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2020 MIAMI SHORES VILLAGE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020 PREPARED BY THE FINANCE DEPARTMENT MIAMI SHORES VILLAGE, FLORIDA TABLE OF CONTENTS PAGE I. INTRODUCTORY SECTION (Unaudited) Letter of Transmittal i-v GFOA Certificate of Achievement vi List of Elected Officials vii List of Appointed Officials viii Organizational Chart ix II. FINANCIAL SECTION Independent Auditors’ Report 1-2 Managements’ Discussion and Analysis (Required Supplementary Information) 3-12 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position 13 Statement of Activities 14 Fund Financial Statements: Balance Sheet – Governmental Funds 15 Reconciliation of the Balance Sheet to the Statement of Net Position – Governmental Funds 16 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 17 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 18 Statement of Net Position – Proprietary Funds 19 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds 20 Statement of Cash Flows – Proprietary Funds 21 Statement of Fiduciary Net Position – Fiduciary Funds 22 Statement of Changes in Fiduciary Net Position 23 Notes to the Basic Financial Statements 24-62 Required Supplementary Information: Budgetary Comparison Schedule: General Fund 63-64 Notes to Budgetary Comparison Schedule 65 Schedule of Changes in Village’s Net Pension Liability and Related Ratios – General Employees’ Retirement System (Village’s Reporting) 66 Schedule of Changes in Village’s Net Pension Liability and Related Ratios – General Employees’ Retirement System (Plan’s Reporting) 67 Schedule of Contributions – General Employee’s Retirement System (Village’s Reporting) 68 Schedule of Contributions – General Employee’s Retirement System (Plan’s Reporting) 69 Schedule of Investment Returns – General Employee’s Retirement System 70 Schedule of Changes in Village’s Net Pension Liability and Related Ratios – Police Officers’ Retirement System (Village’s Reporting) 71 Schedule of Changes in Village’s Net Pension Liability and Related Ratios – Police Officers’ Retirement System (Plan’s Reporting) 72 Schedule of Contributions – Police Officer’s Retirement System (Village’s Reporting) 73 MIAMI SHORES VILLAGE, FLORIDA TABLE OF CONTENTS PAGE II. FINANCIAL SECTION (Continued) Required Supplementary Information (Continued): Schedule of Contributions – Police Officer’s Retirement System (Plan’s Reporting) 74 Schedule of Investment Returns – Police Officer’s Retirement System 75 Schedule of Changes in Total OPEB Liability and Related Ratios 76 Supplementary Information: Combining and Individual Financial Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds 77-78 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds 79-80 Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Governmental Funds 81-82 Internal Service Funds: Combining Statement of Net Position 83 Combining Statement of Revenues, Expenses and Changes in Fund Net Position 84 Combining Statement of Cash Flows 85 Fiduciary Funds: Combining Statement of Fiduciary Net Position - Pension Trust Funds 86 Combining Statement of Changes in Fiduciary Net Position - Pension Trust Funds 87 III. STATISTICAL SECTION (Unaudited) Net Position by Component 88 Changes in Net Position 89-90 Fund Balances for Governmental Funds 91 Changes in Fund Balances of Governmental Funds 92 General Governmental and Excise Tax Revenues by Source 93 Assessed Value and Actual Value of Taxable Property 94 Property Tax Rates Direct and Overlapping Governments 95 Principal Property Taxpayers – Current Year and Nine Years Ago 96 Operating Property Tax Levies and Collections 97 Ratios of Outstanding Debt By Type 98 Direct and Overlapping Governmental Activities Debt 99 Legal Debt Margin Information 100 Demographic and Economic Statistics 101 Principal Employers Located in Miami Dade County – Current Year and Nine Years Ago 102 Village Employees by Function/Program 103 IV. COMPLIANCE SECTION Independent Auditors’ Report on Internal Controls over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 104-105 Management Letter In Accordance with the Rules of the Auditor General of the State of Florida 106-107 Independent Accountants’ Report on Compliance Pursuant to Section 218.415 Florida Statutes 108 INTRODUCTORY SECTION -vi- Mayor Crystal Wagar Vice Mayor Alice Burch Councilman Sean Brady Councilman Stephen Loffredo Councilman Jonathan Meltz MIAMI SHORES V ILLAGE, FLORIDA LIST OF ELECTED OFFICIALS SEPTEMBER 30, 2020 -vii- MIAMI SHORES VILLAGE, FLORIDA LIST OF APPOINTED OFFICIALS SEPTEMBER 30, 2020 APPOINTED OFFICIALS Village Manager....................................................................................................Thomas J. Benton Village Clerk............................................................................................Ysabely Rodriguez, CMC Village Attorney.......................................................................................................Richard Sarafan DEPARTMENT HEADS Building Director......................................................................................................Ismael Naranjo Code Compliance Director ......................................................................................Lazaro Remond Finance Director...............................................................................................Holly Hugdahl, CPA Library Director...................................................................................................... Michelle Brown Planning & Zoning Director ......................................................................................Travis Kendall Chief of Police.............................................................................................................Kevin Lystad Public Works Director ....................................................................................................Scott Davis Recreation Director...................................................................................................Angela Dorney VILLAGE AUDITORS Caballero Fierman/OHUHQD *DUFLD, LLP Accountants and Advisors -viii- MIAMI SHORES VILLAGE, FLORIDA ORGANIZATION CHART SEPTEMBER 30, 2020 MAYOR & COUNCIL MAYOR - CRYSTAL WAGAR VICE MAYOR - ALICE BURCH COUNCILMAN - SEAN BRADY COUNCILMAN - STEPHEN LOFFREDO COUNCILMAN - JONATHAN MELTZ VILLAGE CLERK YSABELY RODRIGUEZ,CMC VILLAGE ATTORNEY RICHARD SARAFAN, ESQ. VILLAGE MANAGER THOMAS J. BENTON BUILDING DIRECTOR ISMAEL NARANJO FINANCE DIRECTOR HOLLY HUGDAHL, CPA PLANNING & ZONING DIRECTOR TRAV IS KENDALL PUBLIC WORKS DIRECTOR SCOTT DAVIS CHIEF OF POLICE KEVIN LYSTAD RECREATION DIRECTOR ANGELA DORNEY CODE COMPLIANCE DIRECTOR LAZARO REMOND DIRECTOR OF LIBRARY SERVICES MICHELLE BROWN -ix- FINANCIAL SECTION INDEPENDENT AUDITORS’ REPORT 1 8950 SW 74th Court I Suite 1210 I Miami, FL 33156 T: 305.662.7272 I F: 305.662.4266 I CFLGCPA.COM INDEPENDENT AUDITORS’ REPORT Honorable Mayor and Members of the Village Council Miami Shores Village, Florida Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Miami Shores Village, Florida (the “Village”) as of and for the fiscal year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise the Village’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the 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 auditors’ 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 provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village, as of September 30, 2020, and the respective changes in financial position and, where applicable, cash flows for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America. 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 the Budgetary Comparison Schedules, Pension, and Other Post-Employment Benefits Schedules, on pages 63 through 76, 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 2 8950 SW 74th Court I Suite 1210 I Miami, FL 33156 T: 305.662.7272 I F: 305.662.4266 I CFLGCPA.COM 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 25, 2021 on our consideration of the Village’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on 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. Caballero Fierman Llerena & Garcia, LLP Caballero Fierman Llerena & Garcia, LLP Miami, Florida May 25, 2021 MANAGEMENT’S DISCUSSION AND ANALYSIS (Required Supplementary Information) 6 as well as, the governmental funds and business-type activities. Governmental activities.Financial activities for the fiscal year are reported below. Key indicators, including revenues and expenditures by category are presented herein for review: Miami Shores Village Changes in Net Position (in thousands) Total percentage change Governmental activities Business-type activities Total primary government 2020 2019 2020 2019 2020 2019 2020-2019 Revenues: Program revenues: Charges for services 5,397 5,854 3,430 2,912 8,827 8,766 0.70% Operating grants & Contributions 717 816 --717 816 -12.13% Capital grants and Contributions ------ General Revenues: Property taxes 9,673 9,010 --9,673 9,010 7.36% Other taxes 2,107 2,156 --2,107 2,156 -2.27% Intergovernmental revenues 1,518 1,209 --1,518 1,209 25.56% Interest earnings - unrestricted 128 277 12 28 140 305 -54.10% Miscellaneous 675 665 --675 665 1.50% Total revenues 20,215 19,987 3,442 2,940 23,657 22,927 3.18% Expenses: General government 3,696 3,922 --3,696 3,922 -5.76% Public safety 7,230 7,776 --7,230 7,776 -7.02% Highways Streets 4,401 3,934 --4,401 3,934 11.87% Sanitation / Stormwater / Water & Sewer --3,175 7,276 3,175 7,276 -56.36% Culture & recreation 2,639 3,200 --2,639 3,200 -17.53% Interest on Long-term Debt 124 133 --124 133 -6.77% Total expenses 18,090 18,965 3,175 7,276 21,265 26,241 -18.96% Increase(decrease) in net position before Transfers 2,125 1,021 267 (4,336)2,392 (3,315) 172.16% Transfers 414 417 (414)(417)-- Increase(decrease) in net position 2,539 1,438 (147)(4,753)2,392 (3,315) 172.16% Beginning net position 24,637 23,198 4,196 8,949 28,833 32,147 -10.31% Prior period adjustment ------ Ending net position 27,176 24,637 4,049 4,196 31,225 28,833 8.30% Ending net position in governmental activities increased $2.5 million or 10% during FY2020. The increase in ending net BASIC FINANCIAL STATEMENTS Business- Governmental Type Activities Activities Total ASSETS Cash and cash equivalents 13,594,233$ 2,714,305$ 16,308,538$ Investments 321,144 - 321,144 Accounts receivable - net 1,332,370 214,179 1,546,549 Special assessment receivable - 3,717,542 3,717,542 Prepaid items 215,848 - 215,848 Inventories 24,799 86,760 111,559 Restricted assets: Cash and cash equivalents - 5,409 5,409 Capital assets not being depreciated 4,541,693 - 4,541,693 Capital assets being depreciated, net 18,493,149 2,515,736 21,008,885 Total assets 38,523,236 9,253,931 47,777,167 DEFERRED OUTLOWS OF RESOURCES OPEB 37,444 1,366 38,810 Pension 1,463,820 68,738 1,532,558 Total deferred outflows of resources 1,501,264 70,104 1,571,368 LIABILITIES Accounts payable and accrued liabilities 931,483 157,906 1,089,389 Unearned revenues 45,630 971,382 1,017,012 Noncurrent liabilities: The amount due in one year 338,306 93,193 431,499 The amount due in more than one year 10,220,432 4,011,224 14,231,656 Total liabilities 11,535,851 5,233,705 16,769,556 DEFERRED INFLOWS OF RESOURCES Business license tax 67,183 - 67,183 OPEB 170,828 6,232 177,060 Pension 1,074,408 35,245 1,109,653 Total deferred inflows of resources 1,312,419 41,477 1,353,896 NET POSITION Net investment in capital assets 18,699,542 2,515,736 21,215,278 Restricted for: Public safety 1,217,282 - 1,217,282 Transportation 786,366 - 786,366 Building department 120,783 - 120,783 Library 886,464 - 886,464 Debt service 1,209,480 - 1,209,480 Charter school 123,047 - 123,047 Recreation 89,238 - 89,238 Unrestricted 4,044,028 1,533,117 5,577,145 Total net position 27,176,230$ 4,048,853$ 31,225,083$ MIAMI SHORES VILLAGE, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30, 2020 See notes to basic financial statements 13 Operating Capital Business-Charges for Grants and Grants and Governmental TypeFunctions/ProgramsExpensesServicesContributionsContributionsActivitiesActivitiesTotalGovernmental activities:General government 4,078,744$ 1,838,539$ -$ -$ (2,240,205)$ -$ (2,240,205)$ Public safety 7,230,071 2,873,248 - - (4,356,823) - (4,356,823) Public works 4,017,590 34,629 717,036 - (3,265,925) - (3,265,925) Culture and recreation 2,638,651 650,093 - - (1,988,558) - (1,988,558) Interest on long-term debt 124,515 - - - (124,515) - (124,515) Total governmental activities 18,089,571 5,396,509 717,036 - (11,976,026) - (11,976,026) Business-type activities:Sanitation 2,829,293 2,912,517 - - - 83,224 83,224 Stormwater 282,149 479,125 - - - 196,976 196,976 Water & sewer 63,301 38,308 - - - (24,993) (24,993) Total business-type activities 3,174,743 3,429,950 - - - 255,207 255,207 Total 21,264,314$ 8,826,459$ 717,036$ -$ (11,976,026) 255,207 (11,720,819) 9,672,526 - 9,672,526 2,107,335 - 2,107,335 1,517,940 - 1,517,940 128,434 12,167 140,601 675,139 - 675,139 414,052 (414,052) - 14,515,426 (401,885) 14,113,541 2,539,400 (146,678) 2,392,722 Net position - beginning 24,636,830 4,195,531 28,832,361 27,176,230$ 4,048,853$ 31,225,083$ MIAMI SHORES VILLAGE, FLORIDAFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020Program RevenuesNet (Expense) Revenue andChanges in Net PositionSTATEMENT OF ACTIVITIESGeneral revenues:Property taxes, levied for general purposePublic service taxesIntergovernmental (unrestricted)Investment income (unrestricted)Net position - endingMiscellaneousTransfersTotal general revenues Change in net positionSee notes to basic financial statements14 Other TotalPolice Governmental GovernmentalGeneralForfeitureGeneral TrustGrantsFundsFundsASSETSCash and cash equivalents 4,530,732$ 1,187,054$ 908,577$ -$ 4,152,192$ 10,778,555$ Investments 321,144 - - - - 321,144 Accounts receivable - net 737,620 21,478 - 463,529 99,720 1,322,347 Due from other funds 4,185,988 - - - - 4,185,988 Prepaid items 6,779 - 2,000 - - 8,779 Total assets 9,782,263$ 1,208,532$ 910,577$ 463,529$ 4,251,912$ 16,616,813$ LIABILITIESAccounts payable and accrued liabilities 388,384$ 20,437$ 439,449$ -$ 26,840$ 875,110$ Due to other funds 3,915 - - 3,812,517 - 3,816,432 Unearned revenues 36,912 - - 8,718 - 45,630 Total liabilities 429,211 20,437 439,449 3,821,235 26,840 4,737,172 DEFERRED INFLOWS OF RESOURCES Business license tax 67,183 - - - - 67,183 FUND BALANCESNonspendable 6,779 - 2,000 - - 8,779 Restricted - 1,188,095 469,128 - 2,782,339 4,439,562 Committed - - - - 1,442,733 1,442,733 Unassigned 9,279,090 - - (3,357,706) - 5,921,384 Total fund balances 9,285,869 1,188,095 471,128 (3,357,706) 4,225,072 11,812,458 Total liabilities, deferred inflows of resources, and fund balances9,782,263$ 1,208,532$ 910,577$ 463,529$ 4,251,912$ 16,616,813$ MIAMI SHORES VILLAGE, FLORIDABALANCE SHEET GOVERNMENTAL FUNDSMajor Funds SEPTEMBER 30, 2020See notes to basic financial statements15 Fund balances - total governmental funds (Page 15) 11,812,458$ 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 46,575,910 Less accumulated depreciation (25,654,426) 20,921,484 Deferred inflows/outflows of resources in the statement of net position will be recognized in future periods. Deferred outflows related to OPEB 37,444 Deferred inflows related to OPEB (170,828) Deferred outflows related to pension 1,442,339 Deferred inflows related to pension (1,063,394) 245,561 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 (4,335,300) OPEB liability (517,453) Net pension liability (4,864,474) Compensated absences (753,613) (10,470,840) Net position of internal service funds are not reported with governmental funds 4,667,567 Net position of governmental activities (Page 13) 27,176,230$ SEPTEMBER 30, 2020 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 TotalPolice Governmental GovernmentalGeneralForfeitureGeneral TrustGrantsFundsFundsRevenues:Property taxes 9,201,078$ -$ -$ -$ 471,448$ 9,672,526$ Public service taxes 2,107,335 - - - - 2,107,335 Licenses and permits 913,015 - - - - 913,015 Intergovernmental revenues1,002,859 - - 515,081 717,036 2,234,976 Charges for services 1,278,240 - - - - 1,278,240 Fines and forfeitures 957,749 41,083 - - 1,873 1,000,705 Miscellaneous 538,330 50,099 65,710 - 21,000 675,139 Interest income 71,392 10,009 1,739 - 24,886 108,026 Total revenues 16,069,998 101,191 67,449 515,081 1,236,243 17,989,962 Expenditures: Current:General government 2,546,624 - 60 386,301 18,939 2,951,924 Public safety 7,527,123 71,777 19,326 - - 7,618,226 Public Works 1,720,926 - - 160,083 397,909 2,278,918 Culture and recreation 2,355,803 - 23,374 - - 2,379,177 Capital outlay - 272,416 4,694 34,362 2,027,762 2,339,234 Debt service:Principal - - - - 327,400 327,400 Interest - - - - 124,515 124,515 Total expenditures 14,150,476 344,193 47,454 580,746 2,896,525 18,019,394 (Deficiency) excess of revenues over expenditures before other financing sources (uses)1,919,522 (243,002) 19,995 (65,665) (1,660,282) (29,432) Other financing sources (uses):Transfers in 400,000 - - 81,234 1,592,357 2,073,591 Transfers (out) (1,615,965) - - - - (1,615,965) Total other financing sources (uses) (1,215,965) - - 81,234 1,592,357 457,626 Net change in fund balances 703,557 (243,002) 19,995 15,569 (67,925) 428,194 Fund balance, beginning8,582,312 1,431,097 451,133 (3,373,275) 4,292,997 11,384,264 Fund balance, ending9,285,869$ 1,188,095$ 471,128$ (3,357,706)$ 4,225,072$ 11,812,458$ MIAMI SHORES VILLAGE, FLORIDASTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESGOVERNMENTAL FUNDSFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020Major FundsSee notes to basic financial statements17 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) 428,194$ 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 outlay capitalized 2,338,183$ Less current year depreciation (1,311,374) Net adjustment 1,026,809 The issuance of long term debt (e.g., bonds, leases) provides current financial debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position.resources to governmental funds, while the repayment of the principal of long term. Principal payments 327,400 327,400 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 891,672 Change in compensated absences 18,127 Change in OPEB liability (120,828) Allocation of internal service funds' net income (31,974) 756,997 Change in net position of governmental activities (Page 14) 2,539,400$ FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020 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 1,331,732$ 1,367,636$ 14,937$ 2,714,305$ 2,442,207$ Accounts receivable - net 198,677 15,502 - 214,179 10,023 Special assessment receivable - - 3,717,542 3,717,542 - Inventories 86,760 - - 86,760 24,799 Prepaid items - - - - 207,069 Restricted assets: Cash and cash equivalents - - 5,409 5,409 - Total current assets 1,617,169 1,383,138 3,737,888 6,738,195 2,684,098 Capital assets: Capital assets not being depreciated - - - - 7,127 Capital assets being depreciated, net 942,665 1,573,071 - 2,515,736 2,106,231 Total noncurrent assets 942,665 1,573,071 - 2,515,736 2,113,358 Total assets 2,559,834 2,956,209 3,737,888 9,253,931 4,797,456 DEFERRED OUTLOWS OF RESOURCES Pension 60,146 8,592 - 68,738 21,481 OPEB 1,195 171 - 1,366 - Total deferred outflows of resources 61,341 8,763 - 70,104 21,481 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 151,791 2,065 4,050 157,906 52,458 Unearned revenues 775,278 146,511 49,593 971,382 - Compensated absences 32,082 1,111 - 33,193 6,906 Notes payable - - 60,000 60,000 - Total current liabilities 959,151 149,687 113,643 1,222,481 59,364 Non-current liabilities: Compensated absences 96,245 3,333 - 99,578 20,721 Notes payable - - 3,700,000 3,700,000 - Net pension liability 168,761 24,108 - 192,869 60,271 OPEB liability 16,430 2,347 - 18,777 - Total noncurrent liabilities 281,436 29,788 3,700,000 4,011,224 80,992 Total liabilities 1,240,587 179,475 3,813,643 5,233,705 140,356 DEFERRED INFLOWS OF RESOURCES Pension 30,839 4,406 - 35,245 11,014 OPEB 5,453 779 - 6,232 - Total deferred inflows of resources 36,292 5,185 - 41,477 11,014 NET POSITION Net investment in capital assets 942,665 1,573,071 - 2,515,736 2,113,358 Restricted for: Unrestricted 401,631 1,207,241 (75,755) 1,533,117 2,554,209 Total net position 1,344,296$ 2,780,312$ (75,755)$ 4,048,853$ 4,667,567$ Enterprise Funds Business-type Activities - MIAMI SHORES VILLAGE, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2020 See notes to basic financial statements 19 Governmental Activities - Internal Service Sanitation Stormwater Water & Sewer Total Funds Operating revenues: Charges for services 2,912,517$ 479,125$ 38,308$ 3,429,950$ 2,204,549$ Operating expenses: Administrative and general 1,040,694 66,590 48,228 1,155,512 66,649 Public works - - - - 675,023 Personnel expenses 1,045,845 111,896 - 1,157,741 240,609 Depreciation 219,134 78,800 - 297,934 333,166 Contractual services 503,584 24,863 - 528,447 - Insurance premiums and claims - - - - 826,461 Total operating expenses 2,809,257 282,149 48,228 3,139,634 2,141,908 Operating income (loss)103,260 196,976 (9,920) 290,316 62,641 Non-operating revenues (expenses): Interest income 2,290 9,711 166 12,167 20,408 Interest expense - - (76,234) (76,234) - Capital assets transferred (20,036) - 79,692 59,656 - Other expenses - - (18,531) (18,531) - Net non-operating revenues (expenses)(17,746) 9,711 (14,907) (22,942) 20,408 Income before transfers and contributions 85,514 206,687 (24,827) 267,374 83,049 Transfers in 17,257 - 49,925 67,182 14,995 Transfers out (350,000) (131,234) - (481,234) (58,569) Total other financing sources (uses) (332,743) (131,234) 49,925 (414,052) (43,574) Change in net position (247,229) 75,453 25,098 (146,678) 39,475 Net position, beginning 1,591,525 2,704,859 (100,853) 4,195,531 4,628,092 Net position, ending 1,344,296$ 2,780,312$ (75,755)$ 4,048,853$ 4,667,567$ Enterprise Funds Business-type Activities - MIAMI SHORES VILLAGE, FLORIDA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020 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 3,032,063$ 565,729$ 40,725$ 3,638,517$ 1,576,528$ Cash paid to suppliers (1,470,914) (90,946) (128,965) (1,690,825) (1,250,745) Cash paid for employees (1,070,653) (99,774) - (1,170,427) (240,352) Net cash provided by (used in) operating activities 490,496 375,009 (88,240) 777,265 85,431 Cash flows from non-capital financing activities: Transfers in 17,257 - 129,617 146,874 14,995 Transfers out (370,036) (131,234) - (501,270) (58,569) Net cash provided by (used in) non-capital financing activities (352,779) (131,234) 129,617 (354,396) (43,574) Cash flows from capital related financing activities: Acquisition and construction of capital assets (234,943) - - (234,943) (148,903) Investments - 1,011,524 - 1,011,524 2,528,845 Special assessments received - - 68,159 68,159 - Principal paid on ling-term debt - - 100,000 100,000 - Payment on long term debt (100,000) (100,000) - Issuance cost - - (18,531) (18,531) - Interest paid on capital debt - - (57,703) (57,703) - Net cash provided by (used in) capital and related financing activitie (234,943) 1,011,528 (8,075) 768,510 2,379,942 Cash flows from investing activities: Interest and other income 2,290 9,711 (18,365) (6,364) 20,408 Net cash provided by (used in) investing activities 2,290 9,711 (18,365) (6,364) 20,408 Net increase (decrease) in cash and cash equivalents (94,936) 1,265,014 14,937 1,185,015 2,442,207 Cash and cash equivalents, October 1 1,426,668 102,622 5,409 1,534,699 - Cash and cash equivalents, September 30 1,331,732$ 1,367,636$ 20,346$ 2,719,714$ 2,442,207$ Reported in statement of net position as follows: Unrestricted 1,331,732$ 1,367,636$ 14,937$ 2,714,305$ 2,442,207$ Restricted - - 5,409 5,409 - 1,331,732$ 1,367,636$ 20,346$ 2,719,714$ 2,442,207$ Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) 103,260$ 196,976$ (9,920)$ 290,316$ 62,641$ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 219,134 78,800 - 297,934 333,166 Change in assets and liabilities: (Increase) decrease in: Accounts receivable 18,414 4,135 - 22,549 46,707 Inventories 556 - - 556 12,156 Prepaids - - - - (12,025) Deferred outflows of resources for pension 28,922 (2,799) - 26,123 2,627 Other assets - - - - 295 Increase (decrease) in: Accounts payable and accrued liabilities 72,808 507 2,539 75,854 (35,868) Compensated absences 27,439 2,353 - 29,792 10,620 OPEB liability(8,388) 796 - (7,592) - Due to other funds - - (83,276) (83,276) (321,898) Unearned revenues 101,132 82,469 2,417 186,018 - Net pension liability 64,769 17,609 - 82,378 27,774 Deferred inflows of resources for pension (137,550) (5,837) - (143,387) (40,764) Total adjustments 387,236 178,033 (78,320) 486,949 22,790 Net cash provided by (used in) operating activities 490,496$ 375,009$ (88,240)$ 777,265$ 85,431$ Noncash capital related financing activities: Contributions -$ -$ 3,717,542$ 3,717,542$ -$ Total noncash capital related financing activities -$ -$ 3,717,542$ 3,717,542$ -$ Enterprise Funds Business-type Activities - MIAMI SHORES VILLAGE, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020 See notes to basic financial statements 21 Pension Private Trust Purpose Funds Trust ASSETS Cash and cash equivalents 908,234$ 1,492,031$ Receivables: Other receivables 105,165 - Accrued interest and dividends 166,375 - Total receivables 271,540 - Investments, at fair value Mutual funds - equity 18,254,200 - Common stock 7,101,374 - Corporate bonds 12,031,283 - U.S. Government securities 2,223,052 - Mortgage backed securities 2,743,315 - Foreign stock 1,010,151 Foreign bonds 178,662 - Municipal bonds 842,778 - Total investments 44,384,815 - Total assets 45,564,589 1,492,031 NET POSITION Net position resticted for pensions and charter school 45,564,589$ 1,492,031$ MIAMI SHORES VILLAGE, FLORIDA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS SEPTEMBER 30, 2020 See notes to basic financial statements 22 Pension Private Trust Purpose Funds Trust ADDITIONS Contributions: Employer 1,211,654$ -$ Employees 481,703 - State of Florida 105,165 - Total contributions 1,798,522 - Investment income: Net depreciation in fair value of investments 2,109,475 - Interest and dividend income 1,782,903 14,036 Total investment income 3,892,378 14,036 Less investment expenses (170,968) - Net investment income 3,721,410 14,036 Total additions 5,519,932 14,036 DEDUCTIONS Benefits paid 2,216,978 - Administrative expenses 144,303 - Total deductions 2,361,281 - Net increase 3,158,651 14,036 Net position resticted for pensions and charter school Beginning of year 42,405,938 1,477,995 End of year 45,564,589$ 1,492,031$ MIAMI SHORES VILLAGE, FLORIDA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020 See notes to basic financial statements 23 NOTES TO BASIC FINANCIAL STATEMENTS MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 24 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. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 25 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued) 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. Grant Fund - This fund accounts for the use of specific designated resources related to grant programs. 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. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 26 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. The financial statements of the Village have been prepared in accordance with generally accepted accounting principles (GAAP) as applied to governmental units in accordance with The Governmental Accounting Standards Board (GASB) pronouncements. 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. 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. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 27 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 market prices to value investments. Differences between cost and market value are recorded as net unrealized gains or losses. Net realized gains or losses for securities which are sold are combined with the unrealized gains and losses and shown as “net appreciation (depreciation) in fair value of investments” in plan net position. Dividends and interest are recognized as earned. Purchases and sales of investments are recorded on a trade-date basis. The Village's investments in Florida PRIME are governed by the provisions of Florida Statutes Section 218.415. Investments in the Village's retirement plans are governed by the Plan's investment policies. E. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e. the current portion of interfund loans) or “advances to/from other funds” (i.e. the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds”. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” F. Inventories and Prepaid Items Inventories are valued at cost using the first-in, first-out (FIFO) method. The costs of governmental fund-type inventories are recorded as expenditures when consumed rather than when purchased (consumption method). In the governmental funds, reported inventories are offset by fund balance reserve which indicates that they do not constitute available spendable resources. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded – in both, the government-wide and fund financial statements – as prepaid items by recording an asset for the prepaid amount and recognizing the expenditure in the year such item is consumed (consumption method). Amounts reported in the governmental funds are offset by an equal reservation of fund balance in the fund financial statements. This is an indication that these components of current assets do not constitute available spending resources. 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. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 28 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Property Taxes (Continued) 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, 2020 was 7.9000 mills ($7.9000 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 acquisition value at the date of donation. Major outlays for capital assets and improvements are capitalized as projects are constructed. The costs of normal maintenance and repairs that do not add value to the asset or materially extend its useful life are not capitalized. Capital assets of the Village are depreciated using the straight-line method over the following estimated useful lives: Assets Years Buildings and improvements 10-40 Land improvements 40 Infrastructure 30 Sanitation equipment 10 Vehicles 5 Other equipment, machinery, furniture and fixtures 3-10 MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 29 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. Deferred Outflows/Inflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The Village has pension amounts of $1,532,558 and OPEB amounts of $38,810 that qualify for reporting in this category on the government-wide statement of net position. 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 of $67,183, pension amounts of $1,109,653, and OPEB amount of $177,060. That quality for reporting in this category on the government – wide statement of net position. 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 workday per month up to a maximum of 720 hours for a general employee. A general employee shall receive payment for one hundred percent (100% to a maximum of 720 hours) of accrued sick leave upon retirement and fifty (50%) upon separation in good standing. For both vacation and sick leave, there is no payout for an employee who is discharged for misconduct, termination or is not in good standing with the Village. All vacation and sick leave is accrued and reported as a fund liability when it is probable that the Village will compensate the employee with expendable available financial resources. Vacation and sick leave is accrued when incurred in proprietary funds and reported as a fund liability. All vacation pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. For governmental funds, compensated absences are generally liquidated by the General Fund. L. Unearned Revenues Unearned revenues include amounts collected before revenue recognition criteria are met and receivables, which, under the modified accrual basis of accounting, are measurable, but not yet available. The unearned items consist primarily of license and permit revenues. Unearned revenues in the proprietary funds are related to billings for the 19-20 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, 2020, 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 10 for further information. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 30 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 an OPEB liability in its government-wide and proprietary financial statements related to the implicit subsidy. For governmental funds, the OPEB liability 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. P. Net Position / Fund Balance Total net position as of September 30, 2020, 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. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 31 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. Net Position / Fund Balance (continued) As of September 30, 2020, 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 resolutions 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. 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. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 32 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Other Total Police General Governmental Governmental General Forfeiture Trust Grants Funds Funds Fund balances: Nonspendable: Prepaids 6,779$ -$ 2,000$ -$ -$ 8,779$ Restricted: Transportation - - - - 786,366 786,366 Library - - 136,944 - 749,520 886,464 Recreation - - 89,238 - - 89,238 Building - - 120,783 - - 120,783 Charter School - - 121,650 - 7,788 129,438 Public Safety - 1,188,095 513 - 29,185 1,217,793 Debt service - - - - 1,209,480 1,209,480 Committed: Capital projects - - - - 1,442,733 1,442,733 Unassigned 9,279,090 - - (3,357,706) - 5,921,384 Total Fund Balances 9,285,869$ 1,188,095$ 471,128$ (3,357,706)$ 4,225,072$ 11,812,458$ Fund Balances: Nonspendable 6,779$ -$ 2,000$ -$ -$ 8,779$ Restricted - 1,188,095 469,128 - 2,782,339 4,439,562 Committed - - - - 1,442,733 1,442,733 Unassigned 9,279,090 - - (3,357,706) - 5,921,384 Total Fund Balances 9,285,869$ 1,188,095$ 471,128$ (3,357,706)$ 4,225,072$ 11,812,458$ Q. 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. R. Capital Contributions Capital contributions in proprietary fund financial statements arise from grants or outside contributions of resources restricted to capital acquisition and construction. S. 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 collectability 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. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 33 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. 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. 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, 2020, the Village complied, in all material respects, with these revenue restrictions. 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. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 34 NOTE 3 – DEPOSITS AND INVESTMENTS (continued) Investments (continued) 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, 2020, there were no redemption fees or maximum transaction amounts, or any other requirements that serve to limit a participant’s daily access to 100 percent of their account value. Investments - Village As of September 30, 2020, the Village had the following investments: Investment Type Fair Value SBA - PRIME 321,144 Total 321,144 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, 2020 is 48 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, 2020, is 63 days. Credit Risk State law limits investments in bonds, U.S. Treasuries and agency obligations, or other evidences of indebtedness to the top ratings issued by nationally recognized statistical rating organizations (NRSRO) of the United States. The PRIME is rated AAAm by Standard and Poor’s. Concentration of Credit Risk The Village’s investment policy does not stipulate any limit on the percentage that can be invested in any one issuer. GASB Statement No. 40 requires disclosure when the percent is 5% or more in any one issuer. As of September 30, 2020, 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. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 35 NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED) Investments Pension Plans (continued) 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: Asset Group General Employees Police Domestic Equity 50%50% International Equity 15%15% Domestic Bonds 35%35% Target Allocation Rate of Return For the fiscal year ending September 30, 2020, the annual money-weighted rate of return on pension plan investments, net pension plan investment expense, was 8.37% for the General Employee Retirement Plan and 8.44% for the Police Retirement Plan. The money weighted rate of return expresses investment performance, net of investment manager and consultant expenses adjusted for the changing amounts actually invested. Inputs to the internal rate of return calculation are determined on a monthly basis. As of September 30, 2020, the Plans had the following investments and maturities: General Employees' Retirement Plan Investment Type Fair Value Less than 1 1-5 6-10 More Than 10 Year Years Years Years Corporate/Foreign Bonds 4,150,981 79,020 1,486,683 1,297,879 1,287,399 U.S. government agencies 953,760 - - 346,830 606,930 Municipal bonds 296,221 - 107,947 188,274 - Collateralized mortgage obligations 771,162 - - 484,588 286,574 Total 6,172,124 79,020 1,594,630 2,317,571 2,180,903 Police Officers' Retirement Plan Investment Type Fair Value Less than 1 1-5 6-10 More Than 10 Year Years Years Years Corporate/Foreign Bonds 8,058,964 163,229 2,926,215 2,458,505 2,511,015 Mortgage Backed Securities 1,789,555 - - 620,481 1,169,074 Municipal bonds 546,557 - 200,503 346,054 - U.S. government agencies 1,451,890 - - 922,559 529,331 Total 11,846,966 163,229 3,126,718 4,347,599 4,209,420 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. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 36 NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED) 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. General Employees' Retirement Plan The following tables disclose credit ratings by investment type, at September 30, 2020: U.S. government guaranteed*1,485,086 24.06% Quality rating of credit risk debt securities AAA 107,224 1.74% AA+836,933 13.56% AA 111,494 1.81% AA-83,684 1.36% A+355,340 5.76% A 361,105 5.85% A-802,579 13.00% BBB+1,112,274 18.02% BBB 693,773 11.24% BBB-222,632 3.61% 4,687,038 75.94% 6,172,124$ 100.00%Total fixed income securities *Obligations of the U.S. government or obligations explicitly or implicitly guaranteed by the U.S. government are not considered to have credit risk and do not have purchase limitations. 2020 Percentange of Portfolio Fair Value Total credit risk debt securities Police Officers' Retirement Plan The following tables disclose credit ratings by investment type, at September 30, 2020: U.S. government guaranteed*2,825,323 23.85% Quality rating of credit risk debt securities AAA 195,098 1.65% AA+1,573,312 13.28% AA 207,475 1.75% AA-167,285 1.41% A+672,557 5.68% A 721,235 6.09% A-1,586,510 13.39% BBB+2,115,550 17.86% BBB 1,353,803 11.43% BBB-428,818 3.62% 9,021,643 76.15% 11,846,966$ 100.00% *Obligations of the U.S. government or obligations explicitly or implicitly guaranteed by the U.S. government are not considered to have credit risk and do not have purchase limitations. 2020 Fair Value Percentange of Portfolio Total credit risk debt securities Total fixed income securities MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 37 NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED) 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, 2020, no investment by any one issuer was above the 5% threshold required for disclosure. Custodial 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. Foreign Currency Risk The Plan may have exposure to foreign currencies by making direct investments in non-U.S. currencies or in securities denominated in non-U.S. currencies, purchasing or selling forward currency exchange contracts in non- U.S. currencies, non-U.S. currency futures contracts and swaps for cross currency investments. Foreign currencies will fluctuate, and may decline, in value relative to the U.S. dollar and other currencies and thereby affect the Funds’ investments in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies. 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 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. The following is a description of the valuation methodologies used for the Plan’s investments measured at fair value: Debt income securities are valued using pricing inputs that reflect the assumptions market participants would 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. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 38 NOTE 4 – FAIR VALUE MEASUREMENT (CONTINUED) The Plans have the following recurring fair value measurements as of September 30, 2020: General Employees' Retirement Plan Quoted Prices Significant in Active Other Markets for Observable Identical Assets Inputs 9/30/2020 (Level 1)(Level 2) Investments by fair value level: Debt securities: U.S. government agencies 771,162$ 484,588$ 286,575$ Municipal bonds 296,221 - 296,221 Collateralized mortgage obligations 953,760 - 953,760 Corporate bonds 4,150,981 - 4,150,981 Total debt securities 6,172,124 484,588 5,687,537 Equity securities: Common stock 2,655,452 2,655,452 - Foreign Stock 377,838 377,838 - Mutual fund equities 7,210,291 7,210,291 - Total equity securities 10,243,580 10,243,580 - Total investments at fair value 16,415,705$ 10,728,168$ 5,687,537$ Fair Value Measurements Using Police Officers' Retirement Plan Quoted Prices Significant in Active Other Markets for Observable Identical Assets Inputs 9/30/2020 (Level 1)(Level 2) Investments by fair value level: Debt securities: U.S. government agencies 1,451,890$ 922,559$ 529,331$ Municipal bonds 546,557 - 546,557 Collateralized mortgage obligations 1,789,555 - 1,789,555 Corporate bonds 8,058,964 - 8,058,964 Total debt securities 11,846,966 922,559 10,924,407 Equity securities: Common stock 4,445,922 4,445,922 - Foreign Stock 632,313 632,313 - Mutual fund equity 11,043,909 11,043,909 - Total equity securities 16,122,144 16,122,144 - Total investments at fair value 27,969,110$ 17,044,703$ 10,924,407$ Fair Value Measurements Using MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 39 NOTE 5 – RECEIVABLES Receivables as of September 30, 2020 for the Village’s individual major funds and non-major funds in the aggregate consist of the following: Water & Non-major Internal Grant Police Sanitation Stormwater Sewer Governmental Enterprise General Fund Forfeiture Fund Fund Fund Funds Funds Total Receivables: Accounts -$ -$ -$ 198,677$ 15,502$ -$ -$ 10,023$ 224,202$ Taxes 504,049 - - - - - 99,625 - 603,674 Special Assessment - - - - - 3,717,542 - - 3,717,542 Grants and other 233,571 463,529 21,478 - - - 95 - 718,673 Total receivables 737,620$ 463,529$ 21,478$ 198,677$ 15,502$ 3,717,542$ 99,720$ 10,023$ 5,264,091$ NOTE 6 – CAPITAL ASSETS Capital assets activity for the fiscal year ended September 30, 2020 was as follows: Governmental activities Beginning Increases Decreases Ending Capital assets not being depreciated: Land 2,386,158 - - 2,386,158 Construction in progress 405,343 1,750,192 - 2,155,535 Total capital assets not being depreciated 2,791,501 1,750,192 - 4,541,693 Capital assets being depreciated: Building and improvements 14,419,599 29,484 - 14,449,083 Infrastructure 24,091,621 229,790 - 24,321,411 Machinery and equipment 7,130,968 481,050 (330,946) 7,281,072 Intangible 1,045,792 20,776 - 1,066,568 Total capital assets being depreciated 46,687,980 761,100 (330,946) 47,118,134 Less accumulated depreciation for: Building and improvements (4,971,747) (297,997) (5,269,744) Infrastructure (17,803,369) (573,403) - (18,376,772) Machinery and equipment (4,180,081) (644,017) 276,890 (4,547,208) Intangible (302,139) (129,122) - (431,261) Total accumulated depreciation (27,257,336) (1,644,539) 276,890 (28,624,985) Total capital assets being depreciated, net 19,430,644 (883,439) (54,056) 18,493,149 Governmental activities capital assets, net 22,222,145$ $ 866,753 $ (54,056)23,034,842$ MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 40 NOTE 6 – CAPITAL ASSETS (CONTINUED) Business-type activities Beginning Increases Decreases Ending Capital assets being depreciated: Machinery and equipment 2,359,701 266,047 (210,250) 2,415,498 Drainage improvements 2,652,170 - - 2,652,170 Total capital assets being depreciated 5,011,871 266,047 (210,250) 5,067,668 Less accumulated depreciation for: Machinery and equipment (1,427,650) (219,134) 179,142 (1,467,642) Drainage improvements (1,005,490) (78,800) - (1,084,290) Total accumulated depreciation (2,433,140) (297,934) 179,142 (2,551,932) Total capital assets being depreciated, net 2,578,731 (31,887) (31,108) 2,515,736 Business-type activities capital assets, net 2,578,731$ (31,887)$ (31,108)$ 2,515,736$ Depreciation expense was charged to functions/programs of the Village as follows: Governmental activities General Government 297,997$ Public Safety 129,122 Public Works 573,403 Culture and Recreation 644,017 Total depreciation expense – governmental activities 1,644,539$ Business- type activities Sanitation 219,134$ Stormwater 78,800 Total depreciation expense – business-type activities 297,934$ NOTE 7 – 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, 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 $138,000 in 2020 to a final payment of $169,000 in 2029. The bonds bear interest at variable rates ranging from 2.49 to 3.03%, payable semi-annually. The bonds are secured by ad-valorem revenues. The indenture contains a provision that in an event of default, outstanding amounts including accrued interest are due immediately. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 41 NOTE 7 – LONG-TERM DEBT (CONTINUED) Miami Shores Village, Florida Refunding General Obligation Bond, Series 2013 (Continued) Debt service requirements to maturity for the fiscal year ending September 30, 2020 are summarized as follows: September 30,Principal Interest Total 2021 138,000 39,887 177,887 2022 145,000 35,604 180,604 2023 146,000 31,201 177,201 2024 152,000 26,692 178,692 2025 153,000 22,077 175,077 2026-2029 653,000 40,053 693,053 1,387,000$ 195,514$ 1,582,514$ 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 193,400 in 2020 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 $947,000. The indenture contains a provision that in an event of default, outstanding amounts including accrued interest are due immediately. Debt service requirements to maturity for the fiscal year ending September 30, 2020 are summarized as follows: 2021 193,400 74,887 268,287 2022 200,300 69,974 270,274 2023 201,800 64,887 266,687 2024 208,200 59,762 267,962 2025 214,200 54,473 268,673 2026-2030 1,160,900 187,883 1,348,783 2031-2033 769,500 39,461 808,961 2,948,300$ 551,327$ 3,499,627$ Florida 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 $1,000,000 of draw down. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 42 NOTE 7 – LONG-TERM DEBT (CONTINUED) . The Village does not currently have unused line of credit or assets placed as collateral for debt. Changes in Governmental Activities Long-term liabilities during the fiscal year ended September 30, 2020 were as follows: Due Beginning Ending within Balance Increases Decreases Balance one year Governmental activities Bonds and notes payable: Refunding General Obligation Bond, Series 2013 1,523,000 - (136,000) 1,387,000 138,000 Refunding General Obligation Bond, Series 2015 3,139,700 - (191,400) 2,948,300 193,400 Total bonds and notes payable 4,662,700 - (327,400) 4,335,300 331,400 Other liabilities: OPEB liability 629,893 - (112,440) 517,453 - Compensated absences 748,956 775,581 (743,297) 781,240 6,906 Net pension liability 4,115,451 809,294 - 4,924,745 - Total other liabilities 5,494,300 1,584,875 (855,737) 6,223,438 6,906 Governmental activity long-term liabilities 10,157,000$ 1,584,875$ (1,183,137)$ 10,558,738$ 338,306$ Business-type activities FLGFC Notes Payable 3,760,000$ -$ -$ 3,760,000$ 60,000$ Other liabilities: OPEB liability 26,369 796 (8,388) 18,777 - Compensated absences 102,975 73,759 (43,963) 132,771 33,193 Net pension liability 110,491 82,378 - 192,869 - Business-type activities long-term liabilities 3,999,835$ 156,933$ (52,351)$ 4,104,417$ 93,193$ For government activities, compensated absences, pension liabilities and other post-employment (OPEB) benefits are generally liquidated by the general fund. Claims and adjustments are liquidated by the Risk Management internal service fund. Accordingly, their long-term liabilities for compensated absences, pension liabilities, and the other post-employment benefit (OPEB) liability are included as part of the totals for governmental activities. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 43 NOTE 8 – INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS Interfund transfer activity for the year ended September 30, 2020 was as follows: Transfers In Transfers Out General Fund $ 400,000 $ 1,615,965 Grant Fund 81,234 - Water & Sewer 49,925 - Sanitation Fund 17,257 350,000 Stormwater Fund - 131,234 Non-Major Governmental Funds 1,592,357 - Internal Service Funds 14,995 58,569 Total $ 2,155,768 $ 2,155,768 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 General Fund transferred $1,566,040 to the Capital Improvement Fund as funding for various ongoing capital projects of the Village. 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, 2019 (for the General Employees Plan) and October 1, 2019 for the Police Plan (the dates of the latest actuarial valuations) consisted of: General Inactive employees:Employees Police Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving them 66 29 Active participants:68 36 Total members 134 65 MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 44 NOTE 9 – EMPLOYEE RETIREMENT PLANS - PLANS’ REPORTING (CONTINUED) 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, 2020, there were 12 members in the DROP and their fair value of DROP investment was $797,918 which is included in the Plan’s net position. At the end of September 30, 2020, the Plan 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, 2020. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 45 NOTE 9 – EMPLOYEE RETIREMENT PLANS - PLANS’ REPORTING (CONTINUED) General Employees’ Retirement Plan (Continued) Funding Requirement (Continued) The actual contribution from the Village for active members were actuarially determined using the actuarial valuation as of October 1, 2019 for the year ended September 30, 2020. The contributions consisted of the following at September 30, 2020: Actual Contribution Percentage of Covered Payroll Village $ 403,199 11.14% Members $ 217,098 N/A Net Pension Liability Total pension liability 18,200,300 Plan fiduciary net position 16,827,923 Net pension liability 1,372,377 Plan fiduciary net position as a percentage of total pension liability 92.46% Significant Actuarial Assumptions The total pension liability was determined by an actuarial valuation as of October 1, 2019 and rolled forward to the measurement date of September 30, 2020 using the following actuarial assumptions: Interest rates: Actuarial Cost Method Entry Age Normal Inflation 2.25% Salary increases 5.00% Including inflation Investment Rate of Return 7.00% Retirement Age Experience-based table of rates that are specific to the type of eligibility 'condition Mortality table The same versions of Pub-2010 Headcount-Weighted Mortality Tables as used by the Florida Retirement System (FRS) in their July 1, 2019 actuarial valuation (with mortality improvements projected to all future years after 2010 using Scale MP-2018). Florida Statutes Chapter 112.63(1)(f) mandates the use of mortality tables from one of the two most recently published FRS actuarial valuation reports. 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 2.25%. The building block long-term real return projections were develop considering the long-term historic capital market returns, 10-15 year expected capital market return assumptions, as well as, historical, current, and expected inflation data. Best estimates of arithmetic real return for each asset class included in the pension plan’s target allocation as of September 30, 2020 are summarized in the following table: : Long-Term Expected Asset Group Real Rate of Return Domestic Equity 7.5% International Equity 8.5% Domestic Bonds 2.5% International Bonds 3.5% Real Estate 4.5% MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 46 NOTE 9 – EMPLOYEE RETIREMENT PLANS - PLANS’ REPORTING (CONTINUED) General Employees’ Retirement Plan (Continued) Discount Rate A single discount rate of 7.00% 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 7.00%. 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 (7.00%) 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 7.00%, 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 (Asset) to the Single Discount Rate Assumption 1% Decrease Rate Assumption 1% Increase 6.00%7.00%8.00% 3,428,080$ $ 1,372,377 (346,238)$ 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, 2020. ASSETS Cash and cash equivalents 354,984$ Investments, at fair value 16,415,705 Accrued interest receivable 57,234 Total assets 16,827,923 Net position restricted for pensions 16,827,923$ STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30, 2020 ADDITIONS Contributions 620,297$ Net investment income 1,373,773 Total additions 1,994,070 DEDUCTIONS Pension benefits 791,587 Administrative expenses 58,202 Total deductions 849,789 Increase 1,144,281 Net position restricted for pensions: Beginning of year 15,683,642 End of year 16,827,923$ STATEMENT OF CHANGES IN PLAN NET POSITION FISCAL YEAR ENDED SEPTEMBER 30, 2020 MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 47 NOTE 9 – EMPLOYEE RETIREMENT PLANS - PLANS’ REPORTING (CONTINUED) 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. 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, 2020, there were 3 members in the DROP and their fair value of DROP investment was $316,346 which is included in the Plan’s net position. At the end of September 30, 2020, the Plan 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, 2020. Pursuant to Chapter 185, Florida Statutes, a portion of all insurance premium tax monies received in excess of the threshold of $60,386 are to be uitlized to provide future minimum extra benefits and may not be used to reduce or offset the contribution requirements of the employer. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 48 NOTE 9 – EMPLOYEE RETIREMENT PLANS - PLANS’ REPORTING (CONTINUED) Police Officers' Retirement Plan (Continued) The actual contribution from the Village for active members were actuarially determined using the actuarial valuation as of October 1, 2019 for the year ended September 30, 2020. The contributions consisted of the following at September 30, 2020: Actual Contribution Percentage of Covered Payroll Village 808,455 27.50% State of Florida 105,165 3.58% Total contributions from Village and State of Florida 913,620 31.08% Members 264,605 N/A Net Pension Liability Total pension liability 33,113,657$ Plan fiduciary net position 28,736,666 Net pension liability 4,376,991 Plan fiduciary net position as a percentage of total pension liability 86.78% Significant Actuarial Assumptions The total pension liability was determined by an actuarial valuation as of October 1, 2019 and rolled forward to the measurement date of September 30, 2020, using the following actuarial assumptions: Interest rates: Actuarial Cost Method Entry Age Normal Inflation 2.25% Salary increases 6.0% Including inflation Investment Rate of Return 7.00% Retirement Age 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. Mortality table The same versions of PUB-2010 Headcount-Weighted Mortality Tables as used by the Florida Retirement System (FRS) in their July 1, 2019 actuarial valuation (with mortality improvements projected for healthy lives to all future years after 2010 using Scale MP-2018). Florida Statutes Chapter 112.63(1)(f) mandates the use of mortality tables from one of the two most recently published FRS actuarial valuation reports. 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 2.25%. The building block long-term real return projections were develop considering the long-term historic capital market returns, 10-15 year expected capital market return assumptions, as well as, historical, current, and expected inflation data. Best estimates of arithmetic real return for each asset class included in the pension plan’s target allocation as of September 30, 2020 are summarized in the following table: Long-Term Expected Asset Group Real Rate of Return Domestic Equity 7.5% International Equity 8.5% Domestic Bonds 2.5% International Bonds 3.5% Real Estate 4.5% MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 49 NOTE 9 – EMPLOYEE RETIREMENT PLANS - PLANS’ REPORTING (CONTINUED) Police Officers' Retirement Plan (Continued) Discount Rate A single discount rate of 7.00% 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 7.00%. 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 (7.00%) 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 7.00%, 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 6.00%7.00%8.00% 8,786,122$ 4,376,991$ 754,109$ 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, 2020. ASSETS Cash and cash equivalents 553,250$ Investments, at fair value 27,969,110 Receivables 214,306 Total assets 28,736,666 Net position restricted for pensions 28,736,666$ STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30, 2020 ADDITIONS Contributions 1,178,225$ Net investment income 2,347,637 Total additions 3,525,862 DEDUCTIONS Pension benefits 1,425,391 Administrative expenses 86,101 Total deductions 1,511,492 Increase 2,014,370 Net position restricted for pensions: Beginning of year 26,722,296 End of year 28,736,666$ STATEMENT OF CHANGES IN PLAN NET POSITION FISCAL YEAR ENDED SEPTEMEBR 30, 2020 MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 50 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 in the General Employees' Retirement Plan (as of October 1, 2019) and the Police Officers' Retirement Plan (as of October 1, 2019) consisted of: General Employees Police Inactive employees: Retirees and beneficiaries currently receiving benefits and 59 29 Retirees entitled to benefits but not yet receiving them 7 0 Active participants:68 36 Total members 134 65 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. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 51 NOTE 10 – EMPLOYEE RETIREMENT PLANS - VILLAGE’S REPORTING (CONTINUED) General Employees’ Retirement Plan (continued) Deferred Retirement Option Plan (continued) 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, 2020, there were 12 members in the DROP and their fair value of DROP investment was $797,918 which is included in the Plan’s net position. At the end of September 30, 2020, 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, 2019. The actual contribution from the Village for active members were actuarially determined using the actuarial valuation as of October 1, 2019 for the year ended September 30, 2020. The contributions consisted of the following at September 30, 2019: Actual Contribution Percentage of Covered Payroll Village $ 403,200 11.36% Members $ 212,987 N/A Net Pension Liability: The Village's net pension liability was measured as of September 30, 2019. The total pension liability used to calculate the net pension liability was determined as of that date. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 52 NOTE 10 – EMPLOYEE RETIREMENT PLANS - VILLAGE’S REPORTING (CONTINUED) General Employees’ Retirement Plan (continued) Significant Actuarial Assumptions The total pension liability was determined by an actuarial valuation as of September 30, 2019, using the following actuarial assumptions: Interest rates: Actuarial Cost Method Entry Age Normal Inflation 2.50% Salary increases 5.50% Including inflation Investment Rate of Return 7.50% Retirement Age Experience-based table of rates that are specific to the type of eligibility 'condition Mortality table RP-2000 Combined Healthy Participant Mortality Table (for pre- retirement mortality) and the RP-2000 Mortality Table for Annuitants (for post-retirement mortality), with mortality improvements projected to all future years after 2000 using Scale BB. For males, the base mortality rates include a 50% blue collar adjustment and a 50% white collar adjustment for General employees and a 90% blue collar adjustment and a 10% white collar adjustment for Police transfers. For females, the base mortality rates include a 100% white collar adjustment. These are the same rates used for Regular Class members of the Florida Retirement System (FRS) for the July 1, 2017 actuarial valuation, as required under Florida Statutes, Chapter 112.63. Long-Term Expected Rate of Return The long-term expected rate of return on pension plan investment was determined using the long-term nominal building block data less the long-term inflation assumption of 2.5%. The building block long-term real return projections were develop considering the long-term historic capital market returns, 10-15 year expected capital market return assumptions, as well as, historical, current, and expected inflation data. Best estimates of arithmetic real return for each asset class included in the pension plan’s target allocation as of September 30, 2019 are summarized in the following table: Long-Term Expected Asset Group Real Rate of Return Domestic Equity 7.5% International Equity 8.5% Domestic Bonds 2.5% International Bonds 3.5% Real Estate 4.5% Discount Rate A single discount rate of 7.50% 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. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 53 NOTE 10 – EMPLOYEE RETIREMENT PLANS VILLAGE’S REPORTING (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, 2019 15,896,701$ 15,246,755$ 649,946$ Service Cost 374,153 - 374,153 Interest 1,197,271 - 1,197,271 Difference between actual & expected experience 35,435 - 35,435 Contributions - Employer - 403,200 (403,200) Contributions - Member - 212,987 (212,987) Benefit Payments (614,486) - (614,486) Net Investment Income - 472,706 (472,706) Benefit Payments - (614,486) 614,486 Administrative Expense - (37,520) 37,520 Reporting period ending at September 30, 2020 16,889,074$ 15,683,642$ 1,205,432$ Plan Fiduciary Net Position as a Percentage of Total Pension Liability 92.86% Covered Payroll 3,549,783$ Net Pension Liability as a Percentage of Covered Payroll 33.96% 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 7.50%, 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: 1% Decrease Rate Assumption 1% Increase 6.50%7.50%8.50% 3,128,875$ $ 1,205,432 (403,073)$ Current Single Discount Pension Expense and Deferred Outflows/(Inflows) of Resources For the year ended September 30, 2020, the Village will recognize pension expense of $207,248. At September 30, 2020, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience 26,110$ 215,018$ Changes in assumptions 305 - Net difference between projected and actual earnings on pension plan investments 535,566 540,829 Total 561,981$ 755,847$ MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 54 NOTE 10 – EMPLOYEE RETIREMENT PLANS - VILLAGE’S REPORTING (CONTINUED) General Employees’ Retirement Plan (Continued) The Village contributions subsequent to the measurement date of $403,200 are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the fiscal year ending September 30, 2021 (which will include the net pension liability measured at September 30, 2020). Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Fiscal year ending September 30, Net Deferred Outflows of Resources 2021 (322,950)$ 2022 (62,514) 2023 57,705 2024 133,893 2025 - Thereafter - Total (193,866)$ 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. 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 MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 55 NOTE 10 – EMPLOYEE RETIREMENT PLANS - VILLAGE’S REPORTING (CONTINUED) Police Officers' Retirement Plan (continued) 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, 2020, there were 3 members in the DROP and their fair value of DROP investment was $316,346 which is included in the Plan’s net position. At the end of September 30, 2020, the Plan 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, 2020. 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, 2019 for the year ended September 30, 2020. The contributions consisted of the following at September 30, 2019: Actual Contribution Percentage of Covered Payroll Village 1,116,211 40.26% State of Florida 214,608 7.74% Total contributions from Village and State of Florida 1,330,819 48.00% Members 249,510 N/A Net Pension Liability: The Village's net pension liability was measured as of September 30, 2019 and the total pension liability used to calculate the net pension liability was determined by the October 1, 2019 actuarial valuation. Significant Actuarial Assumptions The total pension liability was determined by an actuarial valuation as of October 1, 2019 and rolled forward to the measurement date of September 30, 2020, using the following actuarial assumptions: MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 56 NOTE 10 – EMPLOYEE RETIREMENT PLANS - VILLAGE’S REPORTING (CONTINUED) Police Officers' Retirement Plan (continued) Interest rates: Actuarial Cost Method Entry Age Normal Inflation 2.25% Salary increases 6.0% Including inflation Investment Rate of Return 7.00% Retirement Age 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. Mortality table RP-2000 Combined Healthy Participant Mortality Table (for preretirement mortality) and the RP-2000 Mortality Table for Annuitants (for post-retirement mortality), with mortality improvements projected to all future years after 2000 using Scale BB. For males, the base mortality rates include a 90% blue collar adjustment and a 10% white collar adjustment. For females, the base mortality rates include a 100% white collar adjustment. These are the same rates used for Special Risk Class members of the Florida Retirement System (FRS) for the July 1, 2017 actuarial valuation, as required under Florida Statutes, Chapter 112.63. Long-Term Expected Rate of Return The long-term expected rate of return on pension plan investment was determined using the long-term nominal building block data less the long-term inflation assumption of 2.5%. The building block long-term real return projections were develop considering the long-term historic capital market returns, 10-15 year expected capital market return assumptions, as well as, historical, current, and expected inflation data. Best estimates of arithmetic real return for each asset class included in the pension plan’s target allocation as of September 30, 2019 are summarized in the following table: Long-Term Expected Asset Group Real Rate of Return Domestic Equity 7.5% International Equity 8.5% Domestic Bonds 2.5% International Bonds 3.5% Real Estate 4.5% Discount Rate A single discount rate of 7.50% 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. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 57 NOTE 10 – EMPLOYEE RETIREMENT PLANS - VILLAGE’S REPORTING (CONTINUED) 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, 2019 30,282,738$ 26,706,742$ 3,575,996$ Service Cost 737,909 - 737,909 Interest 2,215,570 - 2,215,570 Change of Benefit Terms - - - Difference between actual & expected experience 71,995 - 71,995 Contributions - Employer - 1,116,211 (1,116,211) Contributions - State - 214,608 (214,608) Contributions - Employee (Including Buyback Contributions)- 249,510 (249,510) Change of Assumptions - - - Net Investment Income - 936,089 (936,089) Benefit Payments (2,437,760) (2,437,760) - Administrative Expense - (63,104) 63,104 Other (Changes in State Contribution Reserve (235,974) - (235,974) Reporting period ending at September 30, 2020 30,634,478$ 26,722,296$ 3,912,182$ Plan Fiduciary Net Position as a Percentage of Total Pension Liability 87.23% Covered Payroll 2,772,333$ Net Pension Liability as a Percentage of Covered Payroll 141.12% 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 7.50%, 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: 1% Decrease Rate Assumption 1% Increase 6.50%7.50%8.50% 7,938,363$ $ 3,912,182 607,218$ Current Single Discount For the year ended September 30, 2020, the Village will recognize pension expense of $642,659. At September 30, 2020, the Village reported deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience 100,430$ 764,276$ Changes in assumptions 82,818 125,097 Net difference between projected and actual earnings on pension plan investments 825,918 819,843 Total 1,009,166$ 1,709,216$ The Village contributions subsequent to the measurement date of $1,116,211 are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the fiscal year ending September 30, 2021 (which will include the net pension liability measured at September 30, 2020). MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 58 NOTE 10 – EMPLOYEE RETIREMENT PLANS - VILLAGE’S REPORTING (CONTINUED) Police Officers' Retirement Plan (Continued) Other amounts reported as deferred inflows of resources related to pensions will be recognized in pension expense as follows: Fiscal year ending September 30, Net Deferred Outflows of Resources 2021 (385,929) 2022 (344,372) 2023 (130,203) 2024 155,119 2025 5,335 Thereafter - Total (700,050)$ Reconciliation of pension activity to statement of Net Position General Employees Police Officers'Total Net Pension Liability 1,205,432 3,912,182 5,117,614 Deffered Outflows of Resources 429,614 1,102,944 1,532,558 Deffered Inflows of Resources 220,281 889,372 1,109,653 Pension Expense 207,248 642,659 849,907 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. The amount of settlements for each of the past three fiscal years did not exceed insurance coverage. 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. 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 single employer other post-employment benefit plan in this document; therefore, a separate audited post-employment benefits plan report is not available. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 59 NOTE 13 – OTHER POST EMPLOYMENT BENEFITS Membership As of September 30, 2019 (the date of the latest actuarial valuations) health care and dental plan participants consisted of: Active participants 96 Retired participants 6 Total participants 102 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. Funding Policy Benefits are funded on a pay-as-you-go basis. Total OPEB Liability The Plan’s total OPEB liability of $536,230 was measured as of September 30, 2019 and was determined by an actuarial valuation as of that date. Actuarial assumptions and other inputs The total OPEB liability in the September 30, 2019 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement unless otherwise specified. Valuation Date: September 30, 2020 Measurement Date: September 30, 2020 Actuarial Cost Method Entry Age Normal Inflation 2.25% Discount Rate 2.75% Salary Increases Retirement Age Mortality 5.00%, including inflation for General Employees; and 6.00%, including inflation for Police Officers Experience based table of rates that are specific to the type of eligiblity condition and employment class (Police or General). Mortality tables used in the July 1, 2019 actuarial valuation of the Florida Retirement System. They are based on the results of a statewide experience study covering the period 2013 through 2018. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 60 NOTE 13 – OTHER POST EMPLOYMENT BENEFITS (CONTINUED) Actuarial assumptions and other inputs (Continued) Valuation Date: September 30, 2019 Measurement Date: September 30, 2019 Actuarial Cost Method Entry Age Normal Inflation 2.25% Discount Rate 2.75% Salary Increases Retirement Age Mortality Healthcare Cost Trend Rates Aging factors Expenses Based on the 2013 SOA Study "Health Care Costs ‐ From Birth to Death". Administrative expenses are included in the per capita health costs. Based on the Getzen Model, with trend starting at 0.00% to reflect actual premiums for 2020, then 6.25% for 2021 and gradually decreasing to an ultimate trend rate of 3.99% plus 0.23% increase for excise tax. 5.00%, including inflation for General Employees; and 6.00%, including inflation for Police Officers Experience based table of rates that are specific to the type of eligiblity condition and employment class (Police or General). Mortality tables used in the July 1, 2019 actuarial valuation of the Florida Retirement System. They are based on the results of a statewide experience study covering the period 2013 through 2018. Changes in the Total OPEB Liability Balance at 9/30/19 656,262$ Changes for the year: Service cost 42,514 Interest 25,990 Changes is benefit terms - Changes in assumptions and other input (148,160) Benefit payments (40,376) Net change in OPEB liability (120,032) Balance at 9/30/19 536,230$ Sensitivity of the total OPEB liability to changes in the discount rate assumption The following presents the plan’s total OPEB liability, calculated using a discount rate of 2.75%, as well as what the Plan’s total OPEB liability would be if it were calculated using a discount rate that is one percent lower or one percent higher: 1% Decrease Rate Assumption 1% Increase 1.75%2.75%3.75% 579,789$ 536,230$ 495,372$ Current Discount MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 61 NOTE 13 – OTHER POST EMPLOYMENT BENEFITS (CONTINUED) Sensitivity of the total OPEB liability to the Healthcare Cost Trend Rate assumption The following presents the plan’s total OPEB liability the assured trend rates, calculated using the assumed trend rates as well as what the Plan’s total OPEB liability would be if it were calculated using a trend rate that is one percent lower or one percent higher: 1% Decrease Trend Rate Assumption 1% Increase 474,481$ 536,230$ 609,206$ Current Healthcare Cost OPEB Expenses and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended September 30, 2020, the Village Plan recognized OPEB expenses of $44,154. At September 30, 2019, the Plan reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows of Deferred Inflows of Resources Resources Difference between expected and actual experience 17,149$ ‐$ Changes in assumptions and other inputs ‐ 177,060 Benefit paid after measurement date 21,661 ‐ Total 38,810$ 177,060$ Benefits paid after the measuerment date of $21,661 are reported as deferred outflows of resources and will be recognized as a reduction of total OPEB liability in FYE September 30, 2021. At the beginning of the curent measurement period, the average of the expected remaining service lives for the purposes of recognizing the applicable deferred outflows and inflows of resources established in the current measurement peiod is 5.1 years. Deferred Outflows and Inflows of Resources by Year to be recognized in future OPEB expenses are as follows: The Village contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the fiscal year ending September 30, 2021 (which will include the net pension liability measured at September 30,2020). Fiscal year Ending Net Deffered Inflows September 30 of Resources 2021 (19,094) 2022 (19,094) 2023 (19,094) 2024 (19,094) 2025 (19,094) Thereafter (64,441) Total (159,911)$ Estimated Deferred Outflows of Resources due to benefits paid after the Measurement date is $38,810. NOTE 14 – NEGATIVE FUND BALANCE / NET POSITION The Grants fund reported a negative fund balance in the amount of $3,357,706. This amount is expected to be funded by FEMA funds related to Hurricane Irma, to be received at a later date. The Water and Sewer fund fund reported a negative net position in the amount of $75,755. This amount is expected to be funded by the normal operations of the fund. MIAMI SHORES VILLAGE, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 62 NOTE 15 – RISKS AND UNCETAINTIES During March 2020, the COVID-19 virus was declared a global pandemic as it continued to spread rapidly. Business continuity, including supply chains and consumer demand across a broad range of industries and counties, could continue to be severely impacted for months or beyond as governments and their citizens take significant and unprecedented measures to mitigate the consequences of the pandemic. Management is carefully monitoring the situation and is continuously evaluating its options during this time. No adjustments have been made to these financial statements as a result of this uncertainty. REQUIRED SUPPLEMENTARY INFORMATION MIAMI SHORES VILLAGE, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE GENERAL FUND Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues: Taxes: Property taxes 8,989,268$ 8,989,268$ 9,201,078$ 211,810$ Public service taxes: Communications Services Taxes 1,387,600 1,387,600 1,456,487 68,887 Franchise Fees 653,500 653,500 650,848 (2,652) Total Public service taxes 2,041,100 2,041,100 2,107,335 66,235 Licenses and permits: Business licenses - County 25,000 25,000 22,235 (2,765) Building permits 896,000 896,000 629,087 (266,913) Certificate of reoccupancy 14,000 14,000 12,270 (1,730) Other licenses and permits 314,650 314,650 249,423 (65,227) Total licenses and permits 1,249,650 1,249,650 913,015 (336,635) Intergovernmental revenues: State shared revenues: State revenue sharing 254,585 254,585 266,626 12,041 Local government half cent sales tax 836,910 836,910 735,341 (101,569) Other 740 740 892 152 Total intergovernmental revenues 1,092,235 1,092,235 1,002,859 (89,376) Charges for services: Physical environment 22,250 22,250 14,329 (7,921) Police extra duty 355,450 355,450 254,982 (100,468) Landscape maintenance 20,000 20,000 20,754 754 Culture/recreation 1,900,010 1,900,010 988,175 (911,835) Total charges for services 2,297,710 2,297,710 1,278,240 (1,019,470) Fines and forfeitures: Court fines and costs 10,365 10,365 11,967 1,602 School crossing guards 18,000 18,000 12,116 (5,884) Other 186,350 1,061,350 933,666 (127,684) Total fines and forfeitures 214,715 1,089,715 957,749 (131,966) Miscellaneous: Rents 360,000 360,000 421,330 61,330 Other 94,545 94,545 117,000 22,455 Total miscellaneous 454,545 454,545 538,330 83,785 Interest 120,000 120,000 71,392 (48,608) Total revenues 16,459,223$ 17,334,223$ 16,069,998$ (1,264,225)$ Budgeted Amounts FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020 See notes to budgetary comparison schedule 63 MIAMI SHORES VILLAGE, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE GENERAL FUND Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Expenditures: Current: General government: Village council 95,197$ 95,197$ 13,640$ 81,557$ Village attorney 250,800 385,800 385,540 260 Village manager 463,970 463,970 452,179 11,791 Village clerk 167,133 172,134 149,221 22,913 Planning and zoning 188,337 188,337 180,282 8,055 Finance 561,526 522,766 412,012 110,754 Other general government 1,104,442 1,374,339 953,750 420,589 Total general government 2,831,405 3,202,543 2,546,624 655,919 Public safety: Law enforcement 7,421,277 7,545,668 6,637,188 908,480 School crossing guard 50,699 50,699 42,754 7,945 Building 612,023 633,023 629,616 3,407 Code 233,880 233,880 217,565 16,315 Total public safety 8,317,879 8,463,270 7,527,123 936,147 Public works: Parks 399,082 406,039 369,182 36,857 Street maintenance 789,721 791,893 685,858 106,035 Public works administration 471,006 471,006 459,393 11,613 Recreation maintenance 260,132 267,078 206,493 60,585 Total public services 1,919,941 1,936,016 1,720,926 215,090 Culture and recreation: Recreation 2,471,353 2,537,136 1,906,328 630,808 Library 487,680 494,080 449,475 44,605 Total culture and recreation 2,959,033 3,031,216 2,355,803 675,413 Total expenditures 16,028,258 16,633,045 14,150,476 2,482,569 (Deficiency) of revenues (under) expenditures 430,965 701,178 1,919,522 1,218,344 Other financing sources (uses): Transfers in 400,000 400,000 400,000 - Transfers out (830,965) (1,730,965) (1,615,965) 115,000 (Deficiency) of revenues (under) other financing sources (uses)- (629,787) 703,557 1,333,344 Fund balance appropriated - 629,787 - 629,787$ Net change in fund balance - - 703,557 Fund balance, beginning - - 8,582,312 Fund balance, ending -$ -$ 9,285,869$ FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020 Budgeted Amounts See notes to budgetary comparison schedule 64 MIAMI SHORES VILLAGE, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULE SEPTEMBER 30, 2020 65 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, Local Option Gas Tax Fund, Transportation, 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 $604,787, during the fiscal year ended September 30, 2020 for funding outstanding obligations and unanticipated expenses f) Unencumbered appropriations lapse at year end. Reporting fiscal year ending September 30, 202020192018201720162015Measurement fiscal year ending September 30, 2019 2018 2017 2016 2015 2014Total Pension LiabilityService Cost374,153$ 355,620$ 345,113$ 315,449$ 325,868$ 308,880$ Interest1,197,271 1,129,866 1,134,060 1,079,053 1,018,010 960,279 Difference between actual & expected experienceof the Total Pension Liability35,435 - (931,742) - 106,918 (7,788) Difference between actual & expected assupmtion645 - 317,996 - - Benefit Payments(614,486) (597,378) (630,350) (639,713) (655,520) (373,038) Refunds- - - - - (28,655) Net Change in Total Pension Liability992,373 888,753 (82,919) 1,072,785 795,276 859,678 Total Pension Liability - Beginning15,896,701 15,007,948 15,090,867 14,018,082 13,222,806 12,363,128 Total Pension Liability - Ending (a)16,889,074$ 15,896,701$ 15,007,948$ 15,090,867$ 14,018,082$ 13,222,806$ Plan Fiduciary Net PositionContributions - Employer 403,200$ 443,102$ 443,102$ 371,453$ 371,453$ 261,966$ Contributions - Member 212,987 201,687 186,555 188,786 188,793 179,680 Net Investment Income 472,706 1,452,542 1,531,913 1,074,730 (160,205) 715,959 Benefit Payments (614,486) (597,378) (630,350) (639,713) (655,520) (373,038) Refunds- - - - - (28,655) Administrative Expense(37,520) (40,842) (42,936) (69,962) (15,448) (29,411) Net Change in Plan Fiduciary Net Position436,887 1,459,111 1,488,284 925,294 (270,927) 726,501 Plan Fiduciary Net Position - Beginning 15,246,755 13,787,644 12,299,360 11,374,066 11,644,993 10,918,492 Plan Fiduciary Net Position - Ending (b) 15,683,642$ 15,246,755$ 13,787,644$ 12,299,360$ 11,374,066$ 11,644,993$ Net Pension Liability - Ending (a) - (b)1,205,432$ 649,946$ 1,220,304$ 2,791,507$ 2,644,016$ 1,577,813$ Plan Fiduciary Net Position as a Percentage of Total Pension Liability 92.86% 95.91% 91.87% 81.50% 81.14% 88.07%Covered Payroll 13,549,783$ 3,361,450$ 3,109,250$ 3,146,433$ 3,146,550$ 2,994,667$ Net Pension Liability as a Percentage of Covered Payroll 33.96% 19.34% 39.25% 88.72% 84.03% 52.69%1This 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 whichinformation is available.Covered Payroll was calculated by dividing the total member contributions for the fiscal year by the member contribution rate of 6%.MIAMI SHORES VILLAGE, FLORIDAREQUIRED SUPPLEMENTARY INFORMATIONSCHEDULE OF CHANGES IN VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOSGENERAL EMPLOYEES' RETIREMENT SYSTEM (VILLAGE'S REPORTING)(as required by GASB Statement No. 68)66 Fiscal year ending September 30, 2020201920182017201620152014Total Pension LiabilityService Cost393,715$ 374,153$ 355,620$ 345,113$ 315,449$ 325,868$ 308,880$ Interest1,263,867 1,197,271 1,199,747 1,134,060 1,070,820 1,018,010 960,279 Difference between actual & expected experience38,093 - (1,001,623) - 115,151 - (7,788) Assumption Changes442,573 - 645 - 317,996 - - Benefit Payments(791,587) (614,486) (597,378) (630,350) (639,713) (655,520) (373,038) Refunds- - - - - - (28,655) Net Change in Total Pension Liability1,346,661 956,938 (42,989) 848,823 1,179,703 688,358 859,678 Total Pension Liability - Beginning16,853,639 15,896,701 15,939,690 15,090,867 13,911,164 13,222,806 12,363,128 Total Pension Liability - Ending (a)18,200,300$ 16,853,639$ 15,896,701$ 15,939,690$ 15,090,867$ 13,911,164$ 13,222,806$ Plan Fiduciary Net PositionContributions - Employer 403,199$ 403,200$ 443,102$ 443,102$ 371,453$ 371,453$ 261,966$ Contributions - Member 217,098 212,987 201,687 186,555 188,786 188,793 179,680 Net Investment Income 1,373,773 472,706 1,452,542 1,531,913 1,074,730 (160,205) 715,959 Benefit Payments (791,587) (614,486) (597,378) (630,350) (639,713) (655,520) (373,038) Refunds- - - - - - (28,655) Administrative Expense(58,202) (37,520) (40,842) (42,936) (69,962) (15,448) (29,411) Net Change in Plan Fiduciary Net Position1,144,281 436,887 1,459,111 1,488,284 925,294 (270,927) 726,501 Plan Fiduciary Net Position - Beginning 15,683,642 15,246,755 13,787,644 12,299,360 11,374,066 11,644,993 10,918,492 Plan Fiduciary Net Position - Ending (b) 16,827,923$ 15,683,642$ 15,246,755$ 13,787,644$ 12,299,360$ 11,374,066$ 11,644,993$ Net Pension Liability - Ending (a) - (b)1,372,377$ 1,169,997$ 649,946$ 2,152,046$ 2,791,507$ 2,537,098$ 1,577,813$ Plan Fiduciary Net Position as a Percentage of Total Pension Liability 92.46% 93.06% 95.91% 86.50% 81.50% 81.76% 88.07%Covered Payroll 13,618,300$ 3,549,783$ 3,361,450$ 3,109,250$ 3,146,433$ 3,146,550$ 2,994,667$ Net Pension Liability as a Percentage of Covered Payroll 37.93% 32.96% 19.34% 69.21% 88.72% 80.63% 52.69%1This schedule is presented toillustrate 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 informationis available.(as required by GASB Statement No. 67)MIAMI SHORES VILLAGE, FLORIDAREQUIRED SUPPLEMENTARY INFORMATIONSCHEDULE OF CHANGES IN VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOSGENERAL EMPLOYEES' RETIREMENT SYSTEM (PLAN'S REPORTING)Covered Payroll was calculated by dividing the total member contributions for the fiscal year by the member contribution rate of 6%.67 Fiscal Year Actuarially Contribution Actual Contribution Ending Determined Actual Deficiency Covered as a % of September 30,Contribution Contribution (Excess) Payroll Covered Payroll 2020 403,199$ 403,199$ -$ 3,618,300$ 11.14% 2019 403,199 403,200 (1.00) 3,549,783 11.36% 2018 443,102 443,102 - 3,361,450 13.18% 2017 443,102 443,102 - 3,109,250 14.25% 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% Valuation Date October 1, 2017 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 2.5% Salary Increases 5.50% , including inflation Investment Rate of Return 7.50% Retirement Age Mortality Notes to the Schedule of Contributions MIAMI SHORES VILLAGE, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS GENERAL EMPLOYEES' RETIREMENT SYSTEM (VILLAGE'S REPORTING) Note: Covered Payroll was calculated by dividing the total member contributions for the fiscal year by the member contribution rate of 6%. (as required by GASB Statement No. 68) 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. Experience-based table of rates that are specific to the type of eligibility condition. RP-2000 Combined Healthy Participant Mortality Table (for pre-retirement mortality) and the RP-2000 Mortality Table for Annuitants (for post-retirement mortality), with mortality improvements projected to all future years after 2000 using Scale BB. For males, the base mortality rates include a 50% blue collar adjustment and a 50% white collar adjustment for General employees and a 90% blue collar adjustment and a 10% white collar adjustment for Police transfers. For females, the base mortality rates include a 100% white collar adjustment. These are the same rates as used by the Florida Retirement System (FRS) in their July 1, 2017 Actuarial Valuation, as required under Florida Statutes, Chapter 112.63. Actuarial Cost Method 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. 68 Fiscal Year Actuarially Contribution Actual Contribution Ending Determined Actual Deficiency Covered as a % of September 30,Contribution Contribution (Excess) Payroll1 Covered Payroll 2020 403,199$ 403,199$ -$ 3,618,300$ 11.14% 2019 403,199 403,200 (1) 3,549,783 11.36% 2018 443,102 443,102 - 3,361,450 13.18% 2017 443,102 443,102 - 3,361,450 13.18% 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 10/1/2017 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 2.50% Salary Increases 5.50%, including inflation Investment Rate of Return 7.50% Retirement Age Mortality 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. MIAMI SHORES VILLAGE, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS GENERAL EMPLOYEES' RETIREMENT SYSTEM (PLAN'S REPORTING) (as required by GASB Statement No. 67) Covered Payroll was calculated by dividing the total member contributions for the fiscal year by the member contribution rate of 6%. Notes to the Schedule of Contributions 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 Experience-based table of rates that are specific to the type of eligibility condition RP-2000 Combined Healthy Participant Mortality Table (for pre-retirement mortality) and the RP-2000 Mortality Table for Annuitants (for post- retirement mortality), with mortality improvements projected to all future years after 2000 using Scale BB. For males, the base mortality rates include a 50% blue collar adjustment and a 50% white collar adjustment for General employees and a 90% blue collar adjustment and a 10% white collar adjustment for Police transfers. For females, the base mortality rates include a 100% white collar adjustment. These are the same rates as used by the Florida Retirement System (FRS) in their July 1, 2017 Actuarial Valuation, as required under Florida Statutes, Chapter 112.63. 69 Fiscal year ending September 30, Annual Money-Weighted Rate of Return, Net of Investment Expense 2020 8.37% 2019 2.85% 2018 10.22% 2017 11.96% 2016 8.73% 2015 -1.20% 2014 6.23% 2013 10.44% 2012 12.95% 2011 9.06% 2010 8.51% MIAMI SHORES VILLAGE, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF INVESTMENT RETURNS GENERAL EMPLOYEES' RETIREMENT SYSTEM 70 Reporting fiscal year ending September 30, 202020192018201720162015Measurement fiscal year ending September 30, 2019 2018 2017 2016 2015 2014Total Pension LiabilityService Cost737,909$ 686,704$ 660,242$ 536,463$ 554,721$ 672,275$ Interest2,215,570 2,232,269 2,115,601 1,991,408 1,937,284 1,796,408 Benefit Changes- - - - (173,336) - Difference between actual & expected experience71,995 (1,142,939) 101,437 (51,582) (582,646) 5,315 Assumption Changes- - (303,810) 326,835 307,647 - Benefit Payments(2,437,760) (1,279,385) (950,094) (1,023,327) (941,093) (1,180,510) Other(235,974) 69,509 70,382 65,088 - 113,175 Net Change in Total Pension Liability351,740 566,158 1,693,758 1,844,885 1,102,577 1,406,663 Total Pension Liability - Beginning30,282,738 29,716,580 28,022,822 26,177,937 25,075,360 23,668,697 Total Pension Liability - Ending (a)30,634,478$ 30,282,738$ 29,716,580$ 28,022,822$ 26,177,937$ 25,075,360$ Plan Fiduciary Net PositionContributions - Employer (from Village)1,116,211$ 1,165,400$ 1,105,854$ 1,122,197$ 1,249,668$ 11,207,161$ Contributions - Employer (from State)214,608 3 99,702 100,575 95,281 - 2173,561 Contributions - Member 249,510 231,040 210,630 191,425 180,728 205,660 Net Investment Income 936,089 2,464,134 2,495,997 1,818,553 (201,097) 1,168,552 Benefit Payments(2,437,760) (1,279,385) (950,094) (1,023,327) (941,093) (1,180,510) Administrative Expense (63,104) (55,307) (62,709) (78,167) (11,783) (39,391) Net Change in Plan Fiduciary Net Position15,554 2,625,584 2,900,253 2,125,962 276,423 1,535,033 Plan Fiduciary Net Position - Beginning 26,706,742 24,081,158 21,180,905 19,054,943 18,778,520 17,243,487 Plan Fiduciary Net Position - Ending (b) 26,722,296$ 26,706,742$ 24,081,158$ 21,180,905$ 19,054,943$ 18,778,520$ Net Pension Liability - Ending (a) - (b)3,912,182$ 3,575,996$ 5,635,422$ 6,841,917$ 7,122,994$ 6,296,840$ Plan Fiduciary Net Position as a Percentage of Total Pension Liability 87.23% 88.19% 81.04% 75.58% 72.79% 74.89%Covered Payroll 42,772,333$ 2,567,111$ 2,340,333$ 2,126,944$ 2,008,089$ 2,285,111$ Net Pension Liability as a Percentage of Covered Payroll 141.12% 139.30% 240.80% 321.68% 354.72% 275.56%1234This 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 whichinformation is available.MIAMI SHORES VILLAGE, FLORIDAREQUIRED SUPPLEMENTARY INFORMATIONSCHEDULE OF CHANGES IN VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOSPOLICE OFFICERS' RETIREMENT SYSTEM (VILLAGE'S REPORTING)Covered Payroll was calculated by dividing the total member contributions for the fiscal year by the member contribution rate of 9%.Includes receivable Employer contribution in the amount of $32,922 for fiscal year ending September 30, 2015.(as required by GASB Statement No. 68)State contributions for fiscal year ending September 30, 2015 were not received until after the end of the fiscal year (therefore not permitted to be used until next fiscal year).Two year's worth of state contributions were received in fiscal year ending September 30,201971 Fiscal year ending September 30, 2020201920182017201620152014Total Pension LiabilityService Cost826,391$ 737,909$ 686,704$ 660,242$ 536,463$ 554,721$ 672,275$ Interest2,306,113 2,215,570 2,232,269 2,115,601 1,991,408 1,937,284 1,796,408 Benefit Changes- - - - - (173,336) - Difference between actual & expected experience(34,466) 71,995 (1,142,939) 101,437 (51,582) (582,646) 5,315 Assumption Changes795,173 - - (303,810) 326,835 307,647 - Benefit Payments(1,425,391) (2,437,760) (1,279,385) (950,094) (1,023,327) (941,093) (1,180,510) Other11,359 (235,974) 69,509 70,382 65,088 - 113,175 Net Change in Total Pension Liability2,479,179 351,740 566,158 1,693,758 1,844,885 1,102,577 1,406,663 Total Pension Liability - Beginning30,634,478 30,282,738 29,716,580 28,022,822 26,177,937 25,075,360 23,668,697 Total Pension Liability - Ending (a)33,113,657$ 30,634,478$ 30,282,738$ 29,716,580$ 28,022,822$ 26,177,937$ 25,075,360$ Plan Fiduciary Net PositionContributions - Employer 808,455$ 1,116,211$ 1,165,400$ 1,105,854$ 1,122,197$ 1,249,668$ 11,207,161$ Contributions - Employer (from State)105,165 214,608 499,702 100,575 95,281 - 2173,561 Contributions - Member 264,605 249,510 231,040 210,630 191,425 180,728 205,660 Net Investment Income 2,347,637 936,089 2,464,134 2,495,997 1,818,553 (201,097) 1,168,552 Benefit Payments (1,425,391) (2,437,760) (1,279,385) (950,094) (1,023,327) (941,093) (1,180,510) Administrative Expense(86,101) (63,104) (55,307) (62,709) (78,167) (11,783) (39,392) Net Change in Plan Fiduciary Net Position2,014,370 15,554 2,625,584 2,900,253 2,125,962 276,423 1,535,032 Plan Fiduciary Net Position - Beginning 26,722,296 26,706,742 24,081,158 21,180,905 19,054,943 18,778,520 17,243,488 Plan Fiduciary Net Position - Ending (b) 28,736,666$ 26,722,296$ 26,706,742$ 24,081,158$ 21,180,905$ 19,054,943$ 18,778,520$ Net Pension Liability - Ending (a) - (b)4,376,991$ 3,912,182$ 3,575,996$ 5,635,422$ 6,841,917$ 7,122,994$ 6,296,840$ Plan Fiduciary Net Position as a Percentage of Total Pension Liability 86.78% 87.23% 88.19% 81.04% 75.58% 72.79% 74.89%Covered Payroll 32,940,056$ 2,772,333$ 2,567,111$ 2,340,333$ 2,126,944$ 2,008,089$ 2,285,111$ Net Pension Liability as a Percentage of Covered Payroll 148.87% 141.12% 139.30% 240.80% 321.68% 354.72% 275.56%1234This 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 isavailable.(as required by GASB Statement No. 67)MIAMI SHORES VILLAGE, FLORIDAREQUIRED SUPPLEMENTARY INFORMATIONSCHEDULE OF CHANGES IN VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOSPOLICE OFFICERS' RETIREMENT SYSTEM (PLAN'S REPORTING)State contributions for fiscal year ending September 30, 2015 were not received until after the end of the fiscal year (therefore not permitted to be used until next fiscal year).Includes receivable Employer contribution in the amount of $32,922 for fiscal year ending September 30, 2015.Covered payroll was calculated by dividing the total member contributions for the fiscal year by the member contributon of 9%.Two years' worth of State contributions were received in fiscal year ending September 30, 2019.72 Fiscal Year Actuarially Contribution Actual Contribution Ending Determined Actual Deficiency Covered as a % of September 30,Contribution Contribution (Excess) Payroll3 Covered Payroll 2020 1,160,361$ 902,261$ 258,100$ 4 2,940,056$ 30.69% 2019 1,146,404 1,305,962 3 (159,558) 2,772,333 47.11% 2018 1,165,401 1,165,400 1 2,567,111 45.40% 2017 1,136,047 1,136,047 - 2,340,333 48.54% 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 4 Valuation Date Notes Methods and Assumptions Used to Determine Contribution Rates: Amortization Method Remaining Amortization Period Asset Valuation Method Inflation Salary Increases 6.50%, including inflation Investment Rate of Return Retirement Age Mortality MIAMI SHORES VILLAGE, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS POLICE OFFICERS' RETIREMENT SYSTEM (VILLAGE'S REPORTING) Note: Covered Payroll was calculated by dividing the total member contributions for the fiscal year by the member contribution rate of 9%. State contributions for fiscal year ending September 30, 2015 were not received until after the end of the fiscal year (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. (as required by GASB Statement No. 68) State contributions for fiscal years ending September 30, 2018 & 2019 were received in fiscal year ending September 30, 2019. As of October 1, 2019, the Village had a prepaid contribution of $420,389, of which $258,100 was used to satisfy the Village’s contribution requirement for fiscal year ending September 30, 2020. All actives are assumed to retire when first eligible for Normal Retirement. The rate of retirement is 1% for each year of eligibility for Early Retirement. This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10- year trend is compiled, pension plans should present information for those years for which information is available. Actuarial Cost Method Notes to the Schedule of Contributions October 1, 2018 Actuarially determined contribution rates are calculated as of October 1, which is two years prior to the end of the fiscal year in which contributions are reported. Entry Age Normal 20 years 2.50% 7.50% Level Dollar, Closed 5-year smoothed market RP-2000 Combined Healthy Participant Mortality Table (for preretirement mortality) and the RP-2000 Mortality Table for Annuitants (for post-retirement mortality), with mortality improvements projected to all future years after 2000 using Scale BB. For males, the base mortality rates include a 90% blue collar adjustment and a 10% white collar adjustment. For females, the base mortality rates include a 100% white collar adjustment. These are the same rates used for Special Risk Class members of the Florida Retirement System (FRS) for the July 1, 2017 actuarial valuation, as required under Florida Statutes, Chapter 112.63. 73 Fiscal Year Actuarially Contribution Actual Contribution Ending Determined Actual Deficiency Covered as a % of September 30,Contribution Contribution (Excess) Payroll Covered Payroll 2020 1,160,361$ 902,261$ 258,100$ 4 2,940,056$ 30.69% 2019 1,146,404 1,305,962 3 (159,558) 2,772,333 47.11% 2018 1,195,594 1,195,593 1 2,567,111 46.57% 2017 1,136,047 1,136,047 - 2,340,333 48.54% 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 4 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 RP-2000 Combined Healthy Participant Mortality Table (for preretirement mortality) and the RP-2000 Mortality Table for Annuitants (for post-retirement mortality), with mortality improvements projected to all future years after 2000 using Scale BB. For males, the base mortality rates include a 90% blue collar adjustment and a 10% white collar adjustment. For females, the base mortality rates include a 100% white collar adjustment. These are the same rates used for Special Risk Class members of the Florida Retirement System (FRS) for the July 1, 2017 actuarial valuation, as required under Florida Statutes, Chapter 112.63. 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. State contributions for fiscal year ending September 30, 2015 were not received until after the end of the fiscal year (therefore not permitted to be used until next fiscal year). 6.5%, including inflation 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. Level Dollar, Closed 5-year smoothed market 20 years 2.5% 7.50% State contributions for fiscal years ending September 30, 2018 & 2019 were received in fiscal year ending September 30, 2019. Note: Covered Payroll was calculated by dividing the total member contributions for the fiscal year by the member contribution rate of 9%. Notes to the Schedule of Contributions October 1, 2018 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 MIAMI SHORES VILLAGE, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS POLICE OFFICERS' RETIREMENT SYSTEM (PLAN'S REPORTING) Includes receivable Employer contribution in the amount of $32,922 for fiscal year ending September 30, (as required by GASB Statement No. 67) As of October 1, 2019, the Village had a prepaid contribution of $420,389, of which $258,100 was used to satisfy the Village’s contribution requirement for fiscal year ending September 30, 2020. 74 Fiscal year ending September 30, Annual Money-Weighted Rate of Return, Net of Investment Expense 2020 8.44% 2019 3.33% 2018 9.83% 2017 11.22% 2016 8.97% 2015 -0.90% 2014 6.30% 2013 9.48% 2012 11.52% 2011 8.38% 2010 7.99% MIAMI SHORES VILLAGE, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF INVESTMENT RETURNS POLICE OFFICERS' RETIREMENT SYSTEM 75 Total OPEB Liability:2020 2019 2018 Service cost 42,514$ 43,470$ 48,122$ Interest 25,990 23,391 22,769 Changes of benefit terms - - (48,084) Differences between expected and actual experience of the Total OPEB Liability 19,098 - - Changes in assumptions (167,258) (16,935) (20,041) Benefit payments (40,376) (36,994) (91,579) Net Change in total OPEB liability (120,032) 12,932 (88,813) Total OPEB liability- beginning 656,262 643,330 732,143 Total OPEB liability- ending 536,230$ 656,262$ 643,330$ Covered payroll 6,004,403$ 6,190,210$ 5,980,879$ Total OPEB liability as a percentage of covered payroll 8.93% 10.60% 10.76% Notes to Schedule: Note: Covered Payroll presented above is an estimate based on data submitted for the September 30, 2019 valuation. GASB Statement 75 defines Covered-employee payroll as the payroll of employees that are provided with OPEB through the OPEB plan, including employees terminating during the measurement period (fiscal year ending September 30, 2019). MIAMI SHORES VILLAGE, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS SEPTEMBER 30, 2020 76 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. 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 BrockwayTransportation Option Enforcement MemorialSurtaxGas TaxTrainingExpansionTotalASSETS Cash and cash equivalents 266,559$ 427,872$ 29,090$ 749,520$ 1,473,041$ Accounts receivable - net 75,026 22,999 95 - 98,120 Total assets 341,585 450,871 29,185 749,520 1,571,161 LIABILITIESAccounts payable and accrued liabilities 2,552 3,538 - - 6,090 Total liabilities 2,552 3,538 - - 6,090 FUND BALANCESRestricted 339,033 447,333 29,185 749,520 1,565,071 Total fund balances 339,033 447,333 29,185 749,520 1,565,071 Total liabilities and fund balances 341,585$ 450,871$ 29,185$ 749,520$ 1,571,161$ MIAMI SHORES VILLAGE, FLORIDACOMBINING BALANCE SHEETNONMAJOR GOVERNMENTAL FUNDSSEPTEMBER 30, 2020Special Revenue Funds77(Continued) Debt ServiceTotalCapital Charter NonmajorImprovement High School GovernmentalGO BondsFundConstructionTotalFundsASSETS Cash and cash equivalents 1,207,880$ 1,456,433$ 14,838$ 1,471,271$ 4,152,192$ Accounts receivable - net 1,600 - - - 99,720 Total assets 1,209,480 1,456,433 14,838 1,471,271 4,251,912 LIABILITIESAccounts payable and accrued liabilities - 13,700 7,050 20,750 26,840 Total liabilities - 13,700 7,050 20,750 26,840 FUND BALANCESRestricted 1,209,480 - 7,788 7,788 2,782,339 Committed - 1,442,733 - 1,442,733 1,442,733 Total fund balances 1,209,480 1,442,733 7,788 1,450,521 4,225,072 Total liabilities and fund balances 1,209,480$ 1,456,433$ 14,838$ 1,471,271$ 4,251,912$ MIAMI SHORES VILLAGE, FLORIDACOMBINING BALANCE SHEETNONMAJOR GOVERNMENTAL FUNDSSEPTEMBER 30, 2020Capital Projects78 Local Law BrockwayTransportation Option Enforcement MemorialSurtaxGas TaxTrainingExpansionTotalRevenues: Intergovernmental revenues 385,147$ 331,889$ -$ -$ 717,036$ Fines and forfeitures - - 1,873 - 1,873 Miscellaneous - - - 21,000 21,000 Interest income 904 1,425 6 6,530 8,865 Total revenues 386,051 333,314 1,879 27,530 748,774 Expenditures: Public works 160,732 237,177 - - 397,909 Capital outlay 172,023 37,250 - 17,095 226,368 Total expenditures 332,755 274,427 - 17,095 624,277 Excess (deficiency) of revenues over (under) expenditures before other financing sources 53,296 58,887 1,879 10,435 124,497 Net change in fund balance 53,296 58,887 1,879 10,435 124,497 Fund balances, beginning 285,737 388,446 27,306 739,085 1,440,574 Fund balances, ending 339,033$ 447,333$ 29,185$ 749,520$ 1,565,071$ FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020MIAMI SHORES VILLAGE, FLORIDACOMBINING STATEMENT OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCESNONMAJOR GOVERNMENTAL FUNDSSpecial Revenue Funds79(Continued) DebtServiceTotalCapital Charter NonmajorImprovement High School GovernmentalGO BondsFundConstructionTotalFundsRevenues: Property taxes 471,448$ -$ -$ -$ 471,448$ Intergovernmental revenues - - - - 717,036 Fines and forfeitures - - - - 1,873 Miscellaneous - - - - 21,000 Interest income 10,838 5,183 - 5,183 24,886 Total revenues 482,286 5,183 - 5,183 1,236,243 Expenditures: General government 5,000 - 13,939 13,939 18,939 Public works - - - - 397,909 Capital outlay - 1,801,394 - 1,801,394 2,027,762 Debt service: Principal 327,400 - - - 327,400 Interest 124,515 - - - 124,515 Total expenditures 456,915 1,801,394 13,939 1,815,333 2,896,525 Excess (deficiency) of revenues over (under) expenditures before other financing sources (uses) 25,371 (1,796,211) (13,939) (1,810,150) (1,660,282) Other financing sources (uses): Transfers in - 1,592,357 - 1,592,357 1,592,357 Total other financing sources (uses) - 1,592,357 - 1,592,357 1,592,357 Net change in fund balance 25,371 (203,854) (13,939) (217,793) (67,925) Fund balances, beginning 1,184,109 1,646,587 21,727 1,668,314 4,292,997 Fund balances, ending 1,209,480$ 1,442,733$ 7,788$ 1,450,521$ 4,225,072$ MIAMI SHORES VILLAGE, FLORIDACOMBINING STATEMENT OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCESNONMAJOR GOVERNMENTAL FUNDSFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020Capital Projects80 Variance with Variance with Final Budget Final BudgetActual Positive Actual PositiveOriginalFinalAmounts(Negative)OriginalFinalAmounts(Negative)Revenues: Intergovernmental revenues 441,060$ 441,060$ 385,147$ (55,913)$ 344,340$ 344,340$ 331,889$ (12,451)$ Interest income 4,080 4,080 904 (3,176) 2,340 2,340 1,425 (915) Total revenues 445,140 445,140 386,051 (59,089) 346,680 346,680 333,314 (13,366) Expenditures:Public works 235,143 235,143 160,732 74,411 271,931 271,931 237,177 34,754 Capital outlay 209,997 259,054 172,023 87,031 177,000 177,000 37,250 139,750 Total expenditures 445,140 494,197 332,755 161,442 448,931 448,931 274,427 174,504 Excess (deficiency) of revenues over (under) expenditures- (49,057) 53,296 102,353 (102,251) (102,251) 58,887 161,138 (Deficiency) of revenues (under) other financing (uses)- (49,057) 53,296 102,353 (102,251) (102,251) 58,887 161,138 Fund balance appropriated - 49,057 - 49,057$ 102,251 102,251 - 102,251$ Net change in fund balance - - 53,296 - - 58,887 Fund balances, beginning - - 285,737 - - 388,446 Fund balances, ending -$ -$ 339,033$ -$ -$ 447,333$ Budgeted Amounts Budgeted AmountsSpecial Revenue FundsMIAMI SHORES VILLAGE, FLORIDASCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL NONMAJOR GOVERNMENTAL FUNDSFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020Transportation Surtax Local Option Gas Tax81 Variance with Variance with Final Budget Final BudgetActual Positive Actual PositiveOriginalFinalAmounts(Negative)OriginalFinalAmounts(Negative)Revenues: Property taxes 456,181$ 456,181$ 471,448$ 15,267$ -$ -$ -$ -$ Interest income 12,000 12,000 10,838 (1,162) - - 5,183 5,183 Total revenues 468,181 468,181 482,286 14,105 - - 5,183 5,183 Expenditures: General government 17,000 17,000 5,000 12,000 - - - - Capital outlay - - - - 2,666,040 3,758,589 1,801,394 1,957,195 Principal 417,400 417,400 327,400 90,000 - - - - Interest 148,781 148,781 124,515 24,266 - - - - Total expenditures 583,181 583,181 456,915 126,266 2,666,040 3,758,589 1,801,394 1,957,195 (Deficiency) of revenues (under) expenditures (115,000) (115,000) 25,371 140,371 (2,666,040) (3,758,589) (1,796,211) 1,962,378 Other financing sources: Transfers in 115,000 115,000 - (115,000) 666,040 1,592,360 1,592,357 (3) Excess (deficiency) of revenues over (under) expenditures and other financing - - 25,371 25,371 (2,000,000) (2,166,229) (203,854) 1,962,375 Fund balance appropriated - - - -$ 2,000,000 2,166,229 - 2,166,229$ Net change in fund balance - - 25,371 - - (203,854) Fund balances, beginning - - 1,184,109 - - 1,646,587 Fund balances, ending -$ -$ 1,209,480$ -$ -$ 1,442,733$ Budgeted Amounts Budgeted AmountsMIAMI SHORES VILLAGE, FLORIDASCHEDULES OF REVENUES, EXPENDITURES AND CHANGES INFUND BALANCES - BUDGET AND ACTUAL NONMAJOR GOVERNMENTAL FUNDSFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020Debt Service Fund Capital Improvement Fund82 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 984,170$ 1,458,037$ 2,442,207$ Accounts receivable - net 10,023 - 10,023 Inventories - 24,799 24,799 Prepaid items 207,069 - 207,069 Total current assets 1,201,262 1,482,836 2,684,098 Capital assets: Capital assets not being depreciated - 7,127 7,127 Capital assets being depreciated, net - 2,106,231 2,106,231 Total noncurrent assets - 2,113,358 2,113,358 Total assets 1,201,262 3,596,194 4,797,456 DEFERRED OUTLOWS OF RESOURCES Pension - 21,481 21,481 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 23,036 29,422 52,458 Compensated absences - 6,906 6,906 Total current liabilities 23,036 36,328 59,364 Noncurrent liabilities: Compensated absences - 20,721 20,721 Net pension liability - 60,271 60,271 Total noncurrent liabilities - 80,992 80,992 Total liabilities 23,036 117,320 140,356 DEFERRED INFLOWS OF RESOURCES Pension - 11,014 11,014 NET POSITION Net investment in capital assets - 2,113,358 2,113,358 Unrestricted 1,178,226 1,375,983 2,554,209 Total net position 1,178,226$ 3,489,341$ 4,667,567$ MIAMI SHORES VILLAGE, FLORIDA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS SEPTEMBER 30, 2020 83 Risk Fleet Management Maintenance Fund Fund Total Revenues: Charges for services 925,524$ 1,279,025$ 2,204,549$ Operating expenses: Administrative and general 66,649 - 66,649 Public works - 675,023 675,023 Personnel expenses - 240,609 240,609 Depreciation - 333,166 333,166 Insurance premiums and claims 826,461 - 826,461 Total operating expenses 893,110 1,248,798 2,141,908 Operating income (loss) 32,414 30,227 62,641 Non-operating revenues: Interest income 10,825 9,583 20,408 Total non-operating revenues 10,825 9,583 20,408 Income before transfers and contributions 43,239 39,810 83,049 Transfers in - 14,995 14,995 Transfers out (41,312) (17,257) (58,569) Change in net position 1,927 37,548 39,475 Net position, beginning 1,176,299 3,451,793 4,628,092 Net position, ending 1,178,226$ 3,489,341$ 4,667,567$ MIAMI SHORES VILLAGE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020 84 Risk Fleet Management Maintenance Fund Fund Total Cash flows from operating activities: Cash received from customers, governments and other funds 967,260$ 609,268$ 1,576,528$ Cash paid to suppliers (1,065,279) (185,466) (1,250,745) Cash paid to employees - (240,352) (240,352) Net cash provided by (used in) operating activities (98,019) 183,450 85,431 Cash flows from non-capital financing activities: Transfers in - 14,995 14,995 Transfers out (41,312) (17,257) (58,569) Net cash (used in) non-capital financing activities (41,312) (2,262) (43,574) Cash flows from capital related financing activities: Acquisition and construction of capital assets - (148,903) (148,903) Investments 1,112,676 1,416,169 2,528,845 Net cash provided by capital and related financing activities 1,112,676 1,267,266 2,379,942 Cash flows from investing activities: Interest and other income 10,825 9,583 20,408 Net cash provided by investing activities 10,825 9,583 20,408 Net increase in cash and cash equivalents 984,170 1,458,037 2,442,207 Cash and cash equivalents, October 1 - - - Cash and cash equivalents, September 30 984,170$ 1,458,037$ 2,442,207$ Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) 32,414$ 30,227$ 62,641$ Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation - 333,166 333,166 Change in assets and liabilities: (Increase) decrease in: Accounts receivable 41,736 4,971 46,707 Inventories - 12,156 12,156 Prepaids (12,025) - (12,025) Deferred outflows of resources for pension - 2,627 2,627 Other assets 295 295 Increase (decrease) in: Accounts payable and accrued liabilities (14,372) (21,496) (35,868) Compensated absences - 10,620 10,620 Due to other funds (145,772) (176,126) (321,898) Net Pension Liability - 27,774 27,774 Deferred inflows of resources for pension - (40,764) (40,764) Total adjustments (130,433) 153,223 22,790 Net cash provided by (used in) operating activities (98,019)$ 183,450$ 85,431$ MIAMI SHORES VILLAGE, FLORIDA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020 85 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. General Employee's Police Pension Pension Trust Trust Total ASSETS Cash and cash equivalents 354,984$ 553,250$ 908,234$ Receivables: Accounts receivable - 105,165 105,165 Accrued interest and dividends 57,234 109,141 166,375 Total receivables 57,234 214,306 271,540 Investments, at fair value: Mutual funds - equity 7,210,291 11,043,909 18,254,200 Common stock 2,655,452 4,445,922 7,101,374 Corporate bonds 4,087,585 7,943,698 12,031,283 U.S. Government securities 771,162 1,451,890 2,223,052 Mortgage backed securities 953,760 1,789,555 2,743,315 Foreign stock 377,838 632,313 1,010,151 Foreign bonds 63,396 115,266 178,662 Municipal bonds 296,221 546,557 842,778 Total investments 16,415,705 27,969,110 44,384,815 Total assets 16,827,923 28,736,666 45,564,589 NET POSITION Net position restricted for pensions 16,827,923$ 28,736,666$ 45,564,589$ MIAMI SHORES VILLAGE, FLORIDA COMBINING STATEMENT OF FIDUCIARY NET POSITION PENSION TRUST FUNDS SEPTEMBER 30, 2020 86 General Employee's Police Pension Pension Trust Trust Total ADDITIONS Contributions: Employer 403,199$ 808,455$ 1,211,654$ Employees 217,098 264,605 481,703 State of Florida - 105,165 105,165 Total contributions 620,297 1,178,225 1,798,522 Investment income: Net depreciation in fair value of investments 791,529 1,317,946 2,109,475 Interest and dividend income 654,925 1,127,978 1,782,903 Total investment 1,446,454 2,445,924 3,892,378 Less investment expenses (72,681) (98,287) (170,968) Net investment income 1,373,773 2,347,637 3,721,410 Total additions 1,994,070 3,525,862 5,519,932 DEDUCTIONS Benefits paid 791,587 1,425,391 2,216,978 Administrative expenses 58,202 86,101 144,303 Total deductions 849,789 1,511,492 2,361,281 Net increase 1,144,281 2,014,370 3,158,651 Net position restricted for pensions Beginning of year 15,683,642 26,722,296 42,405,938 End of year 16,827,923$ 28,736,666$ 45,564,589$ MIAMI SHORES VILLAGE, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION PENSION TRUST FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020 87 STATISTICAL SECTION MIAMI SHORES VILLAGE, FLORIDA STATISTICAL SECTION This part of the Miami Shore Village’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Village’s overall financial health. Contents Page Financial Trends 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 These schedules contain information to help the reader assess the Village’s most significant local revenue source, the property tax. Debt Capacity 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 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 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. 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Governmental activities: Invested in capital assets, net of related debt 18,699,542$ 17,559,445$ 17,975,743$ 15,914,887$ 15,398,737$ 14,140,442$ 14,460,317$ 13,445,077$ 13,160,184$ 12,279,776$ Restricted 4,432,660 4,506,407 5,736,464 6,051,262 5,710,324 5,953,557 5,521,292 6,042,082 5,834,992 3,975,983 Unrestricted 4,044,028 2,570,978 (513,721) 1,622,254 3,452,368 3,737,341 9,971,992 9,916,183 9,592,734 9,904,824 Total governmental activities net assets 27,176,230 24,636,830 23,198,486 23,588,403 24,561,429 23,831,340 29,953,601 29,403,342 28,587,910 26,160,583 Business-type activities: Invested in capital assets, net of related debt 2,515,736 2,578,727 3,117,914 3,257,609 3,123,374 2,785,010 2,195,243 2,252,711 1,921,615 1,924,061 Restricted - - 3,772,478 3,772,478 - - Unrestricted 1,533,117 1,616,804 2,058,190 1,998,469 1,933,358 2,832,838 2,677,461 2,598,838 2,688,382 2,385,331 Total business-type activities net assets 4,048,853 4,195,531 8,948,582 9,028,556 5,056,732 5,617,848 4,872,704 4,851,549 4,609,997 4,309,392 Primary government: Invested in capital assets, net of related debt 21,215,278 20,138,172 21,093,657 19,172,496 18,522,111 16,925,452 16,655,560 15,697,788 15,081,799 14,203,837 Restricted 4,432,660 4,506,407 9,508,942 9,823,740 5,710,324 5,953,557 5,521,292 6,042,082 5,834,992 3,975,983 Unrestricted 5,577,145 4,187,782 1,544,469 3,620,723 5,385,726 6,570,179 12,649,453 12,515,021 12,281,116 12,290,155 Total primary government net assets 31,225,083$ 28,832,361$ 32,147,068$ 32,616,959$ 29,618,161$ 29,449,188$ 34,826,305$ 34,254,891$ 33,197,907$ 30,469,975$ Fiscal Year MIAMI SHORES VILLAGE, FLORIDA NET ASSETS BY COMPONENT FOR THE LAST TEN FISCAL YEARS (accrual basis of accounting) 88 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Governmental activities: General government 3,695,604$ 3,922,392$ 3,206,651$ 3,478,191$ 3,377,218$ 3,159,828$ 2,760,901$ 2,418,939$ 2,336,763$ 2,396,446$ Public safety 7,230,071 7,776,091 6,970,163 7,094,590 6,460,583 6,088,608 6,206,349 6,425,432 5,509,508 5,596,692 Public works 4,400,730 3,933,809 4,820,309 3,860,624 2,502,799 3,492,136 2,239,056 2,385,338 2,346,575 1,949,960 Culture and recreation 2,638,651 3,199,846 3,202,922 3,036,354 3,145,255 2,976,180 2,946,167 2,816,882 2,583,688 2,498,408 Interest on debt 124,515 133,191 126,553 151,794 168,811 272,374 283,840 432,997 425,355 443,542 Total governmental activities expenses 18,089,571 18,965,329 18,326,598 17,621,553 15,654,666 15,989,126 14,436,313 14,479,588 13,201,889 12,885,048 Business-type activities: Sanitation 2,829,293 2,612,667 2,461,906 2,464,762 2,528,666 2,223,695 2,294,399 2,119,723 2,208,585 2,257,285 Stormwater 282,149 279,259 201,904 224,695 237,712 193,174 165,537 180,702 175,761 190,992 Water & Sewer 63,301 4,383,725 148,717 105,707 62,204 - - - - - Total business-type activities expenses 3,174,743 7,275,651 2,812,527 2,795,164 2,828,582 2,416,869 2,459,936 2,300,425 2,384,346 2,448,277 Total primary government expenses 21,264,314 26,240,980 21,139,125 20,416,717 18,483,248 18,405,995 16,896,249 16,780,013 15,586,235 15,333,325 Program revenues: Governmental activities: Charges for services: General government 1,838,539 2,190,376 1,619,903 1,211,656 1,366,832 1,005,762 1,063,095 841,572 1,069,135 1,177,047 Public safety 2,873,248 2,203,635 896,857 1,116,160 790,598 1,027,550 1,087,055 1,553,168 2,326,376 777,655 Public works 34,629 46,912 24,175 62,144 194,349 200,977 117,815 843,218 727,160 814,600 Culture and recreation 650,093 1,442,519 1,577,949 1,356,565 1,388,906 1,568,844 1,436,999 1,375,506 1,293,788 1,117,160 Operating grants and contributions 717,036 815,658 816,300 801,908 798,312 816,380 784,430 87,368 170,234 217,303 Capital grants and contributions - - - - - 35,564 474,079 35,564 47,447 65,921 Total governmental activities program revenues 6,113,545 6,699,100 4,935,184 4,548,433 4,538,997 4,655,077 4,963,473 4,736,396 5,634,140 4,169,686 Business-type activities: Charges for services: Sanitation 2,912,517 2,621,861 2,623,039 2,623,010 2,633,013 2,639,106 2,641,284 2,667,843 2,765,775 2,665,041 Stormwater 479,125 245,805 245,407 244,936 245,269 244,805 244,107 248,132 252,420 248,668 Water & Sewer 38,308 43,868 84,159 70,143 136,855 - - - - Capital grants and contributions - - - 556,382 - 672,381 - - - - Total business-type activities program revenues 3,429,950 2,911,534 2,952,605 3,494,471 3,015,137 3,556,292 2,885,391 2,915,975 3,018,195 2,913,709 Total primary government program revenue 9,543,495$ 9,610,634$ 7,887,789$ 8,042,904$ 7,554,134$ 8,211,369$ 7,848,864$ 7,652,371$ 8,652,335$ 7,083,395$ (Continued) Fiscal Year MIAMI SHORES VILLAGE, FLORIDA CHANGES IN NET ASSETS FOR THE LAST TEN FISCAL YEARS 89 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Net (expenses) revenue: Governmental activities (11,976,026)$ (12,266,229)$ (13,391,414)$ (13,391,414)$ (13,073,120)$ (11,115,669)$ (11,334,049)$ (9,781,236)$ (7,567,750)$ (8,715,362)$ Business-type activities 255,207 (4,364,117) 140,078 140,078 699,307 186,555 1,139,423 425,455 633,849 465,432 (11,720,819) (16,630,346) (13,251,336) (13,251,336) (12,373,813) (10,929,114) (10,194,626) (9,355,781) (6,933,901) (8,249,930) General revenues and other changes in net assets: Governmental activities: Property taxes 9,672,526 9,009,745 8,484,744 7,923,699 7,326,125 6,893,572 6,406,843 6,255,087 6,078,085 6,143,806 Public services tax 2,107,335 2,156,184 2,121,676 2,104,726 2,141,094 2,199,772 2,214,451 2,045,767 2,098,267 2,137,473 Intergovernmental 1,517,940 1,209,452 1,145,885 1,109,035 1,092,365 1,027,237 1,002,183 929,762 918,034 936,215 Miscellaneous 675,139 635,023 662,875 549,075 507,592 827,991 469,614 415,330 493,243 1,019,320 Interest earning - unrestricted 128,434 277,431 115,869 60,740 26,210 29,568 20,670 32,015 61,071 36,378 Gain on sale of capital assets - - - - - 523,164 - - - - Transfers 414,052 416,737 350,076 352,819 400,000 400,000 395,000 395,000 335,000 235,000 Total governmental activities 14,515,426 13,704,572 12,881,125 12,100,094 11,493,386 11,901,304 10,508,761 10,072,961 9,983,700 10,508,192 Business-type activities: Investment earnings 12,167 27,803 17,370 10,623 4,701 5,721 5,708 5,994 1,756 2,313 Other general revenues - - - - - - - - - - Transfers (414,052) (416,737) (350,076) (352,819) (400,000) (400,000) (395,000) (395,000) (335,000) (235,000) Total business-type activities (401,885) (388,934) (332,706) (342,196) (395,299) (394,279) (389,292) (389,006) (333,244) (232,687) Total primary government 14,113,541 13,315,638 12,548,419 11,757,898 11,098,087 11,507,025 10,119,469 9,683,955 9,650,456 10,275,505 Change in net assets: Governmental activities 2,539,400 1,438,343 (510,289) (1,291,320) 377,717 785,635 (825,288) 291,725 2,415,950 1,792,830 Business-type activities (146,678) (4,753,051) (192,628) (202,118) (208,744) (207,724) 750,131 36,449 300,605 232,745 Total primary government 2,392,722$ (3,314,708)$ (702,917)$ (1,493,438)$ 168,973$ 577,911$ (75,157)$ 328,174$ 2,716,555$ 2,025,575$ Fiscal Year MIAMI SHORES VILLAGE, FLORIDA CHANGES IN NET ASSETS (Continued) FOR THE LAST TEN FISCAL YEARS 90 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 General fund: Reserved -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unreserved - - - - - - - - - - Nonspendable *6,779 12,656 17,851 4,506 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 *9,279,090 8,569,656 8,070,645 7,450,908 7,957,802 8,553,593 7,923,177 7,884,961 7,846,925 7,609,716 Total general fund 9,285,869$ 8,582,312$ 8,088,496$ 7,455,414$ 7,965,588$ 8,588,896$ 7,966,437$ 7,963,213$ 7,957,917$ 7,674,710$ All other governmental funds: Reserved -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unreserved reported in: Special revenue funds - - - - - - - - - - Capital project funds - - - - - - - - - - Nonspendable *2,000 2,000 - 5,174 - 59,270 61,225 Restricted *4,439,562 4,526,640 5,736,464 6,046,087 5,710,324 5,953,557 5,731,494 6,042,082 5,798,976 3,975,983 Committed *1,442,733 1,646,587 830,632 768,966 581,630 578,434 649,494 611,766 955,728 1,748,148 Assigned *- - - - - - - - - - Unassigned *(3,357,706) (3,373,275) (3,323,252) (1,079,522) - - - - - - Total all other governmental funds 2,526,589$ 2,801,952$ 3,243,844$ 5,740,705$ 6,291,954$ 6,531,991$ 6,380,988$ 6,653,848$ 6,813,974$ 5,785,356$ *During FY2011 the Village implemented the new fund balance classifications. Fiscal Year MIAMI SHORES VILLAGE, FLORIDA FUND BALANCES FOR GOVERNMENTAL FUNDS FOR THE LAST TEN FISCAL YEARS 91 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Revenues: Taxes 9,672,526$ 9,009,745$ 8,484,744$ 7,923,699$ 7,326,125$ 6,893,572$ 6,406,843$ 6,255,087$ 6,078,085$ 6,143,806$ Public services taxes 2,107,335 2,156,184 2,121,676 2,104,726 2,141,094 2,199,772 2,214,451 2,799,637 2,795,688 2,851,593 Licenses and permits 913,015 1,291,634 1,211,448 1,212,029 1,257,228 1,237,435 1,018,301 841,572 914,833 1,052,626 Intergovernmental 2,234,976 2,025,110 1,962,185 1,910,943 1,890,677 1,879,181 2,219,683 1,052,694 1,135,715 1,219,439 Charges for services 1,278,240 1,898,020 2,034,859 1,829,756 1,732,617 2,059,389 1,980,381 1,941,090 1,734,095 1,542,432 Fines and forfeitures 1,000,705 441,823 489,247 696,709 517,648 613,743 629,524 858,753 1,955,837 423,905 Miscellaneous 675,139 664,688 662,875 549,075 507,592 827,991 555,417 415,330 493,243 986,649 Investment earnings 108,026 231,498 103,199 55,420 24,149 27,058 18,166 32,015 59,289 31,796 Total revenues 17,989,962 17,718,702 17,070,233 16,282,357 15,397,130 15,738,141 15,042,766 14,196,178 15,166,785 14,252,246 Expenditures: General government 2,568,784 2,518,487 3,156,532 3,293,951 3,045,728 3,073,851 2,627,454 2,500,274 2,291,190 2,391,556 Public safety 7,618,226 8,098,441 6,909,490 6,650,384 6,309,748 6,134,782 6,285,671 6,111,942 5,536,160 5,399,589 Public works 2,662,058 2,361,667 4,351,425 3,073,272 1,990,600 1,823,936 1,761,225 1,662,089 1,684,822 1,540,755 Culture and recreation 2,379,177 2,875,148 2,812,709 2,595,807 2,720,207 2,580,527 2,546,688 2,428,789 2,209,660 2,161,213 Capital outlay 2,339,234 1,669,824 1,378,124 1,215,777 1,927,324 1,526,136 1,613,488 1,115,631 1,449,486 1,173,423 Debt services: Principal 327,400 317,100 533,959 674,079 657,889 635,837 589,036 4,362,580 487,690 465,351 Interest 124,515 133,191 141,846 151,794 168,811 272,374 283,840 432,997 421,599 436,736 Total expenditures 18,019,394 17,973,858 19,284,085 17,655,064 16,820,307 16,047,443 15,707,402 18,614,302 14,080,607 13,568,623 (Deficiency) excesss of revenues over expenditures (29,432) (255,156) (2,213,852) (1,372,707) (1,423,177) (309,302) (664,636) (4,418,124) 1,086,178 683,623 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 2,073,591 5,222,774 2,981,015 4,487,608 4,474,312 3,269,070 3,264,673 3,028,480 2,983,374 3,331,180 Transfer out (1,615,965) (4,915,694) (2,630,939) (4,176,324) (4,012,312) (2,837,070) (2,869,673) (2,688,180) (2,757,627) (3,096,180) Total other financing sources (uses)457,626 307,080 350,076 311,284 462,000 1,082,764 395,000 4,263,300 225,747 235,000 Net change in fund balances 428,194$ 51,924$ (1,863,776)$ (1,061,423)$ (961,177)$ 773,462$ (269,636)$ (154,824)$ 1,311,925$ 918,623$ Debt service as a percentage of noncapital expenditures 2.9%2.8%3.8%5.0%5.6%6.3%6.2%27.4%7.2%7.3% Fiscal Year MIAMI SHORES VILLAGE, FLORIDA CHANGES IN FUND BALANCES FOR GOVERNMENTAL FUNDS FOR THE LAST TEN FISCAL YEARS 92 Ad-Valorem Taxes Public Licenses Charges Fines and Interest Fiscal Year General Purpose Service Taxes and Permits Intergovernmental for Services Forfeitures Miscellaneous Income Total 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 2017 7,446,686 2,104,726 1,212,029 1,102,765 1,829,756 554,068 371,309 42,023 14,663,362 2018 8,027,601 2,121,676 1,211,448 1,131,324 2,034,859 435,792 461,779 74,081 15,498,560 2019 8,555,473 2,156,184 1,291,634 1,139,976 1,898,020 251,004 532,950 162,557 15,987,798 2020 9,201,078 2,107,335 913,015 1,002,859 1,278,240 957,749 538,330 71,392 16,069,998 Revenues included in the General and Excise Tax Funds The Excise Tax Fund was closed in FY2019 GENERAL GOVERNMENTAL REVENUES BY SOURCE LAST TEN FISCAL YEARS (accrual basis of accounting) MIAMI SHORES VILLAGE, FLORIDA Fiscal Year Total Total Total Ended Personal Centrally Assessed Direct Tax Market September 30,Property Property Assessed Value Rate Value 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 2017 953,506,766 19,610,810 1,678,470 974,796,046 8.4054 1,879,247,396 2018 1,030,605,970 19,731,712 1,785,659 1,052,123,341 8.3491 2,009,104,786 2019 1,095,746,087 20,399,258 1,887,615 1,118,032,960 8.3192 2,019,624,945 2020 1,173,922,297 20,064,707 2,400,225 1,196,387,229 8.3009 2,084,500,585 Source: Miami-Dade County Property Appraisal Office. Note: Property in the Village is reassessed each year. State law requires the Property Appraiser to appraise property at 100% of market value. The Florida Constitution was amended, effective January 1, 1995, to limit annual increases in assessed value of property with homestead exemption to 3 percent per year or the amount of the Consumer Price index, whichever is less. The increase is not automatic since no assessed value shall exceed market value. Tax rates are per $1,000 of assessed value. MIAMI SHORES VILLAGE, FLORIDA ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY FOR THE LAST TEN FISCAL YEARS 57.67% 56.17% Assessed Value as a percentage of Market Value 57.39% 55.36% 53.26% 58.20% 59.02% 55.94% 52.37% 51.87% 94 Fiscal Total Year Total Direct & Ended City Debt Direct County-Debt Overlapping September 30,Wide Service Rate Wide Service Fire Library School State Rates 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 2017 7.9000 0.5054 8.4054 4.6669 0.4000 2.4282 7.3220 0.8627 24.0852 2018 7.9000 0.4491 8.3491 4.6669 0.4000 2.4282 6.9940 0.8093 23.6475 2019 7.9000 0.4192 8.3192 4.6669 0.4644 2.4207 6.7330 0.7671 23.3713 2020 7.9000 0.4009 8.3009 4.6669 0.4780 2.4207 - 7.1480 0.7795 23.7940 (1) Overlapping rates are those of local and county governments that apply to property owners within the Village of Miami Shores. Additional information: Property tax rates are assessed per $1,000 of Taxable Assessed Valuation Tax rate limits: City 10.000 Mils County 10.000 Mils School 10.000 Mils State 10.000 Mils Source: Miami Dade County Finance Department, Tax Collector's Division Miami Shores Village County Special Districts MIAMI SHORES VILLAGE, FLORIDA PROPERTY TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS (1) FOR THE LAST TEN FISCAL YEARS 95 Percentage Percentage Taxable of Total City Taxable of Total City Assessed Taxable Assessed Taxable Taxpayer Value Rank Value Value Rank Value Tropical Chevrolet, Inc.10,564,576$ 1 0.88%6,283,319$ 3 0.87% Shore Square Properties, LLC 8,949,387 2 0.75%6,615,264 2 0.92% Northern Trust Bank ETAL TRS (Publix)8,834,050 3 0.74%8,189,776 1 1.14% Miami Shores Village 8,504,338 4 0.71%- FPL Energy Services Inc 8,478,595 5 0.71%5,597,818 4 0.78% Carol Invest USA, Inc 4,802,955 6 0.40%- 88 Biscayne Management LLC 4,080,437 7 0.34%- Bank of America NA 3,541,071 8 0.30%- SMSB LLC 3,500,000 9 0.29%- Frederic Puren 3,466,745 10 0.29%- Frances B Everett 3,083,919 5 0.43% DVS LLC 2,821,031 6 0.39% Wal Miami LLC 2,456,175 7 0.34% Comcast of South Florida II Inc.2,328,192 8 0.32% Omar Cassola - 2,263,365 9 0.31% Norton L Barchan - - 2,013,724 10 0.28% Total 64,722,154$ 5.41%41,652,583$ 5.78% MIAMI SHORES VILLAGE, FLORIDA PRINCIPAL PROPERTY TAX PAYERS CURRENT YEAR AND TEN YEARS AGO 2020 2011 96 Fiscal Year Total Levied Collections Ended for the Percentage in Subsequent Percentage September 30,Fiscal Year Amount of Levy Years Amount of Levy 2011 5,769,391 5,474,167 94.9%140,579 5,614,746 97.3% 2012 5,756,124 5,833,835 101.4%60,881 5,894,716 102.4% 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% 2017 7,700,889 7,446,395 96.7%291 7,446,686 96.7% 2018 8,311,774 8,027,509 96.6%92 8,027,601 96.6% 2019 8,832,460 8,555,406 96.9%67 8,555,473 96.9% 2020 9,451,459 9,170,453 97.0%30,692 9,201,078 97.4% 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 97 Enterprise Percentage Fiscal of Actual Year General Taxable Percentage Ended Obligation Loan Revenue Value of of Personal September 30,Bonds Payable Bonds Total Property Income 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%2.62% 2017 5,291,600 222,159 4,680,000 10,193,759 1.05%2.26% 2018 4,979,800 - 4,520,000 9,499,800 0.90%1.89% 2019 4,662,700 - 3,760,000 8,422,700 0.75%1.63% 2020 4,335,300 - 3,760,000 8,095,300 0.68%1.49% Governmental MIAMI SHORES VILLAGE, FLORIDA RATIOS OF OUTSTANDING DEBT BY TYPE FOR THE LAST TEN FISCAL YEARS 98 Percentage Amount Debt Applicable Applicable Governmental Unit Outstanding To City To City 701,809,370 Overlapping debt: Miami-Dade County, Florida (1)2,278,634$ 0.39%8,833$ Miami-Dade County Public Schools (2)935,644 0.35%3,296 Total overlapping debt 3,214,278$ 12,129 Miami Shores Village 4,335 100.00%4,335 Total direct and overlapping debt 3,218,613$ 16,464$ Sources: (1) Miami-Dade County, Finance Department (Includes General Obligation Bonds) (2) The School Board of Miami-Dade County (Includes General Obligation Bonds) (3) The percentage of overlapping debt applicable is estimated using the taxable property value of the Village as compared to the taxable property value of the County and the School Board. MIAMI SHORES VILLAGE, FLORIDA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT AS OF SEPTEMBER 30, 2020 (in thousands) 99 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Debt limit 115,303,423$ 107,140,596$ 100,232,534$ 92,188,005$ 84,566,008$ 77,083,990$ 70,360,232$ 68,441,667$ 65,491,549$ 65,452,382$ Total net debt applicable to limit 4,335,300 4,662,700 4,979,800 5,291,600 5,596,900 5,895,300 6,053,000 6,298,000 6,460,000 6,665,000 Legal debt margin 110,968,123$ 102,477,896$ 95,252,734$ 86,896,405$ 78,969,108$ 71,188,690$ 64,307,232$ 62,143,667$ 59,031,549$ 58,787,382$ Total net debt applicable to the limit as a percentage of debt limit 3.76%4.35%4.97%5.74%6.62%7.65%8.60%9.20%9.86%10.18% Fiscal Year MIAMI SHORES VILLAGE, FLORIDA LEGAL DEBT MARGIN INFORMATION FOR THE LAST TEN FISCAL YEARS 100 Personal Per Income Capita Estimated (Thousand of Personal Unemployment Year Population (1)Dollars) Income (2)Rate (3) 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 10,806 420,883 38,949 5.7% 2017 10,493 450,947 42,976 4.6% 2018 10,810 502,870 46,519 4.1% 2019 10,761 515,592 47,913 3.1% 2020 10,817 544,506 50,338 7.4% Sources: (1) State of Florida Department of Revenue (2) U. S. Census Bureau (3) U.S. Bureau of Labor Statistics MIAMI SHORES VILLAGE, FLORIDA DEMOGRAPHIC AND ECONOMIC STATISTICS FOR THE LAST TEN CALENDAR YEARS 101 Percentage Percentage of Total County of Total County Employer Employees Rank Employment Employees Rank Employment Miami-Dade County Public Schools 33,477 1 1.97%48,571 1 3.81% Miami-Dade County, Florida 25,502 2 1.50%29,000 2 2.28% Federal Government 19,200 3 1.13%19,500 3 1.53% Florida State Government 17,100 4 1.01%17,100 4 1.34% University of Miami 12,818 5 0.75%16,000 5 1.26% Baptist Health South Florida 11,353 6 0.67%13,376 6 1.05% American Airlines 11,031 7 0.65%9,000 9 0.71% Jackson Health System 9,797 8 0.58%12,571 7 0.99% City of Miami 3,997 9 0.24% Florida International University 3,534 10 0.21%8,000 10 0.63% Publix Super Markets - 10,800 8 0.85% Total Civilian Labor Force Employment 1,700,804 Source: The Beacon Council (2015) & U.S. Census Bureau 2020 2011 MIAMI SHORES VILLAGE, FLORIDA PRINCIPAL EMPLOYERS LOCATED IN MIAMI-DADE COUNTY CURRENT YEAR AND TEN YEARS AGO 102 Function/Program 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 General government: Administration: Full time 5 12 11 12 10 10 8 10 9 9 Part time 0 7 6 7 6 6 5 5 5 5 Finance: Full time 3 4 5 6 6 5 5 5 5 5 Part time - - - - - - - - - Public works: Full time 42 42 43 44 43 39 43 41 40 40 Part time 1 1 1 1 1 1 - 1 - - Culture and recreation: Recreation: Full time 15 14 13 13 15 13 12 12 13 13 Part time 28 58 63 63 67 63 72 51 30 30 Library: Full time 4 4 4 4 4 4 2 3 3 3 Part time 5 6 7 6 6 6 8 7 6 6 Public safety Building* Full time 4 Part time 7 Code Compliance* Full time 3 Part time - Police Full time 47 48 48 46 42 40 43 43 44 44 Part time 3 3 3 3 4 4 4 3 3 3 Total 167 199 204 205 204 191 202 181 158 158 * Building & Code Compliance reclassified to Public Safety from General Government in FY2020 Source: Village Finance Office MIAMI SHORES VILLAGE, FLORIDA VILLAGE EMPLOYEES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS Fiscal Year 103 COMPLIANCE SECTION 104 8950 SW 74th Court I Suite 1210 I Miami, FL 33156 T: 305.662.7272 I F: 305.662.4266 I CFLGCPA.COM 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, 2020, 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 25, 2021. 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 Village’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. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Village’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 105 8950 SW 74th Court I Suite 1210 I Miami, FL 33156 T: 305.662.7272 I F: 305.662.4266 I CFLGCPA.COM Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Village’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Village’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Caballero Fierman Llerena & Garcia, LLP Caballero Fierman Llerena & Garcia, LLP Miami, Florida May 25, 2021 106 8950 SW 74th Court I Suite 1210 I Miami, FL 33156 T: 305.662.7272 I F: 305.662.4266 I CFLGCPA.COM 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 basic financial statements of Miami Shores Village, Florida (the “Village”), as of and for the fiscal year ended September 30, 2020, and have issued our report thereon dated May 25, 2021. 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 Reporting Requirements 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, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports which are dated May 25, 2021, 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. This information has been disclosed in the notes to the financial statements. Financial Condition and Management Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate 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 to identify 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. 107 8950 SW 74th Court I Suite 1210 I Miami, FL 33156 T: 305.662.7272 I F: 305.662.4266 I CFLGCPA.COM Financial Condition and Management (Continued) Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for the Village. 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. Section 10.554 (1)(i)(2), Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3, Rules of the Auditor General, requires us to communicate 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 other granting agencies, members of the Village Council and management of the Village, and is not intended to be and should not be used by anyone other than these specified parties. Caballero Fierman Llerena & Garcia, LLP Caballero Fierman Llerena & Garcia, LLP Miami, Florida May 25, 2021 108 8950 SW 74th Court I Suite 1210 I Miami, FL 33156 T: 305.662.7272 I F: 305.662.4266 I CFLGCPA.COM 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’s (the Village) compliance with the requirements of Section 218.415 Florida Statutes during the period of October 1, 2019 to September 30, 2020. Management of the Village is responsible for the Village's compliance with the specified requirements. Our responsibility is to express an opinion on the Village's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Village complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Village complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide 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 requirements of Section 218.415 Florida Statutes during the period of October 1, 2019 to September 30, 2020. This report is intended solely for the information and use of management, the Mayor, the Village Council, others 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. Caballero Fierman Llerena & Garcia, LLP Caballero Fierman Llerena & Garcia, LLP Miami, Florida May 25, 2021