2016A FLORIDA MUNICIPALITY 2
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6 For the Fiscal Year ended September 30, 2016
Comprehensive
Annual
Financial
Report
MIAMI SHORES VILLAGE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
PREPARED BY THE FINANCE DEPARTMENT
MIAMI SHORES VILLAGE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
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 24-66
Required Supplementary Information:
Budgetary Comparison Schedule:
General Fund 67-68
Special Revenue Funds 69
Notes to Budgetary Comparison Schedule 70
Schedule of Changes in Net Pension Liability and Related Ratios – General Employees’
Retirement System (Village’s Reporting) 71
Schedule of Changes in Net Pension Liability and Related Ratios – General Employees’
Retirement System (Plan’s Reporting) 72
Schedule of Contributions – General Employee’s Retirement System (Village’s Reporting) 73
Schedule of Contributions – General Employee’s Retirement System (Plan’s Reporting) 74
Schedule of Investment Returns – General Employee’s Retirement System 75
Schedule of Changes in Net Pension Liability and Related Ratios – Police Officers’
Retirement System (Village’s Reporting) 76
Schedule of Changes in Net Pension Liability and Related Ratios – Police Officers’
Retirement System (Plan’s Reporting) 77
Schedule of Contributions – Police Officer’s Retirement System (Village’s Reporting) 78
MIAMI SHORES VILLAGE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
TABLE OF CONTENTS
(CONTINUED)
II. FINANCIAL SECTION (Continued)
Required Supplementary Information (Continued):
Schedule of Contributions – Police Officer’s Retirement System (Plan’s Reporting) 79
Schedule of Investment Returns – Police Officer’s Retirement System 80
Schedule of Funding Progress – Other Post-Employment Benefits (OPEB) 81
Supplementary Information:
Combining and Individual Financial Statements and Schedules:
Combining Balance Sheet – Nonmajor Governmental Funds 82-83
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances –
Nonmajor Governmental Funds 84-85
Schedules of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Nonmajor Governmental Funds 86-87
Internal Service Funds:
Combining Statement of Net Position 88
Combining Statement of Revenues, Expenses and Changes in Fund Net Position 89
Combining Statement of Cash Flows 90
Fiduciary Funds:
Combining Statement of Fiduciary Net Position – Pension Trust Funds 91
Combining Statement of Changes in Fiduciary Net Position – Pension Trust Funds 92
Statement of Changes in Assets and Liabilities – Agency Fund 93
III. STATISTICAL SECTION (Unaudited)
Net Position by Component 94
Changes in Net Position 95-96
Fund Balances for Governmental Funds 97
Changes in Fund Balances of Governmental Funds 98
General Governmental and Excise Tax Revenues by Source 99
Assessed Value and Actual Value of Taxable Property 100
Property Tax Rates Direct and Overlapping Governments 101
Principal Property Taxpayers – Current Year and Nine Years Ago 102
Operating Property Tax Levies and Collections 103
Ratios of Outstanding Debt By Type 104
Direct and Overlapping Governmental Activities Debt 105
Legal Debt Margin Information 106
Demographic and Economic Statistics 107
Principal Employers Located in Miami Dade County – Current Year and Nine Years Ago 108
Village Employees by Function/Program 109
IV. COMPLIANCE SECTION
Independent Auditors’ Report on Internal Controls over Financial Reporting 110-111
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 112-113
State of Florida
Independent Accountants’ Report on Compliance Pursuant to Section 218.415 114
Florida Statutes
INTRODUCTORY SECTION
10050 N.E. SECOND AVENUE
MIAMI SHORES. FLORIDA 33138-2382
TELEPHONE: (305) ~95-2207
FAX: (305) 756-8972
May 31,2017
The Mayor and Members of the Village Council
10050 Northeast Second Avenue
Miami Shores, Florida 33138-2382
To the Mayor and Members of the Village Council:
Subject: FY 2015-16
Financial Report (CAFR)
MacAdam Glinn
MAYOR
Sean Brady
VICE MAYOR
Jonathan Meltz
COUNCILMAN
Alice Burch
COUNCILWOMAN
Steven Zelkowitz
COUNCILMAN
Tom Benton
VILLAGE MANAGER
Richard Sarafan
VILLAGE ATTORNEY
In compliance with Florida State Statute Chapter § 11.45, Chapter §I 0.550 of the Rules of the Auditor General, and
Chapter 34(3) of the Miami Shores Village Code of Ordinances, we are pleased to submit for your review and
consideration the Miami Shores Village Comprehensive Annual Financial Report (CAFR) for the fiscal year ended
September 30, 2016. The financial statements included in this report conform to generally accepted accounting
principles in the United States of America ("GAAP") as prescribed by the Governmental Accounting Standards Board
("GASB"). The responsibility for both the accuracy of the presented data and the completeness and fairness of the
presentation, including all disclosures, rests with the Village.
This report consists of management's representations concerning the financial condition of Miami Shores Village
("The Village"). Consequently, management assumes full responsibility for the complete presentation, reliability, and
accuracy of all of the information presented in this report. To provide a reasonable basis for making these
representations, the Village's management has established a comprehensive internal control framework that is
designed both to protect the government's assets from loss, theft or misuse and to compile sufficient reliable
information for the preparation of the Village's financial statements in conformance with accounting principles
generally accepted in the United States. Because the cost of internal controls should not outweigh their benefits, the
Village's comprehensive framework of internal controls have been designed to provide reasonable rather than absolute
assurance that the financial statements will be free from material misstatement. As management, we assert that, to the
best of our knowledge and belief, this financial report is complete and reliable in all material respects.
The financial statements have been audited by Alberni Caballero & Fierman, LLP, Certified Public Accountants. The
independent auditor has issued an unmodified opinion that this report fairly represents the financial position of the
Village in conformity with GAAP. Their audit was conducted in accordance with auditing standards generally
accepted in the United States, Government Auditing Standards issued by the Comptroller General of the United States
and the Rules of the Auditor General, State of Florida. The goal of the independent auditor is to provide reasonable
assurance that the financial statements of the Village for the fiscal year ended September 30, 20 16 are free of material
misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements; assessing the accounting principles used and significant estimates made by
management; and evaluating the overall financial statement presentation. The independent auditor concluded, based
upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the financial statements of
Miami Shores Village for the fiscal year ended September 30, 2016 are fairly presented in conformity with generally
accepted accounting principles (GAAP).
The contents of the CAFR have been influenced by compliance with GASB pronouncements, including Statement 34
that requires the preparation of government-wide financial statements on a full accrual basis of accounting for all
funds as well as Management's Discussion and Analysis (MD&A). The MD&A can be found immediately following
the independent auditors' report.
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FY 2015-16 Financial Reg ort May31, 2017
PROFILE OF THE GOVERNMENT
Miami Shores Village, a Florida municipal corporation incorporated in 1932, is located in Northeast Miami-Dade
County. The Village has a year-round population estimated at 10,806 residents living within the 2.5 square mile
jurisdiction. The Village generally begins at Biscayne Bay on the east and goes west to Northwest Second Avenue.
The north and south boundaries are generally ll51h Street and 9 1'1 Street respectively. The Village is a residential-
based community with two (2) commercial districts located on Second Avenue and Biscayne Boulevard. Despite its
close proximity to Downtown Miami, the Village maintains a suburban feel. With limited commercial presence, new
growth will likely be limited to redevelopment. Wealth levels in the Village are above average, with per capita income
at $51,116 or 112% of the state, and median family income at $98,985 or 200% ofthe state.
Operating under a Council-Manager form of government, the Council consists of five members elected at large. The
Mayor is chosen by each of the newly formed councils. Historically, the individual receiving the highest number of
votes during the election is chosen as the Mayor and the Vice-Mayor has received the second highest. Both the Mayor
and Vice-Mayor serve four ( 4) year terms, two as mayor/vice-mayor and two as regular council members. The Village
Council is responsible for the selection and appointment of the Village Manager, Village Clerk and Village Attorney.
The Village Manager is responsible for engaging all department heads and their subordinates.
Miami Shores Village provides a full range of municipal services including recreation and culture, public safety
through the police, public works and general administrative services for its residents and businesses. For the fiscal
year ended September 30,2016, no legally separate authorities or agencies operated under the auspices of the Village;
therefore, no additional financial information will be incorporated into these statements.
FACTORS AFFECTING FINANCIAL CONDITIONS
The information presented in the Village's financial statements primarily focus on the financial position at the end of
each fiscal year as measured by existing resources and claims against those resources. To better understand the
Village's financial condition, readers should focus on both existing and future resources and potential claims (or
liabilities) against those resources. This broader concept is used to assess the financial condition of the Village,
reflecting the current financial position as well as the prospects that today's financial condition will improve or
deteriorate. To achieve this objective, the Village uses a wide-range of information including local economic
conditions and outlook; long-term debt management; capital construction and investments; cash management I
investments; and, of course, risk controls.
ECONOMIC CONDITION AND OUTLOOK
Property values in the Village have recovered significantly since the downturn in the economy with continued
increases in assessed property values. The Village experienced an increase in assessed property values of 8.5% for
fiscal year 2015, 8. 7% for fiscal year 2016 and 8.1% for fiscal year 2017. It is anticipated that this trend will continue
into fiscal year 2018. New construction, additions, and rehabilitative improvements continue with a net new taxable
value of$2.7 million reflected in fiscal year 2017. Building Permits continue to be issued at an all-time high. It is
anticipated that property values will continue to increase due to the desirability of the area and the close proximity to
Greater Downtown Miami.
Management continues to make capital improvements which will further enhance the lifestyle of the residents and
improve services. The Village is in the final stages of completing a water and sewer project in the Northeast Second
Avenue Business District which will enable new businesses to move into the area. This project is anticipated to
improve the vitality and economic value of this Business District. The Village purchased a $1.1 million building
during fiscal year 2016. The Village Council will be exploring the best usage for this property to benefit our residents.
In order to continue to provide the high level of services which has become a hallmark of the community, Management
continues to control costs by closely monitoring purchasing procedures and levels of staffing. Due to these efforts the
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FY 2015-16 FinaDcial Rep ort Mar31, 2 01 7
general fund unassigned fund balance for fiscal year 2016 is $7.9 million. This surplus will enable the Village to
continue to provide the same level of services to the residents in the upcoming fiscal years, and to address continuing
capital improvement requirements.
The Village maintains a strong financial position with healthy reserve levels, modest tax base with above average
socioeconomic indices, and a manageable debt profile. The stable financial operations are a result of management 's
commitment to conservative budgeting and controlling costs.
FINANCIAL INFORMATION
Accounting Control
Management is responsible for establishing and maintaining an internal control structure designed to ensure that the
assets of the Village are protected from loss, theft or misuse , and to ensure that adequate accounting data is compiled
to allow for the preparation of financial statements in conformity with generally accepted accounting principles in the
United States of America. The internal control structure is designed to provide reasonable , but not absolute, assurance
that these objectives are met . The concept of reasonable assurance recognizes that ( 1) the cost of a control should not
exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments
by management.
As a recipient of federal , state and local financial assistance, the government is also responsible for ensuring that an
adequate internal control structure is in place to ensure and document compliance with applicable laws and regulations
related to these programs. This internal control structure is subject to periodic evaluation by management. In addition,
the Village maintains extensive budgetary controls. The objective of these controls is to ensure compliance with
policy and implementation procedures embodied in the annual appropriated budget approved by Village Council. The
level of budgetary control (i .e. the level at which expenditures cannot legally exceed the appropriated amount) is the
department level within each fund. The Village also maintains an encumbrance accounting system.
The Village 's accounting system is organized on a fund basis . A fund is defined as an independent fiscal and
accounting entity with a self-balancing set of accounts. The types of funds used are generally determined by the
Village Council, upon the recommendations of the Village Manager and the Finance Director, which are based upon
established and accepted accounting policies and procedures as well as the number of funds required.
Budgetary Control
Florida State Statute §200.065 requires that all municipal governments prepare, approve , adopt and execute an annual
budget for such funds as may be required by law or by sound fiscal practices. In compliance with this Statute as well
as other state regulatory items , the Village adopts an annual operating budget into which funds are either formally
appropriated by resolution or non-appropriated in nature , depending upon the fund (i .e. -general, special revenue ,
debt service, enterprise, internal service or trust funds). However, in practice, all funds but those identified as fiduciary
in nature, receive annual budgets and corresponding appropriations.
The annual budget serves as a foundation for the financial planning, guidance and control of the Village. Funds which
require legal appropriations cannot exceed their original and amended budgets. All departments are required to
annually submit requests for appropriations to the Village Manager by June 1st of each year. The Village Manager
then uses those requests as the base from which the annual operating and capital budgets are developed. The budget
is presented to the Village Council following the release of the tentatively assessed property values in early July of
each year. A workshop is held in July during which council members are free to address department staff with general
and specific issues proposed in the budget. Following the summer workshop , the Council adopts a resolution which
sets the tentative millage rates which are subsequently sent to the County using Florida Form DR420 for inclu sion on
the Proposed Tax Bills. Two public hearings are held in September of each year during which members of the public
are offered the opportunity to provide insight and solicit information regarding the operations of their municipality.
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FY2015·16Financia1Re ort Ma 31 2017
After the second public hearing, resolutions presenting the final operating and debt service millage rates along with
corresponding budgets for the fiscal year are subsequently adopted by the Village Council.
The annual budget is adopted at the fund and general fund department level. Line-item transfers are permitted with
the approval of the Finance Director and Village Manager; however, changes to the bottom line of department or fund
totals require council approval and are executed by resolution. Budget to actual comparisons are provided in this
report for each individual governmental fund for which an appropriated annual budget has been adopted. As shown
by the statements and schedules included in the financial section of this report, the Village continues to meet its
responsibility for sound financial management.
LONG-TERM FINANCIAL PLANNING
Management maintains financial stability with fiscal management controls by constantly reviewing and monitoring
stafflevels, and by comparing budget appropriations to actual expenditures, and estimated revenues to actual revenues.
The Village maintains a level of revenue sufficient to meet operating expenditures. During the year, management also
monitors all user fees to ensure that costs are being matched while at the same time remaining competitive in the
marketplace.
Although the Village is a highly desirable place to live, management has plans to make capital improvements which
will further enhance the lifestyle of the residents and improve services. A Multimodal Mobility Study has been
completed and the Village is working on bicycle pathways within the Village boundaries. The Council has also
approved the development of a Downtown Architectural Design Manual, a Downtown Streetscape Analysis and a
Financial Feasibility Analysis for the development of P3 relationships. A Village Wide Traffic Calming Study has
been commissioned to improve the movement of traffic with the Village boundaries. These, as well as other
improvements, should help maintain or possibly increase property values within the Village.
A WARDS and ACKNOWLEDGEMENTS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to Miami Shores Village for its comprehensive annual financial
report for the fiscal year ended September 30, 2015. In order to be awarded a Certificate of Achievement, a
government must publish an easily readable and efficiently organized comprehensive annual financial report. This
report must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual
report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA
to determine its eligibility for another certificate.
The preparation of this report would not have been possible without the efficient and dedicated services of the entire
staff of the Finance Department. Credit must also be given to the members of the Village Council for their unfailing
support for maintaining the highest standards of professionalism in the financial and operational management of
Miami Shores Village. And, finally, we would like to express our sincere thanks and appreciation to the management
and staff of our auditing firm, Alberni Caballero & Fierman, LLP. Their dedication to ensuring the accuracy of the
data presented to you in this report was greatly evident during the past several weeks.
Respectfully submitted,
MIAMI SHORES VILLAGE
THOMAS J. BENTON
Village Manager
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~g~;~G~
Finance Director
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Miami Shores Village
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2015
Executive Director/CEO
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Councilman
Mac Adam Glinn
MIAMI SHORES VILLAGE, FLORIDA
LIST OF ELECTED OFFICIALS
SEPTEMBER 30,2016
Mayor Alice Burch
Vice Mayor Steven Zelkowitz
Councilwoman
Herta Holly
Councilwoman
Ivonne Ledesma
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MIAMI SHORES VILLAGE, FLORIDA
LIST OF APPOINTED OFFICIALS
SEPTEMBER 30, 2016
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
Interim Recreation Director ...................................................................................... Angela Dorney
VILLAGE AUDITORS
Alberni Caballero & Fierman, LLP
Accountants and Advisors
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MIAMI SHORES VILLAGE, FLORIDA
ORGANIZATION CHART
SEPTEMBER 30, 2016
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
INTERIM RECREATION
DIRECTOR
ANGELA DORNEY
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 informatio n of the Miami Shores Village, Florida (the “Village”) as
of and for the fiscal year ended September 30, 2016, 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 Ameri ca; 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 standards applicable
to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United
States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the Village’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 Village’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 p rovide 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, the business -type activities, each major fund, and the aggregate
remaining fund information of the Village, as of September 30, 2016, and the respective changes in financial position
and, where applicable, cash flows for the fiscal year then ended in accordance with accounting principles generall y
accepted in the United States of America.
2
Emphasis of Matters
As discussed in Note 1 to the basic financial statements, the Village implemented Governmental Accounting
Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application as of October 1, 2015. 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 Schedules and related notes, Schedules of Changes
in Net Pension Liability and Related Ratios, Schedules of Contributions, Schedules of Investment Returns, and the
Schedule of Funding Progress– Other Post-Employment Benefits, on pages 67 through 81, 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.
Supplementary and 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, including
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 May 31, 2017, on our
consideration of the Village’s internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements a nd other matters. The purpose of that report is to
describe the scope of our testing of internal control over financial reporting and compliance and the results of that
testing, and not to provide an opinion on 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
May 31, 2017
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, 2016. 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 2016
At September 30, 2016, Miami Shores Village assets and deferred outflows exceeded its liabilities and
deferred inflows by $33.2 million (net position). Of this amount, $18.5 million was invested in capital assets,
an increase of $1.6 million compared with the prior year. Additionally, $9.4 million was restricted by law,
agreements, and debt covenants or for capital projects. The Village had an unrestricted net position of $5.3
million at September 30, 2016 a decrease of $1.2 million or a 19% decrease as compared with the prior year.
The decrease in unrestricted net position was due to the purchase of a $1.1 million building and the continued
implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions; an
amendment of GASB Statement No. 27. Under this Statement, the Village is required to record the net
pension liability in the government wide and proprietary fund financial statements.
During fiscal year 2016, total net position increased by 3.8 million, from $29.4 million in FY2015 to $33.2
million in FY2016. Of this increase, $730 thousand was in governmental activities coupled with an increase
of $3.1 million in business-type activities.
At September 30, 2016, Miami Shores Village’s governmental funds had fund balances totaling $14.2
million. Of the total fund balance, approximately $7.9 million or 55% was unassigned and $582 thousand or
4% was committed for future capital projects and encumbrances. The restricted fund balance of
approximately $5.7 million, or 41%, is related to funds restricted by the contributing agency. The
nonspendable fund balance of approximately $8 thousand is related to prepaid items. The net change in fund
balances during the year was a decrease of $863 thousand.
The General Fund’s fund balance decreased by $721 thousand for the fiscal year ended September 30, 2016.
This decrease was due to the purchase of a building for $1.1 million. The decrease was less than anticipated
as 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 deteriorating.
The Statement of Activities presents information showing how the government’s net position changed during the most recent
fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless
of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only
result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
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 evalu ating 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 information 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 page s
24 to 66 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 67 to 81 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 82 to 93 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:
2016 2015 2016 2015 2016 2015 2015-2016
Current and other assets 17,481$ 18,112$ 8,792$ 3,286$ 26,273$ 21,398$ 22.78%
Capital assets 21,594 20,986 6,655 3,308 28,249 24,294 16.28%
Total assets 39,075 39,098 15,447 6,594 54,522 45,692 19.33%
Deferred outflows related to
pension 3,955 1,864 258 - 4,213 1,864 126.02%
Total deferred outflows
of resources 3,955 1,864 258 - 4,213 1,864 126.02%
Long-term liabilities
outstanding 17,216 16,375 5,578 225 22,794 16,600 37.31%
Other liabilities 687 669 1,455 752 2,142 1,421 50.74%
Total liabilities 17,903 17,044 7,033 977 24,936 18,021 38.37%
Deferred inflows on business
license tax 566 86 1 -567 86 559.30%
Total deferred inflows of
resources 566 86 1 - 567 86 559.30%
Net investment in capital
assets,15,399 14,140 3,123 2,785 18,522 16,925 9.44%
Restricted 5,710 5,954 3,691 - 9,401 5,954 57.89%
Unrestricted 3,452 3,737 1,857 2,832 5,309 6,569 -19.18%
Total net position 24,561$ 23,831$ 8,671$ 5,617$ 33,232$ 29,448$ 12.85%
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, 2016 was $33.2 million. Approximately 55.7%, or $18.5 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, $9.4 million are restricted net position and are subject to external restrictions on how they may be spent.
At September 30, 2016, Miami Shores Village had an unrestricted net position of $5.3 million. At the end of the current fiscal
year, Miami Shores Village is able to report positive balances in all three categories of net position, both for the government as
a whole, as well as for its separate governmental and business-type activities.
Continued on next page
6
Governmental activities. Financial activities for the fiscal year are reported below. Key indicators, including revenues and
expenditures by category are presented herein for review:
Business-type activities
2016 2015 2016 2015 2016 2015 2015-2016
Revenues:
Program revenues:
Charges for services 3,741$ 3,803$ 2,886$ 2,884$ 6,627$ 6,687$ -0.90%
Operating grants & Contributions 798 816 - - 798 816 -2.21%
Capital grants and Contributions - 35 3,691 672 3,691 707 422.07%
General Revenues:
Property taxes 7,326 6,894 - - 7,326 6,894 6.27%
Other taxes 2,141 2,200 - - 2,141 2,200 -2.68%
Intergovernmental revenues 1,092 1,027 - - 1,092 1,027 6.33%
Interest earnings - unrestricted 26 29 57 6 83 35 137.14%
Miscellaneous 508 828 - - 508 828 -38.65%
Total revenues 15,632 15,632 6,634 3,562 22,266 19,194 16.01%
Expenses:
General government 3,377 3,159 - - 3,377 3,159 6.90%
Public safety 6,461 6,089 - - 6,461 6,089 6.11%
Highways Streets 2,503 3,492 - - 2,503 3,492 -28.32%
Sanitation / Stormwater / Water & Sewer - - 2,828 2,417 2,828 2,417 17.00%
Culture & recreation 3,145 2,976 - - 3,145 2,976 5.68%
Interest on Long-term Debt 169 272 - - 169 272 -37.87%
Total expenses 15,655 15,988 2,828 2,417 18,483 18,405 0.42%
Increase(decrease) in net position before
Transfers (23) (356) 3,806 1,145 3,783 789 379.47%
Sale of capital assets - 523 - - - 523 -100.00%
Transfers 400 400 (400) (400) - - -
Increase(decrease) in net position 377 567 3,406 745 3,783 1,312 188.34%
Beginning net position (as restated)24,184 23,264 5,265 4,873 29,449 28,137 4.66%
Ending net position 24,561$ 23,831$ 8,671$ 5,618$ 33,232$ 29,449$ 12.85%
Miami Shores Village
Changes in Net Position
(in thousands)
Total
percentage
change Governmental activities Total primary government
Ending net position increased 3.1% during FY2016. Although revenues decreased by $900 thousand or 5.6%, expenses
decreased by $300 thousand or 2.1%. The increase in ending net position is attributable to revenues over expenses of $377
thousand and the continued implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions – an
amendment of GASB Statement No. 27. Under this Statement, the Village is required to record the net pension liability in the
government wide financial statements for the current year, as well as, having to restate the net position as of September 30,
2015. The amount of the restatement is $353 thousand due to the inclusion of the net pension liability in the business-type-
activities. The ending net position at September 30, 2015 of $23.8 million is restated to the beginning net position of $24.2
million at September 30, 2016.
Continued on next page
7
Figure A-1
Expenses and Program Revenues – Governmental Activities
For the Fiscal Year Ended September 30, 2016
$-
$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, 2016
Other taxes
21%
Charges for services
25%
Property Taxes
48%Investment earnings
0%
Other
6%
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 $3.4 million. This increase is due to the recognition of a
special assessment for the construction and maintenance for the construction and maintenance related to the NE Second Avenue
Business District Water & Sewer Project. Further, due to the continued implementation of GASB Statement No. 68, Accounting
and Financial Reporting for Pensions – an amendment of GASB Statement No. 27, the Village is required to record the net
pension liability in the business-type-activities for the current year, resulting in the restatement of the net position as of
September 30, 2015. The amount of the restatement is $353 thousand. The ending net position at September 30, 2015 of $5.6
million is restated to the beginning net position of $5.3 million at September 30, 2016. 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, 2016
Financial Analysis of the Government’s Funds
As noted earlier, Miami Shores Village uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental funds. The focus of the governmental funds for Miami Shores Village is to provide information on near-term
inflows, outflows and balances of spendable resources. Such information is useful in assessing the Village’s financing
requirements. In particular, the unassigned fund balance may serve as a useful indicator of the governments net resources
available for spending at the end of a fiscal year.
As of the end of the current fiscal year, the governmental funds for Miami Shores Village reported combined ending fund
balances of $14.2 million, a $900 thousand decrease compared to FY2015. Of this amount, $7.9 million reflects unassigned
fund balance, which is available for spending at the government’s discretion. The remainder of the fund balance is committed
or restricted to indicate that it is not available for new spending as those dollars have already been 1) committed to liquidate
contracts or encumbered fiscal obligations (outstanding purchase orders) valued at $582 thousand, 2) restricted for funds which
restrict how the funds may be spent of $5.7 million and 3) nonspendable for funds used to account for amounts which cannot
currently be spent, such as prepaid expenses of $8 thousand.
The General Fund is the primary operating fund of the Village. At the end of the current fiscal year, the unassigned fund
balance for the General Fund was $7.9 million as compared with $8.5 million in the prior year.
The Village's General Fund balance decreased by $721 thousand during the 2016 fiscal year. It was anticipated that the deficit
would be $1.4 million due to the purchase of a building and other capital improvements. However, as a result of departmental
savings due to unfilled vacant positions and other lower than budgeted cost savings the deficit was less than expected.
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
SanitationStormwaterWater & Sewer
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 $854
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 $45 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 2016, the fund balance increased $25 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 $1.1 million, an $800 thousand decrease in
unrestricted net position due to the purchase of capital assets. 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 $897 thousand, a $7 thousand decrease 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 Vill age’s code allows for
department level budget transfers without council approval; however, department and fund total changes require Council-
approved budget amendments adopted by resolution.
The Village’s policy is to adopt the budget following the second public hearing of each fiscal year, held in September for an
October 1st year. The Village has also adopted a policy which provides for the reappropriation of committed fund balance for
encumbrances. This amendment is usually adopted as the first budget amendment of each fiscal year and is normally presented
at the first meeting in November of each fiscal year. Additional budget amendments may be presented to council at any time
during the fiscal year.
Over the course of the year, the Village amended the General Fund budget 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 $968 thousand below final budgeted amounts. Savings were realized in general government,
$372 thousand, public safety, $351 thousand, public works, $79 thousand, and culture and recreation, $166 thousand. These
savings in general government costs and various departmental costs were due to staff vacancies and conservative spending.
The fiscal year 2016 final amended budget was $16 million, an increase of 9.6 % over the original General Fund budget of
$14.6 million. Correspondingly, the Consumer Price Index (or inflation index) from the U.S. Bureau of Labor Statistics – All
Urban Consumers for the past year was 1.5%. The final Adopted Budget is balanced with revenues of $11.8 million, $2.8
million in operating transfers from Excise Tax, Sanitation Fund and Stormwater Fund and $1.4 million from fund balance. Cost
savings of $968 thousand reduced the fund balance appropriation to $721 thousand. These savings were due to staff vacancies
and the delay of anticipated professional studies.
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, 2016 amounts to $28.3 million (net of accumulated depreciation). The increase of $4 million is related to the
purchase of a building for $1.1 million and a water and sewer project in the Northeast Second Avenue Business District. The
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 Village’s investments in capital assets.
Miami Shores Village
Capital Assets as of September 30, 2016 and 2015
(net of depreciation, in thousands)
Governmental Activities Business-Type Activities Total
Classification 2016 2015 2016 2015 2016 2015
Land $ 2,358,437 $ 2,358,437 $ - $ - $ 2,358,437 $ 2,358,437
Construction in progress 409,304 546,876 3,691,488 523,164 4,100,792 1,070,040
Building 9,782,782 8,927,774 - - 9,782,782 8,927,774
Land Improvement 1,408,375 1,619,924 - - 1,408,375 1,619,924
Infrastructure 5,867,489 5,905,459 1,075,103 1,956,807 6,942,592 7,862,266
Machinery and equipment 1,768,027 1,627,699 1,888,271 828,203 3,656,298 2,455,902
Totals $ 21,594,414 $ 20,986,169
$ 6,654,862 $ 3,308,174 $ 28,249,276 $ 24,294,343
Additional information on Miami Shores Village’s capital assets may be found in Note 6 on Pages 39 to 40 of this report.
Long-term Liabilities. At September 30, 2016, Miami Shores Village had $22.8 million in long-term liabilities, which are
summarized in the schedule below. The increase of $6.2 million is related to a note payable of $5 million for the construction of
a water and sewer project in the Northeast Second Avenue Business District and 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 7 on Pages 40 to 42 of this report.
Miami Shores Village
Outstanding Long-term Liabilities as of September 30, 2016 and 2015
Governmental Activities Business-type activities Total Primary Government
2016 2015 2016 2015 2016 2015
General obligation bonds $ 5,596,900 $ 5,895,300 $ - $ - $ 5,596,900 $ 5,895,300
Other debt 590,938 950,427 4,840,000 - 5,430,938 950,427
Total bonds and notes payable 6,187,838 6,845,727 4,480,000 - 11,027,838 6,845,727
Other liabilities:
OPEB liability 731,251 632,802 129,839 112,359 861,090 745,161
Estimated insurance claims payable 340,000 340,000 - - 340,000 340,000
Compensated absences 688,081 681,646 109,796 112,620 797,877 794,266
Net pension liability 9,268,260 7,499,927 498,750 374,726 9,767,010 7,874,653
Total $17,215,430 $16,000,102 $5,578,385 $599,705 $22,793,815 $16,599,807
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 restricted 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 2016 reflected an increase of $485 thousand, precipitated by an increase in property values
of $72 million or 8.6% in property values as compared with 2015. 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 2016 showed an increase of $72 million, increasing property tax revenues by $485 thousand.
During the current fiscal year, unassigned fund balance in the General Fund was $7.9 million, a decrease of $600 thousand
compared to the unreserved fund balance in 2015 of $8.5 million. This $7.9 million is approximately equal to 6.5 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 2017 budgeted
expenditures and transfers are expected to be $15.8 million, or 7.6%, higher than the fiscal year 2016 budget of $14.7 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, 2006-2016
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
8000000
9000000
2007200820092010201120122013201420152016
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, 2007-2016
0
2
4
6
8
10
2007200820092010201120122013201420152016
Operating Millage Debt Service Millage
Fiscal year 2017 budgeted expenditures and transfers are expected to increase $1.1 million compared with fiscal year 2016.
This increase in expenditures is required to meet the ongoing needs of the Village and to fund capital improvement projects.
Requests for Information
This financial report is designed to provide a general overview of Miami Shores Village s’ finances to our citizens, taxpayers,
customers, investors, creditors, and others with an interest in the Villages’ finances. Questions concerning this report or
requests for additional financial information should be directed to the Finance Director, Holly Hugdahl, CPA, CGMA.
MIAMI SHORES VILLAGE
Finance Department
10050 Northeast Second Avenue
Miami Shores, Florida 33138-2382
BASIC FINANCIAL STATEMENTS
Business-
Governmental Type
Activities Activities Total
ASSETS
Cash and cash equivalents 15,832,636$ 4,719,236$ 20,551,872$
Investments 300,395 - 300,395
Accounts receivable - net 1,125,853 387,071 1,512,924
Special assessment receivable - 3,614,713 3,614,713
Prepaid items 174,656 - 174,656
Inventories 46,919 64,556 111,475
Restricted assets:
Cash and cash equivalents - 6,961 6,961
Capital assets not being depreciated 2,767,741 3,691,488 6,459,229
Capital assets being depreciated, net 18,826,673 2,963,374 21,790,047
Total assets 39,074,873 15,447,399 54,522,272
DEFERRED OUTLOWS OF RESOURCES
Pension 3,954,528 258,447 4,212,975
LIABILITIES
Accounts payable and accrued liabilities 602,023 667,268 1,269,291
Unearned revenues 58,966 787,947 846,913
Accrued interest payable 25,957 - 25,957
Noncurrent liabilities:
The amount due in one year 678,547 187,448 865,995
The amount due in more than one year 16,536,883 5,390,937 21,927,820
Total liabilities 17,902,376 7,033,600 24,935,976
DEFERRED INFLOWS OF RESOURCES
Business license tax 87,400 - 87,400
Pension 478,196 801 478,997
Total deferred inflows of resources 565,596 801 566,397
NET POSITION
Net investment in capital assets 15,398,737 3,123,374 18,522,111
Restricted for:
Water & Sewer - 3,691,488 3,691,488
Public safety 1,500,335 - 1,500,335
Transportation 1,514,432 - 1,514,432
Debt service 1,127,918 - 1,127,918
Charter school 963,129 - 963,129
Recreation 604,510 - 604,510
Unrestricted 3,452,368 1,856,583 5,308,951
Total net position 24,561,429$ 8,671,445$ 33,232,874$
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF NET POSITION
SEPTEMBER 30, 2016
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 3,377,218$ 1,366,832$ -$ -$ (2,010,386)$ -$ (2,010,386)$
Public safety 6,460,583 790,598 14,822 - (5,655,163) - (5,655,163)
Public works 2,502,799 194,349 783,490 - (1,524,960) - (1,524,960)
Culture and recreation 3,145,255 1,388,906 - - (1,756,349) - (1,756,349)
Interest on long-term debt 168,811 - - - (168,811) - (168,811)
Total governmental activities 15,654,666 3,740,685 798,312 - (11,115,669) - (11,115,669)
Business-type activities:
Sanitation 2,528,666 2,633,013 - - - 104,347 104,347
Stormwater 237,712 245,269 - - - 7,557 7,557
Water & Sewer 62,204 7,876 - 3,691,488 - 3,637,160 3,637,160
Total business-type activities 2,828,582 2,886,158 - 3,691,488 - 3,749,064 3,749,064
Total 18,483,248$ 6,626,843$ 798,312$ 3,691,488$ (11,115,669)$ 3,749,064$ (7,366,605)$
General revenues:
Property taxes, levied for general purpose 7,326,125$ -$ 7,326,125$
Public service taxes 2,141,094 - 2,141,094
Intergovernmental (unrestricted)1,092,365 - 1,092,365
Investment income (unrestricted)26,210 56,905 83,115
Miscellaneous 507,592 - 507,592
Transfers 400,000 (400,000) -
Total general revenues 11,493,386 (343,095) 11,150,291
Change in net position 377,717 3,405,969 3,783,686
Net position, beginning, as previously stated 23,831,340 5,617,848 29,449,188
Restatement of net position (see Note 14)352,372 (352,372) -
Net position, beginning, as restated 24,183,712 5,265,476 29,449,188
Net position, ending 24,561,429$ 8,671,445$ 33,232,874$
MIAMI SHORES VILLAGE, FLORIDA
FISCAL YEAR ENDED SEPTEMBER 30, 2016
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 7,671,573$ 487,486$ 1,465,279$ 1,614,672$ 2,508,380$ 13,747,390$
Investments 300,395 - - - - 300,395
Accounts receivable - net 370,763 366,587 14,338 - 172,363 924,051
Prepaid items 7,786 - - - - 7,786
Total assets 8,350,517$ 854,073$ 1,479,617$ 1,614,672$ 2,680,743$ 14,979,622$
LIABILITIES
Accounts payable and accrued liabilities 240,241$ -$ 594$ 319,653$ 15,226$ 575,714$
Unearned revenues 57,288 - - - 1,678 58,966
Total liabilities 297,529 - 594 319,653 16,904 634,680
DEFERRED INFLOWS OF RESOURCES
Business license tax 87,400 - - - - 87,400
FUND BALANCES
Nonspendable 7,786 - - - - 7,786
Restricted - 854,073 1,479,023 1,295,019 2,082,209 5,710,324
Committed - - - - 581,630 581,630
Unassigned 7,957,802 - - - - 7,957,802
Total fund balances 7,965,588 854,073 1,479,023 1,295,019 2,663,839 14,257,542
Total liabilities, deferred inflows of resources, and
fund balances 8,350,517$ 854,073$ 1,479,617$ 1,614,672$ 2,680,743$ 14,979,622$
MIAMI SHORES VILLAGE, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2016
Major Funds
See notes to basic financial statements
15
Fund balances - total governmental funds (Page 15)14,257,542$
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 41,160,170$
Less accumulated depreciation (21,602,365)
19,557,805
Deferred inflows/outflows of resources in the statement of net position
will be recognized in future periods
Deferred outflows related to pension 3,898,000
Deferred inflows related to pension (478,020)
3,419,980
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 (6,187,838)
OPEB liability (731,251)
Net pension liability (9,159,172)
Accrued interest payable (25,957)
Compensated absences (671,002) (16,775,220)
Net position of internal service funds are not reported with governmental funds 4,101,322
Net position of governmental activities (Page 13)24,561,429$
SEPTEMBER 30, 2016
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 6,864,998$ -$ -$ -$ 461,127$ 7,326,125$
Public service taxes - 2,141,094 - - - 2,141,094
Licenses and permits 1,257,228 - - - - 1,257,228
Intergovernmental revenues 1,092,365 - - - 798,312 1,890,677
Charges for services 1,732,617 - - - - 1,732,617
Fines and forfeitures 352,026 - 163,032 - 2,590 517,648
Miscellaneous 357,494 - 60,270 88,701 1,127 507,592
Interest income 14,492 - 2,834 2,338 4,485 24,149
Total revenues 11,671,220 2,141,094 226,136 91,039 1,267,641 15,397,130
Expenditures:
Current:
General government 3,002,107 - - 23,799 19,822 3,045,728
Public safety 6,245,528 - 64,220 - - 6,309,748
Public Works 1,498,996 - - - 491,604 1,990,600
Culture and recreation 2,677,817 - - 42,390 - 2,720,207
Capital outlay - - 207,276 - 1,720,048 1,927,324
Debt service:
Principal - - - - 657,889 657,889
Interest - - - - 168,811 168,811
Total expenditures 13,424,448 - 271,496 66,189 3,058,174 16,820,307
(Deficiency) excess of revenues
over expenditures before
other financing sources (uses)(1,753,228) 2,141,094 (45,360) 24,850 (1,790,533) (1,423,177)
Other financing sources (uses):
Transfers in 2,675,350 - - - 1,798,962 4,474,312
Transfers (out)(1,643,262) (2,275,350) - - (93,700) (4,012,312)
Total other financing sources (uses)1,032,088 (2,275,350) - - 1,705,262 462,000
Net change in fund balances (721,140) (134,256) (45,360) 24,850 (85,271) (961,177)
Fund balance, beginning, as previously reported 8,588,896 988,329 1,524,383 1,270,169 2,749,110 15,120,887
Prior period adjustment (See Note 14)97,832 - - - - 97,832
Fund balance, beginning, as restated 8,686,728 988,329 1,524,383 1,270,169 2,749,110 15,218,719
Fund balance, ending 7,965,588$ 854,073$ 1,479,023$ 1,295,019$ 2,663,839$ 14,257,542$
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
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)(961,177)$
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 capitalized 1,822,262$
Less current year depreciation (1,291,044)
Net adjustment 531,218
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.
Principal payments 657,889
657,889
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 and other deferral amounts (15,760)
Change in compensated absences (6,636)
Change in OPEB liability (98,449)
Change in accrued interest payable (5,664)
Allocation of internal service funds' net income 276,296$
149,787
Change in net position of governmental activities (Page 14)377,717$
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
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 1,873,376$ 1,009,190$ 1,836,670$ 4,719,236$ 2,085,246$
Accounts receivable - net 364,090 22,981 - 387,071 201,802
Special assessment receivable - - 3,614,713 3,614,713 -
Inventories 64,556 - - 64,556 46,919
Prepaid items - - - - 166,870
Restricted assets:
Cash and cash equivalents - - 6,961 6,961 -
Total current assets 2,302,022 1,032,171 5,458,344 8,792,537 2,500,837
Capital assets:
Capital assets not being depreciated - - 3,691,488 3,691,488 7,127
Capital assets being depreciated, net 1,075,103 1,888,271 - 2,963,374 2,029,482
Total noncurrent assets 1,075,103 1,888,271 3,691,488 6,654,862 2,036,609
Total assets 3,377,125 2,920,442 9,149,832 15,447,399 4,537,446
DEFERRED OUTLOWS OF RESOURCES
Pension 244,350 14,097 - 258,447 56,528
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 59,379 39,757 568,132 667,268 26,309
Unearned revenues 672,435 63,502 52,010 787,947 -
Compensated absences 26,589 859 - 27,448 4,270
Notes payable - - 160,000 160,000 -
Total current liabilities 758,403 104,118 780,142 1,642,663 30,579
Non-current liabilities:
Compensated absences 79,772 2,576 - 82,348 12,809
Notes payable - - 4,680,000 4,680,000 -
Net pension liability 471,547 27,203 - 498,750 109,088
OPEB liability 115,413 14,426 - 129,839 -
Claims payable - - - - 340,000
Total noncurrent liabilities 666,732 44,205 4,680,000 5,390,937 461,897
Total liabilities 1,425,135 148,323 5,460,142 7,033,600 492,476
DEFERRED INFLOWS OF RESOURCES
Pension 757 44 - 801 176
NET POSITION
Net investment in capital assets 1,075,103 1,888,271 160,000 3,123,374 2,036,609
Restricted for:
Capital activites - - 3,691,488 3,691,488 -
Unrestricted 1,120,480 897,901 (161,798) 1,856,583 2,064,713
Total net position 2,195,583$ 2,786,172$ 3,689,690$ 8,671,445$ 4,101,322$
Enterprise Funds
Business-type Activities -
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2016
See notes to basic financial statements
19
Governmental
Activities -
Internal
Service
Sanitation Stormwater Water & Sewer Total Funds
Operating revenues:
Charges for services 2,633,013$ 245,269$ 7,876$ 2,886,158$ 1,902,164$
Operating expenses:
Administrative and general 865,801 69,267 - 935,068 588,928
Personnel expenses 969,324 70,585 - 1,039,909 230,761
Depreciation 184,467 79,276 - 263,743 194,916
Contractual services 509,074 18,584 - 527,658 -
Insurance premiums and claims - - - - 654,367
Total operating expenses 2,528,666 237,712 - 2,766,378 1,668,972
Operating income 104,347 7,557 7,876 119,780 233,192
Non-operating revenues (expenses):
Interest income 3,437 938 326 4,701 2,061
Interest - special assessment - - 52,204 52,204 -
Interest expense - - (52,204) (52,204) -
Other expenses - - (10,000) (10,000) -
Total non-operating revenues 3,437 938 (9,674) (5,299) 2,061
Income before transfers and contributions 107,784 8,495 (1,798) 114,481 235,253
Transfers out (350,000) (50,000) - (400,000) (62,000)
Contributions - - 3,691,488 3,691,488 103,043
Change in net position (242,216) (41,505) 3,689,690 3,405,969 276,296
Net position, beginning, as previously reported 2,756,142 2,861,706 - 5,617,848 3,863,422
Prior period adjustment (See Note 14)(318,343) (34,029) - (352,372) (38,396)
Net position, beginning, as restated 2,437,799 2,827,677 - 5,265,476 3,825,026
Net position, ending 2,195,583$ 2,786,172$ 3,689,690$ 8,671,445$ 4,101,322$
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, 2016
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 2,638,054$ 246,493$ 59,886$ 2,944,433$ 1,843,068$
Cash paid to suppliers (1,319,697) (48,797) 44,968 (1,323,526) (1,289,305)
Cash paid for employees (966,863) (81,439) - (1,048,302) (207,009)
Net cash provided by operating activities 351,494 116,257 104,854 572,605 346,754
Cash flows from non-capital financing activities:
Transfers out (350,000) (50,000) - (400,000) (62,000)
Net cash (used in) non-capital financing activities (350,000) (50,000) - (400,000) (62,000)
Cash flows from capital related financing activities:
Acquisition and construction of capital assets (431,367) (10,740) (3,168,324) (3,610,431) (271,943)
Special assessments received - - 76,775 76,775 -
Capital contributions - - - - 103,043
Proceeds from notes - - 4,840,000 4,840,000 -
Issuance cost - - (10,000) (10,000) -
Interest paid on capital debt - - (42,204) (42,204) -
Net cash provided by (used in) capital and
related financing activities (431,367) (10,740) 1,696,247 1,254,140 (168,900)
Cash flows from investing activities:
Interest on special assessment - - 52,204 52,204 -
Interest and other income 3,437 938 (9,674) (5,299) 2,061
Net cash provided by investing activities 3,437 938 42,530 46,905 2,061
Net increase (decrease) in cash and cash equivalents (426,436) 56,455 1,843,631 1,473,650 117,915
Cash and cash equivalents, October 1 2,299,812 952,735 - 3,252,547 1,967,331
Cash and cash equivalents, September 30 1,873,376$ 1,009,190$ 1,843,631$ 4,726,197$ 2,085,246$
Reported in statement of net position as follows:
Unrestricted 1,873,376$ 1,009,190$ 1,836,670$ 4,719,236$ 2,085,246$
Restricted - - 6,961 6,961 -
1,873,376$ 1,009,190$ 1,843,631$ 4,726,197$ 2,085,246$
Reconciliation of operating income to net cash
provided by operating activities:
Operating income 104,347$ 7,557$ 7,876$ 119,780$ 233,192$
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation 184,467 79,276 - 263,743 194,916
Change in assets and liabilities:
(Increase) decrease in:
Accounts receivable 6,987 1,246 - 8,233 (59,096)
Inventories 8,870 - - 8,870 (910)
Prepaids - - - - (14,269)
Deferred outflows of resources for pension (143,165) (3,280) - (146,445) (44,324)
Increase (decrease) in:
Accounts payable and accrued liabilities 46,308 39,054 568,132 653,494 (30,831)
Compensated absences (2,387) (437) - (2,824) (201)
OPEB liability 15,538 1,942 - 17,480 -
Due to other funds - - (523,164) (523,164) -
Unearned revenues (1,946) (22) 52,010 50,042 -
Net Pension Liability 133,009 (8,985) - 124,024 68,257
Deferred inflows of resources for pension (534) (94) - (628) 20
Total adjustments 247,147 108,700 96,978 452,825 113,562
Net cash provided by operating activities 351,494$ 116,257$ 104,854$ 572,605$ 346,754$
Noncash capital related financing activities:
Contributions -$ -$ 3,614,713$ 3,614,713$ -$
Total noncash capital related financing activities -$ -$ 3,614,713$ 3,614,713$ -$
Enterprise Funds
Business-type Activities -
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2016
See notes to basic financial statements
21
Pension Private
Trust Purpose
Funds Trust Agency
ASSETS
Cash and cash equivalents 925,907$ 1,426,315$ 179,739$
Receivables:
Accrued interest and dividends 56,599 - -
Total receivables 56,599 - -
Investments, at fair value
U.S. Government securities 3,723,889 - -
Municipal bonds 88,077 - -
Corporate/Foreign bonds 4,080,092 - -
Mutual funds - equity 16,303,216 - -
Common stocks 4,996,529 - -
Mortgage Backed Securities 3,420,376 - -
ETF 11,513 - -
Total investments 32,623,692 - -
Total assets 33,606,198 1,426,315 179,739
LIABILITIES
Accounts payable and accrued expenses 57,023 - -
DROP payable 68,910 - -
Other liabilities - - 179,739
Total liabilities 125,933 - 179,739
NET POSITION
Net position resticted for pensions and charter school 33,480,265$ 1,426,315$ -$
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
SEPTEMBER 30, 2016
See notes to basic financial statements
22
Pension Private
Trust Purpose
Funds Trust
ADDITIONS
Contributions:
Employer 1,493,650$ -$
Employees 380,211 -
State of Florida 95,281 -
Total contributions 1,969,142 -
Investment income:
Unrealized gains 637,632 -
Realized gains 974,160 -
Interest and dividend income 1,453,237 2,590
Total investment income 3,065,029 2,590
Less investment expenses (171,746) -
Net investment income 2,893,283 2,590
Total additions 4,862,425 2,590
DEDUCTIONS
Benefits paid 1,663,040 -
Administrative expenses 148,129 -
Total deductions 1,811,169 -
Net increase 3,051,256 2,590
Net position resticted for pensions and charter school
Beginning of year 30,429,009 1,423,725
End of year 33,480,265$ 1,426,315$
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
See notes to basic financial statements
23
NOTES TO BASIC FINANCIAL STATEMENTS
24
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
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 BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
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 BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
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 are
reported as non-operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is Village policy to use restricted
resources first, and then unrestricted resources as needed.
27
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
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, 2016, the Village implemented the following GASB Statements that
had an impact on the financial statements:
Statement No. 72, Fair Value Measurement and Application. This statement addresses accounting and
financial reporting issues related to fair value measurements.
Statement No. 79, Certain External Investment Pools and Pool Participants. This statement addresses
accounting and financial reporting for certain external investment pools and pool participants.
Statement No. 82, Pension Issues – an amendment of GASB Statement No. 67, No. 68, and No. 73. This
statement addresses certain issues that have been raised with respect to Statements No. 67, Financial
Reporting for Pension Plans, No. 68, Accounting and Financial Reporting for Pensions, and No. 73,
Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of
GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68.
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 pooled cash 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.
28
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
F. Inventories and Prepaid Items (Continued)
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded – in both, the
government-wide and fund financial statements – as prepaid items by recording an asset for the prepaid amount
and recognizing the expenditure in the year such item is consumed (consumption method). Amounts reported in
the governmental funds are offset by an equal reservation of fund balance in the fund financial statements. This
is an indication that these components of current assets do not constitute available spending resources.
G. Property Taxes
Property values are assessed as of January 1 of each year, at which time taxes become an enforceable lien on
the property. Tax bills are mailed for the Village by Miami Dade County on or about October 1 of each year and
are payable with discounts of up to 4% offered for early payment. Taxes become delinquent on April 1 of the
year following the year of assessment and State law provides for enforcement of collection of property taxes by
seizure of the personal property or by the sale of interest-bearing tax certificates to satisfy unpaid property taxes.
Assessed values are established by the Miami-Dade County Property Appraiser. In November 1992, a Florida
constitutional amendment was approved by the voters, which provides for limiting the increases in homestead
property valuations for ad valorem tax purposes to a maximum of 3% annually and also provides for
reassessment of market values upon changes in ownership. The County bills and collects all property taxes and
remits them to the Village.
State statutes permit municipalities to levy property taxes at a rate of up to 10 mills ($10 per $1,000 of assessed
taxable valuation). The tax levy of the Village is established by the Village Council and the Miami-Dade County
Property Appraiser incorporates the Village’s millage into the total tax levy, which includes the County and the
County School Board tax requirements. The millage rate assessed by the Village for the year ended September
30, 2016 was 8.4289 mills ($8.4289 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.
29
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
I. Capital Assets (Continued)
Capital assets of the Village are depreciated using the straight line method over the following estimated useful
lives:
Assets Years
Buildings and improvements 10-40
Land improvements 40
Infrastructure 30
Sanitation equipment 10
Vehicles 5
Other equipment, machinery, furniture and fixtures 3-10
J. Deferred 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 amounts that qualify for reporting in this
category on the government-wide statement of net position in the amount of $4,212,975.
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 local business licenses taxes and pension expenses that quality for
reporting in this category in the amount of $ 87,400 and $478,997, respectively.
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.
30
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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 16-17 fiscal year.
M. Employee Benefit Plan
The Village provides a separate defined benefit pension plan for its police officers and general employees. At
September 30, 2016, 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 expensed as
incurred except for insurance cost which are amortized over the term of the related debt. For proprietary fund
types, bonds payable are reported net of the applicable bond premium or discount.
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 as
incurred.
31
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
P. Net Position
Total net position as of September 30, 2016, 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, excluding unexpended proceeds.
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 does not meet the
definition of the other two categories.
Q. Fund Balance
As of September 30, 2016, 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 and resoultions 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 - This fund balance is the residual classification for the General Fund. The General Fund is the
only fund that reports a positive unassigned fund balance amount. This category is also used to report
negative fund balances in other governmental funds.
32
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
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.
OtherTotal
ExcisePoliceGeneralGovernmentalGovernmental
General Tax Forfeiture Trust Funds Funds
Fund Balances:
Nonspendable:
Prepaids 7,786$ -$ -$ -$ -$ 7,786$
Restricted:
Transportation - 854,073 - - 660,359 1,514,432
Library - - - 57,236 272,620 329,856
Recreation - - - 111,225 - 111,225
Buildings - - - 163,429 - 163,429
Charter School - - - 963,129 - 963,129
Public Safety - - 1,479,023 - 21,312 1,500,335
Debt service - - - - 1,127,918 1,127,918
Committed:
Capital projects - - - - 581,630 581,630
Unassigned:7,957,802 - - - - 7,957,802
Total Fund Balances 7,965,588$ 854,073$ 1,479,023$ 1,295,019$ 2,663,839$ 14,257,542$
Fund Balances:
Nonspendable 7,786$ -$ -$ -$ -$ 7,786$
Restricted - 854,073 1,479,023 1,295,019 2,082,209 5,710,324
Committed - - - - 581,630 581,630
Unassigned 7,957,802 - - - - 7,957,802
Total Fund Balances 7,965,588$ 854,073$ 1,479,023$ 1,295,019$ 2,663,839$ 14,257,542$
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 ha ve been depleted before
unrestricted-net position is applied.
S. Fund Balance Flow Assumption
Sometimes the Village will fund outlays for a particular purpose from both restricted and unrestricted resources
(the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as
restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements, a
flow assumption must be made about the order in which the resources are considered to be applied. It Is the
Village’s policy to consider restricted fund balance to have been depleted before using any of the components of
unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same
purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance,
if any, is applied last.
33
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
T. Capital Contributions
Capital contributions in proprietary fund financial statements arise from grants or outside contributions of
resources restricted to capital acquisition and construction.
U. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions that affect the amounts of assets,
liabilities, disclosures of contingent liabilities, revenues and expenditures/expenses reported in the financial
statements and accompanying notes. These estimates include assessing the collectibility of receivables, the
realization of pension obligations, 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, 2016, the Village complied, in all material respects, with these revenue
restrictions.
34
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
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 (SBA). 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 position in the Florida PRIME is equal to the value
of the pool shares.
Additionally, the Office of the Auditor General of the State of Florida performs the operational audit of the
activities and investment of the SBA. The SBA accounts are not subject to custodial credit risk as these
investments are not evidenced by securities that exist in physical or bank entry form.
In accordance with GASB Statement No. 79, Certain External Investment Pools and Pool Participants, the
Village’s investment in the Florida PRIME meets the definition of a qualifying investment pool that measures for
financial reporting purposes all of its investments at amortized cost and should disclose the presence of any
limitations or restrictions on withdrawals. As of September 30, 2016, there were no redemption fees or maximum
transaction amounts, or any other requirements that serve to limit a participant’s daily ac cess to 100 percent of
their account value.
Investments – Village
As of September 30, 2016, the Village had the following investments:
Investment Type Fair Value
SBA - PRIME $ 300,395
Total $ 300,395
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. The weighted average days to maturity (WAM) of the Florida PRIME as of September 30,
2016 is 50 days. Next interest rate reset dates for floating rate securities are used in the calculation of the WAM.
The weighted average like (WAL) of Florida PRIME at September 30, 2016, is 70 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.
35
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 3 - DEPOSITS AND INVESTMENTS (Continued)
Investments – Village (Continued)
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, 2016, the value of each position held in the Village’s portfolio
comprised of less than 5% of the Village’s investment assets.
Investments – Pension Plans
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 rating of investment grade as determined by at
least one major credit rating service. 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% 50.00%
International Equity 15.00% 15.00%
Domestic Bonds 35.00% 35.00%
Rate of Return
For the fiscal year ending September 30, 2016, the annual money-weighted rate of return on pension plan
investments, net pension plan investment expense, was 8.73% for the General Employee Retirement Plan and
8.97% 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.
36
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 3 - DEPOSITS AND INVESTMENTS (Continued)
Rate of Return (Continued)
As of September 30, 2016, the Plans had the following investments and maturities:
General Employees' Retirement Plan
Fair Value Less than More than
Investment Type Value 1 Year 1-5 Years 6-10 Years 10 Years
U.S. Government Securities 1,271,157$ -$ 624,995$ 454,138$ 192,024$
Mortgage backed securities 1,208,172 - 403,334 18,477 786,361
Corporate Bonds 1,369,122 - 675,507 292,131 401,484
Total fixed income securities 3,848,451$ -$ 1,703,836$ 764,746$ 1,379,869$
Police Officers' Retirement Plan
Fair Value Less than More than
Investment Type Value 1 Year 1-5 Years 6-10 Years 10 Years
U.S. Government securities 2,540,809$ -$ 1,270,877$ 848,051$ 421,881$
Mortgage backed securities 2,212,204 - 639,186 36,953 1,536,065
Corporate bonds 2,710,970 - 1,399,039 576,902 735,029
Total fixed income securities 7,463,983$ -$ 3,309,102$ 1,461,906$ 2,692,975$
Interest Rate Risk – Interest rate risk is the risk that changes in market interest rates will adversely affect the fair
value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair
value to changes in market interest rates. As a means of limiting its exposure to interest rate risk, the Plan
diversifies its investments by security type and institution, and limits holdings in any one type of investment with
any one issuer with various durations of maturities.
Credit Risk – Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or
perceived change in the ability of the issuer to repay its debt. This risk is generally measured by the assignment
of a rating by a nationally recognized statistical rating organization. The Plan’s investment policy utilizes portfolio
diversification in order to control this risk. The Plan’s investment policies limit investments in fixed income
securities to a rating of investment grade or higher.
The following tables disclose credit ratings by investment type, at September 30, 2016:
General Employees' Retirement Plan
Moody's Percentage of
Quality Ratings of Credit Fixed Income
Risk Debt Securities Fair Value Portfolio
A1 73,374$ 1.91%
A2 65,130 1.69%
A3 347,145 9.02%
Aa1 46,860 1.22%
Aa2 69,266 1.80%
Aa3 116,461 3.03%
Aaa 1,644,355 42.73%
Baa1 146,929 3.82%
Baa2 274,220 7.13%
Baa3 151,163 3.93%
N/A 913,548 23.74%
Total 3,848,451$ 100.00%
37
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 3 - DEPOSITS AND INVESTMENTS (Continued)
Police Officers' Retirement Plan
Moody's Percentage of
Quality Ratings of Credit Fixed Income
Risk Debt Securities Fair Value Portfolio
A1 128,221$ 1.72%
A2 127,224 1.70%
A3 646,491 8.66%
Aa1 91,696 1.23%
Aa2 214,492 2.87%
Aa3 211,993 2.84%
Aaa 3,201,931 42.90%
Baa1 322,202 4.32%
Baa2 529,198 7.09%
Baa3 306,189 4.10%
N/A 1,684,346 22.57%
Total 7,463,983$ 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, 2016, 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.
NOTE 4 – FAIR VALUE MEASUREMENT
During the fiscal year 2016, the Village implemented Governmental Accounting Standard Board (GASB)
Statement No. 72, Fair Value Measurement and Application, which addresses accounting and financial reporting
issues related to fair value measurements.
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The Village categorizes its fair value
measurements within the fair value hierarchy established by generally accepted accounting principles. The
hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted
prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs
are significant unobservable inputs.
38
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 4 – FAIR VALUE MEASUREMENT (Continued)
The following is a description of the valuation methodologies used for the Plan’s investments measured at fair
value:
Fixed income securities are valued using pricing inputs that reflect the assumptions market participants woul d
use to price an asset or liability and are developed based on market data obtained from sources independent of
the reporting entity. This includes government securities, corporate bonds, and mortgage backed securities.
Equity securities traded on national or international exchanges are valued at the last reported sales price or
current exchange rates. This includes equity mutual funds, common stock, and exchange-traded fund.
The Plans have the following recurring fair value measurements as of September 30, 2016:
General Employees' Retirement Plan
Investment Type
Fair
Value
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Fixed income:
U.S. Government securities 1,271,157$ 1,239,129$ 32,028$ -$
Mortgage backed securities 1,208,172 - 1,208,172 -
Corporate/Foreign bonds 1,369,122 - 1,369,122 -
Total fixed income 3,848,451 1,239,129 2,609,322 -
Equity securities:
Mutual funds - equity 6,369,470 6,369,470 - -
Common stocks 1,838,943 1,838,943 - -
ETF 4,014 4,014 - -
Total equity securities 8,212,427 8,212,427 - -
Total investments by fair value level 12,060,878$ 9,451,556$ 2,609,322$ -$
Fair Value Measurements at Reporting date
Police Officers' Retirement Plan
Investment Type
Fair
Value
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Fixed income:
U.S. Government securities 2,540,809$ 2,484,760$ 56,049$ -$
Mortgage backed securities 2,212,204 - 2,212,204 -
Corporate/Foreign bonds 2,710,970 - 2,710,970 -
Total fixed income 7,463,983 2,484,760 4,979,223 -
Equity securities:
Mutual funds - equity 9,933,746 9,933,746 - -
Common stocks 3,157,586 3,157,586 - -
ETF 7,499 7,499 - -
Total equity securities 13,098,831 13,098,831 - -
Total investments by fair value level 20,562,814$ 15,583,591$ 4,979,223$ -$
Fair Value Measurements at Reporting date
39
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 5 - RECEIVABLES
Receivables as of September 30, 2016 for the Village’s individual major funds and non-major funds in the
aggregate consist of the following:
Water & Non-major Internal
Excise Tax Police Sanitation Stormwater Sewer Governmental Enterprise
General Fund Forfeiture Fund Fund Fund Funds Funds Total
Receivables:
Accounts -$ -$ -$ 364,090 22,981$ -$ -$ 201,802$ 588,873$
Taxes 323,808 366,587 - - - - 171,942 - 862,337
Special Assessment - - - - - 3,614,713 - - 3,614,713
Grants and other 46,955 - 14,338 - - - 421 - 61,714
Total receivables 370,763$ 366,587$ 14,338$ 364,090$ 22,981$ 3,614,713$ 172,363$ 201,802$ 5,127,637$
NOTE 6 - CAPITAL ASSETS
Capital assets activity for the fiscal year ended September 30, 2016 was as follows:
Governmental activities Beginning Increases Decreases Ending
Capital assets not being depreciated:
Land 2,358,437$ -$ -$ 2,358,437$
Construction in progress 546,876 30,164 (167,736) 409,304
Total capital assets not being depreciated 2,905,313 30,164 (167,736) 2,767,741
Capital assets being depreciated:
Building and improvements 12,746,372 1,124,416 - 13,870,788
Land improvements 4,816,280 - - 4,816,280
Infrastructure 17,781,416 413,308 - 18,194,724
Machinery and equipment 5,498,098 694,053 (41,879) 6,150,272
Total capital assets being depreciated 40,842,166 2,231,777 (41,879) 43,032,064
Less accumulated depreciation for:
Building and improvements (3,818,598) (269,408) - (4,088,006)
Land improvements (3,196,356) (211,549) - (3,407,905)
Infrastructure (11,875,957) (451,278) - (12,327,235)
Machinery and equipment (3,870,399) (553,725) 41,879 (4,382,245)
Total accumulated depreciation (22,761,310) (1,485,960) 41,879 (24,205,391)
Total capital assets being depreciated, net 18,080,856 745,817 - 18,826,673
Governmental activities capital assets, net 20,986,169$ $ 775,981 $ (167,736)21,594,414$
40
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 6 - CAPITAL ASSETS (Continued)
Business-type activities Beginning Increases Decreases Ending
Capital assets not being depreciated:
Construction in progress 523,164$ 3,168,324$ -$ 3,691,488$
Total capital assets not being depreciated 523,164 3,168,324 - 3,691,488
Capital assets being depreciated:
Machinery and equipment 1,940,092 431,367 (56,057) 2,315,402
Drainage improvements 2,678,970 10,740 - 2,689,710
Total capital assets being depreciated 4,619,062 442,107 (56,057) 5,005,112
Less accumulated depreciation for:
Machinery and equipment (1,111,889) (184,467) 56,057 (1,240,299)
Drainage improvements (722,163) (79,276) - (801,439)
Total accumulated depreciation (1,834,052) (263,743) 56,057 (2,041,738)
Total capital assets being depreciated, net 2,785,010 178,364 - 2,963,374
Business-type activities capital assets, net 3,308,174$ 3,346,688$ -$ 6,654,862$
Depreciation expense was charged to functions/programs of the Village as follows:
Governmental activities
General Government 137,141$
Public Safety 252,322
Public Works 692,044
Culture and Recreation 404,453
Total depreciation expense – governmental activities 1,485,960$
Business- type activities
Sanitation 184,467$
Stormwater 79,276
Total depreciation expense – business-type activities 263,743$
NOTE 7 - 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 $3,500,000 Promissory Note, Series 2006. The
note bears interest at a rate of 2.51% per annum. The Village pledged 25% of the local option fuel tax revenues
and sanitation fund revenues to secure the note. The note matures in May 2018 and requires quarterly principal
and interest payments throughout the life of the note.
Debt service requirements to maturity for the fiscal year ending September 30, 2016 are summarized as follows:
September 30,Principal Interest Total
2017 368,977$ 11,350$ 380,327$
2018 221,961 2,389 224,350
590,938$ 13,739$ 604,677$
41
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 7 - LONG-TERM DEBT (Continued)
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 $128,000 in 2017 to a final payment of
$169,000 in 2029. The bonds bear interest at variable rates ranging from 2.49 to 3.03%, payable semi-annually.
The bonds are secured by ad-valorem revenues.
Debt service requirements to maturity for the fiscal year ending September 30, 2016 are summarized as follows:
September 30,Principal Interest Total
2017 128,000$ 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 138,000 33,269 171,269
2022-2026 755,000 110,933 865,933
2027-2029 494,000 18,940 512,940
1,915,000$ 330,280$ 2,245,280$
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 177,300 in 2017 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 $947,000.
Debt service requirements to maturity for the fiscal year ending September 30, 2016 are summarized as follows:
September 30,Principal Interest Total
2017 177,300$ 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 193,400 74,887 268,287
2022-2026 1,043,900 298,127 1,342,027
2027-2031 1,190,600 158,397 1,348,997
2032-2033 520,400 19,916 540,316
3,681,900$ 898,035$ 4,579,935$
42
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 7 - LONG-TERM DEBT (Continued)
4. Florida Local Government Finance Commission
During fiscal year 2016, the Village entered into a pooled commercial paper loan agreement with the Florida
Local Government Finance Commission (FLGFC) for total available funds of $5,000,000 to finance various
capital improvements within the Village, including the water main and sewer system project construction in the
downtown area. The loan is collateralized by the Village’s non-ad valorem revenues. The variable interest rate is
paid monthly on the outstanding note balance. Other loan costs include various administrative fees and draw
down costs of $2,000 for each $1,000,000 of draw down. During the year, there were two draw downs for
$2,500,000 each. The outstanding balance under this agreement for the year ended September 30, 2016 is
$5,000,000 which is due on September 1, 2020.
Long-term debt activity for the fiscal year ended September 30, 2016 was as follows:
Due
Beginning Ending within
Balance (1)Increases Decreases Balance one year
Governmental activities
Bonds and notes payable:
Promissory Note, Series 2013 950,427$ -$ (359,489)$ 590,938$ 368,977$
Refunding General Obligation Bond,
Series 2013 2,040,000 - (125,000) 1,915,000 128,000
Refunding General Obligation Bond,
Series 2015 3,855,300 - (173,400) 3,681,900 177,300
Total bonds and notes payable 6,845,727 - (657,889) 6,187,838 674,277
Other liabilities:
OPEB liability 632,802 98,449 -731,251 -
Claims payable 340,000 - - 340,000 -
Compensated absences 681,646 533,144 (526,709) 688,081 4,270
Net pension liability 7,499,927 3,670,756 (1,902,423) 9,268,260 -
Total other liabilities 9,154,375 4,302,349 (2,429,132) 11,027,592 4,270
Governmental activity long-term liabilities 16,000,102$ 4,302,349$ (3,087,021)$ 17,215,430$ 678,547$
Business-type activities
FLGFC Notes Payable -$ 5,000,000$ (160,000)$ 4,840,000$ 160,000$
Other liabilities:
OPEB liability 112,359 17,480 - 129,839 -
Compensated absences 112,620 60,544 (63,368) 109,796 27,448
Net pension liability 374,726 212,243 (88,219) 498,750 -
Business-type activities long-term liabilities 599,705$ 5,290,267$ (311,587)$ 5,578,385$ 187,448$
(1) As restated, see Note 14
43
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 8 - INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Interfund transfer activity for the year ended September 30, 2016 was as follows:
Transfers In Transfers Out
General Fund $ 2,675,350 $ 1,643,262
Excise Tax - 2,275,350
Sanitation Fund - 350,000
Stormwater Fund - 50,000
Non-Major Governmental Funds 1,798,962 93,700
Internal Service Funds - 62,000
Total $ 4,474,312 $ 4,474,312
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.
The Excise Tax Fund transferred $2,275,350 to the General Fund for operating purposes after all debt
service requirements have been made.
The General Fund transferred $1,356,462 to the Capital Improvement Fund as funding for various ongoing
capital projects of the Village, including the purchase of the Archdiocese property for future use as a Village
facility.
NOTE 9 - 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, 2015 (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 57 28
Active participants: 65 25
Total members 122 53
44
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 9 - 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,
2016, there were 7 members in the DROP and their fair value of DROP investment was $635,349 which is
included in the Plan’s net position. At the end of September 30, 2016, total liabilities for the DROP were
$68,910.
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, 2016.
45
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 9 - 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, 2016. The contributions consisted of the
following at September 30, 2016:
Actual
Contribution
Percentage of
Covered Payroll
Village $ 371,453 11.81%
Members $ 188,786 N/A
Net Pension Liability:
Total pension liability $ 15,090,867
Plan fiduciary net position 12,299,360
Net pension liability $ 2,791,507
Plan fiduciary net position as a percentage of total pension liability 81.50%
Significant Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of October 1, 2015 and rolled forward to
the measurement date of September 30, 2016 using the following actuarial assumptions:
Interest rates:
Single discount rate 7.50%
Long-term expected rate of return 7.50%
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 o f
arithmetic real return for each asset class included in the pension plan’s target all ocation as of September 30,
2016 are summarized in the following table:
Asset Group
Long-Term Expected Real
Rate of Return
Domestic Equity 7.5%
International Equity 8.5%
Fixed Income 2.5%
46
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 9 - EMPLOYEE RETIREMENT PLANS – PLANS’ REPORTING (Continued)
A. General Employees’ Retirement Plan (Continued)
Discount Rate
A single discount rate of 7.50% 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 7.50%. 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 (7.50%) 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 7.50%, 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
1% Decrease Rate Assumption 1% Increase
6.50%7.50%8.50%
4,566,456$ $ 2,791,507 1,307,937$
Current Single Discount
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, 2016.
ASSETS
Cash and cash equivalents 307,345$
Investments, at fair value 12,060,878
Accrued interest receivable 19,404
Total assets 12,387,627
LIABILITIES AND NET POSITION
Accounts payable and accrued expenses 19,357
DROP payable 68,910
Total liabilities 88,267
Net position restricted for pensions 12,299,360$
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2016
47
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 9 - EMPLOYEE RETIREMENT PLANS – PLANS’ REPORTING (Continued)
A. General Employees’ Retirement Plan (Continued)
ADDITIONS
Contributions 560,239$
Net investment income 1,074,730
Total additions 1,634,969
DEDUCTIONS
Pension benefits 639,713
Administrative expenses 69,962
Total deductions 709,675
Increase 925,294
Net position restricted for pensions:
Beginning of year 11,374,066
End of year 12,299,360$
STATEMENT OF CHANGES IN PLAN NET POSITION
FISCAL YEAR ENDED SEPTEMBER 30, 2016
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 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.
48
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 9 - 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 70 1/4 years. As of September 30, 2016, there were 4 members in the DROP and
their fair value of DROP investment was $679,853 which is included in the Plan’s net position. At the end of
September 30, 2016, 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 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, 2016.
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, 2014 for the year ended September 30, 2016. The contributions consisted of the
following at September 30, 2016:
Actual
Contribution
Percentage of
Covered Payroll
Village $ 1,122,197 52.76%
State of Florida 95,281 4.48%
Total contributions from
Village and State of Florida 1,217,478 57.24%
Members $ 191,425 N/A
Net Pension Liability:
Total pension liability $ 28,022,822
Plan fiduciary net position 21,180,905
Net pension liability $ 6,841,917
Plan fiduciary net position as a percentage of total pension liability 75.58%
49
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 9 - 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, 2015 and rolled forward to
the measurement date of September 30, 2016, using the following actuarial assumptions:
Interest rates:
Single discount rate 7.50%
Long-term expected rate of return 7.50%
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 7.5%
International Equity 8.5%
Fixed Income 2.5%
Discount Rate
A single discount rate of 7.50% 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 7.50%. 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 (7.50%) 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 usi ng a single discount rate of 7.50%, 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
1% Decrease Rate Assumption 1% Increase
6.50%7.50%8.50%
10,502,232$ $ 6,841,917 3,844,022$
Current Single Discount
50
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 9 - 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, 2016.
ASSETS
Cash and cash equivalents 618,562$
Investments, at fair value 20,562,814
Accrued interest receivable 37,195
Total assets 21,218,571
LIABILITIES AND NET POSITION
Accounts payable and accrued expenses 37,666
Net position restricted for pensions 21,180,905$
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2016
ADDITIONS
Contributions 1,408,903$
Net investment income 1,818,553
Total additions 3,227,456
DEDUCTIONS
Pension benefits 1,023,327
Administrative expenses 78,167
Total deductions 1,101,494
Increase 2,125,962
Net position restricted for pensions:
Beginning of year 19,054,943
End of year 21,180,905$
STATEMENT OF CHANGES IN PLAN NET POSITION
FISCAL YEAR ENDED SEPTEMBER 30, 2016
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 and legal counsel believe that the Plan is currently
designed and being operated in compliance with the applicable requirements of the Code.
51
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 10 - EMPLOYEE RETIREMENT PLANS – VILLAGE’S REPORTING
As described in Note 9, 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 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 as of September 30, 2015 in the General Employees' Retirement Plan (as of October 1, 2013)
and the Police Officers' Retirement Plan (as of October 1, 2014) consisted of:
General
Employees
Police
Inactive employees:
Retirees and beneficiaries currently receiving benefits
and 49 23
Retirees entitled to benefits but not yet receiving them 8 2
Active participants: 70 27
Total members 127 52
52
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 10 - 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,
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.
53
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 10 - 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, 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:
The Village's net pension liability was measured as of September 30, 2015. The total pension liability used to
calculate the net pension liability was determined as of that date.
Significant Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of September 30, 2015, using the following
actuarial assumptions:
Interest rates:
Single discount rate 7.70%
Long-term expected rate of return 7.70%
Long-term municipal bond rate* 3.71%
Last year ending September 30 in the
2016 to 2115 projection period
for which projected benefit payments
are fully funded
2115
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.
* Source: “20-Bond GO Index” is the Bond Buyer Index, general obligation, 20 years to maturity, mixed
quality. In describing this index, the Bond Buyer notes that the bonds’ average credit quality is roughly
equivalent to Moody's Investors Service’s Aa2 rating and Standard & Poor’s Corp.’s AA. The rate shown is
as of September 24, 2015, the most recent date available on or before the measurement date.
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 7.5%
International Equity 8.5%
Fixed Income 2.5%
54
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 10 - 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, 2015 13,222,806$ 11,644,993$ 1,577,813$
Service Cost 325,868 - 325,868
Interest 1,018,010 - 1,018,010
Difference between actual & expected experience 106,918 - 106,918
Contributions - Employer - 371,453 (371,453)
Contributions - Member - 188,793 (188,793)
Benefit Payments (655,520) - (655,520)
Refunds - - -
Net Investment Income - (160,205) 160,205
Benefit Payments - (655,520) 655,520
Refunds - - -
Administrative Expense - (15,448) 15,448
Reporting period ending at September 30, 2016 14,018,082$ 11,374,066$ 2,644,016$
Plan Fiduciary Net Position as a Percentage of Total Pension Liability 81.14%
Covered Employee Payroll 3,146,550$
Net Pension Liability as a Percentage of Covered Employee Payroll 84.03%
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:
1% Decrease Rate Assumption 1% Increase
6.70%7.70%8.70%
4,314,609$ $ 2,644,016 1,247,840$
Current Single Discount
55
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 10 - 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, 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$
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$
STATEMENT OF CHANGES IN PLAN NET POSITION
FISCAL YEAR ENDED SEPTEMBER 30, 2015
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2015
Pension Expense and Deferred Outflows/(Inflows) of Resources
For the year ended September 30, 2016, the Village will recognize pension expense of $537,373. At September
30, 2016, the Village reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Net Deferred
Outflows of
Resources
Difference between expected and actual
experience 81,461$ (4,248)$ 77,213$
Changes in assumptions - - -
Net difference between projected and actual
earnings on pension plan investments 917,188 - 917,188
Employer contributions subsequent to the
measurement date 371,453 - 371,453
Total 1,370,102$ (4,248)$ 1,365,854$
56
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 10 - EMPLOYEE RETIREMENT PLANS – VILLAGE’S REPORTING (Continued)
A. General Employees’ Retirement Plan (Continued)
Pension Expense and Deferred Outflows/(Inflows) of Resources (Continued)
The Village contributions subsequent to the measurement date of $371,453 are reported as deferred outflows of
resources and will be recognized as a reduction of the net pension liability in the fiscal year ending September
30, 2017.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions
will be recognized in pension expense as follows:
Fiscal year
ending
September 30,
Net Deferred
Outflows of
Resources
2017 630,694$
2018 259,242
2019 260,305
2020 215,613
2021 -
Thereafter -
Total 1,365,854$
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.
57
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 10 - 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, 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 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.
Pursuant to Chapter 185, Florida Statutes, a portion of all insurance premium tax monies received in excess of
the threshold of $30,193 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. State contributions for fiscal year ending
September 30, 2015 were not received until after the end of the fiscal year and therefore are not permitted to be
used until the 2016 fiscal year.
The actual contribution from the Village for active members were actuarially determined using the actuarial
valuation as of October 1, 2014 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:
The Village's net pension liability was measured as of September 30, 2015 and the total pension liability used to
calculate the net pension liability was determined by the October 1, 2014 actuarial valuation.
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:
58
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 10 - 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, 2014, using the following
actuarial assumptions:
Interest rates:
Single discount rate 7.60%
Long-term expected rate of return 7.60%
Long-term municipal bond rate* 3.71%
Last year ending September 30 in the
2016 to 2115 projection period
for which projected benefit payments
are fully funded
2115
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.
* Source: “20-Bond GO Index” is the Bond Buyer Index, general obligation, 20 years to maturity, mixed
quality. In describing this index, the Bond Buyer notes that the bonds’ average credit quality is roughly
equivalent to Moody's Investors Service’s Aa2 rating and Standard & Poor’s Corp.’s AA. The rate shown is
as of September 24, 2015, the most recent date available on or before the measurement date.
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 allocatio n 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%
Fixed Income 2.5%
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.
59
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 10 - 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, 2014 25,075,360$ 18,778,520$ 6,296,840$
Service Cost 554,721 - 554,721
Interest 1,937,284 - 1,937,284
Change of Benefit Terms (173,336) - (173,336)
Difference between actual & expected experience (582,646) - (582,646)
Contributions - Employer - 1,249,668 (1,249,668)
Contributions - Employee (Including Buyback Contributions)- 180,728 (180,728)
Change of Assumptions 307,647 - 307,647
Net Investment Income - (201,097) 201,097
Benefit Payments (941,093) (941,093) -
Administrative Expense - (11,783) 11,783
Reporting period ending at September 30, 2015 26,177,937$ 19,054,943$ 7,122,994$
Plan Fiduciary Net Position as a Percentage of Total Pension Liability 72.79%
Covered Employee Payroll 2,008,089$
Net Pension Liability as a Percentage of Covered Employee Payroll 354.72%
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 7.60%, 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:
1% Decrease Rate Assumption 1% Increase
6.60%7.60%8.60%
10,563,428$ $ 7,122,994 4,299,660$
Current Single Discount
60
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 10 - 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, 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$
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$
FISCAL YEAR ENDED SEPTEMBER 30, 2015
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2015
STATEMENT OF CHANGES IN PLAN NET POSITION
Pension Expense and Deferred Outflows/(Inflows) of Resources
For the year ended September 30, 2016, the Village will recognize pension expense of $1,003,131. At
September 30, 2016, the Village reported deferred inflows of resources related to pensions from the following
sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Net Deferred
Outflows/(Inflows)
of Resources
Difference between expected and actual
experience 3,483$ (474,749)$ (471,266)$
Changes in assumptions 250,675 - 250,675
Net difference between projected and actual
earnings on pension plan investments 1,436,325 - 1,436,325
Employer contributions subsequent to the
measurement date 1,152,390 - 1,152,390
Total 2,842,873$ (474,749)$ 2,368,124$
61
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 10 - EMPLOYEE RETIREMENT PLANS – VILLAGE’S REPORTING (Continued)
B. Police Officers' Retirement Plan (Continued)
Pension Expense and Deferred Outflows/(Inflows) of Resources (Continued)
The Village contributions subsequent to the measurement date of $1,152,390 are reported as deferred outflows
of resources and will be recognized as a reduction of the net pension liability in the fiscal year ending September
30, 2017.
Other amounts reported as deferred inflows of resources related to pensions will be recognized in pension
expense as follows:
Fiscal year
ending
September 30,
Net Deferred
Outflows of
Resources
2017 1,470,127$
2018 317,738
2019 317,739
2020 282,894
2021 (20,374)
Thereafter -
Total 2,368,124$
NOTE 11 - 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, 2016, 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, 2016 are as follows:
2016 2015 2014
Unpaid claims, beginning $ 340,000 $ 340,000 $ 464,136
Incurred claims (including IBNR’s) - - -
Claim payments and disbursements - - (124,136)
Unpaid claims, ending $ 340,000 $ 340,000 $ 340,000
NOTE 12- 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.
62
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 12- COMMITMENTS AND CONTINGENCIES (Continued)
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.
NOTE 13 - 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. The Village provides all financial information and
required disclosures of its other post-employment benefit plan in this document; therefore, a separate audited
post-employment benefits plan report is not available.
Membership
As of October 1, 2015 (the date of the latest actuarial valuations) health care and dental plan participants
consisted of:
Active participants 100
Retired participants 7
Total participants 107
Health-Related Benefits
Eligible retirees may choose among the same Medical Plan options available for active employees of the Village.
Dependents of retirees may be covered at the retiree’s option the same as dependents of active employees.
Prescription Drug coverage is automatically extended to retirees and their dependents who continue coverage
under any one of the Medical Plan options. Covered retirees and their dependents are subject to all the same
Medical and Prescription benefits and rules for coverage as are active employees.
Retirees 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.
63
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 13 - OTHER POST EMPLOYMENT BENEFITS (Continued)
Disabled Retirees Premium Contributions
Members eligible for disability retirement are subject to premium payments the same as all regular retirees. A n
exception is made to Police Officers who had sustained catastrophic injuries in the line of duty. Premiums for
health coverage of such officers, their spouses and any dependent children will be paid by the Village as
prescribed by the Florida Statute Sections 112.19(2)(g)1 and 112.19(2)(h)1 respectively (first introduced as the
Alu-O'Hara Public Safety Act).
Funding Policy
Benefits are funded on a pay-as-you-go basis.
Annual Required Contribution (ARC)
In accordance with GASB Statement No. 45, an actuarial study was prepared calculating the postemployment
healthcare costs as of October 1, 2015. The actuarial valuation estimated the Unfunded Actuarial Accrued
liability (UAAL) of $1,767,654 and an Annual Required Contribution (ARC) of $199,950. 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 following table shows the components of the Village's annual OPEB cost for the year, the amount actually
contributed, and the changes in the net OPEB obligation:
Annual required contribution (ARC) $ 199,950
Interest on net OPEB obligation 26,081
Adjustment to annual required contribution (32,398)
Annual pension cost (APC) 193,633
Employer contributions made (77,704)
Increase in net OPEB obligation 115,929
Net OPEB obligationt, beginning of year 745,161
Net OPEB obligation, end of year $ 861,090
Annual OPEB Costs
The Village's annual OPEB cost, the percentage of annual OPEB costs contributed to the plan, and the net
OPEB obligation for 2016 and two preceding years were as follows:
Fiscal Year
Ending
September 30,
Annual OPEB
Cost
Actual
Contribution
Percentage
Contributed
Net OPEB
Obligation
2014 $ 167,477 $ 60,201 35.95% $ 636,663
2015 178,119 69,621 39.09% 745,161
2016 193,633 77,704 40.13% 861,090
64
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 13 - OTHER POST EMPLOYMENT BENEFITS (Continued)
Schedule of Funding Progress
The schedule of funding progress, presented as required supplementary information (RSI) following the notes to
the basic financial statements, 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. An analysis of funding progress
based on recent actuarial valuation follows:
Actuarial
Valuation
Date
Actuarial Value
of Assets
(a)
Actuarial
Accrued Liability
(AAL) - Entry
Age
(b)
Unfunded AAL
(UAAL)
(b - a)
Funded
Ratio
(a / b)
Covered Payroll
(c)
UAAL as a
% of
Covered
Payroll
([b - a] / c)
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%
10/1/2015 - 1,767,654 1,767,654 0% 5,607,408 31.52%
Actuarial Methods and Assumptions
Actuarial Cost Method: Entry Age
Amortization Method: Level % Closed
Remaining Amortization Period: 23 Years
Asset Valuation Method: Unfunded
Actuarial Assumptions:
Investment rate of return 3.50% (includes general price inflation at 2.50%)
Projected salary increases 5.5% - 6.5% (includes general price inflation at 2.50%)
Payroll growth assumptions 3.5%
Initial per capital cost trend rate 6.60%
2nd trend rate 6.50%
3rd trend rate 6.25%
Ultimate trend rate 4.69% (includes 0.45% estimated effect of the Federal
Excise Tax)
Initial per capital cost trend rate 6.60%
65
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 14 – RESTATEMENT
During the current year, it was determined by the Village that the September 30, 2016 beginning net
position/fund balance (as applicable) for the governmental activities, business-type activities, General Fund,
Sanitation Fund, Stormwater Fund and Fleet Fund were to be restated in order to correct the beginning net
pension liability and related deferred outflows/inflows of resources. Such corrections comprised of unrecorded
net pension liability, deferred outflows of resources, deferred inflows of resources, and pension expense at the
fund level for the Sanitation Fund, Stormwater Fund and Fleet Fund which were previously recorded in the
governmental activities at the government-wide level.
The following presents the impact in the net position/fund balance (as applicable) as of October 1, 2015:
Governmental
Activities
Business-type
Activities
Net position, beginning, as
previously reported 23,831,340$ 5,617,848$
Correction of long-term liabilities 352,372 (352,372)
Net position, beginning, as restated 24,183,712$ 5,265,476$
Government-Wide Financial
Statements
General Fund Sanitation Fund Stormwater Fund Fleet Fund
Net position/fund balance (as applicable), beginning,
as previously reported 8,588,896$ 2,756,142$ 2,861,706$ 3,170,093$
Correction of employer contribution 97,832 (79,699) (8,520) (9,613)
Correction of deferred outflows of resources - 101,185 10,817 12,204
Correction of deferred inflows of resources - (1,291) (138) (156)
Correction of long-term liabilities - (338,538) (36,188) (40,831)
Net position/fund balance (as applicable), beginning,
as restated 8,686,728$ 2,437,799$ 2,827,677$ 3,131,697$
Fund Financial Statements
The following presents the impact in long-term debt as a result of the prior period adjustment:
Governmental
Activities
Business-type
Activities
Long-term liabilities, beginning, as previously reported 16,374,828$ 224,979$
Correction of long-term liabilities (374,726) 374,726
Long-term liabilities, beginning, as restated 16,000,102$ 599,705$
Government-Wide Financial
Statements
Sanitation Fund Stormwater Fund Fleet Fund
Long-term liabilities, beginning, as previously reported 208,623$ 16,356$ 17,280$
Correction of long-term liabilities 338,538 36,188 40,831
Long-term liabilities, beginning, as restated 547,161$ 52,544$ 58,111$
Fund Financial Statements
66
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
NOTE 14 – RESTATEMENT (Continued)
The following presents the effect in the change in net position/fund balance (as applicable) of the preceding
period:
Governmental
Activities
Business-type
Activities
Allocation of employer contribution (2015)88,219$ (88,219)$
Change in deferred outflows of resources (2015)(112,002) 112,002
Change in deferred inflows of resources (2015)1,429 (1,429)
Change in net pension liability (2015)42,460 (42,460)
Net effect due to correction of an error 20,106 (20,106)
Change in net position, preceding period 567,255 745,144
Corrected change in net position, preceding period 607,467$ 704,932$
Government-Wide Financial
Statements
General Fund Sanitation Fund Stormwater Fund Fleet Fund
Allocation of employer contribution (2015)97,832$ (79,699)$ (8,520)$ (9,613)$
Change in deferred outflows of resources (2015)- 101,185 10,817 12,204
Change in deferred inflows of resources (2015)- (1,291) (138) (156)
Change in net pension liability (2015)- (35,164) (7,296) 2,508
Net effect due to correction of an error 97,832 (14,969) (5,137) 4,943
Change in net position/fund balance (as applicable),
preceding period 622,459 70,021 675,123 337,674
Corrected change in net position/fund balance
(as applicable), preceding period 720,291$ 55,052$ 669,986$ 342,617$
Fund Financial Statements
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 6,788,095$ 6,788,095$ 6,864,998$ 76,903$
Licenses and permits:
Business licenses - Village 85,000 85,000 82,581 (2,419)
Business licenses - County 25,000 25,000 27,909 2,909
Building permits 783,260 783,260 865,323 82,063
Certificate of reoccupancy 13,520 13,520 10,320 (3,200)
Other licenses and permits 163,227 163,227 271,095 107,868
Total licenses and permits 1,070,007 1,070,007 1,257,228 187,221
Intergovernmental revenues:
State shared revenues:
State revenue sharing 263,000 263,000 265,370 2,370
Local government half cent sales tax 850,500 850,500 826,174 (24,326)
Other 820 820 821 1
Total intergovernmental revenues 1,114,320 1,114,320 1,092,365 (21,955)
Charges for services:
Physical environment 60,150 60,150 35,734 (24,416)
Police extra duty 451,200 451,200 272,950 (178,250)
Landscape maintenance 5,000 5,000 35,027 30,027
Culture/recreation 1,457,024 1,457,024 1,388,906 (68,118)
Total charges for services 1,973,374 1,973,374 1,732,617 (240,757)
Fines and forfeitures:
Court fines and costs 80,000 80,000 35,422 (44,578)
School crossing guards 17,000 17,000 18,525 1,525
Other 318,413 318,413 298,079 (20,334)
Total fines and forfeitures 415,413 415,413 352,026 (63,387)
Miscellaneous:
Rents 355,000 355,000 264,924 (90,076)
Other 72,544 72,544 92,570 20,026
Total miscellaneous 427,544 427,544 357,494 (70,050)
Interest 4,000 4,000 14,492 10,492
Total revenues 11,792,753$ 11,792,753$ 11,671,220$ (121,533)$
(Continued)
Budgeted Amounts
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
See notes to budgetary comparison schedule
67
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 15,961$ 15,961$ 12,510$ 3,451$
Village attorney 192,970 342,970 337,873 5,097
Village manager 230,175 230,175 227,192 2,983
Village clerk 152,901 152,901 140,087 12,814
Code enforcement 188,177 188,177 182,549 5,628
Building department 587,733 587,733 560,783 26,950
Planning and zoning 218,398 314,048 211,534 102,514
Finance 601,955 601,955 573,120 28,835
Other general government 887,643 940,773 756,459 184,314
Total general government 3,075,913 3,374,693 3,002,107 372,586
Public safety:
Law enforcement 6,531,895 6,552,137 6,202,166 349,971
School crossing guard 44,559 44,559 43,362 1,197
Total public safety 6,576,454 6,596,696 6,245,528 351,168
Public works:
Parks 329,368 329,368 308,085 21,283
Street maintenance 653,226 653,226 640,804 12,422
Public works administration 434,267 434,267 394,276 39,991
Recreation maintenance 160,986 160,986 155,831 5,155
Total public services 1,577,847 1,577,847 1,498,996 78,851
Culture and recreation:
Recreation 2,404,817 2,407,010 2,266,025 140,985
Library 436,472 436,472 411,792 24,680
Total culture and recreation 2,841,289 2,843,482 2,677,817 165,665
Total expenditures 14,071,503 14,392,718 13,424,448 968,270
(Deficiency) of revenues (under) expenditures (2,278,750) (2,599,965) (1,753,228) 846,737
Other financing sources (uses):
Transfers in 2,825,350 2,825,350 2,675,350 150,000
Transfers out (546,600) (1,646,600) (1,643,262) (3,338)
(Deficiency) of revenues (under) other
financing sources (uses)- (1,421,215) (721,140) 700,075
Fund balance appropriated - 1,421,215 - 1,421,215$
Net change in fund balance - - (721,140)
Fund balance, beginning, as previously reported - - 8,588,896
Prior period adjustment (See Note 14)97,832
Fund balance, beginning, as restated 8,686,728
Fund balance, ending -$ -$ 7,965,588$
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
Budgeted Amounts
See notes to budgetary comparison schedule
68
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Public service taxes 2,182,500$ 2,182,500$ 2,141,094$ (41,406)$
Total revenues 2,182,500 2,182,500 2,141,094 (41,406)
Other financing (uses):
Transfers out (2,425,350) (2,425,350) (2,275,350) 150,000
(Deficiency) of revenues (under) other
financing (uses)(242,850) (242,850) (134,256) 108,594
Fund balance appropriated 242,850 242,850 - 242,850$
Net change in fund balance - - (134,256)
Fund balances - beginning - - 988,329
Fund balances - ending -$ -$ 854,073$
Budgeted Amounts
MIAMI SHORES VILLAGE, FLORIDA
BUDGETARY COMPARISON SCHEDULES
SPECIAL REVENUE FUND - EXCISE TAX
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
See notes to budgetary comparison schedules
69
70
MIAMI SHORES VILLAGE, FLORIDA
NOTE TO BUDGETARY COMPARISON SCHEDULES
FISCAL YEAR ENDED SEPTEMBER 30, 2016
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, 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 $321,215, during the fiscal year ended September 30, 2016 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, 2016, expenditures exceeded appropriations in the Capital Improvement Fund by
$4,119. These over-expenditures were funded by available fund balance.
Reporting fiscal year ending September 30,2016 2015
Measurement fiscal year ending September 30,2015 2014
Total Pension Liability
Service Cost 325,868$ 308,880$
Interest 1,018,010 960,279
Difference between actual & expected experience 106,918 (7,788)
Benefit Payments (655,520) (373,038)
Refunds - (28,655)
Net Change in Total Pension Liability 795,276 859,678
Total Pension Liability - Beginning 13,222,806 12,363,128
Total Pension Liability - Ending (a)14,018,082$ 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)
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)2,644,016$ 1,577,813$
Plan Fiduciary Net Position as a Percentage of Total Pension Liability 81.14%88.07%
Covered Employee Payroll 1 3,146,550$ 2,994,667$
Net Pension Liability as a Percentage of Covered Employee Payroll 84.03%52.69%
1
Thisschedule is presented to illustrate the requirement to showinformation for 10 years.However,untilafull10-year
trend is compiled, pension plans should present information for those years for which information is available.
CoveredEmployeePayrollwascalculated by dividing thetotal membercontributions forthe fiscalyear 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)
71
Fiscal year ending September 30,2016 2015 2014
Total Pension Liability
Service Cost 315,449$ 325,868$ 308,880$
Interest 1,070,820 1,018,010 960,279
Difference between actual & expected experience 115,151 - (7,788)
Assumption Changes 317,996 - -
Benefit Payments (639,713) (655,520) (373,038)
Refunds - - (28,655)
Net Change in Total Pension Liability 1,179,703 688,358 859,678
Total Pension Liability - Beginning 13,911,164 13,222,806 12,363,128
Total Pension Liability - Ending (a)15,090,867$ 13,911,164$ 13,222,806$
Plan Fiduciary Net Position
Contributions - Employer 371,453$ 371,453$ 261,966$
Contributions - Member 188,786 188,793 179,680
Net Investment Income 1,074,730 (160,205) 715,959
Benefit Payments (639,713) (655,520) (373,038)
Refunds - - (28,655)
Administrative Expense (69,962) (15,448) (29,411)
Net Change in Plan Fiduciary Net Position 925,294 (270,927) 726,501
Plan Fiduciary Net Position - Beginning 11,374,066 11,644,993 10,918,492
Plan Fiduciary Net Position - Ending (b) 12,299,360$ 11,374,066$ 11,644,993$
Net Pension Liability - Ending (a) - (b)2,791,507$ 2,537,098$ 1,577,813$
Plan Fiduciary Net Position as a Percentage of Total Pension Liability 81.50%81.76%88.07%
Covered Employee Payroll 1 3,146,433$ 3,146,550$ 2,994,667$
Net Pension Liability as a Percentage of Covered Employee Payroll 88.72%80.63%52.69%
1
Thisschedule is presented to illustratetherequirement to showinformationfor 10 years.However,untilafull10-yeartrend is
compiled, pension plans should present information for those years for which 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)
CoveredEmployeePayroll was calculated by dividingthetotalmembercontributionsforthefiscalyear by themembercontribution
rate of 6%.
72
Fiscal
Year Actuarially Contribution Actual Contribution
Ending Determined Actual Deficiency Covered as a % of
September 30,Contribution Contribution (Excess) Payroll1 Covered Payroll
2016 371,453$ 371,453$ -$ 3,146,433$ 11.81%
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
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 5.50%
Investment Rate of Return 7.70%
Retirement Age
Mortality
Other Information:
Notes
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%.
(as required by GASB Statement No. 68)
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.
See Discussion of Valuation Results in the October 1, 2013 Actuarial
ValuationReportdatedOctober 29,2014;effectivefortheOctober 1,
2015 valuation,theinvestmentreturnassumptionwasloweredfrom
7.7% to 7.5%.
73
Fiscal
Year Actuarially Contribution Actual Contribution
Ending Determined Actual Deficiency Covered as a % of
September 30,Contribution Contribution (Excess) Payroll1 Covered Payroll
2016 371,453$ 371,453$ -$ 3,146,433$ 11.81%
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
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 5.50%
Investment Rate of Return 7.70%
Retirement Age
Mortality
Thisschedule is presented to illustratetherequirement to showinformationfor 10 years.However,
untilafull10-yeartrend is compiled,pensionplansshouldpresentinformationforthoseyearsforwhich
information is available.
MIAMI SHORES VILLAGE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS
GENERAL EMPLOYEES' RETIREMENT SYSTEM
(as required by GASB Statement No. 67)
CoveredEmployeePayrollwascalculated by dividingthetotalmembercontributionsforthefiscalyear
by the member contribution rate of 6%.
Notes to the Schedule of Contributions
Actuariallydeterminedcontributionratesarecalculated asof October
1,which is twoyearsprior to the endof thefiscalyear in which
contributions are reported.
Actuarial Cost Method
Experience-basedtable of ratesthatarespecific to thetype of
eligibility condition
RP-2000CombinedHealthyParticipantMortalityTableformales and
femaleswithmortalityimprovementprojected to allfutureyearsafter
2000 using Scale BB.
74
Fiscal year ending
September 30,
Annual Money-Weighted
Rate of Return, Net of
Investment Expense
2016 8.73%
2015 -1.20%
2014 6.23%
2013 10.44%
2012 12.95%
2011 9.06%
2010 8.51%
2009 7.10%
2008 3.49%
2007 -0.39%
MIAMI SHORES VILLAGE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF INVESTMENT RETURNS
GENERAL EMPLOYEES' RETIREMENT SYSTEM
75
Reporting fiscal year ending September 30,2016 2015
Measurement 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)
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 1,207,161$
Contributions - Non-Employer Contributing Entity - 2 173,561
Contributions - Member 180,728 205,660
Net Investment Income (201,097) 1,168,552
Benefit Payments (941,093) (1,180,510)
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 3 2,008,089$ 2,285,111$
Net Pension Liability as a Percentage of Covered Employee Payroll 354.72%275.56%
1
2
2
Thisschedule is presented to illustratethe requirement to showinformationfor 10 years.However,untilafull10-year
trend is compiled, pension plans should present information for those years for 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 dividingthetotalmembercontributionsforthefiscalyear by themember
contribution rate of 9%.
Includes receivable Employer contribution in the amount of $32,922 for fiscal year ending September 30, 2015.
(as required by GASB Statement No. 68)
Statecontributionsforfiscalyear ending September 30,2015 were not receiveduntilafterthe endof thefiscalyear
(therefore not permitted to be used until next fiscal year).
76
Fiscal year ending September 30,2016 2015 2014
Total Pension Liability
Service Cost 536,463$ 554,721$ 672,275$
Interest 1,991,408 1,937,284 1,796,408
Benefit Changes - (173,336) -
Difference between actual & expected experience (51,582) (582,646) 5,315
Assumption Changes 326,835 307,647 -
Benefit Payments (1,023,327) (941,093) (1,180,510)
Other 65,088 - 113,175
Net Change in Total Pension Liability 1,844,885 1,102,577 1,406,663
Total Pension Liability - Beginning 26,177,937 25,075,360 23,668,697
Total Pension Liability - Ending (a)28,022,822$ 26,177,937$ 25,075,360$
Plan Fiduciary Net Position
Contributions - Employer 1,122,197$ 1,249,668$ 1 1,207,161$
Contributions - Non-Employer Contributing Entity 95,281 - 2 173,561
Contributions - Member 191,425 180,728 205,660
Net Investment Income 1,818,553 (201,097) 1,168,552
Benefit Payments (1,023,327) (941,093) (1,180,510)
Administrative Expense (78,167) (11,783) (39,392)
Net Change in Plan Fiduciary Net Position 2,125,962 276,423 1,535,032
Plan Fiduciary Net Position - Beginning 19,054,943 18,778,520 17,243,488
Plan Fiduciary Net Position - Ending (b) 21,180,905$ 19,054,943$ 18,778,520$
Net Pension Liability - Ending (a) - (b)6,841,917$ 7,122,994$ 6,296,840$
Plan Fiduciary Net Position as a Percentage of Total Pension Liability 75.58%72.79%74.89%
Covered Employee Payroll 3 2,126,944$ 2,008,089$ 2,285,111$
Net Pension Liability as a Percentage of Covered Employee Payroll 321.68%354.72%275.56%
1
2
3 CoveredEmployeePayroll was calculated by dividingthetotalmembercontributionsforthefiscalyear by themembercontributionrate
of 9%.
This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled,
pension plans should present information for those years for which 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
POLICE OFFICERS' RETIREMENT SYSTEM (PLAN'S REPORTING)
Statecontributionsforfiscalyear ending September 30,2015 were not receiveduntilafterthe endof thefiscalyear(therefore not
permitted to be used until next fiscal year).
Includes receivable Employer contribution in the amount of $32,922 for fiscal year ending September 30, 2015.
77
Fiscal
Year Actuarially Contribution Actual Contribution
Ending Determined Actual Deficiency Covered as a % of
September 30,Contribution Contribution (Excess) Payroll3 Covered Payroll
2016 1,152,390$ 1,152,390$ -$ 2,126,944$ 54.18%
2015 1,249,668 1 1,249,668 2 - 2,008,089 62.23%
2014 1,237,354 1,267,547 (30,193) 2,285,111 55.47%
1
2
3
Valuation Date
Notes
Methods and Assumptions Used to Determine Contribution Rates:
Amortization Method
Remaining Amortization Period
Asset Valuation Method
Inflation
Salary Increases
Investment Rate of Return
Retirement Age
Mortality
Other Information:
Notes
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).
IncludesreceivableEmployercontribution in theamount of $32,922forfiscalyearendingSeptember 30,
2015.
(as required by GASB Statement No. 68)
Thisschedule is presented to illustratetherequirement to showinformationfor 10 years.However,untila
full10-yeartrend is compiled,pensionplansshouldpresentinformationforthoseyearsforwhich
information is available.
Actuarial Cost Method
Notes to the Schedule of Contributions
10/1/2014
Actuarially determined contribution rates are calculated as of October 1,
which is two years prior to the end of the fiscal year in which contributions
are reported.
Entry Age Normal
20 years
3.0%
6.50%
7.60%
All actives are assumed to retire when first eligible for Normal Retirement.
The rate of retirement is 1% for each year of eligibility for Early Retirement.
RP-2000 Combined Healthy Participant Mortality Table for males and
females with mortality improvement projected to all future years after 2000
using Scale BB.
See Discussion of Valuation Results in the October 1, 2014 Actuarial
Valuation Report dated October 6, 2015; effective for the October 1, 2015
valuation, the investment return assumption was lowered from 7.6% to
7.5%.
Level Dollar, Closed
5-year smoothed market
78
Fiscal
Year Actuarially Contribution Actual Contribution
Ending Determined Actual Deficiency Covered as a % of
September 30,Contribution Contribution (Excess) Payroll3 Covered Payroll
2016 1,152,390$ 1,152,390$ -$ 2,126,944$ 54.18%
2015 1,249,668 1 1,249,668 2 - 2,008,089 62.23%
2014 1,237,354 1,267,547 (30,193) 2,285,111 55.47%
1
2
3
Valuation Date
Notes
Methods and Assumptions Used to Determine Contribution Rates:
Amortization Method
Remaining Amortization Period
Asset Valuation Method
Inflation
Salary Increases
Investment Rate of Return
Retirement Age
Mortality
All actives are assumed to retire when first eligible for Normal
Retirement. The rate of retirement is 1% for each year of eligibility for
Early Retirement.
RP-2000 Combined Healthy Participant Mortality Table for males and
females with mortality improvement projected to all future years after 2000
using Scale BB.
Thisschedule is presented to illustrate the requirement to showinformationfor 10 years.However,until a
full10-year trend is compiled,pensionplans should present informationfor those yearsforwhich
information is available.
(as required by GASB Statement No. 67)
Level Dollar, Closed
5-year smoothed market
20 years
3.0%
6.50%
7.60%
CoveredEmployeePayrollwascalculated by dividing thetotal membercontributionsfor the fiscalyear by
the member contribution rate of 9%.
Notes to the Schedule of Contributions
10/1/2014
Actuarially determined contribution rates are calculated as of October 1,
which is two years prior to the end of the fiscal year in which contributions
are reported.
Actuarial Cost Method Entry Age Normal
State contributionsforfiscalyear ending September 30,2015 were not received until after the endof the
fiscal year (therefore not permitted to be used until next fiscal year).
MIAMI SHORES VILLAGE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS
POLICE OFFICERS' RETIREMENT SYSTEM
Includes receivableEmployercontribution in the amount of$32,922 forfiscalyear ending September 30,
2015.
79
Fiscal year ending
September 30,
Annual Money-Weighted
Rate of Return, Net of
Investment Expense
2016 8.97%
2015 -0.90%
2014 6.30%
2013 9.48%
2012 11.52%
2011 8.38%
2010 7.99%
2009 6.89%
2008 3.74%
2007 0.22%
MIAMI SHORES VILLAGE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF INVESTMENT RETURNS
POLICE OFFICERS' RETIREMENT SYSTEM
80
Actuarial
Valuation
Date
Actuarial
Value of
Assets
Actuarial
Accrued
Liability
(AAL)
- Entry Age
Unfunded
AAL
(UAAL)
Funded
Ratio
Covered
Payroll
UAAL as a
% of
Covered
Payroll
10/1/2008 -$ 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%
10/1/2015 - 1,767,654 1,767,654 0%5,607,408 31.52%
SCHEDULE OF FUNDING PROGRESS
OTHER POST-EMPLOYMENT BENEFITS
MIAMI SHORES VILLAGE, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
81
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.
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 Law Brockway
Transportation Option Enforcement Memorial
Surtax Gas Tax Grants Training Expansion Total
ASSETS
Cash and cash equivalents 313,370$ 187,143$ 1,678$ 20,891$ 272,620$ 795,702$
Accounts receivable - net 138,485 29,342 - 421 - 168,248
Total assets 451,855 216,485 1,678 21,312 272,620 963,950
LIABILITIES
Accounts payable and accrued liabilities 6,091 1,890 - - - 7,981
Unearned revenues - - 1,678 - - 1,678
Total liabilities 6,091 1,890 1,678 - - 9,659
FUND BALANCES
Restricted 445,764 214,595 - 21,312 272,620 954,291
Committed - - - - - -
Total fund balances 445,764 214,595 - 21,312 272,620 954,291
Total liabilities and fund balances 451,855$ 216,485$ 1,678$ 21,312$ 272,620$ 963,950$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2016
Special Revenue Funds
82 (Continued)
Debt
Service
Total
Capital Charter Nonmajor
Improvement High School Governmental
GO Bonds Fund Construction Total Funds
ASSETS
Cash and cash equivalents 1,123,803$ 530,729$ 58,146$ 588,875$ 2,508,380$
Accounts receivable - net 4,115 - - - 172,363
Total assets 1,127,918 530,729 58,146 588,875 2,680,743
LIABILITIES
Accounts payable and accrued liabilities - 7,245 - 7,245 15,226
Unearned revenues - - - - 1,678
Total liabilities - 7,245 - 7,245 16,904
FUND BALANCES
Restricted 1,127,918 - - - 2,082,209
Committed - 523,484 58,146 581,630 581,630
Total fund balances 1,127,918 523,484 58,146 581,630 2,663,839
Total liabilities and fund balances 1,127,918$ 530,729$ 58,146$ 588,875$ 2,680,743$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2016
Capital Projects
83
Local Law Brockway
Transportation Option Enforcement Memorial
Surtax Gas Tax Grants Training Expansion Total
Revenues:
Intergovernmental revenues 418,876$ 364,614$ 14,822$ -$ -$ 798,312$
Fines and forfeitures - - - 2,590 - 2,590
Miscellaneous - - - - 1,127 1,127
Interest income 822 977 - 9 - 1,808
Total revenues 419,698 365,591 14,822 2,599 1,127 803,837
Expenditures:
General government - - 14,822 - - 14,822
Public works 253,577 238,027 - - - 491,604
Capital outlay 206,373 83,835 13,456 - 807 304,471
Total expenditures 459,950 321,862 28,278 - 807 810,897
Excess (deficiency) of revenues
over (under) expenditures before
other financing sources (40,252) 43,729 (13,456) 2,599 320 (7,060)
Other financing sources (uses):
Transfers out - (93,700) - - - (93,700)
Total other financing sources (uses)- (93,700) - - - (93,700)
Net change in fund balance (40,252) (49,971) (13,456) 2,599 320 (100,760)
Fund balances, beginning 486,016 264,566 13,456 18,713 272,300 1,055,051
Fund balances, ending 445,764$ 214,595$ -$ 21,312$ 272,620$ 954,291$
FISCAL YEAR ENDED SEPTEMBER 30, 2016
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
84 (Continued)
Debt
Service
Total
Capital Charter Nonmajor
Improvement High School Governmental
GO Bonds Fund Construction Total Funds
Revenues:
Property taxes 461,127 -$ -$ -$ 461,127$
Intergovernmental revenues - - - - 798,312
Fines and forfeitures - - - - 2,590
Miscellaneous - - - - 1,127
Interest income 2,366 311 - 311 4,485
Total revenues 463,493 311 - 311 1,267,641
Expenditures:
General government 5,000 - - - 19,822
Public works - - - - 491,604
Capital outlay - 1,414,366 1,211 1,415,577 1,720,048
Debt service:
Principal 657,889 - - - 657,889
Interest 168,811 - - - 168,811
Total expenditures 831,700 1,414,366 1,211 1,415,577 3,058,174
Excess (deficiency) of revenues
over (under) expenditures before
other financing sources (uses)(368,207) (1,414,055) (1,211) (1,415,266) (1,790,533)
Other financing sources (uses):
Transfers in 380,500 1,418,462 - 1,418,462 1,798,962
Transfers out - - - - (93,700)
Total other financing sources (uses)380,500 1,418,462 - 1,418,462 1,705,262
Net change in fund balance 12,293 4,407 (1,211) 3,196 (85,271)
Fund balances, beginning 1,115,625 519,077 59,357 578,434 2,749,110
Fund balances, ending 1,127,918$ 523,484$ 58,146$ 581,630$ 2,663,839$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2016
Capital Projects
85
Variance with Variance with
Final Budget Final Budget
Actual Positive Actual Positive
Original Final Amounts (Negative)Original Final Amounts (Negative)
Revenues:
Intergovernmental revenues 369,000$ 369,000$ 418,876$ 49,876$ 367,000$ 367,000$ 364,614$ (2,386)$
Interest income 1,000 1,000 822 (178) 1,300 1,300 977 (323)
Total revenues 370,000 370,000 419,698 49,698 368,300 368,300 365,591 (2,709)
Expenditures:
Public works 229,625 316,880 253,577 63,303 273,050 280,250 238,027 42,223
Capital outlay 175,000 238,016 206,373 31,643 75,000 101,738 83,835 17,903
Total expenditures 404,625 554,896 459,950 94,946 348,050 381,988 321,862 60,126
Excess (deficiency) of revenues
over (under) expenditures (34,625) (184,896) (40,252) 144,644 20,250 (13,688) 43,729 57,417
Other financing (uses):
Transfers (out)- - - - (93,700) (93,700) (93,700) -
(Deficiency) of revenues (under) other
financing (uses)(34,625) (184,896) (40,252) 144,644 (73,450) (107,388) (49,971) 57,417
Fund balance appropriated 34,625 184,896 - 184,896$ 73,450 107,388 - 107,388$
Net change in fund balance - - (40,252) - - (49,971)
Fund balances, beginning - - 486,016 - - 264,566
Fund balances, ending -$ -$ 445,764$ -$ -$ 214,595$
Budgeted Amounts Budgeted Amounts
Special Revenue Funds
MIAMI SHORES VILLAGE, FLORIDA
SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
Transporation Surtax Local Option Gas Tax
86
Variance with Variance with
Final Budget Final Budget
Actual Positive Actual Positive
Original Final Amounts (Negative)Original Final Amounts (Negative)
Revenues:
Property taxes 453,975$ 453,975$ 461,127$ 7,152$ -$ -$ -$ -$
Interest income 2,000 2,000 2,366 366 - - 311 311
Total revenues 455,975 455,975 463,493 7,518 - - 311 311
Expenditures:
General government 8,000 8,000 5,000 3,000 - - - -
Capital outlay - - - - 259,800 1,410,247 1,414,366 (4,119)
Debt service:
Principal 658,400 658,400 657,889 511 - - - -
Interest 170,075 170,075 168,811 1,264 - - - -
Total expenditures 836,475 836,475 831,700 4,775 259,800 1,410,247 1,414,366 (4,119)
(Deficiency) of revenues (under) expenditures (380,500) (380,500) (368,207) 12,293 (259,800) (1,410,247) (1,414,055) (3,808)
Other financing sources:
Transfers in 380,500 380,500 380,500 - 259,800 1,359,800 1,418,462 58,662 Excess (deficiency) of revenues over
(under) expenditures and other financing
sources - - 12,293 12,293 - (50,447) 4,407 54,854
Fund balance appropriated - - - -$ - 50,447 - 50,447$
Net change in fund balance - - 12,293 - - 4,407
Fund balances, beginning - - 1,115,625 - - 519,077
Fund balances, ending -$ -$ 1,127,918$ -$ -$ 523,484$
Budgeted Amounts Budgeted Amounts
MIAMI SHORES VILLAGE, FLORIDA
SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES-BUDGET AND ACTUAL NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
Debt Service Fund Capital Improvement Fund
87
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 715,062$ 1,370,184$ 2,085,246$
Accounts receivable - net 201,802 - 201,802
Inventories - 46,919 46,919
Prepaid items 166,870 - 166,870
Total current assets 1,083,734 1,417,103 2,500,837
Capital assets:
Capital assets not being depreciated - 7,127 7,127
Capital assets being depreciated, net - 2,029,482 2,029,482
Total noncurrent assets - 2,036,609 2,036,609
Total assets 1,083,734 3,453,712 4,537,446
DEFERRED OUTLOWS OF RESOURCES
Pension - 56,528 56,528
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 1,592 24,717 26,309
Compensated absences - 4,270 4,270
Total current liabilities 1,592 28,987 30,579
Noncurrent liabilities:
Compensated absences - 12,809 12,809
Net pension liability - 109,088 109,088
Claims payable 340,000 - 340,000
Total noncurrent liabilities 340,000 121,897 461,897
Total liabilities 341,592 150,884 492,476
DEFERRED INFLOWS OF RESOURCES
Pension - 176 176
NET POSITION
Net investment in capital assets - 2,036,609 2,036,609
Unrestricted 742,142 1,322,571 2,064,713
Total net position 742,142$ 3,359,180$ 4,101,322$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2016
88
Risk Fleet
Management Maintenance
Fund Fund Total
Revenues:
Charges for services 773,064$ 1,129,100$ 1,902,164$
Operating expenses:
Administrative and general 9,093 579,835 588,928
Personnel expenses - 230,761 230,761
Depreciation - 194,916 194,916
Insurance premiums and claims 654,367 - 654,367
Total operating expenses 663,460 1,005,512 1,668,972
Operating income 109,604 123,588 233,192
Non-operating revenues:
Interest income 1,209 852 2,061
Total non-operating revenues 1,209 852 2,061
Income before transfers and contributions 110,813 124,440 235,253
Transfers out (62,000) - (62,000)
Contributions - 103,043 103,043
Change in net position 48,813 227,483 276,296
Net position, beginning, as previously reported 693,329 3,170,093 3,863,422
Prior period adjustment (See Note 14)- (38,396) (38,396)
Net position, beginning, as restated 693,329 3,131,697 3,825,026
Net position, ending 742,142$ 3,359,180$ 4,101,322$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2016
89
Risk Fleet
Management Maintenance
Fund Fund Total
Cash flows from operating activities:
Cash received from customers, governments and other funds 713,968$ 1,129,100$ 1,843,068$
Cash paid to suppliers (723,916) (565,389) (1,289,305)
Cash paid to employees - (207,009) (207,009)
Net cash provided by (used in) operating activities (9,948) 356,702 346,754
Cash flows from non-capital financing activities:
Transfers out (62,000) - (62,000)
Net cash (used in) non-capital financing activities (62,000) - (62,000)
Cash flows from capital related financing activities:
Acquisition and construction of capital assets - (271,943) (271,943)
Capital contributions - 103,043 103,043
Net cash (used in) capital and related financing activities - (168,900) (168,900)
Cash flows from investing activities:
Interest and other income 1,209 852 2,061
Net cash provided by investing activities 1,209 852 2,061
Net increase (decrease) in cash and cash equivalents (70,739) 188,654 117,915
Cash and cash equivalents, October 1 785,801 1,181,530 1,967,331
Cash and cash equivalents, September 30 715,062$ 1,370,184$ 2,085,246$
Reconciliation of operating income to net cash provided by (used in)
operating activities:
Operating income 109,604$ 123,588$ 233,192$
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation - 194,916 194,916
Change in assets and liabilities:
(Increase) decrease in:
Accounts receivable (59,096) - (59,096)
Inventories - (910) (910)
Prepaids (14,269) - (14,269)
Deferred outflows of resources for pension - (44,324) (44,324)
Increase (decrease) in:
Accounts payable and accrued liabilities (46,187) 15,356 (30,831)
Compensated absences - (201) (201)
Net Pension Liability - 68,257 68,257
Deferred inflows of resources for pension - 20 20
Total adjustments (119,552) 233,114 113,562
Net cash provided by (used in) operating activities (9,948)$ 356,702$ 346,754$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2016
90
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 307,345$ 618,562$ 925,907$
Receivables:
Accrued interest and dividends 19,404 37,195 56,599
Total receivables 19,404 37,195 56,599
Investments, at fair value
U.S. Government securities 1,239,129 2,484,760 3,723,889
Municipal bonds 32,028 56,049 88,077
Corporate/Foreign bonds 1,369,122 2,710,970 4,080,092
Mutual funds - equity 6,369,470 9,933,746 16,303,216
Common stocks 1,838,943 3,157,586 4,996,529
Mortgage Backed Securities 1,208,172 2,212,204 3,420,376
ETF 4,014 7,499 11,513
Total investments 12,060,878 20,562,814 32,623,692
Total assets 12,387,627 21,218,571 33,606,198
LIABILITIES
Accounts payable and accrued expenses 19,357 37,666 57,023
DROP payable 68,910 - 68,910
Total liabilities 88,267 37,666 125,933
NET POSITION
Net position restricted for pensions 12,299,360$ 21,180,905$ 33,480,265$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF FIDUCIARY NET POSITION
PENSION TRUST FUNDS
SEPTEMBER 30, 2016
91
General
Employee's Police
Pension Pension
Trust Trust Total
ADDITIONS
Contributions:
Employer 371,453$ 1,122,197$ 1,493,650$
Employees 188,786 191,425 380,211
State of Florida - 95,281 95,281
Total contributions 560,239 1,408,903 1,969,142
Investment income:
Unrealized gains 537,345 100,287 637,632
Realized gains 41,581 932,579 974,160
Interest and dividend income 563,663 889,574 1,453,237
Total investment 1,142,589 1,922,440 3,065,029
Less investment expenses (67,859) (103,887) (171,746)
Net investment income 1,074,730 1,818,553 2,893,283
Total additions 1,634,969 3,227,456 4,862,425
DEDUCTIONS
Benefits paid 639,713 1,023,327 1,663,040
Administrative expenses 69,962 78,167 148,129
Total deductions 709,675 1,101,494 1,811,169
Net increase 925,294 2,125,962 3,051,256
Net position restricted for pensions
Beginning of year 11,374,066 19,054,943 30,429,009
End of year 12,299,360$ 21,180,905$ 33,480,265$
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PENSION TRUST FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
92
Balance Balance
September 30, September 30,
2015 Additions Deductions 2016
ASSETS
Cash and cash equivalents 177,483$ 2,256$ -$ 179,739$
LIABILITIES
Other liabilities 177,483$ 2,256$ -$ 179,739$
MIAMI SHORES VILLAGE, FLORIDA
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016
POLICE INSURANCE TRUST AGENCY FUND
93
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 94-98
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 99-103
These schedules contain information to help the reader assess the Village’s most significant local
revenue source, the property tax.
Debt Capacity 104-106
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 107
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 108-109
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.
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Governmental activities:
Net investment in capital assets 15,398,737$ 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$
Restricted 5,710,324 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
Unrestricted 3,452,368 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
Total governmental activities net position 24,561,429 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
Business-type activities:
Net investment in capital assets 3,123,374 2,785,010 2,195,243 2,252,711 1,921,615 1,924,061 2,043,795 558,671 624,398 770,301
Restricted 3,691,488 - - - - - - - - -
Unrestricted 1,856,583 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
Total business-type activities net position 8,671,445 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
Primary government:
Net investment in capital assets 18,522,111 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
Restricted 9,401,812 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
Unrestricted 5,308,951 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
Total primary government net position 33,232,874$ 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$
Fiscal Year
MIAMI SHORES VILLAGE, FLORIDA
NET POSITION BY COMPONENT
FOR THE LAST TEN FISCAL YEARS
(accrual basis of accounting)
94
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Expenses:
Governmental activities:
General government 3,377,218$ 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$
Public safety 6,460,583 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
Public works 2,502,799 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
Culture and recreation 3,145,255 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
Interest on debt 168,811 272,374 283,840 432,997 425,355 443,542 465,672 486,658 500,045 504,411
Total governmental activities expenses 15,654,666 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
Business-type activities:
Sanitation 2,528,666 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
Stormwater 237,712 193,174 165,537 180,702 175,761 190,992 206,300 160,808 133,913 150,783
Water & Sewer 62,204 - - - - - - - - -
Total business-type activities expenses 2,828,582 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
Total primary government expenses 18,483,248 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
Program revenues:
Governmental activities:
Charges for services:
General government 1,366,832 1,005,762 1,063,095 841,572 1,069,135 1,177,047 747,353 914,062 128,389 119,903
Public safety 790,598 1,027,550 1,087,055 1,553,168 2,326,376 777,655 733,926 746,055 424,353 472,470
Public works 194,349 200,977 117,815 843,218 727,160 814,600 750,145 1,082,667 644,197 611,097
Culture and recreation 1,388,906 1,568,844 1,436,999 1,375,506 1,293,788 1,117,160 1,079,727 965,541 854,747 837,492
Operating grants and contributions 798,312 816,380 784,430 87,368 170,234 217,303 95,692 - - -
Capital grants and contributions - 35,564 474,079 35,564 47,447 65,921 171,549 - - -
Total governmental activities program revenues 4,538,997 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
Business-type activities:
Charges for services:
Sanitation 2,633,013 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
Stormwater 245,269 244,805 244,107 248,132 252,420 248,668 247,349 228,393 225,719 195,582
Water & Sewer 7,876 - - - - - - - - -
Capital grants and contributions 3,691,488 672,381 - - - - - - - -
Total business-type activities program revenues 6,577,646 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
Total primary government program revenue 11,116,643$ 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$
(accrual basis of accounting)
MIAMI SHORES VILLAGE, FLORIDA
CHANGES IN NET POSITION
FOR THE LAST TEN FISCAL YEARS
(Continued)
Fiscal Year
95
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Net (expenses) revenue:
Governmental activities (11,115,669)$ (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)$
Business-type activities 3,749,064 1,139,423 425,455 615,550 633,849 465,432 544,263 590,839 561,225 224,105
Total primary government,
net (expense) revenue (7,366,605) (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)
General revenues and other changes in net position:
Governmental activities:
Property taxes 7,326,125 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
Public services tax 2,141,094 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
Intergovernmental 1,092,365 1,027,237 1,002,183 929,762 918,034 936,215 797,773 789,922 895,188 954,600
Miscellaneous 507,592 827,991 469,614 415,330 493,243 1,019,320 950,040 447,741 562,941 577,719
Interest earning - unrestricted 26,210 29,568 20,670 32,015 61,071 36,378 38,978 100,429 242,563 398,463
Gain on sale of capital assets 523,164 - - - - - - - 2,269
Transfers 400,000 400,000 395,000 395,000 335,000 235,000 (1,392,164) 215,000 215,000 210,000
Total governmental activities 11,493,386 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
Business-type activities:
Investment earnings 56,905 5,721 5,708 5,994 1,756 2,313 2,900 4,653 14,451 22,377
Other general revenues - - - - - - - - - -
Transfers (400,000) (400,000) (395,000) (395,000) (335,000) (235,000) 1,392,164 (215,000) (215,000) (210,000)
Total business-type activities (343,095) (394,279) (389,292) (389,006) (333,244) (232,687) 1,395,064 (210,347) (200,549) (187,623)
Total primary government 11,150,291 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
Change in net position:
Governmental activities 377,717 567,255 1,035,921 556,846 2,415,950 1,792,830 163,554 2,462,645 3,022,223 2,289,355
Business-type activities 3,405,969 745,144 36,163 226,544 300,605 232,745 1,939,327 380,492 360,676 36,482
Total primary government 3,783,686$ 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$
Fiscal Year
MIAMI SHORES VILLAGE, FLORIDA
CHANGES IN NET POSITION
FOR THE LAST TEN FISCAL YEARS
(accrual basis of accounting)
(continued)
96
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
General fund:
Reserved -$ -$ -$ -$ -$ -$ 134,569$ 80,052$ 71,923$ 189,953$
Unreserved - - - - - - 6,391,651 5,014,190 5,449,842 4,022,283
Nonspendable *7,786 3,741 11,698 32,305 33,480 1,885 - - - -
Restricted *- - - - - - - - - -
Committed *- 31,562 31,562 45,947 77,512 63,109 - - - -
Assigned *- - - - - - - - - -
Unassigned *7,957,802 8,553,593 7,923,177 7,884,961 7,846,925 7,609,716 - - - -
Total general fund 7,965,588$ 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$
All other governmental funds:
Reserved -$ -$ -$ -$ -$ -$ 5,247,645$ 5,449,479$ 4,300,256$ 2,852,772$
Unreserved reported in:
Special revenue funds - - - - - - 201,327 348,194 229,152 861,799
Capital project funds - - - - - - 566,251 603,735 551,837 560,171
Nonspendable *- - - - 59,270 61,225 - - - -
Restricted *5,710,324 5,953,557 5,731,494 6,042,082 5,798,976 3,975,983 - - - -
Committed for:
Capital projects *581,630 578,434 649,494 611,766 955,728 1,748,148 - - - -
Assigned *- - - - - - - - - -
Unassigned *- - - - - - - - - -
Total all other governmental funds 6,291,954$ 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$
*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
97
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Revenues:
Taxes 7,326,125$ 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$
Public services taxes 2,141,094 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
Licenses and permits 1,257,228 1,237,435 1,018,301 841,572 914,833 1,052,626 658,833 671,674 682,951 666,628
Intergovernmental 1,890,677 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
Charges for services 1,732,617 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
Fines and forfeitures 517,648 613,743 629,524 858,753 1,955,837 423,905 444,944 495,503 267,435 297,075
Miscellaneous 507,592 827,991 555,417 415,330 493,243 986,649 950,040 447,741 529,163 577,719
Investment earnings 24,149 27,058 18,166 32,015 59,289 31,796 35,153 94,300 227,663 349,971
Contributions - - - - - - - - 15,570 19,148
Total revenues 15,397,130 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
Expenditures:
General government 3,045,728 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
Public safety 6,309,748 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
Public works 1,990,600 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
Culture and recreation 2,720,207 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
Capital outlay 1,927,324 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
Debt services:
Principal 657,889 635,837 589,036 4,362,580 487,690 465,351 448,297 431,763 415,130 399,008
Interest 168,811 272,374 283,840 432,997 421,599 436,736 455,810 473,831 495,997 507,244
Total expenditures 16,820,307 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
(Deficiency) excesss of revenues over
expenditures (1,423,177) (309,302) (664,636) (4,418,124) 1,086,178 683,623 810,793 677,640 1,981,032 1,303,378
Other financing sources (uses):
Proceeds from long-term debt - 4,017,600 - 3,923,000 - - - - - -
Payment to refunding agent - (3,890,000) - - - - - - - -
Sales of capital assets - 523,164 - - - - - - - -
Transfer in 4,474,312 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
Transfer out (4,012,312) (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)
Total other financing sources (uses)462,000 1,082,764 395,000 4,263,300 225,747 235,000 235,000 215,000 135,000 (201,493)
Net change in fund balances (961,177)$ 773,462$ (269,636)$ (154,824)$ 1,311,925$ 918,623$ 1,045,793$ 892,640$ 2,116,032$ 1,101,885$
Debt service as a percentage of
noncapital expenditures 5.6%6.3%6.2%27.4%7.2%7.3%7.6%7.4%7.7%7.6%
Fiscal Year
MIAMI SHORES VILLAGE, FLORIDA
CHANGES IN FUND BALANCES FOR GOVERNMENTAL FUNDS
FOR THE LAST TEN FISCAL YEARS
98
Ad-Valorem Taxes Public Licenses Charges Fines and Interest
Fiscal Year General Purpose Service Taxes and Permits Intergovernmental for Services Forfeitures Miscellaneous Income Total
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
2016 6,864,998 2,141,094 1,257,228 1,092,365 1,732,617 352,026 357,494 14,492 13,812,314
Revenues included in the General and Excise Tax Funds
GENERAL GOVERNMENTAL AND EXCISE TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(accrual basis of accounting)
MIAMI SHORES VILLAGE, FLORIDA
99
Fiscal
Year Total Total Total
Ended Personal Centrally Assessed Direct Tax Market
September 30,Property Property Assessed Value Rate Value
2007 810,656,588$ 22,876,703$ 1,319,888$ 834,853,179$ 9.1059 1,853,915,592$
2008 939,127,227 22,814,441 1,317,506 963,259,174 7.8164 2,214,199,534
2009 902,193,025 18,873,700 1,612,487 922,679,212 8.2929 2,047,175,031
2010 778,813,734 17,201,636 2,133,438 798,148,808 8.7059 1,524,554,727
2011 703,899,345 15,775,621 1,498,857 721,173,823 8.7762 1,283,953,769
2012 698,738,442 16,953,525 1,544,711 717,236,678 8.7855 1,243,667,012
2013 727,955,201 17,910,658 1,530,814 747,396,673 8.7500 1,284,277,736
2014 744,161,594 18,898,889 1,071,836 764,132,319 8.6949 1,294,780,508
2015 808,067,935 20,443,472 1,281,491 829,792,898 8.6392 1,483,377,513
2016 880,336,926 19,782,931 1,509,219 901,629,076 8.4289 1,692,889,026
Source: Miami-Dade County Property Appraisal Office.
as a percentage
45.03%
43.50%
45.07%
Note:Property in theVillage is reassessedeachyear.State law requiresthePropertyAppraiser to appraiseproperty at100%of marketvalue.The
FloridaConstitutionwasamended,effectiveJanuary 1,1995,to limit annual increases in assessedvalue of propertywithhomesteadexemption to 3
percent per year or theamount of theConsumerPriceindex,whichever is less.Theincrease is not automaticsince no assessedvalueshallexceed
market value. Tax rates are per $1,000 of assessed value.
of Market Value
MIAMI SHORES VILLAGE, FLORIDA
ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY
FOR THE LAST TEN FISCAL YEARS
53.26%
58.20%
59.02%
55.94%
57.67%
56.17%
52.35%
Assessed Value
100
Fiscal Total
Year Total Direct &
Ended City Debt Direct County-Debt Overlapping
September 30,Wide Service Rate Wide Service Fire Library School State Rates
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
2016 7.9000 0.5289 8.4289 4.6583 0.4586 2.4293 - 7.6120 0.8871 24.4742
(1) Overlapping rates are those of local and county governments that apply to property owners within the Village of Miami Shores.
Additional information:
Property tax rates are assessed per $1,000 of Taxable Assessed Valuation
Tax rate limits:
City 10.000 Mils
County 10.000 Mils
School 10.000 Mils
State 10.000 Mils
Source: Miami Dade County Finance Department, Tax Collector's Division
Miami Shores Village County Special Districts
MIAMI SHORES VILLAGE, FLORIDA
DIRECT AND OVERLAPPING GOVERNMENTS (1)
PROPERTY TAX RATES
FOR THE LAST TEN FISCAL YEARS
101
Percentage Percentage
Taxable of Total City Taxable of Total City
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Value Value Rank Value
Northern Trust Bank (Publix)8,106,000$ 1 0.90%9,476,894$ 2 1.14%
Shore Square Properties, LLC 7,631,002 2 0.85%0.00%
Tropical Chevrolet, Inc.7,057,043 3 0.78%7,882,930 3 0.94%
Florida Power & Light Co.6,673,718 4 0.74%0.00%
DVS LLC 3,363,800 5 0.37%0.00%
Frederic Puren 3,273,367 6 0.36%0.00%
Wal Miami LLC 2,860,000 7 0.32%0.00%
88 Biscayne Management LLC 2,786,776 8 0.31%0.00%
Bank of America NA 2,711,933 9 0.30%0.00%
Palazzo Leoni LLC 2,596,150 10 0.29%0.00%
City National Bank of Florida - 0.00%9,549,295 1 1.14%
Ramiro del Amo - 0.00%4,092,204 4 0.49%
Camp Biscayne at the Grove - 0.00%3,591,813 5 0.43%
First States Investors 5200 LLC - 0.00%3,476,967 6 0.42%
Shores at Biscayne LLC - 0.00%3,319,330 7 0.40%
Bujolo, Inc - 0.00%2,921,115 8 0.35%
Robert Ader & W - 0.00%2,383,125 9 0.29%
Sandra Chaille - 0.00%2,265,811 10 0.27%
Total 47,059,789$ 5.22%48,959,484$ 5.86%
Source: Miami-Dade County Property Appraiser Office
2016 2007
MIAMI SHORES VILLAGE, FLORIDA
CURRENT YEAR AND TEN YEARS AGO
PRINCIPAL PROPERTY TAX PAYERS
102
Fiscal
Year Total Levied Collections
Ended for the Percentage in Subsequent Percentage
September 30,Fiscal Year Amount of Levy Years Amount of Levy
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%
2016 7,122,870 6,803,657 95.5%61,341 6,864,998 96.4%
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
103
Busines-type
Activities Percentage
Fiscal of Actual
Year General Taxable Percentage
Ended Obligation Loan Revenue Total Primary Value of of Personal
September 30,Bonds Payable Bonds Government Property Income
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%
2016 5,596,900 590,938 4,840,000 11,027,838 1.22%2.00%
Governmental Activitites
MIAMI SHORES VILLAGE, FLORIDA
RATIOS OF OUTSTANDING DEBT BY TYPE
FOR THE LAST TEN FISCAL YEARS
104
Percentage Amount
Debt Applicable Applicable
Governmental Unit Outstanding To City To City
701,809,370
Overlapping debt:
Miami-Dade County, Florida (1)1,528,306$ 0.39%5,980$
Miami-Dade County Public Schools (2)519,258 0.34%1,786
Total overlapping debt 2,047,564 7,766
Direct debt:
Miami Shores Village 6,188 100.00%6,188
Total direct and overlapping debt 2,053,752$ 13,954$
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, 2016
(in thousands)
105
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Debt limit 84,566,008$ 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$
Total net debt applicable to limit 5,596,900 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
Legal debt margin 78,969,108$ 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$
Total net debt applicable to the
limit as a percentage of debt limit 6.62%7.65%8.60%9.20%9.86%10.18%9.40%10.03%8.04%8.96%
Legal debt margin calculation for fiscal year 2016:
Assessed value 901,629,076$
Debt limit (10% of assessed value)90,162,908
Debt applicable to limit:
Total bonded debt 11,027,838
Less:
Revenue bonds (4,840,000)
Installment loans (590,938)
Total debt applicable to limitation 5,596,900
Legal debt margin 84,566,008$
MIAMI SHORES VILLAGE, FLORIDA
LEGAL DEBT MARGIN INFORMATION
FOR THE LAST TEN FISCAL YEARS
Fiscal Year
106
Personal Per
Income Capita
Estimated (Thousand of Personal Unemployment
Year Population (1)Dollars) Income (2)Rate (2)
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%
2016 10,806 552,359 51,116 5.7%
Sources:
(1) State of Florida Department of Revenue
(2) U.S. Bureau of Labor Statistics
MIAMI SHORES VILLAGE, FLORIDA
DEMOGRAPHIC AND ECONOMIC STATISTICS
FOR THE LAST TEN CALENDAR YEARS
107
Percentage Percentage
of Total County of Total County
Employer Employees Rank Employment Employees Rank Employment
Miami-Dade County Public Schools 33,477 1 3.02%50,000 1 4.47%
Miami-Dade County, Florida 25,502 2 2.30%32,000 2 2.86%
Federal Government 19,200 3 1.73%20,400 3 1.82%
Florida State Government 17,100 4 1.54%17,000 4 1.52%
University of Miami 12,818 5 1.16%9,874 8 0.88%
Baptist Health Systems of South FL 11,353 6 1.03%10,826 6 0.97%
American Airlines 11,031 7 1.00%9,000 9 0.80%
Jackson Health System 9,797 8 0.88%10,500 7 0.94%
City of Miami 3,997 9 0.36%- N/A N/A
Florida International University 3,534 10 0.32%- N/A N/A
Miami Dade Community College - N/A N/A 6,500 10 0.58%
Publix Super Markets - N/A N/A 11,000 5 0.98%
Total Civilian Labor Force Employment 1,107,441 1,118,568
Source: The Beacon Council, Miami Florida, Miami Business Profile
2016 2007
MIAMI SHORES VILLAGE, FLORIDA
PRINCIPAL EMPLOYERS LOCATED IN MIAMI-DADE COUNTY
CURRENT YEAR AND TEN YEARS AGO
108
Function/Program 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
General government:
Administration:
Full time 10 10 8 10 9 9 9 9 9 10
Part time 6 6 5 5 5 5 - - - -
Finance:
Full time 6 5 5 5 5 5 5 4 4 4
Part time - - - - - - 1 1 1 1
Public works:
Full time 43 39 43 41 40 40 47 45 44 60
Part time 1 1 - 1 - - 1 2 1 2
Culture and recreation:
Recreation:
Full time 15 13 12 12 13 13 13 11 12 12
Part time 67 63 72 51 30 30 51 56 48 64
Library:
Full time 4 4 2 3 3 3 3 3 3 3
Part time 6 6 8 7 6 6 7 7 7 7
Public safety
Police
Full time 42 40 43 43 44 44 45 45 43 47
Part time 4 4 4 3 3 3 3 3 3 5
Total 204 191 202 181 158 158 185 186 175 215
Source: Village Finance Office
MIAMI SHORES VILLAGE, FLORIDA
VILLAGE EMPLOYEES BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal Year
109
COMPLIANCE SECTION
110
Alberni Caballero & Fierman, LLP
4649 Ponce de Leon Blvd.
Suite 404
Coral Gables, Florida 33146
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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, 2016, and the related notes to the financial statements, which
collectively comprise the Village’s basic financial statements, and have issued our report thereon dated May 31,
2017.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Village’s internal control over
financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for
the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion
on the effectiveness of the Village’s internal control. Accordingly, we do not express an opinion on the effectiveness
of the Village’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will
not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to
merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and
was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant
deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we
consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
111
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 di sclosed 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 complianc e and the
results of that testing, and not to provide an opinion on the effectiveness of the Village’s internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards
in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any
other purpose.
Alberni Caballero & Fierman, LLP
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Coral Gables, Florida
May 31, 2017
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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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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, 2016, and have issued our report thereon dated May 31, 2017.
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 an examination conducted in accordance with AICPA
Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules
of the Auditor General of the State of Florida. Disclosures in those reports, which are dated May 31, 2017, 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.
113
Financial Condition
Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require that we apply appropriate procedures
and 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 responsibility to monitor the Village’s financial condition, and our
financial condition assessment was based in part on representations made by management and the review of
financial information provided by same. Our assessment was performed as of the fiscal year end.
Annual Financial Report
Section 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, require that we apply appropriate procedures
and report the results of our determination as to whether the annual financial report for the Village for the fiscal year
ended September 30, 2016, 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, 2016.
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, the Mayor, 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
May 31, 2017
114
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 ACCOUNTANTS’ REPORT ON COMPLIANCE PURSUANT TO
SECTION 218.415 FLORIDA STATUTES
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, 2016. 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, 2016.
This report is intended solely for the information and use of management of the Village, the Mayor, the Village
Council, other within the Village, and the Auditor General of the State of Florida 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
May 31, 2017