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2019-2020 PAFR1 For the Fiscal year ended September 30, 2020 Miami Shores Village – A Florida Municipality VOL. 2 NO. 2 MIAMI SHORES VILLAGE 2 TABLE OF CONTENTS What is the Popular Annual Financial Report?…………………………………………………………………………………..3 Miami Shores Village…………………………………………………………………………………………………………………….……3 Financial Highlights………………………………………………………………………………………………………………………….…4 Net Position……………………………………………………………………………………………………………………..………4 Types of Funds…………………………………………………………………………………………………………………………..…….5-6 Major Governmental Funds……………………………………………………………………………………….……………5 Nonmajor Governmental Funds…………………………………………………………………………………..………….5 Proprietary Funds…………………………………………………………………………………………………………..……....5 Fiduciary Funds………………………………………………………………………………………………………….……………6 General Fund………………………………………………………………………………………………………………………..……….6-10 General Fund Revenues………………………………………………………………………………………………………..6-8 General Fund Expenditures…………………………………………………………………………………………………..8-9 General Fund Budgetary Highlights…………………………………………………………………………………….9-10 Fund Balance……………………………………………………………………………………………………………………….……...10-11 General Fund………………………………………………………………………………………………………….………..10-11 Business-Type Activities…………………………………………………………………………………………………….…..11 Capital Assets……………………………………………………………………………………………………………………………………12 Long-term Debt……………………………………………………………………………………………………………………………12-13 Miami Shores Village, Florida Refunding General Obligation Bond, Series 2013…………………….12 Miami Shores Village, Florida Refunding General Obligation Bond, Series 2015…………………….13 Florida Local Government Finance Commission…………………………………………………………………….13 Other………………………………………………………………………………………………………………………………..…..13 Economic Growth/Factors and Long-term Financial Planning………………………………………………..…..13-14 Awards…………………………………………………………………………………………………………………………………..……14-15 Certificate of Achievement for Excellence in Financial Reporting………………………………..………...14 Popular Annual Report………………………………………………………………………………………………….….14-15 Village Information…………………………………………………………………………………………………………………….…….16 MIAMI SHORES VILLAGE 3 WHAT IS THE POPULAR ANNUAL FINANCIAL REPORT? This report is designed to be a more compact and concise view and picture of the Village’s finances. The information used in developing the Popular Annual Report was taken from the Comprehensive Annual Financial Report for the fiscal year ended September 30, 2020. The financial statements included in the Comprehensive Annual Report conform to generally accepted accounting principles (GAAP), and are audited by the Village’s independent auditor, Caballero Fierman Llerena & Garcia, LLP. The Annual Report contains a more detailed account of the Villages finances than what is included in this report. The Popular Annual Report is non-GAAP and unaudited. Miami Shores Village is excited to be presenting the Popular Annual Financial Report for the second continuous year, for the fiscal year ended September 30, 2020. MIAMI SHORES VILLAGE Miami Shores Village, a predominately residential community in Northern Miami-Dade County, which covers a 2.5 square mile area, was incorporated in 1932. The Village operates under a Council-Manager form of government. The Council is formed of five members. The Village Manager, Village Clerk and Village Attorney are appointed by the Village Council. Department Heads report to the Village Manager. Miami Shores Village provides a full range of municipal services while employing just under 200 employees, between part-time and full-time staff. MIAMI SHORES VILLAGE 4 FINANCIAL HIGHLIGHTS Net Position At September 30, 2020, Miami Shores Village assets and deferred outflows exceeded its liabilities and deferred inflows by $31.2 million (net position). The Village had an unrestricted net position of $5.6 million, an increase of $1.3 million or 33% increase as compared to FY 2019. This increase is attributed to the re-assignment of budgeted personnel, due to the COVID-19 pandemic, for which the Village was reimbursed and savings in the Capital Project Fund as projects were unable to be completed. Total net position increased by $2.4 million in FY 2020 to $28.8 million. This increase is made up of a $2.5 million increase in governmental activities and $146 thousand decrease in business-type activities. As of the end of the current fiscal year, governmental funds for Miami Shores Village reported combined ending fund balances totaling $11.8 million. Of this, $5.9 million was unassigned, which is available for spending at the government's discretion. $1.4 million was committed for future capital projects and encumbrances, and $4.4 million was restricted. The nonspendable fund balance of approximately $9 thousand was related to prepaid items. The net change in fund balance during FY2020 of $428 thousand is indicative of the financial stability of the Village. The General Fund’s fund balance increased by $704 thousand for the fiscal year ended September 30, 2020. This increase was a result of unfilled vacant positions, other lower than budgeted cost savings and the reassignment of budgeted personnel to expenses related to the COVID-19 pandemic which were reimbursed. At the end of the current fiscal year, FY 2020, the unassigned fund balance for the General Fund was $9.3 million as compared with $8.6 million in the prior year. Included in the $9.3 million of the unassigned fund balance for the General Fund is a $3.3 million pending receivable awaiting FEMA resolution, leaving $6 million. Total Percentage Change September 30,2019 2020 2019 2020 2019 2020 2020-2019 Assets 37,173,783 38,523,237$ 9,151,423$ 9,253,931 46,325,206 47,777,168$ 3.13% Deferred Outflows of Resources 1,818,792 1,501,264 96,227 70,104 1,915,019 1,571,368 -17.95% Liabilities 11,238,483 11,535,852 4,867,255 5,233,705 16,105,738 16,769,557 4.12% Deferred Inflows of Resources 3,117,262 1,312,419 184,864 41,477 3,302,126 1,353,896 -59.00% Net Position 24,636,830$ 27,176,230$ 4,195,531$ 4,048,853$ 28,832,361$ 31,225,083$ 8.30% TotalBusiness-Type ActivitiesGovernmental Activities Statement of Net Position (Condensed) MIAMI SHORES VILLAGE 5 TYPES OF FUNDS Major Governmental Funds Excise Tax Fund – The Excise Tax Fund was closed during FY19. This fund was established to meet the requirements of a loan that has been paid in full. This Fund collected public service taxes, per loan requirements, and transferred the taxes to the General Fund. In FY20, and moving forward, these revenues are being collected in the General Fund. General Fund - This is the primary operating fund of Miami Shores Village. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. General Trust Fund - Accumulates donations and other proceeds that are restricted for specific purposes, i.e. recreation, building department, library and charter school. Grant Fund - Accounts for the proceeds received from Federal, State and other local sources in the form of grants that are restricted to expenditures for specific purposes. Police Forfeiture - Accumulates proceeds which are related to ongoing investigations. Expenditure of these funds is restricted by strict governmental rules and approval of the Village Council. Nonmajor Governmental Funds Capital Improvement Fund - Accounts for major acquisitions and projects to maintain and improve the Village. Charter High School Construction - Accounts for all the costs associated with the construction of Doctors Charter School of Miami Shores. Debt Service Fund - Bank financing, as well as, the Miami Shores Aquatic Facility (1999) and the Charter School Construction (2004) General Obligation Bonds, are accounted for in this fund. Special Revenue Funds - Accounts for specific revenues that are legally restricted to expenditures for particular purposes. The following make-up the Village’s Special Revenue Funds: Local Option Gas Tax, Transportation Surtax, Law Enforcement Training and Brockway Memorial Library Fund. Proprietary Funds Enterprise Funds - The Enterprise Funds are the “businesses” of the Village. The Village has three Enterprise Funds: Stormwater, Sanitation and Water & Sewer operations. Internal Service Funds - The Village has two Internal Service Funds, the Risk Management Fund and the Fleet Maintenance Fund. 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. MIAMI SHORES VILLAGE 6 Fiduciary Funds Fiduciary Funds include Pension Funds for the general employees and police officers, as well as, a Private Purpose Trust Fund. The General Fund will be the focus of the PAFR. GENERAL FUND General Fund Revenues General Fund revenues increased $2.2 million or 16% in FY 2020 from FY 2019, totaling over $16 million in fiscal year 2020. Property Taxes amounted to over $9.2 million, 57% of revenues. Actual taxes levied by the Village in 2020 reflected an increase of $619 thousand. The millage rate of 7.9 mils did not change from FY2019 to FY2020. MIAMI SHORES VILLAGE 7 Public service taxes, franchise fees, utility fees and communication service taxes previously recorded in the Excise Tax Fund, are now included in the General Fund. The General Fund received $2.1 million in FY20. Licenses and Permits make up 6% of the General Fund revenues. Revenues, such as the Village’s local business tax and fees associated with building permits, which amounted to $913 thousand, are included here. The State of Florida transmits to the Village revenues, such as Sales Tax, which are included in Intergovernmental Revenues. Intergovernmental Revenues amounted to $1 million. The majority of the revenue, included in the $1.3 million received in Charges for Services, comes from Library and Recreation program fees. Traffic fines, Code Compliance Violations, and other fines, included in Fines and Forfeitures, amounted to $957,749 in fiscal year 2020. The rents the Village receives from the Country Club and Charter School are included in Miscellaneous Revenues. Included here as well, are charges for lien searches, sales of surplus scrap and other miscellaneous transactions. $538,330 was received in this category. Looking into the future, in FY21, the Village will no longer receive rent from the Country Club as the contract was renegotiated. Interest income amounted to $71,392. 7.0000 7.5000 8.0000 8.5000 9.0000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total Village Millage For the Fiscal Years ended September 30, 2011-2020 MIAMI SHORES VILLAGE 8 As shown in the chart below, the General Fund revenues as a whole have been increasing over the past three fiscal years. In the current fiscal year, FY20, public service taxes have moved from the Excise Tax Fund into the General Fund, hence the large increase in General Fund revenues. The impact of the COVID-19 pandemic can also be seen in the below revenue trend; licenses and permits, intergovernmental revenues, charges for services and interest income were all effected as the entire world’s economy felt the effects. Included in the decrease from FY18 to FY19 in charges for services is the aquatic admission revenue for Shipwreck Cove, now Wild Waters Aquatic Park, which was under construction and then with COVID-19 was closed. The Wild Waters Aquatic Park is scheduled to open on May 1, 2021. Additionally, accounts were reclassed to reflect the correct classification which accounts for the main amount of decrease between FY18 and FY19. The main contribution to the decrease in fines and forfeitures from FY18 to FY19 is the code violation line item. In FY18 the revenue amounted to $394 thousand and in FY19, it was $209 thousand. General Fund Expenditures In addition to the $14.1 million of expenditures in the General Fund, the General Fund had transfers out in the amount of $1.6 million. Of that amount, just under $1.6 was transferred to the Capital Projects Fund and $49,925 was transferred to the Water & Sewer Fund. The following expenditures relate to personnel and operations: The General Government Expenditures of $2.5 million include amounts for the following departments: The Village Clerk, Council, Attorney, Manager, Planning & Zoning, Finance, and Non-Departmental. Public Safety, which incurred $7.5 million in expenditures, includes the following departments: Code Compliance, Building, Police, and School Crossing Guards. The $1.7 million spent in Public Works includes the divisions of Parks, Streets & Facilities Maintenance, Administration, and Recreation Maintenance. Culture and Recreation includes all of Recreation (Administration, Athletics, all Athletic 2018 2019 2020 Property Taxes 8,027,601 8,555,473 9,201,078 Public Service Taxes - - 2,107,335 Licenses and Permits 1,211,448 1,291,634 913,015 Intergovernmental Revenues 1,131,324 1,139,976 1,002,859 Charges for Services 2,034,859 1,898,020 1,278,240 Fines and Forfeitures 435,792 251,004 957,749 Miscellaneous 461,779 532,950 538,330 Interest Income 74,081 162,557 71,392 13,376,884$ 13,831,614$ 16,069,998$ General Fund Revenues by Source MIAMI SHORES VILLAGE 9 Programs, Community Center, Aquatic Center and Tennis), as well as, the Brockway Memorial Library, which together total $2.4 million. The General Fund Expenditures overall increased from FY18 to FY19 and then decreased from FY19 to FY20. The decrease from FY19 to FY20 can again be attributed to the effects of the COVID-19 pandemic and the re-assignment of budgeted staff which was reimbursed to the Village; unfilled positions and conservative spending were also factors in the decrease. Unfilled positions and conservative spending can be reflected in the decrease seen in the general government function from FY18 to FY19, additionally departments were reclassified as to the function of government they were part of in FY19. General Fund Budgetary Highlights The Village adopts annual budgets by fund, general fund department, and line item, in compliance with Florida State Statute Section 200.65. The law requires municipal organizations to prepare and adopt annual operating budgets for the General, Special Revenue and Debt Service Funds following uniform time frames related to property tax levies. The balanced budgets may be revised throughout the year. The Village’s code allows for department level budget transfers without council approval, however, department and fund total changes require Council approved budget amendments adopted by resolution. Over the course of the year, the Village amended the General Fund budget eight times. With these adjustments, disbursements were approximately $2.5 million below final budgeted amounts. Savings were due to unfilled positions, conservative spending and the re-assignment of budgeted personnel that were re-assigned and reimbursed due to the COVID-19 pandemic. The fiscal year 2020 final amended budget was $18.4 million, an increase of 8.9% over the original General Fund budget of $16.9 2018 2019 2020 General Government 3,106,681 2,489,671 2,546,624 Public Safety 6,772,524 7,998,042 7,527,123 Public Works 1,693,516 1,788,402 1,720,926 Culture and Recreation 2,796,265 2,833,193 2,355,803 14,368,986$ 15,109,308$ 14,150,476$ General Fund Expenditures by Function MIAMI SHORES VILLAGE 10 million. Revenues of $17.3 million, operating transfers from the Sanitation and Stormwater Funds of $400 thousand and appropriation of General Fund balance of $630 thousand, balanced the final adopted budget for fiscal year 2020. Fund Balance General Fund The two components that make the up the General Fund’s fund balance are nonspendable and unassigned. Nonspendable amounts cannot be spent because of form or because of legal or contractual requirements. The unspendable balance was $6,779 at the end of fiscal year 2020. Unassigned is the residual classification for the General Fund and is an indicator of the government’s net resources available for spending at the end of a fiscal year. At the end of the current fiscal year, the unassigned fund balance for the General Fund was $9.3 million as compared with $8.6 million the prior year. This $704 thousand increase can be attributed to unfilled positions, conservative spending and the reimbursement from the re-assignment of budgeted personnel due to the COVID-19 pandemic. Of the $9.3 million, $3.3 million is a pending receivable awaiting FEMA resolution, leaving $6 million. This $6 million is approximately equal to 4.4 months of General Fund operating expenditures. - 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 Actual vs. Budget Expenditures by Department in Millions Final Budget Actual MIAMI SHORES VILLAGE 11 Business Type Activities Net position of business-type activities (Stormwater, Sanitation and Water & Sewer Funds) decreased by approximately $146 thousand during fiscal year 2020. This decrease is due to the use of surplus to cover operating expenses in addition to lower than anticipated revenues. - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 General Fund Unrestricted and Unassigned Surplus For the Fiscal Years ended September 30, 2011-2020 - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 Sanitation Stormwater Water & Sewer Expenses and Program Revenues -Business-type Activities For the Fiscal Year eneded September 30, 2020 Revenue Expenses MIAMI SHORES VILLAGE 12 CAPITAL ASSETS Miami Shores Village’s investment in capital assets for its governmental and business- type activities as of September 30, 2020 amounts to $25.6 million (net of accumulated depreciation). The investment in capital assets includes Village owned buildings, equipment and other infrastructure (streets, sidewalks, easements, right-of-ways). The value of capital investments includes the cost of the Doctors’ Charter School of Miami Shores. LONG TERM DEBT Miami Shores Village, Florida Refunding General Obligation Bond, Series 2013 In February 2013, the Village issued the Miami Shores Village, Florida Refunding General Obligation Bond, Series 2013 to refund the cost of the Florida Municipal Loan Council Revenue Bond, Series 1999 which was for the Aquatic Facility’s design, development and construction. Principal is due annually (through 2029) at various amounts. The bonds bear interest at variable rates, payable semi-annually. The bonds are secured by ad valorem revenues. The indenture contains a provision that in the event of default, outstanding amounts including accrued interest are due immediately. Classification Land 2,386,158$ $ -2,386,158$ Construction in progress 2,155,535 -2,155,535 Building 9,179,339 -9,179,339 Infrastructure 5,944,639 1,567,880 7,512,519 Machinery and equipment 2,733,864 947,856 3,681,720 Intangible 635,307 -635,307 Totals 23,034,842$ 2,515,736$ 25,550,578$ Capital Assets as of September 30, 2020 (net of accumulated depreciation) Governmental Activities Business-Type Activities Total September 30,Principal Interest Total 2021 138,000 39,887 177,887 2022 145,000 35,604 180,604 2023 146,000 31,201 177,201 2024 152,000 26,692 178,692 2025 153,000 22,077 175,077 2026-2029 653,000 40,053 693,053 1,387,000$ 195,514$ 1,582,514$ Florida Refunding General Obligation Bond, Series 2013 MIAMI SHORES VILLAGE 13 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, to refund the cost of the Miami Shores Village, Florida General Obligation Bonds, Series 2004 which was to build the Doctors Charter School Facility. Principal is due annually (through 2033) at various amounts. 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. The indenture contains a provision that in the event of default, outstanding amounts including accrued interest are due immediately. Florida Local Government Finance Commission During fiscal year 2017, 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. Annual principal payments of $60,000 are scheduled for the next five years. Other The Village does not currently have an unused line of credit or assets placed as collateral for debt. ECONOMIC GROWTH/FACTORS AND LONG-TERM FINANCIAL PLANNING As a predominately residential community with the “business community” restricted to a six-block area on Second Avenue and isolated pockets on Biscayne Boulevard, property values and other residentially related trends are monitored to determine the health and vitality of the community. Miami Shores Village not only relies on property taxes for revenue, but also other taxes and fees such as sales tax, gasoline tax, building permits and occupational licenses. Actual taxes levied by the Village in 2020 reflected an increase of $619 thousand. Property values increased 7% as compared with 2019. It is anticipated that assessed values will continue to increase as the Village is highly desirable, but the increase in property values will be slightly lower than previous years. The Village is experiencing a significant amount of residential renovation and teardown/rebuild activity, with a net new taxable value of $8.9 million reflected in fiscal year 2020. Expenditures such as payroll and personnel benefits will continue to increase. Fiscal year 2021 budgeted expenditures and transfers are expected to be $16.4 million while fiscal year 2020 was $16.9 million. This 3% decrease is due to conservative September 30,Principal Interest Total 2021 193,400 74,887 268,287 2022 200,300 69,974 270,274 2023 201,800 64,887 266,687 2024 208,200 59,762 267,962 2025 214,200 54,473 268,673 2026-2030 1,160,900 187,883 1,348,783 2031-2033 769,500 39,461 808,961 2,948,300$ 551,327$ 3,499,627$ Florida Refunding General Obligation Bond, Series 2015 MIAMI SHORES VILLAGE 14 budgeting as the COVID-19 pandemic economic effects still remain uncertain and ever changing. The Village is maintaining its unassigned fund balance so that a portion of it will be available to preclude or moderate reductions in revenues related to the COVID-19 pandemic, fund capital improvements, or be available to defray the outstanding costs associated with hurricanes or the costs of other natural disasters. During FY2020, the biggest project completed was the continuation of a new aquatics playground, Wild Waters Aquatic Park, at the Village’s municipal aquatic facility. A drainage project in Shores Estates with FEMA grant funds as well as finalizing a septic to sewer project in Shores Estates using grant funds from the Florida Department of Environmental Protection. Other long-term plans of the Village include working on an age friendly initiative to make the community more livable for senior citizens and the completion of the expansion of the library’s children’s section, which is to be completed in early FY2022. With regard to the COVID-19 pandemic, the Village remains closely monitoring and taking a conservative approach in order to continue to provide basic services to residents and to ensure the high quality of life residents currently enjoy. AWARDS Certificate of Achievement for Excellence in Financial Reporting Miami Shores Village comprehensive annual reports for the years ended 2018-2020, from which the information on all pages has been drawn, were awarded the Certificate of Achievement for Excellence in Financial Reporting by Government Finance Officers Association of the United States and Canada (GFOA). The Certificate of Achievement is the highest form of recognition for excellence in state and local government financial reporting. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such a Comprehensive Annual Financial Report must satisfy both generally accepted accounting principles and applicable legal requirements. Certificate of Achievement is valid for a period of one year only. We believe that our current Comprehensive Annual Report continues to conform to the Certificate of Achievement Program’s requirement, and we are submitting it to the GFOA to determine its eligibility for another Certificate. Popular Annual Report The Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to Miami Shores Village for its Popular Annual Financial Report for the fiscal year ended September 30, 2019. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award- recognizing conformance with the highest standards for preparation of state and local government popular reports. MIAMI SHORES VILLAGE 15 In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creativity, presentation, understandability, and reader appeal. An Award for Outstanding Achievement in Popular Annual Financial Reporting is valid for a period of one year only. We believe our current report continues to conform to the Popular Annual Financial Reporting requirements, and we are submitting it to GFOA to determine its eligibility for another Award. MIAMI SHORES VILLAGE 16 Like us on Facebook at Miami Shores Village Official Government Follow us on Twitter @miamishores1932 Follow us on Instagram @miamishoresvillage1932 MIAMI SHORES VILLAGE Contact Us Tel: 305-795-2207 Fax: 305-756-8972 www.msvfl.gov Village Council Crystal Wagar, Mayor Alice Burch, Vice Mayor Sean Brady, Councilman Stephen Loffredo, Councilman Jonathan Meltz, Councilman ADMINISTRATION OFFICERS Thomas J. Benton, Village Manager Ysabely Rodriguez, Village Clerk Richard Sarafan, Village Attorney DIRECTORS Michelle Brown, Library Scott Davis, Public Works Angela Dorney, Recreation Holly Hugdahl, Finance Travis Kendall, Planning & Zoning Kevin Lystad, Chief of Police Ismael Naranjo, Building Lazaro Remond, Code Compliance REQUESTS FOR INFORMATION 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 NE 2nd Avenue Miami Shores, FL 33138-2382 The Comprehensive Annual Financial Report and PAFR are available at the Village Hall of Miami Shores and at www.msvfl.gov.