2013MIAMI SHORES VILLAGE
A FLORIDA MUNICIPALITY
For the Fiscal Year ended September 30, 2013
Comprehensive Annual
Financial Report
MIAMI SHORES VILLAGE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE
FISCAL YEAR ENDED SEPTEMBER 30, 2013
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 Position 13
Statement of Activities 14
Fund Financial Statements:
Balance Sheet – Governmental Funds 15
Reconciliation of the Balance Sheet to the Statement of Net Position-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 Position – Proprietary Funds 19
Statement of Revenues, Expenses, and Changes in Fund Net Position –
Proprietary Funds 20
Statement of Cash Flows – Proprietary Funds 21
Statement of Fiduciary Net Position- Fiduciary Funds 22
Statement of Changes in Fiduciary Net Position 23
Notes to the Basic Financial Statements 24-48
Required Supplementary Information:
Budgetary Comparison Schedule:
General Fund 49-50
Special Revenue Funds 51
Notes to Budgetary Comparison Schedule 52
Schedule of Funding Progress – Pension Trust Funds 53
Schedule of Employer Contributions – Pension Trust Funds 54
Combining and Individual Financial Statements and Schedules:
Combining Balance Sheet – Nonmajor Governmental Funds 55-56
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances –
Nonmajor Governmental Funds 57-58
Schedules of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual
Nonmajor Governmental Funds 59-61
Internal Service Funds:
Combining Statement of Net Position 62
Combining Statement of Revenues, Expenses and Changes in Net Position 63
Combining Statement of Cash Flows 64
MIAMI SHORES VILLAGE, FLORIDA
TABLE OF CONTENTS
II. FINANCIAL SECTION (Continued)
Fiduciary Funds:
Combining Statement of Fiduciary Net Position – Pension Trust Funds 65
Combining Statement of Changes in Fiduciary Net Position – Pension Trust Funds 66
Statement of Changes in Assets and Liabilities – Agency Fund 67
III. STATISTICAL SECTION (Unaudited)
Net Position by Component 68
Changes in Net Position 69-70
Fund Balances for Governmental Funds
Changes in Fund Balances of Governmental Funds
71
72
General Governmental and Excise Tax Revenues by Source 73
Assessed Value and Actual Value of Taxable Property 74
Property Tax Rates Direct and Overlapping Governments 75
Principal Property Taxpayers – Current Year and Nine Years Ago 76
Operating Property Tax Levies and Collections 77
Ratios of Outstanding Debt By Type 78
Direct and Overlapping Governmental Activities Debt 79
Legal Debt Margin Information 80
Demographic and Economic Statistics 81
Principal Employers Located in Miami Dade County – Current Year and Nine Years Ago 82
Village Employees by Function/Program 83
IV. COMPLIANCE SECTION
Independent Auditors’ Report on Internal Controls over Financial Reporting 84-85
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 86-87
State of Florida
INTRODUCTORY SECTION
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Miami Shores Village
Finance Department
10050 N.E.2nd Avenue
Miami Shores, Florida 33138
Tel: (305) 795.2207
Fax: (305) 758.7849
June 6, 2014
The Mayor and Members of the Village Council
10050 Northeast Second Avenue
Miami Shores, Florida 33138-2382 Subject: FY 2012-13
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, 2013. 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 unmodified opinion that this report fairly represents the financial position of the Village
in conformity with GAAP. Their audit was conducted 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, 2013 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 unmodified opinion that the financial statements of Miami Shores Village for the fiscal
year ended September 30, 2013 are fairly presented in conformity with generally accepted accounting principles (GAAP).
The contents of the CAFR have been influenced by compliance with GASB pronouncements, including Statement 34 that
requires the preparation of government-wide financial statements on a full accrual basis of accounting for all funds as well
as Management’s Discussion and Analysis (MD&A). The MD&A can be found immediately following the independent
auditors’ report.
FY 2012-13 Financial Report June 6, 2014
-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; new construction of $59 thousand for fiscal
year 2013 valuation and population increasing only 2.6% from 2004-2013. 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, 2013, 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 increase during the 2013 fiscal year with
an increase in assessed values of 2.2% for fiscal year 2014 and new construction of $520 thousand. 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 all of these efforts, the general fund unassigned fund
FY 2012-13 Financial Report June 6, 2014
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balance for fiscal year 2013 remained constant at $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.
In August of 2012, Moody’s Investors Service upgraded to Aa3 from A1 the Village’s General Obligation Bond Rating,
which the Village continues to maintain. 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,
Mayor Herta Holly
Vice Mayor Jesse Walters
Councilman
Hunt Davis
Councilwoman
Ivonne Ledesma
Councilman
Jim McCoy
MIAMI SHORES VILLAGE, FLORIDA
LIST OF ELECTED OFFICIALS
SEPTEMBER 30, 2013
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MIAMI SHORES VILLAGE, FLORIDA
LIST OF APPOINTED OFFICIALS
SEPTEMBER 30, 2013
APPOINTED OFFICIALS
Village Manager....................................................................................................Thomas J. Benton
Village Clerk .............................................................................................. Barbara A. Estep, MMC
Village Attorney....................................................................................................... Richard Sarafan
DEPARTMENT HEADS
Building Director ...................................................................................................... Ismael Naranjo
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
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MIAMI SHORES VILLAGE, FLORIDA
ORGANIZATION CHART
SEPTEMBER 30, 2013
MAYOR & COUNCIL
MAYOR - HERTA HOLLY
VICE MAYOR - JESSE WALTERS
COUNCILMAN - HUNT DAVIS
COUNCILWOMAN - IVONNE LEDESMA
COUNCILMAN - JIM MCCOY
VILLAGE CLERK
BARBARA A. ESTEP, MMC
VILLAGE ATTORNEY
RICHARD SARAFAN, ESQ.
VILLAGE MANAGER
THOMAS J. BENTON
BUILDING
DIRECTOR
ISMAEL NARANJO
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
Report on the Financial Statements
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, 2013, and the rel ated notes to the financial statements, which
collectively comprise the Village’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America; this includes the design, implementation,
and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are
free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in
accordance with auditing standards generally accepted in the United States 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 from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the over all presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, i n all material respects, the respective
financial position of the governmental activities, the business -type activities, each major fund, and the aggregate
remaining fund information of the Village, as of September 30, 2013, and the respective changes in financial position
and cash flows for the fiscal year then ended in accordance with accounting principles generally accepted in the
United States of America.
4649 PONCE DE LEON BLVD.
SUITE 404
CORAL GABLES, FL 33146
TEL: 305-662-7272
FAX: 305-662-4266
ACC-CPA.COM
2
Emphasis of a Matter
As discussed in Note I to the financial statements, the Village implemented Governmental Accounting Standards
Board (GASB) Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of
Resources, and Net Position as of October 1, 2012. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion
and Analysis, Budgetary Comparison Schedule, and Schedules of Funding Progress and Employer Contributions on
pages 3-12 and 48-53, respectively 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 au diting 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 b asic 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 evidenc e to
express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the Village’s basic financial statements. The introductory section, combining and individual nonmajor fund financial
statements and budgetary comparison schedules and statistical section, are presented for purposes of additional
analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and budgetary comparison schedules are the
responsibility of management and were derived from and relate directly to the underlying accounting and other
records used to prepare the basic financial statements. Such info rmation has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records use d to prepare
the basic financial statements or to the basic financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining
and individual nonmajor fund financial statements and budgetary comparison schedules are fairly stated in all
material respects in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the
basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 6, 2014, 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 ma tters. 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 internal control over financial reporting or on complian ce. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering the Village’s
internal control over financial reporting and compliance.
Alberni Caballero & Company, LLP
Alberni Caballero & Company, LLP
Coral Gables, Florida
June 6, 2014
MANAGEMENT’S DISCUSSION AND ANALYSIS
(Required Supplementary Information)
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Management’s Discussion and Analysis
As management of Miami Shores Village, we offer readers of the Village’s financial statements this narrative overview and
analysis of the financial activities of Miami Shores Village for the fiscal year ended September 30, 2013.
Financial Highlights for Fiscal Year 2013
At September 30, 2013, the Miami Shores Village assets exceeded its liabilities by $33.8 million (net
position). Of this amount, $15.7 million was invested in capital assets. Additionally, $6 million was
restricted by law, agreements, and debt covenants or for capital projects. The Village had unrestricted net
position of $12 million at September 30, 2013 a decrease of $251 thousand or 2.1% as compared with the
prior year.
During the fiscal year 2013 net position increased by $571 thousand. Of this increase, $330 thousand was in
governmental activities and the remaining increase of $241 thousand was in business-type activities.
At September 30, 2013, the Miami Shores Village’s governmental funds had fund balances totaling $14.6
million. Of the total fund balance, approximately $7.9 million or 54% was unassigned and $658 thousand or
4.5% was committed for future capital projects and encumbrances. The restricted fund balance of
approximately $6 million, or 41.3%, is related to funds restricted by the contributing agency. The
nonspendable fund balance of approximately $32 thousand, or 0.2%, is related to prepaid items. The net
change in fund balances during the year was a decrease of $155 thousand.
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 statement s. 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 Position presents information on all of the assets and deferred outflows and liabilities and deferred inflows
of Miami Shores Village, with the difference reported as net position. Over time, increases or decreases in net position 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 position changed during the most recent
fiscal year. All changes in net position 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
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near-term cash flow and financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to
compare the information presented for governmental funds with similar information presented for governmental activities in the
government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s
near-term financing decisions and the impact on short term cash flow requirements to meet basic on-going operations. Both the
governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balance
provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
Miami Shores Village maintains twelve (12) 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 Stormwater 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 separa te 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 propriet ary
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 49 to 54 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. Combining and individual fund statements and
schedules may be found on pages 55 to 67 of this report.
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Government-wide Financial Analysis
The difference between a government’s assets and deferred outflows and its liabilities and deferred inflows is its net position.
The Village’s net position is summarized below:
Table 1
Miami Shores Village
Summary of Net Position
(in thousands)
Total
Total primary percentage
Governmental activities Business- Business-type activities government Change
2013 2012 2013 2012 2013 2012 2012-2013
Current and other assets $ 17,911 $ 17,780 $ 3,518 $ 3,602 $ 21,429 $ 21,382 0.2%
Capital assets 21,388 21,526 2,253 1,922 23,641 23,448 0.8%
Total assets 39,299 39,306 5,771 5,524 45,070 44,830 0.5%
Long-term liabilities
outstanding 9,665 9,959 190 171 9,840 10,130 -2.9%
Other liabilities 716 759 744 743 1,460 1,502 -2.8%
Total liabilities 10,381 10,718 934 914 11,300 11,632 -2.8%
Net investment in capital
assets, 13,445 13,160 2,253 1,922 15,698 15,082 4.0%
Restricted 6,042 5,835 - - 6,042 5,835 3.5%
Unrestricted 9,430 9,593 2,584 2,688 12,014 12,281 -2.2%
Total net position $ 28,918 $ 28,588 $ 4,837 $ 4,610 $ 33,754 $ 33,869 -0.3%
Net position may be used to assess the financial position of the Village. The Village’s combined net position as of September
30, 2013 were $33.8 million. Approximately 46.5%, or $15.7 million, of the Village’s net position represent net investment in
capital assets. These assets include land, buildings, machinery and equipment, and infrastructure and are not available for future
spending. Additionally, $6 million are restricted net position and are subject to external restrictions on how they may be spent.
At September 30, 2013, Miami Shores Village had unrestricted net position of $12 million. At the end of the current fiscal year,
Miami Shores Village is able to report positive balances in all three categories of net position, 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 Position
(in thousands)
Total
Total primary percentage
Governmental activities Business-Business-type activities government Change
2013 2012 2013 2012 2013 2012 2012-2013
Revenues:
Program revenues:
Charges for services $ 4,613 $ 5,417 $ 2,916 $ 3,018 $7,529 $8,435 -10.7%
Operating grants & Contributions 87 170 - - 87 170 -48.8%
Capital grants and Contributions 36 48 - - 36 48 -25.0%
General Revenues:
Property taxes 6,255 6,078 - - 6,255 6,078 2.9%
Other taxes 2,046 2,098 - - 2,046 2,098 -2.5%
Intergovernmental revenues,
unrestricted 930 918 - - 930 918 1.3%
Interest earnings - unrestricted 32 61 6 2 38 63 -39.7%
Miscellaneous 415 493 - - 415 493 -15.8%
Total revenues 14,414 15,283 2,922 3,020 17,336 18,303 -5.3%
Expenses:
General government 2,419 2,337 - - 2,419 2,337 -4.0%
Public safety 6,425 5,509 - - 6,425 5,509 17.0%
Highways Streets 2,385 2,347 - - 2,385 2,347 1.6%
Sanitation / Stormwater - - 2,300 2,384 2,300 2,384 -3.5%
Culture & recreation 2,817 2,584 - - 2,817 2,584 9.0%
Interest on Long-term Debt 433 425 - - 433 425 1.9%
Total expenses 14,479 13,202 2,300 2,384 16,779 15,586 7.7%
Increase in net position before
Transfers (65) 2,081 622 636 557 2,717 -79.5%
Transfers 395 335 (395) (335) - - -
Increase in net position 330 2,416 227 301 557 2,717 -79.5%
Beginning net position 28,588 26,172 4,610 4,309 33,198 30,481 8.9%
Ending net position $ 28,917 $ 28,588 $ 4,837 $ 4,610 $ 33,754 $ 33,198 10.7%
Ending net position increased 10.7% during FY2013. The increase in net position was approximately 80% less than FY2012.
This was due to a reduction in revenues of approximately $1 million and an increase in expenses of approximately $1.7 million.
The decrease in revenues was due to a decrease in building permits and Country Club rental income. The increase in expenses
was attributable to additional recreation programs offset by recreation revenue and the completion of the Cops Grant program
which increased public safety expenses.
Continued on next page
-7-
Figure A-1
Expenses and Program Revenues – Governmental Activities
For the Fiscal Year Ended September 30, 2013
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
Revenues Expenses
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, 2013
Other taxes
17%
Charges for services
44%
Property Taxes
36%Investment earnings
0%
Other
2%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 position of business-type activities increased by approximately $227 thousand, a $74 thousand decrease compared to
FY2012. The decrease was due to an increase in management fees. 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, 2013
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 $14.6 million, a $155 thousand decrease compared to FY2012. 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 $660 thousand, 2) restricted for funds which
restrict how the funds may be spent of $6 million and 3) nonspendable for funds used to account for amounts which cannot
currently be spent, such as prepaid expenses of $32 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 $7.9 million in the prior year. Committed fund balance
decreased from $78 thousand in the prior year to $46 thousand for the current fiscal year. The decrease was due to a decrease in
encumbrances relating to ongoing projects which had not been completed as of last year-end.
The Village's General Fund balance increased by $5 thousand during the fiscal year. Although deficit spending had been
anticipated, the Village was able to maintain the fund balance by increasing revenues associated with new programs in the
recreation department, increased code enforcement collections, and by reducing expenditures due to tight spending policies and
maintaining vacant positions wherever possible.
0
1000000
2000000
3000000
Sanitation Stormwater
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 $588
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 $128 thousand during the fiscal
year. 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 2013, the fund balance decreased $58 thousand dollars for a balance of $1.2
million.
Proprietary funds. The Village’s proprietary funds provide the same type of information found in the government -wide
financial statements, but in more detail.
Unrestricted net position of the Sanitation Fund at the end of the year totaled $1.8 million, a $187 thousand decrease in
net position values. Unrestricted net position will continue to be used to fund future purchases of capital assets.
Unrestricted net position of the Stormwater Fund at the end of the year totaled $738 thousand, an $83 thousand increase
in net position values. Unrestricted net position 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 f iscal 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 three 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 $81 thousand below final budgeted amounts. Savings were realized in general government,
$20 thousand, public safety, $32 thousand, and culture and recreation, $27 thousand. These savings in general government
costs and various departmental costs were due to staff vacancies and conservative spending.
The fiscal year 2013 final amended budget was $12.8 million, an increase of 0.6 % over the original General Fund budget of
$12.7 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 1.2%. The final Adopted Budget is balanced with revenues of $10 million and $2.8
million in operating transfers from Excise Tax, Sanitation Fund and Stormwater Fund. The original Adopted Budget was
balanced by an additional $766 thousand from fund balance. However, unanticipated revenues of $1million resulted in a
decrease in the use of fund balance. Unanticipated revenues included $100 thousand in additional building permit fees due to an
increase in building, $400 thousand in recreation fees due to the addition of programs , $130 thousand in public safety due to
Police off duty pay, and $300 thousand in code enforcement due to increased collections. Differences between the original
budget and the final amended budget increased appropriations by $80 thousand in recreation due to the addition of new
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, 2013 amounts to $23.6 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, 2013 and 2012
(net of depreciation, in thousands)
Governmental Activities Business-Type Activities Total
Classification 2013 2012 2013 2012 2013 2012
Land $ 2,358,437 $ 2,358,437 $ - $ - $ 2,358,437 $ 2,358,437
Construction in progress 552,096 - - - 552,096 -
Building 9,342,630 9,567,542 - - 9,342,630 9,567,542
Land Improvement 1,479,862 1,654,231 - - 1,479,862 1,654,231
Infrastructure 6,323,626 6,725,496 1,414,321 1,473,266 7,737,947 8,198,762
Machinery and equipment 1,331,426 1,220,019 838,390 448,349 2,169,816 1,668,368
Totals $21,388,077
$21,525,725 $2,252,711 $1,921,615 $23,640,788 $23,447,340
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, 2013, Miami Shores Village had $9.9 million in long-term liabilities, which are
summarized in the schedule below. During FY2013, the Village refinanced the 1999 General Obligation Bond and the Note
Payable at significantly reduced interest rates. Additional information on the Village’s long-term debt may be found in Note VI
on Pages 35 to 37 of this report.
Miami Shores Village
Outstanding Long-term Liabilities as of September 30, 2013 and 2012
Governmental Activities Business-type activities Total Primary Government
2013 2012 2013 2012 2013 2012
General obligation bonds $ 6,298,000 $ 6,460,000 $ - $ - $ 6,298,000 $ 6,460,000
Other( issuance discount) - (71,050) - - - (71,050)
Other debt 1,645,000 1,976,591 - - 1,645,000 1,976,591
7,943,000 8,365,541 - - 7,943,000 8,365,541
OPEB liability 449,563 354,474 79,824 62,940 529,387 417,414
Estimated insurance claims payable 464,136 464,136 - - 464,136 464,136
Compensated absences 807,939 774,628 109,951 108,201 917,890 882,829
Total $ 9,664,638 $ 9,958,779 $189,775 $171,141 9,854,413 10,129,920
-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 restricte d 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 2014 reflected an increase of $117 thousand, precipitated by an increase in property values
of $27 million or 3% in property values as compared with 2013. 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 2014 showed an increase of $27 million, increasing property tax revenues by $117 thousand.
Even though property values appear to be increasing, prior year reductions in property values resulted in budgeting $532
thousand of fund balance surplus in 2014 to make up the loss of revenues. During the current fiscal year, unassigned fund
balance in the General Fund was $7.9 million, the same as the unreserved fund balance in 2013 of $7.9 million. This $7.9
million is approximately equal to 7 months of General Fund operating expenditures. Even though fair market property values
are expected to increase, assessed property values are limited by the “Save Our Homes” benefits. This limits the increase in
property tax revenue even when property values are increasing. Expenditures such as payroll and personnel benefits will
continue to increase. 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.
-12-
General Fund Unrestricted and Unassigned Surplus
For the Fiscal Years ended September 30, 2004-2013
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
8000000
2004200520062007200820092010201120122013
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, 2004-2013
0
2
4
6
8
10
2004200520062007200820092010201120122013
Operating Millage Debt Service Millage
Fiscal year 2014 budgeted expenditures and transfers are expected to increase $807 thousand compared with fiscal year 2013.
This increase in expenditures is required to meet the ongoing needs of the Village and to fund capital improvement projects.
Requests for Information
This financial report is designed to provide a general overview of Miami Shores Village s’ finances to our citizens, taxpayers,
customers, investors, creditors, and others with an interest in the Villages’ finances. Questions concerning this report or
requests for additional financial information should be directed to the Finance Director, Holly Hugdahl, CPA, CGMA.
MIAMI SHORES VILLAGE
Finance Department
10050 Northeast Second Avenue
Miami Shores, Florida 33138-2382
BASIC FINANCIAL STATEMENTS
Business-
Governmental Type
Activities Activities Total
ASSETS
Cash and cash equivalents 15,862,653$ 2,764,308$ 18,626,961$
Investments 294,098 - 294,098
Accounts receivable - net 1,193,522 680,970 1,874,492
Prepaid items 184,947 - 184,947
Inventories 34,907 72,862 107,769
Net pension asset 340,650 - 340,650
Capital assets not being depreciated 2,910,533 - 2,910,533
Capital assets being depreciated, net 18,477,544 2,252,711 20,730,255
Total assets 39,298,854 5,770,851 45,069,705
LIABILITIES
Accounts payable and accrued liabilities 543,387 17,057 560,444
Unearned revenues 141,233 727,479 868,712
Accrued interest payable 31,916 - 31,916
Noncurrent liabilities:
The amount due in one year 613,584 27,488 641,072
The amount due in more than one year 9,051,054 162,286 9,213,340
Total liabilities 10,381,174 934,310 11,315,484
NET POSITION
Net investment in capital assets 13,445,077 2,252,711 15,697,788
Restricted for:
Public safety 1,931,721 - 1,931,721
Transportation 1,799,811 - 1,799,811
Debt service 1,083,261 - 1,083,261
Charter school 956,986 - 956,986
Recreation 270,303 - 270,303
Unrestricted 9,430,521 2,583,830 12,014,351
Total net position 28,917,680$ 4,836,541$ 33,754,221$
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF NET POSITION
SEPTEMBER 30, 2013
See notes to basic financial statements
13
Operating Capital Business-
Charges for Grants and Grants and Governmental Type
Expenses Services Contributions Contributions Activities Activities Total
Functions/programs
Governmental activities:
General government 2,418,939$ 841,572$ -$ -$ (1,577,367)$ -$ (1,577,367)$
Public safety 6,425,432 1,553,168 87,368 (4,784,896) - (4,784,896)
Public works 2,385,338 843,218 - 35,564 (1,506,556) - (1,506,556)
Culture and recreation 2,816,882 1,375,506 - - (1,441,376) - (1,441,376)
Interest on long-term debt 432,997 - - - (432,997) - (432,997)
Total governmental activities 14,479,587 4,613,464 87,368 35,564 (9,743,191) - (9,743,191)
Business-type activities:
Sanitation 2,119,723 2,667,843 - - - 548,120 548,120
Stormwater 180,702 248,132 - - - 67,430 67,430
Total business activities 2,300,425 2,915,975 - - - 615,550 615,550
Total 16,780,012$ 7,529,439$ 87,368$ 35,564$ (9,743,191)$ 615,550$ (9,127,641)$
General revenues:
Property taxes, levied for general purpose 6,255,087$ -$ 6,255,087$
Public service taxes 2,045,767 - 2,045,767
Intergovernmental (unrestricted)929,762 - 929,762
Investment income (unrestricted)32,015 5,994 38,009
Miscellaneous 415,330 - 415,330
Transfers 395,000 (395,000) -
Total general revenues 10,072,961 (389,006) 9,683,955
Change in net position 329,770 226,544 556,314
Net position, beginning 28,587,910 4,609,997 33,197,907
Net position, ending 28,917,680$ 4,836,541$ 33,754,221$
MIAMI SHORES VILLAGE, FLORIDA
FISCAL YEAR ENDED SEPTEMBER 30, 2013
Program Revenues
Net (Expense) Revenue and
Changes in Net Position
STATEMENT OF ACTIVITIES
See notes to basic financial statements
14
Other Total
Excise Police General Governmental Governmental
General Tax Forfeiture Trust Funds Funds
ASSETS
Cash and cash equivalents 7,749,344$ 262,865$ 1,879,646$ 1,342,401$ 2,816,695$ 14,050,951$
Investments 294,098 - - - - 294,098
Accounts receivable - net 417,056 325,241 21,424 - 157,302 921,023
Due from other funds 35,564 - - - - 35,564
Prepaid items 32,305 - - - - 32,305
Total assets 8,528,367 588,106 1,901,070 1,342,401 2,973,997 15,333,941
LIABILITIES
Accounts payable and accrued liabilities 423,921 - - 115,112 1,050 540,083
Due to other funds - - - - 35,564 35,564
Unearned revenues 141,233 - - - - 141,233
Total liabilities 565,154 - - 115,112 36,614 716,880
FUND BALANCES
Nonspendable 32,305 - - - - 32,305
Restricted - 588,106 1,901,070 1,227,289 2,325,617 6,042,082
Committed 45,947 - - - 611,766 657,713
Unassigned 7,884,961 - - - - 7,884,961
Total fund balances 7,963,213 588,106 1,901,070 1,227,289 2,937,383 14,617,061
Total liabilities and fund balances 8,528,367$ 588,106$ 1,901,070$ 1,342,401$ 2,973,997$ 15,333,941$
MIAMI SHORES VILLAGE, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2013
Major Funds
See notes to basic financial statements
15
Fund balances - total government funds (Page 15)14,617,061$
Amounts reported for governmental activities in the statement
of net position 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 37,545,899
Less accumulated depreciation (18,088,648)
Net pension asset 340,650
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 (7,943,000)$
OPEB liability (449,563)
Claims payable (124,136)
Accrued interest payable (31,916)
Compensated absences (792,095) (9,340,710)
Net position of internal service funds are not reported with governmental funds 3,843,428
Net position of governmental activities (Page 13)28,917,680$
SEPTEMBER 30, 2013
MIAMI SHORES VILLAGE, FLORIDA
RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION
GOVERNMENTAL FUNDS
See notes to basic financial statements
16
Other Total
Excise Police General Governmental Governmental
General Tax Forfeiture Trust Funds Funds
Revenues:
Property taxes 5,719,016$ -$ -$ -$ 536,071$ 6,255,087$
Public service taxes - 2,045,767 - - - 2,045,767
Other taxes - - - - 753,870 753,870
Licenses and permits 841,572 - - - - 841,572
Intergovernmental revenues 964,755 - - - 87,939 1,052,694
Charges for services 1,941,090 - - - - 1,941,090
Fines and forfeitures 609,029 - 245,235 - 4,489 858,753
Miscellaneous 276,811 - 61,498 77,021 - 415,330
Interest income 18,746 - 3,849 3,258 6,162 32,015
Total revenues 10,371,019 2,045,767 310,582 80,279 1,388,531 14,196,178
Expenditures:
Current:
General government 2,321,715 - - 21,685 156,874 2,500,274
Public safety 6,027,279 - 84,663 - - 6,111,942
Public Works 1,348,918 - - - 313,171 1,662,089
Culture and recreation 2,412,610 - - 16,179 - 2,428,789
Capital outlay 8,176 - 97,984 17,027 992,444 1,115,631
Debt service:
Principal - - - - 4,362,580 4,362,580
Interest - - - - 432,997 432,997
Total expenditures 12,118,698 - 182,647 54,891 6,258,066 18,614,302
(Deficiency) excess of revenues
over expenditures before
other financing sources (uses)(1,747,679) 2,045,767 127,935 25,388 (4,869,535) (4,418,124)
Other financing sources (uses):
Bond proceeds - - - - 3,923,000 3,923,000
Transfers (out)(617,398)(1,745,605)- (85,377) (239,800) (2,688,180)
Transfers in 2,370,374 - - 1,706 656,400 3,028,480
Total other financing sources (uses)1,752,976 (1,745,605) - (83,671) 4,339,600 4,263,300
Net change in fund balances 5,297 300,162 127,935 (58,283) (529,935) (154,824)
Fund balances - beginning 7,957,916 287,944 1,773,135 1,285,572 3,467,318 14,771,885
Fund balances - ending 7,963,213$ 588,106$ 1,901,070$ 1,227,289$ 2,937,383$ 14,617,061$
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2013
Major Funds
See notes to basic financial statements
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)(154,824)$
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 1,115,631$
Less current year depreciation (1,278,006)
Net adjustment (162,375)
The net effect of various transactions involving capital assets (i.e., sales, trade-ins, and
donations) is to increase (decrease) net position.
Capital outlays not meeting threshold for capitalization 10,492
Other 28,593
Net adjustments 39,085
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 position.
Bond proceeds (3,923,000)
Principal payments 4,362,580
Amortization of issuance costs, premiums and discounts 71,050 510,630
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 (120,146)
Change in compensated absences (33,311)
Change in OPEB liability (95,089)
Change in accrued interest payable 72,921
Allocation of internal service funds' net income 272,879 97,254
Change in net position of governmental activities (Page 14)329,770$
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
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 -
Internal
Service
ASSETS Sanitation Stormwater Total Funds
Current assets:
Cash and cash equivalents 1,987,750$ 776,558$ 2,764,308$ 1,811,702$
Accounts receivable - net 639,068 41,902 680,970 272,499
Inventories 72,862 - 72,862 34,907
Prepaid items - - - 152,642
Total current assets 2,699,680 818,460 3,518,140 2,271,750
Capital assets:
Capital assets not being depreciated - - - 7,127
Capital assets being depreciated, net 838,390 1,414,321 2,252,711 1,923,699
Total noncurrent assets 838,390 1,414,321 2,252,711 1,930,826
Total assets 3,538,070 2,232,781 5,770,851 4,202,576
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 15,558 1,499 17,057 3,304
Unearned revenues 664,258 63,221 727,479 -
Compensated absences 25,666 1,822 27,488 3,961
Total current liabilities 705,482 66,542 772,024 7,265
Non-current liabilities:
Compensated absences 76,996 5,466 82,462 11,883
OPEB liability 70,955 8,869 79,824 -
Claims payable - - - 340,000
Total noncurrent liabilities 147,951 14,335 162,286 351,883
Total liabilities 853,433 80,877 934,310 359,148
NET POSITION
Net investment in capital assets 838,390 1,414,321 2,252,711 1,930,826
Unrestricted 1,846,247 737,583 2,583,830 1,912,602
Total net position 2,684,637$ 2,151,904$ 4,836,541$ 3,843,428$
Enterprise Funds
Business-type Activities -
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2013
See notes to basic financial statements
19
Governmental
Activities -
Internal
Service
Sanitation Stormwater Total Funds
Operating revenues:
Charges for services 2,667,843$ 248,132$ 2,915,975$ 1,939,778$
Operating expenses:
Administrative and general 743,824 21,993 765,817 720,945
Personnel expenses 786,952 81,110 868,062 156,271
Depreciation 59,756 58,945 118,701 255,831
Contractual services 529,191 18,654 547,845 -
Insurance premiums and claims - - - 662,331
Total operating expenses 2,119,723 180,702 2,300,425 1,795,378
Operating income 548,120 67,430 615,550 144,400
Non-operating revenues (expenses):
Interest income 4,817 1,177 5,994 2,654
Interest expense - - - (616)
Total non-operating revenues (expenses)4,817 1,177 5,994 2,038
Income before transfers and contributions 552,937 68,607 621,544 146,438
Transfers in (out)(350,000) (45,000) (395,000) 54,700
Contributions - - - 71,741
Change in net position 202,937 23,607 226,544 272,879
Total net position, beginning 2,481,700 2,128,297 4,609,997 3,570,549
Total net position, ending 2,684,637$ 2,151,904$ 4,836,541$ 3,843,428$
Enterprise Funds
Business-type Activities -
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2013
See notes to basic financial statements.
20
Governmental
Activities-
Internal
Service
Sanitation Stormwater Total Funds
Cash flows from operating activities:
Cash received from customers, governments and other funds 2,770,209$ 259,551$ 3,029,760$ 1,813,918$
Cash paid to suppliers (1,371,213) (53,003) (1,424,216) (1,410,689)
Cash paid for employees (655,868) (65,590) (721,458) (129,197)
Net cash provided by operating activities 743,128 140,958 884,086 274,032
Cash flows from non-capital financing activities:
Transfers in - - - 54,700
Transfers out (350,000) (45,000) (395,000) -
Net cash (used in) non-capital financing activities (350,000) (45,000) (395,000) 54,700
Cash flows from capital related financing activities:
Acquisition and construction of fixed assets (449,797) - (449,797) (25,269)
Principal retirements of capital debt - - - (54,010)
Interest paid on capital debt - - - (616)
Net cash (used in) capital and related financing activities (449,797) - (449,797) (79,895)
Cash flows from investing activities:
Interest and other income 4,817 1,177 5,994 2,654
Net cash provided by investing activities 4,817 1,177 5,994 2,654
Net increase (decrease) in cash and cash equivalents (51,852) 97,135 45,283 251,491
Cash and cash equivalents, October 1 2,039,602 679,423 2,719,025 1,560,211
Cash and cash equivalents, September 30 1,987,750$ 776,558$ 2,764,308$ 1,811,702$
Reconciliation of operating income to net cash
provided by operating activities:
Operating income 548,120$ 67,430$ 615,550$ 144,400$
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation 59,756 58,945 118,701 255,831
Change in assets and liabilities:
(Increase) decrease in:
Accounts receivable 102,366 11,419 113,785 (125,860)
Inventories 15,816 - 15,816 7,229
Prepaid items - - - (6,145)
Increase (decrease) in:
Accounts payable and accrued liabilities 2,159 189 2,348 935
Claims payable - - - -
Compensated absences 1,021 727 1,748 (2,358)
OPEB liability 15,008 1,876 16,884 -
Unearned revenues (1,118) 372 (746) -
Total adjustments 195,008 73,528 268,536 129,632
Net cash provided by operating activities 743,128$ 140,958$ 884,086$ 274,032$
Enterprise Funds
Business-type Activities -
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2013
See notes to basic financial statements
21
Pension Private
Trust Purpose
Funds Trust Agency
ASSETS
Cash and cash equivalents 3,026,462$ 1,665,603$ 167,431$
Receivables:
Accrued interest and dividends 54,142 - -
Total receivables 54,142 - -
Investments, at fair value
U.S. Government securities 1,599,529 - -
Municipal bonds 321,703
Corporate bonds 5,715,352 - -
Mutual funds - equity 7,710,790 - -
Common stocks 9,712,142 - -
Total investments 25,059,516 - -
Total assets 28,140,120 1,665,603 167,431
LIABILITIES
DROP liability 775,806 - -
Other liabilities - - 167,431
Total liabilities 775,806 - -
NET POSITION
Net position restricted for pension benefits 27,364,314$ 1,665,603$ 167,431$
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
SEPTEMBER 30, 2013
See notes to basic financial statements
22
Pension Private
Trust Purpose
Funds Trust
ADDITIONS
Contributions:
Employer 1,475,000$ -$
Employees 400,652 -
Total contributions 1,875,652 -
Investment income:
Unrealized gains 2,866,381 -
Realized gains 227,661 -
Interest and dividend income 524,932 4,487
Total investment income 3,618,974 4,487
Less investment expenses 254,022 -
Net investment income 3,364,952 4,487
Total additions 5,240,604 4,487
DEDUCTIONS
Benefits paid 1,379,972 -
Distribution to charter school - 50,000
Total deductions 1,379,972 50,000
Net increase (decrease)3,860,632 (45,513)
Net position
Beginning of year 23,503,682 1,711,116
End of year 27,364,314$ 1,665,603$
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
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, 2013
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.
As required by generally accepted accounting principles, these basic financial statements present the reporting
entity of the Village. Component units are legally separate entities for which the government is considered to be
financially accountable and for which the nature and significance of their relationship with the primary
government are such that exclusion would cause the Village’s combined financial statements to be misleading or
incomplete. The primary government is considered financially accountable if it appoints a voting majority of an
organization’s governing body and 1) it is able to impose its will on the organization or 2) there is a potential for
the organization to provide specific financial benefit to or impose specific financial burden on the Board.
Additionally, the primary government is required to consider other organizations for which the nature and
significance of their relationship with the primary government are such that exclusion would cause the reporting
entity financial statements to be misleading or incomplete. Based upon the application of these criteria, there
were no organizations which met the criteria described above.
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 position and the statement of changes in
net position) report information on all of the nonfiduciary activities of the Village. For the most part, the effect of
interfund activity has been removed from these statements. Governmental activities, which normally are
supported by taxes and intergovernmental revenues, are reported separately from business-type activities,
which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment
are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or
segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly
benefit from goods, services, or privileges provided by a given function or segment and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular function or
segment. Taxes and other items not properly included among program revenues are reported instead as
general revenues.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even
though the latter are excluded from the government-wide financial statements. Major individual governmental
funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
All remaining non-major governmental funds are aggregated and reported as other governmental or other
proprietary funds.
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C. Measurement Focus, Basis of Accounting and Basis of Presentation
The government-wide financial statements are reported using the economic resources measurement focus and
the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues
are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the
related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and
similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider hav e
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 in sufficient 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
capaVillage.
The financial statements of the Village have been prepared in accordance with generally accepted accounting
principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is
the standard setting body for governmental accounting and financial reporting. The financial statements of the
Village follow the guidance of GASB Statement No. 62, Codification of Accounting and Financial Reporting
Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements for both the government
wide and proprietary fund financial statements. Governments also have the option of following subsequent FASB
pronouncements for their business-type activities and enterprise funds subject to this same limitation. The
Village has elected not to follow subsequent FASB 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 rep orted 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.
Implementation of Governmental Accounting Standards Board Statements
During the fiscal year ended September 30, 2013, the Village implemented GASB Statement No. 63, Financial
Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources and Net Position. This statement
provides financial reporting guidance for deferred outflows of resources and deferred inflows of resources. It
further identifies net position as the residual of all other elements presented in a statement of net position.
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
27
(depreciation) in fair value of investments” in plan net position. 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.
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 bet ween 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 – in both, the
government-wide and fund financial statements – as prepaid items by recording an asset for the prepaid amount
and recognizing the expenditure in the year such item is consumed (consumption method). 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, 2013 was 8.7500 mills ($8.7500 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 13-14 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, 2013, the Village recorded a net pension asset related to both plans in its government-wide
statement of net position. 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 position. 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 Position
Total equity as of September 30, 2013, is classified into three components of net position:
Net investment in capital assets — 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 position — This category consists of net position 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 position — This category includes all of the remaining net position that do not meet
the definition of the other two categories.
30
Q. Fund Balance
As of September 30, 2013, 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. Both ordinances are equally binding. 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 — Assigned fund balances are amounts that are constrained by the Village's intent to be
used for specific purposes, but are neither restricted nor committed. Intent is established by the Village
Council who has the authority to assign, modify or rescind amounts to be used for specific purposes.
This is delegated to the Village Manager by the Council. This balance includes (a) all remaining
amounts that are reported in governmental funds (other than the General Fund) that are not classified
as nonspendable, restricted, or committed, and (b) amounts in the General Fund that are intended to
be used for a specific purpose. Specific amounts that are not restricted or committed in a special
revenue or capital projects fund are assigned for the purposes in accordance with the nature of their
fund type, Assignment within the General Fund conveys that the intended use of those amounts is for a
specific purpose that is narrower than the general purposes of the Village itself.
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.
31
Other Total
ExcisePoliceGeneralGovernmentalGovernmental
General Tax Forfeiture Trust Funds Funds
Fund Balances:
Nonspendable:
Prepaids 32,305$ -$ -$ -$ -$ 32,305$
Restricted:
Transportation - 588,106 - - 1,211,705 1,799,811
Library - - - 98,425 - 98,425
Recreation - - - 92,237 13,456 105,693
Buildings - - - 79,641 - 79,641
Charter School - - - 956,986 - 956,986
Public Safety - - 1,901,070 - 17,195 1,918,265
Debt service - - - - 1,083,261 1,083,261
Committed:
Encumbrances 45,947 - - - 102,302 148,249
Assigned:- - - - 509,464 509,464
Unassigned:7,884,961 - - - - 7,884,961
Total Fund Balances 7,963,213$ 588,106$ 1,901,070$ 1,227,289$ 2,937,383$ 14,617,061$
Fund Balances:
Nonspendable 32,305$ - - - - 32,305$
Restricted - 588,106 1,901,070 1,227,289 2,325,617 6,042,082
Committed 45,947 - - - 102,302 148,249
Assigned - - - - 509,464 509,464
Unassigned 7,884,961 - - - - 7,884,961
Total Fund Balances 7,963,213$ 588,106$ 1,901,070$ 1,227,289$ 2,937,383$ 14,617,061$
R. Net Position Flow Assumption
Sometimes the Village will fund outlays for a particular purpose from both restricted and unrestricted resources.
In order to calculate the amounts to report as restricted-net position and unrestricted-net position in the
government-wide financial statements, a flow assumption must be made about the order in which resources are
considered to be applied. It is the Village’s policy to consider restricted net position to have been depleted before
unrestricted-net position is applied.
S. Capital Contributions
Capital contributions in proprietary fund financial statements arise from grants or outside contributions of
resources restricted to capital acquisition and construction.
T. 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.
32
U. 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, 2013, the Village complied, in all material respects, with these
revenue restrictions.
3. Excesses of expenditures over appropriations
For the year ended September 30, 2013 expenditures exceeded appropriations in the Transportation Surtax
Fund by $95,780, on the Grants Fund by $36,646, and on the Debt Service Fund by $41,755. These over-
expenditures were funded by greater than anticipated revenues or available fund balance.
33
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, 2013, the Village had the following investments:
Investment Type
Fair Value
Weighted
Average
Maturity
(Days)
Weighted
Average
Maturity
(Years)
SBA- LGIP 241,077 44 n/a
SBA- Fund B 53,021 n/a 4.04
Total $294,098
Interest Rate Risk - Interest rate risk refers to the portfolio’s exposure to fair value losses arising from
increasing interest rates. The Village does not have a written policy on interest rate risk; however, the
Village manages its exposure to declines in fair values by limiting the weighted average monthly maturity of
its investment portfolio to less than 180 days.
Credit Risk - State law limits investments in bonds, U.S. Treasuries and agency obligations, or other
evidences of indebtedness to the top ratings issued by nationally recognized statistical rating organizations
(NRSRO) of the United States. The LGIP is rated AAAm by Standard and Poor’s and Fund B is not rated by
nationally recognized statistical rating agencies.
Concentration of Credit Risk - The Village’s investment policy does not stipulate any limit on the
percentage that can be invested in any one issuer. GASB Statement No. 40 requires disclosure when the
percent is 5% or more in any one issuer. As of September 30, 2013, the value of each position held in the
Village’s portfolio comprised of less than 5% of the Village’s investment assets.
34
Investments – Pension Plans
As of September 30, 2013, the Plans had the following investments:
Fair Less than 1 More than
Investment Type Value Year 1-5 Years 6-10 Years 10 Years
U.S. Government Securities 2,921,774$ 20,855$ 997,030$ 607,687$ 1,296,202$
Corporate bonds 4,714,810 34,388 1,675,557 1,015,894 1,988,971
Total fixed income securities 7,636,584$ 55,242$ 2,672,588$ 1,623,581$ 3,285,173$
Investment Maturities (in Years)
Interest Rate Risk – Interest rate risk is the risk that changes in market interest rates will adversely affect
the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity
of its fair value to changes in market interest rates. As a means of limiting its exposure to interest rate risk,
the Plan diversifies its investments by security type and institution, and limits holdings in any one type of
investment with any one issuer with various durations of maturities.
Credit Risk – Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real
or perceived change in the ability of the issuer to repay its debt. This risk is generally measured by the
assignment of a rating by a nationally recognized statistical rating organization. The Plan’s investment
policy utilizes portfolio diversification in order to control this risk. The Plan’s investment policies limit
investments in fixed income securities to a rating of investment grade or higher.
The following table discloses credit ratings by investment type, at September 30, 2013:
Standard & Poor's Percentage of
Quality Ratings of Credit Fixed Income
Risk Debt Securities Fair Value Portfolio
AAA $ 506,670 6.63%
AA+ 455,062 5.96%
AA 231,612 3.03%
AA- 107,823 1.41%
A+ 227,401 2.98%
A 484,162 6.34%
A- 662,550 8.68%
BBB+ 497,660 6.52%
BBB 282,151 3.69%
BBB- 190,350 2.49%
BB+ 31,425 0.41%
N/R 3,959,720 51.85%
$ 7,636,584 100.00%
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, 2013, 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.
35
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 position and the statement of changes in plan net position. 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 -$ -$ -$ 592,132$ 39,969$ -$ 272,499$ 904,600$
Taxes 186,098 325,241 - 46,936 1,933 113,389 - 673,597
Grants and other 230,958 - 21,424 - - 43,913 - 296,295
Total receivables 417,056$ 325,241$ 21,424$ 639,068$ 41,902$ 157,302$ 272,499$ 1,874,492$
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, 2013 was as follows:
Beginning Additions Deletions Ending
Governmental activities
Capital assets not being depreciated:
Land 2,358,437$ -$ -$ 2,358,437$
Construction in progress - 552,096 - 552,096
Total capital assets not being depreciated 2,358,437 552,096 - 2,910,533
Capital assets being depreciated:
Building and improvements 12,614,923 30,794 - 12,645,717
Land improvements 4,259,899 19,173 - 4,279,072
Infrastructure 17,298,696 28,790 - 17,327,486
Machinery and equipment 4,631,238 495,270 (300,429) 4,826,079
Total capital assets being depreciated 38,804,756 574,027 (300,429) 39,078,354
Less accumulated depreciation for:
Building and improvements (3,047,381) (255,706) - (3,303,087)
Land improvements (2,605,668) (193,542) - (2,799,210)
Infrastructure (10,573,199) (430,661) - (11,003,860)
Machinery and equipment (3,411,220) (398,097) 314,664 (3,494,653)
Total accumulated depreciation (19,637,468) (1,278,006) 314,664 (20,600,810)
Total capital assets being depreciated, net 19,167,288 (703,979) 14,235 18,477,544
Governmental activities capital assets, net $ 21,525,725 $ (151,883) $ 14,235 $ 21,388,077
36
Beginning Additions Deletions Ending
Business-type activities
Capital assets being depreciated:
Machinery and equipment 2,283,353$ 449,797$ (612,305)$ 2,120,845$
Drainage improvements 2,006,589 - - 2,006,589
Total capital assets being depreciated 4,289,942 449,797 (612,305) 4,127,434
Less accumulated depreciation for:
Machinery and equipment (1,835,004) (116,932) 669,481 (1,282,455)
Drainage improvements (533,323) (58,945) - (592,268)
Total accumulated depreciation (2,368,327) (175,877) 669,481 (1,874,723)
Total capital assets being depreciated, net 1,921,615 273,920 57,176 2,252,711
Business-type activities capital assets, net 1,921,615$ 273,920$ 57,176$ 2,252,711$
Depreciation expense was charged to functions/programs of the Village as follows:
Governmental activities
General Government $58,461
Public Safety 129,561
Public Works 710,953
Culture and Recreation 379,031
Total depreciation expense – governmental activities 1,278,006$
Business- type activities
Sanitation 116,932$
Stormwater 58,945
Total depreciation expense – business- type activities 175,877$
VI. LONG-TERM DEBT
1. Miami Shores Village, Florida Refunding General Obligation Bond (Series 2013)
In February 2013, the Village issued the Miami Shores Village, Florida Refunding General Obligation Bond,
Series 2013, in order to refund the cost of the Florida Municipal Loan Council Revenue Bonds, Series 1999.
Principal is due annually (through 2029) at various amounts ranging from $115,000 in 2014 to a final
payment of $169,000 in 2029. The bonds bear interest at variable rates ranging from 2.49 to 3.03%, payable
semi-annually. The bonds are secured by ad-valorem revenues. This refunding resulted in an economic gain
of approximately $530,000.
Debt service requirements to maturity for the fiscal year ending September 30, 2013 are summarized as
follows:
September 30,Principal Interest Total
2014 115,000$ 62,552$ 177,552$
2015 123,000 54,607 177,607
2016 125,000 51,643 176,643
2017 128,000 48,346 176,346
2018 131,000 45,114 176,114
2019-2023698,000 174,781 872,781
2024-2028789,000 82,012 871,012
2029 169,000 4,267 173,267
2,278,000$ 523,322$ 2,801,322$
37
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 $130,000 in 2013 to final payment of $305,000 in 2033. The
bonds bear interest at variable rates ranging from 3% to 5%, payable semi-annually. The bonds are
secured by ad-valorem revenues.
Debt service requirements to maturity for the fiscal year ending September 30, 2013 are summarized as
follows:
September 30,Principal Interest Total
2014 130,000$ 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 150,000 166,525 316,525
2019-2023 855,000 718,906 1,573,906
2024-2028 1,080,000 486,506 1,566,506
2029-2033 1,385,000 179,875 1,564,875
4,020,000$ 2,275,858$ 6,295,858$
3. Series 2013 Promissory Note
In September 2013, the Village issued $1,645,000 Miami Shores Village, Florida, Promissory Note, Series
2013 to refinance the amount currently outstanding of the Village’s $3,500,000 Promissory Note, Series
2006. The note bears interest at a rate of 2.51% per annum. The Village pledge 25% of the local option fuel
tax revenues and sanitation fund revenues to secure the note. The note matures in May 2018 and requires
quarterly principal and interest payments throughout the life of the note. This refunding resulted in an
economic gain of approximately $91,000.
Debt service requirements to maturity for the fiscal year ending September 30 , 2013 are summarized as
follows:
September 30,Principal Interest Total
2014 344,346$ 35,981$ 380,327$
2015 350,967 29,360 380,327
2016 359,860 20,468 380,328
2017 368,977 11,350 380,327
2018 220,850 2,390 223,240
1,645,000$ 99,549$ 1,744,549$
38
Long-term debt activity for the fiscal year ended September 30, 2013 was as follows:
Beginning Ending Due
Balance Balance within
10/1/2012 Additions Reductions 9/30/2013 one year
Governmental Activities
Bonds and notes payable:
Promissory Note, Series 2013 -$ 1,645,000$ -$ 1,645,000 344,346$
Refunding General Obligation Bond
Series, 2013
- 2,278,000 - 2,278,000 115,000
General obligation bonds payable - 1999 2,315,000 - (2,315,000) - -
General obligation bonds payable - 2004 4,145,000 - (125,000) 4,020,000 130,000
Promissory note - 2006 1,922,581 - (1,922,581) - -
Less deferred amounts - discounts (71,050) - 71,050 - -
Total bonds and notes payable 8,311,531 3,923,000 (4,291,531) 7,943,000 589,346
Other liabilities:
Capital lease 54,010 - (54,010) - -
OPEB liability 354,474 95,089 - 449,563 -
Claims payable 464,136 - - 464,136 -
Compensated absences 774,628 558,811 (525,500) 807,939 24,238
Total other liabilities 1,647,248 653,900 (579,510) 1,721,638 24,238
Governmental activity long-term liabilities 9,958,779$ 4,576,900$ (4,871,041)$ 9,664,638$ 613,584$
Business-type activities
Other liabilities:
OPEB liability 62,940$ 16,884$ -$ 79,824$ -
Compensated absences 108,202 64,075 (62,326) 109,951 12,480
Business-type activities long-term liabilities 171,142$ 80,959$ (62,326)$ 189,775$ 12,480$
VII. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Interfund balances at September 30, 2013 are as follows:
Interfund Interfund
Receivable Payable
General Fund 35,564$ -$
Non-Major Governmental Funds - 35,564
Total 35,564$ 35,564$
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.
39
Interfund transfer activity for the year ended September 30, 2013 was as follows:
Transfers In Transfers Out
General Fund $ 2,370,374 $ 617,398
Excise Tax - 1,745,605
General Trust Fund 1,706 85,377
Sanitation Fund - 350,000
Stormwater Fund - 45,000
Non-Major Governmental Funds 656,400 239,800
Internal Service Funds 54,700 -
Total $ 3,083,180 $ 3,083,180
Transfers are used to (a) move revenues from the fund that statute or budget requires to collect them to the
fund the statute or budget requires to expend them and (b) move unrestricted revenues collected in the
General Fund to finance various programs accounted for in other funds in accordance with budgetary
authorization.
VIII. EMPLOYEE RETIREMENT PLANS
The Village maintains two separate defined benefit single-employer pension plans, the General Employees'
Retirement Plan and the Police Officers' Retirement Plan which cover substantially all of its full-time employees.
The Village accounts for these pension plans as pension trust funds.
Basis of Accounting
The Village's pension plans are accounted for using the accrual basis of accounting. Plan member contributions
are recognized in the period in which the contributions are due. Employer contributions to each Plan are
recognized when due and the employer has made a formal commitment to provide the contributions. Benefits
and refunds are recognized when due and payable in accordance with the terms of each Plan.
Method Used to Value Investments
Investments are reported at fair value. Securities traded on national or international exchanges are valued at the
last reported sales price or exchange rate. Net appreciation (depreciation) in fair value of investments includes
the difference between cost and fair value of investments held as well as the net realized gains or losses from
securities sold. Interest and dividend income is recognized on the accrual basis when earned. Purchases and
sales of investments are recorded on a trade date basis.
Membership
The membership in the Plans as of October 1, 2011 (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 48 22
Active participants: 63 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.
40
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, 2013, 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, 2013, determined using the actuarial valuation dated October 1, 2011, were
9.29% 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, 2011, the most recent actuarial valuation date, is as follows:
Actuarial
Valuation
Date
Actuarial
Value
of
Assets
(a)
Actuarial
Accrued
Liability (AAL) -
Entry Age
(b)
Unfunded
AAL
(UAAL)
(b-a)
Funded
Ratio
(a/b)
Covered
Payroll
(c)
UAAL As % of
Covered
Payroll
(b-a)/c
10/1/2011 9,427,893 10,739,131 1,311,238 87.8%2,898,603 45.2%
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.
41
Annual Pension Cost and Net Pension Obligation (Asset)
The Village's 2013 contribution was determined through an actuarial valuation performed as of October 1, 2011.
Significant actuarial assumptions used in the latest actuarial valuation are as follows:
Valuation date
10/1/11
Actuarial cost method
Entry Age Normal
Amortization method
Level dollar, closed
Remaining amortization period 20 years
Asset valuation method
5-year smoothed market
Actuarial assumptions:
Investment rate of return
7.9%
Projected salary increases
5.5%
Includes inflation and other general increases at 4.0%
Cost-of-living adjustments
Not applicable
The Village's annual pension cost and net pension asset for the Plan for the year ended September 30, 2013
was as follows:
Annual required contribution $ 269,360
Interest on net pension obligation (6,233)
Adjustment to annual required contribution 9,677
Annual pension cost 272,804
Contributions made 275,000
(Decrease) in net pension asset 2,196
Net pension asset, beginning of year 86,177
Net pension asset, end of year $ 88,373
% of Annual Net
Fiscal YearAnnual PensionActualPension Cost Pension
Ended Cost (APC)Contribution Contribution (APC)Asset
9/30/2011120,602$ 125,000$ 104%78,902$
9/30/2012132,725$ 140,000$ 105%86,177$
9/30/2013272,804$ 275,000$ 101%88,373$
Three Year Trend Information
42
Financial Information
The Plan does not issue separate stand-alone financial statements, therefore, included below is the Statement of
Plan Net Position and the Statement of Changes in Plan Net Position as of and for the fiscal year ended
September 30, 2013.
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2013
ASSETS
Cash and cash equivalents $ 1,116,340
Investments, at fair value 9,781,507
Accrued interest receivable 20,645
Total assets 10,918,492
LIABILITIES AND NET POSITION
DROP liability 481,371
Net position held in trust for pension benefits $10,437,120
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 POSITION
FISCAL YEAR ENDED SEPTEMBER 30, 2013
ADDITIONS
Contributions $455,077
Net investment income 1,449,514
Total additions 1,904,591
DEDUCTIONS
Pension benefits 546,609
Increase 1,357,981
Net position restricted for pension benefits:
Beginning of year 9,079,139
End of year $10,437,120
43
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, 2013, total liabilities for the DROP were
$294,435.
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. 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, 2013, the Village's
contribution was 47.90% of annual covered earnings which was determined by the October 1, 2011 actuarial
valuation.
Funded Status and Funding Progress
The funded status of the Plan as of October 1, 2011, the most recent actuarial valuation date, is as follows:
Actuarial
Valuation
Date
Actuarial
Value
of
Assets
(a)
Actuarial
Accrued
Liability (AAL) -
Entry Age
(b)
Unfunded
AAL
(UAAL)
(b-a)
Funded
Ratio
(a/b)
Covered
Payroll
(c)
UAAL As % of
Covered
Payroll
(b-a)/c
10/1/2011 13,516,192 20,341,716 6,825,524 66.4%2,484,518 274.7%
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.
44
Annual Pension Cost and Net Pension Obligation (Asset)
The Village's 2013 contribution was determined through an actuarial valuation performed as of October 1, 2011.
Significant actuarial assumptions used in the latest actuarial valuation are as follows:
Valuation date
10/1/11
Actuarial cost method
Aggregate
Amortization method
NA
Remaining amortization period NA
Asset valuation method
5-year smoothed market
Actuarial assumptions:
Investment rate of return *
7.9%
Projected salary increases*
6.5%
Includes inflation and other general increases at 4.0%
Cost-of-living adjustments
1.5%
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,
2013 was as follows:
Annual required contribution $ 1,220,259
Interest on net pension obligation (22,894)
Adjustment to annual required contribution 43,872
Annual pension cost 1,241,237
Contributions made 1,200,000
(Decrease) in net pension asset (41,237)
Net pension asset, beginning of year 293,514
Net pension asset, end of year $ 252,277
% of Annual Net
Fiscal YearAnnual PensionActualPension Cost Pension
Ended Cost (APC)Contribution Contribution (APC)Asset
9/30/2011846,109$ 1,012,036$ 120%269,887$
9/30/2012976,759$ 1,000,386$ 102%293,514$
9/30/20131,241,237$ 1,200,000$ 97%252,277$
Three Year Trend Information
Financial Information
The Plan does not issue separate stand-alone financial statements, therefore, included on the next page is the
Statement of Plan Net Position and the Statement of Changes in Plan Net Position as of and for the fiscal year
ended September 30, 2013.
45
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2013
ASSETS
Cash and cash equivalents $ 1,910,122
Investments, at fair value 15,278,010
Accrued interest receivable 33,497
Total assets 17,221,628
LIABILITIES AND NET POSITION
DROP liability 294,435
Net position held in trust for pension benefits $16,927,192
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, 2013, 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.
Changes in the balances of estimated claims for the past three years ended September 30, 2013 are as follows:
2013 2012 2011
Unpaid claims, beginning $464,113 $508,411 $543,707
Incurred claims (including IBNR’s) - - -
Claim payments and disbursements - (44,275) ( 35,296))
Unpaid claims, ending $464,113 $464,136 $508,411
STATEMENT OF CHANGES IN PLAN NET POSITION
FISCAL YEAR ENDED SEPTEMBER 30, 2013
ADDITIONS
Contributions $1,420,575
Net investment income 1,915,437
Total additions 3,336,012
DEDUCTIONS
Pension benefits 833,363
Increase 2,502,649
Net position restricted for pension benefits:
Beginning of year 14,424,543
End of year $16,927,192
46
The claims liability on the preceding page includes the Village's commitment to Miami-Dade County for a prior
workers' compensation claim for $117,876. 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.
RETIREE CONTRIBUTIONS FOR MEDICAL/PRESCRIPTION
In order to begin and maintain retiree Medical/Prescription coverage, premium contributions are required
from the retiree. For dependent coverage, the retiree is required to pay a premium as well. If any required
amounts are not paid timely, the coverage for the retiree and/or the dependent(s) will cease. The amount of
the contributions required for retiree and dependent coverage may change from time to time.
MEDICAL INSURANCE SUPPLEMENT
Retired Police Officers are eligible for supplemental payments from the Village in the amount of $100 per
month to help paying for the costs of health insurance, even if retired officers have coverage through a
different health plan. Eligibility is conditioned upon demonstration that the Officer has health insuranc e
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 o f
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.
47
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 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 October 1, 2012. The actuarial valuation estimated the Unfunded
Actuarial Accrued liability (UAAL) of $1,273,964 and an Annual Required Contribution (ARC) of $157,459.
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.
The Village’s annual OPEB cost for the fiscal year ended 2013 is as follows:
Annual required contribution (ARC) $ 156,260
Interest on net OPEB obligation 17,740
Adjustment to annual required contribution (16,541)
Annual pension cost (APC) 157,459
Contributions made 45,486
Increase in net OPEB obligation 111,973
Net OPEB obligationt, beginning of year 417,414
Net OPEB obligation, end of year $ 529,387
Annual OPEB Costs
Year
Ended
September 30
Annual
OPEB
Cost
Actual
Contribution
Percentage
Contributed
Net
OPEB
Obligation
2011 $ 186,086 $ 79,418 42.68% $ 310,746
2012 186,086 79,418 42.68% 417,414
2013 157,459 45,486 28.89% 529,387
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%
10/1/2012 - 1,273,964 1,273,964 0% 5,118,382 24.89%
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.
48
The Village's annual contribution is based on the actuarial valuation.
Actuarial Cost Method: Entry Age
Amortization Method: Level % Closed
Remaining Amortization Period: 26 Years
Asset Valuation Method: Unfunded
Actuarial Assumptions:
Investment rate of return 4.25% (includes general price inflation at 3.0%)
Projected salary increases 5.2% - 13.0%
Payroll growth assumptions 4.0%
Initial per capital cost trend rate 9.0%
REQUIRED SUPPLEMENTARY INFORMATION
MIAMI SHORES VILLAGE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes:
Property taxes 5,704,697$ 5,704,697$ 5,719,016$ 14,319$
Licenses and permits:
Business licenses - Village 70,000 70,000 62,072 (7,928)
Business licenses - County 18,000 18,000 22,684 4,684
Building permits 500,000 596,000 601,931 5,931
Certificate of reoccupancy 10,000 10,000 12,635 2,635
Other licenses and permits 112,000 112,000 142,250 30,250
Total licenses and permits 710,000 806,000 841,572 35,572
Intergovernmental revenues:
State shared revenues:
State revenue sharing 221,470 221,470 226,692 5,222
Local government half cent sales tax 721,721 721,721 727,084 5,363
Other 1,100 11,100 10,979 (121)
Total intergovernmental revenues 944,291 954,291 964,755 10,464
Charges for services:
Physical environment 40,000 68,000 69,006 1,006
Police extra duty 285,253 285,253 415,182 129,929
Landscape maintenance 19,901 19,901 19,901 -
Culture/recreation 1,078,953 1,306,385 1,437,001 130,616
Total charges for services 1,424,107 1,679,539 1,941,090 261,551
Fines and forfeitures:
Court fines and costs 75,000 75,000 78,594 3,594
School crossing guards 21,000 21,000 18,905 (2,095)
Other 191,000 491,000 511,530 20,530
Total fines and forfeitures 287,000 587,000 609,029 22,029
Miscellaneous:
Rents 25,000 25,000 24,729 (271)
Other 251,750 251,750 252,082 332
Total miscellaneous 276,750 276,750 276,811 61
Interest 15,000 15,000 18,746 3,746
Total revenues 9,361,845$ 10,023,277$ 10,371,019$ 347,742$
(Continued)
Budgeted Amounts
FISCAL YEAR ENDED SEPTEMBER 2013
See notes to budgetary comparison schedule
49
MIAMI SHORES VILLAGE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
Expenditures:
Current:
General government:
Village council 5,969$ 7,069$ 6,968$ 101$
Village attorney 121,325 149,325 146,705 2,620
Village manager 225,323 230,923 230,818 105
Village clerk 148,521 144,629 144,088 541
Code enforcement 162,020 164,394 162,992 1,402
Building department 357,598 406,192 405,638 554
Planning and zoning 152,308 154,731 146,216 8,515
Finance 466,957 447,884 447,315 569
Other general government 694,629 644,664 639,151 5,513
Total general government 2,334,650 2,349,811 2,329,891 19,920
Public safety:
Law enforcement 6,145,160 6,018,361 5,988,767 29,594
School crossing guard 39,803 40,538 38,512 2,026
Total public safety 6,184,963 6,058,899 6,027,279 31,620
Public works:
Parks 393,462 402,802 402,116 686
Street maintenance 427,002 458,527 457,782 745
Public works administration 352,875 348,073 347,357 716
Recreation maintenance 133,830 141,915 141,663 252
Total public services 1,307,169 1,351,317 1,348,918 2,399
Culture and recreation:
Recreation 1,909,288 2,048,669 2,039,905 8,764
Library 386,082 390,968 372,705 18,263
Total culture and recreation 2,295,370 2,439,637 2,412,610 27,027
Total expenditures 12,122,152 12,199,664 12,118,698 80,966
Deficiency of revenues over expenditures (2,760,307) (2,176,387) (1,747,679) 428,708
Other financing sources (uses)
Transfers in 3,377,705 2,793,785 2,370,374 (423,411)
Transfers out (617,398) (617,398) (617,398) -
Appropriations from prior year fund balance - - - -
Total other financing sources (uses)2,760,307 2,176,387 1,752,976 (423,411)
Net change in fund balance - - 5,297 5,297
Fund balance, beginning of year - - 7,957,916 7,957,916
Fund balance, end of year -$ -$ 7,963,213$ 7,963,213$
FISCAL YEAR ENDED SEPTEMBER 2013
Budgeted Amounts
See notes to budgetary comparison schedule
50
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Public service taxes 2,120,600$ 2,120,600$ 2,045,767$ (74,833)$
Total revenues 2,120,600 2,120,600 2,045,767 (74,833)
Other financing uses
Transfers out (2,120,600) (2,120,600) (1,745,605) 374,995
Total other financing uses (2,120,600) (2,120,600) (1,745,605) 374,995
Net change in fund balance - - 300,162 300,162$
Fund balances, beginning - - 287,944
Fund balances, ending -$ -$ 588,106$
Excise Tax
MIAMI SHORES VILLAGE, FLORIDA
BUDGETARY COMPARISON SCHEDULES
MAJOR SPECIAL REVENUE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2013
See notes to budgetary comparison schedules
51
52
MIAMI SHORES VILLAGE, FLORIDA
NOTE TO BUDGETARY COMPARISON SCHEDULES
FISCAL YEAR ENDED SEPTEMBER 30, 2013
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 $77,512, during the fiscal year ended September 30, 2013 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, 2013, expenditures exceeded appropriations in the Transportation Surtax Fund by
$95,780, on the Grants Fund by $36,646, and on the Debt Service Fund by $41,755. These over-expenditures were
funded by greater than anticipated revenues or available fund balance.
UAAL
as a
Actuarial Actuarial Percentage
Value Accrued Unfunded of
Actuarial of Liability AAL Funded Covered Covered
Valuation Assets (AAL) -(UAAL)Ratio Payroll Payroll
Date (a)(b)(b-a)(a/b)(c)(b-a)/c
10/1/2011 9,427,893$ 10,739,131$ 1,311,238$ 87.8%2,898,603$ 45.2%
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%
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
10/1/2011 13,516,192$ 20,341,716$ 6,825,524$ 66.4%2,484,518$ 274.7%
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%
*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
53
Fiscal
Year Annual
Ended Required Percentage
September 30,Contribution Contributed
2013 269,360$ 102%
2012 129,281 108%
2011 117,424 106%
2010 65,084 156%
2009 58,998 169%
2008 88,622 100%
Fiscal
Year Annual
Ended Required Percentage
September 30,Contribution Contributed
2013 1,220,259$ 98%
2012 957,779 98%
2011 838,984 113%
2010 800,787 99%
2009 702,853 107%
2008 700,455 96%
Police Officers' Retirement System
MIAMI SHORES VILLAGE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF EMPLOYER CONTRIBUTIONS
PENSION TRUST FUNDS
General Employees' Retirement System
54
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.
Local Building Law
Transportation Option Better Enforcement
Surtax Gas Tax Communities Grants Training Total
ASSETS
Cash and cash equivalents 529,893$ 603,518$ -$ 11,240$ 15,450$ 1,160,101$
Accounts receivable - net 87,732 25,657 35,564 2,216 1,745 152,914
Due from other funds - - - - - -
Total assets 617,625 629,175 35,564 13,456 17,195 1,313,015
LIABILITIES
Accounts payable and accrued liabilities 1,050 - - - - 1,050
Due to other funds - - 35,564 - - 35,564
Total liabilities 1,050 - 35,564 - - 36,614
FUND BALANCES
Restricted 614,293 597,412 - 13,456 17,195 1,242,356
Committed 2,282 31,763 - - - 34,045
Total fund balances 616,575 629,175 - 13,456 17,195 1,276,401
Total liabilities and fund balances 617,625$ 629,175$ 35,564$ 13,456$ 17,195$ 1,313,015$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2013
Special Revenue Funds
55 (Continued)
Debt
Service
Total
Capital Charter Nonmajor
Improvement High School Governmental
GO Bonds Fund Construction Total Funds
ASSETS
Cash and cash equivalents 1,078,873$ 511,281$ 66,440$ 577,721$ 2,816,695$
Accounts receivable - net 4,388 - - - 157,302
Due from other funds - - - - -
Total assets 1,083,261 511,281 66,440 577,721 2,973,997
LIABILITIES
Accounts payable and accrued liabilities - - - - 1,050
Due to other funds - - - - 35,564
Total liabilities - - - - 36,614
FUND BALANCES
Nonspendable - - - - -
Restricted 1,083,261 - - - 2,325,617
Committed - 511,281 66,440 577,721 611,766
Total fund balances 1,083,261 511,281 66,440 577,721 2,937,383
Total liabilities and fund balances 1,083,261$ 511,281$ 66,440$ 577,721$ 2,973,997$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2013
Capital Projects
56
Local Building Law
Transportation Option Better Enforcement
Surtax Gas Tax Communities Grants Training Total
Revenues:
Property taxes -$ -$ -$ -$ -$ -$
Other taxes 368,810 349,496 35,564 - - 753,870
Intergovernmental revenues - - - 87,939 - 87,939
Fines and forfeitures - - - - 4,489 4,489
Interest income 1,125 1,386 - - 31 2,542
Total revenues 369,935 350,882 35,564 87,939 4,520 848,840
Expenditures:
Current:
General government - - - 83,511 3,375 86,886
Public safety - - - - - -
Public works 199,062 114,109 - - - 313,171
Capital outlay 245,348 88,670 35,564 4,428 - 374,010
Debt service:
Principal - - - - - -
Interest - - - - - -
Total expenditures 444,410 202,779 35,564 87,939 3,375 774,067
Excess (deficiency) of revenues
over (under) expenditures before
other financing sources (74,475) 148,103 - - 1,145 74,773
Other financing sources:
Bond proceeds - - - - - -
Transfers (out)- (93,702) - (1,706) - (95,408)
Transfers in - - - - - -
Total other financing sources (uses)- (93,702) - (1,706) - (95,408)
Net change in fund balance (74,475) 54,401 - (1,706) 1,145 (20,635)
Fund balances, beginning 691,050 574,774 - 15,162 16,050 1,297,036
Fund balances, ending 616,575$ 629,175$ -$ 13,456$ 17,195$ 1,276,401$
FISCAL YEAR ENDED SEPTEMBER 30, 2013
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
57 (Continued)
Debt
Service
Total
Capital Charter Nonmajor
Improvement High School Governmental
GO Bonds Fund Construction Total Funds
Revenues:
Property taxes 536,071$ -$ -$ -$ 536,071$
Other taxes - - - - 753,870
Intergovernmental revenues - - - - 87,939
Fines and forfeitures - - - - 4,489
Interest income 3,244 376 - 376 6,162
Total revenues 539,315 376 - 376 1,388,531
Expenditures:
Current:
General government 69,988 - - - 156,874
Public safety - - - - -
Public works - - - - 313,171
Capital outlay - 611,631 6,803 618,434 992,444
Debt service:
Principal 4,362,580 - - - 4,362,580
Interest 432,997 - - - 432,997
Total expenditures 4,865,565 611,631 6,803 618,434 6,258,066
Excess (deficiency) of revenues
over (under) expenditures before
other financing sources (4,326,250) (611,255) (6,803) (618,058) (4,869,535)
Other financing sources:
Bond proceeds 3,923,000 - - - 3,923,000
Transfers (out)(144,392) - - - (239,800)
Transfers in 380,330 276,070 - 276,070 656,400
Total other financing sources (uses)4,158,938 276,070 - 276,070 4,339,600
Net change in fund balance (167,312) (335,185) (6,803) (341,988) (529,935)
Fund balances, beginning 1,250,573 846,466 73,243 919,709 3,467,318
Fund balances, ending 1,083,261$ 511,281$ 66,440$ 577,721$ 2,937,383$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2013
Capital Projects
58
Local Option Gas Tax Transporation Surtax
Variance with Variance with
Final Budget Final Budget
Budgeted Amounts Actual Positive Budgeted Amounts Actual Positive
Original Final Amounts (Negative)Original Final Amounts (Negative)
Revenues:
Other taxes 357,955$ 357,955$ 349,496$ (8,459)$ 344,000$ 344,000$ 368,810$ 24,810$
Interest income 1,468 1,468 1,386 (82) 630 630 1,125 495
Total revenues 359,423 359,423 350,882 (8,541) 344,630 344,630 369,935 25,305
Expenditures:
Current:
Public works 281,171 317,187 202,779 114,408 348,630 348,630 444,410 (95,780)
Total expenditures 281,171 317,187 202,779 114,408 348,630 348,630 444,410 (95,780)
Excess (deficiency) of revenues
over expenditures 78,252 42,236 148,103 105,867 (4,000) (4,000) (74,475) (70,475)
Other financing sources (uses)
Transfers out (93,702) (93,702) (93,702) - - - - -
Transfer from unappropriated fund balance 15,450 51,466 - (51,466) 4,000 204,000 - (204,000)
Total other financing sources (uses)(78,252) (42,236) (93,702) (51,466) 4,000 204,000 - (204,000)
Net change in fund balance - - 54,401 54,401$ - 200,000 (74,475) (274,475)$
Fund balances, beginning - - 574,774 - - 691,050
Fund balances, ending -$ -$ 629,175$ -$ 200,000$ 616,575$
Special Revenue Funds
MIAMI SHORES VILLAGE, FLORIDA
SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL
NONMAJOR GOVERNMENTAL FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2013
59
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental revenues 52,999$ 52,999$ 87,939$ 34,940$
Total revenues 52,999 52,999 87,939 34,940
Expenditures:
Current:
General government 52,999 52,999 89,645 (36,646)
Total expenditures 52,999 52,999 89,645 (36,646)
Net change in fund balance - - (1,706) (1,706)$
Fund balances, beginning - - 15,162
Fund balances, ending -$ -$ 13,456$
Grants Fund
Special Revenue Funds
MIAMI SHORES VILLAGE, FLORIDA
SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES-BUDGET AND ACTUAL NONMAJOR GOVERNMENTAL FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2013
60 (Continued)
Variance with Variance with
Final Budget Final Budget
Budgeted Amounts Actual Positive Budgeted Amounts Actual Positive
Original Final Amounts (Negative)Original Final Amounts (Negative)
Revenues:
Property taxes 535,376$ 535,376$ 536,071$ 695$ -$ -$ -$ -$
Interest income - - 3,244 3,244 - - 376 376
Total revenues 535,376 535,376 539,315 3,939 - - 376 376
Expenditures:
Current:
General government 11,375 70,700 69,988 712 - - - -
Capital outlay - - - - 276,070 664,637 611,631 53,006
Debt service:
Principal 513,091 4,362,591 4,362,580 11 - - - -
Interest 391,242 391,242 432,997 (41,755) - - - -
Total expenditures 915,708 4,824,533 4,865,565 (41,032) 276,070 664,637 611,631 53,006
(Deficiency) of revenues over expenditures
before other financing sources (380,332) (4,289,157) (4,326,250) (37,093) (276,070) (664,637) (611,255) 53,382
Other financing sources
Bond proceeds - 3,923,000 3,923,000 - - - - -
Transfers in 380,332 380,332 380,330 (2) 276,070 276,070 276,070 -
Transfers out - (182,000) (144,392) 37,608 - - - -
Appropriations from prior year fund balance - 167,825 - (167,825) - 388,567 - (388,567)
Total other financing sources 380,332 4,289,157 4,158,938 (130,219) 276,070 664,637 276,070 (388,567)
Net change in fund balance - - (167,312) (167,312)$ - - (335,185) (335,185)$
Fund balances, beginning - - 1,250,573 - - 846,466
Fund balances, ending -$ -$ 1,083,261$ -$ -$ 511,281$
MIAMI SHORES VILLAGE, FLORIDA
SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES-BUDGET AND ACTUAL NONMAJOR GOVERNMENTAL FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2013
Debt Service Fund Capital Improvement Fund
61
INTERNAL SERVICE FUNDS
Internal service funds are used to account for the financing of goods or services provided by
one department to other departments of the Village on a cost reimbursement basis.
Risk Management Fund –This fund accounts for the accumulation and allocation of costs
associated with insurance.
Fleet Maintenance Fund –This fund accounts for all direct and indirect costs to maintain and
operate the Village’s vehicles and equipment fleet.
Risk Fleet
Management Maintenance
Fund Fund Total
ASSETS
Current assets:
Cash and cash equivalents 945,371$ 866,331$ 1,811,702$
Accounts receivable - net 272,499 - 272,499
Inventories - 34,907 34,907
Prepaid items 152,642 - 152,642
Total current assets 1,370,512 901,238 2,271,750
Capital assets:
Capital assets not being depreciated - 7,127 7,127
Capital assets being depreciated, net - 1,923,699 1,923,699
Total noncurrent assets - 1,930,826 1,930,826
Total assets 1,370,512 2,832,064 4,202,576
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities - 3,304 3,304
Compensated absences - 3,961 3,961
Total current liabilities - 7,265 7,265
Noncurrent liabilities:
Compensated absences - 11,883 11,883
Claims payable 340,000 - 340,000
Total noncurrent liabilities 340,000 11,883 351,883
Total liabilities 340,000 19,148 359,148
NET POSITION
Net investment in capital assets - 1,930,826 1,930,826
Unrestricted 1,030,512 882,090 1,912,602
Total net position 1,030,512$ 2,812,916$ 3,843,428$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2013
62
Risk Fleet
Management Maintenance
Fund Fund Total
Revenues:
Charges for services 802,136$ 1,137,642$ 1,939,778$
Operating expenses:
Administrative and general 17,950 702,995 720,945
Personnel expenses - 156,271 156,271
Depreciation - 255,831 255,831
Insurance premiums and claims 662,331 - 662,331
Total operating expenses 680,281 1,115,097 1,795,378
Operating income 121,855 22,545 144,400
Non-operating revenues (expenses):
Interest income 1,610 1,044 2,654
Interest expense - (616) (616)
Total non-operating revenues (expenses)1,610 428 2,038
Income before transfers and contributions 123,465 22,973 146,438
Transfers in - 54,700 54,700
Contributions - 71,741 71,741
Change in net position 123,465 149,414 272,879
Net position, beginning 907,047 2,663,502 3,570,549
Net position, ending 1,030,512$ 2,812,916$ 3,843,428$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2013
63
Risk Fleet
Management Maintenance
Fund Fund Total
Cash flows from operating activities:
Cash received from customers, governments and other funds 676,276$ 1,137,642$ 1,813,918$
Cash paid to suppliers (686,426) (724,263) (1,410,689)
Cash paid to employees - (129,197) (129,197)
Net cash provided by (used in) operating activities (10,150) 284,182 274,032
Cash flows from non-capital financing activities:
Transfers in - 54,700 54,700
Net cash provided by non-capital financing activities - 54,700 54,700
Cash flows from capital related financing activities:
Acquisition and construction of fixed assets - (25,269) (25,269)
Principal retirements of capital debt - (54,010) (54,010)
Interest paid on capital debt - (616) (616)
Net cash (used in) capital and related financing activities - (79,895) (79,895)
Cash flows from investing activities:
Interest and other income 1,610 1,044 2,654
Net cash provided by investing activities 1,610 1,044 2,654
Net increase (decrease) in cash and cash equivalents (8,540) 260,031 251,491
Cash and cash equivalents, October 1 953,912 606,299 1,560,211
Cash and cash equivalents, September 30 945,372$ 866,330$ 1,811,702$
Reconciliation of operating income to net cash provided by (used in)
operating activities:
Operating income 121,855$ 22,545$ 144,400$
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation - 255,831 255,831
Change in assets and liabilities:
(Increase) decrease in:
Accounts receivable (125,860) - (125,860)
Inventories - 7,229 7,229
Prepaids (6,145) - (6,145)
Increase (decrease) in:
Accounts payable and accrued liabilities - 935 935
Claims payable - - -
Compensated absences - (2,358) (2,358)
Total adjustments (132,005) 261,637 129,632
Net cash provided by (used in) operating activities (10,150)$ 284,182$ 274,032$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2013
64
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.
Ag ency Fund:
Police Insurance Trust Fund –To accumulate resources on behalf of police personnel to
partially cover retirement health insurance.
General
Police Employee's
Pension Pension
Trust Trust Total
ASSETS
Cash and cash equivalents 1,910,122$ 1,116,340$ 3,026,462$
Receivables:
Accrued interest and dividends 33,497 20,645 54,142
Total receivables 33,497 20,645 54,142
Investments, at fair value
U.S. Government securities 960,519 639,010 1,599,529
Municipal bonds 203,825 117,878 321,703
Corporate bonds 3,550,466 2,164,886 5,715,352
Mutual funds- equity 3,731,378 3,979,412 7,710,790
Common stocks 6,831,821 2,880,321 9,712,142
Total investments 15,278,009 9,781,507 25,059,516
Total assets 17,221,628 10,918,492 28,140,120
LIABILITIES
DROP liability 294,435 481,371 775,806
Total liabilities 294,435 481,371 775,806
NET POSITION
Restricted for pension benefits 16,927,193$ 10,437,121$ 27,364,314$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF FIDUCIARY NET POSITION
PENSION TRUST FUNDS
SEPTEMBER 30, 2013
65
General
Police Employee's
Pension Pension
Trust Trust Total
ADDITIONS
Contributions:
Employer 1,200,000$ 275,000$ 1,475,000$
Employees 220,575 180,077 400,652
Total contributions 1,420,575 455,077 1,875,652
Investment income:
Unrealized gains 1,688,120 1,178,261 2,866,381
Realized gains 91,392 136,269 227,661
Interest and dividend income 310,689 214,243 524,932
Total investment (losses)2,090,201 1,528,773 3,618,974
Less investment expenses 174,763 79,259 254,022
Net investment income 1,915,438 1,449,514 3,364,952
Total additions 3,336,013 1,904,591 5,240,604
DEDUCTIONS
Benefits paid 833,363 546,609 1,379,972
Net increase 2,502,650 1,357,982 3,860,632
Net position restricted for pension benefits
Beginning of year 14,424,543 9,079,139 23,503,682
End of year 16,927,193$ 10,437,121$ 27,364,314$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PENSION TRUST FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
66
Balance Balance
September 30, September 30,
2012 Additions Deductions 2013
ASSETS
Cash and cash equivalents 160,156$ 7,275$ -$ 167,431$
LIABILITIES
Other liabilities 160,156$ 7,275$ -$ 167,431$
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
SEPTEMBER 30, 2013
POLICE INSURANCE TRUST AGENCY FUND
67
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 68-72
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 73-77
These schedules contain information to help the reader assess the Village’s most significant
local revenue source, the property tax.
Debt Capacity 78-80
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 81-82
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 83
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.
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Governmental activities:
Net investment in capital assets 13,445,077$ 13,160,184$ 12,279,776$ 11,507,713$ 12,276,631$ 11,255,620$ 9,393,138$ 4,993,244$ 4,325,823$ 2,055,725$
Restricted 6,042,082 5,834,992 3,975,983 3,509,136 3,025,933 4,112,366 3,345,154 3,487,313 3,627,263 6,896,234
Unrestricted 9,430,521 9,592,734 9,904,824 9,350,904 8,901,635 6,373,568 4,506,954 (653,531) (1,860,128) (4,887,241)
Total governmental activities net position 28,917,680 28,587,910 26,160,583 24,367,753 24,204,199 21,741,554 17,245,246 7,827,026 6,092,958 4,064,718
Business-type activities:
Net investment in capital assets 2,252,711 1,921,615 1,924,061 2,043,795 558,671 624,398 770,301 748,120 704,574 1,036,842
Restricted - - - - - - - - - -
Unrestricted 2,598,838 2,688,382 2,385,331 2,032,852 1,578,649 1,132,430 625,851 540,462 520,859 (95,782)
Total business-type activities net position 4,851,549 4,609,997 4,309,392 4,076,647 2,137,320 1,756,828 1,396,152 1,288,582 1,225,433 941,060
Primary government:
Net investment in capital assets 15,697,788 15,081,799 14,203,837 13,551,508 12,835,302 11,880,018 10,163,439 5,741,364 5,030,397 3,092,567
Restricted 6,042,082 5,834,992 3,975,983 3,509,136 3,025,933 4,112,366 3,345,154 3,487,313 3,627,263 6,896,234
Unrestricted 12,029,359 12,281,116 12,290,155 11,383,756 10,480,284 7,505,998 5,132,805 (113,069) (1,339,269) (4,983,023)
Total primary government net position 33,769,229$ 33,197,907$ 30,469,975$ 28,444,400$ 26,341,519$ 23,498,382$ 18,641,398$ 9,115,608$ 7,318,391$ 5,005,778$
Fiscal Year
MIAMI SHORES VILLAGE, FLORIDA
NET POSITION BY COMPONENT
FOR THE LAST TEN FISCAL YEARS
(accrual basis of accounting)
68
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Governmental activities:
General government 2,418,939$ 2,336,763$ 2,396,446$ 2,390,719$ 2,489,426$ 2,325,019$ 2,941,291$ 4,509,714$ 3,330,873$ 3,517,307$
Public safety 6,425,432 5,509,508 5,596,692 5,216,724 5,056,573 4,649,985 4,451,336 4,166,932 4,144,837 3,699,805
Public works 2,385,338 2,346,575 1,949,960 2,201,667 2,237,962 2,407,032 2,357,012 2,232,714 2,133,108 1,409,982
Culture and recreation 2,816,882 2,583,688 2,498,408 2,341,310 2,417,232 2,321,392 2,190,507 2,273,686 2,317,936 2,488,378
Interest on debt 432,997 425,355 443,542 465,672 486,658 500,045 504,411 448,986 544,778 186,174
Total governmental activities expenses 14,479,588 13,201,889 12,885,048 12,616,092 12,687,851 12,203,473 12,444,557 13,632,032 12,471,532 11,301,646
Business-type activities:
Sanitation 2,104,715 2,208,585 2,257,285 2,382,893 2,262,446 2,260,374 2,328,930 2,274,983 2,201,480 1,486,983
Stormwater 180,702 175,761 190,992 206,300 160,808 133,913 150,783 111,931 133,396 149,011
Total business-type activities expenses 2,285,417 2,384,346 2,448,277 2,589,193 2,423,254 2,394,287 2,479,713 2,386,914 2,334,876 1,635,994
Total primary government expenses 16,765,005 15,586,235 15,333,325 15,205,285 15,111,105 14,597,760 14,924,270 16,018,946 14,806,408 12,937,640
Program revenues:
Governmental activities:
Charges for services:
General government 841,572 1,069,135 1,177,047 747,353 914,062 128,389 119,903 169,058 1,655,350 1,305,450
Public safety 1,553,168 2,326,376 777,655 733,926 746,055 424,353 472,470 377,470 274,322 253,121
Public works 843,218 727,160 814,600 750,145 1,082,667 644,197 611,097 674,852 285,611 -
Culture and recreation 1,375,506 1,293,788 1,117,160 1,079,727 965,541 854,747 837,492 759,962 - -
Operating grants and contributions 87,368 170,234 217,303 95,692 - - - 1,900,256 697,160 89,545
Capital grants and contributions 35,564 47,447 65,921 171,549 - - - 188,709 2,111,291 -
Total governmental activities program revenues 4,736,396 5,634,140 4,169,686 3,578,392 3,708,325 2,051,686 2,040,962 4,070,307 5,023,734 1,648,116
Business-type activities:
Charges for services:
Sanitation 2,667,843 2,765,775 2,665,041 2,886,107 2,781,700 2,729,793 2,508,236 2,538,269 2,666,340 1,844,807
Stormwater 248,132 252,420 248,668 247,349 228,393 225,719 195,582 189,428 209,852 165,094
Total business-type activities program revenues 2,915,975 3,018,195 2,913,709 3,133,456 3,010,093 2,955,512 2,703,818 2,727,697 2,876,192 2,009,901
Total primary government program revenue 7,652,371$ 8,652,335$ 7,083,395$ 6,711,848$ 6,718,418$ 5,007,198$ 4,744,780$ 6,798,004$ 7,899,926$ 3,658,017$
(Continued)
MIAMI SHORES VILLAGE, FLORIDA
CHANGES IN NET POSITION
FOR THE LAST TEN FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
69
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Net (expenses) revenue:
Governmental activities (9,743,191)$ (7,567,750)$ (8,715,362)$ (9,037,699)$ (8,479,225)$ (9,194,005)$ (10,150,679)$ (9,561,725)$ (7,447,798)$ (9,653,530)$
Business-type activities 630,558 633,849 465,432 544,263 590,839 561,225 224,105 340,783 541,316 373,907
(9,112,633) (6,933,901) (8,249,930) (8,493,436) (7,888,386) (8,632,780) (9,926,574) (9,220,942) (6,906,482) (9,279,623)
General revenues and other changes in net position:
Governmental activities:
Property taxes 6,255,087 6,078,085 6,143,806 6,583,883 7,275,746 7,224,338 7,373,484 6,260,392 5,372,790 5,398,417
Public services tax 2,045,767 2,098,267 2,137,473 2,222,743 2,113,032 3,076,198 2,923,499 2,849,982 2,145,784 1,213,775
Intergovernmental 929,762 918,034 936,215 797,773 789,922 895,188 954,600 1,059,067 1,169,950 1,442,274
Miscellaneous 415,330 493,243 1,019,320 950,040 447,741 562,941 577,719 308,426 239,325 284,224
Interest earning - unrestricted 32,015 61,071 36,378 38,978 100,429 242,563 398,463 504,743 189,699 43,363
Gain on sale of capital assets - - - - - - 2,269 3,175 1,651
Transfers 395,000 335,000 235,000 (1,392,164) 215,000 215,000 210,000 310,000 210,000 195,834
Total governmental activities 10,072,961 9,983,700 10,508,192 9,201,253 10,941,870 12,216,228 12,440,034 11,295,785 9,329,199 8,577,887
Business-type activities:
Investment earnings 5,994 1,756 2,313 2,900 4,653 14,451 22,377 6,868 8,427 1,477
Other general revenues - - - - - - - 25,500 66,615
Transfers (395,000) (335,000) (235,000) 1,392,164 (215,000) (215,000) (210,000) (310,000) (210,000) (195,834)
Total business-type activities (389,006) (333,244) (232,687) 1,395,064 (210,347) (200,549) (187,623) (277,632) (134,958) (194,357)
Total primary government 9,683,955 9,650,456 10,275,505 10,596,317 10,731,523 12,015,679 12,252,411 11,018,153 9,194,241 8,383,530
Change in net position:
Governmental activities 329,770 2,415,950 1,792,830 163,554 2,462,645 3,022,223 2,289,355 1,734,060 1,881,401 (1,075,643)
Business-type activities 241,552 300,605 232,745 1,939,327 380,492 360,676 36,482 63,151 406,358 179,550
Total primary government 571,322$ 2,716,555$ 2,025,575$ 2,102,881$ 2,843,137$ 3,382,899$ 2,325,837$ 1,797,211$ 2,287,759$ (896,093)$
Fiscal Year
CHANGES IN NET POSITION
MIAMI SHORES VILLAGE, FLORIDA
FOR THE LAST TEN FISCAL YEARS
(accrual basis of accounting)
(Continued)
70
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
General fund:
Reserved -$ -$ -$ 134,569$ 80,052$ 71,923$ 189,953$ 199,435$ 168,497$ 178,786$
Unreserved - - - 6,391,651 5,014,190 5,449,842 4,022,283 2,050,103 1,437,867 1,011,418
Nonspendable *32,305 33,480 1,885 - - - - - - -
Restricted *- - - - - - - - - -
Committed *45,947 77,512 63,109 - - - - - - -
Assigned *- - - - - - - - - -
Unassigned *7,884,961 7,846,925 7,609,716 - - - - - - -
Total general fund 7,963,213$ 7,957,917$ 7,674,710$ 6,526,220$ 5,094,242$ 5,521,765$ 4,212,236$ 2,249,538$ 1,606,364$ 1,190,204$
All other governmental funds:
Reserved -$ -$ -$ 5,247,645$ 5,449,479$ 4,300,256$ 2,852,772$ 2,439,044$ 2,949,951$ 6,546,875$
Unreserved reported in:
Special revenue funds - - - 201,327 348,194 229,152 861,799 682,726 297,583 192,833
Capital project funds - - - 566,251 603,735 551,837 560,171 1,029,557 (990,986) 298,078
Nonspendable *- 59,270 61,225 - - - - - - -
Restricted *6,042,082 5,798,976 3,975,983 - - - - - - -
Committed *611,766 955,728 1,748,148 - - - - - - -
Assigned *- - - - - - - - - -
Unassigned *- - - - - - - - - -
Total all other governmental funds 6,653,848$ 6,813,974$ 5,785,356$ 6,015,223$ 6,401,408$ 5,081,245$ 4,274,742$ 4,151,327$ 2,256,548$ 7,037,786$
*During FY2011 the Village implemented the new fund balance classifications.
Fiscal Year
MIAMI SHORES VILLAGE, FLORIDA
FUND BALANCES FOR GOVERNMENTAL FUNDS
FOR THE LAST TEN FISCAL YEARS
71
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Revenues:
Taxes 6,255,087$ 6,078,085$ 6,143,806$ 6,583,883$ 7,275,746$ 7,224,338$ 7,373,484$ 6,260,392$ 5,372,790$ 6,087,800$
Public services taxes 2,799,637 2,795,688 2,851,593 2,874,645 2,906,861 2,925,431 2,923,499 2,849,982 2,431,395 538,537
Licenses and permits 841,572 914,833 1,052,626 658,833 671,674 682,951 666,628 776,199 790,257 645,238
Intergovernmental 1,052,694 1,135,715 1,219,439 1,065,014 1,290,223 1,837,400 1,188,368 3,125,789 1,756,820 1,442,274
Charges for services 1,941,090 1,734,095 1,542,432 1,460,451 1,310,257 1,101,300 1,077,259 967,235 865,093 653,943
Fines and forfeitures 858,753 1,955,837 423,905 444,944 495,503 267,435 297,075 237,908 264,742 253,121
Miscellaneous 415,330 493,243 986,649 950,040 447,741 529,163 577,719 308,426 248,905 284,224
Investment earnings 32,015 59,289 31,796 35,153 94,300 227,663 349,971 201,466 166,715 43,363
Contributions - - - - - 15,570 19,148 22,243 2,221,581 49,970
Confiscation property - - - - - - - - - 31,697
Total revenues 14,196,178 15,166,785 14,252,246 14,072,963 14,492,305 14,811,251 14,473,151 14,749,640 14,118,298 10,030,167
Expenditures:
General government 2,500,274 2,291,190 2,391,556 2,235,855 2,284,775 2,131,535 2,604,109 3,831,791 2,972,126 2,635,915
Public safety 6,111,942 5,536,160 5,399,589 5,022,542 5,050,239 4,659,900 4,257,493 3,581,621 3,751,476 3,585,699
Public works 1,662,089 1,684,822 1,540,755 1,625,085 1,753,100 1,973,446 2,144,151 1,747,689 1,797,164 1,232,009
Culture and recreation 2,428,789 2,209,660 2,161,213 2,076,176 2,169,671 2,139,027 2,005,558 1,890,555 1,869,382 2,082,218
Capital outlay 1,115,631 1,449,486 1,173,423 1,398,405 1,651,286 1,015,184 1,252,210 1,436,523 7,189,961 997,456
Debt services:
Principal 4,362,580 487,690 465,351 448,297 431,763 415,130 399,008 1,140,461 709,822 254,132
Interest 432,997 421,599 436,736 455,810 473,831 495,997 507,244 406,413 403,445 274,707
Total expenditures 18,614,302 14,080,607 13,568,623 13,262,170 13,814,665 12,830,219 13,169,773 14,035,053 18,693,376 11,062,136
(Deficiency) excesss of revenues over
expenditures (4,418,124) 1,086,178 683,623 810,793 677,640 1,981,032 1,303,378 714,587 (4,575,078) (1,031,969)
Other financing sources (uses):
Proceeds from long-term debt 3,923,000 - - - - - - 2,500,000 - 4,990,413
Payment to refunding agent - - - - - - - - - -
Transfer in 3,028,480 2,983,374 3,331,180 3,283,369 6,066,843 3,308,918 3,745,053 4,128,423 2,275,298 2,109,213
Transfer out (2,688,180) (2,757,627) (3,096,180) (3,048,369) (5,851,843) (3,173,918) (3,946,546) (4,805,054) (2,065,298) (1,913,379)
Total other financing sources (uses)4,263,300 225,747 235,000 235,000 215,000 135,000 (201,493) 1,823,369 210,000 5,186,247
Net change in fund balances (154,824)$ 1,311,925$ 918,623$ 1,045,793$ 892,640$ 2,116,032$ 1,101,885$ 2,537,956$ (4,365,078)$ 4,154,278$
Debt service as a percentage of
noncapital expenditures 27.4%7.2%7.3%7.6%7.4%7.7%7.6%12.3%9.7%5.3%
Fiscal Year
MIAMI SHORES VILLAGE, FLORIDA
CHANGES IN FUND BALANCES FOR GOVERNMENTAL FUNDS
FOR THE LAST TEN FISCAL YEARS
72
Ad-Valorem Taxes Public Licenses Charges Fines and Interest
Fiscal Year General Purpose Service Taxes and Permits Intergovernmental for Services Forfeitures Miscellaneous Income Total
2004 4,042,656 1,752,520 645,238 1,164,631 653,943 253,121 224,528 2,249 8,738,886
2005 4,723,963 1,831,958 790,257 994,950 865,093 264,742 190,978 36,381 9,698,322
2006 5,626,022 2,215,461 776,199 1,059,067 967,235 237,908 246,205 104,444 11,232,541
2007 6,676,178 2,209,125 666,628 954,600 1,077,259 297,075 52,150 199,092 12,132,107
2008 6,605,878 2,222,806 682,951 895,188 1,101,300 267,435 163,325 134,903 12,073,786
2009 6,699,188 2,263,799 671,674 789,921 1,310,257 495,503 161,227 30,488 12,422,057
2010 6,050,360 2,222,743 658,833 797,773 1,460,451 346,463 705,358 19,633 12,261,614
2011 5,614,746 2,137,473 1,052,626 912,421 1,542,432 329,906 633,318 12,859 12,235,781
2012 5,524,395 2,098,267 914,833 892,474 1,734,095 320,926 361,318 42,552 11,888,860
2013 5,719,016 2,045,767 841,572 964,755 1,941,090 609,029 276,811 18,746 12,416,786
Revenues included in the General and Excise Tax Funds
General Governmental and Excise Tax Revenues By Source
Last Ten Fiscal Years
(accrual basis of accounting)
MIAMI SHORES VILLAGE, FLORIDA
73
Fiscal
Year Total Total Total
Ended Residential Personal Centrally Assessed Direct Tax Market
September 30,Property Property Assessed Value Rate Value
2004 516,425,642 20,389,383 944,009 537,759,034 8.2651 950,461,232
2005 572,491,450 23,151,545 1,078,390 596,721,385 9.3751 1,132,666,381
2006 686,912,201 23,406,085 1,233,756 711,552,042 9.1796 1,443,293,476
2007 810,656,588 22,876,703 1,319,888 834,853,179 9.1059 1,853,915,592
2008 939,127,227 22,814,441 1,317,506 963,259,174 7.8164 2,214,199,534
2009 902,193,025 18,873,700 1,612,487 922,679,212 8.2929 2,047,175,031
2010 778,813,734 17,201,636 2,133,438 798,148,808 8.7059 1,524,554,727
2011 703,899,345 15,775,621 1,498,857 721,173,823 8.7762 1,283,953,769
2012 698,738,442 16,953,525 1,544,711 717,236,678 8.7855 1,243,667,012
2013 727,955,201 17,910,658 1,530,814 747,396,673 8.7500 1,284,277,736
Source: Miami-Dade County Property Appraisal Office.
Note: Property in the Village is reassessed each year. State law requires the Property Appraiser to appraise property at 100% of market value.
The Florida Constitution was amended, effective January 1, 1995, to limit annual increases in assessed value of property with homestead
exemption to 3 percent per year or the amount of the Consumer Price index, whichever is less. The increase is not automatic since no
assessed value shall exceed market value. Tax rates are per $1,000 of assessed value.
43.50%
45.07%
of Market Value
56.58%
58.20%
MIAMI SHORES VILLAGE, FLORIDA
ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY
FOR THE LAST TEN FISCAL YEARS
57.67%
56.17%
52.68%
52.35%
Assessed Value
as a percentage
49.30%
45.03%
74
Fiscal Total
Year Total Direct &
Ended City Debt Direct County-Debt Overlapping
September 30,Wide Service Rate Wide Service Fire Library School State Rates
2004 7.7500 0.5150 8.2650 6.4690 0.2850 2.6610 - 9.1000 0.7355 27.5155
2005 8.2500 1.1251 9.3751 6.3792 0.2850 2.6610 - 8.6870 0.7355 28.1228
2006 8.2500 0.9296 9.1796 6.2638 0.2850 2.6610 - 8.4380 0.7355 27.5629
2007 8.2500 0.8559 9.1059 6.0373 0.2850 2.6510 - 8.1050 0.7355 26.9197
2008 7.1400 0.6764 7.8164 5.0019 0.2850 2.2477 - 7.9480 0.6585 23.9575
2009 7.6351 0.6578 8.2929 5.2945 0.2850 2.2487 - 7.7970 0.6585 24.5766
2010 8.0000 0.7059 8.7059 5.3370 0.2850 2.2271 - 7.9950 0.6585 25.2085
2011 8.0000 0.7762 8.7762 5.9275 0.2850 2.5953 - 8.2490 0.6585 26.4915
2012 8.0000 0.7855 8.7855 4.8050 0.2850 2.4627 - 8.0050 0.9708 25.3140
2013 8.0000 0.7500 8.7500 4.7035 0.2850 2.4627 - 7.9980 0.9634 25.1626
(1) Overlapping rates are those of local and county governments that apply to property owners within the Village of Miami Shores.
Additional information:
Property tax rates are assessed per $1,000 of Taxable Assessed Valuation
Tax rate limits:
City 10.000 Mils
County 10.000 Mils
School 10.000 Mils
State 10.000 Mils
Source: Miami Dade County Finance Department, Tax Collector's Division
Miami Shores Village County Special Districts
MIAMI SHORES VILLAGE, FLORIDA
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS (1)
FOR THE LAST TEN FISCAL YEARS
75
Percentage Percentage
Taxable of Total City Taxable of Total City
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Value Value Rank Value
Shore Square Properties, LLC 11,271,148$ 1 1.51%0.00%
Tropical Chevrolet, Inc.6,835,155 2 0.91%3,221,674 3 0.60%
Florida Power & Light Co.6,803,399 3 0.91%0.00%
DVS LLC 2,820,821 4 0.38%0.00%
Wal Miami LLC 2,456,175 5 0.33%0.00%
Frances B Everett 2,400,000 6 0.32%0.00%
Bank of America, N.A.2,119,319 7 0.28%1,264,122 8 0.24%
Omar Cassola 1,926,818 8 0.26%1,615,135 5 0.30%
Norton L Barchan & W 1,900,395 9 0.25%0.00%
Robert Ader & W 1,822,823 10 0.24%0.00%
Northern Trust Bank (Publix)- 0.00%5,732,073 1 1.07%
Boris Moroz/Phil Glassman Trust - 0.00%4,104,988 2 0.76%
Bujolo, Inc - 0.00%1,857,565 4 0.35%
Village of Del Mar Development - 0.00%1,453,275 6 0.27%
George & Nancy Bennet - 0.00%1,436,675 7 0.27%
George and Maria Sirota - 0.00%1,242,486 9 0.23%
Thomas and Sandra Chaille - 0.00%1,169,191 10 0.22%
Total 40,356,053$ 5.40%23,097,184$ 3.85%
Source: Miami-Dade County Property Appraiser Office
2013 2004
MIAMI SHORES VILLAGE, FLORIDA
PRINCIPAL PROPERTY TAX PAYERS
CURRENT YEAR AND TEN YEARS AGO
76
Fiscal
Year Total Levied Collections
Ended for the Percentage in Subsequent Percentage
September 30,Fiscal Year Amount of Levy Years Amount of Levy
2004 4,183,498 3,871,322 92.5%171,334 4,042,656 96.6%
2005 4,922,951 4,525,683 91.9%198,280 4,723,963 96.0%
2006 5,870,304 5,441,607 92.7%184,415 5,626,022 95.8%
2007 6,887,539 6,571,642 95.4%104,536 6,676,178 96.9%
2008 6,877,671 6,396,440 93.0%209,438 6,605,878 96.0%
2009 7,044,748 6,474,514 91.9%224,674 6,699,188 95.1%
2010 6,385,190 5,903,212 92.5%147,128 6,050,340 94.8%
2011 5,769,391 5,474,167 94.9%140,579 5,614,746 97.3%
2012 5,756,124 5,463,514 94.9%60,881 5,524,395 96.0%
2013 5,998,630 5,672,080 94.6%46,936 5,719,016 95.3%
Source: Miami Shores Village Finance Department and Miami-Dade County Property Appraisers Office.
Collected within the
Fiscal Year of the Levy Total collections to Date
MIAMI SHORES VILLAGE, FLORIDA
OPERATING PROPERTY TAX LEVIES AND COLLECTIONS
FOR THE LAST TEN FISCAL YEARS
77
Percentage
Fiscal of Actual
Year General Taxable Percentage
Ended Obligation Loan Value of of Personal
September 30,Bonds Payable Total Property Income
2004 7,910,000 1,485,868 9,395,868 1.75%0.32%
2005 7,750,000 1,405,069 9,155,069 1.53%0.35%
2006 7,585,000 3,444,879 11,029,879 1.55%0.31%
2007 7,415,000 3,215,811 10,630,811 1.27%0.34%
2008 7,235,000 3,438,552 10,673,552 1.11%0.35%
2009 7,050,000 3,095,362 10,145,362 1.10%0.37%
2010 6,860,000 2,737,674 9,597,674 1.20%0.24%
2011 6,665,000 2,358,637 9,023,637 1.25%0.29%
2012 6,460,000 1,922,581 8,382,581 1.17%0.40%
2013 6,298,000 1,645,000 7,943,000 1.06%0.42%
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
78
Percentage Amount
Debt Applicable Applicable
Governmental Unit Outstanding To City To City
701,809,370
Overlapping debt:
Miami-Dade County, Florida (1)1,023,586$ 0.39%4,012$
Miami-Dade County Public Schools (2)173,605 0.36%631
Total overlapping debt 1,197,191$ 4,643
Miami Shores Village 7,943 100.00%7,943
Total direct and overlapping debt 1,205,134$ 12,586$
Sources:
(1) Miami-Dade County, Finance Department - Bond Administration Division
(2) The School Board of Miami-Dade County - Office of the Controller
(3) The percentage of overlapping debt applicable is estimated using the taxable assessed
property values of the Village as compared to the taxable assessed property value
of the County and the School Board.
MIAMI SHORES VILLAGE, FLORIDA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF SEPTEMBER 30, 2013
(in thousands)
79
Legal debt margin calculation for fiscal year 2013:
Assessed value 747,396,673$
Debt limit (10% of assessed value)74,739,667
Debt applicable to limit:
Total bonded debt 7,943,000
Less:
Revenue bonds
Installment loans (1,645,000)
Total debt applicable to limitation 6,298,000
Legal debt margin 68,441,667$
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Debt limit 68,441,667$ 65,491,549$ 65,452,382$ 72,954,881$ 72,117,382$ 92,267,921$ 82,713,158$ 71,155,204$ 59,672,139$ 53,775,903$
Total net debt applicable to limit 6,298,000 6,460,000 6,665,000 6,860,000 7,235,000 7,415,000 7,415,000 7,585,000 7,750,000 7,910,000
Legal debt margin 62,143,667$ 59,031,549$ 58,787,382$ 66,094,881$ 64,882,382$ 84,852,921$ 75,298,158$ 63,570,204$ 51,922,139$ 45,865,903$
Total net debt applicable to the
limit as a percentage of debt limit 9.20%9.86%10.18%9.40%10.03%8.04%8.96%10.66%12.99%14.71%
Fiscal Year
MIAMI SHORES VILLAGE, FLORIDA
LEGAL DEBT MARGIN INFORMATION
FOR THE LAST TEN FISCAL YEARS
80
Personal Per
Income Capita
Estimated (Thousand of Personal Unemployment
Year Population (1)Dollars) Income (2)Rate (3)
2004 10,385 309,650 29,817 5.4%
2005 10,380 330,779 31,867 4.3%
2006 10,462 363,126 34,709 3.8%
2007 10,380 371,511 35,791 3.6%
2008 10,380 386,800 37,264 5.3%
2009 10,380 393,495 37,909 8.9%
2010 10,654 244,648 22,963 12.1%
2011 10,500 274,407 26,134 11.8%
2012 10,493 352,932 33,635 8.7%
2013 10,659 358,515 33,635 8.4%
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
81
Percentage Percentage
of Total County of Total County
Employer Employees Rank Employment Employees Rank Employment
Miami-Dade County Public Schools 48,571 1 3.80%45,886 1 4.18%
Miami-Dade County, Florida 29,000 2 2.27%32,000 2 2.92%
Federal Government 19,500 3 1.52%20,100 3 1.83%
Florida State Government 17,100 4 1.34%18,900 4 1.72%
University of Miami 16,000 5 1.25%9,079 6 0.83%
Baptist Health Systems of South FL 13,376 6 1.05%7,000 9 0.64%
Jackson Health System 12,571 7 0.98%11,700 5 1.07%
Publix Super Markets 10,800 8 0.70%0.82%
American Airlines 9,000 9 0.70%9,000 7 0.82%
Florida International University 8,000 10 0.63%0.00%
Precision Response Corporation 6,000 10
Miami Dade Community College 7,500 8
Total Civilian Labor Force Employment 1,279,047 1,097,454
Source: The Beacon Council, Miami Florida, Miami Business Profile
2013 2004
MIAMI SHORES VILLAGE, FLORIDA
PRINCIPAL EMPLOYERS LOCATED IN MIAMI-DADE COUNTY
CURRENT YEAR AND TEN YEARS AGO
82
Function/Program 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
General government:
Administration:
Full time 10 9 9 9 9 9 10 11 10 -
Part time 5 5 5 - - - - - - -
Finance:
Full time 5 5 5 5 4 4 4 5 5 5
Part time - - - 1 1 1 1 1 1 1
Public works:
Full time 41 40 40 47 45 44 60 66 55 54
Part time 1 - - 1 2 1 2 2 2 2
Culture and recreation:
Recreation:
Full time 12 13 13 13 11 12 12 12 12 12
Part time 51 30 30 51 56 48 64 64 64 64
Library:
Full time 3 3 3 3 3 3 3 4 4 4
Part time 7 6 6 7 7 7 7 6 7 7
Public safety
Police
Full time 43 44 44 45 45 43 47 47 44 44
Part time 3 3 3 3 3 3 5 5 5 4
Total 181 158 158 185 186 175 215 223 209 197
Source: Village Finance Office
Fiscal Year
MIAMI SHORES VILLAGE, FLORIDA
VILLAGE EMPLOYEES BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
83
COMPLIANCE SECTION
84
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, in accordance with the 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, 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, 2013, and the related notes to the financial statements, which
collectively comprise the Village’s basic financial statements, and have issued our report thereon dated June 6, 2014.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Village’s internal control over
financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for
the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion
on the effectiveness of the Village’s internal control. Accordingly, we do not express an opinion on the effectiveness
of the Village’s internal control.
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 a 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. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important e nough to
merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and
was not designed to identify all deficiencies in internal control that might b e material weaknesses or, significant
deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we
consider to be material weaknesses. However, material weaknesses may exist that have not been ide ntified.
4649 PONCE DE LEON BLVD.
SUITE 404
CORAL GABLES, FL 33146
TEL: 305-662-7272
FAX: 305-662-4266
ACC-CPA.COM
85
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Village’s financial statements are free from 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.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the Village’s internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards
in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any
other purpose.
Alberni Caballero & Company, LLP
Alberni Caballero & Company, LLP
Coral Gables, Florida
June 6, 2014
86
MANAGEMENT LETTER IN ACCORDANCE WITH 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 basic financial statements of Miami Shores Village, Florida (the “Village”), as of and for the fiscal
year ended September 30, 2013, and have issued our report thereon dated June 6, 2014.
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 and Chapter 10.550, Rules of the Florida Auditor General. We have issued ou r
Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters Based
on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards. Disclosures
in those reports, which are dated June 6, 2014, should be considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General, which
governs the conduct of local governmental entity audits performed in the State of Florida. This letter includes the
following information, which is not included in the aforementioned auditors’ reports:
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 findings and recommendations made in the preceding annual financial
audit report. There were no recommendations made in the preceding annual financial audit report.
Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of the provisions
of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection with our audit,
we determined that the Village complied with Section 218.415, Florida Statutes.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management letter any
recommendations to improve financial management. In connection with our audit, we did not have any such
recommendations
Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address noncompliance with
provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred,
that have an effect on the financial statements that is less than material but which warrants the attention of
those charged with governance. In connection with our audit, we did not have any such findings.
Section 10.554(1)(i)5., Rules of the Auditor General, requires that the name or official title and legal authority
for the primary government and each component unit of the reporting entity be disclosed in this
management letter, unless disclosed in the notes to the financial statements. This information is disclosed in
the notes to the financial statements.
Section 10.554(1)(i)6.a., Rules of the Auditor General, requires a statement be included as to whether or not
the local governmental entity has met one or more of the conditions described in Section 218.503(1), Florida
Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined that
the Village did not meet any of the conditions described in Section 218.503(1), Florida Statutes.
4649 PONCE DE LEON BLVD.
SUITE 404
CORAL GABLES, FL 33146
TEL: 305-662-7272
FAX: 305-662-4266
ACC-CPA.COM
87
Section 10.554(1)(i)6.b., Rules of the Auditor General, requires that we determine whether the annual
financial report for the Village for the fiscal year ended September 30, 2013, 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, 2013. In connection with our audit,
we determined that these two reports were in agreement.
Pursuant to Sections 10.554(1)(i)6.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.
Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members
of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other
granting agencies, and management of the Village, and is not intended to be and should not be used by anyone other
than these specified parties.
Alberni Caballero & Company, LLP
Alberni Caballero & Company, LLP
Coral Gables, Florida
June 6, 2014