HomeMy WebLinkAbout2014 - 2015CITY OF SEBASTIAN, FLORIDA
CITY OF
SE�AMT�N
HOME OF PELICAN ISLAND
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended September 30, 2015
CITY COUNCIL
Richard Gillmor Jerome Adams
Mayor Vice -Mayor
Andrea Coy
Council Member
Jim Hill Bob McPartlan
Council Member Council Member
Prepared by: Administrative Services Department
CITY OF SEBASTIAN, FLORIDA
0 Table of Contents
Page
INTRODUCTORY SECTION 1
City Officials 2
Letter of Transmittal 3
Organizational Chart 8
GFOA Certificate of Achievement 9
FINANCIAL SECTION 10
Independent Auditors' Report
11
Management's Discussion and Analysis
15
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Position
27
Statement of Activities
28
Fund Financial Statements:
Balance Sheet - Governmental Funds
30
Reconciliation of Fund Balances for Governmental Funds to Net Position
of Governmental Activities
32
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds
33
Reconciliation of Net Changes in Fund Balance of Governmental
Funds to Change in Net Position of Governmental Activities
35
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual:
General Fund
36
Discretionary Sales Tax Fund
37
Riverfront Redevelopment Fund
38
Statement of Net Position - Proprietary Funds
39
Statement of Revenues, Expenses and Changes in Fund
Net Position - Proprietary Funds
40
Statement of Cash Flows - Proprietary Funds
41
Statement of Fiduciary Net Position
43
Statement of Changes in Fiduciary Net Position
44
Notes to Financial Statements
46
CITY OF SEBASTIAN, FLORIDA
E Table of Contents
Combining and Individual Fund Financial Statements and Schedules:
Page
Required Supplementary Information:
Single -employer Pension Trust Fund:
83
Schedule of Changes in Net Pension Liability and Related Ratios
77
Schedule of the Net Pension Liability
78
Schedule of Investment Returns
78
Schedule of Contributions
79
Other Postemployment Benefits Plan:
87
Schedule of Funding Progress
80
Schedule of Employer Contributions
80
Coastal Florida Public Employees Association Pension Plan:
90
Schedule of Employer Contributions
81
Combining and Individual Fund Financial Statements and Schedules:
Nonmajor Governmental Funds:
Combining Balance Sheet
83
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances
85
Schedule of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual:
Local Option Gas Tax
87
Parking In -Lieu of Fund
88
Recreation Impact Fee Fund
89
Stormwater Utility Fund
90
Law Enforcement Forfeiture Fund
91
Discretionary Sales Surtax Revenue Bonds 2003 Fund
92
Stormwater Utility Revenue Bonds 2003 Fund
93
Agency Fund:
Combining Statement of Changes in Assets and Liabilities 95
Other:
Capital Assets used in the Operations of Governmental Funds:
Comparative Schedule by Source 97
Schedule by Function and Activity 98
Schedule of Changes by Function and Activity 99
Internal Control and Compliance
Independent Auditor's Report on Internal Control over Financial Reporting
and on Compliance with Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Governmental Auditing Standards 101
Independent Auditors' Management Letter 103
Independent Accountants' Report 106
CITY OF SEBASTIAN, FLORIDA
E Table of Contents
Page
STATISTICAL SECTION (UNAUDITED) 107
Statistical Section Table of Contents
108
Financial Trends Information
Net Position by Component
109
Changes in Net Position
111
Fund Balances, Governmental Funds
115
Changes in Fund Balances, Governmental Funds
117
Program Revenues by Function/ Program
119
Revenue Capacity Information
Tax Revenues by Source
121
Property Tax Rates ($1 per $1,000 of Taxable Value) - Direct and
Overlapping Governments
122
Assessed and Estimated Actual Value of Taxable Property
123
Principal Property Taxpayers
125
Property Taxes, Levies and Collections
126
Debt Capacity Information
Ratio of Outstanding Debt by Type
127
Ratio of Net General Bonded Debt to Estimated Actual Value and Net
General Bonded Debt Per Capita
128
Computation of Legal Debt Margin for General Obligation Bonds
129
Pledged Revenue Coverage
131
Demographic and Economic Information
Demographic and Economic Statistics
133
Principal Employers
135
Operating Information
Full -Time Equivalent City Employees by Function/ Program
136
Operating Indicators by Function/ Program
138
Capital Asset Statistics by Function/ Program
140
0000■
INTRODUCTORY SECTION
CITY OF SEBASTIAN, FLORIDA
CITY OFFICIALS
For the Year Ended September 30, 2015
Joseph Griffin
City Manager
Robert Ginsburg
City Attorney
DEPARTMENT HEADS
Michelle Morris
Police Chief
Frank Watanabe
Community Development & Airport
Director
Wayne Eseltine
Building Official
2
Sally A. Maio, MMC
City Clerk
Kenneth W. Killgore
Administrative Services Director
Jerry Converse
Public Works Director
Greg Gardner
Golf Course Director
MOF
SE
HOME OF PELICAN ISLAND
March 10, 2016
To the Citizens of the City of Sebastian, Florida:
We are submitting the Comprehensive Annual Financial Report of the City of Sebastian, Florida for the
fiscal year ended September 30, 2015, 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, 2015.
Management assumes full responsibility for the completeness and reliability of the information
contained in this report, based on a comprehensive framework of internal control that is established for
this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective
is to provide reasonable, rather than absolute, assurance that the financial statements are free of any
material misstatements.
Chapter 218.39, Florida Statutes requires that the financial statements of the City of Sebastian be
audited by a certified public accountant selected by the City Council. The City's independent Certified
Public Accountants, Rehmann Robson LLC., has issued an unmodified ("clean") opinion on the City of
Sebastian's financial statements for the year ended September 30, 2015. The independent auditors'
report is located on page 13, 14 and 15. Management's discussion and analysis (MDftA) immediately
follows the independent auditors' report and provides a narrative introduction, overview, and analysis
of the basic financial statements. The MDFtA complements this letter of transmittal and should be read
in conjunction with it.
Profile of the Government
The City of Sebastian, Florida is located in Indian River County approximately midway through the east
coast of the Florida Peninsula (between Melbourne and Vero Beach) in an area known as the Treasure
Coast. It is recognized as the Home of Pelican Island, the first designated wildlife refuge in the United
States, a Millennium City, and a Tree City USA. It was first incorporated as the Town of Sebastian in
1924. In the late 1950s General Development Corporation purchased the land from the Mackle family of
Miami and began the development of a planned community that is now the City of Sebastian.
The City has a population of 22,622 living in an area of approximately 14.6 square miles. The City is
empowered to levy a property tax on both real and personal property located within its boundaries. It
also is empowered by state statute to extend its corporate limits by annexation, which it has done from
time to time.
The City is a Florida municipal corporation with a five -member City Council. Council members serve a
two-year term. Annual elections are held on the first Tuesday following the first Monday in November
and two members are elected in even -numbered years and three members are elected in odd -numbered
years. Elections are non-partisan and at -large. Mayor and Vice Mayor are elected from among the
members of every newly seated Council at a Special meeting following the election each year. The City
has operated under a Council -City Manager form of government since 1989.
The City provides a wide range of services including general government administration, police
protection, the construction and maintenance of local roads, public works, recreational and cultural
activities, a golf course, a general aviation airport, and a building department to enforce building
codes.
This report includes all funds of the City. In evaluating the City as a reporting entity, we have included
all component units for which the City Council is financially accountable. The component units have
been blended with the financial statements presented for the Primary Government because the
component unit's governing body is the same as the City Council or because the component unit
exclusively serves the City. The blended component units are the Riverfront Redevelopment Agency and
the Sebastian Police Officer's Pension Trust Fund.
The Council is required to adopt a final budget no later than the close of the fiscal year. This annual
budget serves as the foundation for the City's financial planning and control. The budget is prepared by
fund, function (e.g., transportation), and department (e.g., public works). Shifts in appropriations
within fund totals may be done administratively on the authority of the City Manager. Total fund
appropriation changes and use of contingency appropriations must be approved by the City Council.
Local Economy
The region (which includes the City of Sebastian and the surrounding unincorporated area within the
same county) has a fluctuating labor force depending on agricultural demand and is a strong retirement
community. Although the labor force fluctuates, unemployment in the region increased to high levels
for several years but has shown good improvement in the last few years. As of September 2015, the
Florida Research it Economic Database reported an improved unemployment rate of 6.1%, which
corresponds with improvements being enjoyed at the state and national levels. The overall
unemployment rate for the area has historically been greater than that of the State of Florida.
The largest major occupational group is Office and Administrative Support Occupations (22.5%),
followed by Sales and Related Occupations (17.6%) and Food Preparation and Serving Related
Occupations (13.3%). According to the U.S. Census Bureau (2000), 86% of the population age 25 or older
are high school graduates and 23.1% hold a bachelor's degree or higher. The area median age for 2010
was 50.1 per the U.S. Census Bureau. The median household income for 2014 was $47,548, as reported
by the Florida Research and Economic Database. The geographical area of the City of Sebastian, just
north of the Treasure Coast, houses a number of high-tech industries including NASA and various
aerospace industry -related businesses. In the past, this attracted a workforce with a higher than
average education and technical skills to the vicinity but with the end of the Space Shuttle program,
the loss of these activities affected job availability. Now, the area has diversified to industries focused
on building aerospace vehicles rather than just launching activities. This has helped with providing
employment for this highly skilled work force.
4
Long-term Financial Planning
The voters of Indian River County in November 2003 extended the Infrastructure Sales Surtax in the
amount of $.01 per $1.00 sale for an additional fifteen years and seven months beginning in January
2004. This Infrastructure Sales Surtax is estimated to provide the City in excess of $40 million dollars
over the life of the extension for the City's emergency vehicle and capital improvement needs. In
addition, the City has funded a number of other capital projects with impact fees and has actively
pursued grant funding for some major transportation and environmental improvements. It has also
employed the use of a Community Redevelopment Agency that is funded by means of tax -increment
financing.
The millage was levied at the same 3.8556 for fiscal year 2015. The City had a slight overall increase in
ad valorem proceeds resulting from increases in taxable values due to improvements and additions.
Construction activity remained fairly high with 142 permits being issued for new construction in fiscal
year 2015 with a value of $40.6 million compared to 175 permits being issued for new construction in
fiscal year 2014 with a value of $40.0 million. These levels are higher than past years and can be
primarily attributed to the improved outlook for the housing market.
General Fund unassigned fund balance and amounts committed by the financial policies resolution
based on 30% of the General Fund expenditures budget, were 52% of the General Fund for the fiscal
year 2015 expenditures budget. The City has been steadfast and refused to spend down these balances
because the City understands reliance on accumulated fund balances to fund operating expenditures is
not a prudent fiscal strategy. To this end, the original budget for fiscal year 2015 was balanced without
a reduction of fund balances.
Major Initiatives
Administration
During the budget process, the City adopted a millage increase in order to allocate funds to improve
the Indian River Lagoon, resurface roadways and minimize the impact of proposed additional railway
traffic. These efforts are a very high priority for the community and the City expects to continue
applying the additional taxes from the millage increase to these efforts.
Stormwater
Operation and maintenance activities are accounted for in General Fund, with about one-half of the
costs offset by an annual transfer from the Stormwater Utility Fund. Equipment replacements are being
accounted for in the Stormwater Utility Fund. The City budgeted funds to continue the program to
upgrade the current swale system by contracting to install quarter -round piping. However, it was
recognized during the year that a major effort was sorely needed to do maintenance work on the
swales and ditches. Therefore, a hold was placed on installing the quarter -round piping and funds were
reallocated for maintenance work.
Traffic £t Transportation
The City continues working on transportation improvements. Fund was allocated from discretionary
sales taxes and the community redevelopment agency for enhancements to the "presidential streets"
within the community redevelopment agency area. General fund discretionary sales taxes and gas taxes
were used for paving and widening Main Street and reconstructing Fleming and Coolidge. Discretionary
sales taxes were used to match grants to repave the Main Street access road to the Airport. Funding has
also been established for the reconstruction of Tulip Drive this coming fiscal year.
Airport
The Sebastian Municipal Airport's infrastructure is being developed with the intent of attracting
economic development and stimulating the business climate in order to create jobs in the community.
In fiscal year 2016, a separate budget was once again approved for expenses made toward promoting
economic development. The current Master Plan serves as the guiding document for airport planning.
Land leases are a primary source of airport revenues and over 150 acres of property is available for
lease, for both aviation and non -aviation businesses. Also important are sales from a self -serve fueling
facility. The Airport's limited resources continue to be leveraged by aggressively seeking and obtaining
grants from the Florida Department of Transportation (FDOT) and Federal Aviation Administration (FAA)
for funding to develop the necessary infrastructure. Planned improvements in fiscal year 2016 include
constructing another hangar with grant funds matched by funds from discretionary sales taxes.
Public Safety
The Police Department continues to participate in the accreditation program offered by the commission
for Florida Law Enforcement Accreditation. The designation encourages the Police Department to
establish goals and objectives with provisions for periodic updating; constant reevaluation of whether
departmental resources are being employed in accordance with agency goals, objectives and mission;
constant reevaluation of departmental policies and procedures as documented in the department's
written directive system; to accommodate correction of internal deficiencies and inefficiencies before
they become public problems; and the opportunity to reorganize without the appearance of personal
attacks. Standards and performance measurements resulting from the accreditation process will
continue to guide both Sebastian Police Department and city administration in alleviating potentially
adverse conditions.
Culture Et Recreation
The City continued efforts to promote the "working waterfront" concept on the riverfront properties
that were purchased with grant funding and has a lease with a not-for-profit entity to advance this
effort. During fiscal year 2015, grants were approved to enhance those facilities with drainage
improvements and other amenities. Parks and Recreation completed the project to rebuild the Skate
Park and make parking improvements at the Community Center. Funding was also allocated to
maintain some of the facilities with replacements of tables, benches and shrubs as needed. At the end
of the fiscal year, a plan was developed for a complete replacement of the irrigation system for the
Golf Course using discretionary sales taxes and a loan from the Building Enterprise Fund.
N
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Sebastian for its
comprehensive annual financial report for the fiscal year ended September 30, 2014. This is a
prestigious national award -recognizing conformance with the highest standards for preparation of state
and local government financial reports. In order to be awarded a Certificate of Achievement, a
government must publish an easily readable and efficiently organized comprehensive annual financial
report. This report must satisfy both U.S. generally accepted accounting principles and applicable legal
requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our
current comprehensive annual financial report continues to meet the Certificate of Achievement
Program's requirements and we are submitting it to the GFOA to determine its eligibility for another
certificate.
The preparation of this report would not be possible without the dedicated service of the
Administrative Services department staff. Their efforts toward improving the accounting and financial
reporting systems has led to the improved quality of information reported to the City Council, State
and Federal agencies and the citizens of the City of Sebastian. We sincerely appreciate their
contributions.
Respectfully submitted,
1
Joseph Griffin
City Manager
r
Kenneth W. Killgore
Administrative Services Director
7
CITY OF SEBASTIAN, FLORIDA
Organizational Chart
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CITY OF SEBASTIAN, FLORIDA
GFOA Certificate of Achievement
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Sebastian
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2014
Executive Director/CEO
9
FINANCIAL SECTION
10
Rehmann
INDEPENDENT AUDITORS' REPORT
March 10, 2016
Honorable Mayor and
Members of City Council
City of Sebastian
Sebastian, Florida
Report on the Financial Statements
Rebmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the accompanying financial statements of the governmental activities, the business -
type activities, each major fund, and the aggregate remaining fund information of the City of
Sebastian, Florida (the "City"), as of and for the year ended September 30, 2015, and the related
notes to the financial statements, which collectively comprise the City's basic financial statements as
listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Independent Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of
the financial statements.
Rebmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators 11104HPIR \
11
1NTHR NAT I ON AL
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, the financial statements referred to previously present fairly, in all material respects,
the respective financial position of the governmental activities, the business -type activities, each
major fund, and the aggregate remaining fund information of the City of Sebastian, Florida as of
September 30, 2015, and the respective changes in financial position and cash flows, where applicable,
thereof and the respective budgetary comparison for the General Fund and each major special revenue
fund for the year then ended in conformity with accounting principles generally accepted in the United
States of America.
Implementation of GASB Statement No. 68
As described in Note 17, the City implemented the provisions of GASB Statement No. 68, Accounting
and Financial Reporting for Pensions in the current year. Accordingly, beginning net position of
governmental activities was restated. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis and the Schedules of Funding Progress and Employer Contributions for the
pension and other postemployment benefit plans, as listed in the table of contents, be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of preparing
the information and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because
the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Sebastian, Florida's basic financial statements. The combining and
individual fund financial statements and schedules are presented for purposes of additional analysis and
are not a required part of the basic financial statements.
12
The combining and individual fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. The information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the information is fairly stated in all material respects in relation to
the basic financial statements as a whole.
The introductory section and statistical tables are presented for purposes or additional analysis and are
not a required part of the basic financial statements. Such information has not been subjected to the
auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not
express an opinion or provide any assurance on it.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 10,
2016, on our consideration of the City of Sebastian, Florida's internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
the City's internal control over financial reporting and compliance.
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13
MANAGEMENT'S DISCUSSION AND ANALYSIS
14
CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
The City of Sebastian's (the "City") discussion and analysis is designed to (a) assist the reader in focusing on significant
financial issues, (b) provide an overview of the City's financial activity, (c) identify changes in the City's financial
position, (d) identify any material deviations from the financial plan, and (e) identify individual fund issues or concerns.
Since the Management's Discussion and Analysis (MDBA) is designed to focus on the current years activities, resulting
changes and currently known facts, please read it in conjunction with the Transmittal Letter and the City's financial
statements.
Financial Highlights
The assets of the City exceeded its liabilities at the close of the fiscal year 2015 by $54,271,269 (net position). Of
this amount, $3,534,772 (unrestricted net position) may be used to meet the City's on-going obligations to citizens
and creditors.
The City's total net position increased by $1,461,286 in governmental activities and $248,986 in business activities
primarily from an increase of $721,700 in capital grants and $159,642 in operating grants not received in the prior
year.
Governmental funds reported a combined ending fund balance of $11,520,209, an increase of $79,722 from the
prior year. Approximately 46% of this amount, $5,230,704 is unassigned and available for spending, a decrease of
just $53,326 from fiscal year 2014, due to a larger amount of capital expenditures from the General Fund and the
Discretionary Sales Tax Fund.
The Golf Course Fund and Airport Fund reported an increase in the deficit in unrestricted net position, due to
operating losses in those funds, largely resulting from the amounts of depreciation expense. The Building Enterprise
fund reported an increase in net position, as a result of an improved levels of construction activity. All of the City's
enterprise funds reported a positive amount of overall net position at the end of the year.
Overview of the Financial Statements
The annual report consists of a series of financial statements. The Statement of Net Position and the Statement of
Activities provide information about the activities of the City as a whole and present a longer-term view of the City's
finances. For governmental activities, the fund financial statements tell how these services were financed in the short
term as well as what remains for future spending. Fund financial statements also report the City's operations in more
detail by providing information about the City's most significant funds. The notes to the financial statements provide
additional information that is essential to a full understanding of the data provided in the government -wide and fund
financial statements.
Government -wide Financial Statements. The government -wide financial statements are designed to provide readers
with a broad overview of the City's finances, in a manner similar to a private -sector business.
The statement of net position presents information on all of the City's assets, deferred outflows of resources, liabilities
and deferred inflows of resources, with the difference between them reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or
deteriorating.
The statement of activities presents information showing how the government's net position changed during the most
recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change
occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for
some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused
vacation leave).
15
CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
Both of the government -wide financial statements distinguish functions of the City that are principally supported by
taxes and intergovernmental revenues (governmental activities ) from other functions that are intended to recover all or
a significant portion of their costs through user fees and charges (business -type activities ). The governmental activities
of the City include general government, public safety, cultural and recreation, and general administration. The business
type activities of the City include the golf course, airport, and building operations.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources
that have been segregated for specific activities or objectives. The City, like other state and local governments, uses
fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the
City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government -wide financial statements. However, unlike the government -wide financial
statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources,
as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in
evaluating a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful
to compare the information presented for governmental funds with similar information presented for governmental
activities in the government -wide financial statements. By doing so, readers may better understand the long-term
impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the
governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The City maintains fifteen individual governmental funds. Information is presented separately in the governmental
funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances
for the General Fund, Discretionary Sales Tax Fund, Riverfront Redevelopment Fund and Capital Improvements Fund all
of which are considered to be major funds. Data from the other eleven governmental funds are combined into a single,
aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of
combining statements and schedules elsewhere in this report.
The City adopts an annual appropriated budget for its General Fund and special revenue funds. Budgetary comparison
statements have been provided for these funds to demonstrate compliance with this budget.
Proprietary Funds. The City maintains one type of proprietary funds. Enterprise funds are used to report the same
functions presented as business -type activities in the government -wide financial statements. The City uses enterprise
funds to account for the golf course, airport, and buildings department.
Proprietary funds provide the same type of information as the government -wide financial statements, only in more
detail. The proprietary fund financial statements provide separate information for the golf course, airport, and
buildings department, which are considered to be major funds of the City.
Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government -wide financial statements because the resources of
those funds are not available to support the City's own programs. The accounting used for fiduciary funds is much like
that used for proprietary funds.
Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of
the data provided in the government -wide and fund financial statements.
16
CITY OF SEBASTIAN, FLORIDA
N Management's Discussion and Analysis
Other Information. In addition to the basic financial statements and accompanying notes, this report also presents
certain required supplementary information.
Government -wide Financial Analysis
As previously stated, net position may serve over time as a useful indicator of a government's financial position. In the
case of the City, assets exceeded liabilities by $54,271,249 at the close of the most recent fiscal year.
Net Position
Governmental Activities Business -type Activities Total
2015 2014 2015 2014 2015 2014
Current and other assets $12,446,304 $12,413,518 $ 488,176 $ 353,051 $12,934,480 $12,766,569
Capital assets, net 41,261,857 41,251,526 10,730,146 10,652,054 51,992,003 51,903,580
Total assets 53,708,161 53,665,044 11,218,322 11,005,105 64,926,483 64,670,149
Deferred outflows of
resources 905,733
Long-term liabilities
Other liabilities
Total liabilities
Deferred inflows of
resources
Net position
Net investment in
capital assets
Restricted
Unrestricted
Total net position
905,733
7,597,609 9,108,109 398,419 480,861 7,996,028 9,588,970
3,138,184 900,382 234,229 187,556 3,372,413 1,087,938
10,735,793 10,008,491 632,648 668,417 11,368,441 10,676,908
192,506
192,506
35,220,857
33,643,526
10,517,895 10,367,350 45,738,752
44,010,876
4,997,724
5,115,627
- - 4,997,724
5,115,627
3,467,014
4,897,400
67,779 (30,662) 3,534,793
4,866,738
$43,685,595
$43,656,553
$ 10,585,674 $10,336,688 $54,271,269
$53,993,241
A substantial portion of the City's net position, $45,738,753 (84.3 percent), reflects its investment in capital assets
(e.g., land, buildings, machinery and equipment), less any related outstanding debt used to acquire those assets. The
City uses these capital assets to provide services to citizens; consequently, these assets are not available for future
spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the
resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be
used to liquidate these liabilities.
An additional portion of the City's net position of $4,997,724 (9.2 percent) represents resources that are subject to
external restrictions on how they may be used. The City may use the remaining balance of unrestricted net position of
$3,534,772 (6.5 percent) to meet its ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position,
for the government as a whole and for its separate governmental activities. Unrestricted net position were negative for
business -type activities as a whole, but improved over the prior year. This was due to the substantial increase in the
building fund's revenues.
17
CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
Revenues
Program revenues:
Charges for services
Operating grants
Capital grants
General revenues:
Property taxes
Other taxes
Intergovernmental
Other
Total revenues
Expenses
General government
Public safety
Physical environment
Transportation
Economic environment
Cultural and recreation
Interest and fiscal
charges
Golf course
Airport
Building
Total expenses
Change in net position,
before transfers
Transfers
Change in net position
Net position, beginning
of year
Restatement for
implementation of
GASB 68
Change in Net Position
Governmental Activities Business -type Activities
2015 2014 2015 2014
Total
2015 2014
$ 1,608,600 $ 1,623,586 $ 2,503,127 $ 2,449,114 $ 4,111,727 $ 4,072,700
345,937 186,295 - - 345,937 186,295
994,546 739,785 702,154 235,215 1,696,700 975,000
3,594,210
3,248,113
3,594,210
3,248,113
5,555,270
5,320,051
5,555,270
5,320,051
2,365,137
2,208,700
2,365,137
2,208,700
1,546,950
1,572,427
25,970 1,484 1,572,920
1,573,911
16,010,650
14,898,957
3,231,251 2,685,813 19,241,901
17,584,770
3,015,536
2,923,398
3,015,536
2,923,398
5,164,197
4,908,374
5,164,197
4,908,374
2,759,461
2,310,539
2,759,461
2,310,539
2,024,814
1,828,569
2,024,814
1,828,569
194,630
247,891
194,630
247,891
1,293,246
1,229,369
1,293,246
1,229,369
100,468 235,071 -
-
100,468
235,071
- - 1,409,829
1,406,770
1,409,829
1,406,770
1,038,361
1,031,464
1,038,361
1,031,464
531,087
465,717
531,087
465,717
14,552,352 13,683,211 2,979,277
2,903,951
17,531,629
16,587,162
1,458,298 1,215,746 251,974 (218,138) 1,710,272
2,988 (14,822) (2,988) 14,822 -
1,461,286 1,200,924 248,986 (203,316) 1,710,272
997,608
997,608
43,656,553 42,455,629 10,336,688 10,540,004 53,993,241 52,995,633
(1,432,244) - - - (1,432,244) -
Net position end, of year $43,685,595 $43,656,553 $ 10,585,674 $10,336,688 $54,271,269 $53,993,241
The City's net position increased by $278,008 during the current fiscal year. The primary reason for the increase in net
position for governmental activities is related to an increase in grant revenues and in general revenues, although those
were almost entirely offset by the restatement for implementation of GASB 68. For business -type activities, the decline
in net position is related to expenses in excess of revenues.
18
CITY OF SEBASTIAN, FLORIDA
N Management's Discussion and Analysis
Governmental Activities. Governmental activities increased the City's net position by $1,461,286 as compared to the
prior year increase of $1,200,924. Key elements of this increase are as follows:
An increase in expenses of $869,141
An increase in general revenues of $712,276
An increase in program revenues of $399,417
A change in transfers of $17,810
Expenses and Program Revenues - Governmental Activities
6,000,000
5,000,000 ■ Expenses
■ Program Revenues
4,000,000
3,000,000
2,000,000
1,000,000
General Public safety Physical Transportation Economic Cultural and Interest and
government environment environment recreation fiscal
Intergover
15;
Othertaxe
43%
Revenues by Source - Governmental Activities
.,.k,..
WA
ng grants
r�
0
ital grants
6%
Property taxes
22%
CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
Business -type Activities. Business -type activities increased the City's net position by $248,966. The key elements of
this increase are as follows:
An increase in expenses of $75,346
An increase in general revenues of $24,486
An increase in program revenues of $520,952, due to grants.
A change in transfers in of $17,810
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
Capital
22'
Expenses and Program Revenues - Business -type Activities
Golf course
Airport
■ Expenses
■ Program Revenues
Revenues by Source - Business -type Activities
Building
Ooeratin¢ ¢rants and
20
Charges for services
77%
CITY OF SEBASTIAN, FLORIDA
N Management's Discussion and Analysis
Financial Analysis of the City's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance -related legal
requirements.
Governmental Funds. The focus of the City's governmental funds is to provide information on near-term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the City's financing
requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources
available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of
$11,520,209, an increase of $79,722 from the prior year. Of this amount, 45 percent ($5,230,704) constitutes
unassigned fund balance, which is available for spending at the City's discretion. The remainder of fund balance is
classified as one of the following: A) Nonspendable for 1) inventories and prepaids, 2) long-term cash advances, or 3) is
nonspendable as permanent fund corpus for cemetery perpetual care; B) Restricted for capital projects or due to debt
service and special revenue fund designations; C) is committed for development by local ordinance; or D) has been
assigned for other specific uses in the City's general operations.
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned fund balance
of the General Fund was $5,289,322 while total fund balance amounted to $5,652,594. As a measure of the General
Fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund
expenditures. Unassigned fund balance represents 48 percent of total General Fund expenditures, while total fund
balance represents 50 percent of that same amount.
The fund balance of the City's General Fund decreased by $80,738 during the current fiscal year, as compared to the
$263,874 increase reported in the prior fiscal year. Key factors in this change are as follows:
Property tax revenues increased by $321,737 due to millage increase and additions to taxable property values.
Charges for services decreased by $54,171
Intergovernmental increased by $151,872
Public utility taxes increased by $57,284
Franchise fees increased by $51,282
All other revenues increased by $27,022
Transfers in from other funds were increased by $37,556
Transfers out from other funds were increased by $349,590
Expenditures increased by $587,604
The General Fund budgeted for no change in fund balance. The actual decrease in fund balance was $80,738.
Significant changes in budgetary variances are as follows:
Property tax revenues had a positive budgetary variance of $2,440, with 96% of the tax roll being collected. 96% of
the tax roll is budgeted as being collected, based on experience. No less than 95% must be budgeted per Florida
statutes.
Intergovernmental revenue had a positive budgetary variance from higher than anticipated receipts from municipal
revenue sharing and local half -cent sales taxes transmitted by the state.
General Fund expenditures had an overall positive budgetary variance of $185,508. Unanticipated capital purchases
were necessary in several departments, however these were usually covered by savings from operating accounts or
by additional appropriations from reserves.
21
CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
The Discretionary Sales Tax revenue special revenue fund has a total fund balance $2,413,576, a decrease from the
$2,996,414 total fund balance of the prior year. Funds are intentionally being earmarked for projects that are planned
in future years.
The Riverfront Redevelopment Fund ended the year with $446,728 in fund balance, as a result of the transfers out for
pending construction projects being less than budgeted.
The Capital Improvements Fund has a negative total fund balance of $44,010, resulting from payments owed to
contractors that were not yet billed for grant reimbursement.
Proprietary Funds. The City's proprietary fund financial statements provide the same type of information found in the
government -wide financial statements, but in more detail.
The total net position of the golf course fund at the end of the fiscal year amounted to $86,800, while the unrestricted
net position (deficit) amounted to ($264,941). Compared to the prior year in the same category, net position declined
from the prior year and the unrestricted net position (deficit) increased by $27,632 from the prior year. This is mainly
due to the operating loss recorded for the fiscal year.
The total net position of the airport fund at the end of the fiscal year amounted to $9,492,496, while the unrestricted
net position (deficit) amounted to ($642,333). Compared to the prior year in the same category, net position has
increased by $271,224 while the unrestricted net position (deficit) has improved by $99,978. The improvement in the
unrestricted net position (deficit) is mainly due to an increase in amounts invested in capital assets resulting from
capital contributions.
The total net position of the building fund at the end of the fiscal year amounted to $1,006,358. This is an increase of
$53,299 from the prior year, which was primarily due to the continuation of healthy levels of operating income.
Other factors concerning the finances of these three funds have already been addressed in the discussion of the City's
business -type activities.
Budgetary Highlights
Over the course of the fiscal year, the City Council formally approved revisions to the City budget four times. These
budget adjustments fell into two major categories. The first includes amendments to allocate additional funds for
grants, new projects or equipment repairs/ replacements that were not originally budgeted. The second includes
transfers to address budget shortages in operating budget accounts resulting from properly classifying charges or for
unanticipated expenditures. The third includes project transfers to close out capital projects or reallocate funds
between them to address budget shortages due to higher bids than anticipated and/or other unanticipated
expenditures. The main components of the increases are as follows:
Amendments
$456,057 to replace a VAC Truck and Bucket Truck that required excessive repairs.
$30,215 to repair pedestrian bridges that needed to be immediately addressed.
$28,152 for sinkhole, ditch/dredge work that needed to be done without delay.
$61,762 for the purchase of permitting, licensing and compliant tracking software.
$29,382 to use auction proceeds to replace a public works pickup truck.
22
CITY OF SEBASTIAN, FLORIDA
0 Management's Discussion and Analysis
$14,980 for pipe repairs needed on Coolidge/Indian River Drive.
$200,000 to proceed with CAV CORP parking lot project.
$18,000 to settle the Fisherman's Landing law suit.
$50,000 for engineering assessment of seawalls to determine the City's responsibilities.
$1,300,000 to proceed with a contract to replace the Golf Course irrigation system.
$29,983 to outfit the Police Department's communications console.
$72,977 to widen Main Street in addition to the scheduled repaving project.
$156,000 to accept grant and provide matching funds for the purchase of an excavator.
$16,881 for purchasing equipment form the Law Enforcement Forfeitures Fund.
$13,281 for emergency repairs to the City Hall Et Community Center air conditioner units.
$11,000 for requested improvements to the Veteran's Memorial.
$112,670 to cover changes resulting from reorganizations after departing employees.
$100,000 to accept FDOT Highway Beautification Grants for median improvements.
$20,000 to set up budgets from donations received from the Arden Greer Trust Fund.
$11,567 to apply site plan review fee revenues to expenditures needed for the reviews.
$41,306 to budget for an excavator purchase.
$293,487 to use the Stormwater debt service budget for necessary ditch cleaning work.
$20,634 to adjust between the Presidential Streets and Coolidge Drive projects.
-$60,000 to close the Yacht Club Pier decking reconstruction project.
$145,700 to budget receipt of State Police Pension monies and Trust Fund contribution.
$22,150 to use the Golf Capital Account for Starter Shack/Cart Barn repairs.
$20,754 to cover added expense for contracting out janitorial services.
$11,804 to buy tactical vests for the Police Department.
$20,000 to cover the purchase of Stormwater pipe and equipment rental.
$20,000 to cover the Police Department tuition reimbursement account.
$10,252 for replacement of a Parks mower that requires extensive repairs.
$10,000 to add Waterfront Museum Grant proceeds and corresponding expenditures.
$54,186 for all other amendments during the fiscal year.
Operating Budget Transfers
$10,992 to cover additional charges for the Golf Course maintenance contract.
$16,098 to reclassify the costs of Police Department vests to the proper account code.
$118,505 for all other operating budget transfers during the fiscal year.
Project Budget Transfers
$15,000 to purchase a walk-in cooler for the Crabby Bills restaurant.
$11,266 to purchase an ice maker for the Crabby Bills restaurant.
$13,500 to use project funding for the City Council Chambers to purchase a server and monitors.
$16,916 closed completed projects -Tennis Wall, Veteran's Memorial and Gateway Enhancement.
-$22,213 to close the completed City Hall Roof Repair project.
-$18,000 to cancel the Disc Golf project.
-$35,353 to close the completed Skate Park and Fleming Street projects.
$127,023 to use the Tulip Street project for the Fleming Street project.
$182,440 to apply Quarter -Round project to debt service on the Stormwater Bank Notes.
$7,990 for all other project budget transfers during the fiscal year.
During the fiscal year, total General Fund actual expenditures were less than final amended budgetary estimates.
Although an overall variance on revenues and expenditures resulted in a decrease to existing fund balances, $241,231 of
those expenditures was allocated from fund balance to address unbudgeted repairs and replacements that had been
deferred during years of the economic downturn.
23
CITY OF SEBASTIAN, FLORIDA
N Management's Discussion and Analysis
Capital Asset and Debt Administration
Capital Assets. At the end of fiscal year 2015, the City had $51,992,003 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 $88,423, or (0.2%), over last
year. The following table illustrates the changes in capital assets. Additional information regarding the City's capital
assets can be found in Footnote 7 of the of the Notes to the Financial Statements section of the CAFR.
Capital Assets (Net of Depreciation)
Governmental Activities Business -type Activities Total
2015 2014 2015 2014 2015 2014
Land
$ 8,319,588
$ 8,319,588
$ 19,436
$ 9,060
$ 8,339,024
$ 8,328,648
Buildings
7,602,031
7,892,766
4,763,414
4,931,028
12,365,445
12,823,794
Improvements
3,231,519
3,403,336
789,680
858,289
4,021,199
4,261,625
Equipment
2,040,362
1,487,763
372,574
24,493
2,412,936
1,512,256
Infrastructure
19,595,982
20,065,904
4,441,103
4,566,559
24,037,085
24,632,463
Construction in progress
472,375
82,169
343,939
262,625
816,314
344,794
Total capital assets, net
$41,261,857
$41,251,526
$ 10,730,146
$10,652,054
$51,992,003
$51,903,580
Governmental activities had the following major changes during the fiscal year:
A decrease in buildings mainly due to the amount of depreciation.
A decrease in improvements mainly due to the amount of depreciation
An increase in equipment mainly due to purchases of equipment needed for stormwater system maintenance.
An decrease in infrastructure mainly due to stormwater improvements offset by depreciation.
Business -type activities had the following major changes during the fiscal year:
An increase in land due to purchasing a residential property to resolve code violations.
An increase in equipment due to large purchases made in the airport fund.
A decrease in other categories mainly due to the amount of depreciation.
Long -Term Liabilities. At the end of the current fiscal year, the City had total long-term liabilities outstanding of
$7,996,028. Of this amount, $6,253,250 consist of notes pledging specific revenues to the repayment of the debt. More
detailed information regarding these activities and funds can be found in Footnote 8 of the of the Notes to the Financial
Statements section of the CAFR.
Total Long -Term Liabilities
Governmental Activities Business -type Activities Total
2015 2014 2015 2014 2015 2014
Notes payable $ 6,041,000 $ 7,608,000 $ 212,250 $ 284,704 $ 6,253,250 $ 7,892,704
Compensated absences 1,465,409 1,405,482 186,169 196,157 1,651, 578 1,601,639
Termination benefits - 3,427 - - - 3,427
Pollution remediation 91,200 91,200 - - 91,200 91,200
Total $ 7,597,609 $ 9,108,109 $ 398,419 $ 480,861 $ 7,996,028 $ 9,588,970
24
CITY OF SEBASTIAN, FLORIDA
N Management's Discussion and Analysis
The City's total debt decreased by $1,592,942 (16.6%) during the current fiscal year. The net decrease was primarily
attributable to annual principal payments that occurred during the year.
The City's debt is primarily bank notes which are not rated by AAA rated insurance agencies. Other obligations of the
City include accrued vacation pay and sick leave.
Economic Factors and Next Year's Budget and Rates
The City's elected and appointed officials considered many factors when setting the fiscal year 2015 budget, tax rates,
and fees that will be charged for the business -type activities. One of those factors is the economy. Sebastian's local
economy consists largely of retail and service industries. Less than one percent is devoted to industrial activities.
Construction of new homes is the largest single business in the area. Some of the largest retail stores include Publix
Supermarket and Wal-Mart Stores, Inc.@ The Indian River County unemployment rate in September 2015 was 6.1 percent
and less than the higher levels of previous years, which is a positive sign and analogous to the economic pattern existing
throughout the state and nation.
The City experienced a 9.6% overall increase in property values for 2016. The same millage of 3.8556 was levied in
order to continue allocating funds to improve the Indian River Lagoon, resurface roadways and minimize the impact of
proposed additional railroad traffic.
The Golf Course reported less revenues from fees in 2015. It was able to allocate some funds to postpone repair and
maintenance needs but it was not able to repay the temporary loans from the General Fund made in prior year. It is
expected that with a reasonably good level of revenues in the coming year, those loans can be repaid.
The General Fund also made temporary interfund loans to the Airport in order to provide sufficient cash flow. Some of
these were repaid in 2015. Sizable operating losses are primarily the result of depreciation on capital assets.
With a good level of revenues from building permit fees, the Building Enterprise Fund continued to report a positive
change in net position. There are signs of steady activity in the local housing market, which are encouraging.
Requests for Information
This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general
overview of the City's finances and to show the City's accountability for the money it receives. If you have questions
about this report or need additional information, contact the Administrative Services Department at City of Sebastian,
1225 Main Street, Sebastian, Florida 32958.
25
BASIC FINANCIAL STATEMENTS
26
CITY OF SEBASTIAN, FLORIDA
Statement of Net Position
September 30, 2015
Assets
Cash and cash equivalents
Temporarily restricted cash and cash equivalents
Investments
Permanently restricted investments
Receivables, net
Internal balances
Prepaid items
Inventories
Deposits held in escrow
Capital assets not being depreciated
Capital assets being depreciated, net
Total assets
Deferred outflows of resources
Deferred pension amounts
Liabilities
Accounts payable and other current liabilities
Accrued interest payable
Unearned revenues
Long-term liabilities:
Due within one year
Due in more than one year
Net other postemployment benefits liability
Net pension liability
Total liabilities
Deferred inflows of resources
Deferred pension amounts
Net position
Net investment in capital assets
Restricted for:
Debt service
Perpetual care:
Nonexpendable
Special revenue uses:
Primary Government
Governmental Business -type
Activities Activities Total
$ 5,409,478 $ 399,437 $ 5,808,915
1,624,621
-
1,624,621
2,752,879
716,676
3,469,555
74,000
-
74,000
1,081,996
655,340
1,737,336
1,325,087
(1,325,087)
-
122,125
14,625
136,750
43,911
25,583
69,494
12,207
1,602
13,809
8,791,963
363,375
9,155,338
32,469,894
10,366,771
42,836,665
53,708,161 11,218,322 64,926,483
905,733 905,733
863,283 154,303 1,017,586
37,285 545 37,830
62,812 78,389 141,201
1,666,590
49,861 1,716,451
5,931,019
348,558 6,279,577
24,726
992 25,718
2,150,078
2,150,078
10,735,793 632,648 11,368,441
192,506
192,506
35,220,857 10,517,895 45,738,752
682,280 682,280
928,758 928,758
Infrastructure improvements
2,814,446
2,814,446
Redevelopment expenses
449,802
449,802
Stormwater expenses
90,729
90,729
Law enforcement events
31,709
31,709
Unrestricted
3,467,014 67,779
3,534,793
Total net position
$ 43,685,595 $ 10,585,674
$ 54,271,269
The accompanying notes are an integral part of these basic financial statements.
27
CITY OF SEBASTIAN, FLORIDA
Statement of Activities
For the Year Ended September 30, 2015
Program Revenues
Operating Capital Net
Charges Grants and Grants and (Expense)
Functions / Programs Expenses for Services Contributions Contributions Revenue
Primary government
Golf course
Governmental activities:
1,333,189
- (76,640)
Airport
1,038,361
General government
$ 3,015,536
$ 372,255 $
162,269 $
$ (2,481,012)
Public safety
5,164,197
80,763
173,618
(4,909,816)
Physical environment
2,759,461
1,087,642
-
(1,671,819)
Transportation
2,024,814
-
10,050
633,096 (1,381,668)
Economic environment
194,630
-
-
- (194,630)
Cultural and recreation
1,293,246
67,940
361,450 (863,856)
Interest and fiscal charges
100,468
-
-
- (100,468)
Total governmental activities
14,552,352
1,608,600
345,937
994,546 (11,603,269)
Business -type activities:
Golf course
1,409,829
1,333,189
- (76,640)
Airport
1,038,361
457,318
702,154 121,111
Building
531,087
712,620
- 181,533
Total business -type activities
2,979,277
2,503,127
702,154 226,004
Total primary government
$ 17,531,629
$ 4,111,727 $
345,937 $ 1,696,700 $ (11,377,265)
continued...
28
CITY OF SEBASTIAN, FLORIDA
Statement of Activities
For the Year Ended September 30, 2015
Changes in net position
Net revenue (expense)
General revenues:
Property taxes, levied for general purposes
Sales and use taxes
Franchise fees
State shared revenues not restricted to specific programs
Interest earnings
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
Net position, beginning of year
Implementation of GASB 68 (Note 17)
Net position, end of year
Primary Government
Governmental Business -type
Activities Activities Total
$ (11,603,269) $ 226,004 $ (11,377,265)
3,594,210
3,594,210
5,555,270
5,555,270
1,241,515
1,241,515
2,365,137
- 2,365,137
65,256
5,368 70,624
240,179
20,602 260,781
2,988
(2,988) -
13,064,555 22,982 13,087,537
1,461,286 248,986 1,710,272
43,656,553 10,336,688 53,993,241
(1,432,244) - (1,432,244)
$ 43,685,595 $ 10,585,674 $ 54,271,269
concluded
The accompanying notes are an integral part of these basic financial statements.
WA
CITY OF SEBASTIAN, FLORIDA
Balance Sheet
Governmental Funds
September 30, 2015
Assets
Cash and cash equivalents
Investments
Accounts receivable, net
Due from other funds
Due from other governments
Deposits held in escrow
Inventories
Prepaid items
Advance to other funds
Total assets
Liabilities
Negative equity in pooled cash $ $ $ $ -
Accounts payable and accrued liabilities 410,997 8,493 249,168
Due to other governments 150,798 - -
Unearned revenue 62,812
Total liabilities 624,607 8,493 249,168
Fund balances (deficit)
Nonspendable 316,036 - -
Restricted 38,544 2,413,576 446,728
Committed - - -
Assigned 8,692
Unassigned 5,289,322 - - (44,010)
Total fund balances (deficit) 5,652,594 2,413,576 446,728 (44,010)
Total liabilities and fund balances $ 6,277,201 $ 2,413,576 $ 455,221 $ 205,158
The accompanying notes are an integral part of these basic financial statements.
30
Discretionary
Riverfront
Capital
General
Sales Tax
Redevelopment
Improvements
$ 3,211,046
$ 752,202
$ 358,515
$ 82,108
1,571,269
841,618
96,706
-
298,066
-
-
623,800
-
-
244,777
268,469
123,050
12,207
-
-
43,911
122,125
-
150,000
551,287
-
$ 6,277,201
$ 2,413,576
$ 455,221
$ 205,158
Liabilities
Negative equity in pooled cash $ $ $ $ -
Accounts payable and accrued liabilities 410,997 8,493 249,168
Due to other governments 150,798 - -
Unearned revenue 62,812
Total liabilities 624,607 8,493 249,168
Fund balances (deficit)
Nonspendable 316,036 - -
Restricted 38,544 2,413,576 446,728
Committed - - -
Assigned 8,692
Unassigned 5,289,322 - - (44,010)
Total fund balances (deficit) 5,652,594 2,413,576 446,728 (44,010)
Total liabilities and fund balances $ 6,277,201 $ 2,413,576 $ 455,221 $ 205,158
The accompanying notes are an integral part of these basic financial statements.
30
Nonmajor Total
Governmental Governmental
Funds Funds
$ 2,724,753 $ 7,128,624
317,286 2,826,879
- 298,066
- 623,800
147,634 783,930
- 12,207
43,911
122,125
701,287
$ 3,189,673 $ 12,540,829
$ 94,525 $ 94,525
43,827 712,485
- 150,798
62,812
138,352 1,020,620
928,758
1,244,794
1,321,483
4,220,331
815,688
815,688
-
8,692
(14,608)
5,230,704
3,051,321 11,520,209
$ 3,189,673 $ 12,540,829
31
CITY OF SEBASTIAN, FLORIDA
Reconciliation
Fund Balances for Governmental Funds
to Net Position of Governmental Activities
September 30, 2015
Fund balances - total governmental funds
Amounts reported for governmental activities in the statement of
net position are different because:
Capital assets used in governmental activities are not financial resources,
and therefore are not reported in the fund statement.
Capital assets not being depreciated
Capital assets being depreciated, net
Certain liabilities, such as notes payable, are not due and payable
in the current period, and therefore are not reported in the funds.
Notes payable
Compensated absences
Net other postemployment benefits liability
Contamination liability
Accrued interest on long-term debt
Certain pension -related amounts, such as the net pension liability and deferred amounts
are not due and payable in the current period or do not represent current financial
resources and therefore are not reported in the funds.
Net pension liability
Deferred inflows related to the net pension liability
Deferred outflows related to the net pension liability
Net position of governmental activities
The accompanying notes are an integral part of these basic financial statements.
32
$ 11,520,209
8,791,963
32,469,894
(6,041,000)
(1,465,409)
(24,726)
(91,200)
(37,285)
(2,150,078)
905,733
(192,506)
$ 43,685,595
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2015
Total revenues 10,480,367 2,945,332 334,310 137,091
Expenditures
Discretionary
Riverfront Capital
General
Sales Tax
Redevelopment Improvements
Revenues
General government
2,714,481
Taxes:
2,568
Public safety
Property
$ 3,297,790
$
$ 296,420 $
Public utility
2,638,711
-
Sales
-
2,916,092
Motor fuel
-
-
Franchise fees
1,241,515
Culture and recreation
Licenses and permits
147,219
-
Intergovernmental
2,515,809
137,091
Impact fees
-
-
-
Chargesforservices
320,955
Interest and fiscal charges
-
Fines
60,685
-
-
Investment earnings
25,110
29,240
1,890
Contributions and donations
48,124
-
-
Otherrevenues
184,449
(399,454)
36,000
Total revenues 10,480,367 2,945,332 334,310 137,091
Expenditures
Current:
General government
2,714,481
2,568
Public safety
4,649,075
-
Physical environment
11355,491
Transportation
929,412
-
Economic environment
161,545
Culture and recreation
885,194
-
Debt service:
Principal
-
Interest and fiscal charges
-
-
-
Capital outlay
346,168
26,096
484,782
Total expenditures
10,879,821
-
190,209
484,782
Revenues(under)over expenditures
(399,454)
2,945,332
144,101
(347,691)
Other financing sources (uses)
Transfers in
668,306
-
-
336,508
Transfers out
(349,590)
(3,528,170)
(77,427)
Total other financing sources (uses)
318,716
(3,528,170)
(77,427)
336,508
Net changes in fund balances
(80,738)
(582,838)
66,674
(11,183)
Fund balances (deficits), beginning of year
5,733,332
2,996,414
380,054
(32,827)
Fund balances (deficits), end of year
$ 5,652,594
$ 2,413,576 $
446,728 $
(44,010)
The accompanying notes are an integral part of these basic financial statements.
33
Nonmajor Total
Governmental Governmental
Funds Funds
$ $
3,594,210
143,215
2,638,711
258,459
2,916,092
633,096
633,096
-
1,241,515
-
147,219
90,050
2,742,950
281,450
281,450
1,076,440
1,397,395
2,350
63,035
9,016
65,256
-
48,124
21,148
241,597
2,113,550 16,010,650
2,717,049
17,268
4,666,343
143,215
1,498,706
258,459
1,187,871
-
161,545
8,200
893,394
1,567,000
1,567,000
108,678
108,678
2,276,284
3,133,330
4,379,104
15,933,916
(2,265,554) 76,734
3,984,912 4,989,726
(1,031,551) (4,986,738)
2,953,361 2,988
687,807 79,722
2,363,514 11,440,487
$ 3,051,321 $ 11,520,209
34
CITY OF SEBASTIAN, FLORIDA
Reconciliation
Net Changes in Fund Balances of Governmental Funds
to Change in Net Position of Governmental Activities
For the Year Ended September 30, 2015
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense.
Capital outlay
Depreciation expense
Loss on the sale of capital assets
Bond proceeds provide current financial resources to governmental funds
in the period issued, but issuing bonds increases long-term liabilities in the
statement of net position. Repayment of bond principal is an expenditure in the
governmental funds, but the repayment reduces long-term liabilities in the
statement of net position.
Principal payments on long-term liabilities
Some expenses reported in the statement of activities do not require the use of
current financial resources and therefore are not reported as expenditures in
governmental funds.
Change in accrued interest payable on long-term debt
Change in the accrual for compensated absences
Change in the accrual for other postemployment benefits
Change in the accrual for termination benefits
Change in the net pension liability and related deferred amounts
Change in net position of governmental activities
The accompanying notes are an integral part of these basic financial statements.
35
$ 79,722
3,133,330
(3,054,155)
(68,844)
1,567,000
8,210
(59,927)
(4,515)
3,427
(142,962)
$ 1,461,286
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - General Fund
For the Year Ended September 30, 2015
Total revenues 10,146,963 10,364,518 10,480,367 115,849
Expenditures
718,306 1,059,752 668,306
(391,446)
Transfers out
Actual Over
Current:
Original
Final
(382,095)
(Under) Final
General government
Budget
Budget
Actual
Budget
Revenues
4,540,791
4,703,357
4,649,075
(54,282)
Taxes:
1,252,991
1,408,506
1,355,491
(53,015)
Property
$ 3,295,350
$ 3,295,350
$ 3,297,790
$ 2,440
Public utility
2,673,000
2,673,000
2,638,711
(34,289)
Franchise fees
1,201,400
1,201,400
1,241,515
40,115
Licenses and permits
143,800
143,800
147,219
3,419
Intergovernmental
2,240,709
2,389,809
2,515,809
126,000
Charges for services
325,929
330,955
320,955
(10,000)
Fines
67,100
67,100
60,685
(6,415)
Investment earnings
25,500
25,500
25,110
(390)
Contributions and donations
12,500
32,500
48,124
15,624
Otherrevenues
161,675
205,104
184,449
(20,655)
Total revenues 10,146,963 10,364,518 10,480,367 115,849
Expenditures
718,306 1,059,752 668,306
(391,446)
Transfers out
(307,000) (358,941) (349,590)
Current:
Total other financing sources
411,306 700,811 318,716
(382,095)
Net changes in fund balances
General government
2,778,720
2,734,632
2,714,481
(20,151)
Public safety
4,540,791
4,703,357
4,649,075
(54,282)
Physical environment
1,252,991
1,408,506
1,355,491
(53,015)
Transportation
957,812
967,820
929,412
(38,408)
Culture and recreation
917,755
918,942
885,194
(33,748)
Capital outlay
110,200
332,072
346,168
14,096
Total expenditures 10,558,269 11,065,329 10,879,821 (185,508)
Revenues over (under) expenditures (411,306) (700,811) (399,454) 301,357
Other financing sources
Transfers in
718,306 1,059,752 668,306
(391,446)
Transfers out
(307,000) (358,941) (349,590)
9,351
Total other financing sources
411,306 700,811 318,716
(382,095)
Net changes in fund balances
- - (80,738)
(80,738)
Fund balance, beginning of year 5,733,332 5,733,332 5,733,332
Fund balance, end of year $ 5,733,332 $ 5,733,332 $ 5,652,594 $ (80,738)
The accompanying notes are an integral part of these basic financial statements.
36
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Discretionary Sales Tax Special Revenue Fund
For the Year Ended September 30, 2015
Revenues
Taxes:
Sales
Investment earnings
Total revenues
Other financing sources (uses)
Transfers in
Transfers out
Total other financing uses
Net changes in fund balance
Fund balance, beginning of year
Fund balance, end of year
Original Final
Budget Budget
Actual Over
(Under) Final
Actual Budget
$ 2,766,832
$ 2,766,832
$ 2,916,092
$ 149,260
26,095
26,095
29,240
3,145
2,792,927
2,792,927
2,945,332
152,405
410,997
1,274,995
-
(1,274,995)
(3,203,924)
(4,067,922)
(3,528,170)
539,752
(2,792,927)
(2,792,927)
(3,528,170)
(735,243)
-
-
(582,838)
(582,838)
2,996,414
2,996,414
2,996,414
$ 2,996,414 $ 2,996,414 $ 2,413,576 $ (582,838)
The accompanying notes are an integral part of these basic financial statements.
37
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Riverfront Redevelopment Special Revenue Fund
For the Year Ended September 30, 2015
Revenues
Taxes:
Property
Investment earnings
Otherrevenues
Total revenues
Expenditures
Current:
General government
Economic environment
Capital outlay
Total expenditures
Revenues over (under) expenditures
Other financing uses
Transfers out
Net changes in fund balance
Fund balance, beginning of year
Fund balance, end of year
Actual Over
Original Final (Under) Final
Budget Budget Actual Budget
$ 287,844 $ 287,844 $ 296,420 $ 8,576
718 718 1,890 1,172
36,000 36,000 36,000 -
324,562 324,562 334,310 9,748
2,500 2,500 2,568 68
268,135 274,869 161,545 (113,324)
- 26,266 26,096 (170)
270,635 303,635 190,209 (113,426)
53,927 20,927 144,101 123,174
(160,000) (338,774) (77,427) 261,347
(106,073) (317,847) 66,674 384,521
380,054 380,054 380,054 -
$ 273,981 $ 62,207 $ 446,728 $ 384,521
The accompanying notes are an integral part of these basic financial statements.
38
CITY OF SEBASTIAN, FLORIDA
Statement of Net Position
Proprietary Funds
September 30, 2015
Noncurrent assets:
Business -type Activities - Enterprise Funds
Golf
Capital assets:
Nonmajor -
29,574
84,629
Course
Airport
Building
Total
Assets
19,436
Buildings
332,748
6,009,116
Current assets:
6,341,864
Improvements other than buildings
245,510
1,644,127
Cash and cash equivalents
$ 5,925
$ 17,014
$ 376,498 $
399,437
Investments
6,649
-
710,027
716,676
Accounts receivable
-
5,335
-
5,335
Due from other governments
-
650,005
(1,501,331)
650,005
Inventories
12,837
12,746
-
25,583
Deposits held in escrow
493
616
493
1,602
Prepaid items
3,661
7,642
3,322
14,625
Total current assets
29,565
693,358
1,090,340
1,813,263
Noncurrent assets:
Capital assets:
71,965
29,574
84,629
186,168
Land
-
9,060
10,376
19,436
Buildings
332,748
6,009,116
-
6,341,864
Improvements other than buildings
245,510
1,644,127
-
1,889,637
Machinery and equipment
385,833
741,099
79,538
1,206,470
Infrastructure
1,100,951
7,340,638
-
8,441,589
Construction in process
281
343,658
343,939
Less accumulated depreciation
(1,501,331)
(5,952,869)
(58,589)
(7,512,789)
Total noncurrent assets
563,992
10,134,829
31,325
10,730,146
Total assets
593,557
10,828,187
1,121,665
12,543,409
Liabilities
Current liabilities:
Accounts payable and accrued liabilities
22,601
104,386
16,204
143,191
Due to other funds
133,800
490,000
-
623,800
Due to other governments
5,188
891
5,578
11,657
Unearned revenues
60,645
9,392
8,352
78,389
Current portion of notes payable
49,861
-
-
49,861
Total current liabilities
272,095
604,669
30,134
906,898
Non-current liabilities:
Compensated absences, net of current portion
71,965
29,574
84,629
186,168
Advance from other fund
-
701,287
-
701,287
Notes payable
162,390
-
-
162,390
Net other postemployment benefit obligation
301
158
533
992
Total non-current liabilities
234,656
731,019
85,162
1,050,837
Total liabilities
506,751
1,335,688
115,296
1,957,735
Net position
Net investment in capital assets 351,741 10,134,829 31,325 10,517,895
Unrestricted (deficit) (264,935) (642,330) 975,044 67,779
Total net position $ 86,806 $ 9,492,499 $ 1,006,369 $ 10,585,674
The accompanying notes are an integral part of these basic financial statements.
W
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds
For the Year Ended September 30, 2015
Operating revenues
Charges for fees and rents:
Building permit fees
Golf course fees
Rents
Otherrevenues
Total operating revenues
Operating expenses:
Salaries, wages and employee benefits
Contractual services, materials and supplies
Depreciation
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses)
Investment (expense) income
Interest expense
Gain on disposal of capital assets
Total nonoperating revenues (expenses)
Income (loss) before capital contributions and transfers
Capital contributions
Transfers in
Transfers out
Change in net position
Net position, beginning of year
Net position, end of year
Business -type Activities - Enterprise Funds
Golf
Nonmajor -
Course
Airport
Building
Total
$ -
$ $
712,620
$ 712,620
1,292,575
-
1,292,575
29,139
313,975
343,114
11,475
143,343
-
154,818
1,333,189
457,318
712,620
2,503,127
344,887
117,121
428,455
890,463
929,593
239,113
100,487
1,269,193
126,275
662,726
2,145
791,146
1,400,755
1,018,960
531,087
2,950,802
(67,566)
(561,642)
181,533
(447,675)
948
(230)
4,650
5,368
(9,298)
(19,401)
-
(28,699)
224
20,602
-
20,826
(8,126)
971
4,650
(2,505)
(75,692)
(560,671)
186,183
(450,180)
-
702,154
-
702,154
141
129,744
129,885
-
-
(132,873)
(132,873)
(75,551)
271,227
53,310
248,986
162,357
9,221,272
953,059
10,336,688
$ 86,806
$ 9,492,499 $
1,006,369
$ 10,585,674
The accompanying notes are an integral part of these basic financial statements.
40
CITY OF SEBASTIAN, FLORIDA
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2015
Cash flows from operating activities
Cash received from customers and users
Cash payments to suppliers
Cash payments for employee services
Net cash provided (used) by operating activities
Cash flows from noncapital financing activities
Interest paid on advance from other fund
Cash payments to other funds
Cash receipts from other funds
Net cash provided (used) by noncapital
financing activities
Cash flows from capital and related
financing activities
Repayment of long term debt
Acquisition and construction of capital assets
Proceeds from sale of capital assets
Receipts from capital contributions
Net cash used by capital and
related financing activities
Cash flows from investing activities
Sale (purchase) of investments
Investment income (expense)
Net cash provided by (used in) investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
Business -type Activities - Enterprise Funds
Golf Nonmajor -
Course Airport Building Total
$ 1,355,607 $
(69,999) $
712,508
$ 1,998,116
(934,915)
(181,971)
(97,708)
(1,214,594)
(334,444)
(116,257)
(449,570)
(900,271)
88,730
86,248
(368,227)
165,230
(116,749)
(9,298) (19,401) (28,699)
- (132,873) (132,873)
492,120 492,120
(9,298) 472,719 (132,873) 330,548
(72,453) (72,453)
(5,899) (833,972) (29,369) (869,240)
224 20,602 20,826
- 702,154 702,154
(78,128) (111,216) (29,369) (218,713)
88,960
- (342,405)
(253,445)
948
(230) 4,650
5,368
89,908
(230) (337,755)
(248,077)
88,730
(6,954) (334,767)
(252,991)
(82,805) 23,968 711,265 652,428
$ 5,925 $ 17,014 $ 376,498 $ 399,437
41
continued...
CITY OF SEBASTIAN, FLORIDA
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2015
The accompanying notes are an integral part of these basic financial statements.
42
Business -type Activities - Enterprise Funds
Golf
Nonmajor -
Course
Airport
Building
Total
Cash flow from operating activities:
Operating income (loss)
$ (67,566)
$ (561,642)
$ 181,533 $
(447,675)
Adjustments to reconcile operating income to net
cash provided (used) by operating activities:
Depreciation expense
126,275
662,726
2,145
791,146
Changein:
Accounts receivable
24,345
74
225
24,644
Inventories
(10,448)
19,200
-
8,752
Due from other governments
-
(530,335)
-
(530,335)
Prepaid items
4
155
(124)
35
Accounts payable
5,122
37,787
2,903
45,812
Due to other governments
(570)
(1,034)
346
(1,258)
Unearned revenues
(1,357)
3,978
(683)
1,938
Accrued compensated absences
10,388
835
(21,212)
(9,989)
Net other postemployment benefit obligation
55
29
97
181
Total adjustments
153,814
193,415
(16,303)
330,926
Net cash provided (used) by operating activities
$ 86,248
$ (368,227)
$ 165,230 $
(116,749)
concluded
The accompanying notes are an integral part of these basic financial statements.
42
CITY OF SEBASTIAN, FLORIDA
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2015
Assets
Cash and cash equivalents
Receivables:
Interest and dividends
Investments, at fair value:
Local government surplus trust funds investment pools
Money market funds
United States treasuries
United States agencies
Mortgage obligations
Municipal obligations
Domestic corporate bonds
Domestic corporate equities
Foreign corporate equities
Total investments
Total assets
Liabilities
Prepaid City contribution
Refunds payable
Total liabilities
Net position
Held in trust for pension benefits
Pension
Trust
Agency
Police
Officers'
Performance
Pension
Deposits
$ 61,512 $ 32,841
29,986
- 73,750
290,970
511,954 -
197,102
14,750
142,597
2,662,169
7,183,933
197,483 -
11,200,958 73,750
11,292,456 106,591
8,429 -
- 106,591
$ 8,429 $ 106,591
$ 11,284,027
The accompanying notes are an integral part of these basic financial statements.
43
CITY OF SEBASTIAN, FLORIDA
Statement of Changes in Fiduciary Net Position
Fiduciary Fund - Pension Trust
For the Year Ended September 30, 2015
Additions
Contributions:
Employer
Plan members
State
Total contributions
Investment income:
Net decrease in fair value of investments
Interest and dividends
Total investment income
Investment expenses
Net investment earnings
Total additions
Deductions
Benefits
Refunded contributions
Administrative expenses
Total deductions
Change in net position
Net position, beginning of year
Net position, end of year
Police
Officers'
Pension
$ 320,179
161,270
145,700
627,149
(221,098)
254,062
32,964
(93,290)
(60,326)
566,823
489,100
7,263
39,673
536,036
30,787
11,253,240
$ 11,284,027
The accompanying notes are an integral part of these basic financial statements.
44
NOTES TO FINANCIAL STATEMENTS
45
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Sebastian (the "City"), a Florida Municipal Corporation, was incorporated in 1924 under Sections
1826-1832 of the Revised Florida Statutes. The City has a population of 22,622 living in an area of
approximately 14.6 square miles. The governing body is a five member elected City Council with a mayor
elected from the five members. The City Council appoints the City Manager who is responsible for the
administration of all City services.
The financial statements of the City have been prepared in conformity with generally accepted accounting
principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is
the accepted standard setting body for establishing governmental accounting and financial reporting
principles. The more significant of the City's accounting policies are described below.
Reporting Entity
As required by generally accepted accounting principles, these financial statements present the government
and its component units, entities for which the City is financially accountable. Blended component units,
although legally separate entities, are, in substance, part of the government's operations and as such, data
from these units are combined with data of the primary government. Discretely presented component units,
on the other hand, are reported in a separate column in the combined financial statements to emphasize
that they are legally separate from the government. The City has no discretely presented component units.
Blended Component Units
Blended component units are a legally separate entity from the City but is so intertwined with the City that
it is, in substance, the same as the City. Discretely presented component units are entities that are legally
separate from the City but for which the City is financially accountable, or their relationship with the City is
such that exclusion would cause the City's financial statements to be misleading or incomplete. The City has
two component units are blended with the primary government for financial statement purposes because the
component unit's governing body is substantially the same as the City Council and/or there is a financial
benefit/burden relationship between the primary government and the component unit.
Community Redevelopment Agency (CRA) - The governing body of the CRA is identical to the Sebastian City
Council and there is a benefit/burden relationship to the City. The CRA is accounted for in a special revenue
fund entitled "Riverfront Redevelopment." F.S. Section 163.387(8) requires an independent audit of the fund
each fiscal year and a report of such audit. The City has presented the CRA as a major fund of the City to
satisfy this requirement simply due to the scope of the audit for a major fund is broader than a non -major
fund.
City of Sebastian Police Officers' Pension Plan - The City Council only appoints two of the five members of
the governing board, but it is financially responsible for funding the police officers' pension benefits. The City
of Sebastian Police Officers' Pension Trust Fund only exists to provide pension benefits to City of Sebastian
police officers. It is accounted for as a Pension Trust fund entitled "Police Officers' Pension".
46
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Government -wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the nonfiduciary activities of the primary government and its
component units. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business -type activities, which rely to a significant extent on fees and
charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include (1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment
and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among program revenues are
reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds,
even though the latter are excluded from the government -wide financial statements. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements.
Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the
timing of related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by
the provider have been met.
Agency funds are custodial in nature and do not present results of operations or have a measurement focus.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
government considers revenues to be available if they are collected within 60 days of the end of the current
fiscal period, and expenditure -driven grants which must be collected within one year. Expenditures generally
are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures,
as well as expenditures related to compensated absences and claims and judgments, are recorded only when
payment is due.
Property taxes, intergovernmental revenue, licenses, and interest associated with the current fiscal period
are all considered to be susceptible to accrual and as such have been recognized as revenues of the current
fiscal period. All other revenue items are considered to be measurable and available only when cash is
received by the government.
47
CITY OF SEBASTIAN, FLORIDA
M Notes to Financial Statements
The City reports the following major governmental funds:
The General Fund is the government's primary operating fund. It accounts for all the financial resources of
the general government, except those accounted for and reported in another fund.
The Discretionary Sales Tax Fund accounts for the financial resources used for infrastructure improvements
and equipment purchases.
The Riverfront Redevelopment Fund accounts for tax increment revenues that are legally restricted for the
redevelopment of the City's riverfront area.
The Capital Improvements Fund accounts for financial resources that are restricted, committed or assigned
to construction projects.
The City reports the following major proprietary funds:
The Golf Course Fund accounts for the activities of the municipal golf course.
The Airport Fund accounts for the activities of the municipality's general aviation airport.
The Building Fund accounts for the activities associated with the building permit and inspection program.
Additionally, the City reports the following fund types:
Special revenue funds are used to account for and report the proceeds of specific revenue sources that are
restricted or committed to expenditure for specified purposes other than debt service or capital projects.
Debt service funds are used to account for and report financial resources that are restricted, committed, or
assigned to expenditure for principal and interest.
Capital projects funds are used to account for and report financial resources that are restricted, committed,
or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities
and other capital assets.
The permanent fund is used to record the activity and balance of the Cemetery Trust which provides funds
for perpetual care of cemetery lots.
The pension trust fund accounts for the activities of the Police Officer's Retirement System, which
accumulates resources for pension benefit payments to qualified police officers.
The performance deposits agency fund accounts for deposits placed by bidders and developers to guarantee
performance pursuant to bid or contract. These funds are held by the City as agent for individuals and
businesses.
As a general rule, the effect of interfund activity has been eliminated from the government -wide financial
statements. Exceptions to this general rule are payments in lieu of taxes and various other functions of the
government. Elimination of these charges would distort the direct costs and program revenues reported for
the various functions concerned. The General Fund provides certain central services to other funds of the
City which are presented as program expenses in the funds receiving services. The related General Fund
revenue has been netted against program expense in the government -wide statement of activities.
48
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues
and expenses generally result from providing services and producing and delivering goods in connection with
a proprietary fund's principal ongoing operations. The principal operating revenues of the enterprise funds
are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of
sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses
not meeting this definition are reported as nonoperating revenues and expenses.
Restricted net position represents resources that are subject to restrictions beyond the government's
control. The restrictions may be externally imposed or imposed by law. When both restricted and
unrestricted resources are available for use, it is the government's policy to use restricted resources first,
then unrestricted resources as they are needed.
Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Equity
Deposits and Investments
The City considers cash on hand and demand deposits, restricted cash deposits, and short-term investments
with maturities of three months or less when purchased to be cash for the statement of cash flows. Cash in
excess of current requirements is invested in various interest-bearing securities and disclosed as part of the
City's investments.
Investments consist of U.S. Treasury Securities, U.S. Government Agency Securities, common stock,
guaranteed investment contracts and the Local Government Surplus Funds Trust Fund Investment pool. The
Local Government Surplus Funds Trust Fund is administered by the Florida State Board of Administration,
which is not a registrant with the Securities and Exchange Commission. However, the Board has adopted
operating procedures consistent with the requirements for a 2a-7 fund or accounts. In accordance with the
regulations of 2a-7 like pools, the City's share of investments held at the State Board of Administration are
reported at amortized cost, which approximates fair value. This pool is regulated by the State and the fair
value of the position in the pool is the same as the value of the pool share. Investment earnings are allocated
to the participating funds at the end of each month based upon the ratio of each participant's investment to
the total pooled investments. Other investments, including the Police Officers' Pension Fund, are reported at
their fair value based on the quoted market price or the best available information.
Internal Balances
Transactions between funds that are representative of [ending/ borrowing arrangements outstanding at the
end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of
interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All
other outstanding balances between funds are reported as "due to/from other funds." Any residual balances
outstanding between the governmental activities and business -type activities are reported in the government
wide financial statements as "internal balances."
Advances between funds are offset by nonspendable fund balance in General Fund and restricted fund
balance in other applicable governmental funds to indicate they are not available for appropriation and are
not expendable available financial resources.
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Restricted Assets
Certain amounts reported as cash and cash equivalents are classified as restricted assets. These include
balances in the debt service funds that are set aside to meet bonded debt requirements, balances in the
capital projects funds to be used for the payment of project costs and balances in the Cemetery Fund that
are either not permitted to be spent or can only be spent for items incidental to cemetery expansions. The
amount of the Cemetery Fund investments is also classified as restricted assets and reported as permanently
restricted investments.
Receivables and Payables
All trade and property tax receivables are shown net of an allowance for uncollectibles, as applicable.
Amounts due from other governments include amounts due from grantors for specific programs and capital
projects. Program grants and capital grants for capital assets are recorded as receivables and revenues at
the time reimbursable project costs are incurred. Revenues received in advance of project costs being
incurred are deferred. Receivables consist of trade receivables, due from other governments and interest
receivable and are recorded at the net realizable value. As of September 30, 2015, the City has no allowance
for doubtful accounts, since all receivables are considered collectible.
Other Assets
Inventories are valued at cost using the average cost method. Inventory in the General Fund consists of
materials and supplies held for consumption. The cost is recorded as an expenditure/ expense at the time the
individual inventory items are consumed. Inventory in the Golf Course Fund consists of supplies held for
resale.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both the government -wide and fund financial statements.
Costs associated with the issuance or refunding of bonds payable are reported as assets the in proprietary
funds and government -wide statements. These costs are amortized over the life of the related debt utilizing
the straight-line method.
Capital Assets
Capital assets, which include land, buildings, improvements, equipment, and infrastructure assets (e.g.,
roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business -type
activities columns in the government -wide financial statements. The City defines capital assets as assets with
an initial, individual cost of more than $750 and an estimated useful life in excess of one year. Such assets
are recorded at historical cost, if purchased, and at 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.
50
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
asset lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business -type activities, if any, is included as part
of the capitalized value of the asset constructed.
Capital assets are depreciated using the straight-line method over the following estimated useful lives:
Years
Buildings and improvements
10-40
Public domain infrastructure
40-50
System infrastructure
15-30
Improvements other than buildins
10-40
Machinery, equipment and other
5-15
Airport runways
20
Deferred Outflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element represents a consumption of net
position that applies to future periods and so will not be recognized as an outflow of resources until then.
The City reports deferred outflows of resources related to the net pension liability. A portion of these costs
represent contributions to the plan subsequent to the plan measurement date. More detailed information
can be found in Note 13.
Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation and sick leave benefits
and these are accounted for using the termination payment method. All vacation and sick leave amounts are
accrued in the government -wide and proprietary financial statements. A liability for these amounts is
reported in governmental funds only if they have matured, for example, as a result of employee resignations
and retirements.
Unearned Revenue
Governmental funds report unearned revenue in connection with resources that have been received, but not
yet earned.
Deferred Inflows of Resources
In addition to liabilities, the statement of financial position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element represents an acquisition of net
position that applies to future periods and so will not be recognized as an inflow of resources until that time.
The governmental funds report unavailable revenues, which arises only under the modified accrual basis of
accounting, from three sources: property taxes, loans receivable and pension. These amounts are deferred
and recognized as an inflow of resources in the period that the amounts become available.
51
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Long-term Obligations
In the government -wide financial statements and proprietary fund types in the fund financial statements,
long term debt and other long term obligations are reported as liabilities in the applicable governmental
activities, business type activities, or proprietary fund type statement of net position.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as
bond issuance costs, during the current period. The face amount of debt issued is reported as other financing
sources. Premiums received on debt issuances are reported as other financing sources while discounts on
debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual
debt proceeds received, are reported as debt service expenditures.
Fund Equity
Governmental funds report nonspendable fund balance for amounts that cannot be spent because they are
either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Restricted
fund balance is reported when externally imposed constraints are placed on the use of resources by grantors,
contributors, or laws or regulations of other governments. Committed fund balance is reported for amounts
that can only be used for specific purposes pursuant to constraints imposed by formal action of the City
Council (the government's highest level of decision-making authority). A formal resolution of the City Council
is required to establish, modify, or rescind a fund balance commitment. The City reports assigned fund
balance for amounts that are constrained by the government's intent to be used for specific purposes, but
are neither restricted nor committed. Unassigned fund balance is the residual classification for the General
Fund.
When the government incurs an expenditure for purposes for which various fund balance classifications can
be used, it is the government's policy to use restricted fund balance first, then committed fund balance,
assigned fund balance, and finally unassigned fund balance.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the amounts
reported in the financial statements and accompanying notes. Actual results may differ from those
estimates.
2. BUDGETARY INFORMATION
Budgets are prepared annually on a modified accrual basis with encumbrance accounting for all governmental
funds except the capital project funds, which are approved on a "life of the project basis", and the
permanent fund, which is not budgeted. All annual appropriations lapse at year end.
On or before the third Friday in May of each year, all agencies of the government submit requests for
appropriations to the government's City Manager so that a budget may be prepared. Before July 31, the
proposed budget is presented to the government's council for review. The council holds budget workshops
and public hearings and a final budget must be prepared and adopted no later than September 30.
52
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is
employed as an extension of formal budgetary integration in the General, Special Revenue, Debt Service, and
Capital Projects funds. Encumbrances outstanding at year end are carried forward and reappropriated to the
next year's budget.
Actual results of operations presented in accordance with U.S. generally accepted accounting principles
(GAAP basis) and the City's accounting policies do not recognize encumbrances as expenditures until the
period in which the actual goods or services are received and a liability is incurred. It is necessary to include
budgetary encumbrances to reflect actual revenues and expenditures on a basis consistent with the City's
legally adopted budget.
3. DEPOSITS AND INVESTMENTS
Following is a reconciliation of deposit and investment balances as of September 30, 2015:
Statement of Net Position
Cash and cash equivalents $ 5,808,915
Temporarily restricted cash and cash equivalents 1,624,621
Investments 3,469,555
Permanently restricted investments 74,000
Statement of Fiduciary Net Position
Police Officers' Pension:
Cash and cash equivalents 61,512
Investments 11,200,958
Agency funds:
Cash and cash equivalents 32,841
Investments 73,750
Total $ 22,346,152
Deposits and investments
Bank deposits:
Checking and savings accounts $ 7,525,459
Investments:
Investments, at fair value 3,617,305
Police officers' pension fund investments 11,2005958
Cash on hand 2,430
Total $ 22,346,152
Custodial Credit Risk - Deposits. Custodial credit risk is the risk that, in the event of a bank failure, the
City's deposits might not be returned. At September 30, 2015, the carrying amount of the City of Sebastian's
deposits with banks was $7,525,459 and the bank balance was $7,561,322. All the deposits were covered by
the FDIC or collateralized in accordance with the "Florida Security for Public Deposits Act". Under the Act,
every qualified public depository shall deposit with the Treasurer eligible collateral having a market value
equal to 50% of the average daily balance for each month that all public deposits are in excess of any
applicable deposit insurance. If the public deposits exceed the total amount of the regulatory capital
accounts of a bank or the regulatory net worth of a savings association, the required collateral shall have a
market value equal to 125% of the deposits.
53
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Custodial Credit Risk - Investments. On April 23, 2003, Sebastian City Council formally adopted an
investment policy pursuant to Section 218.415, Florida Statutes that established permitted investments,
asset allocation limits and issuer limits, credit ratings requirements and maturity limits for all investments
except the Pension Trust Funds. The City maintains a common cash and investment pool for the use of all
funds, except the Pension Trust Funds, which are held with third party trustees and are governed by rules
established by Florida Statute Chapter 185.
Investment holdings during the year included United States Government Agencies which were reported at fair
value in accordance with GASB Statement No.31 "Accounting and Financial Reporting for Certain Investments
and for External Investment Pools". These investments were held in trust by the City's bank depository in the
City's name or by the Custodian of the Pension Trust Funds.
Section 218.415, Florida Statutes, limits the types of investments that the City can invest in unless specially
authorized in the City's investment policy. The City's formal investment policy, for all investments except the
Pension Trust Fund, allows for the following investments: Florida Local Government Surplus Funds Trust
Fund, United States Government Securities, United States Government Agencies, Federal Instrumentalities,
Interest Bearing Time Deposit or Saving Accounts, Repurchase Agreements, Commercial Paper, High Grade
Corporate Notes, Bankers' Acceptances, State and/or Local Government Taxable and/or Tax -Exempt Debt,
Registered Investment Companies (Money Market Mutual Funds), and Intergovernmental Investment Pool.
Florida Statutes Chapter 185 regulates the types of investment that may be held by the Police Pension Trust
Fund. The investment guidelines have been augmented by City ordinance that have adopted specific
investment policies. Compliance with the policies and guidelines has been evaluated by the pension board.
As of September 30, 2015, the City had the following investments and effective duration presented in terms
of years:
Investment Type
General investments
Local government surplus
funds trust fund ("SBA")
Investment Maturity (Years)
Fair Value Less Than 1 From 1-3 From 4-6 Over 7
$ 3,617,305 $ 3,617,305 $ $ $
Police officers' pension fund investments
Money market
$ 290,970 $
290,970 $
- $
-
$ -
United States treasuries
511,954
-
220,927
145,610
145,417
United States agencies
197,102
24,478
19,367
153,257
Mortgage obligations
14,750
-
-
-
14,750
Municipal obligations
142,597
51,711
-
-
90,886
Domestic corporate bonds
2,662,169
-
700,853
808,948
1,152,368
Domestic corporate equities
7,183,933
7,183,933
-
-
-
Foreign corporate equities
197,483
197,483
-
-
-
$ 11,200,958 $
7,724,097 $
946,258 $
973,925
$ 1,556,678
54
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Interest Rate Risk. The City's investment policy limits interest rate risk by attempting to match investment
maturities with known cash needs and anticipated cash flow requirements. Investment maturities shall not
exceed thirty-six (36) months. Investments of construction funds shall have a term appropriate to the need
for funds and in accordance with debt covenants.
Credit Risk. The City investment policy that covers all investments, except the Pension Trust Fund, permits
investments in the following securities, which are limited to credit quality ratings from nationally recognized
agencies as follows:
Mutual funds shall be rated "m" or "AAm-G" or better by Standard Et Poor's, or the equivalent by another
rating agency. State and/or local government taxable and/or tax-exempt debt, general obligation and/or
revenue bonds, rated at least "Aa" by Moody's and "AA" by Standard Et Poor's for long-term debt, or rated at
least "MIG -2" by Moody's and 'SP -2" by Standard Et Poor's for short-term debt. Bankers' acceptances issued by a
domestic bank or a federally chartered domestic office of a foreign bank, which are eligible for purchase by
the Federal Reserve System, at the time of purchase, the short-term paper is rated, at a minimum, "P -I" by
Moody's Investors Services and "A -I" Standard Et Poor's. Commercial paper of any United States company that
is rated, at the time of purchase, "Prime -1" by Moody's and "A -I" by Standard Et Poor's (prime commercial
paper). Corporate notes issued by corporations organized and operating within the United States or by
depository institutions licensed by the United States that have a long-term debt rating, at the time of
purchase, at a minimum "Aa" by Moody's and a minimum long term debt rating of "AA" by Standard Et Poor's.
As of September 30, 2015, the City's investment securities, for all investments except the Pension Trust Fund,
were all individually rated AAAm by Standard Et Poor's.
As of September 30, 2015, the City had $3,617,305 invested in the State Board of Administration's Local
Government Surplus Trust Funds Investment Pool, which consist of accounts in Pool A. Pool A had a rating by
Standard and Poor's Rating Services as "AAAm" on September 30, 2015 and amounts may be withdrawn
without penalty.
Investment in the City's pension trust funds are limited by State Statutes Chapter 185 and by an investment
policy adopted by the fund's Board of Trustees on June 24, 2005. The allowable investment instruments
include: United States government and agency issues, bankers acceptances and certificates of deposit by
United States banks, savings accounts with banks or other financial institutions incorporated in the United
States and commercial paper rated A-2 or P-2 or higher by Moody's or Standard and Poors. In addition,
common stocks of corporations listed on a recognized national stock exchange, plus issues convertible into
common stock are also allowed. No more than ten percent (10%) of the cost value of total assets may be
invested in foreign securities.
Custodial Credit Risk. The City's investment policy pursuant to Section 218.415(18), Florida Statutes requires
securities, with the exception of certificates of deposits, shall be held with a third party custodian; and all
securities purchased by, and all collateral obtained by the City should be properly designated as an asset of
the City. The securities must be held in an account separate and apart from the assets of the financial
institution. A third party custodian is defined as any bank depository chartered by the Federal Government,
the State of Florida, or any other state or territory of the United States which has a branch or principal place
of business in the State of Florida as defined in Section 658.12, Florida Statutes, or by a national association
organized and existing under the laws of the United States, which is authorized to accept and execute trusts
and which is doing business in the State of Florida. Certificates of deposits maintained by book -entry at the
issuing bank shall clearly identify the City as the owner.
55
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Concentration of Credit Risk. The City's investment policy has established asset allocation and issuer limits
on the following investments, which are designed to reduce concentration of credit risk of the City's
investment portfolio.
A maximum of 100% of available funds may be invested in the SBA and in the United States Government
Securities, 50% of available funds may be invested in United States Government agencies with a 25% limit on
individual issuers, 80% of available funds may be invested in Federal Instrumentalities with a 40% limit on
individual issuers, 25% of available funds may be invested in non-negotiable interest bearing time certificates
of deposits with a 15% limits on individual issuers, 50% of available funds may be invested in repurchase
agreements excluding one (1) business day agreements and overnight sweep agreements with a 25% limit on
anyone institution, 25% of available funds may be directly invested in prime commercial paper with a 10%
limit on individual issuers, 15% of available funds may be directly invested in corporate notes with a 5% limit
on individual issuers, 25% of available funds may be directly invested in Bankers' Acceptances with a 10% limit
on individual issuers, 20% of available funds may be invested in taxable and tax-exempt debts, 50% of
available funds may be invested in money market mutual fund with a 25% limit on individual issuers, 10% of
available funds may be invested in intergovernmental investment pools.
The City's pension trust funds investment policy adopted by the fund's Board of Trustees has established asset
allocation and issuer limits on the following investments, which are designed to focus on performance. A
maximum of 100% of available funds may be invested in fixed income securities and a maximum of 60% of
available funds may be invested in equity securities.
As of September 30, 2015, the City had the following issuer concentration based on fair value:
General Investments Pension Investments
Percentage of Percentage
Issuer Amount Portfolio Amount of Portfolio
Local government surplus funds
trust fund ("SBA")
$ 3,617,305 100.00%
$ -
0.00%
Money market
- 0.00%
290,970
2.60%
United States treasuries
0.00%
511,954
4.57%
United States agencies
0.00%
197,102
1.76%
Mortgage obligations
0.00%
14,750
0.13%
Municipal obligations
0.00%
142,597
1.27%
Domestic corporate bonds
0.00%
2,662,169
23.77%
Domestic corporate equities
0.00%
7,183,933
64.14%
Foreign corporate equities
0.00%
197,483
1.76%
Total $ 3,617,305 100.00% $ 11,200,958 100.00%
56
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
4. RECEIVABLES
Receivables are comprised of the following at year-end:
Accounts receivable
Due from other governments
5. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Governmental Business -type Total
Activities Activities
$ 298,066 $ 5,335 $ 303,401
783,930 650,005 1,433,935
$ 1,081,996 $ 655,340 $ 1,737,336
Accounts payable and accrued liabilities are comprised of the following at year-end:
Accounts payable
Accrued liabilities
Due to other governments
6. INTERFUND RECEIVABLES AND PAYABLES AND TRANSFERS
Governmental
Business -type
Total
6D Activities
Activities
$ 490,159
$ 120,249
$ 610,408
222,326
22,397
244,723
150,798
11,657
162,455
$ 863,283
$ 154,303
$ 1,017,586
The composition of interfund balances as of September 30, 2015, was as follows:
Due to and from primary government funds
Due from Due to Other
Other Funds Funds
General Fund $ 623,800 $ -
Law Enforcement Forfeiture - 490,000
Golf Course 133,800
Airport -
$ 623,800 $ 623,800
Advances to and from primary government funds
Advance from Advance to
Other Funds Other Funds
General Fund $ $ 150,000
Discretionary Sales Tax 551,287
Airport 701,287 -
$ 701,287 $ 701,287
57
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
These balances resulted from the time lag between the dates that (1) interfund goods and services are
provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3)
payments between funds are made.
The balance of $551,287 advanced to the airport fund from the discretionary sales tax fund is to be repaid
over a thirty year period in accordance with Resolution No. R-08-20 for the initial $285,000 advance and with
Resolution No. R-10-22 authorizing an additional $290,000 advance. In relationship to these advances,
$23,713 has been repaid as of September 30, 2015. The balance of $150,000 advanced to the airport from
general fund represents a cash loan made in 2007 without any specified terms for repayment.
For the year ended September 30, 2015, interfund transfers consisted of the following:
Transfers In
General Fund
Capital Improvements
Fund
Nonmajor Governmental
Funds
Airport Fund
Golf Course
Transfers out
Riverfront Nonmajor
General Discretionary Redevelopment Governmental
Fund Sales Tax Fund Fund Funds Building Fund Totals
$ - $ - $ 60,000 $ 503,012 $ 105,294 $ 668,306
233,849 900 101,759 336,508
349,449 3,164,577 16,527 426,780 27,579 3,984,912
- 129,744 - - - 129,744
141 - - - - 141
$ 349,590 $ 3,528,170 $ 77,427 $ 1,031,551 $ 132,873 $ 5,119,611
Transfers are used to: (1) move revenues from the fund that is required to collect them to the fund that is
required or allowed to expend them and (2) move receipts restricted to or allowed for debt service from the
funds collecting the receipts to the debt service fund as required by debt covenants.
58
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
7. CAPITAL ASSETS
Capital asset activity for the primary government for the year ended September 30, 2015, was as follows:
Beginning Ending
Balance Additions Disposals Balance
Governmental activities
Capital assets, not being depreciated:
Land
$ 8,319,588 $
- $
$ 8,319,588
Construction in progress
82,169
390,206
472,375
8,401,757
390,206
8,791,963
Capital assets, being depreciated:
Buildings
12,545,658
64,150
12,609,808
Non -building improvements
6,730,855
210,346
(107,955)
6,833,246
Machinery and equipment
71911,956
1,138,425
(358,877)
8,691,504
Infrastructure
37,856,694
1,330,203
39,186,897
65,045,163
2,743,124
(466,832)
67,321,455
Less accumulated depreciation for:
Buildings
(4,652,892)
(354,885)
-
(5,007,777)
Non -building improvements
(3,327,519)
(314,193)
39,985
(3,601,727)
Machinery and equipment
(6,424,193)
(584,952)
358,003
(6,651,142)
Infrastructure
(17,790,790)
(1,800,125)
-
(19,590,915)
(32,195,394)
(3,054,155)
397,988
(34,851,561)
Total capital assets
being depreciated, net
32,849,769
(311,031)
(68,844)
32,469,894
Governmental activities
capital assets, net $ 41,251,526 $ 79,175 $ (68,844) $ 41,261,857
At September 30, 2015, the City's governmental activities had outstanding commitments for construction
contracts of approximately $300,235 for the Fish House improvements ($128,390) and the Street Paving
improvements ($171,845).
I3'i
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Beginning Ending
Balance Additions Disposals Balance
Business -type activities
Capital assets, not being depreciated:
Land $
Construction in progress
Capital assets, being depreciated:
Buildings
Non -building improvements
Machinery and equipment
Infrastructure
Less accumulated depreciation for:
Buildings
Non -building improvements
Machinery and equipment
Infrastructure
Total capital assets
being depreciated, net
Business -type activities
9,060 $ 10,376 $ $ 19,436
262,625 81,314 343,939
271,685 91,690 363,375
6,341,864
6,341,864
1,889,637 -
1,889,637
1,235,263 26,689
(55,481) 1,206,471
7,690,727 750,861
8,441,588
17,157,491 777,550
(55,481) 17,879,560
(1,409,316)
(169,134)
(1,578,450)
(982,742)
(117,215)
(1,099,957)
(782,307)
(107,071)
55,481 (833,897)
(3,602,759)
(397,726)
- (4,000,485)
(6,777,124)
(791,146)
55,481 (7,512,789)
10,380,367
(13,596)
- 10,366,771
capital assets, net $ 10,652,052 $ 78,094 $ - $ 10,730,146
Depreciation expense was charged to functions/ programs of the primary government as follows:
Depreciation of governmental activities by function
General government $ 301,467
Public safety 297,523
Transportation 837,364
Physical environment 1,181,604
Economic environment 33,085
Cultural and recreation 403,112
Total governmental activities $ 3,054,155
Depreciation of business -type activities by function
Golf course $ 126,275
Airport 662,726
Building 2,145
Total business -type activities $ 791,146
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
8. LONG-TERM DEBT
Revenue notes are secured by and payable from the revenues of the respective funds that issued them.
The City entered into a nine (9) year loan agreement in 2012 with a local bank for $2,296,000
to provide financing to repave certain roads in the City and payoff an outstanding loan. The
City pledged Local Option Gas Tax revenues to repay the note payable. The funds are
accumulated in the Local Option Gas Tax Special Revenue fund for repayment of principal and
interest.
The City issued a four (4) year, $2,893,000 Infrastructure Sales Surtax Refunding Revenue
Note, Series 2013 in December 2013. The City has pledged Infrastructure Sales Surtax
revenues for repayment of principal and interest. These proceeds and other Infrastructure
Sales Surtax revenues were used to totally refund or advance refund all of the outstanding
Infrastructure Sales Surtax Bonds prior to September 30, 2014.
The City issued a nine (9) year, $3,096,000 Stormwater Utility Refunding Revenue Note, Series
2013 in December 2013. The City has pledged Stormwater Fee Revenues for repayment of
principal and interest. These proceeds and other Stormwater Fee revenues were used to
totally advance refund all of the outstanding Stormwater Utility Revenue Bonds prior to
September 30, 2014.
The City entered into a four (4) year loan agreement in 2013 with a local bank for $299,050 to
provide financing to purchase equipment for the Golf Course. Repayment of principal and
interest will be made from Golf Course revenues.
As of September 30, 2015, there was no outstanding in -substance defeased debt.
The following is a summary of governmental activities long-term debt transactions for the year ended
September 30, 2015:
Governmental activities
Notes payable
Compensated absences
Termination benefits
Pollution remediation
Totals governmental
activities
Beginning
Balance
$ 7,608,000 $
1,405,482
3,427
91,200
Additions Deductions
- $ (1,567,000)
530,408 (470,481)
- (3,427)
Ending Due Within
Balance One Year
$ 6,041,000 $ 1,582,000
1,465,409 84,590
91,200
$ 9,108,109 $ 530,408 $ (2,040,908) $ 7,597,609 $ 1,666,590
Notes payable
Florida Gas Tax Revenue Note, due in annual installments of
$97,000 to $121,000 plus interest at 1.94%
through 2023. $ 1,689,000
2013 Infrastructure Sales Surtax Refunding Revenue Note,
Series 2013, due in annual installments of $353,000 to $508,000
plus interest at 0.86% through 2017. 1,722,000
2013 Stormwater Utility Refunding Revenue Note, Series 2013,
due in annual installments of $352,000 to $395,000 plus
interest at 1.73% through 2022. 2,630,000
$ 6,041,000
61
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
The following is a summary of business -type activities long-term debt transactions for the year ended
September 30, 2015:
Beginning Ending Due Within
Balance Additions Deductions Balance One Year
Business -type activities
Notes payable $ 284,704 $ $ (72,454) $ 212,250 $ 49,861
Compensated absences 196,157 (9,988) 186,169 -
Totals business -type
activities $ 480,861 $ $ (82,442) $ 398,419 $ 49,861
Annual debt service requirements to maturity for long-term debt are as follows:
Governmental Activities Business -type Activities
Year Ended
September
30, Principal Interest Principal Interest
2016 $ 1,582,000 $ 89,872 $ 49,950 $ 7,126
2017 1,284,000 71,547 51,956 5,120
2018 590,000 56,523 110,344 341
2019 601,000 45,836 - -
2020-2024 1,984,000 72,617
$ 6,041,000 $ 336,395 $ 212,250 $ 12,587
For the governmental activities, compensated absences, the unfunded OPEB obligation and termination
benefits are generally liquidated by the General Fund. For business -type activities, compensated absences
and unfunded OPEB obligations are allocated to and liquidated by the golf course, airport or building funds.
A pollution remediation obligation was recorded for a Florida Department of Environmental (FDEP) Order
dated March 10, 1997. This was related to an incident of petroleum contamination at the Public Works
Department on April 22, 1991. The City was named as the party responsible for the cleanup but FDEP
determined the discharge is eligible under the Petroleum Cleanup Participation Program and will not compel
site rehabilitation prior to funding becoming available from that program. The program has a funding cap of
$400,000, with a 25% required cost share percentage. The City must also pay for a limited contamination
assessment report sufficient to determine the extent of the contamination and cleanup. Based on the
information available, the City estimated its expenditure to be $91,200 dependent on the extent of work that
is eventually required and recorded a long-term liability of $91,200.
62
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
9. LEASES
Operating Leases- Lessee
The City is obligated under a lease for land accounted for as an operating lease. Operating leases do not give
rise to property rights or lease obligations. Total costs for the lease was $100,000 for the fiscal year ended
September 30, 2015. This is for the Airport Fund's lease obligation for the property used as the City's golf
course. The following is a schedule by years for future minimum rental payments required under the
operating lease that has initial or remaining noncancelable lease terms in excess of one year at September
30, 2015:
Year Ended
September 30, Airport
2016
$ 100,000
2017
100,000
2018
100,000
2019
100,000
2020
100,000
2021-2025
500,000
2026-2030
500,000
2031-2035
500,000
2036-2040
500,000
2041-2045
500,000
Total
$ 3,000,000
Operating Leases- Lessor
The City is the lessor in two communication tower leases with terms of up to fifty-five years. The towers
have a cost of $39,285 and have been fully depreciated. Following is a schedule by year of minimum future
rental income on noncancelable operating leases:
Year Ended Governmental
September 30, Activities
2016
$ 244,298
2017
237,742
2018
233,013
2019
222,152
2020
224,569
2021-2025
1,045,986
2026-2030
956,718
2031-2035
1,060,550
2036-2040
1,193,069
2041-2045
1,362,199
2046-2050
1,078,058
2051-2055
1,353,554
Total $ 9,211,909
63
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
The Airport Fund is the lessor of various properties (land with a cost basis of $9,060) with lease terms varying
from twenty to thirty years. These include the lease to the Golf Course Fund requiring annual payments of
$100,000 through 2045. Following is a schedule by year of minimum future rental income on noncancelable
operating leases:
Future minimum rental commitments are as follows:
Year Ended
Business -type
September 30,
Activities
2016
$ 207,863
2017
203,607
2018
195,317
2019
161,257
2020
161,257
2021-2025
730,099
2026-2030
548,510
2031-2035
341,098
Total $ 2,549,008
10. PROPERTY TAXES
The City is permitted by State law to levy taxes up to 10 mills on assessed valuation. The millage rate levied
by the City for the fiscal year ended September 30, 2015, was 3.8556 mills. Total tax collections were
approximately 96.35% of the total tax levy.
The tax levy of the City is established by City Council. Under Florida law, the assessment of all properties and
the collection of municipal taxes are provided by offices of the County's Property Appraiser and Tax
Collector. Ad Valorem taxes are levied on property values as of January 1. The fiscal year for which taxes are
levied begins October 1. Taxes are due November I and become delinquent on April 1. All taxes unpaid as of
May 30 are subject to a tax certificate sale. Property tax revenues are recognized in the fiscal year for which
they are levied and also become due and payable.
11. CONTINGENT LIABILITIES
Various suits and claims are currently pending against the City. It is impossible for the City to accurately
quantify the exposure involved given the jury's latitude in assessing compensatory and punitive damages, and
the court's latitude in awarding attorney's fees. The City intends to vigorously defend against these lawsuits
and believes it has a good chance of prevailing on their merits. The City is contingently liable with respect to
lawsuits and other claims incidental to the ordinary course of its operations. In the opinion of management
and based on the advice of legal counsel, the ultimate disposition of lawsuits will not have a material adverse
effect on the financial position of the City.
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor
agencies, principally the federal and state governments. Any disallowed claims, including amounts already
collected, may constitute a liability to the applicable funds. The amount, if any, of expenditures that may
be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if
any, to be immaterial.
64
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
12. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of or damage to and destruction of assets;
errors and omissions; and natural disasters. The City purchases commercial insurance with various
deductibles for different types of losses. The cost of this insurance is accounted for in the General Fund, Golf
Course Fund, Airport Fund, and Building Fund. Settled claims have not exceeded this commercial coverage in
the past three fiscal years.
13. BENEFIT PLANS
Police Officer's Pension Plan
Defined Benefit Pension Plan
Plan Description. The Police Officers' Pension Plan is a Florida Statute Chapter 185 single -employer defined
benefit plan. Only City police officers participate in the Police Pension Plan. The state provides a
contribution to the Police Pension Plan through a distribution of funds collected from insurance premium
taxes. The Pension plan data provided in these Financial Statements are from the actuarial valuation as of
October 1, 2015 to determine the required contribution for the fiscal year ending September 30, 2015.
Although the Police Officers' Pension Plan provides separate reporting, which may be obtained in the Finance
department, it is also a component unit (reporting as a Pension Trust Fund) of the City's financial reporting
entity.
Basis of Accounting. Financial statements are prepared using the accrual basis of accounting. Plan member
contributions are recognized in the period in which the contributions are due. Employer contributions are
recognized when due, and the employer has made formal commitment to provide the contributions. Benefits
and refunds are recognized when due and payable in accordance with the terms of the Plan.
Method Used to Value Investments. Investments are reported at fair value. Short-term investments are
reported at cost, which approximates fair value. Securities traded on a national or international exchange
are valued at the last reported sales price at current exchange rates. Mortgages are valued on the basis of
future principal and interest payments, and are discounted at prevailing interest rates for similar
instruments. Investments that do not have an established market are reported at estimated fair value.
Investments in securities of a single organization (excluding mutual funds and those issued or guaranteed by
the U.S. government) held by the pension plan did not exceed five percent of the total plan assets.
Investment Policy. The plan's policy in regard to the allocation of invested assets is established and may be
amended by the Board of Trustees. The investment policy has been formulated based on consideration of a
wide range of policies and describes the prudent investment process that the Board deems appropriate. The
Plan's asset allocation policy is shown on the following pages.
Concentrations. At September 30, 2015, the Plan held certain investments (other than those issued or
explicitly guaranteed by the U.S. government, mutual funds, external investment pools, or other pooled
investments) in certain organizations that represent 5 percent or more of the Plan's fiduciary net position.
Please see Note 3 for details of these concentrations.
65
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Plan Membership. As of September 30, 2014, employee membership data was as follows:
Inactive plan members or beneficiaries currently receiving benefits 11
Inactive plan members entitled to but not yet receiving benefits 6
Active plan members 35
Total membership
52
Benefit Provisions and Contribution Requirements. The Police Officers' Pension Plan provides retirement
and disability benefits to plan members and beneficiaries. This Plan is administered by a separate local Board
of Trustees. Chapter 185, Florida Statutes, as amended governs all benefit provisions of the Plan.
Contribution requirements, in accordance with Chapter 185, Florida Statutes, are established by City
ordinance, as provided in Chapter 58, Article III of the Sebastian City Code. The City Council has the authority
to amend funding requirements.
Contributions. Contributions to the plan are based upon the hire date of the members. Members hired prior
to October 1, 2011 contribute 8% of their salary, effective October 1, 2012 (5% of salary prior to that date).
Members hired after September 30, 2011 contribute 5% of their salary. City and state contributions consist of
the remaining amount required in order to pay current costs and amortize unfunded past service cost, if any,
over a period not exceeding 30 years.
The schedule of employer contributions, presented as required supplementary information (RSI) following the
notes to the financial statements, presents trend information about the amounts contributed to the plan by
the City in comparison to the actuarial required contribution, an amount that is actuarially determined in
accordance with the parameters of GASB Statement No 50. The required contribution represents a level of
funding that, if paid on an ongoing basis, is projected to cover normal cost for each year and amortize any
unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years.
Rate of Return. For the year ended September 30, 2015, the annual money -weighted rate of return on
pension plan investments, net of pension plan investment expense, was -0.45 percent. The money -weighted
rate of return expresses investment performance, net of investment expense, adjusted for the changing
amounts actually invested.
Net Pension Liability of the City. The components of the net pension liability of the City at September 30,
2015, were as follows:
Total pension liability $ 13,434,105
Less: Plan fiduciary net position 11,284,027
City's net pension liability $ 2,150,078
Plan fiduciary net position as
percentage of total pension
liability 84.00%
66
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Actuarial Assumptions. The total pension liability was determined by an actuarial valuation as of October 1,
2014 updated to September 30, 2015 using the following actuarial assumptions applied to all measurement
periods.
Inflation
Salary increases
Discount rate
Investment rate of return
3.00%
3.80% - 16.00%
7.60%
7.60%
Mortality is based on the RP -2000 Table with no projection. Disabled lives are set forward 5 years. The City
feels this assumption sufficiently accommodates future mortality improvements.
The actuarial assumptions used in the October 1, 2014 valuation were based on the results of an actuarial
experience study performed on September 16, 2013, for the period 1999-2012.
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which best -estimate ranges of expected future real rates of return (expected returns, net of
pension plan investment expenses and inflation) are developed for each major asset class. These ranges are
combined to produce a long term expected rate of return by weighing the expected future real rates of
return by the target asset allocation percentage and by adding expected inflation. Best estimates of
arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation
as of September 30, 2015 are summarized in the following table:
Asset Class
Domestic equity
International equity
Fixed income
Total
Inflation
Risk adjustments
Investment rate of return
Long-term Money -
Expected Weighted
Target Real Rate of Rate of
Allocation Return Return
50.00% 7.45% 3.73%
10.00% 7.55% 0.76%
40.00% 2.05% 0.82%
100.00% 5.31%
3.00%
-1.71%
6.60%
Discount Rate. The discount rate used to measure the total pension liability was 7.60 percent. The
projection of cash flows used to determine the discount rate assumed that plan member contributions will be
made at the current contribution rate and that sponsor contributions will be made at rates equal to the
difference between actuarially determined contribution rates and the member rate. Based on those
assumptions, the pension plan's fiduciary net position was projected to be available to make all projected
future benefit payments of current plan members. Therefore, the long-term expected rate of return on
pension plan investments was applied to all period of projected benefit payments to determine the total
pension liability.
67
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Changes in Assumptions. The City revised certain actuarial assumptions in the September 30, 2015 valuation
that had a significant impact on the total pension liability from the prior measurement date. The most
significant change was a decrease in the expected investment rate of return from 7.75% to 7.60%.
Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following presents the net
pension liability of the City, calculated using the discount rate of 7.60 percent, as well as what the City's net
pension liability would be if it were calculated using a discount rate that is one percentage point lower (6.60
percent) or one percentage point higher (8.60 percent) than the current rate.
Net Pension Liability
One Percent Current One Percent
Decrease Discount Rate Increase
6.60% 7.60% 8.60%
$ 3,795,845 $ 2,150,078 $ 759,289
Changes in the net pension liability. The components of the change in the net pension liability are
summarized as follows:
Balances at September 30, 2014
Changes for the year:
Service cost
Interest on total pension liability
Change in excess state money
Changes of benefit terms
Differences between expected and
actual experience
Assumption changes
Benefit payments, including refunds
of employee contributions
Employer contributions
State contributions
Employee contributions
Pension plan net investment
income (loss)
Administrative expense
Net changes
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
$ 12,547,129 $ 11,253,240 $ 1,293,889
403,611
403,611
979,259
979,259
22,218
22,218
(4,316)
(4,316)
(240,633) (240,633)
223,200 223,200
(496,363) (496,363)
320,179 (320,179)
145,700 (145,700)
161,270 (161,270)
(60,326) 60,326
- (39,673) 39,673
886,976 30,787 856,189
Balances at September 30, 2015 $ 13,434,105 $ 11,284,027 $ 2,150,078
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions.
For the year ended September 30, 2015, the City recognized pension expense of $600,414. At September 30,
2015, the City reported pension -related deferred outflows of resources and deferred inflows of resources
from the following sources:
Amounts reported as pension -related deferred outflows of resources and deferred inflows of resources will be
recognized in pension expense as follows:
Year Ended
September 30, Amount
2016
Deferred
Deferred
Net Deferred
2018
Outflows of
Inflows of
Outflows of
Resources
Resources
Resources
Difference between expected and
actual experience
$ -
$ 192,506
$ (192,506)
Changes in assumptions
178,560
-
178,560
Net difference between projected and actual
earnings on pension plan investments
727,173
727,173
Employers contribution subsequent
to the measurement date
-
-
-
$ 905,733
$ 192,506
$ 713,227
Amounts reported as pension -related deferred outflows of resources and deferred inflows of resources will be
recognized in pension expense as follows:
Year Ended
September 30, Amount
2016
$ 178,306
2017
178,306
2018
178,306
2019
178,309
Total $ 713,227
Payable to the Pension Plan. At September 30, 2015, the City reported $8,429 payable to the police officers
pension plan.
Coastal Florida Public Employees Association
Negotiated Defined Benefit Pension Plan
Plan Description. The Communication Workers of America / International Typographical Union Negotiated
Pension Plan (NPP), which began in 1967, is a multi-employer cost-sharing, defined benefit plan. The Plan is
available to any Coastal Florida Public Employees Association bargaining unit member and benefits are
portable from one contributing employer to another. The Plan is not a state or local governmental plan, is
used to provide defined benefit pensions both to employees of state or local governmental employers and to
employees of employers that are not state or local governmental employers, has no predominant state or
local governmental employer and issues audited financials following FASB guidelines, which can be obtained
at http://www.cwaitu.com. The City of Sebastian approved the Plan by Resolution No. R-01-36, effective
April 29, 2001. There is currently no expiration date of the collective-bargaining agreement requiring
contributions to the pension plan. The total number of governmental employees covered as of September 30,
2015, was 60. The City has chosen to early implement the GASB 78 disclosure requirements.
.A
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Normal Pension. Minimum age 65: 5 years of Service Credit required if any portion of service credit was
earned after January 1, 1989. 10 years of Service Credit required if employees' coverage ended before
January 1, 1989. Once the Service Credit amount is accrued, the employee is vested and cannot lose the right
to a pension.
Early Pension. Minimum age 62: 20 years of Service Credit required if employed after January 1, 1989. 25
years of Service Credit required if employment ended before January I, 1993. Pension amounts are
permanently reduced based on age on the effective date, because the payments are expected to be made for
a longer period of time.
Disability Pension. No minimum age and the pension amount is not reduced for age; there must be a Social
Security Disability Award, 10 years of actual Service Credit and a contribution for covered employment must
have been made within three calendar years preceding the entitlement date to Social Security Disability
Pension. An application must be filed with the Plan within 6 months of the Social Security Notice of Award
date to receive pension retroactive to the Social Security entitlement date.
Lump Sum Disability Benefit. If the employee has been awarded a Social Security Disability Award with the
date of entitlement before May 1, 2009 and is vested, but not immediately eligible to receive any pension
described above, the employee may be eligible for a lump sum disability benefit.
Death Benefit. If the employee dies before becoming a pensioner and has at least $250 contributed on the
employees' behalf, a lump sum death benefit equal to total contributions credited on the employees' behalf
or 36 times the Normal Pension amount, if greater, will be paid to employees' beneficiary. If the employee is
married at the time of death, the spouse will have the choice of a lump sum or a monthly survivor benefit.
Withdrawal Benefit. If the employee did not earn enough Service Credit to qualify for a Normal Pension, the
employee may be eligible for a lump sum withdrawal benefit, based on total contributions, after the
employee has incurred a break in service. Benefit Provisions and Contribution Requirements: The NPP
provides retirement and disability benefits to plan members and beneficiaries. The plan is administered at
the Plan Office in Colorado Springs, Colorado. Contribution requirements are established by the CWA
contract, effective date October 1, 2011, which is negotiated every 3 years, and approved by City Council.
Benefit Provisions and Contribution Requirements. The NPP provides retirement and disability benefits to
plan members and beneficiaries. The plan is administered at the Plan Office in Colorado Springs, Colorado.
Contribution requirements are established by the CWA contract, effective date October 1, 2013, which is
negotiated every 3 years, and approved by City Council.
Employer Withdrawal Liability. Under federal law, employers who partially or completely withdraw from a
multiemployer plan are assessed withdrawal liability for their proportionate share of the Plan's unfunded
vested liabilities as of the beginning of the year in which they withdraw. Withdrawal liability is usually paid
in quarterly installments as determined by a statutory formula over a maximum of 20 years.
Funding Policy. Administration costs of the pension plan are financed by the plan. The employer contribution
rate, expressed as a percentage of compensation, was 9.0% for the 2014-2015 fiscal year. Employees do not
contribute to this plan. Contributions to the CWA Pension Plan for the fiscal years ended September 30, 2013,
2014 and 2015 were $202,612, $204,361 and $217,915 respectively, which are equal to 100% of the required
contribution for each year.
70
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Defined Contribution 401(a) Plan
Plan Description. The ICMA Retirement Corporation's 401 Retirement Plan is a Defined Contribution Plan
"qualified" under Section 401(a) of the Internal Revenue Code. Each participant has a plan account to which
contributions are made. Plan benefits are based on the total amount of money in the employees' account at
retirement or other eligible event. The Plan is available to all management staff and may be rolled over to
another "qualified" employer plan that accepts rollovers, or Traditional IRA's.
Plan Participation. As of September 30, 2015, there were a total of 19 employees participating in the plan.
Periodic Payments. Retirement benefits can be paid monthly, quarterly, semi-annual (at six-month intervals
only) or annual payments until assets are fully paid out.
Rollover. Retirement benefits can be rolled over to another employer plan (including a 457 deferred
compensation plan) that accepts rollovers, or to a Traditional IRA.
Lump Sum. Retirement benefits can be paid either partially or by total distribution of the employees
account balance.
Annuities. Retirement benefits can be utilized to purchase an annuity.
Benefit Provisions and Contribution Requirements. The 401 provides retirement benefits to plan members
and beneficiaries. The plan is administered by the ICMA Retirement Corporation. Contribution requirements
are established by the City of Sebastian, Management Benefit Package, revised October 1, 2006, and
approved by the City Manager.
Funding Policy. The administration costs of the pension plan are financed by the Plan. The employer
contribution rate, expressed as a percentage of compensation, was 9% for the 2013-14 fiscal year. Employees
do not contribute to this Plan. Contributions to the 401 Defined Contribution Plan for the fiscal years ended
September 30, 2013, 2014 and 2015 were $110,184, $113,098 and $130,719 respectively, which are equal to
100% of the required contribution for each year.
14. OTHER POSTEMPLOYMENT BENEFITS
Plan Description. Pursuant to Section 112.0801, Florida Statutes, the City is required to permit participation
in the health insurance program by retirees and their eligible dependents at a cost to the retiree that is no
greater than the cost at which coverage is available for active employees. The City, by policy, has elected to
provide qualified retirees with partial subsidy. In this respect, the City operates a single -employer plan.
Employees are eligible to receive a partial subsidy from the Retiree Medical Plan upon retirement, if they are
enrolled in the active medical plan immediately prior to retiring and achieved at least 20 years of service in a
full time capacity. If eligible, the City pays 50% of the costs of single coverage group health insurance for up
to 2 years after retirement.
71
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
Funding Policy. Based on GASB Statement 43 and 45, which set forth the guidelines for treatment of other
postemployment benefits, the City had an actuary calculate future funding requirements in 2014. The
actuary's 2015 estimate, using the Entry Age Normal (level percentage of pay) Method, produced an unfunded
obligation of $50,901 and an annual required contribution of $4,515. The City elected to fund the OPEB
obligation on a pay-as-you-go basis. The enterprise fund portion $402 was also recognized in the enterprise
fund financial statements. The entire unfunded obligation was recognized in the government -wide financial
statements. As such, a separate audited GAAP basis postemployment benefit plan report is not available.
Annual OPEB Cost and Net OPEB Obligation. The City's annual other postemployment benefit (OPEB) cost is
calculated based on the annual required contribution of the employer (ARC). The ARC represents a level of
funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any
unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years.
The following table shows the components of the City's annual OPEB cost for the year ended September 30,
2015, the amount actually contributed to the plan, and changes in the City's net OPEB obligation:
Annual required contribution $ 5,024
Interest on net OPEB obligation 841
Adjustment to annual required contribution (1,169)
Net OPEB cost 4,696
Contributions made -
Increase in net OPEB obligation 4,696
Net OPEB obligation, beginning of year 21,022
Net OPEB obligation, end of year $ 25,718
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net OPEB
obligation for fiscal year 2015 and the previous two years were as follows:
Three -Year Trend Information
Percentage of
Annual OPEB
Annual OPEB Cost Net OPEB
Year Ended Cost Contributed Obligation
2013 $ 3,674 352.5% $ 25,273
2014 4,207 201.0% 21,022
2015 4,696 201.0% 25,718
Funded Status and Funding Progress. As of October 1, 2015, the date of the most recent actuarial valuation,
the actuarial accrued liability for benefits was $50,901, all of which was unfunded. The covered payroll
(annual payroll of active employees covered by the plan) was $6,213,151, and the ratio of the UAAL to the
covered payroll was 0.9 percent.
72
CITY OF SEBASTIAN, FLORIDA
0 Notes to Financial Statements
The actuarial valuations involve estimates of the value of reported amounts and assumptions about the
probability of events far into the future. Actuarially determined amounts are subject to continual revision as
actual results are compared to past expectations and new estimates are made about the future. Calculations
are based on the types of benefits provided with the plan at the time of each valuation and on the pattern of
sharing of costs between the employer and plan members to that point. Calculations reflect a long-term
perspective and assumptions used include techniques designed to reduce short-term volatility in actuarial
accrued liabilities and actuarial value of assets. The schedule of funding progress shown below is required to
present multi -trend information about whether the actuarial value of plan assets is increasing or decreasing
over time relative to the actuarial accrued liability for benefits. The City elected to fund the OPEB on a pay-
as-you-go basis and consequently, reports a zero balance for the actuarial value of assets.
Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on
the substantive plan (the plan as understood by the employer and plan members) and include the types of
benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between
the employer and plan members to that point. The actuarial methods and assumptions used include
techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and
the actuarial value of assets, consistent with the long-term perspective of the calculations.
The required contribution was determined as part of the October 1, 2015 actuarial valuation using the entry
age normal (level percentage of pay) actuarial funding method. The actuarial assumptions included (a) 4
percent investment rate of return (net of administrative expenses), (b) a 3 percent payroll growth rate, (c) a
3 percent inflation rate, and (d) an annual healthcare trend rate of 9 percent initially, reduced by
decrements to an ultimate rate of 5 percent in 2017. The actuarial assumptions utilized the RP -2000
Combined Healthy Mortality Table projected to 2014. The plan's unfunded actuarial accrued liability is being
amortized as a level dollar of projected payroll on an open basis. The remaining amortization period at
October 1, 2015 was 29 years.
Termination Benefits
The City offers to pay 50% of the cost of single coverage group (health only) insurance for up to two years for
employees retiring after twenty years of service in a full-time capacity. During the year ended September
30, 2015, no retiring employees made this election, and $0 was recorded at year end as the total accrued
termination benefits in the governmental activities of the government -wide financial statements.
73
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
15. FUND BALANCES - GOVERNMENTAL FUNDS
In accordance with GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, the City
classifies fund balances based primarily on the extent to which it is bound to observe constraints imposed upon the use
of the resources reported in governmental funds. Detailed information on fund balances of governmental funds is as
follows:
Discretionary Riverfront Capital
General Fund Sales Tax Redevelopment Improvements Nonmajor Funds Total
Nonspendable:
Inventory
$ 43,911 $ $
$ $ $
43,911
Prepaids
122,125
122,125
Long-term advances
150,000
150,000
Permanent fund corpus
-
928,758
928,758
Total nonspendable
316,036
928,758
1,244,794
Restricted for:
Debt service
-
682,280
682,280
Infrastructure
2,413,576
- 407,195
2,820,771
Redevelopment
-
446,728 -
446,728
Stormwater
-
- 200,299
200,299
Law enforcement
38,544 -
- 31,709
70,253
Total restricted
38,544 2,413,576
446,728 1,321,483
4,220,331
Committed for:
Recreational system
development
769,139
769,139
Development of
public parking
46,549
46,549
Total committed
-
815,688
815,688
Assigned for:
General employee events
1,086
-
1,086
Law enforcement events
7,606
7,606
Total assigned
8,692
8,692
Unassigned
5,289,322 -
- (44,010) (14,608)
5,230,704
Total fund balances,
governmental funds
$ 5,652,594 $ 2,413,576 $
446,728 $ (44,010) $ 3,051,321 $
11,520,209
74
CITY OF SEBASTIAN, FLORIDA
N Notes to Financial Statements
16. NET INVESTMENT IN CAPITAL ASSETS
The composition of net investment in capital assets as of September 30, 2015, was as follows:
Capital assets:
Capital assets not being depreciated
Capital assets being depreciated, net
Related debt:
Total notes payable
Net investment in capital assets
17. RESTATEMENT
Governmental Business -type Total
Activities Activities
$ 8,791,963 $ 363,375 $ 9,155,338
32,469,894 10,366,771 42,836,665
41,261,857 10,730,146 51,992,003
6,041,000 212,250 6,253,250
$ 35,220,857 $ 10,517,895 $ 45,738,753
The City adopted the provisions of GASB Statement No. 68, Accounting and Financial Reporting for
Pensions, in the current year. As a result of this change, beginning net position of governmental activities
was decreased by $1,432,244.
75
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Single -employer Pension Trust Fund
Schedule of Changes in Net Pension Liability and Related Ratios
Total pension liability
Service cost
Interest on total pension liability
Change in excess state money
Changes of benefit terms
Differences between expected and actual experience
Changes of assumptions
Benefit payments, including refunds of employee contributions
Net change in total pension liability
Total pension liability, beginning of year
Total pension liability, end of year
Plan fiduciary net position
Employer contributions
State contributions
Employee contributions
Pension plan net investment income (loss)
Benefit payments
Administrative expense
Net change in plan fiduciary net position
Plan fiduciary net position, beginning of year
Plan fiduciary net position, end of year
Net pension liability
Plan fiduciary net position as a percentage of total pension liability
Fiscal Year Fiscal Year Fiscal Year
Ending Ending Ending
September 30, September 30, September 30,
2015 2014 2013
$ 403,611 $
396,146 $
367,653
979,259
914,243
853,018
22,218
24,386
-
(4,316)
-
1,029,818
(240,633)
(452,892)
(465,435)
223,200
(27,815)
(32,153)
(496,363)
(452,892)
(465,435)
886,976
881,883
755,236
12,547,129 11,665,246 10,910,010
$ 13,434,105 $ 12,547,129 $ 11,665,246
$ 320,179 $
401,103 $
396,603
145,700
147,868
145,961
161,270
160,494
154,683
(60,326)
951,910
1,029,818
(496,363)
(452,892)
(465,435)
(39,673)
(27,815)
(32,153)
30,787
1,180,668
1,229,477
11,253,240 10,072,572 8,843,096
$ 11,284,027 $ 11,253,240 $ 10,072,573
$ 2,150,078 $ 1,293,889 $ 1,592,673
84.00% 89.69% 86.35%
Covered employee payroll $ 2,154,612 $ 2,106,767 $ 2,131,399
Net pension liability as a percentage of covered employee payroll 99.79% 61.42% 74.72%
Note: GASB 67 was implemented in fiscal year 2014. This schedule is being built prospectively. Ultimately, 10 years of data will be
presented.
77
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Single -employer Pension Trust Fund
Schedule of the Net Pension Liability
Schedule of Investment Returns
Fiscal Year
Ending Annual Return
September 30, (')
2013 11.513
2014 9.423
2015 -0.453
�') Annual money -weighted rate of return, net of investment expenses
Note: GASB 67 was implemented in fiscal year 2014. This schedule is being built prospectively. Ultimately, 10 years of data will be
presented.
78
Plan Net
Net Pension
Position as a
Liability as a
Fiscal Year
Percentage of
Percentage of
Ending
Total Pension
Plan Net Net Pension
Total Pension
Covered
Covered
September 30,
Liability
Position
Liability
Liability
Payroll
Payroll
2013
$ 11,665,246
$ 10,072,573 $
1,592,673
86.353
$ 2,131,399
74.72%
2014
12,547,129
11,253,240
1,293,889
89.693
2,106,767
61.423
2015
13,434,105
11,284,027
2,150,078
84.003
2,154,612
99.793
Note: GASB 67 was implemented
in fiscal year 2014.
This schedule is being built prospectively. Ultimately,
10 years of data will be
presented.
Schedule of Investment Returns
Fiscal Year
Ending Annual Return
September 30, (')
2013 11.513
2014 9.423
2015 -0.453
�') Annual money -weighted rate of return, net of investment expenses
Note: GASB 67 was implemented in fiscal year 2014. This schedule is being built prospectively. Ultimately, 10 years of data will be
presented.
78
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Single -employer Pension Trust Fund
Notes to Schedule of Contributions
Valuation date October 1, 2013
Notes Actuarially determined contribution amounts are calculated as of October 1, two years
prior to the end of the fiscal year in which contributions are reported.
Methods and assumptions used to determine contribution rates:
Funding method
Schedule of Contributions
Amortization method
Level percentage -of -payroll, closed
Remaining amortization period
27 Years (as of October 1, 2013)
Mortality
RP -2000 Table with no projection. Based on a study of over 650 public
2.70%
safety funds, this table reflects a 1 0% margin for future mortality
Actual
improvements. (Disabled lives set forward 5 years).
Interest rate
7.75% per year compounded
Inflation
3.00% per year
Retirement age
Contribution
Fiscal Year
Actuarially
3.80%
has reached Normal Retirement is assumed to continue employment
Contribution
for one additional year.
as Percentage
Ending
Determined
City
State
Deficiency
Covered
of Covered
September 30,
Contribution
Contribution
Contribution
(Excess)
Payroll
Payroll
2013
$ 506,560
$ 396,603
$ 145,961
$ (36,004)
$ 2,131,399
25.46%
2014
524,585
401,103
147,868
(24,386)
2,106,767
26.06%
2015
596,502
320,179
145,700
130,623
2,154,612
21.62%
Notes to Schedule of Contributions
Valuation date October 1, 2013
Notes Actuarially determined contribution amounts are calculated as of October 1, two years
prior to the end of the fiscal year in which contributions are reported.
Methods and assumptions used to determine contribution rates:
Funding method
Frozen initial liability cost method
Amortization method
Level percentage -of -payroll, closed
Remaining amortization period
27 Years (as of October 1, 2013)
Mortality
RP -2000 Table with no projection. Based on a study of over 650 public
2.70%
safety funds, this table reflects a 1 0% margin for future mortality
0.00%
improvements. (Disabled lives set forward 5 years).
Interest rate
7.75% per year compounded
Inflation
3.00% per year
Retirement age
Earlier of: 1) age 55 and 10 years of credited service, or 2) age 52 and
25 years of credited service, regardless of age. Also, any member who
3.80%
has reached Normal Retirement is assumed to continue employment
for one additional year.
Early retirement
Commencing at the assumed Early Retirement Age (50), members are
assumed to retire with an immediate subsidized benefit at the rate of
5% per year.
Disability rates
Age based rates with increasing probability of disablement at higher
ages. A sample of rates are shown below:
Age
Assumption
30
0.12%
40
0.21%
50
0.54%
60
2.70%
Additionally, it is assumed that 75% of disablements and active
Member deaths are service related.
Termination rates Credited Service
Assumption
First two years
14.00%
Years 3-9
5.70%
Years 10-14
2.80%
15 years and
Greater
0.00%
Salary increases Credited Service
Assumption
First year
16.00%
Years 2.14
7.40%
15 years and
Greater
3.80%
Final salary load The projected salary at retirement is increased 20% to account for
Lump sum payments.
Payroll growth 3% for amortization of all UAAL bases
Actuarial asset method Market Value, net of investment -related expenses
79
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Other Postemployment Benefits Plan
Schedule of Funding Progress
Other Postemployment Benefits Plan
Schedule of Employer Contributions
Other Postemployment Benefits Plan
Fiscal
Annual
Actuarial
Year Ending
Required
Percentage
September 30,
Contributions
Accrued
9/30/2010
$ 4,600
UAAL as a
9/30/2011
Actuarial
Liability
Unfunded
3,800
Percentage
Actuarial
Value of
(AAL) -
AAL
Funded Covered
of Covered
Valuation
Assets
Entry Age
(UAAL)
Ratio Payroll
Payroll
Date
(a)
(b)
(b -a)
(a / b) (c)
((b -a) / c)
9/30/2010
$
$ 98,100
$ 98,100
$ 6,424,614
2%
9/30/2011
67,500
67,500
6,426,614
1%
9/30/2012
50,901
50,901
5,933,331
1%
9/30/2013
50,901
50,901
5,693,181
1%
9/30/2014
50,901
50,901
6,044,900
1%
9/30/2015
50,901
50,901
6,213,151
1%
Schedule of Employer Contributions
Other Postemployment Benefits Plan
Fiscal
Annual
Year Ending
Required
Percentage
September 30,
Contributions
Contributed
9/30/2010
$ 4,600
875%
9/30/2011
4,700
877%
9/30/2012
3,800
975%
9/30/2013
3,674
353%
9/30/2014
4,207
201%
9/30/2015
5,024
201%
:1,
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Coastal Florida Public Employees Association Pension Plan
Schedule of Employer Contributions
Coastal Florida Public Employees Association Pension Plan
Fiscal Annual
Year Ending Required
September 30, Contributions
9/30/2006 $
229,159
9/30/2007
254,909
9/30/2008
241,718
9/30/2009
254,997
9/30/2010
234,219
9/30/2011
223,113
9/30/2012
210,258
9/30/2013
202,612
9/30/2014
204,361
9/30/2015
217,916
Notes to Schedule of Employer Contributions - Coastal Florida Public Employees Association Pension Plan
Critical Status. Under federal pension law, a plan generally will be considered to be in "critical" status if either the funded percentage of the
plan is less than 65 percent or if certain other tests are met. If a pension plan enters critical status, the trustees of the plan are required to
adopt a rehabilitation plan. Rehabilitation plans establish steps and benchmarks for pension plans to improve their funding status over a
specified period of time.
The Plan's actuary has certified that for the 2014 Plan year, the Plan was in critical status because the Plan has a deficit in the minimum
funding standard account. The Board of Trustees adopted a rehabilitation plan on March 8, 2010, that for new pensions: eliminates the 60
month minimum guarantee in the Life/5 pension option; increases the minimum age for Early Pension from age 60 to 62 (with 20 years of
service credit); removes the Early Pension subsidy by increasing the reduction factors; discontinues the offering of retroactive pension
payments; and required 5 years of service credit to vest for participants reaching normal retirement age before a break in service. A
mandatory increase in contributions is not required under the Rehabilitation Plan, but decreases in contribution rates or the exclusion of
covered employees are not permitted. A copy of the rehabilitation plan may be obtained be contacting the Coastal Pension Plan office.
81
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
82
CITY OF SEBASTIAN, FLORIDA
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2015
Assets
Cash and cash equivalents
Investments
Due from other governments
Total assets
Liabilities
Negative equity in pooled cash
Accounts payable and
accrued liabilities
Total liabilities
Fund balances:
Nonspendable
Restricted
Committed
Unassigned
Total fund balances
Total liabilities and
fund balances
Special Revenue Funds
Local Law
Option Parking Recreation Stormwater Enforcement
Gas Tax In -Lieu -of Impact Fee Utility Forfeiture
$ 352,188 $ - $ 606,240 $ 123,488 $ 5,799
- 46,549 162,899 - 33,838
55,684 - - 11,950 -
$ 407,872 $ 46,549 $ 769,139 $ 135,438 $ 39,637
677 35,139 7,928
677 35,139 7,928
407,195
46,549 769,139
100,299 31,709
407,195 46,549 769,139 100,299 31,709
$ 407,872 $ 46,549 $ 769,139 $ 135,438 $ 39,637
83
Debt Service " 11W Capital Projects Funds Permanent
Discretionary Stormwaterw Total
Sales Surtax Utility 4w VW General Stormwater Nonmajor
Revenue Note Revenue Transportation Capital P Utility Governmental
2013 Bonds 2003 Improvements Projects Improvements Cemetery Funds
$ 515,405 $ 166,875 $ $ $ 100,000 $ 854,758 $ 2,724,753
- - - 74,000 317,286
- - 80,000 - - 147,634
$ 515,405 $ 166,875 $ 80,000 $ $ 100,000 $ 928,758 $ 3,189,673
94,525
94,525
83
43,827
94,608
138,352
- - - 928,758 928,758
515,405 166,875 100,000 - 1,321,483
- - - 815,688
- - (14,608) - - (14,608)
515,405 166,875 (14,608) 100,000 928,758 3,051,321
$ 515,405 $ 166,875 $ 80,000 $ $ 100,000 $ 928,758 $ 3,189,673
84
CITY OF SEBASTIAN, FLORIDA
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances - Nonmajor Governmental Funds
For the Year Ended September 30, 2015
Special Revenue Funds
85
Local
Law
Option
Parking
Recreation
Stormwater
Enforcement
Gas Tax
In -Lieu -of
Impact Fee
Utility
Forfeiture
Revenues
Taxes:
Motor fuel
$ 633,096
$
$
$
$
Intergovernmental
10,050
Impact fees
-
281,450
Charges for services
987,440
-
Fines
-
-
-
2,350
Investment earnings
239
284
1,976
1,197
247
Otherrevenues
-
19,730
-
Total revenues
643,385
20,014
283,426
988,637
2,597
Expenditures
Current:
Public safety
-
-
-
-
17,268
Physical environment
-
143,215
-
Transportation
220,333
Culture and recreation
8,200
Debt Service:
Principal
207,000
Interest and fiscal charges
35,783
Capital outlay
2,800
Total expenditures
463,116
2,800
8,200
143,215
17,268
Revenues over (under) expenditures
180,269
17,214
275,226
845,422
(14,671)
Other financing sources (uses)
Transfers in
207,000
-
-
-
Transfers out
(136,742)
(101,759)
(790,038)
Total other financing sources(uses)
70,258
(101,759)
(790,038)
Net change in fund balances
250,527
17,214
173,467
55,384
(14,671)
Fund balances, beginning of year
156,668
29,335
595,672
44,915
46,380
Fund balances, end of year
$ 407,195
$ 46,549
$ 769,139
$ 100,299
$ 31,709
85
Debt Service
Capital Projects Funds
Permanent
Discretionary
Stormwater
3,984,912
Total
Sales Surtax
Utility
General Stormwater
Nonmajor
Revenue Note
Revenue
Transportation Capital Utility
Governmental
2013
Bonds 2003
Improvements Projects Improvements
Cemetery Funds
$ $ $ - $ $ $ $ 633,096
80,000 90,050
- 281,450
89,000 1,076,440
- 2,350
823 557 3,693 9,016
- - 1,418 21,148
823 557 80,000 94,111 2,113,550
17,268
143,215
1,027,125
401,737
38,126
258,459
-
3,984,912
-
8,200
1,008,000
352,000
(3,012)
1,567,000
21,307
51,588
108,678
-
-
1,128,794 884,196 260,494
2,276,284
1,029,307
403,588
1,166,920 884,196 260,494
- 4,379,104
(1,028,484)
(403,031)
(1,086,920) (884,196) (260,494)
94,111 (2,265,554)
1,027,125
401,737
1,104,360 884,196
360,494
-
3,984,912
-
-
- -
(3,012)
(1,031,551)
1,027,125
401,737
1,104,360 884,196
360,494
(3,012)
2,953,361
(1,359)
(1,294)
17,440
100,000
91,099
687,807
516,764
168,169
(32,048)
837,659
2,363,514
$ 515,405 $
166,875
$ (14,608) $ $
100,000 $
928,758
$ 3,051,321
86
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Local Option Gas Tax
For the Year Ended September 30, 2015
87
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Taxes:
Motor fuel
$ 553,152
$ 553,152 $
633,096
$ 79,944
Intergovernmental
10,050
10,050
10,050
-
Investment earnings
106
106
239
133
Total revenues
563,308
563,308
643,385
80,077
Expenditures
Current:
Transportation
320,103
320,103
220,333
(99,770)
Debt service:
Principal
207,000
207,000
207,000
Interest and fiscal charges
35,783
35,783
35,783
Total expenditures
562,886
562,886
463,116
(99,770)
Revenues over (under) expenditures
422
422
180,269
179,847
Other financing sources
Transfers in
207,000
207,000
207,000
-
Transfers out
(157,000)
(157,000)
(136,742)
20,258
Net changes in fund balance
50,422
50,422
250,527
200,105
Fund balance, beginning of year
156,668
156,668
156,668
-
Fund balance, end of year
$ 207,090
$ 207,090 $
407,195
$ 200,105
87
CITY OF SEBASTIAN, FLORIDA
Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Parking In -Lieu -Of Special Revenue Fund
For the Year Ended September 30, 2015
Revenues
Investment earnings
Otherrevenues
Total revenues
Expenditures
Capital outlay
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Actual Over
Original Final (Under) Final
Budget Budget Actual Budget
$ 129 $ 129 $ 284 $ 155
13,776 131776 19,730 5,954
13,905 13,905 20,014 6,109
- - 2,800 2,800
13,905 13,905 17,214 3,309
29,335 29,335 29,335 -
$ 43,240 $ 43,240 $ 46,549 $ 3,309
.,
CITY OF SEBASTIAN, FLORIDA
Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Recreation Impact Fee Special Revenue Fund
For the Year Ended September 30, 2015
Revenues
Impact fees
Investment earnings
Total revenues
Expenditures
Current:
Culture and recreation
Revenue over (under) expenditures
Other financing sources (uses)
Transfers out
Net change in fund balances
Fund balance, beginning of year
Fund balance, end of year
Original
Budget
$ 246,250 $
4,023
Actual Over
Final (Under) Final
Budget Actual Budget
246,250 $ 281,450 $ 35,200
4,023 1,976 (2,047)
250,273 250,273 283,426
- 8,200 8,200
250,273 242,073 275,226
33,153
33,153
(175,000) (115,014) (101,759) 13,255
75,273 127,059 173,467 46,408
595,672 595,672 595,672 -
$ 670,945 $ 722,731 $ 769,139 $ 46,408
CITY OF SEBASTIAN, FLORIDA
Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Stormwater Utility Special Revenue Fund
For the Year Ended September 30, 2015
Original Final
Budget Budget
Revenues
Charges for services $ 1,000,000 $ 1,000,000 $
Investment earnings 2,705 2,705
Total revenues
Expenditures
Current:
Physical environment
Revenues over (under) expenditures
Other financing uses
Transfers out
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
1,002,705 1,002,705
40,100
Actual Over
143,215
(Under) Final
Actual
Budget
987,440
$ (12,560)
1,197
(1,508)
988,637
(14,068)
40,100
222,540
143,215
(79,325)
962,605
780,165
845,422
65,257
(1,104,136)
(1,104,136)
(790,038)
314,098
(141,531)
(323,971)
55,384
379,355
44,915
44,915
44,915
-
$ (96,616) $ (279,056) $
.o,
100,299 $ 379,355
CITY OF SEBASTIAN, FLORIDA
Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Law Enforcement Forfeiture Special Revenue Fund
For the Year Ended September 30, 2015
Revenues
Fines
Investment earnings
Contributions
Total revenues
Expenditures
Current:
Public safety
Capital outlay
Total expenditures
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
16,881 17,268
1,150 (15,731) (14,671)
46,380 46,380 46,380
$ 47,530 $ 30,649 $ 31,709 $
91
387
1,060
1,060
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
$ 1,000
$ 1,000
$ 2,350
$ 1,350
150
150
247
97
1,150
1,150
2,597
1,447
-
16,881
17,268
387
16,881 17,268
1,150 (15,731) (14,671)
46,380 46,380 46,380
$ 47,530 $ 30,649 $ 31,709 $
91
387
1,060
1,060
CITY OF SEBASTIAN, FLORIDA
Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Discretionary Sales Surtax Revenue Note 2013 Debt
Service Fund
For the Year Ended September 30, 2015
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Miscellaneous revenue $ - $
- $
-
$
Investment earnings 2,086
2,086
823
(1,263)
Total expenditures 2,086
2,086
823
(1,263)
Expenditures
Debt service:
Principal 1,008,000
1,008,000
1,008,000
Interest and fiscal charges 21,307
21,307
21,307
Total expenditures 1,029, 307
1,029, 307
1,029, 307
Revenues over (under) expenditures (1,027,221)
(1,027,221)
(1,028,484)
(1,263)
Other financing sources
Transfers in 1,025,887
1,025,887
1,027,125
1,238
Net change in fund balance (1,334)
(1,334)
(1,359)
(25)
Fund balance, beginning of year 516,764
516,764
516,764
-
Fund balance, end of year $ 515,430 $
515,430 $
515,405
$ (25)
92
CITY OF SEBASTIAN, FLORIDA
Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Stormwater Utility Revenue Note Debt Service Fund
For the Year Ended September 30, 2015
Original Final
Budget Budget
Revenues
Miscellaneous revenue $ - $
Investment earnings 165
Total expenditures
Expenditures
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Revenues over (under) expenditures
Other financing sources
Transfers in
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Actual Over
(Under) Final
Actual Budget
165 557 392
165
165
557
392
352,000
352,000
352,000
-
51,588
51,588
51,588
403,588
403,588
403,588
-
(403,423)
(403,423)
(403,031)
392
403,423
403,423
401,737
(1,686)
-
-
(1,294)
(1,294)
168,169
168,169
168,169
$ 168,169 $
168,169 $
166,875 $
(1,294)
93
AGENCY FUND
94
CITY OF SEBASTIAN, FLORIDA
Combining Statement of Changes in Assets and Liabilities
Agency Fund
For the Year Ended September 30, 2015
Balance
October 1,
2014 Additions
Performance Deposits
Assets
Cash and cash equivalents
Investments, at fair value
Total assets
Liabilities
Performance deposits held in escrow
Balance
September 30,
Deletions 2015
$ 11,930 $ 20,911 $ - $ 32,841
220,000 - (146,250) 73,750
$ 231,930 $ 20,911 $ (146,250) $ 106,591
$ 231,930 $ - $ (125,339) $ 106,591
95
CAPITAL ASSETS
CITY OF SEBASTIAN, FLORIDA
Comparative Schedule by Source
Capital Assets Used in the Operation of Governmental Funds
September 30, 2015
97
2015
2014
Governmental funds capital assets
Land
$
8,319,588
$
8,319,588
Buildings and structures
12,609,808
12,545,658
Non -building improvements
6,833,246
6,730,855
Machinery and equipment
8,691,504
7,911,956
Infrastructure
39,186,897
37,856,694
Construction in progress
472,375
82,169
Total governmental funds capital assets
$
76,113,418
$
73,446,920
Investment in governmental funds capital assets (by sources)
Federal grants
$
5,605,250
$
5,330,341
State grants
2,575,775
2,376,907
County grants
720,500
717,371
General Fund
11,125,600
10,435,535
Law enforcement trust fund
67,980
66,288
Recreational impact fee
2,114,695
2,115,679
Stormwater utility fee
6,602,058
6,507,746
Riverfront redevelopment
2,110,000
2,094,387
Cemetery trust fund
525,710
539,509
Donations
2,695,000
2,678,221
Sales taxes
20,120,225
19,530,001
Motor fuel taxes
7,350,000
6,920,764
Revenue bond debt
13,995,750
14,022,676
Parking in Lieu of Fee
32,500
29,326
Capital projects
472,375
82,169
Total investment in governmental funds capital assets
$
76,113,418
$
73,446,920
97
CITY OF SEBASTIAN, FLORIDA
Schedule by Function and Activity
Capital Assets Used in the Operation of Governmental Funds
September 30, 2015
Construction in progress
Total
$ 76,113,418
Machinery
Non -Building
and
Functions / Programs
Land
Buildings
Improvements
Equipment
Infrastructure
Total
General government:
Legislative
$
$
$
$ 784
$
$ 784
City manager
24,443
24,443
City clerk
236,886
236,886
Finance
1,100
49,261
50,361
MIS
5,841
53,131
732,991
791,963
Facilities maintenance
195,717
21,187
157,100
374,004
Growth management
85,555
-
50,736
136,291
Non -departmental
3,646,929
6,184,990
126,636
204,374
52,699
10,215,628
Total general government
3,646,929
6,472,103
202,054
1,456,575
52,699
11,830,360
Public safety:
Special operations
-
-
-
69,843
-
69,843
Administration
9,560
3,347,154
89,322
327,841
3,773,877
School resource
-
-
-
44,077
44,077
Road patrol
2,667,234
2,667,234
Community policing
13,863
13,863
Code enforcement
-
82,183
82,183
Investigations
1,700
237,184
238,884
Support services
-
50,516
50,516
Communications
16,404
211,286
227,690
Building department
-
-
-
38,430
38,430
Total public safety
9,560
3,347,154
107,426
3,742,457
-
7,206,597
Transportation:
Central garage
-
130,489
115,232
176,428
674
422,823
Roads and drainage
47,125
166,907
1,083,234
874,860
17,651,822
19,823,948
Total transportation
47,125
297,396
1,198,466
1,051,288
17,652,496
20,246,771
Economic environment:
Non -departmental
2,308,392
1,040,589
6,562
-
-
3,355,543
Physical environment:
Stormwater
1,850
1,733,072
19,668,793
21,403,715
Cemetery
572,181
82,019
78,354
64,253
22,717
819,524
Total physical environment
572,181
82,019
80,204
1,797,325
19,691,510
22,223,239
Culture/ recreation:
Parks and recreation
1,735,401
1,370,547
5,238,534
643,859
1,790,192
10,778,533
Total
$ 8,319,588
$ 12,609,808
$ 6,833,246
$ 8,691,504
$ 39,186,897
75,641,043
Construction in progress
Total
$ 76,113,418
CITY OF SEBASTIAN, FLORIDA
Schedule of Changes by Function and Activity
Capital Assets Used in the Operation of Governmental Funds
September 30, 2015
Capital Assets
Capital Assets
October 1,
Transfers
Transfers September 30,
Functions / Programs
2014
Additions
Disposals
In
Out 2015
General government:
Judicial
$ 784
$ $
-
$ -
$ $ 784
City manager
3,690
1,612
22,365
24,443
City clerk
222,288
14,598
-
-
236,886
Administrative services
53,135
-
2,774
50,361
MIS
727,613
65,478
1,128
791,963
Facilities maintenance
288,203
101,177
15,376
374,004
Growth management
142,422
-
6,131
136,291
Non -departmental
10,215,628
-
-
-
10,215,628
Total general government
11,653,763
181,253
27,021
22,365
11,830,360
Public safety:
Special operations
54,625
15,218
-
-
69,843
Administration
3,744,094
29,783
3,773,877
School resource
44,077
-
-
44,077
Road patrol
2,551,708
230,051
70,412
44,113 2,667,234
Community policing
13,863
-
-
- 13,863
Code enforcement
53,779
28,404
-
- 82,183
Investigations
213,177
39,269
-
13,795
27,357 238,884
Support services
51,110
-
594
-
- 50,516
Communications
203,408
29,983
5,701
227,690
Building department
38,430
-
-
-
- 38,430
Total public safety
6,968,271
372,708
76,707
13,795
71,470 7,206,597
Transportation:
Central garage
370,440
35,599
6,798
23,582
- 422,823
Roads and drainage
18,692,920
1,265,917
97,511
-
37,378 19,823,948
Total transportation
19,063,360
1,301,516
104,309
23,582
37,378 20,246,771
Economic environment:
Non -departmental
3,355,543
-
-
-
- 3,355,543
Physical environment:
Stormwater
20,816,873
723,887
137,045
21,403,715
Cemetery
825,974
-
6,450
819,524
Total physical environment
21,642,847
723,887
143,495
22,223,239
Culture/ recreation:
Parks and recreation
10,680,966
163,761
115,299
49,105
- 10,778,533
Total
74,791,624
2,743,125
466,831
108,847
108,848 75,641,043
Construction in progress
82,169
411,752
21,546
-
- 472,375
Total
$ 74,835,220
$ 3,154,877 $
488,377
$ 108,847
$ 108,848 $ 76,113,418
M
INTERNAL CONTROL AND COMPLIANCE
100
Rehmann
Rebmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
March 10, 2016
Honorable Mayor and
Members of City Council
City of Sebastian
Sebastian, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States, the financial statements of the
governmental activities, the business -type activities, each major fund, and the aggregate remaining
fund information of the City of Sebastian, Florida (the "City"), as of and for the year ended
September 30, 2015, and the related notes to the financial statements, which collectively comprise
the City's basic financial statements, and have issued our report thereon dated February 26, 2016.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal
control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City's
internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal
control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies,
in internal control that is less severe than a material weakness, yet important enough to merit
attention by those charged with governance.
Rebmann is an independent member of Nexia International.
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Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies
may exist that were not identified. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion
on compliance with those provisions was not an objective of our audit, and accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance or other
matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
City's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
LLC
102
Rehmann
INDEPENDENT AUDITORS'
MANAGEMENT LETTER
March 10, 2016
Honorable Mayor and
Members of City Council
City of Sebastian
Sebastian, Florida
Report on the Financial Statements
Rebmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the financial statements of the City of Sebastian, Florida as of and for the fiscal year
ended September 30, 2015 and have issued our report thereon dated February 26, 2016.
Auditor's Responsibility
We conducted our audit in accordance with United States generally accepted auditing standards; the
standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States and Chapter 10.550, Rules of the Auditor General.
Other Reports and Schedule
We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and
Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance
with Government Auditing Standards; and Independent Accountant's Report on an examination
conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance
requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those
reports and schedule, which are dated March 13, 2015, should be considered in conjunction with this
management letter.
Prior Audit Findings
Section 10.554(1)(i)l., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address findings and recommendations made in the preceding
annual financial audit report. Corrective actions have been taken to address findings and
recommendations made in the preceding annual financial report.
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103 1NTrR NAT IONAI
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in
this management letter, unless disclosed in the notes to the financial statements. The legal authority
for the City of Sebastian, Florida is disclosed in the notes to the financial statements. The City of
Sebastian, Florida's component unit, the Police Officer's Pension Plan, was established under Section
58-46 through 58-54 Code of Ordinances in October 1989.
Financial Condition
Section 10.554(1)(i)5.a., Rules of the Auditor General, requires that we report the results of our
determination as to whether or not the City of Sebastian, Florida has met one or more of the
conditions described in Section 218.503(1), Florida Statutes, and identification of the specified
condition(s) met. In connection with our audit, we determined that the City of Sebastian, Florida did
not meet any of the conditions described in Section 218.503(1), Florida Statutes.
Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial
condition assessment procedures. It is management's responsibility to monitor the City of Sebastian,
Florida's financial condition, and our financial condition assessment was based in part on
representations made by management and the review of financial information provided by same.
Annual Financial Report
Section 10.554(1)(i)5.b., Rules of the Auditor General, requires that we report the results of our
determination as to whether the annual financial report for the City of Sebastian, Florida for the fiscal
year ended September 30, 2015, filed with the Florida Department of Financial Services pursuant to
Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the
fiscal year ended September 30, 2015. In connection with our audit, we determined that these two
reports were in agreement.
As required by the Rules of the Auditor General (Section 10.554(1)(i)2), the scope of our audit
included a review of the provisions of Section 218.415, Florida Statutes, regarding the investment of
public funds. In connection with our audit, we determined that the City of Sebastian, Florida complied
with Section 218.415, Florida Statutes.
Special District Component Units
Section 10.554(1)(i)5.d. Rules of the Auditor General, requires that we determine whether or not a
special district that is a component unit of a county, municipality, or special district, provided the
financial information necessary for proper reporting of the component unit, within the audited
financial statements of the county, municipality, or special district in accordance with Section
218.39(3)(b), Florida Statutes. In connection with our audit, we determined that all special district
component units provided the necessary information for proper reporting in accordance with Section
218.39(3)(b), Florida Statutes.
104
Other Matters
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management
letter any recommendations to improve financial management. In connection with our audit, we did
not have any such recommendations.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with
provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have
occurred, that have an effect on the financial statements that is less than material but which warrants
the attention of those charged with governance. In connection with our audit, we did not have any
such findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and Florida House of Representatives, the Florida Auditor
General, Federal and other granting agencies, the City Council, and applicable management, and is
not intended to be and should not be used by anyone other than these specified parties.
LLC
105
Rehmann
INDEPENDENT ACCOUNTANTS' REPORT
March 10, 2016
Honorable Mayor and
Members of City Council
City of Sebastian
Sebastian, Florida
Rebmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have examined the compliance of the City of Sebastian, Florida (the "City") with Sections 218.415,
28.35 and 28.36, Florida Statutes, during the year ended September 30, 2015. Management is
responsible for compliance with those requirements. Our responsibility is to express an opinion on the
City's compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants and, accordingly, include examining, on a test basis, evidence
about the City's compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances. We believe that our examination provides a reasonable
basis for our opinion. Our examination does not provide a legal determination on the City's
compliance with specified requirements.
In our opinion, the City complied, in all material respects, with the aforementioned requirements for
the year ended September 30, 2015.
Our management letter is intended solely for the information and use of management, the City Council
and the Florida Auditor General, and is not intended to be and should not be used by anyone other
than these specified parties.
-n� L LC
Rebmann is an independent member of Nexia International.
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106 1NTI RNAT IONAI
STATISTICAL SECTION
107
CITY OF SEBASTIAN, FLORIDA
M Statistical Section Table of Contents
This part of the City's Comprehensive Annual Financial Report presents detailed information to assist the
user in understanding what the financial statements, note disclosures and required supplementary
information say about the overall economic condition of the City of Sebastian, Florida.
Page
Financial Trends These schedules contain trend information to help the reader
understand and evaluate how the City's financial condition,
performance and well-being have changed over time. 109
Revenue Capacity These schedules contain information to help the reader assess
the City's ability to generate its most significant local revenue
source, the property tax. 119
Debt Capacity These schedules present information to help the reader assess
the affordability of the City's current levels of outstanding debt
and its ability to issue additional debt in the future. 127
Demographic and These schedules present various demographic and economic
Economic Information indicators to help the reader understand the environment within
which the City operates and how they affect the City's financial
activities. 133
Operating Information These schedules contain information about the City's operations
and resources to help the reader understand how the information
in the City's financial report relates to the services the City
provides and the activities it performs. 138
Sources: Unless otherwise noted, the information in these schedules is derived from the Comprehensive
Annual Financial Report for the relevant year. The City implemented GASB Statement No. 34 in 2001;
schedules presenting government -wide information include data beginning in that year.
108
CITY OF SEBASTIAN, FLORIDA
Net Position by Component
Last Ten Fiscal Years
Governmental activities
Net investment in capital assets
Restricted
Unrestricted
Total governmental activities net position
Business -type activities
Net investment in capital assets
Restricted
Unrestricted
Total business -type activities net position
Primary Government
Net investment in capital assets
Restricted
Unrestricted
Total primary government net position
Fiscal Yea
2015 20MO 2013 ,AM 201= 0 2011M
$ 35,220,857 $ 35,210,526 $ 32,038,749 $ 31,500,173 $ 31,541,953
4,997,724 5,115,627 5,839,440 6,192,777 5,668,155
3,467,014 3,330,400 4,577,440 3,607,228 4,052,751
$ 43,685,595 $ 43,656,553 $ 42,455,629 $ 41,300,178 $ 41,262,859
$10,517,895 $ 10,439,804 $ 10,846,501 $ 11,181,823 $ 11,850,561
67,779 (103,116) (306,497) (490,298) (644,620)
$ 10,585,674 $ 10,336,688 $ 10,540,004 $ 10,691,525 $ 11,205,941
$ 45,738,752 $ 45,650,330 $ 42,885,250 $ 42,681,996 $ 43,392,514
4,997,724 5,115,627 5,839,440 6,192,777 5,668,155
3,534,793 3,227,284 4,270,943 3,116,930 3,408,131
$ 54,271,269 $ 53,993,241 $ 52,995,633 $ 51,991,703 $ 52,468,800
109
Table 1 - Unaudited
cal Yea
M 2018"M oh,2009 ' 2008 ]I i 2007 2006
$ 28,938,587 $ 26,744,896 $ 24,133,550 $ 21,469,456 $ 17,579,683
8,757,043 8,197,018 9,215,801 9,419,129 5,068,583
3,889,011 4,502,440 5,035,184 5,249,998 11,293,877
$ 41,584,641 $ 39,444,354 $ 38,384,535 $ 36,138,583 $ 33,942,143
$ 11,389,704 $ 10,725,676 $ 9,111,251 $ 8,895,501 $ 8,798,612
- 98,320 570,149 570,890 560,581
(342,340) 86,517 753,076 1,303,886 1,896,539
$ 11,047,364 $ 10,910,513 $ 10,434,476 $ 10,770,277 $ 11,255,732
$ 40,328,291 $ 37,470,572 $ 33,244,801 $ 30,364,957 $ 26,378,295
8,757,043 8,295,338 9,785,950 9,990,019 5,629,164
3,546,671 4,588,957 5,788,260 6,553,884 13,190,416
$ 52,632,005 $ 50,354,867 $ 48,819,011 $ 46,908,860 $ 45,197,875
110
CITY OF SEBASTIAN, FLORIDA
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year
2015 2014 2013 2012 2011
Expenses
Governmental activities:
1,409,829
1,406,770
1,377,039
1,394,731
1,355,266
General government
$ 3,015,536
$ 2,923,398
$ 2,784,485
$ 2,640,677
$ 2,766,575
Public safety
5,164,197
4,908,374
4,928,203
5,025,274
5,546,632
Physical environment
2,759,461
2,310,539
2,039,380
2,007,902
1,558,974
Transportation
2,024,814
1,828,569
1,845,429
1,800,432
2,263,367
Economic environment
194,630
247,891
155,214
170,960
208,518
Culture and recreation
1,293,246
1,229,369
1,232,345
1,239,512
1,227,198
Interest on debt
100,468
235,071
368,432
562,496
546,103
Total governmental activities expenses
14,552,352
13,683,211
13,353,488
13,447,253
14,117,367
Business -type activities:
Golf Course
1,409,829
1,406,770
1,377,039
1,394,731
1,355,266
Airport
1,038,361
1,031,464
1,146,905
1,166,588
1,188,788
Building'
531,087
465,717
417,887
397,295
470,406
Total business -type activities expenses
2,979,277
2,903,951
2,941,831
2,958,614
3,014,460
Total primary government expenses
$ 17,531,629
$ 16,587,162
$ 16,295,319
$ 16,405,867
$ 17,131,827
Program Revenue
Governmental activities:
Charges for services:
1,333,189
1,277,660
1,302,441
1,394,844
1,382,421
General government
$ 372,255
$ 407,068
$ 3147158
$ 214,488 $
1977945
Public safety
80,763
76,132
67,297
66,474
92,350
Physical environment
1,087,642
1,073,015
1,101,864
876,693
868,059
Culture and recreation
67,940
67,371
70,982
66,954
61,353
Operating grants and contributions
345,937
186,295
332,627
187,333
196,534
Capital grants and contributions
994,546
739,785
770,123
791,265
838,242
Total governmental activities program revenue
2,949,083
2,549,666
2,657,051
2,203,207
2,254,483
Business -type activities:
Charges for services:
Golf Course
1,333,189
1,277,660
1,302,441
1,394,844
1,382,421
Airport
457,318
470,703
481,759
491,367
485,229
Building '
712,620
700,751
706,964
419,705
401,021
Operating grants and contributions
-
-
-
-
-
Capitalgrants and contributions
702,154
235,215
230,868
150,083
900,340
Total business -type activities program revenue
3,205,281
2,684,329
2,722,032
2,455,999
3,169,011
Total primary government program revenue
$ 6,154,364
$ 5,233,995
$ 5,379,083
$ 4,659,206 $
5,423,494
Net(expense)revenue
Governmental activities $ (11,603,269) $ (11,133,545) $ (10,696,437) $ (11,244,046) $ (11,862,884)
Business -type activities 226,004 (219,622) (219,799) (502,615) 154,551
Total primary government net
(expense) revenue $ (11,377,265) $ (11,353,167) $(10,916,236) $ (11,746,661) $ (11,708,333)
111
Table 2 - Unaudited
Fiscal Year
2010 2009 2008 2007 2006
$ 3,309,381 $ 3,169,851 $ 3,375,178 $ 3,083,609 $ 3,129,723
5,720,933
5,420,585
5,226,512
5,377,107
4,191,295
1,947,605
1,347,771
1,805,755
1,695,066
2,193,589
1,863,551
3,437,724
2,111,360
2,276,497
2,173,071
135,885
167,470
113,101
605,510
98,661
1,240,383
1,073,249
1,420,734
1,237,398
1,208,288
566,410
730,100
634,891
667,950
706,303
14,784,148
15,346,750
14,687,531
14,943,137
13,700,930
1,388,158
1,477,299
1,488,472
1,533,900
1,558,338
1,067,525
1,079,869
1,099,653
1,046,994
801,967
496,800
533,641
605,422
905,452
936,793
2,952,483
3,090,809
3,193,547
3,486,346
3,297,098
$ 17,736,631 $ 18,437,559 $ 17,881,078 $ 18,429,483 $ 16,998,028
$ 203,915
$ 220,073
$ 353,836 $
422,897 $
533,482
118,368
95,606
85,009
92,853
140,545
881,338
908,829
903,285
891,021
887,819
62,046
66,540
83,378
85,945
72,472
210,050
228,002
786,016
192,676
407,898
3,178,618
1,865,174
835,607
1,014,481
1,301,438
4,654,335
3,384,224
3,047,131
2,699,873
3,343,654
1,335,647
1,406,956
1,438,233
1,652,288
1,580,407
468,698
438,485
523,989
344,813
375,768
356,264
358,947
347,189
408,875
1,220,823
-
-
-
-
6,998
904,853
1,356,914
494,098
500,428
1,056,562
3,065,462
3,561,302
2,803,509
2,906,404
4,240,558
$ 7,719,797 $ 6,945,526 $ 5,850,640 $ 5,606,277 $ 7,584,212
$ (10,129,813) $ (11,962,526) $ (11,640,400) $ (12,243,264) $ (10,357,276)
112,979 470,493 (390,038) (579,942) 943,460
$ (10,016,834) $ (11,492,033) $ (12,030,438) $ (12,823,206) $ (9,413,816)
continued...
112
CITY OF SEBASTIAN, FLORIDA
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year
2015 2014 2013 2012 2011
General revenue and other changes in net position
Governmental Activities:
5,368
1,484
4,391
6,563
4,026
Property taxes, levied for general purposes $
3,594,210
$ 3,248,113
$ 3,221,304
$ 3,063,495
$ 3,453,778
Sales and use taxes
5,555,270
5,320,051
5,123,046
4,852,413
4,751,021
Franchise fees
1,241,515
1,190,233
1,118,886
1,124,568
1,184,686
State shared revenues not restricted
13,087,537
$ 12,350,775
$ 11,921,297
$ 11,269,564 $
11,545,128
to specific programs
2,365,137
2,208,700
2,063,450
1,934,733
1,868,555
Investment earnings
65,256
43,293
74,650
82,129
111,943
Miscellaneous
240,179
338,901
315,296
201,538
171,119
Transfers
2,988
(14,822)
(37,734)
22,489
-
Total governmental activities
13,064,555
12,334,469
11,878,898
11,281,365
11,541,102
Business -type activities:
Investment earnings
5,368
1,484
4,391
6,563
4,026
Miscellaneous
20,602
-
274
4,125
-
Transfers
(2,988)
14,822
37,734
(22,489)
-
Total business -type activities
22,982
16,306
42,399
(11,801)
4,026
Total primary government general revenue $
13,087,537
$ 12,350,775
$ 11,921,297
$ 11,269,564 $
11,545,128
Change in net position
Governmental activities $
1,461,286
$ 1,200,924
$ 1,182,461
$ 37,319 $
(321,782)
Business -type activities
248,986
(203,316)
(177,400)
(514,416)
158,577
Total primary government change in net position $
1,710,272
$ 997,608
$ 1,005,061
$ (477,097) $
(163,205)
113
Fiscal Year
2010 2009 2008 2007 2006
$ 4,164,128 $ 4,801,924 $ 5,149,047 $ 5,089,841 $ 4,645,050
4,765,200 4,670,106 4,753,718 4,776,691 4,907,906
1,228,692 1,327,253 1,199,762 1,106,698 1,253,749
1,825,215
1,821,347
1,989,606
2,083,523
2,242,292
144,432
261,203
634,919
1,147,931
827,224
149,453
140,512
159,300
192,300
256,780
(7,020)
-
-
42,720
(1,414,205)
12,270,100
13,022,345
13,886,352
14,439,704
12,718,796
15,658 5,544 54,237 137,207 125,498
1,194 - - - -
7,020 - - (42,720) 1,414,205
23,872 5,544 54,237 94,487 1,539,703
$ 12,293,972 $ 13,027,889 $ 13,940,589 $ 14,534,191 $ 14,258,499
$ 2,140,287 $ 1,059,819 $ 2,245,952 $ 2,196,440 $ 2,361,520
136,851 476,037 (335,801) (485,455) 2,483,163
$ 2,277,138 $ 1,535,856 $ 1,910,151 $ 1,710,985 $ 4,844,683
concluded
114
CITY OF SEBASTIAN, FLORIDA
Fund Balances, Governmental Funds
Last Ten Fiscal Years
Governmental funds
General Fund:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total General Fund
All other governmental funds:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total all other governmental funds
Total governmental funds
Fiscal Year
2015 2014 2013
$ 316,036
$ 369,329
$ 368,564 $
38,544
7,969
28,632
8,692
7,129
7,020
5,289,322
5,348,905
5,065,242
589,364
719,686
-
5,652,594
5,733,332
5,469,458
2012 2011
370,450 $ 346,995
2,861,708
2,949,139
35,707
21,911
1,734,307
1,784,413 z
5,002,172
5,102,458
928,758
1,390,073
1,323,838
1,289,693
1,494,779
4,181,787
3,756,950
4,647,950
4,371,826
4,748,376
815,688
625,007
589,364
719,686
-
(58,618)
(64,875)
-
-
-
5,867,615
5,707,155
6,561,152
6,381,205
6,243,155
$ 11,520,209
$ 11,440,487
$ 12,030,610
$ 11,383,377
$ 11,345,613
' The significant reduction in restricted fund balance reported in all other governmental funds from 2008 to 2009 is a result of the
significant completion of the Indian River Drive/Main Street and Pedestrian Bridge projects, along with the significant construction
completed on the Collier Canal Retrofit project.
Z Reduction in unassigned fund balance to fund operations
115
Fiscal Year
2010 2009 200$
$ 352,248 $ 357,696 $
3,063,585 3,083,463
31,656 1,983
2,164,910 2,324,972
5,612,399 5,768,114
Table 3 - Unaudited
2007 2006
381,528 $ 368,609 $ 106,192
3,502,560
3,742,617
4,844,674
33,453
19,055
9,856
2,390,641
2,260,507
1,518,350
14,783,299
6,308,182
6,390,788
6,479,072
859,463
830,029
771,927
694,506
656,160
7,897,580
8,557,389 '
12,446,260
12,926,545
14,783,299
13,218,187
13,621,051
15,439,459
8,757,043
9,387,418
$ 14,369,442
$ 15,155,532 $
19,526,369
$ 20,011,839
$ 21,918,531
116
CITY OF SEBASTIAN, FLORIDA
Changes in Fund Balances For Governmental Funds
For the Last Ten Fiscal Years
Other Financing Sources (Uses)
Issuance of long-term debt
-
-
Fiscal Year
2,296,000
-
Transfers in
2015
2014
2013
2012
2011
Revenues
(4,986,738)
(3,918,026)
(3,636,683)
(3,672,276)
(5,376,658)
Taxes
$ 9,782,109
$ 9,123,879
$ 8,894,880
$ 8,465,990
$ 8,762,729
Franchise fees
1,241,515
1,190,233
1,118,886
1,124,568
1,184,686
Charges for services
147,219
138,564
45,500
22,431
1,121,967
Licenses, fees and permits
2,742,950
2,373,695
2,411,395
2,088,038
23,646
Fines and penalties
281,450
168,350
169,000
58,500
81,534
Intergovernmental
1,397,395
1,431,101
1,462,522
1,158,075
2,249,447
Impact fees
63,035
54,140
60,190
57,575
42,250
Special assessments
65,256
43,293
78,411
86,516
-
Investment earnings
48,124
36,801
22,406
216,091
103,795
Otherrevenues
241,597
338,901
315,296
201,888
224,823
Total revenues
16,010,650
14,898,957
14,578,486
13,479,672
13,794,877
Expenditures
Current:
General government
2,717,049
2,575,605
2,447,893
2,410,345
2,539,211
Public safety
4,666,343
4,623,060
4,425,000
4,523,802
5,030,708
Physical environment
1,498,706
1,110,788
1,075,162
1,042,349
1,166,309
Transportation
1,187,871
1,165,004
1,158,945
1,208,411
1,217,521
Economic environment
161,545
144,612
122,730
138,531
188,918
Culture and recreation
893,394
888,795
847,781
876,502
903,836
Debt service:
Principal
1,567,000
2,306,000
1,307,000
3,321,000
1,203,000
Interest
108,678
413,995
393,447
472,399
521,152
Capital outlay
3,133,330
2,246,399
2,115,561
1,767,058
4,048,051
Total expenditures
15,933,916
15,474,258
13,893,519
15,760,397
16,818,706
Revenues over (under) expenditures
76,734
(575,301)
684,967
(2,280,725)
(3,023,829)
Other Financing Sources (Uses)
Issuance of long-term debt
-
-
-
2,296,000
-
Transfers in
4,989,726
3,903,204
3,598,949
3,694,765
5,376,658
Transfers out
(4,986,738)
(3,918,026)
(3,636,683)
(3,672,276)
(5,376,658)
Total other financing sources (uses)
2,988
(14,822)
(37,734)
2,318,489
Net change in fund balances
$ 79,722 $
(590,123) $
647,233 $
37,764 $
(3,023,829)
Debt service as a percentage of
noncapital expenditures (1)
11.8%
19.8%
14.0%
27.1%
13.5%
To calculate the ratio, divide the total debt service expenditures (principal plus interest) by total noncapital
expenditures (the difference between the total expenditures and capitalized capital outlay expenditure).
117
Table 4 - Unaudited
2,699,289
2,976,896
Fiscal Year
2,999,652
2,494,863
2010
2009
2008
2007
2006
$ 9,525,074
$ 10,065,806
$ 10,504,155
$ 10,554,617
$ 10,269,451
1,228,692
1,327,253
1,199,762
1,106,698
1,253,749
1,154,739
1,186,161
1,209,617
1,271,102
517,605
33,182
29,151
163,471
186,875
244,370
90,948
88,938
65,246
71,314
77,776
4,572,550
3,270,854
2,674,761
2,463,628
2,852,293
26,000
13,975
32,825
56,875
337,675
-
3,849
-
-
819,286
228,216
250,914
647,312
1,062,043
827,224
169,039
176,430
461,553
244,629
294,695
17,028,440
16,413,331
16,958,702
17,017,781
17,494,124
2,699,289
2,976,896
3,087,789
2,999,652
2,494,863
4,938,147
4,926,714
4,677,618
4,700,447
3,813,908
1,210,823
1,448,067
1,368,593
1,301,719
1,850,642
1,405,310
1,696,254
1,545,045
1,733,697
1,672,983
129,352
167,470
113,101
80,279
98,661
977,780
1,148,408
1,079,379
975,087
926,846
2,142,190 1,218,995 1,326,182 1,284,418 1,248,378
577,593 706,093 611,554 643,305 678,682
6,189,026 6,495,271 3,634,910 5,242,590 1,451,060
20,269,510 20,784,168 17,444,171 18,961,194 14,236,023
(3,241,070) (4,370,837) (485,469) (1,943,413) 3,258,101
2,462,000 - - - -
4,486,626 5,196,376 5,679,896 5,158,296 3,785,981
(4,493,646) (5,196,376) (5,679,896) (5,115,576) (5,200,186)
2,454,980 42,720 (1,414,205)
$ (786,090) $ (4,370,837) $ (485,469) $ (1,900,693) $ 1,843,896
19.3% 13.5% 14.0% 14.1% 15.1%
118
CITY OF SEBASTIAN, FLORIDA
Program Revenues by Function/Program
Last Ten Fiscal Years
Program Revenues
Governmental activities:
General government
Public safety
Physical environment
Transportation
Economic environment
Culture and recreation
Total governmental activities
Business -type activities:
Charges for services:
Golf Course
Airport
Building'
Total business -type activities
Total primary government
1,333,189
1,277,660
Fiscal Year
1,394,892
1,382,421
2015
2014
2013
2012
2011
$ 534,524 $
413,727
$ 471,299 $
230,550
$ 243,039
254,381
246,010
233,309
228,392
234,437
1,087,642
1,073,015
1,101,864
876,693
930,018
643,146
565,692
560,713
560,055
743,383
-
15,501
-
13,998
-
429,390
235,721
289,866
293,519
103,606
2,949,083
2,549,666
2,657,051
2,203,207
2,254,483
1,333,189
1,277,660
1,302,441
1,394,892
1,382,421
1,159,472
705,918
712,627
641,455
1,385,569
712,620
700,751
706,964
426,215
401,021
3,205,281
2,684,329
2,722,032
2,462,562
3,169,011
$ 6,154,364 $
5,233,995 $
5,379,083 $
4,665,769
$ 5,423,494
' The significant increase in business -type activities for the airport from 2008 to 2009 is mainly due to capital grant funding from the
Florida Department of Transportation and the Federal Aviation Administration.
119
Table 5 - Unaudited
Fiscal Year
2010 2009 2008 2007 2006
$ 209,144 $
226,003
$ 377,305 $
450,267 $
579,591
304,630
299,119
515,997
249,756
306,702
881,338
1,408,829
1,256,277
891,021
890,092
614,305
612,335
619,949
721,103
900,365
2,556,872
6,000
-
-
30,059
88,046
831,938
277,603
387,726
636,845
4,654,335
3,384,224
3,047,131
2,699,873
3,343,654
1,335,647
1,406,955
1,438,233
1,652,288
1,587,405
1,373,551
1,795,399 '
1,018,087
845,241
1,432,330
356,264
358,948
347,189
408,875
1,220,823
3,065,462
3,561,302
2,803,509
2,906,404
4,240,558
$ 7,719,797 $ 6,945,526 $ 5,850,640 $ 5,606,277 $ 7,584,212
120
CITY OF SEBASTIAN, FLORIDA
Table 6
- Unaudited
Tax Revenue by Source
Governmental Funds
For the Last Ten Fiscal Years
(Rate per $1,000 of assessed value)
Fiscal Year
IEnded
Property
Public
Sales
Motor
Millage
Tax Year September 30
Taxes
Utility
Tax
Fuel
Total
Rate
2005 2006 $
4,645,050
$ 2,183,164
$ 2,724,742
$ 716,495
$ 10,269,451
3.9325
2006 2007
5,089,841
2,216,381
2,560,310
688,085
10,554,617
3.0519
2007 2008
5,149,047
2,250,781
2,502,937
601,390
10,504,155
2.9917
2008 2009
4,801,924
2,341,458
2,328,648
593,776
10,065,806
3.3456
2009 2010
4,164,128
2,437,050
2,328,150
595,746
9,525,074
3.3456
2010 2011
3,453,778
2,392,345
2,358,676
557,930
8,762,729
3.3041
2011 2012
3,063,495
2,387,553
2,464,240
550,702
8,465,990
3.3041
2012 2013
3,221,304
2,534,434
2,587,903
551,239
8,894,880
3.7166
2013 2014
3,248,113
2,581,427
2,738,405
555,934
9,123,879
3.7166
2014 2015
3,594,210
2,638,711
2,916,092
633,096
9,782,109
3.8556
121
CITY OF SEBASTIAN, FLORIDA
Direct and Overlapping Property Tax Rates
For the Last Ten Fiscal Years
(Rate per $1,000 of taxable value)
Table 7 - Unaudited
' Tax rates are uniformly applied to taxable values based on a single millage rate determined by each taxing entity. The millage rate is expressed as $1.00
per $1,000 of the taxable value.
z Millage includes General Fund, MSTUs, Emergency Services District and Land Bonds
All Special Taxing Districts
Source: Indian River County Property Appraiser's Office
122
City Direct Rates
Overlapping Rates
County
School Board
Tax
Fiscal
Basic
Debt
Total
Total
Basic
Debt
Year
Year
Rate
Service
Direct
County '
Rate
Service
Total
Other
2005
2006
3.9325
0.0000
3.9325
5.6904
7.8800
0.3600
8.2400
1.60850
2006
2007
3.0519
0.0000
3.0519
5.3661
7.1630
0.2800
7.4430
1.47940
2007
2008
2.9917
0.0000
2.9917
5.1485
7.2680
0.2700
7.5380
1.38160
2008
2009
3.3456
0.0000
3.3456
6.2861
6.7600
0.2800
7.0400
1.11204
2009
2010
3.3456
0.0000
3.3456
6.2693
7.2960
0.3000
7.5960
1.33570
2010
2011
3.3041
0.0000
3.3041
6.2860
7.9200
0.3000
8.2200
1.35050
2011
2012
3.3041
0.0000
3.3041
6.9590
7.8940
0.3500
8.2440
1.35460
2012
2013
3.7166
0.0000
3.7166
6.2572
7.9230
0.3900
8.3130
1.35460
2013
2014
3.7166
0.0000
3.7166
5.6207
8.1160
-
8.1160
1.71280
2014
2015
3.8556
0.0000
3.8556
5.6868
7.9950
7.9950
1.71260
' Tax rates are uniformly applied to taxable values based on a single millage rate determined by each taxing entity. The millage rate is expressed as $1.00
per $1,000 of the taxable value.
z Millage includes General Fund, MSTUs, Emergency Services District and Land Bonds
All Special Taxing Districts
Source: Indian River County Property Appraiser's Office
122
CITY OF SEBASTIAN, FLORIDA
Actual Value of Taxable Property
For the Last Ten Fiscal Years
Real Property
Personal Property
Tax
Fiscal
Assessed
Estimated
Assessed
Estimated
Year
Year
Value
Actual Value
Value
Actual Value
2005
2006
$ 1,526,923,406
$ 1,908,654,258 $
51,827,624
$ 51,827,624
2006
2007
2,124,615,672
2,655,769,590
55,913,696
55,913,696
2007
2008
2,054,408,055
2,568,010,069
64,899,942
64,899,942
2008
2009
1,933,934,630
2,417,418,288
62,476,508
62,476,508
2009
2010
1,650,311,449
2,062,889,311
56,920,223
56,920,223
2010
2011
1,392,267,434
1,740,334,293
55,234,086
55,234,086
2011
2012
1,273,059,710
1,591,324,639
48,922,492
48,922,492
2012
2013
1,210,328,690
1,512,910,863
47,410,545
47,410,545
2013
2014
1,267,035,970
1,583,794,963
53,045,209
53,045,209
2014
2015
1,363,105,220
1,703,881,525
55,646,868
55,646,868
Source: Indian River County Property Appraiser
80%
70%
60%
50%
40%
30%
20%
10%
0%
Ratio of Taxable to Actual Value
66.7% 68.5% 67.8%
X32% 4.-2%
F 55-.0% 53.5% 52.6/ 0 54.3% 55.G%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Fiscal Year
123
Table 8 - Unaudited
M
Less: Total Total Ratio of I
Tax -Exempt Taxable Estimated Taxable to
Property Value Actual Value Actual Value
$ 271,466,364 $ 1,307,284,666 $ 1,960,481,882 66.7%
322,318,753 1,858,210,615 2,711,683,286 68.5%
334,302,515 1,785,005,482 2,632,910,011 67.8%
676,808,522 1,319,602,616 2,479,894,796 53.2%
558,090,532 1,149,141,140 2,119,809,534 54.2%
460,752,786 986,748,734 1,795,568,379 55.0%
444,524,142 877,458,060 1,640,247,130 53.5%
437,040,114 820,699,121 1,560,321,408 52.6%
435,071,311 885,009,868 1,631,207,528 54.3%
451,939,888 966,812,200 1,756,926,734 55.0%
124
CITY OF SEBASTIAN, FLORIDA
Principal Property Tax Payers
Current Year and Nine Years Ago
Taxable
Assessed
Taxpayer
2006 Fiscal Year
Value
Florida Power Et Light (Utility/ Electric) $
17,335,28
Wal-Mart Stores, Inc. (Retail)
8,599,80
Comcast of Florida, Inc. (Communications)
7,406,97
Park Place Community, LLC (Rental/Retail)
6,883,41
BW US 1, Inc. (Commercial)
6,219,10
CR512 Shopping Center (Commercial)
5,984,53
Hartwell Groves, Inc. (Agriculture)
4,396,18
Bellsouth Communications (Utility/Telephone)
4,105,10
Sebastian Inlet Marina Et Trading Co, Inc.
Assessed
(Restaurant/ Hotel)
3,665,33
Sebastian Medical Suites LLC (Commercial)
3,563,63
Chance Holding LLC (Development)
KB Homes Treasure Coast LLC (Construction)
Maronda Homes, Inc. (Construction)
Adams Homes of Northwest FL (Construction)
Table 9 - Unaudited
2015 Fiscal Year
2006 Fiscal Year
Percentage
Percentage
of Total City
of Total City
Taxable
Taxable
Taxable
Assessed
Assessed
Assessed
Rank
Value
Value
Rank
Value
9 1
1.79 %
$ 16,484,295
1
1.45 %
0 2
0.89
12,293,340
3
1.08
3 3
0.77
-
-
7 4
0.71
5,897,160
10
0.52
0 5
0.64
6,863,460
9
0.61
0 6
0.62
7,368,920
7
0.65
0 7
0.45
-
-
5 8
0.42
7,344,000
8
0.65
0 9 0.38
0 10 0.37 -
- - 12,308,330 2
11,865,150 4
8,979,100 5
8,312,010 6
$ 68,159,354 7.05 % $ 97,715,765
Total Taxable Value $ 966,812,200 $ 1,133,374,977
Source: Indian River County Property Appraiser
Concentration of 2015 Taxpayers
92.95%
7.05%
■Top Ten Taxpayers ®All Other Taxpayers
125
1.09
1.05
0.79
0.73
8.62 %
CITY OF SEBASTIAN, FLORIDA
Property Tax Levies and Collections
For the Last Ten Fiscal Years
Collected within the
Fiscal Year of the Le
Table 10 - Unaudited
Source: Indian River County Property Appraiser and Department of Revenue, Certification of Final Taxable Value, DR -422
20
18
16
14
12
0
10
8
6
4
2
Total Tax Collections
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Fiscal Year
126
ry
Total Collections to Date
Taxes Levied
Delinquent and
Tax
Fiscal
for the
Percentage
Penalty Tax
Percentage
Year
Year
Fiscal Year
Amount
of Levy
Collections
Amount
of Levy
2005
2006
$ 4,426,281
$ 4,300,217
97.15
$ 39
$ 4,300,256
97.15
2006
2007
4,747,938
4,537,100
95.56
9,429
4,546,529
95.76
2007
2008
4,919,994
4,634,338
94.19
2,906
4,637,244
94.25
2008
2009
4,441,535
4,225,106
95.13
1,694
4,226,800
95.17
2009
2010
3,844,658
3,716,797
96.67
17,723
3,734,520
97.14
2010
2011
3,260,316
3,144,864
96.46
11,294
3,156,158
96.81
2011
2012
2,899,209
2,799,146
96.55
9,279
2,808,425
96.87
2012
2013
3,050,099
2,947,248
96.63
7,733
2,954,981
96.88
2013
2014
3,074,729
2,975,299
96.77
754
2,976,053
96.79
2014
2015
3,422,716
3,295,549
96.28
2,241
3,297,790
96.35
Source: Indian River County Property Appraiser and Department of Revenue, Certification of Final Taxable Value, DR -422
20
18
16
14
12
0
10
8
6
4
2
Total Tax Collections
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Fiscal Year
126
CITY OF SEBASTIAN, FLORIDA
Ratios of Outstanding Debt By Type
For the Last Ten Fiscal Years
Table 11 - Unaudited
Roadway
Infrastructure
Fiscal
Improvement
Sales Tax
Year
Notes
Bonds/Notes
1
2006
$ 1,790,544
$ 9,825,000 $
2007
1,566,839
9,145,000
2008
1,333,197
8,445,000
2009
1,089,203
7,725,000
2010
2,414,000
6,980,000
2011
2,246,000
6,215,000
2012
2,296,000
5,420,000
2013
2,099,000
4,600,000
2014
1,896,000
2,730,000
2015
1,689,000
1,722,000
Table 11 - Unaudited
1. The Infrastructure Sales Tax and Stormwater Utility Revenue Bonds were refunded in 2014 with Bank Notes.
2. A bank note was issued in 2014 for the purchase of golf carts.
3. Information net yet available.
80.00
60.00
c
0
40.00
20.00
Primary Government Debt
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Fiscal Year
127
Business -Type
Activities
Heavy
Stormwater
Golf Course
Total
Percentage
Equipment
Utility Revenue
Revenue
Primary
of Personal
Per
Lease
Bonds/Notes
Bonds
Government
Income
Capita
1
2
288,251
$ 5,055,000
$ 1,140,000
$ 18,098,795
25%
835
147,538
4,815,000
870,000
16,544,377
22%
738
-
4,570,000
590,000
14,938,197
19%
652
4,315,000
300,000
13,429,203
21%
591
4,055,000
-
13,449,000
20%
587
3,785,000
12,246,000
17%
558
3,505,000
11,221,000
15%
510
3,215,000
9,914,000
13%
447
2,982,000
7,608,000
8%
341
2,630,000
6,041,000
(3)
267
1. The Infrastructure Sales Tax and Stormwater Utility Revenue Bonds were refunded in 2014 with Bank Notes.
2. A bank note was issued in 2014 for the purchase of golf carts.
3. Information net yet available.
80.00
60.00
c
0
40.00
20.00
Primary Government Debt
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Fiscal Year
127
CITY OF SEBASTIAN, FLORIDA
Ratios of General Bonded Debt Outstanding
For the Last Ten Fiscal Years
Table 12 - Unaudited
Percentage of
General Bonded Debt Outstanding
Fiscal
Capita
Applicable
Legal
Year
Debt Limit
to Limit
Debt Margin
2006
$ 65,364,233
$ 16,958,795
$ 48,405,438
2007
92,910,531
15,674,377
77,236,154
2008
89,250,574
14,348,197
74,902,377
2009
65,980,131
13,129,203
52,850,928
2010
57,457,057
13,449,000
44,008,057
2011
49,337,437
12,246,000
37,091,437
2012
43,872,903
11,221,000
32,651,903
2013
41,034,956
9,914,000
31,120,956
2014
44,250,493
7,608,000
36,642,493
2015
48,340,610
6,041,000
42,299,610
Table 12 - Unaudited
Percentage of
Per
Debt Limit
Capita
25.95%
$ 2,234
16.87%
3,444
16.08%
3,267
19.90%
2,326
23.41%
1,920
24.82%
1,691
25.58%
1,485
24.16%
1,403
17.19%
1,643
12.50%
1,870
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
128
CITY OF SEBASTIAN, FLORIDA
Legal Debt Margin Information
For the Last Ten Fiscal Years
Legal Debt Margin as a Percentage of Debt Limit
Debt limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the
limit as a percentage of debt limit
Fiscal Year
2015 2014 2013 2012 2011
$ 48,340,610 $ 44,250,493 $ 41,034,956 $ 43,872,903 $ 49,337,437
6,041,000 7,608,000 9,914,000 11,221,000 12,246,000
$ 42,299,610 $ 36,642,493 $ 31,120,956 $ 32,651,903 $ 37,091,437
12.50% 17.19% 24.16% 25.58% 24.82%
1 Legal Debt Margin Calculation for Fiscal Year 2015
Assessed value $1,418,752,088
Less: Exempt property (451,939,888)
966,812,200
Debt limit (5% of assessed value) 48,340,610
Debt applicable to limit:
General obligation bonds
Revenue bonds/notes
Total net debt applicable to limit
Legal debt margin
6,041,000
6,041,000
$ 42,299,610
Direct and Overlapping Governmental Activities Debt - General Obligations Bonds
The City of Sebastian has no overlapping general obligation bonded debt for the year ended September 30, 2015.
129
Table 13 - Unaudited
Fiscal Year
W2010 2009 2008 2007 2006
$ 57,457,057 $ 65,980,131 $ 89,250,274 $ 92,910,531 $ 65,364,233
13,449,000 13,129,203 14,348,197 15,674,377 16,958,795
$ 44,008,057 $ 52,850,928 $ 74,902,077 $ 77,236,154 $ 48,405,438
23.41% 19.90% 16.08% 16.87% 25.95%
130
CITY OF SEBASTIAN, FLORIDA
Pledged -Revenue Coverage _
For the Last Ten Fiscal Years
Recreational Facilities Improvement and Refunding Revenue Bonds, Series 2001
Debt Service
Less: Net
Fiscal Gross Operating Available
Year Revenue' Expenses Revenue Principal Interest Total Coverage
2006 $ 1,628,015 $ 1,165,411 $ 462,604 $ 250,000 $ 61,690 $ 311,690 1.48
2007 1,701,171 1,218,382 482,789 255,000 51,590 306,590 1.57
2008 1,455,749 1,174,169 281,580 270,000 41,090 311,090 0.91
2009 1,408,535 1,178,144 230,391 570,000 49,860 619,860 0.37
2010 1,341,555 1,129,651 211,904 300,000 21,700 321,700 0.66
2011 - - - - - - -
2012
2013
2014
2015
Note: Detail regarding the City's outstanding debt can be found in the notes to the financial statements.
' Total revenues including charges for services, rents and interest.
z Total direct operating expenses excludes depreciation, amortization, annual Airport lease payment and one time hurricane repair cost.
3 Required coverage was 1.25. Final payment was made on September 30, 2010.
4 Total revenues consist of stormwater utility fees and interest.
5 Required coverage is 1.35.
131
Table 14 - Unaudited
Stormwater Utility Revenue Bonds, Series 2003
Debt Service
Gross
Revenues 4
Principal
Interest
Total
$ 908,576
$ 235,000
$ 201,973
$ 436,973
932,183
240,000
197,273
437,273
856,568
245,000
191,873
436,873
814,419
255,000
185,135
440,135
858,664
260,000
177,485
437,485
816,415
270,000
169,035
439,035
810,382
280,000
159,248
439,248
1,007,221
290,000
148,048
438,048
Coverage 5
132
2.08
2.13
1.96
1.85
1.96
1.86
1.84
2.30
CITY OF SEBASTIAN, FLORIDA
Demographic and Economic Statistics
State
For the Last Ten Calendar
Years
Unemployment
Enrollment z
Rate'
Rate
Personal
Per
3.6
5,117
7.0
Income
Capita
Median
7.1
3,751
(thousands
Personal
Household
Year
Population
of dollars)'
Income'
Income'
2006
21,666
$ 7,320,877 $
56,383
$ 45,034
2007
22,426
7,552,059
56,852
47,563
2008
22,924
7,976,086
58,528
48,267 5
2009
22,722
6,534,146
47,689
43,685 5
2010
22,922
6,737,286
48,276
47,525
2011
21,929
7,080,348
50,977
42,053
2012
21,995
7,429,653
52,855
42,638
2013
22,188
7,731,263
54,448
44,326
2014
22,296
9,139,902
63,140
47,548
2015
22,622
4
4
4
A
Sources:
Florida Research Et Economic Database (FRED). Information available for Indian River County Only.
Z Indian River County School Board
3 Indian River County Property Appraiser
4 Information not yet available.
5 The school population appears to have declined as a result of loss of job opportunities. Our community lost many
construction jobs as a result of the declining economy.
Note: School enrollment consists of Sebastian River High School, Sebastian River Middle School, Liberty Magnet,
Treasure Coast Elementary, Pelican Island Elementary, Sebastian Elementary, Storm Grove Middle School and
Sebastian Charter Junior High School.
133
State
School
Unemployment
Unemployment
Enrollment z
Rate'
Rate
5,604
4.9
3.6
5,117
7.0
4.4
4,710
9.8
7.1
3,751
14.5
11.2
5,167
14.5
11.3
5,228
13.4
10.6
5,208
11.8
8.6
6,739
8.8
6.9
6,034
6.5
5.6
5,930
6.1
4.8
Sources:
Florida Research Et Economic Database (FRED). Information available for Indian River County Only.
Z Indian River County School Board
3 Indian River County Property Appraiser
4 Information not yet available.
5 The school population appears to have declined as a result of loss of job opportunities. Our community lost many
construction jobs as a result of the declining economy.
Note: School enrollment consists of Sebastian River High School, Sebastian River Middle School, Liberty Magnet,
Treasure Coast Elementary, Pelican Island Elementary, Sebastian Elementary, Storm Grove Middle School and
Sebastian Charter Junior High School.
133
Table 15 - Unaudited
Property
Total
Taxes
Taxable
Per
Property
Capita
Value 3
214.39
1,307,284,666
226.96
1,858,210,615
224.61
1,785,005,482
211.33
1,319,602,616
181.67
1,149,141,140
157.50
986,748,734
139.28
877,458,060
145.18
820,699,121
145.68
885,009,868
158.88
966,812,200
134
CITY OF SEBASTIAN, FLORIDA
Principal Employers
Current Year and Nine Years Ago
Employer
School District of Indian River County (Government)
Indian River Medical Center (Healthcare)
Indian River County (Government)
Publix Supermarkets (Food/Beverage)
Piper Aircraft, Inc. (Manufacturer)
Wal-Mart (Retail)
Sebastian River Medical Center (Healthcare)
John's Island (Residential/ Resort)
City of Vero Beach (Government)
Medical Data Systems (Collection Agency)
Visiting Nurse Association (Healthcare)
Indian River Estates (Retirement/ Life care)
Disney Vero Beach (Resort Hotel)
Grand Harbor Management (Developer)
CVS Warehouse/ Distribution (Distribution)
Sun Ag, Inc. (Agricultural)
City of Sebastian (Government)
Flight Safety International (Education)
Saint Edward's School (Education)
Gracewood Fruit Packing (Agricultural)
Hale Indian River Groves (Agricultural)
Table 16 - Unaudited
2015 2006
12,173 20.06 % 12,355 21.81 %
Total Average County Employees 60,674 56,664
Source: Indian River County Community Development Report.
Note: Principal employers information available for Indian River County Only.
135
Percentage of
Percentage of
Total County
Total County
Employees
Rank
Employment
Employees
Rank
Employment
2,123
1
3.50 %
2,106
1
3.72 %
1,753
2
2.89
1,549
2
2.73
1,328
3
2.19
1,528
3
2.70
1,250
4
2.06
950
5
1.68
850
5
1.40
974
4
1.72
693
6
1.14
500
9
0.88
569
7
0.94
525
8
0.93
526
8
0.87
475
10
0.84
424
9
0.70
600
7
1.06
400
10
0.66
-
-
-
399
11
0.66
300
13
0.53
350
12
0.58
400
11
0.71
300
13
0.49
400
11
0.71
281
14
0.46
300
13
0.53
260
15
0.43
-
-
-
210
16
0.35
120
17
0.21
179
17
0.30
212
15
0.37
163
18
0.27
199
16
0.35
115
19
0.19
237
14
0.42
330
12
0.58
650
6
1.15
12,173 20.06 % 12,355 21.81 %
Total Average County Employees 60,674 56,664
Source: Indian River County Community Development Report.
Note: Principal employers information available for Indian River County Only.
135
CITY OF SEBASTIAN, FLORIDA
Full -Time Equivalent City Government Employees By Function
For the Last Ten Fiscal Years
Full-time Equivalent Employees as of September 30
Function ■ ® , 2014 2013 2012 2011 2010
General government
City council
2.5
2.5
2.5
2.5
2.5
2.5
City manager
2.0
2.0
2.0
2.0
2.0
2.5
City clerk
5.0
5.0
3.0
3.0
3.0
3.0
City attorney
-
-
-
-
-
-
Administrative
5.5
5.5
5.0
5.0
5.0
5.0
Finance
-
-
-
-
-
-
Management information
2.0
2.0
3.0
3.0
4.0
3.0
Human resources
-
-
-
-
-
-
Facilities maintenance
5.0
5.0
4.0
3.0
2.0
2.0
Community development
4.0
4.0
3.0
3.0
4.0
5.0
Public safety
Police
57.0
57.0
55.5
55.0
58.0
58.0
Building
5.0
5.0
5.0
4.0
5.0
5.0
Code enforcement
3.0
3.0
3.0
3.0
3.0
2.5
Transportation
Roads and drainage
10.0
10.0
10.0
10.0
12.0
12.0
Fleet management
3.5
3.5
3.5
3.5
2.5
3.5
Airport
1.0
1.0
2.0
3.0
3.0
3.0
Physical environment
Cemetery
2.0
2.0
2.0
1.0
1.0
2.0
Engineering
-
-
-
-
-
-
Stormwater utility
9.0
9.0
9.0
9.0
12.0
12.0
Culture and recreation
Parks and recreation
20.0
20.0
20.0
20.0
21.0
23.0
Golf course
10.0
10.0
10.0
10.0
10.5
10.5
Total
146.5
146.5
142.5
140.0
150.5
154.5
Source: City of Sebastian, Florida 2006-2015 Annual Budgets
Method: Using 1.0 for each full-time employee and 0.5 for each part-time and seasonal employee.
136
Table 17 - Unaudited
Full-time Equivalent Employees as of September 30
' 2009 2008 2007 2006
2.5
2.5
2.5
2.5
2.5
2.5
2.0
2.0
3.0
3.0
4.0
4.5
2.0
2.0
2.0
2.0
5.0
5.0
5.0
6.0
3.0
3.0
3.0
3.0
2.0
3.0
3.0
3.0
2.0
2.0
2.0
2.0
5.0
5.0
5.0
4.0
59.0
58.0
57.0
58.0
5.0
6.0
11.0
11.0
2.5
2.5
3.0
3.0
10.0
10.0
11.5
12.5
3.5
2.5
3.5
3.5
3.0
3.0
3.0
3.5
2.0
2.0
2.0
2.0
7.0
7.0
9.0
8.0
11.0
13.0
13.0
13.0
23.5 23.5 23.5 24.5
9.0 9.0 12.5 12.5
162.5 164.5 177.5 180.5
137
CITY OF SEBASTIAN, FLORIDA
Operating Indicators By Function/Program
For the Last Ten Fiscal Years
Fiscal Year
Function 2015 2014 2013 2012
General government
Number of annexations approved 2
Acres of annexed property - - 4.00
Purchase orders issued 254 242 233 201
Public Safety
Police
Physical arrests
287
347
440
441
Traffic violations
3,725
4,587
4,491
4,319
Parking violations
60
29
80
167
Building
Construction permits issued'
142
175
170
66
Estimated value of construction (in millions)
$ 40.6 $
40.0 $
35.9 $
14.7 $
Transportation
Road maintenance (man hours)
200
200
300
500
Asphalt for road maintenance (tons)
10
20
30
50
Concrete for road maintenance (yards) 1
-
-
-
-
Physical environment
Cemetery
Cemetery internments
71
67
65
65
Grave deeds sold
43
47
38
38
Stormwater
Swales maintained (miles)
300
280
280
280
Ditches maintained (miles)
75
50
50
50
Road crossings maintained
68
68
50
50
Culture and recreation
Program participants
7,647
7,571
8,113
9,713
Number of discount cards
653
653
710
786
Number of golf course memberships
93
84
86
88
Average daily golf revenue
$ 3,653 $
3,500 $
3,569 $
3,822 $
Sources: City of Sebastian Police Department, Growth Management, Public Works,
Golf Course and Building Department.
New commercial and residential only.
Z All road maintenance utilized asphalt, no concrete curbing was installed.
138
2011
228
500
5,941
242
51
10.2
700
50
54
34
280
50
40
8,649
735
94
3,787
EI
Table 18 - Unaudited
Fiscal Year
2010 2009 2008 2007 2006
1
3
1
1
5.90
26.00
-
3.87
3.30
216
288
254
284
293
487
543
662
697
744
4,083
4,849
4,418
7,221
6,291
87
50
208
289
880
36
23
55
104
506
6.6 $
5.1 $
13.3 $
22.5 $
88.3
1,264
600
538
888
512
103
328
358
210
127
-
-
-
-
300
66
74
68
69
76
33
39
46
49
56
280
280
280
280
280
50
50
50
50
50
40
30
30
30
30
11,701
13,465
12,910
14,177
8,004
844
879
950
1,004
2,690
96
95
97
108
119
3,673 $
4,000 $
3,988 $
4,661 $
4,441
139
CITY OF SEBASTIAN, FLORIDA
Capital Asset Statistics By Function/Program
For the Last Ten Fiscal Years
Sources: City of Sebastian Administrative Services Department and Park and Recreation Division
' This number represents actual unmetered street lights in the City (source: Florida Power It Light - January billing).
140
Fiscal Year
Function
2015
2014
2013
2012
2011
General Government
Square footage occupied
21,500
21,500
21,500
21,500
21,500
Departmental vehicles
5
5
6
1
3
Public safety
Police stations
1
1
1
1
1
Police department Square footage
25,600
25,600
25,600
25,600
25,600
Building department Square footage
2,500
2,500
2,500
2,500
2,500
Police vehicles
66
62
61
66
67
Building inspector vehicles
4
3
3
3
3
Transportation
Streets (miles)
156
156
156
156
156
Streetlights '
1,085
1,085
1,080
1,228
1,236
Airport
3
1
1
1
1
Public service vehicles
12
15
17
17
19
Physical environment
Public service vehicles
17
10
10
9
9
Culture and recreation
Parks
18
18
18
18
18
Recreation centers
2
2
2
2
2
Park acreage
315.01
315.01
315.01
315.01
315.01
Recreation center square footage
4,859
4,859
4,859
4,859
4,859
Park maintenance vehicles
12
9
12
13
14
Golf course
-
1
1
1
1
Sources: City of Sebastian Administrative Services Department and Park and Recreation Division
' This number represents actual unmetered street lights in the City (source: Florida Power It Light - January billing).
140
Table 19 - Unaudited
Fiscal Year
2010 2009 2008 2007 2006
21,500 21,500 21,500 21,500 21,500
3 3 3 3 3
25,600
25,600
25,600
25,600
25,600
2,500
2,500
2,500
2,500
2,500
63
63
62
57
53
3
4
4
5
6
156
156
156
156
156
1,230
1,240
1,229
1,309
3,808
1
1
1
1
1
22
18
23
21
19
15
7
11
10
12
18
18
15
14
14
2
2
2
2
2
315.01
233.79
233.79
229.37
229.37
4,859
4,859
4,859
4,859
4,859
13
13
13
12
11
1
1
1
1
1
141