(169,454)
(169,454)
1,798
(2,576)
(4,753)
(5,531)
11,192
(33,946)
2,992
(19,762)
(1,389)
14
(378)
(1,753)
(1,202)
(5,579)
(688)
(7,469)
8,196
6,868
7,853
22,917
55
29
97
181
163,083
504,028
20,020
687,131
(309,940) $
(333,281) $
181,218 $
(462,003)
Noncash transactions: concluded
The Golf Course Fund financed the acquisition of capital assets with noncash capital leases of $313,152 for the year ended
September 30, 2017.
The accompanying notes are an integral part of these basic financial statements.
47
CITY OF SEBASTIAN, FLORIDA
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2017
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
Collateralized mortgage obligations
Unit Investment trusts
Municipal obligations
Domestic corporate bonds
Foreign 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
$ -
$ 6,930
34,918
- 73,750
1,469,539 -
713,872
257,300
473,057
125,087
169,518
1,670,219
433,423
8,232,558
414,998
8,030 -
13,967,601 73,750
14,002,519 $ 80,680
$ 14,002,519
The accompanying notes are an integral part of these basic financial statements.
48
$ 80,680
CITY OF SEBASTIAN, FLORIDA
Statement of Changes in Fiduciary Net Position
Fiduciary Fund - Pension Trust
For the Year Ended September 30, 2017
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
Refunded contributions
Administrative expenses
Total deductions
Change in net position
Net position, beginning of year
Net position, end of year
Police
Officers'
Pension
$ 337,201
177,585
168,628
683,414
1,113,659
341,050
1,454,709
(73,317)
1,381,392
2,064,806
493,765
1,864
55,368
550,997
1,513,809
12, 488, 710
$ 14,002,519
The accompanying notes are an integral part of these basic financial statements.
CLi
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50
NOTES TO FINANCIAL STATEMENTS
51
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 24,192 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."
52
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Government -wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the nonfiduciary activities of the primary government and its
component units. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business -type activities, which rely to a significant extent on fees
and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include (1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment and (2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds,
even though the latter are excluded from the government -wide financial statements. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred,
regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for
which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
Agency funds are custodial in nature and do not present results of operations or have a measurement
focus.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
government considers revenues to be available if they are collected within 60 days of the end of the
current fiscal period, and expenditure -driven grants which must be collected within one year.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However,
debt service expenditures, as well as expenditures related to compensated absences and claims and
judgments, are recorded only when payment is due.
53
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
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.
The General Capital Projects Fund is 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 Transportation Improvements Capital Projects Fund is used to account for and report financial
resources that are restricted, committed, or assigned to expenditure for improvement and construction of
transportation assets.
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.
54
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
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.
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.
55
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Internal Balances
Transactions between funds that are representative of [ending/ borrowing arrangements outstanding at
the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of
interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All
other outstanding balances between funds are reported as "due to/from other funds." Any residual
balances outstanding between the governmental activities and business -type activities are reported in the
government -wide financial statements as "internal balances."
Advances between funds are offset by nonspendable fund balance in 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 restricted investments.
Receivables and Payables
All trade and property tax receivables are shown net of an allowance for uncollectibles, as applicable.
Amounts due from other governments include amounts due from grantors for specific programs and
capital projects. Program grants and capital grants for capital assets are recorded as receivables and
revenues at the time reimbursable project costs are incurred. Revenues received in advance of project
costs being incurred are deferred. Receivables consist of trade receivables, due from other governments
and interest receivable and are recorded at the net realizable value. As of September 30, 2017, 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.
56
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Capital Assets
Capital assets, which include land, buildings, improvements, equipment, and infrastructure assets (e.g.,
roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business -type
activities columns in the government -wide financial statements. The City defines capital assets as assets
with an initial, individual cost of more than $750 and an estimated useful life in excess of one year. Such
assets are recorded at historical cost, if purchased, and at 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:
Years
Buildings and improvements 10-40
Public domain infrastructure 40-50
System infrastructure 15-30
Improvements other than building! 10-40
Machinery, equipment and other 5-15
Airport runways 20
Deferred Outflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element 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.
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.
57
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Unearned Revenue
Governmental funds report unearned revenue in connection with resources that have been received, but
not yet earned.
Deferred Inflows of Resources
In addition to liabilities, the statement of financial position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element represents an acquisition of net
position that applies to 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.
Long4erm Obligations
In the government -wide financial statements and proprietary fund types in the fund financial statements,
long term debt and other long term obligations are reported as liabilities in the applicable governmental
activities, business type activities, or proprietary fund type statement of net position.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as
other financing sources. Premiums received on debt issuances are reported as other financing sources
while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service expenditures.
Fund Equity
Governmental funds report nonspendable fund balance for amounts that cannot be spent because they
are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.
Restricted fund balance is reported when externally imposed constraints are placed on the use of
resources by grantors, contributors, or laws or regulations of other governments. Committed fund balance
is reported for amounts that can only be used for specific purposes pursuant to constraints imposed by
formal action of the City Council (the government's highest level of decision-making authority). A formal
resolution of the City Council is required to establish, modify, or rescind a fund balance commitment. The
City 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.
58
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and assumptions that affect the
amounts reported in the financial statements and accompanying notes. Actual results may differ from
those estimates.
2. BUDGETARY INFORMATION
Budgets are prepared annually on a modified accrual basis with encumbrance accounting for all
governmental funds except the capital project funds, which are approved on a "life of the project basis",
and the permanent fund, which is not budgeted. All annual appropriations lapse at year end.
On or before the third Friday in May of each year, all agencies of the government submit requests for
appropriations to the government's City Manager so that a budget may be prepared. Before July 31, the
proposed budget is presented to the government's council for review. The council holds budget workshops
and public hearings and a final budget must be prepared and adopted no later than September 30.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is
employed as an extension of formal budgetary integration in the General, Special Revenue, Debt Service,
and Capital Projects funds. Encumbrances outstanding at year end are carried forward and
reappropriated to the next year's budget.
Actual results of operations presented in accordance with U.S. generally accepted accounting principles
(GAAP basis) and the City's accounting policies do not recognize encumbrances as expenditures until the
period in which the actual goods or services are received and a liability is incurred. It is necessary to
include budgetary encumbrances to reflect actual revenues and expenditures on a basis consistent with
the City's legally adopted budget.
The legal level of budgetary control is at the departmental level. As reported on the General Fund budget
and actual statement, there were minor violations for the public safety department and capital outlay
accounts.
W]
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, 2017:
Statement of Net Position
Cash and cash equivalents $ 4,361,356
Restricted cash and cash equivalents 924,503
Investments 3,230,735
Restricted investments 876,216
Statement of Fiduciary Net Position
Police Officers' Pension -
Investments 13,967,601
Agency funds:
Cash and cash equivalents 6,930
Investments 73,750
Total $ 23,441,091
Deposits and investments
Bank deposits -
Checking and savings accounts $ 5,290,359
Investments:
Investments, at fair value 4,180,701
Police officers' pension fund investments 13,967,601
Cash on hand 2,430
Total $ 23,441,091
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, 2017, the carrying amount of the City of
Sebastian's deposits with banks was $5,290,359 and the bank balance was $5,292,789. 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.
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Investment holdings during the year included United States Government Agencies which were reported at fair value in accordance with GASB
Statement No.31 "Accounting and Financial Reporting for Certain Investments and for External Investment Pools". These investments were held in
trust by the City's bank depository in the City's name or by the Custodian of the Pension Trust Funds.
Section 218.415, Florida Statutes, limits the types of investments that the City can invest in unless specially authorized in the City's investment policy.
The City's formal investment policy, for all investments except the Pension Trust Fund, allows for the following investments: Florida Local Government
Surplus Funds Trust Fund, United States Government Securities, United States Government Agencies, Federal Instrumentalities, Interest Bearing Time
Deposit or Saving Accounts, Repurchase Agreements, Commercial Paper, High Grade Corporate Notes, Bankers' Acceptances, State and/or Local
Government Taxable and/or Tax -Exempt Debt, Registered Investment Companies (Money Market Mutual Funds), and Intergovernmental Investment
Pool.
Florida Statutes Chapter 185 regulates the types of investment that may be held by the Police Pension Trust Fund. The investment guidelines have
been augmented by City ordinance that have adopted specific investment policies. Compliance with the policies and guidelines has been evaluated by
the pension board.
As of September 30, 2017, the City had the following investments and effective duration presented in terms of years:
==Investment
Maturity (Years)
Iff
7nvestm�entType�i From 1-3 From 4-6 O
General investments
Local government surplus
funds trust fund ("SBA") $ 4,180,701 $ 4,180,701 $ 4,180,701 $ $ $
Police officers' pension fund investments
Money market $ 1,469,539 $ 1,469,539 $ - $ $ $ -
United States treasuries 713,872 - 29,874 173,977 328,309 181,712
United States agencies 257,300 - 2,039 11,029 - 244,232
Collateralized mortgage obligations 473,057 473,057 - - -
Unit Investment trusts 125,087 8,030 - -
Municipal obligations 169,518 - - 101,682 67,836
Domesti corporate bonds 1,670,219 322,112 674,619 673,488
Foreign corporate bonds 433,423 - 79,797 125,421 228,205
Domestic corporate equities 8,232,558 8,232,558 - - -
Foreign corporate equities 414,998 414,998
EFT equitites 8,030 125,087 - - - -
$ 13,967,601 $ 10,723,269 $ 31,913 $ 586,915 $ 1,230,031 $ 1,395,473
61
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Interest Rate Risk. The City's investment policy limits interest rate risk by attempting to match
investment maturities with known cash needs and anticipated cash flow requirements. Investment
maturities shall not exceed thirty-six (36) months. Investments of construction funds shall have a term
appropriate to the need for funds and in accordance with debt covenants.
Credit Risk. The City investment policy that covers all investments, except the Pension Trust Fund,
permits 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 Et Poor's, or the equivalent by another
rating agency. State and/or local government taxable and/or tax-exempt debt, general obligation and/or
revenue bonds, rated at least "Aa" by Moody's and "AA" by Standard Et Poor's for long-term debt, or rated
at least "MIG -2" by Moody's and 'SP -2" by Standard Et Poor's for short-term debt. Bankers' acceptances
issued by a domestic bank or a federally chartered domestic office of a foreign bank, which are eligible
for purchase by the Federal Reserve System, at the time of purchase, the short-term paper is rated, at a
minimum, "P -I" by Moody's Investors Services and "Ad" 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, 2017, the City's investment securities, for all investments except the Pension Trust
Fund, were all individually rated AAA by Standard Et Poor's. The investment ratings for the Pension Trust
Fund ranged between AAA through BBB.
As of September 30, 2017, the City had $4,180,701 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 "AAA" on September 30, 2017 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 December 31, 2016. 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. See table below for credit ratings by investment type. 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.
62
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Custodial Credit Risk. The City's investment policy pursuant to Section 218.415(18), Florida Statutes
requires securities, with the exception of certificates of deposits, shall be held with a third party
custodian; and all securities purchased by, and all collateral obtained by the City should be properly
designated as an asset of the City. The securities must be held in an account separate and apart from the
assets of the financial institution. A third party custodian is defined as any bank depository chartered by
the Federal Government, the State of Florida, or any other state or territory of the United States which
has a branch or principal place of business in the State of Florida as defined in Section 658.12, Florida
Statutes, or by a national association organized and existing under the laws of the United States, which is
authorized to accept and execute trusts and which is doing business in the State of Florida. Certificates of
deposits maintained by book -entry at the issuing bank shall clearly identify the City as the owner.
Concentration of Credit Risk. The City's investment policy has established asset allocation and issuer
limits on the following investments, which are designed to reduce concentration of credit risk of the City's
investment portfolio.
A maximum of 100% of available funds may be invested in the SBA and in the United States Government
Securities, 50% of available funds may be invested in United States Government agencies with a 25% limit
on individual issuers, 80% of available funds may be invested in Federal Instrumentalities with a 40% limit
on individual issuers, 25% of available funds may be invested in non-negotiable interest bearing time
certificates of deposits with a 15% limits on individual issuers, 50% of available funds may be invested in
repurchase agreements excluding one (1) business day agreements and overnight sweep agreements with
a 25% limit on anyone institution, 25% of available funds may be directly invested in prime commercial
paper with a 10% limit on individual issuers, 15% of available funds may be directly invested in corporate
notes with a 5% limit on individual issuers, 25% of available funds may be directly invested in Bankers'
Acceptances with a 10% limit on individual issuers, 20% of available funds may be invested in taxable and
tax-exempt debts, 50% of available funds may be invested in money market mutual fund with a 25% limit
on individual issuers, 10% of available funds may be invested in intergovernmental investment pools.
The City's pension trust funds investment policy adopted by the fund's Board of Trustees has established
asset allocation and issuer limits on the following investments, which are designed to focus on
performance. A maximum of 100% of available funds may be invested in fixed income securities and a
maximum of 60% of available funds may be invested in equity securities.
63
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
As of September 30, 2017, the City had the following issuer concentration based on fair value and
investment ratings:
Issuer
Local government surplus
funds trust fund ("SBA")
Money market
United States treasureies
United States agencies
Collateralized mortgage
obligations
Unit Investment trusts
Municipal obligations
Domestic corporate bonds
Foreign corporate bonds
Domestic corporate equities
Foreign corporate equities
EFT equities
Total
General Investments Pension Investments
Percentage of
Percentage of
S£tP/Moody
Amount Portfolio
Amount
Portfolio
Ratings
$ 4,180,701 100.00%
$ -
0.00%
- 0.00%
1,469,539
10.52%
Not Rated
0.00%
713,872
5.11%
AA+
0.00%
257,300
1.84%
Not Rated
0.00%
473,057
3.39%
AAA
0.00%
125,087
0.90%
Not Rated
0.00%
169,518
1.21%
AA -/AA+
0.00%
1,670,219
11.96%
BBB thru AAA
0.00%
433,423
3.10%
AA -/AAA
0.00%
8,232,558
58.94%
Not Rated
0.00%
414,998
2.97%
Not Rated
0.00%
8,030
0.06%
Not Rated
$ 4,180,701
Fair Value Measurement
100.00% $ 13,967,601 100.00%
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.
64
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
The City has the following recurring fair value measurements as of September 30, 2017:
Level Level Level Total
Local government surplus funds
trust fund ("SBA")
$ 4,180,701 $
$
$ 4,180,701
Money market
1,469,539
1,469,539
United States treasureies
713,872
713,872
United States agencies
-
257,300
257,300
Collateralized mortgage
-
473,057
473,057
Unit Investment trusts
125,087
-
125,087
Municipal obligations
-
169,518
169,518
Domestic corporate bonds
1,670,219
1,670,219
Foreign corporate bonds
-
433,423
433,423
Domestic corporate equities
7,111,317
1,121,241
8,232,558
Foreign corporate equities
414,998
-
414,998
EFT equities
8,030
8,030
$ 14,023,544 $ 4,124,758 $ - $ 18,148,302
4. RECEIVABLES
Receivables are comprised of the following at year-end:
Governmental Business -type Total
Activities Activities
Accounts receivable $ 371,067 $ 11,326 $ 382,393
Due from other governments 727,161 312,275 1,039,436
$ 1,098,228 $ 323,601 $ 1,421,829
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 $ 656,663 $ 107,924 $ 764,587
Accrued liabilities 305,347 41,526 346,873
Due to other governments 50,408 11,376 61,784
$ 1,012,418 $ 160,826 $ 1,173,244
65
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, 2017, was as follows:
Due to and from primary government funds
General Fund
Transportation Improvements Fund
Nonmajor Governmental Funds
Golf Course
Airport
Due from Due to Other
Other Funds Funds
$ 886,970 $ -
- 9,870
51,300
535,800
290,000
$ 886,970 $ 886,970
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
Golf Course
Airport
Building
Advance from Advance to
Other Funds Other Funds
$ $ 100,000
550,638
1,023,318 -
650,638 -
- 1,023,318
$ 1,673,956 $ 1,673,956
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. The $100,000 advanced to the
airport from general fund represents a cash loan made in 2007 without any specified terms for
repayment. The $1,023,318 was advanced from the Building Fund to replace the irrigation system and
make other improvements at the Golf Course.
66
CITY OF SEBASTIAN, FLORIDA
Nq& to Financial Statements
For the year ended September 30, 2017, interfund
transfers
consisted of the following:
Riverfront Transportation
Nonmajor
�M Discretionary
rndSales
Redevelopment Improvements
Governmental Golf Course
Airport
Tax Fund
Fund Fund
Funds M i
Fund
Fund di
General Fund $ - $
-
$ $
$ 653,569 $
$
10,000 $ 663,569
Capital Projects Fund 1,603,353
1,137,676
347,986
- 3,089,015
Transportation Improvements
-
Fund 132,925
856,622
188,730 3,542
692,706
1,874,525
Nonmajor Governmental
Funds 305,449
848,102
40,766 -
363,432
1,557,749
Golf Course 78,823
51,816
-
-
61,731
192,370
Airport Fund 28,040
415,130
-
54,927 498,097
Building Fund 25,000
-
- -
-
4,544
29,544
$ 2,173,590 $
3,309,346
$ 229,496 $ 3,542
$ 2,057,693 $
66,275 $
64,927 $ 7,904,869
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.
67
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
7. CAPITAL ASSETS
Capital asset activity for the primary government for the year ended September 30, 2017, was as follows:
Beginning Ending
Balance Additions Disposals Transfers Balance
Governmental activities
Capital assets, not being depreciated:
Land $
8,319,588 $
71,462 $
$
- $
8,391,050
Construction in progress
227,035
1,421,138
(1,266,284)
381,889
8,546,623
1,492,600
(1,266,284)
8,772,939
Capital assets, being depreciated:
Buildings
13,110,829
38,933
192,290
13,342,052
Non -building improvements
6,869,838
1,400
-
6,871,238
Machinery and equipment
8,668,356
1,275,314
(299,581)
-
9,644,089
Infrastructure
39,938,233
1,087,984
1,073,994
42,100,211
68,587,256
2,403,631
(299,581)
1,266,284
71,957,590
Less accumulated depreciation for:
Buildings
(5,355,315)
(372,679)
-
(5,727,994)
Non -building improvements
(3,919,085)
(310,700)
-
(4,229,785)
Machinery and equipment
(6,584,397)
(792,582)
272,356
(7,104,623)
Infrastructure
(21,282,995)
(1,749,106)
-
(23,032,101)
(37,141,792)
(3,225,067)
272,356
-
(40,094,503)
Total capital assets
being depreciated, net
31,445,464
(821,436)
(27,225)
1,266,284
31,863,087
Governmental activities
capital assets, net $
39,992,087 $
671,164 $
(27,225) $
- $
40,636,026
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Beginning
Ending
Balance
Additions
Disposals
Transfers
Balance
Business -type activities
Capital assets, not being depreciated:
Land $ 19,436
$ - $
-
$
-
$ 19,436
Construction in progress 1,080,864
2,292,915
(203,566)
(2,850,168)
320,045
1,100,300
2,292,915
(203,566)
(2,850,168)
339,481
Capital assets, being depreciated:
Buildings 6,685,840
-
(61,070)
2,541,356
9,166,126
Non -building improvements 2,809,818
4,826
35,898
2,850,542
Machinery and equipment 1,428,430
343,523
(264,813)
4,086
1,511,226
Infrastructure 8,463,834
-
268,828
8,732,662
19,387,922
348,349
(325,883)
2,850,168
22,260,556
Less accumulated depreciation for:
Buildings (1,762,161)
(210,821)
61,070
-
(1,911,912)
Non -building improvements (1,219,076)
(120,246)
-
(1,339,322)
Machinery and equipment (939,351)
(126,971)
175,405
(890,917)
Infrastructure (4,415,723)
(402,741)
-
(4,818,464)
(8,336,311)
(860,779)
236,475
-
(8,960,615)
Total capital assets
being depreciated, net 11,051,611
(512,430)
(89,408)
2,850,168
13,299,941
Business -type activities
capital assets, net $ 12,151,911
$ 1,780,485 $
(292,974)
$
-
$ 13,639,422
Depreciation expense was charged to
functions/ programs
of the primary
government as follows:
Depreciation of governmental activities by function
General government
$
350,400
Public safety
321,420
Transportation
890,511
Physical environment
1,236,570
Economic environment
33,088
Cultural and recreation
393,078
Total governmental activities
$
3,225,067
Depreciation of business -type activities by function
Golf course
$
155,240
Airport
690,642
Building
14,897
Total business -type activities
$
860,779
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, 2017, 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, 2017:
Governmental activities
Notes payable
Compensated absences
Pollution remediation
Totals governmental
activities
Beginning
Balance Additions Deductions
$ 4,106,000 $ - $ (931,000) $
1,200,021 498,984 (303,411)
91,200 -
Ending Due Within
Balance One Year
3,175,000 $ 590,000
1,395,594 105,151
91,200 -
$ 5,397,221 $ 498,984 $ (1,234,411) $ 4,661,794 $ 695,151
Notes uavable
Florida Gas Tax Revenue Note, due in annual installments of
$97,000 to $121,000 plus interest at 1.94%
through 2023. $ 1,263,000
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. 1,912,000
70
$ 3,175, 000
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, 2017:
Beginning Ending Due Within
Balance Additions Deductions Balance One Year
Business -type activities
Note payable $ 162,245 $ - $ (162,245) $ - $
Compensated absences 210,849 61,367 (38,450) 233,766 -
Capitallease - 313,152 (58,699) 254,453 48,286
Totals business -type
activities $ 373,094 $ 374,519 $ (259,394) $ 488,219 $ 48,286
Annual debt service requirements to maturity for long-term debt are as follows:
Governmental Activities
Year Ended
September 30, Principal Interest
2018 $
590,000 $
56,523
2019
601,000
45,836
2020
611,000
34,939
2021
620,000
23,868
2022
632,000
12,635
Thereafter
121,000
1,174
$ 3,175,000 $ 174,975
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. This liability
would generally be liquidated by the General Fund.
71
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, 2017. 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, 2017:
Year Ended
September 30,
2018
2019
2020
2021
2022
2023-2027
2028-2032
2033-2037
2038-2042
2043-2045
Airport
100,000
100,000
100,000
100,000
100,000
500,000
500,000
500,000
500,000
200,000
Total $ 2,700,000
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
2018
$ 227,030
2019
222,272
2020
224,689
2021
227,106
2022
229,771
2023-2027
960,896
2028-2032
995,240
2033-2037
1,109,714
2038-2042
1,255,816
2043-2047
1,242,283
2048-2052
1,180,267
2053-2055
849,042
Total $ 8,724,125
72
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 2045. 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
2018
$ 283,832
2019
249,534
2020
249,534
2021
249,534
2022
249,534
2023-2027
1,069,013
2028-2032
963,452
2033-2037
552,625
2038-2042
138,375
2043-2045
83,025
Total $ 4,088,458
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, 2017, was 3.8000 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.
73
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor
agencies, principally the federal and state governments. Any disallowed claims, including amounts
already collected, may constitute a liability to the applicable funds. The amount, if any, of expenditures
that may be disallowed by the grantor cannot be determined at this time, although the City expects such
amounts, if any, to be immaterial.
12. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of or damage to and destruction of
assets; errors and omissions; and natural disasters. The City purchases commercial insurance with various
deductibles for different types of losses. The cost of this insurance is accounted for in the General Fund,
Golf Course Fund, Airport Fund, and Building Fund. Settled claims have not exceeded this commercial
coverage in the past three fiscal years.
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, 2017.
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.
74
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Concentrations. At September 30, 2017, 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.
Plan Membership. As of September 30, 2017, 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 12
Active plan members 37
Total membership 61
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. Members contribute 8% 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. State contributions are reported as revenues and expenditures in
the General Fund before being reported in the Pension Trust Fund.
Rate of Return. For the year ended September 30, 2017, the annual money -weighted rate of return on
pension plan investments, net of pension plan investment expense, was 10.90 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, 2017, were as follows:
Total pension liability $ 17,252,501
Less: Plan fiduciary net position 14,002,519
City's net pension liability $ 3,249,982
Plan fiduciary net position as
percentage of total pension
liability 81.16%
75
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Actuarial Assumptions. The total pension liability was determined by an actuarial valuation as of October
1, 2016 updated to September 30, 2017 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%
7.30%
7.30%
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.
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, 2017 are summarized in the following table:
Long-term Money -
Target Expected Real Weighted Rate
Asset Class Allocation Rate of Return of Return
Domestic equity
52.50%
5.99%
3.14%
International equity
12.50%
5.60%
0.70%
Fixed income
25.00%
1.85%
0.46%
Real Estate
5.00%
2.90%
0.15%
Master Limited Partnerships
5.00%
5.00%
0.25%
Total
100.00%
4.70%
Inflation
Risk adjustments
Investment rate of return
76
2.50%
0.10%
7.30%
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Discount Rate. The discount rate used to measure the total pension liability was 7.30 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 October 31, 2016 valuation
that had an 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 7.45% to 7.30%.
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 7.30 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 (6.30 percent) or one percentage point higher (8.30 percent) than the current rate.
Net Pension Liability
One Percent Current One Percent
Decrease Discount Rate Increase
6.30% 7.30% 8.30%
$ 5,578,152 $ 3,249,982 $ 1,326,059
Changes in the net pension liability. The components of the change in the net pension liability are
summarized as follows:
Balances at September 30, 2016
Changes for the year:
Service cost
Interest on total pension liability
Changes of benefit terms
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
Administrative expense
Net changes
Balances at September 30, 2017
77
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
$ 15,071,285 $ 12,488,710 $ 2,582,575
479,778 479,778
1,179,511 1,179,511
613,973 613,973
20,758 20,758
382,825 382,825
(495,629) (495,629)
337,201 (337,201)
168,628 (168,628)
177,585 (177,585)
1,381,392 (1,381,392)
- (55,368) 55,368
2,181,216 1,513,809 667,407
$ 17,252,501 $ 14,002,519 $ 3,249,982
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Changes of benefit terms resulted from an amendment to the plan to provide a cost -of -living adjustment
and modify the member contribution rate and benefit accrued rate.
State statutes mandate that the State contribution be recorded as revenue to the General Fund and then
paid to the Pension Trust Fund.
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions. For the year ended September 30, 2017, the City recognized pension expense of $550,997. At
September 30, 2017, the City reported pension -related deferred outflows of resources and deferred
inflows of resources from the following sources:
Difference between expected and
actual experience
Changes in assumptions
Net difference between projected and actual
earnings on pension plan investments
Deferred Deferred Net Deferred
Outflows of Inflows of Outflows of
Resources Resources Resources
$ 52,111 $ 96,252 $ (44,141)
771,181 - 771,181
- 133,323 (133,323)
$ 823,292 $ 229,575 $ 593,717
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
2018
$ 260,755
2019
260,755
2020
82,452
2121
(10,245)
Total $ 593,717
Payable to the Pension Plan. At September 30, 2017, the City reported $0 payable to the police officers
pension plan.
78
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
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, 2017, was 66. 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.
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.
`A
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
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 2016-2017 fiscal year.
Employees do not contribute to this plan. Contributions to the CWA Pension Plan for the fiscal years
ended September 30, 2015, 2016 and 2017 were $217,916, $200,889 and $204,035 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, 2017, there were a total of 18 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 balance.
Annuities. Retirement benefits can be utilized to purchase an annuity.
:1,
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 2016-2017 fiscal year.
Employees do not contribute to this Plan. Contributions to the 401 Defined Contribution Plan for the
fiscal years ended September 30, 2015, 2016 and 2017 were $130,719, $151,891 and $120,879
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, using the
Entry Age Normal (level percentage of pay) Method. The City elected to fund the OPEB obligation on a pay.
as -you -go basis. The general fund portion is calculated to be $4,515 and the enterprise portion is $181.
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.
81
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
The following table shows the components of the City's annual OPEB cost for the year ended September
30, 2017, 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 (1,168)
Net OPEB cost 4,697
Contributions made -
Increase in net OPEB obligation 4,697
Net OPEB obligation, beginning of year 30,434
Net OPEB obligation, end of year $ 35,131
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net
OPEB obligation for fiscal year 2017 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
2015 $ 4,696 0.0% $ 25,718
2016 4,716 0.0% 30,434
2017 4,697 0.0% 35,131
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 $6,147,250, and the ratio of
the UAAL to the covered payroll was 0.8 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.
82
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
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, 2017, 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.
83
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:
84
Discretionary
Riverfront
General Capital
Nonmajor
General Fund
Sales Tax
Redevelopment
Projects
Funds
Total
Nonspendable:
Inventory
$ 55,008
$
$
$
$ $
55,008
Prepaids
187,497
187,497
Long-term advances
100,000
100,000
Permanent fund corpus
-
941,061
941,061
Total nonspendable
342,505
941,061
1,283,566
Restricted for:
Debt service
-
170,357
170,357
Infrastructure
2,643,877
211,004
2,854,881
Redevelopment
-
540,748
-
540,748
Stormwater
-
516,204
516,204
Law enforcement
63,016
-
-
49,226
112,242
Total restricted
63,016
2,643,877
540,748
946,791
4,194,432
Committed for:
Recreational system
development
-
-
-
955,251
955,251
Development of
public parking
39,893
39,893
Total committed
-
995,144
995,144
Assigned for:
Law enforcement events
12,350
-
12,350
Unassigned (deficit)
4,089,275
-
-
(20,550)
(5,820)
4,062,905
Total fund balances,
governmental funds
$ 4,507,146
$ 2,643,877
$ 540,748
$ (20,550)
$ 2,877,176 $
10,548,397
84
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, 2017, was as follows:
Capital assets:
Capital assets not being depreciated
Capital assets being depreciated, net
Related debt:
Notes payable
Capital lease
Net investment in capital assets
17. COMMITMENTS AND CONTINGENCIES
A. Contracts and Other Commitments
Governmental
Business -type
Total
Activities
Activities
$ 8,772,939
$ 339,481
$ 9,112,420
31,863,087
13,299,941
45,163,028
40,636,026
13,639,422
54,275,448
3,175,000
-
3,175,000
-
254,453
254,453
3,175,000
254,453
3,429,453
$ 37,461,026 $ 13,384,969 $ 50,845,995
The City has various contracts and commitments outstanding as of September 30, 2017. In the Capital Projects
Fund, there are contracts for constructing an evidence garage for use by the Police Department, restrooms
and other amenities at the Working Waterfront facility, developing an update to the master plan for the
Airport and an update to the Parks and Recreation Comprehensive Plan.
A summary of these projects at September 30, 2017 is as follows:
Remaining
Total Paid as of Balance at
Total Contract September 30, September 30,
Price 2017 2017
Evidence Garage $ 461,411 $ (246,578) $ 214,833
Working Waterfront 306,535 (73,425) 233,110
Master Plan 291,000 (188,325) 102,675
Comprehensive Plan 19,600 19,600
Total $ 1,078,546 $ (508,328) $ 570,218
85
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86
REQUIRED SUPPLEMENTARY INFORMATION
F
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Single -employer Pension Trust Fund
Schedule of Changes in Net Pension Liability and Related Ratios
Fiscal Year
Fiscal Year
Fiscal Year
Fiscal Year
Fiscal Year
Ending
Ending
Ending
Ending
Ending
September 30,
September 30,
September 30,
September 30,
September 30,
2017
2016
2015
2014
2013
Total pension liability
Service cost
$ 479,778
$ 418,143
$ 403,611
$ 396,146
$ 367,653
Interest on total pension liability
1,179,511
1,027,558
979,259
914,243
853,018
Change in excess state money
22,218
24,386
-
Changes of benefit terms
613,973
-
(4,316)
-
Differences between expected and actual experience
20,758
59,175
(240,633)
Changes of assumptions
382,825
626,069
223,200
Benefit payments, including refunds of employee contributions
(495,629)
(493,765)
(496,363)
(452,892)
(465,435)
Net change in total pension liability
2,181,216
1,637,180
886,976
881,883
755,236
Total pension liability, beginning of year
15,071,285
13,434,105
12,547,129
11,665,246
10,910,010
Total pension liability, end of year
17,252,501
15,071,285
13,434,105
12,547,129
11,665,246
Plan fiduciary net position
Employer contributions
337,201
322,998
320,179
401,103
396,603
State contributions
168,628
169,027
145,700
147,868
145,961
Employee contributions
177,585
167,309
161,270
160,494
154,683
Pension plan net investment income (loss)
1,381,392
1,067,139
(60,326)
951,910
1,029,818
Benefit payments
(495,629)
(493,765)
(496,363)
(452,892)
(465,435)
Administrative expense
(55,368)
(28,025)
(39,673)
(27,815)
(32,153)
Net change in plan fiduciary net position
1,513,809
1,204,683
30,787
1,180,668
1,229,477
Plan fiduciary net position, beginning of year
12,488,710
11,284,027
11,253,240
10,072,572
8,843,096
Plan fiduciary net position, end of year
14,002,519
12,488,710
11,284,027
11,253,240
10,072,573
Net pension liability
$ 3,249,982
$ 2,582,575
$ 2,150,078
$ 1,293,889
$ 1,592,673
Plan fiduciary net position as a percentage of total pension liability
81.16%
82.86%
84.00%
89.69%
86.35%
Covered payroll
$ 2,438,012
$ 2,263,866
$ 2,154,612
$ 2,106,767
$ 2,131,399
Net pension liability as a percentage of covered payroll
133.30%
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.
88
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Single -employer Pension Trust Fund
Schedule of Investment Returns
Fiscal Year
Schedule of the Net Pension Liability
Annual Return
September 30,
(1)
2013
11.51%
2014
Plan Net
2015
-0.45%
2016
9.39%
2017
10.90%
Position as a
Net Pension
Fiscal Year
Percentage of
Liability as a
Ending
Total Pension
Plan Net
Net Pension
Total Pension
Percentage of
September 30,
Liability
Position
Liability
Liability
Covered Payroll
Covered 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%
2,154,612
119.86%
2017
17,252,501
14,002,519
3,249,982
81.16%
2,438,012
133.30%
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,
(1)
2013
11.51%
2014
9.42%
2015
-0.45%
2016
9.39%
2017
10.90%
(') 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.
89
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Single -employer Pension Trust Fund
Additionally, it is assumed that 75% of disablements and active
Schedule of Contributions
Actual
Termination rates
Contribution
Fiscal Year Actuarially
Contribution as Percentage
Ending Determined
30, ContributiSM
City State Deficiencycovered of Covered
ontribution (Excess)jA � Payrol Payroll
_Contribution _Contribution
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%
2017 768,277
337,201 168,628 262,448 2,438,012 20.75%
Notes to Schedule of Contributions
Years 2-14 7.40%
Valuation date
October 1, 2016
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
Individual entry age normal actuarial cost
Amortization method
Level percentage of pay, closed
Remaining amortization period
29 Years (as of October 1, 2015)
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
Payroll growth
improvements. (Disabled lives set forward 5 years).
Interest rate
7.60% per year compounded annually, net of investment related expenses
Inflation
2.30% per year
Retirement age
Earlier of: 1) 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:
Assumption
30 0.12%
40 0.21%
50 0.54%
60 2.70%
Additionally, it is assumed that 75% of disablements and active
90
Member deaths are service related.
F
Termination rates
�Credite
Service ` Ass
First two years 14.00%
Years 3-9 5.70%
Years 10-14 2.80%
15 years and
Greater 0.00%
Credited
Salary increases
'
SAssumption
ervice
First year 16.00%
Years 2-14 7.40%
15 years and
Greater 3.80%
-ad
Final salary load
umption
Wo
5 or more year 20.00%
More than 2,
less then 5
years 10.00%
Less than 2 years 0.00%
Payroll growth
3% for amortization of all UAAL bases
Actuarial asset method
Market Value, net of investment -related expenses
90
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Other Postemployment Benefits Plan
91
UAAL as a
Schedule
of Funding Progress
of Covered
Payroll
Payroll
Actuarial
((b -a) / c) 1
$ 6,424,614
1.5%
6,426,614
Accrued
5,933,331
0.9%
5,693,181
Actuarial
Liability
Unfunded
6,213,151
Actuarial
Value of
(AAL) -
AAL Funded
0.8%
Valuation
Assets
Entry Age
(UAAL) Ratio
Fiscal Year
Date
1 (a)
(b)
(b -a) (a / b)
2010
10/1/2009
$
$ 98,100 $
98,100
2011
10/1/2010
67,500
67,500
2012
10/1/2010
50,901
50,901
2013
10/1/2013
50,901
50,901
2014
10/1/2014
50,901
50,901
2015
10/1/2015
50,901
50,901
2016
10/1/2015
50,901
50,901
2017
10/1/2015
50,901
50,901
Schedule of
Employer Contributions
Fiscal P
Annual ' w
Year Ending
Required Percentage
September 30, Contributions Contributed
2010 $
4,600 0%
2011
4,700 0%
2012
3,800 0%
2013
3,674 0%
2014
4,207 0%
2015
5,024 0%
2016
5,024 0%
2017
5,024 0%
91
UAAL as a
Percentage
Covered
of Covered
Payroll
Payroll
11111MIllj�
((b -a) / c) 1
$ 6,424,614
1.5%
6,426,614
1.1%
5,933,331
0.9%
5,693,181
0.9%
6,044,900
0.8%
6,213,151
0.8%
6,561,930
0.8%
6,147,250
0.8%
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Informati
Coastal Florida Public Employees Association Pension Plan
Schedule of Employer Contributions
Fiscal Annual
Year Ending Required
September 30, Contributions
2007
$ 254,909
2008
241,718
2009
254,997
2010
234,219
2011
223,113
2012
210,258
2013
202,612
2014
204,361
2015
217,916
2016
200,889
2017
204,035
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.
92
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
CITY OF SEBASTIAN, FLORIDA
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2017
Special Revenue Funds
94
Local
Law
Option
Parking
Recreation
Stormwater
Enforcement
Gas Tax
In -Lieu -of
Impact Fee
Utility
Forfeiture
Assets
Cash and cash equivalents
$ 221,727
$ -
$ 758,998
$ 255,319
$ 14,572
Investments
-
39,893
196,253
-
34,654
Due from other governments
61,171
-
-
11,284
-
Total assets
$ 282,898
$ 39,893
$ 955,251
$ 266,603
$ 49,226
Liabilities
Accounts payable and accrued liabilities
71,894
-
-
-
-
Due to other funds
-
Total liabilities
71,894
Fund balances
Nonspendable
-
-
-
Restricted
211,004
-
-
266,603
49,226
Committed
-
39,893
955,251
-
-
Unassigned
-
-
-
-
-
Total fund balances
211,004
39,893
955,251
266,603
49,226
Total liabilities and
fund balances
$ 282,898
$ 39,893
$ 955,251
$ 266,603
$ 49,226
94
Debt Service
Capital Projects Funds
Permanent
Discretionary Stormwater
Total
Sales Surtax Utility
Stormwater
Nonmajor
Revenue Note Revenue
Capital
Utility
Governmental
2013 Bonds 2003
Improvements
Improvements
Cemetery
Funds
$ $ 170,357
$ 74
$ 252,924
$ 64,845
$ 1,738,816
-
-
-
876,216
1,147,016
-
49,781
-
-
122,236
$ $ 170,357
$ 49,855
$ 252,924
$ 941,061
$ 3,008,068
-
4,375
3,323
-
79,592
51,300
-
51,300
55,675
3,323
130,892
- - 941,061 941,061
170,357 249,601 - 946,791
- - 995,144
(5,820) (5,820)
170,357 (5,820) 249,601 941,061 2,877,176
$ - $ 170,357 $ 49,855 $ 252,924 $ 941,061 $ 3,008,068
95
CITY OF SEBASTIAN, FLORIDA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2017
96
Special Revenue Funds
Local
Law
Option
Parking
Recreation
Stormwater
Enforcement
Gas Tax
In -Lieu -of
Impact Fee
Utility
Forfeiture
Revenues
Taxes:
Motor fuel
$ 674,778 $
$ $
$
Intergovernmental
12,532
Impact fees
-
102,700
Charges for services
-
992,839
Fines
-
-
-
26,431
Investment earnings
947
468
8,888
9,300
571
Otherrevenues
-
24,945
-
-
1,530
Total revenues
688,257
25,413
111,588
1,002,139
28,532
Expenditures
Current:
Public safety
-
-
-
-
5,476
Physical environment
-
12,016
-
Transportation
120,828
-
-
Culture and recreation
-
14,775
Debt Service:
Principal
215,000
-
Interest and fiscal charges
27,635
-
-
Capital outlay
14,268
44,703
-
-
10,524
Total expenditures
377,731
44,703
14,775
12,016
16,000
Revenues over(under)expenditures
310,526
(19,290)
96,813
990,123
12,532
Other financing sources (uses)
Transfers in
200,000
-
100,000
-
Transfers out
(663,422)
(13,792)
(46,455)
(1,198,076)
Total other financing sources (uses)
(463,422)
(13,792)
(46,455)
(1,098,076)
-
Net change in fund balances
(152,896)
(33,082)
50,358
(107,953)
12,532
Fund balances, beginning of year
363,900
72,975
904,893
374,556
36,694
Fund balances, end of year
$ 211,004 $
39,893
$ 955,251 $
266,603
$ 49,226
96
Debt Service
Capital Projects Funds
Permanent
Discretionary
Stormwater
Total
Sales Surtax
Utility
Stormwater
Nonmajor
Revenue Note
Revenue
Capital
Utility
Governmental
2013
Bonds 2003
Improvements
Improvements
Cemetery
Funds
$
$
$ -
$
$
$ 674,778
61,970
74,502
-
102,700
47,410
1,040,249
-
26,431
(335)
1,316
8,893
30,048
-
-
-
-
26,475
(335)
1,316
61,970
56,303
1,975,183
-
-
-
60,000
-
65,476
25,670
36,383
74,069
-
-
120,828
-
-
14,775
353,000
363,000
931,000
1,519
39,358
-
-
68,512
-
-
63,602
108,539
241,636
354,519
402,358
89,272
204,922
-
1,516,296
(354,854)
(401,042)
(27,302)
(204,922)
56,303
458,887
354,854
402,963
104,390
395,542
-
1,557,749
-
-
-
(23,928)
(112,020)
(2,057,693)
354,854
402,963
104,390
371,614
(112,020)
(499,944)
-
1,921
77,088
166,692
(55,717)
(41,057)
168,436
(82,908)
82,909
996,778
2,918,233
$
$ 170,357
$ (5,820)
$ 249,601
$ 941,061
$ 2,877,176
97
CITY OF SEBASTIAN, FLORIDA
Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Local Option Gas Tax Special Revenue Fund
For the Year Ended September 30, 2017
Revenues
Taxes:
Motor fuel
Intergovernmental
Investment earnings
Total revenues
Expenditures
Current:
Transportation
Debt service:
Principal
Interest and fiscal charges
Capital outlay
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
$ 665,600 $ 665,599 $ 674,778 $ 9,179
12,532 12,532 12,532 -
97 97 947 850
678,229 678,228 688,257 10,029
95,103
180,249
120,828
(59,421)
215,000
215,000
215,000
27,635
27,635
27,635
-
14,268
14,268
337,738
437,152
377,731
(59,421)
340,491
241,076
310,526
69,450
200,000
200,000
200,000
-
(750,000)
(663,422)
(663,422)
(550,000)
(463,422)
(463,422)
-
(209,509)
(222,346)
(152,896)
69,450
363,900
363,900
363,900
-
$ 154,391 $
141,554 $
211,004 $
69,450
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, 2017
Revenues
Investment earnings
Otherrevenues
Total revenues
Expenditures
Capital outlay
Revenues over (under) expenditures
Other financing sources (uses)
Transfers out
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Original
Budget
$ 107 $
19,730
19,837
19,837
19,837
72,975
92,812 $
..A
Final
Budget
107 $
19,730
19,837
44,703
(24,866)
(44,703)
(69,569)
72,975
3,406 $
Actual Over
(Under) Final
Actual Budget
468 $ 361
24,945 5,215
25,413 5,576
44,703 -
(19,290) 5,576
(13,792) 30,911
(33,082) 36,487
72,975 -
39,893 $ 36,487
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, 2017
100
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Impact fees
$ 135,200
$ 135,200 $
102,700
$ (32,500)
Investment earnings
2,112
2,112
8,888
6,776
Total revenues
137,312
137,312
111,588
(25,724)
Expenditures
Current:
Culture and recreation
-
-
14,775
14,775
Revenue over expenditures
137,312
137,312
96,813
(40,499)
Other financing uses
Transfers out
(275,000)
(232,542)
(46,455)
186,087
Net change in fund balances
(137,688)
(95,230)
50,358
145,588
Fund balance, beginning of year
904,893
904,893
904,893
-
Fund balance, end of year
$ 767,205
$ 809,663 $
955,251
$ 145,588
100
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, 2017
Revenues
Charges for services
Investment earnings
Total revenues
Expenditures
Current:
Physical environment
Revenues over expenditures
Other financing sources (uses)
Transfers in
Transfers out
Other financing uses
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
20,000
20,000
12,016
Actual Over
Original
Final
990,123
(Under) Final
Budget
Budget
Actual
Budget
$ 993,000
$ 993,000
$ 992,839
$ (161)
3,875
3,875
9,300
5,425
996,875
996,875
1,002,139
5,264
20,000
20,000
12,016
(7,984)
976,875
976,875
990,123
13,248
163,125
221,199
100,000
(121,199)
(1,140,000)
(1,198,074)
(1,198,076)
(2)
(976,875)
(976,875)
(1,098,076)
(121,201)
-
-
(107,953)
(107,953)
374,556
374,556
374,556
$ 374,556 $
374,556 $
266,603 $
(107,953)
101
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, 2017
102
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Fines
$ 1,000
$ 1,000
$ 26,431
$ 25,431
Investment earnings
145
145
571
426
Otherrevenues
-
1,230
1,530
300
Total revenues
1,145
2,375
28,532
26,157
Expenditures
Current:
Public safety
-
-
5,476
5,476
Capital outlay
1,230
10,524
9,294
Total expenditures
-
1,230
16,000
14,770
Net change in fund balance
1,145
1,145
12,532
11,387
Fund balance, beginning of year
36,694
36,694
36,694
-
Fund balance, end of year
$ 37,839
$ 37,839
$ 49,226
$ 11,387
102
CITY OF SEBASTIAN, FLORIDA
Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Discretionary Sales Surtax Revenue Bonds 2013 Debt Service Fund
For the Year Ended September 30, 2017
Revenues
Investment earnings
Expenditures
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Revenues 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
$ 1,591 $ 1,591 $
706,000
4,554
710,554
(708,963)
352,927
(356,036)
$ (356,036) $
103
706,000
4,554
710,554
(708,963)
352,927
(356,036)
(356,036) $
Actual Over
(Under) Final
Actual Budget
(335) $ (1,926)
353,000
1,519
354,519
(354,854)
(353,000)
(3,035)
(356,035)
354,109
354,854 1,927
- 356,036
$ 356,036
CITY OF SEBASTIAN, FLORIDA
Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Stormwater Utility Revenue Bonds Debt Service Fund
For the Year Ended September 30, 2017
Revenues
Investment earnings
Expenditures
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Revenues 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
$ 112 $ 112 $
Actual Over
(Under) Final
Actual Budget
1,316 $ 1,204
363,000
363,000
363,000
-
40,132
40,132
39,358
(774)
403,132
403,132
402,358
(774)
(403,020)
(403,020)
(401,042)
1,978
403,020
403,020
402,963
(57)
-
-
1,921
1,921
168,436
168,436
168,436
-
$ 168,436 $
168,436 $
170,357 $
1,921
104
AGENCY FUND
105
CITY OF SEBASTIAN, FLORIDA
Combining Statement of Changes in Assets and Liabilities
Agency Fund
For the Year Ended September 30, 2017
Balance Balance
October 1, September 30,
2016 Additions Deletions 2017
Performance Deposits
Assets
Cash and cash equivalents $ 32,841 $ $ (25,911) $ 6,930
Investments, at fair value 73,750 73,750
Total assets $ 106,591 $ $ (25,911) $ 80,680
Liabilities
Performance deposits held in escrow $ 106,591 $ $ (25,911) $ 80,680
106
CAPITAL ASSETS
107
CITY OF SEBASTIAN, FLORIDA
Comparative Schedule by Source
Capital Assets Used in the Operation of Governmental Funds
September 30, 2017
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
108
2017 2016
$ 8,391,050
$ 8,319,588
13,342,052
13,110,829
6,871,238
6,869,838
9,644,089
8,668,356
42,100,211
39,938,233
381,889
227,035
$ 80,730,529 $ 77,133,879
$ 4,507,200
$ 4,550,000
2,852,055
2,750,000
507,031
725,000
13,039,005
11,100,000
97,815
87,000
2,432,716
2,200,000
8,347,685
6,600,000
2,693,061
2,200,000
592,753
485,000
2,938,942
2,600,000
23,648,358
22,100,000
4,376,938
7,375,000
13,816,786
13,850,000
90,621
36,879
789,563
475,000
$ 80,730,529 $ 77,133,879
CITY OF SEBASTIAN, FLORIDA
Schedule by Function and Activity
Capital Assets Used in the Operation of Governmental Funds
September 30, 2017
Functions / Programs
General government:
Legislative
City manager
City clerk
Administrative services
MIS
Audio visual/ broadcast
Facilities maintenance
Community development
Non -departmental
Total general government
Public safety:
Special operations
Administration
School resource
Road patrol
Community policing
Code enforcement
Investigations
Support services
Communications
Building department
Total public safety
Transportation:
Engineering
Central garage
Roads and drainage
Total transportation
Economic environment:
Non -departmental
Physical environment:
Stormwater
Cemetery
Total physical environment
Culture/ recreation:
Parks and recreation
Total
Construction in progress
Total
Land
Machinery
Non -Building and
Buildings Improvements Equipment Infrastructure
5,841
795,885
- 84,426
3,718,391 6,184,989
3,718,391 7,071,141
9,560 3,347,152
9,560 3,347,152
- 130,489
47,125 166,909
47,125 297,398
1,100
56,151
21,187
126,636
205,074
89,320
1,700
16,404
107,424
115,231
1,087,624
1,202,855
2,308,392 1,040,590 6,562
49,954
4,003
49,254
623,753
307,888
275,468
52,944
204,375
1,567,639
38,621
416,014
42,661
2,934,173
13,863
54,856
254,273
50,516
272,358
20,106
4,097,441
109,158
213,687
1,017,528
1,340,373
52,700
52,700
2,257
674
20,119,105
20,122,036
- - 3,870 1,972,608 19,828,160
572,181 201,153 78,354 67,316 22,717
572,181 201,153 82,224 2,039,924 19,850,877
1,735,401 1,384,618 5,267,099 598,712 2,074,598
$ 8,391,050 $ 13,342,052 $ 6,871,238 $ 9,644,089 $ 42,100,211
109
Total
49,954
4,003
50,354
685,745
307,888
1,092,540
137,370
10,287,091
12,614,945
38,621
3,862,046
42,661
2,934,173
13,863
54,856
255,973
50,516
288,762
20,106
7,561,577
111,415
460,081
22,438,291
23,009,787
3,355,544
21,804,638
941,721
22,746,359
11,060,428
80,348,640
381,889
$ 80,730,529
CITY OF SEBASTIAN, FLORIDA
Schedule of Changes by Function and Activity
Capital Assets Used in the Operation of Governmental Funds
September 30, 2017
Capital Assets
Capital Assets
October 1,
Transfers
Transfers
September 30,
Functions / Programs
2016
Additions
Disposals
In
Out
2017
General government:
Legislative
$ 784
$ $
$ -
$ 784
$ -
City manager
24,443
25,511
-
49,954
City clerk
235,585
-
231,582
4,003
Administrative services
49,004
1,350
-
-
50,354
MIS
650,218
21,763
7,331
33,215
12,120
685,745
Audio visual/ broadcast
35,819
28,367
-
243,702
-
307,888
Facilities maintenance
872,134
220,561
1,284
1,129
-
1,092,540
Community development
146,382
-
975
-
8,037
137,370
Non -departmental
10,215,628
71,463
-
-
-
10,287,091
Total general government
12,229,997
343,504
9,590
303,557
252,523
12,614,945
Public safety:
Special operations
43,532
-
4,911
-
-
38,621
Administration
3,862,593
9,294
9,841
3,862,046
School resource
42,661
-
-
-
42,661
Road patrol
2,746,835
336,061
124,500
24,223
2,934,173
Community policing
13,863
-
-
-
13,863
Code enforcement
54,856
-
-
-
54,856
Investigations
265,880
5,188
13,795
1,300
255,973
Support services
50,516
-
-
-
50,516
Communications
225,373
63,389
288,762
Building department
20,106
-
-
-
20,106
Total public safety
7,326,215
413,932
153,047
-
25,523
7,561,577
Transportation:
Engineering
6,478
79,187
27,225
53,349
374
111,415
Central garage
445,011
28,570
13,500
-
-
460,081
Roads and drainage
20,564,290
2,039,548
87,061
374
78,860
22,438,291
Total transportation
21,015,779
2,147,305
127,786
53,723
79,234
23,009,787
Economic environment:
Non -departmental
3,355,544
-
-
-
-
3,355,544
Physical environment:
Stormwater
21,376,799
432,074
4,235
21,804,638
Cemetery
822,824
119,134
237
941,721
Total physical environment
22,199,623
551,208
4,472
22,746,359
Culture/ recreation:
Parks and recreation
10,779,686
285,428
4,686
11,060,428
Total
76,906,844
3,741,377
299,581
357,280
357,280
80,348,640
Construction in progress
227,035
3,896,230
3,741,376
381,889
Total
$ 77,133,879
$ 7,637,607 $
4,040,957
$ 357,280
$ 357,280
$ 80,730,529
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
2017 2016 2015 2014 2013
$ 37,461,026 $ 35,886,087 $ 35,220,857 $ 35,210,526 $ 32,038,749
5,113,543 5,209,372 4,997,724 5,115,627 5,839,440
1,236,088 3,615,777 3,467,014 3,330,400 4,577,440
$ 43,810,657 $ 44,711,236 $ 43,685,595 $ 43,656,553 $ 42,455,629
$13,384,969 $ 11,989,666 $ 10,517,895 $ 10,439,804 $ 10,846,501
(1,008,976) (717,053) 67,779 (103,116) (306,497)
$ 12,375,993 $ 11,272,613 $ 10,585,674 $ 10,336,688 $ 10,540,004
$ 50,845,995 $ 47,875,753 $ 45,738,752 $ 45,650,330 $ 42,885,250
5,113,543 5,209,372 4,997,724 5,115,627 5,839,440
227,112 2,898,724 3,534,793 3,227,284 4,270,943
$ 56,186,650 $ 55,983,849 $ 54,271,269 $ 53,993,241 $ 52,995,633
114
Table 1 - Unaudited
Fiscal Year
2012 2011 2010 2009 2008
$ 31,500,173 $ 31,541,953 $ 28,938,587 $ 26,744,896 $ 24,133,550
6,192,777 5,668,155 8,757,043 8,197,018 9,215,801
3,607,228 4,052,751 3,889,011 4,502,440 5,035,184
$ 41,300,178 $ 41,262,859 $ 41,584,641 $ 39,444,354 $ 38,384,535
$ 11,181,823 $ 11,850,561 $ 11,389,704 $ 10,725,676 $ 9,111,251
- - 98,320 570,149
(490,298) (644,620) (342,340) 86,517 753,076
$ 10,691,525 $ 11,205,941 $ 11,047,364 $ 10,910,513 $ 10,434,476
$ 42,681,996 $ 43,392,514 $ 40,328,291 $ 37,470,572 $ 33,244,801
6,192,777 5,668,155 8,757,043 8,295,338 9,785,950
3,116,930 3,408,131 3,546,671 4,588,957 5,788,260
$ 51,991,703 $ 52,468,800 $ 52,632,005 $ 50,354,867 $ 48,819,011
115
CITY OF SEBASTIAN, FLORIDA
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year
2017 2016 2015 2014 2013
Expenses
Governmental activities:
General government
$ 3,379,369
$ 3,285,607
$ 3,015,536
$ 2,923,398
$ 2,784,485
Public safety
6,549,037
5,476,136
5,164,197
4,908,374
4,928,203
Physical environment
3,769,377
2,538,752
2,759,461
2,310,539
2,039,380
Transportation
2,279,149
1,861,946
2,024,814
1,828,569
1,845,429
Economic environment
106,577
364,675
194,630
247,891
155,214
Culture and recreation
1,326,245
1,191,488
1,293,246
1,229,369
1,232,345
Interest on debt
63,141
82,943
100,468
235,071
368,432
Total governmental activities expenses
17,472,895
14,801,547
14,552,352
13,683,211
13,353,488
Business -type activities:
Golf Course
1,537,332
1,584,214
1,409,829
1,406,770
1,377,039
Airport
1,361,134
1,197,549
1,038,361
1,031,464
1,146,905
Building
586,752
546,649
531,087
465,717
417,887
Total business -type activities expenses
3,485,218
3,328,412
2,979,277
2,903,951
2,941,831
Total primary government expenses
20,958,113
18,129,959
17,531,629
16,587,162
16,295,319
Program revenue
Governmental activities:
Charges for services:
General government
362,631
374,581
372,255
407,068
314,158
Public safety
124,800
98,446
80,763
76,132
67,297
Physical environment
1,021,038
1,049,735
1,087,642
1,073,015
1,101,864
Culture and recreation
48,781
53,959
67,940
67,371
70,982
Operating grants and contributions
250,292
323,101
345,937
186,295
332,627
Capital grants and contributions
947,274
809,932
994,546
739,785
770,123
Total governmental activities program revenue
2,754,816
2,709,754
2,949,083
2,549,666
2,657,051
Business -type activities:
Charges for services:
Golf Course
1,058,939
1,135,357
1,333,189
1,277,660
1,302,441
Airport
499,321
516,403
457,318
470,703
481,759
Building
747,950
810,069
712,620
700,751
706,964
Capital grants and contributions
1,566,737
841,668
702,154
235,215
230,868
Total business -type activities program revenue
3,989,002
3,303,497
3,205,281
2,684,329
2,722,032
Total primary government program revenue
6,743,818
6,013,251
6,154,364
5,233,995
5,379,083
Net(expense)revenue
Governmental activities
(14,718,079)
(12,091,793)
(11,603,269)
(11,133,545)
(10,696,437)
Business -type activities
503,784
(24,915)
226,004
(219,622)
(219,799)
Total primary government net
(expense) revenue
$ (14,214,295)
$ (12,116,708)
$ (11,377,265)
$ (11,353,167)
$ (10,916,236)
116
Table 2 - Unaudited
Fiscal Year
2012 2011 2010 2009 2008
$ 2,640,677
$ 2,766,575
$ 3,309,381
$ 3,169,851
$ 3,375,178
5,025,274
5,546,632
5,720,933
5,4202585
5,226,512
2,007,902
1,558,974
1,947,605
1,347,771
1,805,755
1,800,432
2,263,367
1,863,551
3,437,724
2,111,360
170,960
208,518
135,885
167,470
113,101
1,239,512
1,227,198
1,240,383
1,073,249
1,420,734
562,496
546,103
566,410
730,100
634,891
13,447,253
14,117,367
14,784,148
15,346,750
14,687,531
1,394,731
1,355,266
1,388,158
1,477,299
1,488,472
1,166,588
12188,788
1,067,525
1,079,869
1,099,653
397,295
470,406
496,800
533,641
605,422
2,958,614
3,014,460
2,952,483
3,0902809
3,193,547
16,405,867
17,131,827
17,736,631
18,437,559
17,881,078
214,488
197,945
203,915
220,073
353,836
66,474
92,350
118,368
95,606
85,009
876,693
868,059
881,338
908,829
903,285
66,954
61,353
62,046
66,540
83,378
187,333
196,534
210,050
228,002
786,016
791,265
838,242
3,178,618
1,865,174
835,607
2,203,207
2,254,483
4,654,335
3,384,224
3,047,131
1,394,844
1,382,421
1,335,647
1,406,956
1,438,233
491,367
485,229
468,698
438,485
523,989
419,705
401,021
356,264
358,947
347,189
150,083
900,340
904,853
1,356,914
494,098
2,455,999
3,169,011
3,065,462
3,561,302
2,803,509
4,659,206
5,423,494
7,719,797
6,945,526
5,850,640
(11,244,046)
(11,862,884)
(10,129,813)
(11,962,526)
(11,640,400)
(502,615)
154,551
112,979
470,493
(390,038)
$ (11,746,661) $ (11,708,333) $ (10,016,834) $ (11,492,033) $ (12,030,438)
continued...
117
CITY OF SEBASTIAN, FLORIDA
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year
2017 2016 2015 2014 2013
General revenue and other changes in net position
Governmental activities:
Property taxes, levied for general purposes $
4,147,115
$ 3,942,048
$ 3,594,210
$ 3,248,113 $
3,221,304
Sales and use taxes
5,945,386
5,762,921
5,555,270
5,320,051
5,123,046
Franchise fees
1,271,403
1,257,430
1,241,515
1,190,233
1,118,886
State shared revenues not restricted
to specific programs
2,616,522
2,466,546
2,365,137
2,208,700
2,063,450
Investment earnings
135,614
77,317
65,256
43,293
74,650
Miscellaneous
290,269
316,239
240,179
338,901
315,296
Transfers
(588,809)
(705,067)
2,988
(14,822)
(37,734)
Total governmental activities
13,817,500
13,117,434
13,064,555
12,334,469
11,878,898
Business -type activities:
Investment earnings
10,787
6,787
5,368
1,484
4,391
Miscellaneous
-
-
20,602
-
274
Transfers
588,809
705,067
(2,988)
14,822
37,734
Total business -type activities
599,596
711,854
22,982
16,306
42,399
Total primary government general revenue
14,417,096
13,829,288
13,087,537
12,350,775
11,921,297
Change in net position
Governmental activities
(900,579)
1,025,641
1,461,286
1,200,924
1,182,461
Business -type activities
1,103,380
686,939
248,986
(203,316)
(177,400)
Total primary government change in net
position $
202,801
$ 1,712,580
$ 1,710,272
$ 997,608 $
1,005,061
118
Fiscal Year
2012 2011 2010 2009 2008
$ 3,063,495 $
3,453,778
$ 4,164,128
$ 4,801,924
$ 5,149,047
4,852,413
4,751,021
4,765,200
4,670,106
4,753,718
1,124,568
1,184,686
1,228,692
1,327,253
1,199,762
1,934,733
1,868,555
1,825,215
1,821,347
1,989,606
82,129
111,943
144,432
261,203
634,919
201,538
171,119
149,453
140,512
159,300
22,489
-
(7,020)
11,281,365
11,541,102
12,270,100
13,022,345
13,886,352
6,563
4,026
15,658
5,544
54,237
4,125
-
1,194
-
-
(22,489)
-
7,020
-
-
(11,801)
4,026
23,872
5,544
54,237
11,269,564
11,545,128
12,293,972
13,027,889
13,940,589
37,319
(321,782)
2,140,287
1,059,819
2,245,952
(514,416)
158,577
136,851
476,037
(335,801)
$ (477,097) $ (163,205) $ 2,277,138 $ 1,535,856 $ 1,910,151
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
2017 2016 2015
$ 342,505 $ 227,651 $ 316,036 $
2014 2013
369,329 $ 368,564
63,016
46,262
38,544
7,969
28,632
12,350
10,840
8,692
7,129
7,020
4,089,275
5,526,675
5,289,322
5,348,905
5,065,242
4,507,146
5,811,428
5,652,594
5,733,332
5,469,458
941,061
996,778
928,758
1,390,073
1,323,838
4,131,416
4,193,653
4,181,787
3,756,950
4,647,950
995,144
977,868
815,688
625,007
589,364
(26,370)
(129,401)
(58,618)
(64,875)
-
6,041,251
6,038,898
5,867,615
5,707,155
6,561,152
$ 10,548,397
$ 11,850,326
$ 11,520,209
$ 11,440,487
$ 12,030,610
' 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
Fiscal Year
2012 2011 2010 2009 2008
$ 370,450 $ 346,995 $
2,861,708 2,949,139
35,707 21,911
1,734,307 1,784,413 Z
5,002,172 5,102,458
352,248 $ 357,696 $ 381,528
3,063,585
3,083,463
3,502,560
31,656
1,983
33,453
2,164,910
2,324,972
2,390,641
5,612,399
5,768,114
6,308,182
1,289,693 1,494,779 859,463 830,029 771,927
4,371,826 4,748,376 7,897,580 8,557,389 ' 12,446,260
719,686 - - - -
6,381,205 6,243,155 8,757,043 9,387,418 13,218,187
$ 11,383,377 $ 11,345,613 $ 14,369,442 $ 15,155,532 $ 19,526,369
121
CITY OF SEBASTIAN, FLORIDA
Changes in Fund Balances, 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
2017
2016
2015
2014
2013
Revenues
Taxes
$ 10,738,778
$ 10,326,654
$ 9,782,109
$ 9,123,879
$ 8,894,880
Franchise fees
1,271,403
1,257,430
1,241,515
1,190,233
1,118,886
Licenses, fees and permits
135,900
136,614
147,219
138,564
45,500
Intergovernmental
2,991,190
2,709,066
2,742,950
2,373,695
2,411,395
Impact fees
102,700
163,800
281,450
168,350
169,000
Charges for services
1,353,009
1,391,495
1,397,395
1,431,101
1,462,522
Fines
96,842
73,059
63,035
54,140
60,190
Investment earnings
135,614
77,317
65,256
43,293
78,411
Contributions and donations
45,420
80,581
48,124
36,801
22,406
Otherrevenues
290,269
316,239
241,597
338,901
315,296
Total revenues
17,161,125
16,532,255
16,010,650
14,898,957
14,578,486
Expenditures
Current:
General government
2,943,790
3,053,554
2,717,049
2,575,605
2,447,893
Public safety
5,134,388
4,968,258
4,666,343
4,623,060
4,425,000
Physical environment
2,565,532
1,316,697
1,498,706
1,110,788
1,075,162
Transportation
1,333,927
1,168,919
1,187,871
1,165,004
1,158,945
Economic environment
73,491
331,589
161,545
144,612
122,730
Culture and recreation
927,374
849,789
893,394
888,795
847,781
Debt service:
Principal
931,000
1,935,000
1,567,000
2,306,000
1,307,000
Interest
68,512
92,907
108,678
413,995
393,447
Capital outlay
3,896,231
1,780,358
3,133,330
2,246,399
2,115,561
Total expenditures
17,874,245
15,497,071
15,933,916
15,474,258
13,893,519
Revenues over (under) expenditures
(713,120)
1,035,184
76,734
(575,301)
684,967
Other financing sources (Uses)
Issuance of long-term debt
-
-
-
-
-
Transfers in
7,184,858
3,694,279
4,989,726
3,903,204
3,598,949
Transfers out
(7,773,667)
(4,399,346)
(4,986,738)
(3,918,026)
(3,636,683)
Total other financing sources (uses)
(588,809)
(705,067)
2,988
(14,822)
(37,734)
Net change in fund balances
$ (1,301,929)
$ 330,117
$ 79,722
$ (590,123)
$ 647,233
Debt service as a percentage of
noncapitalexpenditures (,)
7.2%
14.8%
13.1%
20.6%
14.4%
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
123
Fiscal Year
2012
2011
2010
2009
2008
$ 8,465,990
$ 8,762,729
$ 9,525,074
$ 10,065,806
$ 10,504,155
1,124,568
1,184,686
1,228,692
1,327,253
1,199,762
22,431
1,121,967
1,154,739
1,186,161
1,209,617
2,088,038
23,646
33,182
29,151
163,471
58,500
81,534
90,948
88,938
65,246
1,158,075
2,249,447
4,572,550
3,270,854
2,674,761
57,575
42,250
26,000
13,975
32,825
86,516
-
-
3,849
-
216,091
103,795
228,216
250,914
647,312
201,888
224,823
169,039
176,430
461,553
13,479,672
13,794,877
17,028,440
16,413, 331
16,958,702
2,410,345
2,539,211
2,699,289
2,976,896
3,087,789
4,523,802
5,030,708
4,938,147
4,926,714
4,677,618
1,042,349
1,166,309
1,210,823
1,448,067
1,368,593
1,208,411
1,217,521
1,405,310
1,696,254
1,545,045
138,531
188,918
129,352
167,470
113,101
876,502
903,836
977,780
1,148,408
1,079,379
3,321,000
1,203,000
2,142,190
1,218,995
1,326,182
472,399
521,152
577,593
706,093
611,554
1,767,058
4,048,051
6,189,026
6,495,271
3,634,910
15,760,397
16,818,706
20,269,510
20,784,168
17,444,171
(2,280,725)
(3,023,829)
(3,241,070)
(4,370,837)
(485,469)
2,296,000
-
2,462,000
-
-
3,694,765
5,376,658
4,486,626
5,196,376
5,679,896
(3,672,276)
(5,376,658)
(4,493,646)
(5,196,376)
(5,679,896)
2,318,489
2,454,980
$ 37,764
$ (3,023,829)
$ (786,090)
$ (4,370,837)
$ (485,469)
27.1%
13.5%
19.3%
13.5%
14.0%
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
2017 2016
$ 390,921 $
479,395 $
334,270
306,381
1,021,038
1,049,735
687,310
656,484
321,277
217,759
2,754,816
2,709,754
Fiscal Year
2015 2014 2013
534,524 $
413,727 $
471,299
254,381
246,010
233,309
1,087,642
1,073,015
1,101,864
643,146
565,692
560,713
-
15,501
-
429,390
235,721
289,866
2,949,083
2,549,666
2,657,051
1,170,591
1,135,357
1,333,189
1,277,660
1,302,441
2,070,461
1,358,071
1,159,472
705,918
712,627
747,950
810,069
712,620
700,751
706,964
3,989,002
3,303,497
3,205,281
2,684,329
2,722,032
$ 6,743,818 $ 6,013,251 $ 6,154,364 $ 5,233,995 $ 5,379,083
' 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
2012 2011 2010 2009 2008
$ 230,550 $
243,039
$ 209,144 $
226,003 $
377,305
228,392
234,437
304,630
299,119
515,997
876,693
930,018
881,338
1,408,829
1,256,277
560,055
743,383
614,305
612,335
619,949
13,998
-
2,556,872
6,000
-
293,519
103,606
88,046
831,938
277,603
2,203,207
2,254,483
4,654,335
3,384,224
3,047,131
1,394,892
1,382,421
1,335,647
1,406,955
1,438,233
641,455
1,385,569
1,373,551
1,795,399
1,018,087
426,215
401,021
356,264
358,948
347,189
2,462,562
3,169,011
3,065,462
3,561,302
2,803,509
$ 4,665,769 $ 5,423,494 $ 7,719,797 $ 6,945,526 $ 5,850,640
125
CITY OF SEBASTIAN, FLORIDA
Tax Revenues by Source
Governmental Funds
For the Last Ten Fiscal Years
(Rate per $1,000 of assessed value)
Table 6 - Unaudited
1 Property taxes comprise the City's largest and most significant own -source revenue.
z Public utility taxes include a 10% tax on electric, water, gas and propane purchases.
3 Sales taxes are a one -cent tax on the first $5,000 sales price of any single taxable item.
126
Property
Public
Sales
Motor
Millage
Tax Year
Fiscal Year
Taxes'
utility 2
Tax 3
Fuel
Total
Rate
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
2016
2017
4,147,115
2,708,980
3,207,905
674,778
10,738,778
3.8000
1 Property taxes comprise the City's largest and most significant own -source revenue.
z Public utility taxes include a 10% tax on electric, water, gas and propane purchases.
3 Sales taxes are a one -cent tax on the first $5,000 sales price of any single taxable item.
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 Tax Collector'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
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
5.9468
7.9550
7.9550
1.69930
2016
2017
3.8000
0.0000
3.8000
5.9755
7.4100
7.4100
1.51700
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 Tax Collector'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
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
2016
2017
1,578,743,546
1,973,429,433
Source: Indian River County Property Appraiser
80%
67.8%
70%
60% 1.2%
50%
40%
30%
20%
10%
0o/
Ratio of Taxable to Actual Value
Personal Property
Assessed
Estimated
Value
Actual Value
64,899,942
$ 64,899,942
62,476,508
62,476,508
56,920,223
56,920,223
55,234,086
55,234,086
48,922,492
48,922,492
47,410,545
47,410,545
53,045,209
53,045,209
55,646,868
55,646,868
59,305,756
59,305,756
62,277,711
62,277,711
55 n0i x3.596
4 4 •
52.6% 54.1% 55.0% 55.5% 56.7?(
o
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Fiscal Year
128
Table 8 - Unaudited
Less:
Total
Total
Ratio of
Tax -Exempt
Taxable
Estimated
Taxable to
Property
Value
Actual Value
Actual Value
$ 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%
486,428,425
1,154,592,832
2,035,707,144
56.7%
129
CITY OF SEBASTIAN, FLORIDA Table 9 - Unaudited
Principal Property Taxpayers
Current Year and Nine Years Ago
Concentration of 2017 Taxpayers
92.93%
7.07%
■Top Ten Taxpayers
130
BAII Other Taxpayers
2017 Fiscal Year
2008 Fiscal Year
Percentage
Percentage
of Total City
of Total City
Taxable
Taxable
Taxable
Taxable
Taxpayer
Value
Rank
Value
Value
Rank
Value
Florida Power 8 Light (Utility/Electric)
$ 23,600,954
1
2.04 %
$ 15,508,499
1
1.18 %
Comcast of Florida, Inc. (Communications)
9,479,934
2
0.82
-
-
-
Wal-Mart Stores, Inc. (Retail)
8,463,707
3
0.73
14,155,041
2
1.07
Sebastian Senior Real Estate, LLC (Senior Group Home)
7,925,066
4
0.69
-
-
-
Park Place Community, LLC (Rental/Retail)
6,606,477
5
0.57
7,620,573
8
0.58
PSM Sebastian, LLC
6,159,680
6
0.53
8,089,710
6
0.61
BW US 1, Inc. (Commercial)
6,139,869
7
0.53
7,361,730
9
0.56
Hartwell Groves, Inc. (Agriculture)
4,558,541
8
0.39
-
-
-
CREARX
4,544,251
9
0.39
Sebastian Inlet Marina Et Trading Co, Inc.
(Restaurant/ Hotel)
4,406,676
10
0.38
Chance Holding LLC (Development)
-
-
-
9,358,870
3
0.71
IPF/Sebastian LLC (Retail)
8,606,240
4
0.65
KB Homes Treasure Coast LLC (Construction)
8,227,760
5
0.62
Bellsouth Communications (Utility/Telephone)
7,772,461
7
0.59
Sebastian Crossing LLC (Construction)
6,741,200
10
0.51
$ 81,885,155
7.07 %
$ 93,442,084
7.08 %
Total Taxable Value
$1,154,592,832
$ 1,319,602,616
Source: Indian River County Property Appraiser
Concentration of 2017 Taxpayers
92.93%
7.07%
■Top Ten Taxpayers
130
BAII 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
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
2016
2017
3,943,212
3,726,976 94.52
77,898
3,804,874
96.49
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
0 10
8
6
4 •
2
2008
2009 2010
2011 2012 2013 2014
2015 2016
2017
Fiscal Year
131
CITY OF SEBASTIAN, FLORIDA
Ratios of Outstanding Debt By Type
For the Last Ten Fiscal Years
Table 11 - Unaudited
80.00
60.00
o
4.00
20.00
•
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Fiscal Year
132
Business -Type
Activities
Roadway
Infrastructure
Stormwater Golf Course
Total
Percentage
Fiscal
Improvement
Sales Tax
Utility Revenue Revenue
Primary
of Personal
Per
Year
Notes
Bonds/Notes
Bonds/Notes Bonds
Government
Income
Capita
1
1
2
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
2017
1,263,000
-
1,912,000
3,175,000
3%
131
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.
Primary Government Debt
80.00
60.00
o
4.00
20.00
•
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
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
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
2017
57,729,642
3,175,000
54,554,642
Table 12 - Unaudited
Percentage of
Per
Debt Limit
Capita
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%
2,065
5.50%
2,255
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
$1,641,021,257
Fiscal Year
(486,428,425)
2017
2016
2015
2014
2013
$ 57,729,642
$ 48,340,610
$ 48,340,610
$ 44,250,493
$ 41,034,956
3,175,000
6,041,000
6,041,000
7,608,000
9,914,000
$ 54,554,642
$ 42,299,610
$ 42,299,610
$ 36,642,493
$ 31,120,956
5.50%
12.50%
12.50%
17.19%
24.16%
Legal Debt Margin Calculation for Fiscal Year 2016
Assessed value
$1,641,021,257
Less: Exempt property
(486,428,425)
1,154,592,832
Debt limit (5% of assessed value)
57,729,642
Debt applicable to limit:
Revenue bonds/notes
3,175,000
Total net debt applicable to limit 3,175,000
Legal debt margin $ 54,554,642
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, 2017.
134
Table 13 - Unaudited
Fiscal Year
2012 2011 2010 2009 2008
$ 43,872,903 $ 49,337,437 $ 57,457,057 $ 65,980,131 $ 89,250,274
11,221,000 12,246,000 13,449,000 13,129,203 14,348,197
$ 32,651,903 $ 37,091,437 $ 44,008,057 $ 52,850,928 $ 74,902,077
25.58% 24.82% 23.41% 19.90% 16.08%
135
CITY OF SEBASTIAN, FLORIDA
Pledged Revenue Coverage
For the Last Ten Fiscal Years
Coverage 3
0.91
0.37
0.66
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 was 1.35. Bank notes were used in 2011 to refund the bonds.
136
Recreational Facilities Improvement and Refunding Revenue Bonds, Series 2001
Debt Service
Less:
Net
Fiscal
Gross
Operating
Available
Year
Revenue'
Expenses7
Revenue
Principal
Interest
Total
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
2017
Coverage 3
0.91
0.37
0.66
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 was 1.35. Bank notes were used in 2011 to refund the bonds.
136
13
Table 14 - Unaudited
Stormwater Utility Revenue Bonds, Series 2003
Debt Service
Gross
Revenues4
Principal
Interest
Total
Coverage 5
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
4,710
9.8
7.1
3,751
Personal
Per
5,167
14.5
11.3
Income
Capita
Median
5,208
11.8
(thousands
Personal
Household
Year
Population
of dollars)'
Income'
Income'
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
10,380,777
68,491
47,446
2017
24,192
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
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
6,122
4.3
3.7
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
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
170.38
1,037,687,270
171.43
1,154,592,832
139
CITY OF SEBASTIAN, FLORIDA
Principal Employers
Current Year and Nine Years Ago
Employer Employees
School District of Indian River County (Government)
2,073
Indian River Medical Center (Healthcare)
1,753
Publix Supermarkets (Food/Beverage)
1,250
Indian River County (Government)
820
Piper Aircraft, Inc. (Manufacturer)
720
Sebastian River Medical Center (Healthcare)
595
John's Island (Residential/ Resort)
584
Medical Data Systems (Collection Agency)
500
City of Vero Beach (Government)
409
Visiting Nurse Association (Healthcare)
396
Wal-Mart (Retail)
378
Indian River Estates (Retirement/ Life care)
350
CVS Warehouse/ Distri butior (Distribution)
260
Captain Hirams (Restaurant/ Resort'
240
Disney Vero Beach (Resort Hotel)
237
Sun Ag, Inc. (Agricultural)
210
City of Sebastian (Government)
179
Flight Safety International (Education)
155
Grand Harbor Management (Developer)
145
Saint Edward's School (Education)
120
Dodgertown Complex (Sports)
-
Macho Products, Inc./MDI (Manufacture;
11,374
Total Average County Employees 63,597
Source: Indian River County Community Development Report
Note: Principal employers information available for Indian River County Only
140
2017
Percentage of
Total County
Rank Employment
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
3.26
2.76
1.97
1.29
1.13
0.94
0.92
0.79
0.64
0.62
0.59
0.55
0.41
0.38
0.37
0.33
0.28
0.24
0.23
0.19
17.89
Employees
2,295
1,671
1,104
1,706
1,063
565
475
188
561
348
404
442
297
301
235
199
155
312
237
293
185
13,036
52,042
Table 16 - Unaudited
2008
Percentage of
Total County
Rank Employment
1
4.41
3
3.21
4
2.12
2
3.28
5
2.04
6
1.09
8
0.91
19
0.36
7
1.08
11
0.67
10
0.78
9
0.85
14
0.57
13
0.58
17
0.45
18
0.38
-
0.30
12
0.60
16
0.46
15
0.56
20
0.36
25.06
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141
CITY OF SEBASTIAN, FLORIDA
Full -Time Equivalent City Government Employees By Function/Program
For the Last Ten Fiscal Years
142
Full-time Equivalent Employees as of September 30
Function
2017
2016
2015
2014
2013
2012
General government
City council
2.5
2.5
2.5
2.5
2.5
2.5
City manager
2.5
2.5
2.0
2.0
2.0
2.0
City clerk
2.5
3.0
5.0
5.0
3.0
3.0
City attorney
-
-
-
-
-
-
Administrative Services
6.0
4.0
5.5
5.5
5.0
5.0
Finance
-
-
-
-
-
-
Management information
2.0
2.0
2.0
2.0
3.0
3.0
Audio/visual
2.5
1.0
-
-
-
-
Human resources
-
-
-
-
-
-
Facilities maintenance
2.5
3.5
5.0
5.0
4.0
3.0
Community development
3.0
2.0
4.0
4.0
3.0
3.0
Public safety
Police
57.5
57.5
57.0
57.0
55.5
55.0
Building
5.0
5.0
5.0
5.0
5.0
4.0
Code enforcement
3.0
3.0
3.0
3.0
3.0
3.0
Transportation
Roads and drainage
11.5
11.0
10.0
10.0
10.0
10.0
Fleet management
3.5
3.5
3.5
3.5
3.5
3.5
Airport
3.0
1.0
1.0
1.0
2.0
3.0
Physical environment
Cemetery
1.5
2.0
2.0
2.0
2.0
1.0
Engineering
-
-
-
-
-
-
Stormwater utility
8.0
9.0
9.0
9.0
9.0
9.0
Culture and recreation
Parks and recreation
18.0
19.0
20.0
20.0
20.0
20.0
Golf course
13.0
10.0
10.0
10.0
10.0
10.0
Total
147.5
141.5
146.5
146.5
142.5
140.0
Source: City of Sebastian, Florida 2008-2017 Annual Budgets
Method: Using 1.0 for each full-time employee and 0.5 for each part-time and seasonal employee.
142
Table 17 - Unaudited
Full-time Equivalent Employees as of September 30
2011 2010 2009 2008
2.5
2.5
2.5
2.5
2.0
2.5
2.5
2.5
3.0
3.0
3.0
3.0
-
-
2.0
2.0
5.0
5.0
-
-
-
-
5.0
5.0
4.0
3.0
3.0
3.0
-
-
2.0
3.0
2.0
2.0
2.0
2.0
4.0
5.0
5.0
5.0
58.0
58.0
59.0
58.0
5.0
5.0
5.0
6.0
3.0
2.5
2.5
2.5
12.0
12.0
10.0
10.0
2.5
3.5
3.5
2.5
3.0
3.0
3.0
3.0
1.0
2.0
2.0
2.0
-
-
7.0
7.0
12.0
12.0
11.0
13.0
21.0
23.0
23.5
23.5
10.5
10.5
9.0
9.0
150.5
154.5
162.5
164.5
143
CITY OF SEBASTIAN, FLORIDA
Operating Indicators By Function/Program
For the Last Ten Fiscal Years
Fiscal Year
Function 2017 2016 2015 2014
General government
Number of annexations approved
Acres of annexed property - - -
Purchase orders issued 289 328 254 242
Public Safety
Police
Physical arrests
356
258
287
347
Traffic violations
3,192
3,065
3,725
41587
Parking violations
49
73
60
29
Building
Construction permits issued
147
191
142
175
Estimated value of construction (in millions) $
37.2 $
43.4 $
40.6 $
40.0 $
Transportation
Road maintenance (man hours)
250
250
200
200
Asphalt for road maintenance (tons)
20
20
10
20
Physical environment
Cemetery
Cemetery internments
62
61
71
67
Grave deeds sold
29
39
43
47
Stormwater
Swales maintained (miles)
300
300
300
280
Ditches maintained (miles)
80
75
75
50
Road crossings maintained
70
68
68
68
Culture and recreation
Program participants
6,268
7,280
7,647
71571
Number of discount cards
657
631
653
653
Number of golf course memberships
119
127
93
84
Average daily golf revenue $
3,100 $
3,100 $
3,653 $
3,500 $
Sources: City of Sebastian Police Department, Growth Management, Public Works, Golf Course and Building Department.
' New commercial and residential only.
144
2013
2
4.00
233
440
4,491
80
170
35.9
300
30
65
38
280
50
50
8,113
710
86
3,569
Table 18 - Unaudited
145
Fiscal Year
2012
2011
2010
2009
2008
1
3
-
-
5.90
26.00
-
201
228
216
288
254
441
500
487
543
662
4,319
5,941
4,083
4,849
4,418
167
242
87
50
208
66
51
36
23
55
14.7 $
10.2
$ 6.6 $
5.1
$ 13.3
500
700
1,264
600
538
50
50
103
328
358
65
54
66
74
68
38
34
33
39
46
280
280
280
280
280
50
50
50
50
50
50
40
40
30
30
9,713
8,649
11,701
13,465
12,910
786
735
844
879
950
88
94
96
95
97
3,822 $
3,787
$ 3,673 $
4,000
$ 3,988
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
2017
2016
2015
2014
2013
General Government
Square footage occupiec
21,500
21,500
21,500
21,500
21,500
Departmental vehicles
6
4
5
5
6
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
71
70
66
62
61
Building inspector vehicles
4
4
4
3
3
Transportation
Streets (miles)
156
156
156
156
156
Streetlights'
1,100
1,085
1,085
1,085
1,080
Airport vehicles
4
4
3
1
1
Public service vehicles
12
12
12
15
17
Physical environment
Public service vehicles
19
17
17
10
10
Culture and recreation
Parks vehicles
5
6
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
12
9
12
Golf course vehicles
-
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
2012
2011
2010
2009
2008
21,500
21,500
21,500
21,500
21,500
1
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
66
67
63
63
62
3
3
3
4
4
156
156
156
156
156
1,228
1,236
1,230
1,240
1,229
1
1
1
1
1
17
19
22
18
23
9
9
15
7
11
18
18
18
18
15
2
2
2
2
2
315.01
315.01
315.01
233.79
233.79
4,859
4,859
4,859
4,859
4,859
13
14
13
13
13
1
1
1
1
1
147
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148
INTERNAL CONTROL AND COMPLIANCE
149
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150
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
March 20, 2018
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, 2017, and the related notes to the financial statements, which collectively comprise the City's
basic financial statements, and have issued our report thereon dated March 20, 2018.
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.
151
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
152
%JR,ehmann
INDEPENDENT AUDITORS'
MANAGEMENT LETTER
March 20, 2018
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
We have audited the financial statements of the City of Sebastian, Florida as of and for the fiscal year
ended September 30, 2017 and have issued our report thereon dated March 20, 2018.
Auditors' 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; Independent Auditor's Report on Compliance for Each Major State
Project and Report on Internal Control over Compliance; Schedule of Findings and Questioned Costs;
and Independent Accountant's Report on an examination conducted in accordance with AICPA
Professional Standards, AT -C Section 315, regarding compliance requirements in accordance with
Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are
dated March 20, 2018, 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.
153
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 and Management
Section 10.554(1)(i)5.a., Rules of the Auditor General, requires that we report the results of our
determination as to whether or not the City of Sebastian, Florida has met one or more of the conditions
described in Section 218.503(1), Florida Statutes, and identification of the specified condition(s) met.
In connection with our audit, we determined that the City of Sebastian, Florida did not meet any of the
conditions described in Section 218.503(11. Florida Statutes.
Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial
condition assessment procedures. It is management's responsibility to monitor the City of Sebastian,
Florida's financial condition, and our financial condition assessment was based in part on
representations made by management and the review of financial information provided by same.
Section 10.554(1)(i)2., Rules of the Auditor
recommendations to improve financial management
such recommendations.
Annual Financial Report
General, requires that we communicate any
. In connection with our audit, we did not have any
Section 10.554(1)(i)5.b., and 10.556(7) Rules of the Auditor General, require us to apply appropriate
procedures and communicate the results of our determination as to whether the annual financial
report for the City of Sebastian, Florida for the fiscal year ended September 30, 2017, 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, 2017. In
connection with our audit, we determined that these two reports were in agreement.
Special District Component Units
Section 10.554(1)(i)5.d. Rules of the Auditor General, requires, if appropriate, that we communicate
the failure of a special district that is a component unit of a county, municipality, or special district, to
provide 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 did not note any special district
component units that failed to provide the necessary information for proper reporting in accordance
with Section 218.39(3)(b), Florida Statutes.
154
Additional Matters
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with
provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have
occurred, that have an effect on the financial statements that is less than material but warrants the
attention of those charged with governance. In connection with our audit, we did not note 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
155
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156
NR,ehmann
INDEPENDENT ACCOUNTANTS' REPORT
March 20, 2018
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, 2017. 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, 2017.
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.
157