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1995MIAMI SHORES VILLAGE Financial Report FISCAL YEAR ENDED SEPTEMBER 30, 1995 MIAMI SHORES VILLAGE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 1995 Prepared by: THE FINANCE DEPARTMENT Patricia Varney, CGFO Finance Director MIAMI SHORES VILLAGE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 1995 TABLE OF CONTENTS INTRODUCTORY SECTION PAGE Letter of Transmittal 1 Village Officials 8 Organization Chart 9 Certificate of Achievement for Excellence in Financial Reporting 10 FINANCIAL SECTION REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS 11 General Purpose Financial Statements (Combined Statements - Overview) Combined Balance Sheet - All Fund Types and Account Groups 12 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Funds 14 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Budgeted Governmental Fund Types 15 Combined Statement of Revenues, Expenses and Changes in Retained Earnings/Fund Balances - All Proprietary Fund Types and Pension Trust Funds 16 Combined Statement of Cash Flows - Proprietary Fund Types 17 Notes to Financial Statements 18 Required Supplementary Information 36 Combining, Individual Fund and Account Group Financial Statements and Schedules GOVERNMENTAL FUND TYPES General Fund: Comparative Balance Sheets 39 Comparative Statements of Revenues, Expenditures and Changes in Fund Balance 40 Schedule of Revenues and Expenditures - Budget and Actual 41 MIAMI SHORES VILLAGE, FLORIDA TABLE OF CONTENTS PAGE Combining, Individual Fund and Account Group Financial Statements and Schedules, Continued GOVERNMENTAL FUND TYPES Capital Projects: Comparative Balance Sheets 44 Comparative Statements of Revenues, Expenditures and Changes in Fund Balance 45 PROPRIETARY FUND TYPES Enterprise: Comparative Balance Sheets 46 Comparative Statements of Revenues, Expenses and Changes in Retained Earnings 47 Internal Service: Comparative Balance Sheets 48 Comparative Statements of Revenues, Expenses and Changes in Retained Earnings 49 FIDUCIARY FUND TYPES Trust and Agency Funds: Combining Balance Sheet - Trust and Agency Funds 50 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Expendable Trust Funds 51 Combining Balance Sheets - Pension Trust Funds 52 Combining Statement of Revenues, Expenses and Changes in Fund Balance - Pension Trust Funds 53 Statement of Changes in Assets and Liabilities - Deferred Compensation Fund 54 GENERAL FIXED ASSETS ACCOUNT GROUP Schedule of General Fixed Assets - By Source 55 Schedule of General Fixed Assets - By Function and Activity 56 Schedule of Changes in General Fixed Assets - By Function and Activity 57 MIAMI SHORES VILLAGE, FLORIDA TABLE OF CONTENTS STATISTICAL SECTION PAGE Table I - General Governmental Expenditures by Function - Last Ten Fiscal Years 58 Table II - General Revenues by Source - Last Ten Fiscal Years 59 Table III - Property Tax Levies and Collections - Last Ten Fiscal Years 60 Table IV - Assessed Value of Taxable Property - Last Ten Fiscal Years 61 Table V - Property Tax Rates - Direct and Overlapping Governments - Last Ten Fiscal Years 62 Table VI - Computation of Overlapping Debt Service 63 Table VII - Demographic Statistics - Last Ten Fiscal Years 64 Table VIII - Property Value, Construction and Bank Deposits - Last Ten Fiscal Years 65 Table IX - Principal Taxpayers 66 Table X - Miscellaneous Statistics 67 SUPPLEMENTARY AUDITOR'S REPORTS SECTION Report of Independent Certified Public Accountants on Internal Control Structure in Accordance With Government Auditing Standards 68 Report of Independent Certified Public Accountants on Compliance with Laws and Regulations in Accordance With Government Auditing Standards 70 Management Letter 71 Recommendations to Improve Internal Accounting Controls and Administrative Efficiency 73 10050 N.E. SECOND AVENUE I SHORES. FLORIDA 33138.2 November 17, 1995 Village Council Miami Shores Village Miami Shores, FL 33138 Dear Council Members: :PARTMENT TELEPHONE (305) 795-2209 FAX (305) 756-8972 Submitted herewith is the Comprehensive Annual Financial Report of Miami Shores Village, Florida (the "Village ") for the fiscal year ending September 30, 1995 as required by Chapter 11.45 of the Florida Statutes and Chapter 10.550 of the Rules of the Auditor General of the State of Florida. The Village Finance Department is responsible for the content of this financial report, and it is the official report of the Village. We believe this report represents a fair presentation of the Village's financial position and results of operations at the Village as measured by the financial activities of its various funds and account groups and that all disclosures necessary to enable the reader to gain the maximum understanding of the Village's financial affairs have been included. The Village's independent auditors, Rachlin Cohen & Holtz, Certified Public Accountants, have concurred in issuing an unqualified opinion on the financial statements as presented herein. 114- This report consists of four sections. The Introductory Section contains names of the Principal Officials of the Village, organizational structure and highlighted financial information. The transmittal letter and table of contents are included in this section. The Financial Section contains the Report of Independent Certified Public Accountants on the General Purpose Financial Statements, Notes to the Financial Statements and Required Supplementary Information for all funds and account groups which disclose the financial position and results of operations for the 1994- 1995 fiscal year. The presentation of this financial report is being made in accordance with generally accepted accounting principles for state and local governments as promulgated by the Governmental Accounting Standards Board. The Statistical Section contains data that are intended to reflect social, economic and financial trends, as well as the fiscal capacity of the Village. It is hoped that this information will give users of this report a better historical perspective and assist in assessing current financial status. The fourth section includes the Supplementary Auditor's Reports required under Governmental Auditing Standards. THE REPORTING ENTITY AND ITS SERVICES The Village of Miami Shores has been incorporated since 1932 and is a political subdivision of the State of Florida. The Village operates under a council- manager form of government and provides General Government, Public Safety, Public Works and Recreation Services to an estimated 10,125 residents. In addition, during the school year, the Village also provides services for an additional 7,048 college students. The Council appoints the Village Manager, who is the chief administrative officer of the Village and is responsible for implementing policies adopted by the Village Council. This report includes all funds and account groups for which the Village is financially accountable. The criteria used in determining the reporting entity are consistent with Governmental Accounting Standards Board (GASB) Statement No. 14, The Financial Reporting Entity. ACCOUNTING SYSTEM AND INTERNAL CONTROLS The Village's accounting records for governmental and similar fiduciary funds are maintained on a modified accrual basis, with revenues being recorded when available and measurable and expenditures being recorded at the time a liability is incurred. Accounting records for the proprietary and pension trust operations are maintained on an accrual basis. Control of the annual budget, adopted by the Village Council, is maintained by a constant review by the Finance Director and Village Manager with monthly financial reports being prepared for internal use. The budget is amended in accordance with provisions of the budget policy during the fiscal year. The Village maintains a pooled cash account for all funds under its control. The cash management program involves a mix of maintaining principal and earnings free from risk, maintaining adequate liquidity to meet our obligations and maximizing investment return through the solicitation of competitive rates from various investment sources. The Village invested mainly in the State of Florida Local Government Investment Trust Fund for fiscal year 1995. The average yields on maturing investments during the year ranged from 4.30% to 5.83 %, producing interest earnings for the year of $232,114, excluding the Village's Pension Fund. GENERAL GOVERNMENT FUNCTIONS REVENUES General Fund revenues amount to $7,965,317 for the period, an increase of 1.4% over the previous fiscal year. General property taxes produced 35% of the General Fund revenues during the year compared to 34.7% for the previous year. The amount of General Fund revenues from various sources and the increases and decreases over the previous year are shown in the following tabulation: -2- Three revenue sources experienced significant increases and one revenue source experienced a significant decrease during FY 1995. The increase in taxes is mainly due to increase in property value as the Village levied the same millage rate as FY 1994. Increase in intergovernmental revenue is due to a full year revenue of the five cent gasoline tax and the Comprehensive Plan Grant. The charges for services increased due to an increase in revenue in recreational fees and activities. The decrease in miscellaneous revenue is due to FEMA reimbursement for Hurricane Andrew. EXPENDITURES Operating expenditures in the General Fund for governmental purposes amounted to $7,290,102, a decrease of 2.4% over the preceding year. The expenditures for the major functions of the Village are shown in the following tabulation (includes capital outlay by department): 1994 1995 Increase Percent Percent (Decrease) Revenue Sources Amount to Total Amount to Total over 1994 Taxes (all sources) $4,044,767 51.5% $4,151,583 52.1% 106,816 Licenses and Permits 182,425 2.3 175,278 2.2 <7,147> Intergov'tal Revenue 1,026,376 13.1 1,097,505 13.8 71,129 Charges for Services 1,790,393 22.8 1,902,751 23.9 112,358 Fines and Forfeitures 155,926 2.0 204,701 2.6 48,775 Miscellaneous Revenue 655.717 8.3 433.319 5.4 <222.398> TOTALS $7,855,604 100.0% $7,965,137 100.0% $109,533 Three revenue sources experienced significant increases and one revenue source experienced a significant decrease during FY 1995. The increase in taxes is mainly due to increase in property value as the Village levied the same millage rate as FY 1994. Increase in intergovernmental revenue is due to a full year revenue of the five cent gasoline tax and the Comprehensive Plan Grant. The charges for services increased due to an increase in revenue in recreational fees and activities. The decrease in miscellaneous revenue is due to FEMA reimbursement for Hurricane Andrew. EXPENDITURES Operating expenditures in the General Fund for governmental purposes amounted to $7,290,102, a decrease of 2.4% over the preceding year. The expenditures for the major functions of the Village are shown in the following tabulation (includes capital outlay by department): The increase in General Government is partly due to reallocation of costs. In FY 1995, all personnel advertising and pre - employment physical and drug screening costs were expended under the Personnel, Department. In the past, these costs had been allocated to individual departments. In FY 1995, the Village employed a Marketing Director to promote the Village. Further, because the PBA contract was re- negotiated, the Village incurred more legal costs. -3- 1994 1995 Increase Percent Percent (Decrease) Expenditures Amount to Total Amount to Total over 1994 General Government $ 874,672 11.7% $ 969,777 13.3% $ 95,105 Public Safety 2,795,714 37.4 2,871,445 39.4 75,731 Public Services 1,970,318 26.4 2,064,994 28.3 94,676 Culture/Recreation 1,437,683 19.3 1,358,698 18.6 < 78,985> Debt Service 388.854 5.2 - 25.188 0.4 <363,666> TOTALS $7,467,241 100.0% $7,290,102 100.0% $ <177,139> The increase in General Government is partly due to reallocation of costs. In FY 1995, all personnel advertising and pre - employment physical and drug screening costs were expended under the Personnel, Department. In the past, these costs had been allocated to individual departments. In FY 1995, the Village employed a Marketing Director to promote the Village. Further, because the PBA contract was re- negotiated, the Village incurred more legal costs. -3- The increase in the Public Safety is partly due to an increase in pension benefits for the Police Officers, salary for the Community Affairs Specialist and the expenditures incurred from the Comprehensive Plan Grant. As for the increase in Public Services, this is mainly due to the funding of the Assistant Public Works Director and to all vehicle maintenance costs being expended under the Motor Pool. In previous years, the expenditures were allocated under each department. The Village paid off its ten year loan in FY 1994, thus reducing the Debt Service in FY 1995. Total fund balance of the General Fund at September 30, 1995 was $1,855,153 as compared to $1,752,357 at September 30, 1994. Presented below is an analysis of General Fund expendable resources designated for capital outlay at September 30, 1995: TOTAL FUND BALANCE - SEPTEMBER 30, 1995 $ 1,855,153 Less: Fund Balance - reserved for encumbrances 329,950 Reserved for Prepaid Costs 32,402 Unreserved fund balance maintained for emergencies and contingencies 745,434 Designated for Future Use 277,068 Designated for Parks & Recreation 138.315 SUBTOTAL - DESIGNATED FOR CAPITAL OUTLAY $331,984 Less: Other asset balances included in fund balance which do not represent expendable resources - Inventories (gasoline, oil and recreation items for resale). 40,582 EXPENDABLE RESOURCES AVAILABLE FOR CAPITAL OUTLAY S12L402 CAPITAL PROJECTS FUND In fiscal year 1991, the Village began the Capital Projects Fund. In fiscal year 1995, $572,239 was transferred from the General Fund to the Capital Projects Fund for funding of acquisition of equipment, construction of capital facilities, and to set up commitments for future projects. Expenditures Amount General Government $ 33,208 Public Safety 116,543 Public Services 326,793 Culture/Recreation 108,136 Debt Service 52,556 -4- PROPRIETARY OPERATIONS ENTERPRISE FUND In Fiscal Year 1992, the Village negotiated an interlocal agreement to participate in Dade County's stormwater utility system. The first billing from Dade County to all users was in July 1993 and was assessed at $2.50 per Equivalent Residential Unit. As of September 30, 1995, the Stormwater Utility Fund has a fund balance of $174,748. Capital outlay will begin in FY96. INTERNAL SERVICE FUND Commencing in fiscal year 1990, the Village instituted a protected self - insurance program with a self - insurance retention of $25,000 per occurrence for property and liability and $75,000 for workers compensation. The maximum risk of loss is $350,000 per year. The Village performed an actuarial study in FY95. The excess coverage premiums, state fees, management fees, claims and recording of incurred but not reported (IBNR) claims in FY 1995 totaled $673,857. As of September 30, 1995 $513,566 was reserved for IBNR, $140,926 was reserved to settle claims, resulting in a fund equity of $137,321. GENERAL FIXED ASSETS ACCOUNT GROUP As of September 30, 1995, the General Fixed Assets account group includes all assets used in performance of general governmental functions and the Miami Shores Country Club. Since the Club was leased in March 1990, all assets belonging to the Club were transferred to the General Fixed Assets Account Group. Depreciation of Country Club assets was recorded until September 30, 1989. A total of $1,347,119 of Country Club assets (Land - $580,917, Buildings - $347,417, Improvements Other Than Buildings - $261,763 and Equipment - $157,022) were transferred to the General Fixed Assets Account Group. As of September 30, 1995, the Village's General Fixed Assets amount to $7,926,378. The total amount represents the original cost or estimated cost of the assets and bears no relation to their fair market value except the assets transferred from the Country Club, which were depreciated to the date of transfer. Depreciation is not computed in the General Fixed Assets Account Group. FIDUCIARY OPERATIONS The Miami Shores Village Pension Plan is governed by a Board of Trustees appointed by the Village Council that is responsible for the administration of the plan. The Village is responsible for funding any actuarial deficiency which may arise. During the year, Pension Fund revenues were derived from State of Florida contributions for police officers of $22,271, employee contributions of $202,629, Village contributions of $225,844 and net investment earnings of $1,808,374. Fund balance at the end of the year amounted to $10,871,843, as compared to $9,155,034 for the preceding year. -5- DEBT ADMINISTRATION In 1991, the City issued revenue bonds to fund the purchase of a streetsweeper at $83,782; crosswalk paving at $60,000 and the driving range project of $30,000. These bonds will be paid off by October 1, 1997. RISK MANAGEMENT Since fiscal year 1990, Miami Shores Village has been functioning under a protected self - insurance program. Under the program, the City paid $274,296 in premiums and administrative fees for FY 1995 and experienced claims of $399,561 for fiscal year 1995. PROSPECTS FOR THE FUTURE Miami Shores Village is one of the older, well - established communities in South Florida. The Village is fully developed with very little new construction activity. As a consequence of these conditions, this Village is faced with the problem of a static revenue base. This community also supports several churches and a private religion educational institution which have removed property from the Village's tax rolls. As the educational institution has expanded, additional land has been removed from the tax rolls. All of these factors place the Village in an unfavorable position with respect to future tax revenues. The Village currently levies a millage rate of 8.493, while Florida statutes impose a cap on millage rates at 10 mills. There is no industrial area in Miami Shores; it is mainly a residential neighborhood. The downtown area that consists of approximately five blocks, primarily includes small office buildings. The Village has hired a Marketing Director in Fiscal Year 1995 to promote Miami Shores Village hoping to attract quality business and residents to the Village. The Village Administration is investigating the possibility of annexing neighborhood unincorporated areas to generate.Additional revenue for the Village. The Village is also looking into the feasibility of contracting police services for Barry University. MAJOR PROJECTS COMPLETED IN FY 1995 The Village Marketing Department has completed a Public Relations and Communications Plan to promote awareness and understanding of Village services, projects and programs to the public. 2. An inventory of the N.E. 2nd Avenue Business district has been completed, which includes the size and cost per square foot of all current vacancies. 3. The Village has updated its computer system, including conversion to a PC network utilizing new technology such as Windows, Lotus, Page Maker, etc... 4. All sidewalks in the business district were presurre cleaned, dozens of street signs were installed and new Village Hall and Library monument signs were installed. S2 MAJOR PROJECTS SCHEDULED IN FY 1996 The purchase and renovation of 9990 N.E. 2nd Avenue for the police department is expected to be completed in FY 1996. 2. Continuation on the renovation and improvement of the ten -year swimming pool project that was adopted by the Council in 1990. Conversion of the Village's main computer system from a main frame to a PC system. 4. Purchase of a new communication system for the Police Department. Sidewalk repairs and street resurfacing in certain sections of the Village. CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Miami Shores Village for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 1994. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. Such reports 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 our current report continues to conform to Certificate of Achievement Program requirements, and we are submitting it to the GFOA to determine its eligibility for September 30, 1995. ACKNOWLEDGEMENTS A Comprehensive Annual Financial Report of this nature could not have been prepared without the dedicated efforts of all staff members concerned. 1 would like to express my appreciation to all those who helped to produce this report and for your interest and support in planning and conducting the fiscal operations of the Village. A special note of thanks and appreciation is also extended to the firm of Rachlin Cohen & Holtz for their professional approach and high standards in the conduct of their independent audit of the Village's financial records and transactions. Respectfully submitted, rD Patricia Varney, CGFO Finance Director Bra MIAMI SHORES VILLAGE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT SEPTEMBER 30, 1995 VILLAGE OFFICIALS MAYOR Lou Imburgia VILLAGE COUNCIL Mary Ross Agosta Michael H. Boyle William J. Heffernan Cesar Sastre VILLAGE MANAGER Michael R. Couzzo, Jr. FINANCE DIRECTOR Patricia Varney VILLAGE ATTORNEY William F. Fann, Jr. VILLAGE AUDITORS Rachlin Cohen & Holtz -8- MIAMI SHORES VILLAGE ORGANIZATION CHART 1994 -1995 VILLAGE CITIZENS VILLAGE ATTORNEY VILLAGE COUNCIL BOARDS Handicapped Services MAYOR LOU IMBURGIA Planning & Zoning Pension VICE MAYOR CESAR SASTRE Personnel Appeals COUNCILMAN WILLIAM HEFFERNAN Code Enforcement COUNCILMAN MICHAEL BOYLE Historic Preservation COUNCILWOMAN MARY ROSS AGOSTA Library Fine Arts Recreation Advisory Country Club Advisory Beautification Advisory VILLAGE CLERK POLICE PUBLIC DEPARTMENT I I I WORKS VILLAGE MANAGER FINANCE DIRECTOR 5/0 I RECREATION LIBRARY e/rn• alb BUILDING b• I I HUMAN I I CODE I I MARKETINGO ZONING RESOURCES COMPLIANCE 2/0 1/1 310 General Fund: 116/88 (Number of Full Time/Part Time Personnel) Plus 20 Independent Contractors - Swim Tam Coaches, Tennis Pro & Instructors •• Plus three Independent Contract Inspectors -9- Certificate of Achievement for Excellence in Financial Reporting Presented to Miami Shores Village, Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 1994 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. -10- President Executive Director RACHLIN COHEN & HOLTZ CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS A PARTNERSHIP INCLUDING PROFESSIONAL ASSOCIATIONS REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS Honorable Mayor, Village Council and Village Manager Miami Shores Village, Florida We have audited the general purpose financial statements of Miami Shores Village, Florida (the "Village ") as of September 30, 1995 and for the year then ended, as listed in the table of contents. These general purpose financial statements are the responsibility of the Village's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit: We conducted our audit in accordance with generally accepted auditing standards and GovernmentAuditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Village at September 30, 1995 and the results of its operations and 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 November 17, 1995 on our consideration of the Village's internal control structure and a report dated November 17, 1995 on its compliance with laws and regulations. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual fund and account group financial statements and schedules for the year ended September 30, 1995 as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Village. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. -11- Member of Summit International Associates, Inc. with offices in principal cities throughout the world. Member of the American Institute of Certified Public Accountants Division for SEC Practice Section and the Private Companies Practice Section Member of the Florida Institute of Certified Public Accountants Coral Gables, Florida November 17, 1995 1320 South Dixie Hwy. 100 South Biscayne Blvd. 700 Southeast Third Ave. 1900 Corporate Blvd. Penthouse Suite 1201 Third Floor Suite 305 West Coral Gables, Florida 33146 Miami, Florida 33131 Ft. Lauderdale, Florida 33316 Boca Raton, Florida 33431 Dade (305) 667 -0412 Dade (305) 377 -4228 Broward (305) 525 -1040 Phone (407) 989 -8788 Fax (305) 665 -7456 Fax (305) 377 -8331 Fax (305) 525 -2004 -11- Member of Summit International Associates, Inc. with offices in principal cities throughout the world. 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Nh ,r V1 V l V' 1 h h -NN- h - 6A 69 O y V 7 E o E c E V V O N fO ••' U V N` 9 H V y Q N Q� v Cy "1 CC C 6 'o LO _ •V 61 L" V N V N MIAMI SHORES VILLAGE, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS/FUND BALANCES - ALL PROPRIETARY FUND TYPES AND PENSION TRUST FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 1995 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1994) Proprietary Fund Types Fiduciary Fund Types Internal Enterprise Service Self Pension Stormwater Insurance Trust Totals (Memorandum Only) 1995 1994 Operating Revenues: Charges for services $134,237 $ 491,000 $ - $ 625,237 $ 618,341 Contributions - - 450,744 450,744 450,537 Investment earnings (loss) - - 1,808,374 1,808,374 (113,099) Total operating revenues 134,237 491,000 2,259,118 2,884,355 955,779 Operating expenses: Insurance expenses - 673,857 - 673,857 549,397 Personnel expenses 28,818 - - 28,818 28,818 Administrative and general 17,502 - 95,195 112,697 115,926 Benefit payments and refunds - - 447,114 447,114 419,749 Total operating expenses 46,320 673,857 542,309 1,262,486 1,113,890 Operating income (loss) 87,917 (182,857 1,716,809 1,621,869 (158,111) Non - operating revenues: Interest income 6,274 45,776 52,050 30,010 Total non - operating revenues 6,274 45,776 52,050 30,010 Net income (loss) 94,191 (137,081) 1,716,809 1,673,919 (128,101) Retained earnings /fund balances, Beginning 80,557 274,402 9,155,034 9,509,993 9,638,094 Retained earnings /fund balances, Ending $174,748 $ 137,321 $10,871,843 $11,183,912 $9,509,993 _ See notes to financial statements. -16- MIANU SHORES VILLAGE, FLORIDA COMBINED STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPES FISCAL YEAR ENDED SEPTEMBER 30, 1995 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1994) Cash Flows from Investing Activities: Investment income Enterprise Internal 52,050 Totals Net cash provided by investing activities Fund Service Fund (Memorandum Only) 30,010 Net increase in cash and cash equivalents Self 103,507 171,838 126,240 Stormwater Insurance 1995 1994 Cash Flows from Operating Activities: Cash and cash equivalents, Ending $121,888 $802,675 $924,563 Operating income (loss) $ 87,917 $082,857 ) $(94,940 $ 11,500 Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Changes in assets and liabilities: Increase (decrease) in miscellaneous receivables (25,860) 1,109 (24,751) (9,109) Increase in accounts payable and accrued liabilities - 7,435 7,435 823 Increase in estimated claims insurance - 232,044 232,044 93,016 Total adjustments 2( 5,860) 240,588 214,728 84,730 Net cash provided by operating activities 62,507 57,731 119,788 96,230 Cash Flows from Investing Activities: Investment income 6,274 45,776 52,050 30,010 Net cash provided by investing activities 6,274 45,776 52,050 30,010 Net increase in cash and cash equivalents 68,331 103,507 171,838 126,240 Cash and cash equivalents, Beginning 53,557 699,168 752,725 626,485 Cash and cash equivalents, Ending $121,888 $802,675 $924,563 $752,725 See notes to financial statements. -17- NOTES i TO FINANCIAL STATEMENTS MIAMI SHORES VILLAGE, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30 ,1995 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1. Reporting Entity Miami Shores Village (the "Village ") is a political subdivision of the State of Florida. The Village, which was incorporated in 1932, is located in Dade County. The Village operates under a Council- Manager form of government. The legislative branch of the Village is composed of a five (5) member elected Council, including an elected mayor. The Village Council is governed by the Village Charter and by state and local laws and regulations. The Village Council is responsible for the establishment and adoption of policy. The execution of such policy is the responsibility of the Council- appointed Village Manager. In accordance with generally accepted accounting principles, these financial statements present the government and its organizations for which the government is considered to be financially accountable. Financial accountability includes (1) the appointment of a voting majority of the organization's governing body, (2) the ability of the primary government to impose its will on the organization, or (3) if there is a financial benefit/burden relationship. In addition, an organization which is fiscally dependent on the primary government should be included in its reporting entity. As of September 30, 1995, there were no organizations that met the requirements described above. 2. Basis of Presentation The accompanying general purpose financial statements present the financial position, results of operations and cash flows of the applicable fund types and account groups of the Village in accordance with generally accepted accounting principles as prescribed by the Governmental Accounting Standards Board (GASB). The following is a summary of the more significant policies. The accounts of the Village are organized and operated on the basis of funds and account groups, each of which is considered a separate accounting entity, with a self - balancing set of accounts that comprise its assets, liabilities, fund equity, revenues and expenditures, or expenses as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The following funds and account groups are used by the Village: Governmental Fund Types The General Fund is used to account for all financial resources except those that are required to be accounted for in other funds. The General Fund is the primary operating fund of the Village. The Capital Projects Fund is used to account for financial resources to be used for the acquisition of equipment and construction of capital facilities. -18- MIAMI SHORES VILLAGE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 2. Basis of Presentation Proprietary Fund Types The Enterprise Fund is used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is for user charges to cover the costs of providing the service. The Village has one Enterprise Fund, the Stormwater Utility Fund. The Internal Service Fund is used to account for the financing of goods or services provided by one department to other departments of the Village, on a cost reimbursement basis. The self insurance fund is the only Internal Service Fund used by the Village. Fiduciary Fund Types The Trust Funds are used to account for assets held by the Village in a trustee capacity for individuals, private organizations, other governments and/or other funds. The Village has four expendable trust funds (the General Trust, Police Insurance Trust, Law Enforcement Training Trust, Police Forfeitures Trust), and a Pension Trust Fund. The Agency Fund is used to account for assets held in a trustee capacity or as an agent for government employees and /or other funds. The Village has one agency fund, the Deferred Compensation Fund. Account Groups These comprise a fourth category of accounting entities that are used to establish control and accountability over the Village's general fixed assets and the unmatured principal of its general long -term debt. Accordingly, the Village maintains a General Fixed Asset Account Group and a General Long -Term Debt Account Group. 3. Measurement Focus Governmental Fund Types The General Fund and Capital Projects Fund are accounted for on a current financial resources measurement focus rather than upon net income determination. This means that only current assets and current liabilities are generally included on the balance sheet with fund balance representing available spendable resources. Proprietary Fund Types The Village's Enterprise Fund and Internal Service Fund are accounted for on a flow of economic resources measurement focus. Accordingly, all assets and liabilities are included on the balance sheet, and the reported fund equity provides an indication of the economic net worth of the fund. -19- MIAMI SHORES VILLAGE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 3. Measurement Focus Fiduciary Fund Types Expendable Trust Funds are accounted for in a manner similar to that of governmental fund types. The Pension Trust Fund is accounted for in a manner similar to proprietary fund types. The Agency Fund is custodial in nature (assets equal liabilities) and does not involve measurement of results of operations. Account Groups The General Fixed Assets Account Group and General Long -Term Debt Account Group are concerned only with the measurement of financial position. They are not involved with the measurement of results of operations. Long -term indebtedness is accounted for in the General Long -Term Debt Account Group. Fixed assets are accounted for in the General Fixed Assets Account Group. 4. Basis of Accounting The basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. The basis of accounting relates to the timing of measurements made, regardless of the measurement focus applied. Governmental fund types are accounted for using the modified accrual basis of accounting. Under the modified accrual basis, revenues are recognized when they are susceptible to accrual, that is when they become both measurable and available as expendable financial resources. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period, which, for the Village's purpose, is considered to be 60 days. Revenues, such as taxes, intergovernmental revenues, charges for services, rents and interest, are treated as susceptible to accrual under the modified accrual basis. Expenditures are generally recognized when the related fund liability is incurred. Prepaid costs are recorded in the governmental fund types and are recorded as expenditures when used. The Proprietary fund types and the Pension Trust fund are accounted for using the accrual basis of accounting. Under this method, revenues are recognized when they are earned, and expenses are recognized in the period incurred. For proprietary funds, the Village has elected to follow all FASB pronouncements issued on or before November 30, 1989 except for those that are contradicted by a GASB pronouncement. The Village's Fiduciary fund types (Expendable Trusts and Agency Funds) are accounted for on the modified accrual basis. -20- MIAMI SHORES VILLAGE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 5. Deposits and Investments The Village maintains a pooled cash account for all funds except the Pension Trust Fund and Deferred Compensation Agency Fund. This enables the Village to invest large amounts of idle cash for short periods of time and to optimize earnings potential. Equity in pooled cash and cash equivalents represents the amount owned by each fund of the Village. Cash and investments held in the Village's Pension Trust Fund and Deferred Compensation Agency Fund are managed by trustees. Such amounts are reported separately on the Combined Balance Sheet -All Fund Types and Account Groups. All investments of the Village are recorded at cost except those investments in the Pension Trust Fund and Deferred Compensation Agency Fund which are reported at market value. Cash and cash equivalents which are cash and short-term investments with maturities of three months or less, includes cash on hand, demand deposits and investments with the State Board of Administration Investment Pool 6. Inventories Inventories are valued at cost determined on a first -in, first -out basis. Inventories in the General Fund consist of expendable supplies held for consumption. The initial cost is recorded as an asset at the time the individual inventory items are purchased and is charged against operations in the period when used (consumption method). 7. Fixed Assets Fixed assets used in Governmental fund types are recorded as expenditures at the time of purchase. Such assets are capitalized at historical cost in the General Fixed Assets Account Group. Public domain ( "infrastructure ") general fixed assets, consisting of roads, bridges, curbs and gutters, and lighting systems are not included in general fixed assets. Donated fixed assets are recorded in the General Fixed Assets Account Group at their fair market value at the date donated. Depreciation is not required and has not been provided on general fixed assets. 8. Compensated Absences Village employees are granted vacation and sick leave in varying amounts based on length of service and the department which the employee services. Such compensated absences are recorded in accordance with GASB Statement N416. The Village's sick leave policy is to permit employees to accumulate earned but unused sick pay benefits. Sick leave is accrued and reported as a fund liability when it is probable that the Village will compensate the employee in the following fiscal year through cash benefits conditioned on the employee's termination or resignation. The remaining accumulated sick leave balance is accounted for in the General Long -Term Debt Account Group. yde MIAMI SHORES VILLAGE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 8. Compensated Absences The Village's vacation policy is that earned vacation must be taken within one year of the employee's anniversary date as there is no carryover from one period to another. Unused vacation pay, if any, is paid with the employee's termination or retirement. Those amounts estimated to be liquidated with expendable available financial resources are reported as an expenditure and a fund liability of the appropriate fund. 9. Deferred Revenues Revenues collected in advance are deferred and recognized as income in the period earned. In the General Fund, deferred revenues consist of Federal Emergency Management Agency (FEMA) grant funds received in advance and not expended, prepaid occupational licenses and refuse collection fees received that have been budgeted to pay expenditures of the subsequent fiscal year. 10. Encumbrances Encumbrances are recorded at the time a purchase order or other commitment is entered into. Encum- brances outstanding at year -end, if any, represent the estimated amount of expenditures to result if unperformed purchase orders and other commitments at year -end are completed. Appropriations lapse at year -end; however, the Village generally intends to honor purchase orders and other commitments in process. As a result, encumbrances outstanding at year -end are reported as reservations of fund balance since they do not constitute expenditures or liabilities. 11. , "a Reserves and Designations Fund balances are reserved to indicate that a portion of fund balance /retained earnings is not available for appropriation or is legally segregated for a specific future use. The description of each reserve indicates the purpose for which each was intended. Designated fund balance indicates that a portion of fund equity has been segregated based on tentative plans of the Village. Such plans or intent are subject to change. Unreserved undesignated fund balance is the portion of fund equity available for any lawful use. 12. Property Taxes Property taxes are assessed as of January 1 each year and are first billed (levied) and due the following November 1. -22- MIAMI SHORES VILLAGE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 12. Property Taxes 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 mils ($10 per $1,000). The millage rate assessed by the Village for the year ended September 30, 1995 was $8.66 per $1,000 of assessed taxable valuation. The tax levy of the Village is established by the Village Council prior to October 1 each year, and the County Property Appraiser incorporates the millage into the total tax levy, which includes Metropolitan Dade County, Dade County School Board and special taxing districts. All property is reassessed according to its fair market value as of January 1 each year. Each assessment roll is submitted to the Executive Director of the State Department of Revenue for review to determine if the 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 assessmentroll is certified by the County Property Appraiser. Metropolitan Dade County mails to each property owner on the assessment roll a notice of the taxes due and Metropolitan Dade County also collects the taxes for the Village. Taxes may be paid upon receipt of such notice from Metropolitan Dade County, with discounts at the rate of four percent (4 %) if paid in the month of November, three percent-(3 %) if paid in the month of December, two percent (2 %) if paid in the month of January and one percent (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 taxes were assessed. Procedures for the collection of delinquent taxes by Metropolitan Dade County are provided for in the laws of Florida. 13. Budget and Budgetary Accounting Annual appropriated budgets are adopted for the General Fund and the Capital Projects Fund. The budget allocations among the various organizational units are included in the Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual. The Village follows these procedures in establishing the budgetary data reflected in the financial statements. (a) The Village Manager submits to the Council a proposed operating budget for the ensuing fiscal year. The operating budget includes proposed revenues and expenditures with an explanation regarding each expenditure that is not of a routine nature. -23- MIAMI SHORES VILLAGE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 13. Budget and Budgetary Accounting (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) The Village Council, by motion, may make supplemental appropriations for the year up to the amount of revenues in excess of those estimated. (e) Formal budgetary integration is employed as a management control device during the year for the General Fund and Capital Projects Fund. (f) Budgets for the General Fund and Capital Projects Fund are adopted on a basis consistent with generally accepted accounting principles (GAAP). (g) The Village 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 Village Council. The classification detail at which expenditures may not legally exceed appropriations is at the department level. (h) Unencumbered appropriations lapse at fiscal year end. Encumbered amounts are reappropriated in the following year's budget. (i) Budgeted amounts are as originally adopted or as amended. Individual type amendments were not material in relation to the original appropriations. 14. Reclassifications /Comparative Data Certain amounts in the September 30, 1994 columns have been reclassified to conform to September 30, 1995 presentation. Comparative total data for the prior year has been presented in selected sections of the financial statements to provide an understanding of changes in the Village's financial position and operations. 15. Memorandum Only Total Columns Total columns on the combined statements which are captioned "Memorandum Only" aggregate the columnar amounts presented by fund type and account group and are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or cash flows in conformity with generally accepted accounting principles nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. -24- MIAMI SHORES VILLAGE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 2. DEPOSITS AND INVESTMENTS As of September 30, 1995, the Village maintained deposits with bank balances of $4,085,073. This amount includes the balance held at the State Board of Administration of $3,873,996. In addition to insurance provided by the Federal Depository Insurance Corporation (FDIC), all deposits are held in banking institutions approved by the State Treasurer of the State of Florida to hold public funds. Under Florida Statutes Chapter 280, Florida Security for Public Deposits Act, the State Treasurer requires all Florida qualified public depositories to deposit with the Treasurer or another banking institution eligible collateral equal to 50% to 125% of the average daily balance for each month of all public deposits in excess of any applicable deposit insurance held. The percentage of eligible collateral (generally in the form of U.S. Government and agency securities, state or local government debt, or corporate bonds) to public deposits is dependent upon the depository's financial history and its compliance with Chapter 280. In the event of a failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses. The investment at the State Board of Administration Investment Pool is not subject to risk categorization. Accordingly, all amounts reported as cash and cash equivalents are deemed as insured and are, therefore, not subject to classification by credit risk category under the provisions of GASB Statement N4 3. Village administration is authorized to invest in those instruments authorized by the Florida statutes. The Pension Trust Fund is authorized to invest in equities, preferred stocks rated A or better by Moody's and/or Standard & Poor's, corporate debt securities rated BBB or better from Standard & Poor's and/or Baa or better from Moody's, obligations of the U.S. Government and its fully guaranteed agencies and debt issues convertible to equities. Investments are classified as to credit risk which are summarized below: Category 1 Insured or collateralized with securities held by the Village or its agents in the Village's name. Category 2 Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the Village's name. Category 3 Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Village's name. -25- MIAMI SHORES VILLAGE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 2. DEPOSITS AND INVESTMENTS At year end, the Village's investment balances were as follows: Category Carrying Market 1 2 3 Value Value U.S. Treasury Bill $65,000 $ $ - $ 65,000 $ 65,000 Investments not subject to categorization: Common Stock Trust Fund 6,379,098 6,379,098 Pool 4,459,549 4,459,549 Bond Trust Fund Pool 1,037,199 1,037,199 Deferred Compensation Plan $11,940,846 $11,940,846 Total investments NOTE 3. FIXED ASSETS The following is a summary of changes in general fixed assets during the fiscal year: Balance Balance September 30, September 30, 1994 Additions Deletions 1995 Land $ 718,531 $ - $ - $ 718,531 Buildings 2,096,870 31,686 - 2,128,556 Improvements other than buildings 1,779,709 160,772 - 1,940,481 Equipment 2,714,265 619,895 195,350 3,138,810 Total $7,309,375 $812,353 $195,350 $7,926,378 Depreciation is not required and has not been provided on general fixed assets. -26- MIANU SHORES VILLAGE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 4. GENERAL LONG -TERM DEBT Changes in general long -term debt during the year are summarized as follows: Balance September 30, 1994 Additions Deletions Bonds payable $260,975 $ - $ 58,432 Accrued workers compensation 260,068 40,153 61,339 Accrued sick leave 223,763 86,336 105,242 Other 5,000 $749,806 $126,489 $225,013 NOTE 5. BONDS PAYABLE Balance September 30, 1995 $202,543 238,882 204,857 . 5,000 $651,282 During the fiscal year ended September 30, 1991, the Village issued capital improvement revenue bonds of $443,782, the proceeds of which were used for the acquisition of equipment and construction of certain public improvements. The Village has pledged certain utility service tax revenues to secure payment of the principal and interest on the bonds. The bonds are due in annual installments of $77,744 which includes interest at 7.4% through October 1, 1997. The annual requirements for repayment of the bonds as of September 30, 1995, are as follows: Fiscal year ending Principal Interest Total September 30: 1996 $ 62,756 $14,988 $ 77,744 1997 67,400 10,344 77,744 1998 72,387 5,357 77,744 $202,543 $30,689 $233,232 -27- MIAMI SHORES VILLAGE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 6. DEFERRED COMPENSATION PLAN The Village offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all Village employees, permits them to defer a portion of their salary until future years. The deferred compensation plan is not available to employees until termination, retirement, death or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the Village (without being restricted to the provisions of benefits under the plan), subject only to the claims of the Village's general creditors. Participants' rights under the plan are equal to those of general creditors of the Village in an amount equal to the fair market value of the deferred account for each participant. It is the opinion of management that the Village has no liability for losses under the plan but does have the fiduciary duty that would be required of an ordinary prudent investor. The Village believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. Included in the trust and agency funds on the combined balance sheet is $1,037, 199 of funds recorded at market value for future payments of plan benefits. NOTE 7. COMMITMENTS AND CONTINGENCIES 1. Legal Matters The Village has several claims arising in the ordinary course of operations pending against the Village. In the opinion of legal counsel and management of the Village, the liabilities which may arise from such actions would not result in losses which would materially affect the financial position or the results of operations of the Village. 2. Workers Compensation The Village has a commitment to Dade County for a prior workers compensation claim for $279,035 as of September 30, 1995. The current portion of this claim is $40,153, which is recorded in the General Fund. The long -term portion of $238,882 is accounted for in the General Long -Term Debt Account Group. Semi -annual payments are made by the Village to Dade County Risk Management. K-11 MIAMI SHORES VILLAGE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 7. COMMTMENTS AND CONTINGENCIES 3. Post Retirements Benefits Plan Description The Village provides postretirement health benefits, per the requirements of the agreement between the Village and the Dade County Police Benevolent Association. Police officers who retire and begin receiving benefits from the Village's Pension Plan on or after October 1, 1991 are eligible to receive a monthly benefit of up to $100 to defray the cost of health insurance coverage for the retiree. Only those police officers who retire under the provisions of the Village's Pension Plan with at least 25 years of creditable service, or who are granted a disability benefit under the provisions of the Village's Pension Plan, are eligible for the retiree health benefit. Eligible retired police officers receive the retiree health benefit until they become eligible for medicare benefits, at which time the Village retiree health benefit will cease. Benefit payments are made by the employer directly to an insurance carrier or health benefit program on behalf of the eligible retired police officer. If the retired police officer is covered by any other insurance or health benefit program, the Village retiree health benefit will be secondary to any and all other insurance or benefit programs. If the actual cost of the retired police officer's participation in such other insurance or benefit program is less than one $100 per month, the Village retiree health benefit payable is the actual cost of such insurance or benefit program. The Village and police officers share the cost of establishing and maintaining the retiree health benefit on a 50150 basis. The total cost of the retiree health benefit is determined by periodic actuarial review. The employee contribution was $4.21 per employee per week, payable by payroll deduction during the year ended September 30, 1995. Employee and Employer contributions are adjusted based on periodic actuarial review. Employee contributions to the retiree health benefit fund are refundable to the employee if the employee terminates Village employment after contributing to the retiree health benefit fund for ten (10) or more years. Any employee who receives a refund of contributions from the retiree health benefit fund is not eligible to receive a retiree health benefit. Accounting and Financing As of fiscal year end, there were 30 eligible participants. The Village contributions are advance- funded from the General Fund on an actuarially determined basis. The actuary uses the aggregate cost method based on the assumptions of an interest rate of 8% and salary increases of 6 %, which are consistent with the pension plan. Total contributions for the year were approximately $10,000 including employee contributions. As of September 30, 1995, the Plan had net assets of approximately $31,000 available for benefits and no liabilities. -29- MIAMI SHORES VILLAGE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 7. COMMITMENTS AND CONTINGENCIES 4. NOTE 8. 1. Contingent Liabilities The Village, which participated in various federal and state programs, was not required to have a single audit pursuant to provisions of Circular A -128 for the fiscal year ended September 30, 1995. However, single audits were performed on federal and state programs in prior years which tested compliance with applicable grant requirements. While no matters of noncompliance were disclosed, federal and state agencies may subject grant programs to additional compliance tests which may result in disallowed expenditures. In the opinion of management, future disallowances of current grant program expenditures, if any, would be not be material. EMPLOYEE RETIREMENT SYSTEM Plan Description The Village is the administrator of a single- employer Public Employee Retirement System (PERS) established by the Village to provide pension benefits for its employees. The PERS is considered to be part of the Village's financial reporting entity and is included in the Village's financial statements as a pension trust fund. The latest available actuarial valuation is as of October 1, 1994. The Village's total payroll for all employees was $4,136,073-for the year ended September 30, 1995. The covered payroll represents all compensation paid to active employees covered by the PERS on which contributions are made. Covered Annual Payroll General $1,582,078 Police 1,338,121 $2 92 General Police Number of members included in Plan: Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving them 37 8 Current Employees: Fully vested 23 16 Non - vested 34 13 94 37 The Village provides all employee retirement benefits through a single- employer defined benefit plan. Under the plan, all full -time, permanent employees upon completion of one year of credited service are eligible. General employees who retire at or after age 62 are entitled to a retirement benefit of 2% of final average compensation times years of service to a maximum of 30 years. -30- MIAMI SHORES VILLAGE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 8. EMPLOYEE RETIREMENT SYSTEM 1. Plan Description Prior to July 1, 1989, for police employees who terminated or retired with 25 years or more of service, regardless of age, the retirement benefit was 2% for the first 25 years of service and 2' /z% for years over 25 to a maximum of 30 years. Subsequent to July 1, 1989, the retirement benefit for the first 25 years has been increased to 2.4 %. Subsequent to October 1, 1992, the retirement benefit for the first 15 years of credited service is 2.4 %; plus 2.7% for the next ten years of service; plus 2.5% in excess of 25 years (maximum of 3 0 years). Subsequent to October 1, 1993, the retirement benefit for the first ten years of credited service is 2.4 %; plus 2.7% for the next 15 years; plus 2.5% in excess of 25 years (maximum of 30 years). Final average compensation is the employee's average of the highest 36 consecutive months of compensation during the ten years immediately preceding retirement or termination. Subsequent to September 30, 1994, the retirement for the first 5 years of credited service is 2.4 %, plus 2.7% for the next 20 years; plus 2.5% in excess of 25 years (maximum of 30 years); plus 2% of monthly final compensation multiplied by the number of years of creditable service over 39.25 years. Employees are vested after 10 years of service. Vested general employees may retire at or after age 62. Vested police employees may retire upon completion of 25 years of credited service. Early retirement for general employees is at age 55 after 15 or more years of service with reduced retirement benefits. Benefits are established by the pension board and may be amended only by the Village Council. General employees and police officers are required to contribute 6% and 9 %, respectively, of their salaries to the PERS. If an employee leaves covered employment or dies before ten years of service, accumulated employee contributions with 3% per annum interest are refunded. The Village is required to contribute the remaining amounts necessary to finance the coverage for its employees. Village contributions are established by Village charter not to exceed one mil and may be amended only by special referendum. 2. Summary of Significant Accounting Policies Basis of Accounting PERS financial statements are prepared using the accrual basis of accounting. Employee and employer contributions are recognized as revenues in the period in which employee services are performed. Method Used to Value Investments Investments of the pension fund are reported at market and unrealized appreciation and depreciation due to market fluctuations are reflected in the financial statements as investment earnings or losses. Investment income is recognized as earned. -31- MIAMI SHORES VILLAGE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 8. EMPLOYEE RETIREMENT SYSTEM 3. Funding Status and Progress The amount shown below as "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases estimated to be payable in the future as a result of employee service to date. The measure is the actuarial present value of credited projected benefits and is intended to help users assess the Village's PERS funding status on a going- concern basis, assess progress made in accumulating sufficient assets to pay benefits when due and make comparisons among PERS. The measure is independent of the actuarial funding method used to determine contributions to the PERS. The pension benefit obligation was determined as part of an actuarial valuation performed as of October 1, 1994. General Police Total Pension Benefit Obligation: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $1,643,727 $1,706,205 $3,349,932 Current employees: Accumulated employee contributions including allocated investment earnings 656,190 926,802 1,582,992 Employer financed vested 958,086 2,904,737 3,862,823 Employer financed non - vested 17,859 254,387 272,246 Total pension benefit obligation 3,275,862 5,792,131 9,067,993 2:- Net assets available for benefits, at market 4,188,515 5,192,363 9,380,878 Assets in excess of (unfunded) pension benefit obligation $ 91, 2,653 $ 599768 $ 312,885 Financial effect on the pension benefit obligation of changes in: Actuarial assumptions /plan amendments NONE NONE Benefit provisions NONE $94,702 Significant actuarial assumptions used in the valuation: Rate of return on the investment of present and future assets per year 8.0% 8.0% Projected salary increases per year due to: Inflation increases 4.0% 4.0% Merit or seniority increases 2.5% 2.5% -32- MIAMI SHORES VILLAGE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 8. EMPLOYEE RETIREMENT SYSTEM 4. Contributions Required and Contributions Made The Village's funding policy provides for periodic employer contributions at actuarially determined rates that, expressed as percentages of annual covered payroll, are designed to accumulate sufficient assets to pay benefits when due. The required contributions are determined using the entry age actuarial cost method. The minimum contribution consists of the normal cost plus the amortization of the components of the unfunded actuarial accrued liability that should provide sufficient resources to pay employee pension benefits when due. The contributed amounts were actuarially determined based on an actuarial valuation as of October 1, 1994. Total contributions to the pension plan during 1995 amounted to $450,744. A breakdown of the contribution is as follows: The General Employees and Police plans both use the level dollar method to amortize the unfunded liability over a 30 year period. The difference between the actual contribution and the actuarially determined contribution is the result of higher than expected contributions by the Village, its employees and the amount received from the State for its share for police pension costs. The actuarial assumptions used to compute pension contribution requirements are the same as those used to determine the standardized measure of the pension obligation. The computation of the pension contribution requirements for fiscal year ended September 30, 1995 was based upon the same actuarial assumptions, benefits provision, except as provided on the previous page, actuarial funding method and other significant factors used to determine the pension contribution requirements in the previous year. -33- General Police Percentage Percentage of Covered of Covered Contribution Payroll Contribution Payroll Contribution Requirements: Normal Cost $168,797 10.7% $244,387 18.3% Unfunded actuarial accrued liability 270,275 17.1 117,136 8.8 $439,072 27.8% $361,523 27.1% Contributions Made: Village $ 9,636 .6% $216,208 16.1% Employees 85,987 5.4 116,642 8.7 State - _ 22,271 1.7 $95,623 6.0% $355,121 26.5% The General Employees and Police plans both use the level dollar method to amortize the unfunded liability over a 30 year period. The difference between the actual contribution and the actuarially determined contribution is the result of higher than expected contributions by the Village, its employees and the amount received from the State for its share for police pension costs. The actuarial assumptions used to compute pension contribution requirements are the same as those used to determine the standardized measure of the pension obligation. The computation of the pension contribution requirements for fiscal year ended September 30, 1995 was based upon the same actuarial assumptions, benefits provision, except as provided on the previous page, actuarial funding method and other significant factors used to determine the pension contribution requirements in the previous year. -33- MIAMI SHORES VILLAGE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 8. EMPLOYEE RETIREMENT SYSTEM 5. Trend Information Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Three -year trend information for the years ended September 30, (valuation date is as of beginning of fiscal year) is presented as follows (in thousands): General 1995 1994 1993 1. Net assets available for benefits * $4,189 $4,394 $4,093 2. Pension benefit obligation 3,276 3,227 2,944 3. Percentage funded (1 _ 2) 127.9 % 136.1% 136.7% 4. Assets in excess of pension 89.6% 93.3% 96.5% benefit obligation (2 - 1) 913 1,167 1,098 5. Annual covered payroll 1,582 1,676 1,498 6. Assets in excess of pension 1,438 6. (Unfunded) pension benefit obligation as a benefit obligation as a percentage of covered payroll (4 _ 5) 57.7% 66.6% 73.3% 7. Employer contributions as a Employer contributions as a percent- percentage of annual covered payroll. .6% .9% 1.0% * At market value. Ten -year historical trend information for the PERS presenting the progress in accumulating sufficient assets to pay benefits when due is presented in the accompanying required supplementary information. -34- Police 1995 1994 1993 1. Net assets available for benefits* $5,192 $5,146 $ 4,563 2. Pension benefit obligation 5,792 5,516 4,730 3. Percentage funded (1 _ 2) 89.6% 93.3% 96.5% 4. Unfunded benefit obligation (2 - 1) (600) (370) (166) 5. Annual covered payroll 1,338 1,435 1,438 6. (Unfunded) pension benefit obligation as a percentage of covered payroll (4 - 5) (44.8)% (25.8)% (11.5)% 7. Employer contributions as a percent- age of annual covered payroll. 16.1% 13.8% 13.5% * At market value. Ten -year historical trend information for the PERS presenting the progress in accumulating sufficient assets to pay benefits when due is presented in the accompanying required supplementary information. -34- MIANII SHORES VILLAGE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 9. RISK MANAGEMENT The Village is exposed to various risks of loss related to torts, theft, damage to and destruction of assets, errors and omissions and natural disasters. The maximum risk of loss for the Village is $350,000; thereafter the Village carries commercial insurance. Florida law limits the liability in any one claim or judgement not to exceed $100,000 and in each occurrence not to exceed $200,000. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNR's). Claim liabilities are calculated considering the recent claim settlement trends. The liability for claims is reported in the Internal Service Fund. Changes in the balances of claims liabilities during the past year are as follows: Unpaid claims, September 30, 1994 $ 422,448 Incurred claims (including IBNR's) 399,561 Claim payments (167,517 Unpaid claims, September 30, 1995 $_65 NOTE 10. BUDGET /GAAP RECONCILIATION The fol lowing schedule reconciles the amounts on the combined statements of revenues, expenditures and changes in fund balance - budget to actual to the amounts on the combined statement of revenues, expenditures and changes in fund balances. Excess of revenues and other financing sources over expenditures (budgetary basis) Accrual for compensated absences Excess of revenues and other financing sources over expenditures (GAAP basis) -35- $274,420 171.624 $10 General MIAMI SHORES VILLAGE, FLORIDA EMPLOYEES RETIREMENT SYSTEM REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES BY SOURCE AND EXPENSES BY TYPE Revenues by Source Year ended September 30, 1995 1994 1993 1992 1991 1990 1989 Expenses by Type Benefits Payments and Refunds $243,608 217,050 171,965 185,130 156,190 179,529 165,995 Administrative and General $42,505 40,209 39,896 54,881 66,866 67,290 46,072 Total $286,113 257,259 211,861 240,011 223,056 246,819 212,067 (1) Contributions were made in accordance with actuarially determined contribution requirements. (2) Employer contributions as a percentage of covered payroll. (3) Ten years of information is unavailable. -36- Percentage Contributions (1) Year ended of Covered Investment September 30, Payroll (2) Employer Employee Earnings Total 1995 .6% $ 9,636 $ 85,987 $802,190 $ 897,813 1994 .9 21,116 93,839 (51,344) 63,611 1993 1.0 16,960 110,571 389,991 517,522 1992 5.9 79,083 81,893 356,816 517,792 1991 5.2 65,460 79,296 523,343 668,099 1990 4.2 65,460 59,137 (302,900) (178,303) 1989 10.1 164,666 115,041 454,326 734,033 Year ended September 30, 1995 1994 1993 1992 1991 1990 1989 Expenses by Type Benefits Payments and Refunds $243,608 217,050 171,965 185,130 156,190 179,529 165,995 Administrative and General $42,505 40,209 39,896 54,881 66,866 67,290 46,072 Total $286,113 257,259 211,861 240,011 223,056 246,819 212,067 (1) Contributions were made in accordance with actuarially determined contribution requirements. (2) Employer contributions as a percentage of covered payroll. (3) Ten years of information is unavailable. -36- MIAMI SHORES VILLAGE, FLORIDA EMPLOYEES RETIREMENT SYSTEM REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES BY SOURCE AND EXPENSES BY TYPE Police Expenses by Type Benefits Year Ended Payments and September 30, Refunds 1995 1994 1993 1992 1991 1990 1989 $203,506 202,699 137,704 59,590 63,179 37,234 86,130 Administrative and General $52,690 47,091 46,730 57,121 27,047 27,219 23,906 Total $256,196 249,790 184,434 116,711 90,226 64,453 110,036 (1) Contributions were made in accordance with actuarially determined contribution requirements. (2) Employer contribution as a percentage of covered payroll. (3) Ten years of information is unavailable. -37- Revenues by Source Percentage Contributions (1) Year ended of Covered Investment September 30, Payroll (2) Employer Employee State Earnings Total 1995 16.1% $216,208 $116,642 $22,271 $1,006,184 $1,361,305 1994 13.8 193,596 119,829 22,157 (61,755) 273,827 1993 13.5 193,596 124,702 24,201 434,870 777,369 1992 10.3 137,960 125,321 21,528 397,855 682,664 1991 11.8 135,559 110,414 20,599 531,235 797,807 1990 8.2 85,010 75,226 23,028 (307,468) (124,204) 1989 17.2 194,052 79,149 21,386 417,516 712,103 Expenses by Type Benefits Year Ended Payments and September 30, Refunds 1995 1994 1993 1992 1991 1990 1989 $203,506 202,699 137,704 59,590 63,179 37,234 86,130 Administrative and General $52,690 47,091 46,730 57,121 27,047 27,219 23,906 Total $256,196 249,790 184,434 116,711 90,226 64,453 110,036 (1) Contributions were made in accordance with actuarially determined contribution requirements. (2) Employer contribution as a percentage of covered payroll. (3) Ten years of information is unavailable. -37- MIAMI SHORES VILLAGE, FLORIDA PENSION FOR GENERAL AND POLICE EMPLOYEES REQUIRED SUPPLEMENTARY INFORMATION ANALYSIS OF FUNDING PROGRESS (IN THOUSANDS) Analysis of the dollar amounts of net assets available for benefits, pension benefit obligation, and unfunded pension benefit obligation in isolation can be misleading. Expressing the net assets available for benefits as a percentage of the pension benefit obligation provides one indication of the Village's funding status on a going- concern basis. Analysis of this percentage over time indicates whether the system is becoming financially stronger or weaker. Generally, the greater this percentage the stronger the PERS trends in unfunded pension benefit obligation and annual covered payroll are both affected by inflation. Expressing the unfunded pension benefit obligation as a percentage of annual covered payroll adjusts for the effects of inflation and aids analysis of the Village's progress made in accumulating sufficient assets to pay benefits when due. Generally, the smaller this percentage the stronger the PERS. At market value Note: Ten -year information was not available Note: Prior to 10/1/90 valuation was prepared as of January 1. -38- Assets In Assets In Excess of Excess of (Unfunded) (Unfunded) Pension Net Assets Pension Pension Annual Benefit Obligation Valuation Available Benefit Percentage Benefit Covered as a Percentage Date for Benefits* Obligation Funded Obligation Payroll of Covered Payroll 01/1/88 $5,298 $5,250 100.9% $ (48) $2,635 (1.8)% 01/1/89 6,158 6,194 99.4 36 2,756 1.3 01/1/90 7,282 5,482 132.8 (1,800) 2,605 (69.1) 10 /1/90 6,668 5,758 115.8 (910) 2,398 (37.9) 10/1/91 7,834 6,279 124.8 1,555) 2,667 (58.3) 10/1/92 8,656 7,724 112.1 (932) 2,936 (31.8) 10/1/93 9,539 8,743 109.1 (797) 3,111 (25.6) 10/1/94 9,381 9,068 103.5 (313) 2,920 (10.7) Analysis of the dollar amounts of net assets available for benefits, pension benefit obligation, and unfunded pension benefit obligation in isolation can be misleading. Expressing the net assets available for benefits as a percentage of the pension benefit obligation provides one indication of the Village's funding status on a going- concern basis. Analysis of this percentage over time indicates whether the system is becoming financially stronger or weaker. Generally, the greater this percentage the stronger the PERS trends in unfunded pension benefit obligation and annual covered payroll are both affected by inflation. Expressing the unfunded pension benefit obligation as a percentage of annual covered payroll adjusts for the effects of inflation and aids analysis of the Village's progress made in accumulating sufficient assets to pay benefits when due. Generally, the smaller this percentage the stronger the PERS. At market value Note: Ten -year information was not available Note: Prior to 10/1/90 valuation was prepared as of January 1. -38- The General Fund is the principal fund of the Village and is used to account for resources traditionally associated with governments which are not required to be accounted for in another fund. l_ i MIAMI SHORES VILLAGE, FLORIDA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL FISCAL YEAR ENDED SEPTEMBER 30, 1995 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR END SEPTEMBER 30, 1994) Budgetary Variance Basis Favorable Budget Actual (Unfavorable) 1995 Revenues: Taxes: General property taxes, current and delinquent Franchise taxes Utility taxes Total taxes Licenses and Permits: Business licenses Building permits Other licenses and permits Total licenses and permits Intergovernmental Revenues: State shared revenues: Cigarette > taxes State revenue sharing Beverage licenses Local governmental half cent sales tax Department of transportation (landscape maintenance) Local option gas tax trust County Shared Revenue: County occupational licenses School crossing programs Recycling grant Total intergovernmental revenues Charge for Services: Public safety Physical environment Transportation Culture /recreation Total charges for services Fines and Forfeitures: Court fines and costs Other Total fines and forfeitures Miscellaneous Revenue: Donations Rents Other revenue Total miscellaneous revenue Interest Total revenues -41- Budgetary Basis Actual 1994 $2,824,355 $2,789,222 $(35,133) $2,673,082 478,000 475,152 (2,848) 479,610 864,900 887,209 22,309 892,075 4,167,255 4,151,583 (15,672) 4,044,767 57,500 61,917 4,417 47,146 85,000 91,240 6,240 115,274 20,000 22,121 2,121 20,005 162,500 175,278 12,778 - 182,425 12,500 11,881 (619) 12,033 229,686 241,310 11,624`' 233,234 1,600 1,273 (327) 3,222 463,183 489,798 26,615 475,095 17,318 17,318 - 17,318 290,131. 280,870 (9,261) 232,132 16,100 29,944 13,844 32,197 8,200 11,564 3,364 8,286 13,547 13,547 12,859 1,038,718 1,097,505 58,787 1,026,376 190,010 198,636 8,626 139,518 1,547,408 1,467,675 (79,733) 1,448,292 14,000 10,558 (3,442) 9,866 226,952 225,882 (1,070) 192,717 1,978,370 1,902,751 (75,619 1,790,393 65,000 86,595 21,595 66,314 89,500 118,106 28,606 89,612 154,500 204,701 50,201 155,926 1;800 2,930 1,130 2,425 147,544 150,541 2,997 157,876 131,016 160,188 29,172 423,999 280,360 313,659 33,299 584,300 68,000 119,660 51,660 71,417 $7,849,703 $7 96 $ 115,434 $7 855 604 ontmue ) MLAMI SHORES VILLAGE, FLORIDA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL (Continued) FISCAL YEAR ENDED SEPTEMBER 30 1995 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1994) Budgetary Variance Basis Favorable Budget Actual (Unfavorable) 1995 Expenditures: Current: General Government: Village Council: Personnel services Operating expenses Village Attorney,: Personnel services Operating expenses Village Manager: Personnel services. Operating expenses Capital outlay Financse: Personnel services Operating expenses Capital outlay Marketing: Personnel services Operating expenses Capital outlay Other General Government Services Non - departmental: Personnel Services Operating expenses Non - operating expenses Capital outlay Human Resources: Personnel services Operating expenses Total general government Public Safety: Law enforcement: Personnel services Operating expenses Capital outlay Building and Zoning: Personnel services Operating expenses Capital outlay Code Enforcement: Personnel services Operating expenses Capital outlay Total public safety -42- $ 5 1,500 102.960 159,033 17,306 4.561 162,320 50,641 7.058 27,384 5 7, 824 5 362 5,360 201,350 116,735 62,026 41 692 1,032,670 2,485,791 179,854 TOT 87,042 60,144 1.681 90,176 1 '600 2,949,564 $ 1✓ 6,967 1,5001 8-82,386 158 ✓ ,780 16,583 162 ' ,121 49,667 0 25,490 29,132 58,,683 5,358 V/ 201,066 16,100 61,004/ 35T 861,313 J 2,440,489 174,237 2,614,72 86,083 47,660 89,496 12,919 -iU2,415 2,851,115 $ 4 25 7 22,074 723 1638 974 5 06 1,894 28,692 1.301 284 100,635 1,022 4.145 171,357 45,302 5,617 27.000 959 12,913 1.021 680 4,357 600 98,449 Budgetary Basis Actual 1994 $ 5 x'07'7 1,500 6 171,686 21,465 5.143 160,476 54,725 -=, U I 20,460 7,863 5,168 340,962 12,610 363',051 874,672 2,348,821 239,188 13.949 150,031 X737 2,795,714 ' (Continued) MIAMI SHORES VILLAGE, FLORIDA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL (Continued) FISCAL YEAR ENDED SEPTEMBER 30 1995 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1994) Budgetary Variance Budgetary Basis Favorable Basis Budi et Actual (Unfavorable) Actual 1995 1994 Public services: Public works administration: Personnel services $ 198,932 $ 198,368 $ 564 $ 148,687 Operating expenses Capital outlay 26,273 20.086 24,466 1,807 19,183 161241 - $ Street maintenance: Personnel services 126,233 112,266 13,967 261,154 Operating expenses Capital outlay 234,584 306.568 220,102 143.143 14,482 16�,$2� 231,092 119,974 Solid waste collection: Personnel services 595,899 593,747 2,152 571,259 Operating expenses Capital outlay 615,731 19,8 2 556,215 17.519 59,516 -7= 608,623 TT�390 Motor Pool:- Personnel services 128,409 121,339 7,070 - Operations expenses Capital outlay 61,641 4.300 60,812 T8:3T 829 89 - _ Total public services 2,336,888 2,049,180 287,708 1,970,318 Culture /recreation: Parks: Personnel services 226,465 213,890 12,575 233,822 Operating expenses 90,116 900 67,933 22,183 194,692 13,0311 Capital outlay X480,3 -3S4 18 Recreation: - Personnel" services 504,334 485,406 18,928 461,734 Operating expenses 231,089 1,920 200,334 1,920 30,755 - 198,521 1,800 Non - operating expenses Capital outlay -7t& 6,,-M32 3 30688 73,'097 15.585 Recreation Maintenance: Personnel services 82,880 82,161 719 73,151 Operating expenses Capital outlay 25;820 12.300 121,UOU 22,486 3,334 1334 24,274 98,831 Library: Personnel services 174,900 34,024 174,538 33,827 362 197 162,723 29,114 Operating expenses Capital outlay 356 2 40 32,399 T 2 Total culture /recreation 1,460,591 1,331,682 128,909 1,437,683 Debt Service: Principal retirement 18,931 18,931 - 374,669 14,185 Interest 6,257 6,257 - Total debt service 25,188 25,188 388,854 Total expenditures $7,804,901 $7,118,478 $ 686,423 $7,467,241- -43- CAPITAL PROJECTS FUND MIAMI SHORES VILLAGE, FLORIDA CAPITAL PROJECTS FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 1995 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1994) ASSETS Cash and cash equivalents Prepaid costs Total assets LIABILITIES AND FUND BALANCE Liabilities: .Accounts payable Total liabilities Fund Balance: Reserved for: Prepaid costs Encumbrances Recreation Department Unreserved: Designated for capital outlay Total fund balance Total liabilities and fund balance -44- 1995 1994 $484,731 $507,718 52,556 52,556 $537,287 $560,274 $ 4,449 $ 3,885 4,499 3,885 52,556 52,556 195,583 139,894 191,309 116,890 93,340 247,049 532,788 556,389 $537,287 $560,274 MIAMI SHORES VILLAGE, FLORIDA CAPITAL PROJECTS FUND COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES AND' CHANGES IN FUND BALANCE FISCAL YEAR ENDED SEPTEMBER 30, 1995 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1994) Revenues: Interest Total revenues Expenditures: Current: General government Public safety Public service Culture /recreation Debt Service: Principal retirement Interest Total expenditures Deficiency of revenues over expenditures Other Financing Sources: Operating transfers in Excess (deficiency) of revenues and other financing sources over expenditures Fund balance, Beginning Fund balance, Ending -45- 1995 1994 $ 41,396 $ 25,364 41,396 25,364 33,208 7,667 116,543 2,977 326,793 151,373 108,136 73,933 42,423 63,867 10,133 22,382 637,236 322.199 (595,840) (296,835) 572,239 417,736 (23,601) 120,901 556,389 435,488 $ 532,788 $ 556,389 MIAMI SHORES VILLAGE, FLORIDA ENTERPISE FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 1995 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1994) ASSETS 1995 1994 Cash and cash equivalents $121,888 $ 53,557 Due from other governments 52,860 27,000 Total assets $174 $80,557 FUND EQUITY Fund Equity: Retained earnings $174,748 $80,557 Total fund equity $174,748 $80,557 -46- MIANH SHORES VILLAGE, FLORIDA ENTERPRISE FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS FISCAL YEAR ENDED SEPTEMBER 30, 1995 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1994) 1995 1994 Charges for services $134,237 $127,341 Operating Expenses: Personnel expenses 28,818 28,818 Administrative and general 17,502 28,626 Total operating expenses 46,320 57,444 Operating income 87,917 69,897 Non - Operating Income: Interest income 6,274 410 Net income 94,191 70,307 Retained earnings, Beginning 80,557 10,250 Retained earnings, Ending $174,748 $80,557 -47- MIAMI SHORES VILLAGE, FLORIDA INTERNAL SERVICE FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 1995 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1994) ASSETS 1995 1994 Cash and cash equivalents $802,675 $699,168 Accounts receivable 1,109 Total assets $802,675 $700,277 LIABILITIES AND FUND EQUITY Liabilities: Accounts payable $ 10,862 $ 3,427 Estimated insurance claims 654,492 422,448 Total liabilities 665,354 425,875 Fund Equity: Retained earnings 137,321 274,402 Total liabilities and fund equity $8022675 $700,277 -48- WUM SHORES VILLAGE, FLORIDA INTERNAL SERVICE FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS FISCAL YEAR ENDED SEPTEMBER 30, 1995 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1994) Charges for services IL Operating Expenses: Insurance premiums Clams Ad- t3inistrative Total operating expenses Operating loss Non - Operating Income: Interest income Net loss Retained earnings, Beginning Retained earnings, Ending -49- 1995 1994 $ 491,000 $491,000 230,751 228,015 399,561 275,267 43,545 46,115 673,857 549,397 (182,857) (58,397) 45,776 29,600 (137,081) (28,797) 274,402 303,199 $ 137,321 $274,402 TRUST AND AGENCY FUNDS These funds account for assets held by the Village in a trustee capacity or as an agent for employees, other governments and/or other funds. Expendable Trust Funds: General Trust Fund - To account for the use of specific designated resources. Police Insurance Trust - To accumulate resources on behalf of police personnel to partially cover retirement health insurance. Law Enforcement Training Trust Fund - To account for proceeds obtained through fines designated specifically for training law enforcement officers. Police Forfeiture Fund - To account for proceeds obtained through the sale of confiscated and unclaimed property turned over to the Village through court judgments. Proceeds are to be used solely for crime fighting_ purposes. Pension Trust Fund: Pension Trust Fund - To account for the fiscal activities of the Miami Shores Village Pension Board which accumulates assets and pays benefits to qualified retirees of Miami Shores Village. Agency Fund: l Deferred Compensation Fund - To account for receipts and disbursements of amounts withheld from wages of employees participating in a deferred compensation plan. I. 1. l E- w y U U � �• G N aCi � V I� M 1/7 w O a 01 00 y � O F o O l��O a0 W O\r O W M1 ^00 [�N z a g— O�eT�OeTIn D E a a zz o0 d Wa (L) a F xN ��O ApQq C7 �¢ O �00V10r O C Neen�%O� w •v w Q O E"1 U = N y y Q' O E y C O U c w a a r Ems., O� O_ 3 E- w y U U � �• G N aCi � V I� M 1/7 w O r 01 00 y v O� M O F M O l��O a0 O\r O M1 ^00 [�N aw 0000 g— O�eT�OeTIn D E U C C ON 00 (L) a F ��O W e y �00V10r O C Neen�%O� w E- w y U U � �• G N aCi � V I� M 1/7 w O r M I^ 00 MVi v O� M M M O l��O a0 O\r O M1 ^00 [�N r- 0000 g— O�eT�OeTIn all] ON 00 O ea ��O W e y �00V10r O C Neen�%O� �O •v w Q y y = N y y Q' O E y C c w a a r iii C C a O� O_ ON O_ 44 ih N? ifi N 00 M h� E- UU5AA0 ¢a � N O 00 l- V'1 r 1/'1 M l- O V'1 Y1 --t en en � N O � v1 O O O M v 61°1 69 r 69 n n n n n O O O O O M M _O 0�0� l�p� , VN1� 000 , , , , 00 N O 00 V1 V1 M .r N N OMO O000 0000 0000 0 0 0 0 0 Oq va o+ 00 , , , , if1 00 . i . 00 00 00 00 � � h � h A r MVi 69 M M r all] �N � ea A Y y ea W e y Q C � �, •v y � Q y y = N y y Q' O E y C c w a a r iii C C a r r..0 c E- UU5AA0 ¢a � = A MIAMI SHORES VILLAGE, FLORIDA EXPENDABLE TRUST FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FISCAL YEAR ENDED SEPTEMBER 30, 1995 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1994) Revenues: Fines and forfeitures Contributions Donations Interest Confiscated property Total revenues Expenditures: Current: Public safety Culture /recreation Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures wk- Fund balance, Beginning Fund balance, Ending Nse Law Police Enforcement Police Totals General Insurance Training Forfeitures Trust Trust Trust Fund 1995 1994 $ - $ - $2,910 $ - $ 2,910 $ 2,860 - 10,316 - - 10,316 21,066 12,686 - - - 12,686 16,672 - - - 19,008 19,008 12,209 256,162 256,162 76,489 12,686 10,316 2,910 275,170 301,082 129,296 - - 3,638 79,381 83,019 60,192 6,858 - - - 6,858 5,829 3,222 20,514 23,736 58,418 10,080 - 3,638 99,895 113,613 124,439 2,606 10,316 (728) 175,275 187,469 4,857 6,840 21,065 1,314 296,624 325,843 320,986 $91446 $31,381 $ 586 $471,899 $513,312 $325,843 Nse MIAMI SHORES VILLAGE, FLORIDA PENSION TRUST FUNDS COMBINING BALANCE SHEETS SEPTEMBER 30, 1995 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1994) LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 10,296 $ 13,071 $ 23,367 $ 18,234 Total liabilities 10,296 13,071 23,367 18,234 Fund Balance: Reserved for pensions 4,790,579 6,081,264 10,871,843 Total liabilities and fund balance $4,800,875 $6,094,335 $10,895,210 -52- 9,155,034 $9,173,268 Totals General Police 1995 1994 ASSETS Cash with pension trustee $ 18,000 $ 22,849 $ 40,849 $ 35,977 Investments, at market 4,775,951 6,062,696 10,838,647 9,117,663 Due from employees 6,842 8,686 15,528 19,518 Other assets 82 104 186 110 Total assets $4 80 $6,094,335 $10,895,210 $9,17 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 10,296 $ 13,071 $ 23,367 $ 18,234 Total liabilities 10,296 13,071 23,367 18,234 Fund Balance: Reserved for pensions 4,790,579 6,081,264 10,871,843 Total liabilities and fund balance $4,800,875 $6,094,335 $10,895,210 -52- 9,155,034 $9,173,268 MIAMI SHORES VILLAGE, FLORIDA PENSION TRUST FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE FISCAL YEAR ENDED SEPTEMBER 30, 1995 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1994) -53- Totals General Police 1995 1994 Operating Revenues: Contributions: Employer $ 9,636 $ 216,208 $ 225,844 $ 214,712 State - 22,271 22,271 22,157 Employees 85,987 116,642 202,629 213,668 Total contributions 95,623 355,121 450,744 450,537 Investments earnings (loss) 802,190 1,006,184 1,808,374 11( 3,099) Total operating revenues 897,813 1,361,305 2,259,118 337,438 Operating Expenses: Administrative and general 42,505 52,690 95,195 87,300 Benefits payments and refunds 243,608 203,506 447,114 419,749 Total operating expenses 286,113 256,196 542,309 507,049 Net income (loss) 611,700 1,105,109 1,716,809 (169,611) Fund balance, Beginning 4,178,879 4,976,155 9,155,034 9,324,645 Fund balance, Ending $4,790,579 $6,081,264 $10,871,843 $9,155,034 -53- MIAMI SHORES VILLAGE, FLORIDA DEFERRED COMPENSATION AGENCY FUND STATMENT OF CHANGES IN ASSETS AND LIABILITIES FISCAL YEAR ENDED SEPTEMBER 30, 1995 Balance September 30, Transfers/ 1994 Additions Deletions Balance September 30, 1995 Assets: Deferred compensation investments $761,915 $285954 $10670 $1,037,199 Liabilities: Deferred compensation payable $761,915 $285,954 $10.670 $1 03 -54- MIANH SHORES VILLAGE, FLORIDA SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCE SEPTEMBER 30, 1995 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1994) General Fixed Assets: Land Buildings Improvements other than buildings Equipment Total general fixed assets Investment in General Fixed Assets from: General fund Capital projects fund Gifts and donations Confiscated property Country Club Total investment in general fixed assets -55- 1995 1994 $ 718,531 $ 718,531 2,128,556 2,096,870 1,940,481 1,779,709 3,138,810 2,714,265 $7,92�6,378 $ 7630 $4,880,066 $ 4,858,281 1,427,878 856,396 43,437 40,215 241,814 221,300 1,333,183 1,333,183 $7,926,378 $ 7,309,375 MIANH SHORES VILLAGE, FLORIDA SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY SEPTEMBER 30, 1995 Function Land Buildings General government - finance and 1,471,974 3,066,037 administrative $ 1,500 $ 232,720 Public safety - police - 266,410 Public services - public works 71,264 246,434 Culture /recreation: $3,138,810 $7,926,378 Parks and recreation 62,350 723,932 Library 2,500 311,643 Country club 580,917 347,417 Total general fixed assets allocated to functions $718,531 $2 12 44- -56- Improvements Other than Buildings Equipment Total $ 94,777 $ 257,748 $ 586,745 34,274 792,924 1,093,608 1,276,365 1,471,974 3,066,037 272,967 282,326 1,341,575 335 190,752 505,230 261,763 143,086 1,333,183 $1,940,481 $3,138,810 $7,926,378 MIAMI SHORES VILLAGE, FLORIDA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY FISCAL YEAR ENDED SEPTEMBER 30, 1995 -57- Balance Balance September 30, September 30, 1994 Additions Deletions 1995 General Government: Finance and administrative $ 544,625 $ 42,319 $ 199 $ 586,745 Public safety - police 967,728 153,232 27,352 1,093,608 Public services - public works 2,760,686 455,758 150,407 3,066,037 Culture Recreation: Parks and recreation 1,221,545 137,422 17,392 1,341,575 Library 481,608 23,622 - 505,230 Country club 1,333,183 - 1,333,183 Total culture /recreation 3,036,336 161,044 17,392 3,179,988 Total general fixed assets allocated to functions $7 30 $812353 $195,350 $7,926,378 -57- MIAMI SHORES VILLAGE, FLORIDA General Governmental Expenditures by Function (1) Last Ten Fiscal Years Public Services Fiscal General Public Streets Culture/ Debt Year Government Safety & Admin. Sanitation Recreation Service Total 1986 $529,970 $1,657,942 $598,507 $796,787 $1,116,003 $4,806 $4,704,015 1987 579,320 2,156,247 767,617 999,907 1,151,157 3,374 5,657,622 1988 662,200 2,050,383 564,012 1,153,518 1,273,411 190,108 5,893,632 1989 771,309 2,429,889 645,513 938,330 1,270,930 238,899 6,194,870 1990 724,504 2,487,160 849,493 973,996 1,147,600 308,484 6,491,237 1991 1,079,128 2,658,769 839,476 1,026,076 1,236,613 348,289 7,188,351 1992 766,732 2,802,608 1,060,660 1,259,103 1,259,271 329,034 7,477,408 1993 829,537 2,931,768 860,157 1,213,188 1,305,045 274,308 7,414,003 1994 882,339 2,858,883 984,164 1,195,945 1,517,445 475,103 7,913,879 1995 905,890 3,177,645 1,008,616 1,400,209 1,470,847 77,744 8,040,951 (1) General government expenditures include all Governmental Fund Types, Expendable Trust Funds and capital outlay. Source: Miami Shores Village Finance Department. -58- TABLE I TABLE II MIAMI SHORES VILLAGE, FLORIDA General Revenues by Source (1) Last Ten Fiscal Years (1) General revenues include all Governmental Fund Types and Expendable Trust Funds of the Village. Source: Miami Shores Village Finance Department. -59- Licenses Charges Fines Fiscal and Inter- for and Year Taxes Permits Governmental Services Forfeitures Misc. Totals 1986 $3,102,089 $80,660 $784,705 $1,069,626 $51,960 $252,031 $5,341,071 1987 3,059,448 95,324 757,487 1,150,649 70,843 227,888 5,361,639 1988 3,043,277 93,102 886,953 1,140,455 61,395 348,215 5,573,397 1989 3,270,710 106,214 868,871 1,332,099 122,483 343,510 6,043,887 1990 3,576,577 114,326 897,078 1,438,148 138,753 273,567 6,449,449 1991 3,605,607 116,836 885,653 1,553,224 96,444 760,582 7,018,346 1992 3,737,604 133,284 883,719 1,826,078 83,401 1,069,366 7,733,452 1993 4,034,053 161,227 968,227 1,804,167 116,021 988,830 8,072,525 1994 4,044,767 182,425 1,026,376 1,790,393 158,786 786,451 7,989,198 1995 4,151,583 175,278 1,097,505 1,902,751 207,611 772,887 8,307,615 (1) General revenues include all Governmental Fund Types and Expendable Trust Funds of the Village. Source: Miami Shores Village Finance Department. -59- TABLE III MIAMI SHORES VILLAGE, FLORIDA Property Tax Levies and Collections Last Ten Fiscal Years A- Source: Miami Shores Village Finance Department and Dade County Property Appraiser. -60- Percent of Percent Delinquent Total Total Tax Fiscal Total Current Tax of Levy Tax Tax Collection Year Tax Levy Collections Collected Collections Collections to Tax Levy 1986 $2,001,818 $1,897,495 95% $45,810 $1,943,305 97% 1987 1,951,427 1,901,359 97 2,652 1,904,011 98 1988 1,983,165 1,863,594 94 51,899 1,915,493 97 1989 2,097,457 1,969,373 94 50,157 2,019,530 96 1990 2,439,756 2,317,768 95 48,023 2,365,791 97 1991 2,478,450 2,336,552 94 15,443 2,336,552 95 1992 2,556,303 2,430,777 95 33,819 2,464,596 96 1993 2,835,734 2,687,841 95 30,991 2,718,832 96 1994 2,766,898 2,653,211 96 19,871 2,673,082 97 1995 2,936,163 2,766,533 94 22,689 2,789,222 95 A- Source: Miami Shores Village Finance Department and Dade County Property Appraiser. -60- TABLE IV MIAMI SHORES VILLAGE, FLORIDA Assessed Value of Taxable Property (1) Last Ten Fiscal Years Fiscal Real Property Personal Property Year Assessed Value Assessed Value Centrally Assessed Property Total Assessed Value 1986 $265,321,732 $15,288,618 $439,652 $281,050,002 1987 266,968,806 14,261,806 407,057 281,637,669 1988 268,844,024 15,295,871 345,907 284,485,802 1989 269,114,947 15,284,559 576,031 284,975,537 1990 274,396,671 14,286,897 576,031 289,259,599 1991 304,247,415 13,205,137 705,348 318,157,900 1992 303,333,325 15,899,139 705,348 319,937,812 1993 296,784,956 17,956,913 705,348 315,447,217 1994 304,864,072 14,150,253 489,901 319,503,326 1995 324,627,082 13,757,768 664,077 339,048,927 (1) The basis of assessed value is approximately one hundred percent (100 %) of actual value. For each fiscal year ending September 30, property is valued as of January 1 st of the preceding calendar year. Source: Dade County Property Appraiser. -61- MIAM SHORES VILLAGE, FLORIDA Property Tax Rates - Direct and Overlapping Governments Last Ten Fiscal Years (Per $1,000 of Assessed Valuation) Fiscal General Year Fund South Florida Water Management District 1986 7.170 .439 1987 7.170 .513 1988 6.995 .564 1989 7.380 .587 1990 8.380 .547 1991 7.790 .547 1992 7.990 .547 1993 9.120 .547 1994 8.660 .597 1995 8.660 .597 Source: Dade County Property Appraiser. TABLE V Dade County School Dade District County Total 7.316 10.740 25.670 7.558 10.810 26.050 7.551 10.892 26.020 7.693 10.894 26.550 8.190 11.230 28.350 8.666 12.000 29.000 8.683 12.020 29.240 9.528 11.590 30.785 9.923 11.280 30.460 10.345 10.532 30.134 -62- MIAMI SHORES VILLAGE, FLORIDA Computation of Overlapping Debt Service (1) September 30, 1995 Name of Governmental Unit Net Debt Outstanding Percent Applicable to Miami Shores Village* Miami Shores Village Share of Debt (1) Source: Dade County September 30, 1994 financial statement. September 30, 1995 financial statement unavailable. * General obligation -63- TABLE VI Metropolitan Dade County $1,035,937,000 .469% $ 2,015,000 TABLE VII MIAMI SHORES VILLAGE, FLORIDA Demographic Statistics - Last Ten Fiscal Years September 30, 1995 Source:µ;- (1) Bureau of Economic Analysis * (Figures in 1988 and 1989 not available). (2) Dade County Planning Department. (3) Bureau of Economic and Business Research. (4) State of Florida Department of Labor and Employment. (All figures, except population, are Dade County figures; Village figures were not available.) ** Data not available -64- (1) (2) (3) (4) Fiscal Per Capita Median Unemployment Year Income Age Population Rate 1986 $15,366 39 9,050 6.5% 1987 15,689 39 9,130 5.6% 1988 15,689* 39 8,925 5.3% 1989 15,689* 39 9,061 6.4% 1990 15,892 39 10,006 6.9% 1991 17,963 35 10,084 9.3% 1992 21,428 36 10,097 11.8% 1993 18,252 36 10,125 7.1% 1994 21,452 36 10,125 4.8% 1995 ** ** 10,125 8.3% Source:µ;- (1) Bureau of Economic Analysis * (Figures in 1988 and 1989 not available). (2) Dade County Planning Department. (3) Bureau of Economic and Business Research. (4) State of Florida Department of Labor and Employment. (All figures, except population, are Dade County figures; Village figures were not available.) ** Data not available -64- MLAMI SHORES VILLAGE, FLORIDA Property Value, Construction and Bank Deposits September 30, 1995 Construction Value TABLE VIII Property Value (2) Fiscal Bank Year Commercial Residential Deposits (1) Commercial Residential 1986 $2,548,295 $1,127,495 $10,092,538 $28,667,100 $252,382,902 1987 2,285,076 4,465,914 14,659,605 28,724,225 252,913,444 1988 4,404,642 2,049,631 12,897,683 29,014;707 255,471,095 1989 1,496,734 2,194,491 12,258,045 29,067,505 255,908,032 1990 6,142,111 2,627,706 11,387,817 32,869,891 256,389,708 1991 1,395,011 3,027,508 11,877,335 36,142,737 282,015,163 1992 1,303,199 3,116,805 11,020,361 32,953,954 286,984,218 1993 1,439,194 6,317,638 10,425,099 31,544,721 283,902,496 1994 '7,682,079 4,697,261 12,337,712 30,576,468 288,926,858 1995 1,881,706 5,152,751 10,876,146 33,902,278 290,274,804 (1) Municipal Bank Deposit Records (2) Estimated Actual Value Source: Miami Shores Village and Barnett Bank -65- MIAMI SHORES VILLAGE, FLORIDA Principal Taxpayers September 30, 1995 Taxpayer Biscayne Kennel Club Northern Trust Bank of Florida Boris Moroz and Phil Glassman Tropical Chevrolet, Inc. George Bennett/Bennett Electric Henry Everett Sheila McDonald NCNB National Bank Thomas T. Lin/Lihsuen Lin Konover Properties, Inc. Property Owned Shores Center 9325 Block of Park Dr. Shores Point Burger King, Eckerds Drugs Tropical Chevrolet 9500 Block of NE 2nd Avenue (and private residence) 9600 Block of NE 2nd Avenue (and private residence) 11 Residential Property in Miami Shores NCNB Hacienda Motel 9101 Biscayne Blvd Shores Cinema 9800 Block of NE 2nd Avenue (and private residence) Source: Miami Shores Village Finance Department -66- TABLE Ix 1,741,630 .54 1,240,797 .38 965,876 .30 919,210 .28 938,465 .28 $22,310,485 6.86% Percentage 1995 of Total Assessed Assessed Valuation Valuation $7,210,383 2.22% 2,900,000 .89 2,299,435 .71 2,303,801 .71 1,790,888 .55 1,741,630 .54 1,240,797 .38 965,876 .30 919,210 .28 938,465 .28 $22,310,485 6.86% MIAMI SHORES VILLAGE, FLORIDA Miscellaneous Statistics September 30, 1995 TABLE X Date of Incorporation 1932 Form of Government Council/Manager Population 10,125 Area 2%z square miles Miles of Streets 40 Number of Street Lights 1,038 Fire Protection: Number of Stations I Number of Firemen and Officers (operated by Dade County) 7 Police Protection: Number of Stations I Number of Policemen and Officers 34 Education: 1. University: Number of Classrooms 102 Number of Teachers 400 Number of Students 7,048 2. Elementary School: Number of Classrooms 75 Number of Teachers 101 Mumber of Students 1,838 3. Preschool and Centers: Number of Classrooms 18 Number of Teachers 43 Number of Students 281 Recreation/Culture Number of Parks 5 Number of Libraries I Number of Volumes 58,858 Other: Number of New Building/House Construction 2 -67- RACHLIN COHEN & HOLTZ CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS A PARTNERSHIP INCLUDING PROFESSIONAL ASSOCIATIONS Report of Independent Certified Public Accountants on Internal Control Structure in Accordance with Government Auditing Standards Honorable Mayor and Village Council Miami Shores Village We have audited the general purpose financial statements of Miami Shores Village (the "Village ") as of and for the year ended September 30, 1995, and have issued our report thereon dated November 17, 1995. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. The management of the Village is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitati9ps in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. In planning and performing our audit of the general purpose financial statements of the Village for the year ended September 30, 1995, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. 1320 South Dixie Hwy. Penthouse Coral Gables, Florida 33146 Dade (305) 667 -0412 Fax (305) 665 -7456 100 South Biscayne Blvd Suite 1201 Miami, Florida 33131 Dade (305) 377 -4228 Fax (305) 377 -8331 700 Southeast Third Ave. Third Floor Ft. Lauderdale, Florida 33316 Broward (305) 525 -1040 Fax (305) 525 -2004 1900 Corporate Blvd. Suite 305 West Boca Raton, Florida 33431 Phone (407) 989 -8788 -68- Member of Summit International Associates, Inc. with offices in principal cities throughout the world. Member of the American Institute of Certified Public Accountants Division for SEC Practice Section and the Private Companies Practice Section Member of the Florida Institute of Certified Public Accountants To the Honorable Mayor and Village Council Miami Shores Village Page Two Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors and irregularities in amounts that would be material in relation to the general purpose 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. We noted no matters involving the internal control structure and its operations that we consider to be material weaknesses as defined above. However, we noted one matter involving the internal control structure that were reported to management in a separate letter accompanying this report. (Page 73) This report is intended for the information of the Mayor, Village Council, Village Management and the Auditor General of the State of Florida. However, this report is a matter of public record and its distribution is not limited. Coral Gables, Florida November 17, 1995 " Pr know , orm, 9111 -69- RACHLIN COHEN & HOLTZ CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS A PARTNERSHIP INCLUDING PROFESSIONAL ASSOCIATIONS Report of Independent Certified Public Accountants on Compliance with Laws and Regulations in Accordance with Government Auditing Standards Honorable Mayor and Village Council Miami Shores Village We have audited the general purpose financial statements of Miami Shores Village (the "Village ") as of and for the year ended September 30, 1995, and have issued our report thereon dated November 17, 1995. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Compliance with laws, regulations, contracts and grants applicable to the Village is the responsibility of the Village's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Village's compliance with certain provisions of laws, regulations, contracts and grants. However, the objective of our audit of the general purpose financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards. This report is intended for the information of the Mayor, Village Council, Village Management and the Auditor General of the State of Florida. However, this report is a matter of public record and its distribution is not limited. Coral Gables, Florida November 17, 1995 1320 South Dixie Hwy. Penthouse Coral Gables, Florida 33146 Dade (305) 667 -0412 Fax (305) 665 -7456 100 South Biscayne Blvd. Suite 1201 Miami, Florida 33131 Dade (305) 377 -4228 Fax (305) 377 -8331 700 Southeast Third Ave. Third Floor Ft. Lauderdale, Florida 33316 Broward (305) 525 -1040 Fax (305) 525 -2004 -70- 1900 Corporate Blvd. Suite 305 West Boca Raton, Florida 33431 Phone (407) 989 -8788 Member of Summit International Associates, Inc. with offices in principal cities throughout the world. Member of the American Institute of Certified Public Accountants Division for SEC Practice Section and the Private Companies Practice Section Member of the Florida Institute of Certified Public Accountants RACHLIN COHEN & HOLTZ CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS A PARTNERSHIP INCLUDING PROFESSIONAL ASSOCIATIONS Management Letter Honorable Mayor and Village Council Miami Shores Village We have audited the general purpose financial statements of Miami Shores Village (the "Village ") as of and for the year ended September 30, 1995, and have issued a report thereon dated November 17, 1995. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards required that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. In connection with our audit of the general purpose financial statements of the Village for the year ended September 30, 1995, we report the following in accordance with Chapter 10.550 Rules of the Auditor General Local Governmental Entity Audits which requires that this report specifically address but not be limited to the matters outlined in Rule 10.554(lxf): 1. No irregularities were reported in the preceding annual financial audit. 2. The Village, during fiscal year 1995, was not in a state of financial emergency as defined by Florida Statute, Section 218.503 (1). Recommendations to improve the Village's present financial management and accounting procedures are accompanying this report (Page 73). 4. During the course of our audit, nothing came to our attention that caused us to believe that the Village: a. Was in violation of any laws, rules or regulations. b. Made any illegal or improper expenditures. C. Had improper or inadequate accounting procedures, other than those noted in our report of recommendations to improve the Village's administrative and accounting controls. d. Failed to record financial transactions which could have a material effect on the Village's general purpose financial statements. Had other inaccuracies, irregularities, shortages and defalcations. 1320 South Dixie Hwy. Penthouse Coral Gables, Florida 33146 Dade (305) 667 -0412 Fax (305) 665 -7456 100 South Biscayne Blvd Suite 1201 Miami, Florida 33131 Dade (305) 377 -4228 Fax (305) 377 -8331 700 Southeast Third Ave. Third Floor Ft. Lauderdale, Florida 33316 Broward (305) 525 -1040 Fax (305) 525 -2004 -71- 1900 Corporate Blvd. Suite 305 West Boca Raton, Florida 33431 Phone (407) 989 -8788 Member of Summit International Associates, Inc. with offices in principal cities throughout the world. Member of the American Institute of Certified Public Accountants Division for SEC Practice Section and the Private Companies Practice Section Member of the Florida Institute of Certified Public Acemiuranre To the Honorable Mayor and Village Council Miami Shores Village Page Two 6. The financial report for the year ended September 30, 1995 has been filed with the Department of Banking and Finance pursuant to Section 218.32 Florida Statutes and is in agreement with the audited financial statements of the same period. 7. The Village was incorporated by Laws of Florida 15690. This report is intended for the information of the Mayor, Village Council, Village Management, and the Auditor General of the State of Florida. However, this report is a matter of public record and its distribution is not limited. Coral Gables, Florida November 17, 1995 -72- MIAMI SHORES VILLAGE, FLORIDA RECOMMENDATIONS TO IMPROVE THE VILLAGE'S ADMINISTRATIVE AND ACCOUNTING CONTROLS FISCAL YEAR ENDED SEPTEMBER 30, 1995 CONDITION We noted that certain public works department employees' annual time sheets, which are generated from weekly payroll worksheets submitted to the finance department by the department head, did not agree to the amounts on their annual attendance cards. The annual attendance card, signed by both the employee and department head, is considered a more accurate record. The finance department made year end adjustments to properly reflect the time reported on the attendance card and, as such, no auditor adjustments were required. RECOMMENDATION We recommend that the Village perform a mid -year audit of the public works department timesheets during fiscal year 1996. If problems discussed above still persist, the Village should consider purchasing an automated time recording system. RESPONSE TO MANAGEMENT COMMENT Miami Shores management agrees with the auditor's recommendation. A mid -year audit will be performed by the Finance Department and a decision will then be made if an automated time recording system needs to be purchased. -73-