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CITY OF
- SEBASTIAN, FLORIDA
HOME OF PELICAN ISLAND
Comprehensive Annual Financial Report
For the Year Ended September 30, 2003
CITY COUNCIL
WalterW. Barnes ............................... Mayor
RayConiglio........................................ Vice -Mayor
JoeBarczyk......................................... Councilmember
James A. Hill ....................................... Councilmember
NathanMcCollum .............................. Councilmember
Prepared By: Shai Francis, CPA, CGFO
Director of Finance
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INTRODUCTORY SECTION
This section contains the following subsections:
➢ Table of Contents
➢ Letter of Transmittal
➢ Certificate of Achievement for Excellence in Financial
Reporting for the Fiscal Year Ended September 30,
2002
➢ Organizational Chart
➢ List of Officials
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CITY OF SEBASTIAN, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
SEPTEMBER 30, 2003
TABLE OF CONTENTS
INTRODUCTORY SECTION
Page
TitlePage ..................... ..........................................................................................
i
Tableof Contents...........................................................................................................................................
iv
Letterof Transmittal......................................................................................................................................
vii
Certificate of Achievement for Excellence in Financial Reporting...............................................................
xi
OrganizationalChart ......................................................................................................................................
xii
List of Officials .....................
iii
FINANCIAL SECTION
Independent Auditor's Report .......................................................................................................................
3
Management's Discussion and Analysis.......................................................................................................
5
Basic Financial Statements
Government -wide Financial Statements:
Statementof Net Assets..........................................................................................................................
13
Statementof Activities...........................................................................................................................
14
Fund Financial Statements:
Balance Sheet— Governmental Funds....................................................................................................
15
Statement of Revenues, Expenditures, and Changes in Fund Balances —
GovemmentalFunds...........................................................................................................................
16
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances
of Governmental Funds to the Statement of Activities.......................................................................
17
Statement of Net Assets — Proprietary Funds.........................................................................................
18
Statement of Revenues, Expenses, and Changes in Fund Net Assets — Proprietary Funds ....................
19
Statementof Cash Flows — Proprietary Funds.......................................................................................
20
Statement of Fiduciary Net Assets — Fiduciary Funds............................................................................
22
Statement of Changes in Fiduciary Net Assets — Fiduciary Fund..........................................................
23
Notes to Financial Statements...................................................................................................................
24
Required Supplementary Information:
Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and
Actual— General Fund............................................................................................................................
40
Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and
Actual — Discretionary Sales Tax Special Revenue Fund.......................................................................
41
Notes to the Required Supplementary Information — Budget Comparisons ..............................................
42
Police Officers' Pension Plan — Schedule of Contributions from the Employer and other
ContributingEntities...............................................................................................................................
43
Combining and Individual Fund Statements and Schedules
Combining Balance Sheet — Nonmajor Governmental Funds.......................................................................
46
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances — Nonmajor
GovernmentalFunds..................................................................................................................................
50
Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and
Actual — Local Option Gas Tax Special Revenue Fund............................................................................. 53
Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and
Actual — Riverfront Redevelopment Special Revenue Fund...................................................................... 54
Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and
Actual — Recreation Impact Fee Special Revenue Fund............................................................................ 55
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Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and
Actual — Stormwater Utility Special Revenue Fund...............................................................
w. Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and
Actual — Law Enforcement Forfeiture Special Revenue Fund ................................................
Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and
.. Actual — G.R.E.A.T. Program Special Revenue Fund............................................................
Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and
- Actual — Special Assessment Revenue Bonds 1996 Debt Service Fund .................................
.� Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and
Actual — Discretionary Sales Surtax Revenue Bonds 2003 Debt Service Fund ......................
d ' b'1' ' A F d
Pape
........... 55
........... 56
Statement of Changes in Assets an Lta t , es — gency un.....................................................................
58
59
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Capital Assets Used in the Operation of Governmental Activities — Comparative
Scheduleby Source....................................................................................................................................
60
Capital Assets Used in the Operations of Governmental Activities — Schedule
byFunction and Activity ...........................................................................................................................
61
Capital Assets Used in the Operations of Governmental Activities — Schedule of Changes
byFunction and Activity ....................................................................................................................•.......
62
STATISTICAL SECTION (Unaudited)
Table
General Governmental Expenditures by Function—
LastTen Fiscal Years...........................................................................................................
1
64
General Governmental Revenues by Source — Last Ten
FiscalYears..........................................................................................................................
2
66
Property Tax Levies and Collections — Last Ten Fiscal Years .............................
Assessed and Estimated Actual Value of Property — Last Ten Fiscal Years ...........................
4
70
PrincipalTaxpayers.................................................................................................................
5
72
Property Tax Rates — Direct and Overlapping Governments — Last Ten Fiscal Years............
6
73
Special Assessments Billing and Collections — Last Ten Fiscal Years ....................................
7
74
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Computation of Legal Debt Margin.........................................................................................
8
75
Ratio of Net General Obligation Bonded Debt to Assessed Value and Net
General Obligation Bonded Debt Per Capita.......................................................................
9
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Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt
To Total General Government Expenditures.......................................................................
10
76
Computation of Direct and Overlapping Bonded Debt — General Obligation Bonds ..............
11
77
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Revenue Bond Coverage — Golf Course Bond — Last Ten Fiscal Years ..................................
12
78
Demographic Statistics — Last Ten Fiscal Years.....................................................................
13
79
Property Value, Construction and Bank Deposits — Last Ten Fiscal Years .............................
14
80
Miscellaneous Statistics...........................................................................................................
15
82
SINGLE AUDIT SECTION
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Independent Auditor's Report on Compliance and on Internal Control Over Financial
Reporting Based on an Audit of Financial Statements Performed in Accordance with
Governmental Auditing Standards.............................................................................................................
85
Independent Auditor's Report on Compliance and Internal Control over Compliance
Applicable to Each Major Federal Program and State Project..................................................................
87
Schedule of Findings and Questioned Costs — Federal Programs and State Projects ....................................
89
Summary Schedule of Prior Audit Findings — State Projects........................................................................
91
Schedule of Expenditures of Federal Awards and State Financial Assistance ..............................................
92
Independent Auditor's Management Letter...................................................................................................
93
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CITY OF
_ SIEBASTIAN
;4Qn; ;
HOME OF PELICAN ISLAND
1225 MAIN STREET • SEBASTIAN, FLORIDA 3295E
TELEPHONE: (772) 589-5330 • FAX (772) 589-5570
February 17, 2004
Honorable Mayor and City Council
City of Sebastian, Florida
Dear Council Members:
We are submitting the Comprehensive Annual Financial Report of the City of Sebastian, Florida for the fiscal year
ended September 30, 2003, as prepared by the City's Finance department. Responsibility for both the accuracy of
the data presented and the completeness and fairness of the presentation, including all disclosures, rests with the
Management of the City.
The Comprehensive Annual Financial Report is presented in four sections:
1. Introductory section, including a table of contents, this letter of transmittal, the organizational chart,
.. and list of officials.
2. Financial section, including the Management Discussion and Analysis, basic financial statements
accompanied by our independent auditor's report, notes to financial statements, required
supplementary information, and the combining and individual fund financial statements and
schedules.
�. 3. Statistical section, including selected financial and demographic information, generally presented for
the past 10 years.
4. Single audit section, including our independent auditor's reports and Schedule of Expenditures of
Federal Awards and State Financial Assistance.
The report also complies in all material respects with the authoritative promulgations by the Governmental
,., Accounting Standards Board (GASB). An explanation of the City's accounting policies is contained in the Notes
to Financial Statements, which are an integral part of this Report. These Notes explain the basis of accounting,
funds and accounts used, and other significant accounting information.
U.S. generally accepted accounting principles require that management provide a narrative introduction, overview,
and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with
it. The City of Sebastian's MD&A can be found on page 5 following the report of the independent auditors.
INDEPENDENT AUDIT
_ 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. This audit has been completed by the City's independent
Certified Public Accountants, Hoyman, Dobson & Company, P.A. Their opinion is included in this Report.
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REPORTING ENTITY
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The City of Sebastian is located on the central east coast of Florida, "the Treasure Coast", in Indian River County.
The City is a Florida municipal corporation with a five -member City Council comprised of five council members
with a Mayor selected from the five members. The City operates under a Council -City Manager form of
government. The Director of Finance reports to the City Manager and they are responsible for the administration
of City finances. The City provides a wide range of services including general government administration, police
protection, public works, a golf course, and a general aviation airport.
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.
FACTORS AFFECTING FINANCIAL CONDITIONS
The information presented in the financial statements is perhaps best understood when it is considered from the
broader perspective of the specific environment within which the City of Sebastian operates.
Local Economv
The City of Sebastian currently enjoys a favorable economic environment and local indicators (building permits,
both commercial and residential) suggest continued stability. The region, though agricultural in nature, also
enjoys light industrial as well as a strong retail base which draws numerous visitors from around the area.
The region (which includes the City of Sebastian and the surrounding unincorporated area with the same county)
has a fluctuating labor force depending on agricultural demand and a strong retirement community. Although the
labor force fluctuates, unemployment in the region has been between 6.8% and 9.8% over the past several years.
Lone -term Financial Plannine
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.
Strong growth in the City continued and has provided the City funding for a high level of services to City
residents and visitors without increasing the property tax millage rate. Property tax revenues increased 9% and the
assessed value for real property has increased by 14%. Construction activity in fiscal year 2003 was strong with
545 permits being issued for new construction with a value of $93.6 million. This was an increase of 127% from
last year and sets a new record for annual construction value. One major annexation was approved in fiscal year
2003, which involves 72.5 acres of land located at the southwest side of the City. In addition, there are five
annexations currently underway. The annexations will have significant impact on the property tax base and
property tax revenues.
U.S. Highway 1 and County Road 512, which encompasses a substantial portion of the business district of the
City of Sebastian, underwent major renovations over the past year. In the heart of the Sebastian River Area, the
new Best Western Hotel is currently underway, which features 50 plus rooms. Along County Road 512, a
commerce center is underway which features nine separate buildings for private businesses.
FINANCIAL INFORMATION
Internal Accountina Controls
In developing and evaluating the City's accounting system, consideration is given to the adequacy of internal
accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurances
regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability
of financial records for preparing financial statements and maintaining accountability for assets. The concept of
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reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived,
and (2) the evaluation of costs and benefits requires estimates and judgements of management.
.. All internal control evaluations occur within this framework. We believe that the City's internal accounting
controls adequately safeguard assets and provide reasonable assurance of proper recording of financial
transactions.
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Budgetary Control
Budgetary control is maintained at the budget account level by the encumbrance of estimated purchase amounts
�+ prior to the release of purchase orders to vendors. Open encumbrances are reported as reservations of fund
balances as of September 30, 2003. Appropriations are approved on an annual basis and are subject to regular
review by City Management and a quarterly review by the City Council. Monthly budget reports are submitted to
senior administrative officials and are available to the City Council.
Cash Management
In accordance with Section 218.415, Florida Statutes, the City adopted an investment policy, which guides the
investment of City surplus funds. This policy establishes investment objectives, maturity and liquidity
-- requirements, portfolio composition, risk and diversification requirements, and authorized investments. The
primary objectives of the investment activities are to preserve capital and maintain sufficient liquidity to meet
anticipated cash flow needs. The secondary objective is to obtain competitive returns on the investment of City's
surplus funds. Surplus funds were invested in U.S. agency obligations and the Florida Local Government Surplus
Funds Trust Fund. Funds were invested with local banks, which are considered Qualified Public Depositories as
r. described in the Florida Security for Public Deposits Act. In addition, the City maintains a zero balance
disbursement account system whereby excess funds are cleared from the checking account at the end of each
banking day and automatically invested in an overnight repurchase agreement. During fiscal year 2003, City
investments had yields ranging from 1.29% to 3.2%. The average yield of the portfolio as of September 30, 2003
was 1.9%.
Risk Management
All risk management activities are recorded in each particular fund, including general property liability insurance
premiums and related costs, and workers compensation. The City administers both policies under the direction of
the Finance and Human Resources departments, respectively. In addition, the City has a Safety Committee that
reviews all workers compensation accidents and provides recommendations for corrective action.
Retirement Commitments
Police Officers' Pension Plan — There were 31 active and retired members in the Police Officers' Pension Plan as
of September 30, 2003. This pension plan is a single employer, defined benefit plan and is administered by a
Board of Trustees. The actuarially determined funding requirements are based upon the market value of the
pension plan's investment portfolios. The City's policy of funding to meet the actuarially determined
requirements was met for 2003. Contributions to the pension plan totaled $311,767, which includes $153,111
from the City, $65,942 from employees, and $92,714 from the State of Florida.
�. REPORTING ACHIEVEMENT
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, 2002. The Certificate of Achievement is a prestigious national
award recognizing conformance with the highest standards for preparation of state and local government financial
reports. hi order to be awarded a Certificate of Achievement, a government must publish an easily readable and
w 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.
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ACKNOWLEDGEMENTS
The preparation of this report would not be possible without the dedicated service of the Finance 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,
Shai L. Francis, CPA, CGFO
Director of Finapce
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Terrence R. re
City Manager
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_ 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, 2002
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
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DISPATCH
CITY OF SEBASTIAN
ORGANIZATIONAL CHART
I CITIZENS OF
II SEBASTIAN
CITY COUNCIL BOARDS' _
COMMISSIONS
CITY CITY
MANAGER ATTORNEY
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FINANCE PUBLIC WORKS
MANAGEMENT
INFORMATION ROADS & DRAINAGE
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MAINTENANCE
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GENERAL SERVICES
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CENTRAL GARAGE
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CITY OF SEBASTIAN, FLORIDA
CITY OFFICIALS
City Manager
City Clerk
City Attorney
DEPARTMENT HEADS:
Director of Finance
City Engineer
Police Chief
Public Works Director
Growth Management Director
Building Director
Human Resources Director
Golf Course Manager
Airport Manager
TERRENCE R. MOORE
SALLY A. MAIO, CMC
RICH STRINGER
SHAI L. FRANCIS, CPA, CGFO
DAVID FISHER, P.E.
JAMES DAVIS
TERRY HILL
TRACY HASS
GEORGE BONACCI
JAMES SEXTON
GREG GARDNER
JASON MILEWSKI
CITY OF
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FINANCIAL SECTION
This section contains the following subsections:
➢ Independent Auditor's Report
➢ Management's Discussion and Analysis
➢ Government -wide Financial Statements
➢ Fund Financial Statements
➢ Notes to Financial Statements
➢ Required Supplementary Information
➢ Combined and Individual Fund Statements
and Schedules
C11Y OF
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�i� HOYMAN, DOBSON & COMPANY, P.A.
� CERTIFIED PUBLIC ACCOUNTANTS
215 Boytree Drive, Melbourne, Florida 32940, 321-255-0088, Fox 321-259-8648, www.hoymon.com
Charles W Hayman, Jr,
Barbara J. Oswalt
Thomas l Kirk
Karen E Kirkland
Deborah A, Bradley
DIRECTOR EMERITUS
Roger W Dobson
Eugene K. Blermng
Independent Auditor's Report
Honorable Mayor and Members of City Council
City of Sebastian
Sebastian, Florida
., 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,
as of and for the year ended September 30, 2003, which collectively comprise the City's basic financial
statements as listed in the table of contents. These financial statements are the responsibility of the City of
Sebastian, Florida's, management. Our responsibility is to express 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 Auditine Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the basic financial statements referred to above 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, 2003,
and the respective changes in financial position and cash flows, where applicable, thereof for the year then
ended in conformity with accounting principles generally accepted in the United States of America.
r.
In accordance with Government Auditine Standards. we have also issued our report dated January 9, 2004,
on our consideration of the City of Sebastian, Florida's internal control over financial reporting and our tests
of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an
integral part of an audit performed in accordance with Government Auditine Standards and should be read
in conjunction with this report in considering the results of our audit.
The management's discussion and analysis on pages 5-12 and the required supplementary information on
pages 40-61 are not a required part of the basic financial statements but are supplementary information
required by accounting principles generally accepted in the United States of America. We have applied
certain limited procedures, which consisted principally of inquiries of management regarding the methods of
measurement and presentation of the supplementary information. However, we did not audit the
information and express no opinion on it.
OR -
• American Institute of Certified Public Accountants • Florida Institute of Certified Public Accountants • SEC Practice Section of the A.I.0 P.A. • CPAmerica International
Honorable Mayor and Members of City Council
City of Sebastian
Page Two
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 introductory section, combining
and individual fund statements and schedules, and the statistical section are presented for purposes of
additional analysis and are not a required part of the basic financial statements. The combining and
individual fund statements and schedules have been subjected to the auditing procedures applied in the audit �+
of the basic financial statements and, in our opinion are fairly stated in all material respects in relation to the
basic financial statements taken as a whole. The introductory section and the statistical section have not
been subjected to the auditing procedures applied in the audit of the basic financial statements and,
accordingly, we express no opinion on them.
The accompanying schedule of expenditures of federal awards and state financial assistance is presented for
purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133,
Audits of States. Local Governments, and Non -Profit Oreanizations; and Chapter 10.550 Rules of the
Auditor General, and is also not a required part of the basic financial statements of the City of Sebastian,
Florida. Such information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic
financial statements taken as a whole.
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Hoyman, Dobson & Company, P.A.
January 9, 2004
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MANAGEMENT'S DISCUSSION AND ANALYSIS
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The City of Sebastian's (the "City") discussion and analysis is designed to (a) assist the reader in focusing on
OR 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.
00 Since the Management's Discussion and Analysis (MD&A) is designed to focus on the current years activities,
resulting changes and currently known facts, please read it in conjunction with the Transmittal Letter (beginning
on page vii) and the City's financial statements (beginning on page 13).
HIGHLIGHTS
Financial Highlights
.+ • The City's Net Assets increased by $3,218,516 primarily as a result of completing and capitalizing
$2,490,986 in capital improvement projects, and purchases of capital assets of $2,569,794.
• The total cost of all the City's programs was $12,239,285, an increase of $1,566,006 or 14.7%.
• • During the year, the City's governmental -type activities revenues increased $804,206 or 6.7% and
expenses increased $1,563,983 or 17.4%, over the previous year.
• The City's business -type activities revenue increased by $884,210 or 48% and expenses increased by
an $2,023 or 0.1%.
• The City completed $165,430 in land purchases, representing right-of-way purchases.
• The City completed $834,572 in the annual road reconstruction and repaving programs, as well as
reconstruction of the CR512 Alleyway.
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USING THIS ANNUAL REPORT
The annual report consists of a series of financial statements. The Statement of Net Assets and the Statement of
•� Activities (on pages 13 and 14) provide information about the activities of the City as a whole and present a
longer -term view of the City's finances. Fund financial statements begin on page 15. For governmental
activities, these statements tell how these services were financed in the short term as well as what remains for
•w future spending. Fund financial statements also report the City's operations in more detail by providing
information about the City's most significant funds. The remaining statements provide financial information
about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the
government.
Reporting the City as a Whole
.• Our analysis of the City as a whole begins on page 13. One of the most important questions asked about the
City's finances is, "Is the City as a whole better off or worse off as a result of the year's activities?" The
Statement of Net Assets and the Statement of Activities report information about the City as a whole and about its
so activities in a way that helps answer this question. These statements include all assets and liabilities using the
accrual basis of accounting, which is similar to the accounting used in most private -sector companies. All of the
current year's revenues and expenses are taken into account regardless of when cash is received or paid.
•
These two statements report the City's net assets and changes in them. You can think of the City's net assets —
the difference between assets and liabilities — as one way to measure the City's financial health, or financial
position. Over time, increases or decreases in the City's net assets, is one indicator of whether its financial
health is improving or deteriorating. You will need to consider other nonfinancial factors, however, such as
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changes in the City's property tax base and the condition of the City's roads, to assess the overall health of the
City.
In the Statement of Net Assets and the Statement of Activities, we divide the City into two kinds of activities:
• Governmental activities — Most of the City's basic services are reported here, including the police, public
works, parks and recreation, and general administration. Property taxes, franchise fees, and. state shared
revenue finance most of these activities.
Business -type activities — The City charges a fee to customers to help it cover all or most of the cost of
certain services it provides. The City's Golf Course and Airport are reported here.
so
Reporting the City's Most Significant Funds
Our analysis of the City's major funds begins on page 15. The fund financial statements provide detailed r
information about the most significant funds — not the City as a whole. Some funds are required to be established
by State law and by bond covenants. However, the City Council establishes many other funds to help it control
and manage money for particular purposes (like the road paving program) or to show that it is meeting legal
responsibilities for using certain taxes, grants, and other money (like the local option gas tax and infrastructure
sales surtax (a.k.a. Discretionary Sales Tax)). The City's two kinds of funds — governmental and proprietary —
use different accounting approaches.
Governmental funds — Most of the City's basic services are reported in governmental funds, which focus
on how money flows into and out of those funds and the balances left at year-end that are available for
spending. These funds are reported using an accounting method called modified accrual accounting, ..
which measures cash and all other financial assets that can readily be converted to cash. The
governmental fund statements provide a detailed short-term view of the City's general government
operations and the basic services it provides. Governmental fund information helps you determine
whether there are more or fewer financial resources that can be spent in the near future to finance the
City's programs. We describe the relationship (or differences) between governmental activities (reported
in the Statement of Net Assets and the Statement of Activities) and governmental funds in reconciliations
at the bottom of the fund financial statements.
Proprietary funds — When the City charges customers for the services it provides — whether to outside
customers or to other units of the City — these services are generally reported in proprietary funds.
Proprietary funds are reported in the same way that all activities are reported in the Statement of Net
Assets and the Statement of Activities. In fact, the City's enterprise funds (a component of proprietary
funds) are the same as the business -type activities we report in the government -wide statements but
provide more detail and additional information, such as cash flows, for proprietary funds.
The City as Trustee
The City is the trustee, or fiduciary, for the Police Officers' Pension Plan. The City's fiduciary activities are
reported in separate Statements of Fiduciary Net Assets and Changes in Fiduciary Net Assets on page 22 and 23.
We exclude these activities from the City's other financial statements because the City cannot use these assets to
finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for
their intended purposes. r,
The City holds deposits for various individuals and businesses for contract performance that are then returned
when the contract has been completed. These deposits are accounted for in an Agency fund, where assets equal
OR
liabilities.
•
6 rIR
THE CITY AS A WHOLE
Financial Analysis of the City as a Whole
., The City's combined net assets increased $3.2 million from $25.3 million to $28.5 million or 12.7%. Looking at
the net assets and net revenues of the governmental and business -type activities, the increase occurred in both the
governmental -type activities and the business -type activities. Our analysis focuses on net assets (Table 1) and
changes in net assets (Table 2) of the City's governmental and business -type activities.
GOVERNMENT -WIDE STATEMENTS
Statement of Net Assets
The following table reflects the condensed Statements of Net Assets:
Table 1
Statements of Net Assets
as of September 30, 2003 and 2002
(in thousands)
•
Governmental Activities Business -type Activities Total Primary Government
2003 2002 2003 2002 2003 2002
Current and other assets $ 19,393 $ 10,157 S 2,254 $ 1,827 S 21,647 $ 11,984
Capital assets 20,243 17,743 3,608 2,527 23,851 20,270
Total assets S 39,636 S 27,900 S 5,862 S 4,354 S 45,498 S 32,254
Non -current liabilities S 12,505 S 4,043 S 1,832 S 2,278 $ 14,337 s 6,321
Other liabilities 2,096 459 507 134 2,603 593
Total liabilities S 14,601 S 4,502 $ 2,339 $ 2,412 S 16,940 S 6,914
_ Net assets:
Invested in capital assets,
net of related debt S 16,339 $ 14,243 S 1,546 $ 364 S 17,885 S 14,607
Restricted 3,236 3,290 505 458 3,741 3,748
Unrestricted 5,461 5,865 1,472 1,120 6,933 6,985
Total net assets $ 25,036 S 23,398 S 3,523 $ 1,942 $ 28,559 S 25,340
For more detail information see the Statement of Net Assets on page 13.
Total net assets of the governmental activities increased from $23.398 million to $25.036 million. Total net assets
for business -type activities increased from $1.942 million to $3.523 million.
.� The increase in governmental activities current and other assets and long-term and current liabilities is primarily
due to the issuance of the Series 2003 Infrastructure Sales Surtax Revenue bonds. ($9.5 million). The bond
proceeds will be used to construct a new city hall complex, renovation and expansion of the police station,
renovation of old city hall, and construction of a city hall park. Governmental activities capital assets increased
due to ongoing road paving, public facilities, transportation, and stormwater and drainage projects.
The increase in net assets of the City's business -type activities is primarily due to capital grants from the Federal
Aviation Administration and the Florida Department of Transportation for the City's municipal airport. Net assets
- invested in capital assets, increased due to capitalization of the City's ongoing airport projects.
7
00
so
The following chart shows the revenue and expenses of the total primary government.
Table 2
Changes in Net Assets
For the Fiscal Years Ended September 30, 2003 and 2002
(in thousands) r
Governmental
Business -type
Total Primary
Activities
Activities
Government
�+
2003
2002
2003 2002
2003
2002
REVENUES
Program revenues:
Charges for services
$ 1,919
S 1,682
$ 1,546 $
1,545
$ 3,465
S 3,227
Operating grants and contributions
921
958
-
51
921
1,009
Capital grants and contributions
2,566
2,734
1,149
214
3,715
2,948
r
General revenues:
Property taxes
2,944
2,616
-
-
2,944
2,616
Othertaxes
1,781
1,750
-
-
1,781
1,750
Intergovernmental
2,280
2,069
-
-
2,280
2,069
r
Other
321
119
31
32
352
151
Total revenues
12,732
11,928
2,726
1,842
15,458
13,770
r
EXPENSES
General government
1,621
2,010
-
-
1,621
2,010
Public safety
3,392
2,946
-
-
3,392
2,946
Physical environment
1,920
2,255
-
-
1,920
2,255
..
Transportation
2,401
616
-
-
2,401
616
Economic environment
166
223
-
-
166
223
Culture and recreation
748
777
-
-
748
777
r
Golf Course
-
-
1,363
1,394
1,363
1,394
Airport
-
-
316
284
316
284
Interest and fiscal charges
312
169 _
-
- _
312
169
Total expenses
10,560
8,996
1,679
1,678
12,239
10,674
r
Change in net assets before transfers
2,172
2,932
1,047
164
3,219
3,096
Transfers
(534)
534
-
-
-
Increase innet assets
1,638
2,932
1,581
164
3,219
3,096
r
Net assets - October 1, 2002
23,398
20,466
1,942
1,778
25,340
22,244
Net assets - September 30, 2003
S 25,036
S 23,398
S 3,523 S
1,942
$ 29,559
S 25,340
r
Overall the total revenues increased $1.688 million from the previous year. The total cost of all programs
increased by 14.7% ($1.565 million). Our analysis below separately considers the operations of governmental r
and business -type activities.
Governmental Activities
.R
Governmental activities revenues exceed expenses by $2.172 million. Total revenues increased approximately
$804,000 from the previous year. Increases in property values generated an increase in property taxes. The strong
local economy plus population growth of the City contributed to increases in charges for services, sales taxes and
ON
state shared revenues. Total expenses increased $1.565 million from the previous year. Increased spending for
public safety (law enforcement) and transportation is primarily responsible for the increase in expenses.
MM
8
Oft
The following is a graphic illustration of the comparison for governmental activities revenue and expenses.
4.
- Governmental Activities for 2003 and 2002
AND 4,000
3,500 _— --—---_—___ _-
3,000
00 a 2,500
e 2,000 -
rim
500
1,000
4q 500
gees oS ea0xs laves x06 e04a 0e00e `0¢Ol aSely oe0\ \OO e0� 00 V�
ox se is$ sa\g edY vre< eeaA eee eeea yes leoa o<<a %Ioa p<ea\v iv�ae
4s• csl esa oP OI O oa x\�e \:,o Qae eaa aasQ eaa a6 1;
G�ax6 OC G C \a\es6 OGeaesa C"vixca\ q�eoaasa Ga\va\e `�voa\oa
OWN Revenue/Expense types
❑2003 ■2002
NOD
Business -type Activities
.. Revenues of the City's business -type activities (see Table 2) increased by 48% ($2.726 million in fiscal year 2003
compared to $1.842 million in fiscal year 2002) and expenses rose only 0.1%. The City's Municipal Airport
enjoys a continued interest by the Florida Department of Transportation -Aviation Section to upgrade the airport
ANN facilities as evidenced by repeated support via grant funding. Capital contributions increased by 436%, which
- constitutes a majority part of the program revenue increases.
M
am
so
00
M
A
M
4MO
Following is a graphic comparison of the City's business -type activities.
Business -Type Activities Comparison
1,800
1,600
1,400
200
1,000
< 800
600
400
yei` f+ �aaays ,��`vs c e+Qe eaao Ne'' "ee
P, Gt`�$esipes OQ°egS$ CaQy�a\ Osesa Cn�see+Q°' s`
Oo\, <
sevenue/Expense types
O 20W ■2002
9
so
THE CITY'S FUNDS
As the City completed the fiscal year, its governmental funds (as presented in the balance sheet on page 15)
reported a combined fund balance of $17.7 million, which is an increase of $8.1 million over the prior year of
$9.6 million. The primary reason for the overall increase is the issuance of $9.5 million Infrastructure Sales
Surtax Revenue Bonds, series 2003.
General Fund Budgetary Highlights
Over the course of the fiscal year, the City Council revised the City budget three times. These budget
amendments fall into two categories. The first category includes amendments and supplemental appropriations ■„
that were approved shortly after the beginning of the year and reflect the actual beginning balances (versus the
amounts originally estimated in July 2002). The second category includes the changes that the Council made
during the year to take into account the City's staff restructuring efforts. During the fiscal year, the City amended r
the general fund budget in the amount of $199,211 for taxe revenues, licenses and permit fees, and
intergovernmental revenues. The increase is largely due to the local economy strength. With these adjustments,
the actual charges to appropriations (expenditures) were $388,954 below the final budgeted amount. ..
The City's General fund balance of $3,881,850 reported on page 15 differs from the General fund's budgetary
balance of $2,970,631 reported in the budgetary comparison schedule on page 40. This is principally due to the
fact that the budgetary fund balance excludes $194,398 of encumbrances reported as expenditures for budgetary
purposes, as well as $716,821 of excess revenues over expenses exceeding the amended budget.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At the end of fiscal year 2003 the City had $36,680,811 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 $4,679,382, or 15%, over last year.
The following table illustrates the changes in capital assets. See page 32 in the notes to the financial statements
for detailed changes in capital assets.
Table 3
Governmental
Business -type
Activities
Activities
Totals
2003
2002
2003
2002
2003
2002
Land $
4,653,603 $
4,488,173
S 9,060 S
9,060
S 4,662,663 S
4,497,233
Buildings
2,591,420
2,556,708
397,759
333,189
2,989,179
2,889,897
Improvements
2,310,380
2,049,225
797,517
574,109
3,107,897
2,623,334
Equipment
5,049,563
4,570,141
499,522
486,016
5,549,085
5,056,157
Infrastructure
15,021,381
13,951,040
2,374,021
2,371,821
17,395,402
16,322,861
Construction -in
Progress
1,634,161
264,456
1,342,424
347,490
2,976,585
611,946
Totals S
31,260,508 $
27,879,743
$ 5,420,303 S
4,121,685
S 36,680,811 S
32,001,428
Governmental activities had the following major increases during the fiscal year:
• An increase in land is a result of the purchase of right-of-ways.
• An increase in construction in progress mainly due to the new City Hall Complex project and Police
Department expansion.
• An increase in improvements resulting from the acquisition of a fuel storage facility, fiber optic cable, and
cemetery columbarium.
0•
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w
014
10 on
04
• An increase in infrastructure mainly due to the reconstruction of CR512 Alley Way, the construction of
the Barber Street Sport Complex Satellite Parking, and road paving and reconstruction.
Business -type activities had the following major increases during the fiscal year:
.. • An increase in construction in progress primarily due to the clearing of Runway 9-27 Safety Area and the
installation of security fencing at the Municipal Airport.
., Debt
- At September 30, 2003, the City had $14,718,499 in bonds, notes and capital leases outstanding versus
$5,791,998 at September 30, 2002 — an increase of 154%— as shown in the following table:
Table 4
Governmental Business -type
Activities Activities Totals
2003 2002 2003 2002 2003 2002
so Special assessment debt with
governmental commitment $ 77,615 S 134,299 $ - S - $ 77,615 $ 134,299
Infrastructure sales surtax revenue
OR bonds, Series 2003 9,500,000 - - 9,500,000
Notes payable (backed by local
option gas tax) 2,406,028 2,593,939 - - 2,406,028 2,593,939
•% Capital lease obligation (backed
by City) 672,528 788,957 - 672,528 788,957
Revenue bond (backed by golf
ON course revenue) - - 2,062,328 2,274,803 2,062,328 2,274,803
Totals $ 12,656,171 $ 3,517,195 S 2,062,328 $ 2,274,803 $ 14,718,499 $ 5,791,998
so
The increase in debt is solely attributable to the issuance of Infrastructure Sales Surtax Revenue Bonds, Series
2003. The $9,500,000 debt is to finance the construction of the new city hall complex, police department
expansion, old city hall renovation and construction of a city hall park. Since the Infrastructure Sales Surtax
Revenue Bonds, Series 2003 is insured by AAA rated insurance agencies, the bonds are rated AAA, which is the
highest rating given by rating agencies.
The City's revenue refunding bond carries an AAA rating from Standard & Poor's, a rating it has held since 1992.
All of the City's other debt, primarily notes and a capital lease, are not rated. Other obligations of the City include
accrued vacation pay and sick leave.
r.
Additional information on the City's long-term debt can be found on pages 34 through 36 in the notes to the
financial statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
•r The City's elected and appointed officials considered many factors when setting the fiscal year 2004 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
i industrial activities. Construction of new homes is the largest single business in the area. Some of the largest
retail stores include Wal-Mart Stores, Inc ® and Winn Dixie Stores, Inc ® The Indian River County unemployment
rate in 2003 was 8% down from 9.8% in the previous year and down from a high of 11% in 1994. This indicates
that business growth in the area has improved as evidenced by the construction of several new commercial
am
establishments in the area. Still, employment in the county fluctuates seasonally due to farm workers. Continued
stability and the increase of annual residential building permits issued provides a trend for steady economic
development in the area.
These indicators were taken into account when adopting the General Fund budget for fiscal year 20D4. Amounts
available for appropriation in the General Fund budget are $9,266,042, a decrease of 2% from the final fiscal year
2003 budget of $9,464,174. This is mainly due to significant health insurance and worker's compensation
premium increases, which were not available at the time the budget was adopted. However, property taxes
011
(benefiting from a 2003 increase in assessed valuations of 13.76%) and public services taxes are expected to
increase due to growth. The City will use these increases in revenues to finance programs we currently offer, as
well as, the effect that we expect inflation to have on program costs. Budgeted expenditures, not including
transfers out, are expected to decrease 0.18%,to $9,163,542 in fiscal year 2004, from $9,180,174 in fiscal year
2003. This is also due to the significant health insurance and worker's compensation premium increases. In
addition, the Communication Workers of America contract negotiations that were finalized at the end of
September, had a significant impact on personnel cost projections, but were not included in the FY 2003-2004 .�
General Fund adopted budget. If these estimates are realized, we expect the General Fund fiscal year 2004 result
will be moderate.
As for the City's business -type activities, we expect the fiscal year 2004 results will also be moderate based upon
current and future initiatives:
No
• The Golf Course results are anticipated to increase slightly as a result of rate increases for play.
The Airport is undergoing a reconstruction and economic development revitalization, as a result of master .,
planning initiatives, primarily funded with Federal Aviation Administration and Florida State grants. In
addition, the airport has entered into a lease agreement for T-hangers that are anticipated to increase
revenue upon completion of construction. The results of operations, however, are expected to be modest ..
for several years.
CONTACTING THE CITY'S FINANCIAL MANAGEMENT Pft
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 Finance Department at City of
00
Sebastian, 1225 Main Street, Sebastian, Florida 32958.
OR
go
me
A
a1
on
12 04
City of Sebastian, Florida
Statement of Net Assets
September 30, 2003
Governmental
Business -type
Activities
Activities
Total
ASSETS
Cash and cash equivalents
S 755,776
$ 31,502
$ 787,278
Investments
7,222,885
1,438,298
8,661,183
Receivables
1,130,941
167,121
1,298,062
Special assessment receivable
45,372
-
45,372
Prepaid items
154,024
3,954
157,978
Inventory
26,533
10,468
37,001
Restricted assets:
Temporarily restricted:
Cash and cash equivalents
15,470
-
15,470
Investments
9,202,856
505,435
9,708,291
Permanently restricted:
Investments
431,038
-
431,038
Overfunded pension costs
110,832
-
110,832
Deferred charges
297,659
97,279
394,938
Capital assets (net of accumulated depreciation):
Land
4,653,603
9,060
4,662,663
Buildings
1,454,536
136,049
1,590,585
Improvements other than buildings
1,532.722
640,253
2,172,975
Machinery and equipment
2,121,513
131,994
2,253,507
Infrastructure
8,846,491
1,348,415
10,194,906
Construction in progress
1,634,161
1,342,424
2,976,585
Total assets
39,636,412
5,862.252
45,498,664
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable
928,197
167,116
1,095,313
Due to other governments
748
7,653
8,401
Other deposits held in escrow
7,360
200
7,560
Deferred revenues
67,105
319
67,424
Accrued compensated absences
46,666
5,562
52,228
Capital leases
122,076
-
122,0711
Total current liabilities (payable
from current assets)
1,172,152
180,950
1,353,002
Current liabilities (payable from restricted assets):
Accounts payable
8
14,209
14,217
Accrued interest payable
182,666
42,745
225,411
Customer deposits
-
39,361
39,361
Notes payable
196,270
-
196,270
Bonds payable
544,944
230,000
774,944
Total current liabilities (payable
from restricted assets)
923,888
326,315
1,250,203
Non -current liabilities:
Accrued compensated absences
711,779
-
711,779
Capital leases
550,452
-
550,452
Notes payable
2,209,758
-
2,209,758
Bonds payable
9,032,671
1,832.328
10,864,999
Total non -current liabilities
12.504,660
1,832,328
14,336,988
Total liabilities
14.600,700
2,339,493
16,940,193
NET ASSETS
Invested in capital assets, net of related debt
16,339,222
1,545,867
17,885,089
Restricted for:
Capital projects
1,430,243
-
1,430,243
Debt service
11,414
317,159
328,573
Road projects
955,374
-
955,374
Perpetual care:
Expendable
32,364
-
32,364
Nonexpendable
431,038
-
431,038
Other purposes
374,833
188,276
563,109
Unrestricted
5,461,224
1,471,457
6,932,681
Total net assets
$ 25,035,712
$ 3,522,759
$ 28,558,471
The accompanying notes to Financial statements are an integral part of this financial statement.
13
Function/Program
Governmental activities:
General government
Public safety
Physical environment
Transportation
Economic environment
Cultural/Recreation
Interest and fiscal charges
Total governmental activities
Business -type activities:
Golf Course
Airport
Total business -type activities
Total government
City of Sebastian, Florida
Statement of Activities
For the year ended September 30, 2003
Expenses
$ 1,620,616 S
3,391,831
1,920,200
2,401,037
166,024
747,910
312,367
10,559,985
Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Services
Contributions
Contributions
941,781
S 19,135
$ 828,993
130,814
82,844
22,287
799,637
-
336,870
-
818,850
761,226
46,736
-
616,723
1,918,968
920,829
2,566,099
1,363,359 1,377,245
315,941 168,451
1,679,300 1,545,696
S 12,239,285 S 3,464,664 S
General Revenues:
Property taxes, levied for general purposes
Sales and use taxes
Franchise fees
State shared revenues
Interest earnings
Miscellaneous
Total general revenues
Transfers
Total general revenues and transfers
Change in net assets
Net assets - beginning
Net assets - ending
1,149,437
- 1,149,437
920,829 S 3,715,536
Net (Expense) Revenue and
Changes in Net Assets
Governmental Business -type
Activities Activities
$ 169,293 S
(3,155,886)
(783,693)
(820,961)
(166,024)
(84,451)
(312,367)
(5,154,089)
(5,154,089)
2,944,456
1,780,717
756,194
1,523,524
241,358
79,662
7,325,911
(534,000)
6,791,911
1,637,822
23,397,890
S 25,035,712 S
Total
169,293
(3,155,886)
(783,693)
(820,961)
(166,024)
(84,451)
(312,367)
(5,154,089)
13,886
13,886
1,001,947
1,001,947
1,015,833
1,015,833
1,015,833
(4,138,256)
- 2,944,456
- 1,780,717
- 756,194
- 1,523,524
21,789 263,147
9,072 88,734
30,861 7,356,772
534,000
564,861
7,356,772
1,580,694
3,218,516
1,942,065
25,339,955
3,522,759 $
28,558,471
The accompanying notes to financial statements are an integral part of this financial statement.
I I I I I I I I I I I
City of Sebastian, Florida
Balance Sheet
Governmental Funds
September 30, 2003
_
Public
Other
Total
Discretionary Capital Facilities Governmental
Governmental
General Sales Tax Improvements Improvements
Funds
Funds
ASSETS
-
Cash and cash equivalents $
335,432 $ 25,380 $ 161,509 $ 800 $
248,125
$ 771,246
Investments
3,277,846 11,606 866,438 8,752,367
3,948,522
16,856,779
Accounts receivables
285,097 - - -
-
285,097
_
Special assessments receivable
- - - -
45,372
45,372
Due from other funds
53,745 - - -
-
53,745
Due from other governments
I79,097 293,801 12,691 -
65,379
550,968
Interest receivable
10,258 5 - 67,941
17,776
95,980
Inventory
26,533 - - -
-
26,533
Prepaid items
7,134 - - -
146,890
I54,024
Advance to other funds
108,000 - - -
-
108,000
-
Total assets $
4,283,142 $ 330,792 $ 1,040,638 $ 8,821,108 $
4,472,064
$ 18,947,744
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $
326,079 $ 136 $ 249,527 $ 228,145 $
170,984
$ 974,871
go
Interest payable
- - - -
6,194
6,194
Due to other funds
- - - -
53,745
53,745
Due to other governments
748 - _ _
_
748
Advance from other funds
- - - -
108,000
108,000
Deferred revenues
67,105 - - -
45,372
112,477
- -
Other deposits held in escrow
7,360 - - -
-
7,360
Total liabilities
401,292 136 249,527 228,145
384,295
1,263,395
oft
Fund balances:
_
Reserved for:
Encumbrances
194,398 - 127,701 299,511
209,448
831,058
�w
Advance to other funds
108,000 - - -
-
108,000
Debt service
- - _ -
488,779
489,779
-
Capital projects
1,000,000 - - -
-
1,000,000
Property and casualty
100,000 - - -
-
100,000
Cemetery care
- - - -
463,402
463,402
-
Law enforcement
- - - -
8,140
8,140
Unreserved:
A
Designated for emergencies
350,000 - - -
-
350,000
Designated for employee events
7,706 - - -
-
7,706
Undesiguated, reported in:
W
General fund
2,121,746 - - -
-
2,121,746
Special revenue funds
- 330,656 - -
1,880,929
2,211,585
---
Capital project funds
- - 663,410 8,293,452
1,037,071
9,993,933
Total fund balances
3,881,850 330,656 791,111 8,592,963
4,087,769
17,684,349
Total liabilities and fund balances $
4,283,142 $ 330,792 $ 1,040,638 $ 8,821,108 $
4,472,064
Amounts reported for governmental activities in the statement of net assets are different because:
Aft
Capital assets used in governmental activities are not financial resources, therefore, are not reported in the funds.
20,243,026
Negative net pension obligation resulting from overfunding of the police officers' pension plan.
110,832
- -
Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds.
(13,070,291)
Accrued long term debt interest expenses are not financial uses, therefore, are not reported in the funds.
(176,472)
Special assessment receivables are not
financial resources in the current period, therefore, are reported as deferred
revenues.
45,372
Grant revenues are not recognized in current
period because the resources are not available, therefore, are
not reported in the fund.
198,896
r.r
Net assets of governmental activities
$ 25,035,712
The accompanying notes to financial statements are an integral part of this financial statement.
an 15
City of Sebastian, Florida
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2003
Public Other Total
Discretionary Capital Facilities Governmental Governmental r
General Sales Tax Improvements Improvements Funds Funds
REVENUES:
Taxes:
Property
Public utility
Sales
Motor fuel
Franchise tees
Licenses and permits
Intergovernmental
Impact fees
Charges for services
Fines
Special assessments
Investment earnings
Contributions and donations
Otherrevenue
Total revenues
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Culture and recreation
Debt Service:
Principal
Interest
Capital projects
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING
SOURCES (USES)
Transfers in
Transfers out
Debt proceeds
Total other financing sources (uses)
Net changes in fund balances
Fund balances - beginning
Fund balances - ending
$ 2,752,423
S -
$ - $
-
$ 192,033
S 2,944,456
1,780,717
-
-
-
-
1,780,717
-
1,925,205
-
-
-
1,925,205
-
-
-
-
675,554
675,554
756,194
-
-
-
-
756,194
878,097
-
-
-
-
878,097
1,730,489
-
44,289
-
10,459
1,785,237
00
-
-
-
-
395,850
395,850
129,101
-
-
-
792,018
921,119
116,752
-
-
-
3,000
119,752
-
-
-
-
22,560
22,560
81,708
25,429
-
67,939
66,282
241,358
20,725
-
-
800
6,301
27,826
62,478
-
-
-
774
63,252
�w
8,308,684
1,950,634
44,289
68,739
2,164,831
12,537,177
2,001,654
-
-
-
169
2,001,823
3,660,061
-
-
-
29,109
3,689,170
1,067,187
-
11,912
-
312,972
1,392,071
1,195,741
-
-
-
450,563
1,646,304
-
-
-
-
166,024
166,024
672,179
-
-
-
-
672,179
...
-
-
-
-
361,024
361,024
-
-
-
-
158,043
158,043
OR
-
-
1,050,659
679,776
1,620,519
3,350,954
8,596,822
-
1,062,571
679,776
3,098,423
13,437,592
ttw
(288,138)
1,950,634
(1,018,282)
(611,037)
(933,592)
(900,415)
531,241
-
525,000 -
(284,000)
(2,210,565)
(261,117) -
-
-
- 9,204,000
247,241
(2,210,565)
263,883 9,204,000
(40,897)
(259,931)
(754,399) 8,592,963
3,922,747
590,587
1,545,510 -
$ 3,891,850 $ 330,656 $ 791,111 $ 8,592,963
The accompanying notes to financial statements are an integral part of this financial statement.
an
1,936,667
2,992,908
(771,226)
(3,526,908) an
296,000
9,500,000
1,461,441
8,966,000
527,849
8,065,585
3,559,920
9,618,764
4,087,769 $
17,684,349
A
dw
16
City of Sebastian, Florida
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds
To the Statement of Activities
- . For the Year Ended September 30, 2003
Net change in fund balances - total governmental funds $ 9,065,585
Amount reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlay as expenditures. However, in the statement of
activities, the cost of those assets is allocated over their estimated useful fives as depreciation
expense. 2,508,238
ri Governmental funds only report the disposal of assets to the extent proceeds are received from
the sale. In the statement of activities, a gain or loss is reported for each disposal. (7,975)
.. Overfunded pension contributions are reported as expenditures in the fund financial statements
and recorded as a net pension asset on the statement of net assets. 110,832
Debt proceeds provide current financial resources to governmental funds, but debt increases
long-term liabilities in the statement of net assets. (9,207,604)
Repayment of bond principal, notes principal, and capital lease principal are expenditures in
the governmental funds, but the payment reduces long-term liabilities in the statement of net
- assets.
361,024
Some expenses reported in the statement of activities do not require die use of current financial
- resources, therefore, are not reported as expenditures in the governmental funds.
$ (370,498)
Some revenues reported in the governmental funds have been recognized as revenues in the
_ prior fiscal year in the statement of activities.
(20,676)
Governmental funds report non -exchange transactions when the applicable eligibility
requirements have been met and resources are available. However, in the statement of
activities, non -exchange transactions are recognized when the eligibility requirements are met.
198,896
Change in net assets of governmental activities
$ 1,637,822
The accompanying notes to fmancial statements are an integral part of this financial statement.
17
City of Sebastian, Florida am
Statement of Net Assets
Proprietary Funds
September 30, 2003 w
Enterprise Funds
Golf Course
Airport
Totals
ON,
ASSETS
Current assets:
Cash and cash equivalents
$ 27,139
$ 4,363 S
31,502
r
Investments
492,166
946,132
1,438,298
Accounts receivable
114
27,526
27,640
Due from other governments
-
139,480
139,480
Interest receivable
I
-
I
Inventory
10,468
-
10,468
Oft
Prepaid expenses
3,704
250
3,954
Total current assets
533,592
1,117,751
1,651,343
Noncurrent assets:
Restricted asset:
Investments
505,435
-
505,435
Unamortized bond issue costs
97,279
-
97,279
Capital assets:
a
Land
-
9,060
9,060
Buildings
333,189
64,570
397,759
Improvements other than buildings
226,537
570,980
797,517
Machinery and equipment
336,941
162,581
499,522
Ow
Infrastructure
1,616,948
757,073
2,374,021
Construction in process
-
1,342,424
1,342,424
Less accumulated depreciation
(1,389,612)
(422,496)
(1,812,108)
Total noncurrent assets
1,726,717
2,484,192
4,210,909
Total assets
2,260,309
3,601,943
5,862,252
LIABILITIES
Current liabilities (payable from current assets):
Sri'
Accounts payable
17,677
149,439
167,116
Due to other governments
7,118
535
7,653
Other deposits held in escrow
-
200
200
Deferred revenues
-
319
319
•
Accrued compensated absences
3,223
2,339
5,562
Total current liabilities (payable
from current assets)
28,018
152,832
180,850
Current liabilities (payable from restricted assets):
Retainage payable
-
14,209
14,209
Accrued interest payable
42,745
-
42,745.
Customer deposits
39,361
-
39,361
to
Bonds payable
230,000
-
230,000
Total current liabilities (payable
from restricted assets)
312,106
14,209
326,315
Non -current liabilities:
so
Bonds payable
1,832,328
-
1,832,328
Total non -current liabilities
1,832,328
-
1,832,328
Total liabilities
2,172,452
167,041
2,339,493
am
NET ASSETS
Invested in capital assets, net of related debt
(938,325)
2,484,192
1,545,867
Restricted for:
Debt service
317,159
-
317,159
sm
Other purposes
188,276
-
188,276
Unrestricted
520,747
950,710
1,471,457
Total net assets
$ 87,857
$ 3,434,902 $
3,522,759
in
The accompanying notes to financial statements are an integral part of this financial statement.
AM
18 OR
City of Sebastian, Florida
Statement of Revenues, Expenses and Changes in Fund Net Assets
Proprietary Funds
+
For the
Year Ended September 30, 2003
Enterprise Funds
-
Golf Course
Airport
Totals
Operating revenues:
�w
Charges for fees and rents:
_
Golf course fees pledged as
security for revenue bonds
$ 1,347,768
S - S
1,347,768
�+
Rents
29,477
168,451
197,928
Other revenue
9,072
-
9,072
Total operating revenues
1,386,317
168,451
1,554,768
-
Operating expenses:
Salaries, wages and employee benefits
286,304
121,349
407,653
Contractual services, materials and supplies
801,748
99,396
901,144
Depreciation
124,800
95,196
219,996
�.
Total operating expenses
1,212,852
315,941
1,528,793
Operating income (loss)
173,465
(147,490)
25,975
Nonoperating revenues (expenses):
_
Interest income
-
7,952
7,952
Interest income pledged as security
for revenue bonds
13,837
-
13,837
Interest expense
(137,408)
-
(137,408)
Bond amortization expense
(13,099)
-
(13,099)
Total nonoperating revenues (expenses)
(136,670)
7,952
(128,718)
Income before capital contribution
W
and transfers
36,795
(139,538)
(102,743)
_
Capital contributions
-
1,149,437
1,149,437
Transfers in
-
534,000
534,000
Change in net assets
36,795
1,543,899
1,580,694
Total net assets - beginning
51,062
1,891,003
1,942,065
�e
Total net assets - ending
$ 87,857
$ 3,434,902 $
3,522,759
am
The accompanying notes to financial statements are an integral part of this financial statement.
■+ 19
City of Sebastian, Florida
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2003
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 CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets
Receipts from capital grants
Receipt from capital transfers
Capital contributions
Principal paid on revenue bond maturities
Bond issuance costs
Interest paid on revenue bonds
Net cash provided (used) by capital and
related financing activities
CASH FLOWS FROM INVESTING
ACTIVITIES:
Interest on investments
Net cash provided by investing activities
Net increase (decrease)in cash and cash equivalents
Cash and cash equivalents, October 1
Cash and cash equivalents, September 30
Enterprise Funds _
Golf Course
Airport
$ 1,354,651
S 146,055 S
(799,176)
(96,075)
(285,799)
(119,315) _
269,676
(69,335)
(1,100)
(1,174,664)
_
1,043,523
534,000
20,179
(220,000)
-
8,322
(98,212)
_ -
(310,990)
423,038
13,83E 7,952
13,836 7,952
(27,478) 361,655
1,052,218 588,840
$ 1,024,740 $ 950,495 S
The accompanying notes to financial statements are an integral part of this financial statement.
20
as
a*
r
Totals
alk
1,500,706
(895,251)
(405,114) so
200,341
No
(1,175,764) am
1,043,523
534,000
20,t79 100
(220,000)
8,322
(98,212)
r
112,048
00
21,788
21,788 w
334,177
ew
1,641,058
1,975,235
04
as
Wk
C
to
on
OR
City of Sebastian, Florida
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2003
(Continued)
Reconciliation of operating income (loss) to
net cash provided (used) by operating activities:
Operating income (loss)
Adjustments to reconcile operating income to net
cash provided (used) by operating activities:
Depreciation expense
(Increase) Decrease in assets:
Accounts receivable
Prepaid expenses
Inventories
Increase (Decrease) in liabilities:
Accounts payable
Due to other governments
Customer deposits
Accrued compensated absences
Deferred revenues
Total adjustments
Net cash provided (used) by operating activities
on Cash and cash equivalents reconciliation:
Current assets:
Cash and cash equivalents
No Investments
Restricted asset:
_ Investments
Cash and cash equivalents at September 30
am
Golf Course
S 173,465 $
124,800
(38)
(1,979)
2,735
(5,302)
7,118
505
(31,628)
96,211
$ 269,676 $
S 27,139 $
492,166
505,435
$ 1,024,740 $
Enterprise Funds
Airport
M The accompanying notes to financial statements are an integral part of this financial statement.
(147,490) S
95,196
(22,596)
490
2,296
535
200
2,034
78,155
(69,335) $
4,363 $
946,132
950,495 $
Totals
25,975
219,996
(22,634)
(1,489)
2,735
(3,006)
7,653
200
2,539
(31,628)
174,366
200,341
31,502
1,438,298
505,435
1,975,235
rr.
21
City of Sebastian, Florida
Statement of Fiduciary Net Assets
Fiduciary Funds
September 30, 2003
ASSETS
Cash and cash equivalents
Receivables:
Interest and dividends
Total receivables
Investments, at fair value:
U.S. government obligations
Federal agency notes
Common stock
Total investments
Total assets
LIABILITIES
Refunds payable
Total liabilities
NET ASSETS
Held in trust for pension benefits
Pension
Trust
Agency
Police
Officers'
Performance
Pension
Deposits
$ 399,573
S 2,752
13,211
13,211
736,769
802,477
1,110,727
-
2,649,973
-
3,052,757
2,752
$ 3,052,757 $
2,752
2,752
The accompanying notes to financial statements are an integral part of this financial statemet
22
r
r
r
•
41
at
ON
PI
City of Sebastian, Florida
Statement of Changes in Fiduciary Net Assets
Fiduciary Fund - Pension Trust
For the Year Ended September 30, 2003
Police
Officers'
Pension
ADDITIONS
Contributions:
Employer
$ 153,111
Plan members
65,942
State
92,714
Total contributions
311,767
Investment earnings:
Net increase in fair value of investments
91,811
Interest and dividends
105,435
Total investment earnings
197,246
Less investment expenses
(19,130)
Net investment earnings
178,116
Total additions
489,883
DEDUCTIONS
Benefits 43,479
Refunded contributions 8,229
Administrative expenses 1,719
Total deductions 53,427
Change in net assets 436,456
Net assets - beginning of year 2,616,301
Net assets - end of year $ 3,052,757
The accompanying notes to financial statements are an integral part of this financial statement.
M 23
r
CITY OF SEBASTIAN, FLORIDA
Notes to the Financial Statements ..
September 30, 2003
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Sebastian (the "City"), a Florida Municipal Corporation, was incorporated in 1924 under Sections 1826-1832 of the Revised
Florida Statutes. The City has a population of approximately 18,425 living in an area of approximately 13.8 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 Cityhave been prepared in conformity with U.S. generally accepted accounting r
p p y g y p g principles as applied to
governmental units. The more significant of the City's accounting policies are described below:
A. Reporting Entitv
In evaluating the City as a reporting entity, management has included all component units in accordance with Governmental
Accounting Standards Board (GASB) Statement No. 14, "Defining the Financial Reporting Entity". The Financial Reporting Entity
consists of the City of Sebastian (the primary government) and its blended component units. Blended component units are legally on
separate organizations for which the City Council is financially accountable. The component units discussed below are included in
the City's reporting entity.
Blended Comoonent Units
The following component units are blended with the primary government for financial statement purposes because the component
unit's governing body is substantially the same as the City Council or because the component unit exclusively serves the City. The
financial statements of these component units may be obtained from the City Clerk of the City of Sebastian.
ho
Community Redevelopment Agency (CRA) — The governing body of the CRA is the Sebastian City Council. The CRA is accounted
for in a special revenue fund entitled "Riverfront Redevelopment". ho
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 oft
"Police Officers' Pension".
B. Basic Financial Statements
.n
The government -wide financial statements (Le., the statement of net assets and the statement of changes in net assets) report
information on all of the nonfiduciary activities of the primary government and its blended component units. For the most part, the
effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes
and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and 04
charges for support.
Separate fund financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter
are excluded from the govemment-wide financial statements. Major individual governmental funds and major individual enterprise
funds are reported as separate columns in the fund financial statements.
GASB Statement No. 34 Basic Financial Statements and Manaeement Discussion and Analvsis for State and Local Governments sets
forth minimum criteria (percentage of the assets, liabilities, revenues or expenditures/expenses of either fund category or the
governmental and enterprise funds combined) for the determination of major funds. The nonmajor funds are combined in a column
in the fund financial statements and detailed in the combining section.
C. Measurement Focus. Basis of Accounting. and Financial Statement Presentation
1. Economic Resources Measurement Focus and Accrual Basis of Accounting,
The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis
of accounting, as are the proprietary fund and fiduciary fund financial statements. This means that revenues are recorded when
earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash Flows. Property taxes
are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as ON
all eligibility requirements imposed by the provider have been met.
Ift
24
OR
In applying the "susceptible to accrual" concept to intergovernmental revenues pursuant to GASB Statement No. 33, Accountine
and Financial Reoortine for Nonexchanee Transactions as amended by GASB Statement No. 36, Recipient Renorting of Certain
Shared Nonexchanee Revenues (the City may act as either provider or recipient), the provider should recognize liabilities and
expenses and the recipient should recognize receivables and revenue when the applicable eligibility requirements including time
-- requirements, are met. Resources transmitted before the eligibility requirements are met should, under most circumstances, be
reported as advances by the provider and deferred revenue by the recipient.
Private -sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both
the government -wide and proprietary fund financial statements to the extent that those standards do not conflict with or
contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following
subsequent private -sector guidance for their business -type activities and enterprise funds, subject to this same limitation. The
- government has elected not to follow subsequent private -sector guidance.
As a general rule the effect of interfund activity has been eliminated from the govemment-wide financial statements.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by
program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program
revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital
_. requirements of a particular function or segment. Taxes and other items not properly included among program revenues are
reported instead as general revenues.
■a
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses
- - generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal
ongoing operations. The principal operating revenues of the golf course fund are charges to customers for sales and services and
M for the airport fund lease revenue. Operating expenses for enterprise funds include cost of sales and services, administrative
expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating
revenues and expenses.
iM The agency fund reports only assets and liabilities; therefore, it does not have a measurement focus. However, it uses the accrual
basis of accounting to recognize receivables and payables.
2. Modified Accrual
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified
accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. "Available" means
an collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this
purpose, the City considers revenues to be available if they are collected within sixty (60) days of the end of the current fiscal
period. All material revenues, except for occupational licenses and property taxes, are considered measurable and available and
are thus susceptible to accrual. Occupational licenses are not considered available since neither a legally enforceable claim
nr exists nor were the related services provided before October 1, 2002. Expenditures are generally recognized under the modified
accrual basis of accounting when the related fund liability is incurred, if measurable. An exception to this general rule is
principal and interest on general long -tens obligations, which are recognized when due.
to Property taxes, public utility taxes, franchise fees, sales and fuel taxes, licenses, and interest associated with the current fiscal
period are all considered to be susceptible to accrual and so have been recognized as revenues in the current fiscal period. Only
the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as
revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received
by the City.
- The government reports the following major governmental funds:
The general fiord is the government's primary operating fund. It accounts for all financial resources of the
general government, except those required to be accounted for in another fund.
The discretionary sales tar fund accounts for the financial resources used for infrastructure improvements
W and equipment purchases.
The capital improvements fund accounts for the accumulated resources associated with infrastructure
improvements such as drainage, parks and buildings.
The public facilities improvements fund accounts for the resources associated with debt for the purposes of
constructing and equipping a new city hall complex and renovation and expansion of the police station.
The government reports the following major proprietary funds:
The golf coursefund accounts for the activities of the municipal golf course.
The airport fund accounts for the activities of the municipality's general aviation airport.
25
Additionally, the government reports the following fund types:
t,
The pension trust fund accounts for the activities of the Police Officer's Retirement System, which
accumulates resources for pension benefit payments to qualified police officers.
The performance deposits fund accounts for deposits placed by bidders and developers to guarantee
performance pursuant to bid or contract and for deposits for use of City owned buildings and parks to
guarantee performance pursuant to contract. These funds are held by the City as agent for individuals and
businesses.
When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first,
and then unrestricted resources as needed.
D. Assets. Liabilities and Fund Eauitv
1. Cash and cash eouivalents
a
Cash and cash equivalents represents all investments that are short term, highly liquid, and readily convertible to a specified .�
cash value. These investments generally have original maturities of three months or less. Cash equivalents consist of cash in
banks and on hand.
2. Investments
M
Investments consist of U.S. Treasury Securities, U.S. Government Agency Securities, common stock, a guaranteed investment
contract and the Local Government Surplus Funds Trust Fund Investment pool (Pool). The Local Government Surplus Funds ON
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.
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 of the Pool 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. Except for
the Pool, investments, including the Police Officers' Pension Fund, are reported at their fair value based on the quoted market
price or the best available information. No
Pursuant to Florida Statutes, interest income earned on Local Option Gas Tax funds is required to be earmarked for
transportation infrastructure improvements. Local Option Gas Tax funds held as investments in the Transportation Projects
fund, which are part of an internal investment pool, are assigned and recorded in the Local Option Gas Tax Special Revenue so
Fund in accordance with these legal restrictions.
3. Interfund Receivables and Pavables
During the course of operations, transactions occur between individual funds that may result in amounts owed between funds.
Short-term interfund loans are reported as "due to and from other funds." Due to and from other funds are eliminated in the
Statement of Net Assets. There were no interfund loans between the Governmental funds and Proprietary funds as of September
30, 2003.
Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable
governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.
As of September 30, 2003, the General Fund has an advance to the Riverfront Redevelopment Fund in the amount of S 108,000. P"
The advance is a loan authorized by the City Council to the Riverfront Redevelopment Fund for a redevelopment plan contract
with Iler & Associates.
4. Receivables
M
Receivables consist of trade receivables, due from other governments and interest receivable (see Note N.C. on page 31 for
detail) and are recorded at the net realizable value. The City, as of September 30, 2003, has no allowance for doubtful accounts, Ift
since all receivables are considered collectible.
5. Inventory and Prepaid Items
Inventory is valued at cost using the average cost method. Inventory in the General fund consists of materialsand supplies held
for consumption. The cost is recorded as an expenditure/expense at the time the individual inventory items are consumed.
Inventory in the Golf Course fund consists of supplies held for resale.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both
government -wide and fund financial statements.
OR
26
PI
- 6. Restricted Assets
'^ Certain assets of the governmental activities, representing equity in investments, are classified as restricted on the statement of
net assets because they are limited as to use by Federal, State or local law.
M Certain proceeds of the Golf Course enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are
classified as restricted assets on the statement of net assets because their use is limited by applicable bond covenants. The
"revenue bond renewal and replacement "account is used to report resources set aside to fund asset renewals and replacements.
The "revenue bond airport rent" account is used to report resources set aside to subsidize potential deficiencies in lease
,. payments that could adversely affect debt service payments.
7. Capital Assets
Capital assets, which include land, buildings, improvements, equipment, and infrastructure assets (e.g., roads, bridges,
sidewalks, and similar items), are reported in the applicable governmental or business -type activities columns in the
government -wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more
than $500 and an estimated useful life in excess of one year. Such assets are recorded at historical cost, if purchased, and at fair
owthan
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.
Capital asset depreciation is recognized using the straight-line method over the estimated useful lives as follows:
Classification
Ranee of Lives
Buildings and improvements
20-40 years
Public domain infrastructure
40-50 years
,^ System infrastructure
15-30 years
Improvements other than buildings
10-20 years
Machinery, equipment and other
5-15 years
Airport runways
25 years
8. Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation and sick leave benefits and are accounted
M 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.
M 9. Lone -Term Liabilities
In the government -wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and
.. other long -tern obligations are reported as liabilities in the applicable governmental activities, business -type activities, or
proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and
amortized over the life of the bonds using the straight-line method. Bonds payable are recorded net of the applicable bond
premium or discount. Bond issuance costs are reported as deferred charges and amortized over the life of the related debt. In
the fund financial statements, governmental fund types recognize bond premium and discounts, as well as debt issuance costs,
during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt
issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses.
Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
OR
10. Fund Equity
In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for
M appropriation or are legally restricted by outside parties for use for a specific purpose. The nature and purpose of these reserves
are explained as follows:
Reserved for Encumbrances - represents encumbrances outstanding at year end that the City intends to
honor as commitments.
Reserved for Advance to Other Funds- represents long-term interfund loan.
Reserved for Debt Service - represents, in accordance with legal restrictions, amounts for payment of
principal and interest maturing in later years.
�+ Reserved for Capital Projects - represents amounts restricted for capital projects.
Reserved for Property and Casualty -represents amounts restricted for property and casualty claims.
Reserved for Law Enforcement - represents, in accordance with State Statutes, funds required to be spent
on drug education and awareness activities.
Reserved for Cemetery Care - represents amounts restricted for use in cemetery maintenance.
Designations of unreserved fund balances are not required by law or accounting principles, but are further classifications of fund
equity to identify funds that are not earmarked for specific purposes.
am
27
r
II. RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS on
A. Explanation of Differences Between the Governmental Fund Balance Sheet and the Government -wide Statement,
of Net Assets
The governmental fund balance sheet includes a reconciliation between fund balance -total governmental funds and net assets -
governmental activities as reported in the government -wide statement of net assets.
"Total fund balances" of the City's governmental funds (517,684,349) differs from "net assets" of governmental activities
(S25,035,712) reported in the statement of net assets. This difference primarily results from the long-term economic focus of the
statement of net assets versus the current financial resources focus of the governmental fund balance sheet. The effect of the
differences is illustrated below. *r
Caoital related items
When capital assets (property, plant, equipment) that are to be used in the governmental activities are purchased or constructed, the
cost of those assets are reported as expenditures in governmental funds. However, the statement of net assets included those capital r
assets among the assets of the City as a whole.
Cost of capital assets S 31,260,507
Accumulated depreciation (11,017,481)
Total S 20.243.026 r
Net oension obligation
When net pension obligation is a negative amount, the amount is presented as an asset on the statement of net assets.
Negative net pension obligation $ 110 832
ur
Lone -term debt transactions
Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period and accordingly
are not reported as fund liabilities (both current and long-term) are reported in the statement of net assets. Balances at September 30,
so
2003 were:
Bonds payable:
Special assessment bonds, Series 1996 S (77,615)
r
Infrastructure sales surtax revenue bonds,
Series 2003 (9,500,000)
Less: Deferred charge for issuance costs 282,649 (9,217,351)
Notes payable (2,406,028)
r
Less: Deferred charge for issuance costs 7,473 (2,398,555)
Capital lease payable (672,528)
r
Less: Deferred charge for issuance costs 7,537 (664,991)
Compensated absences (711.779)
Total sr t 3 070.291)
r
Accrued interest
Accrued liabilities in the statement of net assets differs from the amount reported in governmental funds due to accrued interest on
bonds payable, notes payable, capital lease. r
Bonds S (149,122)
Notes (10,014)
Capital lease (17,336)
Total (1�72) r
Deferred revenues
Deferred revenues in the statement of net assets differs from the amount reported in the governmental funds due to special assessment
receivables. Governmental fund financial statements report unearned revenues or revenues which are measurable but not available as r
deferred revenues. However, deferred revenues in governmental funds are susceptible to full accrual on government -wide financial
statements.
Deferred revenues reduced 45.37
r
Accrued grant revenues
Some grant revenues are not recognized in the current period because the resources are not available, therefore, these revenues are
not reported in the fund.
Accrued grant revenues $_I98.89St on
on
w
M
B. Explanation of Differences Between the Governmental Fund Statement of Revenues. Exoenditures_, an_d_Ch_anees
in Fund Balances and the Government -wide Statement of Activities
The "net change in fund balances" for governmental funds ($8,065,585) differs from the "change in net assets" for governmental
activities ($1,637,822) reported in the statement of activities. The differences arise primarily from the long-term economic focus of
the statement of activities versus the current financial resources focus of the governmental funds. The effect of the differences is
rW illustrated below.
Capital related items
When capital assets that are to be used in governmental activities are purchased or constructed, the resources expended for those
assets are reported as expenditures in governmental funds. However, in the statement of activities, the costs of those assets is
allocated over their estimated useful lives and reported as depreciation expense. As a result, fund balances decrease by the amount of
financial resources expended, whereas net assets decrease by the amount of depreciation expense charged for the year.
R Capital outlay S 3,743,537
Depreciation expense (1,235,299)
Difference S 2.508138
P+ In the statement of activities, only the gain and loss on the sale of capital assets are reported. However, in the governmental funds, the
proceeds from the sale increase financial resources.
Gain on sale of fixed assets S 16,410
Loss on sale of fixed assets (24,385)
Net adjustment
04 Net pension obligation
When net pension obligation is a negative amount, the amount represents over funding and reduces the expenses in the statement of
activities.
Negative net pension obligation S 110,832
10
Lone -term debt transactions
In the statement of activities, debt proceeds increase long-term liabilities. However, in the governmental funds, debt proceeds are
treated as other financing resources since they provide current financial resources to governmental funds.
Debt proceeds $ (9,500,000)
Less: Deferred charges for issuance costs 292,396
Net adjustment S l9.207.fi041
Repayments of bond principal, notes payable principal, and capital lease principal are reported as an expenditure in the governmental
funds and, thus, have the effect of reducing fund balance because current financial resources have been used. However, the principal
payments reduce the liabilities in the statement of net assets and do not result in an expense in the statement of activities.
Bond principal payment made $ 56,684
Notes payable principal payment made 187,911
Capital lease principal payment made 116,429
M Total
$__51.024
Some expenses reported in the statement of activities do not require the use of current financial resources, therefore, are not reported
•
as expenditures in govemmental funds.
Net change in compensated absences $ (216,174)
Net accrued bond interest expense (145,856)
M Net accrued notes interest expense 531
Net accrued capital lease interest expense 3,002
Amortization of issuance costs (12,001)
Net adjustment $ 1370.yQ$3
Special assessment revenues
Revenues collected on special assessments are reported in the governmental funds. However, in the statement of activities, the
assessment revenues are recognized when they are earned.
Special assessment revenues L---(20.fi26)
Accrued erant revenues
on Some grant revenues are not recognized in the current period because the resources are not available, therefore, these revenues are
not reported in the fund.
Accrued grant revenues $ 198.896
29
.,
III. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
.111
Bud2etary 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 govemment's
City Manager so that a budget may be prepared. Before July 31, the proposed budget is presented to the government's council for review.
The council holds budget workshops and public hearings and a final budget must be prepared and adopted no later than September 30.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in
order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the General,
Special Revenue, Debt Service, and Capital Projects funds. Encumbrances outstanding at year end are carried forward to the next years' s
budget and are reported as a reservation of fund balance in the current financial statements since they do not constitute actual expenditures
or liabilities.
Actual results of operations presented in accordance with U.S. generally accepted accounting principles (GAAP basis) and the City's
accounting policies do not recognize encumbrances as expenditures until the period in which the actual goods or services are received and
a liability is incurred. It is necessary to include budgetary encumbrances to reflect actual revenues and expenditures on a basis consistent
with the City's legally adopted budget. (See page 42)
IV. DETAIL NOTES ON ALL FUNDS '
A. Deposits
At September 30, 2003, the carrying amount of the City of Sebastian's deposits with banks was $803,284 and the bank balance was r
$988,881. 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
010
association, the required collateral shall have a market value equal to 125% of the deposits.
B. Investments
Statutes, ordinances, and policies authorize the City to invest in the Local Government Surplus Trust Fund administered by the
Florida State Board of Administration, direct obligations of the United States or agencies thereof, interest bearing time deposits or
savings accounts, overnight repurchase agreements, mutual funds, stocks, and bonds.
The City's investments are categorized to give an indication of the level of risk assumed by the entity at September 30, 2003.
(I) --Includes investments that are insured or registered or for which the securities are held by the City or its
safekeeping agent in the City's name.
(2)—Includes investments that are uninsured or unregistered securities held by the pledging financial institution's
trust department or agent in the City's name.
(3)—Includes investments that are uninsured or unregistered securities held by the pledging financial institution or
its trust department or agent, but not in the City's time.
Category Fair
I Value
Primary Government
U.S. Treasury Securities S 736,769 $ 736,769
Common Stock 1,110,727 1,110,727
U.S. Government Agencies 3,303,727 3,303,727
Sub -total S 5,151,223 5,151,223
Investments not subject to categorization:
Local Government Surplus
Funds Trust Fund 7,546,895
Guaranteed Investment Contract 8,752,367
Total Investments $ 21,450,485
NO
so
W
OR
OR
30
C. Receivable and Pavable Balances
Receivables
Receivables at September 30, 2003 were as follows:
Governmental activities:
General
Discretionary sales tax
Capital improvements
Public facilities improvements
Other governmental
Total - governmental activities
m
Business -type activities:
Golf course
Airport
Total - business -type activities
All receivables are anticipated to be collected.
Payables
Payables at September 30, 2003 were as follows:
Due From
Other
Interest Accounts Governments Total
$ 10,258 S 285,097 S 179,922 $ 475,277
5 - 293,801 293,806
- - 210,762 210,762
67,941 - - 67,941
17,776 - 65,379 83,155
$ 95,980 S 285,097 S 749,864 $ 1,130,941
$ 1 $ 114 $ - $ 115
- 27,526 139,480 167,006
S 1 $ 27,640 S 139,480 $ 167,121
Salaries
and
Vendors
Retainage
Benefits
Total
Governmental activities:
General
S 122,004
S - S
157,409
S
279,413
Discretionary sales tax
136
-
-
136
Capital improvements
249,527
-
-
249,527
Public facilities improvements
228,145
-
-
228,145
�e Other governmental
170,984
-
-
170,984
Total - governmental activities
S 770,796
S - S
157,409
$
928,205
w Business -type activities:
Golf course
S 11,963
$ - S
5,714
S
17,677
Airport
146,856
14,209
2,583
163,648
Total - business -type activities
S 158,819
$ 14,209 $
8,297
S
181,325
on
Governmental funds report deferred revenue in connection with receivables for revenues that arc not considered to be available to
In liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have
been received, but not yet earned. At September 30, 2003, the various components of deferred revenue and unearned revenue
reported in the governmental funds were as follows:
Unavailable Deferred
Special assessments not yet due (debt service fund) S 45,372 5
OR Occupational licenses received in advance (general fund) - 67,105
Total deferred/uneamed revenue for governmental funds S 45,372 S 67,105
No
OR
31
D. Capital Assets
Capital asset activity for the year ended September 30, 2003 was as follows:
Beginning
Balance Increases
Governmental activities:
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Total accumulated depreciation
Total capital assets, being depreciated, net
Governmental activities capital assets, net
Business -type activities:
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Total accumulated depreciation
Total capital assets, being depreciated, net
Business -type activities capital assets, net
Ending
Decreases Balance
5 4,488,173
S 165,430
$ -
$ 4,653,603
264,456
1,463,835
(94,130)
1,634,161
4,752,629
1,629,265
(94,130)
6,287,764
2,556,708
34,712
-
2,591,420
2,049,225
261,155
-
2,310,380
4,570,141
685,195
(205,773)
5,049,563
13,951,040
1,243,750
(173,409)
15,021,381
23,127,114
2,224,812
(379,182)
24,972,744
(1,066,638)
(70,246)
-
(1,136,884)
(676,618)
(101,040)
(777,658)
(2,540,557)
(568,881)
181,388
(2,928,050)
(5,853,167)
(495,132)
173,409
(6,174,890)
(10,136,980)
(1,235,299)
354,797
(11,017,482)
12,990,134
989,513
(24,385)
13,955,262
$ 17,742,763
S 2,618,778
S (118,515)
$ 20,243,026
Beginning
Ending
Balance
Increases
Decreases
Balance
S 9,060
S -
$
S 9,060
347,490
1,027,151
(32,217)
1,342,424
356,550
1,027,151
(32,217)
1,351,484
333,189
64,570
-
397,759
574,109
223,408
-
797,517
486,016
15,721
(2,215)
499,522
2,371,821
2,200
-
2,374,021
3,765,135
305,899
(2,215)
4,068,819
(250,553)
(11,157)
-
(261,710)
(116,371)
(40,893)
-
(157,264)
(310,260)
(59,386)
2,118
(367,528)
(917,046)
(108,560)
-
(1,025,606)
(1,594,230)
(219,996)
2,118
(1,812,108)
2,170,905
85,903
(97)
2,256,711
S 2,527,455
$ 1,113,054
S (32,314)
S 3,608,195
W
M
M
M
M
PM
P"
r"
M
L�
32
so
Depreciation expense was charged to functions/programs of the govemment as follows:
on
Govemmental activities:
General government
S 81,797
Public safety
243,777
Transportation
612,979
Physical environment
160,286
Cultural and recreation
136,460
Total depreciation expense -governmental activities
S 1,235,299
Business -type activities:
Golf Course
$ 124,800
OW
Airport
95,196
Total depreciation expense -business -type activities
S 219,996
•
Construction Commitments
The govemment has active construction projects as of September 30, 2003. The projects include realignment & reconstruction of
Louisiana Avenue, construction and renovation of the City Hall Municipal Complex and construction and rehabilitation of facilities
OR
at the Municipal Airport.
Remaining
Major
Proiect Spent -to date Commitment
Funding Source
Lousianna Avenue improvements S 86,486 $ 907,514
CDBG Grant
Public facility municipal complex 678,976 8,775,824
Revenue Bonds
Municipal airport improvements 1,961,765 5,712,034
FAAIFDOT Grant
Total $ 2,727,227 $ 15,395,372
am
E. Interfund Balances
Interfund balances at September 30, 2003 consisted of the following amount:
Due to General Fund from:
M Nonmajor govemmental funds:
G.R.E.A.T. Program Fund $ 8,748
Road Paving Fund 44,997
Total $ 53,745
The balance of $53,745 due to the general fund from the G.R.E.A.T. Program Fund and Road Paving Fund represents short-term cash
loans that will be repaid within the next twelve months.
00
F. Fund Eouitv Deficit
dn The following funds had a deficit in fund balance at September 30, 2003:
Fund Deficit
Riverfront Redevelopment $ 76,866
G.R.E.A.T. Program 92
Total $ 76,958
The deficit for the Riverfront Redevelopment Fund will be eliminated by cutting back expenditures in fiscal year 2004.
The deficit for the G.R.E.A.T. Program fund will be eliminated by reimbursement of grant funding in fiscal year 2004.
33
G. Interfund Transfers
r.
Transfers are used to 1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget
requires to expend them, 2) use unrestricted revenues collected in the General fund to finance various programs accounted for in
other funds in accordance with budgetary authorizations, and 3) use discretionary sales tax revenues for infrastructure improvements
and equipment purchases which must be accounted for in other funds. Following is a schedule of Interfund Transfers: ..
Transfers In
Capital
Nomrajor
General
Improvements
Governmental
Transfers Out:
Fund
Fund
Airport
Funds
Total
General fund
S -
S -
S 284,000
S -
S 284,000
Discretionary sales tax fund
370,919
335,000
250,000
1,254,646
2,210,565
Capital improvements fund
-
-
-
261,117
261,117
Nonmajor governmental funds
160,322
190,000
-
420,904
771,226
Total transfers out
S 531,241
$ 525,000
$ 534,000
S 1,936,667
$ 3,526,908
H. Leases
1. Ooeratine Leases -Lessee
The City is obligated under certain leases for land and golf carts accounted for as operating leases. Operating leases do not give rise
to property rights or lease obligations. Total costs for such leases were $172,250 for the fiscal year ended September 30, 2003. The
following is a schedule by years for future minimum rental payments required under operating leases in the Golf Course Proprietary
fund that have initial or remaining noncancelable lease terms in excess of one year as of September 30, 2003:
Year Endine September 30.
2004
2005
2006
2007
2008
2009.2013
2014-2015
Totals
2. Capital Leases -Lessee
Golf Course
Golf
to: Airport Carts
$ 120,000 S 52,250
120,000 52,250
175,000 52,250
175,000 107,989
175,000
1,100,000
500,000 -
$ 2,365,000 S 264,738
r
J
M
The government has entered into a lease agreement as lessee for financing the acquisition of heavy construction equipment for its n.
public works department. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded
at the present value of its future minimum lease payments as of the inception date.
The assets acquired through the capital lease are as follows:
Governmental
Activities
Asset:
Machinery and equipment S 859,859
Less: Accumulated depreciation (238,965)
Total 5 620,894
M
•%
912
r�
The future minimum lease obligations and the net present value of these minimum lease payments as of September 30, 2003 were as
follows:
am
Governmental
Year Ending September 30,
Activities
2004
$ 154,693
on 2005
154,693
2006
154,694
2007
154,694
2008
154,694
Total minimum lease payments
773,469
Less: amount representing interest
(100,940)
M Present value of minimum lease payments
$ 672,528
3. Ooeratine Leases -Lessor,
an The airport is the lessor of various properties (land with a cost basis of S9,060) with lease terms varying from twenty to thirty
years. Following is a schedule by year of minimum future rental income on noncancelable operating leases:
Year Ending September 30.
Amount
2004
S 162,029
2005
162,029
w 2006
217,029
2007
217,029
2008
217,029
2009-2013
1,310,144
2014-2018
680,677
2019-2023
94,209
2024-2028
80,109
2029-2030
32,044
Total minimum future rentals
S 3,172,329
I. Lone -term Obliv_ations
1. Revenue Bonds/Notes
on Revenue bonds/notes are secured by and payable from the revenues of the respective funds that issued them.
a. The City issued a ten (10) year, $527,993 Revenue Bond, Series 1996 for the purpose of financing the construction costs of
OR a waterline along the City's riverfront. The principal and interest are paid from special assessments received on an annual
basis. The City is obligated by a covenant to budget and appropriate in the event revenues collected and/or defaults occur
which are less than debt service requirements. Currently the City has $19,362 in default assessments. These funds are
accumulated in the Debt Service fund.
rw
In. The City entered into a fifteen (15) year loan agreement in 1998 with a local bank for $3,268,890 to provide financing to
repave certain roads in the City. The City pledged Local Option Gas Tax and Municipal Gas Tax to repay the note payable.
The funds are accumulated in the Local Option Gas Tax Special Revenue fund for repayment of principal and interest.
on c. The City issued ten (10) year, $2,435,000 Recreational Facilities Improvement and Refunding Revenue Bonds, Series 2001
in March 2001. The City has pledged Golf Course revenues along with a covenant to budget and appropriate for repayment
of principal and interest.
A
d The City issued a fifteen (15) year, $9,500,000 Infrastructure Sales Surtax Revenue Bonds, Series 2003 in April 2003. The
City has pledged Infrastructure Sales Surtax revenues for repayment of principal and interest.
ab 2. Bond Coverage
The City has covenanted in the Recreational Facilities Improvement and Refunding Revenue Bonds, Series 2001
Bond Resolution to fix, establish and maintain such rates, fees, rentals and other charges and collect such fees,
rates, rentals, and other charges for the product, services, facilities and use of its facilities, and revise the same from
On 35
time to time, whenever necessary, as will always provide in each fiscal year net revenues equal to at least one
hundred twenty-five percent (125%) of the annual debt service becoming due in such fiscal year. am
The following table indicates the degree of compliance with the bond resolution covenants in the Golf Course Fund
at September 30, 2003.
am
Gross revenues available for compliance
S 1,400,154
Opearting and maintenance
expenses (excluding depreciation expense)
1,088,052 00
Amount of revenue over
direct operating expenses
$ 312,102
Debt service requirement
$ 305,490
M
Percent coverage for the year
ended September 30, 2003
102%
In an effort to bring the revenues in line with the bond resolution covenants requirement, the City has implemented
a new rate structure starting October 1, 2003. City management continues to monitor the Golf Course operation and
intends to adjust rates whenever necessary to meet the bond coverage requirement.
r.r
3. Chances in Long-term Liabilities
The following is a summary of changes in Long -Term Liabilities of the City for the year ended September 30, 2003: 04
Beginning
Ending
Due within
Balance
Additions
Reductions
Balance
One Year
OR
Govemmental activities:
Bonds payable:
Special Assessment Bonds with
Governmental Commitment, Series 1996
$
134,299
$
-
$ 56,684
$
77,615
$ 59,944
prr
Infrastructure Sales Surtax Revenue
Bonds, Series 2003
-
9,500,000
-
9,500,000
485,000
Total bonds payable
134,299
9,500,000
56,684
9,577,615
544,944
nn
Notes payable
2,593,939
-
187,911
2,406,028
196,270
Capital leases
788,957
-
116,429
672,528
122,076
Compensated absences
525,832
602,675
370,062
758,445
46,666
Governmental activity
long-term liabilites
$
4,043,027
S
10,102,675
S 731,086
$
13,414,616
S 909,956
Business -type activities:
Bonds payable:
Recreational Facilities Improvement and
Refunding Revenue Bonds, Series 2001
S
2,335,000
$
-
S 220,000
$
2,115,000
S 230,000
r�
Less deferred amount:
Issuance premium
6,379
-
797
5.582
-
Loss on refunding
(66,576)
-
(8,322)
(58,254)
-
Total bands payable
2,274,803
-
212,475
2,062,328
230,000
1rq
Compensated absences
3,023
13,316
10,777
5,562
5,562
Business -type activity
long-term liabilites
S
2,277,826
S
13,316
$ 223,252
S
2,067,890
S 235,562
M
For the governmental activities, compensated
absences are generally
liquidated by the general fund.
OR
OM
am
36
4. Debt Service Reouirements to Maturity
The annual
requirement to amortize all bonded
debt outstanding
at September
30, 2003, including interest requirements,
is as
follows:
Governmental
Activities
Business -type Activities
Revenue
Roadway
Infrastructure
Golf
Bond
Improvement
Salessurtax
Course
Series
Note
Revenue
Refunding
1996
Payable
Bonds,
Bonds,
Year
5.75%
Interest 4,40%
Interest
Series 2003
Interest
Series 2001
Interest
A
2004
$ 59,944
$ 4,463 $ 196,270
$ 103,730
$ 485,000
S 306,168
$ 230,000
$ 80,890
2005
17,671
1,016 205,001
94,999
525,000
308,856
240,000
71,490
2006
-
- 214,120
85,880
535,000
298,356
250,000
61,690
2007
-
- 223,645
76,355
550,000
286,319
255,000
51,390
2008
-
- 233,594
66,406
565,000
269,819
270,000
41,090
2009-2013
-
- 1,333,398
166,603
3,115,000
1,064,736
870,000
54,935
2014-2018
-
- -
-
3,725,000
456,612
-
-
Less unamortized
Bond premium
-
- _
_
-
_
5,582
-
Loss on refunding
-
- -
-
-
-
(58,254)
-
$ 77,615
$ 5,479 $ 2,406,028
$ 593,973
$ 9,500,000
S 2,990,866
$ 2,062,328
$ 361,685
M
I. Restricted Assets:
Certain cash and claims to cash, that are legally restricted, have been shown as restricted in the statement of net assets as follows:
rrrr Govermental Business -type
Activities Activities
Debt service $ 348,091 $ 317,159
Road paving 117,868 -
City hall complex project 8,752,367 -
Renewal and replacement - 68,276
Rent - 120,000
on Cemetery perpetual care 431,038 -
Total $ 9,649,364 S 505,435
on V. OTHER INFORMATION
A. Prooerty Tax
OR
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, 2003, was 4.5904 mills. Total tax collections were approximately 95.2% of the total tax levy.
ON 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 liened on
property values as of January 1. The fiscal year for which taxes are levied begins October 1. Taxes are due November 1 and become
delinquent on April 1. All taxes unpaid as of May 30 are subject to a tax certificate sale. Property tax revenues are recognized in the
�+ fiscal year for which they are levied and also become due and payable.
B. Grants from Other Governmental Units
Federal, State and local government grants represent an important source of supplementary funding used to finance infrastructure,
recreation, law enforcement, and environmental activities beneficial to the community. These grants are recorded in the General,
Capital Project, and Enterprise funds. A grant receivable is recorded when the City has a right to reimbursement under the related
grant. The grants normally specify the purpose for which the funds may be used and are subject to audit by the grantor agency or its
representative. The following is the amount of grant revenue for fiscal year 2003.
M
37
r
Primary Government
Amount
Public safety
$ 97,240 r
General construction
221,828
Airport
1,129,258
Total reporting entity
$ 1,448,326
r
C. Police Pension Plan
r
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 report dated October I, 2000. 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.
r
Employee membership data as of the actuarial report for period ending October 1, 2002, dated December 29, 2003 is as follows:
Police Pension
Plan 2002
Retirees and beneficiaries currently r
receiving benefits 2
Terminated employees entitled to
refund of employee contribution r
but not yet received 0
Fully, partially, and non vested
active plan participants 29
Total 31
r
Benefit Provisions and Contribution Requirements. The Police Officers' Pension Plan provides retirement and disability benefits to
plan members and beneficiaries. This plan is administered by a separate local Board of Trustees. Chapter 185, Florida Statutes, as
amended governs all benefit provisions of the plan. Contribution requirements, in accordance with Chapter 185, Florida Statutes, are
established by City ordinance, as provided in Chapter 58, Article III of the Sebastian City Code. The City Council has the authority
to amend funding requirements.
Funding Policy. The employer, employee, and State contribution requirements are applicable to the Plan and actuarially determined
on a bi-annual basis in accordance with Florida State Statute. Administration costs of the pension plan are financed by the plan. The �+
employee contribution rate, expressed as a percentage of compensation, was 5.0% for the 2002-2003 fiscal year. The employer
contribution rate, expressed as a percentage of compensation, was 12.1% for the 2002-2003 fiscal year. A tax is levied on property
and casualty insurance premiums and collected by the State, which partially funds the Plan. The City is required to contribute the
remaining amounts to ensure that the Plan is actuarially sound. For fiscal year ended September 30, 2003, the City's contribution to
the plan was $153,111 and the State's contribution was $92,714.
Required trend information for the Police Officers' Pension Plan was as follows:
Amount
Actuariallv Determined Contribution
2000 S 0
2001 S 12,094 r
2002 S 0
Percentage of APC contributed
2000 100.00% r
2001 241.00%
2002 100.00%
Since the employer contribution exceeded the annual pension costs, there is no net pension obligation for the plan. r
The annual required contribution for the Police Officers' Pension Plan was determined as part of the October I, 2000, actuarial
valuation using the aggregate actuarial cost method. This method does not identify or separately amortize unfunded actuarial accrued
liabilities. The actuarial assumptions included (a) an 8.0% rate of return (net of administrative costs) and (b) projected salary r
increases of 6% per year, including inflation at 3%. There is no unfunded actuarial accrued liability as of September30, 2003.
Reserves. All of the net assets of the Police Pension Plan are legally reserved for plan participant benefits.
Basis of Accounting. Financial statements are prepared using the accrual basis of accounting. Plan member contributions are ON
recognized in the period in which the contributions are due. Employer contributions are recognized when due, and the employer has
r
38
ON
made formal commitment to provide the contributions. Benefits and refunds are recognized when due and payable in accordance
with the terms of the plan.
Method Used to Value Investments and Concentration oflnvesbnents. Investments are reported at fair value. Short-term investments
are reported at cost, which approximates fair value. Securities traded on a national or international exchange are valued at the last
reported sales price at current exchange rates. Mortgages are valued on the basis of future principal and interest payments, and are
.+
discounted at prevailing interest rates for similar instruments. Investments that do not have an established market are reported at
estimated fair value. Investments in securities of a single organization (excluding mutual funds and those issued or guaranteed by the
U.S. government) held by the pension plan did not exceed five percent of the total plan assets.
Development of Nct Pension Obligation (NPO)
This municipal Defined Benefit Plan has been subject to the minimum funding standards since the adoption of the "Florida Protection
of Public Employee Retirement Benefit Act" (Part VII of Chapter 112, Florida Statutes) in 1980. Accordingly, the sponsor has
funded the actuarially determined required contributions for all years from October 1, 1987, through the transition date, October 1,
1997. "thus, the NPO on October 1, 1997, is $0.
The development of the Net Pension Obligation as of September 30, 2002 is as follows:
9/30/2000 9/30/2001 9/30/2002
Actuarially Determined Contribution (A) $ - $ 12,094 $ -
interest on NPO (4,818) (6,981) (8,268)
Adjustment to (A) 5,479 7,939 9,402
Annual Pension Cost 661 13,052 1,134
Contributions made 27,704 29,134 8,620
Increase in NPO (27,043) (16,082) (7,486)
NPO beginning of year (60,221) (87,264) (103,346)
NPO end of year $ (87,264) $ (103,346) $ (110,832)
D. Insurance
The City is exposed to various risks of loss related to torts; theft of or damage to and destruction of assets; errors and omissions; and
wrt 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 and airport fund. Settled claims have not exceeded this commercial
coverage in the past three fiscal years.
E. Subseauent Events
1. Bonded Debt
r
On November I, 2003, the City issued $5,630,000 Stormwater Utility Revenue Bonds, Series 2003. The proceeds are to be used
to fund capital projects approved by the City Council in accordance with the Stormwater Master Plan, pursuant to Florida
Statutes and bond issuance costs. The City has pledged stormwater utility assessment revenues for repayment of principal and
interest.
On December 1, 2003, the City issued $2,125,000 Infrastructure Sales Surtax Revenue Bonds, Series 2003A.The proceeds are
to be used to fund the city hall complex project and bond issuance costs. The City has pledged Infrastructure Sales Surtax
ON revenues for repayment of principal and interest.
00
:J
so
39
City of Sebastian, Florida
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
General Fund
For the Year Ended September 30, 2003
Budget Amounts
Original Final
REVENUES
Taxes:
Property $
2,700,736
$2,763,736
Public utility
1,623,978
1,678,636
Franchise fees
642,268
642,268
Licenses and permits
558,848
596,825
Intergovernmental
1,708,857
1,718,857
Charges for services
252,243
275,219
Fines
130,927
136,927
Interest
94,672
94,672
Contributions and donations
24,300
25,300
Other revenue
44,777
48,377
Total revenues
7,781,606
7,980,817
EXPENDITURES:
Current:
General government
1,996,996
2,185,980
Public safety
3,669,094
3,768,598
Physical environment
1,170,656
1,297,170
Transportation
1,195,589
1,206,810
Culture and recreation
727,635
721,616
Total expenditures
8,759,970
9,180,174
Excess (deficiency) of revenues
over (under) expenditures
(978,364)
(1,199,357)
OTHER FINANCING
SOURCES (USES)
Transfers in
471.122
531,241
Transfers out
(284,000)
(284,000)
Total other financing sources (uses)
187,122
247,241
Net changes in fund balances
(791,242)
(952,116)
Fund balances - beginning
3,922,747
3,922,747
Fund balances - ending $
3,131,505 $
2,970,631
Explanation of differences:
Encumbrances for equipment and supplies ordered
but not received are reported in the year
the orders are placed for budgetary purposes, but
are reported in the year the
equipment
and supplies are received for GAAP purposes.
Amount reported as ending fund balance in the statement of revenues, expenditures
and
changes in fund balance for the General fund.
Actual
Variance with
Amounts on
Final Budget -
a Budgetary
Positive
Basis
(Negative)
2,752,423
1,780,717
756,194
878,097
1,730,489
129,101
116,752
81,708
20,725
62,478
8,308,684
2,103,588
3,675,631
1,067,187
1,267,419
677,396
8,791,220
(482,536)
531,241
(284,000)
247,241
(235,295)
3,922,747
3,697,452
194,398
$ 3,881,850
The accompanying notes to required supplementary information are an integral part of this schedule.
40
$ (11,313)
102,081
113,926
281,272
11,632
(146,118)
(20,175)
(12,964)
(4,575)
14,101
327,867
82,392
92,967
229,983
(60,608)
44,220
388,954
716,821
OR
IM
716,821
$ 716,821
A
^
City of Sebastian, Florida
Schedule of Revenue, Expenditures, and Changes in Fund Balances - Budget and Actual
^ Discretionary Sales Tax Special Revenue Fund
For the Year Ended September 30, 2003
Actual
Variance with
^
Budget Amounts
Amounts on
Final Budget -
a Budgetary
Positive
Original
Final
Basis
(Negative)
^ REVENUES:
Taxes:
Sales
$ 1,946,217
$ 1,946,217
$ 1,925,205
$ (21,012)
of Interest
29,609
29,609
25,429
(4,180)
Total revenues
1,975,826
1,975,826
1,950,634
(25,192)
^ OTBER FINANCING USES
Transfers out
(1,975,826)
(2,210,565)
(2,210,565)
Net changes in fund balances
-
(234,739)
(259,931)
(25,192)
^ Fundbalances- beginning
590,587
590,587
590,587
-
Fund balances - ending
$ 590,587
$ 355,848
$ 330,656
$ (25,192)
^
^
M
on
The accompanying notes to required supplementary information are an integral part of this schedule.
^
so
CITY OF SEBASTIAN, FLORIDA
Notes to the Required Supplementary Information — Budget Comparisons
September 30, 2003
A. Budgetary Basis
Annual budgets are adopted for all governmental funds except the capital project funds, which are
approved on a "life of the project basis", and the permanent fund, which is not budgeted. Since all
accounting principles applied for purposes of developing data on a budgetary basis differ significantly
from those used to present financial statements in confomuty, with U.S. generally accepted accounting
principles, a reconciliation of the resultant timing differences has been provided on page 40. All
annual appropriations lapse at year-end.
B. Buduetary Information
The appropriated budget is prepared by fund, function, and department. The government's department
heads, with the manager's approval, may make transfers of appropriations within a department or
division. Transfers of appropriations between departments and/or divisions require approval of the
council. The legal level of budgetary control (i.e., the level at which expenditures may not legally
exceed appropriations) is the department level. The council made three supplementary budgetary r
appropriations throughout the year. The 1" quarter budget amendment included an appropriation of
$197,131, carried over into and paid in the current fiscal year. The 3`d quarter budget amendment
highlighted a net increase in general fund expenditures of $47,007 for the Stormwater division to
pursue professional services to convert the canal system to wet detention and assistance with public
education efforts associated with the Stormwater Master Plan, and $50,000 for a marketing consulting
firm for the City of Sebastian. Other supplemental budgetary appropriations made in the general fund
were not material. �.
C. Budgeted and Actual Exnenditures Exceeded Revenues,
Budgeted and actual expenditures exceeded revenues in the General Fund and Discretionary Sales Tax
Special Revenue Fund. However, this is pursuant to the legally adopted budget to expend available
fund equity (cash carry forward) and does not constitute a deficit.
No
t=
r
A
go
l-3
42 a"
A
REOUIRED SUPPLEMENTARY INFORMATION
on
M
n.
Police Officers' Pension Plan
Governmental Accounting Standards Board Statements No. 25 and 27, Financial RenortinL for Defined Benefit
Pension Plans and Note Disclosures for Defined Contribution Plans and Accounting for Pensions by State and Local
Governmental Emnlovers require supplementary information be reported on the local pension plans in addition to
that provided in the Notes to the Financial Statements. This information is presented in the following schedules:
SCHEDULE OF CONTRIBUTIONS FROM THE EMPLOYER
AND OTHER CONTRIBUTING ENTITIES
LAST SIX FISCAL YEARS
Annual
Fiscal
Required
City
Year
Contributions
Contribution
2002
61,342
8,620
2001
80,740
29,134
2000
68,954
27,704
1999
129,435
103,548
1998
102,215
96,039
1997
121,571
90,798
State
Percentage
Contribution
Contributed
82,877
149.16%
68,646
121.10%
112,773
203.73%
46,790
116.15%
39,753
132.85%
36,089
104.37%
The information presented in the required supplementary schedules was determined as part of the actuarial evaluation
at the date indicated. Additional information as of the latest actuarial valuation is as follows:
�.
Contribution rates as of 9/30/02
City
0.0%
Plan Members
5.0%
Annual pension cost
$ 1,134
Contributions made
$ 8,620
Valuation date
10/1/2000
Actuarial cost method
Aggregate
r.
Amortization method
N/A
Remaining amortization period
N/A
Asset valuation method
Market Value
Actuarial return assumptions
Investment rate of return
8.0%
am
Projected salary increase*
6.0%u
* Includes inflation at
3.0%
Post Retirement COLA
0.0%
r�
^r
43
M
Nonmajor Governmental Funds
Special Revenue Funds
Special revenue funds are used to account for specific revenues that are legally restricted to expenditures for
particular purposes. M
Local Option Gas Tax Fund — This fund is used to account for the government's share of motor fuel tax revenues
that are legally restricted to transportation related expenditures within the government's boundaries. ..
Riverfront Redevelopment Fund — This fund is used to account for tax increment revenues that are legally
restricted for the redevelopment of the City's riverfront area.
Recreation Impact Fee Fund — This fund is used to account for recreation impact fees that are restricted for use in
the expansion or construction of recreational facilities.
r�
Stormwater Utility Fee Fund — This fund is used to account for fees collected on a per unit basis that are restricted
for the purposes of managing the City's Stormwater system.
Law Enforcement Forfeiture Fund — This fund is used to account for the receipt of forfeited cash and equipment
associated with police activities and is restricted to police related equipment purchases and community education
initiatives.
G.R.E.A.T. Program Fund — This fund is used to account for a federal law enforcement grant to be used for gang
resistance, education and training for school children from grade school through middle school.
Debt Service Fund
Special Assessment Revenue Bonds Debt Service Fund — This fund is used to account for the receipt of special
assessments and the associated repayment of debt.
Discretionary Sales Surtax Revenue Bonds Debt Service Fund — This fund is used to account for the accumulation
of discretionary sales tax monies pledged to pay the principal, interest, and fiscal charges on the Discretionary
Sales Surtax Revenue bonds.
Capital Projects Funds
Capital projects funds are used to account for the acquisition and construction of major capital facilities other than
those financed by proprietary funds.
General Capital Projects Fund — This fund is used to account for the construction of non-stormwater related
improvements and general capital construction projects. Governmental resources and State grant revenues are
used to finance the improvements in this fund.
Transportation Improvements Fund — This fund is used to account for transportation related construction such as, ..
roads, intersections, and sidewalks and are funded with governmental resources, impact fees and State grants.
Road Paving Program Fund — This fund accounts for the resources associated with debt for the purposes of
reconstructing and paving roads.
oft
44 i.
ow
Stormwater Improvements Fund — This fund is used to account for the construction of stormwater related
improvements. Stormwater utility Revenue Bonds, Series 2003 and stormwater assessment fees are used to
finance the improvements in this fund.
Permanent Fund
Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not
principal, may be used for purposes that support the reporting government's programs.
^, Cemetery Permanent Fund — This fund is used to account for principal trust amounts received, sale of cemetery
lots and related interest income. One-half of the cemetery lot sales and the interest portion of the trust can be used
to maintain the community cemetery.
w
on
w
OR
w
me
J
on
w
No
M
ON
City of Sebastian, Florida
Combining Balance Sheet
Nonmajor Governmental Funds ON
September 30, 2003
.,
M
Special Revenue Funds
Local
Law
Option
Riverfront
Recreation
Stormwater
Enforcement
G.R.E.A.T.
Gas Tax
Redevelopment
Impact Fee
Utility
Forfeiture
Program
ASSETS
nn
Cash and cash equivalents
$
23,619
S
6,324
S -
S 8,567
S 11,424
S 767
Investments
164,686
91,744
469,762
1,289,972
-
_
Special assessments receivable
_
_
_
_
_
_
..,
Due from other governments
57,456
-
-
-
7,923
Interest receivable
4
-
1,918
10,976
-
_
Prepaid items
_
_
_
_
_
_
Total assets
S
245,765
$
98,068
S 471,680
S 1,309,515
S 11,424
S 8,690
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
S
4,618
S
66,934
S -
$ 252
S 3,192
S 34
Interest payable
_
_
_
_
_
_
Due to other funds
_
_
_
_
_
8,748
Advance from other funds
-
108.,000
-
-
_
_
.�
Deferred revenues
_
_
_
-
_
_
Total liabilities
4,618
174,934
-
252
3,192
8,782
Fund balances:
Reserved for:
am
Encumbrances
645
63,650
-
-
-
_
Debt service
Cemetery care
-
-
_
-
_
_
Law enforcement
_
_
_
_
8,232
(92)
Unreserved
240,502
(140,516)
47I,680
1,309,263
-
_
Total fund balances
241,147
(76,866)
471,680
1,309,263
8,232
(92)
Total liabilities and fund balances
$
245,765
S
98,068
S 471,680
$ 1,309,515
$ 11,424
S 8,690
46 M
Debt Service Funds
Capital Projects
Funds
Special
Discretionary
.�
Assessment
Sales Surtax
General
Revenue
Revenue
Capital
Transportation
Road
Stormwater
Total
Bonds 1996
Bonds 2003
Total
Projects
Improvements
Paving
Improvement!
Total
r
$
50,701
S 5,569
$ 9,901 $
15,470
$ 935
S 157,505
$ -
$
18,078
$ 176,518
-
2,016,164
90,380
242,241
332,621
210,227
808,471
117,868
10,011
1,146,577
-
45,372
-
45,372
-
-
_
_
_
65,379
-
-
-
-
12,898
-
-
-
r
-
-
146,890
146,890
-
-
-
_
_
$
2,145,142
$ 141,321
$ 399,032 $
540,353
$ 211,162
S 965,976
S 117,868
S
28,089
$ 1,323,095
n.
r
S
75,030
S 4
$ 4
8
S 4,105
S 53,771
S 29,702
S
8,296
$ 95,874
-
-
6,194
6,194
-
-
_
_
-
8,748
-
-
-
-
-
44,997
-
44,997
r
108,000
-
-
-
-
_
_
_
-
-
45,372
-
45,372
-
-
-
_
-
191,778
45,376
6,198
51,574
4,105
53,771
74,699
8,296
140,871
64,295
-
-
-
-
145,153
-
-
145,153
-
95,945
392,834
488,779
-
-
-
_
_
8,140
-
-
-
-
_
_
_
-
1,880,929
-
-
-
207,057
767,052
43,169
19,793
1,037,071
OR
1,953,364
95,945
392,834
488,779
207,057
912,205
43,169
19,793
1,182,224
/r
S
2,145,142
$ 141,321
S 399,032 S
540,353
S 211,162
$ 965,976
$ 117,868
$
28,089
S 1,323,095
r
r
47
r
City of Sebastian, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2003
(Continued)
Permanent
Fund
Total
Other
Governmental
Cemetery
Funds
ASSETS
Cash and cash equivalents
S
5,436
S 248,125
Investments
453,160
3,948,522
Special assessments receivable
-
45,372
Due from other governments
-
65,379
Interest receivable
4,878
17,776
Prepaid items
-
146,890
Total assets
S
463,474
S 4,472,064
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
S
72
S 170,984
Interest payable
-
6,194
Due to other funds
-
53,745
Advance from other funds
-
108,000
Deferred revenues
-
45,372
Total liabilities
72
384,295
Fund balances:
Reserved for:
Encumbrances
-
209,448
Debt service
-
488,779
Cemetery care
463,402
463,402
Law enforcement
-
8,140
Unreserved
-
2,918,000
Total fund balances
463,402
4,087,769
Total liabilities and fund balances
s
463,474
S 4,472,064
m
CITY OF
HOME OF PELICAN ISLAND
THIS PAGE INTENTIONALLY LEFT BLANK
49
City of Sebastian, Florida
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2003
REVENUES:
Taxes:
Property
Motor fuel
Intergovernmental
Impact fees
Charges for services
Fines
Special assessments
Interest
Contributions and donations
Other revenue
Total revenues
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Debt Service:
Principal
Interest
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING
SOURCES (USES)
Transfers in
Transfers out
Debt proceeds
Total other financing sources (uses)
Net changes in fund balances
Fund balances - beginning
Fund balances - ending
Special Revenue Funds
Local
Law
~
Option
Riverfront
Recreation
Stormwater
Enforcement
G.R.E.A.T.
Gas Tax
Redevelopment
Impact Fee
Utility
Forfeiture
Program
so
S -
S 192,033
S
$
S
S
675,554
-
-
_
_
1,755
-
-
-
-
8,704
-
-
395,850
-
-
_
-
728,393
-
-
-
-
3,000
_
10,763
2,029
7,375
24,526
-
_
-
-
-
-
6,110
191
-
-
-
-
774
-
688,072
194,062
403,225
752,919
9,884
8,895
on
M
-
-
-
-
19,580
9,529
-
8,988
-
-
M
250,282
-
-
166,024
187,911
-
112,089
550,282
166,024
-
8,988
19,580
9,529
am
137,790
28,038
403,225
743,931
(9,696)
(634)
00
(150,000)
(130,444)
(190,000)
(155,482)
(150,000)
(130,444)
(190,000)
(155,482)
-
_
(12,210)
(102,406)
213,225
588,449
(9,696)
(634)
253,357
25,540
258,455
720,814
17,928
542
M
S 241,147
S (76,866)
S 471,680
S 1,309,263
S 8,232
S (92)
50 rt
--
Debt Service Funds
Capital Projects
Funds
Special
Discretionary
Assessment
Sales Surtax
General
Revenue
Revenue
Capital
Transportation
Road
Stormwater
-
Total
Bonds 1996
Bonds 2003
Total
Projects
Improvements Paving
Improvements
Total
-
$ 192,033
S -
$ - $
-
$ -
S
675,554
-
10,459
-
_
395,850
-
728,393
-
3,000
-
-
22,560
-
22,560
44,693
5,956
768
6,724
-
-
5,216
II
5,227
6,301
-
-
774
-
-
_
_
-
_
_
_
^.
2,057,057
28,516
768
29,284
5,216
11
5,227
ON
-
169
-
169
-
-
29,109
-
-
-
_
_
_
_
-
8,988
-
293,324
293,324
-
-
-
10,160
10,160
250,282
-
-
-
-
200,281
-
-
200,281
166,024
-
-
_
_
_
187,911
56,684
-
56,684
116,429
-
-
-
116,429
112,089
7,689
-
7,689
38,265
-
-
-
38,265
-
-
-
-
217,324
907,410
462,130
33,655
1,620,519
_
754,403
64,542
293,324
357,866
372,018
1,107,691
462,130
43,815
1,985,654
1,302,654
(36,026)
(292,556)
(328,582)
(372,018)
(1,107,691)
(456,914)
(43,804)
(1,980,427)
n
-
-
389,390
389,390
274,632
1,209,048
-
63,597
1,547,277
(625,926)
-
-
-
-
-
(90,000)
(90,000)
-
-
296,000
296,000
-
(625,926)
-
685,390
685,390
274,632
1,209,048
(90,000)
63,597
1,457,277
676,728
(36,026)
392,834
356,808
(97,386)
101,357
(546,914)
19,793
(523,150)
OR
1,276,636
131,971
-
131,971
304,443
810,848
590,083
-
1,705,374
$ 1,953,364
S 95,945
S 392,834 S
488,779
$ 207,057
S 912.205
$ 43,169
$ 19,793 S
1,182,224
we
51
•
City of Sebastian, Florida
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
•
For the Year Ended September 30, 2003
(Continued)
Permanent
Fund
Total
Other
•
Governmental
Cemetery
Funds
REVENUES:
•
Taxes:
Property
$ -
$ 192,033
Motor fuel
-
675,554
Intergovernmental
-
10,459
Impact fees
-
395,850
Charges for services
63,625
792,018
Fines
3,000
•
Special assessments
-
22,560
Interest
9,638
66,282
Contributions and donations
-
6,301
•
Other revenue
-
774
Total revenues
73,263
2,164,831
in
EXPENDITURES:
Current:
go
General government
-
169
Public safety
-
29,109
Physical environment
500
312,972
to
Transportation
-
450,563
Economic environment
-
166,024
Debt Service:
Principal
-
361,024
•
Interest
-
158,043
Capital outlay
-
1,620,519
•
Total expenditures
500
3,098,423
Excess (deficiency) of revenues
•
over (under) expenditures
72,763
(933,592)
OTHER FINANCING
on
SOURCES (USES)
Transfers in
-
1,936,667
Transfers out
(55,300)
(771,226)
•
Debt proceeds
-
296,000
Total other financing sources (uses)
(55,300)
1,461,441
Net changes in fund balances
17,463
527,849
Fund balances - beginning
445,939
3,559,920
•
Fund balances - ending
S 463,402
$ 4,087,769
•
52
r,
A
M
M
City of Sebastian, Florida
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Local Option Gas Tax Special Revenue Fund
For the Year Ended September 30, 2003
REVENUES:
Motor fuel taxes
Intergovernmental
Interest
Total revenues
EXPENDITURES:
Current:
Transportation
Debt service:
Principal
Interest
Total expenditures
Excess of revenues over expenditures
OTHER FINANCING USES
Transfers out
Net changes in fund balances
Fund balances - beginning
Fund balances - ending
Actual
Varia nee with
Amounts on
Final Budget -
Final a Budgetary
Positive
Budget Basis
(Negative)
$ 665,457 $ 675,554 $
- 1,755
11,947 10,763
677,404 688,072
10,097
1,755
(1,184)
10,668
259,243
250,282
8,961
187,911
187,911
-
112,089
112,089
-
559,243
550,282
8,961
118,161
137,790
19,629
(150,000)
(150,000)
-
(31,839)
(12,210)
19,629
253,357
253,357
-
$ 221,518 $
241,147 $
19,629
M 53
City of Sebastian, Florida
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Riverfront Redevelopment Special Revenue Fund
For the Year Ended September 30, 2003
REVENUES:
Tax increment
Interest
Total revenues
EXPENDITURES:
Current:
Economic environment
Total expenditures
Excess (deficiency) of revenues over
(under) expenditures
oTHER FINANCING USES
Transfers out
Net changes in fund balances
Fund balances - beginning
Fund balances - ending
Actual
Variancewith
Amounts on
Final Budget -
Final
a Budgetary
Positive
Budget
Basis
(Negative)
$ 192,033
$ 192,033
$ -
2,664
2,029
(635)
194,697
194,062
(635)
190,470
166,024
24,446
190,470
166,024
24,446
4,227
28,038
23,811
(130,444)
(130,444)
-
(126,217)
(102,406)
23,811
25,540.
25,540
-
$ (100,677) $
(76,866) $
23,811
54
City of Sebastian, Florida
Schedule of Revenues,
Expenditures, and Changes in Fund Balances - Budget
and Actual
Recreation Impact Fee Special Revenue Fund
-
For the Year Ended September 30, 2003
Actual
Variance with
Amounts an
Final Budget -
+�
Final a Budgetary
Positive
--
Budget Basis
(Negative)
REVENUES:
M
Impact fees
$ 283,178 $ 395,850
$ 112,672
Interest
2,740 7,375
4,635
Total revenues
285,918 403,225
117,307
OTHER FINANCING USES
Transfers out
(190,000) (190,000)
-
Net changes in fund balances
95,918 213,225
117,307
No
Fund balances - beginning
258,455 258,455
-
Fund balances - ending
$ 354,373 $ 471,680
$ 117,307
M
City of Sebastian, Florida
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget
and Actual
Stormwater Utility Special Revenue Fund
For the Year Ended September 30, 2003
Actual
Variance with
_
Amounts on
Final Budget -
Final a Budgetary
Positive
so
Budget Basis
(Negative)
REVENUES:
Charges for services
$ 726,610 $ 728,393
$ 1,783
Interest
10,964 24,526
13,562
Total revenues
737,574 752,919
15,345
EXPENDITURES:
Current:
Physical environment
5,000 8,988
(3,988)
Total expenditures
5,000 8,988
(3,988)
Excess of revenues over expenditures 732,574 743,931
11,357
OTHER FINANCING USES
-
Transfers out
(155,482) (155,482)
-
Total other financing uses
(155,482) (155,482)
-
Net changes in fund balances
577,092 588,449
11,357
Fund balances - beginning
720,814 720,814
-
Fund balances -ending
$ 1,297,906 $ 1,309,263
$ 11,357
55
..
City of Sebastian, Florida
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Law Enforcement Forfeiture Special Revenue Fund
For the Year Ended September 30, 2003
Actual Variance with
Amounts on Final Budget -
Final aBudgetary Positive
Budget Basis (Negative)
REVENUES:
Fines
Contributions
Miscellaneous
Total revenues
EXPENDITURES:
Current:
Public safety
Total expenditures
Deficiency of revenues under expenditures
Fund balances - beginning
Fund balances - ending
$ 2,000 $
3,000 $
1,000
4,000
6,110
2,110
101
774
673
6,101
9,884
3,783
8,800
19,580
(10,780)
8,800
19,580
(10,780)
(2,699)
(9,696)
(6,997)
17,928
17,928
_
$ 15,229 $
8,232 $
(6,997)
City of Sebastian, Florida
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
G.R.E.A.T. Program Special Revenue Fund
Actual
Variance with
Amounts on
Final Budget -
Final
a Budgetary
Positive
Budget
Basis
(Negative)
REVENUES:
Intergovernmental
$ 10,674 $
8,704
$ (1,970)
Interest
50
-
(50)
Contributions
200
191
(9)
Total revenues
10,924
8,895
EXPENDITURES:
Current:
Public safety
10,924
9,529
1,395
Total expenditures
10,924
9,529
1,395
Deficiency of revenues under expenditures
-
(634)
(634)
Fund balances - beginning
542
542
-
Fund balances - ending
$ 542 $
(92)
$ (634)
56
.,
City of Sebastian, Florida
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
^ Special Assessment Revenue Bonds 1996
For the Year Ended September 30, 2003
^
r
^
REVENUES:
Special assessments
Interest and other revenues
Total revenues
EXPENDITURES:
Current:
General government
Debt service:
Principal
Interest
Total expenditures
Deficiency of revenues under expenditures
Fund balances - beginning
Fund balances - ending
Actual
Variance with
Amounts on
FinalBudget-
Final
a Budgetary
Positive
Budget
Basis
(Negative)
$ 18,452
S 22,560
$ 4,108
5,374
5,956
582
23,826
28,516
4,690
210
169
41
56,684
56,684
-
7,722
7,689
33
64,616
64,542
74
(40,790)
(36,026)
4,764
131,971
131,971
-
$ 91,181 $
95,945 $
4,764
M 57
City of Sebastian, Florida
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Discretionary Sales Surtax Revenue Bonds 2003
For the Year Ended September 30, 2003
Actual Variancewith
Amounts on Final Budget -
Final a Budgetary Positive
Budget Basis (Negative)
REVENUES:
Interest and other revenues S 500 S 769 S 269
Total revenues 500 768 268
EXPENDITURES:
Current:
Physical environment
Total expenditures
Deficiency of revenues under expenditures
OTHER FINANCING SOURCES
Transfers in
Debt proceeds
Total other financing sources
Net changes in fund balances
Fund balances - beginning
Fund balances - ending
296,001
293,324
2,677
296,001
293,324
2,677
(295,501)
(292,556)
2,945
389,390
389,390
-
302,195
296,000
(6,195)
691,585
685,390
(6,195)
396,084
392,834
(3,250)
$ 396,084 S 392,834 S (3,250)
M
M
9M
pa
ra
ow
M
W
r�
City of Sebastian, Florida
Statement of Changes in Assets and Liabilities
Agency Fund
For the Year Ended. September 30, 2003
ASSETS
Cash and cash equivalents
Total assets
LIABILITIES
Accounts payable
Deposits refunds payable
Performance deposits held in escrow
Total liabilities
Balance Balance
October 1, September 30,
2002 Additions Deletions 2003
$ 4,182 $ 4,790 $ 6,220 $ 2,752
$ 4,182 $ 4,790 $ 6,220 $ 2,752
$ - $ 5,970 $ 5,720 $ 250
392 - - 392
3,790 240 1,920 2,110
$ 4,182 $ 6,210 $ 7,640 $ 2,752
W
City of Sebastian, Florida
..
Capital Assets Used in the Operation of Governmental
Funds
Comparative Schedule By Source
September 30, 2003
Governmental Funds capital assets:
FY 2002
FY 2003
s.
Land $
4,488,173
$
4,653,603
Buildings and structures
2,556,708
2,591,420
Improvement other than buildings
2,049,225
2,310,380
^
Machinery and equipment
4,570,141
5,049,563
Infrastructure
13,951,040
15,021,381
..
Capital projects
264,456
1,634,161
Total capital assets $
27,879,743
$
31,260,508
Investment in governmental Funds capital assets by sources:
^
Federal grants $
903,074
$
903,074
State grants
815,810
868,172
County grants
712,211
712,211
General fund
10,375,381
10,727,762
Law enforcement trust fund
47,579
57,174
Cemetery trust fund
147,613
186,395
Donations
2,336,142
2,332,158
Sales taxes
5,115,444
6,418,349
..
Motor fuel taxes
4,331,554
4,158,145
Revenue bond debt
2,830,479
3,262,907
Capital projects
264,456
1,634,161
Total investment in capital assets $
27,879,743
S
31,260,508
^
M
^
•1
^
City of Sebastian, Florida
•
Capital Assets
Used in the
Operation of Governmental Funds
Schedule by Function and Activity
September 30, 2003
Improvements
Machinery
•
Other than
and
Function and Activity
Land
Buildings
Buildings
Equipment
Infrastructure
Totals
•
General government:
Legislative
S
S
S 1,100
S 17,393
S -
$ 18,493
City manager
-
22,075
-
22,075
City clerk
-
72,705
-
72,705
City attorney
-
2,114
-
2,114
Finance
-
61,676
-
61,676
n
MIS
-
72,731
-
72,731
Human resources
-
5,820
-
5,820
Growth management
84,426
-
37,450
-
121,876
•
Building department
-
15,183
-
78,041
-
93,224
Non -departmental
2,662,551
642,392
50,026
176,731
-
3,531,700
Subtotal
2,662,551
742,001
51,126
546,736
-
4,002,414
Public safety:
Administration
9,560
887,852
61,682
300,425
-
1,259,519
'9
School resource
-
-
-
47,817
-
47,817
Road patrol
-
-
-
806,022
-
806,022
Community policing
-
-
-
109,074
-
109,074
Code enforcement
-
-
-
35,585
-
35,585
Investigations
-
7,774
-
112,796
-
120,570
Support services
-
-
-
52,102
-
52,102
Communications
-
-
-
77,211
-
77,211
Subtotal
9,560
895,626
61,682
1,541,032
-
2,507,900
•
Transportation:
Engineering
-
145,201
96,493
139,416
-
381,110
Central garage
-
111,654
90,048
94,843
-
296,545
Roads and drainage
-
98,248
612.536
930,689
13,916,886
15,558,359
Subtotal
-
355,103
799,077
1,164,948
13,916,886
16,236,014
•
Physical Environment:
Stormwater
-
-
-
1,338,506
129,282
1,467,788
Building maintenance
33,971
289,713
16,116
62,271
50,669
452,740
Cemetery
272,190
47,519
78,354
31,741
21,473
451,277
Subtotal
306,161
337,232
94,470
1,432,518
201,424
2,371,805
•
Culture/Recreation:
Parks and recreation
1,675,331
261,458
1,304,025
364,329
903,071
4,508,214
Subtotal
1,675,331
261,458
1,304,025
364,329
903,071
4,508,214
Total
S 4,653,603
S 2,591,420
S 2,310,380
S 5,049,563
S15,021,381
S 29,626,347
Construction in progress
1,634,161
Total
S 31,260,508
• 61
Function and Activity
General government:
Legislative
City manager
City clerk
City attorney
Finance
MIS
Human resources
Growth management
Building department
Non -departmental
Subtotal
Public Saftey:
Administration
School resource
Road patrol
Community policing
Code enforcement
Investigations
Support services
Communications
Subtotal
Transportation:
Engineering
Central garage
Roads and drainage
Subtotal
Physical Environment:
Stormwater
Building maintenance
Cemetery
Subtotal
Culture & Recreation:
Parks and recreation
Subtotal
Total
Construction in progress
Total
City of Sebastian, Florida
Capital Assets Used
in the Operation
of Governmental
Funds
Schedule
of Changes By
Function
and Activity
September
30, 2003
.,
Governmental
Governmental
Funds
Funds
Capital Assets
Transfers
Transfers
Capital Assets
October 1, 2002
Additions Deletions
In
Out
September 30, 2003
S 15,293 S
3,200 S
-
5
S -
S 18,493
21,790
1,515
-
-
1,230
22,075
86,790
5,736
-
-
19,821
72,705
1,199
1,515
-
-
600
2,114
103,110
1,515
-
-
42,949
61,676
-
9,395
-
63,336
-
72,731
6,370
1,515
-
-
2,065
5,820
133,271
-
-
-
11,395
121,876
94,125
1,515
-
-
2,416
93,224
3,190,009
366,473
72,132
49,810
2,460
3,531,700
3,651,957
392,379
72,132
113,146
82,936
4,002,414
_
1,807,426
-
29,616
1,139
519,430
1,259,519
1,526
1,000
-
45,291
-
47,817
366,750
184,944
16,069
294,656
24,259
806,022
10,025
1,847
29,675
129,051
2,174
109,074
35,585
-
-
-
-
35,585
rq
51,791
13,282
-
65,744
10,247
120,570
851
49,175
-
2,076
-
52,102
27,497
49,432
-
7,931
7,649
77,211
2,301,451
299,680
75,360
545,888
563,759
2,507,900
386,307
2,643
-
18,015
25,855
381,110
176,009
127,636
2,755
533
4,878
296,545
15,770,044
1,052,031
192,566
15,362
1,086,512
15,558,359
16,332,360
1,182,310
195,321
33,910
1,117,245
16,236,014
-
270,841
398
1,212,468
15,123
1,467,788
457,542
-
2,972
15,230
17,060
452,740
..
411,475
41,442
2,859
1,219
-
451,277
869,017
312,283
6,229
1,228,917
32,183
2,371,805
4,460,502
203,590
30,140
11,386
137,124
4,508,214
4,460,502
203,590
30,140
11,386
137,124
4,508,214
27,615,287
2,390,242
379,182
1,933,247
1,933,247
29,626,347
264,456
1,463,835
94,130
-
-
1,634,161
.�
$ 27,879,743 S
3,854,077 S
473,312
S 1,933,247
S 1,933,247
S 31,260,508
62
M
STATISTICAL SECTION
The Statistical Schedules differ from the other financial statement
presentations because they generally disclose data for more than one
fiscal year. They also present non -accounting data such as social and
.� economic data and financial trends of the City.
➢ General Governmental Expenditures & Other Financing Uses by Function - Last Ten
..
Fiscal Years
➢
General Governmental Revenues & Other Financing Sources - Last Ten Fiscal Years
..
➢
Property Tax Levies and Collections - Last Ten Fiscal Years
➢
Assessed and Estimated Actual Value of Property - Last Ten Fiscal Years
,.
➢
Principal Taxpayers
➢
Property Tax Rates - Direct and Overlapping Governments - Last Ten Fiscal Years
➢
Special Assessments Billing and Collections - Last Ten Fiscal Years
➢
Computation of Legal Debt Margin
➢
Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General
.,
Obligation Bonded Debt Per Capita
➢
Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt To
•
Total General Government Expenditures
➢
Computation of Direct and Overlapping Bonded Debt - General Obligation Bonds
..
➢
Revenue Bond Coverage - Golf Course Bond - Last Ten Fiscal Years
➢
Demographic Statistics - Last Ten Fiscal Years
..
➢
Property Value, Construction and Bank Deposits - Last Ten Fiscal Years
➢
Miscellaneous Statistics
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TABLE L
1 of
Fiscal
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
CITY OF SEBASTIAN, FLORIDA
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
LAST TEN FISCAL YEARS
General
Government
$ 1,271,768
1,856,873
2,651,408
1,944,089
1,439,181
1,816,090
1,934,610 (Z)
2,087,382
2,558,781
1,977,033
Public
Safety
$ 1,785,073
1,585,901
1,627,955
1,706,546
1,842,266
2,122,823
2,129,662 (2)
2,316,796
2,588,526
3,427,711
Public
Works (4)
$ 1,677,206
1,454,962
1,442,598
1,543,487
2,006,966
1,908,915
2,008,451
2,087,873
2,449,167
3,431,219
E
(1) This schedule lists expenditures of the General, Special Revenue, and Debt Service funds only.
(2) Code Enforcement Division previously reported under General Government, but is
now reported under Public Safety.
(3) Housing and Community Development expenditures related to CDBG Grant.
(4) Public works includes physical environment, transportation, and economic environment.
M.
Debt
Service
133,008
133,008
255,297
214,175
211,956
386,183
364,396
364,407
364,366
364,373
M
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Capital
Other
Outlay
Expenditures Total«.
$ 442,474
$ - $ 5,309,529
609,079
- 5,639,823
1,124,542
- 7,101,800
1,331,130
- 6,739,427
2,628,671
- 8,129,040
191,226
4,830 (3) 6,430,067
192,785
617 t31 6,630,521
607,151
- 7,463,609
367,010
- 8,327,850
595,814
9,796,150
65
TABLE 1
2 of
Pa
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TABLE 2
1 of
CITY OF SEBASTIAN, FLORIDA
GENERAL GOVERNMENTAL REVENUES BY SOURCE
LAST TEN FISCAL YEARS
..
Licenses
Fiscal
and Inter-
Charges for
Year
Taxes
Permits Governmental
Services
1994
$ 4,230,835
$ 347,786 $ 934,210
$ 166,095
1995
4,486,685
278,618 961,887
82,653
1996
4,931,996
321,149 1,166,881
74,657
1997
5,250,861
345,463 1,332,676
84,051
1998
5,612,313
388,936 1,366,428
51,196
1999
3,800,242
(3) 448,928 3,600,474 (3)
33,097
2000
4,018,521
475,345 3,725,671
159,701
2001
4,513,698
487,618 4,031,263
282,521
00
2002
4,467,701
578,695 4,782,829
1,075,220
2003
5,481,367
878,097 4,341,707
857,494
M
(1) This schedule lists revenues of the General, Special Revenue, and Debt Service funds only.
(2) No Special Assessments for these years.
(3) Local Option Gas Tax and Discretionary Sales Tax previously classified as taxes. The City does
not collect Qrese taxes, but receives them from the State. Therefore, they are not included in Taxes. .�
66
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TABLE2
2 of2
Interest and
Special
Fines
Other Revenues
Assessments
Total(l)
$ 57,257
S 205,169
(2)
S 5,941,352
67,774
441,312
S 174,060
6,492,989
82,477
417,495
135,336
7,129,991
59,198
461,249
68,474
7,601,972
71,194
510,007
30,522
8,030,596
89,697
314,910
44,964
8,332,312
140,672
485,479
128,154
9,133,543
148,676
490,143
28,528
9,982,447
127,027
557,304
31,756
11,620,532
119,752
644,682
22,560
12,345,659
67
TABLE 3
1 of
CITY OF SEBASTIAN, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Fiscal
Total Tax
Current Tax
Year
Levy
Collections
1994
$ 2,452,523
$ 2,245,731
1995
2,510,166
2,294,209
1996
2,667,313
2,463,039
1997
2,727,083
2,513,627
1998
2,909,597
2,679,819
1999
2,869,796
2,726,857
2000
2,422,756
2,283,898
2001
2,542,544
2,455,930
2002
2,635,277
2,489,854
2003
2,862,650
2,725,515
Source: Indian River County Property Appraiser and Tax Collector
(1) Does not include penalties and interest on delinquent taxes
Percent of
Current Tax
Collections
to Tax Lev?
91.6%
91.4%
92.3%
92.2%
92.1 %
95.0%
94.3%
96.6%
94.5%
95.2%
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4"
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Oft
TABLE3
2 of 2
Percent of
Delinquent
Total Tax
Tax
Total Tax
Collections
Collections(l)
Collections(')
to Tax Levy
$ 177,793
$ 2,423,524
98.8%
167,181
2,461,390
98.1 %
156,752
2,619,791
98.2%
150,526
2,664,153
97.7%
130,803
2,810,622
96.6%
2,912
2,729,769
95.1 %
35,050
2,318,948
95.7%
51,690
2,507,620
98.6%
36,421
2,526,275
95.9%
26,908
2,752,423
96.1 %
00
.•
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TABLE 4
1 of 2
CITY
OF SEBASTIAN, FLORIDA
ASSESSED AND ESTIMATED ACTUAL
VALUE OF PROPERTY(')
.,
LAST TEN FISCAL YEARS
Real
Property
Personal
Property
�+
Fiscal
Assessed
Estimated
Assessed
Estimated
Year
Value
Actual Value
Value
Actual Value
1994
$ 484,794,820
$ 605,993,525
$ 25,954,533
$ 25,954,533
1995
514,374,980
642,968,725
26,554,691
26,554,691
r.
1996
531,461,580
664,326,975
24,774,960
24,774,960
1997
563,855,210
704,819,013
30,303,882
30,303,882
1998
587,811,960
734,764,950
31,210,876
31,210,876
1999
626,274,970
782,943,713
46,027,721
46,027,721
2000
656,619,860
820,774,825
42,216,162
41,533,985
2001
754,577,150
943,221,438
45,195,579
45,195,579
2002
829,224,615
1,036,530,769
45,355,170
45,355,170
2003
946,293,950
1,182,867,438
48,613,628
48,613,628
Source: Indian River County Property Appraiser
(1) Total assessed value based on approximately 80 percent of estimated actual value.
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TABLE 4
2 of 2
Ratio of Total
Exemptions
Total
Total
Assessed Value
Real
Assessed
Estimated
To Total Estimated
Property
Value
Actual Value
Actual Value
146,957,174
$ 510,749,353
$ 631,948,058
80.8%
154,362,555
540,929,671
669,523,416
80.8%
161,007,095
556,236,540
689,101,935
80.7%
172,478,432
594,159,092
735,122,895
80.8%
177,515,747
619,022,836
765,975,826
80.8%
187,751,454
672,302,691
828,871,434
81.1%
190,327,263
698,836,022
862,308,810
81.0%
198,445,669
799,772,729
988,417,017
80.9%
205,977,066
874,579,785
1,091,885,939
80.8%
217,554,663
994,907,578
1,231,481,066
80.8%
so
71
TABLES
CITY OF SEBASTIAN, FLORIDA
PRINCIPAL TAXPAYERS
SEPTEMBER 30, 2003
2003
Percentage of
Assessed
Total Assessed
Taxpayer
Type of Business
Valuation
Valuation
Florida Power & Light
Utility/Electric
$ 12,489,790
1.26%
Wal-Mart Stores Inc.
Retail
11,554,614
1.16%
BellSouth Communications
Utility/Telephone
8,029,404
0.81%
BW US 1 Inc
Retail/Rentals
6,290,380
0.63%
Ruth Guest House, Inc.
Retail Rentals
3,925,780
0.39%
Turner, James T.
MHP/Rentals
3,784,200
0.38%
Seb. Inlet Marina & Trd. Co., Inc.
Restaurant/Hotel
3,763,948
0.38%
Oyster Point Resort Condo
Time Share/Rental
3,419,345
0.34%
Comcast of Florida 1, Inc.
Communications
2,949,876
0.30%
Sandy Pines LTD
Rental
2,789,640
0.28%
Source: Indian River County Property Appraiser's Office.
72
f
CITY OF SEBASTIAN, FLORIDA
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
_
City of Sebastian
Indian River County School Board
Debt
Total
Total
Debt
Total
Fiscal
Operating Service
City
County�'l
Operating
Service
School
Year
Millage Millage
Millage
Millage
Millage
Millage
Millage
OtheP
1994
6.9000
6.9000
8.35820
8.59060
1.25400
9.84460
2.58730
1995
6.9000
6.9000
8.21258
8.98330
1.21500
10.19830
2.26023
..
1996
6.9000
6.9000
8.66433
9.13800
1.21000
10.34800
2.74083
_
1997
6.9000
6.9000
8.56874
9.15400
1.16500
10.31900
2.64544
1998
6.9000
6.9000
8.30490
9.00300
1.13700
10.14000
2.49690
1999
6.5000
6.5000
8.33160
8.61400
1.00000
9.61400
(3)
2000
5.0000
5.0000
8.24360
8.61400
1.00000
9.61400
1.52091
2001
5.0000
5.0000
8.24860
8.67700
0.88000
9.55700
1.62899
2002
4.5904
4.5904
8.08410
8.40200
0.68000
9.08200
1.61045
2003
4.5904
4.5904
8.03020
8.10200
0.63000
8.73200
1.90075
(1)
Millage includes General
Fund, M.S.T.U.s,
Emergency
Services
District and
Land Bonds.
(2)
All Special Taxing Districts.
(3)
Information not available.
Source: Indian River County Property Appraiser's Office
73
TABLE 7
on
..
CITY OF SEBASTIAN, FLORIDA
SPECIAL ASSESSMENTS BILLINGS AND COLLECTIONS
LAST TEN FISCAL YEARS
_
Special Special
Fiscal
Assessments Assessments
^
Year
Billings Collecte4l)
1994
(3) (3)
..
1995
(3) (3)
1996
S 135,336 S 306,760
1997
59,925 68,474
1998
58,454 71,251
1999
200,860 t�1 64,823
2000
214,686 (2) 128,230
2001
49,796 28,528
^
2002
39,234 31,756
2003
31,755 22,560
(1)
Assessments collected which exceed current assessments billed indicate prepayment
of assessments or payment of delinquent assessments, including penalties.
(2)
Includes all annual assessments plus total assessments on defaults
plus penalties and interest.
^
(3)
There were no special assessments during these years.
OR
^
74
TABLE 8
CITY OF SEBASTIAN, FLORIDA
COMPUTATION OF LEGAL DEBT MARGIN
SEPTEMBER 30, 2003
Assessed valuations:
Assessed value $ 728,739,287
Add back: exempt real property 217,554,663
Total assessed value $ 946,293,950
Legal debt margin
Debt limitation - 5 percent of total assessed value $ 47,314,698
Debt applicable to limitation:
Total bonded debt $ 9,577,615
Less: Special assessment bonds (77,615)
Revenue bonds (9,500,000)
Total applicable to limitation
Legal debt margin $ 47,314,698
•
75
M
TABLE 9
TABLE 10
CITY OF SEBASTIAN, FLORIDA
RATIO OF NET GENERAL OBLIGATION BONDED DEBT
TO ASSESSED VALUE AND NET GENERAL OBLIGATION
BONDED DEBT PER CAPITA
SEPTEMBER 30, 2003
The City of Sebastian has no general bonded debt.
CITY OF SEBASTIAN, FLORIDA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
FOR GENERAL OBLIGATION BONDED DEBT
TO TOTAL GENERAL GOVERNMENT EXPENDITURES
SEPTEMBER 30, 2003
The City of Sebastian has no general bonded debt.
76
TABLE I I
CITY OF SEBASTIAN, FLORIDA
COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT
GENERAL OBLIGATION BONDS
SEPTEMBER 30, 2003
The City of Sebastian has no overlapping bonded debt or general bonded debt.
m
00 77
TABLE 12
o.
CITY OF SEBASTIAN, FLORIDA
REVENUE BOND COVERAGE
GOLF COURSE BOND �.
LAST TEN FISCAL YEARS.
go
Net Revenue
Fiscal
Gross
Operating
Available for
Debt
Service Requirements
Year
Revenues(l)
Expenses (2)
Debt Service
Principal
Interest
Total
Coverage
1994
$ 1,178,875
$ 891,881
$ 286,994
$ 80,000
S 123,855
S 203,855
(3)
1.41
(4)
1995
1,139,795
788,449
351,346
85,000
120,655
205,655
(3)
1.71
(4)
1996
1,213,952
854,479
359,473
90,000
116,830
206,830
(3)
1.74
(4)
1997
1,356,609
884,286
472,323
95,000
112,600
207,600
131
2.28
(4)
1998
1,351,368
926,174
425,194
100,000
107,850
207,850
(3)
2.05
143
so
1999
1,414,976
982,772
432,204
105,000
102,650
207,650
(31
2.08
(4)
2000
1,471,743
1,004,760
466,983
110,000
96,980
206,980
(3)
2.26
(4)
2001
1,165,091 (5)
1,163,741 (n
1,350
(6)
(7)
r�
2002
1,386,424
1,140,640
245,784
100,000
94,290
194,290
cbl
1.27
(7)
2003
1,400,154
1,088,052
312,102
220,000
85,490
305,490
(6)
1.02
(')
M
(1) Total revenues (including interest) and other non -operating revenues.
(2) Total direct operating expenses and exclusive of depreciation and amortization.
00
(3) Golf Course Bond, Series 1985 refunded in 1992 with Series 1992.
(4) Required coverage is 1.0.
(5) Golf Course closed for four months for renovations.
(6) Golf Course Bond, Series 1992 refunded with Recreational Facilities Improvement and Refunding Revenue Bonds,
Series 2001. Debt Service principal payment due October 1. Debt service interest payment due April 1 and �+
October 1.
(7) Required coverage is 1.25.
r
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78
'�
•
TABLE 13
•
CITY OF SEBASTIAN, FLORIDA
DEMOGRAPHIC STATISTICS
• LAST TEN FISCAL YEARS
•
Fiscal School
Unemployment
•
Year Population(l) Enrollment 1
Rate
1994 12,900 1,397
11.0%
•
1995 13,489 1,413
9.4%
1996 13,967 1,313
9.5%
1997 14,470 1,324
8.4%
1998 15,115 1,410
8.1%
1999 15,707 1,383
8.6%
2000 16,181 (4) 1,342
9.5%
2001 16,667 1,371
6.8%
2002 17,167 4,309
9.8 %
2003 18,425 4,340
8.0%,
•
Data Sources
•
(1) Bureau of Economics & Business Research University of Florida
(2) School District
(3) State Department of Labor - for Indian River County
•
(4) 2000 Census figure.
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• 79
TABLE 14
1 of 2
CITY OF SEBASTIAN, FLORIDA
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
LAST TEN FISCAL YEARS
Property Value (1)
Fiscal
Year
Commercial
Residential Exemptions
Total
1994
$ 6,303,712
$ 25,587,753 $ 1,306,648 $
33,198,113
1995
141,544
19,538,885 996,617
20,677,046
..
1996
1,104,514
20,155,914 940,629
22,201,057
1997
3,626,024
24,918,675 2,027,739
30,572,438
1998
3,142,469
25,549,287 1,044,055
29,735,811
"
1999
4,177,601
27,941,640 1,150,494
33,269,735
2000
6,873,360
27,420,413 2,278,255
36,572,028
"
2001
2,449,336
31,267,926 3,379,271
37,096,533
2002
2,615,694
37,266,992 1,401,672
41,284,358
2003
5,435,000
87,370,232 762,300
93,567,532
..
(1) New construction property value
"
(2) Source: City Building Department
(3) Source: Federal Deposit Insurance Corporation and Federal Savings and Loan Insurance Corporation
(4) Information not available
* Valuation fees paid. ON
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TABLE 14
2 of 2
Commercial
Residential
- Construction (2)
Construction
(2)
Number of
Number of
Bank
Units Value*
Units
Value*
Deposits 1
0 $ 46,305
351
$ 233,502
$ 308,643
r� 10 23,192
238
179,816
318,583
9 30,621
240
183,177
331,765
11 42,111
335
216,196
293,368
0 42,628
276
223,511
312,097
11 46,236
282
248,702
14i
9 53,368
283
253,218
157,103
16 48,558
328
269,862
394,824
8 42,583
451
420,649
394,894
11 22,839
534
974,701
486,739
TABLE 15
^
CITY OF SEBASTIAN, FLORIDA
MISCELLANEOUS STATISTICS
SEPTEMBER 30, 2003 ^
Date of Incorporation
1924
^
Form of Government
Council/Manager
Number of employees (excluding police and fire):
107
Classified
85
Exempt
22
Area in Square Miles
13.8
Name of Government facilities and services:
Miles of streets
149.6 Miles
Number of street lights
3,543
^
Culture and Recreation:
Community centers
2
Parks
12
^
Park acreage
223.37
Golf courses
I
Swimming pools
0
Tennis courts
6
Police Protection:
Number of stations
I
^
Number of police personnel and officers
52
Number of patrol units
22
Number of law violations:
Physical arrests
557
^
Traffic violations
1,939
Parking violations
632
Facilities and services not included in the reporting entity
Fire Protection:
Number of stations
2
Number of fire personnel and officers
12
Number of calls answered
974
Number of inspections conducted
124
Sewage System:
Number of service connections
1,666
Water System:
^
Number of service connections
5,131
Number of fire hydrants
776
Education:
Number of elementary schools 2
Number of elementary school instructors 64 ^
Number of secondary schools 2
Number of secondary school instructors 169
Source: City of Sebastian Police and Growth Management Departments.
^
82
SINGLE AUDIT SECTION
The Single Audit Section contains various independent auditor's
reports and schedules as required by the Florida Single Audit Act,
_ Chapter 215.97, Florida Statutes for state and local governments that
receive state assistance.
➢ Report on Compliance and on Internal Control Over Financial
Reporting Based on an Audit of Financial Statements Performed
in Accordance with Governmental Auditing Standards
➢ Independent Auditor's Report on Compliance and Internal Control
over Compliance Applicable to Each Major Federal Program and
State Project
_ ➢ Schedule of Findings and Questioned Costs - Federal Programs
and State Projects
➢ Schedule of Expenditures of State Financial Assistance
83
CITY OF _
HOME OF PELICAN ISLAND -
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84 -
11111111
HOYTMANN,PDOBSONUBLIC o COMPANY, P.A.ACCNTANTS
M 215 Boytree Drive, Melbourne, Florida 32940, 321-255-0088, Fox 327-259-8648, www.hoyman.com
w
Charles W Hayman, Jr
Barbara J. Oswalt
Thomas L. Kirk
Karen E. Kirkland
Deborah A. Bradley
DIRECTOR EMERITUS
Roger W Dobson
Eugene K. Bjerning
A
Independent Auditor's Report on Compliance and on Internal Control
Over Financial Reporting Based on an Audit of Financial Statements
.. Performed in Accordance with Government Auditing Standards
Honorable Mayor and Members of City Council
City of Sebastian
Sebastian, Florida
We have audited the 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 as of
and for the year ended September 30, 2003, which collectively comprise the City's basic financial statements,
and have issued our report thereon dated January 9, 2004. 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.
Compliance
As part of obtaining reasonable assurance about whether the City of Sebastian, Florida's financial statements are
.. free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts and grants, 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 that are required to be reported under Government Auditing Standards. However,
we noted an immaterial instance of noncompliance that we have reported to management of the City of
,,. Sebastian, Florida, in a separate letter dated January 9, 2004.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered City of Sebastian, Florida's internal control over financial
reporting in order to determine our auditing procedures for the purpose of expressing our opinions on the
w financial statements and not to provide assurance on the internal control over financial reporting. Our
consideration of the internal control over financial reporting would not necessarily disclose all matters in the
internal control over financial reporting that might be material weaknesses. A material weakness is a condition
in which the design or operation of one or more of the internal control components does not reduce to a
relatively low level the risk that misstatements in amounts that would be material in relation to the financial
statements being audited may occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. We noted no matters involving the internal control over financial
reporting and its operation that we consider to be material weaknesses.
w
• American Institute of Certified Public Accountants • Florida Institute of Certified Public Accounlonis • SEC Practice Section of the A.I.C.P.A. • CPAmerico International
Honorable Mayor and Members of City Council
City of Sebastian
Page Two
This report is intended solely for the information of the City of Sebastian, Florida and management, federal and
state awarding agencies and the State of Florida Office of the Auditor General and is not intended to be and
should not be used by anyone other than these specified parties.
Hoyman, Dobson & Company, P.A.
January 9, 2004
M
86
HOYMAN, DOBSON & COMPANY, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
^ 215 Baytree Drive, Melbourne, Florida 32940, 321-255-0088, Fox 321-259-8648, vw .hoyman.com
Charles W Hayman, Jr
Barbara] Oswalt
Thomas I. Kirk
Karen E Kirkland
Deborah A. Bradley
DIRECTOR EMERITUS
Roger W Dobson
^ Eugene K. B'Ierning
^ Independent Auditor's Report on Compliance and Internal
Control Over Compliance Applicable to Each Major
Federal Program and State Project
Honorable Mayor and Members of City Council
City of Sebastian
^
Sebastian, Florida
Compliance
We have audited the compliance of the City of Sebastian, Florida with the types of compliance requirements
described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement,
and the requirements described in the Executive Office of the Governor's State Projects Compliance
Supplement, that are applicable to each of its major federal programs and state projects for the year ended
September 30, 2003. The City of Sebastian, Florida's major federal programs and state projects are identified
in the summary of auditors' results section of the accompanying Schedule of Findings and Questioned Costs.
^+ Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major
federal programs and state projects is the responsibility of City of Sebastian, Florida's management. Our
responsibility is to express an opinion on the City of Sebastian, Florida's compliance based on our audit.
We conducted our audit in accordance with 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; OMB Circular A-133, and Chapter 10.550, Rules of the Auditor
General. Those standards, OMB Circular A-133, and Chapter 10.550, Rules of the Auditor General, require
that we plan and perform the audit to obtain reasonable assurance about whether non-compliance with the
^ types of compliance requirements referred to above that could have a direct and material effect on a major
federal program or state project occurred. An audit includes examining, on a test basis, evidence about the
City of Sebastian, Florida's compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our
^ opinion. Our audit does not provide a legal determination on the City of Sebastian, Florida's compliance with
those requirements.
In our opinion, the City of Sebastian, Florida complied, in all material respects, with the requirements
referred to above that are applicable to each of its major federal programs and state projects for the year
ended September 30, 2003.
..
^ 87 -
American Institute of Certified Public Accountants • Florida Institute of Certified Public Accountants • SEC Practice Section of the A.I.C.P.A. • CPAmerica International
Honorable Mayor and Members of City Council
City of Sebastian
Page Two
Internal Control Over Compliance
The management of the City of Sebastian, Florida is responsible for establishing and maintaining effective
internal control over compliance with requirements of laws, regulations, contracts, and grants applicable to
federal programs and state projects. In planning and performing our audit, we considered the City of
Sebastian, Florida's internal control over compliance with requirements that could have a direct and material
effect on a major federal program or state project to determine our auditing procedures for the purpose of
expressing our opinion on compliance and to test and report on internal control over compliance in
accordance with OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General.
Our consideration of the internal control over compliance would not necessarily disclose all matters in the ..
internal control that might be material weaknesses. A material weakness is a condition in which the design or
operation of one or more of the internal control components does not reduce to a relatively low level the risk
that non-compliance with applicable requirements of laws, regulations, contracts, and grants that would be
material in relation to a major federal program or state project being audited may occur and not be detected
within a timely period by employees in the normal course of performing their assigned functions. We noted
no matters involving the internal control over compliance and its operation that we consider to be material
weaknesses.
This report is intended solely for the information of the City of Sebastian, Florida and management, federal and
state awarding agencies and the State of Florida Office of the Auditor General and is not intended to be and
should not be used by anyone other than these specified parties.
//-4 ", AS&M 4 0 1AW,
Heyman, Dobson & Company, PA
January 9, 2004
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88
CITY OF SEBASTIAN, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS —
FEDERAL PROGRAMS AND STATE PROJECTS
FISCAL YEAR ENDED SEPTEMBER 30, 2003
SECTION A — SUMMARY OF AUDITOR'S RESULTS
Financial Statements
Tvoe of Auditor's renort issued:
Internal control over financial renortine:
..
Material weakness(es) identified?
Reportable conditions(s) identified not considered
to be material weaknesses?
.�
Noncompliance material to financial statements noted?
Federal and State Awards
Internal control over maior Droerams and Droiects:
Material weakness(es) identified?
Reportable conditions(s) identified not considered
to be material weaknesses?
TvDe of Auditor's renort issued on comDliance
..
for maior Droerams and Droiects:
Identification of maior nroerams:
Name of Federal Proeram
U.S. Department of Transportation— Airport Improvement Program
Dollar threshold used to distineuish between
TvDe A and TvDe B oroerams
Identification of maior Droiects:
Name of State Proiect
Florida Department of Transportation -
T Hangers and Lighting
Install Runway Lighting & Airfield Security
Infrastructure Improvements
Airfield Lighting Vault & Equipment
Rehab of Runway 9/27
Install Security Fencing
Clear Runway 9/27 Safety Area
Construct Administration Building
Wetland and Environmental Mapping & Reports
Dollar threshold used to distineuish
between Tvoe A and TvDe B aroiects:
Oualified as a low -risk auditee Dursuant to OMB Circular A-133:
Unqualified
yes X
no
yes X
none reported
yes X
no
yes X
no
yes X
none reported
Unqualified
Federal CFDA No.
20.106
$300,000
State CSFA No.
55.004
55.004
55.004
55.004
55.004
55.004
55.004
55.004
55.004
$ 100,000
yes X no
M 89
0
CITY OF SEBASTIAN, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS —
FEDERAL PROGRAMS AND STATE PROJECTS (CONTINUED)
FISCAL YEAR ENDED SEPTEMBER 30, 2003
SECTION B — FINDINGS - FINANCIAL STATEMENTS
No matters were reported.
SECTION C — FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL PROGRAMS
No matters were reported.
SECTION D — FINDINGS AND QUESTIONED COSTS - MAJOR STATE PROJECTS
No matters were reported.
SECTION E — OTHER ISSUES
The Summary Schedule of Prior Audit Findings presented on page 87 does not address major Federal
programs as the City of Sebastian, Florida did not qualify for an audit in accordance with OMB Circular A-
133, Audits of States, Local Governments, and Non -Profit Organizations for the year ended September 30,
2002.
M
90 ,�
CITY OF SEBASTIAN, FLORIDA
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS — STATE PROJECTS
FISCAL YEAR ENDED SEPTEMBER 30, 2003
PRIOR YEAR FINDINGS AND QUESTIONED COSTS —
MAJOR STATE PROJECTS
�+ 02-01 Florida Department of Environmental Protection - CSFA No. 37.017
Florida Recreation Development Assistance Program
Expansion of Riverview Park, State Project No. F02370 and
., Riverview Park Expansion, State Project No. F03394
Condition: As stated in the grant documents, "commencement documentation" must be filed
with the state agency prior to the commencement of project acquisition or development in
accordance with Chapter 62-D5.058(6)(f) of the Florida Administrative Code. Upon determining
that the documentation complies, the state agency will then give notice to the City to commence
., with the project acquisition and development and approve requests for payment.
The City did not file the required "commencement documentation" on a timely basis for these
two state projects. Thus, the City started the project before obtaining approval from the State
agency to begin.
Auditor's Recommendation: All departments involved in initiating grants should read the
applicable grant document diligently and become familiar with all reporting requirements. The
Finance department should broaden their scope for monitoring each department's compliance
with reporting requirements. In addition, the Grant Administrator should expand the already
existing schedule used to monitor quarterly reports to include all reporting requirements for each
grant. This schedule should be in the form of a checklist to keep in each grant file in order to
track that all notifications are received from the departments for each reporting requirement.
Current Status: Management has established a set of procedures to monitor the requirements
from grant initiation through grant completion as set forth in each grant contract. For fiscal year
w 2003, procedures are in place and operating effectively.
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91
CITY OF SEBASTIAN, FLORIDA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
AND STATE FINANCIAL ASSISTANCE
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
Federal / State Agency
CFDA
Contract
Pass -through Entity
CSFA
Grant
Federal Proeram / State Proiect
No.
No.
U.S. Department of Justice
Direct Programs:
Office ofJustice Programs
COPS SRO Grant
16.710
2001SHVIX0298
Btdlctproof Vest Partnership
16.607
N/A
Indirect Programs:
Passed through Florida Department of Law Enforcement
Local Law Enforcement Block Grant
16.592
03-0-2Q-I040.02.093
Total U.S. Department of Justice
U.S. Department of Treasury
Direct Programs
Gang Resistance Education & Training (G.RE.A.T.)
21.053
ATCO20197
Gang Resistance Education & Training (G.REA.T.)
21.053
ATC03000250
Total U.S. Department of Treasury
U.S. Department of Transportation
Direct Programs:
Federal Aviation Administration - Airport Improvement Program
Airfield Fencing/Access Control
20.106
3-12-0145-03-2002
Clear Runway 927 Safety Areas
20,106
3-12-0145-03-2002
Total U.S. Department of Transportation
TOTAL EXPENDITURES OF FEDERAL AWARDS:
Department of Environmental Protection
Direct Projects:
Florida Recreafion Development Assistance Program
Barber Street Sports Complex
37,017
F01049
Riverview Park Expansion
37.017
F03394
Total Department of Environmental Protection
Department of Transportation
Direct Projects:
Joint Participation Agreement with Florida
Deparunent ofTrmaportatiun AAnion
Administration:
T Hangars and Lighting
55.004
407345-1-94-01
Install Runway Lighting & Airfield Security
55.004
409783-1-94-01
Infrastructure Improvements
55.004
236320-1-94-01
Airfield Lighting Vault & Equipment
55.004
411094-1-94-01
Rehab of Runway 927
55.004
412976-1-94-01
Install Security Fencing
55.004
412975-1-94-01
Clear Runway 927 Safety Areas
55.004
407552.144-01
Construct Adminstrition Building
55.004
412382-1-94-01
Weiland and Emimmnental Mapping & Reports
55.004
407632-1-94-01
Total Department of Transportation
TOTAL EXPENDFFURES OF STATE FINANCIAL ASSISTANCE:
This schedule is prepared on the accrual basis of accounting.
The accompanying notes are an integral part of the schedule.
92
Expenditures
S 44,584 S
11.265
Transfer to
Subrecipients
t�
10,000
65.849
780
8,749
9,529
,a.
205,468
457,088
662,556
S 737,934 S -
t�
S 21.056
30,708
51,764
t✓,
a�
21,806
14M21
154,054
56,109
22,128
11,414
25,424
23,633 a.
13,680
478,069
oar
S 529.833 S -
04
A
f_1
^I
HOYMAN, DOBSON & COMPANY, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
215 Boytree Drive, Melbourne, Florida 32940, 32 1-255-0088, Fax 32 1-259-8648, www hoymon. r om
Charles W. Hayman, jr
Barbaro j. Oswalt
Thomas L. Kirk
Karen E. Kirkland
Deborah A Bradley
DIRECTOR EMERITUS
Roger W. Dobson
Eugene K Bjerning
Independent Auditor's
Management Letter
Honorable Mayor and Members of City Council
City of Sebastian
Sebastian, Florida
We have audited the financial statements of the City of Sebastian, Florida, as of and for the fiscal year
ended September 30, 2003, and have issued our report thereon dated January 9, 2004.
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 OMB Circular A-133, Audits of States. Local
Governments. and Non -Profit Organizations. We have issued our Independent Auditor's Report on
Compliance and Internal Control over Financial Reporting, Independent Auditor's Report on Compliance
and Internal Control over Compliance Applicable to each Major Federal Program and State Project, and
Schedule of Findings and Questioned Costs. Disclosures in those reports and schedule, which are dated
January 9, 2004, should be considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General.
Those rules (Section 10.554(1)(g)l.a.) require that we address in the management letter, if not already
addressed in the auditor's reports on compliance and internal controls or schedule of findings and
questioned costs, whether or not inaccuracies, shortages, defalcations, fraud, and/or violations of laws,
rules, regulations, and contractual provisions reported in the preceding annual financial audit report have
been corrected. All inaccuracies, irregularities, shortages, defalcations, and/or violations of laws, rules,
regulations, and contractual provisions disclosed in the preceding annual report have been corrected.
_ The Rules of the Auditor General (Section 10.554(1)(g)l.b.) require that we address in the management
letter, if not already addressed in the auditor's reports on compliance and internal controls or schedule of
findings and questioned costs, whether or not recommendations made in the preceding annual financial
audit report have been followed. The recommendations made in the preceding annual financial audit
report have been corrected.
As required by the Rules of the Auditor General (Section 10.554(I)(g)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.
93
• American Institute of Certified Public Accountants • Florida Institute of Certified Public Accountants • SEC Practice Section of the A.I.C.P.A. • CPAmeroo International
Honorable Mayor and Members of City Council
City of Sebastian
Page Two
The Rules of the Auditor General (Section 10.554(1)(g)4.) require disclosure in the management letter of
the following matters if not already addressed in the auditor's reports on compliance and internal controls .,
or schedule of findings and questioned costs: (1) violations of laws, rules, regulations, and contractual
provisions that have occurred, or are likely to have occurred; (2) improper or illegal expenditures, (3)
improper or inadequate accounting procedures (e. g., the omission of required disclosures from the ..
financial statements); (4) failures to properly record financial transactions; and (5) other inaccuracies,
shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditor.
Our audit disclosed the following matters required to be disclosed: ..
Grant Compliance
1. Finding: The Davis -Bacon Act and DOL regulations (29 CFR part 5, "Labor Standa ds Provisions
Applicable to Contacts Governing Federally Financed and Assisted Construction") require contractors
and subcontractors to submit to the non -Federal entity weekly, for each week in which any contract
work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR
sections 5.5 and 5.6).
During our testing of the City's Airport Improvement Program grants under CFDA No. 20.106, we
noted one contract in which the City did not obtain certified payrolls from the contractor on a weekly
basis for each week that contract work was performed, but instead planned to review all certified
payrolls at the end of the contract before the final contract payment was made.
Recommendation: The lack of ongoing monitoring by the City as the project progresses increases the
risk that a contractor could operate outside of the guidelines established by the Davis -Bacon Act and
the DOL regulations and it not be detected in a timely manner. We recommend that the City obtain
certified payrolls from the contractor on a weekly basis. This applies to all contractors or
subcontractors who employ laborers and mechanics to work on construction contracts in excess of
$2,000 financed by Federal assistance funds.
Management response: The Airport director has notified all contractors that it is necessary to submit
certified payrolls with their invoice in order for the City to approve and pay said invoice. It has
become the standard procedure that all invoices for payments will be reviewed to make sure certified
payroll information is submitted with the pay request. The certified payroll informatioa will be kept
in each applicable project file.
2. Finding: While obtaining an understanding of internal controls over major federal programs, it came
to our attention that management does not periodically conduct independent reviews of procurement
and contracting activities to determine whether policies and procedures are being followed as _
intended.
Recommendation: Although we noted no significant issues during our testing, we recommend that the
City implement some type of independent review of procurement and contracting activities, at regular
intervals, to ensure that all policies and procedures are being followed.
Management response: The Purchasing Department concurs with your recommendation. The ..
Purchasing Department staff is currently looking into the possibility of implementation of independent
review of procurements and contracting activities at regular intervals to ensure that all policies and
procedures are being followed. •
RE
M
Honorable Mayor and Members of City Council
City of Sebastian
Page Three
Budset Comoliance
.. 3. Finding: At September 30, 2003 the City had two special revenue funds (the Stormwater Utility Fund
and the Law Enforcement Forfeiture Fund) with budgetary expenditures in excess of appropriations,
which is not permitted under Florida Statutes.
Recommendation: The City should monitor the budget throughout the fiscal year and take any budget
amendments to council to ensure compliance with Florida law in the future.
Management resoonse: The Finance Department is in the process of developing a year-end close out
procedure to ensure budget compliance in the future.
Noncompliance with Debt Covenant
4. Finding: The Golf Course bonds have a debt covenant that requires revenue available for debt
service to current debt service to be at least 1.25. The ratio at September 30, 2003 was 1.02.
Therefore, the City was not in compliance with this ratio. Per the bond document, noncompliance
requires the City's bond consultant to review the City's rates, fees, methods of operation, etc. and to
make a written recommendation as to the method by which the City may promptly act to comply with
the rate covenant.
�* Recommendation: We recommend the City obtain from the bond consultant his/her written
recommendations on how this noncompliance can be corrected and immediately implement the
recommendations. In addition, the City should monitor compliance with bond covenants on a
.� quarterly basis.
Management resoonse: The Finance Department contacted the City's bond consultant as soon as
., the noncompliance issue was discovered and is waiting for a response from the consultant. The
City's Golf Course conducts a rate review yearly. Currently, the rate structure is competitive with
the local market. Gold Course Management is monitoring the revenue stream closely to ensure the
on Golf Course is in compliance with the debt covenant in the future.
The Rules of the Auditor General (Section 10.554(1)(g)5.) also require that the name or official title and
w legal authority for the primary government and each component unit of the reporting entity be disclosed
in the management letter, unless disclosed in the notes to the financial statements. The legal authority for
the City of Sebastian, Florida is disclosed in the footnotes. 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 October1989.
As required by the Rules of the Auditor General (Section 10.554(I)(g)6.a.), the scope of our audit
included a review of the provisions of Section 218.503(1), Florida Statutes, regarding financial
emergencies. In connection with our audit, we determined that the City of Sebastian, Florida is not in a
state of financial emergency as a consequence of the conditions described in Section 218.503(1), Florida
Statutes.
95
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Honorable Mayor and Members of City Council
City of Sebastian
Page Four
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As required by the Rules of the Auditor General (Section 10.554(l)(g)6.b.), we determined that the ..
annual financial report for the City of Sebastian, Florida for the fiscal year ended September 30, 2003,
filed with the Department of Financial Services pursuant to Section 218.32, Florida Statutes, is in
agreement with the annual financial audit report for the fiscal year ended 2003. ..
As required by the Rules of the Auditor General (Section 10.554(1)(g)6.c. and 10.556), we applied
financial condition assessment procedures. It is management's responsibility to monitor the entity's
financial condition, and our financial condition assessment was based in part on representations made by
management and the review of financial information provided by the same.
This report is intended solely for the information of the City of Sebastian, Florida and management, federal
and state awarding agencies and the State of Florida Office of the Auditor General and is not intended to be
and should not be used by anyone other than these specified parties.
-
Hoyman, Dobson & Company, PA
January 9, 2004
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