HomeMy WebLinkAbout03232011Agenda Attachment CAFR 2009 - 2010C dNtuuaal
TthancS ?gwrt
City/ o} Mer ida
For the Fiscal Year October 1, 2009 through September 30, 2010
The C4FR cover depicts before and after photographs of the City
of Sebastian '.s Collier Canal Retrofit Project completed in Fiscal
Year 2010.
Collier Canal is the primary detention area for over 50% of the
City's stormwater runoff. The canal directly discharges into the
Sebastian River, which flows into the Intracoastal Waterway and
subsequently into the Atlantic Ocean.
Over the past decade, the .service life of the seawalls had reached a
critical stale and started failing. Many of the bulkhead sections
along the 2.1 mile stretch of Collier Canal had failed and literally
fallen into the canal. Silt had filled in the canal and reduced water
storage capacity and compromised the water quality.
The main project elements were reconstruction and stabilization of
2.1 miles of canal bank, dredging and disposal of 30,000 cubic
yards of sill, as well as continued water quality monitoring of the
canal.
The project was permitted through St. Johns River Water
Management District at the stale level, and the U.S. Army Corp of
Engineers at the federal level.
Funding of this project was made possible by the Florida
Department of Environmental Protection. Total project cost was
$4, 925,100.
Notice to proceed was issued to S.E. Cline Construction, Inc., on
March 9, 2009 and the project was completed in July 2010.
P{±otograph provided courtesy of.•
Everlast Synthetic Products, t,LC, Vinyl Sheets for Seawalls.
CITY OF
SEBASTIAN, FLORIDA
HOME OF PELICAN ISLAND
Comprehensive Annual Financial Report
For the Year Ended September 30, 2010
CITY COUNCIL
Richard H. Giilmor
Jim Hill
Andrea Coy
Don Wright
Eugene Wolff
Prepared By: Administrative Services Department
Mayor
Vice -Mayor
Councilmember
Councilmember
Councilmembcr
CITY OF
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, 2009
y
Organizational Chart
List of Officials
CITY OF SEBASTIAN, FLORIDA
COMPREIIENSIVE ANNUAL FINANCIAL REPORT
SEPTEMBER 30, 2010
TABLE OF CONTENTS
INTRODUCTORY SECTION Page
'fable of Contents
Letter of Transmitta: v
Certificate of Achievement for F..xccllence 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 1a
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.
34
Statement of Cash Flows Proprietary Funk 75
Statement of Fiduciary Net Assets Fiduciary Funds 27
Statement of Changes in Fiduciary Net Assets— Fiduciary Fund 28
Notes to Financial Statements 29
Required Supnlementary 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 fax Special Revenue Fund 53
Schedule of Revenues, Expenditures, and Changes in Fund Balances— Budget and
Actual Riverftont Redevelopment Agency Special Revenue Fund 54
Notes to the Required Supplementary Information— Budget Comparisons 55
Police Officers' Pension Plan Schedule ofContributions from the Employer and other
Contributing Entities 56
Combininstand Individual Fund Statements and Schedules
C ombining Balance Sheet Nonmajor Governmental Funds 60
Combining Statenrect of Revenues, Expenditures, and Changes in Fund Ralances Nonmajor
Governmental Funds 64
Schedule of Revenues. Expenditures, and Changes in Fund Balances Budget and
Actual Local Option Gas Tax Special Revenue Fund 6R
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
ii
Schedule of Revenues. Expenditures, and Changes in Fund Balances Budget and
Actual SDOrmwater 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
Set assets by Component Last Ten Fiscal Years 80
Changes in Net Assets Last Ten Fiscal Years 82
Fund Balances, Governmental Funds Last Ten Fiscal Year 86
Changes in Fund Balances, Ciovcmmcntal Funds Last Fen Fiscal Years 88
Program Revenues by Function /Program —Last Ten Fiscal Years 90
Revenue Capacity
'Tax Revenues by Source, Governmental Funds— Last Ten Fiscal Years 92
Property Tax Rates, Direct and Overlapping Governments T.ast Ten Fiscal Years 93
Assessed Valuation and Estimated True Values of Taxable Property Last Ten Fiscal Years 94
Principal taxpayers —Year 2010 and Year 2001 96
Property' tax Levies and Collections Last Ten Fiscal Years i 97
Debt Capacity
Ratios of Outstanding Debi by Type— Last Ten Fiscal Years 98
Computation of Legal Debt Margie[ September 30, 2010 99
Direct and Overlapping Governmental Activities Debt, General Obligation Bonds
September 30, 2010 99
Ratios of General Bonded Debt Outstandine 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 Employer —Year 2010 and 2001 106
Operating information
Full -time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years 107
Operating Indicators by Functiom'Prograr Last Ten F -seal 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 Matter Rased on an Audit of Financial Statements Performed in Accordance with
Governmental Auditing Standards 113
Independent Auditors' Management Leiter 115
Iii
CITY OF
HOME OF PELICAN ISLAND
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iv
March 18, 2011
Honorable Mayor and City Council
City of Sebastian, Florida
Dear Council Mcm b c r s:
Profile of the Govermnent
cmO
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, 2010, 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, 2010.
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 ol• any
material misstatements.
Chapter 218.39, Florida Statutes requires that the financial statements of the City of Sebastian he 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 ('`clear.') opinion
on the City of Sebastian's financial statements for the year ended September 30. 2010. 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 cast
coast of tae Florida Peninsula (between Melbourne and Vero Beach) in an area known as the Treasure
Coast. It is recognized as the Ilome of Pelican Island, the first designated wildlife refuge in :he United
States, a Millennium City, and a Tree City USA.
The City o1' Sebastian was first incorporated as the Town of Sebastian in 1924. In the late 1950s General
Development Corporation purchased the land from the Mackie family of Miami and began the
development of a planned community that is now the City of Sebastian. The City has a population of
22,922 living in an area of approximately 14.6 square miles. The City is empowered to levy a property
tax on beth real and personal property located within its boundaries. it also is empowered by state
statute to extend its corporate limits by annexation, which it has done from time to time.
The City is a Florida municipal corporation with a five member City Council. Council members serve a
two -year term. Annual elections are held on the first Tuesday following the first Monday in November
and two members are elected in even- numbered years and three members are elected in odd numbered
years. Elections are non partisan and at- large. Mayor and Vice Mayor are elected from among the
members of every newly seated Council at a Special meeting following the election each year. The City
has operated under a Council -City Manager form of government since 1989.
The City provides a wide range of services including general government administration, police
protection, the construction and maintenance of local roads, public works, recreational and cultural
activities, a golf course, a general aviation airport. and a building department to enforce building codes.
This report includes all funds of the City. In evaluating the City as a reporting entity, we have included
all component units for which the City Council is financially accountable. The component units have
been blended with the financial statements pre3cnted 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 he 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 four 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. Census Bureau and median household income For 2008 was $48,267 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 1.fe of the extension far the Pity'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 maintained at the same 33456 as the prior year, although the City experienced another
sizable decline in taxable value. Construction activity in fiscal year 2010 continued to he low, with just
36 permits being issued for new construction in fiscal year 2010 with a value of S6.6 million. The
decline is primarily attributed to the slowdown of the housing market.
General Fund unassigned fund balance and amounts committed by the financial policies resolution
based on 25% of the general fund expenditures budget, were 45.7% of the general fund expenditures
budget. The City has been steadfast and refined to spend down these balances due to uncertainty about
the fuuue due to the slow down of building activity and because the City understands reliance on
accumulaed fund balances to fund operating expenditures is not a prudent fiscal strategy. To this end,
the budget for next year incorporates reductions in operating expenditures and plans for no reduction of
fund balances.
Major Initiatives
Administration There were several significant initiatives during the past fiscal year. Through request
for proposals. the City selected and employed a new financial advisor that assisted with the payoff and
financing of a bank note to allow for additional road paving work and also employed a new investment
advisor that is assisting with restructuring the investment holdings. In addition, collective bargaining
agreements were negotiated that reduced the contract periods to one year, which is considered important
to the City's ability to have flexibility in controlling personnel costs during these difficult economic
times. Planning also started on other projects, including a detailed study of property values and
evaluation of the appropriate amounts of insurance coverage, an organizational review of the City
garage operations, plus an upgrade on the video broadcasting capabilities for public meetings.
Storrnwater The main them of stomiwater effort. expended for the past fiscal year has continued to he
on the City's Storrnwater 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 swalc system by installing '!a rounds. The City also started outsourcing the Swale and ditch
maintenance work to enable City crews to focus on different sorrmwater maintenance practices. During
fiscal year 2010, a significant project to replace the canal walls along Collier Creek was accomplished.
Traffic Transportation The City continues waking on a long -term street resurfacing program for
the next 10 to 15 years. City administration wit also continue to program funding for streetscape
projects to help maintain public safety and heaut:fication 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 was 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 scnes 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 arc 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 imp:ovcments
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.
vii
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 lo 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 shill.. 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
comtunity by patrolling the city to deter critne and tnaintain the community policing philosophy.
Culture /Recreation Parks and Recreation completed the dog park and made renovations to the
recreational facilities at Schumann Park. It also initiated plans to place a canopy over hart of the
children's splash park and to build an office facility at the skate park. During the year. the Ci.y Council
conducted a review of proposed projects in the community redevelopment area and reaffirmed some
major capital projects that had been previously defined in the capital improvements program. With
substantial grant fiinding, the City was able to acquire riverfront properties that will be renovated and
developed as a "working waterfront" concept, which is expected to have a positive impact on the arca.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Ccrtificatc 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, 2009. 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 organised 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 pericd 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 fbr another certificate.
The preparation of this report would not be possible without the dedicated seniice of the Administrative
Services department staff. '!'heir 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.
Respec 1 y submitted,
y Inner
City Manager
Kenneth W. Killgore
Director of Finance
viii
Certificate of
Achievement
for Excellence
in. Financial
Reporting
Preserved to
City of Sebastian
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September30, 2009
A Certificate or Achievement for Excellence in Financial
Reporting is presented by the Gnvertmtent 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.
Executive Director
ix
CITY
CLERK
ADMINISTRATION
INVESTIGATIONS 1
H J
H
ROAD PATROL
CODE
ENFORCEMENT
1
SUPPORT
SERVICES
DISPATCH
CITY OF SEBASTIAN, FLORIDA
ORGANIZATIONAL CHART
CITIZENS OI I
SEBASTIAN
CITY COUNCIJ..
CITY
MANAGER
1
ADMINISTRATIVE
SERVICES
MANAGEMENT
INFORMATION SYSTEMS
GROWTH MANAGEMENT 1
BUILDING DEP.ARTMENTI
GOLF COURSE
1
AIRPORT
1
X
1-►
BOARDS S
COMMISSIONS
CITY
ATTORNEY
1
PUBLIC WORKS
ROARS
MAINTENANCE
H I
H cF.\rRAL GARAGE
PARKS
RWCRIkA'1'RIN
CEMETERY
FACILITIES
II MAINTENANCE
STORM WATER
City Manager
City Clerk
City Attorney
DEPARTMENT HEADS:
Police Chief
Administrative Services Director
Finance Director
MIS Director
Public Works Director
Growth Management Director
Building OiTicial
Cml Director
Airport Director
CITY OF SEBASTIAN, FLORIDA
CITY OFFICIALS
xi
AL MINNF.R
SALLY A. MAIO, MMC
ROBERT GINSBURG
MICHELLE MORRIS
DEBRA KRUEGER
KENNETII W. KILLGORL
FRANK LOSARDO
JERRY CONVERSE
REBECCA GROHAI.1.
WAYNE I SL '1ThE
GREG GARDNER
JOSEP11 GRIFFIN
CITY OF
HOME OF PELICAN ISLAND
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xii
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
CITY OF
HOME OF PELICAN ISLAND
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1
Harris, Cotherinan,
Jones, Price 6z Associates
Cc cni.cd PUblx Axcc_r.rant. CI.. :cercd
507C North Highway Al A, Suite 250
Vero Beach, Ft. .32 %3
1cl 172. 234.848}
Fax 772-2.34-8488
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 (the "City as of and for the year ended
September 30, 2010, which collectively comprise the City's basic financial statements as listed in the
table cf 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 nfthe 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 consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly we
express no such opinion. An audit also includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the accounting principles used and the
significant estimates made by management, as well as evaluating the overall financial sta:cment
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 as of September 30, 2010, and the respective changes in
financial position and cash [lows, 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 February 24,
2011 on our consideration of the City'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 contml 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 lim ited procedures which consis:ed principally of inquiries of management regarding
"Providing Vision and Direction to ewr Clients"
Member AICPA Ui•i: ion. 10r CIA Finn.
P114M�e Conlpau is PIN mce Section
Me,ntcr A[CPA
3
Member F1CPA
Harris, Cctherrnan,
Jones, Price Associates
Certified Publ cACP':rrar4... Chr -rem!
Honorable Mayor and Members of City Council
City of Sebastian
Sebastian, Florida
Page two
the methods of measurement and presentation of the required supplementary information. However, we
did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of t'orming an opinion on the financial statements that
collectively comprise the City's basic financial statements. The introductory section, combining and
individual fund financial statements, the capital assets used in the operation of government funds, and
statistical tables are presented for purposes of additional analysis and are not a required part of the basic
financial statcmcits. The combining and individual fund financial statements, the budgetary
comparisons, capital asset schedules and other financial schedules 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 pat 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.
W evailo, tr nu,
Vero Beach, Florida
February 24, 21111
zw, ,.mia-cc Ctatdeastmv
w,r itz"�a aliAtter(,
4
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 tinancial issues, (b) provide an overview of the City's financial activity, (c) identity changes in the
City's finaacial position, (d) identify any material deviations from the financial plan. and (e) identify individual
fund issues or concerts.
Since the Management's Discussion and Analysis (MD.ZA) 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).
IIIGHLIGIITS
Financial Highlights
The assets of the City exceeded its liabilities at the close of the tiscal year 2010 by S52,632,005 (net
assets). Of this amount, $3,546,671 (unrestricted net assets) may be used to meet the City's on -going
ob'igations to citizens and creditors.
The city's total net assets increased by $2,277,138 resulting from an increase of $2, I4C,287 from
governmental activities and $136,851 from business -type activities
Governmental funds reported a combined ending fund balance of $14,369,442, a decrease of $786,090 in
comparison with the prior year. Approximately 15% of this amount. $2.164,910 is unassigned and
available for spending, a decrease of 8160,062 from fiscal year 2009 due to less property lax revenue.
The golf course and airport enterprise funds reported higher deficits in unrestricted net assets. With no
lorger having debt service payments, it is expected the golf course will be able to reduce that deficit. The
airport deficit is the result of investment in capilal assets that will ultimately be beneficial. The building
cnlcrprisc fund is using accumulated net assets to sustain services until construction activity increases.
USING THIS ANNUAL REPORT
The annual report consists of a series of tinancial 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 operalions in more detail by providing
information aboul the City's most significant funds. The remaining statements provide tinancial 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 qucslions 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 ((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 assets and liabilities as one way to measure the City's tinancial health, or financial position.
Over time, increases or decreases in the City's net assets, is one indicator of whether its ,financicd health is
improving or deb-totaling. You will need to consider otaer nonfinancial factors, however, such as changes in the
City's property tax base and the condition ofthc City's reads, to assess the overall health of the City.
5
In the Statement of Net .Assets and the Statement of Activitics,.we divide the City into two kinds of activities:
Governmental activities Most of the City's basic services are reporled 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 ro be :stablishcd
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 Funtls
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 -Rinds 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 pmvide 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
boltom of the fund financial statements.
The City maintains filleen individual governmental Rinds. 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 find, discretionary sales tax special revenue fund, riverfrort redevelopment
special revenue fund, transportation improvements capital project fund and stormwater utility improvements
capital project fund, all ot'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 fomr of combining statements beginning on page 60.
Annual budgets arc 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
budges.
The basic govcrnmcntal 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. Tn fact, the
City's enterprise funds (a component of proprietary funds) are the same as the business -type activities we report
in the govemment -wide statements but provide more detail and additional information, such as cash flows, for
proprietary funds.
Ile basic proprietary find 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 no :es 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 it:. obligation to provide pension benefits to its employees. Required supplementary information can be
found on pages 51 -56 of this report.
Financial Analysis of the City as a Whole
THE. CITY AS A WHOLE.
The City's coinhined net assets increased $2.2 million from $50.9 million to $52.6 million or 4 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
l) and changes in net assets (Table 2) of the City's governmental and business -type activities.
7
GOVERNMENT-WIDE S'1'ATEMF.NTS
Statement of Net Assets
The following table reflects the condensed Statements of Net Assets:
Table 1
Statements of Net Assets
as of Se ptent ber 30, 2010 and 2009
nn thousands)
Governmental.Actiiitia Business-type Adiviiics total Primary Gtnornmeit
2010 2009 2010 2009 2010 2009
Curren' and other assets 15.664 17.084 5 166 692 S 15,830 5 17,776
Capital amen.. 42,378 38 -673 1 1,390 11,018 53 768 49.691
Total accts 58.042 55.757 S 11,556 11,710 S 69.598 67,467
Nat cute ni liabilities 15,517 14,782 S 232 534 15,749 15,316
Other liabilities 940 1.530 277 265 1.217 1,795
Tars] lixhilitim 16.457 16,312 S 509 799 S 16.966 S 17,111
Net assets:
Invested in capitalasscts.
ad urtelalad debt 28.939 26,745 11.390 10,726 5 40.329 37,471
Restricted 8 -757 8,197 98 R -757 8295
Unrcwtridtx] 3,889 4,502 1343) 87 3.546 4,589
'IoW] net assets 41,585 39 444 11.047 10.911
For more detail information see the Statement of Net Assets on page 1 5.
Total net assets of the govemtental activities increased from $39.445 million to $41.585 million. Total net assets
for busineas-type activities increased from S10.911 million to $I 1.047 million
The increase in governmental activities capita] 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 -tern debt.
The decrease in unrestricted net assets is mainly due to the corresponding increase in restricted net assets caused
from invesment in capital assets.
The increase in net assets for business -type activities is primarily due lo the increase in capital assets funded by
the Federal Aviation Administration and the Florida Department of Transportation for the City's municipal
airport.
8
The following table shows the revenue and expenses of the total primary government.
Tahle 2
Changes in Net Assets
For the Fiscal Years Ended September 30, 2010 and 2009
(in thousands)
Governmental Business -type 'r ntai I'rbiiary
Activities Activities Government
2010 2009 2010 2009 2010 2009
REVENLES
Program fuselages:
(Morgue for services 1,266 S 1,291 1,959 2,205 3.225 3,496
Operating grants end wntcibutions 210 228 210 228
C:apitalgrants and con rr'tations 3.179 1,865 !Nf5 1357 4,084 3222
General revenues:
l'ropemlaxcs 4,164 4,802 4,164 002
Other taxes 4,765 4,670 4.765 4,670
Incergo arunmml 1,825 1.821 1,825 1.821
Other 1,523 1.729 218 6 1,741 1,735
1'nt& resent* 16.932 16.M16 .3,082 3,568 X01_3 19,974
EXPENSES
Omani govarunml 3,309 3.170 3309 3.170
Public :fluty 5,721 5,421 5,721 5.421
Phydcden•im 1,948 1,348 1,948 1,348
1'ranivonation 1,864 7:436 1,864 :1.4:1A
Economic environment 136 167 136 167
Came and re:acatinn 1.241 1:073 1,240 1,073
Cnlfcnutse 1.388 1,4 1,388 1,477
Airport 1,068 1.080 1,068 1,080
Building 497 534 497 534
lnlemi. Iiscal charges 566 730 566 730
'Intal expeives 14,784 15,347 2,953 3,091 17,737 18,438
Change in net assets Ware transfers 2,148 1,059 129 477 1,536
Transfers 07 7
Inercxse in rot assets 2.I41 1.059 136 477 2,277 1,536
Net assets Danbcr 1, 2009 39,444 38.385 10.911 10.434 50, 40,819
Net assets- ieprember30,2010 41,585 39,444 11 ,047 10,911 52.632 50.355
Overall the total revenues increased $40 thousand from the previous year but only as a result of an increase in
capita] gra:its that more than offset declines in almost every other revenue source categories. The total expenses of
all programs decreased by 4.0% ($701 thousand) because of a reduction in transportation expenses. Our analysis
below separately considers the operations of governmental and business type activities.
Governmental Activities
Ciovernmeatal activities revenues exceed expenses by $2.148 million. Total revenues increased approximately
$526 thousand from the previous year. The increase was primarily due to receiving capital grant proceeds. More
revenues were received in other taxes but Tess was received in other categories, particularly property taxes. Total
expenses decreased $563 thousand from the previous year. The largest decreased in spending was in the category
of transportation.
9
The following is a graphic illustration of the comparison for governmental activities revenue and expenses.
c
C
Business -type Activities
E c`
2,500
2000
1,000
300
6.0410
S,M0
S,.MO
5,000
2,000
1,000
C
Governmental Activities Comparison
fur Fiscal Year 2010 and Fiscal Year 2009
il0 11
tyt f 00 as S ys S ys s ot a tn` yU a 0o c 00 y Nc 00 is. c s, ti gNN
0 ;40 4- vaTy+'t' n a' Q yam ae ao
pox Ci te Qtly der oao
E G aa
RevenueiExpenxe types
02070 •2)09
Revenues of the City's business -type activities (sec Table 2) decreased $486 thousand primarily Secause of
capital grants received by the Airport in the prior year. Expenses fell by 4.5% for all the City's business -type
activities, with reductions in charges by General Fund being the primary cause of expenses for the Building
Enterprise and Airport expenses declining by 6.9% and 1.1% respectively; Golf Course expenses declined by
6.0% duc to reductions in personnel costs, savings by rebidding the groundskeeping service contract and a
reduction in rent paid to the Airport. The Building Enterprise has been reduced to minimal staffing in order to
preserve ifs cash reserves until the economy and building activity resumes. The Golf Course has also minimized
staffing and operating expenses until it made the final debt service payment and until it sees an improvement in
revenue, which is anticipated with better weather and an improved economy. The Cily'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 granffunding.
Following is a graphic comparison of the City's business -type activities.
Business -Type Activitim Comparison
for Fiscal Year 2010 and Fiscal Veal 2009
OS" aa ...act
�0aa�
Re+ciur ESpunr IYp es
02010 ■2007
10
I-7 a
FINANCIAL ANALYSIS OF THE CITY' FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance related legal
requirements.
Governmental Funds
The focus of the Cily's governmental funds is to provide information on near -term inflows, outflows, and
balances of spendable resources. Such information is useful in assessing the City's financing requirements. In
particular, unassigned fund balance may serve as a usef measure of a government's net resources available for
spending a- the end of the tiscal 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 $14.4 million, which is a decrease of $0.8 million from the prier year of
$15.2 million. Approximately 15.11/4 of this total amount ($2.2 million) constitutes unassigned fund balance,
which is available for spending al the City's discretion. The remainder of fund balance is classified as
nonspendahle ($1.2 million), restricted ($7.9 million), committed ($3.1 million) or assigned ($,03 million).
The general fund is the chief operating fund of the City. At the end of the fiscal year, unassigned fund halance of
the general fund was $2,164,910. while total fund balance was $5,612,399. .As a measure of the general fund's
liquidity, it inay be useful to compare both unassigned find balance and total fund balance to total fund
expenditures. Unassigned fund balance represents 20 percent of total general fund expenditures, while total fund
balance represents 51 percent of that same amount.
The fund balance of the City's general fund decreased by $155,715 during the current fiscal year. Kev factors in
this reduction are as follows:
Property tax revenues decreased by $542,402 due to reductions in taxable property values.
Fines increased due to collections of code enforcement fines.
investment earnings decreased $39,872 due to lower rates of return.
Contributions and donations decreased $15,020 because of unusually large contributions the prior year.
frolic utility taxes increased $95,592 and franch :se fees decreased $98,561.
All other revenues decreased by $4,051.
Transfers in from other Funds decreased $56,650 because of higher than normal transfers the prior year.
Expenditures decreased $1,033,314 due to reductions in employees and cuts in other operating accounts.
The discretionary sales tax revenue special revenue fund has a total unreserved and undesignated fund balance
of 1,094,0095. The increase from the $673,676 total fund balance of the prior year is mainly due to transfers made
back 10 this fund from previously funded projects that ended up being funded by grants.
The riverfront redevelopment special revenue fund has an unreserved and undesignatod fund balance of
$682,591. The decrease from the $984,638 total fund balance of the prior year is mainly due To the required
matching portion to grants received for the purchase of certain properties on the riverftont.
The transportation improvements capital project fund has a total fund balance of $488,988, 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 $157,471, all of which is
reserved for stormwater capital projects. The decrease from the $2,080,225 total fund balance of the prior year is
due to large expenditures made on the stormwater capital project to make improvements to Collier Canal.
11
Proprietary Funds
The City'! proprietary funds provide the saute type of information found in the government -wide financial
statements, but in more detail.
The total net assets of the golf course fund of the end of the fiscal year amounted to 83.31.000, w hile the
unrestricted net assets (deficit) amounted to ($335,947). Compared to the prior year in the same category, net
assets are $46,603 less than the prior year, while the unrestricted nel assets has a decrease of $175,347 from the
prior year. This is mainly due to the use of funds for the final payment on 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 $10,190,162, while the
unrestricted net assets (deficit) amounted to ($525,184). Compared to the prior year in the same category, net
assets have increased by $313,253 while the unrestricted net assets decreased $135,816. The eecrease 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 $526,202, while the unrestricted
net assets amounted to $518.791. The building fund continues to experience operating losses, as a result of the
slowdown in activity and drop in collections of building permit tees.
Other factors concerning the finances of these three funds have already been addressed in the discussion of the
City's business -type activities.
Budgetary Highlights
Over the course of the fiscal year. the City Council revised the City budget four times. These budget amendments
fnll into throe categories. Thu first category includes runcndmonts rind supplcmcnlnl appropriations that were
approved shortly atter the beginning of the year and reflect fund balances carried over from the prior fiscal year to
reappropriate transfers to cover certain capital projects. 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:
$715,923 supplemental appropriation to the Discretionary Sales 'l'ax, Recreation Impact Fee and
Stormwater Utility Funds to cover transfers for aapilal projects that were carried forward from the prior
fiscal year.
$28,329 supplemental appropriation for proceeds from a JAG Grant for equipment purchases.
$3 supplemental appropriation to the Law fnthrccrncnt Forfeiture Fund for expenditures on vehicle
towing charges and drug investigation monies.
$10,000 supplemental appropriation to the Golf Course for an emergency purchase of a reconditioned
fairway cutting unit.
$2,349,006 supplemental appropriation to the Local Option Gas 'l'ax Fund related to the pay oft' of the
former bank note and to establish appropriations necessary for the new bank note.
$231,174 reduction to the Discretionary Sales Tax Fund to reflect the cancellation of a project.
$I6,350 supplcrncntal appropriation to the Recreation Impact Fee Fund for construction of a public park
at the Airport and for fencing at the Dog Park and Barker Street Sports Complex.
$6.400 supplemental appropriation to the Riverfront Redevelopment Fund to complete the Yacht Club
Finger Piers project.
$23.636 supplemental appropriation for a projec: related to the Schumann Park restrooms.
$134,852 and $149,082 supplemental appropriations for insurance premiums received from the State and
transferred to the Police Pension Plan and to fund additional required employer contributions to the Police
Pension Plan.
$85,850 supplemental appropriations to cleanup transfer accounts in several Special Revenue Funds for
differences in amounts budgeted and expended toward projects during the year.
12
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 franchise fees received from Florida Power and Light
Company. Lower than anticipated investment eamings also contributed to the shortfall. A positive overall
variance on expenditures resulted in a lower draw on existing fund balances than had been anticipated_
6,392,481
Capital Assets
At the end of fiscal year 2010 the City had $80,942,105 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 56,846,603, or 9.2%, 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
hupravemen.s
k ?qu ipnient
Infraanrdure
Construction -in
Progress
Totals
2010
8,007,437
12.061,711
5.738,5.16
7,742,063
30,891,580
CAPITAL. ASSET AND DEBT ADMINISTRATION
Governmental
Activites
951,1.14
2009
5.699.045
11281,•188
5.704,686
7.78413
25
3958,971
59,557,028.
Table 3
2010
S 9.060
5.08 .230
1,912,229
1,031439
7,477.976
15 .549,621
Business -type
Activities
2009
S 9,060
5,082.120
1,9111.]03
1,062 333
6,237,799
3.690 207.059
13
Totals
2010
8,016,497
17.144,941
7.680,775
8,775,502
38,369.556
20119
5,708.105
16.366.608
7.644,789
R./146,546
3 1, 363,424
951,831 •I.166,030
14.538117.1 80,942,105 7.1,095,.512
Governmental activities had the following major increases during the fiscal year:
An increase in land mainly due to the purchase of property at the riverfront.
An increase in buildings mainly due to the purchase of a building at the riverfront.
An increase in infrastructure mainly due to making improvements to Schumann Park and other
recreational facilities_
Business -type activities had the following major increase during the fiscal year:
An increase in infrastructure mainly due to the construction on an access road.
Debt
On September 30, 2010, the City had S13,449,000 in bonds and notes outstanding versus $13,421,679 on
September 30. 2009 as shown in the table on the following page:
The slight increase in debt is attributable to the retirement of debts and the issuance during the year of a note. 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 :he highest
rating given by rating agencies. The City's Recreational Facilities Improvement and Refunding Revenue Bonds,
Series 2001 received a AAA rating from Standard It Poor's. However, ratings on the insurance agencies have
since 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 mites to the
financial statements.
Table 4
Governmental Waviness -lope
Activities Activities Toro Ls
2010 2009 2010 2009 20 ui 2009
infrastrudur, sales surtax revenue
hoods, Series 21113 S 5,6 6,255,000 Y 5,655,000 6.255.000
Infrastruaur_ sales surtax ivvenue
bonds, Sena 203A 1325,000 1,470,000 1.325,000 1,470,000
Slavmwaterutility nwmue bonds.
Series 2003 4,055,000 4315,000 4,055.000 4,315.00
Notes payable (backed by local
optical gas tar) 2,414,000 1,089.203 2.41 4,000 1.089.203
Recreational facl itics
impnnaaass and refunding
revenue bonds. series 2001 292,476 292.476
Totals 13,449,0110 13,129,203 292.476 S 13,449,000 13,421,679
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
The City's elected and appointed officials considered many factors when setting the fiscal year 2011 budget, tax
rates, and fees that will be charged for the business -type activities. One of those factors is Ihe economy.
Schastian's local economy consists largely of retail and scnicc 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 Publ ix Supermarket and Wal -Mart 5.ores, lnc. The Indian River County unemployment rate
in 2010 was 15.4% up from 14.1% in the previous year. This is analogous to the economic slowdown being
experienced throughout the state and nation. Again in fiscal year 2010, the city experienced a major reduction in
property value (14.13% decrease) and a small decline in new construction permits (from 58 to 36). 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 2011. Amounts
available for appropriation in the General Fund budget are $10,454,:140, a decrease of 3.3% from the original
fiscal year 2010 budget of $10,809,831. Uncertainty abnutthe 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 decrease in golf revenues in fiscal year 2010 mainly due to a slight reduction
in number of rounds being played. Although it has reduced operating expenses as much as possible, revenues
have been inadequate to provide sufficient funds to also cover the payments on long term debt. A temporary
interftind loan from Genera] Fund was made at Ihe end ot' the year to provide sufficient cash for the final payment.
With no longer having to cover the debt service payment, it is expected that a reasonably good level of revenues
will enable repayment of the loan.
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 slww 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 Cily of Sebastian, 1225 Main Street, Sebastian, Florida 32958.
14
City of Sebastian, Florida
Statement of Net Assets
September 30, 2010
Governmental Business -type
Activities Activities
ASSETS
Cash and cash equivalents 3,677,857 289,785 3.967,642
Inve 1rneota 6,369153 428,393 6,797.646
Receivables 755,966 92,088 848.05+
Inlenml balances 685.0110 (685,0001
I'rcpaid items 86,520 17,366 103-886
Inventory 65,728. 24,152 89,880
Restricted assets:
Temporarily restricted:
Cash and cash equivalents 2,738,756 2- 738
Inveslmcnls 20.772 20371
Permanently restricted:
investments 674.193 674.193
Overfunded pension costs 165,630 165,630
Deferred charges 424.711 424.714
Capihtl asses not being depreciated:
Land 8:007,437 9,060 8- 016,49;
Construction in progress 951,144. .1,690 951,834
Capital asses (Act of accumulated depreciation]:
Buildings 9.013.139 4,332,040 13,315,479
Improvement; other than buildings 3.564,503 1,357,388 4,921.891
Machincr and equiprnent 1.126186 302,808 1,729,094
infrastructure 19.415.195 5,384,718 24,799,913
Total assets 58.042.393 11.556,488 49,598,881
LIABILITIES
Accounts payable and other current
Iiahilities 703,471 136.520 839,991
Accrued interest payable 236.077 236,077
Unearned revenues 1,132 140,891 142,023
Non- current liabilities;
Due within one year 1.415 11,111 1,426
Due in mare than one wear 14,101.359 220,602 11,321,961
Total liabilities 16 509,124 16.966,87E
NET ASSETS
Invested in capita! assets, net ol'related debt 28,938.587 11,389,704 40,328,291
Restricted for:
Debt service 1 1.737,601
Capital 3,122,728 3,422328
Perpetual care:
Expendable ]85.270 185,270
Isanexpendable 674 -193 674.193
Other expenditures 2,737 2.737,21 i
Unrestricted 3,889,011 1342,340] 3,546671
'.oral net assets 41,584 .5 11,017,361 9 52.632,005
The aceontptmying. notes inancial atatentenlS arc tm integral part of this financial statement,
15
Total
City of Sebastian, Florida
Statement of Activities
For the year ended September 30, 2010
Operating Capital
Charges for Grants and Grants and
FunctioniPrngram, Expenses Services Contributions Contributions
Governmental Activities:
General gov :rnment S 3,3(19,381 S 203,915 5,229 S
Public safety 5.720.933 118,368 186.262
Physical en%inmmenr. 1,947.605 881,338
Transportation 1.862.551 18.559 595.746
Economic environment 13.885 2.556,872
CulturaVrccwation 1.240 62,046 20,000
lnterest and Racal charges 566.410
Total govcmmcntal activities 14 1,205,66? 210,050 3
Business-type activities:
CIclCCoursc 1,38 €.158 1,335,647
Airport 1.067,525 468,698
Building 496.800 356,264
Total business -type activities 2,952 2,160,609
Total guvommenl 5 17,736.631 S 3.426,276
General Revenues:
I'ropcny taxes, Levied for general purposes
Sales ansl use ;axes
Franchise fees
Stale shared. revenues not rrslriutud to specific programs
Interest carnires
Miscellaneous
Total general revenues
TmnxCers
Total general revenues and transfers
Change in nei assets
N et assets beginning
N et assets ending
pro Revenues
The accompanying rules lu financiul statements iva an integral part of this financial statement
16
904
904,853
210.050 4.083.471
Net (Expense) Revenue and
Changes in Net Assets
Governmental Business -type
Activities Activities
Total
(3,100237) S (3,100,237)
(5.416303) (5:116.303)
(1,06fi 267) (1,066,267)
(1.249 246) (1.249.246)
2.420.987 2.420.987
(1,152,337) (1
(566.110) (566.410)
(10,129,813) (10,129,813)
(10.129.813)
(52,511) (52,511)
306.026 306.026
(140,536) (140,536)
112.979 112,979
112.979 (10.016.834)
4. 64.'28 4.164.128
4.765 200 4,765200
1 1.228.692
1.825215 1,825215
144 15.65R 160.090
149.453 1.194 150.647
12.27' 20 16.852 12.293.972
(7 7.020
12,270::00 23,872 12.293
2,140.287 136,851 2,277,138
39,444,354 10,910,513 50.354,867
41.584.641 11,047.364 52,632.005
17
General
City of Sebastian, Florida
Balance Sheet
Governmental Funds
September 30, 2010
Starmwater
Discretionary Riverfront Transportation Utility
Sales Tax Redevelopment Im rovements Improvements
ASSE'T'S
Cash and cash equivalents 1,357,115 5 108.957 5 194,178 31093
Investments 3,757,222 296.983 276 209,056
.accounts receivables 254,429 3.326
Due from other funds 200,000
Due from alber governments 239,359 198.840
Interest receivable 199 142 55
Inventory 65,728
Prepaid items 86,520
Advance to other funds 200,000 285,000
Total assets 6,160,602 1,3 688,720 494,178 241.119
LIABILITIES AND FUND BAI..A NOES
Liabilities:
Accounts payable 532,006 6;129 5,190 83,678
Me to other governments 15.065
Other deposits held in escrow 1,132
Total liabilities 548,203 6,129 5.190 83.678
Fund balance
Nonspcndaalc 352,248
Restricted 1,3 682,591 488,988 15 7,471
Committed 3,063,585
Assigned 31,656
Unassigned 2.164,910
'total fund balances 5,612,399 1,379.095 682,591 488,988 157,471
Dual liabilities and fund balances 6,160,602 S 1,3'9,095 688,720 494,178 5 241,149
Amounts reported for governmental activities in the statement of net assets an different because:
Capital assets used in governmental. activities are not financial resources. lherelbre, arc not reported in the funds.
Negative net pension obligation resulting from ov crtimding of the police °Slicers' pension plan.
Accrued other post employment and termination benefits are not financial uses, therefore., arc not reported in the funds.
I.ong -term liabilities are not due and payable in the current period and, therefore, are not reported in the funds.
Accrued long tam debt interest expenses arc not financial uses, titer-fora are not reported in the funds.
Net assets of governmental activities
The accompanying notes to financial statements are an integral part of this financial statement.
l8
Other Total
Governmental Governmental
Funds Fund:
3,526,160 6,416,613
2,524,575 7,064,218
257,755
200,000
59,084 497,333
482 1178
65,728
86.520
485,000
6,110,301 15,074,045
61,403
61.403
859,463 1,211,711
5,189,435 7,897,580
3,063
31,656
2,164,910
6.048,898 14.369.442
6.110,301
688,406
15,065
1,132
704.603
42,378,004
165.630
(334.664)
(14,75 7,6941
(236.077)
S 41.584.641
19
REVENIIIS:
Taxes:
Property
Public utility
Sales
Motor fuel
Franchise lees
Licenses and permits
I ntergovcmmrnS
Impact fees
Charges for services
Fines
investment earnings
Contributions and donations
Other revenue
Total reverwes
EXPENDITURES:
Current:
General government
Public safely
Physical environment
Transportation
Economic environment
Culture and recreation
Debt. Serviec
Principal
interest and fiscal charges
Capital outlay
Total expendirures
OTHER FINANCING
SOURCES (USES)
Transfers in
Traansfers out
Debt proceed.
Total other financing sources (uses)
Nct changes in fund halanucs.
Fund balances heginning
Fund balanwr cndin2
City of Sebastian, Florida
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2010
General
S 3,734,398 S
2,437.050
2.328.150
1,228,692
33-182
1,997,119 2,55fi,S72
282,53!1
71;115
127,524 25,465
13,442
145.929
10.071,281 2.353.615
2,699,289
4,932,132
1,196,595
1,080,786
9
105,302
10,991,884
764,888
764,888
1155.715)
5,765,1 14
5 S
Stormwater
Discretionary Rine trout Ti wJspm ration Utility
Sales Tax Redevelopment improvements Improvements
20
1,933
120.419
95)1.676
S 429.730
3,056
3,721
2,993.439
129.352
3
3,225,768
1 :xcess idcf'ickney) of revenues
over (under) expenditures (920,603) 2.353.615 (232
559.446
(2 (69,829)
(69.718)
(302.047)
984,638
1379,095 682.591 S
130.868
130
The accompanying notes to !inanuin] statthncnts are an integral pan of this financial statement.
2,202
2.202
1.1,131
2 ,618.030
2,632,161
(130 (2,629.9591
90,145 1229
(37.596) (522.000)
52,549 707,205
(78.319) (1,922.754)
567.307 2,050,225
488 157,171
Other Total
(instrumental Governmental
Funds FunJs
S 4,164,128
2,437.050
2 ,328,150
595.776 595,716
1,228,692
33,182
18.559 1.572.550
26.000 26,000
872.209 1.15.1.739
19,533 90,948
69.969 228.216
5,887 19,329
149.710
1,607,903 17,028,440
2,699,2W)
6,015 •1.938.147
97 1,2111,823
324,524 1.105.310
129.352
977.780
2,1.12,190 2,142.190
577,593 577.593
238,410 6,189.026
3,288,829 20.269;510
(1,680,926) 13.241.070)
1,842,831 4.486.626
(1.371.579) (4,493,6461
2.162.000 2,162,000
2,933,252 2,454.980
1.252.326 (786,0901
4,796,572 15,155,532
6,048,898 14,369.412
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, 2010
Net change in fund balances total governmental funds
Amount reported f governmental activities in the statement of activities are different
because_
Some interest revenues reported in the statement of activities do not constitute
current financial 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.
Issuance of long debt is recorded as revenue and expense in the governmental
funds, but the proceeds increase long -terns debt liabilities and deferred charges In the
statement of net assets.
Repaym.nt of bond principal. note principal, and capital lease principal are
expenditures in the govemmcntal funds, but the payment reduces long tens
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 finds.
Change in Rd assets of governmental activities 2.1.10,287
The accompanying notes to financial statement arc an integral part of this financial statement.
S (786,090)
(83.784)
3,706.111
(1,391)
(2,362.282)
2,142.203
(471480)
City of Sebastian, Florida
Statement of Net Assets
Proprietary Funds
September 30, 2010
23
Enterpri9G Pu nth
Golf Course Airport Building Tolnls
ASSETS
Current assets:
Cash and cash equivalents 5 9.d 10
.5,27a 175 289,785
Investments 428,:193 428,393
Accounts receivable 34,156 34,456
11ue Itw uti ci gu ceneoeule ;o7,j93 .37,593
Interest rc::eivtkle 2 37 39
Inventory 12,']7 1 2,035 24,152
Prepaid items 9,492 5,fig2 2,142 17,366
15
Total current a.aefa 31,019 1,041 705,724 851,784
Noncurrent amen.:
Capital assets:
Land 9,069 9,060
�uildings :131,228 4.752.002 5,083,230
Improvements other than buildings 271,475 1.670.754 1012,229
.Mxehinny and equipment 321,924 650.989 60,526 1,033,439
lnfrastructutc 1,100,951. 6.377.025 7.477.976
Construction in ptooess 3 3,690
Lcss accumulated depreciation 1,358,631) (2.748.1741 (53,115) (4,159,920)
rota! ,pncurrenl assets 666.917 lU.715.34f, 7,41 l 11,389,704
Total asarla 697,!,66 10,830,38' 713,135 12,211,488
thallium
Current liabilities
Accounts payaalc 27,790 84.673 17,864 130,327
Due to other rinds 200,000 200,000
Advance from other fund 485.000 485,000
Due to other govclmna,ts 5,835 358 6,193
Unearned revenues 62,299 3.792 74,804 140,891
Accrued compensated absences 220 2.056 8,835 t L.1 l l
Total cusren: Liabilities 296,:40 575.879 101503 973,522
Non- current liabi.irics:
Compensated absences 62,563 50833 77,982 191,378
Unfunded OPEB obligation 8,263 13.513 7,448 29,224
Total non- et:tent liabilities 70,226 64.346 85,410 220,602
Total liab.liries 366,966 640.225 186,933 1,194,124
Po F:'1' A SSK'I'S
Invested in cxpi W assets. nut of related debt 666.947 10, 715,346 '7.111 11.3139.704
tInreslrined(deficit) (335,947) (325,184) 518391 (342,349)
Iotal ncl assess E 331.000 S 10,190,162 5 526,202 11,047.364
The accompanying notes to financial statements are ut integral part of this financial statement.
City of Sebastian, Florida
Statement of Revenues, Expenses and Changes in Fund Net Assets
Proprietary Funds
For the Year Ended September 30, 2010
Culrcunrse Airport Building Totals
Operating rennin:
Charges for lives and teals:
Buildingpemtit fees y: 356,264 S 356,264
Golf course fees pledged as
security for revenue bonds 1,297,783 1,297,783
Rents 29344 304.100 333.844
Other revenue 8,120 161,805 172,925
Fetal operating revenues 1,335,647 468,905 356,264 2,160,816
Operating expenses:
Salaries. was and employee benelils 333,105 233,677 375,458 942,210
Contractual services, materials and supplies 933.121 223.049 109,237 1,265,407
1)eprotiatinn 87,910 602,219 12,105 702,264
Total operating expenses 1,351,136 1,058,975 196,800 2.909,911
Operating income (loss) 118,4891 (590,070) (140,536) (749,095)
hbnnperating revenues (expenses):
lnteresl income 4,921 10,737 15,658
Intergovernmental
Guin on disposal or lixcd assets 987 987
Interest cxpcisc (20.125) (8,550) (28,675)
Bond amnrliryion expense (13,897) (13,897)
Total nonoperaling revenues (expenses) (28,114) 18,550) 10.737 (25,927)
incnme+(Inssl before capital contrihulions
ind transfers (46,603) (598,620) (1293991 (775,022)
Transfer in 7.020 7.020
Capital contributions 904853 904,853
Change in net assets (46,603) 313,253 (1293991 136.851
I'ota,nelasets beginning 377.603 9.876.909 656.001 10,910.513
Total net assets— ending S 331,000 10.190,162 526.202 11.047364
The accompanying notes to financial statements are uo integral part of this financial statement.
24
Enterprise Funds
City of Sebastian, Florida
Statement of Cash Flow's
Proprietary Funds
For the Year Ended September 30, 2010
Iraterpri.e Funds
Goff Course Airport Building Totals
CASH FLOWS FROM OPERATING
ACTIV
Cash received from customers and Was 5 L337.499 138.240 344.347 2,120.086
Cash payments to suppliers (966 (160,326) (108,661) (1235,881)
Cash payments for employee services (335.103) (233,837) (383,260) (952.200)
Nei cash provided (used) by upettiting
activities 35 44,07? (147,574) (67,995)
C.4S11 FLOWS FROM NONCAP1TAL
FINANCING ACTIVITIES:
Loan from other fund 200,000 200,000
interest paid on advance from other funds 18,551)) (8.550)
Net cash provided (used) by noncapital
finaming activities 200,0011 (8,550) 191,450
CASH FLOWSFROM CAPITAL. AND
RELATED FINANCING ACTIVITIES:
Acquisition and uonslruGK.n ofcapiial assets (22.499) (1,051,318) (1,073,817)
Receipt from capital grants 923,444 923,444
Receipt from sale of assets 987 98?
Receipt from transfer from other fund 7,1120 7,0211
Principal paid on revenue bond maturities 1300,000) (300,000)
Interctit paid on revenue hods (12,600) (12,6011)
Nei cash provided (used) by capital :mil
related financing activities (334,112) (120,854) (454,966)
('ASII FLOWS FROM INVESTING
ACTIVI'T'IES:
Proceeds from sales and maturities of investments 382,976 382,976
Interest nn investments 4,921 14, 199 19,120
Net cash provided by investing activities 4 921 397.175 102.096
Net increase (decrease) in cash and Cash equivalents (93,689) (85,327) 249,601 70,585
Cash and cash equivalents, (lewber 1
Cash and cash equivalents September 30
103,1199 90.600 25,50 219.200
9,110 5,273 S 275,102 5 289.785
The accompanying notes to Inancial Si demetls arc an integral part of this financial statement,
25
Reconciliation of operating income loss) to
net cash provided (used) by operating activities:
Operating income (low
City et' Sebastian, Florida
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2010
(Continued)
(Increase) Decrease in asset;:
Accounts receivable (34,456)
inventories 931 833
Prepaid expenses 3,698 5,362
Enterprise Funds
Golf Course Airport Building totals
S (18,489) (590,070) (140,536) (749.095)
Adjuslmenls Rt reconcile operating Memel* net
cash provided (used) by operating activiries:
I )eprecialinn expense 117,910 602.249 12.105 702,264
(14
increase (I )ecrea e) in liabilities!
Accounts payable (37758) 57,001 721 19,964
Due to other governments (644) (474) (1
Unearned revenues 1.852 3,792 (11917) (6.273)
Accrued lcrminutionbenefits (6,1711 (6.171)
Accrued compensated absences (2.611) 5.828 4,464 7.681
Accrued 01'11 liability 613 (5.988) (6 (11,470)
Total adjustment 53,991 634,147 (7,038) 681,100
Net cosh provided (used) by upending activities 35.502 44.077 (147,574) (67,995)
Cash and cash etpivalenrs reconciliation:
Current assets:
Cash and cash equivalents 9,4111 5,273 275,102 2119,785
Cash and cash eq,rtvalents ar September 30 9,4111 5,273 275,102 S 289
fhe accompanying notes to financial statements are an integral pzu of this financial statement.
(34,456)
1,764
8;915
ASSETS
Cash and cash equivalenm
Mimes( and dividends receivable
City. of Sebastian, Florida
Statement of Fiduciary Net Assets
Fiduciary Funds
September 30, 2010
27
Pension
Trust Agencg
Police
Officers' Performance
Pension Deposits
692,069 1 L930
30,185
Investments. at fair value:
Local. government surplus truss funds investment pool
Milled States treasuries 399.758
United States agency notes 1,068.413
Uomcslic corporate hands 1,493.858
Municipal tlhligations 101963
lyomeslte corporate equities 3.299,056
Total investments 6.364.048
'total assets 7.086,302
220.000
220,000
231,930
LIABILITIES
Refunds payable 231,930
Tula! liabilities 231.930
NET ASSETS
I lcld in !rust for pension benefits 7,11 %6.302
The accompanying notes to financial simements am an integral pan of this financial stulement.
ADDITIONS
Contributions:
Employer
Plan members
State
DEDUCTIONS
Total contributions
City of Sebastian, Florida
Statement of Changes in Fiduciary Net Assets
Fiduciary Fund Pension Trust
For the Year Ended September 30, 2010
The accnmpanyuig notes to financial statements ate an integral part of this financial statement.
28
s
roICe
Officers'
Pe nsion
566,910
115,421
134,852
817,183
lnvesnnent earnings:
Net increase in fair value of investments 260,719
Interest and dividends 185,647
total investment carvings 446,366
Less investment expenses (37.448)
Net investment earnings 408,918
Total additions 1.226.101
Benefits 119.131
Refunded contributions 10.653
Administrative expenses 10,969
total deductions 140,753
Change in net assets 1,085,348
Net assets -beginning of year 6,000,955
NCI assets end of year 7,086.303
City of Sebastian, Florida
Notes to the Financial Statements
September 30, 2010
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Sebastian (the "City a Florida Municipal t.'orporatibn, was incorporated in 1924 under Sections IS26 -1532 of the Revised
Florida Statutes. The City has a population of 22,922 living in mama of approximately 14.6 square milts. The governing body is a five
rnclnber elected City Council with a mayor elected from Mc five members. 'lire City Council appoints the City Manager who is
responsible for the administration of all City serviees.
The frnamdal statements of the City have been prepared in eonformity 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. Reourtinit Entity
In evaluating the City as a reporting entity, management has included all component urits in accordance with Ciovemmenia]
Accounting Standards Board (GASH) 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 (Ihc primacy government) trod its
hlenced component units. Blended competent units are legally separate organi7ationa for which the City Council is financially
accountable. The component units discusses] below are included in the Cily'a reporting entity.
Blended Component Units
The following component units are blended with the primary government for financial stalemenl purposes because the component
unit's governing body is substantially the same as the City Council or because the component unit exclusively serves he City.
Comaunity Redevelopment Agency (CRA) The govcmting body of the CRA is the Sebastian City. Council. The CRA is aocounlcd
for it a special revenue fund entitled "Itivcrftont Redevelopment F.S. Section 163.3s?(g) requires an independent edit of the fund
each fiscal year and 11 report of such ,'audit. 1 he C.Iy has presented the CRA. as a major ttand of the City to satisfy this Iequiremen1
situp y due to the scope of thc audit for a major fund is broader than a non major fund.
City of Sebastian Police Officers' Pension Plan The City Council only appoints twn of the five members of the governing hoard,.
but it is financially responsible for funding the police officers' pension benefits. The City of Sebuslitm Police Officers Pension Truss
Fund only exists to provide pcnsionbcncfitgto City of Scbaaian police officers. It is accounted foray a Pension Trust fund entitled.
"Police Officers' Pension".
B. Government wide and fund financial statements
I'hc tnvcmmcnt -wide financial statements l Le. the statement of net accts and the statement of changes In nc: assets) report
information on all o r the nonfitluciary activities of the primary gnvernment and its blended component units. For the most part. the
elllec: of interfund activity hiss heat removed from these statements. Grn-p em:ente d activities which normally are supported by taxes
and intergovernmental revenues. are reported separately from business -type activities. which rely to a significant extatl 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 =hided from Ihc goveminent-widt financial slalcmenls. Major individual governmental funds and major individual enterprise
fund: arc reported as separate columns in the fund financial statements.
GASH Statement No. 34 Basic Financial Statements and Maamgement I)iscussion and Analysis fnr State and 1.nca1 Governments sets
Ibrlh minimum crileria (percentage or the assets, liabilities, revenues or expenditures /expenses of eithca fund category or the
governmental and enterprise funds combined) for thc dcterm.nation or major funds. ITe nanrnajnr funds are combined in a column
in the limes financial slalements 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
if accounting, as arc tho proprietary fund and fiduciary fund financial statements. This means that revenues are recorded when
earned and expenses arc recorded when a liability is incurred. regardless of the liming of the related cash !lows. Properly taxes
are recognized as revenues in the year for which they arc levied. Grants and similar items are recognized as revenue as soon as
all eligibility requirements unposed hy the provider have heen met.
In applying the susceptible to accrual' concept to intergovernmental revenues pursuant to GASii Statement No. 33. Accounting
and Financial Reporting for Nonexchange Transactions as amended by GASB Shatement No. 36. Recipient Repo'tingofCertain
Shared Nonexchangc Revenues (the City may at as efflux provider or recipient), the provider should recognize liabilities and
expcnsas and the recipient should recognize receivables and revenue when the applicable eligibility requirements including time
requirements, are met. Resuurccs transmitted belur: the eligibility requirements are MCI should, under must circumstances, he
reported as advances by the provider and deferred revenue hy the recipient.
Private sector standards of accounting and financial reporting issued prior to Ilocembcr I. 1989, generally am followed in both
the government-wide and pruprictary 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 &pain of following
subsequent private sector guidance fur their business -type activities and anterprisc runt subject to this same limitation. The
government has elected not to follow subsequent private -sector guidance.
As a general rule thc 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 arc offset by
program revenues. !)Erect 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, senices, or privileges
provided by a givcn function or segment and 2) grants and contributions that are restricted to meeting the operadmtal or capital
requirem ants 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 apcnses from nonnperaleng items. Operating revenues and expenses
generally result from providing services and producing and delivering goods in eonneetion with a proprietary land's principal
ongoing operations. The principal operating revenues ofthe golf course fund and the building fund arc charges to customers for
services and for the airport fund lease revenue. Operating expenses for enterprise Funds include cost of hales 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; thcrcfarc, it dots not have a measurement focus. However,, it uses the accrual
basis of accounting to recognise receivables and payables.
2. Modified Accrual
Governmental fund financial statements arc reported using the current financial resemrcer nteaatirement,f'cns and the modified
accrual basis of accounting. Revenues are recognized as soon as they arc both measurable and availahlc. Available" means
collectible within thc current period or soon enough thereafter to be used to pay liabilities of the current period. For this
purpose, the (My considers revenues to he availahle if duty are collected within sixty (60) days of the end or the current fiscal
period except grant revenues. The City considers grant mvenucs to be available if they are collected within one year of the end
of the currant fiscal period. All material revenues, except for property taxes, are considered measurable and availahle and are
thus susceptible to accrual. Expenditures am gcncrally recognized under the modified aecmal basis of accounting when the
teated fund liability is incurred, if measurable. An exception to this general rule is principal and interest on general long -term
nbl igalions, which are recognized when due.
Pmperty taxes, public utility taxes. franchise fees. seta: and fuel taxes, licenses, and interest associated with the current fiscal
period are all considered to be susceptible lu [[ecru[! and su have beta recognized as revenues in the currant fiscal period. Only
the portion of special assessments receivable duc within the current fiscal period is considered to be susceptible to accrual as
revenue of the current pain!. All other revenue items art ewnsidcrcd to be measurable and available only when cash is received
by the City.
30
The government reports the following major governmental Thuds:
The general Jknd is the government's primary operating fund. It accounts for all financial resources of the
general government, except those required to he accounted for in another fund.
The discrrnianar y sates sax fiend accounts lbr the financial resources used for infrastructure improvements
and equipment purchases.
The rirerfrnnr redevelnpmem fund accounts for tax increment revenues that are legally restricted for the
redevelopment of the City's rivcrfronl area.
The rransporresion improvennenis tuner accounts for Transportation related consimdion such as. roads.
intersections. and sidewalks and is funded with governmental resources,, impact ices, focal option gas tax, and
state grants.
The storniwamer wilily improvements fiend aeconnts for the resources associated with debt and stormwater
assessment fees for the purpose of constructing stornwatcr related improvements.
The government reports the following major proprietary limds:
The got course. Jm v l ,y:cnunts for the ,activities of rte municipal golf course.
The airport fiend accounts for the activities of the municipality's general aviation airport.
'Mc Mudding fiord accounts for the activities associated with the building permit and inspection program.
Additionally, the government reports the following fund types:
The pension never And accounts for thc activit.cs of thc Police Officers Retirement System, which
accumulates resources for pension benefit payments to qualified police officers.
The perfrtrntuncn deposits frrml acounts for deposits placed by bidders and developers to guarantee
perfumuace pursuant to bid or contract. These arc held by the City as agent for individuals and
businesses.
U. Assets, Liabilities and Fund Eouily
t. Cash and cash eauivalents
Cash and cash equivalents represents all investments Bat are shoe term, highly liquid, and readily convertible to a specified
.:ash value. These investments generally have original maturities of three months or less. Cash equivalents consist of cash in
hanks and on hand.
2. Investments
'nveslmenls consist of U.S. Treasury Securities, U.S. Government Agency Securities,. common stock, guaranteed investment
contracts and the Local Cmvcmment Surplus Funds Trust Fund Investment pool (Pool A and Pool B). The Local Ciovcmmcnt
Surplus Funds Trust Fund is administered by the Flor.da State Board of Administration. which is not a regstnnt with the
Securities and Exchange Commission. 1 Iow•cvcr,, the Board has adopted operating procedures consistent with the requirements
.or a 2a -7limd or accounts in Pool A. In accordance with the regulationsof2a -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 thc State and the fair value of the position in the pool is the same as the value of the pool share. investment
earnings of fool A are allocated to the participating funds at the cnd of each month based upon the ratio of ea_h participant's
:nvestrncot to the tuka1 pooled investments. Investments in the Slate Round of Administration account in Pool B are reported at
:air value and as income and returns of principal become available, they are tnmsfctrcd to Pool A. Other investments, including
thc Police Officers' Pension Fund, are reported at their fair value based on thc quoted market price or the hest available
:nfiumation.
3. I nterfund Receivable% and Payables
During Lite course of operations, transactions occur between individual funds that may result in amounts owed between funds.
Short -term huerfund loans are reported as "due to and from other funds Due to and from other funds are eliminated in the
Statement of Net Assets. As of September 30, 2010, the go]fvoursc fund was loaned 5200,000 from the general fund to cover
the final bond payment. There were no other interfund loans between the Governmental funds and Proprietary !bads.
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 arc not expendable available financial resources.
As of September 30, 2010 thc airport fund has been advanced $200,0011 front the general fund and $285.000 from the
discretionary sales lax rind.
31
4. Receivables
Receivables consist of wade receivables, due from othe governments and interest receivable (see Note lV.C. on page 39 for
detail) and are recorded at the net realizable value. The City, is of September 30, 2010, has nu allowance for dotbdiil account-I,
since all Iecevables are emsldcred uollectible.
5. Inventory and Prcnaid Items
inventory is valued at cost using the average cost method. Inventory in thc Cicncrat fund consists of materials and supplies held
for consumption. The cost is recorded as an expendittreiexpense at the time the individual inventory items arc consumed.
inventoy in the Gulf Course fund consists of supplies held for resale.
Certain payments to vendors reflect costs applicable to future accounting periods and arc recorded as prepare items in both
govcmmcnt -wide and fund financial statements.
6. Restricted Assets
Certain net assets of the City are classified as restricted assets on thc 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 govemmcnts. In a fund with both restricted and Unrestricted ands. da
expenses are considered to he 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), arc reported in the applicable govcmmcntal or business -type activities columns in the
government -wide financial statements. 'I be City define: Capital assets as assets with an initial, individual coa of more than
S750 and an estimated useful life in excess of unt war. Such assets. are recorded at lnstunull vol. a 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 implemeatulion of :ASR Statement 34 were capitalized as projects and were
completed or assets were acquired. Therefore. the initial capitalization of general infrastrliwlure asses was not nee sSalty.
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 40.51) years
System infrastructure 15 -30 years
Improvements othcr than buildings 10-40 years
Machinery. equipment and other 5 -15 years
Airport runways 20 years
8. ContDensated 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 alnaued in thcguvumment -wide
and proprietary. financial. statements. A liability for these amounts is reported in governmental funds only if they have matured.
for example, as a recnlr ofwnpinyrr rrsignatianc and retimments
9. Lone -Term Liabilities
In the guvemment -wide financial statements, and pruprelary 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 us issuance costs, are deferred and
amortized over the lift of the bonds using thc straight -lint method. Bonds payable are recorded net of the alplicahle bond
premium or discount. Bond issuance costs are reported as deferred charges and amortized over the life of the related debt. in
the bend financial statements, govcmmcntal fund types recognize bond premium and discounts as well as debt issuance costs.
during the current period. 'Ilk face amount of debt issued is reported us other financing sources. Premiums received on debt
issuances arc reported as other financing sources while discounts on debt issuances are reported as other financing uses.
issuance costs, whether tar not withheld from the actual debt proceeds Ieceived. are Iported as debt service expenditures.
32
W. Fund Balances
GASB Statement No. 54, Fund Balance Reporting and Governmental Type Definitions is effective for periods beginning alter
.une 15, 2010, with early implementation encouraged. "he city chose to implement it for the year ended September 30, 2010-
11 establishes criteria for classifying fund balances Into specilicuily defined classifications. These classifications are explained
as follows:
.Nrnrpendabte amounts drat ca ur.mt be spelt because they arc either not in spendable form or legally or
contractually required to be maintained inlad.
Restricted amounts where constraints hav: been placed by creditors, grantors, contributors, or laws or
regulations of other governments or imposed by law Through constitutional provisions or enabling
legislation.
Cummings./ amounts that can only he used for specific purposes punwvil to constraints imposed by
funnel action of the government's highest Ind of decision making authority, which is the City Council.
These commitments are established annually by adoption of a financial policies resolution,
Assigned— amounts that are csmstrained by the government's intent to he used for specific purposes, but
are neither restricted nor committed. Thrse consist of deposits from various sources that the City
Manager has directed to be earmarked fur certain purposes.
Unassigned amounts representing linul balance That has not been restricted, committal or assigned to
specific purposes within the general fund and balances in other governmental fund; if any,, exceeding the
amounts restricted, committed or assigned to those 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 limit 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 govcmmcntal funds ($14,369,442) differs from "net assets" of governmental activities
($4I.584,6411 reported in the statement of net assets. This difference primarily results from the long -lens economic focus of the
statement of net assets versus the current financial resources fbcus of the governmental fund balance sheet. 'the effect of the
differences is illustrated below.
Capital related items
Viler. capital assets (property, plant equipment) that arc to be used in the govemmcnml activities arc purchased or constructed, the
cost of those assets are reported as expenditures in governmental funds. 1 lowever, Pio statement of net Assets included those capital
assets among the assets of the City as a whole.
Cost of capital assets 65,392,481
Accumulated depreciation (23,014,477)
Total 42178.004
Net onion oblivation
Whet net pension obligation is a Degatise amount, the mount is presented as an asset on the statement of not assets.
Negative net pension obligation 5 161 610
Other post employment and termination benefits
Avert ed other punt employment and termination benefits are not financial uses, therefore. arc not reported in the fund.
Other post employment benefits (310,541)
'lamination benefits (24323)
Total (334,64)
33
Lime -term debt Iransa Lions
Long -tam liabilities applicable to the City's governmental activities arc not duc and payable in t e 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,
2010 were:
I3onds payable:
infrastructure sales surtax revenue bonds,
Series 2003 $(5,655,000)
Las: Deferred charge for issuance costs 146.198 $(5,508.802)
Infrastructure sales surtax revenue bonds,
Series 2003A (1,325,000)
Less: Dekmed charge for issuance costs 57,191 (1.267,809)
Slonnwater utility revenue bonds,
Saics 2003 (4,055,000)
Less: Deferred charge fur issuance costs 126.975
Less: Deferred charge for bond discouns 9.583 (3;918,442)
Notes payable
Less: Deferred charge fur issuance costs
Deferred charge for refunding costs
Contamination liability
Compensated absences
Total
34
(2414,000)
29.426
(4924 (2 319450)
(91,200)
(1.651.791)
$(1
Accrued interest
Accrued liabilities in the statement of net asses dittos from the amount reported in governmental funds duel() aocrucd intacat on
bonds payable and notes payable.
Bonds (203 !72)
Votes (32405)
Toia1 P36,077)
B. Explanation of Differencex Between the Governmental Fund Statement of Revenues, Expenditures. and Changes
in Fund Balancer and the Government -wide Statement of Activities
'Ihc "nct change in fund balances" for governmental funds (a decrease of $786,0)19) differs from the "charge in net assets' for
governmental activities (an increase of $2 reported in the statement of activil ies. The differences arise primarily from the
Iongaemr economic locus ol the statement of activities versus the current (Mamie] resources locus of the govemmcatal funds. The
cffca of the differences is illustrated below.
!Merest receivables
Some interest carvings reported in the statement of activities tie prior year were reported as revenues in governmental funds.
Capital related items
When capital assets that are to he used in governmernal activities are purehased or constructed, the resources expended fur (hose
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.
In the statement of activities, the gain and loss on the sale and disposal of capital nsiee) are reported. I Iow'ev'er, in the governmental
funds only the proceeds from the sale increase financial resources-
Long -term debt lr nsactioc
Interest eamings S (833841
Capital outlay S 6,189,026
Depreciation expense (2.482.915)
Difference 3306.111
loss on disposal of fixed ,assets II,39I1
Issuance of Tong -term debt is recorded as revenue for the principal received and expense lot the issuance costs in the governmental
funds and, thus. has the effect of increasing fund balanec bxausc of a net increase to cutrcnt financial resources. However, the
proceeds increase long -term dcht and the cxpcnsc is minuted in the statement of net ,assets and do not result in a revenue in the
statement of activities.
increase in long -tram debt
Issuance costs of new debt
(2,462.000)
99.718
(2.3622821
Repayments of bond principal, notes payable principal, and cupital 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. 1 losw•ever, the principal
payments reduce the liabilities in the slalemcnt of net assets and do not result in an expense in the statement of activities.
pond principal payment made 1,005,000
Notes payable principal payment made 1,137,203
'loud 2,141203
Some expenses reported in the statement of activities do not require the use of current financial resources, thcaetbre, arc not reported
as cx,cnditures in governmental funds.
Net change in compensated abstnees
Net accrued bond interest expense
Net accrued notes interest expense
.Annorti ation of issuance costs/discounts
Other post employment benefits
Termination benefits
Net adjustment
35
(405386)
15.627
(28,272
(•17,353)
(6,252)
(2,244)
(47.1:180)
III. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Budgetary Information
Budgets are prepared annually on a modified accrual haais with encumbrance accounting for all governmental funds except the capital
project Funds, which arc approved on a "lire 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 govcmmenl submit requests far appropriations to 1h: 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 alimonies are recorded in
order to resent that portion of the applicable appropriation, is employed as an extension of forma] budgetary integration in the General,
Special Revenue, Debt Service. and Capital Projects funds. Encumbrances outstanding at year and are ca meal forward and reapprnpriated
to the nem y'ear's budget.
Actual results of amnions pnstatted in accordance with U.S. generally accepted accounting principles (GAAP basis) and the City's
accounting policies do not recognize encumhraances as expenditures until the period in which the actual goods or services are received and
]iaabilily is incurred. Ii is necessary to include budgetary encumtranecs to reflect actual revenues and expenditures on a basis consistent
with thc City's legally adopted budget. (Sec page 52 through page 54)
IV. DETAIL NOTES ON ALL FUNDS
A. Deposits
At September 30 2010, the carrying amount of thc City of Scpastian's deposits with banks was $6,715,899 and the bank balance was
$6.7C6.793. Al] the deposits were covered by the FDIC or cuaateralized in accordance with the "Florida Security for Public Deposits
Act Under thc Act every qualified puhlic depository shall &posit with thc Treasurer eligible collateral having a market value equal
to 5D% of the average daily balance for each month ling all public deposits are in excess of any applicable deposit insurance. If the
public deposits exceed the total amount of the regulatory zapital accounts of a bank or the regulatory net worth of a savings
assodation. the required collateral shall have a market value equal to L25% of the deposits.
B. Investments
On April 23 2003, Sebastian City Council fomtally 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 1:mits to protect
City'; cash and investment assets. The City maintains a common cash and investment pool for thc use of all funds Pension Trust
Funds are (held with third parly trustees and are governed by rules esmblished by Florida Stalule Chapter 185.
Investment. holdings during the year included (Ailed Stales Government Agencies which were reported u. fair value in accordance
with GASH Statement No.31 "Accounting and Financial Reporting for Ccnain Investments and for External Investment Pools
These investments were held In trust by the City's bank depository in the City's name.
Section 218.415, Florida Statutes, limits the types of investm that the City can invest in unless specially ,auhorixed 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 Suites Government Securities, 1Jnited Stales Government Agencies, Federal TnsIramentalhlies,
interest Bearing Time Deposit or Saving Accounts. Repurchase Agreements, Commercial Paper. High Grade Corporate Notes,
Bankus' Acceptances, State andfor Local Government Taxable and: or Tax Exempt Debt, Registered Investment Companies (Monty
Market Mutual Funds), and Intergovernmental investment Pool.
Florida Statutes Chapter 185 regulates the types of investmeai that may be held by thc Police Pension Trust Fund. The investment
guidelines have been augmented by City ordinance that haveadopted specific investment policies. Compliance with the policies and
guidelines has been evaluated by the pension hoard.
35
As of September 30, 2010. the City had the following investments and effective duration presented in terms of years:
Investment Maturity (Year)
investment'1'ypc fair Valui 1 css '1han 1 From 1 -i }'mm 4 -6 Over 7
government -wide
Local government surplus find trust
fund investment pool 5.837,453 5,837,453 5 5
Certificate of deposit 1,736,484 1.736,484
7,573.937 7.573,937
Credit Risk
37
Fiduciary !Cods
Local government surplus funds trust
fund ("SBA") 220,000 220.000
United States Treasuries 399,758 204.110 195,648
United States Agencies 1,068,413 174,576 79,319 814,518
ktunicipal Obligations 102.963 102,963
Domestic corporate hander 1;493,858 210,645 754.384 528,829
Domestic corporate equities 3,299,056. 3,299,056
6,584.048 3,519,056 589,331 833,703 1,641,958
Total fair value S 14,157,985 S 11,092,993 S 589,331 833,703 1,641,9511
Interest receivable on the guvcmmcnl -wide and fiduciary investment portfolios amounted to S917 and $30,185, resneclivcly, as of
September 30, 2010.
Interest Rate Risk
The Icity s investment policy 1ilnits interest rate risk by anempting to match investment maturities with known each needs and
anticipated cash Dow requirements. investment maturities shall not exceed thirty -six (36) months. lnvcstmcnts of construction funds
shall have a term appropriate to the need for funds and in accordance with debt covenants.
The City investment pulley permits for investments in the following investments, which arc limited to credit quality ratings from
nationally recognized agencies as callous:
Mutual funds shall be rated "m" or'`AAm -C" or better by Standard Poor's, or the equivalent by another rating agency. State and/or
lncul government taxable and/or lax- exempt debt, general obligation and/or revenue bonds. nand ad least "Au" by Moody's and "AA"
by Standard Pour's for long -term debt, or rated at least MIC -2" by Moody's and 'SP -2" by Standard Poor'. for short -term
debt. Rankers' acceptances issued by a domestic hank or a federally chartered domestic office of a foreign bank. which are eligible
for purchase by the Federal Reserve System at the time of ptrchase, the short-term paper is rated, at a minimum. `Pd" by Moody's
!nv'estnrs Services and "A -1' Standard Poor's. Commercial paper of any United Slates company that is rated, al the time of
purchase. "Prime-1" by Moody's and "A -1" by Standard Pours (prime commercial paper). Corporate nolcs issued by corporations
organized and operating within the United Stales or by depoallory institutions licensed by the United States that have along term debt
rating at the time of purehase, at a minimum "Aa" by Moody's and a minimum long temm debt rating of "AA" by Standard Poor's.
As of September 311 2010, 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, 2010, the city had $6,057,453 invested in the State Board of Administration's Local Government Surplus I'nist
Funds investment fool which consist of accounts in Pool A and Pool li. $5 is in Pool A and $277,613 is in Pool Il. Pool A
had a rating by Standard and Poor's Rating Services as "AAAof" on Seplember 311, 21109 and amounts may be withdrawn without
penalty. Pool B participants nit: prohibited from making withdrawals. Pool .B is not rated by any nationally recognized statistical
rating agency. Additional information regarding the focal Government Surplus Funds Trust Fund may be obtained from the Stale
Board of Administration.
investment in the City's pension trust funds are limited by State Statutes (:halter 185 and by an investment policy adopted by the
find's Board of Trustees on June 24. 2005. The ,allowable investment insitumen s include: United States govcmm:nt and agency
issues, bankers acceptances and certificates of deposit by United States hanks, savings accounts with hanks or other financial
institutions incorporated in the United States and commercial papa rated A -2 or P -2 or higher by Moody's or Standard and Poors. In
addition, common stocks of corporations listed on a recognized national stock exchange, plus issues convertible into common stock
are aim allowed. No more than ten percent (11M of the cost value orlotal assets may be invested in foreign securities.
Custodial Credit Risk
The City's investment policy pursuant to Section 218.415(18). Florida Statutes requires securities, with the exception of certificates
of deposits, shall be held with a third party custodian; and all Securities purchased by, and all collateral obtained by thc City should
he properly designated as an asset of the City. The securities must he held in an account separate and apart from the assets of the
financial institution, .4 thinl party cusodian is defined as any bunk depository chartered by the federal Government, the State of
Morita, or any other state or territory of the United States which has a branch or principal place of business in the Stale of Florida as
defined in Section 658.12, Florida Statutes, or by a national asociation organized and existing under thc laws of the United States
whit: is ,atrlhorii d to accept and execute trusts and whici is doing business in the Stale of Florida. Certificates of deposits
maintained by book -entry at the issuing bank shall clearly identify the City as thc owner.
As of September 30. 2010, the City's investment portfolio was held with a third party custodian as required by the City's investment
polity.
Concentration of Credit Risk
The City's investment policy has established asset allocation and issuer limits on the following investments, which are designed to
Leduce concentration of credit risk oflheCily's inves4nen1 portfolio.
A mttuimum of 100% of available funds may be invested in the SBA and in the l:nited Slates Government Scarifies. 501/4 of
available funds may he invested in United States Gwcmmcvt agencies with a 25:3, limit on individual issuers, RO% of available
funds may he invested in federal Instrumentalities with a 40% limit on individual issuers. 25 %ofavailable funds maybe invested in
non negotiable interest hearing time certificates of deposits with a 15% limits an individual issuers, 50% of available funds may he
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 1 0% limit on individual
issuers, 15% of available funds may he directly invested in eorpnnts notes with a 51 limit on individual issuers. 25.4 of available
funds may be directly invested in Bankers' Acceptances with a 1 0% limit on individual issuers, 20% of availablc funds may be
invested in taxable and tax- exempt debts 50% of available thuds may he invested in money market mutual fund with a 25% limit on
individual issuras. of available funds may be invested in itlergovathmcntal investment pools.
The City's pension trust funds investment policy adopted by the fund's Board of Trustees has catablishtxl asset allocation and issuer
limits on the following investments, which arc designed to fneus on performance. A maximum of 100% of available funds may he
inveskd in fixed income securities and a maximum of 50% of available funds may be invested in equity securities.
.45 of Seplember 30. 201(1, the City had the following issuer concentration based on fair value:
Issuer
Inca! governmentsugtlus funds trust
fund "SBA
United Slates Treasuries
linked Stales Agencies
Municipal O b l i gat) km s
I :ertifnale of deposit
Ilomcaic corporate bonds
Domestic corporate aluitits
Total
Amount
5 5,8.37.453
Coven menl -wide
Percentage of
Portfolio
1,736.484
S 7,573,937
38
Amount
22.93%
Fldnn}ry
77.07% 220,000
399.758
1,068
102,163
1,49.3,858
3,299.056
100.00% 6,5l$4,O4R
121
Percentage el
Portfolio
3.3444
6.07?(%
16.23%
I.56%
(1.004,
22.ri5'%
50.1 trio
100.0 OA
C. Receivable and Payable Balances
Receivables
Receivables at September 311, 2010 welt as follows:
Due From
interest Accniuttc Other
Receivable Receivable Ciovenunattc Total
Cinv'a'nmental activities:
General 199 254,429 239,359 193,987
Disadlnnary sales tax 142 198,890 199,032
Riv a redevelopment 55 3,326 3.381
Otter governmental 482 59084 59,566
Tottal govemmentalactivities 878 257.755 497,333 S 75$966
Business -t; pe aaivitiea:
Almon 2 34,456 57,593 S 92,051
Building 37 37
Total business- typeactivitits 39 31,156 57,593 S 92.088
All receivables an anticipated to he collected.
Accounts Payable and Other Current Liabilities
Amounts at September 30, 2010 were as fill locos:
Salaries Due to
and Other
Vendors 13enetits Government Total
Governmental activities:
General 118.760 383,216 15.065 517,071
Riverfront redevelopment 6.129 6,129
Transportation improvements 5.190 5,190
%c rtwatcr utility improvements 83.678 83,678
Other governmental 61.103 61,103
Total govemmanalactiv'ities 305.160 383,2.16 15 .065 703,171
Business -type activities:
Golf course 1 1,944 15,846 5 835 33,625
Aino t 74,548 10,125 358 85,031
Building 753. 17,111 17,864
Total business- ty'peactivities 87,245 43,082 6,193 136,520
Governmental funds repent defend revenue in connection xith receivables for revenues that an not considered to be available to
liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resnnrocs that have
been received. but not yet earned. Al September 311, 2010, there was 21,132 reported as unearned revenues.
39
D. Capital Assets
Capit.1 asset activity. for the year ended September 30, 2010 seas as follows:
Guvtrnmenla 1 adivities:
Capital assets. nal being depreciated:
Lind
Cnnanution in progress
Total capital assets, not Iting depreciated
Capital assets. being depreciated:
Buildings
[mpravcmcnta olhcx that buildings
Machinery and equipment
intiaaructure
Total capital assts being depreciated
Lass accumulated depreciation for:
Buildings
Impravements other than buildings
Machinery and equipment
In fratructwe
Total accumulated depreciation
Total capital asst; b:ingdgarcciaa.1, net
()ovammrntal activities capital assds,, net
Business-type activities:
Ctipiiad assets, nut being depreciated:
Land
Construction in proves
Total capital assets. not beingdcpra:iatal
Cupiial assets, beingdepretaalal:
Buildings
lmprovcments other than buildings
Machinery and aluipmau
Inliadrudtuc
'ibis] capital assets being depreciated
Less aocwtui laved dcp:mdarion for:
Buildings
improvements other than buildings
Mechi nen• and equipment
Infradntvtu e
Total awumultaed depreciation
Total capital assets, Ix in g dcprcd atcd, net
Business -type activities capital assns, na
Beginning
Balm=
5,699,045
3,958.97
9,658.016
11.289,488
5304,686
7.789,213
25.125.625
49,899,012
(2 470,647)
(1 907,223)
(6,006,364)
(10,299,510)
(20.883,744)
29.015,268
38.673 284
Beginning
Behind:
40
lnaraso
2,308,392
676.247 (3,684,074)
2984,639 (3,684,074
787,843 (10,6201
50,935 (17,075)
282,778 (324,928)
5;766.905 (950)
6188,461 (353,573)
(386,986)
(2R3.266)
(634,3.71)
(1.177.722)
(2.482,915)
4,405,546
7.390 l85
ha-casts
Decreases
9,361
17.046
32.4,928
847
352,182
(1.391)
13,685.465)
Decreases
Ending
Iiplentx
8,017,437
951,144
8,958
12.061.711
5,73 8,546
7.712,'i63
30.891 580
56,433,900
(3 .048,272)
(2.174,043
(6,315,777)
(11,476.385)
(23,014.477)
33.419,423
42.378004
Ending
Balancer
9,060 9,060
207,059 3,690 (207.059) 3,690
216,119 3,690 (207.059) 12,750
5,082,120 1,110 5,083,230
1.940,103 8,241 (6,115) 1.942,229
1,062,333 27,660 (56.554) 1,033,439
6.237.799 1.2.0.177 7 .077.
14,322,355 1,277.188 (62,669) 15536174
(607,730) (143,460) (751,190)
(469A (122,14 6) 6.778 (584,841)
(667,835) (119.350) 56,554 (730.6311
(1,775,285) (317,973) (2.093,258)
3,520,323) (702,929) 63.332 4,159,920)
10,802,032 574,259 663 11,376,954
11,018,151 5 577,94 9 206 396 8 11389
Depreciation expense was charged to functions+ +programs of tie government as follows;
Guvemmcnlul activities:
General government
Public safety
'transportation
Physical environment
Economic environment
Cultural and recreation
Tota. depreciation expense governmental activities
Busi less -type activities:
kd r :ourse
Airport
Building
Tuta: depreciation expense- business-type activities
Construction Commitments
The City has various construction commitments outstanding at September 30, 20
Project Spent -lo -dace
Hardee Park Improvements 14,295
Schism= Park Improvements 142,653
Sp[ash Park Canopy
Skate Park ORice 15 .525
T'owerlinc Road 152,133
512 Corridor Improvements 23,9R9
2010 Paving Note improvements 13.026
Other Paring Improvements 8.336
Sidcwalkiliikcpath Program 54,1.11
Middle Stnnccrop improvements 191.862
11/4 Round Swale Rehabilitation 1.654.139
I'oto nee !toad grossing 34
Airport Access Road 937,899
E. Advances
41
Remaining
Commitment
35,7115
61,807
50,000
34A75
1,0119,117
255,539
1.237,435
81,219
4,888
190,439
43 -581
90.'190
52,187
Total 3,242.498 S 3,146,882
Advaice balances at September 30, 2010 consisted of the following amounts:
Advanct from (3areral land to 1hcAirpurl Lund
Advance: Item Discretionary Sales Tax Fund to the AGpurt Fund
Iota]
267,412
526,240
615.551
703,098
6;533
364,081
2,482,915
87,910
602,249
12,11)5
702,264
10. The maiwr commitments include the following:
S 200.000
Major
Funding Swam
Recreation Impact Fees
Recreation lmpaal Foes
Recreation Impact Fees
Recreation Impact Fees
Contribution; and DST Discrtinnary Sales Tax)
DST (Discretionary Sales Tax)
LO(.iT (Local Option (.ius Tax)
.or.: 1' f l.oual option Gas'I'axl
LOOT (Local Option Gas Tax)
Stotmwatex Fres
DST (Discretionary Sales Tax)
DSI'(Discretionary Sales lax)
Grant and Airport Funds
285,000
S 485,000
The balance ur$285,0D0 advanced to the airport fund from the discretionary sales tax fund is to be repaid over a thin year period in
accordance with Resolution No. 1C- 08.20. The balance of $26{),000 advanced to the airport from general fund tepresetls a cash loan
made in 2007 without any specified terms for repayment:
F. Iuterfnud Trausfers
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 lhem lu be expended in, and 2) utilize discretiuraaly sales tax revenues for infrastructure improvements and
equipment purchases which must be accounted for in other funds Following is a schedule of into Transfers:
Transfer Out:
Diseretiw,i, V SLurm'tilter NuMWjor
Sales Tax Riverfont TranspeltaLimr Utilily Governmental
FransEers In. read Redcvcle meta hn moments hn revements rends Toter!
Genmsl runvl S E0.000 5 744,888 S. 764,888
Discutimaary Side Tax punll 37 446 522,040 559,446
RiveCronl Red 1. 11 111
Transportation lmprovc 90.145 44.145
Sterrwater l :Lilicy lmprnvcnacros 1,14x218 80;187 1,229,205
Nonnajor Governmental Funds 1,344424 9.819 39 488,539 1842811
Airport 7,02U 7,020
Total Transfers /tut
G. Leases
1. Operating Leases- Lessee
2. Oneratine Leases- Lessor
2 .492.62 e9,829 S
37,5'X' 522,011) 1371,579 5 4,49 1,040
The City is obligated under certain leases for land and golf carts accounted for as upending leases. Operating laves Jo not give rise
to praperty rights or lease obligations. Total cosm for such leases were $197.873 for the fiscal year ended September 30, 2010.
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 regain-A under operating kaaes in the. Golf Course Proprietary fund that have
initia or remaining noncancclable lease terms in excess of one year as of September 30, 2010:
Golfcotaae
Ctolf
Year F.ndiine Scptanhcr.30. to Air part Carts
2011 13 5,000 62.935
2012 13 5,000 62.935
21113 135,1100 1611,890
2014 135,000
2015 13 5,000
Totals 675,1)00 286.760
The City is the lessor in Iwo communication tower leases with lease tcnns of up lo filly -live years. The tows is have a cost of 139.285
and a carrying value of $6,810. For fiscal year 2010, total depreciation expense for the !cased tower is $1,865. Following is a
schedule by year ofminimum future rental income on noneaneelable operating leases:
Governmental
Year Ending Seplemhor 30. Activities
2011 62,182
2012 66.326
2013 67.611
2014 69,008
2015 70,430
2016-2020 389,374
2021 2025 355,004
2026 -20;0 389.161
2031.2035 455,917
2036.2040 537,202
2041 -2045 636,061
2046 -2050 756,338
2051 2055 902,674
Total minimum future rentals S 4,757,348
42
The airport is the lessor of various properties (land with a cosl basis of S9,060) with lease terms varying from twenty to thirty years:
These include the lease to the Gulf Course Proprietary Fund requiring annual payments of $135,000 Through 2015, Fallowing is a
schcculc by year of minimum future rental income on noncan:clablc operating leases:
Business -type
Year Endive Scnt snhcr30 Activities
2011 713,071
21)12 416,964
2013 420,957
2014 425,051
2015 414,3 19
2016 -2020 798,779
2021 -2025 829,535
2026 -2030 689,987
2031 -2035 620,284
Total minimum future rentals 5,028,947
H. Lone -term Oblieations
1. Revenue Bonds/Notes
tevenue hondslnotes are secured by and payable from the revenues of the respective funds that issued them.
a. The City entered into a twelve (12) year loan agreement in 2010 with a local bank for $2,462,000 to provide financing to
repave certain roads in the City and payoff an outstanding loan. The City pledged Local Option Gas Tax and Municipal
Gas I'ax tn repay the note payable. The funds are accumulated in the Local Option Gas 'fax Special Revenue fund for
repayment of principal and interest.
h. the City issued a fifteen (15) year, $9,500,000 Infrastructure Sales Surma Revenue Bonds, Series 2003 in April 2003. [he
City has pledged Infrastructure Sales Surlux revenues for repayment of principal and interest.
r. The City issued a filtean (15) year, P- 175000 In1'raslrue1ure Sal...; Surtax Revenue. [lands, SP.ries 74103A in 11enembet
2003. The City has pledged Infrastructure Sales Sutter revenues for repayment of principal and intcrest-
J- The City issued a nineteen (19) year, $5.630.000 Slunnwalcr 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
the City has covenanted in the Stnrmwatcr Utility Revenue Bonds. Series 2003 Bond Resolution to fix, cstablisl, maintain and
collect scornnvater fees, and revise the crate from time to time whenever necessary, so as to always provide in each fiscal year
stonnwatcr fcc revenues and investment earnings equal to at least one hundred thirty -five percent E 135% of the annual debt
scn ice becoming duc in each fiscal year.
The following table indicates thc degree of compliance with the bond resolution covenants in thc stonnwatcr utility fund al
September 311, 2010.
Grass revenues availatte far compliance S 858,664
Debi servict rcquiremcnu S 417.185
Yemeni. coverage fir the year
ended Seplember 30.2009 196%
43
3. Chances in Lone-terns Liabilities
"he following is a summary ot'changes in Long- Perm Liabilities of the City for the year ended September 30, 2010:
B ginning Ending Due within
Balance .Additions Reductions Ralanez One Year
Governmental activities:
Bonds payable:
lneraslmcturc Sales Surtax Revenue
Rends. Series 2003 S 6.2 S 600,000 S 5.655.000 S 620.000
Infrastructure Sales Surtax Revenue
Ronds. Series 2003A 1 470.000 145,000 1325,000 145.000
timnnwatcr 1 adity Revenue Rands,
Serics 2003 4,31.5,010 260.000 a 0551100 270
1 cssdcfcrrcd ammo.
Issuance discou Swnnwster Utility Remo:
nandn Series 2003 (10,416) (833) (9583)
Inral hnnds poyahle 12029.584 1,004,167 11,025,417 1
Notes ;dyable 1.089,203 2 1,137,203 2,414,000 168
Coutpelsated absences 1.245,805 850341 444.755 1,651,791 199_249
Unfnnd:d OPFR Ublieabon 304280 6,253 310.541
Tcmtimtinn txncfitc 21,879 2,244 24.123 13
Pnllunca Rcmcdiation liability 91,200 91,200
Govnmmenlal activity
lung -term liabilities 14,781,959 3321,238 2586.125 15.517.072 1415,713
Beginning ;tiding fin: within
Ralanee Additions Reductions Balance One Year
Buainew -type aefivihc%:
Bonds payable:
Rcucnlional Facitilica Improvement and
R:fimdinet Revenue Rands, Series 2001 300.000 300,000
less dcfenad amount:
Issuance premium 796 796
Loss on refunding (8,320) (8
Total bonds payable 292,416 292
C•ompelsaled absences 194,807 61,831 65.260 191.378 11,111
Unfund:d OPF.R obl teal ion 40.694 11.470 29.224
'rcmtinntion txnctitc 6,171 6,171
Business -typo nutnun•
Jute -lean liabilities .534,148 61,831 S 375.371 220.602 11,111
For ltc governmental activities, compensated absences are generally liquidated by the general fund.
A pollution remedialian obligation was recorded for a Florida Depa runenl of Environmental (FDF.P) Order dated March 10, 1997.
This was relived to an incident of petroleum contamination a1 the Public Works Department on April 22. 1991. The City was named
R5 the party responsible for the cleanup but FDEP determined the discharge is eligible under the Petroleum Cleanup Participation
1'mgrvn and will not compel site rehabilitation prior to funding becoming available from that program. 111e pmgrlm has a funding
cap of $400,0(0, with a 25'14, required cost share percentage. The City must also pay for n limiled contamination nssnssmenl report
sufficient to determine the email of like contamination and cleanup. Based on the information available. the City estimated its
expenditure to be $91,200 dependent on the extent of work that k eventually required and recorded a long -term liability of $91,200.
44
4. Debt Service Requirements to Maturity
he annual requitement In amortise all bonded debt outstanding at September 30, 2010, including interest requirements, is as
follows:
Ciavanmcntal Activities
Roadway Inn:4mc1ure InfwsUucture Storm water
!mum emem SalesSwlax SaleaSw lax Utility
Note Revenue Bards, Revenue Uurvas. Revenue !Sands,
Focal Payable Series 2003 Scrim 2UO3A Sams 20U3
Year 4.01% Interest 2 %to4.12S% 'Interest 2:' to 45' IntcreSt 2%tn45% 'Intact[
2U1 1 S 168 S 96 S 620,000 S 303,816 145.000 48;788 S 270,000 169.089
2012 176.00n 89,792 44.5011 181,828 159 43,531 280900 159,248
2013 182,000 82.335 665,000 158.243 155,0 37906 290 -000 148.048
2014 190.000 74.855 690,000 133.160 164000 31,800 305 1 34448
2U15 198.000 67. 715,000 106.646 170,000 25,200 315.000 125.010
201(x2020 1,118,00n 296958 2,.320,0n1 143,743 .545,001 .33.1 n0 1,775900 423
2021 -2023 382.000 15.647 820.000 55 -800
S 2,414,000 S 632,799 5,655,014) S W7,445 I325A00 220,325 4.0551100 S 1,216,978
1. Restricted Assets:
Certain cash and claims to cash, that are legally restricted, have been shown as restricted in the statement of net assets as follows:
(iovermen lal
Activities
Debt service 5 1 737.605
Capital 3,422.728
Cemetery perpetual care 859,463
Other expenditures 2, ?37.247
Total 5 8, ?57.013
The guvernment statement of net assets reports $8 of restricted net assets, of which all are within governmental
aclivilics and are restricted by constraints placed by creditors. grantors. contributors, or laws or regulations of other governments or
imposed by law through constitutional provisions or enabling' legislation.
Fund Balances:
The balance sheet for goveroment funds presents fund balances M. specifically defined classifications, which are dela:led as follows:
Nonspendahle:
Inventory 65,728
Prepaid items 86,520
Advance to uther funds 200,000
Permanent fiends 859,463
761x1 S 1:211,711
Restricted:
Debt service funds 1,737,605
Special revenue funds 5222952
Capital project funds 937,323
Total 7.89 7,.SRO
Committed:
Working uupital 2.613,585
T?mereency scn7ces reserve 330,000
Properly uusualay ulainm 100,000
lots! 3,063,585
Assigned:
General employee events S 4,900
Law enfor✓ meat events 2,693
(freer donations for police 24,063.
Total 31,656
Innis-signed:
General fluid residual 2,464,910
45
Alter expenditures are incurred for purposes for which other classified amounts could be used. the City considers restricted amounts
are used first. followed by committed, that assigned, and that unassigned.
Nonsxndahle amounts cmmol be spent because they are not in spendable form.
Restrcted amounts include balanocs in the debt strike. special revenue and capital project funds that must be used in accordance
with constraints placed by coeditors, grantors or other governments.
Committed amounts consist of items specified in a financial policies resolution that is adopted annually by the City Council that are
lu be set aside in the general fund. The financial policies state that 25%4)1 fund expenditures will be for working capital. In
addition, it says an emergency services reserve will be maintaned to ensure continue operations of programs should a natural disaster
or significant changes in the weather pattern occur. Furthermore, it says a prupert ricasualty claims amount will be set aside for
deductibles incurred on claims not covered by insurance policies. Changes to these commitments would have to he made with
:mother resolution.
Assigned amounts more specific purposes are established by circction of the City Manager, who k accountable to the City Council to
provide proper accounting of all transactions.
Unassigned amounts is the residual classification for the general fund bun may also include a negative fund balance in other
governmental funds caused by an excess of amounts restricted, committed. or assigned to those purposes.
V. OTHER INFORMATION
Prooertv Tax
The IaIy is permitted by Stale law to levy taxes up to 1D lulls on assessed valuation. The millage rate levied by the City for the
fiscal year ended September 30, 2010. was 3.3456 mills. Total tax collections were approximately 95.8% of the total tax levy.
The Six levy of the Cay 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 'fax Collector. Ad Valorem taxes are levied on
property values as of January I. The fiscal year for which taxes am levied begins October I. Taxes arc due November I and become
delinquent on April I. All taxes unpaid as of May .10 arc subject to a tax certificate sale. Property tax revenues are reeogni2cd in thc
fiscal year our which they are levied and also become due and payable.
111. Grants from Other Governmental Units
Federal, State and local government grants represent an important source of supplementary funding used to finance infrastructure,
recreation, law enfrreernenl. and environmental activities beneficial lo the cornrtlunity. These grants are recorded 'n the General,
Special Revenue, Capital Project, and Enterprise funds. A gram 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 he used and are subject to audit by the grantor agency or its representative.
The tollowing is the amount of grant revenue for fiscal year 2010.
C. Police Pension Plan Defined 1leneli%
46
Amou n1
Public sa S 37,052
Transportation 18.559
Fiwnomic cnvimnmemt 2556.872
Airport 904,853
Total reporting entity S 3,517,336
Plan l)escriprion, The Pol ice Officers' Pension ]'hat Is a Florida Smlure Chapter 185 single defined heat plan. Only
City police officers participate in the Police Pension Plan. The state provides a contribution m the Police Pension Plan through a
distribution of funds collecled from insurance premiums taxes. Ilse Pension plan dale provided in these Financial Statements are from
thc actuarial valuation as of October I, 2008 to determine the required contribution for the fiscal year ending September 30, 2010.
Although the Police (Micas' 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 October l 2008 actuarial valuation is as follows;
Retirees and beneficiaries currently receiving benefits
Terminated employees entitled to refund of employee
Contribution but nun yet received
Fully partially, and non vested active plan participants
Total
Bangle Provisions and Conerrhntiun tiegaiixmanes. The Police Officers' Pension Plan provides retirement and disability benefits In
plan members and beneficiaries. This Plan is administered by a separate local Beard of Trustees. Chapter 185 Florida Statutes as
amended governs all benefit provisions nfthe Plan. Contribution requirements, in accordance with Chapter 185, Florida Sonnies, am
established by City ordinance, as provided in Chapter 58, Article III uf thc Sebastan City Code. The City Council has the authority
to amend funding requirements.
Frending Policy. The employer, employee, and Scace contribution requirements are applicable to the Plan and actuarially de:entuned
on a frequency of at least every 3 years in accordance with Florida Slate Stalin. Administration costs or the pension plan are
financed by the Plan. For the 2009 -2010 fiscal year, the employee oonrribution rare, expressed as a percentage of compensation, was
5.0% and Ike employer cordributiun raft was 24.7%, The employer contribution amounted to $566.910. The State contribution was
$134,852, which represents state shared revenue that is levied on property and casualty insurance premiums and collected by the
State. The Slate curttribution was recognized and recorded in the general fund and the corresponding expenditure was tucardcd as
public safety expenditure. Tire City is required to connrihure the remaining amounI to ensure that the Plain is actuarially sound_
Annual pension costs and related inromial,ou provided for disclosure in the October 1, 2010 actuarial valuation was as follows:
Contribution rates as of 9130 +1e:
City
Plan members
Annual pension cost
Contributions outdo
Valuation date
Achrxrixl con incmod
Amonivaficm method
Remaining amortization period
Asset valuation method
Actuaii al assumption 5:
investment rate of realm
Prujecied salary increase
lndudes inflation at
Post retirement COLA
24.7%
S 567.146
S 566.910
101 1:2008
Frozen Entry Age
Level Percentage of Pay. Closed
24 Years in or 10. (011200S)
Market Value
Required trend information for the Police Officers' Pension Plan was as follows:
Actuarially Percentage Net
Year Required or Pension
Ending Contribution Contributed Obligation
47
4
38
9/3192010 S 567 L00% (141,337)
9130/2009 5 419.6:7 96% 1146,254)
9 +30 +2008 S 334,1 :R 113".• (163,630)
The annual required contribution for tic Police Officers' Pension flan was determined as part of the October 1, 2008, actuarial
valuation using the aggregate actuarial cost melhnd. This method dues not identity 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 r ifla:ion at 3
Reserves. All oflhe net assets of the Police Pension Plan are legally reserved fore an participant benefits.
Basis of Accounting. Financial statements am prepared using the accrual basis of accuuulirlg. Plan member coulributinns are
recogniled in the period in which the cantrrhutionc are due. Employer contributions are recognized when due, and the employer has
made formal commitment to provide the contributions. Benefits and refunds arc recognized when Clue and payable in accordance
with the tents of the Plan.
Method Used zo Vallee lnucxemenn and Concentration grinvesnnenrs. 1nvcstmcnts are repotted ar fair value. Short germ investments
am reported at cost, which approximates fair value. Securities traded on a nalranal or inlemafiunul exchange are valued al the last
reported sales price at current exchange rates- Mortgages am valued on the basis of future principal and interest payments. and are
discounted al prevailing interest rotes for similar instruments. Investments that do not have an established market are reported at
estimated fair value. 'Investments in seccritics of a single organization (excluding mutual funds and those issued or guaranteed by the
C.S. government) held by the pension pfart dill not exceed five pers :ent urtlee total plan assets.
Development of Net Pension Obligation (NPO)
this municipal 1)cfincd benefit flan has been subject to the minimum funding standards since thc adoption of the 'Florida Protection
of Pm:blic Employee Retirement Benefit Act' (Part VII of Chapter 112, Florida Statutes) in 1980. Accordingly, tic sponsor has
funded the actuarially determined required contributions For all years from Ocluber 1, 1987. through the Iransilion dale, October 1.
1997. Thus, the NPO nn October 1. 1997, is SO.
'the cevelnpmeut of the Net Pension Obligation as provided for disclosure by thc actuary is as follows:
9130. ?007 9/30/2008 9r+0./2009 9/3912010
Actuviaay Determined Contrtbulion (A) 289.390 S 334,128 S 419,657 S 567.146
Interne on NPO 1.9.7531 (9,948) (13,250) (1 1.700)
Adjurtmunt to (A) 12.454 11,314 17,073 16.380
Mauxl Penaiwt Cuts 292.091 335.494 423,480 571.825
Contributions muds 294.534 376.769 404,104 566.910
Incase in NPO i2.413J 141275) 19,376 4.916
NPO reginnine of year (121912) (1243551 (165,630) (146.254)
NPO end etyear (124.3551 S (165.6301 S (146,254) S (141.338)
Multi -year trcnd information abort whether the actuarial value of plan asset: is increasing or decreasing relative in the actuarial
auerued liability for benefits Wier time is presented in the required supplemental information section on page 56.
D. CWA ITU Negotiated Pension Plan Defined Benefit Plan
Plan lkscriprinn: The CW.4111 l Negotiated Pension Plan ('11 which began 111 1967, is a multi -employer, defined benefit plan.
The Plan is available to any Commtmiealiun Workers of America (CWA) bargainine unit member, and benefits are po:tvble from one
contributing employer to another.
Normal Pension: Minimum age 65: 5 years of Scrvicc Credit required if any portion of service credit was camcd after January I.
1989. 10 years of Service Credit required if employee'/ coverage eroded before January 1, 1989. Orpe lit Stoke OuIil Jammu 11
accrued, the employee is vested and cannot lose the right to a pension.
Early Pension: Minimum age 60: 20 years of Scrvicc Credit required if employed after January I, 1989. 25 years of Service Credit
requixd ifemploymerd ended before January 1, 1993. Pension amounts are permanently reduced based on age on the effective date,
hecatse the payments arc expected to be made for a longer period of time.
Disability Pension: No minimum age and the pension autount is not reduced for age; then: must be a Social Security Disability
Award, 10 years of actual Service Credit and a contribution fir covered employment must have been made within five calendar years
preceding the entitlement date to Social Security Disability Pension_ An application must he 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 Benoit: If the employee is in receipt ea. Social Security Disability Award and is vested. but rxil immediately
eligible to receive any pension dcsmibed above. the employee may be eligible for a lump sum equal to Mat contributions credited on
the employees behalf (or 36 times the Normal Pension amount, if greater. lf the employee is immediately eligible fur 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: lf the employee dies before becoming a pensioner and has al lease x250 contributed on the employees' behalf. a lump
sum death benefit equal to total contributions credited on theemployeeY behalf or 36 times the Normal Pension amount if greater,
will he paid to employees' beneficiary. If the employee is married at the bone of death, the spouse will have the choice of a Iump sum
or a mmnhly survivor benefit.
Withdrawal Benefit: If the employee did not can enough Scrvicc Credit m qualify for a Normal Pension, the employee may be
eligible fora lump stun withdrawal benefit, based on loud contributions, alien11te employee has incurred a break in scrviuc.
Benefit Prmtians and C'onrrihurron Requin'nenrsr 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 arc established
by the CWA contract, effective dale October 1. 2006. which to negottaled every 3 years, and approved by City Council.
Funce g• Policy: Administration costs of the pension plan are financed by the pltm. rho employer contribution rate. expressed as a
percentage of compensation, was 9.00% for the 2009-2010 fiscal ycar. Employees do not contribute to this plan. Contributions m thc
CWA Pension Plan for the fiscal years ended September 30, 2008. 2009 and 2010 were $241,718, 5254,997, and 5234.219
respoaivcly, which arc equal to 100% of the required contribution for each year.
4g
E, 401 Plan Defined Contribution Plan
Plan Deseripiion• The 1CMA Retirement Corporation's 401 Retkement Plan is a Defined Contribution Plan qualified" under
Section 401(a) of the Intcmal 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 aoccpts 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 I raditional IRA.
1.ump Sum: Retirement benefits an paid either partially or by total distribution of the employees' account balance.
Annuities: Retirement benefits can be utilized to purchase an annuity.
Benefit Provisions orui C'oruriduiion Requirements: The 401 provides retirement benefits 10 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
/•muting Policy: Administration costs ofthe pension plan sue finanoed by the Plan- The employer contribution rate, expressed as a
wattage of compensation. was 9 -00% for the 2009 -2010 (seal year. Employees do not cunitibute to this Plan. Contributions to
the 431 Defined Contribution Ilan for the fiscal years ended September 30 2008, 2009, and 2010 were 5145 $152,078, and
$126.377 respectively. which arc equal to 100% of the required contribution for each year,
F. Other Post Employment Benefits (OPEB)
Purstanl to Section 1I2.0E01, Florida Statutes, the City is requited to permit participation in the health insuranoe prograa.n by retirees
and their eligible dependents at a coal to the retiree that is no greater than the cost at which coverage is available for active
employees- line City. by policy, has elected to provide qualified retirees with partial subsidy. In this respect, the ity operates a
single employer plan.
Employees are eligible to receive benefits from the Retires Medical Plan upon retirement if they are enrolled in the active medlar]
plan immediately prior to retiring and achieved at least 20 years of service in a full rime capacity. the City pays 51$4 of the costs of
single coverage group hctlllh iruuranCC for up 10 2 years alley •elircmenl- No retirees are eurrcrflly receiving medical benefits.
Rased on GASI1 Statement 43 and 45, which set forth the gu defines for treatment of Other Post Employment Benefits, the City had
an actuary ealculate future funding requirements in 2007. The actuary's 2007 estimate- using the Projected [(nit Credit Method.
prodtced an unfunded obligation of $281,842 and an annual required contribution of $40,089. The City elected to and the f }PN-R
obligation on a pay -as- you -go basis. The attire unfunded obligation was recognized in the gove:mment -wide financial statements.
The enterprise fund portion ($33 was also recognized is the enterprise fund financial statements- As such, a separate audited
GAAP basis pustomploymenl benefit plan report i3 not available. In 2008 tad 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. The City had an
actuay calculate the OPF.R obligation for 2010 and recognized a reduction in the government -wide obligation of $5,217. The
enterprise fund portion was calculated as a decrease of $1I,470. The actuarial assumptions included the following:
Amrniaatiorr period Open, level percentage of compensation over a 30 year period.
Rciirvntent age for aeaye employees Rased on historical average.
,Ifariality RP -2000 Combined Mortality Table projected to 2010.
Turnover— Historical data by age.
Healthcare cost trend rate nine percent (9%) in 2010, decreasing to five percent (5%) in 2017.
Health insurarwe premiums Actual 2010 premiums were used to calculate the values of benefits to be paid.
Payroll growth rate —three portent (3 per year.
Ltttaiian rate three percent (314d per year.
Interest nee— lour percent (4 nite of return on invested assets, to reflect the long -term expectation of investment realms.
49
The deltxminmion of the Net Other frost Employment Benefit obligation (OPER) is as follows;
G. Termination Benefits
A- 'Insurance
J. Grants
9:30:2008
Annual required contribution 5 40.049 S 40,089 5 26357
interest on Net OYL•D oh6yaron 13,799
.Adinsurnnl to annual required contribution (13.182)
.annual OPFB noir 40.089 40,089 27.174
l.css assumed contributions 9,146 7,892 32,39;
increase (decrease) in net OPF33 obligation 30,943 32,197 (5,217)
Nei OPED obligation hcginning of year 281.842 312,785 344,
Nei OPBB obligation end of year 312.785 S 344,982 319,765
Percentage of annual OPC13eost contributed 23% 20% 119%
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 line capacity and within three years of reaching the age of 65 (the age eligible for Medicare benefit). The benefits
include a one time lump auto payment based nn 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 51.000 for each full year of service. The group health itsumnce
will terminate When the retiree reaches the age of 65 and eligible far Medicare benefits. As of September 30, 2010, the total accmcd
termination benefits for the govemmcrt.widc financial statements were $24,123. No portion of the accmcd tcmtinalion benefits
related to the enterprise funds.
The City is exposed to various risks of loss related to forty; [heel of or damage to and destruction of assets; emirs and omissions; and
natural disasters. The City purchases oxluncrcial insurance with various dcductiolcs for different types of losses. 1'he cost of this
insurance is accounted fur in the gcnersl funt golf course fund. airpurl fund, am building fund. Settled claims have not exceeded
this commercial coverage In the past three fiscal years.
t.itinatinn
Various suits and claims are currently pending against the City. 11 is impossible for the City to accurately quantify the exposure
involved given the jury's latitude in assessing compensatory and punitive damages, and the coat's latitude in awarding atomcy's
ices. The City intends to vigorously Jerald against these lawsuits and believes it has a good chance ofprevuiling on their meths.
The City is contingently liable with respect w lawsuits and other claims incidenal w 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 nor have a material adverse
effect on the financial position of the City.
Amounts received or receivable from grantor agencies are subject to audit and acjustinent by grantor agencies. if any expenditures
were disallowed as a result of these audits, the claims for reimbursement to the glamor agency would become a liability of :he City.
In the opinion of management, any such adjustments would not be significant.
50
9/30/2009 9130 :2010
Required Supplemental Information
51
City of Sebastian, Florida
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
General Fund
For the fear Ended September 30, 2010
Actual Variance with
Budget Amounts Arnuunts uo Final Budget
a Budgetary Positive
Original Final Basis (Negative)
REVENUES:
Taxes:
I'rnperty 5 3.704,546 3 5 1734,398 S 29,852
Public utility 2,4 2.474.668 2,437,050 137,618)
Frunchiae lees 1.352,216 1.352 _16 1,228,692 023,524)
529)
Licenses and permits 51.400 51.100 33,182 (18.218)
intergovernmental 1.694,776 1.857,957 1997,119 1.19,162
Charges for services 289,147 289.147 282,530 (6417)
Fines 55,000 55.000 7l 415 16:415
investment earnings 220,8$10 2211.000 127,524 (92,476}
Contributions and donations 24,350 24.350 13,442 (10.908)
Other revenue 178.840 178,840 145.929 (32.911)
'total revenue: 10,044,943 10,208,124 10,071.281 (136,843}
EXPENDITURES:
Current:
General government 2,820,407 2.820,407 2,717,290 103.
Public safety 4.647,459 4.959.722 4,968.154 (8.442)
Physical environment 1,309,392 1.309,392 1,198.164 111,228
'transportation 1.1110,399 1,1 00.399 1,125,1167 (24.4i683
Culture and recreation 1,016,195 1.016.195 98.1,199 12.996
Thud. expawi.ures 10.893,852 ll?r 15 1(991.88 214.231
Excess (deficiency) of revenues
over (under) expenditures (841,9091 i997.991) (920.603) 77,388
OTHER FINANCING SOURCES
'transfers in 764.888 764,888 764.888
'tonal other Iirancing Sources 76 *1,838 764,0118 761,8811
Netchangel in fund balances 314,021} {233.1111) (155,715) 77,.188
Fund balances beginning 5763,114 5.708.114 5.76x
Fund balances ending 5 5,684,093 S 5.535,011 S 5,612,399 77..188
Thu accompanying notes to required supplemenhuy information ate an integral part of this schedule.
52
City of Sebastian, Florida
Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual
Discretionary Sales Tax Special Revenue Fund
For the Year Ended September 30, 2010
.Actual Variance with
Budget Amounts .Amounts nn lethal Budget
a Budgetary Positive
Original Final n: +sir (Negative)
REVENUES:
'taxes:
Sales S 2.461/00D 2,460,000 2,328,150 (131.850)
lnveslmcnl earnings 50.445 50,445 25,465 (24,9X0)
Total revenues 2,510,445 2,510,445 2,353,615 4156,8301
OTHER FINANCING: SOURCES (USES)
Transfers in 484.554 484,554 559,446 74,892
Transfers ud (2.883.210) a.883,210) (2,492,642) 390,568
Total other financing sources (uses) (2,398,656) (2.398,656) (1,933,196 465,460
Nei changes in fund balances 111.789 111,789 420,419 308.630
rand balances beginning 958,676 958,676 958,676
Fund batmen. ending 1,0711,465 .S 1.070.465 1379,095 308,6311
1 he accompanying notes to required supplemental} 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, 2010
Actual Variance with
Budge( Amounts Amounts nn Final Budget
Budgetary Positive
Original Final Basis (Negative)
REVENUES:
Taxes:
Property 437.768 437.768 429,730 (8.038)
intergovernmental 2,556,872 2,556,872
Inveslmentturnings 2,767 2,767 3,056 289
Oilier revenac. 3381 3.781
I'olal. revenues 440.535 440,535 2.993.439 2,552.904
EXPENDITURES:
Comm
Economicemitonollenl 692.638 692,638 3.225368 (2,533,130)
Total expenditures 692,638 692,638 3.225.768 (2,533,13111
Excess of avenues over
over expenhitures (254113) (252,103) (232.329) 19,774
OTHER FINANCING SO(RC.FS t1TSFS)
Transfers in 111 111
Transfers on: (69,830) (69,830) (69.829) 1
Total mho financing sources (uses) (69,830) (69,830) (69,718) 112
Nel changes in find balances (321.933) (321,933) 1302.047) 19,886
Fund balances beginning 984,638 984,638 984,638
Fund balances ending 662,705 S 662.705 S 682.591 19,886
The accompanying notes to required supplementary information are an integral part of this schedule.
54
A. Budtetary Basis
B. Bud2eiary Information
City of Sebastian, Florida
Notes to the Required Supplementary information 'Budget Comparisons
September 30, 2010
Annual budgets are adopted for all governmental f 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 inconformity
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. Shifts in appropriations
within fund totals may be done on the authority of the City Manager. Transfers of appropriations between fends require
approval of the City Council. The legal level of budgetary control (i.e., the level at which expenditures may not legally
exceed appropriations made by the City Council) is the fund level. The City Council made four supplementary
budgetary appropriations throughout the year. The 1" quarter budget amendment highlighted an increase of 5715,923 to
cover transfers for unfinished capital projects that were carried forward front the prior fiscal year. The 2 quarter budget
amendment highlighted an increase of $2,349,006 related to the pay off of the fanner bank note and to establish
appropriations necessary for the new bank note. The 3 quarter budget amendment made adjustments of $30,036 to a
couple of capital projects. The 4`'' quarter budget amendment highlighted an increase of $283,934 to the amounts
budgeted for payment to the Police Officers' Pension Fund.
C Budgeted Expenditures Exceeded Revenues
Budgeted expenditures exceeded revenues in the general fund, riverfront redevelopment special revenue fund and the
local option gas tax special revenue fund. However, this is pursuant to the legally adopted budget to expend available
fund cq.iity (cash carry forward) and does not constitute a deficit.
55
.1, a
I
City of Sebastian, Florida
REQUIRED SUPPLEMENTARN INFORMATION
police Officers' Pension Plan
Governmental Accounting Standards Board Statements No. 25 and 27, I
and Acentrntine for Pensinns by St and Local Governmental Employers
require supplementary information be reported on the local pension plans in addition to that provided in the Notes to the
Financial Statements. This information, as amended by Statement No. 50, is presented in the following schedules:
SCHEDULE OF FUNDING PROGRESS
Actuarial
Accrued UAAL as
Actuarial Liability Unfunded a %of
Actuarial Value of (AAL) AM. Funded Covered Coverof
Valuation Assets Entry Age (UAAL) Ratio Payroll Pa)rol
Date iai (b) (c) (aeb) S ((b•a)/c)
10/1/2010 S 7,086 5 7,824,780 738,478 90.56% 2,313;473 31.92%
10!12008 5,4 74,816 6.127,531 652,715 89.35% 2.143,131 30.46%
10,12006 4311,294 5,389,815 678,521 87.41% 1,769,613 38.34%
10/1/2004 3.536,724 4,251,736. 715,012 83.189 1,480,974 48.28%
10 /1/2002 2.616,301 3,336,111 719,810 7$. 1,184.967 4035%
SCHEDULE OF CONTRIBUTIONS FROM THE. EMPLOYER
AND OTHER C0NTRIBVTINO BNT1TI0
Annual
Fiscal Required City State Percentage
Year Contributions Contribution Contribution Contributed
2010 S 701.998 566.910 5 134,852 99.97%
2009 557,139 404,104 137.782 97.21%
2008 456..928 376,769 122,800 109.33%
2007 407.011 294.534. 117.621 101.26%
200h 360.922 219495 117,621 93.52%
2005 330.257 240.166 117,621 108.34%
Other Post Employment Benefits (OPER)
Governmental Accounting Standards Board Statements No. 43 and 45, Revorlintfor POS(emolovment Benefit Plans Other Than
Pension Plans and Aeennntino and Finan R ennrtinu b y Fmnlpy fnr Pnstemp(0v Henefits Ot her Than Pensions.
establishes accounting and reporting requirements for state and local government employers that provide OPEB. This
information is presented in the following schedule:
SCHEDULE OF FUNDING PROGRESS
Actuarial
Actuarial Accrued Unfunded
Value Ot Liability AAL Funded
Fiscal Assets (AM.) (114AI Ratio
Year (al Ili) (c) (a1
2010 5 306,554 S 306,554 0.00%
2009 377.118 377,118 0.0096.
2008 343,587 343,587 0.00%
SCHEDULE OF CONTRIBUTIONS PROM THE EMPLOYER
Annual
Fiscal Required City Percentage
Year Contributions Contribution Contributed
2010 26,557 26,557 100.00%
2009 40,089 40,089 100.00%
2008 4009 40,089 1 00.00%
Note: The City has elected to fund the OPEB on a pay -as- you -go basis.
Nonmajor Governmental Funds
57
Special Revenue Funds
Special revenue funds arc 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 fuc] 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 ate 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 io 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'acquisi'ion and construction of major capital facilities other than
those financed by proprietary funds.
Genera] 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 Irnprovements Fund This fund accounts for the resources associated with debt for the purpose
of constnrctiog 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 he 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
City of Sebastian, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2010
Special Revenue Funds
Lora 1 Law
Option Recrca Lion Storms ater Entu item ent
Gas 'Tax Impact Fee Utility Forfeiture
Total
ASSETS
Cash and cash equivalenls .9 468,309 855366 (34,744) 24,744 1,313,6
investments 917,252 2511,829 612,760 4$.769 1,829,610
Due from other governments 48,162 10,922 59,084
!Maas! receivable 130 115 3 248
Tot 1,433,853 1,106,310 588,938 73,516 3.202,617
LIABILITIES AND FUND BALANCES
1.iahililies:
Accounts payable 41.198 97 356
'foal liubdilics 41,198 97 356
Fund balances:
Nonspcndablc
Resuicled
Comrnilled
Assigned
Unassigned
Total fund balances
60
1,392,655
1,106,310
588.841
41,,51
41,651
73.160 3,160966
1,392,655 1,106,310 588,841 73,160 3,160,966
Ta liabilities :aid Rind balances 1,433,853 1,106,310 S 588.938 73,516 S 3,202,617
Debt Service Funds
Sturmwnier Discretionary
Utility Sales Surtax
Revenue Revenue
Bonds 2003 Bonds 20113 Total
182.931 5 1,554462 1.737393
20 192 212
182,951
182
1.554,654 1,737.605
1,554,654
1,737,6115
182,951 1,554,654 1.737.605
182.951 1,554.654 1,737,605
61
Total assets
LIABILITIES AND FUND BALANCES
LiltbiliUea:
Accounts payable
Total liabilities
City of Sebastian, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2010
(Continued)
Capital Projects Funds
General
Capital Capital
Projects Improvements Total Cem ctery
ASSETS
Cash and cash equivalents S 4,167 305,049 S 309,216 S 165,876
Invesirnents 694,965
Due from other governments
InLerestreceivable 22
4, 167 305,049 309,216 860,863
4,167 14.185
1,167 14,185
Fund balances:
Nons cndable
Rcstreled 290,864 290,864
Committed
Assigncd
Unassigned
foal turd balances
62
Permanent
Fu ud
1835 1,4 00
5.352 1.400
859,463
290,864 290,864 859,463
Total liabilities and fund balances .5 9.167 .5 305,019 309.216 S 860,863
1'nre
Other
Gnvcrnmentai
u nAS
3.526.160
2 .524,575
59.084
482
6,110,301
61,403
61.403
859,463
5,189,435
6,018,898
5 6,110301
b3
City of Sebastian, Florida
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2010
REVENUES::
Taxes:
Motor foci 595.746
intergovemmenlal 18.559
Impact fees 26,000
Charges for services
Fines
Special assessments
investment earnings 4,287 12.256
Contributions and donations
Other revenue
Total revenues
EXPENDITURES;
Current:
Public safety
Physical cm::immnent
Transportation
Debt Service:
Principal
Interest and .iscal charges
Capital owl lay
Total eapcnclilures 1,581.484
OTHER FINANCING
SOURCES (USES)
Transfers in
Transfers but
Debt proceeds
Total other financing sources (uses)
Net changes in fund balances
Fund balances beginning
Fund balances ending
1 otal
Option Recreation
Gas Tax Impact Fee
618.592 38,256
324.524
1.137.190
119,770
Excess (deficiency) of revenues
ova (under) expenditures (962,892) 38256
(189.032)
2.462,000
2.272,968
1.310.076
82.579
64
39
(19.338)
Special Revenue Funds
Stormwater
Utility
819,859
38.806
S
858665
97
858,568
(1,057,208)
(19.299) (1,057,208)
18.957 (198,640)
1,087,353 787,481
1.392,655 1,106.310 S 588.841
Law
Enforcement
Forfeiture
595.746
18,559
26.000
819,859
19,533
155 55,504
5.887 5,887
19,533
25,575
6,015
97 6.015 1,587.596
19,5611
19,560
53.6(10
73,160
Total
1,541,088
6,015
97
324.529
1.137,190
1I9.770
06
39
(1.265.578)
2,462.000
1,196,961
1,199:953
2,111,013
3,160,966
Debt service Funds
Srormwater Discretionary
I1fi lity Sales Surtax
Revenue Revenue
Rfinds 2003 Bonds 2003 'Total
s
455 7,03g 7,493
455 7,038 7,493
260,000 745,000 1,005,000
178.360 279,463 457,823
438.360 1.024,463 1,462,823
1437,9051 (1,017,425) (1,455,3301
4762 1,162,586 1,638,807
476.221 1./62,586 1,638,K07
38,316 145,161 183.477
144,635 1,409,493 1,554,128
182.951 5 1,554.654 1,737,605
65
City of Sebastian, Florida
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2010
(Continued)
Capital Projects Funds
Permanent
Fund
General
Capital Capital
Projects Improvements Total Cemetery
REVENUES:
Motor fuel S S
Fntcrgovernmenta.
Impact Ices
Charges for services 52.35(1
Fines
Special assessments
Investment earnings 6.972
Contributions and donazions
Other kevenue
Total revenues 59.322
RXPCND1T(IRE.S:
Current:
Public satin
Physical environment
Transportation
Uchl Service:
Principal
interesl and fiy:al churges
Capital outlay 181,838 56572 238,410
Tolle expenditures 181.838 56.572 238,410
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING
SOURCES (USES)
Transfers in
'I'ranstcrs out
Debt proceeds
Total other lin,'rlcing Sources (uses)
Net changes in fund balances
Fund balances- beginning
Fund balances- ending
(I81.838) (56372) (238,410) 59.322
181.838 22.147 203,985
(76,113) (76,113) (29.888)
181,838 (53.966) 127,872 (29,888)
(110,538) (110,5381 29.434
401,402 401,402 830,1129
290.864 S 290,864 859.463
66
Total
Other
Governmental
Funds
595.746
18.559
26.0011
$72,209
19.533
69.969
5.887
1,607.903
6.015
97
324
2 ,142.190
577.593
2311,4111
3,288.829
1.6*W,926)
1,842.831
0,371.579)
2 ,462.000
2 ,933,252
1,252.326
•,796,572
6.048.898
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, 2010
REVENUES:
68
Actual Variance with
Amounts on Final Budget
Final a Budgetary Positive
Budget Basis (Negative)
Motor fuel taxes 676,500 595,746 (30.754)
intergovernmental 19,523 18,559 (964)
investment earnings 3,983 4,287 (4,696)
Total rvcnues 705,006 618,592 (86,414)
EXPENDITURES:
Current:
'lrarspoitation 324,100 324,524 (424)
Ikht service:
Principal 1,137,190 1,137,190
Interest and Iiscal charges 119.770 119.770
Total expenditures 1,581,060 1,581,454 (424)
Excess of revenues over expenditures (376,1154) (962.892) (86
OTFIF.R FINANCING SOURCES (USES)
'Transfers out (1.475.451) (1S9.032) 1286.429
Ocht proceeds 2,462,000 2,462,000
Total ocher financing wturccs (uses) 986,539 2,272,968 1486,429
Net Ranges in fund balances 110,485 1,310,076 1.199.591
Fundbalances beginning 32,579 82,579
Fund balances aiding b 193,064 1,392,655 1.199,591
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, 2010
Actual Variance with
Amorous on Filial Redgct
Final a Budgetary Positive
Budget Basis (Negative)
REVENUES:
impact tees 1 53,480 26.000 S (27,480)
Investment earnings 2,767 12 9,489
Total revenues 56,247 313,2s6 (17,991)
EXPENDITURES:
:UMW
Culture Culture and rccmation
Total expenditures
hxcessnf revenues over expenditures 56,247 38.256 (17,991)
OTHER FINANCING (USES)
Transfers in 39 39
Transfers not 090,088) (19,33g} 170,750
'Intel other financing (uses) (190.(188) (19,2991 170.789
Net-changes in fund balances (133,841) 18.957 152,798
Fund balances beginning 1 1,087,353
fund balances- ending S 953,512 R 1,106,310 S 152.798
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, 2019
REVENUES:
Charges for services 850.000 819,859 (30.141)
lnvcs[mcnt millings 27,344 38.806 11.462
Total revenues 877 858,665 (18679
EXPENDITURES:
('urtenl;
Physical environment 100 97 3
Total expenditures 100 97 3
Facets oFre•enues over expenditures 877,244 85.8568 (18.676)
OTHER FINANCING (USES)
TransIbrsta
Total other financing (uses)
Net changes in fund balances
I'urnd balances beginning
Fund balances ending
787 787,481
1
645.497 588.841 t56.656)
70
,Actual Variance with
Amounts on Filial Budget
Final a Hudgctary Positive
Budget Basis (Negativel
(I,019,228) (I ,f157.2118) (37.980)
(1,019,22s) 1,057,208) (37.980)
(141.984) (198.640) (56.656)
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 311, 211111
.Actual Variance with
Amounts on Final Budget
Final a Budgetary Pusit.ve
Budget Basis (Negative)
R EVEN l:F:s:
Fines 8,0110 19.533 11,533
investment earning; 200 155 (45)
Contribu:ions 2,000 5$I7 3,887
Other tcscnues
Tutal revenues 10,200 25.575 15,375
EXPENDITURES:
Curtert:
Public safety
Total expenditures
Fund balances beginning
Fund balances- ending
3,179 4015 (2,836)
3,179 6.015 (2,836)
Excess of revenues over expenditures 7,021 19,5611 12,539
53,6191 53,600
5 60.621 73,160 S 12,539
71
City of Sebastian, Florida
Schedule of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual
Stornnvater Utility Revenue Bonds 2003 Debt Service Fund
For the Year Ended September 30, 2010
REVENUES:
Investinenl earoiogs
T ela1 revenues
EXPENDITURES:
Dcbt service:
Principal 260.000 260,000
Interecl and fiscal charges 178,360 178,360
Tonal expenditures 438 438,360
Deficiency of revenues under expendilures (438.240) (437.905) 335
07'111 +.R FINANCING SOURCES
Transfers in 438240
Total other financing sources 438.240
Net charges in fund balances
Fund balances beginning
72
Actual Variance with
Amount. on Final Sudget
Final a Budgetary Positive
Budget Basis (Negative)
120 5 455 335
120 455 335
476.221
476.221
144.635 144,635
37,981
37,981
38,316 38,316
Fund balances ending 144.635 182.951 S 38,316
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, 2010
Actual Variance with
Amounts on Final Budget
Final a Budgetary Positive
Budget Basis (Negative)
REVENUES:
Investment earnings 1,000 7,038 6.038
'lotal reveiues 1,0110 7.038 (1,038
EXPF.NDIT(:RF.S:
Debt service:
Principal 745,000 745,000
Interest and fiscal charges 291,569 279,463 12,106
Total expenditures 1.036,569 1.024.463 12.106
Deficiency of revenues under expenditures (1.035.569) (1,017,425) 18.144
OTHER FINANCING SOURCES
Transfers in 1,035.869 1.162.586 126.717
'1 otal other financing sources 1.035,869 1.162,586 126,717
Nei changes in fund balances 3110 145.161 144,861
Fund balances beginning 1.409.493 1,409,493
Fund balances ending 1,409.793 1.554.654 5 144,861
73
ASSETS
Cash and cash equivalents
Investments at lair 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, 2010
74
Balance Balance
October 1, September 30,
2009 Additions Deletions 2010
S 12,760 5,000 5,830 S 11,930
220,00(1 220,000
232,760 S 5,000 5,830 231,930
232,760 5,000 5,830 S 231,930
232,760 5,000 5,830 231,930
Governmental Funds capital assets:
City of Sebastian, Florida
Capital Assets Used in the Operation of Governmental Funds
Comparative Schedule By Source
September 30, 2010
FY 2009 FY 2010
Land 5,699,045 8,007,437
Buildings and structures 11,284,488 12.061.711
Improvement other than huildings 5.704,686 5.738,546
Machinery and equipment 7,784,213 7,742,063
Infiastrucatre 25,125,625 30,891,580
C:apilal projects 3,958,971 951,144
Total capital assets 59,557,028 65,392,481
investment in Governmental Funds capital assets by sources:
Federal giants 3,062,044 5,140,108
State grants 907,755 907,755
County grants 713,359 713.359
General fund 11,552,446 1 1,296,100
Law enforcernent trust fund 61,068 49,883
Recreational impact fee 1,179,319 1,203,687
Slonnwaler utility f� 387,153 4,880,968
Rivertion: Redevelopment 1,097,069 1,675,466
Cemetery trust fund 237A79 236,479
Donations 3,159.873 3.165,873
Sales taxes 11,911.948 12,844,066
Motor fuel taxes 5,591,4 l4 5,590,464
Revenue bond debt 15,737,l30 15,737,130
Capital projects 3958.971 951.143
Total investment in capital assets 59.557,028 65,392,481
75
Function and Activity
General government:
Legislative
City manager
City clerk
Finance
MIS
Facilities maintenance
Growth management
Non departmental
Subtotal
Public safety:
Special operations
Administration
School resour.e
Road patrol
Community policing
Codc enforcement
Professional Stnd.
Investigations
Support servites
Communications
Building department
Subtotal
Transportation:
Engineering
Central garage
Roads and dr..inage
Subtotal
Economic Environment:
Non departmental
Subtotal
Physical Environment:
5tomiwater
Cemetery
Subtotal
C: u Itu re.+ +'Recreation:
Paths and recreation
Subtotal
Total
Construction in progress
Total
City of Sebastian, Florida
Capital Assets Used in the Operation of Governmental Funds
Schedule by Function and Activity
September 30, 2010
htnrovements
Outer than
Land Buildings Buildings
S 1,100
3,634,769
3,634,769
9.560
47,125
47.125
272.190
272,190
5,841
133.430
85,555
6.184.990
6.409.816
3,347,152 89,320
1,700
16,404
9,560 3,347,152 107,424
130,489
162,044
292,533
2,308,392 784,000
2,308,392 784,000
82,0 19
82,019
76
53,131
15.665
126,636
196,532
82,419
970,637
1,053,056
1.850
78,354
80,204
1,735,401 1,146,191 4,301,330
1,735,401 1,146,191 4,301,330
S 8,007,437 12,061,711 5,738,546
Machinery
and
Equipment Infrastructure
7.131
1,612
134.766
55,306
353,756
68.250
38,268
204.374
863,463
176.393
282,962
69.943
2,313,919
42.139
32,600
19,025
240.353
59,026
209,808
51.838
3,498,006
1,088
143,456
1,100,000
1,244,544
1,478,551
56.809
1,535,360
S
52,700
52,700
674
13,112,037
13,112,711
16.106,109
22,717
16,128,826
600,690 1,597,343
600,690 1,597,343
7,742,063 30,891580
Totals
8,231
1,612
134,766
55306
412,728
217.345
123,823
10,203,469
11,157,280
176,393
3.728,994
69,943
2,313.919
42,139
32,600
19,025
242,053
59,026
226
51,838
6,962,142
1,088
357.038
15,3 91.843
15,749,969
3,092,3 92
3,092,392
17,586,510
512,089
18,098599
9,380,955
9,380,955
64,441,337
951,144
S 65,392,481
Function and ..Activity
City of Sebastian, Florida
Capital Assets Used in the Operation of Governmental Funds
Schedule of Changes By Function and Activity
September 30, 2010
Govcrnmcnlal Govcnuncnlal
Funds Funds
Capital Assets 'Transfers Transfers Capital Assets
October 1. 2009 Additions Ueletiuns In Oul Se timber 30, 2010
General government
Legislative 5 3,986 784 5 3,161 S 8.231
City manager 2,1126 1,214 1.612
City clerk 136.974 2.208 134.766
City attorney 599 599
Finance 55,306 55.306
MIS 125,721 17.217 7,906 280.558 2,862 412,728
E'acililies rnainienance 218,295 930 217.345
Growth management 135,739 11,916 123.823
Nnn-fepamnerlal 10354,554 551,085 10.203.169
Subtotal 11,434.000 18,001 23,244 284,019 553.396 11,157.280
Public Safety:
Special operations 176,393 176.393
Administration 3,728,994 3.728
School resource 71,469 1,526 69
Road patrol 2.392,531 153,527 232,139 2.313.919
Communitypu:icing 95,917 53.778 42,139
Cudc cnCurccan:n l 34,302 1,702 32,600
PtuCessional Stad. 19,025 19.025
Investigations 182,360 63,986 4.293 212.053
Suppurl services 59.877 851 59,026
Communications 228.059 1.847 226,21?
Building deparoneni 51,838 51,838
Subtotal 7,040365 217.513 285 10.219 6.962,142
Trnn spurltdiun:
Engineering 2,216 1,128 1,088
Central garage 346,403 12,000 1,365 357,038
Roads and drainage 15;157,776 68,143 15,717 160,1881 811 15,369,391
Subtotal 15;506,395 80,143 15,717 160 3,304 15,727,517
Economic 1 ?nvironrne 1
Non.dcpanmcntal 3,092,392 3.092,392
Subtotal 3.092,392 3.092,392
Physical Einvimn ment:
Stomiwatcr 11,872.323 5.714,187
Candy). 5
Subtotal 12.384 5,714.187
77
17,586,510
512.089
111,098,599
Culture Recreation:
Parks and recreation 9 74,617 28,695 125,000 9
Subtotal 9 74,617 28,695 125,000 9
Total 55,598.057 9 353,573 569,019 569,019 64
Construction in pruuress 3,958.971 676,247 3;684,074 951,144
Total S 59,557,028 9.873.100 5 4.037.647 S 569,019 569 65.392;481
CITY OF
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 salts tax.
Debi 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 infiastrueture 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
CiASI3 Statement 34 in 2091; 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 13y Component
Last Ten Fiscal Years
(accrual basis of accounting)
3010
2009 2008
Governmental Activities
Invested in Capital Assets, Net of Related Debt S 28,938,587 26, 744.896 5 24,133,550
Restricted 8,757,043 8,197,018 9,215,801
Unrestricted 3.889,011 4,502,440 5,035,184
Total Governmental Activities Net Assets 41,584,641 39,444,354 38,384,535
Business -Type Activities
Invested in Capital Assets, Net of Related Debt S 11,389304 10,725.676 5 9.111,251
Restricted 98,320 570.149
Unrestricted (deficit) (342,340) 86,517 753,076
"Total Business -Type Activities .Wet Assets 11,047.364 S 10,910,513 10,434,476
Primary govemmcnt
Invested in Capital Assets. Net of Related Debt 40,328.291 37,470,572 33,244,801
Restricted 8,757,043 8,295,338 9,785,950
Unrestricted 3,546,671 4,588.957 5,788.260
Total Primary Government Nei Assets 52,632.005 50,354,867 48,819,011
n; The large increases in unrestricted net assets from 2003 to 2004 and from 2004 to 2005 are tnainly due to increase
in State revenue sharing. sales and use taxes, and tax revenues
t" The large increase in unrestricted ncL assets from 2005 to 2006 is mainly due to increase in tax revenues, franchise
tees, and interest earnings.
80
2007 2006 2005 2004 2003 2002 2001
S 21,469,456 1 17,579,683 8 17,103,399 16,4:2,401 16,339,222 8 14,242,832 S 12,778,007
9,419,129 5,068,583 5,395;879 4,059,674 3,235,266 3,289.670 2,270,654
5,249,998 11.293,877 9,081,345 7,1 5,461,224 5.865,388 5,417,630
36,138.583 33,942,143 31,580,623 27,643,198 25.035,712 23,397,890 S 20,466,291
8,895,501 8,798,612 7.459,945 S 4,264,961 1.545,867 363.827 S 150,722
570, 890 560,581 574,105 506,006 505,435 458,014 640.973
1,303,886 1.896,539 738,519 1,712,657 1,471,457 1,120,224 985.863
S 10,770277 11,255,732 8.772,569 S 6,483,624 3,522,759 1,942,065 1.777,558
S 30,364957 26.378,295 S 24.563,344 S 20,677,362 17.885,089 S 14,606.659 S 12.928,729
9,990.019 5,629,164 5,969,984 4,565,680 3.740,701 3,747,684 2,911.627
6,553,884 13,190,416 9,819,864 8,883,780 6,932,681 6,985,612 E,403,493
S 46,908,860 45,197,875 40.353,192 34.126,822 S 28,558,471 25,339,955 22,243,849
81
Program Revenues
Ciovemmertal Activities:
Charges for Services:
General Government
Public Safety
Physical Environment
Economic Environment
CulturaLRecreation
Operating Grants and Contributions
Capital Grants and Contributions
Total Governmental A ctivities Program Revenuer
Business -Type Activities:
Charges for Services:
Golf Course
Airport
Building'
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 Safely
Physical Environment
Transportation
Econon is Environment
C ultural•'Recreation
Interest and Fiscal Charges
Total GovernmentalActivilles Expenses
Business -Type Activities:
Golf Course
Airport
Building (L)
Total Business -7ype Aelir•ities Expenses
City of Sebastian, Florida
Changes in NM Assels
Last Ten Fiscal Years
(accrual basis ofaccounring)
82
2010
203,915
118,368
881.338
62,046
210,050
3,178,618
4,654,335
1,335,647
468,698
356,264
004,1353
3,065,462
S 7,719,797 6,945,526 S 5,850,640
S 3.309,381
5,720,933
1,947,605
1.863,551
135,885
1;240,383
566,419
14.784,148
1.388,158
1,067,525
496,800
2,952,483
20
S 2
95,606
908,829
66,540
228,902
1,865,174
3.
1,406,956
438,485
358,947
1,356,914
3,561,302
3.169,851
5
1,347,771
3,437,724
167,470
1,073,249
739.100
15,346,750
1,477,299
1,079,869
533,641
3,999,809
2008
353,836
85.009
903,285
83,378
786,016
835,607
3.047,131
The builfing operation was reclassified from being part of Ite general fund operation to an enterprise fund
operation al the beginning of fiscal year 2006.
1,438,233
523,989
347,189
494,098
2 ,893,509-
S 3,375,178
5,226,512
1,895,755
2,111,360
113,101
1,429,734
63c,891
14,687,531
1,488,472
1,099.653
605,422
3,193,547
Total Primary Government Expenses 1 17,736,631 18,437,559 17,881,078
2007 2006
422,897 S 533,482
92, 653 140,545
891,021 887,819
85145 72,472
192,06 407,898
1,014,481 1,301,438
2,699,873 3,343,654
1,652,288
344,813
408,875
500,428
2,906,404
1,580,407
375,768
1,220,823
6,998
1.056,562
4,240,558
S 5,606,277 7,584,212 11,316,768
8 3,083,609 8 3,129,723
5,377,107 4,191,295
1,695,C66 2,193,589
2,276,497 2,173,071
605,510 98,661
1,237,398 1,208,288
667,5511 706,303
14,943,137 13,700.930
1,533S00 1,558,338
1,046,994 801,967
905,452 936,793
3,486,346 3,297,098
2005
S 370,609
1,356,385
828,907
56,199
2,802,511
1,781,954
7,196,565
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
8 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
2004
3
1,660,032
850.887
48,590
1,144.528
1,353,959
5,434,323
S 9,803,309
2;4.4,865
4,502,109
1,2
3,288.532
a6,041
823,974
722,007
13,1:6,785
1,527,051
350;949
1,983,767 1,878,000 1,679,300 1,677,277
18,429,483 S 16.998,028 17.414,341 14,994,785 12,239,285 10,673,279 9,111,437
83
2003
247,774
824
799,637
46,736
920,829
640,894
.3,480,691
1,377,245
168,451
1,149,437
2,695,133
6,175,824
1.620.616
3,391,831
1,920,200
2.401,037
166,024
747,910
312,367
10,559,985
1,363,359
315,941
2002
172,135 8 183,502
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 1.388,104
179,373 193,649
iq
51,087 123,673
214,175 299,334
1,809.662 1,704,760
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
2001
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
19
1,554,878
Total Governmental Activities
City of Sebastian, Florida
Changes in Wet Assets (continued)
Last Ten Fiscal Years
(accrual basis of accounting)
2010
Net (Expcnsc)IRevenue
Governmental Activities S (10.129,813) (11,962,526) (11,640,400)
Business -Type Activities 112,979 470.493 (390,038)
Total Primary Government Net Expense S (10,016,834) (11,492,033) (12.030,438)
General Revenues and Other Changes in Net Assets
Governmental Activities:
Propettv''axes, Levied for General Purposes S 4,164,128 S 4.801,924 S 5.149,047
Sales and Use Taxes 4,765,200 4,670,106 4.753,718
Franchise Fees 1,228,692 1,327,253 1,199,762
State Shared Revenues 1,825,215 1,821,347 1,989,606
Interest Earnings 144,432 261,203 634,919
Miscellaneous 149,453 140,512 159,300
Transfers (7,020)
12,270,100 13,022,345 13,886,352
Business-Type Activities:
Interest Earnings 15,658 5,544 54,237
Miscellaneous 1,194
Transfers 7,020
Total Business- Type .fcairiiiees 23,872 5,544 54,237
Trnul Primary Government 12,293,972 13,027,889 S 13,940,589
Change in Net Assets
Governmental Activities S 2,140,287 S 1,059,819 S 2,245,952
Business -Type Activities 136,851 476,037 (335,801)
Total Primary Government Chan a in Net Assets 2,277,138 1,535,856 S 1,910.151
;2t The large increase in transfers from 2005 to 2006 is mainly due to the onetime transfer of
building reserve to building fund due to the x classifcation of fund type for the hui!dine operation.
84
2009 2008
2007 2006 2005 2004 2003 2002 2001
3(12,243,264) $(10.357,276) (8,234.009) (7,682,462) S (7,079,294) S (5,483.659) S (5.180,962)
(579.942) 943,460 2,136,436 2.440,986 1,015,833 132.385 49,882
S(12,823,206) (9,413,816) S (6,097,573) (5,191,476) S (6,063,461) S (5,351.274) (5,131,080)
S 5,089.841 4,645,050 4,017,555 3,420,971 S 2,944,456 2,615,939 2,557,333
4,776,691 4,907,906 4,718.691 4.035,545 3,705,922 2,844.825 3,013,293
1.106,698 1253,749 886,3911 770,600 756,194 766,901 753,024
2,083.523 2,242.292 2.138,020 1,721,956 1,523.524 2,068,753 1,336,046
1,147.931 827,224 398.518 398,158 241,358 118.840 236,307
192,3110 256.7811 118,760 388,562 79.662
42,720 (1,414.205) (106,500) (445.844) (534.000)
14,439,704 12,718,796 12,171,434 10,289,948 8,717,116 8,415258 7,896,003
137.207 125.498 45,709 23,774 21.789 32,122 99.521
300 261 9,072
(42,720) 1,414,205 1 106,500 445,844 534.000
94,487 1,539,703 152,509 469,879 564,861 32,122 99,521
S 14,534,191 14,258,499 12,323,943 S 10,759,827 S 9,281,977 8.447,380 7,995.524
S 2,196,440 2,361,520 3,937,425 S 2,607,486 1,637.822 2,931,599 2,715.041
(485,455) 2,483,163 2,288,945 2,960,865 1,580.694 164,507 149.403
S 1,710,985 4,844,683 6,226,370 S 5,568,351 S 3,218.516 3,096,106 2,864.444
Si
General Fund
Nonspendahle 352,248 :57,696 381,528 S 368,609 106,192
Committed 3.063,585 31'83,463 3,502,560 3,742,617 4,844,674
Assigned 31.656 1383 33,453 19.055 9.856
Unassigned 2,164 910 2,324.972 2,390,641 2,260,507 1.518,350
7oral General fund
City of Sebastian, Florida
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis ofaccoutnftig)
2010 2509 200R 2007 2006
5,612,399 5,768,114 6,308,182 6.390,788 6.479,072
All Other Governmental Funds
Nonspendahle 859,463 R30,029 771,927 694.506 656.160
Restricted 7.897.580 8.557.389 t1 12.446,260 12 14,783.299
Total All Cther Ciovemmental funds 8,757443 9,287,41R 13.218,187 13.621.051 15,439,459
Total Governmental Funds 14,369,442 $15,155,532 19,526,369 $20,011,839 21,918,531
The significant reduction in restricted fund balance reported in All Other Governmental Funds from 2008 to 2009,
is a result of the significant completion of the Indian RiverDrive :fain Street and Pedestrian Bridge Projects,
along vailh the significant construction completed on the Collier Canal Retrofit Prject.
13 I'he large increase in restricted fund balance for All Other Governmental Funds 2002 to 2003 is due to the issuance
of City's infrastructure Sales Surtax Revenue Bonds, Series 2003.
13 The increase in committed fund balance and the negative unassigned fund balance in the General Fund is a result
of
Resolution R 42, which established a line of credit reserve in the amount of $1M within the general fund to fund
improvcmaus at the Sebastian lvlunicipal Airport, in anticpation of grant funding.
86
2005 2004
160,964 S 59,921 141,667 S 28,147 27,224
5,546,959 5,411,621 1:1 3,924,363 2,743. )33 2362.161
3.761 5,140 7,706 8.221 8,067
391,783 (361,790) (1S1,886) 1,142,446 1,129,887
6,103,467 5,114,892
578,367 542.999
13392.801 13;815.771
20,074,635 $19,473,662 $17,68.4,349
2003 2002 2001
1881,850 3,922,747 3,527,339
40,402 445,939
13,339,1)97 5,250,078 4.056.658
13,971,168 14,358.770 13,8C2,499 5.696,017 4,463.644
87
406,986
9.618.764 7;990.983
Revenues
Properly and Other !meal Taxes
Franch.se Fees
Charges for Services
Lianas and Permits
Fines
intergovernmental
impact Fees
Special Assessments
investment Earnings
Miscellaneous
Total Revenues
Expenditu res
Curren;
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
Thai Other Financing Sources (Uses)
Nei flange in Fund &glances
Debt Service as a Percentage of Noncapital Expenditures
City of Sebastian, Florida
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual tads of accounting)
88
2010
9,525,074
1,228,692
1.154,739
33,182
90,948
4,572,550
26,000
2211216
169.039
17,028,440
2,699,289
4,938,147
1,210,823
1,405,310
129,352
977,780
2.142,190
577,593
6.1 S9,026
20,269.510
2,462,000
4,486.626
(4,493,646)
2,454.980
19.3%
2 009
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
2,976,896
4,926,714
1448,067
1,696,254
167,470
1,148,408
1,218,995
706,093
6.495,271
5,196,376
(5,196,376)
(786,090) (4,370,837)
13.5%
2008
S 10.504,155
1,199,762
1.209,617
163,471
65,246
2,674,761
12,825
647,312
461,553
16,958,702
3,087,789
4,677,618
1,368,593
1.545,045
113,101
1,0'9,379
1,326,182
611,554
3,634,910
20 17,44,171
(3,241,070) (4,370,837) (485,469)
5,6'9,896
(5479,896)
(485,469)
14.0%
2007
2006
10,554,617 10,269,451 9,483,664 8,1 7,325,932 6,228,107 6,223,280
1,106,698 1,253,749 886,390 7 756,194 766,901 753,024
1,271,102 517.605 936,530 962,677 921,119 1,123,670 300,046
186,875 244,370 1,587,675 1,867,920 878,097 578,695 487,618
71214 77376 95,699 1' 8,918 119,752 127,027 148,676
2,463,628 2,852.293 5,561.695 3,1.5.520 1,785,237 2,841,315 1.968,416
56,875 337,675 385,775 557,700 395,850 255,775
819,286 11,023 28,424 22,560 31,756 28,528
1,062,043 827,224 398,518 398,158 241,358 206,567 417,707
244,629 294.695 144.057 378.268 91,078 126,823 196,311
17,017,781 17,494,124 19,491,026 16,3 77,529 12, 537,177 12,286,636 10, 523,606
2,999.652 2,494,863 2,974,736 2,231,532 1,977,033 2.230,870 1,647,858
4,700,447 3,813.908 4,349.639 3,950.228 3,427,711 2,588,526 4482,393
1,301,719 1,850,642 910.794 1,125,727 1,247,452 508,616 452,116
1,733,697 1,672,983 3,616,076 2,863,397 1,610,761 1,427,992 1,084,401
80,279 98,661 32,128 86,041 166.024 327,911 273,927
975.087 926,846 995.406 747,131 629,835 732,729 612,038
1,284,418 1,248,378 1,218,023 985,974 361,024 344,553 222.954
643 678,682 711,736 887,564 158.043 174,864 152,093
5,244590 1,451,060 3,975.015 9,021,558 3,859,709 4322,794 3,402,365
18.961,194 14236,023 18,783,553 21,899.152 13.437,592 10,658.855 10,330,145
(1,943,413) 3,258,101 707,473 (5,521 623) (900.415) 1,627,781 193.461
5.158,296
(5.115,576)
42,720
S (1,900,693)
3.785,981
(5,200,186
S 1,843,896
2005
3,745,265
(3,851,765)
(106,500)
S 600,973
2004 2003
7,756,780 9,500,000
2345,754 2,992.908
(3.191,598) (3,526,908)
7210,936 8,966,000
2002 2001
900,000
2,009,173 2,130.744
(2.009,173) (2,130,744)
900,000
S 1,789,313 S 8,065,585 1,627,781 1_093,461
14.1% 15.1% 13.0% 14.5% 5.4% 6.2% 5.4%
89
Function /Program
Governmental Activities:
General Government
Public Safety
Physical Environment
Transportation
F.conomic Fnvinmment
Cultural,Recreation
Total Governmental Activities
Business -type activities:
Golf Course
Airport
Building
Total Rusiness-Typc Activities
"fatal Primary Government
City of Sebastian, Florida
Program Revenues by PunclioniProgram
Last'len Fiscal Years
(accrual basis of accounting)
2010
209,144
304,630
881,338
614,305
2,556;872
88,046
4,654335
90
2009
226,003
299,119
1.408,829
612,335
6,000
831,938
3,384,224 3,047,131
1,335,647 1,438433
1,373,551 1.018,087
356,264 358,948 347,189
3,065,462 3.561,302 2,803,509
S 7,719,797 6,945.526 5,850,640
1,406,955
1,795.399
2008
377305
515,997
1,256,277
619,949
277,603
tm The building operation was reclassified from being part of the general find 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 Adminislration
2007 2006 2005 2004 2003 2002 2001
450,267
249.756
891,021
721,103
387,72&
579,591
306.702
890.092
900,365
30,059
636,845
2,699,873 3,343,654
1,652 1.587,405
845,241 1,432,330
4011875 1220,823
2,906,404 4,240,558
S 5,606.277 S 7,584.212
587,527
1,537,557
898,821
3.392,883
779,777
4.120,203
S 11,316,768
392,471
1.850,710
914,318
1,670,534
S 1,095,902 172,135 S 226.786
929,952 7115,373 633,230
1.136,507 785,683 779,837
1,5801076 3,038.913 2.285,809
24,1169 18,753
606,290 663,459 566,959 1611335
7,196,565 5,431,323 5,405,896 5,373,932 1,112,750
1.3 95,3 99 1,715,884 1,377,245 1,365, 517 1,088,104
2,724,804 2,653,102 1,317,888 444,145 616,656
4,368,986 2,695,133 1,809,662 1,704,760
9.803,309 S 8,101,029 7,183,594 5,817,510
91
Fiscal Year Property Taxes Public Lltilit
City of Sebastian, Florida
Tax Revenues by Source. Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
92
Sales Tax
Motor Fuel Total
2010 4,164,128 2 2 595,746 9,525.074
2009 `r' 4,801.924 2,341.458 2328.648 593,776 10,065,806
2008 [4) 5,149,047 2,250,781 2,502.937 601,390 10,504,155
2007 l31 5,089,841 2,216.381 2,560.310 688,085 10,554,617
2006 r'-1 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 3,420971 1.854.632 2.180,913 722.828 8.179,344
2003 2,944,456 1,780317 1,925.205 675,554 7,325,932
2002 in 2,717,564 983,236 1,861.589 665,718 6,228,107
2001 2,608,989 1,151,685 1,86 1,608 600,998 6,223280
(1) Fiscal Year 2002 property tax revenue reflects a change in the property tax mil lage rate 1runl 5.0000 t0 4.5904.
t' Fiscal Year 2006 property tax revenue reflects a change in the property tax millage rate from 4,5904 to 3.9325.
"Fiscal Year 2007 property tax revenue reflects a change in the property fax mi I lage rate from 3,9325 to 3.0519.
(4) Fiscal Year 2008 property tax revenue reflects a change in the property tax millage rate from 3.0519 to 2.9917.
t Fiscal Year 2009 property tax revenue reflects a change in the property tax millage rate from 2.9917 to 3.3455.
Millage Rate represents the dollar of tax per one thousand dollars of taxable valuation.
City of Sebastian Indian River County School Board
Debt Total Total Debt Total
Fiscal Operating Service City County" Operating Service School
Year Millage Milian Mil Inge Millage Millege Millaae Millage Othex
2010 3.3456 3.3456 6.26930 7.29600 0.30000 7.59600 133570
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 733800 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 K.17900 (1.53100 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 5.0(1(10 5.(1(1(1(1 8.24860 8.67700 0.88000 9.55700 1.62899
City of Sebastian, Florida
Properly Tax Rates
Direct and Overlapping Governments
I.ast Ten Fiscal Years
Millage includes General Fund, MS.T,U.s, Emergency Services District and Land Bonds.
42) All Special faxing Districts.
SOUTCC: Incian River County Property Appraiser's Office
93
Source: Indian River County Properly Appraiser
Fiscal Year information is provided from previous Tax Year.
City of Sebastian, Florida
Assessed Valuation and Pstimated Taxable Property Values
Last Ten =iscal Years
Real Property Personal Property
Fiscal Assessed Estimated Assessed Estimated
Year Value Actual Value Value Actual Value
2010 1,650,311.449 2,062,889,311 56,920,223 56,920,223
2009 1,933934,630 2,417,418,288 62,476,508 62,476,508
200K 2,054,408,055 2,568,010,069 64,899,942 64,899,942
2007 2,124,615,672 2.655,769,590 55,913,696 55.913,696
2006 1,5269923,406 1,908,654.258 51,827424 51,827,624
2005 1.157,275,164 1,446,593,955 51,330,277 51,330,277
2004 946,293,950 1,182,867,4311 48,6133,628 411,613,628
2003 829,224.615 1. 036,530,769 45,355,170 45 355,170
2002 754,577,150 943,221,438 45,195.579 45.I95,579
2001 656,619,860 820,774,825 42,216,162 41,5.3,985
94
Total Total
Exemptions Taxable Estimated
Property Value Actual Value
558,090,532 1,707.231,672 2,119.809,534
676,808,522 1,996,411,138 2,479,894,796
334,302 2,119,307,997 2,632,910,011
322.318353 2,180,529,368 2,711,683,286
271,466,364 1, 5 7 8,751,030 1,960.48 1, 8 82
228,262, 825 1, 208.605,441 1,497.924,232
217,554,663 994,907,578 1,231,481,066
205,977,066 874,579,785 1,081,885,939
198,445,669 799.772,729 988,417,017
190,327,263 698,836,022 862,308,810
95
Taxpayer (Business Type)
Florida Power Light (UtilitylF.lec trio)
Vial-Man Stores Inc. (Retail)
IPF Sebastian LLC (Retail)
Bellsouth Communications (Utilitytlelephone)
BW US 1 Inc. (Commerical)
Park Place Community LLC (Rental/Retail)
KB IIomes Treasure Coast LLC (Construction)
512 Commerce Center LLC (Commercial)
Chance Holdings 11C (Development)
Pelican Isles Limited Partnership (Rental)
James T Turner (MIIP.
Ruth Guest House, Inc. (Rental:Retail)
Oyster Point Resort Condo (Time Share +•Rental)
Sebastian Inlet Marina &'Trading Co., Inc.
(Restaurantlllotel)
Charter Conununications (Utility /Cable)
Sebastian Resort Property Inc. (Rental)
Sandy Pines. Ltd. (Rental)
Total Assessed Valuation
Source: Endian Ricer °minty Property Appraiser's Office
City of Sebastian, Florida
Principal Taxpayers
Fiscal Year 2010 and 2001
Real
Property
Assessed
Valuation
15,809,386
13,404,610
9,743,746
7,153,062
6.946,560
6,896,2 10
6,600,600
6,177 ,200
5A92,320
5.066,610
5 83,290,304
5118,591, ?35
96
2010
Percentage Real Percentage
of Total Property of Total
Assessed Assessed Assessed
Rank Valuation Valuation Rank Valuation
1 13.33% S 10,348,995 3 1.29%
2 11.30°.x, 10,784,171 1 1.35%
3 822%
4 6.03% 8,784,704 3 1.10%
5 5.86%
6 5.82%
7 5.57%
8 3.21%
9 4.63%
10 4.27%
3,784,200
3,750,750
3,739,840
3,158,810
3,051,071
2,644.33(1
2,617,500
70.24% 52,664,371
79 °9,772,729
2001
4 0.47%
5 0A7%
6 0.47%
7
8
9
10
0.39%
0.38%
0.33%
0,33%
6.58%
City of Sebastian, Florida
Properly Tax Levies And Collections
Last Ten PisDal Years
Percent of Percent of
Total Current Current Tax Delinquent Total Total Tax
Tax Fax Collections 8s Penalty 'Fax Fax Collections
Year Levy Collections l'o Tax Levy Collections Collections To Tax Levy
2010 S 3,844,658 S 3,716,797 97 S 17,723 S 3,734,520 97
2009 4,44 l,535 4,225,106 95 51,694 4,276,800 96
2998 4,919,994 4,634,338 94 2,906 4,637244 94
2997 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 3323,912 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 1489,854 94 36,421 2,526,275 96
2001 2,542344 1455,930 97 51,690 2507,620 99
Source: Indian River County Property Appraiser and Tax Collector
97
Governmental Activities
City of Sebastian, Florida
Ratios of Outstand ng 1)ebt by 1 ype
Last Ten Fiscal Years
Water 1.ine Roadway Infrenructure Benvy Stormwater tiolfcourse '10131 l'enxm of
Assessment improvement Sales 'lax Equipment Utility Revenue Revenue Primary Personal Per
Year Bonds Notes Bonds Lcusc Bonds Bonds fiovornmera ]mime Capin'
°I Golf Course Revenue Rum's, Series 1996 was refunded in 2001.
1 21 1 nfonnat ioi not available yet.
2010 $2,414,1810 6,980,000 8 4,055.000 S 13,449,000 r 587
2009 1,089:203 7.725,000 4,315.000 300,000 13.127 203 591
2008 1,333197 8,445,0011 4.570,000 590,0011 14,938.197 0.19% 652
2007 1,566,839 9,145,000 147.538 4,815.000 870,000 16.544,377 0.21% 738
2006 1,790.541 9.825.000 288.251 5,055.000 1,140,000 18,098,795 0.25'» 835
2005 2,001,718 10,190,000 422,455 5,2911.1100 1 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°.0 1.100
2003 77,615 2.106,028 9,500,000 672 2,115,000 14 0.31'» 802
2002 134 2,59 .939 788.957 2,335.000 5.852,195 0.13:0 311
2001 187,901 2.R73,84 2,435,000 41 5,396,748 0.12% 324
98
Busin -type
Activities
City of Sebastian, Florida
Computation of Legal Debt Margin
September30, 2010
Assessed Valuation
Assessed taxable property value for tax year 2009 S 1,707,231,672
Deduct: exempt property 55 €,090.532
Total Operating Taxable Value for Debt Service 1.149,141.140
Legal debt margin:
Debt limitation 5 percent of total assessed real property value W S 57,457.057
Debt applicable to limitation
Total bonded debt 1 3,449,000
1.e:s:revenue bonds (11,035.000)
Total applicable to limitation 2,414,000
Legal debt margin
fn City adopted financial policies suite 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 Aclivities Debt
General Obligation Bonds
September 30, 2010
The City of' Sebastian has no overlapping general obligation bonded debt.
94
55.043,057
City of Sebastian, Florida
Ratios of General Bonded Debt Outslanding and Legal Debt Margin
Cast Ten Fiscal Years
2010 2009 2008 2007
Debt Limil(1) 82,515,572 S 96,696,732 S 102,720,403 S 106,230,784
Total net debt applicable in until 2,414,000 1,078,787 1,333,197 1,714,377
Legal debt margin 80,101,572 S 95,617,945 S 101,387,206 S 104,516,407
Total net dept applicable Lo the limit
as a percentage of debt limit 2.93% 1.12% 1.30% 111%
h'. Ender the City's adopted financial policies. the City's outstanding general obligation debt should not exceed 534 of
the assessed valuation of real properly. The percentage was dropped from 1034 to 5% in fiscal year 2003.
100
2006 2005 2004 2003 2002 21/01
76 S 57.863;758 47,314,698 S 41.461.231 37,728,858 S 32,830,993
2,078,796 2.427,174
2.72% 4.19%
2.760,196 3.078.556
3,382,896 3,673,847
74,267.374 55,436.584 44,554,502 S 38.382.675 34,345,962 S 29,157,146
5.83% 7.43% 817% 11.19%
10I
City of Sebastian, Florida
Pledged Revenue Coverage
Last 'fen Fiscal Years
Recreational Facilities Improvement and Refunding Revenue Bonds, Series 2001
Less: Net
Fiscal Gross Operating Available Debt Service
Year Revenuest't Expenses (21 Revenue Principal Interest Total Coverage
2010 1341,555 1,129.651 211,904 300,000 21.700 321,700 0.66
2009 1,408,535 1,178,144 230,391 570,000 49,860 619,860 0.37
2008 1,455,749 1,174;169 281,580 270,000 41.090 311,090 0.91
2007 1,701,171 1,218,382 482,789 255,000 51,590 306,590. 1.57
2006 1,628,015 1,165.411 462,604 250,000 61,690 311,690 r4t 1.48 0'
2005 1,395,436 1,023,002 372,434 240.000 71,490 311,490 1 4 1.20 i5'
2004 1,497,053 1,108,770 388,283 230,000 80,890 310,890 tat 1.25 is
2003 1,400,154 968,052 432,102 220,000 89,890 309,890 11: 1.39 t31
2002 1.386,424 1,020,640 365,784 100,000 104,481 204,481 t'" 1.79 p'
2001 1,165.091 t 1,043,741 121,350 !at s;.
Note: Detail regarding the Citts outstanding debt can he fount in the notes to the Iinancial statements.
Total revenues including charges for services, rents, and interest.
Total direct operating expenses excludes depreciation, amortization, annual Airport lease payment,
and one time hurricane repair and upgrade.
WI Golf Course closed for four months for renovations.
tar Golf Course Bond, Series 1992 refunded with Recreational Facilities improvement and Refunding Revenue
Rends, Series 2001.
t" Required coverage is 1.25.
Final payment was paid on September 30, 2010.
`T' Total revenues consist of stormtvater utility tees and interest.
ts Required coverage is 1.35.
102
Stormwater Utility Revenue Borth, Series 2003
Gross Debt Service
Revenues Principal Interest Total Coverage'
85K,664 260,000 177,485 5 437,485 1.96
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
103
City of Sebastian, Florida
Demographic and Economic Statistics
Last Ten Years
Total Pr. Capita Median
Personal Personal Household School
Year Population ]noome lneotne''" income 1L) Enrollment :2)
2010 22 t 5,167
2009 2 2,722 j °1 t47 N] i=; 3,751
2008 22.924 7.669.062,000 57,107 48267 11) 4,710
2007 2Z426 7,810,408,000 59,419 47,563 5,117
2006 21,666 7,217,159,000 55,817 45.034 5,604
2005 20,048 6386,893,000 50,369 44.450 5.258
2004 19,365 5.071,395,000 40,677 41,522 4.917
2003 18.425 4,831.037.000 40,162 40,291 4340
2002 17,167 4,680,414.000 39,683 39,615 4,309
2001 16,667 4.552,238,000 39,470 3 9,3 59 1,371
Sources:
to Florida Research Economic Database (FRED). Information available for Indian River County only.
(2) Indian River County School Board
cn 'Indian River County Property Appraiser
lnfonnation not available yet
15 The school population appears to have declined as result of loss of job oppununities. Our community lost many
construction jobs as a result of the declining economy.
School enrollment consists of Sebastian River High School, Sebastian River Middle School, liberty Magnet,
1'reasureCcast Elementary. Pelican island Elementary, Sebastian Elementary and Sebastian Charter Junior Hlgh School
104
State
Unemployment Unemployment Property 'faxes 'Total Assessed
Rate 10 Rate Per Capita Property Value
14.4 11.9 34 181.67 1,707,231,672
13.0 10.5 211.33 1,996,41 1,138
7.9 6.3 224.61 2,119,307.997
5.5 4.1 226.96 2,180,529 368
4.1 3.4 214.39 1,578,751,030
4.7 3.8 200.40 1,208,605.141
6.7 4.7 176.66 994,907.578
6.8 5.3 159.81 874,579,785
7.2 5.7 158.30 799,772,729
5,8 4.7 156.54 698.836,022
105
City of Sebastian, Florida
Principal Employers in Indian River County
Year 2010 and 2001
2010
Percentage
Nuntr of of Total County
Employer Employees Employment
School District of Indian River County 2,080 334
radian River County 1,411 226
Indian River Medical Center 1,334 2.14
PuAixSupennarkets 960 1.54
Piper Aircraft, Inc. 850 136
Sebastian River Medical Center 600 0.96
John's Island 550 0.88
City of Vero Beach 505 0.81
Visiting Nurse Association 475 036
Wal-Mart 384 0.62
Disney'Vero Beach Resort 300 0.48
Grand Harbor Management 295 0.47
C :VS \%rarchouserDistribution 278 0.45
Sun Ag, Inc 240 0.39
City of Sebastian 155 025
Total 10,417 16.71
Total County Employees 62,329
2001
Percentage
Number of of Total County
Lmployer Employees Employment
School District of Indian River Coul_v 1 N 3.85
Incian River Mercurial Hospital 1538 3.29
!Reim River County 1464 3.13
the New Piper Aircraft 1349 2.89
Graccwood Fruit Packing 800 1.71
Publix Supennarkets 792 1.70
Wal -Mart 774 1.66
Ilale Indian River Groves 675 1.45
City of Vero Beach 606 1.30
incian River Estates 492 1.05
Total 10,290 22.03 94
Total County Employees 46,700
Source: Indian River County Community Development Report
Principal employers infomratian available for Indian River County only.
106
Functionforoerom
City of Sebastian, Florida
Full -Time F.quivalent City Government Employees by Function:Prograrn
Last Ten Fiscal Years
2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
General Ciov crnntcnt:
City Council. 25 2.5 '15 2.5 2.5 2.5 2.5 2.5 2.5 2
City Malinger 2:5 2.5 2.5 2.0 2.0 5.0 4.0 4.0 4.0 4.0
City Clerk 3.0 3.0 31) 4:0 4.5 4.0 4.0 4.0 5.0 5.0
City Allunwy 2.0 2.0 2.0 2.0 2.0 1.0 1.0 1.0 1.0
Admin:sttative Sctvias 5.0
Finanoa 5.0 5.0 5.0 6.0 5.0 5;0 5.0 6.0 6.0
lvilmlt Information Svcs 3.0 3.0 3.0 3.0 3.0 2.0 10 2.0 0.0 0.0
Human Rc:ourxs 2.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0
Facilities Maintenanx 2.0 2.0 2.0 2.0 2.0 2.0 0.0 4.0 4.0 4.0
Cimwtl. Managcn ent 5.0 5.0 5.0. 5.0 4.0 4.0 4.0 4.0 4.0 4.0
Public Safety:
Policy Department 58.0 59.0 58.0 57.0 58.0 59.0 56.5 54.5 53.0 52.5
Building Depanmunt 5.0 5.0 6.0 11.0 l l.0 9.0 8.0 7.0 7.0 6:0
Code Enforcement 2.5 2.5 2.5 3.0 3.0 0:0 0.0 0:0 3.0 0.0
Jranspdrul:ion_
Roads& Drainage 12-0 10.0 10.0 11:5 12.5 12.5 14.5 11.5 23.5 26.5
Central Garaee 3.5 3.5 2.5 3.5 3.5 311 3.0 31) 3.0 3.0
Airpun 3.0 3.0 3.0 311 3.5 3:5 2.5 2.5 1.5 1.0
Physical Envimmnamt:
Cemetery 2.0 2.0 10 10 2.0 2.0 1D 10 2.0 2.0
Engine ring 7.0 7.0 9.0 8.0 8.0 8.0 7.5 8.0 6.5
Stormwatcr [Alit!: 12:11 1 lA 13.0 13.0 13.0 13.0 12.0 12.0 1.0 0A
Cultural& creation:
Park; d: Recreation 23.0 23.5 23.5 23.5 24.5 23.5 17.5 16.5 14.0 14.0
Golf Course 10.5 9.0 9.0 12.5 [2.5 12.5 135 13.5 14.5 12.5
Totals: 154.5 162.5 164.5 177.5 180.5 175.5 163.0 159.5 157.0 153.5
c1 Eleven auployoes were moved from. roads drainage to stonnwatcr starting fiscal pear 2003.
Cade en brecniern division was lnIniferretl out of the Police Deparanenl starline li,cal year 2016, and 10mslerred hack in lscal year
2009
e t' Finance ;Ind Inman Itesources were cnnlbined to form Administrarivc Services staring fiscal pear 21110.
C'' Engineering department was dismantled, intern program was rased, a» d (2) employees were tr:mslcrred to Roads Drainage
and (1) employee was Transferred to Smnnwatcr
Source: City of Sebastian. Florida 2002 -2011 Annual Budgets
Method: Using 1.0 Ibr each l'idl time employee, and 0.50 tar each p:ul time and seasonal employee
107
City of Sebastian, Florida
Upending indicators by Funetion+'Program
Last Ten Fiscal Years
Function /program '010 2009 2C08 2007 2006 2005 2004 2003 1002 2001
General Government
Number of. Annexations .Approved. 1 3 0 1 1 1 6 3 0 I
Acres or Anneeet Peoperry 5.9 26 0 3.87 3.3 25.55 4K4 80 0 80
Purchase Orders Issued 216 288 254 281 293 369 40$ 372 357 411
Public Safety
Pulicc ]kpartmcru
Physical Arrest 187 543 562 697 744 786 653 557 515 627
Traffic Violations 4,083 4,849 4,418 7,221 6,291 5,457 5 1,939 2,528 2,781
Parking Violations 97 50 108 289 880 303 3.801 632 207 198
Building Department
Construction Fcrmits Issued 36 23 55 101 506 774 577 511 363 315
listimated Value of Construction (in millions) S 6.6 5 5.1 13.3 225 88.3 5114.7 5112.3 5 82.7 $38.9 129.0
Transportation
(Load Maintenance hours) 1.261 600 538 888 512 100 878 850 827 tl
.Asphalt for marl maintenance (6ms) 103 328 358 210 127 125 88 79 75 14
Coneme for raid maintenance lyar ls)'"' 0 0 0 0 300 0 283 277 275 t"
I'hyxical Korinomeot
Comotery•
Cemetery Internments 66 74 68 69 76 79 86 8I 73 78
Grave Deeds Sold 33 39 46 49 56 56 69 45 54 67
Stormw•atcr
Nile of Swaim Maintained 2811 280 280 280 280 280 280 280 280 280
Mile of DitchesAiaintained 50 50 50 50 50 50 50 50 50 50
Rum? Crossing Maintained 411 30 30 30 30 30 30 30 30 30
Caleb Basins/Culverts 315 275 275 275 275 275 275 275 250 248
Recreation
Recreation Gender allendance Ilya 13,465 11910 14:177 8,0(15 5.504 7,498 iu tip n'
NumLcr of Di: aunt Cards 844 879 950 1 2,690 1.000 993 855 890 716
Number uf Golf Course Memberships 96 95 97 108 119 85 116 137 169 190
.Average daily golrrnvcniue 53 $4,000 53.98R 54,661 5.1.1.11 S3.811 54,551 53.836 53.798 $3.192.
"'Information mat available
12) Al] mud maintenance utilized explain, concrete curbing uas 40:Wled.
New Commercial and Residential Only
Sources: City or'Sebastian Police Department. Growth h]anagcmcnr. Public Works.
Go]fCourse, and 13uildin, Denarunent.
108
City of Sebastian, Florida
Capital Asset Statistics by Function /Program
Last Ten Fiscal Years
Function /program 2010 2009. 2008 2007 .2000 2005 2004 2003 2002 2001
General Government
Square Footage 0ocupied 21-500 21.500 21,500 21.500 21.500 21,500 5.516 5,516 5,516 5.516
Departmental Vehicles 3 3 3 3 3 5 2 2 2 3
Public Safety
Police Slaliuris 1 1 1 1 1 1 1 1 1 1
Square Fnnlagc of Police r)epartmenl 25,6011 25,6011 25,6011 25,6110 25;6011 25.600 8, 7011 8,700 8,700 8, ?110
Square Footage of Building Department 2,500 2.500 2.500 2.500 2,500 2,500 1.716 1.716 1,716 1.716
Police Vchirles 63 63 62 57 •3 52 47 42 40 33
Building Inspector Vehicles 3 4 4 5 6 5 4 1 5 •1
Transportation
Streets (miles) 156 156 156 156 150 156 156 149.6 140.0 140.0
Number ofslrettlights (1) 1,230 1,240 1,229 1.309 3,808 3,555 3,543 3,543 3,531 3.531
Airport 1 1 1 1 1 1 1 1 1 1
Public Service Vehicles 22 18 23 21 19 1.1 24 18 22 19
Physical Environment
Public Service Vehicles 15 7 l I 10 12 13 6 7 4 4
Recreation
Nombcr of Parks 19 18 15 14 14 12 12 12 1.0 10
Revro:dion Callers. 2 2 2 2 2 2 2 2 2 2
Park Acreage 316.01 233:79 233.79 229 -37 229.37 223.37 223.37 223 -37 2015 196.47
Recrealion Ccnler Square Footage 4,859 4,859 4,859 4.859 1,859 4.859 4.859 4.859 4,859 4.859
Park Mainte lance 'Vehicles 13 13 13 12 11 10 8 6 6 5
Gulf Course l 1 L 1 1 1 L 1 1 I
Suurees: City of Sebastian Administrative Services Department and G enwth M1lanagemcnl Department
11) This number cepresenls actual unmdcred street lights in the Cit.. (Source: Florida Power Lighl human Billing)
109
NOME OF PELICAN ISLAND
ThES PAGE INTENTIONALLY LEFT BLANK
11O
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
Y Independent Auditor's Management Letter
111
CITYOF
HOME OF PELICAN ISLAND
THIS PAGE INTENTIONALLY LEFT BLANK
112
Harris, Cotherman,
Jones, Price Associates
CercArd N •blic Actuincan-.. CI: rianrc:1
5070 North Highway A 1 A, Suite 250
Vern Beach, 1 L 32963
Tel 772. 2348484
Fax 77Z•234 -848s
.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
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, 2010, and have issued our report thereon dated February 24. 2011. 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 crmiroi exists when the design or operation of a control dots 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 he prevented, or detected and corrected on a timely basis.
Our consideration ofthe 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 iremal control over financia] 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.
Mcnter 111:1'A
"Prodding Vision and Direction to our Clients"
Menace MCPA Div,!ion Noe CPA Eno.
Private Ccmpanirs P,:ticc Section
11
Mrudxr FICPA
Harris, Cothertnan,
Jones, Price Associates
Crrii:rd ?ubli. Annum:ink th..
lonorable Mayor and Members of City Council
City of Sebastian
Sebastian, Florida
I'age 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 February 24, 2011.
This report is intended solely for the informaticn 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.
4P7/IH.axRdtcC �D ill a 'ath!d (.t oath 1
d� 9 J �X�it wnW rPrl¢db
Vero Beach, Florida
February 24, 201 1
114
4>
Harris, Cotherrnan,
Jones, Price Associates
i :rr!ili. I Pd..li.
5070 North Highway Al A, Suite 250
Vero Beach, FL 32963
Tel 772434 -8484
Fax 772. 234.8485
Compliance
Independent Auditors' Report on Compliance with Requirements Applicable
to Each Major State Project and onInternal Cuntrol Over Compliance
in Accordance with the Department of Financial Services State
Projects Compliance Supplement
l lonorsble Mayor and Members of City Council
City of Sebastian
Sebastian, Florida
We have audited the compliance of the City of Sebastian, Florida (the "City) with the types of compliance
requirements described in the Department of Financial Services State Projects Compliance Supplement,
that an applicable to each of its major state projects for the year ended September 30, 2010. the City's
major state projects are identified in the summary of auditors' results section of the accompanying
schedvle of findings and questioned costs- Compliance with the requirements of laws, regulations,
contracts, and grants applicable to each of its major state projects is the responsibility of the City of
Sebastian, Florida's management. Our responsibility is to express an opinion on the City's compliance
based on our audit.
We conducted our audit of compliance 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; Chapter 69I -5, Schedule of
Expenditures of State Financial Assistance, Rules of the Department of Financial Services; and Chapter
10,550, Rulev of the Auditor General- These standards, Chapter 69I -5 and Chapter 10.550, Rules of the
Auditor General, require that we plan and perform the audit to obtain reasonable assurance about whether
non- ccmpliance with the types of compliance requirements referred to above that could have a direct and
material effect on a major state project occurred. Al audit includes examining, on a test basis, evidence
about the City's compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our
opinion. Our audit does not provide a legal determination on the City's compliance with those
requirements.
in our opinion, the City of Sebastian, Florida complied, in all material respects, with the requir rents
referred to above that are applicable to each of its major state projects for the year ended September 30,
2010.
M der— \lt :A
"Providing Vision and Direction to our Clients"
Meagre A1CIA nivisiurt For CPI Bomb
Primo Compenir. kw.: lice Section
115
Mender PICPA
Harri.s, Cothertnan,
Jones, Price Associates
i :m i4 rsl Pu:di.: L:h.v¢r:
Honorable Mayor and Members of City Council
City of 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 state projects. In planning and performing our audit, we considered the City's
internal control over compliance with requirements that could have a direct and material effect on a major
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 our 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 type of compliance requirement of a state project on
a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies,
that adversely affects the entity's ability to administer a state project such that there is more than a remote
likelihood that noncompliance with a type of compliance requirement of a 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
more than a remote likelihood that material noncompliance with a type of compliance requirement of a
state project will not be prevented or detectcd 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 mateaai weaknesses, as detined above.
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 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.
Quit, a
February 24, 2011
116
Identification of major State projects:
State CFDA Number
55.004
CITY OF SEBASTIAN, FLORIDA
Schedule of Findings and Questioned Costs
State Projects
Year Ended September 30, 2010
Section ll Summary of Auditors' Results
Internal control over major State projects:
Material wealmess(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 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
Name of State Project
Joint Participation Agreement with Florida Department of
Transportation Aviation Administration
55.023 Lighting Maintenance and Compensation Agreement
52.013 Stan Mayfield Working Waterfront Grant Contract
Sebastian Working Waterfront Collaborative
Dollar threshold used to distinguish
between Type A and Type B projects: $300.000
Section 11 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.
117
City of Sebastian, Florida
Schedule of Expenditures of Federal Awards
and State Financial Assistance
For the year ended September 30, 2010
Federal State agency Contract
Pass- through Entity CFDA Grant
Federal Pro2nim 7 State Project No. No.
ll.S. Department of Justice
1,1rcct Pmgmms:
Ontur of Juscice Programs
BulletproofVea Partnership 166(17 N/A 2, IOA 3
ARRA F'Y200) Recovery .Act Justice Aestatance Grant Program 16804 20t4 -SR -R9 -215 i 787
Indirect Programs:
Passed thrriturii Florida D epartmem of law Entatcemne11t
ARRA Recovery Acl Justice Assistance Grant 16805 2010- ARRC-INR44 -W& -I 52 28.32'1
Justice Aectstanx Grant 16738 2010- IAGD- INRI -1 -1Y -067 5,834
Total U.S. Department of Justice 37.')52
LLS. Departmentof Transportation
Dices Flograms
Ik ip1 I•bx1 An,tx', Rena
Runway 4x22 Improvement
TOTAL EXPEN D LTCRLS OF FEDERAL AWARDS:
21.1 11J6 12- IIL4141M -I00% 51.627
20106 12-01.45 -009-2009 342,066
Total U.S. Department of Transportation 393,691
The accompanying note% are an integral part of the audit
113
l'ra tide rs to
IitPenditures Subrecipients
S 410.745 S
Department of Transportation
Direct Projects:
Joint Fadicipalion Agreement with Flesidx
Ihp:uluenl of I'rarxlxal: lino .4.irtiun
Adlninlurateo:
Construct Access Road
Construct Hangars
Construct Hangars
Design Runway Rehab, T igbung %larking
District Mamtens,ur
Lighting Mamlrmnet and Compensation Agreement
Total Uepartmett of transportation
City of Sebastian, Florida
Schedule of Expenditures of State Financial Assistance
For the year ended September 30, 2010
State Agency Contract
PASS- through Entity C:SFA Grant
State Pro tit No. No.
The accompanying notes ore an integral Iwo &the audit.
55.004 40:706- <n4-n] 495)80
55064 4IR164.1.44.01 3,426
55.004 116257 -1-94 -01 2,952
55.004 4161 9,002
55.023 405122 -1= 8.W 18.559
119
Expenditures
529,719
Florida Depaeiatent of C'olatnunily Affairs
Florida Communities Trust (FIT)
Stan Mayfield Working W'ale:Mont lir.ncCnntract
Sebastian Welling Waterfront Collaborative 52013 08 2.556,872
Total Fluids Deparimenl of Community Attain 2.556.872
TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE: 5 3.086,591
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.
A. Rerrnrtintr Entitv
The repenting 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.
R. Bask of Accounting
City of Sebastian, Florida
Notes to Schedule of Expenditures of State Financial Assistance
September 30, 2010
Basis of accomting 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 nnodified accrual basis of accounting is followed in the Schedule of Expenditures of State Financial Assistance. Linder the
modified accmal basis, revenues are recognized when they become tncasurable 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.
120
Harris, Cotherman,
Jones, Price 6t. Associates
C:er :i Puh a Aramnranis Chance d
5070 Korth Hiehwav A1A, Suite 250
Vero Beach, FL 32963
Tel 772-234-8484
Fax 772.234.8488
loneiable Mayor and Members of City Council
City of Sebastian
Sebastian, Florida
Independent Auditors'
Management Letter
We have audited the financial statements of the Cily of Sebastian, Florida as of and for the fiscal year
ended September 30, 2010 and have issued our report thereon dated February 24, 2011.
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 Tnttrnal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of
Financial Statements Perfomzed 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 0M13 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 February 24, 2011, 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 oflhe Auditor General Section 10.554(1)0)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 fiidings and recommendations to improve financial management, accounting procedures, and internal
controls. Nothing came to our attention that requires disclosure in the current year.
Ttend'er A1CPA
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Menhir A]CT.A nhision For (:PA Firms
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121
Member P]CPA
Harris, Cotherrnan,
Jones, Price Associates
i.eri rir.I nihlir \r.xnuilaw...i:l :.u:.rc.l
Honorable Mayor and Members of City Council
City of Sebastian. Florida
Page two
The Rules of the .4udilor 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)(1)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( L)(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, 2010, 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, 2010.
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.
ibis 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.
[bUri../ eikamat/Al, l a<.Cki A' Odd.tlt hide'
`fit ambit/data CiageAnki
Vero B�orida
February 24, 201 l
122