Of the For The 30, 2015 - FLAuditor.gov rpts/2015 sunny... · 2019-11-03 · Balance r Budget and Actual r General Capital Projects Fund 66 Schedule of Revenues, Expenditures and

Comprehensive Annual Financial Report

Of the City of Sunny Isles Beach, Florida

For The Fiscal Year Ended September 30, 2015

Prepared by theFinance Department

City of Sunny Isles Beach, Florida

Table of Contents

Introductory Section

Letter of Transmittal i ix

Certificate of Achievement for Excellence in Financial Reporting x

Organizational Chart xi

List of City Officials xii

Financial Section

Independent Auditor’s Report 1 3

Management's Discussion and Analysis (Unaudited) 4 14

Basic Financial Statements:

Government wide Financial Statements:

Statement of Net Position 15

Statement of Activities 16

Fund Financial Statements:

Balance Sheet Governmental Funds 17 18

Reconciliation of the Balance Sheet of Governmental Funds tothe Statement of Net Position 19

Statement of Revenues, Expenditures and Changes in Fund BalancesGovernmental Funds 20

Reconciliation of the Statement of Revenues, Expenditures and Changesin Fund Balances of Governmental Funds to the Statement of Activities 21

Statement of Net Position Proprietary Fund 22

Statement of Revenues, Expenses and Changes in Net PositionProprietary Fund 23

Statement of Cash Flows Proprietary Fund 24

Notes to Basic Financial Statements 25 51


Table of Contents(continued)

Required Supplementary Information:

Budgetary Comparison Schedules:

Schedule of Revenues, Expenditures and Changes in FundBalance Budget and Actual General Fund 52 53

Notes to Budgetary Comparison Schedules 54

Schedule of Funding Progress Other Post Employment Benefits (Unaudited) 55

Schedule of Proportionate Share of Net Pension LiabilityFlorida Retirement System Pension Plan (Unaudited) 56

Schedule of Proportionate Share of Net Pension LiabilityRetiree Health Insurance Subsidy Program (Unaudited) 57

Schedule of Contributions Florida Retirement System Pension Plan (Unaudited) 58

Schedule of Contributions Retiree Health Insurance Subsidy Program (Unaudited) 59

Schedule of Investment Returns Florida Retirement System Pension Plan (Unaudited) 60

Schedule of Investment Returns Retiree Health Insurance Subsidy Program (Unaudited) 61

Other Financial Information:

Combining and Individual Fund Financial Statements and Schedules:

Combining Balance Sheet Nonmajor Governmental Funds 62

Combining Statement of Revenues, Expenditures and ChangesIn Fund Balances Nonmajor Governmental Funds 63

Budgetary Comparison Schedules:

Schedule of Revenues, Expenditures and Changes in FundBalance Budget and Actual Street Maintenance andConstruction Fund 64

Schedule of Revenues, Expenditures and Changes in FundBalance Budget and Actual Building Fund 65

Schedule of Revenues, Expenditures and Changes in FundBalance Budget and Actual General Capital Projects Fund 66

Schedule of Revenues, Expenditures and Changes in FundBalance Budget and Actual Public Art Trust Fund 67

Statistical Section

Table 1 Net Position by Component 68

Table 2 Changes in Net Position 69 71


Table of Contents(continued)

Table 3 Fund Balances of Governmental Funds 72

Table 4 Changes in Fund Balances of Governmental Funds 73 74

Table 5 General Governmental Tax Revenues by Source 75

Table 6 Assessed Value and Estimated Actual Value of Taxable Property 76

Table 7 Property Tax Rates 77 78

Table 8 Principal Property Taxpayers 79

Table 9 Property Tax Levies and Collections 80

Table 10 Ratios of Outstanding Debt by Type 81

Table 11 Direct and Overlapping Governmental Activities Debt 82

Table 12 Legal Debt Margin Information 83

Table 13 Pledged Revenue Coverage 84

Table 14 Demographic and Economic Statistics 85

Table 15 Principal Employers 86

Table 16 Full Time Equivalent City Government Employees by Function 87

Table 17 Operating Indicators by Function 88

Table 18 Capital Asset Statistics by Function 89

Compliance Section

Independent Auditor’s Report on Internal Control over Financial Reportingand on Compliance and Other Matters Based on an Audit of FinancialStatements Performed in Accordance with Government Auditing Standards 90 91

Independent Auditor’s Report on Compliance for Each Major Federal ProgramAnd State Project and on Internal Control Over Compliance Required byOMB Circular A 133 and Chapter 10.550, Rules of the Auditor General 92 93

Independent Auditor’s Report to City Management 94 95

Independent Auditor’s Report on Compliance with Section 218.415, Florida Statutes 96

Schedule of Expenditures of Federal Awards and State Financial Assistance 97

Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance 98

Schedule of Findings and Questioned Costs 99 100

INTRODUCTORY SECTION

x

xi

xii

City of Sunny Isles Beach, FloridaCITY OFFICIALS

As of September 30, 2015

CITY COMMISSION

George “Bud” Scholl MayorJeanette Gatto Vice Mayor

Isaac AelionJennifer LevinDana Goldman

CITY MANAGER

Christopher J. Russo

CITY ATTORNEY

Hans Ottinot

CITY CLERK

Jane A. Hines, M.M.C.

FINANCE DIRECTOR

Audra Curts Whann, C.P.A.

CITY AUDITORS

Keefe McCullough

FINANCIAL SECTION

INDEPENDENT AUDITOR’S REPORT

KMCcpa.com | 6550 N Federal Hwy, 4th Floor Fort Lauderdale, FL 33308 Phone: 954.771.0896 Fax: 954.938.9353

1

INDEPENDENT AUDITOR’S REPORT

To the Honorable Mayor,City Commission and City ManagerCity of Sunny Isles Beach, Florida

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the businesstype activities, each major fund and the aggregate remaining fund information of the City of SunnyIsles Beach, Florida (the “City”) as of and for the fiscal year ended September 30, 2015, and the relatednotes to the financial statements, which collectively comprise the City's basic financial statements aslisted 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 inaccordance with accounting principles generally accepted in the United States of America; this includesthe design, implementation, and maintenance of internal control relevant to the preparation and fairpresentation of financial statements that are free from material misstatement, whether due to fraudor error.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. Weconducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica 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 andperform the audit to obtain reasonable assurance about whether the financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements. The procedures selected depend on the auditor’s judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers internal control relevant to the entity’spreparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonableness ofsignificant accounting estimates made by management, as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinions.

2


Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, therespective financial position of the governmental activities, the business type activities, each majorfund and the aggregate remaining fund information of the City, as of September 30, 2015, and therespective changes in financial position and, where applicable, cash flows thereof for the year thenended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that themanagement’s discussion and analysis and schedules related to pensions and other post employmentbenefits, on pages 4 through 14 and pages 55 through 61, respectively, be presented to supplementthe 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 partof financial reporting for placing the basic financial statements in an appropriate operational,economic, or historical context. We have applied certain limited procedures to the requiredsupplementary information in accordance with auditing standards generally accepted in the UnitedStates of America, which consisted of inquiries of management about the methods of preparing theinformation and comparing the information for consistency with management’s responses to ourinquiries, the basic financial statements, and other knowledge we obtained during our audit of thebasic financial statements. We do not express an opinion or provide any assurance on the informationbecause the limited procedures do not provide us with sufficient evidence to express an opinion orprovide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements thatcollectively comprise the City’s basic financial statements. The introductory section, combining andindividual nonmajor fund financial statements, budgetary comparison information, other financialinformation and statistical section, are presented for purposes of additional analysis and are not arequired part of the basic financial statements. The schedule of expenditures of federal awards andstate financial assistance is presented for purposes of additional analysis as required by U.S. Office ofManagement and Budget Circular A 133, Audits of States, Local Governments and Non ProfitOrganizations, and is also not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements, budgetary comparison information,other financial information and the schedule of expenditures of federal awards and state financialassistance are the responsibility of management and were derived from and relate directly to theunderlying accounting and other records used to prepare the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the audit of the basic financialstatements and certain additional procedures, including comparing and reconciling such informationdirectly to the underlying accounting and other records used to prepare the basic financial statementsor to the basic financial statements themselves, and other additional procedures in accordance withauditing standards generally accepted in the United States of America. In our opinion, the combiningand individual nonmajor fund financial statements, budgetary comparison information, other financialinformation and the schedule of expenditures of federal awards and state financial assistance are fairlystated 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 inthe audit of the basic financial statements and, accordingly, we do not express an opinion or provideany assurance them.

3


Other Reports Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated May 4, 2016on our consideration of the City's internal control over financial reporting and on our tests of itscompliance with certain provisions of laws, regulations, contracts, and grant agreements and othermatters. The purpose of that report is to describe the scope of our testing of internal control overfinancial reporting and compliance and the results of that testing, and not to provide an opinion oninternal control over financial reporting or on compliance. That report is an integral part of an auditperformed in accordance with Government Auditing Standards in considering the City’s internal controlover financial reporting and compliance.

KEEFE McCULLOUGH

Fort Lauderdale, FloridaMay 4, 2016

MANAGEMENT’S DISCUSSION AND ANALYSIS(MD&A)

4

City of Sunny Isles Beach, FloridaManagement’s Discussion and AnalysisSeptember 30, 2015

As management of the City of Sunny Isles Beach, we offer readers of the City of Sunny Isles Beachfinancial statements this narrative overview and analysis of the financial activities of the City ofSunny Isles Beach for the fiscal year ended September 30, 2015. We encourage readers to considerthe information presented here in conjunction with additional information that we have furnishedin our letter of transmittal which can be found on pages i through x of this report. All amounts inthis section, unless otherwise indicated, are expressed in millions of dollars.

Financial Highlights

The assets of the City of Sunny Isles Beach exceeded its liabilities at the close of themost recent fiscal year by $ 197.4 (net position). Of this amount, $ 27.6 representsunrestricted net position, which may be used to meet the government’s ongoingobligations to citizens and creditors.

The City’s total net position increased by $ 22.0 during the current fiscal year. Netposition of our governmental and business type activities increased by $ 21.5 and$ 0.5, respectively.

As of the close of the current fiscal year, the City of Sunny Isles Beach governmentalfunds reported combined ending fund balances of $ 53.1, a decrease of $ 1.2 incomparison with the prior year. Approximately 22.7% of this balance or, $ 12.1 isavailable for spending at the government’s discretion (unassigned fund balance).

At the end of the current fiscal year, fund balance for the General Fund was $ 22.1or 71.1% of the total General Fund expenditures and other financing uses. Of thisbalance, $ 10.0 has been committed to the Hurricane/Emergency and DisasterRecovery Operating Reserves, $ 0.04 for prepaid assets and $ 12.1 million wasunassigned and available for new spending.

Interest rates have been steadily declining during the year, but at a relatively slowerpace. The City opened a money market depository account with an interestearnings rate of 0.90% compared to 0.45% and 0.20% in the prior year. As such, theCity’s average interest earnings return has increased from 1.21% in 2014 to 1.48% in2015. In addition, the unrealized loss on investments due to market fluctuations hasdecreased from $ 0.8 in 2014 to $ 0.06 in 2015. These investments will be held untilmaturity and are expected to regain their market value by this time.

Overview of the Financial Statements

The discussion and analysis is intended to serve as an introduction to the City’s basic financialstatements. The City’s financial statements comprise three components: 1) government widefinancial statements; 2) fund financial statements; and 3) notes to the financial statements. Thisreport also contains other supplementary information in addition to the basic financial statements.

Government wide Financial Statements: The government wide financial statements are designedto provide readers with a broad overview of the City’s finances, in a manner similar to a privatesector business. The City’s government wide financial statements include the statement of netposition and statement of activities.

The Statement of Net Position presents information on the assets held, liabilities owed by the Cityand any deferred inflows and outflows of resources. Assets are reported when the City acquiresownership over the assets and liabilities are reported when they are incurred, regardless of thetiming of the related cash flows. For example, the City reports buildings and infrastructure asassets, even though they are not available to pay the obligations incurred by the City. On the otherhand, the City reports liabilities even though these liabilities might not be paid until several yearsinto the future.

5


The difference between the City’s total assets, total liabilities and deferred inflows and outflows ofresources is net position. Over time, increases or decreases in net position may serve as a usefulindicator of whether the financial position of the City is improving or deteriorating. In general, asthis amount increases it indicates that the financial position of the City is improving over time.

The Statement of Activities presents revenues and expenses of the City. The items presented onthe statement of activities are measured in a manner similar to the approach used in the privatesector in that revenues are recognized when earned and expenses are reported when incurred.Accordingly, revenues are reported even when they may not be collected for several months afterthe end of the accounting period and expenses are recorded even though they may not have usedcash during the current period.

Both of the government wide financial statements distinguish functions of the City of Sunny IslesBeach that are principally supported by taxes and intergovernmental revenues (governmentalactivities) from other functions that are intended to recover all or a significant portion of their coststhrough user fees and charges (business type activities). The governmental activities of the City ofSunny Isles Beach include general government, public safety, physical environment, transportation,and culture and recreation. The business type activities of the City of Sunny Isles Beach are theStormwater operations.

The government wide financial statements can be found on pages 15 and 16 of this report.

Fund Financial Statements: Unlike government wide financial statements, the focus of fundfinancial statements is directed to specific activities of the City rather than the City as a whole.Except the General Fund, separate funds are established to maintain control over resources thathave been segregated for specific activities or objectives. The City of Sunny Isles Beach, like otherstate and local governments, uses fund accounting to ensure and demonstrate compliance withfinance related legal requirements. All of the funds of the City of Sunny Isles Beach can be dividedinto two categories: governmental funds and proprietary funds.

Governmental Funds: Governmental fund financial statements consist of a balance sheet andstatement of revenues, expenditures, and changes in fund balances. These statements areprepared on an accounting basis that is significantly different from that used to prepare thegovernment wide financial statements.

In general, these financial statements have a short term emphasis and, for the most part, measureand account for cash and other assets that can easily be converted to cash. For example, amountsreported on the balance sheet include items such as cash and receivables collectible within a shortperiod of time, but do not include capital assets such as land and buildings. Fund liabilities includeamounts that are to be paid within a short period of time after the end of the fiscal year. Thedifference between a fund’s total assets and total liabilities is labeled as the fund balance, andgenerally indicates the amount that can be used to finance the next fiscal year’s activities. Theoperating statement for governmental funds reports only those revenues and expenditures thatwere collected or paid during the current period or very shortly after the end of the year.

For the most part, the balances and activities accounted for in governmental funds are alsoreported in the governmental activities columns of the government wide financial statements.However, because a different accounting basis is used to prepare the fund financial statements andthe government wide financial statements, there are often significant differences between thetotals presented. For this reason, there is an analysis after the balance sheet that reconciles thetotal fund balances to the amount of the net position presented in the governmental activitiescolumn on the statement of net position. Also, there is an analysis after the statement ofrevenues, expenditures, and changes in fund balances that reconciles the total change in fundbalances for all governmental funds to the change in net position as reported in the governmentalactivities column in the statement of activities.

6


The City of Sunny Isles Beach maintains six individual governmental funds. Information ispresented separately in the governmental fund balance sheet and in the governmental fundstatement of revenues, expenditures, and changes in fund balances for the General Fund, theGeneral Capital Projects Fund, and the Law Enforcement Trust Fund which are considered to bemajor funds. The City presents data from all other non major funds in a single column (non majorfunds). Individual fund data for each of these non major governmental funds is provided in theform of combining statements elsewhere in this report.

The City of Sunny Isles Beach adopts an annual appropriated budget for its General Fund. Abudgetary comparison statement has been provided for the General Fund to demonstratecompliance with this budget.

The basic governmental fund financial statements can be found on pages 17 through 21 of thisreport.

Proprietary Funds: Proprietary fund financial statements consist of a statement of net position, astatement of revenues, expenses, and changes in net position and a statement of cash flows.These statements are prepared on an accounting basis that is similar to the basis used to preparethe government wide financial statements. The City maintains one type of proprietary fund knownas an enterprise fund.

The City uses enterprise funds to account for business type activities that charge fees to customersfor the use of specific goods or services. These funds are used to report the same functionspresented as business type activities in the government wide financial statement. The City ofSunny Isles Beach uses an enterprise fund to account for its stormwater operations.

Proprietary funds provide the same type of information as the government wide financialstatements only in more detail. The basic proprietary fund financial statements can be found onpages 22 through 24 of this report.

Notes to the Basic Financial Statements: The notes provide additional information that is essentialto 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 25 through 51 of this report.

Other information: In addition to the basic financial statements and accompanying notes, thisreport also presents certain required supplementary information concerning the City of Sunny IslesBeach’s General Fund budgetary comparison schedule to demonstrate compliance with the budget.Required supplementary information can be found on pages 52 through 61 of this report.

Government wide Financial Analysis

Summary of net position: As noted earlier, net position may serve over time as a useful indicatorof a government’s financial position. There are six basic transactions that will affect thecomparability of the Statement of Net Position summary presentation as reflected below:

1) Net results of activities will impact (increase/decrease) current assets andunrestricted net position.

2) Borrowing for capital will increase current assets and long term debt.

7


3) Spending borrowed proceeds on new capital will reduce current assets andincrease capital assets. There is a second impact: an increase in invested incapital assets and an increase in related debt will not change the net investmentin capital assets.

4) Spending of non borrowed current assets on new capital will reduce currentassets, increase capital assets, reduce unrestricted net position, and increase netinvestment in capital assets.

5) Principal payment on debt will reduce current assets, reduce long term debt,reduce unrestricted net position, and increase net investment in capital assets.

Reduction of capital assets through depreciation will reduce capital assets and net investment incapital assets.

The following schedule is a summary of the fiscal year 2015 statement of net position found onpage 15 with comparative information for fiscal year 2014.

2015 2014 2015 2014 2015 2014

Current and $ 58,234 $ 60,128 $ 1,433 $ 1,217 $ 59,667 $ 61,345other assetsCapital assets 188,789 168,450 16,243 16,305 205,032 184,755

Total assets 247,023 228,578 17,676 17,522 264,699 246,100

Total deferred outflowsof resources 2,557 1,186 26 12 2,583 1,198

Long term liabilitiesoutstanding 54,384 52,879 3,102 3,487 57,486 56,366Other liabilities 9,174 8,634 503 460 9,677 9,094

Total liabilities 63,558 61,513 3,605 3,947 67,163 65,460

Total deferred inflowsof resources 2,713 6,408 23 59 2,736 6,467

Net position:Net investmentin capital assets 145,182 122,083 12,845 12,536 158,027 134,619Restricted 11,709 11,126 11,709 11,126Unrestricted 26,418 28,634 1,229 992 27,647 29,626

Total net position $ 183,309 $ 161,843 $ 14,074 $ 13,528 $ 197,383 $ 175,371

Governmental Activities Business Type Activities Total

City of Sunny Isles BeachNet Position

September 30, 2015 and 2014(In Thousands)

The overall position of the City improved in both the 2015 and 2014 fiscal years. Changes in netposition over time can be one of the best and most useful indicators of the financial position. Thetotal net position of the City increased by $ 22.0 or approximately 12.5% from $ 175.4 in 2014 to$ 197.4 in 2015. The increase in net position was primarily a result of operations in thegovernmental activities.

At the end of the fiscal year, the City reported positive balances in all categories of net position forboth governmental and business type activities.

8


By far, the largest portion of the City’s net position (80%) reflects in its investment in capital assets(such as land, building, machinery and equipment) less any related outstanding debt used toacquire those assets. The City uses these capital assets to provide services to citizens;consequently, these assets are not available for future spending. Although the City’s capital assetsare reported net of related debt, it should be noted that the resources needed to repay this debtmust be provided from other sources, since the capital assets themselves cannot be used toliquidate these liabilities.

An additional portion of the City’s net assets (6%) represents resources that are subject to externalrestrictions on how they may be used. The balance in restricted net position reflects a net increaseof $ 0.6 from $ 11.1 in 2014 to $ 11.7 in 2015.

The fiscal year 2015 balance in unrestricted net position of $ 27.6 decreased by $ 2.0 or 6.8% fromthe prior year. This decrease is primarily due to an increase of capital outlay and other expenses.The balance in unrestricted net position represents resources that may be used to meet the City’songoing obligations to its citizens and creditors.

Summary of changes in net position: The following information is presented to assist the reader inunderstanding the different types of normal impacts that can affect revenues:

1) Economic Condition can reflect a declining, stable or growing environment and hasan impact on property taxes, non ad valorem assessments and sales, gas, or othertax revenues as well as consumer spending habits as it relates to building permits,user fees, and other consumption revenues.

2) The City Commission has authority to set increases or decreases in City rates(Stormwater, permitting, impact fees, user fees, etc.).

3) Changing patterns in intergovernmental and grant revenues (both recurring andnon recurring) can change and impact the annual comparisons.

4) Market impacts on investment income may cause investment revenues recorded tofluctuate from the prior year.

Basic impacts on expenses are outlined below:

1) Introduction of new programs can have an impact on property taxes, non advalorem assessments and sales, gas or other tax revenues as well as consumerspending habits as it relates to building permits, user fees, and other consumptionrevenues.

2) Changes in service demand levels can cause the City to increase or decrease authorizedstaffing.

3) Salary increases such as cost of living, performance increases and pensioncontributions can impact personal service costs.

4) While inflation appears to be reasonably modest, the City is a major consumer ofcertain commodities such as chemicals, supplies, fuels, and parts. Some functionalexpenses may experience unusual commodity specific increases, such as gasoline.

9


The following schedule is a summary of the fiscal year 2015 statement of activities found on page16 with comparative information for fiscal year 2014.

2015 2014 2015 2014 2015 2014Revenues:Program revenues:Charges for services $ 9,930 $ 8,647 $ 997 $ 976 $ 10,927 $ 9,623Operating grantsand contributions 1,075 1,096 86 84 1,161 1,180Capital grantsand contributions 397 90 321 718 90

General revenues:Property taxes 19,186 17,906 19,186 17,906Utility taxes 4,376 4,381 4,376 4,381Franchise taxes 1,340 1,285 1,340 1,285Impact fees 12,826 2,623 12,826 2,623Intergovernmental 2,162 2,031 2,162 2,031Investment income 1,564 1,559 26 25 1,590 1,584Miscellaneous 606 404 606 404Gain on sale of capital assets 4 66 4 66

Total revenues 53,466 40,088 1,430 1,085 54,896 41,173

City of Sunny Isles BeachStatement of Activities

Years Ended September 30, 2015 and 2014(in Thousands)


Expenses:General government 8,304 7,845 8,304 7,845Public safety 11,412 11,023 11,412 11,023Physical environment 4,550 3,671 4,550 3,671Culture and humanservices 4,776 4,135 4,776 4,135Transportation 1,512 1,551 1,512 1,551Interest on long termdebt 1,446 1,549 1,446 1,549Stormwater 884 729 884 729

Total expenses 32,000 29,774 884 729 32,884 30,503

Increase in net position 21,466 10,314 546 356 22,012 10,670

Net position beginning 161,843 162,860 13,528 13,286 175,371 176,146

Restatement (Note 15) (11,331) (114) (11,445)

Net position ending $ 183,309 $ 161,843 $ 14,074 $ 13,528 $ 197,383 $ 175,371

Governmental activities: Governmental activities increased the City of Sunny Isles Beach’s netposition by $ 21.5, thereby accounting for 97.5% of the total growth in the net position of the Cityof Sunny Isles Beach. Total governmental revenues increased by 33.4% from the prior year whencompared to the increase in total expenses of 7.5% from the prior year. Key elements of thisincrease are as follows:

Charges for services increased by $ 1.3 due to higher than expected permit fees.

Impact fee revenues increased by $ 10.2 due to the timing of payment of new condominiumdevelopments starting in the City. Those revenues expected last year were received this year.

10


Governmental revenues increased from $ 40.1 to $ 53.5. 35.9% of these revenues received comefrom property taxes, 18.6% from charges for services and 10.7% from utility and franchise taxes.Chart 1 compares program revenues to program expenses for each category of activities. The costof all governmental activities this year was $ 32.0. Some of that cost was financed by:

Those who directly benefited from the programs through charges for services ($ 9.9),and

Other governments and organizations that subsidized certain programs throughoperating and capital grants and contributions ($ 1.5)

The City financed the remaining $ 20.6 “public benefit” portion of governmental activities withtaxes (property taxes, utility taxes, and franchise fees).

-

2,000

4,000

6,000

8,000

10,000

12,000

Generalgovernment

Public safety Physicalenvironment

Culture and humanservices

Transportation Interest on long-term debt

($ in

thou

sand

s)

Chart 1Expenses and Program Revenues - Governmental Activities

Expenses

Program revenues

Business type Activities Business type activities increased the City’s net position by $ 0.5 therebyaccounting for 2.5% of the total increase in the government’s net position. Revenues of the City’sbusiness type activities had an increase of 31.8% from the previous year; $ 1.09 to $ 1.43, whileexpenses increased by 21.3%; $ 0.73 to $ 0.88. Factors contributing to these results included:

The capital grant and contribution ($ 0.32) for the 174th street drainage project.

Financial Analysis of the City’s Funds

As noted earlier, the City of Sunny Isles Beach uses fund accounting to ensure and demonstratecompliance with finance related legal requirements.

11


Governmental Funds

The fund financial statements for the governmental funds are provided on pages 17 through 21.The focus of the City’s governmental funds is to provide information regarding near term inflows,outflows and balances of spendable resources. Such information is useful in assessing the City’sfinancing requirements. In particular, unassigned fund balance may serve as a useful measure of agovernment’s net resources available for spending at the end of the fiscal year.

The General Fund is the chief operating fund of the City of Sunny Isles Beach. At the end of thecurrent fiscal year, unassigned fund balance of the General Fund was $ 12.1. As a measure of theGeneral Fund’s liquidity it may be useful to compare both unassigned fund balance and total fundbalance to total fund expenditures and other financing uses. Unassigned fund balance represents38.9% of total General Fund expenditures and other financing uses, while total fund balancerepresents 71.1% of the same amount.

The fund balance of the City’s General Fund increased by $ 2.9 during the current fiscal year. Whencomparing budget to actual, this was due to a $ 1.9 increase in total revenues and $ 1.0 netdecrease in total expenditures and other financing sources (uses). Contributing factors to theincrease in revenues include $ 0.20 for intergovernmental revenue sharing and taxes, $ 0.20 forlicenses and permits related to extended hours fees at construction sites, zoning hearings and planreviews, $ 0.60 for charges for services related to parking revenues and communityprograms/events, $ 0.30 for fines and forfeitures as a result of an increase in code enforcementcitations, $ 0.40 as a result of higher than expected interest earnings (i.e., more favorable interestrate for cash balances and regaining the value of the investment securities), and $ 0.20 formiscellaneous income related to higher than expected rental income and a prior year property taxrefund. The decrease in total expenditures is the result of $ 1.0 in unspent monies related toposition vacancies and benefits savings and capital outlay.

The General Capital Projects Fund had a decrease in the fund balance from the prior year of $ 4.6;the fund balance went from $ 23.9 in fiscal year 2014 to $ 19.3 in fiscal year 2015. Whencomparing budget to actual, this net decrease is attributed to a $ 4.0 increase in impact feerevenues for new condominium developments and $ 17.6 decrease in capital expenditures due tothe timing of project completion for Gateway Park, the Emergency/Pedestrian Bridge, Samson ParkImprovements, 174th Street Drainage and the FP&L Underground projects offset by unusedappropriations from prior year reserves of $ 22.9 and the expected sale of $ 3.3 for Bella Vista Parkthat did not happen.

The Law Enforcement Fund has a total fund balance of $ 8.4 of which most of it is held in cash andinvestments.

Proprietary Funds

The City of Sunny Isles Beach proprietary funds provide the same type of information found in thegovernment wide financial statements, but in more detail.

The unrestricted net position of the City’s proprietary fund as of the fiscal year end is $ 1.2. Thetotal increase in net position was $ 0.54. Other factors concerning the finances of this fund havealready been addressed in the discussion of the City of Sunny Isles Beach’s business type activities.

12


General Fund Budgetary Highlights

During the year, there was a $ 0.11 decrease in revenues between the original and final amendedbudget. This was due to decreasing revenue by $ 0.11 for charges for services related to thePelican Community Park gym naming rights revenue and the Building and Stormwateradministrative fees. In addition, there was a $ 1.9 increase in expenditures between the originaland final amended budget. The primary reason for the increase in expenditures is due to anincrease of $ 2.8 in transfers out to the Capital Projects Fund, an increase in capital outlay of $ 0.20and an increase in Planning and Zoning operating expenditures of $ 0.10 offset by decreases in fundbalance of $ 1.2.

Capital Asset and Debt Administration

Capital Assets: The City of Sunny Isles Beach investment in capital assets for its governmental andbusiness type activities as of September 30, 2015 amounts to $ 205.0 (net of accumulateddepreciation). This investment in capital assets includes land, buildings, machinery and equipment,park facilities, and streets. The total increase in the City of Sunny Isles Beach investment in capitalassets for the current fiscal year was $ 20.3 (a 12.1% increase in governmental activities and a .4%decrease in business type activities).

2015 2014 2015 2014 2015 2014

Land $ 91,682 $ 84,649 $ $ $ 91,682 $ 84,649Easements 488 488 488 488Buildings 16,254 16,648 16,254 16,648Improvements 3,305 3,437 3,305 3,437Equipment 3,288 2,931 3,288 2,931Infrastructure 47,380 46,014 15,605 15,961 62,985 61,975Construction in progress 26,392 14,283 638 344 27,030 14,627

Total $ 188,789 $ 168,450 $ 16,243 $ 16,305 $ 205,032 $ 184,755

City of Sunny Isles Beach

September 30, 2015 and 2014


(in thousands)Capital Assets, Net of Depreciation

For governmental activities, this year’s major capital asset additions before depreciation totaled$ 23.3 and include the following:

$ 7.0 in land purchased for a Government Center expansion at 18080 Collins Avenue.

$ 14.9 in new construction in progress, which relates to projects started in the City,but not yet completed, such as the Government Center improvements, design andconstruction of a pedestrian and emergency vehicular bridge, the development ofGateway Park, the completion of the city wide FPL undergrounding and theemergency repair of the Intracoastal Park seawall.

$ 1.4 in new equipment, $ 0.70 of which are vehicle purchases for public safety andphysical environment departments. The remaining purchases relate to technologyequipment purchased as replacement, culture & human services equipment andpublic safety equipment.

13


For governmental activities, this year’s major capital asset disposals consisted of vehicles that wereremoved or replaced that have a minimal carrying value.

Capital additions for business type activities before depreciation totaled $ 0.3 which consists ofnew construction in progress (infrastructure) related to 174th Street Drainage system.

Additional information on the City of Sunny Isles Beach capital assets can be found in Note 6 onpages 35 and 36 of this report.

Long Term Debt: At the end of the current fiscal year, the City of Sunny Isles Beach had bondeddebt outstanding of $ 30.9 plus notes payable in the amount of $ 15.6 for total long term debt of$ 46.5.

2015 2014 2015 2014 2015 2014Revenue notes(backed by specifictax and fee revenues) $ 27,507 $ 29,917 $ 3,398 $ 3,817 $ 30,905 $ 33,734Notes Payable 15,637 16,450 15,637 16,450

Total $ 43,144 $ 46,367 $ 3,398 $ 3,817 $ 46,542 $ 50,184

City of Sunny Isles Beach


(in thousands)September 30, 2015 and 2014

Revenue Notes and Other Debt

The City of Sunny Isles Beach’s total debt decreased by $ 3.6 (7.3%) during the current fiscal year.The reason for the decrease was a result of debt service requirements reducing the liability.

Additional information on the City of Sunny Isles Beach long term debt can be found in Note 8 onpages 36 through 39 of this report.

Economic Factors and Next Year’s Budgets and Rates

The State of Florida, by constitution, does not have a state personal income tax and therefore theState 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 permittedother taxes (sales, communication, gasoline, utilities services, etc.) and fees (franchise, buildingpermits, recreation, etc.) for their governmental activities. There are a limited number of stateshared revenues and recurring and non recurring (one time) grants from both the state and federalgovernments. For the business type and certain governmental activities (building inspections,recreation programs, etc.) the user pays a related fee or charge associated with the service.

Unassigned fund balance in the General Fund totals $ 12.1. Of this amount, $ 4.0 has been setaside for a Contingency/Fiscal stability reserve which reflects the City’s planned progress toward animplementation goal of 25% of General Fund operating expenditures by September 30, 2017.Reappropriations will occur for those purchase orders issued in fiscal year 2015 for which nodelivery or payment occurred by September 30, 2015.

In fiscal year 2016, the City lowered its property tax millage rate to 2.500. This property tax millagerate is calculated 5.55% above the 2015 rollback millage rate of 2.3686 and, therefore, is expectedto generate more property tax revenue compared to the prior year due to increased propertyvalues.

14


The City continuously evaluates current and potential legislative issues to reduce fiscal impact onthe City. Over the past couple of years, the Legislature has sought to reduce the revenues of thelocal governments while passing laws that are generally unfunded mandates.

All of these factors were considered in preparing the City of Sunny Isles Beach’s budget for the2016 fiscal year.

Request for Information

This financial report is designed to provide a general overview of the City of Sunny Isles Beachfinances for all those with an interest in the City’s finances. Questions concerning any of theinformation provided in this report or requests for additional financial information should beaddressed to the Office of the Finance Director, City of Sunny Isles Beach, 18070 Collins Avenue,Sunny Isles Beach, Florida 33160. Information is also available on the City’s website atwww.sibfl.net.

BASIC FINANCIAL STATEMENTS

The accompanying notes to basic financial statements are an integral part of these statements.

15

BusinessGovernmental Type

Activities Activities TotalAssets:Cash and cash equivalents $ 24,302,608 $ 463,837 $ 24,766,445Investments 28,962,944 552,957 29,515,901Receivables, net 1,513,980 413,899 1,927,879Note receivable 859,248 859,248Loan receivable 2,000,000 2,000,000Interest receivable 553,998 2,362 556,360Inventory 3,720 3,720Prepaids 37,162 37,162Capital assets not being depreciated 118,562,280 637,674 119,199,954Capital assets being depreciated, net 70,226,898 15,605,518 85,832,416

Total assets 247,022,838 17,676,247 264,699,085

Deferred Outflows of Resources:Deferred outflows related to pensions 2,557,367 25,832 2,583,199

Total deferred outflows of resources 2,557,367 25,832 2,583,199

Liabilities:Accounts payable 1,237,633 57,132 1,294,765Accrued liabilities 2,279,720 7,727 2,287,447Accrued interest payable 431,788 10,376 442,164Unearned revenue 529,512 529,512Noncurrent liabilities:Due within one year:Claims and judgments 1,077,500 1,077,500Compensated absences 293,797 1,612 295,409Bonds and notes 3,324,282 426,799 3,751,081Due in more than one year:Compensated absences 2,644,173 14,509 2,658,682Bonds and notes 39,820,471 2,971,364 42,791,835Net pension liability 10,968,070 110,788 11,078,858Net OPEB obligation 951,000 5,000 956,000

Total liabilities 63,557,946 3,605,307 67,163,253

Deferred Inflows of Resources:Deferred inflows related to pensions 2,251,326 22,741 2,274,067Deferred charge on refunding 461,774 461,774

Total deferred inflows of resources 2,713,100 22,741 2,735,841

Net Position:Net investment in capital assets 145,182,117 12,845,029 158,027,146Restricted for:Law enforcement 8,434,808 8,434,808Building 2,311,303 2,311,303Public art 33,933 33,933Transportation 929,029 929,029Unrestricted 26,417,969 1,229,002 27,646,971

Total net position $ 183,309,159 $ 14,074,031 $ 197,383,190


September 30, 2015Statement of Net Position

Theaccompanyingno

testobasic

financialstatem

entsarean

integralpartof

thesestatem

ents.

16

Charges

Ope

ratin

gCapital

Busin

ess

for

Gran

tsan

dGran

tsan

dGo

vernmen

tal

Type

Expe

nses

Services

Contrib

utions

Contrib

utions

Activ

ities

Activ

ities

Total

Functio

ns/Program

s:Go

vernmentalactivities:

Gene

ralgovernm

ent

$8,304,502

$7,490,04

2$

$$

(814

,460

)$

$(814

,460

)Pu

blicsafety

11,412

,362

1,137,19

210

,133

(10,265,03

7)(10,26

5,037)

Physicalenvironm

ent

4,549,578

(4,549

,578

)(4,549

,578

)Cu

lture

andhu

man

service

s4,775,661

1,302,90

139

6,962

(3,075

,798

)(3,075

,798

)Transportatio

n1,511,671

1,06

4,690

(446

,981

)(446

,981

)Intereston

long

term

debt

1,446,349

(1,446

,349

)(1,446

,349

)

Totalgovernm

entalactivities

32,000

,123

9,930,13

51,07

4,823

396,962

(20,598,20

3)(20,59

8,203)

Busin

esstype

activities:

Stormwater

883,511

996,79

985

,550

321,316

520,15

452

0,154

Totalbusinesstype

activities

883,511

996,79

985

,550

321,316

520,15

452

0,154

Totalprim

arygovernmen

t$

32,883,634

$10

,926,934

$1,16

0,373

$71

8,278

(20,598,20

3)52

0,15

4(20,07

8,049)

Gene

ralreven

ues:

Prop

ertytaxes

19,186

,170

19,186

,170

Utilitytaxes

4,375,81

84,37

5,818

Impactfees

12,826

,104

12,826

,104

Franchise

taxeso

ngrossreceipts

1,340,33

81,34

0,338

Intergovernm

ental,un

restricted

2,161,79

32,16

1,793

Unrestrictedinvestmen

tearnings

1,564,12

426,333

1,59

0,457

Gainon

saleof

capitalassets

3,876

3,876

Misc

ellaneou

s605,84

860

5,848

Totalgeneralrevenu

es42

,064

,071

26,333

42,090

,404

Change

innetp

osition

21,465

,868

546,48

722

,012

,355

Netp

osition

,beginning,asrestated(Note15

)16

1,843,29

113

,527,544

175,37

0,835

Netp

osition

,end

ing

$18

3,309,15

9$

14,074,031

$197,38

3,190

Program

Revenu

esCh

angesinNet

Position

Net

(Expen

se)R

even

uean

d

City

ofSunn

yIslesB

each,Florid

aStatem

ento

fActivities

Forthe

Year

Ende

dSeptem

ber3

0,20

15


17

General LawCapital Enforcement

General Projects TrustFund Fund Fund

Assets:Cash and cash equivalents $ 10,394,508 $ 8,506,031 $ 3,886,782Investments 12,382,786 10,140,153 4,633,575Receivables, net 822,736 472,375 2,700Note receivable 859,248Loan receivable 2,000,000Interest receivable 52,888 473,603 19,791InventoryPrepaids 36,802

Total assets $ 23,689,720 $ 22,451,410 $ 8,542,848

Liabilities:Accounts payable $ 401,281 $ 797,071 $Accrued liabilities 1,055,581 952,425 108,040Unearned revenue 57,136 472,376

Total liabilities 1,513,998 2,221,872 108,040

Deferred Inflows of Resources:Unavailable revenue transferred development rights 859,248Unavailable revenue interest 120,018Unavailable revenue taxes 73,201

Total deferred inflows of resources 73,201 979,266

Fund Balances:Nonspendable:InventoryPrepaids 36,802Long term receivables 859,248Restricted for:Law enforcement 8,434,808BuildingPublic artTransportationCommitted to:Hurricane/Emergency and Disaster RecoveryOperating Reserves 10,000,000

Assigned to:Capital projects 18,391,024Unassigned:General Fund 12,065,719

Total fund balances 22,102,521 19,250,272 8,434,808

Total liabilities, deferred inflows ofresources, and fund balances $ 23,689,720 $ 22,451,410 $ 8,542,848

City of Sunny Isles Beach, FloridaBalance Sheet Governmental FundsSeptember 30, 2015

18

Nonmajor TotalGovernmental Governmental

Funds Funds

$ 1,515,287 $ 24,302,6081,806,430 28,962,944216,169 1,513,980

859,2482,000,000

7,716 553,9983,720 3,720360 37,162

$ 3,549,682 $ 58,233,660

$ 39,281 $ 1,237,633163,674 2,279,720

529,512

202,955 4,046,865

859,248120,018

68,742 141,943

68,742 1,121,209

3,720 3,720360 37,162

859,248

8,434,8082,310,943 2,310,943

33,933 33,933929,029 929,029

10,000,000

18,391,024

12,065,719

3,277,985 53,065,586

$ 3,549,682 $ 58,233,660


19

Fund Balances Total Governmental Funds, Page 18 $ 53,065,586

Amounts reported for governmental activities in the statementof net position are different because:

Capital assets used in governmental activities are notfinancial resources and therefore are not reported inthe governmental funds:

Governmental capital assets $ 209,680,341Less accumulated depreciation (20,891,163)

Net capital assets 188,789,178

The net pension liability and related deferred inflowsand outflows are not an available resource and,therefore, are not reported in the funds.

Net pension liability (10,968,070)Deferred outflows related to pension 2,557,367Deferred inflows related to pension (2,251,326)

Long term liabilities, including bonds and notes payable,are not due and payable in the current period and,therefore are not reported in the governmental funds:

Bonds and notes payable (43,144,753)Deferred charge on refunding (461,774)Accrued interest payable on long term debt (431,788)Claims and judgments (1,077,500)OPEB obligation (951,000)Compensated absences (2,937,970)

Total long term liabilities (49,004,785)

Certain revenues are considered deferred revenues in thegovernmental funds due to the availability of the funds;under full accrual accounting they are considered revenues. 1,121,209

Net Position of Governmental Activities, Page 15 $ 183,309,159

City of Sunny Isles Beach, FloridaReconciliation of the Balance Sheet of Governmental Fundsto the Statement of Net PositionSeptember 30, 2015

Theaccompanyingno

testobasic

financialstatem

entsarean

integralpartof

thesestatem

ents.

20

Gene

ral

Law

Capital

Enforcem

ent

Non

major

Total

Gene

ral

Projects

Trust

Governmen

tal

Governmen

tal

Fund

Fund

Fund

Fund

sFund

sRe

venu

es:

Realandpe

rson

alprop

ertytaxes

$19,186,170

$$

$$

19,186,170

Utility

taxes

4,302,617

4,302,617

Franchise

fees

1,340,338

1,340,338

Impactfees

12,792,104

34,000

12,826,104

Intergovernm

ental

2,030,101

396,962

1,185,034

3,612,097

Licen

sesa

ndpe

rmits

859,375

3,740,611

4,599,986

Chargesfor

services

3,986,239

29,755

18,150

4,034,144

Fine

sand

forfeitures

565,045

10,133

575,178

Investmen

tincom

e579,191

867,709

218,359

59,614

1,724,873

Misc

ellane

ous

1,036,404

300,000

1,336,404

Totalreven

ues

33,885,480

14,386,530

228,492

5,037,409

53,537,911

Expe

nditu

res:

Curren

t:Ge

neralgovernm

ent

5,066,660

2,901,374

7,968,034

Publicsafety

10,563,274

345,015

10,908,289

Physicalen

vironm

ent

1,717,270

1,717,270

Cultu

reandhu

man

services

4,528,367

475

4,528,842

Transportatio

n1,521,925

1,521,925

Capitaloutlay

759,498

21,868,227

690,845

103,538

23,422,108

Debt

service:

Principal

3,222,599

3,222,599

Interest

1,534,757

1,534,757

Total expen

ditures

27,392,425

21,868,227

1,035,860

4,527,312

54,823,824

Excess

(deficiency)of

revenu

esover

expe

nditu

res

6,493,055

(7,481,697)

(807,368)

510,097

(1,285,913)

Other

Fina

ncingSources(Uses):

Saleof

prop

ertyandequipm

ent

3,876

3,876

Insurancerecoverie

s81,116

81,116

Transfersin

2,800,000

881,104

3,681,104

Transferso

ut(3,681,104)

(3,681,104)

Totalother

financing

sources(uses)

(3,596,112)

2,800,000

881,104

84,992

Net

change

infund

balances

2,896,943

(4,681,697)

(807,368)

1,391,201

(1,200,921)

Fund

Balances,B

eginning

ofYe

ar19,205,578

23,931,969

9,242,176

1,886,784

54,266,507

Fund

Balances,End

ofYear

$22,102,521

$19,250,272

$8,434,808

$3,277,985

$53,065,586

City

ofSunn

yIslesB

each,Florid

aStatem

ento

fReven

ues,Expe

nditu

resa

ndCh

angesinFund

Balances

Governm

entalFun

dsForthe

Year

Ende

dSeptem

ber3

0,20

15


21

Net Change in Governmental Funds, Page 20 $ (1,200,921)

Amounts reported for governmental activities in the statementof activities are different because:

Governmental funds report capital outlays as expenditures. However, inthe statement of activities, the cost of those assets are allocated over theirestimated useful lives and reported as depreciation expense. This is theamount by which capital outlays exceeded depreciation in the currentperiod.

Capital outlays $ 23,300,307Less depreciation expense (2,954,172) 20,346,135

The issuance of long term debt (e.g. bonds and notes payable) providecurrent financial resources to governmental funds, while repayment ofthe principal of long term debt consumes the current financial resourcesof governmental funds. Neither transaction has any effect on net assets.Also, governmental funds report the effect of premiums, discountsand similar items when debt is first issued, whereas those amounts aredeferred and amortized in the statement of activities.

Principal payments 3,222,599Amortization of deferred gain on refunding 56,758 3,279,357

Some expenses reported in the statement of activities are not reported inthe governmental funds because they have no effect on currentfinancial resources.

Contingency (977,500)Accrued interest payable 31,650Change in net pension liability (4,340,279)Change in deferred outflows related to pension 1,371,558Change in deferred inflows related to pension 3,637,481OPEB obligation (166,000)Compensated absences (358,701) (801,791)

Revenues in the statement of activities that do not provide current financialresources are not reported as revenues in the governmental funds. (150,061)

In the statement of activities, only the gains/(losses) on disposals ofcapital assets are reported, whereas in the governmental funds, theentire proceeds from the disposal increase financial resources. Thusthe change in net assets differs from the change in fund balances by thecost of the capital assets, net. (6,851)

Change in Net Position of Governmental Activities, Page 16 $ 21,465,868

For the Year Ended September 30, 2015

City of Sunny Isles Beach, FloridaReconciliation of the Statement of Revenues, Expenditures and Changes inFund Balances of Governmental Funds to the Statement of Activities


22

StormwaterFund

Assets:Current assets:Cash and cash equivalents $ 463,837Investments 552,957Accounts receivable, net 413,899Interest receivable 2,362

Total current assets 1,433,055Noncurrent assets:Capital assets not being depreciated 637,674Capital assets, net of accumulated depreciation 15,605,518

Total noncurrent assets 16,243,192Total assets 17,676,247

Deferred Outflows of Resources:Deferred outflows related to pensions 25,832

Total deferred outflows of resources 25,832Liabilities:Current liabilities:Accounts payable 57,132Accrued liabilities 7,727Accrued interest payable 10,376Compensated absences, current portion 1,612Revenue bonds payable, current portion 426,799

Total current liabilities 503,646Noncurrent liabilities:Revenue bonds payable 2,971,364Compensated absences 14,509Net pension liability 110,788OPEB obligation 5,000

Total noncurrent liabilities 3,101,661Total liabilities 3,605,307

Deferred Inflows of Resources:Deferred inflows related to pensions 22,741

Total deferred inflows of resources 22,741Net Position:Net investment in capital assets 12,845,029Unrestricted 1,229,002

Total net position $ 14,074,031

City of Sunny Isles Beach, FloridaStatement of Net PositionProprietary FundSeptember 30, 2015


23

StormwaterFund

Operating revenues:Charges for services $ 996,799

Total operating revenues 996,799

Operating expenses:Personnel services 137,644Operating expenses 325,055Depreciation 355,430

Total operating expenses 818,129

Operating income 178,670

Nonoperating revenues (expenses):Intergovernmental 406,866Investment income 26,333Interest expense (65,382)

Total nonoperating revenues (expenses) 367,817

Change in net assets 546,487

Net position, beginning, as restated (Note 15) 13,527,544

Net position, ending $ 14,074,031

City of Sunny Isles Beach, FloridaStatement of Revenues, Expenses and Changes in Net Position Proprietary FundFor the Year Ended September 30, 2015


24

StormwaterFund

Cash flows from operating activities:Cash received from customers and users $ 1,070,809Cash paid to suppliers (288,254)Cash paid to employees (146,240)

Net cash provided by (used in) operating activities 636,315

Cash flows from noncapital financing activities:Intergovernmental 85,550

Net cash provided by (used in) noncapital financing activities 85,550

Cash flows from capital and related financing activities:Interest paid on capital debt (66,585)Principal paid on capital debt (419,118)Acquisition of capital assets (293,880)

Net cash provided by (used in) capital and related financing activities (779,583)

Cash flows from investing activities:Proceeds from sales and maturities of investments 102,270Interest received 12,435Purchase of investments (121,585)

Net cash provided by (used in) investing activities (6,880)

Net increase (decrease) in cash and cash equivalents (64,598)

Cash and cash equivalents, beginning 528,435

Cash and cash equivalents, ending $ 463,837

Reconciliation of operating income to net cash provided by (used in) operating activities:Operating income $ 178,670

Adjustments to reconcile operating income to net cash provided by(used in) operating activities:Depreciation 355,430Changes in operating assets and liabilities:(Increase) decrease in accounts receivable 74,010(Increase) decrease in deferred outflows related to pension (13,854)Increase (decrease) in accounts payable 34,971Increase (decrease) in accrued liabilities 1,830Increase (decrease) in compensated absences 3,159Increase (decrease) in net pension liability 43,840Increase (decrease) in deferred inflows related to pension (36,741)Increase (decrease) in OPEB liability (5,000)

Net cash provided by (used in) operating activities $ 636,315

Noncash investing activities:Change in fair value of investments that are not cash equivalents:Unrealized (gain) loss on investments $ (14,240)

City of Sunny Isles Beach, FloridaStatement of Cash FlowsProprietary FundFor the Year Ended September 30, 2015

NOTES TO BASIC FINANCIAL STATEMENTS

25

City of Sunny Isles Beach, FloridaNotes to the Financial StatementsSeptember 30, 2015

Note 1 Summary of Significant Accounting Policies

The City of Sunny Isles Beach, Florida (the “City”) was incorporated on June 16, 1997. TheCity operates under a Commission Manager form of government and provides the followingservices as authorized by its charter: public safety, highways and streets, culture andrecreation, public works and stormwater management. The basic financial statements ofthe City have been prepared in accordance with accounting principles generally accepted inthe United States of America (GAAP) as applied to governmental units. The GovernmentalAccounting Standards Board (GASB) is the accepted standard setting body for governmentalaccounting and financial reporting. The following is a summary of the City’s moresignificant policies.

a. Financial Reporting Entity

The financial statements were prepared in accordance with Government AccountingStandards, which establishes standards for defining and reporting on the financial reportingentity. The definition of the financial reporting entity is based upon the concept thatelected officials are accountable to their constituents for their actions. One of theobjectives of financial reporting is to provide users of financial statements with a basis forassessing the accountability of the elected officials. The financial reporting entity consistsof the City, organizations for which the City is financially accountable and otherorganizations for which the nature and significance of their relationship with the City aresuch that exclusion would cause the reporting entity’s financials statements to bemisleading or incomplete. The City is financially accountable for a component unit if itappoints a voting majority of the organization’s governing board and it is able to impose itswill on that organization or there is a potential for the organization to provide specificfinancial benefits to, or impose specific financial burdens on the City of Sunny Isles Beach.Based upon the application of these criteria, there were no organizations that met thecriteria described above.

b. Government Wide and Fund Financial Statements

The government wide financial statements (i.e., the statement of net position and thestatement of activities) report information on all of the activities of the City. The effect ofinterfund activity has been removed from these statements. Governmental activities,which normally are supported by taxes and intergovernmental revenues, are reportedseparately from business type activities which rely to a significant extent on fees andcharges for support.

The statement of activities demonstrates the degree to which the direct expenses of a givenfunction or segment are offset by program revenues. Direct expenses are those that areclearly 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 andcontributions that are restricted to meeting the operational or capital requirements of aparticular function or segment. Taxes and other items not properly included amongprogram revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds and the proprietaryfund. Major individual governmental funds and major individual enterprise funds arereported as separate columns in the fund financial statements.

26


Note 1 Summary of Significant Accounting Policies (continued)

c. Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The government wide financial statements are reported using the economic resourcesmeasurement focus and the accrual basis of accounting as is used for the proprietary fundfinancial statements. Revenues are recorded when earned and expenses are recordedwhen a liability is incurred, regardless of the timing of related cash flows. Property taxesare recognized as revenues in the year for which they are levied. Grants and similar itemsare recognized as revenue as soon as all eligibility requirements imposed by the providerhave been met.

Governmental fund financial statements are reported using the current financial resourcesmeasurement focus and the modified accrual basis of accounting. Revenues are recognizedas soon as they are both measurable and available. Revenues are considered to beavailable when they are collectible within the current period or soon enough thereafter topay liabilities of the current period. For this purpose, the City considers revenues to beavailable if they are collected within 60 days of the end of the current fiscal period.Expenditures generally are recorded when a liability is incurred, as under accrualaccounting. However, debt service expenditures, as well as expenditures related tocompensated absences and claims and judgments, are recorded only when payment is due.

Property taxes, franchise taxes, licenses and interest associated with the current fiscalperiod are all considered to be susceptible to accrual and so have been recognized asrevenues of the current fiscal period. Revenues for expenditure driven grants arerecognized when the qualifying expenditures are incurred. All other revenue items areconsidered to be measurable and available only when cash is received by the City.

The City of Sunny Isles Beach reports the following major governmental funds:

The General Fund is the City’s primary operating fund. It accounts for all financialresources of the general government, except those required to be accounted for inanother fund.

The General Capital Projects Fund accounts for the acquisition of equipment andconstruction of major capital projects not being financed by proprietary funds.

The Law Enforcement Trust Fund is used to account for revenues received fromfederal, state and local law enforcement forfeitures and seizures which arerestricted for use for law enforcement purposes.

The City reports the following major proprietary fund:

The Stormwater Fund is used to account for the provision of stormwatermaintenance and capital improvements to the residents and commerce of the City.

As a general rule the effect of interfund activity has been eliminated from the governmentwide financial statements. Exceptions to this general rule are payments in lieu of taxes andother charges between the City’s utilities function and various other functions of the City.Elimination of these charges would distort the direct costs and program revenues reportedfor the various functions concerned.

27



Amounts reported as program revenues include 1) charges to customers or applicants forgoods, services, or privileges provided, 2) operating grants and contributions, and 3) capitalgrants and contributions. Internally dedicated resources are reported as general revenuesrather than as program revenues. Likewise, general revenues include all taxes, whosepurpose has not been restricted to a specific program.

Proprietary funds distinguish operating revenues and expenses from non operating items.Operating revenues and expenses generally result from providing services and producingand delivering goods in connection with a proprietary fund’s principal ongoing operations.The principal operating revenues of the Stormwater Fund are charges to business andresidential customers for stormwater system maintenance. Operating expenses report onthe costs to maintain the stormwater system, the cost of sales and services, administrativeexpenses and depreciation on capital assets. All revenues and expenses not meeting thisdefinition are reported as non operating revenues and expenses.

d. Property Taxes

Under Florida law, the assessment of all properties and the collection of all county,municipal, school board and special district property taxes are consolidated in the offices ofthe Miami Dade County Property Appraiser and Miami Dade County Tax Collector. Thelaws for the State regulating tax assessments are also designed to assure a consistentproperty valuation method statewide.

State statutes permit municipalities to levy property taxes at a rate of up to 10 mills ($ 10per $ 1,000 of assessed taxable valuation). The millage rate assessed by the City for theyear ended September 30, 2015 was 2.6000 mills.

The tax levy of the City is established by the City Commission prior to October 1 of eachyear, and the County Property Appraiser incorporates the millage into the tax levy, whichincludes Miami Dade County, Miami Dade County School Board and special taxing districts.

All property is reassessed according to its fair market value as of January 1 of each year.Each assessment roll is submitted to the Executive Director of the State Department ofRevenue for review to determine if the rolls meet all of the appropriate requirements ofstate statutes.

All real and tangible personal property taxes become payable on November 1 each year oras soon as practicable thereafter as the assessment roll is certified by the County PropertyAppraiser. Miami Dade County mails to each property owner on the assessment roll anotice of the taxes due and Miami Dade County also collects the taxes for the City. Taxesmay be paid upon receipt of such notice from Miami Dade County, with discounts at therate of four percent (4%) if paid in the month of November, three percent (3%) if paid in themonth of December, two percent (2%) if paid in the month of January and one percent (1%)if paid in the month of February. Taxes paid during the month of March are withoutdiscount, and all unpaid taxes on real and tangible personal property become delinquentand liens are placed on April 1 of the year following the year in which taxes were assessed.Procedures for the collection of delinquent taxes by Miami Dade County are provided for inthe laws of Florida. There were no material delinquent property taxes at September 30,2015.

28



e. Deposits and Investments

Cash and cash equivalents include cash on hand, demand deposits and investments inmoney market funds. Income from investments is recorded as earned.

For purposes of the statement of cash flows, the City considers all highly liquid investments(including restricted assets) with a maturity of three months or less when purchased, to becash and cash equivalents.

All investments are reported at fair value, which is based on quoted market prices.

f. Receivables

Receivables include amounts due from other governments and others for services providedby the City. Receivables are recorded and revenues are recognized as earned or as specificprogram expenditures/expenses are incurred based on the accounting basis required forthat fund. Allowances for uncollectible receivables are based upon historical trends and theperiodic aging of receivables.

g. Interfund Receivables and Payables

Activities between funds that are representative of lending/borrowing arrangementsoutstanding at the end of the fiscal year are referred to as either “due to/from other funds”(the current portion of interfund loans) or “advances to/from other funds” (the noncurrentportions of interfund loans). Any residual balances outstanding between the governmentalactivities and business activities are reported in the government wide financial statementsas “internal balances.”

h. Capital Assets

Capital assets, which include property, land, equipment, and infrastructure assets (e.g.,roads, bridges, sidewalks and similar items), are reported in the applicable governmental orbusiness type activities columns in the government wide financial statements. Capitalassets are defined by the government as assets with an initial, individual cost of more than$ 1,000 and an estimated useful life in excess of one year. Purchased or constructed assetsare recorded at historical cost or estimated historical cost if actual cost is not available.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 ormaterially extend assets lives are not capitalized. Major outlays for capital assets andimprovements are capitalized as projects are constructed.

Capital assets of the City are depreciated using the straight line method over the followingestimated useful lives:

Capital asset classes LifeBuildings 15 50 yearsImprovements 10 20 yearsMachinery and equipment 3 20 yearsInfrastructure 15 100 years

29



i. Compensated Absences

The City’s policy is to permit employees to accumulate earned but unused sick as well asvacation pay benefits, limited to certain maximums, based on length of service. For certainemployees, the City also grants compensatory time. All vacation, sick and compensatorytime is accrued when incurred in the government wide and proprietary fund financialstatements. A liability for these amounts is reported in governmental funds only if theyhave matured, for example, as a result of employee resignations and retirements.

j. Long Term Obligations

In the government wide financial statements, long term debt and other long termobligations are reported as liabilities in the applicable governmental activities or businesstype activities. Bond premiums and discounts are deferred and amortized over the life ofthe bonds using the straight line method. Discounts and premiums on bonds payable arepresented as an adjustment of the face amount of bonds payable.

In the fund financial statements, governmental fund types recognize bond premiums anddiscounts during the current period. The face amount of debt issued is reported as otherfinancing sources. Premiums received on debt issuances are reported as other financingsources while discounts on debt issuances are reported as other financing uses.

k. Deferred outflows/inflows of resources

In addition to assets, the statement of financial position will sometimes report a separatesection for deferred outflows of resources. This separate financial statement element,deferred outflows of resources, represents a consumption of net position that applies to afuture period(s) and so will not be recognized as an outflow of resources(expense/expenditure) until then. The City does not have any items that qualify forreporting of in this category.

In addition to liabilities, the statement of financial position will sometimes report a separatesection for deferred inflows of resources. This separate financial statement element,deferred inflows of resources, represents an acquisition of net position that applies to afuture period(s) and so will not be recognized as an inflow of resources (revenue) until thattime. The City has 2 types of items that qualify for reporting in this category. The first typearises only under a modified accrual basis of accounting. Accordingly, this item, unavailablerevenues, is reported only in the governmental funds balance sheet. The governmentalfunds report unavailable revenues from transferred development rights, interest and taxes.These amounts are deferred and recognized as an inflow of resources in the period that theamounts become available. The second item is a deferred charge on refunding reported inthe government wide statement of net position. A deferred charge on refunding resultsfrom the difference in the carrying value of refunded debt and its reacquisition price. Thisamount is deferred and amortized over the shorter of the life of the refunded or refundingdebt.

30



l. Net Position

Net positions in the government wide and proprietary funds are categorized as netinvestment in capital assets; restricted or unrestricted. Net investment in capital assets, isthe difference between the cost of capital assets, less accumulated depreciation reduced bythe outstanding balances of any borrowings used for the acquisition, construction orimprovement of those assets.

Restricted consists of net position with constraints placed on their use by external parties(creditors, grantors, contributors, or laws or regulations of other governments) or imposedby law through constitutional provisions or enabling legislation. Unrestricted indicates thatportion of net position that is available to fund future operations.

Sometimes the government will fund outlays for a particular purpose from both restricted(e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculatethe amounts to report as restricted net position and unrestricted net position in thegovernment wide and proprietary fund financial statements, a flow assumption must bemade about the order in which the resources are considered to be applied. It is thegovernment’s policy to consider restricted net position to have been depleted beforeunrestricted net position is applied.

m. Fund Balance

The City follows GASB Statement No. 54, Fund Balance Reporting and Governmental FundType Definitions which requires that governmental fund financial statements present fundbalances based on classifications that comprise a hierarchy that is based primarily on theextent to which the City is bound to honor constraints on the specific purposes for whichamounts in the respective governmental funds can be spent. The classifications used in thegovernmental fund financial statements are as follows:

Nonspendable: This classification includes amounts that cannot be spentbecause they are either (a) not in spendable form or (b) are legally orcontractually required to be maintained intact. “Not in spendable form”includes items that are not expected to be converted to cash (such as inventoriesand prepaid amounts) and items such as long term amount of loans and notesreceivable, as well as property acquired for resale. The corpus (or principal) of apermanent fund is an example of an amount that is legally or contractuallyrequired to be maintained intact.

Restricted: This classification includes amounts for which constraints have beenplaced on the use of the resources either (a) externally imposed by creditors(such as through a debt covenant), grantors, contributors, or laws or regulationsof other governments, or (b) imposed by law through constitutional provisions orenabling legislation.

Committed: The committed fund balance classification includes amounts thatcan be used only for the specific purposes determined by a formal action of thegovernment’s highest level of decision making authority. The City Commission isthe highest level of decision making authority for the government that can, byadoption of a resolution prior to the end of the fiscal year, commit fund balance.Once adopted, the limitation imposed by the resolution remains in place until asimilar action is taken (the adoption of another resolution) to remove or revisethe limitation.

31



Assigned: Amounts in the assigned fund balance classification are intended tobe used by the government for specific purposes but do not meet the criteria tobe classified as committed. The City Commission has by resolution authorizedthe City Manager to assign fund balance. The City Commission may also assignfund balance as it does when appropriating fund balance to cover a gap betweenestimated revenue and appropriations in the subsequent year’s appropriatedbudget. Unlike commitments, assignments generally only exist temporarily. Inother words, an additional action does not normally have to be taken for theremoval of an assignment. Conversely, as discussed above, an additional actionis essential to either remove or revise a commitment.

Unassigned: This classification includes the residual fund balance for the GeneralFund. This classification represents fund balance that has not been assigned toother funds and that has not been restricted, committed, or assigned to specificpurposes within the General Fund. Unassigned fund balance may also includenegative balances for any governmental fund if expenditures exceed amountsrestricted, committed or assigned for those specific purposes.

Sometimes the government will fund outlays for a particular purpose from both restrictedand unrestricted resources (the total of committed, assigned, and unassigned fundbalance). In order to calculate the amounts to report as restricted, committed, assigned,and unassigned fund balance in the governmental fund financial statements a flowassumption must be made about the order in which the resources are considered to beapplied. It is the government’s policy to consider restricted fund balance to have beendepleted before using any of the components of unrestricted fund balance. Further, whenthe components of unrestricted fund balance can be used for the same purpose, committedfund balance is depleted first, followed by assigned fund balance. Unassigned fund balanceis applied last.

n. Minimum Fund Balance Policy

The City’s policy is to maintain an adequate General Fund balance to meet seasonalshortfalls in cash flow and reduce susceptibility to emergency or unanticipated expendituresand/or revenue shortfalls. The City Commission has adopted a financial standard tomaintain a Hurricane/Emergency and Disaster Recovery Operating Reserve at a minimumlevel of $ 10,000,000 and a Fiscal Stability Reserve of 25% of the General Fund operatingexpenditures to be implemented by September 30, 2017.

o. Use of Estimates

The preparation of financial statements in conformity with accounting principles generallyaccepted in the United States requires management to make estimates and assumptionsthat affect the reported amounts of assets and liabilities and disclosure of contingent assetsand liabilities at the date of the financial statements. Estimates also affect the reportedamounts of revenues and expenditures/expenses during the reporting period. Actualresults could differ from those estimates.

p. Prepaids

Certain payments to vendors reflect costs applicable to future accounting periods and arerecorded as prepaid items in both the government wide and the fund financial statements.The cost of prepaid items is recorded as expenditures/expenses when consumed ratherthan when purchased.

32



q. Inventory

All inventories are valued at cost. The costs of governmental fund type inventories arerecorded as expenditures when purchased rather than when consumed.

r. Date of Management Review

Subsequent events were evaluated by management through May 4, 2016, which is the datethe financial statements were available to be issued.

Note 2 Deposits and Investments

Deposits

In addition to insurance provided by the Federal Depository Insurance Corporation, alldeposits are held in banking institutions approved by the State Treasurer of the State ofFlorida to hold public funds. Under Florida Statutes Chapter 280, Florida Security for PublicDeposits Act, the State Treasurer requires all Florida qualified public depositories to depositwith the Treasurer or banking institution eligible collateral. In the event of a failure of aqualified public depository, the remaining public depositories would be responsible forcovering any resulting losses. Accordingly, all amounts reported as deposits are issued orcollateralized with securities held by the entity or its agent in the entity’s name.

Investments

As required by Florida Statutes, the City has adopted a written investment policy, whichmay, from time to time, be amended by the City. Investments are made in accordance withprovisions of the Florida Statutes and the City’s by laws. The City is authorized to invest inU.S. Government Securities, U.S. Government Agencies, interest bearing time deposit orsavings accounts, the Florida Local Government Surplus Funds Trust Fund,intergovernmental investment pools authorized by Florida Statues and registered moneymarket mutual funds. Investments are carried at fair value as determined by quotedmarket prices.

As of September 30, 2015, the City had the following investments:

Fair Less Than 1 to 5 6 to 10Value One Year Years Years

Certificates of deposit $ 6,124,834 $ 2,052,509 $ 4,072,325 $U.S. Government Agencies 23,391,067 23,391,067

Total $ 29,515,901 $ 2,052,509 $ 4,072,325 $ 23,391,067

Investment Type

Investment Maturities

33


Note 2 Deposits and Investments (continued)

Interest Rate Risk

Interest rate risk is the risk that changes in market interest rates will adversely affect the fairvalue of an investment. Generally, the longer the maturity of an investment, the greaterthe sensitivity of its fair value to changes in market interest rates. The City’s investmentpolicy minimizes interest rate risk by structuring the portfolio so that securities mature tomeet cash requirements for ongoing operations, thereby avoiding the need to sell securitieson the open market prior to maturity and by investing funds only in authorized securities.In addition, the City limits the length to maturity of any U.S. Government Security, U.S.Government Agency or certificate of deposit to a maximum of ten (10) years.

Credit Risk

Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation tothe holder of the investment. This is measured by the assignment of a rating by a nationallyrecognized statistical rating organization. In accordance with the City’s investment policy,the City minimizes credit risk by limiting investments to authorized securities anddiversifying the portfolio on any investment below an AAA rating so that potential losses onindividual securities will be minimized. All U.S. Government Securities are explicitlyguaranteed by the U.S. government and are not subject to credit risk. The U.S. GovernmentAgency investments are rated AA+ by Standard and Poor’s. Investments in certificate ofdeposits are held in qualified public depositories pursuant to Chapter 280.03 of the FloridaStatutes, “Florida Security for Public Deposits Act.” Under the Act, all qualified publicdepositories are required to pledge eligible collateral having market value equal to orgreater than the average daily or monthly balance of all public deposits, times thedepository’s collateral pledging level.

Concentration Credit Risk

The City’s investment policy does not limit its investments in any one issuer for U.S.Government Securities or Agencies or registered money market mutual funds except forTreasury Strips which are limited to 10% of available funds. The City’s investment policydoes limit its investments in certificates of deposits, the Florida Local Government SurplusFunds Trust Funds and intergovernmental investment pools to 50% in any one issuer. GASB40 requires disclosure when the percent is 5% or more in any one issuer. Given the City’srestrictions, the following concentrations are not viewed to be an additional risk to the City.

Fair IssuerValue Percentage

Certificates of deposit:Sabadell United Bank $ 4,072,325 13.80%Coconut Grove Bank 2,052,509 6.95%United States Government Agencies:Federal Home Loan Bank 9,879,948 33.47%Federal Home Loan Mortgage Corp. 1,993,683 6.76%Federal National Mortgage Association 3,983,820 13.50%Federal Farm Credit Bank 7,533,616 25.52%

$ 29,515,901 100.00%

Investment Issuer

34


Note 2 Deposits and Investments (continued)

Custodial Credit Risk

GASB Statement No. 40 requires governments to disclose deposits and investmentsexposed to custodial credit risk. The custodial credit risk for investments is the risk that, inthe event of the failure of the counter party to a transaction, a government may not be ableto recover the value of investment or collateral securities that are in the possession of anoutside party. The City’s investment policy requires all securities, with the exception ofcertificates of deposit, to be held with a third party custodian; and all securities purchasedby, and all collateral obtained by the City should be properly designated as an asset of theCity. The securities must be held in an account separate and apart from the assets of thefinancial institution. Certificates of deposit issued by a local bank or savings and loanassociation may be held in safekeeping at that institution.

Note 3 Receivables

Receivables at September 30, 2015, were as follows:

Accounts Taxes Grants Other Total

General Fund $ 106,387 $ 611,651 $ 4,376 $ 100,322 $ 822,736General CapitalProjects Fund 472,375 472,375Law EnforcementTrust Fund 2,700 2,700Street Maintenanceand Construction Fund 213,420 213,420Building 2,749 2,749Stormwater Fund 85,213 7,370 321,316 413,899

Total $ 194,349 $ 1,304,816 $ 328,392 $ 100,322 $ 1,927,879

Note 4 Note Receivable

In fiscal year 2012, the City entered into a promissory note with a developer for transferdevelopment rights. As consideration for the transfer development rights, the developer hasagreed to pay $ 859,248 together with interest at 4% per annum. The $ 859,248 recorded as a notereceivable has also been recorded as unavailable revenue on the balance sheet governmentalfunds due to availability. On the statement of activities, the $ 859,248 has been previouslyrecognized as revenue.

Note 5 Loan Receivable

In fiscal year 2012, the City entered into an interlocal agreement with the School Board of MiamiDade County, Florida (the “School Board”) to provide financing and cost share in the design andconstruction of classroom additions for the Norman S. Edelcup/Sunny Isles Beach K 8 facility. Aspart of this agreement the City advanced the School Board $ 400,000 during fiscal year 2012 and anadditional $ 1,600,000 during fiscal year 2013. The total advances of $ 2,000,000 earn interest at5% per annum. The balance of this loan and all accrued interest was paid in full in November of2015.

35


Note 6 Capital Assets

Capital asset activity for the year ended September 30, 2015, was as follows:Beginning EndingBalance Increases Decreases Reclassifications Balance

Governmental activities:Capital assets not being depreciated:Land $ 84,648,686 $ 7,033,753 $ $ $ 91,682,439Easements 488,130 488,130Construction in progress 14,282,915 14,907,296 (2,798,500) 26,391,711

Total capital assets notbeing depreciated 99,419,731 21,941,049 (2,798,500) 118,562,280

Capital assets being depreciated:Buildings 19,877,288 10,965 19,888,253Improvements 5,534,627 236,338 5,770,965Machinery and equipment 7,990,604 1,359,258 (31,380) 9,318,482Infrastructure 53,589,164 2,551,197 56,140,361

Total capital assetsbeing depreciated 86,991,683 1,359,258 (31,380) 2,798,500 91,118,061

Less accumulated depreciation for:Buildings (3,229,155) (405,103) (3,634,258)Improvements (2,097,719) (368,708) (2,466,427)Machinery and equipment (5,059,477) (995,338) 24,529 (6,030,286)Infrastructure (7,575,169) (1,185,023) (8,760,192)

Total accumulated depreciation (17,961,520) (2,954,172) 24,529 (20,891,163)

Total capital assetsbeing depreciated, net 69,030,163 (1,594,914) (6,851) 2,798,500 70,226,898

Governmental activitiescapital assets, net $ 168,449,894 $ 20,346,135 $ (6,851) $ $ 188,789,178

Business type activities:Capital assets not being depreciated:Construction in progress $ 343,794 $ 293,880 $ $ $ 637,674

Total capitalassets not beingdepreciated 343,794 293,880 637,674

Capital assets being depreciated:Infrastructure 17,771,409 17,771,409Machinery and equipment 24,475 24,475

Total capitalassets beingdepreciated 17,795,884 17,795,884

Less accumulated depreciation for:Infrastructure (1,810,461) (355,430) (2,165,891)Machinery and equipment (24,475) (24,475)

Total accumulated depreciation (1,834,936) (355,430) (2,190,366)

Total capital assetsbeing depreciated, net 15,960,948 (355,430) 15,605,518

Business typeactivities capitalassets, net $ 16,304,742 $ (61,550) $ $ $ 16,243,192

36


Note 6 Capital Assets (continued)

Depreciation expense was charged to functions/programs of the City as follows:

General government $ 287,978Public safety 641,747Physical environment 1,761,094Transportation 8,664Culture recreation 254,689

Total depreciation expense governmental activities $ 2,954,172

Business type activities:Stormwater $ 355,430

Total depreciation expense business type activities $ 355,430

Note 7 Interfund Transfers

Interfund transfers at September 30, 2015 consisted of the following:

Transfer Out Transfer In Amount

General General Capital Projects 2,800,000General Street Maintenance and

Construction 881,104

Total Transfers $ 3,681,104

The transfer out from the General Fund to the General Capital Projects Fund is to fund capitalexpenditures from the excess of the unassigned General Fund balance. The transfer out from theGeneral Fund to the Street Maintenance and Construction Fund is to cover fund expenditures andincreased costs related to grounds work, utility and maintenance costs.

Note 8 Long Term Liabilities

Governmental Activities

Bank of America Promissory Note On June 8, 2009, the City entered into a $ 20,000,000promissory note agreement with Bank of America to finance the purchase of land locatedwithin the City limits to convert the land into public parks. Principal and interest paymentsare due in equal quarterly installments of $ 368,145 through July 1, 2029. The promissorynote bears interest at a rate of 4.03%. The City covenants to budget and appropriate nonad valorem revenues in amounts sufficient to pay the principal of and interest on the note.

37


Note 8 Long Term Liabilities (continued)

2010 Series Capital Improvement Revenue Bond On March 24, 2010, the City issued theSeries 2010 Capital Improvement Revenue Bond of $ 15,000,000. The bonds were issuedfor the purpose of financing a portion of the costs of development of City property for Cityparks to be located on Collins Avenue and Sunny Isles Boulevard, financing architectural,engineering, environmental, legal and other planning costs related thereto, and payingcosts of issuance of the Bond. Principal and interest payments are due in equal quarterlyinstallments of $ 346,227 through March 23, 2025 with an interest rate of 4.20%. The Citycovenants to budget and appropriate non ad valorem revenues in amounts sufficient to paythe principal of and interest on the Bond. The Bond indenture also requires themaintenance of a minimum debt service coverage ratio of 1.50:1.00.

2011 Series Capital Improvement Revenue and Revenue Refunding Bond On November10, 2011, the City issued the Capital Improvement Revenue and Revenue Refunding Bond,Series 2011, for $ 10,000,000. The Bonds bear interest at 2.38% and mature in November2026. Interest is payable semi annually on the first date of May and November. The Bondwas issued to (1) finance a portion of the costs of development of City parklands, municipalgarage and improvements to existing parks; (2) refund $ 7,575,000 of outstanding 2001ASeries Florida Municipal Loan Council Revenue; and (3) pay costs of issuance of the Bond.The City covenants to budget and appropriate non ad valorem revenues in amountssufficient to pay the principal of and interest on the Bond and the Bond is further securedby a pledge of the half cent sales tax. The Bond indenture also requires the maintenance ofa minimum debt service coverage ratio of 1.50:1.00.

2012 Series Capital Improvement Revenue Refunding Bond On April 20, 2012, the Cityissued the Capital Improvement Revenue Refunding Bond, Series 2012, for $ 10,000,000.The Bonds bear interest at 2.00% and mature in November 2022. Interest is payable semiannually on the first date of May and November. The proceeds plus $ 2,211,150 of Cityfunds were used to refund $ 11,510,000 of outstanding 2002C Series Florida Municipal LoanCouncil Revenue Bonds. The City covenants to budget and appropriate non ad valoremrevenues in amounts sufficient to pay the principal of and interest on the Bond.

Business Type Activities

2013 Series Stormwater Utility Revenue Refunding Bond On April 22, 2013, the Cityissued the 2013 Series Stormwater Utility Revenue Refunding Bonds for $ 4,450,000. TheBonds bear interest at 1.82% and mature in February 2023. Interest is payable quarterly onthe first date of February, May, August and November. The principal and interest aresecured by a pledge of and lien on the stormwater utility fees. The Bond indenture alsorequires the maintenance of a minimum debt service coverage ratio of 1.35:1.00.

38



Annual debt service requirements to maturity for revenue bonds and notes payable are asfollows:

Year EndingSeptember 30, Principal Interest Principal Interest

2016 $ 3,324,282 $ 1,432,914 $ 426,799 $ 58,9452017 3,435,934 1,320,384 434,620 51,1242018 3,548,657 1,207,283 442,584 43,1602019 3,665,452 1,090,096 450,694 35,0492020 3,784,399 971,089 458,953 26,791

2021 2025 18,431,293 2,906,404 1,184,513 29,8442026 2029 6,954,736 520,063

Total $ 43,144,753 $ 9,448,233 $ 3,398,163 $ 244,913

Governmental Activities Business Type Activities

Pledged Revenues: The City’s debt is collateralized by multiple sources. The following tableprovides the revenue pledged for each debt issuance, the amounts of such revenuereceived in the current year, the current year principal and interest paid on the debt, thedate through which the revenue is pledged under the debt agreement, and the totalpledged future revenue for each debt, which is the amount remaining of principal andinterest on the indebtedness at September 30, 2015:

FuturePrincipal Maturities

and PrincipalRevenue Interest and Pledged

Debt issue Pledged Revenue Received Paid Interest Through

Governmental Activities:

Bank of America Promissory note,2010 Series Capital ImprovementRevenue Bond, and the 2012 SeriesCapital Improvement Revenue Legally available non adRefunding Bond valorem revenues $ 14,659,986 $ 3,960,790 $ 43,068,108 2029

2011 Series Capital ImprovementRevenue Refunding Bond Half cent sales tax $ 1,596,308 $ 796,566 $ 9,524,951 2026

Business Type Activities:

2013 Series StormwaterUtility Revenue Refunding Bond Stormwater utility fees $ 996,799 $ 485,743 $ 3,643,075 2023

39



Changes in Long Term Liabilities

The following is a summary of changes in the long term liabilities for the year endedSeptember 30, 2015:

DueBeginning Ending WithinBalance Additions Reductions Balance One Year

Governmental activities:

Bonds and notes payable:Revenue bonds $ 29,917,388 $ $ (2,409,908) $ 27,507,480 $ 2,479,599Notes payable 16,449,964 (812,691) 15,637,273 844,683

Total bonds andnotes payable 46,367,352 (3,222,599) 43,144,753 3,324,282

Other liabilities:Net pension liability 6,627,791 4,340,279 10,968,070Net OPEB obligation 785,000 166,000 951,000Claims and judgments 100,000 977,500 1,077,500 1,077,500Compensated absences 2,579,269 1,433,864 (1,075,163) 2,937,970 293,797

Total other liabilities 10,092,060 6,917,643 (1,075,163) 15,934,540 1,371,297

Long term liabilities $ 56,459,412 $ 6,917,643 $ (4,297,762) $ 59,079,293 $ 4,695,579

Business type activities:Bonds payable:Revenue bonds $ 3,817,281 $ $ (419,118) $ 3,398,163 $ 426,799

Total bonds andnotes payable 3,817,281 (419,118) 3,398,163 426,799

Other liabilities:Net pension liability 66,947 43,841 110,788Net OPEB obligations 10,000 (5,000) 5,000Compensated absences 12,962 15,300 (12,141) 16,121 1,612

Total other liabilities 89,909 59,141 (17,141) 131,909 1,612

Long term liabilities $ 3,907,190 $ 59,141 $ (436,259) $ 3,530,072 $ 428,411

The liability for claims and judgments, compensated absences and OPEB are liquidated bythe General Fund.

Note 9 Employment Retirement Systems

All regular full time employees are covered by: (1) the City of Sunny Isles Beach 401(a) Plan, adefined contribution pension plan, administered by an independent agent, ICMA RetirementCorporation, and authorized by resolution or (2) the Florida Retirement System (“FRS”), a costsharing, multi employer, public employee retirement system, through a defined benefit pensionplan administered by the Department of Management Services Division of Retirement. All parttime employees and elected officials are covered by the FRS Pension Plan. The City’s policy is tofund the annual pension costs in the annual budget. The City has no fiduciary responsibility for theplans.

40


Note 9 Employment Retirement Systems (continued)

401(a):

Under the City of Sunny Isles Beach 401(a) Plan, City and mandatory employee contributions, as apercentage of employee gross wages, were as follows for each employee group: GeneralEmployees 11% and 4%; Management Officers 11% and 6%, City Attorney and City Manager12% and 6%, respectively. Vesting schedules for each employee group range from immediatevesting (100%) for Management Officers to full vesting over various periods of time through 3 yearsfor general employees. Under the 401(a) Plan, benefits depend solely on amounts contributed tothe plan plus investment earnings. The total number of employees for each employee group underthe 401(a) Plan as of September 30, 2015 was as follows: General Employees 8, ManagementOfficers 4 and City Attorney 1.

Florida Retirement System:

On September 29, 2002, the City joined the FRS to provide retirement and survivor benefits to alleligible City employees. On this date, the employees had the option of making a one time electionof remaining in the 401(a) Plan or choosing the FRS. All eligible employees hired on or afterSeptember 30, 2002 were included in the FRS.

As provided by Chapters 121 and 112, Florida Statutes, the Florida Retirement System (“FRS”)provides two cost sharing, multiple employer defined benefit plans administered by the FloridaDepartment of Management Services, Division of Retirement, including the FRS Pension Plan(“Pension Plan”) and the Retiree Health Insurance Subsidy (“HIS Plan”). The FRS providesretirement and disability benefits, annual cost of living adjustments, and death benefits to planmembers and beneficiaries. Benefits are established by Chapter 121, Florida Statutes, and Chapter60S, Florida Administrative Code. Amendments to the law can be made only by an act of theFlorida State Legislature.

The State of Florida annually issues a publicly available financial report that includes financialstatements and required supplementary information for the FRS. The latest available report maybe obtained by writing to the State of Florida Division of Retirement, Department of ManagementServices, P.O. Box 9000, Tallahassee, Florida 32315 9000, by calling (877) 377 1737, or by visitinghttp://www.dms.myflorida.com/workforce_operations/retirement/publications.

Pension Plan

Plan Description The Pension Plan is a cost sharing multiple employer defined benefit pensionplan, with a Deferred Retirement Option Program (“DROP”) for eligible employees.

41



Benefits Provided Benefits under the Pension Plan are computed on the basis of age, average finalcompensation, and service credit. For Pension Plan members enrolled before July 1, 2011, Regularclass members who retire at or after age 62 with at least six years of credited service or 30 years ofservice regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6%of their final average compensation based on the five highest years of salary, for each year ofcredited service. Vested members with less than 30 years of service may retire before age 62 andreceive reduced retirement benefits. Special Risk Administrative Support class members who retireat or after age 55 with at least six years of credited service or 25 years of service regardless of ageare entitled to a retirement benefit payable monthly for life, equal to 1.6% of their final averagecompensation based on the five highest years of salary, for each year of credited service. SpecialRisk class members (sworn law enforcement officers, firefighters, and correctional officers) whoretire at or after age 55 with at least six years of credited service, or with 25 years of serviceregardless of age, are entitled to a retirement benefit payable monthly for life, equal to 3.0% oftheir final average compensation based on the five highest years of salary for each year of creditedservice. Senior Management Service class members who retire at or after age 62 with at least sixyears of credited service or 30 years of service regardless of age are entitled to a retirement benefitpayable monthly for life, equal to 2.0% of their final average compensation based on the fivehighest years of salary for each year of credited service. Elected Officers’ class members who retireat or after age 62 with at least six years of credited service or 30 years of service regardless of ageare entitled to a retirement benefit payable monthly for life, equal to 3.0% (3.33% for judges andjustices) of their final average compensation based on the five highest years of salary for each yearof credited service.

For Plan members enrolled on or after July 1, 2011, the vesting requirement is extended to eightyears of credited service for all these members and increasing normal retirement to age 65 or 33years of service regardless of age for Regular, Senior Management Service, and Elected Officers’class members, and to age 60 or 30 years of service regardless of age for Special Risk and SpecialRisk Administrative Support class members. Also, the final average compensation for all thesemembers will be based on the eight highest years of salary.

As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the PensionPlan before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost ofliving adjustment is three percent per year. If the member is initially enrolled before July 1, 2011,and has service credit on or after July 1, 2011, there is an individually calculated cost of livingadjustment. The annual cost of living adjustment is a proportion of three percent determined bydividing the sum of the pre July 2011 service credit by the total service credit at retirementmultiplied by three percent. Plan members initially enrolled on or after July 1, 2011, will not have acost of living adjustment after retirement.

In addition to the above benefits, the DROP program allows eligible members to defer receipt ofmonthly retirement benefit payments while continuing employment with a FRS employer for aperiod not to exceed 60 months after electing to participate. Deferred monthly benefits are held inthe FRS Trust Fund and accrue interest. There are no required contributions by DROP participants.

42



Contributions Effective July 1, 2011, all enrolled members of the FRS, other than DROPparticipants, are required to contribute three percent of their salary to the FRS. In addition tomember contributions, governmental employers are required to make contributions to the FRSbased on state wide contribution rates established by the Florida Legislature. These rates areupdated as of July 1 of each year. The employer contribution rates by job class for the periods fromOctober 1, 2014 through June 30, 2015 and from July 1, 2015 through September 30, 2015,respectively, were as follows: Regular 7.37% and 7.26%; Special Risk Administrative Support42.07% and 32.95%; Special Risk 19.82% and 22.04%; Senior Management Service 21.14% and21.43%; Elected Officers’ 43.24% and 42.27%; and DROP participants 12.28% and 12.88%. Theseemployer contribution rates include 1.26% and 1.66% HIS Plan subsidy for the periods October 1,2014 through June 30, 2015 and from July 1, 2015 through September 30, 2015, respectively.

The City’s contributions, including employee contributions, to the Pension Plan totaled $ 1,933,623for the fiscal year ended September 30, 2015.

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows ofResources Related to Pensions At September 30, 2015, the City reported a liability of $ 6,961,137for its proportionate share of the Pension Plan’s net pension liability. The net pension liability wasmeasured as of June 30, 2015, and the total pension liability used to calculate the net pensionliability was determined by an actuarial valuation as of July 1, 2015. The City’s proportion of thenet pension liability was based on a projection of the City’s 2014 15 fiscal year contributionsrelative to the 2013 14 fiscal year contributions of all participating members. At June 30, 2015, theCity’s proportion was .053894033 percent, which was an increase of .002760034 percentage pointsfrom its proportion measured as of June 30, 2014.

For the year ended September 30, 2015, the City recognized pension expense of $ 766,623. AtSeptember 30, 2015, the City reported deferred outflows of resources and deferred inflows ofresources related to pensions from the following sources:

FRSDeferred Deferred

Outflows of Inflows ofResources Resources

Differences between expected andactual experience $ 734,890 $ (165,097)Changes of assumptions 462,034Net difference between projected andactual earnings on pension planinvestments (1,662,203)Changes in proportion and differencesbetween City contributions andproportionate share of contributions 362,236 (446,767)City contributions subsequent tothe measurement date 314,396

Total $ 1,873,556 $ (2,274,067)

43



The amounts reported as deferred outflows of resources and deferred inflows of resources relatedto pensions will be recognized in pension expense as follows:

Year EndedSeptember 30:

2016 $ (271,837)2017 $ (586,233)2018 $ (586,233)2019 $ 785,1372020 $ 196,551

Thereafter $ 62,104

Actuarial Assumptions The total pension liability in the June 30, 2015 actuarial valuation wasdetermined using the following actuarial assumptions, applied to all periods included in themeasurement:

Inflation 2.60%Salary increases 3.25%, average, including inflationInvestment rate of return 7.65%, net of pension plan investment

expense, including inflation

Mortality rates were based on the Generational RP 2000 with Projection Scale BB tables.

The actuarial assumptions used in the July 1, 2015, valuation were based on the results of anactuarial experience study for the period July 1, 2008 through June 30, 2013. There were nochanges in actuarial assumptions.

The long term expected rate of return on Pension Plan investments was not based on historicalreturns, but instead is based on a forward looking capital market economic model. The allocationpolicy’s description of each asset class was used to map the target allocation to the asset classesshown below. Each asset class assumption is based on a consistent set of underlying assumptionsand includes an adjustment for the inflation assumption. The target allocation and best estimatesof arithmetic and geometric real rates of return for each major asset class are summarized in thefollowing table:

CompoundAnnual Annual

Target Arithmetic (Geometric) StandardAsset Class Allocation (1) Return Return Deviation

Cash 1.0% 3.2% 3.1% 1.7%Fixed income 18.0% 4.8% 4.7% 4.7%Global equity 53.0% 8.5% 7.2% 17.7%Real estate (property) 10.0% 6.8% 6.2% 12.0%Private equity 6.0% 11.9% 8.2% 30.0%Strategic investments 12.0% 6.7% 6.1% 11.4%

Total 100.0%

Assumed Inflation Mean 2.6% 1.9%

(1) As outlined in the Pension Plan's investment policy

44



Discount Rate The discount rate used to measure the total pension liability was 7.65%. ThePension Plan’s fiduciary net position was projected to be available to make all projected futurebenefit payments of current active and inactive employees. Therefore, the discount rate forcalculation the total pension liability is equal to the long term expected rate of return.

Sensitivity of the City’s proportion share of the net pension liability to changes in the discount rateThe following presents the City’s proportionate share of the net pension liability calculated usingthe discount rate of 7.65 percent, as well as what the City’s proportionate share of the net pensionliability would be if it were calculated using a discount rate that is 1 percentage point lower (6.65percent) or 1 percentage point higher (8.65 percent) than the current rate:

Current1% Discount 1%

Decrease Rate Increase(6.65%) (7.65%) (8.65%)

City's proportionate share of thenet pension liability (asset)for FRS $ 18,037,881 $ 6,961,137 $ (2,256,533)

HIS Plan:

Plan Description The HIS Plan is a cost sharing multiple employer defined benefit pension planestablished under Section 112.363, Florida Statutes, and may be amended by the FloridaLegislature at any time. The benefit is a monthly payment to assist retirees of State administeredretirement systems in paying their health insurance costs and is administered by the FloridaDepartment of Management Services, Division of Retirement.

Benefits Provided For the fiscal year ended September 30, 2015, eligible retirees and beneficiariesreceived a monthly HIS payment of $ 5 for each year of creditable service completed at the time ofretirement, with a minimum HIS payment of $ 30 and a maximum HIS payment of $ 150 per month.To be eligible to receive these benefits, a retiree under a State administered retirement systemmust provide proof of health insurance coverage, which may include Medicare.

Contributions The HIS Plan is funded by required contributions from FRS participating employersas set by the Florida Legislature. Employer contributions are a percentage of gross compensationfor all active FRS members. For the fiscal year ended September 30, 2015, the HIS contribution forthe period October 1, 2014 through June 30, 2015 and from July 1, 2015 through September 30,2015 was 1.26% and 1.66%, respectively. The City contributed 100% of its statutorily requiredcontributions for the current and preceding three years. HIS Plan contributions are deposited in aseparate trust fund from which payments are authorized. HIS Plan benefits are not guaranteed andare subject to annual legislative appropriation. In the event legislative appropriation or availablefunds fail to provide full subsidy benefits to all participants, benefits may be reduced or cancelled.

The City’s contributions to the HIS Plan totaled $ 21,543 for the fiscal year ended September 30,2015.

45



Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows ofResources Related to Pensions At September 30, 2015, the City reported a liability of $ 4,117,721for its proportionate share of the HIS Plan’s net pension liability. The net pension liability wasmeasured as of June 30, 2015, and the total pension liability used to calculate the net pensionliability was determined by an actuarial valuation as of July 1, 2015. The City’s proportionate shareof the net pension liability was based on the City’s 2014 15 fiscal year contributions relative to the2013 14 fiscal year contributions of all participating members. At June 30, 2015, the City’sproportionate share was .040376046 percent, which was an increase of .002143754 percent fromits proportionate share measured as of June 30, 2014.

For the fiscal year ended September 30, 2015, the City recognized pension expense of $ 221,223. Inaddition the City reported deferred outflows of resources and deferred in flows of resourcesrelated to pensions from the following sources:

Deferred DeferredOutflows of Inflows of

Description Resources Resources

Change of assumptions $ 323,957 $

Net difference between projected and actualearnings on HIS Plan investments 2,229

Changes in proportion and differencesbetween City HIS Plan contributionsand proportionate share of contributions 336,031

City HIS Plan contributions subsequentto the measurement date 47,426

Total $ 709,643 $

The amounts reported as deferred outflows of resources and deferred inflows of resources relatedto the HIS Plan will be recognized in pension expense as follows:

Year EndedSeptember 30:

2016 $ 163,3032017 $ 115,8772018 $ 115,8772019 $ 115,4242020 $ 115,207

Thereafter $ 83,955

46



Actuarial Assumptions The total pension liability in the July 1, 2015, actuarial valuation wasdetermined using the following actuarial assumptions, applied to all periods included in themeasurement:

Inflation 2.60 %Salary increases 3.25%, average, including inflationMunicipal bond rate 3.80 %

Mortality rates were based on the Generational RP 2000 with Projection Scale BB tables.

Because the HIS Program is funded on a pay as you go basis, no experience study has beencompleted for that program. The actuarial assumptions that determined the total pension liabilityfor the HIS Program were based on certain results of the most recent experience study for the FRSPension Plan. The municipal rate used to determine total pension liability was decreased from4.29% to 3.80%.

Discount Rate The discount rate used to measure the total pension liability was 3.80%. In general,the discount rate for calculating the total pension liability is equal to the single rate equivalent todiscounting at the long term expected rate of return for benefit payments prior to the projecteddepletion date. Because the HIS benefit is essentially funded on a pay as you go basis, thedepletion date is considered to be immediate, and the single equivalent discount rate is equal tothe municipal bond rate selected by the HIS Plan sponsor. The Bond Buyer General Obligation 20Bond Municipal Bond Index was adopted as the applicable municipal bond index.

Sensitivity of the County’s Proportionate Share of the Net Position Liability to Changes in theDiscount Rate The following represents the City’s proportionate share of the net pension liabilitycalculated using the discount rate of 3.80%, as well as what the City’s proportionate share of thenet pension liability would be if it were calculated using a discount rate that is one percentagepoint lower (2.80%) or one percentage point higher (4.80%) than the current rate:

Current1% Discount 1%

Decrease Rate Increase(2.80%) (3.80%) (4.80%)

City's proportionate share ofthe net pension liability $ 4,691,952 $ 4,117,721 $ 3,638,900

Note 10 Other Post Employment Benefits

Plan Description

The City provides a single employer defined benefit post employment health insurance plan foremployees and sworn officers. The plan allows its employees and their beneficiaries, at their owncost and until the attainment of age 62, to continue to obtain health, dental and vision insurancebenefits upon retirement. The benefits of the plan conform with Florida Statutes, which are thelegal authority for the plan. The plan has no assets and does not issue a separate financial report.

47


Note 10 Other Post Employment Benefits (continued)

Funding Policy and Annual OPEB Cost

The City does not directly make a contribution to the plan on behalf of retirees. Retirees and theirbeneficiaries pay the same group rates as are charged to the City for active employees by itshealthcare provider. However, the City’s actuaries, in their actuarial valuation, calculate an offsetto the cost of these benefits as an employer contribution, based upon an implicit rate subsidy. Thisoffset equals the total age adjusted costs paid by the City for its active employees for coverage ofthe retirees and their dependents for the year net of the retiree’s own payments for the year.

The annual other post employment benefit (OPEB) cost is calculated based on the annual requiredcontribution of the employer, an amount actuarially determined in accordance with GASBStatement No. 45. The annual required contribution represents a level of funding that, if paid onan ongoing basis, is projected to cover normal cost each year and to amortize any unfundedactuarial liabilities over a period not to exceed 15 years.

The annual OPEB cost for the City for the current year and the related information is as follows:

Required contribution rates:Employer Pay as you goPlan members N/AAnnual required contribution $ 284,000Interest on net OPEB obligation 32,000Adjustment to annual required contribution (69,000)Annual OPEB cost 247,000Contributions made (84,000)Interest on contributions made (2,000)Increase in net OPEB obligation 161,000Net OPEB obligation beginning of year 795,000Net OPEB obligation end of year $ 956,000

The annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the netOPEB obligation for 2015 and the two preceding years were as follows:

Fiscal year ended 9/30/2015 9/30/2014 9/30/2013Annual OPEB cost $ 247,000 169,000 $ 167,000Percentage of OPEB 35% 33% 33%cost contributedNet OPEB obligation $ 956,000 795,000 $ 681,000

Funded Status and Funding Progress

The funded status of the plan as of October 1, 2015 was as follows:

Actuarial accrued liability $ 1,404,000Actuarial value of plan assetsUnfunded actuarial accrued liability (UAAL) $ 1,404,000Funded ratioCovered payroll $ 12,263,000UAAL as a percentage of covered payroll 11.4%

48


Note 10 Other Post Employment Benefits (continued)

The actuarial valuation for the calculation of OPEB involves estimates of the value of reportedamounts and assumptions about the probability of events in the future. Amounts determinedregarding the funded status of the plan and the annual required contributions of the employer aresubject to continual revision as actual results are compared to past expectations and new estimatesare made about the future. The required schedule of funding progress presented as requiredsupplementary information is designed to provide multi year trend information to show whetherthe actuarial value of plan assets is increasing or decreasing over time relative to the actuarialaccrued liability for benefits. However, the City has not contributed assets to the plan at this time.

Actuarial Methods and Assumptions

Projections of benefits are based on the substantive plan (the plan as understood by the employerand plan members) and include the types of benefits in force at the valuation date and the patternof sharing benefit costs between the City and the plan members to that point. Actuarialcalculations reflect a long term perspective and employ methods and assumptions that aredesigned to reduce short term volatility in actuarial accrued liabilities and the actuarial value ofassets. Significant methods and assumptions were as follows:

Actuarial valuation date 10/1/15Actuarial cost method Projected unit creditAmortization method 15 year open period; level dollar paymentActuarial assumptions:Investment rate of return 4.00% per annum*Healthcare cost trend ratesSelect rates 8.00% for 2015/2016 graded

to 5.50% for 2020/2021Ultimate rate 5% per annum

* Includes inflation at 2.75% per annum

Note 11 Deferred Compensation Plan

The City offers its employees a deferred compensation plan created in accordance with InternalRevenue Service (“IRS”) Code Section 457. The plan, administered by the ICMA RetirementCorporation, available to all City employees, permits them to defer a portion of their salaries untilfuture years. Participation in the plan is optional. The deferred compensation is generally notavailable to employees until termination, retirement, death or the hardship distribution criteria asdefined in IRS Code Section 457. The assets of the plan are held in trust and are the sole property ofthe participants; therefore, no balances or financial information is reported in the basic financialstatements.

Note 12 Commitments and Contingencies

Litigation

The City is a defendant in various lawsuits including personal injury, property damage and othermiscellaneous claims. For one of these cases the City has accrued a settlement of approximately$ 1,100,000 in the governmental activities. The remainder of the legal proceedings are incidentalto the City’s operations, the outcome of which, in the opinion of management and legal counsel,would not have a material adverse effect on the financial condition of the City.

49


Note 12 Commitments and Contingencies (continued)

Risk Management

The City is exposed to various risks of loss related to torts, theft of, damage to, and destruction ofassets; errors and omissions; injuries to employees; and natural disasters. The City purchasescommercial insurance to cover the various risks. There were no reductions in insurance coveragesfrom coverages in the prior year. There were no settled claims that have exceeded insurancecoverage for each of the past three years.

Construction Commitments

The City has various pending, ongoing and future capital improvement projects. These projectsconsist primarily of the Gateway Park and Parking Garage, the 174th Street project and other minorcapital projects. The remaining commitments on these projects are approximately $ 1.50 million,$ 2.61 million and $ 812,000 in remaining commitments, respectively.

Grants

Grant monies received and disbursed by the City are for specific purposes and may be subject toaudit by the grantor agencies. Such audits may result in requests for reimbursements due todisallowed expenditures or other action by grantor agencies. The City does not believe that suchdisallowances or other actions taken by the grantor agencies, if any, would have a material effecton the financial position of the City.

Note 13 Leases

Operating Leases, City as Lessor

The City has several lease agreements with private entities at locations within the City limits. Thelease terms range between 6 months and 40 years. Under the terms of the leases, the tenants areresponsible for all expenses associated with the leased location.

The following is a schedule of approximate minimum rent revenue under the lease agreements.

Year EndingSeptember 30,

2016 $ 888,0002017 930,0002018 931,0002019 890,0002020 848,000

Thereafter 20,812,000

$ 25,299,000

As of September 30, 2015, leased assets consist of the following:Accumulated Net Book

Cost Depreciation Value

Land $ 4,342,723 $ $ 4,342,723Building 945,000 240,975 704,025

Total $ 5,287,723 $ 240,975 $ 5,046,748

50


Note 14 Joint Venture

On or about November 25, 2008, the City entered into a public/private partnership agreement withDr. Robert Cornfeld, the owner of the Newport Hotel, to share design and construction costs torebuild the entire Historic Newport Pier (the “Pier”), which was severely damaged by HurricaneWilma in 2005. In accordance with the agreement, the City accepted ownership of the Pier byentering into the submerged land lease with the State of Florida to facilitate the construction of thePier. The partnership agreement further provided that Dr. Cornfeld was required to contribute $ 2million dollars for the design and construction costs of the Pier. Similarly, the City was required tocontribute $ 2 million dollars for the design and construction costs of the Pier. Further, theagreement provides that the City would be responsible for any cost overruns that exceed the totalcontribution of $ 4 million dollars from both parties. The City and Dr. Cornfeld also agreed to splitrevenues on a 50/50 basis from leasing the restaurant to be constructed on the Pier. The 50/50split would occur after the City was able to deduct operational expenses from the revenues.

On or about July 26, 2013, the City entered into a management agreement with AmericanFederated Title Corp., (the “Corp”) a corporate entity affiliated with Dr. Cornfeld, to manage thePier as it relates to admission of residents and visitors to the Pier. The management agreementprovided the City with the right to determine Pier admission fees. The agreement was for five (5)years with the option to renew the agreement for three (3) additional five (5) year terms, providedthe Corp is not in default at the time of the renewal of the terms. The City has the right toterminate the management agreement at will. During the current fiscal year, the managementagreement with the Corp described above was amended. The City and the Corp agreed that anyfunds received from admission to the Pier would not be used to cover expenses, but would simplybe split 50/50 between the parties. Each entity would be responsible for their own operationalexpenses.

During the fiscal year ended September 30, 2014, the City entered into a sublease agreement withthe Corp and Beach Bar @ Newport Pier, LLC (“Beach Bar”) whereby Beach Bar will sublease theentire leased premises consisting of the restaurant facility, bait shop, second floor of restaurantfacility and additional outdoor dining area in the premises. The initial term of the sublease is a ten(10) year term, with Beach Bar reserving the right to renew for four (4) additional terms of five (5)years. Beach Bar shall pay the City a base monthly rent of fifteen thousand dollars ($ 15,000), plusall applicable sales tax, with the base rent being subject to increase in the consumer price index(“CPI”). In addition to the base monthly rent, Beach Bar shall pay to Corp for each year of thesublease terms, as percentage rent, an amount equal to the amount of annual gross sales times thefollowing applicable percentages:

$ 00.00 $ 2,000,000 5%$ 2,000,001 $ 3,999,999 7.5%$ 4,000,000 $ 5,000,000 10%$ 5,000,001 $ 6,000,000 11%$ 6,000,001 $ 7,000,000 12%$ 7,000,001 $ 8,000,000 13%$ 8,000,001 $ 9,000,000 14%$ 9,000,001 no limit 16%

The foregoing agreements may be modified by the parties based on change in circumstances.

51


Note 15 Change in Accounting Principle

During the year ended September 30, 2015, the City adopted GASB Statement No. 68, Accountingand Financial Reporting for Pensions. This pronouncement requires the restatement of theSeptember 30, 2014, net position of the governmental activities, business type activities andStormwater Fund.

Governmental Business Type StormwaterActivities Activities Fund

Net Position, September 30, 2014, $ 173,174,080 $ 13,641,996 $ 13,641,996as previously reported

Cumulative Affect of Applicationof GASB 68, Net PensionLiability (11,330,789) (114,452) (114,452)

Net Position, September 30, 2014,as restated $ 161,843,291 $ 13,527,544 $ 13,527,544

REQUIRED SUPPLEMENTARY INFORMATION(OTHER THAN MD&A)

See notes to budgetary comparison schedule.

52

ActualOriginal Final Amounts Variance

Revenues:Taxes:Real and personal property $ 19,100,269 $ 19,100,269 $ 19,186,170 $ 85,901Utility taxes:Electric 2,400,000 2,400,000 2,469,148 69,148Telecommunication 1,100,000 1,100,000 990,816 (109,184)Water 780,000 780,000 805,211 25,211Gas 30,000 30,000 37,442 7,442

Total utility taxes 4,310,000 4,310,000 4,302,617 (7,383)

Total taxes 23,410,269 23,410,269 23,488,787 78,518

Franchise fees 1,312,750 1,312,750 1,340,338 27,588

Intergovernmental:State revenue sharing 313,000 313,000 404,488 91,488Other state taxes 20,000 20,000 29,305 9,305Half cent sales tax 1,500,000 1,500,000 1,596,308 96,308

Total intergovernmental 1,833,000 1,833,000 2,030,101 197,101

Licenses and permits 663,000 663,000 859,375 196,375

Charges for services 3,526,540 3,413,993 3,986,239 572,246

Fines and forfeitures 310,000 310,000 565,045 255,045

Investment income 190,000 190,000 579,191 389,191

Miscellaneous 830,143 830,143 1,036,404 206,261

Total revenues $ 32,075,702 $ 31,963,155 $ 33,885,480 $ 1,922,325



Budgeted Amounts

Schedule of Revenues, Expenditures and Changes inFund Balance Budget and Actual General Fund

See notes to budgetary comparison schedule.

53


Expenditures:Current:General government:City commission $ 297,478 $ 299,646 $ 225,094 $ 74,552City manager 634,581 641,860 604,183 37,677Finance 803,854 813,359 740,844 72,515Legal 700,856 708,163 671,647 36,516City clerk 372,206 380,990 349,090 31,900Human resources 1,052,718 863,827 659,796 204,031Information technology 1,231,871 1,204,005 1,026,764 177,241Risk management 796,200 796,200 789,242 6,958

Total general government 5,889,764 5,708,050 5,066,660 641,390

Public safety:Police 7,780,430 7,804,374 7,539,962 264,412Ocean Rescue 1,826,370 1,850,695 1,791,406 59,289Community development 1,247,402 1,356,396 1,231,906 124,490

Total public safety 10,854,202 11,011,465 10,563,274 448,191

Community services:Physical environment 2,072,953 2,086,589 1,717,270 369,319Cultural and human services 5,242,326 5,338,151 4,528,367 809,784

Total community services 7,315,279 7,424,740 6,245,637 1,179,103

Debt service:Principal 3,222,529 3,222,529 3,222,599 (70)Interest and fiscal charges 1,534,826 1,534,826 1,534,757 69

Total debt service 4,757,355 4,757,355 4,757,356 (1)

Capital outlay 803,313 1,067,745 759,498 308,247

Total expenditures 29,619,913 29,969,355 27,392,425 2,576,930

Excess of revenues over expenditures 2,455,789 1,993,800 6,493,055 4,499,255

Other Financing Sources (Uses):Sale of property and equipment 10,000 10,000 3,876 (6,124)Insurance recoveries 81,116 81,116Appropriations of prior year reserves (1,594,000) 1,677,304 (1,677,304)Transfers out (871,789) (3,681,104) (3,681,104)

Total other financing sources (uses) (2,455,789) (1,993,800) (3,596,112) (1,602,312)

Net change in fund balance $ $ $ 2,896,943 $ 2,896,943

Budgeted Amounts


For the Year Ended September 30, 2015(continued)

Schedule of Revenues, Expenditures and Changes inFund Balance Budget and Actual General Fund

54

City of Sunny Isles Beach, FloridaNotes to Budgetary Comparison SchedulesSeptember 30, 2015

Note 1 Budgets and Budgetary Accounting

An annual appropriated budget is adopted for the General Fund, Street Maintenance andConstruction Fund, Building Fund, General Capital Projects Fund, and the Public Art Trust Fund on abasis consistent with accounting principles generally accepted in the United States. The Cityfollows these procedures in establishing the budgetary data reflected in the basic financialstatements.

(a) The City Manager submits to the City Commission a proposed operating and capitalbudget for the ensuing fiscal year. The budget includes proposed expenditures andthe means of financing them.

(b) Public hearings are conducted to obtain taxpayer comments.

(c) Prior to October 1, the budget is legally enacted through passage of an ordinance.

(d) The City Commission, by ordinance, may make supplemental appropriations for theyear.

(e) Formal budgetary integration is employed as a management control device duringthe period for the General Fund.

(f) The City Manager is authorized to transfer part or all of an unencumberedappropriation balance within departments within a fund; however, any revisionsthat alter the total appropriations of any department of a fund must be approved bythe City Commission. The legal level of control at which expenditures may notlegally exceed appropriations is at the department level.

(g) Encumbered appropriations lapse at fiscal year end. Encumbered amounts arereappropriated in the following year’s budget.

(h) Budgeted amounts are as originally adopted or as amended.

55

An analysis of funding progress for the Unfunded Actuarial Accrued Liability (UAAL) for themost recent actuarial valuation date available is presented as follows:

ActuarialAccrued UAAL as a

Actuarial Liability Unfunded PercentageActuarial Value of (AAL) AAL Funded Covered of CoveredValuation Assets Entry Age (UAAL) Ratio Payroll Payroll

Date (a) (b) (b a) (a/b) (c)* ((b a)/c)

7/1/2011 859,000 859,000 0% 7,996,000 10.7%10/1/2013 1,035,000 1,035,000 0% 9,353,000 11.1%10/1/2015 1,404,000 1,404,000 0% 12,263,000 11.4%

* Covered payroll is for the calendar year period used for the actuarial valuation.

City of Sunny Isles Beach, FloridaSchedule of Funding ProgressOther Post Employment Benefits Plan(Unaudited)

56

2015 2014

City of Sunny Isles Beach's proportion ofthe net pension liability 0.00053894033 0.00051133999

City of Sunny Isles Beach's proportionate share ofthe net pension liability $ 6,961,137 $ 3,119,926

City of Sunny Isles Beach's covered employee payroll $ 13,000,622 $ 12,258,101

City of Sunny Isles Beach's proportionate shareof the net pension liability as a percentage ofits covered employee payroll 53.54% 25.45%

Plan fiduciary net position as a percentage oftotal pension liability 92.00% 96.09%

* This schedule is intended to present information for ten years. However,until a full ten year trend is compiled, the pension plan will presentinformation for those years for which the information is available.

City of Sunny Isles Beach, FloridaSchedule of Proportionate Share of Net Pension LiabilityFlorida Retirement System Pension PlanLast 10 Fiscal Years *(Unaudited)

57

City of Sunny Isles Beach, FloridaSchedule of Proportionate Share of Net Pension LiabilityRetiree Health Insurance Subsidy ProgramLast 10 Fiscal Years *(Unaudited)

2015 2014

City of Sunny Isles Beach's proportion ofthe net pension liability 0.00040376046 0.00038232292

City of Sunny Isles Beach's proportionate share ofthe net pension liability $ 4,117,721 $ 3,574,813


City of Sunny Isles Beach's proportionate shareof the net pension liability as a percentage ofits covered employee payroll 31.67% 29.16%

Plan fiduciary net position as a percentage oftotal pension liability 0.50% 0.99%


58

2015 2014

Contractually required contribution $ 1,567,372 $ 1,414,159

Contributions in relation to the contractuallyrequired contribution 1,567,372 1,414,159

Contribution deficiency (excess) $ $


Contributions as a percentage of covered payroll 12.06% 11.54%


City of Sunny Isles Beach, FloridaSchedule of ContributionsFlorida Retirement System Pension PlanLast 10 Fiscal Years *(Unaudited)

59

2015 2014

Contractually required contribution $ 21,543 $ 17,388

Contributions in relation to the contractuallyrequired contribution 21,543 17,388

Contribution deficiency (excess) $ $


Contributions as a percentage of covered payroll 0.17% 0.14%


City of Sunny Isles Beach, FloridaSchedule of ContributionsRetiree Health Insurance Subsidy ProgramLast 10 Fiscal Years *(Unaudited)

60

2015 2014

Annual money weighted annual rate of return,net of investment expenses 3.77% 17.57%

* Schedule is intended to show information for ten years. Additional years will be displayed as they becomeavailable.

City of Sunny Isles Beach, FloridaSchedule of Investment ReturnsFlorida Retirement System Pension PlanLast 10 Fiscal Years *(Unaudited)

61

2015 2014

Annual money weighted annual rate of return,net of investment expenses 3.77% 17.57%

* Schedule is intended to show information for ten years. Additional years will be displayed as they becomeavailable.

City of Sunny Isles Beach, FloridaSchedule of Investment ReturnsRetiree Health Insurance Subsidy ProgramLast 10 Fiscal Years *(Unaudited)

OTHER FINANCIAL INFORMATION

62

StreetMaintenance Public

and ArtConstruction Building Trust

Fund Fund Fund TotalAssets:Cash and cash equivalents $ 388,853 $ 1,110,991 $ 15,443 $ 1,515,287Investments 463,565 1,324,454 18,411 1,806,430Receivables, net 213,420 2,749 216,169Interest receivable 1,980 5,657 79 7,716Inventory 3,720 3,720Prepaid expenses 360 360

Total assets $ 1,071,538 $ 2,444,211 33,933 $ 3,549,682

Liabilities:Accounts payable $ 34,336 $ 4,945 $ $ 39,281Accrued liabilities 35,711 127,963 163,674

Total liabilities 70,047 132,908 202,955

Deferred Inflows of Resources:Deferred inflows of resources:Unavailable revenue taxes 68,742 68,742

Total deferred inflowsof resources 68,742 68,742

Fund Balances:Nonspendable:Inventory 3,720 3,720Prepaid expenses 360 360Restricted for:Building 2,310,943 2,310,943Public art 33,933 33,933Transportation 929,029 929,029

Total fund balances 932,749 2,311,303 33,933 3,277,985

Total liabilities, deferredinflows of resourcesand fund balances $ 1,071,538 $ 2,444,211 $ 33,933 $ 3,549,682

City of Sunny Isles Beach, FloridaCombining Balance Sheet Nonmajor Governmental FundsSeptember 30, 2015

63

StreetMaintenance Public

and ArtConstruction Building Trust

Fund Fund Fund TotalRevenues:Impact fees $ $ $ 34,000 $ 34,000Intergovernmental 1,185,034 1,185,034Licenses and permits 7,300 3,733,311 3,740,611Charges for services 18,150 18,150Investment income 10,203 49,003 408 59,614

Total revenues 1,202,537 3,800,464 34,408 5,037,409

Expenditures:Current:General government 2,901,374 2,901,374Cultural and human services 475 475Transportation 1,521,925 1,521,925Capital outlay 6,615 96,923 103,538

Total expenditures 1,528,540 2,998,297 475 4,527,312

Excess (deficiency) ofrevenues over expenditures (326,003) 802,167 33,933 510,097

Other Financing Sources:Transfers in 881,104 881,104

Total other financing source 881,104 881,104

Net change infund balances 555,101 802,167 33,933 1,391,201

Fund Balances, Beginning of Year 377,648 1,509,136 1,886,784

Fund Balances End of Year $ 932,749 $ 2,311,303 $ 33,933 $ 3,277,985

City of Sunny Isles Beach, FloridaCombining Statement of Revenues, Expenditures and Changes inFund Balances Nonmajor Governmental FundsFor the Year Ended September 30, 2015

64


Revenues:Intergovernmental $ 1,073,828 $ 1,073,828 $ 1,185,034 $ 111,206Licenses and permits 7,300 7,300Investment income 1,000 1,000 10,203 9,203

Total revenues $ 1,074,828 $ 1,074,828 $ 1,202,537 $ 127,709

Expenditures:Transportation $ 1,799,391 $ 1,923,706 $ 1,521,925 $ 401,781Capital outlay 126,836 155,727 6,615 149,112

Total expenditures 1,926,227 2,079,433 1,528,540 550,893

Excess (deficiency) ofrevenues over expenditures (851,399) (1,004,605) (326,003) 678,602

Other Financing Sources:Transfers in $ 871,789 $ 881,104 $ 881,104 $Appropriations of prioryear reserves (20,390) 123,501 (123,501)

Total other financing sources 851,399 1,004,605 881,104 (123,501)

Net change in fund balance $ $ $ 555,101 $ 555,101

City of Sunny Isles Beach, FloridaSchedule of Revenues, Expenditures and Changes in Fund Balances


Budgeted Amounts

Budget and Actual Street Maintenance and Construction Fund

65


Revenues:Licenses and permits $ 2,611,620 $ 2,611,620 $ 3,733,311 $ 1,121,691Charges for services 18,150 18,150Investment income 7,500 7,500 49,003 41,503

Total revenues $ 2,619,120 $ 2,619,120 $ 3,800,464 $ 1,181,344

Expenditures:General government $ 3,109,410 $ 3,285,775 $ 2,901,374 $ 384,401Capital outlay 153,800 153,800 96,923 56,877

Total expenditures 3,263,210 3,439,575 2,998,297 441,278

Excess (deficiency) ofrevenues over expenditures (644,090) (820,455) 802,167 1,622,622

Other Financing Sources:Appropriations of prior year reserves 644,090 820,455 (820,455)

Total other financing sources 644,090 820,455 (820,455)




Budgeted Amounts

Schedule of Revenues, Expenditures and Changes inFund Balance Budget and Actual Building Fund

66


Revenues:Impact fees $ 9,561,937 $ 9,561,937 $ 12,792,104 $ 3,230,167Intergovernmental 500,000 500,000 396,962 (103,038)Charges for services 29,755 29,755Investment income 185,000 185,000 867,709 682,709Miscellaneous 120,000 120,000 300,000 180,000

Total revenues $ 10,366,937 $ 10,366,937 $ 14,386,530 $ 4,019,593

Expenditures:Capital outlay $ 13,748,000 $ 39,427,484 $ 21,868,227 $ 17,559,257

Total expenditures 13,748,000 39,427,484 21,868,227 17,559,257

Excess (deficiency) ofrevenues over expenditures (3,381,063) (29,060,547) (7,481,697) 21,578,850

Other Financing Sources (Uses):Sale of property 3,300,770 3,300,770 (3,300,770)Transfers in 2,800,000 2,800,000Appropriations of prioryear reserves 80,293 22,959,777 (22,959,777)

Total other financing sources 3,381,063 29,060,547 2,800,000 (26,260,547)

Net change in fund balance $ $ $ (4,681,697) $ (4,681,697)

Budgeted Amounts



Schedule of Revenues, Expenditures and Changes inFund Balance Budget and Actual General Capital Projects Fund

67


Revenues:Impact fees $ $ 34,000 $ 34,000 $Investment income 408 408

Total revenues $ $ 34,000 $ 34,408 $ 408

Expenditures:Culture and human services $ $ 34,000 $ 475 $ 33,525

Total expenditures 34,000 475 33,525

Excess (deficiency) ofrevenues over expenditures 33,933 33,933


City of Sunny Isles Beach, FloridaSchedule of Revenues, Expenditures and Changes inFund Balance Budget and Actual Public Art Trust FundFor the Year Ended September 30, 2015

Budgeted Amounts

STATISTICAL SECTION

City of Sunny Isles Beach, FloridaStatistical SectionSeptember 30, 2015

This part of the City of Sunny Isles Beach, Florida’s comprehensive annual financial report presentsdetailed information as a context for understanding what the information in the financial statements,note disclosures and required supplementary information says about the government’s overallfinancial health.

Contents

Financial Trends: These schedules contain trend information to help the reader understand how the City’sfinancial performance and well being have changed over time.

Net Position by ComponentChanges in Net PositionFund Balances of Governmental FundsChanges in Fund Balances of Governmental FundsGeneral Governmental Tax Revenues by Source

Revenue Capacity: These schedules contain information to help the reader assess the government’s mostsignificant local revenue source, the property tax.

Assessed Value and Estimated Actual Value of Taxable PropertyProperty Tax RatesPrincipal Property TaxpayersProperty Tax Levies and Collections

Debt Capacity: These schedules present information to help the reader assess the affordability of thegovernment’s current levels of outstanding debt and the government’s ability to issue additional debt inthe future.

Ratios of Outstanding Debt by TypeDirect and Overlapping Governmental Activities DebtLegal Debt Margin InformationPledged Revenue Coverage

Demographic and Economic Information: These schedules offer demographic and economic indicators tohelp the reader understand the environment within which the government’s financial activities take place.

Demographic and Economic StatisticsPrincipal Employers

Operating Information: These schedules contain service and infrastructure data to help the readerunderstand how the information in the government’s financial report related to the services thegovernment provides and the activities it performs.

Full Time Equivalent City Government Employees by FunctionOperating Indicators by FunctionCapital Asset Statistics by Function

68

Table1

2006

2007

2008

2009

2010

2011

2012

2013

2014

(2)

2015

Gov

ernm

entalactivities:

Netinvestm

entincapitalassets

$35

,443

$45,632

$61,919

$77

,631

$10

5,76

1$

109,30

8$

107,250

$11

3,902

$12

2,08

3$

145,18

2Re

stricted

27,344

25,981

19,131

25,830

5,87

45,507

7,916

10,930

11,126

11,709

Unrestricted

11,132

17,078

18,074

14,960

10,992

16,179

25,734

38,028

28,634

26,418

Totalgovernm

ental

activities,net

position

$73

,919

$88,691

$99,124

$118,42

1$

122,62

7$

130,99

4$

140,900

$16

2,860

$16

1,84

3$

183,30

9

Busin

esstype

activ

ities:

Netinvestm

entincapitalassets

$1,01

7$

1,50

5$

3,14

6$

12,583

$12

,264

$12

,471

$12

,441

$12

,480

$12

,536

$12,845

Restricted

13Unrestricted(deficit)

2,62

72,97

12,94

2(2,209

)51

325

623

805

992

1,22

9

Totalbusinesstype

activities,net

position

$3,64

4$

4,47

6$

6,08

8$

10,374

$12

,328

$12

,796

$13

,064

$13

,285

$13

,528

$14,074

Prim

arygo

vernmen

t:Ne

tinvestm

entincapitalassets

$36

,460

$47,136

$65,066

$90

,214

$11

8,02

5$

121,77

9$

119,691

$12

6,382

$13

4,61

9$

158,02

7Re

stricted

27,344

25,981

19,131

25,830

5,88

75,507

7,916

10,930

11,126

11,709

Unrestricted

13,759

20,049

21,016

12,751

11,043

16,504

26,357

38,833

29,626

27,647

Totalprim

ary

government,ne

tposition

$77

,563

$93,166

$105,21

3$

128,79

5$

134,95

5$

143,79

0$

153,964

$17

6,145

$17

5,37

1$

197,38

3(1)

(1)

Theincrease

inthetotalprim

arygovernmen

t'sne

tposition

infiscalyear2

015isexplaine

dinManagem

ent's

Discussio

nandAn

alysis.

(2)

Fiscalyear

2014

unrestrictedne

tassetsh

avebe

enrestated

dueto

implem

entatio

nof

GASB

68.

City

ofSunn

yIslesB

each,Florid

a

(Amou

ntsE

xpressed

inTh

ousand

s)

Net

Positio

nby

Compo

nent

LastTenFiscalYe

ars

(AccrualBa

siso

fAccou

nting)

69

Table2

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Expe

nses:

Governmen

talactivitie

s:Ge

neralgovernm

ent

$5,290

$5,91

8$

5,24

0$

6,81

0$

5,67

4$

4,98

6$

6,279

$7,595

$7,84

5$

8,30

4Pu

blicsafety

8,734

8,42

58,78

39,13

99,63

59,29

110

,764

10,386

11,023

11,412

Physica

lEnviro

nmen

t12

,372

5,18

03,32

23,84

73,91

13,92

33,906

5,402

3,67

14,550

Cultu

reandhu

man

service

s2,048

2,09

82,89

92,99

22,11

92,58

73,242

4,412

4,13

54,776

Transportatio

n41

358

457

61,139

1,447

1,55

11,512

Intereston

long

term

debt

1,133

1,23

71,18

61,39

82,30

92,48

32,471

1,647

1,54

91,446

Totalgovernm

ental

activities

expe

nses

$29

,577

$22

,858

$21,430

$24,599

$24

,232

$23

,846

$27

,801

$30

,889

$29,774

$32,000

Busin

esstype

activ

ities:

Stormwater

Managem

ent

$373

$30

7$

298

$32

5$

382

$59

9$

788

$820

$72

9$

884

Totalbusinesstype

activities

expe

nses

373

307

298

325

382

599

788

820

729

884

Totalprim

ary

governmen

texpenses

$29

,950

$23

,165

$21,728

$24,924

$24

,614

$24

,445

$28

,589

$31

,709

$30,503

$32,884

Program

Revenu

es:

Governmen

talactivitie

s:Ch

argesfor

service

s:Ge

neralgovernm

ent

$$

371

$58

$46

$1,75

0$

1,71

4$

2,454

$2,927

$6,62

2$

7,49

0Pu

blicSafety

3,798

4,36

33,46

63,29

82,48

12,84

72,485

3,868

778

1,137

Physica

lenviro

nmen

t24

2722

30Cu

lture

andhu

man

service

s356

485

650

722

1,01

71,06

11,152

1,131

1,24

71,303

Operatingg

rantsa

ndcontrib

utions

1315

425

95,61

91,09

290

64,003

3,650

1,09

61,075

Capitalgrantsa

ndcontrib

utions

$28

,663

$8,59

4$

3,24

1$

1,60

2$

700

$76

4$

771

$1,458

$90

$39

7

Totalgovernm

entalactivitie

sprogram

revenu

es$

32,854

$13

,994

$7,69

6$

11,317

$7,04

0$

7,29

2$

10,865

$13

,034

$9,83

3$

11,402

City

ofSunn

yIsle

sBeach,Florid

a

(Amou

ntsE

xpressed

inTh

ousand

s)

Chan

gesinNe

tPosition

LastTenFiscalYe

ars

(AccrualBa

sisof

Accoun

ting)

70

Table2

Chan

gesinNe

tPosition

(con

tinue

d)

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Busin

esstype

activ

ities:

Chargesfor

service

s:Stormwater

$545

$55

2$

825

$1,04

0$

970

$97

3$

966

$982

$97

6$

997

Operatinggrantsandcontrib

utions

200

7679

8281

8486

Capitalgrantsa

ndcontrib

utions

898

3,30

72

321

Totalbusinesstype

activities

program

revenu

es745

552

1,72

34,34

71,04

61,05

21,048

1,065

1,06

01,404

Totalprim

aryg

overnm

ent

program

revenu

es$

33,598

$14

,546

$9,41

9$

15,664

$8,08

6$

8,34

4$

11,913

$14

,099

$10,893

$12,806

Net(expe

nse)/reven

ueGo

vernmen

talactivitie

s$

3,277

$(8,864)

$(13,73

4)$

(13,28

2)$

(17,19

2)$

(16,55

4)$

(16,936)

$(17,855)

$(19,94

1)$

(20,59

8)Bu

sinesstype

activities

371

245

1,42

54,02

266

445

3260

245

331

520

Totalprim

aryg

overnm

ent

nete

xpenses

$3,648

$(8,619)

$(12,30

9)$

(9,260

)$

(16,52

8)$

(16,10

1)$

(16,676)

$(17,610)

$(19,61

0)$

(20,07

8)

Gene

ralR

even

uesa

ndOt

her

Chan

gesinNe

tPosition

Governmen

talactivities:

Taxes:

Prop

ertytaxes

$11

,130

$13

,533

$14,358

$15,022

$15

,085

$15

,315

$15

,960

$16

,364

$17,906

$19,186

Utilitytaxes

2,671

2,87

93,40

13,69

03,87

94,03

23,970

4,195

4,38

14,376

Franchise

taxes

1,325

1,76

31,87

51,93

72,03

41,51

71,685

1,569

1,28

51,340

Impactfees

1,46

81,49

92,306

16,432

2,62

312,826

Intergovernm

ental

2,298

2,25

72,29

82,16

01,57

11,746

1,893

2,03

12,162

Investmentincom

e(lo

ss)

1,967

1,96

31,59

792

932

261

3480

(766

)1,55

91,564

Misc

ellaneou

s478

895

638

2,18

572

420

0616

432

404

606

Gain(lo

ss)o

ndisposalof

capitalassets

(840

)(1,401)

3166

4Transfers

(1,275

)

Totalgovernm

entalactivitie

s$

19,869

$23

,290

$24,167

$25,923

$21

,397

$24

,747

$25

,362

$40

,150

$30,255

$42,064

City

ofSunn

yIsles

Beach,

Florida

(Amou

ntsE

xpressed

inTh

ousand

s)

LastTenFiscalYe

ars

(AccrualBa

sisof

Accoun

ting)

71

Table2

Chan

gesinNet

Position

(con

tinue

d)

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Busin

esstype

activ

ities:

Intergovernm

ental

$75

$14

7$

77$

$$

$$

$$

Investmentincom

e(lo

ss)

7611

411

171

1614

8(19)

2526

Misc

ellaneou

s8

Transfers

1,27

5

Totalbusinesstype

activities

151

261

188

711,29

114

8(11)

2526

Totalprim

arygovernmen

t$

20,020

$23

,551

$24,355

$25,994

$22

,688

$24

,761

$25

,370

$40

,139

$30,280

$42,090

Chan

geinNet

Position

Governmen

talactivities

$23

,146

$14

,425

$10,433

$12,642

$4,20

5$

8,19

3$

8,426

$22

,295

$10,314

$21,466

Busin

esstype

activities

522

506

1,61

34,09

31,95

546

7268

234

356

546

Totalprim

arygovernmen

t$

23,668

$14

,931

$$

12,046

$16,735

$6,16

0$

8,66

0$

8,694

$22

,529

$10,670

$22,012

(1)

(1)

Theincrease

inthetotalprim

arygovernmen

t'schangesinne

tposition

infiscalyear2

015isexplaine

dinManagem

ent's

Discussio

nandAn

alysis.

City

ofSunn

yIslesB

each,Florid

a

(AccrualBa

sisof

Accoun

ting)

(Amou

ntsE

xpressed

inTh

ousand

s)

LastTenFiscalYe

ars

72

Table3

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Gen

eralFund

Committed

to:

Hurricane/Em

ergencyand

Disaster

Recovery

$$

$5,20

7$

5,20

7$

10,000

$10

,000

$10,000

$10,000

$10

,000

$10

,000

Other

postem

ploymen

tbenefits

152

Assig

nedto:

Subseq

uent

year'sbu

dget

527

56433

1,071

1,02

5No

nspendable

Inventory

4Prep

aids

9997

5710

301

338

2437

Unassig

ned

11,212

17,206

13,116

11,634

1,95

03,152

2,97

34,96

59,18

212

,066

TotalG

eneralFund

$11

,316

$17,330

$18,379

$16

,993

$12

,440

$14

,237

$14,299

$15,303

$19

,206

$22

,103

Allother

governmen

talfun

dsRe

strictedfor:

Lawen

forcem

ent

$968

$78

9$

819

$6,22

7$

5,75

0$

5,507

$7,91

6$

9,90

5$

9,24

2$

8,43

5AtlanticIslesimprovem

ents

13

Capitalimprovem

ents

7,41

59,08

9Bu

ilding

241

642

865

2,31

1Pu

blicart

34Transportatio

n20

337

592

9Assig

nedto:

Subseq

uent

year'sbu

dget

772

192,038

149

13,947

724

Capitalprojects

26,299

25,190

18,292

17,565

15,223

12,140

10,738

6,31

022

,992

18,391

Nonspendable:

Inventory

24

34

Prep

aids

326

Long

term

receivables

1,40

02,85

985

985

9

Totalallother

governmentalfun

ds$

27,344

$25,981

$19,130

$25

,830

$21

,123

$17

,976

$27,915

$42,756

$35

,060

$30

,963

City

ofSunn

yIslesB

each,Florid

a

(Amou

ntsE

xpressed

inTh

ousand

s)

Fund

Balances

ofGovernm

entalFun

dsLastTenFiscalYe

ars

(Mod

ified

Accrua

lBasisof

Accoun

ting)

73

Table4

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Revenu

esRe

alandperson

alprop

ertytaxes

$11

,130

$13

,533

$14

,358

$15

,022

$15

,085

$15

,315

$15

,960

$16

,364

$17

,907

$19,186

Utility

taxes

2,67

12,87

83,40

13,69

03,879

4,032

3,970

4,194

4,381

4,30

3Franchise

fees

1,32

61,76

31,87

51,93

72,034

1,517

1,685

1,569

1,285

1,34

0Im

pactfees

28,663

8,59

41,00

017

846

1,499

1,306

16,073

3,123

12,826

Intergovernm

entalreven

ues

2,29

82,73

52,34

93,59

12,332

3,224

2,664

2,862

3,128

3,61

2Lic

ensesa

ndpe

rmits

3,28

73,76

42,68

22,69

82,252

2,673

2,227

3,676

4,012

4,60

0Ch

argesfor

services

585

491

1,13

996

42,129

2,354

3,413

3,514

3,899

4,03

4Fine

sand

forfeitures

318

580

584

6,04

5689

472

3,504

3,072

415

575

Investmentincom

e(lo

ss)

1,96

71,96

31,59

792

9322

613

471

(899

)1,420

1,72

5Misc

ellaneou

srevenue

s47

898

32,87

92,18

6639

900

600

2,157

815

1,33

7

Totalrevenue

s52

,723

37,284

31,864

37,240

29,407

32,599

35,800

52,582

40,385

53,538

Expe

nditu

res

Gene

ralgovernm

ent

4,15

54,85

84,45

15,25

05,515

4,640

4,349

6,821

7,448

7,96

8Pu

blicsafety

8,24

78,19

88,47

38,90

29,307

9,002

10,141

9,682

10,264

10,908

Physicalenvironm

ent

3,65

72,838

2,999

2,668

1,917

1,726

1,71

7Cu

lture

andhu

man

services

4,15

35,13

35,98

12,98

11,875

2,257

2,700

3,833

4,023

4,52

9Transportatio

n0

413

539

565

1,110

1,432

1,538

1,52

2Capitaloutlay

33,495

12,301

16,629

31,084

27,218

8,261

7,196

9,258

14,517

23,422

Debt

service

Principal

865

900

930

965

2,967

3,675

2,614

2,131

3,121

3,22

3Interestandfiscalcharges

1,27

41,24

21,20

21,14

52,118

2,704

2,009

1,726

1,636

1,53

5Issuance

costs

1521

40

Totalexpenditures

52,189

32,632

37,666

54,397

52,392

34,124

32,827

36,800

44,273

54,824

Excess(deficiency)

ofrevenu

esover

expe

nditu

res

534

4,65

2(5,802)

(17,15

7)(22,985)

(1,525)

2,973

15,782

(3,888

)(1,286

)

(Amou

ntsE

xpressed

inTh

ousand

s)

City

ofSunn

yIslesB

each,Florid

aCh

angesinFund

Balances

ofGovernm

entalFun

dsLastTenFiscalYe

ars

(Mod

ified

Accrua

lBasisof

Accoun

ting)

74

Table4

Chan

gesinFund

Balances

ofGovernm

entalFun

ds(1)

(con

tinue

d)

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Other

finan

cing

sources(uses)

Noteandbo

ndproceeds

22,700

15,000

2,425

Refund

ingbo

ndsissued

17,575

Saleof

prop

erty

6,881

3166

4Insurancerecoverie

s51

3230

81Paym

enttorefund

edbo

ndescrow

agen

t(19,905)

Transfersin

6,65

62,21

07,13

27,13

314

,287

2,566

2,486

6,046

3,894

3,68

1Transferso

ut(6,656

)(2,210

)(7,132)

(7,133)

(15,562)

(2,566)

(2,486

)(6,046

)(3,894

)(3,681

)

Totalother

financing

sources(uses)

22,700

13,725

7,027

6396

85Net

change

infund

balance

$53

4$

4,65

2$

(5,802)

$5,54

3$

(9,260)

$(1,525)

$10

,000

$15

,845

$(3,792)

$(1,201

)

Debt

service

asapercen

tage

ofno

ncapita

lexpenditures

11.4%

10.5%

10.1%

9.1%

20.2%

24.7%

18.0%

13.0%

15.9%

15.1%

(Amou

ntsE

xpressed

inTh

ousand

s)

LastTenFiscalYe

ars

(Mod

ified

Accrua

lBasisof

Accoun

ting)

City

ofSunn

yIslesB

each,Florid

a

75

Table 5

Fiscal Year LocalEnded Property Option Utility Franchise

September 30, Taxes Gas Tax Taxes Fees Total

2006 $ 11,130 $ 201 $ 2,671 $ 1,326 $ 15,3282007 13,533 194 2,879 1,763 18,3692008 14,358 199 3,401 1,875 19,8332009 15,022 192 3,690 1,937 20,8412010 15,085 191 3,879 2,034 21,1892011 15,315 214 4,032 1,517 21,0782012 15,960 212 3,970 1,685 21,8272013 16,364 209 4,194 1,569 22,3362014 17,907 214 4,381 1,285 23,7872015 19,186 222 4,303 1,340 25,051

(Amounts Expressed in Thousands)

General Governmental Tax Revenues by SourceLast Ten Fiscal Years(Modified Accrual Basis of Accounting)


76

City

ofSunn

yIslesB

each,Florid

aTable6

Assessed

Valuean

dEstim

ated

ActualVa

lueof

TaxableProp

erty

LastTenFiscalYe

ars

Taxable

Total

Valueas

aFiscalYe

arTo

talTaxab

leDirect

Percen

tage

o fEn

ded

Real

Person

alAs

sessmen

tAs

sessed

Less:

Assessed

Tax

Estim

ated

Septem

ber3

0,Prop

erty

Prop

erty

Total

Redu

ctions

Valuation

TaxExem

ption

Value

Rate

ActualVa

lue

2006

$4,37

6,32

9,64

7$

44,809

,075

$4,42

1,138,72

2$

396,901,13

3$

4,02

4,23

7,58

9$

161,79

7,502

$3,862,44

0,087

2.9500

87.363

%

2007

5,54

6,61

0,27

753

,476

,001

5,60

0,086,27

863

5,721,37

14,96

4,36

4,90

7199,07

3,227

4,765,29

1,680

2.9500

85.093

%

2008

7,06

2,65

9,74

862

,210

,108

7,12

4,869,85

676

3,101,26

16,36

1,76

8,59

5240,34

2,890

6,121,42

5,705

2.3979

85.916

%

2009

6,92

3,51

9,94

965

,594

,322

6,98

9,114,27

152

4,055,35

06,46

5,05

8,92

1372,28

2,381

6,092,77

6,540

2.4842

87.175

%

2010

6,65

7,81

7,02

464

,000

,042

6,72

1,817,06

625

1,726,16

86,47

0,09

0,89

8348,01

2,109

6,122,07

8,789

2.6500

91.078

%

2011

6,03

3,80

6,76

362

,214

,318

6,09

6,021,08

113

7,330,74

85,95

8,69

0,33

3330,52

7,440

5,628,16

2,893

2.8860

92.325

%

2012

6,36

8,23

6,45

062

,352

,223

6,43

0,588,67

328

4,719,58

16,14

5,86

9,09

2318,63

2,033

5,827,23

7,059

2.8860

90.617

%

2013

6,94

0,26

1,94

377

,274

,810

7,01

7,536,75

348

8,221,29

66,52

9,31

5,45

7325,16

6,929

6,204,14

8,528

2.8000

88.409

%

2014

8,32

2,02

6,70

579

,320

,111

8,40

1,346,81

61,17

3,050,57

07,22

8,29

6,24

6330,23

1,037

6,898,06

5,209

2.7000

82.107

%

2015

9,945,175,461

73,814,320

10,018,989,781

1,956,569,243

8,062,420,538

339,179,322

7,723,241,216

2.6000

77.086

%

Note:

Prop

ertyintheCity

isreassessed

each

year.Prop

ertyisassessed

atactualvalue;therefore,thevalues

areeq

ualtoactual

values.Taxratesa

repe

r$1,00

0of

assessed

value.

Source:

MiamiD

adeCo

unty

Prop

ertyAp

praiser's

Office.

Estim

ated

ActualVa

lue

77

Tax Debt Total Debt Total Debt TotalFiscal Roll Operating Service City Operating Service County Operating Service SchoolYear Year Millage Millage Millage Millage Millage Millage Millage Millage Millage

2006 2005 2.9500 2.9500 5.8350 0.2850 6.1200 7.9470 0.4910 8.43802007 2006 2.9500 2.9500 5.6150 0.2850 5.9000 7.6910 0.4140 8.10502008 2007 2.3979 2.3979 4.5796 0.2850 4.8646 7.5700 0.3780 7.94802009 2008 2.4842 2.4842 4.8379 0.2850 5.1229 7.5330 0.2640 7.79702010 2009 2.6500 2.6500 4.8379 0.2850 5.1229 7.6980 0.2970 7.99502011 2010 2.8860 2.8860 5.4275 0.4450 5.8725 7.8640 0.3850 8.24902012 2011 2.8860 2.8860 4.8050 0.2850 5.0900 7.7650 0.2400 8.00502013 2012 2.8000 2.8000 4.7035 0.2850 4.9885 7.7650 0.2330 7.99802014 2013 2.7000 2.7000 4.7035 0.4220 5.1255 7.6440 0.3330 7.97702015 2014 2.6000 2.6000 4.6669 0.4500 5.1169 7.7750 0.1990 7.9740

Source: Miami Dade County Property Appraiser's Office.

City of Sunny Isles Beach Miami Dade County School District

City of Sunny Isles Beach, FloridaProperty Tax RatesDirect and Overlapping GovernmentsLast Ten Fiscal Years

78

Table 7

Overlapping Rates

SouthFlorida Florida TotalWater Inland Total Total Direct and

Everglades Management Navigation Okeechobee State Children's Fire and Fire District's OverlappingProject District District Basin Millage Trust Rescue Debt Library Millage Rates

0.1000 0.5970 0.0385 0.0385 0.7740 0.4288 2.6090 0.0520 0.4860 3.5758 21.85780.1000 0.5970 0.0385 0.0385 0.7740 0.4223 2.6090 0.0420 0.4860 3.5593 21.28830.0894 0.5346 0.0345 0.0345 0.6930 0.4223 2.2067 0.0420 0.3842 3.0552 18.95870.0894 0.5346 0.0345 0.0345 0.6930 0.4212 2.1851 0.0420 0.3822 3.0305 19.12760.0894 0.5346 0.0345 0.0345 0.6930 0.5000 2.1851 0.0420 0.3822 3.1093 19.57020.0894 0.5346 0.0345 0.0345 0.6930 0.5000 2.5753 0.0200 0.2840 3.3793 21.07980.0624 0.3739 0.0345 0.0345 0.5053 0.5000 2.4496 0.0131 0.1795 3.1422 19.62850.0613 0.3676 0.0345 0.0345 0.4979 0.5000 2.4496 0.0131 0.1725 3.1352 19.41960.0587 0.3523 0.0345 0.0345 0.4800 0.5000 2.4496 0.0127 0.1725 3.1348 19.41730.0548 0.1577 0.0345 0.0345 0.2815 0.5000 2.4207 0.0114 0.2840 3.2161 19.1885

Special DistrictsState

79

Table8

Percen

tage

ofPe

rcen

tage

ofTaxable

TotalTaxab

leTaxable

TotalTaxab

leAssessed

Assessed

Assessed

Assessed

Taxpayer

Value

Rank

Value

Value

Rank

Value

IntercoastalYachtC

lubLLC

82,000

11.1%

Sunn

yIslesB

each

Associates

LLC

65,316

20.9%

RDRSeasho

reLLCET

AL57

,106

30.7%

BeachClub

Acqu

isitio

nLLC

35,817

40.5%

WestgateMiamiBeach

Ltd

30,996

50.4%

CenturyTowersA

ssociatio

n30

,250

60.4%

GilcoRe

alty

LC&M&RLLC

24,193

70.3%

LPLA

Partne

rsLP

24,121

80.3%

DezerH

otelManagem

entLtd

22,761

90.3%

Gables

InvestorsInc

16,329

100.2%

Totals

$38

8,88

95.0%

$0.0%

Source:M

iamiD

adeCo

unty,Tax

Collector'sOffice.

(1)Informationforfisc

alyear

ending

Septem

ber3

0,20

06isno

tavailable,as

itwas

nota

requ

ired

disclosure

atthat

time.

City

ofSunn

yIslesB

each, Florid

a

2015

2006

(1)

Principa

lPrope

rtyTaxpayers

Curren

tYeara

ndTenYe

arsA

go(Amou

ntsE

xpressed

inTh

ousand

s)

80

Table 9

Percentageof Total

Current Delinquent TaxTaxes Tax Collections

Fiscal Total Tax Collections Percentage Collections Total Tax to TaxYear Levy (1) (2) Collected (2) Collections Levy

2006 $ 11,394,198 $ 11,023,320 96.75% $ 106,347 $ 11,129,667 97.68%2007 14,057,610 13,393,251 95.27% 133,894 13,527,145 96.23%2008 14,678,567 14,038,748 95.64% 167,587 14,206,335 96.78%2009 15,135,675 14,651,396 96.80% 39,254 14,690,650 97.06%2010 16,223,509 14,870,128 91.66% 292,103 15,162,231 93.46%2011 16,242,878 14,813,865 91.20% 143,680 14,957,545 92.09%2012 16,817,406 16,060,172 95.50% 16,060,172 95.50%2013 17,105,356 16,037,995 93.76% 342,263 16,380,258 95.76%2014 18,188,192 17,190,326 94.51% 732,192 17,922,518 98.54%2015 19,655,961 18,711,722 95.20% 503,417 19,215,139 97.76%

Source: Miami Dade County, Tax Collector's Office and the City of Sunny Isles Beach.(1) Tax levy, net of discount(2) Includes estimated values for 2005.


Last Ten Fiscal YearsProperty Tax Levies and Collections

81

Table10

Gen

eral

Total

Percen

tage

Fiscal

Obligation

Revenu

eProm

issory

Capital

Outstan

ding

Notes

Prim

ary

ofPe

rson

alPe

rYear

Bond

sBo

nds

Note

Leases

Bond

sPa

yable

Governmen

tIncome

Capita

(1)

2006

$$

25,055

$$

$2,36

3$

$27

,418

4.67

%$

1,513

2007

24,155

2,213

26,368

3.97

%1,407

2008

23,225

2,063

25,288

3.44

%1,257

2009

22,260

22,700

1,913

46,873

6.42

%2,399

2010

36,255

20,738

5,300

62,293

8.88

%3,138

2011

34,621

18,697

4,973

58,291

7.53

%2,775

2012

33,639

17,980

4,642

56,261

6.95

%2,630

2013

32,258

17,230

4,229

53,717

6.48

%2,518

2014

29,917

16,450

3,817

50,184

5.81

%2,310

2015

27,508

15,637

3,398

46,543

5.06%

2,121

Note:

Details

regardingtheCity'sou

tstand

ingde

btcanbe

foun

dintheno

testothefin

ancialstatem

ents.

(1)

SeetheSche

duleof

Demograph

icandEcon

omicStatisticsfor

person

alincomeandpo

pulatio

ndata.

Activ

ities

Gov

ernm

entalA

ctivities

City

ofSunn

yIslesB

each,Florid

aRa

tioso

fOutstan

ding

Debt

byType

LastTenFiscalYe

ars

(Amou

ntse

xpressed

inthou

sand

s,except

percap

itaam

ount)

Busine

ssType

82

Table 11

AmountPercentage ApplicableApplicable to to City of

Net Debt City of Sunny SunnyOutstanding Isles Beach (1) Isles Beach

Debt repaid with property taxes:Miami Dade County $ 1,384,231 3.82% $ 52,878Miami Dade School District Board 3,290,939 3.82% 125,714

Subtotal, overlapping debt 178,591

City of Sunny Isles Beach 43,145

Total direct and overlapping debt $ 221,736

Source: Miami Dade County, Florida, Accounting Division and the School Boardof Miami Dade County.

(1) Based on ratio of assessed taxable value.


Jurisdiction

Direct and Overlapping Governmental Activities DebtAs of September 30, 2015(Amounts Expressed in Thousands)

83

City of Sunny Isles Beach, Florida Table 12Legal Debt Margin InformationSeptember 30, 2015

The City Charter allows revenue bonds to be issued when authorized by the City Commission. The CityCharter and Florida Statute provide no limit on the amount of the general obligation debt attainable.

84

Table 13

Fiscal TotalYear Revenue Principal Interest Coverage

2006 $ 3,102 $ 865 $ 1,274 1.452007 8,962 900 1,242 4.182008 9,670 930 1,202 4.542009 9,492 965 1,230 4.322010 14,172 2,967 2,096 2.802011 17,096 3,675 2,705 2.682012 1,353 114 11.872013 1,441 564 235 1.802014 1,528 576 221 1.922015 1,596 590 207 2.00

Note: Details regarding the City's outstanding debt can be found in the notesto the financial statements.

Debt Service


(Amounts Expressed in Thousands)Last Ten Fiscal YearsPledged Revenue Coverage

Revenue Bonds and Notes Payable

85

Table 14

PersonalIncome(amounts Per Capita School

Fiscal Population expressed) Income Median Enrollment UnemploymentYear (1) in thousands) (2) Age (3) (4) Rate (5)

2006 18,121 $ 587,646 $ 32,429 37 3.8%2007 18,747 663,813 35,409 37 3.6%2008 20,121 734,256 36,492 37 1,155 5.3%2009 19,540 729,741 37,346 37 1,492 10.1%2010 19,849 701,325 35,333 37 1,729 12.1%2011 21,007 774,024 36,846 37 1,797 10.0%2012 21,395 809,458 37,834 38 1,792 9.6%2013 21,331 828,923 38,860 38 1,868 7.7%2014 21,720 864,456 39,800 38 1,991 6.1%2015 21,946 919,164 41,883 39 1,894 5.6%

(1) Furnished by Bureau of Economic and Business Research, University of Florida.Population estimates as of April 1st of each year; 2015 estimate unavailable at Universityof Florida. 2015 figure obtained from U.S. Census Bureau's most recent published update.

(2) Represents per capita for Miami Dade County as provided by theU.S. Bureau of Economic Analysis.

(3) Represents median age for Miami Dade County as provided by theMiami Dade Beacon Council.

(4) Furnished by the School Board of Miami Dade County.(5) Furnished by the Bureau of Labor Statistics.

City of Sunny Isles Beach, FloridaDemographic and Economic StatisticsLast Ten Fiscal Years

86

Table15

Percen

tage

Percen

tage

ofTo

talCity

ofTo

talCity

Employees

Rank

Employmen

tEm

ployees

Rank

Employmen

t

Trum

pInternationalResort

352

114

.1%

New

portBe

achsideRe

sort

325

213

.0%

Acqu

alinaRe

sort&Spa

287

311

.5%

City

ofSunn

yIsles

Beach

267

410

.7%

Marco

Polo(AventuraBe

achAssoc.)

148

55.9%

Maren

asRe

sort(LeMeridien)

130

65.2%

Publix

114

74.6%

Doub

leTree

Ocean

PointR

esort

100

84.0%

Marshalls

849

3.4%

McD

onalds

5510

2.2%

Totals

1,86

274

.5%

0.0%

Source:C

ityof

Sunn

yIslesB

each,Cod

eCo

mpliance

(1)Inform

ationforfisc

alyear

ending

Septem

ber3

0,20

06isno

tavailable,as

itwas

nota

requ

ired

disclosure

atthat

time.

Employer

2015

2006

(1)

City

ofSunn

yIslesB

each,Florid

aPrincipa

lEmployers

Curren

tYeara

ndTenYe

arsA

go

87

Table16

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Gen

eralGov

ernm

ent:

Commission

55

66

66

66

65

City

Clerk

44

33

33

33

33

City

Attorney

55

55

44

44

44

Finance

44

43

35

76

66

Human

Resources

44

32

27

65

54

City

Manager

55

56

51

24

34

AdministrativeServices

1414

87

6-

Inform

ationTechno

logy

55

76

66

54

65

Building

2725

2119

1415

1317

1919

Pu

blicSafety:

Police:

SwornOfficers

5245

4748

4848

5451

5253

Non

SwornOfficers

Police

1611

1213

1313

1311

1112

Non

SwornOfficers

Ocean

Rescue

2424

2222

2522

2423

2831

Ph

ysicalEn

vironm

ent:

Commun

ityDe

velopm

ent

1517

1412

1111

1217

1110

Pu

blicWorks

1213

1720

1618

1413

1312

Stormwater

22

22

12

22

22

Tran

sportatio

n10

99

68

9

Cu

lturaland

Human

Services

3744

3126

3737

5139

3449

Total

231

227

207

200

210

207

225

211

211

228

Employeesa

sofS

eptembe

r30,

Functio

n

FullTimeEq

uivalent

City

Governmen

tEmployeesb

yFunctio

nLastTenFiscalYe

ars

City

ofSunn

yIslesB

each,Florid

a

88

Table17

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Police:

Physicalarrests

473

431

435

458

285

561

571

514

460

367

Parkingviolations

5,662

5,462

5,672

3,749

5,495

4,546

6,275

7,025

5,638

9,61

3

Highwaysa

ndstreets:

Street

resurfacing(m

iles)

3-

(1)

Potholes

repaire

d10

212

816

8

(1)

Cultu

rean

drecreatio

n:Athleticfie

ldpe

rmitissue

s2

21

769

41

Film

perm

itsissue

d4

1623

1714

1315

155

Summer

campen

rollm

ent

203

271

407

495

563

482

512

523

562

588

Source:

City

ofSunn

yIslesB

each,Florid

a.(1)Da

tapriortofiscalyeare

ndingSeptem

ber3

0,20

10isno

tavailable.

Ope

ratin

gIndicatorsby

Functio

nLastTenFiscalYe

ars

City

ofSunn

yIslesB

each,Florid

a

89

Table18

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Publicsafety:

Police:

Stations

11

11

11

11

11

Patrolun

its56

6057

5864

6467

6569

61

Motorcycles

44

44

45

55

56

Streets:

City

maintaine

d(m

iles)

7.2

7.2

7.2

7.2

7.2

7.2

(1)

FDOTmaintaine

d(m

iles)

3.8

3.8

3.8

3.8

3.8

3.8

(1)

Privatelymaintaine

d(m

iles)

1.0

1.0

1.0

1.0

1.0

1.0

(1)

Streetlights:

City

maintaine

d307

345

347

347

365

365

(1)

FPLmaintaine

d285

264

223

223

223

223

(1)

Cultu

rean

drecreatio

n:Parksa

creage

15.4

15.9

15.9

15.9

15.9

16.2

16.2

16.2

20.2

20.2

Parks

78

88

89

99

1010

Co

mmun

itycenters

11

11

11

11

Storm

DrainPipe

s:City

maintaine

d(m

iles)

0.00

0.00

0.00

0.00

6.03

6.03

6.50

6.50

6.75

6.75

FDOTmaintaine

d(m

iles)

7.85

7.89

7.86

7.86

7.86

7.86

(1)

Source:City

ofSunn

yIslesB

each,Florid

a.(1)Da

tapriortofiscalyeare

ndingSeptem

ber3

0,20

10isno

tavailable.

Functio

n

CapitalA

sset

Statisticsb

yFunctio

nCity

ofSunn

yIslesB

each,Florid

a

LastTenFiscalYe

ars

COMPLIANCE SECTION


90

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVERFINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERSBASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To The Honorable Mayor,City Commission and City ManagerCity of Sunny Isles Beach, Florida

We have audited, in accordance with the auditing standards generally accepted in the United States ofAmerica 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 governmentalactivities, the business type activities, each major fund, and the aggregate remaining fund informationof the City of Sunny Isles Beach, Florida (the “City”) as of and for the year ended September 30, 2015,and the related notes to the financial statements which collectively comprise the City’s basic financialstatements and have issued our report thereon dated May 4, 2016.

Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered the City's internalcontrol over financial reporting (internal control) to determine the audit procedures that areappropriate in the circumstances for the purpose of expressing our opinions on the financialstatements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internalcontrol. 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 allowmanagement or employees, in the normal course of performing their assigned functions, to prevent ordetect and correct misstatements on a timely basis. A material weakness is a deficiency, orcombination of deficiencies, in internal control, such that there is a reasonable possibility that amaterial misstatement of the entity’s financial statements will not be prevented, or detected andcorrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, ininternal control that is less severe than a material weakness, yet important enough to merit attentionby those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph ofthis section and was not designed to identify all deficiencies in internal control that might be materialweaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify anydeficiencies in internal control that we consider to be material weaknesses. However, materialweaknesses may exist that have not been identified.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the City’s financial statements are free ofmaterial misstatement, we performed tests of its compliance with certain provisions of laws,regulations, contracts and grant agreements, noncompliance with which could have a direct andmaterial effect on the determination of financial statement amounts. However, providing an opinionon compliance with those provisions was not an objective of our audit and, accordingly, we do notexpress such an opinion. The results of our tests disclosed no instances of noncompliance or othermatters that are required to be reported under Government Auditing Standards.

91


Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control andcompliance and the results of that testing, and not to provide an opinion on the effectiveness of theentity’s internal control or on compliance. This report is an integral part of an audit performed inaccordance with Government Auditing Standards in considering the entity’s internal control andcompliance. Accordingly, this communication is not suitable for any other purpose.

KEEFE McCULLOUGH



92

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJORFEDERAL PROGRAM AND STATE PROJECT AND ON INTERNAL CONTROLOVER COMPLIANCE REQUIRED BY OMB CIRCULAR A 133 AND CHAPTER

10.550, RULES OF THE FLORIDA AUDITOR GENERAL


Report on Compliance for Each Major Federal Program and State Project

We have audited City of Sunny Isles Beach, Florida’s (the City) compliance with the types of compliancerequirements described in the OMB Circular A 133 Compliance Supplement and the compliancerequirements described in the Department of Financial Services’ State Projects Compliance Supplementthat could have a direct and material effect on each of City’s major federal program and state projectsfor the year ended September 30, 2015. The City’s major federal program and state projects areidentified in the summary of auditor’s results section of the accompanying schedule of findings andquestioned costs.

Management’s Responsibility

Management is responsible for compliance with the requirements of laws, regulations, contracts, andgrants applicable to its federal program and state projects.


Our responsibility is to express an opinion on compliance for each of the City’s major federal programand state projects based on our audit of the types of compliance requirements referred to above. Weconducted our audit of compliance in accordance with auditing standards generally accepted in theUnited States of America; the standards applicable to financial audits contained in GovernmentAuditing 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 theFlorida Auditor General. Those standards, OMB Circular A 133, and Chapter 10.550, Rules of theFlorida Auditor General, require that we plan and perform the audit to obtain reasonable assuranceabout whether noncompliance with the types of compliance requirements referred to above thatcould have a direct and material effect on a major federal program and/or state project occurred. Anaudit includes examining, on a test basis, evidence about the City’s compliance with thoserequirements 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 majorfederal program and state project. However, our audit does not provide a legal determination of theCity’s compliance.

Opinion on Each Major Federal Program and State Project

In our opinion, the City complied, in all material respects, with the types of compliance requirementsreferred to above that could have a direct and material effect on each of its major federal program andstate projects for the year ended September 30, 2015.

93


Report on Internal Control Over Compliance

Management of the City is responsible for establishing and maintaining effective internal control overcompliance with the types of compliance requirements referred to above. In planning and performingour audit of compliance, we considered the City’s internal control over compliance with the types ofrequirements that could have a direct and material effect on each major federal program and stateproject to determine the auditing procedures that are appropriate in the circumstances for thepurpose of expressing an opinion on compliance for each major federal program and state project andto test and report on internal control over compliance in accordance with OMB Circular A 133 andChapter 10.550, Rules of the Florida Auditor General, but not for the purpose of expressing an opinionon the effectiveness of internal control over compliance. Accordingly, we do not express an opinion onthe 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 overcompliance does not allow management or employees, in the normal course of performing theirassigned functions, to prevent, or detect and correct, noncompliance with a type of compliancerequirement of a federal program and state project on a timely basis. A material weakness in internalcontrol over compliance is a deficiency, or combination of deficiencies, in internal control overcompliance, such that there is a reasonable possibility that material noncompliance with a type ofcompliance requirement of a federal program and state project will not be prevented, or detected andcorrected, 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 compliancerequirement of a federal program and state project that is less severe than a material weakness ininternal control over compliance, yet important enough to merit attention by those charged withgovernance.

Our consideration of internal control over compliance was for the limited purpose described in the firstparagraph of this section and was not designed to identify all deficiencies in internal control overcompliance that might be material weaknesses or significant deficiencies. We did not identify anydeficiencies 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 ourtesting of internal control over compliance and the results of that testing based on the requirements ofOMB Circular A 133 and Chapter 10.550, Rules of the Florida Auditor General. Accordingly, this reportis not suitable for any other purpose.

KEEFE McCULLOUGH



94

INDEPENDENT AUDITOR’S REPORT TO CITY MANAGEMENT


Report on the Financial Statements

We have audited the basic financial statements of City of Sunny Isles Beach, Florida (the "City"), as ofand for the year ended September 30, 2015, and have issued our report thereon dated May 4, 2016.


We conducted our audit in accordance with auditing standards generally accepted in the United Statesof America; the standards applicable to financial audits contained in Government Auditing Standardsissued by the Comptroller General of the United States; OMB Circular A 133, Audits of States, LocalGovernments and Non Profit Organizations; and Chapter 10.550, Rules of the Florida Auditor General.

Other Reports and Schedule

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting andCompliance and Other Matters Based on an Audit of the Financial Statements Performed inAccordance With Government Auditing Standards; Independent Auditor’s Report on Compliance forEach Major Federal Program and State Project and Report on Internal Control over Compliance;Schedule of Findings and Questioned Costs; and Independent Accountant’s Report on an examinationconducted in accordance with AICPA Professional Standards, Section 601, regarding compliancerequirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in thosereports and schedule, which are dated May 4, 2016, should be considered in conjunction with thismanagement letter.

Prior Audit Findings

Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or notcorrective actions have been taken to address findings and recommendations made in the precedingannual financial audit report. There were no recommendations made in the preceding annual financialreport.

Official Title and Legal Authority

Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legalauthority for the primary government and each component unit of the reporting entity be disclosed inthis management letter, unless disclosed in the notes to the basic financial statements. The City ofSunny Isles Beach was established by the Board of Miami Dade County Commissioners with theadoption of Ordinance 97 7. The City does not have any component units.

95


Financial Condition

Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, requires that we applyappropriate procedures and report the results of our determination as to whether or not the City hasmet one or more of the conditions described in Section 218.503(1), Florida Statutes, and identificationof the specific condition(s) met. In connection with our audit, we determined that the City did notmeet any of the conditions described in Section 218.503(1), Florida Statutes.

Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financialcondition assessment procedures. It is management’s responsibility to monitor the City’s financialcondition, and our financial condition assessment was based in part on representations made bymanagement and the review of financial information provided by same.

Annual Financial Report

Section 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, requires that we applyappropriate procedures and report the results of our determination as to whether the annual financialreport for the City for the fiscal year ended September 30, 2015, filed with the Florida Department ofFinancial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annualfinancial audit report for the fiscal year ended September 30, 2015. In connection with our audit, wedetermined that these two reports were in agreement.

Other Matters

Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letterany recommendations to improve financial management. In connection with our audit, we did nothave any such recommendations.

Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance withprovisions of contracts or grant agreements, or abuse, that have occurred, or are likely to haveoccurred, that have an effect on the financial statements that is less than material but which warrantsthe attention of those charged with governance. In connection with our audit, we did not have anysuch findings.

Purpose of the Letter

Our management letter is intended solely for the information and use of the Legislative AuditingCommittee, members of the Florida Senate and the Florida House of Representatives, the FloridaAuditor General, Federal and other granting agencies, the Commissioners and applicable management,and is not intended to be and should not be used by anyone other than these specified parties.

KEEFE McCULLOUGH



96

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCEWITH SECTION 218.415, FLORIDA STATUTES


We have examined City of Sunny Isles Beach, Florida’s (the “City”) compliance with the requirementsof Section 218.415, Florida Statutes, Local Government Investment Policies, during the year endedSeptember 30, 2015. 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.

Our examination was conducted in accordance with attestation standards established by the AmericanInstitute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidenceabout the City’s compliance with those requirements and performing such other procedures as weconsidered necessary in the circumstances. We believe that our examination provides a reasonablebasis for our opinion. Our examination does not provide a legal determination on the City’scompliance with specified requirements.

In our opinion, the City complied, in all material respects, with the aforementioned requirements forthe year ended September 30, 2015.

This report is intended solely for the information and use of management and the State of FloridaAuditor General and is not intended to be and should not be used by anyone other than these specifiedparties.

KEEFE McCULLOUGH


97CFDA

Num

ber

Contract/G

rant

Num

ber

Expe

nditu

res

Fede

ralA

gencyNam

e:DirectPrograms:

UnitedStates

Departmen

tofJustice

Fede

ralForfeitu

res

16.922

$1,00

2,31

7

Totalexpen

ditureso

fFed

eralaw

ards

$1,00

2,31

7

CSFA

Num

ber

Contract/G

rant

Num

ber

Expe

nditu

res

StateAg

ency

Nam

e:FloridaDe

partmen

tofE

nviro

nmen

talProtection

Passed

throughtheDivisio

nof

Water

Resource

Managem

ent:

StateRe

volvingFund

Managem

ent

Water

ProjectS

tate

Approp

riatio

n37

.039

LP13

140

$32

1,31

6

Stateof

Florida,De

partmen

tofState

Passed

throughtheDivisio

nof

Cultu

ralA

ffairs:

Cultu

ralFacilitie

sGrant

45.014

15.9.300

.601

396,96

2

Totalexpen

ditureso

fState

FinancialA

ssistance

$71

8,278

StateAg

ency

Pass

throughEn

tity

StateProgram

City

ofSunn

yIslesB

each,Florid

aSche

duleof

Expe

nditu

reso

fFed

eralAw

ards

andStateFina

ncialA

ssistance

Forthe

Year

Ende

dSeptem

ber3

0,20

15

Fede

ralProgram

Pass

throughEn

tity

Fede

ralA

gency

98

City of Sunny Isles Beach, FloridaNotes to Schedule of Expenditures of Federal Awards and State Financial AssistanceFiscal Year Ended September 30, 2015

Note 1 Basis of Presentation

The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistanceincludes the Federal and state grant activity of the City. The information in this schedule ispresented in accordance with the requirements of OMB Circular A 133, Audits of States, LocalGovernments and Non Profit Organizations and Chapter 10.550, Rules of the Florida AuditorGeneral. Therefore, some amounts presented in this schedule may differ from amounts presentedin or used in the preparation of the basic financial statements.

Note 2 Contingency

The grant revenue amounts received are subject to audit and adjustment. If any expenditures orexpenses are disallowed by the grantor agencies as a result of such an audit, any claim forreimbursement to the grantor agencies would become a liability of the City. In the opinion ofmanagement, all grant expenditures are in compliance with the terms of the grant agreements andapplicable federal and state laws and regulations.

99

City of Sunny Isles Beach, FloridaSchedule of Findings and Questioned CostsSeptember 30, 2015

A. SUMMARY OF AUDITOR’S RESULTS

1. The auditor’s report expresses an unmodified opinion on the basic financial statements.

2. No material weaknesses relating to the audit of the basic financial statements are reportedin the Independent Auditor’s Report on Internal Control over Financial Reporting and onCompliance and Other Matters Based on an Audit of Financial Statements Performed inAccordance with Government Auditing Standards.

3. No instances of noncompliance material to the basic financial statements of City of SunnyIsles Beach, Florida, were disclosed during the audit.

4. No material weaknesses relating to the audit of the major federal program and stateprojects are reported in the Independent Auditor’s Report on Compliance for Each MajorFederal Program and State Project and on Internal Control over Compliance Required byOMB Circular A 133 and Chapter 10.550, Rules of the Florida Auditor General.

5. The independent auditor’s report on compliance for the major federal program and stateprojects for City of Sunny Isles Beach, Florida expresses an unmodified opinion.

6. No audit findings relative to the major federal program and state projects for City of SunnyIsles Beach, Florida are reported in Part C of this schedule.

7. The program/projects tested as major program/projects are as follows:

Federal Program: CFDA Number

United States Department of JusticeFederal Forfeiture 16.922

State Projects: CSFA Number

Florida Department of Environmental ProtectionState Revolving Fund ManagementWater Project State Appropriation 37.039

Florida Department of StateCultural Facilities Grant 45.014

8. The threshold for distinguishing Types A and B programs was $ 300,000 for the majorfederal program. The threshold for distinguishing Type A and Type B for state projects was$ 215,483.

9. City of Sunny Isles Beach, Florida was determined to be a low risk auditee pursuant to OMBCircular A 133.

B. FINDINGS FINANCIAL STATEMENT AUDIT

NONE

100

City of Sunny Isles Beach, FloridaSchedule of Findings and Questioned CostsSeptember 30, 2015

C. FINDINGS AND QUESTIONED COSTS MAJOR FEDERAL PROGRAM ANDMAJOR STATE PROJECTS

NONE

D. OTHER ISSUES

No Summary Schedule of Prior Audit Findings is required because there were no prior auditfindings related to federal programs and/or state projects.

No Corrective Action Plan is required because there were no findings reported under the OMBCircular A 133 or the Florida Single Audit Act.

Documents

Of the For The 30, 2015 - FLAuditor.gov rpts/2015 sunny... · 2019-11-03 · Balance r Budget and Actual r General Capital Projects Fund 66 Schedule of Revenues, Expenditures and