NOTESTOBASICFINANCIALSTATEMENTS
B. GovernmentWideandFundFinancialStatements
B. GovernmentWideandFundFinancialStatements
services provided and used has been eliminated from these statements. Governmental activities,
which normally are supported by taxes and intergovernmentalrevenues,arereportedseparately
frombusinessͲtypeactivities,whichrelytoasignificantextentonfeesandchargesforservices.
ThegovernmentͲwidestatementofactivitiesdemonstratesthedegreetowhichthedirectexpenses
ofagivenfunctionorsegmentisoffsetbyprogramrevenues.Directexpensesarethoseexpensesthat
areclearlyidentifiablewithaspecificfunctionorsegment.Programrevenuesinclude:1)chargesto
customers or applicants who purchase, use or directly benefit from goods, services or privileges
providedbyagivenfunctionorsegmentand2)grantsandcontributionsthatarerestrictedtomeeting
Separate fund financial statements are provided for governmental funds, proprietary funds and
fiduciaryfunds,eventhoughthelatterareexcludedfromthegovernmentͲwidefinancialstatements.
Thefocusoffundfinancialstatementsisonmajorfunds.Majorindividualgovernmentalfundsand
the major individual enterprise funds are reported as separate columns in the fund financial
statements. GASB Statement No. 34 sets forth minimum criteria (percentage of assets/deferred
outflows,liabilities/deferredinflows,revenuesorexpenditures/expensesofeitherfundcategoryfor
the governmental and enterprise, combined, or funds that management deems of public
importance)forthedeterminationofmajorfunds.Thenonmajorfundsarecombinedandpresented
inasinglecolumninthefundfinancialstatements.
ThegovernmentͲwideͲfocusismoreonthesustainabilityoftheCityasanentityandthechangein
aggregatefinancialpositionresultingfromtheactivitiesofthefiscalperiod.Thefocusofthefund
financial statements is on the major individual funds of the governmental and businessͲtype
categories,(bycategory).Eachpresentationprovidesvaluableinformationthatcanbeanalyzedand
comparedtoenhancetheusefulnessoftheinformation.
C. MeasurementFocus,BasisofAccountingandFinancialStatementPresentation
ThegovernmentͲwidefinancialstatementsarereportedusingtheeconomicresourcesmeasurement
focus and the accrual basis of accounting, as are the proprietary and fiduciary fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is
incurred,regardlessofthetimingofrelatedcashflows.Propertytaxesarerecognizedasrevenuesin
theyearwhenanenforceablelienexistsandwhenleviedfor.Grantsandsimilaritemsarerecognized
asrevenuesassoonasalleligibilityrequirementsimposedbytheproviderhavebeenmet.
CityofAventura,Florida
Governmental fund financial statements are reported using the current financial resources
measurementfocusandthemodifiedaccrualbasisofaccounting.Revenuesarerecognizedassoon
related to compensated absences, pension, other postemployment benefits and claims and
judgments,arerecordedonlywhendue.
Property taxes, when levied for, franchise fees, utility taxes, charges for services, impact fees,
intergovernmental revenues when eligibility requirements are met and investment income
associated with the current fiscal period are all considered to be measurable and have been
recognizedasrevenuesofthecurrentfiscalperiod,ifavailable.Allotherrevenueitemssuchasfines
The principal operating revenues of the proprietaryfundarechargestocustomersforsalesand
services. Operating expenses for proprietary funds include the costs of sales and services,
administrativeexpensesanddepreciationoncapitalassets.Allrevenuesandexpensesthatdonot
This fund accounts for the activities of the Police Officers' Retirement Plan that accumulates
resourcesforpensionbenefitstoqualifyingpoliceofficers.
The financial statements of the City have been prepared in accordance with generally accepted
accounting principles (GAAP) as applied to governmental units. The Governmental Accounting
Standards Board (GASB) is the standard setting body for governmental accounting and financial
reporting. The financial statements of the City follow the guidance of GASB Statement No. 62,
CodificationofAccountingandFinancialReportingGuidanceContainedinPreͲNovember30,1989
FASB and AICPA Pronouncements for both the government wide and proprietary fund financial
statements.GovernmentsalsohavetheoptionoffollowingsubsequentFASBpronouncementsfor
applicants for goods, servicesorprivilegesprovided,2)operatinggrantsandcontributionsand3)
capitalgrants and contributions. Internally dedicated resources are reported as general revenues
ratherthanasprogramrevenues.Likewise,generalrevenuesincludealltaxes.
1. Cash,cashequivalentsandinvestmentsͲCashandcashequivalentsaredefinedasdemand
deposits,moneymarketaccountsandothershortͲterminvestmentswithoriginalmaturities
ofthreemonthsorlessfromthedateofacquisition.
Ingeneral,theCitymaintainsapooledcashaccountforallfunds.ThisenablestheCityto
investlargeamountsofidlecashforshortperiodsoftimeandtooptimizeearningspotential.
Cash, cash equivalents and investments represent the amount owned by each City fund.
Resources of all funds, with the exception of the pension fund, are also combined into
investmentpoolsforthepurposeofmaximizinginvestmentyields.Earningsonpooledcash
andinvestmentsareallocatedmonthlybasedonbalancesoftherespectivefunds.
The City's investments are reported at their estimated fair value except for the City's
investmentintheFloridaPRIMEwhichisrecorded/valuedattheamortizedcostmethod.
Thepensionplan'sinvestmentsarereportedatestimatedfairvalue.
CityofAventura,Florida
2. Receivables and payables Ͳ Activities between funds that are representative of
lending/borrowingarrangementsoutstandingattheendofthefiscalyeararereferredtoas
3. Prepaidexpenses/expendituresͲCertainpaymentstovendorsreflectcostsapplicabletoa
futureaccountingperiodandarerecordedasprepaiditemsinbothgovernmentͲwideand
fundfinancialstatements.
4. InventoriesͲInventoriesheldforresalearereportedatthelowerofcost(firstͲin,firstͲout)
ormarket.Inventoriesofsuppliesarereportedatcost.Theseamountsaretypicallyreported
as nonspendable in governmental fund financial statements. Inventory (supplies) is
accounted for using the consumption method whereby inventories are recorded as
expenditureswhentheyareused.
5. CapitalassetsͲCapitalassetspurchasedoracquiredwithanoriginalcostof$5,000ormore
arereportedathistoricalcostorestimatedhistoricalcost.Donatedcapitalassets,donated
works of art and similar items, and capital assets received in a service concession
arrangementarereportedatacquisitionvalue.Additions,improvementsandothercapital
outlaysthatsignificantlyextendtheusefullifeofanassetarecapitalized.Othercostsincurred
forrepairsandmaintenanceareexpensedasincurred.Depreciationonallassetsisprovided
onthestraightͲlinebasisoverthefollowingestimatedusefullives:
Buildings 25years
Improvementsotherthanbuildings 20Ͳ30years
Infrastructure 20Ͳ40years
Furniture,machineryandequipment 3Ͳ20years
Within governmental funds, amounts incurred for the acquisition of capital assets are
reported as fund expenditures. Depreciation expense is not reported within the
governmentalfundfinancialstatements.
6. Deferred outflows/inflows of resources Ͳ In addition to assets, the statement of financial
positionwillsometimesreportaseparatesectionfordeferredoutflowsofresources.This
separate financial statement element, deferred outflows of resources, represents a
consumptionofnetassetsthatappliestoafutureperiod(s)andsowillnotberecognizedas
an outflow of resources (expense/expenditure) until then. The City has pension related
amounts, postͲemployment benefits other than pension (OPEB), and deferred charge on
pension and OPEB related amounts that qualify for reporting in this category on the
governmentͲwidestatementofnetposition.
Unavailablerevenues,onthefundfinancialstatements,consistofutilityservicetaxesand
intergovernmental revenues. These amounts are deferred and recognized as an inflow of
resourcesintheperiodthattheamountsbecomeavailable.
7. Compensated absences payable Ͳ The City's sick leave policy permits employees to
accumulate earned but unused sick pay benefits. Upon termination, sick pay is paid out,
between0Ͳ100%basedonlengthofservice.
fund financial statements when earned. Expenditures for accumulated compensated
absenceshavebeenrecordedinthegovernmentalfundsonlyiftheyhavematured,(e.g.,
resultingfromemployeeresignationsandretirements).Paymentsaregenerallypaidoutof
theGeneralFund.
8. LongͲtermobligationsͲInthegovernmentͲwidefinancialstatementsandproprietaryfund
typeinthefundfinancialstatements,longͲtermdebtandotherlongͲtermobligationsare
reported as liabilities in the applicable governmental activities, businessͲtype activities or
proprietaryfundtypestatementofnetposition.Bondpremiumsanddiscountsaredeferred
andamortizedoverthelifeofthebondsusingthestraightͲlinemethod,whichapproximates
theeffectiveinterestmethod.Bondissuecostsareexpensedatissuance.Bondspayableare
reportednetoftheapplicablepremiumsanddiscounts,ifapplicable.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts,aswellasdebtissuancecosts,duringthecurrentperiod.Thefaceamountofdebt
issued is reported as other financing sources. Premiums received on debt issuances are
reportedasotherfinancingsourceswhilediscountsondebtissuancesarereportedasother
financing uses. Issuance costs, whether or not withheld from the actual debt proceeds
received,andprincipalpayments,arereportedasdebtserviceexpenditures.
9. NetpositionͲNetpositioninthegovernmentͲwideandproprietaryfundsiscategorizedas
netinvestmentincapitalassets;restrictedorunrestricted.Netinvestmentincapitalassets,
isthedifferencebetweenthecostofcapitalassets,lessaccumulateddepreciation,reduced
by the outstanding balances of any borrowings used for the acquisition, construction or
improvementofthoseassets;anddeferredinflowsandoutflowsofresourcesrelatedtodebt;
CityofAventura,Florida
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–netpositionisapplied.
10. Fund balance Ͳ The City follows GASB Statement No. 54, Fund Balance Reporting and
Governmental Fund Type Definitions which requires that governmental fund financial
statementspresentfundbalancesbasedonclassificationsthatcompriseahierarchythatis
basedprimarilyontheextenttowhichtheCityisboundtohonorconstraintsonthespecific
purposes for which amounts in the respective governmental funds can be spent. The
classificationsusedinthegovernmentalfundfinancialstatementsareasfollows:
NonspendableͲThisclassificationincludesamountsthatcannotbespentbecausethey
are either (a) not in spendable form or (b) are legally or contractually required to be
maintainedintact.“Notinspendableform”includesitemsthatarenotexpectedtobe
convertedtocash(suchasinventoriesandprepaidamounts)anditemssuchaslongͲterm
amountofloansandnotesreceivable,aswellaspropertyacquiredforresale.Thecorpus
(or principal) of a permanent fund is an example of an amount that is legally or
contractuallyrequiredtobemaintainedintact.
purposes determined by a formal action of thegovernment’s highest level of decision
making. The City Commission is the highest level of decisionͲmaking authority for the
government that can, by adoption of an ordinance prior to the end of the fiscal year,
commitfundbalance.Onceadopted,thelimitationimposedbytheordinanceremainsin
placeuntilasimilaractionistaken(theadoptionofanotherordinance)toremoveorrevise
thelimitation.
AssignedͲThisclassificationincludesamountsthatareconstrainedbytheCity’sintentto
be used for a specific purpose but are neither restricted nor committed. The City
CommissionhasbyresolutionauthorizedtheCityManagertoassignfundbalance.The
Flow assumption: The City considers restricted amounts to be spent first when both
restricted and unrestricted fund balance is available unless there are legal
documents/contracts that prohibit doing this, such as in grant agreements requiring
dollarfordollarspending.Additionally,theCitywouldfirstusecommittedfundbalance,
followedbyassignedfundbalanceandthenunassignedfundbalancewhenexpenditures
are incurred for purposes for which amounts in any of the unrestricted fund balance
classificationscouldbeused.
11. FundbalancepoliciesͲTheCity’spolicyistomaintainanadequateGeneralFundbalanceto
meet seasonal shortfalls in cash flow and reduce susceptibility to emergency and
unanticipatedexpendituresand/orrevenueshortfalls.
period beginning with the year from which the reserve funds fell below the 10%
threshold.
into. Encumbrances outstanding at yearͲend represent the estimated amount of
expenditureswhichwouldresultifunperformedpurchaseordersandothercommitmentsat
yearͲend are completed. Encumbrances lapse at yearͲend; however, the City generally
intends to honor purchase orders and other commitments in process. As a result,
encumbrancesoutstandingatyearͲendarereͲappropriated,attheCityManager’sdiscretion,
inthenextfiscalyear.
13. Use of estimates Ͳ The preparation of financial statements in conformity with accounting
principlesgenerallyacceptedintheUnitedStatesofAmericarequiresmanagementtomake
estimates and assumptions that affect certain reported amounts and disclosures.
Accordingly,actualresultscoulddifferfromthoseestimates.
14. Subsequentevents–SubsequenteventsareevaluatedbymanagementthroughMarch24,
2022,thedatethefinancialstatementswereavailableforissuance.
CityofAventura,Florida
Property taxes are assessed as of January 1 each year and are first billed (levied) and due the
followingNovember1.
UnderFloridalaw,theassessmentofallpropertiesandthecollectionofallcounty,municipal,school
board and special district property taxes are consolidated in the Offices of the County Property
Appraiser and 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
municipalitiestolevypropertytaxesatarateofupto10mills($10per$1,000ofassessedtaxable
All property is reassessed according to its fair market value as of January 1 each year. Each
assessment roll is submittedtotheExecutiveDirectorof theFloridaDepartmentofRevenuefor
review to determine if the assessment rolls meet all of the appropriate requirements of State
Statutes.
with discounts at the rate of 4% if paid in the month of November, 3% if paid in the month of
December,2%ifpaidinthemonthofJanuaryand1%ifpaidinthemonthofFebruary.Taxespaid
duringthemonthofMarcharewithoutdiscount,andallunpaidtaxesonrealandtangiblepersonal
propertybecomedelinquentandliensareplacedonApril1oftheyearfollowingtheyearinwhich
thetaxeswereassessed.ProceduresforthecollectionofdelinquenttaxesbyMiamiͲDadeCounty
are provided for in the laws of Florida. There were no material delinquent property taxes as of
September30,2021.
7 of the Florida Administrative Code. These rules provide guidance and establish the general
operating procedures for the administration of the SBA. Additionally, the Office of the Auditor
GeneraloftheStateofFloridaperformstheoperationalauditoftheactivitiesandinvestmentofthe
The Finance DirectorisdesignatedasinvestmentofficeroftheCityandisresponsibleforinvestment
decisionsandthedayͲtoͲdayadministrationofthecashmanagementprogram.Theinvestmentpolicy
establishes permitted investments, asset allocation, issuer limits, credit rating requirements and
maturitylimitstoprotecttheCity'sassets.AllinvestmentsecuritiesareheldbyaTrustcustodian,and
aremanagedbyfinancialadvisors.Ingeneral,theCity'spolicyallowstoinvestinthefollowing:(1)
securitiesandobligationsoftheUnitedStatesandits agencies;(2)nonnegotiableinterestbearing
timedepositsorsavingsaccountsprovidedthatsuchdepositsaresecuredbycollateralasprescribed
by the Florida Security for Public Deposits Act, Chapter 280, Florida Statutes; (3) repurchase
agreementscollateralizedbyfullorgeneralfaithandcreditobligationsoftheU.S.Governmentor
Agency securities; (4) the Florida Local Government Surplus Funds Trust Fund “SBA”; (5)
intergovernmentalinvestmentpoolsauthorizedpursuanttotheFloridaInterlocalCooperationAct,
CityofAventura,Florida
"Board"). The Board contracts with investment advisory firms and approves any new investment
vehicles presented by the consultants. The investment policy statement in effect for fiscal year
endedSeptember30,2021waslastamendedonAugust25,2021.
AtSeptember30,2021,theCityhad$2,500,000ofcashinescrowheldbyanagent,relatedtocertain
trafficimprovementsandotherconstructionprojects.
As of September 30, 2021, the City's cash, cash equivalents and investments consisted of the
following:
Cash,cashequivalentsandinvestments:
StateBoardofAdministrationͲ
SBA,FloridaPRIME $ 28,867,239
Governmentbonds 11,044,905
investments $ 65,319,664
Fiduciaryfundinvestments:
Equitysecurities $ 44,798,157
Governmentsecurities 5,358,101
Totalfiduciaryinvestments $ 68,763,481
InterestRateRisk
This is the risk that changes in market interest rates will adversely affect the fair value of an
investment.Generally,thelongerthematurityofaninvestment,thegreaterthesensitivityofitsfair
valuetochangesinmarketinterestrates.TheCity’spolicyisthatunlessmatchedwithspecificcash
flow,theCitywillnotdirectlyinvestinsecuritiesmaturingmorethanseven(7)yearsfromthedate
of purchase. Because of inherent difficulties in accurately forecasting cash flow requirements, a
portion of the portfolio should becontinuously invested in readily available funds to ensurethat
properliquidityismaintainedtomeetongoingobligations.
The City does not have a formal investment policy for its pension funds that limits investment
maturitiesasameansofmanagingitsexposuretofairvaluelossesarisingfromincreasinginterest
Fair LessThan 1Ͳ5 6Ͳ10 Than
InvestmentType Value 1Year Years Years 10Years
CityInvestments:
StateBoardofAdministrationͲ
SBA,FloridaPRIME $ 28,867,239 $ 28,867,239 $ Ͳ $ Ͳ $ Ͳ
Governmentbonds 11,044,905 101,344 10,943,561 Ͳ Ͳ
Corporatebonds 5,605,370 985,041 4,620,329 Ͳ Ͳ
Governmentmortgagebacked
securities 3,661,643 Ͳ 981,392 1,880,109 800,142
Governmentagencies 3,624,800 848,351 2,776,449 Ͳ Ͳ
Municipal/provincialbonds 1,649,570 Ͳ 1,649,570 Ͳ Ͳ
Assetbackedsecurities 1,392,538 Ͳ 1,392,538 Ͳ Ͳ
Governmentissuedcommercial
mortgagebackedsecurities 810,356 Ͳ 810,356 Ͳ Ͳ
Internationalbonds 300,000 Ͳ 300,000 Ͳ Ͳ SubtotalͲCityInvestments 56,956,421 30,801,975 23,474,195 1,880,109 800,142 FiduciaryFundInvestments:
Corporatebonds 4,648,278 504,548 2,192,777 1,755,703 195,250
U.S.treasuries 4,390,763 708,289 2,525,444 787,884 369,146
U.S.agencies 967,338 125,028 351,650 319,085 171,575
Fixedincomefunds 1,400,562 661,576 624,810 114,176 Ͳ SubtotalͲFiduciaryFund 11,406,941 1,999,441 5,694,681 2,976,848 735,971 TotalInvestments $ 68,363,362 $ 32,801,416 $ 29,168,876 $ 4,856,957 $ 1,536,113
TimetoMaturity(inYears)
CityofAventura,Florida
highly rated securities with minimum ratings of A (long term securities), AͲ1/PͲ1 (short term
securities), and AAAm (money market mutual funds). The Finance Director shall determine the
appropriateactionforanyinvestmentheldthatisdowngradedbelowtheminimumratingbyoneor
more rating agencies. U.S. government securities or obligations explicitly guaranteed by the U.S.
governmentarenotconsideredtohavecreditriskexposure.
AA+ 19,446,572
Aaa 2,328,571
AAAm 28,867,239
NotRated 300,000
$ 56,956,421 FiduciaryFundInvestments:
A1 $ 293,100
A2 361,472
A3 259,938
AAA 3,147,982
AA 43,089
A 44,647
BAA1 54,577
BBB 56,808
BB 3,469
B 1,006
The City's policy is to maintain a diversified portfolio to minimize the risk of loss resulting from
concentration of assets in a specific issuer. Specific limits have been established which limit the
percentageof portfolioassets thatcanbeinvestedwithaspecificissuer.GASBStatementNo.40,
DepositandInvestmentRiskDisclosures,requiresdisclosurewhenthepercentageis5%ormorein
anyoneissuer.InvestmentsissuedorexplicitlyguaranteedbytheU.S.governmentandinvestments
in mutual funds, external investment pools, or other pooled investments are excluded from this
requirement.AtSeptember30,2021,theCityhadinvestmentsin theFederalNational Mortgage
Association(FannieMae)amountingto6.98%ofthetotalinvestmentsheldbytheCity.
Thepensionfundlimitsinvestmentsthatmaybeinvestedinanyoneissuertonomorethan5%of
plan’snetposition,otherthanthoseissuedbytheU.S.GovernmentoritsAgencies.Morethan5%
plan’snetposition,otherthanthoseissuedbytheU.S.GovernmentoritsAgencies.Morethan5%