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2011 MIAMI SHORES VILLAGE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 PREPARED BY THE FINANCE DEPARTMENT MIAMI SHORES VILLAGE, FLORIDA TABLE OF CONTENTS Page I. INTRODUCTORY SECTION (Unaudited) Letter of Transmittal i-v GFOA Certificate of Achievement vi List of Elected Officials vii List of Appointed Officials viii Organizational Chart ix II. FINANCIAL SECTION 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 Special Revenue Funds 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 MIAMI SHORES VILLAGE, FLORIDA TABLE OF CONTENTS II. FINANCIAL SECTION 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 III. STATISTICAL SECTION Net Assets by Component 65 Changes in Net Assets 66-67 Fund Balances for Governmental Funds Changes in Fund Balances of Governmental Funds 68 69 General Governmental and Excise Tax Revenues by Source 70 Assessed Value and Actual Value of Taxable Property 71 Property Tax Rates Direct and Overlapping Governments 72 Principal Property Taxpayers 73 Operating Property Tax Levies and Collections 74 Ratios of Outstanding Debt By Type 75 Direct and Overlapping Governmental Activities Debt 76 Legal Debt Margin Information 77 Demographic and Economic Statistics 78 Principal Employers Located in Miami Dade County 79 Village Employees by Function 80 IV. COMPLIANCE SECTION Independent Auditors’ Report on Internal Controls over Financial Reporting 81-82 and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Management Letter in Accordance with the Rules of the Auditor General of the 83-84 State of Florida Schedule of Findings and Responses 85 INTRODUCTORY SECTION -i- Miami Shores Village 10050 N.E.2nd Avenue Miami Shores, Florida 33138 Tel: (305) 795.2207 Fax: (305) 756.8972 March 26, 2012 The Mayor and Members of the Village Council 10050 Northeast Second Avenue Miami Shores, Florida 33138-2382 Subject: FY 2010-11 Financial Report (CAFR) To the Mayor and Members of the Village Council: In compliance with Florida State Statute Chapter §11.45, Chapter §10.550 of the Rules of the Auditor General, and Chapter 34(3) of the Miami Shores Village Code of Ordinances, we are pleased to submit for your review and consideration the Miami Shores Village Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2011. The financial statements included in this report conform to generally accepted accounting principles in the United States of America (“GAAP”) as prescribed by the Governmental Accounting Standards Board (“GASB”). The responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the Village. This report consists of management’s representations concerning the financial condition of Miami Shores Village (“The Village”). Consequently, management assumes full responsibility for the complete presentation, reliability, and accuracy of all of the information presented in this report. To provide a reasonable basis for making these representations, the Village’s management has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft or misuse and to compile sufficient reliable information for the preparation of the Village’s financial statements in conformance with accounting principles generally accepted in the United States. Because the cost of internal controls should not outweigh their benefits, the Village’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The financial statements have been audited by Alberni, Caballero & Company, L.L.P. Certified Public Accountants. The independent auditor has issued an unqualified opinion that this report fairly represents the financial position of the Village in conformity with GAAP. Their audit was in accordance with auditing standards generally accepted in the United States, Government Auditing Standards issued by the Comptroller General of the United States and the Rules of the Auditor General, State of Florida. The goal of the independent auditor is to provide reasonable assurance that the financial statements of the Village for the fiscal year ended September 30, 2011 are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the financial statements of Miami Shores Village for the fiscal year ended September 30, 2011 are fairly presented in conformity with generally accepted accounting principles (GAAP). The contents of the CAFR have been influenced by compliance with GASB pronouncements, including Statement 34 that has required the preparation of new government-wide financial statements on a full accrual basis of accounting for all funds as well as Management’s Discussion and Analysis (MD&A). The MD&A can be found immediately following the independent auditors’ report. FY 2010-11 Financial Report March 26, 2012 -ii- PROFILE OF THE GOVERNMENT Miami Shores Village, a Florida municipal corporation incorporated in 1932, is located in Northeast Miami-Dade County. The Village has a year-round population estimated at 10,500 residents living within the 2.8 square mile jurisdiction. The Village begins at Biscayne Bay on the east and goes west to Northwest Second Avenue. The north and south boundaries are 115th Street and 91st Street respectively. The Village is a residential-based community with two (2) commercial districts located on Second Avenue and Biscayne Boulevard. With limited commercial presence, new growth will likely be limited to redevelopment. The Village is almost entirely built out, which is reflected in its below average growth in full value, decreasing 11% from 2006 to 2011; and population increasing 1.1% from 2000-2011. Wealth levels in the Village are average, with per capita income at $26,134 or 66% of the state, and median family income at $64,963 or 146% of the state. Operating under a Council-Manager form of government, the Council consists of five members elected at large. The Mayor is chosen by each of the newly formed councils. Historically, the individual receiving the highest number of votes during the election is chosen as the Mayor and the Vice-Mayor has received the second highest. Both the Mayor and Vice-Mayor serve four (4) year terms, two as mayor/vice-mayor and two as regular council members. The Village Council is responsible for the selection and appointment of the Village Manager, Village Clerk and Village Attorney. The Village Manager is responsible for engaging all department heads and their subordinates. Miami Shores Village provides a full range of municipal services including recreation and culture, public safety through the police, public works and general administrative services for its residents and businesses. For the fiscal year ended September 30, 2011, no legally separate authorities or agencies operated under the auspices of the Village; therefore, no additional financial information will be incorporated into these statements. FACTORS AFFECTING FINANCIAL CONDITIONS The information presented in the Village’s financial statements primarily focus on the financial position at the end of each fiscal year as measured by existing resources and claims against those resources. To better understand the Village’s financial condition, readers should focus on both existing and future resources and potential claims (or liabilities) against those resources. This broader concept is used to assess the financial condition of Miami Shores, reflecting the current financial position as well as the prospects that today’s financial condition will improve or deteriorate. To achieve this objective, the Village uses a wide-range of information including local economic conditions and outlook; long-term debt management; capital construction and investments; cash management / investments; and, of course, risk controls. ECONOMIC CONDITION AND OUTLOOK During the past few years, various State tax initiatives have been passed in order to lower property taxes throughout the State. This, coupled with the significant decrease in assessed values due to the downturn in the economy, has resulted in a reduction in the property taxes levied in 2011. Actual taxes levied by the Village in 2011 reflected a drop of $616,000 as compared with taxes levied in 2010. It is anticipated that assessed values within the Village will begin to stabilize in the 2012 fiscal year with an increase in assessed values in future years. Although the Village anticipates increases in assessed valuation in future years, the impact of these increases will not be sufficient to make up for prior loss in values. As such, Management must still strive to control expenditures. In order to continue to provide the high level of services which has become a hallmark of the community, Management has taken steps to control costs by closely monitoring purchasing procedures, purchasing only as required, and not filling vacant positions when possible. Revenues have been reviewed and monitored for collection. The collection of sanitation and storm water fees have been outsourced to the County via the property tax bills to maximize collection while continuing to actively collect the existing receivable. Through these efforts, the general fund surplus increased $1.4 million dollars in 2011, increasing the unassigned surplus to $7.6 million. FY 2010-11 Financial Report March 26, 2012 -iii- This surplus will enable the Village to continue to provide the same level of services to the residents in the upcoming fiscal years. In December of 2010, Moody’s Investors Service affirmed the Village’s A1 rating with expectation that the financial position will remain stable in the near term. The A1 rating reflects the Village’s strong financial position with healthy reserve levels, modest tax base with above average socioeconomic indices, and a manageable debt profile with no additional borrowing plans. The increasingly stable financial operations are a result of management’s commitment to conservative budgeting. FINANCIAL INFORMATION Accounting Control Management is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the Village are protected from loss, theft or misuse, and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles in the United States of America. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by management. As a recipient of federal, state and local financial assistance, the government is also responsible for ensuring that an adequate internal control structure is in place to ensure and document compliance with applicable laws and regulations related to these programs. This internal control structure is subject to periodic evaluation by management. In addition, the Village maintains extensive budgetary controls. The objective of these controls is to ensure compliance with policy and implementation procedures embodied in the annual appropriated budget approved by Village Council. The level of budgetary control (i.e. the level at which expenditures cannot legally exceed the appropriated amount) is the department level within each fund. The Village also maintains an encumbrance accounting system. The Village’s accounting system is organized on a fund basis. A fund is defined as an independent fiscal and accounting entity with a self-balancing set of accounts. The types of funds used are generally determined by the Village Council, upon the recommendations of the Village Manager and the Finance Director, which are based upon established and accepted accounting policies and procedures as well as the number of funds required. Budgetary Control Florida State Statute §200.065 requires that all municipal governments prepare, approve, adopt and execute an annual budget for such funds as may be required by law or by sound fiscal practices. In compliance with this Statute as well as other state regulatory items, the Village adopts an annual operating budget into which funds are either formally appropriated by resolution or non-appropriated in nature, depending upon the fund (i.e. – general, special revenue, debt service, enterprise, internal service or trust funds). However, in practice, all funds by those identified as fiduciary in nature, receive annual budgets and corresponding appropriations. The annual budget serves as a foundation for the financial planning, guidance and control of the Village. Funds which require legal appropriations cannot exceed their original and amended budgets. All departments are required to annually submit requests for appropriations to the Village Manager by June 1st of each year. The Village Manager then uses those requests as the base from which the annual operating and capital budgets are developed. The budget is presented to the Village Council following the release of the tentatively assessed property values in early July of each year. A workshop is held in July during which council members are free to address department staff with general and specific issues proposed in the budget. Following the summer workshop, the Council adopts a resolution which sets the tentative millage rates which are subsequently sent to the County using Florida Form FY 2010-11 Financial Report March 26, 2012 -iv- DR420 for inclusion on the Proposed Tax Bills. Two public hearings are held in September of each year during which members of the public are offered the opportunity to provide insight and solicit information regarding the operations of their municipality. After the second public hearing, resolutions presenting the final operating and debt service millage rates along with corresponding budgets for the fiscal year and are subsequently adopted by the Village Council. The annual budget is adopted at the fund and department level. Line-item transfers are permitted with the approval of the Finance Director and Village Manager; however, changes to the bottom line of department or fund totals require council approval and are executed by resolution. Budget to actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. As shown by the statements and schedules included in the financial section of this report, the Village continues to meet its responsibility for sound financial management. Cash Management Miami Shores Village is charged with the security of the Village’s funds and assets with the goal of maximizing return on surplus or idle cash. Cash management policies follow the regulations defined by the laws of the State of Florida. Per Council direction, the Village’s primary investment instruments for Fiscal year 2010-11 were Qualified Public Depositories and the State Board of Administration’s (SBA) Local Government Investment Pool. The principal focus of cash management is to first insure the safety of the Village’s cash and then maximize the return on the Village’s investments. The Village has no long-term investments. All investments are subject to immediate access. During fiscal year 2011, the Village earned $38,691 in investment income, as compared to $41,878 in fiscal year 2010. The reduction in investment income was due lower interest rates available to the Village. Risk Management The Village purchases general liability, property, casualty insurance, and workers’ compensation coverages through the Florida League of Cities. The Village is continually reviewing risk exposures and determining the most cost effective method of mitigating those exposures. LONG-TERM FINANCIAL PLANNING The Village’s 2010-2011 Annual Budget included funding of $1.5 million for the completion of a Fleet Maintenance Building. This project began major construction during fiscal year 2011 and is anticipated to be completed during fiscal year 2012. The Village is maintaining financial stability with fiscal management controls by constantly reviewing and monitoring staff levels, and by comparing budget appropriations to actual expenditures, and estimated revenues to actual revenues. The Village maintains a level of revenue sufficient to meet operating expenditures. During the year, the Village also monitors all user fees to ensure that costs are being matched while at the same time remaining competitive in the marketplace. Certificate of  Achievement  for Excellence  in Financial  Reporting  Presented to  Miami Shores Village,  Florida  For its Comprehensive Annual   Financial Report  for the Fiscal Year Ended   September 30, 2010  A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting.      President    Executive Director          -vi- Mayor Jim McCoy Vice Mayor Hunt Davis Councilman Al Davis Councilman Stephen Loffredo Councilman Jesse Walters MIAMI SHORES VILLAGE, FLORIDA LIST OF ELECTED OFFICIALS SEPTEMBER 30, 2011 -viii- MIAMI SHORES VILLAGE, FLORIDA LIST OF APPOINTED OFFICIALS SEPTEMBER 30, 2011 APPOINTED OFFICIALS Village Manager ....................................................................................................Thomas J. Benton Village Clerk .............................................................................................. Barbara A. Estep, MMC Village Attorney ....................................................................................................... Richard Sarafan DEPARTMENT HEADS Building Director ...................................................................................................... Norman Bruhn Finance Director............................................................................................... Holly Hugdahl, CPA Library Director ....................................................................................................... Elizabeth Esper Planning & Zoning Director ...................................................................................David Dacquisto Chief of Police ............................................................................................................. Kevin Lystad Public Works Director .................................................................................................... Scott Davis Recreation Director .......................................................................................................... Jerry Estep VILLAGE AUDITORS Alberni Caballero & Company, LLP Certified Public Accountants and Consultants -ix- MIAMI SHORES VILLAGE, FLORIDA ORGANIZATION CHART SEPTEMBER 30, 2011 MAYOR & COUNCIL MAYOR - JIM MCCOY VICE MAYOR - HUNT DAVIS COUNCILMAN - AL DAVIS COUNCILMAN - STEPHEN LOFFREDO COUNCILMAN - JESSE WALTERS VILLAGE CLERK BARBARA A. ESTEP, MMC VILLAGE ATTORNEY RICHARD SARAFAN, ESQ. VILLAGE MANAGER THOMAS J. BENTON BUILDING DIRECTOR NORMAN BRUHN FINANCE DIRECTOR HOLLY HUGDAHL, CPA PLANNING & ZONING DIRECTOR DAVID DACQUISTO PUBLIC WORKS DIRECTOR SCOTT DAVIS CHIEF OF POLICE KEVIN LYSTAD DIRECTOR OF LIBRARY SERVICES ELIZABETH ESPER RECREATION DIRECTOR JERRY ESTEP FINANCIAL SECTION 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, 2011, 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 Miami Shores Village, Florida as of September 30, 2011, 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 20, 2012 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. Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 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 the Village’s basic financial statements. The introductory section, combining non-major fund financial statements, schedules of funding progress and employer contributions and statistical tables are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining non-major fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing an reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section, schedules of funding progress and employer contributions and statistical tables have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Alberni Caballero & Company, LLP Alberni Caballero & Company, LLP Coral Gables, Florida March 20, 2012 MANAGEMENT’S DISCUSSION AND ANALYSIS (Required Supplementary Information) -3- 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, 2011. Financial Highlights for Fiscal Year 2011  At September 30, 2011, the Miami Shores Village assets exceeded its liabilities by $30.5 million (net assets). Of this amount, $14.2 million was invested in capital assets, net of related debt. Additionally, $4 million was restricted by law, agreements, debt covenants or for capital projects. The Village had unrestricted net assets of $12.3 million at September 30, 2011 an increase of $900 thousand or 8% as compared with the prior year.  During the fiscal year 2011, net assets increased by $2 million. Of this increase, $1.8 million was in governmental activities and the remaining increase of $200 thousand was in business-type activities.  At September 30, 2011, the Miami Shores Village’s governmental funds had fund balances totaling $13.5 million. Of the total fund balance, approximately $7.6 million or 56% was unassigned and approximately $1.8 million or 13.4% was committed for future capital projects and encumbrances. The restricted fund balance of approximately $4 million, or 29.5%, is related to funds restricted by the contributing agency. The net change in fund balances during the year was an increase of $1 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. 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. -4- 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. 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. -5- 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 thousands) Total Total primary percentage Governmental activities Business-type activities government Change 2011 2010 2011 2010 2011 2010 2011-2010 Current and other assets $ 16,267 $ 15,579 $ 3,220 $ 2,895 $ 19,487 $ 18,474 5.4% Capital assets 21,310 21,105 1,924 2,044 23,234 23,149 0.4% Total assets 37,577 36,684 5,144 4,939 42,721 41,623 2.6% Long-term liabilities outstanding 9,764 10,261 83 78 9,848 10,339 -4.7% Other liabilities 1,641 2,055 752 784 2,392 2,839 -15.7% Total liabilities 11,405 12,316 835 862 12,240 13,178 -7.1% Invested in capital assets, net of related debt 12,280 11,508 1,924 2,044 14,204 13,552 4.8% Restricted 3,976 3,509 - - 3,976 3,509 13.3% Unrestricted 9,916 9,351 2,385 2,033 12,301 11,384 8.0% Total net assets $ 26,172 $ 24,368 $ 4,309 $ 4,077 $ 30,481 $ 28,445 7.1% Net assets may be used to assess the financial position of the Village. The Village’s combined net assets as of September 30, 2011 were $30.5 million. Approximately 47%, or $14.2 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, $4 million are restricted net assets and are subject to external restrictions on how they may be spent. At September 30, 2011, Miami Shores Village had unrestricted net assets of $12.3 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. -6- 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 thousands) Total Total primary percentage Governmental activities Business-type activities government Change 2011 2010 2011 2010 2011 2010 2010-2011 Revenues: Program revenues: Charges for services $ 3,887 $ 3,311 $ 2,914 $ 3,133 $6,801 $6,444 5.5% Operating grants & Contributions 217 96 - - 217 96 26.0% Capital grants and Contributions 66 172 - - 66 172 -61.6% General Revenues: Property taxes 6,144 6,584 - - 6,144 6,584 -6.7% Other taxes 2,138 2,222 - - 2,138 2,222 -3.8% Intergovernmental revenues, unrestricted 936 798 - - 936 798 17.3% Interest earnings - unrestricted 36 39 2 3 38 42 -9.5% Miscellaneous 1,019 950 - - 1,019 950 7.1% Total revenues 14,443 14,172 2,916 3,136 17,359 17,308 0.3% Expenses: General government 2,385 2,391 - - 2,385 2,391 0.2% Public safety 5,597 5,217 - - 5,597 5,217 7.3% Highways Streets 1,950 2,202 - - 1,950 2,202 -11.4% Sanitation / Stormwater - - 2,448 2,589 2,448 2,589 -5.4% Culture & recreation 2,498 2,341 - - 2,498 2,341 6.7% Interest on Long-term Debt 444 465 - - 444 465 -4.5% Total expenses 12,874 12,616 2,448 2,589 15,322 15,205 0.8% Increase in net assets before Transfers 1,569 1,556 468 547 2,037 2,103 -3.7% Transfers 235 (1,392) (235) 1,392 - - - Increase in net assets 1,804 164 233 1,939 2,037 2,103 -3.7% Beginning net assets 24,368 24,204 4,076 2,137 28,444 26,341 8.0% Ending net assets $ 26,172 $ 24,368 $ 4,309 $ 4,076 $ 30,481 $ 28,444 8.0% For FY 2011, increases in ending net assets were substantially due to insurance proceeds, related to a recovery, of approximately $500 thousand, an increase in permit fees due to increased activity and reductions in expenditures. General government expenditures were less than anticipated due to unfilled vacant positions and a reduction in general government operating expenditures. -7- Figure A-1 Expenses and Program Revenues – Governmental Activities For the Fiscal Year Ended September 30, 2011 0 1000000 2000000 3000000 4000000 5000000 6000000 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, 2011 Other taxes 21% Charges for services 27% Property Taxes 43% Investment earnings 0% Other 7% Grant/contribution 2% -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 $200 thousand due to the reduction of expenses related to vacant positions and a reduction in general spending. 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, 2011 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 $13.5 million, a $1 million increase over FY 2011. Of this amount, $7.6 million reflects unassigned fund balance, which is available for spending at the government’s discretion. The remainder of the fund balance is committed or restricted to indicate that it is not available for new spending as those dollars have already been 1) committed to liquidate contracts or encumbered fiscal obligations (outstanding purchase orders) valued at $1.8 million and 2) restricted for funds which restrict how the funds may be spent of $4 million. The general fund is the primary operating fund of the Village. At the end of the current fiscal year, the unassigned fund balance for the general fund was $7.6 million as compared with $6.4 million in the prior year. Nonspendable fund balance decreased from $134 thousand in the prior year to $63 thousand for the current fiscal year. The decrease was due to a reduction in encumbrances relating to ongoing projects which had not been completed as of last year-end. The Village's general fund balance increased by $1.1 million during the fiscal year. The main factors associated with this increase were $500 thousand in revenues associated with the collection of an insurance claim, an increase in activity in permitting in the building department, and a reduction in anticipated expenditures due to tight spending policies and maintaining vacant positions wherever possible. The Village has four other major funds, excise tax fund, grants fund, capital improvement fund, and general trust fund. The excise tax fund collects public service taxes, per loan requirements, and transfers the taxes to the general fund. The fund balance of $128 thousand will be transferred to the general fund in future years. The grants fund is utilized to account for federal and state grants. The fund balance of $15 thousand will be used to offset the related future grant expense. 0 1000000 2000000 3000000 SanitationStormwater Program Revenue Expenses -9- The capital improvement fund accounts for major capital items. All capital appropriations are transferred to this fund to account for each of the projects. During fiscal year 2011, the fund balance decreased $575 thousand due to the beginning stages of the construction of the fleet maintenance building. The remaining fund balance of $1.7 million consists of $1.3 million of funds encumbered for ongoing projects and $400 thousand of committed to be used for cost overruns or future projects. The general trust fund accumulates funds that are restricted for specific purposes, i.e. recreation, building department, and charter school repairs. During fiscal year 2011, the fund balance increased $164 thousand dollars for a total of $1.2 million. 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 $1.8 million, a $200 thousand increase in net asset values. Unrestricted net assets will be used to fund future purchases of capital assets.  Unrestricted net assets of the Stormwater Fund at the end of the year totaled $553 thousand, an $24 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 four 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 $882 thousand below final budgeted amounts. General government, $238 thousand, and public safety, $419 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 2011 final amended budget was $12.4 million, an increase of 0.1 % over the original General Fund budget of $12.2 million. Correspondingly, the Consumer Price Index (or inflation index) from the U.S. Bureau of Labor Statistics – All Urban Consumers for the past year was 3.2%. Beyond base revenues of $8.7 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 $1.3 million from fund balance. However, unanticipated revenues of $1.5 million and reductions in expenditures of $882 thousand resulted in a decrease in use of fund balance. Unanticipated revenues included $500 thousand from the settlement of an insurance claim; $350 thousand in additional building permit fees due to an increase in building, and $200 thousand in recreation fees due to the addition of programs. Differences between the original budget and the final amended budget increased appropriations by $200 thousand and can be briefly summarized as follows:  $127 thousand in encumbrances carried over  $70 thousand due to increases in public safety related to the purchase of police vehicles. Other Budgetary Highlights There were supplemental appropriations in the Debt Service fund totaling $8 thousand due to additional revenues during 2011, in the Local Option Gas Tax fund totaling $6 thousand, the Stormwater fund totaling $7 thousand, and the Risk Management fund totaling $18 thousand for prior year encumbrances. Supplemental appropriations were made to the Fleet Maintenance fund totaling $99 thousand for prior year encumbrances of $12 thousand and $87 thousand for the purchase of police vehicles. $2.4 million of additional encumbrances were made to the Capital Project fund related to the Second Avenue Project and the construction of the Fleet Maintenance building. These supplemental appropriations increased the Capital Project fund budget to $2.7 million for 2011. -10- 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, 2011 amounts to $23.2 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, 2011 and 2010 (net of depreciation) Governmental Activities Business-Type Activities Total Classification 2011 2010 2011 2010 2011 2010 Land $ 2,358,437 $ 2,358,437 $ - $ - $ 2,358,437 $ 2,358,437 Construction in progress 730,026 1,518,342 - - 730,026 1,518,342 Building 8,206,246 8,370,374 - - 8,206,246 8,370,374 Land Improvement 1,681,634 1,837,390 - - 1,681,634 1,837,390 Infrastructure 6,977,557 5,926,228 1,533,322 1,597,735 8,510,879 7,523,963 Machinery and equipment 1,355,753 1,094,617 390.739 446,060 1,746,492 1,540,677 Totals $21,309,653 $21,105,388 $1,924,061 $2,043,795 $23,233,714 $23,149,183 Additional information on Miami Shores’ capital assets may be found in Note V on Page 33 and 34 of this report. Long-term Liabilities. At September 30, 2011, Miami Shores Village had $10.4 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 36 of this report. Miami Shores Village Outstanding Long-term Liabilities as of September 30, 2011 and 2010 Governmental Activities Business-type activities Total Primary Government 2011 2010 2011 2010 2011 2010 General obligation bonds $ 6,665,000 $ 6,860,000 $ - $ - $ 6,665,000 $ 6,860,000 Other( issuance discount) (74,434) (77,818) - - (74,434) (77,818) Other debt 2,364,878 2,737,675 - - 2,364,878 2,737,675 8,955,444 9,519,857 - - 8,955,444 9,519,857 OPEB liability 263,711 172,948 47,035 31,130 310,746 204,078 Estimated insurance claims payable 508,411 543,707 - - 508,411 543,707 Compensated absences 647,898 709,496 54,728 74,852 702.626 784,348 Total $10,375,464 $10,946,008 $101,763 $105,982 10,477,227 11,051,990 -11- 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 does not apply to school district taxes, this effectively amounts to a $15,000 increase to the existing homestead exemption. 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. Actual taxes levied by the Village in 2011 reflected a drop of $616 thousand, precipitated by a drop in property values of $77 million or 9% in property values as compared with 2010. It is anticipated that assessed values within the Village will begin to stabilize and then see a slight increase in assessed values due to the desirability of the area and the close location to Greater Downtown Miami. Property values for fiscal year 2012 showed a slight decrease of $1.7 million, reducing property tax revenues by $13 thousand. Even though property values appear to be stabilizing, prior year losses in property values resulted in budgeting $1.1 million of fund balance surplus in 2012 to make up the loss of revenues. During the current fiscal year, unassigned fund balance in the General Fund was $7.6 million compared to unreserved fund balance of $6.4 million in 2010. This $7.6 million is approximately equal to 7.5 months of General Fund operating expenditures. The Village, as can be shown in the following graph, is maintaining its unassigned fund balance so that a portion of unassigned fund balance will be available to preclude or moderate future tax and user fee decreases or additional increases in operational expenditures. -12- General Fund Unrestricted and Unassigned Surplus For the Fiscal Years ended September 30, 2002-2011 0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 8000000 2002200320042005200620072008200920102011 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 For the Fiscal Years ended September 30, 2002-2011 0 2 4 6 8 10 2002200320042005200620072008200920102011 Operating Millage Debt Service Millage Fiscal year 2012 budgeted expenditures and transfers are expected to decrease $109,000 compared with fiscal year 2011. This minimal decrease in expenditures helps to mitigate the continued loss of revenues and reduce the amount of fund balance required to meet the ongoing needs of the Village. Requests for Information This financial report is designed to provide a general overview of Miami Shores Villages’ finances to our citizens, taxpayers, customers, investors, creditors, and others with an interest in the Villages’ finances. Questions concerning this report or requests for additional financial information should be directed to the Finance Director, Holly Hugdahl, CPA, CGMA. MIAMI SHORES VILLAGE Finance Department 10050 Northeast Second Avenue Miami Shores, Florida 33138-2382 BASIC FINANCIAL STATEMENTS Business- GovernmentalType Activities Activities Total ASSETS Cash and cash equivalents14,097,168$ 2,271,771$ 16,368,939$ Investments234,850 - 234,850 Accounts receivable - net 1,403,566 859,909 2,263,475 Prepaid items216,445 - 216,445 Inventories35,969 88,678 124,647 Net pension asset 279,194 - 279,194 Capital assets not being depreciated3,088,463 - 3,088,463 Capital assets being depreciated, net 18,221,190 1,924,061 20,145,251 Total assets37,576,845 5,144,419 42,721,264 LIABILITIES Accounts payable and accrued liabilities796,379 33,496 829,875 Unearned revenues 123,020 699,768 822,788 Accrued interest payable 110,022 - 110,022 Noncurrent liabilities: The amount due in one year 611,527 18,367 629,894 The amount due in more than one year9,763,937 83,396 9,847,333 Total liabilities11,404,885 835,027 12,239,912 NET ASSETS Invested in capital assets, net of related debt12,279,776 1,924,061 14,203,837 Restricted3,975,983 - 3,975,983 Unrestricted9,916,201 2,385,331 12,301,532 Total net assets26,171,960$ 4,309,392$ 30,481,352$ MIAMI SHORES VILLAGE, FLORIDA STATEMENT OF NET ASSETS SEPTEMBER 30, 2011 See notes to basic financial statements 13 Op e r a t i n g Ca p i t a l Business- Ch a r g e s f o r Gr a n t s a n d Gr a n t s a n d Go v e r n m e n t a l Type Ex p e n s e s Se r v i c e s Co n t r i b u t i o n s Co n t r i b u t i o n s Ac t i v i t i e s ActivitiesTotal Fu n c t i o n s / p r o g r a m s G o v e r n m e n t a l a c t i v i t i e s : G e n e r a l g o v e r n m e n t 2, 3 8 5 , 0 6 9 $ 1, 1 7 7 , 0 4 7 $ 57 , 6 2 4 $ 33 , 2 5 0 $ (1 , 1 1 7 , 1 4 8 ) $ - $ (1,117,148)$ P u b l i c s a f e t y 5, 5 9 6 , 6 9 2 77 7 , 6 5 5 15 9 , 6 7 9 - (4 , 6 5 9 , 3 5 8 ) - (4,659,358) P u b l i c w o r k s 1, 9 4 9 , 9 6 0 81 4 , 6 0 0 - 32 , 6 7 1 (1 , 1 0 2 , 6 8 9 ) - (1,102,689) C u l t u r e a n d r e c r e a t i o n 2, 4 9 8 , 4 0 8 1, 1 1 7 , 1 6 0 - - (1 , 3 8 1 , 2 4 8 ) - (1,381,248) I n t e r e s t o n l o n g - t e r m d e b t 44 3 , 5 4 2 - - - (4 4 3 , 5 4 2 ) - (443,542) T o t a l g o v e r n m e n t a l a c t i v i t i e s 12 , 8 7 3 , 6 7 1 3, 8 8 6 , 4 6 2 21 7 , 3 0 3 65 , 9 2 1 (8 , 7 0 3 , 9 8 5 ) - (8,703,985) Bu s i n e s s - t y p e a c t i v i t i e s : S a n i t a t i o n 2, 2 5 7 , 2 8 5 2, 6 6 5 , 0 4 1 - - - 407,756 407,756 S t o r m w a t e r 19 0 , 9 9 2 24 8 , 6 6 8 - - - 57,676 57,676 T o t a l b u s i n e s s a c t i v i t i e s 2, 4 4 8 , 2 7 7 2, 9 1 3 , 7 0 9 - - - 465,432 465,432 T o t a l 15 , 3 2 1 , 9 4 8 $ 6, 8 0 0 , 1 7 1 $ 21 7 , 3 0 3 $ 65 , 9 2 1 $ (8 , 7 0 3 , 9 8 5 ) $ 465,432 $ (8,238,553)$ Ge n e r a l r e v e n u e s : P r o p e r t y t a x e s , l e v i e d f o r g e n e r a l p u r p o s e 6, 1 4 3 , 8 0 6 $ - $ 6,143,806$ P u b l i c s e r v i c e t a x e s 2, 1 3 7 , 4 7 3 - 2,137,473 I n t e r g o v e r n m e n t a l ( u n r e s t r i c t e d ) 93 6 , 2 1 5 - 936,215 I n v e s t m e n t i n c o m e ( u n r e s t r i c t e d ) 36 , 3 7 8 2,313 38,691 M i s c e l l a n e o u s 1, 0 1 9 , 3 2 0 - 1,019,320 Tr a n s f e r s 23 5 , 0 0 0 (235,000) - T o t a l g e n e r a l r e v e n u e s 10 , 5 0 8 , 1 9 2 (232,687) 10,275,505 C h a n g e i n n e t a s s e t s 1, 8 0 4 , 2 0 7 232,745 2,036,952 N e t a s s e t s , b e g i n n i n g 24 , 3 6 7 , 7 5 3 4,076,647 28,444,400 N e t a s s e t s , e n d i n g 26 , 1 7 1 , 9 6 0 $ 4,309,392 $ 30,481,352$ MI A M I S H O R E S V I L L A G E , F L O R I D A 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 1 1 Pr o g r a m R e v e n u e s Ne t ( E x p e n s e ) R e v e n u e a n d Ch a n g e s i n N e t A s s e t s ST A T E M E N T O F A C T I V I T I E S Se e n o t e s t o b a s i c f i n a n c i a l s t a t e m e n t s 14 Ca p i t a l OtherTotal Ex c i s e Im p r o v e m e n t Ge n e r a l GovernmentalGovernmental Ge n e r a l Ta x Gr a n t s Fu n d Tr u s t FundsFunds 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 7, 0 9 9 , 3 9 8 $ - $ - $ 1, 8 5 0 , 3 2 1 $ 1, 3 3 7 , 7 9 5 $ 2,461,275 $ 12,748,789$ In v e s t m e n t s 17 3 , 3 5 6 - 29 , 2 2 5 - 11 , 7 5 5 20,514 234,850 Ac c o u n t s r e c e i v a b l e - n e t 42 9 , 4 9 9 32 9 , 5 5 8 28 8 , 3 3 4 - - 275,060 1,322,451 Du e f r o m o t h e r f u n d s 56 8 , 3 6 7 - - - - - 568,367 Pr e p a i d i t e m s 1, 8 8 5 - - - - 61,225 63,110 T o t a l a s s e t s 8, 2 7 2 , 5 0 5 $ 32 9 , 5 5 8 $ 31 7 , 5 5 9 $ 1, 8 5 0 , 3 2 1 $ 1, 3 4 9 , 5 5 0 $ 2,818,074 $ 14,937,567$ 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 48 5 , 0 5 1 $ - $ 2, 1 8 4 $ 18 7 , 6 8 0 $ 11 0 , 2 4 6 $ 953 $ 786,114$ Du e t o o t h e r f u n d s - 20 0 , 8 3 5 28 9 , 9 3 7 - - 77,595 568,367 Un e a r n e d r e v e n u e s 11 2 , 7 4 4 - 10 , 2 7 6 - - - 123,020 T o t a l l i a b i l i t i e s 59 7 , 7 9 5 20 0 , 8 3 5 30 2 , 3 9 7 18 7 , 6 8 0 11 0 , 2 4 6 78,548 1,477,501 FU N D B A L A N C E S No n s p e n d a b l e 1, 8 8 5 - - - - 61,225 63,110 Re s t r i c t e d - 12 8 , 7 2 3 15 , 1 6 2 - 1, 2 3 9 , 3 0 4 2,592,794 3,975,983 Co m m i t t e d 63 , 1 0 9 - - 1, 6 6 2 , 6 4 1 - 85,507 1,811,257 Un a s s i g n e d 7, 6 0 9 , 7 1 6 - - - - - 7,609,716 T o t a l f u n d b a l a n c e s 7, 6 7 4 , 7 1 0 12 8 , 7 2 3 15 , 1 6 2 1, 6 6 2 , 6 4 1 1, 2 3 9 , 3 0 4 2,739,526 13,460,066 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 8, 2 7 2 , 5 0 5 $ 32 9 , 5 5 8 $ 31 7 , 5 5 9 $ 1, 8 5 0 , 3 2 1 $ 1, 3 4 9 , 5 5 0 $ 2,818,074 $ 14,937,567$ MI A M I S H O R E S V I L L A G E , F L O R I D A BA L A N C E S H E E T GO 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 1 1 Ma j o r F u n d s Se e n o t e s t o b a s i c f i n a n c i a l s t a t e m e n t s 15 Fund balances - total government funds (Page 15)13,460,066$ 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 36,979,958 Less accumulated depreciation (16,359,960) Unamortized bond issuance costs are not available to pay for current period expenditures and therefore are not reported in the governmental funds74,434 Net pension asset 279,194 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(8,870,270)$ OPEB liability (263,711) Claims payable (168,388) Accrued interest payable(110,022) Compensated absences(621,488) (10,033,879) Net assets of internal service funds are not reported with governmental funds1,772,147 Net assets of governmental activities (Page 13)26,171,960$ SEPTEMBER 30, 2011 MIAMI SHORES VILLAGE, FLORIDA RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET ASSETS GOVERNMENTAL FUNDS See notes to basic financial statements 16 C a p i t a l O t h e r T o t a l Ex c i s e Im p r o v e m e n t Ge n e r a l Go v e r n m e n t a l Governmental Ge n e r a l Ta x Gr a n t s Fu n d Tr u s t Fu n d s Funds Re v e n u e s : P r o p e r t y t a x e s 5, 6 1 4 , 7 4 6 $ - $ - $ - $ - $ 529,060 $ 6,143,806$ P u b l i c s e r v i c e t a x e s - 2, 1 3 7 , 4 7 3 - - - - 2,137,473 O t h e r t a x e s - - - - - 714,120 714,120 L i c e n s e s a n d p e r m i t s 1, 0 5 2 , 6 2 6 - - - - - 1,052,626 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 91 2 , 4 2 1 - 25 0 , 5 5 3 - - 56,465 1,219,439 C h a r g e s f o r s e r v i c e s 1, 5 4 2 , 4 3 2 - - - - - 1,542,432 F i n e s a n d f o r f e i t u r e s 32 9 , 9 0 6 - - - - 93,999 423,905 M i s c e l l a n e o u s 63 3 , 3 1 8 - - - 24 4 , 7 9 8 108,533 986,649 I n t e r e s t i n c o m e 12 , 8 5 9 - 52 3, 2 9 7 7, 3 6 1 8,227 31,796 T o t a l r e v e n u e s 10 , 0 9 8 , 3 0 8 2, 1 3 7 , 4 7 3 25 0 , 6 0 5 3, 2 9 7 25 2 , 1 5 9 1, 5 1 0 , 4 0 4 14,252,246 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, 1 3 1 , 5 9 5 - 18 4 , 6 8 8 54 , 7 5 1 20,522 2,391,556 P u b l i c s a f e t y 5, 3 0 0 , 5 2 5 - - - - 99,064 5,399,589 P u b l i c W o r k s 1, 2 2 1 , 8 1 8 - - - - 318,937 1,540,755 C u l t u r e a n d r e c r e a t i o n 2, 1 6 1 , 2 1 3 - - - - - 2,161,213 C a p i t a l o u t l a y 44 , 7 8 9 - 67 , 7 7 5 84 6 , 4 1 8 33 , 2 4 3 181,198 1,173,423 D e b t s e r v i c e : P r i n c i p a l - - - - - 465,351 465,351 I n t e r e s t - - - - - 436,736 436,736 T o t a l e x p e n d i t u r e s 10 , 8 5 9 , 9 4 0 - 25 2 , 4 6 3 84 6 , 4 1 8 87 , 9 9 4 1, 5 2 1 , 8 0 8 13,568,623 (D e f i c i e n c y ) e x c e s s o f r e v e n u e s o v 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 ( u s e s ) (7 6 1 , 6 3 2 ) 2, 1 3 7 , 4 7 3 (1 , 8 5 8 ) (8 4 3 , 1 2 1 ) 16 4 , 1 6 5 (11,404) 683,623 Ot h e r f i n a n c i n g s o u r c e s ( u s e s ) : T r a n s f e r s ( o u t ) (6 6 3 , 6 7 8 ) (2 , 1 3 7 , 4 7 3 ) - - - (2 9 5 , 0 2 9 ) (3,096,180) T r a n s f e r s i n 2, 5 7 3 , 8 0 0 - - 26 7 , 8 0 0 - 489,580 3,331,180 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 ) 1, 9 1 0 , 1 2 2 (2 , 1 3 7 , 4 7 3 ) - 26 7 , 8 0 0 - 194,551 235,000 Ne t c h a n g e i n f u n d b a l a n c e s 1, 1 4 8 , 4 9 0 - (1 , 8 5 8 ) (5 7 5 , 3 2 1 ) 16 4 , 1 6 5 183,147 918,623 Fu n d b a l a n c e s - b e g i n n i n g 6, 5 2 6 , 2 2 0 12 8 , 7 2 3 17 , 0 2 0 2, 2 3 7 , 9 6 2 1, 0 7 5 , 1 3 9 2, 5 5 6 , 3 7 9 12,541,443 Fu n d b a l a n c e s - e n d i n g 7, 6 7 4 , 7 1 0 $ 12 8 , 7 2 3 $ 15 , 1 6 2 $ 1, 6 6 2 , 6 4 1 $ 1, 2 3 9 , 3 0 4 $ 2, 7 3 9 , 5 2 6 $ 13,460,066$ MI A M I S H O R E S V I L L A G E , F L O R I D A ST A T E M E N T O F R E V E N U E S , E X P E N D I T U R E S , A N D C H A N G E S I N F U N D B A L A N C E S GO V E R N M E N T A L F U N D S 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 1 1 Ma j o r F u n d s Se e n o t e s t o b a s i c f i n a n c i a l s t a t e m e n t s 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)918,623$ 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 1,173,423$ Less current year depreciation (836,894) Net adjustment 336,529 The net effect of various transactions involving capital assets (i.e., sales, trade-ins, and donations) is to increase (decrease) net assets. Capital outlays not meeting threshold for capitalization 72,807 Other (40,470) 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 465,351 Amortization of issuance costs, premiums and discounts (3,384) 461,967 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 (92,631) Decrease in compensated absences 49,759 Increase in OPEB liability (90,763) Decrease in accrued interest payable 4,560 Allocation of internal service funds' net income 183,826 54,751 Change in net assets of governmental activities (Page 14)1,804,207$ FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 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 Major Fund Internal Service ASSETS Sanitation Stormwater Total Funds Current assets: Cash and cash equivalents 1,702,980$ 568,791$ 2,271,771$ 1,348,379$ Accounts receivable - net 801,949 57,960 859,909 81,115 Inventories 88,678 - 88,678 35,969 Prepaid items - - - 153,335 Total current assets 2,593,607 626,751 3,220,358 1,618,798 Capital assets: Capital assets not being depreciated - - - 7,127 Capital assets being depreciated, net 390,739 1,533,322 1,924,061 682,528 Total noncurrent assets 390,739 1,533,322 1,924,061 689,655 Total assets 2,984,346 2,160,073 5,144,419 2,308,453 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 30,549 2,947 33,496 10,265 Unearned revenues 639,292 60,476 699,768 - Compensated absences 16,992 1,375 18,367 9,520 Capital lease - - - 109,253 Total current liabilities 686,833 64,798 751,631 129,038 Non-current liabilities: Compensated absences 32,492 3,869 36,361 16,889 Capital lease - - - 50,354 OPEB liability 41,809 5,226 47,035 - Claims payable - - - 340,025 Total noncurrent liabilities 74,301 9,095 83,396 407,268 Total liabilities 761,134 73,893 835,027 536,306 NET ASSETS Invested in capital assets, net of related debt 390,739 1,533,322 1,924,061 530,048 Unrestricted 1,832,473 552,858 2,385,331 1,242,099 Total net assets 2,223,212$ 2,086,180$ 4,309,392$ 1,772,147$ Enterprise Funds Business-type Activities - MIAMI SHORES VILLAGE, FLORIDA STATEMENT OF NET ASSETS PROPRIETARY FUNDS SEPTEMBER 30, 2011 See notes to basic financial statements 19 Governmental Activities - Major Fund Major Fund Internal Service Sanitation Stormwater Total Funds Operating revenues: Charges for services 2,665,041$ 248,668$ 2,913,709$ 1,912,834$ Operating expenses: Administrative and general 803,477 24,072 827,549 595,270 Personnel expenses 738,619 79,336 817,955 213,922 Depreciation 139,993 64,412 204,405 188,572 Contractual services 575,196 23,172 598,368 - Insurance premiums - - - 658,381 Insurance claims - - - 103,310 Total operating expenses 2,257,285 190,992 2,448,277 1,759,455 Operating income 407,756 57,676 465,432 153,379 Non-operating revenues (expenses): Interest income 1,161 1,152 2,313 4,582 Interest expense - - - (6,806) Total non-operating revenues (expenses)1,161 1,152 2,313 (2,224) Income before transfers and contributions 408,917 58,828 467,745 151,155 Transfers (out)(200,000) (35,000) (235,000) - Contributions - - - 32,671 Change in net assets 208,917 23,828 232,745 183,826 Total net assets, beginning 2,014,295 2,062,352 4,076,647 1,588,321 Total net assets, ending 2,223,212$ 2,086,180$ 4,309,392$ 1,772,147$ 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, 2011 See notes to basic financial statements. 20 MIAMI SHORES VILLAGE, FLORIDA, STATEMENTOFCASHFLOWS STATEMENT OF CASH FLOWS PROPRIETARYFUNDSPROPRIETARY FUNDS FISCALYEARENDEDSEPTEMBER302011FISCAL YEAR ENDED SEPTEMBER 30, 2011 GovernmentalBusinesstypeActivitiesGovernmental ActivitiesEnterpriseFunds Business-type Activities - Activities- MajorFund MajorFund Internal Enterprise Funds Major Fund Major Fund Internal ServiceService Sanitation Stormwater Total Funds Sanitation Stormwater Total Funds Cash flows from operating activities:pg Cash received from customers, governments and other funds 3,143,876$ 293,866$ 3,437,742$ 1,893,746$ ,g ,,,,,,, Cash paid to suppliers (1,492,506) (57,120) (1,549,626) (1,438,481) Cash paid for employees (630,389) (65,409) (695,798) (174,278) Net cash provided by operating activities 1,020,981 171,337 1,192,318 280,987 yg Cash flows from non-capital financing activities:pg Transfers out (200,000) (35,000) (235,000) - Net cash (used in) non-capital financing activities (200,000) (35,000) (235,000) - ()pg (,)(,)(,) Cash flows from capital related financing activities:pg Acquisition and construction of fixed assets (84,671) - (84,671) (212,511) q ()()() Capital contributions - - - 32,671 Principal retirements of capital debt - - - (102,447) Interest paid on capital debt - - - (6,806) Net cash (used in) capital and related financing activities (84,671) - (84,671) (289,093) Cash flows from investing activities: Interest and other income 1,161 1,152 2,313 4,582 Net cash provided by investing activities 1,161 1,152 2,313 4,582 Net increase (decrease) in cash and cash equivalents 737,471 137,489 874,960 (3,524) CashandcashequivalentsOctober1 965509 431302 1396811 1351903Cash and cash equivalents, October 1 965,509 431,302 1,396,811 1,351,903 Cash and cash equivalents, September 30 1,702,980$ 568,791$ 2,271,771$ 1,348,379$ ReconciliationofoperatingincometonetcashReconciliation of operating income to net cash provided by operating activities:podedbyopeatgacttes Operating income 407,756$ 57,676$ 465,432$ 153,379$ pg ,,,, Adjustmentstoreconcileoperatingincometonet Adjustments to reconcile operating income to net cash provided by operating activities: pypg Depreciation 139,993 64,412 204,405 188,572 p Change in assets and liabilities: (Increase) decrease in: Accounts receivable 478,835 45,198 524,033 (19,088) Inventories 25,289 - 25,289 2,545 Pidit 3947 Prepaid items - - - 3,947 I(d)i Increase (decrease) in: Accountspayableandaccruedliabilities 19761 2036 21797 6865 Accounts payable and accrued liabilities 19,761 2,036 21,797 6,865 Claimspayable (35295) Claims payable - - - (35,295) Compensatedabsences (12331)1703 (10628)(19938) Compensated absences (12,331) 1,703 (10,628) (19,938) OPEBliability 14138 1767 15905 - OPEB liability 14,138 1,767 15,905 - Unearnedrevenues (52,460)(1,455)(53,915)- Unearned revenues (52,460) (1,455) (53,915) Totaladjustments 613225 113661 726886 127608 Total adjustments 613,225 113,661 726,886 127,608 Netcashprovidedbyoperatingactivities 1020981$171337$1192318$280987$Net cash provided by operating activities 1,020,981$ 171,337$ 1,192,318$ 280,987$ See notes to basic financial statements 21 PensionPrivate TrustPurpose Funds Trust Agency ASSETS Cash and cash equivalents1,245,249$ 1,748,187$ 152,835$ Receivables: Accrued interest and dividends64,270 - - Total receivables64,270 - - Investments, at fair value U.S. Government securities3,571,719 - - Municipal bonds628,984 Corporate bonds3,274,901 - - Mutual funds - equity6,605,364 - - Common stocks4,910,114 - - LGIP Fund B Surplus Trust Fund- 7,726 - Total investments18,991,082 7,726 - Total assets20,300,601 1,755,913 152,835 LIABILITIES DROP liability439,672 - - Other liabilities- - 152,835 Total liabilities439,672 - - NET ASSETS Net assets held in trust19,860,929$ 1,755,913$ 152,835$ MIAMI SHORES VILLAGE, FLORIDA STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS SEPTEMBER 30, 2011 See notes to basic financial statements 22 PensionPrivate TrustPurpose Funds Trust ADDITIONS Contributions: Employer 1,076,650$ -$ Employees 376,176 - Total contributions 1,614,395 - Investment income: Unrealized (losses)(1,313,144) - Realized gains 761,076 - Interest and dividend income 500,265 27,381 Total investment (losses) income (51,803) 27,381 Less investment expenses 240,306 - Net investment income (292,109) 27,381 Total additions 1,322,286 27,381 DEDUCTIONS Benefits paid 1,321,981 - Distribution to charter school - 200,000 Total deductions 1,321,981 200,000 Changes in net assets 305 (172,619) Net assets- beginning 19,860,624 1,928,532 Net assets- ending 19,860,929$ 1,755,913$ MIAMI SHORES VILLAGE, FLORIDA STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIDUCIARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 See notes to basic financial statements 23 NOTES TO BASIC FINANCIAL STATEMENTS 24 MIAMI SHORES VILLAGE, FLORIDA NOTES TO THE BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2011 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, 2011 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. 25 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. Grants – This fund accounts for the use of specific designated resources related to grant programs. 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. Stormwater Fund - This fund accounts for the operations and maintenance of the Village’s stormwater 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. 26 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, 2011 was 0.75683860. 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. 27 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, 2011 was 8.7762 mills ($8.7762 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. 28 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. 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 11-12 fiscal year. 29 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, 2011, 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 Balance As of September 30, 2011, fund balances of the governmental funds are classified as follows:  Non-spendable — Amounts that cannot be spent either because they are in non-spendable form or because they are legally or contractually required to be maintained intact.  Restricted — Amounts that can be spent only for specific purposes because of constitutional provisions or enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors, or the laws or regulations of other governments.  Committed — Amounts that can be used only for specific purposes determined by a formal action of the Village Council. The Village Council is the highest level of decision-making authority for the Village. Commitments may be established, modified, or rescinded only through ordinances or resolutions approved by the Village Council. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements.  Assigned — Amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be used for specific purposes.  Unassigned — All other spendable amounts. 30 Capital OtherTotal Excise ImprovementGeneralGovernmentalGovernmental General Tax Grants Fund Trust Funds Funds Fund Balances: Nonspendable: Prepaids 1,885$ -$ -$ -$ -$ 61,225$ 63,110$ Restricted: Transportation - 128,723 - - - 1,179,910 1,308,633 Capital projects - - - - - 8,341 8,341 Library - - 1,712 - 74,537 - 76,249 Recreation - - 13,450 - 69,010 - 82,460 Buildings - - - - 58,449 - 58,449 Pilot Program - - - - 85,179 - 85,179 Charter School - - - - 952,129 - 952,129 Public Safety - - - - - 231,648 231,648 Debt service - - - - - 1,172,895 1,172,895 Committed: Encumbrances 63,109 - - - - 11,414 74,523 Capital projects - - - 1,662,641 - 74,093 1,736,734 Assigned:- - - - - - - Unassigned:7,609,716 - - - - - 7,609,716 Total Fund Balances 7,674,710$ 128,723$ 15,162$ 1,662,641$ 1,239,304$ 2,739,526$ 13,460,066$ Fund Balances: Nonspendable 1,885$ - - - - 61,225 63,110$ Restricted - 128,723 15,162 - 1,239,304 2,592,794 3,975,983 Committed 63,109 - - 1,662,641 - 85,507 1,811,257 Assigned - - - - - - - Unassigned 7,609,716 - - - - - 7,609,716 Total Fund Balances 7,674,710$ 128,723$ 15,162$ 1,662,641$ 1,239,304$ 2,739,526$ 13,460,066$ 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. Q. New Accounting Pronouncement Adopted At October 1, 2010, the Village adopted the provision of GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. The objective of this Statement is to enhance the usefulness of fund balance information by providing clearer fund balance classifications that can be more consistently applied and by clarifying the existing governmental fund type definitions. This Statement establishes fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. 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. 31 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, 2011, the Village complied, in all material respects, with these revenue restrictions. 3. Excesses of expenditures over appropriations For the year ended September 30, 2011 expenditures exceeded appropriations in the Grants Fund by $119,141. These over-expenditures were funded by greater than anticipated revenues. 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. Investments – Village As of September 30, 2011, the Village had the following investments: Investment Type Fair Value Weighted Average Maturity (Days) Weighted Average Maturity (Years) SBA- LGIP 148,537 52 n/a SBA- Fund B 86,313 n/a 7.49 Total $234,850 32 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, 2011, 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, 2011, the Plan had the following investments: Fair Less than 1More than Investment Type Value Year 1-5 Years 6-10 Years 10 Years U.S. Government Securities $ 4,200,703 $ 734 $ 97,936 $ 872,999 $ 3,229,033 Corporate bonds 3,274,901 91,414 1,084,983 1,197,040 901,463 Total fixed income securities $ 7,475,604 $ 92,148 $ 1,182,920 $ 2,070,040 $ 4,130,497 Investment Maturities (in Years) 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 investment grade or higher. The following table discloses credit ratings by investment type, at September 30, 2011: Standard & Poor'sPercentage of Quality Ratings of CreditFixed Income Risk Debt Securities Fair Value Portfolio AAA $ 886,898 12% AA+ 1,134,892 15% AA 67,608 1% AA- 151,491 2% A+ 474,731 6% A 754,033 10% A- 328,463 4% BBB+ 175,155 2% BBB 296,558 4% BBB- 128,484 2% N/R 3,077,290 41% $ 7,475,604 100% 33 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, 2011, 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: NonmajorInternal Excise TaxSanitationStormwaterGovernmentalService General Fund Grants Fund Funds Funds Funds Total Receivables: Accounts-$ -$ -$ 801,949$ 57,960$ -$ 81,115$ 941,024$ Taxes249,995 329,558 - - - 111,725 - 691,278 Grants and other179,504 - 288,334 - - 163,335 - 631,173 Total receivables429,499$ 329,558$ 288,334$ 801,949$ 57,960$ 275,060$ 81,115$ 2,263,475$ 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. V. CAPITAL ASSETS Capital assets activity for the fiscal year ended September 30, 2011 was as follows: Beginning Additions Deletions Ending Governmental activities Capital assets not being depreciated: Land $ 2,358,437 $ - $ - $ 2,358,437 Construction in progress 1,518,342 618,964 (1,407,280) 730,026 Total capital assets not being depreciated 3,876,779 618,964 (1,407,280) 3,088,463 Capital assets being depreciated: Building and improvements 11,000,731 37,440 - 11,038,171 Land improvements 4,072,615 29,050 - 4,101,665 Infrastructure 15,675,870 1,407,280 - 17,083,150 Machinery and equipment 3,904,664 560,777 (55,000) 4,410,441 Total capital assets being depreciated 34,653,880 2,034,547 (55,000) 36,633,427 Less accumulated depreciation for: Building and improvements (2,630,357) (201,568) - (2,831,925) Land improvements (2,235,225) (184,806) - (2,420,031) Infrastructure (9,749,642) (355,951) - (10,105,593) Machinery and equipment (2,810,047) (283,141) 38,500 (3,054,688) Total accumulated depreciation (17,425,271) (1,025,466) 38,500 (18,412,237) Total capital assets being depreciated, net 17,228,609 1,009,081 (16,500) 18,221,190 Governmental activities capital assets, net $ 21,105,388 $ 1,628,045 $ (1,423,780) $ 21,309,653 34 Beginning Additions Deletions Ending Business-type activities Capital assets being depreciated: Machinery and equipment $ 1,989,864 $ 84,671 $ - $ 2,074,535 Drainage improvements 2,006,589 - - 2,006,589 Total capital assets being depreciated 3,996,453 84,671 - 4,081,124 Less accumulated depreciation for: Machinery and equipment (1,543,803) (139,993) - (1,683,796) Drainage improvements (408,855) (64,412) - (473,267) Total accumulated depreciation (1,952,658) (204,405) - (2,157,063) Total capital assets being depreciated, net 2,043,795 (119,734) - 1,924,061 Business-type activities capital assets, net $ 2,043,795 $ (119,734) $ - $ 1,924,061  Depreciation expense was charged to functions/programs of the Village as follows: Governmental activities General Government $ 20,886 Public Safety 76,113 Public Works 597,163 Culture and Recreation 331,304 Total depreciation expense – governmental activities $ 1,025,466 Business- type activities Sanitation$ 139,993 Stormwater 64,412 Total depreciation expense – business- type activities $ 204,405 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 2011 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, 2011 are summarized as follows: September 30,Principal Interest Total 2012 $ 85,000 $ 119,050 $ 204,050 2013 90,000 115,225 205,225 2014 95,000 111,175 206,175 2015 100,000 106,306 206,306 2016 105,000 101,181 206,181 2017-2021 600,000 422,413 1,022,413 2022-2026 770,000 219,500 989,500 2027-2029 555,000 56,500 611,500 2,400,000$ 1,251,350$ 3,651,350$ 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 $115,000 in 2011 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. 35 Debt service requirements to maturity for the fiscal year ending September 30, 2011 are summarized as follows: September 30,Principal Interest Total 2012 $ 120,000 $ 196,058 $ 316,058 2013 125,000 191,495 316,495 2014 130,000 186,620 316,620 2015 135,000 181,220 316,220 2016 140,000 175,620 315,620 2017-2021 785,000 777,338 1,562,338 2022-2026 980,000 563,563 1,543,563 2027-2031 1,255,000 280,500 1,535,500 2032-2033 595,000 15,250 610,250 Total $ 4,265,000 $ 2,567,663 $ 6,832,663 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, 2011 are summarized as follows: September 30,Principal Interest Total 2012 $ 284,877 $ 95,450 $ 380,327 2013 298,091 82,236 380,327 2014 311,918 68,409 380,327 2015 327,144 53,184 380,327 2016 341,526 38,801 380,327 2017-2018 641,716 29,341 671,057 Total $ 2,205,271 $ 367,421 $ 2,572,692 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 $27,313, including interest at 3.04% per annum, over a period of 60 months. Future minimum lease payments and the present value of net minimum lease payments as of September 30, 2011 are as follows: Governmental September 30,Activities 2012$ 109,253 2013 54,626 Total minimum lease payments 163,879 Less amount representing interest (4,272) Present value of net minimum lease payments$ 159,607 36 The assets acquired through capital leases outstanding as of September 30, 2011 are as follows: Assets: Fleet $406,522 Less accumulated depreciation (200,329) Total $206,193 Long-term debt activity for the fiscal year ended September 30, 2011 was as follows: Due within Beginning Additions Reductions Ending One Year Governmental Activities Bonds and notes payable: General obligation bonds payable-1999 $ 2,480,000 $ - $ (80,000) $ 2,400,000 $ 85,000 General obligation bonds payable-2004 4,380,000 - (115,000) 4,265,000 120,000 Promissory note – 2006 2,475,621 - (270,350) 2,205,271 284,877 Less deferred amounts – discounts (77,818) - 3,384 (74,434) (3,384) Total bonds and notes payable 9,257,803 - (461,966) 8,795,837 486,493 Other liabilities: Capital lease 262,054 - (102,447) 159,607 105,597 OPEB liability 172,948 90,763 - 263,711 - Claims payable 543,707 - (35,296) 508,411 - Compensated absences 709,496 551,784 (613,382) 647,898 19,437 Total other liabilities 1,688,205 642,547 (751,125) 1,579,627 125,034 Governmental activity long-term liabilities $ 10,946,008 $ 642,547 $ (1,213,091) $ 10,375,464 $ 611,527 Business-type activities Other liabilities: OPEB liability $ 31,130 $ 15,905 $ - $ 47,035 $ - Compensated absences 65,356 29,115 (39,743) 54,728 18,367 Business-type activities Long-term liabilities $ 96,486 $ 45,020 $ (39,743) $ 101,763 $ 18,367 VII. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS Interfund balances at September 30, 2011 are as follows: InterfundInterfund Receivable Payable General Fund $ 568,367 $ - Excise Tax - 200,835 Grants - 289,937 Non-major governmental funds - 77,595 Total $ 568,367 $ 568,367 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. 37 Interfund transfer activity for the year ended September 30, 2011 was as follows: Transfers In Transfers Out General fund $ 2,573,800 $ 663,678 Excise tax - 2,137,473 Capital improvement fund 267,800 - Sanitation fund - 200,000 Stormwater fund - 35,000 Non-major governmental funds 489,580 295,029 $ 3,331,180 $ 3,331,180 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. Membership The membership in the Plans as of October 1, 2009 consisted of: General Employees Police Inactive employees: Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving them 41 23 Active participants: 71 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. 38 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, 2011, total liabilities for the DROP were $323,567. Funding Policy Plan members are required to contribute 6% of their annual covered salary. The employer contributions for the fiscal year ending September 30, 2011, determined using the actuarial valuation dated October 1, 2009, were 4.14% of covered payroll. The Village contributes at actuarially determined rates that are designed to accumulate sufficient assets to pay benefits when due. Funded Status and Funding Progress The funded status of the Plan as of October 1, 2009, the most recent actuarial valuation date, is as follows: UAAL as a ActuarialActuarialPercentage ValueAccruedUnfundedof ActuarialofLiabilityAALFundedCoveredCovered ValuationAssets(AAL) -(UAAL)RatioPayrollPayroll Date (a)(b)(b-a)(a/b)(c)(b-a)/c 10/1/20099,335,036$ 9,258,119$ (76,917)$ 100.8%3,228,192$ -2.4% 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. 39 Annual Pension Cost and Net Pension Obligation (Asset) The Village's 2011 contribution was determined through an actuarial valuation performed as of October 1, 2009. Significant actuarial assumptions used in the latest actuarial valuation are as follows: Valuation date 10/1/09 Actuarial cost method Aggregate Amortization method NA Remaining 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. The Village's annual pension cost and net pension asset for the Plan for the year ended September 30, 2011 was as follows: Annual required contribution$ 133,658 Interest on net pension obligation (3,318) Adjustment to annual required contribution 3,318 Annual pension cost 133,658 Contributions made 125,000 (Decrease) in net pension asset (8,658) Net pension asset, beginning of year 71,226 Net pension asset, end of year$ 62,568 % of AnnualNet Fiscal YearAnnual PensionActualPension CostPension Ended Cost (APC)Contribution Contribution (APC)Asset 9/30/200959,027$ 99,500$ 169%41,479$ 9/30/201071,897$ 101,644$ 141%71,226$ 9/30/2011133,658$ 125,000$ 94%62,568$ Three Year Trend Information 40 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, 2011. STATEMENT OF PLAN NET ASSETS SEPTEMBER 30, 2011 ASSETS Cash and cash equivalents $ 247,187 Investments, at fair value 7,899,335 Accrued interest receivable 25,188 Total assets 8,171,710 LIABILITIES AND NET ASSETS DROP liability 323,567 Net assets held in trust for pension benefits $7,848,143 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. STATEMENT OF CHANGES IN PLAN NET ASSETS FISCAL YEAR ENDED SEPTEMBER 30, 2011 ADDITIONS Contributions $295,179 Net investment income (137,184) Total additions 157,995 DEDUCTIONS Pension benefits 481,481 Change in net assets (323,486) Net assets held in trust for pension benefits: Beginning 8,171,629 Ending $7,848,143 41 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, 2011, total liabilities for the DROP were $116,105. 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 Shore Village’s properties is collected by the State and is remitted to the Plan. This amount totaled $161,569 for the fiscal year ended September 30, 2011. This amount was recognized as expenditure and revenue in the General Fund. The Village is required to contribute the remaining amounts necessary to finance the benefits through periodic contributions of actuarially determined amounts. For the fiscal year ended September 30, 2011, the Village's contribution was 40.65% of annual covered earnings which was determined by the October 1, 2009 actuarial valuation. Funded Status and Funding Progress The funded status of the Plan as of October 1, 2009, the most recent actuarial valuation date, is as follows: UAAL as a ActuarialActuarialPercentage ValueAccruedUnfundedof ActuarialofLiabilityAALFundedCoveredCovered ValuationAssets(AAL) -(UAAL)RatioPayrollPayroll Date (a)(b)*(b-a)(a/b)(c)(b-a)/c 10/1/200912,349,336$ 16,905,643$ 4,556,307$ 73.0%1,989,749$ 229.0% 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. 42 Annual Pension Cost and Net Pension Obligation (Asset) The Village's 2011 contribution was determined through an actuarial valuation performed as of October 1, 2008. Significant actuarial assumptions used in the latest actuarial valuation are as follows: Valuation date 10/1/09 Actuarial cost method Aggregate Amortization method NA Remaining 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. The Village's annual pension cost and net pension asset to the Plan for the fiscal year ended September 30, 2011 was as follows: Annual required contribution$ 838,984 Interest on net pension obligation (9,786) Adjustment to annual required contribution 9,786 Annual pension cost 838,984 Contributions made 951,650 (Decrease) in net pension asset 112,666 Net pension asset, beginning of year 103,960 Net pension asset, end of year$ 216,626 % of AnnualNet Fiscal YearAnnual PensionActualPension CostPension Ended Cost (APC)Contribution Contribution (APC)Asset 9/30/2009703,633$ 813,128$ 116%122,330$ 9/30/2010808,370$ 790,000$ 98%103,960$ 9/30/2011838,984$ 951,650$ 113%216,626$ 43 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, 2011. STATEMENT OF NET PLAN ASSETS SEPTEMBER 30, 2011 ASSETS Cash and cash equivalents $ 998,062 Investments, at fair value 11,091,747 Accrued interest receivable 39,082 Total assets 12,128,891 LIABILITIES AND NET ASSETS DROP liability 116,105 Net assets held in trust for pension benefits $12,012,786 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, 2011, there was one liability claim and three workers' compensation claims outstanding under the previous self-insurance program. 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. STATEMENT OF CHANGES IN PLAN NET ASSETS FISCAL YEAR ENDED SEPTEMBER 30, 2011 ADDITIONS Contributions $1,319,216 Net investment income (154,925) Total additions 1,164,291 DEDUCTIONS Pension benefits 840,500 Change in net assets 323,791 Net assets held in trust for pension benefits: Beginning 11,688,995 Ending $12,012,786 44 Changes in the balances of estimated claims for the past three years ended September 30, 2011 are as follows: 2011 2010 2009 Unpaid claims, beginning $543,707 $508,387 $509,047 Incurred claims (including IBNR’s) - 45,454 9,474 Claim payments and disbursements ( 35,296) ( 10,134) ( 10,134) Unpaid claims, ending $508,411 $543,707 $508,387 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. 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. 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. 45 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. 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, 2011. The actuarial valuation estimated the Unfunded Actuarial Accrued liability (UAAL) and an Annual Required Contribution (ARC) of $186,086. 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 2010 177,205 73,974 41.74% 204,078 2011 186,086 79,418 42.68% 310,746 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% $4,767,200 33.51% The schedule of funding progress presented as required supplementary information (RSI) above, present multiyear trend information about whether the actuarial values of the plan assets are increasing or decreasing over time relative to the AALs for benefits. 46 The Village's annual contribution is based on the actuarial valuation. Actuarial Cost Method: Entry Age Amortization Method: Level % Closed Amortization Period: 30 Years Asset Valuation Method: Unfunded Actuarial Assumptions: Investment rate of return 4.25% (includes general price inflation at 3.0%) Projected salary increases 5.5% - 6.5% Payroll growth assumptions 4.0% Initial per capital cost trend rate 2.0% XII. SUBSEQUENT EVENTS Management evaluated subsequent events from October 1, 2011 through March 20, 2012, the date that the financial statements were available to be published. No events were identified during this review of subsequent events that required adjustment to or disclosure within these financial statements. REQUIRED SUPPLEMENTARY INFORMATION MIAMI SHORES VILLAGE, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE GENERAL FUND FISCAL YEAR ENDED SEPTEMBER 2011 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues: Taxes: Property taxes5,480,921$ 5,480,921$ 5,614,746$ 133,825$ Licenses and permits: Business licenses - Village 70,000 70,000 100,382 30,382 Business licenses - County 16,000 16,000 18,785 2,785 Building permits 450,000 450,000 802,425 352,425 Certificate of reoccupancy 9,000 9,000 8,825 (175) Other licenses and permits 109,000 109,000 122,209 13,209 Total licenses and permits654,000 654,000 1,052,626 398,626 Intergovernmental revenues: State shared revenues: State revenue sharing210,828 210,828 217,854 7,026 Local government half cent sales tax 663,447 663,447 683,493 20,046 Other 1,100 1,100 11,074 9,974 Total intergovernmental revenues875,375 875,375 912,421 37,046 Charges for services: Physical environment40,000 40,000 51,057 11,057 Police extra duty261,041 261,041 301,276 40,235 Landscape maintenance19,901 19,901 19,901 - Culture/recreation 963,187 971,437 1,170,198 198,761 Total charges for services 1,284,129 1,292,379 1,542,432 250,053 Fines and forfeitures: Court fines and costs 100,000 100,000 77,055 (22,945) School crossing guards 20,000 20,000 21,145 1,145 Other 161,500 161,500 231,706 70,206 Total fines and forfeitures 281,500 281,500 329,906 48,406 Miscellaneous: Rents 25,000 25,000 24,495 (505) Other 32,450 32,450 608,823 576,373 Total miscellaneous 57,450 57,450 633,318 575,868 Interest 37,186 37,186 12,859 (24,327) Total revenues 8,670,561$ 8,678,811$ 10,098,308$ 1,419,497$ (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 council10,091$ 10,091$ 8,995$ 1,096$ Village attorney 125,841 135,841 131,198 4,643 Village manager 232,609 232,609 223,058 9,551 Village clerk 163,368 181,868 144,978 36,890 Code enforcement 176,408 176,408 170,765 5,643 Building department 344,471 344,471 341,511 2,960 Planning and zoning158,021 158,021 147,806 10,215 Finance471,510 519,510 503,037 16,473 Other general government 618,438 618,838 468,236 150,602 Total general government 2,300,757 2,377,657 2,139,584 238,073 Public safety: Law enforcement 5,589,836 5,677,882 5,259,660 418,222 School crossing guard41,754 41,754 40,865 889 Total public safety 5,631,590 5,719,636 5,300,525 419,111 Public works: Parks374,243 375,243 340,975 34,268 Street maintenance435,707 435,707 383,776 51,931 Public works administration372,657 372,657 357,820 14,837 Recreation maintenance180,756 180,756 139,247 41,509 Total public services1,363,363 1,364,363 1,221,818 142,545 Culture and recreation: Recreation1,834,298 1,867,730 1,808,652 59,078 Library 412,241 412,241 389,361 22,880 Total culture and recreation2,246,539 2,279,971 2,198,013 81,958 Total expenditures11,542,249 11,741,627 10,859,940 881,687 Deficiency of revenues over expenditures (2,871,688) (3,062,816) (761,632) 2,301,184 Other financing sources (uses) Transfers in2,441,945 2,441,945 2,573,800 131,855 Transfers out(663,678) (663,678) (663,678) - Appropriations from prior year fund balance 1,093,421 1,284,549 - (1,284,549) Total other financing sources (uses)2,871,688 3,062,816 1,910,122 (1,152,694) Net change in fund balance- - 1,148,490 1,148,490 Fund balance, beginning of year - - 6,526,220 6,526,220 Fund balance, end of year -$ -$ 7,674,710$ 7,674,710$ FISCAL YEAR ENDED SEPTEMBER 2011 Budgeted Amounts See notes to budgetary comparison schedule 48 Va r i a n c e w i t h V a r i a n c e w i t h F i n a l B u d g e t Final Budget B u d g e t e d A m o u n t s A c t u a l P o s i t i v e B u d g e t e d A m o u n t s A c t u a l P o s i t i v e Or i g i n a l Fi n a l Am o u n t s (N e g a t i v e ) Or i g i n a l Fi n a l Amounts(Negative) Re v e n u e s : P u b l i c s e r v i c e t a x e s 2 , 2 0 6 , 9 4 5 $ 2 , 2 0 6 , 9 4 5 $ 2 , 1 3 7 , 4 7 3 $ ( 6 9 , 4 7 2 ) $ - $ - $ - $ -$ 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 - - - - 1 3 3 , 3 2 2 1 3 3 , 3 2 2 2 5 0 , 5 5 3 117,231 I n t e r e s t i n c o m e - - - - - - 52 52 T o t a l r e v e n u e s 2 , 2 0 6 , 9 4 5 2 , 2 0 6 , 9 4 5 2 , 1 3 7 , 4 7 3 ( 6 9 , 4 7 2 ) 1 3 3 , 3 2 2 1 3 3 , 3 2 2 250,605 117,283 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 - - - - 1 3 3 , 3 2 2 13 3 , 3 2 2 252,463 (119,141) T o t a l e x p e n d i t u r e s - - - - 1 3 3 , 3 2 2 13 3 , 3 2 2 252,463 (119,141) (D e f i c i e n c y ) o f r e v e n u e s o v 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 2 , 2 0 6 , 9 4 5 2 , 2 0 6 , 9 4 5 2, 1 3 7 , 4 7 3 (6 9 , 4 7 2 ) - - (1,858) (1,858) Ot h e r f i n a n c i n g u s e s T r a n s f e r s o u t ( 2 , 2 0 6 , 9 4 5 ) ( 2 , 2 0 6 , 9 4 5 ) (2 , 1 3 7 , 4 7 3 ) 69 , 4 7 2 - - - - T o t a l o t h e r f i n a n c i n g u s e s ( 2 , 2 0 6 , 9 4 5 ) ( 2 , 2 0 6 , 9 4 5 ) (2 , 1 3 7 , 4 7 3 ) 69 , 4 7 2 - - - - Ne t c h a n g e i n f u n d b a l a n c e - - - - $ - - (1,858) (1,858)$ Fu n d b a l a n c e s , b e g i n n i n g - - 12 8 , 7 2 3 - - 17,020 Fu n d b a l a n c e s , e n d i n g - $ - $ 12 8 , 7 2 3 $ - $ - $ 15,162$ Gr a n t s F u n d MI A M I S H O R E S V I L L A G E , F L O R I D A BU D G E T A R Y C O M P A R I S O N S C H E D U L E S MA J O R S P E C I A L R E V E N U E F U N D S 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 1 1 Ex c i s e T a x Se e n o t e s t o b u d g e t a r y c o m p a r i s o n s c h e d u l e s 49 50 MIAMI SHORES VILLAGE, FLORIDA NOTE TO BUDGETARY COMPARISON SCHEDULE FISCAL YEAR ENDED SEPTEMBER 30, 2011 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 operating budgets for the following governmental funds: General Fund, Excise Tax Fund, Grants Fund, Local Option Gas Tax Fund, Half Cent Surtax Fund, the Capital Improvements Fund and Debt Service Fund. Budgets are also adopted for the Stormwater fund, Sanitation fund, Risk Management and Fleet Maintenance 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 $199,378, in the Local Option Gas Tax Fund Totaling $6,000, in the Capital Improvement Fund totaling $2,379,206, in the Debt Service Fund totaling $8,250, in the Stormwater Fund totaling $7,000, in the Risk Management Fund totaling $40,578 and the Fleet Maintenance fund totaling $99,572 during the fiscal year ended September 30, 2011 for funding outstanding obligations and unanticipated expenses. 6. Unencumbered appropriations lapse at year end. Excesses of expenditures over appropriations For the year ended September 30, 2011 expenditures exceeded appropriations in the Grants Fund by $119,141. These over-expenditures were funded by greater than anticipated revenues. UAAL as a Actuarial Actuarial Percentage Value Accrued Unfunded of Actuarial of Liability AAL Funded Covered Covered Valuation Assets (AAL) -(UAAL)Ratio Payroll Payroll Date (a)(b)(b-a)(a/b)(c)(b-a)/c 10/1/2009 9,335,036$ 9,258,119$ (76,917)$ 100.8%3,228,192$ -2.4% 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% An actuarial valuation was not performed for 10/1/08 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 10/1/2009 12,349,336$ 16,905,643$ 4,556,307$ 73.0%1,989,749$ 229.0% 10/1/2008 11,728,021 16,032,250 4,304,229 73.2%1,901,236 226.4% 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% *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 2011 133,658$ 94% 2010 68,362 149% 2009 58,998 169% 2008 88,622 100% 2007 56,709 128% 2006 15,845 100% Fiscal Year Annual Ended Required Percentage September 30,Contribution Contributed 2011 838,984$ 100% 2010 808,791 100% 2009 770,594 100% 2008 702,455 100% 2007 700,455 100% 2006 594,211 100% Police Officers' Retirement System MIAMI SHORES VILLAGE, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS PENSION TRUST FUNDS General Employees' Retirement System 52 COMBINING FINANCIAL STATEMENTS 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. Building Better Communities – This fund accounts for the improvements to sidewalks and drainage systems which are being funded by granting agencies. 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 Bu i l d i n g La w Tr a n s p o r t a t i o n Op t i o n Be t t e r 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 Co m m u n i t i e 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 44 7 , 0 5 7 $ 63 0 , 0 5 9 $ - $ - $ 14 , 3 6 3 $ 200,956 $ 1,292,435$ In v e s t m e n t s - - - - - 6,797 6,797 Ac c o u n t s r e c e i v a b l e - n e t 82 , 5 7 6 29 , 1 4 9 85 , 9 3 6 - 26 4 12,704 210,629 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 - 15 0 - - - - 150 T o t a l a s s e t s 52 9 , 6 3 3 $ 65 9 , 3 5 8 $ 85 , 9 3 6 $ - $ 14 , 6 2 7 $ 220,457 $ 1,510,011$ 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 95 3 $ - $ - $ - $ - $ - $ 953$ Du e t o o t h e r f u n d s - - 77 , 5 9 5 - - - 77,595 T o t a l l i a b i l i t i e s 95 3 - 77 , 5 9 5 - - - 78,548 FU N D B A L A N C E S No n s p e n d a b l e - 1 5 0 - - - - 1 5 0 Re s t r i c t e d 5 2 8 , 6 8 0 6 5 1 , 2 3 0 8 , 3 4 1 - 1 4 , 6 2 7 2 1 7 , 0 2 1 1 , 4 1 9 , 8 9 9 Co m m i t t e d - 7, 9 7 8 - - - 3,436 11,414 T o t a l f u n d b a l a n c e s 52 8 , 6 8 0 65 9 , 3 5 8 8, 3 4 1 - 14 , 6 2 7 220,457 1,431,463 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 52 9 , 6 3 3 $ 65 9 , 3 5 8 $ 85 , 9 3 6 $ - $ 14 , 6 2 7 $ 220,457 $ 1,510,011$ 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 1 1 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 equivalents1,151,212$ -$ 17,628$ 17,628$ 2,461,275$ Investments13,717 - - - 20,514 Accounts receivable - net7,966 - 56,465 56,465 275,060 Due from other funds- - - - - Prepaid items61,075 - - - 61,225 Total assets 1,233,970$ -$ 74,093$ 74,093$ 2,818,074$ LIABILITIES Accounts payable and accrued liabilities-$ -$ -$ -$ 953$ Due to other funds- - - - 77,595 Total liabilities- - - - 78,548 FUND BALANCES Nonspendable61,075 - - - 61,225 Restricted1,172,895 - - - 2,592,794 Committed- - 74,093 74,093 85,507 Total fund balances 1,233,970 - 74,093 74,093 2,739,526 Total liabilities and fund balances1,233,970$ -$ 74,093$ 74,093$ 2,818,074$ MIAMI SHORES VILLAGE, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2011 Capital Projects 54 Lo c a l Bu i l d i n g La w Tr a n s p o r t a t i o n Op t i o n Be t t e r 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 Co m m u n i t i e 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 34 0 , 9 3 0 37 3 , 1 9 0 - - - - 714,120 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 - - - - - - - F i n e s a n d f o r f e i t u r e s - - - - 3, 4 1 6 90,583 93,999 M i s c e l l a n e o u s - - - - - 108,533 108,533 I n t e r e s t i n c o m e 89 2 1, 5 2 9 - - 13 1 1,921 4,473 T o t a l r e v e n u e s 34 1 , 8 2 2 37 4 , 7 1 9 - - 3, 5 4 7 201,037 921,125 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 - $ - $ - $ - $ - $ - $ - $ P u b l i c s a f e t y - - - - 2, 3 1 7 96,747 99,064 P u b l i c w o r k s 19 6 , 9 7 6 12 1 , 9 6 1 - - - 318,937 C a p i t a l o u t l a y - 3, 0 1 9 - - - 121,714 124,733 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 19 6 , 9 7 6 12 4 , 9 8 0 - - 2, 3 1 7 218,461 542,734 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 14 4 , 8 4 6 24 9 , 7 3 9 - - 1, 2 3 0 (17,424) 378,391 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 ) - ( 9 3 , 7 0 2 ) - ( 2 0 1 , 3 2 7 ) - - ( 2 9 5 , 0 2 9 ) 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 ) - (9 3 , 7 0 2 ) - (2 0 1 , 3 2 7 ) - - (295,029) Ne t c h a n g e i n f u n d b a l a n c e 14 4 , 8 4 6 15 6 , 0 3 7 - (2 0 1 , 3 2 7 ) 1, 2 3 0 (17,424) 83,362 Fu n d b a l a n c e s , b e g i n n i n g 38 3 , 8 3 4 50 3 , 3 2 1 8, 3 4 1 20 1 , 3 2 7 13 , 3 9 7 237,881 1,348,101 Fu n d b a l a n c e s , e n d i n g 52 8 , 6 8 0 $ 65 9 , 3 5 8 $ 8, 3 4 1 $ - $ 14 , 6 2 7 $ 220,457 $ 1,431,463$ 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 1 1 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 S T A T E M E N T O F R E V E N U E S , E X P E N D I T U R E S AN D C H A N G E S I N F U N D B A L A N C E S NO N M A J O R G O V E R N M E N T A L F U N D S Sp e c i a l R e v e n u e F u n d s 55 (Continued) Debt Service Total CharterNonmajor Aquatic High SchoolGovernmental GO Bonds Facility Construction Total Funds Revenues: Property taxes529,060$ -$ -$ -$ 529,060$ Other taxes- - - - 714,120 Intergovernmental revenues- - 56,465 56,465 56,465 Fines and forfeitures- - - - 93,999 Miscellaneous- - - - 108,533 Interest income3,163 - 591 591 8,227 Total revenues532,223 - 57,056 57,056 1,510,404 Expenditures: Current: General government19,694$ 258$ 570$ 828$ 20,522$ Public safety - - - - 99,064 Public works- - - - 318,937 Capital outlay- - 56,465 56,465 181,198 Debt service: Principal 465,351 - - - 465,351 Interest 436,736 - - - 436,736 Total expenditures921,781 258 57,035 57,293 1,521,808 Excess (deficiency) of revenues over (under) expenditures before other financing sources(389,558) (258) 21 (237) (11,404) Other financing sources: Transfers (out)- - - - (295,029) Transfers in489,580 - - - 489,580 Total other financing sources (uses)489,580 - - - 194,551 Net change in fund balance100,022 (258) 21 (237) 183,147 Fund balances, beginning1,133,948 258 74,072 74,330 2,556,379 Fund balances, ending1,233,970$ -$ 74,093$ 74,093$ 2,739,526$ MIAMI SHORES VILLAGE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2011 Capital Projects 56 Lo c a l O p t i o n G a s T a x Tr a n s p o r a t i o n S u r t a x Va r i a n c e w i t h Variance with Fi n a l B u d g e t Final Budget B u d g e t e d A m o u n t s Ac t u a l Po s i t i v e B u d g e t e d A m o u n t s ActualPositive Or i g i n a l Fi n a l Am o u n t s (N e g a t i v e ) Or i g i n a l Fi n a l Amounts(Negative) Re v e n u e s : O t h e r t a x e s 3 5 0 , 5 7 0 $ 3 5 0 , 5 7 0 $ 3 7 3 , 1 9 0 $ 2 2 , 6 2 0 $ 2 7 7 , 3 9 3 $ 2 7 7 , 3 9 3 $ 3 4 0 , 9 3 0 $ 63,537$ I n t e r e s t i n c o m e 9, 0 0 0 9, 0 0 0 1, 5 2 9 (7 , 4 7 1 ) 1, 0 0 0 1, 0 0 0 892 (108) T o t a l r e v e n u e s 3 5 9 , 5 7 0 3 5 9 , 5 7 0 3 7 4 , 7 1 9 1 5 , 1 4 9 2 7 8 , 3 9 3 2 7 8 , 3 9 3 341,822 63,429 Ex p e n d i t u r e s : C u r r e n t : P u b l i c w o r k s 39 3 , 9 5 3 39 9 , 9 5 3 12 4 , 9 8 0 27 4 , 9 7 3 34 2 , 9 1 4 34 2 , 9 1 4 196,976 145,938 T o t a l e x p e n d i t u r e s 39 3 , 9 5 3 39 9 , 9 5 3 12 4 , 9 8 0 27 4 , 9 7 3 34 2 , 9 1 4 34 2 , 9 1 4 196,976 145,938 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 e x p e n d i t u r e s (3 4 , 3 8 3 ) (4 0 , 3 8 3 ) 24 9 , 7 3 9 29 0 , 1 2 2 (6 4 , 5 2 1 ) (6 4 , 5 2 1 ) 144,846 209,367 Ot h e r f i n a n c i n g s o u r c e s ( u s e s ) T r a n s f e r s o u t (9 3 , 7 0 2 ) (9 3 , 7 0 2 ) (9 3 , 7 0 2 ) - - - - - T r a n s f e r f r o m u n a p p r o p r i a t e d f u n d b a l a n c e 12 8 , 0 8 5 13 4 , 0 8 5 - (1 3 4 , 0 8 5 ) 64 , 5 2 1 64 , 5 2 1 - (64,521) 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 ) 34 , 3 8 3 40 , 3 8 3 (9 3 , 7 0 2 ) (1 3 4 , 0 8 5 ) 64 , 5 2 1 64 , 5 2 1 - (64,521) Ne t c h a n g e i n f u n d b a l a n c e - - 15 6 , 0 3 7 15 6 , 0 3 7 $ - - 144,846 144,846$ Fu n d b a l a n c e s , b e g i n n i n g - - 50 3 , 3 2 1 - - 383,834 Fu n d b a l a n c e s , e n d i n g - $ - $ 65 9 , 3 5 8 $ - $ - $ 528,680$ Sp e c i a l R e v e n u e F u n d s MI A M I S H O R E S V I L L A G E , F L O R I D A SC H E D U L E S O F R E V E N U E S , E X P E N D I T U R E S A N D C H A N G E S I N F U N D B A L A N C E S - B U D G E T A N D A C T U A L NO N M A J O R G O V E R N M E N T A L F U N D S 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 1 1 57 Va r i a n c e w i t h V a r i a n c e w i t h Fi n a l B u d g e t F i n a l B u d g e t B u d g e t e d A m o u n t s A c t u a l P o s i t i v e B u d g e t e d A m o u n t s A c t u a l P o s i t i v e Or i g i n a l Fi n a l Am o u n t s (N e g a t i v e ) Or i g i n a l Fi n a l Amounts(Negative) Re v e n u e s : P r o p e r t y t a x e s 5 3 1 , 7 8 4 $ 5 4 0 , 0 3 4 $ 5 2 9 , 0 6 0 $ ( 1 0 , 9 7 4 ) $ - $ - $ - $ -$ I n t e r e s t i n c o m e - - 3, 1 6 3 3, 1 6 3 1 2 5 12 5 3,297 3,172 T o t a l r e v e n u e s 5 3 1 , 7 8 4 5 4 0 , 0 3 4 5 3 2 , 2 2 3 ( 7 , 8 1 1 ) 1 2 5 1 2 5 3,297 3,172 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 1 1 , 9 5 0 2 0 , 2 0 0 1 9 , 6 9 4 5 0 6 - - - - C a p i t a l o u t l a y - - - - 3 2 0 , 9 2 5 2 , 7 0 0 , 1 3 1 8 4 6 , 4 1 8 1,853,713 D e b t s e r v i c e : P r i n c i p a l 5 6 9 , 6 9 5 5 6 9 , 6 9 5 4 6 5 , 3 5 1 1 0 4 , 3 4 4 - - - - I n t e r e s t 4 3 9 , 7 1 9 43 9 , 7 1 9 43 6 , 7 3 6 2, 9 8 3 - - - - T o t a l e x p e n d i t u r e s 1 , 0 2 1 , 3 6 4 1, 0 2 9 , 6 1 4 92 1 , 7 8 1 10 7 , 8 3 3 32 0 , 9 2 5 2, 7 0 0 , 1 3 1 846,418 1,853,713 (D e f i c i e n c y ) o f r e v e n u e s o v 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 ( 4 8 9 , 5 8 0 ) (4 8 9 , 5 8 0 ) (3 8 9 , 5 5 8 ) 10 0 , 0 2 2 (3 2 0 , 8 0 0 ) (2 , 7 0 0 , 0 0 6 ) (843,121) 1,856,885 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 i n 4 8 9 , 5 8 0 4 8 9 , 5 8 0 4 8 9 , 5 8 0 - 2 6 7 , 8 0 0 2 6 7 , 8 0 0 2 6 7 , 8 0 0 - T r a n s f e r s o u t - - - - - - - - A p p r o p r i a t i o n s f r o m p r i o r y e a r f u n d b a l a n c e - - - - 5 3 , 0 0 0 2, 4 3 2 , 2 0 6 - (2,432,206) 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 4 8 9 , 5 8 0 48 9 , 5 8 0 48 9 , 5 8 0 - 3 2 0 , 8 0 0 2, 7 0 0 , 0 0 6 267,800 (2,432,206) Ne t c h a n g e i n f u n d b a l a n c e - - 10 0 , 0 2 2 10 0 , 0 2 2 $ - - (575,321) (575,321)$ Fu n d b a l a n c e s , b e g i n n i n g - - 1, 1 3 3 , 9 4 8 - - 2,237,962 Fu n d b a l a n c e s , e n d i n g - $ - $ 1, 2 3 3 , 9 7 0 $ - $ - $ 1,662,641$ Ca p i t a l I m p r o v e m e n t F u n d MI A M I S H O R E S V I L L A G E , F L O R I D A SC H E D U L E S O F R E V E N U E S , E X P E N D I T U R E S A N D C H A N G E S I N FU N D B A L A N C E S - B U D G E T A N D A C T U A L N O N M A J O R G O V E R N M E N T A L F U N D S 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 1 1 De b t S e r v i c e F u n d 58 (Continued) 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 equivalents857,110$ 491,269$ 1,348,379$ Accounts receivable - net 81,115 - 81,115 Inventories- 35,969 35,969 Prepaid items153,335 - 153,335 Total current assets1,091,560 527,238 1,618,798 Capital assets: Capital assets not being depreciated- 7,127 7,127 Capital assets being depreciated, net - 682,528 682,528 Total noncurrent assets- 689,655 689,655 Total assets 1,091,560$ 1,216,893$ 2,308,453$ LIABILITIES Current liabilities: Accounts payable and accrued liabilities -$ 10,265$ 10,265$ Compensated absences- 9,520 9,520 Capital lease- 109,253 109,253 Total current liabilities- 129,038 129,038 Noncurrent liabilities: Compensated absences- 16,889 16,889 Capital lease- 50,354 50,354 Claims payable340,025 - 340,025 Total noncurrent liabilities340,025 67,243 407,268 Total liabilities340,025 196,281 536,306 NET ASSETS Invested in capital assets, net of related debt - 530,048 530,048 Unrestricted751,535 490,564 1,242,099 Total net assets751,535$ 1,020,612$ 1,772,147$ MIAMI SHORES VILLAGE, FLORIDA COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS SEPTEMBER 30, 2011 59 Risk Fleet Management Maintenance Fund Fund Total Revenues: Charges for services835,111$ 1,077,723$ 1,912,834$ Operating expenses: Administrative and general 49,375$ 545,895$ 595,270$ Personnel expenses- 213,922 213,922 Depreciation- 188,572 188,572 Insurance premiums564,333 94,048 658,381 Insurance claims96,982 6,328 103,310 Total operating expenses710,690 1,048,765 1,759,455 Operating income124,421 28,958 153,379 Non-operating revenues (expenses): Interest income3,040 1,542 4,582 Interest expense- (6,806) (6,806) Total non-operating revenues (expenses)3,040 (5,264) (2,224) Income before contributions127,461 23,694 151,155 Contributions- 32,671 32,671 Change in net assets127,461 56,365 183,826 Net assets, beginning624,074 964,247 1,588,321 Net assets, ending751,535$ 1,020,612$ 1,772,147$ MIAMI SHORES VILLAGE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS INTERNAL SERVICE FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2011 60 RiskFleet ManagementMaintenance Fund Fund Total Cash flows from operating activities: Cash received from customers, governments and other funds816,023$ 1,077,723$ 1,893,746$ Cash paid to suppliers(742,038) (696,443) (1,438,481) Cash paid for employees- (174,278) (174,278) Net cash provided by operating activities73,985 207,002 280,987 Cash flows from capital related financing activities: Acquisition and construction of fixed assets- (212,511) (212,511) Capital contributions- 32,671 32,671 Principal retirements of capital debt - (102,447) (102,447) Interest paid on capital debt - (6,806) (6,806) Net cash (used in) capital and related financing activities- (289,093) (289,093) Cash flows from investing activities: Interest and other income3,040 1,542 4,582 Net cash provided by investing activities3,040 1,542 4,582 Net increase (decrease) in cash and cash equivalents77,025 (80,549) (3,524) Cash and cash equivalents, October 1780,085 571,818 1,351,903 Cash and cash equivalents, September 30857,110$ 491,269$ 1,348,379$ Reconciliation of operating income to net cash provided by operating activities: Operating income124,421$ 28,958$ 153,379$ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation - 188,572 188,572 Change in assets and liabilities: (Increase) decrease in: Accounts receivable(19,088) - (19,088) Inventories- 2,545 2,545 Prepaids3,947 - 3,947 Increase (decrease) in: Accounts payable and accrued liabilities - 6,865 6,865 Claims payable(35,295) - (35,295) Compensated absences- (19,938) (19,938) Total adjustments(50,436) 178,044 127,608 Net cash provided by operating activities73,985$ 207,002$ 280,987$ MIAMI SHORES VILLAGE, FLORIDA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2011 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 equivalents998,062$ 247,187$ 1,245,249$ Receivables: Accrued interest and dividends39,082 25,188 64,270 Total receivables39,082 25,188 64,270 Investments, at fair value U.S. Government securities2,191,542 1,380,177 3,571,719 Municipal bonds381,057 247,927 628,984 Corporate bonds1,973,780 1,301,121 3,274,901 Mutual funds- equity3,669,725 2,935,639 6,605,364 Common stocks2,875,643 2,034,471 4,910,114 Total investments11,091,747 7,899,335 18,991,082 Total assets12,128,891 8,171,710 20,300,601 LIABILITIES DROP liability116,105 323,567 439,672 Total liabilities116,105 323,567 439,672 NET ASSETS Held in trust for pension benefits12,012,786$ 7,848,143$ 19,860,929$ MIAMI SHORES VILLAGE, FLORIDA COMBINING STATEMENT OF FIDUCIARY NET ASSETS PENSION TRUST FUNDS SEPTEMBER 30, 2011 62 General Police Employee's PensionPension Trust Trust Total ADDITIONS Contributions: Employer 951,650$ 125,000$ 1,076,650$ Employees205,997 170,179 376,176 State of Florida161,569 - 161,569 Total contributions1,319,216 295,179 1,614,395 Investment income: Unrealized (losses)(743,009) (570,135) (1,313,144) Realized gains 427,201 333,875 761,076 Interest and dividend income 297,666 202,599 500,265 Total investment (losses)(18,142) (33,661) (51,803) Less investment expenses136,783 103,523 240,306 Net investment income(154,925) (137,184) (292,109) Total additions1,164,291 157,995 1,322,286 DEDUCTIONS Benefits paid840,500 481,481 1,321,981 Changes in net assets323,791 (323,486) 305 Net assets- beginning11,688,995 8,171,629 19,860,624 Net assets- ending12,012,786$ 7,848,143$ 19,860,929$ MIAMI SHORES VILLAGE, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS PENSION TRUST FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 63 Balance Balance September 30, September 30, 2010 Additions Deductions 2011 ASSETS Cash and cash equivalents144,925$ 7,910$ -$ 152,835$ LIABILITIES Other liabilities144,925$ 7,910$ -$ 152,835$ MIAMI SHORES VILLAGE, FLORIDA STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUND SEPTEMBER 30, 2011 POLICE INSURANCE TRUST AGENCY FUND 64 STATISTICAL SECTION MIAMI SHORES VILLAGE, FLORIDA STATISTICAL SECTION This part of the Miami Shore Village’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Village’s overall financial health. Contents Page Financial Trends 65-69 These schedules contain trend information to help the reader understand how the Village’s financial performance and well-being have changed over time. Revenue Capacity 70-74 These schedules contain information to help the reader assess the Village’s most significant local revenue source, the property tax. Debt Capacity 75-77 These schedules contain information to help the reader assess the affordability of the Village’s current levels of outstanding debt and the Village’s ability to issue additional debt in future. Demographic and Economic Information 78-79 These schedules offer demographic and economic indicators to help the reader understand the environment within which the Village’s financial activities take place. Operating Information 80 These schedules contain service and infrastructure data to help the reader understand how the information in the Village’s financial report relates to the services the Village provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant years. Fi s c a l Y e a r 20 1 1 20 1 0 20 0 9 20 0 8 20 0 7 20 0 6 200520042003 Go v e r n m e n t a l a c t i v i t i e s : I n v e s t e d i n c a p i t a l a s s e t s , n e t o f r e l a t e d d e b t 1 2 , 2 7 9 , 7 7 6 $ 1 1 , 5 0 7 , 7 1 3 $ 1 2 , 2 7 6 , 6 3 1 $ 1 1 , 2 5 5 , 6 2 0 $ 9 , 3 9 3 , 1 3 8 $ 4 , 9 9 3 , 2 4 4 $ 4 , 3 2 5 , 8 2 3 $ 2 , 0 5 5 , 7 2 5 $ 2,665,994$ R e s t r i c t e d 3 , 9 7 5 , 9 8 3 3 , 5 0 9 , 1 3 6 3 , 0 2 5 , 9 3 3 4 , 1 1 2 , 3 6 6 3 , 3 4 5 , 1 5 4 3 , 4 8 7 , 3 1 3 3 , 6 2 7 , 2 6 3 6 , 8 9 6 , 2 3 4 2,229,354 U n r e s t r i c t e d 9 , 9 1 6 , 2 0 1 9 , 3 5 0 , 9 0 4 8 , 9 0 1 , 6 3 5 6 , 3 7 3 , 5 6 8 4 , 5 0 6 , 9 5 4 ( 6 5 3 , 5 3 1 ) ( 1 , 8 6 0 , 1 2 8 ) (4,887,241) 245,014 To t a l g o v e r n m e n t a l a c t i v i t i e s n e t a s s e t s 2 6 , 1 7 1 , 9 6 0 2 4 , 3 6 7 , 7 5 3 2 4 , 2 0 4 , 1 9 9 2 1 , 7 4 1 , 5 5 4 1 7 , 2 4 5 , 2 4 6 7 , 8 2 7 , 0 2 6 6 , 0 9 2 , 9 5 8 4,064,718 5,140,362 Bu s i n e s s - t y p e a c t i v i t i e s : I n v e s t e d i n c a p i t a l a s s e t s , n e t o f r e l a t e d d e b t 1 , 9 2 4 , 0 6 1 2 , 0 4 3 , 7 9 5 5 5 8 , 6 7 1 6 2 4 , 3 9 8 7 7 0 , 3 0 1 7 4 8 , 1 2 0 7 0 4 , 5 7 4 1 , 0 3 6 , 8 4 2 864,077 R e s t r i c t e d - - - - - - - U n r e s t r i c t e d 2 , 3 8 5 , 3 3 1 2 , 0 3 2 , 8 5 2 1 , 5 7 8 , 6 4 9 1 , 1 3 2 , 4 3 0 6 2 5 , 8 5 1 5 4 0 , 4 6 2 520,859 (95,782) (102,566) To t a l b u s i n e s s - t y p e a c t i v i t i e s n e t a s s e t s 4 , 3 0 9 , 3 9 2 4 , 0 7 6 , 6 4 7 2 , 1 3 7 , 3 2 0 1 , 7 5 6 , 8 2 8 1 , 3 9 6 , 1 5 2 1 , 2 8 8 , 5 8 2 1 , 2 2 5 , 4 3 3 941,060 761,511 Pr i m a r y g o v e r n m e n t : I n v e s t e d i n c a p i t a l a s s e t s , n e t o f r e l a t e d d e b t 1 4 , 2 0 3 , 8 3 7 1 3 , 5 5 1 , 5 0 8 1 2 , 8 3 5 , 3 0 2 1 1 , 8 8 0 , 0 1 8 1 0 , 1 6 3 , 4 3 9 5 , 7 4 1 , 3 6 4 5 , 0 3 0 , 3 9 7 3 , 0 9 2 , 5 6 7 3,530,071 R e s t r i c t e d 3 , 9 7 5 , 9 8 3 3 , 5 0 9 , 1 3 6 3 , 0 2 5 , 9 3 3 4 , 1 1 2 , 3 6 6 3 , 3 4 5 , 1 5 4 3 , 4 8 7 , 3 1 3 3 , 6 2 7 , 2 6 3 6 , 8 9 6 , 2 3 4 2,229,354 U n r e s t r i c t e d 1 2 , 3 0 1 , 5 3 2 1 1 , 3 8 3 , 7 5 6 1 0 , 4 8 0 , 2 8 4 7 , 5 0 5 , 9 9 8 5 , 1 3 2 , 8 0 5 ( 1 1 3 , 0 6 9 ) ( 1 , 3 3 9 , 2 6 9 ) (4,983,023) 142,448 To t a l p r i m a r y g o v e r n m e n t n e t a s s e t s 3 0 , 4 8 1 , 3 5 2 $ 2 8 , 4 4 4 , 4 0 0 $ 2 6 , 3 4 1 , 5 1 9 $ 2 3 , 4 9 8 , 3 8 2 $ 1 8 , 6 4 1 , 3 9 8 $ 9 , 1 1 5 , 6 0 8 $ 7 , 3 1 8 , 3 9 1 $ 5,005,778$ 5,901,873$ (1 ) I n f o r m a t i o n f o r f i s c a l y e a r e n d i n g S e p t e m b e r 3 0 , 2 0 0 2 i s u n a v a i l a b l e i n t h i s f o r m a t s i n c e t h e V i l l a g e i m p l e m e n t e d Go v e r n m e n t a l A c c o u n t i n g S t a n d a r d s B o a r d S t a t e m e n t N o . 3 4 , B a s i c F i n a n c i a l S t a t e m e n t s a n d M a n a g e m e n t ' s D i s c u s s i o n an d A n a l y s i s f o r S t a t e a n d L o c a l G o v e r n m e n t s . MI A M I S H O R E S V I L L A G E , F L O R I D A NE T A S S E T S B Y C O M P O N E N T FO R T H E L A S T T E N F I S C A L Y E A R S ( 1 ) (a c c r u a l b a s i s o f a c c o u n t i n g ) 65 20 1 1 20 1 0 20 0 9 20 0 8 20 0 7 20 0 6 200520042003 Go v e r n m e n t a l a c t i v i t i e s : G e n e r a l g o v e r n m e n t 2 , 3 8 5 , 0 6 9 $ 2 , 3 9 0 , 7 1 9 $ 2 , 4 8 9 , 4 2 6 $ 2 , 3 2 5 , 0 1 9 $ 2 , 9 4 1 , 2 9 1 $ 4 , 5 0 9 , 7 1 4 $ 3 , 3 3 0 , 8 7 3 $ 3 , 5 1 7 , 3 0 7 $ 2,420,450$ P u b l i c s a f e t y 5 , 5 9 6 , 6 9 2 5 , 2 1 6 , 7 2 4 5 , 0 5 6 , 5 7 3 4 , 6 4 9 , 9 8 5 4 , 4 5 1 , 3 3 6 4 , 1 6 6 , 9 3 2 4 , 1 4 4 , 8 3 7 3 , 6 9 9 , 8 0 5 3,891,173 P u b l i c w o r k s 1 , 9 4 9 , 9 6 0 2 , 2 0 1 , 6 6 7 2 , 2 3 7 , 9 6 2 2 , 4 0 7 , 0 3 2 2 , 3 5 7 , 0 1 2 2 , 2 3 2 , 7 1 4 2 , 1 3 3 , 1 0 8 1 , 4 0 9 , 9 8 2 1,749,842 C u l t u r e a n d r e c r e a t i o n 2 , 4 9 8 , 4 0 8 2 , 3 4 1 , 3 1 0 2 , 4 1 7 , 2 3 2 2 , 3 2 1 , 3 9 2 2 , 1 9 0 , 5 0 7 2 , 2 7 3 , 6 8 6 2 , 3 1 7 , 9 3 6 2 , 4 8 8 , 3 7 8 2,280,170 I n t e r e s t o n d e b t 4 4 3 , 5 4 2 4 6 5 , 6 7 2 4 8 6 , 6 5 8 5 0 0 , 0 4 5 5 0 4 , 4 1 1 4 4 8 , 9 8 6 544,778 186,174 159,124 To t a l g o v e r n m e n t a l a c t i v i t i e s e x p e n s e s 1 2 , 8 7 3 , 6 7 1 1 2 , 6 1 6 , 0 9 2 1 2 , 6 8 7 , 8 5 1 1 2 , 2 0 3 , 4 7 3 1 2 , 4 4 4 , 5 5 7 1 3 , 6 3 2 , 0 3 2 1 2 , 4 7 1 , 5 3 2 11,301,646 10,500,759 Bu s i n e s s - t y p e a c t i v i t i e s : S a n i t a t i o n 2 , 2 5 7 , 2 8 5 2 , 3 8 2 , 8 9 3 2 , 2 6 2 , 4 4 6 2 , 2 6 0 , 3 7 4 2 , 3 2 8 , 9 3 0 2 , 2 7 4 , 9 8 3 2 , 2 0 1 , 4 8 0 1 , 4 8 6 , 9 8 3 1,390,255 S t o r m w a t e r 1 9 0 , 9 9 2 2 0 6 , 3 0 0 1 6 0 , 8 0 8 1 3 3 , 9 1 3 1 5 0 , 7 8 3 1 1 1 , 9 3 1 133,396 149,011 126,965 To t a l b u s i n e s s - t y p e a c t i v i t i e s e x p e n s e s 2 , 4 4 8 , 2 7 7 2 , 5 8 9 , 1 9 3 2 , 4 2 3 , 2 5 4 2 , 3 9 4 , 2 8 7 2 , 4 7 9 , 7 1 3 2 , 3 8 6 , 9 1 4 2 , 3 3 4 , 8 7 6 1,635,994 1,517,220 To t a l p r i m a r y g o v e r n m e n t e x p e n s e s 1 5 , 3 2 1 , 9 4 8 1 5 , 2 0 5 , 2 8 5 1 5 , 1 1 1 , 1 0 5 1 4 , 5 9 7 , 7 6 0 1 4 , 9 2 4 , 2 7 0 1 6 , 0 1 8 , 9 4 6 1 4 , 8 0 6 , 4 0 8 12,937,640 12,017,979 Pr o g r a m r e v e n u e s : Go v e r n m e n t a l a c t i v i t i e s : C h a r g e s f o r s e r v i c e s : G e n e r a l g o v e r n m e n t 1 , 1 7 7 , 0 4 7 7 4 7 , 3 5 3 9 1 4 , 0 6 2 1 2 8 , 3 8 9 1 1 9 , 9 0 3 1 6 9 , 0 5 8 1 , 6 5 5 , 3 5 0 1 , 3 0 5 , 4 5 0 1,415,025 P u b l i c s a f e t y 7 7 7 , 6 5 5 7 3 3 , 9 2 6 7 4 6 , 0 5 5 4 2 4 , 3 5 3 4 7 2 , 4 7 0 3 7 7 , 4 7 0 2 7 4 , 3 2 2 2 5 3 , 1 2 1 310,430 P u b l i c w o r k s 8 1 4 , 6 0 0 7 5 0 , 1 4 5 1 , 0 8 2 , 6 6 7 6 4 4 , 1 9 7 6 1 1 , 0 9 7 6 7 4 , 8 5 2 2 8 5 , 6 1 1 - - C u l t u r e a n d r e c r e a t i o n 1 , 1 1 7 , 1 6 0 1 , 0 7 9 , 7 2 7 9 6 5 , 5 4 1 8 5 4 , 7 4 7 8 3 7 , 4 9 2 7 5 9 , 9 6 2 - - - O p e r a t i n g g r a n t s a n d c o n t r i b u t i o n s 2 1 7 , 3 0 3 9 5 , 6 9 2 - - - 1 , 9 0 0 , 2 5 6 6 9 7 , 1 6 0 8 9 , 5 4 5 637,595 C a p i t a l g r a n t s a n d c o n t r i b u t i o n s 6 5 , 9 2 1 1 7 1 , 5 4 9 - - - 1 8 8 , 7 0 9 2 , 1 1 1 , 2 9 1 - - To t a l g o v e r n m e n t a l a c t i v i t i e s p r o g r a m r e v e n u e s 4 , 1 6 9 , 6 8 6 3 , 5 7 8 , 3 9 2 3 , 7 0 8 , 3 2 5 2 , 0 5 1 , 6 8 6 2 , 0 4 0 , 9 6 2 4 , 0 7 0 , 3 0 7 5 , 0 2 3 , 7 3 4 1,648,116 2,363,050 Bu s i n e s s - t y p e a c t i v i t i e s : C h a r g e s f o r s e r v i c e s : S a n i t a t i o n 2 , 6 6 5 , 0 4 1 2 , 8 8 6 , 1 0 7 2 , 7 8 1 , 7 0 0 2 , 7 2 9 , 7 9 3 2 , 5 0 8 , 2 3 6 2 , 5 3 8 , 2 6 9 2 , 6 6 6 , 3 4 0 1 , 8 4 4 , 8 0 7 1,734,146 S t o r m w a t e r 2 4 8 , 6 6 8 2 4 7 , 3 4 9 2 2 8 , 3 9 3 2 2 5 , 7 1 9 1 9 5 , 5 8 2 1 8 9 , 4 2 8 209,852 165,094 142,704 To t a l b u s i n e s s - t y p e a c t i v i t i e s p r o g r a m r e v e n u e s 2 , 9 1 3 , 7 0 9 3 , 1 3 3 , 4 5 6 3 , 0 1 0 , 0 9 3 2 , 9 5 5 , 5 1 2 2 , 7 0 3 , 8 1 8 2 , 7 2 7 , 6 9 7 2 , 8 7 6 , 1 9 2 2,009,901 1,876,850 To t a l p r i m a r y g o v e r n m e n t p r o g r a m r e v e n u e 7 , 0 8 3 , 3 9 5 $ 6 , 7 1 1 , 8 4 8 $ 6 , 7 1 8 , 4 1 8 $ 5 , 0 0 7 , 1 9 8 $ 4 , 7 4 4 , 7 8 0 $ 6 , 7 9 8 , 0 0 4 $ 7 , 8 9 9 , 9 2 6 $ 3,658,017$ 4,239,900$ (1 ) I n f o r m a t i o n f o r f i s c a l y e a r e n d i n g S e p t e m b e r 3 0 , 2 0 0 2 i s u n a v a i l a b l e i n t h i s f o r m a t s i n c e t h e V i l l a g e i m p l e m e n t e d Go v e r n m e n t a l A c c o u n t i n g S t a n d a r d s B o a r d S t a t e m e n t N o . 3 4 , B a s i c F i n a n c i a l S t a t e m e n t s a n d M a n a g e m e n t ' s D i s c u s s i o n an d A n a l y s i s f o r S t a t e a n d L o c a l G o v e r n m e n t s . MI A M I S H O R E S V I L L A G E , F L O R I D A CH A N G E S I N N E T A S S E T S FO R T H E L A S T T E N F I S C A L Y E A R S ( 1 ) Fi s c a l Y e a r (C o n t i n u e d ) 66 20 1 1 20 1 0 20 0 9 20 0 8 20 0 7 20 0 6 20 0 5 20042003 Ne t ( e x p e n s e s ) r e v e n u e : Go v e r n m e n t a l a c t i v i t i e s ( 8 , 7 0 3 , 9 8 5 ) $ ( 9 , 0 3 7 , 6 9 9 ) $ ( 8 , 4 7 9 , 2 2 5 ) $ ( 9 , 1 9 4 , 0 0 5 ) $ ( 1 0 , 1 5 0 , 6 7 9 ) $ ( 9 , 5 6 1 , 7 2 5 ) $ ( 7 , 4 4 7 , 7 9 8 ) $ ( 9 , 6 5 3 , 5 3 0 ) $ (8,137,709)$ Bu s i n e s s - t y p e a c t i v i t i e s 4 6 5 , 4 3 2 5 4 4 , 2 6 3 5 9 0 , 8 3 9 5 6 1 , 2 2 5 2 2 4 , 1 0 5 3 4 0 , 7 8 3 541,316 373,907 359,630 (8 , 2 3 8 , 5 5 3 ) ( 8 , 4 9 3 , 4 3 6 ) ( 7 , 8 8 8 , 3 8 6 ) ( 8 , 6 3 2 , 7 8 0 ) ( 9 , 9 2 6 , 5 7 4 ) ( 9 , 2 2 0 , 9 4 2 ) ( 6 , 9 0 6 , 4 8 2 ) (9,279,623) (7,778,079) Ge n e r a l r e v e n u e s a n d o t h e r c h a n g e s i n n e t a s s e t s : Go v e r n m e n t a l a c t i v i t i e s : P r o p e r t y t a x e s 6 , 1 4 3 , 8 0 6 6 , 5 8 3 , 8 8 3 7 , 2 7 5 , 7 4 6 7 , 2 2 4 , 3 3 8 7 , 3 7 3 , 4 8 4 6 , 2 6 0 , 3 9 2 5 , 3 7 2 , 7 9 0 5 , 3 9 8 , 4 1 7 4,362,922 P u b l i c s e r v i c e s t a x 2 , 1 3 7 , 4 7 3 2 , 2 2 2 , 7 4 3 2 , 1 1 3 , 0 3 2 3 , 0 7 6 , 1 9 8 2 , 9 2 3 , 4 9 9 2 , 8 4 9 , 9 8 2 2 , 1 4 5 , 7 8 4 1 , 2 1 3 , 7 7 5 1,221,854 I n t e r g o v e r n m e n t a l 9 3 6 , 2 1 5 7 9 7 , 7 7 3 7 8 9 , 9 2 2 8 9 5 , 1 8 8 9 5 4 , 6 0 0 1 , 0 5 9 , 0 6 7 1 , 1 6 9 , 9 5 0 1 , 4 4 2 , 2 7 4 961,636 M i s c e l l a n e o u s 1 , 0 1 9 , 3 2 0 9 5 0 , 0 4 0 4 4 7 , 7 4 1 5 6 2 , 9 4 1 5 7 7 , 7 1 9 3 0 8 , 4 2 6 2 3 9 , 3 2 5 2 8 4 , 2 2 4 117,731 I n t e r e s t e a r n i n g - u n r e s t r i c t e d 3 6 , 3 7 8 3 8 , 9 7 8 1 0 0 , 4 2 9 2 4 2 , 5 6 3 3 9 8 , 4 6 3 5 0 4 , 7 4 3 1 8 9 , 6 9 9 4 3 , 3 6 3 55,096 G a i n o n s a l e o f c a p i t a l a s s e t s - - - - 2 , 2 6 9 3 , 1 7 5 1 , 6 5 1 - T r a n s f e r s 2 3 5 , 0 0 0 ( 1 , 3 9 2 , 1 6 4 ) 2 1 5 , 0 0 0 2 1 5 , 0 0 0 2 1 0 , 0 0 0 3 1 0 , 0 0 0 210,000 195,834 (17,500) To t a l g o v e r n m e n t a l a c t i v i t i e s 1 0 , 5 0 8 , 1 9 2 9 , 2 0 1 , 2 5 3 1 0 , 9 4 1 , 8 7 0 1 2 , 2 1 6 , 2 2 8 1 2 , 4 4 0 , 0 3 4 1 1 , 2 9 5 , 7 8 5 9 , 3 2 9 , 1 9 9 8,577,887 6,701,739 Bu s i n e s s - t y p e a c t i v i t i e s : I n v e s t m e n t e a r n i n g s 2 , 3 1 3 2 , 9 0 0 4 , 6 5 3 1 4 , 4 5 1 2 2 , 3 7 7 6 , 8 6 8 8 , 4 2 7 1 , 4 7 7 263 O t h e r g e n e r a l r e v e n u e s - - - - - 2 5 , 5 0 0 6 6 , 6 1 5 - - T r a n s f e r s ( 2 3 5 , 0 0 0 ) 1 , 3 9 2 , 1 6 4 ( 2 1 5 , 0 0 0 ) ( 2 1 5 , 0 0 0 ) ( 2 1 0 , 0 0 0 ) ( 3 1 0 , 0 0 0 ) ( 2 1 0 , 0 0 0 ) (195,834) 17,500 To t a l b u s i n e s s - t y p e a c t i v i t i e s ( 2 3 2 , 6 8 7 ) 1 , 3 9 5 , 0 6 4 ( 2 1 0 , 3 4 7 ) ( 2 0 0 , 5 4 9 ) ( 1 8 7 , 6 2 3 ) ( 2 7 7 , 6 3 2 ) ( 1 3 4 , 9 5 8 ) (194,357) 17,763 To t a l p r i m a r y g o v e r n m e n t 1 0 , 2 7 5 , 5 0 5 1 0 , 5 9 6 , 3 1 7 1 0 , 7 3 1 , 5 2 3 1 2 , 0 1 5 , 6 7 9 1 2 , 2 5 2 , 4 1 1 1 1 , 0 1 8 , 1 5 3 9 , 1 9 4 , 2 4 1 8,383,530 6,719,502 Ch a n g e i n n e t a s s e t s : Go v e r n m e n t a l a c t i v i t i e s 1 , 8 0 4 , 2 0 7 1 6 3 , 5 5 4 2 , 4 6 2 , 6 4 5 3 , 0 2 2 , 2 2 3 2 , 2 8 9 , 3 5 5 1 , 7 3 4 , 0 6 0 1 , 8 8 1 , 4 0 1 ( 1 , 0 7 5 , 6 4 3 ) (1,435,970) Bu s i n e s s - t y p e a c t i v i t i e s 2 3 2 , 7 4 5 1 , 9 3 9 , 3 2 7 3 8 0 , 4 9 2 3 6 0 , 6 7 6 3 6 , 4 8 2 6 3 , 1 5 1 406,358 179,550 377,393 To t a l p r i m a r y g o v e r n m e n t 2 , 0 3 6 , 9 5 2 $ 2 , 1 0 2 , 8 8 1 $ 2 , 8 4 3 , 1 3 7 $ 3 , 3 8 2 , 8 9 9 $ 2 , 3 2 5 , 8 3 7 $ 1 , 7 9 7 , 2 1 1 $ 2 , 2 8 7 , 7 5 9 $ (896,093)$ (1,058,577)$ (1 ) I n f o r m a t i o n f o r f i s c a l y e a r e n d i n g S e p t e m b e r 3 0 , 2 0 0 2 i s u n a v a i l a b l e i n t h i s f o r m a t s i n c e t h e V i l l a g e i m p l e m e n t e d Go v e r n m e n t a l A c c o u n t i n g S t a n d a r d s B o a r d S t a t e m e n t N o . 3 4 , B a s i c F i n a n c i a l S t a t e m e n t s a n d M a n a g e m e n t ' s D i s c u s s i o n an d A n a l y s i s f o r S t a t e a n d L o c a l G o v e r n m e n t s . Fi s c a l Y e a r MI A M I S H O R E S V I L L A G E , F L O R I D A CH A N G E S I N N E T A S S E T S (C o n t i n u e d ) FO R T H E L A S T T E N F I S C A L Y E A R S ( 1 ) 67 20 1 1 20 1 0 20 0 9 20 0 8 20 0 7 20 0 6 20 0 5 20 0 4 20032002 Ge n e r a l f u n d : R e s e r v e d - $ 1 3 4 , 5 6 9 $ 8 0 , 0 5 2 $ 7 1 , 9 2 3 $ 1 8 9 , 9 5 3 $ 1 9 9 , 4 3 5 $ 1 6 8 , 4 9 7 $ 1 7 8 , 7 8 6 $ 6 3 8 , 3 7 3 $ 411,836$ U n r e s e r v e d - 6 , 3 9 1 , 6 5 1 5 , 0 1 4 , 1 9 0 5 , 4 4 9 , 8 4 2 4 , 0 2 2 , 2 8 3 2 , 0 5 0 , 1 0 3 1 , 4 3 7 , 8 6 7 1 , 0 1 1 , 4 1 8 7 4 9 , 2 2 1 1,724,356 N o n s p e n d a b l e * 1 , 8 8 5 - - - - - - - - - R e s t r i c t e d * - - - - - - - - - - C o m m i t t e d * 6 3 , 1 0 9 - - - - - - - - - A s s i g n e d * - - - - - - - - - - U n a s s i g n e d * 7 , 6 0 9 , 7 1 6 - - - - - - - - - To t a l g e n e r a l f u n d 7 , 6 7 4 , 7 1 0 $ 6 , 5 2 6 , 2 2 0 $ 5 , 0 9 4 , 2 4 2 $ 5 , 5 2 1 , 7 6 5 $ 4 , 2 1 2 , 2 3 6 $ 2 , 2 4 9 , 5 3 8 $ 1 , 6 0 6 , 3 6 4 $ 1 , 1 9 0 , 2 0 4 $ 1,387,594$ 2,136,192$ Al l o t h e r g o v e r n m e n t a l f u n d s : R e s e r v e d - $ 5 , 2 4 7 , 6 4 5 $ 5 , 4 4 9 , 4 7 9 $ 4 , 3 0 0 , 2 5 6 $ 2 , 8 5 2 , 7 7 2 $ 2 , 4 3 9 , 0 4 4 $ 2 , 9 4 9 , 9 5 1 $ 6 , 5 4 6 , 8 7 5 $ 1 , 5 9 2 , 9 8 1 $ 14,981,677$ U n r e s e r v e d r e p o r t e d i n : S p e c i a l r e v e n u e f u n d s - 2 0 1 , 3 2 7 3 4 8 , 1 9 4 2 2 9 , 1 5 2 8 6 1 , 7 9 9 6 8 2 , 7 2 6 2 9 7 , 5 8 3 1 9 2 , 8 3 3 2 0 0 , 6 5 6 822,829 C a p i t a l p r o j e c t f u n d s - 5 6 6 , 2 5 1 6 0 3 , 7 3 5 5 5 1 , 8 3 7 5 6 0 , 1 7 1 1 , 0 2 9 , 5 5 7 ( 9 9 0 , 9 8 6 ) 2 9 8 , 0 7 8 8 9 2 , 4 7 5 144,261 N o n s p e n d a b l e * 6 1 , 2 2 5 - - - - - - - - - R e s t r i c t e d * 3 , 9 7 5 , 9 8 3 - - - - - - - - - C o m m i t t e d * 1 , 7 4 8 , 1 4 8 - - - - - - - - - A s s i g n e d * - - - - - - - - - - U n a s s i g n e d * - - - - - - - - - - To t a l a l l o t h e r g o v e r n m e n t a l f u n d s 5 , 7 8 5 , 3 5 6 $ 6 , 0 1 5 , 2 2 3 $ 6 , 4 0 1 , 4 0 8 $ 5 , 0 8 1 , 2 4 5 $ 4 , 2 7 4 , 7 4 2 $ 4 , 1 5 1 , 3 2 7 $ 2 , 2 5 6 , 5 4 8 $ 7 , 0 3 7 , 7 8 6 $ 2,686,112$ 15,948,767$ *D u r i n g F Y 2 0 1 1 t h e V i l l a g e i m p l e m e n t e d t h e n e w f u n d b a l a n c e c l a s s i f i c a t i o n s . Fi s c a l Y e a r MI A M I S H O R E S V I L L A G E , F L O R I D A FU N D B A L A N C E S F O R G O V E R N M E N T A L F U N D S FO R T H E L A S T T E N F I S C A L Y E A R S 68 20 1 1 20 1 0 20 0 9 20 0 8 20 0 7 20 0 6 20 0 5 200420032002 Re v e n u e s : Ta x e s 6 , 1 4 3 , 8 0 6 $ 6 , 5 8 3 , 8 8 3 $ 7 , 2 7 5 , 7 4 6 $ 7 , 2 2 4 , 3 3 8 $ 7 , 3 7 3 , 4 8 4 $ 6 , 2 6 0 , 3 9 2 $ 5 , 3 7 2 , 7 9 0 $ 6 , 0 8 7 , 8 0 0 $ 4 , 8 0 8 , 7 5 4 $ 5,674,923$ Pu b l i c s e r v i c e s t a x e s 2 , 8 5 1 , 5 9 3 2 , 8 7 4 , 6 4 5 2 , 9 0 6 , 8 6 1 2 , 9 2 5 , 4 3 1 2 , 9 2 3 , 4 9 9 2 , 8 4 9 , 9 8 2 2 , 4 3 1 , 3 9 5 5 3 8 , 5 3 7 1 , 2 2 1 , 8 5 4 - Li c e n s e s a n d p e r m i t s 1 , 0 5 2 , 6 2 6 6 5 8 , 8 3 3 6 7 1 , 6 7 4 6 8 2 , 9 5 1 6 6 6 , 6 2 8 7 7 6 , 1 9 9 7 9 0 , 2 5 7 6 4 5 , 2 3 8 4 3 3 , 1 5 6 396,766 In t e r g o v e r n m e n t a l 1 , 2 1 9 , 4 3 9 1 , 0 6 5 , 0 1 4 1 , 2 9 0 , 2 2 3 1 , 8 3 7 , 4 0 0 1 , 1 8 8 , 3 6 8 3 , 1 2 5 , 7 8 9 1 , 7 5 6 , 8 2 0 1 , 4 4 2 , 2 7 4 1 , 2 0 2 , 2 0 4 1,120,465 Ch a r g e s f o r s e r v i c e s 1 , 5 4 2 , 4 3 2 1 , 4 6 0 , 4 5 1 1 , 3 1 0 , 2 5 7 1 , 1 0 1 , 3 0 0 1 , 0 7 7 , 2 5 9 9 6 7 , 2 3 5 8 6 5 , 0 9 3 6 5 3 , 9 4 3 6 2 9 , 1 8 1 672,946 Fi n e s a n d f o r f e i t u r e s 4 2 3 , 9 0 5 4 4 4 , 9 4 4 4 9 5 , 5 0 3 2 6 7 , 4 3 5 2 9 7 , 0 7 5 2 3 7 , 9 0 8 2 6 4 , 7 4 2 2 5 3 , 1 2 1 2 4 9 , 5 6 0 264,248 Mi s c e l l a n e o u s 9 8 6 , 6 4 9 9 5 0 , 0 4 0 4 4 7 , 7 4 1 5 2 9 , 1 6 3 5 7 7 , 7 1 9 3 0 8 , 4 2 6 2 4 8 , 9 0 5 2 8 4 , 2 2 4 2 6 7 , 7 3 1 368,223 In v e s t m e n t e a r n i n g s 3 1 , 7 9 6 3 5 , 1 5 3 9 4 , 3 0 0 2 2 7 , 6 6 3 3 4 9 , 9 7 1 2 0 1 , 4 6 6 1 6 6 , 7 1 5 4 3 , 3 6 3 5 5 , 0 9 6 320,450 Co n t r i b u t i o n s - - - 1 5 , 5 7 0 1 9 , 1 4 8 2 2 , 2 4 3 2 , 2 2 1 , 5 8 1 4 9 , 9 7 0 3 1 , 9 0 6 252,857 Co n f i s c a t i o n p r o p e r t y - - - - - - - 31,697 60,870 96,352 To t a l r e v e n u e s 1 4 , 2 5 2 , 2 4 6 1 4 , 0 7 2 , 9 6 3 1 4 , 4 9 2 , 3 0 5 1 4 , 8 1 1 , 2 5 1 1 4 , 4 7 3 , 1 5 1 1 4 , 7 4 9 , 6 4 0 1 4 , 1 1 8 , 2 9 8 1 0 , 0 3 0 , 1 6 7 8,960,312 9,167,230 Ex p e n d i t u r e s : Ge n e r a l g o v e r n m e n t 2 , 3 9 1 , 5 5 6 2 , 2 3 5 , 8 5 5 2 , 2 8 4 , 7 7 5 2 , 1 3 1 , 5 3 5 2 , 6 0 4 , 1 0 9 3 , 8 3 1 , 7 9 1 2 , 9 7 2 , 1 2 6 2 , 6 3 5 , 9 1 5 2 , 2 1 2 , 2 3 3 1,900,939 Pu b l i c s a f e t y 5 , 3 9 9 , 5 8 9 5 , 0 2 2 , 5 4 2 5 , 0 5 0 , 2 3 9 4 , 6 5 9 , 9 0 0 4 , 2 5 7 , 4 9 3 3 , 5 8 1 , 6 2 1 3 , 7 5 1 , 4 7 6 3 , 5 8 5 , 6 9 9 3 , 5 8 3 , 9 7 4 3,920,484 Pu b l i c w o r k s 1 , 5 4 0 , 7 5 5 1 , 6 2 5 , 0 8 5 1 , 7 5 3 , 1 0 0 1 , 9 7 3 , 4 4 6 2 , 1 4 4 , 1 5 1 1 , 7 4 7 , 6 8 9 1 , 7 9 7 , 1 6 4 1 , 2 3 2 , 0 0 9 1 , 5 2 2 , 2 4 6 1,971,394 Cu l t u r e a n d r e c r e a t i o n 2 , 1 6 1 , 2 1 3 2 , 0 7 6 , 1 7 6 2 , 1 6 9 , 6 7 1 2 , 1 3 9 , 0 2 7 2 , 0 0 5 , 5 5 8 1 , 8 9 0 , 5 5 5 1 , 8 6 9 , 3 8 2 2 , 0 8 2 , 2 1 8 1 , 8 9 4 , 5 3 7 1,650,681 Ca p i t a l o u t l a y 1 , 1 7 3 , 4 2 3 1 , 3 9 8 , 4 0 5 1 , 6 5 1 , 2 8 6 1 , 0 1 5 , 1 8 4 1 , 2 5 2 , 2 1 0 1 , 4 3 6 , 5 2 3 7 , 1 8 9 , 9 6 1 9 9 7 , 4 5 6 5 5 6 , 7 8 3 69,492 De b t s e r v i c e s : P r i n c i p a l 4 6 5 , 3 5 1 4 4 8 , 2 9 7 4 3 1 , 7 6 3 4 1 5 , 1 3 0 3 9 9 , 0 0 8 1 , 1 4 0 , 4 6 1 7 0 9 , 8 2 2 2 5 4 , 1 3 2 1 6 8 , 2 0 2 104,511 I n t e r e s t 4 3 6 , 7 3 6 4 5 5 , 8 1 0 4 7 3 , 8 3 1 4 9 5 , 9 9 7 5 0 7 , 2 4 4 4 0 6 , 4 1 3 4 0 3 , 4 4 5 274,707 159,124 151,615 To t a l e x p e n d i t u r e s 1 3 , 5 6 8 , 6 2 3 1 3 , 2 6 2 , 1 7 0 1 3 , 8 1 4 , 6 6 5 1 2 , 8 3 0 , 2 1 9 1 3 , 1 6 9 , 7 7 3 1 4 , 0 3 5 , 0 5 3 1 8 , 6 9 3 , 3 7 6 1 1 , 0 6 2 , 1 3 6 10,097,099 9,769,116 (D e f i c i e n c y ) e x c e s s s o f r e v e n u e s o v e r ex p e n d i t u r e s 6 8 3 , 6 2 3 8 1 0 , 7 9 3 6 7 7 , 6 4 0 1 , 9 8 1 , 0 3 2 1 , 3 0 3 , 3 7 8 7 1 4 , 5 8 7 ( 4 , 5 7 5 , 0 7 8 ) ( 1 , 0 3 1 , 9 6 9 ) ( 1 , 1 3 6 , 7 8 7 ) (601,886) Ot h e r f i n a n c i n g s o u r c e s ( u s e s ) : Pr o c e e d s f r o m l o n g - t e r m d e b t - - - - - 2 , 5 0 0 , 0 0 0 - 4 , 9 9 0 , 4 1 3 1 , 6 8 0 , 0 0 0 - Pa y m e n t t o r e f u n d i n g a g e n t - - - - - - - - ( 3 3 0 , 0 0 0 ) - Tr a n s f e r i n 3 , 3 3 1 , 1 8 0 3 , 2 8 3 , 3 6 9 6 , 0 6 6 , 8 4 3 3 , 3 0 8 , 9 1 8 3 , 7 4 5 , 0 5 3 4 , 1 2 8 , 4 2 3 2 , 2 7 5 , 2 9 8 2 , 1 0 9 , 2 1 3 2 , 0 2 2 , 8 4 0 2,482,309 Tr a n s f e r o u t ( 3 , 0 9 6 , 1 8 0 ) ( 3 , 0 4 8 , 3 6 9 ) ( 5 , 8 5 1 , 8 4 3 ) ( 3 , 1 7 3 , 9 1 8 ) ( 3 , 9 4 6 , 5 4 6 ) ( 4 , 8 0 5 , 0 5 4 ) ( 2 , 0 6 5 , 2 9 8 ) ( 1 , 9 1 3 , 3 7 9 ) (2,040,340) (2,234,059) To 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 ) 2 3 5 , 0 0 0 2 3 5 , 0 0 0 2 1 5 , 0 0 0 1 3 5 , 0 0 0 ( 2 0 1 , 4 9 3 ) 1 , 8 2 3 , 3 6 9 2 1 0 , 0 0 0 5 , 1 8 6 , 2 4 7 1,332,500 248,250 Ne t c h a n g e i n f u n d b a l a n c e s 9 1 8 , 6 2 3 $ 1 , 0 4 5 , 7 9 3 $ 8 9 2 , 6 4 0 $ 2 , 1 1 6 , 0 3 2 $ 1 , 1 0 1 , 8 8 5 $ 2 , 5 3 7 , 9 5 6 $ ( 4 , 3 6 5 , 0 7 8 ) $ 4 , 1 5 4 , 2 7 8 $ 195,713$ (353,636)$ De b t s e r v i c e a s a p e r c e n t a g e o f no n c a p i t a l e x p e n d i t u r e s 7 . 8 % 8 . 2 % 8 . 0 % 8 . 4 % 8 . 2 % 1 4 . 0 % 1 0 . 7 % 5 . 5 % 3 . 6 % 2 . 7 % Fi s c a l Y e a r MI A M I S H O R E S V I L L A G E , F L O R I D A CH A N G E S I N F U N D B A L A N C E S F O R G O V E R N M E N T A L F U N D S FO R T H E L A S T T E N F I S C A L Y E A R S 69 Ad - V a l o r e m T a x e s P u b l i c L i c e n s e s C h a r g e s F i n e s a n d I n t e r e s t Fi s c a l Y e a r G e n e r a l P u r p o s e S e r v i c e T a x e s a n d P e r m i t s I n t e r g o v e r n m e n t a l f o r S e r v i c e s F o r f e i t u r e s M i s c e l l a n e o u s I n c o m e T o t a l 20 0 2 3 , 4 0 4 , 1 1 0 2 , 0 4 9 , 4 2 2 3 9 6 , 7 6 6 1 , 0 9 7 , 2 3 1 6 7 2 , 9 4 6 2 6 4 , 2 4 8 2 1 1 , 9 7 4 9 3 , 2 1 4 8 , 1 8 9 , 9 1 1 20 0 3 3 , 5 1 2 , 0 6 8 1 , 7 4 3 , 1 7 8 4 3 3 , 1 5 6 1 , 1 2 0 , 1 5 2 6 2 9 , 1 8 1 2 4 9 , 5 6 0 2 6 1 , 6 4 2 2 8 , 7 8 4 7 , 9 7 7 , 7 2 1 20 0 4 4 , 0 4 2 , 6 5 6 1 , 7 5 2 , 5 2 0 6 4 5 , 2 3 8 1 , 1 6 4 , 6 3 1 6 5 3 , 9 4 3 2 5 3 , 1 2 1 2 2 4 , 5 2 8 2 , 2 4 9 8 , 7 3 8 , 8 8 6 20 0 5 4 , 7 2 3 , 9 6 3 1 , 8 3 1 , 9 5 8 7 9 0 , 2 5 7 9 9 4 , 9 5 0 8 6 5 , 0 9 3 2 6 4 , 7 4 2 1 9 0 , 9 7 8 3 6 , 3 8 1 9 , 6 9 8 , 3 2 2 20 0 6 5 , 6 2 6 , 0 2 2 2 , 2 1 5 , 4 6 1 7 7 6 , 1 9 9 1 , 0 5 9 , 0 6 7 9 6 7 , 2 3 5 2 3 7 , 9 0 8 2 4 6 , 2 0 5 1 0 4 , 4 4 4 1 1 , 2 3 2 , 5 4 1 20 0 7 6 , 6 7 6 , 1 7 8 2 , 2 0 9 , 1 2 5 6 6 6 , 6 2 8 9 5 4 , 6 0 0 1 , 0 7 7 , 2 5 9 2 9 7 , 0 7 5 5 2 , 1 5 0 1 9 9 , 0 9 2 1 2 , 1 3 2 , 1 0 7 20 0 8 6 , 6 0 5 , 8 7 8 2 , 2 2 2 , 8 0 6 6 8 2 , 9 5 1 8 9 5 , 1 8 8 1 , 1 0 1 , 3 0 0 2 6 7 , 4 3 5 1 6 3 , 3 2 5 1 3 4 , 9 0 3 1 2 , 0 7 3 , 7 8 6 20 0 9 6 , 6 9 9 , 1 8 8 2 , 2 6 3 , 7 9 9 6 7 1 , 6 7 4 7 8 9 , 9 2 1 1 , 3 1 0 , 2 5 7 4 9 5 , 5 0 3 1 6 1 , 2 2 7 3 0 , 4 8 8 1 2 , 4 2 2 , 0 5 7 20 1 0 6 , 0 5 0 , 3 6 0 2 , 2 2 2 , 7 4 3 6 5 8 , 8 3 3 7 9 7 , 7 7 3 1 , 4 6 0 , 4 5 1 3 4 6 , 4 6 3 7 0 5 , 3 5 8 1 9 , 6 3 3 1 2 , 2 6 1 , 6 1 4 20 1 1 5 , 6 1 4 , 7 4 6 2 , 1 3 7 , 4 7 3 1 , 0 5 2 , 6 2 6 9 1 2 , 4 2 1 1 , 5 4 2 , 4 3 2 3 2 9 , 9 0 6 6 3 3 , 3 1 8 1 2 , 8 5 9 1 2 , 2 3 5 , 7 8 1 Ge n e r a l G o v e r n m e n t a l a n d E x c i s e T a x R e v e n u e s B y S o u r c e La s t T e n F i s c a l Y e a r s (a c c r u a l b a s i s o f a c c o u n t i n g ) MI A M I S H O R E S V I L L A G E , F L O R I D A 70 Fi s c a l Ye a r T o t a l T o t a l T o t a l En d e d R e s i d e n t i a l P e r s o n a l C e n t r a l l y A s s e s s e d D i r e c t T a x M a r k e t Se p t e m b e r 3 0 , Pr o p e r t y Pr o p e r t y As s e s s e d Va l u e Ra t e Va l u e 20 0 2 4 1 5 , 3 9 3 , 6 2 0 1 7 , 3 9 9 , 7 9 2 9 0 3 , 0 8 1 4 3 3 , 6 9 6 , 4 9 3 8 . 2 6 5 N / A 20 0 3 4 6 2 , 9 5 4 , 4 5 0 1 8 , 8 5 4 , 9 8 3 9 4 6 , 2 4 0 4 8 2 , 7 5 5 , 6 7 3 8 . 2 6 5 7 9 4 , 2 2 6 , 7 2 4 20 0 4 5 1 6 , 4 2 5 , 6 4 2 2 0 , 3 8 9 , 3 8 3 9 4 4 , 0 0 9 5 3 7 , 7 5 9 , 0 3 4 9 . 3 7 5 9 5 0 , 4 6 1 , 2 3 2 20 0 5 5 7 2 , 4 9 1 , 4 5 0 2 3 , 1 5 1 , 5 4 5 1 , 0 7 8 , 3 9 0 5 9 6 , 7 2 1 , 3 8 5 9 . 1 8 0 1 , 1 3 2 , 6 6 6 , 3 8 1 20 0 6 6 8 6 , 9 1 2 , 2 0 1 2 3 , 4 0 6 , 0 8 5 1 , 2 3 3 , 7 5 6 7 1 1 , 5 5 2 , 0 4 2 9 . 1 0 6 1 , 4 4 3 , 2 9 3 , 4 7 6 20 0 7 8 1 0 , 6 5 6 , 5 8 8 2 2 , 8 7 6 , 7 0 3 1 , 3 1 9 , 8 8 8 8 3 4 , 8 5 3 , 1 7 9 7 . 8 1 6 1 , 8 5 3 , 9 1 5 , 5 9 2 20 0 8 9 3 9 , 1 2 7 , 2 2 7 2 2 , 8 1 4 , 4 4 1 1 , 3 1 7 , 5 0 6 9 6 3 , 2 5 9 , 1 7 4 8 . 2 9 3 2 , 2 1 4 , 1 9 9 , 5 3 4 20 0 9 9 0 2 , 1 9 3 , 0 2 5 1 8 , 8 7 3 , 7 0 0 1 , 6 1 2 , 4 8 7 9 2 2 , 6 7 9 , 2 1 2 8 . 7 0 6 2 , 0 4 7 , 1 7 5 , 0 3 1 20 1 0 7 7 8 , 8 1 3 , 7 3 4 1 7 , 2 0 1 , 6 3 6 2 , 1 3 3 , 4 3 8 7 9 8 , 1 4 8 , 8 0 8 8 . 7 8 6 1 , 5 2 4 , 5 5 4 , 7 2 7 20 1 1 7 0 3 , 8 9 9 , 3 4 5 1 5 , 7 7 5 , 6 2 1 1 , 4 9 8 , 8 5 7 7 2 1 , 1 7 3 , 8 2 3 8 . 7 8 6 1 , 2 8 3 , 9 5 3 , 7 6 9 So u r c e : M i a m i - D a d e C o u n t y P r o p e r t y A p p r a i s a l O f f i c e . No t e : P r o p e r t y i n t h e V i l l a g e i s r e a s s e s s e d e a c h y e a r . S t a t e l a w r e q u i r e s t h e P r o p e r t y A p p r a i s e r t o a p p r a i s e p r o p e r t y a t 1 0 0 % o f m a r k e t v a l u e . T h e F l o r i d a C o n s t i t u t i o n w a s a m e n d e d , e f f e c t i v e J a n u a r y 1 , 1 9 9 5 , t o l i m i t a n n u a l i n c r e a s e s i n a s s e s s e d v a l u e o f p r o p e rt y w i t h h o m e s t e a d e x e m p t i o n t o 3 p e r c e n t p e r y e a r o r t h e a m o u n t o f t h e C o n s u m e r P r i c e i n d e x , w h i c h e v e r i s l e s s . T h e i n c r e a s e i s n o t a ut o m a t i c s i n c e n o a s s e s s e d v a l u e s h a l l e x c e e d m a r k e t v a l u e . T a x r a t e s a r e p e r $ 1 , 0 0 0 o f a s s e s s e d v a l u e . 56.17%52.68%Assessed Value as a percentage 49.30%45.03%52.35% MI A M I S H O R E S V I L L A G E , F L O R I D A AS S E S S E D V A L U E A N D A C T U A L V A L U E O F T A X A B L E P R O P E R T Y FO R T H E L A S T T E N F I S C A L Y E A R S 43.50%45.07%of Market Value N/A 60.78%56.58% 71 Fi s c a l Total Ye a r T o t a l Direct & En d e d C i t y D e b t D i r e c t C o u n t y - D e b t O v e r l a p p i n g Se p t e m b e r 3 0 , Wi d e Se r v i c e Ra t e Wi d e Se r v i c e Fi r e Li b r a r y Sc h o o l StateRates 20 0 2 8 . 0 0 0 0 0 . 5 1 5 0 8 . 5 1 5 0 5 . 8 8 9 0 0 . 3 9 0 0 2 . 6 6 1 0 - 9 . 2 5 2 0 0 . 7 3 5 5 2 7 . 4 4 2 5 20 0 3 7 . 7 5 0 0 0 . 5 1 5 0 8 . 2 6 5 0 6 . 4 6 9 0 0 . 2 8 5 0 2 . 6 6 1 0 - 9 . 1 0 0 0 0 . 7 3 5 5 2 7 . 5 1 5 5 20 0 4 7 . 7 5 0 0 0 . 5 1 5 0 8 . 2 6 5 0 6 . 3 7 9 2 0 . 2 8 5 0 2 . 6 6 1 0 - 8 . 6 8 7 0 0 . 7 3 5 5 2 7 . 0 1 2 7 20 0 5 8 . 2 5 0 0 1 . 1 2 5 1 9 . 3 7 5 1 6 . 2 6 3 8 0 . 2 8 5 0 2 . 6 6 1 0 - 8 . 4 3 8 0 0 . 7 3 5 5 2 7 . 7 5 8 4 20 0 6 8 . 2 5 0 0 0 . 9 3 0 0 9 . 1 8 0 0 6 . 0 3 7 3 0 . 2 8 5 0 2 . 6 5 1 0 - 8 . 1 0 5 0 0 . 7 3 5 5 2 6 . 9 9 3 8 20 0 7 8 . 2 5 0 0 0 . 8 5 5 9 9 . 1 0 5 9 5 . 0 0 1 9 0 . 2 8 5 0 2 . 2 4 7 7 - 7 . 9 4 8 0 0 . 6 5 8 5 2 5 . 2 4 7 0 20 0 8 7 . 1 4 0 0 0 . 6 7 6 4 7 . 8 1 6 4 5 . 2 9 4 5 0 . 2 8 5 0 2 . 2 4 8 7 - 7 . 7 9 7 0 0 . 6 5 8 5 2 4 . 1 0 0 1 20 0 9 7 . 6 3 5 1 0 . 6 5 7 8 8 . 2 9 2 9 5 . 3 3 7 0 0 . 2 8 5 0 2 . 2 2 7 1 7 . 9 9 5 0 0 . 6 5 8 5 2 4 . 7 9 5 5 20 1 0 8 . 0 0 0 0 0 . 7 0 5 9 8 . 7 0 5 9 5 . 9 2 7 5 0 . 2 8 5 0 2 . 5 9 5 3 8 . 2 4 9 0 0 . 6 5 8 5 2 6 . 4 2 1 2 20 1 1 8 . 0 0 0 0 0 . 7 8 5 5 8 . 7 8 5 5 4 . 8 0 5 0 0 . 2 8 5 0 2 . 4 6 2 7 8 . 0 0 5 0 0 . 9 7 0 8 2 5 . 3 1 4 0 (1 ) O v e r l a p p i n g r a t e s a r e t h o s e o f l o c a l a n d c o u n t y g o v e r n m e n t s t h a t a p p l y t o p r o p e r t y o w n e r s w i t h i n t h e V i l l a g e o f M i a m i S h o r e s. Ad d i t i o n a l i n f o r m a t i o n : Pr o p e r t y t a x r a t e s a r e a s s e s s e d p e r $ 1 , 0 0 0 o f T a x a b l e A s s e s s e d V a l u a t i o n Ta x r a t e l i m i t s : C i t y 1 0 . 0 0 0 M i l s C o u n t y 1 0 . 0 0 0 M i l s S c h o o l 1 0 . 0 0 0 M i l s S t a t e 1 0 . 0 0 0 M i l s So u r c e : M i a m i D a d e C o u n t y F i n a n c e D e p a r t m e n t , T a x C o l l e c t o r ' s D i v i s i o n Mi a m i S h o r e s V i l l a g e C o u n t y S p e c i a l D i s t r i c t s MI A M I S H O R E S V I L L A G E , F L O R I D A PR O P E R T Y T A X R A T E S DI R E C T A N D O V E R L A P P I N G G O V E R N M E N T S ( 1 ) FO R T H E L A S T T E N F I S C A L Y E A R S 72 PercentagePercentage Taxableof Total CityTaxableof Total City AssessedTaxableAssessedTaxable Taxpayer Value Rank Value Value Rank Value Northern Trust Bank8,189,776$ 11.14%-$ 0.00% Shore Square Investments, LLC6,615,264 20.92%- 0.00% Tropical Chevrolet, Inc.6,283,319 30.87%3,328,497 20.77% Florida Power & Light Co.5,597,818 40.78%- 0.00% Frances B Everett3,083,919 50.43%- 0.00% DVS LLC2,821,031 60.39%- 0.00% Wal Miami LLC2,456,175 70.34%- 0.00% Comcast of South Florida II Inc.2,328,192 80.32%- 0.00% Omar Cassola2,263,365 90.31%- 0.00% Norton L Barchan 2,013,724 100.28%- 0.00% Publix Supermarket- 0.00%5,325,672 11.23% Boris Moroz/Phil Glassman Trust- 0.00%2,907,881 30.67% Bujolo, Inc.- 0.00%1,857,565 40.43% Shiela McDonald- 0.00%1,582,421 50.36% George Bennet- 1,467,858 60.34% Ben and Ruth Pumo- 1,280,516 70.30% Bank of America, N.A.- 1,267,122 80.29% MS Center, LLC- 1,211,747 90.28% Tsao Investments, Inc - 0.00%1,250,000 100.29% Total41,652,583$ 5.78%21,479,279$ 4.66% Source: Miami-Dade County Property Appraiser Office 20112002 MIAMI SHORES VILLAGE, FLORIDA PRINCIPAL PROPERTY TAX PAYERS CURRENT YEAR AND TEN YEARS AGO 73 Fi s c a l Ye a r T o t a l L e v i e d C o l l e c t i o n s En d e d f o r t h e P e r c e n t a g e i n S u b s e q u e n t P e r c e n t a g e Se p t e m b e r 3 0 , Fi s c a l Y e a r Am o u n t of L e v y Ye a r s Am o u n t of L e v y 20 0 2 3 , 5 0 7 , 0 4 0 3 , 2 9 8 , 4 9 2 9 4 . 1 % 1 0 5 , 6 1 8 3 , 4 0 4 , 1 1 0 9 7 . 1 % 20 0 3 3 , 7 5 0 , 9 8 2 3 , 3 9 0 , 0 9 0 9 0 . 4 % 1 2 1 , 9 7 8 3 , 5 1 2 , 0 6 8 9 3 . 6 % 20 0 4 4 , 1 8 3 , 4 9 8 3 , 8 7 1 , 3 2 2 9 2 . 5 % 1 7 1 , 3 3 4 4 , 0 4 2 , 6 5 6 9 6 . 6 % 20 0 5 4 , 9 2 2 , 9 5 1 4 , 5 2 5 , 6 8 3 9 1 . 9 % 1 9 8 , 2 8 0 4 , 7 2 3 , 9 6 3 9 6 . 0 % 20 0 6 5 , 8 7 0 , 3 0 4 5 , 4 4 1 , 6 0 7 9 2 . 7 % 1 8 4 , 4 1 5 5 , 6 2 6 , 0 2 2 9 5 . 8 % 20 0 7 6 , 8 8 7 , 5 3 9 6 , 5 7 1 , 6 4 2 9 5 . 4 % 1 0 4 , 5 3 6 6 , 6 7 6 , 1 7 8 9 6 . 9 % 20 0 8 6 , 8 7 7 , 6 7 1 6 , 3 9 6 , 4 4 0 9 3 . 0 % 2 0 9 , 4 3 8 6 , 6 0 5 , 8 7 8 9 6 . 0 % 20 0 9 7 , 0 4 4 , 7 4 8 6 , 4 7 4 , 5 1 4 9 1 . 9 % 2 2 4 , 6 7 4 6 , 6 9 9 , 1 8 8 9 5 . 1 % 20 1 0 6 , 3 8 5 , 1 9 0 5 , 9 0 3 , 2 1 2 9 2 . 5 % 1 4 7 , 1 2 8 6 , 0 5 0 , 3 4 0 9 4 . 8 % 20 1 1 5 , 7 6 9 , 3 9 1 5 , 4 7 4 , 1 6 7 9 4 . 9 % 1 4 0 , 5 7 9 5 , 6 1 4 , 7 4 6 9 7 . 3 % So u r c e : M i a m i S h o r e s V i l l a g e F i n a n c e D e p a r t m e n t a n d M i a m i - D a d e C o u n t y P r o p e r t y A p p r a i s e r s O f f i c e . Co l l e c t e d w i t h i n t h e Fi s c a l Y e a r o f t h e L e v y T o t a l c o l l e c t i o n s t o D a t e MI A M I S H O R E S V I L L A G E , F L O R I D A OP E R A T I N G P R O P E R T Y T A X L E V I E S A N D C O L L E C T I O N S FO R T H E L A S T T E N F I S C A L Y E A R S 74 Percentage Fiscal of Actual YearGeneralTaxable EndedObligation LoanValue of Per September 30,Bonds Payable Total Property Capita 20023,030,000 438,202 3,468,202 0.80%334 20032,970,000 1,680,000 4,650,000 0.96%448 20047,910,000 1,485,868 9,395,868 1.75%905 20057,750,000 1,405,069 9,155,069 1.53%882 20067,585,000 3,444,879 11,029,879 1.55%1,054 20077,415,000 3,215,811 10,630,811 1.27%1,024 20087,235,000 3,438,552 10,673,552 1.11%1,028 20097,050,000 3,095,362 10,145,362 1.10%977 20106,860,000 2,737,674 9,597,674 1.20%901 20116,665,000 2,364,878 9,029,878 1.25%808 Note: Details regarding the Village's outstanding debt can be found in the notes to the financial statements. Governmental Activities MIAMI SHORES VILLAGE, FLORIDA RATIOS OF OUTSTANDING DEBT BY TYPE FOR THE LAST TEN FISCAL YEARS 75 Pe r c e n t a g e A m o u n t De b t A p p l i c a b l e A p p l i c a b l e Go v e r n m e n t a l U n i t Ou t s t a n d i n g To V i l l a g e To V i l l a g e 70 1 , 8 0 9 , 3 7 0 Ov e r l a p p i n g d e b t : M i a m i - D a d e C o u n t y , F l o r i d a ( 1 ) 3 4 8 , 1 0 0 $ 0 . 3 3 % 1 , 1 3 5 $ M i a m i - D a d e C o u n t y P u b l i c S c h o o l s ( 2 ) 8 3 9 , 0 9 6 0 . 3 5 % 2 , 9 6 3 T o t a l o v e r l a p p i n g d e b t 1 , 1 8 7 , 1 9 6 $ 4 , 0 9 8 Mi a m i S h o r e s V i l l a g e 9 , 0 2 4 1 0 0 . 0 0 % 9 , 0 3 0 T o t a l d i r e c t a n d o v e r l a p p i n g d e b t 1 , 1 9 6 , 2 2 0 $ 1 3 , 1 2 8 $ So u r c e s : (1 ) M i a m i -Da d e C o u n t y , F i n a n c e D e p a r t m e n t - Bo n d A d m i n i s t r a t i o n D i v i s i o n MI A M I S H O R E S V I L L A G E , F L O R I D A DI R E C T A N D O V E R L A P P I N G G O V E R N M E N T A L A C T I V I T I E S D E B T AS O F S E P T E M B E R 3 0 , 2 0 1 1 (i n t h o u s a n d s ) (1 ) Mi a m i D a d e Co u n t y , Fi n a n c e De p a r t m e n t Bo n d Ad m i n i s t r a t i o n Di v i s i o n (2 ) T h e S c h o o l B o a r d o f M i a m i - D a d e C o u n t y - O f f i c e o f t h e C o n t r o l l e r (3 ) T h e p e r c e n t a g e o f o v e r l a p p i n g d e b t a p p l i c a b l e i s e s t i m a t e d u s i n g t h e t a x a b l e a s s e s s e d p r o p e r t y v a l u e s o f t h e V i l l a g e a s c o m p a r e d t o t h e t a x a b l e a s s e s s e d p r o p e r t y v a l u e o f t h e C o u n t y a n d t h e S c h o o l B o a r d . 76 Le g a l d e b t m a r g i n c a l c u l a t i o n f o r f i s c a l y e a r 2 0 1 1 : As s e s s e d v a l u e 7 2 1 , 1 7 3 , 8 2 3 $ De b t l i m i t ( 1 0 % o f a s s e s s e d v a l u e ) 7 2 , 1 1 7 , 3 8 2 De b t a p p l i c a b l e t o l i m i t : To t a l b o n d e d d e b t 9 , 0 2 9 , 8 7 8 Le s s : Re v e n u e b o n d s In s t a l l m e n t l o a n s (2 , 3 6 4 , 8 7 8 ) To t a l d e b t a p p l i c a b l e t o l i m i t a t i o n 6 , 6 6 5 , 0 0 0 Le g a l d e b t m a r g i n 6 5 , 4 5 2 , 3 8 2 $ 20 1 1 20 1 0 20 0 9 20 0 8 20 0 7 20 0 6 20 0 5 20 0 4 20032002 De b t l i m i t 6 5 , 4 5 2 , 3 8 2 $ 7 2 , 9 5 4 , 8 8 1 $ 7 2 , 1 1 7 , 3 8 2 $ 9 2 , 2 6 7 , 9 2 1 $ 8 2 , 7 1 3 , 1 5 8 $ 7 1 , 1 5 5 , 2 0 4 $ 5 9 , 6 7 2 , 1 3 9 $ 5 3 , 7 7 5 , 9 0 3 $ 4 8 , 2 7 5 , 5 6 7 $ 43,369,649$ To t a l n e t d e b t a p p l i c a b l e t o l i m i t 6, 6 6 5 , 0 0 0 6, 8 6 0 , 0 0 0 7, 2 3 5 , 0 0 0 7, 4 1 5 , 0 0 0 7, 4 1 5 , 0 0 0 7, 5 8 5 , 0 0 0 7, 7 5 0 , 0 0 0 7, 9 1 0 , 0 0 0 2,970,000 3,030,000 Le g a l d e b t m a r g i n 5 8 , 7 8 7 , 3 8 2 $ 6 6 , 0 9 4 , 8 8 1 $ 64 , 8 8 2 , 3 8 2 $ 84 , 8 5 2 , 9 2 1 $ 75 , 2 9 8 , 1 5 8 $ 63 , 5 7 0 , 2 0 4 $ 51 , 9 2 2 , 1 3 9 $ 45 , 8 6 5 , 9 0 3 $ 45,305,567$ 40,339,649$ To t a l n e t d e b t a p p l i c a b l e t o t h e li m i t a s a p e r c e n t a g e o f d e b t l i m i t 1 0 . 1 8 % 9 . 4 0 % 1 0 . 0 3 % 8 . 0 4 % 8 . 9 6 % 1 0 . 6 6 % 1 2 . 9 9 % 1 4 . 7 1 % 6 . 1 5 % 6 . 9 9 % Fi s c a l Y e a r MI A M I S H O R E S V I L L A G E , F L O R I D A LE G A L D E B T M A R G I N I N F O R M A T I O N FO R T H E L A S T T E N F I S C A L Y E A R S 77 PersonalPer IncomeCapita Estimated(Thousand ofPersonalUnemployment Year Population (1)Dollars) Income (2)Rate (3) 200210,380281,786 27,147 6.6% 200310,385289,648 27,891 5.9% 200410,385309,650 29,817 5.4% 200510,380330,779 31,867 4.3% 200610,462363,126 34,709 3.8% 200710,380371,511 35,791 3.6% 200810,380386,800 37,264 5.3% 200910,380393,495 37,909 8.9% 201010,654244,648 22,963 12.1% 201111,170291,917 26,134 11.8% Sources: (1) State of Florida Department of Revenue (2) FBeacon Council of Miami Dade County (3) U.S. Department of Labor Statistics MIAMI SHORES VILLAGE, FLORIDA DEMOGRAPHIC AND ECONOMIC STATISTICS FOR THE LAST TEN CALENDAR YEARS 78 Pe r c e n t a g e P e r c e n t a g e of T o t a l C o u n t y o f T o t a l C o u n t y Em p l o y e r Em p l o y e e s Ra n k Em p l o y m e n t Em p l o y e e s Ra n k Em p l o y m e n t Mi a m i - D a d e C o u n t y P u b l i c S c h o o l s 4 8 , 5 7 1 1 3 . 8 1 % 3 7 , 5 0 0 1 3 . 4 1 % Mi a m i - D a d e C o u n t y , F l o r i d a 2 9 , 0 0 0 2 2 . 2 8 % 3 0 , 0 0 0 2 2 . 7 3 % Fe d e r a l G o v e r n m e n t 1 9 , 5 0 0 3 1 . 5 3 % 2 1 , 1 0 0 3 1 . 6 6 % Fl o r i d a S t a t e G o v e r n m e n t 1 7 , 1 0 0 4 1 . 3 4 % 1 8 , 1 0 0 4 1 . 6 5 % Un i v e r s i t y o f M i a m i 1 6 , 0 0 0 5 1 . 2 6 % 8 , 0 0 0 7 0 . 7 3 % Ba p t i s t H e a l t h S y s t e m s o f S o u t h F L 1 3 , 3 7 6 6 1 . 0 5 % 7 , 5 0 0 8 0 . 6 8 % Ja c k s o n H e a l t h S y s t e m 1 2 , 5 7 1 7 0 . 9 9 % 1 0 , 0 0 0 5 0 . 9 1 % Pu b l i x S u p e r M a r k e t s 1 0 , 8 0 0 8 0 . 8 5 % Am e r i c a n A i r l i n e s 9 , 0 0 0 9 0 . 7 1 % 9 , 0 0 0 6 0 . 8 2 % Fl o r i d a I n t e r n a t i o n a l U n i v e r s i t y 8 , 0 0 0 1 0 0 . 6 3 % Pr e c i s i o n R e s p o n s e C o r p o r a t i o n 4 , 3 4 6 9 0 . 3 9 % Be l l S o u t h , I n c . 4, 2 4 0 1 0 0 . 3 8 % 18 3 , 9 1 8 1 4 . 4 5 % 1 4 9 , 7 8 6 1 3 . 3 6 % So u r c e : T h e B e a c o n C o u n c i l , M i a m i F l o r i d a , M i a m i B u s i n e s s P r o f i l e 20 1 1 2 0 0 2 MI A M I S H O R E S V I L L A G E , F L O R I D A PR I N C I P A L E M P L O Y E R S L O C A T E D I N M I A M I - D A D E C O U N T Y CU R R E N T Y E A R A N D T E N Y E A R S A G O 79 Function/Program 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 General government: Administration: Full time9 9 9 9 10 11 10 - 10 11 Part time5 - - - - - - - - - Finance: Full time5 5 4 4 4 5 5 5 5 5 Part time- 1 1 1 1 1 1 1 1 1 Public works: Full time40 47 45 44 60 66 55 54 53 55 Part time- 1 2 1 2 2 2 2 2 2 Culture and recreation: Recreation: Full time13 13 11 12 12 12 12 12 12 12 Part time30 51 56 48 64 64 64 64 64 64 Library: Full time3 3 3 3 3 4 4 4 4 4 Part time6 7 7 7 7 6 7 7 7 6 Public safety Police Full time44 45 45 43 47 47 44 44 44 35 Part time3 3 3 3 5 5 5 4 4 5 Total158 185 186 175 215 223 209 197 206 200 Source: Village Finance office Fiscal Year MIAMI SHORES VILLAGE, FLORIDA VILLAGE EMPLOYEES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS 80 COMPLIANCE SECTION 81 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, 2011 which collectively comprise the Village’s basic financial statements, and have issued our report thereon dated March 20, 2012. 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 82 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 Statutes, 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 Alberni Caballero & Company, LLP Coral Gables, Florida March 20, 2012 83 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, 2011, and have issued our report thereon dated March 20, 2012. 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 20, 2012, 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. There were no recommendations made in the preceding annual financial report.  Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of the provisions of Section 218.415., Florida Statutes, regarding the investment of public funds. In connection with our audit, we determined that the 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 84 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, 2011, 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, 2011. 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 Statutes, 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 Alberni Caballero & Company, LLP Coral Gables, Florida March 20, 2012 85 MIAMI SHORES VILLAGE, FLORIDA SCHEDULE OF FINDINGS AND RESPONSES FISCAL YEAR ENDED SEPTEMBER 30, 2011 PRIOR YEAR FINANCIAL STATEMENT FINDINGS NONE CURRENT YEAR FINANCIAL STATEMENT FINDINGS NONE