HomeMy WebLinkAboutOrdinance 2024-611ORDINANCE NO. 2024 -�
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES
BEACH, FLORIDA, AMENDING ORDINANCE NO. 2023-606; APPROVING BUDGET
AMENDMENT NO. BA2324-02 TO THE CITY'S OPERATING AND CAPITAL
IMPROVEMENT BUDGET FOR THE 2023-2024 FISCAL YEAR - GENERAL FUND,
AND CAPITAL PROJECTS FUND; AUTHORIZING THE CITY MANAGER TO DO ALL
THINGS NECESSARY TO IMPLEMENT THE TERMS AND CONDITIONS OF THIS
ORDINANCE; PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, in accordance with Sections 200.065 and 166.241, Florida Statutes, and the
City Charter, the City Commission adopted the budget for Fiscal Year 2023-2024 ("Budget") by
Ordinance No. 2023-606; and
WHEREAS', the City's Finance Director has determined a need to amend the Budget to:
(1) allocate funds from Assigned Fund Balance to expenditures for Parks & Recreation Master
plan (PRMP) projects - Gateway artificial turf, Pelican Community Park closed campus, Heritage
and Town Center Park playground equipment, The Spot Improvements, Intracoastal Sports
Park, & City-wide Parks Improvements; (2) reallocate funds from Heritage Park playground
equipment to Consulting for design of a new Heritage Park facility; (3) reallocate funds from
land acquisition for demolition, surveying/mapping and title search associated with purchase of
18126 Atlantic Blvd; 4 Allocate funds for Samson Park shade structure repairs, (5) Allocate
additional funds for the City Anniversary celebration and transfer funds between accounts for
anticipated needs: (6) Allocate additional funds for the installation of the emergency generator
at Gateway Parke and
WHEREAS, the City Commission has determined that it is necessary to amend the
Budget, as set forth in Exhibit "A", based upon the review and analysis provided by the Finance
Director.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF SUNNY
ISLES BEACH, FLORIDA, AS FOLLOWS:
Section 1. Incorporation of Recitals. The foregoing "WHEREAS" clauses are hereby ratified
and confirmed as being true and correct and are hereby made a specific part by this Ordinance
upon adoption hereof.
Section 2. Budget Amendment. The Budget for Fiscal Year 2023-2024 adopted by
Ordinance No. 2023-606 is hereby amended as Amendment No. BA2324-01 to reflect the
revisions in Exhibit "A". All other terms and conditions of Ordinance No. 2023-606 not
otherwise amended by this Ordinance shall remain in full force and effect.
1 Additions to existing text are shown by underline, changes to existing text on second reading are shown by
double underline, deletions on first reading are shown as StFikethMugh and deletions on second reading are
shown as
02024- Budget Amend BA2324-02 FY 2023-2024 2nd Rdg Page 1 of 2
Section 3. Authorization of City Manager. The City Manager is hereby authorized to take all
actions necessary to implement the terms and conditions of this Ordinance.
Section 4. Effective Date. This Ordinance shall be effective ten (10) days after adoption on
second reading.
PASSED AND ADOPTED on first reading this 181h day of April, 2024.
PASSED AND ADOPTED on second reading t
r, CMC, City Clerk
First Reading
Motion:
Second:f;�JSsl�l��c� ��S/?s�/k" ` f
V
Vote on First Reading:
Mayor Svechin
Vice Mayor Lama
Commissioner Joseph
Commissioner Stuyvesant
Commissioner Viscarra
Vote on Second Reading:
Mayor Svechin
Vice Mayor Lama
Commissioner Joseph
Commissioner Stuyvesant
Commissioner Viscarra
Larisa Svechin, Mayor
APPROVED AS TO FORM
AND LEGAL SUFFICIENCY:
AU8&"4�40
Again E. Boileau, for Nabors, Giblin &
Nickerson, P.A., City Attorney
Second Readink
Motion:
Second:t?,11.1j5rCr�1
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02024- Budget Amend BA2324-02 FY 2023-2024 2nd Rdg Page 2 of 2
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ANNUAL COMPREHENSIVE FINANCIAL REPORT
OF THE CITY OF SUNNY ISLES BEACH, FLORIDA
FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
G1TY op
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Prepared by the
Finance Department
The Height of Living
CITY OF SUNNY ISLES BEACH, FLORIDA
CONTENTS
Introductory Section
Letterof Transmittal.................................................................................................................. i -x
Certificate of Achievement for Excellence in Financial Reporting ............................................ xi
OrganizationalChart .................................................................................................................. xii
List of City Officials ii
Financial Statements
Independent Auditors' Report ................................................................................................... 1-4
Management's Discussion and Analysis (Required Supplementary Information) ................. 5-16
Basic Financial Statements
Government -wide Financial Statements
Statement of Net Position.....................................................................................................17
Statement of Activities..........................................................................................................18
Fund Financial Statements
Balance Sheet — Governmental Funds..................................................................................19
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position........................................................................................20
Statement of Revenues, Expenditures and Changes in Fund Balances —
Governmental Funds..........................................................................................................21
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances of Governmental Funds to the Statement of Activities .........................22
Statement of Net Position — Proprietary Fund......................................................................23
Statement of Revenues, Expenses and Changes in Net Position — Propriety Fund..............24
Statement of Cash Flows — Proprietary Fund.......................................................................25
Notes to Basic Financial Statements.................................................................................. 26-67
Required Supplementary Information
Budgetary Comparison Schedules:
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget to Actual — General Fund................................................................................... 68-69
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget to Actual — American Rescue Plan Fund..................................................................70
Note to Budgetary Comparison Schedule................................................................................71
CITY OF SUNNY ISLES BEACH, FLORIDA
CONTENTS
Required Supplementary Information (continued):
Schedule of Changes in the Total OPEB Liability and Related Ratios...................................72
Schedule of Proportionate Share of Net Pension Liability —
Florida Retirement System Pension Plan......................................................................... 73
Schedule of Proportionate Share of Net Pension Liability —
Retiree Health Insurance Subsidy Program..........................................................................74
Schedule of Contributions — Florida Retirement System Pension Plan..................................75
Schedule of Contributions — Retiree Health Insurance Subsidy Program...............................76
Other Supplementary Information:
Combining and Individual Fund Financial Statements and Schedules:
Combining Balance Sheet — Nonmajor Governmental Funds.................................................77
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances — Nonmajor Governmental Funds.........................................................................78
Budgetary Comparison Schedules:
Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget
and Actual — Street Maintenance and Construction Fund....................................................79
Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget
andActual — Building Fund.................................................................................................80
Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget
and Actual — General Capital Projects Fund.........................................................................81
Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget
And Actual — Public Art Trust Fund.....................................................................................82
Statistical Section
Table 1 — Net Position by Component............................................................................... 83-84
Table 2 — Changes in Net Position.................................................................................... 85-88
Table 3 — Fund Balances of Governmental Funds............................................................. 89-90
Table 4 —
Changes in Fund Balances of Governmental Funds .......................................... 91-92
Table 5 —
General Governmental Tax Revenues by Source....................................................93
Table 6 —
Assessed Value and Estimated Actual Value of Taxable Property ................... 94-95
Table 7 —
Property Tax Rates............................................................................................. 96-97
Table 8 —
Principal Property Taxpayers............................................................................. 98-99
Table 9 —
Property Tax Levies and Collections.....................................................................100
Table 10
— Ratios of Outstanding Debt by Type ...........................................................101
-102
Table 11
— Direct and Overlapping Governmental Activities Debt ......................................103
Table 12
— Legal Debt Margin Information...........................................................................104
CITY OF SUNNY ISLES BEACH, FLORIDA
CONTENTS
Statistics Section (continued):
Table 13
— Pledged Revenue Coverage.................................................................................105
and on Compliance and Other Matters Based on an Audit of Financial Statements
Table 14
— Demographic and Economic Statistics................................................................106
Table 15
— Principal Employers........................................................................... ..................107
Report on Internal Control Over Compliance Required by the Uniform Guidance...
Table 16
— Full -Time Equivalent City Government Employees by Function .......................108
Notes to Schedule of Expenditures of Federal Awards .........................................................117
Table 17
— Operating Indicators by Function........................................................................109
Summary Schedule of Prior Audit Findings..........................................................................120
Table 18
— Capital Asset Statistics by Function....................................................................110
Reporting Section
Independent Auditors' Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards...............................111-112
Independent Auditors' Report on Compliance for each Major Federal Program and
Report on Internal Control Over Compliance Required by the Uniform Guidance...
113-115
Schedule of Expenditures of Federal Awards........................................................................116
Notes to Schedule of Expenditures of Federal Awards .........................................................117
Schedule of Findings and Questioned Costs..................................................................118-119
Summary Schedule of Prior Audit Findings..........................................................................120
Management Letter in Accordance with the Rules of the Auditor General of the
Stateof Florida............................................................................................................
121-122
Independent Accountants' Report on Compliance Pursuant to Section 218.415,
FloridaStatutes...................................................................................................................123
Affidavit, F.S. Section 163.31801, Impact Fees....................................................................124
INTRODUCTORY SECTION
CITY op
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City Commission April 29, 2024
Larisa Svechin
Mayor
Alex Lama Honorable Mayor
Vice Mayor Members of the City Commission
Citizens of the City of Sunny Isles Beach, Florida
Jerry Joseph
Commissioner We are pleased to submit the Annual Comprehensive Financial Report
Fabiola Stuyvesant ("ACFR") of the City of Sunny Isles Beach, Florida (the "City"), for the fiscal
Commissioner year ended September 30, 2023. State law requires that all general-purpose local
Jengovernments annually publish a complete set of financial statements within nine
Commissioner
oner ra months of the close of each fiscal year. These financial statements are presented
Commissioner in conformity with generally accepted accounting principles in the United States
of America ("GAAP") and audited in accordance with generally accepted
auditing standards by an external auditing firm. We believe that this report
Stan Morris complies with these requirements and continues to present the City's strong
City Manager tradition of full financial disclosure. The philosophy is reflected in the
Mauricio Betancur informative financial analysis provided by the City's Finance Department and
City Clerk, CMC the statistical tables included herein.
The ACFR's role is to assist in making good decisions and to assist in assessing
accountability to the citizenry by:
• Comparing actual financial results with the legally adopted budget, where
appropriate;
• Assessing financial condition and results of operations;
• Assisting in determining compliance with finance -related laws, rules and
regulations; and
• Assisting in evaluating the efficiency and effectiveness of City
operations.
Responsibility for both the accuracy of the presented data and the completeness
and fairness of the presentation, including all disclosures, rests with the
management of the City.
We believe the data, as presented, is accurate in all material respects; that it is
presented in a manner designed to fairly present the financial position and results
of operations of the City; and that all disclosures necessary to enable the reader
to gain an understanding of the City's financial activity have been included.
CITY OF SUNNY ISLES BEACH
18070 Collins Ave, Sunny Isles Beach, FL 33160
-_. _.. _ —� — sibfl.net 1305,947.0606
CITY op
City Commission Marcum LLP, our independent audit firm, has issued unmodified opinions on
the City's financial statements for the fiscal year ended September 30, 2023. The
La Svechin independent auditors' report is located at the front of the financial section of this
Mayyoror report.
Alex Lama
Vice Mayor An unmodified opinion is issued when an auditor believes that the financial
Jerry Joseph statements are free from material misstatement. Information is considered
Commissioner material if the omission or misstatement can influence the economic decision of
users of the financial statements.
Fabiola Stuyvesant
Commissioner The City's financial statements have been prepared using the reporting model in
Jeniffer Viscarra accordance with Governmental Accounting Standards. Management's
Commissioner Discussion and Analysis (MD&A) immediately follows the independent
auditors' report and provides a narrative introduction, overview, and analysis of
the basic financial statements. MD&A complements the letter of transmittal and
Stan Morris should be read in conjunction with it.
City Manager
Mauricio Betancur THE CITY OF SUNNY ISLES BEACH
City Clerk, CMC
Profile
The City occupies 1.78 square miles in the northeastern corner of Miami -Dade
County, the most populated county in the State of Florida. With an estimated
population of 21,996 people, the City ranks 15th in population amongst the 34
municipalities in the County (Sources: US Census Bureau 2022 Census
Estimates). The City is located on a barrier island bounded by the Atlantic
Ocean on the east and the Atlantic Intracoastal Waterways on the west. The City
has been developed primarily for residential purposes.
The City was incorporated in 1997 and operates under a Council -Manager form
of government. Policy-making and legislative authority are vested in the
governing commission, which consists of a Mayor and four Commissioners.
The City Commission is vested with policy -setting authority, adopting the
annual budget, approving general purchases and services of the governmental
operations, appointing committees, and hiring the City Manager, City Clerk and
City Attorney. The City Manager is responsible for recommending and carrying
out the policies and ordinances of the City Commission, appointing the directors
of the City's departments, hiring of staff, submitting a proposed annual budget,
advising the Commission as to the financial condition of the City, and
overseeing the day-to-day operations of the City.
ii
CITY OF SUNNY ISLES BEACH
18070 Collins Ave, Sunny Isles Beach, FL33160--- --------_.__
sibfl.net 1305.947.0606
CITY Op
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City Commission The City is divided into four districts with one Commissioner required to reside
in each district. Each Commissioner is elected "at large" and is elected for a
Lari r Svechin four-year term. The Mayor is elected "at large" and is elected for a four-year
Mayor
term.
Alex Lama
Vice Mayor Services Provided
Jerry Joseph
Commissioner The City of Sunny Isles Beach provides a full range of municipal services: public
safety, ocean rescue, building, planning and zoning, code compliance,
Fabiola Stuyvesant transportation, maintenance of roads and parking facilities, stormwater, parks,
Commissioner recreation and cultural programs, general government and administrative
Jeniffer Viscarra services.
Commissioner
Fire protection, water and sewer utilities, education and welfare services are
® provided by other units of government whose activities are not included in the
Stan Morris accompanying financial statements.
City Manager
Accounting and Internal Control
Mauricio Betancur
City Clerk, CMC Management of the City is responsible for establishing and maintaining an
internal control structure designed to ensure that the assets of the City are
protected from loss, theft or misuse and to ensure that adequate accounting data
is compiled to allow for the preparation of financial statements in conformity
with GAAP. The internal control structure is designed to provide reasonable,
but not absolute, assurance that the objectives are met. The concept of
reasonable assurance recognizes that: (1) the cost of a control should not exceed
the benefits likely to be derived; and (2) the valuation of costs and benefits
requires estimates and judgments by management.
Single Audit
As a recipient of federal, state, and county financial assistance, the City is also
responsible for ensuring that an adequate internal control structure is in place to
ensure compliance with applicable laws and regulations to those programs. This
internal control structure is subject to periodic evaluation by management.
CITY OF SUNNY ISLES BEACH
___. __ __.___—__._ .__ _.__.. __ 18070 Collins Ave, Sunny Isles Beach, FL 33160
-ti^ sibfl.net 1305.947.0606 µ
CITY op
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City Commission The City is required to undergo an annual Single Audit performed under the
provisions of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform
Mayor
La r Svechin Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards"Uniform Guidance"), ), and Chapter 10.550, Rules of the
Alex Lama Auditor General, State of Florida, if the City incurs aggregate expenditures of at
Vice Mayor least $750,000 in federal or state funds. The information related to the Single
Jerry Joseph Audit, including the Schedule of Expenditures of Federal Awards and State
Commissioner Financial Assistance (as applicable), Findings and Questioned Costs, and
auditors' reports on the internal control and compliance with applicable laws
Fabiola Stuyvesant and regulations are included in the compliance section of this report, when
Commissioner applicable.
Jeniffer Viscarra
Commissioner Budgetary Controls
® In addition, the City maintains strict budgetary controls. The objective of the
budgetary controls is to ensure compliance with legal provisions embodied in
Stan Morris
City Manager the annual appropriated budget approved by the City's governing body. In
accordance with state laws, the Adopted Budget is posted on the City's website
Mauricio Betancur within 30 days of adoption. The activities of the General Fund, Special Revenue
City Clerk, CMC Funds, and Capital Project Funds are included in the annual appropriated budget.
The level of budgetary control (that is, the level at which expenditures cannot
legally exceed the appropriated amount) is established at the departmental level.
The City maintains an encumbrance accounting system as one technique of
accomplishing budgetary control. Encumbered amounts lapse at year-end.
However, encumbrances generally are re -appropriated as part of the following
year's budget.
All expenditures other than personnel services are controlled by a procurement
system, which encumbers purchase orders against budgets prior to issuance to
the vendors. Purchase orders are not issued until appropriations are made
available.
Transfers between line items or departmental accounts within the departmental
budget or decreases in line items or departmental accounts not amounting to
more than 20% of the total budget of each department may be made by the City
Manager. All budgetary transfers between departments shall be approved by
resolution of the City Commission; however, it is our practice to bring all
transfers to the City Commission for approval through the budget amendment
process. Budget amendments are submitted, as needed, to the City Commission
for their consideration and approval by ordinance.
iv
CITY OF SUNNY ISLES BEACH
18070 Collins Ave, Sunny Isles Beach, FL 33160
sibfl.net 1305.947.0606- --- _ -._.—- —
CITY OF
y \5 LES
2
City Commission
LOCAL ECONOMY
Larisa Svechin
Since its origin, the City has been developed mostly for residential aspirations.
Mayor
Today, the luxury residential component is one of the main economic engines
Alex Lama
of our City. After the City's incorporation and the adoption of its
Vice Mayor
Comprehensive Plan, allowing for a strategic revitalization of its greater assets
Jerry Joseph
— the waterfront residences and the beach - the City experienced significant
Commissioner
growth in its tax base. This is mostly attributable to the replacement of old
597,556,627
motels with the redevelopment of luxurious high-rise residential condominiums.
Fabiola Stuyvesant
During the 2008 housing collapse, the City experienced a moderate downturn in
Commissioner
construction and tax base. However, in 2011, the City rebounded with its
Jeniffer Viscarra
approval of high-end luxury residential condominiums. The 2011 fiscal year
Commissioner
ended with taxable value at its lowest point in years. During the years of
(162,266,551) (255,253,007) (392,793,020) 1371,480,554) (231,735,785) (177,678,121)
adjustment, the City experienced new construction which helped minimize the
(266,348,629)
impact of the devaluation of the property values. Property values started to
Total Final Taxable Values
appreciate again in 2012, and the continuing increase in property values in 2013
Stan Morris
through 2015 is primarily attributed to the turnover of long-term owned
City Manager
properties to new buyers and as mentioned, the rebound of new construction of
Mauricio Betancur
residential projects. This allowed for the property taxable valuation to "reset"
City Clerk, CMC
to the current fair market value, compared to the long-term owned properly that
12.23%
was protected at the fair market value at time of purchase, with annual increases
equal to the lesser of CPI or 3%. Beginning with the 2016 year, we began seeing
significant new construction added to our tax rolls, bringing our projected 2023
taxable value, for fiscal year 2023-24, to over $15.9 billion.
The millage rate was reduced to 2.6 mils in fiscal year 2015, and by 1/10 of a
mil each year through 2022 to 2.1 mils. Property tax values were projected to
increase again for fiscal year 2023 and the millage rate was reduced to 2.0 mils,
with a projected collection of $26.2 million in ad valorem revenues.
v
CITY OF SUNNY ISLES BEACH
18070 Collins Ave, Sunny Isles Beach, FL 33160"
sibfl.net1305.947.0606
2024
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2017
2016
2015
Current Year Adjusted Values
15,312,131,485 13,584,165,132 11,338,676,927 10,971,897,147 10,648,993,425 11,089,118,428 10,299,485,811
9,513,872,268
8,684,155,480
7,679,032,753
Plus New Construction
656,276,116
197,629,908 1,297,165,759 943,614,945 919,502,238 31,417,157 798,407,488
597,556,627
275,651,745
226,030
Total Estimated Taxable Values
15,968,407,601
13,781,795,040 12,635,842,686 11,915,512,092 11,568,495,663 11,120,535,585 11,097,893,299 10,111,428,895
8,959,807,225
7,679,258,783
Adjustments
NIA
(162,266,551) (255,253,007) (392,793,020) 1371,480,554) (231,735,785) (177,678,121)
(142,553,1121
(266,348,629)
(119273,765)
Total Final Taxable Values
15,968,407,601
13,619,528,489 12,380,589,679 11,522,719,072 11,197,015,109 10,888,799,800 10,920,215,178 9,968,875,783
8,693,458,596
7,559,985,018
Change from Prior Year
17.25%
11.327, 9.66% 2.91% 2.03% -0.30% 9,54%
14.67%
14.99%
12.23%
v
CITY OF SUNNY ISLES BEACH
18070 Collins Ave, Sunny Isles Beach, FL 33160"
sibfl.net1305.947.0606
CITY OF
\SLESe
� it
City Commission MAJOR INITIATIVES
Larisa Svechin
For the Year
Mayor
Alex Lama
Through good governance and sound management, the city continues to be one
Vice Mayor
of the most financially secure local governments in Florida. In our 27th year of
Jerry Joseph
incorporation, and as we continue to add more housing units, we are preparing
Commissioner
for the need for major infrastructure improvements. Knowing that these Capital
Projects are on the horizon, we are committed to conserve in our operating
Fabiola Stuyvesant
budget where possible understanding the need to fund our Capital Improvement
Commissioner
Projects through a transfer from our general fund while maintaining our level of
Jeniffer Viscarra
world-class service and maintenance. We want to ensure that the City of Sunny
Commissioner
Isles Beach remains true to our commitment to set the standard for quality
government in South Florida.
For the Future
Stan Morris
City Manager
With the completion of the Parks and Recreation Master Plan, we are ready to
Mauricio Betancur
move forward with major park improvement initiatives. We recognize that the
City Clerk, CMC
existing supply of parks and community spaces has not kept up with the demand.
Starting with the development of the Intracoastal Sports Park this year, we must
now plan for the next 10-15 years of parks and programming. We started that
with the purchase of additional park property adjacent to Pelican Community
Park.
We should be closing out the undergrounding of the Collins Avenue utility
distribution wires in 2024 as well as the Golden Shores Utility Undergrounding
project. With our commitment to a more resilient and sustainable future, the
Golden Shores Stormwater Pump Station renovation will commence this year.
Determined to be both fiscally responsible and resolve flooding in the Central
Island area, we are researching innovative and cost-effective options as the
traditional pump station plan was cost prohibitive.
Pedestrian Safety is an initiative identified by our City Commission for long-
term planning and we continue to work through recommendations presented by
the Mobility and Pedestrian Safety Advisory Committee. Both short- and long-
term projects are at various stages of design including the Urban Trail which
will be completed this year. The completion of the Collins Avenue
Undergrounding Project will allow us to proceed with the upgrading and
restoration of our streetscape, including landscaping and decorative brick
sidewalks along Collins Avenue.
vi
CITY OF SUNNY ISLES BEACH
18070 Collins Ave, Sunny Isles Beach, FL 33160 -
-- _�
sibfl.net1305.947.0606._�-•-__�_.._�__.____�_�_..__.._
CITY Op
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Ln �- - �. 30:
City Commission The following projects were completed during 2023:
Larisa Svechin . Marina del Mar is located at 100, 150, 200 and 300 Kings Point Drive
Mayor and comprises two new apartment towers with a total of 254 dwelling
Alex Lama units, a remodeled existing apartment tower with 335 dwelling units, and
Vice Mayor an enclosed garage with 860 parking spaces. A Temporary Certificate of
Jerry Joseph Occupancy (TCO) for the project was obtained in 2022. The project is
Commissioner working towards a final Certificate of Occupancy (CO) by wrapping -up
installations in the amenity spaces and right-of-way landscaping
Fabiola Stuyvesant improvements. This project also includes a workforce housing
Commissioner component.
Jeniffer Viscarra
Commissioner The following projects are currently under way during 2024:
• The Aurora Condominiums project, located at 17550 Collins Avenue, is
a mixed-use tower consisting of 5,721 square feet of commercial space
Stan Morris
City Manager on the ground floor and 61 residential condominium units on the upper
floors, for a total of 126,888 square feet of floor area. A partial
Mauricio Betancur Temporary Certificate of Occupancy (TCO) for the project was obtained
City Clerk, CMC in November of 2023 and the project will continue to obtain TCOs for
the amenity spaces and commercial space throughout 2024.
• The Chabad Lubavitch Russian Center of South Florida is a new
community center located at 488 Sunny Isles Boulevard. The community
center will have a Chabad, a learning facility, and a social hall. A partial
Temporary Certificate of Occupancy (TCO) for the project was obtained
in October of 2023 and the project will continue to obtain TCOs for the
remaining spaces throughout 2024.
• The Estates of Acqualina off-site parking garage is located at 17941
Atlantic Blvd. and is a 10 -story parking garage with approximately 432
parking spaces. A Temporary Certificate of Occupancy (TCO) for the
project was obtained in March of 2024 and the project is working
towards the final Certificate of Occupancy (CO).
The Estates at Acqualina, located at 17901 Collins Avenue, encompasses
two residential towers with a total of 234 dwelling units and
approximately 1,190,676 square feet of floor area. The first TCOs for the
two towers were obtained in 2022, including many residential units and
the restaurant space. The project will continue to obtain TCOs for
residential and amenity spaces units in both towers throughout 2024.
vii
CITY OF SUNNY ISLES BEACH
;Ave, Sunny Isles Beach, FL 33160
sibfl.net 1305.947.0606
CITY op
City Commission • The St. Regis Residences (formally known as La Playa Varadero) is
located at 18801 Collins Avenue and is approved for two mixed-use
LaSvechin towers, standing 62 stories each, with 490 residential units and
Mayyoror approximately 1,228,435 square feet of floor area. The sales center is
Alex Lama currently operating at this location. Construction of Phase I (the south
Vice Mayor tower) is anticipated to begin in 2024.
Jerry Joseph
Commissioner • The Bentley Residences is a single, 62 -story tower located at 18401
FabCollins Avenue that is approved for 216 residential condominium units
Commissioner Stuyvesant with a floor area of 616,185 square feet. The tower will replace the
Commis
Thunderbird Beach Resort and broke ground in April of 2024.
Jeniffer Viscarra
Commissioner Projects expected to start in the 2024-25 fiscal year and beyond include the
® following:
Stan Morris • Hotel Monaco is located at 17501 Collins Avenue and is approved for
City Manager 113 hotel units with a floor area of 5 0,7 84 square feet and will be three
stories tall.
Mauricio Betancur
City clerk, CMC The City expects a modest steady growth in the tax base to continue for the next
several years resulting from reassessments of existing property that turnover to
new buyers and also a steady growth in new construction additions for FY 2024
through FY 2028, as highlighted above.
The City is closely monitoring state legislative proposals and their potential
impacts and limitations to Florida municipalities.
LONG-RANGE FINANCIAL PLANNING
The City Commission has adopted financial policies for operating, capital,
investments, and debt management. Annually, the City Manager has budget
meetings with the elected officials and individual departments that are used as a
guide in the preparation and development of the annual budget.
The Capital Improvements Program (CIP) is prepared and presented to the City
Commission, as a five-year plan, as part of the annual budget process. The
projects represent the City's long-range plan for facilities, infrastructure
improvements, traffic circulation and pedestrian safety improvements, as well
as park acquisition and development.
viii
CITY OF SUNNY ISLES BEACH
- -�-T—� 18070 Collins Ave, Sunny Isles Beach, FL 33160
sibfl.net 1305.947.0606
CITY OF
y \S L FS
City Commission OTHER INFORMATION
Larisa Svechin Independent Audit
Mayor
Alex Lama The City Charter, Section 4. 10, requires an annual audit of the City's financial
Vice Mayor statements by independent auditors selected by the City Commission. This
Jerry Joseph requirement has been complied with and the independent auditors' report is
Commissioner included in the financial section of this report.
Fabiola Stuyvesant Awards and Acknowledgements
Commissioner
Jeniffer Viscarra The Government Finance Officers 'Association of the United States and
Commissioner Canada (GFOA) awarded a Certificate of Achievement for Excellence in
Financial Reporting to the City for its ACFR for the fiscal year ended
® September 30, 2022. This was the 13th consecutive year the City received the
Staaward. In order to be awarded a Certificate of Achievement, a governmental
City Manager Morris unit must publish an easily readable and efficiently organized ACFR. This
City
report must satisfy both GAAP and applicable legal requirements.
Mauricio Betancur A Certificate of Achievement is valid for a period of one year only. We believe
City Clerk, CMC our current ACFR continues to meet the Certificate of Achievement Program's
requirements, and we are submitting it to the GFOA to determine its eligibility
for another certificate.
The GFOA also awarded the Distinguished Budget Presentation Award for the
annual budget document for the October 1, 2022 — September 30, 2023 budget.
This was the 15th consecutive year the City received this award. This award
is the highest form of recognition in governmental budgeting and represents a
significant achievement by the City.
It reflects the commitment of the governing body and staff to meeting the
highest principles of governmental budgeting. In order to receive the award,
the City satisfied nationally recognized guidelines for effective budget
presentation. These guidelines are designed to assess how well an entity's
budget serves as a policy document, a financial plan, an operations guide, and
a communications device.
ix
CITY OF SUNNY ISLES BEACH
18070 Collins Ave, Sunny Isles Beach, FL 33160 _—..—,z __.—_..—_..._._..___._.. ---
sibfl.net 1305.947.0606 cam— -- yYr
CITY op
\SLES 49
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�
City Commission
Our Finance team continues to lead us to the success of our financial well-being.
It is the hard work and commitment to fiscal responsibility of the members of
Larisa Svechin
the Finance Department and our department heads that make this report possible.
Mayor
We would like to express our appreciation to the finance team for the preparation
Alex Lama
of this report. We are grateful for the support of the Mayor and Commission for
Vice Mayor
maintaining the highest standards of professionalism in the management of the
Jerry Joseph
City.
Commissioner
Fabiola Stuyvesant Respectfully submitted,
Commissioner
Jeniffer Viscarra
Commissioner
e;—a Amm� MoQnot-, 5�q_'
Stin Morris, T1ffA1.N_eely
Stan Morris Cite Manager Finance Director
City Manager
Mauricio Betancur
City Clerk, CMC
x
CITY OF SUNNY ISLES BEACH
-- = - - ------- � 18070 Collins Ave, Sunny Isles Beach, FL 33160 - - —a---- —.
sibfl.net 1305.947.0606
Government Finance Officers ,Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Sunny Isles Beach
Florida
For its Aiunial Comprehensive
Financial Report
For the Fiscal Year Elided
September 30, 2022
Executive Director CEO
X1
X11
City of Sunny Isles Beach, Florida
CITY OFFICIALS
CITY COMMISSION
Larisa Svechin - Mayor
Alex Lama- Vice Mayor
Jeniffer Viscarra
Jerry Joseph
Fabiola Stuyvesant
CITY MANAGER
Stan Morris
CITY ATTORNEY
Alain Boileau for
Nabors Giblin & Nickerson P.A.
CITY CLERK
Mauricio Betancur
FINANCE DIRECTOR
Tiffany D. Neely
CITY AUDITORS
Marcum LLP
FINANCIAL STATEMENTS
INDEPENDENT AUDITORS' REPORT
MA RCUM
ACCOUNTANTS m ADVISORS
INDEPENDENT AUDITORS' REPORT
The Honorable Mayor, the City Commission and City Manager
City of Sunny Isles Beach, Florida
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of the City of Sunny
Isles Beach, Florida (the "City"), as of and for the fiscal year ended September 30, 2023, and the
related notes to the financial statements, which collectively comprise the City's basic financial
statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all
material respects, the respective financial position of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of the City, as of
September 30, 2023, and the respective changes in financial position, and, where applicable, cash
flows thereof for the fiscal year then ended in accordance with accounting principles generally
accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America (GAAS) and the standards applicable to financial audits contained
in Government Auditing Standards issued by the Comptroller General of the United States
(Government Auditing Standards). Our responsibilities under those standards are further described
in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements relating to our audit. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for
the design, implementation, and maintenance of internal control relevant to the preparation and
fair presentation of financial statements that are free from material misstatement, whether due to
fraud or error.
Marcum LLP / One Southeast Third Avenue / Suite 1100 / Miami, FL 33131 1 Phone 305.995.9600 / marcumllp.com
In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the City's
ability to continue as a going concern for twelve months beyond the financial statement date,
including any currently known information that may raise substantial doubt shortly thereafter.
Auditors' Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors' report
that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS
and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered material if
there is a substantial likelihood that, individually or in the aggregate, they would influence the
judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is
expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of
the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the City's ability to continue as a going concern
for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control—related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis on pages 5-16, the budgetary comparison schedules on
pages 68-71, the schedule of changes in the Total OPEB liability and related ratios on page 72,
and the pension schedules on pages 73-76, be presented to supplement the basic financial
statements. Such information is the responsibility of management and, although not a part of the
2
basic financial statements, is required by the Governmental Accounting Standards Board who
considers it to be an essential part of financial reporting for placing the basic financial statements
in an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with GARS, which consisted
of inquiries of management about the methods of preparing the information and comparing the
information for consistency with management's responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The combining and individual fund
financial statements and schedules as listed in the table of contents, and the schedule of
expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance) are presented for purposes of additional analysis and are not a
required part of the basic financial statements. Such information is the responsibility of
management and was derived from and relates directly to the underlying accounting and other
records used to prepare the basic financial statements. The information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the combining and individual
fund financial statements and schedules and the schedule of expenditures of federal awards are
fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other
information comprises the introductory section and the statistical section but does not include the
basic financial statements and our auditors' report thereon. Our opinions on the basic financial
statements do not cover the other information, and we do not express an opinion or any form of
assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information
and the basic financial statements, or the other information otherwise appears to be materially
misstated. If, based on the work performed, we conclude that an uncorrected material misstatement
of the other information exists, we are required to describe it in our report.
3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
April 29, 2024 on our consideration of the City's internal control over financial reporting and on
our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is solely to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the effectiveness of the City's internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering City's internal control over financial
reporting and compliance.
°ylCa4za4 . L I P
Miami, FL
April 29, 2024
4
MANAGEMENT'S DISCUSSION AND ANALYSIS
(MD&A)
City of Sunny Isles Beach, Florida
Management's Discussion and Analysis
September 30, 2023
As the management of the City of Sunny Isles Beach (the "City"), we offer readers of the City's financial
statements this narrative overview and analysis of the financial activities of the City for the fiscal year
ended September 30, 2023. We encourage readers to consider the information presented here in
conjunction with additional information that we have furnished in our letter of transmittal which can be
found on pages i through x of this report. All amounts in this section, unless otherwise indicated, are
expressed in millions of dollars.
Financial Highlights
• The assets and deferred outflows of resources of the City exceeded its liabilities and deferred
inflows of resources at the close of the most recent fiscal year by $329.2 (net position). Of
this amount, $57.6 represents unrestricted net position, which may be used to meet the
government's ongoing obligations to citizens and creditors.
• The City's total net position increased by $6.1 during the current fiscal year. Net position
of our governmental and business -type activities increased by $5.7 and $0.4, respectively.
• As of the close of the current fiscal year, the City's governmental funds reported combined
ending fund balances of $106.2, an increase of $6.0 in comparison with the prior year.
Approximately 52.4% of this balance or, $55.6 is available for spending at the government's
discretion (unassigned fund balance).
• At the end of the current fiscal year, the fund balance for the General Fund was $76.4 or
199.7% of the total General Fund expenditures and other financing sources (uses). Of this
balance, $10.0 has been committed to the Hurricane/Emergency and Disaster Recovery
Operating Reserves, $9.4 has been assigned to the Fiscal Stability Reserve, $1.3 for prepaid
assets and $55.6 million was unassigned and available for new spending.
• The City's governmental funds had no deferred outflows of resources and its deferred
inflows of resources were $48.7. The increase of $17.2 was due to an adjustment in the lease
term for a lessee since the implementation of Governmental Accounting Standards Board
("GASB") Statement No. 87, Leases ("GASB 87").
• Investment income increased by $5.0 during the current fiscal year. This was due to the
increase in interest rates, average yield went up from 1.69% in the prior year to 3.85%. In
the prior year, there was also a substantial decrease reflected in the unrealized fair market
value of the City's investments, as a result of the market volatility caused by unstable
economic conditions and high inflation.
Overview of the Financial Statements
The discussion and analysis are intended to serve as an introduction to the City's basic financial
statements. The City's financial statements comprise three components: 1) government -wide
financial statements; 2) fund financial statements; and 3) notes to the financial statements. This
report also contains other supplementary information in addition to the basic financial statements.
City of Sunny Isles Beach, Florida
Management's Discussion and Analysis
September 30, 2023
Government -wide Financial Statements: The government -wide financial statements are designed
to provide readers with a broad overview of the City's finances, in a manner similar to a private -
sector business. The City's government -wide financial statements include the statement of net
position and statement of activities.
The Statement of Net Position presents information on the assets held, liabilities owed by the City
and any deferred inflows and outflows of resources that pertain to a future reporting period. Assets
are reported when the City acquires ownership over the assets, they represent current resources that
are controlled by the City, and liabilities are reported when they are incurred, they represent current
and long-term obligations.
The deferred outflows of resources are the consumption of net assets applicable to a future reporting
period and they increase net position similar to assets. The deferred inflows of resources are the
acquisition of net assets applicable to a future period and they decrease net position similar to
liabilities.
The difference between the City's total assets, total liabilities and deferred inflows and outflows of
resources is net position. Over time, increases or decreases in net position may serve as a useful
indicator of whether the financial position of the City is improving or deteriorating. In general, as
this 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 on the
statement of activities are measured in a manner similar to the approach used in the private sector
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 after the end of the
accounting period and expenses are recorded even though they may not have used cash during the
current period.
Both government -wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions
that are intended to recover all or a significant portion of their costs through user fees and charges
(business -type activities). The governmental activities of the City include general government,
public safety, physical environment, transportation, cultural and human services. The business -type
activities of the City are the Stormwater operations.
The government -wide financial statements can be found on pages 17 and 18 of this report.
Fund Financial Statements: Unlike government -wide financial statements, the focus of fund
financial 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 that have
been segregated for specific activities or objectives. The City, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal
requirements. All of the funds of the City can be divided into two categories: governmental funds
and proprietary funds.
D
City of Sunny Isles Beach, Florida
Management's Discussion and Analysis
September 30, 2023
Governmental Funds: Governmental fund financial statements consist of a balance sheet and
statement of revenues, expenditures, and changes in fund balances. These statements are prepared
on an accounting basis that is significantly different from that used to prepare the government -wide
financial statements.
In general, these financial statements have a short-term emphasis and, for the most part, measure
and account for cash and other assets that can easily be converted to cash. For example, amounts
reported on the balance sheet include items such as cash and receivables collectible within a short
period of time, but do not include capital assets such as land and buildings. Fund liabilities include
amounts that are to be paid within a short period of time after the end of the fiscal year. The
difference between a fund's total assets and total liabilities (and deferred inflows/outflows as
applicable) is labeled as the fund balance, and generally indicates the amount that can be used to
finance the next fiscal year's activities. The operating statement for governmental funds reports
only those revenues and expenditures that were 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 also reported
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 and the
government -wide financial statements, there are often significant differences between the totals
presented. For this reason, there is an analysis after the balance sheet that reconciles the total fund
balances to the amount of the net position presented in the governmental activities' column on the
statement of net position.
Also, there is an analysis after the statement of revenues, expenditures, and changes in fund balances
that reconciles the total change in fund balances for all governmental funds to the change in net
position as reported in the governmental activities' column in the statement of activities.
The City maintains seven individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures,
and changes in fund balances for the General Fund, the American Rescue Plan Fund, the General
Capital Projects Fund, and the Law Enforcement Trust Fund which are major funds. The City
presents data from all other non -major funds in a single column (non -major funds). Individual fund
data for each of these non -major governmental funds is provided in the form of combining
statements elsewhere in this report.
The City adopts an annual appropriated budget for its General Fund. A budgetary comparison state-
ment has been provided for the General Fund to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 19 through 22 of this
report.
Proprietary Funds: Proprietary fund financial statements consist of a statement of net position, a
statement 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 prepare
government -wide financial statements. The City maintains one type of proprietary fund known as
an enterprise fund.
7
City of Sunny Isles Beach, Florida
Management's Discussion and Analysis
September 30, 2023
The City uses enterprise funds to account for business -type activities that charge fees to customers
for the use of specific goods or services. These funds are used to report the same functions presented
as business -type activities in the government -wide financial statement. The City uses an enterprise
fund to account for its stormwater operations.
Proprietary funds provide the same type of information as the government -wide financial statements
only in more detail. The basic proprietary fund financial statements can be found on page 23 through
25 of this report.
Notes to the Basic Financial Statements: The notes provide additional information that is essential
to a full understanding of the data provided in the government -wide and fund financial statements.
The notes to the financial statements can be found on pages 26 through 67 of this report.
Other information: In addition to the basic financial statements and accompanying notes, this
report also presents certain required supplementary information concerning the City's General Fund
budgetary comparison schedule to demonstrate compliance with the budget. Required
supplementary information can be found on pages 68 through 76 of this report.
Government -wide Financial Analysis
Summary of net position: As noted earlier, net position may serve over time as a useful indicator
of a government's financial position. There are six basic transactions that will affect the
comparability of the Statement of Net Position summary presentation as reflected below:
1) Net results of activities will impact (increase/decrease) current assets and
unrestricted net position.
2) Borrowing for capital needs will increase current assets and long-term debt.
3) Spending borrowed proceeds on new capital will reduce current assets and
increase capital assets. There is a second impact: an increase in invested in
capital assets and an increase in related debt will not change the net investment
in capital assets.
4) Spending of non -borrowed current assets on new capital will reduce current
assets, increase capital assets, reduce unrestricted net position, and increase net
investment 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.
6) Reduction of capital assets through depreciation will reduce capital assets and
net investment in capital assets.
City of Sunny Isles Beach, Florida
Management's Discussion and Analysis
September 30, 2023
The following schedule is a summary of the fiscal year 2023 statement of net position found on
page 17 with comparative information for fiscal year 2022.
City of Sunny Isles Beach, Florida
Summary of Net Position
As of September 30, 2023 and 2022
(In Thousands)
The overall position of the City improved in both the 2023 and 2022 fiscal years. Changes in net
position over time can be one of the best and most useful indicators of the financial position. The
total net position of the City increased by $6.1 or approximately 1.9 % from $323.1 in 2022 to
$329.2 in 2023. The increase in net position was primarily a result of the acquisition of capital assets
in governmental activities.
At the end of the fiscal year, the City reported positive balances in all categories of net position for
both governmental and business -type activities.
By far, the largest portion of the City's net position (78.1%) reflects in its net investment in capital
assets (such as land, building, machinery, and equipment) less any related outstanding debt,
retainage/accounts payable and the deferred gain on refunding used to acquire those assets. The
City uses these capital assets to provide services to citizens; consequently, these assets are not
available for future spending. Although the City's capital assets are reported net of related debt, it
should be noted that the resources needed to repay this debt must be provided from other sources,
since the capital assets themselves cannot be used to liquidate these liabilities.
2
Governmental Activities
Business -type Activities
Total Primary Government
2023
2022
2023
2022
2023
2022
Assets
Current assets
$ 162,108
$ 141,473
$ 2,737
$ 2,216
$ 164,845
$ 143,689
Capital assets
255,055
251,493
14,530
14,793
269,585
266,286
Total Assets
417,163
392,966
17,267
17,009
434,430
409,975
Total Deferred Outflows of Resources
9,650
7,927
98
77
9,748
8,004
Liabilities
Lomg-term liabilities
54,074
45,956
401
319
54,475
46,275
Other liabilities
7,405
13,358
46
277
7,451
13,635
Total Liabilities
61,479
59,314
447
596
61,926
59,910
Total Deferred Inflows of Resources
52,934
34,906
46
31
52,980
34,937
Net Position
Net investment in capital assets
242,686
237,385
14,530
14,552
257,216
251,937
Restricted
14,474
17,563
--
-
14,474
17,563
Unrestricted
55,240
51,725
2,342
1,907
57,582
53,632
Total Net Position
$ 312,400
$ 306,673
$ 16,872
$ 16,459
$ 329,272
$ 323,132
The overall position of the City improved in both the 2023 and 2022 fiscal years. Changes in net
position over time can be one of the best and most useful indicators of the financial position. The
total net position of the City increased by $6.1 or approximately 1.9 % from $323.1 in 2022 to
$329.2 in 2023. The increase in net position was primarily a result of the acquisition of capital assets
in governmental activities.
At the end of the fiscal year, the City reported positive balances in all categories of net position for
both governmental and business -type activities.
By far, the largest portion of the City's net position (78.1%) reflects in its net investment in capital
assets (such as land, building, machinery, and equipment) less any related outstanding debt,
retainage/accounts payable and the deferred gain on refunding used to acquire those assets. The
City uses these capital assets to provide services to citizens; consequently, these assets are not
available for future spending. Although the City's capital assets are reported net of related debt, it
should be noted that the resources needed to repay this debt must be provided from other sources,
since the capital assets themselves cannot be used to liquidate these liabilities.
2
City of Sunny Isles Beach, Florida
Management's Discussion and Analysis
September 30, 2023
An additional portion of the City's net assets (4.4%) represents resources that are subject to external
restrictions on how they may be used. The balance in restricted net position reflects a net decrease
of $3.0 from $17.5 in 2022 to $14.5 in 2023.
The fiscal year 2023 balance in unrestricted net position of $57.6 increased by $4.0 or 7.4% from
the prior year. This increase is primarily due to the increase in investment income. The balance in
the unrestricted net position represents resources that may be used to meet the City's ongoing
obligations to its citizens and creditors.
Summary of changes in net position: The following information is presented to assist the reader
in understanding the different types of normal impacts that can affect revenues:
1) Economic Condition can reflect a declining, stable, or growing environment and has
an impact on property taxes, non -ad valorem assessments and sales, gas, or other tax
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
(millage, stormwater, permitting, impact fees, user fees, etc.).
3) Changing patterns in intergovernmental and grant revenues (both recurring and
non-recurring) can change and impact the annual comparisons.
4) Market impacts on investment income may cause investment revenues recorded to
fluctuate from the prior year.
Basic impacts on revenues/expenses are outlined below:
1) Introduction of new programs can have an impact on property taxes, non -ad
valorem assessments and sales, gas, or other tax revenues as well as consumer
spending habits as it relates to building permits, user fees, and other consumption
revenues.
2) Changes in service demand levels can cause the City to increase or decrease authorized
staffing.
3) Salary increases such as cost of living, performance increases and pension con-
tributions can impact personnel service costs.
4) While inflation has declined in the past year, the City is a major consumer of certain
commodities such as chemicals, supplies, fuels, parts, and materials. Some functional
expenses may experience unusual commodity specific increases, such as gasoline,
supplies, and materials. In addition, supply chain issues and high demand due to
product delays may cause substantial price increases.
10
City of Sunny Isles Beach, Florida
Management's Discussion and Analysis
September 30, 2023
The following schedule is a summary of the fiscal year 2023 statement of activities found on page 18
with comparative information for fiscal year 2022.
Revenues:
Program revenue:
Charges for services
Operating grants and contributions
General revenues:
Property taxes
Utility taxes
Franchise taxes
Intergovernmental
Investment income (loss)
Impact fees
Gain on sale ofcapital assets
Miscellaneous
Total Revenues
Expenses:
General govemement
Public safety
Physical environment
Culture and human services
Transportation
Interest on long-term debt
Stormwater
Total Expenses
Change in Net Position
Net Position -Beginning
Net Position -Ending
City of Sunny Isles Beach, Florida
Statement of Activities
(In Thousands)
Governmental
Activities
Business -type Activities
Total Primary
Government
2023
2022
2023
2022
2023
2022
$ 12,823
$ 15,064
$ 1,308
$ 1,176
$ 14,131
$ 16,240
6,241
7,219
-
6,241
7,219
26,376
25,100
-
--
26,376
25,100
6,054
5,403
-
6,054
5,403
3,780
3,340
-
-
3,780
3,340
3,606
3,622
88
86
3,694
3,708
3,295
(1,746)
61
(30)
3,356
(1,776)
13
12
--
--
13
12
27
15
-
-
27
15
406
544
--
--
406
544
62,621
58,573
1,457
1,232
64,078
59,805
13,833
11,475
-
--
13,833
11,475
20,977
15,377
-
20,977
15,377
8,379
8,379
--
--
8,379
8,379
10,419
10,420
-
--
10,419
10,420
2,835
2,372
-
2,835
2,372
451
529
-
--
451
529
-
-
1,044
917
1,044
917
56,894
48,552
1,044
917
57,938
49,469
5,727
10,021
413
315
6,140
10,336
306,673
296,652
16,459
16,144
323,132
312,796
$ 312,400
$ 306,673
$ 16,872
$ 16,459
$ 329,272
$ 323,132
Governmental activities: Governmental activities increased the City's net position by $5.7 in 2023
from an increase of $10.0 in 2022, thereby accounting for 93.3% of the total growth in the net
position of the City. Total governmental revenues increased by 6.9% or $4.0 from the prior year and
total expenses increased by 17.2% or $8.3 from the prior year. Key elements of the change in the
net position increase from prior year are as follows:
• Investment Income, Property Taxes, and Utility and Franchise Taxes increased by
$5.0, $1.3, and $1.0, respectively. This was due to an increase in the interest rate yield
and receipt of additional taxes from newly constructed residential properties.
• Charges for Services, Operating Grants & Contributions, and Miscellaneous
decreased by $2.2, $1.0, and $0.1, respectively. The Charges for Services decrease
was due to the reduction of transfer development rights fees from developers and the
Operating Grants & Contributions decrease was due to the reduction in the remaining
federal funds from the American Rescue Plan Act (ABPA).
11
City of Sunny Isles Beach, Florida
Management's Discussion and Analysis
September 30, 2023
• General Government, Public Safety, and Transportation expenses increased by $2.3,
$5.6, and $0.4, respectively.
Governmental revenues increased from $58.6 to $62.6. 42.1% of these revenues received come
from property taxes, 20.5% from charges for services, 15.7% from utility and franchise taxes, 10.0%
from operating grants & contributions, 5.8% from intergovernmental, 5.3% from investment
income, and 0.6% from miscellaneous. Chart 1 compares program revenues to program expenses
for each category of activities. The cost of all governmental activities this year was $56.9. Some of
that cost was financed by:
• Those who directly benefited from the programs through charges for services ($12.8), and
• Other governments and organizations that subsidized certain programs through operating
grants and contributions ($6.2)
The City financed the remaining $37.9 "public benefit" portion of governmental activities with taxes
(property taxes, utility taxes, and franchise fees) and intergovernmental revenues.
EXPENSES AND PROGRAM REVENUES
GOVERNMENTAL ACTIVITIES
25,000
® Expenses ■ Program revenues
Public safety
Business -type Activities - Business -type activities increased the City's net position by $0.4 thereby
accounting for 6.7% of the total increase in the government's net position. Revenues of the City's
business -type activities increased by 18.3% from the previous year; $1.23 to $1.46, and expenses
increased by 13.8% from the previous year; $0.92 to $1.04. Factors contributing to these results
included:
• Stormwater fees, intergovernmental revenues and investment income increased by
$0.13, $0.02, and $0.09, respectively.
• Stormwater personnel expenses and operating expenses increased by $0.10 and $0.02,
respectively.
12
20,000
c
m
0
15,000
;a
o
c
+n
10,000
a
5,000.E
General government
® Expenses ■ Program revenues
Public safety
Business -type Activities - Business -type activities increased the City's net position by $0.4 thereby
accounting for 6.7% of the total increase in the government's net position. Revenues of the City's
business -type activities increased by 18.3% from the previous year; $1.23 to $1.46, and expenses
increased by 13.8% from the previous year; $0.92 to $1.04. Factors contributing to these results
included:
• Stormwater fees, intergovernmental revenues and investment income increased by
$0.13, $0.02, and $0.09, respectively.
• Stormwater personnel expenses and operating expenses increased by $0.10 and $0.02,
respectively.
12
City of Sunny Isles Beach, Florida
Management's Discussion and Analysis
September 30, 2023
Financial Analysis of the City's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance -
related legal requirements.
Governmental Funds
The fund financial statements for the governmental funds are provided on pages 19 through 22. 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's
financing requirements. Unassigned fund balance may serve as a useful measure of a government's
net resources available for spending at the end of the fiscal year. The major funds are explained
below.
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the
unassigned fund balance of the General Fund was $55.6. As a measure of the General Fund's
liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total
fund expenditures and other financing sources (uses). Unassigned fund balance represents 145.5%
of total General Fund expenditures and other financing sources (uses), while total fund balance
represents 199.8% of the same amount.
The fund balance of the City's General Fund increased $14.8 during the current fiscal year. When
comparing this to the previous year's fund balance increase of $11.3, this was due to a $7.0 increase
in total revenues and $3.5 increase in total expenditures and other financing sources (uses).
Contributing factors to the increase in revenues include $3.3 for investment income due to favorable
interest rates, $1.6 for charges for services primarily due to special duty, recreation programs, and
lease revenues, $1.3 for property taxes due to an increase in the tax base from new residential
developments and real estate values, $1.1 for utility taxes and franchise fees due to new residential
developments. These increases were offset by reductions of $0.1 for intergovernmental, fines and
forfeitures, and miscellaneous, respectively. The increase in total expenditures is the result of an
increase in capital outlay of $1.5 due to supply chain issues and delays that caused capital outlay to
be much lower than anticipated in the previous year and $1.4 for subscription acquisitions due to
the implementation of the Governmental Accounting Standards Board ("GASB") Statement No. 96,
Subscription -based IT arrangements ("GASB 96").
The ARPA fund was created because of the American Rescue Plan Act of 2021 and reflects a
minimal ending fund balance of $0.01 due to funds received from the Coronavirus State Fiscal
Recovery Fund for the motor fuel tax relief act of 2022.
The General Capital Projects Fund had a decrease of $5.7 in the fund balance. When comparing this
to the previous year's fund balance decrease of $17.1, this was attributed to a decrease of $3.6 in
revenues due to lower transfer development rights fees being received and a decrease of $14.0 in
capital expenditures due to the timing of projects. These decreases were offset by higher investment
income of $1.0 due to favorable interest rates.
The Law Enforcement Fund has a total fund balance of $4.0 in which most of it is held in cash and
investments. The decrease in fund balance of $1.4 is primarily due to capital outlay.
13
City of Sunny Isles Beach, Florida
Management's Discussion and Analysis
September 30, 2023
Proprietary Funds
The City's proprietary funds provide the same type of information found in the government -wide
financial statements, but in more detail.
The unrestricted net position of the City's proprietary fund as of the fiscal year end is $2.3. The total
increase in net position was $0.4. Other factors concerning the finances of this fund have already
been addressed in the discussion of the City's business -type activities.
General Fund Budgetary Highlights
During the year, utility taxes increased by $0.6, charges for services increased by $0.2, and
investment income increased by $1.5 between the original and final amended budget. This was to
reflect the change in revenue from new residential developments and favorable interest rates. For
expenditures, there was a $1.6 decrease between the original and final amended budget. This was
due to a decrease in departmental expenditures of $2.1 for community services offset by an increase
in departmental expenditures of $0.5 for public safety. For other financing sources (uses), there was
a $3.9 decrease between original and final amended budget due to an increase in transfers out of
$2.1 and decrease in transfers in of $4.5 offset by an increase in appropriations of prior year reserves
of $2.7.
Capital Asset and Debt Administration
Capital Assets: The City's investment in capital assets for its governmental and business -type
activities as of September 30, 2023 amounts to $ 269.6 (net of accumulated depreciation and
amortization). This investment in capital assets includes land, buildings, machinery and equipment,
park facilities, improvements, leases, and subscriptions (right -of -use assets). There was an increase
of $3.2 in the City's investment in capital assets for the current fiscal year (a 1.4% increase in
governmental activities and a 1.8% decrease in business -type activities).
City of Sunny Isles Beach
Capital Assets, Net of De pre ciation/Amortization
(In Thousands)
14
Governmental Activities
Business -Type
Activities
Total
2023
2022
2023
2022
2023
2022
Land
$ 96,985
$ 96,985
$ --
$ --
$ 96,985 $
96,985
Easements
488
488
-
--
488
488
Buildings
35,796
37,185
--
--
35,796
37,185
Improvements
2,989
2,897
-
--
2,989
2,897
Machinery and Equipment
3,740
2,630
86
90
3,826
2,720
hifrastucture
72,234
74,101
13,662
14,081
85,896
88,182
Lease (right -to -use asset)
59
59
--
-
59
59
Subscription (right -to -use asset)
1,133
-
--
--
1,133
--
Construction in progress
41,630
37,148
782
622
42,412
37,770
Totals
$ 255,054
$ 251,493
$ 14,530
$ 14,793
$ 269,584 $
266,286
14
City of Sunny Isles Beach, Florida
Management's Discussion and Analysis
September 30, 2023
For governmental activities, this year's major capital asset additions before depreciation and
amortization totaled $9.9 and include the following:
• $4.5 in new construction in progress, which relates to projects started in the City, but
not yet completed, such as the City-wide utility undergrounding, drainage projects
and park and pier improvements and $1.5 for other infrastructure.
• $2.5 in equipment, which relates to $0.5 for the City-wide license plate readers,
security cameras and other public safety equipment, $0.1 for artwork, $1.7 for the
purchase of 24 city vehicles, which includes 5 utility vehicles, 2 buses and 2 boats,
and $0.2 for computer and playground equipment.
• $1.5 in subscription (right -to -use assets) related to the implementation of GASB 96.
For governmental activities, this year's major capital asset disposals consisted of vehicles and
equipment that were removed or replaced that have a minimal carrying value.
For business -type activities, this year's major capital asset additions before depreciation totaled $0.2
and include the following:
• $0.2 in new construction in progress, which relates to the Golden Shores Utility
Undergrounding and Drainage project.
Additional information on the City's capital assets can be found in Note 4 on pages 43 and 44 of
this report.
Long -Term Debt: At the end of the current fiscal year, the City had bonded debt outstanding of
$3.0, notes payable in the amount of $7.8, and combined lease and subscription (right -of -use assets)
related debt of $1.1, for a total long-term debt of $11.9.
The City's total debt decreased by $2.1 (15.1%) during the current fiscal year. The reason for the
decrease was a result of the normal debt service requirements reducing the liability.
Additional information on the City's long-term debt can be found in Note 6 on pages 45 through 50
of this report.
15
City of Sunny Isles Beach
Revenue Notes and Other Debt
(In Thousands)
Governmental Activities Business -type Activities
Total Primary
Government
2023
2022 2023 2022
2023
2022
Revenue notes (backed by specific
tax and fee revenues)
$ 3,020
$ 4,831 $ $ 241
$ 3,020
$ 5,072
Notes payable
7,801
8,925 -
7,801
8,925
Lease (right -to -use asset)
59
59 -
59
59
Subscriptions (right -to -use asset)
1,054
--
1,054
--
Totals
$ 11,934
$ 13,815 $ - $ 241
$ 11,934
$ 14,056
The City's total debt decreased by $2.1 (15.1%) during the current fiscal year. The reason for the
decrease was a result of the normal debt service requirements reducing the liability.
Additional information on the City's long-term debt can be found in Note 6 on pages 45 through 50
of this report.
15
City of Sunny Isles Beach, Florida
Management's Discussion and Analysis
September 30, 2023
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 the
State operates primarily using sales, gasoline, and corporate income taxes. Local governments
(cities, counties, and school boards) primarily rely on property and a limited array of permitted other
taxes (sales, communication, gasoline, utilities services, etc.) and fees (franchise, building permits,
recreation, etc.) for their governmental activities. There are a limited number of state -shared
revenues and recurring and non-recurring (one-time) grants from both the state and federal
governments. For the business -type and certain governmental activities (stormwater fees, building
inspections, recreation programs, etc.) the user pays a related fee or charge associated with the
service. The related fees for these activities remained the same for fiscal year 2024.
The unassigned fund balance in the General Fund totals $55.6. In addition, $9.4 has been assigned
for a Contingency/Fiscal stability reserve which reflects the City's planned goal of 25% of General
Fund operating expenditures as of September 30, 2017.
Reappropriations will occur for those purchase orders issued in fiscal year 2023 for which no
delivery or payment occurred by September 30, 2023.
In fiscal year 2024, the City's property tax millage rate was reduced to 1.900 mils. This property
tax millage rate is calculated 6.81% above the 2023 rollback millage rate of 1.7789 but is still
expected to generate more property tax revenue compared to the prior year due to increased property
values.
The City continuously evaluates current and potential legislative issues to reduce fiscal impact on
the City. Over the past couple of years, the Legislature has sought to reduce the revenues of the
local governments while passing laws that are generally unfunded mandates.
All these factors were considered in preparing the City's budget for the 2024 fiscal year.
Request for Information
This financial report is designed to provide a general overview of the City's finances for all those
with an interest in the City's finances. Questions concerning any of the information provided in this
report or requests for additional financial information should be addressed 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 at www.sibfl.net.
BASIC FINANCIAL STATEMENTS
CITY OF SUNNY ISLES BEACH, FLORIDA
Assets:
Cash and cash equivalents
Investments
Receivables, net
Lease receivable
Interest receivable
Inventory
Prepaids
Capital assets not being depreciated
Capital assets being depreciated/amortized, net
Total Assets
Deferred Outflows of Resources:
Deferred outflows related to pensions
Deferred outflows related to OPEB
Total Deferred Outflows of Resources
Liabilities:
Accounts payable
Accrued liabilities
Accrued interest payable
Unearned revenue
Noncurrent liabilities:
Due within one year:
Compensated absences
Bonds and notes
Leases (right -to -use assets;
Subscriptions (right -to -use assets)
Due in more than one year:
Compensated absences
Bonds and notes
Leases (right -to -use assets,
Subscriptions (right -to -use assets)
Net pension liability
Total OPEB liability
Total Liabilities
Deferred Inflows of Resources:
Deferred inflows related to pensions
Deferred inflows related to OPEB
Deferred inflows related to lease
Deferred inflows related to debt refunding
Total Deferred Inflows of Resources
Net Position:
Net investment in capital assets
Restricted for:
American Rescue Plan
Law enforcement
Building
Public art
Transportation
Unrestricted
Total Net Position
STATEMENT OF NET POSITION
SEPTEMBER 30, 2023
1,995,123
2,417,035
117,538
2,875,253
501,907
1,899,259
25,104
354,967
4,517,159
8,920,979
34,602
699,145
33,404,301
3,716,569
61,478,941
1,298,101
3,137,676
48,490,426
7,710
52,933,913
242,685,854
14,598
4,045,787
7,286,493
1,376,685
1,749,957
55,240,219
$ 312,399,593
32,273
13,114
2,511
22,603
337,417
38,986
446,904
2,027,396
2,430,149
117,538
2,875,253
504,418
1,899,259
25,104
354,967
4,539,762
8,920,979
34,602
699,145
33,741,718
3,755,555
61,925,845
13,112 1,311,213
32,914 3,170,590
-- 48,490,426
7,710
46,026 52,979,939
14,529,659
2,342,151
$ 16,871,810
257,215,513
14,598
4,045,787
7,286,493
1,376,685
1,749,957
57,582,370
$ 329,271,403
The accompanying notes to basic financial statements are an integral part of these statements.
17
Business -
Governmental
Type
Activities
Activities
Total
$ 61,455,974 $
1,475,387 $
62,931,361
46,173,723
1,128,718
47,302,441
2,700,779
126,822
2,827,601
50,184,823
--
50,184,823
261,212
6,271
267,483
6,760
--
6,760
1,324,637
--
1,324,637
139,103,257
781,994
139,885,251
115,951,739
13,747,665
129,699,404
417,162,904
17,266,857
434,429,761
8,586,989
86,737
8,673,726
1,062,554
11,146
1,073,700
9,649,543
97,883
9,747,426
1,995,123
2,417,035
117,538
2,875,253
501,907
1,899,259
25,104
354,967
4,517,159
8,920,979
34,602
699,145
33,404,301
3,716,569
61,478,941
1,298,101
3,137,676
48,490,426
7,710
52,933,913
242,685,854
14,598
4,045,787
7,286,493
1,376,685
1,749,957
55,240,219
$ 312,399,593
32,273
13,114
2,511
22,603
337,417
38,986
446,904
2,027,396
2,430,149
117,538
2,875,253
504,418
1,899,259
25,104
354,967
4,539,762
8,920,979
34,602
699,145
33,741,718
3,755,555
61,925,845
13,112 1,311,213
32,914 3,170,590
-- 48,490,426
7,710
46,026 52,979,939
14,529,659
2,342,151
$ 16,871,810
257,215,513
14,598
4,045,787
7,286,493
1,376,685
1,749,957
57,582,370
$ 329,271,403
The accompanying notes to basic financial statements are an integral part of these statements.
17
CITY OF SUNNY ISLES BEACH, FLORIDA
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
The accompanying notes to basic financial statements are an integral part of these statements.
18
Net Revenue (Expense) and
Program Revenues
Changes in Net Position
Charges
Operating Capital
Business -
for
Grants and Grants and
Governmental
Type
Expenses
Services
Contributions Contributions
Activities
Activities
Total
Functions/Programs:
Governmental Activities:
General government
$ 13,833,399
$ 9,773,837
$ 4,574,905 $
$ 515,343
$
$ 515,343
Public safety
20,977,245
1,977,237
48,516
(18,951,492)
(18,951,492)
Physical environment
8,378,702
--
--
(8,378,702)
(8,378,702)
Cultural and human services
10,419,302
1,071,350
--
(9,347,952)
(9,347,952)
Transportation
2,834,818
--
1,617,926
(1,216,892)
(1,216,892)
Interest on long-term debt
450,849
(450,849)
(450,849)
Total Governmental Activities
56,894,316
12,822,424
6,241,347
(37,830,545)
(37,830,545)
Business -Type Activities:
Stormwater
1,044,307
1,308,002
263,695
263,695
Total Business -Type Activities
1,044,307
1,308,002
--
263,695
263,695
Total Primary Government
$ 57,938,623
$ 14,130,426
$ 6,241,347 $
(37,830,545)
263,695
(37,566,850)
General revenues:
Property taxes
26,375,504
--
26,375,504
Utility taxes
6,054,242
6,054,242
Franchise taxes on gross receipts
3,780,100
--
3,780,100
Intergovernmental, unrestricted
3,605,819
87,569
3,693,388
Investment income
3,295,486
61,199
3,356,685
Impact fees
13,224
--
13,224
Gain on sale of capital assets
26,973
26,973
Miscellaneous
405,537
405,537
Total General Revenues
43,556,885
148,768
43,705,653
Change in Net Position
5,726,340
412,463
6,138,803
Net Position - Beginning
306,673,253
16,459,347
323,132,600
Net Position - Ending
$ 312,399,593
$ 16,871,810
$ 329,271,403
The accompanying notes to basic financial statements are an integral part of these statements.
18
CITY OF SUNNY ISLES BEACH, FLORIDA
BALANCE SHEET - GOVERNMENTAL FUNDS
SEPTEMBER 30, 2023
The accompanying notes to basic financial statements are an integral part of these statements.
19
American
General
Law
Rescue
Capital
Enforcement
Nonmajor
Total
General
Plan
Projects
Trust
Governmental
Governmental
Fund
Fund
Fund
Fund
Funds
Funds
Assets:
Cash and cash equivalents
$ 41,702,735
$ 914,598
$ 9,213,010
$ 2,580,019
$ 7,045,612
$ 61,455,974
Investments
32,384,771
-
6,578,591
1,883,442
5,326,919
46,173,723
Inventory
--
-
-
--
6,760
6,760
Receivables, net
2,025,285
299,181
376,313
2,700,779
Lease receivable
50,184,823
--
--
--
50,184,823
Interest receivable
181,139
39,160
10,966
29,947
261,212
Prepaids
1,323,047
--
--
1,350
240
1,324,637
Total Assets
$ 127,801,800
$ 914,598
$ 16,129,942
$ 4,475,777
$ 12,785,791
$ 162,107,908
Liabilities:
Accounts payable
$ 1,111,081
$ -
$ 139,201
$ 428,640
$ 316,201
$ 1,995,123
Accrued liabilities
1,764,356
--
427,266
0
225,413
2,417,035
Unearned revenue
28,819
900,000
288,113
1,658,321
2,875,253
Total Liabilities
2,904,256
900,000
854,580
428,640
2,199,935
7,287,411
Deferred Inflows of Resources:
Leases
48,490,426
--
-
--
--
48,490,426
Unavailable revenue - taxes
--
-
165,721
165,721
Total Deferred Inflows of Resources
48,490,426
165,721
48,656,147
Fund Balances:
Nonspendable:
Inventory
--
-
-
--
6,760
6,760
Prepaids
1,323,047
-
-
1,350
240
1,324,637
Restricted for:
American rescue plan
--
14,598
-
--
--
14,598
Law enforcement
-
-
4,045,787
--
4,045,787
Building
-
-
--
7,286,493
7,286,493
Public art
1,376,685
1,376,685
Transportation
--
-
1,749,957
1,749,957
Committed to:
Hurricane/emergency and disaster
Recovery operating reserves
10,000,000
-
--
10,000,000
Assigned to:
Capital projects
--
-
15,275,362
15,275,362
Fiscal stability reserve
9,435,751
-
-
9,435,751
Unassigned:
General Fund
55,648,320
55,648,320
Total Fund Balances
76,407,118
14,598
15,275,362
4,047,137
10,420,135
106,164,350
Total Liabilities and Fund Balances
$ 127,801,800
$ 914,598
$ 16,129,942
$ 4,475,777
$ 12,785,791
$ 162,107,908
The accompanying notes to basic financial statements are an integral part of these statements.
19
CITY OF SUNNY ISLES BEACH, FLORIDA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2023
Fund Balances - Total Governmental Funds $ 106,164,350
Amounts reported for governmental activities in the statement
of net position are different as a result of:
Capital assets used in governmental activities are not
available, spendable resources and, therefore, are not reported
in the governmental funds:
Governmental capital assets $ 314,368,404
Less accumulated depreciation/amortization (59,313,408) 255,054,996
Deferred outflows/inflows of resources related to
defined benefit pension, OPEB plan, and debt refunding
are reported in the statement of net position but are not
reported in the governmental funds:
Deferred inflows related to debt refunding (7,710)
Deferred outflows related to OPEB 1,062,554
Deferred inflows related to OPEB (3,137,676)
Deferred outflows related to pension 8,586,989
Deferred inflows related to pension (1,298,101) 5,206,056
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
(10,820,238)
Accrued interest payable on long-term debt
(117,538)
Total OPEB liability
(3,716,569)
Net pension liability
(33,404,301)
Leases (Right -of -use assets) acquired
(59,706)
Subscriptions (Right -of -use assets) acquired
(1,054,112)
Compensated absences
(5,019,066) (54,191,530)
Certain revenues are considered deferred inflows in the
governmental funds due to the availability of the funds;
under full accrual accounting they are considered revenues. 165,721
Net Position of Governmental Activities $ 312,399,593
The accompanying notes to basic financial statements are an integral part of these statements.
20
CITY OF SUNNY ISLES BEACH, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
Revenues:
Real and personal property taxes
Utility taxes
Franchise fees
Intergovernmental
Licenses and permits
Charges for services
Fines and forfeitures
Investment income
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Physical environment
Cultural and human services
Transportation
Capital outlay
Debt service:
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses):
Proceeds from sale of capital assets
Insurance recoveries
Lease (right -of -use asset) acquired
Subscription acquired
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances - Beginning
Fund Balances - Ending
American
General
Law
Rescue
Capital
Enforcement Nonmajor Total
General Plan
Projects
Trust Governmental Governmental
Fund Fund
Fund
Fund Funds Funds
$ 26,375,504 $
$
$
$
$
26,375,504
6,054,242
28,897
--
6,054,242
3,780,100
65,214
130,061
28,667
3,780,100
3,261,743
4,574,905
--
1,796,281
9,632,929
823,278
--
21,072
3,131,901
3,955,179
7,737,976
313,774
608,477
39,956
8,091,706
934,334
(108,477)
--
48,516
--
982,850
2,274,472
-- 108,477
523,166
142,700
355,148
3,295,486
209,935
24,000
340
4,234
238,509
51,451,584
4,574,905
860,940
191,556
5,327,520
62,406,505
7,625,100
8,879
--
--
4,307,596
11,941,575
16,148,802
659,387
$ 10,420,135
189,153
--
16,997,342
2,731,731
1,677,386
--
--
4,409,117
5,578,466
1,612,615
11,701
7,202,782
--
--
--
2,346,493
2,346,493
1,831,052
602,040
6,681,838
1,455,758
783,951
11,354,639
3,346,107 5,090 3,351,197
481,747 -- 594 482,341
37,743,005 4,560,307 6,681,838 1,644,911 7,455,425 58,085,486
13,708,579
14,598 (5,820,898)
(1,453,355)
(2,127,905)
4,321,019
28,897
--
27,167
9,150
65,214
130,061
28,667
--
158,728
22,648
--
--
22,648
1,425,425
--
21,072
1,446,497
--
108,477
500,000
608,477
(500,000)
(108,477)
(608,477)
1,107,031
-- 108,477
55,834
421,745
1,693,087
14,815,610
14,598 (5,712,421)
(1,397,521)
(1,706,160)
6,014,106
61,591,508
-- 20,987,783
5,444,658
12,126,295
100,150,244
$ 76,407,118 $
14,598 $ 15,275,362
$ 4,047,137
$ 10,420,135
$ 106,164,350
The accompanying notes to basic financial statements are an integral part of these statements.
21
CITY OF SUNNY ISLES BEACH, FLORIDA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
Net Change in Governmental Funds $ 6,014,106
Amounts reported for governmental activities in the statement
of activities are different because:
Governmental funds report capital outlays as expenditures. However, in
the statement of activities, the cost of those assets are depreciated/amortized
over their estimated useful lives.
Capital outlay $ 11,354,639
Capital outlay which did not meet the threshold for capitalization (698,799)
Loss of disposal in construction in progress (137,565)
Net book value of asset disposals (38,241)
Less depreciation/amortization expense (6,917,866) 3,562,168
The issuance of long-term debt (e.g., bonds and notes, leases, etc.) provides
current financial resources to governmental funds, while repayment of
the principal of long-term debt consumes the current financial resources
of governmental funds. Neither transaction has any effect on net position.
Also, governmental funds report the effect of premiums, discounts
and similar items when debt is first issued, whereas those amounts are
deferred and amortized in the statement of activities.
Principal payments
2,936,679
Leases (Right -of -use assets)
(22,648)
Leases (Right -of -use assets) payments
22,133
Subscriptions (Right -of -use assets)
(1,446,497)
Subscriptions (Right -of -use assets) payments
392,385
Amortization of deferred gain on refunding
56,758 1,938,810
Some expenses reported in the statement of activities are not reported in
the governmental funds because they have no effect on current
financial resources.
Accrued interest payable
31,492
Net pension liability
(5,259,982)
Total OPEB liability
(12,834)
Compensated absences
(575,870) (5,817,194)
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the governmental funds. 28,450
Change in Net Position of Governmental Activities $ 5,726,340
The accompanying notes to basic financial statements are an integral part of these statements.
22
CITY OF SUNNY ISLES BEACH, FLORIDA
STATEMENT OF NET POSITION -
PROPRIETARY FUND
SEPTEMBER 30, 2023
Noncurrent assets:
Stormwater
Capital assets not being depreciated
Fund
Assets:
13,747,665
Current assets:
14,529,659
Cash and cash equivalents
$ 1,475,387
Investments
1,128,718
Accounts receivable, net
126,822
Interest receivable
6,271
Total Current Assets
2,737,198
Noncurrent assets:
Capital assets not being depreciated
781,994
Capital assets, net of accumulated depreciation
13,747,665
Total Noncurrent Assets
14,529,659
Total Assets
17,266,857
Deferred Outflows of Resources:
446,904
Deferred outflows related to pensions
86,737
Deferred outflows related to OPEB
11,146
Total Deferred Outflows of Resources
97,883
Liabilities:
46,026
Current liabilities:
Accounts payable
32,273
Accrued liabilities
13,114
Compensated absences, current portion
2,511
Total Current Liabilities
47,898
Noncurrent liabilities:
Compensated absences
22,603
Total OPEB Liability
38,986
Net pension liability
337,417
Total Noncurrent Liabilities
399,006
Total Liabilities
446,904
Deferred Inflows of Resources:
Deferred inflows related to pensions
13,112
Deferred inflows related to OPEB
32,914
Total Deferred Inflows of Resources
46,026
Net Position:
Net investment in capital assets
14,529,659
Unrestricted
2,342,151
Total Net Position
$ 16,871,810
The accompanying notes to basic financial statements are an integral part of these statements.
23
CITY OF SUNNY ISLES BEACH, FLORIDA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION -
PROPRIETARY FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
The accompanying notes to basic financial statements are an integral part of these statements.
24
Stormwater
Fund
Operating revenues:
Charges for services
$ 1,308,002
Total Operating Revenues
1,308,002
Operating expenses:
Personnel services
373,821
Operating expenses
207,608
Depreciation
461,964
Total Operating Expenses
1,043,393
Operating Income
264,609
Non -Operating Revenues (Expenses):
Intergovernmental
87,569
Investment income
61,199
Interest expense
(914)
Total Non -Operating Revenues (Expenses)
147,854
Change in Net Position
412,463
Net position - Beginning
16,459,347
Net position - Ending
$ 16,871,810
The accompanying notes to basic financial statements are an integral part of these statements.
24
CITY OF SUNNY ISLES BEACH, FLORIDA
STATEMENT OF CASH FLOWS -
PROPRIETARY FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
Stormwater
Fund
Cash Flows from Operating Activities:
Cash received from customers and users $ 1,494,540
Cash paid to suppliers for goods and services (196,896)
Cash paid to employees for services (293,615)
Net Cash Provided by (Used in) Operating Activities
1,004,029
Cash Flows from Noncapital Financing Activities:
1,410,817
Intergovernmental
87,569
Net Cash Provided by (Used in) Noncapital Financing Activities
87,569
Cash Flows from Capital and Related Financing Activities:
$ 264,609
Interest paid on capital debt
(5,092)
Principal paid on capital debt
(241,224)
Acquisition and construction of capital assets
(198,323)
Net Cash Provided by (Used in) Capital and Related Financing Activities
(444,639)
Cash Flows from Investing Activities:
Unrealized loss on investments
61,199
Purchase of investments
(643,588)
Net Cash Provided by (Used in) Investing Activities
(582,389)
Net Increase in Cash and Cash Equivalents
64,570
Cash and Cash Equivalents - Beginning
1,410,817
Cash and Cash Equivalents - Ending
$ 1,475,387
Cash Flows from Operating Activities
Operating income
$ 264,609
Adjustments to Reconcile Operating Income to Net Cash
Provided by (used in) Operating Activities:
Depreciation
461,964
Changes in operating assets and liabilities and deferred inflows/outflows:
(Increase) decrease in:
Accounts receivable
190,960
Interest receivable
(4,422)
Deferred outflows related to pension
(18,623)
Deferred outflows related to OPEB
(1,882)
Increase (decrease)in:
Accounts payable
10,712
Accrued liabilities
4,466
Compensated absences
7,091
Net pension liability
74,429
Deferred inflows related to pension
(2,675)
Deferred inflows related to OPEB
18,028
Total OPEB liability
(628)
Net Cash Provided by (Used in) Operating Activities
$ 1,004,029
The accompanying notes to basic financial statements are an integral part of these statements.
25
NOTES TO BASIC FINANCIAL STATEMENTS
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Sunny Isles Beach, Florida (the "City") was incorporated on June 16, 1997.
The City operates under a Commission -Manager form of government and provides the
following services as authorized by its charter: public safety, highways and streets, culture
and recreation, public works and stormwater management. The basic financial statements of
the City have been prepared in accordance with accounting principles generally accepted in
the United States of America ("GAAP") as applied to governmental units. The
Governmental Accounting Standards Board ("GASB") is the accepted standard-setting
body for governmental accounting and financial reporting. The following is a summary of
the City's more significant policies.
A. FINANCIAL REPORTING ENTITY
The financial statements were prepared in accordance with Government Accounting
Standards, which establishes standards for defining and reporting on the financial reporting
entity. The definition of the financial reporting entity is based upon the concept that elected
officials are accountable to their constituents for their actions. One of the objectives of
financial reporting is to provide users of financial statements with a basis for assessing the
accountability of the elected officials. The financial reporting entity consists of the City,
organizations for which the City is financially accountable, and other organizations for
which the nature and significance of their relationship with the City are such that exclusion
would cause the reporting City's financial statements to be misleading or incomplete. The
City is financially accountable for a component unit if it appoints a voting majority of the
organization's governing board and it is able to impose its will on that organization or there
is a potential for the organization to provide specific financial benefits to, or impose
specific financial burdens on the City. Based upon the application of these criteria, there
were no organizations that met the criteria described above.
B. GOVERNMENT-WIDEAND FUND FINANCL4L STATEMENTS
The government -wide financial statements (i.e., the statement of net position and the
statement of activities) report information on all of the activities of the City. The effect of
interfund activity has been removed from these statements. Governmental activities, which
normally are supported by taxes and intergovernmental revenues, are reported separately
from business -type activities which rely to a significant extent on fees and charges for
support.
26
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. GOVERNMENT-WIDEAND FUND FINANCL4L STATEMENTS (CONTINUED)
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function or segment. Program revenues include
1) charges to customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function or segment, and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among program
revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and the proprietary fund.
Major individual governmental funds and the major individual enterprise fund are reported
as separate columns in the fund financial statements.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCL4L STATEMENT
PRESENTATION
The government -wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting as is used for the proprietary fund
financial statements. Revenues are recorded when earned and expenses are recorded when a
liability is incurred, regardless of the timing of related cash flows. Property taxes are
recognized as revenues in the year for which they are levied. Grants and similar items are
recognized as revenue as soon as all eligibility requirements imposed by the provider have
been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized
as soon as they are both measurable and available. Revenues are considered to be available
when they are collectible within the current period or soon enough thereafter to pay
liabilities of the current period. For this purpose, the City considers revenues to be available
if they are collected within 60 days of the current fiscal period end. Expenditures generally
are recorded when a liability is incurred, as under accrual accounting. However, debt
service expenditures, as well as expenditures related to compensated absences and claims
and judgments, are recorded only when payment is due.
Property taxes, franchise taxes, licenses and interest associated with the current fiscal
period are all considered to be susceptible to accrual and have been recognized as revenues
of the current fiscal period. Revenues for expenditure -driven grants are recognized when
the qualifying expenditures are incurred.
27
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCL4L STATEMENT
PRESENTATION (CONTINUED)
Revenues for building permits are recognized as the required inspections are completed, or
after the permit expires. Issued building permits requiring an inspection expire after 180
days of inactivity. All other revenue items are considered to be measurable and available
only when cash is received by the City.
The City reports the following major governmental funds:
• The General Fund is the City's primary operating fund. It accounts for all
financial resources of the general government, except those required to be
accounted for in another fund.
• The American Rescue Plan Fund is used to account for the restricted funds
provided by the American Rescue Plan Act of 2021, which were released by
the U.S. Department of Treasury.
• The General Capital Projects Fund accounts for the acquisition of equipment
and construction of major capital projects not being financed by proprietary
funds.
• The Law Enforcement Trust Fund is used to account for revenues received
from federal, state and local law enforcement forfeitures and seizures, which
are restricted for use for law enforcement purposes with no adopted budget.
The City reports the following major proprietary fund:
• The Stormwater Fund is used to account for the provision of stormwater
maintenance 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 government -
wide financial statements. Exceptions to this general rule are payments -in -lieu of taxes and
other 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 reported
for the various functions concerned.
28
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCL4L STATEMENT
PRESENTATION (CONTINUED)
Amounts reported as program revenues include 1) charges to customers or applicants for
goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital
grants and contributions. Internally dedicated resources are reported as general revenues
rather than as program revenues. Likewise, general revenues include all taxes, whose
purpose has not been restricted to a specific program.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing
and delivering goods in connection with a proprietary fund's principal ongoing operations.
The principal operating revenues of the Stormwater Fund are charges to business and
residential customers for stormwater system maintenance. Operating expenses report on the
costs to maintain the stormwater system, the cost of sales and services, administrative
expenses and depreciation on capital assets. All revenues and expenses not meeting this
definition 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 of
the Miami -Dade County Property Appraiser and Miami -Dade County Tax Collector. The
laws for the State regulating tax assessments are also designed to assure a consistent
property valuation method statewide.
State Statutes permit municipalities to levy property taxes at a rate of up to 10 mills ($10
per $1,000 of assessed taxable valuation). The millage rate assessed by the City for the
fiscal year ended September 30, 2023 was 2.0000 mills.
The tax levy of the City is established by the City Commission prior to October 1 each year,
and the County Property Appraiser incorporates the millage into the tax levy, which
includes 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 each year. Each
assessment roll is submitted to the Executive Director of the State Department of Revenue
for review to determine if the rolls meet all of the appropriate requirements of State
Statutes.
29
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. PROPERTY TAXES (CONTINUED)
All real and tangible personal property taxes become payable on November 1 each year or
as soon as practicable thereafter as the assessment roll is certified by the County Property
Appraiser. Miami -Dade County mails to each property owner on the assessment roll a
notice of the taxes due, and Miami -Dade County also collects the taxes for the City. Taxes
may be paid upon receipt of such notice from Miami -Dade County, with discounts at the
rate of four percent (4%) if paid in the month of November, three percent (3%) if paid in
the month 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 without
discount, and all unpaid taxes on real and tangible personal property become delinquent and
liens are placed on April I 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
in the Laws of Florida. There were no material delinquent property taxes at September 30,
2023.
E. DEPOSITS AND INVESTMENTS
Cash and cash equivalents include cash on hand, certificate of deposits and investments in
U.S. Government Agencies. Income from investments is recorded as earned.
The City considers all highly liquid investments with a maturity of three months or less
when purchased, to be cash 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 provided
by the City. Receivables are recorded and revenues are recognized as earned or as specific
program expenditures/expenses are incurred based on the accounting basis required for that
fund. There were no allowances for uncollectible receivables.
30
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
G. LEASE RECEIVABLE
The City's lease receivable is measured at the present value of lease payments expected to
be received during the lease term. A deferred inflow of resources is recorded for the lease.
The deferred inflow of resources is recorded at the initiation of the lease in an amount equal
to the initial recording of the lease receivable. The deferred inflow of resources is amortized
on a straight-line basis over the term of the lease.
H. PREPAIDS
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both the government -wide and the fund financial statements.
The cost of prepaid items are recorded as expenditures/expenses when consumed rather
than when purchased.
L INVENTORY
All inventories are valued at cost. The costs of governmental fund -type inventories are
recorded as expenditures when purchased rather than when consumed.
J. INTERFUND RECEIVABLESAND PAYABLES
Activities between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as either "due to/from other funds"
(the current portion of interfund loans) or "advances to/from other funds" (the noncurrent
portions of interfund loans). Any residual balances outstanding between the governmental
activities and business activities are reported in the government -wide financial statements
as "internal balances."
K. CAPITAL ASSETS
Capital assets, which include property, land, equipment, infrastructure assets (e.g., roads,
bridges, sidewalks and similar items), intangible assets such as right -to -use assets (leases)
and subscription arrangements are reported in the applicable governmental or business -type
activities columns in the government -wide financial statements. Capital assets are defined
by the government as assets with an initial, individual cost of more than $5,000 and an
estimated useful life in excess of one year. Purchased or constructed assets are recorded at
historical cost or estimated historical cost if actual cost is not available. Donated capital
assets are recorded at acquisition value at the date of donation.
31
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
K. CAPITAL ASSETS (CONTINUED)
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets' lives are not capitalized. Major outlays for capital assets and
improvements are capitalized as projects are constructed.
Capital assets of the City are depreciated/amortized using the straight-line method over the
following estimated useful lives:
Capital Asset Classes
Buildings
Improvements
Machinery and equipment
Infrastructure
Leases (right -to -use assets)
Subscription (right -to -use assets)
Years
15 - 50 years
10 - 20 years
3 - 20 years
15 - 100 years
Through lease maturity
Through subscription maturity
The City reviews the carrying value of its long-lived assets to ensure that any impairment
issues are identified and appropriately reflected in the financial statements. Should the
expected cash flows be less than carrying value, an impairment loss would be recognized to
reduce the carrying value. There was no impairment loss recorded during the current fiscal
year.
L. LEASE (RIGHT-TO-USEAssm)
The leases (right -to -use assets) are initially measured at an amount equal to the initial
measurement of the related lease liability plus any lease payments made prior to the lease
term, less lease incentives, and plus ancillary charges necessary to place the lease into
service. The leases (right -to -use assets) are amortized on a straight-line basis over the life of
the related lease.
M. SUBSCRIPTION (RIGHT-TO-USEASSETS)
The subscription (right -to -use assets) are initially measured at an amount equal to the initial
measurement of the related subscription liability plus any subscription payments made prior
to the subscription term, less subscription incentives, plus any ancillary charges necessary
to place the subscription into service. The subscription (right -to -use assets) are amortized
on a straight-line basis over the life of the related contract.
32
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
N. COMPENSATED ABSENCES
The City's policy is to permit employees to accumulate earned but unused sick, as well as
vacation pay benefits, limited to certain maximums, based on length of service. For certain
employees, the City also grants compensatory time. All vacation, sick and compensatory
time is accrued when incurred in the government -wide and proprietary fund financial
statements. A liability for these amounts is reported in governmental funds only if they
have matured, for example, as a result of employee resignations and retirements.
O. LONG-TERM OBLIGATIONS
In the government -wide financial statements, long-term debt and other long-term obligations
are reported as liabilities in the applicable governmental activities or business -type activities.
Bond premiums and discounts are deferred and amortized over the life of the bonds using the
straight-line method, which doesn't significantly differ from the effective interest method.
Discounts and premiums on bonds payable are presented as an adjustment of the face amount
of bonds payable. Bond issuance costs are expensed as incurred.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing
sources, while discounts on debt issuances are reported as other financing uses. Bond
issuance costs are reported as expenditures at issuance.
P. DEFERRED OuTFLOWs/INFLOWs oFRESOURCEs
In addition to assets, the statement of net position will sometimes report a separate section
for deferred outflows of resources. This separate financial statement element, deferred
outflows of resources, represents a consumption of net assets that applies to a future
period(s) and so will not be recognized as an outflow of resources (expense/expenditure)
until then. The City has two items that qualify for reporting in this category as deferred
outflow of resources. An item related to the Employment Retirement System (Note 7) and
an item related to the Other Post -Employment Benefits (Note 8).
In addition to liabilities, the statement of net position will sometimes report a separate
section for deferred inflows of resources. This separate financial statement element,
deferred inflows of resources, represents an acquisition of net assets that applies to a future
period(s) and so will not be recognized as an inflow of resources (revenue) until then. The
City has five types of items that qualify for reporting in this category.
33
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
P. DEFERRED OUTFLOWS/INFLOWS OFRESOURCES (CONTINUED)
The first type arises only under a modified accrual basis of accounting. Accordingly, this
item, unavailable revenues, is reported only in the governmental funds balance sheet. The
governmental funds 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 the
amounts become available. The second item is a deferred charge on refunding reported in
the government -wide statement of net position. A deferred charge on refunding results from
the difference in the carrying value of refunded debt and its reacquisition price. This
amount is deferred and amortized over the shorter of the life of the refunded or refunding
debt. The third item is an item related to leases. The fourth and fifth item are items related
to the Employment Retirement System (Note 7) and the Other Post -Employment Benefits
(Note 8), respectively.
Q. NET POSITION
Net position in the government -wide and the proprietary fund are categorized as net
investment in capital assets; restricted or unrestricted. Net investment in capital assets is the
difference between the cost of capital assets, less accumulated depreciation/amortization,
reduced by the outstanding balances of any borrowings used for the acquisition,
construction or improvement of those assets, excluding unexpended proceeds, plus the net
effect of capital asset related deferred outflow/inflow of resources.
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 imposed
by law through constitutional provisions or enabling legislation. Unrestricted indicates that
portion 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 calculate the
amounts to report as restricted - net position and unrestricted - net position in the
government -wide and proprietary fund financial statements, a flow assumption must be
made about the order in which the resources are considered to be applied. It is the
government's policy to consider restricted - net position to have been depleted before
unrestricted - net position is applied.
34
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
R. FUND BALANCE
The City follows GASB Statement No. 54, Fund Balance Reporting and Governmental
Fund Type Definitions, which requires that governmental fund financial statements present
fund balances based on classifications that comprise a hierarchy that is based primarily on
the extent to which the City is bound to honor constraints on the specific purposes for
which amounts in the respective governmental funds can be spent. The classifications used
in the governmental fund financial statements are as follows:
Nonspendable
This classification includes amounts that cannot be spent because they are either (a) not in
spendable form, or (b) are legally or contractually required to be maintained intact. "Not in
spendable form" includes items that are not expected to be converted to cash (such as
inventory and prepaid amounts) and items such as long-term amount of loans and notes
receivable, as well as property acquired for resale. The corpus (or principal) of a permanent
fund is an example of an amount that is legally or contractually required to be maintained
intact.
Restricted
This classification includes amounts for which constraints have been placed on the use of
the resources either (a) externally imposed by creditors (such as through a debt covenant),
grantors, contributors, or laws or regulations of other governments, or (b) imposed by law
through constitutional provisions or enabling legislation.
Committed
The committed fund balance classification includes amounts that can be used only for the
specific purposes determined by a formal action of the government's highest level of
decision-making authority. The City Commission is the highest level of decision-making
authority for the government that can, by adoption of an ordinance or resolution prior to the
end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the
resolution remains in place until a similar action is taken (the adoption of another
resolution) to remove or revise the limitation.
Assigned
Amounts in the assigned fund balance classification are intended to be used by the
government for specific purposes but do not meet the criteria to be classified as committed.
The City Commission has, by resolution, authorized the City Manager to assign fund
balance. The City Commission may also assign fund balance as it does when appropriating
fund balance to cover a gap between estimated revenue and appropriations in the
subsequent year's appropriated budget.
35
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
R. FUND BALANCE (CONTTNUED)
Assigned (continued)
Unlike commitments, assignments generally only exist temporarily. In other words, an
additional action does not normally have to be taken for the removal of an assignment.
Conversely, as discussed above, an additional action is essential to either remove or revise a
commitment.,
Unassigned
This classification includes the residual fund balance for the General Fund. This
classification represents fund balance that has not been assigned to other funds and that has
not been restricted, committed, or assigned to specific purposes within the General Fund.
Unassigned fund balance may also include negative balances for any governmental fund if
expenditures exceed amounts restricted, committed or assigned for those specific purposes.
Sometimes the government will fund outlays for a particular purpose from both restricted
and unrestricted resources (the total of committed, assigned, and unassigned fund balance).
In order to calculate the amounts to report as restricted, committed, assigned, and
unassigned fund balance in the governmental fund financial statements, a flow assumption
must be made about the order in which the resources are considered to be applied. It is the
government's policy to consider restricted fund balance to have been depleted before using
any of the components of unrestricted fund balance. Further, when the components of
unrestricted fund balance can be used for the same purpose, committed fund balance is
depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.
S. MINIMUM FUND BALANCE POLICY
The City's policy is to maintain an adequate General Fund balance to meet seasonal
shortfalls in cash flow and reduce susceptibility to emergency or unanticipated expenditures
and/or revenue shortfalls. The City Commission has adopted a financial policy to maintain
a Hurricane/Emergency and Disaster Recovery Operating Reserve at a minimum level of
$10,000,000 and a Fiscal Stability Reserve of 25% of the General Fund operating
expenditures which was implemented as of September 30, 2017.
T. USE of ESTIMATES
The preparation of financial statements in conformity with GAAP requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statements.
Estimates also affect the reported amounts of revenues and expenditures/expenses during
the reporting period. Actual results could differ from those estimates.
36
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
IMPLEMENTATION OFNEWACCOUNTING STANDARDS
GASB Statement No. 91, Conduit Debt Obligations, provides a single method of reporting
conduit debt obligations by issuers and eliminates diversity in practice associated with 1)
commitments extended by issuers, 2) arrangements associated with conduit debt
obligations, and 3) related note disclosures. This Statement was implemented by the City
for the fiscal year ended September 30, 2023; however, there was no impact to the City.
GASB Statement No. 94, Public -Private and Public -Public Partnerships and Availability
Payment Arrangements, addresses issues related to public-private and public -public
partnerships (PPP) and provides guidance for accounting and financial reporting for
availability payment arrangements (APA). The Statement provides specific guidance on the
accounting and financial reporting for PPP and APA transactions. This Statement was
implemented by the City for the fiscal year ended September 30, 2023; however, there was
no impact to the City.
GASB Statement No. 96, Subscription -Based Information Technology Arrangements,
provides guidance on the accounting and financial reporting for subscription -based
information technology arrangements. This Statement was implemented by the City for the
fiscal year ended September 30, 2023.
GASB Statement No. 99, Omnibus 2022, addresses certain practice issues identified during
implementation and application of certain GASB Statements, including, but not limited to,
1) classification and reporting of derivative instruments within GASB Statement No. 53,
Accounting and Financial Reporting for Derivative Instruments; 2) clarification of
provisions in GASB Statement No. 87, Leases; 3) clarification of provisions in GASB
Statement No. 94, Public -Private and Public -Public Partnerships and Availability Payment
Arrangements; and 4) clarification of provisions in GASB Statement No. 96, Subscription -
Based Information Technology Arrangements. This Statement was implemented by the City
for the fiscal year ended September 30, 2023.
37
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 2 — DEPOSITS AND INVESTMENTS
DEPOSITS
In addition to insurance provided by the Federal Depository Insurance Corporation, all
deposits are held in banking institutions approved by the State Treasurer of the State of
Florida to hold public funds. Under Florida Statutes, Chapter 280, Florida Security for
Public Deposits Act, the State Treasurer requires all Florida qualified public depositories to
deposit with the Treasurer or banking institution eligible collateral. In the event of a failure
of a qualified public depository, the remaining public depositories would be responsible for
covering any resulting losses. Accordingly, all amounts reported as deposits are issued or
collateralized 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, which
may, from time to time, be amended by the City. Investments are made in accordance with
provisions of the Florida Statutes and the City's by-laws. The City is authorized to invest in
U.S. Government Securities, U.S. Government Agencies, interest-bearing time deposits or
savings accounts, the Florida Local Government Surplus Funds Trust Fund,
intergovernmental investment pools authorized by Florida Statutes, and registered money
market mutual funds. Investments are carried at fair value, as determined by quoted market
prices.
As of September 30, 2023, the City had the following investments:
Investment Maturities
Less Than
Fair Value One Year 1 to 5 Years 6 to 10 Years
Investment Type
Certificates of deposit $ 5,095,174 $ 5,095,174 $ -- $ --
U.S. Government Agencies 42,207,267 5,933,954 30,923,347 5,349,966
Total $ 47,302,441 $ 11,029,128 $ 30,923,347 $ 5,349,966
38
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
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 fair
value of an investment. Generally, the longer the maturity of an investment, the greater the
sensitivity of its fair value to changes in market interest rates. The City's investment policy
minimizes interest rate risk by structuring the portfolio so that securities mature to meet
cash requirements for ongoing operations, thereby avoiding the need to sell securities on 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 10 years.
CREDIT RISK
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation
to the holder of the investment. This is measured by the assignment of a rating by a
nationally recognized statistical rating organization. In accordance with the City's
investment policy, the City minimizes credit risk by limiting investments to authorized
securities and diversifying the portfolio on any investment below a AAA rating so that
potential losses on individual securities will be minimized.
All U.S. Government Securities are explicitly guaranteed by the U.S. government and are
not subject to credit risk. The U.S. Government Agency investments are rated AA+ by
Standard and Poor's. Investments in certificates of deposit are held in qualified public
depositories pursuant to Chapter 280.03 of the Florida Statutes, Florida Security for Public
Deposits Act. Under the Act, all qualified public depositories are required to pledge eligible
collateral having fair value equal to or greater than the average daily or monthly balance of
all public deposits, times the depository'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 for
Treasury Strips, which are limited to 10% of available funds. The City's investment policy
does limit its investments in certificates of deposit, the Florida Local Government Surplus
Funds Trust Fund and intergovernmental investment pools to 50% in any one issuer.
W
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 2 — DEPOSITS AND INVESTMENTS (CONTINUED)
CONCENTRATION CREDIT RISK (CONTINUED)
GASB Statement No. 40, Deposit and Investment Risk Disclosures ("GASB 40"), requires
disclosure when the investment percent is 5% or more in any one issuer. Given the City's
restrictions; the following concentrations are not viewed to be an additional risk to the City:
Issuer
Investment Issuer Fair Value Percentage
Certificates of deposit:
US Century Bank
$ 2,044,626
4.32%
First Horizon bank
3,050,548
6.45%
U.S. Government Agencies:
Federal Home Loan Bank
17,871,967
37.78%
Federal Home Loan Mortgage Corp
10,933,674
23.11%
Federal Agricultural Mortgage Corp
1,939,687
4.10%
Federal Farm Credit Bank
11,461,939
24.23%
Total
$ 47,302,441
100.00%
CUSTODIAL CREDIT RISK
GASB 40 requires governments to disclose deposits and investments exposed to custodial
credit risk. The custodial credit risk for investments is the risk that, in the event of the
failure of the counterparty to a transaction, a government may not be able to recover the
value of investment or collateral securities that are in the possession of an outside party.
The City's investment policy requires all securities, with the exception of certificates of
deposit, to be held with a third -party custodian; and all securities purchased
by, and all collateral obtained by the City should be properly designated as an asset of the
City. The securities must be held in an account separate and apart from the assets of the
financial institution. Certificates of deposit issued by a local bank or savings and loan
association may be held in safekeeping at that institution.
Rol
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 2 — DEPOSITS AND INVESTMENTS (CONTINUED)
FAIR VALUE MEASUREMENTS
The City categorizes its fair value measurements within the fair value hierarchy established
by GAAP. The fair value is the price that would be received to sell an asset, or paid to
transfer a liability, in an orderly transaction between market participants at the
measurement date. The hierarchy is based on the valuation inputs used to measure the fair
value as follows:
Level I - Inputs are directly observable, quoted prices in active markets for identical
assets or liabilities.
Level 2 - Inputs are other than quoted prices included within Level 1 that are for the asset
or liability, either directly or indirectly. These inputs are derived from or corroborated by
observable market data through correlation or by other means.
Level 3 - Inputs are unobservable inputs used only when relevant Level 1 and Level 2
inputs are unavailable.
The level in which an asset is assigned is not indicative of its quality but an indication of
the source of valuation inputs.
At September 30, 2023, the City had the following investments:
Fair Value Measurements Using
Investment by Level Fair Value Level 1 Level 2 Level 3
Debt Securities
U.S. Government Agencies $ 42,207,267 $ -- $ 42,207,267 $ --
Total Debt Securities 42,207,267 -- 42,207,267 --
Investments not subject to level disclosure
Certificate of deposit (exempt) 5,095,174
Total Investments $ 47,302,441
The City's U.S. Government Agencies and Securities are valued using the matrix pricing
model (Level 2). Investments in certificates of deposit are exempt from GASB
Statement No. 72, Fair Value Measurement and Application ("GASB 72"), fair value
hierarchy disclosures per paragraph 69 of GASB 72 and are valued at their amortized cost
and any accrued interest on these investments.
41
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 3 — RECEIVABLES AND DUE FROM OTHER GOVERNMENTS
RECEIVABLES
Receivables at September 30, 2023, were as follows:
Total $ 2,114,966 $ 316,995 $ 395,640 $ 2,827,601
LEASE RECEIVABLE
The City, as a lessor, has entered into 5 lease agreements which, as of September 30, 2023,
have a remaining period that range from 59 months to 981 months. Effectively October 1,
2021, the City implemented GASB 87. An initial lease receivable was recorded in the
amount of $32,113,141. As of September 30, 2023, the value of the lease receivable is
$50,184,823. Required monthly fixed payments, from the lessees, range from $3,250 to
$38,000. The value of the deferred inflow of resources as of September 30, 2023 was
$48,490,426 and the City recognized lease revenue of ,$1,317,181 during the fiscal year. All
lessees have extension options which range from 56 months to 480 months.
The following schedule represents the future principal and interest revenue to be received:
For the Fiscal Year Ending
September 30,
Taxes
Accounts
Other
Total
General Fund
$ 1,624,905
$ 20,855
$ 379,525
$ 2,025,285
General Capital Projects Fund
--
290,313
8,868
299,181
Street Maintenance and Construction Fund
363,764
--
6,722
370,486
Building Fund
--
5,827
--
5,827
Stormwater Fund
126.297
--
525
126.822
Total $ 2,114,966 $ 316,995 $ 395,640 $ 2,827,601
LEASE RECEIVABLE
The City, as a lessor, has entered into 5 lease agreements which, as of September 30, 2023,
have a remaining period that range from 59 months to 981 months. Effectively October 1,
2021, the City implemented GASB 87. An initial lease receivable was recorded in the
amount of $32,113,141. As of September 30, 2023, the value of the lease receivable is
$50,184,823. Required monthly fixed payments, from the lessees, range from $3,250 to
$38,000. The value of the deferred inflow of resources as of September 30, 2023 was
$48,490,426 and the City recognized lease revenue of ,$1,317,181 during the fiscal year. All
lessees have extension options which range from 56 months to 480 months.
The following schedule represents the future principal and interest revenue to be received:
For the Fiscal Year Ending
September 30,
Principal
Interest
Total
2024
$ 45,757
$ 937,647
$ 983,404
2025
61,954
939,502
1,001,456
2026
96,407
941,193
1,037,600
2027
(56,296)
942,296
885,999
2028
(122,703)
944,493
821,790
2029-2033
(465,341)
4,751,522
4,286,181
2034-2038
2,564
4,768,971
4,771,534
2039 -2043
607,563
4,731,945
5,339,508
2044-2048
1,303,012
4,631,785
5,934,796
2049-2053
1,923,568
4,463,457
6,387,026
Thereafter
46,788,339
24,244,920
71,033,259
Total
$50,184,823
$52,297,730
$102,482,553
42
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 4 - CAPITAL ASSETS
Capital asset activity for the fiscal year ended September 30, 2023 was as follows:
Beginning Ending
Balance * Additions Deletions Balance
Governmental activities:
Capital assets not being depreciated:
Land $ 96,985,232 $ $ $ 96,985,232
Easements 488,130 488,130
Construction in progress 37,147,685 6,259,455 (1,777,245) 41,629,895
Total Capital Assets Not Being Depreciated 134,621,047 6,259,455 (1,777,245) 139,103,257
Capital assets being depreciated/amortized
Buildings
45,811,363
(1,388,878)
45,811,363
Improvements
8,534,165
578,911 (15,000)
9,098,076
Machinery and equipment
14,142,707
2,449,157 (603,847)
15,988,017
Infrastructure
101,287,227
1,531,892
102,819,119
Leases (right -to -use asset)
72,467
22,648
95,115
Subscriptions (right -to -use asset)
1,157,347
296,110
1,453,457
Total Capital Assets Being Depreciated/Amortized
171,005,276
4,878,718 (618,847)
175,265,147
Less accumulated depreciation/amortization
Buildings
(8,626,691)
(1,388,878)
(10,015,569)
Improvements
(5,637,451)
(486,086)
14,063
(6,109,474)
Machinery and equipment
(11,512,950)
(1,301,260)
566,542
(12,247,668)
Infrastructure
(271185,992)
(3,398,974)
(30,584,966)
Leases (Right -of -use asset)
(13,064)
(22,603)
(35,667)
Subscriptions (Right -of -use asset)
(320,064)
(320,064)
Total Accumulated Depreciation/Amortization
(52,976,148)
(6,917,865)
580,605
(59,313,408)
Total Capital Assets Being Depreciated/Amortized, Net
118,029,128
(2,039,147)
(38,242)
115,951,739
Governmental Activities Capital Assets, Net
$ 252,650,175
$ 4,220,308
$ (1,815,487)
$ 255,054,996
Business -type activities:
Capital assets not being depreciated:
Construction in progress
Total Capital Assets Not Being Depreciated
Capital assets being depreciated:
Infrastructure
Machinery and equipment
Total Capital Assets Being Depreciated
Less Accumulated Depreciation for:
Infrastructure
Machinery and equipment
Total Accumulated Depreciation
Total Capital Assets Being Depreciated, Net
Business -Type Activities Capital Assets, Net
$ 622,128 $ 159,866 $ $ 781,994
622,128 159,866 781,994
19,056,409 19,056,409
502,075 38,457 540,532
19,558,484 38,457 19,596,941
(4,975,139) (419,678) (5,394,817)
(412,173) (42,286) (454,459)
(5,387,312) (461,964) (5,849,276)
14,171,172 (423,507) 13,747,665
$ 14,793,300 $ (263,641) $ $ 14,529,659
*Beginning balances as of October 1, 2022 were as a result of implementation of GASB 96.
43
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 4 - CAPITAL ASSETS (CONTINUED)
Depreciation/amortization expense was charged to functions/programs of the City as
follows at September 30, 2023:
Governmental Activities:
General government $ 461,342
Public safety 817,379
Physical environment 3,330,995
Culture and human services 2,105,828
Transportation 202,322
Total Depreciation/Amortization Expense - Governmental
Activities $ 6,917,866
Business -type activities:
Stormwater $ 461,964
Total Depreciation Expense - Business -Type Activities $ 461,964
NOTE 5 — INTERFUND TRANSFERS
Interfund transfers at September 30, 2023 consisted of the following:
Transfer Out Transfer In Amount
General Fund Street Maintenance and Construction Fund $ 500,000
Street Maintenance and Construction Fund General Capital Projects Fund 108,477
Total Transfers $ 608,477
The transfer out from the General Fund to the Streets Maintenance and Construction Fund
is to cover fund expenditures and increased costs for streets and transportation initiatives
throughout the City. The transfer out from the Streets Maintenance and Construction fund
to the Capital Projects fund is to transfer Citizen's Independent Transportation Trust monies
which will be used on capital projects related to transportation and pedestrian access
improvements.
44
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 6 — LONG-TERM LIABILITIES
CHANGES IN LONG-TERM LIABILITIES
The following is a summary of changes in the long-term liabilities for the fiscal year ended
September 30, 2023:
Business -type activities:
Revenue bonds
$ 241,224 $
- $ (241,224) $
$ -
Total Bonds Payable
Due
(241,224)
Beginning
Net pension liability
262,988
Ending
Within
Total OPEB liability
Balance
Additions
Deletions
Balance
One Year
Governmental activities:
25,114 2,511
Long -Term Liabilities
$ 561,849 $
139,034 $ (299,366) $
401,517 $ 2,511
Revenue bonds
$ 4,831,495
$
$ (1,811,792)
$ 3,019,703
$ 728,525
Note payable
8,925,422
(1,124,887)
7,800,535
1,170,734
Total Bonds and Note Payable
13,756,917
-
(2,936,679)
10,820,238
1,899,259
Total OPEB liability
5,060,733
--
(1,344,163)
3,716,570
Net pension liability
26,035,827
11,278,116
(3,909,642)
33,404,301
--
Compensated absences
4,443,196
5,019,066
(4,443,196)
5,019,066
501,907
Lease (right -to -use asset)
59,191
22,648
(22,133)
59,706
25,104
Subscriptions (right -to -use asset)
1,150,387
296,110
(392,385)
1,054,112
354,967
Total Long -Term Liabilities
$ 50,506,251
$ 16,615,940
$(13,048,198)
$ 54,073,993
$ 2,781,237
Business -type activities:
Revenue bonds
$ 241,224 $
- $ (241,224) $
$ -
Total Bonds Payable
241,224
(241,224)
Net pension liability
262,988
113,920 (39,491)
337,417
Total OPEB liability
39,614
-- (628)
38,986
Compensated absences
18,023
25,114 (18,023)
25,114 2,511
Long -Term Liabilities
$ 561,849 $
139,034 $ (299,366) $
401,517 $ 2,511
*Beginning balance as of October 1, 2022 were adjusted as a result of implementation of GASB 96
The liability for compensated absences, net pension liability and other postemployment
benefit ("OPEB") are liquidated by the General Fund.
45
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 6 — LONG-TERM LIABILITIES (CONTINUED)
GOVERNMENTAL ACTIVITIES
Bank of America Promissory Note (Note Payable)
On June 8, 2009, the City entered into a $20,000,000 promissory note agreement with Bank
of America to finance the purchase of land located within the City limits to convert the land
into public parks. Principal and interest payments are due in equal quarterly installments of
$368,145 through July 1, 2029. The promissory note bears interest at a rate of 4.03%. The
City covenants to budget and appropriate non -ad valorem revenues in amounts sufficient to
pay the principal of and interest on the note.
The note contains provisions in the event of default of any payment due to the lender,
written admission or inability to pay or filing a petition of bankruptcy, judgment of
insolvency, or other similar events by the City, the lender may declare all obligations under
this bond immediately due and payable.
2011 Series Capital Improvement Revenue and Revenue Refunding Bonds (Revenue
Bonds)
On November 10, 2011, the City issued the Capital Improvement Revenue and Revenue
Refunding Bonds, Series 2011, in the amount of $10,000,000. The bonds bear interest at
2.38% and mature in November 2026. Interest is payable semiannually on the first day of
May and November. The bonds were issued to (1) finance a portion of the costs of
development of City parklands, municipal garage and improvements to existing parks,
(2) refund $7,575,000 of outstanding 2001A Series Florida Municipal Loan Council
Revenue, and (3) pay costs of issuance of the bonds. The City covenants to budget and
appropriate non -ad valorem revenues in amounts sufficient to pay the principal of and
interest on the bonds, and the bonds are further secured by a pledge of the half -cent sales
tax. The Bond Indenture also requires the maintenance of a minimum debt service coverage
ratio of 1.50:1.00.
The bond contains provisions in the event of default of any payment due to the lender,
written admission or inability to pay or filing a petition of bankruptcy, judgment of
insolvency, or other similar events by the City, the lender may declare all obligations under
this bond immediately due and payable.
46
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 6 — LONG-TERM LIABILITIES (CONTINUED)
GOVERNMENTAL ACTIVITIES (CONTINUED)
2012 Series Capital Improvement Revenue Refunding Bonds (Revenue Bonds)
On April 20, 2012, the City issued the Capital Improvement Revenue Refunding Bonds,
Series 2012, in the amount $10,000,000. The bonds bear interest at 2.43% and matured in
November 2022. Interest is payable semiannually on the first day of May and November.
The proceeds plus $2,211,150 of City funds were used to refund $11,510,000 of
outstanding 2002C Series Florida Municipal Loan Council Revenue Bonds. The City
covenants to budget and appropriate non -ad valorem revenues in amounts sufficient to pay
the principal of and interest on the bonds.
The bond contains provisions in the event of default of any payment due to the lender,
written admission or inability to pay or filing a petition of bankruptcy, judgment of
insolvency, or other similar events by the City, the lender may declare all obligations under
this bond immediately due and payable.
BUSINESS -TYPE ACTIVITIES
2013 Series Stormwater Utility Revenue Refunding Bonds
On April 22, 2013, the City issued the 2013 Series Stormwater Utility Revenue Refunding
Bonds in the amount of $4,450,000. The bonds bear interest at 1.82% and matured in
February 2023. Interest is payable quarterly on the first day of February, May, August and
November. The principal and interest are secured by a pledge of and lien on the stormwater
utility fees. The Bond Indenture also requires the maintenance of a minimum debt service
coverage ratio of 1.35:1.00.
Annual debt service requirements to maturity for revenue bonds and note payable are as
follows:
For the Fiscal Year Ending Governmental Activities
September 30, Principal Interest
2024 $ 1,899,259 $ 379,993
2025 1,965,988 308,800
2026 2,034,363 236,044
2027 2,104,968 160,668
2028 1,378,140 94,440
2029 1,437,520 37,022
Total $10,820,238 $ 1,216,967
47
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 6 — LONG-TERM LIABILITIES (CONTINUED)
PLEDGED REVENUES
The City's debt is collateralized by multiple sources. The following table provides the
revenue pledged for each debt issuance, the amounts of such revenue received in the current
year, the current year principal and interest paid on the debt, the date through which the
revenue is pledged under the debt agreement, and the total pledged future revenue for each
debt, which is the amount remaining of principal and interest on the indebtedness at
September 30, 2023:
Debt Issue
Governmental activities:
Bank of America
Promissory note,
and the 2012
Series Capital
Improvement Revenue
Refunding Bonds
2011 Series Capital
Improvement Revenue
Refunding Bonds
Business -type activities:
2013 Series Stormwater
Utility Revenue
Refunding Bonds
Pledged Revenue
Revenue Received
Future
Maturities
Principal Principal and Pledged
Interest Paid Interest Through
Legally available
non -ad valorem
revenues $ 36,266,739 $ 2,586,153 $ 8,837,454 2029
Half -cent sales tax $ 2,417,438 $ 810,665 $ 3,199,751 2027
Stormwater utility
fees $ 1,308,002 $ 242,872 $ -- 2023
48
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 6 — LONG-TERM LIABILITIES (CONTINUED)
LEASES (RIGHT-TO-USEASSETS)
The City entered into 8 lease agreements as a Lessee which range in duration from 37
months to 48 months. The lease agreements qualify as other than a short-term lease under
GASB 87 and; therefore, have been recorded at the present value of the future minimum
lease payments as of the date of their inception. An initial lease liability was recorded in the
amount of $95,115. As of September 30, 2023, the value of the lease liability is $59,706.
Principal and interest payments made during the fiscal year totaled $22,986. Required
monthly fixed payments range from approximately $135 to $609. The value of the leases
(right -to -use assets) as of September 30, 2023 is $95,115 with accumulated amortization of
$35,667.
The future minimum lease obligations and the net present value of these minimum lease
payments as of September 30, 2023, are as follows:
For the Fiscal Year Ending Governmental Activities
September 30, Principal
2024 $ 25,104
2025
2026
2027
Total
18,731
12,932
Interest Total
840 $ 25,944
514 19,245
204 13,136
2,939 19 2,958
$ 59,706 $ 1,577 $ 61,283
SUBSCRIPTION -BASED INFORMATION TECHNOLOGYARRANGEMENTS (SBITA)
The City entered into multiple subscription arrangements. The subscription arrangements
qualify as other than a short-term subscription arrangements under GASB 96 and therefore;
have been recorded at the present value of the future minimum payments as of the date of
their inception. An initial subscription liability was recorded in the amount of $1,150,387.
Subscription arrangements that began during the fiscal year totaled $296,110. As of
September 30, 2023, the value of the subscription (right -to -use asset) liability is
$1,054,112. Principal and interest payments made during the fiscal year totaled $413,733.
Required monthly fixed payments range from approximately $47 to $4,386. The value of
the subscription arrangements as of September 30, 2023 is $1,453,457 with accumulated
amortization of $320,064.
49
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 6 — LONG-TERM LIABILITIES (CONTINUED)
SUBSCRIPTION -BASED INFORMATION TECHNOL OG Y A RRANGEMENTS (SBITA) (CONTINUED)
The future minimum subscription obligations and the net present value of these minimum
subscription payments as of September 30, 2023, are as follows:
For the Fiscal Year Ending
September 30,
2024
2025
2026
2027
Total
Governmental Activities
Principal
$ 354,967
354,422
301,050
Interest Total
32,393 $
387,360
21,474
375,896
10,483
311,533
43,673 1,266 44,939
$ 1,054,112 $ 65,616 $ 1,119,728
NOTE 7 —EMPLOYMENT RETIREMENT SYSTEM
All regular, full-time employees are covered by: (1) the City's 401(a) Plan, a defined
contribution pension plan, administered by an independent agent, ICMA Retirement
Corporation, and authorized by resolution, or (2) the Florida Retirement System ("FRS"), a
cost-sharing, multiple -employer, public employee retirement system, through a defined
benefit pension plan administered by the Department of Management Services Division of
Retirement. All part-time employees and elected officials are also covered by the FRS
Pension Plan. The City's policy is to fund the annual pension costs in the annual budget.
The City has no fiduciary responsibility for the plans.
401(A)
Under the City's 401(a) Plan, City contributions and mandatory employee contributions, as a
percentage of employee gross wages, were as follows for each employee group: General
Employees - 11% and 4% and Management Officers - 11% and 6%, respectively. Vesting
schedules for each employee group range from immediate vesting (100%) for Management
Officers to full vesting over various periods of time through 3 years for general employees.
Under the 401(a) Plan, benefits depend solely on amounts contributed to the plan plus
investment earnings. The total number of employees for each employee group under the
401(a) Plan as of September 30, 2023 was as follows: General Employees — 3 and
Management Officers - 1.
50
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 7 - EMPLOYMENT RETIREMENT SYSTEM (CONTINUED)
FLORIDA RETIREMENT SYSTEM
On September 29, 2002, the City joined the FRS to provide retirement and survivor benefits
to all eligible City employees. On this date, the employees had the option of making a one-
time election of remaining in the 401(a) Plan or choosing the FRS. All eligible employees
hired on or after September 30, 2002 were included in the FRS.
As provided by Chapters 121 and 112, Florida Statutes, the FRS provides two cost-sharing,
multiple -employer defined benefit plans administered by the Florida Department of
Management Services, Division of Retirement, including the FRS Pension Plan ("Pension
Plan"), FRS Investment Plan ("Investment Plan") and the Retiree Health Insurance Subsidy
("HIS Plan"). The FRS provides retirement and disability benefits, annual cost -of -living
adjustments, and death benefits to plan members and beneficiaries. Benefits are established
by Chapter 121, Florida Statutes, and Chapter 60S, Florida Administrative Code.
Amendments to the law can be made only by an act of the Florida Legislature.
The State of Florida annually issues a publicly available financial report that includes
financial statements and required supplementary information for the FRS. The latest
available report may be obtained by writing to the State of Florida Division of Retirement,
Department of Management Services, P.O. Box 9000, Tallahassee, Florida 32315-9000, by
calling (877) 377-1737, or by visiting:
https://www.dms.myflorida.com/workforce_operations/retirement/publications.
Net Pension Liability between both FRS and HIS plans totals are listed below:
FRS HIS Total
Net Pension Liability $ 25,458,602 $ 8,283,116 $ 33,741,718
Deferred Outflows of Resources $ 7,586,471 $ 1,087,255 $ 8,673,726
Deferred Inflows of Resources $ 574,011 $ 737,202 $ 1,311,213
The City's aggregate pension expense was $5,313,113 for the fiscal year ended
September 30, 2023.
51
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 7 — EMPLOYMENT RETIREMENT SYSTEM (CONTINUED)
PENSION PLAN- FRS
Plan Description
The Pension Plan is a cost-sharing, multiple -employer defined benefit pension plan, with a
Deferred Retirement Option Program ("DROP") for eligible employees.
Benefits Provided
Benefits under the Pension Plan are computed on the basis of age, average final
compensation, and service credit. For Pension Plan members enrolled before July 1, 2011,
Regular class members who retire at or after age 62 with at least six years of credited
service, or 30 years of service 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 of credited service. Vested members with less than 30
years of service may retire before age 62 and receive reduced retirement benefits. Special
Risk Administrative Support class members who retire at or after age 55 with at least six
years of credited service, or 25 years of service 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 of credited service.
Special Risk class members (sworn law enforcement officers, firefighters, and correctional
officers) who retire at or after age 55 with at least six years of credited service, or with 25
years of service regardless of age, are entitled to a retirement benefit payable monthly for
life, equal to 3.0% of their final average compensation, based on the five highest years of
salary for each year of credited service. Senior Management Service class members who
retire at or after age 62 with at least six years of credited service, or 30 years of service
regardless of age are entitled to a retirement benefit payable monthly for life, equal to 2.0%
of their final average compensation, based on the five highest years of salary for each year
of credited service.
Elected Officers' class members who retire at or after age 62 with at least six years of
credited service, or 30 years of service regardless of age, are entitled to a retirement benefit
payable monthly for life, equal to 3.0% (3.33% for judges and justices) of their final
average compensation, based on the five highest years of salary for each year of credited
service.
For Plan members enrolled on or after July 1, 2011, the vesting requirement is extended to
eight years of credited service for all these members and increasing normal retirement to
age 65, or 33 years 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 Special Risk Administrative Support class members. Also, the
final average compensation for all these members will be based on the eight highest years
of salary.
52
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 7 - EMPLOYMENT RETIREMENT SYSTEM (CONTINUED)
PENSION PLAN- FRS (CONTINUED)
Benefits Provided (continued)
As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the
Pension Plan before July 1, 2011, and all service credit was accrued before July 1, 2011, the
annual cost -of -living adjustment is 3% 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 -living adjustment. The annual cost -of -living adjustment is a proportion of
3% determined by dividing the sum of the pre -July 2011 service credit by the total service
credit at retirement multiplied by 3%. Plan members initially enrolled on or after July 1,
2011, will not have a cost -of -living adjustment after retirement.
In addition to the above benefits, the DROP program allows eligible members to defer
receipt of monthly retirement benefit payments, while continuing employment with an FRS
employer for a period not to exceed 96 months after electing to participate. Deferred
monthly benefits are held in the FRS Trust Fund and accrue interest. There are no required
contributions by DROP participants.
Contributions
Effective July 1, 2011, all enrolled members of the FRS, other than DROP participants, are
required to contribute 3% of their salary to the FRS. In addition to member contributions,
governmental employers are required to make contributions to the FRS based on statewide
contribution rates established by the Florida Legislature. These rates are updated as of
July 1 each year. The employer contribution rates by job class for the periods from
October 1, 2022 through June 30, 2023 and from July 1, 2023 through September 30, 2023,
respectively, were as follows: Regular - 11.91% and 13.57%; Special Risk Administrative
Support — 38.65% and 39.82%; Special Risk — 27.83% and 32.67%; Senior Management
Service — 31.57% and 34.52%; Elected Officers' — 57.00% and 58.68%; Retirees — 5.89%
and 6.78%; and DROP participants — 18.60% and 21.13%. These employer contribution
rates include 1.66% and 2.00% HIS Plan subsidy for the periods October 1, 2022 through
June 30, 2023 and from July 1, 2023 through September 30, 2023, respectively.
The City's contributions, including employee contributions, to the Pension Plan totaled
$4,486,895 for the fiscal year ended September 30, 2023.
53
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 7 — EMPLOYMENT RETIREMENT SYSTEM (CONTINUED)
PENSION PLAN — FRS (CONTINUED)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
At September 30, 2023, the City reported a liability of $25,458,602 for its proportionate
share of the Pension Plan's net pension liability. The net pension liability was measured as
of June 30, 2023, and the total pension liability used to calculate the net pension liability
was determined by an actuarial valuation as of July 1, 2023. The City's proportion of the
net pension liability was based on a projection of the City's 2022-23 fiscal year
contributions relative to the 2022-22 fiscal year contributions of all participating members.
At June 30, 2023, the City's proportion was .063891151%, which was an increase of
.006635051% from its proportion measured as of June 30, 2022.
For the year ended September 30, 2023, the City recognized pension expense of
$2,386,034. At September 30, 2023, the City reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Description Resources Resources
Difference between expected and actual experience
Change of assumption
Net difference between projected and actual earnings
on pension plan investments
Changes in proportion and differences between City
contributions and proportionate share of contributions
City contributions subsequent to the measurement date
Total
$ 2,390,343 $ --
1,659,603 --
1,063,220 --
1,679,289 574,011
794,016 --
$ 7,586,471 $ 574,011
54
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 7 — EMPLOYMENT RETIREMENT SYSTEM (CONTINUED)
PENSION PLAN— FRS (CONTINUED)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions (continued)
Deferred outflows of resources related to FRS of $794,016 resulting from City
contributions subsequent to the measurement date of June 30, 2023 will be recognized as a
reduction of the net pension liability in the subsequent fiscal year. Other amounts reported
as deferred outflows of resources and deferred inflows of resources related to pensions will
be recognized in pension expense (income), as follows:
Actuarial Assumptions — The total pension liability in the July 1, 2023 actuarial valuation
was determined using the following actuarial assumptions, applied to all periods included in
the measurement:
Inflation 2.40%
Salary increases 3.25%, average, including inflation
Investment rate 6.70%, net of pension plan investment
of return expense, including inflation
Mortality rates were based on the PUB -2010 base table, projected generationally with Scale
MP -2018.
The most recent experience study for the FRS Pension Plan was completed as of
September 30, 2020 for the period July 1, 2013 through June 30, 2018.
55
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 7 — EMPLOYMENT RETIREMENT SYSTEM (CONTINUED)
PENSION PLAN— FRS (CONTINUED)
The long-term expected rate of return on Pension Plan investments was not based on
historical returns, but, instead, was based on a forward-looking capital market economic
model. The allocation policy's description of each asset class was used to map the target
allocation to the asset classes shown below. Each asset class assumption is based on a
consistent set of underlying assumptions and includes an adjustment for the inflation
assumption. The target allocation and best estimates of arithmetic and geometric real rates
of return for each major asset class are summarized in the following table:
Total 100%
Assumed Inflation - Mean 2.4% 1.4%
Discount Rate
The discount rate used to measure the total pension liability was 6.70%. The Pension Plan's
fiduciary net position was projected to be available to make all projected future benefit
payments of current active and inactive employees. Therefore, the discount rate for
calculating the total pension liability is equal to the long-term expected rate of return.
56
Compound
Annual
Annual
Target
Arithmetic
(Geometric)
Standard
Asset Class
Allocation
Return
Return
Deviation
Cash
1.0%
2.9%
2.9%
1.1%
Fixed income
19.8%
4.5%
4.4%
3.4%
Global equity
54.0%
8.7%
7.1%
18.1%
Real estate
10.3%
7.6%
6.6%
14.8%
Private equity
11.1%
11.9%
8.8%
26.3%
Strategic investments
3.8%
6.3%
6.1%
7.7%
Total 100%
Assumed Inflation - Mean 2.4% 1.4%
Discount Rate
The discount rate used to measure the total pension liability was 6.70%. The Pension Plan's
fiduciary net position was projected to be available to make all projected future benefit
payments of current active and inactive employees. Therefore, the discount rate for
calculating the total pension liability is equal to the long-term expected rate of return.
56
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 7 — EMPLOYMENT RETIREMENT SYSTEM (CONTINUED)
PENSION PLAN— FRS (CONTINUED)
Sensitivity of the City's Proportionate Share of the Net Pension Liability to Changes in
the Discount Rate
The following presents the City's proportionate share of the net pension liability calculated
using the discount rate of 6.70%, as well as what the City's proportionate share of the net
pension liability would be if it were calculated using a discount rate that is 1 -percentage -
point lower (5.70%) or I -percentage -point higher (7.70%) than the current rate:
City's proportionate share of the net pension liability
HIS PLAN
Current
1% Discount 1%
Decrease Rate Increase
(5.70%) (6.70%) (7.70%)
$ 43,488,476 $ 25,458,602 $ 10,374,455
Plan Description
The HIS Plan is a cost-sharing, multiple -employer defined benefit pension plan established
under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at
any time. The benefit is a monthly payment to assist retirees of State -administered
retirement systems in paying their health insurance costs and is administered by the Florida
Department of Management Services, Division of Retirement.
Benefits Provided
For the fiscal year ended September 30, 2023, eligible retirees and beneficiaries received a
monthly HIS payment of $5 for each year of creditable service completed at the time of
retirement, 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 system must provide proof of eligible health insurance coverage, which may
include Medicare.
57
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 7 - EMPLOYMENT RETIREMENT SYSTEM (CONTINUED)
HIS PLAN (CONTINUED)
Contributions
The HIS Plan is funded by required contributions from FRS participating employers as set
by the Florida Legislature. Employer contributions are a percentage of gross compensation
for all active FRS members. For the fiscal year ended September 30, 2023, the HIS
contribution for the period October 1, 2022 through June 30, 2023 and from July 1, 2023
through September 30, 2023 was 1.66% and 2.00%, respectively. The City contributed
100% of its statutorily required contributions for the current and preceding four years. HIS
Plan contributions are deposited in a separate trust fund from which payments are
authorized. HIS Plan benefits are not guaranteed and are subject to annual legislative
appropriation. In the event legislative appropriation or available funds fail to provide full
subsidy benefits to all participants, benefits may be reduced or cancelled.
The City's contributions to the HIS Plan totaled $67,797 for the fiscal year ended
September 30, 2023.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
At September 30, 2023, the City reported a liability of $8,283,116 for its proportionate
share of the HIS Plan's net pension liability. The net pension liability was measured as of
June 30, 2023, and the total pension liability used to calculate the net pension liability was
determined by an actuarial valuation as of July 1, 2023. The City's proportionate share of
the net pension liability was based on the City's 2022-23 fiscal year contributions relative
to the 2022-22 fiscal year contributions of all participating members. At June 30, 2023, the
City's proportionate share was .052156298%, which was an increase of .00499679% from
its proportionate share measured as of June 30, 2023.
58
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 7 — EMPLOYMENT RETIREMENT SYSTEM (CONTINUED)
HIS PLAN (CONTINUED)
For the fiscal year ended September 30, 2023, the City recognized pension expense of
$2,927,079. In addition, the City reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Description
Difference between expected and actual experience
Change of assumption
Net difference between projected and actual earnings
on HIS Plan investments
Changes in proportion and differences between City
HIS Plan contributions and proportionate share of contributions
City HIS Plan contributions subsequent to the measurement date
Total
Deferred
Deferred
Outflows of
Inflows of
Resources
Resources
$ 121,259
$ 19,442
217,761
717,760
4,278
--
648,854 --
95,103 --
$ 1,087,255 $ 737,202
Deferred outflows of resources related to HIS of $95,103 resulting from City contributions
subsequent to the measurement date of June 30, 2023 will be recognized as a reduction of
the net pension liability in the subsequent fiscal year. Other amounts reported as deferred
outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense (income), as follows:
For the Fiscal Year Ended
September 30,
Amount
2024
$ 96,807
2025
99,711
2026
50,343
2027
(34,076)
2028
20,805
Thereafter
21,360
Total
$ 254,950
59
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 7 — EMPLOYMENT RETIREMENT SYSTEM (CONTINUED)
HIS PLAN (CONTINUED)
Actuarial Assumptions
The total pension liability in the July 1, 2022 actuarial valuation was determined using the
following actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.40%
Salary increases 3.25%, average, including inflation
Municipal bond rate 3.65%
Mortality rates were based on the Generational PUB -2010 with Projection Scale MP -2018
tables.
Because the HIS Program is funded on a pay-as-you-go basis, no experience study has been
completed for that program. The actuarial assumptions that determined the total pension
liability for the HIS Program were based on certain results of the most recent experience
study for the FRS Pension Plan. The municipal rate used to determine total pension liability
was increased from 3.54% to 3.65%.
Discount Rate
The discount rate used to measure the total pension liability was 3.65%. In general, the
discount rate for calculating the total pension liability is equal to the single rate equivalent
to discounting at the long-term expected rate of return for benefit payments prior to the
projected depletion date. Because the HIS benefit is essentially funded on a pay-as-you-go
basis, the depletion date is considered to be immediate, and the single equivalent discount
rate is equal to the municipal bond rate selected by the HIS Plan sponsor. The Bond Buyer
General Obligation 20 -Bond Municipal Bond Index was adopted as the applicable
municipal bond index.
Sensitivity of the City's Proportionate Share of the Net Position Liability to Changes in
the Discount Rate
The following represents the City's proportionate share of the net pension liability
calculated using the discount rate of 3.65%, as well as what the City's proportionate share
of the net pension liability would be if it were calculated using a discount rate that is 1 -
percentage -point lower (2.65%) or 1 -percentage -point higher (4.65%) than the current rate:
Current
1% Discount 1%
Decrease Rate Increase
(2.65%) (3.65%) (4.65%)
City's proportionate share of the net pension liability $ 9,449,742 $ 8,283,116 $ 7,316,061
•1
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 8 - OTHER POSTEMPLOYMENT BENEFITS
PLANDESCRIPTION
The City provides a single -employer, defined benefit, postemployment health insurance
plan for employees and sworn officers. The plan allows its employees and their
beneficiaries, at their own cost, to continue to obtain health, dental and vision insurance
benefits upon retirement. In addition, retired sworn police officers with 20 or more years of
service with the City receive a $500 a month stipend reduced to $250 a month for two years
once the retired sworn police officer reaches age 65. If the employee has other health
insurance coverage, they are not eligible. The benefits of the plan conform with Florida
Statutes, which is the legal authority for the plan. The plan has no assets and does not issue
a separate financial report. The Plan operates on a pay-as-you-go basis.
FUNDING POLICYAND ANNUAL OPEB COST
The City does not directly make a contribution to the plan on behalf of retirees. Retirees
and their beneficiaries pay the same group rates as are charged to the City for active
employees by its healthcare provider. However, the City's actuaries, in their actuarial
valuation, calculate an offset to the cost of these benefits as an employer contribution, based
upon an implicit rate subsidy. This offset equals the total age-adjusted costs paid by the
City for its active employees for coverage of the retirees and their dependents for the year,
net of the retiree's own payments for the year.
The annual OPEB cost is calculated based on the annual required contribution of the
employer, an amount actuarially determined in accordance with GASB Statement No. 75,
Accounting and Financial Reporting for Postemployment Benefits Other than Pensions.
The annual required contribution represents a level of funding that, if paid on an ongoing
basis, is projected to cover normal cost each year and to amortize any unfunded actuarial
liabilities over a period not to exceed 15 years.
As of October 1, 2021, the City had 264 covered employees.
3I
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 8 — OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
CHANGES IN TOTAL OPEB LmBILITY
The City's changes in Total OPEB liability for the fiscal year ended September 30, 2023
(measurement date was September 30, 2022), were as follows:
Service cost
Interest
Difference between expected and actual experience
of the Total OPEB liability
Changes of assumptions and other inputs
Other Changes
Benefit payments
Net change in Total OPEB liability
Total OPEB Liability - Beginning
Total OPEB Liability - Ending
$ 309,363
128,858
(19,208)
(1,587,248)
(176,557)
(1,344,792)
5,100,347
$ 3,755,555
Total OPEB Liability, Expense and Deferred Outflow/Inflow of Resources: For the fiscal
year ended September 30, 2023, the City recognized a Total OPEB liability of $3,755,555.
For the fiscal year ended September 30, 2022, the City recognized an OPEB expense of
$28,353. In addition, the City reported deferred outflows of resources and deferred inflows
of resources related to OPEB from the following sources:
Description
Difference between expected and actual
Change of assumption
Total
Deferred
Deferred
Outflows of
Inflows of
Resources
Resources
$ 33,348 $ 458,643
1,040,352 2,711,947
$ 1,073,700 $ 3,170,590
62
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 8 — OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
CHANGES IN TOTAL OPEB LL4BILITY (CONTINUED)
The amounts reported as deferred inflows of resources related to OPEB will be recognized
in OPEB income, as follows:
For the Fiscal Year Ended
September 30,
Amount
2024
$ (233,313)
2025
(233,313)
2026
(233,313)
2027
(233,313)
2028
(233,313)
Thereafter
(930,324)
Total
$ (2,096,889)
Interest Rate Sensitivity: The following table illustrates the impact of interest rate
sensitivity on the Total OPEB Liability for the fiscal year ended September 30, 2023:
$
1% Decrease Current Discount Rate
(3.77%) (4.77%)
4,122,822 $ 3,755,555
1% Increase
(5.77%)
$ 3,427,371
Healthcare Cost Trend Sensitivity: The following table illustrates the impact of healthcare
cost trend sensitivity on the Total OPEB Liability for the fiscal year ended September 30,
2023:
1% Decrease Current Trend 1% Increase
3.00% - 6.50% 4.00% - 7.50% 5.00% - 8.50%
$ 3,422,542 $ 3,755,555 $ 4,151,579
63
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 8 - OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
FUNDED STATUS AND FUNDING PROGRESS
The actuarial valuation for the calculation of OPEB involves estimates of the value of
reported amounts and assumptions about the probability of events in the future. Amounts
determined regarding the funded status of the plan and the annual required contributions of
the employer are subject to continual revision, as actual results are compared to past
expectations and new estimates are made about the future. The required schedule of funding
progress presented as required supplementary information is designed to provide multi-year
trend information to show whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued 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
employer and plan members) and include the types of benefits in force at the valuation date
and the pattern of sharing benefit costs between the City and the plan members to that
point. Actuarial calculations reflect a long-term perspective and employ methods and
assumptions that are designed to reduce short-term volatility in actuarial accrued liabilities
and the actuarial value of assets. Significant methods and assumptions were as follows:
Actuarial valuation date
October 1, 2021
Inflation rate
2.50%
Salary increase rate
3.00%
Discount rate
4.77%
Initial trend rate
7.50%
Ultimate trend rate
4.00%
Years to ultimate
53
All mortality rates were based on the PUB -2010 mortality tables. All mortality rates are
those outlined in the July 1, 2019 FRS valuation reports. All tables include fully
generational adjustments for mortality improvements using gender -specific improvement
scale MP -2018.
64
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 9 — DEFERRED COMPENSATION PLAN
The City offers its employees a deferred compensation plan created in accordance with
Internal Revenue Code ("IRC"), Section 457. The plan, administered by the ICIVIA
Retirement Corporation, available to all City employees, permits them to defer a portion of
their salaries until future years. Participation in the plan is optional. The deferred
compensation is generally not available to employees until termination, retirement, death or
the hardship distribution criteria, as defined in IRC Section 457. The assets of the plan are
held in trust and are the sole property of the participants; therefore, no balances or financial
information is reported in the basic financial statements.
NOTE 10 - COMMITMENTS AND CONTINGENCIES
LITIGATION
The City is a defendant in various lawsuits, including personal injury, property damage and
other miscellaneous claims. These legal proceedings are incidental to 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.
RISKMANAGEMENT
The City is exposed to various risks of loss related to torts, theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural disasters.
The City purchases commercial insurance to cover the various risks. There were no
reductions in insurance coverages from coverages in the prior year. There were no settled
claims that have exceeded insurance coverage for each of the past three years.
CONSTRUCTION COMMITMENTS
The City has various pending, ongoing and future capital improvement projects. These
projects primarily consist of the Golden Shores Utility Undergrounding and Drainage
project, Transportation improvements, the Collins Avenue Utility Undergrounding project,
Park and Pier improvements, and other drainage improvements. The remaining
commitments on these projects are estimated to be $2,053,000, $135,000, $356,000,
$1,055,000, $292,000 and $202,000, respectively.
65
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 10 - COMMITMENTS AND CONTINGENCIES (CONTINUED)
GRANTS
Grant monies received and disbursed by the City are for specific purposes and may be
subject to audit by the grantor agencies. Such audits may result in requests for
reimbursements due to disallowed expenditures or other action by grantor agencies. The
City does not believe that such disallowances or other actions taken by the grantor agencies,
if any, would have a material effect on the financial position of the City.
NOTE 11 - JOINT VENTURE
On or about November 25, 2008, the City entered into a public/private partnership
agreement with Dr. Robert Cornfeld, the owner of the Newport Hotel, to share design and
construction costs to rebuild the entire Historic Newport Pier (the "Pier"), which was
severely damaged by Hurricane Wilma in 2005. In accordance with the agreement, the City
accepted ownership of the Pier by entering into the submerged land lease with the State of
Florida to facilitate the construction of the Pier. The partnership agreement further provided
that Dr. Cornfeld was required to contribute $2 million for the design and construction costs
of the Pier. Similarly, the City was required to contribute $2 million for the design and
construction costs of the Pier. Further, the agreement provides that the City would be
responsible for any cost overruns that exceed the total contribution of $4 million from both
parties. The City and Dr. Cornfeld also agreed to split revenues on a 50/50 basis from
leasing the restaurant to be constructed on the Pier. The 50/50 split 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 American
Federated Title Corp. (the "Corp"), a corporate entity affiliated with Dr. Cornfeld, to
manage the Pier as it relates to admission of residents and visitors to the Pier. The
management agreement provided 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, provided the Corp is not in default at the time of the renewal
of the terms. The City has the right to terminate the management agreement at will. During
fiscal year ended September 30, 2022, the management agreement with the Corp, described
above, was amended. The City and the Corp agreed that any funds received from admission
to the Pier would not be used to cover expenses, but would simply be split 50/50 between
the parties. Each entity would be responsible for their own operational expenses. The City
approved an amendment to the management agreement on November 16, 2023 to revise the
Pier admission fees only, all other terms and conditions were kept the same.
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE 11 -JOINT VENTURE (CONTINUED)
During the fiscal year ended September 30, 2014, the City entered into a sublease
agreement with the Corp and Beach Bar @ Newport Pier, LLC ("Beach Bar") whereby
Beach Bar will sublease the entire leased premises consisting of the restaurant facility, bait
shop, second floor of restaurant facility, and additional outdoor dining area on 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 $15,000, plus all applicable sales tax, with the base rent being subject to
increase based on the Consumer Price Index. In addition to the base monthly rent, Beach
Bar shall pay to Corp for each year of the sublease terms, as a percentage of rent, an amount
equal to the amount of annual gross sales times the following 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 sublease agreement with the Corp and Beach Bar expired and was not renewed as of
July 31, 2023.
On or about August 17, 2023, a new sublease agreement was entered into between the Corp
(sublessor) and PRA Hospitality, LLC ("PRA") (subtenant). The initial term of the sublease
is a five (5) year term. PRA shall pay the City a base monthly rent of $16,050, plus
applicable sales tax with the base rent subject to increases based upon the Consumer Price
Index. In addition to the base monthly rent, PRA shall pay to Corp for each year of the
sublease terms, as a percentage of rent, an amount equal to 5% of all annual gross sales.
The foregoing agreements may be modified by the parties based on changes in
circumstances.
The lease related activity is further discussed in Footnote 3 - Receivables and Due from
Other Governments.
67
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF SUNNY ISLES BEACH, FLORIDA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
68
Budgeted Amounts
Actual
Original
Final
Amounts
Variance
Revenues:
Taxes:
Real and personal property
$ 26,185,411
$ 26,185,411
$ 26,375,504
$ 190,093
Utility taxes:
Electric
3,000,000
3,600,000
3,998,491
398,491
Telecommunication
720,000
720,000
802,138
82,138
Water
900,000
900,000
1,231,400
331,400
Gas
25,000
25,000
22,213
(2,787)
Total Utility Taxes
4,645,000
5,245,000
6,054,242
809,242
Total Taxes
30,830,411
31,430,411
32,429,746
999,335
Franchise Fees
2,515,000
2,515,000
3,780,100
1,265,100
Intergovernmental:
State revenue sharing
587,735
587,735
754,806
167,071
Other state taxes
20,000
20,000
23,145
3,145
Federal, State and County grants
--
51,172
66,354
15,182
Half cent sales tax
1,972,795
1,972,795
2,417,438
444,643
Total Intergovernmental
2,580,530
2,631,702
3,261,743
630,041
Licenses and Permits
654,000
657,200
823,278
166,078
Charges for Services
5,530,935
5,720,381
7,737,976
2,017,595
Fines and Forfeitures
772,000
785,965
934,334
148,369
Investment Income
165,000
1,610,000
2,274,472
664,472
Miscellaneous
266,375
266,375
209,935
(56,440)
Total Revenues
$ 43,314,251
$ 45,617,034
$ 51,451,584
$ 5,834,550
(continued)
68
CITY OF SUNNY ISLES BEACH, FLORIDA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND (CONTINUED)
FOR THE YEAR ENDED SEPTEMBER 30, 2023
"
Budgeted Amounts
Actual
Original
Final
Amounts
Variance
Expenditures
Current:
General government:
City commission
$ 398,680
$ 529,268
$ 386,162
$ 143,106
City manager
832,127
862,974
657,096
205,878
Finance
1,284,585
1,318,766
745,147
573,619
Legal
500,000
537,675
209,448
328,227
City clerk
522,713
533,288
517,498
15,790
Human resources
1,641,469
1,071,840
1,015,393
56,447
Information technology
2,369,030
2,428,160
2,064,698
363,462
Media
1,180,870
1,197,254
649,398
547,856
Risk management
1,342,500
1,458,849
1,380,260
78,589
Total General Government
10,071,974
9,938,074
7,625,100
2,312,974
Public safety:
Police
11,887,596
12,236,472
11,454,294
782,178
Ocean Rescue
2,711,602
2,739,035
2,582,255
156,780
Community development
2,579,345
2,775,906
2,112,253
663,653
Total Public Safety
17,178,543
17,751,413
16,148,802
1,602,611
Community services:
Physical environment
4,450,315
3,565,319
2,731,731
833,588
Cultural and human services
8,091,041
6,856,656
5,578,466
1,278,190
Total Community Services
12,541,356
10,421,975
8,310,197
2,111,778
Debt service:
Principal
2,928,843
2,936,679
3,346,107
(409,428)
Interest and fiscal charges
460,147
460,147
481,747
(21,600)
Total Debt Service
3,388,990
3,396,826
3,827,854
(431,028)
Capital outlay
1,280,375
1,404,050
1,831,052
(427,002)
Total Expenditures
44,461,238
42,912,338
37,743,005
5,169,333
Excess (Deficiency) of Revenues Over Expenditures
(1,146,987)
2,704,696
13,708,579
11,003,883
Other Financing Sources (Uses):
Sale of property and equipment
25,000
25,000
28,897
3,897
Insurance recoveries
--
31,708
130,061
98,353
Lease (right -of -use asset) acquired
-
--
22,648
22,648
Subscriptions acquired
--
--
1,425,425
1,425,425
Appropriations of prior year reserves
(2,438,320)
282,382
--
(282,382)
Transfers in
4,560,307
106,214
--
(106,214)
Transfers out
(1,000,000)
(3,150,000)
(500,000)
2,650,000
Total Other Financing Sources (Uses)
1,146,987
(2,704,696)
1,107,031
3,811,727
Net Change in Fund Balance
$ --
$
14,815,610
$ 14,815,610
Fund Balance - Beginning of Year
61,591,508
Fund Balance - End of Year
$ 76,407,118
"
CITY OF SUNNY ISLES BEACH, FLORIDA
SCHEDULE OF REVENUES, EXPENDITURES AND CHNAGES IN FUND BALANCE -
BUDGET AND ACTUAL - AMERICAN RESCUE PLAN FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
Revenues:
Intergovernmental
Total Revenues
Expenditures:
General government
Public safety
Physical environment
Cultural and human services
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses):
Budgeted Amounts
Original Final
Actual Variance
$ -- $ 4,560,307 $
4,574,905 $
14,598
- 4,560,307
4,574,905
14,598
- --
8,879
(8,879)
- 430,000
659,387
(229,387)
1,500,000
1,677,386
(177,386)
-- 1,557,093
1,612,615
(55,522)
- 967,000
602,040
364,960
4,454,093 4,560,307 (106,214)
106,214 14,598 (91,616)
Transfers out (4,560,307) (106,214)
Appropriations of prior year's fund balance 4,560,307 --
Total Other Financing Sources (Uses) -- (106,214)
Net Change in Fund Balance $ - $ --
Fund Balance - Beginning of Year
Fund Balance - End of Year
- 106,214
-- 106,214
14,598 $ 14,598
$ 14,598
70
CITY OF SUNNY ISLES BEACH, FLORIDA
NOTE TO BUDGETARY COMPARISON SCHEDULE
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE I — BUDGETS AND BUDGETARY ACCOUNTING
An annual appropriated budget is adopted for the General Fund, American Rescue Plan
Fund, Street Maintenance and Construction Fund, Building Fund, General Capital Projects
Fund, and the Public Art Trust Fund on a basis consistent with accounting principles
generally accepted in the United States. The City follows these procedures in establishing
the budgetary data reflected in the basic financial statements.
a) The City Manager submits to the City Commission a proposed
operating and capital budget for the ensuing fiscal year. The budget
includes proposed expenditures and the means of financing them.
b) Public hearings are conducted to obtain taxpayer comments.
c) Prior to October 1, the budget is legally enacted through passage of
an ordinance.
d) The City Commission, by ordinance, may make supplemental
appropriations for the year.
e) Formal budgetary integration is employed as a management control
device during the period for the General Fund.
f) The City Manager is authorized to transfer part or all of an
unencumbered appropriation balance within departments within a
fund; however, any revisions that alter the total appropriations of any
department of a fund must be approved by the City Commission.
The legal level of control at which expenditures may not legally
exceed appropriations is at the department level.
g) Encumbered appropriations lapse at fiscal year-end. Encumbered
amounts are re -appropriated in the following year's budget.
h) Budgeted amounts are as originally adopted or as amended.
i) The net change in fund balance for actual amounts, represents the
appropriations of prior year's fund balance that was utilized.
71
CITY OF SUNNY ISLES BEACH, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS
Total OPEB Liability
Service Cost
Interest
Differences Between Expected and Actual Experience
Benefits Payments
Assumption Changes
Other Changes
Net Change in Total OPEB Liability
Total OPEB Liability (Beginning)
Total OPEB Liability (Ending)
2023
2022
2021
2020
2019
2018
$ 309,363
$ 388,259
$ 484,690
$ 470,573
$ 337,550
$ 355,675
128,858
123,397
226,854
176,645
165,013
138,224
(19,208)
491,056
(634,900)
(176,557)
(169,735)
(125,741)
(117,515)
(78,469)
(58,820;
(1,587,248)
(703,944)
(1,368,823)
1,497,648
(136,879)
(160,002)
(1,344,792)
(522,025)
(291,964)
1,392,451
287,215
435,079
5,100,347
5,622,372
5,914,336
4,521,885
4,234,670
3,799,591
$ 3,755,555
$ 5,100,347
$ 5,622,372
$ 5,914,336
$ 4,521,885
$ 4,234,670
Covered -Employee Payroll at Measurement Period $ 16,582,758 $ 15,390,628 $ 14,507,143 $ 12,157,999 $ 11,749,281 $ 11,749,281
Total OPEB Liability as a Percentage of
Covered -Employee Payroll 22.65% 33.14% 38.76% 48.65%
Notes to Schedule:
Information prior to adoption of GASB Statement No. 75 in fiscal year 2018 is not available.
The plan is funded on a pay-as-you-go basis and is not administered as a formal qualifying trust. There were no plan assets as of
the date of the most recent valuation. Since there are currently no invested plan assets held in trust to finance the OPEB liability,
the discount rate is based on the S&P 20 -year municipal bond rate published as of September 30, 2022.
Changes in Assumptions
A change in the discount rate from 2.43% in the prior reporting period to 4.77% for the current reporting period. Also reflected as
assumption changes are updated health care costs and premiums.
This schedule is presented as required by accounting principles generally accepted in the United States ofAmerica; however,
until a full 10 -year trend is compiled, information is presented for those years available.
38.49% 36.04%
72
73
CITY OF SUNNY ISLES BEACH, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY -
FLORIDA RETIREMENT SYSTEM PENSION PLAN
(UNAUDITED)
June 30,
2023
2022 2021 2020 2019 2018
2017
2016 2015 2014
City of Sunny Isles Beach's proportion of
the net pension liability
0.063891151%
0.057256101% 0.058011151% 0.060856890% 0.059267773% 0.059740238%
0.057945094%
0.058090248% 0.053894033% 0.051133999%
City of Sunny Isles Beach's proportionate share
$ 25,458,602
$ 21,303,871 $ 4,382,083 $ 26,376,273 $ 20,410,996 $ 17,994,069
$ 17,139,770
$ 14,667,833 $ 6,961,137 $ 3,119,926
of the net pension liability
City of Sunny Isles Beach's covered payroll
$ 19,622,351
$ 16,898,383 $ 15,810,486 $ 15,348,814 $ 15,161,383 $ 14,745,632
$ 13,987,180
$ 13,608,825 $ 13,000,622 $ 12,258,101
City of Sunny Isles Beach's proportionate share
of the net pension liability as a percentage of
its covered payroll
129.74%
126.07% 27.72% 171.85% 134.62% 122.03%
122.54%
107.78% 53.54% 25.45%
Plan fiduciary net position as a percentage of
total pension liability
82.38%
82.89% 96.40% 78.85% 82.61% 84.26%
83.89%
92.00% 92.00% 96.09%
This schedule is presented as required by accounting
principles generally accepted in the United States ofAmerica.
73
74
CITY OF SUNNY ISLES BEACH, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY -
RETIREE HEALTH INSURANCE SUBSIDY PROGRAM
(UNAUDITED)
June 30,
2023 2022 2021 2020 2019 2018
2017
2016
2015
2014
City of Sunny Isles Beach's proportion of
the net pension liability
0.052156298% 0.047159501% 0.046730414% 0.046462988% 0.045544109% 0.044162719%
0.042122000%
0.041674824%
0.040376046%
0.038232292%
City of Sunny Isles Beach's proportionate
share ofthe net pension liability
$ 8,283,116 $ 4,994,944 $ 5,732,188 $ 5,673,055 $ 5,059,930 $ 4,674,232
$ 4,503,879
$ 4,857,028
$ 4,117,721
$ 3,574,813
City of Sunny Isles Beach's covered
$ 19,622,351 $ 16,898,383 $ 15,810,486 $ 15,348,814 $ 15,161,383 $ 14,745,632
$ 13,987,180
$ 13,608,825
$ 13,000,622
$ 12,258,101
payroll
City of Sunny Isles Beach's proportionate
share of the net pension liability as a
percentage of its covered payroll
42.2% 29.6% 36.26% 36.96% 33.37% 31.70%
32,20%
35.69%
31.67%
29.16%
Plan fiduciary net position as a percentage
oftotal pension liability
4.12.% 4.81% 3.56% 3.00% 2.63% 2.15%
1.64%
0.97%
0.50%
0.99%
This schedule is presented as required by accounting
principles generally accepted in the United States ofAmerica.
74
CITY OF SUNNY ISLES BEACH, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS -
FLORIDA RETIREMENT SYSTEM PENSION PLAN
(UNAUDITED)
September 30,
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
Contractually required City contribution
$ 3,881,336
$ 3,014,996
$ 3,275,920
$ 3,069,901
$ 2,838,225
$ 2,683,987
$ 1,870,647
$ 1,416,623
$ 1,567,372
$ 1,414,159
Contributions in relation to the contractually
required contribution
3,881,336
3,014,996
3,275,920
3,069,901
2,838,225
2,683,987
1,870,647
1,416,623
1,567,372
1,414,159
Contribution deficiency (excess)
$ --
$ --
$ --
$ --
$ --
$ --
$ --
$ --
$ --
$ --
City of Sunny Isles Beach's covered payroll
$ 19,562,807
$ 17,415,941
$ 15,996,014
$ 15,723,425
$ 15,063,697
$ 14,745,632
$ 13,987,180
$ 13,608,825
$ 13,000,622
$ 12,258,101
Contributions as a percentage ofcovered payroll
19.84%
17.31%
20.48%
19.52%
18.84%
18.20%
13.37%
10.41%
12.06%
11.54%
This schedule is presented as required by accounting principles generally accepted in the United States oJAmerica
75
CITY OF SUNNY ISLES BEACH, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS -
RETIREE HEALTH INSURANCE SUBSIDY PROGRAM
(UNAUDITED)
September 30,
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
Contractually required City contribution
$ 67,797
$ 50,049
$ 44,977
$ 41,507
$ 37,808
$ 34,351
$ 31,053
$ 30,016
$ 21,543
$ 17,388
Contributions in relation to the contractually
required contribution
67,797
50,049
44,977
41,507
37,808
34,351
31,053
30,016
21,543
17,388
Contribution deficiency (excess.
$ --
$ --
$ --
$ --
$ --
$ --
$ --
$ --
$ --
$ --
City of Sunny Isles Beach's covered payroll
$ 19,562,807
$ 17,415,941
$ 15,996,014
$ 15,723,425
$ 15,063,697
$ 14,745,632
$ 13,987,180
$ 13,608,825
$ 13,000,622
$ 12,258,101
Contributions as a percentage ofcovered payroll
0.35%
0.29%
0.28%
0.26%
0.25%
0.23%
0.22%
0.22%
0.17%
0.14%
This schedule is presented as required by accounting principles generally accepted in the United States ofAmerica
76
OTHER SUPPLEMENTARY INFORMATION
CITY OF SUNNY ISLES BEACH, FLORIDA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2023
Street
Maintenance and
Construction Building Public Art
Fund Fund Trust Fund Total
Assets:
165,721
--
-- 165,721
Total Deferred Inflows of Resources
Cash and cash equivalents
$ 1,023,326
$ 5,235,019
$ 787,267
$ 7,045,612
Investments
777,372
3,958,884
590,663
5,326,919
Receivables, net
370,486
5,827
--
376,313
Interest receivable
4,350
22,251
3,346
29,947
Inventory
6,760
--
--
6,760
Prepaids
120
120
--
240
--
--
1,376,685 1,376,685
Total Assets
$ 2,182,414
$ 9,222,101
$ 1,381,276
$ 12,785,791
Liabilities:
1,756,837
7,286,613
1,376,685 10,420,135
Accounts payable
$ 218,160
$ 93,560
4,481
$ 316,201
Accrued liabilities
41,696
183,607
110
225,413
Unearned revenue
--
1,658,321
--
1,658,321
Total Liabilities
259,856
1,935,488
4,591
2,199,935
Deferred Inflows of Resources:
Unavailable revenue - taxes
165,721
--
-- 165,721
Total Deferred Inflows of Resources
165,721
--
-- 165,721
Fund Balances:
Nonspendable:
Inventory
6,760
--
-- 6,760
Prepaids
120
120
-- 240
Restricted for:
Building
--
7,286,493
-- 7,286,493
Public art
--
--
1,376,685 1,376,685
Transportation
1,749,957
--
-- 1,749,957
Total Fund Balances
1,756,837
7,286,613
1,376,685 10,420,135
Total Liabilities, Deferred Inflow of
Resources, and Fund Balances
$ 2,182,414
$ 9,222,101
$ 1,381,276 $ 12,785,791
77
CITY OF SUNNY ISLES BEACH, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
78
Street
Maintenance and
Construction
Building
Public Art
Fund
Fund
Trust Fund
Total
Revenues:
Intergovernmental
$ 1,796,281
$ --
$ --
$ 1,796,281
Licenses and permits
6,995
3,124,906
--
3,131,901
Charges for services
--
39,956
--
39,956
Investment income
56,868
258,894
39,386
355,148
Miscellaneous
4,227
7
--
4,234
Total Revenues
1,864,371
3,423,763
39,386
5,327,520
Expenditures:
Current:
General government
--
4,307,596
--
4,307,596
Cultural and human services
--
--
11,701
11,701
Transportation
2,346,493
--
--
2,346,493
Capital outlay
615,911
102,100
65,940
783,951
Debt service:
Principal
--
5,090
--
5,090
Interest
--
594
--
594
Total Expenditures
2,962,404
4,415,380
77,641
7,455,425
Excess (Deficiency) of Revenues
Over Expenditures
(1,098,033)
(991,617)
(38,255)
(2,127,905)
Other Financing Sources (Uses):
Proceeds from sale of capital assets
8,600
550
--
9,150
Subscription acquired
--
21,072
--
21,072
Transfers in
500,000
--
--
500,000
Transfers out
(108,477)
--
--
(108,477)
Total Other Financing Sources (Uses)
400,123
21,622
--
421,745
Net Change in Fund Balances
(697,910)
(969,995)
(38,255)
(1,706,160)
Fund Balances - Beginning
2,454,747
8,256,608
1,414,940
12,126,295
Fund Balances - Ending
$ 1,756,837
$ 7,286,613
$ 1,376,685
$ 10,420,135
78
CITY OF SUNNY ISLES BEACH, FLORIDA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL - STREET MAINTENANCE AND CONSTRUCTION FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
Revenues:
Intergovernmental
Licenses and permits
Investment income
Miscellaneous revenue
Total Revenues
Expenditures:
Transportation
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Budgeted Amounts
Original Final
Actual
Amounts Variance
$ 1,856,788
$ 1,808,048
$ 1,796,281 $
(11,767)
1,000
1,000
6,995
5,995
3,000
53,000
56,868
3,868
--
--
4,227
4,227
1,860,788
1,862,048
1,864,371
2,323
2,529,393
2,672,010
2,346,493
325,517
141,500
828,700
615,911
212,789
2,670,893
3,500,710
2,962,404
538,306
(810,105) (1,638,662) (1,098,033) 540,629
Other Financing Sources (Uses):
Proceeds from sale of capital assets --
Transfers in 500,000
Transfers out --
Appropriations of prior year's fund balance 310,105
Total Other Financing Sources (Uses) 810,105
Net Change in Fund Balance $ --
-- 8,600 8,600
500,000 500,000 --
-- (108,477) (108,477)
1,138,662 -- (1,138,662)
1,638,662 400,123 (1,238,539)
$ -- $ (697,910) $ (697,910)
79
CITY OF SUNNY ISLES BEACH, FLORIDA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET TO ACTUAL - BUILDING FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
Expenditures:
General government
Budgeted Amounts
Actual
4,307,596
901,415
Original
Final
Amounts
Variance
Revenues:
Principal
--
--
5,090
Licenses and permits
$ 3,543,762
$ 1,743,762
$ 3,124,906
$ 1,381,144
Charges for services
35,000
35,000
39,956
4,956
Investment income (loss)
20,000
220,000
258,894
38,894
Miscellaneous revenue
--
--
7
7
2,454,798
Other Financing Sources (Uses):
Total Revenues
3,598,762
1,998,762
3,423,763
1,425,001
Expenditures:
General government
5,017,459
5,209,011
4,307,596
901,415
Capital outlay
235,500
236,166
102,100
134,066
Principal
--
--
5,090
(5,090)
Interest
--
--
594
(594)
Total Expenditures
5,252,959
5,445,177
4,415,380
1,029,797
Excess (Deficiency) of Revenues
Over Expenditures
(1,654,197)
(3,446,415)
(991,617)
2,454,798
Other Financing Sources (Uses):
Proceeds from sale of capital assets
--
--
550
550
Subscription acquired
--
--
21,072
21,072
Appropriations of prior year's fund balance
1,654,197
3,446,415
--
(3,446,415)
Total Other Financing Sources (Uses)
1,654,197
3,446,415
21,622
(3,424,793)
Net Change in Fund Balance
$ --
$ --
$ (969,995)
$ (969,995)
80
CITY OF SUNNY ISLES BEACH, FLORIDA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL - GENERAL CAPITAL PROJECTS FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
Revenues:
Intergovernmental
Charges for services
Investment income (loss)
Miscellaneous
Total Revenues
Expenditures:
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Budgeted Amounts
Original Final
$ 2,000,000 $ 2,000,000
40,000 40,000
70,000 470,000
2,110,000 2,510,000
Actual
Amounts Variance
$ -- $ (2,000,000)
313,774 273,774
523,166 53,166
24,000 24,000
860,940 (1,649,060)
26,726,614
26,163,852
6,681,838
19,482,014
26,726,614
26,163,852
6,681,838
19,482,014
(24,616,614)
(23,653,852)
(5,820,898)
17,832,954
Other Financing Sources (Uses):
Transfers in 1,785,000
Appropriations of prior year's fund balance 22,831,614
Total Other Financing Sources (Uses) 24,616,614
Net Change in Fund Balance $ --
3,035,000 108,477 (2,926,523)
20,618,852 -- (20,618,852)
23,653,852 108,477 (23,545,375)
$ -- $ (5,712,421) $ (5,712,421)
81
CITY OF SUNNY ISLES BEACH, FLORIDA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL - PUBLIC ART TRUST FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
Revenues:
Investment income (loss)
Total Revenues
Expenditures:
Culture and human services
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Budgeted Amounts
Actual
Original
Final
Amounts
Variance
$ 3,500
$ 28,500
$ 39,386
$ 10,886
3,500
28,500
39,386
10,886
65,000
85,455
11,701
73,754
150,000
225,000
65,940
159,060
215,000
310,455
77,641
232,814
(211,500)
(281,955)
(38,255)
243,700
Other Financing Sources (Uses):
Appropriations of prior year's fund balance 211,500 281,955 -- (281,955)
Total Other Financing Sources (Uses) 211,500 281,955 -- (281,955)
Net Change in Fund Balance $ -- $ -- $ (38,255) $ (38,255)
82
STATISTICAL SECTION
CITY OF SUNNY ISLES BEACH, FLORIDA
STATISTICAL SECTION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
This part of the City's ACFR presents detailed information as a context for understanding what
the information in the financial statements, note disclosures and required supplementary
information says about the City's overall financial health.
Contents
Financial Trends: These schedules contain trend information to help the reader understand how
the City's financial performance and well-being have changed over time.
Net Position by Component
Changes in Net Position
Fund Balances of Governmental Funds
Changes in Fund Balances of Governmental Funds
General Governmental Tax Revenues by Source
Revenue Capacity: These schedules contain information to help the reader assess the City's
most significant local revenue source, the property tax.
Assessed Value and Estimated Actual Value of Taxable Property
Property Tax Rates
Principal Property Taxpayers
Property Tax Levies and Collections
Debt Capacity: These schedules present information to help the reader assess the affordability
of the City's current levels of outstanding debt and its ability to issue additional debt in the
future.
Ratios of Outstanding Debt by Type
Direct and Overlapping Governmental Activities Debt
Legal Debt Margin Information
Pledged Revenue Coverage
Demographic and Economic Information:
indicators to help the reader understand the
activities take place.
Demographic and Economic Statistics
Principal Employers
These schedules offer demographic and economic
environment within which the City's financial
Operating Information: These schedules contain service and infrastructure data to help the
reader understand how the information in the City's financial report related to the services the
City provides and the activities it performs.
Full -Time Equivalent City Government Employees by Function
Operating Indicators by Function
Capital Asset Statistics by Function
City of Sunny Isles Beach, Florida
Net Position by Component
$ 13,528 $
14,074 $
14,729 $
14,838
Last Ten Fiscal Years
(Accrual Basis of Accounting)
$ 134,619 $
158,027 $
181,499 $
213,482
(Amounts Expressed in Thousands)
11,126
11,709
13,006
13,425
Unrestricted
2014(l)
2015
2016
2017
Governmental activities:
Total primary
Net investment in capital assets
$ 122,083
$ 145,182
$ 167,505
$ 199,469
Restricted
11,126
11,709
13,006
13,425
Unrestricted
28,634
26,418
32,269
33,175
Total governmental
activities, net position $ 161,843 $ 183,309 $ 212,780 $ 246,069
Business -type activities:
Net investment in capital assets $ 12,536 $ 12,845 $ 13,994 $ 14,013
Restricted - - - -
Unrestricted 992 1,229 735 825
Total business -type
activities, net position
$ 13,528 $
14,074 $
14,729 $
14,838
Primary government:
Net investment in capital assets
$ 134,619 $
158,027 $
181,499 $
213,482
Restricted
11,126
11,709
13,006
13,425
Unrestricted
29,626
27,647
33,004
34,000
Total primary
government, net position
$ 175,371 $
197,383 $
227,509 $
260,907
(1) Fiscal year 2014 unrestricted net assets have been restated due to implementation of GASB 68.
83
Table 1
84
2018
2019
2020
2021
2022
2023
$
205,859
$
209,918
$
219,796
$
221,698
$
237,385
$
242,686
14,091
15,220
15,886
16,922
17,563
14,474
31,328
32,808
22,384
58,032
51,725
55,240
$
251,278
$
257,946
$
258,066
$
296,652
$
306,673
$
312,400
$
13,985
$
13,960
$
14,261
$
14,451
$
14,552
$
14,530
928
1,227
1,532
1,693
1,907
2,342
$
14,913
$
15,187
$
15,793
$
16,144
$
16,459
$
16,872
$
219,844
$
223,878
$
234,057
$
236,149
$
251,937
$
257,216
14,091
15,220
15,886
16,922
17,563
14,474
32,256
34,035
23,916
59,725
53,632
57,582
$
266,191
$
273,133
$
273,859
$
312,796
$
323,132
$
329,272
84
City of Sunny Isles Beach, Florida
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
(Amounts Expressed in Thousands)
Expenses:
Governmental activities:
General government
$
7,845
$
8,304
$
8,747
$
9,684
Public safety
11,023
11,412
13,564
14,504
Physical Environment
3,671
4,550
3,168
4,038
Culture and human services
4,135
4,776
5,491
6,452
Transportation
1,551
1,512
2,201
1,796
Interest on long-term debt
1,549
1,446
1,301
1,165
Total governmental
activities expenses
$
29,774
$
32,000
$
34,472
$
37,639
Business -type activities:
Stormwater Management
$
729
$
884
$
883
$
989
Total business -type
activities expenses
729
884
883
989
Total primary
government expenses
$
30,503
$
32,884
$
35,355
$
38,628
Program Revenues:
Governmental activities:
Charges for services:
General government
$
8,944
$
19,587
$
29,578
$
34,255
Public Safety
778
1,137
975
1,004
Physical environment
-
-
-
-
Culture and human services
1,247
1,303
1,224
1,235
Operating grants and contributions
1,096
1,075
1,062
1,099
Capital grants and contributions
90
397
203
449
Total governmental activities
program revenues
$
12,155
$
23,499
$
33,042
$
38,042
Business -type activities:
Charges for services:
Stormwater
$
976
$
997
$
969
$
1,005
Operating grants and contributions
84
86
85
88
Capital grants and contributions
-
321
179
-
Total business -type activities
program revenues
1,060
1,404
1,233
1,093
Total primary government
program revenues
$
13,215
$
24,903
$
34,275
$
39,135
85
Table 2
2018 2019 2020 2021 2022 2023
$
10,332
$
10,358
$
10,709
$
9,430
$
11,475
$
13,833
1,533
14,287
834
15,012
807
16,066
1,411
13,795
1,106
15,377
7,219
20,977
1,067
5,574
-
5,414
-
6,692
$ 13,592 $
5,671
11,232 $
8,379
22,282 $
8,379
7,915
8,985
9,081
7,034
10,420
10,419
1,729
2,112
2,524
2,353
2,372
2,835
819
726
644
554
529
451
$
40,656
$
42,607
$
45,716
$
38,837
$
48,552
$
56,894
$
1,021
$
978
$
922
$
850
$
917
$
1,044
1,021
978
922
850
917
1,044
$
41,677
$
43,585
$
46,638
$
39,687
$
49,469
$
57,938
$ 8,534 $
9,172 $
7,742 $
33,959 $
12,427 $
9,774
1,047
1,207
1,550
1,593
1,829
1,977
1,533
1,380
834
302
807
1,071
1,411
1,440
1,106
1,241
7,219
6,241
1,067
97
-
1,233
-
-
$ 13,592 $
13,296 $
11,232 $
38,328 $
22,282 $
19,063
$ 1,004 $
1,032 $
1,043 $
1,085 $ 1,176 $ 1,308
86
86
75
78 - -
-
-
265
35 - -
1,090
1,118
1,383
1,198 1,176 1,308
$ 14,682 $
14,414 $
12,615 $
39,526 $ 23,458 $ 20,371
86
City of Sunny Isles Beach, Florida
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
(Amounts Expressed in Thousands)
Net (expense)/revenue
Governmental activities
$
(17,619)
$
(8,501)
$
(1,430)
$
(24,993)
Business -type activities
331
520
350
105
Total primary government
-
-
-
-
net expenses
$
(17,288)
$
(7,981)
$
(1,080)
$
(24,888)
Total business -type activities
25
General Revenues and Other
26
305
5
Total primary government
$
27,958
Changes in Net Position
29,993
$
31,206
$
32,892
Change in Net Position
Governmental activities:
Governmental activities
$
10,314
Taxes:
21,466
$
29,471
$
33,290
Business -type activities
356
Property taxes
$
17,906
$
19,186
$
20,789
$
23,082
Utility taxes
22,012
4,381
30,126
4,376
33,399
4,462
4,490
Franchise taxes
1,285
1,340
1,364
1,260
Impact fees
301
729
888
809
Intergovernmental
2,031
2,162
2,239
2,265
Investment income (loss)
1,559
1,564
1,047
658
Miscellaneous
404
606
336
277
Gain on disposal of capital assets
66
4
76
46
Transfers
-
-
(300)
-
Total governmental activities
$
27,933
$
29,967
$
30,901
$
32,887
Business -type activities:
Intergovernmental
$
-
$
-
$
-
$
-
Investment income (loss)
25
26
5
5
Miscellaneous
-
-
-
-
Transfers
-
-
300
-
Total business -type activities
25
26
305
5
Total primary government
$
27,958
$
29,993
$
31,206
$
32,892
Change in Net Position
Governmental activities
$
10,314
$
21,466
$
29,471
$
33,290
Business -type activities
356
546
655
109
Total primary government
$
10,670
$
22,012
$
30,126
$
33,399
(1) The increase in the total primary government's changes in net position in fiscal year 2023 is explained in the
Management's Discussion and Analysis.
87
Table 2
2018 2019 2020 2021 2022 2023
$ (27,908) $ (28,890) $ (33,922) $ (375) $ (26,269) $ (37,831)
$ (27,839) $ (28,750) $ (33,461) $ (25) $ (26,010) $ (37,567)
$
24,292
$
23,438
$
23,878
$
24,875
$
25,100
$
26,376
4,569
4,550
4,469
5,262
5,403
6,054
1,545
1,480
1,295
2,774
3,340
3,780
5
421
563
134
12
13
2,395
2,722
2,373
4,817
3,622
3,606
590
3,073
1,782
660
(1,745)
3,295
528
301
316
510
544
406
37
95
57
63
15
27
-
(100)
(128)
-
-
-
$
33,961
$
35,980
$
34,605
$
39,095
$
36,291
$
43,557
$
-
$
-
$
-
$
-
$
86
$
88
7
33
17
1
(30)
61
-
100
128
-
-
-
7
133
145
1
56
149
$
33,968
$
36,113
$
34,750
$
39,096
$
36,347
$
43,706
$
6,897
$
6,669
$
119
$
38,586
$
10,021
$
5,726
76
273
607
351
315
412
$
6,973
$
6,942
$
726
$
38,937
$
10,336
$
6,138 (1)
88
City of Sunny Isles Beach, Florida
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(Amounts Expressed in Thousands)
2014 2015 2016 2017
General Fund
Committed to:
Hurricane/Emergency and
Disaster recovery operating reserves
$
10,000
$
10,000
$
10,000
$
10,000
Non -spendable:
Prepaids
24
37
1,120
869
Assigned to:
Fiscal stability reserve
-
-
-
-
Unassigned
9,182
12,066
17,867
8,354
Total General Fund
$
19,206
$
22,103
$
28,987
$
19,223
All other governmental funds
Restricted for:
Law enforcement
$
9,242
$
8,435
$
8,081
$
6,979
Capital improvements
-
-
-
-
Building
865
2,311
3,648
5,231
Public art
-
34
66
78
Transportation
375
929
1,210
1,137
Assigned to:
Subsequent year's budget
724
-
-
-
Capital projects
22,992
18,391
19,018
33,012
Non -spendable:
Inventory
3
4
1
4
Prepaids
-
-
-
-
Long-term receivables
859
859
438
-
Unassigned
-
-
-
-
Total all other
governmental funds
$
35,060
$
30,963
$
32,462
$
46,441
89
Table 3
2018 2019 2020 2021 2022 2023
$ 10,000 $
10,000 $
10,000 $
10,000 $
10,000 $
10,000
580
664
648
739
1,235
1,323
-
-
-
-
7,944
9,436
16,599
24,024
29,325
39,565
42,412
55,648
$ 27,179 $
34,688 $
39,973 $
50,304 $
61,591 $
76,407
$ 6,704 $
6,470 $
6,267 $
6,176 $
5,443 $
4,046
5,861
6,821
7,436
8,433
8,257
-
345
338
1,647
1,534
1,415
7,286
1,181
1,591
536
779
2,448
1,377
1,750
27,570
24,872
14,586
38,056
20,988
-
15,275
4
3
2
17
6
-
-
-
-
2
7
-
-
-
-
-
2
$ 41,665 $
40,095 $
30,474 $
54,995 $
38,559 $
29,758
90
City of Sunny Isles Beach, Florida
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(Amounts Expressed in Thousands)
Expenditures
General government
2014
2015
2016
2017
Revenues
10,264
10,908
11,402
11,713
Real and personal property taxes
$ 17,907
$ 19,186
$ 20,792
$ 23,064
Utility taxes
4,381
4,303
4,462
4,490
Franchise fees
1,285
1,340
1,364
1,260
Impact fees
3,123
12,826
22,204
26,375
Intergovernmental revenues
3,128
3,612
3,507
3,829
Licenses and permits
4,012
4,600
5,244
5,250
Charges for services
3,899
4,034
4,419
4,754
Fines and forfeitures
415
575
466
334
Investment income (loss)
1,420
1,725
1,167
658
Miscellaneous revenues
815
1,337
870
987
Total revenues
40,385
53,538
64,495
71,001
Expenditures
General government
7,448
7,968
8,183
9,070
Public safety
10,264
10,908
11,402
11,713
Physical environment
1,726
1,717
1,304
1,910
Culture and human services
4,023
4,529
4,884
5,690
Transportation
1,538
1,522
1,570
1,492
Capital outlay
14,517
23,422
23,812
23,024
Debt service
(3,894)
(3,681)
(1,143)
(8,271)
Principal
3,121
3,223
3,324
12,622
Interest and fiscal charges
1,636
1,535
1,433
1,345
Total expenditures
44,273
54,824
55,912
66,866
Excess (deficiency)
of revenues over expenditures
(3,888)
(1,286)
8,583
4,135
Other financing sources (uses)
Proceeds from sale of capital assets
66
4
55
46
Insurance recoveries
30
81
46
35
Contributions
-
-
-
-
Lease (right -of -use asset) acquired
-
-
-
-
Subscriptions acquired
-
-
-
-
Transfers in
3,894
3,681
843
8,271
Transfers out
(3,894)
(3,681)
(1,143)
(8,271)
Total other financing
sources (uses)
96
85
(199)
81
Net change in fund balance
(3,792)
(1,201)
8,384
4,216
Debt service as a percentage
ofnoncapital expenditures
15.9%
15.1%
14.8%
31.9%
(1) Impact Fees starting with fiscal year 2019 are classified under Charges for Services.
(2) The following calculation excludes capital outlay that was not capitalized.
G]
Table 4
2018
2019
2020
2021
2022
2023
$ 24,281
$ 23,512
$ 23,881
$ 24,775
$ 25,100
$ 26,376
4,569
4,550
4,469
5,262
5,404
6,054
1,545
1,480
1,295
2,774
3,340
3,780
762
-
-
-
-
- (1)
4,605
4,059
3,416
7,208
10,576
9,633
4,556
5,194
4,977
5,180
4,720
3,955
4,586
5,850
4,736
29,653
9,975
8,092 (1)
705
634
588
687
1,145
983
590
3,073
1,782
660
(1,745)
3,295
1,132
1,033
691
1,009
496
239
47,331
49,385
45,835
77,208
59,011
62,407
9,046
9,491
9,319
9,591
11,165
11,942
12,236
12,661
12,992
13,458
14,281
16,997
2,067
2,185
2,363
2,521
3,260
4,409
6,677
7,155
6,764
6,284
7,430
7,203
1,542
1,633
1,847
1,753
2,074
2,346
9,136
6,936
13,480
5,457
22,708
11,355
2,539
2,607
2,681
2,765
2,863
3,351
44,093
43,479
50,175
42,470
64,333
58,085
3,238
5,906
(4,340)
34,738
(5,322)
4,322
37
96
57
63
62
65
107
36
75
51
39
159
(200)
-
-
-
-
-
-
-
-
72
23
-
-
-
-
-
1,446
601
1,144
1,212
1,270
1,579
608
(601)
(1,244)
(1,340)
(1,270)
(1,579)
(608)
(56)
32
4
114
173
1,693
3,182
5,938
(4,336)
34,852
(5,149)
6,015
9.7%
9.4%
9.3%
9.1%
8.1%
8.1% (2)
92
City of Sunny Isles Beach, Florida Table 5
General Governmental Tax Revenues by Source
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(Amounts Expressed in Thousands)
Fiscal Year
Local
Ended
Property
Option
Utility
Franchise
September 30,
Taxes
Gas Tax
Taxes
Fees
Total
2014
$ 17,907
$ 214
$ 4,381
$ 1,285
$ 23,787
2015
19,186
222
4,303
1,340
25,051
2016
20,792
220
4,462
1,364
26,838
2017
23,064
228
4,490
1,260
29,042
2018
24,281
223
4,569
1,545
30,618
2019
23,512
225
4,550
1,480
29,767
2020
23,881
199
4,469
1,295
29,844
2021
24,775
209
5,262
2,774
33,020
2022
25,100
227
5,404
3,340
34,071
2023
26,376
232
6,054
3,780
36,442
93
City of Sunny Isles Beach, Florida
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Note: Property in the City is reassessed each year. Property is assessed at actual value; therefore,
the values are equal to actual values. Tax rates are per $1,000 of assessed value.
Source: Miami -Dade County Property Appraiser's Office.
94
Estimated Actual Value
Fiscal Year
Ended
Real
Personal
Assessment
September 30,
Property
Property
Total
Reductions
2014
$ 8,322,026,705
$ 79,320,111 $
8,401,346,816
$ 1,173,050,570
2015
9,945,175,461
73,814,320
10,018,989,781
1,956,569,243
2016
11,199,576,151
70,606,300
11,270,182,451
2,098,347,422
2017
12,233,962,798
75,870,088
12,309,832,886
1,995,380,305
2018
12,800,344,529
79,644,983
12,879,989,512
1,410,925,588
2019
12,132,420,239
94,330,403
12,226,750,642
965,610,914
2020
12,765,117,248
98,161,781
12,863,279,029
938,304,561
2021
12,367,495,507
105,954,121
12,473,449,628
581,417,469
2022
13,509,761,737
104,607,977
13,614,369,714
592,936,803
2023
15,354,036,419
109,142,506
15,463,178,925
1,443,401,963
Note: Property in the City is reassessed each year. Property is assessed at actual value; therefore,
the values are equal to actual values. Tax rates are per $1,000 of assessed value.
Source: Miami -Dade County Property Appraiser's Office.
94
Table 6
95
Taxable
Total
Value as a
Total Taxable
Direct
Percentage of
Assessed
Less:
Assessed
Tax
Estimated
Valuation
Tax Exemption
Value
Rate
Actual Value
$ 7,228,296,246
$ 330,231,037
$ 6,898,065,209
2.7000
82.11%
8,062,420,538
339,179,322
7,723,241,216
2.6000
77.09%
9,171,835,029
332,464,180
8,839,370,849
2.5000
78.43%
10,314,452,581
345,576,798
9,968,875,783
2.4000
80.98%
11,469,063,924
356,429,493
11,112,634,431
2.3000
86.28%
11,261,139,728
372,339,928
10,888,799,800
2.2000
89.06%
11,924,974,468
364,654,289
11,560,320,179
2.2000
89.87%
11,892,032,159
369,313,087
11,522,719,072
2.2000
92.38%
13,021,432,911
377,797,353
12,643,635,558
2.1000
92.87%
14,019,776,962
400,248,473
13,619,528,489
2.0000
88.08%
95
City of Sunny Isles Beach, Florida
Property Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
Source: Miami -Dade County Property Appraiser's Office.
96
City of Sunny Isles Beach
Miami -Dade County
School District
Tax
Debt
Total
Debt
Total
Debt
Total
Fiscal
Roll
Operating Service
City
Operating
Service
County
Operating
Service
School
Year
Year
Millage Millage
Millage
Millage
Millage
Millage
Millage
Millage
Millage
2014
2013
2.7000
2.7000
4.7035
0.4220
5.1255
7.6440
0.3330
7.9770
2015
2014
2.6000
2.6000
4.6669
0.4500
5.1169
7.7750
0.1990
7.9740
2016
2015
2.5000
2.5000
4.6669
0.4500
5.1169
7.4130
0.1990
7.6120
2017
2016
2.4000
2.4000
4.6669
0.4000
5.0669
7.1380
0.1840
7.3220
2018
2017
2.3000
2.3000
4.6669
0.4000
5.0669
6.7740
0.2200
6.9940
2019
2018
2.2000
2.2000
4.6669
0.4644
5.1313
6.5040
0.2290
6.7330
2020
2019
2.2000
2.2000
4.6669
0.4780
5.1449
7.0250
0.1230
7.1480
2021
2020
2.2000
2.2000
4.6669
0.4780
5.1449
6.9360
0.1930
7.1290
2022
2021
2.1000
2.1000
4.6669
0.5075
5.1744
6.8290
0.1800
7.0090
2023
2022
2.0000
2.0000
4.6202
0.4853
5.1055
6.4240
0.1650
6.5890
Source: Miami -Dade County Property Appraiser's Office.
96
Table 7
Overlapping Rates
State
Special Districts
South
Florida
Florida
Total
Water
Inland
Total
Total
Direct and
Everglades
Management
Navigation
Okeechobee
State
Children's
Fire and
Fire
District's
Overlapping
Project
District
District
Basin
Millage
Trust
Rescue
Debt
Library
Millage
Rates
0.0587
0.3523
0.0345
0.0345
0.4800
0.5000
2.4496
0.0127
0.1725
3.1348
19.4173
0.0548
0.1577
0.0345
0.0345
0.2815
0.5000
2.4207
0.0114
0.2840
3.2161
19.1885
0.0506
0.1459
0.0320
0.1586
0.3871
0.5000
2.4207
0.0086
0.2840
3.2133
18.8293
0.0471
0.1359
0.0320
0.1477
0.3627
0.5000
2.4207
0.0075
0.2840
3.2122
18.3638
0.0441
0.1275
0.0320
0.1384
0.3420
0.4673
2.4207
0.0075
0.2840
3.1795
17.8824
0.0417
0.1209
0.0320
0.1310
0.3256
0.4415
2.4207
-
0.2840
3.1462
17.5361
0.0397
0.1152
0.0320
0.1246
0.3115
0.4680
2.4207
0.2840
3.1727
17.9771
0.0380
0.1103
0.0320
0.1192
0.2995
0.4507
2.4207
0.2840
3.1554
17.9288
0.0365
0.1061
0.0320
0.1146
0.2892
0.5000
2.4207
0.2840
3.2047
17.7773
0.0327
0.0948
0.0320
0.1026
0.2621
0.5000
2.3965
0.2812
3.1777
17.1343
97
City of Sunny Isles Beach, Florida
Principal Property Taxpayers
Current Year and Nine Years Ago
(Amounts Expressed in Thousands)
Totals
$ 724,870
Source: Miami -Dade County, Tax Collector's Office.
5.3%
U-
2023
Percentage of
Taxable
Total Taxable
Assessed
Assessed
Taxpayer
Value
Rank
Value
A3 Amenities LLC
$ 149,806
1
1.1%
Intercoastal Yacht Club LLC
132,545
2
1.0%
La Playa Beach Associates LLC
122,250
3
0.9%
Beach Place Lincoln Spe LLC
87,700
4
0.6%
Dezer Blue Grass LLC
47,051
5
0.4%
Dezer Hotel Management LTD
44,363
6
0.3%
Century Towers Association
42,630
7
0.3%
Gables Investors Inc.
35,001
8
0.3%
Publix Super Mkts Inc.
34,994
9
0.3%
18100 Collins Ave Shopping Center
28,530
10
0.2%
Totals
$ 724,870
Source: Miami -Dade County, Tax Collector's Office.
5.3%
U-
2014
Taxable
Assessed
Taxpayer Value Rank
Table 8
Percentage of
Total Taxable
Assessed
Value
Intercoastal Yacht Club LLC
$ 82,710
1
1.3%
Sunny Isles Beach Associates LLC
47,172
2
0.8%
18555 Developers LLC
35,999
3
0.6%
Century Towers Association
35,075
4
0.6%
TB Ocean Club Land LLC
32,961
5
0.5%
Florida Power & Light Company
32,163
6
0.5%
Westgate Miami Beach LTD
28,178
7
0.5%
JTC15 Sunny Isles LP
28,061
8
0.5%
Gilco Realty LC & M&R LLC
25,877
9
0.4%
LPLA Partners LP
24,365
10
0.4%
$ 372,561
6.1%
City of Sunny Isles Beach, Florida
Property Tax Levies and Collections
Last Ten Fiscal Years
Table 9
Percentage
of Total
Tax
Collections
to Tax
Levy
98.54%
97.61%
95.67%
96.40%
100.13%
101.16%
98.77%
99.48%
99.57%
100.73%
100
Current
Delinquent
Fiscal
Total Tax
Taxes
Percentage
Tax
Total Tax
Year
Levy (1)
Collections
Collected
Collections
Collections
2014
$ 18,188,192
$ 17,190,326
94.51%
$ 732,192
$ 17,922,518
2015
19,655,961
18,682,752
95.05%
503,417
19,186,169
2016
21,733,646
20,583,693
94.71%
208,208
20,791,901
2017
23,925,302
22,428,777
93.75%
635,194
23,063,971
2018
24,248,897
23,416,494
96.57%
864,296
24,280,789
2019
23,241,919
22,281,198
95.87%
1,230,586
23,511,784
2020
24,178,156
22,592,546
93.44%
1,288,730
23,881,276
2021
24,903,420
23,561,147
94.61%
1,213,506
24,774,653
2022
25,208,506
24,088,320
95.56%
1,011,882
25,100,202
2023
26,185,411
25,393,282
96.97%
982,222
26,375,504
Source:
Miami -Dade County,
Tax Collector's
Office and the
City of Sunny Isles
Beach.
(1)
Tax levy, net of discount
Table 9
Percentage
of Total
Tax
Collections
to Tax
Levy
98.54%
97.61%
95.67%
96.40%
100.13%
101.16%
98.77%
99.48%
99.57%
100.73%
100
City of Sunny Isles Beach, Florida
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(Amounts expressed in thousands, except per capita amount)
Governmental Activities
General
Fiscal Obligation Revenue Promissory Leases
Year Bonds Bonds Note (Right -to -use Assets)
2014 $ - $ 29,917 $ 16,450 $ -
2015 - 27,508 15,637 -
2016 - 25,028 14,793 -
2017 - 13,287 13,911 -
2018 - 11,666 12,993 -
2019 - 10,015 12,037 -
2020 - 8,327 11,043 -
2021 - 6,600 10,005 -
2022 - 4,832 8,925 59
2023 - 3,020 7,801 60
Note: Details regarding the City's outstanding debt can be found
in the notes to the financial statements.
(1) See the Schedule of Demographic and Economic Statistics
for personal income and population data.
101
Subscriptions
(Right -to -Use Assets)
1,054
Business -Type
Activities
11,934
Table 10
Percentage
of Personal
Total
Outstanding Notes
Primary
Bonds Payable
Government
$ 3,817 $ -
$ 50,184
3,398 -
46,543
2,971 -
42,792
2,537 -
29,735
2,094 -
26,753
1,643 -
23,695
1,185 -
20,555
717 -
17,322
241 -
14,057
11,934
Table 10
Percentage
of Personal
Per
Income
Capita (1)
5.81%
$ 2,310
5.06%
2,121
4.48%
1,940
2.94%
1,337
2.58%
1,189
2.04%
1,019
1.57%
861
1.34%
765
1.08%
620
0.76%
524
102
City of Sunny Isles Beach, Florida Table 11
Direct and Overlapping Governmental Activities Debt
As of September 30, 2023
(Amounts Expressed in Thousands)
Jurisdiction
Debt repaid with property taxes:
Miami -Dade County $ 2,336,015 3.75% $ 87,601
Miami -Dade School District Board 3,120 3.75% 117
Subtotal, overlapping debt 87,718
City of Sunny Isles Beach $ 11,934 11,934
Total direct and overlapping debt $ 99,652
Source: Miami -Dade County, Florida, Accounting Division and the School Board
of Miami -Dade County.
(1) Debt outstanding for Miami -Dade County is unaudited.
(2) Based on ratio of assessed taxable value.
103
Amount
Percentage
Applicable
Applicable to
to City of
Net Debt City of Sunny
Sunny
Outstanding (1) Isles Beach (2)
Isles Beach
Debt repaid with property taxes:
Miami -Dade County $ 2,336,015 3.75% $ 87,601
Miami -Dade School District Board 3,120 3.75% 117
Subtotal, overlapping debt 87,718
City of Sunny Isles Beach $ 11,934 11,934
Total direct and overlapping debt $ 99,652
Source: Miami -Dade County, Florida, Accounting Division and the School Board
of Miami -Dade County.
(1) Debt outstanding for Miami -Dade County is unaudited.
(2) Based on ratio of assessed taxable value.
103
City of Sunny Isles Beach, Florida Table 12
Legal Debt Margin Information
September 30, 2023
The City Charter allows revenue bonds to be issued when authorized by the City Commission. The City
Charter and Florida Statute provide no limit on the amount of the general obligation debt attainable.
104
City of Sunny Isles Beach, Florida
Table 13
Pledged Revenue Coverage
Last Ten Fiscal Years
(Amounts Expressed in Thousands)
Revenue Bonds and Notes Payable
Fiscal Total
Debt Service
Year Revenue
Principal Interest
Coverage
2014 $ 1,528
$ 576 $
221
1.92
2015 1,596
590
207
2.00
2016 1,662
604
193
2.09
2017 1,655
618
178
2.08
2018 1,740
633
173
2.16
2019 1,767
648
178
2.14
2020 1,538
663
160
1.87
2021 1,909
679
140
2.33
2022 2,377
695
120
2.92
2023 2,417
729
78
3.00
Note: Details regarding the City's outstanding debt can be found in the notes
to the financial statements.
105
City of Sunny Isles Beach, Florida Table 14
Demographic and Economic Statistics
Last Ten Fiscal Years
Personal
Income
(amounts Per Capita School
Fiscal Population expressed Income Median Enrollment Unemployment
Year (1) in thousands) (2) Age (3) (4) Rate (5)
2014
21,720 $
864,456 $
39,800
38
1,991
6.1%
2015
21,946
919,164
41,883
39
1,894
5.6%
2016
22,063
954,843
43,278
39
2,217
5.2%
2017
22,233
1,010,268
45,440
39
2,162
4.0%
2018
22,505
1,036,310
46,048
40
2,122
3.6%
2019
23,253
1,163,162
50,022
40
2,091
2.3%
2020
23,869
1,310,456
54,902
41
2,100
12.6%
2021
22,655
1,296,161
57,213
40
2,100
4.5%
2022
22,756
1,475,704
64,849
41
2,303
2.6%
2023
22,783
1,560,203
68,481
41
1,394
1.8%
(1) Furnished by Bureau of Economic and Business Research, University of Florida.
Population estimates as of April 1 st of each year.
(2) Represents per capita for Miami -Dade County as provided by the
U.S. Bureau of Economic Analysis.
(3) Represents median age for Miami -Dade County as provided by the
U.S. Census Bureau's most recent published update.
(4) Furnished by the School Board of Miami -Dade County.
(5) Furnished by the Bureau of Labor Statistics for Miami -Dade County. High unemployment rate
for 2020 due to the COVID-19 pandemic.
106
City of Sunny Isles Beach, Florida
Table 15
Principal Employers
Current Year and Nine Years Ago
2023
2014
Percentage
Percentage
of Total City
of Total City
Employer
Employees
Rank
Employment
Employer
Employees
Rank
Employment
Acqualina Management, LLC
368
1
14.7%
Trump International Resort
352
1
14.1%
Trump International Resort
307
2
12.3%
Newport Beachside Resort
330
2
13.2%
City of Sunny Isles Beach
282
3
11.3%
City of Sunny Isles Beach
263
3
10.5%
Publix
175
4
7.0%
Publix
173
4
6.9%
Newport Beachside Resort
122
5
4.9%
Marco Polo (Aventura Beach Assoc.)
136
5
5.4%
Double Tree Ocean Point Beach Club
88
6
3.5%
Marenas Resort (Le Meridien)
129
6
5.2%
Marenas Resort (Le Meridien)
86
7
3.4%
Double Tree Ocean, Point Resort
120
7
4.8%
II Mulino New York
85
8
3.4%
McDonald's
55
8
2.2%
Residence Inn by Marriott
65
9
2.6%
Denny's
50
9
2.0%
Ritz Residences
50
10
2.0%
N/A
N/A
10
N/A
Totals
1,628
65.1%
1,608
64.3%
Source: City of Sunny Isles Beach, Code Compliance
107
City of Sunny Isles Beach, Florida Table 16
Full -Time Equivalent City Government Employees by Function
Last Ten Fiscal Years
Function
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
General Government:
Commission
6
5
5
5
5
5
5
4
5
5
City Manager
3
4
5
4
4
4
3
4
3
3
City Clerk
3
3
3
2
2
2
3
3
3
3
City Attorney
4
4
4
4
5
-
-
-
-
-
Media
-
-
-
-
-
-
-
-
-
6
Finance
6
6
6
7
7
8
8
7
10
10
Human Resources
5
4
3
3
3
3
4
4
5
4
Information Technology
6
5
6
6
7
6
9
6
6
8
Building
19
19
18
19
20
21
21
18
20
19
Public Safety:
Police:
Sworn Officers
52
53
55
51
50
52
53
51
58
61
Non -Sworn Officers -Police
11
12
11
12
13
13
12
10
13
12
Non -Sworn Officers -Ocean Rescue
28
31
34
22
30
31
29
29
32
31
Physical Environment:
Community Development
11
10
12
'12
13
14
16
16
19
18
Public Works
13
12
13
12
14
15
17
17
23
26
Stormwater
2
2
2
2
2
1
1
1
3
3
Transportation
8
9
6
6
8
7
7
7
8
9
Cultural and Human Services
34
49
36
40
59
68
62
64
57
53
Total 211 228 219 207 242 249 248 240 263 269
Source: City of Sunny Isles Beach, Florida.
108
City of Sunny Isles Beach, Florida
Operating Indicators by Function
Last Ten Fiscal Years
Table 17
2020
2014
2015
2016
2017
2018
2019
Police:
8,818
10,309
17,607
15,257
0.6
0.4
Physical arrests
460
367
332
255
275
247
Parking violations
5,638
9,613
10,530
8,636
11,929
10,579
Highways and streets:
151
464
402
Street resurfacing (miles)
-
-
-
0.8
-
0.2
Potholes repaired
16
8
9
11
15
56
Culture and recreation:
Athletic field permit issued
69
41
31
32
28
32
Film permits issued
-
5
4
8
23
26
Summer camp enrollment
562
588
561
519
555
556
Source: City of Sunny Isles Beach, Florida.
Table 17
2020
2021
2022
2023
160
177
214
256
8,818
10,309
17,607
15,257
0.6
0.4
0.2
2.5
47
18
11
20
20
12
46
57
1
2
3
-
151
464
402
109
City of Sunny Isles Beach, Florida Table 18
Capital Asset Statistics by Function
Last Ten Fiscal Years
Function 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Public safety:
1
1
1
Police:
1
1
58
Stations
1
1
1
Patrol units
69
61
59
Motorcycles
5
6
6
Streets:
7.2
7.2
7.2
City maintained (miles)
7.2
7.2
7.2
FDOT maintained (miles)
3.8
3.8
3.8
Privately maintained (miles)
1.0
1.0
1.0
Streetlights:
1.0
1.0
1.0
City maintained (each)
365
365
365
FPL maintained (each)
223
223
223
Culture and recreation:
223
223
223
Parks acreage
20.2
20.2
20.2
Parks
10
10
10
Community centers
1
1
1
Storm Drain Pipes:
11
11
11
City maintained (miles)
6.75
6.75
6.75
FDOT maintained (miles)
7.86
7.86
7.86
Source: City of Sunny Isles Beach, Florida.
6.75
6.75
1
1
1
1
1
1
1
58
59
52
54
56
59
66
8
8
8
8
8
8
8
7.2
7.2
7.2
7.2
7.2
7.2
7.2
3.8
3.8
3.8
3.8
3.8
3.8
3.8
1.0
1.0
1.0
1.0
1.0
1.0
1.0
365
365
365
365
365
365
365
223
223
223
223
223
223
223
21.5
21.5
21.5
21.5
21.5
21.5
21.5
11
11
11
11
11
11
11
1
1
1
1
2
2
2
6.75
6.75
6.75
6.75
6.75
6.75
6.75
7.86
7.86
7.86
7.86
7.86
7.86
7.86
110
REPORTING SECTION
MA CUM
ACCOUNTANTS,i ADVISORS
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED
ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
The Honorable Mayor, the City Commission and City Manager
City of Sunny Isles Beach, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States (Government Auditing
Standards), the financial statements of the governmental activities, the business -type activities,
each major fund, and the aggregate remaining fund information of the City of Sunny Isles Beach,
Florida (the "City"), as of and for the fiscal year ended September 30, 2023, and the related notes
to the financial statements, which collectively comprise the City's basic financial statements, and
have issued our report thereon dated April 29, 2024.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal
control over financial reporting (internal control) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City's
internal control. Accordingly, we do not express an opinion on the effectiveness of the City's
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a
material misstatement of the City's financial statements will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of
deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses or significant deficiencies may exist that were not identified.
111
Marcum LLP / One Southeast Third Avenue / Suite 1100 / Miami, FL 33131 / Phone 305.995.9600 / marcumllp.com
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the financial statements. However, providing an opinion on compliance with
those provisions was not an objective of our audit, and accordingly, we do not express such an
opinion. The results of our tests disclosed no instances of noncompliance or other matters that are
required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
City's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
,VY a4zd4 . I -LP
Miami, FL
April 29, 2024
112
MA RCUM
ACCOUNTANTS ® ADVISORS
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR
FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER
COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
The Honorable Mayor, the City Commission and City Manager
City of Sunny Isles Beach, Florida
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Sunny Isles Beach, Florida's (the "City") compliance with the types
of compliance requirements identified as subject to audit in the OMB Compliance Supplement that
could have a direct and material effect on each of the City's major federal programs for the fiscal
year ended September 30, 2023. The City's major federal programs are identified in the summary
of auditors' results section of the accompanying schedule of findings and questioned costs.
In our opinion, the City complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on each of its major
federal programs for the fiscal year ended September 30, 2023.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in
the United States of America (GRAS); the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States
(Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards
and the Uniform Guidance are further described in the Auditors' Responsibilities for the Audit of
Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on
compliance for each major federal program. Our audit does not provide a legal determination of the
City's compliance with the compliance requirements referred to above.
113
Marcum LLP / One Southeast Third Avenue / Suite 1100 / Miami, FL 33131 / Phone 305.995.9600 / marcumllp.com
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the
design, implementation, and maintenance of effective internal control over compliance with the
requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements
applicable to the City's federal programs.
Auditors' Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an
opinion on the City's compliance based on our audit. Reasonable assurance is a high level of
assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in
accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, will always
detect material noncompliance when it exists. The risk of not detecting material noncompliance
resulting from fraud is higher than for that resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
Noncompliance with the compliance requirements referred to above is considered material if there
is a substantial likelihood that, individually or in the aggregate, it would influence the judgment
made by a reasonable user of the report on compliance about the City's compliance with the
requirements of each major federal program as a whole.
In performing an audit in accordance with GRAS, Government Auditing Standards, and the
Uniform Guidance, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material noncompliance, whether due to fraud or error, and
design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the City's compliance with the compliance
requirements referred to above and performing such other procedures as we considered
necessary in the circumstances.
Obtain an understanding of the City's internal control over compliance relevant to the audit
in order to design audit procedures that are appropriate in the circumstances and to test and
report on internal control over compliance in accordance with the Uniform Guidance, but
not for the purpose of expressing an opinion on the effectiveness of the City's internal
control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit and any significant deficiencies and material
weaknesses in internal control over compliance that we identified during the audit.
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, noncompliance with a type of
compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or a combination of deficiencies, in internal control over
114
compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program will not be prevented, or detected and corrected, on
a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance with a type of compliance
requirement of a federal program that is less severe than a material weakness in internal control
over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the
Auditor's Responsibilities for the Audit of Compliance section above and was not designed to
identify all deficiencies in internal control over compliance that might be material weaknesses or
significant deficiencies in internal control over compliance. Given these limitations, during our
audit we did not identify any deficiencies in internal control over compliance that we consider to
be material weaknesses, as defined above. However, material weaknesses or significant
deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of
our testing of internal control over compliance and the results of that testing based on the
requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other
purpose.
°yauk I -LP
Miami, FL
April 29, 2024
115
CITY OF SUNNY ISLES BEACH, FLORIDA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
Assistance
Federal Agency, Pass-through Entity Listing No. Contract/ Total
Federal Program (ALN) Grant No. Expenditures
United States Department of Justice
Direct Program:
Equitable Sharing Program 16.922 FLO135100
$ 1,575,771
Total United States Department of Justice
1,575,771
United States Department of Homeland Security
Indirect Programs:
Passed through State of Florida - Division of Emergency Management -
Disaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036 DR -4486 -FL
51,172
Total United States Department of Homeland Security
51,172
United States Department of Treasury
Indirect Program:
Passed through State of Florida - Division of Emergency Management -
Coronavirus State and Local Fiscal Recovery Funds 21.027 Y5301
4,560,307
Total United States Department of Treasury
4,560,307
Total Expenditures of Federal Awards
$ 6,187,250
Note: No amounts were provided to subrecipients.
See notes to Schedule of Expenditures of Federal Awards.
116
CITY OF SUNYY ISLES BEACH, FLORIDA
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
NOTE I — BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards (the "Schedule") presents the
expenditure activity of all federal awards of the City of Sunny Isles Beach, Florida (the
"City") for the fiscal year ended September 30, 2023. The information in this Schedule is
presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations,
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected
portion of the operations of the City, it is not intended to and does not present the financial
position, changes in net position/fund balance or cash flows of the City.
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following the cost principles contained in the Uniform Guidance,
wherein certain types of expenditures are not allowable or are limited as to reimbursement.
NOTE 3 — INDIRECT COST RATE
The City has elected not to use the 10 -percent de minimis indirect cost rate allowed under
the Uniform Guidance.
117
CITY OF SUNNY ISLES BEACH, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
SECTION I — SUMMARY OF AUDITORS' RESULTS
Financial Statements
Type of auditors' report issued on whether the financial
statements audited were prepared in accordance with GAAP
Internal control over financial reporting:
Material weakness(es) identified?
Significant deficiency(ies) identified?
Non-compliance material to financial statements noted?
Federal Awards
Internal control over major programs:
Material weakness(es) identified?
Significant deficiency(ies) identified?
Type of auditors' report issued on compliance for major
programs:
Any audit findings disclosed that are required to be
reported in accordance with 2 CFR 200.516(a)?
Identification of Major Federal Programs:
Unmodified Opinion
Yes X No
Yes X None reported
Yes X No
Yes X No
Yes X None reported
Unmodified Opinion
Yes X No
ALN Federal Program
21.027 Coronavirus State and Local Fiscal Recovery Funds
16.922 Equitable Sharing Program
Dollar threshold used to distinguish between Type A and
Type B federal programs: $750,000
Auditee qualified as low-risk auditee pursuant to the
Uniform Guidance? X Yes
No
118
CITY OF SUNNY ISLES BEACH, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
SECTION II — FINANCIAL STATEMENT FINDINGS
None.
SECTION III — FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS
None.
119
CITY OF SUNNY ISLES BEACH, FLORIDA
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
I. PRIOR YEAR FINANCIAL STATEMENT FINDINGS
None.
II. PRIOR YEAR FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS
None.
120
MAY CUM
ACCOUNTANTS A ADVISORS
MANAGEMENT LETTER IN ACCORDANCE WITH THE RULES OF THE
AUDITOR GENERAL OF THE STATE OF FLORIDA
To the Honorable Mayor, the City Commission and City Manager
City of Sunny Isles Beach, Florida
Report on the Financial Statements
We have audited the financial statements of the City of Sunny Isles Beach, Florida (the "City"), as
of and for the fiscal year ended September 30, 2023, and have issued our report thereon dated
April 29, 2024.
Auditors' Responsibility
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States (Government Auditing
Standards); the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance) and Chapter 10.550, Rules of the Auditor General.
Other Reporting Requirements
We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and
on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in
Accordance with Government Auditing Standards; Independent Auditors' Report on Compliance
for each Major Federal Program and Report on Internal Control over Compliance Required by the
Uniform Guidance; Schedule of Findings and Questioned Costs; Summary Schedule of Prior Audit
Findings; and Independent Accountants' Report on an examination conducted in accordance with
AICPA Professional Standards, AT -C Section 315, regarding compliance requirements in
accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and
schedules, which are dated April 29, 2024, should be considered in conjunction with this
management letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address findings and recommendations made in the preceding
financial audit report. There were no findings or recommendations made in the preceding financial
audit report.
121
Marcum LLP / One Southeast Third Avenue / Suite 1100 / Miami, FL 33131 / Phone 305.995.9600 / marcumllp.com
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed
in this management letter, unless disclosed in the notes to the financial statements. This information
is disclosed in Note 1 of the financial statements.
Financial Condition and Management
Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply
appropriate procedures and communicate the results of our determination as to whether or not the
City has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to
identify the specific condition(s) met. In connection with our audit, we determined that the City did
not meet any of the conditions described in Section 218.503(1), Florida Statutes.
Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied
financial condition assessment procedures for the City. It is management's responsibility to monitor
the City's financial condition, and our financial condition assessment was based in part on
representations made by management and review of financial information provided by same. The
financial condition assessment was performed as of the fiscal year end.
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any
recommendations to improve financial management. In connection with our audit, we did not have
any such recommendations.
Additional Matters
Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance
with provisions of contracts or grant agreements, or abuse, that has occurred, or are likely to have
occurred, that have an effect on the financial statements that is less than material but warrants the
attention of those charged with governance. In connection with our audit, we did not note any such
findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida
Auditor General, Federal and other granting agencies, the Honorable Mayor, City Commission, and
applicable management, and is not intended to be and should not be used by anyone other than these
specified parties.
PYavd k S GP
Miami, FL
April 29, 2024
122
MA CUM
ACCOUNTANTS .s ADVISORS
INDEPENDENT ACCOUNTANTS' REPORT ON COMPLIANCE PURSUANT TO
SECTION 218.415, FLORIDA STATUTES
To the Honorable Mayor, the City Commission and City Manager
City of Sunny Isles Beach, Florida
We have examined the City of Sunny Isles Beach, Florida (the "City") compliance with Section
218.415, Florida Statutes, Local Government Investment Policies, for the fiscal year ended
September 30, 2023. Management of the City is responsible for the City's compliance with the
specified 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
American Institute of Certified Public Accountants. Those standards require that we plan and
perform the examination to obtain reasonable assurance about whether the City complied, in all
material respects, with the specified requirements referenced above. An examination involves
performing procedures to obtain evidence about whether the City complied with the specified
requirements. The nature, timing, and extent of the procedures selected depend on our judgment,
including an assessment of the risks of material noncompliance, whether due to fraud or error. We
believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis
for our opinion.
We are required to be independent of the City and to meet other ethical responsibilities in
accordance with relevant ethical requirements related to the engagement.
Our examination does not provide a legal determination on the City's compliance with specified
requirements.
In our opinion, the City complied, in all material respects, with Section 218.415, Florida Statutes
for the fiscal year ended September 30, 2023.
This report is intended solely to describe our testing of compliance with Section 218.415, Florida
Statutes and it is not suitable for any other purpose.
`Yavcic. L LP
Miami, FL
April 29, 2024
123
Marcum LLP / One Southeast Third Avenue / Suite 1100 / Miami, FL 33131 / Phone 305.995.9600 / marcumllp.com
CITY OF
f�•
SWORN TO AND SUBSCRIBED before me this 29�' ay of March 2024.
�►,Y ��'`. ANGEL COLLINS
i Notary Public • State of Florida _...
Commission r HH 440134 NOTARY PUBLIC
My Comm. Expires Sep 4, IOI7 /
Bonded through National Notary Assn. Print Name N ' co k 9
Personally known X or produced identification
Type of identification produced:
My Commission Expires:
CITY OF SUNNY ISLES BEACH
16070 Collins Ave, Sunny Izilu5 Beach. FL 33160
wx.
ter.
ctbfl net 1 305 447 0606
124
IMPACT FEE AFFIDAVIT
City Commission
Larisa Svechin
BEFORE ME, the undersigned authority, personally appeared Tiffany D. Neely,
ml.
Finance Director, who being duly swom, deposes and says on oath that:
;
Alex Lama
1. 1 am the Finance Director of City of Sunny Isles Beach, Florida,
Vice mavor
which is a local governmental of the State of Florida;
Jerry Joseph
Corer„ ssionef
2. The governing body of City of Sunny Isles Beach, Florida,
adopted Ordinance No. 2001-133, 2001-134 and 2001-135
Fabiola Stuyvesant
implementing an impact fee or authorized the City of Sunny Isles
c:( -)in misst0if. r
Beach, Florida, to receive and expend proceeds of an impact fee
implemented by City of Sunny Isles Beach, Florida; and
Jeniffer Vlscarra
c
3. City of Sunny Isles Beach, Florida, has complied and, as of the
u_ a
date of this Affidavit, remains in compliance with Section
163.31801, Florida Statutes.
Stan Morris
City Manager
FURTHER AFFIANT SAYETH NAUGHT.
Mauricio Betancur
r^1
Cay t7leik, GlbRC
TifFa eeiy, Fi once Ictor
STATE OF FLORIDA
COUNTY OF MIAMI-DADE
SWORN TO AND SUBSCRIBED before me this 29�' ay of March 2024.
�►,Y ��'`. ANGEL COLLINS
i Notary Public • State of Florida _...
Commission r HH 440134 NOTARY PUBLIC
My Comm. Expires Sep 4, IOI7 /
Bonded through National Notary Assn. Print Name N ' co k 9
Personally known X or produced identification
Type of identification produced:
My Commission Expires:
CITY OF SUNNY ISLES BEACH
16070 Collins Ave, Sunny Izilu5 Beach. FL 33160
wx.
ter.
ctbfl net 1 305 447 0606
124
'-,q'- s
8 9y+F60�.•. y4.
rfrr av sup+ ��p
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, Florida 33160
(305) 947-0606 City Hall
(305) 949-3113 Fax
MEMORANDUM
TO: Honorable Mayor and City Commissioners
VIA: Stan Morris, City Manager
FROM: Tiffany D. Neely, Finance Director
DATE: May 16, L2024
RE: Budget Amendment BA2324-02
RECOMMENDATION:
Staff recommends adoption of this ordinance.
REASONS:
Budget Amendment BA2324-02 is necessary to record the following budget transactions:
1. Allocate funds from Assigned Fund Balance to expenditures for Parks & Recreation Master plan
(PRMP) projects - Gateway artificial turf, Pelican Community Park closed campus, Heritage and
Town Center Park playground equipment, The Spot Improvements, Intracoastal Sports Park, &
City-wide Parks Improvements.
2. Reallocate funds from Heritage Park playground equipment to Consulting for design of a new
Heritage Parkfacility.
3. Reallocate funds from land acquisition for demolition, surveying/mapping and title search
associated with purchase of 18126 Atlantic Blvd.
ADDITIONAL INFORMATION:
The following budget transactions were added between first and second reading of the ordinance:
1. Allocate funds for Samson Park shade structure repairs. (addendum)
2. Allocate additional funds for the City Anniversary celebration and transfer funds between
accounts for anticipated needs. (addendum)
3. Allocate additional funds for the installation of the emergency generator at Gateway Park.
(addendum)
Item Number: 9.A
ATTACHMENTS:
Ordinance
Budget Amendment BA2324-02
Item Number: 9.A