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04-05-2011 Cu Commission City O CricManagers Susan Gottlieebb, Mayor Eric M. Soroka, dCMA -CM Zev Auerbach Avent g rdi City Clerk Bob Diamond i '� Teresa M. Soroka, M MC Teri Holzberg Billy Joel " ``" City Attorney Michael Stern 4. �` Weiss Scrota Helfman Luz Urbaez Weinberg Pastoriza Cole & Boniske APRILS, 2011 6p I m Government Center 19200 West Country Club Drive Aventura, Florida 33180 1. CALL TO ORDER\ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. AGENDA: Request for Deletions/Emergency Additions 4. SPECIAL PRESENTATIONS: Presentation to Employees for 10- years'service 5. CONSENT AGENDA: Matters included under the Consent Agenda are self - explanatory and are not expected to require discussion or review. Items will be enacted by one motion. If discussion is desired by any member of the Commission, that item must be removed from the Consent Agenda and considered separately. A. APPROVAL OF MINUTES: March 1, 2011 Commission Meeting March 24, 2011 Special Meeting B. MOTION TO RATIFY THE CITY MANAGER'S REAPPOINTMENT OF RAQUEL ROTHMAN, ESQ. AND BARBARA BUXTON, ESQ. AS SPECIAL MASTERS FOR THE CITY OF AVENTURA CODE ENFORCEMENT PROCESS C. A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA DECLARING CERTAIN PROPERTY LISTED UNDER THE ASSETS OF THE CITY AS SURPLUS TO THE NEEDS OF THE CITY; DESCRIBING THE MANNER OF DISPOSAL; AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO CARRY OUT THE AIMS OF THIS RESOLUTION; AND PROVIDING AN EFFECTIVE DATE. D. MOTION TO ACCEPT FOR FILING THE COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010 AND THE LETTER DATED MARCH 3, 2011 ATTACHED HERETO AS ATTACHMENT "A" April 5, 2011 E. A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA AUTHORIZING THE CITY MANAGER TO EXECUTE THE ATTACHED TRAFFIC CONTROL JURISDICTION AGREEMENT BETWEEN CORONADO CONDOMINIUM ASSOCIATION, INC., AND THE CITY OF AVENTURA; AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO CARRY OUT THE AIMS OF THIS RESOLUTION; AND PROVIDING AN EFFECTIVE DATE. F. A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA AUTHORIZING THE CITY MANAGER TO EXECUTE THE ATTACHED TRAFFIC CONTROL JURISDICTION AGREEMENT BETWEEN WILLIAMS ISLAND PROPERTY OWNERS ASSOCIATION, INC., AND THE CITY OF AVENTURA; AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO CARRY OUT THE AIMS OF THIS RESOLUTION; AND PROVIDING AN EFFECTIVE DATE. G. A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA AUTHORIZING THE CITY MANAGER TO EXECUTE THE ATTACHED TRAFFIC CONTROL JURISDICTION AGREEMENT BETWEEN ELDORADO TOWERS CONDOMINIUM ASSOCIATION, INC., AND THE CITY OF AVENTURA; AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO CARRY OUT THE AIMS OF THIS RESOLUTION; AND PROVIDING AN EFFECTIVE DATE. H. MOTION TO EXTEND THE TIME TO OBTAIN A BUILDING PERMIT FOR THE CONSTRUCTION OF THE NEW NORTHEAST PUBLIC LIBRARY BRANCH FOR A FURTHER SIX (6) MONTHS FROM MAY 4, 2011 TO NOVEMBER 4, 2011. 6. ZONING HEARINGS: None. 7. ORDINANCES: FIRST READING — PUBLIC INPUT: A. AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, AMENDING ORDINANCE NO. 2010 -10 WHICH ORDINANCE ADOPTED A BUDGET FOR THE 2010/2011 FISCAL YEAR BY REVISING THE 2010/2011 FISCAL YEAR OPERATING AND CAPITAL BUDGET AS OUTLINED IN EXHIBIT "A" ATTACHED HERETO; AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO 2 April 5, 2011 CARRY OUT THE AIMS OF THIS ORDINANCE; PROVIDING FOR AN EFFECTIVE DATE. B. AN ORDINANCE OF THE CITY OF AVENTURA, FLORIDA, AMENDING DIVISION 5 "ARTS AND CULTURAL CENTER ADVISORY BOARD" OF ARTICLE III "ADVISORY BOARDS" OF CHAPTER 2 "ADMINISTRATION" OF THE CITY CODE BY AMENDING SECTION 2 -191 "CREATION, COMPOSITION AND QUALIFICATIONS," SECTION 2 -192 "APPOINTMENT OF BOARD MEMBERS PROCESS ", SECTION 2 -193 "ADVISORY CAPACITY ", SECTION 2 -194 "RULES OF PROCEDURE; QUORUM ", AND SECTION 2 -195 "MISSION; JURISDICTION AND DUTIES "; PROVIDING FOR SEVERABILITY; PROVIDING FOR INCLUSION IN CODE; PROVIDING FOR EFFECTIVE DATE. 8. ORDINANCES: SECOND READING/PUBLIC HEARING: None. AN ORDINANCE OF THE CITY OF AVENTURA, FLORIDA, AMENDING PROVISIONS OF THE POLICE OFFICERS' RETIREMENT PLAN TO COMPLY WITH THE INTERNAL REVENUE CODE; PROVIDING FOR A REPEALER; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION; AND PROVIDING FOR AN EFFECTIVE DATE. 9. RESOLUTIONS — PUBLIC HEARING: None. 10. REPORTS 11. PUBLIC COMMENTS 12. OTHER BUSINESS: None. 13. ADJOURNMENT SCHEDULE OF FUTURE MEETINGS/EVENTS COMMISSION MEETING APRIL 14, 2011 9 AM 5 FL. EX.CONF.ROOM WORKSHOP MEETING APRIL 14, 2011 following 9AMmtg. 5 FL. EX.CONF.ROOM COMMISSION MEETING MAY 3, 2011 6PM COMMISSION CHAMBER This meeting is open to the public. In accordance with the Americans with Disabilities Act of 1990, all persons who are disabled and who need special accommodations to participate in this meeting because of that disability should contact the Office of the City Clerk, 305- 466 -8901, not later than two days prior to such proceeding. One or more members of the City of Aventura Advisory Boards may be in attendance and may participate at the meeting. Anyone wishing to appeal any decision made by the Aventura City Commission with respect to any matter considered at such meeting or hearing will need a record of the proceedings and, for such purpose, may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. Agenda items may be viewed at the Office of the City Clerk, City of Aventura Government Center, 19200 W. Country Club Drive, Aventura, Florida, 33180. Anyone wishing to obtain a copy of any agenda item should contact the City Clerk at 305- 466 -8901. 3 Th Cty MINUTES Aventura Government Center CITY COMMISSION MEETING 19200 W. Country Club Drive MARCH 1, 2011 6 PM Aventura, Florida 33180 1. CALL TO ORDER/ROLL CALL: The meeting was called to order by Mayor Susan Gottlieb at 6 p.m. Present were Commissioners Zev Auerbach, Billy Joel, Michael Stern, Vice Mayor Bob Diamond, Mayor Gottlieb, City Manager Eric M. Soroka, City Clerk Teresa M. Soroka and City Attorney David Wolpin. Commissioners Teri Holzberg and Luz Urbaez Weinberg were absent. As a quorum was determined to be present, the meeting commenced. 2. PLEDGE OF ALLEGIANCE: Led by Raya Elias Pushett. 3. AGENDA: REQUESTS FOR DELETIONS /EMERGENCY ADDITIONS: None. 4. SPECIAL PRESENTATIONS: None. 5. CONSENT AGENDA: A motion to approve the Consent Agenda was offered by Commissioner Joel, seconded by Commissioner Auerbach, passed unanimously and the following action was taken: A. APPROVAL OF MINUTES: February 1, 2011 Commission Meeting February 17, 2011 Workshop Meeting B. Resolution No. 2011 -19 was adopted as follows: A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA AUTHORIZING THE CITY MANAGER TO EXECUTE THE ATTACHED TRAFFIC CONTROL JURISDICTION AGREEMENT BETWEEN MYSTIC POINTE MASTER ASSOCIATION AND THE CITY OF AVENTURA; AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO CARRY OUT THE AIMS OF THIS RESOLUTION; AND PROVIDING AN EFFECTIVE DATE. C. Resolution No. 2011 - 20 was adopted as follows: A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, AUTHORIZING THE CITY MANAGER ON BEHALF OF THE CITY TO EXECUTE AND OTHERWISE ENTER INTO THE ATTACHED MUTUAL AID AGREEMENT BETWEEN THE CITY OF AVENTURA AND THE CITY OF SUNNY ISLES BEACH FOR LAW ENFORCEMENT ACTIVITIES; AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO CARRY OUT THE AIMS OF THIS RESOLUTION; AND PROVIDING FOR AN EFFECTIVE DATE. D. Resolution No. 2011 -21 was adopted as follows: A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA DECLARING CERTAIN PROPERTY LISTED UNDER THE ASSETS OF THE CITY AS SURPLUS TO THE NEEDS OF THE CITY; DESCRIBING THE MANNER OF DISPOSAL; AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO CARRY OUT THE AIMS OF THIS RESOLUTION; AND PROVIDING AN EFFECTIVE DATE. E. Resolution No. 2011 -22 was adopted as follows: A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA AUTHORIZING THE CITY MANAGER TO EXECUTE THE ATTACHED TRAFFIC CONTROL JURISDICTION AGREEMENT BETWEEN NORTH TOWER AT THE POINT CONDOMINIUM ASSOCIATION AND THE CITY OF AVENTURA; AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO CARRY OUT THE AIMS OF THIS RESOLUTION; AND PROVIDING AN EFFECTIVE DATE. F. Resolution No. 2011 -23 was adopted as follows: A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA AWARDING AND LETTING A BID /CONTRACT FOR BID NO. 11 -02- 14-2, NE 29 AVENUE, NE 187 ST AND NE 34 AVENUE MILLING AND RESURFACING IMPROVEMENTS, TO H&R PAVING, INC. AT THE BID PRICE OF $247,229; AUTHORIZING THE CITY MANAGER TO EXECUTE ASSOCIATED CONTRACTS; AUTHORIZING THE CITY MANAGER TO TAKE NECESSARY AND EXPEDIENT ACTION TO CARRY OUT THE AIMS OF THIS RESOLUTION; PROVIDING FOR THE APPROPRIATION AND ALLOCATION OF FUNDS FOR SAID BID AWARD; AND PROVIDING FOR AN EFFECTIVE DATE. G. Resolution No. 2011 -24 was adopted as follows: A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA AUTHORIZING THE CITY MANAGER TO EXECUTE THE ATTACHED TRAFFIC CONTROL JURISDICTION AGREEMENT BETWEEN AVENTURA LAKES ASSOCIATION AND THE CITY OF AVENTURA; AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO CARRY OUT THE AIMS OF THIS RESOLUTION; AND PROVIDING AN EFFECTIVE DATE. H. Resolution No. 2011 -25 was adopted as follows: A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, AUTHORIZING THE CITY MANAGER ON BEHALF OF THE CITY TO EXECUTE AND OTHERWISE ENTER INTO THE ATTACHED MUTUAL 2 AID AGREEMENT BETWEEN THE CITY OF AVENTURA AND THE TOWN OF SURFSIDE FOR LAW ENFORCEMENT ACTIVITIES; AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO CARRY OUT THE AIMS OF THIS RESOLUTION; AND PROVIDING FOR AN EFFECTIVE DATE. I. Resolution No. 2011 - 26 was adopted as follows: A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, AUTHORIZING THE CITY MANAGER ON BEHALF OF THE CITY TO EXECUTE AND OTHERWISE ENTER INTO THE ATTACHED MUTUAL AID AGREEMENT BETWEEN THE CITY OF AVENTURA AND THE CITY OF NORTH MIAMI BEACH FOR LAW ENFORCEMENT ACTIVITIES; AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO CARRY OUT THE AIMS OF THIS RESOLUTION; AND PROVIDING FOR AN EFFECTIVE DATE. J. The following motion was approved as follows: MOTION TO APPROVE PRESENTATION OF KEY TO THE CITY TO JUDY DRUCKER 6. ZONING HEARINGS: QUASI - JUDICIAL PUBLIC HEARINGS — Please be advised that the following items on the Commission's agenda are quasi-judicial in nature. If you wish to object or comment upon any of these items, please inform the Mayor when she requests public comments. An opportunity for persons to speak on each item will be made available after the applicant and staff have made their presentations on each item. All testimony, including public testimony and evidence, will be made under oath or affirmation. Additionally, each person who gives testimony may be subject to cross - examination. If you refuse either to be cross - examined or to be sworn, your testimony will be given its due weight. The general public will not be permitted to cross - examine witnesses, but the public may request the Commission to ask questions of staff or witnesses on their behalf. Persons representing organizations must present evidence of their authority to speak for the organization. Further details of the quasi - judicial procedures may be obtained from the Clerk. None. 7. ORDINANCES: FIRST READING /PUBLIC INPUT: Mr. Wolpin read the following ordinance by title: AN ORDINANCE OF THE CITY OF AVENTURA, FLORIDA, AMENDING PROVISIONS OF THE POLICE OFFICERS' RETIREMENT PLAN TO COMPLY WITH THE INTERNAL REVENUE CODE; PROVIDING FOR A REPEALER; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION; AND PROVIDING FOR AN EFFECTIVE DATE. A motion for approval was offered by Commissioner Stern, and seconded by Commissioner Joel. Mayor Gottlieb opened the public hearing. There being for speakers, the public hearing was closed. The motion for approval passed unanimously. 8. ORDINANCES: SECOND READING /PUBLIC HEARING: None. 3 9. RESOLUTIONS — PUBLIC HEARING: None. 10. REPORTS: As presented. 11. PUBLIC COMMENTS: 12. OTHER BUSINESS: Raya Elias Pushett. 13. ADJOURNMENT: There being no further business to come before the Commission at this time, after motion made, seconded and unanimously passed, the meeting adjourned at 6:20 p.m. Teresa M. Soroka, MMC, City Clerk Approved by the Commission on Anyone wishing to appeal any decision made by the City Commission with respect to any matter considered at a meeting or hearing will need a record of the proceedings and, for such purpose, may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. 4 MINUTES (Ay of CITY COMMISSION Aventura Government Center WORKSHOP MEETING 19200 W. Country Club Drive MARCH 24, 2011 9 AM Aventura, Florida 33180 CALL TO ORDER/ROLL CALL: The meeting was called to order at 9:00 a.m. by Mayor Susan Gottlieb. Present were Commissioners Teri Holzberg, Billy Joel, Michael Stern, Vice Mayor Bob Diamond, Mayor Gottlieb, City Manager Eric M. Soroka, City Clerk M. Teresa Soroka and City Attorney David M. Wolpin. Commissioners Zev Auerbach and Luz Urbaez Weinberg were absent. As a quorum was determined to be present, the meeting commenced. (Item #2 addressed first) 1. ARTS AND CULTURAL CENTER ADVISORY BOARD (City Manager): Mr. Soroka advised the Commission that the term of office of the current members of this Board have expired and suggested that prior to reappointment, the Commission review the current Ordinance establishing this Board and recommended amendments that may better define the role and mission of the Board. Amendments include providing that the Board consist of a minimum of seven and a maximum of nine members and advertising for new members, with efforts made to include representation of all age groups on the Board. CITY MANAGER SUMMARY: Consensus to place revised Ordinance on the April 5, 2011 meeting agenda for first reading. 2. INTERSECTION SAFETY CAMERA LOCATIONS (City Manager): Sgt. Jeff Burns of the Police Traffic Division addressed the Commission and requested three additional red light cameras be installed in the City at Miami Gardens Dr. /Biscayne Blvd., Country Club Dr. /westbound Lehman Causeway entrance; and 199 St. /Biscayne Blvd. due to the number of accidents and safety concerns. CITY MANAGER SUMMARY: Consensus to proceed. 3. NALEO CONFERENCE (Commissioner Weinberg): Deferred. The April Commission Workshop meeting was changed to April 14, 2011 and a Special Commission meeting scheduled at 9 a.m. prior to the Workshop Meeting. 4. ADJOURNMENT: There being no further business to come before the Commission at this time, after motion made, seconded and unanimously passed, the meeting adjourned. Teresa M. Soroka, MMC, City Clerk Approved by the Commission on Anyone wishing to appeal any decision made by the City Commission with respect to any matter considered at a meeting or hearing will need a record of the proceedings and, for such purpose, may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. APRIL 5, 2011 AGENDA ITEM 5 -B CITY OF AVENTURA OFFICE OF THE CITY MANAGER MEMORAND M TO: City Commission FROM: Eric M. Soroka, ICMA -CM, City -r ag_ r f DATE: March 4, 2011 SUBJECT: Re- Appointment of Special Masters for ode Enforcement Process April 5, 2011 City Commission Meeting Agenda Item 5 -6 RECOMMENDATION It is recommended that the City Commission ratify the City Manager's re- appointment of Raquel Rothman, Esq. and Barbara Buxton, Esq. as Special Masters for the City of Aventura Code Enforcement process. BACKGROUND Section 4 of Ordinance 96 -14 which established the City's Code Enforcement Process provides for the City Manager to appoint Special Masters, subject to City Commission ratification, for a term of one year. The above - referenced individuals are submitted to you for re- appointment as Special Masters. If you have any questions please feel free to contact me. EMS /act Attachment CC01730 -11 CITY OF AVENTURA OFFICE OF THE CITY MANAGER MEMORANDUM TO: City Commission FROM: Eric M. Soroka, ICMA -CM, O an. a er DATE: March 29, 2011 SUBJECT: Resolution Declaring Equipmen urplus April 5, 2011 Commission Meeting Agenda Item S RECOMMENDATION It is recommended that the City Commission adopt the attached Resolution declaring certain equipment as surplus to the needs of the City. BACKGROUND Section 2 -258 of the City Code of Ordinances provides that any property owned by the City which has become obsolete or which has outlived its usefulness may be disposed of in accordance with procedures established by the City Manager, so long as the property has been declared surplus by a resolution of the City Commission. If you have any questions, please feel free to contact me. EMS /act Attachment CC01736 -11 RESOLUTION NO. 2011 - A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA DECLARING CERTAIN PROPERTY LISTED UNDER THE ASSETS OF THE CITY AS SURPLUS TO THE NEEDS OF THE CITY; DESCRIBING THE MANNER OF DISPOSAL; AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO CARRY OUT THE AIMS OF THIS RESOLUTION; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Manager desires to declare certain property as surplus to the needs of the City; and WHEREAS, Ordinance No. 2000 -09 provides that all City -owned property that has been declared surplus cannot be disposed of prior to the preparation and formal approval of a resolution by the City Commission. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, THAT: Section 1. Recitals Adopted. The above recitals are hereby confirmed and adopted herein. Section 2. The property listed on Exhibit "A" has been declared surplus and is hereby approved for disposal. Section 3. The City Manager is authorized to dispose of the property listed on Exhibit "A" through a public auction, sale, trade -in, transfer to other governmental agency or, if of no value, discarded. Section 4. The City Manager is hereby authorized to do all things necessary to carry out the aims of this Resolution. Section 5. This Resolution shall become effective immediately upon its adoption. The foregoing Resolution was offered by Commissioner who moved its adoption. The motion was seconded by Commissioner , and upon being put to a vote, the vote was as follows: Commissioner Zev Auerbach Commissioner Teri Holzberg Commissioner Billy Joel Commissioner Michael Stern Commissioner Luz Urbaez Weinberg Vice Mayor Bob Diamond Mayor Susan Gottlieb Resolution No. 2011 - Page 2 PASSED AND ADOPTED this 5 th day of April, 2011. SUSAN GOTTLIEB, MAYOR ATTEST: TERESA M. SOROKA, MMC CITY CLERK APPROVED AS TO LEGAL SUFFICIENCY: CITY ATTORNEY CITY OF AVENTURA COMMUNITY SERVICES DEPARTMENT MEMORANDU TO: Eric M. Soroka, ICMA -CM, City - a ■ er FROM: . M. Sherman, Director • Com unity Sery 7411111%0 BY: Gayle Vasile, Parks & Recreation ° _ ' ities Manager DATE: March 21, 2011 SUBJECT: Surplus Property Please have the City property listed below declared as surplus property. These items have become unusable or inadequate for department purposes: Wooden Bookshelf — Property Tag 2747 Portable Tennis Ball Machine — Property Tag 1951 Portable Tennis Ball Machine — Property Tag 1952 RMS /gf RMS11o11 CITY OF AVENTURA FINANCE DEPARTMENT MEMORANDUM TO: City Commission FROM: Eric M. Soroka, ICMA -CM, City anager BY: Brian K. Raducci, Finance Director DATE: March 10, 2011 SUBJECT: Comprehensive Annual Financial Report (CAFR) Fiscal Year Ended September 30, 2010 April 5, 2011 City Commission Meeting Agenda Item n Recommendation It is recommended that the City Commission approve the following motion: "Motion to accept for filing of the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2010 and the letter dated March 3, 2011 attached hereto as Attachment A." Background The CAFR, a letter from our independent auditors — Keefe, McCullough & Co., LLP dated March 3, 2011 and a staff - prepared memorandum were distributed to the City Commission on March 10, 2011. The Rules of the Auditor General, Chapter 10.550, require that the CAFR be filed as an official record at a public meeting. This motion satisfies that requirement. In addition, the auditors have requested that their letter dated March 3, 2011, identified as Attachment A on the staff - prepared memorandum, be accepted for filing with the City Commission. A representative from the auditing firm will be present at the April 5 City Commission meeting. However, since the CAFR is the City's responsibility, I respectfully request that any questions be discussed with the City Manager prior to the meeting. BKR /bkr CITY OF AVENTURA FINANCE DEPARTMENT MEMORANDUM TO: City Commission FROM: Eric M. Soroka, ICMA -CM, City anager BY: Brian K. Raducci, Finance Director DATE: March 10, 2011 SUBJECT: Comprehensive Annual Financial Report (CAFR) Fiscal Year Ended September 30, 2010 April 5, 2011 City Commission Meeting Agenda Item al) Recommendation It is recommended that the City Commission approve the following motion: "Motion to accept for filing of the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2010 and the letter dated March 3, 2011 attached hereto as Attachment A." Background The CAFR, a letter from our independent auditors — Keefe, McCullough & Co., LLP dated March 3, 2011 and a staff - prepared memorandum were distributed to the City Commission on March 10, 2011. The Rules of the Auditor General, Chapter 10.550, require that the CAFR be filed as an official record at a public meeting. This motion satisfies that requirement. In addition, the auditors have requested that their letter dated March 3, 2011, identified as Attachment A on the staff- prepared memorandum, be accepted for filing with the City Commission. A representative from the auditing firm will be present at the April 5 City Commission meeting. However, since the CAFR is the City's responsibility, I respectfully request that any questions be discussed with the City Manager prior to the meeting. BKR /bkr ATTACHMENT A A LETTER FROM OUR INDEPENDENT AUDITORS - KEEFE, MCCULLOUGH & CO., LLP DATED MARCH 3, 2011 Keefe, McCullough & Co., LLP .c"`16."" Certified Public Accountants March 3, 2011 To the Honorable Mayor, Member of the City Commission and City Manager City of Aventura, Florida 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 Aventura, Florida (the "City "), for the year ended September 30, 2010. However, we did not audit the financial statements of the City of Aventura Police Officers' Retirement Plan Pension Trust Fund, which represent 100% of the total assets and the total revenues of the fiduciary funds. Those financial statements were audited by other auditors whose reports have been furnished to us. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards and OMB Circular A -133, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our engagement letter to you dated May 5, 2010. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the current year, except for the implementation of: • GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets. • GASB Statement No. 53, Accounting and Financial Reporting for Derivative Instruments. The adoption of the above GASB Statements did not have a significant impact on the City's financials statements. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. There are no significant transactions that have been recognized in the financial statements in a different period than when the transaction occurred. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City's financial statements were as follows: • Defined Benefit Pension Plan - The net pension asset is calculated as the difference between the annual required contribution and the actual contributions made by the City. The City with input from its pension actuary developed the actuarial assumptions based on relevant criteria. Management reviewed and approved the financial statements estimates derived from the pension actuarial report. 6550 N. Federal Highway Suite 410 Fort Lauderdale, FL 33308 954.771.0896 954.938.9353 (F) www.kmccpa.com City of Aventura, Florida - 2 - March 3, 2011 • Depreciation of capital assets - Depreciation is provided on a straight -line basis over the respective estimated useful lives ranging from 3 to 40 years. The City has informed us they used all relevant facts available to them at the time of acquisition to make the best judgments about the depreciation methods and estimated useful lives of capital assets. • Net OPEB Obligation - In Florida, state statutes require that the employer make health insurance coverage available to retirees at the employer's group rate. This creates an implicit cost arising as a result of the blended rate premium since retiree health care costs, on average, are higher than those of active employee healthcare costs. In addition, the City's policy is to pay those premiums for certain department directors at retirement. The City obtained an actuarial valuation to record its estimated cost and liability in accordance with the requirements of GASB Statement No. 45, Accounting for Financial Reporting by Employers for Post - Employment Benefits Other than Pensions (OPEB). We evaluated the key factors and assumptions used by management to develop and report the above significant estimates in determining that they are reasonable in relation to the financial statements taken as a whole. Difficulties Encountered in Performing the Audit We encountered no difficulties in dealing with management in performing and completing our audit. Corrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all misstatements detected as a result of our audit procedures. Most of these journal entries were provided directly to us by the City's Finance Department and did not identify material weaknesses in the reporting /internal control structure of the City of Aventura, Florida. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors' report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated March 3, 2011. Management Consultations with Other Independent Auditors In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditors' opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. City of Aventura, Florida - 3 - March 3, 2011 Other Audit Findings or Issues We are to discuss with the City Commission any major issues discussed with management in connection with our retention as auditors, including the application of accounting principles or auditing standards. There were no issues discussed with management in connection with our retention as auditors. This information is intended solely for the use of the City Commission and management of the City and is not intended to be and should not be used by anyone other than these specified parties. We would be pleased to discuss any questions that you may have. Kqe, 7/frc &i1 ,It g ‘zP KEEFE, McCULLOUGH & CO., LLP City of Aventura, Florida Financial and Compliance Report for the Building Better Communities Bond Projects in Accordance with Miami -Dade County, Florida Ordinance 05 -47 September 30, 2010 Contents Independent Auditor's Report on the Financial Statement of the Building Better Communities Bond Projects in Accordance with the Program- Specific Audit Option under Miami -Dade County, Florida Ordinance 05 -47, Applicable Resolutions and Building Better Communities Administrative Rules 1 Schedule of Expenditures and Notes to the Schedule of Expenditures of Building Better Communities Bond Projects 2 Independent Auditor's Report on Compliance With Requirements That Could have a Direct and Material Effect on the Building Better Communities Bond Projects and on Internal Control over Compliance in Accordance with the Program- Specific Audit Option under the Miami -Dade County, Florida Ordinance 05 -47, Applicable Resolutions and Building Better Communities Administrative Rules 3 — 4 Schedule of Findings and Questioned Costs 5 • McGladrey Independent Auditor's Report on the Financial Statement of the Building Better Communities Bond Projects in Accordance with the Program - Specific Audit Option under Miami -Dade County, Florida Ordinance 05 -47, Applicable Resolutions and Building Better Communities Administrative Rules The Honorable Mayor and City Commissioners City of Aventura, Florida We have audited the accompanying Schedule of Expenditures of the Building Better Communities Bond Projects (the "Program ") of the City of Aventura, Florida for the year ended September 30, 2010. This financial statement is the responsibility of the City of Aventura, Florida's management. Our responsibility is to express an opinion on the financial statement of the Program based on our audit. 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; and Miami -Dade County, Florida Ordinance 05 -47, Applicable Resolutions and Building Better Communities Administrative Rules. Those standards and Miami -Dade County, Florida Ordinance 05 -47, Applicable Resolutions and Building Better Communities Administrative Rules, require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the Schedule of Expenditures of the Building Better Communities Bond Projects referred to above presents fairly, in all material respects, the expenditures of the Building Better Communities Bond Projects of the City of Aventura, Florida for the year ended September 30, 2010, under the Miami -Dade County, Florida Ordinance 05- 47, Applicable Resolutions and Building Better Communities Administrative Rules, in conformity with accounting principles generally accepted in the United States of America. /_ es, L �� Miami -Dade County, Florida February 22, 2011 McGladrey is the brand under which RSM McGladrey, Inc. and McGladrey & Pullen, LLP serve clients' business needs. Member of RSM International network, a network of The two firms operating as separate legal entities in an alternative practice structure. Independent accounting, tax and consulting firms 1 City of Aventura, Florida Schedule of Expenditures and Notes to the Schedule of Expenditures of Building Better Communities Bond Projects Year Ended September 30, 2010 Project Expenditures Planning, design, and administration $ 144,210 Construction 1,806,324 Total expenditures $ 1,950,534 Notes to Schedule Note 1: The Building Better Communities Bond Projects was created on November 2, 2004 by Miami -Dade County, Florida, Ordinance 05 -47 for the purpose of providing municipal governments with funding to develop, improve, rehabilitate and restore or acquire real property. Note 2: The Schedule of Expenditures of the Building Better Communities Bond Projects (the "Schedule ") presents the expenditures /activities that were allowed for under the Building Better Communities Bond Program of the City of Aventura, Florida for the year ended September 30, 2010. The Schedule was prepared on the modified accrual basis of accounting. 2 McGladrey Independent Auditor's Report on Compliance with Requirements That Could Have a Direct and Material Effect on the Building Better Communities Bond Projects and on Internal Control over Compliance in Accordance with the Program- Specific Audit Option under the Miami -Dade County, Florida Ordinance 05 -47, Applicable Resolutions and Building Better Communities Administrative Rules The Honorable Mayor and City Commissioners City of Aventura, Florida Compliance We have audited the compliance of the City of Aventura, Florida (the "City ") with the types of compliance requirements described in the Miami -Dade County, Florida Ordinance 05 -47, Applicable Resolutions and Building Better Communities Administrative Rules that could have a direct and material effect on the Building Better Communities Bond Projects for the year ended September 30, 2010. Compliance with the requirements of laws, regulations, contracts, and grants applicable to this project is the responsibility of the City's management. Our responsibility is to express an opinion on the City's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and Miami -Dade County, Florida Ordinance 05 -47, Applicable Resolutions and Building Better Communities Administrative Rules (Ordinance 05 -47). Those standards and Ordinance 05 -47 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on the Building Better Communities Bond Projects occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the City's compliance with those requirements. In our opinion, the City complied, in all material respects, with the requirements referred to above that could have a direct and material effect on the Building Better Communities Bond Projects for the year ended September 30, 2010. McGladrey is the brand under which RSM McGladrey, Inc. and McGladrey & Pullen, LLP serve clients' business needs. Member of RSM International network, a network of The two firms operating as separate legal entities in an alternative practice structure. Independent accounting, tax and consulting firms 3 Internal Control Over Compliance The management of the City is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to the Building Better Communities Bond Projects. In planning and performing our audit, we considered the City's internal control over compliance with the requirements that could have a direct and material effect on its Building Better Communities Bond Projects to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with Miami -Dade County, Florida Ordinance 05 -47, applicable resolutions and Building Better Communities Administrative Rules, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct noncompliance with a type of compliance requirement of a Building Better Communities Bond projects program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of the Building Better Communities Bond Projects will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. This report is intended solely for the information and use of the Honorable Major, City Commissioners, management of the City, and management of Miami -Dade County, Florida, and is not intended to be and should not be used by anyone other than these specified parties. 1C01-(a.14,7 y��sr�.y L e— Miami -Dade County, Florida February 22, 2011 4 City of Aventura, Florida Schedule of Findings and Questioned Costs Section I - Summary of Auditor's Results Building Better Communities Bond Projects Internal control over program: Material weakness(es) identified? Yes X No Significant deficiency(ies) identified that are not considered to be material weakness(es)? Yes X No Type of auditor's report issued on compliance for bond project - specific program: Unqualified Any audit findings disclosed that are required to be reported in accordance with Ordinance 05 -47? Yes X No 5 COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF AVENTURA FLO RID A FOR THE YEAR END SEPTEMBER 30, 2010 a . �, — 4 5 , Prepared By The Finance Department Brian K. Raducci, Finance Director Brent Rogers, Controller CITY OF AVENTURA, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS September 30, 2010 PAGES INTRODUCTORY SECTION: Letter of Transmittal i -v List of Principal Officials v i Organizational Chart vii Certificate of Achievement for Excellence in Financial Reporting viii FINANCIAL SECTION: Independent Auditor's Report 1 -2 Management's Discussion and Analysis (Unaudited) 3 -12 Basic Financial Statements: Government -Wide Financial Statements: Statement of Net Assets 13 Statement of Activities 14 -15 Fund Financial Statements: Balance Sheet - Governmental Funds 16 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets 17 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 18 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 19 Statement of Net Assets - Proprietary Fund 20 Statement of Revenues, Expenses and Change in Net Assets - Proprietary Fund 21 Statement of Cash Flows - Proprietary Fund 22 Statement of Fiduciary Net Assets - Police Officers' Retirement Plan Fund 23 CITY OF AVENTURA, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS (continued) September 30, 2010 PAGES Statement of Changes in Fiduciary Net Assets - Police Officers' Retirement Plan Fund 24 Notes to Financial Statements 25- 49 REQUIRED SUPPLEMENTARY INFORMATION: Schedule of Revenues, Expenditures and. Change in Fund Balance - Budget and Actual - General Fund 50 -52 Schedule of Funding Progress - Police Officers' Retirement Plan Fund 53 Schedule of Contributions From the Employer and the State of Florida - Police Officers' Retirement Plan Fund 54 Notes to Required Supplementary Information 55 OTHER FINANCIAL INFORMATION: Combining Financial Statements: Combining Balance Sheet - Other Nonmajor Governmental Funds 56 -57 Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) - Other Nonmajor Governmental Funds 58 -59 Budgetary Schedules: Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Special Revenue Funds 60 -64 Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Debt Service Funds 65 -68 Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Capital Projects Funds 69 STATISTICAL SECTION (NOT COVERED BY INDEPENDENT AUDITORS' REPORT): Table 1 - Net Assets by Component 70 Table 2 - Changes in Net Assets 71 -72 Table 3 - Governmental Activities Tax Revenues by Source 73 Table 4 - Fund Balances of Governmental Funds 74 CITY OF AVENTURA, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS (continued) September 30, 2010 PAGES Table 5 - Changes in Fund Balances of Governmental Funds 75 -76 Table 6 - General Governmental Tax Revenues by Source 77 Table 7 - Assessed Value and Estimated Actual Assessed Value of Taxable Property 78 Table 8 - Property Tax Rates - Direct and Overlapping Governments 79 -80 Table 9 - Principal Property Taxpayers 81 Table 10 - Property Tax Levies and Collections 82 Table 11 - Ratios of Outstanding Debt by Type 83 Table 12 - Ratios of General Bonded Debt Outstanding 84 Table 13 - Direct and Overlapping Governmental Activity Debt 85 Table 14 - Legal Debt Margin Information 86 Table 15 - Demographic and Economic Statistics 87 Table 16 - Occupational Employment by Group - Miami -Dade County, Florida 88 Table 17 - Full -Time Equivalent Government Employees by Function 89 Table 18 - Operating Indicators by Function 90 Table 19 - Capital Asset Statistics by Function/Program 91 COMPLIANCE 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 92 -93 Independent Auditors' Report on Compliance with Requirements that Could Have a Direct and Material Effect on Each Major Program and on Internal Control over Compliance in Accordance with OMB Circular A -133 94 -95 Independent Auditors' Report to City Management 96 -97 Schedule of Expenditures of Federal Awards 98 Notes to Schedule of Expenditures of Federal Awards 99 Schedule of Findings and Questioned Costs 100 INTRODUCTORY SECTION . [ rt City of Aventura crreor Government Center 19200 West Country Club Drive Aventura, Florida 33180 SUSAN GOTTLIEB MAYOR COMMISSIONERS ZEV AUERBACH March 3, 2011 BOB DIAMOND TERRI HOLZBERG BILLY JOEL To the Honorable Mayor, MICHAEL STERN Members of the City Commission Luz URBAEZ WEINBERG and Citizens of the City Of Aventura, Florida ERIC M. SOROKA, ICMA -CM CITY MANAGER In accordance with Section 11.45, Florida Statutes and Section 4.11 of the City of Aventura (the "City ") Charter, submitted herewith is the City's Comprehensive Annual Financial Report (the "CAFR ") for the fiscal year ended September 30, 2010. The financial statements included in this report conform to the generally accepted accounting principles in the United States ( "GAAP ") as prescribed by the Governmental Accounting Standards Board ( "GASB "). The City is responsible for the accuracy of the data and the completeness and fairness of the presentation, including all disclosures. The financial statements have been audited by Keefe, McCullough & Co., LLP., C.P.A.'s. The independent auditors have issued an unqualified opinion that this report fairly presents the financial position of the City and complies with all reporting standards noted above. The contents of this report are aimed at compliance with GASB pronouncements, including Statement No. 34, requiring the preparation of government -wide financial statements on a full accrual basis of accounting for all funds and including Management's Discussion and Analysis. Also included are additional and enhanced Statistical Tables required by GASB Statement No. 44. THE REPORTING ENTITY AND ITS SERVICES The City was incorporated on November 7, 1995 and is a political subdivision of the State of Florida. The City operates under a commission - manager form of government and provides General Government, Public Safety and Community Services to its residents and business community. The Mayor and six (6) Commissioners are responsible for establishing the City's policies. The Mayor and Commission appoint the City Manager who is the Chief Administrative Officer of the City and is responsible for implementing policies adopted by the Commission. This report includes all of the funds for which the City is financially accountable. Although the Miami - Dade Board of County Commissioners, Miami -Dade District School Board, South Florida Water Management District and Florida Inland Navigation District levy and collect taxes on property located within the City's corporate limits, financial information on these taxing authorities is not included in this report since each has a separate elected governing body, are legally separate and are fiscally independent of the City. Annual financial reports of these units of government are available upon request from each authority. PHONE: 305- 466 -8900 • FAX: 305- 466 -8939 www.cityofaventura.com ECONOMIC CONDITIONS AND OUTLOOK The City serves an area of approximately 4 square miles with a population of approximately 31,000 residents. Prior to incorporation, the City received services from Miami -Dade County (the "County ") as a part of their unincorporated municipal services taxing unit. The City received no real property, facilities or equipment from the County upon incorporation. Fiscal Year 2010 The City's combination of upscale residential and commercial developments resulted in a taxable value of approximately $8.1 billion within a land area of less than 4 square miles. During fiscal year 2010, the Country, as well as the South Florida area had continued to experience an economic downturn that has resulted in lower home values, a national credit crunch, an increase in the jobless rate and revenue shortfalls at all levels of government. The financial impact of all of these challenges is more fully described in the Management's Discussion and Analysis section of this report. MAJOR INITIATIVES During the first ten (10) years of the City's existence, the City has focused on the infrastructure needs of the community. In recent years, the City has also directed its efforts to address the change in demographics toward a younger community and provide cultural arts opportunities for its residents. Continuing the priority of maintaining its infrastructure, during fiscal year 2010, the City completed the following major capital improvements: • NE 199 Street / Country Club Drive Turning Lane • Veterans Park Restroom Additions • Biscayne Boulevard Intersection Traffic Improvements Phase II — Williams Island Road • Yacht Club Way Bridge Repairs • Aventura Arts & Cultural Center • Biscayne Boulevard Intersection Traffic Improvements Phase II — NE 191 Street • Don Soffer Exercise Trail Improvements Project • Hospital District Asphalt Overlay and Drainage Improvements • Aventura Arts & Cultural Center & ACES Informational Sign On October 23, 2010, in front of a sold out crowd, the City held the Grand Opening Celebration for its new Arts and Cultural Center. The event, starring Patti LuPone and the facility were very well- received by those in attendance. The facility was completed in June 2010 in order to provide a variety of performing arts and cultural programming to the community. Since its opening on August 25, 2003, the Aventura Charter Elementary School ( "School ") has achieved several milestones in the City's short history. The School was the first within the City's boundaries and the first municipal sponsored charter school in Miami -Dade County. The 2009/10 school year represented the seventh year of operations of the School. The School has been well received and has been at full capacity since its inception. The School has obtained academic success receiving an "A" grade issued by the State of Florida for the past six (6) years. In order to address the Florida Class Size Mandate Legislation, ten (10) new classrooms were added prior to the 2010 school year. This addition insured that the School met the class size requirements. The school serves 972 students. FINANCIAL INFORMATION Internal Accounting Control Management of the City is responsible for establishing and maintaining internal controls designed to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in ii conformity with GAAP. Internal control is designed to provide reasonable, but not absolute, assurance that these 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. All internal control evaluations occur within the above framework. We believe that the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. Budgetary Control An annual appropriated budget is adopted for all governmental funds with the exception of the Charter School Fund, Federal Forfeiture Fund and Law Enforcement Trust Fund (Special Revenue Funds). In accordance with City Ordinance, appropriations are legally controlled at the Department level. Encumbrance accounting, under which purchase orders and other commitments for the expenditure of funds are recorded in the accounting records and is utilized throughout the fiscal year. Overview of Financial Activity The accompanying financial statements reflect that the City has continued to expand its services to meet the demands of its residential and business communities. A summary of the major financial activities is included in the Management Discussion & Analysis Section of this report. Fund Balances Fund balances represent the accumulation of resources from prior years which are available to fund future years' budgets and for use as a reserve for unexpected events in the future. The unreserved fund balance at September 30, 2010 for the General Fund is approximately $36,350,000, representing a significant portion of the fiscal year 2011 budget. Of this amount, approximately $15,433,000 is used to fund a capital reserve account in the fiscal year 2011 budget which may be allocated by the City Commission to fund budget needs in the current or later fiscal years. The fund balances in each special revenue, debt service and capital projects fund are designated for use for the specific legal purposes of each fund. Retirement Programs The City contributed to four (4) defined contribution pension plans based on employee classifications created in accordance with Internal Revenue Code Section 401(a). The plans currently cover all full -time employees of the City. Under these plans, the City contributes between 7% and an amount equal to the annual IRS maximum, depending on the employee classification. There are no employee contributions. Employer contributions for the fiscal year ended September 30, 2010 were approximately $817,000. A defined contribution pension plan provides pension benefits in return for services rendered, provides an individual account for each participant and specifies how contributions to the individual's account are to be determined instead of specifying the amount of benefits the individual is to receive. Under a defined contribution pension plan, the benefits a participant will receive depend solely on the amount contributed to the participant's account, the returns earned on investments on those contributions, and forfeitures of other participant's benefits that may be reallocated to such participant's account. In order to encourage employees to supplement the defined contribution plan, a deferred compensation program is also available to all full -time employees. Under this program, employees may voluntarily elect to defer a portion of their salary to future years. Both programs are administered by the ICMA Retirement Corporation under a trust agreement. The plan assets are separate and the City does not exercise any control or fiduciary responsibility over the assets. Therefore, the assets, liabilities and transactions are not included in the City's financial statements. As discussed in the Notes to the Financial Statements, the City, through collective bargaining with the City's police officers agreed to establish a defined benefit retirement program covering all sworn officers. iii This program is funded by a combination of City and employee contributions and state insurance premium taxes. Please see Note 12 in the Notes to the Financial Statements for a detailed discussion of the retirement program. Financing Programs and Debt Administration The City currently has four (4) outstanding long -term debt issues. At September 30, 2010, the principal balance outstanding totaled $30,815,000. The non - refunded Portion of the Series 1999 Revenue Bonds issued from the Florida Municipal Loan Council, Inc, is secured solely by a covenant to budget and appropriate the required debt service payments each year. The loan is structured the same as a serial bond issue with principal payments due on April 1 and interest payments due on April 1 and October 1st of each year with the final maturity on April 1, 2029. Debt service requirements average approximately $485,000 per year over the 19 -year life of the bonds. The interest rate varies from 3.200% to 5.125% depending on the maturity date. The Series 2000 Revenue Bonds are bank qualified debt, secured solely by a covenant to budget and appropriate the required debt service payments each year. This loan is structured the same as a serial bond issue with principal payments due on October 1 and semi - annual interest payments due on April 1 and October 1 of each year with the final maturity on October 1, 2020. Debt service requirements average approximately $535,000 per year over the 20 -year life of the obligation. The interest rate is locked at 5.05 %. The Series 2002 Revenue Bonds were financed through the Florida Intergovernmental Finance Commission. The loan is secured solely by a covenant to budget and appropriate the required debt service payments each year. This loan is structured the same as a serial bond issue with principal payments due August 1 and interest payments due on February 1 and August 1 of each year with the final maturity on August 1, 2032. Debt service requirements average approximately $850,000 per year over the 30 -year life of the obligation. The interest rate varies from 2.5% to 5.0% depending on the maturity date. Due to a very favorable interest rate environment, in September of 2010, the City issued a partial advance refunding of the original Series 1999 Revenue Bonds with a Bank Loan (described below) that resulted in a more than $1.1M NPV savings over the life of the loan. The remaining portion of the original Series 1999 Revenue Bonds was refunded in February of 2011 and resulted in a nearly $530,000 NPV savings over the life of its loan. The Series 2010 Revenue Bonds are bank qualified debt, secured solely by a covenant to budget and appropriate the required debt service payments each year. This loan is structured the same as a serial bond issue with principal payments due on April 1 and semi - annual interest payments due on April 1st and October 1 of each year with the final maturity on April 1, 2029. Debt service requirements average approximately $775,000 per year over the 19 -year life of the obligation. The interest rate is locked at 3.42 %. OTHER INFORMATION Independent Audit In accordance with Section 11.45(3)(a) (4), Florida Statutes, and Article I, Section 4.11 of the City Charter, the City engaged the firm of Keefe, McCullough & Co., LLP, to perform the independent audit of the City's accounts and records. The independent auditors' reports are included in the Financial section. Certificate of Achievement The Government Finance Officers Association of the United States and Canada ( "GFOA ") awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Aventura for its CAFR for the fiscal year ended September 30, 2009. This was the fourteenth consecutive year that the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must iv publish an easily readable and efficiently organized CAFR. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report 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. Acknowledgements The preparation of this report on a timely basis could not have been accomplished without the efficient and dedicated services of the entire Finance Department. We express our appreciation to all members of the Department who assisted and contributed to its preparation. We also wish to thank the City Commission for their interest and support in planning and conducting the City's financial operations in a responsible and progressive manner. Respectfully miffed, Eric M. Soroka, A -CM Brian K. Raducci City Manager Finance Director v CITY OF AVENTURA, FLORIDA LIST OF PRINCIPAL OFFICIALS As of September 30, 2010 Title Name Mayor Susan Gottlieb Commissioner Zev Auerbach Commissioner Bob Diamond Commissioner Teri Holzberg Commissioner Billy Joel Commissioner Michael Stern Commissioner Luz Urbaez Weinberg City Manager Eric M. Soroka Finance Director Brian K. Raducci Community Services Director Robert M. Sherman City Clerk Teresa M. Soroka Community Development Director Joanne Carr Police Chief Steven Steinberg Information Technology Director Karen J. Lanke Charter School Principal Julie Alni Arts & Cultural Center General Manager Steven Clark City Attorney Weiss Serota Helfman Pastoriza Cole & Boniske,P.L. City Auditor Keefe, McCullough & Co., LLP vi CITY OF AVENTLIRA Organizational Chart Residents = :1 I City Attorney City Manager I Cfty Clerk Leglai a}eryiees Budget Preperagon Mirwhas Customer Service Record* Retention Card Moods Cancel Support: Pommel Sesame PnbSC'S#fety Comlxlixtity # anCe Community Services Development trt tkapar�q ht Department Department Deputation 0, g Pokoe gaining Finariceaticonseng Community Facilitieti Patrol Zoning Purclesam PatkeSeautiatation tr nHty A ` * funding Inspections Mk Menegentetn ROVeteiedien Canine Meet ebOns Code Faftecernelit Public Tr Tadao Enforcement Economic Development Moore tanse cy Preprredness I Licensee Sceoal Ewes Renee Nutad Charter School Arts& C Information g° Department c;' Center Tecurokhgy ! I Department .. Department R-8 School Facility Management Infuriation Management Performi Aria Programming Communications vii Certificate of Achievement for Excellence in Financial Reporting Presented to City of Aventura Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended Septernber 30, 2009 A Certificate of Achievement for Excellence in Financial Reportmg is presented by the Government finance Officers Association of the United States and Canada to government tams and plibhc employee retirement systems whose comprehensive annual fumatial reports (CAW achieve the highest standards in government accounting and financial rep' 00,.10164 Pr. 40°1° is 4. :7N, 9 0e. 4444 . - President ( ii "),.. 111, 04000 44 4. * * AdeAlt, WYT Executive Director viii FINANCIAL SECTION Pk\ E Keefe, McCullough & Co., LLP Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Honorable Mayor Members of the City Commission and City Manager City of Aventura, Florida We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund and the aggregate remaining fund information of the City of Aventura, Florida (the "City "), as of and for the year ended September 30, 2010, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the City of Aventura Police Officers' Retirement Plan Pension Trust Fund, which represent 100% of the total assets and the total revenues of the fiduciary funds. Those financial statements were audited by other auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to the amounts included for the City of Aventura Police Officers' Retirement Plan Pension Trust Fund, is based on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit and the report of other auditors' provides a reasonable basis for our opinions. In our opinion, based on our audit and the report of other auditors, the 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, 2010, and the respective changes in financial position and, where applicable, cash flows, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated March 3. 2011, . on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. 6550 N. Federal Highway Suite 410 or Fort Lauderdale, FL 33308 or 954.771,0896 a 954938.9353 (F) g www,kmccpa corn City of Aventura, Florida Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and the pension schedules of funding progress and contributions from the employer and the State of Florida on pages 3 through 12 and 53 through 54, respectively, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an . appropriate operational, economic, or historical context. We and the other auditors have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's financial statements as a whole. The introductory section, combining and individual fund statements and schedules, budgetary comparison information, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations, and is also not a required part of the financial statements. The combining and individual fund statements and schedules, budgetary comparison information, and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it. l<. ee fte, Vfric eut1o,it dt co., LL) KEEFE, McCULLOUGH & CO., LLP Fort Lauderdale, Florida March 3, 2011 2 CITY OF AVENTURA, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS September 30, 2010 As management of the City of Aventura (the "City "), we offer readers of the City's financial statements this narrative overview and analysis of the City's financial activities for the fiscal year ended September 30, 2010. We encourage readers to consider the information presented herein in conjunction with the Letter of Transmittal, which can be found on pages i through v of this report. All amounts, unless otherwise indicated, are expressed in thousands of dollars. Financial Highlights • The City's total net assets increased by 5 6.3 million over the course of this year's operations. Net assets of our business -type activities increased by $ 0.2 million, and the net assets of our governmental activities increased by $ 6.1 million. • The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $ 106.7 million (net assets). Of this amount, $ 37.8 million (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. • At the end of the current fiscal year, unreserved fund balance for the General Fund was $ 36.4 million or 128% of total General Fund expenditures. Overview of the Financial Statements The financial section of this annual report consists of four (4) parts — management's discussion and analysis (this section), the basic financial statements, required supplementary information, and a supplementary information section that presents combining and individual fund statements and schedules. Financial Section MANAGEMENT'S DISCUSSION AND ANALYSIS BASIC FINANCIAL STATEMENTS Government -Wide (Full Accrual) Fund Governmental Activities Governmental (Modified Accrual) Business -Type Activities Proprietary (Full Accrual) (No Fiduciary Activities) Fiduciary (Full Accrual) Notes to the Financial Statements REQUIRED SUPPLEMENTARY INFORMATION Supplementary Information — Combining and Individual Fund Statements and Schedules 3 CITY OF AVENTURA, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS September 30, 2010 Major Features of the Basic Financial Statements Government -Wide Financial Statements Fund Financial Statements Governmental Funds Proprietary Funds Fiduciary Funds Scope Entire City government Activities of the City that Activities of the City that Instances in which the (except fiduciary activities) are not proprietary or are operated similar to City is the trustee or fiduciary private business agent for someone else's resources Required financial * Statement of net assets * Balance sheet * Statement of net assets * Statement of fiduciary statements * Statement of activities * Statement of revenues, * Statement of revenues, net assets expenditures. and expenses, and changes * Statement of changes changes in fund balances in net assets in fiduciary net assets *Statement of cash flows Accounting basis Accrual accounting and Modified accrual Accrual accounting and Accrual accounting and and measurement economic resources focus accounting and current economic resources focus economic resources focus focus financial resources focus Type of asset/ All assets and liabilities. both Only assets expected to All assets and liabilities, All assets and liabilities, liability information financial and capital, and be used up and liabilities both financial and capital, both short -terra and short -term and long -terra that come due during the and short-term and lone -term year or soon thereafter, ling -term no capital assets and long- term liabilities included Basic Financial Statements Government -wide financial statements. The focus of the government -wide financial statements is on the City's overall financial position and its activities. Reporting is similar to that of a private- sector business. The government -wide financial statements report information about the City as a whole and about its activities in a way that helps answer questions about the City's financial health and whether the current year activities contributed positively or negatively to that health. The City's government -wide financial statements include the statement of net assets and statement of activities. As described below, these statements do not include the City's fiduciary activities because resources of these funds cannot be used to finance the City's activities. However, the financial statements of fiduciary activities are included in the City's fund financial statements because the City is financially accountable for those resources, even though they belong to other parties. • The Statement of Net Assets presents information on the assets held and liabilities owed by the City, both long and short -term. Assets are reported when acquired by the City and liabilities are reported when they are incurred, regardless of the timing of the related cash flows to acquire these assets or liquidate such liabilities. For example, the City reports buildings and infrastructure as assets even though they are not available to pay the obligations incurred by the City. On the other hand, the City reports liabilities, such as litigation claims, even though these liabilities might not be paid until several years into the future. 4 CITY OF AVENTURA, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS September 30, 2010 The difference between the City's total assets and total liabilities is net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the City's financial position is improving or deteriorating. Although the City's purpose is not to accumulate net assets, in general, as this amount increases it indicates that the City's financial position is improving over time. • The Statement of Activities presents the 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 of the government -wide financial statements distinguish City functions that are principally supported by taxes and intergovernmental revenue (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 City's governmental activities include general government, public safety and community services. The City's business -type activities include stormwater utility. Fund financial statements. Unlike goverment-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 for 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 three (3) categories: governmental funds, proprietary funds and fiduciary funds. Governmental funds. Financial statements consist of a balance sheet and a statement of revenues, expenditures, and change 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 but do not include capital assets such as land and buildings. The difference between a fund's total assets and total liabilities is 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 that were collected during the current period or very shortly after the end of the year. Expenditures are recorded when incurred. 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 different accounting basis are used to prepare governmental fund financial statements and government -wide financial statements, there are often significant differences between the totals presented. For this reason, there is an analysis after the governmental funds balance sheet that reconciles the total fund balances for all governmental funds to the amount of net assets presented in the governmental activities column on the statement of net assets. 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 assets as reported in the governmental activities column in the statement of activities. 5 CITY OF AVENTURA, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS September 30, 2010 Proprietary funds. Financial statements consist of a statement of net assets, statement of revenues, expenses, and changes in fund net assets and statement of cash flows. These statements are prepared on an accounting basis that is similar to the basis used to prepare the government - wide financial statements. For financial reporting purposes, proprietary funds are grouped into Enterprise Funds and Internal Service Funds. 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 statements. Internal Service funds are used to account for services provided and billed on an internal basis. The City does not have any Internal Service Funds. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The City has one major enterprise fund, the Stormwater Utility fund. A statement of cash flows is presented at the fund financial statement level for proprietary funds, but no equivalent statement is presented in the government -wide financial statements for either governmental activities or business -type activities. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statement because the resources of those funds are not available to support the City's own programs. Fiduciary financial statements consist of a statement of fiduciary net assets and a statement of changes in fiduciary net assets. The City reports one fiduciary fund to account for the Police Officers' Retirement Plan. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. Required Supplementary Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning various issues such as a comparison between the City's adopted and final budget and actual financial results for its General Fund and major special revenue funds (if applicable). The City adopts an annual appropriated budget for its governmental funds. A budgetary comparison schedule has been provided for the General Fund and major special revenue funds (if applicable) to demonstrate compliance with this budget. Required supplementary information is also presented for the City's pension plan including a schedule of funding progress and schedule of employer and State of Florida contributions. Combining and Individual Fund Statements and Schedules Combining statements referred to earlier in connection with nonmajor governmental, internal service and fiduciary funds are presented immediately following the required supplementary information. 6 CITY OF AVENTURA, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS September 30, 2010 Government -Wide Financial Analysis The table below presents a summary of net assets as of September 30, 2010 and 2009, derived from the government -wide Statement of Net Assets: Net Assets (in thousands) Governmental Business -Type Activities Activities Total 2010 2009 2010 2009 2010 2009 Current and other assets $ 44,300 $ 43,324 $ 679 $ 546 $ 44.979 $ 43,870 Capital assets 90,874 87,056 7,616 7,580 98,490 94,636 Total assets 135,174 130,380 8,295 8,126 143,469 138,506 Long -term liabilities 32.979 34,217 - 32.979 34,217 Other liabilities 3,809 3,892 7 16 3,816 3,908 Total liabilities 36.788 38,109 7 16 36,795 38, 125 Net assets: Invested in capital assets. net of related debt 60,321 54,916 7,616 7,580 67,937 62,496 Restricted 895 1,592 - - 895 1,592 Unrestricted 37,170 35,763 672 530 37,842 36,293 Total net assets $ 98,386 $ 92,271 $ 8,288 $ 8,110 $ 106,674 $ 100.381 As noted earlier, net assets may serve over time as a useful indication of a government's financial position. At the close of the most recent fiscal year, the City's assets exceeded its liabilities by $ 107 million. The largest portion of the City's net assets is net assets invested in capital assets net of related debt and is 61 % of total net assets. This category reflects its investment in capital assets net of any outstanding related debt used to acquire these assets. The City uses these capital assets to provide services to the citizens of the City; consequently these net assets are not available for future spending. Although the capital assets are shown net of debt, it should be noted that the resources needed to repay this debt must be provided from other sources. The next largest portion of the City's net assets is unrestricted and is 38% of total net assets. Unrestricted net assets represent resources that are available for spending. Restricted net assets represent 1% of total net assets. Restricted net assets represent resources that are subject to external restrictions on how they can be used. Capital assets and invested in capital assets, net of related debt, increased $ 3.8 million and $ 5.4 million, respectively in the governmental activities primarily due to the construction of the Arts and Cultural Center facility and payment of principal on outstanding debt. Current and other assets and unrestricted net assets in the governmental activities increased by $ 1 million and $ 1.5 million, respectively, due to the increase in cash which primarily resulted from higher than anticipated revenues from utility service taxes, licenses and peiiilits and fines and forfeitures and lower than anticipated 401(a) retirement contributions due to the use of related forfeitures. There were no significant changes in business -type activities. Over time, increases and decreases in net assets measure whether the City's financial position is improving or deteriorating. Property taxes decreased $ 1.9 million due to the reduction in the City's taxable value caused by the continued decline in the housing market. Licenses and permits revenue increased by $ 0.3 million due to a slight rebound in building activity. 7 CITY OF AVENTURA, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS September 30, 2010 The table below presents a summary of changes in net assets for the years ended September 30, 2010 and 2009, as derived from the government -wide Statement of Activities: Changes in Net Assets (in thousands) Governmental Business -Type Activities Activities Total 2010 2009 2010 2009 2010 2009 Revenues: Program revenues: Charges for services $ 6,781 $ 5,479 $ 843 $ 803 $ 7,624 $ 6,282 Operating grants and contributions 7,663 7,726 - - 7.663 7,726 Capital grants and contributions 2,466 2,360 175 107 2,641 2,467 General revenues: Property taxes 13,254 15,189 - - 13,254 15.189 Other taxes 7,363 7,452 - - 7,363 7.452 Franchise fees 3,687 3,644 - - 3,687 3,644 Intergovernmental revenues 3,839 3,578 - - 3,839 3,578 Other revenues 731 746 3 2 734 748 Total revenues 45,784 46,174 1,021 912 46,805 47,086 Expenses: General government 4,574 6,793 - - 4,574 6,793 Public safety 18,461 16,107 - - 18,461 16,107 Community services 15,060 12,667 - - 15,060 12,667 Interest on long -term debt 1,574 1,642 - - 1,574 1,642 Stormwater utility - - 843 652 843 652 Total expenses 39,669 37,209 843 652 40,512 37,861 Increase in net assets before transfers 6,115 8,965 178 260 6,293 9.225 Transfers - - - - - Change in net assets 6,115 8,965 178 260 6,293 9,225 Net assets, beginning 92,271 83,306 8,110 7,850 100.381 91,156 Net assets, ending $ 98,386 $ 92,271 $ 8,288 $ 8.110 $ 106,674 $ 100.381 Financial Analysis of the City of Aventura's Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Governmental Funds The focus of the City's governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. 8 CITY OF AVENTURA, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS September 30, 2010 The General Fund is the City's chief operating fund. At end of the current fiscal year, unreserved fund balance of the General Fund was $ 36.4 million while the total fund balance reached $ 36.5 million. Much of the unreserved fund balance will be utilized in future years to fund various capital needs and to maintain a Hurricane Recovery Fund. As a measure of the General Fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total general fund expenditures. Unreserved fund balance represents 127 % of total general fund expenditures, while total fund balance represents 128 % of that same amount. The fund balance of the City's General Fund increased by $ 2.1 million during the current fiscal year. Key factors of this increase are as follows: • An increase in licenses and permits revenue of $ 0.1 million primarily due to higher than anticipated building activity. • An increase in charges for services revenue of $ 0.3 million primarily due to an increase in the revenue generated from the Police Services Agreement. • An increase in fines and forfeitures revenue of $ 1 million primarily due to the continuation of the City's Intersection. Safety Camera Program. • A decrease of $ 0.1 million in insurance costs due to lower general liability and property premiums. • A decrease of $ 0.07 million in utility costs due to the installation of two high efficiency chillers at the Government Center. The Charter School Fund is used to record the operations of the Aventura City of Excellence School. The School's intergovernmental revenues increased by $ 0.3 million primarily due to the addition of 8 students for grade levels kindergarten through third grade (32 new students). Additionally, expenditures decreased $ 1.8 million with the construction of 10 additional classrooms being completed in the prior year. Debt Service Fund 2000 Series is used to record principal retirement and did not have any significant changes from the prior year. The Arts and Cultural Fund is used to account for revenues and expenditures used to fund the construction and equipment for the Arts and Cultural Center. The net change in fund balance of $ 1.7 million is due to current year construction costs which were in excess of current year intergovernmental revenues received. This excess was offset by transfers in of $ 0.9 million from the General Fund and Park Development Funds to help cover the cost of construction. Proprietary Fund The proprietary fund showed a $ 0.2 million increase in net assets from the prior year. Operating revenue increased by approximately $ 41,000 from the prior year and expenses increased by approximately $ 192,000 primarily due to an increase in cost of sales and services of $ 176,000. General Fund Budgetary Highlights During the year, the original budget was amended and revenues and expenditures were increased by approximately $ 3.9 million as follows: • $ 1.5 million related to the reappropriation (in 2009/2010) of remaining capital funds budgeted in fiscal year 2008/09 for capital projects which were incomplete at the end of that fiscal year. 9 CITY OF AVENTURA, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS September 30, 2010 • $ 0.5 million related to the planned transfer to the Debt Service Fund — 1999 to effectuate the refinancing of the related debt. • $ 0.7 million related to the planned transfer to the Arts & Cultural Center Construction Fund to assist with funding the construction of the Arts & Cultural Center Facility. • $ 1.2 million related to operational overages in various departments which were offset by additional revenue. During the year, revenues exceeded budgetary estimates and expenditures were less than budgetary estimates, resulting in a positive variance in the net change in fund balance of approximately $ 2.0 million. As explained earlier, rnuch of the unreserved fund balance will be utilized in future years to fund various capital needs. Utility service taxes, licenses and permits, and fines and forfeitures revenue exceeded the revised budget by $ 0.9 million, $ 0.2 million and $ 1.6 million, respectively. Nondepartmental capital outlay was $ 15.9 million less than budgeted because the City budgets a reserve for future capital expenditures which accounts for the majority of the appropriated beginning fund balance. Capital Assets and Debt Administration Capital Assets As of September 30, 2010 and 2009, the City had $ 98.5 and $ 94.6, respectively, invested in a variety of capital assets, as reflected in the following schedule: Capital assets (in thousands, net of depreciation) Governmental Business -Type Activities Activities Total 2010 2009 2010 2009 2010 2009 Land $ 17,102 $ 17,102 $ - $ - $ 17,102 $ 17,102 Buildings 36,302 29,949 - 36.302 29,949 Improvements other than buildings 8,554 8.857 - 8.554 8,857 Furniture, machinery and equipment 4.098 3,116 4.098 3,116 Infrastructure 24.306 24,535 7,326 7,258 31,632 31,793 Construction in progress 512 3.497 290 322 802 3,819 'total $ 90.874 $ 87,056 $ 7,616 $ 7,580 $ 98,490 $ 94,636 Major capital asset events during the year included: • Construction in progress decreased by approximately $ 3 million due to the completion of the construction of the Arts and Cultural Center and new cost of construction of approximately $ 7 million. Additional information can be found in Note 6 — Capital Assets. Debt Administration As of year -end, the City had $ 30.8 million in debt outstanding compared to the $ 32.1 million last year, a 4% decrease. All debt is secured only by a covenant to budget and appropriate. 10 CITY OF AVENTURA, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS September 30, 2010 Defeasance of bonds - On September 23, 2010, the City issued $ 10,385,000 in Series 2010 Revenue Bonds with a rate of 3.42% to advance refund $ 10,580,000 (including a City contribution of $ 520,000) of outstanding Series 1999 Revenue Bonds. The gross proceeds of $ 10,905,000 were deposited in an irrevocable trust with an escrow agent to provide for the costs of issuance ($ 63,440) and debt service payments ($ 10,580,000 of principal and $ 261,560 of interest) on the call date of April 1, 2011. . The reacquisition price exceeded the net carrying amount of the old debt by $ 261,560. The amount is being netted against the new debt and amortized over the life of the new debt issued. The City advance refunded the Series 1999 Revenue bonds to reduce its total debt service payments over the next nineteen years by approximately $ 2,081,000 and to obtain an economic gain (difference between the present values of the debt service payments on the old and new debt, net of City's contribution) of approximately $ 1,110,200. The debt position of the City is summarized below and is more fully explained in Note 7: Bonded Debt and Notes Payable (in thousands) Governmental Business -Type Activities Activities Total 2010 2009 2010 2009 2010 2009 Non-Ad Valorem bonds $ 30.815 $ 32,140 $ - $ - $ 30,815 $ 32,140 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, school boards) primarily rely on property and a limited array of permitted other taxes (utility taxes, franchise fees and occupational licenses) as well as intergovernmental revenues for their governmental activities. For business -type activities and certain governmental activities (construction services and recreational programs), the user pays a related fee or charge associated with the service. The adopted operating and capital budget for fiscal year 2011 totals approximately $ 48.7 million, 3.00% higher (after eliminating capital) than the final operating and capital budget for fiscal year 2010. Over the past three (3) years, the City has experienced significant losses in property tax revenue. Between the economic recession that resulted in lower home values and voter- approved constitutional amendments that took effect last year, the City's taxable value has decreased from $ 9.439 billion to $ 7.244 billion. This represents a loss of 23.3% or $ 3.8 million in tax revenue compared to the 2009 tax roll year. It is important to note that for next year's budget cycle the taxable values are expected to decrease again due to the continuing decline in the housing market. The City has experienced a sharp reduction in building permits and development activity. The economic recession has negatively affected many of the City's other revenue sources as well. As far as expenditures are concerned, due to privatizing and outsourcing many City services over the years, completing $ 120 million in capital projects since 1996 and maintaining prudent reserve funds, the City has stabilized costs and is in a better position than most to weather the current economic slowdown. Prior year's comprehensive reevaluation of service levels and budget line items which resulted in operating cost reductions also played a key role in creating the foundation and financial stability for the City to respond to lower revenues as we prepared this year's budget. 11 CITY OF AVENTURA, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS September 30, 2010 Requests for Information This financial report is designed to provide our citizens, taxpayers, customers and investors and creditors with a general overview of the City's finances and to demonstrate the City's accountability. If you should have any questions pertaining to the information presented in this report or would like additional information, please contact the City's Finance Director at 19200 W. Country Club Drive, Aventura, Florida 33180. 12 CITY OF AVENTURA, FLORIDA STATEMENT OF NET ASSETS September 30, 2010 Governmental Business -Type Activities Activities Total ASSETS: Cash, cash equivalents and investments $ 40,852,797 $ 429,381 $ 41,282,178 Receivables, net of allowance for uncollectibles 555,647 - 555,647 Due from other governments 1 ,367,660 250,000 1,617,660 Prepaid expenses 77,894 - 77,894 Inventories 16,780 - 16,780 Bond issuance costs, net 410,595 - 410,595 Net pension asset 517,529 - 517,529 Restricted cash, cash equivalents and investments 500,657 - 500,657 Capital assets: Nondepreciable 17,614,224 290,709 17,904,933 Depreciable, net of accumulated depreciation 73,259,870 7,325,651 80,585,521 Total assets 135,173,653 8,295,741 143,469,394 LIABILITIES: Accounts payable 1,937,368 7,524 1,944,892 Accrued liabilities 936,299 - 936,299 Retainage payable 48,793 - 48,793 Due to other governments 1,278 - 1,278 Unearned revenues 628,616 - 628,616 Accrued interest payable 83,077 - 83,077 Due within one year: Compensated absences payable 606,305 - 606,305 Bonds payable 825,000 - 825,000 Due in more than one year: Compensated absences payable 1,818,915 - 1,818,915 Bonds payable 29,728,440 - 29,728,440 OPEB obligation 174,000 - 174,000 Total liabilities 36,788,091 7,524 36,795,615 NET ASSETS: Invested in capital assets, net of related debt 60,320,654 7,616,360 67,937,014 Restricted for: Police purposes 893.235 - 893,235 Capital improvements 2,246 - 2,246 Unrestricted 37,169,427 671,857 37,841,284 Total net assets $ 98,385,562 $ 8,288,217 $ 106,673,779 The accompanying notes to the financial statements are an integral part of these statements. 13 CITY OF AVENTURA, FLORIDA STATEMENT OF ACTIVITIES For the Year Ended September 30, 2010 Program Revenues Operating Capital Charges for Grants and Grants and FUNCTIONS /PROGRAMS: Expenses Services Contributions Contributions Governmental activities: General government $ 4,574,365 $ - $ 8,818 $ - Public safety 18,460,900 5,505,242 234,194 - Community services 15,059,743 1,275,753 7,420,157 2,465,574 Interest and fiscal charges 1,574,525 - - - Total governmental activities 39,669,533 6,780,995 7,663,169 2,465,574 Business -type activities: Stormwater Utility 843,251 842,867 - 175,303 Total $ 40,512,784 $ 7,623,862 $ 7,663,169 $ 2,640,877 General revenue: Taxes: Ad valorem taxes Utility service taxes Franchise fees Intergovernmental, not restricted for specific purposes Interest income Impact fees Miscellaneous Total general revenues and transfers Change in net assets Net assets at beginning of year Net assets at end of year The accompanying notes to the financial statements are an integral part of these statements. 14 Net Revenue (Expense) and Change in Net Assets Governmental Business -Type Activities Activities Total $ (4,565,547) $ - $ (4,565,547) (12,721,464) (12,721,464) (3,898,259) - (3,898,259) (1,574,525) (1,574,525) (22,759,795) (22,759,795) 174,919 174,919 (22,759,795) 174,919 (22,584,876) 13,253,848 - 13,253,848 7,362,899 - 7,362,899 3,686,885 - 3,686,885 3,838,972 - 3,838,972 310,885 3,320 314,205 101 - 101 420,352 - 420,352 28,873,942 3,320 28,877,262 6,114,147 178,239 6,292,386 92,271,415 8,109,978 100,381,393 $ 98,385,562 $ 8,288,217 $ 106,673,779 15 CITY OF AVENTURA, FLORIDA BALANCE SHEET - GOVERNMENTAL FUNDS September 30, 2010 Capital Debt Project Service Charter Arts and Fund Nonmajor 'Total General School Cultural Series Governmental Governmental Fund Fund Center 2000 Funds Funds ASSETS: Cash and cash equivalents and investments $ 37,519,126 $ 2,213.609 $ 11.214 $ 45,713 $ 1,063,135 $ 40.852,797 Restricted cash, cash equivalents and investments - - - 500.533 124 500,657 Accounts receivable, net 501,133 5.404) - 49,114 555,647 Due from other funds 137,826 - - - 137,826 Due from other governments 1,120,457 7.599 - - 239,604 1,367,660 Inventories 16.780 - 16,780 Prepaid expenditures 47,416 30,478 - - - 77,894 Total assets $ 39,342,738 $ 2,257,086 $ 11,214 $ 546,246 $ 1,351,977 $ 43.509,26] LIABILITIES AND FUND BALANCES: Liabilities: Accounts payable $ 1.475,534 $ 381.790 $ 11.214 $ - $ 68,830 $ 1.937,368 Accrued liabilities 327,028 210,619 398,652 936,299 Retainage payable 48,793 - - 48,793 Due to other governments - 1.278 - 1,278 Deferred revenue 1,04)7,04)4 - - - 114,115 1,121,119 Due to other funds - - 137,826 137,826 "Iotalliabilities 2,858,359 593,687 11,214 398.652 320.771 4,182,683 Fund balances: Reserved for: Encumbrances 75,627 222,562 298,189 Inventory 16,780 - - 16,780 Prepaid expenditures 47.416 30,478 - - 77,894 Unreserved: Designated for subsequent year expenditures in: General Fund 16,000,000 - 16,000,000 Special Revenue Fund - 1,410,359 - - - 1,410,359 Undesignated, reported in: General Fund 20,344.556 - - - 20,344,556 Special Revenue Funds - - - - 898.479 898.479 Debt Service Funds - - - 147,594 132,727 280,321 Total fund balances 36.484,379 1,663,399 - 147,594 1,031,206 39,326,578 Total liabilities and fund balances $ 39,342,738 $ 2,257,086 $ 11,214 $ 546.246 $ 1,351.977 $ 43,509,261 The accompanying notes to financial statements are an integral part of these statements. 16 CITY OF AVENTURA, FLORIDA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS September 30, 2010 Total Fund balances - governmental funds $ 39,326,578 Capital assets used in governmental activities are not financial resources and therefore, are not reported in the funds: The cost of capital assets is $ 121,059,782 Accumulated depreciation is (30,185,688) 90,874,094 Intergovernmental revenue is not available to pay for current period expenditures and, therefore, is deferred in the funds. 492,503 Net pension asset resulting from excess contributions to pension plans is not reported in the fund financial statements. 517,529 OPEB obligation resulting from deficiency of contributions to OPEB plans is not reported in the fund financial statements as it is not due and payable in the current period. (174,000) Other assets used in governmental activities are not financial resources and therefore are not reported in governmental funds: Deferred charge on bond issuance costs 410,595 Deferred loss on bond refunding 261,560 672,155 Long -term liabilities are not due and payable in the current period and, therefore, are not reported in the funds: Compensated absences (2,425,220) Bonds payable (30,815,000) Accrued interest payable (83,077) (33,323,297) Net assets of governmental activities $ 98,385,562 The accompanying notes to the financial statements are an integral part of these statements. 17 CITY OF AVENTURA, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS September 30, 2010 Capital Debt Project Service Charter Arts and Fund Nonmajor total General School Cultural Series Governmental Governmental Fund Fund Center 2000 Funds Funds REVENUES: Ad valorem taxes $ 13,253,848 $ - $ - $ - $ - $ 13,253,848 Utility service taxes 7,448,097 - - 7,448,097 Franchise fees 3.686,885 - - - 3,686,885 Intergovernmental 2.569,683 6,703.259 2,053,195 - 1,644,647 12,970,784 Licenses and permits 2.025,310 - - 2,025.310 Charges for services 1,907,798 414,996 - 2,322,794 Fines and forfeitures 2,889.746 - - 217,433 3,107,179 Impact fees - - - - 101 101 Interest income 260,882 15,724 - 25.484 8,795 310,885 Miscellaneous 104.308 321,974 - - 2,625 428.907 Total revenues 34,146.557 7,455,953 2,053,195 25.484 1.873,601 45,554,790 EXPENDITURES: Current: General government 4,360,999 - 4,360,999 Public safety 16,771.035 - - 194,773 16,965.808 Community services 4,527,830 6,345,125 - 1,077.116 11.950,071 Capital outlay 2,870,336 213,335 4.684,418 - 808,410 8,576,499 Debt service: Principal - - - 285,000 845.000 1.130,000 Advance refunding escrow - 520,000 520,000 Interest - 227,30 1,326,676 1,553.980 Trustee fees and other - - 89,766 89,766 Total expenditures 28,530,200 6.558,460 4,684,418 512,304 4,861,741 45,147,123 Excess (deficiency) of revenues over expenditures 5,616,357 897,493 (2.631,223) (486,820) (2.988,140) 407,667 OTHER FINANCING SOURCES (USES): Proceeds from refunding bonds - - 10,385.000 10.385.000 Transfers in 125,000 100,000 954,385 628,705 2,718,357 4,526,447 Transfers out (3,656.469) (446,778) - - (423,200) (4,526,447) Payment to refunded bond escrow agent - (10.321.560) (10.321,560) Total other financing sources (uses) (3,531,469) (346,778) 954,385 628.705 2,358,597 63,440 Net change in fund balances 2,084.888 550,715 (1.676,838) 141.885 (629,543) 471,107 FUND BALANCES. beginning 34,399,491 1,112,684 1.676.838 5,709 1,660,749 38,855,471 FUND BALANCES, ending $ 36,484,379 $ 1.663,399 $ - $ 147,594 $ 1.031,206 $ 39,326,578 The accompanying notes to financial statements are an integral part of these statements. 18 CITY OF AVENTURA, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended September 30, 2010 Net change in fund balances - total governmental funds $ 471,107 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is depreciated over their estimated useful lives and reported as depreciation expense. This is the amount by which capitalized capital outlays exceeded depreciation in the current period: Expenditures for capital assets $ 7,622,467 Less current year's depreciation (3,795,902) 3,826,565 In the statement of activities, the loss on the disposal of assets is reported, whereas in the governmental funds, the proceeds from the sale increase financial resources. The change in net assets differs from the change in fund balance by: Cost of the assets disposed (214,295) Related accumulated depreciation 205,740 (8,555) The issuance of long -term debt provides current financial resources to governmental funds: however, has no effect on net assets: Bond issue costs 63,440 Bond proceeds (10,385,000) (10,321,560) Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long -term liabilities in the statement of net assets. 11,710,000 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds: Net pension obligation (asset) 358,139 OPEB obligation (78,000) Interest 21,233 Deferred loss on refunding, net of amortization 261,560 Amortization of bond issuance costs (15,452) Compensated absences (348,335) 199,145 Receivables in governmental fund are susceptible to full accrual on the government -wide statements 237,445 Change in net assets of governmental activities $ 6,114,147 The accompanying notes to the financial statements are an integral part of these statements. 19 CITY OF AVENTURA, FLORIDA STATEMENT OF NET ASSETS PROPRIETARY FUND September 30, 2010 Stormwater Utility Fund ASSETS: Current assets: Cash, cash equivalents and investments $ 429,381 Due from other governments 250,000 Total current assets 679,381 Noncurrent assets: Capital assets not being depreciated 290,709 Capital assets, net of accumulated depreciation 7,325,651 Total noncurrent assets 7,616,360 Total assets 8,295,741 LIABILITIES: Current liabilities: Accounts payable 7,524 Total liabilities 7,524 NET ASSETS: Invested in capital assets 7,616,360 Unrestricted 671,857 Total net assets $ 8,288,217 The accompanying notes to the financial statements are an integral part of these statements. 20 CITY OF AVENTURA, FLORIDA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS PROPRIETARY FUND September 30, 2010 Stormwater Utility Fund OPERATING REVENUES: Charges for services $ 842,867 OPERATING EXPENSES: Cost of sales and services 571,253 Depreciation expense 271 ,998 Total operating expenses 843,251 Operating loss (384) NONOPERATING REVENUES: Interest income 3,320 Income before contributions 2,936 CAPITAL CONTRIBUTIONS - GRANTS 175,303 Change in net assets 178,239 NET ASSETS, beginning 8,109,978 NET ASSETS, ending $ 8,288,217 The accompanying notes to the financial statements are an integral part of these statements. 21 CITY OF AVENTURA, FLORIDA STATEMENT OF CASH FLOWS - PROPRIETARY FUND For the Year Ended September 30, 2010 CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers, users and other $ 845,632 Cash paid to suppliers (580,012) Net cash provided by operating activities 265,620 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Purchase of capital assets (307,932) Net cash used in capital and related financing activities (307,932) CASH FLOWS PROVIDED BY INVESTING ACTIVITIES: Interest received 3,320 Net cash provided by investing activities 3,320 Net decrease in cash, cash equivalents and investments (38,992) CASH, CASH EQUIVALENTS AND INVESTMENTS, beginning 468,373 CASH, CASH EQUIVALENTS AND INVESTMENTS, ending $ 429,381 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating loss (384) Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense 271,998 Changes in assets and liabilities: Increase in due from other governments 2,765 Decrease in accounts payable (8,759) Total adjustments 266,004 Net cash provided by operating activities $ 265,620 The accompanying notes to the financial statements are an integral part of these statements. 22 CITY OF AVENTURA, FLORIDA STATEMENT OF FIDUCIARY NET ASSETS POLICE OFFICERS' RETIREMENT PLAN FUND September 30, 2010 ASSETS: Investments, at fair value: Common stocks $ 8,342,431 U.S. Government securities 2,114,693 Corporate bonds 1,965,382 Money market funds 819,210 Receivables: Employer contributions 49,198 Employee contributions 18,747 Accrued interest 37,630 Total assets 13,347,291 LIABILITIES: - Total liabilities - Net assets held in trust for pension benefits $ 13,347,291 The accompanying notes to the financial statements are an integral part of these statements. 23 CITY OF AVENTURA, FLORIDA STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS POLICE OFFICERS' RETIREMENT PLAN FUND September 30, 2010 ADDITIONS: Contributions: Employer $ 1,320,667 Employees 503,236 State of Florida, premium tax 284,381 Total contributions 2,108,284 Investment earnings: Net appreciation in fair value of investments 872,002 Interest and dividend income 267,759 Total investment income 1,139,761 Less investment expense 111,040 Net investment income 1,028,721 Total additions 3,137,005 DEDUCTIONS: Administrative expenses 46,223 Benefits paid 101,996 Total deductions 148,219 Change in net assets 2,988,786 NET ASSETS HELD IN TRUST FOR PENSION BENEFITS, beginning 10,358,505 NET ASSETS HELD IN TRUST FOR PENSION BENEFITS, ending $ 13,347,291 The accompanying notes to the financial statements are an integral part of these statements. 24 CITY OF AVENTURA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS September 30, 2010 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Aventura, Florida (the "City ") was incorporated on November 7, 1995, under the provisions of Chapter 63 -1675 Laws of Florida. The City operates under a commission - manager form of government and provides the following full range of municipal services as authorized by its charter: public safety, highways and streets, building, licensing and code compliance, culture and recreation, public works and stormwater management, public records and general administrative services. The Comprehensive Annual Financial Report (the "CAFR ") of the City includes all funds. The financial statements of the City have been prepared to conform with accounting principles generally accepted in the United States of America ( "GAAP ") as applicable to state and local governments. The Governmental Accounting Standards Board ( "GASB ") is the accepted standard - setting body for establishing governmental accounting and financial reporting principles. Significant accounting and reporting policies and practices used by the City are described below: A. Financial Reporting Entity Accounting principles generally accepted in the United States of America require that the reporting entity include: (1) the primary government, (2) organizations for which the primary government is financially accountable and (3) other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. The criteria provided in Section 2100 of the Codification of Government Accounting and Financial Reporting Standards have been considered and there are no agencies or entities which should be presented with the City. B. Government Wide and. Fund Financial Statements The basic financial statements include both government -wide (based on the City as a whole) and fund financial statements. The government -wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all activities of the City. For the most part, the effect of interfund services provided and used has been eliminated 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 services. The government -wide statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those expenses 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 operation 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. The net cost (by function) is normally covered by general revenue (i.e., property taxes, sales taxes, franchise taxes, unrestricted intergovernmental revenues, interest income, etc.). 25 CITY OF AVENTURA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS September 30, 2010 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Separate fund financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government -wide financial statements. The focus of fund financial statements is on major funds. Major individual governmental funds and the major individual enterprise fund are reported as separate columns in the fund financial statements. GASB Statement No. 34 sets forth minimum criteria (percentage of assets, liabilities, revenues or expenditures /expenses of either fund category for the governmental and enterprise combined or funds that management deems of public importance) for the determination of major funds. The nonmajor funds are combined and presented in a single column . in the fund financial statements. The government - wide -focus is more on the - sustainability of the City as an entity and the - change in aggregate financial position resulting from the activities of the fiscal period. The focus of the fund financial statements is on the major individual funds of the governmental and business - type categories, (by category). Each presentation provides valuable information that can be analyzed and compared to enhance the usefulness of the information. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary and fiduciary fund financial statements. Revenues are recorded when earned and, expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year when an enforceable lien exists and when levied for. Grants and similar items are recognized as revenues 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 government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, pension, other postemployment benefits and claims and judgments, are recorded only when due. Property taxes when levied for, franchise fees, utility taxes, charges for services, intergovernmental revenues when eligibility requirements are met and interest associated with the current fiscal period are all considered to be measurable and have been recognized as revenues of the current fiscal period, if available. All other revenue items such as fines and forfeitures and licenses and permits are considered to be measurable and available when cash is received by the City. 26 CITY OF AVENTURA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS September 30, 2010 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Proprietary fund -type operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. Proprietary funds distinguish operating revenues and expenses from nonoperating 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 proprietary fund are charges to customers for sales and services. Operating expenses for proprietary funds include the costs of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses that do not meet this definition are reported as nonoperating revenues or expenses. The City reports the following major governmental funds: General Fund - This fund is the principal operating fund of the City. All general tax revenues and other receipts that are not allocated by law or contractual agreement to another fund are accounted for in this fund. Charter School Fund - This fund is used to account for revenues and expenditures from the operations of the Aventura City of Excellence School, a special revenue fund of the City. Arts & Cultural Center Construction Fund - This fund is used to account for revenues and expenditures used to fund the construction and equipment for the Arts and Cultural Center. Debt Service Fund Series 2000 - is used to account for the payment of principal, interest and other expenditures associated with the Series 2000 Revenue Bonds. The City reports the following major proprietary fund: Stormwater Utility Fund - This fund accounts for the operation of the City's stormwater system. Additionally, the government reports the following fiduciary fund type: Police Officers' Retirement Plan Fund - This fund accounts for the activities of the Police Officers' Retirement Plan that accumulates resources for pension benefits to qualifying police officers. The private- sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government -wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the GASB. Governments also have the option of following subsequent private - sector guidance for their business -type and enterprise funds, subject to the same limitation. The government has elected not to follow subsequent private- sector guidance. As a general rule, the effect of interfund activity has been eliminated from the government - wide financial statements. Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services or privileges provided and fines and forfeitures, 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. 77 CITY OF AVENTURA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS September 30, 2010 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, and then unrestricted resources as they are needed. 1. Cash, cash equivalents and investments - Cash and cash equivalents are defined as demand deposits, money market accounts and other short -term investments with original maturities of three months or less from the date of acquisition. The City maintains a pooled cash account for all funds. This enables the City to invest large amounts of idle cash for short periods of time and to optimize earnings potential. Cash and cash equivalents represents the amount owned by each City fund. Resources of all funds, with the exception of the pension fund, are also combined into investment pools for the purpose of maximizing investment yields. Interest earned on pooled cash and investments is allocated monthly based on cash balances of the respective funds. The City's investments are reported at their fair value based on quoted market prices as reported by recognized security exchanges except for the Guaranteed Investment Contract which is recorded at cost. The pension plan's investments in common stocks, corporate bonds and U.S. government securities are reported at fair value based on quoted market price. Investments in money market funds are valued at cost. 2. Receivables and payables - Transactions between funds that are representative of an outstanding Lending /borrowing arrangement at the end of the year are referred to as either "interfund receivables /payables. " Any residual outstanding balances between the governmental activities and business -type activities at year -end are reported in the government -wide financial statements as internal balances. 3. Prepaid expenses /expenditures - Certain payments to vendors reflect costs applicable to a future accounting period and are recorded as prepaid items in both government -wide and fund financial statements. 4. Inventories - Inventories are valued at the lower of cost (first -in, first -out) or market. These amounts are reserved in governmental fund financial statements. Inventory is accounted for using the consumption method whereby inventories are recorded as expenditures when they are used. 5. Capital assets - Capital assets purchased or acquired with an original cost of $ 5,000 or more are reported at historical cost or estimated historical cost. Contributed assets are reported at fair value as of the date received. Additions, improvements and other capital outlays that significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred. Depreciation on all assets is provided on the straight -line basis over the following estimated useful lives: Buildings 25 Improvements other than buildings 20 - 30 Infrastructure 20 - 40 Furniture, machinery and equipment 3 -20 28 CITY OF AVENTURA, FLORIDA. NOTES TO BASIC FINANCIAL STATEMENTS September 30, 2010 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Within governmental funds (government -wide level), amounts incurred for the acquisition of capital assets are reported as fund expenditures. Depreciation expense is not reported within the governmental fund financial statements. 6. Unearned /deferred revenues - Unearned revenues at the government -wide level, governmental funds and proprietary funds are reported when the City receives resources before it has earned the revenues. Furthermore, governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. 7. Compensated absences payable - The City's sick leave policy permits employees to accumulate earned but unused sick pay benefits. Upon termination, sick pay is paid out, between 10-50% based on length of service. The City's vacation policy is that earned vacation is cumulative although limited to certain maximums based on length of service. Accumulated compensated absences are recorded in the government -wide and proprietary fund financial statements when earned. Expenditures for accumulated compensated absences have been recorded in the governmental funds only if they have matured, (e.g., resulting from employee resignations and retirements). Payments are generally paid out of the General Fund. 8. Long -term obligations - In the government -wide financial statements and proprietary fund types in the fund financial statements, long -term debt and other long -term obligations are reported as liabilities in the applicable governmental activities, business -type activities or proprietary fund type statement of net assets. Bond premiums, discounts and issuance costs are deferred and amortized over the life of the bonds using the straight line method, which approximates the effective interest method. Bonds payable are reported net of the applicable premiums and discounts. For bond refundings resulting in the defeasance of debt reported in the government -wide financial statements and proprietary fund types in the fund financial statements, the difference between the reacquisition price and the net carrying amount of the old debt is deferred and amortized as a component of interest expense. The accounting gain or loss is amortized over the remaining life of the old debt or the life of the new debt, whichever is shorter, and is presented as an addition to or reduction of the face amount of the new debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issue costs in the year of issuance. Bond proceeds at face value and premiums are reported as other financing source. Bond discounts are reported as other financing use. Issuance costs, even if withheld from the actual net proceeds received, and bond principal payments are reported as debt service expenditures. 9. Equity classifications Government -Wide and Proprietary Fund Statements: Equity is classified as net assets and displayed in three components: a. Invested in capital assets, net of related debt - consists of capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, notes or other borrowings that are attributable to the acquisition, construction or improvements of those assets. 29 CITY OF AVENTURA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS September 30, 2010 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) b. Restricted net assets - consists of net assets with constraints placed on the use either by: 1) external groups such as creditors, grantors, contributors or laws or regulations of other governments, or 2) law through constitutional provisions or enabling legislation. c. Unrestricted net assets - all other net assets that do not meet the definition of "restricted" or "invested in capital assets, net of related debt." Fund Statements: In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. 10. Encumbrances - Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of funds are recorded in order to reserve that portion of the applicable appropriation, is employed in the governmental funds. Encumbrances are recorded at the time a purchase order or other commitment is entered into. Encumbrances outstanding at year -end represent the estimated amount of expenditures which would result if unperformed purchase orders and other commitments at year -end are completed. Appropriations lapse at year -end; however, the City generally intends to honor purchase orders and other commitments in process. As a result, encumbrances outstanding at year -end are reported as reservations of fund balance since they do not constitute expenditures or liabilities of the current period. 11. Use of estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. NOTE 2 - PROPERTY TAXES Property taxes are assessed as of January 1 each year and are first billed (levied) and due the following November 1. 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 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 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 year ended September 30, 2010 was 1.7261 mills. The City's tax levy is established by the City Commission prior to October 1 of each year, and the County Property Appraiser incorporates the millage into the total tax levy, which includes Miami -Dade County, Miami -Dade County School Board and certain other 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 Florida Department of Revenue for review to determine if the assessment rolls meet all of the appropriate requirements of State Statutes. 30 CITY OF AVENTURA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS September 30, 2010 NOTE 2 - PROPERTY TAXES (continued) All real and tangible personal property taxes are due and 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 each property owner on the assessment roll a notice of the taxes due and collects the taxes for the City. Taxes may be paid upon receipt of the notice from Miami -Dade County, with discounts at the rate of 4% if paid in the month of November, 3% if paid in the month of December, 2% if paid in the month of January and 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 1 of the year following the year in which the 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 as of September 30, 2010. NOTE 3 - DEPOSITS AND INVESTMENTS Deposits: The City's custodial credit risk policy is in accordance with Florida Statutes. Florida Statutes authorize the deposit of City funds in demand deposits or time deposits of financial institutions approved by the State Treasurer. These are defined as public deposits. All City public deposits are held in qualified public depositories pursuant to Chapter 280, Florida Statutes, "Florida Security for Public Deposits Act." Under the act, all qualified public depositories are required to pledge eligible collateral having a market value equal to or greater than the average daily or monthly balance of all public deposits times the depository's collateral pledging level. The collateral pledging level may range from 50 % to 125% depending upon the depository's financial condition and the length of time that the depository has been established. All collateral must be deposited with the State Treasurer. Any losses to public depositors resulting from insolvency are covered by applicable deposit insurance, sale of securities pledged as collateral and, if necessary, assessment against other qualified public depositories of the same type as the depository in default. The City's bank balances were insured either by the federal depository insurance corporation or collateralized in the bank's participation in the Florida Security for Public Deposits Act. The Florida SBA Pool is not a registrant with the Securities and Exchange Commission ( "SEC "); however, its board has adopted operating procedures consistent with the requirements for a 2a -7 fund. The SBA investments are allocated among two funds, Fund A and Fund B (hereinafter referred to as "Florida PRIME" and "LGIP -B "). For the Florida PRIME, a 2a7 -like pool, the value of the City's position is the same as the value of the pool shares and is recorded at amortized cost. At September 30, 2010, the City's investment in the Florida PRIME was that of $ 17,088,392. In accordance with these requirements, the method used to determine the participants' shares sold and redeemed is the amortized cost method. The amortized cost method is the same method used to report investments. Amortized cost includes accrued income and is a method of calculating an investment's value by adjusting its acquisition cost for the amortization of discount or premium over the period from purchase to maturity. Thus, the City's account balance in the SBA is its amortized cost. The LGIP -B pool is accounted for as a fluctuating net asset value "NAV." The balance of the City's investment in LGIP -B at year end amounted to $ 133,739, with a net asset value factor of 0.707058094. The SBA is governed by Chapter 19 -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 General of the State of Florida performs the operational audit of the activities and investment of the SBA. The SBA accounts are not subject to custodial credit risk as these investments are not evidenced by securities that exist in physical or bank entry form. 31 CITY OF AVENTURA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS September 30, 2010 NOTE 3 - DEPOSITS AND INVESTMENTS (continued) Investments: On June 2. 2009 the City adopted Chapter 6.6 of the Administrative Policy and Directives and Procedures Manual, entitled "Investments Objective and Parameters," as the City's Investment Policy for the management of Public Funds ( "the policy "). The policy was created in accordance with Section 218.415, Florida Statutes. The policy applies to all investments held and controlled by the City, with the exception of the Police Officers' Pension Plan and its debt issuance where there are other existing policies or indentures in effect for the investment of related funds. The City's policy for investments other than pension plan and debt issuance is summarized below. The Finance Director has responsibility for the type of investments the City makes. The investment policy establishes permitted investments, asset allocation, issuer limits, credit rating requirements and maturity limits to protect the City's assets. All investment securities are held by a Trust custodian, and are managed by financial advisors. The City's policy allows them to invest, but is not limited to the following: (1) obligations of the United States and its agencies; (2) highly rated obligations of any state of the United States or of any political subdivision; authority or agency thereof; (3) shares or other interests in custodial arrangements or pools maintaining constant net asset values and in highly rated no -load open -end money market mutual funds (with constant or fluctuating net asset values) whose portfolios are limited to obligations of the United States and its agencies, and repurchase agreements fully collateralized by such obligations; and (4) the Florida Local Government Surplus Funds Trust Fund "SBA". The City policy for pension investments is under the oversight of the Plan's Board of Trustees (the "Board "). The Board contracts with an investment advisory firm and approves any new investment vehicles presented by the consultant. The Board follows all applicable state statutes. State law limits investments in corporate bonds and commercial paper to the top four (4) ratings issued by nationally recognized statistical rating organizations. The City has a Guaranteed Investment Contract ( "GIC ") that is not subject to interest rate risk classification because it is a direct contractual investment and is not a security. The GIC also is not rated for credit risk classification purposes. The GIC provides for a guaranteed return on investments over a specific period of time at a rate of 5.04% per annum. The value of the GIC as of September 30, 2010 is $ 517,131 and the value of the GIC is expected to be sufficient to meet the reserve fund requirement for the Series 2000A Revenue Note of a minimum of $ 500,000. The GIC is recorded at the contract amount which is $ 500,657. Interest rate risk - The City does not have a formal investment policy for its pension funds that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City's policy is to limit its exposure to fair value losses arising from changes in interest rates by structuring the investment 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 investing operating funds primarily in shorter -term securities, money market mutual funds or similar investment pools. A segmented time distribution table at September 30, 2010 . is presented later in this report. 32 CITY OF AVENTURA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS September 30, 2010 NOTE 3 - DEPOSITS AND INVESTMENTS (continued) Concentrations - 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 percentage of portfolio assets that can be invested with a specific issuer. GASB Statement No. 40 requires disclosure when the percentage is 5% or more in any one issuer. The City's investments in the Federal Horne Loan Banks and Federal National Mortgage Association (Fannie Mae) are 5.89% and 5.75 %, respectively. The pension fund Limits investments that may be invested in any one issuer to no more than 5% of plan net assets, other than those issued by the U.S. Government or its Agencies. More than 5% of the Fund's plan net assets are invested in debt securities issued by the U. S. Treasury. The U. S. Treasury investments represented 12.71% of Plan Net Assets. Given the restriction to the highest rating, these concentrations are not viewed to be an additional risk to the City. Custodial credit risk - For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty (e.g., broker- dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The City's investment policy requires securities, with the exception of certificates of deposit, to be registered in the City's name and held with a third party custodian. As of September 30, 2010, the City's cash, cash equivalents and investments consisted of the following: Cash and cash equivalents and investments: State Board of Administration - SBA, Florida PRIME $ 17,088,392 U.S. Government obligations 12,105,854 Deposits with financial institutions 8,743,178 Corporate bonds 1,703,757 Money market funds 526,802 Guaranteed investment contract 500,657 U.S. treasury bills 359,855 Mortgage- backed securities 283,505 Collateralized mortgage obligations 180,573 Municipal obligations 154,368 State Board of Administration - SBA, Fund B 133,739 Petty cash 2,155 41,782,835 Fiduciary fund investments: Common stocks 8,342,431 U.S. Government securities 2,114,693 Corporate bonds 1,965,382 Money market funds 819,210 13,241,716 $ 55,024,551 33 CITY OF AVENTURA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS September 30, 2010 NOTE 3 - DEPOSITS AND INVESTMENTS (continued) Cash, cash equivalents and investments are classified in the accompanying financial statements as follows: Statement of Net Assets: Cash, cash equivalents and investments $ 41,282,178 Restricted cash, cash equivalents and investments 500,657 41,782,835 Statement of Fiduciary Net Assets: Common stocks 8,342,431 U.S. Government securities 2,114,693 Corporate bonds 1,965,382 Money market funds 819,210 13,241,716 $ 55,024,551 Interest rate risk: This 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 policy is that unless matched with specific cash flow, the City will not directly invest in securities maturing more than seven (7) years from the date of purchase. Because of inherent difficulties in accurately forecasting cash flow requirements, a portion of the portfolio should be continuously invested in readily available funds to ensure that proper liquidity is maintained to meet ongoing obligations. Information about the exposure of the City's debt -type investments to this risk using the segmented time distribution . model is as follows: Investment Maturities (in Years) Greater Summary of Investments Fair Less Than 1 -5 6 -10 Than and Interest Rate Risk Value 1 Year Years Years 10 Years City Investments: State Board of Administration - SBA, Florida PRIME $ 17,088,392 $ 17.088,392 $ - $ - $ - U.S. Government obligations 12,105,854 3.768,727 8,337,127 - - Corporate bonds 1,703.757 483.258 1.220,499 - - Money market funds 526,802 526,802 - - - U.S. treasury bills 359,855 359,855 - - - Mortgage- backed securities 283,505 127,905 155,600 - - Collateralized mortgage obligations 180,573 - 180,573 - - Municipal obligations 154,368 - 154,368 - - State Board of Administration - SBA, Fund B 133.739 - - 133,739 - Subtotal - City Investments 32,536,845 22,354,939 10,048,167 1.33,739 - Fiduciary Fund: U.S. Government securities 2,114,693 - 1,661,744 452,949 - Corporate bonds 1.965,382 138,245 1,315,513 511,624 - Money market funds 819,210 819,210 - - - Subtotal - Fiduciary Fund 4,899,285 957,455 2.977,257 964,573 - Total investments $ 37,436,130 $ 23,312,394 $ 13,025,424 $ 1,098,312 $ - 34 CITY OF AVENTURA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS September 30, 2010 NOTE 3 - DEPOSITS AND INVESTMENTS (continued) Credit Risk: Generally, credit risk is the risk that an issuer of a debt -type investment will not fulfill its obligation to the holder of the investment. This is measured by assignment of a rating by a nationally- recognized rating organization. The pension fund limits its credit risk by limiting its fixed income investments to securities with the top four (4) ratings issued by nationally recognized statistical rating organizations. The City's investment policy provides strict guidelines and limits investments to highly rated securities with minimum ratings of AAA /Aaa and AAAm /AAAm -G (money market mutual funds). The Finance Director shall determine the appropriate action for any investment held that is downgraded below the minimum rating by one or more rating agencies. U.S. government securities or obligations explicitly guaranteed by the U.S. government are not considered to have credit risk exposure. Investments in the LGIP -B, mortgage -back securities, collateralized mortgage obligations, a corporate bond, money market funds, and certain U.S. government obligations are not rated. The City's and fiduciary fund portfolio is rated by Moody's Investors Services as follows: Fair Rating Value City Investments: Aaa $ 13,090,223 Aa2 714,030 Aa3 100,169 AAAm 17,088,392 Not rated 1,544,031 32,536,845 Fiduciary Fund: A 1 405,745 A2 668,118 A3 1 16,780 AA2 376,233 AA3 398,506 Not rated 2,933,903 4,899,285 $ 37,436,130 35 CITY OF AVENTURA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS September 30, 2010 NOTE 4 - RECEIVABLES Receivables as of September 30, 2010 . consist of the following: Charter Nonmajor General School Govermental Fund Fund Funds Total Governmental activities: Utility service taxes $ 370,482 $ - $ - $ 370,482 Police services 82,913 - 49,114 132,027 Vendors 16,935 5,400 - 22,335 Franchise fees 30,803 - 30,803 Total governmental activities $ 501,133 $ 5,400 $ 49.114 $ 555,647 NOTE 5 - INTERFUND BALANCES AND TRANSFERS Interfund receivables and payables as of September 30, 2010 were as follows: Receivables Payables General Fund 137,826 $ - Street Maintenance Fund - Non Major Fund - 137,826 $ 137,826 $ 137,826 These balances resulted from the time lag between the dates interfund goods and services are provided or reimbursable expenditures occur. Interfund transfers during the year ended September 30, 2010 were as follows: Transfers Transfers In Out General Fund $ 125,000 $ 3,656,469 Charter School Fund 100,000 446,778 Capital Project Arts and Cultural Center Fund 954,385 - Debt Service Fund Series 2000 628,705 - Other nonmajor governmental funds 2,718,357 423,200 5 4,526,447 $ 4,526,447 36 CITY OF AVENTURA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS September 30, 2010 NOTE 5 - INTERFUND BALANCES AND TRANSFERS (continued) Transfers are used to: (1) move revenues from the fund that statute or budget requires to collect them, to the fund that statute or budget requires to expend them from or (2) use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. Transfers to the General Fund represent reimbursement of cost from the 911 Fund of $ 125,000. The transfer to the Charter School Fund consists of $ 100,000 from the General Fund which is being used to support future capital projects occurring in the Charter School Special Revenue Fund. Transfers to the Capital Project Arts and Cultural Center Fund are comprised of the following: transfer from the General Fund of $ 656,185 and $ 298,200 from the Park Development Fund. The remaining transfers represent transfers to meet debt service requirements in the Debt Service Funds. NOTE 6 - CAPITAL ASSETS Capital assets activity for the year ended September 30, 2010 was as follows: Balance Retirements Balance October 1, and September 30, 2009 Additions Transfers 2010 Governmental activities: Capital assets, not being depreciated: Land $ 17,102,344 $ - $ - $ 17,102,344 Construction in progress 3,496,714 511,880 (3,496,714) 511,880 Total capital assets, not being depreciated 20,599,058 511,880 (3,496,714) 17,614,224 Capital assets, being depreciated: Buildings 36,414,685 7,364,908 - 43,779,593 Improvements other than buildings 10,815,984 107,322 - 10,923,306 Infrastructure 34.518,404 1,116,358 35,634,762 Furniture. machinery and equipment 11,303,479 2,018,713 (214,295) 13.107,897 Total capital assets, being depreciated 93,052,552 10,607,301 (214,295) 103,445,558 37 CITY OF AVENTURA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS September 30, 2010 NOTE 6 - CAPITAL ASSETS (continued) Balance Retirements Balance October 1, and September 30, 2009 Additions Transfers 2010 Less accumulated depreciation for: Buildings 6,465,926 1,012,051 - 7,477.977 Improvements other than buildings 1,958.566 410,586 - 2,369,152 Infrastructure 9,983,254 1,345,643 - 11,328,897 Furniture, machinery and equipment 8,187,780 1,027,622 (205,740) 9,009,662 Total accumulated depreciation 26,595,526 3,795,902 (205,740) 30,185.688 Total capital assets, being depreciated, net 66,457,026 6,811,399 (8,555) 73,259,870 Governmental activities capital assets, net $ 87,056,084 $ 7,323,279 $ (3,505,269) $ 90,874,094 Business -type activities: Capital assets, not being depreciated: Construction in progress $ 322,092 $ 290,709 $ (322,092) $ 290,709 Capital assets, being depreciated: Infrastructure 8,921,301 339,315 - 9,260,616 Less accumulated depreciation 1,662,967 271,998 1,934,965 Total capital assets, being depreciated, net 7,258,334 67,317 - 7,325,651 Business -type activities capital assets, net $ 7,580,426 $ 358.026 $ (322,092) $ 7,616,360 Depreciation expense was charged to function /programs of the primary government as follows: Governmental activities: General government $ 65,366 Public safety 909,110 Community services 2,821,426 $ 3,795,902 Business -type activities: Stormwater utility $ 271,998 38 CITY OF AVENTURA, FLORIDA. NOTES TO BASIC FINANCIAL STATEMENTS September 30, 2010 NOTE 7 - LONG -TERM LIABILITIES OF GOVERNMENTAL ACTIVITIES Changes in Governmental Activities long -term liabilities during the year ended September 30, 2010 were as follows: Balance Balance October 1, September 30, Due Within 2009 Additions Retirements 2010 One Year Series 1999 Revenue Bonds payable $ 16.795.000 $ - $ 11,095,000 $ 5,700,000 5 190,000 Series 2000 Revenue Bonds payable 4,5.10,000 285.000 4.225.000 295,000 Series 2002 Revenue Bonds payable 10,835,000 - 330,000 10,505,000 340,000 Series 2010 Revenue Bonds payable 10,385,000 - 10,385,000 - Compensated absences payable 2,076,885 1,493,151 1,.144.816 2,425,220 606,305 Other post - employment benefits 96,000 78,000 - 174,000 - Deferred loss on early retirement of Revenue Bonds payable of Series 1999 - (261,560) - (261,560) $ 34,312,885 $ 11,694,591 $ 12,854,816 5 33,152,660 $ 1.431,305 Revenue bonds as of September 30, 2010 were comprised of the following: Series 1999 Revenue Bonds issued from the Florida Municipal Loan Council, Inc. Principal is due annually over 30 years in various amounts through April 2029. The bonds bear interest at various rates (3.20% - 5.125%) and are payable semi - annually on October 1 and April 1 of each year. The bonds are collateralized by available Non -Ad Valorem revenues. $ 5,700,000 Series 2000 Revenue Bonds, principal is due annually over 20 years in various amounts through October 2020. The bonds bear interest at 5.05% and are payable semi - annually on October 1 and April 1 of each year. The bonds are collateralized by available Non -Ad Valorem revenues. 4,225,000 Series 2002 Revenue Bonds issued from the Florida Intergovernmental Finance Commission. Principal is due annually over 30 years in various amounts through August 2032. The bonds bear interest at various rates (2.50% - 5.00%) and are payable semi - annually on February 1 and August 1 of each year. The bonds are collateralized by available Non -Ad Valorem revenues. 10,505,000 Series 2010 Revenue Bonds, principal is due amorally over 19 years in various amounts through April 2029. The bonds bear interest at 3.42% and are payable semi - annually on October 1 and April 1 of each year. The bonds are collateralized by available Non -Ad Valorem revenues. 10,385,000 $ 30,815,000 39 CITY OF AVENTURA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS September 30, 2010 NOTE 7 - LONG -TERM LIABILITIES OF GOVERNMENTAL ACTIVITIES (continued) Compensated absences attributable to governmental activities are generally liquidated by the General Fund. Series 1999 and Series 2010 Revenue Bonds The City previously issued $ 21,000,000 in Series 1999 Revenue Bonds to finance the acquisition of land, buildings and other improvements related to municipal parks and the City's administrative complex and police station. The bond indenture relating to this issue requires a reserve fund which the City purchased a surety bond to meet this requirement. The indenture also requires the maintenance of a minimum debt service coverage ratio of 1.50:1.00 and a maximum annual debt service requirement for all debt secured from non - advalorem revenues not to exceed 20 % of governmental fund revenues, as defined in the bond agreement. Defeasance of bonds - On September 23, 2010, the City issued $ 10,385,000 in Series 2010 Revenue Bonds with a rate of 3.42% to advance refund $ 10,580,000 (including a City contribution of $ 520,000) of outstanding Series 1999 Revenue Bonds. The gross proceeds of $ 10,905,000 were deposited in an irrevocable trust with an escrow agent to provide for the costs of issuance ($ 63,440) and debt service payments ($ 10,580,000 of principal and $ 261,560 of interest) on the call date of April 1, 2011. The reacquisition price exceeded the net carrying amount of the old debt by $ 261,560. The amount is being netted against the new debt and amortized over the life of the new debt issued. The City advance refunded the Series 1999 Revenue bonds to reduce its total debt service payments over the next nineteen years by approximately $ 2,081,000 and to obtain an economic gain (difference between the present values of the debt service payments on the old and new debt, net of City's contribution) of approximately $ 1,110,200. Series 2000 Revenue Bonds The City previously issued $ 6,555,000 in Series 2000 Revenue Bonds to finance the acquisition of land for parks and recreational purposes and for the construction of a community recreation center. The bond indenture relating to this issue requires that a reserve fund of $ 500,000 be established, the balance of which as of September 30, 2010 was sufficient to meet this requirement. The indenture also requires the maintenance of a minimum debt service coverage ratio of 2.50:1.00. Series 2002 Revenue Bonds The City previously entered into a bond indenture agreement with the Florida Intergovernmental Finance Commission through an interlocal governmental agreement. As a result, the City issued $ 12,610,000 in Series 2002 Revenue Bonds to finance the acquisition of land and construction of a charter school as well as the construction of the community recreation center. The bond indenture relating to this issue requires a reserve fund in the amount of $ 842,000. The City purchased a surety bond to meet this requirement. 40 CITY OF AVENTURA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS September 30, 2010 NOTE 7 - LONG -TERM LIABILITIES OF GOVERNMENTAL ACTIVITIES (continued) The annual debt service requirements to maturity for the revenue bonds are approximately as follows: Year Ending September 30, Principal Interest Total 2011 $ 825,000 $ 1,352,500 $ 2,177,500 2012 1 ,290,000 1,300,900 2,590,900 2013 1,340,000 1,247,800 2,587,800 2014 1,395,000 1,191,300 2.586,300 2015 1,460,000 1,131,100 2,591,100 2016 -2020 8,520,000 4,651,900 13,171,900 2021 -2025 7,075,000 2,845,700 9,920.700 2026 -2030 7,505,000 1,183,200 8,688,200 2031 -2032 1,405,000 106,300 1,511,300 $ 30,815,000 $ 15,010,700 $ 45.825,700 NOTE 8 - COMMITMENTS AND CONTINGENCIES Litigation: Various claims and lawsuits, which arise in the normal course of operations, are pending against the City. It is management's opinion, based on the advice of the City Attorney, that the outcome of these actions will not have a material adverse effect on the financial statements of the City. Management also believes that the litigation against the City will be covered by insurance. Government grants: Revenue recognized from grants may be subject to audit by the grantor agencies. In the opinion of City management, as a result of such audits, disallowances of grant revenues, if any, would not have a material adverse effect on the City's financial condition. Employment agreement: The City has an employment contract with its City Manager that provides for an annual salary, adjusted for cost -of- living increases and certain benefits. This agreement is effective for an indefinite tern subject to termination of the City Manager by the City Commission in accordance with Article III, Section 3.08 of the City Charter. The City Manager must provide two (2) months advance written notice to resign voluntarily. 41 CITY OF AVENTURA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS September 30, 2010 NOTE 8 - COMMITMENTS AND CONTINGENCIES (continued) Charter school agreements: The City has a contract with the School Board of Miami -Dade County, Florida that provides for Aventura City of Excellence School to provide the residents of the City of Aventura an education choice: for up to 972 elementary and middle school students. The contract ends on June 30, 2018 but provides for a renewal of up to 15 years by mutual agreement of both parties. The City has entered into an agreement with Charter School USA, Inc. ( "CSUSA ") to provide administrative and educational services for the City's charter school. The agreement terminates on June 30, 2013. Other agreements: The City has entered into nonexclusive agreement with an engineering consulting firm (the "Consultant ") to provide building inspections and plan review services. Pursuant to the agreements, the Consultant receives 70 % of the gross building permit fee revenues for the first $100,000 in fees in a month and 65% of the amount in excess of $100,000 per month. However, the Consultant receives 35 % of the permit fee for all projects owned, paid for and to be operated by the City. Pension funding: There have been significant negative economic developments surrounding the overall market - liquidity, credit availability and market collateral levels which have resulted in declines in the value of the investment securities held by the Police Officers' Retirement Plan. Consequently, the City's required contribution amount to the Plan, which is necessary to maintain the actuarial soundness and to provide the level of assets sufficient to meet participant benefits, could significantly increase in future periods. It is management's opinion that future contributions to the Plan will not have a material adverse effect on the City's financial position. NOTE 9 - RISK MANAGEMENT The City is exposed to various risks of loss related to torts, thefts of, damage to and destruction of assets, errors and omissions, employee health, workers' compensation and natural disasters for which the City carries commercial insurance. Settlement amounts have not exceeded insurance coverage for any of the past three (3) fiscal years. In addition, there were no reductions in insurance coverage from those in the prior year. NOTE 1.0 - OTHER POST- EMPLOYMENT BENEFITS The City had previously implemented the Governmental Accounting Standards Board Statement No. 45, Accounting and Reporting by Employers for Postemploymenzt Benefits Other Than Pension (OPEB), for certain postemployment health care benefits provided by the City. As of October 1, 2008, the latest actuarial valuation, health care and dental plan participants consisted of: Active Plan participants 185 Retiree Plan participants and spouses 3 188 42 CITY OF AVENTURA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS September 30, 2010 NOTE 10 - OTHER POST - EMPLOYMENT BENEFITS (continued) Plan Description: Pursuant to Section 112.0801, Florida Statutes, the City is required to permit participation in the health insurance program to retirees and their eligible dependents at a cost to the retiree that is no greater than the cost at which coverage is available for active employees. Other than certain department directors, retirees must pay a monthly premium as determined by the insurance carrier. Pursuant to Resolution 2006 -64; department directors who retire at age 55 or later with at least 10 years of service are not required to pay a premium for medical or dental coverage for themselves prior to age 65. Retirees pay 100% of the blended equivalent premium rates. The blended rates provide an implicit subsidy for retirees because, on an actuarial basis, their current and future claims are expected to result in higher costs to the plan on average than those of active employees. The plan described above is currently offered by the City under a "single employer plan" structure. The City provides all financial information and required disclosures of its other post - employment benefit plan in this document; therefore, a separate audited post - employment benefits plan report is not available. Funding Policy: The City is funding the post employment benefits on a pay -as- you -go basis. For the fiscal year ended September 30, 2010, the annual required contribution was $ 148,000. The City made an implied contribution of $ 63,000 towards this amount. Retirees contributed $ 17,217 towards the cost of these benefits, for the fiscal year ended September 30, 2010. At September 30, 2010 the City recorded a net OPEB obligation of $ 174,000 for governmental activities, in its government -wide statement of net assets. Annual OPEB Cost and Net OPEB Obligation: The annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liability over a period not to exceed 30 years. The following table shows the components of the City's annual OPEB cost for the year, the amount actually contributed, and the changes in the net OPEB obligation. Annual Required. Contribution (ARC) $ 148,000 Interest on net pension obligation 4,000 Adjustment to annual required contribution (10,000) 142,000 Employer contributions made (63,000) Interest on employer obligation (1.000) Increase in net OPEB obligation 78,000 Net OPEB obligation, beginning of year 96,000 Net OPEB obligation, end of year $ 174,000 *estimated, reflects both the explicit and implicit subsidy 43 CITY OF AVENTURA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS September 30, 2010 NOTE 10 - OTHER POST - EMPLOYMENT BENEFITS (continued) The City's annual OPEB cost, the percentage of annual OPEB costs contributed to the plan, and the net OPEB obligation as of September 30, 2010 was as follows: Percentage Annual of Annual Year Ending OPEB OPEB Cost Net OPEB September 30, Cost Contributed Obligation 2010 $ 142,000 44.37% $ 174,000 Funded Status and Funding Progress: The schedule of funding progress, presented as RSI following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets are increasing or decreasing over time relative to the actuarial accrued liability for benefits. An analysis of funding progress (the last plan year valuation date) is as follows: Actuarial. Unfunded Accrued Actuarial UAAL Actuarial Liability Accrued as % of Valuation Value of at Entry Liability Funded Covered Covered Date Assets Age (UAAL) Ratio Payroll Payroll 10/01/08 $ - $ 73.5,000 $ 735,000 0.0% $ 9,175,000 8.0% Methods and Assumptions: Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short -term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long -term perspective of the calculations. In the October 1, 2008 actuarial valuation, the projected unit credit cost method was used. The annual required contribution (ARC) reflects a 12 -year open period, level dollar payment amortization of the unfunded actuarial accrued liability (UAAL). The actuarial assumptions included a 4.0% investment rate of return. The following assumptions were made: Eligibility: For police officers, eligibility was assumed to occur at the earlier of any age with at least 25 years of service or at age 55 with at least six (6) years of service; for all other employees eligibility was assumed to occur at the earlier of any age with at least 30 years of service or at age 62 with at least six (6) years of service. Mortality: Sex- distinct mortality rates set forth in the RP -2000 mortality table for annuitants and non- annuitants. 44 CITY OF AVENTURA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS September 30, 2010 NOTE 10 - OTHER POST - EMPLOYMENT BENEFITS (continued) Disability: Sex - distinct disability rates set forth in the Wyatt 1985 Disability Study; class 4 rates were used for police officers and class 1 rates were used for all other employees. Permanent Withdrawal from Active Status: Sex - distinct withdrawal rates set forth in Scale 155 table. Investment Rate of Return: A discount rate of 4.00% per annum (includes inflation at 2.50% per annum). Healthcare Cost Trend Rate: The cost of covered medical services has been assumed to increase in accordance with the following rates, compounded annually: 2008/2009 10.00% 2009/2010 9.00% 2010/2011 8.00% 2011 /2012 7.00% 2012/2013 6.00% 2013/2014 and later 5.00% Implied Subsidy (Medical Insurance): The implied subsidy for a 62 -year old retiree is assumed to be $ 5,400 per year for the retiree and $ 5,400 per year for the retiree's spouse. Implied Subsidy (Dental Insurance): There is no implied subsidy for the dental insurance since we have assumed that the premium charged for the covered individuals does not increase with age. Age- Related Morbidity: The cost of the medical services has been assumed to increase with age at the rate of 3.50% per annum. Retiree Contribution: Other than eligible department directors, retirees electing post - employment healthcare coverage have been assumed to make monthly contributions equal to the premium charged to active employees. Eligible department directors have been assumed to make the required contribution for healthcare coverage for their spouses. Cost -of- Living Increase: Retiree contributions have been assumed to increase in accordance with the healthcare cost trend assumption. 45 CITY OF AVENTURA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS September 30, 2010 NOTE 10 - OTHER POST - EMPLOYMENT BENEFITS (continued) Future Participation Rates: Other than eligible department directors, 5% of eligible employees were assumed to elect coverage until age 65 upon retirement or disability; 100% of department directors who are eligible for the explicit subsidy from the City were assumed to elect coverage until age 65. Marriage and Dependant Assumption: 80% of males and 50% of females are assumed to elect coverage at retirement for themselves and their spouses, with husbands assumed to be three (3) years older than their wives; active employees were not assumed to have any dependent children upon retirement or disability. COBRA Assumption: Future healthcare coverage provided solely pursuant to COBRA was not included in the OPEB valuation; because the COBRA premium is determined periodically based on plan experience, it is assumed that the COBRA premium to be paid by the participant fully covers the cost of providing healthcare coverage during the relevant period. NOTE 11 - DEFINED CONTRIBUTION PENSION PLANS The City is a single- employer that contributes to four (4) defined contribution pension plans based on employee classification created in accordance with Internal Revenue Code Section 401(a). The plans currently cover all full -time employees of the City. Under these plans, the City contributes between 7% and an amount equal to the annual IRS maximum depending on employee classifications. City contributions for the City Manager, department directors and assistant department directors vest in the year they are contributed. City contributions to general employees vest beginning after one year of service through year five in 20% increments. Participants are not permitted to make contributions during the year. The City made plan contributions of approximately $ 817,000 during the year. Plan provisions and contribution requirements may be amended by the City Commission. In addition, the City provides to all full -time employees a deferred compensation plan under Section 457 of the Internal Revenue Code. Under this program, employees may voluntarily elect to defer a portion of their salary to future years; with no required contributions from the City. Both programs are administered by ICMA Retirement Corp. The City does not exercise any control or fiduciary responsibility over the Plans' assets. Therefore, the assets, liabilities and transactions are not included in the City's financial statements. NOTE 12 - DEFINED BENEFIT PENSION PLAN The City agreed to provide a defined benefit retirement plan effective October 1, 2003 through a collective bargaining contract between the City and the Miami -Dade County Police Benevolent Association City of Aventura Police Officers' Retirement Plan (the "Plan "). The Plan is a single - employer defined benefit retirement plan. The Plan was established by the City in accordance with a City ordinance and state statutes. The Plan covers, only sworn police officers and is funded by a combination of City contributions, employee contributions, rollover of 401(a) plan assets for certain employees and the proceeds of the state insurance premium tax on casualty insurance policies. The current funding levels of covered payroll are 17.78% for the City's contribution, 6.775% for the employee's contribution and 5.00% for the state premiums tax. The State is required to contribute pursuant to Chapter 185 of the Florida Statutes, a premium on certain casualty insurance contracts written on the City's property. The premium tax is collected by the State and remitted to the City. During the current fiscal year the City received $ 284,381 from the State. The Plan and employee contributions are mandatory for all sworn police officers. Contribution requirements of the Plan members and the participating employer are established and may be changed by an amendment to the City ordinance. 46 CITY OF AVENTURA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS September 30, 2010 NOTE 12 - DEFINED BENEFIT PENSION PLAN (continued) The City utilizes the entry age normal cost method. The asset valuation method is a market value less unrecognized capital appreciation, which is recognized at a rate of 20 % per year. Information as of the latest actuarial valuation. dated October 1, 2009, included no cost of living adjustments and a 3.00% annual inflation rate; an annual investment rate of return of 7.50 %; projected annual salary increases of 5.00 %; the amortization method is level dollar, closed; and a remaining amortization period of 24 years. On October 1, 2009 (the last plan year valuation date), Plan membership consisted of: Retirees and beneficiaries receiving benefits 4 Active Plan members 78 82 The financial statements of the Plan are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which the contributions are due. The City's contributions are recognized when due and a formal commitment to provide the contributions has been made. Benefits and refunds are recognized when due and payable in accordance with the terms of the Plan. The general administration, management and investment decisions of the Plan and the responsibility for carrying out its provisions is vested in the five (5) members Board of Trustees. Administrative costs of the Plan are financed through current or prior investment earnings. The City has issued stand -alone financial statements for the Plan, which may be obtained from the City's Finance Department. Benefits: Normal retirement may be received upon attainment of age 55 with ten (10) years of credited service or upon completion of 25 years of credited service regardless of age. For the first 40 years of service, the monthly benefit received will be 3.00% of final monthly compensation multiplied by the number of years of service, to a maximum of 80.00 %. Years credited beyond 40 will be taken into account at 2.00% of final compensation per year. Early retirement may be received upon the attainment of age 45 with ten (10) years of credited service. The benefit may be received either on a deferred basis or on an immediate basis. On an immediate basis, the benefit amount will be the normal retirement benefit reduced by 3.00 % per year for each year by which the retirement date precedes the normal retirement date. On a deferred basis, the benefit amount will be the same as the normal retirement benefit except that the final compensation and credited service will be based upon the early retirement date. Disability retirement: Members who become disabled due to service- incurred injuries, which arise out of performance of service with the City, will receive a monthly benefit amount equal to the member's accrued benefit but not less than 42.00% of the member's final monthly compensation as of the date of disability, offset by any other payments. such as worker's compensation. Members who become disabled due to non- service- incurred injuries, which do not arise out of performance with the City, and who have completed at least ten (10) years of service, will receive a monthly benefit amount equal to 3.00% of final monthly compensation for each year of credited service, but not less than 30.00 %. 47 CITY OF AVENTURA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS September 30, 2010 NOTE 12 - DEFINED BENEFIT PENSION PLAN (continued) Trend information: Trend information indicates the progress made in accumulating sufficient assets to pay benefits when due. An analysis of funding progress for the year ended September 30, 2010 is as follows: Actuarially Percentage Net Pension Year Ending Determined of APC Obligation/ September 30, Contribution Contributed (Asset) 2010 $ 1,245,754 129% $ (517,529) 2009 $ 886,124 130% $ (159,390) 2008 $ 1,006,054 102% $ 103,875 Funding progress: The schedule of funding progress, presented as RSI following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets are increasing or decreasing over time relative to the actuarial accrued liability for benefits. An analysis of funding progress for the year ended September 30, 2009 is as follows: Actuarial Unfunded Accrued Actuarial UAAL Actuarial Liability Accrued as % of Valuation Value of at Entry Liability Funded Covered Covered Date Assets Age (UAAL) Ratio Payroll Payroll 10/01/09 $ 10,375,587 $ 16,273,418 $ 5,897,831 63.76% $ 6,418,797 91.88% The annual pension cost and net pension obligation (asset) for the Plan for year ended September 30, 2010 is as follows: Annual Required Contribution (ARC) $ 1,245,754 Interest on net pension obligation (11,954) Adjustment to annual required contribution 13,109 Annual Pension Cost 1,246,909 Contributions made 1,605,048 Decrease in net pension obligation (358,139) Net pension obligation, beginning of year (159,390) Net pension obligation, end of year $ (517,529) 48 CITY OF AVENTURA, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS September 30, 2010 NOTE 13 - PRONOUNCEMENTS ISSUED BUT NOT YET EFFECTIVE The GASB has issued several statements not yet implemented by the City. The statements which might impact the City are as follows: GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, was issued February 2009. This statement establishes fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds and clarifies the existing fund type definitions. The provisions of this Statement will be effective for the City beginning with its year ending September 30, 2011. GASB Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements, was issued November 2010. The objective of this Statement is to improve financial reporting by addressing issues related to service concession arrangements (SCAs), which are a type of public- private or public - public partnership. As used in this Statement, an SCA is an arrangement between a transferor (a government) and an operator (governmental or nongovernmental entity) in which (1) the transferor conveys to an operator the right and related obligation to provide services through the use of infrastructure or another public asset (a "facility ") in exchange for significant consideration and (2) the operator collects and is compensated by fees from third parties. The provisions of this Statement will be effective for the City beginning with its year ending September 30, 2013. GASB Statement No. 61, The Financial Reporting Entity: Omnibus an Amendment of GASB Statements No. 14 and No. 34, was issued November 2010. The objective of this Statement is to improve financial reporting for a governmental financial reporting entity. This Statement modifies certain requirements for inclusion of component units in the financial reporting entity. This Statement also clarifies the reporting of equity interests in legally separate organizations. The provisions of this Statement will be effective for the City beginning with its year ending September 30, 2013. The City's management has not yet determined the effect these unadopted standards may have on the City's financial statements. NOTE 14 - SUBSEQUENT EVENT On January 25, 2011, the City issued $ 5,565,000 in Series 2011 Revenue Bonds with a rate of 3.64% to advance refund $ 5,700,000 (including a City contribution of $ 336,928) representing the remainder portion of the outstanding Series 1999 Revenue Bonds. The gross proceeds of $ 5,901,928 were deposited in an irrevocable trust with an escrow agent to provide for the costs of issuance ($ 60,994) and debt service payments ($ 5,700,000 of principal and $ 140,934 of interest) on the call date of April 1, 2011. The City advance refunded the remainder Series 1999 Revenue Bonds to reduce its total debt service payments over the next nineteen years by approximately $ 1,085,000 and to obtain an economic gain (difference between the present value of the debt service payments on the old and new debt, net of City's contribution) of approximately $ 530,000. 49 CITY OF AVENTURA, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended September 30, 2010 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues: Ad valorem taxes: Current $ 13,223,037 $ 13,223,037 $ 12,585,864 $ (637,173) Delinquent 25,000 25,000 667,984 642,984 Utility service taxes: Electric 3,500,000 3,500,000 3,885,934 385,934 Telecommunication 2,400,000 2,400,000 2,679,607 279,607 Water 650,000 650,000 843,039 193,039 Gas 35,000 35,000 39,517 4,517 Franchise fees: Electric 3,300,000 3,300,000 3,196,576 (103,424) Gas 50,000 50,000 42,675 (7,325) Sanitation 410,000 410,000 417,541 7,541 Towing 30,000 30,000 30,093 93 Total taxes 23,623,037 23,623,037 24,388,830 765,793 Intergovernmental revenues: Federal grants 1,014,788 1,014,788 151,228 (863,560) State and local grants 86,000 86.000 23,687 (62,313) State pension contribution - 284,000 284,381 381 Alcoholic beverage licenses 15,000 15,000 19,551 4,551. State revenue sharing 365,000 365,000 346,523 (18,477) Half cent sales tax 1,758,000 1,758,000 1,701,703 (56,297) County occupational licenses 42,000 42,000 42,610 610 Total intergovernmental revenues 3,280,788 3,564,788 2,569,683 (995,105) Licenses and permits: City business tax receipts 675,000 675,000 674,288 (712) Building permits 700,000 1,120,000 1,303,983 183,983 Certificates of occupancy 25,000 25,000 33,804 8,804 Engineering 5,000 5,000 13,235 8,235 Total licenses and permits 1,405,000 1,825,000 2,025,310 200,310 Charges for services: Certificate of use fees 5,200 5.200 4,375 (825) Lien search fees 25,000 25,000 75,362 50,362 Development review fees 25,000 25,000 77,726 52,726 Recreation /cultural events 630,000 630,000 860,757 230,757 Police services 956,000 956,000 889,578 (66,422) Total charges for services 1,641,200 1,641,200 1,907,798 266,598 50 CITY OF AVENTURA, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND (continued) For the Year Ended September 30, 2010 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Fines and forfeitures: County court fees 390,000 390,000 400,442 10,442 Code violation fines 407,000 882,000 2,489,304 1,607,304 Total fines and forfeitures 797,000 1,272,000 2,889,746 1,617,746 Other: Interest income 250,000 250,000 260,882 10,882 Miscellaneous 38,000 38,000 104,308 66,308 Total other 288,000 288,000 365,190 77,190 Total revenues 31,035,025 32,214,025 34,146,557 1,932,532 Expenditures: Current General government: City Commission: Personnel services 62,063 62,063 62,165 (102) Operating 56,880 56,880 50,220 6,660 City Manager: Personnel services 745,575 745,575 741,856 3,719 Operating 168,300 168,300 118,301 49,999 Capital outlay 4,000 4,000 1,896 2,104 Finance: Personnel services 730,188 730,188 722,318 7,870 Operating 111,300 111,300 101,199 10,101 Capital outlay 2,000 2,000 1,918 82 Information technology: Personnel services 676,637 676,637 664,571 12,066 Operating 202,635 202,635 164,280 38,355 Capital outlay 271,000 440,148 195,825 244,323 Legal: Operating 280,000 280,000 249,160 30,840 City Clerk: Personnel services 216,499 216,499 210,695 5,804 Operating 62,900 62,900 37,942 24,958 Capital outlay 3,000 3,000 872 2,128 Total general government - departmental 3,592,977 3,762,125 3,323,218 438,907 51 CITY OF AVENTURA, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND (continued) For the Year Ended September 30, 2010 Variance with. Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Nondepartmental: Operating 1,614,000 1,614,000 1,238,292 375,708 Capital outlay 16,130,016 15,886,566 12,436 15,874,130 Total nondepartmental 17,744,016 17,500,566 1,250,728 16,249,838 Total general government 21,336,993 21,262,691 4,573,946 16,688,745 Public safety: Police: Personnel services 13,097,836 13,416,836 13,299,302 117,534 Operating 1,242, 500 1,242,500 1,203, 874 38,626 Capital outlay 839,260 1,174,714 830,953 343,761 Community development: Personnel services 703,189 703,189 652,429 50,760 Operating 779,600 1,574,600 1,615,430 (40,830) Capital outlay 190,100 444,100 348,793 95,307 Total public safety 16,852,485 18,555,939 17,950,781 605,158 Community services: Personnel services 1,370,201 1,370,201 1,293,466 76,735 Operating 2,935,200 2,935,200 2,845,377 89,823 Capital outlay 1,418,188 2,339,920 1,477,643 862,277 Arts and cultural center: Operating 419,823 419,823 388,987 30,836 Total community services 6,143,412 7,065,144 6,005,473 1,059,671 Total expenditures 44,332,890 46,883,774 28,530,200 18,353,574 Excess (deficiency) of revenues over expenditures (13,297,865) (14,669,749) 5,616,357 20,286,106 Other financing sources (uses): Transfers in 125,000 125,000 125,000 - Transfers out (2,279,418) (3,675,285) (3,656,469) 18,816 Appropriated fund balance 15,452,283 18,220,034 - (18,220,034) Total other financing sources (uses) 13,297,865 14,669,749 (3,531,469) (18,201,218) Net change in fund balance $ - $ - $ 2,084,888 $ 2,084,888 See Notes to Required Supplementary Information. 52 CITY OF AVENTURA, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS POLICE OFFICERS' RETIREMENT PLAN FUND (UNAUDITED) (b) Actuarial Accrued UAAL Liability as a (a) (AAL)- Unfunded Percentage Actuarial Actuarial Frozen AAL Funded (c) of Covered Valuation Value Initial (UAAL) Ratio Covered Payroll Date of Assets Liability (b) -(a) (a) /(b) Payroll (b- a) /(c) POLICE OFFICERS' RETIREMENT PLAN FUND (UNAUDITED) 10/01/09 $ 10.375.587 $ 16,273,418 $ 5,897,831 63.76% $ 6,418,797 91.88% 1.0/0.1/07 $ 6,935,097 S 10,825.108 $ 3.890,011 64.06% $ 5,576,592 69.76% 10/01/04 $ 2,393,593 $ 5.118,997 $ 2.725,404 46.76% $ 4.085,348 66.71% OTHER POST - EMPLOYMENT BENEFITS (UNAUDITED) 10/01/10 $ - $ 813,000 $ 813,000 0.0% $ 12,810,000 6.35% 10/01/09 $ - $ 765,000 $ 765,000 0.0% $ 11,775,000 6.50% 10/01/08 $ - $ 735,000 $ 735,000 0.0% $ 9,175,000 8.01% See Notes to Required Supplementary Information. 53 CITY OF AVENTURA, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS FROM THE EMPLOYER AND THE STATE OF FLORIDA POLICE OFFICERS' RETIREMENT PLAN FUND (UNAUDITED) City State of Annual Florida Fiscal Required City Insurance Percentage Year Contributions Contribution Premium Tax Contributed 2010 $ 1,530,095 $ 1,320,667 $ 284,341 104.90% 2009 $ 1,151,438 $ 1,149,156 $ 265,314 122.84% 2008 $ 1,169,142 $ 1,024,908 $ 163,088 101.61% 2007 $ 1,154,250 $ 1.000,802 $ 160,063 100.57% See Notes to Required Supplementary Information. 54 CITY OF AVENTURA, FLORIDA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION SEPTEMBER 30, 2010 NOTE 1 - BUDGETS AND BUDGETARY ACCOUNTING An annual appropriated budget is adopted for all governmental funds with the exception of the Charter School Fund, Federal Forfeiture Fund and Law Enforcement Trust Fund (Special Revenue Funds). 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. Formal budgetary integration is employed as a management control device during the year for the governmental funds described above. e. The City Commission, by ordinance, may make supplemental appropriations for the year up to the amount of revenues in excess of those estimated. The City Commission made several supplementary budgetary appropriations throughout the year including approximately $ 3,947,000 in the General Fund. f. Budgets for the governmental funds are adopted on a basis consistent with generally accepted accounting principles ( "GAAP "). g. 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 or fund must be approved by the City Commission. The classification detail at which expenditures may not legally exceed appropriations is at the department level. h. Unencumbered appropriations lapse at fiscal year -end. Unencumbered amounts are reappropriated in the following year's budget for capital accounts only. i. Expenditures did not exceed appropriations in any of the governmental funds. NOTE 2 - ACTUARIAL ASSUMPTIONS Police Officers' Retirement Plan Fund - Information as of the latest actuarial valuation date of October 1, 2009 (revised March 12, 2010) included no cost of living adjustments and a 3.00% annual inflation rate; an annual investment rate of return of 7.50 %; projected annual salary increase of 5.00 %; the amortization method is level dollar, closed; and an amortization period of 30 years. Other Post - Employment Benefits - Information as of the latest actuarial valuation date of October 1, 2008 is presented, including projected performance and results at October 1, 2009 and 2010 which is based on estimates prepared by the City's consulting actuary. 55 NON -MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Police Education Fund - This fund is used to account for revenues and expenditures associated with the two dollars ($2) the City receives from each paid traffic citation, by State Statute, must be used to further the education of the City's police officers. Street Maintenance Fund - This fund is to account for revenues and expenditures, which by State Statute are designated for street maintenance and construction costs. Police Capital Outlay Impact Fee Fund - This fund is used to account for impact fees derived from new developments and restricted by ordinance for police capital improvements. This fund provides a funding source to assist the City in providing police services required by the growth in the City. Park Development Fund - This fund is used to account for revenues and expenditures specifically earmarked for capital improvements to the City's park system, This fund accounts for impact fees derived from new developments and restricted by ordinance for park capital improvement projects. 911 Fund - This fund is used to account for revenues and expenditures specifically earmarked for the City's emergency 911 system in accordance with Florida Statutes 365.172. The funds may be used to provide emergency dispatch systems, training, communication, maintenance and repairs and related capital outlay purchases. The fund offsets a portion of the emergency 911 operations. Federal Forfeiture Fund - This fund is used to account for proceeds obtained from the sale of confiscated and unclaimed property turned over to the City through court judgments. Proceeds are to be used solely for crime fighting purposes. Law Enforcement Trust Fund - This fund is used to account for resources resulting from police department confiscations and their expenditure for law enforcement purposes. DEBT SERVICE FUNDS Debt service funds are used to account for the accumulation of resources for and the payment of principal and interest on all general long -term debt. Debt Service Fund Series 1999 - This fund is used to accumulate monies for the payment of the 1999 . and 2010 Revenue Bonds. Non -ad valorem tax revenues in the governmental funds are pledged for the payment of principal and interest. Debt Service Fund Series 2002 - Charter School Land Acquisition - This fund is used to accumulate monies for the payment of the 2002 Revenue Bonds. Non -ad valorem tax revenues in the governmental funds are pledged for the payment of principal and interest. Debt Service Fund Series 2002 - Charter School Building Construction - This fund is used to accumulate monies for the payment of the 2002 Revenue Bonds. Non -ad valorem tax revenues in the governmental funds are pledged for the payment of principal and interest. CITY OF AVENTURA, FLORIDA COMBINING BALANCE SHEET OTHER NONMAJOR GOVERNMENTAL FUNDS September 30, 2010 Special Revenue Funds Police Capital Law Police Street Outlay Park Federal Enforcement Education Maintenance Impact Development 911 Forfeiture Trust Fund Fund Fee Fund Fund Fund Fund Fund ASSETS: Cash, cash equivalents $ 10319 $ 14,644 $ 16,557 $ 2,246 $ 55.328 $ 654,331 $ 176,011 and investments Restricted cash, cash equivalents and investments - - - - - - - Accounts receivable. net - - - - 49.114 - - Due from other governments 591 239,013 - - - - - Total assets $ 11,310 $ 253,657 $ 16,557 $ 2,246 $ 104.442 $ 654,331 $ 176,011 LIABILITIES AND FUND BALANCES: Liabilities: Accounts payable $ - $ 47,863 $ - $ - $ 323 $ 13,128 $ 6,820 Deferred revenue - 65,000 - - 49,115 - - Due to other funds - 137.826 - - - - - Total liabilities - 250,689 - - 49.438 13,128 6.820 FUND BALANCES: Unreserved: Undesignated, reported in: Special revenue funds .11,310 2,968 16,557 2,246 55.004 641,203 .169.191 Debt service funds - - - - - - _ Total fund balances 11,310 2,968 16,557 2,246 55,004 641,203 169,191 Total liabilities and fund balances $ 11.310 $ 253,657 $ 16,557 $ 2,246 $ 104,442 $ 654,331 $ 176,011 56 Debt Service Funds Debt Debt Service Fund Service Fund Series 2002 Series 2002 Debt Charter Charter Total Service School School Nonmajor Fund Land Building Governmental Series 1999 Acquisition Construction Funds $ 15,526 $ 295 $ 117,478 $ 1,063,135 - 63 61 124 - - - 49.114 - - - 239.604 $ 15,526 $ 358 $ 117,539 $ 1,351.977 $ - $ 349 $ 347 $ 68,830 - - - 114,115 - - 137,826 - 349 347 320.771 - - - 898.479 15,526 9 117,192 132,727 15,526 9 117.192 1,031,206 $ 15,526 $ 358 $ 117.539 $ 1,351,977 57 CITY OF AVENTURA, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER NONMAJOR GOVERNMENTAL FUNDS For the Year Ended September 30, 2010 Special Revenue Funds Police Capital Law Police Street Outlay Park Federal Enforcement Education Maintenance Impact Development 911 Forfeiture 'Trust Fund Fund Fee Fund Fund Fund Fund Fund REVENUES: Intergovernmental revenues $ - $ 1,470,944 $ - $ - $ 173,703 $ - $ - Fines and forfeitures 7.560 - - - - 173,167 36,706 Impact fees - - 101 - - - - Interest income 74 44 119 2,237 - 4,101 1,314 Miscellaneous - - - - - - 2,625 Total revenues 7,634 1,470,988 220 2,237 173,703 177,268 40,645 EXPENDITURES: Current: Public safety 10,057 - - - 116,915 - 67,801 Community services - 1,077,116 - - - - - Capital outlay - 454,510 - 192.721 - 142,839 18,340 Debt service: Principal - - - - - - - Advance refunding escrow - - - - - - - Interest - - - - - - - Trustee fees and other - - - - - - - Total expenditures 10,057 1,531.626 - 192,721 116,915 142,839 86,141 Excess (deficiency) of revenues over expenditures (2,423) (60.638) 220 (190,484) 56,788 34,429 (45,496) OTHER FINANCING SOURCES (USES): Proceeds from refunding bonds - - - - - - - Transfers in - - - - - - - Transfers out - - - (298,200) (125,000) - - Payment to refunded bond escrow agent - - - - - - - Total other financing sources (uses) - - - (298,200) (125,000) - - Net change in fund balances (2.423) (60,638) 220 (488.684) (68,212) 34,429 (45,496) FUND BALANCES, beginning 13,733 63.606 16,337 490,930 123,216 606,774 214,687 FUND BALANCES, ending $ 11,310 $ 2,968 $ 16,557 $ 2,246 $ 55,004 $ 641.203 $ 169, I91 58 Debt Service Funds Debt Debt Service Fund Service Fund Series 2002 Series 2002 Debt Charter Charter Total Service School School Nonmajor Fund Land Building Governmental Series 1999 Acquisition Construction Funds $ - $ - $ - $ 1,644,647 - - 217.433 - - 101. 104 2 800 8,795 - - 2.625 104 2 800 1,873,601 - - - 194,773 - - - 1.077.116 - - - 808,410 515,000 155.943 174.057 845,000 520,000 - - 520,000 816,402 241,061 269,213 1,326,676 79,134 7,134 3,498 89,766 1,930,536 404,138 446,768 4,861,741 (1,930.432) (404,136) (445,968) (2.988,140) 10.385,000 - - 10,385,000 1,867,459 404,120 446.778 2,718.357 - - - (423,200) (10,321,560) - - (10,321,560) 1,930,899 404,120 446.778 2,358.597 467 (16) 810 (629,543) 15,059 25 116,382 1,660.749 $ 15,526 $ 9 $ 117,192 $ 1.031,206 59 CITY OF AVENTURA, FLORIDA SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SPECIAL REVENUE FUND POLICE EDUCATION FUND For the Year Ended September 30, 2010 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES: Fines and forfeitures 7,000 $ 7,000 $ 7,560 $ 560 Interest income 74 74 Total revenues 7,000 7,000 7,634 634 EXPENDITURES: Operating 10,000 20,733 10,057 10,676 Total expenditures 10,000 20,733 10,057 10,676 Excess (deficiency) of revenues over expenditures (3,000) (13,733) (2,423) 11,310 OTHER FINANCING SOURCES (USES): Appropriated fund balances 3,000 13,733 - (13,733) Total other financing sources (uses) 3,000 13,733 (13,733) Net change in fund balances - $ - $ (2,423) $ (2,423) 60 CITY OF AVENTURA, FLORIDA SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SPECIAL REVENUE FUND STREET MAINTENANCE FUND For the Year Ended September 30, 2010 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES: Intergovernmental revenues $ 1,550,000 $ 1,550,000 S 1,470,944 $ (79,056) Interest income 1,000 1,000 44 (956) Total revenues 1,551,000 1,551,000 1,470,988 (80,012) EXPENDITURES: Operating 1,101,000 1,101,000 1,077,116 23,884 Capital outlay 665,000 513,606 454,510 59,096 Total expenditures 1,766,000 1,614,606 1,531,626 82,980 Excess (deficiency) of revenues over expenditures (215,000) (63,606) (60,638) 2,968 OTHER FINANCING SOURCES (USES): Appropriated fund balances 215,000 63,606 - (63,606) Total other financing sources (uses) 215,000 63,606 - (63,606) Net change in fund balances $ - $ - $ (60,638) $ (60,638) 61 CITY OF AVENTURA, FLORIDA SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SPECIAL REVENUE FUND POLICE CAPITAL OUTLAY IMPACT FEE FUND For the Year Ended September 30, 2010 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES: Impact fees 500 $ 500 $ 101 (399) Interest income 119 119 Total revenues 500 500 220 (280) EXPENDITURES: Capital outlay 18,890 16,837 16,837 Total expenditures 18,890 16,837 16,837 Excess (deficiency) of revenues over expenditures (18,390) (16,337) 220 16,557 OTHER FINANCING SOURCES (USES): Appropriated fund balances 18,390 16,337 (16,337) Total other financing sources (uses) 18,390 16,337 (16,337) Net change in fund balances - $ - $ 220 $ 220 62 CITY OF AVENTURA, FLORIDA SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SPECIAL REVENUE FUND PARK DEVELOPMENT FUND For the Year Ended September 30, 2010 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES: Interest income $ - $ - $ 2,237 $ 2,237 Total revenues - - 2,237 2,237 EXPENDITURES: Capital outlay 140,000 190,930 192,721 (1,791) Total expenditures 140,000 190,930 192,721 (1,791) Excess (deficiency) of revenues over expenditures (140,000) (190,930) (190,484) 446 OTHER FINANCING SOURCES (USES): Transfers out - (300,000) (298,200) 1,800 Appropriated fund balances 140,000 490,930 - (490,930) Total other financing sources (uses) 140,000 190,930 (298,200) (489,130) Net change in fund balances $ - $ - $ (488,684) $ (488,684) 63 CITY OF AVENTURA, FLORIDA SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SPECIAL REVENUE FUND 911 FUND For the Year Ended September 30, 2010 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES: Intergovernmental revenues $ 223,000 $ 223,000 $ 173,703 $ (49,297) Total revenues 223,000 223,000 173,703 (49,297) EXPENDITURES: Operating 119,000 119,000 116,915 2,085 Capital outlay 36,423 102,216 - 102,216 Total expenditures 155,423 221,216 116,915 104,301. Excess (deficiency) of revenues over expenditures 67,577 1,784 56,788 55,004 OTHER FINANCING SOURCES (USES): Transfers out (125,000) (125,000) (125,000) - Appropriated fund balances 57,423 123,216 - (123,216) Total other financing sources (uses) (67,577) (1,784) (125,000) (123,216) Net change in fund balances $ - $ - $ (68,212) $ (68,212) 64 CITY OF AVENTURA, FLORIDA SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL DEBT SERVICE FUND SERIES 1999 For the Year Ended September 30, 2010 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES: Interest income - $ - $ 104 $ 104 Total revenues 104 104 EXPENDITURES: Debt Service: Principal 515,000 515,000 515,000 Advance refunding escrow 520,000 520,000 - Interest 827,518 827,518 816,402 11,116 Trustee fees and other 20,000 83,440 79,134 4,306 Total expenditures 1,362,518 1,945,958 1,930,536 15,422 Excess (deficiency) of revenues over expenditures (1,362,518) (1,945,958) (1,930,432) 15,526 OTHER FINANCING SOURCES (USES): Proceeds from refunding bonds 10,385,000 10,385,000 Transfers in 1,362,518 1,867,459 1,867,459 - Appropriated fund balances 15,059 (15,059) Payment to refunded bond escrow agent (10,321,560) (10,321,560) Total other financing sources (uses) 1,362,518 1,945,958 1,930,899 (15,059) Net change in fund balances - $ - $ 467 $ 467 65 CITY OF AVENTURA, FLORIDA SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL DEBT SERVICE FUND SERIES 2000 For the Year Ended September 30, 2010 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES: Interest income $ - $ - $ 25,484 $ 25,484 Total revenues - 25,484 25,484 EXPENDITURES: Debt Service: Principal 285,000 285,000 285,000 - Interest 227,755 227,755 227,304 451 Total expenditures 512,755 512,755 512,304 451. Excess (deficiency) of revenues over expenditures (512,755) (512,755) (486,820) 25,935 OTHER FINANCING SOURCES (USES): Transfers in 512,755 507,046 628,705 121,659 Appropriated fund balances - 5,709 - (5,709) Total other financing sources (uses) 512,755 512,755 628,705 115,950 Net change in fund balances $ - $ - $ 141,885 $ 141,885 66 CITY OF AVENTURA, FLORIDA SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL DEBT SERVICE FUND SERIES 2002 - CHARTER SCHOOL LAND ACQUISITION For the Year Ended September 30, 2010 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES: Interest income $ - $ - $ 2 $ 2 Total revenues - - 2 2 EXPENDITURES: Debt Service: Principal 155,943 155,943 155,943 - Interest 241,202 241,202 241 ,061 141 Trustee fees and other 7,000 7,000 7,134 (134) Total expenditures 404.145 404,145 404,138 7 Excess (deficiency) of revenues over expenditures (404,145) (404,145) (404,136) 9 OTHER FINANCING SOURCES (USES): Transfers in 404,145 404,120 404,120 - Appropriated fund balances - 25 - (25) Total other financing sources (uses) 404,145 404,145 404,120 (25) Net change in fund balances $ - $ - $ (16) $ (16) 67 CITY OF AVENTURA, FLORIDA SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL DEBT SERVICE FUND SERIES 2002 - CHARTER SCHOOL BUILDING CONSTRUCTION For the Year Ended September 30, 2010 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES: Interest income - $ - $ 800 $ 800 Total revenues - 800 800 EXPENDITURES: Debt Service: Principal 174,057 174,057 174,057 - Interest 269,221 269,221 269,213 8 Trustee fees and other 3,500 3,500 3,498 2 Total expenditures 446.778 446,778 446,768 10 Excess (deficiency) of revenues over expenditures (446,778) (446,778) (445,968) 810 OTHER FINANCING SOURCES (USES): Transfers in 446,778 446,778 446,778 - Total other financing sources (uses) 446,778 446,778 446,778 Net change in fund balances - $ - $ 810 $ 810 68 CITY OF AVENTURA, FLORIDA SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CAPITAL PROJECTS FUND ARTS AND CULTURAL CENTER FUND For the Year Ended September 30, 2010 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES: Intergovernmental revenues $ - S 2,053,195 $ 2,053,195 $ - Total revenues 2,053,195 2,053,195 - EXPENDITURES: Capital outlay - 4,705,033 4,684,418 20,615 Total expenditures 4,705,033 4,684,418 20,615 Excess (deficiency) of revenues over expenditures - (2,651,838) (2,631,223) 20,615 OTHER FINANCING SOURCES (USES): Transfers in - 975,000 954,385 (20,615) Appropriated fund balance - 1,676,838 - (1.676,838) Total other financing sources (uses) - 2,651,838 954,385 (1,697,453) Net change in fund balances $ - $ - $ (1,676,838) $ (1,676,838) 69 STATISTICAL SECTION STATISTICAL SECTION This part of City of Aventura's comprehensive annual financial report presents detailed information as a context for understanding what information in the financial statements, note disclosures and required supplementary information says about the City's overall financial health. 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 assets by component 70 Changes in net assets 71 -72 Governmental activities tax revenues by source 73 Fund balances of governmental funds 74 Changes in fund balances of governmental funds 75 -76 General governmental tax revenues by source 77 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 assessed value of taxable property 78 Property tax rates - direct and overlapping governments 79 -80 Principal property taxpayers 81 Property tax levies and collections 82 Debt Capacity: These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Ratios of outstanding debt by type 83 Ratios of bonded debt outstanding 84 Direct and overlapping governmental activity debt 85 Legal debt margin information 86 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Demographic and economic statistics 87 Occupational employment by group - Miami -Dade County, Florida 88 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. Full -time equivalent government employees by function 89 Operating indicators by function 90 Capital asset statistics by function 91 Sources: Unless otherwise indicated, information in these schedules is derived from the comprehensive annual financial reports for the respective years. 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W t' v b y q E ? y W G =a Z °' z E a "" °C' v r v c ., v ti >' c C. y ei > �. ;� ., y y W m X 0 # u k- q c m l r c a. z C.7 r�".> . Q W y ... W Q 5 W r>> c.y - M 7 c m z WLq G . s. _ 'C7 z U CITY OF AVENTURA OFFICE OF THE CITY MANAGER MEMORANDUM TO: City Commission FROM: Eric M. Soroka, ICMA -CM, Cit Snag M DATE: March 23, 2011 SUBJECT: Traffic Control Jurisdiction Agreement — Coronado Condominium Association, Inc. April 5, 2011 City Commission Meeting Agenda Item 5 —E RECOMMENDATION It is recommended that the City Commission authorize the execution of the attached Traffic Control Jurisdiction Agreement with Coronado Condominium Association, Inc. to provide traffic control jurisdiction by our Police Department over the private roads adjacent to the subject property. The Agreement will increase the visibility of the police force and enhance traffic enforcement. BACKGROUND The previous Traffic Control Jurisdiction Agreement has been updated to reflect changes in State law and police procedures. Therefore, we have requested all condominiums or homeowners associations to enter into the new agreement attached hereto. In our continued efforts to provide improved police services to the community, we have initiated a program in the past that allows a condominium or homeowners associations to enter into an Agreement with the City to provide traffic control jurisdiction over a private roadway within the development. This permits the Police Department to conduct traffic enforcement activities on private property at the request of the owner. Florida State Statute 316.006 allows municipalities to enter into such agreements provided they are reimbursed for the actual costs of traffic control and enforcement, the owner agrees to indemnify the City and provide liability insurance. The City will bill the owner $25.00 per hour for each officer required to perform the traffic enforcement detail when requested by the owner. Whenever possible, traffic Memo to City Commission Page 2 complaints made by the occupants of the property will be responded to and handled as a call for service, without charge to the owner. The program has been received well by the community. If you have any questions, please feel free to contact me. EMS /act Attachment CC01734 -11 RESOLUTION NO. 2011 - A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA AUTHORIZING THE CITY MANAGER TO EXECUTE THE ATTACHED TRAFFIC CONTROL JURISDICTION AGREEMENT BETWEEN CORONADO CONDOMINIUM ASSOCIATION, INC., AND THE CITY OF AVENTURA; AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO CARRY OUT THE AIMS OF THIS RESOLUTION; AND PROVIDING AN EFFECTIVE DATE. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, THAT: Section 1. The City Manager is hereby authorized to execute the attached Traffic Control Jurisdiction Agreement between Coronado Condominium Association, Inc., and the City of Aventura. Section 2. The City Manager is hereby authorized to do all things necessary to carry out the aims of this Resolution. Section 3. This Resolution shall become effective immediately upon its adoption. The foregoing resolution was offered by Commissioner , who moved its adoption. The motion was seconded by Commissioner , and upon being put to a vote, the vote was as follows: Commissioner Zev Auerbach Commissioner Teri Holzberg Commissioner Billy Joel Commissioner Michael Stern Commissioner Luz Urbaez Weinberg Vice Mayor Bob Diamond Mayor Susan Gottlieb Resolution No. 2011 -_ Page 2 PASSED AND ADOPTED this 5 th day of April, 2011. SUSAN GOTTLIEB, MAYOR ATTEST: TERESA M. SOROKA, MMC CITY CLERK APPROVED AS TO LEGAL SUFFICIENCY: CITY ATTORNEY L n TRAFFIC CONTROL JURISDICTION AGREEMENT THIS AGREEMENT is made and entered into this I day of ( e(1 20/S by and between 6f0 &cio CO V!.(.6 Volt l' dry, s Co e te, )", ,7i- , (the "Owner ") and the City of Aventura, Florida, a Florida municipal corporation (the "City "). RECITALS A. Owner owns fee simple title to all the private roadways within the area described as follows: 203 x? r.✓• C004 Ct' r . A,,�„►� � f ft. 3 I o e ooy reoimor afezt p ro o r/ of Dade County, Florida, and commonly known as Coro v 690 CY l / 0v.l in h/1,-7 (the "Private Roads "). S. Owner desires the City to exercise traffic control jurisdiction over the Private Roads, and City desires to exercise such traffic control jurisdiction, pursuant to Florida State Statutes 316.00P. NOW, THEREFORE, for Ten and No /100 Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Owner and City agree as follows: 1. Recitals. The foregoing Recitals are true and correct and are incorporated herein by this reference. 2. Traffic Control Jurisdiction Services. The City agrees to exercise traffic control jurisdiction over the Private Roads in accordance with the following terms and conditions. (a) City shall provide for Police Officers of its Police Department to patrol, by motor vehicle, the Private Roads, in accordance with the schedule and manpower indicated on Exhibit "A" attached hereto, subject to availability. (b) in exercising such traffic control jurisdiction, the City shall enforce the traffic laws generally applicable to streets and highways under the City's original jurisdiction which are similar in nature to the Private Roads. (c) The City's exercise of traffic control jurisdiction pursuant to this Agreement shall be in addition to the jurisdictional authority presently exercised by the City over the Private Roads under law, and nothing herein shall be construed to limit or remove any such jurisdictional authority, the City agreeing to continue to provide such other police services as are otherwise provided under law. (d) In addition to exercising traffic control jurisdiction over the Private Roads as indicated on Exhibit "A ", the City shall be entitled to exercise traffic control jurisdiction, even when not requested by Owner; provided, however, the City shall not be entitled to any compensation from Owner pursuant to Paragraph 3 below for exercising such discretionary additional traffic control jurisdiction, although the City shall be entitled to retain all revenues from traffic citations issued by the City for violations of traffic laws along the Private Roads, in accordance with law. 2 (e) Nothing in this Agreement shall require, authorize or permit the City to exercise any control or responsibility concerning the installation or maintenance of traffic control devices. 3. Compensation. (a) Routine Patrol Activity - Except as provided in subsection (b), Owner shall not be responsible to pay the City any compensation for performing routine patrol activity pursuant to this Agreement. Routine Patrol Activity shall mean a level of patrol activity equivalent to that which is randomly provided on public roads. The City shall be entitled to retain all revenues from traffic citations issued by the City for violation of traffic laws along the Private Roads as provided by law. This shall not preclude the assessment of impact fees or other fees provided by law. (b) Extended Patrol Activity - Owner shall compensate City for extended patrol activities conducted by the City on the Private Roads at Owner's request in accordance with the rate schedule enumerated in Exhibit "B ". Extended Patrol Activity shall mean any patrol outside of the scope of the City's routine patrol of the Private Roads requested by the Owner that requires more than one (1) hour additional patrol time within any twenty -four hour period. 4. Liability Not Increased. Neither the existence of this Agreement nor anything contained herein shall give rise to any greater liability on the part of the City 3 than the City would ordinarily be subjected to when providing its normal police services as routinely provided throughout the City. 5. Term. The term of this Agreement shall be one (1) year commencing on the date hereof and ending one (1) year following the date hereof, and shall thereafter automatically continue for successive one (1) year terms, unless terminated by either party _upon written notice to the other party given at least thirty (30) days prior to the expiration of the then - applicable one (1) year term. 6. Enti Agreem This Agreement constitutes the entire understanding and agreement of the parties with respect to the subject matter hereof and may not be changed, altered or modified except by an instrument in writing signed by the party against whom enforcement of such change would be sought. 7. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida. Venue for any litigation between the parties for any controversy arising from or related to this Agreement shall be in the 11 Judicial Circuit in and for Miami -Dade County, Florida. The parties hereby voluntarily waive any right to trial by jury for any litigation between the parties which arises out of this Agreement or the provision of law enforcement services to Owner hereunder. 8. Indemnification and Insurance. Owner agrees to defend, indemnify and hold the City harmless from any claim, demand, suit, loss, cost, expense or damage which may be asserted, claimed or recovered against or from the City by reason of any property damage or bodily injury, including death, sustained by any person whomsoever, which said claim, demand, suit, loss, cost, expense or damage arises out of or is incidental to or in any way connected with this Agreement, and regardless of 4 whether such claim, demand, suit, loss, damage, cost or expense is caused in whole or in part by City's negligence, or by the negligence of City's agents, servants or employees. In support, but not in limitation of this indemnification provision, Owner hereby agrees to maintain and pay all premiums for a policy of comprehensive general liability insurance i an amount of not less then $300,000 combined single limit insurance covering any occurrence on or adjacent to the Private Roads described above, resulting in property damage or bodily injury or death to person or persons. Such insurance policy shall name the City and City's officers, agents and employees as additional insured with respect to traffic control or enforcement of the Private Roads and shall provide for 30 days prior written notice of any cancellation or change in scope or amount of coverage of such policy. Owner shall furnish City with a Certificate of Insurance evidencing compliance with the provisions of this section. EXECUTED as of the date first above written in several counterparts, each of which shall be deemed an original, but all constituting one Agreement. Signed, sealed and delivered OWNER: In the presence of: te pk„/Z ;, Edward E Barrios ? :° ,:, ',.: COMM!SS!ON * EE001055 ;'' %��'1. ExP!Rrs: JUN.15 2014 WWW.AARONNOTARY.am CITY OF AVENTURA, a Florida Municipal corporation ATTEST: By 5 EXHIBIT "A" Patrol Aventura Police Officers in marked police vehicles or motorcycles may patrol the Private Roads on a random basis each day. Whenever possible, Traffic complaints made by occupants of the property, will be responded to and handled as a call for service, without charge to the Owner. Traffic complaints that require Extended Patrol Activity, where the cost of service will be billed to the Owner, will only be conducted with prior approval of the Owner. When requested by the Owner to perform specific traffic enforcement duties, the Owner will be billed in accordance with Exhibit "B ". 7 EXHIBIT "B" Compensation The City will bill the Owner $25.00 per hour for each officer requested to perforrrr the Extended Patrol Activity. 8 CITY OF AVENTURA OFFICE OF THE CITY MANAGER MEMORANDUM TO: City Commission FROM: Eric M. Soroka, ICMA -CM, City : nage DATE: March 9, 2011 SUBJECT: Traffic Control Jurisdiction Agreement — Williams Island Property Owners Association, Inc. April 5, 2011 City Commission Meeting Agenda Item RECOMMENDATION It is recommended that the City Commission authorize the execution of the attached Traffic Control Jurisdiction Agreement with Williams Island Property Owners Association, Inc. to provide traffic control jurisdiction by our Police Department over the private roads adjacent to the subject property. The Agreement will increase the visibility of the police force and enhance traffic enforcement. BACKGROUND The previous Traffic Control Jurisdiction Agreement has been updated to reflect changes in State law and police procedures. Therefore, we have requested all condominiums or homeowners associations to enter into the new agreement attached hereto. In our continued efforts to provide improved police services to the community, we have initiated a program in the past that allows a condominium or homeowners associations to enter into an Agreement with the City to provide traffic control jurisdiction over a private roadway within the development. This permits the Police Department to conduct traffic enforcement activities on private property at the request of the owner. Florida State Statute 316.006 allows municipalities to enter into such agreements provided they are reimbursed for the actual costs of traffic control and enforcement, the owner agrees to indemnify the City and provide liability insurance. The City will bill the owner $25.00 per hour for each officer required to perform the traffic enforcement detail when requested by the owner. Whenever possible, traffic Memo to City Commission Page 2 complaints made by the occupants of the property will be responded to and handled as a call for service, without charge to the owner. The program has been received well by the community. If you have any questions, please feel free to contact me. EMS /act Attachment CC01732 -11 RESOLUTION NO. 2011 - A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA AUTHORIZING THE CITY MANAGER TO EXECUTE THE ATTACHED TRAFFIC CONTROL JURISDICTION AGREEMENT BETWEEN WILLIAMS ISLAND PROPERTY OWNERS ASSOCIATION, INC., AND THE CITY OF AVENTURA; AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO CARRY OUT THE AIMS OF THIS RESOLUTION; AND PROVIDING AN EFFECTIVE DATE. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, THAT: Section 1. The City Manager is hereby authorized to execute the attached Traffic Control Jurisdiction Agreement between Williams Island Property Owners Association, Inc., and the City of Aventura. Section 2. The City Manager is hereby authorized to do all things necessary to carry out the aims of this Resolution. Section 3. This Resolution shall become effective immediately upon its adoption. The foregoing resolution was offered by Commissioner , who moved its adoption. The motion was seconded by Commissioner , and upon being put to a vote, the vote was as follows: Commissioner Zev Auerbach Commissioner Teri Holzberg Commissioner Billy Joel Commissioner Michael Stern Commissioner Luz Urbaez Weinberg Vice Mayor Bob Diamond Mayor Susan Gottlieb Resolution No. 2011 -_ Page 2 PASSED AND ADOPTED this 5 th day of April, 2011. SUSAN GOTTLIEB, MAYOR ATTEST: TERESA M. SOROKA, MMC CITY CLERK APPROVED AS TO LEGAL SUFFICIENCY: CITY ATTORNEY r �j\ TRAFFIC CONTROL JURISDICTION AGREEMENT n THIS AGREEMENT 's made and entered into this (-4 of - . 20 ( by an d b \f IL L.4 I nft c 1 S't 4J I' f pi2orgr.1 �a 16 1 . • -I (Trio (the "Owner ") and the City of Aventura, Florida, a Florida municipal corporation (t ,I i "City") RECITALS A. Owner owns fee simple title to all the private roadways within the area described as foilow C � PAJ'-. ,1'I ISM ' o f- (4 - f 0 o of a e oun�y, Florida, and common nown as C0( -L4 e 1 Yi C J ,- }' (the "Private Roads") P. Owner desires the City to exercise traffic control jurisdiction over the Private Roads, and City desires to exercise such traffic control jurisdiction, pursuant to Florida State Statutes 316.000. NOW, THEREFOR =E, for Ten and No /100 Dollars ($10.00) and other good and valuable consideraticr, the receipt and sufficiency of which are hereby acknowledged, Owner and Ci, -y agree as follows: 1 ; Recita's. 4 foregoing Recitals are true and correct and are incorporated herein by this reference. 2. Traffic Control Jurisdiction Services. The City agrees to exercise traffic control jurisdiction over the Private Roads in accordance with the following terms and conditions. (a) City shall provide for Police Officers of its Police Department to patrol, by motor vehicle, the Private Roads, in accordance with the schedule and manpower indicated or Exhibit "A" attached hereto, subject to availability. (b) In exercising such traffic control jurisdiction, the City shall enforce the traffic laws generally applicable to streets and highways under the City's original jurisdiction which are similar in nature to the Private Roads. (c) The City's exercise of traffic control jurisdiction pursuant to this Agreement shall be in addition to the jurisdictional authority presently exercised by the City over the Private Roads under law. ancd nothing herein shall be construed to limit or remove any such jurisdictional tional suthority, the City agreeing to continue to provide such other police services as are otherwise provided under law. (d) lr, addition to exercising traffic control jurisdiction over the Private Roads as indicated on Exhibit "A ", the City shall be entitled to exercise traffic control jurisdiction, even when not requested by Owner; provided, however, the City shall not be entitled to any compensation from Owner pursuant to Paragraph 3 below for exercising such djsctetion^ , additional traffic contrc' jurisdiction, although the City shall oe entitled to retain all revenues from traffic citations issued by the City for violations of traffic laws along the Private Roads, in accordance with law. 2 (e) Nothing in this Agreement shall require, authorize or permit the City to exercise any control or responsibility concerning the installation or maintenance of traffic control devices. 3. Compensation. (a) Routine Patrol Activity - Except as provided in subsection (b), Owner shat' not be responsible to pay the City any compensation for oerforniing routine patrol activity pursuant to this Agreement. Routine Patrol Activity shall mean a level of patrol activity equivalent to that which is randomly provided on public roads. The City shall be entitled to retain all revenues from traffic citations issued by the City for violation of traffic laws along the Private Roads as provided by law. This shall not preclude the assessment ,c¢ impact fees or other fees provided by law. (b) Extended Patrol Activity - Owner shall compensate City for extended patrol activities conducted by the City on the Private Roads at Owner's request in accordance with the rate schedule enumerated in Exhibit "8 ". Extended Patrol Activity shall mean any patrol outside of the scope of the City's routine patrol of the Private Roads requested by the Owner that r. quires more than one (1) hour additional patrol time :within any twenty -four hour period. 4. Liability Not lncreased. Neither the existence of this Agreement nor antit,hino on': fined herein shali give rise to any greater liability on the part of the City 3 than the City would ordinarily be subjected to when providing its normal police services as routinely provided throughout the City. 5. Terrn. The term of this Agreement shall be one (1) year commencing on the date hereof and ending one (1) year following the date hereof, and shall thereafter automatically continue for successive one (1) year terms, unless terminated by either - party. upon written notice to the other party given at least thirty (30) days prior to the expiration of the then appiicabie one (1) year term. 6. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties with respect to the subject matter- hereof and may not be changed, altered or modified except by an instrument in writing signed by the party against whom enforcement of such change would be sought. r , Governing Law. This 'agreement shall be governed by and construed in accordance with the laws of the State of Florida. Venue for any litigation between the parties for any contro versy arising from or related to this Agreement shall be in the 11 Judicial Circuit in and for Miami -Dade County, Florida. The parties hereby voluntarily waive any right to trial by jury for any litigation between the parties which arises out of this Agreement or the provision of law enforcement services to Owner hereunder. 8. Indemnification and Insurance. Owner agrees to defend, indemnify and hold the City harmiess from any claim, demand, suit, loss, cost, expense or damage which may be asserted, claimed or recovered against or from the City by reason of any property damage or bodily injury, incli.. =ding death, sustained by any person whomsoever, which said claim, demand, suit, loss, cost, expense or damage' ai - ises out of or is lhhide ntal to cr in any way connected with this Agreement, and regardless of A whether such claim, demand, suit, loss, damage, cost or expense is caused in whole or in part by City's negligence, or by the negligence of City's agents, servants or employees. in support, but not in limitation of this indemnification provision, Owner hereby agrees to maintain and pay all premiums for a policy of comprehensive general liability insurance in an amount of not less then $300,000 combined single limit insurance covering any occurrence on or adjacent to the Private Roads described above, resulting in property damage or bodily injury or death to person or persons. Such insurance policy sh;a l' name the City and City's officers, agents and employees as additional insured with respect to traffic control or enforcement of the Private Roads and shall provide for 30 days prior written notice of any cancellation or change in scope or amount of coverage of such policy. Owner shall furnish City with a Certificate of insurance evidencing compliance with the provisions of this section. EXECUTED as of the date first above written in several counterparts, each of which shall be deemed an original, but ail constituting one Agreement. Signed, sealed and delivered OJ'dNl R In the presence of: Keitt Pkvert BY L, Wry MICHELLE M DIAZ t �R Y .PV y ? ' MY COMMISSION #DD832701 EXPIRES: OCT 20, 2012 w B through tst State 1 urance 1 ) , U J �, CITY OF AVENTURA, a Florida Municipal corporation ATTEST: By 5 Teresa M. Soroka, MMC Eric M. Soroka, ICMA -CM City Clerk City Manager Approved, as to i_ega' Sufficiency: City Attorney 6 EXHIBIT "A" Patrol Aventura. Police Officers in marked police vehicles or motorcycles may patrol the Private Roads on a random basis each day. Whenever possible. Traffic complaints made by occupants of the property, will be responded 10 and handled as a call for service, without charge to the Owner. Traffic complaints that require Extended Patrol Activity, where the cost of service will be billed to the Owner. will only be conducted with prior approval of the Owner. When requested by the Owner to perform specific traffic enforcement duties, the Owner will be billed in accordance with Exhibit "3 ". 7 EXHIBIT "13" Compensation The City will hill the Owner $25.00 per hour for each officer requested to perform the Extended Patrol Activity. 8 CITY OF AVENTURA OFFICE OF THE CITY MANAGER MEMORANDUM TO: City Commission FROM: Eric M. Soroka, ICMA -CM, City er DATE: March 8, 2011 SUBJECT: Traffic Control Jurisdiction Agre nt — Eldorado Towers Condominium Association, Inc. April 5, 2011 City Commission Meeting Agenda Item 5-G RECOMMENDATION It is recommended that the City Commission authorize the execution of the attached Traffic Control Jurisdiction Agreement with Eldorado Towers Condominium Association, Inc. to provide traffic control jurisdiction by our Police Department over the private roads adjacent to the subject property. The Agreement will increase the visibility of the police force and enhance traffic enforcement. BACKGROUND The previous Traffic Control Jurisdiction Agreement has been updated to reflect changes in State law and police procedures. Therefore, we have requested all condominiums or homeowners associations to enter into the new agreement attached hereto. In our continued efforts to provide improved police services to the community, we have initiated a program in the past that allows a condominium or homeowners associations to enter into an Agreement with the City to provide traffic control jurisdiction over a private roadway within the development. This permits the Police Department to conduct traffic enforcement activities on private property at the request of the owner. Florida State Statute 316.006 allows municipalities to enter into such agreements provided they are reimbursed for the actual costs of traffic control and enforcement, the owner agrees to indemnify the City and provide liability insurance. The City will bill the owner $25.00 per hour for each officer required to perform the traffic enforcement detail when requested by the owner. Whenever possible, traffic Memo to City Commission Page 2 complaints made by the occupants of the property will be responded to and handled as a call for service, without charge to the owner. The program has been received well by the community. If you have any questions, please feel free to contact me. EMS /act Attachment CC01731 -11 RESOLUTION NO. 2011 - A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA AUTHORIZING THE CITY MANAGER TO EXECUTE THE ATTACHED TRAFFIC CONTROL JURISDICTION AGREEMENT BETWEEN ELDORADO TOWERS CONDOMINIUM ASSOCIATION, INC., AND THE CITY OF AVENTURA; AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO CARRY OUT THE AIMS OF THIS RESOLUTION; AND PROVIDING AN EFFECTIVE DATE. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, THAT: Section 1. The City Manager is hereby authorized to execute the attached Traffic Control Jurisdiction Agreement between Eldorado Towers Condominium Association, Inc., and the City of Aventura. Section 2. The City Manager is hereby authorized to do all things necessary to carry out the aims of this Resolution. Section 3. This Resolution shall become effective immediately upon its adoption. The foregoing resolution was offered by Commissioner , who moved its adoption. The motion was seconded by Commissioner , and upon being put to a vote, the vote was as follows: Commissioner Zev Auerbach Commissioner Teri Holzberg Commissioner Billy Joel Commissioner Michael Stern Commissioner Luz Urbaez Weinberg Vice Mayor Bob Diamond Mayor Susan Gottlieb Resolution No. 2011 - Page 2 PASSED AND ADOPTED this 5 th day of April, 2011. SUSAN GOTTLIEB, MAYOR ATTEST: TERESA M. SOROKA, MMC CITY CLERK APPROVED AS TO LEGAL SUFFICIENCY: CITY ATTORNEY 1 n1 �� r ^� - .. o f a TRAFFIC CONTROL JURISDICTION AGREEMENT THIS AGREEMENT is 20_ � and entered into this day of . 20 by and between E( d�, % 6rkei l iM akA M0 r t k 0 � i 46, , (the "Owner ") and the City of Aventura, Florida, a Florida municipal corporation (the "City"). RECITALS A. Owner owns fee simple title to all the private roadways within the area described as follows: i r - ,( ;: ,--i 5 AL ceimtl civid' bir4e. 4-4vci of Dade County, Florida, and commonly known as Egekr4 AO el d (the "Private Roads "). B. Owner desires the City to exercise traffic control jurisdiction over the Private Roads, and City desires to exercise such traffic control jurisdiction, pursuant to Florida State Statutes 316.006. NOW, THEREFORE, for Ten and No /100 Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Owner and City agree as follows: 1. Recitals. The foregoing Recitals are true and correctAad are incorporated RECEN herein by this reference. :OFFICE OF THE CITY MANAGEE 2. Traffic Control Jurisdiction Services. The City agrees to exercise traffic control jurisdiction over the Private Roads in accordance with the following ter ins z .id conditions. (a) City shall provide for Police Officers of its Police Department to patrol, by motor vehicle, the Private Roads, in accordance with the schedule and manpower indicated on Exhibit "A" attached hereto, subject to availability. (b) In exercising such traffic control jurisdiction, the City shall enforce the traffic laws generally applicable to streets and highways under the City's original jurisdiction which are similar in nature to the Private Roads. (c) The City's exercise of traffic control jurisdiction pursuant to this Agreement shall be in addition to the jurisdictional authority presently exercised by the City over the Private Roads under law, and nothing herein shall be construed to limit or remove any such jurisdictional authority, the City agreeing to continue to provide such other police services as are otherwise provided under law. (d) In addition to exercising traffic control jurisdiction over the Private Roads as indicated on Exhibit "A ", the City shall be entitled to exercise traffic control jurisdiction, even when not requested by Owner; provided, however, the City shall not be entitled to any compensation from Owner pursuant to Paragraph 3 below for exercising such discretionary additional traffic control jurisdiction, although the City shall be entitled to retain all revenues from traffic citations issued by the City for violations of traffic laws along the Private Roads, in accordance with law. 2 (e) Nothing in this Agreement shall require, authorize or permit the City to exercise any control or responsibility concerning the installation or maintenance of traffic control devices. 3. Compensation. (a) Routine Patrol Activity - Except as provided in subsection (b), Owner shall not be responsible to pay the City any compensation for performing routine patrol activity pursuant to this Agreement. Routine Patrol Activity shall mean a level of patrol activity equivalent to that which is randomly provided on public roads. The City shall be entitled to retain all revenues from traffic citations issued by the City for violation of traffic laws along the Private Roads as provided by law. This shall not preclude the assessment of impact fees or other fees provided by law. (b) Extended Patrol Activity - Owner shall compensate City for extended patrol activities conducted by the City on the Private Roads at Owner's request in accordance with the rate schedule enumerated in Exhibit "B". Extended Patrol Activity shall mean any patrol outside of the scope of the City's routine patrol of the Private Roads requested by the Owner that requires more than one (1) hour additional patrol time within any twenty -four hour period. 4. Liability Not Increased. Neither the existence of this Agreement nor anything contained herein shall give rise to any greater liability on the part of the City 3 than the City would ordinarily be subjected to when providing its normal police services as routinely provided throughout the City. 5. Term. The term of this Agreement shall be one (1) year commencing on the date hereof and ending one (1) year following the date hereof, and shall thereafter automatically continue for successive one (1) year terms, unless terminated by eiter party upon written notice to the other party given at least thirty (30) days prior to the expiration of the then- applicable one (1) year term. 6. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties with respect to the subject matter- hereof and may not be changed, altered or modified except by an instrument in writing signed by the party against whom enforcement of such change would be sought. 7. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida. Venue for any litigation between the parties for any controversy arising from or related to this Agreement shall be in the 1 l th Judicial Circuit in and for Miami -Dade County, Florida. The parties hereby voluntarily waive any right to trial by jury for any litigation between the parties which arises out of this Agreement or the provision of law enforcement services to Owner hereunder. 8 indemnification and insurance. Owner agrees to defend, indemnify and hold the City harmless from any claim, demand, suit, loss, cost, expense or damage which may be asserted, claimed or recovered against or from the City by reason of any property damage or bodily injury, including death, sustained by any person whomsoever, which said claim, demand, suit, loss, cost, expense or damage arises out of or is incidental to or in any way connected with this Agreement, and regardless of 4 whether such claim, demand, suit, loss, damage, cost or expense is caused in whole or in part by City's negligence, or by the negligence of City's agents, servants or employees. In support, but not in limitation of this indemnification provision, Owner hereby agrees to maintain and pay all premiums for a policy of comprehensive general liability insurance in an amount of not less then $300,000 combined single limit insurance covering any occurrence on or adjacent to the Private Roads described above, resulting in property damage or bodily injury or death to person or persons. Such insurance policy :hall name the City and City's officers, agents and employees as additional insured with respect to traffic control or enforcement of the Private Roads and shall provide for 30 days prior written notice of any cancellation or change in scope or amount of coverage of such policy. Owner shall furnish City with a Certificate of Insurance evidencing compliance with the provisions of this section. EXECUTED of the date first above written in several counterparts, each of which shall be deemed an original, but all constituting one Agreement. Signed, sealed and delivered OWNER: In the presence of: Mirta 1 F r4c.w . O L e e R ,Rio BY Le ..ii I di i CITY OF AVENTURA, a Florida Municipal corporation Al IE' T: '`' By : l r . I LLCM ROMERO � 1 t . � l'4 ; MY COMMISSION A DD 856485 �": g � = 2013 EXPIRES: Ma Pu cl o Undervaiters 'Rt, Bonded 'Nu BondNo1ery EXHIBIT "A" Patrol Aventura Police Officers in marked police vehicles or motorcycles may patrol the Private Roads on a random basis each day. Whenever possible, Traffic complaints made by occupants of the property, will be responded to and handled as a call for service, without charge to the Owner. Traffic complaints that require Extended Patrol Activity, where the cost of service will be billed to the Owner, will only be conducted with prior approval of the Owner. When requested by the Owner to perform specific traffic enforcement duties, the Owner will be billed in accordance with Exhibit "B". 7 EXHIBIT "B' Compensation The City will bill the Owner $25.00 per hour for each officer requested to perform the Extended Patrol Activity. 8 CITY OF AVENTURA COMMUNITY DEVELOPMENT DEPARTMENT MEMORANDUM TO: City Commission FROM: Eric M. Soroka, ICM -C City Manager 4 BY: Joanne Carr, AICP Community Developme irector DATE: March 9, 2011 SUBJECT: Request of Miami -Dade County Public Library System for extension of time to obtain a building permit for the Northeast Public Library Branch at 2930 Aventura Boulevard (01- VAR -11 EXT) April 5, 2011 City Commission Meeting Agenda Item 5 14 RECOMMENDATION It is recommended that the City Commission approve a motion to extend the time to obtain a building permit for the construction of the new Northeast Public Library Branch for a further six (6) months from May 4, 2011 to November 4, 2011. THE REQUEST The applicant, Miami -Dade Public Library System, is requesting approval of a motion to extend the time to obtain a building permit for the Northeast Public Library Branch at 2930 Aventura Boulevard approved by Resolution No. 2010 -28 adopted on May 4, 2010. (See Exhibit #1 for Letter of Intent) BACKGROUND OWNER OF PROPERTY Dade County APPLICANT Julio E. Castro, Library Capital Development Co- ordinator, Miami -Dade Public Library System ADDRESS OF PROPERTY 2930 Aventura Boulevard (See Exhibit #2 for Location Plan) LEGAL DESCRIPTION Part Tract G, Aventura Second Addition, according to the plat recorded in Plat Book 99, Page 21, Public Records of Miami -Dade County, Florida (see Exhibit #3 for complete legal description) ZONING B2 Community Business District The Site — The site is located on the south side of Aventura Boulevard at NE 29 Avenue with a municipal address of 2930 Aventura Boulevard, City of Aventura. It is bounded by the Miami -Dade Fire Rescue station to the west, a retail plaza to the east, Aventura Boulevard to the north and the Aventura Mall property to the south. The Project — The applicant was granted variance approval by Resolution No. 2010 -28 adopted by the City Commission on May 4, 2010 to allow 42 parking spaces where 79 parking spaces are required by City Code. (See Exhibit #4 for Resolution). One of the conditions of approval of the variance was that ... "Permits shall be obtained within twelve (12) months of the date of the Resolution or the approvals granted shall be deemed null and void unless extended by a motion of the City Commission." The twelve month time limit expires on May 4, 2011. The building permit application and plans have been reviewed and approved by the City as of March 9, 2011. As of the date of writing of this report, the applicant needs to choose a contractor, register that contractor with the City and provide special inspector's forms for soil compaction and steel. The County has advised that it may take some time, due to its standard protocol, to engage a specialty consultant to complete these forms but that it will move forward as quickly as possible. In the event that this documentation required to issue the permit is not received by the City prior to May 4, 2011, the applicant requests an extension of the time to preserve the parking variance granted in the resolution. At the City Commission workshop meeting of February 17, 2011, the applicant advised that it expects to commence construction in summer, 2011 and complete the building in January, 2013. The City Commission requested that the County explore alternatives to expedite construction. Staff is recommending approval of a six (6) month extension of the time to obtain a building permit from May 4, 2011 to November 4, 2011. 2 Miami -Dade Public Library System 101 West Hagler Street M 1 A M I•DADE A/tiami, Florida 33130-1523 305- 375 -ROOK www. mdp(s. org Carlos Alvarez, Mayor miamidade.gov February 28, 2011 City of Aventura Community Development Department 19200 West Country Club Drive Aventura, FL 33180 Re: Request for Extension to the Existing Variance or Modification of Condition of Variance City Code Section 31 -76: Variance on Parking for Property Located at 2930 Aventura Boulevard, Aventura, FL 33189 - City of Aventura Commission Resolution No. 2010 -28). To Whom It May Concern: By means of this letter Miami —Dade County respectfully requests an extension to the Variance on Parking approved and adopted by the City of Aventura Commission on May 4, 2010 (Resolution No. 2010 -28) for the property located at 2930 Aventura Boulevard, Aventura, FL 33189. This request is being submitted in an effort to avoid the one year expiration of the existing Variance on Parking prior to the issuance of a permit to Miami -Dade County for construction of the Northeast Regional Library at the above mentioned property. A check (VNGS11002575) for this request has already been issued by the County's General Services Administration Department to the City of Aventura. Thank you for your prompt attention to this matter. Sincerely, Julio E. Castro Library Capital Development Coordinator Miami Dade Public Library System 101 West Flagler Street Miami, FL 33130 • Exhibit #1 01- VAR -11 EXT — BROWARD COUNTY ■' IMMI' M . • ene'ri4' "I 11"1 5191' I TIN' NI Y'r 6Ti �'r: i a � DADE COUNTY •• Gulfstream ■�! !'�'AP%Fr i7'Y59 S' , • Park YACHT CLUB DR. • • • MARINA • • Areat Q. H..1./co ARBOR CIRCLE • • Hospital i / J I WAY • • Center Q A `N • • M ^ ■ ') Waterways • • • WATERWAYS t�l ll Shoppes 207 ST. ■ ■ w w ■ Q COUNTRY CLUB DR. • r Q • The c 205 ST. M • • • Promenade co V et Shops co O ■ • • IVES DAIRY RD. ■ 203 ST. �'�� <L � , c) \.„_ 1 ' a .• N '• 201 TER. rn tr • • Of N 0 Turnberry Isle . • m '• p. m Resort &'Club • Q ,� AVENTU = w J • w Fire I • . Rescue Aventura ..::...„4.,,,,;,,': a N • ;� Station Library ;t'1 , fi x ,era`pr . � •'- Q Subject S , M ' t ° 3 . - v , r 9 4 ar. i F :0 . ; i �Q� • t■ Aventura M . :::;5,,,f.010,04 - 15,1 r z m 7 � _ O YAC4T 2- • City of Aventura U LOB �J • :r Government Center K . . A' •S h a r ::: Z* `0 . Q- • : x M • w .■ Loehmann ,> 190 ST. • Fashion ui - I • . Island Q • O • N 188 ST • m 2 • MIAMI % • 187 ST. Q GARDENS DR. • 33180 • w — • —•_•�— 1�S STS ._ ._.— .— ...._.._. .� o 33 60, U 1 ST._ Bay • ,•� 1. . • Atlantic • Biscayne t" Little z : 1 Williams • • : Ocean • • l arbour 180 Sl' Maule w N ;a Lake r • Point i:. i• (� t$� • �. • ;i ;• East ` • r ., ♦lwa • i 2 l az . n__�. i • + AST O R. • y • W • ® ���t i!-I .. � ... � LEGEND •, .: Q i Maule * t � '' • e .....,...„ ,.. � 1 Lake � . . 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' i � 1 �A h ....... - -- ZIP Code Boundary ry ♦� Railroad • • Y 1 r .� . . • I J - Exhibit #2 01- VAR -11 EXT LEGAL DESCRIPTION: Tax Folio # 28- 2203 - 025 -0050 Subject Parcel (ORB 9577 PG 1701) Fee Simple a /k/a "Parcel A" (ORB 9583 PG 314) A portion of Tract G of AVENTURA, SECOND ADDITION, according to the plat thereof recorded in Plat Book 99 at Page 21, of the Public Records of Dade County, Florida, more particularly described as follows: Commence at the most Westerly corner of said Tract G; thence run S 13 °08'55" E, along the most Westerly line of said Tract G, for a distance of 35.42 feet to the point of intersection with the arc of a circular curve concentric with and 35.00 feet Southeasterly of the Northerly boundary of said Tract G as measured radially, said point of intersection being the Point of Beginning of the herein described parcel; thence continue to run S 13 °08'55" E, along the most Westerly line of said Tract G, for a distance of 247.80 feet to a point on a Southerly boundary of said Tract G; thence run N 76 °51'05" E, along a Southerly boundary of said Tract G, for a distance of 210.00 feet; thence run N 13 °08'55" W, parallel with the most Westerly line of said Tract G, for a distance of 267.50 feet; thence run S 76 °51'05" W, parallel with the most Westerly Southerly line of said Tract G, for a distance of 40.00 feet; thence run N 13 °08'55" W, parallel with the most Westerly line of said Tract G, for a distance of 2.90 feet to the point of intersection with the arc of a circular curve concentric with and located 35.00 feet South of the Northerly boundary of said Tract G as measured radially, the center of said curve bears S 19 °23'52" E from said point of intersection; thence run Southwesterly along the arc of said circular curve concentric with the Northerly boundary of said Tract G, having a radius of 3711.72 feet, through a central angle of 2 °38'51" for an arc distance of 171.51 feet to the Point of Beginning. Appurtenant Interests of Subiect Parcel (3 Parcels) "Parcel 8" (ORB 9583 PG 314) Non- Exdusive Easement for parking and ingress/egress to Subject Parcel. Permission to install utilities for and to Subject Parcel. A portion of Tract G of AVENTURA, SECOND ADDITION, according to the plat thereof recorded in Plat Book 99 at Page 21, of the Public Records of Dade County, Florida, more particularly described as follows: Commence at the most Westerly corner of said Tract_G; thence run S 13 °08'55" E, along the most Westerly line of said Tract G, for a distance of 283.22 feet to the point of intersection with a Southerly Tine of said Tract G; thence run N 76 °51'05" E, along a Southerly line of said Tract G, for a distance of 210.00 feet to the Point of Beginning of the herein described parcel; thence continue to run N 76 °51'05" E, along a Southerly line of said Tract G, for a distance of 88.53 feet to the point of intersection with the arc of a circular curve concave to the East, the center of which bears N 84 °30'22" E from said point of intersection; thence run Northerly along the arc of said circular curve concave to the East, having a radius of 509.81 feet, through a central angle of 11°05'05 ", for an arc distance of 98.63 feet to the point of reverse curvature with a circular curve to the left; thence run Northeasterly along the arc of said circular curve to the left, having a radius of 2357.66 feet, through a central angle of 4 °21'09 ", for an arc distance of 179.10 feet to the point of intersection with a line that is 267.50 feet Northerly of an parallel with the aforesaid Southerly line of said Tract G; thence run S 76 °51'05" W, along a line that is 267.50 feet Northerly of and parallel with the aforesaid Southerly line of said Tract G, for a distance of 162.06 feet to the point of intersection with a line that is 210.00 feet Easterly of and parallel with the most Westerly line of said Tract G; thence run S 13°08'55" E, along a line that is 210.00 feet Easterly of and parallel with the most Westerly line of said Tract G, for a distance of 267.50 feet to the Point of Beginning. I "Parcel C" (ORB 9583 PG 314) Permission to install utilities for and to Subject Parcel. Covenant by Miami -Dade County to furnish and maintain landscaping upon. A portion of Tract G of AVENTURA, SECOND ADDITION, according to the plat thereof recorded in Plat Book 99 at Page 21, of the Public Records of Dade County, Florida, more particularly described as follows: Begin at the most Westerly corner of said Tract G, thence run S 13 °08'55" E, along the most Westerly line of said Tract G, for a distance of 35.42 feet, to the point of intersection with the arc of a circular curve concentric with and 35.00 feet Southeasterly of, the Northerly boundary of said Tract G as measured radially, the center of said curve bears S 22 °02'43" E from said point of intersection; thence run Northeasterly, along the arc of said circular curve, having a radius of 3711.72 feet, through a central angle of 2 °38'51 ", for an arc distance of 171.51 feet, to the point of intersection with a line that is 170.00 feet Easterly of and parallel with the most Westerly line of said Tract G; thence run S 13 °08'55" E, along said line that is 170.00 feet Easterly of and parallel with the most Westerly line of said Tract G for a distance of 2.9 feet to the point of intersection with a line that is 267.50 feet Northerly of and parallel with the most Westerly Southerly line of said Tract G; thence run N 76 °51'05" E, along a line that is 267.50 feet Northerly of and parallel with the most Westerly Southerly line of said Tract G, for a distance of 202.06 feet, to the point of intersection with the arc of a circular curve concave to the Northwest, the center of which bears N 88 °43'42" W from said point; thence run Northeasterly, along the arc of said circular curve concave to the Northwest, having a radius of 2357.66 feet, through a central angle of 1 °22'51 ", for an arc distance of 56.82 feet to the point of intersection with the Northerly boundary of said Tract G, said Northerly boundary being a circular curve concave to the Southeast, the center of which bears S 16 °01'57" E from said point of intersection; thence run Southwesterly along the said Northerly boundary of said Tract G, and along the arc of said circular curve concave to the Southeast, having a radius of 3746.72 feet, through a central angle of 5 ° 55'44 ", for an arc distance of 387.71 feet to the Point of Beginning. I "Parcel D" (ORB 9583 PG 314) Non- Exdusiv Easement for ingress /egress to Subject Parcel. Permission to install utilities for and to Subject Parcel. A portion of Tract G of AVENTURA, SECOND ADDITION, according to the plat thereof recorded in Plat Book 99 at Page 21, of the Public Records of Dade County, Florida, more particularly described as follows: Commence at the most Westerly corner of said Tract G; thence run Northeasterly along the Northerly boundary of said Tract G, and along the arc of a circular curve concave to the Southeast the center of which bears S 21 °57'47" E from said corner, having a radius of 3746.72 feet; through a central angle of 5 ° 55'44 ", for an arc distance of 387.71 feet to the point of intersection with the arc of a circular curve concave to the Northwest, the center of which bears S 89 °51'27 "W from said point, said point of intersection also being the Point of Beginning of the herein described parcel of land; thence run Southwesterly, along the arc of said circular curve concave to the Northwest, having a radius of 2357.66 feet, through a central angle of 5°44'00 ", for an arc distance of 235.92 feet to a point of reverse curvature with a circle curve to the left; 'thence run Southwesterly along the arc of said circular curve to the left, having a radius of 509.81 feet, through a central angle of 11 °05'05" for an arc distance of 98.63 feet, to the point of intersection with the most Westerly Southerly line of said Tract G; thence run N 76 ° 51'05" E,. along the most Westerly Southerly line of said Tract G, for a distance of 44.32 feet to the poidt of intersection with the most Southerly Westerly boundary of said Tract G, said Westerly boundary being the arc of a circular curve, the center of which bears N81 °39'40" E from said point of intersection; thence run Northeasterly along the Northeasterly prolongation of the most Southerly Westerly boundary of said TractG and along the arc of said circular curve, having a radius of 810.00 feet, through a central angle of 17 °32'34 ", for an arc distance of 248.00 feet to the point of reverse curvature with the arc of a circular curve to the left; thence run Northeasterly along the arc of said circular curve to the left, having a radius of 414.45 feet, trough a central angle of 12 °10'45" for an arc distance of 88.06 feet, to the point of intersection with the Northerly boundary of said Tract G, said Northerly boundary being a circular curve concave to the Southeast, the center of which bears S 15 °25'15" E from said point of intersection; thence run Southwesterly along tle said Northerly boundary of said Tract G, and along the arc of said circular curve concave to the Southeast, having a radius of 3746.72 feet, through a central agle of 0 °36'42" for an arc distance of 40.00 feet to the Point of Beginning. Together with, A Reservation, in common with others, "...for access to service drive on west side of..." to,from, and for the Subject Parcel. Exhibit #3 01- VAR -11 EXT RESOLUTION NO. 2010-28 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA GRANTING APPROVAL OF VARIANCE FROM SECTION 31- 171(b)(6) OF THE CITY'S LAND DEVELOPMENT REGULATIONS TO ALLOW FORTY -ONE (41) PARKING SPACES, WHERE A MINIMUM OF SEVENTY -NINE (79) PARKING SPACES ARE REQUIRED BY CODE FOR THE MIAMI -DADE COUNTY PUBLIC LIBRARY LOCATED AT 2930 AVENTURA BOULEVARD, CITY OF AVENTURA; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the property described herein is zoned CF, Community Facilities District; and WHEREAS, the applicant, Miami -Dade County Public Library, through Application No. 02- VAR -10, is requesting variance from Section 31- 171(b)(6) of the City's Land Development Regulations to allow forty -one (41) parking spaces, where a minimum of seventy -nine (79) parking spaces are required by Code; and WHEREAS, following proper notice, the City Commission has held a public hearing as provided by law; and WHEREAS, the City Commission finds that the Application meets the criteria of the applicable codes and ordinances, to the extent the Application is granted herein. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, THAT: Section 1. Application for variance from Section 31- 171(b)(6) of the City's Land Development Regulations to allow forty -one (41) parking spaces, where a minimum of seventy -nine (79) parking spaces is required by Code on property legally described as follows: Part Tract G, Aventura Second Addition, according to the plat thereof recorded in Plat Book 99, Page 21, of the Public Records of Miami -Dade County, Florida, City of Aventura, more particularly described in Exhibit "A" is hereby granted, subject to the following conditions: 1. Plans shall substantially comply with those submitted as follows: • Boundary Survey, Northeast Branch Library, prepared by Woolpert, Inc., dated June 30, 2009, consisting of Pages 1 and 2, signed and sealed. • "Northeast Branch Library, New Library, 2930 Aventura Boulevard ", Cover Sheet, Sheet No. G0.01, prepared by Miami -Dade County General Services Administration, dated 4/20/10, signed and sealed 4/20/10. Exhibit #4 01- VAR -11 EXT Resolution No. 2010 -28 Page 2 • "Northeast Branch Library, New Library, 2930 Aventura Boulevard ", Exterior & Interior Renderings, Sheet No. G0.02, prepared by Miami -Dade County General Services Administration, dated 4/20/10, signed and sealed 4/20/10. • "Northeast Branch Library, New Library, 2930 Aventura Boulevard", Site Plan, Sheet No. A1.01, prepared by Miami -Dade County General Services Administration, dated 4/20/10, signed and sealed 4/20/10. • "Northeast Branch Library, New Library, 2930 Aventura Boulevard ", Exterior Elevations, Sheet No. A3.01, prepared by Miami -Dade County General Services Administration, dated 4/20/10, signed and sealed 4/20/10. • "Northeast Branch Library, New Library, 2930 Aventura Boulevard ", Exterior Elevations, Sheet No. A3.02, prepared by Miami -Dade County General Services Administration, dated 4/20/10, signed and sealed 4/20/10. • "Northeast Branch Library, New Library, 2930 Aventura Boulevard ", Landscape Plan, Sheet L2.01, prepared by Miami -Dade County General Services Administration, dated 4/20/10, signed and sealed 4/20/10. • "Northeast Branch Library, New Library, 2930 Aventura Boulevard ", Vicinity Map, prepared by Miami -Dade County General Services Administration, dated 4/20/10, signed and sealed 4/20/10. 2. Permits shall be obtained within twelve (12) months of the date of the Resolution or the approvals granted shall be deemed null and void unless extended by a motion of the City Commission. 3. Prior to issuance of a building permit, the applicant shall record this resolution in the Public Records of Miami -Dade County. All expenses of such recordation shall be borne by the applicant. Section 2. The City Manager is authorized to cause the issuance of permits in accordance with the approvals and conditions herein provided and to indicate such approvals and conditions upon the records of the City. Section 3. This Resolution shall become effective immediately upon its adoption. The foregoing Resolution was offered by Commissioner Stern, who moved its adoption. The motion was seconded by Commissioner Auerbach, and upon being put to a vote, the vote was as follows: Commissioner Zev Auerbach yes Commissioner Bob Diamond yes Commissioner Teri Holzberg yes Commissioner Billy Joel yes Commissioner Michael Stem yes Vice Mayor Luz Urbaez Weinberg yes Mayor Susan Gottlieb yes Resolution No. 2010- 2.8 Page 3 PASSED AND ADOPTED this 4 day of May, 2010. USAN GOTTL B, MAYOR A , EST: J _ 1 94 •. ►��w RESA M. ' ' , M TY CLERK • APPROVED AS TO AL SUFFI IE CY: CITY ATTO NEY W� T is R olution w - filed in the Office of the City Clerk this �O' 'day of May, 2010. •ITY CLE �— Exhibit "A" LEGAL DESCRIPTION: Tax Folio 8 28- 2203 -025-0050 Subject Parcel (ORB 9577 PG 1701) Fee Simple a/k/a "Parcel A" (ORB 9583 PG 314) A portion of Tract G of AVENTURA. SECOND ADDITION, according to the plat thereof recorded in Plat Book 99 at Page 21. of the Public Records of Dade County, Forida, more particularly described as follows: Commence at the most Westerly corner of said Tract G; thence run S 13•08'55" E, eking the most Westerly fine of said Tract G, for a distance of 35.42 feet to the point point o f intersection being tee arc of circular curve concentric with and 35.00 feet Southeasterly of the Northerly boundary of said Tract G as measured radially, said Beginning of the herein described Ducal; thence continue to run S 13.0955" E, *Sorg the most Westerly line of said Tract G, for a distance of 247.80 feet to a point an a Southerly boundary of said Tract G; thence run N 76.51 E, along a Southerly boundary of said Text G, for a distance of 210.00 feet; thence nos N 13°0955" W, parallel with the most Westerly line of said Tract G, for a distance of 267.50 het; thence nut S 76°5105" W, parallel with the most Westerly Soottwy line of said Tract G, for a distance of 40.00 feet; thence run N 13 W. parallel with the most Westerly tine of said Tract G, for a distance of 2.90 feet to the poet of intersection with the arc of a dreular curve concentric with and located 35.00 het South of the Northerly boundary of said Tract G as measured radially the center of said curve bears 5 19 E from said point of intersection; thence run Southwesterly along the arc of said circular carve concentric with the Northerly boundary of said Tract G, having a radius of 3711.72 feet, through a central angle of 2•38'51" for an arc distance of 171.51 feet to the Point of Beginning. Ateurlenant Interests of Subject Parch (3 Parable) "Parcel 8" (ORB 9583 PG 314) Nen- Exclusive Easement for parking and ingress/egress to Subject Parcel. Permission to install utilities for and to Subject Parcel. A portion of Tract G of AVENTURA, SECOND ADDITION, according to the peat thereof recorded in Plat Book 99 at Page 21. of the Public Records of Dade County. Florida, more particularly described as follows: Commence at the most Westerly corner of said Tract„G; thence run 5 13.08'55" E, along the most Westerly fee of said Tract G, fora distance of 283.22 feet to the point of intersection with a Southerly One of saidTract G; thence min N 76 °51'05" E, along a Southerly line of said Tract G, for a distance of 210.00 feet to the Point or !moaning or the hereto described parcel; thence continue to run N 76•51•5' E, along a Southerly line of said Tract G, bra distance of 88.53 feet to the point of intersection with the arc of a circular carve concave to the East, the center of which beers /484•3022 E from said poet of Intersection; thane run Northerly along the arc of said trader curve concave to the East, having a radius of 509.81 feet, through a antral angle of I I for an arc distance of 98.63 feet to.the prat of reverse curvature with a circular curve to -the ref; thence ran Northeasterly alang the arc of said circular curve to the left, bevies a radius of 2357.66 feet, through a central angle of 4°21'09", for an arc distance d 179.10 het to the point of intersection with a line that is 267.50 feet Northerly of an parallel with the aforesaid Southerly line of said Tract G; thence run 5 76•5105" W, along a line that is 267.50 feat Norther* et and parallel with the aforesaid Southerly Nee of said Tract G, for a distance of 162.06 feet to the point of intersection with a One that is 210.00 Met Easterly of and parallel with the most Wessorly b s of said Tract G; thence nn S 13"08 E. along a line that is 210.00 feet EastMy of and parallel with the most Wester', lone of said Tract G, for distance of 267.50 het to the Point of Beginning. "Parcel C' (ORB 9583 PG 314) Permission to install utilities for and to Subject Parcel.. Covenant by Miami -Dealt County to furnish and maintain landscaping upon. A' portion of Tract G of AVENTURA, SECOND ADDITION, acceding to the plat thereof recorded in Rat Book 99 at Page 21. W the Public Records of Dade Canty, Florida, more particularly described as follows: Begin at the most Westerly corner of said Tract G, thence run S 13.08'55" E, along the most Westerly line of said Tract G, bra distance of 35.42 fat, to the point of intersection with the arc of a circular curve concentric with and 35.00 feet Southeasterly o/. the Northerly boundary et said Tract G as measured radially, the center of said curve bears 5 22.02 E bon said point of intersection; thence run Northesevly, along the arc of said circular curve, having a radius of 3711.72 feet, through a central angle d 2.38'51", for an arc distance c f 171.51 feet lo the point of intwseaion 01111 a lye that is 170.00 feet Easterly of and parallel with the most Westerly line of said Tract G; thence run S 13.08'55" E. along said Nee that is 170.00 feet of and parallel with On most Westerly hie of said t G for a distance of 2.9 feet to the 6; point of intersection with a One that is 267.50 het Northerly d and psp8el with the most Westerly Southerly line o/ said Tract G; thence nn N 76 E, alo o a Tine that is 267.50 bet Northerly of and parallel with the most Westerly Southerly line of said Tract G, bra distance of 202.06 feet, to the point of interseclbon with the arc of a circular curve concave to to Northwest, the center of which boars N 88•43'42"' W Mon said point; thence run Northeasterly, ebong the arc d said circular curve concave to the Northwest, having a radio of 2357.66 het, through a central angle of 1.22'51 ", for an arc distance of 56.82 feet to the point of intersection wits the Northerly boundary of said Tract G, said Npt,wty boundary being a circular pave concave to the Southeast, the center of which bears 5 16°01'57" E from said point of Itersertmn; thence maSoutlwesterly alang to said Northerly boundary (*said Tract G, and along the arc of said circular curve concave to the Southeast, having a radius of 3746.72 feet, enough a central angle of 5•55•44 ", for an arc distance of 387.71 feet to the Poem of Beginning. - *Parcel(/' (OR8 9583 PG 314) Now- E:dseiw Eweswrmlt for ingress/egress f Subject Parcel. Parwuissien 10 install utilities for and to Subject Parcel. Florida, - portion oft r G 1 AVENTURA described SECOND OND ADD , according b the Mat thereof recorded in Plat Book 99 at Page 21, of to Public Records of Dade County, Commence at the most Westerly corner of said Tract 6; thence run Northeasterly along the Northerly boundary of said Tract G, and along the a� c of • circular curve concave to the Southeast the center of whidi bears 5 21°57'47' E loom said canner, having *radius of 3746.72 het; through a central angle of 5•5544 ", for an arc distance of 387.71 lour to to point of intersection with the arc of a circular curve concave to the Northwest, the center of wNdr bears 5 89•51•27"W boo said point, said point of intersection also being the Point of Beginning of the herein described panel of had; thence nun Southwesterly, along toe arc of said circular curve concave to to Northwest, est, having a radius of 2357.66 feet,. trough a antral angle of 5'44'00 ", for an arc distance of 235.92 feet to as point of reverse curvature with a circle curve to the left - thence nun Southwesterly along the arc of said cituhr curve to the left, having a radio. of 50911 feet, avouch a central angle of 11 for an arc distance of 98.63 feet, tote poet of intersection with the mod Westerly Southerly line of said Tract G; thence nn N 76•5105" E, along the most Westerly Southerly line of said Tract G, fora distance of 44.32 feet to the pout of intersection with the most Sorthery Westerly boundary of said Tract G, acid Westerly boundary being the arc of a circular curve, the corer of which bears R81•39'40" E bum said point of intersection; thence run Northeasterly along the Northeasterly prolongation of the most Southerly Westerly boundary of said TnxsG and along the arc of said circular curve, having a radius of 810.00 feet, through a central angle of 17•32'34 ", for an arc distance of 248.00 fest to the point of reverse curvature with the arc of a circular pave to the let thence run Northeasterly along the arc et said circular cove to the left, having a radius of 414.45 feet. gnough a central angle of 12 °10'45" for an arc distance or 88.06 fan, to the point of intersection with the Northerly boundary of said Tract G, said Northerly bowery behg a decider curve concave hi the Shedielitt. the canter of which bears S 15 •2515" E from said point of intersect ion; thence run Sou ttavestergr along to said Northerly boundary of said Tract G. and along the arc of said circular curve concave to the Southeast, having a radius of 3746.72 feet, through a central * of 0•36'42" for an arc distance of 40.00 feet to the Point of Beginning. - Together with, A Reservation, in common with others, " -..for access to service drive on west side of..." tofroni, and for the Subject Pa • CITY OF AVENTURA FINANCE DEPARTMENT MEMORANDUM TO: City Commission FROM: Eric M. Soroka, ICMA -CM, City Manager c7 BY: Brian K. Raducci, Finance Director DATE: March 10, 2011 SUBJECT: Mid -Year Ordinance Amending 2010/11 Budget 1 St Read April 5, 2011 City Commission Meeting Agenda Item TA 2 "d Reading April 14, 2011 City Commission Meeting Agenda Item RECOMMENDATION It is recommended that the City Commission approve the attached Ordinance amending the 2010/11 budget. The total amount of each fund's budget amendment is outlined below. BACKGROUND As you are aware, the City normally amends the budget to recognize actual fund balance amounts carried over based on the prior year's audit. In addition, budget amounts are amended to re- appropriate the balances in capital outlay projects which were not 100% complete by the end of the prior fiscal year. The need to re- appropriate unspent capital accounts and to recognize the actual fund balances at September 30, 2010 to the 2010/11 budget was also discussed in my memorandum dated March 10 which was distributed to the Commission along with the Comprehensive Annual Financial Report. GENERAL FUND (001) REVENUES /EXPENDITURES — $849,229 To recognize additional Carryover to fund the two (2) items described below. 1. To re- appropriate $864,764 worth of capital outlay projects which were not 100% complete by the end of the prior fiscal year (e.g., computer equipment and other equipment — $344,000, radio replacements — $235,764, transportation system improvements — $285,000). 1 2. To decrease Non Departmental/Transfers by $15,535 in order to recognize actual fund balances as explained under the two- related debt service funds, (found at the end of this memorandum), based on the prior year's audit. POLICE EDUCATION FUND (110) REVENUES /EXPENDITURES — $11,310 To recognize and re- appropriate the actual fund balance amount carried over based on the prior year's audit. STREET MAINTENANCE FUND (120) REVENUES /EXPENDITURES — $2,968 To recognize and re- appropriate the actual fund balance amount carried over based on the prior year's audit. POLICE CAPITAL OUTLAY IMPACT FEE FUND (140) REVENUES /EXPENDITURES — $220 To recognize and re- appropriate the actual fund balance amount carried over based on the prior year's audit. PARK DEVELOPMENT FUND (170) REVENUES /EXPENDITURES — $2,246 To recognize and re- appropriate the actual fund balance amount carried over based on the prior year's audit. 911 FUND (180) REVENUES /EXPENDITURES — ($44,996) To recognize a reduction in Carryover of $44,996 based on the prior year's audit as it relates to the following two (2) items. 1. To reduce the R &M — Equipment by $4,996. 2. To reduce the Capital Reserve by $40,000 DEBT SERVICE FUND SERIES 1999 (230) REVENUES — $0 (Revenue Reclassification of $15,526 — Net effect is $0) To recognize and re- appropriate the actual fund balance amount carried over based on the prior year's audit and to reduce the transfer from the General Fund, respectively by $15,526 for a net effect of $0. 2 DEBT SERVICE FUND SERIES 2002 (250) REVENUES — $0 (Revenue Reclassification of $9 — Net effect is $0) To recognize and re- appropriate the actual fund balance amount carried over based on the prior year's audit and to reduce the transfer from the General Fund, respectively by $9 fora net effect of $0. If you should have any questions related to this memorandum, please feel free to contact the City Manager. BKR/bkr 3 Exhibit A FY 2010/11 Budget Amendments GENERAL FUND (001) 2010111 2010/11 2010111 08JECT ADOPTED OED < REVISED CODE CATEGORY BUDGET ' AMOUNT BUDGET Revenues Non - Revenue 3999000 Carryover 16,075,627 849,229 16,924,856 SUBTOTAL 16,075,627 849,229 16,924,856 Total Amendments - Revenues 849,229 Expenditures Capital Outlay /information Technology (8012 -513) 6401 Computer Equipment >$5,000 90,000 238,000 328,000 SUBTOTAL 90,000 238,000 328,000 Capital Outlay /Public Safety (8020 -521) 6401 Computer Equipment >$5,000 - 10,000 10,000 6402 Computer Equipment <$5,000 188,000 52,000 240,000 6407 Radio Purchase & Replace. 86,000 235,764 321,764 SUBTOTAL 274,000 297,764 571,764 Capital Outlay /Community Development (8040 -524) 6401 Computer Equipment >$5,000 - 44,000 44,000 SUBTOTAL - 44,000 44,000 Capital OutlavlCommunity Services (8050- 539/541) 6341 Transportation System Improvements - 285,000 285,000 SUBTOTAL - 285,000 285,000 Non DepartmentallTransfers (9001 -581) 9123 Transfer to 1999 Debt Service Fund (230) 1,364,988 (15,526) 1,349,462 9125 Transfer to 2002 Debt Service Fund (250) 403,718 (9) 403,709 SUBTOTAL 1,768,706 (15,535) 1,753,171 Total Amendments - Expenditures 849,229 Page 1 of 4 Exhibit A POLICE EDUCATION FUND (110) 2010111 2010/11 2010111 tJCT ADOPTED `' AMENDED REVISED CO CAT ORY BUDGET AMOUNT SET Revenues Non - Revenue 3999000 Carryover - 11,310 11,310 SUBTOTAL - 11,310 11,310 Total Amendments - Revenues 11,310 Expenditures Public Safety (2001 -521) 5450 Training 7,000 11,310 18,310 SUBTOTAL 7,000 11,310 18,310 Total Amendments - Expenditures 11,310 TRANSPORTATION AND STREET MAINTENANCE FUND (120) 2010111 2010/11 2010/11 OBJECT ADOPTED AMENDED REVISED cot* CATEGORY BUDGET AMOUNT B ET Revenues Non - Revenue 3999000 Carryover - 2,968 2,968 SUBTOTAL - 2,968 2,968 Total Amendments - Revenues 2,968 Expenditures Community Services (5001 -541) 6999 Capital Reserve - 2,968 2,968 SUBTOTAL - 2,968 2,968 Total Amendments - Expenditures 2,968 POLICE CAPITAL OUTLAY IMPACT FEE FUND (140) 2010111 201 011 1 2010111 OBJECCT ADOPTED AMENDED REVISED CODE CATEGORY BUDGET AMOUNT BUDGET Revenues Non - Revenue 3999000 Carryover 16,337 220 16,557 SUBTOTAL 16,337 220 16,557 Total Amendments - Revenues 220 Expenditures Non Departmental (9001 -590) 6999 Capital Reserve 16,337 220 16,557 SUBTOTAL 16,337 220 16,557 Total Amendments - Expenditures 220 Page 2 of 4 Exhibit A PARK DEVELOPMENT FUND (170) 2010111 2010/11 .2010/11 OCT ADOPTED AMENDED REVISED CATE Y :! ,#D I' lkifl BUDGE`C Revenues Non - Revenue 3999000 Carryover - 2,246 2,246 SUBTOTAL - 2,246 2,246 Total Amendments - Revenues 2,246 Expenditures Non Departmental/Transfers 15001 -5721 6999 Capital Reserve - 2,246 2,246 SUBTOTAL - 2,246 2,246 Total Amendments - Expenditures 2,246 911 FUND (180) 2010111 2010/11 2010/11 OBJECT Awrito AMENDED REVISED Cope . CATEGORY BUDGET AMOUNT BUDGET Revenues Non- Revenue 3999000 Carryover 100,000 (44,996) 55,004 SUBTOTAL 100,000 (44,996) 55,004 Total Amendments - Revenues (44,996) Expenditures OTHER CHARGES & SERVICES 4645 R &M - Equipment 60,000 (4,996) 55,004 SUBTOTAL 60,000 (4,996) 55,004 Public Safety (2001 -5211 6999 Capital Reserve 40,000 (40,000) - SUBTOTAL 40,000 (40,000) - Total Amendments - Expenditures (44,996) Page 3 of 4 Exhibit A DEBT SERVICE FUND SERIES 1999 (230) 2010/11 2010/11 2010/11 OBJECT . ' ADOPTED AMENDED RASE© C CATE BUDGET AMOUNT BUDGET Revenues Non - Revenue 3811001 Transfer from General Fund 1,364,988 (15,526) 1,349,462 3999000 Carryover - 15,526 15,526 SUBTOTAL 1,364,988 - 1,364,988 Total Amendments - Revenues - DEBT SERVICE FUND SERIES 2002 CHARTER SCHOOL LAND ACQUISITION (250) 2010/11 2010111 . 2010/11 OBJECT A OP'l'ED AMEN REVISED woe ; ; 'CATEGORY BUDGET AM BUS Revenues Non- Revenue 3811001 Transfer from General Fund 403,718 (9) 403,709 3999000 Carryover - 9 9 SUBTOTAL 403,718 - 403,718 Total Amendments - Revenues - Page 4 of 4 ORDINANCE NO. 2011 - AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, AMENDING ORDINANCE NO. 2010 -10 WHICH ORDINANCE ADOPTED A BUDGET FOR THE 2010/2011 FISCAL YEAR BY REVISING THE 2010/2011 FISCAL YEAR OPERATING AND CAPITAL BUDGET AS OUTLINED IN EXHIBIT "A" ATTACHED HERETO; AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO CARRY OUT THE AIMS OF THIS ORDINANCE; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, upon the periodic review and analysis of current budgetary commitments and obligations, and based upon the projected needs and requirements of the City and upon the recommendations of the City Manager (and the concurrence of the Finance Director as to Accounting Principles), it is deemed necessary to adjust, amend and implement the 2010/2011 Operating and Capital Budget as set forth in Exhibit "A" attached hereto and made a part hereof. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, AS FOLLOWS: Section 1. The recitals contained in the preamble to this Ordinance are incorporated by reference herein. Section 2. The City Commission hereby authorizes the amendment of Ordinance No. 2010 -10, which Ordinance adopted a budget for the 2010/2011 fiscal year, by revising the 2010/2011 budget as set forth on the attached Exhibit "A" which exhibits are deemed incorporated by reference as though set forth in full herein. Section 3. The City Manager is hereby authorized to do all things necessary to carry out the aims of this Ordinance. Ordinance No. 2011 -_ Page 2 Section 4. Effective Date. This Ordinance shall be effective immediately upon adoption on second reading and shall be applicable retroactively from and after October 1, 2010. The foregoing Ordinance was offered by Commissioner , who moved its adoption on first reading. This motion was seconded by Commissioner and upon being put to a vote, the vote was as follows: Commissioner Zev Auerbach Commissioner Teri Holzberg Commissioner Billy Joel Commissioner Michael Stern Commissioner Luz Urbaez Weinberg Vice Mayor Bob Diamond Mayor Susan Gottlieb The foregoing Ordinance was offered by Commissioner , who moved its adoption on second reading. This motion was seconded by Commissioner and upon being put to a vote, the vote was as follows: Commissioner Zev Auerbach Commissioner Teri Holzberg Commissioner Billy Joel Commissioner Michael Stern Commissioner Luz Urbaez Weinberg Vice Mayor Bob Diamond Mayor Susan Gottlieb PASSED AND ADOPTED on first reading this 5 day of April, 2011. 2 Ordinance No. 2011 -_ Page 3 PASSED AND ADOPTED on second reading this 14 day of April, 2011. SUSAN GOTTLIEB, MAYOR TERESA M. SOROKA, MMC CITY CLERK APPROVED AS TO LEGAL SUFFICIENCY: CITY ATTORNEY 3 CITY OF AVENTURA OFFICE OF THE CITY MANAGER MEMORANDUM TO: City Commission FROM: Eric M. Soroka, ICMA -CM, City ■ . ag: r DATE: March 25, 2011 SUBJECT: Ordinance Amending Arts & Cultur. enter Advisory Board Ordinance 1 Reading April 5, 2011 City Commission Meeting Agenda Item 7A 2 " Reading April 14, 2011 City Commission Meeting Agenda Item RECOMMENDATION It is recommended that the City Commission adopt the attached amendment to the original Ordinance that established the Arts & Cultural Center Advisory Board. BACKGROUND As discussed at the March Workshop Meeting, the original two year appointment of the Arts & Cultural Center Advisory Board expired in March. Based on the two years of experience since the Board was created, it was recommended that the attached Ordinance which, includes several housekeeping measures that define the role and mission of the Board and stresses the need to make every effort for the membership to be representative of all age groups, be considered by the City Commission. If you have any questions, please feel free to contact me. EMS /act Attachment CC01735 -11 ORDINANCE NO. 2011 - AN ORDINANCE OF THE CITY OF AVENTURA, FLORIDA, AMENDING DIVISION 5 "ARTS AND CULTURAL CENTER ADVISORY BOARD" OF ARTICLE III "ADVISORY BOARDS" OF CHAPTER 2 "ADMINISTRATION" OF THE CITY CODE BY AMENDING SECTION 2 -191 "CREATION, COMPOSITION AND QUALIFICATIONS," SECTION 2 -192 "APPOINTMENT OF BOARD MEMBERS PROCESS ", SECTION 2 -193 "ADVISORY CAPACITY ", SECTION 2 -194 "RULES OF PROCEDURE; QUORUM ", AND SECTION 2 -195 "MISSION; JURISDICTION AND DUTIES "; PROVIDING FOR SEVERABILITY; PROVIDING FOR INCLUSION IN CODE; PROVIDING FOR EFFECTIVE DATE. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF AVENTURA, AS FOLLOWS: Section 1: Section 2 -191 of the City Code is hereby amended as follows: Sec. 2 -191. Creation, composition and qualifications. A. There is hereby created and established the City of Aventura Arts and Cultural Center Advisory Board (the "Board ") consisting of a minimum of seven (7) and a maximum of nine (9) members who shall be appointed by the Mayor, subject to the approval of the City Commission. Five (5) members of the Board shall be residents of the City and the four (4) remaining members may be from within or outside the City limits. Members of the Board shall be appointed in accordance with procedures established herein and shall hold office at the pleasure of the City Commission. Members of the Board shall ' ' Underlined text has been added; struck through text has been deleted from existing language. Ordinance No. 2011 -_ Page 2 serve without compensation and shall not be reimbursed for travel, mileage, or per diem expenses. Members shall serve for a two year term and may be reappointed in accordance with the process outlined herein. B. (i) Each one of the five (5) resident members of the Board shall be a qualified elector of the City of Aventura who has continuously resided within the City for the six -month period immediately prior to the appointment, and shall not be an employee of the City. Any member of the Board who ceases to reside within the City, and has been selected as a resident appointment shall be deemed to have resigned as of the date of his or her change of residence. (ii) The remaining four (4) members shall be selected without preference to residence, but shall have resided at their residence for a continuous period of six months immediately prior to appointment. (iii) In the event of the resignation or removal of any member of the Board, the Mayor shall appoint a person to fill the vacancy on such Board for the unexpired portion of the term of the member vacating such office, subject to approval of 2 Ordinance No. 2011 -_ Page 3 the City Commission in accordance with procedures established herein. C. In the event that a member of the Board shall be absent and unexcused from a duly - called meeting of the Board for three consecutive meetings, then in that event such member shall automatically be removed as a member of the Board by the City Manager. An excused absence shall be requested in writing via email, fax or letter prior to the Board meeting. D. The City Manager or his designee shall provide necessary staff support for the Board. Sec. 2 -192. Appointment of Board Members Process. A. Individuals wishing to be a member of the Arts and Cultural Center Advisory Board shall make application to the City Manager on the forms provided by the City. The City Manager shall interview all applicants and make recommendation to the Mayor. The Mayor shall appoint to the Board members from the list of applicants recommended by the City Manager, subject to the approval of the City Commission. B. In recommending members of the Board, the following guidelines shall be considered: Q1 The membership of this Board should be representative of the broad spectrum of the arts and have specific experience 3 Ordinance No. 2011 -_ Page 4 and a strong commitment to performing arts including music, dance, the dramatic arts, the visual arts and the cultural arts. (ii) All efforts should be made for the membership of this Board to be representative of all age groups. Sec. 2 -193. Advisory capacity. The powers and duties of the Board shall be solely of an advisory nature to the City Manager and Arts & Cultural Center Director General Manager. The City Manager shall be responsible for communicating to the City Commission the actions of the Board. Sec. 2 -194. Rules of procedure; Quorum A. The Board shall adopt rules of procedure not inconsistent with the ordinances of the City and the laws of the State of Florida and shall utilize Robert's Rules of Order recently revised 1990 Edition for the rules of procedure for the conduct of meetings of the Board. The Board may create additional rules for the conduct of its internal proceedings. B. During the first meeting of the Board and annually thereafter, the members shall elect one of their members to act as Chairperson and may elect a Vice- Chairperson, both of whom shall serve for one -year and may be re- elected. C. Five members shall constitute a quorum for the transaction of business of the Board. Official action shall be taken by the Board only upon the 4 Ordinance No. 2011 -_ Page 5 concurring vote of a majority of the members present at an official meeting of the Board, except that at least five (5) affirmative votes shall be required for official action. Sec. 2 -195. Mission; Jurisdiction and Duties. A. The Mission of the Board is to assist the City in maintaining a facility that offers a wide range of quality entertainment year -round and cultivates partnerships with other local and regional organizations to enhance the quality of life for Aventura by providing a variety of performing arts and relevant cultural programming for audiences of all ages. B. The jurisdiction of the Board shall be solely advisory. Action of the Board shall be in the form of a written recommendation of advice to the City Manager and /or Arts & Cultural Center Director General Manager. The following matters shall be within the advisory jurisdiction of the Board: (1) Promote the mission of the Arts & Cultural Center and broad spectrum of performing arts. (2) P• - -- - -- - --e •- A- = -- - - --• - - --e.••• -- -- • - -- - •- A- - -- - - -• - •-- - . Provide input on programming options as requested by the Citv Manager and Arts & Cultural Center General Manager. Final programming decisions shall rest with the Arts & Cultural Center Director General Manager. 5 Ordinance No. 2011 -_ Page 6 (3) Recommend fundraising and sponsorship opportunities and assist with the implementation of same to support the Center's operations and programming. The Board may accept donations on behalf of the Center in a manner as approved by the City Manager. (4) Review polices and regulations that have been recommended as requested by the City Manager and Arts & Cultural Center Director General Manager as it relates to the Arts & Cultural Center. (5) Assist in the promotion of the Arts & Cultural Center programs and assist in organizing the annual "Curtains Up" event. C. The Board shall meet quarterly or more frequently as determined by the City Manager. Section 2. Section 2. Conflicts. All Ordinances or parts of Ordinances and all Resolutions or parts of Resolutions in conflict herewith are repealed to the extent of such conflict. Section 3. Severability. The provisions of this Ordinance are declared to be severable and if any section, sentence, clause or phrase of this Ordinance shall for any reason be held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining sections, sentences, clauses, and phrases of this Ordinance but they shall remain in effect, it being the legislative intent that this Ordinance shall stand notwithstanding the invalidity of any part. 6 Ordinance No. 2011 -_ Page 7 Section 4. Effective Date. This Ordinance shall be effective immediately upon adoption on second reading. The foregoing Ordinance was offered by Commissioner , who moved its adoption on first reading. The motion was seconded by Commissioner and, upon being put to a vote, the vote was as follows: Commissioner Zev Auerbach Commissioner Teri Holzberg Commissioner Billy Joel Commissioner Michael Stern Commissioner Luz Urbaez Weinberg Vice Mayor Bob Diamond Mayor Susan Gottlieb The foregoing Ordinance was offered by Commissioner , who moved its adoption on second reading. This motion was seconded by Commissioner , and upon being put to a vote, the vote was as follows: Commissioner Zev Auerbach Commissioner Teri Holzberg Commissioner Billy Joel Commissioner Michael Stern Commissioner Luz Urbaez Weinberg Vice Mayor Bob Diamond Mayor Susan Gottlieb PASSED AND ADOPTED on first reading this 5 th day of April, 2011. 7 Ordinance No. 2011 -_ Page 8 PASSED AND ADOPTED on second reading this 14 day of April, 2011. SUSAN GOTTLIEB, MAYOR TERESA M. SOROKA, MMC CITY CLERK APPROVED AS TO LEGAL SUFFICIENCY: CITY ATTORNEY 8 CITY OF AVENTURA FINANCE DEPARTMENT MEMORANDUM TO: City Commission FROM: Eric M. Soroka, ICMA -CM, City anager BY: Brian K. Raducci, Finance Director DATE: February 7, 2011 SUBJECT: Amending Ordinance that Amends the Provisions of the Police Officers' Retirement Plan to Comply with the Internal Revenue Code 1 Reading March 1, 2011 City Commission Meeting Agenda Item 7 2 " Reading April 5, 2011 City Commission Meeting Agenda Item 5 RECOMMENDATION It is recommended that the City Commission approve the attached Amending Ordinance that Amends the Provisions of the Police Officers' Retirement Plan to Comply with Recent Changes to the Internal Revenue Code. BACKGROUND Recently there have been changes to federal laws and regulations that require various amendments be made to the City of Aventura Police Officers' Retirement Plan (the "Plan ") in order for it to maintain its status as a qualified plan under Section 401(a) of the Internal Revenue Code. These revisions to the text are consistent with the standard IRS language as of the most recent Code amendments. In simple terms, this change is a technical amendment to meet changing IRS requirements for dollar limits on the salary which may be counted toward pension; the maximum amount of pension permissible; and requires distributions to begin by a date certain. The attached Amended Ordinance had been originally prepared by the law firm of Sugarman and Susskind (attorneys representing the Police Pension Board — see their cover letter "Exhibit A "). They have incorporated the mandated changes in the proposed ordinance amendment. The Police Pension Board has recommended the approval of the changes. In addition, the proposed changes were independently reviewed by both the law firm of Klausner & Kaufman, P.A. and the City Attorney's Office. The City Attorney made minor 1 modifications to the ordinance so that it conformed to the format the City typically uses for ordinances. It is both, Klausner & Kaufman, P.A. and the City Attorney's collective opinion that the ordinance has effectively been drafted to comply with the recent to the Internal Revenue Code. In addition, the Police Pension Plan's actuary has issued a memorandum "Exhibit B" that stated the adoption of the Ordinance will have no impact on the assumptions used in determining the funding requirements of the program." If you should have any questions related to this memorandum, please feel free to contact the City Manager. BKR /bkr 2 Exhibit A SUGARMAN & SUSSKIND PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW Robert A. Sugarman* 100 Miracle Mile Howard S. Susskind Suite 300 Kenneth R. Harrison, Sr. Coral Gables, Florida 33134 D. Marcus Braswell, Jr. (305) 529 -2801 Pedro A. Herrera Broward (954) 327 -2878 Noah Scott Warman Toll Free 1- 800 - 329 -2122 Ivelisse Berio LeBeau Facsimile (305) 447 -8115 *Board Certified Labor & Employment Lawyer MEMORANDUM To: City of Aventura Police Officers' Retirement Plan From: Robert A. Sugarman Date: February 3, 2011 Re: IRS Compliance Ordinance Amendment The Internal Revenue Service enforces the compliance of pension plans with the qualification requirements of Section 401 of the Internal Revenue Code. The benefits of satisfying the qualification requirements are manifold: the income of the plan are not subject to taxation; the employee does not pay income tax on his /her interest in the plan until such time as the employee begins to receive benefits thereunder. Governmental plans are subject to many of the qualification requirements under Section 401(a). The IRS has implemented 5 -year cycles for its compliance monitoring. Every five years, governmental plans are permitted to submit an application for a favorable determination letter, i.e., a letter from the Internal Revenue Service stating that the plan meets all of the qualification requirements. In processing each application, the IRS will ensure that the plan has complied with all qualification requirements that have entered into effect during the relevant 5 -year period. Regardless of whether a plan applies for a favorable determination letter, it must, if it intends to benefit from the advantages of qualification under 401(a) of the Code, make all amendments to its plan document that are required from time -to -time by changes in the law. Memorandum In re: IRS Compliance Ordinance Amendment February 3, 2011 Page 2 The proposed amendment to the Code of Ordinances of the City of Aventura is intended to ensure that the pension plan remain in compliance with all current qualification requirements, including the limitation of pension amounts under Section 415 of the Code; required distribution rules under Section 401(a)(9); the expansion of choices for the rolling -over of pension distributions, and other qualification requirements. These are technical amendments that will not increase or decreases the benefits payable by the plan. We look forward to responding to any additional questions that you might have regarding the enclosed ordinance. Yours truly, }hr Vii ,, L ROBERT A. SUGARMAN Board Certified Labor & Employment Lawyer RAS /jd Exhibit B Foster&Foster. Actuaries and Consultants December 3, 2010 Ms. Carolyn Furlong Benefits USA UEC Q 6 Z010 3810 Inverrary Blvd., Suite 303 ul Lauderhill, FL 33319 — By Re: City of Aventura Police Officers' Retirement Plan Dear Carolyn: Upon your request, we have reviewed the proposed Ordinance amending the plan to include certain changes to the Internal Revenue Code and have determined that its adoption will have no impact on the assumptions used in determining the funding requirements of the program. Because the changes do not result in a change in the valuation results, it is our opinion that a formal Actuarial Impact Statement is not required in support of its adoption. However, since the Division of Retirement must be aware of the current provisions of all public pension programs, it is recommended that you send a copy of this letter and a copy of the fully executed Ordinance to each of the following offices: Mr. Keith Brinkman Patricia Shoemaker Bureau of Local Retirement Systems Municipal Police and Fire Division of Retirement Pension Trust Funds P. O. Box 9000 Division of Retirement Tallahassee, FL 32315 -9000 P.O. Box 3010 Tallahassee, FL 32315 -3010 If you have any questions, please let me know. Sincerely, Patrick T. Donlan PTD /Isw 13420 Parker Commons Blvd., Suite 104 • Fort Myers, Florida 33912 • 239-433-5500 • Fax 239 - 481 -0634 • www.foster- foster.com ORDINANCE NO. 2011 - AN ORDINANCE OF THE CITY OF AVENTURA, FLORIDA, AMENDING PROVISIONS OF THE POLICE OFFICERS' RETIREMENT PLAN TO COMPLY WITH THE INTERNAL REVENUE CODE; PROVIDING FOR A REPEALER; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, recent changes to federal laws and regulations require that various amendments be made to the City of Aventura Police Officers' Retirement Plan (the "Plan ") in order to maintain its status as a qualified plan under Section 401(a) of the Internal Revenue Code; and WHEREAS, an amendment to the City Code is necessary to permit such new obligations and conditions; and WHEREAS, the trustees of the Plan have requested and approved such an amendment as being in the best interests of the participants and beneficiaries as well as improving the administration of the Plan; and WHEREAS, the City Commission has received, reviewed and considered an actuarial impact statement describing the actual impact of the amendments provided for herein. NOW THEREFORE, BE IT ORDAINED by the City Commission of the City of Aventura, Florida: Section 1. The foregoing WHEREAS clauses are hereby ratified and confirmed as being true and correct and are hereby made a specific part of this Ordinance upon adoption hereof. ` Deleted text is indicated by a ugh and added text is indicated by an underline. Ordinance No. 2011 -_ Page 2 Section 2. Section 36 -22 "Definitions" of Article II, "Police Pension Plan and Trust Fund" of Chapter 36 "Retirement" of the City Code is amended to read as follows: Sec. 36-22. Definitions. Earnable compensation shall mean a member's base pay for regular hours worked as an employee, overtime pay, amounts paid for administrative leave, bereavement leave, compensatory time paid in lieu of regular wages, court time, Garcia days for K -9 service, holiday leave taken in lieu of regular pay, job basis leave, jury duty, light duty, paid military leave, personal leave taken in lieu of regular pay, storm leave, storm /hurricane pay, suspension with pay, pay for time off due on the job injury, vacation leave taken in lieu of regular pay, and workers' compensation paid by the City; and, excluding pay received for off -duty details for third parties, whether or not the payment is made through the City. Earnable compensation shall not include payouts of accumulated leave taken as cash upon separation from service. Retroactive payments shall be credited to the calendar year in which such payments would have been received had they been timely paid. Compensation for • • - _ - - - • . - - - - - - - - - 4 . change in the cost of living in the manner prcccribcd by the IRC, Section '01(a)(17)(B). Pursuant to F.S. § 440.21, pension contributions shall not be deducted from a member's workers' compensation award. For the purpose of applying the limitations set forth in Sections 401(a)(17) and 415 of the Internal Revenue Code, earnable compensation shall include any elective deferral (as defined in Code Section 402(q)(3) of the Internal Revenue Code), and any amount which is contributed or deferred by the employer at the election of the Member and which is not includible in the gross income of the Member by reason of Section 125 or 457 of the Internal Revenue Code. For limitation years beginning on and after January 1, 2001, for the purposes of applying the limitations described in Section 36 -31 hereof, compensation paid or made available during such limitation years shall include elective amounts that are not includible in the gross income of the Member by reason of Section 132(0(4) of the Internal Revenue Code. 2 Ordinance No. 2011 - Page 3 Section 3. Section 36 -31 "Compliance with the Internal Revenue Code" of Article II, "Police Pension Plan and Trust Fund" of Chapter 36 "Retirement" of the City Code is amended to read as follows: Sec. 36 -31. Compliance with the Internal Revenue Code. a) It is the intention of the City and of the Board that the plan remain at all times a qualified plan, as that term is defined under the Internal Revenue Code. (b) No member's annual benefit shall exceed the amounts (c) In no event may a member's retirement benefit be delayed member attains age 70 1/2, or such later date as may be set by When a distribution of the participant's entire interest is not made in beyond the life expectancy of the participant; or over a period certain not extending beyond the joint life and last survivor (d) If the distribution has commenced before the participant's - -- - over the Iifc of the beneficiary, or over a period certain not 3 Ordinance No. 2011 -_ Page 4 • nding beyond thc life expectancy of the beneficiary, commencing not later than thc end of the calendar year if a designated beneficiary is the participant's surviving (e) Direct transfcrs of eligible distributions shall be made as follows: eligible Retirement Plan specified by the distributee in a direct rollover. (2) Definitions. a. Eligible rollover distribution. An eligible rollover the balance to the credit of a distributce, except that equal periodic payments (not Tess frequently than distributes or the joint lives (or joint life expectancies) of the distribute° and the distributee's designated required under Section 401(a)(9) of the Internal e. Section 108(a) of the Internal Revenue Codc, an described in Section 403(a) of the Internal Revenue Codc, a plan - described in Section 457 of the Internal Revenue Code, or a Qualified Trust described in accepts a distributec's eligible rollover distribution. 4 Ordinance No. 2011 -_ Page 5 to a surviving spouse, an eligible Retirement Plan is retirement annuity. c. Distributes. A distributes includes an employee or former employee. In addition, the employee's or formcr employee's surviving spouse is a distribute° with rcgard to thc interest of thc spouse. d. Direct rollover. A direct rollover is a-I the plan to the eligible Retircmcnt Plan specified by the distributes. (a) Maximum Pension. Notwithstanding any provision of this Plan to the contrary, the Annual Pension that is accrued by or paid to a participant shall not exceed the Dollar Limitation set forth below. If the benefit the participant would otherwise accrue in a Limitation Year would produce an Annual Pension in excess of the Dollar Limitation, the benefit shall be limited to a benefit that does not exceed the Dollar Limitation. (1) Definitions Used in this Section. (A) "Annual Pension" means the benefits received by a participant under this Plan expressed in the form of a straight life annuity. In determining whether benefits payable exceed the Dollar Limitation set forth below, benefits payable in any form other than a straight life annuity shall be adjusted to the larger of: (i) The annual amount of the straight life annuity (if any) payable to the participant under the plan commencing at the same annuity starting date as the form of benefit payable to the participant; or (ii) The annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the form of benefit payable to the participant, computed using a 5 percent interest assumption and the applicable 5 Ordinance No. 2011 -_ Page 6 mortality table described in §1.417(e)- 1(d)(2) for that annuity starting date. No actuarial adjustment to the benefit shall be made for benefits that are not directly related to retirement benefits (such as a qualified disability benefit, preretirement incidental death benefits, and postretirement medical benefits); or the inclusion in the form of benefit of an automatic benefit increase feature, provided the form of benefit is not subject to §417(e)(3) of the Internal Revenue Code and would otherwise satisfy the limitations of this Subsection (a), and the amount payable under the form of benefit in any Limitation Year shall not exceed the limits of this Subsection (a) applicable at the annuity starting date, as increased in subsequent years pursuant to 415(d) of the Code. For this purpose, an automatic benefit increase feature is included in a form of benefit if the form of benefit provides for automatic, periodic increases to the benefits paid in that form. (B) "Dollar Limitation" means $160,000 (subject to the annual adjustments provided under Section 415(d) of the IRC). Said amount shall be adjusted based on the age of the participant when benefits begin, as follows: (i) Except with respect to a participant who is a "Qualified Participant" as defined in Section 415(b)(2)(H) of the Code, for benefits (except survivor and disability benefits as defined in Section 415(b)(2)(I) of the Code) beginning before aqe 62 the Aqe- Adjusted Dollar Limitation is equal to the lesser of -- (1) the actuarial equivalent of the annual amount of a straight life annuity commencinq at the annuity starting date that has the same actuarial present value as a deferred straight life annuity commencing at age 62, where annual payments under the straight life annuity commencing at age 62 are equal to the Dollar Limitation (as adjusted pursuant to section 415(d) for the limitation year), 6 Ordinance No. 2011 -_ Page 7 and where the actuarially equivalent straight life annuity is computed using a 5 percent interest rate and the applicable mortality table under §1.417(e)- 1(d)(2) that is effective for that annuity starting date (and expressing the participant's age based on completed calendar months as of the annuity starting date); and (II) the Dollar Limitation (as adjusted pursuant to section 415(d)) multiplied by the ratio of the annual amount of the straight life annuity under the plan to the annual amount of the straight life annuity under the plan commencing at aqe 62, with both annual amounts determined without applying the rules of section 415. (ii) For benefits beginning after the age of 65, the age - adjusted Dollar Limitation is equal to the lesser of: (I) the actuarial equivalent of the annual amount of a straight life annuity commencing at the annuity starting date that has the same actuarial present value as a straight life annuity commencing at age 65, where annual payments under the straight life annuity commencing at aqe 65 are equal to the dollar limitation of section 415(b)(1)(A) (as adjusted pursuant to section 415(d) for the limitation year), and where the actuarially equivalent straight life annuity is computed using a 5 percent interest rate and the applicable mortality table under §1.417(e)- 1(d)(2) that is effective for that annuity starting date (and expressing the participant's age based on completed calendar months as of the annuity starting date); and 7 Ordinance No. 2011 -_ Page 8 (11) the section 415(b)(1)(A) Dollar limitation (as adjusted pursuant to section 415(d) and §1.415(d) -1 for the limitation year) multiplied by the ratio of the annual amount of the adjusted immediately commencing straight life annuity under the plan to the adjusted age 65 straight life annuity. The adjusted immediately commencing straight life annuity means the annual amount of the immediately commencing straight life annuity payable to the participant, computed disregarding the participant's accruals after age 65 but including actuarial adjustments even if those actuarial adjustments are applied to offset accruals. For this purpose, the annual amount of the immediately commencing straight life annuity is determined without applying the rules of section 415. The adjusted age 65 straight life annuity means the annual amount of the straight life annuity that would be payable under the plan to a hypothetical participant who is 65 years old and has the same accrued benefit (with no actuarial increases for commencement after age 65) as the participant receiving the distribution (determined disregarding the participant's accruals after age 65 and without applying the rules of section 415). (iii) There shall be no age adjustment of the Dollar Limitation with respect to benefits beginning between the ages of 62 and 65. (2) The limitations set forth in this Subsection (a) shall not apply if the Annual Pension does not exceed $10,000 provided the participant has never participated in a Defined Contribution Plan maintained by the City. (3) Cost -of- living adjustments in the Dollar Limitation for benefits shall be limited to scheduled annual increases 8 Ordinance No. 2011 -_ Page 9 determined by the Secretary of the Treasury under Section Subsection 415(d) of the Code. (4) In the case of a participant who has fewer than 10 years of participation in the Plan, the Dollar Limitation set forth in Paragraph (1)(B) of this Subsection (a) shall be multiplied by a fraction - (i) the numerator of which is the number of years (or part thereof) of participation in the Plan, and (ii) the denominator of which is 10. (5) Any portion of a participant's benefit that is attributable to mandatory employee contributions (unless picked -up by the City) or rollover contributions, shall be taken into account in the manner prescribed in the regulations under Section 415 of the Code. (6) Should any participant participate in more than one defined benefit plan maintained by the City, in any case in which the participant's benefits under all such defined benefit plans (determined as of the same age) would exceed the Dollar Limitation applicable at that age, the accrual of the participant's benefit under this Plan shall be reduced so that the participant's combined benefits will equal the Dollar Limitation. (7) For a participant who has or will have distributions commencing at more than one annuity starting date, the Annual Benefit shall be determined as of each such annuity starting date (and shall satisfy the limitations of this Section as of each such date), actuarially adjusting for past and future distributions of benefits commencing at the other annuity starting dates. For this purpose, the determination of whether a new starting date has occurred shall be made without regard to § 1.401(a) -20, Q&A 10(d), and with regard to 1.415(b)1(b)(1)(iii)(B) and (C) of the Income Tax Regulations. (8) The determination of the Annual Pension under Paragraph (a)(1) of this Subsection (a) shall take into account (in the manner prescribed by the regulations under Section 415 of the Code) social security supplements described in 5 411(a)(9) of the Internal Revenue Code and benefits transferred from another defined benefit plan, other than transfers of distributable benefits pursuant § 1.411(d) -4, Q&A- 3(c) of the Income Tax Regulations. 9 Ordinance No. 2011 -_ Page 10 (9) The above limitations are intended to comply with the provisions of Section 415 of the Code, as amended, so that the maximum benefits provided by plans of the City shall be exactly equal to the maximum amounts allowed under Section 415 of the Code and regulations thereunder. If there is any discrepancy between the provisions of this Subsection (a) and the provisions of Section 415 of the Code and regulations thereunder, such discrepancy shall be resolved in such a way as to give full effect to the provisions of Section 415 of the Code. The value of any benefits forfeited as a result of the application of this Subsection (a) shall be used to decrease future employer contributions. (10) For the purpose of applying the limitations set forth in Sections 401(a)(17) and 415 of the Internal Revenue Code, Earnings shall include any elective deferral (as defined in Code Section 402(c)(3) of the Internal Revenue Code), and any amount which is contributed or deferred by the employer at the election of the Member and which is not includible in the gross income of the Member by reason of Section 125 or 457 of the Internal Revenue Code. For limitation years beginning on and after January 1, 2001, for the purposes of applying the limitations described in this Subsection (a) of Section 42 -33, compensation paid or made available during such limitation years shall include elective amounts that are not includible in the gross income of the Member by reason of Section 132(0(4) of the Internal Revenue Code. (b) Required Beginning Date: Notwithstanding any other provision of the Plan, payment of a participant's retirement benefits under the Plan shall commence not later than the participant's Required Beginning Date, which is defined as the later of: - April 1 of the calendar year that next follows the calendar year in which the participant attains or will attain the aqe of 70'/ years; or - April 1 of the calendar year that next follows the calendar year in which the participant retires. (c) Required Minimum Distributions. 10 Ordinance No. 2011 -_ Page 11 (1) Required Beginning Date. The participant's entire interest will be distributed, or begin to be distributed, to the participant no later than the participant's Required Beginning Date as defined in Subsection (b) of this Section 36 -31. (2) Death of participant Before Distributions Begin. (A) If the participant dies before distributions begin, the participant's entire interest will be distributed, or begin to be distributed, no later than as follows: (i) If the participant's surviving spouse is the participant's sole designated beneficiary, then distributions to the surviving spouse will begin by December 31 of the calendar year immediately following the calendar year in which the participant died, or by December 31 of the calendar year in which the participant would have attained age 70 if later. (ii) If the participant's surviving spouse is not the participant's sole designated beneficiary, then distributions to the designated beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the participant died. (iii) If there is no designated beneficiary as of September 30 of the year following the year of the participant's death, the participant's entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the participant's death. (B) The participant's entire interest shall be distributed as follows: (i) participant Survived by Designated Beneficiary. If the participant dies before the date distribution of his or her interest begins and there is a designated beneficiary, the participant's entire interest will be distributed, beginning no later than the time described in Subparagraph (2)(A) above, over the life of the 11 Ordinance No. 2011 -_ Page 12 designated beneficiary or over a period certain not exceeding: (I) unless the annuity starting date is before the first distribution calendar vear, the life expectancy of the designated beneficiary determined using the beneficiary's age as of the beneficiary's birthday in the calendar year immediately following the calendar vear of the participant's death; or (II) if the annuity starting date is before the first distribution calendar year, the life expectancy of the designated beneficiary determined using the beneficiary's age as of the beneficiary's birthday in the calendar year that contains the annuity starting date. (ii) No Designated Beneficiary. If the participant dies before the date distributions begin and there is no designated beneficiary as of September 30 of the year following the year of the participant's death, distribution of the participant's entire interest will be completed by December 31 of the calendar year containing the fifth anniversary of the participant's death. (C) Death of Surviving Spouse Before Distributions to Surviving Spouse Begin. In any case in which (i) the participant dies before the date distribution of his or her interest begins, (ii) the participant's surviving spouse is the participant's sole designated beneficiary, and (iii) the surviving spouse dies before distributions to the surviving spouse begin, Subparagraphs (2)(A) and 2(B) above shall apply as though the surviving spouse were the participant. (3) Requirements For Annuity Distributions That Commence During participant's Lifetime. (A) Joint Life Annuities Where the Beneficiary Is Not the participant's Spouse. If the participant's 12 Ordinance No. 2011 -_ Page 13 interest is being distributed in the form of a joint and survivor annuity for the joint lives of the participant and a nonspousal beneficiary, annuity payments to be made on or after the participant's Required Beginning Date to the designated beneficiary after the participant's death must not at any time exceed the applicable percentage of the annuity payment for such period that would have been payable to the participant using the table set forth in Q&A -2 of Section 1.401(a)(9) -6T of the Treasury regulations. If the form of distribution combines a joint and survivor annuity for the joint lives of the participant and a nonspousal beneficiary and a period certain annuity, the requirement in the preceding sentence will apply to annuity payments to be made to the designated beneficiary after the expiration of the period certain. (B) Period Certain Annuities. Unless the participant's spouse is the sole designated beneficiary and the form of distribution is a period certain and no life annuity, the period certain for an annuity distribution commencing during the participant's lifetime may not exceed the applicable distribution period for the participant under the Uniform Lifetime Table set forth in Section 1.401(a)(9) -9 of the Treasury regulations for the calendar year that contains the annuity starting date. If the annuity starting date precedes the year in which the participant reaches age 70, the applicable distribution period for the participant is the distribution period for age 70 under the Uniform Lifetime Table set forth in Section 1.401(a)(9) -9 of the Treasury regulations plus the excess of 70 over the age of the participant as of the participant's birthday in the year that contains the annuity starting date. If the participant's spouse is the participant's sole designated beneficiary and the form of distribution is a period certain and no life annuity, the period certain may not exceed the longer of the participant's applicable distribution period, as determined under this Subparagraph (3)(B), or the joint life and last survivor expectancy of the participant and the participant's spouse as determined under the Joint and Last Survivor Table set forth in Section 1.401(a)(9) -9 of the Treasury regulations, using the participant's and spouse's attained ages as of the 13 Ordinance No. 2011 -_ Page 14 participant's and spouse's birthdays in the calendar year that contains the annuity starting date. (4) Form of Distribution. Unless the participant's interest is distributed in the form of an annuity purchased from an insurance company or in a single sum on or before the Required Beginning Date, as of the first distribution calendar year distributions will be made in accordance with Subparagraphs (4)(A), (4)(B) and (4)(C) below. If the participant's interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirements of Section 401(a)(9) of the Code and the Treasury regulations. Any part of the participant's interest which is in the form of an individual account described in Section 414(k) of the Code will be distributed in a manner satisfying the requirements of Section 401(a)(9) of the Code and the Treasury regulations that apply to individual accounts. (A) General Annuity Requirements. If the participant's interest is paid in the form of annuity distributions under the Plan, payments under the annuity will satisfy the following requirements: (i) the annuity distributions will be paid in periodic payments made at intervals not longer than one year; (ii) the distribution period will be over a life (or lives) or over a period certain, not longer than the distribution period described in Paragraphs 2 or 3 above, whichever is applicable, of this Subsection (c); (iii) once payments have begun over a period certain, the period certain will not be changed even if the period certain is shorter than the maximum permitted; (iv) payments will either be non - increasing or increase only as follows: (I) by an annual percentage increase that does not exceed the 14 Ordinance No. 2011 -_ Page 15 annual percentage increase in a cost -of- living index that is based on prices of all items and issued by the Bureau of Labor Statistics; (II) to the extent of the reduction in the amount of the participant's payments to provide for a survivor benefit upon death, but only if the beneficiary whose life was being used to determine the distribution period dies or is no longer the participant's beneficiary pursuant to a qualified domestic relations order within the meaning of Section 414(p) of the Code; (III) to provide cash refunds of employee contributions upon the participant's death; or (IV) to pay increased benefits that result from a Plan amendment. (B) Amount Required to be Distributed by Required Beginning Date. The amount that must be distributed on or before the participant's Required Beginning Date (or, if the participant dies before distributions begin, the date distributions are required to begin under Subparagraph (2)(A)(i) or (2)(A)(ii), whichever is applicable) is the payment that is required for one payment interval. The second payment need not be made until the end of the next payment interval even if that payment interval ends in the next calendar year. Payment intervals are the periods for which payments are received, e.g., bi- monthly, monthly, semi - annually, or annually. All of the participant's benefit accruals as of the last day of the first distribution calendar year will be included in the calculation of the amount of the annuity payments for payment intervals ending on or after the participant's Required Beginning Date. (C) Additional Accruals After First Distribution Calendar Year. Any additional benefits accruing to the participant in a calendar year after the first 15 Ordinance No. 2011 - Page 16 distribution calendar year will be distributed beginning with the first payment interval ending in the calendar year immediately following the calendar year in which such amount accrues. (5) For purposes of this Subsection (c), distributions are considered to begin on the participant's Required Beginning Date. If annuity payments irrevocably commence to the participant (or to the participant's Surviving Spouse) before the participant's Required Beginning Date (or, if to the participant's Surviving Spouse, before the date distributions are required to begin in accordance with Subparagraph (2)(A) above), the date distributions are considered to begin is the date distributions actually commence. (6) Definitions. (A) Designated beneficiary. The individual who is designated as the beneficiary under the Plan and is the designated beneficiary under Section 401(a)(9) of the Code and Section 1.401(a)(9) -1, Q&A -4, of the Treasury regulations. (B) Distribution calendar year. A calendar year for which a minimum distribution is required. For distributions beginning before the participant's death, the first distribution calendar year is the calendar year immediately preceding the calendar year which contains the participant's Required Beginning Date. For distributions beginning after the participant's death, the first distribution calendar year is the calendar year in which distributions are required to begin pursuant to Paragraph (2) of this Subsection (C) Life expectancy. Life expectancy as computed by use of the Single Life Table in Section 1.401(a)(9)- 9 of the Treasury regulations. (d) (1) Notwithstanding any provision of the Plan to the contrary that would otherwise limit a distributee's election under this Section, a distributee may elect, at the time and in the manner prescribed by the Administrator, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover. 16 Ordinance No. 2011 -_ Page 17 (2) Definitions The following definitions apply to this Section: (A) Eligible rollover distribution: An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: (i) any distribution that is one of a series of substantially equal periodic payments (not Tess frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of 10 years or more; (ii) any distribution to the extent such distribution is required under Section 401(a)(9) of the Code, (iii) the portion of any distribution that is a hardship distribution described in Section 401(k)(2)(B)(i)(IV) of the Code; and (iv) the portion of any distribution that is not includible in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities), provided that a portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after -tax Employee contributions which are not includible in gross income. However, such portion may be transferred only to an individual retirement account or annuity described in Section 408(a) or (b) of the Code, or to a qualified defined contribution plan described in Section 401(a) or 403(a) of the Code that agrees to separately account for amounts so transferred, including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible. (3) Eligible retirement plan: An eligible retirement plan is an individual retirement account described in Section 408(a) of the 17 Ordinance No. 2011 -_ Page 18 Code, an individual retirement annuity described in Section 408(b) of the Code, an annuity plan described in Section 403(a) of the Code, an annuity contract described in Section 403(b) of the Code, a qualified trust described in Section 401 (a) of the Code, an eligible plan under Section 457(b) of the Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from this Plan, or, with respect to distributions on or after January 1, 2008, a Roth IRA (subject to the limitations of Code Section 408A(c)(3)) that accepts the distributee's eligible rollover distribution. (4) Distributee: A distributee includes an Employee or former Employee. In addition, the Employee's or former Employee's survivinq spouse and the Employee's or former Employee's spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Section 414(p) of the Code, are distributees with regard to the interest of the spouse or former spouse. Furthermore, effective January 1, 2007, a surviving designated beneficiary as defined in Section 401(a)(9)(E) of the Code who is not the surviving spouse and who elects a direct rollover to an individual retirement account described in Section 408(a) of the Code or an individual retirement annuity described in Section 408(b) of the Code shall be considered a distributee. (5) Direct rollover: A direct rollover is a payment by the Plan to the eligible retirement plan specified by the distributee. (e) Notwithstanding any other provision of this Plan, the maximum amount of any mandatory distribution, as defined in Section 401(a)(31) of the Code, payable under the Plan shall be $1000. (f) Compensation Limitations Under 401(a)(17): In addition to other applicable limitations set forth in the Plan, and notwithstanding any other provision of the Plan to the contrary, the annual compensation of each participant taken into account under the Plan shall not exceed the EGTRRA annual compensation limit for limitation years beginning after December 31, 2001. The EGTRRA annual compensation limit is $200,000, as adjusted by the Commissioner for increases in the cost of living in accordance with Section 401(a)(17)(B) of the Code. The cost -of- living adjustment in 18 Ordinance No. 2011 -_ Page 19 effect for a calendar year applies to any period, not exceeding 12 months, over which Compensation is determined (determination period) beginning in such calendar year. If a determination period consists of fewer than 12 months, the EGTRRA annual compensation limit will be multiplied by a fraction, the numerator of which is the number of months in the determination period, and the denominator of which is 12. Any reference in the Plan to the limitation under Section 401 (a)(17) of the Code shall mean the EGTRRA annual compensation limit set forth in this provision. (q) At no time prior to the satisfaction of all liabilities under the plan with respect to members and their spouses or beneficiaries, shall any part of the corpus or income of the fund be used for or diverted to any purpose other than for their exclusive benefit. Section 4. All sections or parts of sections of the City Code, all ordinances or parts of ordinances, and all resolutions or parts of resolutions in conflict herewith, be and the same are hereby repealed to the extent of such conflict. Section 5. The provisions of this Ordinance are declared to be severable and if any section, sentence, clause or phrase of this Ordinance shall for any reason be held to be invalid or unconstitutional, such decision shall not effect the validity of the remaining sections, sentences, clauses, and phrases of this Ordinance but they shall remain in effect, it being the legislative intent that this Ordinance shall stand notwithstanding the invalidity of any part. Section 6. It is the intention of the City Commission of the City of Aventura that the provisions of this Ordinance shall become and be made a part of the City Code and that the sections of this Ordinance may be renumbered or relettered and the word "ordinance" may be changed to "Chapter ", "Section ", 19 Ordinance No. 2011 -02 Page 20 "Article ", or such other appropriate word or phrase, the use of which shall accomplish the intentions herein expressed. Section 7. This Ordinance shall become effective immediately upon adoption on second reading. The foregoing Ordinance was offered by Commissioner Stern, who moved its adoption on first reading. This motion was seconded by Commissioner Joel, and upon being put to a vote, the vote was as follows: Commissioner Zev Auerbach yes Commissioner Teri Holzberg absent Commissioner Billy Joel yes Commissioner Michael Stern yes Commissioner Luz Urbaez Weinberg absent Vice Mayor Bob Diamond yes Mayor Susan Gottlieb yes The foregoing Ordinance was offered by Commissioner who moved its adoption on second reading. This motion was seconded by Commissioner and upon being put to a vote, the vote was as follows: Commissioner Zev Auerbach Commissioner Teri Holzberg Commissioner Billy Joel Commissioner Michael Stern Commissioner Luz Urbaez Weinberg Vice Mayor Bob Diamond Mayor Susan Gottlieb PASSED AND ADOPTED on first reading this 1st day of March, 2011. 20 Ordinance No. 2011 -_ Page 21 PASSED AND ADOPTED on second reading this 5 day of April, 2011. Susan Gottlieb, Mayor ATTEST: Teresa M. Soroka, MMC City Clerk Approved as to Form and Legal Sufficiency: City Attorney 21 MIAMI DAILY BUSINESS REVIEW Published Daily except Saturday, Sunday and Legal Holidays Miami, Miami -Dade County, Florida STATE OF FLORIDA COUNTY OF MIAMI -DADE: Before the undersigned authority personally appeared MARIA MESA, who on oath says that he or she is the LEGAL CLERK, Legal Notices of the Miami Daily Business Review f /k/a Miami Review, a daily (except Saturday, Sunday and Legal Holidays) newspaper, published at Miami in Miami -Dade County, Florida; that the attached copy of advertisement, being a Legal Advertisement of Notice in the matter of CITY OF AVENTURA PROPOSED ORDINANCE MEETING - APRIL 5, 2011 in the XXXX Court, was published in said newspaper in the issues of 03/02/2011 Affiant further says that the said Miami Daily Business Review is a newspaper published at Miami in said Miami -Dade County, Florida and that the said newspaper has heretofore been continuously published in said Miami -Dade County, Florida, each day (except Saturday, Sunday and Legal Holidays) and has been entered as second class mail matter at the post office in Miami in said Miami -Dade County, Florida, for a period of one year next preceding the first publication of the attached copy of advertisement; and affiant further says that he or she has neither paid nor promised any person, firm or corporation any discount, r , seaao 'ssion or refund for the purpose of securi Is advertisement publication in the said before me this MARCH ,A.01 2011 (SEAL) MARIA MESA personally known to me R Notary ¢vuiic State of Florida Veronica Perez My Commission 00819771 Expires 09/03 /2012 e' CITY OF AVENTURA PUBLIC NOTICE OF PROPOSED ORDINANCE NOTICE IS HEREBY GIVEN that on Tuesday, the 5th day of April, 2011, at a meeting of the City Commission of the City of Aventura to be held at 6 p.m. in the Commission Chamber of the Aventura Government Center, 19200 West Country Club Drive, Aventura, Florida, the City Commission will consider the adoption of the following Ordinance on second reading, entitled: AN ORDINANCE OF THE CITY OF AVENTURA, FLORIDA, AMENDING PROVISIONS OF THE POLICE OFFICERS' RETIREMENT PLAN TO COMPLY WITH THE INTERNAL REVENUE CODE; PROVIDING FOR A REPEALER; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION; AND PROVIDING FOR AN EFFECTIVE DATE. The proposed Ordinance may be inspected by the public at the Office of the City Clerk, 19200 West Country Club Drive, Aventura, Florida., Interested parties may appear at the Public Hearing and be heard with respect to the proposed Ordinance. Any person wishing to address the City Commission on any item at this Public Hearing may do so after the Mayor opens the public hearing. In accordance with the Americans with Disabilities Act of 1990, all persons who are disabled and who need special accommodations to participate in this proceeding because of that disability should contact the Office of the City Clerk, 305 - 466 -8901, not later than two business days prior to such proceedings. If a person decides to appeal any decision made by the City Commission with respect to any matter considered at a meeting or hearing, that person will need a record of the proceedings and, for such purpose, may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. Teresa M. Soroka, MMC City Clerk 3/2 11- 4- 92/1657636M