2007MIAMI SHORES VILLAGE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2007
Prepared by
THE FINANCE DEPARTMENT
MIAMI SHORES VILLAGE, FLORIDA
TABLE OF CONTENTS
INTRODUCTORY SECTION
PAGE
Letter of Transmittal i -vii
List of Elected Officials viii
List of Appointed Officials ix
Organization Chart x
FINANCIAL SECTION
Report of Independent Certified Public Accountants 1 -2
Management's Discussion and Analysis 3 -12
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Assets 13
Statement of Activities 14
Fund Financial Statements:
Balance Sheet — Governmental Funds 15
Statement of Revenues, Expenditures and Changes in Fund Balances — Governmental Funds 16
Reconciliation of the Statements of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 17
Statement of Net Assets — Proprietary Funds 18
Statement of Revenues, Expenses and Changes in Net Assets — Proprietary Funds 19
Statement of Cash Flows — Proprietary Funds 20
Statement of Fiduciary Net Assets — Fiduciary Funds 21
Statement of Changes in Fiduciary Net Assets — Fiduciary Funds 22
Notes to Basic Financial Statements 23 -49
Required Supplementary Information:
Schedule of Employer Contributions 50
Budgetary Comparison Schedule:
General Fund 51 -52
Special Revenue Funds:
Excise Tax Fund 53
Local Option Gas Tax Fund 54
Note to Budgetary Comparison Schedules 55
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet — Nonmajor Governmental Funds 56 -57
Combining Statement of Revenues, Expenditures and Changes in Fund Balances —
Nonmajor Governmental Funds 58 -59
Budgetary Comparison Schedule:
Half Cent Surtax Fund 60
Debt Service Fund 61
MIAMI SHORES VILLAGE, FLORIDA
TABLE OF CONTENTS
(Continued)
FINANCIAL SECTION (Continued)
PAGE
Internal Service Funds:
Combining Statement of Net Assets 62
Combining Statement of Revenues, Expenses and Changes in Net Assets 63
Combining Statement of Cash Flows 64
Fiduciary Funds:
Combining Statement of Fiduciary Net Assets — Pension Trust Funds 65
Combining Statement of Changes in Fiduciary Net Assets — Pension Trust Funds 66
Statement of Changes in Assets and Liabilities — Agency Fund 67
STATISTICAL SECTION
Net Assets by Component — Last Four Fiscal Years
68
Changes in Net Assets — Last Four Fiscal Years
69 -70
Fund Balances for Governmental Funds — Last Four Fiscal Years
71
Changes in Fund Balances, Governmental Funds — Last Ten Fiscal Years
72
Assessed Value and Actual Value of Taxable Property — Last Ten Fiscal Years
73
Direct and Overlapping Property Tax Rates — Last Ten Fiscal Years
74
Principal Property Taxpayers — Current Year and Nine Years Ago
75
Property Tax Levies and Collections — Last Ten Fiscal Years
76
Ratios of Outstanding Debt by Type — Last Ten Fiscal Years
77
Direct and Overlapping Governmental Activities Debt
78
Legal Debt Margin— Last Ten Fiscal Years
79
Demographic and Economic Statistics — Last Ten Fiscal Years
80
Principal Employers Located in Miami -Dade County — Current and Ten Years Ago
81
Village Employees by Function/Program — Last Ten Fiscal Years
82
COMPLIANCE SECTION
Report of Independent Certified Public Accountants on Internal Control over Financial
Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards 83 -84
Management Letter in Accordance with the Rules of the Auditor General of the State of Florida 85 -86
Schedule of Findings and Responses 87
Summary Schedule of Prior Year Audit Findings 88
INTRODUCTORY SECTION
Thomas J Benton
Village Manager
The Mayor and Members of the Village Council
10050 Northeast Second Avenue
Miami Shores, Florida 33138 -2382
To the Mayor and Members of the Village Council:
Miami Shores Village
April 10, 2008
Office of the Village Manager
10050 N.E.2nd Avenue
Miami Shores, Florida 33138
Tel: (305) 795.2207
Fax: (305) 756.8972
www.Miami5horesVi I lage.com
Subject: FY 2006 -07
Financial Report (CAFR)
In compliance with Florida State Statute Chapter § 11.45, Chapter § 10.550 of the Rules of the Auditor General, and
Chapter 34(3) of the Miami Shores Village Code of Ordinances, we are pleased to submit for your review and
consideration the Miami Shores Village Comprehensive Annual Financial Report (CAFR) for the fiscal year ended
September 30, 2007. The report is presented in conformity with generally accepted auditing standards by our outside
auditors, Rachlin LLP, and Advisor.
This report consists of management's representations concerning the financial condition of Miami Shores Village ( "The
Village "). Consequently, management assumes full responsibility for the complete presentation, reliability, and accuracy
of all of the information presented in this report. To provide a reasonable basis for making these representations, the
Village's management has established a comprehensive internal control framework that is designed both to protect the
government's assets from loss, theft or misuse and to compile sufficient reliable information for the preparation of the
Village's financial statements in conformance with accounting principles generally accepted in the United States. Because
the cost of internal controls should not outweigh their benefits, the Village's comprehensive framework of internal
controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free
from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report
is complete and reliable in all material respects.
The accompanying report consists of three parts:
• The Introductory Section, including this letter of transmittal, provides general information on the Village's
structure and personnel as well as other information that will assist readers to better understand the organization's
financial condition.
The Financial Section contains the basic financial statements and required supplementary information including
Management's Discussion and Analysis (MD &A), the report of the independent certified public accountants, and
other supplemental information useful to statement readers. The MD &A is a narrative required to accompany the
basic financial statements, providing an objective and `easy -to -read' analysis of the Village's financial activities.
These activities are based on currently known facts, decisions, or conditions available to management at the time
of preparation. This letter of transmittal is designed to complement the MD &A for a graphical presentation of the
report.
FY2006-07Financial Report April 10, 2008
• The Statistical Section provides tables and graphs of unaudited data depicting the financial history of the Village
over the course of the past 10 years including, but not limited to demographics, key taxpayers, revenue and
expense trends and more.
Independent Audit
Rachlin LLP, a firm of licensed certified public accountants, has audited the Village's financial statements for the fiscal
year ended September 30, 2007. Their audit was in accordance with auditing standards generally accepted in the United
States, Government Auditing Standards issued by the Comptroller General of the United States and the Rules of the
Auditor General, State of Florida. The goal of the independent auditor was to provide reasonable assurance that the
financial statements of the Village for the fiscal year ended September 30, 2007 are free of material misstatements. The
independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements; assessing the accounting principles used and significant estimates made by management; and evaluating the
overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a
reasonable basis for rendering an unqualified opinion that the financial statements of Miami Shores Village for the fiscal
year ended September 30, 2007 are fairly presented in conformity with generally accepted accounting principles (GAAP).
The independent auditor's report is presented as the first component of the financial section of this report.
Profile of the Government
Miami Shores Village, a Florida municipal corporation incorporated in 1932, is located in Northeast Miami -Dade County.
The Village has a year -round population estimated at 10,400 residents living within the 2.3 square mile jurisdiction. The
Village begins at Biscayne Bay on the east and goes west to Northwest Second Avenue. The north and south boundaries
are 115"' Street and 91s' Street respectively. The Village is a residential -based community with two (2) commercial
districts located on Second Avenue and Biscayne Boulevard.
Government structure and services provided
Operating under a Council- Manager form of government, the Council consists of five members elected at large. The
Mayor is chosen by each of the newly formed councils. Historically, the individual receiving the highest number of votes
during the election is chosen as the Mayor and the Vice -mayor has received the second highest. Both the mayor and vice -
mayor serve four (4) year terms, two as mayor /vice -mayor and two as regular council members. The Village Council is
responsible for the selection and appointment of the Village Manager, Village Clerk and Village Attorney. The Village
Manager is responsible for engaging all department heads and their subordinates.
Miami Shores Village provides a full range of municipal services including recreation and culture, public safety through
the police, public works and general administrative services for its residents and businesses. For the fiscal year ended
September 30, 2007, no legally separate authorities or agencies operated under the auspices of the Village; therefore, no
additional financial information will be incorporated into these statements.
BudQetary Process and Control
Florida State Statute §200.065 requires that all municipal governments prepare, approve, adopt and execute an annual
budget for such funds as may be required by law or by sound fiscal practices. In compliance with this Statute as well as
other state regulatory items, the Village adopts an annual operating budget into which funds are either formally
appropriated by resolution or non - appropriated in nature, depending upon the fund (i.e. — general, special revenue, debt
service, enterprise, internal service or trust funds). However, in practice, all funds by those identified as fiduciary in
nature, receive annual budgets and corresponding appropriations.
The annual budget serves as a foundation for the financial planning, guidance and control of the Village. Funds which
require legal appropriations cannot exceed their original and amended budgets. All departments are required to annually
W
FY2006-0 7 Financial Report April 10, 2008
submit requests for appropriations to the Village Manager by June I't of each year. The Village Manager then uses those
requests as the base from which the annual operating and capital budgets are developed. The budget is presented to the
Village Council following the release of the tentatively assessed property values in early July of each year. Workshops are
held in July during which council members are free to address department staff with general and specific issues proposed
in the budget. Following the summer workshops, the Council adopts a resolution which sets the tentative millage rates
which are subsequently sent to the County using Florida Form DR420 for inclusion on the Proposed Tax Bills. Two
public hearings are held in September of each year during which members of the public are offered the opportunity to
provide insight and solicit information regarding the operations of their municipality. After the second public hearing,
resolutions present the final operating and debt service millage rates along with corresponding budgets for the fiscal year
and are subsequently adopted by the Village Council.
The annual budget is adopted at the fund and department level. Line -item transfers are permitted with the approval of the
Finance Director and Village Manager; however, changes to the bottom line of department or fund totals require council
approval and are executed by resolution. Budget to actual comparisons are provided in this report for each individual
governmental fund for which an appropriated annual budget has been adopted. For the general fund, this comparison is
presented on Page 51 -52 as part of the basic financial statement for the governmental funds. For funds, other than the
general fund, with appropriated annual budgets, this comparison is presented in the governmental fund subsection of this
report, which begins on page 53. Also included in the governmental fund subsection are project - length budget to actual
comparisons for each governmental fund for which a project - length budget has been adopted (i.e. — the capital projects
fund).
Cash Management
To maximize returns on liquid cash, the Finance Department pursues aggressive cash management and investment
programs within the constraints and parameters imposed by Florida Statutes and local policies. Working capital is
maintained in investment accounts including, but not limited to, overnight repurchase agreements, money market
accounts, short-term secured financial instruments such as certificate of deposits, commercial paper and other short- and
mid -term investments. Interest earnings are allocated based on asset values reported in each fund at the close of each
month. For those funds which are used as clearing funds (i.e., Fund 120, Excise Tax Fund), no interest allocations are
reported. Additionally, interest earned on dedicated or segregated funds, such as capital loan proceeds and restricted cash
funds, are invested at par.
A summary and comparison of treasury activity for the last three fiscal years, not including cash with fiscal agents are as
follows:
Average Portfolio balance
Average Yield
Interest earned on Investments
Managed by Finance Department
2007
2006
2005
$ 7,042,132
$ 5,185050
$4,886,322
5.25 %
5.10%
2.01%
$ 283,393
$ 201,466
$ 198,196
Um
FY2006-07Financial Report April 10, 2008
The following chart summarizes the value of the Village's investments as of September 30, 2007 excluding those
investments related to the General Employees and Police Officers' Retirement Funds:
Cash Equivalent and Investment Types
Comm Pap Repos
0%
20%
48%
CDs
0%
5er
The information presented in the financial statements is perhaps best understood when it is considered from a broader
perspective of the specific environment within which the Village operates.
PENSION and POST - EMPLOYMENT BENEFIT COSTS
The Village sponsors two, independent, defined benefit pension plans: the General Employees' Retirement Plan and
the Police Officers' Retirement Plan. Additionally, a voluntary deferred compensation plan is made available to those
employees who wish to augment their future retirement benefits with no financial obligation by the Village. Complying
with the Village's Code, along with various State Statutes, an independent actuary is engaged each year to calculate the
annual contributions required by the Village to ensure that each benefit plan is able to fully meet its current future
obligations for its retirees on a timely basis. As a matter of policy, the Village maintains funded plans and funds each
year's annual required contribution to each respective plan as part of the annual budget process.
Additional information related to the Village's two pension programs may be found in Note 10 (a -d) in the Notes to the
Financial Statements.
Long -term Debt Management
The Village continues to obtain, in an efficient and innovative manner, long -term financing for the construction or
acquisition of long -term assets and equipment. Management's objective is to adequately plan and meet the Village's
comprehensive capital plan and related demands which are critical to the continued enhancement of our infrastructure. At
the same time, however, we do not want to place a significant burden on the taxpayers through general obligation debt
through ad valorem taxes.
Following the voters direction, the Village has issued and sold two independent General Obligation Bonds: Series 1999
and Series 2004 funding the capital investment for the Village's $3,500,000 - Aquatics Facility and $5,000,000 - Doctors
Charter School of Miami Shores respectively. The ad valorem levies for the two general obligation bonds were 0.3780
and 0.4779 for the Aquatics Facility and Charter School respectively.
iv
FY2006-0 7 Financial Report Apr-7110, 2008
The Following chart indicates the principal amortization of the Village's general obligation debt for the next five fiscal
years:
General Obligation Debt
Principal Amortization
For the Five -Year Increment Following FY 2008 -09
Fiscal
Principal
Year
Amortization
2010
$ 190,000
2011
195,000
2012
205,000
2013
215,000
2014
225,000
Total
ENTERPRISE OPERATIONS
The Village operates two individual enterprise operations: Sanitation and Stormwater utilities. Each area operates
separate from the other functions of the Village and is fully supported by fees charged to users for the service provided.
The following is a brief introduction to these two divisions:
Sanitation
Sanitation is an operating division of the Public Works Department. Comprised of 23 full time employees, the department
provides comprehensive solid waste collections and recycling services to the Village's residents and commercial
operations. Servicing more than 3,600 customers, the Village provides regular trash services, special pickups, recycling
programs and other sanitation - related services. The Village also provides recycling services to the Village of Biscayne
Park for a negotiated fee.
Stormwater Utilities
The Public Works Department is also responsible for the day -to -day operations of the Village's Stormwater utility.
Stormwater utilities as defined by Section 20 -102 of the Village's Code of Ordinances provides for a comprehensive
drainage control program throughout the Village. Through the Public Works Department, the Village is responsible for
the maintenance of the system as well as managing various contracts engaged to repair, rehabilitate, replace and expand
the system. Charges for this division are based on a fee determined by identifying the impervious area of each residential
and commercially- developed property in the Village. The calculation determines each property's Equivalent Residential
Units [ERUs] equaling 2,466 square feet divided by the total impervious area. Impervious means that area of any given
property which does not permit rain or run off to naturally.filter back through the ground. The annual fee of $39.00
funds all costs associated with the function including, but not limited to personnel, operating, administrative, debt service
and capital investment costs. This function reports through an Enterprise Fund and uses the full accrual method of
accounting including amortization and depreciation charges.
FY2006-0 7 Financial Report April 10, 2008
INTERNAL SERVICE OPERATIONS
The Village provides for two internal service funds: Fleet Maintenance and Risk Management. Internal service funds
are used to capture the true costs for service which are for the sole benefit of Village. The following are brief
introductions for both service areas.
Fleet Maintenance
Fleet Maintenance, a division of the Village's Public Works Department, is fully responsible for the day -to -day
maintenance of all equipment and vehicles operated by the organization. Maintenance includes the costs for routine
repairs, preventive services, general maintenance, fuel, personnel costs and other operational functions. Additionally, the
acquisition of all vehicles and equipment, not specifically identified as an asset of an enterprise operation are recorded in
this division. Through annual depreciation charges, replacement funds accumulate as a reserve for future equipment
requirements. As an internal service fund, operational revenues originate as charges recorded in each `user' division,
transferring the corresponding cash to this self - balancing fund including non -cash charges such as depreciation,
amortization and transfers to reserves.
Risk Mana ,-ement
Risk Management is a function of the Finance Department. The Village is insured by the Florida League of Cities since
October 1, 2005. The Village converted to first dollar coverage from the self - insurance program due to the significant
increases in reinsurance and reserve costs. Claims are filed with the League and various deductibles are in place
depending upon the type of coverage associated with the loss.
FACTORS AFFECTING FINANCIAL CONDITIONS
The information presented in the Village's financial statements primarily focus on the financial position at the end of each
fiscal year as measured by existing resources and claims against those resources. To better understand the Village's
financial condition, readers should focus on both existing and future resources and potential claims (or liabilities) against
those resources. This broader concept is used to assess the financial condition of Miami Shores, reflecting the current
financial position as well as the prospects that today's financial condition will improve or deteriorate. To achieve this
objective, the Village uses a wide -range of information including local economic conditions and outlook; long -term debt
management; capital construction and investments; cash management / investments; and, of course, risk controls.
ECONOMIC CONDITION AND OUTLOOK
As seen throughout the country, property values have increased exponentially. The same may be said about many of the
properties located in Miami Shores. Over the past five years, we have seen double -digit increases in property values;
however, market conditions are showing a slowdown in growth. Additionally, insurance costs have escalated to levels
that make it difficult for the average homeowner. Despite these increases continued, property improvements and
investments in homes across the Village are borne out by the number of building permits issued during the year.
On January 29, 2008, the Florida electorate approved an amendment to the Florida Constitution relative to property
taxation. This amendment (referred to as Amendment 1) was placed on the ballot by the Florida legislature at a special
session held in October 2007. With respect to homestead property, Amendment 1 increases the current $25,000
homestead exemption by another $25,000 (for property values between $50,000 - $75,000). With respect to non-
homesteaded property, Amendment 1 limits (caps) the annual increase in assessed value for businesses, industrial
property, rental property, second homes, etc to ten percent (10 %). The increase in the exemption does not affect the
school district portion of the tax bill. The Amendment also provides a $25,000 exemption for tangible personal property.
Amendment 1 becomes effective on October 1, 2008 with the exception of the ten percent (10 %) assessment cap on non -
homestead property which becomes effective on January 1, 2009.
Vi
FY2006-0 7 Financial Report April 10, 2008
Based on information received from Miami -Dade County Property Appraiser's Office, the estimated annual loss of
property tax revenues from the additional homestead exemption and the $25,000 exemption for tangible personal property
is approximately $548,527. At present, there is no accurate way to determine the impact of the portability and assessment
cap on non - homestead property provisions in terms of potential loss of property tax revenues. Estimates for the Village
show an additional loss of property tax revenues of $167,696, or a total of approximately $716,223.
The impact to the Village from these revenue losses will have adverse effects on operations. Basic services will remain in
place such as police and sanitation; however, as revenue streams decrease, the Village will need to reduce or eliminate
services and programs currently in place. As it remains uncertain, staff will continue to monitor the events and will
respond accordingly.
AWARDS and ACKNOWLEDGEMENTS
The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff
of the Finance Department. Credit must also be given to Mayor Herta Holly and the members of the Village Council for
their unfailing support for maintaining the highest standards of professionalism in the financial and operational
management of Miami Shores Village. And, finally, we would like to express our sincere thanks and appreciation to the
management and staff of our auditing firm, Rachlin, LLP. Their dedication to ensuring the accuracy of the data presented
to you in this report was greatly evident during the past several weeks.
Respectfully submitted,
MIAMI SHORES VILLAGE
1,4
THOMAS J. BENTON
Chief Executive Officer
TJB:MAM:
Attachments
THIS PAGE INTENTIONALL Y LEFT BLANK
MIAMI SHORES VILLAGE, FLORIDA
Councilman
Hunt Davis
LIST OF ELECTED OFFICIALS
SEPTEMBER 30, 2007
Mayor Herta Holly
Vice Mayor Stephen Loffredo
Councilman
Prospero Herrera
-viii-
Councilman
JC Rodriguez
MIAMI SHORES VILLAGE, FLORIDA
LIST OF APPOINTED OFFICIALS
SEPTEMBER 30, 2007
APPOINTED OFFICIALS
VillageManager .................................................... ...............................
VillageClerk ......................................................... ...............................
VillageAttorney .................................................... ...............................
DEPARTMENT HEADS
...........Thomas J. Benton
Barbara A. Estep, MMC
..............Richard Sarafan
Building Director ...................................................................... ............................... Claudio Grande
Acting Finance Director .................................................... ............................... Holly Hugdahl, CPA
LibraryDirector ........................................................................ ............................... Elizabeth Esper
Planning & Zoning Director .......................... ............................... ..........................David Dacquisto
Chiefof Police .............................................................................. ............................... Kevin Lystad
Public Works Director ..................................................................... ............................... Scott Davis
Recreation Director ................................................. ............................... ..........................Jerry Estep
VILLAGE AUDITORS
Rachlin LLP
Accountants - Advisors
-ix-
MIAMI SHORES VILLAGE, FLORIDA
ORGANIZATION CHART
SEPTEMBER 30, 2007
MAYOR & COUNCIL
MAYOR
HERTA HOLLY
VICE MAYOR -
STEPHEN LOFFREDO
COUNCILMAN -
HUNT DAVIS
COUNCILMAN -
PROSPERO HERRERA
COUNCILMAN -
J.C. RODRIGUEZ
VILLAGE CLERK VILLAGE ATTORNEY
BARBARA A. EST RICHARD SARAFAN, ESQ.
VILLAGE MANAGER
THOMAS J. BENTON
PUBLIC WORKS ACTING FINANCE BUILDING CHIEF OF
DIRECTOR DIRECTOR DIRECTOR POLICE
SCOTT DAMS HOLLY HUGDAHL, CPA CLAUDIO GRANDE KEVIN LYSTAD
RECREATION PLANNING & ZONING DIRECTOR OF
DIRECTOR DIRECTOR LIBRARY SERVICES
JERRY ESTEP DAVID DACQUISTO ELIZABETH ESPER
-x-
FINANCIAL SECTION
REPORT OF INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS
Rachlin
accountonts•advisops
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Honorable Mayor, Village Council and Village Manager
Miami Shores Village, Florida
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of Miami Shores Village,
Florida (the Village), as of and for the year ended September 30, 2007, which collectively comprise the
Village's basic financial statements as listed in the table of contents. These financial statements are the
responsibility of the Village's management. Our responsibility is to express opinions on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States and
the standards applicable to financial audits contained in Government Audit 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 consideration of internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the Village's internal control over financial reporting. Accordingly, we express no
such opinion. 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 opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major fund,
and the aggregate remaining fund information of the Village, as of September 30, 2007, and the
respective changes in financial position and cash flows, where applicable, thereof for the year then ended
in conformity with accounting principles generally accepted in the United States.
In accordance with Government Auditing Standards, we have also issued our report dated April 10, 2008
on our consideration of the Village's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be read in conjunction with this report in
considering the results of our audit.
-1-
M E N
Rachlin LLP ■ One Southeast Third Avenue ■ Tenth Floor ■ Miami, Florida 33131 ■ Phone 305.377.4228 ■ Fax 305.377.8331 ■ www.rachlin.com
An Independent Member of Baker Tilly International
M I A M I ■ F 0 R T L A U D E R D A L E ■ W E S T P A L M B E A C H
Honorable Mayor, Village Council and Village Manager
Miami Shores Village, Florida
Page Two
Management's Discussion and Analysis and the required supplementary information on pages 3 to 12 and
50 to 55, respectively are not a required part of the basic financial statements, but are supplementary
information required by accounting principles generally accepted in the United States. 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 express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Village's basic financial statements. The introductory section, combining and individual
fund financial statements and schedules and statistical section are presented for purposes of additional
analysis and are not a required part of the basic financial statements. The accompanying schedule of
expenditures of federal awards in presented for purposes of additional analysis as required by the United
States Office of Management and Budget Circular A -133, Audits of States, Local Governments and Non -
Profit Organizations, and is also not a required part of the basic financial statements of the Village. The
combining and individual fund financial statements and schedules and the schedule of expenditures of
federal awards have been subjected to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial
statements taken as a whole. The introductory and statistical sections have not been subjected to the
auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no
opinion thereon.
Miami, Florida
April 10, 2008
-2-
Rachlin
accountants • advisors
MANAGEMENT'S DISCUSSION AND ANALYSIS
(MD &A)
Management's Discussion and Analysis
As management of Miami Shores Village, we offer readers of the Village's financial statements this narrative
overview and analysis of the financial activities of Miami Shores Village for the fiscal year ended September 30,
2007. We encourage readers to consider the information presented here in conjunction with additional information
that we have furnished in our letter of transmittal, which can be found on pages i to vii of this report. All amounts,
unless otherwise indicated, are expressed in thousands of dollars.
Financial Highlights
The assets of Miami Shores Village exceeded liabilities at the close of the most recent fiscal year by $17,245,246
(net assets). This amount includes funds identified and reserved for emergencies and capital construction
proj ects.
✓ As of the close of the current fiscal year, Miami Shores Village's governmental funds reported combined
ending fund balances of $8,486,978, an increase of $2,086,133.
✓ At the end of the current fiscal year, unreserved fund balance for the general fund was $4,022,283 or 38.1%
of total general fund expenditures.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the basic financial statements of Miami Shores
Village. The Village's basic financial statements comprise three components: 1) government -wide financial
statements; 2) individual fund financial statements; and, 3) notes to the financial statements. This report also
contains other supplementary information in addition to the basic financial statements themselves.
Government -wide financial statements. The government -wide financial statements are designed to provide
readers with a broad overview of the financial activity of Miami Shores Village, in a manner similar to a private -
sector business.
The Statement of Net Assets presents information on all of the assets and liabilities of Miami Shores Village, with
the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a
useful indicator of whether the financial position of the Village is improving or deteriorating.
The Statement of Activities presents information showing how the government's net assets changed during the most
recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change
occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement
for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but
unused vacation leave).
Both of the government -wide financial statements distinguish functions of Miami Shores Village that are principally
supported by taxes and intergovernmental revenues (governmental activities) as well as other functions that are
intended to recover all or a significant portion of their costs through user fees and charges (business -type activities).
The governmental activities of Miami Shores Village include general government, public safety, public works,
building, planning, zoning, code enforcement, parks and recreation. The business -type activities of the Village
include Sanitation and Storm water operations.
The government -wide financial statements may be found on pages 13 -14 of this report.
Fund financial statements. A find is a grouping of related accounts that is used to maintain control over resources
that have been segregated for specific activities or objectives. Miami Shores Village, like other local governments,
use fund accounting to ensure and demonstrate compliance with finance- related legal requirements. All of the funds
of Miami Shores Village can be divided into three categories: governmental funds, proprietary or fiduciary funds.
-3-
Governmental funds. Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government -wide financial statements. However, unlike the government -wide
financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information
may be useful in evaluating a government's near -term cash flow and financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government -wide financial statements. By doing so, readers may better understand
the long -term impact of the government's near -term financing decisions and the impact on short term cash flow
requirements to meet basic on -going operations. Both the governmental fund balance sheet and the governmental
fund statement of revenues, expenditures and changes in fund balance provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
Miami Shores Village maintains sixteen (16) individual governmental funds. Information is presented separately in
the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes
in fund balance for the general fund and the five major funds. Data from the other ten governmental funds are
combined into a single, aggregated presentation. Individual fund data for each of these non -major governmental
funds is provided in the form of combining statements elsewhere in this report.
The basic governmental fund financial statement may be found on pages 15 to 17 of this report.
Proprietary funds. Miami Shores Village maintains two proprietary or enterprise funds. Enterprise Funds are used
to report the same functions presented as business -type activities in the government -wide financial statement.
Miami Shores uses enterprise funds to account for its Sanitation and Storm water Operations. Internal service funds
provide for an accounting method whereby the organization can accumulate and allocate costs internally among the
other user divisions. The Village uses internal service funds to account for its risk management costs as well as its'
fleet operation. Because both of these services predominantly benefit governmental rather than business -type
functions, they have been included within governmental activities in the government -wide financial statements.
Proprietary funds provide the same type of information as the government -wide financial statements, only in more
detail. The proprietary fund financial statements provide separate information for the Village's Sanitation and
Storm water operations, both of which are considered to be major funds of the Village. Additionally, the Village
segregates the financial reporting of both internal service funds to better distinguish the costs of each function.
The basic proprietary fund financial statements may be found on pages 18 to 20 of this report.
Fiduciary .funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the govermment -wide financial statements because the resources of
those funds are not available to support the Village's own programs. The accounting used for fiduciary funds is
much like that used for proprietary funds.
The basic fiduciary fund financial statements may be found on pages 21 to 22 of this report.
Notes to the financial statements. The notes provide additional information that is essential to fully understand the
data provided in the government -wide and fund financial statements. The notes to the financial statements may be
found on pages 23 to 49 of this report.
Other information. In addition to the basic financial statements and accompanying notes, this report also presents
certain required supplementary information concerning the progress in funding its obligations to provide pension
benefits to the employees of Miami Shores Village.
Required supplementary information may be found on pages 50 to 55 of this report
_E
The combining statements referred to earlier in connection with non -major governmental funds and internal service
funds are presented immediately following the required supplementary information on pensions. Combining and
individual fund statements and schedules may be found on pages 56 to 67 of this report.
Government -wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the
case of Miami Shores Village, assets exceeded liabilities by $17,245,246 at the close of the most recent reporting
year.
By far, the largest component of Miami Shores net assets 54.5% reflects its investments in capital assets (e.g., land,
buildings, machinery, and equipment); less any related debt used to acquire those assets that is still outstanding.
Miami Shores uses these capital assets to provide services to citizens consequently these assets are not available for
future spending. Although Miami Shores' investment in its capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
Table 1
Miami Shores Village's Net Assets
Governmental Business -type
activities activities TOTAL
Current and other assets $ 9,735,173 $ 770,301 $ 10,505,474
Capital assets 19,935,979 1,657,202 21,593,181
Total assets $ 29,671,152 $ 2,427,503 $ 32,098,655
Long -term liabilities outstanding $ 11,054,458 $ 52,922 $ 11,107,380
Other liabilities 1,371,448 978,429 2,349,877
Total liabilities $ 12,425,906 $ 1,031,351 $ 13,457,257
Invested in capital assets, net of
Related debt $ 9,393,138 $ 770,301 $ 10,163,439
Restricted 3,345,154 - 3,345,154
Unrestricted 4,506,954 625,851 5,132,805
Total net assets 17.245.246 S 1,396,152 S 18,641,398
At the end of the current fiscal year, the Miami Shores Village is able to report positive balances in all three
categories of net assets, both for the government as a whole, as well as for its separate governmental and business -
type activities.
Continued on next page
5-
Governmental activities. Financial activities for the fiscal year are reported below. Key indicators, including
revenues and expenditures by category are presented herein for review:
Table 2
Changes in Miami Shores Village's Net Assets
Cateaory
Revenues:
Program revenues:
Charges for services
Operating grants &
Contributions
Capital grants and
Contributions
General Revenues:
Property taxes
Other taxes
Grants and contributions not
Restricted to specific programs
Other
Total Revenues
Expenses:
General government
Public safety
Highways / Streets
Sanitation / Stormwater
Economic development
Culture & recreation
Interest on Long -term Debt
Total Expenses
Increase in net assets
Before transfers
Transfers
Increase in Net Assets
Net assets on October 1, 2006
Net Assets: September 30, 2007
Governmental
activities
$ 2,040,962
146,413
106.503
$ 7,373,484
2,923,499
1,933,051
S 14 „5,912
$ 2,941,291
4,451,336
2,357,012
2,190,507
504.411
512,444,557
2,079,355
210,000
$ 2,289,355
14,955,891
Business -
type
activities
$ 2,703,818
22,377
� 2,726,195
2,479,713
246,482
( 210,000)
$ 36,482
1,359,670
TOTAL
$ 4,744,780
146,413
106,503
$ 7,373,484
2,923,499
1,955,428
17,250,107
$ 2,941,291
4,451,336
2,357,012
2,479,713
2,190,507
504,411
S 14,924.270
2,325,837
p G,J GJ, 0.3 /
16,315,561
For FY 2007, property tax revenues increased some 17.8% or $1,113,092 more than the $6,260,392 recorded in the
previous fiscal year. This increase results from an overall increase in assessed values as well as recovery of
delinquent tax settlements from the previous two fiscal years.
Continued on next page
-6-
600
500
400
300
200
100
Figure A -1
Expenses and Program Revenues — Governmental Activities
For the Fiscal Year Ended September 30, 2007
Revenues Expenses
® General government ■ Public safety O Public works
OCulture /recreation ■Interest on long -term debt
Figure A -2
Revenues by Source — Governmental Activities
For the Fiscal Year Ended September 30, 2007
-7-
Business -type activities. Business -type activities increased the Village's net assets by $36,482, generated by
controlling operating costs. Key elements related to this increase include the following:
✓ Management fee transferred into General from Enterprise Funds was reduced.
✓ Productivity improvements demonstrated by activity employees.
Financial Analysis of the Government's Funds
As noted earlier, Miami Shores Village uses fund accounting to ensure and demonstrate compliance with finance -
related legal requirements.
Governmental funds. The focus of the governmental funds for Miami Shores Village is to provide information on
near -term inflows, outflows and balances of spendable resources. Such information is useful in assessing the
Village's financing requirements. In particular, the unreserved fund balance may serve as a useful indicator of the
governments net resources available for spending at the end of a fiscal year.
Figure A -3
Expenses and Program Revenues — Business -type Activities
For the Fiscal Year ended September 30, 2007
3000000
1000000' .
Sanitation Stormwater
IM Program Revenue ® Expenses
As of the end of the current fiscal year, the governmental funds for Miami Shores Village reported combined ending
fund balances of $8,486,978, a $2,086,113 increase over FY 2006. Of this amount, $5,444,253 reflects unreserved
fund balance, which is available for spending at the government's discretion. The remainder of the fund balance is
reserved or designated to indicate that it is not available for new spending as those dollars have already been
committed to: 1) liquidate contacts or encumbered fiscal obligations (outstanding purchase orders) valued at
$218,712; 2) reserved $89,764 for prepaid assets and 3) the 2`1 Avenue Project and fund the construction of the
Fleet Maintenance Facility $2,484,234..
The general fund is the primary operating fund of the Village. At the end of the current fiscal year, the unreserved
fund balance for the general fund was $4,022,283 as compared with $2,050,103 in the prior year. Reserved fund
balance decreased slightly from $199,435 in the prior year to $189,953 for the current fiscal year, this decrease was
mainly due to encumbrances relating to ongoing projects which had not been completed as of last year -end.
-8-
The value of the Village's general fund balance increased by $978,464 during the fiscal year. Key factors associated
with this increase are as follows:
• Increased property values and corresponding tax revenues (exclusive of delinquent accounts)
• A larger than expected level of attrition in general fund employees resulting in salary savings
• Transferring risk exposures from self insurance to first dollar coverage (internal service charges)
Proprietary funds. The Village's proprietary funds provide the same type of information found in the government -
wide financial statements, but in more detail.
• Unrestricted net assets of the Sanitation Fund at the end of the year totaled $403,097, a $41,340 increase in
net asset values.
• Unrestricted net assets of the Storm water Fund at the end of the year totaled $222,754, a $44,049 increase
in net asset values.
General Fund Budgetary Highlights
The Village adopts annual budgets by fund, department and line item in compliance with Florida State Statute
Section 200.065 (commonly referred to as the Truth -in Millage Legislation). The law requires municipal
organizations to prepare and adopt annual operating budgets for the General, Special Revenue and Debt Service
Funds following uniform time frames related to property tax levies. The balanced budgets may be revised
throughout the year. The Village's code allows for department level budget transfers without council approval;
however, department and fund total changes require Council- approved budget amendments adopted by resolution.
The Village's policy is to adopt the budget following the second public hearing of each fiscal year, held in
September for an October 1St year. The Village has also adopted a policy which provides for the reappropriation of
reserved fund balance for encumbrances and prepaid assets. This amendment is always adopted as the first budget
amendment of each fiscal year and is normally presented at the first meeting in November of each fiscal year.
Additional budget amendments may be presented to council at any time during the fiscal year.
Over the course of the year, the Village amended the General Fund budget two times. The budget amendments fall
into two categories: (1) Amendments are approved for rollovers related to prior year encumbrances; and (2)
supplemental appropriations to provide appropriations for various other needs which have arisen since the adoption
of the budget. Even with these adjustments, actual disbursements were $1,590,586 below final budgeted amounts.
The $844,543 budget saving in General government was the most significant contributor to this variance. There was
a significant decrease in general government costs and various departmental savings due to staff vacancies and
turnover.
The fiscal year 2007 final amended budget was $13,157,059, an increase of 7.8 % over the original General Fund
budget of $12,203,519. Correspondingly, the Consumer Price Index (or inflation index) from the U.S. Bureau of
Labor Statistic — All Urban Consumers South Urban are for the past year was 3.0 %. Beyond base revenues of
$9,771,650 and $2,431,869 in operating transfers from Excise Tax, Sanitation Fund and Stormwater Fund, the final
Adopted Budget is balanced by not using any fund balance. The original General Fund budget consists of
$11,825,624 base expenditures and $377,895 in operating transfers to the other funds.
Differences between the original budget and the final amended budget increased appropriations by $953,540 and can
be briefly summarized as follows:
• $112,983 in encumbrances carried over from FY2005 -06
• $81,849 to the Unclassified Department to pay for an unusually large number of employee departments,
specifically, distribution of accumulated leave accounts for unused vacation and sick leave
• $380,328 for the reconstruction of the Suntrust loan transfer to the Debt Service Fund.
• $378,380 for an increase relating to the correction of understated revenue estimated.
-9-
Capital Asset and Debt Administration
Capital Assets. Miami Shores Village's investment in capital assets for its governmental and business -type
activities as of September 30, 2007 amounts to $20,706,950 (net of accumulated depreciation). This investment in
capital assets includes Village -owned buildings, equipment and other infrastructure (streets, sidewalks, easements,
right-of-ways). The value net value of capital investments includes the cost of the Doctors' Charter School of
Miami Shores.
Major capital asset events during the current year included the following:
✓ Continued enhancement of the Village's information networks including computer enhancements and
related equipment
✓ Sidewalk replacement and street repaving Village -wide
✓ Village -wide landscape enhancements
Table 3
Miami Shores Village's Capital Assets
(Net of depreciation)
2007
Business -
Government type
Classification Activities activities TOTAL
Land $ 2,358,437 $ - $ 2,358,437
Building 7,435,222 - 7,435,222
Land Improvement 2,065,932 - 2,065,932
Furniture Fixtures/ Equipment 887,313 770,301 1,657,614
Infrastructure 7,189,745 - 7,189,745
$ 19,936,649 $ 770,301 $ 20,706,950
Additional information on Miami Shores' capital assets may be found in Note 6 on Page 35 of this report.
Long -term debt. At the end of the fiscal year, Miami Shores Village had total bonded debt outstanding of
$10,622,217. Of this amount, $2,710,000 represents the balance outstanding on the General Obligation Bond, Series
1999 related to the Miami Shores Aquatics Facility; $4,705,000 represents the outstanding balance due on the
General Obligation Bond Series 2004 to construct the Doctors' Charter School of Miami Shores and $3,215,811
represents the principal balance outstanding for the $3.5 million term note.
Table 4
Miami Shores Village's Outstanding Debt
Business -type
Governmental activities activities TOTAL
Classification 2007 2006 2007 2006 2007 2006
General obligation bond $ 7,406,406 $ 7,576,075 $ $ $ 7,406,406 $ 7,576,075
Other debt 3,215,811 3,444,819 3,215,811 3,444,819
TOTAL $ 10,622,217 $ 11,020,894 $ - $ - $ 10,622,217 $ 11,020,894
Additional information on the Village's long -term debt may be found in Note 7 on Pages 36 to 38 of this report.
-10-
Economic Factors and Next Year's Budgets and Rates
Miami Shores Village is a residential, single - family community. As such, standard economic indicators used to
determine the overall health of a community are slightly different for Miami Shores. Since the Village's "business
community" is restricted to a four -block area on Second Avenue and isolated pockets of business entities on
Biscayne Boulevard, the Village must monitor property values and other residentially - related trends to determine the
health and vitality of the community.
During the reporting year, Miami Shores found strong property value increases for the fourth consecutive year.
Many of the new residents to the Village have relocated from the western regions of the County and enjoy the
Village's close proximity to Downtown Miami and the adjacent business areas while still having a suburban
atmosphere. High recreational activities, including the Village's first -class aquatics facility, support the residents'
requirement for high standards and outstanding recreation and leisure activities. This, along with its own public
safety department, provides a higher standard of living than that which is found in surrounding municipalities.
On January 29, 2008, the Florida electorate approved an amendment to the Florida Constitution relative to property
taxation. This amendment (referred to as Amendment 1) was placed on the ballot by the Florida legislature at a
special session held in October 2007. With respect to homestead property, Amendment 1 increases the current
$25,000 homestead exemption by another $25,000 (for property values between $50,000 - $75,000), except for
school district taxes. Since the new $25,000 homestead exemption foes not apply to school district taxes, this
effectively amounts to a $15,000 increase to the existing homestead exemption, resulting in an estimated annual
saving of $240 for an average homeowner. Amendment 1 also allows property owners to transfer (make portable)
up to $500,000 of their Save Our Homes benefits to their next homestead when they move. Save Our Homes
became effective in 1995 and limits (caps) the annual increase in assessed value for homestead property to three
percent (3 %) or the percentage change in the Consumer Price Index, whichever is less.
With respect to non - homestead property, Amendment 1 limit (caps) the annual increase in assessed value for non-
homestead property (businesses, industrial property, rental property, second homes, etc.) to ten percent (10 %),
except for school district taxes. The Amendment also provides a $25,000 exemption for tangible personal property.
Amendment I becomes effective on October 1, 2008 with the exception of the ten percent (10 %) assessment cap on
non - homestead property which becomes effective on January 1, 2009.
Based on information received from Miami -Dade County Property Appraiser's Office, the estimated annual loss of
property tax revenues for our city from the additional homestead exemption and the $25,000 exemption for tangible
personal property is approximately $548,527. At present, there is no accurate way to determine the impact of the
portability and assessment cap on non - homestead property provisions in terms of potential loss of property tax
revenues. Estimates for our city show an additional loss of property tax revenues of $167,696.
During the current fiscal year, unreserved fund balance in the General Fund was $4,022,283 compared to $2,050,103
from last year. This $4.0 million is approximately equal to 4 months of General Fund operating expenditures. The
Village, as can be shown in the following graph, is beginning to re -build its unrestricted fund balance, a portion of
unrestricted fund balance will be used to preclude or moderate future tax and user fee increases.
Figure A -3
General Fund Unrestricted Surplus
For the Fiscal Years ended September 30, 1997 -2007
4500000
4000000
3500000
3000000
2500000
2000000
1500000
1000000
500000E
0 `g
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
In 1995, the state of Florida limited all local governments' ability to increase property assessments of homestead
property in any given year to 3 percent or cost of living, whichever is lower. The graph below shows the increase in
total assessed value of City property assessments over the past ten years. For many years, the City, just like many
cities across the country, had to face the challenge of keeping taxes and service charges as low as possible while
providing residents with the level of service they have come to expect.
Figure A -4
Total City Millage
12
7777, 77777-7
ti
10 x Sr �,
8 i 'p,
6x ` 3 ;
4 u {r
2 t z
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
®Operating Millage ■Debt Service Millage
Fiscal year 2008 budgeted expenditures and transfers are expected to be $12,433,025 or 1 percent, over fiscal year
2007. The largest increments are increased salaries and cost -of- living adjustments based on labor agreements with
the police and federal employees' unions.
Requests for Information
This financial report is designed to provide a general overview of the financial condition of Miami Shores Village.
Questions concerning any of the information presented in this report or requests for additional financial information
should be directed to the Acting Finance Director, Holly Hugdhahl, CPA or the Comptroller, Carolyn Modeste at:
MIAMI SHORES VILLAGE
Finance Department
10050 Northeast Second Avenue
Miami Shores, Florida 33138 -2382
-12-
BASIC FINANCIAL STATEMENTS
MLkM SHORES VH LACE, FLORIDA
STATEMENT OF NET ASSETS
ASSETS
Cash and cash equivalents
Accounts receivable
Due from other governments
Deferred charges
Prepaid items
Inventories
Net pension asset
Capital assets not being depreciated
Capital assets being depreciated, net
Total assets
LIABILITIES
Accounts payable and accrued liabilities
Unearned revenues
Accrued interest payable
Noncurrent liabilities:
Due within one year
Due in more than one year
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted for:
Law enforcement
Debt service
Transportation
Construction
Unrestricted
Total net assets
SEPTEMBER 30, 2007
Business-
Governmental type
Activities Activities Total
$ 8,323,352 $ 671,774 $ 8,995,126
835,091
918,010
1,753,101
292,275
-
292,275
79,376
-
79,376
94,764
-
94,764
63,555
67,418
130,973
46,760
-
46,760
2,358,437
-
2,358,437
17,577,542
770,301
18,347,843
29,671,152
2,427,503
32,098,655
450,339
74,114
524,453
235,153
886,675
1,121,828
120,259
-
120,259
565,697
17,640
583,337
11,054,458
52,922
11,107,380
12,425,906
1,031,351
13,457,257
9,393,138 770,301 10,163,439
158,816 -
158,816
636,002 -
636,002
1,917,512 -
1,917,512
632,824 -
632,824
4,506,954 625,851
5,132,805
$ 17,245,246 $ 1,396,152
$ 18,641,398
See notes to basic financial statements.
-13-
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MIAMI SHORES VILLAGE, FLORIDA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED SEPTEMBER 30, 2007
Amounts reported for governmental activities in the statement of activities
(Page 13) are different because:
Net change in fund balances - total governmental funds (Page 16) $ 1,101,885
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense. This is the
amount by which capital outlays exceeded depreciation in the current period.
The details of the difference are as follows:
Capital outlay $ 981,149
Depreciation expense (excluding depreciation in internal service funds) 741,007) 240,142
The issuance of long -term debt (e.g., bonds) provides current financial resources
to governmental funds, while the repayment of the principal of long -term debt
consumes the current financial resources of governmental funds. Also,
governmental funds report the effect of issuance costs, premiums, discounts,
and similar items when debt is first issued, whereas these amounts are
deferred and amortized in the statement of activities.
Principal payments:
General obligation bonds $ 170,000
Revenue notes payable 229,008
399,008
Amortization of issuance costs, premiums and discounts (3,381) 395,627
Some expenses reported in the statement of activities do not require the
use of current financial resources and, therefore, are not reported as
expenditures in governmental funds.
The details of the differences are as follows:
Allocation of internal service fund's net income
478,524
Compensated absences
59,071
Claims payable
(21,318)
Accrued interest payable
3,171
Increase in net pension asset
32,253
Change in net assets of governmental activities (Page 14) $ 2,289,355
See notes to basic financial statements.
-17-
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
ASSETS
Current assets:
Cash and cash equivalents
Accounts receivable
Prepaid items
Inventories
Total current assets
Noncurrent assets:
Capital assets not being depreciated
Capital assets being depreciated, net
Total noncurrent assets
Total assets
T T A Y-) TT T'PTUC'
Liabilities:
Current liabilities:
Accounts payable and accrued liabilities
Unearned revenue
Compensated absences
Claims payable
Total current liabilities
Non - current liabilities:
Compensated absences
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Unrestricted
Total net assets
SEPTEMBER 30, 2007
Business -type Activities -
1,191
Enterprise Funds
Governmental
Stormwater
Activities -
utility
Internal
(a Nonmajor
Service
Sanitation Fund ) Totals
Funds
$ 444,548 $ 227,226 $ 671,774 $ 414,711
859,237 58,773 918,010 3,205
- - - 5,000
67,418 - 67,418 41,636
1,371,203 285,999 1,657,202 464,552
- - - 7,127
678,453 91,848 770,301 354,222
678,453 91,848 770,301 361,349
2,049,656 377,847 2,427,503 825,901
72,923
1,191
74,114
27,985
830,582
56,093
886,675
287,385
16,150
1,490
17,640
10,776
919,655 58,774 978,429
216,295
255,056
48,451
4,471
52,922
32,329
968,106
63,245
1,031,351
287,385
678,453
91,848
770,301
361,349
403,097
222,754
625,851
177,167
$ 1,081,550 $
314,602
$ 1,396,152 $
538,516
See notes to basic financial statements.
-18-
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
PROPRIETARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2007
Charges for services
Operating expenses:
Administrative and general
Personnel expenses
Depreciation
Contractual services
Insurance premiums
Insurance claims
Total operating expenses
Operating income
Non - operating income:
Gain on sale of capital assets
Interest income
Total non - operating income
Income before transfers
Transfers in
Transfers out
Change in net assets
Net assets, beginning, as restated (Note 13)
Net assets, ending
Business -type Activities -
22,333
Enterprise Funds
Governmental
Stormwater
Activities -
utility
Internal
(a Nonmajor
Service
Sanitation Fund Totals
Funds
$ 2,508,236 $ 195,582 $ 2,703,818 $ 2,075,924
788,392
22,333
810,725
530,982
784,850
58,090
842,940
254,448
123,671
22,234
145,905
153,913
632,017
48,126
680,143
-
-
-
-
981,182
-
-
-
139,129
2,328,930
150,783
2,479,713
2,059,654
179,306
44,799
224,105
16,270
- - - 2,269
20,361 2,016 22,377 48,492
20,361 2,016 22,377 50,761
199,667 46,815 246,482 67,031
- - - 411,493
(185,000) (25,000) (210,000) -
14,667 21,815 36,482 478,524
1,066,883 292,787 1,359,670 59,992
$ 1,081,550 $ 314,602 $ 1,396,152 $ 538,516
See notes to basic financial statements.
-19-
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2007
Cash flows from operating activities:
Cash received from customers, governments and other funds
Cash paid to suppliers
Cash paid to employees
Net cash provided (used) by operating activities
Cash flows from non - capital financing activities:
Transfers in
Transfers out
Net cash provided (used) by non - capital
financing activities
Cash flows from capital and related financing activities:
Principal paid on capital debt
Proceeds from sale of capital assets
Acquisition of capital assets
Net cash used by capital and related
financing activities
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
Reconciliation of operating income to net cash
provided (used) by operating activities:
Operating income
Adjustments to reconcile operating income to net
cash provided (used) by operating activities:
Depreciation
Changes in operating assets and liabilities:
Accounts receivable
Due from other funds
Prepaid items
Inventories
Accounts payable and accrued liabilities
Due to other funds
Unearned revenues
Compensated absences
Net cash provided (used) by operating activities
Business -type Activities -
22,234
Enterprise Funds
Governmental
Stormwater
Activities -
Utility
Internal
(a Nonmajor
Service
Sanitation Fund) Totals
Funds
$ 2,289,902 $ 286,835 $ 2,576,737 $ 2,286,177
(966,511) (70,173) (1,036,684) (3,567,139)
(788,750) (57,305) (846,055) (250,672)
534,641 159,357 693,998 (1,531,634)
- - - 411,493
(185,000) (25,000) (210,000) -
(185,000) (25,000) (210,000) 411,493
(984,234)
- 6,846
(96,997) - (96,997) (208,167)
(96,997) - (96,997) (1,185,555)
20,361 2,016 22,377 48,492
273,005 136,373 409,378 (2,257,204)
171,543 90,853 262,396 2,671,915
$ 444,548 $ 227,226 $ 671,774 $ 414,711
$ 179,306 $ 44,799 $ 224,105 $ 16,270
123,671
22,234
145,905
153,913
(256,267)
(24,149)
(280,416)
8
469,700
183,621
653,321
210,245
616
616
1,232
-
(8,352)
-
(8,352)
(35)
(8,066)
(330)
(8,396)
(32,145)
-
(75,796)
(75,796)
(1,883,666)
37,933
7,577
45,510
-
(3,900)
785
(3,115)
3,776
$ 534,641 $
159,357
$ 693,998
$ (1,531,634)
See notes to basic financial statements.
-20-
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
SEPTEMBER 30, 2007
Cash and cash equivalents
Cash held with trustee
Investments:
Common stocks
Corporate bonds
Municipal bonds
U.S. obligations
U.S. Federal agencies
Other receivables
Accrued interest receivable
Total assets
LIABILITIES AND NET ASSETS
Liabilities:
Other liabilities
DROP liability
Deposits held in trust
Total liabilities
Net assets held in trust
Pension
Trust
Funds
Private
Purpose
Trust
Agency
$ 242,513 $ 2,287,015 $ -
- - 118,715
16,784,835 - -
1,589,805 - -
458,898 - -
2,568,194 - -
12,623 - -
63,371 - -
56,974 - -
21,777,213 2,287,015 118,715
1,364 - -
132,070 - -
- - 118,715
133,434 - 118,715
$ 21,643,779 $ 2,287,015 $ -
See notes to basic financial statements.
-21-
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2007
ADDITIONS
Contributions:
City
Employees
State
Other receipts
Total contributions
Investment income:
Net appreciation in fair value of investments
Interest
Dividends
Less investment expenses
Net investment income
Total additions
DEDUCTIONS
Pension benefits
Distribution to charter school
Refunds
Professional services
Total deductions
Change in net assets
Net assets held in trust, beginning
Net assets held in trust, ending
See notes to basic financial statements.
-22-
Pension
Private
Trust
Purpose
Funds
Trust
$ 636,572 $ -
345,338 -
63,371 -
77,715 -
1,122,996 -
2,198,071 -
390,513 122,965
202,801 -
(31,397) -
2,759,988 122,965
3,882,984 122,965
796,095 -
- 180,000
358,116 -
41,912 -
1,196,123 180,000
2,686,861 (57,035)
18,956,918 2,344,050
$ 21,643,779 $ 2,287,015
NOTES TO BASIC FINANCIAL STATEMENTS
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2007
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Miami Shores Village, Florida (the Village) was incorporated in 1931 and is a political
subdivision of the State of Florida located in northeastern Miami -Dade County. The Village
operates under a Council- Manager form of government, with the legislative function being vested
in a five- member council. The Village Council is governed by the Village Charter and by state
and local laws and regulations. The Village Council is responsible for establishment and
adoption of policy. The Village provides the following full range of municipal services
authorized by its charter: public safety, streets, sanitation, stormwater, cultural and recreational
activities, public improvements, planning and zoning, and general administrative services.
The basic financial statements of the Village have been prepared in accordance with accounting
principles generally accepted in the United States (GAAP) as applied to governmental units. The
Governmental Accounting Standards Board (GASB) is the accepted standard- setting body for
governmental accounting and financial reporting. The more significant of the Village's
accounting policies are described below.
a. Financial Reporting Entity
The financial statements were prepared in accordance with government accounting standards
which establishes standards for defining and reporting on the financial reporting entity. The
definition of the financial reporting entity is based upon the concept that elected officials are
accountable to their constituents for their actions. One of the objectives of financial reporting
is to provide users of financial statements with a basis for assessing the accountability of the
elected officials. The financial reporting entity consists of the primary government,
organizations for which the primary government is financially accountable, and other
organizations for which the nature and significance of their relationship with the primary
government are such that exclusion would cause the reporting entity's financial statements to
be misleading or incomplete. The Village is financially accountable for a component unit if it
appoints a voting majority of the organization's governing board and it is able to impose its
will on that organization or there is a potential for the organization to provide specific
financial benefits to, or impose specific financial burdens on the Village. The Village does not
have any component units that meet the definition disclosed above.
b. Government -wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net assets and the statement
of activities) report information on all of the non - fiduciary activities of the Village.
Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business -type activities, which rely to a significant
extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include (1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
-23-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
b. Government -wide and Fund Financial Statements (Continued)
provided by a given function or segment and (2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function or segment. Taxes and
other items not properly included among program revenues are reported instead as general
revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government -wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements. All remaining nonmajor
governmental funds are aggregated and reported as other governmental funds.
c. Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund financial statements. The agency fund has no measurement focus. Revenues are
recorded when earned and expenses are recorded when a liability is incurred, regardless of the
timing of related cash flows. Property taxes are recognized as revenues in the year for which
they are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the Village considers revenues to be available if they are
collected within 60 days of the end of the current fiscal period. Expenditures generally are
recorded when a liability is incurred, as under accrual accounting. However, debt service
expenditures, as well as expenditures related to compensated absences and claims and
judgments, are recorded only when payment is due.
Property taxes, franchise fees, utility taxes, sales taxes, licenses, and interest associated with
the current fiscal period are all considered to be susceptible to accrual and so have been
recognized as revenues of the current fiscal period. All other revenue items are considered to
be measurable and available only when cash is received by the Village.
The Village reports the following major governmental funds:
General Fund — This is the Village's primary operating fund. It accounts for all financial
resources of the Village, except those required to be accounted for in another fund.
Resources are derived primarily from property taxes, franchise fees and utility taxes,
charges for services and state shared revenues. Expenditures are incurred to provide general
government, public safety, public works and community services.
-24-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
c. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued)
Excise Tax Fund — This fund records revenues received by the Village for contractually -
adopted franchise fee agreements and corresponding public service or utility taxes. The
receipts of these funds are used to subordinate the Village's General Obligation Bond Series
1999 should insufficient debt service revenues be received from ad valorem levies. Surplus
proceeds are then transferred out of this fund and into the General Fund for operating
purposes.
Local Option Gas Tax Fund — This fund accounts for the revenues from the six cents and
additional three cents sales tax levied on all petroleum products sold in Miami -Dade
County.
Building Better Communities — This fund accounts for the improvements to sidewalks and
drainage systems which are being funded by Miami -Dade County.
The Village reports the following major proprietary fund:
Sanitation Fund — This fund accounts for the operations and maintenance of the Village's
sanitation system.
The Village reports the following nonmajor proprietary fund:
Stormwater Utility Fund — This fund accounts for the operations and maintenance of the
Village's stormwater system.
Additionally, the Village reports the following fund types:
Other Governmental Funds — The other governmental funds are used to account for all
other various special revenue, debt service and capital project funds.
Internal Service Funds — The internal service funds are 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 Village has two internal service funds, the Risk
Management Fund and the Fleet Maintenance Fund.
Pension Trust Funds — The pension trust funds accumulate resources for pension benefit
payments. The pension trust funds account for the activities of the Village's two pension
plans.
Private Purpose Trust Fund — This fund accounts for a donation from a foundation to be
held by the Village on behalf of the Doctors Charter School to assist with meeting operating
needs of the school.
Agency Fund — This fund is used to account for assets that the Village holds for others in an
agency capacity.
-25-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
c. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued)
Private - sector standards of accounting and financial reporting issued prior to December 1, 1989,
generally are followed in both the government -wide and proprietary fund financial statements to
the extent that those standards do not conflict with or contradict guidance of the Governmental
Accounting Standards Board. The Village has the option of following subsequent private- sector
guidance for their business -type activities and enterprise funds, subject to this same limitation.
The Village has elected not to follow subsequent private - sector guidance.
As a general rule, the effect of interfund activity has been eliminated from the government -
wide financial statements. Exceptions to this general rule are charges between the Village's
utility functions and various other functions of the Village. Elimination of these charges would
distort the direct costs and program revenues reported for the various functions concerned.
Amounts reported as program revenues include (1) charges to customers or applicants for goods,
services, or privileges provided, (2) operating grants and contributions, and (3) capital grants and
contributions. Internally dedicated resources are reported as general revenues rather than as
program revenues. Likewise, general revenues include all taxes with the exception of local
option gas tax. Proceeds from the local option gas tax are used to fund transportation related
expenditures and therefore are reported as program revenues under the function "Public Works ".
Proprietary funds distinguish operating revenues and expenses from non - operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues of the Village's sanitation and stormwater services and of the
Village's internal service funds are charges to customers for services. Operating expenses for
enterprise funds and internal service funds include the costs of services, administrative
expenses, and depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as non - operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the government's
policy to use restricted resources first, then unrestricted resources as they are needed.
d. Assets, Liabilities and Net Assets or Equity
1. Cash and Cash Equivalents
Cash and cash equivalents include cash on hand and investments with the State Board of
Administration investment pool (2A -7 Pool).
The Village maintains a pooled cash account for all funds. 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 represent the amount owned by each fund of the
Village. Interest earned on pooled cash and cash equivalents is allocated monthly based
upon equity balances of the respective funds.
-26-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
d. Assets, Liabilities and Net Assets or Equity (Continued)
2. Investments
The Village's investments are reported at fair value. The investments held with the State
Board Investment Pool (2A -7 Pool) are 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.
3. Interfund Receivables and Payables
Activity between funds that are representative of lendingiborrowing arrangements
outstanding at the end of the fiscal year are referred to as either "due to /from other funds"
(i.e., the current portion of interfund loans). Any residual balances outstanding between the
governmental activities and business -type activities are reported in the government -wide
financial statements as "internal balances."
4. Receivables
Receivables include amounts due from others for services provided by the Village.
Receivables are recorded and revenues are recognized as earned or specific program
expenditures are incurred.
5. Prepaid Items
Prepaid items consist of costs applicable to future accounting periods which have been paid
prior to the end of the fiscal year. Amounts reported in the governmental funds are offset by
an equal reservation of fund balance in the fund financial statements. This is an indication
that these components of current assets do not constitute "available spending resources ".
6. Inventories
Inventories of materials and supplies in the General Fund are recorded as expenditures when
purchased (purchase method) and are stated at cost. Inventory in the Proprietary Funds
consists of fuel, oil, tires, parts, office supplies and other inventories held for consumption.
The initial cost is recorded as an asset at the time of purchase and is charged against
operations in the period when used (consumption method) using the first -in, first -out
method. Inventories are stated at the lower of cost or market on the balance sheet with a
related reservation of fund balance for inventories accounted for under the purchase method.
7. Capital Assets
Capital assets, which include property, plant and equipment, and certain infrastructure assets
(e.g., roads, curbs and gutters, lighting systems, and similar items), are reported in the
applicable governmental or business -type activities columns in the government -wide financial
-27-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
d. Assets, Liabilities and Net Assets or Equity (Continued)
7. Capital Assets (Continued)
statements. Capital assets are defined by the Village as assets with an initial, individual cost
of more than $1,000 and an estimated useful life in excess of three years. Such assets are
recorded at historical cost or estimated historical cost if purchased or constructed. Donated
capital assets are recorded at their estimated fair market value at the date donated.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets lives are not capitalized. Major outlays for capital assets and
improvements are capitalized as projects are constructed. Interest incurred during the
construction phase of capital assets of business -type activities is included as part of the
capitalized value of the asset constructed. No such costs were capitalized in 2007.
Capital assets of the Village are depreciated using the straight -line method over the
following estimated useful lives:
Years
Buildings and improvements 10 -40
Land improvements 40
Infrastructure 30
Sanitation equipment 10
Vehicles 5
Other equipment, machinery, furniture and fixtures 3 -10
8. Deferred Charges
Deferred charges in the government -wide financial statements represent the unamortized
portion of bond issuance costs. These costs are being amortized over the term of the
respective bond issue.
9. Compensated Absences
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 allows all regular non - temporary employees to accrue
vacation leave with pay on a monthly basis. Vacation leave accrued in a previous year must
be used prior to the next year's anniversary date (unless authorized by the Village
Manager). Upon separation from Village employment in good standing, employees shall
receive a lump sum payment for any unused accrued vacation leave up to the maximum
allotted for the employee's length of service.
-28-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
d. Assets, Liabilities and Net Assets or Equity (Continued)
9. Compensated Absences (Continued)
The Village's sick leave policy is to accumulate one normal work day per month up to a
maximum of 720 hours for a general employee. A general employee shall receive payment
for one hundred percent (100% to a maximum of 720 hours) of accrued sick leave upon
retirement and fifty percent (50 %) upon separation in good standing.
For both vacation and sick leave, there is no payout for an employee who is discharged for
misconduct, termination or is not in good standing with the Village.
All vacation and sick leave pay is accrued when incurred in the government -wide and
proprietary fund financial statements. A liability for these amounts is reported in the
governmental funds only if they have matured, for example, as a result of employee
resignations and retirements. The general fund has typically been used to liquidate such
amounts.
10. Long -Term Obligations
In the government -wide financial statements, and proprietary fund types in the fund
financial statements, long -term debt and other long -term obligations are reported as
liabilities in the applicable governmental activities, business -type activities, or proprietary
fund type statement of net assets. Bond premiums and discounts, as well as issuance costs,
are deferred and amortized over the life of the bonds using the straight -line amortization
method. Bonds payable are reported net of the applicable bond premium or discount. Bond
issuance costs are reported as deferred charges and amortized over the term of the related
debt.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of
debt issued is reported as an other financing source. Premiums received on debt issuances
are reported as other financing sources while discounts on debt issuances are reported as
other financing uses. Issuance costs, even if withheld from the net proceeds received, are
reported as debt service expenditures.
11. Property Taxes
Property taxes (ad valorem taxes) are assessed on January 1St (the lien date) and are billed
and payable November 1St. They are due March 31St and become delinquent April 1St. On
June 1St, delinquent taxes are offered for sale in the form of tax certificates. These taxes are
collected by the County and are remitted to the Village. As of September 30, 2007
delinquent property taxes were immaterial in amount.
-29-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
d. Assets, Liabilities and Net Assets or Equity (Continued)
11. Property Taxes (Continued)
Assessed values are established by the Miami -Dade County Property Appraiser for all
properties in the County at fair market value. The County bills and collects all property
taxes for the Village. The assessed value of property at January 1, 2006, upon which the
2006 -2007 levy was based, was approximately $835,000,000.
Under Florida law, the assessment of all properties and the collection of all County,
municipal, school district and special district property taxes are consolidated in the offices
of the County Property Appraiser and County Tax Collector.
The Village is permitted by Article 7, Section 8 of the Florida Constitution to levy taxes up
to 10 mills ($10 per $1,000 of assessed valuation) for general governmental services other
than general obligation debt service. To the extent required by voter approved general
obligation debt, unlimited amounts may be levied to pay debt service. The millage rate
levied to finance general governmental services for the 2006 -07 fiscal year was 8.250 mills
($8.25 per $1,000 of assessed valuation).
12. Fund Equity
In the fund financial statements, governmental funds report reservations of fund balance for
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 previous fiscal obligations or tentative plans of the Village. Such plans or intent
are subject to change at the discretion of the Village.
Unreserved and undesignated fund balance is the portion of fund equity available for any
lawful use.
13. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements and revenue and expenses during the period
reported. These estimates include assessing collectibility of receivables, the use and
recoverability of inventory, the realization of pension and postretirement obligations, and
useful lives and impairment of tangible assets, among others. Estimates and assumptions
are reviewed periodically and the effects of revisions are reflected in the financial
statements in the period they are determined to be necessary. Actual results may differ from
those estimates.
-30-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
a. Prior Period Adjustment
As a result of the prior period adjustments in the Fleet Maintenance Fund (internal service
fund), the governmental activities beginning note payable was restated by $984,234.
b. Excess of Expenditures over Appropriations
Expenditures exceeded appropriations by the amounts indicated in the following areas:
General Fund:
Capital outlay
$ 20,708
Transfers out
175,908
Local Option Gas Tax Fund:
Public works
2,950
Transfers out
334,284
Debt Service Fund:
Interest
4,197
NOTE 3. DEPOSITS AND INVESTMENTS
Deposits
In addition to insurance provided by the Federal Depository Insurance Corporation, deposits
are held in banking institutions approved by the State Treasurer of the State of Florida to hold
public funds. Under Florida Statutes Chapter 280, Florida Security for Public Deposits Act, the
State Treasurer requires all Florida qualified public depositories to deposit with the Treasurer
or another banking institution eligible collateral. In the event of a failure of a qualified public
depository, the remaining public depositories would be responsible for covering any resulting
losses. Accordingly, all amounts reported as deposits are deemed as insured or collateralized
with securities held by the entity or its agent in the entity's name.
Investments
The Village is authorized to invest in those instruments authorized by the Florida Statutes,
including obligations of the U.S. Treasury, its agencies, instrumentalities and the State Board of
Administration Investment Pool (SBA). The State Board of Administration administers the
Local Government Surplus Funds Trust Fund and is governed by Ch. 19 -7 of the Florida
Administrative Code. These rules provide guidance and establish the general operating
procedures for the administration of the Local Government Surplus Funds Trust Fund.
Additionally, the Office of the Auditor General performs the operational audit of the activities
and investments of the State Board of Administration. The Local Government Surplus Funds
Trust Fund is not a registrant with the Securities and Exchange Commission (SEC); however,
the board has adopted operating procedures consistent with the requirements for a 2a -7 fund.
mie
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 3. DEPOSITS AND INVESTMENTS (Continued)
Investments — City
Credit Risk
Excess funds are sent to the Florida State Board of Administration (SBA) for their
investment. The SBA does not have a rating from a nationally recognized statistical rating
organization (see Note 12).
Investments — Pension Plans
As of September 30, 2007, the Village's Defined Benefit Pension plans had the following
investments:
Interest Rate Risk
Interest rate risk refers to the portfolio's exposure to fair value losses arising from
increasing interest rates. The Plans have formal investment policies that limit investment
maturities as a means of managing its exposure to market value losses arising from
increasing interest rates.
Credit Risk
State law and the Plans' investment policies limit investments in bonds, stocks, or other
evidences of indebtedness issued or guaranteed by a corporation organized under the laws
of the United States, any state or organized territory of the United States, or the District of
Columbia, provided the corporation is listed on one or more of the recognized national stock
exchanges or on the National Market System of the NASDAQ Stock Market and in the case
of bonds only, holds a rating in one of the three highest classifications by a major rating
service. Investment in foreign companies is limited to American Depository Receipts
(ADRs) and foreign common stock listed on U.S. Exchanges. The Plan's investment
policies limit investments to common stocks, corporate bonds rated "A" or higher by
Moody or Standard & Poor's, collateralized mortgage obligations (CMO's) rated "Aaa" by
Moody's or "AAA" by Standard & Poor's rating services.
The Plans' corporate bonds were rated an average of "A" by Standard & Poor's. The Plans'
mutual bond fund investments were all rated "AAA" under Standard & Poor's ratings.
-32-
Investment Maturities (In Years)
Fair
Less than
1 to 5
6 to 10
More
Pension Investments
Value
1 Year
Years
Years
Than 10
U.S. Treasuries
$ 938,132
$ -
$ 251,638
$ 686,494
$ -
U.S. Agency Obligations
1,642,684
42,097
812,022
641,763
146,802
Common Stocks
16,784,835
3,356,967
5,874,692
7,553,176
-
Corporate Bonds
2,075,703
45,061
1,024,466
665,299
340,877
$21,441,354
$3,444,125
$7,962,818
$9,546,732
$487,679
Interest Rate Risk
Interest rate risk refers to the portfolio's exposure to fair value losses arising from
increasing interest rates. The Plans have formal investment policies that limit investment
maturities as a means of managing its exposure to market value losses arising from
increasing interest rates.
Credit Risk
State law and the Plans' investment policies limit investments in bonds, stocks, or other
evidences of indebtedness issued or guaranteed by a corporation organized under the laws
of the United States, any state or organized territory of the United States, or the District of
Columbia, provided the corporation is listed on one or more of the recognized national stock
exchanges or on the National Market System of the NASDAQ Stock Market and in the case
of bonds only, holds a rating in one of the three highest classifications by a major rating
service. Investment in foreign companies is limited to American Depository Receipts
(ADRs) and foreign common stock listed on U.S. Exchanges. The Plan's investment
policies limit investments to common stocks, corporate bonds rated "A" or higher by
Moody or Standard & Poor's, collateralized mortgage obligations (CMO's) rated "Aaa" by
Moody's or "AAA" by Standard & Poor's rating services.
The Plans' corporate bonds were rated an average of "A" by Standard & Poor's. The Plans'
mutual bond fund investments were all rated "AAA" under Standard & Poor's ratings.
-32-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 3. DEPOSITS AND INVESTMENTS (Continued)
Investments — Pension Plans (Continued)
Concentration of Credit Risk
The Plans' investment policies prohibit equity securities concentrations greater than 5% in the
securities of any one company at cost nor can the aggregate investment in equity securities
total more than 70% of the total funds asset value at market; and fixed income securities
concentrations greater than 10% in any one issuer with the exception of U.S. government or
agency issues. As of September 30, 2007, the value of each equity position held by the Plans'
portfolios consisted of less than 5% of total equity assets and less than 70% in the aggregate.
Three percent (3 %) of the Village's total Pension Investments are fixed income securities in
the Federal National Mortgage Association. Given the restriction to the highest rating, the
additional concentration is not viewed to be an additional risk by the Village.
Risks and Uncertainties
The Plans have investments in a combination of investment securities. Investment
securities are exposed to various risks, such as interest rate, market and credit risk. Due to
the level of risk associated with certain investment securities and the level of uncertainty
related to changes in the value of investment securities, it is at least reasonably possible that
changes in risks in the near term would materially affect the balances and the amounts
reported in the statements of plan net assets and the statements of changes in plan net assets.
The Plans through their investment advisors monitor the Plans' investments and risks
associated therewith on a regular basis, which the Plans believe minimizes these risks.
NOTE 4. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Interfund receivables and payables at September 30, 2007 were as follows:
Fund
General fund
Excise tax fund
Building better communities
Nonmaj or governmental funds
Due from Due to
Other Funds Other Funds
$ 597,763 $
- 202,249
- 192,275
- 203,239
$ 597,763 $ 597,763
These outstanding balances between funds result mainly from the time lag between the dates that
(a) interfund goods and services are provided or reimbursable expenditures /expenses occur, (b)
transactions are recorded in the accounting system and (c) payments between funds are made.
-33-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 4. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (Continued)
Interfund transfers during September 30, 2007 were as follows:
$ 2,797,862 $ 142,142 $ 805,049 $ 411,493 $ 4,156,546
Transfers are used to (a) move revenues from the fund that statute or budget requires to collect
them to the fund the statute or budget requires to expend them and (b) move unrestricted revenues
collected in the General Fund to finance various programs accounted for in other funds in
accordance with budgetary authorization.
NOTE 5. ACCOUNTS RECEIVABLE
Accounts receivable as of September 30, 2007 for the Village's major and nonmajor funds in the
aggregate are as follows:
Transfers In
Local
Nonmajor
Building
Nonmajor
Internal
Governmental Storm-
Service
General
Better
Governmental
Service
Receivable:
Transfers Out
Fund
Communities
Funds
Funds
"Total
General fund
$ -
$ -
$ 780,049
$ 411,493
$1,191,542
Excise tax fund
2,414,022
-
-
-
2,414,022
Local option gas tax fund
-
142,142
25,000
-
167,142
Nonmajor governmental funds
173,840
-
-
-
173,840
Sanitation fund
185,000
-
-
-
185,000
Stormwater fund
25,000
-
-
-
25,000
$ 2,797,862 $ 142,142 $ 805,049 $ 411,493 $ 4,156,546
Transfers are used to (a) move revenues from the fund that statute or budget requires to collect
them to the fund the statute or budget requires to expend them and (b) move unrestricted revenues
collected in the General Fund to finance various programs accounted for in other funds in
accordance with budgetary authorization.
NOTE 5. ACCOUNTS RECEIVABLE
Accounts receivable as of September 30, 2007 for the Village's major and nonmajor funds in the
aggregate are as follows:
Local
Nonmajor
Internal
Excise
Option
Governmental Storm-
Service
General Tax
Gas Tax
Funds Sanitation water
Funds Total
Receivable:
Accounts $ 252,556 $ -
$ -
$ 159,578 $ 859,237 $ 58,773
$ 3,205 $1,333,349
Taxes 104,536 275,915
21,757
17,544 - -
- 419,752
Total receivable $ 357,092 $ 275,915 $ 21,757 $ 177,122 $ 859,237 $ 58,773 $ 3,205 $1,753,101
-34-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 6. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2007 was as follows:
*The Village has restated its governmental activities and business -type activities capital assets by
$7,1 10,140 and $71,087, respectively, as of September 30, 2007. See Note 13 for further details.
-35-
Beginning
Ending
Balance*
Additions
Deductions
Balance
Governmental activities:
Capital assets not being depreciated:
Land
$ 2,358,437
$ -
$ -
$ 2,358,437
Construction -in- progress
101,594
-
(101,594)
-
Total capital assets not being depreciated
2,460,031
-
(101,594)
2,358,437
Capital assets being depreciated:
Buildings and improvements
11,000,731
-
-
11,000,731
Land improvements
3,366,252
17,660
-
3,383,912
Infrastructure
15,661,729
-
-
15,661,729
Furniture, fixtures and equipment
1,961,412
1,259,881
(155,795)
3,065,498
Total capital assets being depreciated
31,990,124
1,277,541
(155,795)
33,111,870
Less accumulated depreciation for:
Buildings and improvements
2,923,734
642,445
-
3,566,179
Land improvements
1,317,097
883
-
1,317,980
Infrastructure
8,457,986
13,998
-
8,471,984
Furniture, fixtures and equipment
2,096,386
237,594
(155,795)
2,178,185
Total accumulated depreciation
14,795,203
894,920
(155,795)
15,534,328
Total capital assets being depreciated, net
17,194,921
382,621
-
17,577,542
Governmental activities capital assets, net
$19,654,952
$ 382,621
$ (101,594)
$19,935,979
Business -type activities:
Capital assets being depreciated:
Utility plant and equipment
$ 2,125,559
$ 96,997
$ 53,511
$ 2,169,045
Less accumulated depreciation for:
Utility plant and equipment
1,306,350
145,905
53,511
1,398,744
Total capital assets being depreciated, net
819,209
(48,908)
-
770,301
Business -type activities capital assets, net
$ 819,209
$ (48,908)
$ -
$ 770,301
*The Village has restated its governmental activities and business -type activities capital assets by
$7,1 10,140 and $71,087, respectively, as of September 30, 2007. See Note 13 for further details.
-35-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 6. CAPITAL ASSETS (Continued)
Depreciation expense was charged to functions as follows:
Governmental activities:
General government $ 253,210
Public safety 234,778
Public works 125,361
Parks and recreation 127,658
741,007
Capital assets held by the government's internal service funds are
charged to the various functions based on their usage of assets 153,913
Total depreciation expense - governmental activities $ 894,920
Business -type activities:
Sanitation $123,671
Stormwater 22,234
Total depreciation expense - business -type activities $145,905
NOTE 7. LONG -TERM LIABILITIES
a. Summary of Long -Term Liabilities
The following is a summary of changes in long -term liabilities of the Village for governmental
and business -type activities for the year ended September 30, 2007.
Governmental activities:
General obligation bonds payable - 2004
Less issuance discount
General obligation bonds payable - 1999
General obligation loan - 2006
Subtotal
Compensated absences
Claims payable
Business -type activities:
Compensated absences
Beginning
Ending
Due Within
Balance
Additions
Reductions
Balance
One Year
$ 4,805,000
$ -
$ 100,000
$ 4,705,000
$ 105,000
(8,925)
-
(331)
(8,594)
-
2,780,000
-
70,000
2,710,000
75,000
3,444,819
-
229,008
3,215,811
237,624
11,020,894
-
398,677
10,622,217
417,624
607,914
63,896
79,872
591,938
148,073
384,682
77,645
56,327
406,000
-
$12,013,490
$141,541
$ 534,876
$11,620,155
$ 565,697
$ 73,676 $ 27,885 $ 30,999 $ 70,562 $ 17,640
-36-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 7. LONG -TERM LIABILITIES (Continued)
2004 General Obligation Bonds
The 2004 General Obligation bonds were issued by the Village of Miami Shores. Principal is
due annually over 30 years at various amounts from $105,000 in 2008 to a final payment of
$305,000 in 2033. The bonds bear interest at variable rates ranging from 3% to 5 %, payable
semi - annually.
1999 General Obligation Bonds
The 1999 General Obligation bonds were issued by the Florida Municipal Loan Council.
Principal is due annually over 30 years at various amounts from $75,000 in 2008 to a final
payment of $195,000 in 2029. The bonds bear interest at variable rates ranging from 3.20% to
5.00 %, payable semi - annually.
Principal
Interest
Total
Fiscal year ended September 30:
2008
$ 105,000
$ 214,080
$ 319,080
2009
110,000
210,930
320,930
2010
110,000
207,630
317,630
2011
115,000
204,110
319,110
2012
120,000
200,258
320,258
2013 -2017
675,000
931,013
1,606,013
2018 -2022
820,000
777,338
1,597,338
2023 -2027
1,025,000
563,563
1,588,563
2028 -2032
1,320,000
280,500
1,600,500
2033
305,000
15,250
320,250
Total
$ 4,705,000
$ 3,604,670
$ 8,309,670
1999 General Obligation Bonds
The 1999 General Obligation bonds were issued by the Florida Municipal Loan Council.
Principal is due annually over 30 years at various amounts from $75,000 in 2008 to a final
payment of $195,000 in 2029. The bonds bear interest at variable rates ranging from 3.20% to
5.00 %, payable semi - annually.
-37-
Principal
Interest
Total
Fiscal year ended September 30:
2008
$ 75,000
$ 132,432
$ 207,432
2009
75,000
129,338
204,338
2010
80,000
126,150
206,150
2011
80,000
122,650
202,650
2012
85,000
119,050
204,050
2013 -2017
500,000
529,688
1,029,688
2018 -2022
630,000
392,862
1,022,862
2023 -2027
805,000
219,500
1,024,500
2028 -2029
380,000
28,750
408,750
Total
$ 2,710,000
$ 1,800,420
$ 4,510,420
-37-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 7. LONG -TERM LIABILITIES (Continued)
Series 2006 Promissory Note
In May 2006, the Village issued a $3,500,000 promissory note to SunTrust Bank bearing an
interest rate of 4.56 %. The note was secured for the purpose of repaying outstanding notes and
lines of credit. The note matures in May 2018 and requires quarterly principal and interest
payments throughout the life of the loan. The security for the note is an appropriation from
legally available non -ad valorem revenues and a pledge of the guaranteed entitlement revenues
received by the Village in each fiscal year. The outstanding balance at September 30, 2007
was $3,215,811.
Series 2006 Promissory Note
Fiscal year ended September 30:
2008
2009
2010
2011
2012
2013-2017
2018
Total
NOTE 8. POST - EMPLOYMENT RETIREMENT BENEFITS
Plan Description
Principal Interest Total
$ 237,624 $142,703 $ 380,327
248,646
131,681
380,327
260,180
120,147
380,327
272,248
108,079
380,327
284,877
95,450
380,327
1,635,290
266,345
1,901,635
276,946
6,382
283,328
$3,215,811
$870,787
$4,086,598
The Village provides post - retirement health benefits in accordance with the requirements of an
agreement between the Village and the Police Benevolent Association (PBA).
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 is suspended.
The employer makes benefit payments directly to an insurance carrier or health benefit
program on behalf of the eligible retired police officer up to $100 which is funded through
payroll deductions from each police officer. Total contributions for the year were $5,500. If
-38-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 8. POST - EMPLOYMENT RETIREMENT BENEFITS (Continued)
Plan Description (Continued)
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.
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.
The Village does not provide any other post - employment retirement benefits.
NOTE 9. RISK MANAGEMENT
The Village is exposed to various risks of loss related to torts, theft, damage to and destruction of
assets, errors and omissions and natural disasters for which it has purchased commercial insurance.
Prior to October 1, 2005, the Village was self - insured for these claims up to certain limits.
The amount of settlements for each of the past three fiscal years did not exceed insurance
coverage.
Liabilities in the risk management internal service fund include amounts for claims that have been
incurred but not reported (IBNR's) as well as known claims that existed prior to purchasing
commercial insurance. Claim liabilities are calculated considering the recent claim settlement
trends.
Changes in the balances of estimated claims for the years ended September 30 are as follows:
Unpaid claims, beginning
Incurred claims (including IBNR's)
Claim payments and disbursements
Unpaid claims, ending
9111y =11I1L9
$ 384,682 $ 506,665
77,645 -
(56,327) (121,983)
$ 406,000 $ 384,682
As of September 30, 2007, the Village has related unfunded claims totaling $189,705. In addition
to the above claims liability, the Village has a commitment to Miami -Dade County for prior
workers' compensation claims for $189,705. The Village generally makes annual payments to the
County on a reimbursable basis.
-39-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 10. PENSION PLANS
The Village maintains two separate single - employer Public Employee Retirement Systems
(PERS). These plans were 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 pension trust funds.
Summary of Significant Account Policies
Basis of Accounting
The Village's defined benefit pension funds 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 each 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 in fair value of investments,
realized and unrealized gains (losses) are determined on the basis of specific cost.
Within certain limitations as specified in each of the Plans, the investment policies are
determined by the Plans' Board of Trustees and is implemented by each Plan's investment
advisor.
There were no investments (other than U.S. Government Securities and U.S. Government
Guaranteed Obligations) in any one organization that represented 5% or more of plan net
assets, nor were there any investments in, loans to, or leases with any Village official, Plan
Trustee or other related parties.
a. General Employees' Retirement Plan
Plan Description
The General Employees' Retirement System (the Plan) is a single - employer defined
benefit pension plan that covers all Village employees, except for police, and certain
appointed employees. The Plan was established on January 1, 1957 by the Village
Council. On December 31, 1999, the Plan was split between the general employees and
the police officers. The Plans are governed by certain provisions of Chapter 112, Florida
Statutes. The Board of Trustees for the Plan administers the Plan. Plan amendments
must be authorized by the Village Council.
The Plan provides retirement and death benefits to Plan members and beneficiaries. The
Plan does not issue a separate financial report.
-40-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 10. PENSION PLANS (Continued)
Method Used to Value Investments (Continued)
a. General Employees' Retirement Plan (Continued)
Plan Description (Continued)
Effective December 5, 2006, current employees may elect to participate in the deferred
retirement option plan (DROP) the first day of the month coincident with or next following
the date of Normal Retirement. Election into the DROP is voluntary. The employee may
elect to participate in the plan for a maximum of 60 months. Once participation in the
DROP commences, such participation constitutes an irrevocable election.
A member's continuous service and accrued benefit under the plan shall be determined
and frozen on the effective date of the employee's election to participate in the DROP.
Additional continuous service or benefits under the plan shall not be accrued. No
payments are made directly to the employee from the pension plan while the member
participates in the drop plan.
During the period of the member's participation in the DROP, the employee's normal
retirement benefit shall be credited to the employee's DROP account. No further
contributions to the general employee pension plan will be required by the Village nor
the employee on behalf of any employee who has elected participation in the DROP.
The member's account is invested as part of the corpus of the system by the Board and is
credited with interest equal to the overall net rate of return on the fund assets during the
reporting period during which the member participates in the DROP.
Upon termination of employment with the Employer or 60 months of DROP participation,
the balance of the DROP account will become payable in addition to the monthly Normal
Retirement Benefit (which is based on credited service and average monthly salary on the
DROP election date). The DROP account is distributed to the member in a single lump
sum payment or a direct rollover to another qualified retirement plan. If a member dies
before the member's DROP account balance has been paid in full, distribution of the
DROP account balance will be made according to the member's designation. DROP
payment to a beneficiary will be in addition to any retirement benefits payable by the plan.
Under any option and in no event may the total benefit payments to the member or the
beneficiary be less than the member's own accumulated contributions.
At the end of September 30, 2007, total liabilities for the DROP were $20,595.
Funding Policy
Plan members are required to contribute 6% of their annual covered salary. The Village
is not required to contribute to the plan. The Village is required to contribute at
actuarially determined rates that are designed to accumulate sufficient assets to pay
benefits when due.
-41-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 10. PENSION PLANS (Continued)
Method Used to Value Investments (Continued)
a. General Employees' Retirement Plan (Continued)
Annual Pension Cost and Net Pension Obligation (Asset)
As of October 1, 2006, the date of the latest actuarial valuation, the Village's net pension
obligation (asset) was as follows:
Annual required contributions (ARC)
$ 56,709
Interest on net pension asset
1,220
Adjustment to ARC
(1,654)
Annual pension cost
56,275
Actual contribution
56,876
Change in net pension obligation (asset)
(601)
Net pension obligation (asset), beginning
15,845
Net pension obligation (asset), ending
$ (15,244) (1)
(1) Not recorded in the entity -wide financial statements due to immateriality.
The annual required contributions for the current year were determined as part of the
October 1, 2006 actuarial valuation using the aggregate method. This method does not
identify and separately amortize the unfunded actuarial liabilities. The actuarial
assumptions included (a) 8% investment rate of return and (b) projected salary increases
of 6.5% per year. Both (a) and (b) included an inflation component of 4 %. The actuarial
value of assets was determined using market values.
Three -Year Trend Information
Annual
Percentage
Net Pension
Pension
of APC
Obligation
Fiscal Year Ending Cost (APC)
Contributed
Asset
9/30/2004 $ -
0.0%
$ -
9/30/2005 15,825
0.0%
15,845
9/30/2006 56,275
103.9%
15,244
Other
The General Employees Retirement Plan does not issue separate stand -alone financial
statements, therefore, included below is the Statement of Fiduciary Net Assets and the
Statement of Changes in Net Assets as of and for the fiscal year ended September 30,
2007.
-42-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 10. PENSION PLANS (Continued)
Method Used to Value Investments (Continued)
a. General Employees' Retirement Plan (Continued)
Other (Continued)
Statement of Fiduciary Net Assets
September 30, 2007
Assets:
Cash and cash equivalents $ 113,202
Investments, at fair value 9,286,798
Accrued interest receivable 25,116
Total assets 9,425,116
Liabilities 20,595
Net assets held in trust for pension benefits $ 9,404,521
Statement of Changes in Net Assets
Year Ended September 30, 2007
ADDITIONS
Contributions $ 245,597
Net investment income 1,197,387
Other receipts 36,321
Total additions 1,479,305
DEDUCTIONS
Pension benefits
358,116
Total deductions
358,116
Changes in net assets
1,121,189
Net assets held in trust for pension benefits, beginning
8,283,332
Net assets held in trust for pension benefits, ending
$ 9,404,521
b. Police Officers' Retirement Plan
Plan Description
The Police Officers' Retirement System (the Plan) is a single- employer defined benefit
pension plan that covers substantially all of the Village's certified police officers. The
Plan was established as of the effective date of January 1, 1957 by the Village Council.
It was amended on December 31, 1999, to split the Plan between General Employees
and Police Officers. The Plan is also governed by certain provisions of Chapter 185,
Florida Statutes. The Board of Trustees for the Plan administers the Plan. Plan
amendments must be authorized by the Village Council.
-43-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 10. PENSION PLANS (Continued)
Method Used to Value Investments (Continued)
b. Police Officers' Retirement Plan (Continued)
Annual Pension Cost and Net Pension Obligation (Asset)
As of October 1, 2006, the date of the latest actuarial valuation, the Village's net pension
obligation (asset) was as follows:
Annual required contributions (ARC)
$ 594,211
Interest on net pension asset
(1,165)
Adjustment to ARC
2,090
Annual pension cost
595,136
Actual contribution
627,389
Change in net pension obligation (asset)
(32,253)
Net pension obligation (asset), beginning
(14,507)
Net pension obligation (asset), ending
$ (46,760)
The annual required contributions for the current year were determined as part of the
October 1, 2006 actuarial valuation using the aggregate method. This method does not
identify and separately amortize the unfunded actuarial liabilities. The actuarial
assumptions included (a) 8% investment rate of return and (b) projected salary increases
of 6.5% per year. Both (a) and (b) included an inflation component of 4 %. The actuarial
value of assets was determined using market values.
Three -Year Trend Information
Annual Percentage Net Pension
Pension of APC Obligation
Fiscal Year Ending Cost (APC) Contributed Asset
9/30/2004
$ 198,613
99.4%
$ (16,747)
9/30/2005
280,653
99.6%
(15,616)
9/30/2006
298,867
99.6%
(14,507)
Other
The General Employees Retirement Plan does not issue separate stand -alone financial
statements, therefore, included below is the Statement of Fiduciary Net Assets and the
Statement of Changes in Net Assets as of and for the fiscal year ended September 30,
2007.
-44-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 10. PENSION PLANS (Continued)
Method Used to Value Investments (Continued)
b. Police Officers' Retirement Plan (Continued)
Plan Description (Continued)
The Plan provides retirement, disability, and death benefits to Plan members and
beneficiaries. The Plan does not issue a separate financial report.
Deferred Retirement Option Plan
Effective May 5, 1998, subsequent to the approval from the State of Florida, Division of
Retirement, current employees with at least 25 but not more than 30 years of continuous
service as a member of the plan may elect to participate in the deferred retirement option
plan (DROP) for sworn police personnel. The employee may elect to participate in the
plan for a maximum of 60 months before the employee attains 30 years of continuous
service.
A member's continuous service and accrued benefit under the plan shall be determined
and frozen on the effective date of the employee's election to participate in the DROP.
Additional continuous service or benefits under the plan shall not be accrued, except for
cost -of- living adjustments provided to retirees under the plan. No payments are made
directly to the employee from the pension plan while the member participates in the drop
plan.
During the period of the member's participation in the DROP, the employee's normal
retirement benefit shall be credited to the employee's DROP account. No further
contributions to the police officers' retirement system will be required by the Village nor
the employee on behalf of any employee who has elected participation in the DROP.
The member's account is invested as part of the corpus of the system by the Board and is
credited with interest equal to the overall net rate of return on the fund assets during the
reporting period during which the member participates in the DROP.
At the conclusion of the member's participation in the DROP, the member will receive a
normal benefit calculated in accordance with the plan using an average monthly earnings
and continuous service as of the effective date of the member's election to participate in
the DROP. The DROP account is distributed to the member in a cash lump sum, unless
the member alternatively elects to receive payments in approximately equal quarterly or
annual installments over a period designated by the member. If a member dies before
distribution of the member's DROP plan commences, the account balance is paid to the
member's designated beneficiary in an immediate cash lump sum. Provisions of the plan
do not allow for the distribution of a member's DROP account to begin later than April 1
following the later of the calendar year in which the member separates from service with
the Village or attains age 70% years.
At the end of September 30, 2007, total liabilities for the DROP were $111,475.
-45-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 10. PENSION PLANS (Continued)
Method Used to Value Investments (Continued)
b. Police Officers' Retirement Plan (Continued)
Funding Policy
Plan members are required to contribute 9% of their annual covered salary. The State of
Florida contributes a portion of the property insurance premiums, which pass through the
Village as contributions to the Plan. The Village is required to contribute at actuarially
determined rates that are designed to accumulate sufficient assets to pay benefits when
due.
Other
The Police Officers Retirement Plan does not issue separate stand -alone financial
statements, therefore, included below is the Statement of Fiduciary Net Assets and the
Statement of Changes in Net Assets as of and for the fiscal year ended September 30, 2007.
Statement of Fiduciary Net Assets
September 30, 2007
Assets:
Cash and cash equivalents
$ 129,311
Investments, at fair value
12,127,557
Due from state
63,371
Accrued interest receivable
31,858
Total assets
12,352,097
Liabilities
112,839
Net assets held in trust for pension benefits
$12,239,258
Statement of Changes in Net Assets
Year Ended September 30, 2007
ADDITIONS
Contributions
$ 799,684
Net investment income
1,562,601
Other receipts
41,394
Total additions
2,403,679
DEDUCTIONS
Pension benefits
796,095
Other
41,912
Total deductions
838,007
Changes in net assets
1,565,672
Net assets held in trust for pension benefits, beginning
10,673,586
Net assets held in trust for pension benefits, ending
$12,239,258
-46-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 10. PENSION PLANS (Continued)
c. Membership
Membership of each Plan consisted of the following at September 30, 2007:
Retirees and beneficiaries currently receiving benefits and
terminated employees entitled to benefits but not yet receiving them
Fully vested
Non - vested
d. Required Supplementary Information
General
Employees Police
40 21
23 13
56 13
79 26
The schedule of employer contributions for each of the past four consecutive fiscal years for
the Police plan is presented immediately after the notes to the basic financial statements. As
the Plan uses the Frozen Entry Age Actuarial Cost Method, a schedule of funding progress is
not required.
NOTE 11. COMMITMENTS AND CONTINGENCIES
a. Legal Matters
The Village has several claims arising in the ordinary course of operations pending against the
Village. In the opinion of legal counsel and management, any potential losses arising from
such actions, would not have a materially adverse affect on the financial position of the Village.
b. 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.
NOTE 12. SUBSEQUENT EVENTS
a. Local Government Surplus Trust Fund Investment Pool
At September 30, 2007, the Miami Shores Village had $4,845,935 invested in the State Board
of Administration's Local Government Surplus Funds Trust Fund Investment Pool (Pool). On
-47-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. SUBSEQUENT EVENTS (Continued)
a. Local Government Surplus Trust Fund Investment Pool (Continued)
November 29, 2007, the State Board of Administration implemented a temporary freeze on the
assets held in the Pool due to an unprecedented amount of withdrawals from the Fund coupled
with the absence of market liquidity for certain securities within the Pool. The significant
amount of withdrawals followed reports that the Pool held asset - backed commercial paper that
was subject to sub prime mortgage risk. On December 4, 2007, based on recommendations
from an outside financial advisor, the State Board of Administration restructured the Pool into
two separate pools. Pool A consisted of all money market appropriate assets, which was
approximately $12 billion or 86% of Pool assets. Pool B consisted of assets that either
defaulted on a payment, paid more slowly than expected, and/or had any significant credit and
liquidity risk, which was approximately $2 billion or 14% of Pool assets. At the time of the
restructuring, all current pool participants had their existing balances proportionately allocated
into Pool A and Pool B.
Currently, Pool A participants may withdraw 37% of their balance or $4 million, whichever is
greater, without penalty. Withdrawals from Pool A in excess of the above limit are subject to
a 2% redemption fee. New investments in Pool A are not subject to the redemption fee or
withdrawal restrictions. Future withdrawal provisions from Pool A will be subject to further
evaluation based on the maturities of existing investments and the liquidity requirements of the
Pool. On December 21, 2007, Standard and Poor's Ratings Services assigned its "AAAM"
principal stability fund rating to Pool A.
Currently, amounts are transferred by the Trust from Pool B to Pool A as they become
available. As of January 31, 2008 the market value of the assets held in Pool B was $729,541
with an unrealized loss of $33,316.
As of March 31, 2008, the Miami Shores Village had $985,307 and $479,216 invested in Pool
A and B, respectively. Additional information regarding the Local Government Surplus Funds
Trust Fund may be obtained from the State Board of Administration.
b. Property Tax Reform Amendment
On April 10, 2008, the Florida electorate approved an amendment to the Florida Constitution
relative to property taxation. This amendment (referred to as Amendment 1) was placed on the
ballot by the Florida Legislature at a special session held in October 2007. With respect to
homestead property, Amendment 1 increases the current $25,000 homestead exemption by
another $25,000 (for property values between $50,000 - $75,000), except for school district
taxes. Since the new $25,000 homestead exemption does not apply to school district taxes, this
effectively amounts to a $15,000 increase to the existing homestead exemption, resulting in an
estimated annual savings of $240 for an average homeowner. Amendment 1 also allows
property owners to transfer (make portable) up to $500,000 of their Save Our Homes benefits to
their next homestead when they move. Save Our Homes became effective in 1995 and limits
(caps) the annual increase in assessed value for homestead property to three percent (3 %) or the
percentage change in the Consumer Price Index, whichever is less.
-48-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 12. SUBSEQUENT EVENTS (Continued)
b. Property Tax Reform Amendment (Continued)
With respect to non - homestead property, Amendment 1 limits (caps) the annual increase in
assessed value for non - homestead property (businesses, industrial property, rental property,
second homes, etc.) to ten percent (10 %), except for school district taxes. The Amendment also
provides a $25,000 exemption for tangible personal property.
Amendment 1 becomes effective on October 1, 2008, with the exception of the ten percent
(10 %) assessment cap on non - homestead property which becomes effective on January 1, 2009.
Based on information received from the Miami -Dade Property Appraiser's Office, the estimated
annual loss of property tax revenues for our Miami Shores Village from the additional
homestead exemption and the $25,000 exemption for tangible personal property is
approximately $548,527. At present, there is no accurate way to determine the impact of the
portability and assessment cap on non - homestead property provisions in terms of potential loss
of property tax revenues. Estimates for our Miami Shores Village range is approximately 2%
annually which would translate into an additional loss of property tax revenues of
approximately $168,000.
NOTE 13. EFFECT OF NEW PRONOUNCEMENTS
As a result of implementing GASB Statement No. 34, and other subsequent pronouncements, the
Village's ending fund balance at September 30, 2006, was recalculated to derive beginning net
assets, at October 1, 2006, as follows:
Beginning balance as previously reported
Reclassification of remaining note payable
from internal service fund
Reclassification of capital assets
Reclassification of capital assets
Other
Revaluation of infrastructure and other
capital assets
Beginning fund balance /net assets as restated
Fund Financial Statements Government -wide
Fleet
General Maintenance Sanitation Governmental Bus -type
Fund Fund Fund Activities Activities
$ 2,249,538 $ 319 $ 995,795 $ 7,827,026 $1,288,582
984,234 - - - -
- 58,054 - - -
- 71,088 - 71,088
- 18,725 -
- - - 7,110,140 -
$ 3,233,772 $ 58,373 $1,066,883 $14,955,891 $ 1,359,670
-49-
REQUIRED SUPPLEMENTARY INFORMATION
MIAMI SHORES VILLAGE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF EMPLOYER CONTRIBUTIONS
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.
The annual required contribution for the fiscal year ended September 30, 2007 was determined as part of the October 1,
2006 actuarial valuation.
General Employees' Retirement System
General Employees'
Year
Annual Contribution
Valuation date
10/1/06
Ended
Required from
Aggregate
Percentage
September 30,
Contribution Employer
N/A
Contributed
2005
$ 15,845 $ -
Asset valuation method
0.0%
2006
15,845 15,845
100.0%
2007
56,709 -
is recognized at the rate of 20% per
0.0%
Police Officer's Retirement System
Actuarial assumptions:
Year
Annual Contribution
Contribution
8%
Ended
Required from
from
Percentage
September 30,
Contribution Employer
State
Contributed
2005
$ 279,522 $ 249,329
$ 68,063
113.5%
2006
297,812 267,619
63,202
111.1%
2007
594,211 564,018
63,371
105.6%
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.
The annual required contribution for the fiscal year ended September 30, 2007 was determined as part of the October 1,
2006 actuarial valuation.
Note: This method does not separately identify an actuarial accrued liability. Based on this, a schedule of funding
progress is not included as it is not required per GASB 25.
-50-
Police Officer's
General Employees'
Retirement System
Retirement System
Valuation date
10/1/06
10/1/06
Actuarial cost method
Aggregate
Aggregate
Amortization method
N/A
N/A
Remaining amortization period
N/A
N/A
Asset valuation method
5 year smoothed market
Market value less unrecognized capital
appreciation, where capital appreciating
is recognized at the rate of 20% per
year.
Actuarial assumptions:
Investment rate of return*
8%
8%
Projected salary increases*
6.5%
5.5%
Cost of living adjustments
1.5%
*Includes inflation at 4%
*Includes inflation at 4%
*Includes inflation at 4%
Note: This method does not separately identify an actuarial accrued liability. Based on this, a schedule of funding
progress is not included as it is not required per GASB 25.
-50-
MIAMI SHORES VILLAGE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
GENERALFUND
FISCAL YEAR ENDED SEPTEMBER 30, 2007
Charges for services:
Physical environment
72,000
72,000
44,471
Variance with
Police extra duty
168,750
168,750
175,395
Final Budget -
Landscape maintenance
Budgeted Amounts
Actual
Positive
-
Original
Final
Amounts
(Negative)
Revenues:
Total charges for services
978,740
978,740
1,077,259
Taxes:
Rents
25,000
25,000
25,533
Property taxes, current and delinquent
$ 6,650,262
$ 6,650,262
$ 6,676,178
$ 25,916
Licenses and permits:
Total miscellaneous
119,711
119,711
52,150
Business licenses - Village
71,571
71,571
58,269
(13,302)
Business licenses - County
25,000
25,000
4,071
(20,929)
Building permits
511,199
511,199
521,250
10,051
Certificate ofreoccupancy
12,750
12,750
7,606
(5,144)
Other licenses and permits
86,050
86,050
75,432
(10,618)
Total licenses and permits
706,570
706,570
666,628
(39,942)
Intergovernmental revenues:
State shared revenues:
State revenue sharing
324,629
324,629
247,770
(76,859)
Local government half cent sales tax
673,888
673,888
695,151
21,263
Gasoline tax rebate
9,500
9,500
10,434
934
Other
2,350
2,350
1,245
(1,105)
Total intergovernmental revenues
1,010,367
1,010,367
954,600
(55,767)
Charges for services:
Physical environment
72,000
72,000
44,471
(27,529)
Police extra duty
168,750
168,750
175,395
6,645
Landscape maintenance
19,901
19,901
19,901
-
Culture /recreation
718,089
718,089
837,492
119,403
Total charges for services
978,740
978,740
1,077,259
98,519
Fines and forfeitures:
Court fines and costs
75,000
75,000
69,553
(5,447)
School crossing guards
34,000
34,000
26,617
(7,383)
Other
143,000
250,309
200,905
(49,404)
Total fines and forfeitures
252,000
359,309
297,075
(62,234)
Miscellaneous:
Rents
25,000
25,000
25,533
533
Other
94,711
94,711
26,617
(68,094)
Total miscellaneous
119,711
119,711
52,150
(67,561)
Interest
54,000
179,606
199,092
19,486
Total revenues
$ 9,771,650
$ 10,004,565
$ 9,922,982
(Continued)
See note to budgetary comparison schedules.
-51-
MIAMI SHORES VILLAGE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
GENERALFUND
(Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 2007
Expenditures:
Current:
General government:
Village council
Village attorney
Village manager
Village clerk
Code enforcement
Building department
Planning and zoning
Finance
Other
Total general government
Public safety:
Law enforcement
School crossing guard
Total public safety
Public works:
Parks
Street maintenance
Public works administration
Recreation maintenance
Total public services
Culture and recreation:
Recreation
Library
Total culture and recreation
Capital outlay
Total expenditures
Deficiency of revenues over expenditures
Other financing sources (uses)
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 8,818
$ 8,818
$ 5,433 $
3,385
207,920
216,920
137,767
79,153
248,062
248,062
239,734
8,328
169,041
171,162
155,787
15,375
257,157
257,157
143,937
113,220
412,581
412,581
334,779
77,802
334,864
334,864
195,255
139,609
658,389
665,319
468,947
196,372
783,714
1,048,965
837,666
211,299
3,080,546
3,363,848
2,519,305
844,543
4,508,139
4,495,985
4,174,437
321,548
35,954
35,954
28,541
7,413
4,544,093
4,531,939
4,202,978
328,961
574,445
574,445
555,021
19,424
589,481
589,481
557,018
32,463
546,327
549,045
434,973
114,072
200,895
200,895
176,236
24,659
1,911,148
1,913,866
1,723,248
190,618
1,897,888
1,906,642
1,665,340
241,302
341,724
342,804
336,934
5,870
2,239,612
2,249,446
2,002,274
247,172
50,225
82,325
103,033
(20,708)
11,825,624
12,141,424
10,550,838
1,590,586
(2,053,974)
(2,136,859)
(627,856)
1,509,003
Transfers in 2,431,869 3,152,493 2,797,862 (354,631)
Transfers out (377,895) (1,015,634) (1,191,542) (175,908)
Total other financing sources (uses) 2,053,974 2,136,859 1,606,320 (530,539)
Net change in fund balance $ - $ - $ 978,464 $ 978,464
See note to budgetary comparison schedules.
-52-
MIAMI SHORES VILLAGE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
EXCISE TAX FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2007
Revenues:
Public services taxes
Expenditures
Excess of revenues over expenditures
Other financing uses:
Transfers out
Net change in fund balance
Fund balance, beginning
Fund balance, ending
Variance
with
Final
Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 1,806,380 $ 2,414,021 $ 2,209,125 $ (204,896)
1,806,380 2,414,021 2,209,125 (204,896)
(1,806,380) (2,414,021) (2,414,022) (1)
(204,897) (204,897)
- 278,563 278,563
$ 73,666 $ 73,666
See note to budgetary comparison schedules.
-53-
MIAMI SHORES VH,LAGE, FLORIDA
BUDGETARY COMPARISON SCHEDULE
LOCAL OPTION GAS TAX FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2007
See note to budgetary comparison schedules.
-54-
Variance
with
Final
Budget -
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Revenues:
Other taxes
$ 158,540
$ 259,196
$ 365,937
$ 106,741
Interest
5,000
5,000
10,028
5,028
Total revenues
163,540
264,196
375,965
111,769
Expenditures:
Current:
Public works
294,601
279,811
282,761
(2,950)
Debt service:
Principal
20,833
-
-
-
Interest
2,813
-
-
-
Total debt service
23,646
-
-
-
Total expenditures
318,247
279,811
282,761
(2,950)
Excess (deficiency) of revenues
over expenditures
(154,707)
(15,615)
93,204
108,819
Other financing sources (uses):
Transfers out
(25,000)
(167,142)
(167,142)
(334,284)
Net change in fund balance
(179,707)
(182,757)
(73,938)
(225,465)
Fund balance, beginning
-
-
1,041,777
1,041,777
Fund balance, ending
$ (179,707)
$ (182,757)
$ 967,839
$ 816,312
See note to budgetary comparison schedules.
-54-
MIAMI SHORES VILLAGE, FLORIDA
NOTE TO BUDGETARY COMPARISON SCHEDULES
FISCAL YEAR ENDED SEPTEMBER 30, 2007
NOTE 1. BUDGETS AND BUDGETARY ACCOUNTING
Annual budgets are adopted on a basis consistent with accounting principles generally accepted in
the United States. The Village annually adopts an operating budget for the General Fund, Excise
Tax Fund, Local Option Gas Tax Fund, Half Cent Surtax Fund and the Debt Service Fund.
(1) 35 days prior to fiscal year end, the Village Manager submits to the Village Council a
proposed operating budget for the fiscal year commencing the following October 1st. The
operating budget is restricted to proposed expenditures and the means of financing them by
means of appropriated revenues, other financing sources and appropriations of fund balances.
Budgetary control over expenditures for the General Fund is legally maintained at the
departmental level.
(2) Two public hearings are conducted to obtain taxpayer comments as required by Truth in
Millage (TRIM) legislation.
(3) Prior to September 28th (unless preempted by TRIM) as stated in the Village's Charter, the
budget is legally enacted through passage of an ordinance.
(4) The Village Manager may at any time transfer any unencumbered appropriated balance or
portion thereof between general classifications of expenditures within an office, department
or agency. At the request of the Village Manager and within the last three months of the
budget year, the Council may by resolution transfer any unencumbered appropriated balance
or portion thereof, from one office, department or agency to another.
(5) Budgeted amounts are as originally adopted or as amended. No significant revisions to the
budget were required in 2007. There were two supplemental appropriations in the general
fund during fiscal year ended September 30, 2007 for funding outstanding financial
obligations and unanticipated expenses.
(6) Unencumbered appropriations lapse at year end.
-55-
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
General Trust — This fund accumulates assets for its employees, other governmental entities
and/or funds, primarily for the recreation, library or police departments.
Half -Cent Surtax — This fund accounts for the Village's portion of the Miami -Dade County
one -half percent sales surtax approved by voters in November 2002.
Grants — This fund accounts for the use of specific designated resources related to grant
programs.
Hurricane Fund — This fund accounts for hurricane related expenditures as well as FFMA
reimbursements. The fund is used to centralize financial activities required to restore the Village
to normal operations following a natural disaster.
Charter High School — This fund accounts for the initial cost and transactions associated with
the Charter High School.
Law Enforcement Training — This fund accounts for proceeds obtained through fines
designated specifically for training law enforcement officers.
Police Forfeiture — This fund accounts 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.
Debt Service Fund
General Obligation Bonds — This fund accounts for the 1999 and 2004 General Obligation
bonds issued to fund the design, developments and construction of the Miami Shores Aquatic
Facility (1999) and for the charter school construction (2004) and other banking financing.
Capital Projects Funds
Capital Improvement Fund - This fund accounts for major capital acquisitions and projects to
improve the Village.
Aquatic Facility Fund — This fund accounts for all the cost associated with the design,
development and construction of the aquatic facility which was completed in fiscal year 2005
and funded by general obligation bonds issued through the Florida Municipal Loan Council.
Charter High School Construction — This fund accounts for all costs associated with the
construction of the Doctors Charter School of Miami Shores which was substantially complete in
2005.
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Other taxes
Interest
Total revenues
Expenditures:
Current:
Public works
Net change in fund balance
Fund balance, beginning
Fund balance, ending
MIAMI SHORES VILLAGE, FLORIDA
BUDGETARY COMPARISON SCHEDULE
HALF CENT SURTAX FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2007
fSIZ
Budgeted Amounts
Original Final
Variance
with
Final
Budget -
Actual Positive
Amounts (Negative)
$ 440,328 $ 440,328 $ 348,437 $ (91,891)
1,000 1,000 11,169 10,169
441,328 441,328 359,606 (81,722)
745,094 763,339 138,142 625,197
(303,766) (322,011) 221,464 543,475
- - 728,209 728,209
$ (303,766) $ (322,011) $ 949,673 $ 1,271,684
MIAMI SHORES VILLAGE, FLORIDA
BUDGETARY COMPARISON SCHEDULE
DEBT SERVICE FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2007
Revenues:
Property taxes
Interest
Total revenues
Expenditures:
Current:
General government
Debt service:
Principal
Interest
Total debt service
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance, beginning
Variance
with
Final
Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 671,446 $ 671,446 $ 697,306 $ 25,860
- - 22,439 22,439
671,446 671,446 719,745 48,299
23,710
23,710
4,190
19,520
175,000
400,017
399,008
1,009
347,736
503,047
507,244
(4,197)
522,736
903,064
906,252
(3,188)
546,446
926,774
910,442
16,332
125,000 (255,328) (190,697) 64,631
- 380,328 380,328 -
(125,000) (125,000) - 125,000
(125,000) 255,328 380,328 125,000
- - 189,631 189,631
- 514,160 514,160
Fund balance, ending $ - $ - $ 703,791 $ 703,791
-61-
INTERNAL SERVICE FUNDS
Internal service funds are 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.
Risk Management Fund — This fund accounts for the accumulation and allocation of costs
associated with insurance.
Fleet Maintenance Fund — This fund accounts for all direct and indirect costs to maintain and
operate the Village's vehicles and equipment fleet.
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2007
ASSETS
Current assets:
Cash and cash equivalents
Accounts receivable
Prepaid items
Inventories
Total current assets
Capital assets:
Capital assets not being depreciated
Capital assets being depreciated, net
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities
Compensated absences
Claims payable
Total current liabilities
Noncurrent liabilities:
Compensated absences
Total liabilities
XTUc P n CCUrPr
Invested in capital assets, net of related debt
Unrestricted
Total net assets
-62-
Risk Fleet
Mana ement Maintenance Total
$ 223,909 $ 190,802 $ 414,711
3,205 - 3,205
- 5,000 5,000
- 41,636 41,636
227,114 237,438 464,552
- 7,127
7,127
- 354,222
354,222
- 361,349
361,349
227,114 598,787
825,901
10,819 17,166 27,985
- 10,776 10,776
216,295 - 216,295
227,114 27,942 255,056
- 32,329 32,329
227,114 60,271 287,385
361,349 361,349
- 177,167 177,167
$ - $ 538,516 $ 538,516
ML4MI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
INTERNAL SERVICE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2007
Risk Fleet
Management Maintenance
Fund Fund Total
Charges for services $ 903,135 $ 1,172,789 $ 2,075,924
Operating expenses:
Administrative and general
131,243
399,739
530,982
Personnel expenses
-
254,448
254,448
Depreciation
-
153,913
153,913
Insurance premiums
816,011
165,171
981,182
Insurance claims
139,129
-
139,129
Total operating expenses
1,086,383
973,271
2,059,654
Operating income (loss)
(183,248)
199,518
16,270
Non - operating income:
Gain on sale of capital assets
-
2,269
2,269
Interest income
23,760
24,732
48,492
Total non - operating income
23,760
27,001
50,761
Income (loss) before transfers
(159,488)
226,519
67,031
Transfers in
157,870
253,623
411,493
Change in net assets
(1,618)
480,142
478,524
Net assets, beginning, as restated
1,618
58,374
59,992
Net assets, ending
$ - $
538,516
$ 538,516
W11
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2007
Cash flows from operating activities:
Cash received from customers, governments
and other funds
Cash paid to suppliers
Cash paid to employees
Net cash used by operating activities
Cash flows from noncapital financing activities:
Transfers in
Cash flows from capital and related financing activities:
Principal paid on capital debt
Proceeds from sale of capital assets
Acquisition of capital assets
Net cash used by capital and related financing
Cash flows from investing activities:
Interest received
Net decrease in cash and cash equivalents
Cash and cash equivalents, beginning
Cash and cash equivalents, ending
Reconciliation of operating loss to net cash
provided (used) by operating activities:
Operating income (loss)
Adjustments to reconcile operating loss to net cash
provided (used) by operating activities:
Depreciation
Changes in operating assets and liabilities:
Accounts receivable
Due from other funds
Inventories
Accounts payable and accrued liabilities
Due to other funds
Compensated absences
Net cash used by operating activities
lfZl!
Risk
Fleet
Management
Maintenance
Fund
Fund Total
$ 903,094 $ 1,383,083 $ 2,286,177
(1,728,220) (1,838,919) (3,567,139)
(250,672) (250,672)
(825,126) (706,508) (1,531,634)
157,870 253,623 411,493
- (984,234)
(984,234)
- 6,846
6,846
- (208,167)
(208,167)
- (1,185,555)
(1,185,555)
23,760 24,732
48,492
(643,496) (1,613,708) (2,257,204)
867,405 1,804,510 2,671,915
$ 223,909 $ 190,802 $ 414,711
$ (183,248) $ 199,518 $ 16,270
153,913 153,913
(41) 49 8
- 210,245 210,245
(35) (35)
(19,300) (12,845) (32,145)
(622,537) (1,261,129) (1,883,666)
- 3,776 3,776
$ (825,126) $ (706,508) $ (1,531,634)
FIDUCIARY FUNDS
These funds account for assets held by the Village in a trustee capacity or as an agent for
employees.
Pension Trust Funds:
Police Officers Retirement System — To account for the accumulation of resources for
pension benefit payments to police officers who have retired from Miami Shores Village.
General Employees Retirement System — To account for the accumulation of resources for
pension benefit payments to employees, other than police, who have retired from Miami
Shores Village.
Private Purpose Trust:
The fund was established to account for a donation received from a foundation to be held
by the Village to be used for the Doctors Charter School operations.
Agency Fund:
Police Insurance Trust Fund — To accumulate resources on behalf of police personnel to
partially cover retirement health insurance.
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
SEPTEMBER 30, 2007
ASSETS
Cash and cash equivalents
Investments:
Common stocks
Corporate bonds
Municipal bonds
U.S. obligations
U.S. Federal agencies
Due from State of Florida
Accrued interest receivable
Total assets
LIABILITIES AND NET ASSETS
Liabilities:
Other liabilities
DROP liability
Total liabilities
Net assets held in trust for pension benefits
-65-
General
Police Employees
Pension Pension
Trust Trust Total
$ 129,311 $ 113,202 $ 242,513
9,331,328
7,453,507
16,784,835
1,040,078
549,727
1,589,805
-
458,898
458,898
1,745,557
822,637
2,568,194
10,594
2,029
12,623
63,371
-
63,371
31,858
25,116
56,974
12,352,097
9,425,116
21,777,213
1,364 -
1,364
111,475 20,595
132,070
112,839 20,595
133,434
$ 12,239,258 $ 9,404,521 $ 21,643,779
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2007
ADDITIONS
Contributions:
City
Employees
State
Other receipts
Total contributions
Investment income:
Net appreciation in fair value of investments
Interest
Dividends
Less investment expenses
Net investment income
Total additions
DEDUCTIONS
Pension benefits
Refunds
Professional services
Total deductions
Change in net assets
Net assets held in trust for pension benefits, beginning
Net assets held in trust for pension benefits, ending
'�
General
Police Employees
Pension Pension
Fund Fund Total
$ 564,018 $
72,554 $
636,572
172,295
173,043
345,338
63,371
-
63,371
41,394
36,321
77,715
841,078
281,918
1,122,996
1,221,433
976,638
2,198,071
228,061
162,452
390,513
113,187
89,614
202,801
(80)
(31,317)
(31,397)
1,562,601
1,197,387
2,759,988
2,403,679
1,479,305
3,882,984
796,095
-
796,095
-
358,116
358,116
41,912
-
41,912
838,007
358,116
1,196,123
1,565,672 1,121,189 2,686,861
10,673,586 8,283,332 18,956,918
$ 12,239,258 $ 9,404,521 $ 21,643,779
Cash held with trustee
LIABILITIES
Deposits held in trust
MUM SHORES VILLAGE, FLORA
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2007
Police Insurance Trust Amy Fund
Balance Balance
September 30, September 30,
2006 Additions Deductions 2007
$ 108,665 $ 10,050 $ - $ 118,715
$ 108,665 $ 10,050 $
-67-
- $ 118,715
STATISTICAL SECTION
MIAMI SHORES VILLAGE, FLORIDA
NET ASSETS BY COMPONENT
FOR THE LAST FOUR FISCAL YEARS
Business -type activities:
Invested in capital assets, net of related debt 770,301 748,120 704,574 1,036,842
Restricted - - - -
Unrestricted 625,851 540,462 520,859 (95,782)
Total business -type activities net assets 1,396,152 1,288,582 1,225,433 941,060
Primary government:
Invested in capital assets, net of related debt
10,163,439
Fiscal Year
5,030,397
3,092,567
2007
2006
2005
2004
Governmental activities:
Unrestricted
5,132,805
(113,069)
(1,339,269)
Invested in capital assets, net of related debt
$ 9,393,138
$4,993,244
$4,325,823
$2,055,725
Restricted
3,345,154
3,487,313
3,627,263
6,896,234
Unrestricted
4,506,954
(653,531)
(1,860,128)
(4,888,241)
Total governmental activities net assets
17,245,246
7,827,026
6,092,958
4,063,718
Business -type activities:
Invested in capital assets, net of related debt 770,301 748,120 704,574 1,036,842
Restricted - - - -
Unrestricted 625,851 540,462 520,859 (95,782)
Total business -type activities net assets 1,396,152 1,288,582 1,225,433 941,060
Primary government:
Invested in capital assets, net of related debt
10,163,439
5,741,364
5,030,397
3,092,567
Restricted
3,345,154
3,487,313
3,627,263
6,896,234
Unrestricted
5,132,805
(113,069)
(1,339,269)
(4,984,023)
Total primary government net assets
$18,641,398
$ 9,115,608
$ 7,318,391
$ 5,004,778
-68-
MIAMI SHORES VILLAGE, FLORIDA
CHANGES IN NET ASSETS
FOR THE LAST FOUR FISCAL YEARS
Business -type activities:
Sanitation
2,328,930
Fiscal Year
2,201,480
1,486,983
2007
2006
2005
2004
Expense:
Total business -type activities expenses
2,479,713
2,386,914
2,334,876
Governmental activities:
Total primary government expenses
14,924,270
16,018,946
14,806,408
General government
$ 2,941,291
$ 4,509,714
$ 3,330,873
$ 3,517,307
Public safety
4,451,336
4,166,932
4,144,837
3,699,805
Public works
2,357,012
2,232,714
2,133,108
1,409,982
Culture and recreation
2,190,507
2,273,686
2,317,936
2,488,378
Interest on debt
504,411
448,986
544,778
186,174
Total governmental activities expenses
12,444,557
13,632,032
12,471,532
11,301,646
Business -type activities:
Sanitation
2,328,930
2,274,983
2,201,480
1,486,983
Stormwater
150,783
111,931
133,396
149,011
Total business -type activities expenses
2,479,713
2,386,914
2,334,876
1,635,994
Total primary government expenses
14,924,270
16,018,946
14,806,408
12,937,640
Program revenues:
Governmental activities:
Charges for services:
General government
119,903
169,058
1,655,350
1,305,450
Public safety
472,470
377,470
274,322
253,121
Public works
611,097
674,852
285,611
-
Culture and recreation
837,492
759,962
-
-
Operating grants and contributions
-
1,900,256
697,160
89,545
Capital grants and contributions
-
188,709
2,111,291
-
Total governmental activities program revenues
2,040,962
4,070,307
5,023,734
1,648,116
Business -type activities:
Charges for services:
Sanitation
2,508,236
2,538,269
2,666,340
1,844,807
Stormwater
195,582
189,428
209,852
165,094
Total business -type activities program revenues
2,703,818
2,727,697
2,876,192
2,009,901
Total primary government program revenue
$ 4,744,780
$ 6,798,004
$ 7,899,926
$ 3,658,017
(Continued)
-69-
MIAMI SHORES VILLAGE, FLORIDA
CHANGES IN NET ASSETS
(Continued)
FOR THE LAST FOUR FISCAL YEARS
Net (expenses) revenue:
Governmental activities
Business -type activities
General revenues and other changes in net assets:
Governmental activities:
Property taxes
Public services tax
Intergovernmental
Investment earnings
Miscellaneous
Interest earning - unrestricted
Gain on sale of capital assets
Transfers
Total governmental activities
Business -type activities:
Investment earnings
Other general revenues
Transfers
Total business -type activities
Total primary government
Fiscal Year
2007 2006 2005 2004
$(10,150,679) $(9,561,725) $(7,447,798) $(9,653,530)
224,105 340,783 541,316 373,907
(9,926,574) (9,220,942) (6,906,482) (9,279,623)
7,373,484
6,260,392
5,372,790
5,398,417
2,209,125
2,849,982
2,145,784
1,213,775
714,374
1,059,067
1,169,950
1,442,274
954,600
504,743
189,699
284,224
577,719
311,601
240,976
43,363
398,463
-
-
-
2,269
-
-
-
210,000
310,000
210,000
195,834
12,440,034
11,295,785
9,329,199
8,577,887
22,377 6,868 8,427 1,477
- 25,500 66,615 -
(210,000) (310,000) (210,000) (195,834)
(187,623) (277,632) (134,958) (194,357)
12,252,411 11,018,153 9,194,241 8,383,530
Change in net assets:
Governmental activities 2,289,355 1,734,060 1,881,401 (1,075,643)
Business -type activities 36,482 63,151 406,358 179,550
Total primary government $ 2,325,837 $ 1,797,211 $ 2,287,759 $ (896,093)
-70-
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MIANH SHORES VH.LAGE, FLORIDA
ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY
FOR THE LAST TEN FISCAL YEARS
Fiscal
Year
Total
Total
Ended
Residential
Personal
Centrally
Assessed
Direct Tax
September 30,
Pro e
Pro e
Assessed
Value
Rate
1998
$ 339,811,280
$14,305,633
$ 670,956
$ 354,787,869
9.514
1999
352,803,811
14,849,506
862,792
368,516,109
9.577
2000
367,730,418
17,216,418
854,252
385,801,088
9.347
2001
390,040,958
16,975,407
894,140
407,910,505
8.878
2002
415,393,620
17,399,792
903,081
433,696,493
8.878
2003
462,954,450
18,854,983
946,240
482,755,673
8.265
2004
516,425,642
20,389,383
944,009
537,759,034
8.265
2005
572,491,450
23,151,545
1,078,390
596,721,385
9.375
2006
686,912,201
23,406,085
1,233,756
711,552,042
9.180
2007
810,656,588
22,876,703
1,319,888
834,853,179
9.106
Source: Miami -Dade County Property Appraisal Office.
-73-
MIAMI SI3ORES VILLAGE, FLORIDA
DIRECT AND OVERLAPPING PROPERTY TAX RATES
FOR THE LAST TEN FISCAL YEARS
(Rate per $1,000 of Assessed Value)
Fiscal
Year
Debt
Total
Ended
Operating
Service
City
County -
September 30,
Millage
Millage
Millage
Wide
Fire
Library
School
State
Total
1998
8.740
0.774
9.514
6.469
2.745
0.339
10.366
0.710
30.143
1999
8.740
0.837
9.577
6.023
2.869
0.334
10.260
0.644
29.707
2000
8.740
0.607
9.347
0.000
2.752
0.000
9.744
0.641
22.484
2001
8.363
0.515
8.878
6.403
2.752
0.000
9.617
0.738
28.388
2002
8.363
0.515
8.878
6.403
2.752
0.000
9.617
0.738
28.388
2003
7.750
0.515
8.265
6.279
2.661
0.000
9.252
0.736
27.193
2004
7.750
0.515
8.265
6.382
2.337
0.000
9.715
0.816
27.515
2005
8.250
1.125
9.375
6.664
2.661
0.000
8.787
0.636
28.123
2006
8.250
0.930
9.180
6.549
2.661
0.000
8.438
0.736
27.564
2007
8.250
0.856
9.106
6.322
2.651
0.000
8.105
0.736
26.920
-74-
MIAMI SHORES VILLAGE, FLORIDA
PRINCIPAL PROPERTY TAX PAYERS
CURRENT YEAR AND TEN YEARS AGO
Source: Miami -Dade County Property Appraiser Office
-75-
2007
1998
Percentage
Percentage
Taxable
of Total City
Taxable
of Total City
Assessed
Taxable
Assessed
Taxable
Taxpayer
Value
Rank
Value
Value
Rank
Value
City National Bank of Florida
$ 9,549,295
1
1.14%
$ 2,900,000
2
0.85%
Northern Trust Bank
9,476,894
2
1.14%
1,267,122
7
0.37%
Tropical Chevrolet, Inc.
7,882,930
3
0.94%
2,691,619
3
0.79%
Ramiro del Amo
4,092,204
4
0.49%
-
0.00%
Camp Biscayne at the Grove
3,591,813
5
0.43%
-
0.00%
First States Investors 5200 LLC
3,476,967
6
0.42%
-
0.00%
Shores at Biscayne, LLC
3,319,330
7
0.40%
-
0.00%
Bujolo, Inc.
2,921,115
8
0.35%
-
0.00%
Robert Ader
2,3 83,125
9
0.29%
-
0.00%
Thomas & Sandra K Chaille
2,265,811
10
0.27%
-
0.00%
Boris Moroz & Phil Glassman
-
0.00%
3,078,771
1
0.90%
Henry Everett
-
0.00%
1,362,220
4
0.40%
Bennett Electric /George Bennett
-
0.00%
1,360,301
5
0.40%
Sheila McDonald
-
0.00%
1,316,055
6
0.38%
Ben Pumo
-
0.00%
1,124,827
8
0.33%
Konover Properties, Inc.
-
0.00%
1,022,950
9
0.30%
Total
$48,959,484
5.86%
$16,123,865
4.71%
Source: Miami -Dade County Property Appraiser Office
-75-
Fiscal
Year Total Levied
Ended
for the
September 30,
Fiscal Year
Amount
of Levy
1998
$ 2,986,804
1999
3,096,789
2000
3,100,630
2001
3,277,996
2002
3,507,040
2003
3,750,982
2004
4,183,498
2005
4,922,951
2006
5,870,304
2007
6,887,539
MIAMI SHORES VILLAGE, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
FOR THE LAST TEN FISCAL YEARS
Collected within the
Fiscal Year of the Levy
Percentage
Amount
of Levy
$2,985,026
99.9%
3,044,701
98.3%
3,051,598
98.4%
2,999,496
91.5%
3,298,492
94.1%
3,390,090
90.4%
3,871,322
92.5%
4,525,683
91.9%
5,441,607
92.7%
6,571,642
95.4%
Collections
in Subsequent
Years
$ 47,634
27,443
40,506
153,480
105,618
121,978
171,334
198,280
184,415
104,536
Total collections to Date
Amount
$ 3,032,660
3,072,144
3,092,104
3,152,976
3,404,110
3,512,068
4,042,656
4,723,963
5,626,022
6,676,178
Percentage
of Lew
101.5%
99.2%
99.7%
96.2%
97.1%
93.6%
96.6%
96.0%
95.8%
96.9%
Source: Miami Shores Village Finance Department and Miami -Dade County Property Appraisers Office.
-76-
MIAMI SHORES VILLAGE, FLORIDA
RATIOS OF OUTSTANDING DEBT BY TYPE
FOR THE LAST TEN FISCAL YEARS
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
-77-
Governmental Activities
Percentage
Fiscal
of Actual
Year
General
Taxable
Ended
Obligation
Loan
Value of
Per
September 30,
Bonds
Payable
Total
Pro e
Capita
1998
$ -
$ 640,000
$ 640,000
-
-
1999
3,200,000
745,276
3,945,276
1.07
389
2000
3,145,000
635,234
3,780,234
-
373
2001
3,090,000
531,751
3,621,751
-
358
2002
3,030,000
438,202
3,468,202
-
334
2003
2,970,000
1,680,000
4,650,000
0.96
448
2004
7,910,000
1,485,868
9,395,868
1.75
905
2005
7,750,000
1,405,069
9,155,069
-
882
2006
7,585,000
3,444,879
11,029,879
1.57
1,054
2007
7,415,000
3,215,811
10,630,811
1.51
1,024
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
-77-
MIAMI SHORES VILLAGE, FLORIDA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
Governmental Unit
Overlapping debt:
Miami -Dade County, Florida
Miami -Dade County Public Schools
Total overlapping debt
Miami Shores Village
Total direct and overlapping debt
AS OF SEPTEMBER 30, 2007
Percentage Amount
Debt Applicable Applicable
Outstanding To Ci To Ci
(1) $ 507,316 0.41 $ 208,000
(2) 903,577 0.37 334,323
542,323
7,415,000
$ 7,957,323
Sources:
(1) Miami -Dade County, Finance Department - Bond Administration Division
(2) The School Board of Miami -Dade County - Office of the Controller
-78-
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MIAMI SHORES VILLAGE, FLORIDA
DEMOGRAPHIC AND ECONOMIC STATISTICS
FOR THE LAST TEN CALENDAR YEARS
Sources:
(1) Miami Shores Chamber of Commerce
(2) Population and per capita income - Miami -Dade County Department of Planning and Zoning
(3) Florida Research and Economic Database - Miami -Dade County
(4) Miami -Dade County Finance Department
-80-
Personal
Per
Income
Capita
Estimated
(Thousand of
Personal
Unemployment
Year
Population (1)
Dollars) (2)
Income 3
Rate 4
1998
10,142
$50,836,516
$ 23,216
7.0%
1999
10,139
53,430,202
24,050
5.9%
2000
10,129
57,747,807
25,626
5.1%
2001
10,130
60,302,455
26,410
6.0%
2002
10,380
62,440,704
26,995
6.6%
2003
10,385
64,643,197
27,593
6.0%
2004
10,385
68,582,602
29,076
5.6%
2005
10,380
53,420,363
21,922
5.1%
2006
10,462
55,186,474
22,393
4.5%
2007
10,380
57,649,694
23,299
4.1%
Sources:
(1) Miami Shores Chamber of Commerce
(2) Population and per capita income - Miami -Dade County Department of Planning and Zoning
(3) Florida Research and Economic Database - Miami -Dade County
(4) Miami -Dade County Finance Department
-80-
MIAMI SHORES VILLAGE, FLORIDA
PRINCIPAL EMPLOYERS LOCATED IN MIAMI -DADE COUNTY
CURRENT YEAR AND TEN YEARS AGO
Source: Miami -Dade Finance Department
-81-
2007
1998
Percentage
Percentage
of Total City
of Total City
Employer
Employees
Rank
Employment
Employees
Rank
Employment
Miami -Dade County Public Schools
50,000
1
4.17%
43,498
1
3.95%
Miami -Dade County, Florida
32,000
2
2.67%
20,000
2
1.81%
Federal Government
20,400
3
1.70%
17,600
4
1.60%
Florida State Government
17,000
4
1.42%
17,700
3
1.60%
Baptist Health Systems of South FL
11,257
5
0.94%
5,285
9
0.48%
Publix Super Markets
11,000
6
0.92%
-
-
0.00%
University of Miami
10,170
7
0.85%
7,574
6
0.69%
Jackson Health System
10,000
8
0.83%
7,216
7
0.65%
University of Miami
9,367
7
0.80%
7,574
6
0.75%
American Airlines
9,000
9
0.75%
9,304
5
0.89%
United Parcel Service
6,123
10
0.51%
-
-
0.00%
Miami -Dade Community College
-
5,700
8
0.52%
BellSouth Telecommunications, Inc
-
5,200
10
0.47%
Source: Miami -Dade Finance Department
-81-
MIAMI SHORES VILLAGE, FLORIDA
VILLAGE EMPLOYEES BY FUNCTION /PROGRAM
LAST TEN FISCAL YEARS
Source: City Finance office
-82-
Fiscal Year
Function/Program
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
General government:
Administration:
Full time
10
11
10
-
10
11
9
8
9
11
Part time
-
-
-
-
-
-
1
2
1
3
Finance:
Full time
4
5
5
5
5
5
4
4
4
4
Part time
I
1
1
1
1
I
1
1
2
1
Public works:
Full time
60
66
55
54
53
55
50
46
41
44
Part time
2
2
2
2
2
2
2
2
3
4
Culture and recreation:
Recreation:
Full time
12
12
12
12
12
12
12
13
11
12
Part time
64
64
64
64
64
64
86
70
69
82
Library:
Full time
3
4
4
4
4
4
7
4
4
4
Part time
7
6
7
7
7
6
6
6
6
5
Public safety
Police
Full time
47
47
44
44
44
35
42
41
44
41
Part time
5
5
5
4
4
5
4
3
3
3
Total
215
223
209
197
206
200
224
200
197
214
Source: City Finance office
-82-
COMPLIANCE SECTION
Rachlin
accountants - advisors
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Honorable Mayor, Village Council and Village Manager
Miami Shores Village, Florida
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of Miami Shores Village,
Florida (the Village), as of and for the year ended September 30, 2007, which collectively comprise the
Village's basic financial statements as listed in the table of contents. These financial statements are the
responsibility of the Village's management. Our responsibility is to express opinions on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States and
the standards applicable to financial audits contained in Government Audit 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 consideration of internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the Village's internal control over financial reporting. Accordingly, we express no
such opinion. 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 opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major fund,
and the aggregate remaining fund information of the Village, as of September 30, 2007, and the
respective changes in financial position and cash flows, where applicable, thereof for the year then ended
in conformity with accounting principles generally accepted in the United States.
In accordance with Government Auditing Standards, we have also issued our report dated April 10, 2008
on our consideration of the Village's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be read in conjunction with this report in
considering the results of our audit.
-1-
M E N
Rachlin LLP ■ One Southeast Third Avenue ■ Tenth Floor ■ Miami, Florida 33131 ■ Phone 305.377.4228 ■ Fax 305.377.8331 ■ www.rachlin.com
An Independent Member of Baker Tilly International
M I A M I ■ F 0 R T L A U D E R D A L E ■ W E S T P A L M B E A C H
Honorable Mayor, Village Council and Village Manager
Miami Shores Village, Florida
Page Two
Management's Discussion and Analysis and the required supplementary information on pages 3 to 12 and
50 to 55, respectively are not a required part of the basic financial statements, but are supplementary
information required by accounting principles generally accepted in the United States. 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 express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Village's basic financial statements. The introductory section, combining and individual
fund financial statements and schedules and statistical section are presented for purposes of additional
analysis and are not a required part of the basic financial statements. The accompanying schedule of
expenditures of federal awards in presented for purposes of additional analysis as required by the United
States Office of Management and Budget Circular A -133, Audits of States, Local Governments and Non -
Profit Organizations, and is also not a required part of the basic financial statements of the Village. The
combining and individual fund financial statements and schedules and the schedule of expenditures of
federal awards have been subjected to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial
statements taken as a whole. The introductory and statistical sections have not been subjected to the
auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no
opinion thereon.
12, W". � /, k, 0
Miami, Florida
April 10, 2008
-2-
Rachlin
accountants • advisors
Rachlin
accountants - advisors
Report of Independent Certified Public Accountants on Internal Control over
Financial Reporting and on Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance with Government Auditing Standards
Honorable Mayor, Village Council and Village Manager
Miami Shores Village, Florida
We have audited the financial statements of the governmental activities, the business -type activities and
each major fund and the aggregate remaining fund information of the Miami Shores Village, Florida (the
Village), as of and for the year ended September 30, 2007, which collectively comprise the Village's
basic financial statements, and have issued our report thereon dated April 10, 2008. We conducted our
audit in accordance with auditing standards generally accepted in the United States and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States.
Internal Control over Financial Reporting
In planning and performing our audit, we considered the Village's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Village's
internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness
of the Village's internal control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of
control deficiencies, that adversely affects the Village's ability to initiate, authorize, record, process, or
report financial data reliably in accordance with generally accepted accounting principles such that there
is more than a remote likelihood that a misstatement of the Village's financial statements that is more
than inconsequential will not be prevented or detected by the Village's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
more than a remote likelihood that a material misstatement of the financial statements will not be
prevented or detected by the Village's internal control.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and would not necessarily identify all deficiencies in internal control that
might be significant deficiencies and, accordingly, would not necessarily disclose all significant
deficiencies that are also considered to be material weaknesses. We did not identify any deficiencies in
internal control over financial reporting that we consider to be material weaknesses as defined above.
-83-
MEN
Rachlin LLP ■ One Southeast Third Avenue ■ Tenth Floor ■ Miami, Florida 33131 ■ Phone 305.377.4228 ■ Fax 305.377.8331 ■ www.rachlin.com
An Independent Member of Baker Tilly International
M I A M I ■ F 0 R T L A U D E R D A L E ■ W E S T P A L M B E A C H
Honorable Mayor, Village Council and Village Manager
Miami Shores Village, Florida
Page Two
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Miami Shores Village's financial statements
are free of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements, noncompliance with which could have a direct and material
effect on the 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 or other maters that are
required to be reported under Government Auditing Standards.
This report is intended solely for the information and use of the Mayor, Village Council, management and
regulatory agencies and pass - through entities and is not intended to be and should not be used by anyone
other than these specified parties.
4eoal�- /—,L 00
Miami, Florida
April 10, 2008
-84-
Rachlin
accountants- advisors
Rachlin
accountants• advisors
ManaLFement 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 basic financial statements of the Miami Shores Village, Florida (the Village) as of
and for the year ended September 30, 2007, and have issued our report thereon dated April 10, 2008.
We conducted our audit in accordance with auditing standards generally accepted in the United States; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. We have issued our Report of Independent Certified Public
Accountants on Internal Control over Financial Reporting and on Compliance and Other Matters.
Disclosures in that report, which is dated April 10, 2008, should be considered in conjunction with this
management letter.
Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the
Auditor General, which govern the conduct of local governmental entity audits performed in the State of
Florida and, unless otherwise required to be reported in the report on compliance and internal controls or
schedule of findings and questioned costs, this letter is required to include the following information.
➢ Section 10.554(1)(i)l., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address significant findings and recommendations made in the
preceding annual financial audit report. Corrective actions have been taken to address the findings
made in the preceding annual financial audit report.
➢ Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of the
provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In
connection with our audit, we determined that the Village complied with Section 218.415, Florida
Statutes.
➢ Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management
letter any recommendations to improve financial management, accounting procedures, and internal
controls. In connection with our audit, findings and recommendations are incorporated in
accompanying Schedule of Findings and Responses.
➢ Section 10.554(1(i)4., Rules of the Auditor General, requires that we address violations of
provisions of contracts and grant agreements or abuse that have an effect on the financial
statements that is less than material but more than inconsequential. In connection with our audit, we
did not have any such findings.
1f;3.
MEN
Rachlin LLP ■ One Southeast Third Avenue ■ Tenth Floor ■ Miami, Florida 33131 ■ Phone 305.377.4228 ■ Fax 305.377.8331 ■ www.rachlin.com
An Independent Member of Baker Tilly International
M I A M I ■ F 0 R T L A U D E R D A L E ■ W E S T P A L M B E A C H
Honorable Mayor, Village Council and Village Manager
Miami Shores Village, Florida
Page Two
➢ Section 10.554(1)(i)5., Rules of the Auditor General, requires based on professional judgment, the
reporting of the following matters that are inconsequential to the financial statements, considering
both quantitative and qualitative factors: (1) violations of laws, rules, regulations, and contractual
provisions or abuse that have occurred, or were likely to have occurred, and would have an
immaterial effect on the financial statements; (2) improper expenditures or illegal acts that would
have an immaterial effect on the financial statements; and (3) control deficiencies that are not
significant deficiencies, including, but not limited to; (a) improper or inadequate accounting
procedures (e.g., the omission of required disclosures from the financial statements); (b) failures to
properly record financial transactions; and (c) other inaccuracies, shortages, defalcations, and
instances of fraud discovered by, or that come to the attention of, the auditor. In connection with
our audit, we did not have any such findings.
➢ Section 10.554(1)(i)6., Rules of the Auditor General, requires that the name or official title and
legal authority for the primary government and each component unit of the reporting entity be
disclosed in this management letter, unless disclosed in the notes to the financial statements. This
is disclosed in the notes to the basic financial statements. There are no component units related to
the Village.
➢ Section 10.554(1)(i)7.a., Rules of the Auditor General, requires a statement be included as to
whether or not the local governmental entity has met one or more of the conditions described in
Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In
connection with our audit, we determined that the Village did not meet any of the conditions
described in Section 218.503(1), Florida Statutes.
➢ Section 10.554(1)(i)7.b., Rules of the Auditor General, requires that we determine whether the
annual financial report for the Village for the fiscal year ended September 30, 2007, filed with the
Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in
agreement with the annual financial audit report for the fiscal year ended September 30, 2007. In
connection with our audit, we determined that these two reports were in agreement.
➢ Section 10.554(1)(i)7.c. and 10.556(7), Rules of the Auditor General, require that we apply
financial condition assessment procedures. In connection with our audit, we applied financial
condition assessment procedures. It is management's responsibility to monitor the entity's financial
condition, and our financial condition assessment was based in part on representations made by
management and the review of financial information provided by same.
This management letter is intended solely for the information of the Mayor, Village Council,
management, and the State of Florida Office of the Auditor General, and is not intended to be and should
not be used by anyone other than these specified parties.
Miami, Florida
April 10, 2008
-86-
Rachlin
aonountants• advisors
MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS AND RESPONSES
SEPTEMBER 30, 2007
SECTION I — SUMMARY OF AUDITOR'S RESULTS
Financial Statements
Unqualified Opinion
Type of auditor's report issued:
Internal control over financial reporting:
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified not considered to be
material weakness? Yes X None reported
Non - compliance material to financial statements noted? Yes X No
SECTION H — FINANCIAL STATEMENT FINDINGS
06 -01 Excess of Expenditures Over Appropriations
Finding
Pursuant to Section 166.241 (2) of Chapter 166 of the Florida Statutes, the governing body of each
municipality shall adopt a budget each fiscal year. The budget must be adopted by ordinance or
resolution unless otherwise specified in the respective municipality's charter. The amount available from
taxation and other sources, including amounts carried over from prior fiscal years, must equal the total
appropriations for expenditures and reserves. The budget must regulate expenditures of the municipality,
and it is unlawful for any officer of a municipal government to expend or contract for expenditures in any
fiscal year except in pursuance of budgeted appropriations. We noted that various categories of
expenditures in the General Fund and Local Option Gas Tax Fund.
Recommendation
Section 166.241(3)a of the Florida Statutes provides the authority for the governing body of the Village to
increase and decrease appropriations within each fund. We suggest that, in the future, all budgets be
monitored to ensure compliance with Florida Statutes.
View of Responsible Officials and Corrective Action
Budget amendments were addressed at the department level. Any overruns were due to the nature of
account type. In the future, the budget will be monitored at the account level in order to remain within
budgetary restraints.
SECTION III — FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
None noted.
-87-
MIAMI SHORES VILLAGE, FLORIDA
SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS
FISCAL YEAR ENDED SEPTEMBER 30, 2007
I. PRIOR YEAR FINANCIAL STATEMENT FINDINGS
None.
H. PRIOR YEAR FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS
No findings in the prior year.
-88-