HomeMy WebLinkAbout2018 - 2019CITY OF SEBASTIAN, FLORIDA
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HOME OF PELICAN ISLAND
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended September 30, 2019
CITY COUNCIL
Ed Dodd Charles Mauti
Mayor
Damien Gilliams
Council Member
Vice -Mayor
Jim Hill Pamela Parris
Council Member Council Member
Prepared by: Administrative Services Department
CITY OF SEBASTIAN, FLORIDA
Table of Contents
Pa e
INTRODUCTORY SECTION
City Officials 2
Letter of Transmittal 3
Organizational Chart 9
GFOA Certificate of Achievement 10
FINANCIAL SECTION 11
Independent Auditors' Report
13
Management's Discussion and Analysis
17
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Position
31
Statement of Activities
32
Fund Financial Statements:
Balance Sheet - Governmental Funds
34
Reconciliation of Fund Balances for Governmental Funds to Net Position
of Governmental Activities
37
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds
38
Reconciliation of Net Changes in Fund Balances of Governmental
Funds to Change in Net Position of Governmental Activities
41
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual:
General Fund
42
Discretionary Sales Tax Special Revenue Fund
43
Riverfront Redevelopment Special Revenue Fund
44
Stormwater Utility Special Revenue Fund
45
Statement of Net Position - Proprietary Funds
46
Statement of Revenues, Expenses and Changes in Fund
Net Position - Proprietary Funds
47
Statement of Cash Flows - Proprietary Funds
48
Statement of Fiduciary Net Position
50
Statement of Changes in Fiduciary Net Position
51
Notes to Financial Statements
53
CITY OF SEBASTIAN, FLORIDA
Table of Contents
Pa e
Required Supplementary Information:
Single -employer Pension Trust Fund:
Schedule of Changes in Net Pension Liability and Related Ratios 86
Schedule of Investment Returns 88
Schedule of Contributions 88
Coastal Florida Public Employees Association Pension Plan:
Schedule of Employer Contributions 91
Combining and Individual Fund Financial Statements and Schedules:
Nonmajor Governmental Funds:
Combining Balance Sheet
94
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances
96
Schedule of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual:
Local Option Gas Tax Special Revenue Fund
98
Parking In -Lieu -Of Special Revenue Fund
99
Recreation Impact Fee Special Revenue Fund
100
Law Enforcement Forfeiture Special Revenue Fund
101
Stormwater Utility Revenue Bonds Debt Service Fund
102
Agency Fund:
Combining Statement of Changes in Assets and Liabilities 104
Other:
Capital Assets used in the Operations of Governmental Funds:
Comparative Schedule by Source 106
Schedule by Function and Activity 107
Schedule of Changes by Function and Activity 108
CITY OF SEBASTIAN, FLORIDA
Table of Contents
Page
STATISTICAL SECTION (UNAUDITED)
Statistical Section Table of Contents
111
Financial Trends Information
Net Position by Component
112
Changes in Net Position
114
Fund Balances, Governmental Funds
118
Changes in Fund Balances, Governmental Funds
120
Program Revenues by Function/Program
122
Revenue Capacity Information
Tax Revenues by Source
124
Direct and Overlapping Property Tax Rates
125
Actual and Estimated Value of Taxable Property
126
Principal Property Taxpayers
128
Property Tax Levies and Collections
129
Debt Capacity Information
Ratios of Outstanding Debt by Type
131
Legal Debt Margin Information
132
Pledged Revenue Coverage
134
Demographic and Economic Information
Demographic and Economic Statistics
136
Principal Employers
139
Operating Information
Full -Time Equivalent City Government Employees by Function/Program
140
Operating Indicators by Function/Program
142
Capital Asset Statistics by Function/Program
144
Internal Control and Compliance
Independent Auditors' Management Letter 149
Independent Accountants' Report 151
INTRODUCTORY SECTION
CITY OF SEBASTIAN, FLORIDA
CITY OFFICIALS
For the Year Ended September 30, 2019
Paul Carlisle
City Manager
James Stokes
City Attorney
DEPARTMENT HEADS
Michelle Morris
Police Chief
Lisa Frazier
Community Development Director
Wayne Eseltine
Building Official
Scott Baker
Public Facilities Director
Jeanette Williams
City Clerk
Kenneth W. Killgore
Administrative Services Director1C=0
Kenneth Griffin
City Engineer
Greg Gardner
Golf Course Director
Brian Benton
Leisure Services Director
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HOME OF PELICAN ISLAND
March 4, 2020
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, 2019. 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, 2019.
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. The City's independent Certified Public
Accountants, Rehmann Robson, has issued an unqualified ("clean") opinion on the City of
Sebastian's financial statements for the year ended September 30, 2019. The independent
auditors' report is located on page 13, 14 and 15. Management's discussion and analysis
(MD&A) immediately follows the independent auditors' report and provides a narrative
introduction, overview, and analysis of the basic financial statements. The MD&A
complements this letter of transmittal and should be read in conjunction with it.
Profile of the Government
The City of Sebastian, Florida is located in Indian River County approximately midway
through the east coast of the Florida Peninsula (between Melbourne and Vero Beach) in an
area known as the Treasure Coast. It is recognized as the Home of Pelican Island, the first
designated wildlife refuge in the United States, a Millennium City, and a Tree City USA. It
was first incorporated as the Town of Sebastian in 1924. In the late 1950s General
Development Corporation purchased the land from the Mackle family of Miami and began the
development of a planned community that is now the City of Sebastian. The City has a
population of 25,168 residents.
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.
v
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 and fire 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 and Sebastian Police Officer's Pension Trust Fund.
The Council is required to adopt a final budget no later than the close of the fiscal year. This
annual budget serves as the foundation for the City's financial planning and control. The
budget is prepared by fund, function (e.g., transportation), and department (e.g., public
works). Shifts in appropriations within department totals and capital project 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 Economv
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 2019, the Florida Research & Economic Database reported an
improved unemployment rate of 3.2%, which corresponds with improvements being enjoyed
at the state and national levels. However, the overall unemployment rate for the area has
historically not been as good as that of the State of Florida.
The largest major industry sector was Health Care and Social Assistance with 25.26% 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 and the median household income for 2018
was $52,243, as reported by the U.S. Census Bureau.
Sebastian offers all of the Florida amenities a business needs to consider. Close connection
to metropolitan areas without the south Florida hustle and bustle, quality housing for
affordable prices, some of the best schools in the State, quality medical services and leisure
activities that are second to none. Transportation is easy in Sebastian, offering easy access
to major freight transportation routes. Interstate Highway 1-95, the major north -south trucking
route on the Florida east coast, is just six miles west. The Florida East Coast Railroad (FEC)
runs directly through Sebastian. FEC offers freight service from Miami and Ft. Lauderdale
ports of entry, as well as direct connections with other major rail lines at Jacksonville.
Lono-term Financial Plannina
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
vi
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 3.1514 for fiscal year 2019. However, the City
had an increase in ad valorem values due to improvements and additions to the tax rolls.
Construction activity resulted in a total of 170 permits being issued for new construction in
fiscal year 2019 with a cost of $42.4 million compared to a total of 167 permits being issued
for new construction in fiscal year 2018 with a cost of $39.8 million. In reviewing these
numbers, new commercial dropped from 2 permits costing $.8 million in 2018 to 1 permit
costing $.5 million in 2019 and new residential increased from 165 costing $38.9 million in
2018 to 169 costing $41.8 in 2019. The increase in residential construction can be primarily
attributed to the improved outlook for the housing market.
General Fund unassigned fund balance has been fully restored to an amount above the $5
million minimum target after being spent down due to Hurricanes Matthew and Irma. By year
end, the unassigned fund balance was 49% of the general fund expenditures and transfers
out budget. The City has been steadfast and refused to spend down these balances because
the City understands reliance on accumulated fund balances to fund operating expenditures
is not a prudent fiscal strategy and because having sufficient balances are essential to
handle emergencies such as hurricanes. To this end, the budget for fiscal year 2020 was
balanced without a reduction of fund balances.
Maior Initiatives
Administration
The City continues to pursue the remaining unpaid reimbursements from FEMA and the
State related to Hurricane Matthew that occurred in October 2016. The City managed to
document about $1,582,000 of eligible expenditures and has recovered all but about
$144,000 from that event. During the 2019 fiscal year, the City received all the $533,000 in
qualified reimbursements initially documented from Hurricane Irma that occurred in
September 2017. A subsequent allocation of another $14,700 in FEMA's share of the eligible
costs was received shortly after year end. In October of 2019, about $38,000 of expenditures
were then experienced as a result of Hurricane Dorian and the reimbursement process for
that event has been initiated. Expenditures necessary to handle these storm events are paid
from General Fund unassigned fund balance, so it is important to recover these outlays as
soon as possible.
During 2019, the development of a business plan for the City was initiated. The business
plan is expected to identify key task throughout the organization that will continue to be
measured and reported as to progress being made on those items. It is anticipated that
regular reporting on these activities will serve to publicize accomplishments and better inform
the public. Also during the year, efforts continued to make use of advanced technology by
upgrading computer servers, improving the network and acquiring better audio visual
equipment.
Stormwater — The City initiated a study to examine alternatives to controlling vegetative
overgrowth in the stormwater systems drainage systems. Efforts continued to account for all
Stormwater operating expenditures within the Stormwater Revenue fund in order to improve
transparency about what stormwater fees are spent on. Preliminary approval was received
for a FEMA grant to address drainage improvements that are needed in the Stonecrop area
of the City.
vii
Traffic & Transportation — The City continues working on transportation improvements. An
inventory of roadway conditions was performed and a six year plan for funding road
resurfacing and road reconstruction work. Based on the plan, necessary street repaving work
is funded using local option gas taxes and required major road reconstruction is funded by
discretionary sales taxes. In addition, discretionary sales taxes are 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. 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. 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. Reimbursements from grants were received
during the year for completing construction of additional taxiways and for the construction of
Shade Hangars. Planned improvements next year include constructing Hanger "D" with grant
funds matched by funds from discretionary sales taxes.
Public Safetv — The Building Department continued measures to effectively operate as the
City Fire Marshal so we can insure more timely response and review of development plans.
The Police Department continues to participate in the accreditation program offered by the
commission for Florida Law Enforcement Accreditation. The designation encourages the
Police Department to establish goals and objectives with provisions for periodic updating;
constant reevaluation of whether departmental resources are being employed in accordance
with agency goals, objectives and mission; constant reevaluation of departmental policies
and procedures as documented in the department's written directive system; to
accommodate correction of internal deficiencies and inefficiencies before they become public
problems; and the opportunity to reorganize without the appearance of personal attacks.
Standards and performance measurements resulting from the accreditation process will
continue to guide both Sebastian Police Department and city administration in alleviating
potentially adverse conditions.
Culture/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. 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. The City also used recreation impact fees to
construct Pickle Ball Courts and to upgrade the scoreboards at the ballfields. Future plans
include a program to upgrade the identification signage at all the parks and to focus on one
major park each year to address needed major facility improvements and replacements,
including "all-inclusive" features to accommodate those with special needs.
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 last year's comprehensive annual financial report for the fiscal year ended
September 30, 2018. 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 accounting 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 E. Carlisle
City Manager
ar-�
Kenneth W. Killgore
Administrative Services Director/CFO
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CITY
CLERK
_ I
ADMINISTRATIVE POLICE BUILDING COMMUNITY CITY PUBLIC LEISURE GOLF
SERVICES DEVELOPMENT ENGINEER FACILITIES SERVICES COURSE
FINANCE & G PLANNINAND ROADS PARK
ACCOUNTING ADMINISTRATION ZONING FACILITIES FACILITIES
MAINTENANCE
COMMUNITY
HUMAN OPERATIONS REDEVELOPMENT STORMWATER FLEET RECREATION
RESOURCES AGENCY MANAGEMENT PROGRAMS
MANAGEMENT
INFORMATION ~� INVESTIGATIONS CEMETERY
SYSTEMS
.�� PROJECT No DISPATCH AIRPORT
ACCOUNTING
CONTRACTS& CODE
PROCUREMEN ENFORCEMENT
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CITY OF SEBASTIAN, FLORIDA
Organizational Chart
Fiscal Year 2018/2019
CITIZENS OF
SEBASTIAN
CITY COUNCIL
CITY
MANAGER
BOARDS &
COMMISSIONS
CITY
ATTORNEY
9
CITY OF SEBASTIAN, FLORIDA
GFOA Certificate of Achievement
G�
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, 2018
04&� P 7t�
Executive Director/CEO
10
FINANCIAL SECTION
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12
►'- Rehmann
INDEPENDENT AUDITORS' REPORT
March 6, 2020
Honorable Mayor and
Members of City Council
City of Sebastian, Florida
Report on the Financial Statements
Rebmann Robson
5070 Highway AlA,
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, 2019, 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 at
Nexia
Internatlonal
CPAs & Consultants Wealth Advisors Corporate Investigators
13
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, 2019, 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.
14
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 XX,
2020, 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 rL.rn. LLC
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MANAGEMENT'S DISCUSSION AND ANALYSIS
17
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 2019 by $64,454,494 (net position). Of this amount, $1,401,502 (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 $2,474,895 and from business -type activities
increased by $2,145,556. Net position was increased in governmental activities, primarily as a result of charges for services
in the Stormwater Utility Fund being increased so they can be applied to future capital outlays and from public assistance
payments received from FEMA and the State in connection with Hurricane Irma. 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 $15,633,420, an increase of $3,190,755 from the prior
year. Almost 38% of this amount, $5,982,710 is unassigned and available for spending, a $938,285 increase from fiscal year
2018, due to a major increase in stormwater utility fees and from FEMA and State payments related to Hurricane Irma.
The Golf Course Fund reported a small improvement in the unrestricted deficit in net position attributed to an increase in
operating revenues. The Airport Fund reported an increase in the deficit in unrestricted net position resulting from the
large investments made in capital assets. The Building Fund reported an increase in unrestricted net position, as a result of
continued good 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).
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.
18
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
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 Stormwater Utility Fund, 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.
WA
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 $64,427,700 at the
close of the most recent fiscal year.
Governmental Activities
2019 2018
Current and other assets
$ 16,404,210
$ 13,162,247
Capital assets, net
39,064,967
40,153,980
Total assets
55,469,177
53,316,227
Deferred outflows of
resources
1,123,453
698,053
Long-term debt outstanding
3,512,262
4,080,752
Other liabilities
4,876,451
4,065,537
Total liabilities
8,388,713
8,146,289
Deferred inflows of
resources
90,346
229,315
Net position
Net investment in
capital assets
37,080,967
37,568,980
Restricted
8,976,174
6,419,900
Unrestricted
2,056,430
1,649,796
Total net position
$ 48,113,571
$ 45,638,676
Net Position
Business -type Activities Total
2019 2018 2019 2018
$ (86,152) $ (387,889) $ 16,318,058 $ 12,774,358
17,152,022 15,178,956 56,216,989 55,332,936
17,065,870 14,791,067 72,535,047 68,107,294
- - 1,123,453 698,053
376,018 434,845 3,888,280 4,515,597
348,929 160,855 5,225,380 4,226,392
724,947 595,700 9,113,660 8,741,989
- - 90,346 229,315
16,995,851 14,972,789 54,076,818 52,541,769
8,976,174 6,419,900
(654,928) (777,422) 1,401,502 872,374
$ 16,340,923 $ 14,195,367 $ 64,454,494 $ 59,834,043
A substantial portion of the City's net position, $54,076,818 (83.9 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 $8,976,174 (13.9 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 $1,401,502 (2.2
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, although not as great as prior years. This was primarily due to the income recorded by the Building Fund.
20
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
Change in Net Position
Governmental Activities
Business -type
Activities
Total
2019
2018
2019
2018
2019
2018
Revenues
Program revenues:
Charges for services
$ 2,896,075 $
1,657,296
$ 2,801,449 $
2,752,000 $
5,697,524 $
4,409,296
Operating grants
803,092
1,776,070
46,771
115,907
849,863
1,891,977
Capital grants
251,088
181,050
2,670,116
2,120,953
2,921,204
2,302,003
General revenues:
Property taxes
4,325,759
4,153,194
-
4,325,759
4,153,194
Other taxes
2,882,460
2,808,172
2,882,460
2,808,172
Intergovernmental
7,109,496
6,887,664
7,109,496
6,887,664
Other
2,000,371
1,845,378
8,499
8,234
2,008,870
1,853,612
Total revenues
20,268,341
19,308,824
5,526,835
4,997,094
25,795,176
24,305,918
Expenses
General government
3,970,541
3,926,479
-
3,970,541
3,926,479
Public safety
6,613,707
6,227,299
6,613,707
6,227,299
Physical environment
3,106,764
3,431,933
3,106,764
3,431,933
Transportation
2,022,117
1,949,882
2,022,117
1,949,882
Economic environment
402,986
238,597
402,986
238,597
Cultural and recreation
1,434,296
1,279,635
1,434,296
1,279,635
Interest and fiscal
charges
38,539
56,523
38,539
56,523
Golf course
-
-
1,533,749
1,555,853
1,533,749
1,555,853
Airport
1,336,180
1,328,258
1,336,180
1,328,258
Building
715,846
664,066
715,846
664,066
Total expenses
17,588,950
17,110,348
3,585,775
3,548,177
21,174,725
20,658,525
Change in net position,
before transfers
2,679,391
2,198,476
1,941,060
1,448,917
4,620,451
3,647,393
Transfers
(204,496)
(370,457)
204,496
370,457
Change in net position
2,474,895
1,828,019
2,145,556
1,819,374
4,620,451
3,647,393
Net position, beginning
of year
45,638,676
43,810,657
14,195,367
12,375,993
59,834,043
56,186,650
Net position, end of year
$ 48,113,571 $
45,638,676
$ 16,340,923 $
14,195,367 $
64,454,494 $
59,834,043
The City's net position increased by $4,593,657 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 the increase in Stormwater
Utilitiy fees
and reimbursements related
to Hurricane Irma.
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.
21
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
Governmental Activities. Governmental activities increased the City's net position by $2,474,895. Key elements of this
increase are as follows:
An increase in expenses of $478,602 due to public safety spending.
An increase in general revenues of $623,678, mostly from sales taxes and property taxes.
An increase in program revenues of $335,839 due to the increase in stormwater utility fees.
A change in transfers of ($165,961) 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
Intergovernmental
35%
■ Expenses
■ Program Revenues
0.--
Transportation
Economic
Cultural and Interest and
environment
recreation fiscal charges
Revenues by Source - Governmental Activities
Other_
Other taxes
21%
perating grants
4%
Capital grants
1%
Property taxes
22%
22
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
Business -type Activities. Business -type activities increased the City's net position by $2,145,556. The key elements of this
increase are as follows:
An increase in expenses of $37,598 primarily in contractual services, material and supplies.
An increase in program revenues of $529,476 from an increase in capital grants, building permits and golf course fees.
A change in transfers in of ($165,961) from less construction at the golf course being funded by other funds.
Expenses and Program Revenues - Business -type Activities
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
_AL
Golf course
Capital grants
48%
■ Expenses
■ Program Revenues
Airport
Revenues by Source - Business -type Activities
Operating grants and
other
Building
Charges for services
51%
23
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 $15,633,420,
an increase of $3,190,755 from the prior year. Of this amount, 38 percent ($5,982,710) 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 $5,988,440 while total fund balance amounted to $6,199,061. 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 49.4 percent of total General Fund expenditures, while total fund balance represents 51.1 percent of that
same amount.
The fund balance of the City's General Fund increased by $825,680 during the current fiscal year. Key factors in this change are
as follows:
Property tax revenues increased by $154,881.
Charges for services increased by $157,044.
Intergovernmental decreased by $774,360.
Public utility taxes increased by $74,288.
Franchise fees increased by $26,952.
All other revenues increased by $8,398.
Transfers in from other funds decreased by $680,713.
Transfers out to other funds decreased by $612,785.
Expenditures decreased by $380,170.
The General Fund originally budgeted for no changes in the fund balance. The actual increase in fund balance was $825,680.
Significant changes in budgetary variances are as follows:
Property tax revenues were slightly more than budgeted due to collections of delinquent accounts, with over 99% 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.
Investment earnings had a positive budgetary variance from unbudgeted receipts from Hurricane Matthew payments.
General Fund expenditures had an overall favorable budgetary variance of $471,521, which was just a 3.7% difference from
the amended budget total.
24
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
The Discretionary Sales Tax revenue special revenue fund has a total fund balance $5,584,628, an increase from the $3,554,598
total fund balance of the prior year. Funds are restricted for projects that are planned in future years. The larger balance is
almost entirely earmarked for the design and construction of a new public facilities compound expected to start construction in
the next fiscal year.
The Riverfront Redevelopment Fund ended the year with $374,104 in fund balance, as a result of expenditures on economic
development.
The Stormwater Utility Fund collected additional revenues from a rate increase, which resulted in a fund balance of $889,713.
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 $176,340, while the
unrestricted net position (deficit) amounted to ($1,838,094). Compared to the prior year in the same categories, net position
decreased from the prior year and the unrestricted net position (deficit) changed from ($1,859,752) to ($1,838,094). This is
mainly due to the decrease in transfers in to the fund recorded for the fiscal year.
The total net position of the airport fund at the end of the fiscal year amounted to $14,691,295, while the unrestricted net
position (deficit) amounted to ($606,523). Compared to the prior year in the same category, net position has increased by
$2,114,696 while the unrestricted net position (deficit) has changed from ($514,253) to ($606,523). The decrease in the
unrestricted net position (deficit) is mainly due to payments made to reduce advances made from another fund.
The total net position of the building fund at the end of the fiscal year amounted to $1,825,968. This is an increase of $171,953
from the prior year, which was primarily due to the continuation of healthy levels of operating income.
Other factors concerning the finances of these three funds have already been addressed in the discussion of the City's business -
type activities.
Budgetary Highlights
Over the course of the fiscal year, the City Council formally approved revisions to the City budget four times. These budget
adjustments fell into four major categories. The first includes amendments to allocate funds for extraordinary and unexpected
expenditures from Reserves or added revenues. 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:
25
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
Amendments
$50,000 to allocate grant revenue to the costs of the Coastal Resiliency Plan.
$30,500 to use Discrectionary Sales Tax reserves toward Yacht Club Pier improvements.
$19,910 to use Recreation Impact Fee Reserves for Barber Street Sports Complex restroom renovations.
$80,000 to reduce funding for the Working Waterfront due to a reduction in the approved grant.
$11,795 to use Airport reserves to cover replacement/upgrade of the credit card terminal used for fuel sales.
$8,000 to allocate grant revenue to the costs of replacing Airport Gate #3.
$2,250,000 to allocate grant revenue and Discretionary Sales Tax reserves to the construction of Hangar "D".
$55,500 to use General Fund reserves for the development of a business plan.
$6,810 to use DST Reserves toward the costs of the CavCorp Parking Lot Project.
$532,620 to allocate Hurricane Irma reimbursements to cover overages in General Fund accounts.
General Fund Equipment Et Facilities Renewal Et Replacement (REtR) Reserve Allocations
$24,696 to use REtR Reserve to replace roof at the Barber Street sports complex.
$20,457 to use REtR Reserve to repair roof and re -pipe Crab E. Bill's hot water lines.
$2,828 to use REtR Reserve to replace the little league scoreboard.
$4,705 to use R8tR Reserve to replace air conditioners at the Tennis Office and Old School House Museum.
$30,775 to use REtR Reserve to replace critical information technology equipment that was failing.
$3,384 to use R8tR Reserve to replace light lenses at Friendship Park.
$2,000 to use R8tR Reserve for repairs at Main Street Dock.
Project Budget Transfers
$12,500 adjustment from road division vehicles to fund Pavement Management Program.
$347 adjustment to close computer upgrades project and return funds to DST Reserves.
$3,495 adjustment to record trade-in value of old credit card terminal at the Airport.
$32,165 adjustment to reduce other Discretionary Sales Tax projects to cover shortage in the police vehicles project.
$3,000 adjustment to record clambake donation to help fund Riverview Park sidewalks.
$9,000 adjustment to record grant revenues and Airport matching funds to Tree Removal Project.
$21,565 adjustment to close repaving project in the Local Option Gas Tax fund.
$2,787 adjustment to close Barber Street restroom project with added funds from Leisure Services budget.
$1,470 adjustment to close the radar signs project
$7,512 adjustment to close the park improvements project
$366,241 adjustment to return unused Stormwater Capital Project to Stormwater Fund Reserves.
$282,034 adjustment to return unused Stonecrop Drainage Project to Stormwater Fund Reserves, which is
budgeted again in the next year.
$114,486 adjustment to return unused grant program funds to Community Redevelopment Agency Reserves, as they are
budgeted again next year.
Operating Budget Transfers
$4,000 adjustment within Police Department to cover the relocation of the boat lift.
$2,000 adjustments within Golf Course accounts to cover irrigation system repairs.
$2,600 adjustments within facilities maintenance division to add cleaning of softball field restrooms.
$28,850 adjustments within salary accounts for the Holiday bonuses.
$13,635 adjustment within leisure services accounts to purchase a vehicle for the new Director.
$2,620 adjustment within Golf Course accounts to repait the clubhouse roof overhang damaged by a vendor.
$1,150 adjustment within Salary accounts for the quarterly incentive awards.
$5,484 adjustment within Airport accounts to install gate #3 and purchase a security camera.
$9,000 adjustment to use revenue from Airport equipment sales toward additional grounds maintenance.
$78 adjustment to use additional code enforcement receipts to cover lien filing expenditures.
$2,750 adjustment within Salary accounts for the quarterly incentive awards.
$3,471 adjustment within Management Information Systems accounts to provide cyber security training.
26
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
During the fiscal year, total General Fund actual expenditures were $471,521 less than final amended budgetary estimates. The
overall variance on revenues and expenditures resulted in an increase of $825,680 to existing fund balances. This was primarily
due to the payments received on Hurricane Irma, which were somewhat offset by expenditures incurred on Hurricane Dorian.
Capital Asset and Debt Administration
Capital Assets. At the end of fiscal year 2019, the City had $56,216,989 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 $884,053, or 1.6%, over last year. The following table
illustrates the changes in capital assets. More detailed information regarding capital assets can be found within Note 7 on
Capital Assets in the Financial Statements section of the CAFR.
Capital Assets (Net of Depreciation)
Governmental Activities
Business -type Activities
Total
2019
2018
2019
2018
2019
2018
Land
$ 9,123,041
$ 9,123,041
$ 9,060
$ 9,060 $
9,132,101 $
97132,101
Buildings
7,762,948
7,992,590
7,6387387
7,272,414
15,4017335
15,265,004
Improvements
2,510,563
2,739,476
1,289,371
1,410,023
3,799,934
4,149,499
Equipment
2,472,410
2,223,479
480,781
657,034
2,953,191
2,880,513
Infrastructure
16,9907037
17,886,635
5,253,616
5,774,197
22,243,653
23,660,832
Construction in progress
205,968
188,759
2,480,807
56,228
2,686,775
244,987
Total capital assets, net
$ 39,064,967
$ 40,153,980
$ 17,152,022
$ 15,178,956 $
56,216,989 $
55,332,936
Governmental activities had the following major changes during the fiscal year:
A decrease in Buildings mainly due to depreciation.
A decrease in Improvements mainly due depreciation.
An increase in Equipment due to replacement of old units.
A decrease in Infrastructure mainly due to depreciation in excess of additions.
Business -type activities had the following major changes during the fiscal year:
An increase in Buildings due to the completion of the shade hangars.
A decrease in Equipment due to depreciation.
A decrease in Infrastructure mainly due to depreciation.
An increase in Construction in Progress due to the taxiway improvements still underway at year end.
Long-term Debt. At the end of the current fiscal year, the City had total long-term debt outstanding of $3,888,280. Of this
amount, $1,984,000 consist of notes pledging specific revenues to the repayment of the debt. More detailed information
regarding these activities and funds can be found within Note 8 on Long-term Debt in the Financial Statements section of the
CAFR.
27
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
Total Long-term Debt
Governmental Activities
Business -type Activities
Total
2019
2018
2019 2018
2019
2018
Notes payable
$ 1,984,000
$ 2,585,000
$ - $ -
$ 1,984,000 $
2,585,000
Compensated absences
1,437,062
1,404,552
219,847 228,678
1,656,909
1,633,230
Pollution remediation
91,200
91,200
- -
91,200
91,200
Capital lease
-
-
156,171 206,167
156,171
206,167
Total
$ 3,512,262
$ 4,080,752
$ 376,018 $ 434,845
$ 3,888,280 $
4,515,597
The City's total debt decreased by $627,317 (13.89%) 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 AAA by rating 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 2020 budget, tax rates, and
fees that will be charged for the business -type activities. One of those factors is the economy. Sebastian's local economy
consists largely of retail and service industries. Less than one percent is devoted to industrial activities. Construction of new
homes is the largest single business in the area. Some of the largest retail stores include Publix Supermarket and Wal-Mart
Stores, Inc.® The Indian River County unemployment rate in September 2019 was 3.2 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 9.03% overall increase in property values for 2020. The millage of 2.9399 was levied for taxes to be
recorded in fiscal year 2020 that will essentially provide the equivalent revenue from property taxes as received in fiscal year
2019.
The Golf Course reported more revenues from fees in 2019, primarily due to more memberships resulting from the excellent
condition of the facility. 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 continue to draw
more customers and generate higher revenues that will 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 positive changes 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.
28
BASIC FINANCIAL STATEMENTS
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30
CITY OF SEBASTIAN, FLORIDA
Statement of Net Position
September 30, 2019
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
$ 9,208,688 $ 848,959 $ 10,057,647
602,706
-
602,706
3,196,854
223,713
3,420,567
858,189
-
858,189
1,256,295
31,788
1,288,083
1,211,914
(1,211,914)
-
23,238
5,809
29,047
46,326
14,491
60,817
-
1,002
1,002
9,329,009
2,489,867
11,818,876
29,735,958
14,662,155
44,398,113
55,469,177
17,065,870
72,535,047
1,123,453
-
1,123,453
710,713
275,383
986,096
14,643
-
14,643
60,077
73,546
133,623
747,485
60,397
807,882
2,764,777
315,621
3,080,398
4,091,018
-
4,091,018
8,388,713
724,947
9,113,660
90,346
-
90,346
37,080,967 16,995,851 54,076,818
163,919
163,919
1,036,571
1,036,571
6,123,739
6,123,739
374,104
374,104
1,136,885
1,136,885
140,956
140,956
2,056,430
(654,928) 1,401,502
$ 48,113,571 $ 16,340,923 $ 64,454,494
The accompanying notes are an integral part of these basic financial statements.
31
CITY OF SEBASTIAN, FLORIDA
Statement of Activities
For the Year Ended September 30, 2019
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
$ 3,970,541 $
6,613,707
3,106,764
2,022,117
402,986
1,434,296
38,539
17, 588, 950
Program Revenues
Operating Capital Net
Charges Grants and Grants and (Expense)
for Services Contributions Contributions Revenue
532,721 $
147,121
2,161,464
54,769
2,896,075
1,533,749 1,400,939
1,336,180 536,442
715,846 864,068
3,585,775 2,801,449
$ 21,174,725 $ 5,697,524 $
564,257 $ - $ (2,873,563)
225,540 71,538 (6,169,508)
- - (945,300)
13,295 (2,008,822)
- - (402,986)
179,550 (1,199,977)
- (38,539)
803,092 251,088 (13,638,695)
321 - (132,489)
46,450 2,670,116 1,916,828
- - 148,222
46,771 2,670,116 1,932,561
849,863 $ 2,921,204 $ (11,706,134)
continued...
32
CITY OF SEBASTIAN, FLORIDA
Statement of Activities
For the Year Ended September 30, 2019
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
$ (13,638,695) $ 1,932,561 $ (11,706,134)
4,325,759
4,325,759
2,882,460
2,882,460
1,343,744
1,343,744
7,109,496
-
7,109,496
378,657
8,499
387,156
277,970
-
277,970
(204,496)
204,496
-
16,113,590
212,995
16,326,585
2,474,895
2,145,556
4,620,451
45,638,676 14,195,367 59,834,043
$ 48,113,571 $ 16,340,923 $ 64,454,494
concluded.
The accompanying notes are an integral part of these basic financial statements.
33
CITY OF SEBASTIAN, FLORIDA
Balance Sheet
Governmental Funds
September 30, 2019
Discretionary
Riverfront
Stormwater
General
Sales Tax
Redevelopment
Utility
Assets
Cash and cash equivalents
$
3,753,045
$
4,317,970
$
139,233
$
305,481
Investments
1,617,598
393,696
254,483
565,389
Accounts receivable
308,536
-
-
-
Due from other funds
650,000
-
-
Due from other governments
418,409
341,023
42,097
Inventories
46,326
-
-
Prepaid items
23,238
-
Advance to other funds
25,000
536,914
-
-
Total assets
$
6,842,152
$
5,589,603
$
393,716
$
912,967
Liabilities
Accounts payable and accrued liabilities
$
440,824
$
4,975
$
19,612
$
23,254
Due to other governments
142,190
-
-
-
Unearned revenue
60,077
-
-
-
Total liabilities
643,091
4,975
19,612
23,254
Fund balances
Nonspendable
94,564
-
-
-
Restricted
103,900
5,584,628
374,104
889,713
Committed
-
-
-
-
Assigned
12,157
Unassigned (deficit)
5,988,440
-
-
-
Total fund balances
6,199,061
5,584,628
374,104
889,713
Total liabilities and fund balances
$
6,842,152
$
5,589,603
$
393,716
$
912,967
The accompanying notes are an integral part of these basic financial statements.
34
Nonmajor
Total
Governmental
Governmental
Funds
Funds
$ 1,295,665
$ 9,811,394
1,223,877
4,055,043
11,780
320,316
-
650,000
134,450
935,979
-
46,326
23,238
561,914
$ 2,665,772 $ 16,404,210
$ 79,858 $ 568,523
- 142,190
60,077
79,858 770,790
1,036,571
1,131,135
1,001,901
7,954,246
553,172
553,172
-
12,157
(5,730)
5,982,710
2,585,914 15,633,420
$ 2,665,772 $ 16,404,210
35
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36
CITY OF SEBASTIAN, FLORIDA
Reconciliation
Fund Balances for Governmental Funds
to Net Position of Governmental Activities
September 30, 2019
Fund balances - total governmental funds $ 15,633,420
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 9,329,009
Capital assets being depreciated, net 29,735,958
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 (1,984,000)
Compensated absences (1,437,062)
Pollution remediation liability (91,200)
Accrued interest on long-term debt (14,643)
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 (4,091,018)
Deferred outflows related to the net pension liability 1,123,453
Deferred inflows related to the net pension liability (90,346)
Net position of governmental activities $ 48,113,571
The accompanying notes are an integral part of these basic financial statements.
37
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2019
Discretionary
Riverfront
Stormwater
General
Sales Tax
Redevelopment
Utility
Revenues
Taxes:
Property
$ 3,941,543
$
$ 384,216
$
Public utility
2,882,460
-
Franchise fees
1,343,744
Licenses and permits
146,812
Intergovernmental
3,613,868
3,524,825
Impact fees
-
-
Chargesforservices
548,099
2,038,668
Fines
50,996
-
-
-
Investment earnings
155,213
115,750
14,101
37,764
Otherrevenues
237,470
-
39,000
-
Contributions and donations
28,996
-
-
-
Total revenues
12,949,201
3,640,575
437,317
2,076,432
Expenditures
Current:
General government
3,475,174
-
2,928
-
Public safety
6,030,609
-
-
Physical environment
170,036
1,403,424
Transportation
1,062,207
-
-
-
Economic environment
-
9,675
393,311
Culture and recreation
1,004,381
-
-
Debt service:
Principal
-
Interest and fiscal charges
-
Capital outlay
381,798
-
-
-
Total expenditures
12,124,205
9,675
396,239
1,403,424
Revenues over(under)expenditures
824,996
3,630,900
41,078
673,008
Other financing sources (uses)
Transfers in
23,928
-
20,457
-
Transfers out
(23,244)
(1,600,870)
(111,245)
(133,759)
Total other financing sources (uses)
684
(1,600,870)
(90,788)
(133,759)
Net changes in fund balances
825,680
2,030,030
(49,710)
539,249
Fund balances, beginning of year
5,373,381
3,554,598
423,814
350,464
Fund balances, end of year
$ 6,199,061
$ 5,584,628
$ 374,104
$ 889,713
The accompanying notes are an integral part of these basic financial statements.
38
Nonmajor Total
Governmental Governmental
Funds Funds
$
$ 4,325,759
2,882,460
1,343,744
146,812
857,637
7,996,330
129,550
129,550
111,350
2,698,117
150
51,146
55,829
378,657
1,500
277,970
8,800
37,796
1,164,816 20,268,341
58,052
3,536,154
5,066
6,035,675
298,393
1,871,853
80,205
1,142,412
-
402,986
22,990
1,027,371
601,000 601,000
45,846 45,846
1,827,995 2,209,793
2,939,547 16,873,090
(1,774,731) 3,395,251
2,407,043
2,451,428
(786,806)
(2,655,924)
1,620,237
(204,496)
(154,494)
3,190,755
2,740,408
12,442,665
$ 2,585,914
$ 15,633,420
cW
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40
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, 2019
Net change in fund balances - total governmental funds $ 3,190,755
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 2,209,793
Depreciation expense (3,228,433)
Loss on disposal of capital assets (70,373)
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 601,000
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 accrued interest payable on long-term debt 7,307
Change in the accrual for compensated absences (32,510)
Change in the net pension liability and related deferred amounts (202,644)
Change in net position of governmental activities $ 2,474,895
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 - General Fund
For the Year Ended September 30, 2019
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Taxes:
Property
$ 3,816,814
$ 3,816,814
$ 3,941,543
$ 124,729
Public utility
2,935,950
2,935,950
2,882,460
(53,490)
Franchise fees
1,394,340
1,394,340
1,343,744
(50,596)
Licenses and permits
143,100
143,100
146,812
3,712
Intergovernmental
3,651,250
3,651,250
3,613,868
(37,382)
Charges for services
549,902
549,902
548,099
(1,803)
Fines
50,578
50,578
50,996
418
Investment earnings
80,650
80,650
155,213
74,563
Contributions and donations
48,414
48,414
28,996
(19,418)
Otherrevenues
207,700
207,700
237,470
29,770
Total revenues
12,878,698
12,878,698
12,949,201
70,503
Expenditures
Current:
General government
3,632,313
3,632,313
3,475,174
(157,139)
Public safety
6,148,527
6,148,527
6,030,609
(117,918)
Physical environment
178,475
178,475
170,036
(8,439)
Transportation
1,155,037
1,155,037
1,062,207
(92,830)
Culture and recreation
1,109,181
1,109,181
1,004,381
(104,800)
Capital outlay
372,193
372,193
381,798
9,605
Total expenditures
12,595,726
12,595,726
12,124,205
(471,521)
Revenues over(under)expenditures
282,972
282,972
824,996
542,024
Other financing sources (uses)
Transfers in
187,513
187,513
23,928
(163,585)
Transfers out
(470,485)
(470,485)
(23,244)
447,241
Total other financing sources (uses)
(282,972)
(282,972)
684
283,656
Net changes in fund balance
-
-
825,680
825,680
Fund balance, beginning of year
5,373,381
5,373,381
5,373,381
-
Fund balance, end of year
$ 5,373,381
$ 5,373,381
$ 6,199,061
$ 825,680
The accompanying notes are an integral part of these basic financial statements.
42
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, 2019
Revenues
Intergovernmental
Investment earnings
Total revenues
Expenditures
Current:
Economic environment
Revenues over expenditures
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
$ 3,572,500
$ 3,572,500
$ 3,524,825
$ (47,675)
63,107
63,107
115,750
52,643
3,635,607
3,635,607
3,640,575
4,968
30,950
30,950
9,675
(21,275)
3,604,657
3,604,657
3,630,900
26,243
1,266,331
1,266,331
-
(1,266,331)
(4,870,988)
(4,870,988)
(1,600,870)
3,270,118
(3,604,657)
(3,604,657)
(1,600,870)
2,003,787
-
-
2,030,030
2,030,030
3,554,598
3,554,598
3,554,598
-
$ 3,554,598 $
3,554,598 $
5,584,628 $
2,030,030
The accompanying notes are an integral part of these basic financial statements.
43
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, 2019
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Taxes:
Property
$ 385,710
$ 385,710 $
384,216
$ (1,494)
Investment earnings
10,000
10,000
14,101
4,101
Otherrevenues
39,000
39,000
39,000
-
Total revenues
434,710
434,710
437,317
2,607
Expenditures
Current:
General government
1,990
1,990
2,928
938
Economic environment
471,402
471,402
393,311
(78,091)
Total expenditures
473,392
473,392
396,239
(77,153)
Revenues over (under) expenditures
(38,682)
(38,682)
41,078
79,760
Other financing sources (uses)
Transfers in
220,927
220,927
20,457
(200,470)
Transfers out
(116,245)
(116,245)
(111,245)
5,000
Total other financing sources (uses)
104,682
104,682
(90,788)
(195,470)
Net changes in fund balance
66,000
66,000
(49,710)
(115,710)
Fund balance, beginning of year
423,814
423,814
423,814
Fund balance, end of year
$ 489,814
$ 489,814 $
374,104
$ (115,710)
The accompanying notes are an integral part of these basic financial statements.
44
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Stormwater Utility Special Revenue Fund
For the Year Ended September 30, 2019
Revenues
Charges for services
Investment earnings
Total revenues
Expenditures
Current:
Physical environment
Salaries
Total expenditures
Revenues over expenditures
Other financing sources (uses)
Transfers in
Transfers out
Total other financing uses
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Actual Over
Original Final (Under) Final
Budget Budget Actual Budget
$ 1,995,000 $ 1,995,000 $ 2,038,668 $ 43,668
19,000 19,000 37,764 18,764
2,014,000 2,014,000 2,076,432 62,432
1,609,702
1,609,702
1,403,424
(206,278)
1,609,702
1,609,702
1,403,424
(206,278)
404,298
404,298
673,008
268,710
(270,539)
(270,539)
-
270,539
(133,759)
(133,759)
(133,759)
-
(404,298)
(404,298)
(133,759)
270,539
-
-
539,249
539,249
350,464
350,464
350,464
-
$ 350,464 $
350,464 $
889,713 $
539,249
45
CITY OF SEBASTIAN, FLORIDA
Statement of Net Position
Proprietary Funds
September 30, 2019
Business -type Activities - Enterprise Funds
Golf
Course
Airport
Building
Total
Assets
Current assets:
Cash and cash equivalents
$ 22,831
$ 300,794
$ 525,334 $
848,959
Investments
-
-
223,713
223,713
Accounts receivable
8,786
-
8,786
Due from other governments
-
23,002
23,002
Inventories
14,491
-
-
14,491
Deposits held in escrow
493
16
493
1,002
Prepaid items
5,028
45
736
5,809
Total current assets
42,843
332,643
750,276
1,125,762
Noncurrent assets:
Advance to other funds
-
-
1,205,294
1,205,294
Capital assets:
Land
-
9,060
-
9,060
Buildings
718,983
9,367,542
10,086,525
Improvements other than buildings
1,179,193
1,688,866
2,868,059
Machinery and equipment
418,908
1,036,253
117,037
1,572,198
Infrastructure
1,438,540
9,596,026
-
11,034,566
Construction in process
-
2,480,807
2,480,807
Less accumulated depreciation
(1,937,699)
(8,880,736)
(80,758)
(10,899,193)
Total noncurrent assets
1,817,925
15,297,818
1,241,573
18,357,316
Total assets
1,860,768
15,630,461
1,991,849
19,483,078
Liabilities
Current liabilities:
Accounts payable and accrued liabilities
14,578
222,504
24,752
261,834
Due to other funds
500,000
150,000
-
650,000
Due to other governments
6,023
1,774
5,752
13,549
Unearned revenues
63,830
1,911
7,805
73,546
Current portion of compensated absences
3,580
42
5,007
8,629
Current portion of leases payable
51,768
-
-
51,768
Total current liabilities
639,779
376,231
43,316
1,059,326
Noncurrent liabilities:
Compensated absences, net of current portion
87,632
1,021
122,565
211,218
Advance from other fund
1,205,294
561,914
-
1,767,208
Leases payable
104,403
-
104,403
Net other postemployment benefit obligation
-
-
-
-
Total noncurrent liabilities
1,397,329
562,935
122,565
2,082,829
Total liabilities
2,037,108
939,166
165,881
3,142,155
Net position
Net investment in capital assets
1,661,754
15,297,818
36,279
16,995,851
Unrestricted (deficit)
(1,838,094)
(606,523)
1,789,689
(654,928)
Total net position
$ (176,340)
$ 14,691,295
$ 1,825,968 $
16,340,923
The accompanying notes are an integral part of these basic financial statements.
46
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds
For the Year Ended September 30, 2019
Operating revenues
Charges for fees and rents:
Building permit fees
Golf course fees
Rents
Otherrevenues
Total operating revenues
Operating expenses
Salaries, wages and employee benefits
Contractual services, materials and supplies
Depreciation
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses)
Investment 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 Airport Building Total
1,364,555
27,463
8,921
1,400,939
367,734
940,405
219,216
1,527,355
(126,416)
443,628
92,814
536,442
122,348
318,839
873,173
1,314,360
(777,918)
864,068 $
864,068
593,832
100,861
21,153
715,846
148,222
864,068
1,364,555
471,091
101,735
2,801,449
1,083,914
1,360,105
1,113,542
3,557,561
(756,112)
(6,628)
15,127
8,499
(6,394)
(21,820)
-
(28,214)
321
46,450
-
46,771
(6,073)
18,002
15,127
27,056
(132,489)
(759,916)
163,349
(729,056)
2,670,116
-
2,670,116
204,496
8,604
213,100
(8,604)
-
-
(8,604)
(141,093)
2,114,696
171,953
2,145,556
(35,247)
12,576,599
1,654,015
14,195,367
(176,340)
$ 14,691,295 $
1,825,968
$ 16,340,923
The accompanying notes are an integral part of these basic financial statements.
47
CITY OF SEBASTIAN, FLORIDA
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2019
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
$ 1,399,615
$ 793,554
$ 864,268
$ 3,057,437
(940,435)
(101,626)
(96,339)
(1,138,400)
(364,055)
(153,204)
(574,886)
(1,092,145)
95,125
538,724
193,043
826,892
(6,394)
(21,406)
-
(27,800)
(44,404)
(60,000)
29,764
(74,640)
(29,764)
155,819
8,604
134,659
(80,562)
74,413
38,368
32,219
(49,996)
(49,996)
(10,892)
(3,094,805)
(3,105,697)
4,744
60,701
65,445
-
2,670,116
2,670,116
(56,144)
(363,988)
(420,132)
(104,524)
(104,524)
(6,627)
15,127
8,500
(6,627)
(89,397)
(96,024)
(41,581)
242,522
142,014
342,955
64,412
58,272
383,320
506,004
$ 22,831
$ 300,794 $
525,334
$ 848,959
continued...
48
CITY OF SEBASTIAN, FLORIDA
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2019
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
Deposits held in escrow
Prepaid items
Accounts payable and accrued liabilities
Due to other governments
Unearned revenues
Accrued compensated absences
Total adjustments
Net cash provided (used) by operating activities $
Business -type Activities - Enterprise Funds
Golf
Course Airport Building Total
(126,416) $ (777,918) $ 148,222 $ (756,112)
219,216
873,173
21,153
1,113,542
-
(8,401)
-
(8,401)
272,631
272,631
(1,671)
8,945
7,274
-
600
-
600
3,441
11,070
3,604
18,115
(1,800)
197,198
918
196,316
(424)
311
(55)
(168)
(900)
(7,429)
255
(8,074)
3,679
(31,456)
18,946
(8,831)
221,541
1,316,642
44,821
1,583,004
95,125 $
538,724 $
193,043
$ 826,892
concluded.
The accompanying notes are an integral part of these basic financial statements.
CLi
CITY OF SEBASTIAN, FLORIDA
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2019
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
Exchange -traded fund 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
$ -
$ 10,750
30,168
566,238
47,238
198,054
1,747,909
163,813
168,172
1,248,296
324,014
9,802,486
784,942
14,305
718,484
15,783,951
92,340
92,340
15,814,119 $ 103,090
- $ 103,090
$ 15,814,119
The accompanying notes are an integral part of these basic financial statements.
50
CITY OF SEBASTIAN, FLORIDA
Statement of Changes in Fiduciary Net Position
Fiduciary Fund - Pension Trust
For the Year Ended September 30, 2019
Police
Officers'
Pension
Additions
Contributions:
Employer
$ 595,045
Plan members
276,244
State
198,770
Total contributions
1,070,059
Investment income:
Net increase (decrease) in fair value of investments
(25,372)
Interest and dividends
398,542
Total investment income
373,170
Investment expenses
(111,282)
Net investment earnings
261,888
Total additions 1,331,947
Deductions
Benefits 617,282
Administrative expenses 67,866
Total deductions 685,148
Change in net position 646,799
Net position, beginning of year 15,167,320
Net position, end of year $ 15,814,119
The accompanying notes are an integral part of these basic financial statements.
51
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52
NOTES TO FINANCIAL STATEMENTS
53
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."
54
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.
55
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 Stormwater Utility 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.
56
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.
57
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, 2019, 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.
58
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.
W
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. The General Fund is the only
fund that reports a positive unassigned fund balance amount. In other governmental funds it is not
appropriate to report a positive unassigned fund balance amount. However, in governmental funds other
than the general fund, if expenditures incurred for specific purposes exceed the amounts that are
restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned
fund balance in that 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.
,o,
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 was
a minor violation in capital outlay. Additionally, there were minor violations in the Riverfront
Redevelopment fund, Local Option Gas Tax Fund and the Law Enforcement Forfeiture Fund.
61
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, 2019:
Statement of Net Position
Cash and cash equivalents $ 10,057,647
Restricted cash and cash equivalents 602,706
Investments 3,420,567
Permanently restricted investments 858,189
Statement of Fiduciary Net Position
Police Officers' Pension -
Investments 15,783,951
Agency funds:
Cash and cash equivalents 10,750
Investments 92,340
Total $ 30,826,150
Deposits and investments
Bank deposits -
Checking and savings accounts $ 10,668,673
Investments:
Investments, at fair value 4,371,096
Police officers' pension fund investments 15,783,951
Cash on hand 2,430
Total $ 30,826,150
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, 2019, the carrying amount of the City of
Sebastian's deposits with banks was $10,668,673 and the bank balance was $10,917,450. 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.
62
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, 2019, 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
$ 3,843,185 $
527,911
$ 4,371,096 $
Police officers' pension fund investments
- $ 3,843,185 $
527,911
$ 4,371,096 $
Money market $
566,238
$ $
United States treasuries
47,238
United States agencies
198,054
Collateralized mortgage
obligations
1,747,909
Unit Investment trusts
163,813
Municipal obligations
168,172
Domestic corporate bonds
1,248,296
Foreign corporate bonds
324,014
Domestic corporate equities
9,802,486
9,802,486
Foreign corporate equities
784,942
784,942
EFT equities
14,305
14,305
Real estate investment trust
718,484
718,484
$
15,783,951
$ 11,320,217 $
566,238 $
506
163,813
Investment Maturity (Years)
From 1-3 From 4-6 Over 7
6,030 41,208
102,642 95,412
485
68,120
605,000
161,447
730,557 $ 943,724 $
280,982
100,052
270,677
120,920
772,631
1,465,936
372,619
41,647
$ 2,016,822
63
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, 2019, 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, 2019, the City had $3,843,185 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, 2019 and amounts may be withdrawn
without penalty. Additionally, the City had $527,911 invested in the Florida Local Government
Investment Trust which had a rating by Standard and Poor's Rating Services as "AAA" on September 30,
2019.
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.
64
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.
65
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
As of September 30, 2019, the City had the following issuer concentration based on fair value and
investment ratings:
Issuer
Local government surplus
funds trust fund ("SBA")
Florida Local Government
Investment Trust
Money market
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
General Investments Pension Investments
Percentage of
Percentage of
SEEP/Moody
Amount
Portfolio
Amount
Portfolio
Ratings
$ 3,843,185
87.92%
$
0.00%
AAAm
527,911
12.08%
-
0.00%
AAAm
-
0.00%
566,238
3.59%
Not Rated
0.00%
47,238
0.30%
AAA
0.00%
198,054
1.25%
AAA/B-
0.00%
1,747,909
11.07%
AAA/A+
0.00%
163,813
1.04%
Not Rated
0.00%
168,172
1.07%
AAA/BBB
0.00%
1,248,296
7.91%
AAA/BBB-
0.00%
324,014
2.05%
AA/BBB-
0.00%
9,802,486
62.10%
Not Rated
0.00%
784,942
4.97%
Not Rated
0.00%
14,305
0.09%
Not Rated
-
0.00%
718,484
4.55%
Not Rated
$ 4,371,096
100.00%
$ 15,783,951
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.
66
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
The City has the following recurring fair value measurements as of September 30, 2019:
Level 1
Local government surplus funds
trust fund ("SBA")
$ 3,843,185 $
Florida Local Government
Investment Trust
527,911
Money market
566,238
United States treasuries
47,238
United States agencies
198,054
Collateralized mortgage
obligations
-
Unit Investment trusts
163,813
Municipal obligations
-
Domestic corporate bonds
Foreign corporate bonds
-
Domestic corporate equities
8,647,248
Foreign corporate equities
784,942
EFT equities
14,305
Real estate investment trust
-
Level Level Total
$ $ 3,843,185
527,911
566,238
47,238
198,054
1,747,909
1,747,909
-
163,813
168,172
168,172
1,248,296
1,248,296
324,014
324,014
1,155,238
9,802,486
-
784,942
- 14,305
718,484 718,484
$ 14,792,934 $ 4,643,629 $ 718,484 $ 20,155,047
4. RECEIVABLES
Receivables are comprised of the following at year-end:
Governmental Business -type
Activities Activities Total
Accounts receivable $ 320,316 $ 8,786 $ 329,102
Due from other governments 935,979 23,002 958,981
$ 1,256,295 $ 31,788 $ 1,288,083
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 $ 568,523 $ 261,834 $ 830,357
Due to other governments 142,190 13,549 155,739
$ 710,713 $ 275,383 $ 986,096
67
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
6. INTERFUND RECEIVABLES AND PAYABLES AND TRANSFERS
The composition of interfund balances as of September 30, 2019, was as follows:
Due to and from primary government funds
Due from Due to Other
Other Funds Funds
General Fund $ 650,000 $ -
Golf Course - 500,000
Airport 150,000
$ 650,000 $ 650,000
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 $ $ 25,000
Discretionary Sales Tax 536,914
Golf Course 1,205,294 -
Airport 561,914 -
Building - 1,205,294
$ 1,767,208 $ 1,767,208
The balance of $536,914 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 $25,000 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 $1,205,294 was
advanced from the Building Fund to replace the irrigation system and make other improvements at the
Golf Course.
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
For the year ended September 30, 2019, interfund transfers consisted of the following:
General Fund
Discretionary Sales Tax Fund
Riverfront Redevelopment Fund
Stormwater Utility Fund
Nonmajor Governmental Funds
Golf Course
Airport Fund
Building Fund
Transfers in Transfers out
$ 23,928 $
23,244
-
1,600,870
20,457
111,245
-
133,759
2,407,043
786,806
-
8,604
204,496
-
8,604
$ 2,664,528 $ 2,664,528
7. CAPITAL ASSETS
Capital asset activity for the primary government for the year ended September 30, 2019, was as follows:
Beginning Ending
Balance Additions Disposals Transfers Balance
Governmental activities
Capital assets, not being depreciated:
Land $ 9,123,041 $ - $ - $ - $ 9,123,041
Construction in progress 188,759 1,852,947 (43,729) (1,792,009) 205,968
9,311,800 1,852,947 (43,729) (1,792,009) 9,329,009
Capital assets, being depreciated:
Buildings
14,103,789
24,696
(12,500)
153,697
14,269,682
Non -building improvements
7,227,964
38,327
(200,541)
44,338
7,110,088
Machinery and equipment
9,805,299
293,823
(742,017)
905,934
10,263,039
Infrastructure
42,583,530
-
(65,465)
688,040
43,206,105
73,720,582
356,846
(1,020,523)
1,792,009
74,848,914
Less accumulated depreciation for:
Buildings
(6,111,199)
(406,108)
10,573
-
(6,506,734)
Non -building improvements
(4,488,488)
(308,621)
197,584
(4,599,525)
Machinery and equipment
(7,581,820)
(948,296)
739,487
(7,790,629)
Infrastructure
(24,696,895)
(1,565,408)
46,235
(26,216,068)
(42,878,402)
(3,228,433)
993,879
-
(45,112,956)
Total capital assets
being depreciated, net
30,842,180
(2,871,587)
(26,644)
1,792,009
29,735,958
Governmental activities
capital assets, net $
40,153,980 $
(1,018,640) $
(70,373) $
-
$ 39,064,967
. 'A
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Beginning
Ending
Balance
Additions
Disposals
Transfers
Balance
Business -type activities
Capital assets, not being depreciated:
Land $ 9,060
$ - $
$
$ 9,060
Construction in progress 56,228
3,049,055
(624,476)
2,480,807
65,288
3,049,055
(624,476)
2,489,867
Capital assets, being depreciated:
Buildings 9,447,955
21,700
616,870
10,086,525
Non -building improvements 2,864,828
-
(4,375)
7,606
2,868,059
Machinery and equipment 1,625,519
34,942
(88,263)
-
1,572,198
Infrastructure 11,034,566
-
-
11,034,566
24,972,868
56,642
(92,638)
624,476
25,561,348
Less accumulated depreciation for:
Buildings (2,175,541)
(272,597)
-
(2,448,138)
Non -building improvements (1,454,805)
(127,067)
3,184
(1,578,688)
Machinery and equipment (968,485)
(193,297)
70,365
(1,091,417)
Infrastructure (5,260,369)
(520,581)
-
(5,780,950)
(9,859,200)
(1,113,542)
73,549
-
(10,899,193)
Total capital assets
being depreciated, net 15,113,668
(1,056,900)
(19,089)
624,476
14,662,155
Business -type activities
capital assets, net $ 15,178,956
$ 1,992,155 $
(19,089)
$ -
$ 17,152,022
Depreciation expense was charged to
functions/programs
of the primary
government as follows:
Depreciation of governmental activities by function
General government
$ 419,304
Public safety
356,175
Physical environment
1,160,455
Transportation
887,069
Cultural and recreation
405,430
Total governmental activities
$ 3,228,433
Depreciation of business -type activities by function
Golf course
$ 219,216
Airport
873,173
Building
21,153
Total business -type activities
$ 1,113,542
70
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, 2019, 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, 2019:
Beginning Ending Due Within
Balance Additions Deductions Balance One Year
Governmental activities
Notes from direct
borrowings and direct
placements $ 2,585,000 $ - $ (601,000) $ 1,984,000 $ 611,000
Compensated absences 1,404,552 498,245 (465,735) 1,437,062 136,485
Pollution remediation 91,200 - 91,200 -
Totals governmental
activities $ 4,080,752 $ 498,245 $ (1,066,735) $ 3,512,262 $ 747,485
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.
$ 820,000
1,164,000
$ 1,984,000
71
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, 2019:
Beginning
Ending
Due Within
Balance
Additions Deductions
Balance
One Year
Business -type activities
Compensated absences
$ 228,678
$ 43,804 $ (52,635)
$ 219,847
8,629
Capital lease
206,167
- (49,996)
156,171
51,768
Totals business -type
activities
$ 434,845
$ 43,804 $ (102,631)
$ 376,018
$ 60,397
Annual debt service requirements to maturity for long-term debt are as follows:
Governmental Activities
Year Ended
September 30,
Principal
Interest
2020
$ 611,000
$ 34,939
2021
620,000
23,868
2022
632,000
12,635
2023
121,000
1,174
$ 1,984,000 $ 72,616
Business -type Activities
Year Ended
September 30, Principal Interest
2020 $ 51,768 $ 4,623
2021 53,602 2,789
2022 50,801 890
$ 156,171 $ 8,302
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.
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.
72
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
9. LEASES
Operating Leases - Lessee
The City is obligated under a lease for land accounted for as an operating lease. Operating leases do not
give rise to property rights or lease obligations. Total costs for the lease was $100,000 for the fiscal year
ended September 30, 2019. 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, 2019:
Year Ended
September 30,
2020
2021
2022
2023
2024
2025-2029
2030-2034
2035-2039
2040-2044
2045
Golf Course
Lessee
100,000
100,000
100,000
100,000
100,000
500,000
500,000
500,000
500,000
100,000
Total $ 2,600,000
73
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
2020
$ 233,859
2021
236,460
2022
239,373
2023
221,667
2024
206,367
2025-2029
991,438
2030-2034
1,091,410
2035-2039
1,213,041
2040-2044
1,361,023
2045-2049
1,117,067
2050-2054
1,230,118
2055
276,318
Total $ 8,418,141
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
2020
$ 344,557
2021
351,856
2022
351,856
2023
351,856
2024
289,536
2025-2029
1,249,093
2030-2034
1,034,452
2035-2039
404,183
2040-2044
258,975
2045
51,795
Total $ 4,688,159
74
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, 2019, was 3.1514 mills. Total tax collections
were approximately 101% 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.
75
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, 2018 to determine the required contribution for the fiscal year ending September 30, 2019.
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, 2019, 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, 2019, employee membership data was as follows:
Inactive plan members or beneficiaries currently receiving benefits 17
Inactive plan members entitled to but not yet receiving benefits 11
Active plan members 41
Total membership 69
76
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, 2019, the annual money -weighted rate of return on
pension plan investments, net of pension plan investment expense, was 1.79 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, 2019, were as follows:
Total pension liability $ 19,905,138
Less: Plan fiduciary net position (15,814,120)
City's net pension liability $ 4,091,018
Plan fiduciary net position as
percentage of total pension
liability 79.45%
Actuarial Assumptions. The total pension liability was determined by an actuarial valuation as of
October 1, 2018 updated to September 30, 2019 (the measurement date) using the following actuarial
assumptions applied to all measurement periods.
Inflation 2.30%
Salary increases Service based
Discount rate 7.20%
Investment rate of return 7.20%
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 13, 2019, for the period 1999-2012.
77
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, 2019 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%
5.32%
2.79%
International equity
12.50%
4.63%
0.58%
Fixed income
25.00%
1.50%
0.38%
Real Estate
5.00%
4.96%
0.25%
Master Limited Partnerships
5.00%
4.60%
0.23%
Total
100.00%
4.23%
Inflation
Risk adjustments
Investment rate of return
2.30%
0.67%
7.20%
Discount Rate. The discount rate used to measure the total pension liability was 7.20 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.
78
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 7.20 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 (6.20 percent) or one percentage point higher (8.20 percent) than the current rate.
Net Pension Liability
One Percent Current One Percent
Decrease Discount Rate Increase
6.20% 7.20% 8.20%
$ 6,681,777 $ 4,091,018 $ 1,953,764
Changes in the Net Pension Liability. The components of the change in the net pension liability are
summarized as follows:
Balances at September 30, 2018
Changes for the year:
Service cost
Interest on total pension liability
Differences between expected and
actual experience
Assumption changes
Benefit payments, including refunds
of employee contributions
Employer contributions
State contributions
Employee contributions
Buy back contributions
Pension plan net investment
income
Administrative expense
Net changes
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
$ 18,491,325 $ 15,167,320 $ 3,324,005
609,880 609,880
1,371,857 1,371,857
(25,912) (25,912)
22,520 22,520
(617,282) (617,282)
595,045 (595,045)
198,770 (198,770)
- 223,495 (223,495)
52,749 52,749
261,888 (261,888)
- (67,866) 67,866
1,413,812 646,799 767,013
Balances at September 30, 2019 $ 19,905,137 $ 15,814,119 $ 4,091,018
State statutes mandate that the State contribution be recorded as revenue to the General Fund and then
paid to the Pension Trust Fund.
WA
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, 2019, the City recognized pension expense of $1,136,848. At
September 30, 2019, 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
$ 145,470
$ 90,346
$ 55,124
Changes in assumptions
542,267
-
542,267
Net difference between projected and actual
earnings on pension plan investments
435,716
-
435,716
$ 1,123,453
$ 90,346
$ 1,033,107
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
2020
$ 219,159
2021
264,072
2022
357,512
2023
192,364
Total
$ 1,033,107
Payable to the Pension Plan. At September 30, 2019, the City reported
$0 payable to the police officer's
pension plan.
:1,
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, 2019, was 69.
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.
81
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 2018-2019 fiscal year.
Employees do not contribute to this plan. Contributions to the CWA Pension Plan for the fiscal years
ended September 30, 2016, 2017, 2018, and 2019 were $200,889, $204,035, $217,695, and $241,992,
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, 2019, 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.
82
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 2018-2019 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, 2018, and 2019 were $151,891, $120,879,
$142,347, and $151,754 respectively, which are equal to 100% of the required contribution for each year.
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.
15.FUND BALANCES -GOVERNMENTAL FUNDS
In accordance with GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, the City classifies
fund balances based primarily on the extent to which it is bound to observe constraints imposed upon the use of the resources
reported in governmental funds. Detailed information on fund balances of governmental funds is as follows:
Discretionary
Riverfront
Stormwater
Nonmajor
General Fund
Sales Tax
Redevelopment
Utility
Funds
Total
Nonspendable:
Inventory
$ 46,326
$
$
$
$ $
46,326
Prepaids
23,238
23,238
Long-term advances
25,000
25,000
Permanent fund corpus
-
1,036,571
1,036,571
Total nonspendable
94,564
1,036,571
1,131,135
Restricted for:
Debt service
-
178,562
178,562
Infrastructure
5,584,628
539,111
6,123,739
Redevelopment
-
374,104
-
374,104
Stormwater
-
889,713
247,172
1,136,885
Law enforcement
103,900
-
-
-
37,056
140,956
Total restricted
103,900
5,584,628
374,104
889,713
1,001,901
7,954,246
Committed for:
Recreational system
development
-
-
-
-
497,181
497,181
Development of
public parking
55,991
55,991
Total committed
-
553,172
553,172
Assigned for:
Law enforcement events
12,157
-
12,157
Unassigned (deficit)
Total fund balances,
governmental funds
5,988,440
(5,730) 5,982,710
$ 6,199,061 $ 5,584,628 $ 374,104 $ 889,713 $ 2,585,914 $ 15,633,420
83
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, 2019, was as follows:
Governmental Business -type
Activities Activities Total
Capital assets:
Capital assets not being depreciated $ 9,329,009 $ 2,489,867 $ 11,818,876
Capital assets being depreciated, net 29,735,958 14,662,155 44,398,113
39,064,967 17,152,022 56,216,989
Related debt:
Notes payable
Capital lease
Net investment in capital assets
17. COMMITMENTS AND CONTINGENCIES
Contracts and Other Commitments
1,984,000 - 1,984,000
- 156,171 156,171
1,984,000 156,171 2,140,171
$ 37,080,967 $ 16,995,851 $ 54,076,818
The City has various contracts and commitments outstanding as of September 30, 2019. In the Capital Projects
Fund, there are contracts for street repaving and reconstruction, replacing the Public Facilities Compound,
making improvements to the Cemetery, constructing Pickleball Courts, improving the Working Waterfront,
completing construction of Taxiway C and constructing Hangar D.
A summary of these projects at September 30, 2019 is as follows:
Total Contract Total Paid as of Encumbered at
Price September 30, September 30,
2019 2019
General Capital Projects - Major Fund
Street Repaving Et Reconstruction $
414,750 $
8,000 $
Public Facilities Compound
1,737,649
-
-
Pickleball Courts
479,762
120,751
326,929
Working Waterfront Phase 3
420,000
19,671
2,997
Taxiway C Construction
2,503,596
2,211,833
291,763
Construction of Hangar D
2,250,000
69,199
4,579
Total $
7,805,757 $
2,429,454 $
626,268
84
REQUIRED SUPPLEMENTARY INFORMATION
85
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,
2019
2018
2017
Total pension liability
Service cost
$ 609,880
$ 589,149
$ 479,778
Interest on total pension liability
1,371,857
1,270,670
1,179,511
Change in excess state money
-
(84,863)
-
Changes of benefit terms
613,973
Differences between expected and actual experience
(25,912)
164,601
20,758
Changes of assumptions
22,520
382,825
Contributions - buy back
52,749
-
Benefit payments, including refunds of employee contributions
(617,282)
(700,733)
(495,629)
Net change in total pension liability
1,413,812
1,238,824
2,181,216
Total pension liability, beginning of year
18,491,326
17,252,502
15,071,286
Total pension liability, end of year
19,905,138
18,491,326
17,252,502
Plan fiduciary net position
Employer contributions
595,045
525,296
337,201
State contributions
198,770
188,923
168,628
Employee contributions
223,495
204,854
177,585
Buy back contributions
52,749
-
-
Pension plan net investment income (loss)
261,888
1,028,549
1,371,657
Benefit payments
(617,282)
(700,733)
(495,629)
Administrative expense
(67,866)
(82,088)
(45,633)
Net change in plan fiduciary net position
646,799
1,164,801
1,513,809
Plan fiduciary net position, beginning of year
15,167,321
14,002,520
12,488,711
Plan fiduciary net position, end of year
15,814,120
15,167,321
14,002,520
Net pension liability
$ 4,091,018
$ 3,324,005
$ 3,249,982
Plan fiduciary net position as a percentage of total pension liability
79.45%
82.02%
81.16%
Covered payroll
$ 2,793,692
$ 2,560,670
$ 2,438,012
Net pension liability as a percentage of covered payroll
146.44%
129.81%
133.30%
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, 2018 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 7.30% to 7.20%.
86
Fiscal Year
Fiscal Year
Fiscal Year
Fiscal Year
Ending
Ending
Ending
Ending
September 30,
September 30,
September 30,
September 30,
2016
2015
2014
2013
$ 418,143
$ 403,611
$ 396,147
$ 367,653
1,027,558
979,259
914,243
853,018
-
22,218
24,386
-
-
(4,316)
-
59,175
(240,633)
626,069
223,200
(493,765)
(496,363)
(452,892)
(465,435)
1,637,180
886,976
881,884
755,236
13, 434,106
12, 547,130
11, 665, 246
10, 910, 010
15,071,286
13,434,106
12,547,130
11,665,246
322,998
320,179
401,103
396,603
169,027
145,700
147,868
145,961
167,309
161,270
160,494
154,683
1,067,139
(60,326)
951,910
1,029,818
(493,765)
(496,363)
(452,892)
(465,435)
(28,025)
(39,673)
(27,815)
(32,153)
1,204,683
30,787
1,180,668
1,229,477
11,284,028
11,253,241
10,072,573
8,843,096
12,488,711
11,284,028
11,253,241
10,072,573
$ 2,582,575
$ 2,150,078
$ 1,293,889
$ 1,592,673
82.86%
84.00%
89.69%
86.35%
$ 2,263,866
$ 2,154,612
$ 2,106,767
$ 2,131,399
114.08%
99.79%
61.42%
74.72%
87
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%
2019
1.79%
(') 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.
Fiscal Year Actuarially
Ending
Determined
September 30,
Contribution
2013
$ 506,560 $
2014
524,585
2015
596,502
2016
667,764
2017
768,277
2018
673,456
2019
793,409
Schedule of Contributions
City State
Contribution Contribution
396,603 $
401,103
320,179
322,998
337,201
525,296
595,045
145,961
147,868
145,700
169,027
168,628
188,923
198,770
Contribution
$
Deficiency
Covered
(Excess)
Payroll
(36,004)
$ 2,131,399
(24,386)
2,106,767
130,623
2,154,612
175,739
2,263,866
262,448
2,438,012
(40,763)
2,560,670
(406)
2,793,692
Actual
Contribution
as Percentage
of Covered
Payroll
25.46%
26.06%
21.62%
21.73%
20.75%
27.89%
28.41
::,
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
15 Years (as of October 1, 2019)
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 2 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%
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
10.00%
Less than 2 years
0.00%
2.41 % for amortization of all UAAL bases
Market Value, net of investment -related expenses
a
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
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
2019
241,992
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.
91
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92
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
CITY OF SEBASTIAN, FLORIDA
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2019
Assets
Cash and cash equivalents
Investments
Accounts receivable
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
Debt Service
Stormwater
Local
Law
Utility
Option
Parking
Recreation
Enforcement
Revenue
Gas Tax
In -Lieu -of
Impact Fee
Forfeiture
Bonds 2003
$ 427,022
$
- $
261,757
$ 4,180
$ 178,562
53,177
55,991
235,424
21,096
-
-
-
-
11,780
62,912
-
-
-
-
$ 543,111
$
55,991 $
497,181
$ 37,056
$ 178,562
$ 4,000
$
- $
-
$ -
$ -
539,111
-
-
37,056
178,562
-
55,991
497,181
-
-
539,111
55,991
497,181
37,056
178,562
$ 543,111
$
55,991 $
497,181
$ 37,056
$ 178,562
94
Capital Projects Funds Permanent
Total
Stormwater
Nonmajor
Capital Capital
Transportation
Utility
Governmental
Projects Improvements
Improvements
Improvements
Cemetery
Funds
$ $ 68,605
$
$ 177,157
$ 178,382
$ 1,295,665
-
-
858,189
1,223,877
-
-
11,780
-
71,538
-
134,450
$ $ 68,605
$
$ 248,695
$ 1,036,571
$ 2,665,772
$ $ 74,335
$
$ 1,523
$ -
$ 79,858
- 1,036,571 1,036,571
247,172 1,001,901
- 553,172
(5,730) (5,730)
(5,730)
247,172
1,036,571
2,585,914
$ $ 68,605 $
$ 248,695 $
1,036,571
$ 2,665,772
95
CITY OF SEBASTIAN, FLORIDA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2019
Special Revenue Funds
Debt Service
Stormwater
Local
Law
Utility
Option
Parking
Recreation
Enforcement
Revenue
Gas Tax
In -Lieu -of
Impact Fee
Forfeiture
Bonds 2003
Revenues
Intergovernmental
$ 724,318
$
$ -
$ 11,780
$
Impact fees
-
129,550
-
Charges for services
-
-
Fines
-
-
150
Investment earnings
8,902
1,393
14,251
995
5,464
Otherrevenues
-
-
-
1,500
-
Contributions and donations
-
-
-
-
-
Total revenues
733,220
1,393
143,801
14,425
5,464
Expenditures
Current:
General government
-
-
-
-
-
Public safety
5,066
Physical environment
-
-
Transportation
80,205
Culture and recreation
-
-
Debt service:
Principal
224,000
377,000
Interest and fiscal charges
19,187
-
26,659
Capital outlay
-
16,425
-
Total expenditures
323,392
-
-
21,491
403,659
Revenues over(under)expenditures
409,828
1,393
143,801
(7,066)
(398,195)
Other financing sources (uses)
Transfers in
-
-
-
402,914
Transfers out
(424,061)
(299,689)
-
Total other financing sources (uses)
(424,061)
-
(299,689)
402,914
Net change in fund balances
(14,233)
1,393
(155,888)
(7,066)
4,719
Fund balances, beginning of year
553,344
54,598
653,069
44,122
173,843
Fund balances, end of year
$ 539,111
$ 55,991
$ 497,181
$ 37,056
$ 178,562
96
Capital Projects Funds
Permanent
Total
Stormwater
Nonmajor
Capital
Capital
Transportation
Utility
Governmental
Projects
Improvements
Improvements
Improvements
Cemetery
Funds
$
$ 50,001
$
$ 71,538
$
$ 857,637
-
-
129,550
111,350
111,350
-
150
24,824
55,829
-
1,500
8,800
-
-
-
8,800
8,800
50,001
71,538
136,174
1,164,816
58,052
-
-
-
58,052
-
-
-
-
5,066
55,480
187,913
55,000
298,393
-
-
-
80,205
22,990
22,990
-
601,000
-
-
-
-
45,846
799,191
343,008
449,127
217,894
2,350
1,827,995
857,243
421,478
449,127
405,807
57,350
2,939,547
(848,443)
(371,477)
(449,127)
(334,269)
78,824
(1,774,731)
848,443
368,795
449,127
337,764
-
2,407,043
-
-
-
(23,928)
(39,128)
(786,806)
848,443
368,795
449,127
313,836
(39,128)
1,620,237
-
(2,682)
-
(20,433)
39,696
(154,494)
(3,048)
267,605
996,875
2,740,408
$
$ (5,730)
$
$ 247,172
$ 1,036,571
$ 2,585,914
97
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, 2019
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Intergovernmental
$ 753,595
$ 753,595 $
724,318
$ (29,277)
Investment earnings
3,764
3,764
8,902
5,138
Total revenues
757,359
757,359
733,220
(24,139)
Expenditures
Current:
Transportation
102,700
102,700
80,205
(22,495)
Debt service:
Principal
224,000
224,000
224,000
-
Interest and fiscal charges
19,177
19,177
19,187
10
Capital outlay
3,200
3,200
-
(3,200)
Total expenditures
349,077
349,077
323,392
(25,685)
Revenues over expenditures
408,282
408,282
409,828
1,546
Other financing uses
Transfers out
(877,392)
(877,392)
(424,061)
453,331
Net changes in fund balance
(469,110)
(469,110)
(14,233)
454,877
Fund balance, beginning of year
553,344
553,344
553,344
-
Fund balance, end of year
$ 84,234
$ 84,234 $
539,111
$ 454,877
CITY OF SEBASTIAN, FLORIDA
Schedule of Revenues, Expenditure
and Changes in Fund Balance - Budget and Actual
Parking In -Lieu -Of Special Revenue Fund
For the Year Ended September 30, 2019
Original
Budget
Revenues
Investment earnings $ 406 $
Fund balance, beginning of year 54,598
Fund balance, end of year $ 55,004 $
Final
Budget
406 $
54,598
55,004 $
Actual
1,393 $
54,598
55,991 $
Actual Over
(Under) Final
Budget
987
987
..A
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, 2019
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Impact fees
$ 163,800
$ 163,800 $
129,550
$ (34,250)
Investment earnings
10,428
10,428
14,251
3,823
Total revenues
174,228
174,228
143,801
(30,427)
Other financing uses
Transfers out
(592,643)
(592,643)
(299,689)
292,954
Net change in fund balance
(418,415)
(418,415)
(155,888)
262,527
Fund balance, beginning of year
653,069
653,069
653,069
-
Fund balance, end of year
$ 234,654
$ 234,654 $
497,181
$ 262,527
100
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, 2019
Revenues
Intergovernmental
Fines
Investment earnings
Otherrevenues
Total revenues
Expenditures
Current:
Public safety
Capital outlay
Total expenditures
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Original
Budget
1,000
145
1,145
1,145
44,122
45,267 $
Actual Over
Final (Under) Final
Budget Actual Budget
- $ 11,780 $ 11,780
1,000 150 (850)
145 995 850
- 1,500 1,500
1,145 14,425 13,280
5,066
5,066
16,425
16,425
- 21,491
21,491
1,145 (7,066)
(8,211)
44,122 44,122
45,267 $ 37,056 $
(8,211)
101
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, 2019
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Investment earnings
$ 900
$ 900 $
5,464
$ 4,564
Expenditures
Debt service:
Principal
377,000
377,000
377,000
-
Interest and fiscal charges
26,659
26,659
26,659
Total expenditures
403,659
403,659
403,659
-
Revenues under expenditures
(402,759)
(402,759)
(398,195)
4,564
Other financing sources
Transfers in
403,792
403,792
402,914
(878)
Net change in fund balance
1,033
1,033
4,719
3,686
Fund balance, beginning of year
173,843
173,843
173,843
-
Fund balance, end of year
$ 174,876
$ 174,876 $
178,562
$ 3,686
102
AGENCY FUND
103
CITY OF SEBASTIAN, FLORIDA
Combining Statement of Changes in Assets and Liabilities
Agency Fund
For the Year Ended September 30, 2019
Balance
October 1,
2018 Additions
Performance Deposits
Assets
Cash and cash equivalents
Investments, at fair value
Total assets
Liabilities
Refunds payable
Balance
September 30,
Deletions 2019
$ 6,930 $ - $ 3,820 $ 10,750
73,750 18,590 - 92,340
$ 80,680 $ 18,590 $ 3,820 $ 103,090
$ 80,680 $ 18,590 $ 3,820 $ 103,090
104
CAPITAL ASSETS
105
CITY OF SEBASTIAN, FLORIDA
Comparative Schedule by Source
Capital Assets Used in the Operation of Governmental Funds
September 30, 2019
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
2019 2018
$ 9,123,041
$ 9,123,041
14,269,682
14,103,789
7,110,088
7,227,964
10,263,039
9,805,299
43,206,105
42,583,530
205,968
188,759
$ 84,177,923 $ 83,032,382
$ 4,479,115
$ 4,483,123
2,940,621
2,940,621
507,031
507,031
12,142,790
12,817,734
102,460
97,815
3,124,996
2,849,566
8,490,537
8,347,685
2,693,061
2,693,061
634,728
599,879
2,931,511
2,931,511
26,508,741
25,566,085
4,925,363
4,501,302
13,816,786
13,816,786
90,621
90,621
789,562
789,562
$ 84,177,923 $ 83,032,382
106
CITY OF SEBASTIAN, FLORIDA
Schedule by Function and Activity
Capital Assets Used in the Operation of Governmental Funds
September 30, 2019
Functions / Programs
General government:
City manager
City clerk
Administrative services
MIS
Audio visual/broadcast
Facilities maintenance
Community development
Non -departmental
Total general government
Public safety:
Special operations
Administration
School resource
Road patrol
Community policing
Code enforcement
Investigations
Communications
Building department
Total public safety
Transportation:
Central garage
Roads and drainage
Total transportation
Economic environment:
Non -departmental
Physical environment:
Stormwater
Cemetery
Total physical environment
Culture/recreation:
Parks and recreation
Total
Construction in progress
Total
Land
Machinery
Non -Building and
Buildings Improvements Equipment Infrastructure
5,841
1,092,733
- 84,426
4,474,459 6,184,992
4,474,459 7,367,992
9,560 3,799,272
1,100
56,151
32,086
143,042
232,379
89,320
1,700
$ 49,954 $
4,003
2,294
1,252,728
18,420
431,872
55,374
209,000
2,023,645
29,993
345,328
37,520
3,296,288
7,260
54,856
394,504
20,286
6,295
Total
$ 49,954
4,003
3,394
1,314,720
18,420
1,556,691
139,800
52,699 11,064,192
52,699 14,151,174
29,993
4,243,480
37,520
3,296,288
7,260
54,856
396,204
20,286
6,295
9,560
3,799,272
91,020
4,192,330
-
8,092,182
-
130,489
114,192
229,999
674
475,354
47,125
166,907
1,087,622
1,255,235
20,374,216
22,931,105
47,125
297,396
1,201,814
1,485,234
20,374,890
23,406,459
2,308,392
1,040,590
6,562
-
-
3,355,544
-
-
3,870
1,812,886
20,392,692
22,209,448
572,181
201,153
110,204
84,271
22,717
990,526
572,181
201,153
114,074
1,897,157
20,415,409
23,199,974
1,711,324
1,563,279
5,464,239
664,673
2,363,107
11,766,622
$ 9,123,041
$ 14,269,682 $
7,110,088
$ 10,263,039
$ 43,206,105
83,971,955
205,968
$ 84,177,923
107
CITY OF SEBASTIAN, FLORIDA
Schedule of Changes by Function and Activity
Capital Assets Used in the Operation of Governmental Funds
September 30, 2019
Capital Assets
October 1,
Functions / Programs 2018 Additions
General government:
City manager
City clerk
Administrative services
MIS
Audio visual/broadcast
Facilities maintenance
Community development
Non -departmental
Total general government
Public safety:
Special operations
Administration
School resource
Road patrol
Community policing
Code enforcement
Investigations
Support services
Communications
Building department
Total public safety
Transportation:
Central garage
Roads and drainage
Total transportation
Economic environment:
Non -departmental
Physical environment:
Stormwater
Cemetery
Total physical environment
Culture/recreation:
Parks and recreation
Total
Construction in progress
Total
Capital Assets
Transfers Transfers September 30,
Disposals In Out 2019
$ 49,954 $
$
$
$
$ 49,954
4,003
4,003
4,744
1,350
3,394
1,039,037
127,701
150,663
298,645
-
1,314,720
18,420
-
-
-
-
18,420
1,542,392
42,424
14,225
6,895
20,795
1,556,691
139,800
-
-
-
-
139,800
11,047,789
16,403
-
-
-
11,064,192
13,846,139
186,528
164,888
305,540
22,145
14,151,174
33,480
-
3,487
-
-
29,993
4,331,608
15,530
48,027
55,631
4,243,480
40,132
-
2,612
-
37,520
3,007,420
611,395
282,549
39,978
3,296,288
11,507
-
4,247
-
7,260
54,856
-
-
54,856
279,207
160,908
43,911
-
396,204
50,516
-
2,529
47,987
-
284,449
3,320
83,247
184,236
20,286
6,295
-
-
-
6,295
8,099,470
791,153
470,609
-
327,832
8,092,182
459,281
21,131
8,335
28,209
24,932
475,354
22,283,680
564,265
2,313
90,000
4,527
22,931,105
22,742,961
585,396
10,648
118,209
29,459
23,406,459
3,355,544
-
-
-
-
3,355,544
22,121,785
243,018
82,616
35,230
107,969
22,209,448
947,388
31,851
-
23,582
12,295
990,526
23,069,173
274,869
82,616
58,812
120,264
23,199,974
11,730,336
315,532
296,385
31,574
14,435
11,766,622
82,843,623
2,153,478
1,025,146
514,135
514,135
83,971,955
188,759
17,209
-
-
-
205,968
$ 83,032,382 $
2,170,687 $
1,025,146 $
514,135 $
514,135
$ 84,177,923
108
STATISTICAL SECTION
109
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110
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. 112
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. 124
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. 131
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. 136
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. 140
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.
111
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
Fiscal Year
2019 2018 2017 2016 2015
$ 37,080,967 $ 37,568,980 $ 37,461,026 $ 35,886,087 $ 35,220,857
8,976,174 6,419,900 5,113,543 5,209,372 4,997,724
2,056,430 1,649,796 1,236,088 3,615,777 3,467,014
$ 48,113,571 $ 45,638,676 $ 43,810,657 $ 44,711,236 $ 43,685,595
Business -type activities
Net investment in capital assets
$ 16,995,851
$ 14,972,789
$ 13,384,969
$ 11,989,666
$ 10,517,895
Restricted
-
-
-
-
-
Unrestricted
(654,928)
(777,422)
(1,008,976)
(717,053)
67,779
Total business -type activities net position $
16,340,923
$ 14,195,367
$ 12,375,993
$ 11,272,613
$ 10,585,674
Primary Government
Net investment in capital assets $
54,076,818
$ 52,541,769
$ 50,845,995
$ 47,875,753
$ 45,738,752
Restricted
8,976,174
6,419,900
5,113,543
5,209,372
4,997,724
Unrestricted
1,401,502
872,374
227,112
2,898,724
3,534,793
Total primary government net position $ 64,454,494 $ 59,834,043 $ 56,186,650 $ 55,983,849 $ 54,271,269
112
Table 1 - Unaudited
Fiscal Year
2014 2013 2012 2011 2010
$ 35,210,526 $ 32,038,749 $ 31,500,173 $ 31,541,953 $ 28,938,587
5,115,627 5,839,440 6,192,777 5,668,155 8,757,043
3,330,400 4,577,440 3,607,228 4,052,751 3,889,011
$ 43,656,553 $ 42,455,629 $ 41,300,178 $ 41,262,859 $ 41,584,641
$ 10,439,804 $ 10,846,501 $ 11,181,823 $ 11,850,561 $ 11,389,704
(103,116) (306,497) (490,298) (644,620) (342,340)
$ 10,336,688 $ 10,540,004 $ 10,691,525 $ 11,205,941 $ 11,047,364
$ 45,650,330 $ 42,885,250 $ 42,681,996 $ 43,392,514 $ 40,328,291
5,115,627 5,839,440 6,192,777 5,668,155 8,757,043
3,227,284 4,270,943 3,116,930 3,408,131 3,546,671
$ 53,993,241 $ 52,995,633 $ 51,991,703 $ 52,468,800 $ 52,632,005
113
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
2019 2018 2017 2016 2015
$ 3,970,541 $ 3,926,479 $ 3,379,369 $ 3,285,607 $ 3,015,536
6,613,707
6,227,299
6,549,037
5,476,136
5,164,197
3,106,764
3,431,933
3,769,377
2,538,752
2,759,461
2,022,117
1,949,882
2,279,149
1,861,946
2,024,814
402,986
238,597
106,577
364,675
194,630
1,434,296
1,279,635
1,326,245
1,191,488
1,293,246
38,539
56,523
63,141
82,943
100,468
17,588,950
17,110,348
17,472,895
14,801,547
14,552,352
1,533,749
1,555,853
1,537,332
1,584,214
1,409,829
1,336,180
1,328,258
1,361,134
1,197,549
1,038,361
715,846
664,066
586,752
546,649
531,087
3,585,775
3,548,177
3,485,218
3,328,412
2,979,277
21,174,725
20,658,525
20,958,113
18,129,959
17,531,629
532,721
466,261
362,631
374,581
372,255
147,121
74,216
124,800
98,446
80,763
2,161,464
1,064,659
1,021,038
1,049,735
1,087,642
54,769
52,160
48,781
53,959
67,940
803,092
1,776,070
250,292
323,101
345,937
251,088
181,050
947,274
809,932
994,546
3,950,255
3,614,416
2,754,816
2,709,754
2,949,083
1,400,939
1,257,047
1,058,939
1,135,357
1,333,189
536,442
583,310
499,321
516,403
457,318
864,068
911,643
747,950
810,069
712,620
46,771
115,907
116,055
-
-
2,670,116
2,120,953
1,566,737
841,668
702,154
5,518,336
4,988,860
3,989,002
3,303,497
3,205,281
9,468,591
8,603,276
6,743,818
6,013,251
6,154,364
(13,638,695)
(13,495,932)
(14,718,079)
(12,091,793)
(11,603,269)
1,932,561
1,440,683
503,784
(24,915)
226,004
(11,706,134)
(12,055,249)
(14,214,295)
(12,116,708)
(11,377,265)
114
Table 2 - Unaudited
Fiscal Year
2014 2013 2012 2011 2010
$ 2,923,398 $ 2,784,485 $ 2,640,677 $ 2,766,575 $ 3,309,381
4,908,374
4,928,203
5,025,274
5,546,632
5,720,933
2,310,539
2,039,380
2,007,902
1,558,974
1,947,605
1,828,569
1,845,429
1,800,432
2,263,367
1,863,551
247,891
155,214
170,960
208,518
135,885
1,229,369
1,232,345
1,239,512
1,227,198
1,240,383
235,071
368,432
562,496
546,103
566,410
13,683,211
13,353,488
13,447,253
14,117,367
14,784,148
1,406,770
1,377,039
1,394,731
1,355,266
1,388,158
1,031,464
1,146,905
1,166,588
1,188,788
1,067,525
465,717
417,887
397,295
470,406
496,800
2,903,951
2,941,831
2,958,614
3,014,460
2,952,483
16,587,162
16,295,319
16,405,867
17,131,827
17,736,631
407,068
314,158
214,488
197,945
203,915
76,132
67,297
66,474
92,350
118,368
1,073,015
1,101,864
876,693
868,059
881,338
67,371
70,982
66,954
61,353
62,046
186,295
332,627
187,333
196,534
210,050
739,785
770,123
791,265
838,242
3,178,618
2,549,666
2,657,051
2,203,207
2,254,483
4,654,335
1,277,660
1,302,441
1,394,844
1,382,421
1,335,647
470,703
481,759
491,367
485,229
468,698
700,751
706,964
419,705
401,021
356,264
235,215
230,868
150,083
900,340
904,853
2,684,329
2,722,032
2,455,999
3,169,011
3,065,462
5,233,995
5,379,083
4,659,206
5,423,494
7,719,797
(11,133,545)
(10,696,437)
(11,244,046)
(11,862,884)
(10,129,813)
(219,622)
(219,799)
(502,615)
154,551
112,979
(11,353,167) (10,916,236) (11,746,661) (11,708,333) (10,016,834)
continued...
115
CITY OF SEBASTIAN, FLORIDA
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year
2019
2018
2017
2016
2015
General revenue and other changes in net position
Governmental activities:
Property taxes, levied for general purposes $
4,325,759
$ 4,153,194
$ 4,147,115
$ 3,942,048
$ 3,594,210
Sales and use taxes
2,882,460
2,808,172
5,945,386
5,762,921
5,555,270
Franchise fees
1,343,744
1,316,792
1,271,403
1,257,430
1,241,515
State shared revenues not restricted
to specific programs
7,109,496
6,887,664
2,616,522
2,466,546
2,365,137
Investment earnings
378,657
216,185
135,614
77,317
65,256
Miscellaneous
277,970
312,401
290,269
316,239
240,179
Transfers
(204,496)
(370,457)
(588,809)
(705,067)
2,988
Total governmental activities
16,113,590
15,323,951
13,817,500
13,117,434
13,064,555
Business -type activities:
Investment earnings
8,499
8,234
10,787
6,787
5,368
Miscellaneous
-
-
-
-
20,602
Transfers
204,496
370,457
588,809
705,067
(2,988)
Total business -type activities
212,995
378,691
599,596
711,854
22,982
Total primary government general revenue
16,326,585
15,702,642
14,417,096
13,829,288
13,087,537
Change in net position
Governmental activities
2,474,895
1,828,019
(900,579)
1,025,641
1,461,286
Business -type activities
2,145,556
1,819,374
1,103,380
686,939
248,986
Total primary government change in net
position $
4,620,451
$ 3,647,393
$ 202,801
$ 1,712,580
$ 1,710,272
116
Table 2 - Unaudited
Fiscal Year
2014 2013 2012 2011 2010
$ 3,248,113 $ 3,221,304 $ 3,063,495 $ 3,453,778 $ 4,164,128
5,320,051
5,123,046
4,852,413
4,751,021
4,765,200
1,190,233
1,118,886
1,124,568
1,184,686
1,228,692
2,208,700
2,063,450
1,934,733
1,868,555
1,825,215
43,293
74,650
82,129
111,943
144,432
338,901
315,296
201,538
171,119
149,453
(14,822)
(37,734)
22,489
-
(7,020)
12,334,469
11,878,898
11,281,365
11,541,102
12,270,100
1,484
4,391
6,563
4,026
15,658
-
274
4,125
-
1,194
14,822
37,734
(22,489)
-
7,020
16,306
42,399
(11,801)
4,026
23,872
12,350,775
11,921,297
11,269,564
11,545,128
12,293,972
1,200,924
1,182,461
37,319
(321,782)
2,140,287
(203,316)
(177,400)
(514,416)
158,577
136,851
$ 997,608 $ 1,005,061 $ (477,097) $ (163,205) $ 2,277,138
concluded.
117
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
2019 2018 2017
$ 94,564 $ 234,852 $ 342,505 $
2016 2015
227,651 $ 316,036
103,900
77,185
63,016
46,262
38,544
12,157
13,871
12,350
10,840
8,692
5,988,440
5,047,473
4,089,275
5,526,675
5,289,322
6,199,061
5,373,381
4,507,146
5,811,428
5,652,594
1,036,571
1,542,466
941,061
996,778
928,758
7,850,346
4,822,199
4,131,416
4,193,653
4,181,787
553,172
707,667
995,144
977,868
815,688
(5,730)
(3,048)
(26,370)
(129,401)
(58,618)
9,434,359 7,069,284 6,041,251 6,038,898 5,867,615
$ 15,633,420 $ 12,442,665 $ 10,548,397 $ 11,850,326 $ 11,520,209
118
Table 3 - Unaudited
Fiscal Year
2014
2013
2012
2011
2010
$ 369,329 $
368,564
$ 370,450
$ 346,995
$ 352,248
7,969
28,632
-
-
-
-
-
2,861,708
2,949,139
3,063,585
7,129
7,020
35,707
21,911
31,656
5,348,905
5,065,242
1,734,307
1,784,413
2,164,910
5,733,332
5,469,458
5,002,172
5,102,458
5,612,399
1,390,073
1,323,838
1,289,693
1,494,779
859,463
3,756,950
4,647,950
4,371,826
4,748,376
7,897,580
625,007
589,364
719,686
-
-
(64,875)
-
-
5,707,155 6,561,152 6,381,205 6,243,155 8,757,043
$ 11,440,487 $ 12,030,610 $ 11,383,377 $ 11,345,613 $ 14,369,442
119
CITY OF SEBASTIAN, FLORIDA
Changes in Fund Balances, Governmental Funds
For the Last Ten Fiscal Years
Fiscal Year
2019
2018
2017
2016
2015
Revenues
Taxes
$ 7,208,219 $
6,961,366
$ 10,738,778
$ 10,326,654
$ 9,782,109
Franchise fees
1,343,744
1,316,792
1,271,403
1,257,430
1,241,515
Licenses, fees and permits
146,812
165,922
135,900
136,614
147,219
Intergovernmental
7,996,330
8,648,064
2,991,190
2,709,066
2,742,950
Impact fees
129,550
141,050
102,700
163,800
281,450
Charges for services
2,698,117
1,443,123
1,353,009
1,391,495
1,397,395
Fines
51,146
48,251
96,842
73,059
63,035
Investment earnings
378,657
216,185
135,614
77,317
65,256
Contributions and donations
277,970
55,670
45,420
80,581
48,124
Otherrevenues
37,796
312,401
290,269
316,239
241,597
Total revenues
20,268,341
19,308,824
17,161,125
16,532,255
16,010,650
Expenditures
Current:
General government
3,536,154
3,492,883
2,943,790
3,053,554
2,717,049
Public safety
6,035,675
5,659,861
5,134,388
4,968,258
4,666,343
Physical environment
1,871,853
2,195,332
2,565,532
1,316,697
1,498,706
Transportation
1,142,412
1,079,509
1,333,927
1,168,919
1,187,871
Economic environment
402,986
238,597
73,491
331,589
161,545
Culture and recreation
1,027,371
875,172
927,374
849,789
893,394
Debt service:
Principal
601,000
590,000
931,000
1,935,000
1,567,000
Interest
45,846
56,523
68,512
92,907
108,678
Capital outlay
2,209,793
2,856,222
3,896,231
1,780,358
3,133,330
Total expenditures
16,873,090
17,044,099
17,874,245
15,497,071
15,933,916
Revenues over (under) expenditures
3,395,251
2,264,725
(713,120)
1,035,184
76,734
Other financing sources (Uses)
Issuance of long-term debt
-
-
-
-
-
Transfersin
2,451,428
4,427,037
7,184,858
3,694,279
4,989,726
Transfers out
(2,655,924)
(4,797,494)
(7,773,667)
(4,399,346)
(4,986,738)
Total other financing sources (uses)
(204,496)
(370,457)
(588,809)
(705,067)
2,988
Net change in fund balances
$ 3,190,755 $
1,894,268
$ (1,301,929)
$ 330,117
$ 79,722
Debt service as a percentage of
noncapital expenditures (1)
4.4%
4.6%
7.2%
14.8%
13.1%
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).
120
Table 4 - Unaudited
Fiscal Year
2014
2013
2012
2011
2010
$ 9,123,879
$ 8,894,880
$ 8,465,990
$ 8,762,729 $
9,525,074
1,190,233
1,118,886
1,124,568
1,184,686
1,228,692
138,564
45,500
22,431
1,121,967
1,154,739
2,373,695
2,411,395
2,088,038
23,646
33,182
168,350
169,000
58,500
81,534
90,948
1,431,101
1,462,522
1,158,075
2,249,447
4,572,550
54,140
60,190
57,575
42,250
26,000
43,293
78,411
86,516
-
-
36,801
22,406
216,091
103,795
228,216
338,901
315,296
201,888
224,823
169,039
14,898,957
14,578,486
13,479,672
13,794,877
17,028,440
2,575,605
2,447,893
2,410,345
2,539,211
2,699,289
4,623,060
4,425,000
4,523,802
5,030,708
4,938,147
1,110,788
1,075,162
1,042,349
1,166,309
1,210,823
1,165,004
1,158,945
1,208,411
1,217,521
1,405,310
144,612
122,730
138,531
188,918
129,352
888,795
847,781
876,502
903,836
977,780
2,306,000
1,307,000
3,321,000
1,203,000
2,142,190
413,995
393,447
472,399
521,152
577,593
2,246,399
2,115,561
1,767,058
4,048,051
6,189,026
15,474,258
13,893,519
15,760,397
16,818,706
20,269,510
(575,301)
684,967
(2,280,725)
(3,023,829)
(3,241,070)
3,903,204
(3,918,026)
(14,822)
$ (590,123) $
20.6%
- 2,296,000 -
3,598,949 3,694,765 5,376,658
(3,636,683) (3,672,276) (5,376,658)
(37,734) 2,318,489
647,233 $ 37,764 $ (3,023,829) $
14.4% 27.1 % 13.5%
2,462,000
4,486,626
(4,493,646)
2,454,980
(786,090)
19.3%
121
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
2019
2018
2017
2016
2015
$ 1,096,978 $
1,997,400
$ 390,921 $
479,395 $
534,524
444,199
346,239
334,270
306,381
254,381
2,161,464
1,064,659
1,021,038
1,049,735
1,087,642
13,295
12,908
687,310
656,484
643,146
234,319
193,210
321,277
217,759
429,390
3,950,255
3,614,416
2,754,816
2,709,754
2,949,083
1,401,260
1,355,652
1,170,591
1,135,357
1,333,189
3,253,008
2,704,263
2,070,461
1,358,071
1,159,472
864,068
928,945
747,950
810,069
712,620
5,518,336
4,988,860
3,989,002
3,303,497
3,205,281
$ 9,468,591 $ 8,603,276 $ 6,743,818 $ 6,013,251 $ 6,154,364
122
Table 5 - Unaudited
Fiscal Year
2014 2013 2012 2011 2010
$ 413,727
$ 471,299
$ 230,550
$ 243,039
$ 209,144
246,010
233,309
228,392
234,437
304,630
1,073,015
1,101,864
876,693
930,018
881,338
565,692
560,713
560,055
743,383
614,305
15,501
-
13,998
-
2,556,872
235,721
289,866
293,519
103,606
88,046
2,549,666
2,657,051
2,203,207
2,254,483
4,654,335
1,277,660
1,302,441
1,394,892
1,382,421
1,335,647
705,918
712,627
641,455
1,385,569
1,373,551
700,751
706,964
426,215
401,021
356,264
2,684,329
2,722,032
2,462,562
3,169,011
3,065,462
$ 5,233,995 $ 5,379,083 $ 4,665,769 $ 5,423,494 $ 7,719,797
123
CITY OF SEBASTIAN, FLORIDA Table 6 - Unaudited
Tax Revenues by Source
Governmental Funds
For the Last Ten Fiscal Years
(Rate per $1,000 of assessed value)
Public
Property
Millage
Tax Year
Fiscal Year
Utility z
Taxes'
Total
Rate
2009
2010
$ 2,437,050
$ 4,164,128
$ 6,601,178
3.3456
2010
2011
2,392,345
3,453,778
5,846,123
3.3041
2011
2012
2,387,553
3,063,495
5,451,048
3.3041
2012
2013
2,534,434
3,221,304
5,755,738
3.7166
2013
2014
2,581,427
3,248,113
5,829,540
3.7166
2014
2015
2,638,711
3,594,210
6,232,921
3.8556
2015
2016
2,686,322
3,942,048
6,628,370
3.8556
2016
2017
2,708,980
4,147,115
6,856,095
3.8000
2017
2018
2,808,172
4,153,194
6,961,366
3.4000
2018
2019
2,882,460
4,325,759
7,208,219
3.1514
Property taxes comprise the City's largest and most significant own -source revenue.
2 Public utility taxes include a 10% tax on electric, water, gas and propane purchases, plus a communication
services tax.
124
CITY OF SEBASTIAN, FLORIDA
lrec and Overlapping
Property Tax
Rates
For the Last Ten
Fiscal Years
(Rate per $1,000
of taxable value)
City Direct Rates
Tax
Fiscal
nB
Debt
Year
Year
Service
2009
2010
3.3456
0.0000
2010
2011
3.3041
0.0000
2011
2012
3.3041
0.0000
2012
2013
3.7166
0.0000
2013
2014
3.7166
0.0000
2014
2015
3.8556
0.0000
2015
2016
3.8556
0.0000
2016
2017
3.8000
0.0000
2017
2018
3.4000
0.0000
2018
2019
3.1514
0.0000
Total
Direct
3.3456
3.3041
3.3041
3.7166
3.7166
3.8556
3.8556
3.8000
3.4000
3.1514
Total
County '
6.2693
6.2860
6.9590
6.2572
5.6207
5.6868
5.9468
5.9755
6.1214
6.1086
Overlapping Rates
County
School Board
Basic
Debt
Rate
Service
7.2960
0.3000
7.9200
0.3000
7.8940
0.3500
7.9230
0.3900
8.1160
-
7.9950
7.9550
7.4100
7.0530
6.7930
Table 7 - Unaudited
Mir
Tj
7.5960 1.33570
8.2200 1.35050
8.2440 1.35460
8.3130 1.35460
8.1160 1.71280
7.9950 1.71260
7.9550 1.69930
7.4100 1.51700
7.0530 1.53900
6.7930 1.53960
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
z All Special Taxing Districts
Source: Indian River County Property Tax Collector's Office
125
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
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
2018
2019
1,843,910,442
2,304,888,053
73,492,650
73,492,650
Source: Indian River County Property Appraiser
Ratio of Taxable to Actual Value
59%
58% —
_6
58.2%
57%
57.5%
56% =
55.0%
n6./7o
55%
176
55.5%
54% —
53.5%
55.0%
—
52.6%�
53% _
52%
51%
50%
49%
2010
2011 2012
2013 2014
2015 2016 2017
2018 2019
Fiscal Year
126
Table 8 - Unaudited
Less:
Total
Total
Total
Ratio of
Tax -Exempt
Taxable
Direct Tax
Estimated
Taxable to
Property
Value
Rate
Actual Value
Actual Value
$ 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%
533,734,358
1,383,688,734
3.1514
2,378,380,703
58.2%
127
CITY OF SEBASTIAN, FLORIDA Table 9 - Unaudited
Principal Property Taxpayers
Current Year and Nine Years Ago
2019 Fiscal Year 2010 Fiscal Year
Percentage
Percentage
of Total City
of Total City
Taxable
Taxable
Taxable
Taxable
Taxpayer
Value
Rank
Value
Value
Rank
Value
Florida Power it Light (Utility/Electric)
$ 32,855,822
1
2.37 %
$ 15,809,386
1
1.38
Comcast of Florida, Inc. (Communications)
12,079,335
2
0.87
-
-
-
Wal-Mart Stores, Inc. (Retail)
9,055,048
3
0.65
13,404,610
2
1.17
Sebastian Senior Real Estate, LLC (Senior Group Home;
7,663,180
4
0.55
-
-
-
Park Place Community, LLC (Rental/Retail)
7,032,157
5
0.51
6,896,210
6
0.60
BW US 1, Inc. (Commercial)
6,135,815
6
0.44
6,946,560
5
0.60
Hartwell Groves, Inc. (Agriculture)
5,515,835
7
0.40
-
-
-
PSM Sebastian, LLC
5,274,324
8
0.38
CSGBSH Sebastian, LLC
5,207,727
9
0.38
MPA Sebastian, LLC
5,035,459
10
0.36
IPF/Sebastian LLC (Retail)
-
-
-
91743,746
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
$ 95,854,702
6.91 %
$ 83,290,304
7.25
Total Taxable Value
$1,383,688,734
$ 1,149,141,140
Source: Indian River County Property Appraiser
Concentration of 2019 Taxpayers
6.91 %
93.09%
■Top Ten Taxpayers GAll Other Taxpayers
128
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
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
94.00%
72,789
3,603,024
96.38%
2016
2017
3,943,212
3,726,976
95.00%
77,898
3,804,874
96.49%
2017
2018
3,920,640
3,703,536
94.00%
83,126
3,786,662
96.58%
2018
2019
3,974,853
3,861,686
97.00%
79,857
3,941,543
99.16%
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
o -
10
8
6
4 1
2
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Fiscal Year
129
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130
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
Capital
Primary
of Personal
Per
Year
Notes
Bonds/Notes
Bonds/Notes
Lease
Government
Income
Capita
1
1
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
254,453
3,429,453
0.0003%
142
2018
1,044,000
1,541,000
206,167
2,791,167
0.0002%
113
2019
820,000
1,164,000
156,171
2,140,171
z
85
The Infrastructure
Sales Tax and
Stormwater Utility Revenue Bonds
were refunded in 2014 with Bank Notes.
z
Information not
yet available.
Millions Primary Government Debt
80.00
60.00
40.00
20.00
4 / 1
1
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Fiscal Year
131
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
2019
2018
2017
2016
2015
$ 69,183,437
$ 63,157,289
$ 57,729,642
$ 48,340,610
$ 48,340,610
1,984,000
2,585,000
3,175,000
6,041,000
6,041,000
$ 67,199,437
$ 60,572,289
$ 54,554,642
$ 42,299,610
$ 42,299,610
2.87%
4.09%
5.50%
12.50%
12.50%
Legal Debt Margin Calculation for Fiscal Year 2019
Assessed value
$1,917,403,092
Less: Exempt property
(533,734,358)
Taxable Value
1,383,668,734
Debt limit (5% of taxable value)
69,183,437
Debt applicable to limit:
Revenue bonds/notes
1,984,000
Total net debt applicable to limit 11984,000
Legal debt margin $ 67,199,437
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, 2019.
132
Table 13 - Unaudited
Fiscal Year
2014 2013 2012 2011 2010
$ 44,250,493 $ 41,034,956 $ 43,872,903 $ 49,337,437 $ 57,457,057
7,608,000 9,914,000 11,221,000 12,246,000 13,449,000
$ 36,642,493 $ 31,120,956 $ 32,651,903 $ 37,091,437 $ 44,008,057
17.19% 24.16% 25.58% 24.82% 23.41%
133
CITY OF SEBASTIAN, FLORIDA
Pledged Revenue Coverage
For the Last Ten Fiscal Years
Recreational Facilities Improvement and Refunding Revenue Bonds, Series 2001
Debt Service
Less:
Net
Fiscal Gross
Operating
Available
Year Revenue'
Expenses'
Revenue Principal Interest Total Coverage'
2010 $ 1,341,555 $
1,129,651
$ 211,904 $ 300,000 $ 21,700 $ 321,700 0.66
2011 -
-
- - - - -
2012
2013
2014
2015
2016
2017
2018
2019
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.
134
Table 14 - Unaudited
Stormwater Utility Revenue Bonds, Series 2003
Debt Service
Gross
Revenues"
Principal
Intere
Coverage'
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
135
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'
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
11,972,663
76,059
52,243
2019
25,168
4
4
4
State
School
Unemployment
Unemployment
Enrollment Z
Rate'
Rate
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
6,186
3.2
2.7
Sources:
' Florida Research $ Economic Database (FRED). Information available for Indian River County Only.
2 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.
136
Table 15 - Unaudited
Property
Taxes
Per
Capita
181.67 $
157.50
139.28
145.18
145.68
158.88
170.38
171.43
168.62
171.88
Total
Taxable
Property
Value 3
1,149,141,140
986,748,734
877,458,060
820,699,121
885,009,868
966,812,200
1,037,687,270
1,154,592,832
1,263,145,770
1,383,668,734
137
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138
CITY OF SEBASTIAN, FLORIDA
Principal Employers
Current Year and Nine Years Ago
Table 16 - Unaudited
2019
2010
Percentage of
Percentage of
Total County
Total County
Employer
Employees
Rank
Employment
Employees
Rank
Employment
School District of Indian River County (Government)
2,121
1
3.23 %
2,080
1
3.34
Indian River Medical Center (Healthcare)
2,027
2
3.09
1,334
3
2.14
Indian River County (Government)
1,521
3
2.32
1,411
2
2.26
Publix Supermarkets(Food/Beverage)
1,380
4
2.10
960
4
1.54
Piper Aircraft, Inc. (Manufacturer)
1,000
5
1.52
850
5
1.36
Wal-Mart (Retail)
806
6
1.23
384
9
0.62
Sebastian River Medical Center (Healthcare)
595
7
0.91
600
10
0.96
John's Island (Residential/Resort)
589
8
0.90
550
7
0.88
Indian River Estates (Retirement/Life care)
486
9
0.74
442
8
0.71
Visiting Nurse Association (Healthcare)
484
10
0.74
475
11
0.76
City of Vero Beach (Government)
380
11
0.58
505
6
0.81
CVS Warehouse/Distribution (Distribution)
378
12
0.58
278
12
0.45
Saint Edward's School (Education)
290
13
0.44
112
16
0.18
Disney Vero Beach (Resort Hotel)
279
14
0.42
300
14
0.48
Flight Safety International (Education)
250
15
0.38
168
21
0.27
BEtW Quality Growers (Agricultural)
230
16
0.35
240
17
0.39
City of Sebastian (Government)
182
17
0.28
174
18
0.28
Captain Hirams (Restaurant/Resort)
174
18
0.26
161
-
-
Vero Beach Hotel and Spa
135
19
0.21
-
-
0.00
Grand Harbor Management (Developer)
125
20
0.19
295
13
0.47
Medical Data Systems (Collection Agency)
-
0.00
133
20
0.21
13,432
20.47 %
11,452
18.11
Total Average County Employees
65,666
62,329
Source: Indian River County Community Development Report.
Note: Principal employers information available for Indian
River County
Only.
139
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 2019 2018 2017 2016 2015 2014
General government
City council
2.5
2.5
2.5
2.5
City manager
2.0
2.0
2.5
2.5
City clerk
2.5
2.5
2.5
3.0
Administrative Services
6.0
6.0
6.0
4.0
Management information
5.0
5.0
2.0
2.0
Audio/visual
-
-
2.5
1.0
Human resources
-
-
-
-
Facilities maintenance
3.0
3.0
2.5
3.5
Community development
4.0
4.0
3.0
2.0
Public safety
Police
64.0
64.0
57.5
57.5
Building
7.5
7.5
5.0
5.0
Code enforcement
3.0
3.0
3.0
3.0
Transportation
Roads and drainage
9.5
9.5
11.5
11.0
Fleet management
3.5
3.5
3.5
3.5
Airport
1.5
2.0
3.0
1.0
Physical environment
Cemetery
2.0
2.0
1.5
2.0
Stormwater utility
14.5
14.5
8.0
9.0
Culture and recreation
Leisure services
21.0
21.0
18.0
19.0
Golf course
9.0
11.0
13.0
10.0
Total 160.5 163.0 147.5 141.5
Source: City of Sebastian, Florida 2010-2019 Annual Budgets
Method: Using 1.0 for each full-time employee and 0.5 for each part-time and seasonal employee.
2.5
2.5
2.0
2.0
5.0
5.0
5.5
5.5
2.0
2.0
5.0 5.0
4.0 4.0
57.0 57.0
5.0 5.0
3.0 3.0
10.0 10.0
3.5 3.5
1.0 1.0
2.0 2.0
9.0 9.0
20.0
20.0
10.0
10.0
146.5
146.5
140
Table 17 - Unaudited
Full-time Equivalent Employees as of September 30
2013 2012 2011 2010
2.5
2.5
2.5
2.5
2.0
2.0
2.0
2.5
3.0
3.0
3.0
3.0
5.0
5.0
5.0
5.0
3.0
3.0
4.0
3.0
4.0
3.0
2.0
2.0
3.0
3.0
4.0
5.0
55.5
55.0
58.0
58.0
5.0
4.0
5.0
5.0
3.0
3.0
3.0
2.5
10.0
10.0
12.0
12.0
3.5
3.5
2.5
3.5
2.0
3.0
3.0
3.0
2.0
1.0
1.0
2.0
9.0
9.0
12.0
12.0
20.0
20.0
21.0
23.0
10.0
10.0
10.5
10.5
142.5
140.0
150.5
154.5
141
CITY OF SEBASTIAN, FLORIDA
Operating Indicators By Function/Program
For the Last Ten Fiscal Years
Fiscal Year
Function
2019
2018
2017
2016
General government
Number of annexations approved
1
Acres of annexed property
1,118
-
-
Purchase orders issued
293
355
289
328
Public Safety
Police
Physical arrests
525
516
356
258
Traffic violations
4,627
3,678
3,192
3,065
Parking violations
30
55
49
73
Building
New construction permits issued '
170
167
147
191
Estimated value of construction (in millions) $
42.4 $
39.8
$ 37.2 $
43.4 $
Transportation
Road maintenance (man hours)
2,496
1,600
250
250
Asphalt for road maintenance (tons)
188
120
20
20
Physical environment
Cemetery
Cemetery internments
74
60
62
61
Grave deeds sold
59
30
29
39
Stormwater
Swales maintained (miles)
150
150
300
300
Ditches maintained (miles)
80
80
80
75
Road crossings maintained
50
50
70
68
Culture and recreation
Program participants
6,823
6,495
6,268
7,280
Number of discount cards
690
643
657
631
Number of golf course memberships
134
123
119
127
Average daily golf revenue $
3,837 $
3,100
$ 3,100 $
3,100 $
Sources: City of Sebastian Police Department, Growth Management, Public Works, Golf Course and Building Department.
' New commercial and residential only.
2015
254
287
3,725
60
142
40.6
200
10
71
43
300
75
68
7,647
653
93
3,653
142
13
13
2014
242
347
4,587
29
175
40.0 $
200
20
67
47
280
50
68
7,571
653
84
3,500 $
2013
2
4.00
233
440
4,491
80
170
35.9 $
300
30
65
38
280
50
50
8,113
710
86
3,569 $
Fiscal Year
2012
201
441
4,319
167
66
14.7 $
500
50
65
38
280
50
50
9,713
786
88
3,822 $
Table 18 - Unaudited
2011
228
500
5,941
242
51
10.2 $
700
50
54
34
280
50
40
8,649
735
94
3,787 $
2010
1
5.90
216
487
4,083
87
36
6.6
1,264
103
66
33
280
50
40
11,701
844
96
3,673
143
CITY OF SEBASTIAN, FLORIDA
Capital Asset Statistics By Function/Program
For the Last Ten Fiscal Years
Fiscal Year
Function
2019
2018
2017
2016
2015
General Government
Square footage occupied
21,500
21,500
21,500
21,500
21,500
Departmental vehicles
3
6
6
4
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
78
71
71
70
66
Building inspector vehicles
4
4
4
4
4
Transportation
Streets (miles)
156
156
156
156
156
Streetlights'
1,100
1,100
1,100
1,085
1,085
Airport vehicles
3
5
4
4
3
Public service vehicles
16
13
12
12
12
Physical environment
Public service vehicles
18
18
19
17
17
Culture and recreation
Parks vehicles
8
5
5
6
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
9
12
12
12
Golf course vehicles
Sources: City of Sebastian Administrative Services Department and Park and Recreation Division
' This number represents actual unmetered street lights in the City (source: Florida Power $ Light - January billing).
144
Table 19 - Unaudited
Fiscal Year
2014
2013
2012
2011
2010
21,500
21,500
21,500
21,500
21,500
5
6
1
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
62
61
66
67
63
3
3
3
3
3
156
156
156
156
156
1,085
1,080
1,228
1,236
1,230
1
1
1
1
1
15
17
17
19
22
10
10
9
9
15
18
18
18
18
18
2
2
2
2
2
315.01
315.01
315.01
315.01
315.01
4,859
4,859
4,859
4,859
4,859
9
12
13
14
13
1
1
1
1
1
145
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146
INTERNAL CONTROL AND COMPLIANCE
147
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148
►'- Rehmann
Rebmann Robson
5070 Highway AlA,
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 6, 2020
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, 2019, 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 6, 2020.
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
Internatlonal
CPAs & Consultants Wealth Advisors Corporate Investigators
149
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.
4444-1 rL.rn- LLC
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PIA P.,ehmann
INDEPENDENT AUDITORS'
MANAGEMENT LETTER
March 6, 2020
Honorable Mayor and
Members of City Council
City of Sebastian
Sebastian, Florida
Report on the Financial Statements
Rebmann Robson
5070 Highway AlA,
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, 2019 and have issued our report thereon dated March 6, 2020.
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 6, 2020, 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.
Rebmann is an independent member of Nexia International.
A member of
Nexia
Internatlonal
CPAs & Consultants Wealth Advisors Corporate Investigators
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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 General, requires that we communicate any
recommendations to improve financial management. In connection with our audit, we did not have any
such recommendations.
Special District Component Units
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.
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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.
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