HomeMy WebLinkAbout2008 - 2009For the Fiscal Year October 1, 2008 through September 30, 2009
The photographs on the cover of these financial statements are views of the City of
Sebastian's Indian River Drive/Main Street Renovation Project completed in
Fiscal Year 2009.
These photographs capture the beauty of our new park, with a backdrop of the
Indian River Lagoon. This area is used daily by many of our residents for their
daily walks, fishing off the pier and boat launching.
Elements of this project included land acquisition, a memorial wall, flagpole,
restroom, boat ramp, boat trailer and chamber of commerce parking, roads, cross
walks and sidewalks, directional and educational signage, pavilions, street lights,
landscaping, irrigation, traffic signals, benches and trash receptacles and re-
decking the dock
Funding of this project was made possible by the Florida Inland Navigation
District, the Florida Fish Wildlife Conservation, the Community
Redevelopment Agency and Recreation Impact Fees. Total project cost was
$1,538,378.
Notice to proceed was issued to H D Construction, Inc., on January 20 2009
and the Ribbon Cutting Ceremony was held on July 11 2009.
Photograph provided courtesy of:
Robert Messersmith, Systems Analyst
City of Sebastian
CITY OF
SEBASTIAN, FLORIDA
CITY OF
HOME OF PELICAN ISLAND
Comprehensive Annual Financial Report
For the Year Ended September 30, 2009
CITY COUNCIL
Richard H. Gillmor
Jim Hill
Andrea Coy
Don Wright
Eugene Wolff
Prepared By: Administrative Services Department
Mayor
Vice -Mayor
Councilmember
Councilmember
Councilmember
CRY OF
F
HOME OF PELICAN ISLAND
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INTRODUCTORY SECTION
This section contains the following subsections:
Table of Contents
Letter of Transmittal
Certificate of Achievement for Excellence in
Financial Reporting for Fiscal Year Ended
September 30, 2008
Organizational Chart
List of Officials
i
CITY OF SEBASTIAN, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
SEPTEMBER 30, 2009
TABLE OF CONTENTS
INTRODUCTORY SECTION Page
Table of Contents ii
Letter of Transmittal v
Certificate of Achievement for Excellence in Financial Reporting ix
Organizational Chart x
List of Officials xi
FINANCIAL SECTION
Independent Auditors' Report 3
Management's Discussion and Analysis 5
Basic Financial Statements
Government -wide Financial Statements:
Statement of Net Assets 15
Statement of Activities 16
Fund Financial Statements:
Balance Sheet Governmental Funds 18
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds 20
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances
of Governmental Funds to the Statement of Activities 22
Statement of Net Assets Proprietary Funds 23
Statement of Revenues, Expenses, and Changes in Fund Net Assets Proprietary Funds 24
Statement of Cash Flows Proprietary Funds 25
Statement of Fiduciary Net Assets Fiduciary Funds 27
Statement of Changes in Fiduciary Net Assets Fiduciary Fund 28
Notes to Financial Statements 29
Required Supplementary Information:
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and
Actual General Fund 52
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and
Actual Discretionary Sales Tax Special Revenue Fund 53
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and
Actual Riverfront Redevelopment Agency Special Revenue Fund 54
Notes to the Required Supplementary Information Budget Comparisons 55
Police Officers' Pension Plan Schedule of Contributions from the Employer and other
Contributing Entities 56
Combining and Individual Fund Statements and Schedules
Combining Balance Sheet Nonmajor Governmental Funds 60
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor
Governmental Funds 64
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and
Actual Local Option Gas Tax Special Revenue Fund 68
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and
Actual Recreation Impact Fee Special Revenue Fund 69
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and
Actual Stormwater Utility Special Revenue Fund 70
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and
Actual Law Enforcement Forfeiture Special Revenue Fund 71
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Page
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and
Actual Stormwater Utility Revenue Bonds 2003 Debt Service Fund 72
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and
Actual Discretionary Sales Surtax Revenue Bonds 2003 Debt Service Fund 73
Statement of Changes in Assets and Liabilities Agency Fund 74
Capital Assets Used in the Operation of Governmental Funds Comparative
Schedule by Source 75
Capital Assets Used in the Operation of Governmental Funds Schedule
by Function and Activity 76
Capital Assets Used in the Operation of Governmental Funds Schedule of Changes
by Function and Activity 77
STATISTICAL SECTION (Unaudited)
Financial Trends
Net assets by Component Last Nine Fiscal Years 80
Changes in Net Assets Last Nine Fiscal Years 82
Fund Balances, Governmental Funds Last Ten Fiscal Years 86
Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years 88
Program Revenues by Function/Program Last Nine Fiscal Years 90
Revenue Capacity
Tax Revenues by Source, Governmental Funds Last Ten Fiscal Years 92
Property Tax Rates, Direct and Overlapping Governments Last Ten Fiscal Years 93
Assessed Valuation and Estimated True Values of Taxable Property Last Ten Fiscal Years 94
Principal Taxpayers Year 2009 and Year 1998 96
Property Tax Levies and Collections Last Ten Fiscal Years 97
Debt Capacity
Ratios of Outstanding Debt by Type Last Ten Fiscal Years 98
Computation of Legal Debt Margin September 30, 2009 99
Direct and Overlapping Governmental Activities Debt, General Obligation Bonds
September 30, 2009 99
Ratios of General Bonded Debt Outstanding and Legal Debt Margin Last Ten Fiscal Years 100
Pledged Revenue Coverage Last Ten Fiscal Years 102
Economic and Demographic Information
Demographic and Economic Statistics Last Ten Years 104
Principal Employers Year 2009 and 1999 106
Operating Information
Full -time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years 107
Operating Indicators by Function/Program Last Ten Fiscal Years 108
Capital Asset Statistics by Function/Program Last Ten Fiscal Years 109
SINGLE AUDIT SECTION
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 113
Independent Auditors' Management Letter 115
111
1Y OF
HOME OF PELICAN ISLAND
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iv
March 17, 2010
Honorable Mayor and City Council
City of Sebastian, Florida
Dear Council Members:
Profile of the Government
CI1YOF
HOME OF PELICAN ISLAND
We are submitting the Comprehensive Annual Financial Report of the City of Sebastian, Florida for the
fiscal year ended September 30, 2009, as prepared by the City's Administrative Services department.
State law requires that every general purpose local government publish within six months of the close of
each fiscal year a complete set of audited financial statements. This report is published to fulfill that
requirement for the fiscal year ended September 30, 2009.
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, Harris, Cotherman, Jones, Price Associates, has issued an unqualified "clean') opinion
on the City of Sebastian's financial statements for the year ended September 30, 2009. The independent
auditors' report is located on page 3 and 4.
Management's discussion and analysis (MD &A) immediately follows the independent auditors' report
and provides a narrative introduction, overview, and analysis of the basic financial statements. The
MD &A complements this letter of transmittal and should be read in conjunction with it.
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.
The City of Sebastian was first incorporated as the Town of Sebastian in 1924. In the late 1950s General
Development Corporation purchased the land from the Mackle family of Miami and began the
development of a planned community that is now the City of Sebastian. The City has a population of
22,722 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.
v
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 second Tuesday in November and two members are
elected in even numbered years and three members are elected in odd numbered years. Elections are
non partisan and at- large. Mayor and Vice Mayor are elected from among the members of every newly
seated Council at a Special meeting following the election each year. The City has operated under a
Council -City Manager form of government since 1989.
The City provides a wide range of services including general government administration, police
protection, the construction and maintenance of local roads, public works, recreational and cultural
activities, a golf course, a general aviation airport, and a building department to enforce building codes.
This report includes all funds of the City. In evaluating the City as a reporting entity, we have included
all component units for which the City Council is financially accountable. The component units have
been blended with the financial statements presented for the Primary Government because the
component unit's governing body is the same as the City Council or because the component unit
exclusively serves the City. The blended component units are the Riverfront Redevelopment Agency
and the Sebastian Police Officer's Pension Trust Fund.
The Council is required to adopt a final budget no later than the close of the fiscal year. This annual
budget serves as the foundation for the City's financial planning and control. The budget is prepared by
fund, function (e.g., transportation), and department (e.g., public works). Shifts in appropriations within
fund totals may be done administratively on the authority of the City Manager. Total fund appropriation
changes and use of contingency appropriations must be approved by the City Council.
Local Economy
The region (which includes the City of Sebastian and the surrounding unincorporated area within the
same county) has a fluctuating labor force depending on agricultural demand and a strong retirement
community. Although the labor force fluctuates, unemployment in the region steadily declined through
2006 but has significantly increased over the past three years. Retail sales and the service industries
remain the largest sectors of employment in the Sebastian area. The historical overall unemployment
rate for the area over the past ten years and the projected unemployment rate for the next ten years are
greater than that of the State of Florida. This high number indicates that the influx of residents to the
area continues to outpace job creation. 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
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. This attracts a
workforce with a higher than average education and technical skills to the vicinity. The area median age
for 2000 was 49.2 per U.S Census Bureau and median household income for 2007 was $47,563 per the
Florida Research Economic Database.
Long -term Financial Planning
The voters of Indian River County in November 2003 extended the Infrastructure Sales Surtax in the
amount of $.01 per $1.00 sale for an additional fifteen years and seven months beginning in January
2004. This Infrastructure Sales Surtax is estimated to provide the City in excess of $40 million dollars
over the life of the extension for the City's emergency vehicle and capital improvement needs.
In addition, the City has funded a number of other capital projects with impact fees and has actively
pursued grant funding for some major transportation and environmental improvements. It has also
employed the use of a Community Redevelopment Agency that is funded by means of tax increment
financing.
vi
The millage was increased 11.8% from 2.9917 to 3.3456 to partially offset the significant decline in
taxable values that occurred this year. Construction activity in fiscal year 2009 continued to be low,
with just 58 permits being issued for construction in fiscal year 2009 with a value of $11.2 million. The
decline is primarily attributed to the slowdown of the housing market.
Unreserved, undesignated fund balance in the general fund (43.0% of total general fund expenditure
budget) exceeds the policy guidelines set by the Council for budgetary and planning purposes (i.e.,
minimum of 25% of total general fund expenditure budget). The City is reluctant to spend down these
balances due to uncertainty about the future due to the slow down of building activity and because the
City understands reliance on accumulated reserves to fund operating expenditures is not a prudent fiscal
strategy. To this end, the budget for next year incorporates reductions in operating expenditures and the
use of only a minimal amount of accumulated reserves.
Major Initiatives
Stormwater The main focus of stormwater effort expended for the past fiscal year has continued to be
on the City's Stormwater Management Program, including capital projects, maintenance, citizen
response and education, and forward planning. In fiscal year 2007, City began a program to upgrade the
current swale system by installing 1 /4 rounds. The City also started outsourcing the swale and ditch
maintenance work to enable City crews to focus on different stormwater maintenance practices. During
fiscal year 2009, a significant portion of a major contract to replace the canal walls along Collier Creek
was accomplished.
Traffic Transportation The City continues working on a long -term street resurfacing program for
the next 10 to 15 years. City administration will also continue to program funding for streetscape
projects to help maintain public safety and beautification efforts. In addition, capital improvement
programming for sidewalk installation throughout the City will continue for both the short and long term
as funding and resources permit. $1,250,000 of additional paving funds will be provided in February
2010 by means of refinancing the outstanding bank note.
Airport The Sebastian Municipal Airport's infrastructure is being developed to attract economic
development opportunities that will stimulate the business climate and create jobs in the community.
The current Master Plan serves as the guiding document for airport planning. Land leases are a primary
source of airport revenues and over 150 acres of property is available for lease, for both aviation and
non aviation businesses. Also important are sales from a self -serve fueling facility.
The Airport's limited resources continue to be leveraged by aggressively seeking and obtaining grants
available from the Florida Department of Transportation (FDOT) and Federal Aviation Administration
(FAA) to provide the funding needed to develop the necessary infrastructure. Recent improvements
include adding a hangar and constructing an access road. These and other ventures will help attract
business to the Airport and thereby improve the Airport and City financial positions.
Public Safety The Police Department continues to provide a Community Police Officer who
participates in community events and offers special services, such as child safety seat inspections, youth
safety talks, neighborhood safety meetings and school security surveys. The City continues to sponsor
the School Resources Officer Program at the two elementary schools located within the City. In
addition, the Sebastian Police Department K -9 Unit has been increased to enable this capability on every
work shift. The K -9 Unit became possible as a result of numerous charitable efforts in the community.
It is effective in assisting officers with narcotics detection, location of missing persons and tracking
criminal suspects more expeditiously. Road Patrol and Special Operations continue to serve the
community by patrolling the city to deter crime and maintain the community policing philosophy.
vii
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, 2008. The Certificate of
Achievement 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,
Al, inner
City Manager
.„4,_ft,i
Kenneth W. Killgore
Director of Finance
viii
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Sebastian
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2008
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
ix
President
AeAffi-p
Executive Director
4-
CITY
CLERK
I
POLICE
i
1
ADMINISTRATION
ROAD PATROL I
CODE
ENFORCEMENT
N. INVESTIGATIONS
SUPPORT
SERVICES
DISPATCH
CITY OF SEBASTIAN, FLORIDA
ORGANIZATIONAL CHART
CITIZENS OF
SEBASTIAN
1
CITY COUNCIL I
R
CITY
MANAGER
ADMINISTRATIVE
SERVICES
GROWTH MANAGEMENT I
1
1
MANAGEMENT
INFORMATION SYSTEMS
BUILDING DEPARTMENT I
GOLF COURSE I
AIRPORT
1
BOARDS
COMMISSIONS
CITY
ATTORNEY
4-4 PUBLIC WORKS
ROADS
MAINTENANCE
PARKS
RECREATION
H CENTRAL GARAGE I
CEMETERY
FACILITIES
MAINTENANCE
STORWATER I
M
CITY OF SEBASTIAN, FLORIDA
CITY OFFICIALS
City Manager AL MINNER
City Clerk SALLY A. MAIO, MMC
City Attorney ROBERT GINSBURG
DEPARTMENT HEADS:
Police Chief MICHELLE MORRIS
Director of Administrative Services DEBRA KRUEGER
Director of Finance KENNETH W. KILLGORE
MIS Director FRANK LOSARDO
Public Works Director JERRY CONVERSE
Growth Management Director REBECCA GROHALL
Building Official WAYNE ESELTINE
Golf Course Director GREG GARDNER
Airport Director JOSEPH GRIFFIN
Xi
CITY OF
ate
HOME OF PELICAN ISLAND
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xi
FINANCIAL SECTION
This section contains the following subsections:
Independent Auditor's Report
Management's Discussion and Analysis
Government -wide Financial Statements
Fund Financial Statements
Notes to Financial Statements
Required Supplementary Information
Combining and Individual Fund Statements
and Schedules
1
CITY OF
HOME OF PELICAN ISLAND
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1 17: 11
Harris, Cotherman,
Jones, Price Associates
Certified Public Accountants Chartered
5070 North Highway A1A, Suite 250
Vero Beach, FL 32963
Tel 772 234 -8484
Fax 772-234-8488
Honorable Mayor and Members of City Council
City of Sebastian
Sebastian, Florida
Independent Auditors' Report
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, the aggregate discretely presented component units, each major fund, and the aggregate
remaining fund information of the City of Sebastian, Florida as of and for the year ended September 30,
2009, which collectively comprise the City's basic financial statements as listed in the table of contents.
These financial statements are the responsibility of the City of Sebastian, Florida's management. Our
responsibility is to express an opinion 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 of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used
and the significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
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, 2009, and the
respective changes in financial position and cash flows, where applicable, thereof for the year then ended
in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated March 5, 2010
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
the internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards and should be considered in assessing the
results of our audit.
The management's discussion and analysis and the required supplemental information, as listed in the
table of contents, are not a required part of the basic financial statements but are supplemental
information required by accounting principles generally accepted in the United States of America. We
have applied certain limited procedures which consisted principally of inquiries of management regarding
the methods of measurement and presentation of the required supplemental information. However, we
did not audit the information and express no opinion on it.
Member AICPA
"Providing Vision and Direction to our Clients"
Member AICPA Division For CPA Firms
Private Companies Practice Section
3
Member FICPA
Harris, Cotherman,
Jones, Price Associates
Certified Public Accountants Chartered
Honorable Mayor and Members of City Council
City of Sebastian
Sebastian, Florida
Page two
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise the City of Sebastian, Florida's basic financial statements. The introductory
section, combining and individual nonmajor fund financial statements, and statistical tables are presented
for purposes of additional analysis and are not a required part of the basic financial statements. The
combining and individual nonmajor fund financial statements have been subjected to the auditing
procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all
material respects in relation to the basic financial statements taken as a whole. The introductory section
and statistical tables have not been subjected to the auditing procedures applied in the audit of the basic
financial statements and, accordingly, we express no opinion on them.
The accompanying schedule of expenditures of federal awards and state financial assistance is presented
for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A-
133, the Florida Single Audit Act and Chapter 10.550, Rules of the Auditor General, and is also not a
required part of the basic financial statements of the City of Sebastian, Florida. Such information has
been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our
opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a
whole.
dowtionut, 4nu, Pole J aedediAito
hhhe actin t .&s C: hMtst
Harris, Cotherman, Jones, Price Associates, Certified Public Accountants Chartered
Vero Beach, Florida
March 5, 2010
4
Financial Highlights
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 (MD &A) is designed to focus on the current years activities,
resulting changes and currently known facts, please read it in conjunction with the Transmittal Letter (beginning
on page v) and the City's financial statements (beginning on page 15).
HIGHLIGHTS
The assets of the City exceeded its liabilities at the close of the fiscal year 2009 by $50,354,867 (net
assets). Of this amount, $4,588,957 (unrestricted net assets) may be used to meet the government's on
going obligations to citizens and creditors.
The city's total net assets increased by $1,535,856 resulting from an increase of $1,059,819 from
governmental activities and $476,037 from business -type activities
As of the close of current fiscal year, the City's governmental funds reported combined ending fund
balance of $15,155,532, a decrease of $4,370,837 in comparison with the prior year. Approximately 57%
of this amount, $8,712,629, is available for spending at the City's discretion (unreserved, undesignated
fund balance).
At the end of the current fiscal year, unreserved, undesignated fund balance for the general fund was
$5,096,901, or an 8% decrease from prior year general fund unreserved and undesignated fund balance.
The key factor in this decrease was that receipts from budgeted revenues were substantially lower than the
prior year.
USING THIS ANNUAL REPORT
The annual report consists of a series of financial statements. The Statement of Net Assets and the Statement of
Activities (on pages 15, 16, and 17) provide information about the activities of the City as a whole and present a
longer -term view of the City's finances. Fund financial statements begin on page 18. For governmental
activities, these 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 remaining statements provide financial information
about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the
government.
Reporting the City as a Whole
Our analysis of the City as a whole begins on page 15. One of the most important questions asked about the
City's finances is, "Is the City as a whole better off or worse off as a result of the year's activities The
Statement of Net Assets and the Statement of Activities report information about the City as a whole and about its
activities in a way that helps answer this question. These statements include all assets and liabilities using the
accrual basis of accounting, which is similar to the accounting used in most private- sector companies. All of the
current year's revenues and expenses are taken into account regardless of when cash is received or paid.
These two statements report the City's net assets and changes in them. You can think of the City's net assets
the difference between assets and liabilities as one way to measure the City's financial health, or financial
position. Over time, increases or decreases in the City's net assets, is one indicator of whether its financial
5
health is improving or deteriorating. You will need to consider other nonfinancial factors, however, such as
changes in the City's property tax base and the condition of the City's roads, to assess the overall health of the
City.
In the Statement of Net Assets and the Statement of Activities, we divide the City into two kinds of activities:
Governmental activities Most of the City's basic services are reported here, including the police, public
works, parks and recreation, and general administration. Taxes, franchise fees, and state shared revenue
finance most of these activities.
Business -type activities The City charges a fee to customers to help it cover all or most of the cost of
certain services it provides. The City's Golf Course, Airport, and Building operations are reported here.
Fund Financial Statements
Our analysis of the City's major funds begins on page 18. The fund financial statements provide detailed
information about the most significant funds not the City as a whole. Some funds are required to be established
by State law and by bond covenants. However, the City Council establishes many other funds to help it control
and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain
taxes, grants, and other money (like the local option gas tax and infrastructure sales surtax (a.k.a. Discretionary
Sales Tax)).
Governmental Funds
Most of the City's basic services are reported in governmental funds, which focus on how money flows into and
out of those funds and the balances left at year -end that are available for spending. These funds are reported using
an accounting method called modified accrual accounting, which measures cash and all other financial assets that
can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the
City's general government operations and the basic services it provides. Governmental fund information helps
you determine whether there are more or fewer financial resources that can be spent in the near future to finance
the City's programs. We describe the relationship (or differences) between governmental activities (reported in
the Statement of Net Assets and the Statement of Activities) and governmental funds in reconciliations at the
bottom of the fund financial statements.
The City maintains fifteen individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes
in fund balances for the general fund, discretionary sales tax special revenue fund, riverfront redevelopment
special revenue fund, transportation improvements capital project fund and stormwater utility improvements
capital project fund, all of which are considered to be major funds. Data from the other ten governmental funds
are combined into a single, aggregated presentation. Individual fund data for each nonmajor governmental fund is
provided in the form of combining statements beginning on page 60.
Annual budgets are adopted 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. The budgetary comparison statements
have been provided for all governmental funds except capital project funds to demonstrate compliance with the
budget.
The basic governmental fund financial statements can be found on pages 18 -22 of this report.
6
Proprietary Funds
When the City charges customers for the services it provides whether to outside customers or to other units of
the City these services are generally reported in proprietary funds. Proprietary funds are reported in the same
way that all activities are reported in the Statement of Net Assets and the Statement of Activities. In fact, the
City's enterprise funds (a component of proprietary funds) are the same as the business -type activities we report
in the government -wide statements but provide more detail and additional information, such as cash flows, for
proprietary funds.
The basic proprietary fund financial statements can be found on page 23 -26 of this report.
Fiduciary Funds
The City is the trustee, or fiduciary, for the Police Officers' Pension Plan. The City's fiduciary activities are
reported in separate Statements of Fiduciary Net Assets and Changes in Fiduciary Net Assets on page 27 and 28.
We exclude these activities from the City's other financial statements because the City cannot use these assets to
finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for
their intended purposes.
The City holds deposits for various individuals and businesses for contract performance that are then returned
when the contract has been completed. These deposits are accounted for in an Agency fund, where assets equal
liabilities.
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. The notes to the financial statements can be found on pages 29-
50 of this report.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information concerning the City's major funds budget and actual comparison and progress in
funding its obligation to provide pension benefits to its employees. Required supplementary information can be
found on pages 51 -56 of this report.
THE CITY AS A WHOLE
Financial Analysis of the City as a Whole
The City's combined net assets increased $1.6 million from $48.8 million to $50.4 million or 3 Looking at the
net assets and net revenues of the governmental and business -type activities, the increase occurred in both the net
assets of governmental -type activities and the business -type activities. Our analysis focuses on net assets (Table
1) and changes in net assets (Table 2) of the City's governmental and business -type activities.
7
GOVERNMENT -WIDE STATEMENTS
Statement of Net Assets
The following table reflects the condensed Statements of Net Assets:
Table 1
Current and other assets
Capital assets
Total assets
Non current liabilities
Other liabilities
Total liabilities
Net assets:
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total net assets
Governmental Activities
2009 2008
17,084 21,016
38,673 34,468
55,757 55,484
14,782
1,530
16,312
Statements of Net Assets
as of September 30, 2009 and 2008
(in thousands)
15,868
1,231
17,099
Business -type Activities
2009 2008
692 1,848
11,018 9,966
11,710 11,814
534
265
799
For more detail information see the Statement of Net Assets on page 15.
26,745 24,134 10,726 9,111
8,198 9,216 98 570
4,502 5,035 87 753
39,445 38,385 10,911 10,434
1,086
294
1,380
Total Primary Government
2009 2008
17,776 22,864
49,691 44,434
67,467 67,298
15,316 16,954
1,795 1,525
17,111 18,479
37,471
8,296
4,589
50,356
33,245
9,786
5,788
48,819
Total net assets of the governmental activities increased from $38.385 million to $39.445 million. Total net assets
for business -type activities increased from $10.434 million to $10.911 million.
The increase in governmental activities capital assets is due to projects that were completed during the period. The
decrease in governmental activities non current liabilities is due to normal amortization of the long -term debt.
The decrease in unrestricted net assets is mainly due to the corresponding increase in restricted net assets caused
from investment in capital assets.
The increase in net assets for business -type activities is primarily due to the increase in capital assets funded by
the Federal Aviation Administration and the Florida Department of Transportation for the City's municipal
airport.
The following table shows the revenue and expenses of the total primary government.
REVENUES
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues:
Property taxes
Other taxes
Intergovernmental
Other
Total revenues
EXPENSES
General government
Public safety
Physical environment
Transportation
Economic environment
Culture and recreation
Golf Course
Airport
Building
Interest and fiscal charges
Total expenses
Change in net assets before transfers
Net assets October 1, 2008
Net assets September 30, 2009
Governmental Activities
Table 2
Changes in Net Assets
For the Fiscal Years Ended September 30, 2009 and 2008
(in thousands)
Governmental
Activities
2009 2008
1,291 1,426
228 786
1,865 836
4,802
4,670
1,821
1,729
16,406
3,170
5,421
1,348
3,438
167
1,073
730
15,347
1,059
38,385
39,444
9
5,149
4,754
1,990
1,993
16,934
3,375
5,227
1,806
2,111
113
1,421
635
14,688
2,246
36,139
38,385
Business -type
Activities
2009 2008
2,205 2,309 3,496 3,735
228 786
1,357 494 3,222 1,330
6 54
3,568 2,857
1,477
1,080
534
3,091
477
10,434
10,911
1,488
1,100
605
3,193
(336)
10,770
10,434
Total Primary
Government
2009 2008
4,802
4,670
1,821
1,735
19,974
5,149
4,754
1,990
2,047
19,791
3,170 3,375
5,421 5,227
1,348 1,806
3,438 2,111
167 113
1,073 1,421
1,477 1,488
1,080 1,100
534 605
730 635
18,438 17,881
1,536 1,910
48,819 46,909
50,355 48,819
Overall the total revenues increased $183 thousand from the previous year but only as a result of an increase in
capital grants that more than offset declines in all other revenue source categories. The total cost of all programs
increased by 3.0% ($557 thousand) for the same reason. Our analysis below separately considers the operations
of governmental and business -type activities.
Governmental activities revenues exceed expenses by $1.059 million. Total revenues decreased approximately
$528 thousand from the previous year. The decline was primarily in categories affected by the slowdown in
economic activity. Less was received in Recreation Impact fees and a downturn was noted in sales taxes and state
shared revenues. Total expenses increased $659 thousand from the previous year. The largest increase in
spending was in the category of transportation.
The following is a graphic illustration of the comparison for governmental activities revenue and expenses.
0
E
6,000
5,000
4,000
3,000
2,000
1,000
Governmental Activities Comparison
for Fiscal Year 2009 and Fiscal Year 2008
e4
•ce Q���4e la ge e tQg es p A i e �eO J <D e ate o�S °p
G a �Po eS S pQ eia G QQ C 4i ��b °yet e et a b e`a `t r 5 d` eV.- 61e. te<
h tit` et` Q 5 tie G° lote
Revenue/Expense types
2009 2008
Business -type Activities
Revenues of the City's business -type activities (see Table 2) increased $711 thousand primarily because of capital
grants. Expenses fell by 3.2% for all the City's business -type activities, with expenses for Building Enterprise
falling by 11.7% due to staffing reductions; Airport expenses declining 1.8% due to unusually high operating
expenses that were incurred the prior year and; Golf Course expenses declining .7% due to reductions in
personnel costs. The City's Municipal Airport enjoys a continued interest by the Florida Department of
Transportation Aviation Section and Federal Aviation Administration to upgrade the airport facilities as
evidenced by repeated support via grant funding.
Following is a graphic comparison of the City's business -type activities.
Business -Type Activities Comparison
for Fiscal Year 2009 and Fiscal Yeal 2008
i`�ce5 t p �5 i 4 tiS eOS e9 eose e OS e9
sk °S O4 e t� s G�Q�' p� `4 ette G °vt5e �,t� °e�4eg4
S
Revenue/Expense types
1112009 IN 2008
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
1
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, unreserved 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 the City completed the fiscal year, its governmental funds (as presented in the balance sheet on pages 18 -19)
reported a combined fund balance of $15.2 million, which is a decrease of $4.3 million from the prior year of
$19.5 million. Approximately 57.4% of this total amount ($8.7 million) constitutes unreserved, undesignated fund
balance, which is available for spending at the City's discretion. The remainder of fund balance is reserved or
designated to indicate that it is not available for new spending because it has already been committed 1) to pay
debt service ($1.6 million), 2) to fund capital projects ($3.0 million), 3) to generate income to pay for the
perpetual care of the municipal cemetery ($0.8 million), or 4) for a variety of other restricted or designated
purposes ($1.1 million).
The general fund is the chief operating fund of the City. At the end of the fiscal year, unreserved, undesignated
fund balance of the general fund was $5,096,901, while total fund balance was $5,768,114. As a measure of the
general fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total
fund expenditures. Unreserved, undesignated fund balance represents 42 percent of total general fund
expenditures, while total fund balance represents 48 percent of that same amount.
The fund balance of the City's general fund decreased by $540,068 during the current fiscal year. Key factors in
this reduction are as follows:
Property tax revenues decreased by $368,863 due to reductions in taxable property values.
Licenses and permits decreased $134,320 because most of those accounts were moved to the Building
Enterprise Fund.
Intergovernmental decreased $140,938 due to lower sales tax and state shared revenues.
Contributions and donations decreased $271,906 because of unusually large contributions the prior year.
Public utility taxes increased $90,677 and franchise fees increased $127,491.
All other revenues decreased by $62,083.
The discretionary sales tax revenue special revenue fund has a total unreserved and undesignated fund balance
of $673,676. The decrease from the total fund balance of the prior year ($1,404,945) is mainly due to transfers
made to the discretionary sales surtax revenue bonds 2003 fund to establish a cash reserve account as required by
the bond covenants.
The riverfront redevelopment special revenue fund has an unreserved and undesignated fund balance of
$984,638. The increase from the total fund balance of the prior year ($16,404) is mainly due to the return of a
portion of the transfers made for capital improvements that ended up being funded by grants.
The transportation improvements capital project fund has a total fund balance of $567,307, all of which is
encumbered or reserved for transportation related construction such as roads, intersections and sidewalks.
The stormwater utility improvements capital project fund has a total fund balance of $2,080,225, all of which
is reserved for stormwater capital projects. The decrease from the total fund balance of the prior year ($5,039,510)
is due to expenditures made on several stormwater capital projects.
11
Proprietary Funds
The City's proprietary funds provide the same type of information found in the government -wide financial
statements, but in more detail.
The total net assets of the golf course fund at the end of the fiscal year amounted to $377,603, while the
unrestricted net assets (deficit) amounted to ($160,600). Compared to the prior year in the same category, net
assets are $68,764 less than the prior year, while the unrestricted net assets has a decrease of $161,233 from the
prior year. This is mainly due to the use of funds for repayment of long -term debt. Detailed golf course net assets
information is presented on page 23.
The total net assets of the airport fund at the end of the fiscal year amounted to $9,876,909, while the
unrestricted net assets (deficit) amounted to ($389,368). Compared to the prior year in the same category, net
assets have increased by $716,336 while the unrestricted net assets decreased $345,898. The decrease in
unrestricted net assets is mainly due to the construction of airport capital projects.
The total net assets of the building fund at the end of the fiscal year amounted to $656,001, while the unrestricted
net assets amounted to $636,485. The building fund experienced an operating loss, as a result of the slowdown in
activity and drop in collections of building permit fees.
Other factors concerning the finances of these three funds have already been addressed in the discussion of the
City's business -type activities.
General Fund Budgetary Highlights
Over the course of the fiscal year, the City Council revised the City budget four times. These budget amendments
fall into three categories. The first category includes amendments and supplemental appropriations that were
approved shortly after the beginning of the year and reflect fund balances carried over from the prior fiscal year to
fund outstanding encumbrances. The second category includes adjustments for unanticipated revenues. The third
category includes supplemental appropriations to cover unanticipated items or costs that were in excess of
budgeted amounts. The main components of the increase are as follows:
$18,680 supplemental appropriation to general fund dep.'talents for encumbered amounts carried forward
from the prior fiscal year.
$2,088 supplemental appropriation for proceeds from a JAG Grant for equipment purchases.
$41,743 supplemental appropriation to police department for funds received from a public safety grant.
137,782 supplemental appropriation to police department for the required pension contribution.
$36,000 supplemental appropriation to police department for unanticipated higher overtime expenditures.
$4,500 supplemental appropriation for the costs of MIS Department equipment service agreements that
were not budgeted.
$20,000 supplemental appropriation to public works for unanticipated repair to facilities and power costs.
$43,000 supplemental appropriation for higher than anticipated expenditures for unemployment
compensation, contract mowing and insurance claims.
During the fiscal year, total general fund actual revenues were less than final amended budgetary estimates and
total general fund actual expenditures were less than the final amended budgetary estimates. The shortfall in
anticipated revenues was mainly due to a decline in intergovernmental revenues, specifically the City's share of
sales tax proceeds. Lower than anticipated investment earnings also contributed to the shortfall. Positive
variances on expenditures resulted in a lower draw on existing fund balances than had been anticipated.
12
Capital Assets
At the end of fiscal year 2009 the City had $74,095,502 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 $8,053,202, or 12.2 over last
year. The following table illustrates the changes in capital assets. See page 40 and page 41 in the notes to the
financial statements for detailed changes in capital assets.
Land
Buildings
Improvements
Equipment
Infrastructure
Construction -in
Progress
Totals
Debt
Governmental
Activities
2009
5,699,045
11,284,488
5,704,686
7,784,213
25,125,625
CAPITAL ASSET AND DEBT ADMINISTRATION
2008
5,696,946
11,158,739
5,149,267
7,390,752
22,259,149
3,958,971 1,520,565
Table 3
Business -type
Activities
2009
9,060
5,082,120
1,940,103
1,062,333
6,237,799
13
2008
9,060
3,726,258
1,866,928
922,575
6,226,110
Totals
2009
5,708,105
16,366,608
7,644,789
8,846,546
31,363,424
2008
5,706,006
14,884,997
7,016,195
8,313,327
28,485,259
207,059 115,951 4,166,030 1,63 6,516
59,557,028 53,175,418 14,538,474 12,866,882 74,095,502 66,042,300
Governmental activities had the following major increases during the fiscal year:
An increase in buildings mainly due to upgrades at Schumann Park.
An increase in improvements due to the capitalization of work completed on pedestrian bridges.
An increase in equipment mainly due to capitalization of new police vehicles.
An increase in infrastructure mainly due to the work on the Collier Creek stormwater drainage system.
An increase in construction -in- progress due to the contract for work at Collier Creek.
Business -type activities had the following major increases during the fiscal year:
An increase in buildings mainly due to the completion of a hangar.
An increase in improvements mainly due to work on the municipal airport lighting and signage.
An increase in equipment mainly due to the purchase of municipal airport maintenance equipment.
An increase in construction -in- progress primarily due to the project to construct an access road.
On September 30, 2009, the City had $13,421,679 in bonds and notes outstanding versus $15,203,148 on
September 30, 2008 a decrease of 11.7% as shown in the table on the following page:
The decrease in debt is solely attributable to the retirement of debts. The Infrastructure Sales Surtax Revenue
Bonds, Series 2003 and Series 2003A and the Stormwater Utility Revenue Bonds, Series 2003 were initially
insured by AAA rated insurance agencies and rated AAA, which is the highest rating given by rating agencies.
The City's Recreational Facilities Improvement and Refunding Revenue Bonds, Series 2001 received a AAA
rating from Standard Poor's. However, ratings on the insurance agencies have recently been downgraded. All
of the City's other debt, primarily notes and a capital lease, are not rated. Other obligations of the City include
accrued vacation pay and sick leave.
Additional information on the City's long -term debt can be found on pages 43 through 45 in the notes to the
financial statements.
Infrastructure sales surtax revenue
bonds, Series 2003
Infrastructure sales surtax revenue
bonds, Series 2003A
Stormwater utility revenue bonds,
Series 2003
Notes payable (backed by local
option gas tax)
Recreational facilities
improvements and refunding
revenue bonds, series 2001
Governmental
Activities
2009 2008
6,255,000
1,470,000
4,315,000
1,089,203
Table 4
6,840,000
1,605,000
4,570,000
1,333,197
Totals 13,129,203 14,348,197 292,476 854,951 13,421,679 15,203,148
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
The City's elected and appointed officials considered many factors when setting the fiscal year 2010 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 2009 was 14.1% up from 9.7% in the previous year. This is analogous to the economic slowdown being
experienced throughout the state and nation. Again in fiscal year 2009, the city experienced a major reduction in
property value (11.9% decrease) and a small decline in new construction permits (from 60 to 58). The low
number of new construction permits reflects the state and national trend and is consistent with the overall housing
market.
These indicators were taken into account when adopting the General Fund budget for fiscal year 2010. Amounts
available for appropriation in the General Fund budget are $10,809,831, a decrease of 8.8% from the original
fiscal year 2009 budget of $11,850,747. Uncertainty about the low amount of building activity and concern about
additional measures that may be enacted by the State to limit revenues and spending has caused the City to limit
spending. The City has determined that it should continue to proceed cautiously.
The Golf Course experienced some increase in golf revenues in fiscal year 2009 mainly due to a slight increase in
number of rounds being played. Although it reduced expenses on salaries, wages and employee benefits,
increases in expenses on maintenance and depreciation resulted in it being unable to meet the bond coverage
requirement on the Recreational Facilities Improvement and Refunding Revenue Bonds, Series 2001. The
coverage requirement is defined as the net revenues being equal to at least 125% of the annual debt service
payment. City management continues to monitor the operation and develop recommendations that could resolve
the deficiency.
REQUEST 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.
14
Business -type
Activities
2009 2008
292,476 854,951
Totals
2009
2008
6,255,000 6,840,000
1,470,000 1,605,000
4,315,000 4,570,000
1,089,203 1,333,197
292,476 854,951
City of Sebastian, Florida
Statement of Net Assets
September 30, 2009
Governmental Business -type
Activities Activities Total
ASSETS
Cash and cash equivalents 1,853,386 120,880 1,974,266
Investments 6,865,360 811,369 7,676,729
Receivables 1,453,710 79,684 1,533,394
Internal balances 485,000 (485,000)
Prepaid items 86,441 26,282 112,723
Inventory 71,255 25,916 97,171
Restricted assets:
Temporarily restricted:
Cash and cash equivalents 1,328,206 1,328,206
Investments 3,730,677 98,320 3,828,997
Permanently restricted:
Investments 672,259 672,259
Overfunded pension costs 165,630 165,630
Deferred charges 371,516 13,897 385,413
Capital assets not being depreciated:
Land 5,699,045 9,060 5,708,105
Construction in progress 3,958,971 207,059 4,166,030
Capital assets (net of accumulated depreciation):
Buildings 8,613,841 4,474,390 13,088,231
Improvements other than buildings 3,797,463 1,470,630 5,268,093
Machinery and equipment 1,777,849 394,498 2,172,347
Infrastructure 14,826,115 4,462,514 19,288,629
Total assets 55,756,724 11,709,499 67,466,223
LIABILITIES
Accounts payable and other current
liabilities 1,304,194 117,674 1,421,868
Accrued interest payable 223,432 223,432
Unearned revenues 2,784 147,164 149,948
Non current liabilities:
Due within one year 1,460,471 16,716 1,477,187
Due in more than one year 13,321,489 517,432 13,838,921
Total liabilities 16,312,370 798,986 17,111,356
NET ASSETS
Invested in capital assets, net of related debt 26,744,896 10,725,676 37,470,572
Restricted for:
Capital projects 4,124,738 4,124,738
Debt service 1,554,128 1,554,128
Road projects 649,886 649,886
Community redevelopment 984,638 984,638
Perpetual care:
Expendable 157,769 157,769
Nonexpendable 672,259 672,259
Other purposes 53,600 98,320 151,920
Unrestricted 4,502,440 86,517 4,588,957
Total net assets 39,444,354 10,910,513 50,354,867
The accompanying notes to financial statements are an integral part of this financial statement.
15
City of Sebastian, Florida
Statement of Activities
For the year ended September 30, 2009
Operating Capital
Charges for Grants and Grants and
Function /Program Expenses Services Contributions Contributions
Governmental activities:
General government 3,169,851 220,073 5,930
Public safety 5,420,585 95,606 203,513
Physical environment 1,347,771 908,829 500,000
Transportation 3,437,724 18,559 593,776
Economic environment 167,470 6,000
Cultural /recreation 1,073,249 66,540 765,398
Interest and fiscal charges 730,100
Total governmental activities 15,346,750 1,291,048 228,002 1,865,174
Business -type activities:
Golf Course 1,477,299 1,406,956
Airport 1,079,869 438,485 1,356,914
Building 533,641 358,947
Total business -type activities 3,090,809 2,204,388 1,356,914
Total government 18,437,559 3,495,436 228,002 3,222,088
Program Revenues
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
Total general revenues
Change in net assets
Net assets beginning
Net assets ending
The accompanying notes to financial statements are an integral part of this financial statement.
16
(11,962,526)
Net (Expense) Revenue and
Changes in Net Assets
Governmental Business -type
Activities Activities
Total
(2,943,848) (2,943,848)
(5,121,466) (5,121,466)
61,058 61,058
(2,825,389) (2,825,389)
(161,470) (161,470)
(241,311) (241,311)
(730,100) (730,100)
(11,962,526) (11,962,526)
(70,343) (70,343)
715,530 715,530
(174,694) (174,694)
470,493 470,493
470,493 (11,492,033)
4,801,924 4,801,924
4,670,106 4,670,106
1,327,253 1,327,253
1,821,347 1,821,347
261,203 5,544 266,747
140,512 140,512
13,022,345 5,544 13,027,889
1,059,819 476,037 1,535,856
38,384,535 10,434,476 48,819,011
39,444,354 10,910,513 50,354,867
17
ASSETS
Cash and cash equivalents
Investments
Accounts receivables
Due from other governments
Interest receivable
Inventory
Prepaid items
Advance to other funds
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Retainage payable
Due to other governments
Other deposits held in escrow
Total liabilities
Fund balances:
Reserved for:
Advance to other funds
Debt service
Capital projects
Property and casualty
Cemetery care
Law enforcement
Emergency services
Unreserved:
Designated for employee events
Designated for law enforcement
Undesignated, reported in:
General fund
Special revenue funds
Total fund balances
Total liabilities and fund balances
Net assets of governmental activities
General
865,434 49,047
4,433,893 431,114
266,902
307,932 193,509
24,069 6
71,255
86,441
200,000 285,000
6,255,926 958,676
479,706
5,322
2,784
487,812
City of Sebastian, Florida
Balance Sheet
Governmental Funds
September 30, 2009
Discretionary Riverfront Transportation
Sales Tax Redevelopment Improvements
200,000 285,000
100,000
350,000
9,615
11,598
5,096,901
5,768,114
673,676
958,676
6,255,926 958,676
18
609,416
375,251
6
984,673
35
35
181,832
425,291
607,123
39,816
39,816
567,307
984,638
984,638 567,307
984,673 607,123
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not financial resources, therefore, are not reported in the funds.
Negative net pension obligation resulting from overfunding of the police officers' pension plan.
Accrued other post employment and termination benefits are not financial uses, therefore, are not reported in the funds.
Long -term liabilities are not due and payable in the current period and, therefore, are not reported in the funds.
Accrued long term debt interest expenses are not financial uses, therefore, are not reported in the funds.
Some interest receivables are not financial resources in the current period and, therefore, are not reported in the funds.
The accompanying notes to fmancial statements are an integral part of this fmancial statement.
Stormwater
Utility
Improvements
27,853
2,604,079
81,200
2,713,132
395,450
237,457
632,907
2,080,225
2,080,225
2,713,132
Other Total
Governmental Governmental
Funds Funds
1,448,010 3,181,592
3,423,959 11,268,296
266,902
71,002 1,078,934
9 24,090
71,255
86,441
485,000
4,942,980 16,462,510
146,408 1,061,415
237,457
5,322
2,784
146,408 1,306,978
485,000
1,554,128 1,554,128
401,402 3,048,934
100,000
830,029 830,029
53,600 53,600
350,000
9,615
11,598
5,096,901
1,957,413 3,615,727
4,796,572 15,155,532
4,942,980
38,673,284
165,630
(326,167)
(14,084,277)
(223,432)
83,784
39,444,354
19
REVENUES:
Taxes:
Property
Public utility
Sales
Motor fuel
Franchise fees
Licenses and permits
Intergovernmental
Impact fees
Charges for services
Fines
Special assessments
Investment earnings
Contributions and donations
Other revenue
Total revenues
EXPENDITURES:
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Culture and recreation
Debt Service:
Principal
Interest and fiscal charges
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
O1'IIER FINANCING
SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net changes in fund balances
Fund balances beginning
Fund balances ending
City of Sebastian, Florida
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2009
General
4,276,800
2,341,458
1,327,253
29,151
2,000,872
288,881
59,411
3,849
167,396 4,452 1,990
28,462
140,059
10,663,592 2,333,100 527,114
2,976,896
4,918,779
1,425,836
1,451,787
1,148,408
103,492
12,025,198
(1,361,606)
Discretionary Riverfront Transportation
Sales Tax Redevelopment Improvements
2,328,648
20
525,124
167,470
167,470
2,333,100 359,644
821,538 668,590
(2,779,369) (60,000)
821,538 (2,779,369) 608,590
(540,068) (446,269) 968,234
6,308,182 1,404,945 16,404
5,768,114 958,676 984,638
The accompanying notes to financial statements are an integral part of this financial statement.
751,423
19,931
771,354
2,209,265
2,209,265
108,159
(900,098)
(791,939)
(2,229,850)
2,797,157
567,307
Stormwater
Utility
Improvements
500,000
43,688
543,688
13,437
3,562,964
3,576,401
(1,437,911) (3,032,713)
73,428
73,428
(2,959,285)
5,039,510
2,080,225
Other Total
Governmental Governmental
Funds Funds
4,801,924
2,341,458
2,328,648
593,776 593,776
1,327,253
29,151
18,559 3,270,854
13,975 13,975
897,280 1,186,161
29,527 88,938
3,849
13,457 250,914
7,456 35,918
453 140,512
1,574,483 16,413,331
2,976,896
7,935 4,926,714
8,794 1,448,067
244,467 1,696,254
167,470
1,148,408
1,218,995 1,218,995
706,093 706,093
619,550 6,495,271
2,805,834 20,784,168
(1,231,351) (4,370,837)
3,524,661 5,196,376
(1,456,909) (5,196,376)
2,067,752
836,401 (4,370,837)
3,960,171 19,526,369
4,796,572 15,155,532
21
City of Sebastian, Florida
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds
To the Statement of Activities
For the Year Ended September 30, 2009
Net change in fund balances total governmental funds
Amount reported for governmental activities in the statement of activities are
different because:
Some interest revenues reported in the statement of activities do not constitute
current fmancial resources, therefore, are not reported as revenues in governmental
funds
Governmental funds report capital outlay as expenditures. However, in the
statement of activities, the cost of those assets is allocated over their estimated
useful lives as depreciation expense.
Governmental funds only report the disposal of assets to the extent proceeds are
received from the sale. In the statement of activities, a gain or loss is reported for
each disposal.
Payment of a special assessment receivable is reported as revenue in the fund
financial statements. (3,849)
Overfunded pension contributions are reported as expenditures in the fund financial
statements and recorded as a net pension asset on the statement of net assets. 65,355
Repayment of bond principal, note principal, and capital lease principal are
expenditures in the governmental funds, but the payment reduces long -term
liabilities in the statement of net assets.
Some expenses reported in the statement of activities do not require the use of
current financial resources, therefore, are not reported as expenditures in the
governmental funds.
Change in net assets of governmental activities 1,059,819
The accompanying notes to financial statements are an integral part of this fmancial statement.
22
(4,370,837)
(15,802)
4,206,490
(1,318)
1,218,994
(39,214)
ASSETS
Current assets:
Cash and cash equivalents
Investments
Restricted cash, cash equivalents and
investments:
Revenue bond covenant accounts
Due from other governments
Interest receivable
Inventory
Prepaid items
Total current assets
Noncurrent assets:
Deferred charges
Capital assets:
Land
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Construction in process
Less accumulated depreciation
Total noncurrent assets
Total assets
City of Sebastian, Florida
Statement of Net Assets
Proprietary Funds
September 30, 2009
Enterprise Funds
Golf Course Airport Building Totals
4,779 90,600 25,501 120,880
811,369 811,369
98,320 98,320
76,184 76,184
1 3,499 3,500
13,048 12,868 25,916
13,190 11,045 2,047 26,282
129,337 190,698 842,416 1,162,451
13,897 13,897
9,060 9,060
331,228 4,750,892 5,082,120
277,590 1,662,513 1,940,103
355,978 645,829 60,526 1,062,333
1,100,951 5,136,848 6,237,799
207,059 207,059
(1,333,389) (2,145,924) (41,010) (3,520,323)
746,255 10,266,277 19,516 11,032,048
875,592 10,456,975 861,932 12,194,499
LIABILITIES
Current liabilities:
Accounts payable 65,548 27,672 $17,143 110,363
Advance from other fund 485,000 485,000
Due to other governments 6,479 832 7,311
Unearned revenues 60,443 $86,721 147,164
Accrued termination benefits 6,171 6,171
Accrued compensated absences 224 1,834 8,486 10,544
Matured bonds payable 292,475 292,475
Total current liabilities 425,169 515,338 118,521 1,059,028
Non current liabilities:
Compensated absences 65,170 45,227 73,867 184,264
Unfunded OPEB obligation 7,650 19,501 13,543 40,694
Total non current liabilities 72,820 64,728 87,410 224,958
Total liabilities 497,989 580,066 205,931 1,283,986
NET ASSETS
Invested in capital assets, net of related debt 439,883 10,266,277 19,516 10,725,676
Restricted for payment of Airport rent 98,320 98,320
Unrestricted (deficit) (160,600) (389,368) 636,485 86,517
Total net assets 377,603 9,876,909 656,001 10,910,513
The accompanying notes to financial statements are an integral part of this financial statement.
23
City of Sebastian, Florida
Statement of Revenues, Expenses and Changes in Fund Net Assets
Proprietary Funds
For the Year Ended September 30, 2009
Enterprise Funds
Golf Course Airport Building Totals
Operating revenues:
Charges for fees and rents:
Building permit fees 358,948 358,948
Golf course fees pledged as
security for revenue bonds 1,371,876 1,371,876
Rents 31,178 277,004 308,182
Other revenue 3,901 161,481 165,382
Total operating revenues 1,406,955 438,485 358,948 2,204,388
Operating expenses:
Salaries, wages and employee benefits 350,475 245,949 403,746 1,000,170
Contractual services, materials and supplies 991,669 283,254 117,788 1,392,711
Depreciation 89,243 542,116 12,107 643,466
Total operating expenses 1,431,387 1,071,319 533,641 3,036,347
Operating income (loss) (24,432) (632,834) (174,693) (831,959)
Nonoperating revenues (expenses):
Interest income 806 3,158 3,964
Interest income pledged as security
for revenue bonds 1,580 1,580
Interest expense (32,015) (8,550) (40,565)
Bond amortization expense (13,897) (13,897)
Total nonoperating revenues (expenses) (44,332) (7,744) 3,158 (48,918)
Income /(loss) before capital contributions
and transfers (68,764) (640,578) (171,535) (880,877)
Capital contributions 1,356,914 1,356,914
Change in net assets (68,764) 716,336 (171,535) 476,037
Total net assets beginning 446,367 9,160,573 827,536 10,434,476
Total net assets ending 377,603 9,876,909 656,001 10,910,513
The accompanying notes to financial statements are an integral part of this fmancial statement.
24
Cash and cash equivalents, October 1
Cash and cash equivalents, September 30
City of Sebastian, Florida
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2009
Enterprise Funds
Golf Course Airport Building Totals
CASH FLOWS FROM OPERATING
ACTIVITIES:
Cash received from customers and users 1,393,849 449,485 362,539 2,205,873
Cash payments to suppliers (973,644) (312,994) (106,925) (1,393,563)
Cash payments for employee services (350,358) (240,987) (398,350) (989,695)
Net cash provided (used) by operating
activities 69,847 (104,496) (142,736) (177,385)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets (91,065) (1,604,349) (1,695,414)
Receipt from capital grants 1,323,594 1,323,594
Capital contributions 5,000 5,000
Principal paid on revenue bond maturities (570,000) (570,000)
Bond issuance costs 7,524 7,524
Interest paid on revenue bonds (49,860) (49,860)
Interest paid on advance from other funds (8,550) (8,550)
Net cash provided (used) by capital and
related financing activities (703,401) (284,305) (987,706)
CASH FLOWS FROM INVESTING
ACTIVITIES:
Interest on investments 1,788 1,424 472 3,684
Net cash provided by investing activities 1,788 1,424 472 3,684
Net increase (decrease) in cash and cash equivalents (631,766) (387,377) (142,264) (1,161,407)
103,099 90,600 836,870 1,030,569
734,865 477,977 979,134 2,191,976
The accompanying notes to financial statements are an integral part of this financial statement.
25
City of Sebastian, Florida
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2009
(Continued)
Enterprise Funds
Golf Course Airport Building Totals
Reconciliation of operating income (loss) to
net cash provided (used) by operating activities:
Operating income (loss) (24,432) (632,834) (174,693) (831,959)
Adjustments to reconcile operating income to net
cash provided (used) by operating activities:
Depreciation expense 89,243 542,116 12,107
(Increase) Decrease in assets:
Accounts receivable 11,000 11,000
Inventories (3,253) 9,350 6,097
Prepaid expenses (3,839) (4,757) 2,997 (5,599)
Increase (Decrease) in liabilities:
Accounts payable 25,433 (33,932) 7,866 (633)
Due to other governments (316) (401) (717)
Unearned revenues (2,106) 3,591 1,485
Accrued termination benefits (13,268) (13,268)
Accrued compensated absences (679) 3,204 17,481 20,006
Accrued OPEB liability 796 1,758 1,183 3,737
Rent concession liability (11,000) (11,000)
Total adjustments 94,279 528,338 31,957 654,574
Net cash provided (used) by operating activities 69,847 (104,496) (142,736) (177,385)
Cash and cash equivalents reconciliation:
Current assets:
Cash and cash equivalents 4,779 90,600 25,501 120,880
Investments 811,369 811,369
Restricted assets:
Investments 98,320 98,320
Cash and cash equivalents at September 30 103,099 90,600 836,870 1,030,569
The accompanying notes to fmancial statements are an integral part of this financial statement.
26
643,466
ASSETS
Cash and cash equivalents
Interest and dividends receivable
LIABILITIES
NET ASSETS
City of Sebastian, Florida
Statement of Fiduciary Net Assets
Fiduciary Funds
September 30, 2009
27
Pension
Trust Agency
Police
Officers' Performance
Pension Deposits
700,130 12,760
26,685
Investments, at fair value:
Local government surplus trust funds investment pool
United States treasuries 191,316
United States agency notes 1,110,556
Domestic corporate bonds 1,253,111
Municipal Obligations 85,955
Domestic corporate equities 2,633,202
Total investments 5,274,140
Total assets 6,000,955
Held in trust for pension benefits 6,000,955
The accompanying notes to financial statements are an integral part of this financial statement.
220,000
220,000
232,760
Refunds payable 232,760
Total liabilities 232,760
ADDITIONS
DEDUCTIONS
City of Sebastian, Florida
Statement of Changes in Fiduciary Net Assets
Fiduciary Fund Pension Trust
For the Year Ended September 30, 2009
28
Police
Officers'
Pension
Contributions:
Employer 404,104
Plan members 114,229
State 137,782
Total contributions 656,115
Investment earnings:
Net decrease in fair value of investments (122,462)
Interest and dividends 165,741
Total investment earnings 43,279
Less investment expenses (31,076)
Net investment earnings 12,203
Total additions 668,318
Benefits 105,203
Refunded contributions 28,205
Administrative expenses 8,771
Total deductions 142,179
Change in net assets 526,139
Net assets beginning of year 5,474,816
Net assets end of year 6,000,955
The accompanying notes to financial statements are an integral part of this financial statement.
City of Sebastian, Florida
Notes to the Financial Statements
September 30, 2009
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Sebastian (the "City"), a Florida Municipal Corporation, was incorporated in 1924 under Sections 1826 -1832 of the Revised
Florida Statutes. The City has a population of 22,722 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 U.S. generally accepted accounting principles as applied to
governmental units. The more significant of the City's accounting policies are described below:
A. Reporting Entity
In evaluating the City as a reporting entity, management has included all component units in accordance with Governmental
Accounting Standards Board (GASB) Statement No. 14, "Defining the Financial Reporting Entity" and Statement No. 39 an
amendment of GASB No. 14. The Financial Reporting Entity consists of the City of Sebastian (the primary government) and its
blended component units. Blended component units are legally separate organizations for which the City Council is financially
accountable. The component units discussed below are included in the City's reporting entity.
Blended Component Units
The following 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 or because the component unit exclusively serves the City.
Community Redevelopment Agency (CRA) The governing body of the CRA is the Sebastian City Council. The CRA is accounted
for in a special revenue fund entitled "Riverfront Redevelopment F.S. Section 163.387(8) requires an independent audit of the fund
each fiscal year and a report of such audit. The City has presented the CRA as a major fund of the City to satisfy this requirement
simply due to the scope of the audit for a major fund is broader than a non -major fund.
City of Sebastian Police Officers' Pension Plan The City Council only appoints two of the five members of the governing board,
but it is financially responsible for funding the police officers' pension benefits. The City of Sebastian Police Officers' Pension Trust
Fund only exists to provide pension benefits to City of Sebastian police officers. It is accounted for as a Pension Trust fund entitled
"Police Officers' Pension
B. Government -wide and fund financial statements
The government -wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) report
information on all of the nonfiduciary activities of the primary government and its blended 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.
Separate fund 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.
GASB Statement No. 34 Basic Financial Statements and Management Discussion and Analysis for State and Local Governments sets
forth minimum criteria (percentage of the assets, liabilities, revenues or expenditures /expenses of either fund category or the
governmental and enterprise funds combined) for the determination of major funds. The nonmajor funds are combined in a column
in the fund financial statements and detailed in the combining section.
29
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
1. Economic Resources Measurement Focus and Accrual Basis of Accounting
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. This means that revenues are recorded when
earned and expenses are recorded when a liability is incurred, regardless of the timing of the 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.
In applying the "susceptible to accrual" concept to intergovernmental revenues pursuant to GASB Statement No. 33, Accounting
and Financial Reporting for Nonexchange Transactions as amended by GASB Statement No. 36, Recipient Reporting of Certain
Shared Nonexchange Revenues (the City may act as either provider or recipient), the provider should recognize liabilities and
expenses and the recipient should recognize receivables and revenue when the applicable eligibility requirements including time
requirements, are met. Resources transmitted before the eligibility requirements are met should, under most circumstances, be
reported as advances by the provider and deferred revenue by the recipient.
Private- sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both
the government -wide and proprietary fund financial statements to the extent that those standards do not conflict with or
contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following
subsequent private- sector guidance for their business -type activities and enterprise funds, subject to this same limitation. The
government has elected not to follow subsequent private- sector guidance.
As a general rule the effect of interfund activity has been eliminated from the government -wide financial statements.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by
program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program
revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among program revenues are
reported instead as general revenues.
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 golf course fund and the building fund are charges to customers for
services and for the airport fund lease revenue. Operating expenses for enterprise funds include 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.
The agency fund reports only assets and liabilities; therefore, it does not have a measurement focus. However, it uses the accrual
basis of accounting to recognize receivables and payables.
2. Modified Accrual
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. "Available" means
collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this
purpose, the City considers revenues to be available if they are collected within sixty (60) days of the end of the current fiscal
period except grant revenues. The City considers grant revenues to be available if they are collected within one year of the end
of the current fiscal period. All material revenues, except for property taxes, are considered measurable and available and are
thus susceptible to accrual. Expenditures are generally recognized under the modified accrual basis of accounting when the
related fund liability is incurred, if measurable. An exception to this general rule is principal and interest on general long -term
obligations, which are recognized when due.
Property taxes, public utility taxes, franchise fees, sales and fuel taxes, licenses, and interest associated with the current fiscal
period are all considered to be susceptible to accrual and so have been recognized as revenues in the current fiscal period. Only
the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as
revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received
by the City.
30
The government reports the following major governmental funds:
The general fund is the government's primary operating fund. It accounts for all financial resources of the
general government, except those required to be accounted for 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 transportation improvements fund accounts for transportation related construction such as, roads,
intersections, and sidewalks and is funded with governmental resources, impact fees, local option gas tax, and
state grants.
The stormwater utility improvements fund accounts for the resources associated with debt and stormwater
assessment fees for the purpose of constructing stormwater related improvements.
The government reports the following major proprietary funds:
The golf course fund accounts for the activities of the municipal golf course.
The airport fund accounts for the activities of the municipality's general aviation airport.
The building fund accounts for the activities associated with the building permit and inspection program.
Additionally, the government reports the following fund types:
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 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.
D. Assets, Liabilities and Fund Equity
1. Cash and cash equivalents
Cash and cash equivalents represents all investments that are short term, highly liquid, and readily convertible to a specified
cash value. These investments generally have original maturities of three months or less. Cash equivalents consist of cash in
banks and on hand.
2. 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 (Pool A and Pool B). 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 Pool A. In accordance with the regulations of 2a -7 like pools, the City's share of investments held
at the State Board of Administration in Pool A 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 of Pool A 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. Investments in the State Board of Administration account in Pool B are reported at
fair value and as income and returns of principal become available, they are transferred to Pool A. 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.
3. Interfund Receivables and Pavables
During the course of operations, transactions occur between individual funds that may result in amounts owed between funds.
Short-term interfund loans are reported as "due to and from other funds Due to and from other funds are eliminated in the
Statement of Net Assets. There were no interfund loans between the Governmental funds and Proprietary funds as of September
30, 2009.
Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable
governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.
As of September 30, 2009, the airport fund has been advanced $200,000 from the general fund and $285,000 from the
discretionary sales tax fund.
31
4. Receivables
Receivables consist of trade receivables, due from other governments and interest receivable (see Note IV.C. on page 39 for
detail) and are recorded at the net realizable value. The City, as of September 30, 2009, has no allowance for doubtful accounts,
since all receivables are considered collectible.
5. Inventory and Prepaid Items
Inventory is 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
government -wide and fund financial statements.
6. Restricted Assets
Certain net assets of the City are classified as restricted assets on the statement of net assets because their use is limited either by
law through constitutional provision or enabling legislation; or by restrictions imposed externally by creditors, grantors,
contributors, or laws or regulations of other governments. In a fund with both restricted and unrestricted assets, qualified
expenses are considered to be paid first from restricted net assets and then from unrestricted net assets.
7. Capital Assets
Capital assets, which include land, buildings, improvements, equipment, and infrastructure assets (e.g., roads, bridges,
sidewalks, and similar items), are reported in the applicable governmental or business -type activities columns in the
government -wide financial statements. The City defines capital assets as assets with an initial, individual cost of more than
$750 and an estimated useful life in excess of one year. Such assets are recorded at historical cost, if purchased, and at fair
market value at date of gift, if donated. Major additions are capitalized while maintenance and repairs that do not improve or
extend the life of the respective assets are expensed.
All infrastructure assets acquired prior to the implementation of GASB Statement 34 were capitalized as projects and were
completed or assets were acquired. Therefore, the initial capitalization of general infrastructure assets was not necessary.
Capital asset depreciation is recognized using the straight -line method over the estimated useful lives as follows:
Classification Range of Lives
Buildings and improvements 10-40 years
Public domain infrastructure 40 -50 years
System infrastructure 15 -30 years
Improvements other than buildings 10-40 years
Machinery, equipment and other 5 -15 years
Airport runways 20 years
8. 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.
9. Long -Term Liabilities
In the government -wide financial statements, and proprietary fund types in the fund financial statements, long -term debt and
other long -term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or
proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and
amortized over the life of the bonds using the straight -line method. Bonds payable are recorded net of the applicable bond
premium or discount. Bond issuance costs are reported as deferred charges and amortized over the life of the related debt. In
the fund financial statements, governmental fund types recognize bond premium and discounts, as well as debt 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.
32
10. Fund Equity
In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for
appropriation or are legally restricted by outside parties for use for a specific purpose. The nature and purpose of these reserves
are explained as follows:
Reserved for encumbrance represents encumbrances outstanding at year end that the City intends to
honor as commitments.
Reserved for debt service represents, in accordance with legal restrictions, amounts for payment of
principal and interest maturing in later years.
Reserved for capital projects represents amounts restricted for capital projects.
Reserved for property and casualty represents amounts restricted for property and casualty claims.
Reserved for cemetery care represents amounts restricted for use in cemetery maintenance.
Reserved for law enforcement represents, in accordance with State Statutes, funds required to be spent
on drug education and awareness activities.
Reserved for emergency services represents amount restricted for natural disasters.
Reserved for equipment replacement represents amounts restricted for the replacement of capital assets.
Designations of unreserved fund balances are not required by law or accounting principles, but are further classifications of fund
equity to identify funds that are not earmarked for specific purposes.
II. RECONCILIATION OF GOVERNMENT WIDE AND FUND FINANCIAL STATEMENTS
A. Explanation of Differences Between the Governmental Fund Balance Sheet and the Government -wide Statement
of Net Assets
The governmental fund balance sheet includes reconciliation between fund balance -total governmental funds and net assets
governmental activities as reported in the government -wide statement of net assets.
"Total fund balances" of the City's governmental funds ($15,155,532) differs from "net assets" of governmental activities
($39,444,354) reported in the statement of net assets. This difference primarily results from the long -term economic focus of the
statement of net assets versus the current financial resources focus of the governmental fund balance sheet. The effect of the
differences is illustrated below.
Capital related items
When capital assets (property, plant, equipment) that are to be used in the governmental activities are purchased or constructed, the
cost of those assets are reported as expenditures in governmental funds. However, the statement of net assets included those capital
assets among the assets of the City as a whole.
Cost of capital assets 59,557,028
Accumulated depreciation (20,883,744)
Total 38,673,284
Net pension obligation
When net pension obligation is a negative amount, the amount is presented as an asset on the statement of net assets.
Negative net pension obligation 165,630
Other post employment and termination benefits
Accrued other post employment and termination benefits are not financial uses, therefore, are not reported in the fund.
Other post employment benefits (304,288)
Termination benefits (21,879)
Total (326,167)
33
Long -term debt transactions
Long -term liabilities applicable to the City's governmental activities are not due and payable in the current period and accordingly
are not reported as fund liabilities (both current and long -term) are reported in the statement of net assets. Balances at September 30,
2009 were:
Bonds payable:
Infrastructure sales surtax revenue bonds,
Series 2003 $(6,255,000)
Less: Deferred charge for issuance costs 165,690 $(6,089,310)
Infrastructure sales surtax revenue bonds,
Series 2003A (1,470,000)
Less: Deferred charge for issuance costs 64,817 (1,405,183)
Stormwater utility revenue bonds,
Series 2003 (4,315,000)
Less: Deferred charge for issuance costs 138,017
Less: Deferred charge for bond discounts 10,416 (4,166,567)
Notes payable (1,089,203)
Less: Deferred charge for issuance costs 2,991 (1,086,212)
Contamination liability (91,200)
Compensated absences (1,245,805)
Total $(14,084,277)
Accrued interest
Accrued liabilities in the statement of net assets differs from the amount reported in governmental funds due to accrued interest on
bonds payable and notes payable.
Bonds (218,899)
Notes (4,533)
Total (223,432)
Accrued receivable
Some interest receivables are not financial resources in the current period, therefore, are not reported in the funds.
Interest receivables 5 83,784
34
B. Explanation of Differences Between the Governmental Fund Statement of Revenues, Expenditures, and Changes
in Fund Balances and the Government -wide Statement of Activities
The "net change in fund balances" for governmental funds (a decrease of $4,370,837) differs from the "change in net assets" for
governmental activities (an increase of $1,059,819) reported in the statement of activities. The differences arise primarily from the
long -term economic focus of the statement of activities versus the current financial resources focus of the governmental funds. The
effect of the differences is illustrated below.
Interest receivables
Some interest earnings reported in the statement of activities the prior year were reported as revenues in governmental funds.
Long -term debt transactions
Interest earnings (15,802)
Capital related items
When capital assets that are to be used in governmental activities are purchased or constructed, the resources expended for those
assets are reported as expenditures in governmental funds. However, in the statement of activities, the costs of those assets is
allocated over their estimated useful lives and reported as depreciation expense. As a result, fund balances decrease by the amount of
financial resources expended, whereas net assets decrease by the amount of depreciation expense charged for the year.
Capital outlay 6,495,271
Depreciation expense (2,288,781)
Difference 4,206,490
In the statement of activities, the gain and loss on the sale and disposal of capital assets are reported. However, in the governmental
funds, only the proceeds from the sale increase financial resources.
Loss on disposal of fixed assets (1,318)
Special Assessment
A payment of a special assessment was reported as revenue in the fund financial statements. However, this had been accrued in a
previous period on the government -wide financial statements.
Special assessment revenue (3,849)
Pension obligation
Overfunded pension contributions are reported as expenditures in the fund financial statements and recorded as a net pension asset on
the statement of assets.
Increase in net pension obligation 65,355
Repayments of bond principal, notes payable principal, and capital lease principal are reported as expenditures in the governmental
funds and, thus, have the effect of reducing fund balance because current financial resources have been used. However, the principal
payments reduce the liabilities in the statement of net assets and do not result in an expense in the statement of activities.
Bond principal payment made 975,000
Notes payable principal payment made 243,994
Total 1,218,994
Some expenses reported in the statement of activities do not require the use of current financial resources, therefore, are not reported
as expenditures in governmental funds.
Accrued arbitrage expense 26,091
Net change in compensated absences (7,499)
Net accrued bond interest expense 14,719
Net accrued notes interest expense 1,016
Amortization of issuance costs (39,741)
Other post employment benefits (28,459)
Termination benefits (5,341)
Net adjustment (39,214)
35
III. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Budgetary Information
Budgets are prepared annually on a modified accrual basis with encumbrance accounting for all govemmental 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. (See page 52 through page 54)
IV. DETAIL NOTES ON ALL FUNDS
A. Deposits
At September 30, 2009, the carrying amount of the City of Sebastian's deposits with banks was $3,312,752 and the bank balance was
$3,355,675. 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.
B. 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 to protect
City's cash and investment assets. The City maintains a common cash and investment pool for the use of all funds. Pension Trust
Funds are held with third party trustees and are governed by rules established by Florida Statute Chapter 185.
Investment holdings consist of $4,866,010 in United States Government Agencies which are 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 are held in trust by the City's bank depository in the City's name.
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 has a formal investment policy that 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.
36
As of September 30, 2009, the City had the following investments and effective duration presented in terms of years:
Investment Maturity (Year)
Investment Type Fair Value Less Than 1 From 1 -3 From 4 -6
Government -wide
Local government surplus fund trust
fund investment pool 5,660,131 5,660,131
United States Agencies 4,866,010 4,866,010
Certificate of deposit 1,651,844 540,759 1,111,085
12,177,985 11,066,900 1,111,085
Over 7
Fiduciary Funds
Local government surplus funds trust
fund "SBA 220,000 220,000
United States Treasuries 191,316 191,316
United States Agencies 1,110,556 66,991 231,828 263,808 547,929
Municipal Obligations 85,955 85,955
Domestic corporate bonds 1,253,111 102,694 155,871 627,950 366,596
Domestic corporate equities 2,633,202 2,633,202
5,494,140 3,022,887 387,699 891,758 1,191,796
Interest receivable on the government -wide and fiduciary investment portfolios amounted to $107,874 and $3,500, respectively, as of
September 30, 2009.
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 permits for investments in the following investments, which are limited to credit quality ratings from
nationally recognized agencies as follows:
Mutual funds shall be rated "m" or "AAm -G" or better by Standard 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 Poor's for long -term debt, or rated at least "MIG -2" by Moody's and `SP -2" by Standard 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 -1" by Moody's
Investors Services and "A -1" Standard Poor's. Commercial paper of any United States company that is rated, at the time of
purchase, "Prime -1" by Moody's and "A -1" by Standard 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 Poor's.
As of September 30, 2009, the City's investment securities were all individually rated AAA by Standard Poor's and Aaa by
Moody's Investor Services.
As of September 30, 2009, the city had $5,880,131 invested in the State Board of Administration's Local Government Surplus Trust
Funds Investment Pool, which consist of accounts in Pool A and Pool B. $5,683,046 is in Pool A and $197,085 is in Pool B. Pool A
had a rating by Standard and Poor's Rating Services as "AAAm" on September 30, 2009 and amounts may be withdrawn without
penalty. Pool B participants are prohibited from making withdrawals. Pool B is not rated by any nationally recognized statistical
rating agency. Additional information regarding the Local Government Surplus Funds Trust Fund may be obtained from the State
Board of Administration.
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. The allowable investment instruments include United States Government Obligations, Certificates of
Deposit, and Repurchase Agreements with major money center banks, Commercial Paper rated A -1 by Standard Poor's or P -1 by
Moody's or better, with the exception of the custodian's savings account. In addition, common stocks and equity securities having
prospects of attractive returns from a combination of appreciation are also allowed.
37
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.
As of September 30, 2009, the City's investment portfolio was held with a third -party custodian as required by the City's investment
policy.
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
any one 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 fends may be
invested in fixed income securities and a maximum of 50% of available funds may be invested in equity securities.
As of September 30, 2009, the City had the following issuer concentration based on fair value:
Issuer Amount
Local government surplus funds trust
fund "SBA 5,660,131
United States Treasuries
United States Agencies 4,866,010
Municipal Obligations
Certificate of deposit 1,651,844
Domestic corporate bonds
Domestic corporate equities
Total
12,177,985
Government -wide
Percentage of
Portfolio
38
46.48%
39.96%
13.56%
0.00%
0.00%
100.00%
Amount
Fiduciary
220,000
191,316
1,110,556
85,955
1,253,111
2,633,202
5,494,140
Funds
Percentage of
Portfolio
4.00%
3.48%
20.21
1.56%
0.00%
22.81%
47.93%
100.00%
C. Receivable and Payable Balances
Receivables
Receivables at September 30, 2009 were as follows:
Due From
Interest Accounts Other
Receivable Receivable Governments Total
Governmental activities:
General 107,853 266,902 307,932 682,687
Discretionary sales tax 6 193,509 193,515
Riverfront redevelopment 6 6
Transportation improvements 425,291 425,291
Stormwater utility improvements 81,200 81,200
Other governmental 9 71,002 71,011
Total governmental activities 107,874 266,902 1,078,934 1,453,710
Business -type activities:
Airport 1 76,184 76,185
Building 3,499 3,499
Total business -type activities 3,500 76,184 79,684
All receivables are anticipated to be collected.
Payables
Payables at September 30, 2009 were as follows:
Salaries Due to
and Other
Vendors Retainage Benefits Government Total
Governmental activities:
General 102,957 376,749 5,322 485,028
Riverfront redevelopment 35 35
Transportation Improvements 39,816 39,816
Stormwater utility improvements 395,450 237,457 632,907
Other governmental 146,408 146,408
Total governmental activities 684,666 237,457 376,749 5,322 1,304,194
Business -type activities:
Golf course 51,424 14,124 6,479 72,027
Airport 17,395 10,277 832 28,504
Building 6,668 10,475 17,143
Total business -type activities 75,487 34,876 7,311 117,674
Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to
liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have
been received, but not yet earned. At September 30, 2009, there was $2,784 reported as unearned revenues.
39
D. Capital Assets
Capital asset activity for the year ended September 30, 2009 was as follows:
Governmental activities:
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Total accumulated depreciation
Total capital assets, being depreciated, net
Governmental activities capital assets, net
Business type activities:
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Total accumulated depreciation
Total capital assets, being depreciated, net
Business -type activities capital assets, net
Beginning
Balance
5,696,946
1,520,565
7,217,511
11,158,739
5,149,267
7,390,752
22,259,149
45,957,907
Beginning
Balance
40
Increases
2,099
3,213,102
3,215,201
125,749
555,419
507,122
2,866,476
4,054,766
(2,287,911) (382,736)
(1,650,643) (256,580)
(5,441,254) (677,453)
(9,327,498) (972,012)
(18,707,306) (2,288,781)
27,250,601 1,765,985
34,468,112 4,981,186
Increases
Decreases
5,699,045
(774,696) 3,958,971
(774,696) 9,658,016
11,284,488
5,704,686
(113,661) 7,784,213
25,125,625
(113,661) 49,899,012
(2,670,647)
(1,907,223)
112,343 (6,006,364)
(10,299,510)
112,343 (20,883,744)
(1,318) 29,015,268
(776,014) 38,673,284
Decreases
Ending
Balance
Ending
Balance
9,060 9,060
115,951 138,392 (47,284) 207,059
125,011 138,392 (47,284) 216,119
3,726,258 1,355,862 5,082,120
1,866,928 88,303 (15,128) 1,940,103
922,575 148,454 (8,696) 1,062,333
6,226,110 11,689 6,237,799
12,741,871 1,604,308 (23,824) 14,322,355
(495,396) (112,334) (607,730)
(364,454) (120,147) 15,128 (469,473)
(563,742) (112,789) 8,696 (667,835)
(1,477,089) (298,196) (1,775,285)
(2,900,681) (643,466) 23,824 (3,520,323)
9,841,190 960,842 10,802,032
9,966,201 1,099,234 (47,284) 11,018,151
Depreciation expense was charged to functions /programs of the government as follows:
Governmental activities:
General government
Public safety
Transportation
Physical environment
Cultural and recreation
Total depreciation expense governmental activities
Business -type activities:
Golf Course
Airport
Building
Total depreciation expense- business -type activities
Construction Commitments
The City has various construction commitments outstanding at September 30, 2009. The major commitments include the following:
Proiect
Schumann Park Improvements
Pedestrian Bridges
Powerline Road
Schumann/Barber Intersection
Middle Stonecrop Improvements
Collier Creek Improvements
Blossom Ditch Phase II
1/4 Round Swale Rehabilitation
Potomac Road Crossing
George Street Ditch
Airport Access Road
Hangar Construction
Total
E. Advances
Advance balances at September 30
Advance from General Fund to the Airport Fund
Advance from Discretionary Sales Tax Fund to the Airport Fund
Total
Transfers In:
General Fund
Riverfront Redevelopment
Transportation Improvements
Stormwater Utility Improvements
Nonmajor Governmental Funds
Total Transfers Out
Remaining
Spent -to date Commitment
133,598
589,705
176,955
164,505
4,949,068
6,248
708,375
21,650
16,307
832,613
1,367,549
41,402
38,120
14,769
281,174
217,796
546,258
305,752
14,345
103,305
75,693
157,473
57,451
8,966,573 1,853,538
2009 consisted of the following amounts:
316,317
525,170
558,484
550,045
338,765
2,288,781
89,243
542,116
12,107
643,466
200,000
285,000
485,000
Major
Funding Source
Recreation Impact Fees
DST (Discretionary Sales Tax)
Contributions and DST (Discretionary Sales Tax)
DST (Discretionary Sales Tax)
Stormwater Fees
Bond Proceeds and Grants
DST (Discretionary Sales Tax)
DST (Discretionary Sales Tax)
DST (Discretionary Sales Tax)
Stormwater Fees
Grant and Airport Funds
Grant and Airport Funds
The balance of $285,000 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. The balance of $200,000 advanced to the airport from general fund represents a cash loan
made in 2007 without any specified terms for repayment.
F. Interfund Transfers
Transfers are used to 1) move revenues from the fund that statute or budget requires them to be collected in to the fund that statute or
budget requires for them to be expended in, and 2) utilize discretionary sales tax revenues for infrastructure improvements and
equipment purchases which must be accounted for in other funds. Following is a schedule of Interfund Transfers:
Discretionary
Sales Tax
Fund
108,159
57,641
2,613,569
Riverfront
Redevelopment
60,000
41
Transfer Out:
Nonmajor
Transportation Govemmental
Improvements Funds Total
761,538 821,538
668,590 668,590
108,159
15,787 73,428
231,508 679,584 3,524,661
2,779,369 60,000 900,098 1,456,909 5,196,376
G. Leases
1. Operating Leases Lessee
The City is obligated under certain leases for land and golf carts accounted for as operating leases. Operating leases do not give rise
to property rights or lease obligations. Total costs for such leases were $235,820 for the fiscal year ended September 30, 2009.
These include the Airport Proprietary 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 operating leases in the Golf Course Proprietary fund that have
initial or remaining noncancelable lease terms in excess of one year as of September 30, 2009:
2. Operating Leases Lessor
Golf Course
Golf
Year Ending September 30, to: Airport Carts
2010 135,000 132,075
2011 135,000
2012 135,000
2013 135,000
2014 135,000
2015 135,000
Totals 810,000 132,075
The City is the lessor in two communication tower leases with lease terms of up to fifty -five years. The tower has a cost of $39,285
and a carrying value of $8,675. For fiscal year 2009, total depreciation expense for the leased tower is $1,865. Following is a
schedule by year of minimum future rental income on noncancelable operating leases:
Governmental
Year Ending September 30, Activities
2010 60,967
2011 62,182
2012 66,326
2013 67,641
2014 69,008
2015 -2019 377,909
2020 -2024 365,995
2025 -2029 377,305
2030 -2034 441,522
2035 -2039 519,652
2040 -2044 614,709
2045 -2049 730,360
2050 -2054 871,067
2055 193,673
Total minimum future rentals 4,818,316
The airport 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 Proprietary Fund requiring annual payments of $135,000 through 2015. Following is a
schedule by year of minimum future rental income on noncancelable operating leases:
Business -type
Year Ending September 30, Activities
2010 319,578
2011 322,754
2012 327,132
2013 332,711
2014 339,620
2015 -2019 1,725,632
2020 -2024 1,875,267
2025 -2029 2,103,337
2030 -2034 1,433,671
2035 168,078
Total minimum future rentals 8,947,780
42
H. Long -term Obligations
1. Revenue Bonds/Notes
Revenue bonds/notes are secured by and payable from the revenues of the respective funds that issued them.
a. The City entered into a fifteen (15) year loan agreement in 1998 with a local bank for $3,268,890 to provide financing to
repave certain roads in the City. The City pledged Local Option Gas Tax and Municipal Gas Tax to repay the note payable.
The funds are accumulated in the Local Option Gas Tax Special Revenue fund for repayment of principal and interest.
b. The City issued a ten (10) year, $2,435,000 Recreational Facilities Improvement and Refunding Revenue Bonds, Series
2001 in March 2001. The City has pledged Golf Course revenues along with a covenant to budget and appropriate for
repayment of principal and interest.
c. The City issued a fifteen (15) year, $9,500,000 Infrastructure Sales Surtax Revenue Bonds, Series 2003 in April 2003. The
City has pledged Infrastructure Sales Surtax revenues for repayment of principal and interest.
d. The City issued a fifteen (15) year, $2,125,000 Infrastructure Sales Surtax Revenue Bonds, Series 2003A in December
2003. The City has pledged Infrastructure Sales Surtax revenues for repayment of principal and interest.
e. The City issued a nineteen (19) year, $5,630,000 Stormwater Utility Revenue Bonds, Series 2003 in November 2003. The
City has pledged Stormwater Fee Revenues along with a covenant to budget and appropriate for repayment of principal and
interest.
2. Bond Coverage
a. The City has covenanted in the Recreational Facilities Improvement and Refunding Revenue Bonds, Series 2001 Bond
Resolution to fix, establish and maintain such rates, fees, rentals and other charges and collect such fees, rates, rentals, and
other charges for the product, services, facilities and use of its facilities, and revise the same from time to time, whenever
necessary, as will always provide in each fiscal year net revenues equal to at least one hundred twenty-five percent (125
of the annual debt service becoming due in such fiscal year.
The following table indicates the degree of compliance with the bond resolution covenants in the Golf Course Fund at
September 30, 2009.
Gross revenues available for compliance (charges
for services, interest, and rent revenues)
Operating and maintenance
expenses (excluding depreciation expense, amortization,
and airport lease payment)
Amount of revenue over
direct operating expenses
Debt service requirement
Percent coverage for the year
ended September 30, 2009
City management continues to closely monitor the Golf Course operation and develop recommendations to improve its
financial position.
b. The City has covenanted in the Stormwater Utility Revenue Bonds, Series 2003 Bond Resolution to fix, establish, maintain
and collect stormwater fees, and revise the same from time to time whenever necessary, so as to always provide in each
fiscal year stormwater fee revenues and investment earnings equal to at least one hundred thirty-five percent (135 of the
annual debt service becoming due in each fiscal year.
The following table indicates the degree of compliance with the bond resolution covenants in the stormwater utility fund at
September 30, 2009.
Gross revenues available for compliance 814,419
Debt service requirement 440,135
Percent coverage for the year
ended September 30, 2009 185%
43
1,408,535
1,178,144
230,391
310,090
74%
3. Changes in Long -term Liabilities
The following is a summary of changes in Long -Term Liabilities of the City for the year ended September 30, 2009:
Beginning Ending Due within
Balance Additions Reductions Balance One Year
Governmental activities:
Bonds payable:
Infrastructure Sales Surtax Revenue
Bonds, Series 2003 6,840,000 585,000 6,255,000 600,000
Infrastructure Sales Surtax Revenue
Bonds, Series 2003A 1,605,000 135,000 1,470,000 145,000
Stormwater Utility Revenue Bonds,
Series 2003 4,570,000 255,000 4,315,000 260,000
Less deferred amount:
Issuance discount- Stormwater Utility Revenue
Bonds, Series 2003 (11,249) (833) (10,416)
Total bonds payable 13,003,751 974,167 12,029,584 1,005,000
Notes payable 1,333,197 243,994 1,089,203 254,848
Compensated absences 1,238,307 572,748 565,250 1,245,805 187,159
Unfunded OPEB obligation 275,829 28,459 304,288
Termination benefits 16,538 5,341 21,879 13,464
Pollution Remediation Liability 91,200 91,200
Governmental activity
long -term liabilities 15,867,622 697,748 1,783,411 14,781,959 1,460,471
Beginning Ending Due within
Balance Additions Reductions Balance One Year
Business -type activities:
Bonds payable:
Recreational Facilities Improvement and
Refunding Revenue Bonds, Series 2001 870,000 570,000 300,000
Less deferred amount:
Issuance premium 1,594 798 796
Loss on refunding (16,643) (8,323) (8,320)
Total bonds payable 854,951 562,475 292,476
Compensated absences 174,802 72,580 52,574 194,807 10,544
Unfunded OPEB obligation 36,957 3,737 40,694
Termination benefits 19,439 13,268 6,171 6,171
Business -type activity
Tong -term liabilities 1,086,149 76,317 628,317 534,148 16,715
For the governmental activities, compensated absences are generally liquidated by the general fund.
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 current liability of $91,200.
This has been reclassified and shown as a long -term liability.
44
4. Debt Service Requirements to Maturity
The annual requirement to amortize all bonded debt outstanding at September 30, 2009, including interest requirements, is as
follows:
Govemmental Activities
Roadway Infrastructure Infrastructure Stormwater
Improvement SalesSurtax SalesSurtax Utility
Note Revenue Bonds, Revenue Bonds, Revenue Bonds,
Fiscal Payable Series 2003 Series 2003A Series 2003
Year 4.40% Interest 2% to 4.125% Interest 2% to 4% Interest 2% to 4.5% Interest
2010 254,843 45,157 600,000 233,856 145,000 56,037 260,000 177,485
2011 266,180 33,820 620,000 214,356 145,000 51,325 270,000 169,035
2012 278,019 21,981 645,000 193,276 150,000 46,250 280,000 159,247
2013 290,161 9,839 665,000 170,378 155,000 40,813 290,000 148,048
2014 690,000 146,106 160,000 35,000 305,000 136,448
2015 -2019 3,035,000 310,506 715,000 72,600 1,705,000 494,121
2020 -2022 1,205,000 110,025
1,089,203 110,797 6,255,000 1,268,478 1,470,000 302,025 4,315,000 1,394,409
I. Restricted Assets:
Business -type Activities
Golf Course
Refunding
Bonds,
Fiscal Series 2001
Year 4% to 4.2% Interest
2011 300,000 6,300
Less unamortized
Bond premium 796
Loss on refunding (8,320)
292,476 6,300
Certain cash and claims to cash, that are legally restricted, have been shown as restricted in the statement of net assets as follows:
Govermental Business -type
Activities Activities
Debt service 1,554,128
Capital projects 4,774,624
Rent 98,320
Cemetery perpetual care 830,028
Law enforcement forfeiture fund 53,600
Community redevelopment agency 984,638
Total 8,197,018 98,320
The government -wide statement of net assets reports $8,295,338 of restricted net assets, of which all is restricted by enabling
legislation.
45
V. OTHER INFORMATION
A. Property Tax
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, 2009, was 3.3456 mills. Total tax collections were approximately 93.38% 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 1 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.
B. Grants from Other Governmental Units
Federal, State and local government grants represent an important source of supplementary funding used to finance infrastructure,
recreation, law enforcement, and environmental activities beneficial to the community. These grants are recorded in the General,
Special Revenue, Capital Project, and Enterprise funds. A grant receivable is recorded when the project funds have been expended
and the City has a right to reimbursement and expects to receive the grant within a year under the related grant. The grants normally
specify the purpose for which the funds may be used and are subject to audit by the grantor agency or its representative.
The following is the amount of grant revenue for fiscal year 2009.
C. Police Pension Plan Defined Benefit Plan
Primary Government Amount
Public safety 41,742
Physical environment 500,000
Transportation 18,559
Cultural/Recreation 751,423
Airport 1,351,914
Total reporting entity 2,663,638
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 biennial actuarial valuation completed October 7, 2009 to determine the required contribution for the fiscal year ending
September 30, 2010. 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.
Employee membership data as of the actuarial report is as follows:
Retirees and beneficiaries currently receiving benefits 4
Terminated employees entitled to refund of employee
Contribution but not yet received 1
Fully, partially, and non vested active plan participants 38
Total 3�
Benefit Provisions and Contribution Requirements. The Police Officers' Pension Plan provides retirement and disability benefits to
plan members and beneficiaries. This Plan is administered by a separate local Board of Trustees. Chapter 185, Florida Statutes, as
amended governs all benefit provisions of the Plan. Contribution requirements, in accordance with Chapter 185, Florida Statutes, are
established by City ordinance, as provided in Chapter 58, Article III of the Sebastian City Code. The City Council has the authority
to amend funding requirements.
Funding Policy. The employer, employee, and State contribution requirements are applicable to the Plan and actuarially determined
on a bi- annual basis in accordance with Florida State Statute. Administration costs of the pension plan are financed by the Plan. The
employee contribution rate, expressed as a percentage of compensation, was 5.0% for the 2008 -2009 fiscal year. The employer
contribution rate, expressed as a percentage of compensation, was 24.7% for the 2008 -2009 fiscal year. The employer contribution is
$404,104 and the State contribution is $137,782, which represents state shared revenue that is levied on property and casualty
insurance premiums and collected by the State. The State contribution was recognized and recorded in the general fund and the
corresponding expenditure was recorded as public safety expenditure. The City is required to contribute the remaining amounts to
ensure that the Plan is actuarially sound.
46
Annual pension costs and related information was as follows:
Contribution rates as of 9/30/08:
City
Plan members
Annual pension cost
Contributions made
Valuation date
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Required trend information for the Police Officers' Pension Plan was as follows:
Actuarially Required Contribution
2006
2007
2008
Percentage of APC contributed
2006
2007
2008
17.8%
5.0%
334,128
376,769
10/1/2006
Frozen Entry Age
Level Percentage of Pay, Closed
26 Years (as of 10/01/2006)
Market Value
Amount
243,301
289,390
334,128
90.00%
102.00%
113.00%
The annual required contribution for the Police Officers' Pension Plan was determined as part of the October 1, 2008, actuarial
valuation using the aggregate actuarial cost method. This method does not identify or separately amortize unfunded actuarial accrued
liabilities. The actuarial assumptions included (a) an 8.0% rate of return (net of administrative costs) and (b) projected salary
increases of 6% per year, including inflation at 3
Reserves. All of the net assets of the Police Pension Plan are legally reserved for plan participant benefits.
Basis of Accounting. Financial statements are prepared using the accrual basis of accounting. Plan member contributions are
recognized in the period in which the contributions are due. Employer contributions are recognized when due, and the employer has
made formal commitment to provide the contributions. Benefits and refunds are recognized when due and payable in accordance
with the terms of the Plan.
Method Used to Value Investments and Concentration of 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.
Development of Net Pension Obligation (NPO)
This municipal Defined Benefit Plan has been subject to the minimum funding standards since the adoption of the "Florida Protection
of Public Employee Retirement Benefit Act" (Part VII of Chapter 112, Florida Statutes) in 1980. Accordingly, the sponsor has
funded the actuarially determined required contributions for all years from October 1, 1987, through the transition date, October 1,
1997. Thus, the NPO on October 1, 1997, is $0.
The funding status as required by GASB Statements No. 25 and 27 is presented in the required supplemental information section on
page 56.
47
The development of the Net Pension Obligation as of September 30, 2008 is as follows:
9/30/2006
Actuarially Determined Contribution (A) 243,301 289,390 334,128
Interest on NPO (11,889) (9,753) (9,948)
Adjustment to (A) 15,181 12,454 11,314
Annual Pension Cost
Contributions made
Increase in NPO 26,695 (2,443) (41,275)
NPO beginning of year (148,607) (121,912) (124,355)
NPO end of year
D. CWA ITU Ne2otiated Pension Plan Defined Benefit Plan
(121,912) (124,355) (165,630)
Plan Description: The CWA/ITU Negotiated Pension Plan (NPP), which began in 1967, is a multi employer, defined benefit plan.
The Plan is available to any Communication Workers of America (CWA) bargaining unit member, and benefits are portable from one
contributing employer to another.
Normal Pension: Minimum age 65: 5 years of Service Credit required if any portion of service credit was earned after January 1,
1989. 10 years of Service Credit required if employees' coverage ended before January 1, 1989. Once the Service Credit amount is
accrued, the employee is vested and cannot lose the right to a pension.
Early Pension: Minimum age 60: 20 years of Service Credit required if employed after January 1, 1989. 25 years of Service Credit
required if employment ended before January 1, 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 five 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 is in receipt of a Social Security Disability Award and is vested, but not immediately
eligible to receive any pension described above, the employee may be eligible for a lump sum equal to total contributions credited on
the employees behalf (or 36 times the Normal Pension amount, if greater). If the employee is immediately eligible for a pension but
not yet receiving one, the employee can still qualify for a lump sum if the employee submits two physicians' written statements that
the disability will lead to death within one year of the date of application.
Death Benefit: If the employee dies before becoming a pensioner and has at lease $250 contributed on the employees' behalf, a lump
sum death benefit equal to total contributions credited on the employees' behalf or 36 times the Normal Pension amount, if greater,
will be paid to employees' beneficiary. If the employee is married at the time of death, the spouse will have the choice of a Lump sum
or a monthly survivor benefit.
Withdrawal Benefit: If the employee did not earn enough Service Credit to qualify for a Normal Pension, the employee may be
eligible for a lump sum withdrawal benefit, based on total contributions, after the employee has incurred a break in service.
Benefit Provisions and Contribution Requirements: The NPP provides retirement and disability benefits to plan members and
beneficiaries. The plan is administered at the Plan Office in Colorado Springs, Colorado. Contribution requirements are established
by the CWA contract, effective date October 1, 2006, which is negotiated every 3 years, and approved by City Council.
Funding Policy: Administration costs of the pension plan are financed by the plan. The employer contribution rate, expressed as a
percentage of compensation, was 9.00% for the 2007 -2008 fiscal year. Employees do not contribute to this plan. Contributions to the
CWA Pension Plan for the fiscal years ended September 30, 2007, 2008 and 2009 were $254,909, $241,718, and 254,997
respectively, which are equal to 100% of the required contribution for each year.
48
9/30/2007 9/30/2008
246,593 292,091 335,494
219,898 294,534 376,769
E. 401 Plan Defined Contribution Plan
Plan Description: The ICMA Retirement Corporation's 401 Retirement Plan is a Defined Contribution Plan "qualified" under
Section 401(a) of the Internal Revenue Code. Each participant has a plan account to which contributions are made. Plan benefits are
based on the total amount of money in the employees' account at retirement or other eligible event. The Plan is available to all
management staff and may be rolled over to another "qualified" employer plan that accepts rollovers, or Traditional IRA's.
Periodic Payments: Retirement benefits can be paid monthly, quarterly, semi -annual (at six -month intervals only) or annual
payments until assets are fully paid out.
Rollover: Retirement benefits can be rolled over to another employer plan (including a 457 deferred compensation plan) that accepts
rollovers, or to a Traditional IRA.
Lump Sum: Retirement benefits can paid either partially or by total distribution of the employees' account balance.
Annuities: Retirement benefits can be utilized to purchase an annuity.
Benefit Provisions and Contribution Requirements: The 401 provides retirement benefits to plan members and beneficiaries. The
plan is administered by the ICMA Retirement Corporation. Contribution requirements are established by the City of Sebastian,
Management Benefit Package, revised October 1, 2006, and approved by the City Manager.
Funding Policy: Administration costs of the pension plan are financed by the Plan. The employer contribution rate, expressed as a
percentage of compensation, was 9.00% for the 2008 -2009 fiscal year. Employees do not contribute to this Plan. Contributions to
the 401 Defined Contribution Plan for the fiscal years ended September 30, 2007, 2008, and 2009 were $136,222, $145,596, and
$152,078 respectively, which are equal to 100% of the required contribution for each year.
F. Other Post Employment Benefits (OPEB1
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.
Employees are eligible to receive benefits 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. The City pays 50% of the costs of
single coverage group health insurance for up to 2 years after retirement. No retirees are currently receiving medical benefits.
Based on GASB Statement 43 and 45, which set forth the guidelines and a future implementation timetable (for the City in fiscal year
2008/2009) for treatment of Other Post Employment Benefits. The City had an actuary calculate future funding requirements in 2007.
The purpose was to enhance the City's understanding of the OPEB obligation and to revisit potential policy implications associated
therewith. The actuary's 2007 estimate, using the Projected Unit Credit Method, produced an unfunded obligation of $281,842 and an
annual required contribution of $40,089. The City elected to fund the OPEB obligation on a pay -as- you -go basis. The entire unfunded
obligation was recognized in the government -wide financial statements. The enterprise fund portion ($33,365) was also recognized in
the enterprise fund financial statements. In 2008 and 2009, the City recorded an additional government -wide obligation of $30,943
and $32,197, respectively, based on the annual required contribution reduced by the expected future benefit payments. The
additional enterprise fund portion was calculated as $3,592 in 2008 and $3,737 in 2009.
G. Termination Benefits
The City offered its employees an early retirement incentive program in 2006 -2007 fiscal year. The eligibility requirements were that
the employee was either an exempt management employee or an hourly employee including police officers with at least 15 years of
service in a full time capacity and within three years of reaching the age of 65 (the age eligible for Medicare benefit). The benefits
include a one time lump sum payment based on the year of service and single coverage group health insurance for up to 3 years after
retirement. The lump sum payment was calculated by multiplying $1,000 for each full year of service. The group health insurance
will terminate when the retiree reaches the age of 65 and eligible for Medicare benefits. As of September 30, 2009, the total accrued
termination benefits for the government -wide financial statements were $28,050. The enterprise fund portion of $6,171 was also
recognized in the enterprise fund financial statements.
II. Insurance
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.
49
I. Litigation
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.
J. Grants
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. If any expenditures
were disallowed as a result of these audits, the claims for reimbursement to the grantor agency would become a liability of the City.
In the opinion of management, any such adjustments would not be significant.
K. Subsequent Event
On January 13, 2010, in recognition of the economic climate, the City amended the lease with LoPresti Aviation to provide a
temporary rent deferment. The amendment deferred the rent payments of $30,300 between February 2010 and October 2010.
Beginning in November 2010, the tenant will pay an additional $1,000 per month until the deferred amount is repaid.
To raise funds for roadway improvements and to take advantage of lower interest rates, the City executed a $2,462,000 Loan
Agreement with SunTrust Bank on February 17, 2010. This financing paid the principal, interest and prepayment penalty on the
1998 Loan Agreement and provided $1,250,000 of paving project funds. The Note will bear a 4.01% interest rate and be repaid over
a twelve year term ending December 1, 2021.
50
Required Supplemental Information
City of Sebastian, Florida
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
General Fund
For the Year Ended September 30, 2009
Actual Variance with
Budget Amounts Amounts on Final Budget
a Budgetary Positive
Original Final Basis (Negative)
REVENUES:
Taxes:
Property 4,252,958 4,252,958 4,276,800 23,842
Public utility 2,377,000 2,377,000 2,341,458 (35,542)
Franchise fees 1,305,000 1,305,000 1,327,253 22,253
Licenses and permits 55,200 55,200 29,151 (26,049)
Intergovernmental 2,052,529 2,234,142 2,000,872 (233,270)
Charges for services 327,301 327,301 288,881 (38,420)
Fines 59,600 59,600 59,411 (189)
Investment earnings 307,200 307,200 167,396 (139,804)
Contributions and donations 37,900 37,900 28,462 (9,438)
Other revenue 145,659 145,659 143,908 (1,751)
Total revenues 10,920,347 11,101,960 10,663,592 (438,368)
EXPENDITURES:
Current:
General government 2,993,590 3,055,970 2,975,171 80,799
Public safety 4,826,931 5,044,544 4,999,588 44,956
Physical environment 1,452,715 1,441,215 1,433,574 7,641
Transportation 1,465,116 1,463,416 1,459,984 3,432
Culture and recreation 1,112,395 1,149,395 1,148,408 987
Total expenditures 11,850,747 12,154,540 12,016,725 137,815
Excess (deficiency) of revenues
over (under) expenditures (930,400) (1,052,580) (1,353,133) (300,553)
OTHER FINANCING SOURCES
Transfers in 849,000 827,284 821,538 (5,746)
Total other financing sources 849,000 827,284 821,538 (5,746)
Net changes in fund balances (81,400) (225,296) (531,595) (306,299)
Fund balances beginning 6,308,182 6,308,182 6,308,182
Fund balances ending 6,226,782 6,082,886 5,776,587 (306,299)
Explanation of differences:
Encumbrances for equipment and supplies ordered but not received are reported in the year
the orders are placed for budgetary purposes, but are reported in the year the equipment and
supplies are received for GAAP purposes.
Prior year encumbrances (8,473)
Amount reported as ending fund balance in the statement of revenues, expenditures and
changes in fund balance for the General Fund. 5,768,114
The accompanying notes to required supplementary information are an integral part of this schedule.
52
City of Sebastian, Florida
Schedule of Revenue, Expenditures, and Changes m Fund Balances Budget and Actual
Discretionary Sales Tax Special Revenue Fund
For the Year Ended September 30, 2009
Actual Variance with
Budget Amounts Amounts on Final Budget
a Budgetary Positive
Original Final Basis (Negative)
REVENUES:
Taxes:
Sales 2,400,000 2,400,000 2,328,648 (71,352)
Investment earnings 78,000 78,000 4,452 (73,548)
Total revenues 2,478,000 2,478,000 2,333,100 (144,900)
O1IIER FINANCING SOURCES (USES)
Transfers out (3,267,957) (3,392,957) (2,779,369) 613,588
Total other financing sources (uses) (3,267,957) (3,392,957) (2,779,369) 613,588
Net changes in fund balances (789,957) (914,957) (446,269) 468,688
Fund balances beginning 1,404,945 1,404,945 1,404,945
Fund balances ending 614,988 489,988 958,676 468,688
The accompanying notes to required supplementary information are an integral part of this schedule.
53
City of Sebastian, Florida
Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual
Riverfront Redevelopment Agency Special Revenue Fund
For the Year Ended September 30, 2009
Actual Variance with
Budget Amounts Amounts on Final Budget
a Budgetary Positive
Original Final Basis (Negative)
REVENUES:
Taxes:
Property 528,092 528,092 525,124 (2,968)
Investment earnings 26,000 26,000 1,990 (24,010)
Total revenues 554,092 554,092 527,114 (26,978)
EXPENDITURES:
Current:
Economic environment 123,100 188,100 167,470 20,630
Total expenditures 123,100 188,100 167,470 20,630
Excess of revenues over
over expenditures 430,992 365,992 359,644 (6,348)
OTHER FINANCING SOURCES (USES)
Transfers in 45,000 668,590 623,590
Transfers out (60,000) (60,000) (60,000)
Total other financing (uses) (60,000) (15,000) 608,590 623,590
Net changes in fund balances 370,992 350,992 968,234 617,242
Fund balances beginning 16,404 16,404 16,404
Fund balances ending 387,396 367,396 984,638 617,242
The accompanying notes to required supplementary information are an integral part of this schedule.
54
A. Budgetary Basis
B. Budgetary Information
City of Sebastian, Florida
Notes to the Required Supplementary Information Budget Comparisons
September 30, 2009
Annual budgets are adopted 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. Since all accounting principles applied for purposes
of developing data on a budgetary basis differ significantly from those used to present financial statements in conformity
with U.S. generally accepted accounting principles, reconciliations of the resultant timing differences have been
provided on page 51 through page 54. All annual appropriations lapse at year -end.
The appropriated budget is prepared by fund, function, and department. The government's department heads, with the
City manager's approval, may make transfers of appropriations within a department or division. Transfers of
appropriations between departments require approval of the City council. The legal level of budgetary control (i.e., the
level at which expenditures may not legally exceed appropriations) is the fund level. The council made four
supplementary budgetary appropriations throughout the year. The 1s quarter budget amendment highlighted a net
increase of $103,538 for the general fund, which represents fund balance carried over from prior fiscal year to fund
outstanding encumbrances and some appropriations of revenues from insurance and grants. The 2n quarter budget
amendment highlighted a net increase of $21,925 for the general fund, which represents revenues from a grant and from
a private contribution. The 3` quarter budget amendment did not change the general fund but did include appropriations
of reserves in the discretionary sales tax, recreation impact fee and building funds. The 4 quarter budget amendment
highlighted a net increase of $147,800 for the general fund. The main reason for this increase is 1) to recognize a pass
through police pension contribution from the State, and 2) to fund the costs associated with an employee electing to use
the early retirement program.
C. Budgeted Expenditures Exceeded Revenues
Budgeted expenditures exceeded revenues in the general fund, discretionary sales tax special revenue fund, local option
gas tax special revenue fund, and the stormwater utility special revenue fund. However, this is pursuant to the legally
adopted budget to expend available fund equity (cash carry forward) and does not constitute a deficit.
55
City of Sebastian, Florida
REQUIRED SUPPLEMENTARY INFORMATION
Police Officers' Pension Plan
Governmental Accounting Standards Board Statements No. 25 and 27, Financial Reporting for Defined Benefit
Pension Plans and Note Disclosures for Defined Contribution Plans and Accounting for Pensions by State and Local
Governmental Employers require supplementary information be reported on the local pension plans in addition to
that provided in the Notes to the Financial Statements. This information, as amended by Statement No. 50, is
presented in the following schedules:
CITY OF SEBASTIAN
POLICE OFFICERS' PENSION PLAN
SCHEDULE OF FUNDING PROGRESS
LAST SIX FISCAL YEARS
Actuarial
Accrued UAAL as
Actuarial Liability Unfunded a of
Actuarial Value of (AAL) AAL Funded Covered Covered
Valuation Assets Entry Age (UAAL) Ration Payroll Payroll
Date (a) (b) (c) (a/b) (c) ((b -a) /c)
10/1/2008 5,474,816 6,127,531 652,715 89.35% 2,143,131 30.46%
10/1/2006 4,711,294 5,389,815 678,521 87.41% 1,769,613 38.34%
10/1/2004 3,536,724 4,251,736 715,012 83.18% 1,480,974 48.28%
10/1/2002 2,616,301 3,336,111 719,810 78.42% 1,184,967 60.75%
10/1/2000 2,200,969 2,200,969 100.00% 1,157,403 0.00%
SCHEDULE OF CONTRIBUTIONS FROM THE EMPLOYER
AND OTHER CONTRIBUTING ENTITIES
LAST SIX FISCAL YEARS
Annual
Fiscal Required City State Percentage
Year Contributions Contribution Contribution Contributed
2008 456,928 376,769 122,800 109.33%
2007 407,011 294,534 117,621 101.26%
2006 360,922 219,898 117,621 93.52%
2005 330,257 240,166 117,621 108.34%
2004 279,741 174,780 106,716 100.63%
2003 233,435 153,111 92,714 105.31%
56
Nonmajor Governmental Funds
Special Revenue Funds
Special revenue funds are used to account for specific revenues that are legally restricted to expenditures for
particular purposes.
Local Option Gas Tax Fund This fund is used to account for the government's share of motor fuel tax revenues
that are legally restricted to transportation related expenditures within the government's boundaries.
Recreation Impact Fee Fund This fund is used to account for recreation impact fees that are restricted for use in
the expansion or construction of recreational facilities.
Stormwater Utility Fee Fund This fund is used to account for fees collected on a per unit basis that are restricted
for the purposes of managing the City's Stormwater system.
Law Enforcement Forfeiture Fund This fund is used to account for the receipt of forfeited cash and equipment
associated with police activities and is restricted to police related equipment purchases and community education
initiatives.
Debt Service Fund
Debt service funds are used to account for the accumulation of pledged funds that are legally restricted to pay
debts.
Stormwater Utility Revenue Bonds Debt Service Fund This fund is used to account for the accumulation of
stormwater utility fees pledged to pay the principal, interest, and fiscal charges on the Stormwater Utility Revenue
Bonds.
Discretionary Sales Surtax Revenue Bonds Debt Service Fund This fund is used to account for the accumulation
of discretionary sales tax monies pledged to pay the principal, interest, and fiscal charges on the Discretionary
Sales Surtax Revenue bonds.
Capital Projects Funds
Capital projects funds are used to account for the acquisition and construction of major capital facilities other than
those financed by proprietary funds.
General Capital Projects Fund This fund is used to account for the construction of non stormwater related
improvements and general capital construction projects. Governmental resources and State grant revenues are
used to finance the improvements in this fund.
Capital Improvements Fund This fund is used to account for the accumulated resources associated with
infrastructure improvements such as parks and building.
Public Facilities Improvements Fund This fund accounts for the resources associated with debt for the purpose
of constructing and equipping a new city hall complex and renovation and expansion of the police station.
58
Permanent Fund
Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not
principal, may be used for purposes that support the reporting government's programs.
Cemetery Permanent Fund This fund is used to account for principal trust amounts received, sale of cemetery
lots and related interest income. One -half of the cemetery lot sales and the interest portion of the trust can be used
to maintain the community cemetery.
59
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
City of Sebastian, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2009
Local Law
Option Recreation Stormwater Enforcement
Gas Tax Impact Fee Utility Forfeiture Total
ASSETS
Cash and cash equivalents 18,676 251,906 45,680 13,227 329,489
Investments 15,958 835,445 724,792 48,906 1,625,101
Due from other governments 53,993 17,009 71,002
Interest receivable 2 2 4
Total assets 88,629 1,087,353 787,481 62,133 2,025,596
6,050
Special Revenue Funds
8,533 14,583
Total liabilities 6,050 8,533 14,583
Fund balances:
Reserved for:
Debt service
Capital projects
Cemetery care
Law enforcement 53,600 53,600
Unreserved 82,579 1,087,353 787,481 1,957,413
Total fund balances 82,579 1,087,353 787,481 53,600 2,011,013
Total liabilities and fund balances 88,629 1,087,353 787,481 62,133 2,025,596
Stormwater Discretionary
Utility Sales Surtax
Revenue Revenue
Bonds 2003 Bonds 2003 Total
145,309 411,516 556,825
1,000,298 1,000,298
1 4 5
145,310 1,411,818 1,557,128
144,635
Debt Service Funds
675 2,325 3,000
675 2,325 3,000
144,635 1,409,493 1,554,128
1,409,493 1,554,128
145,310 1,411,818 1,557,128
61
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Fund balances:
Reserved for:
Debt service
Cemetery care
Law enforcement
Unreserved
City of Sebastian, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2009
(Continued)
Capital Projects Funds
Permanent
Fund
General Public
Capital Capital Facilities
Projects Improvements Improvements Total Cemetery
ASSETS
Cash and cash equivalents 5,233 524,994 530,227 31,469
Investments 798,560
Due from other governments
Interest receivable
5,233 524,994 530,227 830,029
5,233 123,592 128,825
Total liabilities 5,233 123,592 128,825
Capital projects 401,402 401,402
830,029
Total fund balances 401,402 401,402 830,029
Total liabilities and fund balances 5,233 524,994 530,227 830,029
62
Total
Other
Governmental
Funds
1,448,010
3,423,959
71,002
9
4,942,980
146,408
146,408
1,554,128
401,402
830,029
53,600
1,957,413
4,796,572
4,942,980
63
City of Sebastian, Florida
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2009
Special Revenue Funds
Local Law
Option Recreation Stormwater Enforcement
Gas Tax Impact Fee Utility Forfeiture Total
REVENUES:
Taxes:
Motor fuel 593,776 593,776
Intergovernmental 18,559 18,559
Impact fees 13,975 13,975
Charges for services 807,971 807,971
Fines 29,527 29,527
Investment earnings 3,703 201 6,448 267 10,619
Contributions and donations 1,456 1,456
Other revenue 453 453
Total revenues 616,038 14,176 814,419 31,703 1,476,336
EXPENDITURES:
Current:
Public safety
Physical environment 8,794
Transportation 244,467
Debt Service:
Principal 243,995
Interest and fiscal charges 56,005
Capital outlay
7,935
22,115
7,935
8,794
244,467
243,995
56,005
22,115
Total expenditures 544,467 8,794 30,050 583,311
Excess (deficiency) of revenues
over (under) expenditures 71,571 14,176 805,625 1,653 893,025
OTHER FINANCING
SOURCES (USES)
Transfers in 217,508 217,508
Transfers out (215,784) (177,724) (1,030,147) (1,423,655)
Total other financing sources (uses) (215,784) 39,784 (1,030,147) (1,206,147)
Net changes in fund balances (144,213) 53,960 (224,522) 1,653 (313,122)
Fund balances beginning 226,792 1,033,393 1,012,003 51,947 2,324,135
Fund balances ending 82,579 1,087,353 787,481 53,600 2,011,013
Stormwater Discretionary
Utility Sales Surtax
Revenue Revenue
Bonds 2003 Bonds 2003 Total
443,185
(443,101)
Debt service Funds
84 707 791
84 707 791
255,000 720,000 975,000
188,185 461,903 650,088
1,181,903 1,625,088
(1,181,196) (1,624,297)
501,860 2,251,783 2,753,643
501,860 2,251,783 2,753,643
58,759 1,070,587 1,129,346
85,876 338,906 424,782
144,635 1,409,493 1,554,128
65
City of Sebastian, Florida
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2009
(Continued)
Excess (deficiency) of revenues
over (under) expenditures
66
Capital Projects Funds
General Public
Capital Capital Facilities
Projects Improvements Improvements Total Cemetery
Permanent
Fund
REVENUES:
Taxes:
Motor fuel
Intergovernmental
Impact fees
Charges for services 89,309
Fines
Investment earnings 2,047
Contributions and donations 6,000 6,000
Other revenue
Total revenues 6,000 6,000 91,356
EXPENDITURES:
Current:
Public safety
Physical environment
Transportation
Debt Service:
Principal
Interest and fiscal charges
Capital outlay 364,607 232,828 597,435
Total expenditures 364,607 232,828 597,435
(364,607) (226,828) (591,435) 91,356
OTHER FINANCING
SOURCES (USES)
Transfers in 361,786 191,724 553,510
Transfers out (33,254)
Total other financing sources (uses) 361,786 191,724 553,510 (33,254)
Net changes in fund balances (2,821) (35,104) (37,925) 58,102
Fund balances beginning 2,821 436,506 439,327 771,927
Fund balances ending 401,402 401,402 830,029
Total
Other
Governmental
Funds
593,776
18,559
13,975
897,280
29,527
13,457
7,456
453
1,574,483
7,935
8,794
244,467
1,218,995
706,093
619,550
2,805,834
(1,231,351)
3,524,661
(1,456,909)
2,067,752
836,401
3,960,171
4,796,572
67
City of Sebastian, Florida
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
Local Option Gas Tax Special Revenue Fund
For the Year Ended September 30, 2009
REVENUES:
Actual Variance with
Amounts on Final Budget
Final a Budgetary Positive
Budget Basis (Negative)
Motor fuel taxes 650,000 593,776 (56,224)
Intergovernmental 19,047 18,559 (488)
Investment earnings 51,000 3,703 (47,297)
Total revenues 720,047 616,038 (104,009)
EXPENDITURES:
Current:
Transportation 239,016 244,467 (5,451)
Debt service:
Principal 243,986 243,995 (9)
Interest and fiscal charges 56,014 56,005 9
Total expenditures 539,016 544,467 (5,451)
Excess of revenues over expenditures 181,031 71,571 (109,460)
OTHER FINANCING (USES)
Transfers out (215,784) (215,784)
Total other financing (uses) (215,784) (215,784)
Net changes in fund balances (34,753) (144,213) (109,460)
Fund balances beginning 226,792 226,792
Fund balances ending 192,039 82,579 (109,460)
68
City of Sebastian, Florida
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
Recreation Impact Fee Special Revenue Fund
For the Year Ended September 30, 2009
Actual Variance with
Amounts on Final Budget
Final a Budgetary Positive
Budget Basis (Negative)
REVENUES:
Impact fees 100,000 13,975 (86,025)
Investment earnings 35,000 201 (34,799)
Total revenues 135,000 14,176 (120,824)
EXPENDITURES:
Current:
Culture and recreation
Total expenditures
Excess of revenues over expenditures 135,000 14,176 (120,824)
OTHER FINANCING (USES)
Transfers in 217,508 217,508
Transfers out (229,000) (177,724) 51,276
Total other fmancing (uses) (229,000) 39,784 268,784
Net changes in fund balances (94,000) 53,960 147,960
Fund balances beginning 1,033,393 1,033,393
Fund balances ending 939,393 1,087,353 147,960
69
City of Sebastian, Florida
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
Stormwater Utility Special Revenue Fund
For the Year Ended September 30, 2009
EXPENDITURES:
Current:
Physical environment
Total expenditures
70
Final
Budget
Actual Variance with
Amounts on Final Budget
a Budgetary Positive
Basis (Negative)
REVENUES:
Charges for services 850,000 807,971 (42,029)
Investment earnings 47,200 6,448 (40,752)
Total revenues 897,200 814,419 (82,781)
3,500 8,794 (5,294)
3,500 8,794 (5,294)
Excess of revenues over expenditures 893,700 805,625 (88,075)
OTHER FINANCING (USES)
Transfers out (1,606,360) (1,030,147) 576,213
Total other financing (uses) (1,606,360) (1,030,147) 576,213
Net changes in fund balances (712,660) (224,522) 488,138
Fund balances beginning 1,012,003 1,012,003
Fund balances ending 299,343 787,481 488,138
City of Sebastian, Florida
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
Law Enforcement Forfeiture Special Revenue Fund
For the Year Ended September 30, 2009
Actual Variance with
Amounts on Final Budget
Final a Budgetary Positive
Budget Basis (Negative)
REVENUES:
Fines 8,000 29,527 21,527
Investment earnings 1,000 267 (733)
Contributions 2,000 1,456 (544)
Other revenues 453 453
Total revenues 11,000 31,703 20,703
EXPENDITURES:
Current:
Public safety 15,500 30,050
Total expenditures 15,500 30,050
Excess of revenues over expenditures (4,500) 1,653
Fund balances beginning
Fund balances ending
71
51,947 51,947
(14,550)
(14,550)
6,153
47,447 53,600 6,153
City of Sebastian, Florida
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
Stormwater Utility Revenue Bonds 2003 Debt Service Fund
For the Year Ended September 30, 2009
OTHER FINANCING SOURCES
Transfers in
Total other financing sources
Fund balances beginning
Fund balances ending
72
Final
Budget
REVENUES:
Investment earnings 875 84 (791)
Total revenues 875 84 (791)
EXPENDITURES:
Debt service:
Principal 255,000 255,000
Interest and fiscal charges 186,010 188,185 (2,175)
Total expenditures 441,010 443,185 (2,175)
Deficiency of revenues under expenditures (440,135) (443,101) (2,966)
Net changes in fund balances 61,725
501,860 501,860
501,860 501,860
Actual Variance with
Amounts on Final Budget
a Budgetary Positive
Basis (Negative)
85,876 85,876
58,759 (2,966)
147,601 144,635 (2,966)
City of Sebastian, Florida
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
Discretionary Sales Surtax Revenue Bonds 2003 Debt Service Fund
For the Year Ended September 30, 2009
REVENUES:
Investment earnings
Total revenues
EXPENDITURES:
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Deficiency of revenues under expenditures
OTHER FINANCING SOURCES
Transfers in
Total other financing sources
Net changes in fund balances
Fund balances beginning
Fund balances ending
73
Final
Budget
1,974
1,974
720,000
314,931
1,034,931
(1,032,957)
2,251,783
2,251,783
338,906
1,557,732
Actual
Amounts on
a Budgetary
Basis
720,000
461,903
1,181,903
2,251,783
2,251,783
1,218,826 1,070,587
338,906
1,409,493
Variance with
Final Budget
Positive
(Negative)
707 (1,267)
707 (1,267)
(146,972)
(146,972)
(1,181,196) (148,239)
(148,239)
(148,239)
ASSETS
Cash and cash equivalents
Investments, at fair value
Total assets
LIABILITIES
Performance deposits held in escrow
Total liabilities
City of Sebastian, Florida
Statement of Changes in Assets and Liabilities
Agency Fund
For the Year Ended September 30, 2009
74
Balance Balance
October 1, September 30,
2008 Additions Deletions 2009
138,710 4,663 130,613 12,760
270,000 50,000 220,000
408,710 4,663 180,613 232,760
408,710 4,663 180,613 232,760
408,710 4,663 180,613 232,760
Governmental Funds capital assets:
City of Sebastian, Florida
Capital Assets Used in the Operation of Governmental Funds
Comparative Schedule By Source
September 30, 2009
FY 2008 FY 2009
Land 5,696,946 5,699,045
Buildings and structures 11,158,739 11,284,488
Improvement other than buildings 5,149,267 5,704,686
Machinery and equipment 7,390,752 7,784,213
Infrastructure 22,259,149 25,125,625
Capital projects 1,520,565 3,958,971
Total capital assets 53,175,418 59,557,028
Investment in Governmental Funds capital assets by sources:
Federal grants 2,138,342 3,062,044
State grants 907,755 907,755
County grants 713,359 713,359
General fund 11,605,512 11,552,446
Law enforcement trust fund 38,953 61,068
Recreational impact fee 688,730 1,179,319
Stormwater utility fee 387,153 387,153
Riverfront Redevelopment 754,056 1,097,069
Cemetery trust fund 230,472 237,479
Donations 3,145,174 3,159,873
Sales taxes 9,764,073 11,911,948
Motor fuel taxes 5,544,144 5,591,414
Revenue bond debt 15,737,130 15,737,130
Capital projects 1,520,565 3,958,971
Total investment in capital assets 53,175,418 59,557,028
75
City of Sebastian, Florida
Capital Assets Used in the Operation of Governmental Funds
Schedule by Function and Activity
September 30, 2009
Improvements Machinery
Other than and
Function and Activity Land Buildings Buildings Equipment Infrastructure Totals
General government:
Legislative 1,100 2,886 3,986
City manager 2,826 2,826
City clerk 136,974 136,974
City attorney 599 599
Finance 55,306 55,306
MIS 5,841 9,800 110,080 125,721
Facilities maintenance 133,430 15,665 69,200 218,295
Growth management 85,555 50,184 135,739
Non departmental 3,634,769 6,184,988 294,969 427,126 212,702 10,754,554
Subtotal 3,634,769 6,409,814 321,534 855,181 212,702 11,434,000
Public safety:
Special operations 176,393 176,393
Administration 9,560 3,347,151 89,320 282,963 3,728,994
School resource 71,469 71,469
Road patrol 2,392,531 2,392,531
Community policing 95,917 95,917
Code enforcement 34,302 34,302
Professional Stud. 19,025 19,025
Investigations 1,700 180,660 182,360
Support services 59,877 59,877
Communications 16,404 211,655 228,059
Building department 51,838 51,838
Subtotal 9,560 3,347,151 107,424 3,576,630 7,040,765
Transportation:
Engineering 2,216 2,216
Central garage 130,489 82,419 132,821 674 346,403
Roads and drainage 47,125 162,044 966,613 1,083,296 12,898,698 15,157,776
Subtotal 47,125 292,533 1,049,032 1,218,333 12,899,372 15,506,395
Physical Environment:
Stormwater 1,850 1,476,979 10,393,494 11,872,323
Cemetery 272,190 82,019 78,354 56,809 22,717 512,089
Subtotal 272,190 82,019 80,204 1,533,788 10,416,211 12,384,412
Culture/Recreation:
Parks and recreation 1,735,401 1,152,971 4,146,492 600,281 1,597,340 9,232,485
Subtotal 1,735,401 1,152,971 4,146,492 600,281 1,597,340 9,232,485
Total 5,699,045 11,284,488 5,704,686 7,784,213 25,125,625 55,598,057
Construction in progress 3,958,971
Total 59,557,028
76
Governmental Governmental
Funds Funds
Capital Assets Transfers Transfers Capital Assets
Function and Activity October 1, 2008 Additions Deletions In Out September 30, 2008
General government:
Legislative 3,986
City manager 2,826
City clerk 143,134
City attorney 599
Finance 54,236
MIS 105,356
Human resources 5,754
Facilities maintenance 215,085
Growth management 136,297
Non departmental 10,630,364
Subtotal 11,297,637
City of Sebastian, Florida
Capital Assets Used in the Operation of Governmental Funds
Schedule of Changes By Function and Activity
September 30, 2009
4,457
4,457
3,986
2,826
6,160 136,974
599
1,720 650 55,306
15,908 1 25,721
5,754
3,210 218,295
558 135,739
124,190 10,754,554
145,028 13,122 11,434,000
Public Saftey:
Special operations 176,393 176,393
Administration 3,717,964 21,992 15,305 4,343 3,728,994
School resource 71,469 71,469
Road patrol 2,050,330 415,398 73,197 2,392,531
Community policing 95,917 95,917
Code enforcement 46,632 12,330 34,302
Professional Stnd. 19,025 19,025
Investigations 159,563 22,797 182,360
Support services 72,310 12,433 59,877
Communications 222,854 7,345 2,140 228,059
Building department 55,996 3,600 558 51,838
Subtotal 6,688,453 467,532 106,675 4,343 12,888 7,040,765
Transportation:
Engineering 744,104 5,252 1,400 745,740 2,216
Central garage 344,058 2,944 599 346,403
Roads and drainage 13,085,015 1,494,427 586 578,920 15,157,776
Subtotal 14,173,177 1,502,623 1,986 578,920 746,339 15,506,395
Physical Environment:
Stormwater 10,380,292 1,429,482 62,549 11,872,323
Cemetery 506,270 7,007 1,188 512,089
Subtotal 10,886,562 1,436,489 62,549 1,188 12,384,412
Culture Recreation:
Parks and recreation 8,609,024 645,764 5,000 17,303 9,232,485
Subtotal 8,609,024 645,764 5,000 17,303 9,232,485
Total 51,654,853 4,056,865 113,661 790,840 790,840 55,598,057
Construction in progress 1,520,565 3,213,102 774,696 3,958,971
Total 53,175,418 7,269,967 888,357 790,840 790,840 59,557,028
77
CN
HOME OF PELICAN ISLAND
THIS PAGE INTENTIONALLY LEFT BLANK
78
Statistical Section
This part of the City of Sebastian, Florida's comprehensive annual financial report
presents detailed information as a context for understanding what the information in the
financial statements, note disclosures, and required supplementary information says
about the city's overall financial health.
Contents Page(s)
Financial Trends
These schedules contain trend information to help the reader understand how
the city's financial performance and well -being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the city's most
significant local revenue source, the property tax, and the municipal sales tax.
Debt Capacity
These schedules present information to help the reader assess the affordability
of the city's current levels of outstanding debt and the city's ability to issue
additional debt in the future.
Economic and Demographic Information
These schedules offer economic and demographic indicators to help the reader
understand the environment within which the city's financial activities take
place.
Operating Information
These schedules contain service and infrastructure data to help the reader
understand how the information in the city's financial report relates to the
services the city provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year. The city implemented
GASB Statement 34 in 2001; schedules presenting government -wide information include
information beginning in that year.
79
80 -91
92 -97
98 -103
104 -106
107 -109
City of Sebastian, Florida
Net Assets By Component
Last Nine Fiscal Years
(accrual basis of accounting)
80
2009
2008 2007
Governmental Activities
Invested in Capital Assets, Net of Related Debt 26,744,896 24,133,550 21,469,456
Restricted 8,197,018 9,215,801 9,419,129
Unrestricted 4,502,440 5,035,184 5,249,998
Total Governmental Activities Net Assets 39,444,354 38,384,535 36,138,583
Business -Type Activities
Invested in Capital Assets, Net of Related Debt 10,725,676 9,111,251 8,895,501
Restricted 98,320 570,149 570,890
Unrestricted 86,517 753,076 1,303,886
Total Business Type Activities Net Assets 10,910,513 10,434,476 10,770,277
Primary government
Invested in Capital Assets, Net of Related Debt 37,470,572 33,244,801 30,364,957
Restricted 8,295,338 9,785,950 9,990,019
Unrestricted 4,588,957 5,788,260 6,553,884
Total Primary Government Net Assets 50,354,867 48,819,011 46,908,860
(I) The large increases in unrestricted net assets from 2003 to 2004 and from 2004 to 2005 are mainly due to increase
in State revenue sharing. sales and use taxes, and tax revenues
(2) The large increase in unrestricted net assets from 2005 to 2006 is mainly due to increase in tax revenues, franchise
fees, and interest earnings.
2006 2005 2004 2003 2002 2001
17,579,683
5,068,583
11,293,877 (2)
17,103,399
5,395,879
9,081,345
16,412,401
4,059,674
7,171,123
81
16,339,222
3,235,266
5,461,224
14,242,832
3,289,670
5,865,388
12,778,007
2,270,654
5,417,630
33,942,143 31,580,623 27,643,198 25,035,712 23,397,890 20,466,291
8,798,612 7,459,945 4,264,961 1,545,867 363,827 150,722
560,581 574,105 506,006 505,435 458,014 640,973
1,896,539 738,519 1,712,657 1,471,457 1,120,224 985,863
11,255,732 8,772,569 6,483,624 3,522,759 1,942,065 1,777,558
26,378,295 24,563,344 20,677,362 17,885,089 14,606,659 12,928,729
5,629,164 5,969,984 4,565,680 3,740,701 3,747,684 2,911,627
13,190,416 9,819,864 8,883,780 6,932,681 6,985,612 6,403,493
45,197,875 40,353,192 34,126,822 28,558,471 25,339,955 22,243,849
Business -Type Activities:
Charges for Services:
Golf Course
Airport
Building (1)
Operating Grants and Contributions
Capital Grants and Contributions
Total Business -Type Activities Program Revenues
Total Primary Government Program Revenues
Expenses
Governmental Activities:
General Government
Public Safety
Physical Environment
Transportation
Economic Environment
Cultural/Recreation
Interest and Fiscal Charges
Total Governmental Activities Expenses
Business -Type Activities:
Golf Course
Airport
Building (1)
Total Business -Type Activities Expenses
Total Primary Government Expenses
City of Sebastian, Florida
Changes in Net Assets
Last Nine Fiscal Years
(accrual basis of accounting)
82
2009
Program Revenues
Governmental Activities:
Charges for Services:
General Government 220,073
Public Safety 95,606
Physical Environment 908,829
Economic Environment
Cultural/Recreation
Operating Grants and Contributions
Capital Grants and Contributions
Total Governmental Activities Program Revenues
66,540
228,002
1,865,174
3,384,224
1,406,956
438,485
358,947
2008
2007
353,836 422,897
85,009 92,853
903,285 891,021
83,378
786,016
835,607
3,047,131
85,945
192,676
1,014,481
2,699,873
1,438,233 1,652,288
523,989 344,813
347,189 408,875
494,098 500,428
1,356,914
3,561,302
6,945,526 5,850,640 5,606,277
3,169,851
5,420,585
1,347,771
3,437,724
167,470
1,073,249
730,100
15,346,750
1,477,299
1,079,869
533,641
3,090,809
18,437,559
2,803,509 2,906,404
3,375,178
5,226,512
1,805,755
2,111,360
113,101
1,420,734
634,891
14,687,531
1,488,472
1,099,653
605,422
3,193,547
17,881,078
(1) The building operation was reclassified from being part of the general fund operation to an enterprise fund
operation at the beginning of fiscal year 2006.
3,083,609
5,377,107
1,695,066
2,276,497
605,510
1,237,398
667,950
14,943,137
1,533,900
1,046,994
905,452
3,486,346
18,429,483
2006 2005 2004
533,482
140,545
887,819
72,472
407,898
1,301,438
3,343,654
1,580,407
375,768
1,220,823
6,998
1,056,562
4,240,558
7,584,212
3,129,723
4,191,295
2,193,589
2,173,071
98,661
1,208,288
706,303
13,700,930
1,558,338
801,967
936,793
3,297,098
370,609
1,356,385
828,907
56,199
2,802,511
1,781,954
7,196,565
376,327
1,660,032
850,887
48,590
1,144,528
1,353,959
5,434,323
1,381,817 1,648,308
434,818 201,890
13,582 67,576
2,289,986 2,451,212
4,120,203 4,368,986
11,316,768
3,262,276
4,816,614
1,283,889
4,034,900
32,128
1,260,395
740,372
15,430,574
1,464,532
519,235
9,803,309
1,527,051
350,949
2003 2002
247,774
824,821
799,637
46,736
920,829
640,894
3,480,691
1,377,245
168,451
1,149,437
2,695,133
2,414,865 1,620,616
4,502,109 3,391,831
1,279,257 1,920,200
3,288,532 2,401,037
86,041 166,024
823,974 747,910
722,007 312,367
13,116,785 10,559,985
1,363,359
315,941
2001
172,135 183,502
625,924 554,350
785,683
24,869 18,753
73,013 35,050
958,229 902,001
872,490 581,941
3,512,343 2,275,597
1,365,027 1,088,104
179,373 193,649
(1)
51,087 123,673
214,175 299,334
1,809,662 1,704,760
6,175,824 5,322,005 3,980,357
2,010,288
2,945,701
508,616
2,258,181
223,207
881,260
168,749
8,996,002
1,393,551
283,726
1,676,383
2,526,514
452,116
1,630,098
241,692
768,802
160,954
7,456,559
1,341,001
313,877
(1)
1,983,767 1,878,000 1,679,300 1,677,277 1,654,878
16,998,028 17,414,341 14,994,785 12,239,285 10,673,279 9,111,437
City of Sebastian, Florida
Changes in Net Assets (continued)
Last Nine Fiscal Years
(accrual basis of accounting)
2009
2008 2007
Net (Expense)/Revenue
Governmental Activities (11,962,526) (11,640,400) $(12,243,264)
Business -Type Activities 470,493 (390,038) (579,942)
Total Primary Government Net Expense (11,492,033) (12,030,438) $(12,823,206)
General Revenues and Other Changes in Net Assets
Governmental Activities:
Property Taxes, Levied for General Purposes 4,801,924 5,149,047 5,089,841
Sales and Use Taxes 4,670,106 4,753,718 4,776,691
Franchise Fees 1,327,253 1,199,762 1,106,698
State Shared Revenues 1,821,347 1,989,606 2,083,523
Interest Earnings 261,203 634,919 1,147,931
Miscellaneous 140,512 159,300 192,300
Transfers 42,720
Total Governmental Activities 13,022,345 13,886,352 14,439,704
Business -Type Activities:
Interest Earnings 5,544 54,237 137,207
Miscellaneous
Transfers (42,720)
Total Business -Type Activities 5,544 54,237 94,487
Total Primary Government 13,027,889 13,940,589 14,534,191
Change in Net Assets
Governmental Activities
Business -Type Activities
1,059,819 2,245,952 2,196,440
476,037 (335,801) (485,455)
Total Primary Government Change in Net Assets 1,535,856 1,910,151 1,710,985
(2) The large increase in transfers from 2005 to 2006 is mainly due to the one time transfer of
building reserve to building fund due to the reclassification of fund type for the building operation.
2006 2005 2004 2003 2002 2001
$(10,357,276) (8,234,009) (7,682,462) (7,079,294) (5,483,659) (5,180,962)
943,460 2,136,436 2,490,986 1,015,833 132,385 49,882
(9,413,816) (6,097,573) (5,191,476) (6,063,461) (5,351,274) (5,131,080)
4,645,050 4,017,555 3,420,971 2,944,456 2,615,939 2,557,333
4,907,906 4,718,691 4,035,545 3,705,922 2,844,825 3,013,293
1,253,749 886,390 770,600 756,194 766,901 753,024
2,242,292 2,138,020 1,721,956 1,523,524 2,068,753 1,336,046
827,224 398,518 398,158 241,358 118,840 236,307
256,780 118,760 388,562 79,662
(1,414,205) (106,500) (445,844) (534,000)
12,718,796 12,171,434 10,289,948 8,717,116 8,415,258 7,896,003
125,498
1,414,205 (2)
1,539,703
45,709 23,774 21,789 32,122 99,521
300 261 9,072
106,500 445,844 534,000
152,509 469,879 564,861 32,122 99,521
14,258,499 12,323,943 10,759,827 9,281,977 8,447,380 7,995,524
2,361,520 3,937,425 2,607,486 1,637,822 2,931,599 2,715,041
2,483,163 2,288,945 2,960,865 1,580,694 164,507 149,403
4,844,683 6,226,370 5,568,351 3,218,516 3,096,106 2,864,444
Total General Fund
City of Sebastian, Florida
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2009 2008 2007 2006 2005
General Fund
Reserved 650,000 739,873 947,533 1,815,187 2,848,726
Unreserved 5,118,114 5,568,309 5,443,254 4,663,885 3,254,741
5,768,114 6,308,182 6,390,787 6,479,072 6,103,467
All Other Governmental Funds
Reserved 5,771,690 (1) 9,809,650 8,299,903 10,058,183 (2) 828,819
Unreserved, Reported in:
Special Revenue funds 3,615,728 3,408,537 5,321,148 5,381,276 4,735,396
Capital Projects funds (3) 8,406,953
Total All Other Governmental Funds 9,387,418 13,218,187 13,621,051 15,439,459 13,971,168
Total Governmental Funds $15,155,532 19,526,369 20,011,838 21,918,531 20,074,635
(1) The significant reduction in reserved 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.
(2) The significant change in reserved fund balance from 2005 to 2006 is due to the reclassification of unreserved
reported in capital projects funds to reserved.
(3) The significant change in unreserved reported in capital projects funds from 2005 to 2006 is due to the reclassification of
unreserved reported in capital projects funds to reserved.
(4) The large increase in unreserved fund balance reported in capital projects funds from 2002 to 2003 is due to the issuance
of City's Infrastructure Sales Surtax Revenue Bonds, Series 2003.
86
2004 2003 2002 2001 2000
2,693,710 1,402,398 232,088 121,256 64,341
2,421,182 2,479,452 3,690,659 3,406,083 2,786,252
5,114,892 3,881,850 3,922,747 3,527,339 2,850,593
4,208,170 1,596,981 1,503,172 1,306,269 2,021,740
3,355,229 2,211,585 1,808,288 548,174 456,461
6,795,371 9,993,933 (4) 2,384,557 2,609,201 1,562,299
14,358,770 13,802,499 5,696,017 4,463,644 4,040,500
19,473,662 17,684,349 9,618,764 7,990,983 6,891,093
87
Revenues
Property and Other Local Taxes
Franchise Fees
Charges for Services
Licenses and Permits
Fines
Intergovernmental
Impact Fees
Special Assessments
Investment Earnings
Miscellaneous
Total Revenues
Expenditures
Current:
General Government
Public Safety
Physical Environment
Transportation
Economic Environment
Cultural and Recreation
Debt service:
Principal Retirement
Interest and Fiscal Charges
Capital Outlay
Total Expenditures
Excess of Revenues Over (Under) Expenditures
Other Financing Sources (Uses)
Debt Proceeds
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Debt Service as a Percentage of Noncapital Expenditures
City of Sebastian, Florida
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
88
2009
10,065,806
1,327,253
1,186,161
29,151
88,938
3,270,854
13,975
3,849
250,914
176,430
16,413,331
2008
2,976,896 3,087,789
4,926,714 4,677,618
1,448,067 1,368,593
1,696,254 1,545,045
167,470 113,101
1,148,408 1,079,379
1,218,995 1,326,182
706,093 611,554
6,495,271 3,634,910
20,784,168 17,444,171
(4,370,837) (485,469)
5,196,376 5,679,896
(5,196,376) (5,679,896)
13.5%
2007
10,504,155 10,554,617
1,199,762 1,106,698
1,209,617 1,271,102
163,471 186,875
65,246 71,314
2,674,761 2,463,628
32,825 56,875
647,312 1,062,043
461,553 244,629
16,958,702 17,017,781
2,999,652
4,700,447
1,301,719
1,733,697
80,279
975,087
1,284,418
643,305
5,242,590
18,961,194
(1,943,413)
5,158,296
(5,115,576)
42,720
(4,370,837) (485,469) (1,900,693)
14.0% 14.1%
2006 2005 2004 2003 2002 2001 2000
10,269,451
1,253,749
517,605
244,370
77,776
2,852,293
337,675
819,286
827,224
294,695
17,494,124
9,483,664
886,390
936,530
1,587,675
95,699
5,561,695
385,775
11,023
398,518
144,057
2,494,863 2,974,736
3,813,908 4,349,639
1,850,642 910,794
1,672,983 3,616,076
98,661 32,128
926,846 995,406
1,248,378 1,218,023
678,682 711,736
1,451,060 3,975,015
14,236,023 18,783,553
3,258,101 707,473
3,785,981 3,745,265
(5,200,186) (3,851,765)
(1,414,205) (106,500)
1,843,896 600,973
8,179,344 7,325,932 6,228,107 6,223,280 6,273,070
770,600 756,194 766,901 753,024
962,677 921,119 1,123,670 300,046 159,701
1,867,920 878,097 578,695 487,618 475,345
118,918 119,752 127,027 148,676 140,672
3,115,520 1,785,237 2,841,315 1,968,416 2,318,091
557,700 395,850 255,775
28,424 22,560 31,756 28,528 128,154
398,158 241,358 206,567 417,707 689,395
378,268 91,078 126,823 196,311 246,774
19,491,026 16,377,529 12,537,177 12,286,636 10,523,606 10,431,202
15.1% 13.0%
2,231,532
3,950,228
1,125,727
2,863,397
86,041
747,131
985,974
887,564
9,021,558
21,899,152
(5,521,623)
7,756,780
2,745,754
(3,191,598)
7,310,936
1,789,313
1,977,033
3,427,711
1,247,452
1,610,761
166,024
629,835
361,024
158,043
3,859,709
13,437,592
(900,415)
9,500,000
2,992,908
(3,526,908)
8,966,000
8,065,585
14.5% 5.4% 6.2% 5.4% 5.5%
89
2,230,870 1,647,858 1,946,702
2,588,526 2,482,393 2,129,662
508,616 452,116 345,844
1,427,992 1,084,401 1,228,234
327,911 273,927 617
732,729 612,038 555,584
344,553 222,954 212,860
174,864 152,093 151,536
2,322,794 3,402,365 4,713,604
10,658,855 10,330,145 11,284,643
1,627,781 193,461 (853,441)
900,000
2,009,173 2,130,744 2,134,510
(2,009,173) (2,130,744) (2,134,510)
900,000
1,627,781 1,093,461 (853,441)
City of Sebastian, Florida
Program Revenues by Function/Program
Last Nine Fiscal Years
(accrual basis of accounting)
2009 2008 2007
Function/Program
Governmental Activities:
General Government 226,003 377,305 450,267
Public Safety 299,119 515,997 249,756
Physical Environment 1,408,829 1,256,277 891,021
Transportation 612,335 619,949 721,103
Economic Environment 6,000
Cultural/Recreation 831,938 277,603 387,726
Total Governmental Activities 3,384,224 3,047,131 2,699,873
Business -type activities:
Golf Course 1,406,955 1,438,233 1,652,288
Airport 1,795,399 (2) 1,018,087 845,241
Building (1) 358,948 347,189 408,875
Total Business Type Activities 3,561,302 2,803,509 2,906,404
Total Primary Government 6,945,526 5,850,640 5,606,277
(1) The building operation was reclassified from being part of the general fund operation to an
enterprise fund beginning of fiscal year 2006.
(2) The significant increase in business -type activities for the airport from 2008 to 2009 is
mainly due to capital grant funding from the Florida Department of Transportation and
the Federal Aviation Administration
90
2006
579,591
306,702
890,092
900,365
30,059
636,845
3,343,654
1,587,405
1,432,330
1,220,823
4,240,558
2005
587,527
1,537,557
898,821
3,392,883
779,777
7,196,565
1,395,399
2,724,804
4,120,203
2004
392,471
1,850,710
914,318
1,670,534
606,290
5,434,323
1,715,884
2,653,102
4,368,986
91
2003
1,095,902
929,952
1,136,507
1,580,076
663,459
5,405,896
1,377,245
1,317,888
2,695,133
2002 2001
172,135
785,373
785,683
3,038,913
24,869
566,959
5,373,932
1,365,517
444,145
1,809,662
226,786
633,230
779,837
2,285,809
18,753
168,335
4,112,750
1,088,104
616,656
1,704,760
7,584,212 11,316,768 9,803,309 8,101,029 7,183,594 5,817,510
City of Sebastian, Florida
Tax Revenues by Source, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year Property Taxes Public Utility Sales Tax Motor Fuel Total
2009 (1) 4,801,924 2,341,458 2,328,648 593,776 10,065,806
2008 (2) 5,149,047 2,250,781 2,502,937 601,390 10,504,155
2007 (3) 5,089,841 2,216,381 2,560,310 688,085 10,554,617
2006 (4) 4,645,050 2,183,164 2,724,742 716,495 10,269,451
2005 4,017,555 2,005,124 2,713,567 747,418 9,483,664
2004 3,420,971 1,854,632 2,180,913 722,828 8,179,344
2003 2,944,456 1,780,717 1,925,205 675,554 7,325,932
2002 (5) 2,717,564 983,236 1,861,589 665,718 6,228,107
2001 2,608,989 1,151,685 1,861,608 600,998 6,223,280
2000 (6) 2,323,566 1,044,595 1,704,749 549,800 5,622,710
(1) Fiscal Year 2009 property tax revenue reflects a change in the property tax millage rate from 2.9917 to 3.3456.
(2) Fiscal Year 2008 property tax revenue reflects a change in the property tax millage rate from 3.0519 to 2.9917.
(3) Fiscal Year 2007 property tax revenue reflects a change in the property tax millage rate from 3.9325 to 3.0519.
(4) Fiscal Year 2006 property tax revenue reflects a change in the property tax millage rate from 4.5904 to 3.9325.
(5) Fiscal Year 2002 property tax revenue reflects a change in the property tax millage rate from 5.0000 to 4.5904.
(6) Fiscal Year 2000 property tax revenue reflects a change in the property tax millage rate from 6.5000 to 5.0000.
Millage Rate represents the dollar of tax per one thousand dollars of taxable valuation.
92
City of Sebastian Indian River County School Board
Debt Total Total Debt Total
Fiscal Operating Service City County Operating Service School
Year Millage Millage Millage Millage Millage Millage Millage Other
2009 3.3456 3.3456 6.28610 6.76000 0.28000 7.04000 1.11204
2008 2.9917 2.9917 5.14850 7.26800 0.27000 7.53800 1.38160
2007 3.0519 3.0519 5.36610 7.16300 0.28000 7.44300 1.47940
2006 3.9325 3.9325 5.69040 7.88000 0.36000 8.24000 1.60850
2005 4.5904 4.5904 7.35050 8.01900 0.48000 8.49900 1.43029
2004 4.5904 4.5904 7.93960 8.17900 0.53100 8.71000 1.69278
2003 4.5904 4.5904 8.03020 8.10200 0.63000 8.73200 1.43875
2002 4.5904 4.5904 8.08410 8.40200 0.68000 9.08200 1.14845
2001 5.0000 5.0000 8.24860 8.67700 0.88000 9.55700 1.62899
2000 5.0000 5.0000 8.24360 8.61400 1.00000 9.61400 1.52091
(1) Millage includes General Fund, M.S.T.U.s, Emergency Services District and Land Bonds.
(2) All Special Taxing Districts.
Source: Indian River County Property Appraiser's Office
City of Sebastian, Florida
Property Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
93
Tax
Year
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
Assessed
Value (l)
1,650,311,449
1,933,934,630
2,054,408,055
2,124,615,672
1,526,923,406
1,157,275,164
946,293,950
829,224,615
754,577,150
656,619,860
Real Property
Estimated
Actual Value
2,062,889,311
2,417,418,288
2,568,010,069
2,655,769,590
1,908,654,258
1,446,593,955
1,182,867,438
1,036,530,769
943,221,438
820,774,825
Source: Indian River County Property Appraiser
City of Sebastian, Florida
Assessed Valuation and Estimated Taxable Property Values
Last Ten Fiscal Years
Assessed
Value
56,920,223
62,476,508
64,899,942
55,913,696
51,827,624
51,330,277
48,613,628
45,355,170
45,195,579
42,216,162
Personal Property
Estimated
Actual Value
56,920,223
62,476,508
64,899,942
55,913,696
51,827,624
51,330,277
48,613,628
45,355,170
45,195,579
41,533,985
(1) The assessed value of Real Property is equivalent to approximately 80 percent of estimated
actual value. The City adopts a millage each year and applies the same rate to all taxable property.
Exemptions
Real
Property
479,222,945
506,441,634
334,302,515
322,318,753
271,466,364
228,262,825
217,554,663
205,977,066
198,445,669
190,327,263
Total
Taxable
Value
1,148,064,078
1,318,172,635
2,119,307,997
2,180,529,368
1,578,751,030
1,208,605,441
994,907,578
874,579,785
799,772,729
698,836,022
Total
Estimated
Actual Value
1,423,351,926
1,634,831,349
2,632,910,011
2,711,683,286
1,960,481,882
1,497,924,232
1,231,481,066
1,081,885,939
988,417,017
862,308,810
95
Taxpayer
Florida Power Light (Utility Electric)
Wal -Mart Stores Inc. (Retail)
IPF Sebastian LLC (Retail)
Bellsouth Communications (Communication)
BW US 1 Inc. (Commerical)
Park Place Community LLC (Rent Retail)
KB Homes Treasure Coast LLC (Construction)
512 Commerce Center LLC (Commercial)
Chance Holdings LLC (Development)
Pelican Isles Limited Partnership (Rental
Lynch, Robert N. (Bishop)
Grace's Landing Ltd
Falcon Cable Media
Winn Dixie Stores Inc.
Sebastian Center Ltd
Ringhaver Equipment
Total Assessed Valuation $1,319,602,616
(1) 1999 information not available
Source: Indian River County Property Appraiser's Office
City of Sebastian, Florida
Principal Taxpayers
Year 2009 and Year 1998
83,290,304
96
2009
Real Percentage
Property of Total
Assessed Assessed
Valuation Rank Valuation
15,809,386 1 1.20%
13,404,610 2 1.02%
9,743,746 3 0.74%
7,153,062 4 0.54%
6,946,560 5 0.53%
6,896,210 6 0.52%
6,600,600 7 0.50%
6,177,200 8 0.47%
5,492,320 9 0.42%
5,066,610 10 0.38%
1998 (1)
Real Percentage
Property of Total
Assessed Assessed
Valuation Rank Valuation
6,448,890 3 1.02%
7,843,080 2 1.24%
7,930,440 1 1.26%
2,737,650 5 0.43%
3,665,790 4 0.58%
2,111,580 6 0.34%
1,618,367 7 0.26%
1,586,073 8 0.25%
1,316,420 9 0.21%
780,155 10 0.12%
6.32% 36,038,445 5.71%
$630,218,290
City of Sebastian, Florida
Property Tax Levies And Collections
Last Ten Fiscal Years
Percent of Percent of
Total Current Current Tax Delinquent Total Total Tax
Tax Tax Collections Tax Tax Collections
Year Levy Collections To Tax Levy Collections Collections To Tax Levy
2009 4,441,535 4,225,106 95 51,694 4,276,800 96
2008 4,919,994 4,634,338 94 2,906 4,637,244 94
2007 4,747,938 4,537,100 96 9,429 4,546,529 96
2006 4,426,281 4,300,217 97 39 4,300,256 97
2005 3,888,488 3,723,912 96 1,712 3,725,624 96
2004 3,216,940 3,130,521 97 34,247 3,164,768 98
2003 2,862,650 2,725,515 95 26,908 2,752,423 96
2002 2,635,277 2,489,854 94 36,421 2,526,275 96
2001 2,542,544 2,455,930 97 51,690 2,507,620 99
2000 2,422,756 2,283,898 94 35,050 2,318,948 96
Source: Indian River County Property Appraiser and Tax Collector
97
Business -type
Governmental Activities Activities
Water Line Roadway Infrastructure Heavy Stormwater Golf Course Total Percent of
Assessment Improvement Sales Tax Equipment Utility Revenue Revenue Primary Personal Per
Year Bonds Notes Bonds Lease Bonds Bonds Government Income Capita
2009 $1,089,203 7,725,000 4,315,000 300,000 13,429,203 (2) 591
2008 1,333,197 8,445,000 4,570,000 590,000 14,938,197 (2) 652
2007 1,566,839 9,145,000 147,538 4,815,000 870,000 16,544,377 0.21% 738
2006 1,790,544 9,825,000 288,251 5,055,000 1,140,000 18,098,795 0.25% 835
2005 2,004,718 10,490,000 422,455 5,290,000 1,395,000 19,602,173 0.31% 978
2004 2,209,745 11,140,000 550,452 5,525,000 1,885,000 21,310,197 0.42% 1,100
2003 77,615 2,406,028 9,500,000 672,528 2,115,000 14,771,171 0.31% 802
2002 134,299 2,593,939 788,957 2,335,000 5,852,195 0.13% 341
2001 187,901 2,773,847 2,435,000 (1) 5,396,748 0.12% 324
2000 238,589 2,946,113 1,500,000 4,684,702 0.11% 290
(1) Golf Course Revenue Bonds, Series 1996 was refunded in 2001.
(2) Information not available yet.
City of Sebastian, Florida
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
98
City of Sebastian, Florida
Computation of Legal Debt Margin
September 30, 2009
Assessed Valuation
Assessed taxable property value 668,841,133
Add back: exempt property 479,222,945
Total assessed value of taxable property 1,148,064,078
Legal debt margin:
Debt limitation 5 percent of total assessed real property value (1) 57,403,204
Debt applicable to limitation
Total bonded debt 12,040,000
Less: revenue bonds (12,040,000)
Total applicable to limitation
Legal debt margin
(1) City adopted fmancial policies state the City will limit its total outstanding general obligation debt to
five percent of the assessed valuation of taxable property.
City of Sebastian, Florida
Direct and Overlapping Governmental Activities Debt
General Obligation Bonds
September 30, 2009
The City of Sebastian has no overlapping general obligation bonded debt.
99
57,403,204
City of Sebastian, Florida
Ratios of General Bonded Debt Outstanding and Legal Debt Margin
Last Ten Fiscal Years
2009 2008 2007 2006
Debt Limit (1) 55,057,570 63,331,743 102,720,403 76,346,170
Total net debt applicable to limit 1,078,787 1,333,197 1,714,377 2,078,796
Legal debt margin 53,978,783 61,998,546 101,006,026 74,267,374
Total net debt applicable to the limit
as a percentage of debt limit 1.96% 2.11% 1.67% 2.72%
(1) Under the City's adopted financial policies, the City's outstanding general obligation debt should not exceed 5% of
the assessed valuation of real property. The percentage was dropped from 10% to 5% in fiscal year 2003.
100
2005 2004 2003 2002 2001 2000
76,346,170 57,863,758 47,314,698 82,922,462 75,457,715 65,661,986
2,427,174 2,760,196 3,078,556 3,382,896 3,673,847 2,946,113
73,918,996 55,103,562 44,236,142 79,539,566 71,783,868 62,715,873
3.18% 4.77% 6.51% 4.08% 4.87% 4.49%
101
Fiscal Gross
Year Revenues
2009 1,408,535
2008 1,455,749
2007 1,701,171
2006 1,628,015
2005 1,395,436
2004 1,497,053
2003 1,400,154
2002 1,386,424
2001 1,165,091
2000 1,450,487
Recreational Facilities
(5)
Less:
Operating
Expenses (2)
1,178,144
1,174,169
1,218,382
1,165,411
1,023,002
1,108,770
968,052
1,020,640
1,043,741
947,145
(5)
City of Sebastian, Florida
Pledged- Revenue Coverage
Last Ten Fiscal Years
Improvement
Net
Available
Revenue
230,391
281,580
482,789
462,604
372,434
388,283
432,102
365,784
121,350
503,342
102
and Refunding
Principal
230,391
270,000
255,000
250,000
240,000
230,000
220,000
100,000
110,000
Revenue Bonds, Series 2001
Debt Service
Interest Total
30,090 260,481
41,090 311,090
51,590 306,590
61,690 311,690
71,490 311,490
80,890 310,890
89,890 309,890
104,481 204,481
96,980 206,980
Note: Detail regarding the City's outstanding debt can be found in the notes to the fmancial statements.
(1) Total revenues including charges for services, rents, and interest.
(2) Total direct operating expenses excludes depreciation, amortization, annual Airport lease payment,
and one time hurricane repair and upgrade.
(3) Golf Course Bond, Series 1985 refunded in 1992 with Series 1992.
(4) Required coverage is 1.0.
(5) Golf Course closed for four months for renovations.
Golf Course Bond, Series 1992 refunded with Recreational Facilities Improvement and Refunding Revenue
Bonds, Series 2001.
(7) Required coverage is 1.25.
(8) Total revenues consist of stormwater utility fees and interest.
(9) Required coverage is 1.35.
Covers e
0.88
0.91
1.57
1.48
1.20
1.25
1.39
1.79
2.43
Stormwater Utility Revenue Bonds, Series 2003
Gross Debt Service
Revenues Principal Interest Total Coverage
814,419 255,000 185,135 440,135 1.85
856,568 245,000 191,873 436,873 1.96
932,183 240,000 197,273 437,273 2.13
908,576 235,000 201,973 436,973 2.08
792,886 235,000 206,673 441,673 1.80
779,724 105,000 104,386 209,386 3.72
City of Sebastian, Florida
Demographic and Economic Statistics
Last Ten Years
Total Per Capita Median
Personal Personal Household
Year Population Income (1) Income (1) Income (1)
2009 22,722 (5) $230,391
2008 22,924 (5) (5) (5)
2007 22,426 7,810,408,000 59,419 47,563
2006 21,666 7,217,159,000 55,817 45,034
2005 20,048 6,386,893,000 50,369 44,450
2004 19,365 5,071,395,000 40,677 41,522
2003 18,425 4,831,037,000 40,162 40,291
2002 17,167 4,680,414,000 39,683 39,615
2001 16,667 4,552,238,000 39,470 39,359
2000 16,181 4,207,683,000 37,110 40,063
Median
Age (2)
(5)
(5)
(5)
(5)
(5)
(5)
(5)
(5)
(5)
49.2
Sources:
(1) Florida Research Economic Database. Information available for Indian River County only.
(2) U.S. Census Bureau
(3) Indian River County School Board
(4) Indian River County Property Appraiser
(5) Information not available yet
(6) The school population appears to have declined as result of loss of job opportunities. Our community had
a lot of construction jobs, which were drastically reduced as a result of the economy.
School enrollment consists of Sebastian River High School, Sebastian River Middle School, Liberty Magnet,
Treasure Coast Elementary, Pelican Island Elemtnary, Sebastian Elementary and Sebastian Charter Junior High School
104
Educational
Attainment:
Bachelor's Degree School Unemployment Total Assessed
or higher (2) Enrollment (3) Rate (1) Property Value (4)
(5) 3,751 (6) 14.1 1,148,064,078
(5) 4,710 (6) 9.7 1,869,826,330
(5) 5,117 6 2,119,307,997
(5) 5,604 4.1 2,180,529,368
(5) 5,258 4.0 1,578,751,030
(5) 4,917 7.6 1,208,605,441
(5) 4,340 7.5 994,907,578
(5) 4,309 7.8 874,579,785
(5) 1,371 7.4 799,772,729
23.1 1,342 6.5 698,836,022
Employer
Total County Employees 62,237
Employer
City of Sebastian, Florida
Principal Employers
Year 2009 and 1999
2009
1999
Total County Employees 43,592
Source: Indian River County Community Development Report
Principal employers information available for Indian River County only.
106
Percentage
Number of of Total County
Employees Employment
School District of Indian River County 2,295 3.69
Indian River County 1,706 2.74
Indian River Medical Center 1,671 2.68
Publix Supermarkets 1,104 1.77
The New Piper Aircraft 1,063 1.71
City of Vero Beach 561 0.90
John's Island 475 0.76
Indian River Estates 442 0.71
Wal -Mart 404 0.65
Sebastian River Medical Center 380 0.61
Visiting Nurse Association 348 0.56
CVS Warehouse/Distribution 325 0.52
Grand Harbor Management 312 0.50
Disney'Vero Beach Resort 301 0.48
Dodgertown Complex 293 0.47
Total 11,680 18.77
Percentage
Number of of Total County
Employees Employment
The New Piper Aircraft 1249 2.87
Publix Supermarket 792 1.82
Wal -Mart 774 1.78
Sun Ag. Inc. 550 1.26
Winn Dixie Supermarkets 520 1.19
Hale Indian River Groves 505 1.16
Gracewood Fruit Packing 500 1.15
Dodgertown Complex 438 1.00
John's Island 415 0.95
Graves Brothers 400 0.92
Total 6,143 14.09
Function /program
2009 2008 2007 2006 2005 2004 2003 2002 2001 2000
Totals:
City of Sebastian, Florida
Full -Time Equivalent City Government Employees by Function/Program
Last Ten Fiscal Years
General Government:
City Council 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5
City Manager 2.5 2.5 2.0 2.0 5.0 4.0 4.0 4.0 4.0 3.0
City Clerk 3.0 3.0 4.0 4.5 4.0 4.0 4.0 5.0 5.0 5.0
City Attorney 2.0 2.0 2.0 2.0 2.0 1.0 1.0 1.0 1.0 1.0
Finance 5.0 5.0 5.0 6.0 5.0 5.0 5.0 6.0 6.0 5.0
Mgmt Information Svcs 3.0 3.0 3.0 3.0 2.0 2.0 2.0 0.0 0.0 0.0
Human Resources 2.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0
Facilities Maintenance 2.0 2.0 2.0 2.0 2.0 0.0 4.0 4.0 4.0 4.0
Growth Management 5.0 5.0 5.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0
Public Safety:
Police Department 59.0 60.0 57.0 58.0 (2) 59.0 56.5 54.5 53.0 52.5 50.0
Building Department 5.0 6.0 11.0 11.0 9.0 8.0 7.0 7.0 6.0 6.0
Code Enforcement 2.5 2.5 3.0 3.0 (2) 0.0 0.0 0.0 0.0 0.0 0.0
Transportation:
Roads Drainage 10.0 10.0 11.5 12.5 12.5 14.5 11.5 (1) 23.5 26.5 27.5
Central Garage 3.5 2.5 3.5 3.5 3.0 3.0 3.0 3.0 3.0 3.0
Airport 3.0 3.0 3.0 3.5 3.5 2.5 2.5 1.5 1.0 0.5
Physical Environment:
Engineering 7.0 7.0 9.0 8.0 8.0 8.0 7.5 8.0 6.5 6.5
Stormwater Utility 11.0 13.0 13.0 13.0 13.0 12.0 12.0 (1) 1.0 0.0 0.0
Cultural/Recreation:
Parks Recreation 23.5 23.5 23.5 24.5 23.5 17.5 16.5 14.0 14.0 10.0
Cemetery 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0
Golf Course 9.0 12.5 12.5 12.5 12.5 13.5 13.5 14.5 12.5 12.5
162.5 170.0 177.5 180.5 175.5 163.0 159.5 157.0 153.5 145.5
(I) Eleven employees were moved from roads drainage to stormwater starting fiscal year 2003.
(2) Code enforcement division was transferred out from the Police Department starting fiscal year 2006.
Source: City of Sebastian, Florida 2000 -2010 Annual Budgets
Method: Using 1.0 for each full -time employee, and 0.50 for each part-time and seasonal employee
107
City of Sebastian, Florida
Operating Indicators by Function/Program
Last Ten Fiscal Years
Function /program 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000
General Government
Number of Annexation Approved 3 0 1 1 1 6 3 0 1 1
Acres of Annexed Property 26 0 3.87 3.3 25.55 484 80 0 80 6
Purchase Orders Issued 288 254 284 293 369 408 372 357 411 406
Public Safety
Police Department
Physical Arrest 543 662 697 744 786 653 557 515 627 738
Traffic Violations 4,849 4,418 7,221 6,291 5,457 5,431 1,939 2,528 2,781 3,562
Parking Violations 50 208 289 880 303 3,801 632 207 198 305
Building Department
Construction Permits Issued New 58 60 116 506 774 577 544 363 315 317
Estimated Value of Construction (in millions) 11.2 21.0 32.3 88.3 $114.7 $112.3 82.7 38.9 29.0 (1)
Transportation
Road Maintenance (man hours) 600 538 888 512 100 878 850 827 (1)
Asphalt for road maintenance (tons) 328 358 210 127 125 88 79 75 (1) (1)
Concrete for road maintenance (yards) (2) 0 0 0 300 0 283 277 275 (1)
Physical Environment
Cemetery
Cemetery Internments 74 68 69 76 79 86 81 73 78 85
Grave Deeds Sold 39 46 49 56 56 69 45 54 67 77
Stormwater
Mile of Swales Maintained 280 280 280 280 280 280 280 280 280 (1)
Mile of Ditches Maintained 50 50 50 50 50 50 50 50 50 (1)
Road Crossing Maintained 30 30 30 30 30 30 30 30 30 (1)
Catch Basins/Culverts 275 275 275 275 275 275 275 250 248 (0
Recreation
Recreation Center attendance 13,465 12,910 14,177 8,004 5,504 7,498 0) (p (q (q
Number of Discount Cards 879 950 1,004 2,690 1,000 993 855 890 746 791
Number of Golf Course Memberships 95 97 108 119 85 116 137 169 190 212
Average daily golf revenue $4,000 $3,988 $4,661 $4,441 $3,844 $4,551 $3,836 $3,798 $3,192 $4,263
(1) Information not available
(2) All road maintenance utilized asphalt, no concrete curbing was installed.
Sources: City of Sebastian Police Department, Growth Management, Public Works,
Golf Course, and Building Department.
108
Function /program
City of Sebastian, Florida
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
2009 2008 2007 2006 2005 2004 2003 2002 2001 2000
General Government
Square Footage Occupied 21,500 21,500 21,500 21,500 21,500 5,516 5,516 5,516 5,516 5,516
Departmental Vehicles 3 3 3 3 5 2 2 2 3 3
Public Safety
Police Stations 1 1 1 1 1 1 1 1 1 1
Square Footage of Police Department 25,600 25,600 25,600 25,600 25,600 8,700 8,700 8,700 8,700 8,700
Square Footage of Building Department 2,500 2,500 2,500 2,500 2,500 1,716 1,716 1,716 1,716 1,716
Police Vehicles 63 62 57 53 52 47 42 40 33 32
Building Inspector Vehicles 4 4 5 6 5 4 4 5 4 3
Transportation
Streets (miles) 156 156 156 156 156 156 149.6 140.0 140.0 140.0
Number of Streetlights 1,240 (I) 1,229 (1) 1,309 (1) 3,808 3,555 3,543 3,543 3,531 3,531 3,319
Airport 1 1 1 1 1 1 1 1 1 1
Public Service Vehicles 18 23 21 19 14 24 18 22 19 16
Physical Environment
Public Service Vehicles 7 11 10 12 13 6 7 4 4 4
Recreation
Number of Parks 18 15 14 14 12 12 12 10 10 10
Recreation Centers 2 2 2 2 2 2 2 2 2 2
Park Acreage 233.79 233.79 229.37 229.37 223.37 223.37 223.37 207.85 196.47 196.47
Recreation Center Square Footage 4,859 4,859 4,859 4,859 4,859 4,859 4,859 4,859 4,859 4,859
Park Maintenance Vehicles 13 13 12 11 10 8 6 6 5 5
Golf Course 1 1 1 1 1 1 1 1 1 1
Sources: City of Sebastian Administrative Services Department and Growth Management Department
(1) This number represents actual unmetered street lights in the City. (Source: Florida Power Light January Billing)
109
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HOME OF PELICAN ISLAND
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110
SINGLE AUDIT SECTION
The Single Audit Section contains various independent auditor's
reports and schedules as required by the Florida Single Audit Act,
Chapter 215.97, Florida Statutes for state and local governments that
receive state assistance.
Independent Auditor's Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance with
Governmental Auditing Standards
Independent Auditor's Management Letter
111
CITY OF
HOME OF PELICAN ISLAND
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112
Harris, Cotherman,
Jones, Price Associates
Certified Public Accountants Chartered
5070 North Highway A1A, Suite 250
Vero Beach, FL 32963
Tel 772. 234.8484
Fax 772- 234 -8488
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
Honorable Mayor and Members of City Council
City of Sebastian
Sebastian, Florida
We have audited the financial statements of the City of Sebastian, Florida (the "City as of and for the
year ended September 30, 2009, and have issued our report thereon dated March 5, 2010. 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.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City's internal control over financial reporting as
a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal
control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
City's internal control over financial reporting.
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 misstatements on a timely basis. A material weakness is a deficiency or 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.
Our consideration of the internal control over financial reporting was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting that might be significant deficiencies or material weaknesses. We did not identify any
deficiencies in internal control over financial reporting that we consider to be material weaknesses, as
defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free of
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.
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"Providing Vision and Direction to our Clients"
Member AICPA Division For CPA Firms
Private Companies Practice Section
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Member FICPA
Harris, Cotherman,
Jones, Price Associates
Certified Public Accountants Chartered
Honorable Mayor and Members of City Council
City of Sebastian
Sebastian, Florida
Page two
We noted certain matters that we reported to management of the City of Sebastian, Florida in a separate
letter, Independent Auditors' Management Letter, dated March 5, 2010.
This report is intended solely for the information and use of the City of Sebastian, Florida and
management, state awarding agencies and pass- through entities, and the Auditor General of the State of
Florida and is not intended to be and should not be used by anyone other than these specified parties.
e N i t e 4 0 0 1 4,74., Poll 1 Qdd daliie.0
est4citici l blri Ohgiktrd
Harris, Cotherman, Jones, Price Associates, Certified Public Accountants Chartered
Vero Beach, Florida
March 5, 2010
114
Harris, Cotherman,
Jones, Price Associates
Certified Public Accountants Chartered
5070 North Highway A1A, Suite 250
Vero Beach, FL 32963
Tel 772-234-8484
Fax 772 234 -8488
Honorable Mayor and Members of City Council
City of Sebastian
Sebastian, Florida
Compliance
Independent Auditors' Report on Compliance with Requirements Applicable
to Each Major Program and State Project and on Internal Control Over Compliance
in Accordance with OMB Circular A -133 and
Chapter 10.550, Rules of the Auditor General
We have audited the compliance of the City of Sebastian, Florida with the types of compliance
requirements described in the U.S. Office of Management and Budget (OMB) Circular A -133
Compliance Supplement, and the requirements described in the Executive Office of the Governor's State
Projects Compliance Supplement, that are applicable to each of its major Federal programs and State
projects for the year ended September 30, 2009. The City of Sebastian, Florida's major Federal programs
and State projects are identified in the summary of auditors' results section of the accompanying schedule
of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and
grants applicable to each of its major Federal programs and State projects is the responsibility of the City
of Sebastian, Florida's management. Our responsibility is to express an opinion on the City of Sebastian,
Florida's compliance based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States; OMB Circular A -133, Audits of States, Local
Governments, and Non Profit Organizations; and Chapter 10.550, Rules of the Auditor General. These
standards, OMB Circular A -133 and Chapter 10.550, Rules of the Auditor General, require that we plan
and perform the audit to obtain reasonable assurance about whether noncompliance with the types of
compliance requirements referred to above that could have a direct and material effect on a major federal
program or state project occurred. An audit includes examining, on a test basis, evidence about the City
of Sebastian, Florida's compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our
opinion. Our audit does not provide a legal determination on the City of Sebastian, Florida's compliance
with those requirements.
In our opinion, the City of Sebastian, Florida complied, in all material respects, with the requirements
referred to above that are applicable to each of its major Federal programs and State projects for the year
ended September 30, 2009.
Member AICPA
"Providing Vision and Direction to our Clients"
Member AICPA Division For CPA Firms
Private Companies Practice Section
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Member FICPA
Harris, Cotherman,
Jones, Price Associates
Certified Public Accountants Chartered
Honorable Mayor and Members of City Council
City of Sebastian
Sebastian, Florida
Page two
Internal Control Over Compliance
The management of the City of Sebastian, Florida is responsible for establishing and maintaining
effective internal control over compliance with the requirements of laws, regulations, contracts, and
grants applicable to Federal programs and State projects. In planning and performing our audit, we
considered the City of Sebastian, Florida's internal control over compliance with requirements that could
have a direct and material effect on a major Federal program or State project in order to determine our
auditing procedures for the purpose of expressing our opinion on compliance but not for the purpose of
expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not
express an opinion on the effectiveness of the City's internal control over compliance.
A control deficiency in an entity's internal control over compliance 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 noncompliance with a compliance requirement of a Federal program or a
State project on a timely basis. A significant deficiency is a control deficiency, or a combination of
control deficiencies, that adversely affects the entity's ability to administer a Federal program or State
project such that there is more than a remote likelihood that noncompliance with a type of compliance
requirement of a Federal program or State project that is more than inconsequential will not be prevented
or detected by the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
a more than remote likelihood that noncompliance with a type of compliance requirement of a Federal
program or State project will not be prevented or detected by the entity's internal control.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in internal control that might
be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal
control over compliance that we consider to be material weaknesses, as defined above.
This report is intended solely for the information and use of the management, City Council, federal and
state awarding agencies and pass- through entities, and the Auditor General of the State of Florida and is
not intended to be and should not be used by anyone other than these specified parties.
/44444., 64s440401441, 4„ w►, Petit 1 44d •ai itj
Ashite ae sorior#s 0holistic/
Harris, Cotherman, Jones, Price Associates, Certified Public Accountants Chartered
March 5, 2010
116
Type of Auditors' report issued on compliance
for major programs and projects:
SECTION I SUMMARY OF AUDITORS' RESULTS
Financial Statements
Type of Auditors' report issued:
Internal control over financial reporting: Unqualified
Material weakness(es) identified? Yes X No
Reportable condition(s) identified not considered
to be material weaknesses? Yes X None reported
Noncompliance material to financial statements noted? Yes X No
Federal Awards
Internal control over major programs and projects:
Material weakness(es) identified? Yes X No
Reportable condition(s) identified not considered
to be material weaknesses? Yes X None reported
Identification of major programs:
CITY OF SEBASTIAN, FLORIDA
Schedule of Findings and Questioned Costs
Federal Programs and State Projects
Fiscal Year Ended September 30, 2009
Name of Federal Project Federal CFDA No.
U.S. Department of Environmental Protection
Sebastian's Collier Canal Retrofit Project 66.46
Dollar threshold used to distinguish between Type A and
Type B programs $300,000
Auditee qualified as low -risk auditee?
117
Unqualified
Yes X No
City Of Sebastian, Florida
Schedule of Findings and Questioned Costs
Page 2
State Awards
Internal control over major State projects:
Material weakness(es) identified? Yes X No
Reportable condition(s) identified not considered
to be material weaknesses? Yes X None reported
Type of auditors' report issued on compliance for
major projects: Unqualified
Any audit findings disclosed that are required to be
reported in accordance with Chapter 10.550,
Rules of the Auditor General? Yes X No
Identification of major State projects:
Name of State Project State CSFA No.
Florida Department of Transportation
Construct Access Road
Construct Hangars
Airport Layout Plan
Construct Hangars
Acquire Maintenance Equipment
Florida Fish and Wildlife Commission
Florida Boating Improvement Program 77.006
Dollar threshold used to distinguish between Type A
and Type B projects: $300,000
SECTION II FINANCIAL STATEMENT FINDINGS
No matters were reported.
SECTION III FINDINGS AND QUESTIONED COSTS MAJOR STATE PROJECTS
No matters were reported.
SECTION IV PRIOR YEAR FINDINGS AND QUESTIONED COSTS MAJOR STATE
PROJECTS
No matters were reported.
118
55.004
55.004
55.004
55.004
55.004
City of Sebastian, Florida
Schedule of Expenditures of Federal Awards
and State Financial Assistance
For the year ended September 30, 2009
Federal State Agency Contract
Pass through Entity CFDA Grant State
Federal Program State Project No. No. Expenditures Matching
U.S. Department of Justice
Direct Programs:
Office of Justice Programs
Bulletproof Vest Partnership 16.607 N/A 12,735
COPS Secure Our Schools 16.71 2008CKWX064 5,162
ARRA FY2009 Recovery Act Justice Assistance Grant Program 16.804 2009 -SB -B9 -2156 21,757
Indirect Programs:
Passed through Florida Department of Law Enforcement
Justice Assistance Grant 16.804 2009 JAGD- INRI -3 -T8 -052 2,088
Total U.S. Department of Justice 41,742
U.S. Department of Environmental Protection
Indirect Programs:
Passed through Florida Department of Environmental Protection
Sebastian's Collier Canal Retrofit Project 66.46 C9- 99451507 -0 500,000.
Total U.S. Department of Environmental Protection 500,000
U.S. Department of Transportation
Direct Programs:
Design East Access Road 20.106 12 -0145- 008 -2008 172,653
Total U.S. Department of Transportation 172,653
TOTAL EXPENDITURES OF FEDERAL AWARDS:
The accompanying notes are an integral part of the audit.
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714,395
City of Sebastian, Florida
Schedule of Expenditures of State Financial Assistance
For the year ended September 30, 2009
State Agency Contract
Pass through Entity CSFA Grant
State Proiect No. No.
Department of Transportation
Direct Projects:
Joint Participation Agreement with Florida
Department of Transportation Aviation
Administration:
Construct Access Road
Construct Hangars
Construct Hangars
Acquire Maintenance Equipment
Florida Fish Wildlife Conservation Commission
Florida Boating Improvement Program
Total Florida Fish Wildlife Conservation Commission
TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE:
120
55.004
55.004
55.004
55.004
District Maintenance
Lighting Maintenance and Compensation Agreement 55.023
407706 -1 -94-01
409863 -1 -94-01
418164 -1 -94-01
418165 -1 -94-01
405122- 1 -72 -10
Expenditures
13,115
472,875
583,338
109,933
18,559
Total Department of Transportation 1,197,820
77.006 8092 425,291
425,291
1,623,111
The accompanying notes are an integral part of the audit.
A. Reporting Entity
City of Sebastian, Florida
Notes to Schedule of Expenditures of State Financial Assistance
September 30, 2009
The accounting policies and presentation of the Single Audit Report of City of Sebastian, Florida, (the "City") have been
designed to conform to generally accepted accounting principles as applicable to governmental unites, including the reporting
and compliance requirements of the Audits of State, Local Governments, and Non Profit Organizations and the Florida Single
Audit Act.
The reporting entity consists of City of Sebastian, the primary government, and each of its component units. The City includes a
Schedule of Expenditures of Federal Awards and State Financial Assistance in the Single Audit Section.
B. Basis of Accounting
Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the
financial statements. Basis of accounting relates to the timing of measurements made, regardless of the measurement focus.
The modified accrual basis of accounting is followed in the Schedule of Expenditures of State Financial Assistance. Under the
modified accrual basis, revenues are recognized when they become measurable and available. Revenues are considered to be
available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For
this purpose, the City considered revenues to be available if they are collected within one year after the end of the current fiscal
period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
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Harris, Cotherman,
Jones, Price Associates
Certified Public Accountants Chartered
5070 North Highway A1A, Suite 250
Vero Beach, FL 32963
Tel 772 234 -8484
Fax 772-234-8488
Honorable Mayor and Members of City Council
City of Sebastian
Sebastian, Florida
Independent Auditors'
Management Letter
We have audited the financial statements of the City of Sebastian, Florida as of and for the fiscal year
ended September 30, 2009 and have issued our report thereon dated March 5, 2010.
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 the Florida Single Audit Act. We have issued our Report
on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance with Government Auditing Standards, Independent
Auditors' Report on Compliance and Internal Control with Requirements Applicable to Each Major
Program and State Project and on Internal Control Over Compliance in Accordance with OMB circular
A -133 and Chapter 10.550, Rules of the Auditor General, and Schedule of Findings and Questioned
Costs. Disclosures in those reports and schedule, which are dated March 5, 2010, should be considered in
conjunction with this management letter.
Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the
Auditor General, which govern the conduct of local governmental entity audits performed in the state of
Florida and require that certain items be addressed in this letter.
The Rules of the Auditor General (Section 10.554(1)(i)1) require that we address in the management
letter, if not already addressed in the auditors' reports on compliance and internal control or schedule of
findings and questioned costs, whether or not recommendations made in the preceding annual financial
audit report have been followed. All findings and comments in the prior year have been resolved to our
satisfaction.
As required by the Rules of the Auditor General (Section 10.554(1)(i)2), the scope of our audit included a
review of the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds.
In connection with our audit, we determined that the City of Sebastian, Florida complied with Section
218.415, Florida Statutes.
The Rules of the Auditor General (Section 10.554(1)(i)3) require that we address in the management letter
any findings and recommendations to improve financial management, accounting procedures, and internal
controls. Nothing came to our attention that requires disclosure in the current year.
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Jones, Price Associates
Certified Public Accountants Chartered
Honorable Mayor and Members of City Council
City of Sebastian, Florida
Page two
The Rules of the Auditor General (Section 10.554(1)(i)5) require disclosure in the management letter of
the following matters if not already addressed in the auditors' reports on compliance and internal control
or schedule of findings and questioned costs: (1) violations of laws, rules, regulations, and contractual
provisions that have occurred, or are likely to have occurred; (2) improper or illegal expenditures; and (3)
control deficiencies that are not significant deficiencies, including, but not limited to: (a) improper or
inadequate accounting procedures (e.g., the omission of required disclosures from the financial
statements); (b) failures to properly record financial transactions; and (c) other inaccuracies, shortages,
defalcations, and instances of fraud discovered by, or that come to the attention of, the auditor.
The Rules of the Auditor General (Section 10.554(1)(i)6) also require that the name or official title and
legal authority for the primary government and each component unit of the reporting entity be disclosed
in the 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 statement. 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.
As required by the Rules of the Auditor General (Section 10.554(1)(i)7.a), the scope of our audit included
a review of the provisions of Section 218.503(1), Florida Statutes, regarding financial emergencies. In
connection with our audit, we determined that the City of Sebastian, Florida has not met any of the
financial emergency conditions described in Section 218.503(1), Florida Statutes.
As required by the Rules of the Auditor General (Section 10.554(1)(i)7.b.), we determined that the annual
financial report for the City of Sebastian, Florida for the fiscal year ended September 30, 2009, filed with
the 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, 2009.
As required by the Rules of the Auditor General (Section 10.554(1)(i)7.c. and 10.556(7)), we applied
financial condition assessment procedures. It is management's responsibility to monitor the entity'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 the same.
This report is intended solely for the information and use of the City of Sebastian, Florida and
management, federal and state awarding agencies and pass through entities, and the State of Florida
Office of the Auditor General and is not intended to be and should not be used by anyone other than these
specified parties.
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Vero Beach, Florida
March 5, 2010
124