2015MIAMI
SHORES
VILLAGE
A FLORIDA
MUNICIPALITY
COMPREHENSIVE
ANNUAL
FINANCIAL
REPORT
For the Fiscal Year ended September 30, 2015
2014 - 2015
MIAMI SHORES VILLAGE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015
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 24-62
Required Supplementary Information:
Budgetary Comparison Schedule:
General Fund 63-64
Special Revenue Funds 65
Notes to Budgetary Comparison Schedule 66
Schedule of Changes in Net Pension Liability and Related Ratios – General Employees’
Retirement System (Village’s Reporting) 67
Schedule of Changes in Net Pension Liability and Related Ratios – General Employees’
Retirement System (Plan’s Reporting) 68
Schedule of Contributions – General Employee’s Retirement System 69
Schedule of Investment Returns – General Employee’s Retirement System 70
Schedule of Changes in Net Pension Liability and Related Ratios – Police Officers’
Retirement System (Village’s Reporting) 71
Schedule of Changes in Net Pension Liability and Related Ratios – Police Officers’
Retirement System (Plan’s Reporting) 72
Schedule of Contributions – Police Officer’s Retirement System 73
Schedule of Investment Returns – Police Officer’s Retirement System 74
MIAMI SHORES VILLAGE, FLORIDA
TABLE OF CONTENTS
II. FINANCIAL SECTION (Continued)
Combining and Individual Financial Statements and Schedules:
Combining Balance Sheet – Nonmajor Governmental Funds 75-76
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances –
Nonmajor Governmental Funds 77-78
Schedules of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual
Nonmajor Governmental Funds 79-81
Internal Service Funds:
Combining Statement of Net Position 82
Combining Statement of Revenues, Expenses and Changes in Net Position 83
Combining Statement of Cash Flows 84
Fiduciary Funds:
Combining Statement of Fiduciary Net Position – Pension Trust Funds 85
Combining Statement of Changes in Fiduciary Net Position – Pension Trust Funds 86
Statement of Changes in Assets and Liabilities – Agency Fund 87
III. STATISTICAL SECTION (Unaudited)
Net Position by Component 88
Changes in Net Position 89-90
Fund Balances for Governmental Funds 91
Changes in Fund Balances of Governmental Funds 92
General Governmental and Excise Tax Revenues by Source 93
Assessed Value and Actual Value of Taxable Property 94
Property Tax Rates Direct and Overlapping Governments 95
Principal Property Taxpayers – Current Year and Nine Years Ago 96
Operating Property Tax Levies and Collections 97
Ratios of Outstanding Debt By Type 98
Direct and Overlapping Governmental Activities Debt 99
Legal Debt Margin Information 100
Demographic and Economic Statistics 101
Principal Employers Located in Miami Dade County – Current Year and Nine Years Ago 102
Village Employees by Function/Program 103
IV. COMPLIANCE SECTION
Independent Auditors’ Report on Internal Controls over Financial Reporting 104-105
and on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
Management Letter Required by Section 10.550 of the Rules of the Auditor General of the 106-107
State of Florida
Independent Accountants’ Report on Compliance with the Requirements of Section 218.415 108
Florida Statutes in Accordance with Chapter 10.550, Rules of the Auditor General
of the State of Florida
INTRODUCTORY SECTION
-v-
Mayor Alice Burch
Vice Mayor Steven Zelkowitz
Councilman
Mac Adam Glinn
Councilwoman
Herta Holly
Councilwoman
Ivonne Ledesma
MIAMI SHORES VILLAGE, FLORIDA
LIST OF ELECTED OFFICIALS
SEPTEMBER 30, 2015
-vi-
MIAMI SHORES VILLAGE, FLORIDA
LIST OF APPOINTED OFFICIALS
SEPTEMBER 30, 2015
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 ...................................................................................................... Michelle Brown
Planning & Zoning Director ...................................................................................David Dacquisto
Chief of Police ............................................................................................................. Kevin Lystad
Public Works Director .................................................................................................... Scott Davis
Recreation Director .......................................................................................................... Jerry Estep
VILLAGE AUDITORS
Alberni Caballero & Fierman, LLP
Certified Public Accountants and Consultants
-vii-
MIAMI SHORES VILLAGE, FLORIDA
ORGANIZATION CHART
SEPTEMBER 30, 2015
MAYOR & COUNCIL
MAYOR - ALICE BURCH
VICE MAYOR - STEVEN ZELKOWITZ
COUNCILMAN - MAC ADAM GLINN
COUNCILWOMAN - HERTA HOLLY
COUNCILWOMAN - IVONNE LEDESMA
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
MICHELLE BROWN
RECREATION
DIRECTOR
JERRY ESTEP
-viii-
FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT
1
Alberni Caballero & Fierman, LLP
4649 Ponce de Leon Blvd.
Suite 404
Coral Gables, Florida 33146
T: 305.662.7272 F: 305.662.4266
ACF-CPA.COM
I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I
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, 2015, and the related 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.
Auditors’ 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 stand ards 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 assessmen t 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 overall 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, in all material respects, the respective
financial position of the governmental activities, th e business-type activities, each major fund, and the aggregate
remaining fund information of the Village, as of September 30, 2015, and the respective changes in financial position
and, where applicable, cash flows for the fiscal year then ended in accordance with accounting principles generally
accepted in the United States of America.
2
Emphasis of Matters
As discussed in Note 1 to the financial statements, the Village implemented Governmental Accounting Standards
Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions – an amendment of GASB
Statement No. 27 as of October 1, 2014. As further discussed in Note 13, the opening net position has been restated
due to the implementation of this new standard.
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 on pages 3 through 12 and Budgetary Comparison Schedule, Schedule of Changes in Net Pension
Liability and Related Ratios, Schedule of Contributions, and Schedule of Investment Returns on pages 63 through 74,
be presented to supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic,
or historical context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries
of management about the methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during
our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
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 information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures, in cluding
comparing and reconciling such information directly to the underlying accounting and other records used 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 30, 2016, on our
consideration of the Village’s internal control over financial reporting and on our tes ts of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to
describe the scope of our testing of internal control over financial reporting and compliance and the res ults of that
testing, and not to provide an opinion on internal control over financial reporting or on compliance. 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 & Fierman, LLP
Alberni Caballero & Fierman, LLP
Coral Gables, Florida
June 30, 2016
MANAGEMENT’S DISCUSSION AND ANALYSIS
(Required Supplementary Information)
3
Management’s Discussion and Analysis
As management of Miami Shores Village, we offer readers of the Village’s financial statements this narrative overview and
analysis of the financial activities of Miami Shores Village for the fiscal year ended September 30, 2015. Readers are
encouraged to consider the information presented here in conjunction with additional information that is furnished in the letter
of transmittal, which can be found on pages i to iv of this report.
This discussion and analysis is designed to (a) assist the reader in focusing on significant financial issues; (b) provide an
overview of the Village’s financial activity; (c) identify changes in the Village’s financial position (its ability to addres s the next
and subsequent year challenges); (d) identify any material deviations from the financial plan (the approved budget); and (e)
identify individual fund issues or concerns. The information contained within this section should be considered only a part of a
greater whole.
Financial Highlights for Fiscal Year 2015
At September 30, 2015, Miami Shores Village assets deferred outflows exceeded its liabilities and deferred
inflows by $29.4 million (net position). Of this amount, $16.9 million was invested in capital assets.
Additionally, $5.3 million was restricted by law, agreements, and debt covenants or for capital projects. The
Village had an unrestricted net position of $6.5 million at September 30, 2015 a decrease of $6.1 million or a
52% decrease as compared with the prior year. The decrease in unrestricted net position was due to the
implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions; an
amendment of GASB Statement No. 27. Under this Statement, the Village was required to record the net
pension liability in the government wide financial statements for the current year, as well as, restating the net
position as of September 30, 2014.
During fiscal year 2015, total net position decreased by $5.4 million, from $34.8 million in FY2014 to $29.4
million in FY2015. Of this decrease, $6.5 million was in governmental activities coupled with an increase of
$155 thousand in business-type activities.
At September 30, 2015, Miami Shores Village’s governmental funds had fund balances totaling $15.1
million. Of the total fund balance, approximately $8.5 million or 57% was unassigned and $907 thousand or
6% was committed for future capital projects and encumbrances. The restricted fund balance of
approximately $5.7 million, or 37%, is related to funds restricted by the contributing agency. The
nonspendable fund balance of approximately $12 thousand is related to prepaid items. The net change in fund
balances during the year was an increase of $773 thousand.
The General Fund’s fund balance increased by $622 thousand for the fiscal year ended September 30, 2015.
This increase was a result of departmental savings during the year due to unfilled vacant positions and other
lower than budgeted cost savings.
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 of three components: 1) government-wide financial statements; 2) individual
fund financial statements; and, 3) notes to the financial statements. This report also contains other supplementary information
in addition to the basic financial statements themselves.
Government-wide financial statements. The government-wide financial statements are designed to provide readers with a
broad overview of the financial activity of Miami Shores Village, in a manner similar to a private-sector business.
The Statement of Net 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 deteriorati ng.
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).
4
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, Stormwater, and Water and Sewer operations.
The government-wide financial statements may be found on pages 13 to14 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. Miami Shores Village, like other local governments, uses fund accounting
to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of Miami Shores Village can be
divided into three categories: governmental funds, proprietary funds and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements. However, unlike the government-wide financial statements,
governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances
of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s
near-term cash flow and financing requirements.
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 thirteen (13) 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 nine governmental funds are combined into a
single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of
combining statements elsewhere in this report.
The basic governmental fund financial statements may be found on pages 15 to 18 of this report.
Proprietary funds. Miami Shores Village maintains three 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, Stormwater, and Water & Sewer operations. Internal service funds provide for an
accounting method whereby the organization can accumulate and allocate costs internally among the other user divisions. The
Village uses internal service funds to account for its risk management costs as well as its fleet operation. Because both of these
services predominantly benefit governmental rather than business-type functions, they have been included within governmental
activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The
proprietary fund financial statements provide separate informatio n for the Village’s Sanitation, Stormwater, and Water & Sewer
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 62 of this report.
5
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 63 to 74 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 75 to 87 of this report.
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:
2015 2014 2015 2014 2015 2014 2014-2015
Current and other assets 18,112$ 18,155$ 3,286$ 3,627$ 21,398$ 21,782$ -1.76%
Capital assets 20,986 21,814 3,308 2,195 24,294 24,009 1.19%
Total assets 39,098 39,969 6,594 5,822 45,692 45,791 -0.22%
Deferred outflows related to
pension 1,864 - - - 1,864,303 -
Total deferred inflows of
resources 1,864 - - - 1,864,303 -
Long-term liabilities
outstanding 16,375 9,016 225 210 16,600 9,226 79.93%
Other liabilities 669 915 752 739 1,421 1,654 -14.09%
Total liabilities 17,044 9,931 977 949 18,021 10,880 65.63%
Deferred inflows on business
license tax 86 84 - -86 84 2.38%
Total deferred inflows of
resources 86 84 - -86 84 2.38%
Net investment in capital
assets,14,140 14,460 2,785 2,195 16,925 16,655 1.62%
Restricted 5,954 5,521 - - 5,954 5,521 7.84%
Unrestricted 3,737 9,972 2,832 2,678 6,569 16,541 -60.29%
Total net position 23,831$ 29,953$ 5,617$ 4,873$ 29,448$ 38,717$ -23.94%
Table 1
Miami Shores Village
Summary of Net Position
(in thousands)
Govermental activities Business-type-activities Total primary govermental
Total
percentage
change
Net position may be used to assess the financial position of the Village. The Village’s combined net position as of September
30, 2015 was $29.4 million. Approximately 57.5%, or $16.9 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, $5.5 million are restricted net position and are subject to external restrictions on how they may be spent.
At September 30, 2015, Miami Shores Village had an unrestricted net position of $6.5 million. At the end of the current fiscal
year, Miami Shores Village is able to report positive balances in all three categories of net position, both for the government as
a whole, as well as for its separate governmental and business-type activities.
Continued on next page
6
Governmental activities. Financial activities for the fiscal year are reported below. Key indicators, including revenues and
expenditures by category are presented herein for review:
Business-type-activities
2015 2014 2015 2014 2015 2014 2014-2015
Revenues:
Program revenues:
Charges for services 3,803$ 3,705$ 2,884$ 2,886$ 6,687$ 6,591$ 1.46%
Operating grants & Contributions 816 784 - - 816 784 4.08%
Capital grants and Contributions 35 474 672 - 707 474 49.16%
General Revenues:
Property taxes 6,894 6,407 - - 6,894 6,407 7.60%
Other taxes 2,200 2,214 - - 2,200 2,214 -0.63%
Intergovernmental revenues 1,027 1,002 - - 1,027 1,002 2.50%
Interest earnings - unrestricted 29 21 6 6 35 27 29.63%
Miscellaneous 1,751 470 - - 1,751 470 272.55%
Total revenues 16,555 15,077 3,562 2,892 20,117 17,969 11.95%
Expenses:
General government 3,159 2,761 - - 3,159 2,761 14.42%
Public safety 6,089 6,206 - - 6,089 6,206 -1.89%
Highways Streets 3,492 2,239 - - 3,492 2,239 55.96%
Sanitation / Stormwater - - 2,417 2,460 2,417 2,460 -1.75%
Culture & recreation 2,976 2,946 - - 2,976 2,946 1.02%
Interest on Long-term Debt 272 284 - - 272 284 -4.23%
Total expenses 15,988 14,436 2,417 2,460 18,405 16,896 8.93%
Increase in net position before
Transfers (356) 641 1,145 432 789 1,073 -26.47%
Sale of capital assets 523 - - - 523 - -
Transfers 400 395 (400) (395) - - -
Increase in net position 567 1,036 745 37 1,312 1,073 22.27%
Beginning net position 23,264 28,918 4,873 4,836 28,137 33,754 -16.64%
Ending net position 23,831$ 29,954$ 5,618$ 4,873$ 29,449$ 34,827$ -15.44%
Table 2
Miami Shores Village
Changes in Net Position
(in thousands)
Total percentage
change Governmental activities Total primary government
Ending net position decreased 15.44% during FY2015. Although revenues increased by $1.4 million or 8.93%, expenses
increased by $1.5 million or 9.18%. This $300 thousand difference was offset by $523 thousand for the sale of capital assets.
The decrease in ending net position is attributable to the implementation of GASB Statement No. 68, Accounting and Financial
Reporting for Pensions – an amendment of GASB Statement No. 27 . Under this Statement, the Village was required to record
the net pension liability in the government wide financial statements for the current year, as well as, restating the net position as
of September 30, 2014. The amount of the restatement is $6.7 million, the ending net position at September 30, 2014 of $34.8
million restated to the beginning net position of $28.1 million at September 30, 2015.
Continued on next page
7
Figure A-1
Expenses and Program Revenues – Governmental Activities
For the Fiscal Year Ended September 30, 2015
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
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, 2015
Other taxes
19%
Charges for services
23%
Property Taxes
42%
Investment earnings
0%
Other
11%
Grant/contribution
5%
8
Business-type activities. The Miami Shores Village major business-type activities include the following enterprise funds:
Sanitation Fund
Stormwater Fund
Water & Sewer Fund
Net position of business-type activities increased by approximately $745 thousand; a $709 thousand increase compared to
FY2014. The increase was due to a capital contribution of $672 thousand to the Stormwater Fund at the completion of a grant
funded Stormwater Project. 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, 2015
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 $15.1 million, an $800 thousand increase compared to FY2014. Of this amount, $8.5 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 $578 thousand, 2) restricted for funds which
restrict how the funds may be spent of $5.9 million and 3) nonspendable for funds used to account for amounts which cannot
currently be spent, such as prepaid expenses of $4 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 $8.5 million as compared with $7.9 million in the prior year. Committed fund balance
remained consistent with the prior fiscal year at $32 thousand.
The Village's General Fund balance increased by $600 thousand during the 2015 fiscal year. Although deficit spending had
been anticipated, the Village was able to increase fund balance as a result of departmental savings due to unfilled vacant
positions and other lower than budgeted cost savings.
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
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 $988
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 three 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 decreased by $172 thousand during the fiscal
year. The decrease was due to the purchase of capital projects to enhance the operations of the Police Department. The
remaining fund balance of $1.5 million 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 2015, the fund balance decreased $6 thousand dollars for a balance of $1.3
million.
Proprietary funds. The Village’s proprietary funds provide the same type of information found in the government -wide
financial statements, but in more detail.
Unrestricted net position of the Sanitation Fund at the end of the year totaled $1.9 million, a $78 thousand increase 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 $905 thousand, a $77 thousand increase in
net position values. Unrestricted net position is maintained to fund future maintenance projects for the existing
stormwater system.
General Fund Budgetary Highlights
The Village adopts annual budgets by fund, general 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 $643 thousand below final budgeted amounts. Savings were realized in general government,
$293 thousand, public safety, $248 thousand, public works, $32 thousand, and culture and recreation, $70 thousand. These
savings in general government costs and various departmental costs were due to staff vacancies and conservative spending.
The fiscal year 2015 final amended budget was $14 million, an increase of 0.7 % over the original General Fund budget of
$13.9 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 0.0%. The final Adopted Budget is balanced with revenues of $11 million, $2.9 million
in operating transfers from Excise Tax, Sanitation Fund and Stormwater Fund and $102 thousand from fund balance.
Unanticipated revenues of $81 thousand and the cost savings of $643 thousand resulted in no transfers being necessary from the
fund balance. Unanticipated revenues included $265 thousand in additional building permit fees due to an increase in building,
$89 thousand in recreation fees due to the addition of programs , $30 thousand in public safety due to Police off duty pay, $64
thousand in code enforcement due to increased collections and $150 thousand due to additional Country Club rent. The
increase in unanticipated revenues was offset by a decrease in transfers from Excise Tax resulting in the $81 thousand increase.
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, 2015 amounts to $24.3 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, 2015 and 2014
(net of depreciation, in thousands)
Governmental Activities Business-Type Activities Total
Classification 2015 2014 2015 2014 2015 2014
Land $ 2,358,437 $ 2,358,437 $ - $ - $ 2,358,437 $ 2,358,437
Construction in progress 546,876
1,379,705 523,164 - 1,070,040 1,379,705
Building 8,927,774 9,152,988 - - 8,927,774 9,152,988
Land Improvement 1,619,924 1,496,836 - - 1,619,924 1,496,836
Infrastructure 5,905,459 6,137,760 1,956,807 1,358,711 7,862,266 7,496,471
Machinery and equipment 1,627,699 1,288,555 828,203 836,532 2,455,902 2,125,087
Totals $ 20,986,169 $ 21,814,281
$ 3,308,174 $ 2,195,243 $ 24,294,343 $ 24,009,524
Additional information on Miami Shores’ capital assets may be found in Note 5 on Pages 37 to 38 of this report.
Long-term Liabilities. At September 30, 2015, Miami Shores Village had $16.6 million in long-term liabilities, which are
summarized in the schedule below. The increase of $7.4 million is related to the implementation of GASB Statement No. 68,
Accounting and Financial Reporting for Pensions – an amendment of GASB Statement No. 27. Additional information on the
Village’s long-term debt may be found in Note 6 on Pages 38 to 40 of this report.
Miami Shores Village
Outstanding Long-term Liabilities as of September 30, 2015 and 2014
Governmental Activities Business-type activities Total Primary Government
2015 2014 2015 2014 2015 2014
General obligation bonds $ 5,895,300 $ 6,053,000 $ - $ - $ 5,895,300 $ 6,053,000
Other( issuance discount) - - - - - -
Other debt 950,427 1,300,964 - - 950,427 1,300,964
6,845,727 7,353,964 - - 6,845,727 7,353,964
OPEB liability 632,802 540,664 112,359 95,999 745,161 636,663
Estimated insurance claims payable 340,000 340,000 - - 340,000 340,000
Compensated absences 681,646 781,239 112,620 114,544 794,266 895,783
Net pension liability 7,874,653 - - - 7,874,653 -
Total $16,374,828 $ 9,015,867 $224,979 $ 210,543 $16,599,807 $ 9,226,410
11
Economic Factors and Next Year’s Budgets and Rates
Miami Shores Village is a single-family, residential 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 six-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 2015 reflected an increase of $500 thousand, precipitated by an increase in property values
of $66 million or 8.6% in property values as compared with 2014. 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 2015 showed an increase of $66 million, increasing property tax revenues by $500 thousand.
During the current fiscal year, unassigned fund balance in the General Fund was $8.5 million, an increase of $600 thousand over
the unreserved fund balance in 2014 of $7.9 million. This $8.5 million is approximately equal to 7.3 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. Fiscal year 2016 budgeted expenditures and
transfers are expected to be $14.7 million, or 9.5%, higher than the fiscal year 2015 actual of $13.4 million. 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, 2006-2015
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
8000000
9000000
2006200720082009201020112012201320142015
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, 2006-2015
0
2
4
6
8
10
2006200720082009201020112012201320142015
Operating Millage Debt Service Millage
Fiscal year 2016 budgeted expenditures and transfers are expected to increase $722 thousand compared with fiscal year 2015.
This increase in expenditures is required to meet the ongoing needs of the Village and to fund capital improvement projects.
Requests for Information
This financial report is designed to provide a general overview of Miami Shores Village s’ finances to our citizens, taxpayers,
customers, investors, creditors, and others with an interest in the Villages’ finances. Questions concerning this report or
requests for additional financial information should be directed to the Finance Director, Holly Hugdahl, CPA, CGMA.
MIAMI SHORES VILLAGE
Finance Department
10050 Northeast Second Avenue
Miami Shores, Florida 33138-2382
BASIC FINANCIAL STATEMENTS
Business-
Governmental Type
Activities Activities Total
ASSETS
Cash and cash equivalents 16,126,765$ 3,340,766$ 19,467,531$
Investments 298,772 - 298,772
Accounts receivable - net 960,736 395,304 1,356,040
Prepaid items 156,342 - 156,342
Inventories 46,009 73,426 119,435
Internal balances 523,164 (523,164) -
Capital assets not being depreciated 2,905,313 523,164 3,428,477
Capital assets being depreciated, net 18,080,856 2,785,010 20,865,866
Total assets 39,097,957 6,594,506 45,692,463
DEFERRED OUTLOWS OF RESOURCES
Deferred outflows related to pension 1,864,303 - 1,864,303
LIABILITIES
Accounts payable and accrued liabilities 582,829 13,774 596,603
Unearned revenues 66,544 737,905 804,449
Accrued interest payable 20,293 - 20,293
Noncurrent liabilities:
The amount due in one year 678,709 28,155 706,864
The amount due in more than one year 15,696,119 196,824 15,892,943
Total liabilities 17,044,494 976,658 18,021,152
DEFERRED INFLOWS OF RESOURCES
Business license tax 80,408 - 80,408
Deferred inflows related to pension 6,018 - 6,018
Total deferred inflows of resources 86,426 - 86,426
NET POSITION
Net investment in capital assets 14,140,442 2,785,010 16,925,452
Restricted for:
Public safety 1,543,096 - 1,543,096
Transportation 1,738,911 - 1,738,911
Debt service 1,115,625 - 1,115,625
Charter school 961,419 - 961,419
Recreation 594,506 - 594,506
Unrestricted 3,737,341 2,832,838 6,570,179
Total net position 23,831,340$ 5,617,848$ 29,449,188$
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF NET POSITION
SEPTEMBER 30, 2015
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 3,159,828$ 1,005,762$ -$ -$ (2,154,066)$ -$ (2,154,066)$
Public safety 6,088,608 1,027,550 36,203 - (5,024,855) - (5,024,855)
Public works 3,492,136 200,977 780,177 35,564 (2,475,418) - (2,475,418)
Culture and recreation 2,976,180 1,568,844 - - (1,407,336) - (1,407,336)
Interest on long-term debt 272,374 - - - (272,374) - (272,374)
Total governmental activities 15,989,126 3,803,133 816,380 35,564 (11,334,049) - (11,334,049)
Business-type activities:
Sanitation 2,223,695 2,639,106 - - - 415,411 415,411
Stormwater 193,174 244,805 - 672,381 - 724,012 724,012
Total business activities 2,416,869 2,883,911 - 672,381 - 1,139,423 1,139,423
Total 18,405,995$ 6,687,044$ 816,380$ 707,945$ (11,334,049)$ 1,139,423$ (10,194,626)$
General revenues:
Property taxes, levied for general purpose 6,893,572$ -$ 6,893,572$
Public service taxes 2,199,772 - 2,199,772
Intergovernmental (unrestricted)1,027,237 - 1,027,237
Investment income (unrestricted)29,568 5,721 35,289
Miscellaneous 827,991 - 827,991
Sales of capital assets 523,164 - 523,164
Transfers 400,000 (400,000) -
Total general revenues 11,901,304 (394,279) 11,507,025
Change in net position 567,255 745,144 1,312,399
Net position, beginning (as restated, see Note 13)23,264,085 4,872,704 28,136,789
Net position, ending 23,831,340$ 5,617,848$ 29,449,188$
MIAMI SHORES VILLAGE, FLORIDA
FISCAL YEAR ENDED SEPTEMBER 30, 2015
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 7,860,338$ 635,163$ 1,490,044$ 1,507,051$ 2,657,225$ 14,149,821$
Investments 298,772 - - - - 298,772
Accounts receivable - net 269,532 353,166 35,812 - 159,520 818,030
Due from other funds 529,086 - - - - 529,086
Prepaid items 3,741 - - - - 3,741
Total assets 8,961,469$ 988,329$ 1,525,856$ 1,507,051$ 2,816,745$ 15,799,450$
LIABILITIES
Accounts payable and accrued liabilities 227,621$ -$ 1,473$ 236,882$ 59,713$ 525,689$
Due to other funds - - - - 5,922 5,922
Unearned revenues 64,544 - - - 2,000 66,544
Total liabilities 292,165 - 1,473 236,882 67,635 598,155
DEFERRED INFLOWS OF RESOURCES
Business license tax 80,408 - - - - 80,408
FUND BALANCES
Nonspendable 3,741 - - - - 3,741
Restricted - 988,329 1,524,383 1,270,169 2,170,676 5,953,557
Committed 31,562 - - - 578,434 609,996
Unassigned 8,553,593 - - - - 8,553,593
Total fund balances 8,588,896 988,329 1,524,383 1,270,169 2,749,110 15,120,887
Total liabilities, deferred inflows of resources, and
fund balances 8,961,469$ 988,329$ 1,525,856$ 1,507,051$ 2,816,745$ 15,799,450$
MIAMI SHORES VILLAGE, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2015
Major Funds
See notes to basic financial statements
15
Fund balances - total government funds (Page 15)15,120,887$
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 39,337,908
Less accumulated depreciation (20,311,321)
Deferred inflows/outflows of resources in the Statement of Net Position
will be recognized in future periods
Deferred outflows related to pension 1,864,303
Deferred inflows related to pension (6,018)
1,858,285
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 (6,845,727)$
OPEB liability (632,802)
Net pension liability (7,874,653)
Accrued interest payable (20,293)
Compensated absences (664,366) (16,037,841)
Net position of internal service funds are not reported with governmental funds 3,863,422
Net position of governmental activities (Page 13)23,831,340$
SEPTEMBER 30, 2015
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 6,383,317$ -$ -$ -$ 510,255$ 6,893,572$
Public service taxes - 2,199,772 - - - 2,199,772
Licenses and permits 1,237,435 - - - - 1,237,435
Intergovernmental revenues 1,062,801 - - - 816,380 1,879,181
Charges for services 2,059,389 - - - - 2,059,389
Fines and forfeitures 499,777 - 111,302 - 2,664 613,743
Miscellaneous 449,445 - 60,454 95,792 222,300 827,991
Interest income 14,281 - 3,746 3,120 5,911 27,058
Total revenues 11,706,445 2,199,772 175,502 98,912 1,557,510 15,738,141
Expenditures:
Current:
General government 2,915,556 - - 18,661 139,634 3,073,851
Public safety 6,037,597 - 97,185 - - 6,134,782
Public Works 1,272,602 - - - 551,334 1,823,936
Culture and recreation 2,549,231 - - 31,296 - 2,580,527
Capital outlay - - 249,940 5,503 1,270,693 1,526,136
Debt service:
Principal - - - - 635,837 635,837
Interest - - - - 272,374 272,374
Total expenditures 12,774,986 - 347,125 55,460 2,869,872 16,047,443
(Deficiency) excess of revenues
over expenditures before
other financing sources (uses)(1,068,541) 2,199,772 (171,623) 43,452 (1,312,362) (309,302)
Other financing sources (uses):
Issuance of debt - - - - 4,017,600 4,017,600
Payment to refunded bonds escrow agent - - - - (3,890,000) (3,890,000)
Sales of capital assets - - - - 523,164 523,164
Transfers in 2,297,500 - - - 971,570 3,269,070
Transfers (out)(606,500) (1,897,500) - (50,000) (283,070) (2,837,070)
Total other financing sources (uses)1,691,000 (1,897,500) - (50,000) 1,339,264 1,082,764
Net change in fund balances 622,459 302,272 (171,623) (6,548) 26,902 773,462
Fund balances - beginning 7,966,437 686,057 1,696,006 1,276,717 2,722,208 14,347,425
Fund balances - ending 8,588,896$ 988,329$ 1,524,383$ 1,270,169$ 2,749,110$ 15,120,887$
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2015
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)773,462$
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 1,526,136$
Less current year depreciation (1,135,212)
Net adjustment 390,924
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 (9,602)
Sales of capital assets (523,164)
Contribution of capital assets to business-type activities (672,381)
Contribution of capital assets to internal service fund (122,449)
Net adjustments (1,327,596)
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.
Issuance of debt (4,017,600)
Refunded bonds 3,890,000
Principal payments 635,837
508,237
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 in net pension liability 210,791
Change in compensated absences 101,798
Change in OPEB liability (92,138)
Change in accrued interest payable 16,252
Allocation of internal service funds' net loss (14,475)$
222,228
Change in net position of governmental activities (Page 14)567,255$
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015
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 Water & Sewer Total Funds
Current assets:
Cash and cash equivalents 2,379,511$ 961,255$ -$ 3,340,766$ 1,976,944$
Accounts receivable - net 371,077 24,227 - 395,304 142,706
Inventories 73,426 - - 73,426 46,009
Prepaid items - - - - 152,601
Total current assets 2,824,014 985,482 - 3,809,496 2,318,260
Capital assets:
Capital assets not being depreciated - - 523,164 523,164 7,127
Capital assets being depreciated, net 828,203 1,956,807 - 2,785,010 1,952,455
Total noncurrent assets 828,203 1,956,807 523,164 3,308,174 1,959,582
Total assets 3,652,217 2,942,289 523,164 7,117,670 4,277,842
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 13,071 703 - 13,774 57,140
Due to other funds - - 523,164 523,164 -
Unearned revenues 674,381 63,524 - 737,905 -
Compensated absences 27,187 968 - 28,155 4,320
Total current liabilities 714,639 65,195 523,164 1,302,998 61,460
Non-current liabilities:
Compensated absences 81,561 2,904 - 84,465 12,960
OPEB liability 99,875 12,484 - 112,359 -
Claims payable - - - - 340,000
Total noncurrent liabilities 181,436 15,388 - 196,824 352,960
Total liabilities 896,075 80,583 523,164 1,499,822 414,420
NET POSITION
Net investment in capital assets 828,203 1,956,807 - 2,785,010 1,959,582
Unrestricted 1,927,939 904,899 - 2,832,838 1,903,840
Total net position 2,756,142$ 2,861,706$ -$ 5,617,848$ 3,863,422$
Enterprise Funds
Business-type Activities -
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2015
See notes to basic financial statements
19
Governmental
Activities -
Internal
Service
Sanitation Stormwater Water & Sewer Total Funds
Operating revenues:
Charges for services 2,639,106$ 244,805$ -$ 2,883,911$ 1,704,260$
Operating expenses:
Administrative and general 752,792 24,440 - 777,232 603,335
Personnel expenses 875,499 80,459 - 955,958 189,859
Depreciation 127,792 74,285 - 202,077 173,970
Contractual services 467,612 13,990 - 481,602 -
Insurance premiums and claims - - - - 844,530
Total operating expenses 2,223,695 193,174 - 2,416,869 1,811,694
Operating income (loss)415,411 51,631 - 467,042 (107,434)
Non-operating revenues:
Interest income 4,610 1,111 - 5,721 2,510
Total non-operating revenues 4,610 1,111 - 5,721 2,510
Income (loss) before transfers and contributions 420,021 52,742 - 472,763 (104,924)
Transfers in - - - - 90,000
Transfers (out)(350,000) (50,000) - (400,000) (122,000)
Contributions - 672,381 - 672,381 122,449
Change in net position 70,021 675,123 - 745,144 (14,475)
Total net position, beginning 2,686,121 2,186,583 - 4,872,704 3,877,897
Total net position, ending 2,756,142$ 2,861,706$ -$ 5,617,848$ 3,863,422$
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, 2015
See notes to basic financial statements.
20
Governmental
Activities-
Internal
Service
Sanitation Stormwater Water & Sewer Total Funds
Cash flows from operating activities:
Cash received from customers, governments and other funds 2,717,373$ 250,989$ 523,164$ 3,491,526$ 1,652,610$
Cash paid to suppliers (1,207,897) (37,727) - (1,245,624) (1,363,899)
Cash paid for employees (860,405) (81,117) - (941,522) (187,653)
Net cash provided by operating activities 649,071 132,145 523,164 1,304,380 101,058
Cash flows from non-capital financing activities:
Transfers in - - - - 90,000
Transfers out (350,000) (50,000) - (400,000) (122,000)
Net cash (used in) non-capital financing activities (350,000) (50,000) - (400,000) (32,000)
Cash flows from capital related financing activities:
Acquisition and construction of capital assets (119,463) - (523,164) (642,627) (282,529)
Net cash (used in) capital and related financing activities (119,463) - (523,164) (642,627) (160,080)
Cash flows from investing activities:
Interest and other income 4,610 1,111 - 5,721 2,510
Net cash provided by investing activities 4,610 1,111 - 5,721 2,510
Net increase in cash and cash equivalents 184,218 83,256 - 267,474 (88,512)
Cash and cash equivalents, October 1 2,195,293 877,999 - 3,073,292 2,065,456 Net position resticted for pensions and charter school
Cash and cash equivalents, September 30 2,379,511$ 961,255$ -$ 3,340,766$ 1,976,944$
Reconciliation of operating income to net cash
provided by operating activities:
Operating income (loss)415,411$ 51,631$ -$ 467,042$ (107,434)$
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation 127,792 74,285 - 202,077 173,970
Change in assets and liabilities:
(Increase) decrease in:
Accounts receivable 79,375 5,791 - 85,166 (51,650)
Inventories (564) - - (564) 23,157
Prepaid items - - - - 3,669
Increase (decrease) in:
Accounts payable and accrued liabilities 13,071 703 - 13,774 57,140
Compensated absences 552 (2,476) - (1,924) 2,206
OPEB liability 14,542 1,818 - 16,360 -
Due to other funds - - 523,164 523,164 -
Unearned revenues (1,108) 393 - (715) -
Total adjustments 233,660 80,514 523,164 837,338 208,492
Net cash provided by operating activities 649,071$ 132,145$ 523,164$ 1,304,380$ 101,058$
Enterprise Funds
Business-type Activities -
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2015
See notes to basic financial statements
21
Pension Private
Trust Purpose
Funds Trust Agency
ASSETS
Cash and cash equivalents 843,070$ 1,423,725$ 177,483$
Receivables:
Other receivables 32,922 - -
Accrued interest and dividends 73,644 - -
Total receivables 106,566 - -
Investments, at fair value
U.S. Government securities 1,520,898 - -
Municipal bonds 269,223 - -
Corporate/Foreign bonds 4,257,186 - -
Mutual funds - equity 13,742,003 - -
Common stocks 4,422,862 - -
Mortgage Backed Securities 5,267,201 - -
Total investments 29,479,373 - -
Total assets 30,429,009 1,423,725 177,483
LIABILITIES
Other liabilities - - 177,483
Total liabilities - - 177,483
NET POSITION
Net position resticted for pensions and charter school 30,429,009$ 1,423,725$ -$
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
SEPTEMBER 30, 2015
See notes to basic financial statements
22
Pension Private
Trust Purpose
Funds Trust
ADDITIONS
Contributions:
Employer 1,621,121$ -$
Employees 369,521 -
Total contributions 1,990,642 -
Investment income:
Unrealized (losses)(2,107,746) -
Realized gains 136,488 -
Interest and dividend income 1,710,563 3,953
Total investment income (loss)(260,695) 3,953
Less investment expenses (100,607) -
Net investment income (loss)(361,302) 3,953
Total additions 1,629,340 3,953
DEDUCTIONS
Benefits paid 1,596,613 -
Administrative expenses 27,231 -
Distribution to charter school - 250,000
Total deductions 1,623,844 250,000
Net increase (decrease)5,496 (246,047)
Net position resticted for pensions and charter school
Beginning of year 30,423,513 1,669,772
End of year 30,429,009$ 1,423,725$
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015
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, 2015
NOTE 1 - 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 activities)
report information on all of the nonfiduciary activities of the Village. For the most part, the effect of interfund
activity has been removed from these statements. Governmental activities, which normally are supported by
taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a
significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment
are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or
segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly
benefit from goods, services, or privileges provided by a given function or segment and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular function or
segment. Taxes and other items not properly included among program revenues are reported instead as general
revenues.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even
though the latter are excluded from the government-wide financial statements. Major individual governmental
funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
All remaining non-major governmental funds are aggregated and reported as other governmental or other
proprietary funds.
25
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Basis of Accounting and Basis of Presentation
The government-wide financial statements are reported using the economic resources measurement focus and
the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues
are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the
related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and
similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have
been met.
Governmental fund financial statements are reported using the current financial resources measurement focus
and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable
and available. Revenues are considered to be available when they are collectible within the current period or
soon enough thereafter to pay liabilities of the current period. For this purpose, the Village considers receivables
collected within 60 days after year-end to be available and recognizes them as revenues of the current year.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt
service expenditures, as well as expenditures related to compensated absences and claims and judgments, are
recorded only when payment is due.
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered
to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Revenues for
expenditure driven grants are recognized when the qualifying expenditures are incurred. All other revenue items
are considered to be measurable and available only when cash is received by the Village.
The Village reports the following major governmental funds:
General Fund - This fund is the Village’s primary operating fund. It accounts for all financial resources of the
general government, except those required to be accounted for in another fund.
Excise Tax Fund - This fund records revenues received by the Village for contractually-adopted franchise
fee agreements and corresponding public service or utility taxes. The receipts of these funds are used to
subordinate the Village’s General Obligation Bond Series 1999 should insufficient debt service revenues be
received from ad valorem levies. Surplus proceeds are then transferred out of this fund and into the General
Fund for operating purposes.
Police Forfeiture - This fund accounts for proceeds obtained through the sale of confiscated and unclaimed
property turned over to the Village through court judgments. Proceeds are to be used solely for law
enforcement purposes.
General Trust Fund - This fund accumulates assets for its employees, other governmental entities and/or
funds, primarily for the recreation, library and police departments, as well as the charter school.
The Village reports the following major proprietary fund:
Sanitation Fund - This fund accounts for the operations and maintenance of the Village’s sanitation system.
Stormwater Fund - This fund accounts for the operations and maintenance of the Village’s stormwater
system.
Water & Sewer Fund - This fund accounts for the annual assessments to pay for the construction cost and
maintenance fees for the NE Second Avenue Business District Water & Sewer Project. Future maintenance
costs for the grind pumps will be paid from this fund.
26
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
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.
Agency Fund - The agency fund is custodial in nature and does not present results of operations or have a
measurement focus. This fund is used to account for assets that the Village holds for others in an agency
capacity.
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 reported as program revenues under the function “Public
Works”.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues
and expenses generally result from providing services and producing and delivering goods in connection with a
proprietary fund’s principal ongoing operations. The principal operating revenues of the sanitation, and
stormwater fund and internal service funds are charges to customers or other funds for services. Operating
expenses for the enterprise funds and internal service funds include the cost of services, administrative
expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition ar e
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.
27
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
Implementation of Governmental Accounting Standards Board Statements
During the fiscal year ended September 30, 2015, the Village implemented the following GASB Statement that
had an impact on the financial statements:
Statement No. 68, Accounting and Financial Reporting for Pensions – an amendment of GASB Statement
No. 27. This statement establishes accounting and financial reporting for pensions that are provided to the
employees of state and local governmental employers through pension plans that are administered through
trusts. Implementation of this statement requires a restatement to beginning net position (see note 13).
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
investments consist of amounts placed with the State Board of Administration in the Local Government Surplus
Funds Trust Fund (Florida PRIME) investment pool. The Florida PRIME 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 Plan’s investments are carried at fair value using quoted mark et prices to value investments. Differences
between cost and market value are recorded as net unrealized gains or losses. Net realized gains or losses for
securities which are sold are combined with the unrealized gains and losses and shown as “net appreciation
(depreciation) in fair value of investments” in plan net position. Dividends and interest are recognized as earned.
Purchases and sales of investments are recorded on a trade-date basis.
The Village's investments in Florida PRIME 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 between the
governmental activities and business-type activities are reported in the government-wide financial statements as
“internal balances.”
F. Inventories and Prepaid Items
Inventories are valued at cost using the first-in, first-out (FIFO) method. The costs of governmental fund-type
inventories are recorded as expenditures when consumed rather than when purchased (consumption method).
In the governmental funds, reported inventories are offset by fund balance reserve which indicates that they do
not constitute available spendable resources.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded – 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.
28
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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, 2015 was 8.6392 mills ($8.6392 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.
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
29
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
J. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows
of resources. This separate financial statement element, deferred outflows of resources, represents a
consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of
resources (expense/expenditure) until then. The Village has pension contributions that qualify for reporting in
this category on the government-wide statement of net position in the amount of $1,864,303.
In additions to liabilities, the statement of net position will sometimes report a separate section for deferred
inflows of resources. This separate financial statement element, deferred inflows of resources, represents an
acquisition of net position that applies to a future period(s) and so will not be recognized as inflows of resources
(revenue) until that time. The Village has unearned revenues and pension expenses that quality for reporting in
this category in the amount of $ 80,408 and $6,018, respectively.
Pension contributions and expenses were recorded as a result of the implementation of Governmental
Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions – an
amendment of GASB No. 27 as of October 1, 2014 (see Note 1).
Unearned revenues consists of local business license tax collected in advance of $80,408 reported in both the
governmental funds and the government-wide statement of net position. This amount is deferred and will be
recognized as an inflow of resources in the period that the amounts become available.
Net position is the residual of all other elements presented in a statement of financial position. It is the difference
between (a) assets plus deferred outflow of resources and (b) liabilities and deferred inflows of resources.
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 15-16 fiscal year.
30
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
M. Employee Benefit Plan
The Village provides a separate defined benefit pension plan for its police officers and general employees. At
September 30, 2015, for purposes of measuring the net pension liability, deferred outflows of resources and
deferred inflows of resources related to pensions and pension expense, information about the General
Employees’ Retirement Plan and the Police Officers’ Retirement Plan are presented in the government-wide
statement of net position. The net pension liability is a function of the annual required contributions, interest,
adjustments to the annual required contribution, annual pension costs and actual employer’s contributions made
to the Plans. Please refer to Note 8 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, 2015, 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.
31
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Q. Fund Balance
As of September 30, 2015, 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.
32
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Q. Fund Balance (Continued)
The Village considers restricted amounts to be spent first when both restricted and unrestricted fund balance is
available unless there are legal documents/contracts that prohibit this, such as grant agreements requiring dollar
for dollar spending. Additionally, the Village would first use committed, then assigned, and lastly unassigned
amounts of unrestricted fund balance when expenditures are made.
Other Total
Excise Police General Governmental Governmental
General Tax Forfeiture Trust Funds Funds
Fund Balances:
Nonspendable:
Prepaids 3,741$ -$ -$ -$ -$ 3,741$
Restricted:
Transportation - 988,329 - - 750,582 1,738,911
Library - - - 57,389 272,300 329,689
Recreation - - - 119,871 13,456 133,327
Buildings - - - 131,490 - 131,490
Charter School - - - 961,419 - 961,419
Public Safety - - 1,524,383 - 18,713 1,543,096
Debt service - - - - 1,115,625 1,115,625
Committed:31,562 - - - 578,434 609,996
Unassigned:8,553,593 - - - - 8,553,593
Total Fund Balances 8,588,896$ 988,329$ 1,524,383$ 1,270,169$ 2,749,110$ 15,120,887$
Fund Balances:
Nonspendable 3,741$ -$ -$ -$ -$ 3,741$
Restricted - 988,329 1,524,383 1,270,169 2,170,676 5,953,557
Committed 31,562 - - - 578,434 609,996
Unassigned 8,553,593 - - - - 8,553,593
Total Fund Balances 8,588,896$ 988,329$ 1,524,383$ 1,270,169$ 2,749,110$ 15,120,887$
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.
33
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
T. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions that affect the amounts of assets,
liabilities, disclosures of contingent liabilities, revenues and expenditures/expenses reported in the financial
statements and accompanying notes. These estimates include assessing the collectibility of receivables, the
realization of pension obligations, OPEB 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.
NOTE 2 - 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, 2015, the Village complied, in all material respects, with these
revenue restrictions.
3. Excesses of Expenditures Over Appropriations
For the year ended September 30, 2015 expenditures exceeded appropriations in the Debt Service Fund by
$213,117. These over-expenditures were funded by greater than anticipated revenues or available fund
balance.
34
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 3 - 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.
The SBA administers Florida PRIME (“PRIME”), which is governed by Chapter 19 -7 of the Florida
Administrative Code and Chapters 215 and 219 of the Florida Statutes. These rules provide guidance and
establish the policies and general operating procedures of the administration of PRIME. PRIME is not a
registrant with the Securities and Exchange Commission; however, the SBA has adopted operating
procedures consistent with the requirements for a 2a-7 fund, which permits money market funds to use
amortized cost to maintain a constant net asset value (“NAV”) of $1 per share. The fair value of the positio n
in the Florida PRIME is equal to the value of the pool shares.
Investments – Village
As of September 30, 2015, the Village had the following investments:
Investment Type
Fair Value
Weighted
Average
Maturity
(Days)
Weighted
Average
Maturity
(Years)
SBA - PRIME $ 298,772 29 n/a
Total $ 298,772
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 PRIME is rated AAAm by Standard and Poor’s.
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, 2015, the value of each position held in the
Village’s portfolio comprised of less than 5% of the Village’s investment assets.
The SBA issues a separate financial report. A copy of this financial report can be found on the SBA website
at www.sbafla.com or a hard copy may be obtained by sending an email to flaudgen@aud.state.fl.us, by
telephone at (850) 487-9024, or by mail at G74 Claude Pepper Building, III West Madison Street,
Tallahassee, Florida 32399-1450.
35
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 3 - DEPOSITS AND INVESTMENTS (Continued)
Investments – Pension Plans
The Pension Board of Trustees has developed certain investment guidelines and has retained investment
managers. The investment managers are expected to maximize the return on the investment portfolio and
may make transactions consistent with that expectation within the Board's guidelines. The investment
managers are compensated based on a percentage of their portfolio's market value.
The Plans’ investment policy is determined by the Board who is responsible for directing the investment of
the assets of the Plans to ensure that there will be adequate monies for future benefits. The policy has been
identified by the Board to conduct the operations of the Plans in a manner so that the assets will provide the
pension and other benefits provided under applicable laws, including Village ordinances, preserving principal
while maximizing the rate of return.
Investment in all equity securities shall be limited to those listed on a major U.S stock exchange and limited
to no more than 70% (at market) of the Plan’s total asset value. The equity position in any one company
shall not exceed 5% of the Plan’s total asset value at the time of purchase. Investments in stocks of foreign
companies shall be limited to 25% of the Plan’s market value.
Investments in fixed income securities shall meet or exceed a credi t rating of “BBB-” from Standard &
Poor’s. The market value of bonds issued by any single issuer shall not exceed 3% of the manager’s
portfolio.
Types of Investments
Florida statutes and Plan investment policy authorize the Board to invest funds in various investments. The
current target allocation of these investments at fair value is as follows:
Target Allocation
Asset Group General Employees Police
Domestic Equity 50.00% 45.00%
International Equity 15.00% 15.00%
Domestic Bonds 35.00% 40.00%
International Bonds 0.00% 0.00%
Real Estate 0.00% 0.00%
Rate of Return
For the fiscal year ending September 30, 2015, the annual money-weighted rate of return on pension plan
investments, net pension plan investment expense, was -1.20% for the General Employee Retirement Plan
and -0.90% for the Police Retirement Plan. The money weighted rate of return expresses investment
performance, net of investment manager and consultant expenses adjusted for the changing amounts
actually invested. Inputs to the internal rate of return calculation are determined on a monthly basis.
As of September 30, 2015, 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 $ 7,057,322 $ - $ 2,107,034 $ 994,311 $ 3,955,977
Corporate Bonds 4,257,186 - 1,731,840 1,042,870 1,482,476
Total fixed income securities $ 11,314,508 $ - $ 3,838,874 $ 2,037,181 $ 5,438,453
36
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 3 - DEPOSITS AND INVESTMENTS (Continued)
Rate of Return (Continued)
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 rea l
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, 2015:
Standard & Poor's Percentage of
Quality Ratings of Credit Fixed Income
Risk Debt Securities Fair Value Portfolio
AAA $ 1,786,147 15.79%
AA+ 351,275 3.10%
AA 99,779 0.88%
AA- 319,136 2.82%
A+ 281,084 2.48%
A 667,947 5.90%
A- 742,582 6.56%
BBB+ 1,033,720 9.14%
BBB 521,493 4.61%
BBB- 536,918 4.75%
N/R 4,974,427 43.97%
$ 11,314,508 100.00%
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,
2015, no investment by any one issuer was above the 5% threshold required for disclosure.
Custodial of Credit Risk –This is the risk that in the event of a failure of the counterparty, the Plan will not
be able to recover the value of its investments or collateral securities that are in the possession of an outside
party. Consistent with the Plan’s investment policy, the investments are held by Plan’s custodial bank and
registered in the Plan’s name.
Risks and uncertainties - The Plan has investments in a combination of stocks, bonds, government
securities and other investment securities. Investment securities are exposed to various risks, such as
interest rate, market and credit risk. Due to the level of risk associated with certain investment securities and
the level of uncertainty related to changes in the value of investment securities, it is at least reasonably
possible that changes in risks in the near term would materially affect balances and the amounts reported in
the statement of plan net 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.
37
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 4 - RECEIVABLES
Receivables at year-end are as follows:
Non-major Internal
Excise Tax Police Sanitation Stormwater Governmental Enterprise
General Fund Forfeiture Fund Fund Funds Funds Total
Receivables:
Accounts -$ -$ -$ 371,077 24,227$ -$ 142,706$ 538,010$
Taxes 224,681 353,166 - - - 126,913 - 704,760
Grants and other 44,851 - 35,812$ -$ - 32,607 - 113,270
Total receivables 269,532$ 353,166$ 35,812$ 371,077$ 24,227$ 159,520$ 142,706$ 1,356,040$
NOTE 5 - CAPITAL ASSETS
Capital assets activity for the fiscal year ended September 30, 2015 was as follows:
Governmental activities Beginning Increases Decreases Ending
Capital assets not being depreciated:
Land 2,358,437$ -$ -$ 2,358,437$
Construction in progress 1,379,705 844,291 (1,677,120) 546,876
Total capital assets not being depreciated 3,738,142 844,291 (1,677,120) 2,905,313
Capital assets being depreciated:
Building and improvements 12,712,960 33,412 - 12,746,372
Land improvements 4,493,891 322,389 - 4,816,280
Infrastructure 17,574,580 206,836 - 17,781,416
Machinery and equipment 5,197,470 751,262 (450,634) 5,498,098
Total capital assets being depreciated 39,978,901 1,313,899 (450,634) 40,842,166
Less accumulated depreciation for:
Building and improvements (3,559,972) (258,626) - (3,818,598)
Land improvements (2,997,055) (199,301) - (3,196,356)
Infrastructure (11,436,820) (439,137) - (11,875,957)
Machinery and equipment (3,908,915) (412,118) 450,634 (3,870,399)
Total accumulated depreciation (21,902,762) (1,309,182) 450,634 (22,761,310)
Total capital assets being depreciated, net 18,076,139 4,717 - 18,080,856
Governmental activities capital assets, net 21,814,281$ $ 849,008 $ (1,677,120)20,986,169$
Business-type activities Beginning Increases Decreases Ending
Capital assets not being depreciated:
Construction in progress -$ 523,164$ -$ 523,164$
Total capital assets not being depreciated - 523,164 - 523,164
Capital assets being depreciated:
Machinery and equipment 2,143,800 119,463 (323,171) 1,940,092
Drainage improvements 2,006,589 672,381 - 2,678,970
Total capital assets being depreciated 4,150,389 791,844 (323,171) 4,619,062
Less accumulated depreciation for:
Machinery and equipment (1,307,268) (127,792) 323,171 (1,111,889)
Drainage improvements (647,878) (74,285) - (722,163)
Total accumulated depreciation (1,955,146) (202,077) 323,171 (1,834,052)
Total capital assets being depreciated, net 2,195,243 589,767 - 2,785,010
Business-type activities capital assets, net 2,195,243$ 1,112,931$ -$ 3,308,174$
38
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 5 - CAPITAL ASSETS (Continued)
Depreciation expense was charged to functions/programs of the Village as follows:
Governmental activities
General Government 72,535$
Public Safety 194,349
Public Works 646,636
Culture and Recreation 395,662
Total depreciation expense – governmental activities 1,309,182$
Business- type activities
Sanitation 127,792$
Stormwater 74,285
Total depreciation expense – business-type activities 202,077$
NOTE 6 - LONG-TERM DEBT
1. 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 $3,500,000 Promissory Note, Series 2006. The
note bears interest at a rate of 2.51% per annum. The Village pledged 25% of the local option fuel tax revenues
and sanitation fund revenues to secure the note. The note matures in May 2018 and requires quarterly principal
and interest payments throughout the life of the note.
Debt service requirements to maturity for the fiscal year ending September 30, 2015 are summarized as follows:
September 30,Principal Interest Total
2016 359,860$ 20,468$ 380,328$
2017 368,977 11,350 380,327
2018 221,590 2,389 223,979
950,427$ 34,207$ 984,634$
2. 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 $125,000 in 2016 to a final payment of
$169,000 in 2029. The bonds bear interest at variable rates ranging from 2.49 to 3.03%, payable semi-annually.
The bonds are secured by ad-valorem revenues.
39
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 6 - LONG-TERM DEBT (Continued)
2. Miami Shores Village, Florida Refunding General Obligation Bond, Series 2013 (Continued)
Debt service requirements to maturity for the fiscal year ending September 30, 2015 are summarized as follows:
September 30,Principal Interest Total
2016 125,000$ 50,060$ 175,060$
2017 128,000 46,725 174,725
2018 131,000 43,456 174,456
2019 133,000 40,123 173,123
2020 136,000 36,834 172,834
2021-2025 734,000 129,728 863,728
2026-2029 653,000 33,415 686,415
2,040,000$ 380,341$ 2,420,341$
3. Miami Shores Village, Florida Refunding General Obligation Bond, Series 2015
In June 2015, the Village issued the Miami Shores Village, Florida Refunding General Obligation Bond Series
2015, in order to refund the cost of the Miami Shores Village, Florida General Obligation Bonds, Series 2004.
Principal is due annually (through 2033) at various amounts ranging from 173,400 in 2016 to a final payment of
$263,700 in 2033. The bonds bear interest at a rate of 2.54% per annum. The bonds are secured by ad-valorem
revenues. The refunding resulted in an economic gain of approximately $764,000 and a cash flow savings of
approximately $947,000.
Debt service requirements to maturity for the fiscal year ending September 30, 2015 are summarized as follows:
September 30,Principal Interest Total
2016 173,400$ 97,924$ 271,324$
2017 177,300 93,520 270,820
2018 180,800 89,016 269,816
2019 184,100 84,424 268,524
2020 191,400 79,748 271,148
2021-20251,017,900 323,982 1,341,882
2026-20301,160,900 187,884 1,348,784
2031-2033 769,500 39,463 808,963
3,855,300$ 995,961$ 4,851,261$
40
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 6 - LONG-TERM DEBT (Continued)
Long-term debt activity for the fiscal year ended September 30, 2015 was as follows:
Beginning Ending Due
Balance Balance within
10/1/2014 Additions Reductions 9/30/2015 one year
Governmental Activities
Bonds and notes payable:
Promissory Note, Series 2013 1,300,964$ -$ (350,537)$ 950,427$ 359,860$
Refunding General Obligation Bond,
Series 2013 2,163,000 - (123,000) 2,040,000 125,000
General obligation bonds payable - 2004 3,890,000 - (3,890,000) - -
Refunding General Obligation Bond,
Series 2015 - 4,017,600 (162,300) 3,855,300 173,400
Total bonds and notes payable 7,353,964 4,017,600 (4,525,837) 6,845,727 658,260
Other liabilities:
OPEB liability 540,664 92,138 - 632,802 -
Claims payable 340,000 - - 340,000 -
Compensated absences 781,239 629,002 (728,595) 681,646 20,449
Net pension liability 7,869,845 133,177 (128,369) 7,874,653 -
Total other liabilities 9,531,748 854,317 (856,964) 9,529,101 20,449
Governmental activity long-term liabilities 16,885,712$ 4,871,917$ (5,382,801)$ 16,374,828$ 678,709$
Business-type activities
Other liabilities:
OPEB liability 95,999$ 16,360$ -$ 112,359$ -$
Compensated absences 114,544 66,440 (68,364) 112,620 28,155
Business-type activities long-term liabilities 210,543$ 82,800$ (68,364)$ 224,979$ 28,155$
NOTE 7 - INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Interfund balances at September 30, 2015 are as follows:
Interfund Interfund
Receivable Payable
General Fund $ 529,086 $ -
Water and Sewer Fund - 523,164
Non-Major Governmental Funds - 5,922
Total $ 529,086 $ 529,086
Amount due by the Water and Sewer Fund pertains to the capital assets acquired from the Capital Improvement
Fund. The capital assets consist of the construction in progress of the water main and sewer system performed
by the Capital Improvement Fund. Further, the remaining 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.
41
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 7 - INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (Continued)
Interfund transfer activity for the year ended September 30, 2015 was as follows:
Transfers In Transfers Out
General Fund $ 2,297,500 $ 606,500
Excise Tax - 1,897,500
General Trust Fund - 50,000
Sanitation Fund - 350,000
Stormwater Fund - 50,000
Non-Major Governmental Funds 971,570 283,070
Internal Service Funds 90,000 122,000
Total $ 3,359,070 $ 3,359,070
Transfers are used to (a) move revenues from the fund that statute or budget requires to collect them to the
fund the statute or budget requires to expend them and (b) move unrestricted revenues collected in the General
Fund to finance various programs accounted for in other funds in accordance with budgetary authorization.
NOTE 8 - EMPLOYEE RETIREMENT PLANS – PLANS’ REPORTING
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, 2013 (the date of the latest actuarial valuations) consisted of:
General
Employees
Police
Inactive employees:
Retirees and beneficiaries currently receiving benefits
and terminated employees entitled to benefits but not yet receiving them 47 22
Active participants: 65 32
Total members 102 54
42
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 8 - EMPLOYEE RETIREMENT PLANS – PLANS’ REPORTING (Continued)
A. General Employees’ Retirement Plan
Plan Description
The General Employees' Retirement System (the Plan) is a single-employer defined benefit pension plan that
covers all Village employees, except for police, and certain appointed employees. The Plan was established on
January 1, 1957 by the Village Council. On December 31, 1999, the Plan was split between the general
employees and the police officers. The Plan is governed by certain provisions of Chapter 112, Florida Statutes.
The Board of Trustees for the Plan administers the Plan. Plan amendments must be authorized by the Village
Council. The Plan provides retirement and death benefits to Plan members and beneficiaries. The Plan does not
issue a separate financial report.
Deferred Retirement Option Plan
Effective December 5, 2006, current employees may elect to participate in the deferred retirement option plan
(DROP) the first day of the month coincident with or next following the date of normal retirement. Election into the
DROP is voluntary. The employee may elect to participate in the plan for a maximum of 60 months. Once
participation in the DROP commences, such participation constitutes an irrevocable election.
A member's continuous service and accrued benefit under the Plan shall be determined and frozen on the
effective date of the employee's election to participate in the DROP. Additional continuous service or benefits
under the Plan shall not be accrued. No payments are made directly to the employee from the Plan while the
member participates in the drop plan.
During the period of the member's participation in the DROP, the employee's normal retirement benefit shall be
credited to the employee's DROP account. No further contributions to the General Employees' Pension Plan will
be required by the Village nor the employee on behalf of any employee who has elected participation in the
DROP. The member's account is invested as part of the corpus of the system by the Board and is credited with
interest equal to the overall net rate of return on the fund assets during the reporting period during which the
member participates in the DROP.
Upon termination of employment with the Village or 60 months of DROP participation, the balance of the DROP
account will become payable in addition to the monthly normal retirement benefit (which is based on credited
service and average monthly salary on the DROP election date). The DROP account is distributed to the
member in a single lump sum payment or a direct rollover to another qualified retirement plan. If a member dies
before the member's DROP account balance has been paid in full, distribution of the DROP account balance will
be made according to the member's designation. DROP payments to a beneficiary will be in addition to any
retirement benefits payable by the Plan. Under any option and in no event may the total benefit payments to the
member or the beneficiary be less than the member's own accumulated contributions. As of September 30,
2015, there were 6 members in the DROP and their fair value of DROP investment was $ 584,288 which is
included in the Plan’s net position. At the end of September 30, 2015, the Village had no DROP liability.
Funding Requirement
Plan members are required to contribute 6% of their annual covered salary. The Village contributes at actuarially
determined rates that are designed to accumulate sufficient assets to pay benefits when due. Effective May 30,
2012, the Division of Retirement mandated that local governments confer with the Plan’s actuary to select and
maintain contribution method (percentage of payroll or fixed dollar contributions) that best fits the funding
requirements of the Plan. The Plan determined to use the “percentage of payroll contribution” method for the
fiscal year ended September 30, 2015.
43
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 8 - EMPLOYEE RETIREMENT PLANS – PLANS’ REPORTING (Continued)
A. General Employees’ Retirement Plan (Continued)
Funding Requirement
The actual contribution from the Village for active members were actuarially determined using the actuarial
valuation as of October 1, 2013 for the year ended September 30, 2015. The contributions consisted of the
following at September 30, 2015:
Actual
Contribution
Percentage of
Covered Payroll
Village $ 371,453 11.81%
Members $ 188,793 N/A
Net Pension Liability:
Total pension liability $ 13,911,164
Plan fiduciary net position 11,374,066
Net pension liability $ 2,537,098
Plan fiduciary net position as a percentage of total pension liability 81.76%
Significant Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of October 1, 2013 and rolled forward to
the measurement date of September 30, 2015, using the following actuarial assumptions:
Interest rates:
Single discount rate 7.70%
Long-term expected rate of return 5.90%
Mortality table
RP-2000 Combined Healthy Participant Mortality
Table for males and females with mortality
improvement projected to all future years after
2000 using Scale BB.
Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investment was determined using the long-term nominal
building block data less the long-term inflation assumption of 2.5%. The building block long-term real return
projections were develop considering the long-term historic capital market returns, 10-15 year expected capital
market return assumptions, as well as, historical, current, and expected inflation data. Best estimates of
arithmetic real return for each asset class included in the pension plan’s target allocation as of September 30,
2015 are summarized in the following table:
Asset Group
Long-Term Expected Real
Rate of Return
Domestic Equity 2.53%
International Equity 2.53%
Fixed Income 2.53%
44
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 8 - EMPLOYEE RETIREMENT PLANS – PLANS’ REPORTING (Continued)
A. General Employees’ Retirement Plan (Continued)
Discount Rate
A single discount rate of 7.70% was used to measure the total pension liability. This single discount rate was
based on the expected rate of return on pension plan investments of 7.70%. The projection of cash flows used to
determine this single discount rate assumed that plan member contributions will be made at the current
contribution rate and that employer contributions will be made at rates equal to the difference between the total
actuarially determined contribution rates and the member rate. Based on these assumptions, the pensi on plan’s
fiduciary net position was projected to be available to make all projected future benefit payments of current plan
members. Therefore, the long-term expected rate of return on pension plan investments (7.70%) was applied to
all periods of projected benefit payments to determine the total pension liability.
Regarding the sensitivity of the net pension liability to changes in the single discount rate, the following presents
the plan’s net pension liability, calculated using a single discount rate of 7.70%, as well as what the plan’s net
pension liability would be if it were calculated using a single discount rate that is 1-percentage-point lower or 1-
percentage-point higher:
Sensitivity of the Net Pension Liability to the Single Discount Rate Assumption
Current Single Discount
1% Decrease Rate Assumption 1% Increase
6.70% 7.70% 8.70%
$ 4,110,573 $ 2,537,098 $ 1,220,010
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, 2015.
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2015
ASSETS
Cash and cash equivalents $ 236,644
Investments, at fair value 11,112,372
Accrued interest receivable 25,050
Total assets 11,374,066
NET POSITION
Net position restricted for pensions $ 11,374,066
45
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 8 - EMPLOYEE RETIREMENT PLANS – PLANS’ REPORTING (Continued)
A. General Employees’ Retirement Plan (Continued)
STATEMENT OF CHANGES IN PLAN NET POSITION
FISCAL YEAR ENDED SEPTEMBER 30, 2015
ADDITIONS
Contributions $ 560,246
Net investment loss (160,205)
Total additions 400,041
DEDUCTIONS
Pension benefits 655,520
Administrative expenses 15,448
Total deductions 670,968
Decrease (270,927)
Net position restricted for pensions:
Beginning of year 11,644,993
End of year $ 11,374,066
Tax Status
The Internal Revenue Service has determined and informed the Plan by a letter on April 20, 2016, that the Plan
is designed in accordance with applicable sections of the Internal Revenue Code, conditioned upon the adoption
of certain proposed modifications. Further, the Village Sponsor and legal counsel believe that the Plan is
currently designed and being operated in compliance with the applicable requirements of the Code.
B. Police Officers' Retirement Plan
Plan Description
The Police Officers' Retirement System (the Plan) is a single-employer defined benefit pension plan that covers
substantially all of the Village's certified police officers. The Plan was established as of the effective date of
January 1, 1957 by the Village Council. It was amended on December 31, 1999, to split the Plan between
General Employees and Police Officers. The Plan is also governed by certain provisions of Chapter 185, Florida
Statutes. The Board of Trustees for the Plan administers the Plan. Plan amendments must be authorized by the
Village Council. The Plan provides retirement, disability, and death benefits to Plan members and beneficiaries.
The Plan does not issue a separate financial report.
Deferred Retirement Option Plan
Effective May 5, 1998, subsequent to the approval from the State of Florida, Division of Retirement, current
employees with at least 25 but not more than 30 years of continuous service as a member of the plan may elect
to participate in the deferred retirement option plan (DROP) for sworn police personnel. The employee may elect
to participate in the plan for a maximum of 60 months before the employee attains 30 years of continuous
service. A member's continuous service and accrued benefit under the plan shall be determined and frozen on
the effective date of the employee's election to participate in the DROP. Additional continuous service or benefits
under the plan shall not be accrued, except for cost-of-living adjustments provided to retirees under the plan. No
payments are made directly to the employee from the pension plan while the member participates in the drop
plan.
During the period of the member's participation in the DROP, the employee's normal retirement benefit shall be
credited to the employee's DROP account. No further contributions to the police officers' retirement system will
be required by the Village nor the employee on behalf of any employee who has elected participation in the
DROP. The member's account is invested as part of the corpus of the system by the Board and is credited with
interest equal to the overall net rate of return on the fund assets during the reporting period during which the
member participates in the DROP.
46
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 8 - EMPLOYEE RETIREMENT PLANS – PLANS’ REPORTING (Continued)
B. Police Officers' Retirement Plan (Continued)
Deferred Retirement Option Plan (Continued)
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. As of September 30, 2015, there were 4 members in the DROP and
their fair value of DROP investment was $ 361,322 which is included in the Plan’s net position. At the end of
September 30, 2015, the Village had no DROP liability.
Funding Requirement
Plan members are required to contribute 9% of their annual covered salary. The Village contributes at actuarially
determined rates that are designed to accumulate sufficient assets to pay benefits when due. Effective May 30,
2012, the Division of Retirement mandated that local governments confer with the P lan’s actuary to select and
maintain contribution method (percentage of payroll or fixed dollar contributions) that best fits the funding
requirements of the Plan. The Plan determined to use the “percentage of payroll contribution” method for the
fiscal year ended September 30, 2015.
Pursuant to Chapter 185, Florida Statutes, a portion of all insurance premium tax monies received in excess of
the threshold of $60,386 are to be utlized to provide future minimum extra benefits and may not be used to
reduce or offset the contribution requirements of the employer.
The actual contribution from the Village for active members were actuarially determined using the actuarial
valuation as of October 1, 2013 for the year ended September 30, 2015. The contributions consisted of the
following at September 30, 2015:
Actual
Contribution
Percentage of
Covered Payroll
Village $ 1,249,668 62.23%
State of Florida __ _ - -
Total contributions from
Village and State of Florida 1,249,668 62.23%
Members $ 180,728 N/A
Net Pension Liability:
Total pension liability $ 26,177,937
Plan fiduciary net position 19,054,943
Net pension liability $ 7,122,994
Plan fiduciary net position as a percentage of total pension liability 72.79%
47
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 8 - EMPLOYEE RETIREMENT PLANS – PLANS’ REPORTING (Continued)
B. Police Officers' Retirement Plan (Continued)
Significant Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of October 1, 2014 and rolled forward to
the measurement date of September 30, 2015, using the following actuarial assumptions:
Interest rates:
Single discount rate 7.60%
Long-term expected rate of return 5.65%
Mortality table
RP-2000 Combined Healthy Participant Mortality
Table for males and females with mortality
improvement projected to all future years after
2000 using Scale BB.
Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investment was determined using the long-term nominal
building block data less the long-term inflation assumption of 2.5%. The building block long-term real return
projections were develop considering the long-term historic capital market returns, 10-15 year expected capital
market return assumptions, as well as, historical, current, and expected inflation data. Best estimates of
arithmetic real return for each asset class included in the pension plan’s target all ocation as of September 30,
2015 are summarized in the following table:
Asset Group
Long-Term Expected Real
Rate of Return
Domestic Equity 2.53%
International Equity 2.53%
Fixed Income 2.53%
Discount Rate
A single discount rate of 7.60% was used to measure the total pension liability. This single discount rate was
based on the expected rate of return on pension plan investments of 7.60%. The projection of cash flows used to
determine this single discount rate assumed that plan member contributions will be made at the current
contribution rate and that employer contributions will be made at rates equal to the difference between the total
actuarially determined contribution rates and the member rate. Based on these assumptions, the pension plan’s
fiduciary net position was projected to be available to make all projected future benefit payments of current plan
members. Therefore, the long-term expected rate of return on pension plan investments (7.60%) was applied to
all periods of projected benefit payments to determine the total pension liability.
Regarding the sensitivity of the net pension liability to changes in the single discount rate, the following presents
the plan’s net pension liability, calculated using a single discount rate of 7.60%, as well as what the plan’s net
pension liability would be if it were calculated using a single discount rate that is 1-percentage-point lower or 1-
percentage-point higher:
Sensitivity of the Net Pension Liability to the Single Discount Rate Assumption
Current Single Discount
1% Decrease Rate Assumption 1% Increase
6.60% 7.60% 8.60%
$ 10,563,428 $ 7,122,994 $ 4,299,660
48
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 8 - EMPLOYEE RETIREMENT PLANS – PLANS’ REPORTING (Continued)
B. Police Officers' Retirement Plan (Continued)
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, 2015.
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2015
ASSETS
Cash and cash equivalents $ 606,426
Investments, at fair value 18,367,001
Other Receivables 32,922
Accrued interest receivable 48,594
Total assets 19,054,943
NET POSITION
Net position restricted for pensions $19,054,943
Tax Status
The Internal Revenue Service has determined and informed the Plan by a letter on April 20, 2016, that the Plan
is designed in accordance with applicable sections of the Internal Revenue Code, conditioned upon the adoption
of certain proposed modifications. Further, the Village Sponsor and legal counsel believe that the Plan is
currently designed and being operated in compliance with the applicable requirements of the Code.
STATEMENT OF CHANGES IN PLAN NET POSITION
FISCAL YEAR ENDED SEPTEMBER 30, 2015
ADDITIONS
Contributions $ 1,430,396
Net investment loss (201,097)
Total additions 1,229,299
DEDUCTIONS
Pension benefits 941,093
Administrative expenses 11,783
Total deductions 952,876
Increase 276,423
Net position restricted for pensions:
Beginning of year 18,778,520
End of year $19,054,943
49
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 9 - EMPLOYEE RETIREMENT PLANS – VILLAGE’S REPORTING
As described in Note 8, 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 following details the disclosures as required by GASB Statement No. 68.
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 Pla n.
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, 2013 (the date of the latest actuarial valuations) consisted of:
General
Employees
Police
Inactive employees:
Retirees and beneficiaries currently receiving benefits
and terminated employees entitled to benefits but not yet receiving them 47 22
Active participants: 65 32
Total members 102 54
50
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 9 - EMPLOYEE RETIREMENT PLANS – VILLAGE’S REPORTING (Continued)
A. General Employees’ Retirement Plan
Plan Description
The General Employees' Retirement System (the Plan) is a single-employer defined benefit pension plan that
covers all Village employees, except for police, and certain appointed employees. The Plan was established on
January 1, 1957 by the Village Council. On December 31, 1999, the Plan was split between the general
employees and the police officers. The Plan is governed by certain provisions of Chapter 112, Florida Statutes.
The Board of Trustees for the Plan administers the Plan. Plan amendments must be authorized by the Village
Council. The Plan provides retirement and death benefits to Plan members and beneficiaries. The Plan does not
issue a separate financial report.
Deferred Retirement Option Plan
Effective December 5, 2006, current employees may elect to participate in the deferred retirement option plan
(DROP) the first day of the month coincident with or next following the date of normal retirement. Election into the
DROP is voluntary. The employee may elect to participate in the plan for a maximum of 60 months. Once
participation in the DROP commences, such participation constitutes an irrevocable election.
A member's continuous service and accrued benefit under the Plan shall be determined and frozen on the
effective date of the employee's election to participate in the DROP. Additional continuous service or benefits
under the Plan shall not be accrued. No payments are made directly to the employee from the Plan while the
member participates in the drop plan.
During the period of the member's participation in the DROP, the employee's normal retirement benefit shall be
credited to the employee's DROP account. No further contributions to the General Employees' Pension Plan will
be required by the Village nor the employee on behalf of any employee who has elected participation in the
DROP. The member's account is invested as part of the corpus of the system by the Board and is credited with
interest equal to the overall net rate of return on the fund assets during the reporting period during which the
member participates in the DROP.
Upon termination of employment with the Village or 60 months of DROP participation, the balance of the DROP
account will become payable in addition to the monthly normal retirement benefit (which is based on credited
service and average monthly salary on the DROP election date). The DROP account is distributed to the
member in a single lump sum payment or a direct rollover to another qualified retirement plan. If a member dies
before the member's DROP account balance has been paid in full, distribution of the DROP account balance will
be made according to the member's designation. DROP payments to a beneficiary will be in addition to any
retirement benefits payable by the Plan. Under any option and in no event may the total benefit payments to the
member or the beneficiary be less than the member's own accumulated contributions. As of September 30,
2014, there were 2 members in the DROP and their fair value of DROP investment was $ 638,011 which is
included in the Plan’s net position. At the end of September 30, 2014, the Village had no DROP liability.
Funding Requirement
Plan members are required to contribute 6% of their annual covered salary. The Village contributes at actuarially
determined rates that are designed to accumulate sufficient assets to pay benefits when due. Effective May 30,
2012, the Division of Retirement mandated that local governments confer with the Plan’s actuary to select and
maintain contribution method (percentage of payroll or fixed dollar contributions) that best fits the funding
requirements of the Plan. The Plan determined to use the “percentage of payroll contribution” method for the
fiscal year ended September 30, 2015.
51
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 9 - EMPLOYEE RETIREMENT PLANS – VILLAGE’S REPORTING (Continued)
A. General Employees’ Retirement Plan (Continued)
Funding Requirement
The actual contribution from the Village for active members were actuarially determined using the actuarial
valuation as of October 1, 2011 for the year ended September 30, 2014. The contributions consisted of the
following at September 30, 2014:
Actual
Contribution
Percentage of
Covered Payroll
Village $ 261,966 8.75%
Members $ 179,680 N/A
Net Pension Liability:
The Village's net pension liability was measured as of September 30, 2014, and the total pension liability used to
calculate the net pension liability was determined by the October 1, 2013 actuarial valuation.
Significant Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of October 1, 2013, using the following
actuarial assumptions:
Interest rates:
Single discount rate 7.70%
Long-term expected rate of return 7.70%
Mortality table
RP-2000 Combined Healthy Participant Mortality
Table for males and females with mortality
improvement projected to all future years after
2000 using Scale BB.
Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investment was determined using the long-term nominal
building block data less the long-term inflation assumption of 2.5%. The building block long-term real return
projections were develop considering the long-term historic capital market returns, 10-15 year expected capital
market return assumptions, as well as, historical, current, and expected inflation data. Best estimates of
arithmetic real return for each asset class included in the pension plan’s target all ocation as of September 30,
2014 are summarized in the following table:
Asset Group
Long-Term Expected Real
Rate of Return
Domestic Equity 7.5%
International Equity 8.5%
Domestic Bonds 2.5%
International Bonds 3.5%
Real Estate 4.5%
52
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 9 - EMPLOYEE RETIREMENT PLANS – VILLAGE’S REPORTING (Continued)
A. General Employees’ Retirement Plan (Continued)
Discount Rate
A single discount rate of 7.70% was used to measure the total pension liability. This single discount rate was
based on the expected rate of return on pension plan investments of 7.70%. The projection of cash flows used to
determine this single discount rate assumed that plan member contributions will be made at the current
contribution rate and that employer contributions will be made at rates equal to the difference between the total
actuarially determined contribution rates and the member rate. Based on these assumptions, the pension plan’s
fiduciary net position was projected to be available to make all projected future benefit payments of current plan
members. Therefore, the long-term expected rate of return on pension plan investments (7.70%) was applied to
all periods of projected benefit payments to determine the total pension liability.
Changes in Net Pension Liability
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability
(a)-(b)
Reporting period ending at September 30, 2013 12,363,128$ 10,918,492$ 1,444,636$
Service Cost 308,880 - 308,880
Interest 960,279 - 960,279
Difference between actual & expected experience (7,788) - (7,788)
Contributions - Employer - 261,966 (261,966)
Contributions - Member - 179,680 (179,680)
Benefit Payments (373,038) - (373,038)
Refunds (28,655) - (28,655)
Net Investment Income - 715,959 (715,959)
Benefit Payments - (373,038) 373,038
Refunds - (28,655) 28,655
Administrative Expense - (29,411) 29,411
Reporting period ending at September 30, 2014 13,222,806$ 11,644,993$ 1,577,813$
Plan Fiduciary Net Position as a Percentage of Total Pension Liability 88.07%
Covered Employee Payroll 2,994,667$
Net Pension Liability as a Percentage of Covered Employee Payroll 52.69%
Increase (Decrease)
Sensitivity of the Net Pension Liability to the Single Discount Rate Assumption
The following presents the plan’s net pension liability, calculated using a single discount rate of 7.70%, as well as
what the plan’s net pension liability would be if it were calculated using a single discount rate that is 1-
percentage-point lower or 1-percentage-point higher:
Current Single Discount
1% Decrease Rate Assumption 1% Increase
6.70% 7.70% 8.70%
$ 3,110,860 $ 1,577,813 $ 295,996
53
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 9 - EMPLOYEE RETIREMENT PLANS – VILLAGE’S REPORTING (Continued)
A. General Employees’ Retirement Plan (Continued)
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, 2014.
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2014
ASSETS
Cash and cash equivalents $ 265,234
Investments, at fair value 11,339,552
Other receivables 12,498
Accrued interest receivable 27,709
Total assets 11,644,993
NET POSITION
Net position restricted for pensions $ 11,644,993
STATEMENT OF CHANGES IN PLAN NET POSITION
FISCAL YEAR ENDED SEPTEMBER 30, 2014
ADDITIONS
Contributions $ 441,646
Net investment income 715,959
Total additions 1,157,605
DEDUCTIONS
Pension benefits 401,693
Administrative expenses 29,411
Total deductions 431,104
Increase 726,501
Net position restricted for pensions:
Beginning of year – as restated 10,918,492
End of year $ 11,644,993
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
For the year ended September 30, 2015, the Village will recognize pension expense of $301,024. At September
30, 2015, the Village reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Deferred
Outflows
of Resources
Deferred
Inflows
of Resources
Net Deferred
Outflows of
Resources
Difference between expected and actual
experience -$ 6,018$ (6,018)$
Changes in assumptions - - -
Net difference between projected and actual
earnings on pension plan investments 100,137 - 100,137
Total 100,137$ 6,018$ 94,119$
54
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 9 - EMPLOYEE RETIREMENT PLANS – VILLAGE’S REPORTING (Continued)
A. General Employees’ Retirement Plan (Continued)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense as follows:
Fiscal year
ending
September 30,
Net Deferred
Outflows of
Resources
2016 23,264$
2017 23,264
2018 23,264
2019 24,327
2020 -
Thereafter -
Total 94,119$
B. Police Officers' Retirement Plan
Plan Description
The Police Officers' Retirement System (the Plan) is a single-employer defined benefit pension plan that covers
substantially all of the Village's certified police officers. The Plan was established as of the effective date of
January 1, 1957 by the Village Council. It was amended on December 31, 1999, to split the Plan between
General Employees and Police Officers. The Plan is also governed by certain provisions of Chapter 185, Florida
Statutes. The Board of Trustees for the Plan administers the Plan. Plan amendments must be authorized by the
Village Council. The Plan provides retirement, disability, and death benefits to Plan members and beneficiaries.
The Plan does not issue a separate financial report.
Deferred Retirement Option Plan
Effective May 5, 1998, subsequent to the approval from the State of Florida, Division of Retirement, current
employees with at least 25 but not more than 30 years of continuous service as a member of the plan may elect
to participate in the deferred retirement option plan (DROP) for sworn police personnel. The employee may elect
to participate in the plan for a maximum of 60 months before the employee attains 30 years of continuous
service. A member's continuous service and accrued benefit under the plan shall be determined and frozen on
the effective date of the employee's election to participate in the DROP. Additional continuous service or benefits
under the plan shall not be accrued, except for cost-of-living adjustments provided to retirees under the plan. No
payments are made directly to the employee from the pension plan while the member participates in the drop
plan.
During the period of the member's participation in the DROP, the employee's normal retirement benefit shall be
credited to the employee's DROP account. No further contributions to the police officers' retirement system will
be required by the Village nor the employee on behalf of any employee who has elected participation in the
DROP. The member's account is invested as part of the corpus of the system by the Board and is credited with
interest equal to the overall net rate of return on the fund assets during the reporting period during which the
member participates in the DROP.
55
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 9 - EMPLOYEE RETIREMENT PLANS – VILLAGE’S REPORTING (Continued)
B. Police Officers' Retirement Plan (Continued)
Deferred Retirement Option Plan (Continued)
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. As of September 30, 2014, there were 4 members in the DROP and
their fair value of DROP investment was $ 503,705 which is included in the Plan’s net position. At the end of
September 30, 2014, total liabilities for the DROP were $377,542.
Funding Requirement
Plan members are required to contribute 9% of their annual covered salary. The Village contributes at actuarially
determined rates that are designed to accumulate sufficient assets to pay benefits when due. Effective May 30,
2012, the Division of Retirement mandated that local governments confer with the Plan’s actuary to select and
maintain contribution method (percentage of payroll or fixed dollar contributions) that best fits the funding
requirements of the Plan. The Plan determined to use the “percentage of payroll contribution” method for the
fiscal year ended September 30, 2014.
Pursuant to Chapter 185, Florida Statutes, a portion of all insurance premium tax monies received in excess of
the threshold of $60,386 are to be utlized to provide future minimum extra benefits and may not be used to
reduce or offset the contribution requirements of the employer. The excess of insurance premium tax monies
allocated to pay for additional beneifts in this plan amounted to $113,175 for the fiscal year ended September 30,
2014 and is inluded in state contributions on the statements of changes in fiduciary net position.
The actual contribution from the Village for active members were actuarially determined using the actuarial
valuation as of October 1, 2012 for the year ended September 30, 2014. The contributions consisted of the
following at September 30, 2014:
Actual
Contribution
Percentage of
Covered Payroll
Village $ 1,207,161 47.49%
State of Florida __ _ 173,561 1.19%
Total contributions from
Village and State of Florida 1,402,581 48.68%
Members $ 205,660 N/A
Net Pension Liability:
The Village's net pension liability was measured as of September 30, 2014, and the total pension liability used to
calculate the net pension liability was determined by the October 1, 2013 actuarial valuation.
Significant Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of October 1, 2013, using the following
actuarial assumptions:
56
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 9 - EMPLOYEE RETIREMENT PLANS – VILLAGE’S REPORTING (Continued)
B. Police Officers' Retirement Plan (Continued)
Significant Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of October 1, 2013, using the following
actuarial assumptions:
Interest rates:
Single discount rate 7.70%
Long-term expected rate of return 7.70%
Mortality table
RP-2000 Combined Healthy Participant Mortality
Table for males and females with mortality
improvement projected to all future years after
2000 using Scale BB.
Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investment was determined using the long-term nominal
building block data less the long-term inflation assumption of 2.5%. The building block long-term real return
projections were develop considering the long-term historic capital market returns, 10-15 year expected capital
market return assumptions, as well as, historical, current, and expected inflation data. Best estimates of
arithmetic real return for each asset class included in the pension plan’s target allocation as of September 30,
2014 are summarized in the following table:
Asset Group
Long-Term Expected Real
Rate of Return
Domestic Equity 7.5%
International Equity 8.5%
Domestic Bonds 2.5%
International Bonds 3.5%
Real Estate 4.5%
Discount Rate
A single discount rate of 7.70% was used to measure the total pension liability. This single discount rate was
based on the expected rate of return on pension plan investments of 7.70%. The projection of cash flows used to
determine this single discount rate assumed that plan member contributions will be made at the current
contribution rate and that employer contributions will be made at rates equal to the difference between the total
actuarially determined contribution rates and the member rate. Based on these assumptions, the pension plan’s
fiduciary net position was projected to be available to make all projected future benefit payments of current plan
members. Therefore, the long-term expected rate of return on pension plan investments (7.70%) was applied to
all periods of projected benefit payments to determine the total pension liability.
57
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 9 - EMPLOYEE RETIREMENT PLANS – VILLAGE’S REPORTING (Continued)
B. Police Officers' Retirement Plan (Continued)
Changes in Net Pension Liability
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability
(a)-(b)
Reporting period ending at September 30, 2013 23,668,697$ 17,243,488$ 6,425,209$
Service Cost 672,275 - 672,275
Interest 1,796,408 - 1,796,408
Difference between actual & expected experience 5,315 - 5,315
Contributions - Employer - 1,207,161 (1,207,161)
Contributions - Member - 173,561 (173,561)
Contributions - Non-Employer Contributing Entity - 205,660 (205,660)
Benefit Payments (1,180,510) - (1,180,510)
Refunds 113,175 - 113,175
Net Investment Income - 1,168,552 (1,168,552)
Benefit Payments - (1,180,510) 1,180,510
Administrative Expense - (39,392) 39,392
Reporting period ending at September 30, 2014 25,075,360$ 18,778,520$ 6,296,840$
Plan Fiduciary Net Position as a Percentage of Total Pension Liability 74.89%
Covered Employee Payroll 2,285,111$
Net Pension Liability as a Percentage of Covered Employee Payroll 275.56%
Increase (Decrease)
Sensitivity of the Net Pension Liability to the Single Discount Rate Assumption
The following presents the plan’s net pension liability, calculated using a single discount rate of 7.70%, as well as
what the plan’s net pension liability would be if it were calculated using a single discount rate that is 1-
percentage-point lower or 1-percentage-point higher:
Current Single Discount
1% Decrease Rate Assumption 1% Increase
6.70% 7.70% 8.70%
$ 9,536,590 $ 6,296,840 $ 3,625,669
58
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 9 - EMPLOYEE RETIREMENT PLANS – VILLAGE’S REPORTING (Continued)
B. Police Officers' Retirement Plan (Continued)
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, 2014.
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2014
ASSETS
Cash and cash equivalents $ 227,026
Investments, at fair value 18,771,407
Other Receivables 107,191
Accrued interest receivable 50,438
Total assets 19,159,062
LIABILITIES AND NET POSITION
DROP liability 377,542
Net position restricted for pensions $18,778,520
STATEMENT OF CHANGES IN PLAN NET POSITION
FISCAL YEAR ENDED SEPTEMBER 30, 2014
ADDITIONS
Contributions $ 1,586,382
Net investment income 1,168,552
Total additions 2,754,934
DEDUCTIONS
Pension benefits 1,180,510
Administrative expenses 39,392
Total deductions 1,219,902
Increase 1,535,032
Net position restricted for pensions:
Beginning of year – as restated 17,243,488
End of year $18,778,520
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
For the year ended September 30, 2015, the Village will recognize pension expense of $1,109,308. At
September 30, 2015, the Village reported deferred inflows of resources related to pensions from the following
sources:
Deferred Inflows
of Resources
Difference between expected and actual
experience 4,399$
Changes in assumptions -
Net difference between projected and actual
earnings on pension plan investments 138,645
Total 143,044$
59
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 9 - EMPLOYEE RETIREMENT PLANS – VILLAGE’S REPORTING (Continued)
B. Police Officers' Retirement Plan (Continued)
Amounts reported as deferred inflows of resources related to pensions will be recognized in pension expense as
follows:
Fiscal year
ending
September 30,
Net Deferred
Inflows of
Resources
2016 35,577$
2017 35,577
2018 35,577
2019 35,578
2020 735
Thereafter -
Total 143,044$
NOTE 10 - 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, 2015, there were two 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, 2015 are as follows:
2015 2014 2013
Unpaid claims, beginning $340,000 $464,136 $464,136
Incurred claims (including IBNR’s) - - -
Claim payments and disbursements - (124,136) -
Unpaid claims, ending $340,000 $340,000 $464,136
NOTE 11 - COMMITMENTS AND CONTINGENCIES
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.
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.
60
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 12 - 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 opti on 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 pay for the costs of health insurance, even if retired officers have coverage through a different health
plan. Eligibility is conditioned upon demonstration that the Officer has health insurance coverage. The benefit
stops at age 65.
This benefit is partially funded during active employment with the Village – Police officers contribute $4.05 per
pay period towards future payments from the Village. In the event of termination prior to 10 years of service, the
accumulated employee contributions are forfeited. In the event of termination after 10 years of service but prior to
OPEB eligibility, the member may request a refund of the employee contribution and forfeit the right to future
coverage. The employee contributions are not held in a qualifying trust or similar arrangement.
Disabled Retirees Premium Contributions
Members eligible for disability retirement are subject to premium payments the same as all regular retirees. An
exception is made to Police Officers who had sustained catastrophic injuries in the line of duty. Premiums for
health coverage of 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.
61
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 12 - OTHER POST EMPLOYMENT BENEFITS
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 $178,119.
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 2015 is as follows:
Annual required contribution (ARC) $ 176,290
Interest on net OPEB obligation 27,058
Adjustment to annual required contribution (25,229)
Annual pension cost (APC) 178,119
Contributions made 69,621
Increase in net OPEB obligation 108,498
Net OPEB obligationt, beginning of year 636,663
Net OPEB obligation, end of year $ 745,161
Annual OPEB Costs
Fiscal Year
Ending
September 30,
Annual
OPEB
Cost
Actual
Contribution
Percentage
Contributed
Net
OPEB
Obligation
2013 $157,459 $45,486 28.89% $529,387
2014 167,477 60,201 28.89% 636,663
2015 178,119 69,621 39.09% 745,161
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.
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%
62
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO THE BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
NOTE 13 – RESTATEMENT
The implementation of Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and
Financial Reporting for Pensions – an amendment of GASB Statement No. 27, as stated in Note 1, resulted in a
restatement of the beginning net position for the government activities as of October 1, 2014.
Beginning net position, as previously recorded $ 29,953,601
Record opening net pension liability per GASB Statement No. 68 (7,869,845)
Record opening deferred outflows per GASB Statement No. 68 1,642,688
Record opening net pension asset per GASB Statement No. 68 (462,359)
Beginning net position, as restated $ 23,264,085
NOTE 14 – SUBSEQUENT EVENTS
Subsequent to year end, the Village entered into a loan agreement in the amount of $5,000,000 with the Florida
Local Government Finance Commission Pooled Commercial Paper Loan Program. The purpose of this loan is to
finance various capital improvements within the Village, including the water main and sewer system project
construction in the downtown area.
The Village purchased the Archdiocese property in April of 2016 for approximately $1,100,000 for future use as a
Village facility.
REQUIRED SUPPLEMENTARY INFORMATION
MIAMI SHORES VILLAGE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes:
Property taxes 6,321,800$ 6,321,800$ 6,383,317$ 61,517$
Licenses and permits:
Business licenses - Village 80,000 80,000 86,463 6,463
Business licenses - County 22,000 22,000 24,233 2,233
Building permits 700,000 700,000 912,670 212,670
Certificate of reoccupancy 13,000 13,000 13,500 500
Other licenses and permits 149,000 149,000 200,569 51,569
Total licenses and permits 964,000 964,000 1,237,435 273,435
Intergovernmental revenues:
State shared revenues:
State revenue sharing 245,000 245,000 256,553 11,553
Local government half cent sales tax 800,000 800,000 805,383 5,383
Other 850 850 865 15
Total intergovernmental revenues 1,045,850 1,045,850 1,062,801 16,951
Charges for services:
Physical environment 42,300 42,300 51,967 9,667
Police extra duty 384,000 384,000 413,807 29,807
Landscape maintenance 19,900 19,900 24,771 4,871
Culture/recreation 1,479,923 1,479,923 1,568,844 88,921
Total charges for services 1,926,123 1,926,123 2,059,389 133,266
Fines and forfeitures:
Court fines and costs 84,000 84,000 58,307 (25,693)
School crossing guards 21,000 21,000 18,149 (2,851)
Other 359,000 359,000 423,321 64,321
Total fines and forfeitures 464,000 464,000 499,777 35,777
Miscellaneous:
Rents 205,000 205,000 355,077 150,077
Other 72,750 72,750 94,368 21,618
Total miscellaneous 277,750 277,750 449,445 171,695
Interest 5,700 5,700 14,281 8,581
Total revenues 11,005,223$ 11,005,223$ 11,706,445$ 701,222$
(Continued)
Budgeted Amounts
FISCAL YEAR ENDED SEPTEMBER 2015
See notes to budgetary comparison schedule
63
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 9,547$ 9,547$ 7,333$ 2,214$
Village attorney 167,850 282,850 274,023 8,827
Village manager 233,102 233,102 225,236 7,866
Village clerk 164,504 164,504 147,080 17,424
Code enforcement 175,099 177,599 174,365 3,234
Building department 486,573 541,573 535,259 6,314
Planning and zoning 175,381 175,381 155,562 19,819
Finance 518,740 518,740 476,459 42,281
Other general government 1,027,295 1,104,741 920,239 184,502
Total general government 2,958,091 3,208,037 2,915,556 292,481
Public safety:
Law enforcement 6,393,758 6,243,824 5,997,475 246,349
School crossing guard 41,804 41,804 40,122 1,682
Total public safety 6,435,562 6,285,628 6,037,597 248,031
Public works:
Parks 318,493 318,493 310,205 8,288
Street maintenance 474,364 460,364 458,692 1,672
Public works administration 362,774 362,774 344,122 18,652
Recreation maintenance 148,838 162,838 159,583 3,255
Total public services 1,304,469 1,304,469 1,272,602 31,867
Culture and recreation:
Recreation 2,203,277 2,204,827 2,163,231 41,596
Library 414,824 414,824 386,000 28,824
Total culture and recreation 2,618,101 2,619,651 2,549,231 70,420
Total expenditures 13,316,223 13,417,785 12,774,986 642,799
Deficiency of revenues over expenditures (2,311,000) (2,412,562) (1,068,541) 58,423
Other financing sources (uses)
Transfers in 2,917,500 2,917,500 2,297,500 (620,000)
Transfers out (606,500) (606,500) (606,500) -
Appropriations from prior year fund balance - 101,562 - (101,562)
Total other financing sources (uses)2,311,000 2,412,562 1,691,000 (721,562)$
Net change in fund balance - - 622,459
Fund balance, beginning of year - - 7,966,437
Fund balance, end of year -$ -$ 8,588,896$
FISCAL YEAR ENDED SEPTEMBER 2015
Budgeted Amounts
See notes to budgetary comparison schedule
64
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Public service taxes 2,217,500$ 2,217,500$ 2,199,772$ (17,728)$
Total revenues 2,217,500 2,217,500 2,199,772 (17,728)
Other financing uses
Transfers out (2,517,500) (2,517,500) (1,897,500) 620,000
Appropriations from prior year fund balance 300,000 300,000 - (300,000)
Total other financing uses (2,217,500) (2,217,500) (1,897,500) 320,000$
Net change in fund balance - - 302,272
Fund balances, beginning - - 686,057
Fund balances, ending -$ -$ 988,329$
MIAMI SHORES VILLAGE, FLORIDA
BUDGETARY COMPARISON SCHEDULES
SPECIAL REVENUE FUND - EXCISE TAX
FISCAL YEAR ENDED SEPTEMBER 30, 2015
See notes to budgetary comparison schedules
65
66
MIAMI SHORES VILLAGE, FLORIDA
NOTE TO BUDGETARY COMPARISON SCHEDULES
FISCAL YEAR ENDED SEPTEMBER 30, 2015
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.
a) 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.
b) Two public hearings are conducted to obtain taxpayer comments as required by Truth in Millage (TRIM)
legislation.
c) 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.
d) 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.
e) Budgeted amounts are as originally adopted or as amended. There were supplemental appropriations in
the General Fund totaling $101,562, during the fiscal year ended September 30, 2015 for funding
outstanding obligations and unanticipated expenses
f) Unencumbered appropriations lapse at year end.
Excesses of expenditures over appropriations
For the year ended September 30, 2015, expenditures exceeded appropriations in the Debt Service Fund by $213,117.
These over-expenditures were funded by greater than anticipated revenues or available fund balance.
Fiscal year ending September 30,2014
Total Pension Liability
Service Cost 308,880$
Interest 960,279
Benefit Changes -
Difference between actual & expected experience (7,788)
Assumption Changes -
Benefit Payments (373,038)
Refunds (28,655)
Other -
Net Change in Total Pension Liability 859,678
Total Pension Liability - Beginning 12,363,128
Total Pension Liability - Ending (a)13,222,806$
Plan Fiduciary Net Position
Contributions - Employer 261,966$
Contributions - Member 179,680
Net Investment Income 715,959
Benefit Payments (373,038)
Refunds (28,655)
Administrative Expense (29,411)
Other -
Net Change in Plan Fiduciary Net Position 726,501
Plan Fiduciary Net Position - Beginning 10,918,492
Plan Fiduciary Net Position - Ending (b) 11,644,993$
Net Pension Liability - Ending (a) - (b)1,577,813$
Plan Fiduciary Net Position as a Percentage of Total Pension Liability 88.07%
Covered Employee Payroll 1 2,994,667$
Net Pension Liability as a Percentage of Covered Employee Payroll 52.69%
1
Thisschedule is presented to illustratetherequirement to showinformationfor 10 years.However,
untilafull10-yeartrend is compiled,pension plans shouldpresentinformationforthoseyearsfor
which information is available.
CoveredEmployeePayrollwascalculated by dividingthetotalmembercontributionsforthefiscal
year by the member contribution rate of 6%.
MIAMI SHORES VILLAGE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
GENERAL EMPLOYEES' RETIREMENT SYSTEM (VILLAGE'S REPORTING)
(as required by GASB Statement No. 68)
67
Fiscal year ending September 30,2015 2014
Total Pension Liability
Service Cost 325,868$ 308,880$
Interest 1,018,010 960,279
Benefit Changes - -
Difference between actual & expected experience - (7,788)
Assumption Changes - -
Benefit Payments (655,520) (373,038)
Refunds - (28,655)
Other - -
Net Change in Total Pension Liability 688,358 859,678
Total Pension Liability - Beginning 13,222,806 12,363,128
Total Pension Liability - Ending (a)13,911,164$ 13,222,806$
Plan Fiduciary Net Position
Contributions - Employer 371,453$ 261,966$
Contributions - Member 188,793 179,680
Net Investment Income (160,205) 715,959
Benefit Payments (655,520) (373,038)
Refunds - (28,655)
Administrative Expense (15,448) (29,411)
Other - -
Net Change in Plan Fiduciary Net Position (270,927) 726,501
Plan Fiduciary Net Position - Beginning 11,644,993 10,918,492
Plan Fiduciary Net Position - Ending (b) 11,374,066$ 11,644,993$
Net Pension Liability - Ending (a) - (b)2,537,098$ 1,577,813$
Plan Fiduciary Net Position as a Percentage of Total Pension Liability 81.76%88.07%
Covered Employee Payroll 1 3,146,550$ 2,994,667$
Net Pension Liability as a Percentage of Covered Employee Payroll 80.63%52.69%
1
Thisschedule is presented to illustratetherequirement to showinformationfor 10 years.However,untila
full10-yeartrend is compiled,pensionplansshouldpresentinformationforthoseyearsforwhich
information is available.
(as required by GASB Statement No. 67)
MIAMI SHORES VILLAGE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
GENERAL EMPLOYEES' RETIREMENT SYSTEM (PLAN'S REPORTING)
CoveredEmployeePayrollwascalculated by dividingthetotalmembercontributionsforthefiscalyear by
the member contribution rate of 6%.
68
Fiscal
Year Actuarially Contribution Actual Contribution
Ending Determined Actual Deficiency Covered as a % of
September 30,Contribution Contribution (Excess) Payroll1 Covered Payroll
2015 371,453$ 371,453$ -$ 3,146,550$ 11.81%
2014 261,966 261,966 - 2,994,667 8.75%
1
Valuation Date 10/1/2013
Measurement Date:9/30/2015
Notes
Methods and Assumptions Used to Determine Contribution Rates:
Entry Age Normal
Amortization Method Level Dollar, Closed
Remaining Amortization Period 20 years
Asset Valuation Method 5-year smoothed market
Inflation 4.0%
Salary Increases 5.5%
Investment Rate of Return 7.7%
Retirement Age
Mortality
Notes to the Schedule of Contributions
MIAMI SHORES VILLAGE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS
GENERAL EMPLOYEES' RETIREMENT SYSTEM
CoveredEmployeePayrollwascalculated by dividingthetotalmembercontributionsforthefiscalyear
by the member contribution rate of 6%.
Thisschedule is presented to illustratetherequirement to showinformationfor 10 years.However,
untilafull10-yeartrend is compiled,pensionplansshouldpresentinformationforthoseyearsforwhich
information is available.
Experience-basedtable of ratesthatarespecific to thetype of
eligibility condition
RP-2000CombinedHealthyParticipantMortalityTableformales and
femaleswithmortalityimprovementprojected to allfutureyearsafter
2000 using Scale BB.
Actuarial Cost Method
Actuariallydeterminedcontributionratesarecalculated asof October
1,which is twoyearsprior to the endof thefiscalyear in which
contributions are reported.
69
Fiscal year ending
September 30,
Annual Money-Weighted
Rate of Return, Net of
Investment Expense
2006 0.23%
2007 -0.39%
2008 3.49%
2009 7.10%
2010 8.51%
2011 9.06%
2012 12.95%
2013 10.44%
2014 6.23%
2015 -1.20%
MIAMI SHORES VILLAGE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF INVESTMENT RETURNS
GENERAL EMPLOYEES' RETIREMENT SYSTEM
70
Fiscal year ending September 30,2014
Total Pension Liability
Service Cost 672,275$
Interest 1,796,408
Benefit Changes -
Difference between actual & expected experience 5,315
Assumption Changes -
Benefit Payments (1,180,510)
Refunds -
Other 113,175
Net Change in Total Pension Liability 1,406,663
Total Pension Liability - Beginning 23,668,697
Total Pension Liability - Ending (a)25,075,360$
Plan Fiduciary Net Position
Contributions - Employer 1,207,161$
Contributions - Non-Employer Contributing Entity 173,561 1
Contributions - Member 205,660
Net Investment Income 1,168,552
Benefit Payments (1,180,510)
Refunds -
Administrative Expense (39,392)
Net Change in Plan Fiduciary Net Position 1,535,032
Plan Fiduciary Net Position - Beginning 17,243,488
Plan Fiduciary Net Position - Ending (b) 18,778,520$
Net Pension Liability - Ending (a) - (b)6,296,840$
Plan Fiduciary Net Position as a Percentage of Total Pension Liability 74.89%
Covered Employee Payroll 2 2,285,111$
Net Pension Liability as a Percentage of Covered Employee Payroll 275.56%
1
Thisschedule is presented to illustratetherequirement to showinformationfor 10 years.However,
untilafull10-yeartrend is compiled,pension plans shouldpresentinformationforthoseyearsfor
which information is available.
MIAMI SHORES VILLAGE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
POLICE OFFICERS' RETIREMENT SYSTEM (VILLAGE'S REPORTING)
CoveredEmployeePayrollwascalculated by dividingthetotalmembercontributionsforthefiscal
year by the member contribution rate of 9%.
(as required by GASB Statement No. 68)
71
Fiscal year ending September 30,2015 2014
Total Pension Liability
Service Cost 554,721$ 672,275$
Interest 1,937,284 1,796,408
Benefit Changes (173,336) -
Difference between actual & expected experience (582,646) 5,315
Assumption Changes 307,647 -
Benefit Payments (941,093) (1,180,510)
Refunds - -
Other - 113,175
Net Change in Total Pension Liability 1,102,577 1,406,663
Total Pension Liability - Beginning 25,075,360 23,668,697
Total Pension Liability - Ending (a)26,177,937$ 25,075,360$
Plan Fiduciary Net Position
Contributions - Employer 1,249,668$ 1,207,161$
Contributions - Non-Employer Contributing Entity - 1 173,561
Contributions - Member 180,728 205,660
Net Investment Income (201,097) 1,168,552
Benefit Payments (941,093) (1,180,510)
Refunds - -
Administrative Expense (11,783) (39,392)
Net Change in Plan Fiduciary Net Position 276,423 1,535,032
Plan Fiduciary Net Position - Beginning 18,778,520 17,243,488
Plan Fiduciary Net Position - Ending (b) 19,054,943$ 18,778,520$
Net Pension Liability - Ending (a) - (b)7,122,994$ 6,296,840$
Plan Fiduciary Net Position as a Percentage of Total Pension Liability 72.79%74.89%
Covered Employee Payroll 2 2,008,089$ 2,285,111$
Net Pension Liability as a Percentage of Covered Employee Payroll 354.72%275.56%
1
2 CoveredEmployeePayrollwascalculated by dividingthetotalmembercontributionsforthefiscalyear by the
member contribution rate of 9%.
Thisschedule is presented to illustratetherequirement to showinformationfor 10 years.However,untila
full10-yeartrend is compiled,pensionplansshouldpresentinformationforthoseyearsforwhichinformation
is available.
(as required by GASB Statement No. 67)
MIAMI SHORES VILLAGE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
POLICE OFFICERS' RETIREMENT SYSTEM (PLAN'S REPORTING)
StatecontributionsforfiscalyearendingSeptember 30,2015 were not receiveduntilafterthe endof the
fiscal year (therefore not permitted to be used until next fiscal year).
72
Fiscal
Year Actuarially Contribution Actual Contribution
Ending Determined Actual Deficiency Covered as a % of
September 30,Contribution Contribution (Excess) Payroll2 Covered Payroll
2015 1,249,668$ 1,249,668$ -$ 2,008,089$ 62.23%
2014 1,237,354 1,267,547 1 (30,193) 2,285,111 55.47%
1
2
Valuation Date 10/1/2014
Measurement Date:9/30/2015
Notes
Methods and Assumptions Used to Determine Contribution Rates:
Entry Age Normal
Amortization Method Level Dollar, Closed
Remaining Amortization Period 20 years
Asset Valuation Method 5-year smoothed market
Inflation 4.0%
Salary Increases 6.5%
Investment Rate of Return 7.7%
Retirement Age
Mortality
MIAMI SHORES VILLAGE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS
POLICE OFFICERS' RETIREMENT SYSTEM
CoveredEmployeePayrollwascalculated by dividingthetotalmembercontributionsforthefiscalyear by
the member contribution rate of 9%.
StatecontributionsforfiscalyearendingSeptember 30,2015 were not receiveduntilafterthe endof the
fiscal year (therefore not permitted to be used until next fiscal year).
Thisschedule is presented to illustratetherequirement to showinformationfor 10 years.However,untila
full10-yeartrend is compiled,pensionplansshouldpresentinformationforthoseyearsforwhich
information is available.
Actuarial Cost Method
Allactivesareassumed to retirewhenfirsteligibleforNormal
Retirement.The rate of retirement is 1%foreachyear of eligibilityfor
Early Retirement.
RP-2000CombinedHealthyParticipantMortalityTableformales and
femaleswithmortalityimprovementprojected to allfutureyearsafter
2000 using Scale BB.
Notes to the Schedule of Contributions
Actuariallydeterminedcontributionratesarecalculated asof October 1,
which is twoyearsprior to the endof thefiscalyear in which
contributions are reported.
73
Fiscal year ending
September 30,
Annual Money-Weighted
Rate of Return, Net of
Investment Expense
2006 0.75%
2007 0.22%
2008 3.74%
2009 6.89%
2010 7.99%
2011 8.38%
2012 11.52%
2013 9.48%
2014 6.30%
2015 -0.90%
MIAMI SHORES VILLAGE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF INVESTMENT RETURNS
POLICE OFFICERS' RETIREMENT SYSTEM
74
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.
Brockway Memorial Library Fund – This fund accounts for donations to be applied toward the
Library’s Children’s Wing Expansion Project. All funds in this account are available to be used in
the renovation and addition slated as part of the expansion project.
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 Brockway
Transportation Option Better Enforcement Memorial
Surtax Gas Tax Communities Grants Training Expansion Total
ASSETS
Cash and cash equivalents 428,236$ 243,278$ -$ -$ 18,309$ 272,300$ 962,123$
Accounts receivable - net 99,725 27,181 - 32,203 404 - 159,513
Total assets 527,961 270,459 - 32,203 18,713 272,300 1,121,636
LIABILITIES
Accounts payable and accrued liabilities 41,945 5,893 - 10,825 - - 58,663
Due to other funds - - - 5,922 - - 5,922
Unearned revenues - - - 2,000 - - 2,000
Total liabilities 41,945 5,893 - 18,747 - - 66,585
FUND BALANCES
Restricted 486,016 264,566 - 13,456 18,713 272,300 1,055,051
Committed - - - - - - -
Total fund balances 486,016 264,566 - 13,456 18,713 272,300 1,055,051
Total liabilities and fund balances 527,961$ 270,459$ -$ 32,203$ 18,713$ 272,300$ 1,121,636$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2015
Special Revenue Funds
75 (Continued)
Debt
Service
Total
Capital Charter Nonmajor
Improvement High School Governmental
GO Bonds Fund Construction Total Funds
ASSETS
Cash and cash equivalents 1,115,618$ 520,127$ 59,357$ 579,484$ 2,657,225$
Accounts receivable - net 7 - - - 159,520
Total assets 1,115,625 520,127 59,357 579,484 2,816,745
LIABILITIES
Accounts payable and accrued liabilities - 1,050 - 1,050 59,713
Due to other funds - - - - 5,922
Unearned revenues - - - - 2,000
Total liabilities - 1,050 - 1,050 67,635
FUND BALANCES
Restricted 1,115,625 - - - 2,170,676
Committed - 519,077 59,357 578,434 578,434
Total fund balances 1,115,625 519,077 59,357 578,434 2,749,110
Total liabilities and fund balances 1,115,625$ 520,127$ 59,357$ 579,484$ 2,816,745$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2015
Capital Projects
76
Local Building Law Brockway
Transportation Option Better Enforcement Memorial
Surtax Gas Tax Communities Grants Training Expansion Total
Revenues:
Property taxes -$ -$ -$ -$ -$ -$ -$
Intergovernmental revenues 408,970 371,207 - 36,203 - - 816,380
Fines and forfeitures - - - - 2,664 - 2,664
Miscellaneous - - - - - 222,300 222,300
Interest income 1,063 1,309 - - 29 - 2,401
Total revenues 410,033 372,516 - 36,203 2,693 222,300 1,043,745
Expenditures:
Current:
General government - - 35,564 48,644 - - 84,208
Public works 209,851 341,483 - - - - 551,334
Capital outlay 195,865 299,248 111,365 - - - 606,478
Debt service:-
Principal - - - - - - -
Interest - - - - - - -
Total expenditures 405,716 640,731 146,929 48,644 - - 1,242,020
Excess (deficiency) of revenues
over (under) expenditures before
other financing sources 4,317 (268,215) (146,929) (12,441) 2,693 222,300 (198,275)
Other financing sources (uses):
Transfers in - - 146,929 12,441 - 50,000 209,370
Transfers (out)(159,370) (93,700) - - - - (253,070)
Total other financing sources (uses)(159,370) (93,700) 146,929 12,441 - 50,000 (43,700)
Net change in fund balance (155,053) (361,915) - - 2,693 272,300 (241,975)
Fund balances, beginning 641,069 626,481 - 13,456 16,020 - 1,297,026
Fund balances, ending 486,016$ 264,566$ -$ 13,456$ 18,713$ 272,300$ 1,055,051$
FISCAL YEAR ENDED SEPTEMBER 30, 2015
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
77 (Continued)
Debt
Service
Total
Capital Charter Nonmajor
Improvement High School Governmental
GO Bonds Fund Construction Total Funds
Revenues:
Property taxes 510,255$ -$ -$ -$ 510,255$
Intergovernmental revenues - - - - 816,380
Fines and forfeitures - - - - 2,664
Miscellaneous - - - - 222,300
Interest income 3,155 355 - 355 5,911
Total revenues 513,410 355 - 355 1,557,510
Expenditures:
Current:
General government 55,426 - - - 139,634
Public works - - - - 551,334
Capital outlay - 660,116 4,099 664,215 1,270,693
Debt service:
Principal 635,837 - - - 635,837
Interest 272,374 - - - 272,374
Total expenditures 963,637 660,116 4,099 664,215 2,869,872
Excess (deficiency) of revenues
over (under) expenditures before
other financing sources (uses)(450,227) (659,761) (4,099) (663,860) (1,312,362)
Other financing sources (uses):
Issuance of debt 4,017,600 - - - 4,017,600
Payment to refunded bonds escrow agent (3,890,000) - - - (3,890,000)
Sales of capital assets - 523,164 - 523,164 523,164
Transfers in 380,500 381,700 - 381,700 971,570
Transfers out - (30,000) - (30,000) (283,070)
Total other financing sources (uses)508,100 874,864 - 874,864 1,339,264
Net change in fund balance 57,873 215,103 (4,099) 211,004 26,902
Fund balances, beginning 1,057,752 303,974 63,456 367,430 2,722,208
Fund balances, ending 1,115,625$ 519,077$ 59,357$ 578,434$ 2,749,110$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2015
Capital Projects
78
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:
Intergovernmental revenues 350,000$ 350,000$ 371,207$ 21,207$ 369,000$ 369,000$ 408,970$ 39,970$
Interest income 1,200 1,200 1,309 109 1,000 1,000 1,063 63
Total revenues 351,200 351,200 372,516 21,316 370,000 370,000 410,033 40,033
Expenditures:
Current:
Public works 344,740 344,740 341,483 3,257 220,026 220,026 209,851 10,175
Capital outlay 100,000 387,199 299,248 87,951 250,000 408,116 195,865 212,251
Total expenditures 444,740 731,939 640,731 91,208 470,026 628,142 405,716 222,426
Excess (deficiency) of revenues
over (under) expenditures before
other financing sources (93,540) (380,739) (268,215) 112,524 (100,026) (258,142) 4,317 262,459
Other financing sources (uses):
Transfers (out)(93,700) (93,700) (93,700) - - (9,000) (159,370) (150,370)
Appropriations from prior year fund balance 187,240 474,439 - (474,439) 100,026 267,142 - (267,142)
Total other financing sources (uses)93,540 380,739 (93,700) (474,439)$ 100,026 258,142 (159,370) (417,512)$
Net change in fund balance - - (361,915) - - (155,053)
Fund balances, beginning - - 626,481 - - 641,069
Fund balances, ending -$ -$ 264,566$ -$ -$ 486,016$
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, 2015
79
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental revenues -$ 36,000$ 36,203$ 203$
Total revenues - 36,000 36,203 203
Expenditures:
Current:
General government - 45,000 48,644 (3,644)
Total expenditures - 45,000 48,644 (3,644)
(Deficiency) of revenues over expenditures
over (under) expenditures before
other financing sources - (9,000) (12,441) (3,441)
Other financing sources:
Transfers in - 9,000 12,441 (3,441)
Total other financing sources - 9,000 12,441 (3,441)$
Net change in fund balance - - -
Fund balances, beginning - - 13,456
Fund balances, ending -$ -$ 13,456$
Grants Fund
MIAMI SHORES VILLAGE, FLORIDA
SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES-BUDGET AND ACTUAL NONMAJOR GOVERNMENTAL FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2015
Special Revenue Funds
80 (Continued)
Variance with Variance with
Final Budget Final Budget
Actual Positive Actual Positive
Original Final Amounts (Negative)Original Final Amounts (Negative)
Revenues:
Property taxes 505,020$ 505,020$ 510,255$ 5,235$ -$ -$ -$ -$
Interest income - - 3,155 3,155 - - 355 355
Total revenues 505,020 505,020 513,410 8,390 - - 355 355
Expenditures:
Current:
General government 8,500 8,500 55,426 (46,926) - - - -
Capital outlay - - - - 409,700 703,472 660,116 43,356
Debt service:
Principal 474,000 474,000 635,837 (161,837) - - - -
Interest 268,020 268,020 272,374 (4,354) - - - -
Total expenditures 750,520 750,520 963,637 (213,117) 409,700 703,472 660,116 43,356
(Deficiency) of revenues over expenditures
before other financing sources (245,500) (245,500) (450,227) (204,727) (409,700) (703,472) (659,761) 43,711
Other financing sources (uses):
Issuance of debt - - 4,017,600 4,017,600 - - - (30,000)
Payment to refunded bonds escrow agent - - (3,890,000) (3,890,000) - - - -
Sales of capital assets - - - - - - 523,164 (523,164)
Transfers in 380,500 380,500 380,500 - 381,700 381,700 381,700 -
Transfers out - - - - - - (30,000) 30,000
Appropriations from prior year fund balance - - - - 58,000 351,772 - (351,772)
Total other financing sources 380,500 380,500 508,100 127,600$ 439,700 733,472 874,864 (874,936)$
Net change in fund balance 135,000 135,000 57,873 30,000 30,000 215,103
Fund balances, beginning - - 1,057,752 - - 303,974
Fund balances, ending 135,000$ 135,000$ 1,115,625$ 30,000$ 30,000$ 519,077$
Budgeted Amounts Budgeted Amounts
MIAMI SHORES VILLAGE, FLORIDA
SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES-BUDGET AND ACTUAL NONMAJOR GOVERNMENTAL FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2015
Debt Service Fund Capital Improvement Fund
81
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 785,801$ 1,191,143$ 1,976,944$
Accounts receivable - net 142,706 - 142,706
Inventories - 46,009 46,009
Prepaid items 152,601 - 152,601
Total current assets 1,081,108 1,237,152 2,318,260
Capital assets:
Capital assets not being depreciated - 7,127 7,127
Capital assets being depreciated, net - 1,952,455 1,952,455
Total noncurrent assets - 1,959,582 1,959,582
Total assets 1,081,108 3,196,734 4,277,842
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 47,779 9,361 57,140
Compensated absences - 4,320 4,320
Total current liabilities 47,779 13,681 61,460
Noncurrent liabilities:
Compensated absences - 12,960 12,960
Claims payable 340,000 - 340,000
Total noncurrent liabilities 340,000 12,960 352,960
Total liabilities 387,779 26,641 414,420
NET POSITION
Net investment in capital assets - 1,959,582 1,959,582
Unrestricted 693,329 1,210,511 1,903,840
Total net position 693,329$ 3,170,093$ 3,863,422$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2015
82
Risk Fleet
Management Maintenance
Fund Fund Total
Revenues:
Charges for services 630,932$ 1,073,328$ 1,704,260$
Operating expenses:
Administrative and general 18,075 585,260 603,335
Personnel expenses - 189,859 189,859
Depreciation - 173,970 173,970
Insurance premiums and claims 844,530 - 844,530
Total operating expenses 862,605 949,089 1,811,694
Operating (loss) income (231,673) 124,239 (107,434)
Non-operating revenues:
Interest income 1,524 986 2,510
Total non-operating revenues 1,524 986 2,510
(Loss) Income before transfers and contributions (230,149) 125,225 (104,924)
Transfers in - 90,000 90,000
Transfers (out)(122,000) - (122,000)
Contributions - 122,449 122,449
Change in net position (352,149) 337,674 (14,475)
Net position, beginning 1,045,478 2,832,419 3,877,897
Net position, ending 693,329$ 3,170,093$ 3,863,422$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2015
83
Risk Fleet
Management Maintenance
Fund Fund Total
Cash flows from operating activities:
Cash received from customers, governments and other funds 579,282$ 1,073,328$ 1,652,610$
Cash paid to suppliers (811,157) (552,742) (1,363,899)
Cash paid to employees - (187,653) (187,653)
Net cash (used in) provided by operating activities (231,875) 332,933 101,058
Cash flows from non-capital financing activities:
Transfers in - 90,000 90,000
Transfers out (122,000) - (122,000)
Net cash provided by (used in) non-capital financing activities (122,000) 90,000 (32,000)
Cash flows from capital related financing activities:
Acquisition and construction of capital assets - (282,529) (282,529)
Capital contributions - 122,449 122,449
Net cash (used in) capital and related financing activities - (160,080) (160,080)
Cash flows from investing activities:
Interest and other income 1,524 986 2,510
Net cash provided by investing activities 1,524 986 2,510
Net (decrease) increase in cash and cash equivalents (352,351) 263,839 (88,512)
Cash and cash equivalents, October 1 1,138,152 927,304 2,065,456
Cash and cash equivalents, September 30 785,801$ 1,191,143$ 1,976,944$
Reconciliation of operating income to net cash provided by (used in)
operating activities:
Operating (loss) income (231,673)$ 124,239$ (107,434)$
Adjustments to reconcile operating (loss) income
to net cash (used in) provided by operating activities:
Depreciation - 173,970 173,970
Change in assets and liabilities:
(Increase) decrease in:
Accounts receivable (51,650) - (51,650)
Inventories - 23,157 23,157
Prepaids 3,669 - 3,669
Increase (decrease) in:
Accounts payable and accrued liabilities 47,779 9,361 57,140
Compensated absences - 2,206 2,206
Total adjustments (202) 208,694 208,492
Net cash (used in) provided by operating activities (231,875)$ 332,933$ 101,058$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2015
84
FIDUCIARY FUNDS
These funds account for assets held by the Village in a trustee capacity or as an agent for
employees.
Pension Trust Funds:
Police Officers Retirement System – To account for the accumulation of resources for
pension benefit payments to police officers who have retired from Miami Shores Village.
General Employees Retirement System – To account for the accumulation of resources for
pension benefit payments to employees, other than police, who have retired from Miami Shores
Village.
Agency Fund:
Police Insurance Trust Fund – To accumulate resources on behalf of police personnel to
partially cover retirement health insurance.
General
Employee's Police
Pension Pension
Trust Trust Total
ASSETS
Cash and cash equivalents 236,644$ 606,426$ 843,070$
Receivables:
Other receivables - 32,922 32,922
Accrued interest and dividends 25,050 48,594 73,644
Total receivables 25,050 81,516 106,566
Investments, at fair value
U.S. Government securities 485,184 1,035,714 1,520,898
Municipal bonds 77,268 191,955 269,223
Corporate/Foreign bonds 1,498,552 2,758,634 4,257,186
Mutual funds - equity 5,588,920 8,153,083 13,742,003
Common stocks 1,629,133 2,793,729 4,422,862
Mortgage Backed Securities 1,833,315 3,433,886 5,267,201
Total investments 11,112,372 18,367,001 29,479,373
Total assets 11,374,066 19,054,943 30,429,009
NET POSITION
Net position restricted for pensions 11,374,066$ 19,054,943$ 30,429,009$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF FIDUCIARY NET POSITION
PENSION TRUST FUNDS
SEPTEMBER 30, 2015
85
General
Employee's Police
Pension Pension
Trust Trust Total
ADDITIONS
Contributions:
Employer 371,453$ 1,249,668$ 1,621,121$
Employees 188,793 180,728 369,521
Total contributions 560,246 1,430,396 1,990,642
Investment income:
Unrealized (losses)(833,157) (1,274,589) (2,107,746)
Realized gains 47,516 88,972 136,488
Interest and dividend income 669,900 1,040,663 1,710,563
Total investment (115,741) (144,954) (260,695)
Less investment expenses (44,464) (56,143) (100,607)
Net investment loss (160,205) (201,097) (361,302)
Total additions 400,041 1,229,299 1,629,340
DEDUCTIONS
Benefits paid 655,520 941,093 1,596,613
Administrative expenses 15,448 11,783 27,231
Total deductions 670,968 952,876 1,623,844
Net (decrease) increase (270,927) 276,423 5,496
Net position restricted for pensions
Beginning of year 11,644,993 18,778,520 30,423,513
End of year 11,374,066$ 19,054,943$ 30,429,009$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PENSION TRUST FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015
86
Balance Balance
September 30, September 30,
2014 Additions Deductions 2015
ASSETS
Cash and cash equivalents 174,793$ 2,690$ -$ 177,483$
LIABILITIES
Other liabilities 174,793$ 2,690$ -$ 177,483$
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
SEPTEMBER 30, 2015
POLICE INSURANCE TRUST AGENCY FUND
87
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 88-92
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 93-97
These schedules contain information to help the reader assess the Village’s most significant local
revenue source, the property tax.
Debt Capacity 98-100
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 101
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 102-103
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.
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Governmental activities:
Net investment in capital assets 14,140,442$ 14,460,317$ 13,445,077$ 13,160,184$ 12,279,776$ 11,507,713$ 12,276,631$ 11,255,620$ 9,393,138$ 4,993,244$
Restricted 5,953,557 5,521,292 6,042,082 5,834,992 3,975,983 3,509,136 3,025,933 4,112,366 3,345,154 3,487,313
Unrestricted 3,737,341 9,971,992 9,916,183 9,592,734 9,904,824 9,350,904 8,901,635 6,373,568 4,506,954 (653,531)
Total governmental activities
net position 23,831,340 29,953,601 29,403,342 28,587,910 26,160,583 24,367,753 24,204,199 21,741,554 17,245,246 7,827,026
Business-type activities:
Net investment in capital assets 2,785,010 2,195,243 2,252,711 1,921,615 1,924,061 2,043,795 558,671 624,398 770,301 748,120
Restricted - - - - - - -
Unrestricted 2,832,838 2,677,461 2,598,838 2,688,382 2,385,331 2,032,852 1,578,649 1,132,430 625,851 540,462
Total business-type activities
net position 5,617,848 4,872,704 4,851,549 4,609,997 4,309,392 4,076,647 2,137,320 1,756,828 1,396,152 1,288,582
Primary government:
Net investment in capital assets 16,925,452 16,655,560 15,697,788 15,081,799 14,203,837 13,551,508 12,835,302 11,880,018 10,163,439 5,741,364
Restricted 5,953,557 5,521,292 6,042,082 5,834,992 3,975,983 3,509,136 3,025,933 4,112,366 3,345,154 3,487,313
Unrestricted 6,570,179 12,649,453 12,515,021 12,281,116 12,290,155 11,383,756 10,480,284 7,505,998 5,132,805 (113,069)
Total primary government
net position 29,449,188$ 34,826,305$ 34,254,891$ 33,197,907$ 30,469,975$ 28,444,400$ 26,341,519$ 23,498,382$ 18,641,398$ 9,115,608$
MIAMI SHORES VILLAGE, FLORIDA
NET POSITION BY COMPONENT
FOR THE LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
88
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Expenses:
Governmental activities:
General government 3,159,828$ 2,760,901$ 2,418,939$ 2,336,763$ 2,396,446$ 2,390,719$ 2,489,426$ 2,325,019$ 2,941,291$ 4,509,714$
Public safety 6,088,608 6,206,349 6,425,432 5,509,508 5,596,692 5,216,724 5,056,573 4,649,985 4,451,336 4,166,932
Public works 3,492,136 2,239,056 2,385,338 2,346,575 1,949,960 2,201,667 2,237,962 2,407,032 2,357,012 2,232,714
Culture and recreation 2,976,180 2,946,167 2,816,882 2,583,688 2,498,408 2,341,310 2,417,232 2,321,392 2,190,507 2,273,686
Interest on debt 272,374 283,840 432,997 425,355 443,542 465,672 486,658 500,045 504,411 448,986
Total governmental activities
expenses 15,989,126 14,436,313 14,479,588 13,201,889 12,885,048 12,616,092 12,687,851 12,203,473 12,444,557 13,632,032
Business-type activities:
Sanitation 2,223,695 2,294,399 2,119,723 2,208,585 2,257,285 2,382,893 2,262,446 2,260,374 2,328,930 2,274,983
Stormwater 193,174 165,537 180,702 175,761 190,992 206,300 160,808 133,913 150,783 111,931
Total business-type activities
expenses 2,416,869 2,459,936 2,300,425 2,384,346 2,448,277 2,589,193 2,423,254 2,394,287 2,479,713 2,386,914
Total primary government
expenses 18,405,995 16,896,249 16,780,013 15,586,235 15,333,325 15,205,285 15,111,105 14,597,760 14,924,270 16,018,946
Program revenues:
Governmental activities:
Charges for services:
General government 1,005,762 1,063,095 841,572 1,069,135 1,177,047 747,353 914,062 128,389 119,903 169,058
Public safety 1,027,550 1,087,055 1,553,168 2,326,376 777,655 733,926 746,055 424,353 472,470 377,470
Public works 200,977 117,815 843,218 727,160 814,600 750,145 1,082,667 644,197 611,097 674,852
Culture and recreation 1,568,844 1,436,999 1,375,506 1,293,788 1,117,160 1,079,727 965,541 854,747 837,492 759,962
Operating grants and contributions 816,380 784,430 87,368 170,234 217,303 95,692 - - - 1,900,256
Capital grants and contributions 35,564 474,079 35,564 47,447 65,921 171,549 - - - 188,709
Total governmental activities
program revenues 4,655,077 4,963,473 4,736,396 5,634,140 4,169,686 3,578,392 3,708,325 2,051,686 2,040,962 4,070,307
Business-type activities:
Charges for services:
Sanitation 2,639,106 2,641,284 2,667,843 2,765,775 2,665,041 2,886,107 2,781,700 2,729,793 2,508,236 2,538,269
Stormwater 244,805 244,107 248,132 252,420 248,668 247,349 228,393 225,719 195,582 189,428
Capital grants and contributions 672,381 - - - - - - - - -
Total business-type activities
program revenues 3,556,292 2,885,391 2,915,975 3,018,195 2,913,709 3,133,456 3,010,093 2,955,512 2,703,818 2,727,697
Total primary government
program revenue 8,211,369$ 7,848,864$ 7,652,371$ 8,652,335$ 7,083,395$ 6,711,848$ 6,718,418$ 5,007,198$ 4,744,780$ 6,798,004$
MIAMI SHORES VILLAGE, FLORIDA
CHANGES IN NET POSITION
FOR THE LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
89 (Continued)
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Net (expense) revenue:
Governmental activities (11,334,049)$ (9,472,840)$ (9,516,115)$ (7,567,750)$ (8,715,362)$ (9,037,699)$ (8,479,225)$ (9,194,005)$ (10,150,679)$ (9,561,725)$
Business-type activities 1,139,423 425,455 615,550 633,849 465,432 544,263 590,839 561,225 224,105 340,783
Total primary government,
net (expense) revenue (10,194,626) (9,047,385) (8,900,565) (6,933,901) (8,249,930) (8,493,436) (7,888,386) (8,632,780) (9,926,574) (9,220,942)
General revenues and other
changes in net position:
Governmental activities:
Property taxes 6,893,572 6,406,843 6,255,087 6,078,085 6,143,806 6,583,883 7,275,746 7,224,338 7,373,484 6,260,392
Public services tax 2,199,772 2,214,451 2,045,767 2,098,267 2,137,473 2,222,743 2,113,032 3,076,198 2,923,499 2,849,982
Intergovernmental 1,027,237 1,002,183 929,762 918,034 936,215 797,773 789,922 895,188 954,600 1,059,067
Miscellaneous 827,991 469,614 415,330 493,243 1,019,320 950,040 447,741 562,941 577,719 308,426
Interest earning - unrestricted 29,568 20,670 32,015 61,071 36,378 38,978 100,429 242,563 398,463 504,743
Gain on sale of capital assets 523,164 - - - - - - - 2,269 3,175
Transfers 400,000 395,000 395,000 335,000 235,000 (1,392,164) 215,000 215,000 210,000 310,000
Total governmental activities 11,901,304 10,508,761 10,072,961 9,983,700 10,508,192 9,201,253 10,941,870 12,216,228 12,440,034 11,295,785
Business-type activities:
Investment earnings 5,721 5,708 5,994 1,756 2,313 2,900 4,653 14,451 22,377 6,868
Other general revenues - - - - - - - - - 25,500
Transfers (400,000) (395,000) (395,000) (335,000) (235,000) 1,392,164 (215,000) (215,000) (210,000) (310,000)
Total business-type activities (394,279) (389,292) (389,006) (333,244) (232,687) 1,395,064 (210,347) (200,549) (187,623) (277,632)
Total primary government 11,507,025 10,119,469 9,683,955 9,650,456 10,275,505 10,596,317 10,731,523 12,015,679 12,252,411 11,018,153
Change in net position:
Governmental activities 567,255 1,035,921 556,846 2,415,950 1,792,830 163,554 2,462,645 3,022,223 2,289,355 1,734,060
Business-type activities 745,144 36,163 226,544 300,605 232,745 1,939,327 380,492 360,676 36,482 63,151
Total primary government 1,312,399$ 1,072,084$ 783,390$ 2,716,555$ 2,025,575$ 2,102,881$ 2,843,137$ 3,382,899$ 2,325,837$ 1,797,211$
Fiscal Year
MIAMI SHORES VILLAGE, FLORIDA
CHANGES IN NET POSITION
FOR THE LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(CONTINUED)
90
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
General fund:
Reserved -$ -$ -$ -$ -$ 134,569$ 80,052$ 71,923$ 189,953$ 199,435$
Unreserved - - - - - 6,391,651 5,014,190 5,449,842 4,022,283 2,050,103
Nonspendable *3,741 11,698 32,305 33,480 1,885 - - - - -
Restricted *- - - - - - - - - -
Committed *31,562 31,562 45,947 77,512 63,109 - - - - -
Assigned *- - - - - - - - - -
Unassigned *8,553,593 7,923,177 7,884,961 7,846,925 7,609,716 - - - - -
Total general fund 8,588,896$ 7,966,437$ 7,963,213$ 7,957,917$ 7,674,710$ 6,526,220$ 5,094,242$ 5,521,765$ 4,212,236$ 2,249,538$
All other governmental funds:
Reserved -$ -$ -$ -$ -$ 5,247,645$ 5,449,479$ 4,300,256$ 2,852,772$ 2,439,044$
Unreserved reported in:
Special revenue funds - - - - - 201,327 348,194 229,152 861,799 682,726
Capital project funds - - - - - 566,251 603,735 551,837 560,171 1,029,557
Nonspendable *- - - 59,270 61,225 - - - - -
Restricted *5,953,557 5,731,494 6,042,082 5,798,976 3,975,983 - - - - -
Committed *578,434 649,494 611,766 955,728 1,748,148 - - - - -
Assigned *- - - - - - - - - -
Unassigned *- - - - - - - - - -
Total all other governmental funds 6,531,991$ 6,380,988$ 6,653,848$ 6,813,974$ 5,785,356$ 6,015,223$ 6,401,408$ 5,081,245$ 4,274,742$ 4,151,327$
*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
91
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Revenues:
Taxes 6,893,572$ 6,406,843$ 6,255,087$ 6,078,085$ 6,143,806$ 6,583,883$ 7,275,746$ 7,224,338$ 7,373,484$ 6,260,392$
Public services taxes 2,199,772 2,214,451 2,799,637 2,795,688 2,851,593 2,874,645 2,906,861 2,925,431 2,923,499 2,849,982
Licenses and permits 1,237,435 1,018,301 841,572 914,833 1,052,626 658,833 671,674 682,951 666,628 776,199
Intergovernmental 1,879,181 2,219,683 1,052,694 1,135,715 1,219,439 1,065,014 1,290,223 1,837,400 1,188,368 3,125,789
Charges for services 2,059,389 1,980,381 1,941,090 1,734,095 1,542,432 1,460,451 1,310,257 1,101,300 1,077,259 967,235
Fines and forfeitures 613,743 629,524 858,753 1,955,837 423,905 444,944 495,503 267,435 297,075 237,908
Miscellaneous 827,991 555,417 415,330 493,243 986,649 950,040 447,741 529,163 577,719 308,426
Investment earnings 27,058 18,166 32,015 59,289 31,796 35,153 94,300 227,663 349,971 201,466
Contributions - - - - - - - 15,570 19,148 22,243
Confiscation property - - - - - - - - - -
Total revenues 15,738,141 15,042,766 14,196,178 15,166,785 14,252,246 14,072,963 14,492,305 14,811,251 14,473,151 14,749,640
Expenditures:
General government 3,073,851 2,627,454 2,500,274 2,291,190 2,391,556 2,235,855 2,284,775 2,131,535 2,604,109 3,831,791
Public safety 6,134,782 6,285,671 6,111,942 5,536,160 5,399,589 5,022,542 5,050,239 4,659,900 4,257,493 3,581,621
Public works 1,823,936 1,761,225 1,662,089 1,684,822 1,540,755 1,625,085 1,753,100 1,973,446 2,144,151 1,747,689
Culture and recreation 2,580,527 2,546,688 2,428,789 2,209,660 2,161,213 2,076,176 2,169,671 2,139,027 2,005,558 1,890,555
Capital outlay 1,526,136 1,613,488 1,115,631 1,449,486 1,173,423 1,398,405 1,651,286 1,015,184 1,252,210 1,436,523
Debt services:
Principal 635,837 589,036 4,362,580 487,690 465,351 448,297 431,763 415,130 399,008 1,140,461
Interest 272,374 283,840 432,997 421,599 436,736 455,810 473,831 495,997 507,244 406,413
Total expenditures 16,047,443 15,707,402 18,614,302 14,080,607 13,568,623 13,262,170 13,814,665 12,830,219 13,169,773 14,035,053
(Deficiency) excess of revenues
over expenditures (309,302) (664,636) (4,418,124) 1,086,178 683,623 810,793 677,640 1,981,032 1,303,378 714,587
Other financing sources (uses):
Proceeds from long-term debt 4,017,600 - 3,923,000 - - - - - - 2,500,000
Payment to refunding agent (3,890,000) - - - - - - - - -
Sales of capital assets 523,164 - - - - - - - - -
Transfer in 3,269,070 3,264,673 3,028,480 2,983,374 3,331,180 3,283,369 6,066,843 3,308,918 3,745,053 4,128,423
Transfer out (2,837,070) (2,869,673) (2,688,180) (2,757,627) (3,096,180) (3,048,369) (5,851,843) (3,173,918) (3,946,546) (4,805,054)
Total other financing sources (uses)1,082,764 395,000 4,263,300 225,747 235,000 235,000 215,000 135,000 (201,493) 1,823,369
Net change in fund balances 773,462$ (269,636)$ (154,824)$ 1,311,925$ 918,623$ 1,045,793$ 892,640$ 2,116,032$ 1,101,885$ 2,537,956$
Debt service as a percentage
of noncapital expenditures 6.3%6.2%27.4%7.2%7.3%7.6%7.4%7.7%7.6%12.3%
Fiscal Year
MIAMI SHORES VILLAGE, FLORIDA
CHANGES IN FUND BALANCES FOR GOVERNMENTAL FUNDS
FOR THE LAST TEN FISCAL YEARS
92
Ad-Valorem Taxes Public Licenses Charges Fines and Interest
Fiscal Year General Purpose Service Taxes and Permits Intergovernmental for Services Forfeitures Miscellaneous Income Total
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
2014 5,894,716 2,214,451 1,018,301 1,002,183 1,980,381 492,285 382,149 5,213 12,989,679
2015 6,383,317 2,199,772 1,237,435 1,062,801 2,059,389 499,777 449,445 14,281 13,906,217
GENERAL GOVERNMENTAL AND EXCISE TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
MIAMI SHORES VILLAGE, FLORIDA
Revenues included in the General and Excise Tax Funds
93
Fiscal Year Total Total Total Assessed Value
Ended Residential Personal Centrally Assessed Direct Tax Market as a percentage
September 30,Property Property Assessed Value Rate Value of Market Value
2006 686,912,201$ 23,406,085$ 1,233,756$ 711,552,042$ 9.1796 1,443,293,476$ 49.30%
2007 810,656,588 22,876,703 1,319,888 834,853,179 9.1059 1,853,915,592 45.03%
2008 939,127,227 22,814,441 1,317,506 963,259,174 7.8164 2,214,199,534 43.50%
2009 902,193,025 18,873,700 1,612,487 922,679,212 8.2929 2,047,175,031 45.07%
2010 778,813,734 17,201,636 2,133,438 798,148,808 8.7059 1,524,554,727 52.35%
2011 703,899,345 15,775,621 1,498,857 721,173,823 8.7762 1,283,953,769 56.17%
2012 698,738,442 16,953,525 1,544,711 717,236,678 8.7855 1,243,667,012 57.67%
2013 727,955,201 17,910,658 1,530,814 747,396,673 8.7500 1,284,277,736 58.20%
2014 744,161,594 18,898,889 1,071,836 764,132,319 8.6949 1,294,780,508 59.02%
2015 808,067,935 20,443,472 1,281,491 829,792,898 8.6392 1,483,377,513 55.94%
Note:Property in theVillage is reassessedeachyear.State law requiresthePropertyAppraiser to appraiseproperty at100%of market
value.TheFloridaConstitutionwasamended,effectiveJanuary 1,1995,to limit annual increases in assessedvalue of propertywith
homesteadexemption to 3percent per year or theamount of theConsumerPriceindex,whichever is less.Theincrease is not automatic
since no assessed value shall exceed market value. Tax rates are per $1,000 of assessed value.
Source: Miami-Dade County Property Appraisal Office.
MIAMI SHORES VILLAGE, FLORIDA
ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY
FOR THE LAST TEN FISCAL YEARS
94
Total
Fiscal Year Total Direct &
Ended City Debt Direct County-Debt Overlapping
September 30,Wide Service Rate Wide Service Fire Library School State Rates
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
2014 8.0000 0.6949 8.6949 4.7035 0.4220 2.4623 - 7.9770 0.9455 25.2052
2015 8.0000 0.6392 8.6392 4.6669 0.4500 2.4321 - 7.9740 0.9187 25.0809
City
County
School
State
Source: Miami Dade County Finance Department, Tax Collector's Division
(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 $1,000 of Taxable Assessed Valuation
Tax rate limits:
10.000 Mils
10.000 Mils
10.000 Mils
10.000 Mils
Miami Shores Village County Special Districts
MIAMI SHORES VILLAGE, FLORIDA
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS (1)
FOR THE LAST TEN FISCAL YEARS
95
Percentage Percentage
Taxable of Total City Taxable of Total City
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Value Value Rank Value
Shore Square Properties, LLC 9,243,275$ 1 1.11%-$ 0.00%
Northern Trust Bank (Publix)7,656,000 2 0.92%8,023,727 1 1.13%
Florida Power & Light Co.7,013,733 3 0.85%- 0.00%
Tropical Chevrolet, Inc.6,415,500 4 0.77%4,817,662 2 0.68%
Wal Miami LLC 3,080,000 5 0.37%- 0.00%
DVS LLC 3,075,224 6 0.37%- 0.00%
Bank of America NA 2,746,188 7 0.33%- 0.00%
Palazzo Leoni LLC (Everett)2,596,150 8 0.31%- 0.00%
Omar Cassola 1,990,579 9 0.24%2,106,469 9 0.30%
Miami Shores Village 1,900,433 10 0.23%- 0.00%
City National Bank of Florida - 0.00%3,592,351 3 0.50%
David & June Heller - 0.00%2,878,821 4 0.40%
Robert Ader & W - 0.00%2,782,431 5 0.39%
Shores at Biscayne LLC - 0.00%2,300,000 6 0.32%
Bujolo, Inc - 0.00%2,223,705 7 0.31%
Sandra Chaille - 0.00%2,156,796 8 0.30%
Ramiro del Amo - 0.00%2,043,628 10 0.29%
Total 45,717,082$ 5.51%32,925,590$ 4.63%
Source: Miami-Dade County Property Appraiser Office
2015 2006
MIAMI SHORES VILLAGE, FLORIDA
PRINCIPAL PROPERTY TAX PAYERS
CURRENT YEAR AND TEN YEARS AGO
96
Fiscal Year Total Levied Collections
Ended for the Percentage in Subsequent Percentage
September 30,Fiscal Year Amount of Levy Years Amount of Levy
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 5,658,135 98.3%60,881 5,719,016 99.4%
2013 5,998,630 5,672,080 94.6%46,936 5,719,016 95.3%
2014 6,113,059 5,894,716 96.4%98 5,894,814 96.4%
2015 6,638,343 6,383,223 96.2%94 6,383,317 96.2%
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
97
Percentage
of Actual
Fiscal Year General Taxable Percentage
Ended Obligation Loan Value of of Personal
September 30,Bonds Payable Total Property Income
2006 7,585,000$ 3,444,879$ 11,029,879$ 1.55%3.04%
2007 7,415,000 3,215,811 10,630,811 1.27%2.86%
2008 7,235,000 3,438,552 10,673,552 1.11%2.76%
2009 7,050,000 3,095,362 10,145,362 1.10%2.58%
2010 6,860,000 2,737,674 9,597,674 1.20%3.92%
2011 6,665,000 2,358,637 9,023,637 1.25%3.29%
2012 6,460,000 1,922,581 8,382,581 1.17%2.38%
2013 6,298,000 1,645,000 7,943,000 1.06%2.22%
2014 6,053,000 1,300,964 7,353,964 0.96%1.85%
2015 5,895,300 950,427 6,845,727 0.82%1.69%
Governmental Activities
MIAMI SHORES VILLAGE, FLORIDA
RATIOS OF OUTSTANDING DEBT BY TYPE
FOR THE LAST TEN FISCAL YEARS
98
Percentage Amount
Debt Applicable Applicable
Outstanding To City To City
Overlapping debt:
Miami-Dade County, Florida (1)1,384,231$ 0.36%4,985$
Miami-Dade County Public Schools (2)365,012 0.35%1,290
Total overlapping debt 1,749,243 6,275
Direct debt:
Miami Shores Village 6,845 100.00%6,845
Total direct and overlapping debt 1,756,088$ 13,120$
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, 2015
(IN THOUSANDS)
Governmental Unit
99
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Debt limit 77,083,990$ 70,360,232$ 68,441,667$ 65,491,549$ 65,452,382$ 72,954,881$ 72,117,382$ 92,267,921$ 82,713,158$ 71,155,204$
Total net debt applicable to limit 5,895,300 6,053,000 6,298,000 6,460,000 6,665,000 6,860,000 7,235,000 7,415,000 7,415,000 7,585,000
Legal debt margin 71,188,690$ 64,307,232$ 62,143,667$ 59,031,549$ 58,787,382$ 66,094,881$ 64,882,382$ 84,852,921$ 75,298,158$ 63,570,204$
Total net debt applicable to the
limit as a percentage of debt limit 7.65%8.60%9.20%9.86%10.18%9.40%10.03%8.04%8.96%10.66%
829,792,898$
82,979,290
6,845,727
(950,427)
5,895,300
77,083,990$
Revenue bonds
Installment loans
Total debt applicable to limitation
Legal debt margin
Legal debt margin calculation for fiscal year 2015:
Assessed value
Debt limit (10% of assessed value)
Debt applicable to limit:
Total bonded debt
Fiscal Year
MIAMI SHORES VILLAGE, FLORIDA
LEGAL DEBT MARGIN INFORMATION
FOR THE LAST TEN FISCAL YEARS
Less:
100
Personal Per
Income Capita
Estimated (Thousands of Personal Unemployment
Year Population (1)Dollars)Income (2)Rate (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%
2014 10,781 396,741 36,800 6.6%
2015 10,776 405,048 37,588 6.2%
(2) United States Census Bureau
(3) U.S. Department of Labor Statistics
MIAMI SHORES VILLAGE, FLORIDA
DEMOGRAPHIC AND ECONOMIC STATISTICS
FOR THE LAST TEN CALENDAR YEARS
Sources:
(1) State of Florida Department of Revenue
101
Percentage Percentage
of Total County of Total County
Employer Employees Rank Employment Employees Rank Employment
Miami-Dade County Public Schools 33,477 1 2.52%54,387 1 4.63%
Miami-Dade County, Florida 25,502 2 1.92%32,265 2 2.75%
Federal Government 19,200 3 1.45%19,800 4 1.69%
Florida State Government 17,100 4 1.29%20,100 3 1.71%
University of Miami 12,818 5 0.97%9,367 7 0.80%
Baptist Health Systems of South FL 11,353 6 0.86%10,300 6 0.88%
American Airlines 11,031 7 0.83%9,000 8 0.77%
Jackson Health System 9,797 8 0.74%11,700 5 1.00%
Publix Super Markets 4,604 9 0.35%N/A N/A N/A
City of Miami 3,997 10 0.30%N/A N/A N/A
Miami Dade Community College - N/A N/A 5,400 9 0.46%
United Parcel Service - N/A N/A 5,000 10 0.43%
Total Civilian Labor Force Employment 1,325,898 1,174,665
Source: The Beacon Council, Miami Florida, Miami Business Profile
2015 2006
MIAMI SHORES VILLAGE, FLORIDA
PRINCIPAL EMPLOYERS LOCATED IN MIAMI-DADE COUNTY
CURRENT YEAR AND TEN YEARS AGO
102
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
General government:
Administration:
Full time 10 8 10 9 9 9 9 9 10 11
Part time 6 5 5 5 5 - - - - -
Finance:
Full time 5 5 5 5 5 5 4 4 4 5
Part time - - - - - 1 1 1 1 1
Public works:
Full time 39 43 41 40 40 47 45 44 60 66
Part time 1 - 1 - - 1 2 1 2 2
Culture and recreation:
Recreation:
Full time 13 12 12 13 13 13 11 12 12 12
Part time 63 72 51 30 30 51 56 48 64 64
Library:
Full time 4 2 3 3 3 3 3 3 3 4
Part time 6 8 7 6 6 7 7 7 7 6
Public safety:
Police:
Full time 40 43 43 44 44 45 45 43 47 47
Part time 4 4 3 3 3 3 3 3 5 5
Total 191 202 181 158 158 185 186 175 215 223
Fiscal Year
Source: Village Finance Office
MIAMI SHORES VILLAGE, FLORIDA
VILLAGE EMPLOYEES BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/program:
103
COMPLIANCE SECTION
104
Alberni Caballero & Fierman, LLP
4649 Ponce de Leon Blvd.
Suite 404
Coral Gables, Florida 33146
T: 305.662.7272 F: 305.662.4266
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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, 2015, 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 30,
2016.
Internal Control Over Financial Reporting
In planning and performing our audit of the financ ial 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 enough to
merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the firs t paragraph of this section and
was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant
deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal con trol that we
consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
105
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 th e 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 commun ication is not suitable for any
other purpose.
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Coral Gables, Florida
June 30, 2016
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Alberni Caballero & Fierman, LLP
4649 Ponce de Leon Blvd.
Suite 404
Coral Gables, Florida 33146
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MANAGEMENT LETTER REQUIRED BY SECTION 10.550 OF THE RULES OF THE AUDITOR
GENERAL OF THE STATE OF FLORIDA
Honorable Mayor and Members of the Village Council
Miami Shores Village, Florida
Report on the Financial Statements
We have audited the financial statements of Miami Shores Village, Florida (the “Village), as of and for the fiscal year
ended September 30, 2015, and have issued our report thereon dated June 30, 2016.
Auditors’ Responsibility
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.
Other Reports and Schedule
We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government
Auditing Standards; and Independent Accountants’ Report on Compliance with the Requirements of Section 218.415
Florida Statutes in accordance with Chapter 10.550, Rules of the Auditor General of the State of Florida. Disclosures
in those reports, which are dated June 30, 2016, should be considered in conjunction with this management letter.
Prior Audit Findings
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 findings or recommendations made in the preceding annual financial audit report.
Official Title and Legal Authority
Section 10.554(1)(i)4., 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. The Village was created pursuant to the constitution of the State of
Florida, Home Rule Charter of Miami-Dade County, Article 5, Section 5.05. There were no component units related to
the Village.
107
Financial Condition
Section 10.554(1)(i)5.a., Rules of the Auditor General, requires that we report the results of our determination as to
whether or not the Village 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.
Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition
assessment procedures. It is management’s re sponsibility 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.
Annual Financial Report
Section 10.554(1)(i)5.b., Rules of the Auditor General, requires that we report the results of our determination as to
whether the annual financial report for the Village for the fiscal year ended September 30, 2015, 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, 2015. In connection with our audit, we determined that
these two reports were in agreement.
Other Matters
Section 10.554(1)(i)2., 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)3., 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.
Purpose of this Letter
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
state awarding agencies, Members of the Village Council 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 & Fierman, LLP
Alberni Caballero & Fierman, LLP
Coral Gables, Florida
June 30, 2016
108
Alberni Caballero & Fierman, LLP
4649 Ponce de Leon Blvd.
Suite 404
Coral Gables, Florida 33146
T: 305.662.7272 F: 305.662.4266
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I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I
INDEPENDENT ACCOUNTANTS’ REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF
SECTION 218.415 FLORIDA STATUTES IN ACCORDANCE WITH CHAPTER 10.550, RULES OF THE
AUDITOR GENERAL OF THE STATE OF FLORIDA
Honorable Mayor and Members of the Village Council
Miami Shores Village, Florida
We have examined the Miami Shores Village, Florida (the “Village) compliance with the requirements of Section
218.415 Florida Statutes during the fiscal year ended September 30, 2015. Management is responsible for the
Village's compliance with those requirements. Our responsibility is to express an opinion on the Village's compliance
based on our examination.
Our examination was conducted in accordance with attestation standards established by the American Institute of
Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Village's
compliance with those requirements and performing such other procedures as we considered necessary in the
circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does
not provide a legal determination on the Village's compliance with specified requirements.
In our opinion, the Village complied, in all material respects, with the aforementioned requirements for the year ended
September 30, 2015.
Alberni Caballero & Fierman, LLP
Alberni Caballero & Fierman, LLP
Coral Gables, Florida
June 30, 2016