2009
MIAMI SHORES VILLAGE, FLORIDA
BASIC FINANCIAL STATEMENTS
FOR THE
FISCAL YEAR ENDED SEPTEMBER 30, 2009
MIAMI SHORES VILLAGE, FLORIDA
TABLE OF CONTENTS
Page
Independent Auditors’ Report 1-2
Managements’ Discussion and Analysis (Required Supplementary Information) 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
Reconciliation of the Balance Sheet to the Statement of Net Assets-Governmental Funds 16
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds 17
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities 18
Statement of Net Assets – Proprietary Funds 19
Statement of Revenues, Expenses, and Changes in Fund Net Assets –
Proprietary Funds 20
Statement of Cash Flows – Proprietary Funds 21
Statement of Fiduciary Net Assets- Fiduciary Funds 22
Statement of Changes in Fiduciary Net Assets 23
Notes to Financial Statements 24-46
Required Supplementary Information:
Budgetary Comparison Schedule:
General Fund 47-48
Excise Tax Fund 49
Notes to Budgetary Comparison Schedule 50
Schedule of Funding Progress 51
Schedule of Employer Contributions 52
Combining and Individual Financial Statementsand Schedules:
Combining Balance Sheet – Nonmajor Governmental Funds 53-54
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances –
Nonmajor Governmental Funds 55-56
Schedules of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual
Nonmajor Governmental Funds 57-58
Internal Service Funds:
Combining Statement of Net Assets 59
Combining Statement of Revenues, Expenses and Changes in Net Assets 60
Combining Statement of Cash Flows 61
Fiduciary Funds:
Combining Statement of Fiduciary Net Assets – Pension Trust Funds 62
Combining Statement of Changes in Fiduciary Net Assets – Pension Trust Funds 63
Statement of Changes in Assets and Liabilities – Agency Fund 64
MIAMI SHORES VILLAGE, FLORIDA
TABLE OF CONTENTS
COMPLIANCE SECTION
Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards 65-66
Management Letter in Accordance with the Rules of the Auditor General of the State
of Florida 67-68
Summary Schedule of Prior Year Audit Findings 69
Schedule of Findings and Responses 70
INDEPENDENT AUDITORS’ REPORT
1
INDEPENDENT AUDITORS' REPORT
Honorable Mayor and Members of the Village Council
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 fiscal year ended September 30, 2009, which collectively comprise the Village’s basic financial statements
as listed in the table of contents. These basic financial statements are the responsibility of the Village's management.
Our responsibility is to express opinions on these basic financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. 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 also 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 Miami Shores Village, Florida as of September 30, 2009, and the respective
changes in financial position and cash flows, where applicable, thereof for the fiscal year then ended in conformity
with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated March 28, 2011 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, and 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 considered
in assessing the results of our audit.
The Management’s Discussion and Analysis and the Budgetary Comparison Schedules, listed in the table of
contents, are not a required part of the basic financial statements but are supplementary information required by
accounting principles generally accepted in the United States of America. We have applied certain limited
procedures, which consisted principally of inquiries of management regarding the methods of measurement and
presentation of the required supplementary information. However, we did not audit the information and express no
opinion on it.
4649 PONCE DE LEON BLVD.
SUITE 404
CORAL GABLES, FL 33146
TEL: 305-662-7272
FAX: 305-662-4266
ACC-CPA.COM
2
Honorable Mayor and Members of the Village Council
Miami Shores Village, Florida
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
Miami Shores Village, Florida, basic financial statements. The combining and individual fund financial statements, the
schedules of funding progress and employer contributions are presented for purposes of additional analysis and are
not a required part of the basic financial statements. The combining and individual fund financial statements 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 schedules
of funding progress and employer contributions have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we express no opinion on them.
Alberni Caballero & Company, LLP
March 28, 2011
Coral Gables, Florida
MANAGEMENT’S DISCUSSION AND ANALYSIS
(Required Supplementary Information)
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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,
2009
Financial Highlights for Fiscal Year 2009
At September 30, 2009, the Miami Shores Village assets exceeded its liabilities by $26.3 million (net
assets). Of this amount, $12.8 million was invested in capital assets, net of related debt. Additionally, $3
million was restricted by law, agreements, debt covenants or for capital projects. The Village had
unrestricted net assets of $10.4 million at September 30, 2009, an increase of $2.9 million or 40% as
compared with the prior year.
During the fiscal year 2009, net assets increased by $2.8 million. Of this increase, $380 thousand was in
business-type activities and the remaining increase of $2.4 million was in governmental activities.
At September 30, 2009, the Miami Shores Village’s governmental funds had fund balances totaling $11.5
million. Of the total fund balance, approximately $6 million or 52% was unreserved and undesignated and
approximately $5.5 million or 48% was reserved for prepaid items, encumbrances and other restricted funds.
The net change in fund balances during the year was an increase of $0.9 million.
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.
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Fund financial statements. A fund 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,
uses 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 funds and fiduciary
funds.
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 fourteen (14) individual governmental funds. Information is presented separately
in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures and
changes in fund balance for the general fund and the four major funds. Data from the other nine 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 statements may be found on pages 15 to 18 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 statements.
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
Stormwater operations, the Sanitation fund is considered to be a major fund 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 19 to 21 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 government-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 22 to 23 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 24 to 46 of this report.
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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 47 to 52 of this report.
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 53 to 64 of this report.
Government-wide Financial Analysis
The difference between a government’s assets and its liabilities is its net assets. The Village’s net assets are
summarized below:
Table 1
Miami Shores Village
Summary of Net Assets
(in millions)
Total
Total primary percentage
Governmental activities Business-type activities government Change
2009 2008 2009 2008 2009 2008 2009-2008
Current and other assets $ 14,248 $ 13,128 $ 2,623 $ 2,173 $ 16,871 $ 15,301 10.3%
Capital assets 22,422 21,745 559 624 22,981 22,369 2.7%
Total assets 36,670 34,873 3,182 2,797 39,852 37,670 5.8%
Long-term liabilities
outstanding 10,711 11,100 51 48 10,762 11,148 -3.5%
Other liabilities 1,755 2,032 994 992 2,749 3,024 -9.1%
Total liabilities 12,466 13,132 1,045 1,040 13,511 14,172 -4.7%
Invested in capital assets,
net of related debt 12,276 11,256 559 624 12,835 11,880 8.0%
Restricted 3,026 4,112 - - 3,026 4,112 -26.4%
Unrestricted 8,902 6,373 1,578 1,133 10,480 7,506 39.6%
Total net assets $ 24,204 $ 21,741 $ 2,137 $ 1,757 $ 26,341 $ 23,498 12.1%
Net assets may be used to assess the financial position of the Village. The Village’s combined net assets as of
September 30, 2009 were $26.3 million. Approximately 49%, or $12.8 million, of the Village’s net assets represent
investment in capital assets, net of outstanding related debt. These assets include land, buildings, machinery and
equipment, and infrastructure and are not available for future spending. Additionally, $3 million are restricted net
assets and are subject to external restrictions on how they may be spent.
At September 30, 2009, Miami Shores Village had unrestricted net assets of $10.5 million. 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.
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Continued on next page
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
Miami Shores Village
Changes in Net Assets
(in millions)
Total
Total primary percentage
Governmental activities Business-type activities government Change
2009 2008 2009 2008 2009 2008 2009-2008
Revenues:
Program revenues:
Charges for services $ 3,708 $ 2,052 $ 3,010 $ 2,956 $6,718 $ 5,008 34.1%
Operating grants & Contributions 88 111 4 - 92 111 -17.1%
Capital grants and Contributions 412 847 - - 412 847 -51.4%
General Revenues:
Property taxes 7,276 7,224 - - 7,276 7,224 0.7%
Other taxes 2,113 3,076 - - 2,113 3,076 -31.3%
Intergovernmental revenues,
unrestricted 790 895 - - 790 895 -11.7%
Interest earnings - unrestricted 100 242 4 14 104 256 -59.4%
Miscellaneous 448 563 - - 448 563 -20.4%
Total revenues 14,935 15,010 3,018 2,970 17,953 17,980 -0.2%
Expenses:
General government 2,489 2,325 - - 2,489 2,325 7.1%
Public safety 5,056 4,650 - - 5,056 4,650 8.7%
Highways Streets 2,238 2,407 - - 2,238 2,407 -7.0%
Sanitation / Stormwater - - 2,423 2,394 2,423 2,394 1.2%
Culture & recreation 2,417 2,321 - - 2,417 2,321 4.1%
Interest on Long-term Debt 487 500 - - 487 500 -2.6%
Total expenses 12,687 12,203 2,423 2,394 15,110 14,597 3.5%
Increase in net assets before
Transfers 2,248 2,807 595 576 2,843 3,383 -15.9%
Transfers 215 215 (215) (215) - - -
Increase in net assets 2,463 3,022 380 361 2,843 3,383 -15.9%
Beginning net assets 21,741 18,719 1,757 1,396 23,498 20,115 16.8%
Ending net assets $ 24,204 $ 21,741 $ 2,137 $ 1,757 $ 26,341 $ 23,498 12.1%
For FY 2009, increases in ending net assets were substantially due to reductions in expenditures in the general fund
and capital funds reserved for future projects. General government expenditures were less than anticipated due to
unfilled vacant positions and a reduction in general government operating expenditures.
-7-
Continued on next page
Figure A-1
Expenses and Program Revenues – Governmental Activities
For the Fiscal Year Ended September 30, 2009
0
2000000
4000000
6000000
8000000
10000000
12000000
RevenuesExpenses
General government Public safety Public Works
Culture/recreation Interest on long-term debt
Figure A-2
Revenues by Source – Governmental Activities
For the Fiscal Year Ended September 30, 2009
Other taxes
19%
Charges for services
24%
Property Taxes
49%Investment earnings
1%
Other
4%
Grant/contribution
3%
-8-
Business-type activities. The Miami Shores Village major business-type activities include the following enterprise
funds:
Sanitation Fund
Stormwater Fund
Net assets of business-type activities increased by approximately $380 thousand. The bar graph below summarizes
the expenses and program revenues of the business-type activities
Figure A-3
Expenses and Program Revenues – Business-type Activities
For the Fiscal Year ended September 30, 2009
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.
As of the end of the current fiscal year, the governmental funds for Miami Shores Village reported combined ending
fund balances of $11.5 million, a $900 thousand increase over FY 2008. Of this amount, $6 million 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
$2.4 million 2) reserved $77 thousand for prepaid assets and 3) reserved for funds which restrict how the funds may
be spent $3 million.
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 $5.0 million as compared with $4.0 million in the prior year. Reserved fund
balance increased from $72 thousand in the prior year to $80 thousand for the current fiscal year, this increase was
mainly due to encumbrances relating to ongoing projects which had not been completed as of last year-end.
0
1000000
2000000
3000000
SanitationStormwater
Program Revenue Expenses
-9-
The Village's general fund balance decreased by $427 thousand during the fiscal year. The main factor associated
with this decrease was the transfer of $1.5 million to the capital project fund for the completion of the fleet
maintenance building. The reduction in anticipated expenditures, wherever possible, and vacant positions mitigated
the decrease in fund balance.
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 $1.2 million, a $380 thousand
increase in net asset values. Unrestricted net assets will be used to fund future purchases of capital assets.
Unrestricted net assets of the Storm water Fund at the end of the year totaled $380 thousand, a $67 thousand
increase in net asset values. Unrestricted net assets are maintained to fund future maintenance projects for the
existing stormwater system.
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. With these adjustments, disbursements were approximately $909 thousand below final budgeted
amounts. General government, $409 thousand, and public safety, $354 thousand, were the most significant
contributors to this variance. There was a significant savings in general government costs and various departmental
savings due to staff vacancies and conservative spending.
The fiscal year 2009 final amended budget was $13.9 million, an increase of 1.6 % over the original General Fund
budget of $13.7 million. Correspondingly, the Consumer Price Index (or inflation index) from the U.S. Bureau of
Labor Statistic – All Urban Consumers South Urban for the past year was -0.4%. Beyond base revenues of $9.7
million and $2.4 million in operating transfers from Excise Tax, Sanitation Fund and Stormwater Fund, the final
Adopted Budget is balanced by an additional $1.7 million from fund balance. However, unanticipated revenues of
$397 thousand and reductions in expenditures of $909 thousand resulted in a decrease in use of fund balance.
Differences between the original budget and the final amended budget increased appropriations by $214 thousand
and can be briefly summarized as follows:
$41thousand in encumbrances carried over
$173 thousand substantially due to increases in legal fees and debt service.
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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, 2009 amounts to $23 million (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 of capital investments includes the cost of the Doctors’ Charter School of Miami Shores.
The following table summarizes the components of the Villages’ investments in capital assets.
Miami Shores Village
Capital Assets as of September 30, 2009 and 2008
(net of depreciation, in thousands)
Governmental Activities Business-Type Activities Total
Classification 2009 2008 2009 2008 2009 2008
Land $ 2,358,437 $ 2,358,437 $ - $ - $ 2,358,437 $ 2,358,437
Construction in progress 2,395,631 868,575 - - 2,395,631 868,575
Building 8,572,022 8,773,750 - - 8,572,022 8,773,750
Land Improvement 1,755,128 1,913,457 - - 1,755,128 1,913,457
Infrastructure 6,321,908 6,730,885 - - 6,321,908 6,730,885
Machinery and equipment 1,018,867 1,101,004 558,671 624,398 1,577,538 1,725,402
Totals $22,421,993 $ 21,746,108 $ 558,671 $624,398 $22,980,664 $22,370,506
Additional information on Miami Shores’ capital assets may be found in Note V on Page 33 of this report.
Long-term Liabilities. At September 30, 2009, Miami Shores Village had $11.5 million in long-term liabilities,
which are summarized in the schedule below. Additional information on the Village’s long-term debt may be found
in Note VI on Pages 34 to 35 of this report.
Miami Shores Village
Outstanding Long-term Liabilities as of September 30, 2009 and 2008
Governmental Activities Business-type activities Total Primary Government
2009 2008 2009 2008 2009 2008
General obligation bonds $ 7,050,000 $ 7,235,000 $ - $ - $ 7,050,000 $ 7,235,000
Other( issuance discount) (7,942) (8,263) - - (7,942) (8,263)
Other debt 3,095,362 3,438,552 - - 3,095,362 3,438,552
10,137,420 10,665,289 - - 10,137,420 10,665,289
OPEB liability 85,622 - 15,225 - 100,847 -
Estimated insurance claims payable 508,387 509,047 - - 508,387 509,047
Compensated absences 735,214 663,521 54,679 65,406 789,893 728,927
Total $11,466,643 $ 11,837,857 $69,604 $65,406 11,536,547 11,903,263
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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. Quality 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.
The State of Florida, by constitution, does not have a state personal income tax and therefore, the State operates
primarily using sales, gasoline and corporate income taxes. Local governments (cities, counties, and school boards)
primarily rely upon property taxes and a limited array of permitted other taxes (sales, telecommunication, gasoline,
utilities services, etc.) and fees (franchise, building permits, occupational licenses, etc.) for funding of their
governmental activities. In addition, there are a number of state-shared revenues and recurring and non-recurring
(one-time) grants from both the state and federal governments.
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 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 became effective on October 1, 2008 with the exception of the ten percent (10%) assessment cap on
non-homestead property which became effective on January 1, 2009. Additional tax relief bills are expected to be
introduced at the upcoming legislative session which could, if ratified, further limit the extent to which
municipalities can levy taxes.
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. Actual taxes levied by the Village in 2009 reflected a drop of $54
million or 5.6% in property values as compared with 2008. It is further expected that assessed values within the
Village will decline considerably due to the current economic downturn and the impact of the housing bubble that
could further reduce revenues at the current millage rate.
Property values for fiscal year 2010 dropped an additional $101 million or 11.2%. Even with the increase in millage
rate from 7.6351 in 2009 to 8.0 in 2010, revenues are projected to decrease $903 thousand or 13.4%. Fund balance
surplus is budgeted in 2010 to make up the required loss of tax dollars. During the current fiscal year, unreserved
fund balance in the General Fund was $5 million compared to $4 million from last year with $1.5 million of
unreserved, but designated fund balance. This $5.0 million is approximately equal to 5 months of General Fund
operating expenditures. The Village, as can be shown in the following graph, is maintaining its unrestricted fund
balance so that a portion of unrestricted fund balance will be available to preclude or moderate future tax and user
fee increases.
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General Fund Unrestricted Surplus
For the Fiscal Years ended September 30, 2000-2009
0
1000000
2000000
3000000
4000000
5000000
6000000
2000200120022003200420052006200720082009
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 millage
rates over the past ten years. For many years, the Village, 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.
Miami Shores Village
Total Village Millage
0
2
4
6
8
10
2000200120022003200420052006200720082009
Operating Millage Debt Service Millage
Fiscal year 2009 budgeted expenditures and transfers are expected to be $13.6 million or 8.86 percent, over fiscal
year 2008. The largest increments are increased salaries and cost-of-living adjustments based on labor agreements
with the police and general employees’ unions.
Requests for Information
This financial report is designed to provide a general overview of Miami Shores Villages’ finances to our citizens,
taxpayers, customers, investors, creditors, and others with an interest in the Villages’ finances. Questions
concerning this report or requests for additional financial information should be directed to the Finance Director,
Holly Hugdahl, CPA.
MIAMI SHORES VILLAGE
Finance Department
10050 Northeast Second Avenue
Miami Shores, Florida 33138-2382
BASIC FINANCIAL STATEMENTS
Business-
GovernmentalType
Activities Activities Total
ASSETS
Cash and cash equivalents12,444,566$ 1,244,679$ 13,689,245$
Investments86,172 - 86,172
Accounts receivable - net 893,539 1,264,913 2,158,452
Due from other governments196,804 - 196,804
Prepaid items240,839 - 240,839
Inventories105,820 114,092 219,912
Net pension asset 206,758 - 206,758
Deferred charges 73,270 - 73,270
Capital assets not being depreciated4,754,068 - 4,754,068
Capital assets being depreciated, net 17,667,925 558,671 18,226,596
Total assets36,669,761 3,182,355 39,852,116
LIABILITIES
Accounts payable and accrued liabilities744,265 76,663 820,928
Unearned revenues 136,801 898,468 1,035,269
Accrued interest payable 117,853 - 117,853
Noncurrent liabilities:
The amount due in one year 756,100 18,642 774,742
The amount due in more than one year10,710,543 51,262 10,761,805
Total liabilities12,465,562 1,045,035 13,510,597
NET ASSETS
Invested in capital assets, net of related debt12,276,631 558,671 12,835,302
Restricted for:
Law enforcement263,988 - 263,988
Debt service949,884 - 949,884
Transportation684,753 - 684,753
Capital projects102,122 - 102,122
Library60,507 - 60,507
Recreation115,767 - 115,767
Buildings76,151 - 76,151
Pilot program84,350 - 84,350
Charter school688,411 - 688,411
Unrestricted8,901,635 1,578,649 10,480,284
Total net assets24,204,199$ 2,137,320$ 26,341,519$
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2009
See notes to basic financial statements
13
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$
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MI
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s
15
Fund balances - total government funds (Page 15)11,495,650$
Amounts reported for governmental activities in the statement
of net assets are different as a result of:
Capital assets used in governmental activities are not
financial resources and therefore are not reported in the
governmental funds.
Governmental capital assets 36,499,911
Less accumulated depreciation (14,727,066)
Unamortized bond issuance costs are not available to pay for current period
expenditures and therefore are not reported in the governmental funds73,270
Net pension asset 206,758
Long-term liabilities, including bonds payable, are not due and
payable in the current period and therefore are not reported in
the governmental funds.
Bonds and notes payable(9,775,974)$
OPEB liability (85,622)
Claims payable (168,388)
Accrued interest payable(117,853)
Compensated absences(695,824) (10,843,661)
Net assets of internal service funds are not reported with governmental funds1,499,337
Net assets of governmental activities (Page 13)24,204,199$
SEPTEMBER 30, 2009
MIAMI SHORES VILLAGE, FLORIDA
RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET ASSETS
GOVERNMENTAL FUNDS
See notes to basic financial statements
16
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17
Amounts reported for governmental activities in the statement
of activities are different as a result of:
Net change in fund balances - total government funds (Page 17)892,640$
Governmental funds report capital outlays as expenditures.
However, in the statement of activities, the cost of those assets
is depreciated over their estimated useful lives.
Expenditures for capital outlays 1,651,286$
Less current year depreciation (876,512)
Net adjustment 774,774
The net effect of various transactions involving capital assets (i.e., sales, trade-ins, and
donations) is to increase (decrease) net assets.(63,134)
The issuance of long term debt (e.g., bonds, leases) 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. Neither
transaction, however, has any effect on net assets.
Principal payments 431,763
Amortization of issuance costs, premiums and discounts (3,384) 428,379
Under the modified accrual basis of accounting used in the governmental funds,
revenues are not recognized until funds are measurable and available to finance
current expenditures. In the statement of activities, however, which is presented
on the accrual basis, revenues are reported when earned.
The detail of the difference is as follows:
Communication services tax refund (150,767)
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
Increase of net pension asset 153,485
Compensated absences (67,198)
OPEB liability (85,622)
Accrued interest payable (1,043)
Allocation of internal service funds' net income 581,131 580,753
Change in net assets of governmental activities (Page 14)2,462,645$
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
MIAMI SHORES VILLAGE, FLORIDA
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
See notes to basic financial statements
18
Governmental
Activities -
Major Fund Non-Major Fund Internal
Service
ASSETS Sanitation Stormwater Total Funds
Current assets:
Cash and cash equivalents 876,794$ 367,885$ 1,244,679$ 1,532,450$
Accounts receivable - net 1,183,362 81,551 1,264,913 26,816
Inventories 114,092 - 114,092 105,214
Prepaid items - - - 164,104
Total current assets 2,174,248 449,436 2,623,684 1,828,584
Capital assets:
Capital assets not being depreciated - - - 7,127
Capital assets being depreciated, net 511,290 47,381 558,671 642,021
Total noncurrent assets 511,290 47,381 558,671 649,148
Total assets 2,685,538 496,817 3,182,355 2,477,732
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 71,483 5,180 76,663 73,681
Due to other funds - - - 163,879
Unearned revenues 839,867 58,601 898,468 -
Compensated absences 17,218 1,424 18,642 9,455
Capital lease - - - 99,391
Claims payable - - - 41,000
Total current liabilities 928,568 65,205 993,773 387,406
Non-current liabilities:
Compensated absences 33,923 2,114 36,037 29,935
Capital lease - - - 262,054
OPEB liability 13,533 1,692 15,225 -
Claims payable - - - 299,000
Total noncurrent liabilities 47,456 3,806 51,262 590,989
Total liabilities 976,024 69,011 1,045,035 978,395
NET ASSETS
Invested in capital assets, net of related debt 511,290 47,381 558,671 287,703
Unrestricted 1,198,224 380,425 1,578,649 1,211,634
Total net assets 1,709,514$ 427,806$ 2,137,320$ 1,499,337$
Enterprise Funds
Business-type Activities -
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2009
See notes to basic financial statements
19
Governmental
Activities -
Major Fund Non-Major Fund Internal
Service
Sanitation Stormwater Total Funds
Operating revenues:
Charges for services 2,781,700$ 228,393$ 3,010,093$ 2,568,978$
Operating expenses:
Administrative and general 752,751 29,601 782,352 539,850
Personnel expenses 718,680 76,750 795,430 259,685
Depreciation 120,122 22,234 142,356 100,355
Contractual services 670,893 32,223 703,116 -
Insurance premiums - - - 883,338
Insurance claims - - - 197,921
Total operating expenses 2,262,446 160,808 2,423,254 1,981,149
Operating income 519,254 67,585 586,839 587,829
Non-operating revenues (expenses):
Interest income 1,514 3,139 4,653 6,129
Interest expense - - - (12,827)
Other revenues - 4,000 4,000 -
Total non-operating revenues (expenses)1,514 7,139 8,653 (6,698)
Income before transfers 520,768 74,724 595,492 581,131
Transfers (out)(185,000) (30,000) (215,000) -
Change in net assets 335,768 44,724 380,492 581,131
Total net assets, beginning 1,373,746 383,082 1,756,828 918,206
Total net assets, ending 1,709,514$ 427,806$ 2,137,320$ 1,499,337$
Enterprise Funds
Business-type Activities -
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
See notes to basic financial statements.
20
Governmental
Activities-
Major Fund Non-Major Fund Internal
Service
Sanitation Stormwater Total Funds
Cash flows from operating activities:
Cash received from customers, governments and other funds 2,493,818$ 206,521$ 2,700,339$ 2,548,802$
Cash paid to suppliers (1,431,698) (62,153) (1,493,851) (2,026,411)
Cash paid for employees (718,061) (72,871) (790,932) (255,190)
Net cash provided by operating activities 344,059 71,497 415,556 267,201
Cash flows from non-capital financing activities:
Transfers out (185,000) (30,000) (215,000) -
Net cash (used in) non-capital financing activities (185,000) (30,000) (215,000) -
Cash flows from capital related financing activities:
Acquisition and construction of fixed assets (76,628) - (76,628) (65,271)
Principal retirements of capital debt - - - (96,426)
Interest paid on capital debt - - - (12,827)
Net cash (used in) capital and related financing activities (76,628) - (76,628) (174,524)
Cash flows from investing activities:
Interest and other income 1,514 7,139 8,653 6,129
Net cash provided by investing activities 1,514 7,139 8,653 6,129
Net increase in cash and cash equivalents 83,945 48,636 132,581 98,806
Cash and cash equivalents, October 1 792,849 319,249 1,112,098 1,433,644
Cash and cash equivalents, September 30 876,794$ 367,885$ 1,244,679$ 1,532,450$
Reconciliation of operating income to net cash
provided by operating activities:
Operating income 519,254$ 67,585$ 586,839$ 587,829$
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation 120,122 22,234 142,356 100,355
Change in assets and liabilities:
(Increase) decrease in:
Accounts receivable (287,882) (21,872) (309,754) (20,176)
Inventories (8,967) - (8,967) (20,589)
Prepaid items - - - (164,104)
Increase (decrease) in:
Accounts payable and accrued liabilities (10,401) (2,567) (12,968) (329,862)
Compensated absences (12,914) 2,187 (10,727) 4,495
OPEB liability 13,533 1,692 15,225 -
Due to other funds - - - 109,253
Unearned revenues 11,314 2,238 13,552 -
Total adjustments (175,195) 3,912 (171,283) (320,628)
Net cash provided by operating activities 344,059$ 71,497$ 415,556$ 267,201$
Enterprise Funds
Business-type Activities -
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
See notes to basic financial statements
21
PensionPrivate
TrustPurpose
Funds Trust Agency
ASSETS
Cash and cash equivalents465,017$ 1,852,521$ 137,814$
Receivables:
Accrued interest and dividends69,763 - -
Total receivables69,763 - -
Investments, at fair value
U.S. Government securities4,266,149 - -
Corporate bonds2,071,559 - -
Mutual funds - equity1,820,744 - -
Common stocks10,140,545 - -
LGIP Fund B Surplus Trust Fund- 66,748 -
Total investments18,298,997 66,748 -
Total assets18,833,777 1,919,269 137,814
LIABILITIES
DROP liability200,206 - -
Deposits held in trust- - 137,814
Total liabilities200,206 - -
NET ASSETS
Net assets held in trust18,633,571$ 1,919,269$ 137,814$
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
SEPTEMBER 30, 2009
See notes to basic financial statements
22
Pension Private
Trust Purpose
Funds Trust
ADDITIONS
Contributions:
Employer 878,845$ -$
Employees 362,428 -
State of Florida 66,924 -
Total contributions 1,308,197 -
Investment income:
Net depreciation in fair value of investments (158,104) -
Interest and dividend income 458,987 23,325
Total investment income 300,883 23,325
Less investment expenses 153,827 -
Net investment income 147,056 23,325
Total additions 1,455,253 23,325
DEDUCTIONS
Benefits paid 1,177,603 -
Distribution to charter school - 250,000
Total deductions 1,177,603 250,000
Changes in net assets 277,650 (226,675)
Net assets- beginning 18,355,921 2,145,944
Net assets- ending 18,633,571$ 1,919,269$
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
See notes to basic financial statements
23
24
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Financial Reporting Entity
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 its 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 the
establishment and adoption of policy. The Village provides the following full range of municipal services as
authorized by its charter: public safety, streets, sanitation, stormwater, culture and recreational activities, public
improvements, planning and zoning, and general administrative services.
The criteria for including component units consist of identification of legally separate organizations for which the
elected officials of the Village are financially accountable. This criteria also includes identification of
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. Blended
component units, although legally separate entities, are in substance, part of the government’s operations and
so data from these units are combined with data of the primary government. Discretely presented component
units are reported in a separate column in the government-wide financial statements to emphasize that they are
legally separate from the government. At September 30, 2009 the Village had no entities that met the definition
for inclusion as a blended or discretely presented component unit.
The financial statements of the Village have been prepared in conformity with accounting principles generally
accepted in the United States of America (GAAP) as applied to governmental units. The Governmental
Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental
accounting and financial reporting. The more significant of the Village's accounting policies are described below:
B. Government-wide and fund financial statements
The government-wide financial statements (i.e., the statement of net assets and the statement of changes in net
assets) report information on all of the nonfiduciary activities of the Village. For the most part, the effect of
interfund activity has been removed from these statements. Governmental activities, which normally are
supported by taxes and intergovernmental revenues, are reported separately from business-type activities,
which rely to a significant extent on fees and charges for 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 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 non-major governmental funds are aggregated and reported as other governmental or other
proprietary funds.
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C. Measurement Focus, Basis of Accounting and Basis of 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. Revenues
are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the
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 receivables
collected within 60 days after year-end to be available and recognizes them as revenues of the current year.
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 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. Revenues for
expenditure driven grants are recognized when the qualifying expenditures are incurred. 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 fund is the Village’s primary operating fund. It accounts for all financial resources of
the general government, except those required to be accounted for in another fund.
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.
Building Better Communities – This fund accounts for the improvements to sidewalks and drainage
systems which are being funded by granting agencies.
Capital Improvement Fund – This fund accounts for major capital acquisitions and projects to improve the
Village.
General Trust Fund – This fund accumulates assets for its employees, other governmental entities and/or
funds, primarily for the recreation, library and police departments, as well as the charter school.
The Village reports the following major proprietary fund:
Sanitation Fund - This fund accounts for the operations and maintenance of the Village’s sanitation system.
Additionally, the Village reports the following fund types:
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 account for the activities of the Police Pension and General
Employees’ Retirement Plans, which accumulate resources for pension benefits to qualified employees.
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 the operating needs of the school.
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Agency Fund – The agency fund is custodial in nature and does not present results of operations or have a
measurement focus. This fund is used to account for assets that the Village holds for others in an agency
capacity.
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.
Governments also have 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 enterprise fund 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, and 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. Proceeds from local option gas tax and Transportation Surtax 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 sanitation, and
stormwater fund and internal service funds are charges to customers or other funds for services. Operating
expenses for the enterprise funds and internal service funds include the cost 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 Village policy to use restricted
resources first, and then unrestricted resources as needed.
D. Deposits and Investments
The Village's cash and cash equivalents, for purpose of the statement of cash flows, include cash on hand, time
and demand deposits, and short-term investments with original maturities of three months or less from the date
of acquisition. The Village maintains a cash pool that is available for use by all funds. Interest earned on pooled
cash is allocated to each of the funds, based on the fund’s average equity balance on a monthly basis.
All of the Village’s investments are reported at fair value, which is based on quoted market prices The Village’s
investment in the State Board of Administration Investment Pool is divided into the Local Government Surplus
Funds Trust Fund Investment Pool (“LGIP”) and the Fund B Surplus Funds Trust Funds (“Fund B”). The LGIP is
considered a SEC 2A-7-like fund, thus reported at its fair value of its position in the pool, which is the same as its
value of the pool shares. The Fund B is accounted for as a fluctuating NAV pool. The fair value factor for
September 30, 2009 was .798385. The account balance in Fund B should be multiplied by the factor in order to
calculate the fair value of the Village’s investment in Fund B.
The Plan’s investments are carried at fair value using quoted market prices to value investments. Differences
between cost and market value are recorded as net unrealized gains or losses. Net realized gains or losses for
securities which are sold are combined with the unrealized gains and losses and shown as “net appreciation
(depreciation) in fair value of investments” in plan net assets. Dividends and interest are recognized as earned.
Purchases and sales of investments are recorded on a trade-date basis.
Investments in the Village's local government surplus funds are governed by the provisions of Florida Statutes
Section 218.415. Investments in the Village's retirement plans are governed by the Plan's investment policies.
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E. Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the
fiscal year are referred to as either “due to/from other funds” (i.e. the current portion of interfund loans) or
“advances to/from other funds” (i.e. the non-current portion of interfund loans). All other outstanding balances
between funds are reported as “due to/from other funds.” Any residual balances outstanding between the
governmental activities and business-type activities are reported in the government-wide financial statements as
“internal balances.”
F. Inventories and Prepaid Items
Inventories are valued at cost using the first-in, first-out (FIFO) method. The costs of governmental fund-type
inventories are recorded as expenditures when consumed rather than when purchased (consumption method).
In the governmental funds, reported inventories are offset by fund balance reserve which indicates that they do
not constitute available spendable resources.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid
items in both government-wide and fund financial statements. 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.
G. Property Taxes
Property values are assessed as of January 1 of each year, at which time taxes become an enforceable lien on
the property. Tax bills are mailed for the Village by Miami Dade County on or about October 1 of each year and
are payable with discounts of up to 4% offered for early payment. Taxes become delinquent on April 1 of the
year following the year of assessment and State law provides for enforcement of collection of property taxes by
seizure of the personal property or by the sale of interest-bearing tax certificates to satisfy unpaid property taxes.
Assessed values are established by the Miami-Dade County Property Appraiser. In November 1992, a Florida
constitutional amendment was approved by the voters, which provides for limiting the increases in homestead
property valuations for ad valorem tax purposes to a maximum of 3% annually and also provides for
reassessment of market values upon changes in ownership. The County bills and collects all property taxes and
remits them to the Village.
State statutes permit municipalities to levy property taxes at a rate of up to 10 mills ($10 per $1,000 of assessed
taxable valuation). The tax levy of the Village is established by the Village Council and the Miami-Dade County
Property Appraiser incorporates the Village’s millage into the total tax levy, which includes the County and the
County School Board tax requirements. The millage rate assessed by the Village for the year ended September
30, 2009 was 7.6351 mills ($7.6351 per $1,000 of taxable assessed valuation).
H. Restricted Assets
Assets of the debt service fund have been classified as restricted because their use is restricted by a bond
indenture agreement for the Village’s debt service requirements. Proceeds from forfeiture funds are classified as
restricted in the Law Enforcement Training and Police Forfeiture Special Revenue Funds since these resources
are specifically earmarked for law enforcement purposes only. Additionally, proceeds from the People’s
Transportation Tax and Local Option Gas Tax are classified as restricted since these resources may only be
used for road and transportation related expenditures.
Assets held in the General Trust Fund are restricted primarily for recreation, library and police departments, as
well as the charter school.
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I. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges,
sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in
the government-wide financial statements. The Village defines capital assets as assets with an initial, individual
cost of more than $1,000 and an estimated useful life in excess of three years. Purchased or constructed assets
are recorded at historical cost or estimated historical cost. Donated capital assets are recorded at estimated fair
market value at the date of donation.
Major outlays for capital assets and improvements are capitalized as projects are constructed. The costs of
normal maintenance and repairs that do not add value to the asset or materially extend its useful life are not
capitalized.
Capital assets of the Village are depreciated using the straight line method over the following estimated useful
lives:
Assets Years
Buildings and improvements 10-40
Land improvements 40
Infrastructure 30
Sanitation equipment 10
Vehicles 5
Other equipment, machinery, furniture and fixtures 3-10
J. Deferred Charges
Deferred charges in the government-wide financial statements represent unamortized portion of bond issuance
costs. These costs are being amortized over the term of the related bond issue.
K. 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 on a monthly basis. Vacation leave accrued in 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 a maximum allotted for the employee’s length of service.
The Village’s sick leave policy provides for the accumulation of one 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 (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 is accrued and reported as a fund liability when it is probable that the Village will
compensate the employee with expendable available financial resources. Vacation and sick leave is accrued
when incurred in proprietary funds and reported as a fund liability. All vacation pay is accrued when incurred in
the government-wide and proprietary fund financial statements. A liability for these amounts is reported in
governmental funds only if they have matured, for example, as a result of employee resignations and
retirements. For governmental funds, compensated absences are generally liquidated by the General Fund.
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L. Unearned Revenues
Unearned revenues include amounts collected before revenue recognition criteria are met and receivables,
which, under the modified accrual basis of accounting, are measurable, but not yet available. The unearned
items consist primarily of license and permit revenues. Unearned revenues in the proprietary funds are related
to billings for the 09-10 fiscal year.
M. 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 issuance costs are amortized
over the term of the related debt. For proprietary fund types, bonds payable are reported net of the applicable
bond premium, discount, and issuance costs.
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 other financing
sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt
issuances are reported as other financing uses. Issuance costs are reported as debt service expenditures.
N. Net Assets
In accordance with GASB Statement No. 34, total equity as of September 30, 2009, is classified into three
components of net assets:
Invested in capital assets, net of related debt: This category consists of capital assets (including
restricted capital assets), net of accumulated depreciation and reduced by any outstanding balances of
bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction, and
improvements of those assets.
Restricted net assets: This category consists of net assets restricted in their use by (1) external groups
such as grantors, creditors or laws and regulations of other governments; or (2) law, through
constitutional provisions or enabling legislation.
Unrestricted net assets: This category includes all of the remaining net assets that do not meet the
definition of the other two categories.
O. 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 restricted by outside parties for use for a specific purpose. The
description of each reserve indicates the purpose for which each is intended. Designations of fund balance
represent tentative management plans that are subject to change.
Unreserved, undesignated fund balance is the portion of fund equity available for any lawful use.
P. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions that affect the amounts of assets,
liabilities, disclosures of contingent liabilities, revenues and expenditures/expenses reported in the financial
statements and accompanying notes. These estimates include assessing the collectibility of receivables, the
realization of pension obligations and the useful lives of capital assets. Although these estimates as well as all
estimates are based on management's knowledge of current events and actions it may undertake in the future,
they may ultimately differ from actual results.
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Q. New Accounting Pronouncements
As further discussed in Note XI, the Village implemented Governmental Accounting Standards Board Statement
No. 45, Accounting and Financial Reporting by Employers of Postretirement Benefits Other Than Pensions,
effective October 1, 2008.
II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
By its nature as a local government unit, the Village is subject to various federal, state, and local laws and
contractual regulations. The Village has no material violations of finance-related legal and contractual
obligations.
1. Fund Accounting Requirements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The Village, like any other state and local governments, uses
fund accounting to ensure and demonstrate compliance with finance related requirements, bond covenants,
and segregation for management purposes.
2. Revenue Restrictions
The Village has various restrictions placed over certain revenue sources from federal, state, or local
requirements. The primary revenue sources include:
Revenue Source Legal Restrictions of Use
Gas Tax Roads, sidewalks, streets
Transportation Surtax Transportation and roads
Police Forfeitures Law Enforcement
Federal Emergency Management Agency Disaster mitigation
For the fiscal year ended September 30, 2009, the Village complied, in all material respects, with these
revenue restrictions.
III. DEPOSITS AND INVESTMENTS
Deposits
In addition to insurance provided by the Federal Depository Insurance Corporation, all deposits are held in
banking institutions approved by the State Treasurer of the State of Florida to hold public funds. Under
Florida Statutes Chapter 280, Florida Security for Public Deposits Act, the State Treasurer requires all
Florida qualified public depositories to deposit with the Treasurer or another banking institution eligible
collateral. 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 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 obligations of the U.S. Treasury, its agencies, instrumentalities and the
Local Government Surplus Funds Trust Fund administered by the State Board of Administration. The
investment policy defined in the statutes attempts to promote, through state assistance, the maximization of
net interest earnings on invested surplus funds of local units of governments while limiting the risk to which
the funds are exposed.
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Investments – Village
As of September 30, 2009, the Village had the following investments:
Investment Type
Fair Value
Weighted
Average
Maturity
(Days)
Weighted
Average
Maturity
(Years)
SBA- LGIP $ 762,047 52 n/a
SBA- Fund B 152,920 n/a 7.49
Total $914,967
Interest Rate Risk - Interest rate risk refers to the portfolio’s exposure to fair value losses arising from
increasing interest rates. The Village does not have a written policy on interest rate risk; however, the
Village manages its exposure to declines in fair values by limiting the weighed average monthly maturity of
its investment portfolio to less than 180 days.
Credit Risk - State law limits investments in bonds, U.S. Treasuries and agency obligations, or other
evidences of indebtedness to the top ratings issued by nationally recognized statistical rating organizations
(NRSRO) of the United States. The LGIP is rated AAAm by Standard and Poor’s and Fund B is not rated by
nationally recognized statistical rating agencies.
Concentration of Credit Risk - The Village’s investment policy does not stipulate any limit on the
percentage that can be invested in any one issuer. GASB Statement No. 40 requires disclosure when the
percent is 5% or more in any one issuer. As of September 30, 2009, the value of each position held in the
Village’s portfolio comprised of less than 5% of the Village’s investment assets.
Investments – Pension Plans
As of September 30, 2009, the Plan had the following investments:
Investment Maturities (in Years)
Investment Type
Fair
Value
Less than 1
Year
1-5 Years
6-10 Years
More than
10 Years
U.S. Government Securities $4,266,149$ 69,456$3,208,052 $ 800,853 $187,788
Corporate bonds 2,071,559 116,611 900,551 938,674 115,723
Total fixed income securities $6,337,708 $186,067 $4,108,603 $1,739,527 $303,511
Interest Rate Risk – Interest rate risk is the risk that changes in market interest rates will adversely affect
the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity
of its fair value to changes in market interest rates. As a means of limiting its exposure to interest rate risk,
the Plan diversifies its investments by security type and institution, and limits holdings in any one type of
investment with any one issuer with various durations of maturities.
Credit Risk – Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real
or perceived change in the ability of the issuer to repay its debt. This risk is generally measured by the
assignment of a rating by a nationally recognized statistical rating organization. The Plan’s investment
policy utilizes portfolio diversification in order to control this risk. The Plan’s investment policies limit
investments in fixed income securities to a rating of “A” or higher by Moody’s or Standard & Poor’s rating
services and collateralized mortgage obligations (CMO’S) to a rating of “Aaa” by Moody’s or “AAA” by
Standard and Poor’s rating services.
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The following table discloses credit ratings by investment type, at September 30, 2009:
Standard & Poor’s
Quality ratings of credit
risk debt securities
Fair Value
Percentage of
Fixed Income
Portfolio
AAA $3,773,119 59.53%
AA+ 132,392 2.09%
AA 89,673 1.41%
AA- 82,971 1.31%
A+ 294,339 4.64%
A 930,179 14.68%
A- 506,331 7.99%
BBB+ 30,039 0.47%
N/R 498,666 7.87%
$6,337,708 100.00%
Concentration of Credit Risk –The investment policy of the Plan contains limitations on the amount that
can be invested in any one issuer as well as maximum portfolio allocation percentages. As of September
30, 2009, no investment by any one issuer was above the 5% threshold required for disclosure.
Custodial of Credit Risk –This is the risk that in the event of a failure of the counterparty, the Plan will not
be able to recover the value of its investments or collateral securities that are in the possession of an outside
party. Consistent with the Plan’s investment policy, the investments are held by Plan’s custodial bank and
registered in the Plan’s name.
Risks and uncertainties - The Plan has investments in a combination of stocks, bonds, government
securities and other investment securities. Investment securities are exposed to various risks, such as
interest rate, market and credit risk. Due to the level of risk associated with certain investment securities and
the level of uncertainty related to changes in the value of investment securities, it is at least reasonably
possible that changes in risks in the near term would materially affect balances and the amounts reported in
the statement of plan net assets and the statement of changes in plan net assets. The Plan, through its
investment advisors, monitors the Plan's investments and the risks associated therewith on a regular basis,
which the Plan believes minimizes these risks.
The Village does not participate in any securities lending transactions nor has it used, held or written
derivative financial instruments.
IV. RECEIVABLES
Receivables at year-end are as follows:
NonmajorNonmajorInternal
Excise TaxSanitationGovernmentalEnterpriseService
General Fund Fund Funds Funds Funds Total
Receivables:
Accounts-$ -$ 1,183,362$ -$ 81,551$ 26,816$ 1,291,729$
Taxes288,842 263,765 - 94,511 - - 647,118
Grants and other199,557 - - 20,048 - - 219,605
Total receivables488,399 263,765 1,183,362 114,559 81,551 26,816 2,158,452
Governmental funds report deferred revenues for revenues considered to be not yet available to liquidate
liabilities of the current period. Governmental funds also defer revenue recognition on revenues received but not
yet earned.
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V. CAPITAL ASSETS
Capital assets activity for the fiscal year ended September 30, 2009 was as follows:
Beginning Additions Deletions Ending
Governmental activities
Capital assets not being depreciated:
Land $ 2,358,437 $ - $ - $ 2,358,437
Construction in progress 868,575 1,527,056 - 2,395,631
Total capital assets not being depreciated 3,227,012 1,527,056 - 4,754,068
Capital assets being depreciated:
Building and improvements 11,000,731-- 11,000,731
Land improvements 3,793,98112,365 - 3,806,346
Infrastructure 15,661,7294,658 - 15,666,387
Machinery and equipment 3,557,559 110,468 (1,796) 3,666,231
Total capital assets being depreciated 34,014,000 127,491 (1,796) 34,139,695
Less accumulated depreciation for:
Building and improvements (2,226,981) (201,728) - (2,428,709)
Land improvements (1,880,524) (170,694) - (2,051,218)
Infrastructure (8,930,844) (413,635) - (9,344,479)
Machinery and equipment (2,456,555) (190,809) - (2,647,364)
Total accumulated depreciation (15,494,904) (976,866) - (16,471,770)
Total capital assets being depreciated, net 18,519,096 (849,375) - 17,667,925
Governmental activities capital assets, net $ 21,746,108 $ 677,681 $(1,796) $ 22,421,993
Business-type activities Beginning Additions Deletions Ending
Capital assets being depreciated:
Machinery and equipment $2,169,045 $ 76,629 $ - $ 2,245,674
Less accumulated depreciation for:
Machinery and equipment (1,544,647) (142,356) - (1,687,003)
Total capital assets being depreciated, net 624,398 (65,727) - $558,671
Business activities capital assets, net $624,398 $(65,727) - $558,671
Depreciation expense was charged to functions/programs of the Village as follows:
General Government $ 130,182
Public Safety 74,149
Public Works 544,210
Culture and Recreation 228,325
Total depreciation expense – governmental activities $976,866
Business- type activities
Sanitation $120,122
Stormwater 22,234
Total depreciation expense – business- type activities $142,356
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VI. LONG-TERM DEBT
1. 1999 General Obligation Bonds (Aquatic Center)
The 1999 General Obligation Bonds were issued by the Florida Municipal Loan Council. Principal is due
annually over 30 years at various amounts ranging from $80,000 in 2010 to a final payment of $195,000 in
2029. The bonds bear interest at variable rates ranging from 3.2% to 5.00%, payable semi-annually. The
bonds are secured by ad-valorem revenues.
Debt service requirements to maturity for the fiscal year ending September 30, 2009 are summarized as
follows:
Principal Interest Total
2010 $80,000 $126,150 $ 206,150
2011 80,000 122,650 202,650
2012 85,000 119,050 204,050
2013 90,000 115,225 205,225
2014 95,000 111,175 206,175
2015-2019 550,000 478,150 1,028,150
2020-2024 695,000 329,250 1,024,250
2025-2029 885,000 137,000 1,022,000
Total $2,560,000 $1,538,650 $ 4,098,650
2. 2004 General Obligation Bonds (Charter School)
The 2004 General Obligation Bonds were issued by the Village of Miami Shores. Principal is due annually
over 30 years at various amounts ranging from $110,000 in 2009 to final payment of $305,000 in 2033. The
bonds bear interest at variable rates ranging from 3% to 5%, payable semi-annually. The bonds are
secured by ad-valorem revenues.
Debt service requirements to maturity for the fiscal year ending September 30, 2009 are summarized as
follows:
Principal Interest Total
2010 $110,000 $204,110 $314,110
2011 115,000 200,258 315,258
2012 120,000 196,058 316,058
2013 125,000 191,495 316,495
2014 130,000 186,620 316,620
2015-2019 725,000 845,903 1,570,903
2020-2024 895,000 656,088 1,551,088
2025-2029 1,135,000 403,000 1,538,000
2030-2033 1,135,000 88,500 1,223,500
Total $4,490,000 $2,972,030 $7,462,030
3. Series 2006 Promissory Note
In May 2006, the Village borrowed $3,500,000 from SunTrust Bank. The note bears interest at a rate of
4.56% per annum. The note was obtained for the purpose of repaying outstanding notes and lines of credit.
The Village pledge local option gas tax revenues and ad valorem tax revenues to secure the note. The note
matures in May 2018 and requires quarterly principal and interest payments throughout the life of the note.
Debt service requirements to maturity for the fiscal year ending September 30, 2009 are summarized as
follows:
Principal Interest Total
2010 $260,277 $120,050 $380,327
2011 292,150 88,177 380,327
2012 284,877 95,450 380,327
2013 298,091 82,236 380,327
2014 311,918 68,409 380,327
2015-2018 1,286,604 240,082 1,526,686
Total $2,733,917 $694,404 $3,428,321
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4. Capital leases
The Village has entered into a lease purchase agreement as lessee for financing the acquisition of police
vehicles in the fleet maintenance fund. The lease agreement qualifies as a capital lease for accounting
purposes and has been recorded at the present value of the future minimum lease payments as of the
inception date. Under the terms of the agreement, the Village will make quarterly payments of $27,313,
including interest at 3.04% per annum, over a period of 60 months.
Future minimum lease payments and the present value of net minimum lease payments as of September
30, 2009 are as follows:
Fiscal Year Ending September 30,
Governmental
Activities
2010 $109,253
2011 109,253
2012 109,253
2013 54,626
Total minimum lease payments 382,385
Less amount representing interest (20,940)
Present value of net minimum lease payments $361,445
The assets acquired through capital leases outstanding as of September 30, 2009 are as follows:
Assets:
Fleet $406,522
Less accumulated depreciation (37,720)
Total $368,802
Long-term debt activity for the fiscal year ended September 30, 2009 was as follows:
Due within
Beginning Additions Reductions Ending One Year
Governmental Activities
Bonds and notes payable:
General obligation bonds payable-1999 $ 2,635,000 $ - $(75,000) $ 2,560,000 $80,000
General obligation bonds payable-2004 4,600,000 - (110,000) 4,490,000 110,000
Promissory note – 2006 2,980,681 - (246,764) 2,733,917 260,277
Less deferred amounts – discounts (8,263) - 321 (7,942) -
Total bonds and notes payable 10,207,418 - (431,443) 9,775,975 450,277
Other liabilities:
Capital lease 457,871 - (96,426) 361,445 99,391
OPEB liability - 85,622 - 85,622 -
Claims payable 509,047 9,474 (10,134) 508,387 51,000
Compensated absences 663,521 551,784 (480,091) 735,214 155,432
Governmental activity long-term liabilities $11,837,857 $646,880 $(1,018,094) $11,466,643 $756,100
Business-type activities
Other liabilities:
OPEB liability $ - $ 15,225 $ - $15,225 $ -
Compensated absences 65,406 29,115 (39,842) 54,679 18,642
Business-type activities Long-term liabilities $65,406 $ 44,340 $(39,842) $69,904 $18,642
36
VII. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Interfund balances at September 30, 2009 are as follows:
Interfund
Receivable
Interfund
Payable
General Fund $265,935 $ -
Excise Tax - 147,166
Building Better Communities - 118,769
Non-Major Governmental Funds 163,879 -
Internal Service Funds - 163,879
Total $429,814 $429,814
The outstanding balances between funds result mainly from the time lag between the dates that (1) interfund
goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the
accounting system, and (3) payments between funds are made.
Interfund transfer activity for the year ended September 30, 2009 was as follows:
Transfers In Transfers Out
General fund $2,362,200 $2,089,138
Excise tax - 2,147,200
Building better communities 21,803 -
Capital improvement fund 3,193,259 -
Sanitation fund - 185,000
Stormwater fund – non-major - 30,000
Non-major governmental funds 489,581 1,615,505
$6,066,843 $6,066,843
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.
VIII. EMPLOYEE RETIREMENT PLANS
The Village maintains two separate defined benefit single-employer pension plans, the General Employees'
Retirement Plan and the Police Officers' Retirement Plan which cover substantially all of its full-time employees.
The Village accounts for these pension plans as pension trust funds.
Basis of Accounting
The Village's pension plans are accounted for 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 national or international exchanges are valued at the
last reported sales price or exchange rate. Net appreciation (depreciation) in fair value of investments includes
the difference between cost and fair value of investments held as well as the net realized gains or losses from
securities sold. Interest and dividend income is recognized on the accrual basis when earned. Purchases and
sales of investments are recorded on a trade date basis.
37
Membership
The membership in the Plans as of October 1, 2008 consisted of:
General
Employees
Police
Inactive employees:
Retirees and beneficiaries currently receiving benefits
and terminated employees entitled to benefits but not yet receiving them 42 22
Active participants:
Fully vested 20 12
Non-vested 46 16
66 28
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 Plan is 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.
Deferred Retirement Option Plan
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 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 Employees' 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 Village 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 payments 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, 2009, total liabilities for the DROP were $98,098.
Funding Policy
Plan members are required to contribute 6% of their annual covered salary. The employer contributions for the
fiscal year ending September 30, 2009, determined using the actuarial valuation dated October 1, 2007, were
2.02% of covered payroll. The Village contributes at actuarially determined rates that are designed to accumulate
sufficient assets to pay benefits when due.
38
Funded Status and Funding Progress
The funded status of the Plan as of October 1, 2007, the most recent actuarial valuation date, is as follows:
UAAL
as a
Actuarial Actuarial Percentage
Value Accrued Unfunded of
Actuarial of Liability AAL Funded Covered Covered
Valuation Assets (AAL) - (UAAL) Ratio Payroll Payroll
Date (a) (b)(*) (b-a) (a/b) (c) (b-a)/c
10/1/2007 $ 8,989,754 $ 8,474,105 $ (515,649)106.1% $ 2,918,493 -17.7%
(*)For purposes of this schedule, the AAL for the Plan is determined using the entry age actuarial cost method.
Note the ARC for the Plan is calculated using the aggregate cost method.
The schedule of funding progress, presented as required supplementary information (RSI) following the notes to
the financial statements, presents multiyear trend information about whether the actuarial value of Plan assets
are increasing or decreasing over time relative to the AAL for benefits.
Annual Pension Cost and Net Pension Obligation (Asset)
The Village's 2009 contribution was determined through an actuarial valuation performed as of October 1, 2007.
Significant actuarial assumptions used in the latest actuarial valuation are as follows:
Valuation date 10/1/07
Actuarial cost method Aggregate
Amortization method NA
Equivalent Single Amortization Period NA
Asset Valuation Method 5-year smoothed market
Actuarial assumptions:
Investment rate of return * 8.0%
Projected salary increases* 5.5%
Cost-of-living adjustments Not applicable
*Includes inflation and other general
increases at 4%
The aggregate actuarial cost method is used to determine the annual required contribution of the employer for
the Plan. Because the method does not identify or separately amortize unfunded actuarial liabilities, information
about the Plan's funded status and funding progress has been prepared using the entry age actuarial cost
method for that purpose, and the information presented is intended to serve as a surrogate for the funded status
and funding progress of the Plan.
39
The Village's annual pension cost and net pension asset for the Plan for the year ended September 30, 2009
was as follows:
Annual required contribution $88,622
Interest on net pension obligation (83)
Adjustment to annual required contribution (112)
Annual pension cost 88,651
Contributions made 99,500
(Decrease) in net pension asset 10,849
Net pension asset, beginning of year 1,006
Net pension asset, end of year $11,855
Three Year Trend Information
Fiscal Year
Ended
Annual Pension
Cost (APC)
Actual Contribution
% of Annual
Pension Cost
Contribution (APC)
Net Pension Asset
9/30/07 56,275 72,554 129% 15,244
9/30/08 88,651 88,622 99% 1,006
9/30/09 88,651 99,500 112% 11,855
Financial Information
The Plan does not issue separate stand-alone financial statements, therefore, included below is the Statement of
Plan Net Assets and the Statement of Changes in Plan Net Assets as of and for the fiscal year ended September
30, 2009.
STATEMENT OF PLAN NET ASSETS
SEPTEMBER 30, 2009
ASSETS
Cash and cash equivalents $ 167,972
Investments, at fair value 7,666,361
Accrued interest receivable 26,612
Total assets 7,860,945
LIABILITIES AND NET ASSETS
DROP liability 98,098
Net assets held in trust for pension benefits $7,762,847
STATEMENT OF CHANGES IN PLAN NET ASSETS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
ADDITIONS
Contributions $283,933
Net investment income 35,027
Total additions 318,960
DEDUCTIONS
Pension benefits 387,257
Change in net assets (68,297)
Net assets held in trust for pension benefits:
Beginning 7,831,144
Ending $7,762,847
40
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. 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 701/4 years. At the end of September 30, 2009, total liabilities for the DROP were
$102,108.
Funding Policy
The Village's contribution rate is adjusted each year to an amount equal to the total pension cost for the year, as
determined by the most recent actuarial valuation which is designed to accumulate sufficient assets to pay
benefits when they are due. Members are required to contribute 9% of their annual covered earnings. Pursuant
to Chapter 185 of the Florida Statutes, a premium tax on certain casualty insurance contracts written on Miami
Shores properties is collected by the State and is remitted to the Plan. This amount totaled $66,924 for the fiscal
year ended September 30, 2009. This amount was recognized as expenditure and revenue in the General Fund.
The Village is required to contribute the remaining amounts necessary to finance the benefits through periodic
contributions of actuarially determined amounts. For the fiscal year ended September 30, 2009, the Village's
contribution was 39.95% of annual covered earnings which was determined by the October 1, 2007 actuarial
valuation.
41
Funded Status and Funding Progress
The funded status of the Plan as of October 1, 2007, the most recent actuarial valuation date, is as follows:
UAAL
as a
Actuarial Actuarial Percentage
Value Accrued Unfunded of
Actuarial of Liability AAL Funded Covered Covered
Valuation Assets (AAL) - (UAAL) Ratio Payroll Payroll
Date (a) (b)(*) (b-a) (a/b) (c) (b-a)/c
10/1/2007 $ 11,320,831 $ 15,114,334 $ 3,793,503 74.9% $ 1,683,969 225.3%
(*)For purposes of this schedule, the AAL for the Plan is determined using the entry age actuarial cost method.
Note the ARC for the Plan is calculated using the aggregate cost method.
The schedule of funding progress, presented as required supplementary information (RSI) following the notes to
the financial statements, presents multiyear trend information about whether the actuarial value of Plan assets
are increasing or decreasing over time relative to the AAL for benefits.
Annual Pension Cost and Net Pension Obligation (Asset)
The Village's 2009 contribution was determined through an actuarial valuation performed as of October 1, 2007.
Significant actuarial assumptions used in the latest actuarial valuation are as follows:
Valuation date 10/1/07
Actuarial cost method Aggregate
Amortization method NA
Equivalent Single Amortization Period NA
Asset Valuation Method 5-year smoothed market
Actuarial assumptions:
Investment rate of return * 8.0%
Projected salary increases* 6.5%
Cost-of-living adjustments 1.5%
*Includes inflation and other general
increases at 4.0%
The aggregate actuarial cost method is used to determine the annual required contribution of the employer for
the Plan. Because the method does not identify or separately amortize unfunded actuarial liabilities, information
about the Plan's funded status and funding progress has been prepared using the entry age actuarial cost
method for that purpose, and the information presented is intended to serve as a surrogate for the funded status
and funding progress of the Plan.
42
The Village's annual pension cost and net pension asset to the Plan for the fiscal year ended September 30,
2009 was as follows:
Annual required contribution $700,455
Interest on net pension obligation (1,091)
Adjustment to annual required contribution 1,892
Annual pension cost 703,633
Contributions made 846,269
(Decrease) in net pension asset 142,636
Net pension asset, beginning of year 52,267
Net pension asset, end of year $194,903
Three Year Trend Information
Fiscal Year
Ended
Annual Pension
Cost (APC)
Actual Contribution
% of Annual
Pension Cost
Contribution (APC)
Net Pension Asset
9/30/07 595,136 594,211 99.8% 13,636
9/30/08 701,256 739,887 106% 52,267
9/30/09 703,633 846,269 120% 194,903
Financial Information
The Plan does not issue separate stand-alone financial statements, therefore, included below is the Statement of
Plan Net Assets and the Statement of Changes in Plan Net Assets as of and for the fiscal year ended September
30, 2009.
STATEMENT OF NET PLAN ASSETS
SEPTEMBER 30, 2009
ASSETS
Cash and cash equivalents $ 297,045
Investments, at fair value 10,632,636
Accrued interest receivable 43,151
Total assets 10,972,832
LIABILITIES AND NET ASSETS
DROP liability 102,108
Net assets held in trust for pension benefits $10,870,724
STATEMENT OF CHANGES IN PLAN NET ASSETS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
ADDITIONS
Contributions $1,024,264
Net investment income 112,029
Total additions 1,136,293
DEDUCTIONS
Pension benefits 790,346
Change in net assets 345,947
Net assets held in trust for pension benefits:
Beginning 10,524,777
Ending $10,870,724
43
IX. 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.
As of September 30, 2009, there were two liability claims and three workers' compensation claims outstanding
under the previous self-insurance program. Since the claims are still outstanding and have not been settled as of
year-end; the Village increased the liability in order to meet actuarially determined reserves to be able to meet
the self-insured amount when these claims are ultimately settled.
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, 2009 and 2008 are as follows:
2009 2008
Unpaid claims, beginning $509,047 $406,000
Incurred claims (including IBNR’s) 9,474 123,705
Claim payments and disbursements ( 10,134) (20,658)
Unpaid claims, ending $508,387 $509,047
The above claims liability includes the Village's commitment to Miami-Dade County for a prior workers'
compensation claim for $168,387. This is the final remaining claim from a program with the County that the
Village participated in previously. The Village is required to pay $2,200 per quarter as well as any medical
expenses the claimant incurs related to the injury. In the current year, the Village paid the County $10,134
related to this claim. The current portion related to the Miami-Dade County claim is $10,000.
X. COMMITMENTS AND CONTINGENCIES
1. Litigation
Various suits and claims arising in the ordinary course of operations are pending against the Village. While
the ultimate effect of such litigation cannot be ascertained at this time, in the opinion of legal counsel, the
Village has sufficient insurance coverage to cover any claims and/or liabilities, which may arise from such
action. The effect of such losses would not materially affect the financial position of the Village or the results
of its operations.
2. Grants
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor
agencies. Any disallowed claims, including amounts already collected may constitute a liability of the
applicable funds. In the opinion of management, future disallowances of grant expenditures, if any, would
not have a material adverse effect on the Village's financial condition.
44
XI. OTHER POST EMPLOYMENT BENEFITS
Plan Description and Provisions
Other Post-Employment Benefits (OPEB) are available to all employees eligible for Disability, Early or
Normal Retirement, as above, after terminating employment with the Village. The OPEB benefits include
access to coverage for the retiree and dependents under the Medical and Prescription Plans as well as
participation in the Dental group plans sponsored by the Village for employees.
HEALTH-RELATED BENEFITS
Eligible retirees may choose among the same Medical Plan options available for active employees of the
Village. Dependents of retirees may be covered at the retiree’s option the same as dependents of active
employees. Prescription Drug coverage is automatically extended to retirees and their dependents who
continue coverage under any one of the Medical Plan options. Covered retirees and their dependents are
subject to all the same Medical and Prescription benefits and rules for coverage as are active employees.
Retired Police Officers who are over age 65 are only eligible to enroll in Medicare Advantage Plan. Retired
General Employees and their dependents who are over age 65 are not required to enroll for Part B under
Medicare in order to remain covered under the program. For claims otherwise covered under the Medicare
Part B, the Plan pays as secondary only for retirees actually enrolled into Parts A and B. However, currently
no retired General Employee stays in the program after attaining age 65.
RETIREE CONTRIBUTIONS FOR MEDICAL/PRESCRIPTION
In order to begin and maintain retiree Medical/Prescription coverage, premium contributions are required
from the retiree. For dependent coverage, the retiree is required to pay a premium as well. If any required
amounts are not paid timely, the coverage for the retiree and/or the dependent(s) will cease. The amount of
the contributions required for retiree and dependent coverage may change from time to time.
MEDICAL INSURANCE SUPPLEMENT
Retired Police Officers are eligible for supplemental payments from the Village in the amount of $100 per
month to help paying for the costs of health insurance, even if retired officers have coverage through a
different health plan. Eligibility is conditioned upon demonstration that the Officer has health insurance
coverage. The benefit stops at age 65.
This benefit is partially funded during active employment with the Village – Police officers contribute $4.05
per pay period towards future payments from the Village. In the event of termination prior to 10 years of
service, the accumulated employee contributions are forfeited. In the event of termination after 10 years of
service but prior to OPEB eligibility, the member may request a refund of the employee contribution and
forfeit the right to future coverage. The employee contributions are not held in a qualifying trust or similar
arrangement.
DISABLED RETIREES PREMIUM CONTRIBUTIONS
Members eligible for disability retirement are subject to premium payments the same as all regular retirees.
An exception is made to Police Officers who had sustained catastrophic injuries in the line of duty.
Premiums for health coverage of the such officers, their spouses and any dependent children will be paid by
the Village as prescribed by the Florida Statute Sections 112.19(2)(g)1 and 112.19(2)(h)1 respectively (first
introduced as the Alu-O'Hara Public Safety Act).
Funding Policy
Benefits are funded on a pay-as-you-go basis.
45
Annual Required Contribution (ARC)
In accordance with GASB Statement No. 45, an actuarial study was prepared calculating the
postemployment healthcare costs as of September 30, 2009. The actuarial valuation estimated the
Unfunded Actuarial Accrued liability (UAAL) and an Annual Required Contribution (ARC) of $168,479.
The ARC represents a level of funding that if paid on an ongoing basis, is projected to cover normal cost
each year and amortize any unfunded liability amounts over a period not to exceed 30 years.
Annual OPEB Costs
Year
Ended
September 30
Annual
OPEB
Cost
Actual
Contribution
Percentage
Contributed
Net
OPEB
Obligation
2009 $168,479 $67,632 40.14% $100,847
Schedule of Funding Progress
Actuarial
Valuation
Date
Actuarial
Value of
Assets
(a)
Actuarial
Accrued
Liability
(AAL)
(b)
Unfunded
AAL
(UAAL)
(b)-(a)
Funded
Ratio
(a)/(b)
Covered
Payroll
(c)
UAAL as a
% of
Covered
Payroll
[(b)-(a)] /(e)
10/1/2008 - $1,597,598 $1,597,590% $4,767,200 33.51%
The schedule of funding progress presented as required supplementary information (RSI) above, present
multiyear trend information about whether the actuarial values of the plan assets are increasing or
decreasing over time relative to the AALs for benefits.
The Village's annual contribution is based on the actuarial valuation.
Actuarial Cost Method: Entry Age
Amortization Method: Level % Closed
Amortization Period: 30 Years
Asset Valuation Method: Unfunded
Actuarial Assumptions:
Investment rate of return 4.25% (includes general price inflation at 3.0%)
Projected salary increases 5.5% - 6.5%
Payroll growth assumptions 4.0%
Initial per capital cost trend rate 2.0%
46
XII. SUBSEQUENT EVENTS
Management evaluated subsequent events from October 1, 2009 through March 28, 2011, the date that the financial
statements were available to be published. No events were identified during this review of subsequent events that
required adjustment to or disclosure within these financial statements.
REQUIRED SUPPLEMENTARY INFORMATION
MIAMI SHORES VILLAGE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FISCAL YEAR ENDED SEPTEMBER 2009
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes:
Property taxes6,692,513$ 6,692,513$ 6,699,188$ 6,675$
Licenses and permits:
Business licenses - Village 77,000 77,000 71,832 (5,168)
Business licenses - County 22,000 22,000 29,114 7,114
Building permits 379,250 389,050 396,468 7,418
Certificate of reoccupancy 1,500 1,500 6,390 4,890
Other licenses and permits 47,500 72,500 167,872 95,372
Total licenses and permits527,250 562,050 671,676 109,626
Intergovernmental revenues:
State shared revenues:
State revenue sharing227,164 227,164 199,944 (27,220)
Local government half cent sales tax 674,742 674,742 588,888 (85,854)
Other 1,225 1,225 1,089 (136)
Total intergovernmental revenues903,131 903,131 789,921 (113,210)
Charges for services:
Physical environment25,000 25,000 72,601 47,601
Police extra duty135,000 135,000 241,181 106,181
Landscape maintenance19,901 19,901 19,901 -
Culture/recreation 904,254 904,254 976,574 72,320
Total charges for services 1,084,155 1,084,155 1,310,257 226,102
Fines and forfeitures:
Court fines and costs 70,000 70,000 111,230 41,230
School crossing guards 26,500 26,500 31,906 5,406
Other 110,500 249,202 352,367 103,165
Total fines and forfeitures 207,000 345,702 495,503 149,801
Miscellaneous:
Rents 25,000 25,000 99,924 74,924
Other 13,550 13,550 61,302 47,752
Total miscellaneous 38,550 38,550 161,226 122,676
Interest 135,000 135,000 30,487 (104,513)
Total revenues 9,587,599$ 9,761,101$ 10,158,258$ 397,157$
(Continued)
Budgeted Amounts
See notes to budgetary comparison schedule
47
MIAMI SHORES VILLAGE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
Variance with
Final Budget -
ActualPositive
Original Final Amounts (Negative)
Expenditures:
Current:
General government:
Village council8,780$ 8,780$ 5,289$ 3,491$
Village attorney 137,625 187,625 174,012 13,613
Village manager 237,008 237,008 229,992 7,016
Village clerk 153,080 153,080 137,649 15,431
Code enforcement 166,470 166,470 162,364 4,106
Building department 328,195 337,995 332,213 5,782
Planning and zoning174,270 183,720 143,670 40,050
Finance505,368 506,368 423,056 83,312
Other general government 753,745 757,579 521,179 236,400
Total general government 2,464,541 2,538,625 2,129,424 409,201
Public safety:
Law enforcement 5,409,003 5,341,600 4,987,261 354,339
School crossing guard37,792 38,052 38,050 2
Total public safety 5,446,795 5,379,652 5,025,311 354,341
Public works:
Parks426,413 433,824 393,239 40,585
Street maintenance522,268 522,268 472,943 49,325
Public works administration403,408 403,408 386,683 16,725
Recreation maintenance211,227 211,227 207,568 3,659
Total public services1,563,316 1,570,727 1,460,433 110,294
Culture and recreation:
Recreation1,950,618 1,860,618 1,861,983 (1,365)
Library 416,472 417,772 381,692 36,080
Total culture and recreation2,367,090 2,278,390 2,243,675 34,715
Total expenditures11,841,742 11,767,394 10,858,843 908,551
Deficiency of revenues over expenditures (2,254,143) (2,006,293) (700,585) 1,305,708
Other financing sources (uses)
Transfers in2,362,200 2,362,200 2,362,200 -
Transfers out(1,800,797) (2,089,239) (2,089,138) 101
Appropriations from prior year fund balance 1,692,740 1,733,332 - (1,733,332)
Total other financing sources (uses)2,254,143 2,006,293 273,062 (1,733,231)
Net change in fund balance- - (427,523) (427,523)
Fund balance, beginning of year - - 5,521,765 5,521,765
Fund balance, end of year -$ -$ 5,094,242$ 5,094,242$
FISCAL YEAR ENDED SEPTEMBER 2009
Budgeted Amounts
See notes to budgetary comparison schedule
48
Variance with
Final Budget
Budgeted AmountsActualPositive
Original Final Amounts (Negative)
Revenues:
Public service taxes2,147,200$ 2,147,200$ 2,263,799$ 116,599$
Total revenues2,147,200 2,147,200 2,263,799 116,599
Other financing uses
Transfers out(2,147,200) (2,147,200) (2,147,200) -
Total other financing uses(2,147,200) (2,147,200) (2,147,200) -
Net change in fund balance- - 116,599 116,599$
Fund balances, beginning- - -
Fund balances, ending-$ -$ 116,599$
MIAMI SHORES VILLAGE, FLORIDA
BUDGETARY COMPARISON SCHEDULE
MAJOR SPECIAL REVENUE FUND- EXCISE TAX
FISCAL YEAR ENDED SEPTEMBER 30, 2009
See notes to budgetary comparison schedule
49
50
MIAMI SHORES VILLAGE, FLORIDA
NOTE TO BUDGETARY COMPARISON SCHEDULE
FISCAL YEAR ENDED SEPTEMBER 30, 2009
Budgetary Information
Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States
of America. 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 the 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. B udgetary control over expenditures for the General Fund is
legally maintained at the departmental level. For all other funds it is legally maintained at the fund 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 a resolution.
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. There were supplemental appropriations in
the general fund totaling $214,094 during the fiscal year ended September 30, 2009 for funding outstanding
obligations and unanticipated expenses.
6. Unencumbered appropriations lapse at year end.
UAAL
as a
Actuarial Actuarial Percentage
Value Accrued Unfunded of
Actuarial of Liability AAL Funded Covered Covered
Valuation Assets (AAL) -(UAAL)Ratio Payroll Payroll
Date (a)(b)*(b-a)(a/b)(c)(b-a)/c
10/1/2007 8,989,754$ 8,474,105$ (515,649)$ 106.1%2,918,493$ -17.7%
10/1/2006 8,297,232 7,995,304 (301,928) 103.8%3,243,186 -9.3%
10/1/2005 8,173,688 7,680,175 (493,513) 106.4%2,786,865 -17.7%
10/1/2003 7,458,449 6,533,561 (924,888) 114.2%2,895,480 -31.9%
10/1/2002 7,038,780 5,959,283 (1,079,497) 118.1%2,871,867 -37.6%
10/1/2001 6,739,527 4,908,521 (1,831,006) 137.3%2,490,298 -73.5%
UAAL
as a
Actuarial Actuarial Percentage
Value Accrued Unfunded of
Actuarial of Liability AAL Funded Covered Covered
Valuation Assets (AAL) -(UAAL)Ratio Payroll Payroll
Date (a)(b)*(b-a)(a/b)(c)(b-a)/c
10/1/2007 11,320,831$ 15,114,334$ 3,793,503$ 74.9%1,683,969$ 225.3%
10/1/2006 10,332,878 14,573,821 4,240,943 70.9%1,630,878 260.0%
10/1/2005 10,151,153 13,679,903 3,528,750 74.2%1,424,759 247.7%
10/1/2003 10,238,221 10,983,149 744,928 93.2%1,514,310 49.2%
10/1/2002 10,112,018 10,279,369 167,351 98.4%1,425,992 11.7%
10/1/2001 10,090,680 9,726,578 (364,102) 103.7%1,453,248 -25.1%
*The annual required contribution (ARC) is calculated using the aggregate actuarial cost method. Information
in this schedule is calculated using the entry age actuarial cost method as a surrogate for the funding progress
of the plan.
Police Officer's Retirement System
PENSION TRUST FUNDS
MIAMI SHORES VILLAGE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS
General Employees' Retirement System
51
Fiscal
Year Annual
Ended Required Percentage
September 30,Contribution Contributed
2009 88,622$ 112%
2008 88,622 100%
2007 56,709 128%
2006 15,845 100%
2005 15,845 0%
2004 - 0%
Fiscal
Year Annual
Ended Required Percentage
September 30,Contribution Contributed
2009 700,455$ 100%
2008 739,887 100%
2007 594,211 100%
2006 297,812 100%
2005 279,522 100%
2004 197,498 100%
Police Officers' Retirement System
MIAMI SHORES VILLAGE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF EMPLOYER CONTRIBUTIONS
PENSION TRUST FUNDS
General Employees' Retirement System
52
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special revenue funds are used to account for specific revenue that is legally restricted to
expenditure for particular purposes.
Transportation Surtax – This fund accounts for the Village’s portion of the Miami-Dade County
one-half percent transportation surtax approved by voters in November 2002.
Local Option Gas Tax – 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.
Grants – This fund accounts for the use of specific designated resources related to grant
programs.
Hurricane – This fund accounts for hurricane related expenditures as well as FEMA
reimbursements. The fund is used to centralize financial activities required to restore the Village
to normal operations following a natural disaster.
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 Project Funds
Aquatic Facility – 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 completed
in 2005.
Lo
c
a
l
La
w
Tr
a
n
s
p
o
r
t
a
t
i
o
n
Op
t
i
o
n
En
f
o
r
c
e
m
e
n
t
Po
l
i
c
e
Su
r
t
a
x
Ga
s
T
a
x
Gr
a
n
t
s
Hu
r
r
i
c
a
n
e
Tr
a
i
n
i
n
g
Fo
r
f
e
i
t
u
r
e
Total
AS
S
E
T
S
Ca
s
h
a
n
d
c
a
s
h
e
q
u
i
v
a
l
e
n
t
s
22
9
,
8
0
9
$
37
4
,
8
8
0
$
16
,
9
8
5
$
31
4
,
9
8
1
$
12
,
6
4
1
$
235,642
$
1,184,938$
Ac
c
o
u
n
t
s
r
e
c
e
i
v
a
b
l
e
-
n
e
t
71
,
3
7
5
23
,
1
3
6
-
-
25
0
-
94,761
Du
e
f
r
o
m
o
t
h
e
r
f
u
n
d
s
-
-
-
-
Pr
e
p
a
i
d
i
t
e
m
s
-
-
-
-
-
-
-
T
o
t
a
l
a
s
s
e
t
s
30
1
,
1
8
4
$
39
8
,
0
1
6
$
16
,
9
8
5
$
31
4
,
9
8
1
$
12
,
8
9
1
$
235,642
$
1,279,699$
LI
A
B
I
L
I
T
I
E
S
Ac
c
o
u
n
t
s
p
a
y
a
b
l
e
a
n
d
a
c
c
r
u
e
d
l
i
a
b
i
l
i
t
i
e
s
6,
4
6
7
$
4,
0
3
0
$
-
$
83
,
3
8
6
$
-
$
1,530
$
95,413$
T
o
t
a
l
l
i
a
b
i
l
i
t
i
e
s
6,
4
6
7
4,
0
3
0
-
83
,
3
8
6
-
1,530
95,413
FU
N
D
B
A
L
A
N
C
E
S
Re
s
e
r
v
e
d
f
o
r
:
P
r
e
p
a
i
d
i
t
e
m
s
-
-
-
E
n
c
u
m
b
r
a
n
c
e
s
-
3
,
9
5
0
3,950
L
a
w
e
n
f
o
r
c
e
m
e
n
t
-
-
1
6
,
9
8
5
1
2
,
8
9
1
2
3
4
,
1
1
2
2
6
3
,
9
8
8
D
e
b
t
s
e
r
v
i
c
e
-
-
-
T
r
a
n
s
p
o
r
t
a
t
i
o
n
2
9
4
,
7
1
7
3
9
0
,
0
3
6
684,753
C
a
p
i
t
a
l
p
r
o
j
e
c
t
s
-
-
-
-
-
-
-
Un
r
e
s
e
r
v
e
d
a
n
d
u
n
d
e
s
i
g
n
a
t
e
d
-
-
-
23
1
,
5
9
5
-
-
231,595
T
o
t
a
l
f
u
n
d
b
a
l
a
n
c
e
s
29
4
,
7
1
7
39
3
,
9
8
6
16
,
9
8
5
23
1
,
5
9
5
12
,
8
9
1
234,112
1,184,286
T
o
t
a
l
l
i
a
b
i
l
i
t
i
e
s
a
n
d
f
u
n
d
b
a
l
a
n
c
e
s
30
1
,
1
8
4
$
39
8
,
0
1
6
$
16
,
9
8
5
$
31
4
,
9
8
1
$
12
,
8
9
1
$
235,642
$
1,279,699$
MI
A
M
I
S
H
O
R
E
S
V
I
L
L
A
G
E
,
F
L
O
R
I
D
A
CO
M
B
I
N
I
N
G
B
A
L
A
N
C
E
S
H
E
E
T
NO
N
M
A
J
O
R
G
O
V
E
R
N
M
E
N
T
A
L
F
U
N
D
S
SE
P
T
E
M
B
E
R
3
0
,
2
0
0
9
Sp
e
c
i
a
l
R
e
v
e
n
u
e
F
u
n
d
s
53
(Continued)
Debt
Service
Total
CharterNonmajor
Aquatic High SchoolGovernmental
GO Bonds Facility Construction Total Funds
ASSETS
Cash and cash equivalents754,980$ 266$ 73,996$ 74,262$ 2,014,180$
Investments11,227 - - - 11,227
Accounts receivable - net19,798 - - - 114,559
Due from other funds163,879 - - - 163,879
Prepaid items64,716 - - - 64,716
Total assets 1,014,600$ 266$ 73,996$ 74,262$ 2,368,561$
LIABILITIES
Accounts payable and accrued liabilities-$ -$ -$ -$ 95,413$
Total liabilities- - - - 95,413
FUND BALANCES
Reserved for:
Prepaid items64,716 - - - 64,716
Encumbrances- - - - 3,950
Law enforcement- - - - 263,988
Debt service949,884 - - - 949,884
Transportation- - - - 684,753
Capital projects- 266 73,996 74,262 74,262
Unreserved and undesignated- - - - 231,595
Total fund balances 1,014,600 266 73,996 74,262 2,273,148
Total liabilities and
fund balances1,014,600$ 266$ 73,996$ 74,262$ 2,368,561$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2009
Capital Projects
54
Lo
c
a
l
La
w
Tr
a
n
s
p
o
r
t
a
t
i
o
n
Op
t
i
o
n
En
f
o
r
c
e
m
e
n
t
Po
l
i
c
e
Su
r
t
a
x
Ga
s
T
a
x
Gr
a
n
t
s
Hu
r
r
i
c
a
n
e
Tr
a
i
n
i
n
g
Fo
r
f
e
i
t
u
r
e
Total
Re
v
e
n
u
e
s
:
P
r
o
p
e
r
t
y
t
a
x
e
s
-
$
-
$
-
$
-
$
-
$
-
$
-$
O
t
h
e
r
t
a
x
e
s
30
1
,
4
0
0
34
1
,
6
6
2
-
-
-
-
643,062
I
n
t
e
r
g
o
v
e
r
n
m
e
n
t
a
l
r
e
v
e
n
u
e
s
-
-
4,
8
8
8
83
,
3
8
6
-
-
88,274
M
i
s
c
e
l
l
a
n
e
o
u
s
-
-
-
-
3,
4
2
1
66,069
69,490
I
n
t
e
r
e
s
t
i
n
c
o
m
e
1,
0
6
2
3,
3
3
5
10
9
2,
4
4
3
12
6
1,884
8,959
T
o
t
a
l
r
e
v
e
n
u
e
s
30
2
,
4
6
2
34
4
,
9
9
7
4,
9
9
7
85
,
8
2
9
3,
5
4
7
67,953
809,785
Ex
p
e
n
d
i
t
u
r
e
s
:
C
u
r
r
e
n
t
:
G
e
n
e
r
a
l
g
o
v
e
r
n
m
e
n
t
-
$
-
$
2
,
3
8
0
$
8
3
,
3
8
6
$
-
$
-
$
8
5
,
7
6
6
$
P
u
b
l
i
c
s
a
f
e
t
y
-
-
-
-
3,
2
5
5
21,673
24,928
P
u
b
l
i
c
w
o
r
k
s
18
5
,
3
4
1
10
7
,
3
2
6
-
-
-
292,667
C
a
p
i
t
a
l
o
u
t
l
a
y
-
-
-
-
-
4,493
4,493
D
e
b
t
s
e
r
v
i
c
e
:
P
r
i
n
c
i
p
a
l
-
-
-
-
-
-
-
I
n
t
e
r
e
s
t
-
-
-
-
-
-
-
T
o
t
a
l
e
x
p
e
n
d
i
t
u
r
e
s
18
5
,
3
4
1
10
7
,
3
2
6
2,
3
8
0
83
,
3
8
6
3,
2
5
5
26,166
407,854
Ex
c
e
s
s
(
d
e
f
i
c
i
e
n
c
y
)
o
f
r
e
v
e
n
u
e
s
o
v
e
r
(
u
n
d
e
r
)
e
x
p
e
n
d
i
t
u
r
e
s
b
e
f
o
r
e
o
t
h
e
r
f
i
n
a
n
c
i
n
g
s
o
u
r
c
e
s
11
7
,
1
2
1
23
7
,
6
7
1
2,
6
1
7
2,
4
4
3
29
2
41,787
401,931
Ot
h
e
r
f
i
n
a
n
c
i
n
g
s
o
u
r
c
e
s
:
T
r
a
n
s
f
e
r
s
(
o
u
t
)
(
7
0
7
,
7
9
9
)
(
9
0
7
,
7
0
6
)
-
-
-
-
(
1
,
6
1
5
,
5
0
5
)
T
r
a
n
s
f
e
r
s
i
n
-
-
-
-
-
-
-
T
o
t
a
l
o
t
h
e
r
f
i
n
a
n
c
i
n
g
s
o
u
r
c
e
s
(
u
s
e
s
)
(7
0
7
,
7
9
9
)
(9
0
7
,
7
0
6
)
-
-
-
-
(1,615,505)
Ne
t
c
h
a
n
g
e
i
n
f
u
n
d
b
a
l
a
n
c
e
(5
9
0
,
6
7
8
)
(6
7
0
,
0
3
5
)
2,
6
1
7
2,
4
4
3
29
2
41,787
(1,213,574)
Fu
n
d
b
a
l
a
n
c
e
s
,
b
e
g
i
n
n
i
n
g
88
5
,
3
9
5
1,
0
6
4
,
0
2
1
14
,
3
6
8
22
9
,
1
5
2
12
,
5
9
9
192,325
2,397,860
Fu
n
d
b
a
l
a
n
c
e
s
,
e
n
d
i
n
g
29
4
,
7
1
7
$
39
3
,
9
8
6
$
16
,
9
8
5
$
23
1
,
5
9
5
$
12
,
8
9
1
$
234,112
$
1,184,286$
FI
S
C
A
L
Y
E
A
R
E
N
D
E
D
S
E
P
T
E
M
B
E
R
3
0
,
2
0
0
9
MI
A
M
I
S
H
O
R
E
S
V
I
L
L
A
G
E
,
F
L
O
R
I
D
A
CO
M
B
I
N
I
N
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A
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E
M
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T
O
F
R
E
V
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N
U
E
S
,
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X
P
E
N
D
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R
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S
AN
D
C
H
A
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G
E
S
I
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F
U
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B
A
L
A
N
C
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S
NO
N
M
A
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O
R
G
O
V
E
R
N
M
E
N
T
A
L
F
U
N
D
S
Sp
e
c
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55
(Continued)
Debt
Service
Total
CharterNonmajor
Aquatic High SchoolGovernmental
GO Bonds Facility Construction Total Funds
Revenues:
Property taxes576,558$ -$ -$ -$ 576,558$
Other taxes- - - - 643,062
Intergovernmental revenues- - - - 88,274
Miscellaneous- - - - 69,490
Interest income8,479 143 881 1,024 18,462
Total revenues585,037 143 881 1,024 1,395,846
Expenditures:
Current:
General government6,494$ -$ -$ -$ 92,260$
Public safety - - - - 24,928
Public works- - - - 292,667
Capital outlay- - 150 150 4,643
Debt service:
Principal 431,763 - - - 431,763
Interest 473,831 - - - 473,831
Total expenditures912,088 - 150 150 1,320,092
Excess (deficiency) of revenues
over (under) expenditures before
other financing sources(327,051) 143 731 874 75,754
Other financing sources:
Transfers (out)- - - - (1,615,505)
Transfers in489,581 - - - 489,581
Total other financing sources (uses)489,581 - - - (1,125,924)
Net change in fund balance162,530 143 731 874 (1,050,170)
Fund balances, beginning852,070 123 73,265 73,388 3,323,318
Fund balances, ending1,014,600$ 266$ 73,996$ 74,262$ 2,273,148$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
Capital Projects
56
Variance with
Final Budget
Budgeted AmountsActualPositive
Original Final Amounts (Negative)
Revenues:
Property taxes576,593$ 576,593$ 576,558$ (35)$
Interest income- - 8,479 8,479
Total revenues576,593 576,593 585,037 8,444
Expenditures:
Current:
General government 8,700 8,700 6,494 2,206
Debt service:
Principal461,850 461,850 431,763 30,087
Interest 454,492 454,492 473,831 (19,339)
Total expenditures925,042 925,042 912,088 12,954
(Deficiency) of revenues over expenditures
before other financing sources (348,449) (348,449) (327,051) 21,398
Other financing sources
Transfers in394,499 394,499 489,581 95,082
Transfers out(46,050) (46,050) - 46,050
Total other financing sources348,449 348,449 489,581 141,132
Net change in fund balance- - 162,530 162,530$
Fund balances, beginning- - 852,070
Fund balances, ending-$ -$ 1,014,600$
MIAMI SHORES VILLAGE, FLORIDA
SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES-BUDGET AND ACTUAL NONMAJOR GOVERNMENTAL FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
Debt Service Fund
57(Continued)
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58
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.
Risk Fleet
Management Maintenance
Fund Fund Total
ASSETS
Current assets:
Cash and cash equivalents727,384$ 805,066$ 1,532,450$
Accounts receivable - net 26,519 297 26,816
Inventories- 105,214 105,214
Prepaid items164,104 - 164,104
Total current assets918,007 910,577 1,828,584
Capital assets:
Capital assets not being depreciated- 7,127 7,127
Capital assets being depreciated, net - 642,021 642,021
Total noncurrent assets- 649,148 649,148
Total assets 918,007$ 1,559,725$ 2,477,732$
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 44,933$ 28,748$ 73,681$
Due to other funds- 163,879 163,879
Compensated absences- 9,455 9,455
Capital lease- 99,391 99,391
Claims payable41,000 - 41,000
Total current liabilities85,933 301,473 387,406
Noncurrent liabilities:
Compensated absences- 29,935 29,935
Capital lease- 262,054 262,054
Claims payable299,000 - 299,000
Total noncurrent liabilities299,000 291,989 590,989
Total liabilities384,933 593,462 978,395
NET ASSETS
Invested in capital assets, net of related debt - 287,703 287,703
Unrestricted533,074 678,560 1,211,634
Total net assets533,074$ 966,263$ 1,499,337$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2009
59
Risk Fleet
Management Maintenance
Fund Fund Total
Revenues:
Charges for services1,316,498$ 1,252,480$ 2,568,978$
Operating expenses:
Administrative and general 111,664$ 428,186$ 539,850$
Personnel expenses- 259,685 259,685
Depreciation- 100,355 100,355
Insurance premiums776,507 106,831 883,338
Insurance claims185,939 11,982 197,921
Total operating expenses1,074,110 907,039 1,981,149
Operating income242,388 345,441 587,829
Non-operating revenues (expenses):
Interest income4,598 1,531 6,129
Interest expense- (12,827) (12,827)
Total non-operating revenues (expenses)4,598 (11,296) (6,698)
Change in net assets246,986 334,145 581,131
Net assets, beginning286,088 632,118 918,206
Net assets, ending533,074$ 966,263$ 1,499,337$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET ASSETS
INTERNAL SERVICE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
60
RiskFleet
ManagementMaintenance
Fund Fund Total
Cash flows from operating activities:
Cash received from customers, governments and other funds1,296,619$ 1,252,183$ 2,548,802$
Cash paid to suppliers(1,238,717) (787,694) (2,026,411)
Cash paid for employees- (255,190) (255,190)
Net cash provided by operating activities57,902 209,299 267,201
Cash flows from capital related financing activities:
Acquisition and construction of fixed assets- (65,271) (65,271)
Principal retirements of capital debt - (96,426) (96,426)
Interest paid on capital debt - (12,827) (12,827)
Net cash (used in) capital and related financing activities- (174,524) (174,524)
Cash flows from investing activities:
Interest and other income4,598 1,531 6,129
Net cash provided by investing activities4,598 1,531 6,129
Net increase in cash and cash equivalents62,500 36,306 98,806
Cash and cash equivalents, October 1664,884 768,760 1,433,644
Cash and cash equivalents, September 30727,384$ 805,066$ 1,532,450$
Reconciliation of operating income to net cash provided by
operating activities:
Operating income242,388$ 345,441$ 587,829$
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation - 100,355 100,355
Change in assets and liabilities:
(Increase) decrease in:
Accounts receivable(19,879) (297) (20,176)
Inventories- (20,589) (20,589)
Prepaids(164,104) - (164,104)
Increase (decrease) in:
Accounts payable and accrued liabilities (503) (329,359) (329,862)
Compensated absences- 4,495 4,495
Due to other funds- 109,253 109,253
Total adjustments(184,486) (136,142) (320,628)
Net cash provided by operating activities57,902$ 209,299$ 267,201$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
61
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.
Agency Fund:
Police Insurance Trust Fund – To accumulate resources on behalf of police personnel to
partially cover retirement health insurance.
General
Police Employee's
PensionPension
Trust Trust Total
ASSETS
Cash and cash equivalents297,045$ 167,972$ 465,017$
Receivables:
Accrued interest and dividends43,151 26,612 69,763
Total receivables43,151 26,612 69,763
Investments, at fair value
U.S. Government securities2,691,553 1,574,596 4,266,149
Corporate bonds1,231,231 840,328 2,071,559
Mutual funds- equity1,029,049 791,695 1,820,744
Common stocks5,680,803 4,459,742 10,140,545
Total investments10,632,636 7,666,361 18,298,997
Total assets10,972,832 7,860,945 18,833,777
LIABILITIES
DROP liability102,108 98,098 200,206
Total liabilities102,108 98,098 200,206
NET ASSETS
Held in trust for pension benefits10,870,724$ 7,762,847$ 18,633,571$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF FIDUCIARY NET ASSETS
PENSION TRUST FUNDS
SEPTEMBER 30, 2009
62
General
Police Employee's
PensionPension
Trust Trust Total
ADDITIONS
Contributions:
Employer 779,345$ 99,500$ 878,845$
Employees177,995 184,433 362,428
State of Florida66,924 - 66,924
Total contributions1,024,264 283,933 1,308,197
Investment income:
Net depreciation in fair value of investments(62,915) (95,189) (158,104)
Interest and dividend income 264,148 194,839 458,987
Total investment income 201,233 99,650 300,883
Less investment expenses89,204 64,623 153,827
Net investment income112,029 35,027 147,056
Total additions1,136,293 318,960 1,455,253
DEDUCTIONS
Benefits paid790,346 387,257 1,177,603
Changes in net assets345,947 (68,297) 277,650
Net assets- beginning10,524,777 7,831,144 18,355,921
Net assets- ending10,870,724$ 7,762,847$ 18,633,571$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
PENSION TRUST FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
63
Balance Balance
September 30, September 30,
2008 Additons Deductions 2009
ASSETS
Cash and cash equivalents130,093$ 11,601$ 3,880$ 137,814$
LIABILITIES
Deposits held in trust 130,093$ 7,878$ 157$ 137,814$
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
SEPTEMBER 30, 2009
POLICE INSURANCE TRUST AGENCY FUND
64
COMPLIANCE SECTION
65
INDEPENDENT AUDITORS’ REPORT ON
INTERNAL CONTROL OVER FINANCIAL REPORTING AND
ON COMPLIANCE AND OTHER MATTERS BASED
ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
Honorable Mayor and Members of the Village Council
Miami Shores Village, Florida
We have audited the financial statements of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of Miami Shores Village, Florida (the Village) as of and for the
fiscal year ended September 30, 2009 which collectively comprise the Village’s basic financial statements, and have
issued our report thereon dated March 28, 2011. We conducted our audit in accordance with auditing standards
generally accepted in the United States of America and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered 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 Village's internal control over financial reporting.
Accordingly, we do not express an opinion on the effectiveness of Village's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will
not be prevented, or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting
that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in
internal control over financial reporting that we consider to be material weaknesses, as defined above.
4649 PONCE DE LEON BLVD.
SUITE 404
CORAL GABLES, FL 33146
TEL: 305-662-7272
FAX: 305-662-4266
ACC-CPA.COM
66
Honorable Mayor and Members of the Village Council
Miami Shores Village, Florida
Compliance and Other Matters
As part of obtaining reasonable assurance about whether 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 matters that are required to be reported under Government Auditing Standards.
Pursuant to Chapter 119, Florida Statues, this report is public record and its distribution is not limited. Auditing
standards generally accepted in the United States of America require us to indicate that this report is intended solely
for the information and use of the Village Council and management of Miami Shores Village and the State of Florida
Auditor General, and is not intended to be and should not be used by anyone other than these parties.
Alberni Caballero & Company, LLP
March 28, 2011
Coral Gables, Florida
67
MANAGEMENT LETTER REQUIRED BY SECTION 10.550
OF THE RULES OF THE AUDITOR GENERAL OF THE
STATE OF FLORIDA
Honorable Mayor and Members of the Village Council
Miami Shores Village, Florida
We have audited the financial statements of Miami Shores Village, Florida, as of and for the fiscal year ended
September 30, 2009, and have issued our report thereon dated March 28, 2011.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America,
the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. We have issued our Independent Auditors’ Report on Internal Control over financial
reporting and on Compliance and Other Matters. Disclosures in that report, which are dated March 28, 2011, 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, this letter is required to include
the following information.
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions
have been taken to address significant findings and recommendations made in the preceding annual financial
report. An update to findings and/or recommendations reported in the preceding annual financial report is
included in the summary schedule of prior year audit findings.
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 Miami Shores Village, Florida 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 we have no recommendations to report.
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.
Section 10.554(1)(i)5., Rules of the Auditor General, provides that the auditor may, based on professional
judgment, report the following matters that have an inconsequential effect on financial statements, considering
both quantitative and qualitative factors: (1) violations of provisions of contracts or grant agreements, fraud, illegal
acts, or abuse, and (2) Deficiencies in internal control that are not significant deficiencies. In connection with our
audit, we did not have any such findings.
4649 PONCE DE LEON BLVD.
SUITE 404
CORAL GABLES, FL 33146
TEL: 305-662-7272
FAX: 305-662-4266
ACC-CPA.COM
68
Honorable Mayor and Members of the Village Council
Miami Shores Village, Florida
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 the management
letter, unless disclosed in the notes to the financial statements. The Village was incorporated in accordance
with the laws of the State of Florida Chapter 165 of 1963. 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 government 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 Miami Shores Village, Florida 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, we determined that the annual financial report for the
Miami Shores Village, Florida for the fiscal year ended September 30, 2009, 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, 2009. In connection with our audit,
we determined that these two reports were in agreement.
Pursuant to Sections 10.554(1)(i)7.c. and 10.556(7), Rules of the Auditor General, we applied financial
condition assessment procedures. It is management's responsibility to monitor the Village’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.
Pursuant to Chapter 119, Florida Statues, this management letter is public record and its distribution is not limited.
Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended
solely for the information and use of management, and the State of Florida Auditor General, and is not intended to be
and should not be used by anyone other than these parties.
We wish to thank Miami Shores Village, Florida, and the personnel associated with it, for the opportunity to be of
service to them in this endeavor as well as future engagements and the courtesies extended to us.
Alberni Caballero & Company, LLP
March 28, 2011
Coral Gables, FL
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MIAMI SHORES VILLAGE, FLORIDA
SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS
FISCAL YEAR ENDED SEPTEMBER 30, 2009
FINANCIAL STATEMENT FINDINGS
Material Weaknesses
2008-01 Override of Controls
Condition
During our review of internal controls, we noted that bank reconciliations and journal entries were prepared by the
Village's comptroller, but were not reviewed by an appropriate level of management. Furthermore, we noted that many
journal entries lacked supporting documentation.
During the year, it was learned that cash collected by the Village from various departments was not being deposited into
the Village's bank account. The Village's comptroller, in May 2010, was arrested and charged. The investigation is
ongoing.
Current Year Status
The Village has strengthened its internal controls over bank reconciliations and journal entries. This condition will not be
repeated.
2008-02 Prior Period Adjustment Criteria
Condition
During the 2008 fiscal year, the Village determined that certain transactions relating to capital assets were not properly
recorded in prior years. It was noted that certain capital assets totaling $391,852 and the related accumulated
depreciation was not properly recorded in prior years. Furthermore, accumulated depreciation was adjusted for
$1,082,434 as a result of depreciation expense being improperly calculated on certain other capital assets in prior years.
The net effect of these adjustments was an increase in net assets of $1,474,086.
Current Year Status
There were not prior period adjustments recorded during the 2009 audit. This condition will not be repeated.
Noncompliance Matters
2008-03 Excess of Expenditures and Other Financing Uses Over Appropriations Criteria
Criteria
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 the Excise Tax Fund exceeded appropriations by $25,861.
Current Year Status
There were no excess expenditures over appropriations in 2009. This condition will not be repeated.
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MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS AND RESPONSES
FISCAL YEAR ENDED SEPTEMBER 30, 2009
FINANCIAL STATEMENT FINDINGS AND RECOMMENDATIONS
NONE