HomeMy WebLinkAboutCity of Miami - Public Financial ReportANNUAL POPULAR
FINANCIALREPORT
Fiscal Year Ended
September 30, 2021 2021
.
Prepared By:
THE FINANCE DEPARTMENT
Erica T. Paschal, CPA
Director
Munirah Daniel, CPA
Assistant Director
Noel G. Ramos
Controller
Armando J. Blanco
Treasurer
FISCAL YEAR ENDED
September 30, 2021
POPULAR ANNUAL
FINANCIAL REPORT
City of Miami, Florida
INTRODUCTION
About our City ........................................................1
Principal City Officials .........................................2
City Organizational Chart ..................................3
Geographic Location and Population ..........4
Miami by the Numbers ........................................5
Economic Outlook ................................................6
Achievements .........................................................7
Budget Process ......................................................8
FINANCIAL INFORMATION
Financial Highlights ..............................................9
Net Position .............................................................10
Expenses ...................................................................11
Revenues ..................................................................12
Capital Assets .........................................................13
Long-Term Obligations ......................................14
Cash and Investments .........................................16
Fund Balance ..........................................................17
TABLE OF CONTENTS
ABOUT the
POPULAR ANNUAL
FINANCIAL REPORT
(PAFR)
The Popular Annual Financial Report (PAFR)
is an unaudited summary report of the
financial activities of the City, and is prepared
primarily from detailed information contained
in the City’s 2021 Annual Comprehensive
Financial Report, with selected information
from Annual Comprehensive Financial
Report’s prepared for earlier years.
The Annual Comprehensive Financial Report
is prepared in accordance with generally
accepted accounting principles (GAAP)
and includes audited financial statements.
As such, it provides much more detail as
well as full disclosure of all material events,
both financial and non-financial. The
GAAP presentation also includes the City’s
component units (related organizations)
and information on individual funds.
The information in the Annual Comprehensive
Financial Report by its nature can be
technical and complex and as such not as
useful to citizens wishing to gain an overview
of the City’s finances. The PAFR has been
prepared to simplify the information in the
Annual Comprehensive Financial Report and
better inform the public about the overall
financial condition of the City, without the
heavy use of technical accounting terms or
excessive detail. The PAFR is not intended
to provide a complete financial picture of
the City in accordance with GAAP.
Questions or feedback concerning any of the
information provided in this report or requests
for additional financial information may be
directed to the City’s Finance Department via
mail to 444 SW 2nd Avenue, 6th Floor, Miami,
Florida 33130.
TO VIEW THE CITY’S
ANNUAL COMPREHENSIVE
FINANCIAL REPORT AND
POPULAR ANNUAL FINANCIAL
REPORT (PAFR) PLEASE VISIT:
http://archive.miamigov.com/Finance/
financialInfo.html
COVER PHOTO
Miami Skyline Stock photos by:
Demetrius Theune
The Finance Department would like to extend a special recognition to
Richard Rios, GSA-Graphics Reproduction Division, for his creativity and
support with the production of the Popular Annual Financial Report
City of Miami, Florida Finance Department
444 SW 2 Avenue, 6th Floor, Miami, Florida 33130
ANNUAL POPULAR
FINANCIALREPORT
Fiscal Year Ended September 30, 2021 2021
CITY OF MIAMI 1
The City of Miami was incorporated in 1896. The City is situated at the mouth
of the Miami River on the western shores of Biscayne Bay. It is a main port of
entry into Florida. Now 125 years old, the City is part of the nation’s eighth largest
metropolitan area. Incorporated in 1896, the City is the only municipality conceived
and founded by a woman – Julia Tuttle.
The City Charter was adopted by the electors of the City of Miami at an election
held May 17, 1921 and legalized and validated by Chapter 9024 of the laws of
the State of Florida of 1921. The Florida Legislature, in 1955, approved and
submitted to a general election, a constitutional amendment designed to give a
new form of government to Miami-Dade County, Florida (“County”). The County
is, in effect, a municipality with governmental powers affecting thirty-five cities
and unincorporated areas, including the City. The County has not displaced nor
replaced the cities’ powers, but supplements them. The County can assume
activities of the City’s operations if the services fall below minimum standards set
by the County Commission, or with the consent of the governing body of the City.
Accordingly, the County’s financial statements are not included in this report.
Since 1997, the City has been governed by a form of government known as the
“Mayor-City Commissioner plan.” There are five Commissioners elected from
designated districts within the City. City elections are held in November every
two years on a non-partisan basis. Candidates for Mayor must run as such, and
not for the Commission in general. At each election, two or three members of the
Commission are elected for four-year terms. Thus, the terms are staggered so
that there are always at least two experienced members of the Commission. The
Mayor is elected at large every four years.
As official head of the City, the Mayor has veto authority over actions of the
Commission. The Mayor appoints the City Manager who functions as chief
administrative officer. The City Manager serves as the administrative head of the
municipal government, charged with the responsibility of managing the City’s
financial operations and organizing and directing the administrative infrastructure.
The City Manager also retains full authority in the appointment and supervision of
department directors, preparation of the City’s annual budget and initiation of the
investigative procedures. In addition, the City Manager takes appropriate action
on all administrative matters.
ABOUT OUR CITY
CITY SERVICES
The City provides a full range of services, including police and fire protection,
public works projects, solid waste collection, building inspections, licenses and
permits, code compliance, the construction and maintenance of streets, housing
and community development, recreational and cultural activities, human services,
trolley services, and resilience and sustainability initiatives.
CITY OF MIAMI 2
MISSION STATEMENT
Miami is a modern and diverse city that is
a global leader in technology, innovation,
and resiliency.
VISION
The City of Miami is committed to
elevating the quality of life of its residents
by improving public safety, housing,
mobility, diverse shared spaces that foster
community, and efficient and transparent
government.
Francis X. Suarez
Mayor
Ken Russell
Commissioner - District 2
Manolo Reyes
Commissioner - District 4
Arthur Noriega V
City Manager
Todd B. Hannon
City Clerk
Alex Díaz de la Portilla
Commissioner - District 1
Christine King
Commissioner - District 5
Chairwoman
Victoria Méndez
City Attorney
Joe Carollo
Commissioner - District 3
Vice-Chairman
CITY OF MIAMI, FLORIDA
CITY OF MIAMI 3
CITY ORGANIZATIONAL
CHART
City Attorney
Victoria Méndez
City Clerk
Todd B. Hannon
Independent
Auditor General
Theodore Guba, CPA
CITY COMMISSION
Chairwoman:
Christine King
District 5
Vice-Chairman:
Joe Carollo
District 3
Ken Russell
District 2
Commissioner:
Alex Díaz de la Portilla
District 1
Commissioner:
Manolo Reyes
District 4
Executive Mayor Francis X. Suarez Chief Administrator / City Manager
Arthur Noriega, V
Fire Rescue
Police
Human Resources
Planning
Zoning
Resilience and
Public Works
Fire Fighters’ and Police
Officers’ Retirement Trust
General Employees’ and
Sanitation Employees’
Retirement Trust
Civil Service
Civilian
Investigative Panel
Virginia Key Beach
Park Trust
Bayfront ParkManagement Trust
Miami Parking
Authority
Southeast Overtown
Park West CRA
Omni CRA
DowntownDevelopment Authority
Capital Improvements Communications
Equal Opportunity
and Diversity
Programs
Agenda Coordination
Assistant City Manager
Chief of Operations
Natasha Colebrook-Williams
Assistant City Manager
Chief Financial Officer
Fernando Casamayor
Deputy City Manager
Chief of Infrastructure
Nzeribe Ihekwaba, Ph.D., PE
Liberty City Trust
Coconut Grove BID
Wynwood BID
Little Haiti
Revitalizaton Trust
Building
Parks and Recreation
Midtown CRA
Code Compliance
Human Services
Innovation and
Technology
Solid Waste
General Services
AdministrationGrants Administration
Management and Budget
Procurement
Risk Management
Housing and Community Development
Real Estate and Asset
Management
Finance
CITY OF MIAMI 4
According to the U.S. Census Bureau, the City’s population in 1900 was 1,700 people. Today it is a
city rich in cultural and ethnic diversity of approximately 449,747 residents according to the Bureau
of Economic and Business research, University of Florida. In physical size, the City is not large,
encompassing only 35.87 square miles. In population, the City is the largest of the 34 municipalities
that make up Miami-Dade County.
District 1
District 2
District 3District 4
District 5
COMMISSION DISTRICTS
DISTRICT 1:
Commissioner
Alex Díaz de la Portilla
DISTRICT 2:
Commissioner
Ken Russell
DISTRICT 3:
Vice-Chairman
Joe Carollo
DISTRICT 4:
Commissioner
Manolo Reyes
DISTRICT 5:
Chairwoman
Christine King
GEOGRAPHIC LOCATION
AND POPULATION
CITY OF MIAMI 5
MIAMI BY THE NUMBERS
CITY EMPLOYEES MIAMI AREA
PUBLIC WORKS
POLICE
PARK & RECREATION
FIRE
4,381 35.87
Sq. Miles
661.6
Streets (miles paved)
1 Station
3 Sub-stations
149
Parks
43
Community Centers
15
Stations
POPULATION
449,747
The City of Miami is
the largest of 34
municipalities that
make up Miami-
Dade County
CITY OF MIAMI 6
On January 30, 2020, the World Health Organization declared the
coronavirus outbreak a "Public Health Emergency of International
Concern" and on March 12, 2020 the City of Miami declared a State of
Local Emergency due to the spread of COVID -19 in Miami-Dade County,
Florida. The spread of COVID-19, a novel strain of coronavirus, has
altered the behavior of business and people in a manner that is having
negative effects on local, regional and global economies. The extent to
which COVID-19 will continue to impact the City will depend on future
developments, which are highly uncertain and cannot be predicted with
confidence, including the duration of the outbreak, new information that
may emerge concerning the severity of COVID-19, the actions taken to
contain COVID-19 or treat its impact, and the impact of each of these
items on the economies and financial markets in the United States.
In response to the economic hardships caused by the COVID-19 Pandemic,
Congress passed the Coronavirus Aid, Relief and Economic Security Act
(CARES Act). With its allocation of CARES Act funds, the City of Miami
launched a Business Assistance Grant program to assist qualified for-
profit and not-for-profit small businesses located within City of Miami
limits that suffered a loss of revenue due to the COVID-19 pandemic.
The program provided 128 eligible businesses with a one-time assistance
grant equal to 20 percent of the business’s annual gross revenue in
2019. The program was capped at a maximum amount of $20,000, to
cover expenses that help the business remain operational, which totaled
approximately $1.9 million.
On March 11, 2021, the United States Congress enacted the American
Rescue Plan, which was a $1.9 trillion economic stimulus bill to provide
economic relief in response to the COVID-19 pandemic. The City was
approved for an allocation of $137.6 million. In June 2021, the City
received $68.8 million of the allocation to be appropriated for programs
that respond to the negative impacts of the pandemic, provide premium
pay for essential workers, and invest in water, sewer, and broadband
infrastructure.
As with most U.S. cities, but particularly important for the Miami area
given its dependence on travel-related activity, economic and revenue
performance are closely aligned with the progression of the virus and
widespread availability of an effective vaccine or treatment. The current
deployment of the COVID-19 vaccines to the population is an indicator
that points towards improvement in the local economy.
ECONOMIC OUTLOOK
CITY OF MIAMI 7
The Government Finance Officers Association
of The United States and Canada (GFOA) has
given an award for Outstanding Achievement in
Popular Annual Financial Reporting to the City
of Miami, Florida for its Popular Annual Financial
Report for the fiscal year ended September 30,
2020. The Award for Outstanding Achievement in
Popular Annual Financial Reporting is a prestigious
national award recognizing conformance with the
highest standards for preparation of state and
local government popular financial reports.
In order to be awarded a Certificate of Achievement,
a government unit must publish a Popular Annual
Financial Report, whose contents conform to
program standards of creativity, presentation,
understandability and reader appeal.
A GFOA award in Popular Annual Financial Reporting
is valid for a period of one year only. We believe our
current report continues to conform to the Popular
Annual Financial Reporting requirements, and we
are submitting it to the GFOA.
The City of Miami, Florida was also awarded the
Certificate of Achievement for Excellence in
Financial Reporting by the Government Finance
Officers Association of the United States and
Canada for its Annual Comprehensive Financial
Report for year ended September 30, 2020. The
Certificate of Achievement is the highest form
of recognition for excellence in state and local
government financial reporting.
In order to be awarded a Certificate of Achievement,
a government unit must publish an easily readable
and efficiently organized Annual Comprehensive
Financial Report, whose contents conform to
program standards. The report must satisfy both
generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is also valid for a period
of one year. We believe our Annual Comprehensive
Financial Report continues to conform to the
Certificate of Achievement program requirements,
and we have also submitted our Annual
Comprehensive Financial Report for the current
year to the GFOA.
Government Finance Officers Association
Award for Outstanding Achievement in Popular Annual Financial Reporting
Presented to
City of Miami
Florida
For its Annual Financial Report
for the Fiscal Year Ended
September 30, 2020
Executive Director/CEO
ACHIEVEMENTS
CITY OF MIAMI 8
END OF FEBRUARY
Department Budget
Submittals
MARCH
Mayor delivers "State of
the City" address to City
residents
APRIL THROUGH MAY
Budget workshops are
conducted with the
department and budget
analysts. Public Hearings are
held for citizen's comments.
JULY
Proposed Budget is
finalized and introduction
of Budget Ordinance to
the City Commission.
Commission also votes on
the proposed millage rate.
SEPTEMBERReview of Budget Ordinance and Public Hearings with City Manager and department directors
LATE SEPTEMBERAdoption of Budget Ordinance
The annual budget serves as the foundation for the
City’s financial planning and control. The City’s fiscal
year is from October 1st to September 30th. The Mayor
is required to prepare and deliver a budgetary address
annually to the residents of the City.
The City Commission is required to hold public hearings
on the proposed budget and to adopt the final budget
no later than September 30th preceding the beginning
of the fiscal year on October 1st.
Budgets are monitored at varying levels of classification
detail that include both personnel and operating as
appropriation designations; however, budgetary control
is legally maintained at the fund level, except for the
general fund, which is maintained at the departmental
operating level.
BUDET PROCESS
CITY OF MIAMI 9
The information provided is summarized and represents only selected funds; therefore, it is not in
accordance with generally accepted accounting principles (GAAP) and is not intended to represent all
of the City’s component units. The following table is a summary of select financial data for the past two
fiscal years:
Governmental activities of the City – general government, planning, and development, community
development, community redevelopment areas, public works, public safety, public facilities, parks
and recreation, interest on long- term debt.
FINANCIAL SUMMARY
2021
$ 1,965,193,186
573,825,255
3,072,883,367
375,123,936
(908,988,863)
1,105,091,240
1,105,091,240
1,227,209,415
1,227,209,415
1,076,256,328
1,076,256,328
539,567,520
$ 539,567,520
NET POSITIONS
Assets
Deferred Outflows
Liabilities
Deferred Inflows
Total Net Position (Deficit)
REVENUES
Governmental Activities
Total Revenues
EXPENSES
Governmental Activities
Total Expenditures
CAPITAL ASSETS
Governmental Activities
Total Capital Assets
LONG-TERM OBLIGATIONS
Governmental Activities
Total Long-Term Obligations
2020
$ 1,816,112,772
566,452,576
2,854,317,892
315,118,144
(786,870,688)
1,024,569,536
1,024,569,536
1,095,966,163
1,095,966,163
1,092,258,711
1,092,258,711
548,405,997
$ 548,405,997
GOVERNMENTAL ACTIVITIES
FINANCIAL HIGHLIGHTS
CITY OF MIAMI 10
The Government-wide Balance Sheet, known as the Statement of Net Position, presents information on all
of the City’s assets and liabilities, with the difference between the two reported as net position. Increases
and decreases in net position serve as an indicator of the City’s financial position and of the results of the
City’s operations.
The liabilities and deferred inflows of resources of the City exceeded its assets and deferred outflows of
resources at the close of the 2021 fiscal year by approximately $909.0 million (net position deficit).
One portion of the City’s net position is its investment in capital assets (e.g. infrastructure, land, buildings,
machinery and equipment), which is reported net of accumulated depreciation, less any related debt used
to construct or acquire those assets that is still outstanding. The City uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending. Although the City’s
investment in capital assets is reported net of related debt, it should be noted the resources needed to
repay this debt must be provided from other sources, since the capital assets themselves are typically not
used to liquidate these liabilities. As of September 30, 2021, the City’s net investment in capital assets
was approximately $630.0 million.
An additional portion of the City’s net position represents resources that are subject to restrictions on how
they may be used. As of September 30, 2021, the City’s portion of restricted net position was approximately
$426.2 million.
The remaining portion of the City’s net position represents an unrestricted net deficit of approximately
$2.0 billion, which is primarily due to outstanding borrowings for which there are no off-setting assets,
along with an increase in claims payable, net pension liability, and other post-employment benefits (OPEB
liability. At the end of the current fiscal year, the City's overall net position decreased by approximately
$122.1 million compared to the prior fiscal year.
STATEMENT OF NET POSITION GOVERNMENT ACTIVITIES
2021
$888,936,858
1,076,256,328
1,965,193,186
573,825,255
328,328,727
2,744,554,640
3,072,883,367
375,123,936
629,956,484
426,214,523
(1,965,159,870)
$(908,988,863)
CHANGE ($)
$165,082,797
(16,002,383)
149,080,414
7,372,679
95,659,100
122,906,375
218,565,475
60,005,792
(35,724,121)
24,908,329
(111,302,383)
$(122,118,175)
2020
$ 723,854,061
1,092,258,711
1,816,112,772
566,452,576
232,669,627
2,621,648,265
2,854,317,892
315,118,144
665,680,605
401,306,194
(1,853,857,487)
$ (786,870,688)
CHANGE (%)
22.81%
-1.47%
8.21%
1.30%
41.11%
4.69%
7.66%
19.04%
-5.37%
6.21%
6.00%
15.52%
ASSETS
Current and Other Assets
Capital Assets
Total Assets
DEFERRED OUTFLOWS OF
RESOURCES
LIABILITIES
Other Liabilities
Long-Term Liabilities
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
NET POSITION (Deficit)
Net Investment in Capital Assets
Restricted
Unrestricted (Deficit)
Total Net Position (Deficit)
THE CITY'S
NET POSITION
CITY OF MIAMI 11
WHERE DOES THE MONEY GO?
During fiscal year 2021, expenses for governmental activities increased by $131.2 million primarily due
to Public Safety expenses increasing by $91.2 million and Community Development expenses increasing
by $20.7 million during the current fiscal year.
The following schedule reflects a summary of expenses compared to the prior year:
TOTAL EXPENSES
2021
$ 181,802,024
32,322,698
49,845,139
41,687,355
128,492,915
693,848,367
20,286,822
60,233,253
18,690,842
$ 1,227,209,415
EXPENSES
General Government
Planning and Development
Community Development
Community Redevelpment Areas
Public Works
Public Safety
Public Facilities
Parks and Recreation
Interest on Long-Term Debt
Total Expenses
2020
$ 177,167,727
29,291,564
29,159,537
48,200,294
116,448,800
602,699,416
19,575,268
54,919,137
18,504,420
$ 1,095,966,163
2019
$ 212,030,574
32,481,681
29,885,260
39,510,779
118,662,743
534,660,409
20,295,788
63,493,078
20,689,106
$ 1,071,709,418
GOVERNMENTAL ACTIVITIES
Community Development4%
Planning and Development3%
General Government
15%
Community Redevelopment Areas
3%
Public Works
10%
Public Safety
57%
Public Facilities
2%
Parks and Recreation
5%Interest on Long-Term Debt
1%
GOVERNMENT
FUND EXPENSES
CITY OF MIAMI 12
WHERE DOES THE MONEY COME FROM?
During fiscal year 2021, total revenues for governmental activities increased over the prior year but
were less than the total expenses for the governmental activities. Specifically, property taxes
increased over the prior year by $33.2 million, an increase of 7.0 percent, which was primarily
driven by new construction.
The following schedule reflects a summary of revenue compared to the prior year:
TOTAL REVENUES
2021
$ 242,502,030
162,278,864
19,238,489
505,088,763
50,339,450
18,716,613
40,024,004
65,846,228
1,056,799
$ 1,105,091,240
2020
$ 236,702,616
120,557,951
7,128,248
471,877,220
49,083,039
16,310,689
32,664,564
64,646,386
13,537,217
12,061,606
$ 1,024,569,536
PROGRAM REVENUES
Charges for Services
Operating Grants and Contributions
Capital Grants and Contributions
GENERAL REVENUE
Property Taxes
Franchise Taxes
State Revenue Sharing - Unrestricted
Sales and Other Use Taxes
Public Service Taxes
Gain (loss) Sale of Property
Investment earnings/(losses) - unrestricted
Total Revenues
2019
$ 264,479,946
104,297,657
2,816,007
427,204,549
51,399,079
17,254,032
37,022,921
64,160,961
17,068,757
$ 985,703,909
GOVERNMENTAL ACTIVITIES
Charges for Services
21.94%
Operating Grant and Contributions14.68%
State Revenue Sharing - Unristricted1.69%Capital Grants and Contributions1.74%
Franchise Taxes
4.56%
Property Taxes
45.71%
Sales and other use taxes
3.62%Public Service Taxes5.96%
Investment Earnings - Unrestricted
0.10%
GOVERNMENT
FUND REVENUES
CITY OF MIAMI 13
INVESTING IN OUR COMMUNITY
The City’s investment in capital assets as of September 30, 2021, is $1.1 billion. This investment in capital
assets includes land, buildings, improvements, machinery, equipment and infrastructure. The total
decrease in capital assets from the end of the prior fiscal year is approximately $16.0 million.
Major capital asset events during the current fiscal year included the following:
Major capital asset events during the current fiscal year included the following:
• Land increased approximately $1.4 million.
•Construction in progress increased approximately $37.7 million. The total transfers out and deletions
of construction in progress amounted to approximately $24.1 million; however, there was an addition
of approximately $61.8 million in new expenditures.
•Buildings decreased by approximately $8.1 million. The decrease is primarily attributed to $8.1 million
in depreciation expense.
•Improvements decreased by approximately $12.5 million. The projects completed during the fiscal year
and transferred from construction in progress totaled $0.8 million. There was also an addition of $0.5
million. These transfers and additions are offset by depreciation expense and retirements incurred for
the current fiscal year which net to $13.7 million.
•Machinery and Equipment decreased by approximately $14.9 million. There was $7.6 million in additions,
primarily attributed to the acquisition of Fire vehicles, new trolleys for Transportation, Police and
Fire equipment. These expenditures are offset by $6.4 million in retirements and approximately $15.4
million in depreciation expense for the current fiscal year.
•Infrastructure decreased by approximately $19.7 million. The projects completed during the fiscal year
and transferred from construction in progress totaled $15.1 million and were primarily for seawall and
storm drain projects. This was offset by $34.8 million in depreciation expense for the current fiscal year.
CAPITAL ASSETS (NET OF DEPRECIATION)
2021
$ 122,601,250
202,008,071
193,053,271
53,513,745
60,381,452
444,698,539
$ 1,076,256,328
2020
$ 121,199,691
164,334,377
201,121,853
65,991,842
75,258,399
464,352,548
$ 1,092,258,711
Land
Construction-in-Progress
Buildings
Improvements
Machinery and Equipment
Infrastructure
Total Capital Assets
GOVERNMENTAL ACTIVITIES
SUMMARY OF
CAPITAL ASSETS
CITY OF MIAMI 14
As of September 30, 2021, the City’s long-term obligations totaled $2.85 billion. Of this amount, $107.7 million is
due within one year. The long-term obligations for the City include claims payable, debt, compensated
absences, net pension liability, and other post-employment benefit (OPEB) obligations.
The claims payable balance of $231.2 million includes an accrual of $1.6 million for pollution remediation
obligations, which are obligations to address the current or potential detrimental effects of existing
pollution, $49.2 million for potential legal claims and $180.4 million in connection with the City’s self-insurance
program.
The City had total debt outstanding of $539.57 million plus $5.69 million of unamortized bond premiums
as of September 30, 2021. Of this amount, $94.35 million is backed by Limited Ad Valorem Tax Revenue;
the remainder represents Special Obligation, Revenue bonds, loans and leases which are secured solely
by Non-Ad Valorem Revenue sources.
Ending Balance as of
September 30, 2021
$ 94,345,000
305,622,520
139,600,000
539,567,520
5,689,227
82,659,616
231,170,181
958,411,935
1,034,749,059
$ 2,852,247,538
LONG-TERM OBLIGATIONS
General Obligation Bonds – Direct Placement
Other Direct Placements
Special Obligation and Revenue Bonds, Loans and Leases
Total Debt Outstanding
Bond Premium (Discounts)
Compensated Absences
Claims Payable
Other Post Employment Benefits
Net Pension Liability
Total Long-Term Obligations
Amount Due
Within One Year
23,065,000
27,364,832
9,295,000
59,724,832
-
7,020,597
40,947,469
-
-
$ 107,692,898
GOVERNMENTAL ACTIVITIES
LONG TERM DEBT
Special Obligation and Revenue Bonds, Loans and Leases26%
General Obligation Bonds:Direct Payment Placement
17%
Other Direct Placements 57%
LONG-TERM
OBLIGATIONS
CITY OF MIAMI 15
During Fiscal Year 2021 the City issued $16.3 million in Vehicle Replacement Program Series 2020
#2, $24.4 million Special Obligation Tax-Exempt Revenue Bonds Series 2021 (FP&L Undergrounding
Project), and $9.8 million Vehicle Replacement Program Series 2021.
CREDIT RATINGS
There are three major rating agencies that evaluate thousands of issuers and their municipal bonds.
The agencies are Moody’s, Standard and Poor’s (S&P), and Fitch Ratings. The ratings agencies assign
ratings such as AAA and other ratings. The objective of the rating agency is to assign a municipal bond
credit rating to make it faster for market participants to evaluate risk. A bond’s credit rating is the
rating agency’s opinion as to the creditworthiness of the bond’s issuer. Each rating agency produces a
ratings scale. The table below shows the City's latest ratings as determined by the three national rating
agencies (Moody’s, Standard & Poor’s, and Fitch Ratings) as of September 30, 2021:
City of Miami Bond Ratings
ISSUE
Limited General Obligation
Marlins Garage
Special Obligation (NAV)
Street and Sidewalks
Aa3
Aa
Aa3
A2
AA-
AA-
AA-
A
A-
A+
A+
AA-
BOND CREDIT RATING
In investment, the bond credit rating represents
the credit worthiness of corporate or government
bonds. It is not the same as individual’s credit
score. The ratings are published by credit rating
agencies and used by investment professionals
to assess the likelihood the debt will be repaid.
Credit rating is a highly concentrated industry
with the two largest rating agencies — Moody’s
Investors Service, Standard & Poor’s — having
roughly 80% market share globally, and the “Big
Three” credit rating agencies — Moody’s, S&P
and Fitch Ratings — controlling approximately
95% of the ratings business.”
LONG-TERM
OBLIGATIONS
CITY OF MIAMI 16
TYPES OF RISK
Interest Rate Risk - the risk that the fair value of the City’s investments will decrease as a result of an
increase in interest rates.
Credit Rate Risk – the risk that the City will not recover its investments due to the inability of the issuer to
fulfill its obligation.
Custodial Credit Risk – the risk that, in the event of failure of the issuer, the City will not be able to recover
the value of its deposits, investments, or collateral securities that are in possession of an outside party.
WAYS THE CITY MITIGATES RISK
Interest Rate Risk - to limit its exposure to fair value losses arising from rising interest rates, the City’s
Investment Policy limits the maturity of an investment to a maximum of five years.
Credit Rate Risk – in order to prevent over concentration by investment type, the City’s Investment
Policy provides for diversification of its portfolio which establishes limitations on portfolio composition by
investment type and by issuer.
Custodial Credit Risk – the City’s Investment Policy requires that all securities be registered in the name
of the City and be held with a third party custodian. The policy also requires that all securities purchased
and all collateral obtained by the City should be properly designated as an asset of the City.
As of September 30, 2021, pooled cash, cash equivalents and investments including restricted amounts
of the primary government, exclusive of the Pension Trust Funds and discrete component units balances,
consisted of the following:
Balance
$ 230,293,647
21,490,663
21,057,425
96,263,613
44,602,450
159,911,300
10,187,577
35,212
583,841,887
205,950,952
$ 789,792,839
Investment Type
United States Treasury Notes
Federal National Mortgage Association
Federal Home Loan Mortgage Corp.
Federal Home Loan Bank
Corporate Notes
Commercial Paper
Supranational Notes
Money Market Fund
Total Investments
Bank Deposits
Total Pooled Cash, Cash Equivalents and Investments
Standard &
Poor's Rating
AA+
AA+
AA+
AA+
A-
A-1
AAA
AAAm
Moody's
Rating
Aaa
Aaa
Aaa
Aaa
A3
P-1
Aaa
Aaa-mf
CASH AND INVESTMENTS
CITY OF MIAMI 17
The following is a description of the City’s fund balance classifications:
Non Spendable Fund Balance – This amount includes amounts that cannot be spent because they are either
(a) not in spendable form or (b) legally or contractually required to be maintained intact. Examples of this
would be inventory, prepaid assets, and permanent endowments.
Restricted Fund Balance – This amount includes amounts that are restricted to specific purposes stipulated
by (a) external creditors, grantors, contributors, or laws or regulations of other governments or (b) imposed
by law through constitutional provisions or enabling legislation.
Committed Fund Balance – This amount includes amounts that can only be used for specific purposes pursuant
to constraints imposed by resolution of the City’s highest level of decision making authority, which is the City
Commission. Once adopted by resolution, a resolution can only be revised or removed by adoption of a new
resolution.
Assigned Fund Balance – This amount includes amounts that are constrained by the City’s intent to be used
for specific purposes, but are neither restricted nor committed. Assignments are made directly by formal
action of the City Commission.
Unassigned Fund Balance – This amount is the residual classification 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. An assigned fund balance cannot result in an
unassigned fund balance deficit.
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the City’s total
General Fund balance was $157.5 million. Of this amount, the City has approximately $54.1 million retained as
designated fund balance, which includes $51.3 million as restricted, approximately $27.1 million is reported as
non-spendable for prepaid expenses and advances, approximately $2.8 million is designated as assigned fund
balance, and approximately $76.3 million is unassigned fund balance in accordance with the City’s Financial
Integrity Ordinance.
The General Fund’s fund balance had a net decrease of approximately $39.1 million during the current fiscal
year. Although revenues increased by $35.6 million, the increase was offset by an increase in expenses of
$36.5 million and an increase in other financing uses totaling $34.8 million, which resulted in the net decrease
of the General Fund balance. The primary change that contributed to the increase in other financing sources,
was transfers of $105.2 million from the General fund to other funds, which increased by $34.5 million from
the prior year, and includes $45 million transferred to Other Capital Projects for a new administration building.
FUND BALANCE - GENERAL FUND
2021
$ 27,108,617
51,328,869
-
2,811,048
76,264,571
$ 157,513,105
2020
$ 13,821,891
96,364,271
-
12,516,335
73,863,962
$ 196,566,459
Non Spendable
Restricted
Committed
Assigned
Unassigned
Total Fund Balances
FUND BALANCE
CITY OF MIAMI
ANNUAL POPULAR
FINANCIALREPORT
Fiscal Year Ended
September 30, 2021
www.miamigov.com twitter.com/miamifinance305
City Mayor's Office ...........................................(305) 250-5300
City Manager's Office ......................................(305) 250-5400
Finance ...............................................................(305) 416-1570
Fraud Hot Line ...................................................(305) 416-2003
Office of Management and Budget ..............(305) 416-1502
General Services Administration .................(305) 329-4870
Code Compliance .............................................(305) 416-2087
Housing and Community Development ......(305) 416-2080
Employment Office ..........................................(305) 416-2170
Loan Servicing ...................................................(305) 416 1975
Occupational Licenses (BTR) ........................(305) 416-1918
Division of Emergency Management ...........(305) 468-5900
Public Facilities .................................................(305) 416-1450
Sanitation Code Enforcement ......................(305) 960-2830
Building Inspections and Permits .................(305) 416-1100
CONTACT INFORMATION