HomeMy WebLinkAbout2017 - 2018CITY OF SEBASTIAN, FLORIDA
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HOME OF PELICAN ISLAND
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended September 30, 2018
CITY COUNCIL
Jim Hill Linda Kinchen
Mayor
Ed Dodd
Council Member
Vice -Mayor
Albert lovino Bob McPartlan
Council Member Council Member
Prepared by: Administrative Services Department
CITY OF SEBASTIAN, FLORIDA
Table of Contents
Page
INTRODUCTORY SECTION
City Officials 2
Letter of Transmittal 3
Organizational Chart 7
GFOA Certificate of Achievement 8
FINANCIAL SECTION 11
Independent Auditors' Report
12
Management's Discussion and Analysis
17
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Position
30
Statement of Activities
31
Fund Financial Statements:
Balance Sheet - Governmental Funds
33
Reconciliation of Fund Balances for Governmental Funds to Net Position
of Governmental Activities
36
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds
37
Reconciliation of Net Changes in Fund Balances of Governmental
Funds to Change in Net Position of Governmental Activities
39
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual:
General Fund
40
Discretionary Sales Tax Special Revenue Fund
41
Riverfront Redevelopment Special Revenue Fund
42
Statement of Net Position - Proprietary Funds
43
Statement of Revenues, Expenses and Changes in Fund
Net Position - Proprietary Funds
44
Statement of Cash Flows - Proprietary Funds
45
Statement of Fiduciary Net Position
47
Statement of Changes in Fiduciary Net Position
48
Notes to Financial Statements
51
CITY OF SEBASTIAN, FLORIDA
Table of Contents
Page
Required Supplementary Information:
Single -employer Pension Trust Fund:
Schedule of Changes in Net Pension Liability and Related Ratios 83
Schedule of Investment Returns 85
Schedule of Contributions 85
Coastal Florida Public Employees Association Pension Plan:
Schedule of Employer Contributions 88
Combining and Individual Fund Financial Statements and Schedules:
Nonmajor Governmental Funds:
Combining Balance Sheet
91
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances
93
Schedule of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual:
Local Option Gas Tax Special Revenue Fund
95
Parking In -Lieu -Of Special Revenue Fund
96
Recreation Impact Fee Special Revenue Fund
97
Stormwater Utility Special Revenue Fund
98
Law Enforcement Forfeiture Special Revenue Fund
99
Stormwater Utility Revenue Bonds Debt Service Fund
100
Agency Fund:
Combining Statement of Changes in Assets and Liabilities 103
Other:
Capital Assets used in the Operations of Governmental Funds:
Comparative Schedule by Source 105
Schedule by Function and Activity 106
Schedule of Changes by Function and Activity 107
CITY OF SEBASTIAN, FLORIDA
Table of Contents
Page
STATISTICAL SECTION (UNAUDITED)
Statistical Section Table of Contents
110
Financial Trends Information
Net Position by Component
111
Changes in Net Position
113
Fund Balances, Governmental Funds
117
Changes in Fund Balances, Governmental Funds
119
Program Revenues by Function/Program
121
Revenue Capacity Information
Tax Revenues by Source
123
Direct and Overlapping Property Tax Rates
124
Actual and Estimated Value of Taxable Property
125
Principal Property Taxpayers
127
Property Tax Levies and Collections
128
Debt Capacity Information
Ratios of Outstanding Debt by Type
129
Ratios of General Bonded Debt Outstanding
130
Legal Debt Margin Information
131
Pledged Revenue Coverage
133
Demographic and Economic Information
Demographic and Economic Statistics
135
Principal Employers
138
Operating Information
Full -Time Equivalent City Government Employees by Function/Program
139
Operating Indicators by Function/Program
141
Capital Asset Statistics by Function/Program
143
Internal Control and Compliance
Independent Auditors' Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards 148
Independent Auditors' Management Letter 150
Independent Accountants' Report 152
INTRODUCTORY SECTION
CITY OF SEBASTIAN, FLORIDA
CITY OFFICIALS
For the Year Ended September 30, 2018
Paul Carlisle
City Manager
James Stokes
City Attorney
DEPARTMENT HEADS
Michelle Morris
Police Chief
Lisa Frazier
Community Development Director
Wayne Eseltine
Building Official
Jeanette Williams
City Clerk
Kenneth W. Killgore
Administrative Services Director/CFO
Tim Walker
Stormwater Utilities Director
Greg Gardner
Golf Course Director
Scott Baker Brian Benton
Public Facilities Director Leisure Services Director
OW OF
SIEELAST_"
HOME: OF PELICAN ISLAND
March 8, 2019
To the Citizens of the City of Sebastian, Florida:
We are submitting the Comprehensive Annual Financial Report of the City of Sebastian, Florida for the
fiscal year ended September 30, 2018, as prepared by the City's Administrative Services department.
State law requires that every general-purpose local government publish a complete set of audited
financial statements. This report is published to fulfill that requirement for the fiscal year ended
September 30, 2018.
Management assumes full responsibility for the completeness and reliability of the information
contained in this report, based on a comprehensive framework of internal control that is established
for this purpose. Because the cost of internal control should not exceed anticipated benefits, the
objective is to provide reasonable, rather than absolute, assurance that the financial statements are
free of any material misstatements.
Chapter 218.39, Florida Statutes requires that the financial statements of the City of Sebastian be
audited by a certified public accountant selected by the City Council. The City's independent Certified
Public Accountants, Rehmann Robson, has issued an unmodified ("clean") opinion on the City of
Sebastian's financial statements for the year ended September 30, 2018. The independent auditors'
report is located on page 13, 14 and 15. Management's discussion and analysis (MDr*A) immediately
follows the independent auditors' report and provides a narrative introduction, overview, and analysis
of the basic financial statements. The MDEtA complements this letter of transmittal and should be read
in conjunction with it.
As the recipient of federal and state financial assistance, the City is also responsible for the
establishment of an adequate internal control structure to help ensure compliance with applicable
laws and regulations related to those programs. The City is required to undergo an annual single audit
performed under the provisions of 2 CFR Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards and Chapter 10.550, Rules of the Florida
Auditor General. The City did not meet the threshold to require a federal single audit for the current
year. Information related to the state single audit, including the schedule of expenditures of state
financial assistance and auditors' reports on the internal control and compliance with applicable laws
and regulations are included in a separate report, under separate cover.
2
Profile of the Government
The City of Sebastian, Florida is located in Indian River County approximately midway through the east
coast of the Florida Peninsula (between Melbourne and Vero Beach) in an area known as the Treasure
Coast. It is recognized as the Nome of Pelican Island, the first designated wildlife refuge in the United
States, a Millennium City, and a Tree City USA. It was first incorporated as the Town of Sebastian in
1924. In the late 1950s General Development Corporation purchased the land from the Mackle family
of Miami and began the development of a planned community that is now the City of Sebastian. The
City has a population of 24,630 living in an area of approximately 14.6 square miles.
The City is empowered to levy a property tax on both real and personal property located within its
boundaries. It also is empowered by state statute to extend its corporate limits by annexation, which
it has done from time to time.
The City is a Florida municipal corporation with a five -member City Council. Council members serve a
two-year term. Annual elections are held on the first Tuesday following the first Monday in November
and two members are elected in even -numbered years and three members are elected in odd -
numbered years. Elections are non -partisan and at -large. Mayor and Vice Mayor are elected from
among the members of every newly seated Council at a Special meeting following the election each
year. The City has operated under a Council -City Manager form of government since 1989.
The City provides a wide range of services including general government administration, police
protection, the construction and maintenance of local roads, public works, recreational and cultural
activities, a golf course, a general aviation airport, and a building department to enforce building
codes.
This report includes all funds of the City. in evaluating the City as a reporting entity, we have included
all component units for which the City Council is financially accountable. The component units have
been blended with the financial statements presented for the Primary Government because the
component unit's governing body is the same as the City Council or because the component unit
exclusively serves the City. The blended component units are the Community Redevelopment Agency
recorded in the Riverfront Redevelopment Fund and Sebastian Police Officers' Pension Trust Fund.
The Council is required to adopt a final budget no later than the close of the fiscal year. This annual
budget serves as the foundation for the City's financial planning and control. The budget is prepared
by fund, function (e.g., transportation), and department (e.g., public works). Shifts in appropriations
within fund totals may be done administratively on the authority of the City Manager. Total fund
appropriation changes and use of contingency appropriations must be approved by the City Council.
Local Economy
The region (which includes the City of Sebastian and the surrounding unincorporated area within the
same county) has a fluctuating labor force depending on agricultural demand and is a strong
retirement community. Although the labor force fluctuates, unemployment in the region increased to
high levels for several years but has shown good improvement in the last few years. As of September
2018, the Florida Research Et Economic Database reported an improved unemployment rate of 3.9%,
which corresponds with improvements being enjoyed at the state and national levels. The overall
unemployment rate for the area has historically been greater than that of the State of Florida.
3
The largest major industry sector was Health Care and Social Assistance with 25.2% of the
employment, followed by Education with 20.6% of the employment and Public Administration with
14.5% of the employment. According to the U.S. Census Bureau (2000), 86% of the population age 25 or
older are high school graduates and 23.1% hold a bachelor's degree or higher. The area median age for
2010 was 50.1 per the U.S Census Bureau. The median household income for 2017 was $51,797, as
reported by the Florida Research and Economic Database. The geographical area of the City of
Sebastian, just north of the Treasure Coast, houses a number of high-tech industries including NASA
and various aerospace industry -related businesses. In the past, this attracted a workforce with a
higher than average education and technical skills to the vicinity but with the end of the Space Shuttle
program, the loss of these activities has affected job availability. Now, the area has diversified to
industries focused on building aerospace vehicles rather than just launching activities. This has helped
with providing employment for this highly skilled work force.
Long-term Financial Planning
The voters of Indian River County in November 2003 extended the Infrastructure Sales Surtax in the
amount of $.01 per $1.00 sale for an additional fifteen years and seven months beginning in January
2004. In November 2016, the voters once again extended the Surtax for another fifteen -year period.
This Infrastructure Sales Surtax is essential in providing for the City's emergency vehicle and capital
improvement needs. In addition, the City has funded a number of other capital projects with impact
fees and has actively pursued grant funding for some major transportation and environmental
improvements. It has also employed the use of a Community Redevelopment Agency that is funded by
means of tax -increment financing.
The millage was levied at a reduced rate of 3.4000 for fiscal year 2018. However, the City had an
increase in ad valorem values due to improvements and additions and the proceeds were about the
same as for fiscal year 2017. Construction activity resulted in 167 permits being issued for new
construction in fiscal year 2018 with a value of $39.8 million compared to 147 permits being issued for
new construction in fiscal year 2017 with a value of $37.2 million. These levels can be primarily
attributed to the improved outlook for the housing market.
At year end, General Fund unassigned fund balance was $5,047,473. The financial policies resolution
stipulates that $5,000,000 be maintained for declared national disasters. This is equivalent to about
40% of General Fund expenditures. The City has been steadfast and refused to spend down these
balances because the City understands reliance on accumulated fund balances to fund operating
expenditures is not a prudent fiscal strategy. To this end, the budget for fiscal year 2018 was balanced
without a reduction of fund balances.
Major Initiatives
Administration
The City continued to expend countless hours in pursuit of payments from FEMA and the State related
to Hurricane Matthew that occurred in October 2016 and Hurricane Irma that occurred in September
2017. Some success was realized during March and April 2018, when payments were finally received
for a majority of eligible submittals on Hurricane Matthew. No payments were received before year
end for Hurricane Irma.
4
Administrative initiatives included improving the City Council Chambers audio features by adding
sound supression panels and replacing the carpet. In other areas, efforts were made to use technology
advances, including upgrades to computer hardware, improvements to the network and acquisition of
better audio and visual equipment.
Stormwater
The main focus of Stormwater activities continues to be on the City's Stormwater Management
Program, which includes capital projects, maintenance, citizen response and education, and forward
planning. The City continued an emphasis on mowing and clearing swales and ditches. This is expected
to be critical to insuring a smooth flow of stormwater. City crews are now concentrated on the task of
keeping those areas clear of vegetation. Toward year end, it was determined to increase the
stormwater fee, so additional funds could be applied to capital projects. In addition it was decided
that in the future operation and maintenance activities previously accounted for in General Fund, will
be recorded within the Stormwater Utility Fund to offer additional transparency on how Stormwater
fees are being spent.
Traffic & Transportation
The City continues working on transportation improvements. Almost $850,000 was spent during 2018
from discretionary sales taxes and local option gas taxes for roadway reconstruction and repaving.
Other projects planned for future years include repairs to sidewalks, plus additional street repaving
that will be funded by local option gas taxes and major road reconstruction by discretionary sales
taxes. In addition, discretionary sales taxes will be used to replace heavy construction equipment
needed for maintaining City rights -of -way and transportation infrastructure.
Airport
The Sebastian Municipal Airport's infrastructure is being developed with the intent of attracting
economic development and stimulating the business climate in order to create jobs in the community.
The Master Plan serves as the guiding document for airport planning and a draft has been completed
that updates this important document. Land leases are a primary source of airport revenues and over
150 acres of property is available for lease, for both aviation and non -aviation businesses. Also
important are sales from a self -serve fueling facility. The Airport's limited resources continue to be
leveraged by aggressively seeking and obtaining grants from the Florida Department of Transportation
(FDOT) and Federal Aviation Administration (FAA) to develop the necessary infrastructure. Planned
improvements include upgrading the taxiways and constructing another hangar with grant funds
matched by funds from discretionary sales taxes.
Public Safety
The Police Department continues to participate in the accreditation program offered by the
commission for Florida Law Enforcement Accreditation. The designation encourages the Police
Department to establish goals and objectives with provisions for periodic updating; constant
reevaluation of whether departmental resources are being employed in accordance with agency goals,
objectives and mission; constant reevaluation of departmental policies and procedures as documented
in the department's written directive system; to accommodate correction of internal deficiencies and
inefficiencies before they become public problems; and the opportunity to reorganize without the
appearance of personal attacks. Standards and performance measurements resulting from the
accreditation process will continue to guide both Sebastian Police Department and city administration
in alleviating potentially adverse conditions.
5
Culture & Recreation
The City continued efforts to promote the "working waterfront" concept on the riverfront properties
that were purchased with grant funding, with City matching funds provided by discretionary sales
taxes. Additional grants were secured for installation of a baffle box, drainage improvements and
other enhancements. The City also put emphasis on refurbishing the playground equipment at all the
parks to insure it was safe for children to use. In other areas, the City continued supporting the use of
Lakefront Park for gatherings organized by various community groups, including the Clam Bake,
Chamber of Commerce and Art Club.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Sebastian for its
comprehensive annual financial report for the fiscal year ended September 30, 2017. This is a
prestigious national award -recognizing conformance with the highest standards for preparation of
state and local government financial reports. In order to be awarded a Certificate of Achievement, a
government must publish an easily readable and efficiently organized comprehensive annual financial
report. This report must satisfy both U.S. generally accepted accounting principles and applicable
legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe
that our current comprehensive annual financial report continues to meet the Certificate of
Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility
for another certificate.
The preparation of this report would not be possible without the dedicated service of the
Administrative Services department staff. Their efforts toward improving the accounting and financial
reporting systems has led to the improved quality of information reported to the City Council, State
and Federal agencies and the citizens of the City of Sebastian. We sincerely appreciate their
contributions.
Respectfully submitted,
Paul Carlisle
City Manager
Kenneth W. Killgore
Administrative Services Director
6
CITY OF SEBASTIAN, FLORIDA
Organizational Chart
CITIZENS OF
SEBASTIAN
CITY COUNCIL I
CITY
CLERK
I I
ADMINISTRATIVE PUBLIC
SERVICES FACILITIES STORMWATER
FINANCE &
ACCOUNTING MAINTENANCE
HUMAN
�► FLEET
RESOURCES
MANAGEMENT
MANAGEMENT
INFORMATION
FACILITIES
MAINTENANCE
SYSTEMS
PROJECT �► CEMETERY
ACCOUNTING
1
NTRA
�► PROCUREMEN �► AIRPORT
T
CITY
MANAGER
BOARDS &c
COMMISSIONS
I
CITY
ATTORNEY
I I
POLICE BUILDING COMMUNITY LEISURE GOLF
DEVELOPMENT SERVICES COURSE
ADMINISTRATION PLANNING AND
ZONING
*-0OPERATIONS
~� INVESTIGATIONS
~� DISPATCH
CODE
ENFORCEMENT
FACILITIES
RECREATION
PROGRAMS
7
CITY OF SEBASTIAN, FLORIDA
GFOA Certificate of Achievement
6�
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Sebastian
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2017
OA,W�� P. 2%e�
Executive Director/CEO
H.
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FINANCIAL SECTION
10
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11
►'- Rehmann
INDEPENDENT AUDITORS' REPORT
March 8, 2019
Honorable Mayor and
Members of City Council
City of Sebastian, Florida
Report on the Financial Statements
Rebmann Robson
5070 North Highway A1A,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the accompanying financial statements of the governmental activities, the business -
type activities, each major fund, and the aggregate remaining fund information of the City of
Sebastian, Florida (the "City"), as of and for the year ended September 30, 2018, and the related
notes to the financial statements, which collectively comprise the City's basic financial statements as
listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Independent Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of
the financial statements.
Rebmann is an independent member of Nexia International.
A member of
Nexia
international
CPAs & Consultants Wealth Advisors Corporate Investigators
12
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, the financial statements referred to previously present fairly, in all material respects,
the respective financial position of the governmental activities, the business -type activities, each major
fund, and the aggregate remaining fund information of the City of Sebastian, Florida as of
September 30, 2018, and the respective changes in financial position and cash flows, where applicable,
thereof and the respective budgetary comparison for the General Fund and each major special revenue
fund for the year then ended in conformity with accounting principles generally accepted in the United
States of America.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis and the schedules for the pension plans, as listed in the table of contents, be
presented to supplement the basic financial statements. Such information, although not a part of the
basic financial statements, is required by the Governmental Accounting Standards Board, who considers
it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to
the required supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of preparing
the information and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because
the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Sebastian, Florida's basic financial statements. The introductory
section, combining and individual fund financial statements and schedules, and 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 financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. The information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the information is fairly stated, in all material respects, in relation to
the basic financial statements as a whole.
13
The introductory section and statistical tables have not been subjected to the auditing procedures
applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or
provide any assurance on it.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 8,
2019, on our consideration of the City of Sebastian, Florida's internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
the City's internal control over financial reporting and compliance.
41C9 rL414- L LG
14
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15
MANAGEMENT'S DISCUSSION AND ANALYSIS
16
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
The City of Sebastian's (the "City") discussion and analysis is designed to (a) assist the reader in focusing on significant
financial issues, (b) provide an overview of the City's financial activity, (c) identify changes in the City's financial position,
(d) identify any material deviations from the financial plan, and (e) identify individual fund issues or concerns.
Since the Management's Discussion and Analysis (MDBA) is designed to focus on the current years activities, resulting
changes and currently known facts, please read it in conjunction with the Transmittal Letter and the City's financial
statements.
Financial Highlights
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at
the close of the fiscal year 2018 by $59,834,043 (net position). Of this amount, $872,374 (unrestricted net position)
may be used to meet the City's on -going obligations to citizens and creditors.
The City's total net position from governmental activities increased by $1,828,019 and from business -type activities
increased by $1,819,374. Net position was increased in governmental activities, primarily as a result of public
assistance payments received from FEMA and the State in connection with Hurricane Matthew. Net position for
business -type activities increased due to construction of capital assets at the Airport using substantial funding by
grants from Federal and State agencies.
Governmental funds reported a combined ending fund balance of $12,442,665, an increase of $1,894,268 from the
prior year. Almost 41% of this amount, $5,044,425 is unassigned and available for spending, a $981,520 increase from
fiscal year 2017, due to FEMA and State payments related to Hurricane Matthew.
The Golf Course Fund reported an increase in the deficit in net position attributed to an increase in the depreciation
on capital assets. The Airport Fund reported an improvement in the deficit in unrestricted net position resulting from
revenues recorded from capital contributions. The Building Enterprise fund reported an increase in unrestricted net
position, as a result of an improved levels of construction activity. In total, the City's enterprise funds reported a
positive increase in overall net position at the end of the year.
Overview of the Financial Statements
The annual report consists of a series of financial statements. The Statement of Net Position and the Statement of
Activities provide information about the activities of the City as a whole and present a longer -term view of the City's
finances. For governmental activities, the fund financial statements tell how these services were financed in the short-
term as well as what remains for future spending. Fund financial statements also report the City's operations in more
detail by providing information about the City's most significant funds. The notes to the financial statements provide
additional information that is essential to a full understanding of the data provided in the government -wide and fund
financial statements.
Government -wide Financial Statements. The government -wide financial statements are designed to provide readers
with a broad overview of the City's finances, in a manner similar to a private -sector business.
The statement of net position presents information on all of the City's assets, deferred outflows of resources, liabilities
and deferred inflows of resources, with the difference between them reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or
deteriorating.
The statement of activities presents information showing how the government's net position changed during the most
recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change
occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for
some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused
vacation leave).
17
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
Both of the government -wide financial statements distinguish functions of the City that are principally supported by taxes
and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a
significant portion of their costs through user fees and charges (business -type activities). The governmental activities of
the City include general government, public safety, physical and economical environment, transportation and cultural and
recreation. The business -type activities of the City include the golf course, airport and building operations.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that
have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City
can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government -wide financial statements. However, unlike the government -wide financial
statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as
well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in
evaluating a government's near -term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to
compare the information presented for governmental funds with similar information presented for governmental
activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact
of the government's near -term financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison
between governmental funds and governmental activities.
The City maintains numerous individual governmental funds. Information is presented separately in the governmental
funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for
the General Fund, Discretionary Sales Tax Fund, Riverfront Redevelopment Fund, and General Capital Projects, all of
which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated
presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining
statements and schedules elsewhere in this report.
The City adopts an annual appropriated budget for its General Fund and special revenue funds. Budgetary comparison
statements or schedules have been provided for these funds to demonstrate compliance with this budget.
Proprietary Funds. The City maintains one type of proprietary funds. Enterprise funds are used to report the same
functions presented as business -type activities in the government -wide financial statements. The City uses enterprise
funds to account for the golf course, airport, and buildings department.
Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail.
The proprietary fund financial statements provide separate information for the City's golf course, airport and buildings
department, which are major funds.
Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government -wide financial statements because the resources of
those funds are not available to support the City's own programs. The accounting used for fiduciary funds is much like
that used for proprietary funds.
Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of
the data provided in the government -wide and fund financial statements.
Other Information. In addition to the basic financial statements and accompanying notes, this report also presents
certain required supplementary information.
18
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
Government -wide Financial Analysis
As previously stated, net position may serve over time as a useful indicator of a government's financial position. In the
case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by
$59,834,043 at the close of the most recent fiscal year.
Governmental Activities
2018 2017
Current and other assets
$13,162,247
$11,632,834
Capital assets, net
40,153,980
40,636,026
Total assets
53,316,227
52,268,860
Deferred outflows of
resources
698,053
823,292
Long-term debt outstanding
4,080,752
4,661,794
Other liabilities
4,065,537
4,390,126
Total liabilities
8,146,289
9,051,920
Deferred inflows of
resources
229,315
229,575
Net position
Net investment in
capital assets
37,568,980
37,461,026
Restricted
6,419,900
5,113,543
Unrestricted
1,649,796
1,236,088
Total net position
$45,638,676
$43,810,657
Net Position
Business -type Activities
2018 2017
$ (387,889) $ (527,648)
15,178,956 13,639,422
14,791,067 13,111,774
434,845 488,219
160,855 247,562
595,700 735,781
14,972,789 13,384,969
(777,422) (1,008,976)
$ 14,195,367 $12,375,993
Total
2018 2017
$12,774,358 $11,105,186
55,332,936 54,275,448
68,107,294 65,380,634
698,053 823,292
4,515,597
5,150,013
4,226,392
4,637,688
8,741,989
9,787,701
229,315
229,575
52,541,769
6,419,900
872,374
$59,834,043
50,845,995
5,113, 543
227,112
$ 56,186, 650
A substantial portion of the City's net position, $52,541,769 (87.8 percent), reflects its investment in capital assets (e.g.,
land, buildings, machinery and equipment), less any related outstanding debt used to acquire those assets. The City uses
these capital assets to provide services to citizens; consequently, these assets are not available for future spending.
Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources
needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to
liquidate these liabilities.
An additional portion of the City's net position of $6,419,900 (10.7 percent) represents resources that are subject to
external restrictions on how they may be used. The City may use the remaining balance of unrestricted net position of
$872,374 (1.5 percent) to meet its ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position, for
the government as a whole and for its separate governmental activities. Unrestricted net position was negative for
business -type activities as a whole, primarily due to the substantial investments that have continued to be made in capital
assets.
WA
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
Change in Net Position
Governmental Activities
Business -type
Activities
Total
2018
2017
2018
2017
2018
2017
Revenues
Program revenues:
Charges for services
$ 1,657,296
$ 1,557,250
$ 2,752,000
$ 2,306,210
$ 4,409,296
$ 3,863,460
Operating grants
1,776,070
250,292
115,907
116,055
1,891,977
366,347
Capital grants
181,050
947,274
2,120,953
1,566,737
2,302,003
2,514,011
General revenues:
Property taxes
4,153,194
4,147,115
-
-
4,153,194
4,147,115
Other taxes
2,808,172
5,945,386
2,808,172
5,945,386
Intergovernmental
6,887,664
2,616,522
6,887,664
2,616,522
Other
1,845,378
1,697,286
8,234
10,787
1,853,612
1,708,073
Total revenues
19,308,824
17,161,125
4,997,094
3,999,789
24,305,918
21,160,914
Expenses
General government
3,926,479
3,379,369
-
-
3,926,479
3,379,369
Public safety
6,227,299
6,549,037
6,227,299
6,549,037
Physical environment
3,431,933
3,769,377
3,431,933
3,769,377
Transportation
1,949,882
2,279,149
1,949,882
2,279,149
Economic environment
238,597
106,577
238,597
106,577
Cultural and recreation
1,279,635
1,326,245
1,279,635
1,326,245
Interest and fiscal
charges
56,523
63,141
56,523
63,141
Golf course
-
-
1,555,853
1,537,332
1,555,853
1,537,332
Airport
1,328,258
1,361,134
1,328,258
1,361,134
Building
664,066
586,752
664,066
586,752
Total expenses
17,110,348
17,472,895
3,548,177
3,485,218
20,658,525
20,958,113
Change in net position,
before transfers
2,198,476
(311,770)
1,448,917
514,571
3,647,393
202,801
Transfers
(370,457)
(588,809)
370,457
588,809
-
-
Change in net position
1,828,019
(900,579)
1,819,374
1,103,380
3,647,393
202,801
Net position, beginning
of year
43,810,657
44,711,236
12,375,993
11,272,613
56,186,650
55,983,849
Net position, end of year
$45,638,676
$43,810,657
$ 14,195,367
$12,375,993
$59,834,043
$56,186,650
The City's net position increased by $3,647,393
during the current fiscal year.
The primary
reason for the increase in net
position for governmental activities
is related to payments received that were
related to Hurricane Matthew.
For business.
type activities, the increase in net position
is related to investments made
in capital assets made possible by capital
grants received for improvements at the Airport.
20
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
Governmental Activities. Governmental activities increased the City's net position by $1,828,019 as compared to the
prior year decrease of $900,579. Key elements of this decrease are as follows:
A decrease in expenses of $362,547 due lesser outlays for Hurricane Irma than recorded on Hurricane Matthew.
An increase in general revenues of $601,767, mostly from sales taxes and franchise fees.
An increase in program revenues of $1,545,932 due to payments received on Hurricane Matthew.
A change in transfers of ($218,352) caused by less transfers to the enterprise funds.
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
Expenses and Program Revenues - Governmental Activities
General Public safety Physical
government environment
Intergovern mental
36%
■ Expenses
■ Program Revenues
Transportation Economic Cultural and Interest and
environment recreation fiscal charges
Revenues by Source - Governmental Activities
Other Charges for services
3%_ go/
Othertaxes
21%
sting grants
9%
.apital grants
1%
Property taxes
21%
21
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
Business -type Activities. Business -type activities increased the City's net position by $1,819,374. The key elements of
this increase are as follows:
An increase in expenses of $62,959 primarily in salaries, wages and employee benefits.
A decrease in general revenues of $2,553 due to a reduction in interest earnings.
An increase in program revenues of $999,858 from an increase in capital grants, building permits and golf course fees.
A change in transfers in of ($218,352) from less construction at the golf course being funded by other funds.
Expenses and Program Revenues - Business -type Activities
31000,000
21500,000
21000,000
11500,000
11000,000
500,000
Golf course
Capital grants
43%
■ Expenses
■ Program Revenues
Airport
Revenues by Source - Business -type Activities
Operating grants and
other
Building
Charges for services
55%
22
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
Financial Analysis of the City's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance -related legal
requirements.
Governmental Funds. The focus of the City's governmental funds is to provide information on near -term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements.
In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for
spending at the end of the fiscal year.
As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of
$12,442,665, an increase of $1,894,268 from the prior year. Of this amount, 41 percent ($5,044,425) constitutes
unassigned fund balance, which is available for spending at the City's discretion. The remainder of fund balance is
classified as one of the following: A) Nonspendable for 1) inventories and prepaids, 2) long-term cash advances, or 3) is
nonspendable as permanent fund corpus for cemetery perpetual care; B) Restricted for capital projects or due to debt
service and special revenue fund designations; C) is committed for development by local ordinance; or D) has been
assigned for other specific uses in the City's general operations.
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned fund balance of
the General Fund was $5,047,473 while total fund balance amounted to $5,373,381. As a measure of the General Fund's
liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures.
Unassigned fund balance represents 40.4 percent of total General Fund expenditures, while total fund balance represents
43.0 percent of that same amount.
The fund balance of the City's General Fund increased by $866,235 during the current fiscal year, as compared to the
$1,304,282 decrease reported in the prior fiscal year. Key factors in this change are as follows:
Due to a reduction in the millage, property tax revenues decreased by $18,212.
Charges for services increased by $78,295.
Intergovernmental increased by $1,580,239.
Public utility taxes increased by $99,192.
Franchise fees increased by $45,389.
All other revenues increased by $91,719.
Transfers in from other funds increased by $41,072.
Transfers out to other funds decreased by $1,537,561.
Expenditures increased by $1,284,738.
The General Fund originally budgeted for no changes in the fund balance. The actual increase in fund balance was
$866,235. Significant changes in budgetary variances are as follows:
Property tax revenues were slightly less than budgeted due to reductions in property values from the values used to
calculate the budgeted revenue, with over 96% of the tax roll being collected. 96% of the tax roll is budgeted as being
collected, based on experience. No less than 95% must be budgeted per Florida statutes.
Intergovernmental revenue had a positive budgetary variance from unbudgeted receipts from Hurricane Matthew
payments.
General Fund expenditures had an overall favorable budgetary variance of $127,373, which was just a 1.1% difference
from the originally budgeted total.
Transfers out had the largest budgetary variance due to transfers made to cover the unanticipated expenditures on
debris removal and facility repairs caused by Hurricane Irma.
The Discretionary Sales Tax revenue special revenue fund has a total fund balance $3,554,598, an increase from the
$2,643,877 total fund balance of the prior year. Funds are restricted for projects that are planned in future years.
23
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
The Riverfront Redevelopment Fund ended the year with $423,814 in fund balance, as a result of expenditures on
economic development.
The General Capital Projects Fund had been fully reimbursed for expenditures by year end, which resulted in a zero fund
balance.
Proprietary Funds. The City's proprietary fund financial statements provide the same type of information found in the
government -wide financial statements, but in more detail.
The total net position of the golf course fund at the end of the fiscal year amounted to a deficit of $35,247, while the
unrestricted net position (deficit) amounted to ($1,859,752). Compared to the prior year in the same category, net
position decreased from the prior year and the unrestricted net position (deficit) changed from ($1,681,678) to
($1,859,752). This is mainly due to the increase in noncurrent assets recorded for the fiscal year.
The total net position of the airport fund at the end of the fiscal year amounted to $12,576,599, while the unrestricted
net position (deficit) amounted to ($514,253). Compared to the prior year in the same category, net position has increased
by $1,594,163 while the unrestricted net position (deficit) has changed from ($630,048) to ($514,253). The improvement
in the unrestricted net position (deficit) is mainly due to a reduction in the amount of operating loss.
The total net position of the building fund at the end of the fiscal year amounted to $1,654,015. This is an increase of
$282,835 from the prior year, which was primarily due to the continuation of healthy levels of operating income.
Other factors concerning the finances of these three funds have already been addressed in the discussion of the City's
business -type activities.
24
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
Budgetary Highlights
Over the course of the fiscal year, the City Council formally approved revisions to the City budget four times. These
budget adjustments fell into four major categories. The first includes amendments to allocate funds for extraordinary and
unexpected expenditures from Reserves, or to account for unexpected revenues and set up the corresponding
appropriation. The second includes new allocations funded by transfers from the Equipment Et Facilities REtR Reserve. The
third includes project transfers to cancel or close out capital projects or reallocate funds between them to address budget
shortages due to higher bids than anticipated and/or other unanticipated expenditures. The fourth includes transfers to
address budget shortages in operating budget accounts resulting from properly classifying charges or for unanticipated
expenditures. The main components of the increases are as follows:
Amendments
$2,279,952 to allocate grant revenues to the Taxiway "C" Construction and Security Systems projects.
$800,000 to allocate DST and CRA Reserves for the purchase of the 1215 Indian River Drive property.
$149,500 adjustment to cover the costs of City Manager payouts and recruitment of a new City Manager.
$128,000 to allocate General Fund Reserves to Police overtime and pension accounts.
$49,711 to reallocate funds for incentives and bonuses to the Department accounts where they were charged.
$9,651 to allocate Recreation Impact Fee Reserves for additional improvements to the Community Center.
$17,853 to allocate Building Fund Reserves to replace an Inspector pickup truck.
$40,000 to allocate Cemetery Trust Funds toward the Cemetery Sand Hill Expansion project.
$13,000 adjustments to appropriate Arden Greer donation revenue to purchases in the Police Department.
$1,000 to allocate a donation for the purchase of a sound system for the Community Center.
General Fund Equipment Et Facilities REtR Reserve Allocations
$28,053 to use REtR Reserve to replace broken or worn out equipment items.
$118,331 to use REtR Reserve for replacement of unbudgeted air conditoning units.
$64,687 to use REtR Reserve for other unbudgeted facility repairs or replacements.
Project Budget Transfers
$1,125,086 adjustments for uncompleted projects carried forward from the prior years.
$169,738 adjustments between projects.
$75,368 adjustments to reduce project revenues and budget allocations.
$10,400 adjustments to project costs for trade in values.
$123,500 adjustments to close out a number of projects.
Operating Budget Transfers
$130,357 adjustment to merge the Audio Visual Division into the MIS Division.
$332,164 adjustment to merge the Engineering Division into the Public Facilities Division.
$343,163 adjustment between Public Facilities and Stormwater accounts to reflect personnel reassignments.
$250,164 adjustment between Departmental accounts to cover unexpected expenditures or overages.
$161,812 adjustment between Health Insurance accounts to make budget changes match the payroll system.
25
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
During the fiscal year, total General Fund actual expenditures were $127,373 less than final amended budgetary
estimates. The overall variance on revenues and expenditures resulted in an increase of $866,235 to existing fund
balances. This was due to the payments received on Hurricane Matthew, which were somewhat offset by expenditures
incurred on Hurricane Irma.
Capital Asset and Debt Administration
Capital Assets. At the end of fiscal year 2018, the City had $55,337,561 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 $1,062,113, or 2.0%, over last
year. The following table illustrates the changes in capital assets. Additional information regarding the City's capital
assets can be found in the Notes to the Financial Statements section of the CAFR.
Capital Assets (Net of Depreciation)
Governmental Activities
Business -type
Activities
Total
2018
2017
2018
2017
2018
2017
Land
$ 9,123,041
$ 8,391,050
$ 9,060
$ 19,436
$ 9,132,101
$ 8,410,486
Buildings
7,992,590
7,614,058
7,272,414
7,254,214
15,265,004
14,868,272
Improvements
2,739,476
2,641,453
1,410,023
1,511,220
4,149,499
4,152,673
Equipment
2,223,479
2,539,466
657,034
620,309
2,880,513
3,159,775
Infrastructure
17,886,635
19,068,110
5,774,197
3,914,198
23,660,832
22,982,308
Construction in progress
188,759
381,889
56,228
320,045
244,987
701,934
Total capital assets, net
$40,153,980
$40,636,026
$ 15,178,956
$13,639,422
$55,332,936
$54,275,448
Governmental activities had the following major changes during the fiscal year:
An increase in Land due to the purchase of a property.
An increase in Buildings mainly due to the amount of facility renovations during the fiscal year.
An increase in Improvements mainly due to the amount of capital renovations.
Decreases in Equipment and Infrastructure mainly due to depreciation in excess of additions.
An increase in Construction in Progress due to completing construction of the Police Evidence Garage and Working
Waterfront Restrooms.
Business -type activities had the following major changes during the fiscal year:
An increase in Buildings due to the completion of Hangar "C".
An increase in Equipment due to additional purchases.
An increase in Infrastructure mainly due to the completion of projects.
A decrease in Construction in Progress due to the completion of projects.
Long-term Debt. At the end of the current fiscal year, the City had total long-term debt outstanding of $4,515,597. Of
this amount, $2,585,000 consist of notes pledging specific revenues to the repayment of the debt. More detailed
information regarding these activities and funds can be found in the Notes to the Financial Statements section of the
CAFR.
26
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
Total Long-term Debt
Governmental Activities
Business -type Activities
Total
2018
2017
2018 2017
2018
2017
Notes payable
$ 2,585,000
$ 3,175,000
$ - $ -
$ 2,585,000 $
3,175,000
Compensated absences
1,404,552
1,395,594
228,678 233,766
1,633,230
1,629,360
Pollution remediation
91,200
91,200
- -
91,200
91,200
Capital lease
-
-
206,167 254,453
206,167
254,453
Total
$ 4,080,752
$ 4,661,794
$ 434,845 $ 488,219
$ 4,515,597 $
5,150,013
The City's total debt decreased by $634,416 (12.32%) during the current fiscal year. The net decrease was attributable to
annual principal payments that occurred during the year.
The City's debt is primarily bank notes which are not rated by AAA rated insurance agencies. Other obligations of the City
include accrued vacation pay and sick leave.
Economic Factors and Next Year's Budget and Rates
The City's elected and appointed officials considered many factors when setting the next fiscal year 2019 budget, tax
rates, and fees that will be charged for the business -type activities. One of those factors is the economy. Sebastian's local
economy consists largely of retail and service industries. Less than one percent is devoted to industrial activities.
Construction of new homes is the largest single business in the area. Some of the largest retail stores include Publix
Supermarket and Wal-Mart Stores, Inc.0 The Indian River County unemployment rate in September 2018 was 3.9 percent
and less than the higher levels of previous years, which is a positive sign and analogous to the economic pattern existing
throughout the state and nation.
The City experienced a 9.34% overall increase in property values for 2019. The millage of 3.1514 was levied for taxes to
be recorded in fiscal year 2019 that will essentially provide the equivalent revenue from property taxes as received in
fiscal year 2018.
The Golf Course reported more revenues from fees in 2018, primarily due to not having the temporary closures of greens
during reconstruction that occurred during 2017. Although its net position improved with the large investment in capital
assets, those investments were primarily accomplished by advances from the Building Fund. The City anticipates the
investments made will result in an increase in customers that will generate higher revenues and enable the advances to be
repaid.
Sizable operating losses for the Airport are primarily the result of depreciation on capital assets. The City actively pursues
grant funds for construction new facilities that can generate additional rental revenues.
With a good level of revenues from building permit fees, the Building Enterprise Fund continued to report a positive
change in net position. There are signs that steady activity in the local housing market is continuing, which is
encouraging.
Requests for Information
This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general
overview of the City's finances and to show the City's accountability for the money it receives. If you have questions about
this report or need additional information, contact the Administrative Services Department at City of Sebastian, 1225 Main
Street, Sebastian, Florida 32958.
27
BASIC FINANCIAL STATEMENTS
28
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WA
CITY OF SEBASTIAN, FLORIDA
Statement of Net Position
September 30, 2018
Assets
Cash and cash equivalents
Restricted cash and cash equivalents
Investments
Permanently restricted investments
Receivables
Internal balances
Prepaid items
Inventories
Deposits held in escrow
Capital assets not being depreciated
Capital assets being depreciated, net
Total assets
Deferred outflows of resources
Deferred pension amounts
Liabilities
Accounts payable and accrued liabilities
Accrued interest payable
Unearned revenues
Long-term liabilities:
Due within one year
Due in more than one year
Net pension liability (due in more than one year)
Total liabilities
Deferred inflows of resources
Deferred pension amounts
Net position
Net investment in capital assets
Restricted for:
Debt service
Perpetual care:
Nonexpendable
Special revenue uses:
Infrastructure improvements
Redevelopment expenses
Stormwater expenses
Law enforcement events
Unrestricted (deficit)
Total net position
Primary Government
Governmental Business -type
Activities Activities Total
$ 5,946,524 $ 506,004 $ 6,452,528
583,211
-
583,211
3,151,270
119,189
3,270,459
888,402
-
888,402
1,066,597
296,018
1,362,615
1,356,391
(1,356,391)
-
128,836
23,924
152,760
41,016
21,765
62,781
-
1,602
1,602
9,311,800
65,288
9,377,088
30,842,180
15,113,668
45,955,848
53,316,227
14,791,067
68,107,294
698,053
-
698,053
652,370
79,235
731,605
21,950
-
21,950
67,212
81,620
148,832
720,845
57,314
778,159
3,359,907
377,531
3,737,438
3,324,005
-
3,324,005
8,146,289
595,700
8,741,989
229,315
-
229,315
37,568,980 14,972,789 52,541,769
151,893
996,875
151,893
996,875
4,107,942
4,107,942
423,814
423,814
618,069
618,069
121,307
121,307
1,649,796
(777,422) 872,374
$ 45,638,676 $ 14,195,367 $ 59,834,043
The accompanying notes are an integral part of these basic financial statements.
30
CITY OF SEBASTIAN, FLORIDA
Statement of Activities
For the Year Ended September 30, 2018
Functions / Programs
Primary government
Governmental activities:
General government
Public safety
Physical environment
Transportation
Economic environment
Cultural and recreation
Interest and fiscal charges
Total governmental activities
Business -type activities:
Golf course
Airport
Building
Total business -type activities
Total primary government
Expenses
$ 3,926,479 $
6,227,299
3,431,933
1,949,882
238,597
1,279,635
56,523
17,110,348
Program Revenues
Operating Capital Net
Charges Grants and Grants and (Expense)
for Services Contributions Contributions Revenue
466,261 $ 1,531,139 $
74,216 232,023
1,064,659 -
- 12,908
52,160
1,657,296 1,776,070
- $ (1,929,079)
40,000 (5,881,060)
- (2,367,274)
(1,936,974)
- (238,597)
141,050 (1,086,425)
- (56,523)
181,050 (13,495,932)
1,555,853 1,257,047 98,605 - (200,201)
1,328,258 583,310 - 2,120,953 1,376,005
664,066 911,643 17,302 - 264,879
3,548,177 2,752,000 115,907 2,120,953 1,440,683
$ 20,658,525 $ 4,409,296 $ 1,891,977 $ 2,302,003 $ (12,055,249)
continued...
31
CITY OF SEBASTIAN, FLORIDA
Statement of Activities
For the Year Ended September 30, 2018
Changes in net position
Net revenue (expense)
General revenues:
Property taxes, levied for general purposes
Public utility taxes
Franchise fees
Intergovernmental
Interest earnings
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
Net position, beginning of year
Net position, end of year
Primary Government
Governmental Business -type
Activities Activities Total
$ (13,495,932) $ 1,440,683 $ (12,055,249)
4,153,194
4,153,194
2,808,172
2,808,172
1,316,792
1,316,792
6,887,664
-
6,887,664
216,185
8,234
224,419
312,401
-
312,401
(370,457)
370,457
-
15,323,951
378,691
15,702,642
1,828,019
1,819,374
3,647,393
43,810,657
12,375,993
56,186,650
$ 45,638,676 $
14,195,367
$ 59,834,043
concluded.
The accompanying notes are an integral part of these basic financial statements.
32
CITY OF SEBASTIAN, FLORIDA
Balance Sheet
Governmental Funds
September 30, 2018
General
Discretionary
Riverfront
Capital
General
Sales Tax
Redevelopment
Projects
Assets
Cash and cash equivalents
$
2,582,497
$
1,862,531
$
324,023
$
41,756
Investments
1,810,264
818,302
100,173
-
Accounts receivable, net
312,724
-
-
Due from other funds
745,800
-
Due from other governments
330,817
328,174
Deposits held in escrow
-
-
Inventories
41,016
Prepaid items
128,836
-
Advance to other funds
65,000
545,591
-
-
Total assets
$
6,016,954
$
3,554,598
$
424,196
$
41,756
Liabilities
Accounts payable and accrued liabilities
$
440,924
$
-
$
382
$
41,756
Due to other governments
135,437
-
-
Unearned revenue
67,212
-
-
Total liabilities
643,573
-
382
41,756
Fund balances
Nonspendable
234,852
545,591
-
-
Restricted
77,185
3,009,007
423,814
Committed
-
-
-
Assigned
13,871
Unassigned (deficit)
5,047,473
-
-
Total fund balances
5,373,381
3,554,598
423,814
-
Total liabilities and fund balances
$
6,016,954
$
3,554,598
$
424,196
$
41,756
The accompanying notes are an integral part of these basic financial statements.
33
Nonmajor Total
Governmental Governmental
Funds Funds
$ 1,718,928 $ 6,529,735
1,310,933 4,039,672
- 312,724
- 745,800
94,882 753,873
41,016
128,836
610,591
$ 3,124,743 $ 13,162,247
$ 33,871 $ 516,933
- 135,437
67,212
33,871 719,582
996,875
1,777,318
1,389,378
4,899,384
707,667
707,667
-
13,871
(3,048)
5,044,425
3,090,872 12,442,665
$ 3,124,743 $ 13,162,247
34
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35
CITY OF SEBASTIAN, FLORIDA
Reconciliation
Fund Balances for Governmental Funds
to Net Position of Governmental Activities
September 30, 2018
Fund balances - total governmental funds $ 12,442,665
Amounts reported for governmental activities in the statement of
net position are different because:
Capital assets used in governmental activities are not financial resources,
and therefore are not reported in the funds.
Capital assets not being depreciated 9,311,800
Capital assets being depreciated, net 30,842,180
Certain liabilities, such as notes payable, are not due and payable
in the current period, and therefore are not reported in the funds.
Notes payable (2,585,000)
Compensated absences (1,404,552)
Pollution remediation liability (91,200)
Accrued interest on long-term debt (21,950)
Certain pension -related amounts, such as the net pension liability and deferred amounts
are not due and payable in the current period or do not represent current financial
resources and therefore are not reported in the funds.
Net pension liability (3,324,005)
Deferred outflows related to the net pension liability 698,053
Deferred inflows related to the net pension liability (229,315)
Net position of governmental activities $ 45,638,676
The accompanying notes are an integral part of these basic financial statements.
36
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2018
General
Discretionary Riverfront Capital
General Sales Tax Redevelopment Projects
Revenues
Taxes:
Property
$ 3,786,662 $
$
366,532 $
Public utility
2,808,172
-
Franchise fees
1,316,792
Licenses and permits
165,922
Intergovernmental
4,388,228
3,417,586
Impact fees
-
-
Chargesforservices
391,055
Fines
47,701
-
-
Investment earnings
89,571
56,847
10,616
Contributions and donations
45,270
-
-
Otherrevenues
262,625
-
36,000
Total revenues
13,301,998
3,474,433
413,148
Expenditures
Current:
General government
3,490,893
-
1,990
Public safety
5,593,859
-
Physical environment
1,287,644
Transportation
1,027,928
-
Economic environment
-
238,597
Culture and recreation
875,172
-
Debt service:
Principal
-
Interest and fiscal charges
-
Capital outlay
228,879
-
Total expenditures
12,504,375
-
240,587
Revenues over(under)expenditures
797,623
3,474,433
172,561
Other financing sources (uses)
Transfers in
704,641
-
-
Transfers out
(636,029)
(2,563,712)
(289,495)
Total other financing sources (uses)
68,612
(2,563,712)
(289,495)
Net changes in fund balances
866,235
910,721
(116,934)
Fund balances, beginning of year
4,507,146
2,643,877
540,748
Fund balances, end of year
$ 5,373,381 $
3,554,598 $
423,814 $
The accompanying notes are an integral part of these basic financial statements.
10,400
10,400
635,263
1,342,854
1,978,117
(1,967,717)
1,988,267
1,988,267
20,550
(20,550)
37
Nonmajor Total
Governmental Governmental
Funds Funds
$
$ 4,153,194
2,808,172
1,316,792
165,922
842,250
8,648,064
141,050
141,050
1,052,068
1,443,123
550
48,251
59,151
216,185
-
55,670
13,776
312,401
2,108, 845 19, 308, 824
3,492,883
66,002 5,659,861
272,425 2,195,332
51,581 1,079,509
- 238,597
875,172
590,000 590,000
56,523 56,523
1,284,489 2,856,222
2,321,020 17,044,099
(212,175) 2,264,725
1,734,129
4,427,037
(1,308,258)
(4,797,494)
425,871
(370,457)
213,696
1,894,268
2,877,176
10,548,397
$ 3,090,872
$ 12,442,665
38
CITY OF SEBASTIAN, FLORIDA
Reconciliation
Net Changes in Fund Balances of Governmental Funds
to Change in Net Position of Governmental Activities
For the Year Ended September 30, 2018
Net change in fund balances - total governmental funds $ 1,894,268
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense.
Capital assets purchased/constructed 2,856,222
Depreciation expense (3,263,778)
Loss on disposal of capital assets (74,490)
Note proceeds provide current financial resources to governmental funds
in the period issued, but issuing notes increases long-term liabilities in the
statement of net position. Repayment of note principal is an expenditure in the
governmental funds, but the repayment reduces long-term liabilities in the
statement of net position.
Principal payments on long-term liabilities 590,000
Some expenses reported in the statement of activities do not require the use of
current financial resources and therefore are not reported as expenditures in
governmental funds.
Change in the accrual for compensated absences (8,958)
Change in the accrual for other postemployment benefits 33,757
Change in the net pension liability and related deferred amounts (199,002)
Change in net position of governmental activities $ 1,828,019
The accompanying notes are an integral part of these basic financial statements.
cW
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - General Fund
For the Year Ended September 30, 2018
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Taxes:
Property
$ 3,799,624
$ 3,799,624
$ 3,786,662
$ (12,962)
Public utility
2,751,498
2,751,498
2,808,172
56,674
Franchise fees
1,333,454
1,333,454
1,316,792
(16,662)
Licenses and permits
138,500
138,500
165,922
27,422
Intergovernmental
2,608,036
2,796,959
4,388,228
1,591,269
Charges for services
404,140
404,140
391,055
(13,085)
Fines
55,000
55,000
47,701
(7,299)
Investment earnings
34,431
34,431
89,571
55,140
Contributions and donations
12,200
36,200
45,270
9,070
Otherrevenues
182,000
187,771
262,625
74,854
Total revenues
11,318,883
11,537,577
13,301,998
1,764,421
Expenditures
Current:
General government
3,417,264
3,598,817
3,490,893
(107,924)
Public safety
5,226,339
5,539,935
5,593,859
53,924
Physical environment
1,096,634
1,329,555
1,287,644
(41,911)
Transportation
1,270,856
1,048,595
1,027,928
(20,667)
Culture and recreation
901,176
900,679
875,172
(25,507)
Capital outlay
45,000
214,167
228,879
14,712
Total expenditures
11,957,269
12,631,748
12,504,375
(127,373)
Revenues over(under)expenditures
(638,386)
(1,094,171)
797,623
1,891,794
Other financing sources (uses)
Transfers in
729,638
1,259,475
704,641
(554,834)
Transfers out
(91,252)
(165,304)
(636,029)
(470,725)
Total other financing sources (uses)
638,386
1,094,171
68,612
(1,025,559)
Net changes in fund balance
-
-
866,235
866,235
Fund balance, beginning of year
4,507,146
4,507,146
4,507,146
-
Fund balance, end of year
$ 4,507,146
$ 4,507,146
$ 5,373,381
$ 866,235
The accompanying notes are an integral part of these basic financial statements.
40
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Discretionary Sales Tax Special Revenue Fund
For the Year Ended September 30, 2018
Revenues
Intergovernmental
Investment earnings
Total revenues
Other financing sources (uses)
Transfers in
Transfers out
Total other financing sources (uses)
Net changes in fund balance
Fund balance, beginning of year
Fund balance, end of year
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
$ 3,187,750
$ 3,187,750
$ 3,417,586
$ 229,836
27,708
27,708
56,847
29,139
3,215,458
3,215,458
3,474,433
258,975
-
1,185,889
-
(1,185,889)
(3,215,458)
(4,401,347)
(2,563,712)
1,837,635
(3,215,458)
(3,215,458)
(2,563,712)
651,746
-
-
910,721
910,721
2,643,877
2,643,877
2,643,877
-
$ 2,643,877
$ 2,643,877
$ 3,554,598
$ 910,721
The accompanying notes are an integral part of these basic financial statements.
41
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Riverfront Redevelopment Special Revenue Fund
For the Year Ended September 30, 2018
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Taxes:
Property
$ 349,989
$ 349,989 $
366,532
$ 16,543
Investment earnings
1,878
1,878
10,616
8,738
Otherrevenues
36,000
36,000
36,000
-
Total revenues
387,867
387,867
413,148
25,281
Expenditures
Current:
General government
2,067
2,067
1,990
(77)
Economic environment
255,125
322,125
238,597
(83,528)
Total expenditures
257,192
324,192
240,587
(83,605)
Revenues over expenditures
130,675
63,675
172,561
108,886
Other financing sources (uses)
Transfers in
-
469,234
-
(469,234)
Transfers out
(439,234)
(289,495)
149,739
Total other financing sources (uses)
-
30,000
(289,495)
(319,495)
Net changes in fund balance
130,675
93,675
(116,934)
(210,609)
Fund balance, beginning of year
540,748
540,748
540,748
Fund balance, end of year
$ 671,423
$ 634,423 $
423,814
$ (210,609)
The accompanying notes are an integral part of these basic financial statements.
42
CITY OF SEBASTIAN, FLORIDA
Statement of Net Position
Proprietary Funds
September 30, 2018
Business -type Activities - Enterprise Funds
Golf
Course
Airport
Building
Total
Assets
Current assets:
Cash and cash equivalents
$ 64,412
$ 58,272
$ 383,320 $
506,004
Investments
-
-
119,189
119,189
Accounts receivable
385
-
385
Due from other governments
-
295,633
295,633
Inventories
12,820
8,945
-
21,765
Deposits held in escrow
493
616
493
1,602
Prepaid items
8,469
11,115
4,340
23,924
Total current assets
86,194
374,966
507,342
968,502
Noncurrent assets:
Advance to other funds
-
-
1,235,058
1,235,058
Capital assets:
Land
-
9,060
-
9,060
Buildings
718,983
8,728,972
9,447,955
Improvements other than buildings
1,183,568
1,681,260
-
2,864,828
Machinery and equipment
417,672
1,089,115
118,732
1,625,519
Infrastructure
1,438,540
9,596,026
-
11,034,566
Construction in process
-
56,228
56,228
Less accumulated depreciation
(1,728,091)
(8,069,809)
(61,300)
(9,859,200)
Total noncurrent assets
2,030,672
13,090,852
1,292,490
16,414,014
Total assets
2,116,866
13,465,818
1,799,832
17,382,516
Liabilities
Current liabilities:
Accounts payable and accrued liabilities
16,378
25,306
23,834
65,518
Due to other funds
535,800
210,000
-
745,800
Due to other governments
6,447
1,463
5,807
13,717
Unearned revenues
64,730
9,340
7,550
81,620
Current portion of compensated absences
2,801
1,041
3,476
7,318
Current portion of leases payable
49,996
-
-
49,996
Total current liabilities
676,152
247,150
40,667
963,969
Noncurrent liabilities:
Compensated absences, net of current portion
84,732
31,478
105,150
221,360
Advance from other fund
1,235,058
610,591
-
1,845,649
Leases payable
156,171
-
-
156,171
Total noncurrent liabilities
1,475,961
642,069
105,150
2,223,180
Total liabilities
2,152,113
889,219
145,817
3,187,149
Net position
Net investment in capital assets
1,824,505
13,090,852
57,432
14,972,789
Unrestricted (deficit)
(1,859,752)
(514,253)
1,596,583
(777,422)
Total net position
$ (35,247)
$ 12,576,599
$ 1,6547015 $
14,195,367
The accompanying notes are an integral part of these basic financial statements.
43
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds
For the Year Ended September 30, 2018
Operating revenues
Charges for fees and rents:
Building permit fees
Golf course fees
Rents
Otherrevenues
Intergovernmental
Total operating revenues
Operating expenses
Salaries, wages and employee benefits
Contractual services, materials and supplies
Depreciation
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses)
Investment income (loss)
Interest expense
Gain on sale of capital assets
Total nonoperating revenues (expenses)
Income (loss) before capital contributions and transfers
Capital contributions
Transfers in
Transfers out
Change in net position
Net position, beginning of year
Net position, end of year
Business -type Activities - Enterprise Funds
Golf
Course
1,229,330
17,592
10,125
50,000
1,307,047
347,580
985,998
214,170
1,547,748
(240,701)
Airport Building
$ 911,643 $
406,064
177,246
583,310 911,643
141,253
396,317
771,240
1,308,810
(725,500)
530,924
114,414
18,728
664,066
247,577
Total
911,643
1,229,330
423,656
187,371
50,000
2,802,000
1,019,757
1,496,729
1,004,138
3,520,624
(718,624)
(2,604)
10,838
8,234
(8,105)
(19,448)
-
(27,553)
48,605
17,302
65,907
40,500
(22,052)
28,140
46,588
(200,201)
(747,552)
275,717
(672,036)
-
2,120,953
-
2,120,953
149,695
220,762
7,118
377,575
(7,118)
-
-
(7,118)
(57,624)
1,594,163
282,835
1,819,374
22,377
10,982,436
1,371,180
12,375,993
(35,247)
$ 12,576,599 $
1,654,015
$ 14,195,367
The accompanying notes are an integral part of these basic financial statements.
44
CITY OF SEBASTIAN, FLORIDA
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2018
Cash flows from operating activities
Cash received from customers and users
Cash payments to suppliers
Cash payments for employee services
Net cash provided (used) by operating activities
Cash flows from noncapital financing activities
Interest paid on advance from other fund
Cash payments to other funds
Cash receipts from other funds
Net cash provided (used) by noncapital
financing activities
Cash flows from capital and related
financing activities
Repayment of long term debt
Acquisition and construction of capital assets
Proceeds from sale of capital assets
Receipts from capital contributions
Net cash provided (used) by capital and
related financing activities
Cash flows from investing activities
Purchase of investments
Investment income (loss)
Net cash provided (used) by investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
Business -type Activities - Enterprise Funds
Golf
Course
Airport
Building
Total
$ 1,315,871
$ 600,640
$ 912,088
$ 2,828,599
(1,048,278)
(422,867)
(110,381)
(1,581,526)
(353,585)
(146,310)
(526,324)
(1,026,219)
(85,992)
31,463
275,383
220,854
(8,105)
(19,448)
-
(27,553)
(7,118)
(80,000)
(211,740)
(298,858)
361,435
180,715
7,118
549,268
346,212
81,267
(204,622)
222,857
(48,286)
(48,286)
(320,032)
(2,345,376)
(18,108)
(2,683,516)
82,303
95,860
27,678
205,841
-
2,120,953
-
2,120,953
(286,015)
(128,563)
9,570
(405,008)
(2,243)
(2,243)
(2,696)
10,840
8,144
(2,696)
8,597
5,901
(25,795)
(18,529)
88,928
44,604
90,207
76,801
294,392
461,400
$ 64,412
$ 58,272 $
383,320
$ 506,004
continued...
45
CITY OF SEBASTIAN, FLORIDA
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2018
Cash flow from operating activities:
Operating income (loss) $
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:
Depreciation expense
Change in:
Accounts receivable
Due from other governments
Inventories
Prepaid items
Accounts payable and accrued liabilities
Due to other governments
Unearned revenues
Accrued compensated absences
Net other postemployment benefit obligation
Total adjustments
Net cash provided (used) by operating activities $
Business -type Activities - Enterprise Funds
Golf
Course Airport Building Total
(240,701) $ (725,500) $ 247,577 $ (718,624)
214,170
771,240
18,728
1,004,138
10,823
118
-
10,941
-
16,642
16,642
268
(3,265)
-
(2,997)
(2,148)
1,350
3,347
2,549
(60,400)
(24,635)
686
(84,349)
1,790
324
227
2,341
(3,789)
246
218
(3,325)
(5,588)
(4,838)
5,338
(5,088)
(417)
(219)
(738)
(1,374)
154,709
756,963
27,806
939,478
(85,992) $
31,463 $
275,383
$ 220,854
concluded.
The accompanying notes are an integral part of these basic financial statements.
46
CITY OF SEBASTIAN, FLORIDA
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2018
Assets
Cash and cash equivalents
Receivables:
Interest and dividends
Investments, at fair value:
Local government surplus trust funds investment pools
Money market funds
United States treasuries
United States agencies
Collateralized mortgage obligations
Unit Investment trusts
Municipal obligations
Domestic corporate bonds
Foreign corporate bonds
Domestic corporate equities
Foreign corporate equities
EFT equities
Real estate investment trust
Total investments
Total assets
Liabilities
Refunds payable
Net position
Restricted for pension benefits
Pension
Trust
Agency
Police
Officers'
Performance
Pension
Deposits
$ -
$ 1,750
31,326
- 92,340
561,632 -
106,381
442,181
1,082,401
111,257
162,443
1,256,896
372,130
9,714,680
625,661
8,960 -
691,372
15,135,994 92,340
15,167,320 $ 94,090
$ 15,167,320
The accompanying notes are an integral part of these basic financial statements.
$ 94,090
47
CITY OF SEBASTIAN, FLORIDA
Statement of Changes in Fiduciary Net Position
Fiduciary Fund - Pension Trust
For the Year Ended September 30, 2018
Additions
Contributions:
Employer
Plan members
State
Total contributions
Investment income:
Net increase in fair value of investments
Interest and dividends
Total investment income
Investment expenses
Net investment earnings
Total additions
Deductions
Benefits
Administrative expenses
Total deductions
Change in net position
Net position, beginning of year
Net position, end of year
Police
Officers'
Pension
$ 525,296
204,854
188,923
919,073
806,079
359,060
1,165,139
(136,590)
1,028,549
1,947,622
700,733
82,088
782,821
1,164,801
14, 002, 519
$ 15,167,320
The accompanying notes are an integral part of these basic financial statements.
48
This page intentionally left blank.
NOTES TO FINANCIAL STATEMENTS
50
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Sebastian (the "City"), a Florida Municipal Corporation, was incorporated in 1924 under
Sections 1826-1832 of the Revised Florida Statutes. The City has a population of 24,630 living in an area of
approximately 14.6 square miles. The governing body is a five member elected City Council with a mayor
elected from the five members. The City Council appoints the City Manager who is responsible for the
administration of all City services.
The financial statements of the City have been prepared in conformity with generally accepted
accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards
Board (GASB) is the accepted standard setting body for establishing governmental accounting and
financial reporting principles. The more significant of the City's accounting policies are described below.
Reporting Entity
As required by generally accepted accounting principles, these financial statements present the
government and its component units, entities for which the City is financially accountable. Blended
component units, although legally separate entities, are, in substance, part of the government's
operations and as such, data from these units are combined with data of the primary government.
Discretely presented component units, on the other hand, are reported in a separate column in the
government -wide financial statements to emphasize that they are legally separate from the government.
The City has no discretely presented component units.
Blended Component Units
Blended component units are legally separate entities that are from the City but so intertwined with the
City that they are, in substance, the same as the City. Discretely presented component units are entities
legally separate from the City but for which the City is financially accountable, or their relationship with
the City is such that exclusion would cause the City's financial statements to be misleading or
incomplete. The City has two component units that are blended with the primary government for
financial statement purposes because the component unit's governing body is substantially the same as
the City Council and/or there is a financial benefit/burden relationship between the primary government
and the component unit.
Community Redevelopment Agency (CRA) - The governing body of the CRA is identical to the Sebastian
City Council and there is a benefit/burden relationship to the City. The CRA is accounted for in a special
revenue fund entitled "Riverfront Redevelopment." F.S. Section 163.387(8) requires an independent audit
of the fund each fiscal year and a report of such audit. The City has presented the CRA as a major fund of
the City to satisfy this requirement simply due to the scope of the audit for a major fund being broader
than a non -major fund.
City of Sebastian Police Officers' Pension Plan - The City Council only appoints two of the five members
of the governing board, but it is financially responsible for funding the police officers' pension benefits.
The City of Sebastian Police Officers' Pension Trust Fund only exists to provide pension benefits to City of
Sebastian police officers. It is accounted for as a Pension Trust fund entitled "Police Officers' Pension."
51
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Government -wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the nonfiduciary activities of the primary government and its
component units. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business -type activities, which rely to a significant extent on fees
and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include (1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment and (2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds,
even though the latter are excluded from the government -wide financial statements. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred,
regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for
which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
Agency funds are custodial in nature and do not present results of operations or have a measurement
focus.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
government considers revenues to be available if they are collected within 60 days of the end of the
current fiscal period, except for expenditure -driven grants which must be collected within one year.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However,
debt service expenditures, as well as expenditures related to compensated absences and claims and
judgments, are recorded only when payment is due.
52
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Property taxes, intergovernmental revenue, licenses, and interest associated with the current fiscal
period are all considered to be susceptible to accrual and as such have been recognized as revenues of
the current fiscal period. All other revenue items are considered to be measurable and available only
when cash is received by the government.
The City reports the following major governmental funds:
The General Fund is the government's primary operating fund. It accounts for all the financial resources
of the general government, except those accounted for and reported in another fund.
The Discretionary Sales Tax Fund accounts for the financial resources used for infrastructure
improvements and equipment purchases.
The Riverfront Redevelopment Fund accounts for tax increment revenues that are legally restricted for
the redevelopment of the City's riverfront area.
The General Capital Projects Fund is used to account for and report financial resources that are
restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or
construction of capital facilities and other capital assets.
The City reports the following major proprietary funds:
The Golf Course Fund accounts for the activities of the municipal golf course.
The Airport Fund accounts for the activities of the municipality's general aviation airport.
The Building Fund accounts for the activities of the municipality's building department that enforces
state and local regulations pertaining to construction.
Additionally, the City reports the following fund types:
Special revenue funds are used to account for and report the proceeds of specific revenue sources that
are restricted or committed to expenditure for specified purposes other than debt service or capital
projects.
Debt service funds are used to account for and report financial resources that are restricted, committed,
or assigned to expenditure for principal and interest.
Capital projects funds are used to account for and report financial resources that are restricted,
committed, or assigned to expenditure for capital outlays, including the acquisition or construction of
capital facilities and other capital assets.
The permanent fund is used to record the activity and balance of the Cemetery Trust which provides
funds for perpetual care of cemetery lots.
53
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
The pension trust fund accounts for the activities of the Police Officer's Retirement System, which
accumulates resources for pension benefit payments to qualified police officers.
The performance deposits agency fund accounts for deposits placed by bidders and developers to
guarantee performance pursuant to bid or contract. These funds are held by the City as agent for
individuals and businesses.
As a general rule, the effect of interfund activity has been eliminated from the government -wide
financial statements. Exceptions to this general rule are payments in lieu of taxes and various other
functions of the government. Elimination of these charges would distort the direct costs and program
revenues reported for the various functions concerned. The General Fund provides certain central
services to other funds of the City which are presented as program expenses in the funds receiving
services. The related General Fund revenue has been netted against program expense in the government -
wide statement of activities.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of
the enterprise funds are charges to customers for sales and services. Operating expenses for enterprise
funds include the cost of sales and services, administrative expenses, and depreciation on capital assets.
All revenues and expenses not meeting this definition are reported as nonoperating revenues and
expenses.
Restricted net position represents resources that are subject to restrictions beyond the government's
control. The restrictions may be externally imposed or imposed by law. When both restricted and
unrestricted resources are available for use, it is the government's policy to use restricted resources first,
then unrestricted resources as they are needed.
Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Equity
Deposits and Investments
The City considers cash on hand and demand deposits, restricted cash deposits, and short-term
investments with maturities of three months or less when purchased to be cash for the statement of cash
flows. Cash in excess of current requirements is invested in various interest -bearing securities and
disclosed as part of the City's investments.
Investments consist of U.S. Treasury Securities, U.S. Government Agency Securities, common stock,
guaranteed investment contracts and the Local Government Surplus Funds Trust Fund Investment pool.
The Local Government Surplus Funds Trust Fund is administered by the Florida State Board of
Administration, which is not a registrant with the Securities and Exchange Commission. However, the
Board has adopted operating procedures consistent with the requirements for a 2a-7 fund or accounts. In
accordance with the regulations of 2a-7 like pools, the City's share of investments held at the State Board
of Administration are reported at amortized cost, which approximates fair value. This pool is regulated by
the State and the fair value of the position in the pool is the same as the value of the pool share.
Investment earnings are allocated to the participating funds at the end of each month based upon the
ratio of each participant's investment to the total pooled investments. Other investments, including the
Police Officers' Pension Fund, are reported at their fair value based on the quoted market price or the
best available information.
54
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Internal Balances
Transactions between funds that are representative of lending/borrowing arrangements outstanding at
the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of
interfund loans) or "advances to/from other funds" (i.e., the non -current portion of interfund loans). All
other outstanding balances between funds are reported as "due to/from other funds." Any residual
balances outstanding between the governmental activities and business -type activities are reported in the
government -wide financial statements as "internal balances."
Advances between funds are offset by nonspendable fund balance in General Fund and restricted fund
balance in other applicable governmental funds to indicate they are not available for appropriation and
are not expendable available financial resources.
Restricted Assets
Certain amounts reported as cash and cash equivalents are classified as restricted assets. These include
balances in the debt service funds that are set aside to meet bonded debt requirements, balances in the
capital projects funds to be used for the payment of project costs and balances in the Cemetery Fund
that are either not permitted to be spent or can only be spent for items incidental to cemetery
expansions. The amount of the Cemetery Fund investments is also classified as restricted assets and
reported as restricted investments.
Receivables and Payables
All trade and property tax receivables are shown net of an allowance for uncollectibles, as applicable.
Amounts due from other governments include amounts due from grantors for specific programs and
capital projects. Program grants and capital grants for capital assets are recorded as receivables and
revenues at the time reimbursable project costs are incurred. Revenues received in advance of project
costs being incurred are deferred. Receivables consist of trade receivables, due from other governments
and interest receivable and are recorded at the net realizable value. As of September 30, 2018, the City
has no allowance for doubtful accounts, since all receivables are considered collectible.
Other Assets
Inventories are valued at cost using the average cost method. Inventory in the General Fund consists of
materials and supplies held for consumption. The cost is recorded as an expenditure/expense at the time
the individual inventory items are consumed. Inventory in the Golf Course consists of supplies held for
resale and inventory in the Airport Fund consists of aviation fuel to be sold.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both the government -wide and fund financial statements.
55
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Capital Assets
Capital assets, which include land, buildings, improvements, equipment, and infrastructure assets (e.g.,
roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business -type
activities columns in the government -wide financial statements. The City defines capital assets as assets
with an initial, individual cost of more than $750 and an estimated useful life in excess of one year. Such
assets are recorded at historical cost, if purchased, and at estimated acquisition cost at date of gift, if
donated. Major additions are capitalized while maintenance and repairs that do not improve or extend
the life of the respective assets are expensed.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend asset lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business -type activities, if any, is included as
part of the capitalized value of the asset constructed.
Capital assets are depreciated using the straight-line method over the following estimated useful lives:
Years
Buildings and improvements 10-40
Public domain infrastructure 40-50
System infrastructure 15-30
Improvements other than buildings 10-40
Machinery, equipment and other 5-15
Airport runways 20
Deferred Outflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element represents a consumption of
net position that applies to future periods and so will not be recognized as an outflow of resources until
then. The City reports deferred outflows of resources related to the net pension liability.
Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation and sick leave
benefits and these are accounted for using the termination payment method. All vacation and sick leave
amounts are accrued in the government -wide and proprietary funds 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.
56
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Unearned Revenue
Governmental funds report unearned revenue in connection with resources that have been received, but
not yet earned.
Deferred Inflows of Resources
In addition to liabilities, the statement of financial position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element represents an acquisition of net
position that applies to future periods and so will not be recognized as an inflow of resources until that
time. The City reports deferred inflows of resources for changes in expected and actual investment
returns, assumptions and benefits provided in its pension plans.
Long-term Obligations
In the government -wide financial statements and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business -type activities, or proprietary fund type statement of net position.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as
other financing sources. Premiums received on debt issuances are reported as other financing sources
while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service expenditures.
Fund Equity
Governmental funds report nonspendable fund balance for amounts that cannot be spent because they
are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.
Restricted fund balance is reported when externally imposed constraints are placed on the use of
resources by grantors, contributors, or laws or regulations of other governments. Committed fund balance
is reported for amounts that can only be used for specific purposes pursuant to constraints imposed by
formal action of the City Council (the government's highest level of decision -making authority). A formal
resolution of the City Council is required to establish, modify, or rescind a fund balance commitment. The
City Council has the authority and reports assigned fund balance for amounts that are constrained by the
government's intent to be used for specific purposes, but are neither restricted nor committed.
Unassigned fund balance is the residual classification for the General Fund.
When the government incurs an expenditure for purposes for which various fund balance classifications
can be used, it is the government's policy to use restricted fund balance first, then committed fund
balance, assigned fund balance, and finally unassigned fund balance.
57
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows
of resources related to pensions, and pension expense, information about the fiduciary net position of the
plan and additions to/deductions from the plan fiduciary net position have been determined on the same
basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the benefit terms. Investments
are reported at fair value.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and assumptions that affect the
amounts reported in the financial statements and accompanying notes. Actual results may differ from
those estimates.
2. BUDGETARY INFORMATION
Budgets are prepared annually on a modified accrual basis with encumbrance accounting for all
governmental funds except the capital project funds, which are approved on a "life of the project basis",
and the permanent fund, which is not budgeted. All annual appropriations lapse at year end.
On or before the third Friday in May of each year, all agencies of the government submit requests for
appropriations to the government's City Manager so that a budget may be prepared. Before July 31, the
proposed budget is presented to the government's council for review. The council holds budget workshops
and public hearings and a final budget must be prepared and adopted no later than September 30.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is
employed as an extension of formal budgetary integration in the General, Special Revenue and Debt
Service funds. Encumbrances outstanding at year end are carried forward and reappropriated to the next
year's budget.
Actual results of operations presented in accordance with U.S. generally accepted accounting principles
(GAAP basis) and the City's accounting policies do not recognize encumbrances as expenditures until the
period in which the actual goods or services are received and a liability is incurred. It is necessary to
include budgetary encumbrances to reflect actual revenues and expenditures on a basis consistent with
the City's legally adopted budget.
The legal level of budgetary control is at the departmental level for the general fund and at the activity
level for special revenue funds. As reported on the General Fund budget and actual statement, there
were minor violations for the public safety department, capital outlay and transfers out accounts.
58
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
3. DEPOSITS AND INVESTMENTS
Following is a reconciliation of deposit and investment balances as of September 30, 2018:
Statement of Net Position
Cash and cash equivalents $ 6,452,528
Restricted cash and cash equivalents 583,211
Investments 3,270,459
Restricted investments 888,402
Statement of Fiduciary Net Position
Police Officers' Pension -
Investments 15,135,994
Agency funds:
Cash and cash equivalents 1,750
Investments 92,340
Total $ 26,424,684
Deposits and investments
Bank deposits -
Checking and savings accounts $ 7,035,059
Investments:
Investments, at fair value 4,251,201
Police officers' pension fund investments 15,135,994
Cash on hand 2,430
Total $ 26,424,684
Custodial Credit Risk - Deposits. Custodial credit risk is the risk that, in the event of a bank failure, the
City's deposits might not be returned. At September 30, 2018, the carrying amount of the City of
Sebastian's deposits with banks was $7,035,059 and the bank balance was $7,323,941. All the deposits
were covered by the FDIC or collateralized in accordance with the "Florida Security for Public Deposits
Act". Under the Act, every qualified public depository shall deposit with the Treasurer eligible collateral
having a market value equal to 50% of the average daily balance for each month that all public deposits
are in excess of any applicable deposit insurance. If the public deposits exceed the total amount of the
regulatory capital accounts of a bank or the regulatory net worth of a savings association, the required
collateral shall have a market value equal to 125% of the deposits.
Custodial Credit Risk - Investments. On April 23, 2003, Sebastian City Council formally adopted an
investment policy pursuant to Section 218.415, Florida Statutes that established permitted investments,
asset allocation limits and issuer limits, credit ratings requirements and maturity limits for all
investments except the Pension Trust Funds. The City maintains a common cash and investment pool for
the use of all funds, except the Pension Trust Funds, which are held with third party trustees and are
governed by rules established by Florida Statute Chapter 185.
59
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Investment holdings during the year included United States Government Agencies which were reported at fair value in accordance
with GASB Statement No.31 "Accounting and Financial Reporting for Certain Investments and for External Investment Pools". These
investments were held in trust by the City's bank depository in the City's name or by the Custodian of the Pension Trust Funds.
Section 218.415, Florida Statutes, limits the types of investments that the City can invest in unless specially authorized in the City's
investment policy. The City's formal investment policy, for all investments except the Pension Trust Fund, allows for the following
investments: Florida Local Government Surplus Funds Trust Fund, United States Government Securities, United States Government
Agencies, Federal Instrumentalities, Interest Bearing Time Deposit or Saving Accounts, Repurchase Agreements, Commercial Paper,
High Grade Corporate Notes, Bankers' Acceptances, State and/or Local Government Taxable and/or Tax -Exempt Debt, Registered
Investment Companies (Money Market Mutual Funds), and Intergovernmental Investment Pool.
Florida Statutes Chapter 185 regulates the types of investment that may be held by the Police Pension Trust Fund. The investment
guidelines have been augmented by City ordinance that have adopted specific investment policies. Compliance with the policies
and guidelines has been evaluated by the pension board.
As of September 30, 2018, the City had the following investments and effective duration presented in terms of years:
Investment Type
General investments
Local government surplus
funds trust fund ("SBA")
Florida Local Government
Investment Trust
Fair Value No Maturities Less than 1
$ 3,744,684 $
506,517
$ 4,251,201 $
Police officers' pension fund investments
- $ 3,744,684 $
506,517
$ 4,251,201 $
Money market $
561,632
$ $
United States treasuries
106,381
United States agencies
442,181
Collateralized mortgage
obligations
1,082,401
Unit Investment trusts
111,257
Municipal obligations
162,443
Domestic corporate bonds
1,256,896
Foreign corporate bonds
372,130
Domestic corporate equities
9,714,680
9,714,680
Foreign corporate equities
625,661
625,661
EFT equities
8,960
8,960
Real estate investment trust
691,372
691,372
$
15,135,994
$ 11,040,673 $
Investment Maturity (Years)
From 1-3 From 4-6 Over 7
561,632 $ - $
- $
-
- 34,402
38,207
33,772
- 203,456
133,625
105,100
747 3,724
68,450
1,009,480
111,257 -
-
-
- 36,958
60,562
64,923
490,811
328,133
437,952
155,156
-
216,974
673,636 $ 924,507 $ 628,977 $ 1,868,201
Ma
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Interest Rate Risk. The City's investment policy limits interest rate risk by attempting to match
investment maturities with known cash needs and anticipated cash flow requirements. Investment
maturities shall not exceed thirty-six (36) months. Investments of construction funds shall have a term
appropriate to the need for funds and in accordance with debt covenants.
Credit Risk. The City investment policy that covers all investments, except the Pension Trust Fund,
permits investments in the following securities, which are limited to credit quality ratings from nationally
recognized agencies as follows:
Mutual funds shall be rated "m" or "AAm-G" or better by Standard Et Poor's, or the equivalent by another
rating agency. State and/or local government taxable and/or tax-exempt debt, general obligation and/or
revenue bonds, rated at least "Aa" by Moody's and "AA" by Standard Et Poor's for long-term debt, or rated
at least "MIG-2" by Moody's and 'SP-2" by Standard Et Poor's for short-term debt. Bankers' acceptances
issued by a domestic bank or a federally chartered domestic office of a foreign bank, which are eligible
for purchase by the Federal Reserve System, at the time of purchase, the short-term paper is rated, at a
minimum, "P-I" by Moody's Investors Services and "A -I" Standard Et Poor's. Commercial paper of any United
States company that is rated, at the time of purchase, "Prime-V by Moody's and "Ad" by Standard Et Poor's
(prime commercial paper). Corporate notes issued by corporations organized and operating within the
United States or by depository institutions licensed by the United States that have a long-term debt
rating, at the time of purchase, at a minimum "Aa" by Moody's and a minimum long-term debt rating of
"AA" by Standard Et Poor's.
As of September 30, 2018, the City's investment securities, for all investments except the Pension Trust
Fund, were all individually rated AAA by Standard Et Poor's. The investment ratings for the Pension Trust
Fund ranged between AAA through BBB.
As of September 30, 2018, the City had $3,744,684 invested in the State Board of Administration's Local
Government Surplus Trust Funds Investment Pool, which consist of accounts in Pool A. Pool A had a rating
by Standard and Poor's Rating Services as "AAA" on September 30, 2018 and amounts may be withdrawn
without penalty. Additionally, the City had $506,517 invested in the Florida Local Government
Investment Trust which had a rating by Standard and Poor's Rating Services as "AAA" on September 30,
2018.
Investment in the City's pension trust funds are limited by State Statutes Chapter 185 and by an
investment policy adopted by the fund's Board of Trustees on December 31, 2016. The allowable
investment instruments include: United States government and agency issues, bankers acceptances and
certificates of deposit by United States banks, savings accounts with banks or other financial institutions
incorporated in the United States and commercial paper rated A-2 or P-2 or higher by Moody's or Standard
and Poors. See table below for credit ratings by investment type. In addition, common stocks of
corporations listed on a recognized national stock exchange, plus issues convertible into common stock
are also allowed. No more than ten percent (10%) of the cost value of total assets may be invested in
foreign securities.
61
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Custodial Credit Risk. The City's investment policy pursuant to Section 218.415(18), Florida Statutes
requires securities, with the exception of certificates of deposits, shall be held with a third party
custodian; and all securities purchased by, and all collateral obtained by the City should be properly
designated as an asset of the City. The securities must be held in an account separate and apart from the
assets of the financial institution. A third party custodian is defined as any bank depository chartered by
the Federal Government, the State of Florida, or any other state or territory of the United States which
has a branch or principal place of business in the State of Florida as defined in Section 658.12, Florida
Statutes, or by a national association organized and existing under the laws of the United States, which is
authorized to accept and execute trusts and which is doing business in the State of Florida. Certificates of
deposits maintained by book -entry at the issuing bank shall clearly identify the City as the owner.
Concentration of Credit Risk. The City's investment policy has established asset allocation and issuer
limits on the following investments, which are designed to reduce concentration of credit risk of the City's
investment portfolio.
A maximum of 100% of available funds may be invested in the SBA and in the United States Government
Securities, 50% of available funds may be invested in United States Government agencies with a 25% limit
on individual issuers, 80% of available funds may be invested in Federal Instrumentalities with a 40% limit
on individual issuers, 25% of available funds may be invested in non-negotiable interest bearing time
certificates of deposits with a 15% limit on individual issuers, 50% of available funds may be invested in
repurchase agreements excluding one (1) business day agreements and overnight sweep agreements with
a 25% limit on any one institution, 25% of available funds may be directly invested in prime commercial
paper with a 10% limit on individual issuers, 15% of available funds may be directly invested in corporate
notes with a 5% limit on individual issuers, 25% of available funds may be directly invested in Bankers'
Acceptances with a 10% limit on individual issuers, 20% of available funds may be invested in taxable and
tax-exempt debts, 50% of available funds may be invested in money market mutual fund with a 25% limit
on individual issuers, 10% of available funds may be invested in intergovernmental investment pools.
The City's pension trust fund's investment policy adopted by the fund's Board of Trustees has established
asset allocation and issuer limits on the following investments, which are designed to focus on
performance. A maximum of 100% of available funds may be invested in fixed income securities and a
maximum of 60% of available funds may be invested in equity securities.
62
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
As of September 30, 2018, the City had the following issuer concentration based on fair value and
investment ratings:
General Investments Pension Investments
Percentage of Percentage of SEEP/Moody
Issuer Amount Portfolio Amount Portfolio Ratings
Local government surplus
funds trust fund ("SBA") $ 3,744,684
88.09%
$
0.00%
AAAm
Florida Local Government
Investment Trust 506,517
11.91%
-
0.00%
AAAm
Money market -
0.00%
561,632
3.71%
Not Rated
United States treasuries
0.00%
106,381
0.70%
AA+
United States agencies
0.00%
442,181
2.92%
AA+
Collateralized mortgage
obligations
0.00%
1,082,401
7.15%
AAA through A
Unit Investment trusts
0.00%
111,257
0.74%
Not Rated
Municipal obligations
0.00%
162,443
1.07%
AAA/AA/A/A-
Domestic corporate bonds
0.00%
1,256,896
8.30%
BBB thru AAA
Foreign corporate bonds
0.00%
372,130
2.46%
A- thru AAA
Domestic corporate equities
0.00%
9,714,680
64.18%
Not Rated
Foreign corporate equities
0.00%
625,661
4.13%
Not Rated
EFT equities
0.00%
8,960
0.06%
Not Rated
Real estate investment trust
0.00%
691,372
4.57%
Not Rated
Total $ 4,251,201
100.00%
$ 15,135,994
100.00%
Fair Value Measurement
The City categorizes the fair value measurements of its investments within the fair value hierarchy
established by generally accepted accounting principles. Level 1 inputs are quoted prices (unadjusted) in
active markets for identical assets or liabilities. Level 2 inputs are inputs - other than quoted prices
included within Level 1- that are observable for the asset or liability, either directly or indirectly. Finally,
Level 3 inputs are unobservable and are based on estimates and assumptions. These levels are
determined by the management's review of the type and substance of investments held by the City.
Level 2 inputs use one of the following valuation techniques depending on the investment: a) traditional
net asset valuation (dividing the asset value by the number of units owned), b) matrix pricing technique
(relying on the securities' relationship to other benchmark quoted securities instead of exclusively on
quoted prices for specific securities), or c) quoted market prices for similar assets in active markets or
quoted prices for identical or similar assets in markets that are not active.
63
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
The City has the following recurring fair value measurements as of September 30, 2018:
Level Level Level Total
Local government surplus funds
trust fund ("SBA")
$ 3,744,684 $
$
$ 3,744,684
Florida Local Government
Investment Trust
506,517
506,517
Money market
561,632
561,632
United States treasuries
106,381
106,381
United States agencies
-
442,181
442,181
Collateralized mortgage
obligations
-
1,082,401
1,082,401
Unit Investment trusts
111,257
-
111,257
Municipal obligations
-
162,443
162,443
Domestic corporate bonds
1,256,896
1,256,896
Foreign corporate bonds
-
372,130
372,130
Domestic corporate equities
8,464,033
1,250,647
9,714,680
Foreign corporate equities
625,661
-
625,661
EFT equities
8,960
- 8,960
Real estate investment trust
-
691,372 691,372
$ 14,129,125 $ 4,566,698 $ 691,372 $ 19,387,195
4. RECEIVABLES
Receivables are comprised of the following at year-end:
Governmental Business -type
Activities Activities Total
Accounts receivable $ 312,724 $ 385 $ 313,109
Due from other governments 753,873 295,633 1,049,506
$ 1,066,597 $ 296,018 $ 1,362,615
5. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable and accrued liabilities are comprised of the following at year-end:
Governmental Business -type
Activities Activities Total
Accounts payable and accrued liabilities $ 516,933 $ 65,518 $ 582,451
Due to other governments 135,437 13,717 149,154
$ 652,370 $ 79,235 $ 731,605
64
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
6. INTERFUND RECEIVABLES AND PAYABLES AND TRANSFERS
The composition of interfund balances as of September 30, 2018, was as follows:
Due to and from primary government funds
Due from Due to Other
Other Funds Funds
General Fund $ 745,800 $ -
Golf Course - 535,800
Airport 210,000
$ 745,800 $ 745,800
These balances resulted from the time lag between the dates that (1) interfund goods and services are
provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and
(3) payments between funds are made.
Advances to and from primary government funds
Advance from Advance to
Other Funds Other Funds
General Fund $ $ 65,000
Discretionary Sales Tax 545,591
Golf Course 1,235,058 -
Airport 610,591 -
Building - 1,235,058
$ 1,845,649 $ 1,845,649
The balance of $545,591 advanced to the airport fund from the discretionary sales tax fund is being
repaid in accordance with Resolution No. R-08-20 for the initial $285,000 advance and with Resolution No.
R-10-22 authorizing an additional $290,000 advance. Both of these advances provided for repayment over
a thirty year period. The $65,000 advanced to the airport from general fund represents the balance of a
$200,000 cash loan made in 2007 without any specified terms for repayment. The $1,235,058 was
advanced from the Building Fund to replace the irrigation system and make other improvements at the
Golf Course.
65
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
For the year ended September 30, 2018, interfund transfers consisted of the following:
General Fund
Discretionary Sales Tax Fund
Riverfront Redevelopment Fund
Capital Projects Fund
Nonmajor Governmental Funds
Golf Course
Airport Fund
Building Fund
Transfers in Transfers out
$ 704,641 $
636,029
-
2,563,712
-
289,495
1,988,267
-
1,734,129
1,308,258
149,695
7,118
220,762
-
7,118
$ 4,804,612 $ 4,804,612
7. CAPITAL ASSETS
Capital asset activity for the primary government for the year ended September 30, 2018, was as follows:
Beginning Ending
Balance Additions Disposals Transfers Balance
Governmental activities
Capital assets, not being depreciated:
Land $ 8,391,050 $ 756,069 $ (24,078) $ - $ 9,123,041
Construction in progress 381,889 843,315 (19,346) (1,017,099) 188,759
8,772,939 1,599,384 (43,424) (1,017,099) 9,311,800
Capital assets, being depreciated:
Buildings
13,342,052
3,200
(2,931)
761,468
14,103,789
Non -building improvements
6,871,238
424,006
(78,179)
10,899
7,227,964
Machinery and equipment
9,644,089
468,936
(429,835)
122,109
9,805,299
Infrastructure
42,100,211
360,696
122,623
42,583,530
71,957,590
1,256,838
(510,945)
1,017,099
73,720,582
Less accumulated depreciation for:
Buildings
(5,727,994)
(385,420)
2,215
(6,111,199)
Non -building improvements
(4,229,785)
(313,707)
55,004
(4,488,488)
Machinery and equipment
(7,104,623)
(899,857)
422,660
(7,581,820)
Infrastructure
(23,032,101)
(1,664,794)
-
(24,696,895)
(40,094,503)
(3,263,778)
479,879
- (42,878,402)
Total capital assets
being depreciated, net
31,863,087
(2,006,940)
(31,066)
1,017,099 30,842,180
Governmental activities
capital assets, net
$ 40,636,026 $
(407,556) $
(74,490) $
- $ 40,153,980
66
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Beginning
Ending
Balance
Additions
Disposals
Transfers
Balance
Business -type activities
Capital assets, not being depreciated:
Land $ 19,436
$ - $
(10,376)
$
-
$ 9,060
Construction in progress 320,045
2,639,470
(107,788)
(2,795,499)
56,228
339,481
2,639,470
(118,164)
(2,795,499)
65,288
Capital assets, being depreciated:
Buildings 9,166,126
-
281,829
9,447,955
Non -building improvements 2,850,542
-
14,286
2,864,828
Machinery and equipment 1,511,226
31,119
(118,962)
202,136
1,625,519
Infrastructure 8,732,662
13,017
(8,361)
2,297,248
11,034,566
22,260,556
44,136
(127,323)
2,795,499
24,972,868
Less accumulated depreciation for:
Buildings (1,911,912)
(263,629)
-
(2,175,541)
Non -building improvements (1,339,322)
(115,483)
-
(1,454,805)
Machinery and equipment (890,917)
(174,760)
97,192
(968,485)
Infrastructure (4,818,464)
(450,266)
8,361
(5,260,369)
(8,960,615)
(1,004,138)
105,553
-
(9,859,200)
Total capital assets
being depreciated, net 13,299,941
(960,002)
(21,770)
2,795,499
15,113,668
Business -type activities
capital assets, net $ 13,639,422
$ 1,679,468 $
(139,934)
$
-
$ 15,178,956
Depreciation expense was charged to
functions/programs
of the primary
government as follows:
Depreciation of governmental activities by function
General government
$
432,559
Public safety
378,699
Physical environment
1,163,661
Transportation
882,007
Cultural and recreation
406,852
Total governmental activities
$
3,263,778
Depreciation of business -type activities by function
Golf course
$
214,170
Airport
771,240
Building
18,728
Total business -type activities
$
1,004,138
67
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
8. LONG-TERM DEBT
Revenue notes are secured by and payable from the revenues of the respective funds that issued them.
The City entered into a nine (9) year loan agreement in 2012 with a local bank for $2,296,000 to
provide financing to repave certain roads in the City and payoff an outstanding loan. The City pledged
Local Option Gas Tax revenues to repay the note payable. The funds are accumulated in the Local
Option Gas Tax Special Revenue fund for repayment of principal and interest.
The City issued a nine (9) year, $3,096,000 Stormwater Utility Refunding Revenue Note, Series 2013 in
December 2013. The City has pledged stormwater fee revenues for repayment of principal and
interest. These proceeds and other stormwater fee revenues were used to totally advance refund all
of the outstanding Stormwater Utility Revenue Bonds prior to September 30, 2014.
As of September 30, 2018, there was no outstanding in -substance defeased debt.
The following is a summary of governmental activities long-term debt transactions for the year ended
September 30, 2018:
Beginning Ending Due Within
Balance Additions Deductions Balance One Year
Governmental activities
Notes payable $ 3,175,000 $ - $ (590,000) $ 2,585,000 $ 601,000
Compensated absences 1,395,594 424,205 (415,247) 1,404,552 119,845
Pollution remediation 91,200 - 91,200 -
Totals governmental
activities $ 4,661,794 $ 424,205 $ (1,005,247) $ 4,080,752 $ 720,845
Notes Davable
Florida Gas Tax Revenue Note, due in annual installments of
$97,000 to $121,000 plus interest at 1.94%
through 2023.
2013 Stormwater Utility Refunding Revenue Note, Series 2013,
due in annual installments of $352,000 to $395,000 plus
interest at 1.73% through 2022.
$ 1,044,000
1,541,000
$ 2,585,000
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
The following is a summary of business -type activities long-term debt transactions for the year ended
September 30, 2018:
Beginning Ending Due Within
Balance Additions Deductions Balance One Year
Business -type activities
Compensated absences
$ 233,766 $
39,772 $ (44,860) $ 228,678
7,318
Capital lease
254,453
- (48,286) 206,167
49,996
Totals business -type
activities
$ 488,219 $
39,772 $ (93,146) $ 434,845 $
57,314
Annual debt service
requirements to maturity for long-term debt are as follows:
Governmental Activities
Year Ended
September 30,
Principal
Interest
2019
$ 601,000 $
45,836
2020
611,000
34,939
2021
620,000
23,868
2022
632,000
12,635
2023
121,000
1,174
$ 2,585,000 $
118,452
Business -type Activities
Year Ended
September 30,
Principal
Interest
2019
$ 49,996 $
6,394
2020
51,768
4,623
2021
53,602
2,789
2022
50,801
890
$ 206,167 $
14,696
For the governmental activities, compensated absences are generally liquidated by the General Fund. For
business -type activities,
compensated
absences are allocated to and liquidated by the
Golf Course,
Airport or Building funds.
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
A pollution remediation obligation was recorded for a Florida Department of Environmental (FDEP) Order
dated March 10, 1997. This was related to an incident of petroleum contamination at the Public Works
Department on April 22, 1991. The City was named as the party responsible for the cleanup but FDEP
determined the discharge is eligible under the Petroleum Cleanup Participation Program and will not
compel site rehabilitation prior to funding becoming available from that program. The program has a
funding cap of $400,000, with a 25% required cost share percentage. The City must also pay for a limited
contamination assessment report sufficient to determine the extent of the contamination and cleanup.
Based on the information available, the City estimated its expenditure to be $91,200 dependent on the
extent of work that is eventually required and recorded a long-term liability of $91,200. This liability
would generally be liquidated by the General Fund.
9. LEASES
Operating Leases - Lessee
The City is obligated under a lease for land accounted for as an operating lease. Operating leases do not
give rise to property rights or lease obligations. Total costs for the lease was $100,000 for the fiscal year
ended September 30, 2018. This represents the Golf Fund's lease obligation for the property used as the
City's golf course which resides partially on the Airport Fund's grounds. The following is a schedule by
years for future minimum rental payments required under the operating lease that has initial or
remaining noncancelable lease terms in excess of one year at September 30, 2018:
Year Ended Golf Course
September 30, Lessee
2019 $
100,000
2020
100,000
2021
100,000
2022
100,000
2023
100,000
2024-2028
500,000
2029-2033
500,000
2034-2038
500,000
2039-2043
500,000
2044-2045
200,000
Total $ 2,700,000
70
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Operating Leases - Lessor
The City is the lessor of numerous properties including two communication towers with terms of up to
fifty-five years. The towers have a cost of $39,285 and have been fully depreciated. Following is a
schedule by year of minimum future rental income on noncancelable operating leases:
Year Ended Governmental
September 30, Activities
2019
$ 232,944
2020
230,969
2021
233,106
2022
235,771
2023
217,833
2024-2028
970,228
2029-2033
1,045,957
2034-2038
1,166,155
2039-2043
1,319,562
2044-2048
1,197,352
2049-2053
1,235,235
2054-2055
578,936
Total $ 8,664,047
The Airport Fund is the lessor of various properties (land with a cost basis of $9,060) with lease terms
varying from twenty to thirty years. These include the lease to the Golf Course Fund requiring annual
payments of $100,000 through 2045. Following is a schedule by year of minimum future rental income on
noncancelable operating leases:
Future minimum rental commitments are as follows:
Year Ended
Business -type
September 30,
Activities
2019
$ 314,526
2020
314,322
2021
314,322
2022
314,322
2023
314,322
2024-2028
1,320,834
2029-2033
1,080,922
2034-2038
439,805
2039-2043
184,500
2044-2045
73,800
Total $ 4,671,675
71
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
10. PROPERTY TAXES
The City is permitted by State law to levy taxes up to 10 mills on assessed valuation. The millage rate
levied by the City for the fiscal year ended September 30, 2018, was 3.4000 mills. Total tax collections
were approximately 96.58% of the total tax levy.
The tax levy of the City is established by City Council. Under Florida law, the assessment of all properties
and the collection of municipal taxes are provided by offices of the County's Property Appraiser and Tax
Collector. Ad Valorem taxes are levied on property values as of January 1. The fiscal year for which taxes
are levied begins October 1. Taxes are due November I and become delinquent on April 1. All taxes
unpaid as of May 30 are subject to a tax certificate sale. Property tax revenues are recognized in the
fiscal year for which they are levied and also become due and payable.
11. CONTINGENT LIABILITIES
Various suits and claims are currently pending against the City. It is impossible for the City to accurately
quantify the exposure involved given the jury's latitude in assessing compensatory and punitive damages,
and the court's latitude in awarding attorney's fees. The City intends to vigorously defend against these
lawsuits and believes it has a good chance of prevailing on their merits. The City is contingently liable
with respect to lawsuits and other claims incidental to the ordinary course of its operations. In the
opinion of management and based on the advice of legal counsel, the ultimate disposition of lawsuits will
not have a material adverse effect on the financial position of the City.
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor
agencies, principally the federal and state governments. Any disallowed claims, including amounts
already collected, may constitute a liability to the applicable funds. The amount, if any, of expenditures
that may be disallowed by the grantor cannot be determined at this time, although the City expects such
amounts, if any, to be immaterial.
12. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of or damage to and destruction of
assets; errors and omissions; and natural disasters. The City purchases commercial insurance with various
deductibles for different types of losses. The cost of this insurance is accounted for in the General Fund,
Golf Course Fund, Airport Fund, and Building Fund. Settled claims have not exceeded this commercial
coverage in the past three fiscal years.
72
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
13. BENEFIT PLANS
Police Officer's Pension Plan
Defined Benefit Pension Plan
Plan Description. The Police Officers' Pension Plan is a Florida Statute Chapter 185 single -employer
defined benefit plan. Only City police officers participate in the Police Pension Plan. The state provides a
contribution to the Police Pension Plan through a distribution of funds collected from insurance premium
taxes. The pension plan data provided in these financial statements are from the actuarial valuation as of
October 1, 2017 to determine the required contribution for the fiscal year ending September 30, 2018.
Although the Police Officers' Pension Plan provides separate reporting, which may be obtained in the
Finance department, it is also a component unit (reporting as a Pension Trust Fund) of the City's financial
reporting entity.
Basis of Accounting. Financial statements are prepared using the accrual basis of accounting. Plan
member contributions are recognized in the period in which the contributions are due. Employer
contributions are recognized when due, and the employer has made formal commitment to provide the
contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of
the Plan.
Method Used to Value Investments. Investments are reported at fair value. Short-term investments are
reported at cost, which approximates fair value. Securities traded on a national or international exchange
are valued at the last reported sales price at current exchange rates. Mortgages are valued on the basis of
future principal and interest payments, and are discounted at prevailing interest rates for similar
instruments. Investments that do not have an established market are reported at estimated fair value.
Investments in securities of a single organization (excluding mutual funds and those issued or guaranteed
by the U.S. government) held by the pension plan did not exceed five percent of the total plan assets.
Investment Policy. The plan's policy in regard to the allocation of invested assets is established and may
be amended by the Board of Trustees. The investment policy has been formulated based on consideration
of a wide range of policies and describes the prudent investment process that the Board deems
appropriate. The plan's asset allocation policy is shown on the following pages.
Concentrations. At September 30, 2018, the plan held certain investments (other than those issued or
explicitly guaranteed by the U.S. government, mutual funds, external investment pools, or other pooled
investments) in certain organizations that represent 5 percent or more of the plan's fiduciary net position.
Please see Note 3 for details of these concentrations.
Plan Membership. As of September 30, 2018, employee membership data was as follows:
Inactive plan members or beneficiaries currently receiving benefits 16
Inactive plan members entitled to but not yet receiving benefits 10
Active plan members 39
Total membership 65
73
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Benefit Provisions and Contribution Requirements. The Police Officers' Pension Plan provides retirement
and disability benefits to plan members and beneficiaries. This plan is administered by a separate local
Board of Trustees. Chapter 185, Florida Statutes, as amended governs all benefit provisions of the plan.
Contribution requirements, in accordance with Chapter 185, Florida Statutes, are established by City
ordinance, as provided in Chapter 58, Article III of the Sebastian City Code. The City Council has the
authority to amend funding requirements.
Contributions. Members contribute 8% of their salary. City and state contributions consist of the
remaining amount required in order to pay current costs and amortize unfunded past service cost, if any,
over a period not exceeding 30 years. State contributions are reported as revenues and expenditures in
the General Fund before being reported in the Pension Trust Fund.
Rate of Return. For the year ended September 30, 2018, the annual money -weighted rate of return on
pension plan investments, net of pension plan investment expense, was 7.35 percent. The money -
weighted rate of return expresses investment performance, net of investment expense, adjusted for the
changing amounts actually invested.
Net Pension Liability of the City. The components of the net pension liability of the City at
September 30, 2018, were as follows:
Total pension liability $ 18,491,325
Less: Plan fiduciary net position 15,167,320
City's net pension liability $ 3,324,005
Plan fiduciary net position as
percentage of total pension
liability 82.02%
Actuarial Assumptions. The total pension liability was determined by an actuarial valuation as of
October 1, 2017 updated to September 30, 2018 (the measurement date) using the following actuarial
assumptions applied to all measurement periods.
Inflation
Salary increases
Discount rate
Investment rate of return
2.30%
3.80% - 16.00%
7.30%
7.30%
Mortality is based on the RP-2000 Table with no projection. Disabled lives are set forward 5 years. The
City feels this assumption sufficiently accommodates future mortality improvements.
The other significant assumptions are based upon the most recent actuarial experience study performed
on September 16, 2013, for the period 1999-2012.
74
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which best -estimate ranges of expected future real rates of return (expected returns, net of
pension plan investment expenses and inflation) are developed for each major asset class. These ranges
are combined to produce a long-term expected rate of return by weighing the expected future real rates
of return by the target asset allocation percentage and by adding expected inflation. Best estimates of
arithmetic real rates of return for each major asset class included in the pension plan's target asset
allocation as of September 30, 2018 are summarized in the following table:
Expected
Long-term Money -
Target Expected Real Weighted Rate
Asset Class Allocation Rate of Return of Return
Domestic equity
52.50%
6.65%
3.49%
International equity
12.50%
6.09%
0.76%
Fixed income
25.00%
2.20%
0.55%
Real Estate
5.00%
3.30%
0.17%
Master Limited Partnerships
5.00%
5.50%
0.28%
Total
100.00%
5.25%
Inflation
Risk adjustments
Investment rate of return
2.30%
0.25%
7.30%
Discount Rate. The discount rate used to measure the total pension liability was 7.30 percent. The
projection of cash flows used to determine the discount rate assumed that plan member contributions will
be made at the current contribution rate and that sponsor contributions will be made at rates equal to
the difference between actuarially determined contribution rates and the member rate. Based on those
assumptions, the pension plan's fiduciary net position was projected to be available to make all projected
future benefit payments of current plan members. Therefore, the long-term expected rate of return on
pension plan investments was applied to all periods of projected benefit payments to determine the total
pension liability.
75
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following presents the net
pension liability of the City, calculated using the discount rate of 7.30 percent, as well as what the City's
net pension liability would be if it were calculated using a discount rate that is one percentage point
lower (6.30 percent) or one percentage point higher (8.30 percent) than the current rate.
One Percent Current One Percent
Decrease Discount Rate Increase
6.30% 7.30% 8.30%
Net Pension Liability $ 5,827,857 $ 3,324,005 $ 1,254,101
Changes in the Net Pension Liability. The components of the change in the net pension liability are
summarized as follows:
Balances at September 30, 2017
Changes for the year:
Service cost
Interest on total pension liability
Change in excess state money
Differences between expected and
actual experience
Benefit payments, including refunds
of employee contributions
Employer contributions
State contributions
Employee contributions
Pension plan net investment
income
Administrative expense
Net changes
Balances at September 30, 2018
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
$ 17,252,501 $ 14,002,519 $ 3,249,982
589,149
589,149
1,270,670
1,270,670
(84,863)
(84,863)
164,601
164,601
(700,733) (700,733)
525,296 (525,296)
188,923 (188,923)
204,854 (204,854)
1,028,549 (1,028,549)
- (82,088) 82,088
1,238,824 1,164,801 74,023
$ 18,491,325 $ 15,167,320 $ 3,324,005
State statutes mandate that the State contribution be recorded as revenue to the General Fund and then
paid to the Pension Trust Fund.
76
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions. For the year ended September 30, 2018, the City recognized pension expense of $913,221. At
September 30, 2018, the City reported pension -related deferred outflows of resources and deferred
inflows of resources from the following sources:
Net Deferred
Deferred
Deferred
Outflows
Outflows of
Inflows of
(Inflows) of
Resources
Resources
Resources
Difference between expected and
actual experience
$ 173,291
$ 48,125
$ 125,166
Changes in assumptions
524,762
-
524,762
Net difference between projected and actual
earnings on pension plan investments
-
181,190
(181,190)
$ 698,053
$ 229,315
$ 468,738
Amounts reported as pension -related deferred outflows of resources and deferred inflows of resources
will be recognized in pension expense as follows:
Year Ended
September 30,
Amount
2019
$ 287,913
2020
109,610
2021
16,909
2022
27,154
2023
27,152
Total
$ 468,738
Payable to the Pension Plan. At September 30, 2018, the City reported
$0 payable to the police officer's
pension plan.
77
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Coastal Florida Public Employees Association
Negotiated Defined Benefit Pension Plan
Plan Description. The Communication Workers of America / International Typographical Union
Negotiated Pension Plan (NPP), which began in 1967, is a multi -employer cost -sharing, defined benefit
plan. The plan is available to any Coastal Florida Public Employees Association bargaining unit member
and benefits are portable from one contributing employer to another. The plan is not a state or local
governmental plan, is used to provide defined benefit pensions both to employees of state or local
governmental employers and to employees of employers that are not state or local governmental
employers, has no predominant state or local governmental employer and issues audited financials
following FASB guidelines, which can be obtained at http://www.cwaitu.com. The City of Sebastian
approved the plan by Resolution No. R-01-36, effective April 29, 2001. There is currently no expiration
date of the collective -bargaining agreement requiring contributions to the pension plan. The total number
of governmental employees covered as of September 30, 2018, was 65. The City chose to early implement
the GASB 78 disclosure requirements in FY15.
Normal Pension. Minimum age 65: 5 years of service credit required if any portion of service credit was
earned after January 1, 1989. 10 years of service credit required if employees' coverage ended before
January 1, 1989. Once the service credit amount is accrued, the employee is vested and cannot lose the
right to a pension.
Early Pension. Minimum age 62: 20 years of service credit required if employed after January 1, 1989,
and 25 years of service credit required if employment ended before January I, 1993. Pension amounts are
permanently reduced based on age on the effective date, because the payments are expected to be made
for a longer period of time.
Disability Pension. No minimum age and the pension amount is not reduced for age; there must be a
Social Security Disability Award, 10 years of actual service credit and a contribution for covered
employment must have been made within three calendar years preceding the entitlement date to Social
Security Disability Pension. An application must be filed with the plan within 6 months of the Social
Security Notice of Award date to receive pension retroactive to the Social Security entitlement date.
Lump Sum Disability Benefit. If the employee has been awarded a Social Security Disability Award with
the date of entitlement before May 1, 2009 and is vested, but not immediately eligible to receive any
pension described above, the employee may be eligible for a lump sum disability benefit.
Death Benefit. If the employee dies before becoming a pensioner and has at least $250 contributed on
the employees' behalf, a lump sum death benefit equal to total contributions credited on the employees'
behalf or 36 times the Normal Pension amount, if greater, will be paid to employees' beneficiary. If the
employee is married at the time of death, the spouse will have the choice of a lump sum or a monthly
survivor benefit.
78
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Withdrawal Benefit. If the employee did not earn enough service credit to qualify for a normal pension,
the employee may be eligible for a lump sum withdrawal benefit, based on total contributions, after the
employee has incurred a break in service. Benefit Provisions and Contribution Requirements: The NPP
provides retirement and disability benefits to plan members and beneficiaries. The plan is administered
at the plan office in Colorado Springs, Colorado. Contribution requirements are established by the CWA
contract, effective date October 1, 2011, which is negotiated every 3 years, and approved by City
Council.
Benefit Provisions and Contribution Requirements. The NPP provides retirement and disability benefits to
plan members and beneficiaries. The plan is administered at the plan office in Colorado Springs,
Colorado. Contribution requirements are established by the CWA contract, effective date October 1,
2013, which is negotiated every 3 years, and approved by City Council.
Employer Withdrawal Liability. Under federal law, employers who partially or completely withdraw from
a multiemployer plan are assessed withdrawal liability for their proportionate share of the plan's
unfunded vested liabilities as of the beginning of the year in which they withdraw. Withdrawal liability is
usually paid in quarterly installments as determined by a statutory formula over a maximum of 20 years.
Funding Policy. Administration costs of the pension plan are financed by the plan. The employer
contribution rate, expressed as a percentage of compensation, was 9.0% for the 2017-2018 fiscal year.
Employees do not contribute to this plan. Contributions to the CWA Pension Plan for the fiscal years
ended September 30, 2016, 2017 and 2018 were $200,889, $204,035 and $217,695 respectively, which are
equal to 100% of the required contribution for each year.
Defined Contribution 401(a) Plan
Plan Description. The ICMA Retirement Corporation's 401 Retirement Plan is a Defined Contribution Plan
"qualified" under Section 401(a) of the Internal Revenue Code. Each participant has a plan account to
which contributions are made. Plan benefits are based on the total amount of money in the employees'
account at retirement or other eligible event. The plan is available to all management staff and may be
rolled over to another "qualified" employer plan that accepts rollovers, or Traditional IRA's.
Plan Participation. As of September 30, 2018, there were a total of 18 employees participating in the
plan.
Periodic Payments. Retirement benefits can be paid monthly, quarterly, semi-annual (at six-month
intervals only) or annual payments until assets are fully paid out.
Rollover. Retirement benefits can be rolled over to another employer plan (including a 457 deferred
compensation plan) that accepts rollovers, or to a Traditional IRA.
Lump Sum. Retirement benefits can be paid either partially or by total distribution of the employees'
account balance.
Annuities. Retirement benefits can be utilized to purchase an annuity.
`A
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Benefit Provisions and Contribution Requirements. The 401 provides retirement benefits to plan members and beneficiaries. The
plan is administered by the ICMA Retirement Corporation. Contribution requirements are established by the City of Sebastian,
Management Benefit Package, revised October 1, 2006, and approved by the City Manager.
Funding Policy. The administration costs of the pension plan are financed by the Plan. The employer contribution rate, expressed as
a percentage of compensation, was 9% for the 2017-2018 fiscal year. Employees do not contribute to this Plan. Contributions to the
401 Defined Contribution Plan for the fiscal years ended September 30, 2016, 2017 and 2018 were $151,891, $120,879 and $142,347
respectively, which are equal to 100% of the required contribution for each year.
1 14. OTHER POSTEMPLOYMENT BENEFITS
In addition to the pension benefits described in Note 13, the City provides postemployment benefits pursuant to Section 112.0801,
Florida Statutes. This permits participation in the health insurance program by retirees and their eligible dependents at a cost to the
retiree that is no greater than the cost at which coverage is available for active employees. The City, by policy, has elected to
provide qualified retirees with partial subsidy. In this respect, the City operates a single -employer plan. Employees are eligible to
receive a partial subsidy from the Retiree Medical Plan upon retirement, if they are enrolled in the active medical plan immediately
prior to retiring and achieved at least 20 years of service in a full time capacity. If eligible, the City pays 50% of the costs of single
coverage group health insurance for up to 2 years after retirement. Such premiums are expected to be funded on a pay-as-you-go
basis. An actuarial valuation of the City's liability for these benefits in accordance with GASB Statement No. 75 has not been
performed. Inasmuch as the plan is only open to a small number of City employees, management has determined that the net other
postemployment benefit liability would be immaterial to the financial statements taken as a whole.
In accordance with GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, the City classifies
fund balances based primarily on the extent to which it is bound to observe constraints imposed upon the use of the resources
reported in governmental funds. Detailed information on fund balances of governmental funds is as follows:
Discretionary
RiveGeneral Capital
Non s
General Fund
Sales Tax
Redevelopment Projects
Funds
Nonspendable:
Inventory
$ 41,016
$
$ $
$
$ 41,016
Prepaids
128,836
128,836
Long-term advances
65,000
545,591
610,591
Permanent fund corpus
-
-
996,875
996,875
Totalnonspendable
234,852
545,591
996,875
1,777,318
Restricted for:
Debt service
-
-
173,843
173,843
Infrastructure
3,009,007
553,344
3,562,351
Redevelopment
-
423,814
-
423,814
Stormwater
-
618,069
618,069
Law enforcement
77,185
-
-
44,122
121,307
Total restricted
77,185
3,009,007
423,814
1,389,378
4,899,384
Committed for:
Recreational system
development
-
-
-
653,069
653,069
Development of
public parking
54,598
54,598
Total committed
-
707,667
707,667
Assigned for:
Law enforcement events
13,871
-
13,871
Unassigned (deficit)
5,047,473
-
-
(3,048)
5,044,425
Total fund balances,
governmental funds
$ 5,373,381
$ 3,554,598
$ 423,814 $
$ 3,090,872
$ 12,442,665
:1,
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
16. NET INVESTMENT IN CAPITAL ASSETS
The composition of net investment in capital assets as of September 30, 2018, was as follows:
Governmental Business -type
Activities Activities Total
Capital assets:
Capital assets not being depreciated $ 9,311,800 $ 65,288 $ 9,377,088
Capital assets being depreciated, net 30,842,180 15,113,668 45,955,848
40,153,980 15,178,956 55,332,936
Related debt:
Notes payable 2,585,000 - 2,585,000
Capital lease - 206,167 206,167
2,585,000 206,167 2,791,167
Net investment in capital assets $ 37,568,980 $ 14,972,789 $ 52,541,769
17. COMMITMENTS AND CONTINGENCIES
Contracts and Other Commitments
The City has various contracts and commitments outstanding as of September 30, 2018. In the Capital Projects
Fund, there are contracts for constructing restrooms at the Barber Street Sports Complex, shade hangars at
the Airport, drainage improvements in the Stonecrop area and replacing Police Department vehicles.
A summary of these projects at September 30, 2018 is as follows:
Total Paid as of Encumbered at
Total Contract September 30, September 30,
Price 2018 2018
General Capital Projects - Major Fund
Sports Complex Restrooms $ 135,910 $ - $ 135,910
Shade Hangars 569,928 (29,960) 539,968
Stonecrop Drainage 19,145 (10,804) 8,341
Police Vehicles 270,822 (81,008) 189,814
Total $ 995,805 $ (121,772) $ 874,033
81
REQUIRED SUPPLEMENTARY INFORMATION
82
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Single -employer Pension Trust Fund
Schedule of Changes in Net Pension Liability
and Related Ratios
Fiscal Year
Fiscal Year
Fiscal Year
Ending
Ending
Ending
September 30,
September 30,
September 30,
2018
2017
2016
Total pension liability
Service cost
$ 589,149
$ 479,778
$ 418,143
Interest on total pension liability
1,270,670
1,179,511
1,027,558
Change in excess state money
(84,863)
-
-
Changes of benefit terms
613,973
-
Differences between expected and actual experience
164,601
20,758
59,175
Changes of assumptions
382,825
626,069
Benefit payments, including refunds of employee contributions
(700,733)
(495,629)
(493,765)
Net change in total pension liability
1,238,824
2,181,216
1,637,180
Total pension liability, beginning of year
17,252,501
15,071,285
13,434,105
Total pension liability, end of year
18,491,325
17,252,501
15,071,285
Plan fiduciary net position
Employer contributions
525,296
337,201
322,998
State contributions
188,923
168,628
169,027
Employee contributions
204,854
177,585
167,309
Pension plan net investment income (loss)
1,028,549
1,371,657
1,067,139
Benefit payments
(700,733)
(495,629)
(493,765)
Administrative expense
(82,088)
(45,633)
(28,025)
Net change in plan fiduciary net position
1,164,801
1,513,809
1,204,683
Plan fiduciary net position, beginning of year
14,002,519
12,488,710
11,284,027
Plan fiduciary net position, end of year
15,167,320
14,002,519
12,488,710
Net pension liability
$ 3,324,005
$ 3,249,982
$ 2,582,575
Plan fiduciary net position as a percentage of total pension liability
82.02%
81.16%
82.86%
Covered payroll
$ 2,560,670
$ 2,438,012
$ 2,263,866
Net pension liability as a percentage of covered payroll
129.81%
133.30%
114.08%
Note: GASB 67 was implemented in fiscal year 2014. This schedule is
being built prospectively.
Ultimately,
10 years of
data will be presented.
Changes in assumptions - The City revised certain actuarial assumptions in the October 1, 2017 valuation that had an
impact on the total pension liability from the prior measurement date.
The most significant change was a decrease in the
expected investment rate of return from 7.45% to 7.30%.
83
Fiscal Year
Fiscal Year
Fiscal Year
Ending
Ending
Ending
September 30,
September 30,
September 30,
2015
2014
2013
$ 403,611
$ 396,147
$ 367,653
979,259
914,243
853,018
22,218
24,386
-
(4, 316)
-
(240,633)
223,200
(496,363)
(452,892)
(465,435)
886,976
881,884
755,236
12,547,129
11,665,246
10,910,010
13,434,105
12,547,130
11,665,246
320,179
401,103
396,603
145,700
147,868
145,961
161,270
160,494
154,683
(60,326)
951,910
1,029,818
(496,363)
(452,892)
(465,435)
(39,673)
(27,815)
(32,153)
30,787
1,180,668
1,229,477
11,253,240 10,072,573 8,843,096
11,284,027 11,253,241 10,072,573
$ 2,150,078 $ 1,293,889 $ 1,592,673
84.00% 89.69% 86.35%
$ 2,154,612 $ 2,106,767 $ 2,131,399
99.79% 61.42% 74.72%
84
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Single -employer Pension Trust Fund
Schedule of Investment Returns
Fiscal Year
Ending Annual Return
September 30, (')
2013
11.51%
2014
9.42%
2015
-0.45%
2016
9.39%
2017
10.90%
2018
7.35%
(') Annual money -weighted rate of return, net of investment expenses
Note: GASB 67 was implemented in fiscal year 2014. This schedule is being built prospectively. Ultimately, 10 years of
data will be presented.
Schedule of Contributions
Actual
Contribution
Fiscal Year
Actuarially
Contribution
as Percentage
Ending
Determined
City
State
Deficiency
Covered
of Covered
September 30,
Contribution
Contribution
Contribution
(Excess)
Payroll
Payroll
2013
$ 506,560
$ 396,603
$ 145,961
$ (36,004)
$ 2,131,399
25.46%
2014
524,585
401,103
147,868
(24,386)
2,106,767
26.06%
2015
596,502
320,179
145,700
130,623
2,154,612
21.62%
2016
667,764
322,998
169,027
175,739
2,263,866
21.73%
2017
768,277
337,201
168,628
262,448
2,438,012
20.75%
2018
673,456
525,296
188,923
(40,763)
2,560,670
27.89%
85
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Single -employer Pension Trust Fund
Notes to Schedule of Contributions
Valuation date October 1, 2017
Notes Actuarially determined contribution amounts are calculated as of October 1, two years
prior to the end of the fiscal year in which contributions are reported.
Methods and assumptions used to determine contribution rates:
Funding method
Individual entry age normal actuarial cost
Amortization method
Level percentage of pay, closed
Remaining amortization period
26 Years (as of October 1, 2018)
Mortality
RP-2000 Table with no projection. Based on a study of over 650 public
safety funds, this table reflects a 10% margin for future mortality
improvements. (Disabled lives set forward 5 years).
Interest rate
7.30% per year compounded annually, net of investment related
expenses
Inflation
2.30% per year
Retirement age
Earlier of: 1) age 55 and 10 years of credited service, or 2) age 52 and
25 years of credited service, regardless of age. Also, any member who
has reached Normal Retirement is assumed to continue employment
for one additional year.
Early retirement
Commencing at the assumed Early Retirement Age (50), members are
assumed to retire with an immediate subsidized benefit at the rate of
5% per year.
Disability rates
Age based rates with increasing probability of disablement at higher
ages. A sample of rates are shown below:
Age
Assumption
30
0.12%
40
0.21
50
0.54%
60
2.70%
Additionally, it is assumed that 75% of disablements and active
Member deaths are service related.
Credited
Termination rates Service
Assumption
First two years
14.00%
Years 3-9
5.70%
Years 10-14
2.80%
15 years and
Greater
0.00%
Credited
Salary increases Service
Assumption
First year
16.00%
Years 2-14
7.40%
15 years and
Greater
3.80%
86
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Single -employer Pension Trust Fund
Final salary load
Payroll growth
Actuarial asset method
Service
Load
on 10/1/14
Assumption
5 or more years
20.00%
More than 2,
less then 5
years
10.00%
Less than 2 years
0.00%
2.36% for amortization of all UAAL bases
Market Value, net of investment -related expenses
87
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Coastal Florida Public Employees Association Pension Plan
Schedule of Employer Contributions
Fiscal
Annual
Year Ending
Required
September 30,
Contributions
2007
$ 254,909
2008
241,718
2009
254,997
2010
234,219
2011
223,113
2012
210,258
2013
202,612
2014
204,361
2015
217,916
2016
200,889
2017
204,035
2018
217,695
Notes to Schedule of Employer Contributions - Coastal Florida Public Employees Association Pension
Plan
Critical Status. Under federal pension law, a plan generally will be considered to be in "critical" status if
either the funded percentage of the plan is less than 65 percent or if certain other tests are met. If a
pension plan enters critical status, the trustees of the plan are required to adopt a rehabilitation plan.
Rehabilitation plans establish steps and benchmarks for pension plans to improve their funding status over
a specified period of time.
The Plan's actuary has certified that for the 2014 Plan year, the Plan was in critical status because the
Plan has a deficit in the minimum funding standard account. The Board of Trustees adopted a
rehabilitation plan on March 8, 2010, that for new pensions: eliminates the 60 month minimum guarantee
in the Life/5 pension option; increases the minimum age for Early Pension from age 60 to 62 (with 20
years of service credit); removes the Early Pension subsidy by increasing the reduction factors;
discontinues the offering of retroactive pension payments; and required 5 years of service credit to vest
for participants reaching normal retirement age before a break in service. A mandatory increase in
contributions is not required under the Rehabilitation Plan, but decreases in contribution rates or the
exclusion of covered employees are not permitted. A copy of the rehabilitation plan may be obtained be
contacting the Coastal Pension Plan office.
.,
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COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
to
CITY OF SEBASTIAN, FLORIDA
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2018
Assets
Cash and cash equivalents
Investments
Due from other governments
Total assets
Liabilities
Accounts payable and accrued liabilities
Fund balances
Nonspendable
Restricted
Committed
Unassigned (deficit)
Total fund balances
Total liabilities and
fund balances
Special Revenue Funds
Local Law
Option Parking Recreation Stormwater Enforcement
Gas Tax In -Lieu -of Impact Fee Utility Forfeiture
$ 338,377 $ - $ 471,907 $ 358,385 $ 8,804
151,453 54,598 181,162 - 35,318
63,514 - - 11,368 -
$ 553,344 $ 54,598 $ 653,069 $ 369,753 $ 44,122
$ - $ - $ - $ 19,289 $ -
553,344 - - 350,464 44,122
- 54,598 653,069 - -
553,344 54,598 653,069 350,464 44,122
$ 553,344 $ 54,598 $ 653,069 $ 369,753 $ 44,122
91
Debt Service
Capital Projects Funds
Permanent
Stormwater
Total
Utility
Stormwater
Nonmajor
Revenue
Capital
Transportation
Utility
Governmental
Bonds 2003
Improvements
Improvements
Improvements
Cemetery
Funds
$ 173,843
$ 1,725
$ 6,475
$ 250,939 $
108,473
$ 1,718,928
-
-
-
-
888,402
1,310,933
-
-
-
20,000
-
94,882
$ 173,843
$ 1,725
$ 6,475
$ 270,939 $
996,875
$ 3,124,743
$ -
$ 4,773
$ 6,475
$ 3,334 $
-
$ 33,871
- - 996,875 996,875
173,843 267,605 - 1,389,378
- - 707,667
(3,048) (3,048)
173,843
(3,048)
- 267,605
996,875
3,090,872
$ 173,843 $
1,725 $
6,475 $ 270,939 $
996,875 $
3,124,743
92
CITY OF SEBASTIAN, FLORIDA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2018
Special Revenue Funds
Local
Law
Option
Parking
Recreation
Stormwater
Enforcement
Gas Tax
In -Lieu -of
Impact Fee
Utility
Forfeiture
Revenues
Intergovernmental
$ 728,219 $
$ -
$
$
Impact fees
-
141,050
Charges for services
-
999,092
Fines
-
-
-
550
Investment earnings
6,685
929
12,552
15,888
853
Otherrevenues
-
13,776
-
-
-
Total revenues
734,904
14,705
153,602
1,014,980
1,403
Expenditures
Current:
Public safety
-
-
-
-
6,507
Physical environment
-
231,119
-
Transportation
25,756
-
Debt Service:
Principal
219,000
Interest and fiscal charges
23,445
Capital outlay
27,570
-
-
Total expenditures
295,771
-
-
231,119
6,507
Revenues over(under)expenditures
439,133
14,705
153,602
783,861
(5,104)
Other financing sources (uses)
Transfers in
-
-
-
-
Transfers out
(96,793)
(455,784)
(700,000)
Total other financing sources (uses)
(96,793)
-
(455,784)
(700,000)
Net change in fund balances
342,340
14,705
(302,182)
83,861
(5,104)
Fund balances, beginning of year
211,004
39,893
955,251
266,603
49,226
Fund balances, end of year
$ 553,344 $
54,598
$ 653,069
$ 350,464
$ 44,122
93
Debt Service
Capital Projects Funds
Permanent
Stormwater
Total
Utility
Stormwater
Nonmajor
Revenue
Capital
Transportation
Utility
Governmental
Bonds 2003
Improvements
Improvements
Improvements
Cemetery
Funds
$
$ 74,031
$
$ 40,000
$
$ 842,250
-
-
141,050
52,976
1,052,068
-
550
3,772
18,472
59,151
-
-
-
-
13,776
3,772
74,031
40,000
71,448
2,108,845
-
-
59,495
-
66,002
39,309
1,997
272,425
-
-
25,825
-
51,581
371,000
-
590,000
33,078
-
-
-
-
56,523
-
758,950
460,689
30,154
7,126
1,284,489
404,078
798,259
486,514
91,646
7,126
2,321,020
(400,306)
(724,228)
(486,514)
(51,646)
64,322
(212,175)
403,792
727,001
486,514
116,822
-
1,734,129
-
-
-
(47,173)
(8,508)
(1,308,258)
403,792
727,001
486,514
69,649
(8,508)
425,871
3,486
2,773
-
18,003
55,814
213,696
170,357
(5,821)
249,602
941,061
2,877,176
$ 173,843
$ (3,048)
$
$ 267,605
$ 996,875
$ 3,090,872
94
CITY OF SEBASTIAN, FLORIDA
Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Local Option Gas Tax Special Revenue Fund
For the Year Ended September 30, 2018
Revenues
Taxes:
Intergovernmental
Investment earnings
Total revenues
Expenditures
Current:
Transportation
Debt service:
Principal
Interest and fiscal charges
Capital outlay
Total expenditures
Revenues over expenditures
Other financing uses
Transfers out
Net changes in fund balance
Fund balance, beginning of year
Fund balance, end of year
Original Final
Budget Budget Actual
Actual Over
(Under) Final
Budget
695,909
695,909
728,219
32,310
1,182
1,182
6,685
5,503
697,091
697,091
734,904
37,813
100,103
42,605
25,756
(16,849)
219,000
219,000
219,000
23,445
23,445
23,445
-
-
27,498
27,570
72
342,548
312,548
295,771
(16,777)
354,543
384,543
439,133
54,590
(451,000)
(476,000)
(96,793)
379,207
(96,457)
(91,457)
342,340
433,797
211,004
211,004
211,004
-
$ 114,547 $
119,547 $
553,344 $
433,797
95
CITY OF SEBASTIAN, FLORIDA
Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Parking In -Lieu -Of Special Revenue Fund
For the Year Ended September 30, 2018
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Investment earnings
$ 429
$ 429
$ 929
$ 500
Otherrevenues
13,775
13,775
13,776
1
Total revenues
14,204
14,204
14,705
501
Fund balance, beginning of year
39,893
39,893
39,893
-
Fund balance, end of year
$ 54,097
$ 54,097
$ 54,598
$ 501
96
CITY OF SEBASTIAN, FLORIDA
Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Recreation Impact Fee Special Revenue Fund
For the Year Ended September 30, 2018
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Impact fees
$ 163,800 $
163,800 $
141,050
$ (22,750)
Investment earnings
4,880
4,880
12,552
7,672
Total revenues
168,680
168,680
153,602
(15,078)
Other financing uses
Transfers out
(455,000)
(653,045)
(455,784)
197,261
Net change in fund balance
(286,320)
(484,365)
(302,182)
182,183
Fund balance, beginning of year
955,251
955,251
955,251
-
Fund balance, end of year
$ 668,931 $
470,886 $
653,069
$ 182,183
97
CITY OF SEBASTIAN, FLORIDA
Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Stormwater Utility Special Revenue Fund
For the Year Ended September 30, 2018
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Charges for services
$ 998,000
$ 998,000 $
999,092
$ 1,092
Investment earnings
3,535
3,535
15,888
12,353
Total revenues
1,001,535
1,001,535
1,014,980
13,445
Expenditures
Current:
Physical environment
417,988
417,988
231,119
(186,869)
Revenues over expenditures
583,547
583,547
783,861
200,314
Other financing sources (uses)
Transfers in
116,453
116,453
-
(116,453)
Transfers out
(700,000)
(700,000)
(700,000)
Other financing uses
(583,547)
(583,547)
(700,000)
(116,453)
Net change in fund balance
-
-
83,861
83,861
Fund balance, beginning of year
266,603
266,603
266,603
-
Fund balance, end of year
$ 266,603
$ 266,603 $
350,464
$ 83,861
CITY OF SEBASTIAN, FLORIDA
Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Law Enforcement Forfeiture Special Revenue Fund
For the Year Ended September 30, 2018
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Fines
$ 1,000
$ 1,000
$ 550
$ (450)
Investment earnings
145
145
853
708
Total revenues
1,145
1,145
1,403
258
Expenditures
Current:
Public safety
-
-
6,507
6,507
Net change in fund balance
1,145
1,145
(5,104)
(6,249)
Fund balance, beginning of year
49,226
49,226
49,226
Fund balance, end of year
$ 50,371
$ 50,371
$ 44,122
$ (6,249)
CITY OF SEBASTIAN, FLORIDA
Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Stormwater Utility Revenue Bonds Debt Service Fund
For the Year Ended September 30, 2018
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Investment earnings
$ 900
$ 900 $
3,772
$ 2,872
Expenditures
Debt service:
Principal
371,000
371,000
371,000
-
Interest and fiscal charges
33,078
33,078
33,078
Total expenditures
404,078
404,078
404,078
-
Revenues under expenditures
(403,178)
(403,178)
(400,306)
2,872
Other financing sources
Transfers in
403,792
403,792
403,792
-
Net change in fund balance
614
614
3,486
2,872
Fund balance, beginning of year
170,357
170,357
170,357
-
Fund balance, end of year
$ 170,971
$ 170,971 $
173,843
$ 2,872
100
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101
AGENCY FUND
102
CITY OF SEBASTIAN, FLORIDA
Combining Statement of Changes in Assets and Liabilities
Agency Fund
For the Year Ended September 30, 2018
Balance
October 1,
2017 Additions
Performance Deposits
Assets
Cash and cash equivalents
Investments, at fair value
Total assets
Liabilities
Refunds payable
Balance
September 30,
Deletions 2018
$ 6,930 $ - $ (5,180) $ 1,750
73,750 18,590 92,340
$ 80,680 $ 18,590 $ (5,180) $ 94,090
$ 80,680 $ 18,590 $ (5,180) $ 94,090
103
CAPITAL ASSETS
104
CITY OF SEBASTIAN, FLORIDA
Comparative Schedule by Source
Capital Assets Used in the Operation of Governmental Funds
September 30, 2018
Governmental funds capital assets
Land
Buildings and structures
Non -building improvements
Machinery and equipment
Infrastructure
Construction in progress
Total governmental funds capital assets
Investment in governmental funds capital assets (by sources)
Federal grants
State grants
County grants
General Fund
Law enforcement trust fund
Recreational impact fee
Stormwater utility fee
Riverfront redevelopment
Cemetery trust fund
Donations
Sales taxes
Motor fuel taxes
Revenue bond debt
Parking in Lieu of Fee
Capital projects
Total investment in governmental funds capital assets
2018 2017
$ 9,123,041
$ 8,391,050
14,103,789
13,342,052
7,227,964
6,871,238
9,805,299
9,644,089
42,583,530
42,100,211
188,759
381,889
$ 83,032,382 $ 80,730,529
$ 4,483,123
$ 4,507,200
2,940,621
2,852,055
507,031
507,031
12,817,734
13,039,005
97,815
97,815
2,849,566
2,432,716
8,347,685
8,347,685
2,693,061
2,693,061
599,879
592,753
2,931,511
2,938,942
25,566,085
23,648,358
4,501,302
4,376,938
13,816,786
13,816,786
90,621
90,621
789,562
789,563
$ 83,032,382 $ 80,730,529
105
CITY OF SEBASTIAN, FLORIDA
Schedule by Function and Activity
Capital Assets Used in the Operation of Governmental Funds
September 30, 2018
Machinery
Non -Building
and
Functions / Programs
Land
Buildings
Improvements
Equipment
Infrastructure
Total
General government:
Legislative
$
$
$
$ -
$
$
City manager
49,954
49,954
City clerk
4,003
4,003
Administrative services
1,100
3,644
4,744
MIS
5,841
56,151
977,045
1,039,037
Audio visual/broadcast
-
-
18,420
18,420
Facilities maintenance
1,105,233
32,086
405,073
1,542,392
Community development
84,426
-
55,374
139,800
Non -departmental
4,474,459
6,184,991
126,638
209,002
52,699
11,047,789
Total general government
4,474,459
7,380,491
215,975
1,722,515
52,699
13,846,139
Public safety:
Special operations
-
-
-
33,480
-
33,480
Administration
9,560
3,799,272
89,320
433,456
4,331,608
School resource
-
-
-
40,132
40,132
Road patrol
3,007,420
3,007,420
Community policing
11,507
11,507
Code enforcement
-
54,856
54,856
Investigations
1,700
277,507
279,207
Support services
-
50,516
50,516
Communications
16,404
268,045
284,449
Building department
-
-
-
6,295
6,295
Total public safety
9,560
3,799,272
107,424
4,183,214
-
8,099,470
Transportation:
Central garage
-
130,489
115,231
212,887
674
459,281
Roads and drainage
47,125
166,907
1,087,622
1,064,871
19,917,155
22,283,680
Total transportation
47,125
297,396
1,202,853
1,277,758
19,917,829
22,742,961
Economic environment:
Non -departmental
2,308,392
1,040,590
6,562
-
-
3,355,544
Physical environment:
Stormwater
-
-
3,870
1,950,042
20,167,873
22,121,785
Cemetery
572,181
201,153
78,354
72,983
22,717
947,388
Total physical environment
572,181
201,153
82,224
2,023,025
20,190,590
23,069,173
Culture/recreation:
Parks and recreation
1,711,324
1,384,887
5,612,926
598,787
2,422,412
11,730,336
Total
$ 9,123,041
$ 14,103,789
$ 7,227,964
$ 9,805,299
$ 42,583,530
82,843,623
Construction in progress
188,759
Total
$ 83,032,382
106
CITY OF SEBASTIAN, FLORIDA
Schedule of Changes by Function and Activity
Capital Assets Used in the Operation of Governmental Funds
September 30, 2018
Capital Assets
Capital Assets
October 1,
Transfers
Transfers
September 30,
Functions / Programs
2017
Additions
Disposals
In
Out
2018
General government:
Legislative
$ -
$ $
$
$
$ -
City manager
49,954
49,954
City clerk
4,003
4,003
Administrative services
50,354
45,610
4,744
MIS
685,745
152,195
19,744
220,841
1,039,037
Audio visual/broadcast
307,888
-
65,182
-
224,286
18,420
Facilities maintenance
1,092,540
450,966
1,114
-
-
1,542,392
Community development
137,370
-
-
2,430
139,800
Non -departmental
10,287,091
760,698
-
-
-
11,047,789
Total general government
12,614,945
1,363,859
131,650
223,271
224,286
13,846,139
Public safety:
Special operations
38,621
-
5,141
-
-
33,480
Administration
3,862,046
465,353
-
4,209
4,331,608
School resource
42,661
-
2,529
-
40,132
Road patrol
2,934,173
204,909
131,662
3,007,420
Community policing
13,863
-
2,356
11,507
Code enforcement
54,856
-
-
-
54,856
Investigations
255,973
32,925
8,927
764
279,207
Support services
50,516
-
-
-
50,516
Communications
288,762
3,308
7,621
284,449
Building department
20,106
-
13,811
-
-
6,295
Total public safety
7,561,577
706,495
172,047
4,209
764
8,099,470
Transportation:
Engineering
111,415
-
-
-
111,415
-
Central garage
460,081
-
800
-
-
459,281
Roads and drainage
22,438,291
462,214
64,782
80,707
632,750
22,283,680
Total transportation
23,009,787
462,214
65,582
80,707
744,165
22,742,961
Economic environment:
Non -departmental
3,355,544
-
-
-
-
3,355,544
Physical environment:
Stormwater
21,804,638
2,263
53,957
374,184
5,343
22,121,785
Cemetery
941,721
15,617
9,950
-
-
947,388
Total physical environment
22,746,359
17,880
63,907
374,184
5,343
23,069,173
Culture/recreation:
Parks and recreation
11,060,428
484,188
106,463
292,183
-
11,730,336
Total
80,348,640
3,034,636
539,649
974,554
974,558
82,843,623
Construction in progress
381,889
843,316
1,036,446
188,759
Total
$ 80,730,529
$ 3,877,952 $
1,576,095
$ 974,554
$ 974,558
$ 83,032,382
107
STATISTICAL SECTION
108
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109
CITY OF SEBASTIAN, FLORIDA
Statistical Section Table of Contents
This part of the City's Comprehensive Annual Financial Report presents detailed information to assist the
user in understanding what the financial statements, note disclosures and required supplementary
information say about the overall economic condition of the City of Sebastian, Florida.
Page
Financial Trends These schedules contain trend information to help the reader
understand and evaluate how the City's financial condition,
performance and well-being have changed over time. 111
Revenue Capacity These schedules contain information to help the reader assess
the City's ability to generate its most significant local revenue
source, the property tax. 123
Debt Capacity These schedules present information to help the reader assess
the affordability of the City's current levels of outstanding debt
and its ability to issue additional debt in the future. 129
Demographic and These schedules present various demographic and economic
Economic Information indicators to help the reader understand the environment within
which the City operates and how they affect the City's financial
activities. 135
Operating Information These schedules contain information about the City's operations
and resources to help the reader understand how the information
in the City's financial report relates to the services the City
provides and the activities it performs. 139
Sources: Unless otherwise noted, the information in these schedules is derived from the Comprehensive
Annual Financial Report for the relevant year. The City implemented GASB Statement No. 34 in 2001;
schedules presenting government -wide information include data beginning in that year.
110
CITY OF SEBASTIAN, FLORIDA
Net Position by Component
Last Ten Fiscal Years
Governmental activities
Net investment in capital assets
Restricted
Unrestricted
Total governmental activities net position
Business -type activities
Net investment in capital assets
Restricted
Unrestricted
Total business -type activities net position
Primary Government
Net investment in capital assets
Restricted
Unrestricted
Total primary government net position
Fiscal Year
2018 2017 2016 2015 2014
$ 37,568,980 $ 37,461,026 $ 35,886,087 $ 35,220,857 $ 35,210,526
6,419,900 5,113,543 5,209,372 4,997,724 5,115,627
1,649,796 1,236,088 3,615,777 3,467,014 3,330,400
$ 45,638,676 $ 43,810,657 $ 44,711,236 $ 43,685,595 $ 43,656,553
$14,972,789 $ 13,384,969 $ 11,989,666 $ 10,517,895 $ 10,439,804
(777,422) (1,008,976) (717,053) 67,779 (103,116)
$ 14,195,367 $ 12,375,993 $ 11,272,613 $ 10,585,674 $ 10,336,688
$ 52,541,769 $ 50,845,995 $ 47,875,753 $ 45,738,752 $ 45,650,330
6,419,900 5,113,543 5,209,372 4,997,724 5,115,627
872,374 227,112 2,898,724 3,534,793 3,227,284
$ 59,834,043 $ 56,186,650 $ 55,983,849 $ 54,271,269 $ 53,993,241
111
Table 1 - Unaudited
Fiscal Year
2013 2012 2011 2010 2009
$ 32,038,749 $ 31,500,173 $ 31,541,953 $ 28,938,587 $ 26,744,896
5,839,440 6,192,777 5,668,155 8,757,043 8,197,018
4,577,440 3,607,228 4,052,751 3,889,011 4,502,440
$ 42,455,629 $ 41,300,178 $ 41,262,859 $ 41,584,641 $ 39,444,354
$ 10,846,501 $ 11,181,823 $ 11,850,561 $ 11,389,704 $ 10,725,676
- - - 98,320
(306,497) (490,298) (644,620) (342,340) 86,517
$ 10,540,004 $ 10,691,525 $ 11,205,941 $ 11,047,364 $ 10,910,513
$ 42,885,250 $ 42,681,996 $ 43,392,514 $ 40,328,291 $ 37,470,572
5,839,440 6,192,777 5,668,155 8,757,043 8,295,338
4,270,943 3,116,930 3,408,131 3,546,671 4,588,957
$ 52,995,633 $ 51,991,703 $ 52,468,800 $ 52,632,005 $ 50,354,867
112
CITY OF SEBASTIAN, FLORIDA
Changes in Net Position
Last Ten Fiscal Years
Expenses
Governmental activities:
General government
Public safety
Physical environment
Transportation
Economic environment
Culture and recreation
Interest on debt
Total governmental activities expenses
Business -type activities:
Golf Course
Airport
Building
Total business -type activities expenses
Total primary government expenses
Program revenue
Governmental activities:
Charges for services:
General government
Public safety
Physical environment
Culture and recreation
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenue
Business -type activities:
Charges for services:
Golf Course
Airport
Building
Operating grants and contributions
Capital grants and contributions
Total business -type activities program revenue
Total primary government program revenue
Net(expense)revenue
Governmental activities
Business -type activities
Total primary government net
(expense)revenue
Fiscal Year
2018 2017 2016 2015 2014
$ 3,926,479 $ 3,379,369 $ 3,285,607 $ 3,015,536 $ 2,923,398
6,227,299
6,549,037
5,476,136
5,164,197
4,908,374
3,431,933
3,769,377
2,538,752
2,759,461
2,310,539
1,949,882
2,279,149
1,861,946
2,024,814
1,828,569
238,597
106,577
364,675
194,630
247,891
1,279,635
1,326,245
1,191,488
1,293,246
1,229,369
56,523
63,141
82,943
100,468
235,071
17,110,348
17,472,895
14,801,547
14,552,352
13,683,211
1,555,853
1,537,332
1,584,214
1,409,829
1,406,770
1,328,258
1,361,134
1,197,549
1,038,361
1,031,464
664,066
586,752
546,649
531,087
465,717
3,548,177
3,485,218
3,328,412
2,979,277
2,903,951
20,658,525
20,958,113
18,129,959
17,531,629
16,587,162
466,261
362,631
374,581
372,255
407,068
74,216
124,800
98,446
80,763
76,132
1,064,659
1,021,038
1,049,735
1,087,642
1,073,015
52,160
48,781
53,959
67,940
67,371
1,776,070
250,292
323,101
345,937
186,295
181,050
947,274
809,932
994,546
739,785
3,614,416
2,754,816
2,709,754
2,949,083
2,549,666
1,257,047
1,058,939
1,135,357
1,333,189
1,277,660
583,310
499,321
516,403
457,318
470,703
911,643
747,950
810,069
712,620
700,751
115,907
116,055
-
-
-
2,120,953
1,566,737
841,668
702,154
235,215
4,988,860
3,989,002
3,303,497
3,205,281
2,684,329
8,603,276
6,743,818
6,013,251
6,154,364
5,233,995
(13,495,932)
(14,718,079)
(12,091,793)
(11,603,269)
(11,133,545)
1,440,683
503,784
(24,915)
226,004
(219,622)
(12,055,249)
(14,214,295)
(12,116,708)
(11,377,265)
(11,353,167)
113
Table 2 - Unaudited
Fiscal Year
2013 2012 2011 2010 2009
$ 2,784,485
$ 2,640,677
$ 2,766,575
$ 3,309,381
$ 3,169,851
4,928,203
5,025,274
5,546,632
5,720,933
5,420,585
2,039,380
2,007,902
1,558,974
1,947,605
1,347,771
1,845,429
1,800,432
2,263,367
1,863,551
3,437,724
155,214
170,960
208,518
135,885
167,470
1,232,345
1,239,512
1,227,198
1,240,383
1,073,249
368,432
562,496
546,103
566,410
730,100
13,353,488
13,447,253
14,117,367
14,784,148
15,346,750
1,377,039
1,394,731
1,355,266
1,388,158
1,477,299
1,146,905
1,166,588
1,188,788
1,067,525
1,079,869
417,887
397,295
470,406
496,800
533,641
2,941,831
2,958,614
3,014,460
2,952,483
3,090,809
16,295,319
16,405,867
17,131,827
17,736,631
18,437,559
314,158
214,488
197,945
203,915
220,073
67,297
66,474
92,350
118,368
95,606
1,101,864
876,693
868,059
881,338
908,829
70,982
66,954
61,353
62,046
66,540
332,627
187,333
196,534
210,050
228,002
770,123
791,265
838,242
3,178,618
1,865,174
2,657,051
2,203,207
2,254,483
4,654,335
3,384,224
1,302,441
1,394,844
1,382,421
1,335,647
1,406,956
481,759
491,367
485,229
468,698
438,485
706,964
419,705
401,021
356,264
358,947
230,868
150,083
900,340
904,853
1,356,914
2,722,032
2,455,999
3,169,011
3,065,462
3,561,302
5,379,083
4,659,206
5,423,494
7,719,797
6,945,526
(10,696,437)
(11,244,046)
(11,862,884)
(10,129,813)
(11,962,526)
(219,799)
(502,615)
154,551
112,979
470,493
(10,916,236) (11,746,661) (11,708,333) (10,016,834) (11,492,033)
continued...
114
CITY OF SEBASTIAN, FLORIDA
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year
2018
2017
2016
2015
2014
General revenue and other changes in net position
Governmental activities:
Property taxes, levied for general purposes
$ 4,153,194
$ 4,147,115
$ 3,942,048
$ 3,594,210 $
3,248,113
Sales and use taxes
2,808,172
5,945,386
5,762,921
5,555,270
5,320,051
Franchise fees
1,316,792
1,271,403
1,257,430
1,241,515
1,190,233
State shared revenues not restricted
to specific programs
6,887,664
2,616,522
2,466,546
2,365,137
2,208,700
Investment earnings
216,185
135,614
77,317
65,256
43,293
Miscellaneous
312,401
290,269
316,239
240,179
338,901
Transfers
(370,457)
(588,809)
(705,067)
2,988
(14,822)
Total governmental activities
15,323,951
13,817,500
13,117,434
13,064,555
12,334,469
Business -type activities:
Investment earnings
8,234
10,787
6,787
5,368
1,484
Miscellaneous
-
-
-
20,602
-
Transfers
370,457
588,809
705,067
(2,988)
14,822
Total business -type activities
378,691
599,596
711,854
22,982
16,306
Total primary government general revenue
15,702,642
14,417,096
13,829,288
13,087,537
12,350,775
Change in net position
Governmental activities
1,828,019
(900,579)
1,025,641
1,461,286
1,200,924
Business -type activities
1,819,374
1,103,380
686,939
248,986
(203,316)
Total primary government change in net
position
$ 3,647,393
$ 202,801
$ 1,712,580
$ 1,7102272 $
997,608
115
Fiscal Year
2013 2012 2011 2010 2009
$ 3,221,304 $
3,063,495
$ 3,453,778
$ 4,164,128 $
4,801,924
5,123,046
4,852,413
4,751,021
4,765,200
4,670,106
1,118,886
1,124,568
1,184,686
1,228,692
1,327,253
2,063,450
1,934,733
1,868,555
1,825,215
1,821,347
74,650
82,129
111,943
144,432
261,203
315,296
201,538
171,119
149,453
140,512
(37,734)
22,489
-
(7,020)
-
11,878,898
11,281,365
11,541,102
12,270,100
13,022,345
4,391
6,563
4,026
15,658
5,544
274
4,125
-
1,194
-
37,734
(22,489)
-
7,020
-
42,399
(11,801)
4,026
23,872
5,544
11,921,297
11,269,564
11,545,128
12,293,972
13,027,889
1,182,461
37,319
(321,782)
2,140,287
1,059,819
(177,400)
(514,416)
158,577
136,851
476,037
$ 1,005,061 $
(477,097)
$ (163,205)
$ 2,277,138 $
1,535,856
concluded.
116
CITY OF SEBASTIAN, FLORIDA
Fund Balances, Governmental Funds
Last Ten Fiscal Years
Governmental funds
General fund:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total General fund
All other governmental funds:
Nonspendable
Restricted
Committed
Unassigned
Total all other governmental funds
Total governmental funds
Fiscal Year
2018 2017 2016
2015 2014
$ 234,852
$ 342,505
$ 227,651 $
316,036
$ 369,329
77,185
63,016
46,262
38,544
7,969
13,871
12,350
10,840
8,692
7,129
5,047,473
4,089,275
5,526,675
5,289,322
5,348,905
5,373,381
4,507,146
5,811,428
5,652,594
5,733,332
1,542,466
941,061
996,778
928,758
1,390,073
4,822,199
4,131,416
4,193,653
4,181,787
3,756,950
707,667
995,144
977,868
815,688
625,007
(3,048)
(26,370)
(129,401)
(58,618)
(64,875)
7,069,284 6,041,251 6,038,898 5,867,615 5,707,155
$ 12,442,665 $ 10,548,397 $ 11,850,326 $ 11,520,209 $ 11,440,487
117
Table 3 - Unaudited
Fiscal Year
2013
2012
2011
2010
2009
$ 368,564
$ 370,450
$ 346,995
$ 352,248
$ 357,696
28,632
-
-
-
-
-
2,861,708
2,949,139
3,063,585
3,083,463
7,020
35,707
21,911
31,656
1,983
5,065,242
1,734,307
1,784,413
2,164,910
2,324,972
5,469,458
5,002,172
5,102,458
5,612,399
5,768,114
1,323,838
1,289,693
1,494,779
859,463
830,029
4,647,950
4,371,826
4,748,376
7,897,580
8,557,389
589,364
719,686
-
-
-
6,561,152 6,381,205 6,243,155 8,757,043 9,387,418
$ 12,030,610 $ 11,383,377 $ 11,345,613 $ 14,369,442 $ 15,155,532
118
CITY OF SEBASTIAN, FLORIDA
Changes in Fund Balances, Governmental Funds
For the Last Ten Fiscal Years
Fiscal Year
2018
2017
2016
2015
2014
Revenues
Taxes
$ 6,961,366
$ 10,738,778
$ 10,326,654
$ 9,782,109
$ 9,123,879
Franchise fees
1,316,792
1,271,403
1,257,430
1,241,515
1,190,233
Licenses, fees and permits
165,922
135,900
136,614
147,219
138,564
Intergovernmental
8,648,064
2,991,190
2,709,066
2,742,950
2,373,695
Impact fees
141,050
102,700
163,800
281,450
168,350
Charges for services
1,443,123
1,353,009
1,391,495
1,397,395
1,431,101
Fines
48,251
96,842
73,059
63,035
54,140
Investment earnings
216,185
135,614
77,317
65,256
43,293
Contributions and donations
55,670
45,420
80,581
48,124
36,801
Otherrevenues
312,401
290,269
316,239
241,597
338,901
Total revenues
19,308,824
17,161,125
16,532,255
16,010,650
14,898,957
Expenditures
Current:
General government
3,492,883
2,943,790
3,053,554
2,717,049
2,575,605
Public safety
5,659,861
5,134,388
4,968,258
4,666,343
4,623,060
Physical environment
2,195,332
2,565,532
1,316,697
1,498,706
1,110,788
Transportation
1,079,509
1,333,927
1,168,919
1,187,871
1,165,004
Economic environment
238,597
73,491
331,589
161,545
144,612
Culture and recreation
875,172
927,374
849,789
893,394
888,795
Debt service:
Principal
590,000
931,000
1,935,000
1,567,000
2,306,000
Interest
56,523
68,512
92,907
108,678
413,995
Capital outlay
2,856,222
3,896,231
1,780,358
3,133,330
2,246,399
Total expenditures
17,044,099
17,874,245
15,497,071
15,933,916
15,474,258
Revenues over (under) expenditures
2,264,725
(713,120)
1,035,184
76,734
(575,301)
Other financing sources (Uses)
Issuance of long-term debt
-
-
-
-
-
Transfers in
4,427,037
7,184,858
3,694,279
4,989,726
3,903,204
Transfers out
(4,797,494)
(7,773,667)
(4,399,346)
(4,986,738)
(3,918,026)
Total other financing sources (uses)
(370,457)
(588,809)
(705,067)
2,988
(14,822)
Net change in fund balances
$ 1,894,268
$ (1,301,929)
$ 330,117
$ 79,722
$ (590,123)
Debt service as a percentage of
noncapital expenditures (,)
4.6%
7.2%
14.8%
13.1%
20.6%
To calculate the ratio, divide the total debt service expenditures (principal plus interest) by total noncapital
expenditures (the difference between the total expenditures and capitalized capital outlay expenditure).
119
Table 4 - Unaudited
Fiscal Year
2013
2012
2011
2010
2009
$ 8,894,880
$ 8,465,990
$ 8,762,729
$ 9,525,074
$ 10,065,806
1,118,886
1,124,568
1,184,686
1,228,692
1,327,253
45,500
22,431
1,121,967
1,154,739
1,186,161
2,411,395
2,088,038
23,646
33,182
29,151
169,000
58,500
81,534
90,948
88,938
1,462,522
1,158,075
2,249,447
4,572,550
3,270,854
60,190
57,575
42,250
26,000
13,975
78,411
86,516
-
-
3,849
22,406
216,091
103,795
228,216
250,914
315,296
201,888
224,823
169,039
176,430
14,578,486
13,479,672
13,794,877
17,028,440
16,413,331
2,447,893
2,410,345
2,539,211
2,699,289
2,976,896
4,425,000
4,523,802
5,030,708
4,938,147
4,926,714
1,075,162
1,042,349
1,166,309
1,210,823
1,448,067
1,158,945
1,208,411
1,217,521
1,405,310
1,696,254
122,730
138,531
188,918
129,352
167,470
847,781
876,502
903,836
977,780
1,148,408
1,307,000
3,321,000
1,203,000
2,142,190
1,218,995
393,447
472,399
521,152
577,593
706,093
2,115,561
1,767,058
4,048,051
6,189,026
6,495,271
13,893,519
15,760,397
16,818,706
20,269,510
20,784,168
684,967
(2,280,725)
(3,023,829)
(3,241,070)
(4,370,837)
-
2,296,000
-
2,462,000
-
3,598,949
3,694,765
5,376,658
4,486,626
5,196,376
(3,636,683)
(3,672,276)
(5,376,658)
(4,493,646)
(5,196,376)
(37,734)
2,318,489
2,454,980
$ 647,233
$ 37,764
$ (3,023,829)
$ (786,090)
$ (4,370,837)
14.4%
27.1%
13.5%
19.3%
13.5%
120
CITY OF SEBASTIAN, FLORIDA
Program Revenues by Function/Program
Last Ten Fiscal Years
Program revenues
Governmental activities:
General government
Public safety
Physical environment
Transportation
Economic environment
Culture and recreation
Total governmental activities
Business -type activities:
Charges for services:
Golf Course
Airport
Building'
Total business -type activities
Total primary government
Fiscal Year
2018 2017 2016 2015 2014
$ 1,997,400 $
390,921 $
479,395 $
534,524 $
413,727
346,239
334,270
306,381
254,381
246,010
1,064,659
1,021,038
12049,735
1,087,642
1,073,015
12,908
687,310
656,484
643,146
565,692
-
15,501
193,210
321,277
217,759
429,390
235,721
32614,416
2,754,816
22709,754
2,949,083
2,549,666
1,355,652
1,170,591
1,135,357
1,333,189
1,277,660
2,704,263
2,070,461
1,358,071
1,159,472
705,918
928,945
747,950
810,069
712,620
700,751
4,988,860
3,989,002
3,303,497
3,205,281
2,684,329
$ 8,603,276 $ 6,743,818 $ 6,013,251 $ 6,154,364 $ 5,233,995
121
Table 5 - Unaudited
Fiscal Year
2013 2012 2011 2010 2009
$ 471,299 $
230,550
$ 243,039 $
209,144 $
226,003
233,309
228,392
234,437
304,630
299,119
1,101,864
876,693
930,018
881,338
1,408,829
560,713
560,055
743,383
614,305
612,335
-
13,998
-
2,556,872
6,000
289,866
293,519
103,606
88,046
831,938
2,657,051
2,203,207
2,254,483
4,654,335
3,384,224
1,302,441
1,394,892
1,382,421
1,335,647
1,406,955
712,627
641,455
1,385,569
1,373,551
1,795,399
706,964
426,215
401,021
356,264
358,948
2,722,032
2,462,562
3,169,011
3,065,462
3,561,302
$ 5,379,083 $ 4,665,769 $ 5,423,494 $ 7,719,797 $ 6,945,526
122
CITY OF SEBASTIAN, FLORIDA
Tax Revenues by Source
Governmental Funds
For the Last Ten Fiscal Years
(Rate per $1,000 of assessed value)
Table 6 - Unaudited
Public
Property
Tax Year
Fiscal Year
Utility Z
Taxes'
Total
2008
2009
$ 2,341,458
$ 4,801,924 $
7,143,382
2009
2010
2,437,050
4,164,128
6,601,178
2010
2011
2,392,345
3,453,778
5,846,123
2011
2012
2,387,553
3,063,495
5,451,048
2012
2013
2,534,434
3,221,304
5,755,738
2013
2014
2,581,427
3,248,113
5,829,540
2014
2015
2,638,711
3,594,210
6,232,921
2015
2016
2,686,322
3,942,048
6,628,370
2016
2017
2,708,980
4,147,115
6,856,095
2017
2018
2,808,172
4,153,194
6,961,366
Mi llage
Rate
3.3456
3.3456
3.3041
3.3041
3.7166
3.7166
3.8556
3.8556
3.8000
3.4000
' Property taxes comprise the City's largest and most significant own -source revenue.
z Public utility taxes include a 10% tax on electric, water, gas and propane purchases, plus a communication
services tax.
123
CITY OF SEBASTIAN, FLORIDA
Direct and Overlapping Property Tax Rates
For the Last Ten Fiscal Years
(Rate per $1,000 of taxable value)
Table 7 - Unaudited
City
Direct Rates
Overlapping Rates
County School Board
Tax
Fiscal
Basic
Debt
Total
Total
Basic
Debt
Year
Year
Rate
Service
Direct
County'
Rate
Service
Total
Other2
2008
2009
3.3456
0.0000
3.3456
6.2861
6.7600
0.2800
7.0400
1.11204
2009
2010
3.3456
0.0000
3.3456
6.2693
7.2960
0.3000
7.5960
1.33570
2010
2011
3.3041
0.0000
3.3041
6.2860
7.9200
0.3000
8.2200
1.35050
2011
2012
3.3041
0.0000
3.3041
6.9590
7.8940
0.3500
8.2440
1.35460
2012
2013
3.7166
0.0000
3.7166
6.2572
7.9230
0.3900
8.3130
1.35460
2013
2014
3.7166
0.0000
3.7166
5.6207
8.1160
-
8.1160
1.71280
2014
2015
3.8556
0.0000
3.8556
5.6868
7.9950
7.9950
1.71260
2015
2016
3.8556
0.0000
3.8556
5.9468
7.9550
7.9550
1.69930
2016
2017
3.8000
0.0000
3.8000
5.9755
7.4100
7.4100
1.51700
2017
2018
3.4000
0.0000
3.4000
6.1214
7.0530
7.0530
1.53900
Note:
Tax rates are uniformly applied to taxable values based on a single millage rate determined by each taxing entity. The millage rate is expressed as $1.00
per $1,000 of the taxable value.
' Millage includes General Fund, MSTUs, Emergency Services District and Land Bonds
2 All Special Taxing Districts
Source: Indian River County Property Tax Collector's Office
124
CITY OF SEBASTIAN, FLORIDA
Actual and Estimated Value of Taxable Property
For the Last Ten Fiscal Years
Real Property
Personal Property
Tax
Fiscal
Assessed
Estimated
Assessed
Estimated
Year
Year
Value
Actual Value
Value
Actual Value
2008
2009
$ 1,933,934,630
$ 2,417,418,288 $
62,476,508
$ 62,476,508
2009
2010
1,650,311,449
2,062,889,311
56,920,223
56,920,223
2010
2011
1,392,267,434
1,740,334,293
55,234,086
55,234,086
2011
2012
1,273,059,710
1,591,324,639
48,922,492
48,922,492
2012
2013
1,210,328,690
1,512,910,863
47,410,545
47,410,545
2013
2014
1,267,035,970
1,583,794,963
53,045,209
53,045,209
2014
2015
1,363,105,220
1,703,881,525
55,646,868
55,646,868
2015
2016
1,447,311,640
1,809,139,550
59,305,756
59,305,756
2016
2017
1,578,743,546
1,973,429,433
62,277,711
62,277,711
2017
2018
1,705,459,458
2,131,824,323
66,819,663
66,819,663
Source: Indian River County Property Appraiser
Ratio of Taxable to Actual Value
58%
57%
57.5%
56% 66.7PC
55.0%
55% _ 54.2% 55.5%
54% r, 5% 55.0%
53.Z% / 4.1%
53% _ 52.6%
52%
51%
50%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Fiscal Year
125
Table 8 - Unaudited
Less:
Total
Total
Total
Ratio of
Tax -Exempt
Taxable
Direct Tax
Estimated
Taxable to
Property
Value
Rate
Actual Value
Actual Value
676,808,522 $
1,319,602,616
3.3456
$ 2,479,894,796
53.2%
558,090,532
1,149,141,140
3.3456
2,119,809,534
54.2%
460,752,786
986,748,734
3.3041
1,795,568,379
55.0%
444,524,142
877,458,060
3.3041
1,640,247,130
53.5%
437,040,114
820,699,121
3.7166
1,560,321,408
52.6%
435,071,311
885,009,868
3.7166
1,636,840,172
54.1%
451,939,888
966,812,200
3.8556
1,759,528,393
55.0%
468,930,126
1,037,687,270
3.8556
1,868,445,306
55.5%
486,428,425
1,154,592,832
3.8000
2,035,707,144
56.7%
509,133,351
1,263,145,770
3.4000
2,198,643,986
57.5%
126
CITY OF SEBASTIAN, FLORIDA Table 9 - Unaudited
Principal Property Taxpayers
Current Year and Nine Years Ago
2018 Fiscal Year
2009 Fiscal Year
Percentage
Percentage
of Total City
of Total City
Taxable
Taxable
Taxable
Taxable
Taxpayer
Value
Rank
Value
Value
Rank
Value
Florida Power 8 Light (Utility/Electric)
$ 29,340,544
1
2.32 %
$ 15,809,386
1
1.38 %
Comcast of Florida, Inc. (Communications)
10,594,162
2
0.84
-
-
-
Wal-Mart Stores, Inc. (Retail)
8,673,428
3
0.69
13,404,610
2
1.17
Sebastian Senior Real Estate, LLC (Senior Group Home)
7,743,469
4
0.61
-
-
-
Park Place Community, LLC (Rental/Retail)
6,698,973
5
0.53
6,896,210
6
0.60
BW US 1, Inc. (Commercial)
6,107,095
6
0.48
6,946,560
5
0.60
PSM Sebastian, LLC
5,584,728
7
0.44
-
-
-
MPA Sebastian, LLC
5,062,258
8
0.40
Hartwell Groves, Inc. (Agriculture)
5,014,395
9
0.40
Sebastian Inlet Marina Et Trading Co, Inc.
(Restaurant/Hotel)
4,561,540
10
0.36
IPF/Sebastian LLC (Retail)
-
-
-
9,743,746
3
0.85
Bellsouth Communications (Utility/Telephone)
7,153,062
4
0.62
KB Homes Treasure Coast LLC (Construction)
6,600,600
7
0.57
512 Commerce Center LLC (Construction)
6,177,200
8
0.54
Chance Holding LLC (Development)
5,492,320
9
0.48
Pelican Isles Limited Partnership (Rental)
5,066,610
10
0.44
$ 89,380,592
7.07 %
$ 83,290,304
7.25 %
Total Taxable Value
$1,263,145,770
$ 1,149,141,140
Source: Indian River County Property Appraiser
Concentration of 2018 Taxpayers
92.93%
■Top Ten Taxpayers
7.07%
0All Other Taxpayers
127
CITY OF SEBASTIAN, FLORIDA
Property Tax Levies and Collections
For the Last Ten Fiscal Years
Table 10 - Unaudited
Collected within the
Fiscal Year of the Levy
Total Collections to Date
Taxes Levied
Delinquent and
Tax
Fiscal
for the
Percentage
Penalty Tax
Percentage
Year
Year
Fiscal Year
Amount of Levy
Collections
Amount
of Levy
2008
2009
$ 4,441,535 $
4,225,106 95.13
$ 1,694 $
4,226,800
95.17
2009
2010
3,844,658
3,716,797 96.67
17,723
3,734,520
97.14
2010
2011
3,260,316
3,144,864 96.46
11,294
3,156,158
96.81
2011
2012
2,899,209
2,799,146 96.55
9,279
2,808,425
96.87
2012
2013
3,050,099
2,947,248 96.63
7,733
2,954,981
96.88
2013
2014
3,074,729
2,975,299 96.77
754
2,976,053
96.79
2014
2015
3,422,716
3,295,549 96.28
2,241
3,297,790
96.35
2015
2016
3,738,202
3,530,235 94.44
72,789
3,603,024
96.38
2016
2017
3,943,212
3,726,976 94.52
77,898
3,804,874
96.49
2017
2018
3,920,640
3,703,536 94.46
83,126
3,786,662
96.58
Source: Indian
River County Property
Appraiser and Department of Revenue, Certification
of Final Taxable Value,
DR-422.
Total Tax Collections
20
18
16
14
c 12
0 10
8
6
4
1 -
2 =
2009
2010 2011
2012 2013 2014 2015
2016 2017
2018
Fiscal Year
128
CITY OF SEBASTIAN, FLORIDA
Ratios of Outstanding Debt By Type
For the Last Ten Fiscal Years
Table 11 - Unaudited
Business -Type
Activities
Roadway
Infrastructure
Stormwater
Golf Course
Total
Percentage
Fiscal
Improvement
Sales Tax
Utility Revenue
Revenue
Primary
of Personal
Per
Year
Notes
Bonds/Notes
Bonds/Notes
Bonds
Government
Income
Capita
1
1
2009
$ 1,089,203
$ 7,725,000
$ 4,315,000
$ 300,000
$ 13,429,203
0.0021%
591
2010
2,414,000
6,980,000
4,055,000
-
13,449,000
0.0020%
587
2011
2,246,000
6,215,000
3,785,000
12,246,000
0.0017%
558
2012
2,296,000
5,420,000
3,505,000
11,221,000
0.0015%
510
2013
2,099,000
4,600,000
3,215,000
9,914,000
0.0013%
447
2014
1,896,000
2,730,000
2,982,000
7,608,000
0.0008%
341
2015
1,689,000
1,722,000
2,630,000
6,041,000
0.0006%
267
2016
1,478,000
353,000
2,275,000
4,106,000
0.0003%
193
2017
1,263,000
-
1,912,000
3,175,000
0.0003%
131
2018
1,044,000
1,541,000
2,585,000
2
105
The Infrastructure
Sales Tax and
Stormwater Utility Revenue Bonds
were refunded in
2014 with Bank
Notes.
2
Information not
yet available.
Millions
80.00
60.00
40.00
Primary Government Debt
20.00
�t ♦
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Fiscal Year
129
CITY OF SEBASTIAN, FLORIDA
Ratios of General Bonded Debt Outstanding
For the Last Ten Fiscal Years
General
Bonded Debt Outstanding
Fiscal
Applicable
Legal
Year
Debt Limit
to Limit
Debt Margin
2009
$ 65,980,131
$ 13,129,203
$ 52,850,928
2010
57,457,057
13,449,000
44,008,057
2011
49,337,437
12,246,000
37,091,437
2012
43,872,903
11,221,000
32,651,903
2013
41,034,956
9,914,000
31,120,956
2014
44,250,493
7,608,000
36,642,493
2015
48,340,610
6,041,000
42,299,610
2016
51,884,364
4,106,000
47,778,364
2017
57,729,642
3,175,000
54,554,642
2018
63,157,289
2,585,000
60,572,289
Table 12 - Unaudited
Percentage of
Per
Debt Limit
Capita
19.90%
$ 2,326
23.41%
1,920
24.82%
1,691
25.58%
1,485
24.16%
1,403
17.19%
1,643
12.50%
1,870
7.91%
2,065
5.50%
2,255
4.09%
2,459
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
130
CITY OF SEBASTIAN, FLORIDA
Legal Debt Margin Information
For the Last Ten Fiscal Years
Legal Debt Margin as a Percentage of Debt Limit
Debt limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the
limit as a percentage of debt limit
Fiscal Year
2018
2017
2016
2015
2014
$ 63,157,289
$ 57,729,642
$ 48,340,610
$ 48,340,610
$ 44,250,493
2,585,000
3,175,000
6,041,000
6,041,000
7,608,000
$ 60,572,289
$ 54,554,642
$ 42,299,610
$ 42,299,610
$ 36,642,493
4.09%
5.50%
12.50%
12.50%
17.19%
Legal Debt Margin Calculation for Fiscal Year 2018
Assessed value
$1,772,279,121
Less: Exempt property
(509,133,351)
1,263,145,770
Debt limit (5% of assessed value)
63,157,289
Debt applicable to limit:
Revenue bonds/notes
2,585,000
Total net debt applicable to limit 2,585,000
Legal debt margin $ 60,572,289
Direct and Overlapping Governmental Activities Debt - General Obligations Bonds
The City of Sebastian has no overlapping general obligation bonded debt for the year ended September 30, 2018.
131
Table 13 - Unaudited
Fiscal Year
2013 2012 2011 2010 2009
$ 41,034,956 $ 43,872,903 $ 49,337,437 $ 57,457,057 $ 65,980,131
9,914,000 11,221,000 12,246,000 13,449,000 13,129,203
$ 31,120,956 $ 32,651,903 $ 37,091,437 $ 44,008,057 $ 52,850,928
24.16% 25.58% 24.82% 23.41% 19.90%
132
CITY OF SEBASTIAN, FLORIDA
Pledged Revenue Coverage
For the Last Ten Fiscal Years
Recreational Facilities Improvement and Refunding Revenue Bonds, Series 2001
Debt Service
Less:
Net
Fiscal
Gross
Operating
Available
Year
Revenue'
Expenses7
Revenue
Principal Interest Total
2009
$ 1,408,535
$ 1,178,144
$ 230,391
$ 570,000 $ 49,860 $ 619,860
2010
1,341,555
1,129,651
211,904
300,000 21,700 321,700
2011
-
-
-
- - -
2012
2013
2014
2015
2016
2017
2018
Coverage 3
0.37
0.66
Note: Detail regarding the City's outstanding debt can be found in the notes to the financial statements.
Total revenues including charges for services, rents and interest.
Z Total direct operating expenses excludes depreciation, amortization, annual Airport lease payment and one time hurricane repair cost.
3 Required coverage was 1.25. Final payment was made on September 30, 2010.
4 Total revenues consist of stormwater utility fees and interest.
5 Required coverage was 1.35. Bank notes were used in 2011 to refund the bonds.
133
13
Table 14 - Unaudited
Stormwater Utility Revenue Bonds, Series 2003
Debt Service
Gross
Revenues4
Principal
Interest
Total
Coverage 5
814,419
$ 255,000
$ 185,135
$ 440,135
1.85
858,664
260,000
177,485
437,485
1.96
816,415
270,000
169,035
439,035
1.86
810,382
280,000
159,248
439,248
1.84
1,007,221
290,000
148,048
438,048
2.30
134
CITY OF SEBASTIAN, FLORIDA
Demographic and Economic
Statistics
For the Last Ten Calendar
Years
Personal
Per
Income
Capita
Median
(thousands
Personal
Household
Year
Population
of dollars)'
Income'
Income'
2009
22,722
$ 6,534,146 $
47,689
$ 43,685
2010
22,922
6,737,286
48,276
47,525
2011
21,929
7,080,348
50,977
42,053
2012
21,995
7,429,653
52,855
42,638
2013
22,188
7,731,263
54,448
44,326
2014
22,296
9,139,902
63,140
47,548
2015
22,622
10,055,169
68,653
49,887
2016
23,137
10,380,777
71,181
49,813
2017
24,192
11,312,198
73,274
51,797
2018
24,630
4
4
4
State
School
Unemployment
Unemployment
Enrollment z
Rate'
Rate
3,751
14.5
11.2
5,167
14.5
11.3
5,228
13.4
10.6
5,208
11.8
8.6
6,739
8.8
6.9
6,034
6.5
5.6
5,930
6.1
4.8
6,132
6.2
4.8
6,122
4.3
3.7
6,459
3.9
3.3
Sources:
' Florida Research Et Economic Database (FRED). Information available for Indian River County Only.
z Indian River County School Board
3 Indian River County Property Appraiser
4 Information not yet available.
Note: School enrollment consists of Sebastian River High School, Sebastian River Middle School, Liberty Magnet,
Treasure Coast Elementary, Pelican Island Elementary, Sebastian Elementary, Storm Grove Middle School and
Sebastian Charter Junior High School.
135
Table 15 - Unaudited
Property
Total
Taxes
Taxable
Per
Property
Capita
Value 3
211.33 $ 1,319,602,616
181.67
1,149,141,140
157.50
986,748,734
139.28
877,458,060
145.18
820,699,121
145.68
885,009,868
158.88
966,812,200
170.38
1,037,687,270
171.43
1,154,592,832
168.62
1,263,145,770
136
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137
CITY OF SEBASTIAN, FLORIDA
Principal Employers
Current Year and Nine Years Ago
Employer Employees
School District of Indian River County (Government)
2,407
Indian River Medical Center (Healthcare)
2,099
Indian River County (Government)
1,441
Publix Supermarkets (Food/Beverage)
1,300
Piper Aircraft, Inc. (Manufacturer)
950
Wal-Mart (Retail)
736
Sebastian River Medical Center (Healthcare)
595
John's Island (Residential/Resort)
580
Medical Data Systems (Collection Agency)
500
Visiting Nurse Association (Healthcare)
432
City of Vero Beach (Government)
395
Indian River Estates (Retirement/Life care)
350
CVS Warehouse/ Distri butior (Distribution)
300
BStW Quality Growers (Agricultural;
230
Flight Safety International (Education)
180
City of Sebastian (Government)
178
Captain Hirams (Restaurant/Resort;
174
Disney Vero Beach (Resort Hotel)
155
Saint Edward's School (Education)
150
Grand Harbor Management (Developer)
139
Dodgertown Complex (Sports)
-
Macho Products, Inc./MDI (Manufacture;
13,291
Total Average County Employees 62,239
Source: Indian River County Community Development Report
Note: Principal employers information available for Indian River County Only
2018
Percentage of
Total County
Rank Employment
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
3.87
3.37
2.32
2.09
1.53
1.18
0.96
0.93
0.80
0.69
0.63
0.56
0.48
0.37
0.29
0.29
0.28
0.25
0.24
0.22
21.35
Employees
2,295
1,671
1,706
1,104
1,063
404
380
475
188
348
561
442
325
235
155
199
301
237
312
293
185
12,879
62,237
Table 16 - Unaudited
2009
Percentage of
Total County
Rank Employment
1
3.69
3
2.68
2
2.74
4
1.77
5
1.71
9
0.65
10
0.61
7
0.76
20
0.30
11
0.56
6
0.90
8
0.71
12
0.52
17
0.38
21
0.25
18
0.32
14
0.48
16
0.38
13
0.50
15
0.47
19
0.30
20.68
138
CITY OF SEBASTIAN, FLORIDA
Full -Time Equivalent City Government Employees By Function/Program
For the Last Ten Fiscal Years
Full-time Equivalent Employees as of September 30
Function
2018
2017
2016
2015
2014
2013
General government
City council
2.5
2.5
2.5
2.5
2.5
2.5
City manager
2.0
2.5
2.5
2.0
2.0
2.0
City clerk
2.5
2.5
3.0
5.0
5.0
3.0
City attorney
-
-
-
-
-
-
Administrative Services
6.0
6.0
4.0
5.5
5.5
5.0
Finance
-
-
-
-
-
-
Management information
5.0
2.0
2.0
2.0
2.0
3.0
Audio/visual
-
2.5
1.0
-
-
-
Human resources
-
-
-
-
-
-
Facilities maintenance
3.0
2.5
3.5
5.0
5.0
4.0
Community development
4.0
3.0
2.0
4.0
4.0
3.0
Public safety
Police
64.0
57.5
57.5
57.0
57.0
55.5
Building
7.5
5.0
5.0
5.0
5.0
5.0
Code enforcement
3.0
3.0
3.0
3.0
3.0
3.0
Transportation
Roads and drainage
9.5
11.5
11.0
10.0
10.0
10.0
Fleet management
3.5
3.5
3.5
3.5
3.5
3.5
Airport
2.0
3.0
1.0
1.0
1.0
2.0
Physical environment
Cemetery
2.0
1.5
2.0
2.0
2.0
2.0
Engineering
-
-
-
-
-
-
Stormwater utility
14.5
8.0
9.0
9.0
9.0
9.0
Culture and recreation
Leisure services
21.0
18.0
19.0
20.0
20.0
20.0
Golf course
11.0
13.0
10.0
10.0
10.0
10.0
Total
163.0
147.5
141.5
146.5
146.5
142.5
Source: City of Sebastian, Florida 2009-2018 Annual Budgets
Method: Using 1.0 for each full-time employee and 0.5 for each part-time and seasonal employee.
139
Table 17 - Unaudited
Full-time Equivalent Employees as of September 30
2012 2011 2010 2009
2.5
2.5
2.5
2.5
2.0
2.0
2.5
2.5
3.0
3.0
3.0
3.0
-
-
-
2.0
5.0
5.0
5.0
-
-
-
-
5.0
3.0
4.0
3.0
3.0
-
-
-
2.0
3.0
2.0
2.0
2.0
3.0
4.0
5.0
5.0
55.0
58.0
58.0
59.0
4.0
5.0
5.0
5.0
3.0
3.0
2.5
2.5
10.0
12.0
12.0
10.0
3.5
2.5
3.5
3.5
3.0
3.0
3.0
3.0
1.0
1.0
2.0
2.0
-
-
-
7.0
9.0
12.0
12.0
11.0
20.0
21.0
23.0
23.5
10.0
10.5
10.5
9.0
140.0
150.5
154.5
162.5
140
CITY OF SEBASTIAN, FLORIDA
Operating Indicators By Function/Program
For the Last Ten Fiscal Years
Fiscal Year
Function 2018 2017 2016 2015
General government
Number of annexations approved
Acres of annexed property - - -
Purchase orders issued 355 289 328 254
Public Safety
Police
Physical arrests
516
356
258
287
Traffic violations
3,678
3,192
3,065
31725
Parking violations
55
49
73
60
Building
Construction permits issued
167
147
191
142
Estimated value of construction (in millions) $
39.8 $
37.2 $
43.4 $
40.6 $
Transportation
Road maintenance (man hours)
1,600
250
250
200
Asphalt for road maintenance (tons)
120
20
20
10
Physical environment
Cemetery
Cemetery internments
60
62
61
71
Grave deeds sold
30
29
39
43
Stormwater
Swales maintained (miles)
150
300
300
300
Ditches maintained (miles)
80
80
75
75
Road crossings maintained
50
70
68
68
Culture and recreation
Program participants
6,495
6,268
7,280
71647
Number of discount cards
643
657
631
653
Number of golf course memberships
123
119
127
93
Average daily golf revenue $
3,100 $
3,100 $
3,100 $
3,653 $
Sources: City of Sebastian Police Department, Growth Management, Public Works, Golf Course and Building Department.
' New commercial and residential only.
2014
242
347
4,587
29
175
40.0
200
20
67
47
280
50
68
7,571
653
84
3,500
141
Table 18 - Unaudited
Fiscal Year
2013 2012 2011 2010 2009
2
1
3
4.00
-
-
5.90
26.00
233
201
228
216
288
440
441
500
487
543
4,491
4,319
5,941
4,083
4,849
80
167
242
87
50
170
66
51
36
23
$ 35.9 $
14.7 $
10.2 $
6.6 $
5.1
300
500
700
1,264
600
30
50
50
103
328
65
65
54
66
74
38
38
34
33
39
280
280
280
280
280
50
50
50
50
50
50
50
40
40
30
8,113
9,713
8,649
11,701
13,465
710
786
735
844
879
86
88
94
96
95
$ 3,569 $
3,822 $
3,787 $
3,673 $
4,000
142
CITY OF SEBASTIAN, FLORIDA
Capital Asset Statistics By Function/Program
For the Last Ten Fiscal Years
Fiscal Year
Function
2018
2017
2016
2015
2014
General Government
Square footage occupiec
21,500
21,500
21,500
21,500
21,500
Departmental vehicles
6
6
4
5
5
Public safety
Police stations
1
1
1
1
1
Police department Square footage
25,600
25,600
25,600
25,600
25,600
Building department Square footage
2,500
2,500
2,500
2,500
2,500
Police vehicles
71
71
70
66
62
Building inspector vehicles
4
4
4
4
3
Transportation
Streets (miles)
156
156
156
156
156
Streetlights'
1,100
1,100
1,085
1,085
1,085
Airport vehicles
5
4
4
3
1
Public service vehicles
13
12
12
12
15
Physical environment
Public service vehicles
18
19
17
17
10
Culture and recreation
Parks vehicles
5
5
6
18
18
Recreation centers
2
2
2
2
2
Park acreage
315.01
315.01
315.01
315.01
315.01
Recreation center square footage
4,859
4,859
4,859
4,859
4,859
Park maintenance vehicles
12
12
12
12
9
Golf course vehicles
1
Sources: City of Sebastian Administrative Services Department and Park and Recreation Divisio
' This number represents actual unmetered street lights in the City (source: Florida Power &t Light - January billing
143
Table 19 - Unaudited
Fiscal Year
2013
2012
2011
2010
2009
21,500
21,500
21,500
21,500
21,500
6
1
3
3
3
1
1
1
1
1
25,600
25,600
25,600
25,600
25,600
2,500
2,500
2,500
2,500
2,500
61
66
67
63
63
3
3
3
3
4
156
156
156
156
156
1,080
1,228
1,236
1,230
1,240
1
1
1
1
1
17
17
19
22
18
10
9
9
15
7
18
18
18
18
18
2
2
2
2
2
315.01
315.01
315.01
315.01
233.79
4,859
4,859
4,859
4,859
4,859
12
13
14
13
13
1
1
1
1
1
144
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145
INTERNAL CONTROL AND COMPLIANCE
146
This page intentionally left blank.
147
►'- Rehmann
Rebmann Robson
5070 North Highway A1A,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
March 8, 2019
Honorable Mayor and
Members of City Council
City of Sebastian
Sebastian, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States, the financial statements of the
governmental activities, the business -type activities, each major fund, and the aggregate remaining
fund information of the City of Sebastian, Florida (the "City"), as of and for the year ended
September 30, 2018, and the related notes to the financial statements, which collectively comprise
the City's basic financial statements, and have issued our report thereon dated March 8, 2019.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal
control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City's
internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal
control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies,
in internal control that is less severe than a material weakness, yet important enough to merit
attention by those charged with governance.
Rebmann is an independent member of Nexia International.
A member at
Nexia
international
CPAs & Consultants Wealth Advisors Corporate Investigators
148
Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies
may exist that were not identified. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion
on compliance with those provisions was not an objective of our audit, and accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance or other
matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
City's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
444,e, r4a4V— LAC
149
►'-Rehmann
INDEPENDENT AUDITORS'
MANAGEMENT LETTER
March 8, 2019
Honorable Mayor and
Members of City Council
City of Sebastian
Sebastian, Florida
Report on the Financial Statements
Rebmann Robson
5070 North Highway A1A,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the financial statements of the City of Sebastian, Florida as of and for the fiscal year
ended September 30, 2018 and have issued our report thereon dated March 8, 2019.
Auditors' Responsibility
We conducted our audit in accordance with United States generally accepted auditing standards; the
standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States and Chapter 10.550, Rules of the Auditor General,
Other Reports and Schedule
We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance
with Government Auditing Standards; Independent Auditors' Report on Compliance for Each Major
Federal Program and Report on Internal Control over Compliance; Schedule of Findings and Questioned
Costs; and Independent Accountants' Report on an examination conducted in accordance with AICPA
Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with
Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are
dated March 8, 2019, should be considered in conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)l., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address findings and recommendations made in the preceding
annual financial audit report. There were no findings or recommendations in the preceding annual
financial audit report.
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Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in
this management letter, unless disclosed in the notes to the financial statements. The legal authority
for the City of Sebastian, Florida is disclosed in the notes to the financial statements. The City of
Sebastian, Florida's component unit, the Police Officer's Pension Plan, was established under Section
58-46 through 58-54 Code of Ordinances in October 1989.
Financial Condition and Management
Section 10.554(1)(i)5.a., Rules of the Auditor General, requires that we report the results of our
determination as to whether or not the City of Sebastian, Florida has met one or more of the conditions
described in Section 218.503(1), Florida Statutes, and identification of the specified condition(s) met.
In connection with our audit, we determined that the City of Sebastian, Florida did not meet any of the
conditions described in Section 218.5030 ). Florida Statutes.
Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial
condition assessment procedures. It is management's responsibility to monitor the City of Sebastian,
Florida's financial condition, and our financial condition assessment was based in part on
representations made by management and the review of financial information provided by same.
Section 10.554(1)(i)2., Rules of the Auditor
recommendations to improve financial management
such recommendations.
Special District Component Units
General, requires that we communicate any
. In connection with our audit, we did not have any
Section 10.554(1)(i)5.d. Rules of the Auditor General, requires, if appropriate, that we communicate
the failure of a special district that is a component unit of a county, municipality, or special district, to
provide the financial information necessary for proper reporting of the component unit, within the
audited financial statements of the county, municipality, or special district in accordance with Section
218.39(3)(b), Florida Statutes. In connection with our audit, we did not note any special district
component units that failed to provide the necessary information for proper reporting in accordance
with Section 218.39(3)(b), Florida Statutes.
Additional Matters
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with
provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have
occurred, that have an effect on the financial statements that is less than material but warrants the
attention of those charged with governance. In connection with our audit, we did not note any such
findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and Florida House of Representatives, the Florida Auditor
General, Federal and other granting agencies, the City Council, and applicable management, and is not
intended to be and should not be used by anyone other than these specified parties.
151 4169 WX"t- L LC
PIA P.,ehmann
INDEPENDENT ACCOUNTANTS' REPORT
March 8, 2019
Honorable Mayor and
Members of City Council
City of Sebastian
Sebastian, Florida
Rebmann Robson
5070 North Highway A1A,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have examined the compliance of the City of Sebastian, Florida (the "City") with Sections 218.415,
28.35 and 28.36, Florida Statutes, during the year ended September 30, 2018. Management is
responsible for compliance with those requirements. Our responsibility is to express an opinion on the
Citv's compliance based on our examination.
Independent Accountants' Responsibility
Our responsibility is to express an opinion on the City's compliance with those requirements based on
our examination. Our examination was conducted in accordance with attestation standards established
by the American Institute of Certified Public Accountants. Those standards require that we plan and
perform the examination to obtain reasonable assurance about whether the City is in compliance with
specified requirements established by Florida Statute and performing such procedures as we
considered necessary in the circumstances.
We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis
for our opinion. Our examination does not provide a legal determination on the City's compliance with
specified requirements.
Opinion
In our opinion, the City complied, in all material respects, with the aforementioned requirements for
the year ended September 30, 2018.
Purpose of this Report
This report is intended solely for the information of management, the City, the City Council and the
Florida Auditor General and is not intended to be and should not be used by anyone other than these
specified parties.
Rehmann is an independent member of Nexia International.
41C9 rL414- LLC
A member of
Nexia
international
CPAs & Consultants Wealth Advisors Corporate Investigators
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