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1999Miami Shores Village, Florida GENERAL PURPOSE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30, 1999 Prepared by The Finance Department of Miami Shores Village, Florida MIAMI SHORES VILLAGE, FLORIDA TABLE OF CONTENTS INTRODUCTORY SECTION PAGE Letter of Transmittal i Organizational Chart vii Village Officials viii FINANCIAL SECTION REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS GENERAL PURPOSE FINANCIAL STATEMENTS (COMBINED STATEMENTS - OVERVIEW) Combined Balance Sheet - All Fund Types and Account Groups 3 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Funds 5 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Budgeted Governmental Fund Types 6 Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types 7 Combined Statement of Cash Flows - All Proprietary Fund Types 8 Combined Statement of Changes in Plan Net Assets - Pension Trust Fund 9 Notes to General Purpose Financial Statements 10 -27 Required Supplementary Information 28 COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES Governmental Fund Types General Fund: Comparative Balance Sheets 31 Comparative Statements of Revenues, Expenditures and Changes in Fund Balance 32 Schedule of Revenues and Expenditures - Budget and Actual 33 -36 Special Revenue Funds: Combining Balance Sheets 37 Combining Statements of Revenues, Expenditures and Changes in Fund Balance 38 Combining Statements of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual 39 Capital Projects: Combining Balance Sheets 40 Combining Statements of Revenues, Expenditures and Changes in Fund Balances 41 Combining Statements of Revenues, Expenditures and Changes in Fund Balances - Budget to Actual 42 MIAMI SHORES VILLAGE, FLORIDA TABLE OF CONTENTS (Continued) PA('-F. COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES, Continued Proprietary Fund Types Enterprise: Comparative Balance Sheets 43 Comparative Statements of Revenues, Expenses and Changes in Retained Earnings 44 Internal Service: Comparative Balance Sheets 45 Comparative Statements of Revenues, Expenses and Changes in Retained Earnings 46 Fiduciary Fund Types Trust and Agency Funds: Combining Balance Sheets - Trust and Agency Funds 47 Combining Statements of Revenues, Expenditures and Changes in Fund Balances - Expendable Trust Funds 48 Comparative Statements of Plan Net Assets 7 Pension Trust Fund 49 General Fixed Assets Account Group Schedules of General Fixed Assets - By Source 50 Schedule of General Fixed Assets - By Function and Activity 51 Schedule of Changes in General Fixed Assets - By Function and Activity 52 STATISTICAL SECTION General Governmental Expenditures by Function 53 General Governmental Revenues by Source 54 Property Tax Levies and Collections 55 Taxable Property Values 56 Property Tax Levies 57 Property Tax Rates — Direct and Overlapping Governments 58 Demographic Information and Statistics 59 Property Value, Construction and Bank Deposits 60 Miscellaneous Information 61 Principal Taxpayers 62 Ten Largest Public and Private Employers Located in Miami -Dade County, Florida 63 MIAMI SHORES VILLAGE, FLORIDA TABLE OF CONTENTS (Continued) PAGE SUPPLEMENTARY AUDITORS REPORTS SECTION Report of Independent Certified Public Accountants on Compliance and on Internal Control Over Financial Reporting Based on an Audit of General Purpose Financial Statements Performed in Accordance with Government Auditing Standards 64 Management Letter in Accordance with the Rules of the Auditor General of the State of Florida 66 Schedule of Findings 68 l l i INTRODUCTORY SECTION Thomas J. Benton Village Manager Mark A. Malatak, C.P.A. Chief Financial Officer Mayor Mark Ulmer and Members of the Village Council Miami Shores Village 10050 Northeast Second Avenue Miami Shores, Florida 33138 -2325 Dear Mayor Ulmer and Council members: 1l tu,u =jwu.7 10050 N.E. SECOND AVENUE MIAMI SHORES, FLORIDA 33138-2382 November 24, 1999 FINANCE DEPARTMENT TELEPHONE (305) 795 -2209 FAX (305) 756-8972 It is with great pleasure that I present to you the Comprehensive Annual Financial Report for the Village of Miami Shores, for the fiscal year ended September 30, 1999. This report, required by Florida State Statute Section 11.45 and Chapter 10.550 of the Rules of the Auditor General, contains audited financial statements, reported in a manner designed to present fairly the financial position and results from operations of the various funds and account groups of the Village of Miami Shores. All disclosures necessary to enable the readers to gain an understanding of the Village's financial activities have been included. The Village's management is responsible, in all material respects, for both the accuracy of the data and the completeness of the presentation; including all disclosures. The report has been prepared in conformity with Generalli, Accepted Accounting Principles (GAAP) and standards delineated by the Government Accounting Standards Board (GASB). The Comprehensive Annual Financial Report is presented in four sections: (1) Introductory; (2) Financial; (3) Statistical; and, (4) Supplementary Auditor's report. The Introduction section includes this transmittal letter, the organizational chart of the Village, and a list of key officials who were employed by the Village during the period in which the information is reported. The Financial section of the document includes the report of the independent certified public accountants, the combined general purpose financial statements, notes to the general purpose financial statements which highlight the key factors of the recorded transaction, and more detailed combining and individual fund and account groups financial statements and schedules. The Statistical section of the report includes selected financial and general information presented in a multi -year format for comparative or trend purposes. The Supplementary Auditor's Report section of the report provides the regulatory or mandatory compliance prepared by the independent auditors including audit compliance, management letter and current or past year's comments and recommendations. The Village provides a diversified range of services. Included in the Village's services are police protection; sanitation and recycling services; a full- service recreational program for residents; storm water drainage services; along with the construction and maintenance of all Village -owned streets, sidewalks, right -of -ways, parks, along with general governmental activities or functions. FINANCIAL INFORMATION The Village administration is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the government are protected from loss, theft or misuse; ensuring that adequate controls exist to protect the fiscal integrity of the organization. The internal control structure is designed to provide reasonablely, but not absolute assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits which are likely to be derived; and, (2) the valuation of costs and benefits requires the estimates and adjustments by Letter to Mavor Ulmer and Village Council November 24, 1999 management. As part of the FY 1999 fiscal audit, the Village's independent certified public accountants, Rachlin Cohen & Holtz, LLP, prepared a report which addresses a series of internal control issues. Findings identified by the auditors are provided to management as a means to improve operations and controls; accordingly, the administration has already implemented or is in the process of implementing their findings to ensure that the proper accountability of all Village funds is secured. Budgetaiv Controls. The Village maintained budgetary controls at a line -item level, ensuring compliance with legal provisions ` embodied in the annual appropriated budget approved and amended by the Village Council. These procedures are required by Section 200.065, Florida State Statutes, and establish procedures related to the preparation, adoption, implementation and amendments of the various operating budgets of the Village. The level of control at which expenditures cannot legally exceed the appropriated amounts is established at the departmental / divisional level. The Village maintains budgetary controls through an encumbrance - accounting system which compares requested goods and services to unencumbered funds prior to the release of purchase orders and disbursement of funds. Encumbrances at year end are reported as reservations of fund equity. The Village Manager is authorized to transfer budgeted amounts within departments of any fund; however, budget revisions that modify or adjust the total expenditure of any given department requires Village Council authorization through resolution. To ensure budgetary compliance, monthly comparative reports are prepared and reviewed by management. These reports are prepared for management to: (1) ensure budgetary compliance of revenues, expenditures and encumbrances; and, (2) confirm that disbursements are accurately recorded in the correct division and line item. GENERAL GOVERNMENT FUNCTIONS Revenues: General fund revenues and other operating sources, including operating transfers -in totaled $ 8,427,006 for the fiscal year ended September 30, 1999. This is a 4.9% decrease from the total revenues received in FY 1998. In reviewing the following Revenue Source chart, please note that a majority of the reported losses result from the creation of new special revenue and enterprise funds for Local Option Gas Tax Proceeds, Public Service Taxes and Franchise Fees, along with the creation of a Grant and Hurricane Fund and Sanitation Enterprise Fund. The following chart graphically presents a categorical summary of general fund revenues and other financing sources for the fiscal year, their related percent and the amount and percentage of increases or decreases in relationship to the prior year's proceeds. Total General Fund Revenue Sources Source Amount Percent of Total Increase/ (Decrease) from 1998 Percent of Increase/ (Decrease) Ad Valorem Revenues $ 3,072,144 36.5% $ <1,453,162> -47.3% Licenses & Permits 231,674 2.7% 20,215 8.7% Intergovernmental Revenues 942,571 11.2% <260,506> -27.6% Charges for Services 2,145,903 25.5 % <158,356> -7.4% Fines & Forfeitures 111,930 1.3 % <93,307> -83.4% Interest Income 150,028 1.8 % 4,958 3.3% Other Revenues 260,978 3.1 % 35,402 13.6% Operating Transfers -in 1,511,778 17.9% 1,491,778 98.7% TOTAL REVENUES -> $ 8,427,006 100.0% $ <412,980> -4.9% Letter to Mavor Ulmer and Village Council November 24, 1999 The most significant sources of general fund revenues were ad valorem taxes, representing 36.5% of the total general fund proceeds for the Village. Note that the material negative variance results from the reclassification of Public Service Taxes and Franchise Fees collected from utility providers into a new Special Revenue Fund. This accounting adjustment was necessitated by the Bond Covenants from the 1999 General Obligation Bonds, pledging these funds as a subordinate revenue stream to meet annual debt service obligations. Property taxes are based upon assessed value of real and personal properties as prepared by the Miami -Dade County Property Appraisers' Office and applied to the millage rate established and adopted by the Village Council. The final assessed value for the tax year 1998 fur, real and personal properly was $ 367,730,418 compared to $352,830,811 in 1997. This represents a $13,536,404 (or 3.68 %) increase between the two reporting years. Along with ad valorem revenues, the General Fund operates with proceeds generated from licenses and permit fees, shared revenue from state and county agencies (intergovernmental) including the 1/2-cent sales tax, 2/3 -cent cigarette tax and the 8 -cent motor fuel tax. Inter -fund transfers -in represents the collection of the franchise fees and public service taxes collected from utilities including telecommunications, electricity, cable television, gas, fuels and oils sold in Miami Shores. Receipts are initially deposited to a separate special revenue fund, then transferred for use into the general fund. Fines and forfeitures represent traffic violations and penalties applied to sanitation accounts. Expenditures: General fund operating expenditures totaled to $ 8,171,651 for the fiscal year ended September 30, 1999. This generated a general fund operating surplus of $ 255,355 from revenues in excess of expenditures, which was reflected as an increase to the unreserved / Undesignated general fund balance. This account is held for special projects, working capital and emergency purposes. The total expenditures for the year reflected a 3.4% decrease from the total adjusted FY 1998 operating expenditures. The following schedule presents a summary of expenditures including open encumbrances or obligations at year- end, along with other financing uses for the year, the related percentages of the total and the amount and percentage of increase or decrease over the prior fiscal year's expenditure. Total General Fund Expenditures Source Amount Percent of Total Increase/ (Decrease) from 1998 Percent of Increase/ (Decrease) General Government $ 894,358 10.9% $< 96,969> -10.8% Public Safety 3,026,323 37.0% 16,629 0.5% Public Works 2,143,106 26.2% < 26,570> -1.2% Recreation & Culture 1,539,543 18.8 % 23,001 1.5% Other Services 182,839 2.2% <205,416> -112.3% Operating Transfers -out 385,482 4.7% 10,826 2.8% Total Expenditures -> $ 8,171,651 100.0% $ <278,499> 3.4% General Government comprises the following administrative departments: Mayor and Village Council, Office of the Village Manager, Office of the Village Clerk, Office of the Village Attorney, Community Development, and Finance. Public Safety includes the Police Department, Building and Zoning Department, and Code Enforcement Division. Public Works includes, an administrative Division, Waste Division (to be renamed "Sanitation" in FY 2000, and reclassified into a new enterprise fund), Parks Maintenance Division, Streets Division, Recreation Maintenance, and the Motor Pool Divisions (to be renamed "Fleet Maintenance" in FY 2000). Recreation and Culture includes the Recreation Administrative Division, Community Center Division, Athletics Division, Aquatic Division, the Tennis Center, and the Library Operations. Other Services reports those activities recorded in the "Unclassified" or Non - departmental division reporting activities on a village -wide or general purpose. M Letter to Mavor Ulmer and Village Council November 24, 1999 Special Revenue Funds. Special revenue funds record proceeds from specific revenue sources which are legally restricted for designated expenditures or purposes. Included in these funds are proceeds from excise tax dollars (the public service and utility taxes), local option gas tax proceeds and all grant awards not specifically recorded in any other operating fund. Excise Tax Fund (120) represents the group of accounts related to the receipt of public service taxes (PST) and franchise fees. These receipts are paid by utility providers operating in Miami Shores including telecommunication services, electrical services, cable televisions / broadband services, gas, fuel and oil products and services. These revenues are a secondary pledge to the General Obligation Bonds sold in 1999 and reflect $ 916,214 and $ 5,544,564 for public service taxes and franchise fees respectively. Local Option Gas Tax Fund (130) represents the two components of sales tax dollars received for all gasoline, petroleum or petroleum- related products sold and allocated to Miami Shores. The tax is distributed by the State of Florida in two sections on a monthly basis. The proceeds of these dollars are restricted in use to streets, streetlights, sidewalks, right -of -ways, and easements projects. Funds not used - during anyone fiscal year are held as unreserved fund balance and may be used in subsequent years for the aforementioned projects. The General Fixed Asset Account Group represents the general fixed or capital assets of the Village which are not acquired using designated or capital funds. These assets are wholly -owned by Village and capitalized at the end of each fiscal year to be incorporated into this fund for reporting purposes. (Note: during the next five fiscal vears, the Village will be implementing the regulations specified by GASB 34 which requires full reporting and depreciation expenses; however, under this ruling, the Village has five veins to develop guidelines to implement the policy.) Assets specifically purchased with law enforcement, enterprise fund operations or other specially - designated funds are excluded from this reporting group. In accordance with generally accepted accounting principles for local governments, fixed assets nor infrastructure assets such as roads, bridges, curbs and gutters, streets and sidewalks, or similar assets which are immovable and of value only to the Village. Assets are recorded at cost except for those donated items which are recorded at fair market value at the time of contribution. As of September 30, 1999, the general fixed assets recorded in the account group is $ 12,328,009. General Long -term DebtAccount Group is used as a self - balancing group of accounts designed to account for liabilities arising from accumulated unpaid vacation and sick leave. The general long -term debt as of September 30, 1999 for accrued benefits is $ 4,518,425. Additionally, the debt obligation for the Village's General Obligation Bond - Series 1999 is also included in this group and had an outstanding balance of $ 3,200,000 at the end of the fiscal year. FIDUCIARY OPERATIONS Pension Trust Fund. The Village administers the Miami Shores Village General Employees Pension System. The financial operations of this fund are incorporated into this report. As a subsequent period note, the applicable Florida State Statute delineating the rules and regulations for public pension systems has changed following the enactment of Florida Public Law Chapter 99 -1. For reporting purposes, the Village will sponsor two (2) independently operated pension systems, each with their own board of trustees: the first for general employees and the second providing benefits to police officers. With the FY 2000 report, the results from operations of both funds will be separately reported, including all contributions, benefits, and investment results. Independent actuarial calculations will be performed and the activities of each fund will be unique. RISK MANAGEMENT - LIABILITY MANAGEMENT The Village uses a modified self - insurance method for risk management purposes. Under the description of risk management, the Village is protected using accumulated funds which have been actuarially calculated along with separate insurance policies for a wide array of coverage. A third parry administrator, manages the Village's liability claims including workers' compensation and property and casualty insurances. Funding for these costs, including the contribution to reserves and payment premium payments, are derived from internal transfers from other operating funds. The loss ratio for the Village has improved by 7.4% over last fiscal year and, along with expanded safety training, workers' compensation claims are anticipated to significantly reduce during FY 2000. -iv- Letter to Mavor Ulmer and Village Council November 24, 1999 CASH MANAGEMENT AND TREASURY The Finance Department is responsible for the security, and return maximization for all Village funds including reserves and working capital. Cash management or investment policies and strategies are incorporated into the Adopted FY 2000 Operating Budget and are fully integrated into the day -to -day operations of the Village. During the last quarter of FY 1999, the new management of the Finance Department negotiated changes with the Village's bankers which resulted in the release of more than $250,000 in cash for investment purposes. The negotiations included the elimination of bank fees, reduction of the minimum balance maintenance from $500,000 to $150,000, expanded investment purchases to included state - authorized commercial paper certificates of deposits and bankers' acceptances notes, repurchase and reverse repurchase agreements, along with governmental agency funds. No investment exceeding one year will be purchased and sufficient cash will be maintained in the operating accounts to ensure that all financial obligations (payroll, general accounts payable and debt service) are met. ECONOMIC CONDITION AND OUTLOOK Miami Shores Village is located in the northeastern portion of Miami -Dade County, a municipality in Southeast Florida. Located just north of the metropolitan City of Miami, Miami Shores is an affluent residential community comprising 2.3 square miles with a population of 10,162 full -time and season residents. The Village begins at Biscayne Bay, the easternmost portion of the Village and includes the area west to Northwest Second Avenue. The north and south borders of the Village are 115" Street and 91s` Street respectively. A small business district traverses the Northeast Second Avenue corridor and is currently under review for revitalization, expansion and development. During the last quarter of FY 1999 and continuing into the new fiscal year, the Village Council established the Miami Shores Design Charette. The purpose of this committee is to strategically review the fiscal implications of an expanded business district. The group has regularly met to discuss various opportunities presenting themselves to the Village and is expected to make formal recommendations to the Village Council during the second quarter of FY2000. The Village also owns the Miami Shores Golf and Country Club. Operated by PCM III under a 30 -year management agreement, the course has seen a considerable revitalization over the past several years. The resurgence of golf enthusiasm has brought the club to the forefront of municipal golf operations throughout the County. Several million dollars have been invested in the course's infrastructure and clubhouse. Under the terms of the modified agreement, PCM pays the Village a flat rental fee of $150,000 at the beginning of each fiscal year. For years in which total revenues exceed $1,875,000, the Village receives 8- percent of the surplus which is paid subsequently to the firm's fiscal year end. For FYI 999, the Club earned $2,001,306, resulting in a $10,105 bonus paid the Village in January 2000. This amount was not included in the attached report as the transaction occurred after all books were closed. Additionally, the Village sold a $3.2 million general obligation bonds in April 1999. Bond proceeds will be used to design, develop and construct the new Miami Shores Aquatic Facility which will be located immediately to the north of the Miami Shores Golf and Country Club. This state -of -the -art facility will incorporate new developments in the municipal aquatics business including technologically advanced maintenance equipment and a custom - designed tot -aqua lot. The new development will replace the existing pool which, upon completion of the new project, will be razed to make way for additional parking needs at the country club. The new pool is scheduled to open in Summer, 2000. OTHER INFORMATION Independent Audit. The State of Florida requires municipalities to prepare annual financial reports. These reports are prepared by an external auditor who reviews the Village's financial statements, accounts and associated records. The Village uses the services of the certified public accounting firm of Rachlin Cohen & Holtz, LLP. Rachlin Cohen & Holtz is recognized as one of the foremost accounting and auditing firms in the tri -county vicinity and RCH has considerable expertise in the area of small to mid -sized cities. Focusing their attention to the details of managing a government, the firm adheres to the strictest of accounting and professional standards. In addition to meeting the general guidelines, RCH prepares subordinated reports and technical comments to ensure the fiscal integrity of the Village and applies the Generally Accepted Accounting Principles and Generaly, Accepted Auditing Standards to their reviews. -v- Letter to Mavor Ulmer and Village Council November 24, 1999 Acknowledgments. The preparation of the Comprehensive Annual Financial Report (CAFR) demonstrates the professional commitment of the Chief Financial Officer and the staff members of the Finance Department to ensure that accurately and timely information is provided to the Village Council, Administration and other interested parties. We take a moment in closing to thank the auditing team from Rachlin Cohen & Holtz, LLP for the many hours of hard work and assistance which they provided the Village Administration during the preparation of this Annual Report. As a result of the Village's new management team, the new bond programs and renewed energies focusing on the redevelopment of the business district of the community, the annual report requires considerably more analysis, compilation and collation of data. Without the extensive help of the accounting staff and external audit professionals, the information disseminated in this report would lack credence and credibility. As we approach and pass the millennium milestone, the Administration eagerly accepts the new challenges facing each of us for FY 2000 and beyond. In the spirit of mutual cooperation, consensus building and enhanced lifestyle opportunities, we look forward to the future; bringing new technologies, revitalized spirits and improved quality of life for our residents, businesses and visitors throughout the Village. Finally, we want to especially thank Carolyn Modeste, Lisa Keeley, Clara Bender and Gloria Aldana of the Finance Department for the many, long hours dedicated to gathering the necessary supporting schedules used for this report. Additionally, we thank each of the Department Heads and their respective staff for cooperating with us during this transition year without whom we could not have completed this annual report. Respectfully submitted, MIAMI SHORES VILLL,AAGE THOMAS J. BENTON Chief Executive Officer Village Manager TJB:MAM: Attachments -vi- MARK A. MALATAK, C.P.A. Chief Financial Officer Finance Director MIAMI SHORES VILLAGE, FLORIDA VILLAGE CLERK BARBARA FUGAZZI EXECUTIVE ASST. TO VILLAGE MANAGER BARBARA FUGAZZI POLICE BUILDING MAYOR/COUNCIL ORGANIZATION CHART SEPTEMBER 30, 1999 MAYOR / COUNCIL MAYOR MARK S. ULMER VICE MAYOR ROBERT C. BLUM COUNCILWOMAN MARY ROSS AGOSTA COUNCILMAN WILLIAM A. DAVIS COUNCILMAN STEPHEN K. LOFFREDO VILLAGE MANAGER TOM BENTON PUBLIC I I RECREATION WORKS COMMUNITY DEVELOPMENT VILLAGE ATTORNEY RICHARD SARAFAN FINANCE AND ADMINISTRATION PLANNING & ZONING MIAMI SHORES VILLAGE, FLORIDA VILLAGE OFFICIALS SEPTEMBER 30, 1999 MAYOR Mark S. Ulmer VILLAGE COUNCIL Robert C. Blum - Vice Mayor Mary Ross Agosta William A. Davis Stephen K. Loffredo VILLAGE MANAGER Tom J. Benton MARK A. MALATAK, CPA Chief Financial Officer VILLAGE AUDITORS Rachlin Cohen & Holtz LLP Certified Public Accountants & Consultants -viii- Rachlin Cohen & Holtz LLP Certified Public Accountants & Consultants 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, 1999 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 the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit 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 Miami Shores Village, Florida as of September 30, 1999, 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 24, 1999 on our consideration of the Village's internal control over financial reporting and our tests of compliance with certain laws, regulations and contracts. 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 statements and schedules as listed in the table of contents and the required supplementary information on pages 29 and 30 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. -I- One Southeast Third Avenue, Tenth Floor, Miami, Florida 33131 • Tel 305- 377 -4228 • Fax 305 -377 -8331 Offices in: Miami a Ft. Lauderdale • Boca Raton * West Palm Beach • Stuart www.rchcpa.com Member of Summit International Associates, Inc. with offices in principal cities throughout the world Member of the American Institute of Certified Public Accountants and member of the Florida Institute of Certified Public Accountants Honorable Mayor, Village Council and Village Manager Miami Shores Village, Florida Page Two The year 2000 supplementary information on page 28 is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and do not express an opinion on it. In addition, we do not provide assurance that the Village is or will become year 2000 compliant, that the Village's year 2000 remediation efforts will be successful in whole or in part, or that parties with which the Village does business are or will become year 2000 compliant. The information shown in the statistical section listed in the table of contents has not been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, accordingly, we express no opinion thereon. Miami, Florida November 24, 1999 -2- i GENERAL PURPOSE FINANCIAL STATEMENTS (COMBINED STATEMENTS - OVERVIEW) N G O y c a� N w ro c w v O K O a v c 0 O c �D 00 O O G Q h %O h -It V. 00 M � i W u Q) 00� O^W�I 00 V1 t� N V' W) O M -- -- M 00 > y Y N r-:, O 00 .D O N M h C > Y p o � En r v c G; 0 c c 0 E c En b aci c d 1 C 69 r 3 3 E s o o v o 2 a 69 cv'a cno `� O C F- 0 cca w o O\ [� �O V O ON h V h M 5 .l c4 m M !� a .5 O LT- d vl N oo N O a\ V' cl M M N N O V N ro o0 y Oy N 00 O t� t- N O� If Oi l— 00 OO�VVI 00 M M M Vl M h N M It � 6A N N � N F 00 00 coq 0 rn ca _ 0 0 O K 00 N 00 N (�3 09 T y h 00 N M N ca U H 7 00 M N W) 00 rn 7 w i.. 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N v° O O O T O ,D m N ^ Cn vi r ^ N M 69 N U G U DO ;d C 0 O 0 U A O Cd o °' y c c v ❑ v a tR tl .v t0^tl O U G . •E G 7 ,G. ' o 0 v U u w a> 0.. . a0 o .� ai � .o .—_u L c .°wG bOE ` ' A v °y C.; . G2 4� 'O a0 i wG ' d .. G w .. yn0 >c ° v u v > U F G ° 0 O 0j 0 E L N 0. 7 o v ' g u q w � im v d q cd iv � d q wN im v aE d ' F n. 0 u E c o ua CL r- c y > ; .- t v U U ° w z u 0 u - y 0 3 ¢A W 0 0 ¢¢ u ACr 5 w MIAMI .SHORES VILLAGE, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 1999 ( WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1998) See notes to general purpose financial statements. -5- Govemmental Fiduciary Totals Fund Types Fund Types (Memorandum Only Special Capital Debt Expendable General Revenue Proiects Service Tmst 1999 im Revenues: Taxes and fees $ 3,072,144 $ 1,817,288 $ $ $ $ 4,889,432 $ 4,525,306 Licenses and permits 231,674 - 231,674 211,459 Intergovernmental revenues 942,571 6,901 3,265,000 4,214,472 1,203,077 Charges for services 2,145,903 - - 2,145,903 2,304,259 Fines and forfeitures 111,930 33,696 145,626 230,430 Contrihutions - 8,062 8,062 6,811 Miscellaneous revenue 260,978 - - 260,978 226,276 Interest 150,028 31,848 18,028 199,904 199,296 Confiscated property - - 205,676 205,676 262,676 Total revenues 6,915,228 1,824,189 3,296,848 265,462 12,301,727 9,169,590 Expenditures: Current: General government 894,358 46,377 - - 940,735 991,327 Public safety 3,026,323 - 30,025 153,770 3,210,118 3,024,268 Public services 2,143,106 661,305 - 2,804,411 2,304,188 Culture /recreation 1,539,543 - 7,887 1,547,430 1,604,055 Capital outlay 160,080 23,723 - - 183,803 353,381 Debt service: Principal 18,076 - 19,363 37,439 224,216 Interest 4,683 - 7,581 65,659 77,923 56,245 Total expenditures 7,786,169 70,100 718,274 65,659 161,657 8,801,859 8,557,680 Excess (deficiency) of revenues over expenditures (870,941) 1,754,089 2,578,574 (65,659) 103,805 3,499,868 611,910 Other financing sources (uses): Operating transfers in 1,511,778 - 133,260 1,645,038 394,656 Operating transfers out (133,260) 1,511,778 - 1,378,518 (394,656) Capital loan proceeds - 234,328 234,328 Total other financing sources (uses) 1,378,518 1,511,778 367,588 3,257,884 Excess (deficiency) of revenues over expenditures and other financing sources (uses) 507,577 3,265,867 2,946,162 (65,659) 103,805 6,757,752 611,910 Fund balances, beginning 2,313,590 - 686,208 411,382 3,41 1,180 2,799,270 Equity transfers in (out) (252,222) 102,222 - - (150,000) - Fund balances, ending $ 2,568,945 $ 3,368,089 $ 3,632,370 $ (65,659) $ 515,187 $ 10,018,932 $ 3,411,180 See notes to general purpose financial statements. -5- Q _G O a V Q a a W a O m t/] Q i5 .-1 Q f-' U ¢ Q z LT. O h-' z w w F- t- 4 w z O U Q � w a C, O a w w 'w > Q 3� w 0.l � 'a w .-1 Q eq O 'n 'n r O\ \.O V o N 00 N a) C O N O 'V [� [� 'V r- 00 c U oo M O O M .M-. 00 kn N \O Vl CO N o� O N ; M M r- 00 N M N et ^ 00 > W M M N N "O w k=. 69 u >1 ' 00 00 ' 'n 'n ' M ^ �}' t} ' O ' 00 00 N 4) N -al O 000 0�0 O M r +l vl N N M 'V �. y N M N O ' M G — N V' co M M N M O N 69 cd 69 O O ' ' ' O O O O ' ' ' Ln W) In M o 00 00 C O O Ln kn N N !i9 M M M M v 69 O 00 CKS > ^ 00 00 g m > 7— M N > w b _ 00 00 00 0O 0^O 00 00 G N r- 00 >> r N U W .� W) kn kn • ...+ G U 69 ..+ d 69 00 N O 00 N N 0o O ' ' O O Oj y N O p N N E O 00 0o p a7 co N N O O v U Cd n [� O, O 00 �O O\ r -n lO 't In N ON 00 O\ 00 G ONO v1 O r O\ 'fin Cad O O N OMO OHO D n N vl ti G [d i.. ~ M 'd' M v lO 01 7 00 OV ry M O\ h O 00 ^ G � 69 D 69 00 00 00 l� M 'V M 01 ' 00 v'1 O� O� O1 O N N O 00 O 'n 1� 00 � `p^O G yd h id V O 'n ' ro Oq •R I� M �Y ^- �O M V. -'t D\ 00 � M 00 1� N ¢ O N O� .-• N .--, .�. O� CN O � ^ O N 0000 ,^ ,M- M 69 f� O\ O 00 O V O O N CN 00 ,n 00 [� O� I� M O N O .--� 'n V O f— O Il- O ON 000 O 0�1 001 O 00 M1 N W M O� T _ O - o0 — 0 .--, (7N d' ,--. 00 00 (� O ry .�. 0r0 00 69 69 y C C N u1 a) O a) O vUi 7 C N v cl y U y G W U .0 OD vO � p U •C cd N .> y U ... .. O U 4. in y co 4., C a y = d G O Gt y N y p = En O is K u C u v y _ CO 7 0. U O >a 0 U CO a W X i d 0 0 0 x w MIAMI SHORES VILLAGE, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES FISCAL YEAR ENDED SEPTEMBER 30, 1999 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1998) Internal Totals Ent=rise Service jMemorandum Only) Self - Stormwater Insurance 1999 1998 Operating revenues: Charges for services $ 126,951 $ 477,982 $ 604,933 $ 573,843 Operating expenses: Insurance expenses - 514,568 514,568 499,145 Personnel expenses - - - 28,816 Administrative and general 36,464 - 36,464 20,921 Depreciation 7,683 - 7,683 - Total operating expenses 44,147 514,568 558,715 548,882 Operating income (loss) 82,804 (36,586) 46,218 24,961 Non - operating revenues: Interest income 5,603 36,586 42,189 48,486 Total non - operating revenues 5,603 36,586 42,189 48,486 Net income 88,407 - 88,407 73,447 Retained earnings, beginning 356,942 30,000 386,942 313,495 Equity transfer in 150,000 - 150,000 - Retained earnings, ending $ 595,349 $ 30,000 $ 625,349 $ 386,942 See notes to general purpose financial statements. -7- MIAMI SHORES VILLAGE, FLORIDA COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES FISCAL YEAR ENDED SEPTEMBER 30, 1999 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1998) Cash flows from operating activities: Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation Changes in operating assets and liabilities: (Increase) decrease in miscellaneous receivables Increase (decrease) in accounts payable and accrued liabilities Increase (decrease) in estimated insurance claims Increase in deferred revenue Net cash provided by operating activities Cash flows from non - capital financing activities: Equity transfer in Cash flows from capital and related financing activities: Capital improvements Cash flows from investing activities: Interest received Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning Cash and cash equivalents, ending Internal Totals EnteLprise Service (Memorandum Only) Self - Stormwater Insurance 1999$ $ 82,804 $ - $ 82,804 $ 24,961 7,683 - 7,683 (2,427) 5,942 3,515 (6,800) (21,789) 5,286 (16,503) 5,585 - 4,979 4,979 (14,669) - - - 52,955 66,271 16,207 82,478 62,032 150,000 - 150,000 - (307,322) 5,603 - 5,603 48,486 221,874 16,207 238,081 (196,804) 21,155 722,066 743,221 940,025 $ 243,029 $ 738,273 $ 981,302 $ 743,221 See notes to general purpose financial statements. -8- MIAMI SHORES VILLAGE, FLORIDA COMBINED STATEMENT OF CHANGES IN PLAN NET ASSETS PENSION TRUST FUND FISCAL YEAR ENDED SEPTEMBER 30, 1999 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1998) Additions Contributions: Employer State Employees Total contributions Investment income: Investment earnings Less investment expenses Net investment income Other income Total additions Deductions Benefit payments and refunds Administrative and general Total deductions Net increase Net assets held in trust for pension benefits: Beginning of year End of year See notes to general purpose financial statements. -9- 1999 1998 $ 190,036 $ 224,565 28,907 30,193 199,878 237,793 1,872,316 1,244,809 2,177,077 1,652,691 605,004 571,105 623,778 597,486 1,553,299 1,055,205 15,758,161 14,702,956 $ 17,311,460 $ 15,758,161 NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS MIAMI SHORES VILLAGE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS SEPTEMBER 30, 1999 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 Miami -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 Village and any organization for which the Village 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. The Village does not have any component units that meet the definition 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 (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). The accounts of the Village are organized and operated on the basis of funds, 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. An account group, on the other hand, is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources. 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 Village uses the following funds and account groups: 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. -10- MIAMI SHORES VILLAGE, F+ LORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 2. Basis of Presentation (Continued) Governmental Fund Types (Continued) The special revenue funds are used to account for the collection and disbursement of earmarked monies. The Village has four special revenue funds: Excise Tax Fund, Local Option Gas Tax Fund, Grant Fund and Hurricane Fund. The debt service fund accounts for the servicing of general long -term debt not being financed by proprietary funds. The capital projects funds are used to account for financial resources to be used for the acquisition of equipment and construction of capital facilities. The Village maintains two capital projects funds: Capital Improvement Fund and the 1999 G.O. Bond Fund. 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 Forfeiture Trust), and a Pension Trust 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 and other long -term obligations not accounted for in proprietary fund types. Accordingly, the Village maintains a general fixed assets account group and a general long -term debt account group. -11- MIAMI SHORES VILLAGE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 3. Measurement Focus Governmental Fund Types The general fund and capital projects funds 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 determination of net income is necessary for sound financial administration. 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 the proprietary fund types. 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 of the governmental fund types is accounted for in the general long -term debt account group. General fixed assets of the governmental fund types are accounted for in the general fixed assets account group. 4. Basis of Accounting The basis of accounting refers to the recognition of revenues and expenditures or expenses as reported in the accounts and 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, which is when they become both measurable and available as expendable financial resources. Measurable means that the amount of the transaction can be determined and 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. -12- MIAMI SHORES VILLAGE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 4. Basis of Accounting (Continued) 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 GASB pronouncements and 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 are accounted for on the modified accrual basis. 5. Deposits and Investments The Village maintains a pooled cash account for all funds except the pension trust fund. This enables the Village to invest large amounts of idle cash for short periods of time and to optimize earnings potential. Cash and cash equivalents represents the amount owned by each fund of the Village. Cash and investments held in the Village's pension trust fund are managed by trustees. Such amounts are reported separately on the Combined Balance Sheet - All Fund Types and Account Groups. 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. The investment in the Investment Pool (2A -7 Pool) is reported at its fair value of its position in the pool, which is the same as the value of the pool shares. The investments in the pension trust fund are reported at fair value. 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. Inventory, except for gasoline, is expensed when purchased (purchase method). Inventory for gasoline is expensed when used (consumption method). Inventories are recorded on the balance sheet with a related reservation of fund balance. 7. General 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. Certain public domain (infrastructure) general fixed assets, consisting of roads, curbs and gutters, and lighting systems are 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. Assets related to the golf and country club represent the contractually required capital investments made annually by the operator, PCM III. Depreciation is not required and has not been provided on general fixed assets. -13- MIAMI SHORES VILLAGE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 8. Proprietary Fund Fixed Assets Fixed assets are stated at cost or, if donated, at fair market value at the date of donation. Expenses, which materially extend the useful life of existing assets, are capitalized. The cost of property sold or retired, together with the related accumulated depreciation, is removed from the appropriate accounts and any resulting gain or loss is included in net income. Depreciation has been provided over the estimated useful lives of the related assets using the straight -line method. The estimated useful lives are as follows: Drainage improvements 9. Compensated Absences Estimated Useful Lives (Years) M Village employees are granted vacation and sick leave in varying amounts based on length of service and the department which the employee serves. 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 in the appropriate fund. The remaining accumulated vacation leave balance is accounted for in the general long -term debt account group. 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. 10. Long -Term Obligations The Village reports long -term debt of governmental funds at face value in the general long- term debt account group. Certain other governmental fund obligations not expected to be financed with current available financial resources are also reported in the general long -term debt account group. 11. Deferred Revenues Revenues collected in advance are deferred and recognized as income in the period earned. In the general fund, deferred revenues consist primarily of occupational licenses and refuse collection fees received in advance that have been budgeted to pay expenditures of the subsequent fiscal year. -14- MIAMI SHORES VILLAGE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 12. Encumbrances Encumbrances are recorded at the time a purchase order or other commitment is entered into. Encumbrances 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 of the current period. 13. Reserves and Designations Reservations of fund balance /retained earnings represent amounts that are not available for appropriation or are legally segregated for a specific future use. The description of each reserve indicates the purpose for which each was intended. Designations of fund balance indicate that a portion of fund balance 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. 14. Property Taxes Property taxes are assessed as of January 1 each year and are first billed (levied) the following November 1. Under Florida law, the assessment of all properties and the collection of all county, municipal, school board and special district property taxes are consolidated in the offices of the County Property Appraiser and County Tax Collector. The laws for the State regulating tax assessments are also designed to assure a consistent property valuation method statewide. State statutes permit municipalities to levy property taxes at a rate of up to 10 mills ($10 per $1,000 of assessed taxable valuation). The millage rate assessed by the Village for the year ended September 30, 1999 was 8.740. The Village Council prior to October 1 each year establishes the tax levy of the Village, and the County Property Appraiser incorporates the millage into the total tax levy, which includes Miami -Dade County, Miami -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. -15- MIAMI SHORES VILLAGE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 14. Property Taxes (Continued) All real and tangible personal property taxes are due and payable on November 1 each year or as soon as practicable thereafter as the assessment roll is certified by the County Property Appraiser. Miami -.Dade County mails to each property owner on the assessment roll a notice of the taxes due and Miami -Dade County also collects the taxes for the Village. Taxes may be paid upon receipt of such notice from Miami -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 Miami -Dade County are provided for in the laws of Florida. 15. Budgets and Budgetary Accounting Annual appropriated budgets are adopted for the general fund, three of the four special revenue funds, and the capital projects funds. 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. b) Public hearings are conducted to obtain taxpayer comments. c) Prior to October 1, the budget is legally enacted through passage of a Village Council resolution. d) The Village Council, by motion, may make supplemental appropriations for the year up to the amount of revenues in excess of those estimated. However, there were no supplemental appropriations in fiscal year 1999. e) Formal budgetary integration is employed as a management control device during the year for the general fund, certain special revenue funds and capital projects fund. f) Budgets for the general fund, certain special revenue funds and capital projects funds are adopted on a basis consistent with generally accepted accounting principles (GAAP) except for compensated absences. -16- MIAMI SHORES VILLAGE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 15. Budgets and Budgetary Accounting (Continued) 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. Unencumbered amounts may be 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. 16. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on management's knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. 17. Comparative Data 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. 18. Memorandum Only - Total Columns Total columns on the combined financial 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. NOTE 2. DEPOSITS AND INVESTMENTS All of the City's public deposits are held in qualified public depositories pursuant to Florida Statutes, Chapter 280, Florida Security for Public Deposits Act. Under the Act, all qualified public depositories are required to pledge eligible collateral. All collateral must be deposited with an approved financial institution. Any losses to public depositors are covered by applicable -17- MIAMI SHORES VILLAGE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 2. DEPOSITS AND INVESTMENTS (Continued) deposit insurance, sale of securities pledged as collateral and, if necessary, assessments against other qualified public depositories of the same type as the depository in default. When public deposits are made in accordance with Chapter 280, no public depositor shall be liable for any loss thereof. All deposits of the City are considered insured or collateralized and therefore are not subject to risk categorization in accordance with GASB Statement No. 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. At year end, the carrying value of investment balances not subject to risk categorization were as follows: State Board Investment Pool Common Stock Trust Fund Pool Bond Trust Fund Pool Total investments $ 2,427,256 10,570,864 6,767,660 $19,765,780 A reconciliation of cash and cash equivalents and investments as shown on the combined balance sheet follows: Cash and cash equivalents $ 5,182,959 Cash with fiscal agent 3,134,027 Cash with pension trustee 1,186 Investments 17,338,524 $25,656,696 Carrying amount of deposits $ 5,890,916 Carrying amount of investments 19,765,780 $25,656,696 NOTE 3. RECEIVABLES The City has receivables arising from various taxes and services provided to its residents. Total receivables amounted to $769,206 with an allowance of $117,507. M MIAMI SHORES VILLAGE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 4. DUE TO/FROM OTHER FUNDS Interfund receivables and payables at September 30, 1999 were as follows: Fund Receivables Payables General fund $114,856 $132,500 Local option gas tax fund - 114,856 1999 General Obligation bond fund 66,440 - Debt service fund 65,659 - General employee pension fund 401 $241-356 $247,356 NOTE 5. FIXED ASSETS Changes in general fixed assets during the year are as follows: Depreciation is not required and has not been provided on general fixed assets The following is a summary of proprietary fund type fixed assets: Drainage improvements Less accumulated depreciation -19- Enterprise Funds September 30, September 30, 1999 1998 $307,322 $307,322 7,683 - $299,639 $307,322 Balance Balance September 30, September 30, 1998 Additions Deletions 1999 Land $ 718,531 $ - $ - $ 718,531 Buildings 3,685,815 313,864 - 3,999,679 Improvements other than buildings 2,613,728 217,493 - 2,831,221 Equipment 3,964,690 813,888 - 4,778,578 Total $10,982,764 $1,345,245 $ - $12,328.009 Depreciation is not required and has not been provided on general fixed assets The following is a summary of proprietary fund type fixed assets: Drainage improvements Less accumulated depreciation -19- Enterprise Funds September 30, September 30, 1999 1998 $307,322 $307,322 7,683 - $299,639 $307,322 MIAMI SHORES VILLAGE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 6. LONG -TERM DEBT a. Summary of Long -Term Debt Long -term debt at September 30, 1999 was comprised of the following: 1999 General Obligation bonds issued via the Florida Municipal Loan Council. Principal is due annually over 30 years at various amounts, commencing April 1, 2000 and ending April 1, 2029. The Bonds bear interest at variable rates, 3.2% as of September 30, 1999 and are payable semi - annually commencing October 1, 1999. $3,200,000 Unsecured revenue note payable to a bank; principal and interest due in quarterly payments of $20,000. Note bears interest at 4.99% per annum, due July 1, 2006. 540,000 Revenue note payable to a bank; principal and interest due in quarterly payments of $9,822. Note bears interest at 4.56% per annum, due October 15, 2005. The note is collateralized by certain equipment. 205,276 Capital lease financed through an installment note; principal and interest due in quarterly payments of $2,398. Note bears interest at 5.59% per annum, due July 5, 2001. The note is unsecured and is payable out of general fund revenues. 18,209 Accrued vacation and sick leave 418,051 Workers' compensation claims payable 136,889 $4,518,425 Changes in general long -term debt during the year are as follows: Balance Balance September 30, September 30, 1998 Additions Reductions 1999 General obligation bond payable $ Revenue note payable 640,000 Revenue note payable - Capital lease obligations 26,584 Other 5,000 Subtotal 671,584 Accrued vacation and sick leave 384,604 Workers' compensation claims 256,210 Total $1,312 398 -20- $3,200,000 $ - $3,200,000 - 100,000 540,000 234,321 29,045 205,276 - 8,375 18,209 - 5,000 - 3,434,321 142,420 3,963,485 352,270 318,823 418,051 - 119,321 136,889 $3,786,591 $580,564 $4518,425 MIAMI SHORES VILLAGE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 6. LONG -TERM DEBT (Continued) b. Summary of Future Debt Service Requirements The annual debt service requirements to maturity for all long -term debt are as follows: Fiscal year ending September 30: 2000 2001 2002 2003 2004 Thereafter Principal Interest Total $ 174,334 $ 184,812 $ 359,146 173,857 177,039 350,896 175,661 169,314 344,975 174,884 161,584 336,468 176,502 153,752 330,254 3,088,247 2,227,053 5,315,300 $3,963.485 $3,073,554 $7037.039 NOTE 7. COMMITMENTS, CONTINGENCIES AND SUBSEQUENT EVENTS a. Legal Matters The Environmental Protection Agency has filed an action against several entities including the Village regarding oil sent to a Broward site, which became contaminated over time. The Village, along with other responsible parties, has joined in the clean -up process. In addition, the Village initiated a lawsuit against its insurance carrier to obtain reimbursement for defense costs and to obtain indemnity. Recently, the Village and the insurance carrier reached a conditional settlement for full and final settlement of all indemnity claims including future liability at the petroleum products site, as well as attorney's fees. As such, in the opinion of legal counsel and management, the liability, which may arise from this action, would not result in losses, which would materially affect the financial position or results of operations of the Village. The Village has several other 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. b. Workers' Compensation Claims The Village has a commitment to Miami -Dade County for a prior workers compensation claim for $154,331 as of September 30, 1999. The current portion of this claim is $17,442, which is recorded in the general fund. The long -term portion of $136,889 is accounted for in the general long -term debt account group. The Village makes annual payments to Miami - Dade County Risk Management on a reimbursable basis. -21- MIANII SHORES VILLAGE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE S. COM IITNIENTS, CONTINGENCIES AND SUBSEQUENT EVENTS (Continued) c. Employment Contract Effective October 7, 1998, the Village entered into a year -to -year employment contract with its Village Manager that provides for an annual salary, adjusted for cost -of- living increases, and certain benefits. The Village maintains the right at any time, for any reason, to replace the employee with another Village Manager and rehire the employee to his prior position within the Village. d. Contingent Liabilities Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies. While no matters of non - compliance were disclosed by the audit, grantor agencies may subject grant programs to additional compliance tests, which may result in disallowed costs. In the opinion of management, future disallowances of current grant expenditures, if any, would not have a material adverse effect on the Village's financial condition. e. Construction Commitments During fiscal year ended September 30, 1999, the Village commenced construction of its new $3,200,000 aquatic center with the proceeds from $3,200,000 of the general obligation bonds. The spouse of a Village council member has a non - voting ownership interest in one of the contractors selected to perform work on the Village's aquatic center. The transaction with this contractor was entered into at arms- length. f. Police Pension System During fiscal year 2000, the Village will establish a new Police Pension System to comply with State Law 99 -1. This new legislation mandates that governments must segregate police pension systems from general employees no later than December 31, 1999. g. Sanitation Enterprise Fund Effective October 1, 1999, the Village established the Sanitation Enterprise Fund to record the full costs of operations and capital needs for the Village's sanitation operation. The fund was established to permit the Village to capitalize all assets related to the sanitation or waste removal operations, previously recorded as a general fund division. h. Sale of Land In November 1999, the Village sold land for $35,000. The Village recognized a gain of $5,000 on this transaction. -22- MIAMI SHORES VILLAGE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 8. POST- RETIREMENTS BENEFITS Plan Description The Village provides post- retirement health benefits in accordance with the requirements of an agreement between the Village and the Miami -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. The employer makes benefit payments 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 $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 50/50 basis. The total cost of the retiree health benefit is determined by periodic actuarial review. The employee contribution was $4.05 per employee per week, payable by payroll deduction during the year ended September 30, 1999. 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. Funding Policy As of September 30, 1999, there were 37 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 6.5 %, which are consistent with the pension plan. Total contributions for the year were approximately $7,000 including employee contributions. As of September 30, 1999, the Plan had net assets of approximately $62,000 available for benefits and no liabilities. -23- MIAMI SHORES VILLAGE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 8. 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 judgment not to exceed $100,000 and in each occurrence not to exceed $200,000. The amount of settlements for each of the past three fiscal years did not exceed insurance coverage. There was no reduction in insurance coverage from coverage in the prior year. 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 two years are as follows: NOTE 9. EMPLOYEES' RETIREMENT SYSTEM Basis of Accounting The Village's Employees' Retirement Systems financial statements are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which the contributions are due. Employer contributions to each plan are recognized when due and the employer has made a formal commitment to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of the Plan. Method Used to Value Investments Investments are reported at fair value. Securities traded on a national or international exchange are valued at the last reported sales price. Net appreciation (depreciation) in fair value of investments, realized and unrealized gains (losses) are determined on the basis of specific cost. Within certain limitations as specified in the Plan, investment policy is determined by the Board of Trustees and is implemented by an investment advisor. The Board of Trustees uses the following guidelines: • Unlimited investments in bonds, notes or other obligations of the United States Government, State of Florida or political subdivision or agencies thereof, preferred stocks and money market investments. -24- 1999 1998 Unpaid claims, beginning $717,970 $ 665,015 Incurred claims (including IBNR's) 48,926 164,716 Claim payments (43,947 LLLL7 61 Unpaid claims, ending $722 949 $_717,970 NOTE 9. EMPLOYEES' RETIREMENT SYSTEM Basis of Accounting The Village's Employees' Retirement Systems financial statements are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which the contributions are due. Employer contributions to each plan are recognized when due and the employer has made a formal commitment to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of the Plan. Method Used to Value Investments Investments are reported at fair value. Securities traded on a national or international exchange are valued at the last reported sales price. Net appreciation (depreciation) in fair value of investments, realized and unrealized gains (losses) are determined on the basis of specific cost. Within certain limitations as specified in the Plan, investment policy is determined by the Board of Trustees and is implemented by an investment advisor. The Board of Trustees uses the following guidelines: • Unlimited investments in bonds, notes or other obligations of the United States Government, State of Florida or political subdivision or agencies thereof, preferred stocks and money market investments. -24- MIAMI SHORES VILLAGE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 10. EMPLOYEES' RETIREMENT SYSTEM (Continued) Method Used to Value Investments (Continued) • Investments in common stocks cannot exceed 50% of the total assets of the Plan on a cost basis. • Investments in corporate bonds must hold a rating in one of the three highest classifications by a major rating service and be listed on any one or more of the recognized national stock exchanges. Plan Description The Village is the administrator of a single - employer Public Employee Retirement System (PERS) established 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. Membership in each retirement system consisted of the following at October 1, 1998, the date of the latest actuarial valuation: 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. Subsequent to September 30, 1997, the amount of monthly retirement annuity for a police officer who retires or terminates subsequent to October 1,1997 and prior to September 30, 1998 will be equal to two and four - tenths percent (2.4 %) of the monthly average final compensation multiplied by the number of years of creditable services up to five (5); plus two and eight -five hundredths percent (2.85 %) of the monthly average final compensation multiplied by the number of years of creditable service beginning at six (6) years and up to twenty -five (25) years; plus one and nine tenths percent (1.9 %) of the monthly average final compensation multiplied by the number of years of creditable service over. twenty -five (25) -25- General Police Retirees and beneficiaries receiving benefits 28 10 Terminated plan members entitled to but not yet receiving benefits 3 - Active plan members 63 30 Total 94 40 Active employees: Fully- vested 22 16 Non - vested 41 14 63 30 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. Subsequent to September 30, 1997, the amount of monthly retirement annuity for a police officer who retires or terminates subsequent to October 1,1997 and prior to September 30, 1998 will be equal to two and four - tenths percent (2.4 %) of the monthly average final compensation multiplied by the number of years of creditable services up to five (5); plus two and eight -five hundredths percent (2.85 %) of the monthly average final compensation multiplied by the number of years of creditable service beginning at six (6) years and up to twenty -five (25) years; plus one and nine tenths percent (1.9 %) of the monthly average final compensation multiplied by the number of years of creditable service over. twenty -five (25) -25- MIAMI SHORES VILLAGE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 10. EMPLOYEES' RETIREMENT SYSTEM (Continued) Plan Description (Continued) years, but not to exceed a total of thirty (30) years of creditable service; plus two percent (2 %) of the monthly average final compensation multiplied by the number of years of creditable service over thirty-nine and one fourth (39.25) years. The employee's contribution shall not exceed 9% of his eamable compensation. Under no circumstances shall an employee receive an amount of monthly retirement annuity less than 2% times the total number of years of service. 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. Beginning October 1, 1997, police officer retirees will receive a 1% cost of living increase. Members who continue in employment past normal retirement date after fiscal year 1998 may elect to retire and enter the Deferred Retirement Option Plan (DROP). Each participant in the DROP has an account credited with benefits not received and investments earned. Participation in the DROP must end no later than 60 months after normal retirement date. The value of the drop accounts at September 30, 1999 was $68,776. Funding Policy General employees and police officers are required to contribute 6% and 9 %, respectively, of their salaries to the Plan. 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 actuarially determined. Village contribution limits are established by Village charter not to exceed one mill and may be amended only by special referendum. Annual Pension Cost and Net Pension Obligation As of October 1, 1997 (date of transition), the Village did not have a net pension obligation. As of September 30, 1999, the Village had made all of its required annual contributions and thus did not have a net pension obligation. The annual required contributions for the current year were determined as part of the October 1, 1997 actuarial valuation using the frozen entry age actuarial cost method. The actuarial assumptions included (a) 8% investment rate of return (net of administrative expenses) and (b) projected salary increases ranging from 6% - 7% per year. Both (a) and (b) included an inflation component of 4 %. The assumptions did not include post- retirement benefit increases. The actuarial value of assets was determined using market value less unrecognized capital appreciation, where capital appreciation is recognized at the rate of 20% per year. -26- MIAMI SHORES VILLAGE, FLORIDA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS (Continued) NOTE 10. EMPLOYEES' RETIREMENT SYSTEM (Continued) Annual Pension Cost and Net Pension Obligation (Continued) Three -Year Trend Information Annual Pension Percentage of Net Pension Fiscal Year Ending Cost (APC) APC Contributed Obligation 9/30/97 $249,327 100% $ - 9/30/98 253,370 100 - 9/30/99 220,408 100 - -27- REQUIRED SUPPLEMENTARY INFORMATION MIAMI SHORES VILLAGE, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION YEAR 2000 ISSUE SEPTEMBER 30, 1999 In accordance with GASB Technical Bulletin No. 98 -1, as amended, we are presenting the status of the year 2000 issue as it related to the Village. The Village has completed an inventory of computer systems and other electronic equipment that may be affected by the year 2000 issue and that are necessary to conducting Village operations. The Village has identified the following systems requiring year 2000 planning. • Awareness stage — establishing a budget and project plan for dealing with the year 2000 issue. • Assessment stage — identifying the systems and components for which year 2000 compliance work is needed. • Remediation stage — Making changes to systems and equipment. • Validation and testing stage — validating and testing the changes that were made during the remediation stage has been completed. Through the date of the financial statements, the Village has not experienced any computer system problems related to the date rollover. However, because of the unprecedented nature of the year 2000 issue, its effects and the success of related remediation efforts of the Village or parties with whom the Village does business, will not be fully determined until the year 2000 and thereafter. No MIAMI SHORES VILLAGE, FLORIDA PENSION TRUST FUNDS SCHEDULE OF FUNDING PROGRESS -29- Actuarial Actuarial Accrued Percentage Value Liability Unfunded Actuarial of (AAL) AAL Valuation Assets Entry Age (UAAL) Date La) 02) -10.5% 10/1/93 $ 9,539,357 $ 9,211,131 $ (328,226) 10/1/94 9,380,878 9,436,798 55,920 10/1/95 10,193,957 10,100,353 (93,604) 10/1/96 11,043,748 10,651,327 (392,421) 10/1/97 11,990,762 11,411,093 (579,669) 10/1/98 12,753,331 12,112,534 (640,797) -29- UAAL as a Percentage of Funded Covered Covered Ratio Payroll Payroll �) b -a /c 103.6% $ 3,111,680 -10.5% 99.4% 2,925,881 1.9% 100.9% 2,900,044 -3.2% 103.7% 3,333,873 -11.8% 105.1% 3,382,347 -17.1% 105.3% 3,078,948 -20.8% MIAMI SHORES VILLAGE, FLORIDA PENSION TRUST FUNDS SCHEDULE OF CONTRIBUTIONS FROM EMPLOYER AND OTHER CONTRIBUTING ENTITIES Year Annual Contribution Contribution Ended Required from from Percentage September 30, Contribution Employer State Contributed 1994 $ 238,913 $ 214,712 $ 24,201 100% 1995 248,001 225,844 22,157 100 1996 262,633 240,362 22,271 100 1997 249,327 223,938 25,389 100 1998 253,370 224,865 28,806 100 1999 220,229 190,036 28,907 99 The information presented in the required supplemental schedules was determined as part of the actuarial valuations at the dates indicated. Additional information as of the latest actuarial valuation follows. Valuation date 10/1/98 Actuarial cost method Frozen Entry Age Amortization method N/A Remaining amortization period N/A Asset valuation method 5 year smoothed market Difference betwcen actual and expected return recognized Actuarial assumptions: Investment rate of return* 8% per year compounded annually, net of investment related expenses Projected salary increases* 6.50% police; 5.50% general Cost of living adjustments N/A *Includes inflation 4% -30- r j j COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES j 1 GENERAL FUND The General Fund is the principal operating 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. 1 / MIAMI SHORES VILLAGE, FLORIDA GENERAL FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 1999 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1998) -31- 1999 1998 ASS„ SETS Cash and cash equivalents $ 2,932,447 $ 2,372,533 Receivables, net 584,185 835,968 Due from other governments: State of Florida 45,124 80,924 Federal Government - 10,401 Miami -Dade County 4,701 9,037 Due from other funds 132,500 - ' Prepaid costs 9,123 11,176 Inventories 24,229 33,017 Total assets $ 3,732,309 $ 3,353,056 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 247,607 $ 159,865 Accrued liabilities 94,660 145,178 Workers compensation claims payable 17,442 41,797 Deferred revenues 631,374 692,626 Due to other funds 114,856 - Other liabilities 57,425 - Total liabilities 1,163,364 1,039,466 Fund balances: Reserved for: Encumbrances 105,452 183,601 Subsequent years' expenditures - 68,122 Prepaid costs 9,123 11,176 Inventories 24,229 33,017 Aquatic center 226,595 - Code violations 174,906 - Unreserved: Designated for capital outlay - 1,163,358 Designated for future use 1,128,640 - Designated for emergencies and contingencies 900,000 854,316 Total fund balances 2,568,945 2,313,590 Total liabilities and fund balances $ 3,732,309 $ 3,353,056 -31- ML4PM SHORES VILLAGE, FLORIDA GENERAL FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FISCAL YEAR ENDED SEPTEMBER 30, 1999 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1998) -32- 19-9 1998 Revenues: Taxes $ 3,072,144 $ 4,525,306 Licenses and permits 231,674 211,459 Intergovernmental revenues 942,571 1,203,077 Charges for services 2,145,903 2,304,259 Fines and forfeitures 111,930 205,237 Miscellaneous revenue 260,978 225,576 Interest 150,028 145,072 Total revenues 6,915,228 8,819,986 Expenditures: Current: General government 894,358 991,327 Public safety 3,026,323 3,008,694 Public services 2,143,106 2,169,676 Culture /recreation 1,539,543 1,516,542 Capital outlay 160,080 353,381 Debt service: Principal 18,076 31,374 Interest 4,683 3,500 Total expenditures 7,786,169 8,074,494 Excess (deficiency) of revenues over expenditures (870,941) 745,492 Other financing sources (uses): Operating transfers in 1,511,778 20,000 Operating transfers out (133,260) (374,656) Total other financing sources (uses) 1,378,518 (354,656) Excess of revenues over expenditures and other financing sources (uses) 507,577 390,836 Fund balance, beginning 2,313,590 1,922,754 Equity transfers out (252,222) - Fund balance, ending $ 2,568,945 $ 2,313,590 -32- MIAMI SHORES VILLAGE, FLORIDA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL FISCAL YEAR ENDED SEPTEMBER 30, 1999 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1998) Revenues: Taxes: Property taxes, current and delinquent Franchise fees Utility taxes Total taxes Licenses and permits: Business licenses Building permits Other licenses and permits Total licenses and permits Intergovernmental revenues: State shared revenues: COPS Fast Grant Law Enforcement Grant Law Enforcement Block Grant Juvenile Facility Grant Federal Disaster Relief Grand Library Grant Summer Jobs Program Grant Recreation Mitigation Grant Cigarette taxes State revenue sharing Beverage licenses Local government half cent sales tax Department of transportation (landscape maintenance) Local option gas tax trust FEMA Grant County shared revenues: County occupational licenses School crossing programs Recycling grant Total intergovernmental revenues Charges 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 153,832 Budgetary Variances Budgetary 6,000 Basis Favorable Basis Bueet Actual (Unfavorable) Actual 157,000 1999 (3,794) 1998 $ 3,096,789 $ 3,072,144 $ (24,645) $ 3,032,661 - - 67,728 506,824 - - - 985,821 3,096,789 3,072,144 (24,645) 4,525,306 -33- (Continued) 70,000 64,100 (5,900) 68,176 96,000 127,684 31,684 107,250 32,900 39,890 6,990 36,033 198,900 231,674 32,774 211,459 23,883 12,750 (11,133) 4,707 43,309 32,059 (11,250) - 7,500 7,500 - 57,500 6,900 16,500 9,600 - - - - 10,000 1,376 1,376 36,104 - 6,000 6,000 - 11,348 10,789 (559) 11,136 218,416 221,199 2,783 232,045 700 972 272 1,538 530,370 562,571 32,201 540,396 17,318 21,648 4,330 17,318 - - - 238,736 - - - 13,599 16,500 20,293 3,793 16,772 19,500 28,704 9,204 18,671 1,000 210 (790) 4,555 896,744 942,571 45,827 1,203,077 153,832 155,456 1,607,403 1,621,408 6,000 22,130 342,129 346,909 2,109,364 2,145,903 1,624 138,018 14,005 1,821,280 16,130 5,871 4,780 339,090 36,539 2,304,259 60,000 111,930 51,930 74,310 125,000 - (125,000) 130,927 185,000 111,930 (73,070) 205,237 157,000 153,206 (3,794) 155,419 36,250 107,772 71,522 70,157 193,250 260,978 67,728 225,576 145,072 150,028 4,956 145,072 $ 6,825,119 $ 6,915,228 $ 90,109 $ 8,819,986 -33- (Continued) MIAMI SHORES VILLAGE, FLORIDA GENERALFUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL (Continued) FISCAL YEAR ENDED SEPTEMBER 30, 1999 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1998) Expenditures: Current: General government: Village council: Personnel services Operating expenses Village attomey: Operating expenses Village manager: Personnel services Operating expenses Village clerk: Personnel services Operating expenses Capital outlay Finance: Personnel services Operating expenses Capital outlay Marketing: Personnel services Operating expenses Capital outlay Other general government: Non - departmental: Personnel services Operating expenses Non - operating expenses Capital outlay Human resources: Personnel services Operating expenses Capital outlay Summer Program: Personnel services Operating expenses Total general government Budgetary Variances Budgetary Basis Favorable Basis Budeet Actual (Unfavorable) Actual 1999 1998 $ 5 $ 5 $ - $ 1 10,880 5,353 5,527 8,101 10,885 5,358 5,527 8,102 107,000 148,901 (41,901) 150,534 107,000 148,901 (41,901) 150,534 116,659 110,682 5,977 140,576 9,230 6,322 2,908 15,168 125,889 117,004 8,885 155,744 88,017 88,781 (764) 85,266 15,933 11,543 4,390 17,584 5,000 4,820 180 4,515 108,950 105,144 3,806 107,365 203,923 176,052 27,871 179,932 74,789 64,266 10,523 53,823 7,281 3,308 3,973 5,086 285,993 243,626 42,367 238,841 48,864 31,262 17,602 39,196 36,200 32,510 3,690 51,573 - 490 (490) - 85,064 64,262 20,802 90,769 4,000 2,376 1,624 10,476 259,273 193,836 65,437 126,720 - - - 56,000 41,000 531 40,469 1,281 304,273 196,743 107,530 194,477 18,000 19,844 (1,844) 21,701 18,000 19,844 (1,844) 21,701 - 2,625 (2,625) 35,075 - - 1,029 - 2,625 (2,625) 36,104 1,046,054 903,507 142,547 1,003,637 34- (Continued) MIAMI SHORES VILLAGE, FLORIDA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL (Continued) FISCAL YEAR ENDED SEPTEMBER 30, 1999 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1998) Public safety: Law enforcement: Personnel services Operating expenses Capital outlay Non - operating expenses Building and zoning: Personnel services Operating expenses Capital outlay Code enforcement: Personnel services Operating expenses Capital outlay Total public safety Public services: Public works administration: Personnel services Operating expenses Capital outlay Street maintenance: Personnel services Operating expenses Capital outlay Solid waste collection: Personnel services Operating expenses Capital outlay Fleet maintenance: Personnel services Operating expenses Capital outlay Total public services Budgetary Variances Budgetary Basis Favorable Basis Budeet Actual (Unfavorable) Actual 1999 1998 $ 2,647,581 $ 2,545,898 $ 101,683 $ 2,521,330 252,691 223,555 29,136 230,103 82,081 70,182 11,899 12,632 - - - 2,933 2,982,353 2,839,635 142,718 2,766,998 131,467 112,996 50,703 44,913 1,000 - 183,170 157,909 18,471 133,637 5,790 36,357 1,000 - 25,261 169,994 98,693 83,470 15,223 79,723 20,045 15,491 4,554 8,095 1,500 181 1,319 - 120,238 99,142 120,057 87,818 3,285,761 3,096,686 189,075 3,024,810 271,319 215,098 27,198 1 4,379 33,000 12,311 331,517 241,788 134,051 141,521 241,355 198,992 248,150 8,586 623,556 349,099 699,121 655,042 815,796 653,245 925 - 1,515,842 1,308,287 56,221 300,567 12,819 16,289 20,689 - 89,729 316,856 (7,470) 128,748 Al 161 23n,n 1 7 239,564 176,734 274,457 535,899 44,079 638,760 162,551 613,709 925 1,695 207,555 1,254,164 174,272 176,285 (2,013) 171,532 78,322 88,544 (10,222) 68,771 47,500 - 47,500 2,795 300,094 264,829 35,265 243,098 2,771,009 2,164,003 607,006 2,350,017 (Continued) -35- MIAMI SHORES VILLAGE, FLORIDA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL (Continued) FISCAL YEAR ENDED SEPTEMBER 30, 1999 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1998) Recreation: Personnel services 631,258 Budgetary Variances Budgetary Operating expenses 268,384 Basis Favorable Basis Non - operating expenses Budeet Actual (Unfavorable) Actual Capital outlay 14,477 1992 8,340 1998 Culture /recreation: 914,119 853,496 60,623 906,751 Parks: Personnel services $ 288,854 $ 258,449 $ 30,405 $ 244,141 Operating expenses 125,204 82,773 42,431 61,667 Capital outlay 23,567 3,564 20,003 50,420 437,625 344,786 92,839 356,228 Recreation: Personnel services 631,258 594,976 36,282 626,983 Operating expenses 268,384 252,383 16,001 243,325 Non - operating expenses - - - 2,016 Capital outlay 14,477 6,137 8,340 34,427 Total culture /recreation 914,119 853,496 60,623 906,751 Recreation maintenance: Personnel services 101,756 98,614 3,142 95,447 Operating expenses 24,774 23,502 1,272 21,397 Capital outlay - - - 7,634 126,530 122,116 4,414 124,478 Library: Personnel services 192,834 192,360 474 188,271 Operating expenses 42,002 36,486 5,516 35,502 Capital outlay 51,368 49,970 1,398 56,162 $ 8,080,731 286,204 278,816 7,388 279,935 Total culture /recreation 1,764,478 1,599,214 165,264 1.667.392 Debt service: Principal 129,911 18,076 111,835 31,374 Interest 15,825 4,683 11,142 3,501 Total debt service 145,736 22,759 122,977 34,875 Total expenditures $ 9,013,038 $ 7,786,169 $ 1,226,869 $ 8,080,731 -36- SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for specific revenues that are legally restricted to expend for a particular purpose. Excise Tax Fund - This fund accounts for the monthly and semi- annual receipts for public service taxes and franchise fees. Local Option Gas Tax Fund — This fund accounts for the revenues and expenditures related to the six -cent and additional three -cent taxes applied to petroleum products sold in Miami -Dade County. Grant Fund — This fund accounts for the revenues and expenditures related to various grant programs and awards. Hurricane Fund This fund accounts for revenues and expenditures related to storms receiving disaster declarations from the Federal Emergency Management Agency (FEMA). MIAMI SHORES VILLAGE, FLORIDA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1999 sc1FA Local Option Excise Gas Tax Tax Grant Hurricane Fund Fund Fund Fund Totals Assets: Cash and cash equivalents $ - $ 172,725 $ 20,873 $ (15,569) $ 178,029 Receivables 67,514 - - - 67,514 Due from other funds - 114,856 - - 114,856 Total assets $ 67,514 $ 287,581 $ 20,873 $ (15,569) $ 360,399 Liabilities and fund balances: Liabilities: Accounts payable $ - $ - $ - $ 1,408 $ 1,408 Accrued liabilities - - 14,458 - 14,458 Total liabilities - - 14,458 11408 15,866 Fund balances: Unreserved fund balance (deficit) 67,514 287,581 6,415 (16,977) 344,533 Total fund balances 67,514 287,581 6,415 (16,977) 344,533 Total liabilities and fund balances S 67,514 $ 287,581 $ 20,873 $ (15,569) $ 360,399 sc1FA MIAMI SHORES VILLAGE, FLORIDA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE SEPTEMBER 30, 1999 Local Option Excise Gas Tax Tax Grant Hurricane Fund Fund Fund Fund Totals Revenues: Franchise fees $ 544,565 $ - $ - $ - $ 544,565 Utility taxes 1,034,727 - - - 1,034,727 Other taxes - 237,996 - - 237,996 Intergovernmental revenues - - 6,901 - 6,901 Total revenues 1,579,292 237,996 6,901 - 1,824,189 Expenditures: Operating - 28,914 486 16,977 46,377 Capital outlay - 23,723 - - 23,723 Total expenditures - 52,637 486 16,977 70,100 Excess (deficiency) of revenues over expenditures 1,579,292 185,359 6,415 (16,977) 1,754,089 Other financing uses: Operating transfers out (1,511,778) - - - (1,511,778) Total other financing uses (1,511,778) - - - (1,511,778) Excess (deficiency) of revenues over expenditures and other financing uses 67,514 185,359 6,415 (16,977) 242,311 Fund balances, beginning - - - _ _ Equity transfer in - 102,222 - - 102,222 Fund balances (deficit), ending $ 67,514 $ 287,581 $ 6,415 $ (16,977) $ 344,533 -38- Q A a O a w w C7 W y W. W a .a O d W w CE _a «-1 Q H U d Q z a C, LL � z o M z x w U a zz U) Gam_' v, W W C: Fa- W Q a a � � a W Q W t% LwwzS.I W F- z w 2 w f-- a cn 0 z 0 U �t r rn o � � c 00 00 00 a a oC 0 0 0 %.o r V') r Vl 00 U Cr, ol 00 a, 00 N a� N r- 0 M N P. 69 6) r M M "0 00 00 00 �O N d\ O a0 O N N 1 r r 00 cdl r O- Oc 7 r O N F^ N N N V'1 O N -. o0^ .-. N .-. ...r 69 O O 00 O 00 O 00 00 O O O r M N 0 N O N N O O O vl �O v1 lr N vi vl O N N N r O N � vl C7, ~ NO N 'cY ~ 7 6) ...i �'' 6 ) (71 'cY O �T_ t N U v O O 0 0 > > w f 69 w 00 vI �I �I I �I I I U 69 69I i i O Cl O O I I O I 69 a\ O\ n ., O O O 00 00 M M c cV o r r 00 00 = r > > K > w C [^ 69 69 cd r r �r M r o 0 a, r- 00 M N kn v� M M N N vl 00 00 ¢yl N N 69 69 id U 00 00 O 00 00 a N N O N N 7 V1 O �!1 O O V'1 O V1 O N N 00 N N a r r Oa - a� a a, a, o, r cE ~O > N r O O �D q > > � G C O w a r DD 00 00 cd �r v o: a, U ^' z O O yr N as N N L b N 4J U � k U N U U O C ti > O > CCO L O y C O d cID y m E N X 00x N > N y0.., bA 0 X U pp 'C N G .�.. Y> i.. G p y C 00 0 U �' b�0 i +0+ 'fl i 0 w Cd (C O v a`i .�.. w X0.6 °OU x �O >ow a w O x w w CAPITAL PROJECTS FUND The capital projects fund accounts for financial resources used for acquisitions and improvements to capital facilities. Capital Improvement Fund — This fund is used to account for major capital acquisitions and projects to improve the Village. 1999 General Obligation Bond Fund - This fund is used to account for the construction of the aquatic center funded by issuance of general obligation bonds through the Florida Municipal Loan Council. i MIAMI SHORES VILLAGE, FLORIDA CAPITAL PROJECTS FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 1999 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1998) ASSETS Cash and cash equivalents Cash with fiscal agent Bond issue costs Other assets Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Accrued interest payable Due to other funds Total liabilities Fund equity: Reserved for: Encumbrances Recreation department Waste department Unreserved: Designated for capital outlay Total fund balances Total liabilities and fund balances -40- 1999 General Capital Obligation Improvement Bond Totals Fund Fund 1999 1998 $ 465,303 $ 39,301 $ 504,604 $ 691,831 - 3,134,027 3,134,027 - - 77,267 77,267 - 967 967 $ 466,270 $ 3,250,595 $ 3,716,865 $ 691,831 $ 6,706 $ 55 $ 6,761 $ 5,623 - 11,294 11,294 - - 66,440 66,440 - 6,706 77,789 84,495 5,623 - - 154,383 294,706 - 294,706 294,705 123,500 - 123,500 123,500 41,358 3,172,806 3,214,164 113,620 459,564 3,172,806 3,632,370 686,208 $ 466,270 $ 3,250,595 $ 3,716,865 $ 691,831 MIAMI SHORES VILLAGE, FLORIDA CAPITAL PROJECTS FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FISCAL YEAR ENDED SEPTEMBER 30, 1999 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1998) Revenues: Intergovernmental revenues Interest Total revenues Expenditures: Current: Operating expenditures Capital outlay Culture /recreation Debt service: Principal retirement Interest Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources: Operating transfers in Capital loan proceeds Total other financing sources Excess (deficiency) of revenues and other financing sources over expenditures Fund balances, beginning Fund balances, ending 1999 Capital General Tglaia Improvement Obligation 1999 Fund Bond Fund $ 65,000 $ 3,200,000 $ 3,265,000 $ - 31,848 - 31,848 44,579 96,848 3,200,000 3,296,848 44,579 2,831 27,194 30,025 1,220 661,305 - 661,305 134,512 - - - 69,704 19,363 - 19,363 192,842 7,581 - 7,581 52,745 691,080 27,194 718,274 451,023 (594,232) 3,172,806 2,578,574 (406,444) 133,260 - 133,260 374,656 234,328 - 234,328 - 367,588 - 367,588 374,656 (226,644) 3,172,806 2,946,162 (31,788) 686,208 - 686,208 717,996 $ 459,564 $ 3,172,806 $ 3,632,370 $ 686,208 -41- N 7 V) v') !` ON �O O N 00 N r- O1 rn �o t` �o r- 00 U N OO M C� lO o0 V't N llO Vl t., c w N 00 M N M M M cd " ON N � N�o 00 N M N ' w O > m ^" .-. 00 r' Cl > M M N N W r. 69 by O 00 00 V'1 Vl M "-+ O 00 00 N O It rt N O �O N 00 �O ny O 00 00 O M M Vl N V') N M V1 y Vn ;- � O O\ i- 00 00 M QI M ON M �O [� cn M N N �O t` v7 N M D\ M M N N 69 69 O O O O O 7 I M \ N - r p v- vt O N N � oo D\ N M M M M '� 69 69 00 O 00 0°0 0°0 w b� 6, U o o OO N o°o N C7, ^ Q W W M M M M 0. � � 69 69 W W cn WZ W Q x o 0 0 0 0 d FWm ° ° N U W M M M M Q C� 69 O O 0. Q Q a.) O o0 N (= O� �o cn C� t� O� O N O N 00 .-. O N 00 a d W L W U O C 4, N 00 M M x Q W ol w .. v rq Ci, > > u w 0 0 z z U C� > O t O 00 00 .--i to M O N C) 00 00 Z d �" cd O O DO ct 00 M 00 O M \O 00 M W) 00 O M \O N 00 x N M en r` 07 U U to M 01 ON CN O Q y Q - N M N_ U Q cd 69 o o 0 o 0 o o 0 0 0 0 y � o k ° W) � ° 0 0 o o 0 0 0 l-- M O M V"1 O\ Vj V'j vj V') �O N N N 69 6'i m N U H N V O O O N O p En q C > > t N F t«+ O r. > 1U-i H W N. a o U U b = W Y w y ^ O Ly >i N O U U N O 4r G cu > .. bn a Fj b "° Cd 'mo a°�o a o ;� y o ,�, d p b b > a a cu R u a rn v> W a, a s .. O U Q O ca O U U x W W o W N 7 PROPRIETARY FUND TYPES ENTERPRISE FUND The stormwater utility fund accounts for the operations and maintenance of the stormwater system. MIAMI SHORES VILLAGE, FLORIDA ENTERPRISE FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 1999 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1998) ASSETS 1999 1998 Cash and cash equivalents $ 243,029 $ 21,155 Due from other governments 53,112 50,685 Fixed assets, net 299,639 307,322 Total assets $ 595,780 $ 379,162 LIABILITIES AND EQUITY Liabilities: Accounts payable $ 431 $ 22,220 Equity: Retained earnings 595,349 356,942 Total equity $ 595,780 $ 379,162 -43- MIAMI SHORES VILLAGE, FLORIDA ENTERPRISE FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS FISCAL YEAR ENDED SEPTEMBER 30, 1999 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1998) 1999 1998 Revenues: Charges for services $ 126,951 $ 117,843 Operating expenses: Personnel expenses - 28,816 Administrative and general 36,464 20,921 Depreciation 7,683 - Total operating expenses 44,147 49,737 Operating income 82,804 68,106 Non - operating income: Interest income 5,603 5,341 Net income 88,407 73,447 Retained earnings, beginning 356,942 283,495 Equity transfer in 150,000 - Retained earnings, ending $ 595,349 $ 356,942 -44- INTERNAL SERVICE FUND The self - insurance fund accounts for the accumulation and allocation of costs associated i with insurance. MIAMI SHORES VILLAGE, FLORIDA INTERNAL SERVICE FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 1999 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1998) ASSETS 1999 1998 Cash and cash equivalents $ 738,273 $ 722,066 Land held for sale 30,000 30,000 Other assets - 5,942 Total assets $ 768,273 $ 758,008 LIABILITIES AND EQUITY Liabilities: Accounts payable $ 15,324 $ 10,038 Estimated insurance claims 722,949 717,970 Total liabilities 738,273 728,008 Equity: Retained earnings - reserved 30,000 30,000 Total liabilities and equity $ 768,273 $ 758,008 -45- MIAMI SHORES VILLAGE, FLORIDA INTERNAL SERVICE FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS FISCAL YEAR ENDED SEPTEMBER 30, 1999 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1998) 1999 1998 Charges for services $ 477,982 $ 456,000 Operating expenses: Insurance premiums 412,654 261,570 Claims 87,649 139,715 Administrative 14,265 97,860 Total operating expenses 514,568 499,145 Operating loss (36,586) (43,145) Non - operating income: Interest income 36,586 43,145 Net income Retained earnings, beginning 30,000 30,000 Retained earnings, ending $ 30,000 $ 30,000 -46- FIDUCIARY FUND TYPES 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 Fund - 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 law enforcement purposes. Pension Trust Fund: Pension Trust Fund - To account for the accumulation of resources for pension benefit payments to retirees of Miami Shores Village. 't O - M O N � O �o I'D 00 00 � O rY O M N O l— r- It — — M 00 to O 00 O l— Ile 00 N \- tr N 00 M 'N 01 N �I N r N N N �J 01 .. r- - N kr 1�6 kr 1�6 id �I 69 yq 69 � [l- 00 N M N tr) O D1 kn \C [— D1 M \0 N --' V) ,--1 ":t V) T ON O1 M 00 I- I- 00 06 M 00 N qt V) N M N �6 Lr I-- (- M 1�6 N V) O\ V) M O1 M 00 01 -w r- � t (� 69 b4 64) bq ' 00 N N O 110 n O h oc N 'IT r- 00 o0 a; .-. a I a O I M N N � 'IT 0000 - 69 69 69 O\ -+ cu N M ON ' N N cY v'i � , , r , , r- , Uy0. O M M \C O �y W a o ``) N O It O O O O w 611) 64 b9 bq GO w W 0 0 0 C\ o � y �t a Zz�O U Ha c) I w a x es u a 1 ¢ ¢ d Cd w 64 fF, 69 69 l� a) ,7, �4 ¢ 601) 9q p Cd V 't O Q1 01 M M d N M O\ N M 00 I— 01 N O Q y0 It It M 10 M N N Hbq 69 W U z a d as co -O N CCd w O^ O cad rn N Q" aa� ) 0 Gl cd -v rA o .^ o° o Q. C.) 0 co cz o H 0 N LIS U Cd U O j w MIAMI SHORES VILLAGE, FLORIDA EXPENDABLE TRUST FUNDS COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FISCAL YEAR ENDED SEPTEMBER 30, 1999 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1998) Law Police Enforcement General Insurance Training Police Totals Trust Trust Trust Forfeiture 1222 1998 Revenues: Fines and forfeitures $ 30,700 $ - $ 2,996 $ - $ 33,696 $ 25,193 Contributions - 8,062 - - 8,062 6,811 Miscellaneous revenue - - - - - 700 Interest - - - 18,028 18,028 9,645 Confiscated property - - - 205,676 205,676 262,676 Total revenues 30,700 8,062 2,996 223,704 265,462 305,025 Expenditures: Current: Public safety - - 1,243 152,527 153,770 14,354 Culture /recreation 7,887 - - - 7,887 17,809 Total expenditures 7,887 - 1,243 152,527 161,657 32,163 Excess of revenues over expenditures 22,813 8,062 1,753 71,177 103,805 272,862 Other financing uses: Operating transfers out - - - - - (20,000) Total other financing uses - - - - - (20,000) Excess of revenues over expenditures and other financing uses 22,813 8,062 1,753 71,177 103,805 252,862 Fund balances, beginning 20,133 55,477 2,292 333,480 411,382 158,520 Fund balances, ending $ 42,946 $ 63,539 $ 4,045 $ 404,657 $ 515,187 $ 411,382 -48- MIAMI SHORES VILLAGE, FLORIDA PENSION TRUST FUND COMPARATIVE STATEMENTS OF PLAN NET ASSETS SEPTEMBER 30, 1999 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1998) ASSETS Cash with pension trustee Investments Other assets Total assets LIABILITIES AND NET ASSETS HELD IN TRUST FOR PENSION BENEFITS Liabilities: Accounts payable Due to other funds Total liabilities Net assets held in trust for pension benefits -49 Totals 1999 1998 $ 1,186 $ 27,008 17,338,524 15,756,321 1,012 88 17 2A0 777 1c 7Q2 A1-7 28,861 A01 25,256 W� -N $ 17,311,460 $ 15,758,161 GENERAL FIXED ASSETS ACCOUNT GROUP To account for fixed assets other than those accounted for in Proprietary Funds or Trust Funds. i MIAMI SHORES VILLAGE, FLORIDA SCHEDULES OF GENERAL FIXED ASSETS - BY SOURCE SEPTEMBER 30, 1999 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1998) General fixed assets: Land Buildings Improvements other than buildings Equipment Total general fixed assets Investment in general fixed assets: General fund Special revenue fund Capital projects fund Country Club Gifts and donations Confiscated property Insurance fund Total investment in general fixed assets -50- 1999 $ 718,531 3,999,679 2,831,221 4,778,578 $ 12,328,009 $ 5,788,002 4,034,577 23,723 1,820,517 53,283 592,393 15.514 WSJ: $ 718,531 3,685,815 2,613,728 3,964,690 $ 10,982,764 $ 5,626,122 3,373,272 1,333,183 51,728 582,945 15.514 $ 12,328,009 $ 10,982,764 MIAMI SHORES VILLAGE, FLORIDA SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY SEPTEMBER 30, 1999 Function General government - finance and administrative Public safety - police Public services - public works Culture /recreation: Parks and recreation Library Country Club Total culture /recreation Total general fixed assets allocated to functions Improvements Other than Land Buildings Buildings Equipment Total $ 1,500 $ 232,720 $ - 1,387,049 71,264 427,545 94,907 $ 339,749 $ 668,876 36,819 1,401,386 2,825,254 1,794,118 1,984,418 4,277,345 62,350 1,021,933 467,644 550,228 2,102,155 2,500 350,269 45,265 235,828 633,862 580,917 580,163 392,468 266,969 1,820,517 645,767 1,952,365 905,377 1,053,025 4,556,534 $ 718,531 $ 3,999,679 $ 2,831,221 $ 4,778,578 $ 12,328,009 -51- MIAMI SHORES VILLAGE, FLORIDA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY FISCAL YEAR ENDED SEPTEMBER 30, 1999 General government: Finance and administrative Public safety - police Public services - public works Culture /recreation: Parks and recreation Library Country Club Total culture /recreation Total general fixed assets allocated to functions Balance Balance September 30, September 30, 1998 Additions Deletions 1999 $ 657,437 $ 11,309 $ - $ 668,746 2,374,289 450,965 - 2,825,254 4,002,146 275,329 - 4,277,475 2,033,372 68,783 - 2,102,155 582,337 51,525 - 633,862 1,333,183 487,334 - 1,820,517 3,948,892 607,642 - 4,556,534 $ 10,982,764 $ 1,345,245 $ - $ 12,328,009 -52- 1 1 j t ` i �. f t I I i MIANII SHORES VILLAGE, FLORIDA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION LAST TEN FISCAL YEARS Includes general fund only (excludes capital outlay). 5191! Recreation Fiscal General Public Public and Debt Year Government Lafety Works Culture Service Total 1990 $ 724,504 $ 2,487,160 $ 1,823,489 $ 1,147,600 $ 308,484 $ 6,491,237 1991 1,079,128 2,658,769 1,865,552 1,236,613 348,289 7,188,351 1992 766,732 2,802,608 2,319,763 1,259,271 329,034 7,477,408 1993 829,537 2,931,768 2,073,345 1,305,045 274,308 7,414,003 1994 882,339 2,858,883 2,180,109 1,517,445 475,103 7,913,879 1995 905,890 3,177,645 2,408,825 1,470,847 77,744 8,040,951 1996 858,675 3,637,242 2,517,619 1,946,134 77,744 9,037,414 1997 1,006,853 3,552,639 2,398,900 1,666,977 275,353 8,900,722 1998 1,003,637 3,024,810 2,350,017 1,667,392 34,875 8,080,731 1999 894,358 3,026,323 2,143,106 1,539,543 22,759 7,626,089 Includes general fund only (excludes capital outlay). 5191! N IANII SHORES VILLAGE, FLORIDA ASSESSED VALUE OF TAXABLE PROPERTIES LAST TEN FISCAL YEARS Source: Miami -Dade County Property Appraisers Office. -56- Real Personal Property Property Centrally Total Fiscal Assessed Assessed Assessed Assessed Year Value Value Value Value 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 14,150,253 498,901 319,513,226 1995 324,627,082 13,757,768 664,077 339,048,927 1996 328,044,932 13,238,273 681,979 341,965,184 1997 327,242,080 14,159,332 663,877 342,065,289 1998 352,803,811 14,849,506 862,792 368,516,109 1999 367,730,418 17,216,418 854,252 385,801,088 Source: Miami -Dade County Property Appraisers Office. -56- MIAMI SHORES VILLAGE, FLORIDA PROPERTY TAX LEVIES LAST TEN FISCAL YEARS Source: Miami -Dade County Property Appraiser. 961VA Total Fiscal County- Debt Tax Year Villaee Wide Service Fire MDCC LibraZy Libra School State Levies 1990 8.380 7.095 1.294 2.446 - 0.959 8.549 0.584 29.307 1991. 7.790 8.118 1.210 2.281 - 0.351 9.001 0.602 29.353 1992 7.990 8.118 1.150 2.281 0.750 0.351 9.104 0.600 30.344 1993 9.120 7.305 0.830 2.344 0.750 0.351 9.923 0.597 31.220 1994 8.660 7.500 0.808 3.150 0.750 0.351 9.503 0.597 31.319 1995 8.660 6.828 0.789 2.558 0.030 0.329 10.389 0.687 30.270 1996 8.493 6.828 0.829 2.518 - 0.329 10.389 0.687 30.073 1997 8.740 6.469 0.774 2.745 - 0.339 10.366 0.710 30.143 1998 8.740 6.023 0.837 2.869 - 0.334 10.260 0.644 29.707 1999 8.740 - 0.607 2.752 - - 9.744 0.641 22.484 Source: Miami -Dade County Property Appraiser. 961VA MIAMI SHORES VILLAGE, FLORIDA PRINCIPAL TAXPAYERS SEPTEMBER 30, 1999 -62- Assessed Percent Value of Total for Village -Wide Taxpayer Property Location 1998 Assessment Northern Trust Bank of Florida Shores Center, Biscayne Boulevard $ 2,900,000 0.8% Boris Moroz & Phil Glassman Shores Square 3,078,771 0.8 9325 Park Drive, Miami Shores Includes Burger King and Eckerds Tropical Chevrolet, Inc. 9000 Biscayne Boulevard 2,691,619 0.7 Henry Everett 9600 block of N.E. 2nd Avenue 1,362,220 0.4 Private residence George Bennett 9500 block of N.E. 2nd Avenue 1,360,301 0.4 Sheila McDonald 11 unit residential complex 1,316,055 0.3 Ben Pumo 9700 block of N.E. 2nd Avenue 1,124,827 0.3 Konover Properties, Inc. Shores Cinema 1,022,950 0.3 9800 block of N.E. 2nd Avenue NationsBank, N.A. 9595 N.E. 2nd Avenue 1,267,122 0.3 -62- MIAMI SHORES VILLAGE, FLORIDA TEN LARGEST PUBLIC AND PRIVATE EMPLOYERS LOCATED IN MIAMI -DADE COUNTY, FLORIDA SEPTEMBER 30, 1999 Ten Largest Public Employers Ten Largest Private Employers Metropolitan Dade County School 33,658 American Airlines 9,000 Miami -Dade County, Florida 28,000 University of Miami, Inc. 7,574 State of Florida 17,700 BellSouth, Inc. 5,000 United States Government 17,600 Federated Department Stores 4,500 Jackson Memorial Hospital Trust 7,216 Florida Power & Light (FPL) 3,400 City of Miami, Florida 3,189 Baptist Health Care Systems 3,275 Florida International University 2,775 Mt. Sinai Medical Center 3,228 VA Medical Center 2,610 Publix Supermarkets 3,000 City of Miami Beach, Florida 2,210 Winn -Dixie Supermarkets 2,500 City of Hialeah, Florida 1,405 Humana Health Care 2,000 Source: The Beacon Council - Research Department -63- r F r SUPPLEMENTARY AUDITOR'S REPORTS SECTION �z Rachlin Cohen & Holtz LLP Certified Public Accountants & Consultants Report of Independent Certified Public Accountants on Compliance and on Internal Control over Financial Reporting Based on an Audit of General Purpose Financial Statements Performed in Accordance with Government Auditint? Standards 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 and for the year ended September 30, 1999, and have issued our report thereon dated November 24, 1999. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether the Village's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Village's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. roll a One Southeast Third Avenue, Tenth Floor, Miami, Florida 33131 a Tel 305- 377 -4228 • Fax 305 -377 -8331 Offices in: Miami • Ft. Lauderdale • Boca Raton e West Palm Beach • Stuart www.rchcpa.com Member of Summit International Associates, Inc. with offices in principal cities throughout the world Member of the American Institute of Certified Public Accountants and member of the Florida Institute of Certified Public Accountants Honorable Mayor, Village Council and Village. Manager Miami Shores Village, Florida Page Two However, we noted other matters involving the internal control over financial reporting that we have reported to management in the accompanying schedule of findings. This report is intended solely for the information and use of the Mayor, Village Council, management, and applicable state agencies and is not intended to be used or should be used by anyone other than those specified parties. However, this report is a matter of public record and its distribution is not limited. Miami, Florida November 24, 1999 -65- Rachlin Cohen & Holtz LLP Certified Public Accountants & Consultants Management Letter in Accordance with the Rules of the Auditor General of the State of Florida 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 and for the year ended September 30, 1999, and have issued our report thereon dated November 24, 1999. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. In connection with our audit of the general purpose financial statements of the Village for the year ended September 30, 1999, 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(1)(e): 1. No inaccuracies, irregularities, shortages, defalcations or violations of laws, rules, regulations and contractual provisions were reported in the preceding annual financial audit. 2. The Village, during fiscal year 1999, was not in a state of financial emergency as defined by Florida Statute, Section 218.503 (1). The Village had no deficit fund balances for two consecutive years. Recommendations made in the preceding annual financial audit have been implemented, except as disclosed in the accompanying schedule of findings. 4. Recommendations to improve the Village's present financial management, accounting procedures and internal controls are accompanying this report in the schedule of findings. During the course of our audit, nothing came to our attention that caused us to believe_ t_ha_t_ 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. -66- One Southeast Third Avenue, Tenth Floor, Miami, Florida 33131 • Tel 305 -377 -4228 • Fax 305 -377 -8331 Offices in: Miami • Ft. Lauderdale • Boca Raton • West Palm Beach • Stuart www.rchcpa.com Member of Summit International Associates, Inc. with offices in principal cities throughout the world Member of the American Institute of Certified Public Accountants and member of the Florida Institute of Certified Public Accountants Honorable Mayor, Village Council and Village Manager Miami Shores Village, Florida Page Two d. Failed to record financial transactions, which could have a material effect on the Village's general purpose financial statements. e. Had other inaccuracies, irregularities, shortages and defalcations, and instances of fraud and fraud related matters. 6. The annual financial report for the year ended September 30, 1999 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. Miami Shores Village, Florida was incorporated by Laws of Florida 27675. This report is intended solely for the information and use of the Mayor, Village Council, management, and applicable state agencies and is not intended to be used or should be used by anyone other than those specified parties. However, this report is a matter of public record and its distribution is not limited. Miami, Florida November 24, 1999 -67- MIAMI SHORES VILLAGE, FLORIDA SCHEDULE OF FINDINGS FISCAL YEAR ENDED SEPTEMBER 30, 1999 PART I. CURRENT YEAR'S COMMENTS AND RECOMMENDATIONS 1. NEW PRONOUNCEMENT Condition Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements — and Management's Discussion and Analysis —for State and Local Governments, establishes new financial reporting requirements for state and local governments throughout the United States. When implemented, it will create new information and will restructure much of the information that governments have presented in the past. These new requirements were developed to make annual financial reports more comprehensive and easier to understand and use. The new reporting model will include government -wide financial statements as well as fund financial statements as well as a management's discussion and analysis section. Implementation will be required for fiscal year ending September 30, 2003. However, many of the reporting requirements need to be addressed several years before the required implementation date. Recommendation We recommend that the Village review the new requirements and plan accordingly. Management Response The Village will review the reporting requirements of GASB No. 34 and will begin planning to implement them in the new fiscal year. 2. FINANCIAL REPORTING SYSTEM Condition DurinDuring niir aiiraif iva nnf, /A flint f1k P V11lana A;A nnf Inn— o.1a.,,,�40 .i...,,...o..�,F:..« ir ,e.� - g vaaa —U-1.1 — aav ava. __t the ♦ 11—gr — not laa�l. —equate ddocu entaLion 1V1 certain calculations, policies and journal entries specifically as they related to compensated absences, receivables, fund balance and general fixed assets. This results in certain revenues, assets and liabilities to be erroneously reported. Matters noted during the audit were corrected and are properly reported. Recommendation We recommend the Village develop written procedures and policies regarding the documentation required for recording of journal entries and have the Chief Financial Officer review and approve of entries prior them being recorded. Management Response The Village has implemented written policies and has taken steps to ensure proper documentation is obtained prior to entries being recorded. IFIT-11 MIAMI SHORES VILLAGE, FLORIDA SCHEDULE OF FINDINGS (Continued) PART I. CURRENT YEAR'S COMMENTS AND RECOMMENDATIONS (Continued) 3. GRANT CENTRALIZATION Condition The Village made an attempt to centralize its grant procedures so that any grants applied for flowed through the Village's finance department and that the Village took a proactive approach to applying for any and all federal and state funding available. It was discovered that several of the departments are applying for monies and the finance department is completely uninformed of the awards until after funds are expended or received. This subjects the Village to various degrees of non - compliance in the areas of filing and reporting. Recommendation: We recommend that the Village establish a formal grant process that requires sign -off by all of the responsible officials, department heads with final authorization passing through the finance department. Management Response The Village will establish a formal procedure for grant application, record keeping and filing. 4. CODE VIOLATION REVENUES Condition At present, the code enforcement department fines residents for various violations. These fines are recorded in the Village's records on the accrual basis. Due to the nature of such items, they tend to remain unpaid or unresolved for a considerable amount of time, thereby presenting an unrealistic amount of revenue during the year. Recommendation We recommend that the Village begin recording the violations on the cash basis, but also retain a listing of potential revenues to be collected. Management Response The Village will begin recording code violations on the cash basis. Since the system automatically records a revenue and corresponding receivable, a journal entry will be made each month to reverse the transaction and record only the cash received as current period revenues. 56ta