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_GaFINANCE DEPARTMENT 2001 March 3 I, 2015 Mayor & Commission Re: City of South Miami Policies, Procedures and Internal Controls Concerning Securities Disclosures Comprehensive Annual Financial Report (CAFR) CAFR Compliance Certificate Fiscal Year 20 14 Dear Mayor & Commission : Please find enclosed the City's Comprehensive Annual Financial Report (CAFR) for Fiscal Year 2014. Pursuant to the City's Policies , Procedures and Internal Controls Concerning Securities Disclosures, we hereby certify that we have reviewed the CAFR and do not believe the CAFR contains any untrue statement of a material fact or omits to state a fact necessary to make the statements contained in the CAFR not misleading. If you should have any questions or need any additional information, please do not hesitate to contact Alfredo Riverol at 305-663-6343 or via email at ariverol@southmiamifl.gov. Name:"-=ATI~I6i~i~v~er~o~I,~C~PA"i!~- Title: Chief Financial Officer Name . Title : N;yn~Q FrI exander Tille ~ City Manager CCOOMMPPRREEHHEENNSSIIVVEE AANNNNUUAALL FFIINNAANNCCIIAALL RREEPPOORRTT OOFF TTHHEE CCIITTYY OOFF SSOOUUTTHH MMIIAAMMII,, FFLLOORRIIDDAA FFOORR TTHHEE YYEEAARR EENNDDEEDD SSEEPPTTEEMMBBEERR 3300,, 22001144 CITY OF SOUTH MIAMI CITY OF SOUTH MIAMI, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT September 30, 2014 TABLE OF CONTENTS PAGE INTRODUCTORY SECTION Letter of Transmittal i-x Organizational Chart xi List of Principal Officials xii-xiii Certificate of Achievement in Financial Reporting xiv FINANCIAL SECTION Report of Independent Auditor 1-2 Management’s Discussion and Analysis (Required Supplementary Information) 3-13 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position 14 Statement of Activities 15 Fund Financial Statements: Balance Sheet - Governmental Funds 16 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 17 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 18 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 19 Statement of Fiduciary Net Position - Fiduciary Funds 20 Statement of Changes in Fiduciary Net Position - Fiduciary Funds 21 Notes to Financial Statements 22-49 REQUIRED SUPPLEMENTARY INFORMATION Budgetary Comparison Schedules: General Fund 50-51 Emergency Reserve Fund 52 Grants Fund 53 Notes to Budgetary Comparison Schedules 54 Retirement System: Schedule of Funding Progress - General Employees Pension Trust Fund 55 Schedule of Funding Progress - Police Officers Pension Trust Fund 56 Schedule of Funding Progress - Pay-As-You-Go Approach - Other Post-Employment Health Care Benefits 57 CITY OF SOUTH MIAMI, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT September 30, 2014 TABLE OF CONTENTS (continued) PAGE OTHER FINANCIAL INFORMATION Combining Individual Fund Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds 58 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds 59 Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Nonmajor Governmental Funds 60-69 Combining Statement of Net Position - Fiduciary Funds 70 Combining Statement of Changes in Net Position - Fiduciary Funds 71 STATISTICAL SECTION Table 1 - Net Position by Component 72 Table 2 - Changes in Net Position 73 Table 3 - Fund Balances of Governmental Funds 74 Table 4 - Changes in Fund Balances of Governmental Funds 75 Table 5 - Assessed Value and Estimated Actual Value of Taxable Property 76 Table 6 - Property Tax Rates Direct and Overlapping Governments 77 Table 7 - Principal Property Taxpayers 78 Table 8 - Property Tax Levies and Collections 79 Table 9 - Ratios of Outstanding Debt by Type 80 Table 10 - Ratios of General Bonded Debt Outstanding 81 Table 11 - Direct and Overlapping Governmental Activities Debt 82 Table 12 - Legal Debt Margin Information 83 Table 13 - Demographic and Economic Statistics 84 Table 14 - Principal Employers- Miami-Dade County, Florida 85 Table 15 – Full-Time Equivalent City Government Employees by Function 86 Table 16 - Operating Indicators by Function 87 Table 17 - Capital Asset Statistics by Function/Program 88 COMPLIANCE SECTION Report of Independent Auditor 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 89-90 Report of Independent Auditor on Compliance for Each Major Federal Program and On Internal Control Over Compliance Required by OMB Circular A-133 91-92 Schedule of Expenditures of Federal Awards 93 Notes to the Schedule of Expenditures of Federal Awards 94 Schedule of Findings and Questioned Costs 95 Management Letter in Accordance with the Rules of the Auditor General of the State of Florida 96-97 Report of Independent Accountant on Compliance with Local Government Investment Policies 98 INTRODUCTORY SECTION i March 25, 2015 Honorable Mayor and Members of the City Commission City of South Miami, Florida Ladies and Gentlemen: The Comprehensive Annual Financial Report of the City of South Miami, for the fiscal year ended September 30, 2014, is hereby submitted for your review. Responsibility for the accuracy of the data, the completeness, and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and reported in a manner designed to present fairly the financial position and results of operations for all funds under the direct operating control of the City. All necessary disclosures were included to enable the reader to gain maximum understanding of the City's financial activities for the year. Accordingly, this report consists of three sections; Introductory, Financial, and Statistical. The contents of the report is in compliance with Government Accounting Standards Board (GASB) pronouncements, including Statement 34, et al., that requires the preparation of government-wide financial statements on a full accrual basis of accounting for all funds, as well as Management's Discussion and Analysis (MD&A). The MD&A is found immediately following the report of the independent certified public accountants. CITY OF SOUTH MIAMI 6130 Sunset Drive South Miami, FL 33143 Tel. (305) 663-6343 Fax (305) 663-6348 ii THE REPORTING ENTITY AND ITS SERVICES The City of South Miami was incorporated in 1927 and is a political subdivision of the State of Florida. The City is a full service city providing its citizens with a full complement of municipal services, specifically, Public Safety, General Government, Parks, Culture and Recreation, Solid Waste and Public Works. The accompanying financial statements present the government and its component units, entities for which the government is considered financially accountable. Blended component units, although legally separate entities are, in substance, part of the government's operations. The South Miami Community Redevelopment Agency is included as a blended component unit. There are no discretely presented component units. ECONOMIC OUTLOOK The City of South Miami is primarily a residential community composed of approximately 13,778 residents, as per the Bureau of Economic & Business Research at the University of Florida. The majority of persons employed within the City are in professional/specialty, administrative support and executive/administrative/management positions. City residents are primarily employed in jobs throughout Miami- Dade County. The City's downtown business district is composed of approximately 45 acres located on the west side of Red Road both north and south of Sunset Drive featuring specialty shops, restaurants and a shopping mall with movie theaters and a bowling alley. Also located within the City are two major medical institutions, South Miami Hospital and Larkin Hospital, which are considered two of the finest medical facilities in the metropolitan area. In addition to the Miami-Dade County bus System serving the City, County’s Metro-Rail system also provides mass transit for the City with a station located off Sunset Drive and U.S. 1. The Miami International Airport is within 30 minutes from downtown South Miami. The City is located in the center of Metropolitan Miami-Dade County and abutting several other municipalities in the area. Numerous major attractions are situated in close proximity to the City. As with many businesses in the County, local businesses benefit from a significant tourist trade. The City of South Miami owns a multi- use public parking garage facility, which was completed in November 2007. A major mixed-use development, Red Road Commons, which is adjacent to the South Miami Metro-Rail Station, consists of over 400 residential units and affordable housing units. iii MAJOR INITIATIVES The Community Redevelopment Agency (CRA), a blended component unit of the City, was created in 1998 to bring economic revitalization to the depressed area of the City through tax increment financing. The agency obtains its funds through annual contributions from Miami-Dade County and the City from the tax revenue generated from increase in property assessment of the designated area. The agency ended its fifth fiscal year of operations in September 2005. On May 3, 2005, the Miami-Dade County Commission approved Resolution R- 466-05, extending the life of the CRA for fifteen (15) years beyond the June 1, 2005 sunset provision of the CRA's Interlocal Agreement with the County. However, the renewal included a sunset review within two (2) years of this extension. As part of the fifteen-year extension, the Miami-Dade County Commission mandated that the CRA must obtain long-term financing that is supported by tax increment revenues to fund the second phase of the Plan within the two (2) year period ended June 1, 2007. In November 2006, the City, through its Community Redevelopment Agency, issued $2,730,000 of Taxable Redevelopment Revenue Bonds, Series 2006 to acquire various properties located within the boundaries of the South Miami Community Redevelopment Area. The City remains committed to the current level of services with a high quality level of delivery. There are many priorities that need to be addressed, including a revision of our very outdated land development code, the proper maintenance of our parks system, and the further consolidation and maximizing of efficiencies from the organization of our government structure that need to be addressed in the near future. Should revenues grow, we will be able to evaluate new priorities for the City and with the authorization of the Commission we will begin to increase the effectiveness and offered services of the City. The South Miami Intermodal Transportation Plan is part of a continuing effort to enhance the transportation system and mobility choices for the residents and visitors to the City of South Miami and aims to establish a network of bicycle lanes, sidewalks, trails, roadway improvements, neighborhood and greenways, throughout the City, connecting residential areas with downtown shopping and dining, transit facilities (Metrorail and BRT) and M-Path. A main priority of this plan is to provide a safer, more efficient environment for pedestrians, cyclists, and all modal users by promoting neighborhood greenways on residential streets with low volumes of auto traffic and reduce speed, the use of traffic calming devices such as trees, speed tables, pavement markings and signage. With the recently commissioned approved plan, the City shall commence with the design and construction of recommended improvements. The FY 2015 Budget, Capital Improvement Program 5-Year Plan, includes a line item for a citywide directional street signs & posts replacement program. The project is funded by the Peoples Transportation Plan (PTP) and is funded this year at $150,000. The scope includes the manufacturing of new signs, and the removal and replacement of existing traffic signs. It is recommended the traffic sign replacement program be implemented in phases and funds be allocated in subsequent budget years. In FY 2014, the City funded a branding plan which established a new logo and new color scheme for the City. The street signs and many other features of the City will incorporate the new look for the City as we prepare for the next great chapters in the life of South Miami. The City is committed to completing multiple traffic calming projects throughout the City. The specific communities on which the City is focusing in FY 2015 are West Pinecrest Villas, Bird Estates, Mango Terrace, and Manor Lane. The City will continue working with Miami-Dade County in the continued improvement to our roads, drainage, and traffic calming. The City is committed to completing multiple traffic calming projects throughout the City originally funded in last year’s budget which were not actually initiated until FY 2014 and include, West Pinecrest Villas, Bird Estates, Mango Terrace, and Manor Lane. The City will continue working with Miami-Dade County in the continued improvement to our road, drainage, and traffic calming. iv To continue maintaining a safe and efficient fleet, in fiscal year 2015, the City is budgeted to purchase seven new police vehicles. The upgrades of the City’s fleet are required to continue providing expected levels of service to the residents of the City. The older police vehicles that are being replaced will take the place of those vehicles in the City fleet that are determined to have exceeded their useful life and may have safety or operational problems; the vehicles will be auctioned for sale. Currently and in the future, the City will purchase extended warrantees for our vehicles and surplus the vehicles at the end of the warranty program in order to reduce maintenance costs to the City. MAJOR INDUSTRIES AND/OR SERVICE CENTERS The City’s economy is greatly influenced by the economic condition of the entire Miami-Dade County. The major businesses in the City are service-oriented with the health care industry professional services, and retail shop operators being the main employers. Below is the breakdown of businesses within the City by category. INDUSTRY SECTOR ESTIMATE Agriculture, forestry, fishing and hunting, and mining 0 Construction 294 Manufacturing 308 Wholesale trade 256 Retail trade 310 Transportation and warehousing, and utilities 357 Information 186 Finance and insurance, and real estate and rental and leasing 363 Prof, scientific, management and admin., and waste management services 896 Educational services, and health care and social assistance 1,418 Arts, entertainment, and recreation, and accommodation and food services 602 Other services, except public administration 285 Public administration 335 TOTAL 5,610 Source: U.S. Census Bureau 2010 Industry Code Summary v ACCOUNTING SYSTEM, INTERNAL AND BUDGETARY CONTROL In the design and direction of the City's accounting system, the City follows U.S. generally accepted accounting principles (GAAP) for state and local governments as set forth in the aforementioned statements on governmental accounting and financial reporting. The City’s accounting records follow the modified accrual basis of reporting revenues and expenditures for all governmental funds, i.e., General Fund and Special Revenue Funds. The Pension Trust Funds are accounted for on the accrual basis. Further explanation of the City's accounting policies is contained in the notes to the financial statements. The City's Finance Department is responsible for maintaining a comprehensive internal framework of accounting controls. The objectives of this system are to protect the City’s assets from loss, theft and/or misuse, and to compile sufficient reliable information for the preparation of the City’s financial statements in accordance with GAAP. Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls was designed to provide reasonable, rather than absolute, assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The firm of Cherry Bekaert LLP, licensed certified public accountants, audited the City’s financial statements. The goal of the independent audit was to provide reasonable assurance that the basic financial statements of the City of South Miami, for the fiscal year ended September 30, 2014, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amount and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City’s financial statements for the fiscal year ended September 30, 2014, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. As part of their audit, Cherry Bekaert LLP gained an understanding and performed tests of controls on the City's comprehensive framework of controls as required by U.S. generally accepted auditing standards. Comments and recommendations resulting from the assessment of the controls, if any, will be evaluated by management. Such recommendations will be implemented to the extent that the additional control objectives are cost beneficial to the City. Budgetary control is maintained in a manner to ensure compliance with the requirements and restraints of the State of Florida, Miami-Dade County, and the City of South Miami Charter, through a system of monthly financial reports reflecting expenditures and encumbrances against appropriations. The annual budget provides details of the approved appropriation by specific purpose within each object of expense. Encumbrances remaining open at the close of the fiscal year are reported as designated non-reserved of fund balance. CASH MANAGEMENT The City aggressively pursues a program of monitored cash management to achieve maximum return on all available funds. Non-Pension idle cash balances are held overnight in interest bearing accounts and funds available for longer-term investment are placed in money markets and certificates of deposit at competitive interest rates. Pension fund investments are maintained by an investment manager under the guidance of the pension board. All investment decisions are within the legal bounds established by Florida Statutes, Ordinances, and Resolutions of the City Commission. vi DEBT ADMINISTRATION On May 4, 2010, the City purchased nine police vehicles, of which eight were financed through the issuance of a note payable to a local bank totaling $228,060. The note calls for annual payments of principal and interest of $31,461 at an annual interest rate of 3.08%. The note matures on July 7, 2015. On March 1, 2011, the City Commission passed Ordinance 12-11-2085 which authorized the purchase of six police vehicles financed through the issuance of a note payable to SunTrust totaling $158,257. The note calls for annual payments of principal and interest of $33,741.48 at an annual interest rate of 2.44%. The note matures on March 10, 2016. SUNGARD ONESOLUTION - CITY’S FINANCE & COMMUNITY SOFTWARE The City commission approved Resolution 228-10-13262 for the upgrade of the City’s financial and community software, in an effort to continue improving and keeping in line with the most up-to-date Enterprise Resource Planning software. The City’s new version of the finance and community software is financed, interest free, by the City’s vendor for a five-year period for a total amount of $175,000. The annual principle payments are calculated at $35,000 and will be paid in full by FY 2015. MULTI-SPACE DIGITAL PARKING METERS The City of South Miami removed the dated traditional single head parking meters within certain areas in favor of the modern technology multi-space parking stations which are being upgraded to Wi-Fi connectivity. The new multi-space parking meters were approved for financing in January of 2011, for a five-year period by SunTrust at an interest rate of 2.06%. The total amount of the loan was $417,896 and the annual principal and interest payment equals $88,678.32, which terminates on January 7, 2016. STORMWATER TRUST FUND The City of South Miami entered into an agreement with the Federal Emergency Management Agency (FEMA) to fund a Ludlam Glades canal dredging project pursuant to Ordinance number 10-02-1778 for a total cost of $3,271,177. Additionally pursuant to Ordinance 17-06-1885 the City entered into an interlocal agreement with Miami-Dade County for the City’s share of $270,363 over a ten-year period. The total annual principal amount is $27,036 plus interest. The debt is scheduled to be retired in FY 2016. COMMUNITY REDEVELOPMENT AGENCY In November 2006, the City through its Community Redevelopment Agency (“CRA”) issued $2,730,000 of Taxable Redevelopment Revenue Bonds, Series 2006 for acquiring various properties located within the boundaries of the South Miami redevelopment area. The revenue bonds are secured by CRA Tax Increment Financing revenues from the County and the City. The CRA contributed in FY 2011 an additional principal payment of $851,648.24 in an effort to reduce the amount of interest paid through the duration of the loan and pay-off the debt in advance of its maturity. The bonds carry an interest rate of 5.99%. Principal and interest payments are due quarterly until approximately November 1, 2015, the revised maturity date of the bonds. vii FLORIDA MUNICIPAL LOAN COUNCIL (FMLC) The City has several loans outstanding with the Florida Municipal Loan Council (FMLC). The FMLC, as a subsidiary of Florida League of Cities, administers the Florida Municipal Loan Program. Small and medium-sized cities in the state obtain loans from the FMLC through bonds, which are insured by MBIA Insurance Corporation. SOUTH MIAMI COMMUNITY CENTER One of the FMLC loans is for $2.2 million, which was obtained in 2001, with $1.5 million used as matching funds for the safe neighborhood grant used to construct the new South Miami Community Center, $400,000 was provided by the City to the CRA as a loan for acquisition of the Mobley Warehouse building located within the CRA district. The remaining $300,000 was utilized for various traffic calming projects around the City. The loan bears interest at variable rates ranging from 3.25% to 5.25%. The City pledged the South Miami Hospital’s Payments in Lieu of Taxes (PILOT) annual payment of $150,000 to repay the loan. SOUTH MIAMI PARKING GARAGE Another loan was obtained in 2002 for $6.5 million used for joint venture construction of a mixed-use parking garage-retail facility. The loan interest ranges from 3.25% to 5.50% as provided in the amortization schedule. At the time the loan was obtained, the City pledged to use the revenues from the parking garage operation and funds from the partner in the joint venture to repay the loan. On August 16, 2011, the City contributed $1,725,000 to reduce a portion of the outstanding debt, hence reducing the required annual principal and interest contribution amount. On December 2006, the City borrowed $5.6 million to finance the construction and improvements of a city- owned parking garage for public parking. The loan interest varies from 4.2% to 4.5% as provided in the amortization schedule. The investment income from the note receivable and loan proceeds not expended, future garage revenues, and non-ad valorem revenues are used to repay the loan. On August 16, 2011, the City contributed $3,775,000 to reduce a portion of the outstanding debt, hence reducing the required annual principal and interest contribution amount. SUNTRUST On August 16, 2011, the City of South Miami agreed to a loan with SunTrust Bank which in furtherance of the Settlement Agreement with the IRS, the City issued as a Taxable Revenue Note, Series 2011. This note was made to provide funds to finance, on a taxable basis, (i) the prepayment of the FMLC 2002A and 2006 loans, (ii) the payment of the settlement amount owed to the IRS pursuant to the Settlement Agreement and costs related thereto, and (iii) the payment of costs of issuance of the Series 2011 Note for a total $7.57 million. The new2011 SunTrust Loan was issued at a fixed interest rate of 4.55% and matures on October 1, 2026. viii RETIREMENT BENEFITS The City of South Miami sponsors two defined benefit pension plans, the General Employees' Pension Fund and the Police Officers Retirement Trust Fund. These two pension plans are administered through one independent Pension Board. The Pension Board hires an outside pension plan administrator to administer the plans. Each year, an independent actuary, engaged by the Board calculates the amount of annual contribution that the City of South Miami must make to each pension plan to ensure that the plans are actuarially sound. As a matter of policy, the City of South Miami fully funds each year's annual required contribution to the pension plans as determined by the actuary. Regular full-time employees of the City hired on or after October 1, 1995 but before, October 1, 2011 must become participants upon completion of six months of service. Police officers become eligible to enter the plan as of the date of employment. All regular full-time employees hired after October 1, 2011 are no longer eligible to enter the General Employees' Pension Fund. These employees must elect a retirement contribution percentage of their salary, which is matched by the City up-to 7%, to the 401a / 457 combination deferred compensation plan. As part of the FY 11 pension reform, the City provided members of the previous pension system an opt-out window, providing the employees with an opportunity to enter the newly defined 401a / 457-retirement pan. The City also provides a defined contribution Section 457 deferred compensation plan for all its employees. The financial activities of the Plans are reported annually as part of the overall City Comprehensive Annual Financial Report. ix AWARDS The Governmental Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 2013. 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 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 report continues to conform to the Certificate of Achievement Program requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to City of South Miami, Florida for its annual budget for the fiscal year beginning October 1, 2013. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. The Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to City of South Miami, Florida for its Popular Annual Financial Report for the fiscal year ended September 30, 2013. The Award for Outstanding Achievement in Popular Annual financial Reporting is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular reports. In order to receive an Award for Outstanding Achievement in Popular Annual financial reporting, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creativity, presentation, understandability, and reader appeal. The Award for Outstanding Achievement in Popular Annual Reporting is valid for a period of one year only. We believe our current report continues to conform to the Popular Annual financial Reporting requirements, and we are submitting it to GFOA. xi CITY OF SOUTH MIAMI ORGANIZATIONAL CHART xii CITY OF SOUTH MIAMI COMMISSION – MANAGER FORM OF GOVERNMENT LIST OF PRINCIPAL OFFICIALS ELECTED OFFICIALS CHARTERED OFFICIALS City Manager Steven Alexander City Clerk Maria Menendez City Attorney Thomas Pepe, Esq. Philip K. Stoddard, Ph.D. Mayor Walter A. Harris Vice Mayor Group IV Gabriel Edmond Commissioner Group I Bob Welsh Commissioner Group III Josh Liebman Commissioner Group II xiii MANAGEMENT TEAM SHARI KAMALI Assistant City Manager ALFREDO RIVEROL, CPA Cr.FA CGFM CGMA Chief Financial Officer RENE LANDA Police Chief CORRADINO GROUP Interim Planning and Zoning Director KELLY BARKET, JR. Public Works Director LATASHA NICKLE, ESQ. Human Resources Director QUENTIN POUGH Parks and Recreation Director VICTOR CITARELLA Building Director CERTIFIED PUBLIC ACCOUNTANTS Cherry Bekaert LLP xiv FINANCIAL SECTION 1 Report of Independent Auditor  To the Honorable Mayor, Members of the City Commission, and City Manager City of South Miami, Florida Report on Financial Statements  We have audited the accompanying financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the City of South Miami, Florida (the “City”), as of and for the year ended September 30, 2014, 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. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Police Officers Retirement Trust Fund - Section 185 Plan, which represent 3%, 2%, and 3%, respectively, of the assets, net position and total additions of the Fiduciary Funds. Those statements were audited by another auditor whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Police Officers Retirement Trust Fund - Section 185 Plan, is based solely on the report of the other auditor. 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 of 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 auditor’s 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 financial statement presentation of the financial statements. We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, based on our audit and the report of the other auditor, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund and the aggregate remaining fund information of the City as of September 30, 2014, and the respective changes in financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America. Emphasis of Matter  Change in Accounting Principle  As discussed in Note 2 to the financial statements, effective October 1, 2013, the Police Officers Retirement Trust Fund – Section 185 Plan adopted new accounting guidance, GASB Statement No. 67 Financial Reporting for Pension Plans. As described in Note 2 to the financial statements, effective October 1, 2013, the City has restated the beginning balance of net position due to the implementation of GASB 67. Our opinions are not modified with respect to this matter   2 Other Matters  Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information and the pension and other post-employment health care benefits schedules, 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 and the other auditor 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 regarding 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. Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and schedules, and statistical section, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audit of States, Local Governments, and Non-Profit Organizations, and is also not a required part of the financial statements. The combining and individual nonmajor fund financial statements and schedules and the schedule of expenditures of federal awards 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. Such 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 by us and the other auditor. In our opinion, based on our audit, the procedures performed as described above, and the report of the other auditor, the combining and individual nonmajor fund financial statements and schedules and the schedule of expenditures of federal awards are fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards  In accordance with Government Auditing Standards, we have also issued our report dated March 25, 2015, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, 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. Orlando, Florida March 25, 2015 CITY OF SOUTH MIAMI, FLORIDA  MANAGEMENT’S DISCUSSION AND ANALYSIS    SEPTEMBER 30, 2014      3 The management of the City of South Miami (the “City”) included this section in the Comprehensive Annual Financial Report (CAFR) in accordance with the Governmental Accounting Standards Board (GASB) Statement Number 34, et al. It is intended to provide readers of this report the narrative overview and analysis of the financial activities of the City for fiscal year ended September 30, 2014. Readers are encouraged to consider the information presented here in conjunction with additional information that is furnished in the letter of transmittal, the City's financial statements, and the other required supplemental information. This 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 (its ability to address the next and subsequent year challenges), (d) identify any material deviations from the financial plan (the approved budget), and (e) identify individual fund issues or concerns. The information contained within this section should be considered only as a part of a greater whole. FINANCIAL HIGHLIGHTS    The following are the highlights of financial activity for the fiscal year ending September 30, 2014:  The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $41,976,774 (net position). Of this amount, $9,707,714 is unrestricted.  The City's $21,640,045 in revenue exceeded the $18,693,589 in expenses for governmental activities, providing a $2,946,456 increase in net position.  At the end of the current year, fund balance for the General Fund was $10,782,848, or 64% of total general fund operating revenues. Of this amount $5,915,919 is reserved for prepaid costs, encumbrances, public safety, note receivable and contingencies.  The current year's unassigned fund balance for the General Fund is $4,866,929, or 29% of total general fund operating revenues.  The General Fund's fund balance increased by $1,446,183 for the year ended September 30, 2014.  The City's total debt excluding compensated absences, and before current year payment reductions, decreased by $1,077,903. CITY OF SOUTH MIAMI, FLORIDA  MANAGEMENT’S DISCUSSION AND ANALYSIS    SEPTEMBER 30, 2014      4 OVERVIEW OF THE FINANCIAL STATEMENTS    This annual report consists of four parts: management's discussion and analysis (this section), the basic financial statements, required supplementary information and an additional section that presents combining statements for non-major governmental funds, and fiduciary funds. The basic financial statements include two kinds of statements that present different views of the City:  The first two statements are government-wide financial statements that provide both long-term and short-term information about the City's overall financial status  The remaining statements are fund financial statements that focus on individual parts of the City government, reporting the City's operations in more detail than the government-wide statements.  The governmental funds statements show how general government services such as public safety were financed in the short term as well as what remains for future spending.  Fiduciary funds statements provide information about the financial relationships in which the City acts solely as a trustee or agent for the benefit of those parties outside of the government. The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a section of required supplementary information which further explains and supports this information. In addition to these required elements, we include a section with combining statements that provides details about our non-major governmental funds, each of which is added together and presented in single columns in the basic financial statements. Government-wide financial statements: The government-wide financial statements are designed to provide readers with a broad overview of the City of South Miami'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 and liabilities, with the difference between the two 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 City'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), and 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 government activities of the City of South Miami include police services, public works, culture and recreation, code compliance, planning and zoning, economic development and general administration services. There are no business-type activities. Additionally, the City has four separate single-employer defined benefit pension plans, 401A plans for the City Manager, Chief of Police, senior level staff, and all new general employees and a voluntary Section 457 defined contribution plan for all interested employees. The pension plans are reported as Fiduciary Funds in the fund financial statements of this report, but are not included in the government-wide statements. The government-wide financial statements can be found on pages 14 and 15 of this report. CITY OF SOUTH MIAMI, FLORIDA  MANAGEMENT’S DISCUSSION AND ANALYSIS    SEPTEMBER 30, 2014      5 Fund financial statements: A fund is a grouping of related accounts that is used to maintain control over resources that were 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 are divided into two categories: governmental 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 several individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. Budgetary comparison statement was provided for the General Fund to demonstrate compliance with the budget. The basic governmental funds financial statements can be found on pages 16 to 19 of this report. 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 statement 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. The basic fiduciary fund financial statements can be found on pages 20 to 21 of this report. Individual fund data for the Fiduciary Funds is provided in the form of combining statements elsewhere in this report. 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. The notes to the financial statements can be found on pages 22 to 49 of this report. Other information: In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City's progress in funding its obligation to provide pension benefits to its employees, and budgetary comparison schedules for the General Fund. CITY OF SOUTH MIAMI, FLORIDA  MANAGEMENT’S DISCUSSION AND ANALYSIS    SEPTEMBER 30, 2014      6 The combining statements referred to earlier in connection with non-major governmental funds is presented immediately following the required supplementary information. Combining and individual fund statements can be found beginning on page 58 of this report. Our analysis of the financial statements of the City begins below. The Statement of Net Position and the Statement of Activities report information about the City's activities will help answer questions about the position of the City. GOVERNMENT‐WIDE FINANCIAL ANALYSIS  Statement of Net Position: As noted earlier, net position may serve over time as a useful indicator of a government's financial position. There are six basic transactions that will affect the comparability of the Statement of Net Position summary presentation as reflected below: 1) Net results of activities will impact (increase/decrease) current assets and unrestricted net position. 2) Borrowing for capital will increase current assets and long-term debt. 3) Spending borrowed proceeds on new capital will reduce current assets and increase capital assets. There is a second impact, an increase in invested in capital assets and an increase in related net debt which will not change the net investment in capital assets. 4) Spending of non-borrowed current assets on new capital will reduce current assets and increase capital assets and increase net investment in capital assets. 5) Principal payment on debt will reduce current assets and reduce long-term debt and reduce unrestricted net position and increase net investment in capital assets. 6) Reduction of capital assets through depreciation will reduce capital assets and net investment in capital asset. The City's net position was $41,976,774 in fiscal year 2014 (see Table 1). This amount came solely from governmental activities because the City has no business-type activities. Restricted net position and net investment in capital assets amounted to 77% of total net position. The largest portion of the net position (63%) is net investment in capital assets (land, buildings, streets, sidewalks, and equipment). 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. The respective fraction of net position (14%) is restricted for debt service, public safety or capital projects. The remaining balance of unrestricted net position ($9,707,714) may be used to meet government's ongoing obligations to citizens and creditors. CITY OF SOUTH MIAMI, FLORIDA  MANAGEMENT’S DISCUSSION AND ANALYSIS    SEPTEMBER 30, 2014      7 Table 1 City of South Miami Net Position 20142013 Current and other assets31,349,584$ 30,763,485$ Capital assets (net)39,726,588 38,802,029 Total Assets 71,076,172 69,565,514 Deferred outflow of resources639,528 688,723 Current and other liabilities4,562,188 4,419,104 Long-term liabilities13,546,414 14,797,488 Total Liabilities 18,108,602 19,216,592 Deferred inflow of resources11,630,324 12,007,327 Net position: Net investment in capital assets26,306,008 24,352,741 Restricted5,963,052 5,812,228 Unrestricted9,707,714 8,865,349 Total Net Position 41,976,774$ 39,030,318$ Governmental Activities At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position. The restricted net position decreased in 2014 by $150,824, and the unrestricted governmental activities net position increased by $842,365. Capital assets increased during the current year due to the construction of the new City Community Pool. The decrease in liabilities is mainly due to the retirement of certain notes payable. The following information presented is to assist the reader in understanding the different types of normal impacts that can affect revenues: 1) Economic condition can reflect a declining, stable or growing environment and has a substantial impact on property, non-ad valorem assessments, sales, gas, or other tax revenues as well as consumer spending habits for building permits, user fees and consumption. 2) The City Commission has significant authority to set increases or decreases in City's rates (stormwater, permitting, user fees, etc.) 3) Changing patterns in intergovernmental and grant revenues (both recurring and non-recurring) can significantly change and impact the annual comparisons. 4) Market impacts on investment income may cause investment revenues to fluctuate from the prior year. Some other basic impacts on expenses are reflected below: 1) Introduction of new programs can have a substantial impact on property, non-ad valorem assessments, sales, gas, or other tax revenues as well as consumer spending habits for building permits, user fees and consumption. CITY OF SOUTH MIAMI, FLORIDA  MANAGEMENT’S DISCUSSION AND ANALYSIS    SEPTEMBER 30, 2014      8 2) Changes in service demand levels can cause the City to increase or decrease authorized staffing. 3) Salary increases such as cost of living, performance increases, and market adjustments can impact personal service costs. 4) While inflation appears to be reasonably modest, the City is a major consumer of certain commodities such as chemicals, supplies, fuels, and parts. Some functional expenses may experience unusual commodity specific increases. Statement of Activities: As noted earlier, the statement of activities presents information showing how the City's net position changed during the most recent fiscal year. The following table reflects the City's revenues and expenses for fiscal year 2014 compared to 2013 with the resulting change in net position: Table 2 City of South Miami Changes in Net Position 20142013 Revenues: Program revenues: Charges for services5,453,348$ 5,715,558$ Operating grants and contributions137,859 338,091 Capital grants and contributions2,080,229 176,659 General revenues: Property taxes6,405,571 6,122,439 Franchise taxes1,641,415 1,573,714 Utility taxes2,166,980 2,073,519 Business taxes612,865 619,815 Service concession arrangement377,003 247,616 Interest income (unrestricted)154,231 330,586 Intergovernmental (unrestricted)2,183,058 2,278,685 Miscellaneous427,486 305,259 Total revenues21,640,045 19,781,941 Expenses: General government4,533,671 4,031,775 Public safety6,905,773 7,852,746 Public works3,707,916 3,960,223 Community services999,532 1,248,526 Culture and recreation1,771,944 1,668,264 Interest on long-term debt774,753 830,093 Total expenses18,693,589 19,591,627 Increase in net position2,946,456 190,314 Net position, beginning39,030,318 38,840,004 Net position, ending41,976,774$ 39,030,318$ Governmental Activities CITY OF SOUTH MIAMI, FLORIDA  MANAGEMENT’S DISCUSSION AND ANALYSIS    SEPTEMBER 30, 2014      9 The City's total revenues increased by 9.4%, to $21,640,045 (see Table 2), mainly due to increases in capital grants and contributions and in property and franchise taxes. Nearly 30% of the City's revenues come from property taxes, another 20% comes from intergovernmental and grants, and 25% from charges for services (see chart that follows). The City's management took major actions in 2014 to improve City revenues and to control expenses. The actual numbers for most of the City's revenue sources were above the final budget estimates. City of South Miami Program and General Revenues Charges for services,  25% Operating grants and  contributions, 1% Capital grants and  contributions, 10% Property taxes, 30% Franchise taxes, 8% Utility taxes, 10% Business taxes, 2% Service concession  arrangement, 1% Interest income  (unrestricted), 1%Intergovernmental  (unrestricted), 10%Miscellaneous, 2% The total cost of all programs and services increased by $920,031 or 4.7% (see Table 2). The City's expenses cover a range of services. As shown in Table 2, governmental expenses are largely weighted in three functions, namely the public safety, general government, and public works. At $6,905,773, public safety expense represents 37% of the statement of activities' total expenses for the City in 2014. General Government category expense total for 2014 was $4,533,671, or 24% of total expenses. The General Government category includes all other City departments except public safety, culture and recreation, public works, and non-departmental. Lastly, public works expended $3,707,916, or 20% of expenses. The City does not have any business-type activities. The chart below presents the cost of each of the City's governmental services. Net cost is the total cost of each service less the program revenue generated, fees by each activity and intergovernmental aid. CITY OF SOUTH MIAMI, FLORIDA  MANAGEMENT’S DISCUSSION AND ANALYSIS    SEPTEMBER 30, 2014      10 The net cost shows the financial cost that is placed on the City's taxpayers by each of these services: City of South Miami Functional Expenses Governmental Activities 0% 5% 10% 15% 20% 25% 30% 35% 40% General government Public safety Public works Community services Culture and recreation Interest  on long‐term debt Governmental Activity 24%37%20%5%9%5% Governmental Activity Functions/Programs The cost of all governmental activities this year, including $774,753 in interest expense on long-term debt, was $18,693,589. Some of that cost was financed by those who directly benefited from the programs through charges for services ($5,453,348). The City financed the remaining $13,240,241 "public benefit" portion of governmental activities from property taxes, utility taxes and with other revenues, such as interest and unrestricted intergovernmental revenue. CITY OF SOUTH MIAMI, FLORIDA  MANAGEMENT’S DISCUSSION AND ANALYSIS    SEPTEMBER 30, 2014      11 GOVERNMENTAL FUNDS' FINANCIAL ANALYSIS  As the City completed the year, its governmental funds reported combined fund balances of $17,194,003, with the general fund representing $10,782,848. Of the total fund balances; $312,694 is nonspendable, $5,963,051 is restricted, $1,739,066 is committed, $4,312,266 is assigned, and $4,866,929 is unassigned fund balance. The General Fund's fund balance increased by $1,446,183 after transfers of a net -$391,827. General fund revenues were fairly consistent for the years ended 2014 and 2013. Please refer to the General Fund Budget Highlights section below for further information. During the current year the Grant Fund's fund balance increased by $16,266. There was $1,738,443 in capital outlay expenditures, which were funded through grants. GENERAL FUND BUDGETARY HIGHLIGHTS  Over the course of the year, the City amended the General Fund budget. The budget was amended during the fiscal year, in accordance with the City Charter, to account for rollovers related to capital improvement projects, to account for additional funding for unforeseen expenditures, personnel changes and for prior year encumbrances. The base revenue budget for fiscal year 2014 was $16,498,050. The difference between the estimated revenues and the actual revenues in the General Fund was $307,240 for fiscal year 2014. Actual revenues, at $16,805,290 came in higher than the final budget of $16,498,050. Comparing the original budget to the final budget, the fiscal year 2014; the original expenditure budget was $16,652,053. Actual expenditures were $14,980,959 and were below the final budget by $16,677,972. All other expenditures were in line with the projected expectations. Please refer to page 50 through 51 for further details. CITY OF SOUTH MIAMI, FLORIDA  MANAGEMENT’S DISCUSSION AND ANALYSIS    SEPTEMBER 30, 2014      12 CAPITAL ASSETS AND DEBT ADMINISTRATION  Capital Assets: The City of South Miami's investment in capital assets for its governmental activities as of September 30, 2014, is detailed below: 20142013 Land 14,603,765$ 14,603,765$ Construction in progress93,643 93,643 Building and improvements16,238,519 14,951,827 Machinery and equipment2,001,452 2,119,149 Land improvements349,779 302,067 Infrastructure6,280,033 6,482,530 Intangible assets159,397 249,048 39,726,588$ 38,802,029$ Governmental activities For fiscal year 2014 the City spent $2,483,646 on capital programs primarily in the construction of the City’s new Community Pool, acquisition of vehicles and equipment, and park improvements. Additional information on the City's capital assets can be found in Note 6 on page 34 of this report. Debt Administration: At year-end, the City had $14 million in outstanding debt, as noted below: 20142013 Florida Municipal Loan Council Bonds6,420,000$ 6,620,000$ Taxable Revenue Note, Series 20116,845,000 7,210,000 CRA Bond Series 2006359,745 625,930 Notes payable386,816 586,502 Capital leases48,547 95,579 14,060,108$ 15,138,011$ Governmental activities CITY OF SOUTH MIAMI, FLORIDA  MANAGEMENT’S DISCUSSION AND ANALYSIS    SEPTEMBER 30, 2014      13 ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATIOS  The State of Florida, by constitution, does not have a state personal income tax and therefore, the State operates primarily using sales, gasoline and corporate income taxes. Local governments (cities, counties, and school boards) primarily rely on property and a limited array of permitted other taxes (sales, telecommunication, gasoline, utilities services, etc.) and fees (franchise, building permits, occupational license, etc.) for their governmental activities. There are a limited number of state-shared revenues and recurring and non-recurring (one-time) grants from both the state and federal governments. For certain governmental activities (building inspections, recreational programs, etc.) the user pays a related fee or charge associated with the service. Estimated revenues and other financing sources in fiscal year 2015 General Fund budget are $17,281,743, an increase of $168,280 from actual revenues and transfers of $17,113,463 for fiscal year 2014. With these revenues the City will be able to fund current services and any expected impact of inflation on fuel, salaries and benefits. Fiscal year 2015 budgeted expenditures is expected to be $ 17,659,802, or $2,678,843 more than fiscal year 2014 total actual expenditures of $14,980,959 if estimates are realized. The City's budgetary General Fund balance is expected to decrease minimally by the close of 2015. REQUESTS FOR INFORMATION  The City's financial statements are designed to present users (citizens, taxpayers, customers, investors and creditors) with a general overview of the City's finances and to demonstrate the City's accountability. If you have questions about the report or need additional financial information, please contact Alfredo Riverol, CPA, CGFM, CGMA, Cr.FA, Chief Financial Officer, City of South Miami, 6130 Sunset Drive, Miami, Florida 33143. CITY OF SOUTH MIAMI, FLORIDA  STATEMENT OF NET POSITION      SEPTEMBER 30, 2014      The notes to the basic financial statements are an integral part of these financial statements. 14 Governmental Activities Assets Cash and cash equivalents17,918,335$ Receivables 1,215,156 Prepaid expenses 312,692 Accrued interest receivable237,370 Notes receivable 8,581,790 Guaranteed rent receivable3,048,534 Net pension asset 35,707 Capital assets: Capital assets not being depreciated14,697,408 Capital assets, net of accumulated depreciation25,029,180 Total Assets 71,076,172 Deferred outflow of resources Deferred loss on bond refunding639,528 Liabilities Accounts payable 855,773 Accrued liabilities 266,567 Unearned revenue 446,723 Other liabilities 683,115 Accrued interest payable 383,022 Due within one year: Compensated absences payable379,181 Debt, including bonds, notes payable and capital leases1,547,807 Due in more than one year: Compensated absences payable884,755 Debt, including bonds, notes payable and capital leases12,512,301 Net OPEB obligation 149,358 Total Liabilities 18,108,602 Deferred inflow of resources Service concession arrangement11,630,324 Net Position Net investment in capital assets26,306,008 Restricted for: Debt service reserve 450,838 Community services 263,554 Grant project 610,948 Stormwater management314,706 Transportation projects2,246,274 Law enforcement 2,076,732 Unrestricted 9,707,714 Total Net Position 41,976,774$ CI T Y  OF  SO U T H  MI A M I ,  FL O R I D A   ST A T E M E N T  OF  AC T I V I T I E S     YE A R  EN D E D  SE P T E M B E R  30 ,  20 1 4      Th e n o t e s t o t h e b a s i c f i n a n c i a l s t a t e m e n t s a r e an i n t e g r a l p a r t o f t h e s e f i n a n c i a l s t a t e m e n t s . 15 Net (Expenses)Revenue and Changes in Net Position Ch a r g e s O p e r a t i n g C a p i t a l fo r G r a n t s  an d G r a n t s  an d G o v e r n m e n t a l Fu n c t i o n s / P r o g r a m s E x p e n s e s S e r v i c e s C o n t r i b u t i o n s C o n t r i b u t i o n s A c t i v i t i e s Pr i m a r y  Go v e r n m e n t    Go v e r n m e n t a l  Ac t i v i t i e s Ge n e r a l g o v e r n m e n t 4 , 5 3 3 , 6 7 1 $ 1 , 0 9 7 , 7 3 2 $ 3 , 0 0 0 $ - $ ( 3 , 4 3 2 , 9 3 9 ) $ Pu b l i c s a f e t y 6 , 9 0 5 , 7 7 3 3 , 9 1 3 , 3 9 1 1 0 0 , 7 3 7 - ( 2 , 8 9 1 , 6 4 5 ) Pu b l i c w o r k s 3 , 7 0 7 , 9 1 6 3 6 , 0 0 0 - 3 0 3 , 8 3 6 ( 3 , 3 6 8 , 0 8 0 ) Co m m u n i t y s e r v i c e s 9 9 9 , 5 3 2 - 3 4 , 1 2 2 - ( 9 6 5 , 4 1 0 ) Cu l t u r e a n d r e c r e a t i o n 1 , 7 7 1 , 9 4 4 - - 1 , 7 7 6 , 3 9 3 4 , 4 4 9 In t e r e s t o n l o n g - t e r m d e b t 7 7 4 , 7 5 3 4 0 6 , 2 2 5 - - ( 3 6 8 , 5 2 8 ) To t a l G o v e r n m e n t a l A c t i v i t i e s 1 8 , 6 9 3 , 5 8 9 $ 5 , 4 5 3 , 3 4 8 $ 1 3 7 , 8 5 9 $ 2 , 0 8 0 , 2 2 9 $ ( 1 1 , 0 2 2 , 1 5 3 ) Ge n e r a l R e v e n u e s Pr o p e r t y t a x e s 6,405,571 Ut i l i t y t a x e s 2,166,980 Bu s i n e s s t a x e s 612,865 Fr a n c h i s e f e e s 1,641,415 Se r v i c e c o n c e s s i o n a r r a n g e m e n t 3 7 7 , 0 0 3 In t e r e s t i n c o m e ( u n r e s t r i c t e d ) 1 5 4 , 2 3 1 In t e r g o v e r n m e n t a l ( u n r e s t r i c t e d ) 2 , 1 8 3 , 0 5 8 Ot h e r 427,486 To t a l g e n e r a l r e v e n u e s 1 3 , 9 6 8 , 6 0 9 Ch a n g e i n n e t p o s i t i o n o f g o v e r n m e n t a l a c t i v i t i e s 2 , 9 4 6 , 4 5 6 Ne t P o s i t i o n - b e g i n n i n g 39,030,318 Ne t P o s i t i o n - e n d i n g 41,976,774$ Pr o g r a m  Re v e n u e s CITY OF SOUTH MIAMI, FLORIDA  BALANCE SHEET  GOVERNMENTAL FUNDS    SEPTEMBER 30, 2014      The notes to the basic financial statements are an integral part of these financial statements. 16 General Fund Assets Cash and cash equivalents12,237,694$ 545,519$ 5,135,122$ 17,918,335$ Receivables527,695 531,912155,549 1,215,156 Due from other funds1,411,525 958,320860,211 3,230,056 Prepaid expenditures241,679 - 71,013 312,692 Total Assets 14,418,593$ 2,035,751$ 6,221,895$ 22,676,239$ Liabilities and Fund Balances Liabilities Accounts payable468,018$ 96,467$ 291,288$ 855,773$ Accrued liabilities261,182 - 5,385 266,567 Due to other funds1,818,531 1,287,928123,597 3,230,056 Unearned revenue406,315 40,408- 446,723 Other liabilities681,699- 1,416 683,115 Total Liabilities 3,635,745 1,424,803 421,686 5,482,234 Fund Balances Nonspendable: Prepaid expenditures241,679 - 71,013 312,692 Restricted for: Debt service reserve- - 450,838 450,838 Community services- - 263,554 263,554 Grant projects- 610,948 - 610,948 Stormwater management- - 314,706 314,706 Transportation projects- - 2,246,274 2,246,274 Law enforcement- - 2,076,732 2,076,732 Committed to: Emergency and disaster - recovery operating reserve 1,717,288- - 1,717,288 Tree projects- - 4,528 4,528 Parking management - - 17,250 17,250 Assigned to: Capital projects - - 355,314 355,314 Subsequent year's budget3,956,952 - - 3,956,952 Unassigned4,866,929- - 4,866,929 Total Fund Balances 10,782,848 610,948 5,800,209 17,194,005 Total Liabilities and Fund Balances 14,418,593$ 2,035,751$ 6,221,895$ 22,676,239$ Grant Fund Total  Governmental  Funds Nonmajor  Governmental  Funds Major Funds CITY OF SOUTH MIAMI, FLORIDA  RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS  TO THE STATEMENT OF NET POSITION    SEPTEMBER 30, 2014      The notes to the basic financial statements are an integral part of these financial statements. 17 FUND BALANCES - TOTAL GOVERNMENTAL FUNDS17,194,005$ Amounts reported for governmental activities in the statement of net position are different because: Certain assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds: The details of the difference are as follows: Notes receivable 8,581,790 Guaranteed rent receivable3,048,534 Accrued interest receivable237,370 Net pension asset 35,707 Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds.39,726,588 Receivables and related liabilities in governmental funds are susceptible to full accrual on the government-wide statements: Deferred inflows from service concession arrangement(11,630,324) Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds: The details of the difference are as follows: Bonds payable (6,420,000) Notes payable (7,591,561) Capital leases payable(48,547) Deferred loss on bond refunding639,528 Accrued interest payable(383,022) OPEB liability (149,358) Compensated absences payable(1,263,936) Net Position of Governmental Activities 41,976,774$ CITY OF SOUTH MIAMI, FLORIDA  STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES  OF GOVERNMENTAL FUNDS    SEPTEMBER 30, 2014      The notes to the basic financial statements are an integral part of these financial statements. 18 Total Governmental General Fund Funds Revenues Taxes: Ad valorem5,380,487$ -$ 1,025,084$ 6,405,571$ Utility taxes2,159,537 - 7,443 2,166,980 Business taxes612,865 - - 612,865 Franchise fees1,641,415 - - 1,641,415 Intergovernmental1,578,176 1,776,393954,698 4,309,267 Licenses and permits1,095,232 - 2,500 1,097,732 Fines and forfeitures846,219 - 2,914 849,133 Charges for services2,821,013 - 36,000 2,857,013 Rents and royalties265,401 - 761,072 1,026,473 Interest100,188 4,41940,433 145,040 Miscellaneous318,436 - 200,929 519,365 Total Revenues 16,818,969 1,780,812 3,031,073 21,630,854 Expenditures Current: General government3,683,783- - 3,683,783 Public safety6,460,8908,85894,319 6,564,067 Public works3,023,02717,245211,800 3,252,072 Parks and recreation1,590,736 - 82,950 1,673,686 Community services- - 970,583 970,583 Capital outlay- 1,738,443745,203 2,483,646 Debt service: Principal payments219,682 - 858,221 1,077,903 Interest and fiscal charges2,841 - 692,007 694,848 Total Expenditures 14,980,959 1,764,546 3,655,083 20,400,588 Excess (Deficiency) of Revenues Over Expenditures 1,838,010 16,266 (624,010) 1,230,266 Other Financing Sources (Uses) Transfers in308,173 - 700,000 1,008,173 Transfers out(700,000) - (308,173) (1,008,173) Total Other Financing Sources (Uses)(391,827) - 391,827 - Net change in fund balances1,446,183 16,266 (232,183) 1,230,266 Fund Balances - Beginning 9,336,665 594,682 6,032,392 15,963,739 Fund Balances - Ending 10,782,848$ 610,948$ 5,800,209$ 17,194,005$ Grant Fund Nonmajor  Governmental  Funds Major Funds CITY OF SOUTH MIAMI, FLORIDA  RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES  IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES    YEAR ENDED SEPTEMBER 30, 2014      The notes to the basic financial statements are an integral part of these financial statements. 19 NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS1,230,266$ 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 depreciated over their estimated useful lives: Details of the difference are as follows: Expenditures for capital assets2,246,160$ Related accumulated depreciation(1,318,934) 927,226 In the statement of activities, only the loss on the disposal of capital assets is reported, whereas in the governmental funds, only the proceeds from the disposal are reported: Cost of assets disposed(120,000) Related accumulated depreciation117,333 (2,667) Principal payments received on notes receivable and payments on guaranteed rent receivable are reported as revenue in the governmental funds because they provide current financial resources, but are reported as a reduction of assets in the statement of net assets.(377,003) Certain revenues do not provide current financial resources and, therefore, are not reported in the governmental funds: Net revenues from service concession arrangement377,003 Change in accrued interest on notes receivable9,191 Principal payments on long-term debt are reported as an expenditure in governmental funds, but as a reduction of long-term liabilities/debt in the statement of net position.1,077,903 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: Amortization of deferred loss on refunding(49,195) Change in net OPEB obligation(32,865) Change in net pension obligation (asset)(22,670) Change in compensated absences payable(160,023) Change in accrued interest payable(30,710) Change in Net Assets of Governmental Activities 2,946,456$ CITY OF SOUTH MIAMI, FLORIDA  STATEMENT OF FIDUCIARY NET POSITION  FIDUCIARY FUNDS    SEPTEMBER 30, 2014      The notes to the basic financial statements are an integral part of these financial statements. 20 Employee Retirement Funds Assets Cash and cash equivalents 504,377$ Investments, at fair value: U.S. Government securities1,956,506 Corporate obligations 2,727,390 Common stocks 4,931,789 International equity 18,967,525 Mutual funds 3,668,204 Total cash, cash equivalents and investments 32,755,791 Receivables: Employer contribution 196,190 Employee contribution 45,527 Dividends and interest 39,156 Section 185 contribution 129,659 Total receivables 410,532 Other assets: Prepaid expenses 2,021 Total Assets 33,168,344 Liabilities Accounts payable 71,315 Minimum funding liability 37,780 Total Liabilities 109,095 Net Position Restricted for pension benefits33,059,249$ CITY OF SOUTH MIAMI, FLORIDA  STATEMENT OF CHANGES IN FIDUCIARY NET POSITION  FIDUCIARY FUNDS    YEAR ENDED SEPTEMBER 30, 2014      The notes to the basic financial statements are an integral part of these financial statements. 21 Employee Retirement Funds Additions Contributions: Employer 840,437$ Employees 577,369 Section 185 contributions 129,659 Total contributions 1,547,465 Investment income: Net appreciation in fair value of investments2,650,332 Interest and dividends 582,348 Total investment income3,232,680 Less investment expenses 100,391 Net investment income3,132,289 Total additions 4,679,754 Deductions Benefits paid 1,139,037 Refunds of contributions 176,076 Administrative expenses 117,147 Minimum benefit funding payment37,780 Total deductions 1,470,040 Change in net position3,209,714 Net position restricted for pension benefit - beginning - as restated29,849,535 Net position restricted for pension benefit - ending33,059,249$ CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      22 Note 1—General description of the city  The City of South Miami, Florida (the "City") is a political subdivision of the State of Florida, located in Miami- Dade County. The City was incorporated in 1927 and has operated since 1978 under the same charter. It is located approximately 3 miles south of the City of Miami and borders the University of Miami’s main campus and the City of Coral Gables and The Village of Pinecrest. The City is approximately 2.5 square miles in area and has a population of approximately 13,000 residents. The City is a full service city providing its citizens with a full complement of municipal services, specifically public safety, general government, parks, culture and recreation, sanitation, public works, and community services. It also maintains various trust funds in a fiduciary capacity, but does not provide any educational facilities, water, wastewater or fire services. Those services are provided by the Miami-Dade County Public School System and Miami-Dade County, Florida. Note 2—Summary of significant accounting policies   Financial Reporting Entity: The financial statements of the City have been prepared in conformity with accounting principles generally accepted in the United States of America (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. As defined by GASB, the financial reporting entity is required to include (a) the primary government, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. Blended component units, although legally separate entities are, in substance, part of the government’s operations and so 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 statement of net position to emphasize they are legally separate from the government. Blended Component Unit: The South Miami Community Redevelopment Agency (the "CRA") is deemed to be a separate, distinct and independent legal entity controlled by a board of seven members, which include five members of the City's elected Commission. Since the governing body is substantially the same as the governing body of the primary government and there is a financially beneficial relationship between the City’s general government and the CRA, the CRA is determined to be a component unit of the City. The CRA falls under the requirements of Chapter 163 Part III of the Florida Statutes. Consequently, this component unit is reported in the primary government using the blended method. Individual financial statements for the CRA are available through the Finance Department of the City at 6130 Sunset Drive, South Miami, Florida 33143. Discretely Presented Component Units: There are no discretely presented component units for the City. CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      23 Note 2—Summary of significant accounting policies (continued)  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 non-fiduciary activities of the primary government and its component units. The effect of the interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The City has no business-type activities. 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 and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental 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 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. 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. Property taxes and charges for services are considered available when collected in the current year or within sixty days subsequent to year end; provided that amounts received pertain to billings through the fiscal year just ended. Intergovernmental revenues, franchise fees and utility service taxes are recorded in accordance with their legal or contractual requirements if collected in the current period or within sixty days after year end. Revenues derived from rents and royalties and investment income are recorded when earned. Permits, fines and forfeitures, and other revenue are recorded as revenue when received in cash because they are generally not measurable until actually received. Business license revenue collected in advance of periods to which they relate is recorded as unearned revenue. 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, pension, other post- employment benefits and claims and judgments, are recorded when due. The City reports the following major governmental funds: The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      24 Note 2—Summary of significant accounting policies (continued)  The Grants Fund is one of the City’s special revenue funds. It accounts for grant funding received that is restricted for specific projects as defined by the grantor agencies. Additionally, the government reports the following fiduciary fund type: The fiduciary funds account for the activities of the General Employees and Police Officers Pension Plan and the Police Officers Retirement Trust Fund – Section 185 Plan that accumulates resources for pension benefit payments to qualified general and public safety employees. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes whose purpose has not been restricted to a specific program. The City uses restricted amounts to be spent first when both restricted and unrestricted fund balance is available unless there are legal documents/contracts that prohibit doing this, such as in grant agreements requiring dollar for dollar spending. Additionally, the City would first use committed fund balance, followed by assigned fund balance and then unassigned fund balance when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used. Cash, Cash Equivalents and Investments: The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of purchase. Investments for the government, as well as its component unit and fiduciary funds, are carried at fair value. Unrealized gains and losses in fair value are recognized. Receivables: Receivables consist of amounts due for charges for services, fees, property taxes, intergovernmental revenues and grants. If the ultimate collectability of receivables became uncertain, the City would provide an allowance for that amount. As of September 30, 2014, there were no receivables deemed uncollectible by management. Prepaid Expenses/Expenditures: Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      25 Note 2—Summary of significant accounting policies (continued)  Ad Valorem Taxes: Property values are assessed as of January 1 of each year, at which time taxes become an enforceable lien on property. Tax bills are mailed for the City by Miami-Dade County on or about October 1 of each year and are payable with discounts of up to 4% offered for early payment. Taxes become delinquent on April 1 of the year following the year of assessment and State law provides for enforcement of collection of property taxes by seizure of the personal property or by the sale of interest-bearing tax certificates to satisfy unpaid property taxes. Assessed values are established by the Miami-Dade County Property Appraiser. In November 1992, a Florida constitutional amendment was approved by the voters which provides for limiting the increases in homestead property valuations for ad valorem tax purposes to a maximum of 3% annually and also provides for reassessment of market values upon changes in ownership. The County bills and collects all property taxes and remits them to the City. Procedures for the collection of delinquent taxes by Miami-Dade County are provided for in the Laws of Florida. There were no material delinquent property taxes in the fiscal year ended September 30, 2014. State statutes permit municipalities to levy property taxes at a rate of up to 10 mills ($ 10 per $ 1,000 of assessed taxable valuation). The tax levy of the City is established by the City Commission and the Miami- Dade County Property Appraiser, who incorporates the City's millage into the total tax levy, which includes the County and the County School Board tax requirements. The millage rate assessed by the City for the year ended September 30, 2014 was 4.3639 mills ($ 4.3639 mils per $ 1,000 of the taxable value). Capital Assets: Capital assets, which include land, construction in progress, buildings and improvements, machinery and equipment, land improvements, infrastructure assets (e.g., roads, sidewalks, culverts, pump stations, stormwater lines, catch basins, and similar items), and intangibles, are reported in the governmental activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $ 5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. Capital assets are depreciated/amortized using the straight-line method over the following estimated useful lives: Buildings and improvements 50 years Machinery and equipment 5-15 years Land improvements 20 years Infrastructure 40-50 years Intangibles 5 years CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      26 Note 2—Summary of significant accounting policies (continued)  Unearned Revenue: Governmental funds defer revenue recognition in connection with resources that have been received, but not yet earned. This is classified as unearned revenue. Unearned revenues at the government-wide level arise only when the City receives resources before it has a legal claim to them. Compensated Absences: City employees are granted annual leave (vacation) and sick leave in varying amounts based on length of service and the department in which the employee serves. Annual leave: Effective October 1995, the City’s annual leave policy requires that earned vacation must be taken within one year of the employee’s anniversary date, as there is no carryover from one period to another. Unused accrued vacation pay, if any, is paid at employee’s termination or retirement. Sick leave: Effective October 1995, employees may accumulate sick leave without a maximum cap, but will not be paid upon termination or retirement. Employees hired on or before October 1995, may accumulate unused sick leave to a maximum of 600 hours. Upon termination or retirement sick leave is paid to those employees, hired on or before October 1995, on a pro rata formula based upon years of service. The City reports the liability for compensated absences in the governmental activities of the government-wide financial statements when earned. The current portion is the amount estimated to be due in the following fiscal year. Expenditures for compensated absences are recorded in the governmental funds only for employees who had terminated their employment as of the end of the fiscal year. The General Fund has typically been used to liquidate such amounts. Long-Term Obligations: In the government-wide financial statements, long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Long-term debt is reported net of the applicable premium or discount. For bond refundings resulting in the defeasance of debt reported in the government-wide financial statements, the difference between the reacquisition price and the net carrying amount of the old debt is deferred and amortized as a component of interest expense. The accounting gain or loss is amortized over the remaining life of the old debt or the life of the new debt, whichever is shorter, and is presented as deferred outflow or inflow in the statement of net position. In the fund financial statements, governmental fund types recognize debt premiums and discounts, as well as debt issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuance 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. CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      27 Note 2—Summary of significant accounting policies (continued)  Equity Classifications: Government-wide financial statements: Net position in the government-wide financial statements is displayed in three categories: 1) net investment in capital assets, 2) restricted, or 3) unrestricted. Net investment in capital assets consists of capital assets reduced by accumulated depreciation and by any outstanding debt incurred to acquire, construct, or improve those assets, excluding unexpended proceeds. Net position is reported as restricted when constraints are placed on their use either by external groups such as creditors, grantors, contributors, or laws and regulations of other governments; or law through constitutional provisions or enabling legislation. Remaining net position that does not meet the definition of “restricted” or “net investment in capital assets,” is reported as unrestricted. Fund financial statements: The City presents fund balance in accordance with GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. This statement requires that governmental fund financial statements present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. The classifications used in the governmental fund financial statements are as follows: Nonspendable: This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) are legally or contractually required to be maintained intact. “Not in spendable form” includes items that are not expected to be converted into cash (such as inventories and prepaid amounts) and items such as long-term amount of loans and notes receivable, as well as property acquired for resale. The corpus (or principal) of a permanent fund is an example of an amount that is legally or contractually required to be maintained intact. In fiscal year 2014, this represents $312,691. Restricted: This classification includes amounts for which constraints have been placed on the use of the resources either (a) externally imposed by creditors (such as through a debt covenant), grantors, contributors, or laws or regulations of other governments, or (b) imposed by law through constitutional provisions or enabling legislation. In fiscal year 2014, this represents $5,963,051. Committed: This classification includes amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision making. The City Commission is the highest level of decision-making authority for the government that can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken (the adoption of another ordinance) to remove or revise the limitation. Resources accumulated pursuant to stabilization arrangements are reported in this category. In fiscal year 2014, this represents $1,739,066. CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      28 Note 2—Summary of significant accounting policies (continued)  Assigned: This classification includes amounts that are constrained by the City’s intent to be used for a specific purpose but are neither restricted nor committed. The City Commission has by resolution authorized the City Finance Director to assign fund balance. The City Commission may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s budget. Unlike commitments, assignments generally can only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment. In fiscal year 2014, this represents $4,312,266. In the General Fund, assigned fund balance for subsequent year’s budget amounted to $3,956,952. Unassigned: This classification includes the residual fund balance for the General Fund. This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed or assigned for those specific purposes. In fiscal year 2014, this represents $4,866,929. Minimum Fund Balance Policy and Emergency and Disaster Recovery Reserve: The City’s policy is to maintain an adequate General Fund balance to meet seasonal shortfalls in cash flow and reduce susceptibility to emergency and unanticipated expenditures and/or revenue shortfalls. The City’s Commission had previously adopted an ordinance (No. 23-08-1958) to maintain an Emergency and Disaster Recovery Operating Reserve at a minimum level of approximately $1,717,288 (10% of budgeted expenditures) and a Minimum Fund Balance, ranging from 20% to 50%, of the annual General Fund expenditures. 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 reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Some of these estimates include assessing the collectability of receivables, the realization of pension and other-post- employment obligations/assets and the useful lives of capital assets. Although those estimates are based on management's knowledge of current events and actions it may undertake in the future, they could ultimately differ from actual results. Internal Balances: Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the fiscal year is referred to as "due to/from other funds" (i.e., the current portion of inter-fund loans). These amounts reported in the fund financial statements as due/to other funds are eliminated in the government-wide governmental columns of the statement of net assets. CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      29 Note 2—Summary of significant accounting policies (continued)  Deferred Outflows and Inflows of Resources: In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net position that applies to a future period and so will not be recognized as an expense or expenditure until then. The City has one item that meets this criterion, an unamortized loss on a bond refunding. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflow of resources. This separate financial statement element represents an acquisition of net position that applies to a future period and so will not be recognized as revenue until then. The City has only one item that meets this criterion, service concession arrangements which is discussed further in Note 7. Date of Management’s Review: Subsequent events were evaluated by management through March 25, 2015, which is the date the financial statements were available to be issued. Restatement due to New GASB Implementation: The City pension plans adopted GASB 67 Financial Reporting for Pension Plans for the year ended September 30, 2014. GASB 67 requires additional disclosures and supplemental information for the City’s pension plans and also requires all benefits be included in net position. As such, implementation of GASB 67 required the reclassification of a reserve for future pension benefits from a liability to net position in the amount of $52,579. Net position of the fiduciary funds as of October 1, 2013 has been restated accordingly. Note 3—Deposits and investments   The City, for accounting and investment purposes, maintains various accounts for use by all City funds. Deposits - City: Florida Statutes authorize the deposit of City funds in demand deposits or time deposits of financial institutions approved by the State Treasurer. These are defined as public deposits. All City public deposits are held in qualified public depositories pursuant to Chapter 280, Florida Statutes, "Florida Security for Public Deposits Act." Under the act, all qualified public depositories are required to pledge eligible collateral having a market value equal to or greater than the average daily or monthly balance of all public deposits times the depository's collateral pledging level. The collateral pledging level may range from 50% to 125% depending upon the depository's financial condition and the length of time that the depository has been established. All collateral must be deposited with the State Treasurer. Any losses to public depositors resulting from insolvency are covered by applicable deposit insurance, sale of securities pledged as collateral and, if necessary, assessment against other qualified public depositories of the same type as the depository in default. The City's bank balances were insured either by the Federal Depository Insurance Corporation or collateralized in the bank's participation in the Florida Security for Public Deposits Act. As of September 30, 2014, the carrying amount of the City’s book balance for deposits held with financial institutions totaled $7,378,905 and the bank balance was $7,423,782.   CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      30 Note 3—Deposits and investments (continued)  Investments - City: The City previously adopted a comprehensive investment policy established in accordance with Section 218.415, Florida Statutes. The investment policy applies to all investments held or controlled by the City with the exception of the City-sponsored employee pension plans and its debt issuances where there are other existing policies or indentures in effect for the investment of related funds. Allowable investments include United States government securities, United States government agencies and sponsored agencies repurchase agreements, commercial paper, state and local government taxable and/or tax- exempt debt, money market mutual funds, intergovernmental investment pools, corporate obligations, certificates of deposit, and other investments authorized by City Commission from time to time. The City manages its risk by establishing strict guidelines related to interest rates, credit worthiness, concentration and custodial credit. In addition, the City is not directly exposed to foreign credit risk.   As of September 30, 2014, the City had the following cash equivalents: Maturity Investment TypeFair ValueLess than 1 Year Repurchase agreement10,354,613$ 10,354,613$ Total fair value10,354,613$ A reconciliation of deposits and cash equivalents as shown by category is as follows: Category: Deposits7,562,220$ Petty cash1,502 Cash equivalents10,354,613 17,918,335$ Investments - Pension Plan: The General Employees and Police Officers Pension Plan (the “Plan”) and the Police Officers Retirement Trust Fund-Section 185 Plan (the “Fund”) investments are held separately from those of other City funds and are shown in a separate fiduciary fund. As prescribed by the Plan and Fund investment policies, they are authorized to invest among several institutionally acceptable asset classes including bonds, debentures and other corporate obligations, equity securities and domestic real estate. The City’s Plan and Fund investment policies are determined by their respective Board of Trustees. CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      31 Note 3—Deposits and investments (continued)  The Plan and Fund have investments in a combination of stocks, bonds, government securities and other investment securities. Investment securities are exposed to various risk, such as interest rate, market and credit risk. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is at least reasonably possible that changes in risks in the near term would materially affect balances and the amounts reported in the statement of fiduciary net assets and the statement of changes in fiduciary net assets. The Plan and Fund, through its investment advisors, monitors the Plan and Fund’s investments and the risks associated with them on a regular basis, which is believed to minimize these risks.   Credit Risk: Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. The Plan and Fund have an investment policy that targets investments of the safest types of securities. This policy requires a diversified portfolio to minimize the potential loss on individual securities. The Plan and Fund’s investment policy utilizes portfolio diversification in order to control the risk. The Plan and Fund fixed income investments had the following ratings at September 30, 2014 from a nationally recognized rating agency: General Employees andPolice Officers Police OfficersRetirement Trust Moody's Credit RatingPension PlanFund Section 185Total A1 - A3-$ 34,023$ 34,023$ Aa2 - Aaa- 4,532 4,532 Aa3- 150,182 150,182 AAAm496,348 - 496,348 AAA-Bb+2,572,384 - 2,572,384 Ba1 - Baa3- 108,692 108,692 3,068,732$ 297,429$ 3,366,161$ Interest Rate Risk: Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Duration is a measure of the price sensitivity of a fixed income portfolio to changes in interest rates. The longer the duration of a portfolio, the greater its price sensitivity to changes in interest rates.   CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      32 Note 3—Deposits and investments (continued)    The Plan and Fund’s investments in fixed income securities had maturities as follows: Less Than1 to 56 to 10More Than Investment TypeFair Value1 YearYearsYears10 Years Money market funds496,348$ 496,348$ -$ -$ -$ U.S. Government and Agency Securities1,956,506 - 377,172 28,723 1,550,611 Corporate Obligations2,727,390 40,868 1,517,530 652,556 516,436 Totals5,180,244$ 537,216$ 1,894,702$ 681,279$ 2,067,047$ Concentration of Credit Risk: The investment policy of the Plan and Fund limits investments in the stock of any one issuing company to 5% of the Fund’s or Plan’s assets at cost and to 5% of the outstanding capital stock of that company. Furthermore, investments in equities shall not exceed 70% of the Fund’s assets at market value, and foreign equity investments shall not exceed 20% of the Fund’s assets at market value. For fixed income securities, not more than 5% of the Fund’s fixed income portfolio at cost shall be invested in the securities of any single corporate issuer. Custodial Credit Risk: For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty the Plan and Fund will not be able to recover their investments or collateral securities that are in possession of an outside party. At September 30, 2014 and consistent with their investment policies, the Plan and Fund’s securities were registered in their name, nominee registration. Foreign Credit Risk: Foreign credit risk is the risk that fluctuations in currency exchange rates may affect transactions conducted in currencies other than U.S. dollars as well as the carrying value of foreign investments. The Plan and Fund’s exposure to foreign credit risk derives mainly from equity securities. As of the year end, investment balances in foreign investments are within policy limits. The Plan and Fund do not have exposure to foreign credit risk and the City has no formal policy relating to foreign currency risk.   CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      33 Note 4—Receivables   Receivables at September 30, 2014 were as follows: Nonmajor GrantGovernmental General FundFundFundsTotal Receivable type: Intergovernmental288,346$ 531,912$ 155,549$ 975,807$ Franchise fees88,126 - - 88,126 Utility taxes136,626 - - 136,626 Accounts14,597 - - 14,597 Total receivables527,695$ 531,912$ 155,549$ 1,215,156$ Major Funds Note 5—Interfund balances and transfers  Interfund balances at September 30, 2014 and the amount of interfund transfers for the fiscal year ended are summarized as follows: Nonmajor GrantGovernmental Receivable Fund General FundFundFundsTotal General Fund-$ 1,287,928$ 123,597$ 1,411,525$ Grant fund958,320 958,320 Nonmajor Governmental Funds860,211 - - 860,211 1,818,531$ 1,287,928$ 123,597$ 3,230,056$ Payable Fund Major Funds The interfund 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. All of the above amounts are expected to be repaid shortly after year end from available current assets and next year funding. During the year, $600,000 was transferred from General Fund to the Capital Improvements Program Fund, respectively, to assist with capital improvement project requirements. Also during the year, $100,000 was transferred to the Community Redevelopment Agency Fund to assist in funding operations. The remaining transfers were to the General Fund from the Community Redevelopment Agency Fund and other non-major funds to reimburse the General Fund for expenditures incurred. CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      34 Note 6—Capital assets   Capital asset activity for the year ended September 30, 2014 was as follows: BalanceBalance September 30,Decreases/September 30, Governmental Activities 2013IncreasesTransfers2014 Capital assets not being depreciated: Land14,603,765$ -$ -$ 14,603,765$ Construction in progress93,643 - - 93,643 Total capital assets not being depreciated14,697,408 - - 14,697,408 Capital assets being depreciated: Buildings and improvements18,009,663 1,680,495 - 19,690,158 Machinery and equipment6,622,960 482,665 120,000 6,985,625 Land improvements929,250 83,000 - 1,012,250 Infrastructure9,226,358 - - 9,226,358 Intangible assets448,257 - - 448,257 Total capital assets being depreciated35,236,488 2,246,160 120,000 37,362,648 Less accumulated depreciation for: Buildings and improvements3,057,836 393,803 - 3,451,639 Machinery and equipment4,503,811 597,695 117,333 4,984,173 Land improvements627,183 35,288 - 662,471 Infrastructure2,743,828 202,497 - 2,946,325 Intangible assets199,209 89,651 - 288,860 Total accumulated depreciation11,131,867 1,318,934 117,333 12,333,468 Total capital assets, being depreciated net24,104,621 927,226 2,667 25,029,180 Governmental activities capital assets, net38,802,029$ 927,226$ 2,667$ 39,726,588$ Provision for depreciation/amortization was charged to functions/programs of the City as follows: General government 631,663$ Public safety 341,706 Public works 218,358 Culture and recreation 98,258 Community services 28,949 Total depreciation expense - governmental activities1,318,934$   CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      35 Note 7—Service concession arrangement and note receivable   The City previously entered into an agreement with Mark Richman Properties, Inc. (“MRP”) for the construction and operation of a municipal parking garage (the “Garage”). Under the agreement, the City was responsible to finance the construction while retaining all rights and ownership of the Garage. The City borrowed funds from the Series 2002A and Series 2006A Bonds and a $1 million promissory note to finance the construction of the Garage. MRP was responsible for the completion of the Garage with the use of the funds provided by the City. The Garage started operations in January 2008. The City also executed a lease agreement (the “Lease”) with MRP to operate and maintain the Garage for a term of 50 years. In accordance with the Lease, the City approves all services and fees charged to customers. In addition, the City retains no contractual obligations for the garage until the end of the Lease, at which time the operation and management of the Garage reverts to the City. Installment payments due the City under the Lease are as follows: (i) Repayment of principal on certain amounts used in the construction of the Garage. These amounts owed to the City by MRP are shown as notes receivable in the statement of net position in the amount of $8,581,790. (ii) Guaranteed rent payments equal to $76,000 per year. The present value of these payments is reflected in the statement of net position using a discount rate of 7.25% in the amount of $3,048,534. The City has determined that the agreement meets the requirements of GASB Statement No. 60; Accounting and Financial Reporting for Service Concession Arrangements, effective for financial statements for periods beginning after December 15, 2011. In accordance with GASB Statement No. 60, the City previously adjusted capital assets to include the Garage at fair value of approximately $13 million. Additionally, $11,630,324 was recorded in the government-wide financial statements (statement of net position) as a deferred inflow of resources to be received over the term of the agreement, at net present value. The deferred inflow of resources is recognized annually over the term of the agreement. The notes receivable mainly require semi-annual payments including interest at rates ranging from 3.25% to 5.50% through October 1, 2036. The notes receivable are collateralized by the Garage, a mortgage on certain land owned by MRP and by a personal guarantee from Mark Richman. A portion of the notes receivable (original amount of $700,000) requires quarterly payments, including interest at 4.23%, through April 2019. CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      36 Note 7—Service concession arrangement and note receivable (continued)  Future principal and interest payments due the City under the notes receivable, as of September 30, 2014, are as follows:   Fiscal Year Ending September 30, PrincipalInterestTotal 2015322,026$ 406,225$ 728,251$ 2016333,466 389,783 723,249 2017349,272 372,706 721,978 2018369,359 354,745 724,104 2019367,979 335,802 703,781 2020-20241,763,064 1,437,484 3,200,548 2025-20292,209,040 983,698 3,192,738 2030-20342,071,496 408,369 2,479,865 2035-2037796,088 60,863 856,951 Total8,581,790$ 4,749,675$ 13,331,465$     Note 8—Long‐term liabilities of governmental activities   The following is a summary of changes in long-term liabilities of the City for governmental activities for the year ended September 30, 2014: BalanceBalance September 30,September 30,Due Within 2013AdditionsReductions2014One Year Governmental Activities: Florida Municipal Loan Council Bonds6,620,000$ -$ (200,000)$ 6,420,000$ 615,000$ Taxable Revenue Note, Series 20117,210,000 - (365,000) 6,845,000 400,000 CRA Bond 2006625,930 - (266,185) 359,745 282,491 Notes payable586,502 - (199,686) 386,816 201,769 Capital leases95,579 - (47,032) 48,547 48,547 Compensated absences1,103,913 794,054 (634,031) 1,263,936 379,181 Totals16,241,924$ 794,054$ (1,711,934)$ 15,324,044$ 1,926,988$ Compensated absences attributable to the governmental activities are generally liquidated by the general fund. CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      37 Note 8—Long‐term liabilities of governmental activities (continued)  Florida Municipal Loan Council (FLMC Bonds): The City previously borrowed $2,200,000 from the Florida Municipal Loan Council’s (FMLC) debt issue of $90,210,000 Revenue Bonds, Series 2001A to repay existing borrowings and finance the construction of a multi-purpose activities center. The bonds bear varying interest rates ranging from 3.25% to 5.25% and are secured by non-ad valorem revenues from the City. The City previously borrowed $6,500,000 from the FMLC’s debt issue of $49,775,000 Revenue Bonds, Series 2002A to finance the construction and improvements of a municipal parking garage used for public parking. The bonds bear varying interest rates ranging from 3.25% to 5.50% and are secured by non-ad valorem revenues from the City. Payments received from MRP in conjunction with the notes receivable (Note 6), future Garage revenues, and non-ad valorem revenues of the City are used to repay the bonds as the payments become due. As discussed later, this debt issuance was partially refunded during 2011 with proceeds from the issuance of the Taxable Revenue Note, Series 2011. The City previously borrowed $5,625,000 from the FMLC’s debt issue of $22,365,000 Revenue Bonds, Series 2006 to finance the construction and improvements of a municipal parking garage used for public parking. The bonds bear varying interest rates ranging from 4.00% to 5.00% and are secured by non-ad valorem revenues from the City. Payments received from MRP in conjunction with the notes receivable (Note 6), future Garage revenues, and non-ad valorem revenues are used to repay the bonds as the payments become due. As discussed later, this debt issuance was partially refunded during 2011 with proceeds from the issuance of the Taxable Revenue Notes, Series 2011.  Annual debt service requirements to maturity for the FMLC revenue bonds are as follows: Fiscal Year Ending September 30, PrincipalInterestPrincipalInterestPrincipalInterestTotal 201560,000$ 83,725$ 120,000$ 173,344$ 35,000$ 60,544$ 532,613$ 201660,000 80,575 125,000 166,744 35,000 58,794 526,113 201765,000 77,425 130,000 159,869 40,000 56,919 529,213 201870,000 74,013 135,000 152,719 40,000 54,919 526,651 201975,000 70,338 145,000 145,294 40,000 52,919 528,551 2020-2024420,000 293,775 845,000 605,844 245,000 235,613 2,645,232 2025-2029530,000 180,000 1,085,000 372,306 300,000 178,772 2,646,078 2030-2034390,000 39,500 785,000 81,744 375,000 104,288 1,775,532 2035-2038- - - - 270,000 18,675 288,675 1,670,000$ 899,351$ 3,370,000$ 1,857,864$ 1,380,000$ 821,443$ 9,998,658$ Series 2001ASeries 2002ASeries 2006 CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      38 Note 8—Long‐term liabilities of governmental activities (continued)  Taxable Revenue Note, Series 2011: In August 2011, the City issued a $7,575,000 Taxable Revenue Note, Series 2011, to partially advance refund $1,725,000 and $3,775,000 of the FMLC 2002A and 2006 revenue bonds, respectively, and also to currently refund the then remaining obligation of the Capital Improvement Promissory Note, Series 2009 in the amount of $ 814,488. Funds were deposited into an irrevocable trust with an escrow agent to provide for the scheduled principal and interest installments of the partially advance refunded bonds, including the remaining obligations on the call date of May 1, 2012 and October 1, 2016 for the FMLC 2002A and 2006, respectively. Effective May 2012, the FMLC Series 2002A partially advanced refunded portion was considered deceased. As of September 30, 2014, the outstanding balance of the partially advanced refunded FMLC Series 2006 bonds was $3,816,603. Annual principal and semi-annual interest payments are due through October 2026 at a fixed rate of 4.550%; secured by a pledge of all non-ad valorem revenues of the City. The City executed this refunding transaction to comply with the Securities and Exchange Commission and the Internal Revenue Service; where it was determined that a portion of the FMLC bonds constituted impermissible financing and private activity which affected the governmental status of the Council Bonds. Annual debt service requirements to maturity are as follows: Fiscal Year Ending September 30, PrincipalInterestTotal 2015420,000$ 305,649$ 725,649$ 2016410,000 287,727 697,727 2017435,000 267,477 702,477 2018450,000 247,065 697,065 2019480,000 225,616 705,616 2020-20242,710,000 771,806 3,481,806 2025-20271,940,000 136,904 2,076,904 Total6,845,000$ 2,242,244$ 9,087,244$ Community Redevelopment Agency (CRA) Bond, Series 2006: The City, through its Community Redevelopment Agency (CRA), previously issued $2,730,000 of Taxable Redevelopment Revenue Bonds, Series 2006 (the CRA Bond), for the purpose of acquiring various properties located within the boundaries of the South Miami redevelopment area. The revenue bonds are secured by CRA tax increment financing revenues from the County and the City. The bonds bear interest at 5.99%. Principal and interest payments are due quarterly through February 2016. CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      39 Note 8—Long‐term liabilities of governmental activities (continued)  Annual debt service requirements to maturity for the CRA Bond are as follows: Fiscal Year Ending September 30, PrincipalInterestTotal 2015282,491$ 15,282$ 297,773$ 201677,254 1,216 78,470 Total359,745$ 16,498$ 376,243$ Notes Payable: The City previously entered into promissory note agreements with a financial institution to finance the purchase of law enforcement vehicles and multi-space parking meter stations totaling approximately $576,000. The notes require aggregate monthly payments of $10,202, including interest at 2.355% and 2.5451% per annum. Both notes expire during fiscal year 2016. As of September 30, 2014, the balance outstanding was $170,377. The City previously entered into an agreement with a third party to finance an upgrade to its City Hall management computer software for approximately $172,000. The agreement requires annual payments of $34,414 and bears no interest. As of September 30, 2014, the outstanding balance of this agreement is $34,414. The City previously entered into Inter-Local agreements with Miami Dade County for the purchase of police radios and for a stormwater drainage project. The cost for the radios and project was approximately $247,000 and $270,000, respectively, and are payable in ten years. As of September 30, 2014, the total balance outstanding was $182,025. Annual debt service requirements to maturity for notes payable are as follows: Fiscal Year Ending September 30, PrincipalInterestTotal 2015201,769$ 4,186$ 205,955$ 201693,200 1,768 94,968 201720,000 - 20,000 201820,000 - 20,000 201920,000 20,000 2020-202131,847 - 31,847 Total386,816$ 5,954$ 392,770$ CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      40 Note 8—Long‐term liabilities of governmental activities (continued)  Capital Leases: The City previously entered into a capital lease arrangement for law enforcement vehicles totaling approximately $228,000. The lease expires on July 2015. Interest rate is at 3.18%. The future minimum lease obligation and the net present value of the minimum lease payments as of September 30, 2014 is as follows: Year Ending September 30, 2015 49,515$ Less amounts representing interest(968) Present value of the net minimum lease payments48,547$ Conduit Debt Obligation: The City of South Miami Health Facilities was created to issue Healthcare Facilities Revenue Bonds to provide financial assistance to the City’s private-sector hospitals for the acquisition and construction of facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from revenues derived from the private-sector hospitals. In 2007, the Baptist Health South Florida (BHSF) issued through the City of South Miami Health Facilities Authority, $800,000,000 of its Hospital Revenue Bonds, Series 2007 (2007 Bonds). The proceeds from the bonds were used to refund then outstanding bonds and to acquire, construct, equip and rehabilitate certain health care facilities of BHSF. The 2007 Bonds bear interest at rates ranging from 4.62% to 5.00%, payable semiannually each February 15 and August 15, and mature annually through 2042. As of September 30, 2014, the outstanding principal amount payable was $727,460,000. The City acts solely as a lawful conduit in the issuance of the bonds and is not obligated in any manner for their repayment. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. Note 9—Commitments and contingencies   Grants: Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the City. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the City expects such amounts, if any, to be immaterial. Litigation - General Matters: The City is currently a defendant in several pending claims and other legal proceedings incidental to the operations of the City. The City attorneys are vigorously defending each action. The ultimate liability and likelihood related to these claims is not presently determinable. CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      41 Note 10—Other post‐employment benefits  The City previously implemented GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions (OPEB). This Statement established accounting standards for post-retirement benefits other than pensions. The Statement does not require funding of OPEB expense, but any difference between the annual required contribution (ARC) and the amount funded during the year is required to be recorded in the City’s statement of net position as an increase (or decrease) in the OPEB obligation. Plan Description and Funding Policy: Employees who retire from the City and their dependents are eligible to continue to participate (single employer plan) in the City’s health insurance, dental and vision plans currently offered through the City at the “blended” employee group rate, which is determined annually by the City. The retiree must continue to meet all participation requirements and pay all applicable premiums by the specified due date. As of October 1, 2011, the date of the most recent actuarial evaluation, there are six participating retirees in the group health program. The City provides no funding for any portion of the premiums after retirement. However, the City recognizes that there is an “implicit subsidy” arising as a result of the blended rate premium since retiree health care costs, on average, are higher than active employee healthcare costs. The plan is not accounted for as a trust fund and an irrevocable trust has not been established to fund this plan. The plan does not issue a separate financial report. It is the City’s current policy to fund the plan on a “pay-as-you-go” basis. The General Fund is typically used to liquidate the annual net other post-employment obligations of the City. Annual OPEB Cost and Net OPEB Obligation: The following table shows the components of the City’s annual OPEB cost for the year, the amount contributed, and the change in the net OPEB obligation. Employer Normal Cost 28,002$ Amortization of Unfunded Actuarial Accrued Liability22,560 Interest on Normal Cost and Amortization2,022 Annual Required Contribution52,584 Interest on Net OPEB Obligation 4,660 Adjustment to the ARC (6,737) Annual OPEB Cost 50,507 Estimated Annual Employer Contribution (pay-as-you-go)*(17,642) Change in Net OPEB Obligation32,865 Net OPEB Obligation - Beginning of Year116,493 Net OPEB Obligation - End of Year149,358$ *Reflects a contribution credit for the implied subsidy. CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      42 Note 10—Other post‐employment benefits (continued)  The annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan and the net OPEB obligation for 2014 and the two preceding years were are as follows: Percentage Fiscal YearAnnualof OPEB CostNet OPEB EndedOPEB CostContributedObligation 9/30/201450,507$ 34.9%149,358$ 9/30/2013 47,087 30.2%116,493 9/30/2012 45,218 34.5%83,604 Funding Status and Funding Progress: The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets are increasing or decreasing over time relative to the actuarial accrued liability for benefits. The funded status and an analysis of funding progress as of October 1, 2011, the date of the most recent actuarial valuation, is as follows: Unfunded ActuarialActuarialUAAL as ActuarialAccruedAccruedPercentage Value ofLiability atLiabilityFundedCoveredof Covered ValuationAssetsEntry Age(UAAL)RatioPayrollPayroll Date(a)(b)(b-a)(a/b)(c)((b-a)/c) 10/1/2011-$ 354,421$ 354,421$ 0.0%5,365,146$ 6.6% Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events in the future. Amounts determined regarding the status of the plan and the annual required contributions of the City are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. The required schedule of funding progress, presented as Required Supplementary Information, is designed to provide multi-year trend information that shows whether the actuarial value of the plan assets is increasing or decreasing over time relative to the actuarial liabilities for benefits. CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      43 Note 10—Other post‐employment benefits (continued)  Actuarial Methods and Assumptions: Projections of benefits are based on the substantive plan and include the types of benefits in force at the time of valuation date and the pattern of sharing benefits between the City and the plan members at that point. Actuarial calculations reflect a long-term perspective and employ methods and assumptions that are designed to reduce the short-term volatility in actuarial accrued liabilities and the actuarial value of assets. Significant methods and assumptions used for the valuation are as follows: Measurement dateOctober 1, 2011 Actuarial cost methodEntry age method Amortization methodLevel dollar amount, open basis Remaining amortization period30-years Actuarial assumptions: Investment rate of return4.00% (includes inflation at 2.75% per annum) Healthcare cost trend rates: Select rates Ultimate rate5.00% per annum 9.00% for 2011/12 graded to 8.00% for 2012/13, and 5.00% for 2013/14 through 2015/16 Note 11—Defined benefit pension plan  Plan Description: The City sponsors and maintains the General Employees and Police Officers Pension Plan (the Plan), a single- employer defined benefit pension plan established by Ordinance No. 528 dated December 7, 1965, effective October 1, 1965. The Plan covers police officers and other full-time general employees of the City who are eligible to participate in the Plan and who fulfill the prescribed eligibility requirements. The most recent amendment to the Plan occurred on November 1, 2011, which became effective on October 1, 2011. City Ordinance No. 33-11-2106 amended the Plan to reflect changes in eligibility requirements, definition of final average compensation, normal retirement eligibility, benefit accrual percentages and supplemental benefit for General Employees. The definition of final average compensation has also been updated for most Police Officers. A more detailed description of the Plan and its provisions appears in the Ordinances constituting the Plan and in the summary plan description. The City has issued stand-alone financial statements for the Plan, which may be obtained from the City’s Finance Department. CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      44 Note 11—Defined benefit pension plan (continued)  Summary of Significant Accounting Policies: The Plan for both general and police employees, utilizes the accrual basis of accounting. Plan member contributions are recognized in the period in which the contributions are due. Employer contributions to the Plan are recognized when due and the employer has made a formal commitment to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of the Plan. Funding Policy: The City’s annual required contribution is determined annually by an independent third party actuary and is, together with earnings and employee contributions, sufficient to fund the benefits described below. For the year ended September 30, 2014, the aggregate contribution requirement for the City and Plan participants was determined at 24.7% (including 10.5% for participants) and 33.3% (including 15% for participants) for general employees and police officers, respectively. In accordance with a City ordinance, should the aggregate participants and City’s annual contribution be actuarially determined to exceed 14% and 15%, for general employees and police officers, respectively, both participants and the City shall share equally in such excess percentage. The Police Officers Pension Plan also receives contributions from the State of Florida. During the fiscal year ended September 30, 2014, the City received $91,879 from the State, which was generated from the insurance premium tax as part of the required funding for the Police Pension Plan, and recorded revenues and expenditures in the General Fund, as appropriate. The General Fund is typically used to liquidate the annual net pension obligations of the City. Method Used to Value Investments: Investments in common stocks and international equity, mutual funds, corporate obligations and U.S. government securities are valued at quoted fair market prices determined by last reported sales price. Net appreciation or depreciation in fair value of investments, realized and unrealized gains and losses are determined on the basis of specific cost. Purchases and sales of securities are recorded on a trade-date basis. Eligibility: General Employees: Eligibility requirements: The Plan is only available to regular full-time employees who were employed prior to October 1, 2011 and had completed six months of credited service and attainment of age 20. All general employees who were participating in the Plan as of September 30, 2011 had the option to elect to remain in the Plan or participate in a newly created defined contribution plan under the provisions of Section 457(b) (the “457(b) Plan”). For those participants who elected to discontinue their participation, the Plan refunded their portion of contributions or amounts were rolled over to the 457(b) Plan as additional employee contributions. Police Officers: Full-time police officers are eligible to participate in the plan as of date of employment. CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      45 Note 11—Defined benefit pension plan (continued)  As of September 30, 2014, the Plan membership consisted of: GeneralPolice EmployeesOfficers Active Plan members4244 Terminated vested45 Receiving benefits2217 6866 Benefits: Normal retirement: General Employees: Attainment of age 55 and completion of 10 years of credited services for benefits accrued at September 30, 2011. Attainment of age 60 and completion of 10 years of credited services for benefits accrued after September 30, 2011, including increases in the accrued benefit as of September 30, 2011 due to increases in the final average compensation. These general employees are entitled to retirement benefits ranging from 2.50% to 2.75% of their final monthly compensation (FMC) based on years of credited service.   Police Officers: Attainment of age 60 and completion of 10 years of credited services or completion of 25 years of credited services regardless of age. These police officers are entitled to retirement benefits ranging from 2.00% to 3.00% of the FMC based on years of credited service. A cost-of-living supplemental benefit based upon the consumer price index is provided upon retirement. The annual increase is limited to 3.00%. For general employees, accrued benefits from October 1, 2011 and thereafter are not subject to the cost-of-living supplemental benefit adjustment. Final average compensation is 1/36th of the final 36 consecutive months of compensation. For police officers, not less than 1/5th of the highest 5 years out of the last 10 years of compensation. Compensation shall mean regular wages and salaries, excluding bonuses, vacation, sick leave and other additional compensation. Effective October 1, 2011, final average compensation for general employees is 1/60th of the final 60 consecutive months of basic compensation, provided is not less than the final average compensation at September 30, 2011, based on the definition above. Basic compensation shall mean base wages and salaries, excluding commissions, overtime pay, bonuses and any other forms of additional compensation earned outside of base wages. Effective October 1, 2011, final average compensation for members covered under the police officers and sergeants collective bargaining agreements is the best of 5 years of basic compensation, provided is not less than the final average compensation as of September 30, 2011 based on the definition above. Basic compensation shall mean base wages and salaries, including up to 300 hours of overtime in a fiscal year and excluding payments for accrued unused sick or annual leave, extra duty or special detail work, shift differential, assignment pay, bonuses and other forms of additional compensation earned outside of base wages. Early retirement: Police officers may elect early retirement at age 50 after 15 years of credited service. Benefits shall be based upon FMC and credited service as of early retirement date, reduced by 3% for each year that the benefit commencement date precedes normal retirement. CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      46 Note 11—Defined benefit pension plan (continued)  Disability retirement: Members who become totally and permanently disabled for a six month period while actively employed are eligible. Benefits for disability retirement will be based upon the FMC and credited service as of the date of disability, actuarially reduced for early retirement. Pre-retirement death: Death benefits are payable on behalf of members who die prior to retirement. A surviving beneficiary will receive the member's accumulated employee contributions. Vesting: Benefits are fully vested after 10 years of continuous service. Actuarial Assumptions: The actuarial assumptions, as of the valuation dated October 1, 2012, and effective for the current fiscal year are as follows: GeneralPolice EmployeesOfficers Actuarial valuation date10/1/201210/1/2012 Actuarial cost methodEntry age normalEntry age normal Amortization methodLevel dollar Level percent closedof pay, closed Remaining amortization period21 years23 years Asset valuation method5-year smoothed5-year smoothed marketmarket Actuarial assumptions: Investment rate of return7.375%7.375% Projected salary increase3.75% - 5.25%3.75% - 5.25% Includes inflation at4.0%4.0% Cost-of-living adjustment3.0%3.0% CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      47 Note 11—Defined benefit pension plan (continued)  The City’s annual pension cost and net pension obligation (asset) for the current year were as follows: GeneralPolice EmployeesOfficersTotal Annual required contribution (ARC)283,532$ 578,990$ 862,522$ Interest on net pension obligation (asset)(2,809) (1,496) (4,305) Adjustment to ARC3,138 1,733 4,871 Annual pension cost283,861 579,227 863,088 Contributions made(257,857) (582,561) (840,418) Increase (decrease) in net pension obligation (asset)26,004 (3,334) 22,670 Net pension asset, beginning of year(38,088) (20,289) (58,377) Net pension asset, end of year(12,084)$ (23,623)$ (35,707)$ Trend Information: Trend information indicates the progress made in accumulating sufficient assets to pay benefits when due. An analysis of funding progress for the year ended September 30, 2014 and the two previous years is as follows: Annual PensionPercentage ofNet Pension Years ending September 30,Cost (APC)APC ContributedAsset General Employees: 2014283,861$ 91%(12,084)$ 2013293,761 100%(38,088) 2012415,245 100%(38,529) Police Officers: 2014579,227$ 101%(23,623)$ 2013567,104 100%(20,289) 2012607,361 100%(20,523) CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      48 Note 11—Defined benefit pension plan (continued)  Schedule of Funding Progress: The schedule of funding progress, presented as required supplementary information (RSI) immediately 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. The funded status of the Plan as of October 1, 2013, the most recent valuation date, is as follows: Unfunded ActuarialActuarialUAAL as ActuarialAccruedAccruedPercentage Value ofLiability atLiabilityFundedCoveredof Covered AssetsEntry Age(UAAL)RatioPayrollPayroll (a)(b)(b-a)(a/b)(c)((b-a)/c) General Employees11,837,447$ 12,708,645$ 871,198$ 93.1%1,968,974$ 44.2% Police Officers15,134,992$ 18,457,217$ 3,322,225$ 82.0%2,789,742$ 119.1% Note 12—Defined contribution plans   Police Officers Retirement Trust Fund - Section 185 Plan: The City sponsors and maintains the Police Officers Retirement Trust Fund - Section 185 Plan (the “Fund”), which accounts for the financial activity of the separate plan for police officers established under the provisions of Chapter 185 of the Florida Statutes. The City and participating members do not contribute to the Fund. A Board of Trustees administers this account, which is made up of representatives of the police officers and the City. Statutory authority vests with the Board of Trustees with autonomy in the administration and control over the Fund. The City has issued stand-alone financial statements for the Fund, which may be obtained from the City’s Finance Department. 401(a) Money Purchase Plans: The City is a single employer that contributes to three (3) defined contribution pension plans based upon employee classification created in accordance with the Internal Revenue Code Section 401(a) (the “401(a) Plans”). The 401(a) Plans cover certain upper level members of management who have elected to participate. The City Commission executed a resolution for the City to make contributions of up to 7% of participating members’ earnings into the plan and 14% for one individual in accordance with their employment contract. During the year ended September 30, 2014, City contributions on behalf of members of management were approximately $66,100. In addition to the previously existing 401(a) Plans, the City also makes matching contributions on behalf of employees who are participating in the newly established 457(b) Plan under the provisions of Section 401(a). Those contributions during the year ended September 30, 2014 were approximately $41,000. The 401(a) Plan assets are administered by ICMA Retirement Corporation. The City does not exercise any control nor have fiduciary responsibility over the 401(a) Plan assets. Therefore, the assets, liabilities and transactions are not included in the City’s financial statements. CITY OF SOUTH MIAMI, FLORIDA  NOTES TO FINANCIAL STATEMENTS      SEPTEMBER 30, 2014      49 Note 12—Defined contribution plans (continued)  Employees 457(b) Deferred Compensation Plans: The City previously established a deferred compensation plan under the provisions of the Internal Revenue Code Section 457(b) to provide additional benefits at retirement to those employees who elected not to participate in the City’s pension plan. Under this plan, no contributions are required by the City on behalf of employees. The City provided additional compensation to several employees totaling approximately $14,400. This additional compensation was credited into this plan. During the current year and in accordance with Ordinance No. 33-11-2106, a new defined contribution plan under the provisions of the Internal Revenue Code Section 457(b) was created. The 457(b) Plan was established to provide benefits at retirement to general employees and police officers who were hired on or after October 1, 2011 and other employees who are eligible but have elected not to participate in the City’s defined benefit plan. Employee contributions to this plan are matched dollar-for-dollar by the City in amounts ranging from 3% to 7%, based upon employee classification. Required City matching contributions in the 457(b) Plan are credited into the newly created defined contribution plan under the provisions of the Internal Revenue Code Section 401(a). Under the provisions of GASB Statement No. 32, Accounting and Financial Reporting for IRS Code Section 457 Deferred Compensation Plans, all assets and liabilities of the 457(b) plans are held in trust for the exclusive benefit of the participants. Accordingly, the assets and liabilities of the 457(b) plans are not included in the City’s financial statements. The plan assets are administered by ICMA Retirement Corporation. The City does not exercise any control nor have fiduciary responsibility over the plan assets. Note 13—Risk management  The City is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets, errors and omissions and natural disasters for which the City carries commercial insurance. The City has not had a significant reduction in insurance coverage from coverage in the prior year by major categories of risk, and settled claims have not exceeded the City's retention and excess coverage in force for each of the past three years. The City currently has pending litigation with Orlando Martinez De Castro, the City’s former Chief of Police, for which a liability has not been recorded. A trial judge has entered a partial summary judgment finding that the City breached the contract. However, the City still has its defenses to be tried and the City disagrees with the judge’s findings of fact and conclusions of law. The City will be conducting an executive meeting within 30 days to discuss the matter. It will be the City Attorney’s recommendation that the City appeal any final judgment when it is entered based on the judge's erroneous findings of fact and erroneous conclusions of law. While the City does not believe that the plaintiff is entitled to any money or any attorney fees, if the appellate court disagrees with the City's legal assessment of liability and damages there is a potential liability of approximately five hundred thousand dollars ($500,000) including attorney fees and prejudgment interest. REQUIRED SUPPLEMENTARY INFORMATION CITY OF SOUTH MIAMI, FLORIDA  BUDGETARY COMPARISON SCHEDULE – GENERAL FUND (BUDGETARY BASIS)    YEAR ENDED SEPTEMBER 30, 2014      50 Variance with Final Budget ‐ Positive OriginalFinalActual(Negative) Revenues: Taxes: Ad valorem5,972,221$ 5,972,221$ 5,380,487$ (591,734)$ Utility taxes1,925,975 1,925,975 2,159,537 233,562 Business taxes645,000 645,000 612,865 (32,135) Franchise fees1,580,500 1,580,500 1,641,415 60,915 Licenses and permits550,250 550,250 1,095,232 544,982 Intergovernmental1,454,918 1,454,918 1,578,176 123,258 Charges for services2,950,500 2,950,500 2,821,013 (129,487) Fines and forfeitures809,000 809,000 846,219 37,219 Rents and royalties254,496 254,496 265,401 10,905 Interest Income88,604 88,604 86,505 (2,099) Miscellaneous266,586 266,586 318,436 51,850 Total Revenues16,498,050 16,498,050 16,805,286 307,236 Expenditures: General government: City commission92,82992,82985,5917,238 City manager1,883,8501,823,3501,589,310234,040 City clerk386,012401,012416,940(15,928) Legal436,000436,000314,139121,861 Finance1,340,2791,369,2791,277,80391,476 Total general government4,138,970 4,122,470 3,683,783 438,687 Public safety: Police5,948,3285,964,8285,436,727528,101 Building zoning and community development1,194,4381,194,4381,024,163170,275 Total public safety7,142,766 7,159,266 6,460,890 698,376 Public works3,354,0603,354,0603,023,027 331,033 Parks and recreation1,812,390 1,838,309 1,590,736 247,573 Debt Service: Principal199,685 199,685 219,682 (19,997) Interest and fiscal charges4,182 4,182 2,841 1,341 Total Expenditures16,652,053 16,677,972 14,980,959 1,697,013 Excess of Revenues Over Expenditures (154,003) (179,922) 1,824,327 2,004,249 Other Financing Uses Transfers in358,173 358,173 308,173 (50,000) Transfers out- - (700,000) (700,000) Total other financing uses358,173 358,173 (391,827) (750,000) Net Change in Fund Balance204,170 178,251 1,432,500 1,254,249 Fund Balances - Beginning 9,336,665 9,336,665 9,336,665 - Fund Balances - Ending 9,540,835$ 9,514,916$ 10,769,165$ 1,254,249$ Budgeted Amounts CITY OF SOUTH MIAMI, FLORIDA  BUDGETARY COMPARISON SCHEDULE – GENERAL FUND (BUDGETARY BASIS)  (CONTINUED)    YEAR ENDED SEPTEMBER 30, 2014      51 EXPLANATION OF DIFFERENCES BETWEEN CHANGE IN FUND BALANCE - BUDGET ACTUAL AND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - GENERAL FUND Net change in fund balance - budget to actual - General Fund1,432,500$ Amounts reported for budget to actual are different because: Revenues and expenditures in certain funds are reported in those funds for budgetary purposes; but in the General Fund for the purpose of the Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Funds: Net change in fund balance - Emergency Reserve Fund (1)13,683 General fund net change in fund balance per the Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds1,446,183$ (1) See budget to actual comparison schedule on page 52 CITY OF SOUTH MIAMI, FLORIDA  BUDGETARY COMPARISON SCHEDULE – EMERGENCY RESERVE FUND      YEAR ENDED SEPTEMBER 30, 2014      52 Variance with Final Budget ‐ Positive OriginalFinalActual(Negative) Revenues Interest Income18,000$ 18,000$ 13,683$ (4,317)$ Total Revenues18,000 18,000 13,683 (4,317) Expenditures- - - - Net Change in Fund Balance18,000$ 18,000$ 13,683$ (4,317)$ Budgeted Amounts CITY OF SOUTH MIAMI, FLORIDA  BUDGETARY COMPARISON SCHEDULE – GRANTS FUND  SPECIAL REVENUE FUND    YEAR ENDED SEPTEMBER 30, 2014      53 Variance with Final Budget ‐ Positive OriginalFinalActual(Negative) Revenues: Intergovernmental2,665,453$ 2,665,453$ 1,776,393$ (889,060)$ Interest Income- - 4,419 4,419 Total Revenues2,665,453 2,665,453 1,780,812 (884,641) Expenditures: Current: Public safety7,9737,9738,858 (885) Public works80,84580,84517,245 63,600 Capital outlay2,570,1932,570,1931,738,443 831,750 Total Expenditures2,659,011 2,659,011 1,764,546 894,465 Deficiency of Revenues Over Expenditures 6,442 6,442 16,266 9,824 Net Change in Fund Balance(26,731)$ (26,731)$ 16,266$ 42,997$ Budgeted Amounts CITY OF SOUTH MIAMI, FLORIDA  REQUIRED SUPPLEMENTARY INFORMATION  NOTES TO BUDGETARY COMPARISON SCHEDULE    SEPTEMBER 30, 2014      54 Note 1—Budgets and budgetary accounting  Annual appropriated budgets are adopted on a basis of accounting other than GAAP. 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 governmental funds. All governmental funds adopted a budget, with the exception of the Grants Fund. The Emergency Reserve Fund is budgeted as part of the General Fund. The following procedures are used by the City in establishing the budgetary data reflected in the financial statements. a) Prior to August 1, the City Manager submits to the City Commission a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. b) Public hearings are conducted to obtain taxpayer comments. c) Prior to October 1, the budget is legally enacted through the passage of an ordinance. d) At the request of the City Manager and within the last three months of the budget year, the City Commission may transfer any unencumbered balance or portion thereof from one department to another. All budget fund transfers require a resolution from the City Commission. Pursuant to the City's Charter, expenditures may not legally exceed appropriations at the departmental level. e) Formal budgetary integration is employed as a management control device during the year. f) In instances where budget appropriations and estimated revenues have been revised during the year, budget data presented in the financial statements and schedules represent final authorized amounts. Therefore, the department level is the legal level of budgetary control. Budgeted amounts are as originally adopted or as amended. Revisions that alter the total expenditures of any department within a fund must be approved by the City Commission. Actual expenditures and transfers out may not exceed budget appropriations at the departmental level. Appropriations that are neither expended, encumbered, nor specifically designated to be carried over, lapse at the end of the fiscal year. CI T Y  OF  SO U T H  MI A M I ,  FL O R I D A   RE Q U I R E D  SU P P L E M E N T A R Y  IN F O R M A T I O N   SC H E D U L E  OF  FU N D I N G  PR O G R E S S    GE N E R A L  EM P L O Y E E S  PE N S I O N  TR U S T  FU N D    Fo r  th e  La s t  Si x  Fi s c a l  Ye a r s      55 Un f u n d e d Ac t u a r i a l A c t u a r i a l U A A L  as Ac t u a r i a l A c c r u e d A c c r u e d P e r c e n t a g e Va l u e  of L i a b i l i t y  at L i a b i l i t y F u n d e d C o v e r e d o f  Covered Va l u a t i o n A s s e t s E n t r y  Ag e ( U A A L ) R a t i o P a y r o l l P a y r o l l Da t e ( a ) ( b ) ( b ‐a) ( a / b ) ( c ) ( ( b ‐a)/c) Oc t o b e r 1 , 2 0 0 8 9 , 2 3 7 , 6 4 1 $ 1 1 , 3 3 1 , 2 8 8 $ 2 , 0 9 3 , 6 4 7 $ 8 1 . 5 % 3 , 3 4 6 , 5 3 4 $ 6 2 . 6 % Oc t o b e r 1 , 2 0 0 9 9 , 9 5 7 , 6 5 9 $ 1 3 , 7 2 7 , 7 5 0 $ 3 , 7 7 0 , 0 9 1 $ 7 2 . 5 % 4 , 4 3 6 , 4 4 4 $ 8 5 . 0 % Oc t o b e r 1 , 2 0 1 0 1 0 , 8 5 2 , 1 3 7 $ 1 5 , 5 2 1 , 9 9 8 $ 4 , 6 6 9 , 8 6 1 $ 6 9 . 9 % 3 , 7 6 3 , 3 5 0 $ 1 2 4 . 1 % Oc t o b e r 1 , 2 0 1 1 1 1 , 3 3 0 , 1 5 1 $ 1 3 , 4 7 7 , 7 2 2 $ 2 , 1 4 7 , 5 7 1 $ 8 4 . 1 % 2 , 3 7 3 , 1 0 0 $ 9 0 . 5 % Oc t o b e r 1 , 2 0 1 2 1 1 , 1 3 2 , 1 5 2 $ 1 2 , 5 3 4 , 2 9 8 $ 1 , 4 0 2 , 1 4 6 $ 8 8 . 8 % 2 , 0 0 3 , 8 5 5 $ 7 0 . 0 % O c t o b e r 1 , 2 0 1 3 * 1 1 , 8 3 7 , 4 4 7 $ 1 2 , 7 0 8 , 6 4 5 $ 8 7 1 , 1 9 8 $ 9 3 . 1 % 1 , 9 6 8 , 9 7 4 $ 4 4 . 2 % An n u a l Re q u i r e d Ye a r  En d e d C o n t r i b u t i o n P e r c e n t a g e Se p t e m b e r  30 , ( A R C ) C o n t r i b u t e d 20 0 9 3 8 9 , 5 1 2 $ 1 0 0 % 20 1 0 6 9 4 , 7 0 2 $ 1 0 0 % 20 1 1 6 2 5 , 0 3 8 $ 1 0 0 % 20 1 2 4 1 8 , 8 3 3 $ 1 0 0 % 20 1 3 2 9 3 , 7 6 1 $ 1 0 0 % 20 1 4 2 8 3 , 5 3 2 $ 9 1 % * M o s t r e c e n t v a l u a t i o n a v a i l a b l e CI T Y  OF  SO U T H  MI A M I ,  FL O R I D A   RE Q U I R E D  SU P P L E M E N T A R Y  IN F O R M A T I O N   SC H E D U L E  OF  FU N D I N G  PR O G R E S S    PO L I C E  OF F I C E R S  PE N S I O N  TR U S T  FU N D    Fo r  th e  La s t  Si x  Fi s c a l  Ye a r s      56 Un f u n d e d Ac t u a r i a l A c t u a r i a l U A A L  as Ac t u a r i a l A c c r u e d A c c r u e d P e r c e n t a g e Va l u e  of L i a b i l i t y  at L i a b i l i t y F u n d e d C o v e r e d o f  Covered Va l u a t i o n A s s e t s E n t r y  Ag e ( U A A L ) R a t i o P a y r o l l P a y r o l l Da t e ( a ) ( b ) ( b ‐a) ( a / b ) ( c ) ( ( b ‐a)/c) Oc t o b e r 1 , 2 0 0 8 1 1 , 0 4 7 , 9 5 6 $ 1 4 , 5 2 4 , 1 2 2 $ 3 , 4 7 6 , 1 6 6 $ 7 6 . 1 % 2 , 8 5 7 , 5 5 5 $ 1 2 1 . 6 % Oc t o b e r 1 , 2 0 0 9 1 1 , 6 4 8 , 3 7 5 $ 1 6 , 0 5 0 , 9 7 3 $ 4 , 4 0 2 , 5 9 8 $ 7 2 . 6 % 3 , 1 8 3 , 3 1 8 $ 1 3 8 . 3 % Oc t o b e r 1 , 2 0 1 0 1 2 , 4 4 4 , 6 0 7 $ 1 8 , 3 3 0 , 8 7 4 $ 5 , 8 8 6 , 2 6 7 $ 6 7 . 9 % 3 , 0 6 7 , 5 5 8 $ 1 9 1 . 9 % Oc t o b e r 1 , 2 0 1 1 1 3 , 1 0 5 , 5 6 0 $ 1 7 , 8 7 2 , 6 1 9 $ 4 , 7 6 7 , 0 5 9 $ 7 3 . 3 % 3 , 0 5 0 , 0 5 2 $ 1 5 6 . 3 % Oc t o b e r 1 , 2 0 1 2 1 3 , 7 6 8 , 6 9 2 $ 1 7 , 6 8 4 , 1 0 0 $ 3 , 9 1 5 , 4 0 8 $ 7 7 . 9 % 2 , 8 5 7 , 8 4 6 $ 1 3 7 . 0 % O c t o b e r 1 , 2 0 1 3 * 1 5 , 1 3 4 , 9 9 2 $ 1 8 , 4 5 7 , 2 1 7 $ 3 , 3 2 2 , 2 2 5 $ 8 2 . 0 % 2 , 7 8 9 , 7 4 2 $ 1 1 9 . 1 % An n u a l Re q u i r e d Ye a r  En d e d C o n t r i b u t i o n P e r c e n t a g e Se p t e m b e r  30 , ( A R C ) C o n t r i b u t e d 20 0 9 4 5 4 , 2 1 9 $ * * 1 0 0 % 20 1 0 5 6 2 , 5 4 4 $ 1 0 0 % 20 1 1 6 4 1 , 5 4 9 $ 1 0 0 % 20 1 2 6 0 7 , 1 4 2 $ 1 0 0 % 20 1 3 5 6 7 , 1 0 4 $ 1 0 0 % 20 1 4 5 7 8 , 9 9 0 $ 1 0 1 % * M o s t r e c e n t v a l u a t i o n a v a i l a b l e ** T h e C i t y c o n t r i b u t i o n a m o u n t f o r P o l i c e O f f i c e r s r e f l e c t s a n a d j us t m e n t i n t h e a m o u n t o f $ 3 , 2 8 5 d u e t o t h e i n t e r e s t c h a r g e for a late payment due to a de l a y i n r e c e i p t o f s t a t e f u n d s . CI T Y  OF  SO U T H  MI A M I ,  FL O R I D A   RE Q U I R E D  SU P P L E M E N T A R Y  IN F O R M A T I O N   SC H E D U L E  OF  FU N D I N G  PR O G R E S S    PA Y ‐AS ‐YO U ‐GO  AP P R O A C H   OT H E R  PO S T ‐EM P L O Y M E N T  HE A L T H  CA R E  BE N E F I T S    Fo r  th e  La s t  Si x  Fi s c a l  Ye a r s      57 Un f u n d e d Ac t u a r i a l A c t u a r i a l U A A L  as Ac t u a r i a l A c c r u e d A c c r u e d P e r c e n t a g e Va l u e  of L i a b i l i t y  at L i a b i l i t y F u n d e d C o v e r e d o f  Covered Va l u a t i o n A s s e t s E n t r y  Ag e ( U A A L ) R a t i o P a y r o l l P a y r o l l Da t e ( a ) ( b ) ( b ‐a) ( a / b ) ( c ) ( ( b ‐a)/c) Oc t o b e r 1 , 2 0 1 0 * - $ 1 9 1 , 0 0 0 $ 1 9 1 , 0 0 0 $ 0 . 0 % 8 , 4 4 7 , 0 0 0 $ 2 . 3 % Oc t o b e r 1 , 2 0 1 1 - $ 3 5 4 , 4 2 1 $ 3 5 4 , 4 2 1 $ 0 . 0 % 5 , 3 6 5 , 1 4 6 $ 6 . 6 % * Y e a r o f G A S B S t a t e m e n t N o . 4 5 i m p l e m e n t a t i on . N o p r i o r i n f o r m a t i o n i s a v a i l a b l e . OTHER FINANCIAL INFORMATION NONMAJOR GOVERNMENTAL FUNDS  SPECIAL REVENUE FUNDS  Stormwater Drain Trust Fund - This fund accounts mainly for the revenues associated with an inter-local agreement with the Miami-Dade County, Water and Sewer Department related to stormwater charges. The revenues are used for the management and maintenance of existing catch basins, stormwater drains and canal system, and future construction of the City’s system. Local Option Gas Tax - This fund is used to account for the revenues and expenditures associated with the State of Florida's Local Option Gas Tax. Peoples Transportation Tax Fund - This fund is used to account for the revenues and expenditures associated with the Miami-Dade County Peoples Transportation Tax. State Forfeiture Fund - To account for proceeds obtained through the sale of confiscated and unclaimed property turned over to the City through court judgments. Proceeds are to be used solely for crime fighting purposes. Tree Trust Fund - This fund was created under the City’s Land Development Code Section 20-4.5 with the purpose to acquire, protect, and to plant trees on public property. Hometown District Improvement Trust Fund - This fund accounts for monies received that are to be used for improvements to parking facilities, infrastructure to increase parking capacity, and the installation of metering devices. Federal Forfeiture Fund – To account for proceeds obtained through the sale of confiscated and unclaimed property turned over to the City through court judgments. Proceeds are to be used solely for crime fighting purposes. Community Redevelopment Agency Fund – This fund is used to account for the revenues and expenditures associated with the South Miami Community Redevelopment Agency. CAPITAL PROJECTS FUND  Capital Improvements Program Fund - is used to account for multi-year expenditures of major capital projects and expenditures for all general government programs. Revenue within this fund is primarily received as a transfer of funds from the general fund based upon the long-term capital budget needs of the various City departments and the recreation programs. Revenues may also include transfers from other financial sources and investment interest. DEBT SERVICE FUND  Debt Service Fund - This fund is used to account for the accumulation of resources to pay for the payment of the principal and interest of the City’s bonds and certain notes payable. CI T Y  OF  SO U T H  MI A M I ,  FL O R I D A   CO M B I N I N G  BA L A N C E  SH E E T   NO N M A J O R  GO V E R N M E N T A L  FU N D S    SE P T E M B E R  30 ,  20 1 4      58 Ho m e t o w n T o t a l St o r m w a t e r L o c a l P e o p l e s T r e e D i s t r i c t C o m m u n i t y C a p i t a l D e b t N o n m a j o r Dr a i n O p t i o n T r a n s p o r t a t i o n S t a t e T r u s t I m p r o v e m e n t F e d e ra l R e d e v e l o p m e n t I m p r o v e m e n t s S e r v i c e G o v e r n m e n t a l Tr u s t G a s  Ta x T a x F o r f e i t u r e F u n d T r u s t F o r f e i t u r e A g e n c y  Fu n d P r o g r a m  FundFundFunds As s e t s Ca s h a n d c a s h e q u i v a l e n t s 9 1 , 5 1 4 $ 3 2 5 , 1 2 9 $ 1 , 8 2 1 , 2 9 6 $ 7 6 , 5 0 9 $ - $ - $ 2 , 0 0 0 , 7 0 0 $ 3 6 9 , 1 3 6 $ - $ 4 5 0 , 8 3 8 $ 5,135,122$ Re c e i v a b l e s 8 1 , 9 2 1 - 7 3 , 6 2 8 - - - - - - - 155,549 Du e f r o m o t h e r f u n d s 1 4 6 , 3 2 0 - 9 6 , 9 5 2 - 4 , 5 2 8 1 7 , 2 5 0 - 3 6 5 9 5 , 1 2 5 - 860,211 Pr e p a i d e x p e n d i t u r e s - - - - - - - 4 , 1 8 8 - 6 6 , 8 2 5 71,013 To t a l A s s e t s 31 9 , 7 5 5 $ 3 2 5 , 1 2 9 $ 1 , 9 9 1 , 8 7 6 $ 7 6 , 5 0 9 $ 4 , 5 2 8 $ 1 7 , 2 5 0 $ 2 , 0 0 0 , 7 0 0 $ 3 7 3 , 3 6 0 $ 5 9 5 , 1 2 5 $ 5 1 7 , 6 6 3 $ 6,221,895$ Li a b i l i t i e s a n d F u n d B a l a n c e s Li a b i l i t i e s Ac c o u n t s p a y a b l e 2 , 9 7 3 $ - $ 2 2 , 6 0 1 $ - $ - $ - $ 4 7 7 $ 2 5 , 4 2 6 $ 2 3 9 , 8 1 1 $ - $ 291,288$ Ac c r u e d l i a b i l i t i e s 2 , 0 7 6 - - - - - - 3 , 3 0 9 - - 5,385 Du e t o o t h e r f u n d s - 4 8 , 1 3 0 - - - - - 7 5 , 4 6 7 - - 123,597 Un e a r n e d R e v e n u e - - - - - - - - - - - Ot h e r l i a b i l i t i e s - - - - - - - 1 , 4 1 6 - - 1,416 To t a l L i a b i l i t i e s 5, 0 4 9 4 8 , 1 3 0 2 2 , 6 0 1 - - - 4 7 7 1 0 5 , 6 1 8 2 3 9 , 8 1 1 - 421,686 Fu n d B a l a n c e s No n s p e n d a b l e : Pr e p a i d e x p e n d i t u r e s - - - - - - - 4 , 1 8 8 - 6 6 , 8 2 5 71,013 Re s t r i c t e d f o r : De b t s e r v i c e - - - - - - - - - 4 5 0 , 8 3 8 450,838 Co m m u n i t y s e r v i c e s - - - - - - - 2 6 3 , 5 5 4 - - 263,554 Gr a n t p r o j e c t s - - - - - - - - - - - St o r m w a t e r m a n a g e m e n t 3 1 4 , 7 0 6 - - - - - - - - - 314,706 Tr a n s p o r t a t i o n p r o j e c t s - 2 7 6 , 9 9 9 1 , 9 6 9 , 2 7 5 - - - - - - - 2,246,274 La w e n f o r c e m e n t - - - 7 6 , 5 0 9 - - 2 , 0 0 0 , 2 2 3 - - 2,076,732 Co m m i t t e d t o : Tr e e p r o j e c t s - - - - 4 , 5 2 8 - - - - - 4,528 Pa r k i n g m a n a g e m e n t - - - - - 1 7 , 2 5 0 - - - - 17,250 As s i g n e d t o : Ca p i t a l p r o j e c t s - - - - - - - - 3 5 5 , 3 1 4 - 355,314 To t a l F u n d B a l a n c e s 31 4 , 7 0 6 2 7 6 , 9 9 9 1 , 9 6 9 , 2 7 5 7 6 , 5 0 9 4 , 5 2 8 1 7 , 2 5 0 2 , 0 0 0 , 2 2 3 2 6 7 , 7 4 2 3 5 5 , 3 1 4 5 1 7 , 6 6 3 5,800,209 Total Li abi l i t i es a n d Fun d Ba l a n c e s 31 9 , 7 5 5 $ 3 2 5 , 1 2 9 $ 1 , 9 9 1 , 8 7 6 $ 7 6 , 5 0 9 $ 4 , 5 2 8 $ 1 7 , 2 5 0 $ 2 , 0 0 0 , 7 0 0 $ 3 7 3 , 3 6 0 $ 5 9 5 , 1 2 5 $ 5 1 7 , 6 6 3 $ 6,221,895$ Sp e c i a l  Re v e n u e  Fu n d s CI T Y  OF  SO U T H  MI A M I ,  FL O R I D A   CO M B I N I N G  ST A T E M E N T  OF  RE V E N U E S ,  EX P E N D I T U R E S ,  AN D  CH A N G E S  IN  FU N D  BA L A N C E S   NO N M A J O R  GO V E R N M E N T A L  FU N D S    YE A R  EN D E D  SE P T E M B E R  30 ,  20 1 4      59 Ho m e t o w n T o t a l St o r m w a t e r L o c a l P e o p l e s T r e e D i s t r i c t F e d e r a l C o m m u n i t y   Ca p i t a l D e b t N o n m a j o r Dr a i n O p t i o n T r a n s p o r t a t i o n S t a t e T r u s t I m p r o v e m e n t F o r f ei t u r e R e d e v e l o p m e n t I m p r o v e m e n t s S e r v i c e G o v e r n m e n t a l Tr u s t G a s  Ta x T a x F o r f e i t u r e F u n d T r u s t F u n d A g e n c y  Fu n d P r o g r a m  FundFundFunds Re v e n u e s Ta x e s : Ad v a l o r e m - $ - $ - $ - $ - $ - $ - $ 1 , 0 2 5 , 0 8 4 $ - $ - $ 1,025,084$ Ut i l i t y t a x e s 7 , 4 4 3 - - - - - - - - - 7,443 In t e r g o v e r n m e n t a l 4 1 0 , 2 2 7 7 6 , 8 7 3 4 6 7 , 5 9 8 - - - - - - - 954,698 Li c e n s e s a n d P e r m i t s - - - - 2 , 5 0 0 - - - - - 2,500 Fi n e s a n d f o r f e i t u r e s - - - - - - 2 , 9 1 4 - - - 2,914 Ch a r g e s f o r s e r v i c e s - - - - - 3 6 , 0 0 0 - - - - 36,000 Re n t s a n d r o y a l t i e s - - - - - - - 3 3 , 2 2 7 - 7 2 7 , 8 4 5 761,072 In t e r e s t 1 , 3 2 4 2 , 5 0 3 1 3 , 3 6 8 6 1 0 - - 1 6 , 0 9 7 4 , 8 8 1 - 1 , 6 5 0 40,433 Mi s c e l l a n e o u s - - - - - - 5 8 , 4 9 5 6 8 - 1 4 2 , 3 6 6 200,929 To t a l R e v e n u e s 41 8 , 9 9 4 7 9 , 3 7 6 4 8 0 , 9 6 6 6 1 0 2 , 5 0 0 3 6 , 0 0 0 7 7 , 5 0 6 1 , 0 6 3 , 2 6 0 - 8 7 1 , 8 6 1 3,031,073 Ex p e n d i t u r e s Cu r r e n t : Pu b l i c s a f e t y - - - - - - 4 9 , 3 4 8 - 4 4 , 9 7 1 - 94,319 Pu b l i c w o r k s 1 3 4 , 2 3 9 - - - 1 3 , 6 2 6 - - - 6 3 , 9 3 5 - 211,800 Pa r k s a n d r e c r e a t i o n - - - - - - - - 8 2 , 9 5 0 - 82,950 Co m m u n i t y s e r v i c e s - - - - - - - 9 7 0 , 5 8 3 - - 970,583 Ca p i t a l o u t l a y 9 6 , 3 1 4 1 2 6 , 8 9 9 1 6 3 , 5 1 3 - - - 4 0 , 3 7 4 8 5 , 1 6 1 2 3 2 , 9 4 2 - 745,203 De b t s e r v i c e : Pr i n c i p a l 2 7 , 0 3 6 - - - - - - 2 6 6 , 1 8 5 - 5 6 5 , 0 0 0 858,221 In t e r e s t a n d f i s c a l c h a r g e s 3 9 7 - - - - - - 3 1 , 5 8 8 - 6 6 0 , 0 2 2 692,007 To t a l E x p e n d i t u r e s 25 7 , 9 8 6 1 2 6 , 8 9 9 1 6 3 , 5 1 3 - 1 3 , 6 2 6 - 8 9 , 7 2 2 1 , 3 5 3 , 5 1 7 4 2 4 , 7 9 8 1 , 2 2 5 , 0 2 2 3,655,083 Ex c e s s ( D e f i c i e n c y ) o f Re v e n u e s O v e r E x p e n d i t u r e s 16 1 , 0 0 8 ( 4 7 , 5 2 3 ) 3 1 7 , 4 5 3 6 1 0 ( 1 1 , 1 2 6 ) 3 6 , 0 0 0 ( 1 2 , 2 1 6 ) ( 2 9 0 , 2 5 7 ) ( 4 2 4 , 7 9 8 ) ( 3 5 3 , 1 6 1 ) (624,010) Ot h e r F i n a n c i n g S o u r c e s ( U s e s ) Tr a n s f e r s i n - - - - - - - 1 0 0 , 0 0 0 6 0 0 , 0 0 0 - 700,000 Tr a n s f e r s o u t ( 2 5 0 , 0 0 0 ) - - - - ( 2 5 , 0 0 0 ) - ( 3 3 , 1 7 3 ) - - (308,173) To t a l O t h e r F i n a n c i n g S o u r c e s ( U s e s ) (2 5 0 , 0 0 0 ) - - - - ( 2 5 , 0 0 0 ) - 6 6 , 8 2 7 6 0 0 , 0 0 0 - 391,827 Ne t C h a n g e i n F u n d B a l a n c e s (8 8 , 9 9 2 ) ( 4 7 , 5 2 3 ) 3 1 7 , 4 5 3 6 1 0 ( 1 1 , 1 2 6 ) 1 1 , 0 0 0 ( 1 2 , 2 1 6 ) ( 2 2 3 , 4 3 0 ) 1 7 5 , 2 0 2 ( 3 5 3 , 1 6 1 ) (232,183) Fu n d B a l a n c e s - B e g i n n i n g 40 3 , 6 9 8 3 2 4 , 5 2 2 1 , 6 5 1 , 8 2 2 7 5 , 8 9 9 1 5 , 6 5 4 6 , 2 5 0 2 , 0 1 2 , 4 3 9 4 9 1 , 1 7 2 1 8 0 , 1 1 2 8 7 0 , 8 2 4 6,032,392 Fu n d B a l a n c e s - E n d i n g 31 4 , 7 0 6 $ 2 7 6 , 9 9 9 $ 1 , 9 6 9 , 2 7 5 $ 7 6 , 5 0 9 $ 4 , 5 2 8 $ 1 7 , 2 5 0 $ 2 , 0 0 0 , 2 2 3 $ 2 6 7 , 7 4 2 $ 3 5 5 , 3 1 4 $ 5 1 7 , 6 6 3 $ 5,800,209$ Sp e c i a l  Re v e n u e  Fu n d s CITY OF SOUTH MIAMI, FLORIDA  BUDGETARY COMPARISON SCHEDULE – STORMWATER DRAIN TRUST FUND  SPECIAL REVENUE FUND    YEAR ENDED SEPTEMBER 30, 2014      60 Variance with Final Budget ‐ Positive OriginalFinalActual(Negative) Revenues Utility tax18,900$ 18,900$ 7,443$ (11,457)$ Intergovernmental400,000 400,000 410,227 10,227 Interest Income7,500 7,500 1,324 (6,176) Total Revenues 426,400 426,400 418,994 (7,406) Expenditures Current: Public works123,782 145,237 134,239 10,998 Capital outlay415,000 393,545 96,314 297,231 Debt Service: Principal27,036 27,036 27,036 - Interest and fiscal charges2,000 2,000 397 1,603 Total Expenditures 567,818 567,818 257,986 309,832 Excess of Revenues Over Expenditures (141,418) (141,418) 161,008 302,426 Other Financing Uses Transfers out(250,000) (250,000) (250,000) - Total other financing uses(250,000) (250,000) (250,000) - Net Change in Fund Balance (391,418)$ (391,418)$ (88,992)$ 302,426$ Budgeted Amounts CITY OF SOUTH MIAMI, FLORIDA  BUDGETARY COMPARISON SCHEDULE – LOCAL OPTION GAS TAX FUND  SPECIAL REVENUE FUND    YEAR ENDED SEPTEMBER 30, 2014      61 Variance with Final Budget ‐ Positive OriginalFinalActual(Negative) Revenues Intergovernmental67,207$ 67,207$ 76,873$ 9,666$ Interest Income2,000 2,000 2,503 503 Total Revenues 69,207 69,207 79,376 10,169 Expenditures Capital outlay225,000 263,643 126,899 136,744 Total Expenditures 225,000 263,643 126,899 136,744 Excess (Deficiency) of Revenues Over Expenditures (155,793) (194,436) (47,523) 146,913 Net Change in Fund Balance (155,793)$ (194,436)$ (47,523)$ 146,913$ Budgeted Amounts CITY OF SOUTH MIAMI, FLORIDA  BUDGETARY COMPARISON SCHEDULE – PEOPLES TRANSPORTATION TAX FUND  SPECIAL REVENUE FUND    YEAR ENDED SEPTEMBER 30, 2014      62 Variance with Final Budget ‐ Positive OriginalFinalActual(Negative) Revenues Discretionary sales tax389,756$ 389,756$ 467,598$ 77,842$ Interest Income11,000 11,000 13,368 2,368 Total Revenues 400,756 400,756 480,966 80,210 Expenditures Capital outlay1,100,001 1,164,769 163,513 1,001,256 Total Expenditures 1,100,001 1,164,769 163,513 1,001,256 Excess of Revenues Over Expenditures (699,245) (764,013) 317,453 1,081,466 Net Change in Fund Balance (699,245)$ (764,013)$ 317,453$ 1,081,466$ Budgeted Amounts CITY OF SOUTH MIAMI, FLORIDA  BUDGETARY COMPARISON SCHEDULE – STATE FORFEITURE FUND  SPECIAL REVENUE FUND    YEAR ENDED SEPTEMBER 30, 2014      63 Variance with Final Budget ‐ Positive OriginalFinalActual(Negative) Revenues Interest Income500$ 500$ 610$ 110$ Total Revenues 500 500 610 110 Expenditures Current: Public safety60,00045,000- 45,000 Total Expenditures 60,000 45,000 - 45,000 Excess of Revenues Over Expenditures (59,500) (44,500) 610 45,110 Net Change in Fund Balance (59,500)$ (44,500)$ 610$ 45,110$ Budgeted Amounts CITY OF SOUTH MIAMI, FLORIDA  BUDGETARY COMPARISON SCHEDULE – TREE TRUST FUND  SPECIAL REVENUE FUND    YEAR ENDED SEPTEMBER 30, 2014      64 Variance with Final Budget ‐ Positive OriginalFinalActual(Negative) Revenues Licenses and permits-$ -$ 2,500$ 2,500$ Total Revenues - - 2,500 2,500 Expenditures Current: Public works15,000 15,000 13,626 1,374 Total Expenditures 15,000 15,000 13,626 1,374 Excess (Deficiency) of Revenues Over Expenditures (15,000) (15,000) (11,126) 3,874 Net Change in Fund Balance (15,000)$ (15,000)$ (11,126)$ 3,874$ Budgeted Amounts CITY OF SOUTH MIAMI, FLORIDA  BUDGETARY COMPARISON SCHEDULE – HOMETOWN DISTRICT IMPROVEMENT TRUST  SPECIAL REVENUE FUND    YEAR ENDED SEPTEMBER 30, 2014      65 Variance with Final Budget ‐ Positive OriginalFinalActual(Negative) Revenues Charges for services28,000$ 28,000$ 36,000$ 8,000$ Total Revenues 28,000 28,000 36,000 8,000 Other Financing Uses Transfers out(25,000) (25,000) (25,000) - Total other financing uses(25,000) (25,000) (25,000) - Net Change in Fund Balance 3,000$ 3,000$ 11,000$ 8,000$ Budgeted Amounts CITY OF SOUTH MIAMI, FLORIDA  BUDGETARY COMPARISON SCHEDULE – FEDERAL FORFEITURE FUND  SPECIAL REVENUE FUND    YEAR ENDED SEPTEMBER 30, 2014      66 Variance with Final Budget ‐ Positive OriginalFinalActual(Negative) Revenues Fines and forfeitures-$ -$ 2,914$ 2,914$ Interest income9,000 9,000 16,097 7,097 Miscellaneous80,000 80,000 58,495 (21,505) Total Revenues 89,000 89,000 77,506 (11,494) Expenditures Current: Public safety314,950 314,950 49,348 265,602 Capital outlay503,333 503,333 40,374 462,959 Total Expenditures 818,283 818,283 89,722 728,561 Excess of Revenues Over Expenditures (729,283) (729,283) (12,216) 717,067 Net Change in Fund Balance (729,283)$ (729,283)$ (12,216)$ 717,067$ Budgeted Amounts CITY OF SOUTH MIAMI, FLORIDA  BUDGETARY COMPARISON SCHEDULE – COMMUNITY REDEVELOPMENT  AGENCY FUND    YEAR ENDED SEPTEMBER 30, 2014      67 Variance with Final Budget ‐ Positive OriginalFinalActual(Negative) Revenues Ad valorem1,025,084$ 1,025,084$ 1,025,084$ -$ Rents and royalties25,00025,00033,2278,227 Interest13,00013,0004,881(8,119) Miscellaneous- - 6868 Total Revenues 1,063,084 1,063,084 1,063,260 176 Expenditures Current: Community services1,171,665 1,176,269 970,583 205,686 Capital outlay53,000 118,377 85,161 33,216 Debt Service: Principal266,186 266,186 266,185 1 Interest and fiscal charges31,589 31,589 31,588 1 Total Expenditures 1,522,440 1,592,421 1,353,517 238,902 Excess (Deficiency) of Revenues Over Expenditures (459,356) (529,337) (290,257) 239,078 Other Financing Uses Transfers in100,000 100,000 100,000 - Transfers out(33,173) (33,173) (33,173) - Total other financing uses66,827 66,827 66,827 Net Change in Fund Balance (392,529)$ (462,510)$ (223,430)$ 239,078$ Budgeted Amounts CITY OF SOUTH MIAMI, FLORIDA  BUDGETARY COMPARISON SCHEDULE – CAPITAL IMPROVEMENTS PROGRAM FUND    YEAR ENDED SEPTEMBER 30, 2014      68 Variance with Final Budget ‐ Positive OriginalFinalActual(Negative) Revenues -$ -$ -$ -$ Expenditures Current: Public safety45,000 45,000 44,971 29 Public works60,000 65,000 63,935 1,065 Park and recreation250,000 255,250 82,950 172,300 Capital outlay245,000 245,000 232,942 12,058 Total Expenditures 600,000 610,250 424,798 185,452 Excess (Deficiency) of Revenues Over Expenditures (600,000) (610,250) (424,798) (185,452) Other Financing Sources Transfers in600,000 600,000 600,000 - Total other financing sources600,000 600,000 600,000 - Net Change in Fund Balance -$ (10,250)$ 175,202$ (185,452)$ Budgeted Amounts CITY OF SOUTH MIAMI, FLORIDA  BUDGETARY COMPARISON SCHEDULE – DEBT SERVICE FUND      YEAR ENDED SEPTEMBER 30, 2014      69 Variance with Final Budget ‐ Positive OriginalFinalActual(Negative) Revenues Rents and royalties727,917$ 727,917$ 727,845$ (72)$ Interest Income2,400 2,400 1,650 (750) Miscellaneous142,366 142,366 142,366 - Total Revenues 872,683 872,683 871,861 (822) Expenditures Debt Service: Principal585,000 581,500 565,000 16,500 Interest and fiscal charges656,635 660,135 660,022 113 Total Expenditures 1,241,635 1,241,635 1,225,022 16,613 Net Change in Fund Balance (368,952)$ (368,952)$ (353,161)$ 15,791$ Budgeted Amounts TRUST AND AGENCY FUNDS  These funds account for assets held by the City in a trustee capacity or as an agent for employees, other governments and/or other funds. PENSION TRUST FUNDS  General Employees’ Pension Plan - This fund is used to account for the accumulation of resources for pension benefit payments to qualified City employees. Police Officers’ Pension Plan - This fund is used to account for the accumulation of resources for pension benefit payments to qualified public safety employees. Section 185 Police Officers Pension Trust Fund - This fund is used to account for the accumulation of resources, under Chapter 185 of the Florida Statutes, for pension benefit payments to qualified public safety employees. CITY OF SOUTH MIAMI, FLORIDA  COMBINING STATEMENT OF NET POSITION  FIDUCIARY FUNDS    YEAR ENDED SEPTEMBER 30, 2014      70 Section 185 GeneralPolicePolice EmployeesOfficersOfficers PensionPensionPension PlanPlanTrust FundTotal ASSETS Cash and cash equivalents214,170$ 282,178$ 8,029$ 504,377$ Investments, at fair value: U.S. Government and agency securities782,760 1,031,323 142,423 1,956,506 Corporate obligations1,109,960 1,462,424 155,006 2,727,390 Common stocks1,924,049 2,535,022 472,718 4,931,789 Build America bonds8,184,313 10,783,212 - 18,967,525 Mutual funds1,582,797 2,085,407 - 3,668,204 Total cash, cash equivalents, and investments13,798,049 18,179,566 778,176 32,755,791 Receivables: Employer contribution58,258 137,932 - 196,190 Employee contribution10,501 35,026 - 45,527 Dividends and interest6,835 32,321 - 39,156 Section 185 contribution- 37,780 91,879 129,659 Total receivables75,594 243,059 91,879 410,532 Other assets: Prepaid expenses872 1,149 - 2,021 Total assets13,874,515 18,423,774 870,055 33,168,344 LIABILITIES Accounts payable13,051 48,085 10,179 71,315 Minimum funding liability- - 37,780 37,780 Total liabilities13,051 48,085 47,959 109,095 NET POSITION RESTRICTED FOR PENSION BENEFITS 13,861,464$ 18,375,689$ 822,096$ 33,059,249$ CITY OF SOUTH MIAMI, FLORIDA  COMBINING STATEMENT OF CHANGES IN NET POSITION  FIDUCIARY FUNDS    YEAR ENDED SEPTEMBER 30, 2014      71 Section 185 GeneralPolicePolice EmployeesOfficersOfficers PensionPensionPension PlanPlanTrust FundTotal Additions: Contributions: Employer257,857$ 582,580$ -$ 840,437$ Employees151,841 425,528 - 577,369 Section 185 contributions- 37,780 91,879 129,659 Total contributions409,698 1,045,888 91,879 1,547,465 Investments income: Net appreciation in fair value of investments1,126,010 1,467,746 56,576 2,650,332 Interest and dividends248,087 323,377 10,884 582,348 Total investment income1,374,097 1,791,123 67,460 3,232,680 Less investment expenses35,021 53,224 12,146 100,391 Net investment income1,339,076 1,737,899 55,314 3,132,289 Total additions1,748,774 2,783,787 147,193 4,679,754 Deductions: Benefits paid574,029 565,008 - 1,139,037 Refunds of contributions48,124 127,952 - 176,076 Administrative expenses43,751 57,029 16,367 117,147 Minimum benefit funding payment- - 37,780 37,780 Total deductions665,904 749,989 54,147 1,470,040 Changes in net position1,082,870 2,033,798 93,046 3,209,714 Net position restricted for pension benefits, October 1, 2013, as restated12,778,594 16,341,891 729,050 29,849,535 Net position restricted for pension benefits, September 30, 201413,861,464$ 18,375,689$ 822,096$ 33,059,249$ STATISTICAL SECTION STATISTICAL SECTION  This part of the City of South Miami, Florida’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. CONTENTS  PAGE  Financial Trends These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. 72-75 Revenue Capacity These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax. 76-79 Debt Capacity These schedules present information to help the reader asses the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. 80-83 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. 84-85 Operating Information These schedules contain service and infrastructure data 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. 886-88 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. CI T Y  OF  SO U T H  MI A M I ,  FL O R I D A   NE T  PO S I T I O N  BY  CO M P O N E N T    (A C C R U A L  BA S I S  OF  AC C O U N T I N G )    LA S T  TE N  FI S C A L  YE A R S *  (A M O U N T S  EX P R E S S E D  IN  TH O U S A N D S )      72 Table 1 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20132014 GO V E R N M E N T A L A C T I V I T I E S : Ne t i n v e s t m e n t i n c a p i t a l a s s e t s 1 0 , 6 0 4 $ 1 4 , 3 0 2 $ 1 6 , 6 9 4 $ 2 1 , 8 7 1 $ 2 3 , 8 9 4 $ 2 3 , 4 9 7 $ 2 3 , 7 6 7 $ 2 4 , 3 1 8 $ 2 4 , 3 5 3 $ 26,306$ Re s t r i c t e d 6 , 2 5 5 4 , 1 6 5 4 , 3 0 4 4 , 2 4 9 4 , 6 9 2 4 , 5 8 9 4 , 6 8 0 6 , 7 1 9 6 , 3 5 3 5 , 9 6 3 Un r e s t r i c t e d 5 , 4 9 2 7 , 6 6 1 1 0 , 0 0 3 9 , 1 6 7 8 , 9 3 1 7 , 0 1 1 8 , 3 2 4 7 , 9 5 6 8 , 3 2 4 9 , 7 7 8 To t a l g o v e r n m e n t a l a c ti vit i es n e t p o s it i on 22 ,35 1 $ 26 ,12 8 $ 31 ,00 1 $ 35 ,28 7 $ 37 ,51 7 $ 35 ,09 7 $ 36 ,77 1 $ 38 ,99 3 $ 39,030$ 42,047$ CI T Y  OF  SO U T H  MI A M I ,  FL O R I D A   CH A N G E S  IN  NE T  PO S I T I O N    (A C C R U A L  BA S I S  OF  AC C O U N T I N G )    LA S T  TE N  FI S C A L  YE A R S *  (A M O U N T S  EX P R E S S E D  IN  TH O U S A N D S )      73 Table 2 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 2014 EX P E N S E S : Go v e r n m e n t a l a c t i v i t i e s : G e n e r a l g o v e r n m e n t 5 , 8 2 8 $ 5 , 8 6 8 $ 6 , 9 7 0 $ 8 , 1 5 5 $ 8 , 4 1 3 $ 7 , 3 0 4 $ 3 , 9 1 2 $ 3 , 5 9 8 $ 4 , 0 3 2 $ 4 , 4 6 4 $ P u b l i c s a f e t y 4 , 3 8 6 4 , 2 8 0 4 , 5 5 4 4 , 4 1 0 4 , 5 2 3 4 , 7 1 7 7 , 5 4 2 7 , 4 8 3 7 , 8 5 3 6 , 9 0 6 P u b l i c w o r k s 5 , 2 5 8 5 , 9 0 9 5 , 0 1 4 4 , 5 3 5 4 , 3 4 2 4 , 6 8 3 4 , 3 3 7 4 , 7 4 7 3 , 9 6 0 3 , 7 0 8 C o m m u n i t y s e r v i c e s - - - - - 4 8 4 1 , 0 9 8 1 , 2 8 4 1 , 2 4 9 9 9 9 C u l t u r e a n d r e c r e a t i o n 1 , 2 3 1 1 , 3 6 6 8 6 1 1 , 0 2 1 1 , 0 3 7 1 , 0 6 9 1 , 1 4 0 1 , 0 8 4 1 , 6 6 8 1 , 7 7 2 I n t e r e s t o n l o n g - t e r m d e b t 5 3 1 6 1 3 4 8 7 6 7 6 9 6 0 1 , 0 5 5 9 2 9 9 4 6 8 3 0 7 7 5 To t a l g o v e r n m e n t a l a c t i v i t i e s e x p e n s e s 1 7 , 2 3 4 1 8 , 0 3 6 1 7 , 8 8 6 1 8 , 7 9 7 1 9 , 2 7 5 1 9 , 3 1 2 1 8 , 9 5 8 1 9 , 1 4 2 1 9 , 5 9 2 1 8 , 6 2 4 PR O G R A M R E V E N U E S : Go v e r n m e n t a l a c t i v i t i e s : C h a r g e s f o r s e r v i c e s : G e n e r a l g o v e r n m e n t 3 , 3 3 6 3 , 0 3 6 2 , 2 0 0 3 , 9 5 2 3 , 5 8 4 3 , 4 5 3 3 7 1 2 8 7 1 , 0 4 7 1 , 0 9 8 P u b l i c s a f e t y 3 0 4 7 4 8 4 5 7 4 5 9 4 0 7 4 7 6 4 , 6 0 8 5 , 9 1 7 1 , 7 5 0 3 , 9 1 3 P u b l i c w o r k s 3 2 6 3 1 6 3 4 3 3 9 9 4 6 6 4 0 8 5 7 4 5 2 5 2 2 3 6 C o m m u n i t y s e r v i c e s - - - - - - 3 4 3 1 2 , 8 9 6 - C u l t u r e a n d r e c r e a t i o n 2 7 9 1 6 1 1 8 2 1 , 2 2 9 2 9 6 2 4 2 1 9 9 2 3 4 - - I n t e r e s t o n l o n g - t e r m d e b t - - - - - 4 9 3 2 4 4 4 4 6 - 4 0 6 O p e r a t i n g a n d c a p i t a l g r a n t s a n d c o n t r i b u t i o n s 3 , 9 3 1 4 , 5 2 6 4 , 4 5 8 3 , 2 8 8 2 , 2 6 6 7 1 8 1 , 1 5 9 5 4 1 5 1 5 2 , 2 1 8 To t a l g o v e r n m e n t a l a c t i v i t i e s p r o g r a m r e v e n u e s 8 , 1 7 6 8 , 7 8 7 7 , 6 4 0 9 , 3 2 7 7 , 0 1 9 5 , 7 9 0 7 , 1 8 9 7 , 9 8 1 6 , 2 3 0 7 , 6 7 1 Ne t ( e x p e n s e ) / r e v e n u e : G o v e r n m e n t a l a c t i v i t i e s ( 9 , 0 5 8 ) ( 9 , 2 4 9 ) ( 1 0 , 2 4 6 ) ( 9 , 4 7 0 ) ( 1 2 , 2 5 6 ) ( 1 3 , 5 2 2 ) ( 1 1 , 7 6 9 ) ( 1 1 , 1 6 1 ) ( 1 3 , 3 6 2 ) ( 1 0 , 9 5 3 ) GE N E R A L R E V E N U E S A N D O T H E R C H A N G E S I N N E T P O S I T I O N : Go v e r n m e n t a l a c t i v i t i e s : T a x e s : P r o p e r t y t a x e s 7 , 2 3 8 8 , 1 7 0 8 , 8 7 6 8 , 1 0 4 9 , 0 5 1 7 , 6 8 5 7 , 1 1 4 6 , 7 0 8 6 , 1 2 2 6 , 4 0 6 U t i l i t y t a x e s 1 , 6 3 3 1 , 7 7 6 1 , 8 2 9 1 , 9 6 5 2 , 0 9 2 2 , 0 8 7 2 , 0 7 0 2 , 0 5 2 2 , 0 7 3 2 , 1 6 7 B u s i n e s s t a x e s - - 5 5 3 5 5 2 5 8 1 6 3 0 6 0 6 6 4 1 6 2 0 6 1 3 F r a n c h i s e t a x e s 8 1 3 1 , 0 0 8 1 , 1 1 6 1 , 1 1 6 1 , 1 9 7 1 , 1 0 1 1 , 0 6 6 1 , 0 4 8 1 , 5 7 4 1 , 6 4 1 S e r v i c e c o n c e s s i o n a r r a n g e m e n t - - - - - 3 3 5 3 5 9 3 7 0 2 4 8 3 7 7 I n t e r g o v e r n m e n t a l ( u n r e s t r i c t e d ) 1 , 2 4 5 1 , 3 1 0 1 , 2 9 7 1 , 2 8 2 1 , 2 0 0 2 , 0 5 1 1 , 9 8 0 2 , 1 9 8 2 , 2 7 9 1 5 4 I n t e r e s t i n c o m e ( u n r e s t r i c t e d ) 3 7 5 5 9 4 8 0 9 3 9 6 2 2 6 2 1 8 1 4 0 1 8 1 3 3 1 2 , 1 8 3 O t h e r - 1 6 8 5 2 4 3 4 1 1 3 9 1 1 0 1 0 8 1 8 5 3 0 5 4 2 8 To t a l g o v e r n m e n t a l a c t i v i t i e s 1 1 , 3 0 4 1 3 , 0 2 6 1 5 , 0 0 4 1 3 , 7 5 6 1 4 , 4 8 6 1 4 , 2 1 7 1 3 , 4 4 3 1 3 , 3 8 3 1 3 , 5 5 2 1 3 , 9 6 9 CH A N G E S I N N E T P O S I T I O N : Gov e r n m e n tal a c ti vit i es 2,24 6 $ 3,77 7 $ 4,75 8 $ 4,28 6 $ 2,23 0 $ 69 5 $ 1,67 4 $ 2,22 2 $ 19 0 $ 3,016$ CI T Y  OF  SO U T H  MI A M I ,  FL O R I D A   FU N D  BA L A N C E S  OF  GO V E R N M E N T A L  FU N D S   (M O D I F I E D  AC C R U A L  BA S I S  OF  AC C O U N T I N G )    LA S T  TE N  FI S C A L  YE A R S *  (A M O U N T S  EX P R E S S E D  IN  TH O U S A N D S )      74 Table 3 20 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 Ge n e r a l F u n d : Re s e r v e d 6 , 2 8 8 $ 5 , 1 3 0 $ 5 , 7 2 0 $ 6 , 4 7 6 $ 4 , 4 6 2 $ 2 , 1 6 0 $ - $ - $ - $ -$ Un r e s e r v e d 4 , 3 1 9 4 , 7 9 6 5 , 2 6 8 3 , 5 2 3 6 , 2 5 1 6 , 3 2 5 - - - - No n s p e n d a b l e - - - - - - 1 8 6 2 0 4 2 0 9 242 Co m m i t t e d - - - - - - 1 , 7 8 5 1 , 6 8 9 1 , 7 0 4 1,717 As s i g n e d - - - - - - 1 , 9 8 2 6 2 2 1 , 0 6 4 3,957 Un a s s i g n e d - - - - - - 5 , 5 4 6 6 , 1 4 4 6 , 3 5 9 4,867 To t a l G e n e r a l F u n d 1 0 , 6 0 7 $ 9 , 9 2 6 $ 1 0 , 9 8 8 $ 9 , 9 9 9 $ 1 0 , 7 1 3 $ 8 , 4 8 5 $ 9 , 4 9 9 $ 8 , 6 5 9 $ 9 , 3 3 6 $ 10,783$ Al l o t h e r g o v e r n m e n t a l f u n d s : Re s e r v e d 1 , 7 0 5 $ 1 , 8 5 4 $ 1 , 9 8 6 $ 2 , 3 1 3 $ 1 , 9 2 1 $ 2 1 5 $ - $ - $ - $ -$ Un r e s e r v e d , r e p o r t e d i n : S p e c i a l R e v e n u e F u n d s 5 7 9 7 5 0 2 , 6 1 2 2 , 4 6 0 2 , 4 7 2 4 , 0 7 5 - - - - No n s p e n d a b l e - - - - - - 4 - 7 2 71 Re s t r i c t e d - - - - - - 4 , 6 7 6 6 , 7 2 0 6 , 3 5 3 5,963 Co m m i t t e d 10 9 2 2 22 As s i g n e d - - - - - - - 5 1 0 1 8 0 355 To t a l a l l o t h e r g o v e r n m e n t a l f u n d s 2 , 2 8 4 $ 2 , 6 0 4 $ 4 , 5 9 8 $ 4 , 7 7 3 $ 4 , 3 9 3 $ 4 , 2 9 0 $ 4 , 6 9 0 $ 7 , 2 3 9 $ 6 , 6 2 7 $ 6,411$ No t e : I n f o r m a t i o n f o r f i s c a l y e a r s 2 0 0 5 t h r o u g h 2 0 1 0 h a v e n o t b e e n r e s t a t e d f o r Go v e r n m e n t a l A c c o u n t i n g S t a n d a r d s B o a r d ( G AS B ) S t a t e m e n t N o . 5 4 c l a s s i f i c a t i o n s . CI T Y  OF  SO U T H  MI A M I ,  FL O R I D A   CH A N G E S  IN  FU N D  BA L A N C E S  OF  GO V E R N M E N T A L  FU N D S   (M O D I F I E D  AC C R U A L  BA S I S  OF  AC C O U N T I N G )    LA S T  TE N  FI S C A L  YE A R S *  (A M O U N T S  EX P R E S S E D  IN  TH O U S A N D S )      75 Table 4 20 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 RE V E N U E S : Ta x e s a n d f r a n c h i s e f e e s 8 , 0 5 0 $ 9 , 1 7 8 $ 9 , 9 9 2 $ 9 , 7 7 2 $ 1 0 , 8 2 9 $ 9 , 4 1 6 $ 8 , 7 8 7 $ 8 , 3 9 7 $ 8 , 3 1 6 $ 8,660$ Ch a r g e s f o r s e r v i c e s 2, 3 5 2 2 , 5 3 2 2 , 1 9 7 2 , 8 1 8 3 , 0 6 3 3 , 1 7 5 3 , 9 6 8 4 , 0 8 9 2 , 9 1 8 2,857 Ut i l i t y t a x e s 1, 6 3 4 1 , 7 7 6 1 , 8 2 9 1 , 9 6 5 2 , 0 9 2 2 , 0 8 7 2 , 0 7 0 2 , 0 5 2 2 , 0 7 4 2,167 In t e r g o v e r n m e n t a l 5, 1 7 6 5 , 6 8 6 5 , 5 9 3 4 , 4 1 9 3 , 3 1 5 2 , 4 7 1 3 , 0 9 1 2 , 6 1 4 2 , 7 0 2 4,309 Li c e n s e s a n d p e r m i t s 1, 1 0 1 1 , 2 0 2 1 , 1 0 2 1 , 1 3 7 4 9 5 4 7 0 9 6 4 6 6 7 1 , 0 4 7 1,098 Fi n e s a n d f o r f e i t u r e s 30 4 4 4 2 3 4 9 3 3 0 3 2 6 4 1 5 4 8 3 1 , 9 4 4 9 2 6 849 In t e r e s t i n c o m e 37 5 5 9 4 8 0 9 3 9 6 2 2 6 2 1 9 1 4 0 1 8 1 1 5 3 145 Re n t s a n d r o y a l t i e s - - - - - 1 , 1 2 9 1 , 0 0 7 1 , 0 2 6 1 , 0 7 2 1,026 Ot h e r 48 8 4 0 3 7 7 4 2 , 2 4 6 1 , 1 5 9 2 6 8 4 9 5 4 3 9 3 9 7 519 To t a l r e v e n u e s 19 , 4 8 0 2 1 , 8 1 3 2 2 , 6 4 5 2 3 , 0 8 3 2 1 , 5 0 5 1 9 , 6 5 0 2 1 , 0 0 5 2 1 , 4 0 9 1 9 , 6 0 5 21,630 EX P E N D I T U R E S : Ge n e r a l g o v e r n m e n t 5, 6 4 8 5 , 7 4 5 6 , 6 6 0 7 , 2 3 8 6 , 7 5 9 6 , 7 0 9 3 , 2 1 7 2 , 8 3 8 3 , 2 5 0 3,684 Pu b l i c s a f e t y 4, 2 7 0 4 , 1 9 4 4 , 2 5 3 4 , 3 3 3 4 , 3 5 8 4 , 5 7 2 7 , 2 4 2 7 , 0 7 1 7 , 5 3 2 6,564 Pu b l i c w o r k s 4, 6 6 0 5 , 4 0 9 5 , 1 0 9 5 , 2 8 4 5 , 1 0 0 4 , 3 2 9 4 , 1 4 8 3 , 8 2 2 3 , 3 3 8 3,252 Co m m u n i t y s e r v i c e s - - - - - 4 8 4 1 , 0 6 5 1 , 2 3 2 1 , 2 2 0 970 Cu l t u r e a n d r e c r e a t i o n 1, 1 9 9 1 , 3 3 9 8 3 7 9 7 7 9 7 9 1 , 0 3 5 1 , 0 8 9 1 , 0 3 4 1 , 6 0 7 1,674 De b t s e r v i c e : P r i n c i p a l 39 1 6 1 2 2 , 1 8 3 2 , 4 4 4 1 , 2 8 4 1 , 0 3 8 2 , 5 9 9 8 0 2 1 , 1 0 5 1,077 I n t e r e s t a n d f i s c a l c h a r g e s 53 8 6 1 4 6 1 4 9 2 0 9 0 9 8 8 7 1 , 1 6 7 6 6 0 7 5 0 695 Ca p i t a l o u t l a y 3, 0 3 2 7 , 5 3 8 8 , 8 2 7 4 , 6 5 4 2 , 3 2 0 1 , 4 1 2 1 , 1 0 0 2 , 2 4 1 7 3 7 2,484 To t a l e x p e n d i t u r e s 19 , 7 3 8 2 5 , 4 5 1 2 8 , 4 8 3 2 5 , 8 5 0 2 1 , 7 0 9 2 0 , 4 6 6 2 1 , 6 2 7 1 9 , 7 0 0 1 9 , 5 3 9 20,400 Ex c e s s ( d e f i c i e n c y ) o f r e v e n u e s o v e r e x p e n d i t u r e s (25 8 ) (3, 6 3 8 ) (5, 8 3 8 ) (2, 7 6 7 ) (20 4 ) (81 6 ) (62 2 ) 1 , 7 0 9 6 6 1,230 OT H E R F I N A N C I N G S O U R C E S ( U S E S ) : Tr a n s f e r s i n - - - - 6 4 1 4 8 5 8 2 0 2 , 3 5 9 5 4 3 1,008 Tr a n s f e r s o u t - - - - (64 1 ) (48 5 ) (82 0 ) (2,359) (543) (1,008) Is s u a n c e o f d e b t 96 1 3 , 2 7 7 8 , 6 7 9 1 , 9 5 3 5 3 8 2 2 8 7 4 8 - - - Pr o c e e d s f r o m r e f u n d i n g d e b t - - - - - - 7 , 5 7 5 - - - Pa y m e n t t o b o n d e s c r o w a g e n t - - - - - - (6, 2 8 7 ) - - - T o t a l o t h e r f i n a n c i n g s o u r c e s ( u s e s ) 96 1 3 , 2 7 7 8 , 6 7 9 1 , 9 5 3 5 3 8 2 2 8 2 , 0 3 6 - - - Ne t c h a n g e i n f u n d b a l a n c e s 70 3 $ (36 1 ) $ 2 , 8 4 1 $ (81 4 ) $ 3 3 4 $ (58 8 ) $ 1 , 4 1 4 $ 1 , 7 0 9 $ 6 6 $ 1,230$ De b t s e r v i c e a s a per c e n t a ge o f n o n c a p it al e x p e n di t ur e s 5. 6 % 6 . 8 % 1 4 . 2 % 1 5 . 9 % 1 1 . 8 % 1 0 . 0 % 1 8 . 3 % 7 . 8 % 9 . 5 % 8 . 7 % CI T Y  OF  SO U T H  MI A M I ,  FL O R I D A   AS S E S S E D  VA L U E  AN D  ES T I M A T E D  AC T U A L  VA L U E  OF  TA X A B L E  PR O P E R T Y     LA S T  TE N  FI S C A L  YE A R S *  (A M O U N T S  EX P R E S S E D  IN  TH O U S A N D S )      76 Table 5 Net Assessed Value as a Percentage of Estimated Ne t T o t a l E s t i m a t e d A c t u a l Fi s c a l R e a l P e r s o n a l A s s e s s e d D i r e c t A c t u a l V a l u e Ye a r  (2 ) P r o p e r t y P r o p e r t y V a l u e T a x  Ra t e V a l u e ( 1 ) 20 0 5 1 , 1 2 5 , 3 9 1 $ 8 6 , 7 0 8 $ 1 , 2 1 2 , 0 9 9 $ 6 . 6 8 1 0 1 , 2 1 2 , 0 9 9 $ 1 0 0 . 0 0 % 20 0 6 1 , 3 6 3 , 3 7 1 $ 8 2 , 6 5 8 $ 1, 4 4 6 , 0 2 9 $ 5 . 8 8 1 0 1 , 4 4 6 , 0 2 9 $ 1 0 0 . 0 0 % 20 0 7 1 , 5 7 8 , 9 4 8 $ 8 6 , 1 5 0 $ 1 , 6 6 5 , 0 9 8 $ 4 . 8 1 8 0 1 , 6 6 5 , 0 9 8 $ 1 0 0 . 0 0 % 20 0 8 1 , 6 2 1 , 8 1 5 $ 6 9 , 1 3 7 $ 1 , 6 9 0 , 9 5 2 $ 5 . 2 7 9 0 1 , 6 9 0 , 9 5 2 $ 1 0 0 . 0 0 % 20 0 9 1 , 4 5 5 , 8 6 7 $ 7 8 , 4 1 1 $ 1 , 5 3 4 , 2 7 8 $ 4 . 9 5 2 6 1 , 5 3 4 , 2 7 8 $ 1 0 0 . 0 0 % 20 1 0 1 , 3 5 0 , 9 1 7 $ 7 1 , 7 1 2 $ 1 , 4 2 2 , 6 2 9 $ 4 . 9 5 2 6 1 , 4 2 2 , 6 2 9 $ 1 0 0 . 0 0 % 20 1 1 1 , 3 4 7 , 0 2 4 $ 6 6 , 7 5 1 $ 1 , 4 1 3 , 7 7 5 $ 4 . 6 6 6 2 1 , 4 1 3 , 7 7 5 $ 1 0 0 . 0 0 % 20 1 2 1 , 3 6 2 , 0 1 4 $ 6 4 , 8 2 3 $ 1 , 4 2 6 , 8 3 7 $ 4 . 3 6 3 9 1 , 4 2 6 , 8 3 7 $ 1 0 0 . 0 0 % 20 1 3 1 , 3 7 2 , 6 0 0 $ 6 0 , 7 4 3 $ 1 , 4 3 3 , 3 4 3 $ 4 . 3 6 3 9 1 , 4 3 3 , 3 4 3 $ 1 0 0 . 0 0 % 20 1 4 1 , 4 1 1 , 4 4 3 $ 6 9 , 1 5 8 $ 1 , 4 8 0 , 6 0 1 $ 4 . 3 6 3 9 1 , 4 8 0 , 6 0 1 $ 1 0 0 . 0 0 % CI T Y  OF  SO U T H  MI A M I ,  FL O R I D A   PR O P E R T Y  TA X  RA T E S   DI R E C T  AN D  OV E R L A P P I N G  GO V E R N M E N T S    LA S T  TE N  FI S C A L  YE A R S      77 Table 6   Other Fi s c a l Ye a r  (2 ) Ba s i c   Di r e c t   Ra t e De b t   Se r v i c e   Ra t e MD C   Sc h o o l   Bo a r d  ‐   Op e r a t i n g MD C Sc h o o l   Bo a r d  ‐   De b t   Se r v i c e Ev e r g l a d e s Pr o j e c t So u t h  Fl o r i d a Wa t e r   Ma n a g e m e n t Di s t r i c t Fl o r i d a   In l a n d Na v i g a t i o n Di s t r i c t Co u n t y Wi d e  ‐   Op e r a t i n g Co u n t y Wi d e  ‐   De b t   Se r v i c e Fi r e  & Re s c u e  ‐   Op e r a t i n g Fi r e  & Re s c u e  ‐ De b t   Se r v i c e MD C   Li b r a r y   Di s t r i c t Childrens Trust AuthorityTotal City‐Wide 20 0 5 6 . 6 8 1 0 - 7 . 9 4 7 0 0 . 4 9 1 0 0 . 1 0 0 0 0 . 5 9 7 0 0 . 0 3 8 5 5 . 8 3 5 0 0 . 2 8 5 0 2 . 6 0 9 0 0 . 0 5 2 0 0 . 4 8 6 0 0 . 4 2 8 8 2 5 . 5 5 0 3 20 0 6 5. 8 8 1 0 - 7. 6 9 1 0 0 . 4 1 4 0 0 . 1 0 0 0 0. 5 9 7 0 0 . 0 3 8 5 5. 6 1 5 0 0 . 2 8 5 0 2 . 6 0 9 0 0 . 0 4 2 0 0 . 4 8 6 0 0 . 4 2 2 3 24.1808 20 0 7 4 . 8 1 8 0 - 7 . 5 7 0 0 0 . 3 7 8 0 0 . 0 8 9 4 0 . 5 3 4 6 0 . 0 3 4 5 4 . 5 7 9 6 0 . 2 8 5 0 2 . 2 0 6 7 0 . 0 4 2 0 0 . 3 8 4 2 0 . 4 2 2 3 2 1 . 3 4 4 3 20 0 8 5 . 2 7 9 0 - 7 . 5 3 3 0 0 . 2 6 4 0 0 . 0 8 9 4 0 . 5 3 4 6 0 . 0 3 4 5 4 . 8 3 7 9 0 . 2 8 5 0 2 . 1 8 5 1 0 . 0 4 2 0 0 . 3 8 2 2 0 . 4 2 1 2 2 1 . 8 8 7 9 20 0 9 4 . 9 5 2 6 - 7 . 6 9 8 0 0 . 2 9 7 0 0 . 0 8 9 4 0 . 5 3 4 6 0 . 0 3 4 5 4 . 8 3 7 9 0 . 2 8 5 0 2 . 1 8 5 1 0 . 0 4 2 0 0 . 3 8 2 2 0 . 5 0 0 0 2 1 . 8 3 8 3 20 1 0 4 . 9 5 2 6 - 7 . 8 6 4 0 0 . 3 8 5 0 0 . 0 8 9 4 0 . 5 3 4 6 0 . 0 3 4 5 5 . 4 2 7 5 0 . 4 4 5 0 2 . 5 7 5 3 0 . 0 2 0 0 0 . 2 8 4 0 0 . 5 0 0 0 2 3 . 1 1 1 9 20 1 1 4 . 6 6 6 2 - 7 . 7 6 5 0 0 . 2 4 0 0 0 . 0 6 2 4 0 . 3 7 3 9 0 . 0 3 4 5 4 . 8 0 5 0 0 . 2 8 5 0 2 . 4 4 9 6 0 . 0 1 3 1 0 . 1 7 9 5 0 . 5 0 0 0 2 1 . 3 7 4 2 20 1 2 4 . 3 6 3 9 - 7 . 7 6 5 0 0 . 2 3 3 0 0 . 0 6 1 3 0 . 3 6 7 6 0 . 0 3 4 5 4 . 7 0 3 5 0 . 2 8 5 0 2 . 4 4 9 6 0 . 0 1 3 1 0 . 1 7 2 5 0 . 5 0 0 0 2 0 . 9 4 9 0 20 1 3 4 . 3 6 3 9 - 7 . 6 4 4 0 0 . 3 3 3 0 0 . 0 5 8 7 0 . 3 5 2 3 0 . 0 3 4 5 4 . 7 0 3 5 0 . 4 2 2 0 2 . 4 4 9 6 0 . 0 1 2 7 0 . 1 7 2 5 0 . 5 0 0 0 2 1 . 0 4 6 7 20 1 4 4 . 3 6 3 9 - 7 . 7 7 5 0 0 . 1 9 9 0 0 . 0 5 4 8 0 . 3 2 9 4 0 . 0 3 4 5 4 . 6 6 6 9 0 . 4 5 0 0 2 . 4 2 0 7 0 . 0 1 1 4 0 . 2 8 4 0 0 . 5 0 0 0 2 1 . 0 8 9 6 ( 2 ) Y e a r o f l e v y . - M D C - M i a m i D a d e C o u n t y Ci t y 1 0 . 0 0 0 m i l l 10 . 0 0 0 m i l l s Co u n t y 1 0 . 0 0 0 m i l l 10 . 0 0 0 m i l l s SF W M D 10 . 0 0 0 m i l l 10 . 0 0 0 m i l l s S o u r c e : M i a m i - D a d e C o u n t y D e p a r t m e n t o f P r o p e r t y A p p r a i s a l * S o u t h F l o r i d a W a t e r M a n a g e m e n t D i s t r i c t Ov e r l a p p i n g  Ra t e s  (1 ) ( 1 ) O v e r l a p p i n g r a t e s a r e t h o s e o f l o c a l a n d c o u n t y g o v e r n m e n t s t h a t a p p l y t o p r o p e r t y o w n e r s w i t h i n t h e C i t y o f S o u t h M i a m i . Ad d i t i o n a l i n f o r m a t i o n : - P r o p e r t y t a x r a t e s a r e a s s e s s e d p e r $ 1 , 0 0 0 o f t a x a b l e a s s e s s e d v a l u a t i o n . - C i t y p r o p e r t y t a x r a t e s a b o v e ( a l l i n c l u s i v e ) d o n o t h a v e a d e b t s e r v i c e m i l l a g e c o m p o n e n t . Ta x r a t e l i m i t s : Ci t y  of  So u t h  Mi a m i Sc h o o l  Mi l l a g e s R e g i o n a l  Mi l l a g e s C o u n t y  Wi d e  Mi l l a g e s CI T Y  OF  SO U T H  MI A M I ,  FL O R I D A   PR I N C I P A L  PR O P E R T Y  TA X P A Y E R S     CU R R E N T  YE A R  AN D  TE N  YE A R S  AG O  (A M O U N T S  EX P R E S S E D  IN  TH O U S A N D S )      78 Table 7 Pe r c e n t a g e Percentage To t a l Total As s e s s e d A s s e s s e d A s s e s s e d A s s e s s e d Ta x p a y e r V a l u a t i o n R a n k V a l u a t i o n T a x p a y e r V a l u a t i o n R a n k V a l u a t i o n Ba k e r y A s s o c i a t e s , L t d . 8 8 , 5 5 0 $ 1 5 . 9 8 % B a k e r y A s s o c i a t e s , L t d . 1 1 0 , 0 0 0 $ 1 9 . 1 % RR C 5 7 t h A v e n u e L L C 4 3 , 5 9 0 2 2 . 9 4 % S o u t h M i a m i C o r p . 1 1 , 3 4 8 2 0 . 9 % La r k i n C o m m u n i t y H o s p i t a l , I n c . 2 1 , 8 7 6 3 1 . 4 8 % J . W . A d v a n c e D e v e l o p m e n t C o r p . 1 0 , 8 3 7 3 0 . 9 % JW A d v a n c e L L C 2 0 , 0 0 0 4 1 . 3 5 % H e a l t h S o u t h D o c t o r ' s H o s p i t a l 7 , 3 2 5 4 0 . 6 % S M i a m i H o s p i t a l D e v F u n d I n c . 1 9 , 8 0 0 5 1 . 3 4 % A m e r i c a ' s C a p i t a l P a r t n e r s 7 , 0 0 0 5 0 . 6 % Fl o r i d a P o w e r & L i g h t C o m p a n y 1 5 , 1 5 6 6 1 . 0 2 % A . G r o v e r M a t h e n e y 6 , 4 4 0 6 0 . 5 % So u t h M i a m i C o r p . 1 5 , 0 1 2 7 1 . 0 1 % J o h n H a n c o c k - G a n n o n J o i n t V e n t u r e 5 , 8 8 7 7 0 . 5 % KI M C O S o u t h M i a m i 1 3 , 3 1 5 8 0 . 9 0 % S u n s e t A s s o c i a t e s , L t d . 5 , 8 8 0 8 0 . 5 % Ca p s t o n e C a p i t a l T r u s t , I n c . 1 3 , 2 0 0 9 0 . 8 9 % L a r k i n C o m m u n i t y H o s p i t a l 5 , 3 0 4 9 0 . 4 % HT A S u n s e t L L C 1 1 , 2 9 3 1 0 0 . 7 6 % K I M C O S o u t h M i a m i 5 , 3 0 0 1 0 0 . 4 % 26 1 , 7 9 2 $ 1 7 . 6 8 % 1 7 5 , 3 2 1 $ 1 9 . 9 % So u r c e : M i a m i - D a d e C o u n t y T a x A s s e s s o r s ' O f f i c e 2 0 1 4 & 2 0 0 5 T a x R o l l s 20 1 4 20 0 5 CI T Y  OF  SO U T H  MI A M I ,  FL O R I D A   PR O P E R T Y  TA X  LE V I E S  AN D  CO L L E C T I O N S     LA S T  TE N  FI S C A L  YE A R S *  (A M O U N T S  EX P R E S S E D  IN  TH O U S A N D S )      79 Table 8 To t a l Fi s c a l T a x e s Ye a r L e v i e d C o l l e c t i o n s  in En d e d F o r  Fi s c a l P e r c e n t S u b s e q u e n t P e r c e n t Se p t e m b e r  30 , Y e a r  (1 ) A m o u n t  (2 ) o f  Le v y Y e a r s A m o u n t  (2 ) o f  Levy 20 0 5 7 , 0 3 3 $ 6 , 4 0 2 $ 9 1 . 0 % 4 9 $ 6 , 4 5 1 $ 9 1 . 7 % 20 0 6 7 , 9 3 6 $ 6 , 8 8 6 $ 86 . 8 % 64 $ 6, 9 5 0 $ 8 7 . 6 % 20 0 7 8 , 3 6 7 $ 7 , 1 8 5 $ 8 5 . 9 % 9 2 $ 7 , 2 7 7 $ 8 7 . 0 % 20 0 8 7 , 7 6 4 $ 6 , 5 8 2 $ 8 4 . 8 % 4 2 $ 6 , 6 2 4 $ 8 5 . 3 % 20 0 9 8 , 6 1 6 $ 7 , 5 3 5 $ 8 7 . 5 % 5 4 $ 7 , 5 8 9 $ 8 8 . 1 % 20 1 0 7 , 1 1 9 $ 6 , 7 6 3 $ 9 5 . 0 % 4 5 $ 6 , 8 0 8 $ 9 5 . 6 % 20 1 1 6 , 6 2 8 $ 6 , 4 0 2 $ 9 6 . 6 % 5 3 $ 6 , 4 5 5 $ 9 7 . 4 % 20 1 2 6 , 5 9 6 $ 6 , 0 4 9 $ 9 1 . 7 % 1 4 8 $ 6 , 1 9 7 $ 9 4 . 0 % 20 1 3 6 , 2 2 6 $ 5 , 3 7 3 $ 8 6 . 3 % 2 2 8 $ 5 , 6 0 1 $ 9 0 . 0 % 20 1 4 6 , 2 5 4 $ 5 , 8 4 2 $ 9 3 . 4 % 2 6 $ 5 , 8 6 8 $ 9 3 . 8 % (1 ) D a t a f r o m F o r m D R - 4 2 0 p r o v i d e d t o F l o r i d a D e p a r t m e n t o f R e v e n u e (2 ) P r o v i d e d b y C i t y o f S o u t h M i a m i F i n a n c e D e p t . of  Le v y T o t a l  Collections Co l l e c t e d  wi t h i n th e  Fi s c a l  Ye a r CI T Y  OF  SO U T H  MI A M I ,  FL O R I D A   RA T I O S  OF  OU T S T A N D I N G  DE B T  BY  TY P E     LA S T  TE N  FI S C A L  YE A R S *  (A M O U N T S  EX P R E S S E D  IN  TH O U S A N D S )      80 Table 9 Pe r c e n t a g e To t a l o f  Pe r s o n a l P e r Fi s c a l R e v e n u e N o t e s C a p i t a l P r i m a r y I n c o m e C a p i t a Ye a r B o n d s P a y a b l e L e a s e s G o v e r n m e n t ( 1 ) ( 1 ) 20 0 5 8 , 2 7 0 $ 8 6 3 $ 5 1 1 $ 9 , 6 4 4 $ 1 3 . 6 8 % 0 . 8 9 5 6 $ 20 0 6 8 , 1 1 5 $ 3 , 4 3 2 $ 6 0 8 $ 1 2 , 1 5 5 $ 1 6 . 3 1 % 1 . 1 1 6 1 $ 20 0 7 1 6 , 1 3 3 $ 1 , 8 5 0 $ 6 4 5 $ 1 8 , 6 2 8 $ 2 3 . 2 5 % 1 . 7 6 9 4 $ 20 0 8 1 5 , 7 2 7 $ 2 , 0 3 9 $ 5 2 6 $ 1 8 , 2 9 2 $ 2 1 . 2 7 % 1 . 6 3 5 7 $ 20 0 9 1 5 , 3 0 3 $ 2 , 1 1 6 $ 2 1 2 $ 1 7 , 6 3 1 $ 2 0 . 5 1 % 1 . 6 5 1 2 $ 20 1 0 1 4 , 8 4 7 $ 1 , 6 5 8 $ 3 1 6 $ 1 6 , 8 2 1 $ 1 8 . 9 1 % 1 . 5 7 5 3 $ 20 1 1 1 4 , 8 9 6 $ 1 , 1 3 5 $ 2 2 7 $ 1 6 , 2 5 8 $ 1 7 . 8 8 % 1 . 3 9 4 7 $ 20 1 2 1 4 , 5 2 4 $ 8 4 0 $ 1 4 1 $ 1 5 , 5 0 5 $ 1 6 . 0 4 % 1 . 1 4 2 1 $ 20 1 3 1 3 , 7 6 7 $ 5 8 7 $ 9 6 $ 1 4 , 4 5 0 $ 1 4 . 3 5 % 1 . 0 4 8 8 $ 20 1 4 1 2 , 6 2 5 $ 3 8 7 $ 4 9 $ 1 3 , 0 6 1 $ 1 2 . 5 1 % 0 . 9 5 8 7 $ Go v e r n m e n t a l  Ac t i v i t i e s CI T Y  OF  SO U T H  MI A M I ,  FL O R I D A   RA T I O S  OF  GE N E R A L  BO N D E D  DE B T  OU T S T A N D I N G     LA S T  TE N  FI S C A L  YE A R S *  (A M O U N T S  EX P R E S S E D  IN  TH O U S A N D S )      81 Table 10 Pe r c e n t a g e Le s s : o f  Es t i m a t e d Am o u n t s A c t u a l Av a i l a b l e T a x a b l e in  De b t V a l u e  of P e r Fi s c a l R e v e n u e S e r v i c e P r o p e r t y C a p i t a Ye a r B o n d s R e s e r v e s T o t a l ( 1 ) ( 2 ) 20 0 5 8 , 2 7 0 $ 1 5 5 $ 8 , 1 1 5 $ 0 . 6 7 % 0 . 7 5 3 6 $ 20 0 6 8, 1 1 5 $ 16 0 $ 7, 9 5 5 $ 0 . 5 5 % 0 . 7 3 0 4 $ 20 0 7 1 6 , 1 3 3 $ 1 6 5 $ 1 5 , 9 6 8 $ 0 . 9 6 % 1 . 5 1 6 7 $ 20 0 8 1 5 , 7 2 7 $ 2 7 5 $ 1 5 , 4 5 2 $ 0 . 9 1 % 1 . 3 8 1 7 $ 20 0 9 1 5 , 3 0 3 $ 2 2 9 $ 1 5 , 0 7 4 $ 0 . 9 8 % 1 . 4 1 1 7 $ 20 1 0 1 4 , 8 4 7 $ 2 5 0 $ 1 4 , 5 9 7 $ 1 . 0 3 % 1 . 3 6 7 0 $ 20 1 1 1 4 , 8 9 6 $ 2 7 9 $ 1 4 , 6 1 7 $ 1 . 0 3 % 1 . 2 5 3 9 $ 20 1 2 1 4 , 5 2 4 $ 1 , 0 8 6 $ 1 3 , 4 3 8 $ 0 . 9 4 % 0 . 9 8 9 8 $ 20 1 3 1 3 , 7 6 7 $ 8 0 3 $ 1 2 , 9 6 4 $ 0 . 9 0 % 0 . 9 4 0 9 $ 20 1 4 1 2 , 6 2 5 $ 4 5 1 $ 1 2 , 1 7 4 $ 0 . 8 2 % 0 . 8 9 3 6 $ No t e : D e t a i l s r e g a r d i n g t h e C i t y ' s o u t s t a n d i n g d e b t c a n b e f o u n d i n t h e n o t e s t o t h e fi n a n c i a l s t a t e m e n t s . No t e : T o t a l a d j u s t e d t a x l e v y i s b a s e d o n f i n a l a s s e s s e d p r o p e r t y v a l u e s b y M i a m i - D a d e Co u n t y D e p a r t m e n t o f P r o p e r t y A p p r a i s a l O f f i c e a f t e r t h e P r o p e r t y A p p r a i s a l Ad j u s t m e n t B o a r d h a s c o m p l e t e d h e a r i n g s o n t h e t a x r o l l ; a n d b e f o r e d i s c o u n t s . (1 ) S e e T a b l e 5 - A s s e s s e d V a l u e a n d E s t i m a t e d A c t u a l V a l u e o f T a x a b l e P r o p e r t y . (2 ) S e e T a b l e 1 3 - D e m o g r a p h i c a n d E c o n o m i c S t a t i s t i c s . CI T Y  OF  SO U T H  MI A M I ,  FL O R I D A   DI R E C T  AN D  OV E R L A P P I N G  GO V E R N M E N T A L  AC T I V I T I E S  DE B T     SE P T E M B E R  30 ,  20 1 4  (A M O U N T S  EX P R E S S E D  IN  TH O U S A N D S )      82 Table 11 Es t i m a t e d A m o u n t Ne t P e r c e n t a g e A p p l i c a b l e De b t A p p l i c a b l e t o  South Go v e r n m e n t  Un i t Ou t s t a n d i n g ( 1 ) M i a m i Mi a m i - D a d e C o u n t y S c h o o l s ( 2 ) 4 0 7 , 6 9 3 $ 0 . 7 0 % 2 , 8 6 7 $ Mi a m i - D a d e C o u n t y ( 3 ) 1 , 2 9 3 , 3 6 5 0 . 7 0 % 9 , 0 9 5 Su b t o t a l o v e r l a p p i n g d e b t 1 , 7 0 1 , 0 5 8 1 1 , 9 6 2 Ci t y o f S o u t h M i a m i d i r e c t d e b t 1 3 , 0 6 1 1 0 0 . 0 0 % 1 3 , 0 6 1 To t a l d i r e c t a n d o v e r l a p p i n g d e b t 1 , 7 1 4 , 1 1 9 $ 2 5 , 0 2 3 $ So u r c e s : ( 1 ) T h e p e r c e n t a g e o f o v e r l a p p i n g d e b t a p p l i c a b l e i s e s t i m a t e d u s i n g t a x a b l e a s s e s s e d pr o p e r t y v a l u e s . A p p l i c a b l e p e r c e n t a g e s w e r e e s t i m a t e d b y d e t e r m i n i n g t h e p o r t i o n o f th e C o u n t y ' s t a x a b l e a s s e s s e d v a l u e t h a t i s wi t h i n t h e C i t y ' s b o u n d a r i e s a n d d i v i d i n g i t by t h e C o u n t y ' s t o t a l t a x a b l e a s s e s s e d v a l u e . (2 ) M i a m i - D a d e C o u n t y S c h o o l s , G e n e r a l F i n a n c e D e p a r t m e n t . (3 ) M i a m i - D a d e C o u n t y , F i n a n c e D e p a r t m e n t ; i n c l u d e s G e n e r a l O b l i g a t i o n a n d S p e c i a l Ob l i g a t i o n B o n d s . CI T Y  OF  SO U T H  MI A M I ,  FL O R I D A   LE G A L  DE B T  MA R G I N  IN F O R M A T I O N     LA S T  TE N  FI S C A L  YE A R S *  (A M O U N T S  EX P R E S S E D  IN  TH O U S A N D S )      83 Table 12 20 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 De b t l i m i t 1 8 1 , 8 1 4 $ 2 1 6 , 9 0 4 $ 2 4 9 , 7 6 5 $ 2 5 3 , 6 4 3 $ 2 2 9 , 1 1 6 $ 2 1 3 , 3 9 4 $ 2 1 2 , 0 6 6 $ 2 1 4 , 0 2 6 $ 2 1 5 , 0 0 1 $ 222,090$ To t a l n e t d e b t a p p l i c a b l e t o l i m i t ( 1 ) 8 , 2 7 0 8 , 1 1 5 1 6 , 1 3 3 1 5 , 7 2 7 1 5 , 3 0 3 1 4 , 8 4 7 1 4 , 8 9 6 1 4 , 5 2 4 1 3 , 7 6 7 1 2 , 6 2 5 Le g a l d e b t m a r g i n 1 7 3 , 5 4 4 $ 2 0 8 , 7 8 9 $ 2 3 3 , 6 3 2 $ 2 3 7 , 9 1 6 $ 2 1 3 , 8 1 3 $ 1 9 8 , 5 4 7 $ 1 9 7 , 1 7 0 $ 1 9 9 , 5 0 2 $ 2 0 1 , 2 3 4 $ 209,465$ To t a l n e t d e b t a p p l i c a b l e t o t h e l i m i t a s a p e r c e n t a g e o f d e b t l i m i t 4 . 5 5 % 3 . 7 4 % 6 . 4 6 % 6 . 2 0 % 6 . 6 8 % 6 . 9 6 % 7 . 0 2 % 6 . 7 9 % 6 . 4 0 % 5 . 6 8 % (1 ) R e v e n u e B o n d s w e r e i s s u e d i n f i s c a l y e a r 2 0 0 2 a n d 2 0 0 7 . I n N o v e m b e r 2 0 0 6 , t h e C i t y t h r o u g h i t s C o m m u n i t y D e v e l o p m e n t A g e n c y i s s u e d $ 2 , 7 3 0 , 0 0 0 o f T a x a b l e R e d e v e l o p m e n t R e v e n u e B o n d s . Le g a l D e b t M a r g i n C a l c u l a t i o n f o r F i s c a l Y e a r 2 0 1 4 As s e s s e d v a l u a t i o n o f t a x a b l e r e a l a n d p e r s o n a l p r o p e r t y 1 , 4 8 0 , 6 0 1 $ Bo n d e d d e b t l i m i t - 1 5 % o f a s s e s s e d v a l u e 2 2 2 , 0 9 0 $ To t a l a d v a l o r e m d e b t - R e v e n u e B o n d s 1 2 , 6 2 5 $ Am o u n t o f d e b t a p p l i c a b l e 1 2 , 6 2 5 Le g a l d e b t m a r g i n 2 0 9 , 4 6 5 $ CI T Y  OF  SO U T H  MI A M I ,  FL O R I D A   DE M O G R A P H I C  AN D  EC O N O M I C  ST A T I S T I C S     LA S T  TE N  FI S C A L  YE A R S      84 Table 13 Pe r s o n a l In c o m e (A m o u n t s P e r  Ca p i t a Ex p r e s s e d  in P e r s o n a l M e d i a n S c h o o l U n e m p l o y m e n t Fi s c a l P o p u l a t i o n T h o u s a n d s ) I n c o m e A g e E n r o l l m e n t R a t e Ye a r ( 1 ) ( 2 ) ( 2 ) ( 2 ) ( 3 ) ( 4 ) 20 0 5 1 0 , 7 6 8 7 0 , 5 1 4 $ 2 9 , 9 5 5 $ 3 7 . 4 1 , 7 0 8 4 . 5 20 0 6 1 0 , 8 9 1 7 4 , 5 3 4 $ 3 1 , 3 4 7 $ 3 7 . 4 1, 7 0 8 3 . 8 20 0 7 1 0 , 5 2 8 8 0 , 1 1 2 $ 3 3 , 7 1 2 $ 3 7 . 8 6 , 1 2 3 3 . 8 20 0 8 1 1 , 1 8 3 8 5 , 9 7 9 $ 3 6 , 0 8 1 $ 3 8 . 2 5 , 9 5 7 5 . 8 20 0 9 1 0 , 6 7 8 8 5 , 9 7 9 $ 2 9 , 6 8 9 $ 4 0 . 7 5 , 7 0 1 1 1 . 8 20 1 0 1 0 , 6 7 8 8 8 , 9 5 5 $ 2 9 , 6 8 9 $ 4 0 . 7 3 , 5 0 0 1 2 . 1 20 1 1 1 1 , 6 5 7 9 0 , 9 1 5 $ 3 6 , 3 5 7 $ 4 0 . 7 3 , 4 5 0 1 2 . 3 20 1 2 1 3 , 5 7 6 9 6 , 6 5 8 $ 3 7 , 8 3 4 $ 3 6 . 7 3 , 3 9 7 8 . 8 20 1 3 1 3 , 7 7 8 1 0 0 , 6 8 9 $ 3 8 , 8 6 0 $ 3 6 . 7 3 , 4 2 0 6 . 7 20 1 4 1 3 , 6 2 3 1 0 4 , 3 7 3 $ 3 9 , 8 8 0 $ 3 7 . 1 3 , 3 7 2 6 . 5 So u r c e : ( 1 ) B u r e a u o f E c o n o m i c a n d B u s i n e s s R e s e a r c h - U n i v e r s i t y o f F l o r i d a (2 ) U . S . D e p a r t m e n t o f C o m m e r c e , B u r e a u o f E c o n o m i c A n a l y s i s a n d B e s t p l a c e s . n e t / c i t y / S o u t h _ M i a m i . (3 ) M i a m i - D a d e C o u n t y P u b l i c S c h o o l s R e g i s t r a r ' s O f f i c e ( d o e s n o t i n c l u d e p r i v a t e s c h o o l s ) . (4 ) M i a m i D a d e C o u n t y L a b o r M a r k e t R e p o r t CI T Y  OF  SO U T H  MI A M I ,  FL O R I D A   PR I N C I P A L  EM P L O Y E R S  – MI A M I ‐DA D E  CO U N T Y ,  FL O R I D A     CU R R E N T  YE A R  AN D  SI X  YE A R S  AG O      85 Table 14 Pe r c e n t a g e Percentage of  To t a l o f  Total Co u n t y C o u n t y Em p l o y e r E m p l o y e e s R a n k E m p l o y m e n t E m p l o y e e s R a n k E m p l o y m e n t Mi a m i - D a d e C o u n t y P u b l i c S c h o o l s 3 3 , 4 7 7 1 2 . 8 3 % 5 0 , 0 0 0 1 4 . 2 7 % Mi a m i - D a d e C o u n t y , F l o r i d a 2 5 , 5 0 2 2 2 . 1 6 % 3 2 , 0 0 0 2 2 . 7 3 % Fe d e r a l G o v e r n m e n t 1 9 , 2 0 0 3 1 . 6 2 % 2 0 , 4 0 0 3 1 . 7 4 % Fl o r i d a S t a t e g o v e r n m e n t 1 7 , 1 0 0 4 1 . 4 5 % 1 7 , 0 0 0 4 1 . 4 5 % Un i v e r s i t y o f M i a m i 1 2 , 8 1 8 5 1 . 0 8 % 9 , 8 7 4 8 0 . 8 4 % Ba p t i s t H e a l t h S o u t h F l o r i d a 1 1 , 3 5 3 6 0 . 9 6 % 1 0 , 8 2 6 6 0 . 9 2 % Am e r i c a n A i r l i n e s 1 1 , 0 3 1 7 0 . 9 3 % 9 , 0 0 0 9 0 . 9 0 % Ja c k s o n H e a l t h S y s t e m 9 , 7 9 7 8 0 . 8 3 % 1 0 , 5 0 0 7 0 . 9 4 % Pu b l i x S u p e r M a r k e t s 4 , 6 0 4 9 0 . 3 9 % 1 1 , 0 0 0 5 0 . 7 7 % Ci t y o f M i a m i 3 , 9 9 7 1 0 0 . 3 4 % - - 0.00% Mi a m i D a d e C o l l e g e - - - 6 , 5 0 0 1 0 0 . 5 5 % 14 8 , 8 7 9 1 2 . 6 0 % 1 7 7 , 1 0 0 1 5 . 1 1 % So u r c e : T h e B e a c o n C o u n c i l . Mi a m i D a d e C o u n t y L a b o r M a r k e t R e p o r t 20 1 4 2 0 0 8 CI T Y  OF  SO U T H  MI A M I ,  FL O R I D A   FU L L ‐TI M E  EQ U I V A L E N T  CI T Y  GO V E R N M E N T  EM P L O Y E E S  BY  FU N C T I O N      LA S T  TE N  FI S C A L  YE A R S      86 Table 15 20 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 FU N C T I O N : Ge n e r a l g o v e r n m e n t 1 7 2 0 2 7 2 9 3 0 2 8 2 5 1 8 2 1 2 1 Pu b l i c s a f e t y : P o l i c e : O f f i c e r s 4 9 4 9 5 1 4 5 4 9 4 9 5 1 5 1 4 8 5 0 C i v i l i a n s 9 6 7 8 8 7 9 9 8 9 Bu i l d i n g a n d z o n i n g 1 3 1 8 1 7 1 6 1 8 1 6 1 7 1 4 1 2 4 Public w o r k s 1 9 2 4 2 6 2 5 2 4 2 6 2 3 2 5 2 4 1 7 Re c r e a t i o n a n d s o c i a l s e r v i c e s 3 2 2 5 9 1 5 1 4 1 3 1 0 1 0 1 0 1 0 Sanitation 1 2 1 0 1 0 1 0 1 0 9 9 9 9 1 1 To t a l 1 5 1 1 5 2 1 4 7 1 4 8 1 5 3 1 4 8 1 4 4 1 3 6 1 3 2 1 2 2 So u r c e : C i t y o f S o u t h M i a m i F i n a n c e D e p a r t m e n t CI T Y  OF  SO U T H  MI A M I ,  FL O R I D A   OP E R A T I N G  IN D I C A T O R S  BY  FU N C T I O N     LA S T  TE N  FI S C A L  YE A R S      87 Table 16 20 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 FU N C T I O N / P R O G R A M : Pu b l i c s a f e t y : P o l i c e : N u m b e r o f c a l l s a n s w e r e d 1 1 , 0 0 5 1 1 , 52 6 1 1 , 1 3 6 1 0 , 6 5 5 1 1 , 2 7 4 1 0 , 8 9 3 1 1 , 6 0 9 1 1 , 7 4 4 1 0 , 4 0 9 10,409 N u m b e r o f a r r e s t s 1 , 4 8 4 2 , 5 3 0 6 5 0 5 5 1 7 6 5 6 1 6 5 9 1 3 8 3 4 5 9 463 N u m b e r o f u n i f o r m e d o f f i c e r s 4 9 4 9 5 1 4 5 4 9 4 9 5 1 5 0 4 8 50 Bu i l d i n g a n d z o n i n g : N u m b e r o f b u i l d i n g p e r m i t s i s s u e d 1 , 7 5 4 1, 9 2 7 1 , 6 2 9 1 , 3 5 0 1 , 1 5 8 1 , 1 4 1 1 , 2 6 1 1 , 2 9 3 1 , 4 0 3 1,447 L i c e n s e / p e r m i t r e v e n u e g e n e r a t e d 1 , 1 0 1 , 1 2 0 $ 1 , 2 0 1 , 9 4 8 $ 1 , 1 0 2 , 0 8 3 $ 1 , 6 8 9 , 2 4 1 $ 1 , 0 7 5 , 7 1 0 $ 1 , 0 9 9 , 9 6 3 $ 1 , 5 7 0 , 0 4 5 $ 1 , 3 0 7 , 2 6 9 $ 1 , 6 6 6 , 6 6 6 $ 1,710,597$ O c c u p a t i o n a l l i c e n s e s i s s u e d 2 , 9 0 2 3 , 02 4 3 , 1 1 2 3 , 0 7 6 3 , 1 3 2 3 , 4 5 0 3 , 7 5 0 3 , 3 3 5 3 , 3 5 6 3,372 Cu l t u r e a n d r e c r e a t i o n : N u m b e r o f s e n i o r m e a l s s e r v e d 3 2 , 7 3 0 4 2 ,9 4 9 3 8 , 5 2 2 3 0 , 7 1 2 3 5 , 7 7 6 2 8 , 42 0 2 7 , 3 0 0 2 7 , 6 1 2 2 7 , 7 3 2 24,968 R e c r e a t i o n r e v e n u e s c o l l e c t e d 7 9 , 2 0 9 $ 7 6 , 1 2 9 $ 9 4 , 1 7 6 $ 1 3 8 , 4 5 6 $ 1 8 4 , 1 9 6 $ 2 4 1 , 9 1 9 $ 1 9 9 , 1 4 7 $ 2 3 3 , 6 2 4 $ 2 0 0 , 7 0 0 $ 260,017$ Sa n i t a t i o n : R e f u s e c o l l e c t e d ( t o n s p e r m o n t h ) 1 , 1 1 4 1 , 3 4 8 8 0 8 8 3 9 7 7 7 7 2 2 7 5 1 7 9 8 8 4 3 840 So u r c e s : V a r i o u s C i t y d e p a r t m e n t s No t e : I n d i c a t o r s a r e n o t a v a i l a b l e f o r t h e g e n e r a l g o v e r n m e n t f u n c t i o n CI T Y  OF  SO U T H  MI A M I ,  FL O R I D A   CA P I T A L  AS S E T  ST A T I S T I C S  BY  FU N C T I O N / P R O G R A M     LA S T  TE N  FI S C A L  YE A R S      88 Table 17 20 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 FU N C T I O N / P R O G R A M : Pu b l i c s a f e t y : P o l i c e : P o l i c e s t a t i o n s 1 1 1 1 1 1 1 1 1 1 P o l i c e v e h i c l e s 7 6 6 9 6 2 6 2 6 7 6 2 6 2 6 4 6 4 6 4 Pu b l i c w o r k s : S t r e e t s ( m i l e s - p a v e d ) 4 7 . 4 1 4 7 . 4 1 4 7 . 4 1 4 7 . 4 1 4 6 . 8 0 4 6 . 8 0 4 6 . 8 0 4 6 . 8 0 4 6 . 8 0 4 6 . 8 0 Cu l t u r e a n d r e c r e a t i o n : P a r k s 8 1 0 1 0 1 0 1 0 1 2 1 2 1 2 1 1 1 4 T e n n i s c o u r t s N / A 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 B a s e b a l l / f o o t b a l l f i e l d s N / A 6 7 7 7 7 7 7 7 7 Sa n i t a t i o n : N u m b e r o f c o l l e c t i o n t r u c k s 1 5 1 8 1 5 1 4 1 4 1 4 1 4 1 4 1 4 1 4 So u r c e s : V a r i o u s C i t y d e p a r t m e n t s No t e : I n d i c a t o r s a r e n o t a v a i l a b l e f o r t h e g e n e r a l g o v e r n m e n t f u n c t i o n N/ A : I n f o r m a t i o n n o t a v a i l a b l e f o r t h e s e y e a r s . COMPLIANCE SECTION 89 Report of Independent Auditor 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  To the Honorable Mayor, Members of the City Commission and City Manager City of South Miami, 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, each major fund, and the aggregate remaining fund information of the City of South Miami, Florida (the "City"), as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated March 25, 2015. Our report includes a reference to other auditors who audited the financial statements of the Police Officers Retirement Trust Fund – Section 185 Plan, as described in our report on the City’s financial statements. This report does not include the results of the other auditor’s testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditor. 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. 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. 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. 90 Compliance and Other Matters   As part of obtaining reasonable assurance about whether the City's financial statements are free of 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 entity’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. Orlando, Florida March 25, 2015 91 Report of Independent Auditor on Compliance  for Each Major Federal Program and on Internal Control Over  Compliance Required by OMB Circular A‐133  To the Honorable Mayor, Members of the City Commission and City Manager City of South Miami, Florida Report on Compliance for Each Major Federal Program   We have audited the City of South Miami, Florida’s (the “City”) compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on the City’s major federal program for the year ended September 30, 2014. The City’s major federal program is identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility  Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor’s Responsibility  Our responsibility is to express an opinion on compliance for the City’s major federal program based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the City’s compliance. Opinion on Each Major Federal Program   In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended September 30, 2014. 92 Report on Internal Control Over Compliance  Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A- 133. Accordingly, this report is not suitable for any other purpose. Orlando, Florida March 25, 2015   CITY OF SOUTH MIAMI, FLORIDA  SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS    FOR THE YEAR ENDED SEPTEMBER 30, 2014      93 Federal Grantor/ Pass‐ThroughFederalPass‐ThroughFederal (Direct  Grantor/ProgramCFDAGrantor'sand Pass‐Through) Program TitleNumberNumberExpenditures U.S. Department of Housing and Urban Development Passed through Miami-Dade County Community Development Block Grant 14.218IDIS# 32451,201,361$ Community Development Block Grant 14.218IDIS# 5217102,772 Total 1,304,133 U.S. Department of Justice Bureau of Justice Assistance Bulletproof Vest Partnership Program 16.607N/A885 Edward Byne Memorial Justice Assistance Grant Program (Byrne-JAG)16.738N/A2,452 Passed through Florida Department of Law Enforcement Edward Byne Memorial Justice Assistance Grant Program (Byrne-JAG)16.7385,521 Total 8,858 Total expenditures of federal awards1,312,991$ 2014-JAGD- DADE-5-E6-I30   CITY OF SOUTH MIAMI, FLORIDA  NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS    FOR THE YEAR ENDED SEPTEMBER 30, 2014      94 Note 1 – BASIS OF PRESENTATION  The accompanying schedule of expenditures of federal awards includes federal grant activity of the City and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with accounting principles generally accepted in the United States of America as applicable to governmental units and the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Note 2 – CONTINGENCIES  Expenditures incurred by the City associated with the execution of various grants are subject to audit and possible disallowance by the grantor agencies. The City would be held responsible for recovery (reimbursement to the grantor agency) of disallowed amounts. Management believes that, if audited, any adjustment for disallowed expenditures would be immaterial.   CITY OF SOUTH MIAMI, FLORIDA  SCHEDULE OF FINDINGS AND QUESTIONED COSTS    FOR THE YEAR ENDED SEPTEMBER 30, 2014      95 Section I – Summary of Auditor’s Results Financial Statements Type of auditor’s report issued: Unmodified Internal control over financial reporting:  Material Weaknesses identified? yes X no  Significant deficiency(s) identified that are not considered to be material weaknesses? yes X none reported  Noncompliance material to financial statements noted? yes X no Federal Awards Internal control over major federal programs:  Material weaknesses identified? yes X no  Significant deficiency(s) identified that are not considered to be material weaknesses? yes X none reported  Noncompliance material to federal awards noted? yes X no Type of auditor’s report issued on compliance for major federal program: Unmodified Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of Circular A-133 yes X no Identification of major federal programs: CFDA# Program Name 14.218 Community Development Block Grant II. – Findings Related to the Audit of the Basic Financial Statements of the City None reported. III. – Findings and Questioned Costs Related to the Audit of Federal Awards None reported. 96 Management Letter in Accordance with the Rules of the   Auditor General of the State of Florida  To the Honorable Mayor, Members of the City Commission and City Manager City of South Miami, Florida Report on the Financial Statements   We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of South Miami, Florida (the “City”), as of and for the fiscal year ended September 30, 2014, and have issued our report thereon dated March 25, 2015. Our report includes a reference to another auditor who audited the financial statements of the Police Officers Retirement Trust Fund – Section 185 Plan, as described in our report on the City’s financial statements. This report does not include the results of the other auditor’s testing of internal control over financial reporting or compliance and other matters that are reported on separately by that auditor. Auditor’s Responsibility   We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations; and Chapter 10.550, Rules of the Florida Auditor General. Other Reports and Schedule   We have issued our Report of Independent Auditor 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; Report of Independent Auditor on Compliance for Each Major Federal Program and on Internal Control Over Compliance Required by OMB Circular A-133; Schedule of Findings and Questioned Costs; and Report of Independent Accountant on Compliance with Local Government Investment Policies. Disclosures in those reports, which are dated March 25, 2015, should be considered in conjunction with this management letter. Prior Audit Findings   Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. All recommendations made in the preceding report have been addressed. Official Title and Legal Authority   Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. Refer to Note I in the notes to the financial statements regarding the creation of the City of South Miami, Florida. The City of South Miami, Florida included the following component unit: The South Miami Community Redevelopment Agency was established under the authority granted by the Florida Statute 163, Section III. It was created by the City of South Miami Ordinance Number 12-97-1633 on April 15, 1997. 97 Financial Condition   Section 10.554(1)(i)5.a., Rules of the Auditor General, requires that we report the results of our determination as to whether or not the City has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit of the financial statements of the City, the results of our tests did not indicate the City met any of the specified conditions of a financial emergency contained in Section 218.503(1), Florida Statutes. Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures. It is management’s responsibility to monitor the City’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 management. Annual Financial Report   Section 10.554(1)(i)5.b., Rules of the Auditor General, requires that we report the results of our determination as to whether the annual financial report for the City for the fiscal year ended September 30, 2014, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2014. Our comparison of these two reports resulted in no material differences. Special District Component Units  Section 10.554(1)(i)5.d, Rules of the Auditor General, requires that we determine whether or not a special district that is a component unit of a county, municipality, or special district, provided the financial information necessary for proper reporting of the component unit, within the audited financial statements of the county, municipality, or special district in accordance with Section 218.39(3)(b), Florida Statutes. In connection with our audit, we determined that all special district component units provided the necessary information for proper reporting in accordance with Section 218.39(3)(b), Florida Statutes. Other Matters   Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter   The purpose of this management letter is to communicate certain matters prescribed by Chapter 10.550, Rules of the Auditor General. Accordingly, this management letter is not suitable for any other purpose. Orlando, Florida March 25, 2015 98 Report of Independent Accountant on Compliance  With Local Government Investment Policies     To the Honorable Mayor, Members of the City Commission and City Manager City of South Miami, Florida Report on Compliance  We have examined the City of South Miami, Florida’s (the “City”) compliance with the local government investment policy requirements of 218.415, Florida Statutes, during the year ended September 30, 2014. Management is responsible for the City’s compliance with those requirements. Our responsibility is to express an opinion on the City’s compliance based on our examination. Scope  Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the City’s compliance with specified requirements. Opinion  In our opinion, the City complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2014. Orlando, Florida March 25, 2015