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04-02-2024 City Commission Regular Meeting Agenda
CITY OF AVENTURA Aventura Government Center 19200 West Country Club Drive Aventura, FL 33180 ..�V r■. e4 q CITY COMMISSION REGULAR MEETING AGENDA April 2, 2024 6:00 p.m. Aventura Government Center Commission Chambers City Commission Mayor Howard S. Weinberg, Esq. Vice Mayor Paul A. Kruss Commissioner Amit Bloom Commissioner Rachel S. Friedland, Esq. Commissioner Billy Joel Commissioner Dr. Linda Marks Commissioner Michael Stern City Manager Ronald J. Wasson City Clerk Ellisa L. Horvath, MMC City Attorneys Weiss Serota Helfman Cole & Bierman Aventura City Commission Regular Meeting Agenda April 2, 2024 1. CALL TO ORDER/ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. AGENDA: Request for Deletions/Emergency Additions 4. SPECIAL PRESENTATIONS: • Proclamations • Special Recognitions • Employee Service Awards — None. • Charter School Update — None. 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. If the public wishes to speak on a matter on the consent agenda they must inform the City Clerk prior to the start of the meeting. They will be recognized to speak prior to the approval of the consent agenda. A. APPROVAL OF MINUTES: • March 5, 2024 City Commission Regular Meeting • March 21 , 2024 City Commission Regular Workshop B. 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 FOR AN EFFECTIVE DATE. C. A MOTION AUTHORIZING THE APPROPRIATION OF UP TO$7,550.98 FOR SCANWRITER EXCEL STANDARD WORKSTATION PLUS MAINTENANCE AND $75,000.00 FOR PACKETALK DIESEL CAMERA AND ALPR TRAILER WITH 5-YEAR WARRANTY FROM THE POLICE FEDERAL FORFEITURE FUNDS IN ACCORDANCE WITH THE CITY MANAGER'S MEMORANDUM. D. A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, SELECTING VARIOUS CONSULTANTS PURSUANTTO REQUEST FOR QUALIFICATIONS NO. 2023-11-01 CONTINUING PROFESSIONAL SERVICES; PROVIDING FOR AUTHORIZATION; AND PROVIDING FOR AN EFFECTIVE DATE. E. A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, APPROVING A MASTER MAINTENANCE AGREEMENT FOR WAYFINDING KIOSK DEVICES WITH THE FLORIDA DEPARTMENT OF TRANSPORTATION IN CONNECTION WITH THE INSTALLATION OF OUTDOOR DIGITAL MESSAGE BOARD KIOSKS WITHIN THE CITY OF AVENTURA; PROVIDING FOR IMPLEMENTATION; AND PROVIDING FOR AN EFFECTIVE DATE. Page 1 of 2 Aventura City Commission Regular Meeting Agenda April 2, 2024 F. A MOTION TO ACCEPT FOR FILING OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 AND THE LETTER DATED MARCH 21, 2024 ATTACHED HERETO AS ATTACHMENT A. 6. ZONING HEARINGS — QUASI-JUDICIAL PUBLIC HEARINGS: None. 7. ORDINANCES — FIRST READING/PUBLIC HEARINGS: AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, AMENDING CHAPTER 1 "GENERAL PROVISIONS," OF THE CITY OF AVENTURA CODE OF ORDINANCES TO CREATE SECTION 1-22 "URINATING OR DEFECATING IN PLAIN VIEW IN PUBLIC PLACES PROHIBITED"; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; PROVIDING FOR INCLUSION IN THE CODE; AND PROVIDING FOR AN EFFECTIVE DATE. 8. ORDINANCES — SECOND READING/PUBLIC HEARINGS: AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, AMENDING ORDINANCE NO. 2023-17 WHICH ORDINANCE ADOPTED A BUDGET FOR THE 2023/2024 FISCAL YEAR BY REVISING THE 2023/2024 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; AND PROVIDING FOR AN EFFECTIVE DATE. 9. RESOLUTIONS/PUBLIC INPUT: None. 10. REPORTS 11. PUBLIC COMMENTS 12. OTHER BUSINESS: None. 13. ADJOURNMENT FUTURE MEETINGS Meeting dates, times, and location are subject to change. Please check the City's website for the most current schedule. Meetings will be held at the City of Aventura Government Center (19200 West Country Club Drive,Aventura). COMMISSION REGULAR WORKSHOP—APRIL 18,2024 AT 9 AM COMMISSION REGULAR MEETING—MAY 7,2024 AT 6 PM COMMISSION REGULAR WORKSHOP—MAY 16,2024 AT 9 AM 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 or cityclerk@cityofaventura.com, not later than two days prior to such proceedings. One or more members of the City of Aventura Advisory Boards may participate in 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 are available online at cityofaventura.com for viewing and printing,or may be requested through the Office of the City Clerk at(305)466-8901 or cityclerk@cityofaventura.com. Page 2 of 2 CITY OF "ENTURA OFFICE OF THE CITY CLERK MEMORANDUM TO: City Commission FROM: Ellisa L. Horvath, MMC, City Clerk DATE: March 29, 2024 SUBJECT: Approval of Minutes April 2, 2024 City Commission Meeting Agenda RECOMMENDATION It is recommended that the City Commission approve the attached minutes, as provided by the City Clerk, for the Commission meetings held as listed below. BACKGROUND Meetings were held and minutes have been provided for Commission approval for the following: • March 5, 2024 City Commission Regular Meeting • March 21, 2024 City Commission Regular Workshop Should you have any questions, please contact me. /elh attachments &`?i AVENTURA CITY COMMISSION REGULAR MEETING MINUTES MARCH 5, 2024 6:00 p.m. Aventura Government Center 19200 W. Country Club Drive Aventura, FL 33180 1. CALL TO ORDER/ROLL CALL: The meeting was called to order by Mayor Weinberg at 6:10 p.m. The roll was called and the following were present: Mayor Howard S. Weinberg, Vice Mayor Paul A. Kruss, Commissioner Amit Bloom, Commissioner Rachel S. Friedland, Commissioner Billy Joel, Commissioner Dr. Linda Marks, Commissioner Michael Stern, City Manager Ronald J. Wasson, City Clerk Ellisa L. Horvath, and City Attorney Robert Meyers. As a quorum was determined to be present, the meeting commenced. 2. PLEDGE OF ALLEGIANCE: The Pledge was done at the Local Planning Agency Meeting. 3. AGENDA: REQUESTS FOR DELETIONS/EMERGENCY ADDITIONS: None. 4. SPECIAL PRESENTATIONS: • Proclamations: A proclamation for MS Awareness Week (March 10-16, 2024) was recognized. A proclamation was presented to Commissioner Michael Stern designating Colorectal Cancer Awareness Month (March 2024) as read by Mayor Weinberg. A proclamation was presented to Cindy and Scott Orlinsky, Nadene & Michael Wendrow, and Eli's friends designating Eli Silverman Day (February 25, 2024) as read by his friends Carson Orlinsky, Ethan Berman, Avi Lalo, and Max Klinger, as well as Mayor Weinberg. • Special Recognitions: None. • Employee Service Awards: None. • Charter School Update: None. Aventura City Commission Regular Meeting Minutes March 5, 2024 5. CONSENT AGENDA: There were no requests from the public to address the City Commission. A motion to approve the items on the Consent Agenda was offered by Commissioner Stern, seconded by Commissioner Friedland, and passed unanimously by roll call vote. The following action was taken: A. Minutes approved as follows: APPROVAL OF MINUTES: • February 6, 2024 City Commission Regular Meeting • February 20, 2024 City Commission Special Meeting • February 20, 2024 City Commission Regular Workshop B. Resolution No. 2024-16 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 FOR AN EFFECTIVE DATE. C. Resolution No. 2024-17 adopted as follows: A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, URGING THE FLORIDA LEGISLATURE TO PROVIDE FUNDING FOR THE ASSISTANT STATE ATTORNEYS EMPLOYED AT THE MIAMI-DADE COUNTY STATE ATTORNEY'S OFFICE, AND THE ASSISTANT PUBLIC DEFENDERS EMPLOYED AT THE MIAMI-DADE COUNTY PUBLIC DEFENDER'S OFFICE, INCLUDING A SALARY INCREASE, A COST OF LIVING ADJUSTMENT, AND A LOCALITY PAY DIFFERENTIAL IN ORDER TO SUPPORT THE HIRING AND RETENTION OF QUALIFIED AND EXPERIENCED ATTORNEYS, TO COMPENSATE FOR THE HIGH COST OF LIVING IN MIAMI-DADE COUNTY RELATIVE TO THE REST OF THE STATE OF FLORIDA; DIRECTING THE CITY CLERK TO SEND A COPY OF THIS RESOLUTION TO THE PRESIDENT OF THE FLORIDA SENATE, THE SPEAKER OF THE FLORIDA HOUSE OF REPRESENTATIVES,AND MEMBERS OF THE MIAMI-DADE COUNTY STATE LEGISLATIVE DELEGATION. 6. ZONING HEARINGS — QUASI-JUDICIAL PUBLIC HEARINGS: Mr. Meyers reviewed the quasi-judicial procedures for the item and Mrs. Horvath administered the oath to all those wishing to offer testimony on the item. Disclosures of ex parte communications were provided by the following members of the City Commission: Commissioner Friedland'. RESOLUTION: Mrs. Horvath read the following Resolution title: A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, GRANTING CONDITIONAL USE APPROVAL TO ALLOW THE SALE AND SERVICE OF ALCOHOLIC BEVERAGES AT A COCKTAIL LOUNGE AREA WITHIN GABY BY CALL ME GABY RESTAURANT LOCATED AT 19565 BISCAYNE BOULEVARD, UNIT 938, IN THE As disclosed at the March 5,2024 Aventura Local Planning Agency Meeting. Page 2 of 4 Aventura City Commission Regular Meeting Minutes March 5, 2024 AVENTURA MALL; PROVIDING FOR IMPLEMENTATION; AND PROVIDING FOR AN EFFECTIVE DATE. A motion for approval of the Resolution was offered by Commissioner Friedland and seconded by Commissioner Bloom. Community Development Director Keven Klopp entered the comments from the Local Planning Agency Meeting into the record by reference as well as the staff report recommending approval, subject to the conditions listed. No additional comments were provided on behalf of the Applicant (Gaby Aventura, LLC). Mayor Weinberg opened the public hearing. There being no speakers, the public hearing was closed. No additional comments were provided by the City Commission. The motion for approval of the Resolution passed unanimously by roll call vote and Resolution No. 2024-18 was adopted. 7. ORDINANCE — FIRST READING/PUBLIC HEARING: Mrs. Horvath read the following Ordinance title: AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, AMENDING ORDINANCE NO. 2023-17 WHICH ORDINANCE ADOPTED A BUDGET FOR THE 2023/2024 FISCAL YEAR BY REVISING THE 2023/2024 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; AND PROVIDING FOR AN EFFECTIVE DATE. A motion for approval of the Ordinance was offered by Commissioner Bloom and seconded by Vice Mayor Kruss. Mr. Wasson reviewed the item and clarified the revised amount for the ambulance. Mayor Weinberg opened the public hearing. There being no speakers, the public hearing was closed. No comments were provided by the City Commission. The motion for approval of the Ordinance on first reading passed unanimously by roll call vote. 8. ORDINANCES — SECOND READING/PUBLIC HEARINGS: None. 9. RESOLUTION/PUBLIC INPUT: None. 10. REPORTS: Reports were provided by members of the City Commission as follows: Page 3 of 4 Aventura City Commission Regular Meeting Minutes March 5, 2024 Mayor Weinberg announced the upcoming public charettes for the planning effort known as "Aventura 2050" for March 7th, March 26th, and a third date to be determined, with questions to be directed to the City's Planning Division. Mayor Weinberg reported on the participation in a recent charity bowling event, attendance at Israel Day in Tallahassee, and an event in Aventura for Magen David Adorn at which Commissioner and Mrs. Joel donated an ambulance. Commissioner Bloom and Commissioner Friedland also both reported on the first annual Israel Day in Tallahassee and the events associated with it. Commissioner Kruss also reported on the Magen David Adorn event at Porto Vita in Aventura. 11. PUBLIC COMMENTS: Comments were provided by the following members of the public: Marjorie Rosenblatt (19333 W. Country Club Drive, Aventura) and Yuliana Vilenchik. 12. OTHER BUSINESS: None. 13. ADJOURNMENT: There being no further business to come before the Commission, a motion to adjourn was offered by Vice Mayor Kruss, seconded by Commissioner Bloom, and unanimously approved; thus, adjourning the meeting at 6.53 p.m. Ellisa L. Horvath, MMC, City Clerk Approved by the City Commission on April 2, 2024. Page 4 of 4 AVENTURA CITY COMMISSION REGULAR WORKSHOP MINUTES MARCH 21, 2024 9:00 a.m. Aventura Government Center 19200 W. Country Club Drive Aventura, FL 33180 1. Call to Order/Roll Call: The meeting was called to order by Mayor Weinberg at 9:05 a.m. The following were present: Mayor Howard S. Weinberg, Vice Mayor Paul A. Kruss, Commissioner Amit Bloom', Commissioner Rachel S. Friedland, Commissioner Billy Joel, Commissioner Dr. Linda Marks, Commissioner Michael Sterne, City Manager Ronald J. Wasson, City Clerk Ellisa L. Horvath, and City Attorney Robert Meyers. As a quorum was determined to be present, the meeting commenced. 2. Pledge of Allegiance: The Pledge was led by Mayor Weinberg. 3. Discussion: Designation of Director and Alternate Director to the Miami- Dade County Leagues of Cities (MDCLC for the Period of One Year) (City Manager): Mr. Wasson explained the request from the League to provide the name of a director and alternate to represent the City on the MDCLC Board for one year. The City Commission discussed the wonderful job that the current director, Commissioner Friedland, as well as the alternate director, Commissioner Stern, were doing. City Manager Summary: It was the consensus of the City Commission to designate Commissioner Friedland as the Director and Commissioner Stern as the Alternate Director for the City. 4. Discussion: Arts & Cultural Center Advisory Board Vacancy and Reappointment of Board Members (City Manager): Mr. Wasson recommended that the following current members be reappointed to the Board for two-year terms: Joyce R. Forchion, Becky Franco-Freifeld, Lisa Horwitz, Merridy Robinson Kotler, Judy Scott Lotwin, Rita Regev, Edna Schenkel, and Judith Weinberg. He additionally reported on plans to advertise the current vacancy on the Board due to the resignation of Ellen Elias, who moved out of the City. The City Commission discussed the reappointments and the ability for members to continuously serve. City Manager Summary: It was the consensus of the City Commission to proceed with a Resolution to reappoint the recommended members, with the ninth member to be 'Participated via virtual communications media technology. 2 Participated via virtual communications media technology. Aventura City Commission Regular Workshop Minutes—March 21, 2024 considered once applicants were received. Art in Public Places Advisory Board: Mr. Wasson recommended that the Art in Public Places Advisory Board be disbanded since it had not been active in some time and any future art could be determined by the City Commission. The City Commission discussed the item and additionally discussed the possibility of having an art festival in Aventura. City Manager Summary: It was the consensus of the City Commission to proceed with an Ordinance disbanding the Art in Public Places Advisory Board on the May Commission Meeting Agenda. Discussion of an art festival in Aventura will be placed on the next Commission Workshop Agenda. 5. Discussion: Requirement for Construction Dumpsters to be Covered at Times When Not in Use (City Manager): Mr. Wasson suggested that a requirement be established to require that construction dumpsters be covered at all times when not in use. Keven Klopp, Community Development Director, additionally distributed and reviewed various recommended "clean-up" items in the Code. The City Commission provided input on the items. Mrs. Horvath reported that the Charter Revision Commission would be reviewing the Charter in 2025 and could also suggest additional Code revisions at that time. City Manager Summary: It was the consensus of the City Commission to proceed with an Ordinance for the recommended "clean-up" items on the May Commission Meeting Agenda, including the requirement for dumpsters to be covered. 6. Update: Commission Liaison Meeting (Commissioner Dr. Marks): Commissioner Dr. Marks reported on the Commission Liaison Meeting held on February 29, 2024 including the following items: concept of a new school, the existing ACES building, hiring a Dean of Students, additional office space needed, and 2024 graduation ceremony. The City Commission discussed the item including options and locations for the schools, closing the deals with Gulfstream first, requesting Charter Schools USA to provide potential options for the City's schools, and bringing in additional experts on schools. Mr. Wasson reported on the concept of using mobile offices at the high school and the costs to do so. City Manager Summary: Approval of the plan for the specials at ACES will be placed on the April Governing Board Meeting Agenda. Charter Schools USA will also provide a presentation with potential options at the April Commission Workshop. Page 2 of 3 Aventura City Commission Regular Workshop Minutes—March 21, 2024 7. Discussion: City Email Policy (City Attorney): Mr. Meyers discussed the City's current email policy for elected officials allowing them to either receive their emails directly or for the emails to go through the City Clerk who would then forward them to the appropriate elected officials. He recommended that the policy be changed to require elected officials to receive their emails directly in lieu of going through the City Clerk, since some items they receive may be confidential. City Manager Summary: It was the consensus of the City Commission to change the email policy to require elected officials to receive their emails directly. 8. Discussion: Final Legislative Summary (City Attorney): Mr. Meyers reviewed the Final Legislative Summary dated March 14, 2024, as provided in the agenda. He also reported that 30 municipalities had joined the Form 6 (Financial Disclosure) litigation. The City Commission provided input throughout the review. City Manager Summary: This item was provided for informational purposes. Discussion of school chaplains will be placed on the April Commission Workshop if there is an update on the bill. US Supreme Court Decision — Social Media: Mr. Meyers distributed and reviewed a memorandum regarding an Analysis of US Supreme Court Decision on Social Media Communications. The City Commission provided comments on the item related to whether or not a public official may block a commenter on social media. City Manager Summary: This item was provided for informational purposes. The following additional items were discussed: Next City Manager: Mayor Weinberg noted that the City was not required to conduct a City Manager search due to the impending retirement of Mr. Wasson and requested input on Deputy City Manager Bryan Pegues to be selected as the next City Manager. City Manager Summary: It was the consensus of the City Commission to appoint Bryan Pegues as the next City Manager and for Mr. Pegues to negotiate a contract with Commissioner Joel and Mr. Meyers to be presented to the City Commission. 9. Adjournment: There being no further business to come before the City Commission, the meeting was adjourned by consensus at 10:40 a.m. Ellisa L. Horvath, MMC, City Clerk Approved by the City Commission on April 2, 2024. Page 3 of 3 CITY OF "ENTURA OFFICE OF THE CITY MANAGER MEMORANDUM TO: City Commission FROM: Ronald J. Wasson, City Manager (� DATE: March 29, 2024 SUBJECT: Resolution Declaring Property as Surplus April 2, 2024 City Commission Meeting Agenda RECOMMENDATION It is recommended that the City Commission adopt the attached Resolution declaring certain property 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. RJW/act Attachment CCO1011-24 CITY OF AVENTURA RESOLUTION NO. 2024- 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 FOR 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. 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 Amit Bloom Commissioner Rachel S. Friedland Commissioner Billy Joel Commissioner Dr. Linda Marks Commissioner Michael Stern Vice Mayor Paul A. Kruss Mayor Howard S. Weinberg City of Aventura Resolution No. 2024- PASSED AND ADOPTED this 2nd day of April, 2024. HOWARD S. WEINBERG, ESQ. MAYOR ATTEST: ELLISA L. HORVATH, MMC CITY CLERK APPROVED AS TO LEGAL SUFFICIENCY: ROBERT MEYERS CITY ATTORNEY WEISS SEROTA HELFMAN COLE + BIERMAN, P.L. Page 2 of 2 CITY OF "ENTURA POLICE DEPARTMENT MEMORANDUM TO: Ronald J. Wasson, City Manager FROM: Michael Bentolila, Chief of Police DATE: March 14, 2024 SUBJECT: Surplus Firearms I would like to have the items listed below, owned by the City of Aventura, declared Surplus Property as per City of Aventura APDP, Chapter 6, Subsection 5, Page 1, as these items have become inadequate for public purposes. Beretta Model 84 B36047Y Charter Arms Undercover 635090 Charter Arms .38 revolver 47317 FNS 40 GK00010777 Glock 17 YSV428 Glock 19 BCWE614 Glock 19 BGPM227 Glock 19 WGV489 Glock 19 SGY605 Glock 19 BDMG327 Glock 19 TKV825 Glock 19 BAZRO07 Glock 19 ACSV498 Glock 21 AWG798US Glock 22 Gen4 PCG447 Glock 26 BEDH939 Glock 26 BGHF879 Glock 26 BEUS401 Glock 26 BBTS296 Glock 27 CNF883US Glock 27 FAG048US Glock 27 BTFA731 Glock 30 KCP774 Glock 36 XLP272 Glock 43X BMGT845 Glock 43 BBZL023 Glock 43 ADXB334 Glock 43x BMDY180 Ruger LC9 320-84182 Sig Sauer P229 G-19161 Sig Sauer P229 I-23758 Sig Sauer P229 AM60347 Sig Sauer P320 5813153327 Smith & Wesson M&P Shield JDP8247 Smith & Wesson SD40VE FZN6156 Smith & Wesson SD40VE FWT1208 Smith & Wesson 337 CDB7850 Smith & Wesson M&P Bodyguard 38 CVF3142 BG38-1 Taurus PT11 TAW60215 Taurus Millennium pro TYC63025 Taurus G2C TLR74791 Walther PPQ FCF5538 CITY OF "ENTURA OFFICE OF THE CITY MANAGER MEMORANDUM TO: City Commission FROM: Ronald J. Wasson, City Manager C4-- DATE: March 29, 2024 SUBJECT: Disbursement of Police Federal Forfeiture Funds April 2, 2024 City Commission Meeting Agenda RECOMMENDATION It is recommended that the City Commission adopt the following Motion to expend funds from the Police Federal Forfeiture Funds: "Motion authorizing the appropriation of up to $7,550.98 for ScanWriter Excel Standard Workstation plus maintenance and $75,000.00 for Packetalk Diesel camera and ALPR trailer with 5-year warranty from the Police Federal Forfeiture Funds in accordance with the City Manager's Memorandum". If you have any questions, please feel free to contact me. RJW/act Attachment CC04009-24 CITY OF "ENTURA POLICE DEPARTMENT INTER OFFICE MEMORANDUM TO: Ronald J. Wasson, City Manager FROM: Michael Bentolila, Chief of Police DATE: March 29, 2024 SUBJECT: Use of Federal Forfeiture Funds The Federal Equitable Sharing Agreement (FESA), Section Vill allows for the use of federally forfeited funds for law enforcement. Section IX, A9 of the Federal Equitable Sharing agreement requires that the funds be expended only upon request of the Chief of Police to the governing body of the municipality and approval of the governing body. I am requesting City Commission approval for the expenditure of these monies for the purchase of: ScanWriter Excel Standard Workstation plus Maintenance - $7,550.98 Packetalk Diesel Camera and ALPR Trailer with 5 Year Warranty - $75,000.00 Summary ScanWriter - ScanWriter offers financial investigative tools to help us handle documents and case evidence without draining resources. It will assist our investigators in procuring actionable intelligence with proven and easy-to-interpret data to help investigate financial fraud and illegal transactions. Packetalk - This video/ALPR trailer includes capabilities that enhance public safety and operational effectiveness through the use of intelligent video solutions, software analytics, and wireless technologies. This patented product provides a comprehensive data-driven view of our environment and the means to quickly adjust based on the analysis of the data in real-time. CITY OF "ENTURA DEPARTMENT OF PUBLIC WORKS & TRANSPORTATION MEMORANDUM TO: City Commission FROM: Ronald J. Wasson, City Manager er BY: Jake Ozyman, PE, Public Works & Transportation Director DATE: March 29, 2024 SUBJECT: Recommendation to Award for RFQ No. 2023-11-01 Continuing Professional Services April 2, 2024 City Commission Meeting Agenda RECOMMENDATION It is recommended that the City Commission authorize the City Manager to negotiate a contract with the top two (2) highest ranked firms in eight (8) categories for continuing professional services. BACKGROUND Pursuant to Florida Statutes §287.055, the Consultants' Competitive Negotiation Act ("CCNA"), as may be amended, on November 13, 2023 the City requested qualifications from qualified and experienced firms to provide Continuing Professional Services for the City under a continuing services contract. To qualify for the award, prospective Proposers were required to: A. Be professionally licensed to practice in the State of Florida and have a resident office in Miami-Dade, Broward, or Palm Beach County. B. Have been in continuous operation for a minimum of the past ten (10) years from the date of the RFQ. C. Have a clean judicial record and references. D. Demonstrate financial stability. On the date of the submittal deadline, January 22, 2024, twenty-three (23) respondents submitted qualifications in response to this solicitation. A total of fifty-nine (59) submittals were received for the eight (8) categories. City Commission March 29, 2024 Page 2 of 3 Staff performed a due diligence review of the submittals and found all proposals responsive,with no material defects in the Proposers'qualifications nor in their submittals. An Evaluation committee was appointed, comprised of the following members: 1. Ronald J. Wasson, City Manager 2. Bryan Pegues, Deputy City Manager 3. Keven R. Klopp, Community Development Director 4. Jake Ozyman, Public Works & Transportation Director The Evaluation Committee was provided with the proposals and on March 12, 2024, met to discuss, review, score and rank the firms. A ranking of the top two (2) firms in each category was established as follows: Category A: Architecture 1. Zyscovich Architects 2. R.E. Chisholm Architects, Inc. Category B: Civil Engineering 1. Kimley-Horn and Associates, Inc. 2. GIT Consulting LLC & Chen Moore and Associates (Tie) Category C: Construction/Project Management 1. Kimley-Horn and Associates, Inc. 2. CES Consultants, Inc. Category D: Landscape Architecture 1. Kimley-Horn and Associates, Inc. 2. KCI Technologies, Inc. Category E: Surveying and Mapping 1. KCI Technologies, Inc. 2. CTS Engineering, Inc. Category F: Stormwater Drainage Engineering 1. Kimley-Horn and Associates, Inc. 2. GIT Consulting LLC Category G: Traffic and Transportation Engineering 1. Kimley-Horn and Associates, Inc. 2. The Corradino Group, Inc. Category H: Urban Design 1. Zyscovich Architects 2. R.E. Chisholm Architects. Inc. City Commission March 29, 2024 Page 3 of 3 Based on the Evaluation Committee's established rankings, it is recommended that the City Commission authorize the City Manager to negotiate a contract with the top two (2) highest ranked firms in each of the eight categories for continuing professional services as listed below in alphabetical order- 1. CES Consultants, Inc. 2. Chen Moore and Associates 3. CTS Engineering, Inc. 4. GIT Consulting, LLC 5. KCI Technologies, Inc. 6. Kimley-Horn and Associates, Inc. 7. R.E. Chisholm Architects. Inc. 8. The Corradino Group, Inc. 9. Zyscovich Architects If an agreement cannot be reached with the top-ranked firms, the City Manager is authorized to negotiate with the next highest ranked firm until an agreement, in the best interest of the City, is reached. Once the agreements, including rates, are negotiated, they will be presented to the City Commission for final approval. JO/gf Attachments J024007 CITY OF AVENTURA RESOLUTION NO. 2024- A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, SELECTING VARIOUS CONSULTANTS PURSUANT TO REQUEST FOR QUALIFICATIONS NO. 2023-11-01 CONTINUING PROFESSIONAL SERVICES; PROVIDING FOR AUTHORIZATION; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Aventura (the "City") issued a Request for Qualifications No. 2023-11-01 for Continuing Professional Services (the "RFQ") relating to architecture and engineering services ("Services"); and WHEREAS, the RFQ sought qualifications for the Services in eight different categories; and WHEREAS, twenty-three firms submitted their qualifications by the RFQ deadline; and WHEREAS, on March 12, 2024, an Evaluation Committee appointed by the City Manager short-listed firms and ranked the top two consultants in each of the eight different categories, as reflected on Exhibit "A" attached hereto and incorporated herein (collectively, the "Consultants"); and WHEREAS, the City Manager recommends that the City Commission select the Consultants to perform the Services; and WHEREAS, the City Commission desires to select the Consultants as the most qualified firms for the Services and authorizes the City Manager to negotiate agreements with each of the Consultants, for approval by the City Commission at a future meeting; and WHEREAS, the City Commission finds that this Resolution is in the best interest and welfare of the residents of the City. NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA: Section 1. That each of the above-stated recitals are hereby adopted, confirmed, and incorporated herein. Section 2. That the City Commission hereby selects the Consultants for the Services. Section 3. That the City Commission hereby authorizes the City Manager, to negotiate agreements with the Consultants for the Services, which agreements shall be presented to the City Commission for approval at a future meeting. If an agreement City of Aventura Resolution No. 2024- cannot be reached with the top-ranked Consultants, the City Manager is authorized to negotiate and execute an agreement with the next highest ranked firm(s), until an agreement in the best interest of the City is reached. Section 4. That 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 Amit Bloom Commissioner Rachel S. Friedland Commissioner Billy Joel Commissioner Dr. Linda Marks Commissioner Michael Stern Vice Mayor Paul A. Kruss Mayor Howard S. Weinberg PASSED AND ADOPTED this 2t" day of April, 2024. HOWARD S. WEINBERG, ESQ. MAYOR ATTEST: ELLISA L. HORVATH, MMC CITY CLERK APPROVED AS TO LEGAL SUFFICIENCY: ROBERT MEYERS CITY ATTORNEY WEISS SEROTA HELFMAN COLE + BIERMAN, P.L. Page 2 of 2 EXHIBIT A TOP RANKED CONSULTANTS PURSUANT TO REQUEST FOR QUALIFICATIONS NO. 2023-11-01 CONTINUING PROFESSIONAL SERVICES RELATING TO ARCHITECTURE AND ENGINEERING SERVICES Category A: Architecture 1. Zyscovich Architects 2. R.E. Chisholm Architects. Inc. Category B: Civil Engineering 1. Kimley-Horn and Associates, Inc. 2. GIT Consulting LLC & Chen Moore and Associates (Tie) Category C: Construction/Proiect Management 1. Kimley-Horn and Associates, Inc. 2. CES Consultants, Inc. Category D: Landscape Architecture 1. Kimley-Horn and Associates, Inc. 2. KCI Technologies, Inc. Category E: Surveying and Mapping 1. KCI Technologies, Inc. 2. CTS Engineering, Inc. Category F: Stormwater Drainage Engineering 1. Kimley-Horn and Associates, Inc. 2. GIT Consulting, LLC Category G: Traffic and Transportation Engineering 1. Kimley-Horn and Associates, Inc. 2. The Corradino Group, Inc. Category H: Urban Design 1. Zyscovich Architects 2. R.E. Chisholm Architects. Inc. CITY OF "ENTURA OFFICE OF THE CITY MANAGER MEMORANDUM TO: City Commission FROM: Ronald J. Wasson, City Manager DATE: March 29, 2024 SUBJECT: Agreement with FDOT and the City on Behalf of IKE Smart City, LLC for the Installation, Operation and Maintenance of Wayfinding Kiosk Devices April 2, 2024 City Commission Meeting Agenda RECOMMENDATION It is recommended that the City Commission adopt the attached Resolution authorizing the City Manager to enter into an agreement with the Florida Department of Transportation (FDOT), on behalf of IKE Smart City, LLC (IKE) to install, operate and maintain wayfinding kiosks in and around the City. RJW/act Attachment CCO1012-24 CITY OF AVENTURA RESOLUTION NO. 2024- A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, APPROVING A MASTER MAINTENANCE AGREEMENT FOR WAYFINDING KIOSK DEVICES WITH THE FLORIDA DEPARTMENT OF TRANSPORTATION IN CONNECTION WITH THE INSTALLATION OF OUTDOOR DIGITAL MESSAGE BOARD KIOSKS WITHIN THE CITY OF AVENTURA; PROVIDING FOR IMPLEMENTATION; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, IKE Smart City, LLC ("IKE") designs and implements outdoor media by providing interactive digital touchscreens which contain valuable information at convenient locations to users within a given municipality; and WHEREAS, IKE operates these interactive kiosks in a number of major cities throughout the United States and the State of Florida, including the cities of Coral Gables and Miami; and WHEREAS, in order for IKE kiosks to be installed on Florida Department of Transportation ("FDOT") rights-of-way in the City of Aventura (the "City"), the City must execute a Master Maintenance Memorandum of Agreement ("MMOX) with FDOT, attached hereto as Exhibit "A"; and WHEREAS, the City Manager recommends that the City Commission approves the MMOA in order to proceed with the installation and operation of these smart kiosks for the benefit of the City and its residents; and WHEREAS, the City Commission finds that this Resolution is in the best interest and welfare of the residents of the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA: Section 1. That each of the above-stated recitals is hereby adopted, confirmed, and incorporated herein. Section 2. That the City Commission hereby approves the MMOA with the Florida Department of Transportation for wayfinding kiosk devices. Section 3. That the City Commission hereby authorizes the City Manager to take the necessary steps to implement this Resolution and finalize the arrangements with IKE Smart City, LLC with respect to the number of kiosks and location of said kiosks within the City of Aventura. City of Aventura Resolution No. 2024- Section 4. That 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 Amit Bloom Commissioner Rachel S. Friedland Commissioner Billy Joel Commissioner Dr. Linda Marks Commissioner Michael Stern Vice Mayor Paul A. Kruss Mayor Howard S. Weinberg PASSED AND ADOPTED this 2nd day of April, 2024. HOWARD S. WEINBERG, ESQ. MAYOR ATTEST: ELLISA L. HORVATH, MMC CITY CLERK APPROVED AS TO LEGAL SUFFICIENCY: ROBERT MEYERS CITY ATTORNEY WEISS SEROTA HELFMAN COLE + BIERMAN, P.L. Page 2 of 2 STATE OF FLORIDA, DEPARTMENT OF TRANSPORTATION MASTER MAINTENANCE MEMORANDUM OF AGREEMENT FOR WAYFINDING KIOSK DEVICES WITH THE CITY OF AVENTURA This AGREEMENT, entered into on , 2024, by and between the State of Florida, Department of Transportation, an agency of the State of Florida, hereinafter called the DEPARTMENT, and the City of Aventura, a municipal corporation of the State of Florida, hereinafter called the CITY, and collectively referred to as the PARTY/PARTIES. RECITALS: A. The DEPARTMENT has jurisdiction over the following State Roads: Biscayne Boulevard, and B. Pursuant to that certain IKE Agreement dated October 19, 2023 (the "IKE Agreement"), attached hereto as Exhibit"A", between the CITY and IKE Smart City, LLC, a Delaware limited liability company, hereinafter called IKE, IKE intends to install, operate, and maintain wayfinding kiosks in and around the CITY, which wayfinding kiosks are powered by electricity, hereinafter called KIOSKS; and C. The CITY, on behalf of IKE, desires to obtain approval from the DEPARTMENT to install, operate, and maintain KIOSKS on DEPARTMENT owned right-of-way(RW) for State Roads which the DEPARTMENT has jurisdiction over, collectively referred to as the PROJECT LIMITS as described in Exhibit"B", and D. The DEPARTMENT will consider requests and may, but is not obligated to, grant approval to the CITY to install, operate, and maintain KIOSKS for the transportation purpose of providing wayfinding devices for pedestrians and bicyclists; and E. The DEPARTMENT has determined that the KIOSKS are not "sign(s)" as that word is used in Section 337.407 of the Florida Statutes and, as a result,the KIOSKS are not subject to the prohibition set forth in Section 337.407(1) of the Florida Statutes; and F. DEPARTMENT approval is authorization to the CITY to install, operate, and maintain KIOSKS and does not transfer any property rights to the CITY or IKE; and G. The PARTIES to this AGREEMENT mutually recognize the need for entering into this agreement designating and setting forth the responsibilities of each PARTY with regards to the installation, operations, and maintenance of the KIOSKS installed within the PROJECT LIMITS and further the PARTIES acknowledge this AGREEMENT was drafted with equal participation by both PARTIES; therefore, no term or condition of this AGREEMENT shall be strictly interpreted in favor of or against either PARTY; and Maintenance Memorandum of Agreement between Florida Department of Transportation and City of Aventura(Master Kiosk Agreement) Page 1 of 16 H. The PARTIES agree that the execution of this AGREEMENT constitutes an assignment of all installation, operations, and maintenance responsibilities pertaining to all KIOSKS within the PROJECT LIMITS to the CITY. L The CITY, by Resolution No. , dated attached hereto as Exhibit"C", which by reference shall become a part of this AGREEMENT, desires to enter into this AGREEMENT, and authorizes its officers to do so. NOW, THEREFORE, for and in consideration of the mutual benefits contained herein and other good and valuable consideration, the PARTIES covenant and agree as follows: 1. RECITALS The recitals in this AGREEMENT are true and correct and are incorporated herein by reference and made a part hereof. 2. INSTALLATION a. The CITY will install all KIOSKS within the PROJECT LIMITS per the IKE Agreement dated October 19, 2023, between the CITY and IKE and this AGREEMENT. In case of conflict, this AGREEMENT prevails. b. The CITY will install all KIOSKS within the PROJECT LIMITS in urban, high pedestrian volume areas along areas of roadways where the speed limit does not exceed 45 miles per hour at the time of installation. C. The CITY will install all KIOSKS within the PROJECT LIMITS to provide a clear, unobstructed pedestrian path that is a minimum of six (6) feet in width. d. The CITY will install all KIOSKS within the PROJECT LIMITS at the maximum practical distance from the face of curb. The CITY will provide a minimum of six (6) feet from the face of curb to the KIOSK edge closest to the roadway within the PROJECT LIMITS and will increase this distance as needed to align the KIOSKS with existing features in the immediate vicinity of the KIOSKS such as utility poles, trees, etc. so that a pedestrian weaving pattern is not created. The DEPARTMENT will consider written requests from the CITY for distances less than six (6) feet if aligning the KIOSK edge closest to the roadway with existing features in the immediate vicinity of the KIOSKS such as utility poles,trees, etc. eliminates a pedestrian weaving pattern; approval or denial of said requests by the DEPARTMENT shall be in writing. A Design Variation must be submitted to the DEPARTMENT if the KIOSK is less than six (6) feet from the face of the curb. e. The CITY will install all KIOSKS within the PROJECT LIMITS a minimum distance of 15 (fifteen) feet from any fire hydrant or accessible parking space. Maintenance Memorandum of Agreement between Florida Department of Transportation and City of Aventura(Master Kiosk Agreement) Page 2 of 16 f. The CITY will install all KIOSKS within the PROJECT LIMITS to not create any horizontal sight distance issues or other driver, bicyclist, or pedestrian sight obstructions. g. The CITY will install all KIOSKS within the PROJECT LIMITS in accordance with the DEPARTMENT's Standard Specifications for Road and Bridge Construction applicable at the time of the installations. h. The CITY will install utilities for all KIOSKS within the PROJECT LIMITS without open cutting or trenching the sidewalk and pavement. The CITY will remove and replace sidewalks impacted by KIOSK installation from sidewalk joint to sidewalk joint. i. The CITY will install all KIOSKS within the PROJECT LIMITS without creating horizontal walking surface gaps greater than a half (1/2) of an inch including gaps between the interface (perimeter) of the KIOSKS and the walking surface the KIOSKS reside on. If a separate `pedestal' foundation is used, the interface of the foundation with the walking surface will be either flush or will extend a minimum of six inches above the walking surface to function as a detectable curb delineating the walking surface from the foundation `pedestal'. In no cases shall the foundation or level landing configuration impinge upon an unobstructed, clear side reach of ten inches from the edge of the level landing to the controls. j. The CITY will install all KIOSKS within the PROJECT LIMITS without creating vertical sidewalk differentials greater than a quarter (1/4) of an inch including differentials between the interface (perimeter) of the KIOSKS and the walking surface the KIOSKS reside upon. k. The CITY will install all KIOSKS securely to their foundations and will provide a clear opening between the KIOSKS and the sidewalks to facilitate cleaning of the sidewalks and preclude the accumulation of litter and debris. 1. The CITY will install all KIOSKS with a minimum 30 inch x 48 inch level landing directly in front of the operational controls with the 48 inch dimension centered on the controls. A level landing is considered a 2% maximum surface slope in all directions. M. The CITY will install all KIOSKS within the PROJECT LIMITS with screens that do not exceed 18 square feet in size and only provide messages on the front and back of the KIOSKS; further the KIOSKS themselves shall not be lit. n. The CITY will install all KIOSKS within the PROJECT LIMITS with light sensors allowing the screens to automatically dim brightness during nighttime hours. Maintenance Memorandum of Agreement between Florida Department of Transportation and City of Aventura(Master Kiosk Agreement) Page 3 of 16 o. The CITY will install all KIOSKS within the PROJECT LIMITS with physical and cyber hacking security to prevent displays or messages which are not intended and approved by the CITY and IKE. p. The CITY will install all KIOSKS within the PROJECT LIMITS with remote monitoring and control capability so any compromise in security can be shut down immediately. 3. OPERATIONS AND MAINTENANCE a. The CITY will operate and maintain all KIOSKS, as long as the KIOSKS remain in place, to ensure safety, aesthetics, and function. b. The CITY will operate and maintain all KIOSKS within the PROJECT LIMITS in accordance with the terms of the IKE Agreement dated October 19, 2023, between the CITY and IKE and this AGREEMENT. In case of conflict, this AGREEMENT prevails. C. The CITY will allow the DEPARTMENT to have input on and utilize the CITY's Directed Content for KIOSKS installed within the PROJECT LIMITS per the terms of the IKE Agreement dated October 19, 2023, between the CITY and IKE. d. The CITY will operate and maintain all KIOSKS to ensure screens automatically dim brightness during nighttime hours. e. The CITY will operate and maintain all KIOSKS within the PROJECT LIMITS to ensure messages do not display chasing, flashing, or moving lighting. f. The CITY will operate all KIOSKS within the PROJECT LIMITS to provide message content that is of broad community interest and significance, approved by the CITY, and consistent with the IKE Agreement dated October 19,2023,between the CITY and IKE. Message content will comply with the message content-related provisions of the DEPARTMENT'S "Sponsorship Program Policy" (dated February 6, 2014) or any future message content policy that replaces it. The CITY will respond to and resolve all issues, comments, and questions relating to message content, regardless of source, to the satisfaction of the DEPARTMENT. g. The CITY will operate and maintain all KIOSKS within the PROJECT LIMITS to ensure they are secure from physical and cyber hacking resulting in displays or messages which are not intended and can be monitored and controlled remotely to immediately shut down any compromise in security. The CITY will immediately shut down any displays or messages not intended and approved by the CITY and IKE. Maintenance Memorandum of Agreement between Florida Department of Transportation and City of Aventura(Master Kiosk Agreement) Page 4 of 16 h. The CITY will operate and maintain all KIOSKS within the PROJECT LIMITS to ensure all horizontal walking surface gaps in the immediate vicinity of installed KIOSKS are not greater than a half(1/2) of an inch including gaps between the interfaces(perimeters)of the KIOSKS and the walking surface the KIOSKS reside on. i. The CITY will operate and maintain all KIOSKS within the PROJECT LIMITS to ensure all walking surface vertical differentials are not greater than a quarter (1/4) of an inch in depth including vertical differentials between the interfaces (perimeters) of the KIOSKS and walking surface the KIOSKS reside on. j. The CITY will remove and dispose of litter within a 10- foot radius around each KIOSK within the PROJECT LIMITS during the daily visits to each KIOSK. k. The CITY will submit Lane Closure Requests to the DEPARTMENT when maintenance activities require the closure of a traffic lane in the DEPARTMENT's right-of-way. Lane closure requests shall be submitted through the District Six Lane Closure Information System, to the DEPARTMENT's area Permit Manager in accordance with the District Six Lane Closure Policy, as may be amended from time to time. 1. The CITY will provide the DEPARTMENT a report every January with the total yearly (12-month period) usage for each of the KIOSKS. The report shall include the number of impressions gathered at each KIOSK installed within the PROJECT LIMITS, the number of hours the KIOSK is not operational, the number and duration of public service messages, and the total number of incidents/accidents recorded/reported that involves the KIOSK. M. The CITY will maintain a service log of all operations and maintenance activities within the PROJECT LIMITS that sets forth the date of the activity, the KIOSK that was maintained, and the work that was performed. n. The CITY is responsible for obtaining copies of all applicable rules, regulations, policies, procedures, guidelines, and manuals, as may be amended from time to time. 4. INSTALLATION. OPERATIONS. AND MAINTENANCE DEFICIENCIES a. If at any time and for any reason it shall come to the attention of the DEPARTMENT that the CITY's contractual obligations as established herein are not being complied with pursuant to the terms of this AGREEMENT, the DEPARTMENT may, at its option, issue a written notice, delivered to the Office of the CITY MANAGER, to notify the CITY of the deficiencies. If the deficiencies are safety related or displayed messages related, the CITY shall immediately correct the cited deficiencies. The CITY shall correct cited deficiencies which are not safety related or displayed messages related in Maintenance Memorandum of Agreement between Florida Department of Transportation and City of Aventura(Master Kiosk Agreement) Page 5 of 16 accordance with paragraph 13.a of the IKE Agreement dated October 19, 2023, between the CITY and IKE. b. The CITY will provide the DEPARTMENT with an assessment of the cause of said deficiencies and provide written remedial measures that will be taken to prevent reoccurrence. If said deficiencies are not corrected to the satisfaction of the DEPARTMENT,the DEPARTMENT may, at its option, correct any deficiencies or non-compliance and/or remove the KIOSKS at the DEPARTMENT's sole discretion and seek the costs of correcting the deficiencies or KIOSK removal from the CITY. 5. NOTICES All notices, requests, demands, consents, approvals, and other communication which are required to be served or given hereunder, shall be in writing and shall be sent by email or certified U.S. mail, return receipt requested, postage prepaid, addressed to the PARTY to receive such notices as follows: To the DEPARTMENT: Florida Department of Transportation 1000 Northwest 111 Avenue, Room 6205 Miami, Florida 33172-5800 Attn: District Maintenance Engineer email renato.marrero@dot.state.fl.us To the CITY: City of Aventura Government Center 19200 W. Country Club Drive Aventura, FL 33180 Attn: Bryan Pegues, Deputy City Manager Email: bpegues@cityofaventura.com With a copy to: Weiss Serota Helfman Cole + Bierman, P.L. 2255 Glades Road, Suite 200E Boca Raton, FL 33431 Attn: Robert Meyers, City Attorney rmeyers@wsh-law.com Notices sent by email will be deemed to have been received by the end of one (1) business day after being sent unless a reply of actual receipt is provided. Notices sent by certified U.S. mail shall be deemed to have been received by the end of five(5)business days from the proper sending thereof unless proof of prior actual receipt is provided. 6. REMOVAL. RELOCATION OR ADJUSTMENT OF THE KIOSKS a. The CITY will remove, relocate, or adjust at any time in the future KIOSKS and restore the area of the removed, relocated, or adjusted KIOSKS within the PROJECT LIMITS to a standard concrete sidewalk, in accordance with the Maintenance Memorandum of Agreement between Florida Department of Transportation and City of Aventura(Master Kiosk Agreement) Page 6 of 16 DEPARTMENT's guidelines, standards, specifications, and procedures, at the CITY's expense, for the construction, repair, improvement, maintenance, safe and efficient operation, alteration, or relocation of all, or any part of a state road, at the DEPARTMENT's sole discretion and satisfaction. b. The DEPARTMENT will notify the CITY a minimum of 60 calendar days prior to any DEPARTMENT-directed relocation, removal, or adjustment to allow the CITY time to coordinate the relocation, removal, or adjustment. If the KIOSKS are not relocated, removed, or adjusted in a timely manner as determined by the DEPARTMENT, then the DEPARTMENT will remove the KIOSKS at the CITY's expense. C. The CITY's operations and maintenance responsibilities will survive any relocation or adjustment, as long as the KIOSKS remain within the PROJECT LIMITS. 7. AUTHORIZATION TO INSTALL. OPERATE. AND MAINTAIN a. The CITY will submit draft KIOSK installation plans and details and schedules for each proposed location within the PROJECT LIMITS to the DEPARTMENT. The DEPARTMENT will review the draft KIOSK installation plans and details and schedules for compliance with the requirements of this AGREEMENT and review upcoming DEPARTMENT projects. The DEPARTMENT and CITY will discuss any comments, questions, and concerns within thirty (30) calendar days and meet on- site if requested by either the DEPARTMENT or CITY. b. After the on-site meeting, if requested, and resolution of any comments, questions, and concerns, the CITY will submit a General Use Permit application for each proposed KIOSK location or relocation to the DEPARTMENT. The General Use Permit application must include installation plans and details signed and sealed by a Professional Engineer registered in the State of Florida and installation schedules showing the requirements of this AGREEMENT are satisfied. C. The DEPARTMENT will review the General Use Permit application, and if all requirements of this AGREEMENT are satisfied, approve the General Use Permit application for a term of four (4) years. d. The CITY will install the KIOSK within 180 calendar days of DEPARTMENT approval of the General Use Permit. e. At the end of the four (4) year term, the CITY may submit another General Use Permit application for any proposed KIOSK locations to the DEPARTMENT. The DEPARTMENT will review the General Use Permit application, and if all requirements of this AGREEMENT have been satisfied and if the KIOSK continues to serve the transportation purpose of providing a wayfinding device for Maintenance Memorandum of Agreement between Florida Department of Transportation and City of Aventura(Master Kiosk Agreement) Page 7 of 16 pedestrians and bicyclists as indicated by increasing or consistent impressions gathered at the KIOSK, approve the General Use Permit application for a term of four (4) years. In the event that impressions decrease at a KIOSK, the CITY and DEPARTMENT will work in good faith to determine if the KIOSK should be removed, be relocated, or remain. The CITY may continue to submit for General Use Permits until the date this AGREEMENT ends. f. DEPARTMENT authorized KIOSK locations will be incorporated into this AGREEMENT by a supplemental agreement between the PARTIES, in the form attached hereto as Exhibit"D",to be executed by the authorized signatories of this AGREEMENT, or their designees. 8. TERM a. The effective date of this AGREEMENT will commence upon execution by the PARTIES. b. The term of this AGREEMENT consists of an initial term and two possible renewal terms. C. The initial term of this AGREEMENT will commence upon the effective date and continue for ten (10) years. d. At the end of the initial term, the first possible renewal term will commence and continue for five (5) years. The DEPARTMENT will notify the CITY in writing at least one hundred twenty(120) calendar days prior to the expiration of the initial term if the DEPARTMENT does not wish to renew this AGREEMENT. Within that one hundred twenty (120) calendar day period, the CITY and the DEPARTMENT will work in good faith to remedy any concerns causing the DEPARTMENT to consider non-renewal. In the event that such considerations are not remedied,the DEPARTMENT may elect in its sole discretion to not renew the AGREEMENT. e. If applicable, at the end of the first renewal term, the second possible renewal term will commence and continue for five (5) years. The DEPARTMENT will notify the CITY in writing at least one hundred twenty (120) calendar days prior to the expiration of the initial term if the DEPARTMENT does not wish to renew. Within that one hundred twenty (120) calendar day period, the CITY and the DEPARTMENT will work in good faith to remedy any concerns that are causing the DEPARTMENT to consider non-renewal. In the event that such considerations are not remedied,the DEPARTMENT may elect in its sole discretion to not renew the AGREEMENT. f. No additional General Use Permits shall be approved when this AGREEMENT ends. General Use Permits approved prior to the end of this AGREEMENT will survive until the term of each General Use Permit ends. Prior to the end of each Maintenance Memorandum of Agreement between Florida Department of Transportation and City of Aventura(Master Kiosk Agreement) Page 8 of 16 General Use Permit, the CITY will, at its sole cost and expense, remove the KIOSK and restore the area to a standard concrete sidewalk, in accordance with the DEPARTMENT'S guidelines, standards, and procedures, and to the satisfaction of the DEPARTMENT. 9. TERMINATION a. The DEPARTMENT may terminate this AGREEMENT upon sixty(60)calendar days written advance notice if the CITY fails to perform its duties under this AGREEMENT or fails to respond to and correct the reasons for the termination stated in the notice. b. Both PARTIES may mutually agree to terminate this AGREEMENT. An agreement to terminate shall be valid only if made in writing and executed with the same formalities as this AGREEMENT. C. In accordance with Section 287.058(1)(c), Florida Statutes, the DEPARTMENT may unilaterally cancel this AGREEMENT if the CITY refuses to allow public access to any or all documents, papers, letters, or other materials made or received by the CITY pertinent to this AGREEMENT unless the records are exempt from Section 24(a) of Article I of the State Constitution and Section 119.07(1), of the Florida Statutes. d. Prior to the effective date of termination of the AGREEMENT pursuant to this Section, the CITY will, at its sole cost and expense, remove all KIOSKS and restore the area to a standard concrete sidewalk, in accordance with the DEPARTMENT'S guidelines, standards, and procedures, and to the satisfaction of the DEPARTMENT. Notwithstanding the foregoing, General Use Permits approved prior to the end of this AGREEMENT will survive until the term of each General Use Permit ends. 10. GENERAL TERMS a. E-Verify The CITY will: i. Utilize the U.S. Department of Homeland Security's E-Verify system to verify the employment eligibility of all new employees hired by the Vendor/Contractor during the term of the contract; and ii. Expressly require any subcontractors performing work or providing services pursuant to the state contract to likewise utilize the U.S. Department of Homeland Security's E-Verify system to verify the Maintenance Memorandum of Agreement between Florida Department of Transportation and City of Aventura(Master Kiosk Agreement) Page 9 of 16 employment eligibility of all new employees hired by the subcontractor during the contract term. (Executive Order Number 2011-02) The CITY will insert the E-Verify clause into any contract entered into by the CITY with vendors or contractors hired by the CITY for purposes of performing its duties under this AGREEMENT. b. This writing embodies the entire AGREEMENT and understanding between the PARTIES hereto and there are no other agreements and understanding, oral or written, with reference to the subject matter hereof that are not merged herein and superseded hereby. C. This AGREEMENT shall not be transferred or assigned, in whole or in part, without the prior written consent of the DEPARTMENT. d. This AGREEMENT shall be governed by and constructed in accordance with the laws of the State of Florida. Any provisions of this AGREEMENT found to be unlawful or unenforceable is severable and will not affect the validity of the remaining portions of the AGREEMENT. e. The venue for any and all actions arising out of or in connection with the interpretation, validity, performance or breach of this AGREEMENT lies exclusively in a state court of proper jurisdiction in Leon County, Florida. f. A modification or waiver of any of the provisions of this AGREEMENT shall be effective only if made in writing and executed with the same formality as this AGREEMENT. g. The section headings contained in this AGREEMENT are for reference purposes only and do not affect the meaning or interpretation hereof. h. No term or provision of this AGREEMENT shall be interpreted for or against either PARTY because the PARTY or its legal representative drafted the provision. i. The DEPARTMENT is a state agency, self-insured and subject to the provisions of Section 768.28, Florida Statutes, as may be amended from time to time. Nothing in this AGREEMENT shall be deemed or otherwise interpreted as waiving the DEPARTMENT's sovereign immunity protections, or as increasing the limits of liability as set forth in Section 768.28, Florida Statutes. j. This AGREEMENT shall not be construed as in any way establishing a partnership, joint venture, express or implied agency, or employer employee relationship between the DEPARTMENT, the CITY, and IKE. Maintenance Memorandum of Agreement between Florida Department of Transportation and City of Aventura(Master Kiosk Agreement) Page 10 of 16 11. INDEMNIFICATION a. Subject to Section 768.28, Florida Statutes, as may be amended from time to time, the CITY shall promptly indemnify, defend, save and hold harmless the DEPARTMENT, its officers, agents, representatives and employees from any and all losses, expenses, fines, fees, taxes, assessments, penalties, costs, damages, judgments, claims, demands, liabilities, attorneys fees (including regulatory and appellate fees), and suits of any nature or kind whatsoever caused by, arising out of, or related to the CITY's exercise or attempted exercise of its responsibilities as set out in this AGREEMENT, including but not limited to, any act, action, neglect or omission by the CITY, its officers, agents, employees, contractors, or representatives in any way pertaining to this AGREEMENT, whether direct or indirect, except that neither the CITY nor any of its officers, agents, employees or representatives will be liable under this provision for damages arising out of injury or damages directly caused or resulting from the sole negligence of the DEPARTMENT. b. The CITY's obligation to indemnify, defend and pay for the defense of the DEPARTMENT, or at the DEPARTMENT's option, to participate and associate with the DEPARTMENT in the defense and trial of any claim and any related settlement negotiations, shall be triggered immediately upon the CITY's receipt of the DEPARTMENT's notice of claim for indemnification. The notice of claim for indemnification shall be deemed received if the DEPARTMENT sends the notice in accordance with the formal notice mailing requirements set forth in Section 5 of this AGREEMENT. The DEPARTMENT's failure to notify the CITY of a claim shall not release the CITY of the above duty to defend and indemnify the DEPARTMENT. C. The CITY shall pay all costs and reasonable attorney's fees related to this obligation and its enforcement by the DEPARTMENT. The indemnification provisions of this section shall survive termination or expiration of this AGREEMENT, but only with respect to those claims that arose from acts or circumstances which occurred prior to termination or expiration of this AGREEMENT. d. The CITY's evaluation of liability or its inability to evaluate liability shall not excuse the CITY's duty to defend and indemnify the DEPARTMENT under the provisions of this section. Only an adjudication or judgment, after the highest appeal is exhausted, specifically finding the DEPARTMENT was solely negligent shall excuse performance of this provision by the CITY. 12. COUNTERPARTS AND ELECTRONIC SIGNATURES This AGREEMENT may be executed in counterparts, each of which shall be an original as against either PARTY whose signature appears thereon, but all of which taken together shall constitute but one and the same instrument. An executed facsimile or electronic scanned copy of Maintenance Memorandum of Agreement between Florida Department of Transportation and City of Aventura(Master Kiosk Agreement) Page 11 of 16 this AGREEMENT shall have the same force and effect as an original. The PARTIES shall be entitled to sign and transmit an electronic signature on this AGREEMENT(whether by facsimile, PDF or other email transmission), which signature shall be binding on the PARTY whose name is contained therein. Any PARTY providing an electronic signature agrees to promptly execute and deliver to the other PARTIES an original signed AGREEMENT upon request. IN WITNESS WHEREOF, the PARTIES hereto have caused these presents to be executed the day and year first above written. CITY OF AVENTURA: STATE OF FLORIDA, DEPARTMENT OF TRANSPORTATION: BY: BY: Ronald J. Wasson, City Manager District Director of Transportation Operations (SEAL) ATTEST: ATTEST: BY: Ellisa L. Horvath, MMC Executive Secretary City Clerk LEGAL REVIEW: BY: BY: Robert Meyers, City Attorney District Chief Counsel Weiss Serota Helfman Cole + Bierman, P.L. Maintenance Memorandum of Agreement between Florida Department of Transportation and City of Aventura(Master Kiosk Agreement) Page 12 of 16 EXHIBIT "A" IKE AGREEMENT DATED OCTOBER 19, 2023 BETWEEN THE CITY OF AVENTURA AND IKE SMART CITY, LLC To be herein incorporated. Maintenance Memorandum of Agreement between Florida Department of Transportation and City of Aventura(Master Kiosk Agreement) Page 13 of 16 INTEGRATION AGREEMENT FOR THE CITY OF AVENTURA DIGITAL COMMUNITY KIOSKS BETWEEN THE CITY OF AVENTURA,FLORIDA AND IKE SMART CITY, LLC STATE OF FLORIDA § COUNTY OF MIAMI-DADE § This Integration Agreement (the "Agreement") is entered into this day of Odd bl , 2023 (the "Effective Date") by and between the City of Aventura, Florida, a Florida municipal corporation("City"), and IKE Smart City, LLC("IKE"),both of which may be referred to herein collectively as the"Parties." The purpose of the Agreement is to permit the installation and operation of, and the display of Advertisements on, at least fifteen (15) IKE Kiosks at various Locations within the City, all as more particularly described in and in accordance with the terms of the IKE Agreement, attached hereto as Exhibit A and incorporated herein by reference.In the event of conflict between the terms of this Agreement and the terms of the IKE Agreement, the IKE Agreement shall govern and control. Capitalized terms used herein and not defined shall have the meaning ascribed to them in the IKE Agreement. The Parties hereto severally and collectively agree, and by the execution hereof are bound,to the mutual obligations herein contained and to the performance and accomplishment of the tasks hereinafter described. 1.0 CONTRACT DOCUMENTS The terms and conditions for performance and payment of compensation for this Agreement are set forth in the following contract documents, true and correct copies of which are attached hereto and fully incorporated herein for all purposes,and shall be interpreted in the order of priority as appears below: a. This Agreement; and b. IKE Agreement(Exhibit A). 2.0 TERM The term of the Agreement will be for a period beginning on the Effective Date and expiring on the December 31`that is ten(10)full years following the date on which the 15'h IKE Kiosk is installed and operational. The Agreement shall automatically renew for one (1)additional term of ten(10)years without further City Commission approval. 3.0 INSURANCE Prior to the commencement of any work under this Agreement, IKE shall furnish copies of all required endorsements and completed Certificate(s) of Insurance to the City's Finance Department, Purchasing Division, which shall be clearly labeled "DIGITAL COMMUNITY KIOSKS" in the Description of Operations block of the Certificate. The Certificate(s) shall be completed by an agent and signed by a person authorized by that insurer to bind coverage on its behalf.The City will not accept a Memorandum of Insurance or Binder as proof of insurance.The certificate(s) must be signed by the Authorized Representative of the carrier, and list the agent's signature and phone number. The certificate should be mailed, with copies of all applicable endorsements,directly from the insurer's authorized representative to the City. The City shall have no duty to pay or perform under this Agreement until such certificate and endorsements have been received and approved by the City's Finance Department, Purchasing Division. No officer or employee,other than the City's Risk Manager,shall have authority to waive this requirement. The City reserves the right to review the insurance requirements of this Article during the effective period of this Agreement and any extension or renewal hereof and to modify insurance coverages and their limits when deemed necessary and prudent by City's Risk Manager based upon changes in statutory law,court decisions, or circumstances surrounding this Agreement In no instance will City allow modification whereby City may incur increased risk. IKE's financial integrity is of interest to the City; therefore, subject to IKE's right to maintain reasonable deductibles in such amounts as are approved by the City,IKE shall obtain and maintain in full force and effect for the duration of this Agreement,and any extension hereof,at IKE's sole expense, insurance coverage written on an occurrence basis, unless otherwise indicated, by companies authorized to do business in the State of Florida and with an A.M Best's rating of no less than A(VII),in the following types and for an amount not less than the amount listed below: TYPE AMOUNTS Workers Compensation Statutory Employers- Liability 1,000,000/$1,000 000/$1,000,000 . Commercial General Liability For bodily Injury and property Damage of Insurance to include coverage for the $1,000,000 per occurrence; following: $2,000,000 General Aggregate, or it Premises/Operations equivalent in Umbrella or Excess Liability Products/Completed Operations Coverage Persona/Advertising Injury 4. Business Automobile Liability Combined Single Limit for Bodily Injury Owned/leased vehicles and property Damage of$1,000,000 per Non-owned vehicles occurrence Hired Vehicles 5. Professional Liability(Claims-made $1,000,000 per claim, to pay Oil behalf of basis)To be maintained and in effect for the insured all sums which the insured shall o less than two years subsequent to the become legally obligated to pay as damage completion of the professional service. by reason of any act,malpractice, error,or Emission in 2Mfessional services. IKE agrees to require, by written contract, that all subcontractors providing goods or services hereunder obtain the same categories of insurance coverage-required of IKE herein,and provide a certificate of insurance and endorsement that names the IKE and the City as additional insureds. Policy limits of the coverages carried by subcontractors will be determined as a business decision of IKE. IKE shall provide the City with said certificate and endorsement prior to the commencement of any work by the subcontractor. This provision may be modified by City's Risk Manager, without subsequent City Commission approval, when deemed necessary and prudent, based upon changes in statutory law,court decisions;or circumstances surrounding this agreement. Such modification may be enacted by letter signed by City's Risk Manager, which shall become a part of the contract for all purposes. As they apply to the limits required by the City,the City shall be entitled,upon request and without expense, to receive copies of the policies, declaration page, and all required endorsements. IKE, shall be required to comply with any such requests and shall submit requested documents to City at the address provided below within 10 days. IKE shall pay any costs incurred resulting from provision of said documents. IKE agrees that with respect to the ab ve required insurance, all insurance policies are to contain or be endorsed to contain the following provisions: • Name the City, its officers, officials, employees, volunteers, and elected representatives as additional insureds by endorsement, as respects operations and activities of. or on behalf of, the named insured performed under contract with the City,with the exception of the workers' compensation and professional liability policies; • Provide for an endorsement that the "other insurance" clause shall not apply to the City of Aventura where the City is an additional insured shown on the policy; ■ Workers' compensation,employers liability, general liability and automobile liability policies will provide a waiver of subrogation in favor of the City. • Provide advance written notice directly to City of any suspension or non-renewal in coverage, and not less than ten(10)calendar days advance notice for nonpayment of premium. Within five(5)calendar days of a suspension,cancellation,or non-renewal of coverage,IKE shall provide, a replacement Certificate of Insurance and applicable endorsements to City. City shall have the option to suspend IKE's performance should there be a lapse in coverage at any time during this contract. Failure to provide and to maintain the required insurance shall constitute a material breach of this Agreement. In addition to any other remedies the City may have upon IKE's failure to provide and maintain any insurance or policy endorsements to the extent and within the time herein required, the City shall have the right to order IKE to stop work hereunder, and/or withhold any payment(s) which become due to IKE hereunder until IKE demonstrates compliance with the requirements hereof Nothing herein contained shall be construed as limiting in any way the extent to which IKE may be held responsible for payments of damages to persons or property resulting from IKE's or its subcontractors'performance of the work covered under this Agreement. It is agreed that IKE's insurance shall be deemed primary and non-contributory with respect to any insurance or self insurance carried by the City of Aventura for liability arising out of operations under this Agreement. It is understood and agreed that the insurance required is in addition to and separate from any other obligation contained in this Agreement and that no claim or action by or on behalf of the City shall be limited to insurance coverage provided. IKE and any subcontractors are responsible for all damage to their own equipment and/or property. 4.0 INDEMNIFICATION IKE covenants and agrees to FULLY INDEMNIFY, DEFEND and HOLD HARMLESS, the CITY and the elected officials, employees, officers, directors, volunteers and representatives of the CITY,individually and collectively,from and against any and all costs,claims,liens,damages, losses, expenses, fees, fines, penalties, proceedings, actions, demands, causes of action, liability and suits of any kind and nature,including but not limited to,personal or bodily injury, death and property damage, made upon the CITY directly or indirectly arising out of, resulting from or related to IKE's activities under this Agreement,including any acts or omissions of IKE,any agent, officer,director,representative,employee,consultant or subcontractor of IKE,and their respective officers, agents employees, directors and representatives while in the exercise of the rights or performance or the duties under this Agreement. The indemnity provided for in this paragraph shall not apply to any liability resulting from the negligence of CITY,its officers or employees,in instances where such negligence causes personal injury, death, or property damage. IN THE EVENT IKE AND CITY ARE FOUND JOINTLY LIABLE BY A COURT OF COMPETENT JURISDICTION, LIABILITY SHALL BE APPORTIONED COMPARATIVELY IN ACCORDANCE WITH THE LAWS FOR THE STATE OF FLORIDA, WITHOUT, HOWEVER, WAIVING ANY GOVERNMENTAL IMMUNITY AVAILABLE TO THE CITY UNDER FLORIDA LAW AND WITHOUT WAIVING ANY DEFENSES OF THE PARTIES UNDER FLORIDA LAW. The provisions of this INDEMNITY are solely for the benefit of the parties hereto and not intended to create or grant any rights, contractual or otherwise. to any other person or entity. IKE shall advise the CITY in writing within 24 hours of any claim or demand against the CITY or IKE known to IKE related to or arising out of IKE's activities under this AGREEMENT and shall see to the investigation and defense of such claim or demand at IKE's cost. The CITY shall have the right, at its option and at its own expense,to participate in such defense without relieving IKE of any of its obligations under this paragraph. 5.0 LAW APPLICABLE 5.1 THIS CONTRACT SHALL BE CONSTRUED UNDER AND IN ACCORDANCE WITH THE LAWS OF THE STATE OF FLORIDA AND ALL OBLIGATIONS OF THE PARTIES CREATED HEREUNDERARE PERFORMABLE IN MIAMI-DADE COUNTY, FLORIDA. 5.2 Any legal action or proceeding brought or maintained, directly or indirectly,as a result of this Contract shall be heard and determined in the City of Aventura,Miami-Dade County, Florida. 6.0 TERMINATION 6.1 For purposes of this Agreement"termination"of this Agreement shall mean termination by expiration of the Agreement term as stated,or earlier termination pursuant to any of the provisions hereof. 6.2 Intentionally omitted. 6.3 Termination For Cause. Upon written notice,either party may terminate this Agreement as of the date provided in the notice, in whole or in part upon the occurrence of one (1) or more of the following events, each of which she constitute an Event for Cause under this Agreement: 6.4 The sale, transfer, pledge, conveyance or assignment of this Agreement without prior approval,which shall not be reasonably be withheld. 6.5 City's failure for a period of thirty(30) days to pay IKE for service and/or materials under of this Agreement. 6.6 Defaults With Opportunity for Cure. Should IKE default in the performance of this Agreement in a manner, same shall be considered an event of default City shall deliver written notice of said default specifying such matter(s)in default.IKE shall have thirty(30)calendar days after receipt of the written notice to cure such default. If IKE fails to cure the default within such thirty-day cure period City shall have the right without further notice,to terminate this Agreement in whole or in part as City deems appropriate. 6.6.1 Bankruptcy or selling substantially all of company's assets; 6.6.2 Failing to perform or failing to comply with any covenant herein required; and 6.6.3 Performing unsatisfactorily,as reasonably determined by City. 6.7 Termination By Law. If any state or federal law or regulation is enacted or promulgated which prohibits the performance of any of the duties herein,or,if any law is interpreted to prohibit such performance, this Agreement shall automatically terminate as of the effective date of such prohibition. 6.8 Regardless of how this Agreement is terminated, IKE shall affect an orderly transfer to City or to such person(s) or firm(s) as the City may designate, at no additional cost to City, all completed or partially completed documents, papers, records, charts, reports, and any other materials or information produced as a result of or pertaining to the services rendered by IKE, or provided to IKE, hereunder, regardless of storage medium, if so requested by City, or shall otherwise be retained by IKE. Payment of compensation due or to become due to IKE is conditioned upon delivery of all such documents, if requested. 6.9 Termination Not Sole Remedy. In no event shall City's action of terminating this Agreement, whether for cause or otherwise, be deemed an election of City's remedies, nor shall such termination limit, in any way, at Jaw or at equity, City's right to seek damages from or otherwise pursue IKE for any default hereunder or other action. 6.10 If funding for the entire Agreement is not appropriated at the time this Agreement is entered into,and such appropriation is necessary to enable the City to administer the operation of the IKE Kiosks and the City will not otherwise recoup all, or such portion that is not appropriated, of its administration costs from the Rent payable pursuant to the terms of the IKE Agreement. City retains the right to terminate this Agreement at the expiration of each of City's budget periods,and any subsequent contract period is subject to and contingent upon such appropriation. In the event of such termination by City, IKE shall be entitled to payment in full for all work which IKE has performed in accordance with this Agreement and all equipment which IKE has delivered to the City pursuant to this Agreement. 7.0 ENTIRE AGREEMENT This Agreement, together with its exhibits, if any, constitutes the final and entire agreement between the parties hereto and contains all of the terms and conditions agreed upon. No other agreements, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or to bind the parties hereto, unless the same-are in writing, dated subsequent to the date hereto,and duly executed by the parties. (Signatures on following page) EXECUTED and AGREED to as of the dates indicated below. This Agreement may be executed in multiple copies, each of which shall constitute an original. CITY OF AVENTU IKE SMART CITYLLC By' By: ] Print Namc: _ e�r4[ tl �_ �1a$At Print Name: Its: Its: C�� Exhibit A IKE AGREEMENT THIS IKE AGREEMENT (this"Agreement")is agreed to by and between the City and the Company as of the date set forth in the Integration Agreement(the"Effective Date"). I BACKGROUND INFORMATION A. The Company is engaged in the development, installation, operation, and maintenance of interactive wayfinding platforms, including IKE Kiosks(as hereinafter defined). B. The City desires to improve the experience for its residents and visitors through the use of IKE Kiosks. C. The City and the Company now desire to coordinate efforts to discuss the deployment of IKE Kiosks within the City, and the City desires to grant Company certain rights to construct, install,operate,maintain,repair,replace,upgrade,and remove IKE Kiosks in and on the Locations(as hereinafter defined)all in accordance with the terms set forth in this Agreement. AGREEMENT NOW,THEREFORE,for good and valuable consideration,the receipt and sufficiency of which are hereby acknowledged, City and Company hereby agree as follows: 1. Incorporation of Background Information.The foregoing background information is hereby incorporated and made a part of this Agreement. 2. Definitions. a. "Agreement" or"IKE Agreement" means the terms and condition set forth in this Exhibit A to the Integration Agreement. b. "City"means the City of Aventura, Florida. c. "City Directed Content" means any and all content provided to Company by the City or an organization directed by the City for display on IKE Kiosks or created by the Company at the direction of the City, including any content on which City, or its affiliates', logos,trademarks or other City marks may appear. d. "Company"means IKE Smart City, LLC, a Delaware limited liability company. e. "Digital IKE Kiosks"means the interactive media kiosks operated by the Company for the purpose of displaying static and digital content, and which may provide, without limitation,those services and applications as set forth on Exhibit C. The Digital IKE Kiosks are referred to individually as a"Digital IKE Kiosk". f. "Fiscal Quarter" means the periods between and including (i) January 1"through March 31",(ii)April 1st through June 30`h(iii)July I"through September 30a',and(iv)October 0 through December 31`. g. "Freedom of Information Law"or"FOI Law"means all applicable state and federal statues, laws. ordinances, rules, regulations, requirements and codes, related to any public request for information, requiring certain proceedings of government agencies to be open or available to the public,or otherwise known as a"Sunshine Law"or"Open Records Acts." h. "IKE Kiosks" means the Digital IKE Kiosks and Static IKE Kiosks. The IKE Kiosks are referred to individually as an"IKE Kiosk". i. "Installation Work" means all work performed by the Company to install an IKE Kiosk at a Location, including any and all work necessary to bring electrical service or fiber optic cable to that Location. j. "Integration Agreement"means that certain Integration Agreement for the City of Aventura Digital Community Kiosk Between the City of Aventura, Florida and IKE Smart City, LLC. k. "Intellectual Property Rights" or "IPR" means the Company's patents, registered designs,and trademarks, together with applications therefor and copyrights of any kind. 1. "Interactive Mode" means the condition of an IKE Kiosk during any period in which a user is actively engaging the IKE Kiosk. m. "Locations" means those locations on which the IKE Kiosks may be installed by Company as described on Exhibit A,and subject to change as set forth in this Agreement.The Locations are referred to individually as a"Location". n. "Minimum Annual Guarantee"means those amounts set forth on Exhibit B-1. o. "Net Revenue" means the total revenue generated by the Company in connection with the operation of the IKE Kiosks,less the amount of the upfront costs for the purchase and installation of the machines, amortized on a straight-line basis over the Initial Term of this Agreement. p. "Operational Date"means the date on which an IKE Kiosk is installed and capable of carrying advertisements and performing the functions and services set forth in this Agreement. q. "Rent" means the amount paid by the Company to the City for the use of the Locations,as set forth on Exhibit B. r. "Passive Mode"means the condition of an IKE Kiosk during any period in which no users are actively engaging the IKE Kiosk. s. "Required Approvals" means any and all governmental approvals, permits and entitlements the Company or City deems reasonably necessary for the installation and operation of IKE Kiosks. t. "Software"means any and all software used in the operation of the IKE Kiosks. u. "Spot" means a discrete unit of time during Passive Mode when content may be displayed on IKE Kiosk screens. v. "Term" means the period in which the Company may install and operate the IKE Kiosks,as set forth on Exhibit B,and shall include the Initial Term and any Renewal Tenn. I 3. Permitting Period. From and after the Effective Date, the parties shall work together on an exclusive basis to ensure that the Required Approvals are obtained, and the City shall provide such advice, counsel, and assistance as is reasonably practicable and permissible to assist the Company in preparing and submitting permit applications for the installation, operation and maintenance of the IKE Kiosks on the Locations and the display of Advertisements thereon. During any time when the parties are seeking the Required Approvals,the Company may engage in certain efforts as the Company deems necessary to advocate for the same. If and when issued, such permits shall be issued in the name of the Company. The parties hereby acknowledge and agree that the IKE Kiosks will not be installed at the Locations unless and until the Required Approvals are obtained. 4. Grant of Rights.Once the Required Approvals are received by the Company,the City hereby grants the Company the right to construct. install, operate, maintain, repair, replace. upgrade and remove IKE Kiosks in and on the Locations during the Term of this Agreement. The City covenants and agrees that the rights granted in this Agreement to the Company are exclusive to the Company and the City shall not contract with any party, other than the Company. for the construction,installation or operation of any other digital kiosks containing advertising within the City, other than those in operation at the time of the execution of this Agreement. City and the Company shall work together in good faith to discuss the number and locations within the City for the installation of IKE Kiosks or other street furniture or kiosks. The City additionally grants to the Company a non-exclusive right of ingress and egress over and across any and all City-owned property as reasonably necessary to access the Locations for the purposes set forth in this Agreement. 5. Term. The Term of this Agreement, and the rights and obligations of the parties set forth herein, shall begin on the Effective Date and continue for the period set forth on the attached Exhibit B. 6. Rent. From and after the Operational Date for each IKE Kiosk and through the end of the Tenn,the Company shall pay to the City the Rent in accordance with the terms set forth on the attached Exhibit B.All payments of Rent shall be made at the City's address as set forth in Section 22 of this Agreement,or at such other address as may be designated by the City from time to time. 7. Plan Approval. Prior to starting any Installation Work for any IKE Kiosk, the Company shall, at its sole cost and expense, prepare and deliver to the City drawings, plans and specifications(the"Plans"),setting forth in reasonable detail the work necessary to install the IKE Kiosk and the dimensions and size of the IKE Kiosk to be installed at a Location. The City shall review the Plans and provide its response thereto within thirty(30)days after receipt of the Plans. The Company shall review any comments to the Plans provided by the City and provide a response to those comments as soon as commercially practical after receipt thereof. The parties shall continue in this manner until such time as the Plans are approved or deemed approved by the City Manager.The Company shall not begin any Installation Work with respect to a particular Location unless and until the City Manger has approved the Plans,which approval will not be unreasonably withheld,conditioned, or delayed. 8. Required Approvals. The Company shall bear all costs and expenses associated with obtaining any and all Required Approvals. City agrees to assist the Company with making and submitting applications for and obtaining and maintaining the Required Approvals contemplated by this Agreement. 9. Installation Work. Upon receipt of the City's approval of the Plans and issuance of all Required Approvals, the Company shall work diligently to install the IKE Kiosks in accordance with an installation schedule prepared by the Company. All Installation Work shall be at the Company's sole cost and expense and shall be completed within the time periods set forth in Exhibit B to the Integration Agreement. The Company shall perform the Installation Work in a good and workmanlike manner and in compliance with all applicable laws, regulations and rules and the Required Approvals. 10. Utility Services. a. Services.The City shall use its best efforts to work with the Company,such as by assisting the Company in contacting the utility and telecommunications companies and providing public support for the Company, to ensure that electrical service and fiber optic cables are able to be brought to each Location, if not available as of the Effective Date. If bringing electrical service or fiber optic cables to a Location is not reasonably feasible, the parties shall work together to find a reasonably suitable alternative location for the IKE Kiosk at issue. Additionally, where access is required across private property to bring electrical service and fiber optic cables to a Location,the City shall use best efforts to aid the Company, such as by assisting the Company in contacting property owners and providing public support for the Company,in negotiating and obtaining access rights across such private property.If the parties are unable to negotiate access rights on terms and conditions reasonably satisfactory to the Company,the parties shall work together to find a reasonably suitable alternative location for the IKE Kiosk at issue. Upon selection of an alternative location for any Location, the parties shall amend Exhibit A to reflect such alternative location. b. Cost. The Company shall perform all work necessary to, and pay all costs associated with, bringing utility services and telecommunications services to each Location, including any and all costs associated with negotiating and obtaining access rights across private property in connection with the same. Additionally, the Company shall pay the costs of all utility services and telecommunication services used or consumed by the Company on each Location directly to the suppliers of such services. C. Disruption of Services. If any utility services are interrupted or otherwise unavailable to one or more IKE Kiosks due to no fault of the Company, City shall use its best efforts to aid the Company to ensure the utility services are restored to such IKE Kiosks as soon as reasonably practicable. 11. Covenants of the Company. a. Repair and Maintenance. The Company shall maintain the IKE Kiosks in good and operable condition. reasonable wear and tear excepted.The Company shall begin all work necessary to repair any damage to the IKE Kiosks within twenty-four (24) hours after receipt of written notice of the need for such repairs and shall provide the City with a status of update within twenty-four(24)hours after beginning such work. If the repair does not require a replacement of the IKE Kiosk, the Company shall use best efforts to complete the same within five(5)business days after beginning such work. If the repair requires a replacement of the IKE Kiosk, the Company shall: (a) remove the IKE Kiosk within five (5) business days and cap any utility connections to make the Location safe for pedestrians; and (b) use best efforts to complete the replacement work within sixty(60)days after beginning such work. In either event, the Company shall perform such repair and replacement work as reasonably necessary throughout the Term to ensure the IKE Kiosks are capable of operating for their intended purposes.No failure to complete repairs within a specific time period shall constitute a default on behalf of Company so long as the Company is diligently pursuing repair of the IKE Kiosk. b. Content and Software. The Company shall deploy updates to the operating software used to operate the IKE Kiosks from time to time during the term of this Agreement to ensure that such software remains reasonably up to date and functional for its purposes.The Company shall also provide such content updates as are reasonably required by the terms of this Agreement and otherwise to ensure that the IKE Kiosks remain functional for their purposes. The Company shall pay all costs associated with developing and updating the software and operating system for the IKE Kiosks and any technology developed by or at the direction of the Company for the IKE Kiosks. C. Compliance with Laws. The Company shall comply with all federal, state and municipal laws, order, rules and regulations applicable to the use of the IKE Kiosks and the display of content thereon. d. City Content. As and when requested by City, the Company shall meet with City to discuss the development of City Directed Content for the IKE Kiosks. City Directed Content shall appear on the IKE Kiosks during the Interactive Mode and Passive Mode in the frequencies and amounts as set forth on Exhibit B. e. Advertising Content. The Company shall not display any of the following types of advertisements on the IKE Kiosks: (i) political or religious advertisements or advertisements or displays designed to promote views of particular political or religious groups or influence opinions of others on public policy issues; (ii) advertisements or displays which involve nudity.partial nudity or pornographic,lewd or sexually explicit images or services that would be offensive to generally prevailing community standards; (iii) tobacco or marijuana advertisements; (iv) content that could be deemed offensive by reasonable local community standards; or (v) advertisements or displays which condone discrimination based upon race, religion, creed,ethnicity. disability, gender or sexual orientation. If the City determines, in its reasonable judgement,that an advertisement being displayed on the IKE Kiosks is in violation of this Section I I(e),the City shall provide the Company with written notice of the same,and the Company shall remove such advertisement within twenty-four (24) hours of receipt of written notice from the City. Additionally,the City may elect to revise the content restrictions contained in this Section I I(e) to prohibit other foods or beverages that the public health authorities in the State of Florida have deemed to be in violation of public health standards or any other content that may be in violation of a city policy or city ordinance. f. Liens. The Company shall be responsible for the satisfaction or payment of any liens for any provider of work, labor, material or services claiming by, through or under the Company. The Company shall also indemnify. hold harmless and defend City against any such liens,including the reasonable fees of City's attorneys. Such liens shall be discharged by the Company within thirty(30)days after notice by City of filing thereof by bonding,payment or otherwise, provided that the Company may contest. in good faith and by appropriate proceedings,any such liens. 12. Covenants of City. a. Maintenance. City agrees to cooperate with the Company and the City to ensure that the Locations and the property adjacent to the Locations are maintained in a good and clean condition and otherwise in a manner so as to not impede or limit access to the IKE Kiosks. b. City Content.City shall work with the Company in good faith to create City Directed Content for the IKE Kiosks. City shall promptly and thoroughly provide information requested by,and answer any and all questions from,the Company regarding the development of any City Directed Content.City shall promptly respond to any requests for approval of City Directed Content and shall communicate any objections to such content clearly and in writing. 13. Property Ownership. City acknowledge that the IKE Kiosks, the Software, including any enhancements thereto regardless which party generated the enhancements. the IPR and any intellectual property rights in and to any of the content created by the Company and displayed thereon, including City Directed Content, shall belong to the Company and no part thereof shall become or be deemed the property of City.Each parry shall do all such acts and things as the other party may reasonably require for the purpose of preserving or perfecting the foregoing. City shall promptly notify the Company of any infringement or unauthorized use of the IKE Kiosks.the Software, any IPR or any content created for the IKE Kiosks, including City Directed Content, of which it becomes aware and will cooperate fully to take all actions necessary to terminate such infringing or unauthorized use. Additionally, the Company acknowledges that all logos, trademarks and other marks of City belong to City and no part thereof shall become or be deemed to be the property of the Company, regardless of whether the same are incorporated into City Directed Content. City agrees, at its sole cost and expense, take all actions necessary to maintain ownership of its logos,trademarks and other marks during the Term. 14. Insurance and Indemnification. See Sections 3.0 and 4.0 of the Integration Agreement. 15. Representations and Warranties of City. City represents and warrants to the Company the following: a. Requisite Authority.City has the requisite power and authority to enter into this Agreement.to grant the rights herein granted with respect to the Locations subject to City approval as may be required, to perform its obligations hereunder and to consummate the transactions contemplated hereby; and no further action on the part of City is necessary to authorize the execution and delivery by it, and the performance of its obligations under this Agreement. City is not aware of any action,waiver or consent by any governmental entity that is necessary to make this Agreement a valid instrument binding upon City in accordance with its terms. b. Execution and Delivery. City has duly executed and delivered this Agreement and this Agreement constitutes the legal, valid and binding obligation of City. enforceable in accordance with its terms. C. No Violation; Absence of Defaults. Neither the execution and delivery by City of this Agreement, nor the consummation of the transactions contemplated hereby, will (i)violate any agreement or other instrument to which City is a party,or result in a breach of, or constitute(with due notice or lapse of time or both) a default under any such agreement or other instrument, or (ii) violate any law, administrative regulation or rule or court order, judgment or decree applicable to City or by which City is bound. 16. Default and Remedies. a. Default.If either party fails to comply with any term of this Agreement and such failure is not cured within thirty (30) days after receipt of written notice from the non- breaching party of the same, or, if such failure is of a nature that cannot reasonably be cured within such thirty (30) day period, the breaching party shall have such additional time as is reasonably necessary in which to cure such failure. b. Remedies. If any breach of this Agreement is not cured within the time period set forth in Section 16(a),above,the non-breaching party shall have the right to terminate this Agreement and seek such other rights and remedies as may be available at law or in equity. 17. Assignment.Except as otherwise provided herein,neither this Agreement nor any rights or obligations hereunder may be assigned by either party without the prior consent of the other party, which consent shall not be unreasonably withheld or delayed. Notwithstanding the foregoing,in the event(i)that substantially all operations of the Company are being transferred to (a) another entity by way of merger, consolidation or sale of substantially all of the stock therein or assets thereof, or (b) any person or entity which, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with the Company, or (ii) there is a transfer of outstanding capital stock or other listed equity interests in and to the Company through the "over-the-counter" market or any recognized national or international securities exchange, the consent of City shall not be required, provided the acquiring entity. if applicable, shall agree to assume and perform all of the duties, and obligations of the Company hereunder. Notwithstanding anything contained in this Agreement to the contrary, the consent of City shall not be required for a collateral or conditional assignment of this Agreement to a lender of the Company, nor shall City consent or approval be required in connection with the Company's entering into any equipment financing or equipment leasing with respect to, or the granting of a security interest in and to,the IKE Kiosks. 18. Surrender. Upon the expiration or earlier termination of this Agreement, the Company shall remove the IKE Kiosks and restore the Locations as close as reasonably practical to their original conditions, subject to reasonable wear and tear and shall do such work as is reasonably necessary to cap off the utilities serving the Locations. 19. Confidentiality and Sunshine Laws. a. Except as provided otherwise in this Section 19,City and the Company,for the benefit of each other, hereby agree that neither of them will release or cause or permit to be released to the public in any manner whatsoever, the terms, conditions or substance of this Agreement or the transactions contemplated herein, without first obtaining the consent of the other party hereto,which may be granted or withheld in the sole discretion of the other party. b. The parties understand that City is a governmental entity required to comply with the Florida Public Records law under Chapter 119 of the Florida Statutes (the "Act")when responding to records requests made under the Act.Pursuant to Section 119.0715, Florida Statutes,trade secret information, as defined in Section 812.081, Florida Statutes,and Section 688.002,Florida Statutes are confidential and exempt from Section 119.07(1),Florida Statutes and s. 24(a),Art. 1 of the Florida Constitution. It is the responsibility of Company to conspicuously mark materials that constitute trade secrets under Florida law prior to the submission of such materials to the City. If City receives a request for information which the Company has marked as being a trade secret,the City will notify Company of its receipt of the request and may request that Company execute an Affidavit of Trade Secret Certification in the form reasonably acceptable to the City, setting forth the basis for the exemption. If the requester of the public record objects to the exemption, the City will promptly provide Company with notice of the objection, so as to provide Company the opportunity to file an action with a court of competent jurisdiction within thirty(30)calendar days,seeking an order barring public disclosure of the document. If Company fails to file a lawsuit within such time period,the City shall produce the public records requested in accordance with Florida law. If the requester of a public record, which is in the possession of Company, objects to the trade secret exemption set forth in the Trade Secret Affidavit and files a lawsuit against the City seeking to compel the City to produce the record that is in the possession of Company,the City will promptly provide Company with written notice of the lawsuit, so as to provide Company the opportunity to intervene in the lawsuit and defend the City. Company agrees to indemnify, defend and hold harmless the City with respect to all expenses, including any court costs and attorney's fees, which may be incurred by the City in connection with any administrative or court proceeding, including any appellate action, arising out of any public records request relating to any information asserted to be a trade secret by Company. Nothing in this Agreement shall require the City to institute or participate in any litigation relating to an open records request for information that the Company considers to be a trade secret. Notwithstanding any other provision contained in this Agreement, this Agreement, including its terms,and any other records that the City keeps in connection with this Agreement,as part of its transaction of official business including, without limitation, payment records, and financial statements shall not be considered a trade secret. C. In addition to any other remedies available to City and the Company, City and the Company shall each have the right to seek equitable relief, including, without limitation, injunctive relief or specific performance, against the other party or its representatives in order to enforce the provisions of this Section 19. d. Notwithstanding any other provision of this Agreement, the provisions of this Section 19 shall survive the termination of this Agreement. Nothing in this agreement shall require the City to institute or participate in any litigation relating to an open records request for information that IKE considers to be confidential. 20. Force Majeure. Neither Party shall be liable to the other for any loss, damage, claim, delay or default arising during suspension of performance due to acts of God (including storm, fire, flood and earthquake). labor disturbances (including strikes, boycotts, lockouts. etc.) war, acts of terrorism, civil commotion, imposition of any future governmental law, ordinance, rule or regulation, any strike or work stoppage, or other cause beyond the control of such Party; provided. however, that either Party shall only be entitled to rely on this Section to the extent it uses its best efforts to resume performance under this Agreement as soon as reasonably practicable after such occurrence. 21. Casualty. If during the Term all or a material part of any IKE Kiosk is damaged by a casualty,the Company shall have the option to terminate this Agreement with respect to such IKE Kiosk by written notice given to City promptly after the occurrence of the casualty. All insurance proceeds or other compensation for any such casualty shall belong to the Company. 22. Notice. All notices. demands. requests or other communications given under this Agreement shall be in writing and be given by (a) personal delivery, (b) certified mail. return receipt requested, or (c) nationally recognized overnight courier service to the address set forth below or as otherwise designated in writing by the parties. All notices delivered pursuant to the terms of this Section shall be deemed delivered on receipt or refusal of receipt. If to City: City of Aventura] Vesi � C, wA� q `-ir �J l 0 If to the Company: IKE Smart City,LLC 250 N. Hartford Avenue Columbus, Ohio 43222 Attn: Chief Financial Officer With a copy to: Underhill& Hodge, LLC 8000 Walton Parkway Suite 260 New Albany,Ohio 43054 23. Governing Law.This Agreement shall be governed by and construed by the laws of the State of Florida, and exclusive jurisdiction over any legal action arising out of or in connection with this Agreement shall be in state courts located in the City of Aventura,County of Miami-Dade, State of Florida. 24. Counterparts and Electronic Signatures. This Agreement may be executed by the parties hereto in two or more counterparts and each executed counterpart shall be considered an original. This Agreement may be executed and delivered by electronic signature; any original signatures that are initially delivered electronically shall be physically delivered with reasonable promptness thereafter. 25. Drafting. This Agreement has been negotiated between the parties and, for construction purposes,shall not be deemed the drafting of any one party. 26. Amendments; Invalidity. This Agreement may not be amended, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver, or discharge is sought. The invalidity of any one of the covenants, agreements, conditions or provisions of this Agreement or any portion thereof shall not affect the remaining portions thereof or any part hereof and this Agreement shall be amended to substitute a valid provision which reflects the intent of the parties as was set forth in the invalid provision. 27. Exhibits. All exhibits referred to in this Agreement are incorporated in this Agreement by reference and will be deemed part of this Agreement for all purposes as if set forth at length herein. 28. No Joint Venture Partnership Agency.This Agreement will not be construed as in any way establishing a partnership, joint venture, express or implied agency, or employer employee relationship between City and the Company. 29. No Waiver. The failure of any party to exercise any right hereunder, or to insist upon strict compliance by the other party, shall not constitute a waiver of either party's right to demand strict compliance with the terms and conditions of this Agreement. 30. Survival. The provisions of this Agreement which,by their reasonable terms,are intended to survive termination of this Agreement shall survive termination. In the event that this Agreement is terminated or expires by its terms,such expiration or termination shall not affect any liability or other obligation which shall have accrued prior to such termination. 31. Section Headings.The section headings herein are inserted only for convenience and reference and shall in no way define, limit, or prescribe the scope or intent of any provisions of this Agreement. 32. Usage of Terms. When the context in which words are used herein indicates that such is the intent, words in the singular number shall include the plural and vice versa. All pronouns and any variations thereof shall be deemed to refer to all genders. 33. Attorneys' Fees and Costs. In the event of any claim, controversy or dispute regarding this Agreement, its interpretation or the performance or enforcement of the parties' rights,duties,remedies,and obligations hereunder,the prevailing party in such claim,controversy or dispute shall be awarded its reasonable attorneys' fees and costs, including its attorneys' fees and costs of any associated appeal. 34. Execution. By execution of that certain Integration Agreement for the City of Aventura Digital Community Kiosk Between the City of Aventura, Florida and IKE Smart City, LLC, the City and the Company hereby agree to all of the term and conditions set forth in this Agreement. No further signatures are required to consent to the terms and conditions of this Agreement. 35. Termination for Relocation.If at any time during the term of this Agreement,the Company is required by the City to remove and relocate one or more of the IKE Kiosks from any of the Locations and alternative locations acceptable to the Company are not made available to the Company,this Agreement shall terminate and be of no further force and effect with respect to such IKE Kiosks that were unable to be relocated. An alternative location shall be deemed to be acceptable to the Company if such location has economic value that is comparable to that of the previous Location. 36. FDOT MMOA.City and the Florida Department of Transportation("FDOT")are parties to that certain Florida Department of Transportation Master Maintenance Memorandum of Agreement for Wayfinding Digital Kiosk Devices dated _, 2023 (the "FDOT Agreement") for the installation, operation, and maintenance of IKE Kiosks on various FDOT controlled roads. The Company shall be responsible for all costs pertaining to the IKE Kiosks, including all costs associated with ensuring the IKE Kiosks are incompliance with the terms of the FDOT Agreement, and the Company shall operate the IKE Kiosks in compliance with the terms of the MOT Agreement throughout the Term. City shall not modify or amend the MOT Agreement in any manner that would increase the obligations or decrease the rights of the Company under this Agreement without first obtaining the prior written consent of the Company to such modifications or amendments.Additionally,City shall not terminate the MOT Agreement, unless required by law or FDOT. City shall provide immediate written notice to the Company in the event if becomes aware of any default under the MOT Agreement or any permits issued by the City for the installation,operation,and maintenance of the IKE Kiosks.In addition to any other rights and remedies available to the Company hereunder,the Company shall have the right to cure any defaults of the City under the FDOT Agreement. EXHIBIT A to IKE Agreement LOCATIONS The City and the Company agree that the Company shall seek to obtain Required Approvals for at least fifteen(15)IKE Kiosks. Upon the Company's receipt of the Required Approvals, the Company and the City shall work together to develop an implementation and construction schedule for the IKE Kiosks mutually acceptable to both parties. Additionally, if both the City and the Company desire to identify mutually agreed upon additional locations in the City for the placement of IKE Kiosks,the parties shall work together in good faith to identify those additional locations and execute an amendment to this Agreement incorporating those mutually agreed upon additional locations upon the same terms and conditions as set forth herein. Potential Locations l. W Country Club Drive Loop& Spoke Rd 2. W Country Club Drive—JW Marriott Turnberry 3. W Country Club Drive&NE 199" St 4. N Country Club Drive &NE 30 Ave 5. Biscayne Blvd&NF,213`h St 6. Biscayne Blvd&NE 208" St 7. Biscayne Blvd&NE 208"Terr 8. Biscayne Blvd&NE 199'h St 9. Biscayne Blvd&NE 1951h St 10. Biscayne Blvd&NE 185h St/l86`h St 11.NE 1881h St—Peace Park&Cultural Center 12. NE 199"' St&NE 29'h PI 13.NE 190'h St—Founders Park 14.NE 2071h St&NE 291h Ave 15.NE 2071h St&NE 30'h Ct EXHIBIT B to IKE Agreement DEAL TERMS NOTE-THE INFORMATION CONTAINED IN THIS EXHIBIT B AND EXHIBIT B-1 IS CONFIDENTIAL,FINANCLAL AND PROPRIETARY INFORMATION. 1. Term. The term of this Agreement shall be for a period commencing upon the Effective Date and expiring on the December 3 1"that is ten(10) full years following the date on which the 151 IKE Kiosk is installed and operational (the "Initial Term"). The Agreement shall automatically renew for one(1)additional term of ten(10)years without further City Commission approval(the"Renewal Term"). All terms, conditions, and requirements of this Lease,except for the Company's obligation to pay the Rent or any other monies,shall commence as of the Effective Date. The term"Tenn Year",as used in this Agreement,shall mean each calendar year during the Tenn, with the first Tenn Year commencing on the Operational Date of the I" IKE Kiosk and terminating on the December 3111 that is a full year following the Operational Date of the 15'h IKE Kiosk. 2. Rent. The Company shall pay to the City the greater of(a) an amount equal to twenty-one and one-half percent (21.5%) of the Net Revenue for each IKE Kiosk during each Term Year and (b) the Minimum Annual Guarantee applicable to such Term Year(the "Rent'). The amount of the Minimum Annual Guarantee applicable to a Term Year shall be determined by multiplying the Minimum Annual Guarantee by the number of IKE Kiosks that are operational in a given Tenn Year and shall be adjusted to reflect the actual amount of time during that Tenn Year that a revenue producing IKE Kiosk is operational, defined as from the IKE Kiosk's go-live date to December 31 st of that Term Year.From and after the Operational Date for each IKE Kiosk and throughout the remainder of the Tenn, Rent for such IKE Kiosks shall be paid in quarterly installments due on the fifteenth (15th) day after the completion of each Fiscal Quarter. The Company shall submit to the City simultaneously with the payment of Rent, a statement of the Company's Net Revenue for the immediately preceding Fiscal Quarter.Additionally,on or before January 15th of each calendar year the Company shall submit to the City a statement of Net Revenue for the immediately preceding calendar year ("Reconciliation Statement"). If a Reconciliation Statement shows that the amount of Rent paid during any calendar year exceeded the amount actually due and owing by the Company, the Company shall credit such overage against Rent payments next coming due until reimbursed in full; provided. however, that for the last calendar year of the Tenn, the City shall reimburse the Company for the amount of any overpayment within thirty (30) days after receipt of the Reconciliation Statement. If a Reconciliation Statement shows that the amount of Rent paid during any calendar year was less than the amount actually due and owing by the Company for such year, then the Company shall pay such shortfall within thirty(30)days after submission of the Reconciliation Statement. Notwithstanding anything contained in this Agreement to the contrary, if, as a result of any revisions to the content restrictions in Section I I(e) that are made by the City, the Company is required to discontinue certain advertising contracts for the IKE Kiosks, then the Company shall notify the City of the percentage of Net Revenue that is attributable to such contracts. In the following year, the Minimum Annual Guarantee shall be reduced by the same percentage as the percentage decrease in Net Revenue attributable to such contracts. Thereafter, and for the remainder of the period of time during which Net Revenues remain reduced due to the loss of such contracts,the Company may continue to reduce the Minimum Annual Guarantee as aforesaid. 3. City Content. City Directed Content will be shown on the IKE Kiosks in accordance with the following schedule: a. During Interactive Mode,City Directed Content will occupy a minimum of sixty- six percent(66%)of the screen area on each of the IKE Kiosks. b. During Passive Mode. at least one(1)Spot out of every eight(8)Spots shown on an IKE Kiosk screen will contain City Directed Content. All Spots shall be of equal duration. EXHIBIT B-1 TO IKE AGREEMENT MINIMUM ANNUAL GUARANTEE NOTE-THE INFORMATION CONTAINED IN THIS EXHIBIT B AND EXHIBIT B-1 IS CONFIDENTIAL,FINANCIAL AND PROPRIETARY INFORMATION. Minimum Annual Guarantee to the City per IKE Kiosk(per Term Year _ annum 1 $6,000.00 2 $7 000.00 3 $8 000.00 4 $8 160.00 5 $8,323.20 6 $8 489.66 7 $8,659.46 8 $8,832.65 9 $9,009.30 10 $9,189.49 11 $9 373.28 12 $9 560.74 13 $9,751.96 14 $9 946.99 15 $10 145.93 16 $10,348.85 17 $10 555.83 18 $10,766.95 19 $10 982.29 20 $11 201.93 The Minimum Annual Guarantee shall be prorated on a per diem for any partial calendar month of the Term by multiplying the Minimum Annual Guarantee by a fraction the numerator of which is the number of days of such calendar month falling during the Term and the denominator of which is the total number of days in such month. EXHIBIT C TO IKE AGREEMENT IKE KIOSK SERVICES AND APPLICATIONS The IKE Kiosks may display the following applications: (i) Wayfinding, including multimodal mapping to destinations (including real time arrival and departure information),businesses and other points of interest(sorted into freestanding apps such as Eat, Play, Shop, Stay); (ii) Getting Around, including real-time arrival and departure information for public transit,bike share and car share services all accessed from an interactive map; (iii) Question of the Weep allowing for City to survey the public on its opinions and ideas; (iv) City Content at No Cost to City, including, without limitation, Public Service Announcements, Events (including a comprehensive event and activity listing for City), community, art, commercial messaging and other messaging for City programs; (v) Jobs,including career and internship postings within City,arranged geographically to encourage workforce development; (vi) Photobooth, including customized City-themed background postcards and social media integration; (vii) Emergency Communication, including a protocol for real-time posting of essential City communication such as, without limitation, storm warnings, amber alerts and road closures. These alerts shall be posted by Company immediately upon receipt of the information from the City; (viii) Pedestrian Counting, including wireless-based measurement of pedestrians within range of the IKE unit,and a web-based dashboard containing analytics for City's use; (ix) Air Quality Monitoring, including relaying data to City on a regular basis; (x) Arcade, including video games and other applications used to encourage user engagement,employing the unique touch-screen capabilities of the IKE Kiosks; (xi) Directory signs, including the listing of businesses and other points of interest within the City. EXHIBIT `B" PROJECT LIMITS Below are the limits of the KIOSKS to be installed, operated, and maintained by the CITY under this AGREEMENT. State Road: SR-1: Biscayne Blvd—From Morning Line Dr on the North to approx. 25.93724, -80.15009 on the South County: Miami-Dade Maintenance Memorandum of Agreement between Florida Department of Transportation and City of Aventura(Master Kiosk Agreement) Page 14 of 16 EXHIBIT "C" CITY OF AVENTURA RESOLUTION To be herein incorporated once ratified by the CITYBoard of Commissioners. Maintenance Memorandum of Agreement between Florida Department of Transportation and City of Aventura(Master Kiosk Agreement) Page 15 of 16 EXHIBIT "D" SUPPLEMENTAL AGREEMENT TO FLORIDA DEPARTMENT OF TRANSPORTATION MASTER MAINTENANCE MEMORANDUM OF AGREEMENT FOR WAYFINDING KIOSK DEVICES WITH THE CITY OF AVENTURA This Supplemental Agreement, dated the day of 20 , is entered into between the Florida Department of Transportation ("DEPARTMENT") and the City of Aventura("CITY"). In accordance with the provisions of the Master Maintenance Memorandum Agreement ("MMOA") for the KIOSKS between the PARTIES, dated the day of , 20 , the PARTIES enter into this Supplemental Agreement for purposes of incorporating the following KIOSKS, pursuant to FDOT Permit No(s). , within the State right of way described in such Permit, copy attached hereto and incorporated herein by reference. By their signature below, the PARTIES hereby acknowledge that FDOT Permit No. for KIOSKS on SR ,within the limits described in said Permit, is hereby incorporated into the MMOA, and the CITY shall comply with all installation, operations, and maintenance obligations thereunder and the PARTIES further agree to abide by all provisions thereunder. CITY OF AVENTURA: STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION: By: By: Ronald J. Wasson, City Manager Attest: By: By: Ellisa L. Horvath, MMC, City Clerk By: By: Robert Meyers, City Attorney Weiss Serota Helfman Cole + Bierman, P.L. Maintenance Memorandum of Agreement between Florida Department of Transportation and City of Aventura(Master Kiosk Agreement) Page 16 of 16 CITY OF "ENTURA FINANCE DEPARTMENT MEMORANDUM TO: City Commission FROM: Ronald J. Wasson, City Manager (44L BY: Melissa Cruz — Finance Director DATE: March 29, 2024 SUBJECT: Annual Comprehensive Financial Report (ACFR) Fiscal Year Ended September 30, 2023 April 2, 2024 City Commission Meeting Agenda RECOMMENDATION It is recommended that the City Commission approve the following motion: "A MOTION TO ACCEPT FOR FILING OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 AND THE LETTER DATED MARCH 21, 2024 ATTACHED HERETO AS ATTACHMENT A." BACKGROUND The ACFR, a letter from our independent auditors — Keefe McCullough, and a staff- prepared memorandum (dated March 21, 2024 and March 29, 2024, respectively), were distributed electronically to the City Commission on March 29, 2024. The Rules of the Auditor General, Chapter 10.550, require that the ACFR 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 21, 2024, 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 2nd City Commission meeting. ATTACHMENTA A Letter from our Independent Auditors — Keefe McCullough Dated March 21, 2024 March 21, 2024 To the Honorable Mayor and Members of the City Commission 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, 2023. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated October 5, 2022. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Matters 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 year, except for the implementation of GASB Statement No. 96, Subscription-Based Information Technology Arrangements.We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. 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: • The fair value of investments held at year-end. In accordance with GASB Statement No. 40, Deposit and Investment Risk Disclosures and GASB Statement No. 72, Fair Value Measurement and Application, we have included information to aid the reader in understanding the City's general exposure and its policies to mitigate underlying risks. • Depreciation of capital assets — Depreciation is provided on a straight-line basis over the respective estimated useful lives. 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. • Defined Benefit Pension Plan — For the net pension liability, the City contracted the services of pension consultants/actuaries and properly recorded the required activity to the City's accounting records in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions, and other applicable governmental accounting pronouncements. SOUTH FLORIDA BUSINESS JOURNAL KMCcpa.com 1 6550 N Federal Hwy,4th Floor, Fort Lauderdale, FL 33308 Phone:954.771.0896 Fax:954.938.9353 �v®© Top 25 Accounting Firms I South Florida Business Journal Top 400 Accounting Firms in the U.S.I INSIDE Public Accounting BEST PLACES TO WORK City of Aventura, Florida - 2 - March 21, 2024 • 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. The City also provides certain benefits to department directors which creates an explicit subsidy. The City obtained an actuarial valuation to record its estimated cost and liability in accordance with the requirements of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions(OPEB). • Receivables— Management records receivables based on estimated net realizable amounts. We evaluated the key factors and assumptions used to develop the above estimates in determining that they are reasonable in relation to the financial statements taken as a whole. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. There were no uncorrected misstatements noted during our audit. A listing of adjusting journal entries was provided to management and is available upon request. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's 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 21, 2024. Management Consultations with Other Independent Accountants 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 auditor's 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 21, 2024 Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters We did not audit the financial statements of the City of Aventura Police Officers' Retirement Plan Pension Trust Fund; our opinion, as it relates to this Pension Trust Fund, was based solely on the report of the other auditor. We applied certain limited procedures to the management's discussion and analysis, certain budgetary comparison schedules and related notes, and the schedules related to pensions and other post- employment benefits, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on supplementary information (combining and individual nonmajor fund financial statements, certain budgetary comparison schedules, and the schedule of expenditures of federal awards) which accompany the financial statement but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statement. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statement or to the financial statement themselves. We were not engaged to report on the introductory and statistical sections, which accompany the financial statements but are not RSI. Such information has 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. Restriction on Use This information is intended solely for the information and use of the Members of the City Commission and management of the City of Aventura, Florida and is not intended to be, and should not be, used by anyone other than these specified parties. V0#-W&4 KEEFE McCULLOUGH +� � •�� k� � ',w• r�_ �•• _ -.� f , , ,• j ,.5 r • ' - it - + + — -{•'} . -M - ti 44, dr City of Aventura Annual 4Financial R For the Fi* sca ear h' nded Se tember 30, 2023 1W �Mllk . 1` AVR FL ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF AVENTURA, FLORIDA FOR THE YEAR ENDED SEPTEMBER 30, 2023 o!� �! [!� =won 40 [!= �!! ► ![ el still JCIe V Prepared By The Finance Department Melissa Cruz, Finance Director Brent Rogers, Controller City of Aventura, Florida Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2023 Introductory Section (Unaudited): Letter of Transmittal i-viii List of Principal Officials ix Organizational Chart x GFOA Certificate of Achievement xi Financial Section: Independent Auditor's Report 1-4 Management's Discussion and Analysis (Unaudited) 5-14 Basic Financial Statements: Government -Wide Financial Statements: Statement of Net Position 15 Statement of Activities 16 Fund Financial Statements: Balance Sheet - Governmental Funds 17 Reconciliation of the Balance Sheet of Governmental Funds 18 to the Statement of Net Position Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 19 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 20 Statement of Net Position - Proprietary Fund 21 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Fund 22 Statement of Cash Flows - Proprietary Fund 23 Statement of Net Position - Fiduciary Fund - Police Officers' Retirement Plan 24 Statement of Changes in Net Position - Fiduciary Fund - Police Officers' Retirement Plan 25 Notes to Basic Financial Statements 26-60 Required Supplementary Information: Budgetary Comparison Schedules: General Fund 61 American Rescue Plan Act Fund 62 Aventura City of Excellence School Fund 63 Don Soffer Aventura High School Fund 64 Notes to Budgetary Comparison Schedules 65 Schedule of Changes in Net Pension Liability and Related Ratios- Police Officers' Retirement Plan 66 Schedule of Contributions - Police Officers' Retirement Plan 67 Schedule of Investment Returns - Police Officers' Retirement Plan 68 Schedule of Changes in Total OPEB Liability and Related Ratios— Other Post-Employment Benefits 69 Supplementary Information: Combining and Individual Fund Financial Statements: Combining Balance Sheet- Nonmajor Governmental Funds 70 City of Aventura, Florida Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2023 (continued) Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds 71 Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -Special Revenue Funds 72-77 Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Debt Service Funds 78-81 Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Capital Projects Funds 82-83 Statistical Section (Unaudited): Net Position by Component 84 Changes in Net Position 85-86 Governmental Activities Tax Revenues by Source 87 Fund Balances of Governmental Funds 88 Changes in Fund Balances of Governmental Funds 89 General Governmental Revenues by Source 90 Assessed Value and Estimated Actual Assessed Value of Taxable Property 91 Property Tax Rates - Direct and Overlapping Governments 92 Principal Property Taxpayers 93 Property Tax Levies and Collections 94 Ratios of Outstanding Debt by Type 95 Ratios of General Bonded Debt Outstanding 96 Direct and Overlapping Governmental Activity Debt 97 Legal Debt Margin Information 98 Demographic and Economic Statistics 99 Occupational Employment by Group - Miami-Dade County, Florida 100 Full-Time Equivalent City Government Employees by Function 101 Operating Indicators by Function 102 Capital Asset Statistics by Function 103 Compliance Section: Independent Auditor's 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 104-105 Independent Auditor's Report on Compliance for Each Major Federal Program and on Internal Control over Compliance Required by the Uniform Guidance 106-108 Schedule of Expenditures of Federal Awards 109 Notes to Schedule of Expenditures of Federal Awards 110 Schedule of Findings and Questioned Costs 111 Management Letter in Accordance with the Rules of the Auditor General of the State of Florida 112-113 Independent Accountant's Report on Compliance with Section 218.415, Florida Statutes 114 INTRODUCTORY SECTION City ®f Aventura Government Center 19200 West Country Club Drive Aventura, Florida 33180 HOWARD S.WEINBERG,ESQ. MAYOR March 21, 2024 COMMISSIONERS AMIT BLOOM RACHEL S.FRIEDLAND BILLY JOEL PAUL A.KRUSS DR.LINDA MARKS MICHAEL STERN To the Honorable Mayor, RONALDJ.WASSON Members of the City Commission CITY MANAGER and Citizens of the BRYANPEGUES City of Aventura, Florida ASST.CITY MANAGER In accordance with Section 11.45(3)(a) (4), Florida Statutes, and Article I, Section 4.11 of the City of Aventura (the "City") Charter, we hereby submit the City's Annual Comprehensive Financial Report (the "ACFR") for the fiscal year ended September 30, 2023. The ACFR includes an Introductory, Financial, Statistical and Compliance section. The financial statements included in the ACFR conform to accounting principles generally accepted in the United States ("GAAP") as set forth by the Governmental Accounting Standards Board ("GASB"). Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that has been established for this purpose. Because the cost of internal controls should not exceed their anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. We believe this data fairly reflects the financial position of the City and the results of its operation. The Certified Public Accounting firm of Keefe, McCullough & Co., LLP has issued an unmodified ("clean") opinion on the City's financial statements for the fiscal year ended September 30, 2023. The independent auditor's report is located at the front of the Financial Section of this report. Management's Discussion and Analysis ("MD&A") immediately follows the independent auditor's report and provides a narrative introduction, overview and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it. Significant Factors Affecting the FY 2022/23 Operations and FY 2023/24 Operating and Capital Budget For the last four years, COVID-19 has caused major disruption in international and U.S. economies and markets.The pandemic had a significant impact on government agencies worldwide. City operations seemed to have returned to pre-COVID levels however,the negative impact of inflation and increased costs for labor and supplies continues. i On March 11, 2021, the U.S. Department of Treasury through the State and Local Fiscal Recovery Funds ("SLFRF") as part of the American Rescue Plan Act allocated $18,525,074 to the City. The intent of the funds is to aid and assist eligible governmental entities in recovery efforts resulting from the economic fallout of the COVID-19 pandemic. At the time this letter was written, the City Commission approved the spending plan for approximately $16.8 million of the allocation. Projects such as park improvements, IT software and hardware upgrades (including a new ERP), premium pay, radio communication system upgrades and stormwater improvements were included in the spending plan. The City's revenues for the FY 2023/24 budget had been conservatively prepared under the assumption that our State Revenue Sharing categories have recovered and rebounded from their COVID-19 lows. All capital items and projects were thoroughly reviewed and prioritized to avoid utilizing any General Fund reserves in balancing the FY 2023/24 operating and capital budget. PROFILE OF THE GOVERNMENT The City was incorporated on November 7, 1995 and is a political subdivision of the State of Florida. It is located on the Intracoastal Waterway in northeast Miami-Dade County (the "County") between Miami and Fort Lauderdale. The City is 3.2 square miles and serves a population of more than 40,000 residents and 2,500 businesses. Pursuant to its Charter,the City operates under a commission-manager form of government. Under this form of government, the City Commission (the "Commission") and the City Manager are the legislative and executive branches of the government, respectively. The Commission enacts Ordinances, the laws of the City, adopts Resolutions authorizing actions on behalf of the City, reviews plans for development and establishes the policies by which the City is governed. The City Manager is the City's Chief Executive Officer who oversees the day-to-day operations, administers the City's service providers, prepares long-range plans and implements the policies established by the Commission. The Commission is comprised of seven (7) members, including the Mayor and six (6) Commissioners. The Mayor is the ceremonial leader of the City and is considered to be "part-time."The Mayor is elected at large to a four-year term. Each Commissioner has the same authority and ability to bring matters to and to discuss and vote on matters before the Commission. A Commissioner is considered to be "part-time" and is elected to serve a four-year term. For election purposes, the William Lehman Causeway divides the City into two (2) areas. The City Charter requires that two (2) Commissioners reside in the northern area and two (2) Commissioners reside in the southern area and two (2) Commissioners and the Mayor shall be elected without regard to residence in any particular area. Mission Statement Our mission is to join with our community to make Aventura a city of the highest quality and a city of excellence. We do this by providing RESPONSIVE, COST EFFECTIVE AND INNOVATIVE local government services. The City employed 178 full-time equivalent positions at September 30, 2023 and provides high-quality public services including General Government, Police, Community Services and Public Works/Transportation to its residents and business community. In FY 2022/23, the Commission addressed the following priorities/goals either through formal adoption or supporting them through policy and/or initiatives: Enhance the safety and security of our residents, schools and businesses: • Continued community outreach initiatives to engage the community in joint problem solving and crime prevention techniques. • Continued to utilize innovative technology throughout the community and with our business partners to prevent, reduce and solve crime. ii • Expanded communications with the public by utilizing social media,community outreach and the Police Department's Community Advisory Panel. • Increased the police overtime and events budgets to meet the increased number of police department sponsored events. Provide and support quality educational choices for Aventura students to succeed academically and become productive citizens: • Continued to operate Aventura City of Excellence School K-8 as an "A" rated high performing school and provide support services thorough various City departments. • Opened the Don Soffer Aventura High School in August 2019 and operates as an "A" rated high performing school. Maintain efficient and responsive government which embraces the highest standards of service and financial stability: • Had no increase in the tax rate for the 27t"year in a row. • Continued to focus on maintaining the City's infrastructure by providing nearly $2.2 million in funding for park improvements and $2.7 million for road resurfacing capital outlay projects. • Maintained healthy reserves to address economic challenges and unforeseen emergencies. • Continued the model of privatizing many City service areas while maintaining a small workforce which has allowed for a more cost-effective service delivery system, as compared to the traditional government structure. • Continued to utilize technology to improve productivity and expand E-government applications. Continue to explore alternate transportation modes to alleviate traffic and support bicycle friendly initiatives: • Continue to fund the free Aventura Express Shuttle Bus system that serves nearly 8,000 riders a month and extend service to new developments. • Continued to implement recommendations included in the Unfiled Master Plan for Pedestrian/Bicycle Connectivity. • Maintained the Aventura B-Cycle bike share program. • Launched the City's first on-demand ride sharing service in FY 2020/21. The City expanded on-demand services in FY 2022/23 through the addition of more vehicles. The on-demand vehicles serve nearly 10,000 riders a month. • Continued to collaborate with state, county and local officials to address traffic issues. Community Engagement, Parks, Programs and Special Events: • Funded part-time seasonal Park Attendants in order to provide adequate coverage in the peak season and accommodate increased attendance at our park facilities. • Continued the afterschool program at the Community Recreation Center for Aventura students that attend Aventura Waterways K-8. • Continued the youth travel soccer and basketball programs that were established to respond to the increased demand for these community services which are offset by user fees. • Continued the"Community Ride with the Police Department"Special Event which provide opportunities for the residents to interact with the Police. • Provided funding to maintain the Aventura Arts & Cultural Center as a state-of-the-art venue and to support a wide variety of programming for all age groups. • Continued to fund Family Movie Nights at Founders Park. • Hosted the Community Recreation Center showcase and Valentine's Day "Spreading the Love" event along with National Dog Day at the Dog park. • Provided adequate funding to maintain our parks and recreational facilities at a high level. • Continued to employ the use of the Youth Council. • Hosted a Winter Wonderland event for the community to celebrate the holidays that included a tree and menorah lighting. • Added two drone shows, one to a movie night event and one to the July 4t"fireworks. iii Environmental Sustainability and Go Green Initiatives • Maintained Tree City USA status. • Continued to improve the energy efficiency of all City facilities including the replacement of worn air conditioning systems. • Ensured that redevelopment projects that require land use/zoning revisions do not have a negative impact on the community. • Included funding to continue to retrofit street lighting throughout the City with more energy efficient LED fixtures. • Monitored and participated in regional efforts to address the impact of rising sea level as well as implemented recommendations found in the City's Comprehensive Stormwater Management Plan that address drainage improvements and the long-range impacts of climate change. • Continued the "Go Green Award Program" sponsored by the Community Services Board to recognize condominiums and businesses that have made efforts to reduce energy consumption and implement recycling programs. • Provide adequate funding to maintain our signature landscape, streets, rights-of-way and facilities and maintained the silver level certification recognition by the Florida Green Local Government Program. Police Department On March 25, 2000, the Aventura Police Department ("APD") became the youngest agency to ever receive accreditation status through the Commission on Accreditation for Law Enforcement Agencies, Inc. ("CALEA"). The accreditation means the APD has been recognized by an independent organization composed of representatives of the International Association of Chiefs of Police, the National Sheriff's Association, the National Organization of Black Law Enforcement Executives and the Police Executive Research Forum and has complied with over 400 standards that have been established as benchmarks of excellence.The APD has met or exceeded international accreditation standards set by CALEA. The CALEA accreditation process increases the agency's ability to prevent and control crime through more effective and efficient delivery of law enforcement services to the community. The process enhances community understanding of the APD and its role in the community, its goals and objectives. For the 81"time, CALEA has awarded reaccreditation to the APD. This prestigious organization has awarded our agency with their Gold Standard and has recognized us as one of their flagship organizations. These coveted awards from a nationally recognized and independent organization, symbolizes the agency's professionalism and distinction. The APD is a leader in the field of technology. The agency completed full integration of our E911 system as well as our Computer Aided Dispatch ("CAD") and Records Management System ("RMS") for reports and computer dispatched calls for service. The merge has allowed our 911 dispatchers to instantly share knowledge of changing events with field units and simultaneously provide existing data on suspects and previous incidents. The APD was the first municipality in the nation to implement shot detection technology in both of its charter schools. This cutting-edge technology that ties into our 911 center provides real time video and mapping location, to our officers and dispatchers, in the event a gunshot is detected on either school campus. We continue to use in car video systems, automatic license plate readers, city-wide TVMS capability and a host of other technological hardware and software to maintain the high level of service to our community. We are very proud of our community service efforts and all of the accomplishments of our Police Explorers Unit. The APD is continually looking for solutions and innovations to truly make us the "City of Excellence". Aventura City of Excellence School The City owns and operates the Aventura City of Excellence School ("ACES"). ACES is a K-8 Municipal Charter School that is part of the City's government and not a separate legal entity or otherwise organized apart from the City.The School operates under a charter granted by the sponsor—the Miami-Dade County Public School District. The School has been well received and has been at full capacity since its inception and has obtained academic success by receiving an "A" grade from the State of Florida for the past 20 years. The School is budgeted to serve 1,032 students in the 2023/24 school year. iv Since its opening on August 25, 2003,the Aventura City of Excellence School has achieved several milestones in the City's short history including: • Being the first School within the City's boundaries and the first municipal sponsored charter school in the County. • In 2005, the School amended the charter to include grades six through eight. • In 2012, the School amended the charter to increase its capacity from 1,020 to 1,032 students beginning with the 2016/17 school year. Don SofferAventura High School The Don Soffer Aventura High School ("DSAHS") is a tuition-free public charter school that opened in August 2019. The DSAHS currently has 829 911 through 1211 grade students enrolled in its fourth year. The 53,418 square-foot school and the 10,250 square-foot gymnasium are located on two (2) acres at 3151 NE 21311 St., Aventura, FL 33180. DSAHS is a municipal charter school managed by Charter Schools USA Inc. ("CSUSA") and is governed by the City. CSUSA, the first education management company to receive corporation system-wide accreditation through AdvancED is one of the nation's leading charter school management companies. CSUSA currently manages nearly 100 schools in five (5) states serving more than 75,000 students in kindergarten through 121" grade. CSUSA's innovative educational advantages include advanced technology, meaningful parental involvement, student uniforms, consistent and fairly-enforced discipline policies, highly qualified and motivated staff, community focus, integrated character education and high academic growth and performance. Students at DSAHS will discover their passion and build a bridge between their rigorous high school experience and future to become impactful global citizens. Aventura Arts& Cultural Center The Aventura Arts & Cultural Center ("AACC") is a beautiful 14,864 square-foot waterfront performing arts facility located on the intracoastal. Its mission is to enhance the quality of life for Aventura by providing a variety of performing arts and relevant cultural programming for audiences of all ages. The AACC has been managed by the Broward Center for the Performing Arts since its opening and is currently in its 131" season of operation. The AACC has become the cultural heart of the City as thousands have enjoyed a wide range of shows and events in this beautiful waterfront facility. Budget Process The City's fiscal year begins on October 15t and ends on September 301" of each year as mandated by Florida statutes. The City Manager submits to the Commission the Proposed Operating and Capital Budget for the coming year no later than July 101" of each fiscal year. The preliminary millage rate is based on the certified taxable value that is received on July 15t. The appropriations contained in the proposed budget shall not exceed the funds derived from taxation and other revenue sources. The budget is approved via Commission adoption of an Ordinance at two (2) public meetings scheduled for September and becomes effective October 111. An annual appropriated budget is adopted for all governmental funds with the exception of the, Federal Forfeiture Fund, the Law Enforcement Trust Fund and the Don Soffer Aventura High School Foundation Fund. A separate budget document for the Aventura City of Excellence Fund and the Don Soffer Aventura High School Fund is adopted by the City in May of each year, based on an annual operational fiscal year ending as of June 301". 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 Commission. The classification detail at which expenditures may not legally exceed appropriations is at the department level. v ECONOMIC CONDITION AND OUTLOOK Local Economy The City is an affluent suburb in a metropolitan area and serves as a major retail and medical economic driver and attraction for South Florida. It is home to the 2.956 million square foot Aventura Mall, one of the biggest indoor shopping destinations in the greater Miami area, with 300+ luxury retail stores. The City is home to many other beautiful shopping centers, fine dining establishments, parks and the Aventura Hospital and Medical Center. The Brightline train station opened in December 2022 at the doorstep of the Aventura Mall and is set to open a footbridge from the station to the Aventura Mall. In addition, the Seritage portion of the Aventura Mall held grand openings for restaurants, retail and entertainment venues throughout the fiscal year. It has provided a significant positive boom for the local economy. In September 2023, the Commission adopted the budget for the fiscal year beginning October 1, 2023 with the same tax rate as the prior year of 1.726. This is the lowest rate in the County, making it the City's 281" year without a property tax increase. The City's property tax component is responsible for approximately 10% of the total tax bill, with the largest portions being incurred from the County and School Board. In FY 2023/24, the City will maintain the same service levels and programs that our residents and businesses enjoyed in the prior year with the following exceptions: • The overtime in the Police Department operational budget was increased by $200,000 due to an anticipated increase in workload demands as well as vacancies. • The actuarial determined percentage for City contributions related to the Police Officers' Retirement Plan will be increasing to 27.70% from 21.78% in the coming fiscal year resulting in an approximate increase of$600,000. • Special events in the Community Services Department increased from $145,000 in FY 2022/23 to $375,000 in FY 2023/24 to accommodate for the additional events such as the Annual 5K, Concert Series and Drone Show. • Recreational programming funding and expenditures increased due to an increase in the current year activity as the enrollment levels rebound and outperform pre-COVID levels. • The City will incur a 15% increase in health insurance and 5% increase in dental insurance over the prior year. • Property insurance is budgeted at a 200%increase, increasing from the current premium of$398,334 to the budgeted premium of$1,195,002. • The new Collective Bargaining Agreement("CBA") effective October 1, 2023 is reflected in the budget for FY 2023/24. More information about the City's economy may be obtained in the MD&A. Major Capital Improvements One of the City's main priorities is to maintain its infrastructure to a high standard. As a result, the City completed the following major capital improvements during FY 2022/23: ✓ Waterways Park field enhancement ✓ Founders Park North field lights upgrade ✓ Installation of misting stations at Waterways, Veterans and Peace Park ✓ Country Club Drive roadway curbing/drainage improvements ✓ Don Soffer Aventura High School cafeteria improvements ✓ Don Soffer Aventura High School digital signage and monument ✓ Roof replacement at the Community Recreation Center ("CRC") ✓ Replaced air conditioning units at ACES and the CRC vi In addition, the following major capital improvements were in process at the end of FY 2022/23: • Founders Park North field enhancement • Founders Park South pickle and tennis ball courts • Waterways Dog Park ADA restroom • Yacht Club Drive Pocket Park • NE 341" Avenue drainage improvements, milling and paving • AACC exterior sealing LONG-TERM FINANCIAL PLANNING AND RELEVANT FINANCIAL POLICIES Maintaining Adequate Fund Balances The City follows GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions which requires that governmental fund financial statements present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. The City's policy is to maintain an adequate General Fund balance to meet seasonal shortfalls in cash flow and reduce susceptibility to emergency and unanticipated expenditures and/or revenue shortfalls. Some of our more significant fund balance classifications include: Committed: This classification includes amounts that can be used only for the specific purposes as determined by adoption of an ordinance by the Commission. Once adopted, the limitation imposed by the ordinance remains in effect until another ordinance either removes or revises the limitation. Effective September 30, 2023, the Commission provided a General Fund Capital Reserve of approximately $188,299 and continued to maintain a Hurricane/Emergency and Disaster Recovery Reserve in the amount of $5 million. Unassigned: This classification includes the residual fund balance for the General Fund and represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. Minimum Level of Unassigned Fund Balance of the General Fund At the beginning of each fiscal year, the total unassigned fund balance shall not be less than 10% of the annual General Fund revenue. If in any fiscal year the City's unassigned fund balance falls below the required threshold, the City shall not utilize any unassigned fund balance to balance the budget. In addition, the City Manager will make every effort to reestablish the minimum unassigned fund balance in a 24 - 36-month period beginning with the year from which the reserve funds fell below the threshold. In FY 2023/24, 10%of the General Fund revenue approximates$4.8 million, while at September 30, 2023 unassigned fund balance approximated $49.0 million. Pay-As-You-Go Financing Although the City Charter makes no reference to limitations in establishing debt (i.e., debt limit), the City has limited its borrowing to prudent levels that are able to be satisfied with existing revenue and cash flow projections. In order to minimize our debt issuance (and the related costs)to when it is absolutely necessary, the City has adopted a pay-as-you-go financing policy for CIP projects which include: • A large number of projects having a relatively small dollar value. • Projects which can be broken into phases with a portion completed each year without impairing the overall effectiveness of the project. • Projects which are of a recurring nature. • Projects where the assets acquired will have relatively short useful lives. vii Privatization of City Services The City utilizes a model of privatizing many of its service areas in order to provide a more cost-effective service delivery system as compared to a traditional government structure. By utilizing outside contractors to provide Building Inspection, Engineering and other services, the City is able to quickly adjust the costs of such services in direct correlation to the demand for the related service. AWARDS AND ACKNOWLEDGEMENTS 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 annual comprehensive financial report for the fiscal year ended September 30, 2022. This was the 27th consecutive year that the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. 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 annual comprehensive financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to GFOA to determine its eligibility for another certificate. The GFOA has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to the City of Aventura for its Popular Annual Financial Report for the fiscal year ended September 30, 2021. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular reports. In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creativity, presentation, understandability, and reader appeal. An Award for Outstanding Achievement in Popular Annual Financial Reporting is valid for a period of one year only.The City of Aventura has received a Popular Award for the last year ended September 30, 2021. We are still awaiting results for the September 30, 2022 report. We believe our current report continues to conform to the Popular Annual Financial Reporting requirements, and we are submitting it to GFOA to determine its eligibility for another Awa rd. In addition, the GFOA presented a Distinguished Budget Presentation Award to the City of Aventura for its annual Budget for the fiscal year beginning October 1, 2022. In order to receive this award, a governmental until must publish a budget document that meets program criteria as a policy document, as a financial plan, as an operations guide, and as a communication device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements,and we are submitting it to GFOA to determine its eligibility for another award. Earning all three awards from the GFOA establishes the City of Aventura as a Triple Crown Winner in 2021. We are awaiting the results on the City's PAFR to determine if the City is a Triple Crown Winner in 2022. The preparation of this report would not have been possible without the efficient and dedicated service of the Finance Department and as such we would like to express our appreciation to all members of the Department who assisted in this effort. In addition, we give credit to City Commission for their continued interest and support in planning and conducting the City's financial operations in a responsible and progressive manner. Respectfully submitted, Ronald J. W n Melissa Cruz City Manager Finance Director viii CITY OF AVENTURA, FLORIDA LIST OF PRINCIPAL OFFICIALS Title Name Mayor Howard Weinberg, Esq. Commissioner Billy Joel Commissioner Amit Bloom Commissioner Rachel S. Friedland, Esq. Commissioner Paul A. Kruss Commissioner Dr. Linda Marks Commissioner Michael Stern City Manager Ronald J. Wasson City Attorney Weiss Serota Helfman Cole & Bierman, P.L. Assistant City Manager Bryan Pegues Community Development Director Keven Klopp Information Technology Director Carlos Fernandez Finance Director Melissa Cruz Human Resources Gladys Carcamo City Clerk Ellisa L. Horvath Arts & Cultural Center General Manager Jeff Kiltie Community Services Director Kimberly Merchant Public Works/Transportation Director Jake Ozyman Chief of Police Michael Bentollila Don Soffer Aventura High School Principal Geoff McKee Aventura City of Excellence School Principal Ana Melhuish City Auditor Keefe McCullough ix CITY OF AVENTURA ORGANIZATION CHART 4) Residents City Commission City Attorney City Manager City Clerk l;::ai S•r.::s. Admmistral on 1.1 nutes Budget,CIF Preparation Records Retention Customer ervice C*r"l Support Organaati nalOversght Elections Public Safety Community Finance Community Development Services Department Department Department Department Po Plan r7 Fina^ce Account ng Paws Patrol Zoning Purchasing Special Events Community Relations Bu,ld:ng In:pecbons Recreation Programming Criminal Investigabons Code Enforcement Athletic leagues Traffic Enforcement Economic Development Community Recreation Center Emergency Preparedness Occupahonal Licenses Community Garden Charter School Arts&Cultural Human Information Public Worksl Center Resources Technology Transportation Department Department Department Department Department Personnel Information Management ROW Medan Maintenance K 6 Schoc'� Facility Management MASS Train&t Don Softer Aventura Performing Arts Programming Risk Aanagement Communications Hgh School' Community Facilities Maintenance Capital Protects Management Provided by CSUSA Stormwater Drainage Maintenance Ftoodpla:n Management X Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Aventura Florida For its Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2022 C4.:�� P- Executive Director/CEO xi FINANCIAL SECTION VE Keefe brr(.77% �' McCullough CPAs +Trusted Advisors INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Commission City of Aventura, Florida Opinions 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, 2023, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. In our opinion, based on our audit and the report of the 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, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. We did not audit the financial statements of the City of Aventura Police Officers' Retirement Plan Pension Trust Fund, which represent 84 percent, 85 percent, and 51 percent, respectively, of the assets, fund balance/net position, and revenues/additions of the aggregate remaining fund information as of September 30, 2023 and the respective changes in financial position for the year then ended. Those statements were audited by another auditor whose reports have been furnished to us, and our opinions, insofar as it relates to the amounts included for the City of Aventura Police Officer's Retirement Plan Pension Trust Fund, are based solely on the reports of the other auditors. Basis for Opinions 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. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. SOUTH FLORIDA BUSINESS JOURNAL KMCcpa.corn 1 6550 N Federal Hwy,4th Floor, Fort Lauderdale, FL 33308 Phone:954.771.0896 Fax:954.938.9353 v©® Top 25 Accounting Firms I South Florida Business Journal Top 400 Accounting Firms in the U.S.I INSIDE Public Accounting 1 BEST PLACES TO WORK City of Aventura, Florida In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. 2 City of Aventura, Florida Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 5-14,the budgetary schedules on pages 61-64 and the schedules related to pensions and other post-employment benefits on pages 66-69, be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 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 about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining and individual nonmajor fund financial statements, budgetary comparison schedules, and schedule of expenditures of federal awards as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us and other auditors. In our opinion, based on our audit and the report of the other auditors, the combining and individual nonmajor fund financial statements, budgetary comparison schedules, and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's reportthereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 3 City of Aventura, Florida Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 21, 2024, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City's internal control over financial reporting and compliance. KEEFE McCULLOUGH Fort Lauderdale, Florida March 21, 2024 4 City of Aventura, Florida Management's Discussion and Analysis September 30, 2023 As the City of Aventura's (the "City") management, we offer the City's financial statement readers this narrative overview and analysis of the City's financial activities for the fiscal year ended September 30, 2023. We encourage readers to consider the information presented herein in conjunction with the Letter of Transmittal, which can be found on pages i through viii of this report. All amounts, unless otherwise indicated, are expressed in thousands of dollars. Financial Highlights • The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by approximately $152.6 million (net position). Of this amount, approximately $48.0 million represents unrestricted net position, which may be used to meet the City's ongoing obligations to citizens and creditors. • The City's total net position increased by approximately $14.6 million over the course of this year's operations. The net position of the City's governmental activities increased by approximately $14.2 million while the net position of the City's business type activities increased by approximately$0.4 million. • At the close of the current fiscal year, the City's governmental funds reported combined fund balances of approximately $66.5 million, an increase of approximately $12.8 million in comparison with the prior year. Approximately 65.0% ($43.3 million) is available for spending at the government's discretion (unassigned fund balance). • At the end of the current fiscal year, unassigned fund balance of the General Fund was approximately $49.0 million or 112.4% of total General Fund expenditures (inclusive of transfers out). Of this balance, $5.0 million has been committed to the City's disaster recovery fund, $0.2 million is reserved for capital purchase in the subsequent year, $0.3 million for the benefit of the Don Soffer Aventura High School, $0.5 million has been assigned for encumbrances, $1.2 million is classified as nonspendable. 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 other financial information that presents combining and individual fund financial statements and budgetary comparison schedules. 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 Fund Financial Statements&Budgetary Comparison Schedules 5 City of Aventura, Florida Management's Discussion and Analysis September 30, 2023 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 City (except fiduciary activities) are not proprietary or are operated similar to is the trustee or agent for fiduciary private business someone else's resources Required financial Statement of net position Balance sheet Statement of net position Statement of net position statements Statement of activities Statement of revenues, Statement of revenues, Statement of changes in expenditures,and net expenses,and changes in net position changes in fund balances net position Statement of cash flows Accounting basis and Accrual accounting and Modified accrual Accrual accounting and Accrual accounting and measurement focus economic resources focus accounting and current economic resources focus economic resources focus financial resources focus Type of asset, All assets and liabilities, Only assets expected to be All assets and liabilities, All assets and liabilities, liability,and both financial and capital, used up and liabilities that both financial and capital, both short-term and long- deferred and short-term and long- come due during the year and short-term and long- term. It also includes the outflows/inflows term. It also includes the to soon thereafter,no term. It also includes the consumption and the information consumption and the capital assets and long consumption and the acquisition of net assets acquisition of net assets term liabilities are acquisition of net assets that applies to future that applies to future included. It also includes that applies to future period(s). period(s). the consumption and the period(s). acquisition of net assets that applies to future period(s). 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 position and statement of activities. As described below, these statements do not include the City's fiduciary activities because resources from 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 Position presents the City's long-term and short-term financial information on the assets held and liabilities owed, as well its deferred outflows/inflows of resources. The City's assets are reported when acquired and its 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 it incurs. On the other hand, the City reports liabilities, such as other post- employment benefits even though these liabilities might not be paid until several years into the future. Deferred outflows/inflows of resources represent the consumption/acquisition, respectively, of net assets that applies to a future period(s). 6 City of Aventura, Florida Management's Discussion and Analysis September 30, 2023 Basic Financial Statements (continued) Government-wide financial statements (continued) The difference between the City's total assets, deferred outflows of resources, total liabilities and deferred inflows of resources is net assets. Over time, increases or decreases in net position 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 position, 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, community services and public works. The City's business-type activities include stormwater utility. Fund financial statements Unlike government-wide financial statements, the focus of fund financial statements is directed to the City's specific activities 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 City's funds 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 changes in fund balances. These statements are prepared on an accounting basis that is significantly different from that used to prepare the government-wide financial statements. In general, these financial statements have a short-term emphasis and, for the most part, measure and account for cash and other assets that can easily be converted to cash. For example, amounts reported on the balance sheet include items such as cash and receivables but do not include capital assets such as land and buildings. The difference between the fund's total assets, deferred outflows of resources, total liabilities and deferred inflows of resources is 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. 7 City of Aventura, Florida Management's Discussion and Analysis September 30, 2023 Basic Financial Statements (continued) 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 position presented in the governmental activities' column on the statement of net position. Also, there is an analysis after the statement of revenues, expenditures and changes in fund balances that reconciles the total change in fund balances for all governmental funds to the change in net position as reported in the governmental activities' column in the statement of activities. Proprietary funds Financial statements consist of a statement of net position, statement of revenues, expenses, and changes in net position 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 customers a fee for their 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. Although the City does not have any Internal Service Funds, such funds are used to account for services provided and billed on an internal basis. 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 another party's benefit outside the government. Fiduciary funds are not reflected in the government-wide financial statement because resources of those funds are not available to support the City's own programs. Fiduciary financial statements consist of a statement of net position and a statement of changes in net position. The City reports one fiduciary fund to account for the Police Officers' Retirement Plan Fund. 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 defined benefit pension plan including a schedule of funding progress and schedule of employer and State of Florida contributions as well as a schedule of funding progress for other post-employment benefits. 8 City of Aventura, Florida Management's Discussion and Analysis September 30, 2023 Combining and Individual Fund Financial Statements and Budgetary Schedules Combining statements referred to earlier in connection with nonmajor governmental, internal service and fiduciary funds are presented immediately following the required supplementary information. Additional budgetary schedules are presented in this section including, as applicable, nonmajor special revenue funds, debt services funds and capital projects funds. Government-Wide Financial Analysis The table below presents a summary of net position as of 2023 and 2022, derived from the government-wide Statement of Net Position: Net Position (in thousands) Governmental Business-Type Activities Activities Total 2023 2022 2023 2022 2023 2022 Assets: Current and other assets $ 85,599 $ 80,072 $ 1,751 $ 1,406 $ 87,350 $ 81,478 Capital assets 102,063 98,344 9,677 9,672 111,740 108,016 Total assets 187,662 178,416 11,428 11,078 199,090 189,494 Total deferred outflows of resources 15,499 5,968 - - 15,499 5,968 Liabilities: Long-term liabilities 37,829 22,671 42 - 37,871 22,671 Other liabilities 21,886 27,674 108 212 21,994 27,886 Total liabilities 59,715 50,345 150 212 59,865 50,557 Total deferred inflows of resources 2,078 6,854 - - 2,078 6,854 Net position: Net investment in capital assets 86,776 81,608 9,677 9,672 96,453 91,280 Restricted 8,228 8,507 - - 8,228 8,507 Unrestricted 46,364 37,070 1,601 1,194 47,965 38,264 Total net position $ 141,368 $ 127,185 $ 11,278 $ 10,866 $ 152,646 $ 138,051 As noted earlier, net position 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 and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by approximately$152.6 million. The largest component of the City's net position is net investment in capital assets and is 63.2% of total net position.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 its citizens with quality services. Consequently, this component of net position is 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 position is unrestricted (resources available for spending) and is 31.4% of total net position. Restricted net position represents 5.4% of total net position and contains resources that are subject to external restrictions on how they can be used. Capital assets increased approximately$3.7 million and net investment in capital assets increased by approximately $5.2 million, primarily due to the net effect of new capital/infrastructure projects, increase in accumulated depreciation, disposal of equipment and decrease in related debt. The increase in net investment in capital assets is due to current year additions outpacing current depreciation. The City is investing a significant portion of the State and Local Fiscal Recovery Funds in capital assets. Significant improvements have been made to improve drainage and transportation. Major additions are underway at several parks, including artificial turf on the soccer fields and new tennis and pickleball courts. 9 City of Aventura, Florida Management's Discussion and Analysis September 30, 2023 Government-Wide Financial Analysis (continued) Over time, increases and decreases in net position measure whether the City's financial position is improving or deteriorating. The City's operations have fully resumed after being suspended due to the impact of the COVID-19 pandemic, restoring lost revenue. In the current fiscal year, property taxes increased by approximately$1.6 million as the assessed value of our taxable property increased from the prior year, with no change in our ad valorem millage rate. The City experienced a $9.9 million increase in operating grants. $6.5 million was related to funding from the American Rescue Plan Act ("ARPA"), and the schools combined received $2.7 million in Elementary and Secondary School Emergency Relief ("ESSER") grant funding. Higher interest rates increased investment income by approximately $4.2 million. Charges for services increased by $2.2 million, primarily from an increase in services and enrollment in the Community Services Department. The table below presents a summary of changes in net position for the years ended September 30, 2023 and 2022, as derived from the Government-Wide Statement of Activities: Changes in Net Position(in thousands) Governmental Business-Type Activities Activities Total 2023 2022 2023 2022 2023 2022 Revenues and transfers: Program revenues: Charges for services $ 15,963 $ 13,956 $ 1,496 $ 1,332 $ 17,459 $ 15,288 Operating grants and contributions 27,447 17,543 - - 27,447 17,543 Capital grants and contributions 1,112 1,500 458 1,112 1,958 General revenues: Property taxes 18,821 17,216 - 18,821 17,216 Utility and other locally levied taxes 11,136 10,139 11,136 10,139 Franchise fees 5,737 5,139 5,737 5,139 Intergovernmental revenues 9,066 8,113 9,066 8,113 Investment income(loss) 3,215 (921) 47 (7) 3,262 (928) Other revenues 299 619 - 299 619 Total revenues and transfers 92,796 73,304 1,543 1,783 94,339 75,087 Expenses: General government 8,750 7,429 - - 8,750 7,429 Public safety 30,201 28,261 30,201 28,261 Community services 33,753 26,492 33,753 26,492 Public works 5,322 5,996 5,322 5,996 Interest and fiscal charges 587 647 - - 587 647 Stormwater utility - - 1,131 1,252 1,131 1,252 Total expenses 78,613 68,825 1,131 1,252 79,744 70,077 Change in net position 14,183 4,479 412 531 14,595 5,010 Net position,beginning of year 127,185 122,706 10,866 10,335 138,051 133,041 Net position,end of year $ 141,368 $ 127,185 $ 11,278 $ 10,866 $ 152,646 $ 138,051 The activities for the City reflect an overall increase in revenues of $19.3 million and expenses increased by $9.7 million. The governmental activities were responsible for most of the increases. Program revenues increased by $11.2 million, primarily due to increases in charges for services and operating grants and contributions.The majority of the increase was related to the Coronavirus State & Local Fiscal Recovery Funds. General revenues increased by$8.0 million, with the majority coming from Ad valorem taxes and investment income. 10 City of Aventura, Florida Management's Discussion and Analysis September 30, 2023 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, unrestricted fund balance (committed, assigned and unassigned) may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. The General Fund is the City's chief operating fund and at end of the current fiscal year its total fund balance approximated $56.2 million. The City's approved fund balance policy requires a hurricane/emergency reserve of $5.0 million. In addition, the Commission annually approves a portion of fund balance to be reserved for future capital projects.As a measure of the General Fund's liquidity, it may be useful to compare both unrestricted fund balance and total fund balance to total general fund expenditures. Unassigned fund balance equals approximately$49.0 million or 87.2%of the General Fund total fund balance. This amount represents approximately 112.4% of total general fund expenditures (inclusive of transfers out) and is available for spending at the government's discretion. The total fund balance of the City's General Fund increased by$10.9 million. During the current fiscal year revenues increased by $3.8 million and expenditures decreased by $5.4 million, respectively (including transfers in & out). Ad Valorem taxes increase by $1.6 million, with no increase in the millage rate. Many state-shared revenues rebounded from the prior year, including state revenue sharing and half-cent sales tax. These revenues increased by $0.1 million and $0.5 million, respectively. The franchise agreements with the services providers, generated an additional $0.6 million. Charges for services increased by $1.2 million as a result of increased participation in Community Services programs. Investment income increased by $2.3 million as a result of higher interest rates. The American Rescue Plan Act Fund is used to record the activity related to the Federally funded Coronavirus State & Local Fiscal Recovery Funds grant. Fund balance increased by $0.5 million, due to the City earning interest on the cash advances from the Federal Government.The fund recognized $6.5 million in revenues and expenditures. The Aventura City of Excellence School Fund is used to record the operations of the Aventura City of Excellence School ("ACES").The School's fund balance decreased by$1.4 million. Revenues increased by $4.0 million and expenditures increased by approximately $3.5 million. The increase in costs is due to increased spending to address negative impacts of the pandemic. The expenditures will be reimbursed in the future through the ESSER Grant funding. The Don Soffer Aventura High School Fund is used to record the operations of the Don Soffer Aventura High School, which is in its sixth year of operations. The student population was being phased in over four years, with full enrollment achieved in fiscal year 2022/23. The revenues and expenditures increased by approximately $4.0 million and $2.0 million, respectively. Proprietary fund The proprietary fund is used to record the operations of the stormwater-related activities and experienced an increase in net position of$0.4 million over the prior year.There were no significant changes in the operation. Revenues and expenses remained comparable to the prior year. 11 City of Aventura, Florida Management's Discussion and Analysis September 30, 2023 Financial Analysis of the City of Aventura's Funds (continued) General Fund Budgetary Highlights During the year,the original budget was amended to reflect an additional $.3 million in new revenues and expenditures. Revenues and expenditures increased approximately as follows: • $0.4 million expenditures related to the automatic reappropriation of capital-related encumbrances for capital projects that were in process at the end of fiscal year 2022. • $3.1 million decrease in revenues and expenditures as a result of creating the new Building Fund. All revenues and expenditures were transferred to this fund. • $1.3 million increase related to the Community Services activities.The expenditures were offset by additional charges for services, in their respective categories. • $.6 million increase as a result of budgeting police off-duty services in the general fund and eliminating budgeting it in a separate special revenue fund. • $1.3 million was allocated to the remaining departments to cover unanticipated expenditures that occurred throughout the year. During the year, revenues exceeded budgetary estimates and expenditures were less than budgetary estimates, resulting in the net increase to fund balance of approximately$10.9 million. As explained earlier, much of the unrestricted fund balance will continue to be utilized in future years to fund various capital needs. Capital Assets As of September 30, 2023, and 2022, the City had $111.7 million and $108.0 million, 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 2023 2022 2023 2022 2023 2022 Land $ 25,645 $ 25,645 $ - $ - $ 25,645 $ 25,645 Buildings 38,380 40,395 38,380 40,395 Improvements other than buildings 8,404 8,970 8,404 8,970 Furniture,machinery and equipment 5,467 4,619 - - 5,467 4,619 Infrastructure 18,374 18,431 9,321 9,564 27,695 27,995 Right-to-use lease assets 322 - 76 - 398 - Construction in progress 5,471 284 280 108 5,751 392 Total $ 102,063 $ 98,344 $ 9,677 $ 9,672 $ 111,740 $ 108,016 Additional information can be found in Note 7—Capital Assets. 12 City of Aventura, Florida Management's Discussion and Analysis September 30, 2023 Debt Administration As of year-end, the City had $15.0 million in debt outstanding compared to the $16.9 million last year, a $1.9 million decrease. All debt is secured only by a covenant to budget and appropriate. Bonded Debt and Notes Payable(in thousands) Governmental Business-Type Activities Activities Total 2023 2022 2023 2022 2023 2022 Non-Ad Valorem bonds $ 14,980 $ 16,880 $ - $ - $ 14,980 $ 16,880 Additional information can be found in Note 8— Long-Term Liabilities of Governmental Activities. 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 including cities, counties and school boards primarily rely on property and a limited array of permitted other taxes (e.g., utility taxes, franchise fees and occupational licenses) and intergovernmental revenues to provide funding for their governmental activities. For business-type activities and certain governmental activities(e.g., construction services and recreational programs), a fee or charge is paid by those that utilize the service. The budget does not include any significant expansion or additional areas of service. For the fiscal year 2023/24 budget, the City changed the presentation its CIP reserves. In previous years, the City showed the anticipated CIP funding as a gross total. In fiscal year 2023/24 and moving forward, the City will display the CIP needs as a net amount.This change decreased the budget, compared to prior year by approximately $12.8 million. Excluding the change in CIP presentation, operating cost increased by$4.8 million. Once again, our strong fiscal policies and prudent budgeting have assisted in the maintenance of all existing service levels and avoiding raising the tax rate for the 28th year in a row. Strong fiscal policies and prudent budgeting have enabled the City to maintain the second lowest tax rate within the County, during fiscal year 2022/23, while at the same time provide high-quality services to our residents. The City experienced an 10.0% increase in property values over the prior year while the addition of new construction totaled by approximately $22.4 million. This is the second year in the last five years that we have seen an increase in the City's existing property values. The FY 2023/24 budget totals $63.4 million (net of inter-fund elimination) or 22.7% less than the previous year. The large decrease is due mostly to a change in accounting presentation of the CIP reserve, mentioned above. Capital Outlay expenditures are budgeted at $9.5 million, a decrease of $10.7 million as compared to the prior year. In the coming year, funding has been planned and provided for park facility improvements, road resurfacing, police vehicles as well as the continued investment in state-of-the-art technology to better serve and protect our residents. In addition, the City has made it a priority to maintain its infrastructure (e.g., government buildings and its park facilities) to a very high standard in order to ensure their sustainability well into the future. Operating costs increased by $4,803,129 or 10.6% as compared to the previous year. The budget maintains our current level for all City services except the following areas: • An increase of 15% for health insurance and 5% for dental insurance was considered in the development of the 2023/24 budget. • Property insurance was budgeted at a 200% increase, increasing from the current premium of$398,334 to the budgeted premium of$1,195,002. 13 City of Aventura, Florida Management's Discussion and Analysis September 30, 2023 Economic Factors and Next Year's Budgets and Rates (continued) • Police Department expenditures increased by $1.6 million primarily due to personnel costs, including increased health insurance and pension costs. • Building Inspection services, permit revenue and other miscellaneous revenues now budgeted in the Building Fund as of the City's FY 2022/23, increased by $893,132 due to an increase in development activity. • The Community Services Department budget increased by $815,332 primarily related to costs associated with higher demand for recreational programs,as they rebound from the negative COVID-19 impacts and return to at or above pre-pandemic levels. Additional special events, such as a concert series, an annual 5K, and Drone shows. • The City's on-demand transportation service increased by $325,000 due to further expansion of this service. • The remaining increase in the budget was spread across the remaining departments and Non-Departmental. 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. 14 BASIC FINANCIAL STATEMENTS City of Aventura Statement of Net Position September 30, 2023 Governmental Business-Type Activities Activities Total Assets: Cash,cash equivalents and investments $ 77,032,364 $ 1,450,375 $ 78,482,739 Receivables,net of allowance for uncollectibles 2,253,528 - 2,253,528 Due from other governments 2,457,275 300,522 2,757,797 Prepaids and other assets 2,429,235 - 2,429,235 Inventories 32,935 32,935 Internal balances 1,394,197 - 1,394,197 Capital assets: Nondepreciable 31,115,732 279,883 31,395,615 Depreciable(net) 70,947,081 9,396,917 80,343,998 Total assets 187,662,347 11,427,697 199,090,044 Deferred outflows of resources: Deferred outflows relating to pensions 14,290,960 - 14,290,960 Deferred outflows relating to other post employment benefits(OPEB) 1,031,003 1,031,003 Deferred charge on refunding 176,776 176,776 Total deferred outflows of resources 15,498,739 - 15,498,739 Liabilities: Accounts payable 2,868,594 108,158 2,976,752 Accrued liabilities 4,122,358 - 4,122,358 Due to other governments 30,786 30,786 Unearned revenues 11,309,392 11,309,392 Accrued interest payable 47,484 - 47,484 Noncurrent liabilities: Due within one year 3,507,936 20,278 3,528,214 Due in more than one year 37,828,734 21,596 37,850,330 Total liabilities 59,715,284 150,032 59,865,316 Deferred inflows of resources: Deferred inflows relating to pensions 638,410 - 638,410 Deferred inflows relating to other post employment benefits(OPEB) 1,439,377 1,439,377 Total deferred inflows of resources 2,077,787 - 2,077,787 Net position: Net investment in capital assets 86,775,707 9,634,926 96,410,633 Restricted for: Public works/transportation 6,343,936 - 6,343,936 Public safety/law enforcement 776,704 776,704 Capital projects 731,057 731,057 Debt service 376,330 - 376,330 Unrestricted 46,364,281 1,642,739 48,007,020 Total net position $ 141,368,015 $ 11,277,665 $ 152,645,680 * Charter Schools are presented as of June 30,2023. The accompanying notes to the financial statements are an integral part of these statements. 15 City of Aventura,Florida Statement of Activities For the Year Ended September 30,2023 Net Revenue(Expense)and Program Revenues Change in Net Position Operating Capital Charges for Grants and Grants and Governmental Business-Type Functions/Programs: Expenses Services Contributions Contributions Activities Activities Total Primary Government: Governmental activities: General government $ 8,474,985 $ - $ 164,203 $ $ (8,310,782) $ $ (8,310,782) Public safety 30,659,924 11,836,110 6,597,703 (12,226,111) (12,226,111) Community services 33,684,863 3,928,853 20,674,989 1,111,820 (7,969,201) (7,969,201) Public works 5,207,367 197,493 9,507 - (5,000,367) (5,000,367) Interest and fiscal charges 586,795 - - (586,795) (586,795) Total governmental activities 78,613,934 15,962,456 27,446,402 1,111,820 (34,093,256) (34,093,256) Business-type activities: Stormwater utility 1,131,279 1,496,112 - - 364,833 364,833 Total primary government $ 79,745,213 $ 17,458,568 $ 27,446,402 $ 1,111,820 (34,093,256) 364,833 (33,728,423) General revenue: Ad valorem taxes 18,820,560 - 18,820,560 Utility service and other locally levied taxes 11,135,742 11,135,742 Franchise fees 5,736,832 5,736,832 Intergovernmental,unrestricted 9,065,470 - 9,065,470 Investment income 3,218,155 46,946 3,265,101 Miscellaneous 299,113 - 299,113 Total general revenues 48,275,872 46,946 48,322,818 Change in net position 14,182,616 411,779 14,594,395 Net position,beginning 127,185,399 10,865,886 138,051,285 Net position,ending $ 141,368,015 $ 11,277,665 $ 152,645,680 * Charter Schools are presented for the year ended June 30,2023. The accompanying notes to the financial statements are an integral part of these statements. 16 City of Aventura, Florida Balance Sheet- Governmental Funds September 30, 2023 Major Funds Aventura American City of Don Soffer Rescue Excellence Aventura Nonmajor Total General Plan Act School High School Governmental Governmental Fund Fund Fund* Fund* Funds Funds Assets: Cash and cash equivalents and investments $ 54,605,855 $ 11,223,302 $ 400 $ 423,833 $ 10,778,974 $ 77,032,364 Accounts receivable,net 2,223,794 - - 29,734 - 2,253,528 Due from other funds 2,262,978 - 1,394,197 - 3,657,175 Due from other governments 899,401 781,614 227,635 548,625 2,457,275 Inventories 32,935 - - - 32,935 Prepaid items and other assets 1,174,850 - 75,396 81,822 1,097,167 2,429,235 Total assets $ 61,199,813 $ 11,223,302 $ 857,410 $ 2,157,221 $ 12,424,766 $ 87,862,512 Liabilities: Accounts payable $ 1,281,610 $ 541,496 $ 212,822 $ 240,282 $ 592,384 $ 2,868,594 Accrued liabilities 2,880,467 - 655,454 461,241 125,196 4,122,358 Due to other funds - 2,262,978 - - 2,262,978 Due to other governments 5,141 - - 25,645 30,786 Unearned revenues 833,163 10,316,229 - - 160,000 11,309,392 Total liabilities 5,000,381 10,857,725 3,131,254 701,523 903,225 20,594,108 Deferred inflows of resources: Unavailable revenues - - 728,333 - - 728,333 Total deferred inflows of resources - 728,333 728,333 Fund balances: Nonspendable: Inventories 32,935 - - - 32,935 Prepaid items and other assets 1,174,850 75,396 81,822 1,097,167 2,429,235 Restricted for: Public works/transportation - - - 6,343,936 6,343,936 Public safety/law enforcement 776,704 776,704 Community development 2,196,347 2,196,347 Capital projects 731,057 731,057 Debt service - 376,330 376,330 Committed for: Capital reserves 188,299 - 188,299 Hurricane/emergency and disaster recovery operating reserves 5,000,000 5,000,000 Assigned for: Charter school operations 256,022 - 256,022 Encumbrances 516,484 4,412,929 - 4,929,413 Unassigned(deficit) 49,030,842 (4,047,352) (3,077,573) 1,373,876 - 43,279,793 Total fund balances(deficit) 56,199,432 365,577 (3,002,177) 1,455,698 11,521,541 66,540,071 Total liabilities,deferred inflows of resources,and fund balances(deficit) $ 61,199,813 $ 11,223,302 $ 857,410 $ 2,157,221 $ 12,424,766 $ 87,862,512 * As of June 30,2023. The accompanying notes to financial statements are an integral part of these statements. 17 City of Aventura, Florida Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position September 30, 2023 Amounts reported for governmental activities in the statement of net position are different as a result of: Total fund balances -governmental funds $ 66,540,071 Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds: Governmental capital assets $ 191,130,564 Less accumulated depreciation (89,067,751) 102,062,813 Certain revenues are considered deferred inflows of resources in the fund financial statements due to availability of funds; under full accrual accounting they are considered revenues. 728,333 Long-term liabilities are not due and payable in the current period, and therefore, are not reported in the governmental funds: Bonds payable $ (14,980,000) Lease payable (344,163) Other post employment benefits (OPEB) liability (1,229,904) Net pension liability (20,578,866) Compensated absences (4,203,737) Accrued interest payable (47,484) Deferred charge on refunding 176,776 (41,207,378) Certain funds related to pension and other post employment benefits (OPEB) liabilities; are not reported in the governmental funds: Deferred outflows relating to pensions $ 14,290,960 Deferred inflows relating to pensions (638,410) Deferred outflows relating to other post employment benefits (OPEB) 1,031,003 Deferred inflows relating to other post employment benefits (OPEB) (1,439,377) 13,244,176 Net position of governmental activities $ 141,368,015 The accompanying notes to financial statements are an integral part of these statements. 18 City of Aventura, Florida Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended September 30, 2023 Major Funds Aventura American City of Don Soffer Rescue Excellence Aventura Nonmajor Total General Plan Act School High School Governmental Governmental Fund Fund Fund* Fund* Funds Funds Revenues: Ad valorem taxes $ 18,820,560 $ $ $ $ $ 18,820,560 Utility service and other locally levied taxes 11,135,742 11,135,742 Franchise fees 5,736,832 5,736,832 Licenses,permits and impact fees 17,905 - 5,546,325 5,564,230 Intergovernmental revenues 5,944,654 6,496,416 10,416,766 8,210,195 3,447,798 34,515,829 Charges for services 5,372,540 - 500,687 238,780 30,519 6,142,526 Fines and forfeitures 4,212,371 - - - 43,329 4,255,700 Investment income 2,279,969 492,491 7,229 91,988 346,478 3,218,155 Miscellaneous 99,024 - 3,039,309 1,656,728 72,000 4,867,061 Total revenues 53,619,597 6,988,907 13,963,991 10,197,691 9,486,449 94,256,635 Expenditures: Current: General government 6,945,339 651,245 - - - 7,596,584 Public safety 23,325,865 - - - 4,400,817 27,726,682 Community services 5,344,010 14,745,184 8,380,593 - 28,469,787 Public works 3,251,128 - - - 2,594,971 5,846,099 Capital outlay 2,351,529 5,845,171 342,762 375,265 654,661 9,569,388 Debt service: Principal - - - - 1,900,000 1,900,000 Interest - - - - 552,310 552,310 Total expenditures 41,217,871 6,496,416 15,087,946 8,755,858 10,102,759 81,660,850 Excess(deficiency)of revenues over expenditures 12,401,726 492,491 (1,123,955) 1,441,833 (616,310) 12,595,785 Other financing sources(uses): Transfers in 535,449 - 150,000 - 2,535,100 3,220,549 Transfers out (2,391,100) (444,000) (535,449) (3,370,549) Debt proceeds 344,163 - 344,163 Total other financing sources(uses) (1,511,488) - (294,000) - 1,999,651 194,163 Net change in fund balances 10,890,238 492,491 (1,417,955) 1,441,833 1,383,341 12,789,948 Fund balances(deficit),beginning** 45,309,194 (126,914) (1,584,222) 13,865 10,138,200 53,750,123 Fund balances(deficit),end of year $ 56,199,432 $ 365,577 $ (3,002,177) $ 1,455,698 $ 11,521,541 $ 66,540,071 * For the year ended June 30,2023. ** Effective October 1,2022,the City separated its Building Fund from General Fund The accompanying notes to financial statements are an integral part of these statements. 19 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, 2023 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances -total governmental funds $ 12,789,948 Governmental funds report capital outlays as expenditures; however, in the statement of activities, the cost of those assets is depreciated or amortized over their estimated useful lives and reported as depreciation/amortization expense. Expenditure for capital assets $ 9,575,993 Less: net book value of retirements and transfers (4,057) Less: current year depreciation/amortization (5,853,345) 3,718,591 The issuance of long-term debt provides current financial resources to governmental funds, however, has no effect on net position. (344,163) Revenues that are earned but not received within the availability period are recognized in the statement of activities when earned and subsequently recognized in the governmental fund financial statements as they become available. The difference is recorded as a reconciling item. (1,306,028) Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. 1,900,000 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: Change in other post employment benefits (OPEB) liability $ 931,256 Change in net pension liability (17,711,852) Change in compensated absences (106,265) Amortization of deferred charges (39,161) Change in accrued interest payable 4,676 (16,921,346) Certain changes related to pension and other post employment benefits (OPEB) liabilities are not reported in the net change in the governmental funds: Change in deferred outflows relating to pensions $ 9,829,338 Change in deferred inflows relating to pensions 5,589,918 Change in deferred outflows relating to other post employment benefits (OPEB) (259,707) Change in deferred inflows relating to other post employment benefits (OPEB) (813,935) 14,345,614 Change in net position of governmental activities $ 14,182,616 The accompanying notes to financial statements are an integral part of these statements. 20 City of Aventura, Florida Statement of Net Position Proprietary Fund September 30, 2023 Stormwater Utility Fund Assets: Current assets: Cash, cash equivalents and investments $ 1,450,375 Due from other governments 300,522 Total current assets 1,750,897 Noncurrent assets: Capital assets nondepreciable 279,883 Capital assets depreciable (net) 9,396,917 Total noncurrent assets 9,676,800 Total assets 11,427,697 Liabilities: Current liabilities: Accounts payable and accrued liabilities 108,158 Subscription liabilities 20,278 Total current liabilities 128,436 Noncurrent liabilities: Subscription liabilities 21,596 Total liabilities 150,032 Net position: Net investment in capital assets 9,634,926 Unrestricted 1,642,739 Total net position $ 11,277,665 The accompanying notes to financial statements are an integral part of these statements. 21 City of Aventura, Florida Statement of Revenues, Expenses and Changes in Net Position Proprietary Fund For the Year Ended September 30, 2023 Stormwater Utility Fund Operating revenues: Charges for services $ 1,496,112 Operating expenses: Cost of sales and services 615,257 Depreciation and amortization expense 516,022 Total operating expenses 1,131,279 Operating income 364,833 Nonoperating revenues (expenses): Investment income 46,946 Total nonoperating revenues (expenses) 46,946 Change in net position 411,779 Net position, beginning of year 10,865,886 Net position, end of year $ 11,277,665 The accompanying notes to financial statements are an integral part of these statements. 22 City of Aventura, Florida Statement of Cash Flows Proprietary Fund For the Year Ended September 30, 2023 Cash flows from operating activities: Cash received from customers, users and others $ 1,554,343 Cash paid to suppliers (719,407) Net cash provided by (used in) operating activities 834,936 Cash flows from capital and related financing activities: Acquisition and construction of capital assets (456,310) Payments paid on subscription liability (23,000) Net cash provided by (used in) capital and related financing activities (479,310) Cash flows from investing activities: Investment income 46,946 Net cash provided by (used in) investing activities 46,946 Net increase (decrease) in cash, cash equivalents and investments 402,572 Cash, cash equivalents and investments, beginning of year 1,047,803 Cash, cash equivalents and investments, end of year $ 1,450,375 Reconciliation of operating income (loss)to net cash provided by (used in) operating activities: Operating income (loss) $ 364,833 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization expense 516,022 Changes in assets and liabilities: (Increase) decrease in due from other governments 58,231 Increase (decrease) in accounts payable (104,150) Total adjustments 470,103 Net cash provided by (used in) operating activities $ 834,936 The accompanying notes to financial statements are an integral part of these statements. 23 City of Aventura, Florida Statement of Net Position Fiduciary Fund - Police Officers' Retirement Plan September 30, 2023 Assets: Investments, at fair value: Equity securities $ 40,996,021 Government securities 6,652,273 Corporate bonds 3,379,707 Hedge funds 2,888,165 Self-directed DROP accounts 3,955,165 Money market funds 2,708,431 Real estate fund 2,339,147 Fixed income mutual funds 1,322,666 Total investments 64,241,575 Receivables: Florida Chapter 185 476,859 Accrued investment income 96,083 Employer receivable 95,339 Accounts receivable - sale of investments 68,011 Employee receivable 29,704 Total receivables 765,996 Other assets 182,306 Total assets 65,189,877 Liabilities: Accounts payable 24,584 Accounts payable - purchase of investments 18,029 Total liabilities 42,613 Net Position: Net position restricted for defined benefits 61,192,099 Net position restricted for drop benefits 3,955,165 Total net position $ 65,147,264 The accompanying notes to financial statements are an integral part of these statements. 24 City of Aventura, Florida Statement of Changes in Net Position Fiduciary Fund - Police Officers' Retirement Plan For the Year Ended September 30, 2023 Additions: Contributions: City $ 1,719,185 Employees 831,887 Florida chapter 185 476,859 Buyback 171,436 Total contributions 3,199,367 Investment income: Net appreciation in fair value of investments 5,651,746 Interest and dividend income 1,213,223 Total investment income 6,864,969 Less: investment expenses 341,142 Net investment income 6,523,827 Total additions 9,723,194 Deductions: Benefits paid directly to retirees 1,681,863 DROP distributions 1,186,082 Contribution refunds 173,066 Administrative expenses 140,780 Total deductions 3,181,791 Change in net position 6,541,403 Net Position, beginning of year 58,605,861 Net Position, end of year $ 65,147,264 The accompanying notes to financial statements are an integral part of these statements. 25 NOTES TO BASIC FINANCIAL STATEMENTS City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 1- Summary of Significant Accounting Policies The City of Aventura, Florida (the "City") was incorporated on November 7, 1995. 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 Annual Comprehensive Financial Report (the "ACFR") 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 The financial statements were prepared in accordance with Government Accounting Standards, which establishes standards for defining and reporting on the financial reporting entity. The definition of the financial reporting entity is based upon the concept that elected officials are accountable to their constituents for their actions. One of the objectives of financial reporting is to provide users of financial statements with a basis for assessing the accountability of the elected officials. The financial reporting entity consists of the City, organizations for which the City is financially accountable and other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. The City is financially accountable for a component unit if it appoints a voting majority of the organization's governing board and it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the City. Discretely Presented Component Units Discretely presented component units are separate legal entities that meet the component unit criteria described above, but do not meet the criteria for blending, given that they do not function as an internal part of the primary government. Currently, the City has no discretely presented component units. Blended Component Units Blended component units are separate legal entities that meet the component unit criteria described above and whose governing body is the same as, substantially the same as, or appointed by the City Commission and the component unit provides services (financial benefit) entirely to the City. During the year, the City has no blended component units. 26 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 1- Summary of Significant Accounting Policies (continued) 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 position and the statement of activities) report information on all activities of the City. As a general rule, 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.). 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 funds are reported as separate columns in the fund financial statements. GASB Statement No. 34 sets forth minimum criteria (percentage of assets/deferred outflows, liabilities/deferred inflows, 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. 27 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 1- Summary of Significant Accounting Policies (continued) 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, impact fees, intergovernmental revenues when eligibility requirements are met and investment income associated with the current fiscal period are all considered to be measurable and have been 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. Proprietary fund-type operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in total net position. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the 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 non-operating revenues or expenses. The City owns and operates two charter schools: Aventura City of Excellence School and Don Soffer Aventura High School. These schools are presented as major special revenue funds, as noted below, and have a fiscal year of July 1st through June 30th. The Charter Schools are required to legally adopt budgets and are also required to issue separately audited special purpose financial statements. 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. American Rescue Plan Act Fund This special revenue fund is used to account for funds awarded to the City under the American Rescue Plan Act of 2021. Aventura City of Excellence 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. Don SofferAventura High School Fund This fund is used to account for revenues and expenditures from the operations of the Don Soffer Aventura High School, a special revenue fund of the City. 28 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 1—Summary of Significant Accounting Policies (continued) The City reports the following proprietary fund: Stormwater Utility Fund This fund accounts for the operation, construction, and maintenance of the City's stormwater drainage system. Additionally, the government reports the following fiduciary fund type: City of Aventura Police Officers'Retirement Plan This fund accounts for the activities of the Police Officers' Retirement Plan that accumulates resources for pension benefits to qualifying police officers. The financial statements of the City have been prepared in accordance with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the standard setting body for governmental accounting and financial reporting. The financial statements of the City follow the guidance of GASB Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements for both the government wide and proprietary fund financial statements. Governments also have the option of following subsequent FASB pronouncements for their business type activities and enterprise funds subject to this same limitation.The City has elected not to follow subsequent FASB 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, 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. 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. In general, 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, cash equivalents and investments represent the amount owned by each City fund. Resources of all funds, with the exception of the pension fund, are also combined into investment pools for the purpose of maximizing investment yields. Earnings on pooled cash and investments are allocated monthly based on balances of the respective funds. The City's investments are reported at their estimated fair value except for the City's investment in the Florida PRIME which is recorded/valued at the amortized cost method. The pension plan's investments are reported at estimated fair value. 29 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 1- Summary of Significant Accounting Policies (continued) 2. Receivables and payables - Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either"due to/from other funds" (the current portion of interfund loans)or"advancesto/from other funds" (the noncurrent portions of interfund loans). Any residual balances outstanding between the governmental activities and business activities, or differences created between governmental funds due to timing of year end reporting, are reported in the government- wide financial statements as "internal balances." The City recognizes receivables in its various funds based on the accounting basis required for the fund. Allowances are provided for possible uncollectible amounts. 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 held for resale are reported at the lower of cost (first-in, first-out) or market. Inventories of supplies are reported at cost.These amounts are typically reported as nonspendable in governmental fund financial statements. Inventory (supplies) 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. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value. 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 years Improvements other than buildings 20 - 30 years Infrastructure 20 -40 years Furniture, machinery and equipment 3-20 years Within governmental funds, amounts incurred for the acquisition of capital assets are reported as fund expenditures. Depreciation expense is not reported within the governmental fund financial statements. The City has recorded a right of use lease asset and a software subscription asset as a result of implementing GASB 87 and GASB 96, respectively. These assets are initially measured at an amount equal to the initial measurement of the related liability plus any payments made prior to the terms of these arrangements, less incentives, and plus ancillary charges necessary to place the assets into service. The assets are amortized on a straight-line basis over the life of the respective lease and subscription arrangements. 6. Deferred outflows/inflows of resources - In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has pension related amounts, post-employment benefits other than pension (OPEB), and deferred charge on refunding that qualify for reporting in this category on the government-wide statement of net position. 30 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 1- Summary of Significant Accounting Policies (continued) Deferred charge on refunding reported results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources.This separate financial statement element,deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until then. The City has pension and OPEB related amounts that qualify for reporting in this category on the government-wide statement of net position. Unavailable revenues, on the fund financial statements, consist of intergovernmental revenues.These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. 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 0 - 100% 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 type 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 position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method, which approximates the effective interest method. Bond issue costs are expensed at issuance. Bonds payable are reported net of the applicable premiums and discounts, if applicable. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as debt issuance costs, during the current period.The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, and principal payments, are reported as debt service expenditures. 31 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 1- Summary of Significant Accounting Policies (continued) 9. Leases- Leases are defined by the general government as the right to use an underlying asset. As lessee, the City recognizes a lease liability and an intangible right-of-use lease asset at the beginning of a lease unless the lease is considered a short-term lease or transfers ownership of the underlying asset. Right-of-use lease assets are measured based on the net present value of the future lease payments at inception, using the weighted average cost of capital, which approximate the incremental borrowing rate. Re-measurement of a lease liability occurs when there is a change in the lease term and/or other changes that are likely to have a significant impact on the lease liability. The City calculates the amortization of the discount on the lease liability and report that amount as outflows of resources. Payments are allocated first to accrued interest liability and then to the lease liability. Variable lease payments based on the usage of the underlying assets are not included in the lease liability calculations but are recognized as outflows of resources in the period in which the obligation was incurred. 10. Net position - Net position in the government-wide and proprietary funds is categorized as net investment in capital assets; restricted or unrestricted. Net investment in capital assets, is the difference between the cost of capital assets, less accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction or improvement of those assets;and deferred inflows and outflows of resources related to debt; and excluding unexpended proceeds. Restricted consists of net position with constraints placed on their use by external parties (creditors, grantors, contributors, or laws or regulations of other governments) or imposed by law through constitutional provisions or enabling legislation. Unrestricted indicates that portion of net position that is available to fund future operations. Flow assumption: Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted—net position and unrestricted —net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government's policy to consider restricted — net position to have been depleted before unrestricted — net position is applied. 11. Fund balance - The City follows GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions which requires that governmental fund financial statements present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. The classifications used in the governmental fund financial statements are as follows: Nonspendable - This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) are legally or contractually required to be maintained intact. "Not in spendable form" includes items that are not expected to be converted to cash (such as inventories and prepaid amounts)and items such as long-term amount of loans and notes receivable, as well as property acquired for resale.The corpus (or principal) of a permanent fund is an example of an amount that is legally or contractually required to be maintained intact. Restricted - This classification includes amounts for which constraints have been placed on the use of the resources either (a) externally imposed by creditors (such as through a debt covenant), grantors, contributors, or laws or regulations of other governments, or (b) imposed by law through constitutional provisions or enabling legislation. 32 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 1- Summary of Significant Accounting Policies (continued) Committed - This classification includes amounts that can be used only for the specific purposes determined by a formal action of the government's highest level of decision making. The City Commission is the highest level of decision-making authority for the government that can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken(the adoption of another ordinance)to remove or revise the limitation. Assigned-This classification includes amounts that are constrained by the City's intent to be used for a specific purpose but are neither restricted nor committed. The City Commission has by resolution authorized the City Manager to assign fund balance. The City Commission may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year's budget. Unlike commitments, assignments generally can only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed previously, an additional action is essential to either remove or revise a commitment. Unassigned -This classification includes the residual fund balance for the General Fund. Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed or assigned for those specific purposes. Flow assumption: The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available unless there are legal documents/contracts that prohibit doing this, such as in grant agreements requiring dollar for dollar spending. Additionally, the City would first use committed fund balance, followed by assigned fund balance and then unassigned fund balance when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used. 12. Fund balance policies -The City's policy is to maintain an adequate General Fund balance to meet seasonal shortfalls in cash flow and reduce susceptibility to emergency and unanticipated expenditures and/or revenue shortfalls. Minimum Level of Unassigned Fund Balance of the General Fund - At the beginning of each fiscal year,the total unassigned fund balance shall not be less than 10%of the annual General Fund revenue. In any fiscal year where the City's unassigned fund balance falls below the required 10% threshold, the City shall not budget any amounts of unassigned fund balance for the purpose of balancing the budget. In addition, the City Manager will make every effort to reestablish the minimum unassigned fund balance in a 24-36 month period beginning with the year from which the reserve funds fell below the 10% threshold. Hurricane/Emergency and Disaster Recovery Reserve-The City's Commission has adopted a fund balance reserve policy to maintain a Hurricane/Emergency and Disaster Recovery's Operating Reserve at a minimum level of$ 5,000,000. 33 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 1- Summary of Significant Accounting Policies (continued) 13. 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 as an extension of formal budgetary integration. 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. Encumbrances 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 re-appropriated, at the City Manager's discretion, in the next fiscal year. 14. 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. 15. Subsequent events — Subsequent events are evaluated by management through March 21, 2024 the date the financial statements were available for issuance. 16. Implementation of Governmental Accounting Standards Board Statements — In May 2020, the GASB issued Statement No. 9 6-Subscription-Based Information Technology Arrangements. This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. The City has implemented GASB Statement No. 96, Subscription-Based Information Technology Arrangements in this annual report. 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, 2023 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. 34 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 2- Property Taxes (continued) 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. 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, 2023. 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 fair 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, hereinafter referred to as"Florida PRIME", 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. For the Florida PRIME, a 2a-7 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, 2023, the City's investment in the Florida PRIME was that of $ 46,266,992. In accordance with these requirements, the method used to determine the participants' shares sold and redeemed is the amortized cost method. 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. 35 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 3- Deposits and Investments (continued) Thus, the City's account balance in the SBA is its amortized cost.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. In accordance with GASB Statement No. 79, Certain External Investment Pools and Pool Participants, the City's investment in the Florida PRIME meets the definition of a qualifying investment pool that measures for financial reporting purposes all of its investments at amortized cost and should disclose the presence of any limitations or restrictions on withdrawals. As of September 30, 2023,there were no redemption fees or maximum transaction amounts, or any other requirements that serve to limit a participant's daily access to 100 percent of their account value. Investments On February 7, 2019, the City re-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' Retirement 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 herein. The Finance Director is designated as investment officer of the City and is responsible for investment decisions and the day-to-day administration of the cash management program. The investment policy establishes permitted investments, asset allocation, issuer limits, credit rating requirements and maturity limitsto protectthe City's assets.All investment securities are held by a Trust custodian, and are managed by financial advisors. In general, the City's policy allows to invest in the following: (1) securities and obligations of the United States and its agencies; (2) nonnegotiable interest bearing time deposits or savings accounts provided that such deposits are secured by collateral as prescribed by the Florida Security for Public Deposits Act, Chapter 280, Florida Statutes; (3) repurchase agreements collateralized by full or general faith and credit obligations of the U. S. Government or Agency securities; (4) the Florida Local Government Surplus Funds Trust Fund "SBA"; (5) intergovernmental investment pools authorized pursuant to the Florida Interlocal Cooperation Act, provided by Section 163.01, Florida Statutes, and provided that such funds contain no derivatives; (6) money market mutual funds-registered investment companies with the highest credit quality rating; (7) commercial paper of any U.S. company; (8) corporate notes; (9) asset backed securities issued by corporations organized and operating within the United States or by depository institutions licensed by the United States; (10) taxable/tax-exempt municipal bonds; and (11) Israel bonds. The City policy for pension investments is under the oversight of the Plan's Board of Trustees (the "Board"). The Board contracts with investment advisory firms and approves any new investment vehicles presented by the consultants. The investment policy statement in effect for fiscal year ended September 30, 2023 was last amended on August 2, 2023. At September 30, 2023,the City had$2,000,000 of cash in escrow held by an agent, related to certain traffic improvements and other construction projects. 36 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 3- Deposits and Investments (continued) As of September 30, 2023, the City's cash, cash equivalents and investments consisted of the following: Cash, cash equivalents and investments: State Board of Administration - SBA, Florida PRIME $ 46,266,992 Government bonds 10,916,794 Corporate bonds 5,464,709 Deposits with financial institutions and others 2,679,040 Government mortgage backed securities 3,621,209 Government agencies 4,756,869 Deposits held in escrow 2,000,000 Municipal/provincial bonds 1,429,683 Asset backed securities 1,039,749 Government issued commercial mortgage backed securities 7,694 International bonds 300,000 Total cash, cash equivalents and investments $ 78,482,739 Fiduciary fund investments: Equity securities $ 40,996,021 Government securities 6,652,273 Corporate bonds 3,379,707 Hedge funds 2,888,165 Self-directed DROP accounts 3,955,165 Money market funds 2,708,431 Real estate fund 2,339,147 Fixed income mutual funds 1,322,666 Total fiduciary investments $ 64,241,575 Interest Rate Risk 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. 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. 37 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 3- Deposits and Investments (continued) 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. Information about the exposure of the City's debt-type investments to this risk using the segmented time distribution model is as follows: Time to Maturity(in Years) Greater Fair Less Than 1-5 6-10 Than Investment Type Value 1 Year Years Years 10 Years City Investments: State Board of Administration- SBA,Florida PRIME $ 46,266,992 $ 46,266,992 $ - $ - $ Government bonds 10,916,794 3,717,193 6,816,430 383,171 Corporate bonds 5,464,709 1,912,483 3,552,226 - - Government mortgage backed securities 3,621,209 - 943,084 440,215 2,237,910 Government agencies 4,756,869 578,337 4,178,532 - - Municipal/provincial bonds 1,429,683 923,889 505,794 Asset backed securities 1,039,749 - 1,039,749 Government issued commercial mortgage backed securities 7,694 7,694 - International bonds 300,000 300,000 - - - Subtotal-City Investments 73,803,699 53,706,588 17,035,815 823,386 2,237,910 Fiduciary Fund Investments: Corporate bonds 3,379,707 610,862 1,625,811 974,860 168,174 U.S.treasuries 5,718,912 638,204 3,241,405 1,534,857 304,446 U.S.agencies 933,361 - 336,849 33,103 563,409 Fixed income funds 1,322,666 2,807 65,989 98,698 1,155,172 Subtotal-Fiduciary Fund 11,354,646 1,251,873 5,270,054 2,641,518 2,191,201 Total Investments $ 85,158,345 $ 54,958,461 $ 22,305,869 $ 3,464,904 $ 4,429,111 The dollar weighted average days to maturity (WAM) of Florida PRIME at September 30, 2023, is 35 days. Next interest rate reset dates for floating rate securities are used in the calculation of the WAM. The weighted average life (WAL) of Florida PRIME at September 30, 2023, is 75 days. The City's portfolio weighted average effective duration (years) is 1.77. 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 City's investment policy provides strict guidelines and limits investments to highly rated securities with minimum ratings of A (long term securities), A-1/13-1 (short term securities), and AAAm (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. 38 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 3- Deposits and Investments (continued) The pension fund limits its credit risk by limiting its fixed income investments to securities with the top (4) ratings issued by nationally recognized statistical rating organizations. The City's and fiduciary fund's portfolio is rated by Standard & Poor's and Moody's Investor Services, respectively, as follows: Fair Rating Value City Investments: A $ 2,103,139 A- 2,689,842 A+ 400,148 AA 350,959 AA- 559,617 AA+ 19,302,566 AAA 1,550,092 AAAm 46,266,992 Not Rated 580,344 $ 73,803,699 Fiduciary Fund Investments: AAA $ 251,973 AA+ 522,732 AA 1,176,594 AA- 13 6,648 A+ 698,454 A 1,013,870 A- 666,128 BBB+ 230,255 BBB 83,393 BB 1,764 B 1,374 Unrated 6,571,461 $ 11,354,646 Concentration Risk 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, Deposit and Investment Risk Disclosures, requires disclosure when the percentage is 5% or more in any one issuer. Investments issued or explicitly guaranteed by the U.S.government and investments in mutual funds, external investment pools, or other pooled investments are excluded from this requirement. At September 30, 2023, the City did not have any concentrations of investments required to be disclosed herein. 39 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 3- Deposits and Investments (continued) The pension fund limits investments that may be invested in any one issuer to no more than 5% of plan's net position, other than those issued by the U.S. Government or its Agencies. At September 30, 2023, there were no investments that represented 5% or more of total investments or fiduciary net position. 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. Foreign Credit Risk For an investment,foreign credit risk is the risk that fluctuations in currency exchange rates mayaffect transactions conducted in currencies other than U.S. dollars and the carrying value of foreign investments. The City is not exposed to foreign credit risk. The pension fund's investments include American Depository Receipts ("ADRs"), which are non-U.S. equity instruments issued in U.S. dollars and have no foreign credit risk. The total of the investments in foreign securities, which consist of ADR's and foreign bonds, was $ 10,365,439. The investment policy limits the foreign investments to no more than 20% of the Plan's investment balance. As of year-end, the foreign investments were approximately 17.19%of total investments. Note 4- Fair Value Measurements The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. 40 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 4- Fair Value Measurements (continued) The City has the following recurring fair value measurements as of September 30, 2023: Fair Value Measurements at Reporting Date Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Fair Identical Assets Inputs Inputs Value (Level1) (Level2) (Level3) City Investments: Government bonds $ 10,916,794 $ - $ 10,916,794 $ Corporate bonds 5,464,709 5,464,709 Government mortgage backed securities 3,621,209 3,621,209 Government agencies 4,756,869 4,756,869 Municipal/provincial bonds 1,429,683 1,429,683 Asset backed securities 1,039,749 1,039,749 Government issued commercial mortgage backed securities 7,694 7,694 International bonds 300,000 300,000 Total investments measured at fair value 27,536,707 27,536,707 Investments measured at amortized cost: Florida PRIME(exempt) 46,266,992 - Subtotal-City Investments 73,803,699 27,536,707 Fiduciary Fund Investments: Equity securities: Common stocks 37,769,560 37,769,560 Equity mutual funds 3,226,461 3,226,461 Total equity securities 40,996,021 40,996,021 - Debt securities: Corporate bonds 3,379,707 - 3,379,707 U.S.treasury securities 5,718,912 5,481,051 237,861 U.S.agency securities 933361 - 933,361 Fixed income mutual funds 1,322:666 1,322,666 - Total debt securities 11,354,646 6,803,717 4,550,929 Self-directed DROP accounts 3,955,165 - 3,955,165 Total investments measured at fair value 56,305,832 47,799,738 8,506,094 Investments measured at the Net Asset Value(NAV)(a) Hedge funds 2,888,165 Real estate fund 2,339,147 Total investments measured at the NAV 5,227,312 Money market funds(exempt) 2,708,431 Subtotal-Fiduciary Fund Investments 64,241,575 Total Investments $ 138,045,274 (a) As required by GAAP,certain investments that are measured at net asset value have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the total investment line item in the Statement of Fiduciary Net Position. 41 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 4- Fair Value Measurements (continued) City Investments The City's fixed income securities of$ 27,536,707 classified in Level 2 of the fair value hierarchy are valued using a market standard pricing technique. Pricing service providers synthesize multiple market inputs to value securities based on the securities' relationship to benchmark quoted prices; the price is derived from altered or indirectly observable prices to result in a fair value measure. Fiduciary Fund Investments The following is a description of the valuation methodologies used for asset measured at fair value. • Common stock: Valued at the closing price reported on the New York Stock Exchange. • Government securities: Valued using pricing models maximizing the use of observable inputs for similar securities. • Corporate bonds: Valued using pricing models maximizing the use of observable inputs for similar securities. This includes basing the value on yields currently available on comparable securities of issuers with similar credit ratings. When quoted prices are not available for identical or similar bonds, the bond is valued under a discounted cash flows approach that maximizes observable inputs, such as current yield of similar instruments, but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks or a broker quote, if available. • Mutual funds: Valued at the daily closing price as reported by the Plan. Mutual funds held by the Plan are open-ended mutual funds that are registered with the Securities and Exchange Commission. These funds are required to publish their daily net asset value (NAV) and to transact at that price. The mutual funds held by the Plan are deemed to be actively traded. • Hedge funds: Valued based on the net asset value per share, without further adjustment. Net asset value is based upon the fair value of the underlying investment. • Real estate fund: Valued at the net asset value of shares held by the Plan at year end.The Plan has investments in private market real estate investments for which no liquid public market exists. • Money market funds: Valued at the floating net asset value of shares held by the Plan at year end. The following table summarizes investments for which fair value is measured using the net asset value per share practical expedient, including their related unfunded commitments and redemption restrictions: Redemption Frequency(if Redemption Investments Measured at the Fair Unfunded Currently Notice NAV Value Commitments Eligible) Period Hedge Fund (1) $ 2,485 $ - Quarterly 90 Days Hedge Fund (1) 2,534 - Quarterly 90 Days Hedge Fund (2) 2,883,146 - Daily 1 Business Day Real estate fund (3) 2,339,147 - Quarterly 65 Days Total investments measured at the NAV $ 5,227,312 $ - 42 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 4- Fair Value Measurements (continued) (1) Hedge fund:The fund is a multi-strategy fund of hedge funds that aims to pursue varying strategies in order to diversify risk and reduce volatility. The fund is a diversified portfolio offering investment solutions through activist long/short equity, credit/special situations, event driven and arbitrage, global long/short equity and other opportunistic situations.The investment is valued at NAV and is redeemable on a quarterly basis. (2) Hedge fund:The fund is a diversified portfolio of common stocks of infrastructure companies and other permitted investments. The fund seeks to achieve maximum total return by investing globally in publicly traded infrastructure companies. Infrastructure companies operate in sectors that include, but are not limited to, utilities, transportation, pipelines and telecommunications, and other applicable businesses as defined by those included in the FTSE Global Core Infrastructure 50/50 Index. The investment is valued at NAV and is redeemable on a daily basis pertaining that it is a business day. (3) Real estate fund: The fund is an open-end core real estate fund with a diversified portfolio of income producing properties located throughout the United States. The investment is valued at NAV and is redeemable on a quarterly basis. Note 5- Receivables Receivables as of September 30, 2023 for the City's individual major funds and non-major funds in the aggregate consist of the following: Aventura City of Don Soffer Excellence Aventura Nonmajor General School High School Stormwater Governmental Fund Fund* Fund* Fund Funds Total Receivables: Intergovernmental $ 899,402 $ 781,614 $ 227,635 $ 300,522 $ 548,625 $ 2,757,798 Franchise and utility 1,666,472 - - - - 1,666,472 Police services 553,846 - 553,846 Vendors and miscellaneous 3,475 - 29,734 - - 33,209 Net total receivables $ 3,123,195 $ 781,614 $ 257,369 $ 300,522 $ 548,625 $ 5,011,325 * As of June 30,2023. 43 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 6- Interfund Balances and Transfers Interfund receivables and payables at September 30, 2023 were as follows: Due From: Aventura City of Excellence Internal Due To: School Fund Balance Total Don Soffer Aventura High $ - 1,394,197 1,394,197 School Fund General Fund 2,262,978 - 2,262,978 Total $ 2,262,978 1,394,197 3,657,175 *An internal balance of$1,394,197 remains because the Don Soffer Aventura High School Fund and the Aventura City of Excellence School Fund are being reported at June 30,2023. Interfund transfers during the year ended September 30, 2023 were as follows: Transfers Transfers In Out General Fund $ 535,449 $ 2,391,100 Aventura City of Excellence School Fund 150,000 444,000 Nonmajor Governmental Funds 2,535,100 535,449 $ 3,220,549 $ 3,370,549 *An internal balance of$150,000 remains because the Don Soffer Aventura High School Fund and the Aventura City of Excellence School Fund are being reported for the year ended June 30,2023. 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 of unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. The transfers to the Aventura City of Excellence School Fund from the General Fund are being used to support the operations of the school, from revenues generated through the intersection safety camera program. The remaining transfers represent transfers to meet debt service requirements of the Debt Service Funds. 44 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 7- Capital Assets Capital assets activity for the year ended September 30, 2023 was as follows: Balance Additions Retirements Balance September 30, and and September 30, 2022 Transfers Transfers 2023 Governmental activities: Capital assets,not being depreciated/amortized: Land $ 25,644,586 $ - $ - $ 25,644,586 Construction in progress 283,572 7,235,392 (2,047,818) 5,471,146 Total capital assets,not being depreciated/amortized 25,928,158 7,235,392 (2,047,818) 31,115,732 Capital assets,being depreciated/amortized: Buildings 66,593,950 63,654 66,657,604 Improvements other than buildings 17,661,632 130,980 17,792,612 Infrastructure 47,422,644 1,468,677 48,891,321 Furniture, machinery and equipment 24,510,880 2,380,945 (562,693) 26,329,132 Right-of-use lease assets - 344,163 344,163 Total capital assets,being depreciated/amortized 156,189,106 4,388,419 (562,693) 160,014,832 Less accumulated depreciation/amortization for: Buildings 26,199,248 2,078,873 28,278,121 Improvements other than buildings 8,690,866 698,116 9,388,982 Infrastructure 28,991,576 1,525,062 30,516,638 Furniture, machinery and equipment 19,891,352 1,529,767 (558,636) 20,862,483 Right-of-use lease assets - 21,527 21,527 Total accumulated depreciation/amortization 83,773,042 5,853,345 (558,636) 89,067,751 Total capital assets,being depreciated/amortized, net 72,416,064 (1,464,926) (4,057) 70,947,081 Governmental activities capital assets,net $ 98,344,222 $ 5,770,466 $ (2,051,875) $ 102,062,813 Business-type activities: Capital assets,not being depreciated/amortized: Construction in progress $ 107,858 $ 172,025 $ $ 279,883 Total capital assets,not being depreciated/amortized 107,858 172,025 279,883 Capital assets,being depreciated/amortized: Infrastructure 15,585,552 270,285 15,855,837 Right-of-use subscription asset - 78,874 78,874 Total capital assets,being depreciated/amortized 15,585,552 349,159 15,934,711 Less accumulated depreciation/amortization for: Infrastructure 6,021,772 513,287 6,535,059 Right-of-use subscription asset - 2,735 2,735 Total accumulated depreciation/amortization 6,021,772 516,022 6,537,794 Total capital assets,being depreciated/amortized, net 9,563,780 (166,863) 9,396,917 Business-type activities capital assets, net $ 9,671,638 $ 5,162 $ $ 9,676,800 45 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 7- Capital Assets (continued) Depreciation/amortization expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $ 808,431 Public safety 926,582 Community services 3,861,348 Public works 256,984 $ 5,853,345 Business-type activities: Stormwater utility $ 516,022 Note 8- Long-Term Liabilities Changes in long-term liabilities during the year ended September 30, 2023 were as follows: Balance Balance September 30, September 30, Due Within 2022 Additions Reductions 2023 One Year Governmental activities: Revenue bonds $ 16,880,000 $ - $ (1,900,000) $ 14,980,000 $ 1,965,000 Leases - 344,163 344,163 71,628 Compensated absences payable 4,097,472 2,154,766 (2,048,501) 4,203,737 1,471,308 Net pension liability 2,867,014 17,711,852 20,578,866 - Other post-employment benefits 2,161,160 - (931,256) 1,229,904 - Total governmental activities $ 26,005,646 $ 20,210,781 $ (4,879,757) $ 41,336,670 $ 3,507,936 Business-type activities: Subscription liability $ $ 64,874 $ (23,000) $ 41,874 $ 20,278 Total long-term debt and liabilities $ 26,005,646 $ 20,275,655 $ (4,902,757) $ 41,378,544 $ 3,528,214 Compensated absences, net pension liability and other post-employment benefits attributable to governmental activities are generally liquidated by the General Fund. Revenue bonds as of September 30, 2023 were comprised of the following: Series 2010 Refunding Revenue Bonds, principal is due annually over 18 years in various amounts through April 2029. The bonds bear interest at 3.42%, subject to taxability event, and are payable semi-annually on October 1 and April 1 of each year. The bonds are collateralized by available Non-Ad Valorem revenues. $ 4,180,000 Series 2011 Refunding Revenue Bonds, principal is due annually over 18 years in various amounts through April 2029. The bonds bear interest at 3.64%, subject to taxability event, and are payable semi-annually on October 1 and April 1 of each year. The bonds are collateralized by available Non-Ad Valorem revenues. 2,260,000 46 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 8- Long-Term Liabilities (continued) Series 2012 Refunding Revenue Bonds, principal is due annually over 15 years in various amounts through August 2027. The bonds bear interest at 2.65%, subject to taxability event, and are payable semi-annually on February 1 and August 1 of each year.The bonds are collateralized by available Non-Ad Valorem revenues. 2,850,000 Series 2018 Revenue Bonds, principal is due annually over 20 years in various amounts through August 2038. The bonds bear interest at 3.68%, subject to taxability event, and are payable semi-annually on February 1 and August 1 of each year. The bonds are collateralized by available Non-Ad Valorem revenues. 5,690,000 $ 14,980,000 Series 2010 and 2011 Refunding 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. At September 30, 2014, this bond series was fully defeased. In fiscal year 2010, the City issued Series 2010 Refunding Revenue Bonds to partially advance refund $ 10,580,000 of the then outstanding Series 1999 Revenue Bonds. In fiscal year 2011, the City issued Series 2011 Refunding Revenue Bonds to advance refund the remaining $ 5,700,000 of the then outstanding Series 1999 Revenue Bonds. The City refunded the Series 1999 Revenue Bonds to reduce its aggregate debt service payments by approximately $ 3,166,000. The indentures contain financial provisions as follows: (1) a default rate equal to the maximum rate permitted by law, and a 3%fee on delinquent payments if not made within fifteen days after the due date; 2) events of default such as failure to make payment, violation of any covenant contained in the agreements, bankruptcy, or insolvency; and 3) anti-dilution requirements where the aggregate adjusted net revenues will equal or exceed 300% of the maximum annual debt service, and the maximum annual debt service will not exceed 20% of adjusted net revenues, as defined in the debt agreements. Series 2012 Refunding 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. At September 30, 2014, this bond series was fully defeased. In fiscal year 2012, the City issued $ 9,885,000 in Series 2012 Refunding Revenue Bonds to advance refund$ 10,165,000(including a City contribution ofapproximately$598,000)ofthethenoutstanding Series 2002 Revenue Bonds. The City advance refunded the Series 2002 Revenue Bonds to reduce its total debt service payments by approximately$ 3,810,000. 47 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 8- Long-Term Liabilities (continued) The indenture contains financial provisions as follows: (1) a default rate equal to Prime plus 3% and a 3% fee on delinquent payments if not made within fifteen days after the due date; 2) events of default such as failure to make payment, violation of any covenant contained in the agreements, bankruptcy, or insolvency; and 3) anti-dilution requirements where the aggregate adjusted net revenues will equal or exceed 300% of the maximum annual debt service, and the maximum annual debt service will not exceed 20% of adjusted net revenues, as defined in the debt agreements. Series 2018 Revenue Bonds The City previously issued $ 7,100,000 in Series 2018 Revenue Bonds for the construction and equipping the Don Soffer High School within the City. The indentures contain financial provisions as follows: (1) a default rate equal to the current interest rate on the bonds plus 2%, after 5 days of any due date; and 2) events of default such as failure to make payment, violation of any covenant contained in the agreements, bankruptcy, or insolvency. The aggregate annual debt service requirements to maturity for the revenue bonds are approximately as follows: Year Ending September 30, Principal Interest Total 2024 $ 1,965,000 $ 507,456 $ 2,472,456 2025 2,025,000 443,964 2,468,964 2026 2,080,000 378,477 2,458,477 2027 2,145,000 311,095 2,456,095 2028 1,465,000 241,718 1,706,718 2029 - 2033 3,050,000 650,335 3,700,335 2034- 2038 2,250,000 233,955 2,483,955 $ 14,980,000 $ 2,767,000 $ 17,747,000 The City does not currently have unused lines of credit or assets placed as collateral for debt. Lease Payable For the year ended September 30, 2023, the financial statements include the effects of GASB Statement No. 87, Leases. The primary objective of this statement is to enhance the relevance and consistency of information about governments' leasing activities.This statement establishes a single model for lease accounting based on the principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset. For additional information, refer to the disclosures below. The City has entered into 7 leases related to Governmental Activities for the use of various vehicles. The leases have annual payments that range from 5-6 years. An initial lease liability was recorded in the amount of$344,163. As of September 30, 2023, the value of the lease liability is $344,163 with the first payment due in October 2023. The City is required to make fixed annual payments ranging from $9,311 to $68,627 through the terms of the leases.The leases have interest rates ranging from 6.41% to 8.21%. The value of the right to use asset as of September 30, 2023 is $322,636 with accumulated amortization of$21,527 and is included with the Right-to-use lease assets in the Note 7. 48 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 8- Long-Term Liabilities (continued) Total future minimum lease payments under lease agreements are as follows: Year Ending September 30, Principal Interest Total 2024 $ 71,628 $ 4,976 $ 76,604 2025 59,793 18,646 78,439 2026 63,741 14,597 78,338 2027 67,952 10,270 78,222 2028 72,443 5,647 78,090 2029 8,606 706 9,312 $ 344,163 $ 54,842 $ 399,005 Subscription Liability For the year ended September 30, 2023, the financial statements include the adoption of GASB Statement No. 96, Subscription-Based Information Technology Arrangements.The primary objective of this statement is to enhance the relevance and consistency of information about governments' subscription activities. This statement establishes a single model for subscription accounting based on the principle that subscriptions are financings of the right to use an underlying asset. Under this Statement, an organization is required to recognize a subscription liability and an intangible right-to- use subscription asset. For additional information, refer to the disclosures below. The City entered into a 36 month subscription for the use of a public works management software system. An initial subscription liability was recorded in the amount of$64,874. As of September 30, 2023, the value of the subscription liability is $41,874. The City is required to make annual fixed payments of $23,000. The subscription has an interest rate of 6.5%. The value of the right to use asset as of September 30, 2023 is $78,874 with accumulated amortization of$2,735 is included with the right-of-use subscription asset in the Note 7. Year Ending September 30, Principal Interest Total 2024 $ 20,278 $ 2,722 $ 23,000 2025 21,596 1,404 23,000 $ 41,874 $ 4,126 $ 46,000 Note 9- 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, if any, will not have a material adverse effect on the financial statements of the City. Management also believes that any possible adverse effect of litigation against the City will be covered by insurance. 49 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 9- Commitments and Contingencies (continued) 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 term 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 four(4) months advance written notice to resign voluntarily. Charter School Agreements The City has two contracts with the School Board of Miami-Dade County, Florida, that allows for Aventura City of Excellence School to provide the residents of the City of Aventura an elementary and middle school education choice; and for the Don Soffer Aventura High School to provide the residents of the City of Aventura a high school education choice. The contracts for the Aventura City of Excellence School and the Don Soffer Aventura High School expire on June 30, 2033 and June 30, 2034, respectively. Both contracts provide for a five-year renewal option by mutual agreement of both parties. The City previously entered into an agreement with Charter School USA, Inc. ("CSUSA") to provide administrative and educational services for Aventura City of Excellence School. The agreement expired on June 30, 2023. As of February 111, 2024, there is a negotiation pending for contract extension. The monthly fee will remain at $ 25,500 until a contract is finalized. The City also entered into a separate management agreement with CSUSA to provide those services necessary to organize, manage, staff, operate and maintain the Don Soffer Aventura High School. The term of the agreement is consistent with the existing Charter, expiring June 30, 2034, with automatic renewals through a term consistent with the then current Charter provided performance standards are satisfied. Other Agreements The City has a nonexclusive agreement through November2024with an engineering consulting firm (the "Consultant") to provide building inspections and plan review services. Pursuant to the agreement, the Consultant receives 70%of the gross building permit fee revenues for the first $ 50,000 in gross fees in a month and 65% of the amount in excess of$ 50,000 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 Economic developments surrounding the overall market-liquidity, credit availability and market collateral levels may result in declines in the value of the investment securities held by the City of Aventura 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. 50 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 9- Commitments and Contingencies (continued) Construction Agreements The City has entered into various agreements in reference to the construction and maintenance of the City's streets and other infrastructure projects. At year-end, outstanding construction commitments amounted to approximately$ 1,031,000. Encumbrances As discussed in Note 1(12.) Summary of Significant Accounting Policies, encumbrance accounting is utilized to the extent necessary to assure effective budgetary control and accountability and to facilitate effective cash planning and control. At year end, the amount of encumbrances expected to be honored upon performance by the vendor in the next year are as follows: General Fund $ 516,484 American Rescue Plan 4,412,929 $ 4,929,413 Note 10- 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 11- Post-Employment Benefits other than Pensions (OPEB) Plan Description The City's defined benefit OPEB plan provides benefits to all eligible employees and is a single employer benefit plan administered by the City. Chapter 627 of the Florida Statutes requires that the City make health coverage available to retirees at the employer's group rate. The City provides no funding for any portion of the premiums after retirement, except as discussed below. However, the City recognizes that there is an "implicit subsidy" arising because of the blended rate premium since retiree health care costs, on average, are higher than active employee healthcare costs. The plan is not accounted for as a trust fund and an irrevocable trust has not been established to fund this plan. The plan does not issue a separate financial report. It is the City's current policy to fund the plan on a "pay- as-you-go" basis. There are no assets accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. 51 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 11- Post-Employment Benefits other than Pensions (OPEB) (continued) Benefits Provided Employees who retire from the City and their dependents are eligible to continue to participate in the City's health insurance, life insurance, and long-term care benefits currently offered through the City at the"blended"employee group rate,which the City determines on an annual basis.The retiree must continue to meet all participation requirements and payall applicable premiums bythespecified due date. Life insurance and long-term care benefits are portable and the retiree must pay premiums to the carrier directly. Generally, the City provides no funding for any portion of the premiums after retirement. Pursuant to City Resolution 2006-64, department directors who retire at age 55 or later with at least 10 years of full-time service are not required to pay a premium for medical or dental coverage for themselves prior to age 65. The retiree is responsible for any spouse or dependent coverage. For these individuals, there is an explicit subsidy where the City provides for the retiree's coverage. As of September 30, 2022, the latest actuarial valuation, health care and dental plan participants consisted of: Active Plan participants 186 Retiree Plan participants 1 187 Total OPEB Liability The City's total OPEB liability of$ 1,229,904 was measured as of September 30, 2022 (measurement date) and was determined by an actuarial valuation as of September 30, 2022. Methods and Assumptions Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Projections of benefits for financial reporting purposes are based on numerous assumptions concerning the cost of benefits to be provided in the future, long-term investment returns, and the future demographic experience of the current participants. As of the September 30, 2022 actuarial valuation, the following assumptions were made: Discount rate: 4.77% per annum; this rate is based on the September 30, 2022 S&P Municipal Bond 20-year High Grade Rate Index as published by S&P Dow Jones Indices. Salary increases: 3.00% per year. Inflation: 2.50% per year. Marital status: Current spouse coverage is applied. 52 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 11- Post-Employment Benefits other than Pensions (OPEB) (continued) Retirement rates: General - 100% are assumed to retire by age 62 with 6 years of service, or with 30 years of service, regardless of age. Police - 100% are assumed to retire by age 57 and 10 years of service, age 60 regardless of service, or with 23 years of service, regardless of age. Health care participation: - 5% participation assumed. 100% participation assumed for Directors eligible for explicit coverage to age 65, and 5%thereafter. Healthcare care inflation: Initial rate of 7.25% in fiscal year 2023, then 7.00% in fiscal year 2024, grading down to the ultimate trend rate of 4.00% in fiscal year 2075. Medical Aging morbidity factors: Developed based on a study performed by Dale Yamamoto for the Society of Actuaries. Used to measure the annual increases in per capital claim costs for each age and relative cost by gender. Health claims: Developed using active fully insured rates. Dental claims: Developed using the active fully insured rates. Projected employee contributions are assumed to cover the entire cost of claims. Funding method: Entry Age Cost Method (Level Percentage of Pay). Mortality rates: Mortality rates are consistent with mortality rates mandated by Chapter 2015-157, Florida Statutes for pension plans. This law mandates the use of the assumption used in either of the two most recent valuations of the Florida Retirement System (FRS). All mortality rates were based on the Pub-2010 mortality tables with fully generational improvement using Scale MP-2018. The rates are those outlined in Milliman's July 1, 2023 FRS valuation report. Changes: Since the prior measurement date, the discount rate was increased from 2.43% per annum to 4.77% per annum. Also, the mortality rates, the annual per capita claim costs, and the health care inflation rates were updated. Changes in the Total OPEB Liability Total OPEB Liability Balance as of September 30, 2021, measurement date $ 2,161,160 Change due to: Service cost 95,563 Expected interest growth 54,289 Demographic experience (776,041) Benefit payments and refunds (45,447) Assumption changes (259,620) Net changes (931,256) Balance as of September 30, 2022, measurement date $ 1,229,904 53 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 11- Post-Employment Benefits other than Pensions (OPEB) (continued) Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is 1.00% lower or 1.00% higher than the current discount rate: 1% Decrease Discount Rate 1% Increase (3.77%) (4.77%) (5.77%) Net OPEB liability $ 1,359,409 $ 1,229,904 $ 1,116,278 Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates: Healthcare Trend Rates Cost Trend Trend Rates Minus 1.00% Rates Plus 1.00% 3.00% - 6.50% 4.00%- 7.50% 5.00% - 8.50% Net OPEB liability $ 1,099,696 $ 1,229,904 $ 1,383,125 OPEB Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended September 30, 2023, the City recognized OPEB expense of $ 169,085. At September 30, 2023, the City reported deferred outflows of resources and deferred inflows as follows: Deferred Deferred Outflows Inflows of Resources of Resources Differences between expected and actual experience $ 403,849 $ 1,087,715 Changes of assumptions 600,455 351,662 Employer contributions subsequent to the measurement date 26,699 - Total $ 1,031,003 $ 1,439,377 The deferred outflows of resources relating from the employer contributions subsequent to the measurement date and prior to the employer's reporting period, in the amount of $ 26,699, will be recognized as a reduction of the net OPEB liability in the subsequent fiscal year ending September 30, 2024. 54 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 11- Post-Employment Benefits other than Pensions (OPEB) (continued) Amounts reported as deferred outflows and deferred inflows of resources related to OPEB will be recognized as expense as follows: Yearended September 30, Amount 2024 $ 17,733 2025 17,733 2026 17,733 2027 (6,809) 2028 (126,128) Thereafter (355,335) $ (435,073) Note 12- 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 18%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$ 971,000 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 13- Defined Benefit Pension Plan General Information about the Pension Plan Plan Description - The Plan is open solely to active police officers of the City of Aventura. A police officer is any person employed full time in the Police Department of the City, who is certified as a police officer as a condition of employment in accordance with the provisions of Florida Statutes and whose duty is to protect life and property and exercise lawful arrest powers of the State of Florida. The definition includes all supervisory and command personnel whose duties include, in whole or in part,the supervision,training,guidance, and management responsibilities of full-time police officers. All full-time police officers of the City of Aventura, except the Chief of Police, must participate in the pension plan. 55 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 13- Defined Benefit Pension Plan (continued) Board of Trustees:Two City Commission appointees who are City residents,two elected Members of the System, and a fifth member elected by the other four and appointed by Commission (as a ministerial duty). Plan Membership as of September 30, 2023 Inactive Plan members or beneficiaries 62 currently receiving benefits Active Plan members 66 Tota 1 128 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 audited 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 the earlier of age 55 with 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%of final monthly compensation multiplied by the number of years of service, to a maximum of 80%.Years credited beyond 40 will be taken into account at 2% of final compensation per year. An early retirement benefit may be received upon attainment of age 45 with 10 years of credited service. The benefit may be received either on a deferred basis or an immediate basis. On an immediate basis, the benefit amount will be the normal retirement benefit reduced by 3% 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% 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 of service with the City, and who have completed at least 10 years of service, will receive a monthly benefit amount equal to 3%of final monthly compensation for each year of credited service, but not less than 30%. Funding - Effective October 1, 2015, members were required to contribute 10.775% of the annual covered salary. During 2022, the City and State are required to contribute 28.431% of covered payroll. Consistent with the requirements of Sections 112.66 and 185.07 of the Florida Statutes, the City is required to contribute an amount necessary to maintain the Plan on an actuarially sound basis. Contribution requirements of the Plan members and the City are established and may be changed by an amendment of the City ordinance. The costs of administrating the Plan are paid out of contributions to the Plan. 56 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 13- Defined Benefit Pension Plan (continued) Deferred Retirement Option Plan Effective October 1, 2019, a deferred retirement option plan ("DROP") was created. A member is eligible to enter the DROP on the earlier of the first day that he/she is eligible for service retirement as defined by Ordinance 2019-12, section 36-26(b)(ii) or delayed retirement as defined in section 36- 26(b)(iii) but with at least 11 years of credited service and attainment of age 57. Upon entering the DROP, a member will no longer accrue credited service or additional pension benefits and will no longer make employee contributions to the Retirement Plan. Instead, the amount of the monthly pension benefit for the benefit option selected by the member will be credited to the member's DROP account. The maximum period that a member may participate in the DROP is five years. After the maximum period of DROP participation, the member must terminate from employment as a City police officer. DROP participation must begin by the earlier of the date on which a member reaches 25 years of service or the date on which a member reaches age 57 with 11 years of service. A member may elect to enter DROP after the foregoing dates, but his/her maximum participation in the DROP will be reduced by the period of time in which the member delayed entry in the DROP after reaching either of the foregoing maximum DROP entry deadlines. The member's DROP account will be self-directed by the member to mutual funds selected by the Retirement Plan's Board of Trustees from among those offered by a vendor selected by the Board of Trustees.The available mutual funds and the vendor may be changed from time to time by the Board of Trustees. Members will be solely responsible for the gains and losses of their individual self- directed DROP accounts. Members who elect to participate in the DROP shall be required to separate from City service at the conclusion of the DROP period. A member's DROP shall be distributed to the member in a lump sum, rollover, or a combination of both, as soon as administratively practicable and not more than 90 days following the conclusion of the DROP period or approval of the distribution by the Retirement Plan Board of Trustees, whichever occurs last. Neither the City,the Retirement Plan, nor its Board of Trustees shall have any liabilityor responsibility to guarantee the principal and/or rate of return for a member's DROP assets. The DROP accounts, although self-directed separate accounts, will remain part of the pension trust, and distributions from a member's account shall not be permitted until termination of employment.The balance of the amounts held by the Plan pursuant to the DROP was$ 3,955,165 as of September 30, 2023. Net Pension Liability The City's net pension liabilitywas measured as of September 30,2022.The total pension liability used to calculate the net pension liability was determined as of that date. Actuarial Assumptions - The total pension liability was determined by an actuarial valuation as of October 1, 2022 using the following actuarial assumptions: Inflation 2.30% Salary Increases 5.00% Discount rate 7.25% Investment rate of return 7.25% Mortality Rate: PubS.H-2010 (Above Median) for both male and female employees, set forward and back for one year, as applicable. 57 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 13- Defined Benefit Pension Plan (continued) The long-term expected rate of return on pension plan investments was determined using a building- block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expenses and inflation) are developed for each major asset class.These ranges are combined to produce the long term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation are summarized in the following table: Target Long Term Expected Asset Class Allocation Real Rate of Return Domestic Equity 55.00% 5.61% International Equity 10.00% 4.46% Fixed Income 20.00% 1.23% Private Real Estate 5.00% 4.28% Hedge Funds 5.00% 1.50% MPL/Energy Infrastructure 5.00% 3.55% 100.00 Discount Rate -The projection of cash flows used to determine the Discount Rate assumed that Plan Member contributions will be made at the current contribution rate and that Sponsor contributions will be made at rates equal to the difference between actuarially determined contribution rates and the Member rate. Based on those assumptions, the Pension Plan's Fiduciary Net Position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the Long-Term Expected Rate of Return on Pension Plan investments was applied to all periods of projected benefit payments to determine the Total Pension Liability. Changes in Net Pension Liability Increase (Decrease) Total Pension Pan Fiduciary Net Pension Liability Net Pension Liability (a) (b) (a)-(b) Reporting period ending, September 30, 2022 $ 71,678,131 $ 68,811,117 $ 2,867,014 Changes for the year: Service cost 1,968,670 - 1,968,670 Interest 5,273,819 - 5,273,819 Contributions - employer - 1,849,234 (1,849,234) Contributions - state - 471,692 (471,692) Contributions - employee - 879,603 (879,603) Contributions - buy back - - - Difference between actual and expected experience 2,073,045 - 2,073,045 Net investment income - (11,446,124) 11,446,124 Benefit payments, including refunds of employee contributor (1,808,938) (1,808,938) - Administrative expenses - (150,723) 150,723 Net change 7,506,596 (10,205,256) 17,711,852 September 30, 2023 $ 79,184,727 $ 58,605,861 $ 20,578,866 58 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 13- Defined Benefit Pension Plan (continued) Sensitivity of the Net Pension Liability (Asset) to Changes in the Discount Rate - The following presents the net pension liability (asset) of the City, calculated using the discount rate of 7.25%, as well as what the City's net pension liability (asset)would be if it were calculated using a discount rate that is 1.00% lower or 1.00% higher than the current discount rate: 1% Decrease Discount Rate 1% Increase (6.25%) (7.25%) (8.25%) Net pension liability (asset) $ 30,867,188 $ 20,578,866 $ 12,170,147 Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources related to Pensions For the year ended September 30, 2023 the Sponsor will recognize a pension expense of$ 5,372.502. On September 30, 2023 the Sponsor reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences between expected and actual experience $ 2,930,617 $ - Changes of assumptions - 638,410 Net difference between projected and actual earnings on pension plan investments 9,164,299 - Pension contributions subsequent to the measurement date 2,196,044 - Totals $ 14,290,960 $ 638,410 The deferred outflows of resources resulting from the employer contributions to the Plan subsequent to the measurement date and prior to the employer's reporting period, in the amount of$ 2,196,044, will be recognized as a reduction of the net pension liability in the subsequent fiscal year ending September 30, 2024. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Yearended September 30, Amount 2024 $ 2,872,892 2025 2,351,858 2026 2,521,165 2027 3,710,591 $ 11,456,506 59 City of Aventura, Florida Notes to Basic Financial Statements September 30, 2023 Note 14- Deficit in Fund Balance At June 30, 2023, the Aventura City of Excellence School ("ACES") Fund had a deficit fund balance of $3,002,177. The City expects to fund the ACES deficit with its allocation from the Elementary and Secondary School Emergency Relief (ESSER) grant. The deficit is primarily the result of the ESSER grant reimbursement process which has been inefficient, lengthy, and cumbersome. As the City navigates through the ESSER grant reimbursement process, the City is fully committed to providing cash advances to ACES to ensure there is no lapse in the resources available that ACES students need. 60 REQUIRED SUPPLEMENTARY INFORMATION City of Aventura, Florida Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual - General Fund For the Year Ended September 30, 2023 Variance with Final Budget Budgeted Amounts Actual Positive Origina Fina Amounts (Negative) Revenues: Ad valorem taxes $ 18,841,832 $ 18,841,832 $ 18,820,560 $ (21,272) Utility service and other locally levied taxes 9,355,000 9,355,000 11,135,742 1,780,742 Licenses and permits; including franchise fees 7,544,500 4,182,000 5,754,737 1,572,737 Intergovernmental revenues 3,734,676 4,210,483 5,944,654 1,734,171 Charges for services 2,886,643 4,784,143 5,372,540 588,397 Fines and forfeitures 1,982,500 1,982,500 4,212,371 2,229,871 Investment income(loss) 125,000 125,000 2,279,969 2,154,969 Miscellaneous 60,000 60,000 99,024 39,024 Total revenues 44,530,151 43,540,958 53,619,597 10,078,639 Expenditures: General government: City commission 220,213 257,713 213,695 44,018 City manager 1,428,008 1,444,708 1,390,745 53,963 Legal 380,000 415,000 385,484 29,516 City clerk 402,348 402,348 382,683 19,665 Finance 1,137,237 1,146,737 1,122,924 23,813 Human resources 284,919 284,919 219,220 65,699 Information technology 1,230,980 1,232,330 1,211,434 20,896 Nondepartmental 1,868,625 2,115,100 2,019,154 95,946 Total general government 6,952,330 7,298,855 6,945,339 353,516 Public safety: Police 22,454,143 23,004,143 22,800,494 203,649 Community development 3,705,688 579,885 525,371 54,514 Total public safety 26,159,831 23,584,028 23,325,865 258,163 Community services: Community services 3,337,799 4,306,299 4,139,546 166,753 Arts and cultural center 901,444 1,301,444 1,204,464 96,980 Total community services 4,239,243 5,607,743 5,344,010 263,733 Public works: Public works 3,091,007 3,496,007 3,251,128 244,879 Total public works 3,091,007 3,496,007 3,251,128 244,879 Capital outlay 15,999,129 16,717,437 2,351,529 14,365,908 Total expenditures 56,441,540 56,704,070 41,217,871 15,486,199 Excess(deficiency)of revenues over expenditures (11,911,389) (13,163,112) 12,401,726 25,564,838 Other financing sources(uses): Transfers in 530,000 535,449 5,449 Transfers out (2,349,522) (2,410,999) (2,391,100) 19,899 Debt proceeds - 348,484 344,163 (4,321) Appropriated fund balance 14,260,911 14,695,627 - (14,695,627) Total other financing sources(uses) 11,911,389 13,163,112 (1,511,488) (14,674,600) Net change in fund balance $ - $ - $ 10,890,238 $ 10,890,238 See notes to required supplementary information. 61 City of Aventura, Florida Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual -American Rescue Plan Act Fund - Special Revenue Fund For the Year Ended September 30, 2023 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental revenues $ $ 12,656,742 $ 6,496,416 $ (6,160,326) Investment income - 492,491 492,491 Total revenues - 12,656,742 6,988,907 (5,667,835) Expenditures: General government 124,600 651,767 651,245 522 Public safety 24,000 - - - Community services 90,108 - - - Capital outlay 14,836,592 12,004,975 5,845,171 6,159,804 Total expenditures 15,075,300 12,656,742 6,496,416 6,160,326 Excess(deficiency)of revenues over expenditures (15,075,300) - 492,491 492,491 Other financing sources(uses): Appropriated fund balance 15,075,300 - - Total other financing sources(uses) 15,075,300 - - Net change in fund balance $ - $ $ 492,491 $ 492,491 See notes to required supplementary information. 62 City of Aventura, Florida Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual -Aventura City of Excellence School Fund - Special Revenue Fund For the Year Ended June 30, 2023 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental revenues $ 10,224,374 $ 10,587,149 $ 10,416,766 $ (170,383) Charges for services 525,000 525,000 500,687 (24,313) Investment income 2,000 2,000 7,229 5,229 Miscellaneous 410,000 3,287,715 3,039,309 (248,406) Total revenues 11,161,374 14,401,864 13,963,991 (437,873) Expenditures: Community services 10,761,529 14,917,229 14,745,184 172,045 Capital outlay 450,500 591,000 342,762 248,238 Total expenditures 11,212,029 15,508,229 15,087,946 420,283 Excess (deficiency) of revenues over expenditures (50,655) (1,106,365) (1,123,955) (17,590) Other financing sources (uses): Transfers in 150,000 1,205,710 150,000 (1,055,710) Transfers out (444,000) (444,000) (444,000) - Appropriated fund balance 344,655 344,655 - (344,655) Total other financing sources (uses) 50,655 1,106,365 (294,000) (1,400,365) Net change in fund balance $ - $ - $ (1,417,955) $ (1,417,955) See notes to required supplementary information. 63 City of Aventura, Florida Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Don Soffer Aventura High School Fund - Special Revenue Fund For the Year Ended June 30, 2023 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental revenues $ 8,431,638 $ 8,431,638 $ 8,210,195 $ (221,443) Charges for services - - 238,780 238,780 Investment income - - 91,988 91,988 Miscellaneous income - - 1,656,728 1,656,728 Total revenues 8,431,638 8,431,638 10,197,691 1,766,053 Expenditures: Community services 7,806,331 7,806,331 8,380,593 (574,262) Capital outlay 306,845 306,845 375,265 (68,420) Total expenditures 8,113,176 8,113,176 81755,858 (642,682) Net change in fund balance $ 318,462 $ 318,462 $ 1,441,833 $ 1,123,371 See notes to required supplementary information. 64 City of Aventura, Florida Notes to Budgetary Comparison Schedules September 30, 2023 Note 1- Budgets and Budgetary Accounting An annual appropriated budget is adopted for all government funds with the exception of the Federal Forfeiture Fund and the Law Enforcement Trust. All of the funds mentioned in this paragraph are 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 supplemental budgetary appropriations throughout the year including approximately $ 300,000 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. Encumbrances lapse at fiscal year-end. Encumbrances are re-appropriated in the following year's budget. A separate budget document for the Aventura City of Excellence School Fund and the Don Soffer Aventura High School Fund is adopted by the City on May of each year, based on an annual operational fiscal year ending as of June 30th. 65 City of Aventura, Florida Required Supplementary Information Schedule of Changes in Net Pension Liability and Related Ratios(Unaudited) Police Officer's Retirement Plan Last Ten Fiscal Years Reporting period ending: 9/30/2024 9/30/2023 9/30/2022 9/30/2021 9/30/2020 9/30/2019 9/30/2018 9/30/2017 9/30/2016 9/30/2015 Measurement date: 9/30/2023 9/30/2022 9/30/2021 9/30/2020 9/30/2019 9/30/2018 9/30/2017 9/30/2016 9/30/2015 9/30/2014 Total pension liability: Service cost $ 2,111,399 $ 1,968,670 $ 2,138,359 $ 1,993,808 $ 2,107,436 $ 1,960,406 $ 1,946,501 $ 1,810,699 $ 1,896,180 $ 1,732,252 Interest 5,783,733 5,273,819 4,788,701 4,421,716 4,033,828 3,627,275 3,279,516 2,931,936 2,727,885 2,238,129 Changes of benefit terms - - - - - 1,173,788 - - 2,797,541 - Differences between expected and actual experience - 2,073,045 1,388,353 1,097,921 - (794,007) - (1,226,574) (1,326,392) - Changes of assumptions - - - (1,596,026) - 1,856,302 - 1,534,188 - - Contributions-buy back 171,436 - 10,811 10,039 121,590 - - - - - Benefits payments,including refunds of employee contributions (3,041,011) (1,808,938) (1,121,573) (898,707) (699,399) (691,515) (514,739) (588,554) (394,472) (409,084) Net change in total pension liability 5,025,557 7,506,596 7,204,651 5,028,751 5,563,455 7,132,249 4,711,278 4,461,695 5,700,742 3,561,297 Total pension liability- beginning 79,184,727 71,678,131 64,473,480 59,444,729 53,881,274 46,749,025 42,037,747 37,576,052 31,875,310 28,314,013 Total pension liability- ending(a) $ 84,210,284 $ 79,184,727 $ 71,678,131 $ 64,473,480 $ 59,444,729 $ 53,881,274 $ 46,749,025 $ 42,037,747 $ 37,576,052 $ 31,875,310 Plan fiduciary net position: Contributions-employer $ 1,719,185 $ 1,849,234 $ 1,881,922 $ 1,603,198 $ 1,551,880 $ 1,589,440 $ 1,497,898 $ 1,302,614 $ 1,550,643 $ 1,548,543 Contributions-state 476,859 471,692 382,744 561,953 474,040 435,103 338,364 342,209 310,354 318,440 Contributions-employee 831,887 879,603 924,555 902,513 943,658 956,612 941,916 863,769 541,792 541,099 Contributions-buy back 171,436 - 10,811 10,039 121,590 - - - - - Net investment income(loss) 6,523,827 (11,446,124) 11,425,362 4,011,254 837,503 3,511,042 4,262,504 2,158,517 (614,811) 2,199,131 Benefit payments,including refunds of employee contributions (3,041,011) (1,808,938) (1,121,573) (898,707) (699,399) (691,515) (514,739) (588,554) (394,472) (409,084) Administrative expense (140,780) (150,723) (131,204) (87,902) (84,711) (71,805) (74,636) (66,033) (66,115) (55,898) Net change in plan fiduciary net position 6,541,403 (10,205,256) 13,372,617 6,102,348 3,144,561 5,728,877 6,451,307 4,012,522 1,327,391 4,142,231 Plan fiduciary net position- beginning 58,605,861 68,811,117 55,578,492 49,476,144 46,331,583 40,602,706 34,151,399 30,138,877 28,811,486 24,669,255 Prior period adjustment - - (139,992) - - - - - - - Plan fiduciary net position- ending(b) $ 65,147,264 $ 58,605,861 $ 68,811,117 $ 55,578,492 $ 49,476,144 $ 46,331,583 $ 40,602,706 $ 34,151,399 $ 30,138,877 $ 28,811,486 Net pension liability- ending(a)-(b) $ 19,063,020 $ 20,578,866 $ 2,867,014 $ 8,894,988 $ 9,968,585 $ 7,549,691 $ 6,146,319 $ 7,886,348 $ 7,437,175 $ 3,063,824 Plan fiduciary net position as a percentage ofthe total pension liability 77.36% 74.01% 96.00% 86.20% 83.23% 85.99% 86.85% 81.24% 80.21% 90.39% Covered payroll $ 7,724,116 $ 8,163,365 $ 8,580,555 $ 8,375,995 $ 8,668,447 $ 8,878,068 $ 8,741,677 $ 8,129,475 $ 8,047,155 $ 7,986,695 Net pension liability as a percentage of covered payroll 246.80% 252.09% 33.41% 106.20% 115.00% 85.04% 70.31% 97.01% 92.42% 38.36% 66 City of Aventura, Florida Required Supplementary Information Schedule of Contributions (Unaudited) Police Officer's Retirement Plan Last Ten Fiscal Years Actual Fiscal Actuarially Contribution Contribution Year Ended Determined Actual Deficiency Covered as a%of September 30, Contribution Contribution (Excess) Payroll Covered Payroll 2023 $ 2,196,044 $ 2,196,044 $ - $ 7,724,116 28.43% 2022 $ 2,320,926 $ 2,320,926 $ - $ 8,163,365 28.43% 2021 $ 2,264,666 $ 2,264,666 $ - $ 8,580,555 26.39% 2020 $ 2,210,676 $ 2,165,151 $ 45,525 $ 8,375,995 25.85% 2019 $ 1,924,394 $ 2,025,920 $ (101,526) $ 8,668,447 23.37% 2018 $ 1,951,222 $ 2,024,543 $ (73,321) $ 8,878,068 22.80% 2017 $ 1,826,049 $ 1,836,262 $ (10,213) $ 8,741,677 21.01% 2016 $ 1,698,166 $ 1,644,823 $ 53,343 $ 8,129,475 20.23% 2015 $ 1,830,896 $ 1,860,998 $ (30,102) $ 8,047,155 23.13% 2014 $ 1,828,554 $ 1,866,983 $ (38,429) $ 7,986,695 23.38% Notes to Schedule: Valuation date 10/1/2022 Mortality rate: Healthy Active Lives: Female: PubS.H-2010(Above median)for employees,set forward one year. Male: PubS.H-2010(Above median)for employees,set forward one year. Disabled Lives: 80%PubG.H-2010 for Disabled Retirees/20%PubS.H-2010 for Disables Retirees. All rates are projected generationally with Mortality Improvement Scale MP-2018. Healthy Retiree Lives: Female: PubS.H-2010 for healthy retirees,set forward one year. Male: PubS.H (Below median)for healthy retirees,set forward one year. Interest rate: 7.25% Salary Increases: 5.00% Inflation: 2.30% Actuarial cost method: Entry age normal actuarial cost method Actuarial valuation method: 5 year smoothed market 67 City of Aventura, Florida Required Supplementary Information Schedule of Investment Returns (Unaudited) Police Officer's Retirement Plan Last Ten Fiscal Years Fiscal Annual money-weighted rate Year Ended of return, net of September 30, investment expenses 2023 11.32 % 2022 (16.54) % 2021 20.55 % 2020 8.02 % 2019 1.68 % 2018 8.60 % 2017 11.97 % 2016 7.00 % 2015 (1.83) % 2014 8.87 % 68 City of Aventura, Florida Required Supplementary Information Schedule of Changes in Total OPEB Liability and Related Ratios Other Post-Employment Benefits (Unaudited) Last Ten Fiscal Years (1) Reporting period ending: 9/30/2023 9/30/2022 9/30/2021 9/30/2020 9/30/2019 9/30/2018 Measurement date: 913012022 913012021 913012020 913012019 913012018 913012017 Total OPEB Liability: Service cost $ 95,563 $ 99,574 $ 112,309 $ 109,038 $ 65,680 $ 33,459 Expected interest growth 54,289 47,421 87,298 45,557 27,175 23,363 Demographic experience (776,041) - (636,641) 288,869 611,405 - Benefit payments and refunds (45,447) (42,276) (88,651) (80,592) (72,858) (7,496) Assumption changes (259,620) (80,937) 292,938 803,820 (144,961) - Net change in total OPEB liability (931,256) 23,782 (232,747) 1,166,692 486,441 49,326 Total OPEB liability-beginning 2,161,160 2,137,378 2,370,125 1,203,433 716,992 667,666 Total OPEB liability-ending $ 1,229,904 $ 2,161,160 $ 2,137,378 $ 2,370,125 $ 1,203,433 $ 716,992 Covered-employee payroll $ 18,848,008 $ 16,988,435 $ 16,493,626 $ 16,008,236 $ 15,746,445 $ 12,595,559 Total OPEB liability as a percentage of covered-employee payroll 6.53% 12.72% 12.96% 14.81% 7.64% 5.69% Note: (1)This schedule is intended to illustrate information for 10 years. However,until a full 10-year trend is compiled,the City of Aventura should present information for those years for which information is available. Plan Assets: No assets are accumulated in a trust,or equivalent arrangement, that meets the criteria of GASB Codification P52.101 to pay related benefits for the OPEB plan. 69 SUPPLEMENTARY INFORMATION COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS City of Aventura,Florida Combining Balance Sheet Nonmajor Governmental Funds September 30,2023 Special Revenue Funds Debt Service Funds Capital Projects Fund Transportation Series Series Avemura Law and Series 2012(A) 2012(B) Series Charter High Total Police Federal Enforcement Street 2010&2011 Debt Debt 2018 Capital School Nonmajor Building Education 911 Forfeiture Trust Maintenance Debt Service Service Service Debt Service Projects Construction Governmental Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Funds Assets: Cash,cash equivalents and investments $ 2,586,360 $ 36,309 $ 64,686 $ 522,822 $ 149,D44 $ 6,194,520 $ 112,868 $ 4 $ 376,069 $ - $ 746,292 $ - $ 10,778,974 Due from othergovemments - 311 14,533 - - 533,781 - - - - - - 548,625 Prepaid items and other assets - - - - - 11097,167 - - - - - - 1,097,167 Total assets $ 2,586,360 $ 36,620 $ 79,219 $ 522,822 $ 149,044 $ 7,815,468 $ 112,868 $ 4 $ 376,069 $ - $ 746,292 $ - $ 12,424,766 Liabilities: Accounts payable $ 358,863 $ 1,500 $ 1,101 $ 1,320 $ - $ 214,365 $ - $ - $ - $ - $ 15,235 $ - $ 592,394 Accrued liabilities 5,505 - 7,080 - - - 112,611 - - - - - 125,196 Due to other governments 25,645 25,645 Unearned revenues - - - - - 160,000 - - - - - - 160,000 Total liabilities 3901013 11500 8,181 11320 - 3741365 1121611 - - 151235 - 903,225 Fund Balances: Nonspendable: Prepaid items and other assets - - - - - 1,097,167 - - - - - - 1,097,167 Restricted for: Public works/transportation - - - - - 6,343,936 - - - - - - 6,343,936 Public safety/law enforcement - 35,120 71,038 521,502 149,044 - - - - - - - 776,704 Community development 2,196,347 - - - - - - - - - - - 2,196,347 Capital projects - - - - - - - - - - 731,057 - 731,057 Debt service - - - - - - 257 4 376,069 - - - 376,330 Total fund balances 21196,347 351120 711038 5211502 1490044 71441,103 257 4 376,069 - 7311057 - 11,521,541 Total liabilities and fund balances $ 2,586,360 $ 36,620 $ 79,219 $ 522,822 $ 149,044 $ 7,815,468 $ 112,868 $ 4 $ 376,069 $ - $ 746,292 $ - $ 12,424,766 70 City of Aventura,Florida Combining Statement of Revenues,Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended September 30,2023 Special Revenue Funds Debt Service Funds Capital Projects Fund Transportation Series Series Series Aventura Law and Series 2012(A) 2012(B) 2018 Charter High Total Police Federal Enforcement Street 2010&2011 Debt Debt Debt Capital School Nonmajor Building Education 911 Forfeiture Trust Maintenance Debt Service Service Service Service Projects Construction Governmental Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Funds Revenues: Intergovernmental $ - $ - $ 95,327 $ - $ - $ 3,352,471 $ - $ - $ - $ - $ - $ - $ 3,447,798 Charges for services - - - - - 30,519 - - - - - - 30,519 Fines and forfeitures 350 27,904 - 11,940 3,135 - - - - - - - 43,329 Licenses,permits and impactfees 5,360,940 - - - - 166,974 - - - - 18,511 - 5,546,325 Investment income 35,948 1,319 3,216 19,712 5,564 252,817 - - - - 27,902 - 346,478 Miscellaneous - - - - - 721000 - - - - - - 72,000 Total revenues 5,397,138 29,223 98,543 31,652 8,699 3,874,781 - - - - 46,413 - 9,486,449 Expenditures: Current: Public safety 4,282,940 4,494 91,083 12,000 10,300 - - - - - - - 4,400,817 Public works - - - - - 2,594,971 - - - - - - 2,594,971 Capital outlay 13,272 - - 44,973 - 464,094 - - - - 72,221 60,101 654,661 Debt service: Principal - - - - - - 950,000 316,642 353,358 280,000 - - 1,900,000 Interest - - - - - - 241,834 43,834 49,430 217,212 - - 552,310 Total expenditures 4,296,212 4,494 91,083 56,973 10,300 3,059,065 1,191,834 360,476 402,788 497,212 72,221 60,101 10,102,759 Excess(deficiency)of revenues over expenditures 1,100,926 24,729 7,460 (25,321) (1,601) 815,716 (1,191,834) (360,476) (402,788) (497,212) (25,808) (60,101) (616,310) Other financing sources (uses) Transfers out (535,449) - - - - - - - - - - - (535,449) Transfersin - - - - - - 1/191/834 3601476 4441000 497,212 - 41,578 2,535,100 Total otherfinancing sources(uses) (535,449) - - - - - 1,191,834 360,476 444,000 497,212 - 41,578 1,999,651 Net change in fund balances 565,477 24,729 7,460 (25,321) (1,601) 815,716 - - 41,212 - (25,808) (18,523) 1,383,341 Fund balances,beginning* 1,630,870 10,391 63,578 546,823 150,645 6,625,387 257 4 334,857 - 756,865 18,523 10,138,200 Fund balances,ending $ 2,196,347 $ 35,120 $ 71,038 $ 521,502 $ 149,044 $ 7,441,103 $ 257 $ 4 $ 376,069 $ - $ 731,057 $ - $ 11,521,541 ' Effective October 1,2022,the City separated its Building Fund from General Fund 71 City of Aventura, Florida Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Building Fund - Special Revenue Fund For the Year Ended September 30, 2023 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Licenses, permits and impact fees $ - $ 4,886,741 $ 5,360,840 $ 474,099 Fines and forfeitures - - 350 350 Investment income - - 35,948 35,948 Total revenues - 4,886,741 5,397,138 510,397 Expenditures: Public safety - 4,325,803 4,282,940 42,863 Capital outlay - 30,938 13,272 17,666 Total expenditures - 4,356,741 4,296,212 60,529 Excess (deficiency) of revenues over expenditures - 530,000 1,100,926 570,926 Other financing sources (uses): Transfers out - (530,000) (535,449) (5,449) Total other financing sources (uses) - (530,000) (535,449) (5,449) Net change in fund balance $ - $ - $ 565,477 $ 565,477 * Effective October 1, 2022, the City separated its Building Fund from the General Fund 72 City of Aventura, Florida Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Police Education Fund - Special Revenue Fund For the Year Ended September 30, 2023 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Fines and forfeitures $ 5,500 $ 5,500 $ 27,904 $ 22,404 Investment income - - 1,319 1,319 Total revenues 5,500 5,500 29,223 23,723 Expenditures: Public safety 5,500 5,500 4,494 1,006 Total expenditures 5,500 5,500 4,494 1,006 Net change in fund balance $ - $ - $ 24,729 $ 24,729 73 City of Aventura, Florida Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 911 Fund - Special Revenue Fund For the Year Ended September 30, 2023 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Intergovernmental revenue $ 76,200 $ 76,200 $ 95,327 $ 19,127 Investment income - - 3,216 3,216 Total revenues 76,200 76,200 98,543 22,343 Expenditures: Public safety 97,210 97,210 91,083 6,127 Capital outlay 9,590 9,590 - 9,590 Total expenditures 106,800 106,800 91,083 15,717 Excess (deficiency) of revenues over expenditures (30,600) (30,600) 7,460 38,060 Other financing sources (uses): Appropriated fund balance 30,600 30,600 - (30,600) Total other financing sources (uses) 30,600 30,600 - (30,600) Net change in fund balance $ - $ - $ 7,460 $ 7,460 74 City of Aventura, Florida Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Federal Forfeiture Fund - Special Revenue Fund For the Year Ended September 30, 2023 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Fines and forfeitures $ - $ - $ 11,940 $ 11,940 Investment income - 18,480 19,712 1,232 Total revenues - 18,480 31,652 13,172 Expenditures: Public safety - 12,100 12,000 100 Capital outlay - 45,000 44,973 27 Total expenditures - 57,100 56,973 127 Excess (deficiency) of revenues over expenditures - (38,620) (25,321) 13,299 Other financing sources (uses): Appropriated fund balance - 38,620 - (38,620) Total other financing sources (uses) - 38,620 - (38,620) Net change in fund balance $ - $ - $ (25,321) $ (25,321) 75 City of Aventura, Florida Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Law Enforcement Trust Fund - Special Revenue Fund For the Year Ended September 30, 2023 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Fines and forfeitures $ - $ 3,135 $ 3,135 $ - Investment income - 5,210 5,564 354 Total revenues - 8,345 8,699 354 Expenditures: Public safety - 10,300 10,300 - Total expenditures - 10,300 10,300 - Net change in fund balance $ - $ (1,955) $ (1,601) $ 354 76 City of Aventura, Florida Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual -Transportation and Street Maintenance Fund - Special Revenue Fund For the Year Ended September 30, 2023 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Intergovernmental revenue $ 2,260,000 $ 2,350,000 $ 3,352,471 $ 1,002,471 Charges for services 35,000 35,000 30,519 (4,481) Licenses, permits and impact fees - - 166,974 166,974 Miscellaneous revenue - - 72,000 72,000 Investment income 3,000 3,000 252,817 249,817 Total revenues 2,298,000 2,388,000 3,874,781 1,486,781 Expenditures: Public works 2,561,000 2,651,000 2,594,971 56,029 Capital outlay 138,500 464,094 464,094 - Total expenditures 2,699,500 3,115,094 3,059,065 56,029 Excess (deficiency) of revenues over expenditures (401,500) (727,094) 815,716 1,542,810 Other financing sources (uses): Appropriated fund balance 401,500 727,094 - (727,094) Total other financing sources (uses) 401,500 727,094 - (727,094) Net change in fund balance $ - $ - $ 815,716 $ 815,716 77 City of Aventura, Florida Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Series 2010 & 2011 - Debt Service Fund For the Year Ended September 30, 2023 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) Revenues: $ - $ - $ - $ - Expenditures: Debt service: Principal 950,000 950,000 950,000 - Interest 241,834 241,834 241,834 - Total expenditures 1,191,834 1,191,834 1,191,834 - Excess (deficiency) of revenues over expenditures (1,191,834) (1,191,834) (1,191,834) - Other financing sources (uses): Transfers in 1,191,834 1,191,834 1,191,834 - Total other financing sources (uses) 1,191,834 1,191,834 1,191,834 - Net change in fund balance $ - $ - $ - $ - 78 City of Aventura, Florida Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Series 2012 (A)- Debt Service Fund For the Year Ended September 30, 2023 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) Revenues: $ - $ - $ - $ - Expenditures: Debt service: Principal 316,642 316,642 316,642 - Interest 43,834 43,834 43,834 - Total expenditures 360,476 360,476 360,476 - Excess (deficiency) of revenues over expenditures (360,476) (360,476) (360,476) - Other financing sources (uses): Transfers in 360,476 360,476 360,476 - Total other financing sources (uses) 360,476 360,476 360,476 - Net change in fund balance $ - $ - $ - $ - 79 City of Aventura, Florida Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Series 2012 (B) - Debt Service Fund For the Year Ended September 30, 2023 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) Revenues: $ - $ - $ - $ - Expenditures: Debt service: Principal 353,358 353,358 353,358 - Interest 49,430 49,430 49,430 - Total expenditures 402,788 402,788 402,788 - Excess (deficiency) of revenues over expenditures (402,788) (402,788) (402,788) - Other financing sources (uses): Transfers in 402,788 402,788 444,000 41,212 Total other financing sources (uses) 402,788 402,788 444,000 41,212 Net change in fund balance $ - $ - $ 41,212 $ 41,212 80 City of Aventura, Florida Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Series 2018 - Debt Service Fund For the Year Ended September 30, 2023 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) Revenues: $ - $ - $ - $ - Expenditures: Debt service: Principal 280,000 280,000 280,000 - Interest 217,212 217,212 217,212 - Total expenditures 497,212 497,212 497,212 - Excess (deficiency) of revenues over expenditures (497,212) (497,212) (497,212) - Other financing sources (uses): Transfers in 497,212 497,212 497,212 - Total other financing sources (uses) 497,212 497,212 497,212 - Net change in fund balance $ - $ - $ - $ - 81 City of Aventura, Florida Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Capital Projects Fund For the Year Ended September 30, 2023 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Licenses, permits and impact fees $ - $ - $ 18,511 $ 18,511 Investment income - - 27,902 27,902 Total revenues - - 46,413 46,413 Expenditures: Capital outlay 864,407 864,407 72,221 792,186 Total expenditures 864,407 864,407 72,221 792,186 Excess (deficiency) of revenues over expenditures (864,407) (864,407) (25,808) 838,599 Other financing sources (uses): Appropriated fund balance 864,407 864,407 - (864,407) Total other financing sources (uses) 864,407 864,407 - (864,407) Net change in fund balances $ - $ - $ (25,808) $ (25,808) 82 City of Aventura, Florida Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Aventura Charter High School Construction Fund - Capital Projects Fund For the Year Ended September 30, 2023 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) Revenues: $ - $ - $ - $ - Expenditures: Capital outlay - 80,000 60,101 19,899 Total expenditures - 80,000 60,101 19,899 Excess (deficiency) of revenues over expenditures - (80,000) (60,101) (19,899) Other financing sources (uses): Transfers in - 61,477 41,578 (19,899) Appropriated fund balance - 18,523 - (18,523) Total other financing sources (uses) - 80,000 41,578 (38,422) Net change in fund balances $ - $ - $ (18,523) $ (18,523) 83 STATISTICAL SECTION STATISTICAL SECTION This part of the City of Aventura's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, required supplementary information, and supplementary information says about the City's overall financial health. Contents Page Financial Trends 84-90 These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity 91-94 These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax. Debt Capacity 95-98 These schedules contain 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. Demographic and Economic Information 99-100 These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating Information 101-103 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. Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant years. City of Aventura,Florida Net Position By Component Last Ten Fiscal Years (Accrual Basis of Accounting) 2014 2015 2016 2017 2019 2019 2020 2021 2022 2023 Governmental Activities: Net investment in capital assets $ 69,229,415 $ 68,719,115 $ 69,973,180 $ 69,676,810 $ 56,363,585 $ 83,298,863 $ 83,259,653 $ 81,618,679 $ 81,608,195 $ 86,775,707 Restricted 3,778,520 3,271,471 3,856,017 5,084,902 17,073,477 8,300,569 7,873,676 8,012,142 8,507,330 8,228,027 Unrestricted 36,726,441 38,897,287 37,512,481 40,147,287 45,458,005 31,633,822 30,683,450 33,075,470 37,069,874 46,364,281 Total governmental activities,net position $ 109,734,376 $ 110,887,873 $ 111,341,678 $ 114,908,999 $ 118,895,067 $ 123,233,254 $ 121,816,779 $ 122,706,291 $ 127,185,399 $ 141,368,015 Business-Type Activities: Net investment in capital assets $ 6,532,125 $ 6,775,365 $ 6,809,456 $ 8,464,648 $ 8,942,582 $ 8,959,654 $ 9,302,065 $ 9,710,999 $ 9,671,638 $ 9,634,926 Unrestricted 2,056,616 2,549,418 2,265,033 912,350 314,906 516,304 810,750 623,861 1,194,248 1,642,739 Total business-type activities,net position $ 8,588,741 $ 9,324,783 $ 9,074,489 $ 9,376,998 $ 9,257,488 $ 9,475,958 $ 10,112,815 $ 10,334,860 $ 10,865,886 $ 11,277,665 Primary Government: Net investment in capital assets $ 75,761,540 $ 75,494,480 $ 76,782,636 $ 78,141,458 $ 65,306,167 $ 92,258,517 $ 92,561,718 $ 91,329,678 $ 91,279,833 $ 96,410,633 Restricted 3,778,520 3,271,471 3,856,017 5,084,902 17,073,477 8,300,569 7,873,676 8,012,142 8,507,330 8,228,027 Unrestricted 38,783,057 41,446,705 39,777,514 41,059,637 45,772,911 32,150,126 31,494,200 33,699,331 38,264,122 48,007,020 Total primary government,net position $ 118,323,117 $ 120,212,656 $ 120,416,167 $ 124,285,997 $ 128,152,555 $ 132,709,212 $ 131,929,594 $ 133,041,151 $ 138,051,285 $ 152,645,680 84 City of Aventura,Florida Changes in Net Position Last Ten Fiscal Years (Accrual Basis of Accounting) 2014 2015 2016 2017 2019 2019 2020 2021 2022 2023 Expenses: Governmental activities: General government $ 5,340,426 $ 5,472,458 $ 5,435,311 $ 6,152,071 $ 6,852,644 $ 6,499,306 $ 6,623,623 $ 6,530,759 $ 7,429,382 $ 8,474,985 Public safety 21,178,335 21,260,568 28,476,913 22,977,305 26,270,646 28,048,176 25,293,219 26,134,934 28,260,645 30,659,924 Community services 16,927,314 18,108,075 18,537,066 13,906,239 13,883,644 14,522,255 20,174,129 21,581,551 26,491,889 33,684,863 Public works - - - 5,972,296 6,808,327 6,594,647 5,078,284 5,490,916 5,995,815 5,207,367 Interest and fiscal charges 904,834 811,973 780,591 691,208 823,128 915,785 839,016 705,175 647,028 586,795 Total governmental activities 44,350,909 45,653,074 53,229,881 49,699,119 54,638,389 56,580,169 58,008,271 60,443,335 68,824,759 78,613,934 Business-type activities: 5tormwater utility 805,636 693,864 1,165,564 990,716 1,479,473 1,135,236 1,067,621 1,071,324 1,252,380 1,131,279 Total business-type activities 805,636 693,864 1,165,564 990,716 1,479,473 1,135,236 1,067,621 1,071,324 1,252,380 1,131,279 Total primary government expenses $ 45,156,545 $ 46,346,938 $ 54,395,445 $ 50,689,835 $ 56,117,862 $ 57,715,405 $ 59,075,892 $ 61,514,659 $ 70,077,139 $ 79,745,213 Program Revenues: Governmental activities: Charges for services: Public safety $ 6,369,993 $ 6,839,027 $ 9,155,350 $ 8,438,187 $ 10,703,033 $ 9,013,897 $ 5,956,969 $ 7,257,567 $ 11,289,058 $ 11,836,110 Public works - - - - - - - 50,451 371,747 197,493 Community services 1,633,233 1,828,016 1,940,708 2,008,547 2,168,119 2,415,250 1,560,808 1,187,005 2,294,725 3,928,853 Operating grants and contributions 7,841,160 8,261,217 10,330,075 8,951,723 9,859,151 9,494,299 11,058,743 13,121,152 17,543,366 27,446,402 Capital grants and contributions 4,428,098 1,253,396 475,022 237,244 288,174 1,270,000 994,779 1,623,343 1,499,951 1,111,820 Total governmental activities program revenues 20,272,484 18,181,656 21,901,155 19,635,701 23,018,477 22,193,446 19,571,299 23,239,518 32,998,847 44,520,678 Business-type activities: Charges for services: 5tormwater utility 857,558 926,278 904,116 1,283,915 1,253,514 1,347,009 1,442,333 1,376,473 1,331,986 1,496,112 Capital grants and contributions - - - - - - 252,106 - 458,194 - Total business-type activities program revenues 857,558 926,278 904,116 1,283,915 1,253,514 1,347,009 1,694,439 1,376,473 1,790,180 1,496,112 Total primary government program revenues $ 21,130,042 $ 19,107,934 $ 22,805,271 $ 20,919,616 $ 24,271,991 $ 23,540,455 $ 21,265,738 $ 24,615,991 $ 34,789,027 $ 46,016,790 85 City of Aventura,Florida Changes in Net Position Last Ten Fiscal Years (continued) (Accrual Basis of Accounting) 2014 2015 2016 2017 2019 2019 2020 2021 2022 2023 Net Revenue/Expense: Governmental activities $ (24,078,425) $ (27,471,418) $ (31,328,726) $ (30,063,418) $ (31,619,912) $ (34,386,723) $ (38,436,972) $ (37,203,817) $ (35,825,912) $ (34,093,256) Business-type activities 51,922 232,414 (261,448) 293,199 (225,959) 211,773 626,818 305,149 537,800 364,833 Total primary government,net expense $ (24,026,503) $ (27,239,004) $ (31,590,174) $ (29,770,219) $ (31,845,871) $ (34,174,950) $ (37,810,154) $ (36,898,668) $ (35,288,112) $ (33,728,423) General Revenue and Transfers: Governmental activities: Taxes: Ad valorem taxes $ 12,791,444 $ 13,977,630 $ 15,008,874 $ 16,349,089 $ 16,747,025 $ 17,051,593 $ 17,557,171 $ 17,346,855 $ 17,216,330 $ 18,820,560 Utility service taxes and other 7,933,535 7,872,483 7,720,496 7,655,803 8,052,694 9,158,398 9,435,432 9,604,135 10,139,401 11,135,742 Franchise fees 2,289,721 2,294,667 2,365,853 1,979,437 2,544,772 2,399,456 2,201,619 4,381,329 5,138,500 5,736,832 Intergovernmental revenue-unrestricted 5,767,456 5,960,760 6,157,110 7,141,485 6,632,917 6,413,594 5,336,308 6,364,811 8,113,189 9,065,470 Impact fees 77,607 6,775 255,022 145,498 1,140,494 1,292,803 598,318 - - - Investment income(loss) 89,941 182,464 260,113 347,537 650,183 1,627,125 1,432,822 75,749 (921,297) 3,218,155 Miscellaneous revenues 1,534,877 377,908 15,063 11,890 28,560 781,941 459,534 299,850 618,897 299,113 Net transfers - - - - - - (67,841) - - - Total governmental activities 30,484,581 30,672,687 31,782,531 33,630,739 35,796,645 38,724,910 36,953,363 38,072,729 40,305,020 48,275,872 Business-type activities: Intergovernmental- (unrestricted) - 496,293 - - 100,000 - - - - - Miscellaneous - - - - - - - (83,813) - - Investment income(loss) 3,657 7,335 11,154 9,310 6,449 6,697 10,039 709 (6,774) 46,946 Total business- type activities 3,657 503,628 11,154 9,310 106,449 6,697 10,039 (83,104) (6,774) 46,946 Total primary government $ 30,488,238 $ 31,176,315 $ 31,793,685 $ 33,640,049 $ 35,903,094 $ 38,731,607 $ 36,963,402 $ 37,989,625 $ 40,298,246 $ 48,322,818 Change in Net Position: Governmental activities $ 6,406,156 $ 3,201,269 $ 453,805 $ 3,567,321 $ 4,176,733 $ 4,338,187 $ (1,483,609) $ 868,912 $ 4,479,108 $ 14,182,616 Business-type activities 55,579 736,042 (250,294) 302,509 (119,510) 218,470 636,857 222,045 531,026 411,779 Total primary government $ 6,461,735 $ 3,937,311 $ 203,511 $ 3,869,830 $ 4,057,223 $ 4,556,657 $ (846,752) $ 1,090,957 $ 5,010,134 $ 14,594,395 Note: (1)Effective 2020,the Charter Schools of the City are presented as of and for the year ended June 30th. 86 City of Aventura, Florida Governmental Activities Tax Revenues by Source Last Ten Fiscal Years (Accrual Basis of Accounting) Tax Utility Fiscal Roll Ad Valorem Service Franchise Year Year Taxes Taxes Fees Total 2014 2013 $ 12,791,444 $ 7,933,535 $ 2,289,721 $ 23,014,700 2015 2014 13,977,630 7,872,483 2,294,667 24,144,780 2016 2015 15,008,874 7,720,496 2,365,853 25,095,223 2017 2016 16,349,089 7,655,803 1,979,437 25,984,329 2018 2017 16,747,025 8,052,694 2,544,772 27,344,491 2019 2018 17,051,593 9,158,398 2,399,456 28,609,447 2020 2019 17,557,171 9,435,432 2,201,619 29,194,222 2021 2020 17,346,855 9,604,135 4,381,329 31,332,319 2022 2021 17,216,330 10,139,401 5,138,500 32,494,231 2023 2022 18,820,560 11,135,742 5,736,832 35,693,134 87 City of Aventura,Florida Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2014 2015 2016 2017 2019 2019 2020 2021 2022 2023 General Fund: Nonspendable $ 358,893 $ 448,765 $ 416,956 $ 496,322 $ 537,563 $ 630,695 $ 351,524 $ 696,872 $ 694,042 $ 1,207,785 Committed 21,378,324 21,405,561 21,575,911 21,895,756 19,772,304 19,772,304 19,772,304 19,772,304 19,772,304 5,188,299 Assigned 789,486 313,426 898,495 1,541,402 559,263 399,087 361,257 841,192 691,054 772,506 Unassigned 13,582,754 16,912,171 19,724,328 21,290,153 15,541,095 20,350,488 21,148,403 24,156,021 25,782,664 49,030,842 Total General Fund $ 36,109,457 $ 39,079,923 $ 42,615,690 $ 45,223,633 $ 36,410,225 $ 41,152,574 $ 41,633,488 $ 45,466,389 $ 46,940,064 $ 56,199,432 All other governmental funds: Nonspendable $ 9,466 $ 9,466 $ 11,961 $ 11,961 $ 11,961 $ 9,466 $ 9,465 $ 23,019 $ 23,330 $ 1,254,385 Committed - - - - - 1,779,618 - - - - Restricted 3,778,520 3,271,471 4,286,433 5,084,902 17,073,477 8,300,569 7,873,676 8,012,142 8,507,330 10,424,374 Assigned 2,999,094 4,376,429 3,877,756 2,648,408 3,361,029 15,784 2,028,124 657,245 1,494,773 4,412,929 Unassigned - - - - - (1,350,803) (2,319,884) (2,473,438) (3,215,374) (5,751,049) Total all other governmental funds $ 6,787,080 $ 7,657,366 $ 8,176,150 $ 7,745,271 $ 20,446,467 $ 8,754,634 $ 7,591,381 $ 6,218,968 $ 6,810,059 $ 10,340,639 * Effective October 1,2022,the City separated its Building Fund from General Fund 88 City of Aventura,Florida Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Revenues: Ad valorem taxes $ 12,791,444 $ 13,977,630 $ 15,008,874 $ 16,349,089 $ 16,747,025 $ 17,051,593 $ 17,557,171 $ 17,346,855 $ 17,216,330 $ 18,820,560 Utility service and other 7,894,830 7,872,483 7,720,496 7,655,803 8,052,694 9,158,398 9,230,401 9,696,071 10,252,496 11,135,742 Franchise fees 2,289,722 2,294,667 2,374,953 1,979,437 2,544,772 2,399,456 2,201,619 4,381,329 5,138,500 5,736,832 Licenses,permits and impact fees 3,237,097 3,937,322 5,714,913 5,124,218 8,150,602 5,485,397 2,818,872 2,872,946 6,155,457 5,564,230 Intergovernmental revenues 13115,271 13,707,814 13,952,101 14,496,892 15,200,778 17,293,273 17,319,096 20,517,005 25,665,637 34,515,829 Charges for services 3:147,989 3,721,362 5,061,619 4,363,712 4,313,718 4,711,865 3,562,199 3,486,725 4,478,750 6,142,526 Fines and forfeitures 2,652,615 2,783,222 3,008,304 2,787,628 2,653,695 2,706,828 1,734,024 2,135,352 3,321,323 4,255,700 Investment income(loss) 89,941 182,464 260,077 347,537 650,183 1,627,125 1,432,822 75,749 (921,297) 3,218,155 Miscellaneous 474,234 336,529 3111886 264,948 5141920 437,552 690,764 3391400 8231223 4,867,061 Total revenues 45,683,143 48,8131493 53/413/223 53/369/264 58,828,387 60,8711487 56,546,968 60,8511432 721130,419 94,256,635 Expenditures: Current: General government 4,536,983 4,631,947 4,786,053 5,303,756 5,839,354 5,529,600 5,835,994 5,664,264 6,720,694 7,596,594 Public safety 19,682,937 20,151,306 22,019,805 22,835,279 24,752,571 24,528,213 23,831,441 24,828,526 27,729,442 27,726,682 Community services 13,654,908 13,878,863 14,898,678 11,445,973 11,893,206 12,767,001 14,837,524 17,297,056 21,949,087 28,469,787 Public works - - - 4,421,461 4,733,897 4,783,972 4,877,664 5,230,744 5,948,624 5,946,099 Capital outlay 5,074,822 3,804,602 5,125,295 4,653,942 12,150,289 17,247,114 4,339,903 2,935,519 5,210,379 9,569,388 Debt service: Principal 1,675,000 1,735,000 1,790,000 1,850,000 1,930,000 2,120,000 2,705,000 1,785,000 1,945,000 1,900,000 Interest 867,979 8111973 7531904 6931679 7691942 8671530 8011084 6701435 6121437 552,310 Total expenditures 45,492,629 45/013/591 49/373/735 511204,090 62/069/159 67,9431430 57,228,600 58,4111544 69/915/653 81,660,850 Excess(deficiency)of revenues overexpenditures 190,514 3,799,902 4,039,488 2,165,174 (3,240,772) (6,971,943) (681,632) 2,439,888 2,214,766 12,595,785 Other financing sources(uses): Issuance of debt - - - - 7,100,000 - - - - 344,163 Sale of general capital assets 1,128,907 40,850 15,063 11,890 28,560 22,459 - - - - Transfers in 2,773,685 2,666,334 2,644,908 2,644,502 9,273,335 3,478,942 3,743,353 2,744,214 5,437,416 3,220,549 Transfers out (2,773,685) (2,666,334) (2,644,908) (2,644,502) (9,273,335) (3,478,942) (3,810,994) (2,744,214) (5,587,416) (3,370,549) Total other financing sources(uses) 1,128,907 40,850 15,063 11,890 7,128,560 22,459 (67,641) - (150,000) 194,163 Net change in fund balances $ 1,319,421 $ 3,840,752 $ 4,054,551 $ 2,177,064 $ 3,887,788 $ (6,949,484) $ (749,273) $ 2,439,888 $ 2,064,766 $ 12,789,948 Debt service as a percentage of noncapital expenditures 6.17% 6.01% 5.63% 5.46% 4.67% 5.84% 6.41% 4.37% 3.72% 3.40% 89 City of Aventura,Florida General Governmental Revenues By Source Last Ten Fiscal Years (Modified Accrual Basis of Accounting) Licenses, Inter- Fiscal Ad Valorem Utility Taxes Franchise Permits and Governmental Charges Fines and Investment Year Taxes and Other Fees Impact Fees Revenues for Services Forfeitures Income(Loss) Miscellaneous Total 2014 $ 12,791,444 $ 7,884,830 $ 2,289,722 $ 3,237,097 $ 13,115,271 $ 3,147,989 $ 2,652,615 $ 89,941 $ 474,234 $ 45,683,143 2015 13,977,630 7,872,483 2,294,667 3,937,322 13,707,814 3,721,362 2,783,222 182,464 336,529 48,813,493 2016 15,008,874 7,720,496 2,374,953 5,714,913 13,952,101 5,061,619 3,008,304 260,077 311,886 53,413,223 2017 16,349,089 7,655,803 1,979,437 5,124,218 14,496,892 4,363,712 2,787,628 347,537 264,948 53,369,264 2018 16,747,025 8,052,694 2,544,772 8,150,602 15,200,778 4,313,718 2,653,695 650,183 514,920 58,828,387 2019 17,051,593 9,158,398 2,399,456 5,485,397 17,293,273 4,711,865 2,706,828 1,627,125 437,552 60,871,487 2020 17,557,171 9,230,401 2,201,619 2,818,872 17,319,096 3,562,199 1,734,024 1,432,822 690,764 56,546,968 2021 17,346,855 9,696,071 4,381,329 2,872,946 20,517,005 3,486,725 2,135,352 75,749 339,400 60,851,432 2022 17,216,330 10,252,496 5,138,500 6,155,457 25,665,637 4,478,750 3,321,323 (921,297) 823,223 72,130,419 2023 18,820,560 11,135,742 5,736,832 5,564,230 34,515,829 6,142,526 4,255,700 3,218,155 4,867,061 94,256,635 90 City of Aventura,Florida Assessed Value and Estimated Actual Assessed Value of Taxable Property Last Ten Fiscal Years Less: Assessed Tax Total Total Estimated Value as a Tax Exempt Taxable Direct Actual Percentage Fiscal Roll Real Personal Real Assessed Tax Taxable of Actual Year Year Property Property Property Value Rate Value(1) Value 2014 2013 $ 8,109,509,199 $ 211,480,897 $ (534,557,698) $ 7,786,432,398 1.7261 $ 9,019,164,457 $ 86.332% 2015 2014 8,734,453,409 198,681,857 (538,824,136) 8,394,311,130 1.7261 10,144,322,013 82.749% 2016 2015 9,418,840,654 208,455,823 (532,334,375) 9,094,962,102 1.7261 11,145,485,996 81.602% 2017 2016 10,256,329,248 216,738,181 (571,373,185) 9,901,694,244 1.7261 12,029,604,133 82.311% 2018 2017 10,450,567,929 223,735,802 (575,305,868) 10,098,997,863 1.7261 11,839,266,628 85.301% 2019 2018 10,669,786,837 251,121,004 (555,067,665) 10,365,840,176 1.7261 11,891,380,991 87.171% 2020 2019 11,012,770,618 286,759,608 (559,343,594) 10,740,186,632 1.7261 12,261,439,432 87.593% 2021 2020 10,835,195,692 309,145,157 (594,123,975) 10,550,216,874 1.7261 11,824,717,397 89.222% 2022 2021 10,775,110,254 301,043,151 (624,796,747) 10,451,356,658 1.7261 11,644,779,674 89.751% 2023 2022 11,687,926,721 325,924,234 (645,459,416) 11,368,391,539 1.7261 13,439,540,815 84.589% Note: (1)Florida Law requires that all property be assessed at current fair market value. 91 City of Aventura,Florida Property Tax Rates Direct and Overlapping Governments (Per$1,000 of Taxable Value) Last Ten Fiscal Years Overlapping Rates City of Aventura School District Regional Miami-Dade County Other South Total Florida Florida Direct Tax Debt Total Debt Total Water Inland Total Debt Fire Total and Fiscal Roll Operating Service City Operating Service School Management Everglades Okeechobee Navigational Regional Operating Service and Fire County Children's Overlapping Year Year Millage Millage Millage Millage Millage Mileage Mileage Project Basin District Millage Millage Millage Rescue Debt Library Millage Trust Rates 2014 2013 1.7261 0.0000 1.7261 7.6440 0.3330 7.9770 0.3523 0.0587 0.0000 0.0345 0.4455 4.7035 0.4220 2.4496 0.0127 0.1725 7.7603 0.5000 18.4089 2015 2014 1.7261 0.0000 1.7261 7.7750 0.1990 7.9740 0.1577 0.0548 0.1717 0.0345 0.4187 4.6669 0.4500 2.4207 0.0114 0.2840 7.8330 0.5000 18.4518 2016 2015 1.7261 0.0000 1.7261 7.4130 0.1990 7.6120 0.1459 0.0506 0.1586 0.0320 0.3871 4.6669 0.4500 2.4207 0.0086 0.2840 7.8302 0.5000 18.0554 2017 2016 1.7261 0.0000 1.7261 7.1380 0.1840 7.3220 0.1359 0.0471 0.1477 0.0320 0.3627 4.6669 0.4000 2.4207 0.0075 0.2840 7.7791 0.5000 17.6899 2018 2017 1.7261 0.0000 1.7261 6.7740 0.2200 6.9940 0.1275 0.0"1 0.1384 0.0320 0.3420 4.6669 0.4000 2.4207 0.0075 0.2840 7.7791 0.4673 17.3085 2019 2018 1.7261 0.0000 1.7261 6.5040 0.2290 6.7330 0.1209 0.0417 0.1310 0.0320 0.3256 4.6669 0.4644 2.4207 0.0000 0.2840 7.8360 0.4415 17.0622 2020 2019 1.7261 0.0000 1.7261 7.0250 0.1230 7.1480 0.1152 0.0397 0.1246 0.0320 0.3115 4.6669 0.4780 2.4207 0.0000 0.2840 7.8496 0.4680 17.5032 2021 2020 1.7261 0.0000 1.7261 6.9360 0.1930 7.1290 0.1103 0.0380 0.1192 0.0320 0.2995 4.6669 0.4780 2.4207 0.0000 0.2840 7.8496 0.4507 17.4549 2022 2021 1.7261 0.0000 1.7261 6.8290 0.1800 7.0090 0.1061 0.0365 0.1146 0.0320 0.2892 4.6669 0.5075 2.4207 0.0000 0.2840 7.8791 0.5000 17.4034 2023 2022 1.7261 0.0000 1.7261 6.4240 0.1650 6.5890 0.0948 0.0327 0.1026 0.0320 0.2621 4.6202 0.4853 2.3965 0.0000 0.2812 7.7832 0.5000 16.8604 Source:Miami-Dade County Appraiser's Office. 92 City of Aventura,Florida Principal Property Taxpayers Current Year and Nine Years Ago Fiscal Year 2023 2014 Percentage Percentage Total Total Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Type of Use Value Rank Value Value Rank Value Aventura Mall Ventures Shopping Center $ 759,554,955 1 6.68% $ 443,421,372 1 5.69% Miami Beach Health Care Group,Ltd. Hospital&Health Care Facility 181,748,786 2 1.60% 141,888,772 2 1.82% Tumberry Isle Resort,LP Golf Course,Hotel&Marina 140,446,938 3 1.24% 71,632,473 4 0.92% Aventura Opportunity Owner LLC Offices&retail 88,000,000 4 0.77% - - Florida Power&Light Co. Electrical Utility Company 84,507,832 5 0.74% 47,927,516 6 0.62% 10X Centre LLC Office Building 70,000,000 6 0.62% - - Promventure Limited Partnership Shopping Center 69,744,631 7 0.61% 36,274,978 10 0.47% Summit Properties Partnership,LP Rental Apartment Complex 61,600,000 8 0.54% 48,500,000 5 0.62% Aventura Hospitality LLC Hotel 57,599,324 9 0.51% - - SCG Atlas Aventura LLC Multi-Family Residences 55,708,400 10 0.49% - - CC-Aventura Inc. Independent/Assisted Living Facility - - 73,350,000 3 0.94% Bruce Strohm and D.Neithercut TRS Rental Apartment Complex 38,950,000 8 0.50% NNN Aventura Harbour Centre,LLC Mixed Use Zones&Offices Living 39,600,000 7 0.51% OTP Capital LLC Office Building 36,740,000 9 0.47% Totals $ 1,568,910,866 13.80% $ 978,285,111 12.56% Source:Miami-Dade County-Office of the Property Appraiser. 93 City of Aventura,Florida Property Tax Levies and Collections Last Ten Fiscal Years Percentage Percentage of Current of Total (1) Tax (2) Tax Tax Property Property Net Current Collections Delinquent Total Collection Fiscal Roll Tax Tax Tax Tax to Net Tax Tax to Property Year Year Levy Discount Levy Collection Tax Levy Collection Collection Tax Levy 2014 2013 13,440,161 537,606 12,902,555 12,669,112 98.19% 122,332 12,791,444 95.17% 2015 2014 14,489,420 579,577 13,909,843 13,572,764 97.58% 404,866 13,977,630 96.47% 2016 2015 15,698,814 627,953 15,070,861 14,932,036 99.08% 76,838 15,008,874 95.61% 2017 2016 17,091,314 683,653 16,407,661 15,905,409 96.94% 443,680 16,349,089 95.66% 2018 2017 17,431,880 697,275 16,734,605 16,211,763 96.88% 535,262 16,747,025 96.07% 2019 2018 17,892,477 715,699 17,176,778 16,413,368 95.56% 638,225 17,051,593 95.30% 2020 2019 18,538,636 741,545 17,797,091 16,771,344 94.24% 785,827 17,557,171 94.71% 2021 2020 18,210,729 728,429 17,482,300 16,827,280 96.25% 519,575 17,346,855 95.26% 2022 2021 18,040,087 721,603 17,318,484 16,771,383 96.84% 444,947 17,216,330 95.43% 2023 2021 19,622,981 784,919 18,838,062 18,319,511 97.25% 500,236 18,819,747 95.91% Source: Miami-Dade County,Florida,Tax Collector. Notes: (1)Florida Law allows up to a 4%discount for timely payment of property taxes. (2)Includes corrections and penalties. 94 City of Aventura, Florida Ratios of Outstanding Debt by Type Last Ten Fiscal Years Business-Type Governmental Activities Activities General Total Percentage Per Fiscal Obligation Revenue Line of Subscription Outstanding Primary of Personal Capita Year Bonds Bonds Leases Credit Liabilities Bonds Government Income(1) (1) 2014 $ 25,540,000 $ $ $ $ $ 25,540,000 1.64% $ 685.42 2015 23,805,000 23,805,000 * 635.26 2016 22,015,000 22,015,000 * 585.33 2017 20,165,000 20,165,000 * 534.97 2018 25,335,000 25,335,000 * 672.12 2019 23,215,000 23,215,000 * 614.32 2020 20,510,000 20,510,000 * 539.30 2021 18,725,000 18,725,000 * 463.82 2022 16,880,000 16,880,000 * 419.46 2023 14,980,000 344,163 41,874 15,366,037 * 381.79 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1)See the Schedule of Demographic and Economic Statistics for personal income and population data. * Information not available. 95 City of Aventura, Florida Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years Less: Ratio Amounts of Net Net Available Assessed Bonded Bonded Gross in Debt Net Value of Debt to Debt Fiscal Bonded Service Bonded Taxable Assessed Per Year Debt Funds Debt Property Value Capita(1) 2014 $ 25,540,000 $ 337,770 $ 25,202,230 $ 7,786,432,398 0.32% $ 676.35 2015 23,805,000 353,377 23,451,623 8,394,311,130 0.28% 625.83 2016 22,015,000 380,498 21,634,502 9,094,962,102 0.24% 575.22 2017 20,165,000 408,361 19,756,639 9,901,694,244 0.20% 524.13 2018 25,335,000 478,742 24,856,258 10,098,997,863 0.25% 659.42 2019 23,215,000 536,587 22,678,413 10,365,840,176 0.22% 600.12 2020 20,510,000 258,892 20,251,108 10,740,186,632 0.19% 532.49 2021 18,725,000 297,898 18,427,102 10,550,216,874 0.17% 456.44 2022 16,880,000 335,118 16,544,882 10,451,356,658 0.16% 411.13 2023 14,980,000 376,327 14,603,673 11,368,391,539 0.13% 362.85 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) See the Schedule of Demographic and Economic Statistics for population data. 96 City of Aventura, Florida Direct and Overlapping Governmental Activity Debt September 30, 2023 Estimated Percentage Applicable Estimated to City of Share of Debt Aventura Overlapping Jurisdiction Outstanding (1) Debt Overlapping debt: Miami-Dade Board of County Commissioners (2) $ 5,016,440,132 2.980% $ 149,489,916 Miami-Dade County School Board (2) 3,120,232,000 2.980% 92,982,914 Subtotal overlapping debt 8,136,672,132 242,472,830 Direct debt: City of Aventura 15,366,037 100.000% 15,366,037 Subtotal direct debt 15,366,037 15,366,037 Total direct and overlapping debt $ 8,152,038,169 $ 257,838,867 Notes: (1) The percentage of the overlap is calculated as follows: Overlapping portion of the government's revenue base (City of Aventura) Total revenue base of the overlapping government (Miami-Dade County) Assessed value of taxable property is the base used in the above calculation. (2) Source: Miami-Dade County & Miami-Dade County Public Schools, Finance Department. 97 City of Aventura,Florida Legal Debt Margin Information Last Ten Fiscal Years 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Debt limit $ 778,643,240 $ 839,431,113 $ 909,496,210 $ 990,169,424 $ 1,009,899,786 $ 1,036,584,018 $ 1,074,018,663 $ 1,055,021,687 $ 1,045,135,666 $ 1,072,293,212 Total net debt applicable to limit - - - - - - - - - - Legal debt margin $ 778,643,240 $ 839,431,113 $ 909,496,210 $ 990,169,424 $ 1,009,899,786 $ 1,036,584,018 $ 1,074,018,663 $ 1,055,021,687 $ 1,045,135,666 $ 1p72,293,212 Total net debt applicable tothe limit as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Legal Debt Margin Calculation for Fiscal Year 2023 Assessed valuation of taxable real and personal property $ 11,368,391,539 Bonded debt limit-10%above(1) $ 1,072,293,212 Amount of debt applicable to debt limit: Total bonded debt $ 14,980,000 Less:debt to be repaid from specified revenue sources: Covenant to budget and appropriate (14,980,000) Total net debt applicable to limit - Legal Debt Margin(1) $ 1,072,293,212 Note: (1)The City Charter allows revenue bondsto be issued when authorized by the City Commission as long as five(5)of the seven(7)Commission members approve the debt.Ad Valorem (general obligation bonds)must be approved by referendum of the electorate.The Charter provides no limit on the amount of the general obligation debt;however,the adopted Capital Improvement Program provides that general obligation bonds shall not exceed 10%of the City's total assessed value. 98 City of Aventura, Florida Demographic and Economic Statistics Last Ten Fiscal Years Personal Income Per Capita (Amounts Personal Unemployment Fiscal Population Expressed in Income Rate Year (1) Thousands) (2) (3) 2014 37,262 $ 1,560,644 $ 41,883 5.4% 2015 37,473 * * 5.8% 2016 37,611 * * 5.5% 2017 37,694 * * 4.3% 2018 37,694 * * 3.4% 2019 37,790 * * 2.5% 2020 38,031 * * 7.0% 2021 40,371 * * 5.3% 2022 40,242 2,268,079 56,361 0.9% 2023 40,247 2,291,664 56,940 1.6% Data sources: (1) Years are as of April 1 of each year per the University of Florida Bureau of Economics & Business Research. (2) Represents income per capita for Miami-Dade County as provided by the U.S. Department of Commerce, Bureau of Economic Analysis. (3) Florida Department of Labor, Bureau of Labor Market Information. * Information not available. 99 City of Aventura, Florida Occupational Employment by Group- Miami-Dade County, Florida Current Year and Nine Years Ago 2023 2014 Percentage Percentage of Total of Total Occupational Groups SOC Code Employees Rank Employment Employees Rank Employment Office and Administrative Support 430000 390,250 1 14.25% 202,270 1 19.89% Sales and Related 410000 296,370 2 10.82% 142,730 2 14.04% Food Preparation and Serving Related 350000 239,990 3 8.76% 98,620 3 9.70% Transportation and Material Moving 530000 239,370 4 8.74% 72,510 4 7.13% Business and Financial Operations 130000 188,570 5 6.89% 56,090 6 5.52% Healthcare Practitioners and Technical 290000 170,310 6 6.22% 63,810 5 6.28% Management 110000 159,360 7 5.82% 34,320 12 3.38% Educational Instruction and Library 250000 111,280 8 4.06% 50,480 7 4.96% Installation,Maintenance,and Repair 490000 106,820 9 3.90% 37,250 10 3.66% Construction and Extraction 470000 101,080 10 3.69% 22,510 15 2.21% Protective Service 330000 90,940 11 3.32% 41,500 8 4.08% Building and Grounds Cleaning and Maintenance 370000 88,030 12 3.21% 35,070 11 3.45% Retail Salesperson 412031 87,340 13 3.19% - - Healthcare Support 310000 82,750 14 3.02% 25,620 14 2.52% Production 510000 76,370 15 2.79% 37,420 9 3.68% Customer Service Representative 434051 66,300 16 2.42% - - Computer and Mathematical 150000 66,300 17 2.42% 16,600 16 1.63% Stockers and Order Fillers 537065 62,220 18 2.27% - - Cashiers 412011 58,450 19 2.13% Office Clerks,General 439061 56,570 20 2.07% - - Personal Care and Service 390000 - - 30,190 13 2.97% Legal 230000 14,640 17 1.44% Arts,Design,Entertainment,Sports and Media 270000 13,750 18 1.35% Community and Social Services 210000 11,660 19 1.15% Architecture and Engineering 170000 - - 9,810 20 0.96% 2,738,670 100.00% 1,016,850 100.00% Total Source: Represents Metropolitan and Nonmetropolitan Area Occupational Employment for the entire Miami,Fort Lauderdale,West Palm Beac,Florida Metropolitan Division as provided by the U.S.Department of Labor,Bureau of Labor Statistics as of May 2022. Estimates do not include self-employed workers. 100 City of Aventura,Florida Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Function: General government 22 22 22 22 22 21 21 23 24 23 Public safety: Sworn 83 83 83 82 85 89 88 92 92 85 Civilians 37 38 39 39 36 37 37 32 36 37 Community services 14 14 14 10 8 16 17 15 18 18 Public works/transportation 11i - - - 6 7 7 7 8 8 8 Community development 8 8 8 8 8 6 6 7 6 7 Total 164 165 166 167 166 176 176 177 184 178 Source: Various City departments. 1i Prior to October 1,2016 this function was previously combined with Community services. 101 City of Aventura,Florida Operating Indicators by Function Last Ten Fiscal Years 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Function: Public safety: Part 1 Crimes reported* 2,210 2,273 2,126 2,091 2,334 2,082 1,638 1,560 1,759 1,827 Arrests 1,937 1,705 1,560 1,232 1,326 1,209 969 991 906 979 Traffic citations 18,690 15,911 19,596 13,343 10,277 8,976 3,939 4,212 6,796 6,832 Parking citations issued 1,498 1,295 618 889 795 1,174 424 817 1,297 1,620 Calls for service 28,682 16,816 15,688 15,248 17,934 16,515 15,730 17,653 19,964 18,968 Accidents 2,134 2,144 2,071 2,162 2,042 1,923 1,414 1,709 1,871 1,775 Community development: Building permits issued 5,244 5,352 4,959 4,560 6,330 5,063 3,273 3,954 5,302 4,693 Building inspections conducted 10,438 12,538 12,055 11,257 14,236 15,803 10,232 11,282 17,673 23,085 Code notice of violations issued 139 146 109 150 119 76 121 153 253 233 City business tax receipts issued 2,383 2,504 2,625 2,438 2,704 819 579 1,933 2,092 2,491 Community services: Recreation center memberships 1,125 1,100 1,132 1,093 1,021 984 795 814 1,324 1,161 Special event attendance 31,715 32,648 35,895 39,587 36,376 35,215 15,962 88,852 39,367 40,307 Shuttle bus ridership 279,943 270,082 274,223 274,532 300,858 300,123 157,060 148,456 139,790 93,172 On-Demand Transportation N/A N/A N/A N/A N/A N/A N/A N/A 62,925 111,964 Charter school enrollment: Aventura City Excellence School(K-8) 1,008 1,020 1,020 1,020 1,020 1,020 1,020 1,032 1032 1,032 Don Soffer Aventura High School(1) - - - - - 200 415 620 620 800 Source:Various City departments. * Part 1 crimes include:homicide,sex offenses,robbery,aggravated assault,burglary,larceny,arson and auto theft. (1) Information is not applicable as the Don Soffer Aventura High School opened in August 2019. N/A: Information not available. 102 City of Aventura,Florida Capital Asset Statistics by Function Last Ten Fiscal Years 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Function: Police Stations 1 1 1 1 1 1 1 1 1 1 Fire stations(1) 2 2 2 2 2 2 2 2 2 2 Parks and recreation: Public recreation areas 6 6 6 7 7 7 7 7 7 7 Public recreation acreage 30.50 30.50 30.50 32.00 32.00 32.00 32.00 32.00 32.00 32.00 Baseball/softball diamonds 2 2 2 2 2 2 2 2 2 2 Soccer/football fields 3 3 3 3 3 3 3 3 3 3 Tennis courts 3 3 3 3 3 3 3 3 3 3 Community recreation centers 1 1 1 1 1 1 1 1 1 1 Arts and Cultural Center 1 1 1 1 1 1 1 1 1 1 Libraries(1) 1 1 1 1 1 1 1 1 1 1 Public works: Streetlights 800 800 824 937 937 937 937 937 937 937 Miles of roads 13.80 13.80 13.80 13.80 13.80 14.00 14.00 14.00 14.00 14.00 Charter schools: Aventura City Excellence School(K-8) 1 1 1 1 1 1 1 1 1 1 Don Soffer Aventura High School N/A N/A N/A N/A N/A 1 1 1 1 1 Transit routes/minibuses(2) Permanent 5 5 5 6 6 6 6 6 6 3 Seasonal 1 On-Demand Transportation N/A N/A N/A N/A N/A N/A N/A N/A 2 8 Notes: (1) Owned and operated by Miami-Dade County,Florida. (2) Operated under contractual agreement. N/A: Information not available. 103 COMPLIANCE SECTION INDEPENDENT AUDITOR'S 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 To the Honorable Mayor and Members of the City Commission City of Aventura, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, 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"), as of and for the year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated March 21, 2024. Our report includes a reference to other auditors who audited the financial statements of the City of Aventura Police Officers' Retirement Plan Pension Trust Fund, as described in our report on the City's financial statements. This report does not include the results of the other auditor's testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. Asignificant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. SOUTH FLORIDA BUSINESS JOURNAL KMCcpa.corn 1 6550 N Federal Hwy,4th Floor, Fort Lauderdale, FL 33308 Phone:954.771.0896 Fax:954.938.9353 v©® Top 25 Accounting Firms I South Florida Business Journal Top 400 Accounting Firms in the U.S.I INSIDE Public Accounting 104 BEST PLACES TO WORK City of Aventura, Florida Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement,we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance.Accordingly, this communication is not suitable for any other purpose. � ma&�o KEEFE McCULLOUGH Fort Lauderdale, Florida March 21, 2024 105 VE Keefe brr(.77% �' McCullough CPAs +Trusted Advisors INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the Honorable Mayor and Members of the City Commission City of Aventura, Florida Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the City of Aventura, Florida's (the "City") compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the year ended September 30, 2023. The City's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2023. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City's compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City's federal programs. SOUTH FLORIDA BUSINESS JOURNAL KMCcpa.com 1 6550 N Federal Hwy,4th Floor, Fort Lauderdale, FL 33308 Phone:954.771.0896 Fax:954.938.9353 v©® Top 25 Accounting Firms I South Florida Business Journal Top 400 Accounting Firms in the U.S.I INSIDE Public Accounting 106 BEST PLACES TO WORK City of Aventura, Florida Auditor's Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City's compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the City's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or 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 a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. 107 City of Aventura, Florida Our consideration of internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. �/,U#-WuQ,Qa4 KEEFE McCULLOUGH Fort Lauderdale, Florida March 21, 2024 108 LD Ql 00 Il -i c-I M M M Ql Ql Ql LD N c-I 7 Lr� LD lD M 00 I- Ql N N Ln Ql N N 1:3- Ln '♦3 N 00 � lD lD G7 CL x LU L cD 0 O E N 7 Z O O C c-I -j lD N Q1 m Ql Ql -i ML M M O Ln N Q c-I c-I Ln 00 co J J mLL LL y I co C O co U N N O d Ln U QJ C O N N N N M Ln LD 0l 0l O O LQ Ln LD LD LD -1 n O •� J c-I c-I c-I N 00 Q1 c-I Q N Ol Q X N 4- 0 N D N U O 4- c c Ln N E E O d d I_- OD n on N C C C N d m cc m L/) — LL O O a� fC t�i i m N E y > a, y m a 0 �° oU LL t d L� N on 0) . U Ln 0) y i OL E O L E L O co 0 d LJJ fB a+ C W U c w m , a E d G7 i O U O n d u y p dcc LL 0) a " 0 E c � CLO LL m O L aJ O O L 0 O C E L ccccO C a m _ Q a a J {� W L L •� U W •� fC G1 ++ L C L ao a �+ Q O a O 0 L UCL d Y Y 'a 3 Q 0) cc CL m CL '♦3 '♦3 G1 'a G1 'a J 'a 0 N L E tiO 0) tiO 11 M �+ + L C O } W O L �+ O a �+ O U O d w •L LL +�' w — O -M Ii E M C o a o a o x y Q m 0) E 0 V E L Lon Lon 0) Lon 0) Lon. V w 3 x W d m O aJ d cso aJ 7 y 7 7 7 ; — m *' W i d on a on > *' d ° d o O j G1 0) f6 a v m a ~ o m ~ _0 + ~ � + ~ M 3 Q y m La Q y La vOi U l% vOi = vOi U CA 0 G7 41 vip a via �= a a �= y c c c U (A LL 0 Li City of Aventura, Florida Notes to Schedule of Expenditures of Federal Awards September 30, 2023 Note 1- Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards(the "Schedule") includes the federal grant activity of the City of Aventura, Florida (the "City"). The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City. Note 2- Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, as well as other applicable provisions of contracts and grant agreements, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Note 3- Indirect Cost Rate The City elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Note 4- Contingency The grant and contract revenue received is subject to audit and adjustment. If any expenditures or expenses are disallowed by the grantor agencies as a result of such an audit, any claim for reimbursement to the grantor/contract agencies would become a liability of the City. In the opinion of management,all grant and contract expenditures are in compliance with the terms and conditions of the agreements and applicable federal/state laws and other applicable regulations. 110 City of Aventura, Florida Schedule of Findings and Questioned Costs For the Year Ended September 30, 2023 SECTION I - SUMMARY OF AUDITOR'S RESULTS Financial Statements Type of auditor's report issued: Unmodified Opinion Internal control over financial reporting: Material weakness(es) identified? yes X no Significant deficiency(ies) identified? yes X none reported Noncompliance material to financial statements noted? yes X no Federal Awards Internal control over major federal programs: Material weakness(es) identified? yes X no Significant deficiency(ies) identified? yes X none reported Type of auditor's report issued on compliance for major federal programs: Unmodified Opinion Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? yes X no Identification of major federal program: CFDA No. Federal Program or Cluster 21.027 U.S. Department of the Treasury Coronavirus State and Local Fiscal Recovery Funds Dollar threshold used to distinguish between Type A and Type B programs: $ 750,000 Auditee qualified as low-risk auditee? X yes no SECTION II - FINANCIAL STATEMENT FINDINGS None Reported. SECTION III - FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS None Reported. SECTION IV- PRIOR YEAR AUDIT FINDINGS None Reported. 111 VE Keefe brr(.77% �' McCullough CPAs +Trusted Advisors MANAGEMENT LETTER IN ACCORDANCE WITH THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA To the Honorable Mayor and Members of the City Commission City of Aventura, Florida Report on the Financial Statements We have audited the basic financial statements of City of Aventura, Florida (the "City"), as of and for the fiscal year ended September 30, 2023, and have issued our report thereon dated March 21, 2024. Auditor's Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards(Uniform Guidance); and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards, Independent Auditor's Report on Compliance for Each Major Federal Program and on Internal Control over Compliance Required by the Uniform Guidance; Schedule of Findings and Questioned Costs; and Independent Accountant's Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated March 21, 2024, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General,requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings or recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. This information is disclosed in the notes to the financial statements, Note 1. SOUTH FLORIDA BUSINESS JOURNAL KMGcpa.com i 600u N reaeral HWy,4tn rloor, tort L_auaeraate, rL_33308 Phone:954.771.0896 Fax:954.938.9353 v� Top 25 Accounting Firms I South Florida Business Journal Top 400 Accounting Firms in the U.S.I INSIDE Public Accounting 112 BEST PLACES TO WORK City of Aventura, Florida Financial Condition and Management Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether or not the City has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific conditions) met. In connection with our audit, we determined that the City did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for the City. It is management's responsibility to monitor the City's financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives,the Florida Auditor General,Federal and other granting agencies, Members of the City Commission, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. � -W&ts� KEEFE McCULLOUGH Fort Lauderdale, Florida March 21, 2024 113 INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES To the Honorable Mayor and Members of the City Commission City of Aventura, Florida We have examined the City of Aventura, Florida, (the "City") compliance with the requirements of Section 218.415 Florida Statutes, Local Government Investment Policies, during the year ended September 30, 2023. Management is responsible for the City's compliance with the specified requirements. Our responsibility is to express an opinion on the City's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the City complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the City complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the City's compliance with specified requirements. In our opinion, the City complied, in all material respects,with the aforementioned requirements for the year ended September 30, 2023. This report is intended solely for the information and use of management, Members of the City Commission, and the State of Florida Auditor General and is not intended to be and should not be used by anyone other than these specified parties. 1/,4 mats� KEEFE McCULLOUGH Fort Lauderdale, Florida March 21, 2024 SOUTH FLORIDA BUSINESS JOURNAL KMCcpa.com 1 6550 N Federal Hwy,4th Floor, Fort Lauderdale, FL 33308 Phone:954.771.0896 Fax:954.938.9353 v©® Top 25 Accounting Firms I South Florida Business Journal Top 400 Accounting Firms in the U.S.I INSIDE Public Accounting 114 BEST PLACES TO WORK �f99s , gti��v � FLU 19200 West Country Club Drive Aventura, Florida 33180 Phone: 305-466-8920 Fax: 305-466-8939 cityofaventura.com CITY OF "ENTURA OFFICE OF THE CITY ATTORNEY MEMORANDUM TO: City Commission FROM: Ronald J. Wasson, City Manager BYE Robert Meyers, Office of the City Attorney DATE: March 29, 2024 SUBJECT: Ordinance Amending the City Code of Ordinances to Create Section 1-22 to Make it Unlawful to Urinate or Defecate in Plain View in Public Places April 2, 2024 City Commission Meeting Agenda (First Reading) May 7, 2024 City Commission Meeting Agenda (Second Reading) RECOMMENDATION It is recommended that the City Commission approve an ordinance to prohibit urination or defecation in plain view of the public, because such public acts present a public health risk due to the spread of diseases and other health hazards stemming from such waste. BACKGROUND Urination or defecation in a public place in plain view presents a serious threat to the public health, safety and welfare of the community, contributing to such ill effects as vandalism, disease transmission, and litter and is also irreparable and irreversible. The Florida Statutes do not prohibit the act of public urination or defecation per se, unless such acts are charged under the indecent exposure statute, ordinarily considered lewd and lascivious acts. However, a number of municipalities across the State have enacted ordinances prohibiting public urination or defecation without having to prove indecent exposure. The proposed ordinance is fashioned from the City of Miami Beach Ordinance (in effect since 1995) identifying public places where such acts are banned if committed in plain view of the public. A violation of this ordinance constitutes a public nuisance and upon a City of Aventura police officer establishing probable cause of such violation they are authorized to take enforcement action, as outlined in section 1-14 of the City Code. Fiscal Impact There may be a minor effect on the budget of those departments enforcing the ordinance, requiring some resources to be spent in furtherance of enforcing this ordinance. CITY OF AVENTURA ORDINANCE NO. 2024- AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, AMENDING CHAPTER 1 "GENERAL PROVISIONS," OF THE CITY OF AVENTURA CODE OF ORDINANCES TO CREATE SECTION 1-22 "URINATING OR DEFECATING IN PLAIN VIEW IN PUBLIC PLACES PROHIBITED"; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; PROVIDING FOR INCLUSION IN THE CODE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, as provided in Section 2(b), Article Vlll of the Constitution of the State of Florida, and Section 166.021(1), Florida Statutes, the City of Aventura, Florida (the "City"), a municipal corporation, enjoys all governmental, corporate, and proprietary powers necessary to conduct municipal government, perform municipal functions, and render municipal services, and may exercise any power for municipal purposes, except as expressly prohibited by law; and WHEREAS Article Vlll, Section 2 of the Florida Constitution, and Chapter 166, Florida Statutes, provides municipalities with the authority to exercise any power for municipal purposes, except where prohibited by law, and to adopt ordinances in furtherance of such authority; and WHEREAS, the City Charter empowers the City Commission to adopt, amend or repeal its ordinances and resolutions as may be required for the benefit of the residents of the City; and WHEREAS, the City Commission finds it periodically necessary to amend its Code of Ordinances and Land Development Regulations ("Code") in order to update regulations and procedures necessary to implement municipal goals and objectives; and WHEREAS, the City Commission further finds it to be in the best interest of the public health, safety and welfare of the citizens to adopt this Ordinance amending the City's Code. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA: Section 1. Recitals. That the above stated recitals are hereby adopted and confirmed. City of Aventura Ordinance No. 2024- Section 2. City Code Amended. That Chapter 1 "General Provisions," of the City Code of Ordinances is hereby amended to read as follows:' Sec. 1-22. Urinating or defecating in plain view in public places prohibited. (a) It shall be unlawful for any person to intentionally urinate or defecate in plain view of the public on any public sidewalk, street, alley, park, or other public property in the City. For purposes of this section "in plain view of the public" shall mean where such act may be readily observed by a member of the public. This section shall not apply to urinating or defecating in any restroom facility in a manner for which that facility was designed. Section 3. Conflicts. That all Sections or parts of Sections of the Code of Ordinances, all ordinances or parts of ordinances, and all Resolutions, or parts of Resolutions, in conflict with the Ordinance are repealed to the extent of such conflict. Section 4. Severability. That 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. Section 5. Inclusion in the Code. That it is the intention of the City Commission, and it is hereby ordained that the provisions of this Ordinance shall become and be made a part of the Code of the City of Aventura; that the sections of this Ordinance may be renumbered or re-lettered to accomplish such intentions; and that the word "Ordinance" shall be changed to "Section" or other appropriate word. Section 6. 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. This motion was seconded by Commissioner and upon being put to a vote, the vote was as follows: Page 2 of 3 City of Aventura Ordinance No. 2024- Commissioner Amit Bloom Commissioner Rachel S. Friedland Commissioner Billy Joel Commissioner Dr. Linda Marks Commissioner Michael Stern Vice Mayor Paul A. Kruss Mayor Howard S. Weinberg 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 Amit Bloom Commissioner Rachel S. Friedland Commissioner Billy Joel Commissioner Dr. Linda Marks Commissioner Michael Stern Vice Mayor Paul A. Kruss Mayor Howard S. Weinberg PASSED on first reading this 2nd day of April, 2024 PASSED AND ADOPTED on second reading this 7t" day of May, 2024 HOWARD S. WEINBERG, ESQ. MAYOR ATTEST: ELLISA L. HORVATH, MMC CITY CLERK APPROVED AS TO LEGAL SUFFICIENCY: ROBERT MEYERS CITY ATTORNEY WEISS SEROTA HELFMAN COLE + BIERMAN, P.L. Page 3 of 3 CITY OF AVENTURA FINANCE DEPARTMENT MEMORANDUM TO: City Commission FROM: Ronald J. Wasson, City Manager BY: Melissa Cruz, Finance Director �AL DATE: March 1 , 2024 (Memo Revised March 4, 2024) SUBJECT: Budget Amendment Ordinance — FY 2023/24 March 5, 2024 City Commission Meeting Agenda (First Reading) April 2, 2024 City Commission Meeting Agenda (Second Reading) RECOMMENDATION It is recommended that the City Commission approve the attached ordinance amending the FY 2023/24 budget. BACKGROUND This mid-year budget amendment addresses "Other Items" that were not considered in the originally adopted FY 2023/24 Budget that need to be done through a corresponding budget amendment that will provide the necessary funding. Some of these items may have been previously discussed with the Commission but now require formal action. For simplicity, the following narrative addresses all of the items discussed above in "Fund/Account Number sequence" in terms of how they appear on the adjacent FY 2023/24 Budget Amendments Schedule ("Exhibit A"). General Fund — (001) — ($389,376 net increase) Office of the City Manager (0501) ($193,030 increase) 1201/2101/2401 — Employee Salaries/FICA/Workers' Compensation requires a $29,670 budget amendment due to the addition of a Part-time Multimedia Specialist that was not included in the originally adopted budget. 4420 — Leased Equipment requires a $23,360 budget amendment for the rental of two (2) beds at Camillus House for the year that was not included in the originally adopted budget. 1 8301 — Other Grants and Aides requires a $140,000 budget amendment for the purchase of an Ambulance for Israel which was not included in the originally adopted budget. This purchase was approved by the City Commission at the City Commission meeting on November 7, 2023. The above expenditures will be covered by revenues from account 3611000 — Interest Earnings. Finance (1001) ($10,000 increase) 3190 — Professional Services requires a $10,000 budget amendment for a cost allocation study that was not included in the originally adopted budget. The purpose of this study was to calculate City-wide allocations for expenditures throughout departments and funds. The above expenditure will be covered by revenues from account 3611000 — Interest Earnings. Police (2001) ($9,225 increase) 4610 — R&M - Vehicles requires a $9,225 budget amendment as this account is anticipated to use more than what was estimated in the originally adopted budget. This increase is covered by the BATT sale revenue in line item 3644200 — Sale of Assets. Public Works/Transportation (5401) — ($90 increase) 4420 — Leased Equipment requires a ($9,222) budget amendment due to the movement of the expenditures to the below account 7130/7230 — Principal Payments/Interest Payments accounts as required by GASB 87. 7130/7230 — Principal Payments/Interest Payments requires a $9,312 budget amendment, respectively as required by GASB 87. The expenditure was originally budgeted in line item 4420 - Leased Equipment as described above. The above net amount of the expenditures will be covered by revenues from account 3611000 — Interest Earnings. Capital (80xx) — ($177,031 increase) Office of the City Manager (8005-512-6402 & 6410) — ($10,500 increase) — as detailed below due to the purchases of furniture and 2 laptops for the additional personnel in the Communications division that was not included in the originally adopted budget. 2 • 6402 — Computer Equipment — ($8,500 increase) • 6410 — Office Equipment — ($2,000 increase) The above expenditure will be covered by revenues from account 3611000 — Interest Earnings. Police Department (8020-521-6410 & 6450)— ($110,775 increase) as outlined below due to the additional vehicles and corresponding outfitting. This increase is covered by the BATT sale revenue in line item 3644200 — Sale of Assets. • 6410 - Equipment >$5,000 — ($90,275 increase) • 6450 — Vehicles — ($20,500 increase) Public Works/Transportation (8054-541-6450) — ($55,756 increase) due to the purchase of a 2024 Chevy Tahoe that was not included in the originally adopted budget. This purchase replaces a City vehicle which was totaled in accident and approved by City Commission at the City Commission Special Meeting on February 20, 2024. This cost will be covered in part by revenue which the City will receive from the City's insurance company and recorded in account 3699000 — Miscellaneous Revenue. The remainder will be funded from account 3611000 — Interest Earnings. If you should have any questions related to this memorandum, please feel free to contact the City Manager. 3 CITY OF AVENTURA ORDINANCE NO. 2024- AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, AMENDING ORDINANCE NO. 2023-17 WHICH ORDINANCE ADOPTED A BUDGET FOR THE 2023/2024 FISCAL YEAR BY REVISING THE 2023/2024 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; AND 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 2023/2024 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. That the recitals contained in the preamble to this Ordinance are incorporated by reference herein. Section 2. That the City Commission hereby authorizes the amendment of Ordinance No. 2023-17, which Ordinance adopted a budget for the 2023/2024 fiscal year, by revising the 2023/2024 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. That the City Manager is hereby authorized to do all things necessary to carry out the aims of this Ordinance. City of Aventura Ordinance No. 2024- Section 4. Effective Date. That this Ordinance shall be effective immediately upon adoption on second reading and shall be applicable retroactively from and after October 1, 2023. The foregoing Ordinance was offered by Commissioner Bloom, who moved its adoption on first reading. This motion was seconded by Vice Mayor Kruss, and upon being put to a vote, the vote was as follows: Commissioner Amit Bloom Yes Commissioner Rachel S. Friedland Yes Commissioner Billy Joel Yes Commissioner Dr. Linda Marks Yes Commissioner Michael Stern Yes Vice Mayor Paul A. Kruss Yes Mayor Howard S. Weinberg 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 Amit Bloom Commissioner Rachel S. Friedland Commissioner Billy Joel Commissioner Dr. Linda Marks Commissioner Michael Stern Vice Mayor Paul A. Kruss Mayor Howard S. Weinberg Page 2 of 3 City of Aventura Ordinance No. 2024- PASSED on first reading this 5t" day of March, 2024. PASSED AND ADOPTED on second reading this 2nd day of April, 2024. HOWARD S. WEINBERG, ESQ. MAYOR ATTEST: ELLISA L. HORVATH, MMC CITY CLERK APPROVED AS TO LEGAL SUFFICIENCY: ROBERT MEYERS CITY ATTORNEY WEISS SEROTA HELFMAN COLE + BIERMAN, P.L. Page 3 of 3 City of Aventura Budget Amendment Fiscal Year2023/24 Exhibit A Amended Amended Budget Budget Budget Object Code Category FY2023/24 Amendment FY2023/24 General Fund-00 Revenues Miscellaneous Revenues 3611000 Interest Earnings $ 500,000 $ 263,754 $ 763,754 3644200 Sale of Assets 10,000 120,000 130,000 3699000 Miscellaneous Revenues 30,000 5,622 35,622 Subtotal $ 540,000 $ 389,376 $ 929,376 Total General Fund Revenues $ 540,000 $ 389,376 $ 929,376 General Fund-00 Expenditures Office of the City Manager(0501) Personal Services 1201 Employee Salaries $ 681,921 $ 27,500 $ 709,421 2101 FICA 52,167 2,105 54,272 2401 Workers'Compensation 1,575 65 1,640 Subtotal $ 735,663 $ 29,670 $ 765,333 Other Charges&Services 4420 Leased Equipment $ 8,700 $ 23,360 $ 32,060 Subtotal $ 8,700 $ 23,360 $ 32,060 Grants&Aides 8301 Other Grants and Aides $ - $ 140,000 $ 140,000 Subtotal $ - $ 140,000 $ 140,000 Total Office of the City Manager $ 744,363 $ 193,030 $ 937,393 Finance(1001) Contractual Services 3190 Professional Services $ 4,200 $ 10,000 14,200 Total Finance $ 4,200 $ 10,000 $ 14,200 Amended Amended Budget Budget Budget Object Code Category FY2023/24 Amendment FY2023/24 Police(2001) Other Charges&Services 4610 R&M-Vehicles $ 300,000 $ 9,225 309,225 Total Police $ 300,000 $ 9,225 $ 309,225 Public Works/Transportation(5401) Other Charges&Services 4420 Leased Equipment $ 9,222 $ (9,222) $ - Subtotal $ 9,222 $ (9,222) $ - Debt Service 7130 Principal Payments $ - $ 8,483 $ 8,483 7230 Interest Payments - 829 829 Subtotal $ - $ 9,312 $ 9,312 Total Public Works/Transportation $ 9,222 $ 90 $ 9,312 Capital Outlay Office of the City Manager(8005-512) 6402 Computer Equipment<$5,000 $ 4,300 $ 8,500 $ 12,800 6410 Office Equipment - 2,000 2,000 Subtotal $ 4,300 $ 10,500 $ 14,800 Police(8020-521) 6410 Equipment>$5,000 $ 155,725 90,275 $ 246,000 6450 Vehicles 418,500 20,500 439,000 Subtotal $ 574,225 $ 110,775 $ 685,000 Public Works/Transportation(8054-541) 6450 Vehicles $ - $ 55,756 $ 55,756 - Subtotal $ - $ 55,756 $ 55,756 - Total Capital Outlay $ 578,525 $ 177,031 $ 755,556 Total General Fund Expenditures $ 1,636,310 $ 389,376 $ 2,025,686