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2012MIAMI SHORES VILLAGE A FLORIDA MUNICIPALITY COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year ended September 30, 2012 MIAMI SHORES VILLAGE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012 PREPARED BY THE FINANCE DEPARTMENT MIAMI SHORES VILLAGE, FLORIDA TABLE OF CONTENTS Page I. INTRODUCTORY SECTION (Unaudited) Letter of Transmittal i-iv GFOA Certificate of Achievement v List of Elected Officials vi List of Appointed Officials vii Organizational Chart viii 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 24-47 Required Supplementary Information: Budgetary Comparison Schedule: General Fund 48-49 Special Revenue Funds 50 Notes to Budgetary Comparison Schedule 51 Schedule of Funding Progress 52 Schedule of Employer Contributions 53 Combining and Individual Financial Statementsand Schedules: Combining Balance Sheet – Nonmajor Governmental Funds 54-55 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds 56-57 Schedules of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual Nonmajor Governmental Funds 58-60 Internal Service Funds: Combining Statement of Net Assets 61 Combining Statement of Revenues, Expenses and Changes in Net Assets 62 Combining Statement of Cash Flows 63 MIAMI SHORES VILLAGE, FLORIDA TABLE OF CONTENTS II. FINANCIAL SECTION Fiduciary Funds: Combining Statement of Fiduciary Net Assets – Pension Trust Funds 64 Combining Statement of Changes in Fiduciary Net Assets – Pension Trust Funds 65 Statement of Changes in Assets and Liabilities – Agency Fund 66 III. STATISTICAL SECTION Net Assets by Component 67 Changes in Net Assets 68-69 Fund Balances for Governmental Funds Changes in Fund Balances of Governmental Funds 70 71 General Governmental and Excise Tax Revenues by Source 72 Assessed Value and Actual Value of Taxable Property 73 Property Tax Rates Direct and Overlapping Governments 74 Principal Property Taxpayers 75 Operating Property Tax Levies and Collections 76 Ratios of Outstanding Debt By Type 77 Direct and Overlapping Governmental Activities Debt 78 Legal Debt Margin Information 79 Demographic and Economic Statistics 80 Principal Employers Located in Miami Dade County 81 Village Employees by Function 82 IV. COMPLIANCE SECTION Independent Auditors’ Report on Internal Controls over Financial Reporting 83-84 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 85-86 State of Florida Schedule of Findings and Responses 87 INTRODUCTORY SECTION -i- Miami Shores Village Finance Department 10050 N.E.2nd Avenue Miami Shores, Florida 33138 Tel: (305) 795.2207 Fax: (305) 758.7849 March 25, 2013 The Mayor and Members of the Village Council 10050 Northeast Second Avenue Miami Shores, Florida 33138-2382 Subject: FY 2011-12 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, 2012. 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, 2012 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, 2012 are fairly presented in conformity with generally accepted accounting principles (GAAP). FY 2011-12 Financial Report March 25, 2013 -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 the decrease in property market value of 44%, during the downturn in the economy between 2008 and 2012; and population increasing only 1% from 2003-2012. Wealth levels in the Village are above average, with per capita income at $33,635 or 83% of the state, and median family income at $80,854 or 150% 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, 2012, 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 resulted in a reduction in the property taxes available to the Village. Property values began to stabilize during the 2012 fiscal year with an increase in assessed values of 4.5% for fiscal year 2013. It is anticipated that property values will continue to increase due to the desirability of the area and the close proximity to Greater Downtown Miami. 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 $300 thousand dollars in 2012, increasing the unassigned surplus to $7.9 million. This surplus will enable the Village to continue to provide the same level of services to the residents in the upcoming fiscal years, and to address capital improvement requirements that were suspended during the fiscal downturn. FY 2011-12 Financial Report March 25, 2013 -iii- In August of 2012, Moody’s Investors Service upgraded to Aa3 from A1 the Village’s General Obligation Bond Rating. The Aa3 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. 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 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. 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, 2011 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 -v- 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, 2012 -vii- MIAMI SHORES VILLAGE, FLORIDA LIST OF APPOINTED OFFICIALS SEPTEMBER 30, 2012 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 -viii- MIAMI SHORES VILLAGE, FLORIDA ORGANIZATION CHART SEPTEMBER 30, 2012 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 INDEPENDENT AUDITORS’ REPORT 1 INDEPENDENT AUDITORS' REPORT Honorable Mayor and Members of the Village Council Miami Shores Village, Florida We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Miami Shores Village, Florida (the “Village”) as of and for the fiscal year ended September 30, 2012, 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, 2012, 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 25, 2013 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 25, 2013 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, 2012. Financial Highlights for Fiscal Year 2012  At September 30, 2012, the Miami Shores Village assets exceeded its liabilities by $33.2 million (net assets). Of this amount, $15 million was invested in capital assets, net of related debt. Additionally, $5.8 million was restricted by law, agreements, and debt covenants or for capital projects. The Village had unrestricted net assets of $12.4 million at September 30, 2012 an increase of $100 thousand or 0.8% as compared with the prior year.  During the fiscal year 2012, net assets increased by $2.7 million. Of this increase, $2.4 million was in governmental activities and the remaining increase of $300 thousand was in business-type activities.  At September 30, 2012, the Miami Shores Village’s governmental funds had fund balances totaling $14.8 million. Of the total fund balance, approximately $7.9 million or 53.4% was unassigned and approximately $1million or 6.8% was committed for future capital projects and encumbrances. The restricted fund balance of approximately $5.8 million, or 39.2%, is related to funds restricted by the contributing agency. The nonspendable fund balance of approximately $100 thousand, or 0.6%, is related to prepaid items. The net change in fund balances during the year was an increase of $1.3 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 Stormwater 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 eleven (11) 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 three major funds. Data from the other eight 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 47 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 48 to 53 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 54 to 66 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 2012 2011 2012 2011 2012 2011 2011-2012 Current and other assets $ 17,780 $ 16,256 $ 3,602 $ 3,220 $ 21,382 $ 19,476 9.8% Capital assets 21,526 21,310 1,922 1,924 23,448 23,234 0.9% Total assets 39,306 37,566 5,524 5,144 44,830 42,710 5.0% Long-term liabilities outstanding 9,367 9,764 151 83 9,518 9,848 -3.4% Other liabilities 1,351 1,641 763 752 2,114 2,392 -11.6% Total liabilities 10,718 11,405 914 835 11,632 12,240 -5.0% Invested in capital assets, net of related debt 13,160 12,280 1,922 1,924 15,082 14,204 5.7% Restricted 5,835 3,976 - - 5,835 3,976 45.9% Unrestricted 9,593 9,905 2,688 2,385 12,281 12,290 0.8% Total net assets $ 28,588 $ 26,161 $ 4,610 $ 4,309 $ 33,198 $ 30,470 9.0% Net assets may be used to assess the financial position of the Village. The Village’s combined net assets as of September 30, 2012 were $33.2 million. Approximately 45.2%, or $15 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, $5.8 million are restricted net assets and are subject to external restrictions on how they may be spent. At September 30, 2012, 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. Continued on next page -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 2012 2011 2012 2011 2012 2011 2011-2012 Revenues: Program revenues: Charges for services $ 5,417 $ 3,887 $ 3,018 $ 2,914 $8,435 $6,801 24.0% Operating grants & Contributions 170 217 - - 170 217 -21.7% Capital grants and Contributions 48 66 - - 48 66 -27.3% General Revenues: Property taxes 6,078 6,144 - - 6,078 6,144 -1.1% Other taxes 2,098 2,138 - - 2,098 2,138 -1.9% Intergovernmental revenues, unrestricted 918 936 - - 918 936 -1.9% Interest earnings - unrestricted 61 36 2 2 63 38 65.8% Miscellaneous 493 1,019 - - 493 1,019 -51.6% Total revenues 15,283 14,443 3,020 2,916 18,303 17,359 5.4% Expenses: General government 2,337 2,385 - - 2,337 2,385 -2.0% Public safety 5,509 5,597 - - 5,509 5,597 -1.6% Highways Streets 2,347 1,950 - - 2,347 1,950 20.4% Sanitation / Stormwater - - 2,384 2,448 2,384 2,448 -2.6% Culture & recreation 2,584 2,498 - - 2,584 2,498 3.4% Interest on Long-term Debt 425 444 - - 425 444 -4.3% Total expenses 13,202 12,874 2,384 2,448 15,586 15,322 1.7% Increase in net assets before Transfers 2,081 1,569 636 468 2,717 2,037 33.4% Transfers 335 235 (335) (235) - - - Increase in net assets 2,416 1,804 301 233 2,717 2,037 33.4% Beginning net assets 26,172 24,368 4,309 4,076 30,481 28,444 7.2% Ending net assets $ 28,588 $ 26,172 $ 4,610 $ 4,309 $ 33,198 $ 30,481 8.9% For FY 2012, increases in ending net assets were substantially due to forfeiture proceeds, related to an ongoing investigation, of approximately $1.6 million, an increase in recreation fees due to new programs and reductions in expenses. General government expenses were less than anticipated due to unfilled vacant positions and a reduction in general government operating expenses. Continued on next page -7- Figure A-1 Expenses and Program Revenues – Governmental Activities For the Fiscal Year Ended September 30, 2012 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, 2012 Other taxes 20% Charges for services 35% Property Taxes 41% Investment earnings 0% Other 3%Grant/contribution 1% -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 $300 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, 2012 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 unassigned 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 $14.8 million, a $1.3 million increase over FY 2011. Of this amount, $7.9 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 million, 2) restricted for funds which restrict how the funds may be spent of $5.8 million and 3) nonspendable for funds used to account for amounts which cannot currently be spent, such as prepaid expenses of $100 thousand. 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 $7.9 million as compared with $7.6 million in the prior year. Committed fund balance increased from $63 thousand in the prior year to $78 thousand for the current fiscal year. The increase was due to an increase in encumbrances relating to ongoing projects which had not been completed as of last year-end. The Village's general fund balance increased by $280 thousand during the fiscal year. The main factors associated with this increase were increases in revenues associated with new programs in the recreation department and reductions in anticipated expenditures due to tight spending policies and maintaining vacant positions wherever possible. 0 1000000 2000000 3000000 SanitationStormwater Program Revenue Expenses -9- The Village has three other major funds, excise tax fund, police forfeiture 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 $288 thousand will be transferred to the general fund in future years. The police forfeiture fund accumulates proceeds which are received from forfeitures related to ongoing investigations. The Village has two officers assigned to the federal program. The expenditure of these funds is restricted by strict governmental rules and approval of the Village Council. The police forfeiture fund balance increased by $1.6 million during the fiscal year due to a significant seizure. These funds will be used for future projects for the police department. The general trust fund accumulates funds that are restricted for specific purposes, i.e. recreation, building department, library, and charter school repairs. During fiscal year 2012, the fund balance increased $46 thousand dollars for a total of $1.3 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 $2 million, a $258 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 $655 thousand, a $42 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 committed fund balance for encumbrances. This amendment is usually 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 six 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 $724 thousand below final budgeted amounts. Significant savings were realized in general government, $226 thousand, public safety, $366 thousand, and culture and recreation, $104 thousand. These savings in general government costs and various departmental costs were due to staff vacancies and conservative spending. The fiscal year 2012 final amended budget was $12.5 million, an increase of 1.6 % over the original General Fund budget of $12.3 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 2%. Beyond base revenues of $8.8 million and $2.5 million in operating transfers from Excise Tax, Sanitation Fund and Stormwater Fund, the final Adopted Budget is balanced by an additional $1.2 million from fund balance. However, unanticipated revenues of $1million and reductions in expenditures of $724 thousand resulted in a decrease in use of fund balance. Unanticipated revenues included $230 thousand in additional building permit fees due to an increase in building, $260 thousand in recreation fees due to the addition of programs, and $254 thousand in miscellaneous revenues due to an additional $50 thousand in rent from the country club and the transfer of the charter school rent of $180 thousand to the general fund. Differences between the original budget and the final amended budget increased appropriations by $200 thousand and can be briefly summarized as follows:  $63 thousand in encumbrances carried over  $105 thousand due to increases in expenditures related to new recreation programs -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, 2012 amounts to $23.4 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, 2012 and 2011 (net of depreciation, in thousands) Governmental Activities Business-Type Activities Total Classification 2012 2011 2012 2011 2012 2011 Land $ 2,358,437 $ 2,358,437 $ - $ - $ 2,358,437 $ 2,358,437 Construction in progress - 730,026 - - - 730,026 Building 9,567,542 8,206,246 - - 9,567,542 8,206,246 Land Improvement 1,654,231 1,681,634 - - 1,654,231 1,681,634 Infrastructure 6,725,496 6,977,557 1,473,266 1,533,322 8,198,762 8,510,879 Machinery and equipment 1,220,019 1,355,753 448,349 390.739 1,668,368 1,746,492 Totals $21,525,725 $21,309,653 $1,921,615 $1,924,061 $23,447,340 $23,233,714 Additional information on Miami Shores’ capital assets may be found in Note V on Pages 34 to 35 of this report. Long-term Liabilities. At September 30, 2012, Miami Shores Village had $10.1 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 35 to 36 of this report. Miami Shores Village Outstanding Long-term Liabilities as of September 30, 2012 and 2011 Governmental Activities Business-type activities Total Primary Government 2012 2011 2012 2011 2012 2011 General obligation bonds $ 6,460,000 $ 6,665,000 $ - $ - $ 6,460,000 $ 6,665,000 Other( issuance discount) (71,050) (74,434) - - (71,050) (74,434) Other debt 1,976,591 2,364,878 - - 1,976,591 2,364,878 8,365,541 8,955,444 - - 8,365,541 8,955,444 OPEB liability 354,474 263,711 62,940 47,035 417,414 310,746 Estimated insurance claims payable 464,136 508,411 - - 464,136 508,411 Compensated absences 774,628 647,898 108,201 54,728 882,829 702.626 Total $ 9,958,779 $10,375,464 $171,141 $101,763 10,129,920 10,477,227 -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 $25,000 homestead exemption by another $25,000 for the portion of assessed property value exceeding $50,000, except for school district taxes. 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, which could further limit the extent to which municipalities can levy taxes, continue to be introduced by the state legislature. Actual taxes levied by the Village in 2013 reflected an increase of $243 thousand, precipitated by an increase in property values of $33 million or 4.5% in property values as compared with 2012. Based on the current real estate market within the Village, it is anticipated that assessed values will continue to increase due to the desirability of the area and the close location to Greater Downtown Miami. Property values for fiscal year 2013 showed an increase of $32.6 million, increasing property tax revenues by $243 thousand. Even though property values appear to be increasing, prior year reductions in property values resulted in budgeting $766 thousand of fund balance surplus in 2013 to make up the loss of revenues. During the current fiscal year, unassigned fund balance in the General Fund was $7.9 million compared to unreserved fund balance of $7.6 million in 2011. This $7.9 million is approximately equal to 6.5 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 additional increases in operational expenditures, or be available to fund capital improvements which have been suspended during the downturn in the economy. -12- General Fund Unrestricted and Unassigned Surplus For the Fiscal Years ended September 30, 2003-2012 0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 8000000 2003200420052006200720082009201020112012 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, 2003-2012 0 2 4 6 8 10 2003200420052006200720082009201020112012 Operating Millage Debt Service Millage Fiscal year 2013 budgeted expenditures and transfers are expected to increase $443 thousand compared with fiscal year 2012. This increase in expenditures is required to meet the ongoing needs of the Village and to fund capital improvement projects which were suspended in prior years. Requests for Information This financial report is designed to provide a general overview of Miami Shores Villages’ finances to our citizens, taxpayers, customers, investors, creditors, and others with an interest in the Villages’ finances. Questions concerning this report or requests for additional financial information should be directed to the Finance Director, Holly Hugdahl, CPA, CGMA. MIAMI SHORES VILLAGE Finance Department 10050 Northeast Second Avenue Miami Shores, Florida 33138-2382 BASIC FINANCIAL STATEMENTS Business- GovernmentalType Activities Activities Total ASSETS Cash and cash equivalents15,658,765$ 2,719,025$ 18,377,790$ Investments268,061 - 268,061 Accounts receivable - net 1,110,962 794,755 1,905,717 Prepaid items239,247 - 239,247 Inventories42,136 88,678 130,814 Net pension asset 460,796 - 460,796 Capital assets not being depreciated2,358,437 - 2,358,437 Capital assets being depreciated, net 19,167,288 1,921,615 21,088,903 Total assets39,305,692 5,524,073 44,829,765 LIABILITIES Accounts payable and accrued liabilities522,313 14,709 537,022 Unearned revenues 131,853 728,225 860,078 Accrued interest payable 104,837 - 104,837 Noncurrent liabilities: The amount due in one year 591,648 19,895 611,543 The amount due in more than one year9,367,131 151,247 9,518,378 Total liabilities10,717,782 914,076 11,631,858 NET ASSETS Invested in capital assets, net of related debt13,160,184 1,921,615 15,081,799 Restricted for: Public safety1,789,187 - 1,789,187 Transportation1,553,768 - 1,553,768 Debt service1,191,303 - 1,191,303 Charter school954,479 - 954,479 Recreation346,255 - 346,255 Unrestricted9,592,734 2,688,382 12,281,116 Total net assets28,587,910$ 4,609,997$ 33,197,907$ MIAMI SHORES VILLAGE, FLORIDA STATEMENT OF NET ASSETS SEPTEMBER 30, 2012 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 3 6 , 7 6 3 $ 1, 0 6 9 , 1 3 5 $ 20 , 2 7 4 $ 47 , 4 4 7 $ (1 , 1 9 9 , 9 0 7 ) $ - $ (1,199,907)$ P u b l i c s a f e t y 5, 5 0 9 , 5 0 8 2, 3 2 6 , 3 7 6 14 9 , 9 6 0 - (3 , 0 3 3 , 1 7 2 ) - (3,033,172) P u b l i c w o r k s 2, 3 4 6 , 5 7 5 72 7 , 1 6 0 - - (1 , 6 1 9 , 4 1 5 ) - (1,619,415) C u l t u r e a n d r e c r e a t i o n 2, 5 8 3 , 6 8 8 1, 2 9 3 , 7 8 8 - - (1 , 2 8 9 , 9 0 0 ) - (1,289,900) I n t e r e s t o n l o n g - t e r m d e b t 42 5 , 3 5 5 - - - (4 2 5 , 3 5 5 ) - (425,355) 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 13 , 2 0 1 , 8 9 0 5, 4 1 6 , 4 5 9 17 0 , 2 3 4 47 , 4 4 7 (7 , 5 6 7 , 7 5 0 ) - (7,567,750) 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 0 8 , 5 8 5 2, 7 6 5 , 7 7 5 - - - 557,190 557,190 S t o r m w a t e r 17 5 , 7 6 1 25 2 , 4 2 0 - - - 76,659 76,659 T o t a l b u s i n e s s a c t i v i t i e s 2, 3 8 4 , 3 4 6 3, 0 1 8 , 1 9 5 - - - 633,849 633,849 T o t a l 15 , 5 8 6 , 2 3 6 $ 8, 4 3 4 , 6 5 4 $ 17 0 , 2 3 4 $ 47 , 4 4 7 $ (7 , 5 6 7 , 7 5 0 ) $ 633,849 $ (6,933,901)$ 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, 0 7 8 , 0 8 5 $ - $ 6,078,085$ P u b l i c s e r v i c e t a x e s 2, 0 9 8 , 2 6 7 - 2,098,267 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 ) 91 8 , 0 3 4 - 918,034 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 ) 61 , 0 7 1 1,756 62,827 M i s c e l l a n e o u s 49 3 , 2 4 3 - 493,243 Tr a n s f e r s 33 5 , 0 0 0 (335,000) - T o t a l g e n e r a l r e v e n u e s 9, 9 8 3 , 7 0 0 (333,244) 9,650,456 C h a n g e i n n e t a s s e t s 2, 4 1 5 , 9 5 0 300,605 2,716,555 N e t a s s e t s , b e g i n n i n g 26 , 1 7 1 , 9 6 0 4,309,392 30,481,352 N e t a s s e t s , e n d i n g 28 , 5 8 7 , 9 1 0 $ 4,609,997 $ 33,197,907$ 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 2 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 OtherTotal Ex c i s e Po l i c e 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 Fo r f e i t u r e 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, 6 6 4 , 7 2 6 $ - $ 1, 7 6 5 , 8 7 2 $ 1, 3 8 8 , 9 3 6 $ 3,279,020 $ 14,098,554$ In v e s t m e n t s 26 8 , 0 6 1 - - - - 268,061 Ac c o u n t s r e c e i v a b l e - n e t 46 3 , 6 3 6 33 9 , 6 4 4 7, 2 6 4 - 153,779 964,323 Du e f r o m o t h e r f u n d s 62 , 1 9 7 - - - - 62,197 Pr e p a i d i t e m s 33 , 4 8 0 - - - 59,270 92,750 T o t a l a s s e t s 8, 4 9 2 , 1 0 0 $ 33 9 , 6 4 4 $ 1, 7 7 3 , 1 3 6 $ 1, 3 8 8 , 9 3 6 $ 3,492,069 $ 15,485,885$ 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 41 3 , 5 6 0 $ - $ - $ 10 3 , 3 6 4 $ 3,020 $ 519,944$ Du e t o o t h e r f u n d s - 51 , 6 9 9 - - 10,498 62,197 Un e a r n e d r e v e n u e s 12 0 , 6 2 3 - - - 11,230 131,853 T o t a l l i a b i l i t i e s 53 4 , 1 8 3 51 , 6 9 9 - 10 3 , 3 6 4 24,748 713,994 FU N D B A L A N C E S No n s p e n d a b l e 33 , 4 8 0 - - - 59,270 92,750 Re s t r i c t e d - 28 7 , 9 4 5 1, 7 7 3 , 1 3 6 1, 2 8 5 , 5 7 2 2,488,339 5,834,992 Co m m i t t e d 77 , 5 1 2 - - - 919,712 997,224 Un a s s i g n e d 7, 8 4 6 , 9 2 5 - - - - 7,846,925 T o t a l f u n d b a l a n c e s 7, 9 5 7 , 9 1 7 28 7 , 9 4 5 1, 7 7 3 , 1 3 6 1, 2 8 5 , 5 7 2 3,467,321 14,771,891 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, 4 9 2 , 1 0 0 $ 33 9 , 6 4 4 $ 1, 7 7 3 , 1 3 6 $ 1, 3 8 8 , 9 3 6 $ 3,492,069 $ 15,485,885$ 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 2 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)14,771,891$ 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 35,796,036 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 funds71,050 Net pension asset 460,796 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(8,382,581)$ OPEB liability (354,474) Claims payable (124,136) Accrued interest payable(104,837) Compensated absences(756,426) (9,722,454) Net assets of internal service funds are not reported with governmental funds3,570,551 Net assets of governmental activities (Page 13)28,587,910$ SEPTEMBER 30, 2012 MIAMI SHORES VILLAGE, FLORIDA RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET ASSETS GOVERNMENTAL FUNDS See notes to basic financial statements 16 O t h e r T o t a l Ex c i s e Po l i c e 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 Fo r f e i t u r e 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, 5 2 4 , 3 9 5 $ - $ - $ - $ 55 3 , 6 9 0 $ 6,078,085$ P u b l i c s e r v i c e t a x e s - 2, 0 9 8 , 2 6 7 - - - 2,098,267 O t h e r t a x e s - - - - 69 7 , 4 2 1 697,421 L i c e n s e s a n d p e r m i t s 91 4 , 8 3 3 - - - - 914,833 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 89 2 , 4 7 4 - - - 24 3 , 2 4 1 1,135,715 C h a r g e s f o r s e r v i c e s 1, 7 3 4 , 0 9 5 - - - - 1,734,095 F i n e s a n d f o r f e i t u r e s 32 0 , 9 2 6 - 1, 6 3 1 , 0 2 8 - 3, 8 8 3 1,955,837 M i s c e l l a n e o u s 36 1 , 3 1 8 - 33 , 6 1 2 98 , 3 1 3 - 493,243 I n t e r e s t i n c o m e 42 , 5 5 2 - 2, 5 7 7 2, 9 7 6 11 , 1 8 4 59,289 T o t a l r e v e n u e s 9, 7 9 0 , 5 9 3 2, 0 9 8 , 2 6 7 1, 6 6 7 , 2 1 7 10 1 , 2 8 9 1, 5 0 9 , 4 1 9 15,166,785 Ex p e n d i t u r e s : C u r r e n t : G e n e r a l g o v e r n m e n t 2, 0 9 7 , 9 2 0 - - 26 , 7 4 9 16 6 , 5 2 1 2,291,190 P u b l i c s a f e t y 5, 4 6 9 , 1 8 5 - 64 , 4 8 1 - 2, 4 9 4 5,536,160 P u b l i c W o r k s 1, 3 0 2 , 8 2 2 - - - 38 2 , 0 0 0 1,684,822 C u l t u r e a n d r e c r e a t i o n 2, 2 0 9 , 6 6 0 - - - - 2,209,660 C a p i t a l o u t l a y 35 , 7 6 3 - 50 , 0 5 7 28 , 2 7 2 1, 3 3 5 , 3 9 4 1,449,486 D e b t s e r v i c e : P r i n c i p a l - - - - 48 7 , 6 9 0 487,690 I n t e r e s t - - - - 42 1 , 6 9 9 421,699 T o t a l e x p e n d i t u r e s 11 , 1 1 5 , 3 5 0 - 11 4 , 5 3 8 55 , 0 2 1 2, 7 9 5 , 7 9 8 14,080,707 (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 ) (1 , 3 2 4 , 7 5 7 ) 2, 0 9 8 , 2 6 7 1, 5 5 2 , 6 7 9 46 , 2 6 8 (1 , 2 8 6 , 3 7 9 ) 1,086,078 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 6 , 0 8 1 ) (1 , 9 3 9 , 0 4 5 ) - - (1 5 2 , 5 0 1 ) (2,757,627) T r a n s f e r s i n 2, 2 7 4 , 0 4 5 - - - 70 9 , 3 2 9 2,983,374 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, 6 0 7 , 9 6 4 (1 , 9 3 9 , 0 4 5 ) - - 55 6 , 8 2 8 225,747 Ne t c h a n g e i n f u n d b a l a n c e s 28 3 , 2 0 7 15 9 , 2 2 2 1, 5 5 2 , 6 7 9 46 , 2 6 8 (7 2 9 , 5 5 1 ) 1,311,825 Fu n d b a l a n c e s - b e g i n n i n g 7, 6 7 4 , 7 1 0 12 8 , 7 2 3 22 0 , 4 5 7 1, 2 3 9 , 3 0 4 4, 1 9 6 , 8 7 2 13,460,066 Fu n d b a l a n c e s - e n d i n g 7, 9 5 7 , 9 1 7 $ 28 7 , 9 4 5 $ 1, 7 7 3 , 1 3 6 $ 1, 2 8 5 , 5 7 2 $ 3, 4 6 7 , 3 2 1 $ 14,771,891$ 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 2 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)1,311,825$ 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 1,449,486$ Less current year depreciation (1,229,918) Net adjustment 219,568 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 (8,182) Contribution of capital assets to internal service fund (1,576,752) Other 2,705 Net adjustments (1,582,229) 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 487,690 Amortization of issuance costs, premiums and discounts (3,384) 484,306 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 Change of net pension asset 181,602 Change in compensated absences 132,327 Change in OPEB liability (90,763) Change in claims payable (44,275) Change in accrued interest payable 5,185 Allocation of internal service funds' net income 1,798,404 1,982,480 Change in net assets of governmental activities (Page 14)2,415,950$ FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012 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 2,039,602$ 679,423$ 2,719,025$ 1,560,211$ Accounts receivable - net 741,434 53,321 794,755 146,639 Inventories 88,678 - 88,678 42,136 Prepaid items - - - 146,497 Total current assets 2,869,714 732,744 3,602,458 1,895,483 Capital assets: Capital assets not being depreciated - - - 7,127 Capital assets being depreciated, net 448,349 1,473,266 1,921,615 2,082,522 Total noncurrent assets 448,349 1,473,266 1,921,615 2,089,649 Total assets 3,318,063 2,206,010 5,524,073 3,985,132 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 13,399 1,310 14,709 2,369 Unearned revenues 665,376 62,849 728,225 - Compensated absences 18,418 1,477 19,895 8,517 Capital lease - - - 54,010 Total current liabilities 697,193 65,636 762,829 64,896 Non-current liabilities: Compensated absences 83,223 5,084 88,307 9,685 OPEB liability 55,947 6,993 62,940 - Claims payable - - - 340,000 Total noncurrent liabilities 139,170 12,077 151,247 349,685 Total liabilities 836,363 77,713 914,076 414,581 NET ASSETS Invested in capital assets, net of related debt 448,349 1,473,266 1,921,615 2,035,639 Unrestricted 2,033,351 655,031 2,688,382 1,534,912 Total net assets 2,481,700$ 2,128,297$ 4,609,997$ 3,570,551$ Enterprise Funds Business-type Activities - MIAMI SHORES VILLAGE, FLORIDA STATEMENT OF NET ASSETS PROPRIETARY FUNDS SEPTEMBER 30, 2012 See notes to basic financial statements 19 Governmental Activities - Major Fund Major Fund Internal Service Sanitation Stormwater Total Funds Operating revenues: Charges for services 2,765,775$ 252,420$ 3,018,195$ 1,963,259$ Operating expenses: Administrative and general 744,271 18,775 763,046 808,391 Personnel expenses 808,235 76,587 884,822 148,220 Depreciation 151,208 60,056 211,264 204,055 Contractual services 504,871 20,343 525,214 - Insurance premiums and claims - - - 688,320 Total operating expenses 2,208,585 175,761 2,384,346 1,848,986 Operating income 557,190 76,659 633,849 114,273 Non-operating revenues (expenses): Interest income 1,298 458 1,756 1,782 Interest expense - - - (3,656) Total non-operating revenues (expenses)1,298 458 1,756 (1,874) Income before transfers and contributions 558,488 77,117 635,605 112,399 Transfers (out)(300,000) (35,000) (335,000) 109,253 Contributions - - - 1,576,752 Change in net assets 258,488 42,117 300,605 1,798,404 Total net assets, beginning 2,223,212 2,086,180 4,309,392 1,772,147 Total net assets, ending 2,481,700$ 2,128,297$ 4,609,997$ 3,570,551$ 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, 2012 See notes to basic financial statements. 20 Governmental Activities- Major Fund Major Fund Internal Service Sanitation Stormwater Total Funds Cash flows from operating activities: Cash received from customers, governments and other funds 2,826,290$ 257,059$ 3,083,349$ 1,897,735$ Cash paid to suppliers (1,342,813) (49,795) (1,392,608) (1,523,850) Cash paid for employees (639,335) (62,090) (701,425) (136,538) Net cash provided by operating activities 844,142 145,174 989,316 237,347 Cash flows from non-capital financing activities: Transfers in - - - 109,253 Transfers out (300,000) (35,000) (335,000) - Net cash (used in) non-capital financing activities (300,000) (35,000) (335,000) 109,253 Cash flows from capital related financing activities: Acquisition and construction of fixed assets (208,818) - (208,818) (27,297) Principal retirements of capital debt - - - (105,597) Interest paid on capital debt - - - (3,656) Net cash (used in) capital and related financing activities (208,818) - (208,818) (136,550) Cash flows from investing activities: Interest and other income 1,298 458 1,756 1,782 Net cash provided by investing activities 1,298 458 1,756 1,782 Net increase (decrease) in cash and cash equivalents 336,622 110,632 447,254 211,832 Cash and cash equivalents, October 1 1,702,980 568,791 2,271,771 1,348,379 Cash and cash equivalents, September 30 2,039,602$ 679,423$ 2,719,025$ 1,560,211$ Reconciliation of operating income to net cash provided by operating activities: Operating income 557,190$ 76,659$ 633,849$ 114,273$ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 151,208 60,056 211,264 204,055 Change in assets and liabilities: (Increase) decrease in: Accounts receivable 60,515 4,639 65,154 (65,524) Inventories - - - (6,167) Prepaid items - - - 6,838 Increase (decrease) in: Accounts payable and accrued liabilities (17,150) (1,637) (18,787) (7,896) Claims payable - - - (25) Compensated absences 52,157 1,317 53,474 (8,207) OPEB liability 14,138 1,767 15,905 - Unearned revenues 26,084 2,373 28,457 - Total adjustments 286,952 68,515 355,467 123,074 Net cash provided by operating activities 844,142$ 145,174$ 989,316$ 237,347$ Enterprise Funds Business-type Activities - MIAMI SHORES VILLAGE, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2012 See notes to basic financial statements 21 PensionPrivate TrustPurpose Funds Trust Agency ASSETS Cash and cash equivalents1,972,116$ 1,711,116$ 160,156$ Receivables: Accrued interest and dividends52,875 - - Total receivables52,875 - - Investments, at fair value U.S. Government securities3,783,367 - - Municipal bonds417,679 Corporate bonds3,261,217 - - Mutual funds - equity6,783,060 - - Common stocks7,733,471 - - Total investments21,978,794 - - Total assets24,003,785 1,711,116 160,156 LIABILITIES DROP liability500,104 - - Other liabilities- - 160,156 Total liabilities500,104 - - NET ASSETS Net assets held in trust23,503,681$ 1,711,116$ 160,156$ MIAMI SHORES VILLAGE, FLORIDA STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS SEPTEMBER 30, 2012 See notes to basic financial statements 22 PensionPrivate TrustPurpose Funds Trust ADDITIONS Contributions: Employer 1,080,000$ -$ Employees 384,524 - Total contributions 1,623,282 - Investment income: Unrealized (losses)2,537,026 - Realized gains 551,708 - Interest and dividend income 465,286 5,203 Total investment (losses) income 3,554,020 5,203 Less investment expenses 119,433 - Net investment income 3,434,587 5,203 Total additions 5,057,869 5,203 DEDUCTIONS Benefits paid 1,415,117 - Distribution to charter school - 50,000 Total deductions 1,415,117 50,000 Changes in net assets 3,642,752 (44,797) Net assets- beginning 19,860,929 1,755,913 Net assets- ending 23,503,681$ 1,711,116$ MIAMI SHORES VILLAGE, FLORIDA STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIDUCIARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012 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, 2012 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, 2012 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. 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. 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, 2012 was 0.94896811. 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, 2012 was 8.7855 mills ($8.7855 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 12-13 fiscal year. 29 M. Employee Benefit Plan and Net Pension Asset The Village provides a separate defined benefit pension plan for its police officers and general employees. At September 30, 2012, the Village recorded a net pension asset related to both plans in its government-wide statement of net assets. The net pension asset is a function of annual required contributions, interest, adjustments to the annual required contribution, annual pension costs and actual employers contributions made to the Plan. For governmental funds, the net pension asset or obligation are generally liquidated by the General Fund. Please refer to Note VIII for further information. N. Post Employment Benefits Other Than Pensions (OPEB) Pursuant to Section 112.0801, Florida Statutes, the Village is mandated to permit participation in the health insurance program by retirees and their eligible dependents at a cost to the retiree that is no greater than the cost at which coverage is available for active employees. Retirees are required to pay 100% of the premium rates where premiums are determined based upon a blended rates used for active employees and retirees. These premium rates were adjusted to reflect differing utilization rates by age and gender and the impact of the Medicare program on claim costs. The blended rates provide an implicit subsidy for retirees because, on an actuarial basis, their current and future claims are expected to result in higher costs to the plan on average than those of active employees. The Village currently provides these benefits in accordance with the vesting and retirement requirements of the Village. The Village is financing the post employee benefits on a pay-as-you go basis. As determined by an actuarial valuation, the Village records a net OPEB obligation in its government-wide and proprietary financial statements related to the implicit subsidy. For governmental funds, the OPEB obligation is generally liquidated by the General Fund. The OPEB plan does not issue separate financial statements. O. 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. P. Net Assets In accordance with GASB Statement No. 34, total equity as of September 30, 2012, 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. 30 Q. Fund Balance As of September 30, 2012, 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. The Village considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available unless there are legal documents/contracts that prohibit this, such as grant agreements requiring dollar for dollar spending. Additionally, the Village would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund balance when expenditures are made. Other Total Excise Police General Governmental Governmental General Tax Forfeiture Trust Funds Funds Fund Balances: Nonspendable: Prepaids 33,480$ -$ -$ -$ 59,270$ 92,750$ Restricted: Transportation - 287,945 - - 1,265,823 1,553,768 Capital projects - - - - - - Library - - - 98,955 1,712 100,667 Recreation - - - 82,556 13,450 96,006 Buildings - - - 64,205 - 64,205 Pilot Program - - - 85,377 - 85,377 Charter School - - - 954,479 - 954,479 Public Safety - - 1,773,136 - 16,051 1,789,187 Debt service - - - - 1,191,303 1,191,303 Committed: Encumbrances 77,512 - - - 73,244 150,756 Assigned:- - - - 846,468 846,468 Unassigned:7,846,925 - - - - 7,846,925 Total Fund Balances 7,957,917$ 287,945$ 1,773,136$ 1,285,572$ 3,467,321$ 14,771,891$ Fund Balances: Nonspendable 33,480$ - - - 59,270 92,750$ Restricted - 287,945 1,773,136 1,285,572 2,488,339 5,834,992 Committed 77,512 - - - 73,244 150,756 Assigned - - - - 846,468 846,468 Unassigned 7,846,925 - - - - 7,846,925 Total Fund Balances 7,957,917$ 287,945$ 1,773,136$ 1,285,572$ 3,467,321$ 14,771,891$ 31 R. Capital Contributions Capital contributions in proprietary fund financial statements arise from grants or outside contributions of resources restricted to capital acquisition and construction. S. Utility Billings Utility customers are billed monthly on a cycle basis. Unbilled revenue is recognized in the accompanying financial statements based upon estimates of revenues for services rendered between billing cycle dates and fiscal year end. T. 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. II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY By its nature as a local government unit, the Village is subject to various federal, state, and local laws and contractual regulations. The Village has no material violations of finance-related legal and contractual obligations. 1. Fund Accounting Requirements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Village, like any other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance related requirements, bond covenants, and segregation for management purposes. 2. Revenue Restrictions The Village has various restrictions placed over certain revenue sources from federal, state, or local requirements. The primary revenue sources include: Revenue Source Legal Restrictions of Use Gas Tax Roads, sidewalks, streets Transportation Surtax Transportation and roads Police Forfeitures Law Enforcement Federal Emergency Management Agency Disaster mitigation For the fiscal year ended September 30, 2012, the Village complied, in all material respects, with these revenue restrictions. 32 3. Excesses of expenditures over appropriations For the year ended September 30, 2012 expenditures exceeded appropriations in the General Fund’s recreation department by $6,373 and on the Grants Fund by $75,866. These over-expenditures were funded by greater than anticipated revenues or available fund balance. 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, 2012, the Village had the following investments: Investment Type Fair Value Weighted Average Maturity (Days) Weighted Average Maturity (Years) SBA- LGIP 165,805 52 n/a SBA- Fund B 102,256 n/a 4.08 Total $268,061 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, 2012, the value of each position held in the Village’s portfolio comprised of less than 5% of the Village’s investment assets. 33 Investments – Pension Plans As of September 30, 2012, the Plans had the following investments: Investment Maturities (in Years) Fair Less than 1 More than Investment Type Value Year 1-5 Years 6-10 Years 10 Years U.S. Government Securities $ 4,201,046 $ 7,460 $ 634,801 $ 1,034,024 $ 2,524,761 Corporate bonds 3,261,217 88,017 1,551,264 1,043,655 578,282 Total fixed income securities $ 7,462,263 $ 95,477 $ 2,186,065 $ 2,077,679 $ 3,103,042 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, 2012: Standard & Poor's Percentage of Quality Ratings of Credit Fixed Income Risk Debt Securities Fair Value Portfolio AAA $ 478,716 6.42% AA+ 381,788 5.12% AA 80,173 1.07% AA- 27,408 0.37% A 471,982 6.32% A- 646,291 8.66% BBB+ 534,459 7.16% BBB 514,747 6.90% BBB- 270,766 3.63% BB+ 32,400 0.43% N/R 4,023,533 53.92% $ 7,462,263 100.00% Concentration of Credit Risk –The investment policy of the Plan contains limitations on the amount that can be invested in any one issuer as well as maximum portfolio allocation percentages. As of September 30, 2012, 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. 34 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: Nonmajor Internal Excise Tax Police Sanitation Stormwater Governmental Service General Fund Forfeiture Fund Fund Funds Funds Total Receivables: Accounts -$ -$ -$ 688,649$ 48,725$ -$ 146,639$ 884,013$ Taxes 233,482 339,643 - 52,785 4,596 108,375 - 738,881 Grants and other 230,154 - 7,263 - - 45,404 - 282,821 Total receivables 463,636$ 339,643$ 7,263$ 741,434$ 53,321$ 153,779$ 146,639$ 1,905,715$ 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, 2012 was as follows: Beginning Additions Deletions Ending Governmental activities Capital assets not being depreciated: Land 2,358,437$ -$ -$ 2,358,437$ Construction in progress 730,027 995,989 (1,726,016) - Total capital assets not being depreciated 3,088,464 995,989 (1,726,016) 2,358,437 Capital assets being depreciated: Building and improvements 11,038,171 1,576,752 - 12,614,923 Land improvements 4,101,664 166,385 (8,150) 4,259,899 Infrastructure 17,083,150 215,546 - 17,298,696 Machinery and equipment 4,410,441 220,798 - 4,631,239 Total capital assets being depreciated 36,633,426 2,179,481 (8,150) 38,804,757 Less accumulated depreciation for: Building and improvements (2,831,925) (215,456) - (3,047,381) Land improvements (2,420,031) (190,323) 4,686 (2,605,668) Infrastructure (10,105,593) (467,607) - (10,573,200) Machinery and equipment (3,054,688) (356,532) - (3,411,220) Total accumulated depreciation (18,412,237) (1,229,918) 4,686 (19,637,469) Total capital assets being depreciated, net 18,221,189 949,563 (3,464) 19,167,288 Governmental activities capital assets, net $ 21,309,653 $ 1,945,552 $ (1,729,480) $ 21,525,725 35 Beginning Additions Deletions Ending Business-type activities Capital assets being depreciated: Machinery and equipment 2,074,535$ 208,818.00$ -$ 2,283,353$ Drainage improvements 2,006,589 - - 2,006,589 Total capital assets being depreciated 4,081,124 208,818 - 4,289,942 Less accumulated depreciation for: Machinery and equipment (1,683,796) (151,208) - (1,835,004) Drainage improvements (473,267) (60,056) - (533,323) Total accumulated depreciation (2,157,063) (211,264) - (2,368,327) Total capital assets being depreciated, net 1,924,061 (2,446) - 1,921,615 Business-type activities capital assets, net 1,924,061$ (2,446)$ -$ 1,921,615$ • Depreciation expense was charged to functions/programs of the Village as follows: Governmental activities General Government 51,447$ Public Safety 109,469 Public Works 690,739 Culture and Recreation 378,263 Total depreciation expense – governmental activities 1,229,918$ Business- type activities Sanitation 151,208$ Stormwater 60,056 Total depreciation expense – business- type activities 211,264$ 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 $85,000 in 2012 to a final payment of $195,000 in 2029. The bonds bear interest at variable rates ranging from 3.2% to 5.00%, payable semi-annually. The bonds are secured by ad-valorem revenues. Debt service requirements to maturity for the fiscal year ending September 30, 2012 are summarized as follows: September 30,Principal Interest Total 2013 90,000$ 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 110,000 95,800 205,800 2018-2022 630,000 392,863 1,022,863 2023-2027 805,000 219,500 1,024,500 2028-2029 380,000 28,750 408,750 2,315,000$ 1,170,800$ 3,485,800$ 36 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 $120,000 in 2012 to final payment of $305,000 in 2033. The bonds bear interest at variable rates ranging from 3% to 5%, payable semi-annually. The bonds are secured by ad-valorem revenues. Debt service requirements to maturity for the fiscal year ending September 30, 2012 are summarized as follows: September 30,Principal Interest Total 2013 125,000$ 193,776$ 318,776$ 2014 130,000 189,058 319,058 2015 135,000 183,920 318,920 2016 140,000 178,420 318,420 2017 145,000 172,648 317,648 2018-2022 820,000 758,275 1,578,275 2023-2027 1,025,000 538,413 1,563,413 2028-2032 1,320,000 247,500 1,567,500 2033 305,000 7,625 312,625 4,145,000$ 2,469,634$ 6,614,634$ 3. Series 2006 Promissory Note In May 2006, the Village borrowed $3,500,000 from SunTrust Bank. The note bears interest at a rate of 4.56% per annum. The note was obtained for the purpose of repaying outstanding notes and lines of credit. The Village pledge local option gas tax revenues and ad valorem tax revenues to secure the note. The note matures in May 2018 and requires quarterly principal and interest payments throughout the life of the note. Debt service requirements to maturity for the fiscal year ending September 30, 2012 are summarized as follows: September 30,Principal Interest Total 2013 298,091$ 82,236$ 380,327$ 2014 311,918 68,409 380,327 2015 326,387 53,941 380,327 2016 341,526 38,801 380,327 2017 357,368 22,959 380,327 2018 278,863 6,382 285,245 1,914,154$ 272,728$ 2,186,881$ 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 $27,313, including interest at 3.04% per annum, over a period of 60 months. Future minimum lease payments and the present value of net minimum lease payments as of September 30, 2012 are as follows: Governmental September 30,Activities 2013 54,010 Total minimum lease payments 54,010 Less amount representing interest (616) Present value of net minimum lease payments 53,394$ 37 The assets acquired through capital leases outstanding as of September 30, 2012 are as follows: Assets: Fleet $406,522 Less accumulated depreciation (281,633) Total $124,889 Long-term debt activity for the fiscal year ended September 30, 2012 was as follows: Beginning Ending Due Balance Balance within 10/1/2011 Additions Reductions 9/30/2012 one year Governmental Activities Bonds and notes payable: General obligation bonds payable-1999 2,400,000$ -$ (85,000)$ 2,315,000$ 90,000$ General obligation bonds payable-2004 4,265,000 - (120,000) 4,145,000 125,000 Promissory note – 2006 2,205,271 - (282,690) 1,922,581 298,091 Less deferred amounts – discounts (74,434) - 3,384 (71,050) (3,384) Total bonds and notes payable 8,795,837 - (484,306) 8,311,531 509,707 Other liabilities: Capital lease 159,607 -(105,597) 54,010 54,010 OPEB liability 263,711 90,763 -354,474 - Claims payable 508,411 - (44,275) 464,136 - Compensated absences 728,792 542,557 (496,721) 774,628 27,931 Total other liabilities 1,660,521 633,320 (646,594) 1,647,248 81,941 Governmental activity long-term liabilities 10,456,358$ 633,320$ (1,130,900)$ 9,958,779$ 591,648$ Business-type activities Other liabilities: OPEB liability 47,035$ 15,905$ $ -62,940$ - Compensated absences 100,640 60,706 (53,144) 108,202 19,895 Business-type activities Long-term liabilities 147,675$ 76,611$ (53,144)$ 171,142$ 19,895$ VII. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS Interfund balances at September 30, 2012 are as follows: Interfund Interfund Receivable Payable General Fund 62,197$ -$ Excise Tax - 51,699 Non-major governmental funds - 10,498 Total 62,197$ 62,197$ 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. 38 Interfund transfer activity for the year ended September 30, 2012 was as follows: Transfers In Transfers Out General fund $ 2,274,045 $ 666,081 Excise tax - 1,939,045 Sanitation fund - 300,000 Stormwater fund - 35,000 Non-major governmental funds 709,329 152,501 Internal service Funds 109,253 - Total $ 3,092,627 $ 3,092,627 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 (General Employees) and October 1, 2011 (Police) 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 22 Active participants: 71 32 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. 39 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, 2012, total liabilities for the DROP were $300,526. Funding Policy Plan members are required to contribute 6% of their annual covered salary. The employer contributions for the fiscal year ending September 30, 2012, determined using the actuarial valuation dated October 1, 2009, were 4.14% of covered payroll. The Village contributes at actuarially determined rates that are designed to accumulate sufficient assets to pay benefits when due. Funded Status and Funding Progress The funded status of the Plan as of October 1, 2009, the most recent actuarial valuation date, is as follows: UAAL as a Actuarial Actuarial Percentage Value Accrued Unfunded of Actuarial of Liability AAL Funded Covered Covered Valuation Assets (AAL) -(UAAL)Ratio Payroll Payroll Date (a)(b)(b-a)(a/b)(c)(b-a)/c 10/1/2009 9,335,036$ 9,258,119$ (76,917)$ 100.8%3,228,192$ -2.4% 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. 40 Annual Pension Cost and Net Pension Obligation (Asset) The Village's 2012 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, 2012 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 140,000 (Decrease) in net pension asset 6,342 Net pension asset, beginning of year 62,568 Net pension asset, end of year $ 68,910 % of Annual Net Fiscal Year Annual Pension Actual Pension Cost Pension Ended Cost (APC)Contribution Contribution (APC)Asset 9/30/2010 71,897$ 101,644$ 141%71,226$ 9/30/2011 133,658$ 125,000$ 94%62,568$ 9/30/2012 133,658$ 140,000$ 105%68,910$ Three Year Trend Information 41 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, 2012. STATEMENT OF PLAN NET ASSETS SEPTEMBER 30, 2012 ASSETS Cash and cash equivalents $ 463,459 Investments, at fair value 8,895,971 Accrued interest receivable 20,234 Total assets 9,379,664 LIABILITIES AND NET ASSETS DROP liability 300,526 Net assets held in trust for pension benefits $9,079,138 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, 2012 ADDITIONS Contributions $310,511 Net investment income 1,464,300 Total additions 1,774,811 DEDUCTIONS Pension benefits 543,816 Change in net assets 1,230,995 Net assets held in trust for pension benefits: Beginning 7,848,143 Ending $9,079,138 42 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, 2012, total liabilities for the DROP were $199,578. 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 $158,758 for the fiscal year ended September 30, 2012. This amount was recognized as expenditure and revenue in the General Fund. The Village is required to contribute the remaining amounts necessary to finance the benefits through periodic contributions of actuarially determined amounts. For the fiscal year ended September 30, 2012, the Village's contribution was 39.75% of annual covered earnings which was determined by the October 1, 2010 actuarial valuation. Funded Status and Funding Progress The funded status of the Plan as of October 1, 2010, the most recent actuarial valuation date, is as follows: UAAL as a Actuarial Actuarial Percentage Value Accrued Unfunded of Actuarial of Liability AAL Funded Covered Covered Valuation Assets (AAL) -(UAAL)Ratio Payroll Payroll Date (a)(b)*(b-a)(a/b)(c)(b-a)/c 10/1/2010 12,907,994$ 18,239,319$ 5,331,325$ 70.8%2,333,748$ 228.4% 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. 43 Annual Pension Cost and Net Pension Obligation (Asset) The Village's 2012 contribution was determined through an actuarial valuation performed as of October 1, 2010. Significant actuarial assumptions used in the latest actuarial valuation are as follows: Valuation date 10/1/10 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, 2012 was as follows: Annual required contribution $ 957,779 Interest on net pension obligation (21,321) Adjustment to annual required contribution 40,301 Annual pension cost 976,759 Contributions made 1,098,758 (Decrease) in net pension asset 121,999 Net pension asset, beginning of year 269,887 Net pension asset, end of year $ 391,886 % of Annual Net Fiscal Year Annual Pension Actual Pension Cost Pension Ended Cost (APC)Contribution Contribution (APC)Asset 9/30/2010 808,370$ 790,000$ 98%103,960$ 9/30/2011 846,109$ 1,012,036$ 120%269,887$ 9/30/2012 976,759$ 1,098,758$ 112%391,886$ Three Year Trend Information 44 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, 2012. STATEMENT OF NET PLAN ASSETS SEPTEMBER 30, 2012 ASSETS Cash and cash equivalents $ 1,508,657 Investments, at fair value 13,082,823 Accrued interest receivable 32,641 Total assets 14,624,121 LIABILITIES AND NET ASSETS DROP liability 199,578 Net assets held in trust for pension benefits $14,424,543 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, 2012, there were 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, 2012 ADDITIONS Contributions $1,312,771 Net investment income 1,970,287 Total additions 3,283,058 DEDUCTIONS Pension benefits 871,301 Change in net assets 2,411,757 Net assets held in trust for pension benefits: Beginning 12,012,786 Ending $14,424,543 45 Changes in the balances of estimated claims for the past three years ended September 30, 2012 are as follows: 2012 2011 2010 Unpaid claims, beginning $508,411 $543,707 $508,387 Incurred claims (including IBNR’s) - - 45,454 Claim payments and disbursements ( 44,275) ( 35,296) ( 10,134) Unpaid claims, ending $464,136 $508,411 $543,707 The above claims liability includes the Village's commitment to Miami-Dade County for a prior workers' compensation claim for $124,113. 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. 46 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, 2009. The actuarial valuation estimated the Unfunded Actuarial Accrued liability (UAAL) of $1,597,598 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 2010 $177,205 $73,974 41.74% $204,078 2011 186,086 79,418 42.68% 310,746 2012 186,086 79,418 42.68% 417,414 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 $1,597,598 0% $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. 47 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 On February 28, 2013, the Village issued the Miami Shores Village, Florida Refunding General Obligation Bond, Series 2003 (the 2003 Bond) for $2,278,000. Proceeds of the 2003 Bond are to be used for the refunding of the Miami Shores Village, Florida Municipal Loan Council Revenue Bonds, Series 1999 (the 1999 General Obligation Bonds (Aquatic Center)). . REQUIRED SUPPLEMENTARY INFORMATION MIAMI SHORES VILLAGE, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE GENERAL FUND FISCAL YEAR ENDED SEPTEMBER 2012 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues: Taxes: Property taxes5,468,318$ 5,468,318$ 5,524,395$ 56,077$ Licenses and permits: Business licenses - Village 70,000 70,000 77,456 7,456 Business licenses - County 16,000 16,000 19,413 3,413 Building permits 450,000 462,000 692,653 230,653 Certificate of reoccupancy 9,000 9,000 10,320 1,320 Other licenses and permits 98,000 98,000 114,991 16,991 Total licenses and permits643,000 655,000 914,833 259,833 Intergovernmental revenues: State shared revenues: State revenue sharing212,269 212,269 209,762 (2,507) Local government half cent sales tax 660,419 660,419 681,635 21,216 Other 1,100 1,100 1,077 (23) Total intergovernmental revenues873,788 873,788 892,474 18,686 Charges for services: Physical environment48,000 48,000 49,434 1,434 Police extra duty271,670 271,670 316,771 45,101 Landscape maintenance19,901 19,901 19,901 - Culture/recreation 983,612 1,088,612 1,347,989 259,377 Total charges for services 1,323,183 1,428,183 1,734,095 305,912 Fines and forfeitures: Court fines and costs 69,000 69,000 72,854 3,854 School crossing guards 20,000 20,000 23,722 3,722 Other 161,500 171,500 224,350 52,850 Total fines and forfeitures 250,500 260,500 320,926 60,426 Miscellaneous: Rents 25,000 25,000 74,667 49,667 Other 32,450 32,450 286,651 254,201 Total miscellaneous 57,450 57,450 361,318 303,868 Interest 24,000 24,000 42,552 18,552 Total revenues 8,640,239$ 8,767,239$ 9,790,593$ 1,023,354$ (Continued) Budgeted Amounts See notes to budgetary comparison schedule 48 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 council5,906$ 5,906$ 4,662$ 1,244$ Village attorney 120,299 130,299 111,216 19,083 Village manager 234,189 234,189 221,487 12,702 Village clerk 123,528 132,028 117,109 14,919 Code enforcement 166,528 166,528 152,052 14,476 Building department 345,251 357,251 356,626 625 Planning and zoning153,885 153,885 138,808 15,077 Finance463,026 477,770 438,938 38,832 Other general government 646,913 665,913 557,022 108,891 Total general government 2,259,525 2,323,769 2,097,920 225,849 Public safety: Law enforcement 5,775,434 5,795,568 5,429,273 366,295 School crossing guard38,927 39,927 39,912 15 Total public safety 5,814,361 5,835,495 5,469,185 366,310 Public works: Parks386,807 389,807 389,806 1 Street maintenance452,940 453,223 426,566 26,657 Public works administration355,359 346,359 345,846 513 Recreation maintenance133,731 141,231 140,604 627 Total public services1,328,837 1,330,620 1,302,822 27,798 Culture and recreation: Recreation1,848,267 1,970,215 1,890,353 79,862 Library 379,496 379,496 355,070 24,426 Total culture and recreation2,227,763 2,349,711 2,245,423 104,288 Total expenditures11,630,486 11,839,595 11,115,350 724,245 Deficiency of revenues over expenditures (2,990,247) (3,072,356) (1,324,757) 1,747,599 Other financing sources (uses) Transfers in2,526,000 2,526,000 2,274,045 (251,955) Transfers out(666,081) (666,081) (666,081) - Appropriations from prior year fund balance 1,130,328 1,212,437 - (1,212,437) Total other financing sources (uses)2,990,247 3,072,356 1,607,964 (1,464,392) Net change in fund balance- - 283,207 283,207 Fund balance, beginning of year - - 7,674,710 7,674,710 Fund balance, end of year -$ -$ 7,957,917$ 7,957,917$ FISCAL YEAR ENDED SEPTEMBER 2012 Budgeted Amounts See notes to budgetary comparison schedule 49 Variance with Final Budget Budgeted AmountsActualPositive Original Final Amounts (Negative) Revenues: Public service taxes2,191,000$ 2,191,000$ 2,098,267$ (92,733)$ Total revenues2,191,000 2,191,000 2,098,267 (92,733) Other financing uses Transfers out(2,191,000) (2,191,000) (1,939,045) 251,955 Total other financing uses(2,191,000) (2,191,000) (1,939,045) 251,955 Net change in fund balance- - 159,222 159,222$ Fund balances, beginning- - 128,723 Fund balances, ending-$ -$ 287,945$ Excise Tax MIAMI SHORES VILLAGE, FLORIDA BUDGETARY COMPARISON SCHEDULES MAJOR SPECIAL REVENUE FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2012 See notes to budgetary comparison schedules 50 51 MIAMI SHORES VILLAGE, FLORIDA NOTE TO BUDGETARY COMPARISON SCHEDULE FISCAL YEAR ENDED SEPTEMBER 30, 2012 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. Budgetary 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 $209,109, in the Local Option Gas Tax Fund Totaling $207,977, in the Capital Improvement Fund totaling $1,117,165, and in the Debt Service Fund totaling $8,250 during the fiscal year ended September 30, 2012 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, 2012 expenditures exceeded appropriations in the General Fund’s recreation department by $6,373 and on the Grants Fund by $75,866. These over-expenditures were funded by greater than anticipated revenues or available fund balance. UAAL as a Actuarial Actuarial Percentage Value Accrued Unfunded of Actuarial of Liability AAL Funded Covered Covered Valuation Assets (AAL) -(UAAL)Ratio Payroll Payroll Date (a)(b)(b-a)(a/b)(c)(b-a)/c 10/1/2009 9,335,036$ 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 is performed every other year 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 10/1/2010 12,907,994$ 18,239,319$ 5,331,325$ 70.8%2,333,748$ 228.4% 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% *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 52 Fiscal Year Annual Ended Required Percentage September 30,Contribution Contributed 2012 133,658$ 105% 2011 133,658 94% 2010 68,362 149% 2009 58,998 169% 2008 88,622 100% 2007 56,709 128% Fiscal Year Annual Ended Required Percentage September 30,Contribution Contributed 2012 957,779$ 98% 2011 838,984 100% 2010 808,791 100% 2009 770,594 100% 2008 702,455 100% 2007 700,455 100% Police Officers' Retirement System MIAMI SHORES VILLAGE, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS PENSION TRUST FUNDS General Employees' Retirement System 53 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. Grants – This fund accounts for the use of specific designated resources related to grant programs. Law Enforcement Training – This fund accounts for proceeds obtained through fines designated specifically for training law enforcement officers. 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 Capital Improvement Fund – This fund accounts for major capital acquisitions and projects to improve the Village. 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 Su r t a x Ga s T a x Co m m u n i t i e s Gr a n t s Tr a i n i n g 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 60 9 , 9 7 2 $ 54 8 , 4 1 3 $ - $ - $ 15 , 4 6 6 $ 1,173,851$ In v e s t m e n t s - - - - - - Ac c o u n t s r e c e i v a b l e - n e t 82 , 0 1 4 26 , 3 6 0 - 38 , 9 7 4 58 5 147,933 Du e f r o m o t h e r f u n d s - - - - Pr e p a i d i t e m s - - - - - - T o t a l a s s e t s 69 1 , 9 8 6 $ 57 4 , 7 7 3 $ - $ 38 , 9 7 4 $ 16 , 0 5 1 $ 1,321,784$ 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 93 6 $ - $ - $ 2, 0 8 4 $ - $ 3,020$ Du e t o o t h e r f u n d s - - - 10 , 4 9 8 - 10,498 Un e a r n e d r e v e n u e s - - - 11 , 2 3 0 - 11,230 T o t a l l i a b i l i t i e s 93 6 - - 23 , 8 1 2 - 24,748 FU N D B A L A N C E S No n s p e n d a b l e - - - - - - Re s t r i c t e d 6 9 1 , 0 5 0 5 7 4 , 7 7 3 - 1 5 , 1 6 2 1 6 , 0 5 1 1 , 2 9 7 , 0 3 6 Co m m i t t e d - - - - - - T o t a l f u n d b a l a n c e s 69 1 , 0 5 0 57 4 , 7 7 3 - 15 , 1 6 2 16 , 0 5 1 1,297,036 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 69 1 , 9 8 6 $ 57 4 , 7 7 3 $ - $ 38 , 9 7 4 $ 16 , 0 5 1 $ 1,321,784$ 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 2 Sp e c i a l R e v e n u e F u n d s 54 (Continued) Debt Service Total CapitalCharterNonmajor ImprovementHigh SchoolGovernmental GO Bonds Fund Construction Total Funds ASSETS Cash and cash equivalents1,185,457$ 846,468$ 73,244$ 919,712$ 3,279,020$ Accounts receivable - net5,846 - - - 153,779 Due from other funds- - - - - Prepaid items59,270 - - - 59,270 Total assets 1,250,573$ 846,468$ 73,244$ 919,712$ 3,492,069$ LIABILITIES Accounts payable and accrued liabilities-$ -$ -$ -$ 3,020$ Due to other funds- - - - 10,498 Unearned revenues- - - - 11,230 Total liabilities- - - - 24,748 FUND BALANCES Nonspendable59,270 - - - 59,270 Restricted1,191,303 - - - 2,488,339 Committed- 846,468 73,244 919,712 919,712 Total fund balances 1,250,573 846,468 73,244 919,712 3,467,321 Total liabilities and fund balances1,250,573$ 846,468$ 73,244$ 919,712$ 3,492,069$ MIAMI SHORES VILLAGE, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2012 Capital Projects 55 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 Su r t a x Ga s T a x Co m m u n i t i e s Gr a n t s Tr a i n i n g 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 5 , 3 1 7 35 2 , 1 0 4 - - - 697,421 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 - - - 21 7 , 6 8 1 - 217,681 F i n e s a n d f o r f e i t u r e s - - - - 3, 8 8 3 3,883 M i s c e l l a n e o u s - - - - - - I n t e r e s t i n c o m e 51 2 84 5 - - 35 1,392 T o t a l r e v e n u e s 34 5 , 8 2 9 35 2 , 9 4 9 - 21 7 , 6 8 1 3, 9 1 8 920,377 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 5 5 , 2 2 7 $ - $ 1 5 5 , 2 2 7 $ P u b l i c s a f e t y - - - - 2, 4 9 4 2,494 P u b l i c w o r k s 18 3 , 4 5 9 13 1 , 4 0 1 67 , 1 4 0 - - 382,000 C a p i t a l o u t l a y - 15 3 , 6 3 2 - 62 , 4 5 4 - 216,086 D e b t s e r v i c e : P r i n c i p a l - - - - - - I n t e r e s t - - - - - - T o t a l e x p e n d i t u r e s 18 3 , 4 5 9 28 5 , 0 3 3 67 , 1 4 0 21 7 , 6 8 1 2, 4 9 4 755,807 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 16 2 , 3 7 0 67 , 9 1 6 (6 7 , 1 4 0 ) - 1, 4 2 4 164,570 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 ) - ( 1 5 2 , 5 0 1 ) - - - ( 1 5 2 , 5 0 1 ) T r a n s f e r s i n - - 58 , 7 9 9 - - 58,799 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 5 2 , 5 0 1 ) 58 , 7 9 9 - - (93,702) Ne t c h a n g e i n f u n d b a l a n c e 16 2 , 3 7 0 (8 4 , 5 8 5 ) (8 , 3 4 1 ) - 1, 4 2 4 70,868 Fu n d b a l a n c e s , b e g i n n i n g 52 8 , 6 8 0 65 9 , 3 5 8 8, 3 4 1 15 , 1 6 2 14 , 6 2 7 1,226,168 Fu n d b a l a n c e s , e n d i n g 69 1 , 0 5 0 $ 57 4 , 7 7 3 $ - $ 15 , 1 6 2 $ 16 , 0 5 1 $ 1,297,036$ 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 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 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 56 (Continued) Debt Service Total CapitalCharterNonmajor ImprovementHigh SchoolGovernmental GO Bonds Fund Construction Total Funds Revenues: Property taxes553,690$ -$ -$ -$ 553,690$ Other taxes- - - - 697,421 Intergovernmental revenues- - 25,560 25,560 243,241 Fines and forfeitures- - - - 3,883 Miscellaneous- - - - - Interest income2,849 6,740 203 6,943 11,184 Total revenues556,539 6,740 25,763 32,503 1,509,419 Expenditures: Current: General government10,877$ -$ 417$ 417$ 166,521$ Public safety - - - - 2,494 Public works- - - - 382,000 Capital outlay- 1,093,113 26,195 1,119,308 1,335,394 Debt service: Principal 487,690 - - - 487,690 Interest 421,699 - - - 421,699 Total expenditures920,266 1,093,113 26,612 1,119,725 2,795,798 Excess (deficiency) of revenues over (under) expenditures before other financing sources(363,727) (1,086,373) (849) (1,087,222) (1,286,379) Other financing sources: Transfers (out)- - - - (152,501) Transfers in380,330 270,200 - 270,200 709,329 Total other financing sources (uses)380,330 270,200 - 270,200 556,828 Net change in fund balance16,603 (816,173) (849) (817,022) (729,551) Fund balances, beginning1,233,970 1,662,641 74,093 1,736,734 4,196,872 Fund balances, ending1,250,573$ 846,468$ 73,244$ 919,712$ 3,467,321$ MIAMI SHORES VILLAGE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2012 Capital Projects 57 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 7 2 , 1 4 0 $ 3 7 2 , 1 4 0 $ 3 5 2 , 1 0 4 $ ( 2 0 , 0 3 6 ) $ 2 7 5 , 0 0 0 $ 2 7 5 , 0 0 0 $ 3 4 5 , 3 1 7 $ 70,317$ I n t e r e s t i n c o m e 1, 0 5 1 1, 0 5 1 84 5 (2 0 6 ) 81 7 81 7 512 (305) T o t a l r e v e n u e s 3 7 3 , 1 9 1 3 7 3 , 1 9 1 3 5 2 , 9 4 9 ( 2 0 , 2 4 2 ) 2 7 5 , 8 1 7 2 7 5 , 8 1 7 345,829 70,012 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 45 2 , 8 2 4 46 0 , 8 0 1 28 5 , 0 3 3 17 5 , 7 6 8 34 6 , 8 1 7 34 6 , 8 1 7 183,459 163,358 T o t a l e x p e n d i t u r e s 45 2 , 8 2 4 46 0 , 8 0 1 28 5 , 0 3 3 17 5 , 7 6 8 34 6 , 8 1 7 34 6 , 8 1 7 183,459 163,358 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 (7 9 , 6 3 3 ) (8 7 , 6 1 0 ) 67 , 9 1 6 15 5 , 5 2 6 (7 1 , 0 0 0 ) (7 1 , 0 0 0 ) 162,370 233,370 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 ) (2 9 3 , 7 0 2 ) (1 5 2 , 5 0 1 ) 14 1 , 2 0 1 - - - - 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 17 3 , 3 3 5 38 1 , 3 1 2 - (3 8 1 , 3 1 2 ) 71 , 0 0 0 71 , 0 0 0 - (71,000) 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 ) 79 , 6 3 3 87 , 6 1 0 (1 5 2 , 5 0 1 ) (2 4 0 , 1 1 1 ) 71 , 0 0 0 71 , 0 0 0 - (71,000) Ne t c h a n g e i n f u n d b a l a n c e - - (8 4 , 5 8 5 ) (8 4 , 5 8 5 ) $ - - 162,370 162,370$ Fu n d b a l a n c e s , b e g i n n i n g - - 65 9 , 3 5 8 - - 528,680 Fu n d b a l a n c e s , e n d i n g - $ - $ 57 4 , 7 7 3 $ - $ - $ 691,050$ 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 2 58 Va r i a n c e w i t h 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 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 ) Re v e n u e s : 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 4 1 , 8 1 5 $ 1 4 1 , 8 1 5 $ 2 1 7 , 6 8 1 $ 75,866 $ T o t a l r e v e n u e s 1 4 1 , 8 1 5 1 4 1 , 8 1 5 2 1 7 , 6 8 1 75,866 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 14 1 , 8 1 5 14 1 , 8 1 5 2 1 7 , 6 8 1 (75,866) T o t a l e x p e n d i t u r e s 1 4 1 , 8 1 5 14 1 , 8 1 5 2 1 7 , 6 8 1 (75,866) Ne t c h a n g e i n f u n d b a l a n c e - - - - $ Fu n d b a l a n c e s , b e g i n n i n g - - 15 , 1 6 2 Fu n d b a l a n c e s , e n d i n g - $ - $ 15 , 1 6 2 $ Gr a n t s F u n d 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 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 2 59 (Continued) 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 5 3 , 6 9 0 $ 1 3 , 6 5 6 $ - $ - $ - $ -$ I n t e r e s t i n c o m e - - 2, 8 4 9 2, 8 4 9 - - 6,740 6,740 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 5 6 , 5 3 9 1 6 , 5 0 5 - - 6,740 6,740 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 0 , 8 7 7 9 , 3 2 3 - - - - C a p i t a l o u t l a y - - - - 2 7 0 , 2 0 0 1 , 3 8 7 , 3 6 5 1 , 0 9 3 , 1 1 3 294,252 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 8 7 , 6 9 0 8 2 , 0 0 5 - - - - I n t e r e s t 4 3 9 , 7 1 9 43 9 , 7 1 9 42 1 , 6 9 9 18 , 0 2 0 - - - - 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 0 , 2 6 6 10 9 , 3 4 8 2 7 0 , 2 0 0 1, 3 8 7 , 3 6 5 1,093,113 294,252 (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 6 3 , 7 2 7 ) 12 5 , 8 5 3 ( 2 7 0 , 2 0 0 ) (1 , 3 8 7 , 3 6 5 ) (1,086,373) 300,992 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 3 8 0 , 3 3 0 ( 1 0 9 , 2 5 0 ) 2 7 0 , 2 0 0 2 7 0 , 2 0 0 2 7 0 , 2 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 - - - - - 1, 1 1 7 , 1 6 5 - (1,117,165) 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 38 0 , 3 3 0 (1 0 9 , 2 5 0 ) 27 0 , 2 0 0 1, 3 8 7 , 3 6 5 270,200 (1,117,165) Ne t c h a n g e i n f u n d b a l a n c e - - 16 , 6 0 3 16 , 6 0 3 $ - - (816,173) (816,173)$ Fu n d b a l a n c e s , b e g i n n i n g - - 1, 2 3 3 , 9 7 0 - - 1,662,641 Fu n d b a l a n c e s , e n d i n g - $ - $ 1, 2 5 0 , 5 7 3 $ - $ - $ 846,468$ 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 2 De b t S e r v i c e F u n d C a p i t a l I m p r o v e m e n t F u n d 60 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 equivalents953,912$ 606,299$ 1,560,211$ Accounts receivable - net 146,639 - 146,639 Inventories- 42,136 42,136 Prepaid items146,497 - 146,497 Total current assets1,247,048 648,435 1,895,483 Capital assets: Capital assets not being depreciated- 7,127 7,127 Capital assets being depreciated, net - 2,082,522 2,082,522 Total noncurrent assets- 2,089,649 2,089,649 Total assets 1,247,048$ 2,738,084$ 3,985,132$ LIABILITIES Current liabilities: Accounts payable and accrued liabilities -$ 2,369$ 2,369$ Compensated absences- 8,517 8,517 Capital lease- 54,010 54,010 Total current liabilities- 64,896 64,896 Noncurrent liabilities: Compensated absences- 9,685 9,685 Claims payable340,000 - 340,000 Total noncurrent liabilities340,000 9,685 349,685 Total liabilities340,000 74,581 414,581 NET ASSETS Invested in capital assets, net of related debt - 2,035,639 2,035,639 Unrestricted907,048 627,864 1,534,912 Total net assets907,048$ 2,663,503$ 3,570,551$ MIAMI SHORES VILLAGE, FLORIDA COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS SEPTEMBER 30, 2012 61 Risk Fleet Management Maintenance Fund Fund Total Revenues: Charges for services887,804$ 1,075,455$ 1,963,259$ Operating expenses: Administrative and general 45,182$ 763,209$ 808,391$ Personnel expenses- 148,220 148,220 Depreciation- 204,055 204,055 Insurance premiums and claims688,320 - 688,320 Total operating expenses733,502 1,115,484 1,848,986 Operating income154,302 (40,029) 114,273 Non-operating revenues (expenses): Interest income1,211 571 1,782 Interest expense- (3,656) (3,656) Total non-operating revenues (expenses)1,211 (3,085) (1,874) Income before transfers and contributions155,513 (43,114) 112,399 Transfers in- 109,253 109,253 Contributions- 1,576,752 1,576,752 Change in net assets155,513 1,642,891 1,798,404 Net assets, beginning751,535 1,020,612 1,772,147 Net assets, ending907,048$ 2,663,503$ 3,570,551$ MIAMI SHORES VILLAGE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS INTERNAL SERVICE FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2012 62 RiskFleet ManagementMaintenance Fund Fund Total Cash flows from operating activities: Cash received from customers, governments and other funds822,280$ 1,075,455$ 1,897,735$ Cash paid to suppliers(726,689) (797,161) (1,523,850) Cash paid to employees- (136,538) (136,538) Net cash provided by operating activities95,591 141,756 237,347 Cash flows from non-capital financing activities: Transfers in - 109,253 109,253 Net cash (used in) non-capital financing activities- 109,253 109,253 Cash flows from capital related financing activities: Acquisition and construction of fixed assets- (27,297) (27,297) Principal retirements of capital debt - (105,597) (105,597) Interest paid on capital debt - (3,656) (3,656) Net cash (used in) capital and related financing activities- (136,550) (136,550) Cash flows from investing activities: Interest and other income1,211 571 1,782 Net cash provided by investing activities1,211 571 1,782 Net increase (decrease) in cash and cash equivalents96,802 115,030 211,832 Cash and cash equivalents, October 1857,110 491,269 1,348,379 Cash and cash equivalents, September 30953,912$ 606,299$ 1,560,211$ Reconciliation of operating income to net cash provided by operating activities: Operating income154,302$ (40,029)$ 114,273$ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation - 204,055 204,055 Change in assets and liabilities: (Increase) decrease in: Accounts receivable(65,524) - (65,524) Inventories- (6,167) (6,167) Prepaids6,838 - 6,838 Increase (decrease) in: Accounts payable and accrued liabilities - (7,896) (7,896) Claims payable(25) - (25) Compensated absences- (8,207) (8,207) Total adjustments(58,711) 181,785 123,074 Net cash provided by operating activities95,591$ 141,756$ 237,347$ MIAMI SHORES VILLAGE, FLORIDA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2012 63 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 equivalents1,508,657$ 463,459$ 1,972,116$ Receivables: Accrued interest and dividends32,641 20,234 52,875 Total receivables32,641 20,234 52,875 Investments, at fair value U.S. Government securities2,370,093 1,413,274 3,783,367 Municipal bonds262,612 155,067 417,679 Corporate bonds2,036,715 1,224,502 3,261,217 Mutual funds- equity3,080,833 3,702,227 6,783,060 Common stocks5,332,570 2,400,901 7,733,471 Total investments13,082,823 8,895,971 21,978,794 Total assets14,624,121 9,379,664 24,003,785 LIABILITIES DROP liability199,578 300,526 500,104 Total liabilities199,578 300,526 500,104 NET ASSETS Held in trust for pension benefits14,424,543$ 9,079,138$ 23,503,681$ MIAMI SHORES VILLAGE, FLORIDA COMBINING STATEMENT OF FIDUCIARY NET ASSETS PENSION TRUST FUNDS SEPTEMBER 30, 2012 64 General Police Employee's PensionPension Trust Trust Total ADDITIONS Contributions: Employer 940,000$ 140,000$ 1,080,000$ Employees214,013 170,511 384,524 State of Florida158,758 - 158,758 Total contributions1,312,771 310,511 1,623,282 Investment income: Unrealized gains1,450,471 1,086,555 2,537,026 Realized gains 315,113 236,595 551,708 Interest and dividend income 280,597 184,689 465,286 Total investment (losses)2,046,181 1,507,839 3,554,020 Less investment expenses75,894 43,539 119,433 Net investment income1,970,287 1,464,300 3,434,587 Total additions3,283,058 1,774,811 5,057,869 DEDUCTIONS Benefits paid871,301 543,816 1,415,117 Changes in net assets2,411,757 1,230,995 3,642,752 Net assets- beginning12,012,786 7,848,143 19,860,929 Net assets- ending14,424,543$ 9,079,138$ 23,503,681$ MIAMI SHORES VILLAGE, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS PENSION TRUST FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012 65 Balance Balance September 30, September 30, 2011 Additions Deductions 2012 ASSETS Cash and cash equivalents152,835$ 7,321$ -$ 160,156$ LIABILITIES Other liabilities152,835$ 7,321$ -$ 160,156$ MIAMI SHORES VILLAGE, FLORIDA STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUND SEPTEMBER 30, 2012 POLICE INSURANCE TRUST AGENCY FUND 66 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 67-71 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 72-76 These schedules contain information to help the reader assess the Village’s most significant local revenue source, the property tax. Debt Capacity 77-79 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 80-81 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 82 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 2 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 3 , 1 6 0 , 1 8 4 $ 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 5 , 8 3 4 , 9 9 2 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 , 5 9 2 , 7 3 4 9 , 9 0 4 , 8 2 4 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 ) (1,860,128) (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 8 , 5 8 7 , 9 1 0 2 6 , 1 6 0 , 5 8 3 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 6,092,958 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 1 , 6 1 5 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 , 6 8 8 , 3 8 2 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 , 6 0 9 , 9 9 7 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 1,225,433 941,060 761,511 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 5 , 0 8 1 , 7 9 9 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 5 , 8 3 4 , 9 9 2 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 , 2 8 1 , 1 1 6 1 2 , 2 9 0 , 1 5 5 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 ) (1,339,269) (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 3 , 1 9 7 , 9 0 7 $ 3 0 , 4 6 9 , 9 7 5 $ 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 $ 7,318,391 $ 5,005,778$ 5,901,873$ 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 ) NE T A S S E T S B Y C O M P O N E N T MI A M I S H O R E S V I L L A G E , F L O R I D A 67 20 1 2 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 3 6 , 7 6 3 $ 2 , 3 9 6 , 4 4 6 $ 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 $ 3,517,307$ 2,420,450$ P u b l i c s a f e t y 5 , 5 0 9 , 5 0 8 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 2 , 3 4 6 , 5 7 5 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 , 5 8 3 , 6 8 8 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 2 5 , 3 5 5 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 3 , 2 0 1 , 8 8 9 1 2 , 8 8 5 , 0 4 8 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 12,471,532 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 0 8 , 5 8 5 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 7 5 , 7 6 1 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 , 3 8 4 , 3 4 6 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 2,334,876 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 , 5 8 6 , 2 3 5 1 5 , 3 3 3 , 3 2 5 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 14,806,408 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 , 0 6 9 , 1 3 5 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 2 , 3 2 6 , 3 7 6 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 7 2 7 , 1 6 0 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 , 2 9 3 , 7 8 8 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 1 7 0 , 2 3 4 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 4 7 , 4 4 7 6 5 , 9 2 1 1 7 1 , 5 4 9 - - - 1 8 8 , 7 0 9 2,111,291 - - 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 5 , 6 3 4 , 1 4 0 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 5,023,734 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 , 7 6 5 , 7 7 5 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 5 2 , 4 2 0 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 3 , 0 1 8 , 1 9 5 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 2,876,192 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 8 , 6 5 2 , 3 3 5 $ 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 $ 7,899,926$ 3,658,017$ 4,239,900$ Fi s c a l Y e a r (C o n t i n u e 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 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 ) 68 20 1 2 20 1 1 20 1 0 20 0 9 20 0 8 20 0 7 20 0 6 200520042003 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 ( 7 , 5 6 7 , 7 5 0 ) $ ( 8 , 7 1 5 , 3 6 2 ) $ ( 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 6 3 3 , 8 4 9 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 (6 , 9 3 3 , 9 0 1 ) ( 8 , 2 4 9 , 9 3 0 ) ( 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 ) (6,906,482) (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 , 0 7 8 , 0 8 5 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 , 0 9 8 , 2 6 7 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 1 8 , 0 3 4 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 4 9 3 , 2 4 3 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 6 1 , 0 7 1 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 3 3 5 , 0 0 0 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 9 , 9 8 3 , 7 0 0 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 9,329,199 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 1 , 7 5 6 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 ( 3 3 5 , 0 0 0 ) ( 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 b u s i n e s s - t y p e a c t i v i t i e s ( 3 3 3 , 2 4 4 ) ( 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 ) (134,958) (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 9 , 6 5 0 , 4 5 6 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 9,194,241 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 2 , 4 1 5 , 9 5 0 1 , 7 9 2 , 8 3 0 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 3 0 0 , 6 0 5 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 , 7 1 6 , 5 5 5 $ 2 , 0 2 5 , 5 7 5 $ 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 $ 2,287,759 $ (896,093)$ (1,058,577)$ 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 ) Fi s c a l Y e a r 69 20 1 2 20 1 1 20 1 0 20 0 9 20 0 8 20 0 7 20 0 6 200520042003 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 $ 638,373$ 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 8 749,221 N o n s p e n d a b l e * 3 3 , 4 8 0 1 , 8 8 5 - - - - - - - - R e s t r i c t e d * - - - - - - - - - - C o m m i t t e d * 7 7 , 5 1 2 6 3 , 1 0 9 - - - - - - - - A s s i g n e d * - - - - - - - - - - U n a s s i g n e d * 7 , 8 4 6 , 9 2 5 7 , 6 0 9 , 7 1 6 - - - - - - - - To t a l g e n e r a l f u n d 7 , 9 5 7 , 9 1 7 $ 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 $ 1,606,364 $ 1,190,204$ 1,387,594$ 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 $ 1,592,981$ 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 3 200,656 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 8 892,475 N o n s p e n d a b l e * 5 9 , 2 7 0 6 1 , 2 2 5 - - - - - - - - R e s t r i c t e d * 5 , 8 3 4 , 9 9 2 3 , 9 7 5 , 9 8 3 - - - - - - - - C o m m i t t e d * 9 1 9 , 7 1 2 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 6 , 8 1 3 , 9 7 4 $ 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 $ 2,256,548 $ 7,037,786$ 2,686,112$ *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 70 20 1 2 20 1 1 20 1 0 20 0 9 20 0 8 20 0 7 20 0 6 200520042003 Re v e n u e s : Ta x e s 6 , 0 7 8 , 0 8 5 $ 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 $ 4,808,754$ Pu b l i c s e r v i c e s t a x e s 2 , 7 9 5 , 6 8 8 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 1,221,854 Li c e n s e s a n d p e r m i t s 9 1 4 , 8 3 3 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 8 433,156 In t e r g o v e r n m e n t a l 1 , 1 3 5 , 7 1 5 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 1,202,204 Ch a r g e s f o r s e r v i c e s 1 , 7 3 4 , 0 9 5 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 3 629,181 Fi n e s a n d f o r f e i t u r e s 1 , 9 5 5 , 8 3 7 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 1 249,560 Mi s c e l l a n e o u s 4 9 3 , 2 4 3 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 4 267,731 In v e s t m e n t e a r n i n g s 5 9 , 2 8 9 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 55,096 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 31,906 Co n f i s c a t i o n p r o p e r t y - - - - - - - - 31,697 60,870 To t a l r e v e n u e s 1 5 , 1 6 6 , 7 8 5 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 14,118,298 10,030,167 8,960,312 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 , 2 9 1 , 1 9 0 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 2,212,233 Pu b l i c s a f e t y 5 , 5 3 6 , 1 6 0 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 3,583,974 Pu b l i c w o r k s 1 , 6 8 4 , 8 2 2 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 1,522,246 Cu l t u r e a n d r e c r e a t i o n 2 , 2 0 9 , 6 6 0 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 1,894,537 Ca p i t a l o u t l a y 1 , 4 4 9 , 4 8 6 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 6 556,783 De b t s e r v i c e s : P r i n c i p a l 4 8 7 , 6 9 0 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 2 168,202 I n t e r e s t 4 2 1 , 5 9 9 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 3 403,445 274,707 159,124 To t a l e x p e n d i t u r e s 1 4 , 0 8 0 , 6 0 7 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 18,693,376 11,062,136 10,097,099 (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 1 , 0 8 6 , 1 7 8 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 ) (1,136,787) 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 1,680,000 Pa y m e n t t o r e f u n d i n g a g e n t - - - - - (330,000) Tr a n s f e r i n 2 , 9 8 3 , 3 7 4 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 2,022,840 Tr a n s f e r o u t ( 2 , 7 5 7 , 6 2 7 ) ( 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 ) (2,065,298) (1,913,379) (2,040,340) 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 2 5 , 7 4 7 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 9 210,000 5,186,247 1,332,500 Ne t c h a n g e i n f u n d b a l a n c e s 1 , 3 1 1 , 9 2 5 $ 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 $ (4,365,078) $ 4,154,278$ 195,713$ 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 . 2 % 7 . 3 % 7 . 6 % 7 . 4 % 7 . 7 % 7 . 6 % 1 2 . 3 % 9 . 7 % 5 . 3 % 3 . 4 % 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 71 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 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 20 1 2 5 , 5 2 4 , 3 9 5 2 , 0 9 8 , 2 6 7 9 1 4 , 8 3 3 8 9 2 , 4 7 4 1 , 7 3 4 , 0 9 5 3 2 0 , 9 2 6 3 6 1 , 3 1 8 4 2 , 5 5 2 1 1 , 8 8 8 , 8 6 0 Re v e n u e s i n c l u d e d i n t h e G e n e r a l a n d E x c i s e T a x F u n d s 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 72 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 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 1 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 8 . 2 6 5 1 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 . 3 7 5 1 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 7 9 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 9 . 1 0 5 9 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 7 . 8 1 6 4 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 . 2 9 2 9 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 0 5 9 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 7 6 2 1 , 2 8 3 , 9 5 3 , 7 6 9 20 1 2 7 0 0 , 8 9 9 , 4 3 1 1 7 , 0 7 2 , 0 6 5 1 , 5 4 3 , 9 9 5 7 1 9 , 5 1 5 , 4 9 1 8 . 7 8 5 5 1 , 2 4 6 , 6 6 7 , 0 1 2 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 . as a percentage 49.30%45.03%43.50%45.07%of Market Value 60.78% 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 Assessed Value 56.58%57.72%56.17%52.68%52.35% 73 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 3 7 . 7 5 0 0 0 . 5 1 5 0 8 . 2 6 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 27.1925 20 0 4 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 27.5155 20 0 5 8 . 2 5 0 0 1 . 1 2 5 1 9 . 3 7 5 1 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 28.1228 20 0 6 8 . 2 5 0 0 0 . 9 2 9 6 9 . 1 7 9 6 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 27.5629 20 0 7 8 . 2 5 0 0 0 . 8 5 5 9 9 . 1 0 5 9 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 26.9197 20 0 8 7 . 1 4 0 0 0 . 6 7 6 4 7 . 8 1 6 4 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 23.9575 20 0 9 7 . 6 3 5 1 0 . 6 5 7 8 8 . 2 9 2 9 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 24.5766 20 1 0 8 . 0 0 0 0 0 . 7 0 5 9 8 . 7 0 5 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 25.2085 20 1 1 8 . 0 0 0 0 0 . 7 7 6 2 8 . 7 7 6 2 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 26.4915 20 1 2 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 25.3140 (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 74 PercentagePercentage Taxableof Total CityTaxableof Total City AssessedTaxableAssessedTaxable Taxpayer Value Rank Value Value Rank Value Northern Trust Bank (Publix)6,900,000$ 10.55%5,567,093$ 10.70% Tropical Chevrolet, Inc.6,897,915 20.55%3,478,279 30.44% Shore Square Investments, LLC6,575,898 30.53%4,059,971 20.51% Florida Power & Light Co.6,237,056 40.50%- 0.00% DVS LLC2,820,926 50.23%- 0.00% Wal Miami LLC2,456,175 60.20%- 0.00% Frances B Everett2,400,000 70.19%- 0.00% Omar Cassola2,298,065 80.18%1,110,798 100.14% Norton L Barchan 2,044,679 90.16%- 0.00% Robert Ader & W1,983,236 100.16%- 0.00% Bujolo, Inc.- 0.00%1,857,565 40.23% George Bennet- 0.00%1,467,858 50.18% Thomas and Sandra Chaille- 0.00%1,466,608 60.18% Bank of America, N.A.- 0.00%1,264,122 70.16% Angelo Napilitano Trust- 0.00%1,223,117 80.15% George and Maria Sirota- 0.00%1,219,317 90.15% Total40,613,950$ 3.26%22,714,728$ 2.71% Tropical Chevrolet, Inc. Source: Miami-Dade County Property Appraiser Office 20122003 MIAMI SHORES VILLAGE, FLORIDA PRINCIPAL PROPERTY TAX PAYERS CURRENT YEAR AND TEN YEARS AGO 75 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 % 20 1 2 5 , 7 5 6 , 1 2 4 5 , 4 6 3 , 5 1 4 9 4 . 9 % 6 0 , 8 8 1 5 , 5 2 4 , 3 9 5 9 6 . 0 % 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 76 Percentage Fiscalof Actual YearGeneralTaxablePercentage EndedObligation LoanValue of of Personal September 30,Bonds Payable Total Property Income 20032,970,000 1,680,000 4,650,000 0.96%0.60% 20047,910,000 1,485,868 9,395,868 1.75%0.32% 20057,750,000 1,405,069 9,155,069 1.53%0.35% 20067,585,000 3,444,879 11,029,879 1.55%0.31% 20077,415,000 3,215,811 10,630,811 1.27%0.34% 20087,235,000 3,438,552 10,673,552 1.11%0.35% 20097,050,000 3,095,362 10,145,362 1.10%0.37% 20106,860,000 2,737,674 9,597,674 1.20%0.24% 20116,665,000 2,358,637 9,023,637 1.25%0.29% 20126,460,000 1,922,581 8,382,581 1.17%0.40% Note: Details regarding the City'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 77 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 C i t y To C i t y 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 ) 2 9 0 , 9 8 8 $ 0 . 3 6 % 1 , 0 5 0 $ 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 ) 1 , 0 0 0 , 1 3 3 0 . 3 6 % 3 , 6 0 9 T o t a l o v e r l a p p i n g d e b t 1 , 2 9 1 , 1 2 1 $ 4 , 6 5 9 Mi a m i S h o r e s V i l l a g e 8 , 3 8 3 1 0 0 . 0 0 % 8 , 3 8 3 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 , 2 9 9 , 5 0 4 $ 1 3 , 0 4 2 $ So u r c e s : (1 ) 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 - B o n d A d m i n i s t r a t i o n D i 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 . 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 2 (i n t h o u s a n d s ) 78 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 2 : As s e s s e d v a l u e 7 1 9 , 5 1 5 , 4 9 1 $ 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 1 , 9 5 1 , 5 4 9 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 8 , 3 8 2 , 5 8 1 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 ( 1 , 9 2 2 , 5 8 1 ) 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 , 4 6 0 , 0 0 0 Le g a l d e b t m a r g i n 6 5 , 4 9 1 , 5 4 9 $ 20 1 2 20 1 1 20 1 0 20 0 9 20 0 8 20 0 7 20 0 6 200520042003 De b t l i m i t 6 5 , 4 9 1 , 5 4 9 $ 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 $ 48,275,567$ 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 , 4 6 0 , 0 0 0 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 7,750,000 7,910,000 2,970,000 Le g a l d e b t m a r g i n 5 9 , 0 3 1 , 5 4 9 $ 5 8 , 5 9 2 , 3 8 2 $ 6 6 , 0 9 4 , 8 8 1 $ 6 4 , 8 8 2 , 3 8 2 $ 8 4 , 8 5 2 , 9 2 1 $ 7 5 , 2 9 8 , 1 5 8 $ 6 3 , 5 7 0 , 2 0 4 $ 51,922,139 $ 45,865,903$ 45,305,567$ 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 9 . 8 6 % 1 0 . 4 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 % 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 79 PersonalPer IncomeCapita Estimated(Thousand ofPersonalUnemployment Year Population (1)Dollars) Income (2)Rate (3) 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% 201110,500274,407 26,134 11.8% 201210,493352,932 33,635 8.7% Sources: (1) State of Florida Department of Revenue (2) Beacon 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 80 PercentagePercentage of Total Countyof Total County Employer Employees Rank Employment Employees Rank Employment Miami-Dade County Public Schools48,571 13.73%45,886 14.24% Miami-Dade County, Florida29,000 22.23%32,000 22.95% Federal Government19,500 31.50%20,100 31.86% Florida State Government17,100 41.31%18,900 41.74% University of Miami16,000 51.23%9,079 60.84% Baptist Health Systems of South FL13,376 61.03%7,000 90.65% Jackson Health System12,571 70.96%11,700 51.08% Publix Super Markets10,800 80.69%0.83% American Airlines9,000 90.69%9,000 70.83% Florida International University8,000 100.61%7,500 80.69% Precision Response Corporation6,000 10 Total Civilian Labor Force Employment1,303,121 1,083,357 Source: The Beacon Council, Miami Florida, Miami Business Profile 20122003 MIAMI SHORES VILLAGE, FLORIDA PRINCIPAL EMPLOYERS LOCATED IN MIAMI-DADE COUNTY CURRENT YEAR AND TEN YEARS AGO 81 Function/Program 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 General government: Administration: Full time9 9 9 9 9 10 11 10 - 10 Part time5 5 - - - - - - - - Finance: Full time5 5 5 4 4 4 5 5 5 5 Part time- - 1 1 1 1 1 1 1 1 Public works: Full time40 40 47 45 44 60 66 55 54 53 Part time- - 1 2 1 2 2 2 2 2 Culture and recreation: Recreation: Full time13 13 13 11 12 12 12 12 12 12 Part time30 30 51 56 48 64 64 64 64 64 Library: Full time3 3 3 3 3 3 4 4 4 4 Part time6 6 7 7 7 7 6 7 7 7 Public safety Police Full time44 44 45 45 43 47 47 44 44 44 Part time3 3 3 3 3 5 5 5 4 4 Total158 158 185 186 175 215 223 209 197 206 Source: Village Finance office Fiscal Year MIAMI SHORES VILLAGE, FLORIDA VILLAGE EMPLOYEES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS 82 COMPLIANCE SECTION 83 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, 2012 which collectively comprise the Village’s basic financial statements, and have issued our report thereon dated March 25, 2013. 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 Management of the Village is responsible for establishing and maintaining effective 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 84 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 25, 2013 85 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, 2012, and have issued our report thereon dated March 25, 2013. 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 25, 2013, 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 86 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, 2012, 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, 2012. 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 25, 2013 87 MIAMI SHORES VILLAGE, FLORIDA SCHEDULE OF FINDINGS AND RESPONSES FISCAL YEAR ENDED SEPTEMBER 30, 2012 PRIOR YEAR FINANCIAL STATEMENT FINDINGS NONE CURRENT YEAR FINANCIAL STATEMENT FINDINGS NONE