HomeMy WebLinkAbout2019 - 2020CITY OF SEBASTIAN, FLORIDA
CITY OF
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HOME OF PELICAN ISLAND
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended September 30, 2020
CITY COUNCIL
Ed Dodd Jim Hill
Mayor Vice -Mayor
Fred Jones
Council Member
Bob McPartlan Christopher Nunn
Council Member Council Member
Prepared by: Administrative Services Department
CITY OF SEBASTIAN, FLORIDA
Table of Contents
Page
INTRODUCTORY SECTION 1
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
30
Statement of Activities
31
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
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
Page
Required Supplementary Information:
Single -employer Pension Trust Fund:
Schedule of Changes in Net Pension Liability and Related Ratios
94
Schedule of Investment Returns
97
Schedule of Contributions
98
Coastal Florida Public Employees Association Pension Plan:
Schedule of Employer Contributions
101
Combining and Individual Fund Financial Statements and Schedules:
Nonmajor Governmental Funds:
Combining Balance Sheet
104
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances
106
Schedule of Revenues, Expenditures and Changes in Fund
Balance — Budget and Actual:
Local Option Gas Tax Special Revenue Fund
108
Parking In -Lieu -Of Special Revenue Fund
109
Recreation Impact Fee Special Revenue Fund
110
Law Enforcement Forfeiture Special Revenue Fund
111
Stormwater Utility Revenue Bonds Debt Service Fund
112
Agency Fund:
Combining Statement of Changes in Assets and Liabilities 114
Other:
Capital Assets used in the Operations of Governmental Funds:
Comparative Schedule by Source 116
Schedule by Function and Activity 117
Schedule of Changes by Function and Activity 118
CITY OF SEBASTIAN, FLORIDA
Table of Contents
Page
STATISTICAL SECTION (UNAUDITED)
Statistical Section Table of Contents
121
Financial Trends Information
Net Position by Component
122
Changes in Net Position
124
Fund Balances, Governmental Funds
128
Changes in Fund Balances, Governmental Funds
130
Program Revenues by Function/Program
132
Revenue Capacity Information
Tax Revenues by Source
134
Direct and Overlapping Property Tax Rates
135
Actual and Estimated Value of Taxable Property
136
Principal Property Taxpayers
138
Property Tax Levies and Collections
139
Debt Capacity Information
Ratios of Outstanding Debt by Type
140
Legal Debt Margin Information
142
Pledged Revenue Coverage
144
Demographic and Economic Information
Demographic and Economic Statistics
146
Principal Employers
148
Operating Information
Full -Time Equivalent City Government Employees by Function/Program
150
Operating Indicators by Function/Program
152
Capital Asset Statistics by Function/Program
154
Internal Control and Compliance
Independent Auditors' Report on Internal Control over Financial
Reporting and on Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance with Government
Auditing Standards 159
Independent Auditors' Management Letter 161
Independent Accountants' Report 165
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INTRODUCTORY SECTION
CITY OF SEBASTIAN, FLORIDA
CITY OFFICIALS
For the Year Ended September 30, 2020
Paul Carlisle
City Manager
Manny Anon, Jr., Esq.
City Attorney
DEPARTMENT HEADS
Daniel Acosta
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 Director/CFO
Kenneth Griffin
City Engineer
Greg Gardner
Golf Course Director
Brian Benton
Leisure Services Director
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CITY OF
SEELA6S.
,
HOME OF PELICAN ISLAND
February 23, 2021
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, 2020. 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, 2020.
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 require 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 unmodified ("clean') opinion on the City of Sebastian's financial statements for the year
ended September 30, 2020. 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 25,658 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. Annexation of an additional 1.7 square miles of undeveloped property was
approved on August 28, 2019. As a result, the City now covers approximately 16.3 square miles.
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The City is a Florida municipal corporation with a five -member City Council. Council members serve a two-
year term. Annual elections are held on the first Tuesday following the first Monday in November and two
members are elected in even -numbered years and three members are elected in odd -numbered years.
Elections are non -partisan and at -large. Mayor and Vice Mayor are elected from among the members of
every newly seated Council at a Special meeting following the election each year. The City has operated
under a Council -City Manager form of government since 1989.
The City provides a wide range of services including general government administration, police
protection, the construction and maintenance of local roads, public works, recreational and cultural
activities, a golf course, a general aviation airport, and a building department to enforce building 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 may be done administratively on the authority of the City Manager. Total fund
appropriation changes and use of contingency appropriations must be approved by the City Council.
Local Economy
The region (which includes the City of Sebastian and the surrounding unincorporated area within the
same county) has a fluctuating labor force depending on agricultural demand and is a strong retirement
community. Although the labor force fluctuates, unemployment in the region was showing good
improvement in the last few years, until measures to control the COVID-19 virus restricted the normal
operations of businesses. As of September 2020, the Florida Research & Economic Database reported an
unemployment rate of 5.9%, which corresponds with increases experienced at the state and national
levels.
The largest major industry sector was Health Care and Social Assistance with 20.6% of the employment,
followed by Retail with 17.5% of the employment and Accommodations/Food Services with 11.7% of the
employment. According to the U.S. Census Bureau, 89% of the population age 25 or older are high school
graduates and 29 % hold a bachelor's degree or higher. The area median age for 2019 was 53.5 and the
median household income for 2019 was $61,173, as reported by the U.S. Census Bureau.
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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. 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.
Long-term Financial Planning
The voters of Indian River County in November 2003 extended the Infrastructure Sales Surtax in the
amount of $.01 per $1.00 sale for an additional fifteen years and seven months beginning in January
2004. In November 2016, the voters once again extended the Surtax for another fifteen year period. This
Infrastructure Sales Surtax is essential in providing for the City's emergency vehicle and capital
improvement needs. In addition, the City has funded a number of other capital projects with impact fees
and has actively pursued grant funding for some major transportation and environmental improvements.
It has also employed the use of a Community Redevelopment Agency that is funded by means of tax -
increment financing.
The millage was levied at a reduced rate of 2.9399 for fiscal year 2020. 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 178 permits being issued for new construction in fiscal year 2020 with a cost of $46.9 million
compared to a total of 170 permits being issued for new construction in fiscal year 2019 with a cost of
$42.4 million. In reviewing these numbers, new commercial was 1 permit costing $.5 million in 2019 and
3 permits costing $5.4 million in 2020, with new residential constructions changing from 169 permits
costing $41.8 million in 2019 to 175 permits costing $41.5 in 2020. These comparable amounts support
the premise that favorable conditions still exist for the local construction industry.
At year end, General Fund unassigned fund balance is $5,419,259 and above the $5 million minimum
target. The unassigned fund balance was 42.1% of the general fund expenditures and transfers out. 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 2021 was balanced without a reduction of fund balances.
k,
Major Initiatives
Administration
The City continues to pursue the remaining unpaid reimbursements from Federal Emergency
Management Agency (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 from Hurricane Irma was
received in 2020. In October of 2019, about $32,000 of expenditures were then experienced as a result of
Hurricane Dorian and the reimbursement process for that event was initiated and entirely completed
during the 2020 fiscal year. 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.
The City has continued to make use of advanced technology by upgrading computer servers, improving
the network and acquiring better audio visual equipment. With the COVID-19 Pandemic requiring
stringent measures to safeguard the public and City employees while conducting business and holding
open meetings, additional investments in technology were aggressively pursued. These included
equipment to enable employees to work virtually at home and the ability for the public to participate
virtually during public meetings
Also due to the COVID-19 Pandemic, the City attempted to assist small businesses which suffered a
significant loss of income with a grant program made possible by reimbursements available from the
CARES Act. Those grants were followed with rental and mortgage assistance program to help those
having experienced financial hardships due to the COVID-19 Pandemic.
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 how stormwater fees are being
spent. Special committees are working to establish best management practices that will minimize
chemical spraying and still keep the canals and drainage systems clear of vegetative growth and
functioning properly. Preliminary approval was received for a FEMA grant to address drainage
improvements that are needed in the Stonecrop area of the City. Grant funding is also being pursued to
prepare a stormwater master plan to guide future decision making.
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.
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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 (FOOT) and
Federal Aviation Administration (FAA) to develop the necessary infrastructure. Approval was secured for
the construction of Hanger "D" with grant funds matched by funds from discretionary sales taxes. In
partnership with the County, grant funding has also been obtained to provide sewer service to tenants on
the west side of the Airport. This endeavor was initiated in concert with the design of a new Public
Facilities Garage and Staging Facility.
Public Safety
The Building Department continued measures to effectively operate as the City Fire Marshal which has
insured more timely response and review of development plans. Construction activity has continued to be
strong and is steadily increasing the Building Fund's carryover balance. A recent State mandate requires
excess carryover balances from permit fees to be refunded. The City has recorded a liability for the excess
but is unable to make such refunds until such time as further guidance is prescribed o how they must be
determined. 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 Riverfront 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. Particular attention was given this year to
acquiring equipment to keep the public safe while participating at events being held during the COVID-19
Pandemic.
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FINAL DRAFT
02/18/2021
Page 12 of 169
Awards and Acknowledgements
The 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, 2019. 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 Carlisle
City Manager
lc�e_._ �Pj
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 DISPATCH AIRPORT
ACCOUNTING
CONTRACTS & CODE
PROCUREMENT ENFORCEMENT
CITY OF SEBASTIAN, FLORIDA
Organizational Chart
Fiscal Year 2020/2021
CITIZENS OF
SEBASTIAN
CITY COUNCIL
CITY
MANAGER
BOARDS &
COMMISSIONS
CITY
ATTORNEY
0j
Govemment Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
presented to
City of Sebastian
Florida
For its Comprehensive Annual
Financial Deport
For the Fiscal Year Ended
September 30, 2019
Execwive Director)CEO
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FINANCIAL SECTION
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12
Rehmann
INDEPENDENT AUDITORS' REPORT
February 23, 2021
Honorable Mayor and
Members of City Council
City of Sebastian, Florida
Report on the Financial Statements
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, 2020, 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.
A ber of
Rehmann is an independent member of Nexia International. �� mem
Nexia
International
13
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.
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, 2020, 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.
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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.
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 February 23,
2021, 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.
—, 4��4L4),- 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 (MD&A) is designed to focus on the current years activities, resulting changes
and currently known facts, please read it in conjunction with the Transmittal Letter 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 2020 by $64,906,419 (net position). Of this amount, $86,420 (unrestricted net position) may be
used to meet the City's on -going obligations to citizens and creditors.
The City's total net position from governmental activities increased by $1,547,013 and from business -type activities
decreased by $1,095,088. Net position was increased in governmental activities, primarily as a result of revenues being
accumulated for major capital projects that are currently being designed. Net position of business -type activities
decreased with the recoding of a liability for rebating permit fees which the state has mandated.
Governmental funds reported a combined ending fund balance of $16,483,342, an increase of $849,922 from the prior
year. Almost 33% of this amount, $5,419,259 is unassigned and available for spending.
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 a decrease in the deficit in unrestricted net position resulting from the
large investments made in capital assets using grant funding. The Building Fund reported a decrease in unrestricted net
position, as a result of continued levels of construction activity. In total, the City's enterprise funds reported a decrease
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.
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, Riverfront Redevelopment Fund, Stormwater Utility Fund, and Discretionary Sales Tax 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.
19
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 $64,906,419 at
the close of the most recent fiscal year.
Net Position
Governmental Activities
Business -type
Activities
Total
2020
2019
2020
2019
2020
2019
Current and other assets $
17,592,698
$ 16,404,210
$ 516,175 $
(86,152)
$ 18,108,873 $
16,318,058
Capital assets, net
39,292,832
39,064,967
16,367,501
17,152,022
55,660,333
56,216,989
Total assets
56,885,530
55,469,177
16,883,676
17,065,870
73,769,206
72,535,047
Deferred outflows of
resources
1,361,274
1,123,453
-
-
1,361,274
1,123,453
Long-term debt outstanding
2,987,676
3,512,262
340,409
376,018
3,328,085
3,888,280
Other liabilities
5,173,737
4,876,451
1,297,432
348,929
6,471,169
5,225,380
Total liabilities
8,161,413
8,388,713
1,637,841
724,947
9,799,254
9,113,660
Deferred inflows of
resources
424,807
90,346
-
-
424,807
90,346
Net position
Net investment in
capital assets
Restricted
Unrestricted (deficit)
Total net position
37,919,832 37,080,967 16,263,098 16,995,851 54,182,930 54,076,818
10,637,069 8,976,174 - - 10,637,069 8,976,174
1,103,683 2,056,430 (1,017,263) (654,928) 86,420 1,401,502
$ 49,660,584 $ 48,113,571 $ 15,245,835 $ 16,340,923 $ 64,906,419 $ 64,454,494
A substantial portion of the City's net position, $54,182,930 (83.5 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 $10,637,069 (16.4 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 $86,420 (0.1
percent) to meet its ongoing obligations to citizens and creditors.
20
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
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. Operating grants for governmental activities increased
due to reimbursements for small business grants and other expenditures to contend with the COVID-19 pandemic that were
eligible from the CARES Act. Changes in capital grants and intergovernmental revenues resulted from discretionary sales
taxes received from the State which are restricted to capital expenditures on infrastructure. Capital grants in the business -
type activities were less because of the large amount of proceeds for the construction of taxiway C at the airport in 2019.
Change in Net Position
Governmental Activities Business -type Activities Total
2020 2019 2020 2019 2020 2019
Revenues
Program revenues:
Charges for services
$ 2,894,630
$ 2,896,075 $
3,015,812 $
2,801,449
$ 5,910,442
$ 5,697,524
Operating grants
1,726,719
803,092
-
46,771
1,726,719
849,863
Capital grants
3,647,329
251,088
471,888
2,670,116
4,119,217
2,921,204
General revenues:
Property taxes
4,270,497
4,325,759
-
-
4,270,497
4,325,759
Other taxes
2,940,406
2,882,460
2,940,406
2,882,460
Intergovernmental
2,541,474
7,109,496
2,541,474
7,109,496
Other
1,879,836
2,000,371
14,645
8,499
1,894,481
2,008,870
Total revenues
19,900,891
20,268,341
3,502,345
5,526,835
23,403,236
25,795,176
Expenses
General government
5,071,184
3,970,541
-
-
5,071,184
3,970,541
Public safety
6,856,836
6,613,707
6,856,836
6,613,707
Physical environment
2,534,320
3,106,764
2,534,320
3,106,764
Transportation
2,037,807
2,022,117
2,037,807
2,022,117
Economic environment
315,985
402,986
315,985
402,986
Cultural and recreation
1,402,691
1,434,296
1,402,691
1,434,296
Interest and fiscal
charges
28,711
38,539
28,711
38,539
Golf course
-
-
1,551,926
1,533,749
1,551,926
1,533,749
Airport
1,282,084
1,336,180
1,282,084
1,336,180
Building
1,869,767
715,846
1,869,767
715,846
Total expenses
18,247,534
17,588,950
4,703,777
3,585,775
22,951,311
21,174,725
Change in net position,
before transfers
1,653,357
2,679,391
(1,201,432)
1,941,060
451,925
4,620,451
Transfers
(106,344)
(204,496)
106,344
204,496
-
-
Change in net position 1,547,013 2,474,895 (1,095,088) 2,145,556 451,925 4,620,451
Net position, beginning
of year 48,113,571 45,638,676 16,340,923 14,195,367 64,454,494 59,834,043
Net position, end of year $ 49,660,584 $ 48,113,571 $ 15,245,835 $ 16,340,923 $ 64,906,419 $ 64,454,494
The City's net position increased by $451,925 during the current fiscal year. The primary reason for the increase of
$1,547,013 in net position for governmental activities is because of the large amount of revenue being accumulated of the
future replacement of the public works facility and major stormwater system improvements in the Stonecrop area of the City.
For business -type activities, the $1,095,088 decrease in net position is attributable to recording a liability in the Building Fund
for a State mandate to rebate permit fees in excess of its average operating budget.
21
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
Governmental Activities. Governmental activities increased the City's net position by $1,547,013. Key elements of this
increase are as follows:
Total assets increased by $1,416,353 due to accumulating revenues for future projects
Total liabilities decreased by $227,300 from amortized payments on long-term debt.
Deferred outflows and deferred inflows of resources from the Police Officer's Pension Plan reduced the City's net position
by $96,640.
8,000,000
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
■ Expenses
N P—ram Revenues
General Public safety Physical
government environment
In
Othertaxes
21%
L--,=
Transportation Economic
environment
Revenues by Source - Governmental Activities
21%
Other
L. '
Cultural and Interest and
recreation fiscal charges
grants
its
22
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
Business -type Activities. Business -type activities decreased the City's net position by $1,095,088. The key elements of this
decrease are as follows:
Increase in current and other assets of $602,327 resulting from increased permitting and rentals.
Decrease in net capital assets of $784,521 mainly due to depreciation on Airport infrastructure improvements.
Increase in total liabilities of $912,894 from recording the State mandated requirements on permit fee rebates.
Expenses and Program Revenues - Business -type Activities
2,000,000 ■ Expenses
1,800,000 ■ Program Revenues
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
Golf course Airport Building
Revenues by Source - Business -type Activities
Capital o ntc
or services
86%
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
$16,483,342, an increase of $849,922 from the prior year. Of this amount, 33 percent ($5,419,259) 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 $5,419,259 while total fund balance amounted to $5,703,001. 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 42.1 percent of total General Fund expenditures, while total fund balance represents 44.3 percent of
that same amount.
The fund balance of the City's General Fund decreased by $496,060 during the current fiscal year. Given that the fund balance
increased by $825,680 the prior fiscal year, there was actually a change in net position of $1,321,740. Key factors in this
change are as follows:
Property tax revenues decreased by $74,286.
Charges for services increased by $115,603.
Intergovernmental decreased by $600,146
Public utility taxes increased by $57,946.
Franchise fees decreased by $26,895.
All other revenues decreased by $30,031.
Transfers in from other funds decreased by $23,928.
Transfers out to other funds decreased by $18,553.
Expenditures increased by $758,556.
The General Fund originally budgeted for no changes in the fund balance. The actual decrease in fund balance resulted from
the following significant variances:
Property tax revenues were slightly less than budgeted with just over 95% of the tax roll being collected. 96% of the tax
roll is budgeted as being collected, based on experience. No less than 95% must be budgeted per Florida statutes.
Intergovernmental revenues were less than budgeted due to an unexpected and severe reduction in State shared
revenues. This was explained as being caused by significant decreases in the amounts of sales tax receipts that fund the
revenue sharing program. Due to mandatory closures and restrictions on businesses, there were extreme declines in
those sales.
General Fund expenditures had an overall favorable budgetary variance of $651,794, which was a 4.8% difference from
the amended budget total.
24
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
The Riverfront Redevelopment Fund ended the year with $478,660 in fund balance, an increase of $104,556 from the prior
year. The increase is due to fewer expenditures on economic development and transfers out than expected. This was the
result of delays in design work for the Fisherman's Landing improvements and agreement on a cost sharing plan with the
Fisherman's Landing Sebastian, Inc. organization to share in a portion of the cost.
The Stormwater Utility Fund ended the year with a fund balance of $1,375,749, an increase of $486,036 from the prior year.
The increase is due to funding the expected local matching requirement on a grant to address needed improvements to the
Stonecrop drainage area that is anticipated in the coming year.
The Discretionary Sales Tax Fund has a total fund balance $6,785,087, an increase from the $5,584,628 total fund balance of
the prior year. The increase is the result of monies that have been accumulated for the construction of a new public facilities
compound. The size and complexity of this project has required an extraordinary time to design.
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 $209,972, while the
unrestricted net position (deficit) amounted to ($1,711,345). The unrestricted net position (deficit) changed from ($1,838,094)
to ($1,711,345). This is mainly due to added revenue as a result of favorable weather and due to surrounding golf courses
closing temporarily because of the COVID-19 Pandemic.
The total net position of the airport fund at the end of the fiscal year amounted to $14,546,116, while the unrestricted net
position (deficit) amounted to ($194,744). Net position has decreased by $145,179 while the unrestricted net position (deficit)
has changed from ($606,523) to ($194,744). The improvement in the unrestricted net position (deficit) is mainly due to
management applying increases in rental receipts toward reducing current liabilities and advances from other funds.
The total net position of the building fund at the end of the fiscal year amounted to $909,691. This is a decrease of $916,277
from the prior year, which was primarily due to the recognition of rebates payable and state mandated rebates expense of
$1,107,442 to comply with Florida statute 553.80. The statute does not allow a local government to carry forward an amount
exceeding the average of its operating budget for the previous four fiscal years.
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
& facilities R&R Reserve. The third includes project transfers to cancel or close out capital projects or reallocate funds
between them to address budget shortages. The fourth includes transfers to address budget shortages in operating budget
accounts resulting from properly classifying charges or for unanticipated expenditures. The main components of the increases
are as follows:
Amendments
$123,874 to allocate Community Development Block Grant funding to projected expenditures.
85,264 to allocate General Fund Reserves to cover prior year purchases not completed by end of year.
34,555 to allocate Discretionary Sales Tax Reserves to increase budget for City Hall generator.
34,412 to allocate General Fund Reserves to retain an attorney specializing in annexation laws.
41,035 to allocate General Fund Reserves for the employment of a full-time City Attorney.
25
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
Amendments (Continued)
$25,622
to allocate Discretionary Sales Tax Reserves to match Airport grants for Taxilane and Taxiway
projects.
14,850
to allocate Building Fund Reserves to complete the Floodplain Management Audit.
1,219
to allocate a contribution from the School District to buy gun safes at the Elementary Schools.
15,234
to allocate Justice Assistance Grants from FDLE to purchase Police Department equipment.
17,500
to allocate donations from the Greer Trust to cover medical bills for the Police K-9s and to replace
a K-9.
19,000
to allocate insurance proceeds to repairing pavement damaged by a contractor.
500
to allocate a donation from the Art Club to help cover the cost of new carpeting.
85,000
to allocate Recreation Impact Fee Reserves to move dugouts and fencing projects to the current
year.
74,778
to allocate CARES ACT funding in concert with the previously established CDBG Grant Program.
41,604
to allocate General Fund Reserves to pay the Supervisor of Elections to conduct the Recall Vote.
4,964
to allocate Airport Contingency to the replacement of Airport Administration Building air
conditioners.
2,499
to allocate Sebastian River Area Little League donation to the Batting Cages project.
13,442
to allocate a payment from the Insurance Company for lightning damages to City property.
General Fund Equipment & Facilities Renewal & Replacement (R&R) Reserve Allocations
$36,580 to use R&R Reserve to replace Leisure Services mower.
912 to use R&R Reserve to replace City Council Chamber sound mixer unit.
12,000 to use R&R Reserve to repair City Hall and Police Department lightning protection system.
10,505 to use R&R Reserve to replace sewage pumps for the Splash Pad restrooms.
1,530 to use R&R Reserve to complete updates to street signs in City Zone #2.
4,691 to use R&R Reserve to replace air conditioner in Security Officer's Trailer at the Airport.
27,160 to use R&R Reserve to replace air conditioner systems in the MIS area of City Hall.
19,007 to use R&R Reserve to replace a Leisure Services athletic field groomer machine.
7,968 to use R&R Reserve to replace an air conditioner at the Community Center.
45,805 to use R&R Reserve to replace a vehicle in the Police Detective offices.
11,827 to use R&R Reserve to replace an evaporator coil for a Police Department air conditioner.
Project Budget Transfers
$30,000 adjustment to defer Recreation Impact Fee playground improvements until next year.
78,623 adjustment to combine Riverfront CRA and Local Option Gas Tax funding for Riverview sidewalks
25,782 adjustment to record approval to do mechanical vegetation clearing of aquatic and wetland
Operating Budget Transfers
$7,218
adjustment within Leisure Services for Bark Park shade structure and Community Center air
conditioner.
1,750
adjustments within Roads Division to cover cost of the Public Works Director's vehicle.
748
adjustments within Golf Course for overrun in grounds maintenance expenses and cost to trim
palm trees.
37,550
adjustments within Salary accounts for the Holiday bonuses and quarterly incentive awards.
8,000
adjustment within Leisure Services accounts for cost of cleaning/buffing Community Center
floors.
1,576
adjustment within Community Development for items needed for Sustainable Sebastian Program.
57,115
adjustment within City Attorney accounts to move contractual services budget to City Attorney
salaries.
1,950
adjustment within Community Development accounts to cover ArcGIS Pro training class.
10,780
adjustment within Non -departmental accounts to cover cost of automated phone record retrieval
system.
7,330
adjustment within Building Fund accounts to demolish unsafe structure as ordered by Special
Magistrate.
3,930
adjustment within Airport accounts to cover air conditioner repairs at the Airport Terminal.
26
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
Operating Budget Transfers (Concluded)
$3,861 adjustment within Fleet Division accounts to replace an air conditioner at the City Garage.
19,488 adjustment within Stormwater Fund accounts to rent equipment while excavator was out of
service.
2,000 adjustment within Airport accounts to repair the glide path landing lights.
During the fiscal year, total General Fund actual expenditures were $651,794 less than final amended budgetary estimates.
The overall variance on revenues and expenditures resulted in an decrease of $496,060 to existing fund balances. This was
primarily due to an unexpected and severe reduction in State shared revenues. Those payments are dependent on State sales
tax collections, which fell dramatically as a result of mandated shutdowns and limitations places on businesses during the
COVID-19 Pandemic.
Capital Asset and Debt Administration
Capital Assets. At the end of fiscal year 2020, the City had $55,660,333 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 decrease (including additions and deductions) of $556,656, or 1.0%, 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
2020
2019
2020
2019
2020
2019
Land
$ 9,123,041
$ 9,123,041
$ 9,060 $
9,060 $
9,132,101 $
9,132,101
Buildings
7,429,990
7,762,948
7,353,716
7,638,387
14,783,706
15,401,335
Improvements
2,857,412
2,510,563
1,172,099
1,289,371
4,029,511
3,799,934
Equipment
2,948,383
2,472,410
340,826
480,781
3,289,209
2,953,191
Infrastructure
16,526,722
16,990,037
7,217,300
5,253,616
23,744,022
22,243,653
Construction in progress
407,284
205,968
274,500
2,480,807
681,784
2,686,775
Total capital assets, net
$ 39,292,832
$ 39,064,967
$ 16,367,501 $
17,152,022 $
55,660,333 $
56,216,989
Governmental activities had the following major changes during the fiscal year:
A decrease in Buildings mainly due to depreciation.
An increase in Improvements with the Pickleball facility.
An increase in Equipment due to replacing old units.
A decrease in Infrastructure mainly due to depreciation.
An increase in Construction in progress with the expenditures for design of the public works compound.
Business -type activities had the following major changes during the fiscal year:
A decrease in Buildings mainly due to depreciation.
A decrease in Improvements mainly due to depreciation.
A decrease in Equipment mainly due to depreciation.
An increase in Infrastructure due to Airport taxiway improvements.
Long-term Debt. At the end of the current fiscal year, the City had total long-term debt outstanding of $3,328,085. Of this
amount, $1,373,000 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
2020
2019
2020 2019
2020
2019
Notes payable
$ 1,373,000
$ 1,984,000
$ - $ -
$ 1,373,000 $
1,984,000
Compensated absences
1,523,476
1,437,062
236,006 219,847
1,759,482
1,656,909
Pollution remediation
91,200
91,200
- -
91,200
91,200
Capital lease
-
-
104,403 156,171
104,403
156,171
Total
$ 2,987,676
$ 3,512,262
$ 340,409 $ 376,018
$ 3,328,085 $
3,888,280
The City's total debt decreased by $560,195 (14.4%) 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 2021 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 2020 was 5.9 percent and less than the higher levels
of previous years, which is a positive sign and analogous to the economic pattern existing throughout the state and nation.
The City experienced a 7.18% overall increase in property values for 2021. The millage of 3.1514 was levied for taxes to be
recorded in fiscal year 2021 that will essentially offset a lower projection of State revenue sharing payments.
The Golf Course reported more revenues from fees in 2020, partially 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. The Golf Course also
benefited from favorable weather and more customers when competing Golf Courses in the area temporarily closed because
of the COVID-19 Pandemic.
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.
Although a good level of revenues from building permit fees continued, the Building Enterprise Fund reported a reduction in
net position due to recording a liability for rebating permit fees in accordance with a State mandate. There are signs that
steady activity in the local housing market is continuing, which is encouraging.
The COVID-19 Pandemic has resulted in many unknowns when considering the long-term future economic outlook for the
City. As of the date of these financial statements, the outbreak has negatively impacted economic markets, business
operations and the provision of many governmental services. Management anticipates the pandemic will have a negative
impact on the City with respect to financial operations and investment results; however, the extent of the impact is uncertain
and cannot be reasonably predicted at this time.
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.
BASIC FINANCIAL STATEMENTS
29
CITY OF SEBASTIAN, FLORIDA
Statement of Net Position
September 30, 2020
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
$ 10,379,644 $ 1,132,288 $ 11,511,932
112,710
-
112,710
3,160,183
199,362
3,359,545
983,147
-
983,147
1,579,803
324,312
1,904,115
1,177,891
(1,177,891)
-
164,483
22,941
187,424
34,837
13,561
48,398
-
1,602
1,602
9,530,325
283,560
9,813,885
29,762,507
16, 083, 941
45, 846, 448
56,885,530 16,883,676 73,769,206
1,361,274 1,361,274
1,067,086
1,211,144
2,278,230
8,331
-
8,331
42,270
86,288
128,558
769,866
53,602
823,468
2,217,810
286,807
2,504,617
4,056,050
-
4,056,050
8,161,413
1,637,841
9,799,254
424,807 424,807
37,919,832 16,263,098 54,182,930
171,614 171,614
1,068,820 1,068,820
7,173,490
7,173,490
478,660
478,660
1,622,921
1,622,921
121,564
121,564
1,103,683
(1,017,263) 86,420
$ 49,660,584 $ 15,245,835 $ 64,906,419
The accompanying notes are an integral part of these basic financial statements.
30
CITY OF SEBASTIAN, FLORIDA
Statement of Activities
For the Year Ended September 30, 2020
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
$ 5,071,184 $
6,856,836
2,534,320
2,037,807
315,985
1,402,691
28,711
18,247,534
Program Revenues
Operating Capital
Charges Grants and Grants and
for Services Contributions Contributions
684,938 $
130,502
2,037,874
41,316
2,894,630
594,995 $ 3,469,568 $
234,973 33,886
896,751
143,875
1,726,719 3,647,329
Net
(Expense)
Revenue
(321,683)
(6,457,475)
(496,446)
(1,141,056)
(315,985)
(1,217,500)
(28,711)
(9,978,856)
1,551,926 1,525,184 - (26,742)
1,282,084 552,789 471,888 (257,407)
1,869,767 937,839 - (931,928)
4,703,777 3,015,812 - 471,888 (1,216,077)
$ 22,951,311 $ 5,910,442 $ 1,726,719 $ 4,119,217 $ (11,194,933)
continued...
31
CITY OF SEBASTIAN, FLORIDA
Statement of Activities
For the Year Ended September 30, 2020
Changes in net position
Net revenue (expense)
General revenues:
Property taxes, levied for general purposes
Public utility taxes
Franchise fees
Intergovernmental - unrestricted
Interest earnings
Gain on sale of capital assets
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
$ (9,978,856) $ (1,216,077) $ (11,194,933)
4,270,497
-
4,270,497
2,940,406
-
2,940,406
1,316,849
-
1,316,849
2,541,474
-
2,541,474
180,988
10,377
191,365
-
4,268
4,268
381,999
-
381,999
(106,344)
106,344
-
11,525,869
120,989
11,646,858
1,547,013
(1,095,088)
451,925
48,113,571
16,340,923
64,454,494
$ 49,660,584
$ 15,245,835
$ 64,906,419
concluded
The accompanying notes are an integral part of these basic financial statements.
32
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33
CITY OF SEBASTIAN, FLORIDA
Balance Sheet
Governmental Funds
September 30, 2020
Riverfront
Stormwater
Discretionary
General
Redevelopment
Utility
Sales Tax
Assets
Cash and cash equivalents
$
3,537,104
$
383,223
$
1,298,081
$
4,697,775
Investments
1,409,366
95,638
327,042
1,204,285
Accounts receivable
393,423
-
-
-
Due from other funds
650,000
-
-
-
Due from other governments
331,231
-
4
355,136
Inventories
34,837
-
-
-
Prepaid items
147,966
-
16,517
-
Advance to other funds
-
-
-
527,891
Total assets
$
6,503,927
$
478,861
$
1,641,644
$
6,785,087
Liabilities
Negative equity in pooled cash
$
-
$
-
$
-
$
-
Accounts payable and accrued liabilities
506,832
201
265,895
Due to other governments
251,824
-
-
Unearned revenue
42,270
-
-
Total liabilities
800,926
201
265,895
-
Fund balances
Nonspendable
182,803
-
16,517
-
Restricted
88,782
478,660
1,359,232
6,785,087
Committed
-
-
-
-
Assigned
12,157
Unassigned
5,419,259
-
-
-
Total fund balances
5,703,001
478,660
1,375,749
6,785,087
Total liabilities and fund balances
$
6,503,927
$
478,861
$
1,641,644
$
6,785,087
The accompanying notes are an integral part of these basic financial statements.
34
Nonmajor Total
Governmental Governmental
Funds Funds
$ 979,472
1,106,999
500,009
$ 10,895,655
4,143, 330
393,423
650,000
1,186, 380
34,837
164,483
527,891
$ 2,586,480 $ 17,995,999
$ 403,301 $ 403,301
42,334 815,262
- 251,824
42,270
445,635 1,512,657
1,068,820 1,268,140
848,302 9,560,063
223,723 223,723
- 12,157
5,419,259
2,140,845 16,483,342
$ 2,586,480 $ 17,995,999
35
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36
CITY OF SEBASTIAN, FLORIDA
Reconciliation
Fund Balances for Governmental Funds
to Net Position of Governmental Activities
September 30, 2020
Fund balances - total governmental funds
Amounts reported for governmental activities in the statement of net position are
different because:
Capital assets used in governmental activities are not financial resources,
and therefore are not reported in the funds.
Capital assets not being depreciated
Capital assets being depreciated, net
Certain liabilities, such as notes payable, are not due and payable
in the current period, and therefore are not reported in the funds.
Notes payable
Compensated absences
Pollution remediation liability
Accrued interest on long-term debt
Certain pension -related amounts, such as the net pension liability and deferred amounts
are not due and payable in the current period or do not represent current financial
resources and therefore are not reported in the funds.
Net pension liability
Deferred outflows related to the net pension liability
Deferred inflows related to the net pension liability
Net position of governmental activities
The accompanying notes are an integral part of these basic financial statements.
$ 16,483,342
9,530,325
29,762,507
(1,373,000)
(1,523,476)
(91,200)
(8,331)
(4,056,050)
1,361,274
(424,807)
$ 49,660,584
37
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2020
Riverfront
Stormwater
Discretionary
General
Redevelopment
Utility
Sales Tax
Revenues
Taxes:
Property
$ 3,867,257
$ 403,240
$ -
$
Public utility
2,940,406
-
Franchise fees
1,316,849
Licenses and permits
150,240
-
-
Intergovernmental
3,013,722
3,469,568
Impact fees
-
-
Chargesforservices
663,702
1,912,151
Fines
53,164
-
-
-
Investment earnings
68,484
5,082
19,029
68,127
Other revenues
303,439
36,000
38,250
-
Contributions and donations
14,129
-
-
-
Total revenues
12,391,392
444,322
1,969,430
3,537,695
Expenditures
Current:
General government
3,942,878
1,396
-
-
Public safety
6,269,387
-
-
-
Physical environment
177,737
-
1,267,438
Transportation
1,123,860
-
-
-
Economic environment
-
300,498
15,487
Culture and recreation
955,164
-
-
Debt service:
Principal
-
-
Interest and fiscal charges
-
-
Capital outlay
413,735
-
186,937
-
Total expenditures
12,882,761
301,894
1,454,375
15,487
Revenues over (under) expenditures
(491,369)
142,428
515,055
3,522,208
Other financing sources (uses)
Transfers in
-
-
-
Transfers out
(4,691)
(37,872)
(29,019)
(2,321,749)
Total other financing sources (uses)
(4,691)
(37,872)
(29,019)
(2,321,749)
Net changes in fund balances
(496,060)
104,556
486,036
1,200,459
Fund balances, beginning of year
6,199,061
374,104
889,713
5,584,628
Fund balances, end of year
$ 5,703,001
$ 478,660
$ 1,375,749
$ 6,785,087
The accompanying notes are an integral part of these basic financial statements.
9V
Nonmajor Total
Governmental Governmental
Funds Funds
$ $
4,270,497
2,940,406
1,316,849
150,240
1,255,729
7,739,019
143,875
143,875
115,240
2,691,093
133
53,297
20,266
180,988
4,310
381,999
18,499
32,628
1,558,052 19,900,891
554,053
4,498,327
6,072
6,275,459
188,260
1,633,435
5,400
1,129, 260
-
315,985
955,164
611,000 611,000
35,023 35,023
2,890,300 3,490,972
4,290,108 18,944,625
(2,732,056) 956,266
3,280,101 3,280,101
(993,114) (3,386,445)
2,286,987 (106,344)
(445,069) 849,922
2,585,914 15,633,420
$ 2,140,845 $ 16,483,342
39
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.s
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, 2020
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense.
Capital assets purchased/constructed
Depreciation expense
Loss on disposal of capital assets
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
Some expenses reported in the statement of activities do not require the use of
current financial resources and therefore are not reported as expenditures in
governmental funds.
Change in accrued interest payable on long-term debt
Change in the accrual for compensated absences
Change in the net pension liability and related deferred amounts
Change in net position of governmental activities
The accompanying notes are an integral part of these basic financial statements.
$ 849,922
3,490,972
(3,261,029)
(2,078)
611,000
6,312
(86,414)
(61,672)
$ 1,547,013
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, 2020
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Taxes:
Property
$ 3,951,497
$ 3,951,497
$ 3,867,257
$ (84,240)
Public utility
3,017,973
3,017,973
2,940,406
(77,567)
Franchise fees
1,401,716
1,401,716
1,316,849
(84,867)
Licenses and permits
162,200
162,200
150,240
(11,960)
Intergovernmental
3,102,538
3,326,467
3,013,722
(312,745)
Charges for services
698,866
698,866
663,702
(35,164)
Fines
39,800
39,800
53,164
13,364
Investment earnings
172,270
172,270
68,484
(103,786)
Other revenues
263,300
304,670
303,439
(1,231)
Contributions and donations
37,300
22,219
14,129
(8,090)
Total revenues
12,847,460
13,097,678
12,391,392
(706,286)
Expenditures
Current:
General government:
City council
63,080
63,080
46,701
(16,379)
City manager
276,327
276,527
269,336
(7,191)
City clerk
229,311
271,465
264,888
(6,577)
City attorney
106,291
181,738
167,044
(14,694)
Administrative services
694,267
696,417
674,672
(21,745)
Management information services
535,860
538,660
509,740
(28,920)
Facilities maintenance
525,178
541,994
514,085
(27,909)
Community development
566,324
573,550
524,640
(48,910)
Non -departmental
961,968
999,349
971,772
(27,577)
Total general government
3,958,606
4,142,780
3,942,878
(199,902)
Public safety:
Police administration
1,065,879
1,310,692
1,225,179
(85,513)
Police operations
3,359,316
3,384,572
3,274,902
(109,670)
Police detective division
1,020,336
1,024,934
1,002,242
(22,692)
Police dispatch unit
651,282
653,693
582,844
(70,849)
Code enforcement division
190,709
191,648
184,220
(7,428)
Total public safety
6,287,522
6,565,539
6,269,387
(296,152)
continued...
42
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - General Fund
For the Year Ended September 30, 2020
Physical environment:
Cemetery
Transportation:
Roads and maintenance
Fleet management
Total transportation
Culture and recreation:
Leisure services
Capital outlay
Total expenditures
Revenues over (under) 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
$ 179,176
$ 179,676
$ 177,737
$ (1,939)
949,867
952,350
923,984
(28,366)
211,549
209,924
199,876
(10,048)
1,161,416
1,162,274
1,123,860
(38,414)
1,051,240
1,049,866
955,164
(94,702)
234,500
434,420
413,735
(20,685)
12,872,460
13,534,555
12,882,761
(651,794)
(25,000)
(436,877)
(491,369)
(54,492)
25,000
441,568
-
(441,568)
-
(4,691)
(4,691)
-
25,000
436,877
(4,691)
(441,568)
-
-
(496,060)
(496,060)
6,199,061
6,199,061
6,199,061
-
$ 6,199,061
$ 6,199,061
$ 5,703,001
$ (496,060)
concluded
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, 2020
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Taxes:
Property
$ 397,816
$ 397,816 $
403,240
$ 5,424
Investment earnings
18,750
18,750
5,082
(13,668)
Other revenues
36,000
36,000
36,000
-
Total revenues
452,566
452,566
444,322
(8,244)
Expenditures
Current:
General government
1,350
1,350
1,396
46
Economic environment
512,550
401,555
300,498
(101,057)
Total expenditures
513,900
402,905
301,894
(101,011)
Revenues over (under) expenditures
(61,334)
49,661
142,428
92,767
Other financing sources (uses)
Transfers in
61,334
198,458
-
(198,458)
Transfers out
-
(245,042)
(37,872)
(207,170)
Total other financing sources (uses)
61,334
(46,584)
(37,872)
8,712
Net changes in fund balance
-
3,077
104,556
101,479
Fund balance, beginning of year
374,104
374,104
374,104
-
Fund balance, end of year
$ 374,104
$ 377,181 $
478,660
$ 101,479
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, 2020
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Charges for services
$ 1,940,000 $
1,940,000
$ 1,912,151
$ (27,849)
Investment earnings
36,083
36,083
19,029
(17,054)
Other revenues
-
37,800
38,250
450
Total revenues
1,976,083
2,013,883
1,969,430
(44,4S3)
Expenditures
Current:
Physical environment
1,550,647
1,546,502
1,267,438
(279,064)
Capital outlay
145,000
186,945
186,937
(8)
Total expenditures
1,695,647
1,733,447
1,454,375
(279,072)
Revenues over expenditures
280,436
280,436
515,055
234,619
Other financing uses
Transfers out
(275,000)
(275,000)
(29,019)
(245,981)
Net change in fund balance
5,436
5,436
486,036
480,600
Fund balance, beginning of year
889,713
889,713
889,713
-
Fund balance, end of year
$ 895,149 $
89S,149
$ 1,375,749
$ 480,600
The accompanying notes are an integral part of these basic financial statements.
45
CITY OF SEBASTIAN, FLORIDA
Statement of Net Position
Proprietary Funds
September 30, 2020
Business -type Activities - Enterprise Funds
Golf
Course
Airport
Building
Total
Assets
Current assets:
Cash and cash equivalents
$ 137,957
$ 196,866
$ 797,465 $
1,132,288
Investments
-
-
199,362
199,362
Accounts receivable
499
459
-
958
Due from other governments
-
323,354
323,354
Inventories
13,561
-
-
13,561
Deposits held in escrow
493
616
493
1,602
Prepaid items
8,931
6,159
7,851
22,941
Total current assets
161,441
527,454
1,005,171
1,694,066
Noncurrent assets:
Advance to other funds
-
-
1,175,140
1,175,140
Capital assets:
Land
-
9,060
-
9,060
Buildings
702,060
9,367,542
10,069,602
Improvements other than buildings
1,179,193
1,699,383
2,878,576
Machinery and equipment
395,340
1,020,772
120,990
1,537,102
Infrastructure
1,437,440
12,128,021
-
13,565,461
Construction in process
-
274,500
274,500
Less accumulated depreciation
(2,108,257)
(9,758,418)
(100,125)
(11,966,800)
Total noncurrent assets
1,605,776
14,740,860
1,196,005
17,542,641
Total assets
1,767,217
15,268,314
2,201,176
19,236,707
Liabilities
Current liabilities:
Accounts payable and accrued liabilities
15,971
40,965
30,056
86,992
Due to other funds
500,000
150,000
-
650,000
Due to other governments
8,252
1,636
6,822
16,710
Unearned revenues
79,080
212
6,996
86,288
Rebates payable
-
-
1,107,442
1,107,442
Current portion of leases payable
53,602
-
-
53,602
Total current liabilities
656,905
192,813
1,151,316
2,001,034
Noncurrent liabilities:
Compensated absences
94,343
1,494
140,169
236,006
Advance from other fund
1,175,140
527,891
-
1,703,031
Leases payable
50,801
-
-
50,801
Total noncurrent liabilities
1,320,284
529,385
140,169
1,989,838
Total liabilities
1,977,189
722,198
1,291,485
3,990,872
Net position
Net investment in capital assets
1,501,373
14,740,860
20,865
16,263,098
Unrestricted (deficit)
(1,711,345)
(194,744)
888,826
(1,017,263)
Total net position (deficit) $ (209,972) $ 14,546,116 $ 909,691 $ 15,245,835
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, 2020
Operating revenues
Charges for fees and rents:
Building permit fees
Golf course fees
Rents
Other revenues
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
Interest expense
Gain on sale of capital assets
State mandated rebates
Total nonoperating revenues (expenses)
Income (loss) before capital contributions and transfers
Capital contributions
Transfers
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
$ -
$ $
937,839
$ 937,839
1,485,567
-
1,485,567
30,001
473,573
503,574
9,616
79,216
-
88,832
1,525,184
552,789
937,839
3,015,812
379,352
70,759
607,068
1,057,179
953,646
268,773
135,890
1,358,309
214,634
921,077
19,367
1,155,078
1,547,632
1,260,609
762,325
3,570,566
(22,448)
(707,820)
175,514
(554,754)
2,939
7,438
10,377
(4,294)
(21,475)
-
(25,769)
1,323
2,945
4,268
-
-
(1,107,442)
(1,107,442)
(2,971)
(15,591)
(1,100,004)
(1,118,566)
(25,419)
(723,411)
(924,490)
(1,673,320)
471,888
-
471,888
106,344
8,213
114,557
(8,213)
-
-
(8,213)
(33,632)
(145,179)
(916,277)
(1,095,088)
(176,340)
14,691,295
1,825,968
16,340,923
$ (209,972)
$ 14,546,116 $
909,691
$ 15,245,835
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, 2020
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
Sale of investments
Investment income
Net cash provided 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
$ 1,542,164
$ 258,927
$ 938,100
$ 2,739,191
(955,226)
(456,426)
(137,701)
(1,549,353)
(376,221)
(70,928)
(594,471)
(1,041,620)
210,717
(268,427)
205,928
148,218
(4,294)
(21,475)
-
(25,769)
(8,213)
-
30,154
21,941
(30,154)
72,321
8,213
50,380
(42,661)
50,846
38,367
46,552
(51,768)
(51,768)
(3,717)
(376,860)
(3,953)
(384,530)
2,555
15,686
18,241
-
471,888
471,888
(52,930)
110,714
(3,953)
53,831
-
24,351
24,351
2,939
7,438
10,377
-
2,939
31,789
34,728
115,126
(103,928)
272,131
283,329
22,831
300,794
525,334
848,959
137,957 $
196,866 $
797,465
$ 1,132,288
continued...
EM
CITY OF SEBASTIAN, FLORIDA
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2020
Cash flow from operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:
Depreciation expense
Changein:
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
$ (22,448)
$ (707,820)
$ 175,514
$ (554,754)
214,634
921,077
19,367
1,155,078
(499)
8,327
-
7,828
-
(300,352)
(300,352)
930
-
930
-
(600)
(600)
(3,903)
(6,114)
(7,115)
(17,132)
1,393
(181,539)
5,304
(174,842)
2,229
(138)
1,070
3,161
15,250
(1,699)
(809)
12,742
3,131
431
12,597
16,159
233,165
439,393
30,414
702,972
$ 210,717
$ (268,4271
$ 205,928
$ 148,218
concluded
Non -cash Transactions
For the year ended September, 2020, the building fund recognized rebates payable and state mandated rebates expense of $1,107,442 to
comply with Florida statute 553.80. The statute does not allow a local government to carry forward an amount exceeding the average of its
operating budget for the previous four fiscal years.
The accompanying notes are an integral part of these basic financial statements.
49
CITY OF SEBASTIAN, FLORIDA
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2020
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 government obligations
Mortgage backed securities
Collateralized mortgage obligations
Municipal obligations
Domestic corporate bonds
Foreign corporate bonds
Domestic corporate equities
Foreign corporate equities
Exchange -traded fund equities
Partnerships
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
$ - $ 750
24,159 -
- 92,340
1,263,961 -
75,893 -
1,401,246 -
287,300
221,168 -
1,336,792 -
403,056 -
9,157,535 -
2,108, 209 -
15,582 -
158,068
724,831
17,153, 641 92,340
17,177,800 $ 93,090
- $ 93,090
$ 17,177,800
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, 2020
Police
Officers'
Pension
Additions
Contributions:
Employer
$ 703,814
Plan members
229,327
State
208,645
Total contributions
1,141,786
Investment income:
Net increase in fair value of investments
729,998
Interest and dividends
365,150
Total investment income
1,095,148
Investment expenses
(120,301)
Net investment earnings
974,847
Total additions 2,116,633
Deductions
Benefits 684,963
Administrative expenses 67,989
Total deductions 752,952
Change in net position 1,363,681
Net position, beginning of year 15,814,119
Net position, end of year $ 17,177,800
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 25,658 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 nonmajor fund.
54
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
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."
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.
55
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
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.
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 Riverfront Redevelopment Special Revenue Fund accounts for revenues and expenditures to be
used for special operations in the defined City's riverfront redevelopment area.
The Stormwater Utility Special Revenue Fund is used to account for and report financial resources that
are restricted, committed, or assigned to expenditure for system maintenance.
The Discretionary Sales Tax Capital Projects Fund accounts for the financial resources that are legally
restricted for infrastructure improvements and equipment purchases.
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.
56
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Capital projects funds are used to account for and report financial resources that are restricted,
committed, or assigned to expenditure for capital outlays, including the acquisition or construction of
capital facilities and other capital assets.
The permanent fund is used to record the activity and balance of the Cemetery Trust which provides
funds for perpetual care of cemetery lots.
The pension trust fund accounts for the activities of the Police Officer's Retirement System, which
accumulates resources for pension benefit payments to qualified police officers.
The performance deposits agency fund accounts for deposits placed by bidders and developers to
guarantee performance pursuant to bid or contract. These funds are held by the City as agent for
individuals and businesses.
As a general rule, the effect of interfund activity has been eliminated from the government -wide financial
statements. Exceptions to this general rule are payments in lieu of taxes and various other functions of the
government. Elimination of these charges would distort the direct costs and program revenues reported
for the various functions concerned. The General Fund provides certain central services to other funds of
the City which are presented as program expenses in the funds receiving services. The related General
Fund revenue has been netted against program expense in the government -wide statement of activities.
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.
57
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Investments consist of U.S. Treasury Securities, U.S. Government Agency Securities, common stock,
guaranteed investment contracts and the Local Government Surplus Funds Trust Fund Investment pool.
The Local Government Surplus Funds Trust Fund is administered by the Florida State Board of
Administration, which is not a registrant with the Securities and Exchange Commission. However, the
Board has adopted operating procedures consistent with the requirements for a 2a-7 fund or accounts. In
accordance with the regulations of 2a-7 like pools, the City's share of investments held at the State Board
of Administration are reported at amortized cost, which approximates fair value. This pool is regulated by
the State and the fair value of the position in the pool is the same as the value of the pool share.
Investment earnings are allocated to the participating funds at the end of each month based upon the
ratio of each participant's investment to the total pooled investments. Other investments, including the
Police Officers' Pension Fund, are reported at their fair value based on the quoted market price or the best
available information.
Internal Balances
Transactions between funds that are representative of 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
All trade and property tax receivables are shown net of an allowance for uncollectibles, as applicable.
63
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
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, 2020, 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.
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.
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.
59
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
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 its pension plan.
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.
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 related to its pension plan.
.e
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Long-term Obligations
In the government -wide financial statements and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business -type activities, or proprietary fund type statement of net position.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well
as bond issuance costs, during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing sources while
discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld
from the actual debt proceeds received, are reported as debt service expenditures.
Fund Equity
Governmental funds report nonspendable fund balance for amounts that cannot be spent because they
are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.
Restricted fund balance is reported when externally imposed constraints are placed on the use of
resources by grantors, contributors, or laws or regulations of other governments. Committed fund balance
is reported for amounts that can only be used for specific purposes pursuant to constraints imposed by
formal action of the City Council (the government's highest level of decision -making authority). A formal
resolution of the City Council is required to establish, modify, or rescind a fund balance commitment. The
City 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.
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.
61
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
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. During the year ended September 30, 2020, the City incurred expenditures
in in excess of the amounts appropriated, as follows:
Riverfront Redevelopment fund
General government
Local Option Gas Tax fund
Debt service - Interest and fiscal charges
Law Enforcement Forfeiture fund
Public safety
Final Budget Actual Variance
$ 1,350 $ 1,396 $ 46
14,802 14,886 84
- 6,072 6,072
M
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, 2020:
Statement of Net Position
Cash and cash equivalents $ 11,511,932
Restricted cash and cash equivalents 112,710
Investments 3,359,545
Permanently restricted investments 983,147
Statement of Fiduciary Net Position
Police officers' pension fund investments 17,153,641
Agencyfunds:
Cash and cash equivalents 750
Investments 92,340
Total $ 33,214,065
Deposits and investments
Bank deposits:
Checking and savings accounts $ 11,622,962
Investments:
Investments, at fair value 4,435,032
Police officers' pension fund investments 17,153,641
Cash on hand 2,430
Total $ 33,214,065
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, 2020, the carrying amount of the City of
Sebastian's deposits with banks was $11,662,962 and the bank balance was $11,762,552. 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.
63
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.
64
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
As of September 30, 2020, the City had the following
investments and effective duration
presented in terms of years:
Investment Maturity
(Years)
Investment Type
Fair Value
No Maturities
Less than 1
From 1-3
From 4-6
Over 7
General investments
Local government surplus
funds trust fund ("SBA")
$ 3,888,173
$
$
3,888,173
$
$ $
Florida Local Government
Investment Trust
546,859
546,859
$ 4,435,032
$
$
4,435,032
$
$ $
Police officers' pension fund investments
Money market
$ 1,263,961
$
$
1,263,961
$
$ $
United States government
obligations
75,893
-
75,893
Mortgage backed securities
1,401,246
2
37,630
293,133
1,070,481
Collateralized mortgage
obligations
287,300
-
-
-
287,300
Municipal obligations
221,168
-
95,709
-
125,459
Domestic corporate bonds
1,336,792
76,023
448,993
346,840
464,936
Foreign corporate bonds
403,056
76,100
117,735
131,701
77,520
Domestic corporate equities
9,157,535
9,157,535
-
-
-
-
Foreign corporate equities
2,108,209
2,108,209
Exchange -traded fund
equities
15,582
15,582
Partnerships
158,068
158,068
Real estate investment trust
724,831
724,831
-
-
-
-
$ 17,153,641
$ 12,164,225
$
1,416,086
$
700,067
$ 771,674 $
2,101,589
M
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 & 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 & Poor's for long-term debt, or rated
at least "MIG-2" by Moody's and 'SP-2" by Standard & 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 & Poor's. Commercial paper of any
United States company that is rated, at the time of purchase, "Prime-1" by Moody's and "Ad" by Standard
& 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 & Poor's.
As of September 30, 2020, the City's investment securities, for all investments except the Pension Trust
Fund, were all individually rated AAAm by Standard & Poor's. The investment ratings for the Pension Trust
Fund ranged between AAA through BBB-.
As of September 30, 2020, the City had $3,888,173 invested in the State Board of Administration's Local
Government Surplus Trust Funds Investment Pool, which consist of accounts in Pool A. Pool A had a rating
by Standard and Poor's Rating Services as "AAAm" on September 30, 2020 and amounts may be withdrawn
without penalty. Additionally, the City had $546,859 invested in the Florida Local Government Investment
Trust which had a rating by Standard and Poor's Rating Services as "AAAm" on September 30, 2020.
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.
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.
67
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
As of September 30, 2020, 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 government
obligations
Mortgage backed securities
Collateralized mortgage
obligations
Municipal obligations
Domestic corporate bonds
Foreign corporate bonds
Domestic corporate equities
Foreign corporate equities
Exchange -traded fund
equities
Partnerships
Real estate investment trust
Total
General Investments
Percentage of
Amount Portfolio
$ 3,888,173 87.67%
546,859 12.33 %
- 0.00%
0.00%
- 0.00%
- 0.00%
- 0.00%
- 0.00%
- 0.00%
- 0.00%
- 0.00%
- 0.00%
- 0.00%
- 0.00%
$ 4,435,032 100.00%
Pension Investments
Percentage of S&P/Moody
Amount Portfolio Ratings
1,263,961
75,893
1,401,246
287,300
221,168
1,336,792
403,056
9,157,535
2,108, 209
15,582
158,068
724,831
$ 17,153,641
0.00%
0.00%
7.37%
0.44 %
8.17%
1.67%
1.29 %
7.79 %
2.35 %
53.39%
12.29%
0.09%
0.92%
4.23%
100.00%
AAAm
AAAm
Not Rated
AA+
Aaa
AAA
AAA/A-
AAA/B B B-
AA-/BBB+
Not Rated
Not Rated
Not Rated
Not Rated
Not Rated
C�3
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Foreign Currency Risk. Foreign currency risk is the risk that changes in exchange rates will adversely affect
the fair value of an investment or deposit. Foreign currency risk is mitigated by requiring the portfolio to
be broadly diversified by number of holdings, by geographic location and across industry sectors. Country
exposures are monitored through a monthly performance report. The exposure to foreign currency risk is
as follows:
Pension
Investment (currency in U.S. dollar) Investments
Foreign corporate bonds $ 403,056
Foreign corporate equities 2,108,209
Total $ 2,511,265
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.
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
The City has the following recurring fair value measurements as of September 30, 2020:
Level 1
Local government surplus funds
trust fund ("SBA")
$ 3,888,173 $
Florida Local Government
Investment Trust
546,859
Money market
1,263,961
United States government
obligations
75,893
Mortgage backed securities
-
Collateralized mortgage
obligations
-
Municipal obligations
-
Domestic corporate bonds
73,579
Foreign corporate bonds
-
Domestic corporate equities
9,157,535
Foreign corporate equities
1,029,578
Exchange -traded fund
equities
15,582
Partnerships
158,068
Real estate investment trust
-
Level 2
1,401, 246
287,300
221,168
1,263,213
403,056
1,078,631
$ 16,209,228 $ 4,654,614 $
4. RECEIVABLES
Receivables are comprised of the following at year-end:
Accounts receivable
Due from other governments
Leve13 Total
$ 3,888,173
546,859
1,263,961
75,893
1,401, 246
287,300
221,168
1,336,792
403,056
9,157,535
2,108, 209
15,582
- 158,068
724,831 724,831
724,831 $ 21,588,673
Governmental Business -type
Activities Activities Total
$ 393,423 $ 958 $ 394,381
1,186,380 323,354 1,509,734
$ 1,579,803 $ 324,312 $ 1,904,115
70
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
S. 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 $ 815,262 $ 86,992 $ 902,254
Rebates payable - 1,107,442 1,107,442
Due to other governments 251,824 16,710 268,534
$ 1,067,086 $ 1,211,144 $ 2,278,230
6. INTERFUND RECEIVABLES AND PAYABLES AND TRANSFERS
The composition of interfund balances as of September 30, 2020, was as follows:
Due to and from primary government funds
Due from Other Due to 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
Discretionary Sales Tax $ - $ 527,891
Golf Course 1,175,140 -
Airport 527,891 -
Building - 1,175,140
$ 1,703,031 $ 1,703,031
71
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
The balance of $527,891 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 $1,175,140 was advanced from the Building Fund to replace the irrigation system
and make other improvements at the Golf Course.
For the year ended September 30, 2020, 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
- $ 4,691
- 2,321,749
- 37,872
- 29,019
3,280,101 993,114
- 8,213
106,344 -
8,213 -
$ 3,394,658 $ 3,394,658
Transfers are used to: (1) move revenues from the fund that is required to collect them to the fund that is
required or allowed to expend them; (2) move receipts restricted to or allowed for debt service from the
funds collecting the receipts to the debt service fund as debt service payments become due; and (3) use
unrestricted revenues collected in the general fund to finance various programs accounted for in other
funds in accordance with budgetary authorizations.
72
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
7. CAPITAL ASSETS
Capital asset activity for the primary government for the year ended September 30, 2020, 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
205,968
2,784,745
(2,583,429)
407,284
9,329,009
2,784,745
(2,583,429)
9,530,325
Capital assets, being depreciated:
Buildings
14,269,682
6,660
(1,160)
69,497
14,344,679
Non -building improvements
7,110,088
28,389
(4,696)
630,305
7,764,086
Machinery and equipment
10,263,039
671,178
(751,339)
823,091
11,005,969
Infrastructure
43,206,105
-
1,060,536
44,266,641
74,848,914
706,227
(757,195)
2,583,429
77,381,375
Less accumulated depreciation for:
Buildings
(6,506,734)
(409,115)
1,160
-
(6,914,689)
Non -building improvements
(4,599,525)
(311,095)
3,946
(4,906,674)
Machinery and equipment
(7,790,629)
(1,016,968)
750,011
(8,057,586)
Infrastructure
(26,216,068)
(1,523,851)
-
(27,739,919)
(45,112,956)
(3,261,029)
755,117
-
(47,618,868)
Total capital assets
being depreciated, net
29,735,958
(2,554,802)
(2,078)
2,583,429
29,762,507
Governmental activities
capital assets, net $
39,064,967 $
229,943 $
(2,078) $
-
$ 39,292,832
73
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 2,480,807
326,789
-
(2,533,096)
274,500
2,489,867
326,789
-
(2,533,096)
283,560
Capital assets, being depreciated:
Buildings 10,086,525
-
(16,923)
10,069,602
Non -building improvements 2,868,059
10,517
2,878,576
Machinery and equipment 1,572,198
47,224
(82,320)
-
1,537,102
Infrastructure 11,034,566
-
(2,201)
2,533,096
13,565,461
25,561,348
57,741
(101,444)
2,533,096
28,050,741
Less accumulated depreciation for:
Buildings (2,448,138)
(284,671)
16,923
-
(2,715,886)
Non -building improvements (1,578,688)
(127,789)
-
(1,706,477)
Machinery and equipment (1,091,417)
(173,207)
68,348
(1,196,276)
Infrastructure (5,780,950)
(569,411)
2,200
(6,348,161)
(10,899,193)
(1,155,078)
87,471
-
(11,966,800)
Total capital assets
being depreciated, net 14,662,155
(1,097,337)
(13,973)
2,533,096
16,083,941
Business -type activities
capital assets, net $ 17,152,022
$ (770,548) $
(13,973)
$
-
$ 16,367,501
Depreciation expense was charged to functions/programs of the primary
government as follows:
Depreciation of governmental activities
by function
General government
$
494,801
Public safety
514,421
Physical environment
895,440
Transportation
910,297
Cultural and recreation
446,070
Total governmental activities
$
3,261,029
Depreciation of business -type activities by function
Golf course $ 214,634
Airport 921,077
Building 19,367
Total business -type activities $ 1,155,078
74
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, 2020, 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, 2020:
Beginning Ending Due Within
Balance Additions Deductions Balance One Year
Governmental activities
Notes from direct
borrowings and direct
placements $ 1,984,000 $ - $ (611,000) $ 1,373,000 $ 620,000
Compensated absences 1,437,062 511,290 (424,876) 1,523,476 149,866
Pollution remediation 91,200 - - 91,200 -
Totals governmental
activities $ 3,512,262 $ 511,290 $ (1,035,876) $ 2,987,676 $ 769,866
Notes pavable
Florida Gas Tax Revenue Note, due in bi-annual installments of
$116,000 to $121,000 plus interest at 1.94%
through 2023. $ 591,000
2013 Stormwater Utility Refunding Revenue Note, Series 2013,
due in annual installments of $387,000 to $395,000 plus
interest at 1.73% through 2022. 782,000
$ 1,373,000
75
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, 2020:
Beginning Ending Due Within
Balance Additions Deductions Balance One Year
Business -type activities
Compensated absences
$ 219,847 $ 66,287 $ (50,128) $ 236,006 -
Capitallease
156,171 - (51,768) 104,403 53,602
Totals business -type
activities
$ 376,018 $ 66,287 $ (101,896) $ 340,409 $ 53,602
Annual debt service
requirements to maturity for long-term debt are as follows:
Governmental Activities
Year Ended
September 30,
Principal Interest
2021
$ 620,000 $ 23,868
2022
632,000 12,635
2023
121,000 1,174
$ 1,373,000 $ 37,677
Business -type Activities
Year Ended
September 30,
Principal Interest
2021
$ 53,602 $ 2,789
2022
50,801 890
$ 104,403 $ 3,679
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.
76
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
A pollution remediation obligation was recorded for a Florida Department of Environmental (FDEP) Order
dated March 10, 1997. This was related to an incident of petroleum contamination at the Public Works
Department on April 22, 1991. The City was named as the party responsible for the cleanup but FDEP
determined the discharge is eligible under the Petroleum Cleanup Participation Program and will not
compel site rehabilitation prior to funding becoming available from that program. The program has a
funding cap of $400,000, with a 25% required cost share percentage. The City must also pay for a limited
contamination assessment report sufficient to determine the extent of the contamination and cleanup.
Based on the information available, the City estimated its expenditure to be $91,200 dependent on the
extent of work that is eventually required and recorded a long-term liability of $91,200. This liability would
generally be liquidated by the General Fund.
9. LEASES
Operating Leases - Lessee
The City is obligated under a lease for land accounted for as an operating lease. Operating leases do not
give rise to property rights or lease obligations. Total costs for the lease was $106,000 for the fiscal year
ended September 30, 2020. 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, 2020:
Year Ended Golf Course
September 30, Lessee
2021 $
106,000
2022
106,000
2023
106,000
2024
106,000
2025
106,000
2026-2030
530,000
2031-2035
530,000
2036-2040
530,000
2041-2045
530,000
Total $ 2,650,000
77
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 communication 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
2021
$ 235,932
2022
238,840
2023
221,127
2024
206,020
2025
191,039
2026-2030
1,009,024
2031-2035
1,112,805
2036-2040
1,239,072
2041-2045
1,392,694
2046-2050
1,049,600
2051-2055
1,276,998
Total
$ 8,173,151
U3
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
The Airport Fund is the lessor of various properties (land with a cost basis of $9,060) with lease terms
varying from twenty to thirty years. These include the lease to the Golf Course Fund requiring annual
payments of $106,000 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
2021
$ 365,337
2022
371,982
2023
378,964
2024
317,774
2025
287,855
2026-2030
1,463,214
2031-2035
1,240,011
2036-2040
536,993
2041-2045
354,919
Total $ 5,317,049
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, 2020, was 2.9399 mills. Total tax collections were
approximately 95.1% 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.
79
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
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.
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, 2019 to determine the required contribution for the fiscal year ending September 30, 2020.
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.
Ee
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
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, 2020, 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, 2020, employee membership data was as follows:
Inactive plan members or beneficiaries currently receiving benefits 18
Inactive plan members entitled to but not yet receiving benefits 10
Active plan members 40
Total membership 68
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, 2020, the annual money -weighted rate of return on
pension plan investments, net of pension plan investment expense, was 6.04 percent. The money -
weighted rate of return expresses investment performance, net of investment expense, adjusted for the
changing amounts actually invested.
E�
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Net Pension Liability of the City. The components of the net pension liability of the City at September 30,
2020, were as follows:
Total pension liability $ 21,233,850
Less: Plan fiduciary net position (17,177,800)
City's net pension liability $ 4,056,050
Plan fiduciary net position as
percentage of total pension
liability 80.90%
Actuarial Assumptions. The total pension liability was determined by an actuarial valuation as of October
1, 2019 updated to September 30, 2020 (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 Rate Healthy Active Lives: Female: PubS.H-2010 (Below Median) for Employees, set forward one
year. Male: PubS.H-2010 (Below Median) for Employees, set forward one year.
Mortality Rate Healthy Retiree Lives: Female: PubS.H-2010 for Healthy Retirees, set forward one year.
Male: PubS.H-2010 (Below Median) for Healthy Retirees, set forward one year.
Mortality Rate Beneficiary Lives: Female: PubG.H-2010 (Below Median) for Healthy Retirees. Male: PubG.H-
2010 (Below Median) for Healthy Retirees, set back one year.
Mortality Rate Disabled Lives: 80% PubG.H-2010 for Disabled Retirees / 20% PubS.H-2010 for Disabled
Retirees.
All mortality rates are projected generationally with Mortality Improvement Scale MP-2018.
The most recent actuarial experience study used to review the other significant assumptions was dated
September 13, 2019.
1-Mi
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, 2020 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%
5.33%
2.80%
International equity
12.50%
4.31%
0.54%
Fixed income
25.00%
1.40%
0.35%
Real Estate
5.00%
4.80%
0.24%
Master Limited Partnerships
5.00%
4.70%
0.24%
Total
100.00 %
4.17 %
Inflation 2.30%
Risk adjustments 0.73%
Investment rate of return 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.
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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%
$ 6,715,749 $ 4,056,050 $ 1,845,807
Changes in the Net Pension Liability. The components of the change in the net pension liability are
summarized as follows:
Balances at September 30, 2019
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
Pension plan net investment income
Administrative expense
Net changes
Balances at September 30, 2020
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
$ 19,905,138 $ 15,814,119 $ 4,091,019
600,789
-
600,789
1,451,768
-
1,451,768
408,904
-
408,904
(447,786)
-
(447,786)
(684,963)
(684,963)
-
-
703,814
(703,814)
-
208,645
(208,645)
-
229,327
(229,327)
-
974,847
(974,847)
-
(67,989)
67,989
1,328,712
1,363,681
(34,969)
$ 21,233,850 $ 17,177,800 $ 4,056,050
State statutes mandate that the State contribution be recorded as revenue to the General Fund and then
paid to the Pension Trust Fund.
Changes in assumptions - for the measurement date 09/30/2020, as mandated by Chapter 2015-157, Laws
of Florida, the assumed rates of mortality were changed to the rates used in Milliman's July 1, 2019 FRS
valuation report for special risk employees, with appropriate risk and collar adjustments made based on
plan demographics.
:2
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, 2020, the City recognized pension expense of $997,632. At
September 30, 2020, 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
$ 446,885
$ 51,652
$ 395,233
Changes in assumptions
353,382
373,155
(19,773)
Net difference between projected and actual
earnings on pension plan investments
561,007
-
561,007
$ 1,361,274
$ 424,807
$ 936,467
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
2021
$ 299,985
2022
389,666
2023
224,788
2024
28,508
2025
(6,480)
Total
$ 936,467
Payable to the Pension Plan. At September 30, 2020, the City reported
$0 payable to the
police officer's
pension plan.
EM
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, 2020, was 62.
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.
M.
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 2019-2020 fiscal year.
Employees do not contribute to this plan. Contributions which are equal to 100% of the required
contribution for each year to the CWA Pension Plan are as follows:
Year Ended
September 30,
2016
2017
2018
2019
2020
Defined Contribution 401(a) Plan
Amount
$ 200,889
204,035
217,695
241,992
239,161
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, 2020, there were a total of 22 employees participating in the plan.
M.
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Periodic Payments. Retirement benefits can be paid monthly, quarterly, semi-annual (at six-month
intervals only) or annual payments until assets are fully paid out.
Rollover. Retirement benefits can be rolled over to another employer plan (including a 457 deferred
compensation plan) that accepts rollovers, or to a Traditional IRA.
Lump Sum. Retirement benefits can be paid either partially or by total distribution of the employees'
account balance.
Annuities. Retirement benefits can be utilized to purchase an annuity.
Benefit Provisions and Contribution Requirements. The 401 provides retirement benefits to plan members
and beneficiaries. The plan is administered by the ICMA Retirement Corporation. Contribution
requirements are established by the City of Sebastian, Management Benefit Package, revised October 1,
2006, and approved by the City Manager.
Funding Policy. The administration costs of the pension plan are financed by the Plan. The employer
contribution rate, expressed as a percentage of compensation, was 9% for the 2019-2020 fiscal year.
Employees do not contribute to this Plan. Contributions which are equal to 100% of the required
contribution for each year to the 401 Defined Contribution Plan are as follows:
Year Ended
September 30,
Amount
2016
$ 151,891
2017
120,879
2018
142,347
2019
151,754
2020
163,374
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.
M
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
15. FUND BALANCES - GOVERNMENTAL FUNDS
In accordance with GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, the City classifies
fund balances based primarily on the extent to which it is bound to observe constraints imposed upon the use of the resources
reported in governmental funds. Detailed information on fund balances of governmental funds is as follows:
Discretionary
Riverfront
Stormwater
Nonmajor
General Fund
Sales Tax
Redevelopment
Utility
Funds
Total
Nonspendable:
Inventory
$ 34,837
$
$
$ -
$
$ 34,837
Prepaids
147,966
16,517
164,483
Permanent fund corpus
-
-
1,068,820
1,068,820
Total nonspendable
182,803
16,517
1,068,820
1,268,140
Restricted for:
Debt service
-
-
179,945
179,945
Infrastructure
6,785,087
-
388,403
7,173,490
Redevelopment
-
478,660
-
-
478,660
Stormwater
-
1,359,232
247,172
1,606,404
Law enforcement
88,782
-
-
-
32,782
121,564
Total restricted
88,782
6,785,087
478,660
1,359,232
848,302
9,560,063
Committed for:
Recreational system
development
-
-
-
-
164,044
164,044
Development of
public parking
59,679
59,679
Total committed
-
223,723
223,723
Assigned for:
Law enforcement events
12,157
-
12,157
Unassigned
5,419,259
-
-
-
-
5,419,259
Total fund balances,
governmental funds
$ 5,703,001
$ 6,785,087
$ 478,660
$ 1,375,749
$ 2,140,845
$ 16,483,342
E�
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, 2020, was as follows:
Capital assets:
Capital assets not being depreciated
Capital assets being depreciated, net
Related debt:
Notes payable
Capital lease
Net investment in capital assets
17. COMMITMENTS AND CONTINGENCIES
Contracts and Other Commitments
Governmental Business -type
Activities Activities Total
$ 9,530,325 $ 283,560 $ 9,813,885
29,762,507 16,083,941 45,846,448
39,292,832 16,367,501 55,660,333
1,373,000 - 1,373,000
- 104,403 104,403
1,373,000 104,403 1,477,403
$ 37,919,832 $ 16,263,098 $ 54,182,930
The City has various contracts and commitments outstanding as of September 30, 2020. In the Capital Projects
Fund, there are contracts for replacing the Public Facilities Compound, improving the Working Waterfront,
making Seawall/Canal improvements, work in the Stonecrop Drainage Area, construction of a Taxi Lane and
construction of Hangar D.
A summary of these projects at September 30, 2020 is as follows:
Total Paid as of Encumbered at
Total Contract September 30, September 30,
Price 2020 2020
General Capital Projects - Major Fund
Public Facilities Compound
$ 5,088,899 $
244,859 $
201,476
Working Waterfront
530,956
1,319
1,831
Seawall/Canal Improvements
500,000
-
-
Stonecrop Drainage Area
860,000
12,616
-
Construction of Taxi Lane
513,246
40,404
29,478
Construction of Hangar D
2,250,000
256,830
2,016,769
Total
$ 9,743,101 $
556,028 $
2,249,554
.e
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
18. CORONAVIRUS (COVID-19)
In March 2020, the World Health Organization declared the novel coronavirus outbreak (COVID-19) to be a
global pandemic. The extent of the ultimate impact of the pandemic on the City's operational and financial
performance will depend on various developments, including the duration and spread of the outbreak and its
impact on employees, vendors, and taxpayers, all of which cannot be reasonably predicted at this time. In
addition, it may place additional demands on the City for providing emergency services to its citizens. While
management reasonably expects the COVID-19 outbreak to negatively impact the City's financial position,
changes in financial position, and, where applicable, the timing and amounts of cash flows, the related financial
consequences and duration are highly uncertain.
91
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REQUIRED SUPPLEMENTARY INFORMATION
93
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Single -employer Pension Trust Fund
Schedule of Changes in Net Pension Liability and Related Ratios
Total pension liability
Service cost
Interest on total pension liability
Change in excess state money
Changes of benefit terms
Differences between expected and actual experience
Changes of assumptions
Contributions - buy back
Benefit payments, including refunds of employee contributions
Net change in total pension liability
Total pension liability, beginning of year
Total pension liability, end of year
Plan fiduciary net position
Employer contributions
State contributions
Employee contributions
Buy back contributions
Pension plan net investment income (loss)
Benefit payments
Administrative expense
Net change in plan fiduciary net position
Plan fiduciary net position, beginning of year
Plan fiduciary net position, end of year
Net pension liability
Fiscal Year
Fiscal Year
Fiscal Year
Ending
Ending
Ending
September 30,
September 30,
September 30,
2020
2019
2018
$ 600,789
$ 609,880
$ 589,149
1,451,768
1,371,857
1,270,670
-
-
(84,863)
408,904
(25,912)
164,601
(447,786)
22,520
-
52,749
(684,963)
(617,282)
(700,733)
1,328,712
1,413,812
1,238,824
19,905,138 18,491,326 17,252, 502
21,233,850
19,905,138
18,491,326
703,814
595,045
525,296
208,645
198,770
188,923
229,327
223,495
204,854
-
52,749
-
974,847
261,888
1,028,549
(684,963)
(617,282)
(700,733)
(67,989)
(67,867)
(82,088)
1,363,681
646,798
1,164,801
15,814,119 15,167,321 14,002,520
17,177,800 15,814,119 15,167,321
$ 4,056,050 $ 4,091,019 $ 3,324,005
Plan fiduciary net position as a percentage of total pension liability
80.90%
79.45%
82.02%
Covered payroll
$ 2,866,586 $
2,793,692
$ 2,560,670
Net pension liability as a percentage of covered payroll
141.49%
146.44%
129.81%
94
Fiscal Year
Fiscal Year
Fiscal Year
Fiscal Year
Fiscal Year
Ending
Ending
Ending
Ending
Ending
September 30,
September 30,
September 30,
September 30,
September 30,
2017
2016
2015
2014
2013
$ 479,778
$ 418,143
$ 403,611
$ 396,147
$ 367,653
1,179,511
1,027,558
979,259
914,243
853,018
-
-
22,218
24,386
-
613,973
-
(4,316)
-
20,758
59,175
(240,633)
382,825
626,069
223,200
(495,629)
(493,765)
(496,363)
(452,892)
(465,435)
2,181,216
1,637,180
886,976
881,884
755,236
15,071,286
13,434,106
12,547,130
11,665, 246
10,910,010
17,252,502
15,071,286
13,434,106
12,547,130
11,665,246
337,201
322,998
320,179
401,103
396,603
168,628
169,027
145,700
147,868
145,961
177,585
167,309
161,270
160,494
154,683
1,371,657
1,067,139
(60,326)
951,910
1,029,818
(495,629)
(493,765)
(496,363)
(452,892)
(465,435)
(45,633)
(28,025)
(39,673)
(27,815)
(32,153)
1,513,809
1,204,683
30,787
1,180,668
1,229,477
12,488,711
11,284,028
11,253,241
10,072,573
8,843,096
14,002,520 12,488,711 11,284,028 11,253,241 10,072,573
$ 3,249,982 $ 2,582,575 $ 2,150,078 $ 1,293,889 $ 1,592,673
81.16%
82.86%
84.00%
89.69%
86.35%
$ 2,438,012
$ 2,263,866 $
2,154,612 $
2,106,767 $
2,131,399
133.30%
114.08%
99.79%
61.42%
74.72%
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Single -employer Pension Trust Fund
Schedule of Changes in Net Pension Liability and Related Ratios
Notes to the Schedule of Changes in the City's Net Pension Liability and Related Ratios
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 - For the measurement date 09/30/2020, as mandated by Chapter 2015-157, Laws of Florida, the
assumed rates of mortality were changed to the rates used in Milliman's July 1, 2019 FRS valuation report for special risk
employees, with appropriate risk and collar adjustments made based on plan demographics.
Changes in assumptions - For the measurement date 09/30/2019, amounts reported as changes of assumptions resulted of an
Experience Study dated September 13, 2019, the Board approved the following changes: investment return assumption was
decreased from 7.30% to 7.20% per year compounded annually, net of investment related expenses. The following changes to
demographic assumptions were made: updates to the future salary increase assumption, updates to assumed rates of
retirement, updates to the assumed rates of disability, updates to assumed rates of withdrawal.
Changes in assumptions - For the measurement date 09/30/2017, amounts reported as changes of assumptions resulted from
the following changes: the investment return assumption has been lowered from 7.45% to 7.30% per year. As mandated by
Chapter 2015-157, Laws of Florida, the assumed rates of mortality were changed from the rates used by the Florida
Retirement System actuary in the July 1, 2015 actuarial valuation to the rates used in the July 1, 2016 actuarial valuation for
special risk lives.
Changes in benefit terms - For the measurement date 09/30/2017, amounts reported as changes of benefit terms resulted
from Ordinance 0-17-03, adopted and effective August 23, 2017, amended/implemented the following benefit provisions:
member contribution rate, benefit accrual rate, and cost -of -living adjustment.
Changes in assumptions - For the measurement date 09/30/2016, amounts reported as changes of assumptions resulted from
the following changes: the investment return assumption was lowered from 7.60% to 7.45%. As a result of Chapter 2015-157,
Laws of Florida, the assumed rates of mortality were changed to the assumptions used by the Florida Retirement System for
special risk employees. The inflation assumption rate was lowered from 3.00% to 2.30%, matching the long-term inflation
assumption utilized by the Plan's investment consultant.
Changes in assumptions - For measurement date 09/30/2015, amounts reported as changes of assumptions were resulted
from lowering the investment return assumption from 7.75% to 7.60%.
W.
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Single -employer Pension Trust Fund
Schedule of Investment Returns
Fiscal Year
Ending Annual Return
September 30, (1)
2013
11.51%
2014
9.42%
2015
-0.45%
2016
9.39%
2017
10.90%
2018
7.35%
2019
1.79%
2020
6.04%
(') 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.
97
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Single -employer Pension Trust Fund
Schedule of Contributions
Fiscal Year
Actuarially
Ending
Determined
City
September 30,
Contribution
Contribution
2013
$ 506,560
$ 396,603 $
2014
524,585
401,103
2015
596,502
320,179
2016
667,764
322,998
2017
768,277
337,201
2018
673,456
525,296
2019
793,409
595,045
2020
871,442
703,814
Actual
Contribution
Contribution
as Percentage
State
Deficiency
Covered
of Covered
Contribution
(Excess)
Payroll
Payroll
145,961
$ (36,004)
$ 2,131,399
25.46%
147,868
(24,386)
2,106,767
26.06%
145,700
130,623
2,154,612
21.62%
169,027
175,739
2,263,866
21.73%
168,628
262,448
2,438,012
20.75%
188,923
(40,763)
2,560,670
27.89%
198,770
(406)
2,793,692
28.41%
208,645
(41,017)
2,866,586
31.83%
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Single -employer Pension Trust Fund
Notes to Schedule of Contributions
Valuation date October 1, 2018
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, 2020)
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
7.20% 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%
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Single -employer Pension Trust Fund
Notes to Schedule of Contributions
Salary increases
Final salary load
Payroll growth
Actuarial asset method
Credited
Service Assumption
First year 16.00%
Years 2 - 14 7.40%
15 Years and
Greater 3.80%
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%
2.36% (prior year 2.41%) for amortization of all UAAL bases
Market Value, net of investment -related expenses
100
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
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
2020
239,161
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 2019 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.
101
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102
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
103
CITY OF SEBASTIAN, FLORIDA
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2020
Special Revenue Funds
Debt Service
Stormwater
Local
Law
Utility
Option
Parking
Recreation
Enforcement
Revenue
Gas Tax
In -Lieu -of
Impact Fee
Forfeiture
Bonds 2003
Assets
Cash and cash equivalents
$
330,808
$
-
$
131,232
$
1,421
$ 179,945
Investments
-
59,679
32,812
31,361
-
Due from other governments
62,595
-
-
-
-
Total assets
$
393,403
$
59,679
$
164,044
$
32,782
$ 179,945
Liabilities
Negative equity in pooled cash
$
-
$
-
$
-
$
-
$ -
Accounts payable and accrued liabilities
5,000
Total liabilities
5,000
Fund balances
Nonspendable
-
-
-
Restricted
388,403
-
-
32,782
179,945
Committed
-
59,679
164,044
-
-
Total fund balances
388,403
59,679
164,044
32,782
179,945
Total liabilities and
fund balances
$
393,403
$
59,679
$
164,044
$
32,782
$ 179,945
104
Capital Projects Funds Permanent
Total
Stormwater Nonmajor
Capital Capital Transportation Utility Governmental
Projects Improvements Improvements Improvements Cemetery Funds
$ $ 7,807 $ $ 242,586 $ 85,673 $ 979,472
- - 983,147 1,106,999
425,703 11,711 - 500,009
$ 425,703 $ 7,807 $ - $ 254,297 $ 1,068,820 $ 2,586,480
$ 403,301 $ - $ $ - $ $ 403,301
22,402 7,807 7,125 42,334
425,703 7,807 7,125 445,635
- 1,068,820 1,068,820
247,172 - 848,302
- - 223,723
247,172 1,068,820 2,140,845
$ 425,703 $ 7,807 $ - $ 254,297 $ 1,068,820 $ 2,586,480
105
CITY OF SEBASTIAN, FLORIDA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2020
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
$ 700,185
$
$ -
$
$
Impact fees
-
143,875
Charges for services
-
Fines
-
-
133
Investment earnings
1,990
678
3,148
365
2,165
Other revenues
-
3,010
-
1,300
-
Contributions and donations
-
-
-
-
-
Total revenues
702,175
3,688
147,023
1,798
2,165
Expenditures
Current:
General government
-
-
-
-
-
Public safety
6,072
Physical environment
-
-
Transportation
5,400
-
Debt service:
Principal
229,000
382,000
Interest and fiscal charges
14,886
20,137
Capital outlay
105,554
-
-
Total expenditures
354,840
-
-
6,072
402,137
Revenues over (under) expenditures
347,335
3,688
147,023
(4,274)
(399,972)
Other financing sources (uses)
Transfers in
-
-
-
401,355
Transfers out
(498,043)
(480,160)
-
Total other financing sources (uses)
(498,043)
-
(480,160)
401,355
Net change in fund balances
(150,708)
3,688
(333,137)
(4,274)
1,383
Fund balances, beginning of year
539,111
55,991
497,181
37,056
178,562
Fund balances, end of year
$ 388,403
$ 59,679
$ 164,044
$ 32,782
$ 179,945
106
Capital Projects Funds Permanent
Total
Stormwater Nonmajor
Capital Capital Transportation Utility Governmental
Projects Improvements Improvements Improvements Cemetery Funds
$ 521,658 $ $ $ 33,886 $ $ 1,255,729
- - 143,875
115,240 115,240
- 133
11,920 20,266
- - 4,310
16,000 2,499 18,499
537,658 2,499 33,886 127,160 1,558,052
554,053
554,053
-
-
-
-
6,072
33,547
74,713
80,000
188,260
-
-
-
5,400
611,000
-
-
-
-
35,023
811,911
740,453
1,219,766
12,616
-
2,890,300
1,365,964
774,000
1,219,766
87,329
80,000
4,290,108
(828,306)
(771,501)
(1,219,766)
(53,443)
47,160
(2,732,056)
828,306
777,231
1,219,766
53,443
-
3,280,101
-
-
-
-
(14,911)
(993,114)
828,306
777,231
1,219,766
53,443
(14,911)
2,286,987
-
5,730
-
-
32,249
(445,069)
(5,730)
247,172
1,036,571
2,585,914
$ $
-
$ $
247,172 $
1,068,820
$ 2,140,845
107
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, 2020
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Intergovernmental
$ 750,014
$ 750,014 $
700,185
$ (49,829)
Investment earnings
5,347
5,347
1,990
(3,357)
Total revenues
755,361
755,361
702,175
(53,186)
Expenditures
Current:
Transportation
5,400
5,400
5,400
-
Debt service:
Principal
229,000
229,000
229,000
-
Interest and fiscal charges
14,802
14,802
14,886
84
Capital outlay
106,000
106,000
105,554
(446)
Total expenditures
355,202
355,202
354,840
(362)
Revenues over expenditures
400,159
400,159
347,335
(52,824)
Other financing uses
Transfers out
(211,160)
(544,624)
(498,043)
(46,581)
Net changes in fund balance
188,999
(144,465)
(150,708)
(6,243)
Fund balance, beginning of year
539,111
539,111
539,111
-
Fund balance, end of year
$ 728,110
$ 394,646 $
388,403
$ (6,243)
1:
CITY OF SEBASTIAN, FLORIDA
Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Parking In -Lieu -Of Special Revenue Fund
For the Year Ended September 30, 2020
Original Final
Budget Budget
Revenues
Investment earnings $ 1,342 $ 1,342 $
Other revenues - -
Net change in fund balance 1,342 1,342
Fund balance, beginning of year 55,991 55,991
Fund balance, end of year $ 57,333 $ 57,333 $
Actual Over
(Under) Final
Actual
Budget
678
$ (664)
3,010
3,010
3,688
2,346
55,991
-
59,679
$ 2,346
109
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, 2020
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Impact fees
$ 141,050
$ 141,050
$ 143,875
$ 2,825
Investment earnings
5,134
5,134
3,148
(1,986)
Total revenues
146,184
146,184
147,023
839
Other financing uses
Transfers out
(293,000)
(622,865)
(480,160)
(142,705)
Net change in fund balance
(146,816)
(476,681)
(333,137)
143,544
Fund balance, beginning of year
497,181
497,181
497,181
-
Fund balance, end of year
$ 350,365
$ 20,500
$ 164,044
$ 143,544
110
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, 2020
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Fines
$ 1,000
$ 1,000
$ 133
$ (867)
Investment earnings
250
250
365
115
Other revenues
-
-
1,300
1,300
Total revenues
1,250
1,250
1,798
548
Expenditures
Current:
Public safety
-
-
6,072
6,072
Net change in fund balance
1,250
1,250
(4,274)
(5,524)
Fund balance, beginning of year
37,056
37,056
37,056
-
Fund balance, end of year
$ 38,306
$ 38,306
$ 32,782
$ (5,524)
111
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, 2020
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Investment earnings
$ 3,500
$ 3,500
$ 2,165
$ (1,335)
Expenditures
Debt service:
Principal
382,000
382,000
382,000
-
Interest and fiscal charges
20,138
20,138
20,137
(1)
Total expenditures
402,138
402,138
402,137
(1)
Revenues under expenditures
(398,638)
(398,638)
(399,972)
(1,334)
Other financing sources
Transfers in
401,355
401,355
401,355
-
Net change in fund balance
2,717
2,717
1,383
(1,334)
Fund balance, beginning of year
178,562
178,562
178,562
-
Fund balance, end of year
$ 181,279
$ 181,279
$ 179,945
$ (1,334)
112
AGENCY FUND
113
CITY OF SEBASTIAN, FLORIDA
Combining Statement of Changes in Assets and Liabilities
Agency Fund
For the Year Ended September 30, 2020
Balance
October 1,
2019 Additions
Performance Deposits
Assets
Cash and cash equivalents
Investments, at fair value
Total assets
Liabilities
Refunds payable
$ 10,750 $
92,340
$ 103,090 $
$ 103,090 $
Balance
September 30,
Deletions 2020
- $ (10,000) $ 750
- - 92,340
$ (10,000) $ 93,090
$ (10,000) $ 93,090
114
CAPITAL ASSETS
115
CITY OF SEBASTIAN, FLORIDA
Comparative Schedule by Source
Capital Assets Used in the Operation of Governmental Funds
September 30, 2020
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
2020 2019
$ 9,123,041
$ 9,123,041
14, 344, 679
14,269,682
7,764,086
7,110,088
11,005,969
10,263,039
44, 266, 641
43, 206,105
407,284
205,968
$ 86,911,700 $ 84,177,923
$ 4,501,672 $ 4,479,115
2,947,351
2,940,621
507,031
507,031
11,786,989
12,142,790
102,460
102,460
3,593,730
3,124,996
8,680,628
8,490,537
2,706,509
2,693,061
649,638
634,728
2,936,010
2,931,511
28,273,753
26,508,741
5,528,960
4,925,363
13,816,786
13,816,786
90,621
90,621
789,562
789,562
$ 86,911,700 $ 84,177,923
116
CITY OF SEBASTIAN, FLORIDA
Schedule by Function and Activity
Capital Assets Used in the Operation of Governmental Funds
September 30, 2020
Machinery
Non -Building
and
Functions / Programs
Land
Buildings
Improvements
Equipment
Infrastructure
Total
General government:
City manager
$
$
$
$ 49,954
$
$ 49,954
City clerk
4,003
4,003
Administrative services
1,100
2,294
3,394
MIS
5,841
72,555
1,465,898
1,544,294
Audio visual/broadcast
-
-
18,420
18,420
Facilities maintenance
1,091,573
32,086
792,126
1,915,785
Community development
-
84,426
-
44,851
129,277
Non -departmental
4,474,459
6,184,991
126,638
204,374
52,699
11,043,161
Total general government
4,474,459
7,366,831
232,379
2,581,920
52,699
14,708,288
Public safety:
Administration
9,560
3,799,272
89,320
436,894
-
4,335,046
Road patrol
-
-
-
3,372,712
3,372,712
Code enforcement
-
64,818
64,818
Investigations
1,700
423,651
425,351
Communications
-
26,927
26,927
Building department
-
-
-
6,295
6,295
Total public safety
9,560
3,799,272
91,020
4,331,297
-
8,231,149
Transportation:
Central garage
-
130,489
114,192
232,376
674
477,731
Roads and drainage
47,125
166,907
1,087,622
1,203,644
21,301,578
23,806,876
Total transportation
47,125
297,396
1,201,814
1,436,020
21,302,252
24,284,607
Economic environment:
Non -departmental
2,308,392
1,040,590
6,562
-
-
3,355,544
Physical environment:
Stormwater
-
-
3,870
1,896,701
20,392,692
22,293,263
Cemetery
572,181
201,153
110,204
62,243
22,717
968,498
Total physical environment
572,181
201,153
114,074
1,958,944
20,415,409
23,261,761
Culture/recreation:
Parks and recreation
1,711,324
1,639,437
6,118,237
697,788
2,496,281
12,663,067
Total
$ 9,123,041
$ 14,344,679
$ 7,764,086
$ 11,005,969
$ 44,266,641
86,504,416
Construction in progress
407,284
Total
$ 86,911,700
117
CITY OF SEBASTIAN, FLORIDA
Schedule of Changes
by Function and
Activity
Capital Assets Used in the Operation of Governmental Funds
September 30, 2020
Capital Assets
Capital Assets
October 1,
Transfers
Transfers
September 30,
Functions / Programs
2019
Additions
Disposals
In
Out
2020
General government:
City manager
$ 49,954
$ $
$
$
$ 49,954
City clerk
4,003
4,003
Administrative services
3,394
3,394
MIS
1,314,720
230,827
25,825
24,572
1,544,294
Audio visual/broadcast
18,420
-
-
-
18,420
Facilities maintenance
1,556,691
202,291
1,160
166,132
8,169
1,915,785
Community development
139,800
-
10,523
-
-
129,277
Non -departmental
11,064,192
-
4,628
-
16,403
11,043,161
Total general government
14,151,174
433,118
42,136
190,704
24,572
14,708,288
Public safety:
Special operations
29,993
-
2,724
-
27,269
-
Administration
4,243,480
123,361
31,795
-
4,335,046
School resource
37,520
-
25,975
-
11,545
-
Road patrol
3,296,288
423,834
392,991
45,581
-
3,372,712
Community policing
7,260
-
2,015
-
5,245
-
Code enforcement
54,856
9,962
-
-
64,818
Investigations
396,204
36,992
6,323
1,522
425,351
Communications
20,286
6,641
-
-
26,927
Building department
6,295
-
-
-
-
6,295
Total public safety
8,092,182
600,790
461,823
45,581
45,581
8,231,149
Transportation:
Central garage
475,354
2,377
-
-
-
477,731
Roads and drainage
22,931,105
1,072,106
50,090
146,245
23,806,876
Total transportation
23,406,459
1,074,483
50,090
146,245
24,284,607
Economic environment:
Non -departmental
3,355,544
-
-
-
-
3,355,544
Physical environment:
Stormwater
22,209,448
182,793
99,843
865
-
22,293,263
Cemetery
990,526
-
1,276
-
20,752
968,498
Total physical environment
23,199,974
182,793
101,119
865
20,752
23,261,761
Culture/recreation:
Parks and recreation
11,766,622
998,472
102,027
-
-
12,663,067
Total
83,971,955
3,289,656
757,195
237,150
237,150
86,504,416
Construction in progress
205,968
201,316
-
-
-
407,284
Total
$ 84,177,923
$ 3,490,972 $
757,195
$ 237,150
$ 237,150
$ 86,911,700
118
STATISTICAL SECTION
119
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120
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. 122
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. 134
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. 140
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. 146
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. 150
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.
121
CITY OF SEBASTIAN, FLORIDA
Net Position by Component
Last Ten Fiscal Years
Fiscal Year
2020 2019 2018 2017 2016
Governmental activities
Net investment in capital assets
$ 37,919,832 $
37,080,967
$ 37,568,980
$ 37,461,026
$ 35,886,087
Restricted
10,637,069
8,976,174
6,419,900
5,113,543
5,209,372
Unrestricted
1,103,683
2,056,430
1,649,796
1,236,088
3,615,777
Total governmental activities net position
$ 49,660,584 $
48,113,571
$ 45,638,676
$ 43,810,657
$ 44,711,236
Business -type activities
Net investment in capital assets
$ 16,263,098
$ 16,995,851
$ 14,972,789
$ 13,384,969
$ 11,989,666
Unrestricted (deficit)
(1,017,263)
(654,928)
(777,422)
(1,008,976)
(717,053)
Total business -type activities net position $ 15,245,835 $ 16,340,923 $ 14,195,367 $ 12,375,993 $ 11,272,613
Primary Government
Net investment in capital assets
$ 54,182,930
$ 54,076,818
$ 52,541,769
$ 50,845,995
$ 47,875,753
Restricted
10,637,069
8,976,174
6,419,900
5,113,543
5,209,372
Unrestricted
86,420
1,401,502
872,374
227,112
2,898,724
Total primary government net position
$ 64,906,419
$ 64,454,494
$ 59,834,043
$ 56,186,650
$ 55,983,849
122
Table 1 - Unaudited
Fiscal Year
2015 2014 2013 2012 2011
$ 35,220,857 $ 35,210,526 $ 32,038,749 $ 31,500,173 $ 31,541,953
4,997,724 5,115,627 5,839,440 6,192,777 5,668,155
3,467,014 3,330,400 4,577,440 3,607,228 4,052,751
$ 43,685,595 $ 43,656,553 $ 42,455,629 $ 41,300,178 $ 41,262,859
$ 10,517,895 $ 10,439,804 $ 10,846,501 $ 11,181,823 $ 11,850,561
67,779 (103,116) (306,497) (490,298) (644,620)
$ 10,585,674 $ 10,336,688 $ 10,540,004 $ 10,691,525 $ 11,205,941
$ 45,738,752 $ 45,650,330 $ 42,885,250 $ 42,681,996 $ 43,392,514
4,997,724 5,115,627 5,839,440 6,192,777 5,668,155
3,534,793 3,227,284 4,270,943 3,116,930 3,408,131
$ 54,271,269 $ 53,993,241 $ 52,995,633 $ 51,991,703 $ 52,468,800
123
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
2020 2019 2018 2017 2016
$ 5,071,184 $ 3,970,541 $ 3,926,479 $ 3,379,369 $ 3,285,607
6,856,836
6,613,707
6,227,299
6,549,037
5,476,136
2,534,320
3,106,764
3,431,933
3,769,377
2,538,752
2,037,807
2,022,117
1,949,882
2,279,149
1,861,946
315,985
402,986
238,597
106,577
364,675
1,402,691
1,434,296
1,279,635
1,326,245
1,191,488
28,711
38,539
56,523
63,141
82,943
18, 247,534
17,588,950
17,110,348
17,472,895
14,801,547
1,551,926
1,533,749
1,555,853
1,537,332
1,584,214
1,282,084
1,336,180
1,328,258
1,361,134
1,197,549
1,869,767
715,846
664,066
586,752
546,649
4,703,777
3,585,775
3,548,177
3,485,218
3,328,412
22,951,311
21,174,725
20,658,525
20,958,113
18,129,959
684,938
532,721
466,261
362,631
374,581
130,502
147,121
74,216
124,800
98,446
2,037,874
2,161,464
1,064,659
1,021,038
1,049,735
41,316
54,769
52,160
48,781
53,959
1,726,719
803,092
1,776,070
250,292
323,101
3,647,329
251,088
181,050
947,274
809,932
8,268,678
3,950,255
3,614,416
2,754,816
2,709,754
1,525,184
1,400,939
1,257,047
1,058,939
1,135,357
552,789
536,442
583,310
499,321
516,403
937,839
864,068
911,643
747,950
810,069
-
46,771
115,907
116,055
-
471,888
2,670,116
2,120,953
1,566,737
841,668
3,487,700
5,518,336
4,988,860
3,989,002
3,303,497
11,756,378
9,468,591
8,603,276
6,743,818
6,013,251
(9,978,856)
(13,638,695)
(13,495,932)
(1,216,077)
1,932,561
1,440,683
(11,194,933)
(11,706,134)
(12,055,249)
(14,718,079)
503,784
(14,214,295)
(12,091,793)
(24,915)
(12,116,708)
124
Table 2 - Unaudited
Fiscal Year
2015 2014 2013 2012 2011
$ 3,015,536
$ 2,923,398
$ 2,784,485
$ 2,640,677
$ 2,766,575
5,164,197
4,908,374
4,928,203
5,025,274
5,546,632
2,759,461
2,310,539
2,039,380
2,007,902
1,558,974
2,024,814
1,828,569
1,845,429
1,800,432
2,263,367
194,630
247,891
155,214
170,960
208,518
1,293,246
1,229,369
1,232,345
1,239,512
1,227,198
100,468
235,071
368,432
562,496
546,103
14,552,352
13,683,211
13,353,488
13,447,253
14,117,367
1,409,829
1,406, 770
1,377,039
1,394, 731
1,355,266
1,038,361
1,031,464
1,146,905
1,166, 588
1,188,788
531,087
465,717
417,887
397,295
470,406
2,979,277
2,903,951
2,941,831
2,958,614
3,014,460
17, 531,629
16,587,162
16, 295,319
16,405,867
17,131,827
372,255
407,068
314,158
214,488
197,945
80,763
76,132
67,297
66,474
92,350
1,087,642
1,073,015
1,101,864
876,693
868,059
67,940
67,371
70,982
66,954
61,353
345,937
186,295
332,627
187,333
196,534
994,546
739,785
770,123
791,265
838,242
2,949,083
2,549,666
2,657,051
2,203,207
2,254,483
1,333,189
1,277,660
1,302,441
1,394,844
1,382,421
457,318
470,703
481,759
491,367
485,229
712,620
700,751
706,964
419,705
401,021
702,154
235,215
230,868
150,083
900,340
3,205,281
2,684,329
2,722,032
2,455,999
3,169,011
6,154,364
5,233,995
5,379,083
4,659,206
5,423,494
(11,603,269)
(11,133,545)
(10,696,437)
(11,244,046)
(11,862,884)
226,004
(219,622)
(219,799)
(502,615)
154,551
(11,377,265)
(11,353,167)
(10,916,236)
(11,746,661)
(11,708,333)
continued...
125
CITY OF SEBASTIAN, FLORIDA
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year
2020 2019 2018 2017 2016
General revenue and other changes in net position
Governmental activities:
Property taxes, levied for general purposes $
4,270,497
$ 4,325,759
$ 4,153,194
$ 4,147,115
$ 3,942,048
Sales and use taxes
2,940,406
2,882,460
2,808,172
5,945,386
5,762,921
Franchise fees
1,316,849
1,343,744
1,316,792
1,271,403
1,257,430
State shared revenues not restricted
to specific programs
2,541,474
7,109,496
6,887,664
2,616,522
2,466,546
Investment earnings
180,988
378,657
216,185
135,614
77,317
Miscellaneous
381,999
277,970
312,401
290,269
316,239
Transfers
(106,344)
(204,496)
(370,457)
(588,809)
(705,067)
Total governmental activities
11,525,869
16,113,590
15,323,951
13,817,500
13,117,434
Business -type activities:
Investment earnings
10,377
8,499
8,234
10,787
6,787
Gain on sale of capital assets
4,268
-
-
-
-
Miscellaneous
-
-
-
-
-
Transfers
106,344
204,496
370,457
588,809
705,067
Total business -type activities
120,989
212,995
378,691
599,596
711,854
Total primary government general revenue
11,646,858
16,326,585
15,702,642
14,417,096
13,829,288
Change in net position
Governmental activities
1,547,013
2,474,895
1,828,019
(900,579)
1,025,641
Business -type activities
(1,095,088)
2,145,556
1,819,374
1,103,380
686,939
Total primary government change in
net position $
451,925
$ 4,620,451
$ 3,647,393
$ 202,801
$ 1,712,580
126
Fiscal Year
2015 2014 2013 2012
Table 2 - Unaudited
2011
$ 3,594,210 $ 3,248,113 $ 3,221,304 $ 3,063,495 $ 3,453,778
5,555,270
5,320,051
5,123,046
4,852,413
4,751,021
1,241,515
1,190, 233
1,118,886
1,124, 568
1,184, 686
2,365,137
2,208,700
2,063,450
1,934,733
1,868,555
65,256
43,293
74,650
82,129
111,943
240,179
338,901
315,296
201,538
171,119
2,988
(14,822)
(37,734)
22,489
-
13,064,555
12,334,469
11,878,898
11,281,365
11,541,102
5,368
1,484
4,391
6,563
4,026
20,602
-
274
4,125
(2,988)
14,822
37,734
(22,489)
-
22,982
16,306
42,399
(11,801)
4,026
13,087,537
12,350,775
11, 921, 297
11, 269,564
11, 545,128
1,461,286
1,200,924
1,182,461
37,319
(321,782)
248,986
(203,316)
(177,400)
(514,416)
158,577
$ 1,710,272 $ 997,608 $ 1,005,061 $ (477,097) $ (163,205)
concluded
127
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
2020
2019
2018
2017
2016
$ 182,803
$ 94,564
$ 234,852 $
342,505 $
227,651
88,782
103,900
77,185
63,016
46,262
12,157
12,157
13,871
12,350
10,840
5,419,259
5,988,440
5,047,473
4,089,275
5,526,675
5,703,001
6,199,061
5,373,381
4,507,146
5,811,428
1,085,337
1,036,571
1,542,466
941,061
996,778
9,471,281
7,850,346
4,822,199
4,131,416
4,193,653
223,723
553,172
707,667
995,144
977,868
-
(5,730)
(3,048)
(26,370)
(129,401)
10,780,341 9,434,359 7,069,284 6,041,251 6,038,898
$ 16,483,342 $ 15,633,420 $ 12,442,665 $ 10,548,397 $ 11,850,326
128
Fiscal Year
2015 2014 2013 2012
Table 3 - Unaudited
2011
$ 316,036 $
369,329 $
368,564
$ 370,450
$ 346,995
38,544
7,969
28,632
-
-
-
-
-
2,861,708
2,949,139
8,692
7,129
7,020
35,707
21,911
5,289,322
5,348,905
5,065,242
1,734,307
1,784,413
5,652,594
5,733,332
5,469,458
5,002,172
5,102,458
928,758
1,390,073
1,323,838
1,289,693
1,494,779
4,181,787
3,756,950
4,647,950
4,371,826
4,748,376
815,688
625,007
589,364
719,686
-
(58,618)
(64,875)
-
-
5,867,615 5,707,155 6,561,152 6,381,205 6,243,155
$ 11,520,209 $ 11,440,487 $ 12,030,610 $ 11,383,377 $ 11,345,613
129
CITY OF SEBASTIAN, FLORIDA
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
Revenues
Taxes
Franchise fees
Licenses, fees and permits
Intergovernmental
Impact fees
Charges for services
Fines
Investment earnings
Contributions and donations
Other revenues
Total revenues
Expenditures
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Culture and recreation
Debt service:
Principal
Interest
Capital outlay
Total expenditures
Revenues over (under) expenditures
Other financing sources (Uses)
Issuance of long-term debt
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Debt service as a percentage of
noncapital expenditures (1)
Fiscal Year
2020 2019 2018 2017 2016
$ 7,210,903 $ 7,208,219 $ 6,961,366 $ 10,738,778 $ 10,326,654
1,316,849
1,343,744
1,316, 792
1,271,403
1,257,430
150,240
146,812
165,922
135,900
136,614
7,739,019
7,996,330
8,648,064
2,991,190
2,709,066
143,875
129,550
141,050
102,700
163,800
2,691,093
2,698,117
1,443,123
1,353,009
1,391,495
53,297
51,146
48,251
96,842
73,059
180,988
378,657
216,185
135,614
77,317
381,999
277,970
55,670
45,420
80,581
32,628
37,796
312,401
290,269
316,239
19,900,891
20, 268,341
19,308,824
17,161,125
16,532, 255
4,498,327
3,536,154
3,492,883
2,943,790
3,053,554
6,275,459
6,035,675
5,659,861
5,134,388
4,968,258
1,633,435
1,871,853
2,195,332
2,565,532
1,316,697
1,129,260
1,142,412
1,079,509
1,333,927
1,168,919
315,985
402,986
238,597
73,491
331,589
955,164
1,027,371
875,172
927,374
849,789
611,000
601,000
590,000
931,000
1,935,000
35,023
45,846
56,523
68,512
92,907
3,490,972
2,209,793
2,856,222
3,896,231
1,780,358
18,944,625
16,873,090
17,044,099
17,874, 245
15,497,071
956,266
3,395,251
2,264,725
(713,120)
1,035,184
3,280,101
2,451,428
4,427,037
7,184,858
(3,386,445)
(2,655,924)
(4,797,494)
(7,773,667)
(106,344)
(204,496)
(370,457)
(588,809)
$ 849,922
$ 3,190,755 $
1,894,268
$ (1,301,9291 $
4.2%
4.4%
4.6%
7.2%
3,694,279
(4,399,346)
(705,067)
330,117
14.8%
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).
130
Table 4 - Unaudited
Fiscal Year
2015
2014
2013
2012
2011
$ 9,782,109
$ 9,123,879
$ 8,894,880
$ 8,465,990
$ 8,762,729
1,241, 515
1,190,233
1,118,886
1,124,568
1,184, 686
147,219
138,564
45,500
22,431
1,121,967
2,742,950
2,373,695
2,411,395
2,088,038
23,646
281,450
168,350
169,000
58,500
81,534
1,397,395
1,431,101
1,462,522
1,158,075
2,249,447
63,035
54,140
60,190
57,575
42,250
65,256
43,293
78,411
86,516
-
48,124
36,801
22,406
216,091
103,795
241,597
338,901
315,296
201,888
224,823
16,010,650
14,898,957
14, 578,486
13,479, 672
13, 794,877
2,717,049
2,575,605
2,447,893
2,410,345
2,539,211
4,666,343
4,623,060
4,425,000
4,523,802
5,030,708
1,498,706
1,110,788
1,075,162
1,042,349
1,166, 309
1,187,871
1,165,004
1,158,945
1,208,411
1,217, 521
161,545
144,612
122,730
138,531
188,918
893,394
888,795
847,781
876,502
903,836
1,567,000
2,306,000
1,307,000
3,321,000
1,203,000
108,678
413,995
393,447
472,399
521,152
3,133,330
2,246,399
2,115,561
1,767,058
4,048,051
15,933,916
15,474,258
13,893, 519
15,760,397
16,818, 706
76,734
(575,301)
684,967
(2,280,725)
(3,023,829)
-
-
-
2,296,000
-
4,989,726
3,903,204
3,598,949
3,694,765
5,376,658
(4,986,738)
(3,918,026)
(3,636,683)
(3,672,276)
(5,376,658)
2,988
(14,822)
(37,734)
2,318,489
$ 79,722
$ (590,123)
$ 647,233
$ 37,764
$ (3,023,829)
13.1%
20.6%
14.4%
27.1%
13.5%
131
CITY OF SEBASTIAN, FLORIDA
Program Revenues by Function/Program
Last Ten Fiscal Years
Fiscal Year
2020
2019
2018
2017
2016
Program revenues
Governmental activities:
General government
$ 4,749,501
$ 1,096,978
$ 1,997,400
$ 390,921
$ 479,395
Public safety
399,361
444,199
346,239
334,270
306,381
Physical environment
2,037,874
2,161,464
1,064,659
1,021,038
1,049,735
Transportation
896,751
13,295
12,908
687,310
656,484
Economic environment
-
-
-
-
-
Culture and recreation
185,191
234,319
193,210
321,277
217,759
Total governmental activities
8,268,678
3,950,255
3,614,416
2,754,816
2,709,754
Business -type activities:
Charges for services:
Golf Course
1,525,184
1,401,260
1,355,652
1,170,591
1,135,357
Airport
1,024,677
3,253,008
2,704,263
2,070,461
1,358,071
Building
937,839
864,068
928,945
747,950
810,069
Total business -type activities
3,487,700
5,518,336
4,988,860
3,989,002
3,303,497
Total primary government
$ 11,756,378
$ 9,468,591
$ 8,603,276
$ 6,743,818
$ 6,013,251
132
Table 5 - Unaudited
Fiscal Year
2015 2014 2013 2012 2011
$ 534,524
$ 413,727
$ 471,299 $
230,550
$ 243,039
254,381
246,010
233,309
228,392
234,437
1,087,642
1,073,015
1,101,864
876,693
930,018
643,146
565,692
560,713
560,055
743,383
-
15,501
-
13,998
-
429,390
235,721
289,866
293,519
103,606
2,949,083
2,549,666
2,657,051
2,203,207
2,254,483
1,333,189
1,277,660
1,302,441
1,394,892
1,382,421
1,159,472
705,918
712,627
641,455
1,385,569
712,620
700,751
706,964
426,215
401,021
3,205,281
2,684,329
2,722,032
2,462,562
3,169,011
$ 6,154,364 $ 5,233,995 $ 5,379,083 $ 4,665,769 $ 5,423,494
133
CITY OF SEBASTIAN, FLORIDA
Tax Revenues by Source
Governmental Funds
For the Last Ten Fiscal Years
(Rate per $1,000 of assessed value)
Table 6 - Unaudited
Public
Property
Tax Year
Fiscal Year
Utility z
Taxes 1
Total
2010
2011
$ 2,392,345
$ 3,453,778
$ 5,846,123
2011
2012
2,387,553
3,063,495
5,451,048
2012
2013
2,534,434
3,221,304
5,755,738
2013
2014
2,581,427
3,248,113
5,829,540
2014
2015
2,638,711
3,594,210
6,232,921
2015
2016
2,686,322
3,942,048
6,628,370
2016
2017
2,708,980
4,147,115
6,856,095
2017
2018
2,808,172
4,153,194
6,961,366
2018
2019
2,882,460
4,325,759
7,208,219
2019
2020
2,940,406
4,270,497
7,210,903
Millage
Rate
3.3041
3.3041
3.7166
3.7166
3.8556
3.8556
3.8000
3.4000
3.1514
2.9399
1 Property taxes comprise the City's largest and most significant own -source revenue.
z Public utility taxes include a 10% tax on electric, water, gas and propane purchases, plus a communication
services tax.
134
CITY OF SEBASTIAN, FLORIDA
Direct and Overlapping Property Tax Rates
For the Last Ten Fiscal Years
(Rate per $1,000 of taxable value)
Table 7 - Unaudited
City Direct Rates
Overlapping Rates
County School Board
Tax
Fiscal
Basic
Debt
Total
Total
Basic
Debt
Year
Year
Rate
Service
Direct
County'
Rate
Service
Total
Other
2010
2011
3.3041
0.0000
3.3041
6.2860
7.9200
0.3000
8.2200
1.35050
2011
2012
3.3041
0.0000
3.3041
6.9590
7.8940
0.3500
8.2440
1.35460
2012
2013
3.7166
0.0000
3.7166
6.2572
7.9230
0.3900
8.3130
1.35460
2013
2014
3.7166
0.0000
3.7166
5.6207
8.1160
-
8.1160
1.71280
2014
2015
3.8556
0.0000
3.8556
5.6868
7.9950
7.9950
1.71260
2015
2016
3.8556
0.0000
3.8556
5.9468
7.9550
7.9550
1.69930
2016
2017
3.8000
0.0000
3.8000
5.9755
7.4100
7.4100
1.51700
2017
2018
3.4000
0.0000
3.4000
6.1214
7.0530
7.0530
1.53900
2018
2019
3.1514
0.0000
3.1514
6.1086
6.7930
6.7930
1.53960
2019
2020
2.9399
0.0000
2.9399
6.1698
6.5690
6.5690
1.40910
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.
1 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
135
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
2010
2011
$ 1,650,311,449
$ 2,062,889,311
$ 56,920,223
$ 56,920,223
2011
2012
1,392,267,434
1,740,334,293
55,234,086
55,234,086
2012
2013
1,273,059,710
1,591,324,639
48,922,492
48,922,492
2013
2014
1,210,328,690
1,512,910,863
47,410,545
47,410,545
2014
2015
1,267,035,970
1,583,794,963
53,045,209
53,045,209
2015
2016
1,363,105,220
1,703,881,525
55,646,868
55,646,868
2016
2017
1,447,311,640
1,809,139,550
59,305,756
59,305,756
2017
2018
1,578,743,546
1,973,429,433
62,277,711
62,277,711
2018
2019
1,705,459,458
2,131,824,323
66,819,663
66,819,663
2019
2020
1,843,910,442
2,304,888,053
73,492,650
73,492,650
Source: Indian River County Property Appraiser
136
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
3.3041
$ 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%
137
CITY OF SEBASTIAN, FLORIDA Table 9 - Unaudited
Principal Property Taxpayers
Current Year and Nine Years Ago
2020 Fiscal Year
2011 Fiscal Year
Percentage
Percentage
of Total City
of Total City
Taxable
Taxable
Taxable
Taxable
Taxpayer
Value
Rank
Value
Value
Rank
Value
Florida Power & Light (Utility/Electric)
$ 38,024,896
1
2.75 %
$ 13,828,553
1
1.40
Comcast of Florida, Inc. (Communications)
12,773,826
2
0.92
-
-
-
Wal-Mart Stores, Inc. (Retail)
8,558,853
3
0.62
8,432,070
2
0.85
Park Place Community, LLC (Rental/Retail)
8,111,034
4
0.59
6,684,799
3
0.68
Sebastian Senior Real Estate, LLC (Group Home)
7,595,546
5
0.55
-
-
-
BW US 1, Inc. (Commercial)
6,102,524
6
0.44
6,147,300
4
0.62
Hartwell Groves, Inc. (Agriculture)
6,067,419
7
0.44
4,236,520
7
0.43
PSM Sebastian, LLC
5,243,940
8
0.38
-
-
-
CSGBSH Sebastian, LLC
5,169,399
9
0.37
MPA Sebastian, LLC
5,008,662
10
0.36
IPF/Sebastian LLC (Retail)
-
-
-
5,214,160
5
0.53
Bellsouth Communications (Utility/Telephone)
5,202,931
6
0.53
Sebastian Medical Suites (Healthcare)
3,891,480
8
0.39
Sebastian Inlet (Restaurant/Hotel)
3,321,780
9
0.34
WinnDixie Shopping Center (Retail)
3,283,720
10
0.33
$ 102,656,099
7.42 %
$ 60,243,313
6.10
Total Taxable Value
$ 1,383,688,734
$ 986,748,734
Source: Indian River County Property Appraiser
138
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
forthe
Percentage
Penalty Tax
Percentage
Year
Year
Fiscal Year
Amount
of Levy
Collections
Amount
of Levy
2010
2011
$ 3,796,877 $
3,144,864
96.46%
$ 11,294 $
3,156,158
83.13%
2011
2012
3,260,316
2,799,146
96.55%
9,279
2,808,425
86.14%
2012
2013
3,261,161
2,947,248
96.63%
7,733
2,954,981
90.61%
2013
2014
3,050,210
2,975,299
96.77%
754
2,976,053
97.57%
2014
2015
3,412,244
3,295,549
96.28%
2,241
3,297,790
96.65%
2015
2016
3,727,641
3,530,235
95.00%
72,789
3,603,024
96.66%
2016
2017
3,943,212
3,726,976
95.00%
77,898
3,804,874
96.49%
2017
2018
3,925,616
3,703,536
94.00%
83,126
3,786,662
96.46%
2018
2019
3,980,678
3,861,686
97.00%
79,857
3,941,543
99.02%
2019
2020
4,067,907
3,791,174
93.00%
76,083
3,867,257
95.07%
Source: Indian River County Property Appraiser and Department of Revenue,
Certification of Final Taxable Value, DR-422.
139
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
Year
Notes
Bonds/Notes
Bonds/Notes
Lease
Government
Income
1
1
2011
$ 2,246,000
$ 6,215,000
$ 3,785,000
$
$ 12,246,000
0.0017%
2012
2,296,000
5,420,000
3,505,000
11,221,000
0.0015%
2013
2,099,000
4,600,000
3,215,000
9,914,000
0.0013%
2014
1,896,000
2,730,000
2,982,000
7,608,000
0.0008%
2015
1,689,000
1,722,000
2,630,000
6,041,000
0.0006%
2016
1,478,000
353,000
2,275,000
4,106,000
0.0003%
2017
1,263,000
-
1,912,000
254,453
3,429,453
0.0003%
2018
1,044,000
1,541,000
206,167
2,791,167
0.0002%
2019
820,000
1,164,000
156,171
2,140,171
0.0002%
2020
591,000
782,000
104,403
1,477,403
z
1
The Infrastructure Sales Tax and Stormwater Utility Revenue Bonds were refunded in 2014
with Bank Notes.
z
Information not yet available.
Per
Capita
558
510
447
341
267
193
142
113
85
58
140
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141
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
2020 2019 2018 2017
$ 74,102,711 $ 69,183,437 $ 63,157,289 $ 57,729,642
1,373,000 1,984,000 2,585,000 3,175,000
$ 72,729,711 $ 67,199,437 $ 60,572,289 $ 54,554,642
1.85% 2.87% 4.09% 5.50%
Legal Debt Margin Calculation for Fiscal Year 2020
Assessed value
$ 2,032,200,347
Less: Exempt property
(550,146,131)
Taxable Value
1,482,054,216
Debt limit (5% of taxable value)
74,102,711
Debt applicable to limit:
Revenue bonds/notes
1,373,000
Total net debt applicable to limit 1,373,000
Legal debt margin $ 72,729,711
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, 2020
and only uses Local Option Gas Taxes and Discretionary Sales Taxes to repay the outstanding revenue notes.
Property taxes are not used for any debt service payments.
142
Table 13 - Unaudited
Fiscal Year
2016 2015 2014 2013 2012 2011
$ 48,340,610 $ 48,340,610 $ 44,250,493 $ 41,034,956 $ 43,872,903 $ 49,337,437
6,041,000 6,041,000 7,608,000 9,914,000 11,221,000 12,246,000
$ 42,299,610 $ 42,299,610 $ 36,642,493 $ 31,120,956 $ 32,651,903 $ 37,091,437
12.50% 12.50% 17.19% 24.16% 25.58% 24.82%
143
CITY OF SEBASTIAN, FLORIDA
Pledged Revenue Coverage
For the Last Ten Fiscal Years
Stormwater Utility Revenue Bonds, Series 2003
Debt Service
Table 14 - Unaudited
Fiscal
Gross
Year
Revenues'
Principal
Interest
Total
Coverage Z
2011
$ 816,415
$ 270,000
$ 169,035 $
439,035
1.86
2012
810,382
280,000
159,248
439,248
1.84
2013
1,007,221
290,000
148,048
438,048
2.30
2014
-
-
-
-
-
2015
2016
2017
2018
2019
2020
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.
2 Required coverage was 1.35. Bank notes were used in 2013 to refund the bonds
144
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145
CITY OF SEBASTIAN, FLORIDA
Demographic and Economic Statistics
For the Last Ten Calendar Years
Personal
Income
(thousands
Year
Population
of dollars)'
2011
21,929
$ 7,080,348 $
2012
21,995
7,429,653
2013
22,188
7,731,263
2014
22,296
9,139,902
2015
22,622
10,055,169
2016
23,137
10,380,777
2017
24,192
11,312,198
2018
24,630
11,972,663
2019
25,168
12,924,659
2020
25,658
4
Per
Capita
Median
Personal
Household
School
Unemployment
Income'
Income'
Enrollment 2
Rate'
50,977
$ 42,053
5,228
13.4
52,855
42,638
5,208
11.8
54,448
44,326
6,739
8.8
63,140
47,548
6,034
6.5
68,653
49,887
5,930
6.1
71,181
49,813
6,132
6.2
73,274
51,797
6,122
4.3
76,059
52,243
6,459
3.9
80,818
61,193
6,186
3.2
4
4
6,118
5.9
Sources:
1 Florida Research & Economic Database (FRED). Information available for Indian River County Only.
z Indian River County School Board
3 Indian River County Property Appraiser
4 Information not yet available.
Note: School enrollment consists of Sebastian River High School, Sebastian River Middle School, Liberty Magnet,
Treasure Coast Elementary, Pelican Island Elementary, Sebastian Elementary, Storm Grove Middle School and Sebastian
Charter Junior High School.
146
Table 15 - Unaudited
Property
Total
State
Taxes
Taxable
Unemployment
Per
Property
Rate
Capita
Value 3
10.6
$ 157.50 $
986,748,734
8.6
139.28
877,458,060
6.9
145.18
820j699,121
5.6
145.68
885,009,868
4.8
158.88
966,812,200
4.8
170.38
1, 037, 687, 270
3.7
171.43
1,154, 592, 83 2
3.3
168.62
1,263,145,770
2.7
171.88
1, 383, 668, 734
7.2
150.72
1,482,054, 216
147
CITY OF SEBASTIAN, FLORIDA
Principal Employers
Current Year and Nine Years Ago
Employer
Indian River Medical Center (Healthcare)
School District of Indian River County (Government)
Indian River County (Government)
Publix Supermarkets (Food/Beverage)
Piper Aircraft, Inc. (Manufacturer)
Wal-Mart (Retail)
Sebastian River Medical Center (Healthcare)
Visiting Nurse Association (Healthcare)
John's Island (Residential/Resort)
Indian River Estates (Retirement/Life care)
City of Vero Beach (Government)
CVS Warehouse/Distribution (Distribution)
Disney Vero Beach (Resort Hotel)
Saint Edward's School (Education)
City of Sebastian (Government)
Captain Hirams (Restaurant/Resort)
Flight Safety International (Education)
B&W Quality Growers (Agricultural)
Vero Beach Hotel and Spa
Grand Harbor Management (Developer)
Medical Data Systems (Collection Agency)
Sun Ag, Inc. (Agriculture)
Employees
2,112
2,039
1,455
1,380
980
806
750
500
495
486
374
336
279
223
180
174
170
142
135
125
2020
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
13,141
Total Average County Employees 62,109
Source: Indian River County Community Development Report.
Note: Principal employers information available for Indian River County Only.
Percentage of
Total County
Employment
3.40 %
3.28
2.34
2.22
1.58
1.30
1.21
0.81
0.80
0.78
0.60
0.54
0.45
0.36
0.29
0.28
0.27
0.23
0.22
0.20
0.00
0.00
21.16
Employees
1,699
2,013
1,348
1,092
750
701
576
401
550
350
460
276
281
171
174
168
240
253
175
225
11,903
59,304
Table 16 - Unaudited
2011
Rank
2
1
3
4
5
6
7
10
8
11
9
13
12
19
18
20
15
14
17
16
Percentage of
Total County
Employment
2.86 %
3.39
2.27
1.84
1.26
1.18
0.97
0.68
0.93
0.59
0.78
0.47
0.47
0.00
0.29
0.29
0.28
0.40
0.00
0.43
0.30
0.38
20.06
148
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149
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 2020 2019 2018 2017
General government
City council
2.5
2.5
2.5
City manager
2.0
2.0
2.0
City clerk
2.5
2.5
2.5
City attorney
1.0
-
-
Administrative Services
6.0
6.0
6.0
Management information
5.0
5.0
5.0
Audio/visual
-
-
-
Human resources
-
-
-
Facilities maintenance
4.0
3.0
3.0
Community development
5.0
4.0
4.0
Public safety
Police
64.0
64.0
64.0
Building
7.5
7.5
7.5
Code enforcement
3.0
3.0
3.0
Transportation
Roads and drainage
10.0
9.5
9.5
Fleet management
3.0
3.5
3.5
Airport
1.5
1.5
2.0
Physical environment
Cemetery
2.0
2.0
2.0
Stormwater utility
13.5
14.5
14.5
Culture and recreation
Leisure services
16.0
21.0
21.0
Golf course
9.0
9.0
11.0
Total
157.5
160.5
163.0
Source: City of Sebastian, Florida 2011-2020
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
2.5
6.0
2.0
2.5
2.5
3.0
57.5
5.0
3.0
11.5
3.5
3.0
1.5
8.0
18.0
13.0
147.5
2016
2.5
2.5
3.0
4.0
2.0
1.0
3.5
2.0
57.5
5.0
3.0
11.0
3.5
1.0
2.0
9.0
19.0
10.0
141.5
150
Table 17 - Unaudited
Full-time Equivalent Employees as of September 30
2015 2014 2013 2012 2011
2.5
2.5
2.5
2.5
2.5
2.0
2.0
2.0
2.0
2.0
5.0
5.0
3.0
3.0
3.0
5.5
5.5
5.0
5.0
5.0
2.0
2.0
3.0
3.0
4.0
5.0
5.0
4.0
3.0
2.0
4.0
4.0
3.0
3.0
4.0
57.0
57.0
55.5
55.0
58.0
5.0
5.0
5.0
4.0
5.0
3.0
3.0
3.0
3.0
3.0
10.0
10.0
10.0
10.0
12.0
3.5
3.5
3.5
3.5
2.5
1.0
1.0
2.0
3.0
3.0
2.0
2.0
2.0
1.0
1.0
9.0
9.0
9.0
9.0
12.0
20.0
20.0
20.0
20.0
21.0
10.0
10.0
10.0
10.0
10.5
146.5
146.5
142.5
140.0
150.5
151
CITY OF SEBASTIAN, FLORIDA
Operating Indicators By Function/Program
For the Last Ten Fiscal Years
Fiscal Year
Function
2020
2019
2018
2017
General government
Number of annexations approved
1
Acres of annexed property
-
1,118
-
Purchase orders issued
350
293
355
289
Public Safety
Police
Physical arrests
397
525
516
356
Traffic violations
2,350
4,627
3,678
3,192
Parking violations
37
30
55
49
Building
New construction permits issued '
178
170
167
147
Estimated value of construction (in millions)
$ 46.9 $
42.4 $
39.8 $
37.2
Transportation
Road maintenance (man hours)
2,506
2,496
1,600
250
Asphalt for road maintenance (tons)
64
188
120
20
Physical environment
Cemetery
Cemetery internments
75
74
60
62
Grave deeds sold
62
59
30
29
Stormwater
Swales maintained (miles)
150
150
150
300
Ditches maintained (miles)
80
80
80
80
Road crossings maintained
50
50
50
70
Culture and recreation
Program participants
4,371
6,823
6,495
6,268
Number of discount cards
693
690
643
657
Number of golf course memberships
152
134
123
119
Average daily golf revenue
$ 4,179 $
3,837 $
3,100 $
3,100
Sources: City of Sebastian Police Department, Growth Management, Public
Works, Golf Course and Building Department.
1 New commercial and residential only.
152
R
2016
328
258
3,065
73
191
43.4 $
250
20
61
39
300
75
68
7,280
631
127
3,100 $
Fiscal Year
2015 2014 2013
254
287
3,725
60
142
40.6 $
200
10
71
43
300
75
68
7,647
653
93
3,653 $
242
347
4,587
29
175
40.0 $
200
20
67
47
280
50
68
7,571
653
84
3,500 $
2
4.00
233
440
4,491
80
170
35.9 $
300
30
65
38
280
50
50
8,113
710
86
3,569 $
Table 18 - Unaudited
2012
201
441
4,319
167
66
14.7 $
500
50
65
38
280
50
50
9,713
786
88
3,822 $
2011
228
500
5,941
242
51
10.2
700
50
54
34
280
50
40
8,649
735
94
3,787
153
CITY OF SEBASTIAN, FLORIDA
Capital Asset Statistics By Function/Program
For the Last Ten Fiscal Years
Fiscal Year
Function
2020
2019
2018
2017
2016
General Government
Square footage occupied
21,500
21,500
21,500
21,500
21,500
Departmental vehicles
3
3
6
6
4
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
78
71
71
70
Building inspector vehicles
4
4
4
4
4
Transportation
Streets (miles)
156
156
156
156
156
Streetlights '
1,100
1,100
1,100
1,100
1,085
Airport vehicles
3
3
5
4
4
Public service vehicles
17
16
13
12
12
Physical environment
Public service vehicles
18
18
18
19
17
Culture and recreation
Parks vehicles
8
8
5
5
6
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
9
-
12
12
Golf course vehicles
-
-
-
-
Sources: City of Sebastian Administrative Services Department and Park and Recreation Division
1 This number represents actual unmetered street lights in the City (source: Florida Power & Light - January billing).
154
Table 19 - Unaudited
Fiscal Year
2015
2014
2013
2012
2011
21,500
21,500
21,500
21,500
21,500
5
5
6
1
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
66
62
61
66
67
4
3
3
3
3
156
156
156
156
156
1,085
1,085
1,080
1,228
1,236
3
1
1
1
1
12
15
17
17
19
17
10
10
9
9
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
12
9
12
13
14
1
1
1
1
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INTERNAL CONTROL AND COMPLIANCE
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Rehmann
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
February 23, 2021
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, 2020, and the
related notes to the financial statements, which collectively comprise the City's basic financial
statements, and have issued our report thereon dated February 23, 2021.
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) as a basis for designing 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.
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Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may
exist that were not identified. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the financial statements. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
City's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
LLC
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Rehmann
INDEPENDENT AUDITORS'
MANAGEMENT LETTER
February 23, 2021
Honorable Mayor and
Members of City Council
City of Sebastian
Sebastian, Florida
Report on the Financial Statements
We have audited the financial statements of the City of Sebastian, Florida as of and for the fiscal year
ended September 30, 2020 and have issued our report thereon dated February 23, 2021.
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
February 23, 2021, should be considered in conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address findings and recommendations made in the preceding
annual financial audit report. There were no findings or recommendations in the preceding annual
financial audit report.
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Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in
this management letter, unless disclosed in the notes to the financial statements. The legal authority for
the City of Sebastian, Florida is disclosed in the notes to the financial statements. The City of Sebastian,
Florida's component unit, the Police Officer's Pension Plan, was established under Section 58-46 through
58-54 Code of Ordinances in October 1989.
Financial Condition and Management
Section 10.554(1)(i)5.a., Rules of the Auditor General, requires that we report the results of our
determination as to whether or not the City of Sebastian, Florida has met one or more of the conditions
described in Section 218.503(1), Florida Statutes, and identification of the specified condition(s) met. In
connection with our audit, we determined that the City of Sebastian, Florida did not meet any of the
conditions described in Section 218.503(1), Florida Statutes.
Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial
condition assessment procedures. It is management's responsibility to monitor the City of Sebastian,
Florida's financial condition, and our financial condition assessment was based in part on representations
made by management and the review of financial information provided by same.
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.
162
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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Rehmann
INDEPENDENT ACCOUNTANTS' REPORT
February 23, 2021
Honorable Mayor and
Members of City Council
City of Sebastian
Sebastian, Florida
We have examined the compliance of the City of Sebastian, Florida (the "City") with Sections 218.415,
28.35 and 28.36, Florida Statutes, during the year ended September 30, 2020. Management is
responsible for compliance with those requirements. Our responsibility is to express an opinion on the
City's compliance based on our examination.
Independent Accountants' Responsibility
Our responsibility is to express an opinion on the City's compliance with those requirements based on our
examination. Our examination was conducted in accordance with attestation standards established by
the American Institute of Certified Public Accountants. Those standards require that we plan and perform
the examination to obtain reasonable assurance about whether the City is in compliance with specified
requirements established by Florida Statute and performing such procedures as we considered necessary
in the circumstances.
We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for
our opinion. Our examination does not provide a legal determination on the City's compliance with
specified requirements.
Opinion
In our opinion, the City complied, in all material respects, with the aforementioned requirements for the
year ended September 30, 2020.
Purpose of this Report
This report is intended solely for the information of management, the City, the City Council and the
Florida Auditor General and is not intended to be and should not be used by anyone other than these
specified parties.
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