HomeMy WebLinkAbout2012 - 2013r
The Comprehensive Annual Financial Report cover shows photographs of
our new "Jolly Voyager Pirate Ship " Playground Equipment purchased for
the Creative Playground located at our Sebastian Barber Street Sports
Complex.
This equipment was recommended by the City of Sebastian Parks &
Recreation Advisory Board, and as depicted in the photograph is a cool
addition to our Sports Complex.
The total project improvements to the playground included:
➢ The pirate ship playground equipment
A Anew sidewalk
➢ Shade canopies
➢ Picnic tables and benches.
The total expenditure for this project was $106,1 S5 and was funded through
Recreational Impact Fees.
This playground is used on a daily basis by children of the community, and
is handicap accessible.
Concept provided .courtesy of:
Linda Kinchen, Public Works, City of Sebastian
Photograph provided courtesy of:
Barbara Brooke Reese, MIS, City of Sebastian
CITY OF SEBASTIAN, FLORIDA
CITY OF
S�BAST�N
HOME OF PELICAN ISLAND
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended September 30, 2013
CITY COUNCIL
Bob McPartlan Don Wright
Mayor Vice -Mayor
Andrea Coy
Council Member
Jerome Adams Jim Hill
Council Member Council Member
Prepared by: Administrative Services Department
CITY OF SEBASTIAN, FLORIDA
Table of Contents
Page
INTRODUCTORY SECTION
City Officials 2
Letter of Transmittal 3
Organizational Chart 8
GFOA Certificate of Achievement 9
FINANCIAL SECTION 11
Independent Auditors' Report
13
Management's Discussion and Analysis
17
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Position
31
Statement of Activities
32
Fund Financial Statements:
Balance Sheet - Governmental Funds
34
Reconciliation of Fund Balances for Governmental Funds to Net Position
of Governmental Activities
37
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds
38
Reconciliation of Net Changes in Fund Balance of Governmental
Funds to Change in Net Position of Governmental Activities
40
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual:
General Fund
41
Discretionary Sales Tax Fund
42
Riverfront Redevelopment Fund
43
Discretionary Sales Surtax Revenue Bonds 2003 Fund
44
Statement of Net Position - Proprietary Funds
45
Statement of Revenues, Expenses and Changes in Fund
Net Position - Proprietary Funds
46
Statement of Cash Flows - Proprietary Funds
47
Statement of Fiduciary Net Position
49
Statement of Changes in Fiduciary Net Position
50
Notes to Financial Statements
51
CITY OF SEBASTIAN, FLORIDA
Table of Contents
Page
Required Supplementary Information:
Schedule of Funding Progress - Single -employer Pension Trust Fund 82
Schedule of Employer Contributions - Single -employer Pension Trust Fund 82
Schedule of Funding Progress - Other Postemployment Benefits Plan 83
Schedule of Employer Contributions - Other Postemployment Benefits Plan 83
Combining and Individual Fund Financial Statements and Schedules:
Nonmajor Governmental Funds:
Combining Balance Sheet
86
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances
88
Schedule of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual:
Local Option Gas Tax
90
Parking In -Lieu of Fund
91
Recreation Impact Fee Fund
92
Stormwater Utility Fund
93
Law Enforcement Forfeiture Fund
94
Stormwater Utility Revenue Bonds 2003 Fund
95
Agency Fund:
Combining Statement of Changes in Assets and Liabilities 98
Other:
Capital Assets used in the Operations of Governmental Funds:
Comparative Schedule by Source 100
Schedule by Function and Activity 101
Schedule of Changes by Function and Activity 102
Internal Control and Compliance
Independent Auditor's Report on Internal Control over Financial Reporting
and on Compliance with Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Governmental Auditing Standards 105
Independent Auditors' Management Letter 107
CITY OF SEBASTIAN, FLORIDA
Table of Contents
Page
STATISTICAL SECTION (UNAUDITED) 109
Statistical Section Table of Contents
111
Financial Trends Information
Net Position by Component
112
Changes in Net Position
114
Fund Balances, Governmental Funds
118
Changes in Fund Balances, Governmental Funds
120
Program Revenues by Function/Program
122
Revenue Capacity Information
Tax Revenues by Source
124
Property Tax Rates ($1 per $1,000 of Taxable Value) - Direct and
Overlapping Governments
125
Assessed and Estimated Actual Value of Taxable Property
126
Principal Property Taxpayers
128
Property Taxes, Levies and Collections
129
Debt Capacity Information
Ratio of Outstanding Debt by Type
130
Ratio of Net General Bonded Debt to Estimated Actual Value and Net
General Bonded Debt Per Capita
133
Computation of Legal Debt Margin for General Obligation Bonds
134
Pledged Revenue Coverage
136
Demographic and Economic Information
Demographic and Economic Statistics
138
Principal Employers
141
Operating Information
Full -Time Equivalent City Employees by Function/Program
142
Operating Indicators by Function/Program
144
Capital Asset Statistics by Function/Program
146
INTRODUCTORY SECTION
CITY OF SEBASTIAN, FLORIDA
CITY OFFICIALS
For the Year Ended September 30, 2013
Al Minner Sally A. Maio, MMC
City Manager City Clerk
Robert Ginsburg
City Attorney
DEPARTMENT HEADS
Michelle Morris Debra Krueger
Police Chief Administrative Service Director
Kenneth W. Killgore Jerry Converse
Finance Director Public Works Director
Wayne Eseltine Greg Gardner
Building Official Golf Course Director
Joseph Griffin
Community Development & Airport Director
ON
CFFY OF
SIEBAST"
ct.
HOME OF PELICAN ISLAND
February 19, 2014
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, 2013, as prepared by the City's Administrative Services department.
State law requires that every general-purpose local government publish within six months of the close
of each fiscal year a complete set of audited financial statements. This report is published to fulfill that
requirement for the fiscal year ended September 30, 2013.
Management assumes full responsibility for the completeness and reliability of the information
contained in this report, based on a comprehensive framework of internal control that is established for
this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective
is to provide reasonable, rather than absolute, assurance that the financial statements are free of any
material misstatements.
Chapter 218.39, Florida Statutes requires that the financial statements of the City of Sebastian be
audited by a certified public accountant selected by the City Council. The City's independent Certified
Public Accountants, Rehmann Robson, has issued an unqualified ("clean") opinion on the City of
Sebastian's financial statements for the year ended September 30, 2013. The independent auditors'
report is located on page 13, 14 and and 15. Management's discussion and analysis (MDEtA) immediately
follows the independent auditors' report and provides a narrative introduction, overview, and analysis
of the basic financial statements. The MDEtA complements this letter of transmittal and should be read
in conjunction with it.
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 Mackie family of
Miami and began the development of a planned community that is now the City of Sebastian.
The City has a population of 22,188 living in an area of approximately 14.6 square miles. The City is
empowered to levy a property tax on both real and personal property located within its boundaries. It
also is empowered by state statute to extend its corporate limits by annexation, which it has done from
time to time.
The City is a Florida municipal corporation with a five -member City Council. Council members serve a
two-year term. Annual elections are held on the first Tuesday following the first Monday in November
and two members are elected in even -numbered years and three members are elected in odd -numbered
years. Elections are non -partisan and at -large. Mayor and Vice Mayor are elected from among the
members of every newly seated Council at a Special meeting following the election each year. The City
has operated under a Council -City Manager form of government since 1989.
The City provides a wide range of services including general government administration, police
protection, the construction and maintenance of local roads, public works, recreational and cultural
activities, a golf course, a general aviation airport, and a building department to enforce building
codes.
This report includes all funds of the City. In evaluating the City as a reporting entity, we have included
all component units for which the City Council is financially accountable. The component units have
been blended with the financial statements presented for the Primary Government because the
component unit's governing body is the same as the City Council or because the component unit
exclusively serves the City. The blended component units are the Riverfront Redevelopment Agency and
the Sebastian Police Officer's Pension Trust Fund.
The Council is required to adopt a final budget no later than the close of the fiscal year. This annual
budget serves as the foundation for the City's financial planning and control. The budget is prepared by
fund, function (e.g., transportation), and department (e.g., public works). Shifts in appropriations
within fund totals may be done administratively on the authority of the City Manager. Total fund
appropriation changes and use of contingency appropriations must be approved by the City Council.
Local Economy
The region (which includes the City of Sebastian and the surrounding unincorporated area within the
same county) has a fluctuating labor force depending on agricultural demand and is a strong retirement
community. Although the labor force fluctuates, unemployment in the region steadily declined through
2006 but then increased for the next five years to a range of 11-14%. As of September 2013, the Florida
Research >t Economic Database reported an improved unemployment rate of 8.8%. The overall
unemployment rate for the area has historically been greater than that of the State of Florida. This high
number is representative of the general economic difficulties being experienced in the area and the
lack of job creation.
The largest major occupational group is Office and Administrative Support Occupations (24.7%),
followed by Sales and Related Occupations (17.3%) and Food Preparation and Serving Related
Occupations (12.4%). According to the U.S. Census Bureau (2000), 86% of the population age 25 or older
are high school graduates and 23.1 % hold a bachelor's degree or higher. The area median age for 2010
was 50.1 per the U.S Census Bureau and average wage is $34,684 per year, assuming a 40-hour work-
week, per the Florida Research It Economic Database. The geographical area of the City of Sebastian,
just north of the Treasure Coast, houses a number of high-tech industries including NASA and various
aerospace industry -related businesses. In the past, this attracted a workforce with a higher than
average education and technical skills to the vicinity but with the end of the Space Shuttle program,
the loss of these activities has affected job availability.
4
Long -Term Financial Planning
The voters of Indian River County in November 2003 extended the Infrastructure Sales Surtax in the
amount of $.01 per $1.00 sale for an additional fifteen years and seven months beginning in January
2004. This Infrastructure Sales Surtax is estimated to provide the City in excess of $40 million dollars
over the life of the extension for the City's emergency vehicle and capital improvement needs. In
addition, the City has funded a number of other capital projects with impact fees and has actively
pursued grant funding for some major transportation and environmental improvements. It has also
employed the use of a Community Redevelopment Agency that is funded by means of tax -increment
financing.
The millage was increased to 3.7166 for fiscal year 2013 to offset a 6.3% decline in taxable values and
shortfalls in collections of franchise and utility taxes. Construction activity increased with 170 permits
being issued for new construction in fiscal year 2013 with a value of $35.9 million compared just 66
permits being issued for new construction in fiscal year 2012 with a value of $14.7 million. The increase
is primarily attributed to the improved outlook for the housing market.
General Fund unassigned fund balance and amounts committed by the financial policies resolution
based on 30% of the General Fund expenditures budget, were 51% of the General Fund expenditures
budget. The City has been steadfast and refused to spend down these balances because the City
understands reliance on accumulated fund balances to fund operating expenditures is not a prudent
fiscal strategy. To this end, the budget for fiscal year 2014 was balanced without a reduction of fund
balances.
Major Initiatives
Administration
After receiving request for proposals, the City negotiated a new garbage franchise agreement that
resulted in lower rates and providing carts at no cost to the public. Additionally, the City contracted to
have an evaluation of its computer systems and received recommendations for necessary replacements
and upgrades. Also, the City successfully participated in rating surveillance activities by Fitch rating
service, which affirmed an AA- rating on the Discretionary Sales Tax Revenue Bonds and upgraded the
Stormwater Utilities Revenue Bonds from AA- to AA. During the budget process for fiscal year 2014, the
City managed to maintain the same millage, while ending furlough days and eliminating the annual
transfer from local option gas taxes to General Fund. By eliminating the annual transfer, the local
option gas taxes could be allocated for necessary roadway improvements.
Stormwater
The main focus of stormwater effort expended for the past fiscal year has continued to be on the City's
Stormwater Management Program, including capital projects, maintenance, citizen response and
education, and forward planning. In fiscal year 2007, the City began a program to upgrade the current
swale system by installing quarter -round piping, which has continued to be funded from discretionary
sales tax revenues. The City also started outsourcing the swale and ditch maintenance work to enable
City crews to focus on different stormwater maintenance practices. Operation and maintenance
activities are accounted for in General Fund, with about one-half of the costs offset by an annual
transfer from the Stormwater Utility Fund. Equipment replacements are being accounted for in the
Stormwater Utility Fund.
Traffic Et Transportation
The City continues working on transportation improvements. Matching funds for a grant have been
allocated from discretionary sales taxes for improvements to Tulip Drive. Funds have also been
allocated from discretionary sales taxes to realign Barber Street and from discretionary sales taxes and
the community redevelopment agency for enhancements to the "presidential streets" within the
community redevelopment agency area. Other projects being planned for future years include repairs to
the bridge on Barber Street, sidewalk repair and construction, plus street repaving.
Airport
The Sebastian Municipal Airport's infrastructure is being developed with the intent of attracting
economic development and stimulating the business climate in order to create jobs in the community.
In fiscal year 2014, a separate budget was once again approved for expenses made toward promoting
economic development. The current Master Plan serves as the guiding document for airport planning.
Land leases are a primary source of airport revenues and over 150 acres of property is available for
lease, for both aviation and non -aviation businesses. Also important are sales from a self -serve fueling
facility. The Airport's limited resources continue to be leveraged by aggressively seeking and obtaining
grants from the Florida Department of Transportation (FDOT) and Federal Aviation Administration (FAA)
for funding to develop the necessary infrastructure. Planned improvements in fiscal year 2014 include
constructing another hangar with grant funds matched by funds from discretionary sales taxes.
Public Safety
The Police Department continues to participate in the accreditation program offered by the commission
for Florida Law Enforcement Accreditation. The designation encourages the Police Department to
establish goals and objectives with provisions for periodic updating; constant reevaluation of whether
departmental resources are being employed in accordance with agency goals, objectives and mission;
constant reevaluation of departmental policies and procedures as documented in the department's
written directive system; to accommodate correction of internal deficiencies and inefficiencies before
they become public problems; and the opportunity to reorganize without the appearance of personal
attacks. Standards and performance measurements resulting from the accreditation process will
continue to guide both Sebastian Police Department and city administration in alleviating potentially
adverse conditions.
Culture Et Recreation
The City continued efforts to promote the "working waterfront" concept on the riverfront properties
that were purchased with grant funding and has amended a lease with a not -for -profit entity to advance
this effort. During fiscal year 2013, Parks and Recreation completed the purchase of new equipment for
the Creative Playground and installed new field lighting at the Barber Street Sports Complex multi -use
ball fields. It also initiated plans for work on the baseball dugouts and for constructing a tennis
wall/racquetball court.
6
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Sebastian for its
comprehensive annual financial report for the fiscal year ended September 30, 2012. This is a
prestigious national award -recognizing conformance with the highest standards for preparation of state
and local government financial reports. In order to be awarded a Certificate of Achievement, a
government must publish an easily readable and efficiently organized comprehensive annual financial
report. This report must satisfy both U.S. generally accepted accounting principles and applicable legal
requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our
current comprehensive annual financial report continues to meet the Certificate of Achievement
Program's requirements and we are submitting it to the GFOA to determine its eligibility for another
certificate.
The preparation of this report would not be possible without the dedicated service of the
Administrative Services department staff. Their efforts toward improving the accounting and financial
reporting systems has led to the improved quality of information reported to the City Council, State and
Federal agencies and the citizens of the City of Sebastian. We sincerely appreciate their contributions.
Respectfully submitted,
Joesph Griffin
Interim City Manager
Kenneth W. Killgore
Director of Finance
a
CITY OF SEBASTIAN, FLORIDA
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8
CITY OF SEBASTIAN, FLORIDA
GFOA Certificate of Achievement
G�
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Sebastian
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2012
Executive Director/CEO
.,
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Of
FINANCIAL SECTION
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`A
wR,ehmann
INDEPENDENT AUDITORS' REPORT
February 19,2014
Honorable Mayor and
Members of City Council
City of Sebastian
Sebastian, Florida
Report on the Financial Statements
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph:772-234-8484
Fx: 772-234-8488
www.rehmann.com
We have audited the accompanying financial statements of the governmental activities, the business -
type activities, each major fund, and the aggregate remaining fund information of the City of
Sebastian, Florida (the "City"), as of and for the year ended September 30, 2013, and the related
notes to the financial statements, which collectively comprise the City's basic financial statements as
listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Independent Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of
the financial statements.
13
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, the financial statements referred to previously present fairly, in all material respects,
the respective financial position of the governmental activities, the business -type activities, each
major fund, and the aggregate remaining fund information of the City of Sebastian, Florida as of
September 30, 2013, 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.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis and the Schedules of Funding Progress and Employer Contributions for the
pension and other postemployment benefit plans, as listed in the table of contents, be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of preparing
the information and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because
the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Sebastian, Florida's basic financial statements. The combining and
individual fund financial statements and schedules are presented for purposes of additional analysis and
are not a required part of the basic financial statements.
The combining and individual fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. The information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the information is fairly stated in all material respects in relation to
the basic financial statements as a whole.
14
The introductory section and statistical tables are presented for purposes or additional analysis and are
not a required part of the basic financial statements. Such information has not been subjected to the
auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not
express an opinion or provide any assurance on it.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated February 19,
2014, on our consideration of the City of Sebatian, 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.
15
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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
Since the Management's Discussion and Analysis (MDEtA) is designed to focus on the current years activities, resulting
changes and currently known facts, please read it in conjunction with the Transmittal Letter and the City's financial
statements.
Financial Highlights
The assets of the City exceeded its liabilities at the close of the fiscal year 2013 by $52,995,633 (net position). Of
this amount, $4,270,943 (unrestricted net position) may be used to meet the City's on -going obligations to citizens
and creditors.
The City's total net position increased by $1,005,061 resulting from an increase of $1,182,461 from governmental
activities and an decrease of $177,400 from business -type activities.
Governmental funds reported a combined ending fund balance of $12,030,610, a increase of $647,233 from the
prior year. Approximately 42% of this amount, $5,065,242 is unassigned and available for spending, an increase of
$336,742 from fiscal year 2012 due to total General Fund revenue and transfers being greater than expenditures
The Golf Course Fund reported an increase in the deficit in unrestricted net position, primarily due to an
unusually slow summer season. The Airport Fund unrestricted deficit is the result of investment in capital assets
that will ultimately be beneficial to its development and the City's economic growth. The Building Enterprise fund
reported an increase in net position, as a result of an improved levels of construction activity. All of the City's
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, cultural and recreation, and general administration.
The business -type activities of the City include the golf course, airport, and building operations.
18
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources
that have been segregated for specific activities or objectives. The City, like other state and local governments, uses
fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of
the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government -wide financial statements. However, unlike the government -wide financial
statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources,
as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful
in evaluating a government's near -term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government -wide financial statements. By doing so, readers may better understand the
long-term impact of the government's near -term financing decisions. Both the governmental fund balance sheet and
the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The City maintains fifteen individual governmental funds. Information is presented separately in the governmental
funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances
for the General Fund, Discretionary Sales Tax Fund, Riverfront Redevelopment Fund, Discretionary Sales Surtax
Revenue Bonds 2003 Fund, and General Capital Projects Fund all of which are considered to be major funds. Data from
the other ten governmental funds are combined into a single, aggregated presentation. Individual fund data for each
of these nonmajor governmental funds is provided in the form of combining statements and schedules elsewhere in
this report.
The City adopts an annual appropriated budget for its General Fund and special revenue funds. Budgetary comparison
statements have been provided for these funds to demonstrate compliance with this budget.
Proprietary Funds. The City maintains one type of proprietary funds. Enterprise funds are used to report the same
functions presented as business -type activities in the government -wide financial statements. The City uses enterprise
funds to account for the golf course, airport, and buildings department.
Proprietary funds provide the same type of information as the government -wide financial statements, only in more
detail. The proprietary fund financial statements provide separate information for the golf course, airport, and
buildings department, which are considered to be major funds of the City.
Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government -wide financial statements because the resources of
those funds are not available to support the City's own programs. The accounting used for fiduciary funds is much like
that used for proprietary funds.
Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding
of the data provided in the government -wide and fund financial statements.
Other Information. In addition to the basic financial statements and accompanying notes, this report also presents
certain required supplementary information.
Government -wide Financial Analysis
As previously stated, net position may serve over time as a useful indicator of a government's financial position. In the
case of the City, assets exceeded liabilities by $52,995,633 at the close of the most recent fiscal year.
19
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
Net Position
Governmental Activities
Business -type
Activities
Total
2013
2012
2013
2012
2013
2012
Current and other assets
$12,847,068
$11,784,974
$ 13,222
$ (99,954)
$12,860,290
$11,685,020
Capital assets, net
41,945,665
42,713,256
10,889,473
11,181,823
52,835,138
53,895,079
Total assets
54,792,733
54,498,230
10,902,695
11,081,869
65,695,428
65,580,099
Long-term liabilities
11,476,204
12,742,412
259,582
196,000
11,735,786
12,938,412
Other liabilities
860,900
482,650
103,109
168,465
964,009
651,115
Total liabilities
12,337,104
13,225,062
362,691
364,465
12,699,795
13,589,527
Net postion
Net investment in
capital assets
32,038,749
31,500,173
10,846,501
11,183,095
42,885,250
42,683,268
Restricted
5,839,440
6,192,777
-
-
5,839,440
6,192,777
Unrestricted
4,577,440
3,580,218
(306,497)
(465,691)
4,270,943
3,114,527
Total net position
$42,455,629
$41,273,168
$ 10,540,004
$10,717,404
$52,995,633
$51,990,572
A substantial portion of the City's net position, $42,885,250 (81 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 $5,839,440 (11 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
$4,270,943 (8.1 percent) to meet its ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position,
for the government as a whole and for its separate governmental activities. Unrestricted net position were negative
for business -type activities as a whole, but improved over the prior year. This was due to the substantial increase in
the building fund's revenues.
20
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
Revenues
Program revenues:
Charges for services
Operating grants
Capital grants
General revenues:
Property taxes
Other taxes
Intergovernmental
Other
Total revenues
Expenses
General government
Public safety
Physical environment
Transportation
Economic environment
Cultural and recreation
Interest and fiscal charges
Golf course
Airport
Building
Total expenses
Change in net position,
before transfers
Transfers
Change in net position
Net position, beginning
Change in Net Position
Governmental Activities Business -type Activities Total
2013 2012 2013 2012 2013 2012
$ 1,554,301 $ 1,224,609 $ 2,491,164 $ 2,305,916 $ 4,045,465 $ 3,530,525
332,627
187,333
-
6,563
332,627
193,896
770,123
791,265
230,868
150,083
1,000,991
941,348
3,221,304
3,063,495
-
-
3,221,304
3,063,495
5,123,046
4,852,413
5,123,046
4,852,413
2,063,450
1,934,733
2,063,450
1,934,733
1,508,832
1,408,235
4,665
4,125
1,513,497
1,412,360
14,573,683
13,462,083
2,726,697
2,466,687
17,300,380
15,928,770
2,784,485
2,640,677
-
2,784,485
2,640,677
4,928,203
5,025,274
4,928,203
5,025,274
2,039,380
2,007,902
2,039,380
2,007,902
1,845,429
1,800,432
1,845,429
1,800,432
155,214
170,960
155,214
170,960
1,232,345
1,239,512
1,232,345
1,239,512
368,432
562,496
368,432
562,496
-
-
1,377,039
1,394,731
1,377,039
1,394,731
1,146,905
1,166,588
1,146,905
1,166,588
417,887
397,295
417,887
397,295
13,353,488
13,447,253
2,941,831
2,958,614
16,295,319
16,405,867
1,220,195
14,830
(215,134)
(491,927)
(37,734)
22,489
37,734
(22,489)
1,182,461
37,319
(177,400)
(514,416)
1,005,061 (477,097)
1,005,061 (477,097)
of year, as restated 41,273,168 41,235,849 10,717,404 11,231,820 51,990,572 52,467,669
Net position end, of year $42,455,629 $41,273,168 $ 10,540,004 $10,717,404 $52,995,633 $51,990,572
The City's net position increased by $1,005,061 during the current fiscal year. The primary reason for the increase in
net position for governmental activities is related to an increase in program revenues and in general revenues. For
business -type activities, the decline in net position is related to expenses in excess of revenues but was less of a
decline than the prior year due to airport grants and much higher revenues from building permits.
`1
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
Governmental Activities. Governmental activities increased the City's net position by $1,182,461 as compared to the
prior year increase of $37,319. Key elements of this increase are as follows:
A decrease in expenses of $93,765
An increase in general revenues and transfers of $642,511
An increase in program revenues of $453,844
Expenses and Program Revenues - Governmental Activities
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
General Public safety
government
Intergoverr
14%
Other tax(
43%
■ Expenses
■ Program Revenues
Physical Transportation Economic Cultural and Interest and
environment environment recreation fiscal charges
Revenues by Source - Governmental Activities
r)tk-,
ing grants
2%
)ital grants
5%
Property taxes
22%
f►�]
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
Business -type Activities. Business -type activities decreased the City's net position by $177,400, as compared to the
prior year decrease of $514,416. The key elements of this decrease are as follows:
A decrease in expenses of $16,783
An increase in general revenues and transfers of $60,763
An increase in program revenues of $259,470, largely due to building permit activity.
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
Expenses and Program Revenues - Business -type Activities
Golf course
Capital gray
8%
Airport
■ Expenses
■ Program Revenues
Em
Building
Revenues by Source - Business -type Activities
Operating grants and
Charges for services
92%
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
$12,030,610, an increase of $647,233 from the prior year. Of this amount, 42 percent ($5,065,242) constitutes
unassigned fund balance, which is available for spending at the City's discretion. The remainder of fund balance is
assigned to indicate that it is not available for new spending because it 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 $5,065,242 while total fund balance amounted to $5,469,458. 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 52.3 percent of total General Fund expenditures, while total
fund balance represents 56.5 percent of that same amount.
The fund balance of the City's General Fund increased by $467,286 during the current fiscal year. Key factors in this
change are as follows:
Property tax revenues increased by $146,555 due to additions to taxable property values.
Charges for services increased by $79,995
Intergovernmental increased by $136,760
Public utility taxes increased by $146,881
All other revenues increased by $150,406
Transfers in from other funds decreased by $127,317 because transfers from the local option gas tax fund were
discontinued.
Expenditures decreased $97,893 due to reductions in employees and cuts in other operating accounts.
The General Fund budgeted for no change in fund balance. The actual increase in fund balance was $467,286.
Significant changes in budgetary variances are as follows:
Property tax revenues had a positive budgetary variance of $25,227, with over 96% of the tax roll being collected.
Only 95% of the tax roll is budgeted as being collected, per Florida statutes.
Intergovernmental revenue had a positive budgetary variance from higher than anticipated receipts from
municipal revenue sharing and local half -cent sales taxes transmitted by the state.
Investment earnings were over -estimated as a result of low interest rates.
General Fund expenditures had an overall positive budgetary variance of $270,827 of which the greatest portions
related to general government, ($88,709), physical environment ($94,572), and culture and recreation ($52,377).
Unanticipated capital purchases were necessary in several departments, however these were covered by savings
from operating accounts.
The Discretionary Sales Tax revenue special revenue fund has a total fund balance $2,707,722, an increase from the
$2,015,572 total fund balance of the prior year. Funds are intentionally being accumulated for projects that are
planned in future years.
24
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
The Riverfront Redevelopment Fund ended the year with $554,938 in fund balance, as a result of the transfers out for
pending construction projects being less than budgeted.
The Discretionary Sales Surtax Revenue Bonds 2003 Fund has a total fund balance of $1,554,867, all of which is
restricted for debt service on the bonds.
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 $291,578, while the
unrestricted net position (deficit) amounted to ($311,764). Compared to the prior year in the same category, net
position declined from the prior year and the unrestricted net position (deficit) was increased by $158,254 from the
prior year. This is mainly because of a reduction in revenues from golf course fees.
The total net position of the airport fund at the end of the fiscal year amounted to $9,466,735, while the unrestricted
net position (deficit) amounted to ($819,396). Compared to the prior year in the same category, net position has
decreased by $391,525 while the unrestricted net position (deficit) was reduced by $14,848. The reduction in the
unrestricted net position (deficit) is mainly due to a reduction in amounts invested in capital assets resulting from
depreciation expense.
The total net position of the building fund at the end of the fiscal year amounted to $781,691, all of which was
unrestricted net position. This is an increase of $288,052 from the prior year, which was primarily due to increases in
operating revenue from building permit fees.
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
During the year, the City Council revised the City budget three times. These budget amendments fall into two main
categories. The first category includes adjustments for unanticipated revenues. The second category includes
supplemental appropriations to cover unanticipated items or project costs that were above or below budgeted
amounts.
$28,481 amendment to set aside prior year savings from the Health Reimbursement Account.
$56,436 amendment to set up golf course accounts for loan payments and equipment purchases.
$4,250 adjustment to apply insurance reimbursement for damages to the repair of the cemetary arches.
$202,173 amendment to appropriate funds to purchase a wheeled excavator.
$23,533 adjustment for auction and insurance procees that were applied to auction fees and insurance claims.
25
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
$3,925 adjustment to use donation revenues to replace a sick K-9.
$145,961 adjustment for the State's distribution to the police pension fund.
$275,000 amendment to reflect additional FAA funding for the Main Street access road project.
$3,000 adjustment to create a budget for the senior resources survey.
$18,057 adjustments to cover shortfalls in various golf course accounts.
$14,500 amendment to fund work on a sign inventory.
$36,173 amendment to use savings from a vacant facilities maintenance position and expected increase in
franchise fee revenues to fund the Englar Street paving project.
$25,000 amendment to establish a budget for building a playground at the Community Center.
$8,000 adjustment to add funds to the Schumann Park improvements project in order to properly remove restroom
demolition debris and close the septic tank.
$87,986 reduction in funding required for road paving, parking and handicap pier projects.
$7,040 allocation for the Barber Street Bridge Project to cover cost that were higher than budgeted.
$61,342 reduction to the creative playground, multi -use field lighting, and volleyball court lighting projects that
were completed for less costs than budgeted.
$491,845 adjustment to reflect cancellation of the CavCorp Project funding in the DST fund.
$2,976 reduction to the Airport survey and runway marking project completed at less costs than budgeted.
$213 reduction to the FDLE firewall project that was completed at a lower cost than budgeted.
$7,789 reduction to the allocation for quarter -round work completed in the current year.
$109,537 adjustment to apply revenue received in excess of budgeted amounts to cover department overages
related to departing employees, new hires, police overtime, police gas and oil and planning department site plan
reviews.
During the fiscal year, total General Fund actual revenues were more than final amended budgetary estimates and
total General Fund actual expenditures were less than the final amended budgetary estimates. The overage in
anticipated revenues was mainly due to greater than expected receipts from the state. A positive overall variance on
revenues and expenditures resulted in a lower draw on existing fund balances than was initially anticipated.
Capital Asset and Debt Administration
Capital Assets. At the end of fiscal year 2013 the City had $52,835,138 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 $1,059,941, or 2.5%, over
last year. The following table illustrates the changes in capital assets.
Capital Assets (Net of Depreciation)
Governmental Activities Business -type Activities Total
2013
2012
2013
2012
2013
2012
Land
$ 8,319,588
$ 8,007,437
$ 9,060
$ 9,060
$ 8,328,648
$ 8,016,497
Buildings
8,244,472
8,537,630
5,100,277
5,269,576
13,344,749
13,807,206
Improvements
3,608,344
3,606,536
977,725
1,092,661
4,586,069
4,699,197
Equipment
1,234,547
1,177,489
247,041
107,650
1,481,588
1,285,139
Infrastructure
20,417,972
21,220,735
4,479,903
4,699,834
24,897,875
25,920,569
Construction in progress
120,742
163,429
75,467
3,042
196,209
166,471
Total capital assets, net
$41,945,665
$42,713,256
$ 10,889,473
$11,181,823
$52,835,138
$53,895,079
26
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
Governmental activities had the following major changes during the fiscal year:
An increase in land, mainly due to property purchased by the Cemetary fund.
A decrease in buildings mainly due to the amount of depreciation.
An increase in improvements mainly due to amenities added at the City's parks.
An increase in equipment mainly due to purchases of a new excavation equipment.
An decrease in infrastructure mainly due to stormwater improvements offset by depreciation.
Business -type activities had the following major changes during the fiscal year:
An increase in machinery and equipment due to purchases by the golf course and the airport.
An increase in infrastructure due to improvements made at the airport.
Long -Term Debt. At the end of the current fiscal year, the City had total debt outstanding of $11,735.786 Of this
amount, $3,920,786 (33.41 %) comprises debt not backed by the full faith and credit of the government. The
remainder of the City debt represents bonds secured solely by specified revenue sources (i.e., revenue bonds).
General Obligation and Revenue Bonds
Governmental Activities Business -type Activities Total
2013
2012
2013
2012 2013
2012
Revenue bonds
$ 7,815,000
$ 8,925,000 $
-
$ $ 7,815,000
$ 8,925,000
Notes payable
2,099,000
2,296,000
42,972
2,141,972
2,296,000
9,914,000
11,221,000
42,972
9,956,972
11,221,000
Discount on bond payable
(7,084)
(7,917)
-
(7,084)
(7,917)
Compensated absences
1,463,208
1,435,586
216,610
196,000 1,679,818
1,631,586
Termination benefits
14,880
2,543
-
- 14,880
2,543
Pollution remedication
91,200
91,200
-
- 91,200
91,200
Total
$11,476,204
$12,742,412 $
259,582
$ 196,000 $11,735,786
$12,938,412
The City's total + debt decreased by $1,202,626 (10.25 %) during the current fiscal year. The net decrease was mainly
attributable to annual principal payments.
The Infrastructure Sales Surtax Revenue Bonds, Series 2003 and Series 2003A and the Stormwater Utility Revenue
Bonds, Series 2003 were initially insured by AAA rated insurance agencies and rated AAA, which is the highest rating
given by rating agencies. However, ratings on the insurance agencies have been downgraded. All of the City's other
debt, primarily notes and a capital lease, are not rated. Other obligations of the City include accrued vacation pay and
sick leave.
Economic Factors and Next Year's Budget and Rates
The City's elected and appointed officials considered many factors when setting the fiscal year 2014 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 2013 was 8.8
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.
27
CITY OF SEBASTIAN, FLORIDA
Management's Discussion and Analysis
The City experienced only a 0.6% decline in property values for 2014. The millage rate was maintained at 3.7166,
which provided sufficient funds to balance total revenues to total expenditures and to eliminate the mandatory twelve
furlough days that have been required over the past four years. To address another important area, staffing was
increased for the management information systems and the police dispatch divisions. It is anticipated that the added
personnel will allow increased attention to these important operations in 2014.
The Golf Course reported reported less revenues from fees in 2013 due to a reduced amount of play. It was necessary
to make a temporary interfund loan from General Fund at the end of the year to provide sufficient cash flow. It is
expected that with a reasonably good level of revenues in the coming year, the current loan can be repaid.
General Fund also made a temporary interfund loan to the Airport in order to provide sufficient cash flow. It is
expected that repayment will be made in the coming year. Sizable operating losses are primarily the result of
depreciation on capital assets.
With a large increase in building permit fees and only a small increase in operating expenses, the Building Enterprise
Fund reported a positive change in net position. There are some signs of renewed activity in the local housing market
which are encouraging.
Requests for Information
This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general
overview of the City's finances and to show the City's accountability for the money it receives. If you have questions
about this report or need additional information, contact the Administrative Services Department at City of Sebastian,
1225 Main Street, Sebastian, Florida 32958.
28
BASIC FINANCIAL STATEMENTS
29
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30
CITY OF SEBASTIAN, FLORIDA
Statement of Net Postion
September 30, 2013
Primary Government
Governmental
Business -type
Activities
Activities
Total
Assets
Cash and cash equivalents
$ 5,183,777
$ 532,205 $
5,715,982
Temporarily restricted cash and cash equivalents
2,449,827
-
2,449,827
Investments
2,667,285
454,770
3,122,055
Permanently restricted investments
256,789
-
256,789
Receivables, net
889,866
58,514
948,380
Internal balances
1,075,061
(1,075,061)
-
Prepaid items
105,463
14,187
119,650
Inventories
63,101
27,005
90,106
Net pension asset
140,836
-
140,836
Deposits held in escrow
15,063
1,602
16,665
Capital assets not being depreciated
8,440,330
84,527
8,524,857
Capital assets being depreciated, net
33,505,335
10,804,946
44,310,281
Total assets
54,792,733
10,902,695
65,695,428
Liabilities
Accounts payable and other current liabilities
621,668
35,749
657,417
Accrued interest payable
160,980
115
161,095
Unearned revenues
53,954
66,270
120,224
Long-term liabilities:
Due within one year
1,460,260
18,622
1,478,882
Due in more than one year
10,015,944
240,960
10,256,904
Net other postemployment benefits liability
24,298
975
25,273
Total liabilities
12,337,104
362,691
12,699,795
Net position
Net investment in capital assets
Restricted for:
Debt service
Perpetual care:
Nonexpendable
Special revenue uses:
Infrastructure improvements
Redevelopment expenditures
Stormwater expenditures
Law enforcement events
Unrestricted (deficit)
Total net position
32,038,749 10,846,501 42,885,250
1,577,823 - 1,577,823
771,327 771,327
2,744,621
2,744,621
554,938
554,938
94,420
94,420
96,311
96,311
4,577,440
(306,497) 4,270,943
$ 42,455,629 $ 10,540,004 $ 52,995,633
The accompanying notes are an integral part of these basic financial statements.
31
CITY OF SEBASTIAN, FLORIDA
Statement of Activities
For the Year Ended September 30, 2013
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
$ 2,784,485 $
4,928,203
2,039,380
1,845,429
155,214
1,232,345
368,432
Program Revenues
Operating Capital Net
Charges Grants and Grants and (Expense)
for Services Contributions Contributions Revenue
314,158 $
67,297
1,101,864
70,982
13,353,488
1,554,301
1,377,039
1,302,441
1,146,905
481,759
417,887
706,964
2,941,831
2,491,164
$ 16,295,319
$ 4,045,465 $
157,141 $ $ (2,313,186)
166,012 (4,694,894)
- (937,516)
9,474 551,239 (1,284,716)
- - (155,214)
218,884 (942,479)
- (368,432)
332,627 770,123 (10,696,437)
(74,598)
230,868 (434,278)
- 289,077
- 230,868 (219,799)
332,627 $ 1,000,991 $ (10,916,236)
continued...
32
CITY OF SEBASTIAN, FLORIDA
Statement of Activities
For the Year Ended September 30, 2013
Changes in net position
Net revenue (expense)
General revenues:
Property taxes, levied for general purposes
Sales and use taxes
Franchise fees
State shared revenues not restricted to specific programs
Interest earnings
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
Net position, beginning of year, as restated (note 17)
Net position, end of year
Primary Government
Governmental Business -type
Activities Activities Total
$ (10,696,437) $ (219,799) $ (10,916,236)
3,221,304
3,221,304
5,123,046
5,123,046
1,118,886
1,118,886
2,063,450
-
2,063,450
74,650
4,391
79,041
315,296
274
315,570
(37,734)
37,734
-
11,878,898
42,399
11,921,297
1,182,461
(177,400)
1,005,061
41,273,168
10,717,404
51,990,572
$ 42,455,629 $ 10,540,004 $ 52,995,633
concluded
The accompanying notes are an integral part of these basic financial statements.
33
CITY OF SEBASTIAN, FLORIDA
Balance Sheet
Governmental Funds
September 30, 2013
Assets
Cash and cash equivalents
Investments
Accounts receivable, net
Due from other funds
Due from other governments
Deposits held in escrow
Inventories
Prepaid items
Advance to other funds
Total assets
Discretionary
Sales Surtax
Discretionary Riverfront Revenue Bonds
General Sales Tax Redevelopment 2003
$ 3,037,077 $ 1,057,230 $ 462,367 $ 1,554,867
1,590,893 858,323 100,984 -
300,023 - -
330,050 -
251,604 239,658
15,063 -
63,101
105,463 -
200,000 552,511 - -
$ 5,893,274 $ 2,707,722 $ 563,351 $ 1,554,867
Liabilities
Accounts payable and accrued liabilities
$ 262,471
$ $
8,413 $
Due to other funds
-
-
Due to other governments
107,391
Unearned revenue
53,954
-
Total liabilities
423,816
8,413
Fund balances
Nonspendable
368,564
552,511
- -
Restricted
28,632
2,155,211
554,938 1,554,867
Committed
-
-
- -
Assigned
7,020
Unassigned
5,065,242
-
- -
Total fund balances
5,469,458
2,707,722
554,938 1,554,867
Total liabilities and fund balances
$ 5,893,274
$ 2,707,722 $
563,351 $ 1,554,867
The accompanying notes are an integral part of these basic financial statements.
34
General
Nonmajor
I
Total
Capital
Governmental
Governmental
Projects
Funds
Funds
$ 202,173
$ 1,319,890
$ 7,633,604
-
373,874
2,924,074
-
300,023
-
330,050
98,581
589,843
-
15,063
63,101
105,463
752,511
$ 202,173 $ 1,792,345 $ 12,713,732
$ 202,173 $ 41,220 $ 514,277
- 7,500 7,500
- 107,391
53,954
202,173 48,720 683,122
771,327 1,692,402
382,934 4,676,582
589,364 589,364
- 7,020
5,065,242
- 1,743,625 12,030,610
$ 202,173 $ 1,792,345 $ 12,713,732
35
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36
CITY OF SEBASTIAN, FLORIDA
Reconciliation
Fund Balances for Governmental Funds
to Net Position of Governmental Activities
September 30, 2013
Fund balances - total governmental funds $ 12,030,610
Amounts reported for governmental activities in the statement of
net position are different because:
Capital assets used in governmental activities are not financial resources,
and therefore are not reported in the fund statement.
Capital assets not being depreciated 8,440,330
Capital assets being depreciated, net 33,505,335
Some items are recorded as revenues and expenditures in the fund statements when paid or when
received. These items are recorded on the government -wide statements when incurred in the case of
expenditures and when revenues are earned.
Net pension asset 140,836
Certain liabilities, such as bonds payable, are not due and payable
in the current period, and therefore are not reported in the funds.
Bonds and notes payable
(9,906,916)
Compensated absences
(1,463,208)
Termination benefits
(14,880)
Net other post employment benefits liability
(24,298)
Contamination liability
(91,200)
Accrued interest on long-term debt
(160,980)
Net position of governmental activities $ 42,455,629
The accompanying notes are an integral part of these basic financial statements.
37
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2013
Discretionary
Sales Surtax
Discretionary
Riverfront
Revenue Bonds
General
Sales Tax
Redevelopment
2003
Revenues
Taxes:
Property
$ 2,954,981
$
$ 266,323
$
Public utility
2,534,434
-
Sales
-
2,587,903
Motor fuel
-
-
Franchise fees
1,118,886
Licenses and permits
45,500
Intergovernmental
2,215,445
Impact fees
-
Chargesforservices
370,905
Fines
60,190
-
-
-
Investment earnings
36,397
26,112
1,513
4,818
Contributions and donations
22,406
-
-
-
Otherrevenues
293,695
-
6,000
-
Total revenues
9,652,839
2,614,015
273,836
4,818
Expenditures
Current:
General government
2,445,567
-
2,326
-
Public safety
4,423,281
-
Physical environment
933,957
Transportation
939,606
-
Economic environment
-
122,730
Culture and recreation
845,351
-
-
Debt service:
Principal
-
820,000
Interest and fiscal charges
-
-
198,157
Capital outlay
99,629
6,562
-
Total expenditures
9,687,391
-
131,618
1,018,157
Revenues over(under)expenditures
(34,552)
2,614,015
142,218
(1,013,339)
Other financing sources (uses)
Transfers in
565,399
-
-
1,012,795
Transfers out
(63,561)
(1,921,865)
(66,175)
-
Total other financing sources (uses)
501,838
(1,921,865)
(66,175)
1,012,795
Net changes in fund balances
467,286
692,150
76,043
(544)
Fund balances, beginning of year
5,002,172
2,015,572
478,895
1,555,411
Fund balances, end of year
$ 5,469,458
$ 2,707,722
$ 554,938
$ 1,554,867
The accompanying notes are an integral part of
these basic financial statements.
38
General
Nonmajor
Total
Capital
Governmental
Governmental
Projects
Funds
Funds
$
$ 3,221,304
2,534,434
2,587,903
551,239
551,239
-
1,118,886
-
45,500
148,752
47,198
2,411,395
-
169,000
169,000
1,091,617
1,462,522
-
60,190
9,571
78,411
-
22,406
15,601
315,296
148,752 1,884,226 14,578,486
2,447,893
1,719
4,425,000
141,205
1,075,162
219,339
1,158,945
-
122,730
2,430
847,781
487,000
1,307,000
-
195,290
393,447
478,054
1,531,316
2,115,561
478,054
2,578,299
13,893,519
(329,302)
(694,073)
684,967
329,302
1,691,453
3,598,949
-
(1,585,082)
(3,636,683)
329,302
106,371
(37,734)
-
(587,702)
647,233
2,331,327
11,383,377
$
1,743,625 $
12,030,610
39
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, 2013
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense.
Capital outlay
Donation of land
Depreciation expense
Loss on the sale of capital assets
Some interest revenues reported in the statement of activities do not constitute current
financial resources, therefore, are not reported as revenues in governmental funds
Interest revenues
Bond proceeds provide current financial resources to governmental funds
in the period issued, but issuing bonds increases long-term liabilities in the
statement of net position. Repayment of bond principal is an expenditure in the
governmental funds, but the repayment reduces long-term liabilities in the
statement of net position.
Principal payments on long-term liabilities
Some expenses reported in the statement of activities do not require the use of
current financial resources and therefore are not reported as expenditures in
governmental funds.
Change in accrued interest payable on long-term debt
Amortization of bond discounts
Change in the accrual for compensated absences
Change in the accrual for pension benefits
Change in the accrual for other postemployment benefits
Change in the accrual for termination benefits
Change in net position of governmental activities
The accompanying notes are an integral part of these basic financial statements.
$ 647,233
2,115,561
12,160
(2,871,005)
(24,307)
(3,761)
1,307,000
22,798
(833)
(27,622)
8,703
8,871
(12,337)
$ 1,182,461
40
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - General Fund
For the Year Ended September 30, 2013
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Taxes:
Property
$ 2,929,754
$ 2,929,754
$ 2,954,981
$ 25,227
Public utility
2,395,600
2,483,842
2,534,434
50,592
Franchise fees
1,141,500
1,154,979
1,118,886
(36,093)
Licenses and permits
28,950
28,950
45,500
16,550
Intergovernmental
1,919,700
2,065,661
2,215,445
149,784
Charges for services
373,347
380,899
370,905
(9,994)
Fines
70,500
70,500
60,190
(10,310)
Investment earnings
70,500
70,500
36,397
(34,103)
Contributions and donations
19,000
22,925
22,406
(519)
Otherrevenues
160,863
216,889
293,695
76,806
Total revenues
9,109,714
9,424,899
9,652,839
227,940
Expenditures
Current:
General government
2,499,752
2,534,276
2,445,567
(88,709)
Public safety
4,199,206
4,435,934
4,423,281
(12,653)
Physical environment
1,008,033
1,028,529
933,957
(94,572)
Transportation
950,306
943,107
939,606
(3,501)
Culture and recreation
881,728
897,728
845,351
(52,377)
Capital outlay
123,200
118,644
99,629
(19,015)
Total expenditures
9,662,225
9,958,218
9,687,391
(270,827)
Revenues over(under)expenditures
(552,511)
(533,319)
(34,552)
498,767
Other financing sources
Transfers in
565,399
596,880
565,399
(31,481)
Transfers out
(12,888)
(63,561)
(63,561)
Total other financing sources
552,511
533,319
501,838
(31,481)
Net changes in fund balances
-
-
467,286
467,286
Fund balances, beginning of year
5,002,172
5,002,172
5,002,172
-
Fund balances, end of year
$ 5,002,172
$ 5,002,172
$ 5,469,458
$ 467,286
The accompanying notes are an integral part of these basic financial statements.
Cy
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Discretionary Sales Tax Special Revenue Fund
For the Year Ended September 30, 2013
Revenues
Taxes:
Sales
Investment earnings
Total revenues
Other financing sources (uses)
Transfers out
Net changes in fund balance
Fund balance, beginning of year
Fund balance, end of year
Actual Over
Original
Fina
(Under) Final
Budget
Budg
Actual
Budget
$ 2,414,900
$ 2,414,900
$ 2,587,903
$ 173,003
21,975
21,975
26,112
4,137
2,436,875
2,436,875
2,614,015
177,140
(2,470,621)
(2,103,679)
(1,921,865)
181,814
(33,746)
333,196
692,150
358,954
2,015,572
2,015,572
2,015,572
-
$ 1,981,826
$ 2,348,768
$ 2,707,722
$ 358,954
The accompanying notes are an integral part of these basic financial statements.
E,PA
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, 2013
Revenues
Taxes:
Property
Investment earnings
Otherrevenues
Total revenues
Expenditures
Current:
General government
Economic environment
Capital outlay
Total expenditures
Revenues over (under) expenditures
Other financing uses
Transfers out
Net changes in fund balance
Fund balance, beginning of year
Fund balance, end of year
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
$ 264,809
$ 264,809
$ 266,323
$ 1,514
3,064
3,064
1,513
(1,551)
-
-
6,000
6,000
267,873
267,873
273,836
5,963
-
-
2,326
2,326
150,040
144,540
122,730
(21,810)
-
5,500
6,562
1,062
150,040
150,040
131,618
(18,422)
117,833
123,333
142,218
24,385
(310,000)
(310,000)
(66,175)
243,825
(192,167)
(186,667)
76,043
268,210
478,895
478,895
478,895
-
$ 286,728 $
292,228 $
554,938 $
268,210
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 - Discretionary Sales Surtax Revenue Bonds 2003 Debt Service Fund
For the Year Ended September 30, 2013
Revenues
Investment earnings
Expenditures
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Revenues over (under) expenditures
Other financing sources
Transfers in
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
$ 22,365 $ 22,365 $ 4,818 $ (17,547)
820,000
820,000
820,000
-
198,123
198,123
198,157
34
1,018,123
1,018,123
1,018,157
34
(995,758)
(995,758)
(1,013,339)
(17,581)
994,621
994,621
1,012,795
18,174
(1,137)
(1,137)
(544)
593
1,555,411
1,555,411
1,555,411
-
$ 1,554,274 $
1,554,274
$ 1,554,867 $
593
The accompanying notes are an integral part of these basic financial statements.
44
CITY OF SEBASTIAN, FLORIDA
Statement of Net Position
Proprietary Funds
September 30, 2013
Assets
Current assets:
Cash and cash equivalents
Investments
Accounts receivable
Due from other governments
Inventory
Deposits held in escrow
Prepaid items
Total current assets
Noncurrent assets:
Capital assets:
Land
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Construction in process
Less accumulated depreciation
Total noncurrent assets
Total assets
Liabilities
Current liabilities:
Accounts payable and accrued liabilities
Due to other funds
Due to other governments
Unearned revenues
Current portion of long-term debt
Accrued compensated absences
Total current liabilities
Non -current liabilities:
Compensated absences, net of current portion
Advance from other fund
Longterm debt
Net other postemployment benefit obligation
Total non -current liabilities
Total liabilities
Net position
Net investment in capital assets
Unrestricted (deficit)
Total net position
Business -type Activities - Enterprise Funds
Golf
Nonmajor -
Course
Airport
Building
Total
$ 1,417
$ 546
$ 530,242 $
532,205
86,605
-
368;165
454,770
274
4,377
-
4,651
-
53,863
53,863
12,122
14,883
-
27,005
493
616
493
1,602
3,879
7,797
2,511
14,187
104,790
82,082
901,411
1,088,283
-
9,060
-
9,060
331,228
6,009,116
6,340,344
264,034
1,644,127
-
1,908,161
376,782
651,244
56,150
1,084,176
1,100,951
6,589,776
-
7,690,727
-
75,467
-
75,467
(1,469,653)
(4,692,659)
(56;150)
(6,218,462)
603,342
10,286,131
-
10,889,473
708,132
10,368,213
901,411
11,977,756
12,239
5,124
7,951
25,314
237,000
85,550
-
322,550
5,607
583
4,360
10,550
57,593
50
8,627
66,270
18,613
-
-
18,613
9
9
331,061
91,307
20,938
443,306
60,838
57,505
98,258
216,601
-
752,511
-
752,511
24,359
-
-
24,359
296
155
524
975
85,493
810,171
98,782
994,446
416,554
901,478
119,720
1,437,752
603,342 10,286,131
(311,764) (819,396)
$ 291,578 $ 9,466,735 $
The accompanying notes are an integral part of these basic financial statements.
- 10,889,473
781,691 (349,469)
781,691 $ 10,540,004
45
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds
For the Year Ended September 30, 2013
Operating revenues
Charges for fees and rents:
Building permit fees
Golf course fees
Rents
Otherrevenues
Total operating revenues
Operating expenses:
Salaries, wages and employee benefits
Contractual services, materials and supplies
Depreciation
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses)
Interest income
Interest expense
Gain on disposal of capital assets
Total nonoperating revenues (expenses)
Income (loss) before capital contributions
Capital contributions
Transfers in
Change in net position
Net position, beginning of year, as restated (Note 17)
Net position, end of year
$
Business -type Activities - Enterprise Funds
Golf Nonmajor -
Course Airport Building Total
1,262,468 -
29,459 359,422
10,514 122,337
1,302,441 481,759
287,971 170,147
1,002,824 299,356
86,244 655,811
1,377,039 1,125,314
(74,598) (643,555)
397
-
(16,572)
274
671
(16,572)
(73,927)
(660,127)
230,868
37,734
(73,927)
(391,525)
365,505
9,858,260
291,578 $
9,466,735 $
The accompanying notes are an integral part of these basic financial statements.
706,964 $ 706,964
- 1,262,468
388,881
132,851
706,964 2,491,164
334,493 792,611
88,413 1,390,593
- 742,055
422,906 2,925,259
284,058 (434,095)
3,994
4,391
-
(16,572)
-
274
3,994
(11,907)
288,052
(446,002)
-
230,868
-
37,734
288,052
(177,400)
493,639
10,717,404
781,691
$ 10,540,004
46
CITY OF SEBASTIAN, FLORIDA
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2013
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
Proceeds from issuance of long-term debt
Repayment of long term debt
Interest paid on advance from other fund
Cash receipts from other funds
Net cash provided (used) by noncapital
financing activities
Cash flows from capital and related
financing activities
Acquisition and construction of capital assets
Proceeds from sale of assets
Receipts from capital contributions
Net cash provided (used) by capital and
related financing activities
Cash flows from investing activities
Sale (purchase) of investments
Interest received on investments
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
Nonmajor -
Course
Airport
Building
Total
$ 1,302,016
$ 430,184
$ 651,957
$ 2,384,157
(1,005,061)
(294,225)
(87,829)
(1,387,115)
(284,783)
(163,418)
(324,156)
(772,357)
12,172
(27,459)
239,972
224,685
56,436
-
56,436
(13,464)
(13,464)
-
(16,572)
(16,572)
172,000
82,734
254,734
214,972
66,162
281,134
(170,571)
(279,134)
(449,705)
274
-
274
-
230,868
230,868
(170,297)
(48,266)
-
(218,563)
(58,437)
197,780
139,343
397
3,994
4,391
(58,040)
201,774
143,734
(1,193)
(9,563)
441,746
430,990
2,610
10,109
88,496
101,215
$ 1,417
$ 546
$ 530,242
$ 532,205
continued...
47
CITY OF SEBASTIAN, FLORIDA
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2013
Cash flow from operating activities:
Operating income (loss)
Adjustments to reconcile operating income to net
cash provided (used) by operating activities:
Depreciation expense
Changein:
Accounts receivable
Inventories
Due from other governments
Prepaid expenses
Accounts payable
Due to other governments
Unearned revenues
Accrued compensated absences
Net other postemployment benefit obligation
Total adjustments
Net cash provided (used) by operating activities
Business -type Activities - Enterprise Funds
Golf Nonmajor -
Course Airport Building Total
$ (74,598) $ (643,555) $ 284,058 $ (434,095)
86,244
(274)
1,283
(416)
(3,104)
(22)
(129)
3,296
(108)
86,770
12,172 $
The accompanying notes are an integral part of these basic financial statements.
655,811
9,121
5,179
(53,863)
(46)
(2)
(58)
(6,775)
6,786
(57)
616,096
(27,459) $
1,014
(527)
1,111
3,362
(59,383)
10,528
(191)
(44,086)
239,972 $
742,055
8,847
6,462
(52,849)
(989)
(1,995)
3,282
(66, 287)
20,610
(356)
658,780
224,685
concluded
48
CITY OF SEBASTIAN, FLORIDA
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2013
Pension
Trust
Agency
Police
Officers'
Performance
Pension
Deposits
Assets
Cash and cash equivalents
$ 804,346
$ 11,930
Receivables:
Interest and dividends
27,764
-
Investments, at fair value:
Local government surplus trust funds investment pools
-
220,000
United States treasury obligations
1,123,608
-
United States government agency notes
330,625
Corporate and foreign bonds
2,471,215
Municipal obligations
33,242
Common equity securities
5,281,772
-
Total investments
9,240,462
220,000
Total assets
10,072,572
$ 231,930
Liabilities
Refunds payable - $ 231,930
Net position
Held in trust for pension benefits $ 10,072,572
The accompanying notes are an integral part of these basic financial statements.
49
CITY OF SEBASTIAN, FLORIDA
Statement of Changes in Fiduciary Net Position
Fiduciary Fund - Pension Trust
For the Year Ended September 30, 2013
Additions
Contributions:
Employer
Plan members
State
Total contributions
Investment earnings:
Net increase in fair value of investments
Interest and dividends
Total investment earnings
Investment expenses
Net investment earnings
Total additions
Deductions
Benefits
Refunded contributions
Administrative expenses
Total deductions
Change in net position
Net position, beginning of year
Net position, end of year
Police
Officers'
Pension
$ 392,666
154,683
145,961
693,310
884,818
209,943
1,094,761
(64,942)
1,029,819
1,723,129
459,439
5,997
32,153
497,589
1,225,540
8,847,032
$ 10,072,572
The accompanying notes are an integral part of these basic financial statements.
50
NOTES TO FINANCIAL STATEMENTS
51
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 22,188 living in an area of
approximately 14.6 square miles. The governing body is a five member elected City Council with a mayor
elected from the five members. The City Council appoints the City Manager who is responsible for the
administration of all City services.
The financial statements of the City have been prepared in conformity with generally accepted accounting
principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB)
is the accepted standard setting body for establishing governmental accounting and financial reporting
principles. The more significant of the City's accounting policies are described below.
Reporting Entity
As required by generally accepted accounting principles, these financial statements present the
government and its component units, entities for which the City is financially accountable. Blended
component units, although legally separate entities, are, in substance, part of the government's operations
and as such, data from these units are combined with data of the primary government. Discretely
presented component units, on the other hand, are reported in a separate column in the combined
financial statements to emphasize that they are legally separate from the government. The City has no
discretely presented component units.
Blended Component Units
The following component units are blended with the primary government for financial statement purposes
because the component unit's governing body is substantially the same as the City Council or because the
component unit exclusively serves the City.
Community Redevelopment Agency (CRA) - The governing body of the CRA is the Sebastian City Council.
The CRA is accounted for in a special revenue fund entitled "Riverfront Redevelopment". F.S. Section
163.387(8) requires an independent audit of the fund each fiscal year and a report of such audit. The City
has presented the CRA as a major fund of the City to satisfy this requirement simply due to the scope of
the audit for a major fund is broader than a non -major fund.
City of Sebastian Police Officers' Pension Plan - The City Council only appoints two of the five members of
the governing board, but it is financially responsible for funding the police officers' pension benefits. The
City of Sebastian Police Officers' Pension Trust Fund only exists to provide pension benefits to City of
Sebastian police officers. It is accounted for as a Pension Trust fund entitled "Police Officers' Pension".
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.
52
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include (1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment and (2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds,
even though the latter are excluded from the government -wide financial statements. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements.
Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of
the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed
by the provider have been met.
Agency funds are custodial in nature and do not present results of operations or have a measurement focus.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
government considers revenues to be available if they are collected within 60 days of the end of the
current fiscal period, and expenditure -driven grants which must be collected within one year. Expenditures
generally are recorded when a liability is incurred, as under accrual accounting. However, debt service
expenditures, as well as expenditures related to compensated absences and claims and judgments, are
recorded only when payment is due.
Property taxes, intergovernmental revenue, licenses, and interest associated with the current fiscal period
are all considered to be susceptible to accrual and as such have been recognized as revenues of the current
fiscal period. All other revenue items are considered to be measurable and available only when cash is
received by the government.
The City reports the following major governmental funds:
The General Fund is the government's primary operating fund. It accounts for all the financial
resources of the general government, except those accounted for and reported in another fund.
The Discretionary Sales Tax Fund accounts for the financial resources used for infrastructure
improvements and equipment purchases.
53
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
The Rvverfront Redevelopment Fund accounts for tax increment revenues that are legally restricted
for the redevelopment of the City's riverfront area.
The Discretionary Sales Surtax Revenue Bonds 2003 Fund accounts for the accumulation of pledged
funds that are legally restricted to pay the bonded debt obligations of the Discretionary Sales Surtax
Revenue Bonds, Series 2003 and Series 2003A.
The General Capital Projects Fund accounts for financial resources that are restricted, committed or
assigned to expenditure for specific capital acquisitions or construction projects.
The City reports the following major proprietary funds:
The Golf Course Fund accounts for the activities of the municipal golf course.
The Airport Fund accounts for the activities of the municipality's general aviation airport.
The Building Fund accounts for the activities associated with the building permit and inspection
program.
Additionally, the City reports the following fund types:
Special revenue funds are used to account for and report the proceeds of specific revenue sources
that are restricted or committed to expenditure for specified purposes other than debt service or
capital projects.
Debt service funds are used to account for and report financial resources that are restricted,
committed, or assigned to expenditure for principal and interest.
Capital projects funds are used to account for and report financial resources that are restricted,
committed, or assigned to expenditure for capital outlays, including the acquisition or construction of
capital facilities and other capital assets.
The permanent fund is used to record the activity and balance of the Cemetery Trust which provides
funds for perpetual care of cemetery lots.
The Pension Trust Fund accounts for the activities of the Police Officer's Retirement System, which
accumulates resources for pension benefit payments to qualified police officers.
The Performance Deposits Agency Fund accounts for deposits placed by bidders and developers to
guarantee performance pursuant to bid or contract. These funds are held by the City as agent for
individuals and businesses.
As a general rule, the effect of interfund activity has been eliminated from the government -wide financial
statements. Exceptions to this general rule are payments in lieu of taxes and various other functions of the
government. Elimination of these charges would distort the direct costs and program revenues reported
for the various functions concerned. The General Fund provides certain central services to other funds of
the City which are presented as program expenses in the funds receiving services. The related General
Fund revenue has been netted against program expense in the government -wide statement of activities.
54
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the
enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds
include the cost of sales and services, administrative expenses, and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
Restricted net position represents resources that are subject to restrictions beyond the government's
control. The restrictions may be externally imposed or imposed by law. When both restricted and
unrestricted resources are available for use, it is the government's policy to use restricted resources first,
then unrestricted resources as they are needed.
Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Equity
Deposits and investments
The City considers cash on hand and demand deposits, restricted cash deposits, and short-term investments
with maturities of three months or less when purchased to be cash for the statement of cash flows. Cash in
excess of current requirements is invested in various interest -bearing securities and disclosed as part of the
City's investments.
Investments consist of U.S. Treasury Securities, U.S. Government Agency Securities, common stock,
guaranteed investment contracts and the Local Government Surplus Funds Trust Fund Investment pool (Pool
A and Pool B). 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
Pool A. In accordance with the regulations of 2a-7 like pools, the City's share of investments held at the
State Board of Administration in Pool A are reported at amortized cost, which approximates fair value. This
pool is regulated by the State and the fair value of the position in the pool is the same as the value of the
pool share. Investment earnings of Pool A 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. Investments in Pool
B are reported at fair value and as income and returns of principal become available, they are transferred
to Pool A. 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 applicable governmental funds to
indicate they are not available for appropriation and are not expendable available financial resources.
55
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Restricted assets
Certain amounts reported as cash and cash equivalents are classified as restricted assets. These include
balances in the debt service funds that are set aside to meet bonded debt requirements, balances in the
capital projects funds to be used for the payment of project costs and balances in the Cemetary Fund that
are either not permitted to be spent or can only be spent for items incidental to cemetary expansions. The
amount of the Cemetary Fund investments is also classified as restricted assets and reported as
permanently restricted investments.
Receivables and payables
All trade and property tax receivables are shown net of an allowance for uncollectibles, as applicable.
Amounts due from other governments include amounts due from grantors for specific programs and capital
projects. Program grants and capital grants for capital assets are recorded as receivables and revenues at
the time reimbursable project costs are incurred. Revenues received in advance of project costs being
incurred are deferred. Receivables consist of trade receivables, due from other governments and interest
receivable and are recorded at the net realizable value. The City, as of September 30, 2013, has no
allowance for doubtful accounts, since all receivables are considered collectible.
Other assets
Inventories are valued at cost using the average cost method. Inventory in the General Fund consists of
materials and supplies held for consumption. The cost is recorded as an expenditure/expense at the time
the individual inventory items are consumed. Inventory in the Golf Course Fund consists of supplies held for
resale.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both the government -wide and fund financial statements.
Costs associated with the issuance or refunding of bonds payable are reported as assets the in proprietary
funds and government -wide statements. These costs are amortized over the life of the related debt
utilizing the straight-line method.
Capital assets
Capital assets, which include land, buildings, improvements, equipment, and infrastructure assets (e.g.,
roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business -type
activities columns in the government -wide financial statements. The City defines capital assets as assets
with an initial, individual cost of more than $750 and an estimated useful life in excess of one year. Such
assets are recorded at historical cost, if purchased, and at fair market value at date of gift, if donated.
Major additions are capitalized while maintenance and repairs that do not improve or extend the life of the
respective assets are expensed.
56
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
asset lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business -type activities, if any, is included as
part of the capitalized value of the asset constructed.
Capital assets are depreciated using the straight-line method over the following estimated useful lives:
Years
Buildings and improvements 10-40
Public domain infrastructure 40-50
System infrastructure 15-30
Improvements other than building! 10-40
Machinery, equipment and other 5-15
Airport runways 20
Compensated absences
It is the City's policy to permit employees to accumulate earned but unused vacation and sick leave
benefits and these are accounted for using the termination payment method. All vacation and sick leave
amounts are accrued in the government -wide and proprietary financial statements. A liability for these
amounts is reported in governmental funds only if they have matured, for example, as a result of employee
resignations and retirements.
Unearned Revenue
Governmental funds report unearned revenue in connection with resources that have been received, but
not yet earned.
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.
57
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Fund equity
Governmental funds report nonspendable fund balance for amounts that cannot be spent because they are
either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Restricted
fund balance is reported when externally imposed constraints are placed on the use of resources by
grantors, contributors, or laws or regulations of other governments. Committed fund balance is reported
for amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of
the City Council (the government's highest level of decision -making authority). A formal resolution of the
City Council is required to establish, modify, or rescind a fund balance commitment. The City reports
assigned fund balance for amounts that are constrained by the government's intent to be used for specific
purposes, but are neither restricted nor committed. The City Council has delegated the authority to assign
fund balance to the City Manager or his/her designee. Unassigned fund balance is the residual
classification for the General Fund.
When the government incurs an expenditure for purposes for which various fund balance classifications can
be used, it is the government's policy to use restricted fund balance first, then committed fund balance,
assigned fund balance, and finally unassigned fund balance.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the amounts
reported in the financial statements and accompanying notes. Actual results may differ from those
estimates.
2. BUDGETARY INFORMATION
Budgets are prepared annually on a modified accrual basis with encumbrance accounting for all
governmental funds except the capital project funds, which are approved on a "life of the project basis",
and the permanent fund, which is not budgeted. All annual appropriations lapse at year end.
On or before the third Friday in May of each year, all agencies of the government submit requests for
appropriations to the government's City Manager so that a budget may be prepared. Before July 31, the
proposed budget is presented to the government's council for review. The council holds budget workshops
and public hearings and a final budget must be prepared and adopted no later than September 30.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is
employed as an extension of formal budgetary integration in the General, Special Revenue, Debt Service,
and Capital Projects funds. Encumbrances outstanding at year end are carried forward and reappropriated
to the next year's budget.
Actual results of operations presented in accordance with U.S. generally accepted accounting principles
(GAAP basis) and the City's accounting policies do not recognize encumbrances as expenditures until the
period in which the actual goods or services are received and a liability is incurred. It is necessary to
include budgetary encumbrances to reflect actual revenues and expenditures on a basis consistent with the
City's legally adopted budget.
58
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
3. DEPOSITS AND INVESTMENTS
Following is a reconciliation of deposit and investment balances as of September 30, 2013:
Statement of Net Position
Cash and cash equivalents $ 5,715,982
Temporarily restricted cash and cash equivalents 2,449,827
Investments 3,122,055
Permanently restricted investments 256,789
Statement of Fiduciary Net Position
Police Officers' Pension:
Cash and cash equivalents 804,346
Investments 9,240,462
Agency funds:
Cash and cash equivalents 11,930
Investments 220,000
Total $ 21,821,391
Deposits and investments
Bank deposits:
Checking and savings accounts $ 8,979,655
Investments:
Investments, at fair value 3,598,844
Police officers' pension fund investments 9,240,462
Cash on hand 2,430
Total $ 21,821,391
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, 2013, the carrying amount of the City of
Sebastian's deposits with banks was $8,249,985 and the bank balance was $8,175,309. 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.
59
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Custodial Credit Risk - Investments. On April 23, 2003, Sebastian City Council formally adopted an
investment policy pursuant to Section 218.415, Florida Statutes that established permitted investments,
asset allocation limits and issuer limits, credit ratings requirements and maturity limits for all investments
except the Pension Trust Funds. The City maintains a common cash and investment pool for the use of all
funds, except the Pension Trust Funds, which are held with third party trustees and are governed by rules
established by Florida Statute Chapter 185.
Investment holdings during the year included United States Government Agencies which were reported at
fair value in accordance with GASB Statement No.31 "Accounting and Financial Reporting for Certain
Investments and for External Investment Pools". These investments were held in trust by the City's bank
depository in the City's name or by the Custodian of the Pension Trust Funds.
Section 218.415, Florida Statutes, limits the types of investments that the City can invest in unless specially
authorized in the City's investment policy. The City's formal investment policy, for all investments except
the Pension Trust Fund, allows for the following investments: Florida Local Government Surplus Funds Trust
Fund, United States Government Securities, United States Government Agencies, Federal Instrumentalities,
Interest Bearing Time Deposit or Saving Accounts, Repurchase Agreements, Commercial Paper, High Grade
Corporate Notes, Bankers' Acceptances, State and/or Local Government Taxable and/or Tax -Exempt Debt,
Registered Investment Companies (Money Market Mutual Funds), and Intergovernmental Investment Pool.
Florida Statutes Chapter 185 regulates the types of investment that may be held by the Police Pension
Trust Fund. The investment guidelines have been augmented by City ordinance that have adopted specific
investment policies. Compliance with the policies and guidelines has been evaluated by the pension board.
As of September 30, 2013, the City had the following investments and effective duration presented in terms
of years:
Investment Maturity (Years)
Investment Type Fair Value Less Than 1 From 1-3 From 4-6 Over 7
General investments
Local government surplus
funds trust fund ("SBA") $ 3,598,844 $ 3,598,844 $ - $ - $
Police officers' pension fund investments
United States Treasuries
1,123,608
200,097
610,253 313,258
-
United States Agencies
330,625
-
- 91,603
239,022
Municipal Obligations
33,242
-
- -
33,242
Domestic corporate bonds
2,471,215
213,602
658,032 843,448
756,133
Domestic corporate equities
equities
5,281,772
5,281,772
- -
-
9,240,462
5,695,471
1,268,285 1,248,309
1,028,397
Total fair value $ 12,839,306 $ 9,294,315 $ 1,268,285 $ 1,248,309 $ 1,028,397
60
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
for investments in the following investments, 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 It Poor's, or the equivalent by another
rating agency. State and/or local government taxable and/or tax-exempt debt, general obligation and/or
revenue bonds, rated at least "Aa" by Moody's and "AA" by Standard Et Poor's for long-term debt, or rated at
least "MIG-2" by Moody's and 'SP-2" by Standard if Poor's for short-term debt. Bankers' acceptances issued by
a domestic bank or a federally chartered domestic office of a foreign bank, which are eligible for purchase
by the Federal Reserve System, at the time of purchase, the short-term paper is rated, at a minimum, "P-I"
by Moody's Investors Services and "A -I" Standard Et Poor's. Commercial paper of any United States company
that is rated, at the time of purchase, "Prime-1" by Moody's and "A-1" by Standard It 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 tern1 debt rating, at the
time of purchase, at a minimum "Aa" by Moody's and a minimum long term debt rating of "A A" by Standard
Et Poor's.
As of September 30, 2013, the City's investment securities, for all investments except the Pension Trust
Fund, were all individually rated AAAm by Standard Et Poor's.
As of September 30, 2013, the City had $3,598,844 invested in the State Board of Administration's Local
Government Surplus Trust Funds Investment Pool, which consist of accounts in Pool A and Pool B.
$3,504,760 is in Pool A and $94,084 is in Pool B. Pool A had a rating by Standard and Poor's Rating Services
as "AAAm" on September 30, 2013 and amounts may be withdrawn without penalty. Pool B participants are
prohibited from making withdrawals. Pool B is not rated by any nationally recognized statistical rating
agency. Additional information regarding the Local Government Surplus Funds Trust Fund may be obtained
from the State Board of Administration.
Investment in the City's pension trust funds are limited by State Statutes Chapter 185 and by an investment
policy adopted by the fund's Board of Trustees on June 24, 2005. The allowable investment instruments
include: United States government and agency issues, bankers acceptances and certificates of deposit by
United States banks, savings accounts with banks or other financial institutions incorporated in the United
States and commercial paper rated A-2 or P-2 or higher by Moody's or Standard and Poors. In addition,
common stocks of corporations listed on a recognized national stock exchange, plus issues convertible into
common stock are also allowed. No more than ten percent (10%) of the cost value of total assets may be
invested in foreign securities.
61
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Custodial Credit Risk. The City's investment policy pursuant to Section 218.415(18), Florida Statutes
requires securities, with the exception of certificates of deposits, shall be held with a third party
custodian; and all securities purchased by, and all collateral obtained by the City should be properly
designated as an asset of the City. The securities must be held in an account separate and apart from the
assets of the financial institution. A third party custodian is defined as any bank depository chartered by
the Federal Government, the State of Florida, or any other state or territory of the United States which has
a branch or principal place of business in the State of Florida as defined in Section 658.12, Florida Statutes,
or by a national association organized and existing under the laws of the United States, which is authorized
to accept and execute trusts and which is doing business in the State of Florida. Certificates of deposits
maintained by book -entry at the issuing bank shall clearly identify the City as the owner.
Concentration of Credit Risk. The City's investment policy has established asset allocation and issuer limits
on the following investments, which are designed to reduce concentration of credit risk of the City's
investment portfolio.
A maximum of 100% of available funds may be invested in the SBA and in the United States Government
Securities, 50% of available funds may be invested in United States Government agencies with a 25% limit
on individual issuers, 80% of available funds may be invested in Federal Instrumentalities with a 40% limit
on individual issuers, 25% of available funds may be invested in non-negotiable interest bearing time
certificates of deposits with a 15% limits on individual issuers, 50% of available funds may be invested in
repurchase agreements excluding one (1) business day agreements and overnight sweep agreements with a
25% limit on anyone institution, 25% of available funds may be directly invested in prime commercial paper
with a 10% limit on individual issuers, 15% of available funds may be directly invested in corporate notes
with a 5% limit on individual issuers, 25% of available funds may be directly invested in Bankers'
Acceptances with a 10% limit on individual issuers, 20% of available funds may be invested in taxable and
tax-exempt debts, 50% of available funds may be invested in money market mutual fund with a 25% limit
on individual issuers, 10% of available funds may be invested in intergovernmental investment pools.
The City's pension trust funds investment policy adopted by the fund's Board of Trustees has established
asset allocation and issuer limits on the following investments, which are designed to focus on
performance. A maximum of 100% of available funds may be invested in fixed income securities and a
maximum of 50% of available funds may be invested in equity securities.
As of September 30, 2013, the City had the following issuer concentration based on fair value:
General Investments Pension Investments
Percentage of Percentage of
Issuer Amount Portfolio Amount Portfolio
Local government surplus funds
trust fund ("SBA")
$ 3,598,844 100.00%
$ -
0.00%
United States treasuries
- 0.00%
1,123,608
12.16%
United States agencies
0.00%
330,625
3.58%
Municipal obligations
0.00%
33,242
0.36%
Domestic corporate bonds
0.00%
2,471,215
26.74%
Domestic corporate equities
- 0.00%
5,281,772
57.16%
Total
$ 3,598,844 100.00%
$ 9,240,462
100.00%
62
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
4. RECEIVABLES
Receivables are comprised of the following at year-end:
Governmental Business -type
Activities Activities
Accounts $ 300,023 $ 4,651
Due from other governments 589,843 53,863
$ 889,866 $ 58,514
5. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable and accrued liabilities are comprised of the following at year-end:
GovernmentalBusiness-type
Activities Activities
Accounts payable $ 340,047 $ 8,224
Accrued liabilities 174,230 16,975
Due to other governments 107,391 10,550
$ 621,668 $ 35,749
6. INTERFUND RECEIVABLES AND PAYABLES AND TRANSFERS
The composition of interfund balances as of September 30, 2013, was as follows:
Due to and from primary government funds
General Fund
Local Option Gas Tax
Golf Course
Airport
Advances to and from primary government funds
General Fund
Discretionary Sales Tax
Airport
Due from Due to Other
Other Funds Funds
$ 330,050 $ -
- 7,500
237,000
85,550
$ 330,050 $ 330,050
Advance from Advance to
Other Funds Other Funds
$ $ 200,000
552,511
752,511 -
$ 752,511 $ 752,511
63
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
These balances resulted from the time lag between the dates that (1) interfund goods and services are
provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and
(3) payments between funds are made.
The balance of $552,511 advanced to the airport fund from the discretionary sales tax fund is to be repaid
over a thirty year period in accordance with Resolution No. R-08-20 for the initial $285,000 advance and
with Resolution No. R-10-22 authorizing an additional $290,000 advance. In relationship to these advances,
$22,489 has been repaid as of September 30, 2013. The balance of $200,000 advanced to the airport from
general fund represents a cash loan made in 2007 without any specified terms for repayment.
For the year ended September 30, 2013, interfund transfers consisted of the following:
Transfers out
Nonmajor
Discretionary Riverfront Governmental
Transfers In General Fund Sales Tax Development Funds Totals
General Fund $ - $ 60,000 $ 505,399 $ 565,399
Revenue Bonds2003 1,012,795 - - 1,012,795
General Capital Projects 261,757 - 67,546 329,303
Nonmajor governmental funds - 609,579 6,175 1,012,137 1,627,891
Airport 63,561 37,734 - - 101,295
$ 63,561 $ 1,921,865 $ 66,175 $ 1,585,082 $ 3,636,683
Transfers are used to: (1) move revenues from the fund that is required to collect them to the fund that is
required or allowed to expend them and (2) move receipts restricted to or allowed for debt service from
the funds collecting the receipts to the debt service fund as required by bond covenants.
64
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
7. CAPITAL ASSETS
Capital asset activity for the primary government for the year ended September 30, 2013, was as follows:
Beginning Ending
Balance Additions Disposals Transfers Balance
Governmental activities
Capital assets, not being depreciated:
Land $ 8,007,437 $ 312,151 $ $ - $ 8,319,588
Construction in progress 163,429 43,612 (86,299) 120,742
8,170,866 355,763 (86,299) 8,440,330
Capital assets, being depreciated:
Buildings
12,397,779
123,202
(32,435)
12,488,546
Non -building improvements
6,330,986
299,458
(244)
6,630,200
Machinery and equipment
8,167,365
571,582
(715,004)
- 8,023,943
Infrastructure
35,611,587
777,716
86,299 36,475,602
62,507,717
1,771,958
(747,683)
86,299 63,618,291
Less accumulated depreciation for:
Buildings
(3,860,149)
(406,976)
23,051
(4,244,074)
Non -building improvements
(2,724,450)
(297,516)
110
(3,021,856)
Machinery and equipment
(6,989,876)
(499,735)
700,215
(6,789,396)
Infrastructure
(14,390,852)
(1,666,778)
-
(16,057,630)
(27,965,327)
(2,871,005)
723,376
- (30,112,956)
Total capital assets
being depreciated, net
34,542,390
(1,099,047)
(24,307)
86,299 33,505,335
Governmental activities
capital assets, net $
42,713,256 $
(743,284) $
(24,307) $
$ 41,945,665
At September 30, 2013,
the City's governmental activities
had outstanding
commitments for construction
contracts of approximately $84,851.
65
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 3,042
75,467
(3,042)
75,467
12,102
75,467
(3,042)
84,527
Capital assets, being depreciated:
Buildings 6,340,342
-
6,340,342
Non -building improvements 1,903,246
4,915
1,908,161
Machinery and equipment 895,841
210,941
(22,606)
-
1,084,176
Infrastructure 7,529,303
158,382
3,042
7,690,727
16,668,732
374,238
(22,606)
3,042
17,023,406
Less accumulated depreciation for:
Buildings (1,070,766)
(169,299)
(1,240,065)
Non -building improvements (810,585)
(119,851)
-
(930,436)
Machinery and equipment (788,191)
(71,550)
22,606
(837,135)
Infrastructure (2,829,469)
(381,355)
-
(3,210,824)
(5,499,011)
(742,055)
22,606
-
(6,218,460)
Total capital assets
being depreciated, net 11,169,721
(367,817)
-
3,042
10,804,946
Business -type activities
capital assets, net $ 11,181,823
$ (292,350)
$
-
$ - $
10,889,473
Depreciation expense was charged to functions/programs of the primary government as follows:
Depreciation of governmental activities by function
General government
$
281,002
Public safety
433,779
Transportation
708,062
Physical environment
1,036,751
Economic environment
378,927
Cultural and recreation
32,484
Total governmental activities
$
2,871,005
Depreciation of business -type activities by function
Golf course
$
86,244
Airport
655,811
Total business -type activities
$
742,055
66
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
8. LONG-TERM DEBT
Revenue bonds/notes are secured by and payable from the revenues of the respective funds that issued
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 fifteen (15) year, $9,500,000 Infrastructure Sales Surtax Revenue Bonds, Series 2003
in April 2003. The City has pledged Infrastructure Sales Surtax revenues for repayment of principal and
interest.
The City issued a fifteen (15) year, $2,125,000 Infrastructure Sales Surtax Revenue Bonds, Series 2003A
in December 2003. The City has pledged Infrastructure Sales Surtax revenues for repayment of
principal and interest.
The City issued a nineteen (19) year, $5,630,000 Stormwater Utility Revenue Bonds, Series 2003 in
November 2003. The City has pledged Stormwater Fee Revenues along with a covenant to budget and
appropriate for repayment of principal and interest.
The City entered into a three (3) year loan agreement in 2013 with a local bank for $56,436 to provide
financing to purchase maintenance equipment for the Golf Course. Repayment of principal and
interest will be made from Golf Course revenues.
Bond Coverage
The City has covenanted in the Stormwater Utility Revenue Bonds, Series 2003 Bond Resolution to fix,
establish, maintain and collect stormwater fees, and revise the same from time to time whenever
necessary, so as to always provide in each fiscal year stormwater fee revenues and investment earnings
equal to at least one hundred thirty-five percent (135%) of the annual debt service becoming due in each
fiscal year.
The following table indicates the degree of compliance with the bond resolution covenants in the
Stormwater Utility Fund at September 30, 2013.
Gross Revenue
Available for Debt Service % Coverage for
Compliance Requirement Fiscal Year End
$ 1,007,221 $ 438,048 230%
67
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
The following is a summary of governmental activities long-term debt transactions for the year ended
September 30, 2013:
Governmental activities
Bonds payable
Notes payable
Discount on bonds payable
Compensated absences
Termination benefits
Pollution remediation
Totals governmental
activities
Beginning
Balance
$ 8,925,000 $
2,296,000
11,221,000
(7,917)
1,435,586
2,543
91,200
Ending Due Within
Additions Deductions Balance One Year
$ (1,110,000) $ 7,815,000 $ 1,155,000
(197,000)
2,099,000
203,000
(1,307,000)
9,914,000
1,358,000
- 833
(7,084)
-
594,802 (567,180)
1,463,208
99,280
14,880 (2,543)
14,880
2,980
-
91,200
-
$ 12,742,412 $ 609,682 $ (1,875,890) $ 11,476,204 $ 1,460,260
Bonds Davable
2003 Infrastructure Sales Surtax Revenue Bonds, due in annual
installments of $645,000 to $805,000 plus interest at 2.0%
to 4.5% through 2018.
$ 3,725,000
2003A Infrastructure Sales Surtax Revenue Bonds, due in annual
installments of $150,000 to $185,000 plus interest at 2.0%
to 4.0% through 2018.
875,000
2003 Stormwater Utility Revenue Bonds, due in annual
installments of $280,000 to $420,000 plus interest at 2.0%
to 4.5% through 2022.
3,215,000
Total
$ 7,815,000
Notes Davable
Florida Gas Tax Revenue Note, due in annual installments of
$97,000 to $121,000 plus interest at 1.94%
through 2023. $ 2,099,000
The following is a summary of business -type activities long-term debt transactions for the year ended
September 30, 2013:
Beginning
Balance Additions Deductions
Business -type activities
Notes payable $ - $ 56,436 $ (13,464) $
Compensated absences 196,000 58,570 (37,960)
Totals business -type
activities $ 196,000 $ 115,006 $ (51,424) $
Ending Due Within
Balance One Year
42,972 $ 18,613
216,610 9
259,582 $ 18,622
68
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Annual debt service requirements to maturity for long-term debt are as follows:
Governmental Activities
Business -type Activities
Year Ended
September 30,
Principal
Interest
Principal Interest
2014
$ 1,358,000
$ 357,295
$ 18,613 $ 1,398
2015
1,407,000
309,625
19,390 630
2016
1,456,000
259,334
4,969 34
2017
1,510,000
206,167
- -
2018
1,564,000
149,836
2019-2023
2,619,000
232,194
$ 9,914,000 $ 1,514,451 $ 42,972 $ 2,062
For the governmental activities, compensated absences, the unfunded OPEB obligation and termination
benefits are generally liquidated by the General Fund. For business -type activities, compensated absences
and unfunded OPEB obligations are allocated to and liquidated by the golf course, airport or building funds.
A pollution remediation obligation was recorded for a Florida Department of Environmental (FDEP) Order
dated March 10, 1997. This was related to an incident of petroleum contamination at the Public Works
Department on April 22, 1991. The City was named as the party responsible for the cleanup but FDEP
determined the discharge is eligible under the Petroleum Cleanup Participation Program and will not
compel site rehabilitation prior to funding becoming available from that program. The program has a
funding cap of $400,000, with a 25% required cost share percentage. The City must also pay for a limited
contamination assessment report sufficient to determine the extent of the contamination and cleanup.
Based on the information available, the City estimated its expenditure to be $91,200 dependent on the
extent of work that is eventually required and recorded a long-term liability of $91,200.
9. LEASES
Operating Leases - Lessee
The City is obligated under certain leases for land and golf carts accounted for as operating leases.
Operating leases do not give rise to property rights or lease obligations. Total costs for such leases were
$192,690 for the fiscal year ended September 30, 2013. These include the Airport Fund's lease obligation
for the property used as the City's golf course, and the final year of a lease on the golf carts. The following
is a schedule by years for future minimum rental payments required under operating leases in the businees-
type activities that have initial or remaining noncancelable lease terms in excess of one year at September
30, 2013:
Year Ended
September 30, Airport
2014 $ 115,000
2015 115,000
Total $ 230,000
69
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Operating Leases - Lessor
The City is the lessor in two communication tower leases with terms of up to fifty-five years. The towers
have a cost of $39,285 and have been fully depreciated. Following is a schedule by year of minimum future
rental income on noncancelable operating leases:
Year Ended Governmental
September 30, Activities
2014
$ 71,333
2015
73,226
2016
75,214
2017
80,758
2018
82,950
2019-2023
430,931
2024-2028
421,778
2029-2033
515,957
2034-2038
636,155
2039-2043
789,562
2044-2048
985,352
2049-2053
1,235,235
2054-2055
578,936
Total $ 5,977,387
The Airport Fund is the lessor of various properties ([and 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 $115,000 through 2015. 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
2014
$ 343,607
2015
344,837
2016
216,808
2017
215,226
2018
221,488
2019-2023
1,156,947
2024-2028
700,869
2029-2033
421,733
2034-2036
106,311
Total $ 3,727,826
70
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
10. PROPERTY TAXES
The City is permitted by State law to levy taxes up to 10 mills on assessed valuation. The millage rate
levied by the City for the fiscal year ended September 30, 2013, was 3.7166 mills. Total tax collections
were approximately 98.4% of the total tax levy.
The tax levy of the City is established by City Council. Under Florida law, the assessment of all properties
and the collection of municipal taxes are provided by offices of the County's Property Appraiser and Tax
Collector. Ad Valorem taxes are levied on property values as of January 1. The fiscal year for which taxes
are levied begins October 1. Taxes are due November I and become delinquent on April 1. All taxes unpaid
as of May 30 are subject to a tax certificate sale. Property tax revenues are recognized in the fiscal year
for which they are levied and also become due and payable.
11. CONTINGENT LIABILITIES
Various suits and claims are currently pending against the City. It is impossible for the City to accurately
quantify the exposure involved given the jury's latitude in assessing compensatory and punitive damages,
and the court's latitude in awarding attorney's fees. The City intends to vigorously defend against these
lawsuits and believes it has a good chance of prevailing on their merits. The City is contingently liable with
respect to lawsuits and other claims incidental to the ordinary course of its operations. In the opinion of
management and based on the advice of legal counsel, the ultimate disposition of lawsuits will not have a
material adverse effect on the financial position of the City.
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor
agencies, principally the federal and state governments. Any disallowed claims, including amounts already
collected, may constitute a liability to the applicable funds. The amount, if any, of expenditures that may
be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if
any, to be immaterial.
12. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of or damage to and destruction of assets;
errors and omissions; and natural disasters. The City purchases commercial insurance with various
deductibles for different types of losses. The cost of this insurance is accounted for in the General Fund,
Golf Course Fund, Airport Fund, and Building Fund. Settled claims have not exceeded this commercial
coverage in the past three fiscal years.
71
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
13. BENEFIT PLANS
Police Officer's Pension Plan
Defined Benefit Pension Plan
Plan Description. The Police Officers' Pension Plan is a Florida Statute Chapter 185 single -employer defined
benefit plan. Only City police officers participate in the Police Pension Plan. The state provides a
contribution to the Police Pension Plan through a distribution of funds collected from insurance premium
taxes. The Pension plan data provided in these Financial Statements are from the actuarial valuation as of
October 1, 2013 to determine the required contribution for the fiscal year ending September 30, 2013.
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.
As of September 30, 2013, employee membership data was as follows:
Retirees and beneficiaries currently receiving benefits 8
Beneficiaries 1
Disability retirees 2
Terminated employees not currently receiving benefits 3
Fully, partially, and non -vested active plan participants 35
49
Benefit Provisions and Contribution Requirements. The Police Officers' Pension Plan provides retirement
and disability benefits to plan members and beneficiaries. This Plan is administered by a separate local
Board of Trustees. Chapter 185, Florida Statutes, as amended governs all benefit provisions of the Plan.
Contribution requirements, in accordance with Chapter 185, Florida Statutes, are established by City
ordinance, as provided in Chapter 58, Article III of the Sebastian City Code. The City Council has the
authority to amend funding requirements.
Funding Policy. The employer, employee, and State contribution requirements are applicable to the Plan
and actuarially determined on a frequency of at least every 3 years in accordance with Florida State
Statute. Administration costs of the pension plan are financed by the Plan. For the 2012-2013 fiscal year,
the employee contribution rate, expressed as a percentage of compensation, was 7.6% and the employer
contribution rate was 19.1%. The employer contribution amounted to $392,666. The State contribution was
$145,961, which represents state shared revenue that is levied on property and casualty insurance
premiums and collected by the State. Contributions by the State that are in excess of the amount allowed
under Florida Statute are not included in the development of the net pension asset, but are considered
part of an excess state monies reserve, to be used for extra benefits. The total excess state monies
reserve included in the pension trust as of September 30, 2013 was $38,259. The State contribution was
recognized and recorded in the general fund and the corresponding expenditure was recorded as public
safety expenditure. The City is required to contribute the remaining amounts to ensure that the Plan is
72
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
For the year ended September 30, 2013 the City's annual pension cost was $511,382, however actual
contributions equaled $538,627, increasing the net pension asset. The required contribution was
determined as part of the October 1, 2013 actuarial valuation using the frozen entry age actuarial cost
method. The actuarial assumptions included: a rate of return on the investment of present and future
assets of 8.0% and projected salary increases of 6.0% per year, including inflation at 3.0%. The plan's
unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on an
closed basis. The remaining amortization period at October 1, 2013, the date of the latest actuarial
valuation, was 27 years.
Three -Year Trend Information
Years Ended Annual Pension Percentage Net Pension
September 30, Cost (APC) Contributed Asset
2011 $ 740,942 99.39% $ 136,816
2012 564,551 99.17% 132,133
2013 511,382 101.70% 140,836
Reserves. All of the net position of the Police Pension Plan are legally reserved for plan participant
benefits.
Basis of Accounting. Financial statements are prepared using the accrual basis of accounting. Plan member
contributions are recognized in the period in which the contributions are due. Employer contributions are
recognized when due, and the employer has made formal commitment to provide the contributions.
Benefits and refunds are recognized when due and payable in accordance with the terms of the Plan.
Method Used to Value Investments. Investments are reported at fair value. Short-term investments are
reported at cost, which approximates fair value. Securities traded on a national or international exchange
are valued at the last reported sales price at current exchange rates. Mortgages are valued on the basis of
future principal and interest payments, and are discounted at prevailing interest rates for similar
instruments. Investments that do not have an established market are reported at estimated fair value.
Investments in securities of a single organization (excluding mutual funds and those issued or guaranteed
by the U.S. government) held by the pension plan did not exceed five percent of the total plan assets.
73
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Development of Net Pension Asset. The municipal Defined Benefit Plan has been subject to the minimum
funding standards since the adoption of the "Florida Protection of Public Employee Retirement Benefit Act"
(Part VII of Chapter 112, Florida Statutes) in 1980. Accordingly, the sponsor has funded the actuarially
determined required contributions for all years from October 1, 1987, through the transition date, October
1, 1997. Thus, the NPO on October 1, 1997, was $0.
The following table shows the components of the City's annual pension cost for the year ended September
30, 2013, the amount actually contributed to the plan, and the changes in the City's net pension asset:
September 30,
2013
Actuarially determined contribution $ 506,860
Interest on net pension asset (10,571)
Adjustment to actuarially determined contribution 15,093
Annual pension cost 511,382
Contributions made 520,085
Increase in net pension asset 8,703
Net pension asset, beginning of year 132,133
Net pension asset, end of year $ 140,836
Funded Status and Funding Progress. As of October 1, 2013, the most recent actuarial valuation date, the
plan was 92.20 percent funded. The actuarial accrued liability for benefits was $10,924,778, and the
actuarial value of assets was $10,072,572, resulting in an unfunded actuarial accrued liability (UAAL) of
$852,206. The covered payroll (annual payroll of active employees covered by the plan) was $2,131,399,
and the ratio of the UAAL to the covered payroll was 40.0 percent.
The schedule of funding progress, presented as RSI following the notes to the financial statements,
presents multi -year trend information about whether the actuarial value of Plan assets is increasing or
decreasing over time relative to the actuarial accrued liability for benefits.
Communication Workers of America / International Typographical Union
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, defined benefit plan. The Plan is available to
any Communication Workers of America (CWA) bargaining unit member, and benefits are portable from one
contributing employer to another.
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.
74
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Early Pension. Minimum age 60: 20 years of Service Credit required if employed after January 1, 1989. 25
years of Service Credit required if employment ended before January I, 1993. Pension amounts are
permanently reduced based on age on the effective date, because the payments are expected to be made
for a longer period of time.
Disability Pension. No minimum age and the pension amount is not reduced for age; there must be a
Social Security Disability Award, 10 years of actual Service Credit and a contribution for covered
employment must have been made within five 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 is in receipt of a Social Security Disability Award and is
vested, but not immediately eligible to receive any pension described above, the employee may be eligible
for a lump sum equal to total contributions credited on the employees behalf (or 36 times the Normal
Pension amount, if greater). If the employee is immediately eligible for a pension but not yet receiving
one, the employee can still qualify for a lump sum if the employee submits two physicians' written
statements that the disability will lead to death within one year of the date of application.
Death Benefit. If the employee dies before becoming a pensioner and has at lease $250 contributed on the
employees' behalf, a lump sum death benefit equal to total contributions credited on the employees' behalf
or 36 times the Normal Pension amount, if greater, will be paid to employees' beneficiary. If the employee
is married at the time of death, the spouse will have the choice of a lump sum or a monthly survivor
benefit.
Withdrawal Benefit. If the employee did not earn enough Service Credit to qualify for a Normal Pension,
the employee may be eligible for a lump sum withdrawal benefit, based on total contributions, after the
employee has incurred a break in service. Benefit Provisions and Contribution Requirements: The NPP
provides retirement and disability benefits to plan members and beneficiaries. The plan is administered at
the Plan Office in Colorado Springs, Colorado. Contribution requirements are established by the CWA
contract, effective date October 1, 2011, which is negotiated every 3 years, and approved by City Council.
Benefit Provisions and Contribution Requirements. The NPP provides retirement and disability benefits to
plan members and beneficiaries. The plan is administered at the Plan Office in Colorado Springs, Colorado.
Contribution requirements are established by the CWA contract, effective date October 1, 2011, which is
negotiated every 3 years, and approved by City Council.
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 2012-2013 fiscal year.
Employees do not contribute to this plan. Contributions to the CWA Pension Plan for the fiscal years ended
September 30, 2011, 2012 and 2013 were $223,113, $210,258 and $202,612 respectively, which are equal to
100% of the required contribution for each year.
Defined Contribution 401(a) Plan
Plan Description. The ICMA Retirement Corporation's 401 Retirement Plan is a Defined Contribution Plan
"qualified" under Section 401(a) of the Internal Revenue Code. Each participant has a plan account to
which contributions are made. Plan benefits are based on the total amount of money in the employees'
account at retirement or other eligible event. The Plan is available to all management staff and may be
rolled over to another "qualified" employer plan that accepts rollovers, or Traditional IRA's.
75
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 2012-13 fiscal year.
Employees do not contribute to this Plan. Contributions to the 401 Defined Contribution Plan for the fiscal
years ended September 30, 2011, 2012, and 2013 were $132,656, $109,864 and $110,184, respectively,
which are equal to 100% of the required contribution for each year.
14. OTHER POSTEMPLOYMENT BENEFITS
Plan description. Pursuant to Section 112.0801, Florida Statutes, the City is required to permit
participation in the health insurance program by retirees and their eligible dependents at a cost to the
retiree that is no greater than the cost at which coverage is available for active employees. The City, by
policy, has elected to provide qualified retirees with partial subsidy. In this respect, the City operates a
single -employer plan.
Employees are eligible to receive a partial subsidy from the Retiree Medical Plan upon retirement, if they
are enrolled in the active medical plan immediately prior to retiring and achieved at least 20 years of
service in a full time capacity. If eligible, the City pays 50% of the costs of single coverage group health
insurance for up to 2 years after retirement.
Funding Policy. Based on GASB Statement 43 and 45, which set forth the guidelines for treatment of other
postemployment benefits, the City had an actuary calculate future funding requirements in 2013. The
actuary's 2013 estimate, using the Entry Age Normal (level percentage of pay) Method, produced an
unfunded obligation of $50,901 and an annual required contribution of $3,674. The City elected to fund the
OPEB obligation on a pay-as-you-go basis. The entire unfunded obligation was recognized in the
government -wide financial statements. The enterprise fund portion ($1,963) was also recognized in the
enterprise fund financial statements. As such, a separate audited GAAP basis postemployment benefit plan
report is not available. In 2012 and 2013, the City recorded a decrease of the government -wide obligation
of $16,599 and $30,600, respectively, based on the annual required contribution reduced by the expected
future benefit payments. The additional enterprise fund portion was calculated as a decrease of $640 and
$1,180 in 2013 and 2012, respectively.
76
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Annual OPEB Cost and Net OPEB Obligation. The City's annual other postemployment benefit (OPEB) cost
is calculated based on the annual required contribution of the employer (ARC). The ARC represents a level
of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any
unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years.
The following table shows the components of the City's annual OPEB cost for the year ended September 30,
2013, the amount actually contributed to the plan, and changes in the City's net OPEB obligation:
Annual required contribution $ 4,213
Interest on net OPEB obligation 1,382
Adjustment to annual required contribution (1,921)
Net OPEB cost 3,674
Contributions made (12,952)
Decrease in net OPEB obligation (9,278)
Net OPEB obligation, beginning of year 34,551
Net OPEB obligation, end of year $ 25,273
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net OPEB
obligation for fiscal year 2013 and the previous two years were as follows:
Three -Year Trend Information
Percentage of
Annual OPEB
Annual OPEB Cost Net OPEB
Year Ended Cost Contributed Obligation
2011 $ 4,700 876.9% $ 67,785
2012 3,800 974.6% 34,551
2013 3,674 352.5% 25,273
Funded Status and Funding Progress. As of October 1, 2013, the date of the most recent actuarial
valuation, the actuarial accrued liability for benefits was $50,901, all of which was unfunded. The covered
payroll (annual payroll of active employees covered by the plan) was $5,933,331, and the ratio of the UAAL
to the covered payroll was 0.9 percent.
The actuarial valuations involve estimates of the value of reported amounts and assumptions about the
probability of events far into the future. Actuarially determined amounts are subject to continual revision
as actual results are compared to past expectations and new estimates are made about the future.
Calculations are based on the types of benefits provided with the plan at the time of each valuation and on
the pattern of sharing of costs between the employer and plan members to that point. Calculations reflect
a long-term perspective and assumptions used include techniques designed to reduce short-term volatility
in actuarial accrued liabilities and actuarial value of assets. The schedule of funding progress shown below
is required to present multi -trend information about whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liability for benefits. The City elected
to fund the OPEB on a pay-as-you-go basis and consequently, reports a zero balance for the actuarial value
of assets.
77
CITY OF SEBASTIAN, FLORIDA
Notes to Financial Statements
Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on
the substantive plan (the plan as understood by the employer and plan members) and include the types of
benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs
between the employer and plan members to that point. The actuarial methods and assumptions used
include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued
liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.
The required contribution was determined as part of the October 1, 2013 actuarial valuation using the
entry age normal (level percentage of pay) actuarial funding method. The actuarial assumptions included
(a) 4 percent investment rate of return (net of administrative expenses), (b) a 3 percent payroll growth
rate, (c) a 3 percent inflation rate, and (d) an annual healthcare trend rate of 9 percent initially, reduced
by decrements to an ultimate rate of 5 percent in 2017. The actuarial assumptions utilized the RP-2000
Combined Healthy Mortality Table projected to 2013. The plan's unfunded actuarial accrued liability is
being amortized as a level dollar of projected payroll on an open basis. The remaining amortization period
at October 1, 2013 was 30 years.
Termination Benefits
The City offers to pay 50% of the cost of single coverage group (health only) insurance for up to two years
for employees retiring after twenty years of service in a full-time capacity. During the year ended
September 30, 2013, one retiring employee made this election, and $14,880 was recorded at year end as
the total accrued termination benefits in the governmental activities of the government -wide financial
statements.
78
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
DST Revenue
Nonmajor
General Fund
Sales Tax
Redevelopment
Bonds
Funds
Total
Nonspendable:
Inventory
$ 63,101
$
$
$
$
$ 63,101
Prepaids
105,463
105,463
Long-term advances
200,000
552,511
752,511
Permanent fund corpus
-
-
771,327
771,327
Total nonspendable
368,564
552,511
771,327
1,692,402
Restricted for:
Debt service
-
-
1,554,867
183,936
1,738,803
Perpetual care
-
-
-
-
Infrastructure
2,155,211
36,899
2,192,110
Redevelopment
-
554,938
-
554,938
Stormwater
-
94,420
94,420
Law enforcement
28,632
67,679
96,311
Nonexpendable portion of
-
cemetery fund corpus
-
-
-
-
-
-
Totalrestricted
28,632
2,155,211
554,938
1,554,867
382,934
4,676,582
Committed for:
Recreational system development
-
-
-
-
548,927
548,927
Development of public parking
40,437
40,437
Total committed
-
589,364
589,364
Assigned for:
General employee events
2,277
-
2,277
Law enforcement events
4,743
4,743
Total assigned
7,020
7,020
Unassigned
5,065,242
-
-
-
-
5,065,242
Total fund balances,
governmental funds
$ 5,469,458
$ 2,707,722
$ 554,938
$ 1,554,867
$ 1,743,625
$ 12,030,610
79
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, 2013, was as follows:
Capital assets:
Capital assets not being depreciated
Capital assets being depreciated, net
Related debt:
Total bonds and notes payable
Net bond premium/discount
Net investment in capital assets
17. RESTATEMENT
Governmental Business -type
Activities Activities
$ 8,440,330
33,505,335
41,945,665
9,914,000
(7,084)
9,906,916
$ 84,527
10,804,946
10,889,473
42,972
42,972
$ 32,038,749 $ 10,846,501
The City adopted the provisions of GASB Statements No. 63, Financial Reporting of Deferred Outflows of
Resources, Deferred Inflows of Resources, and Net Position, and No. 65, Items Previously Reported as Assets
and Liabilities, in the current year. In addition to the revised classification of certain financial elements in the
financial statements, the implementation of GASB Statement No. 65 resulted in the elimination of bond
issuance costs as an asset. As a result of this change, net position of the governmental activities decreased by
$283,024.
In addition, net position was restated due to the correction of an error in the calculation of the amounts
related to the City's OPEB Plan. The beginning net OPEB obligation was modified to adjust for a change in the
participation rate of City employees from 90% to 5%, which the City considers a more realistic assumption,
based on actual participation. As a result of this change, net position of the governmental activities, the
airport fund, the golf course fund, and the building fund increased by $256,014, $12,444, $7,189, and $6,246,
respectively.
80
REQUIRED SUPPLEMENTARY INFORMATION
r1
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Employees' Retirement Plan
Schedule of Funding Progress
Single -employer Pension Trust Fund
Actuarial
Accrued
UAAL as a
Actuarial
Liability
Unfunded
Percentage
Actuarial
Value of
(AAL) -
AAL
Funded
Covered
of Covered
Valuation
Assets
Entry Age
(UAAL)
Ratio
Payroll
Payroll
Date
(a)
(b)
(b-a)
(a / b)
(c)
((b-a) / c)
10/1/2006
$ 4,711,294
$ 5,389,815
$ 678,521
87.41%
$ 1,769,613
38.34%
10/1/2008
5,474,816
6,127,531
652,715
89.35%
2,143,131
30.46%
10/1/2010
7,086,302
8,029,402
943,100
88.25%
2,205,042
42.77%
10/1/2012
8,843,096
9,793,255
950,159
90.30%
1,893,717
50.17%
10/1/2013
10,072,572
10,924,778
852,206
92.20%
2,131,399
39.98%
Schedule of Employer Contributions
Single -employer Pension Trust Fund
Annual
Year Ended
Required
City
State
Percentage
September 30,
Contributions
Contribution
Contribution
Contributed
2008
$ 456,928
$ 376,769
$ 122,800
109.33%
2009
557,439
404,104
137,782
97.21%
2010
701,998
566,910
134,852
99.97%
2011
736,420
602,943
133,477
100.00%
2012
559,868
436,386
123,482
100.00%
2013
506,560
396,603
123,482
102.67%
82
CITY OF SEBASTIAN, FLORIDA
Required Supplementary Information
Other Postemployment Benefits Plan
Schedule
of Funding Progress
Other Postemployment Benefits Plan
Actuarial
Accrued
UAAL as a
Actuarial
Liability
Unfunded
Percentage
Actuarial Value of
(AAL) -
AAL Funded
Covered
of Covered
Valuation Assets
Entry Age
(UAAL) Ratio
Payroll
Payroll
Date (a)
(b)
(b-a) (a / b)
(c)
((b-a) / c)
9/30/2010 $ $
98,100
$ 98,100 0%
$ 6,424,614
2%
9/30/2011
67,500
67,500 0%
6,426,614
1%
9/30/2012
50,901
50,901 0%
5,933,331
1%
Schedule of Employer Contributions
Other Postemployment Benefits Plan
Annual
Year Ended
Required Percentage
September 30,
Contributions Contributed
9/30/2010
$ 4,600 875%
9/30/2011
4,700 877%
9/30/2012
3,800 975%
83
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84
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
85
CITY OF SEBASTIAN, FLORIDA
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2013
Special Revenue Funds
Local
Law
Option
Parking
Recreation
Stormwater
Enforcement
Gas Tax
In -Lieu -of
Impact Fee
Utility
Forfeiture
Assets
Cash and cash equivalents
$
356
$
-
$
534,793
$
84,330
$ 7,624
Investments
-
40,437
16,564
29
60,055
Due from other governments
47,596
-
-
13,261
-
Total assets
$
47,952
$
40,437
$
551,357
$
97,620
$ 67,679
Liabilities
Accounts payable and
accrued liabilities
$
3,553
$
-
$
2,430
$
3,200
$ -
Due to other funds
7,500
-
-
Total liabilities
11,053
2,430
3,200
Fund balances:
Nonspendable
-
-
-
-
Restricted
36,899
-
-
94,420
67,679
Committed
-
40,437
548,927
-
-
Total fund balances
36,899
40,437
548,927
94,420
67,679
Total liabilities and
fund balances
$
47,952
$
40,437
$
551,357
$
97,620
$ 67,679
86
Debt Service
Capital Projects Funds
Permanent
Stormwater
Total
Utility
Stormwater
Nonmajor
Revenue
Capital
Transportation
Utility
Governmental
Bonds 2003
Improvements
Improvements
Improvements
Cemetery
Funds
$ 183,936
$ (37,559)
$
$ 31,872
$ 514,538
$ 1,319,890
-
-
-
256,789
373,874
-
37,724
-
-
98,581
$ 183,936
$ 165
$
$ 31,872
$ 771,327
$ 1,792,345
$ - $ 165 $
183,936
183,936
$ 183,936 $
165
165 $
$ 31,872 $ $ 41,220
- 7,500
31,872 48,720
- 771,327 771,327
- 382,934
589,364
771,327 1,743,625
$ 31,872 $ 771,327 $ 1,792,345
87
CITY OF SEBASTIAN, FLORIDA
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances - Nonmajor Governmental Funds
For the Year Ended September 30, 2013
Revenues
Taxes:
Motor fuel
Intergovernmental
Impact fees
Charges for services
Investment earnings
Otherrevenues
Total revenues
Expenditures
Current:
Public safety
Physical environment
Transportation
Culture and recreation
Debt Service:
Principal
Interest and fiscal charges
Capital outlay
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
Special Revenue Funds
Local
Law
Option
Parking
Recreation
Stormwater
Enforcement
Gas Tax
In -Lieu -of
Impact Fee
Utility
Forfeiture
$ 551,239
$ $
$
$
9,474
-
169,000
-
-
1,003,900
-
47
196
870
3,323
493
-
13,776
-
-
-
560,760
13,972
169,870
1,007,223
493
1,719
-
72,981
219,339
-
-
-
2,430
197,000
-
46,200
-
-
5,523
-
-
462,539
-
7,953
72,981
1,719
98,221
13,972
161,917
934,242
(1,226)
14,500
-
-
-
(266,096)
(306,211)
(1,007,376)
(251,596)
-
(306,211)
(1,007,376)
(153,375)
13,972
(144,294)
(73,134)
(1,226)
190,274
26,465
693,221
167,554
68,905
$ 36,899 $
40,437 $
548,927
$ 94,420 $
67,679
88
Debt Service Capital Projects Funds Permanent
Stormwater Total
Utility Stormwater Nonmajor
Revenue Capital Transportation Utility Governmental
Bonds 2003 Improvements Improvements Improvements Cemetery Funds
$ $ - $ $ $ $ 551,239
37,724 47,198
- 169,000
87,717 1,091,617
617 4,025 9,571
- - 1,825 - 15,601
617 37,724 1,825 91,742 1,884,226
1,719
37,724 30,500 141,205
- - 219,339
2,430
290,000
487,000
149,090
-
-
-
-
195,290
-
352,990
413,101
459,711
299,991
1,531,316
439,090
390,714
413,101
490,211
299,991
2,578,299
(438,473)
(352,990)
(411,276)
(490,211)
(208,249)
(694,073)
439,830
352,990
393,922
490,211
-
1,691,453
-
-
-
-
(5,399)
(1,585,082)
439,830
352,990
393,922
490,211
(5,399)
106,371
1,357
-
(17,354)
-
(213,648)
(587,702)
182,579
17,354
984,975
2,331,327
$ 183,936 $
$
- $
$
771,327
$ 1,743,625
89
CITY OF SEBASTIAN, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Local Option Gas Tax
For the Year Ended September 30, 2013
Revenues
Taxes:
Motor fuel
Intergovernmental
Investment earnings
Total revenues
Expenditures
Current:
Transportation
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Revenues over (under) expenditures
Other financing sources
Transfers in
Transfers out
Net changes in fund balance
Fund balance, beginning of year
Fund balance, end of year
Original Final
Budget Budget
Actual Over
(Under) Final
Actual Budget
$ 560,000 $ 560,000 $ 551,239 $ (8,761)
9,474 9,474 9,474
1,630 1,630 47 (1,583)
571,104 571,104 560,760 (10,344)
208,000
222,500
219,339
(3,161)
197,000
197,000
197,000
-
46,076
46,076
46,200
124
451,076
465,576
462,539
(3,037)
120,028
105,528
98,221
(7,307)
-
14,500
14,500
(100,000)
(266,096)
(266,096)
20,028
(146,068)
(153,375)
(7,307)
190,274
190,274
190,274
$ 210,302 $
44,206 $
36,899 $
(7,307)
The accompanying notes are an integral part of these basic financial statements.
90
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, 2013
Revenues
Investment earnings
Otherrevenues
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
$ 60 $
13,790
13,850
26,465
$ 40,315 $
Actual Over
Final (Under) Final
Budget r
ual Budget
60 $ 196 $ 136
13,790 13,776 (14)
13,850 13,972 122
26,465 26,465 -
40,315 $ 40,437 $ 122
a
CITY OF SEBASTIAN, FLORIDA
Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Recreation Impact Fee Special Revenue Fund
For the Year Ended September 30, 2013
Actual Over
Original
Final
r
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Impact fees
$ 38,350
$ 38,350 $
169,000
$ 130,650
Investment earnings
3,185
3,185
870
(2,315)
Total revenues
41,535
41,535
169,870
128,335
Expenditures
Current:
Culture and recreation
-
-
2,430
2,430
Capital outlay
5,523
5,523
Total expenditures
-
-
7,953
7,953
Revenue over(under)expenditures
41,535
41,535
161,917
120,382
Other financing sources (uses)
Transfers out
(330,000)
(281,958)
(306,211)
23,789
Net change in fund balances
(288,465)
(240,423)
(144,294)
144,171
Fund balance, beginning of year
693,221
693,221
693,221
-
Fund balance, end of year
$ 404,756
$ 452,798 $
548,927
$ 144,171
92
CITY OF SEBASTIAN, FLORIDA
Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Stormwater Utility Special Revenue Fund
For the Year Ended September 30, 2013
Revenues
Charges for services
Investment earnings
Otherrevenues
Total revenues
Expenditures
Current:
Physical environment
Revenues over (under) expenditures
Other financing uses
Transfers out
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Actual Over
Original Final (Under) Final
Budget Budget Actual Budget
$ 1,001,000 $ 1,001,000 $ 1,003,900 $ 2,900
5,957 5,957 3,323 (2,634)
1,006,957 1,006,957 1,007,223 266
45,100
45,100
72,981
27,881
961,857
961,857
934,242
(27,615)
(1,009,408)
(1,006,953)
(1,007,376)
2,032
(47,551)
(45,096)
(73,134)
(25,583)
167,554
167,554
167,554
$ 120,003 $
122,458 $
94,420 $
(25,583)
93
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, 2013
Revenues
Fines
Investment earnings
Contributions
Otherrevenues
Total revenues
Expenditures
Current:
Public safety
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Original
Budget
$ 8,000 $
125
2,000
10,125
10,125
68,905
79,030 $
Actual Over
Final (Under) Final
Budget Actual Budget
8,000 $ - $ (8,000)
125 493 368
2,000 - (2,000)
10,125 493 (9,632)
- 1,719 1,719
10,125 (1,226) (11,351)
68,905 68,905
79,030 $ 67,679 $ (11,351)
94
CITY OF SEBASTIAN, FLORIDA
Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Stormwater Utility Revenue Bonds 2003 Debt Service Fund
For the Year Ended September 30, 2013
Actual Over
Original
Final
(Under) Final
Budget
Budget
Actual
Budget
Revenues
Investment earnings
$ 1,056 $
1,056 $
617
$ (439)
Expenditures
Debt service:
Principal
290,000
290,000
290,000
-
Interest and fiscal charges
149,048
149,048
149,090
42
Total expenditures
439,048
439,048
439,090
42
Revenues over (under) expenditures
(437,992)
(437,992)
(438,473)
(481)
Other financing sources
Transfers in
439,408
439,408
439,830
422
Net change in fund balance
1,416
1,416
1,357
(59)
Fund balance, beginning of year
182,579
182,579
182,579
-
Fund balance, end of year
$ 183,995 $
183,995 $
183,936
$ (59)
95
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M.
AGENCY FUND
97
CITY OF SEBASTIAN, FLORIDA
Combining Statement of Changes in Assets and Liabilities
Agency Fund
For the Year Ended September 30, 2013
Balance Balance
October 1, September 30,
2012 Additions Deletions 2013
Performance Deposits
Assets
Cash and cash equivalents $ 11,930 $ $ $ 11,930
Investments, at fair value 220,000 220,000
Total assets $ 231,930 $ $ $ 231,930
Liabilities
Performance deposits held in escrow $ 231,930 $ $ $ 231,930
98
CAPITAL ASSETS
99
CITY OF SEBASTIAN, FLORIDA
Comparative Schedule by Source
Capital Assets Used in the Operation of Governmental Fund
September 30, 2013
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
Capital projects
Total investment in governmental funds capital assets
2013 2012
$ 8,319,588
$ 8,007,437
12,488,546
12,397,779
6,630,200
6,330,986
8,023,943
8,167,365
36,475,602
35,611,587
120,742
163,429
$ 72,058,621 $ 70,678,583
$ 5,330,341
$ 6,381,544
2,376,907
907,755
717,371
713,359
10,976,555
11,031,201
54,784
36,380
1,992,269
1,726,191
6,405,211
4,895,946
1,685,267
1,932,055
539,509
240,255
2,693,881
3,371,802
18,222,344
16,347,884
6,920,764
6,811,354
14,022,676
16,119,428
120,742
163,429
$ 72,058,621 $ 70,678,583
100
CITY OF SEBASTIAN, FLORIDA
Schedule of Activities by Function
Capital Assets Used in the Operation of Governmental Funds
September 30, 2013
Machinery
Non -Building
and
Functions / Programs
Land
Buildings
Improvements
Equipment
Infrastructure
Total
General government:
Legislative
$
$
$
$ 1,383
$
$ 1,383
City manager
1,612
1,612
City clerk
24,352
24,352
Finance
1,100
53,622
54,722
MIS
5,844
53,131
656,664
715,639
Facilities maintenance
133,430
21,188
117,188
271,806
Growth management
-
85,555
-
56,867
142,422
Non -departmental
3,646,929
6,184,990
126,636
204,375
52,699
10,215,629
Total general government
3,646,929
6,409,819
202,055
1,116,063
52,699
11,427,565
Public safety:
Special operations
-
-
-
95,223
-
95,223
Administration
9,560
3,347,151
89,320
281,313
3,727,344
School resource
-
-
-
69,943
69,943
Road patrol
2,440,044
2,440,044
Community policing
13,863
13,863
Code enforcement
-
51,947
51,947
Investigations
1,700
189,269
190,969
Support services
-
53,111
53,111
Communications
16,404
192,626
209,030
Building department
-
-
-
41,284
41,284
Total public safety
9,560
3,347,151
107,424
3,428,623
-
6,892,758
Transportation:
Central garage
-
130,488
82,419
155,294
674
368,875
Roads and drainage
47,125
162,044
972,058
960,835
15,716,609
17,858,671
Total transportation
47,125
292,532
1,054,477
1,116,129
15,717,283
18,227,546
Economic environment:
Non -departmental
2,308,392
1,040,589
6,562
-
-
3,355,543
Physical environment:
Stormwater
1,850
1,686,867
18,919,439
20,608,156
Cemetery
572,181
82,019
78,354
60,585
22,717
815,856
Total physical environment
572,181
82,019
80,204
1,747,452
18,942,156
21,424,012
Culture/recreation:
Parks and recreation
1,735,401
1,316,436
5,179,478
615,676
1,763,464
10,610,455
Total
$ 8,319,588
$ 12,488,546
$ 6,630,200
$ 8,023,943
$ 36,475,602
71,937,879
Construction in progress
120,742
Total
$ 72,058,621
101
CITY OF SEBASTIAN, FLORIDA
Schedule of Changes in Activities by Function
Capital Assets Used in the Operation of Governmental Funds
September 30, 2013
Capital Assets
Capital Assets
October 1,
Transfers
Transfers
September 30,
Functions / Programs
2012
Additions
Deletion
In
Out
2013
General government:
Judicial
$ 4,245
$ $
$ -
$ 2,862
$ 1,383
City manager
1,612
1,612
1,612
1,612
City clerk
20,350
4,002
-
-
24,352
Administrative services
54,722
-
1,612
1,612
54,722
MIS
703,537
2,861
900
10,141
-
715,639
Facilities maintenance
235,936
10,085
-
25,785
271,806
Growth management
130,137
-
12,285
142,422
Non -departmental
10,203,469
12,160
-
-
-
10,215,629
Total general government
11,354,008
29,108
900
51,435
6,086
11,427,565
Public safety:
Special operations
122,484
-
-
-
27,261
95,223
Administration
3,719,844
7,500
-
3,727,344
School resource
69,943
-
-
-
69,943
Road patrol
2,536,820
33,879
126,474
4,181
2,440,044
Community policing
17,086
-
-
3,223
13,863
Code enforcement
42,047
27,327
-
-
17,427
51,947
Investigations
199,839
-
8,995
3,223
3,098
190,969
Support services
53,111
-
-
-
53,111
Communications
222,117
13,087
209,030
Building department
41,284
-
-
-
-
41,284
Total public safety
7,024,575
68,706
148,556
3,223
55,190
6,892,758
Transportation:
Central garage
376,544
3,929
11,598
-
-
368,875
Roads and drainage
17,466,671
437,159
55,761
26,953
16,351
17,858,671
Total transportation
17,843,215
441,088
67,359
26,953
16,351
18,227,546
Economic environment:
Non -departmental
3,348,981
6,562
-
-
-
3,355,543
Physical environment:
Stormwater
20,210,299
881,964
473,105
27,261
38,263
20,608,156
Cemetery
515,865
299,991
-
-
-
815,856
Total physical environment
20,726,164
1,181,955
473,105
27,261
38,263
21,424,012
Culture/recreation:
Parks and recreation
10,218,211
442,989
57,763
17,427
10,409
10,610,455
Total
70,515,154
2,170,408
747,683
126,299
126,299
71,937,879
Construction in progress
163,429
43,612
86,299
-
-
120,742
Total
$ 70,678,583
$ 2,214,020 $
833,982
$ 126,299
$ 126,299
$ 72,058,621
102
INTERNAL CONTROL AND COMPLIANCE
103
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104
�►JR,ehmann
5070 North Highway AlA
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
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 19, 2014
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, 2013, 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 19, 2014.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal
control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City's
internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal
control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies,
in internal control that is less severe than a material weakness, yet important enough to merit
attention by those charged with governance.
105
Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies
may exist that were not identified. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion
on compliance with those provisions was not an objective of our audit, and accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance or other
matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
City's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
106
Rehmann
INDEPENDENT AUDITORS'
MANAGEMENT LETTER
February 19, 2014
Honorable Mayor and
Members of City Council
City of Sebastian
Sebastian, Florida
5070 North Highway AlA
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
www.rehmann.com
We have audited the financial statements of the City of Sebastian, Florida as of and for the fiscal year
ended September 30, 2013 and have issued our report thereon dated February 19, 2014.
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 the Florida Single Audit Act. We have issued our 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 Standard and Rules of the
Auditor General. Disclosures in those reports and schedule, which are dated February 19, 2014,
should be considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of
the Auditor General, which govern the conduct of local governmental entity audits performed in the
state of Florida and require that certain items be addressed in this letter.
The Rules of the Auditor General (Section 10.554(1)(i)l) require that we address in the management
letter, if not already addressed in the auditors' reports on Compliance and Internal Control or Schedule
of Findings and Questioned Costs, whether or not recommendations made in the preceding annual
financial audit report have been followed. There were no findings or comments in the prior year.
As required by the Rules of the Auditor General (Section 10.554(1)(i)2), the scope of our audit
included a review of the provisions of Section 218.415, Florida Statutes, regarding the investment of
public funds. In connection with our audit, we determined that the City of Sebastian, Florida complied
with Section 218.415, Florida Statutes.
The Rules of the Auditor General (Section 10.554(1)(i)3) require that we address in the management
letter any findings and recommendations to improve financial management, accounting procedures,
and internal controls. Below is our finding and recommendation.
Florida Statutes 166.241 (4) requires budget amendments to be completed within 60 days after year
end. The City did not complete the final budget amendment until December 11, 2013. We recommend
the City remain aware of the Statute deadlines and work to complete the budget amendments in a
timely manner.
107
The Rules of the Auditor General (Section 10.554(1)(i)4) require that we address violations of
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 more than
inconsequential. In connection with our audit, we did not identify any such findings.
The Rules of the Auditor General (Section 10.554(1)(i)5) provide that the auditor may, based on
professional judgment, report the following matters that have an inconsequential effect on financial
statements, considering both quantitative and qualitative factors: (1) violations of provisions of
contracts or grant agreements, fraud, illegal acts, or abuse, and (2) deficiencies in internal control
that are not significant deficiencies. In connection with our audit, we did not identify any such
The Rules of the Auditor General (Section 10.554(1)(i)6) also require that the name or official title
and legal authority for the primary government and each component unit of the reporting entity be
disclosed in the management letter, unless disclosed in the notes to the financial statements. The
legal authority for the City of Sebastian, Florida is disclosed in the 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.
As required by the Rules of the Auditor General (Section 10.554(1)(i)7.a), the scope of our audit
included a review of the provisions of Section 218.503(1), Florida Statutes, regarding financial
emergencies. In connection with our audit, we determined that the City of Sebastian, Florida has not
met any of the financial emergency conditions described in Section 218.503(1), Florida Statutes.
As required by the Rules of the Auditor General (Section 10.554(1)(i)7.b.), we determined that the
annual financial report for the City of Sebastian, Florida for the year ended September 30, 2013, filed
with the Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in
agreement with the annual financial audit report for the year ended September 30, 2012.
As required by the Rules of the Auditor General (Section 10.554(1)(i)7.b.), we determined that the
annual financial report for the City of Sebastian, Florida for the year ended September 30, 2013, filed
with the Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in
agreement with the annual financial audit report for the year ended September 30, 2013.
As required by the Rules of the Auditor General (Section 10.554(1)(i)7.c and 10.556(7)), we applied
financial condition assessment procedures. It is management's responsibility to monitor the entity's
financial condition, and our financial condition assessment was based in part on representations made
by management and the review of financial information provided by the same.
Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its
distribution is not limited. Auditing standards generally accepted in the United States of America
require us to indicate that this letter is intended solely for the information and use of management and
the Florida Auditor General of the State of Florida, and is not intended to be and should not be used by
anyone other than these specified parties.
108
March 12, 2014
Rehmann Robson
5070 North Highway A 1 A, Suite 250
Vero Beach, Florida 32963
_
Ladies and Gentlemen,
_
The following provides a written statement of explanation or rebuttal concerning the
auditor's findings and recommendations regarding the audit for the fiscal year ended
September 30, 2013, as required by Section 10.558(1) of the "Rules of the Auditor
General".
City Did Not Complete Budget Amendments Within 60 Days
As recommended, the City will remain aware of the Statute deadlines and work to
complete the budget amendments in a timely manner.
Sincerely,
Kenneth W. Killgore
Finance Director
City of Sebastian
^
108A
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STATISTICAL SECTION
109
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me
CITY OF SEBASTIAN, FLORIDA
Statistical Section Table of Contents
This part of the City's Comprehensive Annual Financial Report presents detailed information to assist the
user in understanding what the financial statements, note disclosures and required supplementary
information say about the overall economic condition of the City of Sebastian, Florida.
Page
Financial Trends These schedules contain trend information to help the reader
understand and evaluate how the City's financial condition,
performance and well-being have changed over time. 112
Revenue Capacity These schedules contain information to help the reader assess
the City's ability to generate its most significant local revenue
source, the property tax. 124
Debt Capacity These schedules present information to help the reader assess
the affordability of the City's current levels of outstanding debt
and its ability to issue additional debt in the future. 130
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. 138
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. 142
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.
ME
CITY OF SEBASTIAN, FLORIDA
Net Position by Component
Last Ten Fiscal Years
Governmental activities
Net investment in capital assets
Restricted
Unrestricted
Total governmental activities net position
Business -type activities
Net investment in capital assets
Restricted
Unrestricted
Total business -type activities net position
Primary Government
Net investment in capital assets
Restricted
Unrestricted
Total primary government net position
Fiscal Year
2013 2012 2011 2010
$ 32,038,749 $ 31,500,173 $ 31,541,953 $ 28,938,587
5,839,440 6,192,777 5,668,155 8,757,043
4,577,440 3,607,228 4,052,751 3,889,011
$ 42,455,629 $ 41,300,178 $ 41,262,859 $ 41,584,641
$ 10,846,501 $ 11,181,823 $ 11,850,561 $ 11,389,704
(306,497) (490,298) (644,620) (342,340)
$ 10,540,004 $ 10,691,525 $ 11,205,941 $ 11,047,364
$ 42,885,250 $ 42,681,996 $ 43,392,514 $ 40,328,291
5,839,440 6,192,777 5,668,155 8,757,043
4,270,943 3,116,930 3,408,131 3,546,671
$ 52,995,633 $ 51,991,703 $ 52,468,800 $ 52,632,005
' The large increases in unrestricted net position from 2004 to 2005 are mainly due to increase in State revenue sharing,
sales and use taxes, and tax revenues.
Z The large increases in unrestricted net position from 2005 to 2006 are mainly due to increase in tax revenues, franchise
fees, and interest earnings.
`sm
Table I - Unaudited
Fiscal Year
2009 2008 2007 2006 2005 2004
$ 26,744,896 $ 24,133,550 $ 21,469,456 $ 17,579,683 $ 17,103,399 $ 16,412,401
8,197,018 9,215,801 9,419,129 5,068,583 5,395,879 4,059,674
4,502,440 5,035,184 5,249,998 11,293,877 Z 9,081,345 ' 7,171,123
$ 39,444,354 $ 38,384,535 $ 36,138,583 $ 33,942,143 $ 31,580,623 $ 27,643,198
$ 10,725,676
$
9,111,251
$
8,895,501
$
8,798,612
$
7,459,945
$
4,264,961
98,320
570,149
570,890
560,581
574,105
506,006
86,517
753,076
1,303,886
1,896,539
738,519
1,712,657
$ 10,910,513
$
10,434,476
$
10,770,277
$
11,255,732
$
8,772,569
$
6,483,624
$ 37,470,572
$
33,244,801
$
30,364,957
$
26,378,295
$
24,563,344
$
20,677,362
8,295,338
9,785,950
9,990,019
5,629,164
5,969,984
4,565,680
4,588,957
5,788,260
6,553,884
13,190,416
9,819,864
8,883,780
$ 50,354,867
$
48,819,011
$
46,908,860
$
45,197,875
$
40,353,192
$
34,126,822
113
CITY OF SEBASTIAN, FLORIDA
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year
2013
2012
2011
2010
Expenses
Governmental activities:
General government
$
2,784,485
$ 2,640,677
$
2,766,575
$
3,309,381
Public safety
4,928,203
5,025,274
5,546,632
5,720,933
Physical environment
2,039,380
2,007,902
1,558,974
1,947,605
Transportation
1,845,429
1,800,432
2,263,367
1,863,551
Economic environment
155,214
170,960
208,518
135,885
Culture and recreation
1,232,345
1,239,512
1,227,198
1,240,383
Interest on debt
368,432
562,496
546,103
566,410
Total governmental activities expenses
13,353,488
13,447,253
14,117,367
14,784,148
Business -type activities:
Golf Course
1,377,039
1,394,731
1,355,266
1,388,158
Airport
1,146,905
1,166,588
1,188,788
1,067,525
Building
417,887
397,295
470,406
496,800
Total business -type activities expenses
2,941,831
2,958,614
3,014,460
2,952,483
Total primary government expenses
$
16,295,319
$ 16,405,867
$
17,131,827
$
17,736,631
Program Revenue
Governmental activities:
Charges for services:
General government
$
314,158
$ 214,488
$
197,945
$
203,915
Public safety
67,297
66,474
92,350
118,368
Physical environment
1,101,864
876,693
868,059
881,338
Culture and recreation
70,982
66,954
61,353
62,046
Operating grants and contributions
332,627
187,333
196,534
210,050
Capital grants and contributions
770,123
791,265
838,242
3,178,618
Total governmental activities program revenue
2,657,051
2,203,207
2,254,483
4,654,335
Business -type activities:
Charges for services:
Golf Course
1,302,441
1,394,844
1,382,421
1,335,647
Airport
481,759
491,367
485,229
468,698
Building'
706,964
419,705
401,021
356,264
Operating grants and contributions
-
-
-
-
Capital grants and contributions
230,868
150,083
900,340
904,853
Total business -type activities program revenue
2,722,032
2,455,999
3,169,011
3,065,462
Total primary government program revenue
$
5,379,083
$ 4,659,206
$
5,423,494
$
7,719,797
Net(expense)revenue
Governmental activities
$
(10,696,437)
$ (11,244,046)
$
(11,862,884)
$
(10,129,813)
Business -type activities
(219,799)
(502,615)
154,551
112,979
Total primary government net
(expense)revenue
$
(10,916,236)
$(11,746,661)
$
(11,708,333)
$
(10,016,834)
ISM
Fiscal Year
2009 2008 2007 2006
$ 3,169,851 $ 3,375,178 $ 3,083,609 $ 3,129,723
Table II - Unaudited
2005 2004
$ 3,262,276 $ 2,414,865
5,420,585
5,226,512
5,377,107
4,191,295
4,816,614
4,502,109
1,347,771
1,805,755
1,695,066
2,193,589
1,283,889
1,279,257
3,437,724
2,111,360
2,276,497
2,173,071
4,034,900
3,288,532
167,470
113,101
605,510
98,661
32,128
86,041
1,073,249
1,420,734
1,237,398
1,208,288
1,260,395
823,974
730,100
634,891
667,950
706,303
740,372
722,007
15,346,750
14,687,531
14,943,137
13,700,930
15,430,574
13,116,785
1,477,299
1,488,472
1,533,900
1,558,338
1,464,532
1,527,051
1,079,869
1,099,653
1,046,994
801,967
519,235
350,949
533,641
605,422
905,452
936,793
-
-
3,090,809
3,193,547
3,486,346
3,297,098
1,983,767
1,878,000
$ 18,437,559 $ 17,881,078 $ 18,429,483 $ 16,998,028 $ 17,414,341 $ 14,994,785
$ 220,073
$ 353,836
$ 422,897 $
533,482
$ 370,609 $
376,327
95,606
85,009
92,853
140,545
1,356,385
1,660,032
908,829
903,285
891,021
887,819
828,907
850,887
66,540
83,378
85,945
72,472
56,199
48,590
228,002
786,016
192,676
407,898
2,802,511
1,144,528
1,865,174
835,607
1,014,481
1,301,438
1,781,954
1,353,959
3,384,224
3,047,131
2,699,873
3,343,654
7,196,565
5,434,323
1,406,956
1,438,233
1,652,288
1,580,407
438,485
523,989
344,813
375,768
358,947
347,189
408,875
1,220,823
-
-
-
6,998
1,356,914
494,098
500,428
1,056,562
3,561,302
2,803,509
2,906,404
4,240,558
$ 6,945,526 $ 5,850,640 $ 5,606,277 $ 7,584,212
$ (11,962,526) $ (11,640,400) $ (12,243,264) $ (10,357,276)
470,493 (390,038) (579,942) 943,460
$ (11,492,033) $ (12,030,438) $(12,823,206) $ (9,413,816)
1,381,817 1,648,308
434,818 201,890
13,582 67,576
2,289,986 2,451,212
4,120,203 4,368,986
$ 11,316,768 $ 9,803,309
$ (8,234,009) $ (7,682,462)
2,136,436 2,490,986
$ (6,097,573) $ (5,191,476)
continued...
115
CITY OF SEBASTIAN, FLORIDA
Changes in Net Position
Last Ten Fiscal Years
General revenue and other changes in net position
Governmental Activities:
Property taxes, levied for general purposes
Sales and use taxes
Franchise fees
State shared revenues not restricted
to specific programs
Investment earnings
Miscellaneous
Transfers
Total governmental activities
Business -type activities:
Fiscal Year
2013 2012 2011
$3,221,304 $ 3,063,495 $ 3,453,778
5,123,046
4,852,413
4,751,021
1,118,886
1,124,568
1,184,686
2,063,450
1,934,733
1,868,555
74,650
82,129
111,943
315,296
201,538
171,119
(37,734)
22,489
-
11,878,898
11,281,365
11,541,102
2010
$ 4,164,128
4,765,200
1,228,692
1,825,215
144,432
149,453
(7,020)
12,270,100
Investment earnings
4,391
6,563
4,026
15,658
Miscellaneous
274
4,125
-
1,194
Transfers
37,734
(22,489)
-
7,020
Total business -type activities
42,399
(11,801)
4,026
23,872
Total primary government general revenue
$ 11,921,297
$ 11,269,564
$ 11,545,128
$ 12,293,972
Change in net position
Governmental activities
$ 1,182,461
$ 37,319
$ (321,782) s
$ 2,140,287
Business -type activities
(177,400)
(514,416)
158,577
136,851
Total primary government change in net position $ 1,005,061 $ (477,097) $ (163,205) $ 2,277,138
' The building operation was reclassified from being part of the General Fund operation to an enterprise fund operation
at the beginning of fiscal year 2006.
z The large increases in transfers from 2005 to 2006 are mainly due to the one time transfer of building reserve to
building fund due to the reclassification of fund type for the building operation.
s The reduction in the change in net position for governmental funds can be attributed to less income being received
resulting in a smaller spread between revenues and expenditures, thereby using net position for revenue shortfalls.
116
Fiscal Year
2009 2008 2007 2006
$ 4,801,924 $ 5,149,047 $ 5,089,841 $ 4,645,050
2005 2004
$ 4,017,555 $ 3,420,971
4,670,106
4,753,718
4,776,691
4,907,906
4,718,691
4,035,545
1,327,253
1,199,762
1,106,698
1,253,749
886,390
770,600
1,821,347
1,989,606
2,083,523
2,242,292
2,138,020
1,721,956
261,203
634,919
1,147,931
827,224
398,518
398,158
140,512
159,300
192,300
256,780
118,760
388,562
-
-
42,720
(1,414,205)
(106,500)
(445,844)
13,022,345
13,886,352
14,439,704
12,718,796
12,171,434
10,289,948
5,544
54,237
137,207
125,498
45,709
23,774
-
-
-
-
300
261
-
-
(42,720)
1,414,205 z
106,500
445,844
5,544
54,237
94,487
1,539,703
152,509
469,879
$ 13,027,889 $ 13,940,589 $ 14,534,191 $ 14,258,499 $ 12,323,943 $ 10,759,827
$ 1,059,819 $ 2,245,952 $ 2,196,440 $ 2,361,520
476,037 (335,801) (485,455) 2,483,163
$ 1,535,856 $ 1,910,151 $ 1,710,985 $ 4,844,683
$ 3,937,425 $ 2,607,486
2,288,945 2,960,865
$ 6,226,370 $ 5,568,351
concluded
`fn
CITY OF SEBASTIAN, FLORIDA
Fund Balances, Governmental Funds
Last Ten Fiscal Years
Governmental funds
General Fund:
Nonspendable
Committed
Assigned
Unassigned
Total General Fund
All other governmental funds:
Nonspendable
Restricted
Committed
Total all other governmental funds
Total governmental funds
Fiscal
Year
2013
2012
2011
2010
$ 368,564
$ 370,450
$ 346,995
$ 352,248
-
2,861,708
2,949,139
3,063,585
7,020
35,707
21,911
31,656
5,065,242
1,734,307 Z
1,784,413
2,164,910
5,440,826
5,002,172
5,102,458
5,612,399
1,323,838 1,289,693
4,647,950 4,371,826
589,364 719,686
6,561,152 6,381,205
$ 12,001,978 $ 11,383,377
1,494,779 859,463
4,748,376 7,897,580 '
6,243,155 8,757,043
$ 11,345,613 $ 14,369,442
' The significant reduction in restricted fund balance reported in all other governmental funds from 2008 to 2009 is a
result of the significant completion of the Indian River Drive/Main Street and Pedestrian Bridge projects, along with
the significant construction completed on the Collier Canal Retrofit project.
Z Reduction in unassigned fund balance to fund operation
118
Table III - Unaudited
Fiscal Year
2009 2008 2007 2006 2005 2004
$ 357,696 $
381,528
$ 368,609
$ 106,192
$ 160,964
$ 59,921
3,083,463
3,502,560
3,742,617
4,844,674
5,546,959 z
5,411,621 z
1,983
33,453
19,055
9,856
3,761
5,140
2,324,972
2,390,641
2,260,507
1,518,350
391,783 z
(361,790) z
5,768,114
6,308,182
6,390,788
6,479,072
6,103,467
5,114,892
830,029
771,927
694,506
656,160
578,367
542,999
8,557,389 '
12,446,260
12,926,545
14,783,299 Z
13,392,801 z
13,815,771
9,387,418
13,218,187
13,621,051
15,439,459
13,971,168
14,358,770
$ 15,155,532 $
19,526,369
$ 20,011,839
$ 21,918,531
$ 20,074,635
$ 19,473,662
fim
CITY OF SEBASTIAN, FLORIDA
Changes in Fund Balances For Governmental Funds
For the Last Ten Fiscal Years
Revenues
Taxes
Franchise fees
Charges for services
Licenses, fees and permits
Fines and penalties
Intergovernmental
Impact fees
Special assessments
Investment earnings
Otherrevenues
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
2013
Fiscal Year
2012 2011 2010
$ 8,894,880 $ 8,465,990 $ 8,762,729 $ 9,525,074
1,118,886
1,124,568
1,184,686
1,228,692
45,500
22,431
1,121,967
1,154,739
2,411,395
2,088,038
23,646
33,182
169,000
58,500
81,534
90,948
1,462,522
1,158,075
2,249,447
4,572,550
60,190
57,575
42,250
26,000
78,411
86,516
-
-
22,406
216,091
103,795
228,216
315,296
201,888
224,823
169,039
14,578,486
13,479,672
13,794,877
17,028,440
2,447,893
2,410,345
2,539,211
2,699,289
4,425,000
4,523,802
5,030,708
4,938,147
1,075,162
1,042,349
1,166,309
1,210,823
1,158,945
1,208,411
1,217,521
1,405,310
122,730
138,531
188,918
129,352
847,781
876,502
903,836
977,780
1,307,000
3,321,000
1,203,000
2,142,190
393,447
472,399
521,152
577,593
2,115,561
1,767,058
4,048,051
6,189,026
13,893,519
15,760,397
16,818,706
20,269,510
$ 684,967
$ (2,280,725)
$ (3,023,829) $
(3,241,070)
-
2,296,000
-
2,462,000
3,598,949
3,694,765
5,376,658
4,486,626
(3,636,683)
(3,672,276)
(5,376,658)
(4,493,646)
(37,734)
2,318,489
2,454,980
$ 647,233
$ 37,764
$ (3,023,829) $
(786,090)
14.0%
27.1%
13.5%
19.3%
120
Table IV - Unaudited
Fiscal Year
2009 2008 2007 2006 2005 2004
$ 10,065,806 $ 10,504,155 $ 10,554,617 $ 10,269,451 $ 9,483,664 $ 8,179,344
1,327,253
1,199,762
1,106,698
1,253,749
886,390
770,600
1,186,161
1,209,617
1,271,102
517,605
936,530
962,677
29,151
163,471
186,875
244,370
1,587,675
1,867,920
88,938
65,246
71,314
77,776
95,699
118,918
3,270,854
2,674,761
2,463,628
2,852,293
5,561,695
3,115,520
13,975
32,825
56,875
337,675
385,775
557,700
3,849
-
-
819,286
11,023
28,424
250,914
647,312
1,062,043
827,224
398,518
398,158
176,430
461,553
244,629
294,695
144,057
378,268
16,413,331
16,958,702
17,017,781
17,494,124
19,491,026
16,377,529
2,976,896
3,087,789
2,999,652
2,494,863
2,974,736
2,231,532
4,926,714
4,677,618
4,700,447
3,813,908
4,349,639
3,950,228
1,448,067
1,368,593
1,301,719
1,850,642
910,794
1,125,727
1,696,254
1,545,045
1,733,697
1,672,983
3,616,076
2,863,397
167,470
113,101
80,279
98,661
32,128
86,041
1,148,408
1,079,379
975,087
926,846
995,406
747,131
1,218,995
1,326,182
1,284,418
1,248,378
1,218,023
985,974
706,093
611,554
643,305
678,682
711,736
887,564
6,495,271
3,634,910
5,242,590
1,451,060
3,975,015
9,021,558
20,784,168
17,444,171
18,961,194
14,236,023
18,783,553
21,899,152
$ (4,370,837)
$ (485,469)
$ (1,943,413)
$ 3,258,101
$ 707,473
$ (5,521,623)
7,756,780
5,196,376
5,679,896
5,158,296
3,785,981
3,745,265
2,745,754
(5,196,376)
(5,679,896)
(5,115,576)
(5,200,186)
(3,851,765)
(3,191,598)
42,720
(1,414,205)
(106,500)
7,310,936
$ (4,370,837)
$ (485,469)
$ (1,900,693)
$ 1,843,896
$ 600,973
$ 1,789,313
13.5%
14.0%
14.1%
15.1%
13.0%
14.5%
`PAI
CITY OF SEBASTIAN, FLORIDA
Program Revenues by Function/Program
Last Ten Fiscal Years
Fiscal Year
. 2013
2012
2011
2010
Program Revenues
Governmental activities:
General government
$ 471,299 $
230,550 $
243,039
$ 209,144
Public safety
233,309
228,392
234,437
304,630
Physical environment
1,101,864
876,693
930,018
881,338
Transportation
560,713
560,055
743,383
614,305
Economic environment
-
13,998
-
2,556,872
Culture and recreation
289,866
293,519
103,606
88,046
Total governmental activities
2,657,051
2,203,207
2,254,483
4,654,335
Business -type activities:
Charges for services:
Golf Course
1,302,441
1,394,892
1,382,421
1,335,647
Airport
712,627
641,455
1,385,569
1,373,551
Building'
706,964
426,215
401,021
356,264
Total business -type activities
2,722,032
2,462,562
3,169,011
3,065,462
Total primary government $ 5,379,083 $ 4,665,769 $ 5,423,494 $ 7,719,797
' The building operation was reclassified from being part of the General Fund operation to an enterprise fund
operation at the beginning of fiscal year 2006.
z The significant increase in business -type activities for the airport from 2008 to 2009 is mainly due to capital grant
funding from the Florida Department of Transportation and the Federal Aviation Administration.
2009 2008
$ 226,003
$ 377,305 $
299,119
515,997
1,408,829
1,256,277
612,335
619,949
6,000
-
831,938
277,603
3,384,224
3,047,131
Fiscal Year
2007 2006
Table V - Unaudited
2005 2004
450,267 $
579,591 $
587,527 $
392,471
249,756
306,702
1,537,557
1,850,710
891,021
890,092
898,821
914,318
721,103
900,365
3,392,883
1,670,534
-
30,059
-
-
387,726
636,845
779,777
606,290
2,699,873
3,343,654
7,196,565
5,434,323
1,406,955 1,438,233 1,652,288 1,587,405 1,395,399 1,715,884
1,795,399 Z 1,018,087 845,241 1,432,330 2,724,804 2,653,102
358,948 347,189 408,875 1,220,823 - -
3,561,302 2,803,509 2,906,404 4,240,558 4,120,203 4,368,986
$ 6,945,526 $ 5,850,640 $ 5,606,277 $ 7,584,212 $ 11,316,768 $ 9,803,309
123
CITY OF SEBASTIAN, FLORIDA
Tax Revenue by Source
Governmental Funds
For the Last Ten Fiscal Years
(Rate per $1,000 of assessed value)
Fiscal Year
F
Ended
Property
Public
Sales
Tax Year
September 30
Taxes
Utility
Tax
2003
2004
$ 3,420,971 $
1,854,632
$ 2,180,913 $
2004
2005
4,017,555
2,005,124
2,713,567
2005
2006
4,645,050
2,183,164
2,724,742
2006
2007
5,089,841
2,216,381
2,560,310
2007
2008
5,149,047
2,250,781
2,502,937
2008
2009
4,801,924
2,341,458
2,328,648
2009
2010
4,164,128
2,437,050
2,328,150
2010
2011
3,453,778
2,392,345
2,358,676
2011
2012
3,063,495
2,387,553
2,464,240
2012
2013
3,221,304
2,534,434
2,587,903
Table VI - Unaudited
rl-
Motor
Mi I lage
Fuel
Tot
Rate
722,828
$ 8,179,344
4.5904
747,418
9,483,664
4.5904
716,495
10,269,451
3.9325
688,085
10,554,617
3.0519
601,390
10,504,155
2.9917
593,776
10,065,806
3.3456
595,746
9,525,074
3.3456
557,930
8,762,729
3.3041
550,702
8,465,990
3.3041
551,239
8,894,880
3.7166
IN]
CITY OF SEBASTIAN, FLORIDA
Direct and Overlapping Property Tax Rates
For the Last Ten Fiscal Years
(Rate per $1,000 of taxable value)
Table VI - Unaudited
City Direct Rates
Overlapping Rates
° - 1
County
School Board
Tax
Fiscal
Basic
Debt Total Total
Basic
Debt
Year
Year
Rate
Service Direct County '
Rate
Service
Total
Other
2003
2004
4.5904
0.0000 4.5904 7.9396
8.1790
0.5310
8.7100
1.69278
2004
2005
4.5904
0.0000 4.5904 7.3505
8.0190
0.4800
8.4990
1.43029
2005
2006
3.9325
0.0000 3.9325 5.6904
7.8800
0.3600
8.2400
1.60850
2006
2007
3.0519
0.0000 3.0519 5.3661
7.1630
0.2800
7.4430
1.47940
2007
2008
2.9917
0.0000 2.9917 5.1485
7.2680
0.2700
7.5380
1.38160
2008
2009
3.3456
0.0000 3.3456 6.2861
6.7600
0.2800
7.0400
1.11204
2009
2010
3.3456
0.0000 3.3456 6.2693
7.2960
0.3000
7.5960
1.33570
2010
2011
3.3041
0.0000 3.3041 6.2860
7.9200
0.3000
8.2200
1.35050
2011
2012
3.3041
0.0000 3.3041 6.9590
7.8940
0.3500
8.2440
1.35460
2012
2013
3.7166
0.0000 3.7166 6.2572
7.9230
0.3900
8.3130
1.35460
Not Tax rates are uniformly applied to taxable values based on a single millage rate determined by each taxing entity. The millage rate is expressed as $1.00
per $1,000 of the taxable value.
Millage includes General Fund, MSTUs, Emergency Services District and Land Bonds
All Special Taxing Districts
Source: Indian River County Property Appraiser's Office
125
CITY OF SEBASTIAN, FLORIDA
Actual Value of Taxable Property
For the Last Ten Fiscal Years
Real Property
Tax
Fiscal
Assessed
Estimated
Year
Year
Value
Actual Value
2003
2004
$ 946,293,950
$ 1,182,867,438 $
2004
2005
1,157,275,164
1,446,593,955
2005
2006
1,526,923,406
1,908,654,258
2006
2007
2,124,615,672
2,655,769,590
2007
2008
2,054,408,055
2,568,010,069
2008
2009
1,933,934,630
2,417,418,288
2009
2010
1,650,311,449
2,062,889,311
2010
2011
1,392,267,434
1,740,334,293
2011
2012
1,273,059,710
1,591,324,639
2012
2013
1,210,328,690
1,512,910,863
Source: Indian
River County Property Appraiser
Ratio of Taxable to Actual Value
80%
-
65.4% 66.7% 68.5% 67.8%
70/ _ f�3:lid
L
60%--
0
50% _
53.2%
40%
30%
20%
10%
0%
2003
2004 2005 2006 2007 2008
Fiscal Year
Personal Property
Assessed
Estimated
Value
Actual Value
48,613,628
$ 48,613,628
51,330,277
51,330,277
51,827,624
51,827,624
55,913,696
55,913,696
64,899,942
64,899,942
62,476,508
62,476,508
56,920,223
56,920,223
55,234,086
55,234,086
48,922,492
48,922,492
47,410,545
47,410,545
f
54.2% 55.0% 53.5%
52.6%
2009 2010 2011 2012
126
Table VIII - Unaudited
Less:
Total
Total
Ratio of
Tax -Exempt
Taxable
Estimated
Taxable to
Property
Value
Actual Value
Actual Value
$ 217,554,663 $
777,352,915
$ 1,231,481,066
63.1%
228,262,825
980,342,616
1,497,924,232
65.4%
271,466,364
1,307,284,666
1,960,481,882
66.7%
322,318,753
1,858,210,615
2,711,683,286
68.5%
334,302,515
1,785,005,482
2,632,910,011
67.8%
676,808,522
1,319,602,616
2,479,894,796
53.2%
558,090,532
1,149,141,140
2,119,809,534
54.2%
460,752,786
986,748,734
1,795,568,379
55.0%
444,524,142
877,458,060
1,640,247,130
53.5%
437,040,114
820,699,121
1,560,321,408
52.6%
fiNN
CITY OF SEBASTIAN, FLORIDA
Principal Property Tax Payers
Current Year and Nine Years Ago
2013 Fiscal Year
Percentage
of Total City
Taxable Taxable Taxable
Assessed Assessed Assessed
Taxpayer Value I Rank Value Value
Florida Power i3 Light (Utility/Electric)
Wal-Mart Stores, Inc. (Retail)
Park Place Community, LLC (Rental/Retail)
BW US 1, Inc. (Commercial)
IPF/Sebastian, LLC (Retail)
Bellsouth Communications (Utility/Telephone)
Hartwell Groves, Inc. (Commercial)
Sebastian Medical Suites (Healthcare)
Sebastian Inlet Marina Et Trading Co, Inc.
(Restaurant/Hotel)
Angel Enterprises LLC (Retail) -
WinnDixie CR512 Shopping Center
Ruth Guest House, Inc. (Rental/Retail)
James T Turner (MHP/Rental)
Oyster Point Resort Condo (Time Share/Rental)
Comcast of Florida, Inc. (Communications)
Sandy Pines LTD (Rental)
Total Taxable Value
Source: Indian River County Property Appraiser
92.87%
$ 13,865,501
1
1.69 %
$ 13,512,56
8,370,920
2
1.02
11,685,26
6,686,739
3
0.81
8,096,91
5,589,340
4
0.68
6,289,50
4,910,100
5
0.60
4,742,812
6
0.58
3,975,240
7
0.48
3,891,480
8
0.47
Table IX - Unaudited
2004 Fiscal Year
2
9
4
0
Percentage
of Total City
Taxable
Assessed
Rank
Value
1
1.74
2
1.50
3
1.04
4
0.81
3,297,870 9
0.40 3,512,390
7
0.45
3,256,080 10
0.40 $ -
-
-
---- 3,923,550
5
0.50
---- 3,784,200
6
0.49
---- 3,224,000
8
0.41
---- 3,008,500
9
0.39
-
---- 2,736,990
10
0.35
$ 58,586,082
7.13 % $ 59,773,875
7.68
$ 820,699,121
$ 777,352,915
Concentration of 2013 Taxpayers
■Top Ten Taxpayers
7.13%
®All Other Taxpayers
128
CITY OF SEBASTIAN, FLORIDA Table X - Unaudited
Property Tax Levies and Collections
For the Last Ten Fiscal Years
Collected within the
Fiscal Year of the Levy Total Collections to Date
Taxes Levied
Delinquent and
Tax
Fiscal
for the
F
Percentage
Penalty Tax
Percentage
Year
Year
Fiscal Year
Amount
of Levy
Collections
Amount
of Levy
2003
2004
$ 3,216,940
$ 3,130,521
97.31 %
34,247
3,164,768
98.38
2004
2005
3,888,488
3,723,912
95.77
1,712
3,725,624
95.81
2005
2006
4,426,281
4,300,217
97.15
39
4,300,256
97.15
2006
2007
4,747,938
4,537,100
95.56
9,429
4,546,529
95.76
2007
2008
4,919,994
4,634,338
94.19
2,906
4,637,244
94.25
2008
2009
4,441,535
4,225,106
95.13
1,694
4,226,800
95.17
2009
2010
3,844,658
3,716,797
96.67
17,723
3,734,520
97.14
2010
2011
3,260,316
3,144,864
96.46
11,294
3,156,158
96.81
2011
2012
2,899,209
2,799,146
96.55
9,279
2,808,425
96.87
2012
2013
3,050,099
2,947,248
96.63
7,733
2,954,981
96.88
Source: Indian River County Property Appraiser and Department of Revenue, Certification of Final Taxable Value, DR-422.
20
18
16
14
12
10
8
6
4
2
Total Tax Collections
2004 2005 2006 2007 2008 2009
Fiscal Year
2010 2011 2012 2013
129
CITY OF SEBASTIAN, FLORIDA
Ratios of Outstanding Debt By Type
For the Last Ten Fiscal Years
Business -Type
Activities
Roadway
Infrastructure
Heavy
Stormwater
Golf Course
Total
Fiscal
Improvement
Sales Tax
Equipment
Utility Revenue
Revenue
Primary
Year
Notes
` Bonds
Lease
Bonds
Bonds
Government
2004
2,209,745
11,140,000
550,452
5,525,000
1,885,000
21,310,197
2005
2,004,718
10,490,000
422,455
5,290,000
1,395,000
19,602,173
2006
1,790,544
9,825,000
288,251
5,055,000
1,140,000
18,098,795
2007
1,566,839
9,145,000
147,538
4,815,000
870,000
16,544,377
2008
1,333,197
8,445,000
-
4,570,000
590,000
14,938,197
2009
1,089,203
7,725,000
4,315,000
300,000
13,429,203
2010
2,414,000
6,980,000
4,055,000
-
13,449,000
2011
2,246,000
6,215,000
3,785,000
12,246,000
2012
2,296,000
5,420,000
3,505,000
11,221,000
2013
2,099,000
4,600,000
3,215,000
9,914,000
Primary Government Debt
80.00
60.00
c
0
40.00
20.00 4/ 4
•
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Fiscal Year
130
Table XI - Unaudited
Percentage
of Personal Per
Income Capita
0.36
1,100
0.31
978
0.25
835
0.22
738
0.19
652
0.21
591
0.20
587
0.17
558
0.15
510
(' )
447
131
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132
CITY OF SEBASTIAN, FLORIDA
Ratios of General Bonded Debt Outstanding
For the Last Ten Fiscal Years
General
Bonded Debt Outstanding
Fiscal
Applicable
Legal
Year
Debt Limit
to Limit
Debt Margin
2004
$ 38,867,646
$ 2,209,745
$ 36,657,901
2005
49,017,131
2,004,718
47,012,413
2006
65,364,233
1,790,544
63,573,689
2007
92,910,531
1,566,840
91,343,691
2008
89,250,574
1,333,197
87,917,377
2009
65,980,131
1,089,203
64,890,928
2010
57,457,057
2,414,000
55,043,057
2011
49,337,437
2,246,000
47,091,437
2012
43,872,903
2,296,000
41,576,903
2013
41,034,956
2,099,000
38,935,956
Table XII - Unaudited
Percentage of
Per
Debt Limit
Capita
5.69%
$ 1,893
4.09%
2,345
2.74%
2,934
1.69%
4,073
1.49%
3,835
1.65%
2,856
4.20%
2,401
4.55%
2,147
5.23%
1,890
5.12%
1,754
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
133
CITY OF SEBASTIAN, FLORIDA
Legal Debt Margin Information
For the Last Ten Fiscal Years
Legal Debt Margin as a Percentage of Debt Limit
2013
Debt limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the
limit as a percentage of debt limit
Legal Debt Margin Calculation for Fiscal Year 2013
Assessed value
$1,257,739,235
Less: Exempt property
(437,040,114)
820,699,121
Debt limit (5% of assessed value)
41,034,956
Debt applicable to limit:
General obligations
9,914,000
Less: Revenue bonds
(7,815,000)
Total net debt applicable to limit 2,099,000
Legal debt margin $ 38,935,956
Fiscal Year
2012 2011
$ 41,034,956 $ 43,872,903 $ 49,337,437
2,099,000 2,296,000 2,246,000
$ 38,935,956 $ 41,576,903 $ 47,091,437
5.12% 5.23% 4.55%
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 30,2013.
134
Table XIII - Unaudited
Fiscal Year
2010
2009
2008
2007
2006
2005
2004
$ 57,457,057
$ 65,980,131
$ 89,250,274
$ 92,910,531
$ 65,364,233
$ 49,017,131 $
38,867,646
2,414,000
1,089,203
1,333,197
1,566,840
1,790,544
2,004,718
2,209,745
$ 55,043,057
$ 64,890,928
$ 87,917,077
$ 91,343,691
$ 63,573,689
$ 47,012,413 $
36,657,901
4.20%
1.65%
1.49%
1.69%
2.74%
4.09%
5.69%
135
CITY OF SEBASTIAN, FLORIDA
Pledged -Revenue Coverage
For the Last Ten Fiscal Years
Recreational Facilities Improvement and Refunding Revenue Bonds, Series 2001
Debt Service
Less:
Net
Fiscal
Gross
Operating
Available
I
Year
Revenue'
Expensesz
Revenue
Principal
Interest
Total
Coverage a
2004
$ 1,497,053
$ 1,108,770
$ 388,283
$ 230,000
$ 80,890
$ 310,890
1.25
2005
1,395,436
1,023,002
372,434
240,000
71,490
311,490
1.20
2006
1,628,015
1,165,411
462,604
250,000
61,690
311,690
1.48
2007
1,701,171
1,218,382
482,789
255,000
51,590
306,590
1.57
2008
1,455,749
1,174,169
281,580
270,000
41,090
311,090
0.91
2009
1,408,535
1,178,144
230,391
570,000
49,860
619,860
0.37
2010
1,341,555
1,129,651
211,904
300,000
21,700
321,700
0.66
2011
-
-
-
-
-
-
-
2012
2013
continued...
Note: Detail regarding the City's outstanding debt can be found in the notes to the financial statements.
' Total revenues including charges for services, rents and interest.
z Total direct operating expenses excludes depreciation, amortization, annual Airport lease payment and one time hurricane repair cost.
3 Required coverage was 1.25. Final payment was made on September 30, 2010.
4 Total revenues consist of stormwater utility fees and interest.
5 Required coverage is 1.35.
136
Table XIV - Unaudited
Stormwater Utility Revenue Bonds, Series 2003
Debt Service
Gross
Revenues4
Principal
Interest
Total
Coverage 5
779,724
$ 105,000
$ 104,386
$ 209,386
3.72
792,886
240,000
206,673
446,673
1.78
908,576
235,000
201,973
436,973
2.08
932,183
240,000
197,273
437,273
2.13
856,568
245,000
191,873
436,873
1.96
814,419
255,000
185,135
440,135
1.85
858,664
260,000
177,485
437,485
1.96
816,415
270,000
169,035
439,035
1.86
810,382
280,000
159,248
439,248
1.84
1,007,221
290,000
148,048
438,048
2.30
concluded
137
CITY OF SEBASTIAN, FLORIDA
Demographic and Economic Statistics
For the Last Ten Calendar Years
Personal Per
Income Capita
(thousands Personal
ear 06pulation of dollars)' Income'
2004
19,365
$ 5,932,299
2005
20,048
6,373,953
2006
21,666
7,320,877
2007
22,426
7,552,059
2008
22,924
7,976,086
2009
22,722
6,534,146
2010
22,922
6,737,286
2011
21,929
7,080,348
2012
21,995
7,429,653
2013
22,188
4
Median
Household School Unemployment
Income' Enrollment z Rate'
$ 47,801
$ 41,522
4,917
9.8
50,276
44,450
5,258
4.8
56,383
45,034
5,604
4.9
56,852
47,563
5,117
7.0
58,528
48,267 5
4,710
9.8
47,689
43,685 5
3,751
14.5
48,276
47,525
5,167
14.5
50,977
42,053
5,228
13.4
52,855
42,638
5,208
11.8
4
4
6,739
8.8
Sources:
' Florida Research Et Economic Database (FRED). Information available for Indian River County Only.
Z Indian River County School Board
3 Indian River County Property Appraiser
4 Information not yet available.
5 The school population appears to have declined as a result of loss of job opportunities. Our community lost
many construction jobs as a result of the declining economy.
Note: School enrollment consists of Sebastian River High School, Sebastian River Middle School, Liberty Magnet,
Treasure Coast Elementary, Pelican Island Elementary, Sebastian Elementary and Sebastian Charter Junior High
School.
138
Table XV - Unaudited
Property
Total
State
Taxes
Taxable
Unemployment
Per
Property
Rate
Capita
Value 3
4.7
$ 176.66 $
777,352,915
3.8
200.40
980,342,616
3.6
214.39
1,307,284,666
4.4
226.96
1,858,210,615
7.1
224.61
1,785,005,482
11.2
211.33
1,319,602,616
11.3
181.67
1,149,141,140
10.6
157.50
986,748,734
8.6
139.28
877,458,060
6.9
145.18
820,699,121
139
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140
CITY OF SEBASTIAN, FLORIDA Table XVI - Unaudited
Principal Employers
Current Year and Nine Years Ago
pp
2013
2004
Percentage of
Percentage of
Total County
Total County
Employer
Employees
Rank
Employment
Employees
Rank
Employment
School District of Indian River County (Government)
2,013
1
3.39 %
2,027
1
4.04
Indian River County (Government)
1,348
2
2.27
1,445
2
2.88
Indian River Medical Center (Healthcare)
1,699
3
2.86
1,373
3
2.73
Publix Supermarkets (Food/Beverage)
1,092
4
1.84
931
4
1.85
Piper Aircraft, Inc. (Manufacturer)
750
5
1.26
688
5
1.37
Wal-Mart (Retail)
701
6
1.18
540
7
1.08
Sebastian River Medical Center (Healthcare)
576
7
0.97
500
8
1.00
Johns Island (Residential/Resort)
550
8
0.93
500
8
1.00
City of Vero Beach (Government)
460
9
0.78
607
6
1.21
Visiting Nurse Association (Healthcare)
401
10
0.68
332
11
0.66
Indian River Estates (Retirement/Life care)
350
11
0.59
306
12
0.61
Disney Vero Beach (Resort Hotel)
281
12
0.47
370
10
0.74
Grand Harbor Managemnt (Developer)
253
13
0.43
290
13
0.58
CVS Warehouse/Distribution (Distribution)
276
14
0.47
0.00
Sun Ag, Inc. (Agricutural)
225
15
0.38
0.00
Medical Data Systems (Collection Agency)
175
16
0.30
0.00
Captain Hirams (Restaurant/Resort)
174
17
0.29
0.00
City of Sebastian (Government)
171
18
0.29
0.00
Gracewood Fruit Packing (Agricultural)
700
4
1.39
Hale Indian River Groves (Agricutural)
500
8
1.00
Winn Dixie (Food stores)
440
9
0.88
11,495
19.38 %
11,549
19.74
Total Average County Employees
59,304
50,205
Source: Indian River County Community Development Report.
Note: Principal employers information available for Indian River County Only.
fENI
CITY OF SEBASTIAN, FLORIDA
Full -Time Equivalent City Government Employees By Function
For the Last Ten Fiscal Years
Full-time Equivalent Employees as of June 30
Function ' 2013 2012 2011 2010 2009
2008
General government
City council 2.5 2.5 2.5 2.5
2.5
2.5
City manager 2.0 2.0 2.0 2.5
2.5
2.5
City clerk 3.0 3.0 3.0 3.0
3.0
3.0
City attorney - - - - 4
2.0
2.0
Administrative 5.0 5.0 5.0 5.0
-
-
Finance - - - - z
5.0
5.0
Management information 3.0 3.0 4.0 3.0
3.0
3.0
Human resources - - - - z
2.0
3.0
Facilities maintenance 4.0 3.0 2.0 2.0
2.0
2.0
Planning 8t Zoning3.0 3.0 4.0 5.0
5.0
5.0
Public safety
Police 55.5 55.0 58.0 58.0
59.0
58.0
Building 5.0 4.0 5.0 5.0
5.0
6.0
Code enforcement 3.0 3.0 3.0 4 2.5
2.5
2.5
Transportation
Roads and drainage 10.0 10.0 12.0 12.0 3
10.0
10.0
Central garage 3.5 3.5 2.5 3.5
3.5
2.5
Airport 2.0 3.0 3.0 3.0
3.0
3.0
Physical environment
Cemetery 2.0 1.0 1.0 2.0
2.0
2.0
Engineering - - - - 3
7.0
7.0
Stormwater utility 9.0 9.0 12.0 12.0
11.0
13.0
Culture and recreation
Parks and recreation 20.0 20.0 21.0 23.0
23.5
23.5
Golf course 10.0 10.0 10.5 10.5
9.0
9.0
Total 142.5 140.0 150.5 154.5
162.5
164.5
Source: City of Sebastian, Florida 2004-2014 Annual Budgets
Method: Using 1.0 for each full-time employee and 0.5 for each part-time and seasonal employee.
' Code enforcement division was transferred out of the Police department in FY 2006 and transferred
back in
FY 2009.
Z Finance and Human Resources were combined to form Administrative starting FY 2010.
3 Engineering department was dismantled, intern program was ceased. 2 employees were transferred to Roads and
Drainage and 1 employee was transferred to Stormwater.
4 City attorney position was contracted out and assistant went full time to code enforcement.
5 Growth Management was renamed to Planning Zoning to better describe their function.
IEW
Table XVII - Unaudited
Full-time Equivalent Employees as of June 30
2007 2006 2005 2004
2.5
2.5
2.5
2.5
2.0
2.0
5.0
4.0
4.0
4.5
4.0
4.0
2.0
2.0
2.0
1.0
5.0
6.0
5.0
5.0
3.0
3.0
2.0
2.0
3.0
3.0
3.0
3.0
2.0
2.0
2.0
-
5.0
4.0
4.0
4.0
57.0
58.0 '
59.0
56.5
11.0
11.0
9.0
8.0
3.0
3.0 '
-
-
11.5
12.5
12.5
14.5
3.5
3.5
3.0
3.0
3.0
3.5
3.5
2.5
2.0
2.0
2.0
2.0
9.0
8.0
8.0
8.0
13.0
13.0
13.0
12.0
23.5
24.5
23.5
17.5
12.5
12.5
12.5
13.5
177.5
180.5
175.5
163.0
143
CITY OF SEBASTIAN, FLORIDA
Operating Indicators By Function
For the Last Ten Fiscal Years
Fiscal Year
Function
2013 2012
2011
2010
General government
Number of annexations approved
2
1
Acres of annexed property
4.00
-
-
5.90
Purchase orders issued
233
201
228
216
Public Safety
Police
Physical arrests
440
441
500
487
Traffic violations
4,491
4,319
5,941
4,083
Parking violations
80
167
242
87
Building
Construction permits issued '
170
66
51
36
Estimated value of construction (in millions)
$ 35.9 $
14.7 $
10.2 $
6.6
Transportation
Road maintenance (man hours)
300
500
700
1,264
Asphalt for road maintenance (tons)
30
50
50
103
Concrete for road maintenance (yards) `
-
-
-
-
Physical environment
Cemetery
Cemetery internments
65
65
54
66
Grave deeds sold
38
38
34
33
Stormwater
Swales maintained (miles)
280
280
280
280
Ditches maintained (miles)
50
50
50
50
Road crossings maintained
50
50
40
40
Culture and recreation
Program participants
8,113
9,713
8,649
11,701
Number of discount cards
710
786
735
844
Number of golf course memberships
86
88
94
96
Average daily golf revenue
$ 3,569 $
3,822 $
3,787 $
3,673
Sources: City of Sebastian Police Department, Growth Management, Public Works,
Golf Course and Building Department.
' New commercial and residential only.
Z All road maintenance utilized asphalt, no concrete
curbing was installed.
1011
Table XVIII - Unaudited
Fiscal Year
2009 2008 2007 2006 2005 2004
3
1
1
1
6
26.00
-
3.87
3.30
25.55
484.00
288
254
284
293
369
408
543
662
697
744
786
653
4,849
4,418
7,221
6,291
5,457
5,431
50
208
289
880
303
3,801
23
55
104
506
774
577
$ 5.1 $
13.3 $
22.5 $
88.3 $
114.7 $
112.3
600
538
888
512
100
878
328
358
210
127
125
88
-
-
-
300
-
283
74
68
69
76
79
86
39
46
49
56
56
69
280
280
280
280
280
280
50
50
50
50
50
50
30
30
30
30
30
30
13,465
12,910
14,177
8,004
5,504
7,498
879
950
1,004
2,690
1,000
993
95
97
108
119
85
116
$ 4,000 $
3,988 $
4,661 $
4,441 $
3,844 $
4,551
145
CITY OF SEBASTIAN, FLORIDA
Capital Asset Statistics By Function
For the Last Ten Fiscal Years
Fiscal Year
Function
2013
2012
2011
2010
General Government
Square footage occupied
21,500
21,500
21,500
21,500
Departmental vehicles
6
1
3
3
Public safety
Police stations
1
1
1
1
Police department Square footage
25,600
25,600
25,600
25,600
Building department Square footage
2,500
2,500
2,500
2,500
Police vehicles
61
66
67
63
Building inspector vehicles
3
3
3
3
Transportation
Streets (miles)
156
156
156
156
Streetlights '
1,080
1,228
1,236
1,230
Airport
1
1
1
1
Public service vehicles
17
17
19
22
Physical environment
Public service vehicles
10
9
9
15
Culture and recreation
Parks
18
18
18
18
Recreation centers
2
2
2
2
Park acreage
315.04
315.01
315.01
315.01
Recreation center square footage
4,859
4,859
4,859
4,859
Park maintenance vehicles
12
13
14
13
Golf course
1
1
1
1
Sources: City of Sebastian Administrative Services Department and Park and Recreation Division
' This number represents actual unmetered street lights in the City (source: Florida Power it Light - January billing).
146
Table XIX - Unaudited
Fiscal Year
2009
2008
2007
2006
2005
2004
21,500
21,500
21,500
21,500
21,500
5,516
3
3
3
3
5
2
1
1
1
1
1
1
25,600
25,600
25,600
25,600
25,600
8,700
2,500
2,500
2,500
2,500
2,500
1,716
63
62
57
53
52
47
4
4
5
6
5
4
156
156
156
156
156
156
1,240
1,229
1,309
3,808
3,555
3,543
1
1
1
1
1
1
18
23
21
19
14
24
7
11
10
12
13
6
18
15
14
14
12
12
2
2
2
2
2
2
233.79
233.79
229.37
229.37
223.37
223.37
4,859
4,859
4,859
4,859
4,859
4,859
13
13
12
11
10
8
1
1
1
1
1
1
IEW
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148