Y

a Hu
COMMITTEE OF THE WHOLE MEETING

Thursday June 7 2001 5 30 p m

AGENDA

COMMITTEE OF THE WHOLE ITEMS

Presentation by Curtis Gray Homestead Miami Speedway

2

Update from Merrett Stierheim and the Financial Team

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 2471801
ext 160 no later than two days prior to such proceeding Anyone wishing to appeal any decision made by the City of Homestead City Council with respect to any matter considered at such meeting or hearing will need a record of the proceedings and for such purpose may need to ensure that a verbatim record of the proceedings is made which record includes the testimony and evidence upon which the appeal is to be based Agenda items may be viewed at the Office of the City Clerk City of Homestead 790 N Homestead Blvd Homestead FL 33030 Anyone wishing to obtain a copy of any agenda item should contact the City Clerk at 2471801 ext 160

In accordance with Code Section 2591 any Lobbyists must register with the City Clerk s office before addressing the Council on any of the above items

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CITY of HOMESTEAD
Outline of Financial Concerns
EXHIBITS

Presented by
R Stierheim M
Review Team

June 7 2001

HOMESTEAD RECOVERY TEAM

TEAM MEMBERS

Mayor Roscoe Warren City of Homestead Manager Curt Ivy City of Homestead Manager Merrett Stierheim Town of Miami Lakes
Judith Cannon Project Coordinator

Assurant Group

Ed Harper Ex V P Art Heggen Ex V P Manny Gutierrez Sr V P

Larry Adams retired V P FP L Ed Marquez Sr V P First Southwest Company Gary Dellapa Budget Specialist Consultant Michael Levinson City Manager Coral Springs Danny Lipe Ex V P Community Bank
Bill Losner Pres CEO Ist Nat l Bank of Homestead

City of Homestead
Dottie Zaharaho City Finance Consultant

Marleen Volkert Assistant Manager

Annette Lewis Finance Director

Laurie Houghton Accountant Finance Department

Jim Swartz Utilities Director

Jerry Chiocca External City Auditor Rachlin Cohen

Dick Montalbano Sr V P William R Hough
MiamiDade County
Co

Holtz

financial advisor to City

Bill Johnson Senior Advisor to County Manager Kevin Lynskey Asst Dir Office of Performance Improvement
Diane Camacho Asst Dir Finance and Admin Seaport Dept

Miriam Abreu Chief Accountant Finance Aviation Dept Particia Prochnicki Audit Supervisor Audit and Management Dept Willis Patterson Asst Controller Finance Dept

Ryder Group and Baptist Health Systems have offered to help in the appropriate way at the
appropriate time when needed

Fiscal Year 9697 Audit Report

Pages
24

73

qb

ta FN
City of Homestead Florida
NOTES TO FINANCIAL STATEMENTS

j 4 4 4 f 1 1 4 4 d s s ti r
It

September 30 1997

CON17D A 000 0

OFF

NOTE 4 DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS Continued

D Interjund Receivables and Payables

Individual interfund receivable and payable balances including restricted at September 30

1997 are as follows in thousands
Due from
Other Funds
Due to Other Funds Advances

General Fund

571 3

711 4

Special Revenue Funds

Homestead Economic and

Rebuilding Organization
Community Development
Block Grano

34

890

072 1
783 108 782 6

Economic Development Grants Home Program Grant Other State and Local Grants Second Dollar Law Enforcement

262

651
600 1

Confiscated Property Law

Enforcement

Motorsports Complex
Stadium Debt Service Funds Downtown

15 215

707

44

utility tax Tax Increment Financing Hero

71 I

Capital Projects Funds

Downtown

82
101

utility tax
Parks and Recreation

Capital Improvement Dade County Gas Tax

857

747

I47

Enterprise Funds
water and Sewer Electric
Stormwater

3279

26

342 4
244

048 3

Intemal Service Funds

Health SelfInsurance Other Self Insurance

388 379

Trust and Agency Funds General Employees Pension City Payroll

Total
S

124 175

IO2

888 14

14 88

936 10

93 10

4 Ir I

The Rules of the Auditor General Sectionif not 554 0 f 1 9m 8 7 requi in the reports on already 6 addressed there a disclosure management letter ot t e tollowing matters the internal control structure or compliance There were recommendati onsnoto im rove financial tre were
tro re wer

affect the financ mana ement acco ntinfl procedure and intern nomaterially rules and regulations which may or may or may arP were ille t al or i rover expenditurewhtch may materially affect the financialsstatements
al statements
nr F
I

olations of laws

Mn

inn

rantrtrea

were

tmpruper

varn failures t

See the accompanying Schedule of Findings acc mpanying Other Comments and Observations
auditor

transactions or other inac

ities sh s e ortag

or oeratcauvna an

ue

one

osts

an

f f 1 1 S S
S t y 4 y

The Rules ofthe Auditor General Section 10 10 also require that the name or official f 1 554 title and legal authority for the primary government and each component unit of the reporting 312nLaws
entity be disclosed in the management statements The City of Homestead Florida
of Florida
letter sed

Community Redevelopment Agency of Homestead Homestead Economic and Rebuilding

ntto Chapter t disci in The City of Homestead Florida included the following component unit
5

cial

Organization which was created pursuant to Ordinance 9406 51 of the City of Homestead
Florida

This management letter is intended solely for the information ofthe City ofHomestead Florida and management and the State ofFlorida Office ofthe Auditor General However this report is
a matter of public record and its distribution is not limited

Miami Florida

April 15 1998

S
in

1Q

73

Fiscal Year 9798 Audit

Pages
2

72 and 73

82 and 83

ffud cTo R s
City of Homestead Florida

urre i

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

Year Ended September 30 1998

Section I Summary of Anditor a Results

Financial Statem

Type of report issued on the basic financial statements

Internal control over financial reporting
Material weakness identified

ualified Q

Yes

i j

portable con coons identified that are not considered

be material weaknesses

Noncompliance material to financial statements noted

Federal Awards

Internal control over major programs

Material weakness identified

eportable conditions identified that are not considered

to be material weaknesses

Type of auditor s report issued on compliance for major programs

Qualified

Any audit adisclosed that are u dm fn

to be reported in
Yes

accordance with section 510 a of Cucular

72

City of Homestead Florida SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended September 30 1998 CONTINUED

Section I Summary of Auditor s Results Continued

Federal Awards

Continued

Identification of major programs

CFDA Numbers
307 11

Name of Federal Program

U Department of Commerce 8r Economic Development S Administration Economic Development Revolving Loan

Grant

219 14

S Department of Housing and Urban Development U

Community Development Block Grant U Department of Housing and Urban Development S Home Improvement Partnership S Department of Justice Fines and Forfeitures U

239 14

000 16

Dollar threshold used to distinguish between Type A and Type B programs

itee

000 300
C

as quali

risk auditee7

hxA s1r

No

Section Il Financial Statement Findings

971 Grants

Significant Federal State and Local Grants were received by the City in the current year
Internal controls were inadequate to ensure the proper recording and reporting of the

expen rtures an receipts of ese grants Cash mana ement and reportin internal control and
coin Rance reqrem uien
not Adequately monitor ersonne assigned to perform this function dr not have familiarity with grant documents and re uirements and were not properly

monitor these personne orre e supervised Th was not appropnate ma e na a nt overs the extensive tunwv onnel hissituation was a avat rests tin re rtin experienced by time City Reporting was inaccurate not performed timely an m som cases not performed at all Si ifi ant an activity was either unrecorded or recorded incorrectly Grant
activity rennrtelt to the federal government did not agree to the general ledger a rvity or

supporting documentation
through 985

See related grant findings below items 972 97 6 977 98 1

73

We were unable to agree federal and state grant activity reported to granting agencies to the
special revenue fund general ledger accounts and the federal and state financial assistance
ended September 30 1998 Sufficient documentation was not available and we were unable to

schedules as outlined in the accompanying schedule of findings and questioned costs for the year
t

satisfy ourselves through the application of alternative procedures that the grant activity and related receivables were properly accounted for and reported in the four special revenue grant
funds the Community Development Block Grant Special Revenue Fund the Economic

Development Grants Special Revenue Fund the Home Program Special Revenue Fund and the
Other State and Local Grants Special Revenue Fund

The Stadium Special Revenue Fund an the Motorsports Special Revenue Fund had d eficit fund

Zr

ances of 1 6 and 32 262 respectively at September 30 1998 T Gene 9 ral Fund

and th e Electr Enterprise Fund reflect receivables from th ese funds of 2 65304J and 932 4 9 93 respe Because of the deficit fund balances and continued insufficiency of
revenues fund appropriations or other definitive funding plans m our opinion t hese interfund
receivables should be reflected as equity transfers to those fiords i order to confo wit
w aan r Fky u al

11 6 1 41 I

llr i lilt LFLCb

In our opinion based on our audit and the report of other auditors excep for the effects of sucli
adjustments if any as might have been determined to be necessary
e e acts o not recording
we be able to examine
b evidence regarding the matters matt descried in the third and fourth paragrafis above an

a to rum and Motorsports Special Revenue Fund irate

xcep un

for

loans

as equity transfers described in the fifth paragraph above the general purpose financial statements referred to above present fairly in all material respects the financial position of the City of Homestead Florida as of September 30 1998 and the results of its operations and the cash flows of its proprietary fund types for the year then ended in conformity with generally
accepted accounting principles

In accordance with Government Auditing Standards we have also issued a report dated
December 23 1999 on our consideration of the City of Homestead Florida s internal control

over financial reporting and our tests of its compliance with certain provisions of laws
regulations contracts and grants Instances of reportable conditions in internal control as well as instances of noncompliance were reported

Our audit was performed for the purpose of forming an opinion on the generalpurpose financial statements of the City of Homestead Florida taken as a whole The combining and individual fined financial statements are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Homestead Florida Such information except for the information in the third and fourth paragraphs above has been subjected to the auditing procedures applied in the audit of the generalpurpose financial statements and in our opinion based on our audit and the report of other auditors except for the
effects on the general fund special revenue funds and enterprise funds of the matters described

in the third through fifth paragraphs is fairly presented in all material respects in relation to the
generalpurpose financial statements as a whole

I
2

ntants u Acco

Manor

The US Member Finn of Grant Thornton International

s b
J h
20

23

Grant Thornton T
MW THORWON ur

S AjcYet 6voks Closed

MANAGEMENT LETTER REQUIRED BY SECTION 10 e OF THE RULES OF THE 554

AUDITOR GENERAL OF THE STATE OF FLORIDA

177YV

Honorable Mayor and Members of Commission City of Homestead Florida

p Wvr
3

We have audited the financial statements of the City of Homestead Florida as of and for the

fiscal year ended September 30 1998 and have issued our report thereon dated December 23
1999

We have issued our Independent Auditor s Report on Compliance and Internal Control Over

Financial Reporting dated December 23 1999 Disclosures in those reports if any should be
considered in conjunction with this management letter

We conducted our audit in accordance with generally accepted auditing standards and
Government Auditing Standards issued by the Comptroller General of the United States

Additionally our audit was conducted in accordance with the provisions of Chapter 10 550 Rules

of the Auditor General which govern the conduct of local governmental entity audits performed
in the State of Florida and require that certain items be addressed in this letter

The Rules of the Auditor General Section 10 554 1 l require that we comment as to e whether or not irregularities reported in the preceding annual financial audit report have been

corrected There were no irregularities disclosed in the preceding annual financial audit report
The Rules of the Auditor General Section 10 554 1 2 re uire that we comment as to e whether or not recommendations made in the preceding annual financial audit report have been
followed Most of the recommendations made in the nrecediniz annual not been in
the

Part I comments adequately addressed during 1998

svrte 1200

777 idea Avnue

Wwri FL 33131 2867

Tel 305 377 9900 Fm 305 377 9130

82

As required by the Rules of the Auditor General Section 10 3 the scope of our audit e 1 554
included a review of the provisions of Section 218 1 Florida Statutes Determination of 503 Financial Emergency The City s Stadium and Motorsports Special Revenue Funds have

reported an unreserv and total fund de icit f f or tw o consecutive years and as suc
anci emergen as de fined m on a tatute 218 503 1 d The Stadium and Motorsports Speci T n e Rev u nds ue had an unreservedmound deficit at 1 of 6 1 034 99 and 9262328 an a eptember 30 1997 of September 3
were tecTimcal1In a 3111TE

f and 9 308 respectively In addition The City s Health and Other Self
Insura Mr tft l

ceFuns nave reported a unreserved and total retained earnings deficit

for two consecutive years As such these funds were technically in a state of financial and
Internal Service Funds had an unreserved retained earnings deficit at Sept 30

emergency as defined in Florida Statute 218 503 1 d The Heal Other Self Insurance

Fund the Health Self Insurance Internal Service Fund and the Other Self Insurance Internal Service Fund was technically in a state of finan cial emergenc the deficits did not result in a
failure for the City to meet current o0liZations including scheduled ongterm ebt principal and

The Rules of the Auditor General Section 10 4 require that we termined e 1 554 de that the efl Florida fo VSCaIeat ended annualf nama rennR tor t e eto S cUon wn 1998 a Department of Banking and Finance pursuant Septem orida Fl lutes and is in agreement with the annual financial audit report Howev
rt was not coin leted or available for our review and we therefore were not annual financial r 1998 able to seise it to the audit report or the fiscal Year en Septe

The Rules of the Auditor General Section 10 9 require disclosure in the 8 7 6 e 1 554

management letter of the following matters if not already addressed in the auditor s reports on the internal control structure or compliance There were recommendations to improve financial management accounting procedures and internal controls there were no violations of laws rules and regulations which may or may not materially affect the financial statements there were
illegal or im

ditures which may materially affect the financial statements there 7ere
scoverea by the auditor i

improper or jnMequate accounting procedures e g the omission of requtred isc osures from
e financial statements there were failures to properly record financi
or o tner

macquractess i r ss tages Sid

See the

accompanying Schedule ofFindings an Questioned

Comments and Observations

osts and the accompanying Other

The Rules ofthe Auditor General Section 10 10 also require that the name or official e 1 554

title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the management letter unless disclosed in the notes to the financial statements The City of Homestead Florida was established pursuant to Chapter 25312 Laws of Florida The City of Homestead Florida included the following component unit Community Redevelopment Agency of Homestead Homestead Economic and Rebuilding Organization which was created pursuant to Ordinance 9406 51 of the City of Homestead
Florida

Fiscal Year 98 99 Audit

Pages 68 and 69
70 and 71 77 and 78 19 and 20

Rachlin Cohen
Certified Public Accountants

Holtz I P 1
Consultants

fS

Ao Ind

Report of Independent Certified Public Accountants on Compliance and on

Internal Control over Financial Reporting Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards

Honorable Mayor City Council and City Manager City of Homestead Florida

We have audited the general purpose financial statements of the City of Homestead Florida the City as

of September 30 1999 and for the year then ended and have issued our report dated September 27 2000
We conducted our audit in accordance with generally accepted auditing standards and the standards
General of the United States
Compliance

applicable to financial audits contained in Government Auditing Standards issued by the Comptroller

As part of obtaining reasonable assurance about whether the City s financial statements are free of
material misstatement we performed tests of its compliance with certain provisions of laws regulations

contracts and grants non compliance with which could have a direct and material effect on the
determination of financial statement amounts However providing an opinion on compliance with those

provisions was not an 4 objective of our audit and accordingly we do not express such an opinion e Ai c A re neta of nnn i emmnliance that are required to be repo under

internal Control over Financial Reporting

In planning and performing our audit we considered the City s internal control over financial reporting in
noted certain matters involving the internal control over financial re rtin and i o
consi er to Be reportable con iti

order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting However we s thaw
relating roMigniticant a iciencies in the desi

erport iinancMTata consistent wit a arse tons or management in the fina statements ReportaT e con itions are clescriDea in a accompanying schedule of findings and questioned costs as items 9
972 998 999 99 12 9913 99 11 10 15 and 9916 14

that

our m omen r n

operation of the internal control over financial tv to record process summarize and i aversely affect the Ci s

Ricporta a conditions involve matters coming to our attention

In conjunction with the reportable condition discussed above the City has several grants that have a discrenancv between the revenue and e enditnres ramrrAPA i thtp vino nernuntm recor s and the r
Assistance
68

There is an absence of controls in place to

One Southeast Third Avenue Tenth Floor Miami Florida 33131

Offices in Miami 0 Ft Lauderdale
Boca Raton

Tel 303 37 42
Kest Palm Beach

Fax 36 S1 1 17
Stuart

com rchcpa www

Member of Summit Intematitmal A iIMs Inc xi1h otli r in rnec rml ams hreuthout Iha ro

t ea Iem4 naerican Intilute of Celled Public AccoumWb md memherni he Fian i z tars

Ix
Honorable Mayor City Council and City Manager City of Homestead Florida
Page Two

A material weakness is a condition in which the design or operation of one or more of the internal control M
N N
M
t

components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a

timely period by employees in the normal course of performing their assigned functions

Our

consideration of the internal control over financial reporting would not necessarily disclose all matters in

the internal control that might be reportable conditions and accordingly would not necessarily disclose all reportable conditions that are also considered to be material weaknesses However of the reportable

conditions described above we consider items 971 972 996 999 9913 and 9914 to be matera
weaknesses
1

This report is intended solely for the information and use of the Mayor City Council management and the Auditor General of the State of Florida and is not intended to be and should not be used by anyone other than these specified parties However this report is a matter of public record and its distribution is not
limited

1 c1Ye Q
Miami Florida

o C

fcec

September 27 2000

69

Rachlin Cohen
Certified Public Accountants

Holtz LLP
Consultants

I I

Honorable Mayor City Council and City Manager

City of Homestead Florida

We have audited the accompanying general purpose financial statements of the City of Homestead

I
I I

Florida the City as of September 30 1999 and for the year then ended and have issue4ur report dated September 27 2000 We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards issued by
the Comptroller General of the United States

In connection with our audit of the general purpose financial statements of the City for the year ended

September 30 1999 we report the following in accordance with Chapter 10 550 Rules of the Auditor
limited to the matters outlined in Rule 1O Ixe 554

General Local Government Entity Audits which requires that this report specifically address but not be

1 No inaccuracies irregularities shortages defalcations or violations of laws rules regulations and contractual provisions were reported in the preceding annual financial audit

2 The City during fiscal year 1999 was not in a state of financial emergency as defined by Florida
Statute Section 218 1 The City had 503 three funds with deficit balances for two consecutive
and the

3 Recommendations to improve the City s present financial management and accounting procedures are accompanying this report in the schedule of findings and questioned costs
4 Most of the
summary
as

1111

5 During the course of our audit we noted instances when the City
a Made illegal or improper expenditures

b Had improper or inadequate accounting procedures

c Failed to record financial transactions which did have a material effect on the City s
purpose financial statements

70

One Southeast Third Avenue Tenth Floor Miami Florida 33131

Offices in Miami

Tel 305 37 9 a Fax 42

West Palm Beach
ruart

Ft Lauderdale a Boca Raton

com rchcpa www

IenMr n Sunrnit International A th atiico in principal aho thmu hout t e d Iemheen e lmen un ln ri Cmai d Nbk ASavatmti and wrnba ar the Florida ln 9t tu e m Cd i ii
b

Honorable Mayor City Council and City Manager City of Homestead Florida Page Two

d Had other inaccuracies irregul shortages or defalcati

The above findings are disclosed in the Schedule of Findings and Questioned Costs
6 The annual nancial report for the year ended September 30 1999 was not filed timely with the

Department Baffint of ng a and Finance pursuant to Section 218 Ixa Florida Statutes see 32
condition 99 1 in the Schedule of Findings and Questioned Costs and therefore we were

able

to agree the report with the audited financial statements of the same period 7 The City was incorporated by Chapter 165 Florida Statutes The City included the following component unit Community Redevelopment Agency of Homestead Homestead Economic and

Rebuilding Organization which was created pursuant to Ordinance 940651 of the City of
Homestead Florida

This report is intended solely for the information and use of the Mayor City Council management and
the Auditor General of the State of Florida and is not intended to be and should not be used by anyone

other than these specified parties However this report is a matter of public record and its distribution is
not limited

Miami Florida

September 27 2000

71

CITY OF HOMESTEAD FLORIDA

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FISCAL YEAR ENDED SEPTEMBER 30 1999

t l 4
3 No

11 LAP

II PRIOR YEAR FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS STATUS

Continued

983 CFDA No 14 219 Community Development Block Grants Small Cities S Department ojHousing and Urban Development U

Passed through the State of Florida Department of Community Affairs

Contract No 94DBS7111302A03

This comment is no longer applicable as there were no loans made from this grant during September 30
1999

984 CFDA No 14 239 Home Investment Partnership Grant

S Department ofHousing and Urban Development U

Contract No b193DA0120252

This comment was repeated as of September 30 199 9 See Schedule of Findings and Questioned Costs
984

985 CFDA No 16 000 Federal Equitable Sharing S Department ofJustice U

This comment was repeated as of September 30 1999 See Schedule of Findings and Questioned Costs
5 98

Finance Deficiencies
This omment was

as of September 30 1999 See Schedule of Findings and Questioned Costs

R97 2 Internal Service Funds

This Lnment was repeated as of SeerPe 30 1999 See Schedule of Findings and Questioned Costs co 9923
Bank Reconciliations

This com was repeated as of September 30 1999 See Schedule of Findings and Questioned Costs
0910

Hurricane Andrew State Trust Fund

This comment no longer applies as of September 30 1999

Florida Forfeiture Reporting
This comment was repeated as o
99
77

19

See Schedule ofFindings and Questioned Costs

CITY OF HObIESTEAD FLORIDA

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS

FISCAL YEAR ENDED SEPTEMBER 30 1999

1
II PRIOR YEAR FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS STATUS
Continued
Fixed Assets

This comment no longer applies to the enterprise funds fixed assets However see comment 49914 in
the Schedule of Findings and Questioned Costs relating to the general fixed assets
Accounts Payable

This comment was repeated as of SeDtemhu Q 1999 See Schedule of Findings and Questioned Costs
Payroll

This comment was repeated as of September 30 1999 See Schedule of Findings and Questioned Costs
Pooled Cash

is comment was repeated as of September 30 1999 See Schedule of Findings and Questioned Costs
99 P 27

General Employees Pension Plan Investment Guidelines

This N

comment was repeated as of 99

Debt Covenants

e 30 1999 See Schedule ofFindings and Questioned Costs

This comment was repeated as of September 30 1999 See Schedule of Findings and Questioned Costs
Band Arbitrage

This comment was repeated as of September 30 1929 See Schedule of Findings and Questioned Costs
21

Risk bfanagennent Public Liability and Proper0 Cases

The City has implemented this recommendation as of September 30 1999

Risk bfanager

The City has implemented this recommendation as of September 30 1999

78

CITY OF HOMESTEAD FLORIDA

NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
Continued

NOTE 2 DEPOSITS AND INVESTMENTS Continued

Fnvestntents Continued
Carrying
Value

Per combined balance sheet Cash and investments unrestricted Cash and investments restricted

987 273 67
404 3 843 70 830 678

NOTE 3

RESTRICTED CASH AND CASH EQUIVALENTS

Restricted and limited use assets of the Enterprise Funds at September 30 1999 represent monies required or designated to be used for debt service renewal and replacement and customer deposits under the terms of bond covenants or City ordinances The City had restricted the following
assets for the following purposes at September 30 1999
Debt service

Renewal replacement and improvement Customer deposits

Total

S 855 955 747 589

859 1 241 84 4 3 04

NOTE 4

BUDGETGAAP RECOi1CILIATION

Expenditures and Changes in Fund Balances Budget to Actual to the amounts on the Combined Statement of Revenues Expenditures and Changes in Fund Balances
Special
General
Fund Revenue

The following schedule reconciles the amounts on the Combined Statement of Revenues

Funds

Excess deficiency of revenues over expenditures and other financing sources uses GAAP basis
Encumbrances recorded as expenditures
Funds not budgeted

S 599 839 692 604

260 605

863 214
084 1 043

Excess efficiency ofrevenues over expenditures and other financing sourc s uses budgetary basis NOTE S DEFICIT FUND EQUITY

S 444 291

444 47

The Community Development Block Grants Special Revenue Fund had a deficit fund balance of
in from various City projects

00t September 30 1999 This deficit will be eliminated through anticipated program 87

19

CITY OF HOAIESTEAD FLORIDA

NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS

Continued

NOTE 5

DEFICIT FUND EQUITY Continued

The Home Program Grant Special Revenue Fund had a deficit fund balance o 112 Z4t 9

September 30 1999 This deficit will be eliminated through anticipated program 1

various City projects

from
Z400
d

1
1

The Other State and Local Grant Fund had a deficit fund balance o 795 12 September 30 2t 1999 This deficit will be eliminated through anticipated grant me or general fund contributions if necessary

The Motor Sports Complex Special Revenue Fund had a deficit fund balance of 226 905 at September 30 1999 During 1999 the City transferred 695 913 of the electric fund equity into 8 the fund decreasing the deficit The remaining alance will be eliminated through anticipated
increases in the fund s revenue s tream

The Health SelfInsurance Internal Service Fund had a deficit fund equity of 94 035 as 1
September 30 1999 The City will eliminate this deficit through increasing departmes for employees health insurance during the next five fiscal years
The Other SelfInsurance Internal Service Fund had a deficit fund equity o 79 478 3 September 30 1999 This deficit was reduced by approximately 303 000 during the 1999 year The City will continue over allocating insurance costs to eliminate this deficit
at
t

Il
4 ysb a
A

1
NOTE 6 INTERFUND PAYABLES AND RECEIVABLES

Individual interfund receivable and payable balances at September 30 1999 are as follows
Due from
Other Funds

Due to Other Funds

General Fund

857 180 10

120 405 10

Special Revenue Funds Homestead Economic and Rebuilding Organization HERO Community Development Block Grant
Economic Development Grant Fund

Home Program Grant Fund

Other State and Local Grants Second Dollar Law Enforcement

78 329 048 24 795 370 907 5 071 430

691 2 2 36 371 158 439 1

016 1 475 553 1 2 71 186 23

Confiscated Property Law Enforcement Motor Sports Complex Fund Stadium Complex Fund Total Special Revenue
Debt Service Funds

140 3 065
092 45
757 712 064 8 4 07

586 172
672 272
773 26 746 0 6 79

Downtown Debt Service

034 59
640 71 674 130
70

963 225
960 37 263 923

Utility Tax Debt Service

Total Debt Service

CITY OF HOMESTEAD FLORIDA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Continued

OTHER MATTERS Continued

Recommendation

We recommend that the City review their need to continue to have procurement credit cards These cards

enable the user to bypass the internal controls system established for City purchases as approval does not occur prior to the purchase This increases the risk for unauthorized or unallowable purchases Ifthe City determines it to be necessary to continue with the procurement card program the policy should be strictly adhered to In addition someone in the finance department should review the credit card bills for
adherence to the City policy including proper department authorizations
Afanagentent Response

The Purchasing Department is reviewing its policy and has already taken steps to place additional limits
on the use of procurement cards
99 36 General Fund Revenues

kJ

During our audit ofthe general fund we noted that it has become increasingly dependent on transfers from the enterprise funds and revenues from payments in lieu of taxes These transfers and revenues totaled
approximately 54 000 or 33 of the total revenues and transfers in for the year 900
continue to depend on the enterprise funds to fund its governmen funds

We recommend that the City research other sources of revenues and consider increasing its millage rate to
fund the general fund operations
Afanagement Response

The S4 9 million operating transfers represent the Enterprise Funds portion of citywide administrative

expenses for the Finance Human Resources Purchasing and City Manager s office function There is a
9937 Payroll

PILOT portion which is tied to the millage rate times the fixed asset balance for the enterprise funds The City is currently reviewing ways to increase the City s tax base and promote economic development

The City s finance department processes ayrol weekly These services are using a substantial amount of
the department s time which could be used other services within the Finance Department
Recommendation

We recommend that the City review the effectiveness of changing the pa oil to biweekly and consider

outsourcing its payroll function exclusively to one of the larger payrol services This may prove to be more efficient and cost effective
Afanagement Response

The City in the past has explored a biweekly payroll but has concluded to maintain its current practice
99

Fiscal Year 9899 Budget Page 12

Citywide Revenue y Fund

97 FY

98 FY

98 FY

a
GENERAL FUND

99 FY

Actual

Budget

Projected

Projected

a Ll
L1

Total Taxes
Total Licenses Permits

589 5 122

Total Intergovernmental Revenue Total Charges for Services

Total Fines Forfeits Total Miscellaneous Revenues
Total Contributions General Fund

622 986 926 1 460

531 3 492

000 1 6 07 000 520

794 5 948
000 659

978 7 210
718 000

000 4 2 79 003 4 800

100 93

165 0 2 15 586 3 670 105 300 059 1 950

408 2

880 109
124
015 26 900

960 77

053 1 980
424 3 268

900 0 1 78 516 1 253

053 798 15

Total
L

267 226 16

253 5 2 16 286 737 15

979 253 15

SPECIAL REVENUES

Baseball Stadium Operating

Forfeiture Funds

460 366

582 241

582 241

Motorsports Complex Community Redevelopment Agency Total Special Revenue Fund

022 6 1 58 806 1 000 448 992 822 4 930

000 1 000 750 0 2 73 414 882

197 4 746

978 4 1 38 091 2 750

000 941

848 369 523 8 1 00

000 1 2 65 524 970

305 5 895

713 4 310

ENTERPRISE FUNDS
Solid Waste

a
I I
LI

Stonnwater Utility Electric Utility Water Utility Wastewater Utility Total Enterprise Funds

185 4 3 05 925 380 648 503 24 565 0 2 37 906 3 191 514 233 34

000 8 3 32 000 412 015 2 500

279 3 000

468 3 620 367 973 313 633 25

135 2

673 3 570 3

415

108 4 348
629 713 35

742 4 4 90 609 3 558

400 159 35

835 006 47

INTERNAL SERVICE FUNDS

Fleet Maintenance
0 0

749 281 1
128 4 486 225 4 505

rr
v

Self Insurance Charges for Service

Total Internal Service Funds

943 3 600

033 4 459

943 3 600

033 4 459

128 4 486

974 5 786

2
TOTAL ALL FUNDS
311 226 59 658 188 59

292 0 6 711

494 541 73

a
I

Rewrote Projection

01

lz

12 0

Fiscal Year 9900 Budget

Page 103

oo kq
if
I I
Personnel Services
Total

zr

ELECTRIC UTILITY

Departmental Expenditure Summary

Expenditures
199697

Expenditures
199798

Adopted
199899

Amended 199899

Estimated 199900

I
J

Operating Expenses Non Operating Capital Outlay

810 2 488 24 450 485

0

443 0 3 05 849 672 26

0

929 2 515 24 532 701

0

929 2 515 24 598 953

0

655 5 23 026 675 2

6

555 604 5

938 295 27

292 678 29

651 186 33

754 5 054 33 167 637

962 38

PROGRAM DESCRIPTION

The Electric Utility is divided into six major program areas

AdministrationThe Administration Division provides clerical support financial services

leadership and implements policy Power PlantThe Power Plant Division services 14 000 customers

existing customers

EngineeringThe Engineering Division designed 12 miles of distribution lines during the prior fiscal year in order to keep up with the load growth and to provide reliability to the new and

System OperationsThe System Operations Division is responsible for coordinating the operation of 56 MW power plant 9 distribution circuits and 3 substations in addition to buying and selling power
System Protection

ControlThe System Protection

maintenance of 3 substations 14 000 electric meters and electric power plant electric instruments and controls
GOALS OBJECTIVES

Control Division is responsible for

Position the Electric Utility to become more competitive as our industry proceeds with de
regulation

Review rate structure as it compares with our primary competitors

addressed

Review service delivery trends to identify competitive strengths and weaknesses to be

Become FERC compliant in our financial reporting

103

Fiscal Year 0001 Budget Pages 138

11

Position Summary
Funding
Source

Adopted
FY 1998 99
0 0

Adopted
FY 1999 00
0 0 71 71

Adjusted
FY 1999 00
0

Adopted
FY 2000 01
0 0 72
72

Increase Decrease
0
0

General Fund Trust Fund Utilities

Total

0 74 74

60
60

Revised by 3 FY 199900

1 Position

Program Development Coord Position

2 Positions Per Council approval in FY 99 00 3 Journeyman Apprentice

positions were created in exchange for I Journeyman Lineman position
Difference of 2 for FY 2000 01

2 Positions Mgr Of Enterprise Accounting Q Accountant I moved to Finance Department

Departmental Expenditure Summary

FY 1997 98

FY 1998 99

tel Services

FY 1999 00

00 1999

005 3 443
849 672 26
0

929 2 515
598 953 24

FY 2000 01

ng Expenditures

Outlay
Total

270 6 5 55 160 701 25

555 5 604

270 6 5 55 160 701 25

555 5 604

754 5 054

867 4 047 22 445 812 490 2 833

3R 1GZ

138C

ao Ol lyy

0 000
GENERAL FUND

1 wkt
Citywid Revenues by Fund

FY 98
Actual

99 FY Un audited

00 FY

FY 2001

Projected

Projected

Property Taxes
Other Taxes Total License Permits

914 9 4 24 057 1 709 226 762 225 5 2 18 477 3 977 114 253 437 3 450
000 1 000

155 5 814

829 5 1 01 578 1 904

396 2 600
748 138

468 1 5 23 922 2 129

000 795 192 4 902

344 5 149

Total Intergovernmental Revenue Total Charges for Service

Total Fines Forfeits Total Miscellaneous Revenue
Total Contributions

080 116

168 85 887 4 375

0

500 88 584 950 932 3 200 229 755 17

733 3 4 43 339 827 993407 2 602 158 290 85 673 271

372 4 454

Total General Fund SPECIAL REVENUES

754 292 17

438 744 15

168 428 18

Baseball Stadium Operating Motorsports Complex Community Redevelopment Agency Total Special Revenue Fund
ENTERPRISE FUNDS Solid Waste

68 737 756 605 11 011 1 003

496 685 12

89 972 165 2 000

114 979
234 3 086

90 700 165 2 000

00 98
235 3 700

304 836 165 2 000 078 1 911

548 3 747

234 4 373

372 4 189
600 38 962 8

715 4 851
717 779

Stormwater Utility
Electric Utility

564 413

725 426

Water Utility Wastewater Utility Total Enterprise Funds

INTERNAL SERVICE FUNDS
Fleet Maintenance

25 085 255 928 1 768

761 3 915 332 359 31

599 25
I

268 199

385 4 900
827 3 767

484 3 199 764 734 35

330 971 51

2 5 60 3 756 2 539 158 4 076 716 970 44

Self Insurance

Charge for Service

033 3 362 033 3 362

Total Internal Service Funds

207 1 024 720 4 2 51 658 3 744

141 3 922
289 5 659
431 8 581

155 3 4 32 332 4 155

TOTAL ALL FUNDS

944 370 64

032 372 58

414 294 77

212 379 75

11

William

Hough Dick Montalbano unsigned letter dated 3 01 7

R

100 SECOND AVENUE SOUTH SUITE 900 ST PETERSBURG FLORIDA 33701 4396

William i Hough U
727 895 8880 800 8000061 FAX 727 895 8895

March 7 2001

1 11
Mr Curtis K Ivy Jr City Manager City of Homestead
7090 North Homestead Boulevard Homestead FL 33030
Dear Curt

At your request we have reviewed the City of Homestead s Annual Audited Financial State new
for the period ended September 30 1999 and the adopted budget for the current fiscal year girding September 30 2001 We have not had an opportunity to review any financial information for the 1 iscal year ended September 30 2000 We make the following observations and raise the following co y ems based on these two documents and acknowledge that the extent of our evaluation must be refined one the audited financial statements for the year 2000 are available Our primary concern was to assure yot that the City of Homestead had complied with its various financial covenants regarding the outstanding debt
of the City of Homestead

First we reviewed the results of operations for the water and sewer system for the year a ided

September 30 1999 Your debt service coverage for the fiscal year ended September 30 1999 is w Il in
excess of the requirement under the bond documents We then reviewed the electric system to deter nine

compliance with the outstanding debt relating to the Motorsports Complex given that the pri wry security under the loan agreements is the net revenues of the electric system The review of such
ificant conces n financial statements has raised significant en that the electric

has operated at a loss 011

ended S a cash flow basis o apprmrimatety s390 00 for fiscal 000 coven R loa agreement or t Gulf Breeze loans which funded the Motorsports t W90ff

require an annual rate co 1 15

was In reviewing the financial information it appears that the electric system budget for 1 adopted with a deficit ipated tic The budgeted revenues or the electric system 9 999 were n a

approxrmate y
ve rat

mt

ton yet the operating expenses were a

tltrle a

climately s32 million This sl ould

revrewmg

some concern at

gd was ado

summary of city

wide revenues and expenditures contained in the adopted budget for 20002001 it appears thrt the
proiected revenues for 2000 reflected a 50 increase in revenues ova 1992 This was not a to listic

assumptiongiventt1faekofrate n ases

ac of significant growth within the utility syster L

Compounding the problem of overestimating electric system revenues was the fact that the City

of Homestead adopted a utility tax which should have had a neutral impact on customers etven
pan was
newr e ectnc system rates too ted utility tax The problem J that tri City aid in fact reduce me electric system rates but did not adjust its transfer out ofthe electric r stem to the General Fund The 2 Wbudgn reflected significant increase in electric system revenues ar d for

e fiscal year en rag September 30 2001 continues to to ec slgm cant revenues over the anti fated

G WF vy 3 74114ac 7 I wa 1411

Senior administration believes that it will be in the 25 millk n to

S27 million range resultin m anotl r otrnC reduce its estimates tt I not ru ce t em reduced electric rates We are told 2 ll not be any better than the c Item a am opera

shall o

So while the City of HomesWc did

sufficiently to take into consideration the irnpact o1 the

ind sate

its cash reserves As

that it

99 the electric system had less i

not have sufficient liquidassets to susta
revenues an

lions longtern given the excess of expenditur ver

JJ DD
ttics

The additional concern that the problems within the electric system raises as I reviewer the adopted budget for the General Fund is that the General Fund reflects a balanced budget which runs
for 2001 both the full im4a of coil tint the utility tax and collection of a transfer out of the ale tric it will n it Tote extent that the electric system is not
able to fund such trans ens and Genera un m

Keii4 Fx

I abilities

a manna statement as of Septem year ended September 30 1999 the Ge neral

trap

General und of approximately 32 trillion For th

Fund ope rated at a defter a

IMM

istely 1 million If ft r 2000a T 1 re xt

t su if not all of its cash and may not have sulticient revenues W tun I its

invesmpants in light of 0W that budgeted transfer to the General Fund

Given the concerns which the review of sale fmancial information raises it is imperatM the City of Homestead do all in its power to accelerate the completion of the audit for fiscal year a ided September 30 2000 An organization the size of the City of Homestead should provide is manger elected officials and the general public monthly financial statements to review its performance at d to allow it to control its limited resources and to insure that it meets its budgeted targets While the C ty is not in technical default under the terms of the loan agreements and reimbursement agreements suppo ring the Motorsports financing it is imperative that the City move forward to engage an independent Electric Rate Study to evaluate the electric systems rate structure and customer base to determine the approf date
utility rates W e w
d slat

ityyttlsd Lti ac k of iLe outci to sudi or9 CU Tent of timely fma teal

This letter provides you with a summary of the findings we have discussed in our meetings do ping
the past several weeks We will continue to identify additional information as we meet with S mar Management from Finance and the Electric System I would be available to meet with you and the City Council Members to discuss these issues in greater detail and to assist the City in developing an A Sion Plan to address these financial issues We have attached to this summary the Financial Analysis i lated

February 12 2001 which we have previously presented to you

Sincerely
WILLIAM R HOUGH fit CO

Richard Monalbano

Senior Vice President

Manager of Public Finance

puTj27 F

y3 cImdM GAPFmr 7 0I dx RNI

City of Miami s Recovery Plan 11 96 15

list of potential options

STRATEGIC FINANCIAL RECOVERY PLAN

n
t

IXCIIP 1 ItITtI Q

p F 0

Presented to

THE MAYOR AND CITY COMMISSION

Submitted 41

MERRETT R STIERHEIM
City Manager

NOVEMBER 1 1996

Potential Funding Solution Alternatives For Fiscal Year 199697 A Short term Loans Cash Flow Enhancements
1 2 4 Internal pooled cash Tax Anticipation Notes Loan from pension fiords

3 Loans from other governments and quasiCity organizations

5 Seek advance payments from utilities for fran and utility taxes

B Enhanced New Revenues 6 Increase EMS fees and billings and pursue payment from City residents

7 Reestablish parking ticket issuance to previous levels pattiatlarly downtown

S Reform code eaforeement process and instmm hearing examiners
10 Increase user fees where feasible

9 Utilize 1996 97 Law Enforcement Trust Fund moneys for Police overtime
11 Inereese solid waste fee to a level comparable with other jurisdictions
12 Increase marina live aboard and other public facility fees 13 Increase alarm towing and certificate ofuse renewal fees

14 Pursue leveraged leases sale leaseback transactions for appropriate City faei ities
15 Sell parking garages to Off Street Parking Auith
16 Sell City assns such as land buildings and assns
17 Pension Oust m absorb eve costs

20 Identify non ft

18 Aggressive pmaue jaecelerated groat drawdowns from state and federal governments 19 Aggressively pursue recovery of state and federal grant reimbursements or licensed businesses on City Property

21 Evaluate all City leases for oppor to increase revenues

22 Chmge for all special even costs incurred by the City

23 Evaluate all avaullable prior year CDBG HOME and other federal fonds for potential n jai charges to grant funds by controlling program costs under admioistrarive a 24
25 Establish a suggestion award Program for all employees
Cap

26 Establish firm and challenging guidelines for the waiver of City fees 27 Expand revenue collection program for delinquent accounts
C Expenditure Reductions

28 Explore all new City hiresjoking State pendon plan in lien of existing City Plans
1 Institute a 4be board reductions in operations depending on service implications
2 Reduce managerial and administrative positions 3 Review all executive benefm

4 Evaluate benefit packages for all employees nniouiaed and non unionized
5 Reopen and re aegotmoe all anion contracts
7 Freeze or cancel 1996 97 merit increases
and balances including periodic auditing
10 Reduce cellular Phone

6 Consider nego0ate deferral ofthe 4 percent January costofLiving adjusrmeM for all employees
S Reduce number ofand charge monthly use fee for take home vehicles
11 Evaluate the growth in temporary and part time positions
12 Immediately freeae all funded vacancies

9 Define City Manager s discretionary authority to provide for disclosure and appropriate checks

13 Freeze all travel memberships and non essential Purchase

14 Stop portalto patal coverage for protective service employees

15 City Commission City Clerk City Attorney City Manager to evaluate their office expenses
and establish fume guidelines which are approved public and part of formal City procedures
16 Increase use of volunteers and community groups at park facilities 17 Close costly obsolete public facilities that are a drain on the treasury
19 Review recycling program

18 Modify ctarent level of solid waste service including reducing trash service

20 Reevaluate and restructure NET program to reduce costs

operations

21 Reduce general fund supported community based organizations consistent with reductions to City
22 Reduce funding in special programs and accounts area non departmental allocations
23 Review all utility expenses

Potential Funding Solution Alternatives For Fiscal Year 98 997 and Beyond 1
1 Raise property taxes to 10 mill level 2 Present extraordinary two year mtllage for voter consideration
fire service

3 Transfer fire service to County or establish a City non ad valorem based special assessm district for
4 Transfer E911 service to County

5 Evaluate feasibility oftransferring other services to Dade County

for exempt land is City etc

6 pursue legislative proposals to enhance revenue partial year assessments payments Ilea taxes
7 Evaluate allotnding loam due the City from various loan programs and aggressively pursue

9 Restructure pension program and City contribution level sbaring programs audit current programs for
10 Tie cost containment and performance goals to compensation levels for City executives
savings opportunities

8 Establish non ad vatotem based special assessment districts for sand lighting and other services
11 Develop replacement program for City vehicles and equipment

tepayment all delinquent amounts

12 Properly fund all sellinsurance trust fimds and begin to build adequate reserves to help cover tmfimded liabilities 13 Thoroughly analyze worker s compensation and general liability and other self instate liabilityy
14 Eliminate dependence on debt fmaneing for operating P urposes 15 Fund essential renewal and repiaamew on a payasyuu go basis
16 pursue privatization oppornmides as appropriate
18 Assess feasibility of restructuring City debt 19 Reduce dependence on TANS

pmgrgams to develop procedures and systems to contain and or reduce costs

17 Develop twotier Compensation program for new hires in all areas ofCity service
20 paste renegotiating agreements with MSEA and County regarding public facilities eligible for convention development tax support
fundm 8 for debt and operations of

21 Aggressively seek all Outstanding FEMA receivables

general fund or utility tax support required

22 Restructure health insurance program to contain and orrethm co sts

23 b stidne plan to make all City conference convention and pub facilities selfsufficient with no
24 work with FP L to instiarte energy savings programs in all City facilities
25 Evaluate privatization of garbage and trash collection
Schedule 2
926196

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PARKING
REQUIREMENTS

HOA
mi

JUNE 7 2001

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May 30 2001

Mr Curt Ivy

City Manager

City of Homestead
790 N Homestead Boulevard

Homestead Florida 33030

Dear Curt

On behalf of Homestead MiamiSpeedway HMS please accept this letter as our

offer of 1 3 million cash to purchase the entire 87 26 acre property south of Palm Drive which
the City of Homestead currently owns

independent surveyor which is currently on the 87 26 acres as a partial payment toward the total
amount of fill owed by the City to HMS The total amount of fill owed by the City to HMS is
000 cubic yards 230

If this offer is accepted we would accept the amount of fill to be verified by an

HMS makes no expressed or implied representation that HMS will purchase any additional fill over and above the actual fill existing on the property at the time this 87 26 acres is
purchased

In the event that HMS in its sole discretion should elect at any time or times to purchase

additional fill to be placed on this 87 26 acres then any royalty paid by HMS to the City of
Homestead for such additional fill shall not exceed 40 cents per ton

Any such royalty paid by HMS to the City of Homestead shall be confined to future fill placed on this 87 26 acres and HMS makes no expressed nor implied representation that it will
pay any royalties on any other fill placed on any HMS property other than this 87 26 acres
acres at the time of purchase

No royalty shall be paid on the 230k cubic yards of fill existing and situated on this 87 26

Sincerely Z
Curtis Gray

HOM ESTEA D MIA NI I

SPEEDWAY

ONE SPEEDWAY BOULEVARD HomESTEAD FLORIDA 33035 1500 PHONE 305 2305000 FAX 305 230 5223
com homesteadmiamispeedway www

1A

ECONOMIC IMPACT RESULTS

EVENT
1997 World Series

ECONOMIC IMPACT
62 million

The Ericsson Tournament

68 million

2000 Orange Bowl

1999 NASCAR Winston

103 million 118 million

Cup Series
1999 Super Bowl
396 million

Source Sport Management Research Institute

HomeataadlAWml Soaeowav Pahments ro 1 mals in HomoshvirciMorldo City G

8v

them AI 3A dam M esd MaWaE nes 53 8

1 io apa W 517

AB BPal Aclbn C yd
Fan

S581
87 113

184 1

751 538

AlperF Anakan Andcen MAR

BW

Energy
Rerl C

349

50

272

671

500 1 181 7
1 748 265

000 1 234 1
150

500 2

tror9 7owla
FhrWa EastD clew tam
s

181 7
5 210 1 9 4 17 138 60 13

ABlv6ehaotkcnaeW 1dpGoa 5
carryd ofFlF Ci CdaBI Pdl
City of

914 5

1 0 51 081 4
583

790 3
2156
143

118 3
077 13

1731

evmid

28 1 880 1
w

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Pnnenp

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102

1182 15 148
102 w

CMIanol Bm 1lomeslead Carder A CapER

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832 1

513 2
200

199
722

874 4
100

re PmtacOOn

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333 1
S00

210

265 2

A91em
529

loll City
Rent Homestead

100 1

250 487
487

Homestead

Other Utilities

724 3 2 05 615 56 070 213

358 2 974
246 89 869 258

355 2 724
898 58 162 294
210 17
200

City of Homestead
CM Ar Patrol

525 62

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